Business digest 05/18/05

U.S. warns China about currency manipulation

WASHINGTON -- The Bush administration warned China on Tuesday that it could be cited as a currency manipulator and face economic sanctions unless it moves swiftly to overhaul its currency system. The administration has been prodding China in earnest over the last two years to stop linking its currency, the yuan, to the U.S. dollar. Manufacturers and other critics contend that China's currency system puts U.S. companies at a big competitive disadvantage. In China, central bank governor Zhou Xiaochuan said no one should expect quick action.

Saudis say kingdom can meet demand for years

WASHINGTON -- Saudi Arabia's oil minister said Tuesday that the kingdom has enough oil in the ground to meet global demand for decades to come and that there is no plan to curb daily output, even as rising inventories help ease prices below $50 a barrel. Ali Naimi said the world's largest petroleum exporter will not reach peak output anytime soon and that it is in Saudi Arabia's financial interest to try to bring down high prices, which hinder economic growth and sap demand. While prices have fallen from above $58 a barrel early last month, light, sweet crude for June delivery rose 36 cents on Tuesday to settle at $48.97 a barrel on the New York Mercantile Exchange.

J.C. Penney earnings beat expectations handily

NEW YORK -- J.C. Penney Co. Inc. continues to sparkle while the competing department stores of retailer Saks Inc. are languishing. Penney, helped by strong sales of spring merchandise and its online business, reported a fourfold rise in first-quarter earnings on Tuesday that beat estimates. It also forecast higher profits for the year. Saks, which is selling its mid-level Proffitt's and McRae's department stores, reported lower-than-expected profits for the first quarter.