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Pakistan's central bank may increase its benchmark interest rate for an eighth time since 2005 after inflation accelerated to a 30-year high.

State Bank of Pakistan will raise its discount rate by 1 percentage point to 13 percent, according to six out of seven analysts in a Bloomberg News survey. One expects an increase to 13.5 percent. The policy statement is due today at about 4 p.m. local time in Karachi.

“Inflation seems to be heading toward an all-time high,'' said Suleman Akhtar, an economist at Foundation Securities Ltd. in Karachi. “The central bank and the government will do everything to reduce inflation. The impact of current oil prices and high commodity prices pose a challenge.''

Central banks across Asia are raising borrowing costs as soaring food and energy prices stoke inflation and spark protests from the region's poor. Higher rates in Pakistan may further weaken South Asia's second-largest economy, where last year's growth of 5.8 percent was the slowest since 2003.

Consumer prices in Pakistan jumped 21.53 percent in June from a year earlier, after gaining 19.27 percent in May. The central bank aims to keep average inflation at 12 percent this fiscal year, the same as the previous 12-month period.

Inflation may accelerate further after the government raised domestic fuel prices by as much as 15.2 percent on July 21, the sixth increase in five months, in line with global oil costs. Crude reached a record $147.27 a barrel on July 11.

Unexpected Move

Governor Shamshad Akhtar unexpectedly increased the benchmark rate by 1.5 percentage points to 12 percent on May 23, also raising the cash reserve requirement for commercial lenders to 9 percent of deposits from 8 percent.

Central banks in Indonesia, Thailand and the Philippines have all increased interest rates in the past month. Neighboring India is today expected to raised its benchmark repurchase rate for a third time in less than two months to 8.75 percent, according to 16 of 22 economists in a Bloomberg News survey.

Pakistan's central bank in June said government borrowing from the State Bank, estimated at 9 percent of gross domestic product last fiscal year, “cannot be sustained'' without further stoking inflation.

The budget deficit reached a 10-year high of about 7 percent of GDP in the 12 months to June 30, according to Finance Minister Naveed Qamar. Pakistan's first civilian government since a 1999 military coup says it wants to narrow the gap to 4.7 percent of GDP next fiscal year.

Standard & Poor's and Moody's Investors Service in May cut their ratings on Pakistan's foreign-currency debt, citing rising budget and current-account deficits and political instability.

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Michael Fenley, a veteran of the East Bay retail scene, has been selected as the new general manager of Sunvalley shopping center in Concord.

Fenley, who has worked in shopping center management for 32 years, replaces Larry Beermann, who had served as general manager of the 41-year-old regional mall since early 2007. Beermann had a relatively short tenure compared with his predecessor, Tom McCracken, who served in Sunvalley's top post for more than 20 years.

To take the Sunvalley job, Fenley leaves the general manager position at Stoneridge shopping center in Pleasanton, which he had held since last fall. He has previously worked as general manager of the Bay Street mixed-use project in Emeryville for about a year and as general manager of Hilltop mall in Richmond for eight years.

A spokeswoman for Stoneridge could not be reach for comment on whether that upscale mall, owned by Simon Properties Inc., the nation's largest shopping center operator based in Indianapolis, has found a replacement for Fenley.

His appointment at Sunvalley marks Fenley's return to Taubman Centers Inc. of Bloomfield Hills, Mich., which used to own Hilltop and Stoneridge.

Sunvalley has more than 160 stores, anchored by two Macy's stores, as well as Sears and JCPenney.

Swiss National Bank Governing Board member Thomas Jordan said the bank would raise borrowing costs if it saw the risk of a wage-price spiral developing, NZZ am Sonntag reported, citing an interview.

Unions “must be aware'' that trying to compensate for “unpleasantly high'' inflation by increasing salaries would fuel inflation, Jordan is quoted as saying in the interview.

Jordan said interest rates don't need to be changed for now because inflation is likely to drop below the bank's 2 percent limit, assuming oil prices stabilize, Jordan told NZZ am Sonntag.

Slowing growth is also likely to damp inflation, he said. The SNB expects to see a “distinct slowdown'' rather than a recession in Switzerland, Jordan is quoted as saying. Overall growth is likely to be 1.5 percent to 2 percent in 2008 and recover in the course of 2009, Jordan said.

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Two metro Atlanta men are heading to prison and another is on probation for importing and selling more than $2 million of counterfeit sports jerseys on eBay.com.

Zachary Hurley, 28, and Jonathan Portwood, 26, of Atlanta, and Stephen Piwowar, 46, of Marietta, Ga., were sentenced Monday by U.S. District Judge Beverly B. Martin on charges of conspiracy to traffic in counterfeit goods. Hurley was further sentenced on a substantive charge of importing and trafficking counterfeit goods.

Hurley established a contact to get counterfeit sports jerseys while stationed with the U.S. Army in South Korea, according to the case. After returning to the United States, Hurley recruited others, including Portwood and Piwowar, to sell the counterfeit sports jerseys he would import. The group used eBay and PayPal accounts registered under a variety of names.

Hurley and his accomplices imported and sold tens of thousands of counterfeit NFL, NBA, and other jerseys, grossing more than $2.25 million.

In addition, authorities seized more than 22,000 counterfeit jerseys that Hurley imported and intended to sell and that had a retail price exceeding $2 million. Authorities later learned that even after his arrest, Hurley continued to import and sell counterfeit goods, in particular, counterfeit golf clubs, through another accomplice over eBay.

Hurley got 51 months in prison to be followed by three years of supervised release, was ordered to pay $381,651 in restitution and was forced to forfeit $650,000 in crime proceeds.

Portwood was sentenced to five years of probation with six months home confinement and 150 hours of community service, and was ordered to pay restitution in the amount of $165,426.

Piwowar was sentenced to 15 months in prison to be followed by two years of supervised release, and was ordered to pay $40,245 in restitution.

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Applera Corp.’s Applied Biosystems Group is the target of a $6.7 billion acquisition offer by Invitrogen Corp., the company said Thursday.

The offer, in cash and stock, would create a global leader in biotechnology research tools and supplies, with an estimated $3.5 billion in combined sales, the companies said.

The boards of directors of both companies have approved the agreement. If closed, the combination would create Applied Biosystems Inc., which would have its corporate headquarters in Carlsbad.

Applied Biosystems (NYSE: ABI), is based in Foster City and maintains a campus in Pleasanton as well. Invitrogen is based in Carlsbad.

The transaction is expected to close by fall 2008, subject to regulatory approvals and the completion of Applera’s Celera group — its Alameda operating group — splitting off from the company, which is due expected to occur July 1.

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Japan's factory production probably fell in April for a second month as the U.S. slowdown crimped world demand and higher energy costs cut into corporate profits. Inflation stayed near a decade high, economists said.

Output declined 0.5 percent from March, when it slid 3.4 percent, the biggest drop in five years, according to the median estimate of 35 economists surveyed by Bloomberg News. The Trade Ministry will release the report on May 30 at 8:50 a.m. in Tokyo.

Record oil and commodity prices are squeezing businesses and consumers in Asia, where demand has helped Japanese exporters withstand the U.S. slump. Higher costs and fewer sales may cause profits to fall this year for the first time since 2001, prompting companies to pare spending and restrain wages.

“The global economy is slowing but commodity prices are still going up. It's really damaging,'' said Hiroshi Shiraishi, an economist at Lehman Brothers in Tokyo. “Japan's biggest market is Asia. They're big importers of commodities, so they're getting hit just like Japan.''

Analysts will look for clues about Japan's economic outlook in companies' forecasts for production in May and June. The Trade Ministry asks manufacturers about their production plans in the two months ahead. Companies said last month they expect May output to rise 3.4 percent.

“I think the projection is over-optimistic because the global environment is getting worse and worse,'' said Masamichi Adachi, senior economist at JPMorgan Chase & Co. in Tokyo.

BOJ's Shirakawa

Bank of Japan Governor Masaaki Shirakawa said yesterday that the outlook for the world's second-largest economy is “extremely uncertain'' because costlier oil and raw materials could squeeze companies and consumers as well as fan inflation.

Consumer-price inflation probably eased from the steepest rate in 10 years as the temporary expiry of a gasoline tax provided relief to consumers facing rising prices of bread, milk and beer.

Core prices, which exclude fresh fruit, fish and vegetables, climbed 1 percent in April from a year earlier, according to the median estimate of 35 economists surveyed. Prices rose 1.2 percent in March, the fastest pace since 1998. The statistics bureau will release the figures on May 30 at 8:30 a.m. in Tokyo.

The expiration of the gasoline tax lowered the average price of the fuel nationwide by about 17 percent in April, according to the Bank of Japan. The levy was reinstated this month, bringing regular gasoline prices to a record 160.1 yen a liter ($5.84 a gallon).

Oil Prices

“The gasoline tax temporarily dragged down core prices, but the effect of recent oil gains will defiantly appear in consumer-price data from May,'' said Mamoru Yamazaki, chief Japan economist at RBS Securities in Tokyo.

Crude oil exceeded $135 a barrel for the first time last week. Japanese companies' pretax profits will fall 5 percent in the year ending March 2009, ending seven years of growth, according to the Shinko Research Institute.

Higher commodity costs aren't all bad news for Japan's exporters. They're increasing the wealth of emerging and resource-producing countries, spurring demand for Japanese goods in those markets, Governor Shirakawa said. Export growth accelerated last month as demand in emerging markets made up for a slump in shipments to the U.S., Japan's largest market.

“We're not looking for a collapse in exports. We're basically expecting them to be held up by commodity-exporting countries,'' said Lehman's Shiraishi. “The economy's path is dependant on this balance between commodity prices and global growth. That balance isn't going in a favorable direction.''

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Hoping to blunt the potential effects of inflation and a slowing economy, Six Flags America has cut the cost of getting into the park in half.

The buy one, get one free offer is available for online ticket purchases. Regular adult admission is $49.99. The park is also cutting $10 off the price of a kid’s ticket, to $24.99 online.

Six Flags America, in Bowie, joins other Six Flags locations that have lowered admission prices through various promotions. With the price of gasoline around $4 a gallon, the company is hoping to appeal to people who have decided to stay close to home this summer.

"While families across America are feeling a strain on their wallets, they still want to have fun and spend time together this summer," said Chris Haenn, Six Flags America park president.

Attendance at Six Flags parks rose 19 percent last quarter from year-ago levels to 1.4 million visitors. First-quarter revenue was up 35 percent to $68.2 million. The company had a first-quarter net loss of $150 million, compared with a net loss of $170 million in the same quarter a year ago.

Six Flags Inc. (NYSE: SIX), controlled by Washington Redskins owner Dan Snyder, operates 21 theme parks across the country.

Barton Eckert contributed to this report.

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Hoping to blunt the potential effects of inflation and a slowing economy, Six Flags America has cut the cost of getting into the park in half.

The buy one, get one free offer is available for online ticket purchases. Regular adult admission is $49.99. The park is also cutting $10 off the price of a kid’s ticket, to $24.99 online.

Six Flags America, in Bowie, joins other Six Flags locations that have lowered admission prices through various promotions. With the price of gasoline around $4 a gallon, the company is hoping to appeal to people who have decided to stay close to home this summer.

"While families across America are feeling a strain on their wallets, they still want to have fun and spend time together this summer," said Chris Haenn, Six Flags America park president.

Attendance at Six Flags parks rose 19 percent last quarter from year-ago levels to 1.4 million visitors. First-quarter revenue was up 35 percent to $68.2 million. The company had a first-quarter net loss of $150 million, compared with a net loss of $170 million in the same quarter a year ago.

Six Flags Inc. (NYSE: SIX), controlled by Washington Redskins owner Dan Snyder, operates 21 theme parks across the country.

Barton Eckert contributed to this report.

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