Euro Reaches New High
The euro broke its all-time high against the U.S. dollar this morning in Tokyo, reaching $1.1885, up from $1.1814 late Monday. The euro previously peaked at $1.1884 on Jan. 4, 1999, three days after its launch. The dollar has slid rapidly against the European currency in the past two weeks after remarks by Treasury Secretary John W. Snow that markets interpreted to mean Washington was happy to see the dollar fall. Snow's remarks sped a 16-month dollar slide caused by investor disenchantment with the prospects for the U.S. economy and stock market.</br></br>German business confidence rose in May from a 16-month low, a survey of 7,000 executives showed, reducing the risk that Europe's largest economy will slip into its second recession in as many years. The Munich-based Ifo economic institute said its index for western German sentiment rose to 87.6, from 86.6 in April, its lowest reading since December 2001. Economists had expected a decline. Germany's $2.4 trillion economy contracted in the first quarter.</br></br>Wal-Mart, the world's largest retailer, said May sales at U.S. stores open at least a year are within its forecast for a gain of 1 to 3 percent.</br></br>Hong Kong airport managers, hoping to restore air traffic devastated by the SARS outbreak, unveiled a $12.8 million package of lower landing fees and other incentives. Airlines that restore services can pay half the regular landing fee on flights that are 20 percent full or less. Flights that were not canceled can get discounts if they boost passenger numbers.</br></br>Swiss International Air Lines may cut as much as 41 percent of its 112-plane fleet to slash costs amid dwindling travel, a spokesman said. The airline, which has cut 10 percent of its workforce this year, plans to finish a new business plan by the end of June.