Business news with words aircraft+department+equipment. 2 news.

A controversial scheme for American aid to help its southern neighbour fight drugs looks useful but underwhelming THE idea was first mooted at a meeting near Merida last March between Mexico's president, Felipe Calderon, and George Bush. Months of negotiations culminated in weeks of leaks, mainly from American officials. But for such a well-rehearsed exercise, the announcement when it finally came was oddly low-key. On October 22nd both governments said that in an early-morning telephone call the two presidents had agreed on a plan under which the United States will provide Mexico with $1.4 billion in aid over the next three years to fight drug traffickers. Patricia Espinosa, Mexico's foreign minister, said the largest single chunk of an initial $500m would be spent on aircraft--mostly transport planes, she said, although in Washington, the State Department talked of surveillance aircraft and helicopters. There will also be scanning equipment at the border, and new communications systems, training and technical advice for Mexican police, including help on a witness-protection programme. And the United States will also give $50m in anti-drug aid to the Central American countries.

WASHINGTON (MarketWatch) - Orders for durable goods plunged 4.9% in August after a 6.1% gain in July, the Commerce Department reported Wednesday, as bookings for new aircraft see-sawed lower. It was the biggest decline since January. Excluding the 11.2% drop in transportation goods orders, new orders fell 1.8% in August after a 3.4% gain in July. Shipments of durable goods fell 1.6% in August, the biggest decline in 11 months. New orders were soft across the board, reversing the universal strength seen in July's report. Businesses reduced their orders for capital equipment from U.S. factories in August by 0.7%, another sign that capital spending and exports may not be strong enough to offset weakness in other areas of the economy.