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Senators OK tax credit WASHINGTON — Senators have agreed to extend a popular $8,000 tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers. It is set to expire at the end of November. A spokeswoman for Senate Majority Leader Harry Reid said senators agreed Wednesday to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years. A congressional aide said the tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes.
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China to study auto imports WASHINGTON — China has told the U.S. that it will take steps that could lead to higher tariffs on imports of autos made by GM, Chrysler and Ford. Steve Collins, president of industry trade group the American Automotive Policy Council, said Wednesday that U.S. officials have told the three companies that China is expected to begin an investigation into their business practices as soon as next week. If the investigation concludes that the companies receive government subsidies, or sell products in China at below-market prices, China could slap tariffs on U.S. auto imports. The move is the latest trade dispute between the two countries, which are already fighting over steel pipes, chicken products, and pirated movies and music.
US Airways plans cuts US Airways said Wednesday it will cut some 1,000 jobs next year, shift nearly all of its flying to its three hubs and Washington, and suspend several international routes. The retrenching is aimed at putting its airplanes where the money is — its hubs at Philadelphia, Phoenix, and Charlotte, N.C., as well as Washington. US Airways said flying from its hubs has been profitable. Once the changes are made early next year, 99 percent of its flying will be to or from those cities, up from 93 percent now. It’s also keeping its US Airways Shuttle between Boston, New York, and Washington. Wednesday’s changes include dropping Colorado Springs, Colo., which it said is too close to Denver to be profitable.
Continental adds partners NEW YORK — Continental Airlines Inc. said Wednesday it signed two new partnerships with airlines. Continental, based in Houston, signed deals with Japan’s largest domestic airline ANA (All Nippon Airways) and Asiana Airlines, based in Seoul, South Korea. The airlines will cooperate with Continental through code sharing, frequent flyer programs, and passenger lounge access. Code sharing allows passengers to book legs of a flight on different airlines with one ticket. Continental officially switched Tuesday from SkyTeam — led by Delta and Air France-KLM — to the Star Alliance, which includes United, US Airways and Lufthansa.
GM executive OK with pay cuts WASHINGTON — General Motors Co. CEO Fritz Henderson said Wednesday that government-imposed cuts to his own salary, and the pay of other executives at seven companies that received taxpayer money, were "fair” and "thoughtful.” Henderson was among executives whose base salaries will be slashed under a plan by Kenneth Feinberg, the Obama administration’s "pay czar.” Feinberg said last week he had ordered the seven companies to slash the base salaries of their top executives by an average of 90 percent and cut total compensation — cash, stock and
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