Briefs: Fed expected to cut key interest rate
WASHINGTON -- Federal Reserve policymakers today are widely expected to slice a key interest rate for a third time this year to prevent troubles in the housing and credit markets from sinking the economy. Fed Chairman Ben Bernanke and his colleagues gather, their last meeting of the year, to assess the economy and decide their next move on interest rates. Analysts predict the Fed will trim its key rate, now at 4.5 percent, by one-quarter of a percentage point. A few even speculate about the possibility of a half-point cut.
Bank closing off money market fund
CHARLOTTE, N.C. -- Bank of America is closing off an enhanced money fund to new investors amid withering losses on complex asset-backed securities, the bank said Monday. The Columbia Strategic Cash Portfolio fund for institutional investors that was worth $40 billion only a couple months currently has about $12 billion in assets, the Charlotte-based bank said. The loss is related to the subprime mortgage crisis, spokesman Jon Goldstein said. The fund was a short-term investment pool that offered higher yields than a traditional money-market fund. Unlike traditional money-market funds, this fund didn't offer a guarantee it would maintain a $1-per-share net asset value.
McDonald's sales rise in November
OAK BROOK -- McDonald's Corp. said Monday global same-store sales rose 8.2 percent in November. Same-store sales, or sales at restaurants open at least thirteen months, is a key indicator of retailer performance because it measures growth at existing restaurants rather than newly opened ones. U.S. same-store sales rose 4.4 percent, boosted by sales of coffee, breakfast items and Dollar Menu selections, the company said.
Boeing sells planes to Australian firm
SEATTLE -- Boeing Co. said Monday it received an order for 20 of its popular 737 planes from Babcock & Brown Aircraft Management, an aircraft leasing group, and its partner Nomura Babcock & Brown.
Chicago-based Boeing said the order is worth $1.5 billion at list prices, but buyers typically negotiate significant discounts. The order was previously credited to an unidentified customer on Boeing's Web site.
Babcock & Brown, based in Australia, said the order brings its 737 fleet to more than 125 planes.