BRIEFCASE BETTER ECONOMY EXPECTED IN 2004.

Byline: - Staff and Wire Services

LONG BEACH - Southern California's economic engine will begin to power up later this year and will gain steam in early 2004, according to a university forecast. But one of the most important components will continue to lag: jobs.

Authors of the ninth annual Regional Economic Forecast to be released today by California State University, Long Beach, expect significant improvement in the region's economy by early 2004, but sluggish employment growth.

California State University, Northridge, forecasters released similar findings in their own economic report Wednesday.

Feds widen probe of Gateway Inc.

SAN DIEGO - The Justice Department has opened a preliminary investigation of Gateway Inc.'s financial reports for 2000, dealing with the same questions raised in an ongoing, two-year probe by the Securities and Exchange Commission, company officials said Wednesday.

The personal computer maker wouldn't discuss details of the investigation.

Microsoft copies Sony's price cut

Microsoft Corp. representatives, speaking Wednesday at the Electronic Entertainment Expo in Los Angeles, said the company has cut the price of its Xbox video game console by $20 to $179.99 in the United States after Sony's identical retail reduction for PlayStation 2.

Sony Computer Entertainment of America had announced its discount Tuesday on current units of PlayStation 2 at select outlets to clear stocks.

In June or July, Sony plans to begin selling the gaming console in a package with an Internet adapter, which was previously available only separately for $39.99.

Once the items are packaged together, Sony representatives said the company will reinstate the $199.99 price for PlayStation 2.

Southwest lines flying in the black

DALLAS - Southwest Airlines, the only major U.S. carrier to remain profitable the past two years, expects to continue in the black this year, chief executive James F. Parker said Wednesday.

During the annual shareholder meeting, Parker also announced that Southwest, bucking the shrinking-schedules trend at other carriers, will add flights and expects to raise some fares this summer.

3,100 attendants to lose their jobs

FORT WORTH, Texas - American Airlines will lay off more than 3,100 flight attendants on July 1 as part of recently approved labor concessions. The announcement late Wednesday was expected.

American said recently that it sent layoff notices to 5,000 flight attendants late last month, warning that they could be laid off as early as July 1. About one-third of the attendants were based in St. Louis and had worked for Trans World Airlines, which American's parent company bought in 2001.

The number of layoffs among flight attendants was larger than the 2,400 cuts required under the new contract - approved last month as American teetered on bankruptcy. Company officials have said the additional layoffs were necessary because some employees had returned from voluntary leaves of absence, swelling the work force.

American also plans to trim 2,200 pilots and 1,200 ground workers. The first pilots are expected to receive layoff notices on June 1.