Business memo 09/16/02

Purchases of new cars, furniture up in August

WASHINGTON -- Consumers stepped up their purchases of new cars, furniture and other goods in August, pushing retail sales up for a third straight month, the Commerce Department said Friday in a report that eased fears the country was in danger of slipping back into a recession.

In other good economic news, inflation at the wholesale level remained a no-show with declines in the cost of food, new cars and computers helping to offset the biggest jump in energy prices since April.

Net worth of 400 richest people declines again

NEW YORK -- The rich are getting less rich in America.

For the second straight year but only the fourth time in 20 years of rankings, the combined net worth of Forbes magazine's 400 wealthiest Americans declined this year, reflecting the economy's continuing troubles.

Their total net worth of $872 billion was down from $946 billion in 2001 and $1.2 trillion in 2000.

Even the benchmark for being ranked dropped. The 2002 survey included individuals with a minimum net worth of $550 million -- down from the required $600 million in 2001.

The top 10 remained the same, with some reshuffling of the order.

French government to rescue France Telecom

PARIS -- Calling beleaguered France Telecom a symbol of French success, the government promised Friday a "very substantial" cash injection as part of a rescue plan to pull the telecommunications giant out of a black hole of debt.

The pledge from the government, France Telecom's majority shareholder, not to let the firm collapse followed the resignation Thursday of company chairman Michel Bon after seven years at the helm.

Compounding its woes, France Telecom on Friday announced nearly $12 billion in losses for the first half of the year and the end of a costly foray into Germany's mobile phone sector. The decision threatened 5,000 jobs at indebted German affiliate Mobilcom and provoked expressions of dismay from the German government.

-- From wire reports