Brazilian unit acquires refinery assets
Braskem America — the subsidiary of a Brazilian industrial firm that bought Sunoco Chemical two years ago — said it had it acquired the propylene splitter assets at Sunoco's closed refinery in Marcus Hook. The unit produces material used by Braskem in its neighboring plant to manufacture polypropylene plastic, which goes into making such items as food containers, bottle caps, and clothing. "This transaction represents an important step in preserving the viability of Braskem's Marcus Hook polypropylene facility for the foreseeable future and solidifying Braskem's continued commitment to the North American petrochemical market," the company, which is based in Philadelphia, said in a statement. Braskem's supply of propylene had been in question after Sunoco closed the Marcus Hook refinery in December, but Braskem says it now has secured a supply of the raw material from multiple sources.
— Andrew Maykuth
US Airways reports passenger increase
US Airways Group Inc. reported slightly higher passenger counts in June, compared with the same month in 2011, buoyed by increased Latin American travel. Total passenger boardings were 5,394,173, up 0.1 percent from 5,387,677 for June 2011. Passenger revenue per available seat-mile increased about 6 percent for the month, president Scott Kirby said in a statement. "Despite record-setting temperatures and severe weather along the East Coast, our team of 32,000 employees ran an outstanding airline, achieving our best-ever June performance in on-time departures and arrivals and baggage handling," Kirby said. For June, US Airways, Philadelphia's dominant carrier, reported 86.2 percent of its planes arrived on time.
— Paul Nussbaum
ELSEWHERE
U.K. probe for Barclay's
British lawmakers voted to set up a parliamentary probe after Barclays P.L.C.'s manipulation of the London interbank offered rate, or LIBOR, rejecting demands from the opposition Labor Party for a broader judge-led inquiry. Barclays, Britain's second-largest bank by assets, was fined a record $453 million on June 25 for rigging LIBOR, a global benchmark, for profit. Chairman Marcus Agius, chief executive officer Robert Diamond and chief operating officer Jerry Del Missier subsequently resigned. Barclays credit ratings are under threat. Moody's Investors Service cut the outlook on the lender's stand-alone bank financial strength to negative from stable. Standard & Poor's followed, lowering the long-term rating outlook to negative. The ratings companies cited political pressure on the lender's investment bank and the departure of Diamond. — Bloomberg News
Boeing delivers 287 commercial planes
Boeing Co. said that it had delivered 287 commercial airplanes so far this year, including a total of 11 of its new 787s. The 787 deliveries are being closely watched because Boeing is ramping up production of that plane at both its Everett, Wash., factory and a new line in North Charleston, S.C. Boeing delivered six of those planes in the second quarter. Boeing said it delivered 150 commercial planes in the second quarter. Barclays analyst Carter Copeland said the 787 deliveries were fewer than many analysts expected, but shouldn't hurt Boeing's earnings because profit margins on that plane are thin anyway. — AP
Judge issues order on e-mails
JPMorgan Chase & Co. was ordered by a federal judge to explain why it shouldn't be compelled to turn over e-mails sought by federal regulators in a probe of potential energy-market manipulation. U.S. District Judge Colleen Kollar-Kotelly in Washington gave JPMorgan until the end of the day on July 13 to respond. The Federal Energy Regulatory Commission sued JPMorgan on July 2 to release 25 e-mails in an investigation of possible manipulation of power markets in California and the Midwest by J.P. Morgan Ventures Energy Corp. FERC opened the probe in August after complaints from California and Midwest grid operators that JPMorgan's bidding practices were abusive, according to the agency's initial court filing. "We believe we have complied in all respects with the law, as well as FERC rules and applicable tariffs, governing this market," Jennifer Zuccarelli, a JPMorgan spokeswoman, said in an e-mail. "We stress that this investigation is ongoing and that no conclusions have been reached or findings adjudicated." — Bloomberg News
Fixed-rate mortgages at new low
Fixed U.S. mortgage rates fell again to new record lows, providing prospective buyers with more incentive to brave a modestly recovering housing market. Mortgage buyer Freddie Mac said the average on the 30-year loan dropped to 3.62 percent. That's down from 3.66 percent last week and the lowest since long-term mortgages began in the 1950s. The average rate on the 15-year mortgage, a popular refinancing option, slipped to 2.89 percent, below last week's previous record of 2.94 percent. Cheap mortgages have provided a lift to the long-suffering housing market. Sales of new and previously occupied homes are up from the same time last year. Home prices are rising in most markets. — AP
Ireland sells first debt since bailout
Ireland's treasury auctioned $625 million in three-month bills Thursday in its first sale of new debt securities since the country received an international bailout in 2010. Finance Minister Michael Noonan said the sale marked an "important milestone on Ireland's continuing path to recovery." But some commentators dismissed its significance as minuscule and not a credible test of true market sentiment toward Ireland. The bills offered an average annualized payout of 1.8 percent, lower than market expectations of 2 percent. The sale was 2.8 times oversubscribed among 18 eligible international banks and funds. — AP
Money-market fund rates unchanged
The average seven-day yield on taxable money-market funds was 0.03 percent this week, unchanged from last week, according to iMoneyNet Inc. A seven-day yield is an annual yield that is based on the preceding seven days' level of income by the fund. The average yield on tax-free funds was 0.01 percent this week, unchanged from last week. — Rhonda Dickey
