AT&T selling earlier iPhone for $49 – with conditions

AT&T Inc. will start selling the previous-generation iPhone — the iPhone 3GS — for $49 starting today to customers who buy the smart phone with a two-year service contract and data plan.

The wireless company, which is the exclusive U.S. carrier for the iPhone, made the announcement Thursday. AT&T said it will include iPhone 3GS devices sold through AT&T and Apple.

The iPhone 3GS was released by Cupertino, Calif.-based Apple Inc. in 2009 and had been sold for $99 by AT&T and Apple since the release of the iPhone 4 last June. It can use the same iOS4 software as the iPhone 4.

Eurozone retail sales fall despite belief they’d rise

Retail sales in the 16 countries that used the euro in November unexpectedly fell, official figures showed Thursday, in another sign that consumers remain reluctant to spend amid ongoing worries about the level of debt in several countries.

Eurostat, the EU’s statistics office, said Thursday that eurozone retail sales fell 0.8 percent in November from the previous month, and revised down its estimate for spending in October. Now it thinks that retail sales were stagnant during the month instead of its previous prediction of 0.5 percent growth.

November’s sizable decline was unexpected; the expectation in the markets was that retail sales would rise, albeit by a modest 0.2 percent. It also meant that the year-on-year increase slipped to 0.1 percent in November from the previous month’s 1.2 percent.

Fixed mortgage rates drop after two-month increase

Rates on fixed mortgages dipped this week after rising steadily over the last two months.

Freddie Mac said Thursday the average rate on the 30-year mortgage dropped to 4.77 percent from 4.86 percent the previous week. It hit a 40-year low of 4.17 percent in November.

The average rate on the 15-year loan slipped to 4.13 percent from 4.20 percent. It reached 3.57 percent in November, the lowest level on records starting in 1991.

Airlines anticipating snow waive some rebooking fees

With more snow forecast for the Northeast this weekend, major U.S. airlines hit hard by a December blizzard are warning of delays and cancellations and waiving the usual fees to change flights.

American, United and Continental all say there could be travel disruptions at large airports such as Newark, LaGuardia and JFK in the New York City area. The National Weather Service has issued winter storm watches from eastern Pennsylvania to Vermont.

AMR Corp.’s American said Thursday that customers scheduled to fly to, from or through 14 airports in New York, New Jersey, Pennsylvania, Connecticut and Massachusetts on Saturday or Sunday can change their itinerary without paying the usual $150 rebooking fee if they begin their rescheduled trip no later than Monday.

United and Continental, owned by United Continental Holdings Inc., made a similar announcement covering travel at 14 airports in the Northeast between today and Monday. They also normally charge $150 to change a domestic booking but will waive the fee and any difference in fare if the rescheduled trip starts by Jan. 23.

Geithner outlines dangers of not raising debt limit

Treasury Secretary Timothy Geithner warned congressional leaders Thursday that the government could reach its $14.3 trillion borrowing limit by spring and failure to raise it could affect millions of American jobs.

The government will reach the limit between March 31 and May 16, Geithner said in a letter. Inaction, he noted, could drive up interest rates.

Republicans are vowing to block an increase in the debt limit.