EU leaders OK reduced budget - Detroit Free Press

ECONOMY

European Union leaders agreed Friday to a significantly reduced 7-year budget worth 960 billion euros ($1.28 trillion) -- the first cut in spending in the 27-country group's history.

European Council President Herman Van Rompuy announced that the agreement had been reached after two days of nearly round-the-clock negotiations -- the longest negotiations of his tenure in office. The final total was about 40 billion euros less than the European Commission had originally proposed.

The issue of what to give to the EU was made more difficult because, he said, its members were struggling with poor economic growth and harsh austerity measures.

Wholesalers cut stockpiles slightly

U.S. wholesalers cut their stockpiles slightly in December while their sales were unchanged, suggesting businesses were cautious at the end of a weak quarter.

The Commerce Department said Friday that wholesale business stockpiles dipped 0.1% in December from November to $497.7 billion. That followed a 0.4% rise the previous month.

Inventories of furniture and automotive goods fell by the most in more than three years. Farm product stockpiles also dropped sharply, likely reflecting the impact of this past summer's drought in the Midwest.

AVIATION

Boeing warns of delays with 787

Boeing acknowledged Friday that it may not be able to deliver its 787 as fast as hoped.

The company said it has told customers expecting the next 787 deliveries that those planes have been delayed or are at risk for a delay. Boeing is still building the long-range, fuel-efficient planes, and it said Friday that it has no plans to slow production.

RESTAURANTS

McDonald's says global Jan. sales fell 1.9%

McDonald's says a key sales figure dropped again in January as the world's biggest hamburger chain faced ongoing weakness in Japan and sales in China were hurt by a food scare and the timing of a holiday.

The Oak Brook, Ill.-based company said global sales at restaurants open at least 13 months dropped 1.9% for the month. The figure is a key metric because it strips out the volatility of newly opened and closed locations.

After years of outperforming rivals, McDonald's has been struggling amid intensifying competition and challenging economic conditions around the world. Late last year, the company ousted the head of its U.S. business after the sales figure dropped for the first time in nearly a decade.

ENERGY

Rule on fake fireplaces is tossed out

Fake fireplaces do not need real rules on energy efficiency.

A federal appeals court on Friday threw out an Energy Department rule that could have forced decorative fireplaces to meet federal energy efficiency standards. The appliances, also known as gas logs, are fueled by natural gas but are designed to minimize the amount of heat generated.

A divided panel of the U.S. Court of Appeals for the District of Columbia said the Energy Department rule made no sense, since the appliances are purchased for their appearance rather than to heat homes or businesses.

Judge Janice Rogers Brown, writing a 2-1 opinion for the court, could not resist a little judicial humor as she poked at the Energy Department. "We hold DOE's feet to a not-so-decorative fire by vacating the rule in part" and ordering officials to come up with a new rule, Brown wrote.