Business 2006-08-02

There could be more financial turbulence（金融动荡，市场动荡） ahead for Northwest Airlines. Gerri Willis is live in New York with more on that story, and also a wrap-up of today's trading. Hi, Gerri.

Hi, there, Melissa, good to see you, stocks fell today as the spectre of further interest hike spooked investors 1, prompting a bout 2 of selling（造成了一轮抛售）, another economic report showed that inflation is taking higher and that sets off new worries about what the Federal Reserve might do when it meets next week. Taking a look at the closing numbers, the Dow Industrials dropped 59 points as you can see right here, The NASQAQ slipped 29 points. Crude oil prices, meanwhile, continued to climb, oil closed up 51 cents, settling at 74.91 a barrel. And there is more trouble looming 3 for Northwest Airlines, flight attendants（飞机上服务人员） for the bankrupt carrier say they have given the company notice that a 15-day count-down（最后15天期限） towards a possible strike has begun. The move comes after Northwest flight attendants rejected a wage cutting contract for the second time. A walkout（罢工=strike） would be Northwest's second strike in less than a year. The embattled(被敌人围困的，四面受敌的) airline mechanics went on（进行） strike a year ago after they refused to accept pay cuts. But the company hired replacement 4 workers（替代员工，补充兵员）and flight operations were not disrupted that much. However, analysts 5 say a strike by thousands of flight attendants could have a bigger impact. A spokesperson for Northwest maintains that a strike by the flight attendants will be illegal under the Railway Labor 6 Act. Northwest flight attendants said they are the last of the company's unions without a wage cutting contract, Melissa.

Gerri, I know you don't have a crystal ball（占卜用的水晶球，预言未来的方法）, but combine bankruptcy 7 and a strike, could that be fatal for Northwest?

Oh, many experts fear that it could be fatal, Melissa. Passengers do not want to be inconvenienced, and so if there are disruptions, the airline could lose loyal customers. One transportation expert says a strike could poison customers' attitudes towards the airline. Meanwhile, Northwest wants to save 1.4 billion dollars in labor cost as it reorganizes under chapter 11, and none of the agreements it has with other unions go into effect until all the unions agree to cost cutting plans.

Turning now to the auto 8 industry, the big 3 US car makers 9 reported their July sales today; the numbers don't paint a pretty picture. General Motors saw its 6 straight monthly decline. Sales of GM fell 23% compared to the same period last year when buyers took advantage of big discount programs. Meanwhile, Ford 10's sales tumbled 34% as rising gas prices hurt demand for SUVs(越野车) and pick-up trucks（皮卡）. And sales of Chrysler dropped 37%, US automakers saw very strong sales last summer you may remember. Thanks to aggressive incentive 11 plans（主动的刺激消费计划） which made for tough comparisons this year. Melissa.

Let's talk about this year, any really good incentive plans to look forward to?

Well, Ford's latest incentive plan has actually hit the end of the road. Its Drive-On-Us campaign with 0% financing and up to 5000 dollars in cash rebates（折扣=discount）on selected models was over yesterday. Now Ford is shifting to regional promotions 13 in order to clear its 2006 inventory 14. The automaker also plans to lower prices and introduce fresh designs to kick start sales of its 2007 models. The new lineup（阵容，系列） includes an updated version of the expedition SUV. Meanwhile, Chrysler is extending its employee discount program on most of its 2006 models. That promotion 12 was meant to expire yesterday but the automaker is extending it after Labor Day.

【WORLD BANK】
tumble
To drop:
Prices tumbled.
Chrysler
克莱斯勒汽车
kick start
to do something to help a process or activity start or develop more quickly
He urged further interest rate cuts in a bid to kick-start the economy.
Chapter 11
Chapter 11 is a chapter of the United States Bankruptcy Code which governs the process of reorganization under the bankruptcy laws of the United States. (The Bankruptcy Code itself is Title 11 of the United States Code; therefore reorganization under bankruptcy is covered by Chapter 11 of Title 11 of the United States Code.) In contrast, Chapter 7 governs the process of a liquidation 15 bankruptcy.)
Chapter 11 is typically used for business bankruptcies 16 and restructuring. It is not commonly used by individual consumers since it is far more complex and expensive to pursue. It allows businesses to reorganize themselves, giving them an opportunity to restructure debt and get out from under certain burdensome leases and contracts. Typically a business is allowed to continue to operate while it is in Chapter 11, although it does so under the supervision 17 of the Bankruptcy Court and its appointees.