Business Briefing

30-year fixed rates edge up

The average rate on a 30-year fixed mortgage edged up to 4.96% this week from 4.95% a week earlier, mortgage finance company Freddie Mac said.

The average rate on a 15-year fixed-rate mortgage was 4.33%, up from 4.32% last week. Rates on five-year, adjustable-rate mortgages averaged 4.09%, up from 4.05%. One-year adjustable-rate mortgages fell to 4.12% from 4.22%.

The rates do not include add-on fees known as points. One point is equal to 1% of the total loan amount.

COURTS

Cities sue over ballot measure

San Francisco and six other California municipalities filed a lawsuit to block a PG&E Corp.-funded ballot measure, claiming it was intended to lock in the company’s control of electricity services.

The measure, Proposition 16, would impose a new super-majority vote threshold before cities could pursue virtually any new energy service program to benefit customers or the environment, San Francisco City Atty. Dennis Herrera said.

The suit seeks to disqualify Proposition 16 from the June 8 state election.

PATENTS

Firms settle ink dispute with HP

Hewlett Packard Co. said it reached a settlement with companies that were accused of infringing the printer company’s patents for ink cartridges.

HP filed a complaint with the U.S. International Trade Commission in September, seeking to ban imports of ink cartridges by 11 companies.

Two of those companies, InkPlusToner.com of Canoga Park and Comptree Inc. of City of Industry, have agreed to stop the imports and paid HP an undisclosed sum. HP expects to reach a similar agreement with Smartone Services of Hayward, Calif.

EARNINGS

FedEx profit jumps sharply

FedEx Corp. said quarterly profit more than doubled on increased shipments in Asia and Europe as the global economy improves.

Net income for the three months that ended Feb. 28 climbed to $239 million, or 76 cents a share, from $97 million, or 31 cents, a year earlier, the Memphis, Tenn., company said. Revenue rose 6.9% to $8.7 billion.

TELECOM

Palm struggles to woo customers

Palm Inc. reported sales figures that showed it was having a difficult time getting consumers to pay attention to its phones in a market dominated by iPhones and BlackBerrys.

The company shipped 960,000 smart phones to stores and distributors in the quarter that ended Feb. 26, 23% more than in the previous quarter. However, consumers bought only 408,000, down 29%.

By comparison, Apple sold 8.7 million iPhones in its most recent quarter.

AIRLINES

American is fined $300,000

Federal regulators have hit American Airlines with $300,000 in new penalties over maintenance issues.

The Federal Aviation Administration said American’s mechanics put off maintenance last year on a part designed to ensure that pilots get accurate readings on speed.

-- times wire reports