Reported by Star-Bulletin staff & wire
Thursday, July 8, 1999
30-year mortgages decline to 7.65%
MCLEAN, Va. -- The benchmark U.S. home mortgage rate fell this week after reaching the highest level in more than two years last week, according to a weekly survey of mortgage rates from Freddie Mac.The ave rage rate on a 30-year fixed-rate mortgage was 7.65 percent, down from last week's 7.71 percent, which was the highest since June 13, 1997.
Freddie Mac also said the average rate on an adjustable mortgage dropped to 5.96 percent from 6.05 percent, and 15-year mortgage rates fell to 7.30 percent from 7.34 percent.
Air Canada, union settle labor dispute
OTTAWA -- Reaching a deal just minutes after a strike deadline passed, Air Canada and its 5,100-member flight attendants union agreed on a new contract today and averted a systemwide shutdown.Pamela Sachs, head of the flight attendants section of the Canadian Union of Public Employees, said the union negotiated improved retirement income, safer and healthier working conditions and wage increases of 5 percent, 4 percent and 3 percent over three years.
Air Canada said full details of the agreement will not be released until union members ratify the agreement.
Safeway earnings up 22% in quarter
PLEASANTON, Calif. -- Safeway Inc., the No. 2 U.S. su permarket chain, said its fiscal second-quarter earnings rose 22 percent on higher sales from acquisitions and continued cost reductions.Net income rose to $236.4 million, or 46 cents a share, from $193.2 million, or 38 cents in the year-earlier period.
The company was expected to earn 44 cents, according to the average estimate of 17 analysts surveyed by First Call Corp.
Safeway, which operates 1,528 stores mostly in the western and midwestern United States and Canada, has been buying other grocers to boos t sales, spread its costs and compete against low-priced retailers such as Wal-Mart Stores Inc. that are entering the supermarket business.