World Economic

Centrue Financial posted a $58,000 profit in the fourth quarter and narrowed its loss in 2011.

The Clayton-based holding company for Centrue Bank reported a profit of $58,000 in the fourth quarter that ended Dec. 31, compared to a $39 million loss in the fourth quarter a year ago. For all of 2011, Centrue Financial posted a loss of $10.6 million, compared with a $65.8 million loss in 2010.

Some of its gains in the fourth quarter came from the sale of a branch in Champaign, Ill., in November. Centrue Financial reported a net gain of $1.3 million from the sale. 

The bank also saw improvement in its loans, with nonperforming loans and charge-offs decreasing in the fourth quarter compared to a year ago.

Last September, Centrue Financial’s leadership changed, with Kurt Stevenson taking on the roles of chief executive and president, replacing Thomas Daiber.

Also last year, Centrue moved its stock listing from Nasdaq to the OTCQB, an electronic marketplace for stocks operated by OTC Markets Group Inc., following a delisting warning from Nasdaq for failure to maintain a minimum one dollar per share price.

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German airline Deutsche Lufthansa AG on Thursday warned of lower profits this year due to high fuel prices and economic uncertainties caused by the debt crisis.

The operating profit is expected to slide from euro820 million ($1.1 billion) in 2011 to a “mid three-figure million euro range” in 2012, it said.

Lufthansa noted that “the implementation of austerity plans in the overly indebted countries of the European Union raises the danger of an overall economic weakening and further receding growth in Europe.”

The cautious forecast came as Lufthansa presented its full-year report, a week after announcing it posted a 2011 net loss of euro13 million because of costs at its troubled British Midland International subsidiary.

Lufthansa has agreed to sell the lossmaking airline to British Airways’ parent company, International Airlines Group. The deal has yet to receive regulatory approval.

Lufthansa’s 2011 revenue rose 8 percent to euro28.7 billion.

Higher fuel costs and new air traffic taxes in Germany and Austria caused contribution of Lufthansa’s passenger business to the company’s overall 2011 operating profit to fall by 44.5 percent from euro629 million to euro361 million because of .

Lufthansa subsidiary Austrian Airlines’ revenue stayed flat at just more than euro2 billion and it registered another full-year operating loss, this year of euro62 million.

The Cologne-based company’s subsidiary Swiss Air, in turn, saw revenues climb by 14 percent to euro4 billion in 2011, while operating profit fell slightly from euro298 million to euro259 million.

Lufthansa does not publish separate fourth-quarter figures.

The company also holds stakes in Brussels Airlines and JetBlue of the United States.

Lufthansa shares slid about 1.5 percent to euro10.36 in early trading in Germany.

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The Federal Reserve on Tuesday provided few clues on the prospects for further monetary easing, offering just a slight upgrade to its economic outlook while restating concerns about the high level of unemployment.

The central bank said it expects “moderate” growth over coming quarters with the unemployment rate declining gradually; in January, it said it expected “modest” growth.

It also said a recent spike in energy costs would likely push up inflation, but only temporarily. Over a longer stretch, the Fed said inflation would likely run at or below the its 2 percent target.

“Labor market conditions have improved further; the unemployment rate has declined notably in recent months but remains elevated,” the central bank said in a statement after a one-day meeting.

U.S. stocks held gains, the dollar hit a fresh 11-month high against the yen and prices for U.S. government bonds slipped after the statement was released.

“They recognize employment is getting better but still has room to improve and inflation may be a little higher … but longer term inflation is to remain stable,” said Greg Michalowski, chief currency analyst at FXDD in New York.

As widely expected, the Fed reiterated its expectation that overnight interest rates would remain near zero until at least through late 2014 and that it would continue its program to reweight its portfolio toward longer-term securities. That program, known as “Operation Twist,” expires at the end of June.

Richmond Federal Reserve Bank President Jeffrey Lacker dissented against the decision because he did not expect economic conditions to warrant ultra-low rates until late 2014. In January, he had dissented against the decision to offer a time frame for the first expected rate hike.

The Fed cut overnight interest rates to near zero in December 2008 and has bought $2.3 trillion in bonds to boost growth. Financial markets are trying to gauge whether policymakers may take fresh steps to stimulate the economy in coming months.

EASING AHEAD?

A quickening in the pace of jobs growth and a sharp drop in the unemployment rate to 8.3 percent from 9.1 percent in August has led some analysts to rein in their expectations for a further easing of monetary policy.

A report on Tuesday showed retail sales posted their largest gain in five months in February, the latest data to suggest the economic recovery is on a more solid footing.

Even so, Fed officials are uncertain whether the progress reducing unemployment can be maintained given still-sluggish economic growth, and many economists believe the central bank will launch another round of bond buying later in the year.

In a poll on Friday of firms that trade directly with the Fed, 14 of 18 economists anticipated further quantitative easing. That survey was taken after the government said the economy created more than 200,000 jobs for the third month running in February.

Analysts are looking to the Fed’s two-day meetings in April and June for decisions about any new directions for policy. At both meetings, Bernanke will hold a news conference and officials will make public updated economic and interest rate projections.

Most economists think the economy will expand at about a 2 percent annual rate in the first quarter. Fed Chairman Ben Bernanke said in January it would normally take a growth pace of between 2 percent and 2.5 percent just to hold the jobless rate steady.

While the economic recovery is nearly three years old, officials lament that the United States is still far from full employment. Although the jobless rate has fallen significantly over the last six months, it remains stubbornly high.

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India

Natural gas prices fell Thursday after spring-like weather blanketed much of the country, raising expectations that demand will remain weak. At the same time, supplies have stayed well above year-ago levels.

The amount of natural gas in storage in the U.S. fell 80 billion cubic feet to 2.433 trillion cubic feet last week. That figure is 48.3 percent more than the five-year average, the Energy Department said. Analysts had expected a decline between 82 billion cubic feet and 86 billion cubic feet, according to a survey by Platts, the energy information arm of McGraw-Hill.

Natural gas fell 3 cents to finish at $2.27 per 1,000 cubic feet in New York. The price has fallen about 27 percent this year and is at the lowest level in a decade.

Oil, meanwhile, moved closer to $107 per barrel as traders continued to be concerned about tensions between Israel, the U.S. and Iran.

Natural gas stockpiles have expanded steadily this year as consumers and business owners have kept thermostats at lower temperatures during a mild winter. About a quarter of the nation’s electricity is generated using natural gas.

At the same time, production is booming because energy companies are accessing underground reserves using newer drilling techniques. Chesapeake Energy Corp. and other producers already have said that they will reduce production because of the low price.

Some analysts speculate that the price could fall to $2 per 1,000 cubic feet or even lower if demand doesn’t pick up significantly when air conditioners are turned on for the summer.

“The bottom line is that there is too much natural gas in storage and temperatures are unlikely to help in the near term,” Cameron Hanover analysts stated in a research report.

Energy consultant Jim Ritterbusch thinks more producers will announce voluntary production cutbacks before the price falls too much lower faxless payday advance. He’s forecasting a range of $2.15 per 1,000 cubic feet to $2.20 per 1,000 cubic feet.

In other trading, oil prices rose because of developments in the Middle East and Europe.

Tension over Iran’s nuclear program is a big reason that oil prices have risen about 14 percent in a little more than four months. On Thursday an Israeli official claimed satellite images back Israel’s contention that Iran is developing a nuclear weapon.

Oil prices also got support from signs that a $140 billion bond swap deal to restructure Greece’s debt will succeed. That would keep the country from defaulting on a massive amount of debt and benefit the European economy. The results of the exchange are expected to be announced early Friday.

That development overshadowed a report from the U.S. Labor Department showing that the number of people seeking unemployment benefits rose slightly more than expected last week.

Benchmark crude rose 42 cents to end at $106.58 per barrel in New York. Heating oil rose 5 cents to finish at $3.27 per gallon and gasoline futures increased 3 cents to end at $3.31 per gallon.

Brent crude, used to price foreign crude imported by many U.S. refiners to make gasoline, rose $1.32 to finish at $125.44 a barrel in London.

At the pump, the national average for retail gas fell 0.3 cent overnight to $3.758 a gallon, according to AAA, Wright Express and the Oil Price Information Service. The price is about 28 cents more than a month ago and about 23 cents more than a year ago.

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Fuel delivery truckers have ended a three-day strike that emptied many gas stations in South America’s biggest city, union officials said Thursday.

Drivers started delivering fuel to the city’s 2,000 gas stations Wednesday night under police escort, said Claudio Ferreira, a spokesman for the Sao Paulo truck drivers union.

The union requested police protection from “nonunion individuals who threatened to damage trucks and attack drivers,” Ferreira said, adding that service stations are expected to be operating normally within three to seven days.

The strike began Monday to protest the city government’s attempt to restrict where big trucks can drive.

The truck drivers union said transportation costs and travel times will increase because of the restrictions that limit the hours truckers can use some city highways and force trucks to take alternative routes.

On Tuesday a judge ruled that unions would be fined one million reals ($565,000) a day during the duration of the strike.

The Sao Paulo metropolitan area, with 20 million people, is one of the world’s most congested urban centers and is infamous for its clogged roads. The city has more than 7 million cars and more than 5 million people use the public bus system, all of which were in danger of grinding to a halt if gasoline supplies were cut off.

Sao Paulo’s Consumer Protection and Defense Department said that the agency has received more than 200 reports of gas stations upping pump prices by more than 20 percent since the strike started.

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Australia

SHAQ SHOW: When the Washington University Executive MBA Class left for its global experience in Shanghai last Friday, the group’s flight partner on American Airlines was none other than 7′1″ former NBA star, Shaquille O’Neal.

According to Forbes magazine, O’Neal markets his Dunkman shoe brand in China and visits Shanghai and Beijing annually to tour malls and do interviews.

Joanne Carden, a class member who works for Monsanto, sat across the aisle from Shaq and his entourage for the 14-hour flight. The Olin business school class of 31 students and executives will be in Shanghai for a minimum of eight days as part of the program’s global strategy curriculum.

While there the group will attend classes at Fudan University with Olin’s Shanghai-based students, visit the U.S. Consulate, the local plant of cell phone manufacturer HTC and Caterpillar, which is located in nearby Suzhou.

The class will graduate from the 20-month program on May 5.

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President Barack Obama says vehicle fuel economy standards set under his administration and better cars built by a resurgent U.S. auto industry will save money at the gas pump over the long term, a counterpoint to Republican criticism of his energy policy.

In his weekly radio and online address Saturday, Obama said Detroit automakers are on track to build cars that average nearly 55 miles per gallon by 2025, doubling current mileage standards.

“That means folks will be able to fill up every two weeks instead of every week, saving the typical family more than $8,000 at the pump over time,” he said. “That’s a big deal, especially as families are yet again feeling the pinch from rising gas prices.”

During the past several weeks, Obama has been eager to appear aggressive in the face of rising gasoline prices even as he reminds audiences that there is no simple, immediate solution that will reverse the current spike in prices.

“What’s happening in Detroit will make a difference. But it won’t solve everything,” Obama said. “There’s no silver bullet for avoiding spikes in gas prices every year.”

By drawing attention to the auto industry, Obama looked to highlight both his efforts to improve fuel efficiency as well as his role in helping rescue General Motors and Chrysler. He also reiterated his call to end oil and gas company tax breaks and government subsidies that average about $4 billion a year.

Rising oil prices have become a concern at the White House, where Obama aides worry they could hurt an economic recovery that has been improving and also harm the president’s re-election prospects.

Oil prices typical rise in the spring, but they have spiked to heights unseen at this this time of year, hastened by increased tensions over Iran’s nuclear program. Gasoline prices reached $3.74 a gallon on Friday, a record at this point in the calendar but still shy of the high point of $4.11 hit in July 2008.

In Saturday’s Republican address, Rep. Doc Hastings of Washington said a meeting this week among Obama and House and Senate leaders from both parties “provided a glimmer of new hope that the president and the Democratic-controlled Senate may finally act on some bipartisan energy bills” already passed by the Republican-controlled House.

Still, Hastings, the chairman of the House Natural Resources Committee, faulted Obama for not doing more to increase domestic oil and gas production, for opposing drilling on the Arctic National Wildlife Refuge, for blocking a Canada-to-Texas oil pipeline and for imposing regulations on energy producers.

“The president, who campaigned on a promise to address rising gas prices, now talks as if they’re largely beyond his control,” Hastings said.

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A proposal to consolidate the St. Louis office of the National Labor Relations Board is drawing fire from area organized labor officials who fear the plan will curtail one of the busiest regional mediation agencies in the nation.

The NLRB in a memo sent last week said it is considering a pilot program that would merge the Kansas City and St. Louis regional offices.

If approved, the consolidation would place NLRB employees in St. Louis under the leadership of a regional director headquartered in Kansas City. The St. Louis regional director post is currently vacant.

The plan would also shift jurisdiction over Peoria and central Illinois from Region 14 (St. Louis) to the NLRB regional office in Indianapolis.

“I just don’t understand this move,” said Dave Morton, the director of organizing for UNITE Local 74, which represents the area’s restaurant, hotel and casino workers. “The regional director is supposed to have a role in the community and not having (a regional director) in an area with dense union participation is ridiculous.”

The NLRB stressed that “no offices will be closed.”

Officials representing St. Louis carpenters, electrical, sheet metal, transportation, communication and other trades are skeptical.

“The plan would create greater inefficiency, deprive our clients of services, and hinder outreach,” the union leaders wrote in a letter sent to NLRB headquarters in Washington, D.C., on Thursday. “In time, it would likely lead to the St. Louis office shrinking, which would hurt the (NLRB) as a whole, the staff in St. Louis, and our clients even more.”

Citing NLRB data, the area labor organizations said the St. Louis office received 800 cases in 2011, ranking it 15th among the 32 regions spread across the country.

Kansas City – which considers work-related issues filed in western Missouri, Kansas, Oklahoma and most of Nebraska – ranked 32nd with only 375 cases.

“A Region like St. Louis, which handles more priority cases, needs its own Regional Director,” the letter said.

A regional director assigned strictly to St. Louis rather than across the state “makes far more sense,” the letter continues, because he or she “knows the unions, knows the employers and knows the area.”

As presently structured, the St. Louis NLRB office has 21 full-time employees and two college interns. An additional nine to 10 agency employees work out of the Region 14 office in Peoria, Ill.

The NLRB promised to “thoroughly consider input” from its field offices, the “management-labor relations community” and Congress before implementing the program.

A final decision on the consolidation plan is expected in early April.

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