Euro falls on ECB rumours

New York: The euro fell against the dollar for the first day in four on speculation the European Central Bank will signal its currency’s 22% surge in the past year threatens the region’s economic recovery.

ECB President Jean-Claude Trichet may express concern about the euro’s strength at a press conference after the central bank’s monthly meeting on interest rates tomorrow in Frankfurt, according to a survey of economists by Bloomberg News.

“The pressure on Europe is overwhelming,” said Milton Ezrati, senior strategist at Lord Abbett & Co in Jersey City, New Jersey, with about $71 billion in assets. “They cannot tolerate much more euro appreciation, and may sell the currency to stem its rise.”

Enron couple ‘to make plea bargain’

Houston: Former Enron chief financial officer Andrew Fastow and his wife are reportedly negotiating plea bargains that could send them to federal prison for their roles in the accounting scandal that brought down the energy company.

Fastow would be the highest ranking executive to plead guilty in the criminal investigation of Enron’s 2001 collapse.

The Houston Chronicle, citing sources close to the case, reports that federal prosecutors are discussing a 10-year sentence for Fastow and that a plea bargain offered to his wife, Lea, in November for a five-month term is back on the table.

Aluminium firm to boost output

Hong Kong: Aluminium Corp of China, the nation’s biggest maker of the metal, said it will spend 2 billion yuan ($241 million) of the proceeds from a Hong Kong share sale this month to boost output at one of its alumina plants by two-thirds.

The company, also known as Chalco, plans to produce two million tons of the mineral, used to make refined aluminum, at its plant in northern China’s Shanxi province, up from 1.2 million tons, it said in a statement.

Chalco is selling 550 million shares for HK$5.658 each, aiming to raise $395 million to fund expansion of the Shanxi plant and acquisition of domestic aluminum smelters.

Monsanto finances hit by costs

New York: Monsanto, the world’s biggest developer of genetically engineered crops, said its loss widened in the fiscal first quarter on costs to exit European wheat and barley businesses and fire workers.

The net loss for the three months ended November 30 increased to $97 million, or 37c a share, from $18m, or 7c, a year ago, St Louis-based Monsanto said in a statement. Revenue rose 22% to $1.03 billion from $846m.

Excluding expenses to cut units and jobs, Monsanto had a profit of 4c a share in the quarter. On that basis, analysts surveyed by Thomson Financial had expected 1 cent a share.

BA shares rise to post-Sept 11 high.

London: Shares in British Airways rose to a price last seen before the September 11, 2001, terrorist attacks on optimism that a surge in business travel will boost sales this year.

Shares of Air France SA and Spain’s Iberia also rose, giving European airline stocks their biggest lift since June. British Airways shares added 23p, or 9.5%, to 265p.

British Airways said yesterday passenger traffic rose 4.8% in December, the eighth consecutive monthly gain, as first-and business-class passengers resumed flying between Britain and North America and Asia.

The airline said the outlook for revenue was “more positive”.