Here are the headlines from Tuesday's Bloomberg Market Report.
The proposed merger of U.S. Airways and American Airlines will mean higher fares and less service in smaller communities, according to consumer advocates who testified at a Senate hearing on the deal. Meanwhile, the CEO's of both airlines said fares would be kept in check by competition from smaller airlines. The merger is projected to add up to $1 billion in savings each year.
An industry trade group says U.S. Airlines helped reduce the national trade deficit by $5 billion. Airlines from American says that's thanks to carriers exporting nearly $40 billion in air travel services last year, which is an all-time high.
A group of prominent doctors is urging the FDA to reduce the amount of caffeine in energy drinks because of potential health risks. In a letter, received Tuesday by the agency, the physicians say energy drinks shouldn't be allowed to have more caffeine than soda.
