Business briefs: European Union, U.S. working on blockbuster trade deal

EU, U.S. are working on

blockbuster trade deal

BRUSSELS -- The European Union and the United States announced Wednesday that they have agreed to pursue an overarching trans-Atlantic free-trade deal.

The 27-country EU said such an agreement, announced in Tuesday's State of the Union address by President Barack Obama, would be the biggest bilateral trade deal ever negotiated.

Any agreement could boost the EU's economic output by 0.5 percent and the U.S.'s by 0.7 percent, according to some estimates. That would be a highly desirable outcome when the EU and the U.S. are both struggling with slow growth, high unemployment and high debt.

-- The Associated Press

Judge dismisses batch of

Facebook IPO lawsuits

NEW YORK -- A New York judge dismissed a key group of the many lawsuits against Facebook over its initial public offering in May, saying the plaintiffs did not show that they lost money because of corporate wrongdoing.

U.S. District Judge Robert Sweet also agreed with Facebook's claims that the plaintiffs could not prove that they owned its stock at the time of the alleged wrongdoing.

The lawsuits and others still remaining alleged that analysts at large underwriting investment banks cut their financial forecasts for Facebook just before the IPO and told only a few clients.

Facebook and the banks deny wrongdoing.

-- The Associated Press

As taxes rise, Americans

cut back on spending

WASHINGTON, D.C. -- Americans barely spent more last month at retail businesses and restaurants after higher taxes cut their paychecks.

The small increase suggests that consumer spending may be weak in the January-to-March quarter, which could hold back economic growth.

Retail sales ticked up 0.1 percent in January from December, the Commerce Department said Wednesday.

That follows a 0.5 percent increase in December and is the smallest in three months. Sales fell at auto dealerships and clothing and furniture stores.

-- The Associated Press

Slower restocking puts

a damper on economy

WASHINGTON, D.C. -- U.S. companies restocked their store shelves and warehouses at a slower pace in December, a sign of caution as sales weakened. Slower restocking was a major drag on the economy in the final three months of last year.

Business inventories ticked up 0.1 percent in December from November, the Commerce Department said Wednesday.

That was below the 0.2 percent pace the previous month.

-- The Associated Press

Vehicle dependability

reaches all-time high

DETROIT -- Vehicles are more dependable than ever, J.D. Power and Associates says. Its latest study, which measures problems experienced in the last year by owners of 3-year-old vehicles, found that problems fell 5 percent to the lowest level since the firm began collecting data in 1989.

Lexus, Porsche, Lincoln and Toyota owners reported the fewest problems, while Jeep, Mitsubishi, Dodge and Land Rover owners had the most. -- The Associated Press

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