U.S. companies, China sign trade agreements

In a buying spree aimed at easing trade tensions with the United States, China signed contracts worth $1.7 billion on Wednesday with Boeing and General Electric to buy 30 Boeing 737 planes for five Chinese airlines. GE will supply the engines.

The announcements follow earlier word that Detroit’s Big Three automakers have reached trade pacts with China that would allow them to export thousands of vehicles and increase their stakes in a growing automotive market that eventually could become the world’s largest.

Rick Wagoner, above left, General Motors chairman and CEO; Ma Xiuhong, center, Chinese vice minister of commerce; and Gary Cowger, GM vice president of North America, inspect a new vehicle before signing the trade agreement.

Banking

Cap Fed profit declines

Topeka-based Capitol Federal Financial announced Wednesday that its earnings for the fiscal year dropped largely because of lower interest rates.

The banking company, which operates several branches in Lawrence, posted income of $52 million compared to $89.6 million a year ago. On a per share basis, profits fell to 72 cents per share from $1.22 per share.

The company, which is the largest residential lender in the state, blamed the decline on low interest rates that led many customers to refinance their higher rate mortgages into lower rate deals.

Shares of Capitol Federal dropped 60 cents Wednesday to close at $36.41.

Retail

Payless announces loss

Topeka-based Payless ShoeSource Inc. announced Wednesday that its business posted a loss in the third quarter compared to a profit a year ago.

The company, which is the largest U.S. shoe retailer, posted a loss of 3 cents per share compared to a profit of 43 cents per share a year earlier.

The retailer blamed aggressive markdown and higher inventories for its lower results.

Shares of Payless dropped 5 cents Wednesday to close at $13.20.

Wall Street

Ford credit rating drops

Credit ratings agency Standard & Poor’s on Wednesday lowered its long-term ratings on Ford Motor Co. to one notch above “junk” status, a decision the world’s second-largest automaker disputed.

S&P last month said it was reviewing whether to lower its long-term and short-term ratings for Ford, its financing arm and rental agency Hertz Corp., but said it was highly unlikely ratings would be lowered below investment-grade status, a key qualification demanded by some large institutional investors in corporate debt.