US trade judge rules for Apple in Nokia dispute

Saturday, March 26, 2011 | 0 comments

AFP, WASHINGTON, MAR 27: A judge with the US International Trade Commission ruled in Apple's favor in a patent dispute with Finland's Nokia over mobile phones, portable music players and computers.

Judge James Gildea denied Nokia's claim that Apple had violated five patents held by the Finnish company.

The judge did not provide an explanation for his ruling and the full six-member commission now has 60 days to review his determination.

The ITC has the authority to bar imports into the United States of products found to be infringing on patents and Nokia was seeking to have Apple products barred.

The two mobile phone titans have been embroiled in a fierce legal battle over patents with Nokia lodging at least two other lawsuits against Apple and the California gadget-maker filing countersuits against the Finnish company.

US trade judge rules for Apple in Nokia dispute

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AFP, Washington, Mar 27: A judge with the US International Trade Commission ruled in Apple's favor in a patent dispute with Finland's Nokia over mobile phones, portable music players and computers.

Judge James Gildea denied Nokia's claim that Apple had violated five patents held by the Finnish company.

The judge did not provide an explanation for his ruling and the full six-member commission now has 60 days to review his determination.

The ITC has the authority to bar imports into the United States of products found to be infringing on patents and Nokia was seeking to have Apple products barred.

The two mobile phone titans have been embroiled in a fierce legal battle over patents with Nokia lodging at least two other lawsuits against Apple and the California gadget-maker filing countersuits against the Finnish company.

Currency flexibility key in LatAm: World Bank chief

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AFP, Calgary, Canada, Mar 27: Latin American nations should allow their currencies to firm if needed to help cool overheated economies, the International Monetary Fund chief said Saturday.

"A range of policies could be used to prevent overheating and dampen the credit cycle, including upward exchange rate flexibility, a more appropriate mix of monetary and fiscal policies, and adequate financial regulations," IMF managing director Dominique Strauss-Kahn told finance ministers at the Inter-American Development Bank annual meeting in this Canadian plains city.

"In some cases, capital controls might also be useful. But they should not substitute for fundamental policy adjustments," said Strauss-Kahn, who earlier in the month paid visits to Brazil, Panama and Uruguay.

Brazil, the region's industrial and natural-resources economic powerhouse, is among countries that have sought to use regulatory measures to curb speculative capital flows in its markets.

"Latin America faces two principal economic challenges: to increase the sustainable rate of economic growth and to reduce the volatility of growth," the IMF chief added.

Indian PM commits to reforms

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AFP, New Delhi, Mar 27: India's prime minister has reaffirmed his Congress-led government's commitment to economic reforms as the administration battles a host of corruption scandals.

The new thrust on reforms is seen by analysts as an attempt by the government to re-energise its legislative programme and take away the focus from the corruption storm.

"I confirm our commitment to new wave of reforms," Singh, widely credited with opening up India?s economy in 1991 while finance minister, said in a speech late Friday.

He added that he welcomed the "national focus on corruption because it will, as it already has to an extent, generate public pressure in favour of more reform".

The government has been hit by a slew of corruption scandals, ranging from a cash-for-votes controversy and the cut-price sale of telecoms licences to graft surrounding last year's Commonwealth Games.

Singh's own "Mr Clean" reputation has been tainted by the scandals, with the 78-year-old prime minister being portrayed by critics as a weak leader who turned a blind eye to corruption in his administration.

Singh said the battle against corruption is a "relentless one" requiring "eternal vigilance".

Economic liberalisation had "ended old opportunities for corruption and favouritism... but human ingenuity and the desire to make a quick buck are such that the greedy are able to tap into new sources of corruption", Singh said.

India's economic reform programme has been stalled by the scandals that have paralysed parliament and been a factor in discouraging foreign capital flows, analysts say.

"What India needs is a political consensus (on reform)", Singh said.

Singh said the government was committed to carrying forward reforms in the financial sector to sustain India's high growth -- expected to be nine percent in the fiscal year starting April 1 -- and ease high inflation.

Putting into effect of India's proposed national Goods and Service Tax (GST) is long overdue, he said, adding that "we are committed to implementing it" from 2012.

India's government earlier in the week introduced legislation to pave the way for the passage of the far-reaching reform aimed at simplifying tax on goods and services.

The long-delayed GST seeks to harmonise the tax structure among India's 29 states and create a uniform levy system.

It is one of the government's most important proposed reforms.

But it faces major hurdles to become law. It must be approved by two-thirds of parliament and half of the country's states, meaning the coalition will have to rely on rivals to see it passed.

Some states, fearing loss of revenue and autonomy in setting taxes, and the main national opposition Bharatiya Janata Party (BJP) are opposed to the changes.

The government is also aiming to overhaul financing regulations to make it easier to fund vitally needed projects to overhaul India's dilapidated infrastructure.

Auditor raps India's ONGC over 'inflated' claims

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AFP, New Delhi, Mar 27: India's auditor has rapped state-run ONGC over its $2.12 billion purchase of Imperial Energy, saying unrealistic output forecasts were made to justify the energy giant's costliest ever acquisition.

The harshly-worded condemnation comes only months before Oil and Natural Gas Corp (ONGC) is slated to hold a share sale targeted to raise around $2.7 billion for government coffers.

The government auditor said Russia-focused Imperial, whose main assets are in the Tomskh region of east Russia, has produced lower than projected output and its oil reserves had been inflated.

London-listed Imperial has been able to achieve production of only 15,803 barrels of oil per day (bpd) as against the envisaged production levels of 35,000 bpd (at the time of acquisition), the Comptroller and Auditor General said in its report tabled in parliament late Friday,

The shortfall had caused a loss of 11.8 billion rupees or $265 million on top of several billions dollars in losses stemming from unproductive exploration of assets.

ONGC still has "to succeed as an (energy) operator", the report said.

ONGC Videsh Ltd, the overseas arm of ONGC, acquired Russia-focused Imperial Energy in January 2009 for $2.12 billion, making it the company's most expensive acquisition ever.

ONGC had to reduce the proven reserve size of the asset during 2009-10 by 1.53 million tons "indicating the inflated size of reserves estimated by the company at the time of its acquisition", the auditor general said.

"The fact the company even now is not in a position to generate a realistic production profile and bring out an economic analysis confirms all the problems associated with these fields were not properly assessed," the report said.

Investors are already nervous about India's raft of financial scandals and analysts say the damning report could jeopardise the government's plans to sell off a five percent stake in ONGC sometime mid-year.

The report criticising ONGC comes after the auditor last year stirred a massive controversy by saying the government's cut-rate sale of mobile licences had cost the public treasury up to $40 billion.

Philippine carrier gets green light to cut units

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AFP, Manila, Mar 27: National flag-carrier Philippine Airlines has won government approval to hive off some units to cut costs, but the staff must get higher severance pay, President Benigno Aquino's chief aide said Saturday.

The government ruling gives the struggling company a free hand to farm out its in-flight catering, airport services and call centre reservations to other companies, to cut its long-terms costs.

However the government also ordered PAL to pay a severance pay equivalent to 125 percent of the affected employees' monthly salaries for each month they were employed, up from the 25 percent that the airline had originally offered.

The Aquino government forced PAL and its ground crew staff to submit to government arbitration late last year after the the union rejected the company's severance offer to 2,600 affected workers.

"In light of this development, we are issuing a ruling which takes into consideration the welfare of the workers involved in accordance with labour laws and regulations," Executive Secretary Paquito Ochoa said in his ruling.

Neither side could be reached for comment Saturday.

PAL had said in November it expected to be hit with a bill of almost 60 million dollars in severance payments to staff when it farms out ground crew work.

After incurring a combined 312 million dollars in net losses in its two fiscal years to March 2010, PAL had said spinning off the ground services would help the airline save the jobs of the remaining 4,000-plus staff.

Brown urges G-20 to seal 'global growth pact'

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AP, Dallas, Mar 27: Alaska Airlines and its Horizon Air affiliate canceled 95 flights Saturday because a computer system used for flight planning failed.

The outage lasted intermittently for about seven hours and resulted in the two airlines scrapping about 12 percent of their combined schedule before technicians fixed the system, which returned at 10 a.m. Pacific time.

Company spokesman Paul McElroy said many other flights were delayed, and customers had trouble getting flight-status updates on the airlines' website because of the outage.

McElroy said stranded passengers would be rebooked on later planes or put on other airlines and Alaska will consider adding flights. He said passengers will not be charged a flight-change fee.

The airline declined to say how many passengers were affected.

Alaska Airlines, which canceled 54 flights, uses versions of the Boeing 737 with roughly 124 to 172 seats, according to airline seating chart websites. Horizon, which canceled 41 flights, uses smaller turboprop planes.

McElroy said the company was going through a routine upgrade of its computer system when something went wrong.

Seattle-based Alaska Airlines flies to cities in the U.S., focusing on the West Coast, and to Canada and Mexico. Alaska and Horizon are owned by Alaska Air Group Inc.

Brown urges G-20 to seal 'global growth pact'

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AP, Brussels, Mar 27: Less than a week ahead of a meeting of the Group of 20 rich and developing nations in China, former U.K. Prime Minister Gordon Brown has urged the world's most powerful economies to seal a "global growth pact" to fight unemployment.

Brown was joined on Saturday by other top economic policymakers in his call for a transformation of the G-20 to help it remain relevant in a global economy torn by clashing national interests — although their focus differed somewhat from his.

To tackle high unemployment in poor and rich nations and a lack of economic growth in Europe and the United States, politicians need to look beyond merely reducing deficits, Brown said.

"All around the world deficit reduction has become the big issue when actually it's only one of the issues," Brown told a panel in Brussels debating the relevance of the G-20. The panel also included Pascal Lamy, the director general of the World Trade Organization, and World Bank President Robert Zoellick.

Brown said the G-20 was at a juncture that would decide whether it can deliver prosperity to poorer nations in the Middle East and North Africa as well as more established economies in America and Europe.

His comments come as tens of thousands of people were marching through the streets of London to protest austerity measures and political upheavals continue in Northern Africa and the Middle East triggered in part by huge youth unemployment.

They also come ahead of a meeting of G-20 central bank governors and cabinet ministers in Nanjing, China, on Thursday — convened by French President Nicolas Sarkozy — to discuss reform of the global monetary system. France has made such a reform one of the focal points of its yearlong presidency of the G-20, along with reducing economic imbalances and volatility in commodity prices.

While Brown said an overhaul of the monetary system was necessary, he chose to take a broader view.

"I cannot imagine that the world can solve the unemployment problem we've got without closer economic cooperation," he told the panel, organized by the United States' German Marshall Fund, a nonpartisan public policy group.

If China increases domestic consumption faster than expected, the U.S. manages to rebalance its own expansive consumption and investment patterns and Europe can overhaul its struggling economies, the global economy could grow about 4 percent faster by 2014, create 50 million jobs and pull some 100 million people out of poverty, Brown said citing a report by the International Monetary Fund.

But he cautioned that there was a lack of political will on the international level to compromise on domestic interests. "We are retreating into national silos just when international economic cooperation is more needed than ever," Brown warned.

Brown was one of the politicians central to heaving the G-20 into the limelight of global decision making in the wake of the financial crisis. The group's meeting in London in 2009, when Brown was British prime minister, is widely seen as one of its most successful, forging deals on tighter financial regulation.

Since then, however, the G-20 has been struggling to create agreements between economies on widely divergent growth paths such as the U.S. and China. Its most recent meeting in Paris in February was criticized for concluding a watered down deal on reducing dangerous economic imbalances.

Lamy and Zoellick also said the G-20 needed to transform if it wanted to remain relevant — the WTO chief pointed to paralysis over disagreements between the U.S. and China, while the World Bank president said the overrepresentation of Europe was being seen by many as coming at the expense of poorer African and Asian nations.

However, both stressed that a focus on deficit reduction was unavoidable at the moment. Zoellick, who worked under former President George W. Bush, said the U.S. needed to address its high debt and deficit.

Asked about the anti-austerity demonstrations in London, Lamy said that in his opinion, "for the moment a number of countries have no choice but to go through this painful period."

London's biggest protest since Iraq war in 2003

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AP, London, Mar 26: More than 250,000 people took to London's streets to protest the toughest spending cuts since World War II — one of the largest demonstrations since the Iraq war — as riot police clashed with a small groups. More than 200 people were arrested.

Although most of Saturday's demonstration was peaceful, clashes continued into the night as dozens of protesters pelted officers with bottles and amonia-filled lightbulbs. Groups set several fires and smashed shop windows near tourist landmarks such as Trafalgar Square.

Teachers, nurses, firefighters, public sector workers, students, pensioners and campaign groups all took part in Saturday's mass demonstration.

'They shouldn't be taking money from public services. What have we done to deserve this?' said Alison Foster, a 53-year-old school teacher. 'Yes, they are making vicious cuts. That's why I'm marching, to let them know this is wrong.'

Britain is facing 80 billion pounds ($130 billion) of public spending cuts from Prime Minister David Cameron's coalition government as it struggles to slash the country's deficit. The government has already raised sales tax, but Britons are bracing for big cuts to public spending that are expected next month.

Treasury chief George Osborne has staked the government's future on tough economic remedies after Britain spent billions bailing out banks. Some half a million public sector jobs will likely be lost, about 18 billion ($28.5 billion) axed from welfare payments and the pension age raised to 66 by 2020.

Commander Bob Broadhurst of the Metropolitan Police confirmed more than 250,000 people had marched peacefully, but said around 500 caused trouble.

Hundreds were arrested and police expected that number to rise. Dozens were injured, and several were admitted to hospitals for a range of problems, including shortness of breath and broken bones. Five police officers were also injured.

The demonstration began in the afternoon. Police said one small group of protesters broke away from the main march, scuffling with police officers and attempting to smash windows on two of London's main shopping streets. Others threw objects at the posh Ritz Hotel in nearby Piccadilly.

The protesters, shouting 'Welfare not Warfare!' outnumbered the police. Some attacked police officers with large pieces of wood. A handful of bank branches were damaged when groups threw paint and flares at buildings.

Still, the day's protest otherwise had a carnival feel with music, big screen TVs and performers in Hyde Park, one of London's biggest public gardens.

The TUC, the main umbrella body for British unions, says it believes the cuts will threaten the country's economic recovery, and has urged the government to create new taxes for banks and to close loopholes that allow some companies to pay less tax.

TUC general secretary Brendan Barber said he regretted the sporadic violence.

'I don't think the activities of a few hundred people should take the focus away from the hundreds of thousands of people who have sent a powerful message to the government today,' he said. 'Ministers should now seriously reconsider their whole strategy after today's demonstration. This has been Middle Britain speaking.'

Ed Miliband, leader of the opposition Labour Party, likened the march to the suffragette movement in Britain and the civil rights movement in America. 'Our causes may be different but we come together to realize our voice.'

'Brain waste' thwarts immigrants' career dreams

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AP, New York, Mar 27: After finishing medical school in Bogota, Colombia, Maria Anjelica Montenegro did it all — obstetrics, pediatrics, emergency medicine, even surgery. By her estimate, she worked with thousands of patients.

None of that prepared her for the jobs she's had since she moved to the United States: Sales clerk. Babysitter. Medical assistant.

That last one definitely rubbed raw at times.

'I know I was working in my field,' the 34-year-old New York resident said. 'But that is medical assistant. I'm a doctor.'

Montenegro is hardly unique, given the high U.S. unemployment rate these days. Her situation reflects a trend that some researchers call 'brain waste' — a term applied to immigrants who were skilled professionals in their home countries, yet are stymied in their efforts to find work in the U.S. that makes full use of their education or training.

Most of these immigrants wind up underemployed because of barriers like language, lack of access to job networks, or credentialing requirements that are different from those in other countries. Some are held back even further because they're also in the U.S. illegally.

An analysis by researchers at the Migration Policy Institute, an immigration think tank, estimated that 1.2 million college-educated immigrants in the United States were underemployed, out of a population of 6.7 million. About another 350,000 were unemployed. The analysis, based on data from the Census Bureau's 2009 American Community Survey, did not differentiate between legal and illegal immigrants.

Brain waste has consequences for immigrants as well as American employers and the larger economy, said Jeanne Batalova, policy analyst at the institute and co-author of a study on the issue.

For immigrants, it means bringing home less money than they have the potential to earn. For employers, it means fewer skilled applicants in their hiring pools. For the country overall, it means a missed opportunity to leverage already trained professionals in areas where there may be a desperate need for them.

There's a 'loss when human talent and potential is not maximized in the fullest,' Batalova said.

Mohan Singh, 55, thought moving to the United States would be a smooth transition. Born and raised in India, he left his home country for Kuwait, where he worked in air conditioning and elevator maintenance. He lived in Kuwait for 25 years, started his own company and was successful enough to send his daughter and son to college in the United States.

At their urging, Singh came to the U.S. in 2000. He said he thought 'that I'll be getting the same job, I'll be getting into a good field, make a good life.'

It took seven years to complete the paperwork that allowed Singh to work here legally. When he applied for jobs, would-be employers focused on the fact that Singh had not worked in his field in the United States.

'They cancel all my experience,' he said.

He now spends 12 hours a day, seven days a week, behind the wheel of a taxicab. It's a far cry from the work he's done for much of his life, Singh said, and the wages are much lower than those he once brought home. The whole experience has soured him on the idea of staying in America. He plans to move back to India in a couple of years, when his son is done with his post-graduate work.

'I used to have money, I used to have good life,' Singh said. 'Over here, I'm hand to mouth.'

Nikki Cicerani, executive director of Upwardly Global, a nonprofit organization that helps legal immigrants find work in their chosen professions, said typically, immigrants come from environments where job-seeking is done differently. They may not know how to navigate the system, whether it's building a network to learn about job openings or having a resume formatted in a way that is familiar to American employers.

Interviewing can be especially tricky. 'In many other countries, the resume and the educational experience is the clincher,' Cicerani said, 'whereas in the United States, the interview is make it or break it.'

American employers can also have difficulty figuring out if an immigrant would be the kind of employee they are seeking, absent a ready way of understanding how foreign educational or professional expertise translates in the U.S. job market, Cicerani said.

'They're not really clear how to evaluate a foreign degree against a U.S.-educated candidate,' she said.

Montenegro came to the United States in 2004 to care for her mother, who had been diagnosed with breast cancer. She stayed after marrying a man she met here, and became an American citizen. She now lives in the New York borough of Queens with her husband and two children.

Language was the first barrier that Montenegro encountered. She needed to improve her English, but she also needed to work. She took a job as a sales clerk in a local mall, and even though it felt strange to be a medical professional working in retail, she said, the position at least helped her polish her language skills.

Then came larger hurdles that no amount of perfect English could surmount. There's a series of exams, the first of which cost $1,000 alone, Montenegro said. She also has to complete a residency, a requirement for all graduates of American medical schools. There are a limited number of residency slots overall which makes it a very competitive process for everyone, but even more so for foreign medical school graduates.

Montenegro has one more exam to pass before she can apply for a residency, a process that will take at least a year or two. There's no guarantee that she'll be accepted for a residency; At times, she fears she may never work as a doctor here.

'So many times I want to get my things and my passport and go back to my country,' Montenegro said. Over the years, she heard stories about the lifestyles her doctor friends in Colombia were able to afford as she worked at various low-wage jobs.

While Montenegro agrees that her credentials and her ability to provide good health care should be vetted before she's allowed to work in this country, she thinks having to train as a general practitioner all over again when she already has experience is a waste — especially for the U.S., she said, because she speaks fluent Spanish and could be an asset in any Spanish-speaking community in need of a doctor.

'I'm ready to do that and help people,' she said.

Rosneft shares nosedive after BP deal blocked

Friday, March 25, 2011 | 0 comments

AFP, Moscow, March 25: Rosneft shares opened sharply lower on Friday after an arbitration tribunal blocked British energy giant BP's Arctic oil tie-up with Russia's largest oil company.

The state-held firm's shares were down about 1.5 percent in early trading on Moscow's MICEX exchange while those of BP's Russian joint venture TNK-BP opened the day higher by 0.9 percent.

The broader market was down as traders digested the Stockholm Arbitration Tribunal's Thursday decision to block the British firm's strategic alliance with Rosneft.

BP has vowed to try to complete the deal in some form but market analysts said uncertainty will hang over Rosneft's stock in the short term.

The unprecedented share-swap and Arctic exploration agreement was announced with much fanfare by the Russian government in January and was soon followed by a similar agreement between Rosneft and the US oil major Exxon Mobil.

The deal would have handed Rosneft five percent of BP's ordinary voting shares in exchange for approximately 9.5 percent of the Russian company's stock.

The two firms also agreed to jointly search for oil in Rosneft's three licensed blocks in the Arctic—a 125,000 square kilometre (48,000 square mile) region said to contain five billion tonnes of oil and 3.0 trillion cubic metres of gas.

But the deal was strongly opposed by the small group of billionaires who make the Russian half of the TNK-BP venture.

The group—known collectively as AAR and led by Alfa Group chief Mikhail Fridman—argued that the tie-up broke their shareholder agreement with BP to have the right of first refusal on the British firm's Russian ventures.

BP said in a statement that it may now return to arbitration in a bid to complete the share swap portion of the Rosneft deal.

Disgraced ex-David Jones boss lands new top job

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AFP, Sydney, March 25: The disgraced former chief of Australia's upmarket department store chain David Jones landed another high-profile job Friday less than a year after quitting amid allegations of sexual misconduct.

Mark McInnes was appointed chief executive of Premier Retail, which owns Just Jeans, Jay Jays, Portmans, Jacqui E, and Peter Alexander with about 950 stores throughout Australia and New Zealand.

'In my previous role as CEO, I did make an error in judgement,' McInnes told journalists after the announcement of his Aus$2 million ($2 million) a year appointment.

'But I owned up to the error of judgement and I apologised to all concerned.'

McInnes resigned from David Jones last June after admitting behaving 'in a manner unbecoming of a chief executive to a female staff member' at two company functions.

In October, the department store settled a sexual harassment case brought against him by the ex-staffer who had sought $36.5 million for allegedly enduring his unwelcome advances.

David Jones said the out-of-court settlement was worth Aus$850,000, including a contribution from McInnes.

According to reports, McInnes left David Jones with more than Aus$8.6 million in cash and shares.

Premier chairman Solomon Lew called McInnes one of Australia's most successful retailers, and declined to comment on 'past events that did not involve Premier'.

'It goes without saying that Premier and Just (Jeans) have long had high standards of workplace values and performance. This has always been and always will be important,' Lew told reporters.

German Ifo indicator falls for first time since May

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AFP, Berlin, March 25: Germany's Ifo indicator of business confidence in Europe's top economy fell in March for the first time since May, the Ifo institute said Friday.

The closely watched index inched down to 111.1 points from 111.3 in February after nine consecutive monthly rises. The fall was however not as steep as feared by economists, who had forecast on average a drop to 110.5 points.

Brazil airplane giant posts $341 mln 2010 profit

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AFP, Sao Paulo, March 25: Brazil's Embraer, the world's third largest commercial airplane manufacturer, on Thursday announced over $340 million in profits in 2010.

The company said in a statement that it had posted profits of 600.2 million reals, or $341 million according to the average 2010 exchange rate, with a total benefit for shareholders of 573.6 million reals, or $326 million.

During the past year the company delivered 101 commercial aircraft and 145 business aircraft, 'exceeding annual delivery projections in all categories,' it said.

In 2009 the firm delivered 244 aircraft and posted a profit of $498 million.

Embraer's net income in 2010 was $5.35 billion, with 54 percent coming from the commercial aircraft sector.

The firm said it was hurt by the devaluation of the US dollar against the real, but that 2010 brought 'concrete signs of recovery' following the global economic crisis.

The aviation manufacturer expects a higher profit of $420 million this year and a net income of $5.6 billion.

With more than 17,000 employees, Embraer is the third largest airplane manufacturer behind global giants Boeing and Airbus.

Australia extends deadline for broadband network

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AFP, Sydney, March 25: Australian senators have extended by two-and-a-half years the deadline for completion of the country's national broadband network in order to connect an extra million homes.

The company building the Aus$36 billion ($36 billion) system, NBN Co, now has until December 2020 to build the infrastructure across the vast continent, instead of the original June 2018 date.

Communications Minister Stephen Conroy said more time was needed to wire up 93 percent of residences, rather than the 90 percent first planned, to the high-speed optical fibre network.

'The build has expanded,' he told the Senate, before the amendment was passed on Thursday.

The government argues the broadband network will boost the economy and ease isolation for the huge country's rural regions, but the opposition claims it is too expensive.

Conroy forced an extra day of debate on the scheme after unveiling 23 pages of amendments to existing NBN legislation late on Wednesday.

Australia's second largest telecoms firm Optus has already expressed concerns about the proposed changes. Among them are proposals that would allow some companies, such as utility providers, to buy their Internet access directly from NBN rather than through retailers such as Optus and Telstra, as originally envisaged.

Telecoms companies also fear another amendment could water down the competition regulator's powers.

'To be frank these new amendments have thrown us a curve ball,' Optus chief executive Paul O'Sullivan said.

The broadband scheme was a key election pledge from Labor Prime Minister Julia Gillard and a major factor in allowing her to form a minority government backed by rural independents after last year's polls were deadlocked.

The government hopes the delivery of broadband will revolutionise workplaces and services—including in education and health—for a nation where thousands live in remote communities.

Most homes and businesses will be connected to optical fibre but a small proportion will be linked to NBN via wireless or satellite technology due to the vastness of the country.

BHP to invest billions in Australian iron ore, coal

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AFP, Sydney, March 25: Mining giant BHP Billiton said Friday it will pour almost $13 billion into expanding its coal and iron ore operations in Australia, key commodities that are driving the boom in Asian economies.

The cashed-up resource giant's huge spending spree will see investment in mine and rail projects across the country as well as new equipment as it moves to meet ever growing demand from key markets in China and India.

Anglo-Australian BHP said $7.4 billion would be pumped into production growth in its Western Australia iron ore operations to boost capacity to more than 220 million tonnes a year.

Of that, $3.4 billion will be used to develop its Jimblebar mine and rail links, and to buy mining equipment and rolling stock.

Another $2.3 billion is earmarked for improvements to Port Hedland, including extra berths and shiploaders, a car dumper, rail works and rolling stock.

The rest of the investment will be used to improve port blending facilities and rail yards. BHP will contribute $6.6 billion to the projects and its partners the rest.

The Melbourne-based miner also announced a $5 billion cash injection into three key metallurgical coal projects in Queensland's Bowen Basin, with BHP providing $2.5 billion.

This will add 4.9 million tonnes of annual mine capacity through development of the company's Daunia operation and a new mine in Broadmeadow.

Port capacity at the Hay Point Coal Terminal will also be increased.

Another $400 million will be used to expand a thermal coal mine in the New South Wales Hunter Valley, the diversified company said in a statement.

BHP iron ore president Ian Ashby said the intention was to develop port capacity so that the company could fill its 240 million tonnes per annum allocation in Port Hedland's inner harbour.

'We have intentionally overbuilt the ore handling facilities at Jimblebar and expect to incrementally grow mine production to ensure that our port and rail systems are operated at full capacity during this debottlenecking programme,' he said.

First production from the Jimblebar mine was expected in early 2014.

BHP Billiton metallurgical coal president Hubie van Dalsen said the company had a deep pipeline of expansion projects to develop its large reserves of metallurgical coal.

'Our strategy is to rapidly progress development of these projects to capture the increasing demand we see for hard coking coal,' he said.

BHP has been at the forefront of a huge mining boom in Australia as emerging Asian economies—particularly China and India—voraciously consume the country's resources to fuel their breakneck growth.

Earlier this year the miner reported a 72 percent surge in net profit to $10.52 billion for the six months to December 31, thanks to sales to Asia and as the West edges out of an economic slump.

Chief executive of ferrous and coal, Marcus Randolph, said the company was well placed to meet increasing demand.

'We are the logical supplier to be expanding as fast as we reasonably can,' he told journalists.

Australian Stock Report head of research Geoff Saffer called BHP's decision a big boost for Australia.

'It's incredible, a nearly $10 billion investment (BHP's share) in coal and iron ore underlines the confidence BHP has in the future of our resources sector,' he said.

Friday's announcement came a day after the government agreed on a modified version of its controversial mineral resources tax, in which miners would be reimbursed for any future rise in their state royalty payments.

Despite the expansion plans, BHP's shares initially fell on the Australian Stock Exchange, largely due to speculation it could launch a possible takeover bid for Woodside Petroleum, analysts said.

They recovered to close the day five cents firmer at Aus$44.76 ($44.76).

Eurozone private sector lending stronger in February

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AFP, Frankfurt, March 25: The rate of growth in eurozone bank loans to the private sector rose again in February, the European Central bank said Friday, signalling more support for growth across the 17-nation bloc.

Lending expanded by 2.6 percent from the same month a year earlier, up from 2.4 percent in January, an ECB spokesman said, reinforcing an upward trend that had been interrupted in December.

The central bank also said that eurozone money supply as measured by its M3 indicator grew by 2.0 percent in February, a rate that was stronger than the increase of 1.5 percent the previous month.

The ECB regards this figure as a key guide to pressures likely to affect inflation in the medium term.

Lending and money supply data are widely-followed indicators of consumer demand and overall economic activity.

Rising figures point to increased demand, which normally means inflation is picking up and could incite the ECB to raise interest rates.

The ECB has kept its key interest rate at a historic low of one percent since May 2009 but financial markets expect it to rise to 1.25 percent in April.

Members of the central bank's governing council are concerned about inflation, which at 2.4 percent is now well above the ECB's target of just under 2.0 percent.

A breakdown of the ECB loan data showed that lending to non-financial corporations gained 0.6 percent in February, slightly better than the January figure of 0.5 percent.

That measure had been contracting at the end of 2010.

Loans to households were 3.0 percent stronger on a 12-month basis, but that marked a slight easing from growth in January of 3.1 percent.

Consumer credits showed a decline of 0.9 percent in February, a narrow improvement on the previous month's decline of 1.0 percent.

Malaysian car production may face Japan hitch

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AP, Kuala Lumpur, March 25: Malaysia's auto sales are on track to grow 2 percent to a record 618,000 vehicles this year, although production could be disrupted in coming months by parts shortages following Japan's earthquake and tsunami.

Sales last year in Southeast Asia's largest passenger car market rose 12.7 percent to 605,156 vehicles. For the first two months of this year, sales were up 4 percent, Malaysian Automotive Association president Aishah Ahmad said Friday.

The 2011 sales forecast of 618,000 vehicles will be reviewed in July when the situation in Japan is clearer, she said. There has been no impact on sales so far, Aishah said.

Japan's automakers suspended production after the massive March 11 earthquake and tsunami due to damage to suppliers' factories in northeastern Japan and power shortages. Most have only partially resumed production.

Japanese models account for about a third of vehicles sold in Malaysia, led by Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. The three carmakers said it was too early to assess the impact on their Malaysian factories.

Ang Boon Beng, who heads Edaran Tan Chong which distributes Nissan cars in Malaysia, said the bulk of car parts are sourced from other Southeast Asian nations to take advantage of low tariffs under a regional free trade pact and this has helped to cushion the impact on Malaysian automakers.

Nissan plans to introduce an electric car in Malaysia this year, although the launch date may be delayed depending on Japan's recovery, he said.

Honda senior general manager Azhar Abdul Wahab said stockpiles of parts are sufficient for the next three months, after which production may be hurt if the situation in Japan doesn't stabilize.

UMW Toyota Motor's President Ismet Suki said overtime work has been halted but there was no cause for alarm yet.

"We are still assessing the situation but I'm quite confident that the catch-up plans will be quite ambitious," he said.

Big queues for iPad 2 in Australia

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AFP, Sydney, March 25: Hundreds of people queued for up to two days to get their hands on the iPad 2 which went on sale in Australia on Friday for the first time.

Apple's latest touchscreen tablet computer hit stores in the United States on March 11 but only went on sale here at 5:00pm (0600 GMT) and fans snaked round the company's flagship store in central Sydney.

First in line was Canadian backpacker Alex Lee who headed to the store straight from the airport after arriving from Singapore on Wednesday.

"I came straight from the airport. I arrived here Wednesday at noon and started the line," he said.

"At 5:00 pm today, I will have waited for over 53 hours."

But two nights sleeping on the pavement didn't dampen his excitement

"I feel good. I have queued before for the iPhone and the first iPad and every time I met heaps of cool people coming from all around the world," he added.

Tweeting from outside the store, Alex said he felt part of a community.

"In the line we help each other, we swap chairs and we bring back food. So many people are helping us, some even ask to take their picture with me," he said.

The iPad 2, which is one-third thinner, nearly 15 percent lighter and faster than the model released in April 2010, was also available in 24 other countries Friday, but not Japan.

It was scheduled to go on sale there last Friday but was delayed because of the devastating earthquake and tsunami.

Number eight and nine in the Sydney line, high school students Will and Josh, both took a day off from the classroom—with the blessing of their parents.

They arrived on Thursday afternoon and stayed overnight.

"It's the fourth time I've done this kind of thing," said Josh.

Further down the line, Apple fans were less hard-core.

"I really don't understand the excitement," said Sally, 73, from England.

"I just came here to have a look at the line for my son. Because he is working, I started queuing. The woman behind me gave me a chair."

Apple sold more than 15 million iPads last year and rival electronics manufacturers have been scrambling to produce their own touchscreen devices.

Blackberry maker Research In Motion recently announced that its iPad rival, the PlayBook, would shortly go on sale in the United States and Canada at a price identical to that of the iPad.

Besides the size and weight, the other major improvement to the iPad 2 is the addition of front- and rear-facing cameras that allow users to take still pictures and video and hold video conversations.

Apple’s iPad 2 hits overseas stores after US sell-out

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Reuters, Wellington/Sydney, March 25: Hundreds of customers lined up outside Apple stores in Australia and New Zealand on Friday for the international launch of the iPad 2, which has flown off the shelves in the United States leaving the company struggling to meet demand.

Analysts forecast some 1 million devices may have been sold in the first weekend of the launch in the United States, but many warn that it's not clear how supply constraints will affect availability following the Japan earthquake and tsunami.

The iPad 2, a thinner and faster version that features two cameras for video chat, was introduced in the United States on March 11. But some would-be buyers have expressed frustration at how difficult it has been to secure one of the wildly popular tablet computers, sparking speculation Apple misjudged demand.

It went on sale in New Zealand at 0400 GMT. One store in Wellington was allocated just 12 of the gadgets and they were snapped up in a matter of minutes.

Sales kick off in Australia at 0600 GMT and then roll out to other countries including France, the United Kingdom, Canada, Denmark, Germany, Italy, Mexico, Netherlands, and Spain.

'If it wasn't for the iPad, I wouldn't be in Australia right now,' said Alex Lee, a backpacker from Canada, who was the first in the queue outside the glass-fronted Apple store in Sydney's central business district. He said he diverted his travels from Singapore to attend the launch.

'It's like a habit. I've also lined up on Regent Street in London for the iPhone', added Lee, who had a folding chair and blanket and had spent two nights waiting.

Apple staff in Sydney, dressed in the company's blue branded shirts , handed out trays of sandwiches to those in the queue, some of whom had bedded down on blankets overnight before being awoken by bright sunshine.

Its retail price in Australia starts at A$579 ($568), against $499 in the United States. The iPad 1 started selling in Australia from A$629 when it was launched.

In Wellington, staff at electronics retailer JB HiFi said they had only received about a dozen iPad 2s and they were snapped up in about 10 minutes. A sales assistant said the store did know when the next delivery would come in.

The first iPad, which went on sale a year ago, sold 500,000 units in the first week and crossed the 1 million unit mark in 28 days. Nearly 15 million iPads were sold in nine months of 2010, two or three times as many as analysts had predicted.

Apple Chief Executive Steve Jobs said on Tuesday the company was 'working hard to build enough iPads for everyone.'

Fiona Martin, a spokeswoman for Apple in Australia, declined to comment on whether there was enough stock to meet demand.

'We don't comment on speculation, we've got plenty down there for all those folk that are in the queue.'

A prospective buyer in Wellington, 22-year-old student Ian MacDonald, said he had held off buying the first generation iPad because it lacked a camera and he wanted any bugs ironed out.

'This version looks way better, with the cameras and it beats all the other tablets because there are so many apps (applications),' he said.

Myles Jihme, a student from Malaysia, waiting outside the Apple store in Sydney said he intended to buy two iPads, the maximum allowed by Apple, and would auction one for charity. 'All the profits from the sale will go to Japan's disaster fund,' he said.

In addition to Friday's roll out, the iPad 2 will be available in Hong Kong, South Korea, Singapore and other countries in April.

Apple now faces increased competition from rivals. Samsung Electronics and Motorola have tablets on the market and Blackberry-maker Research In Motion and Hewlett-Packard Co are set to release tablets in coming months.

India cancels 14 more 'fake' pilot licences

NEW DELHI (AFP) – India's aviation regulator said Friday it had cancelled the licences of 14 more commercial pilots caught forging their qualifications in a spreading scandal that has rocked passenger confidence.

Cases of pilots exaggerating their flying time while training and other irregularities have emerged since a captain who made several bad landings was found to have submitted faked paperwork to gain her licence.

At least six pilots, including from the Air India, Indigo and SpiceJet airlines, have already been arrested as authorities check thousands of licences.

"We have cancelled the licences of 14 pilots who were flying passenger planes. All of them had submitted fake training records," Directorate General of Civil Aviation chief E.K. Bharat Bhusan told AFP.

All 14 pilots had procured their eligibility certificates from the Rajasthan State Flying School in western India, where police are checking instructors' logbooks.

A pilot needs to have completed a minimum 200 hours of flying to get a licence but several of the pilots from Rajasthan State Flying School had only completed 50-60 hours, officials say.

Power outages could hamper Japanese recovery: IMF

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AFP, Washington, March 25: Restoring power and government reconstruction spending are crucial to Japan's economy resuming growth, the IMF said Thursday, after Tokyo put the damage of the March 11 earthquake at $309 billion.

International Monetary Fund officials said they expected a short-term slowdown, but growth would "rebound" to pre-quake levels and more.

But unlike natural disasters in other countries, the potential of sustained power shortages due to the Fukushima Daiichi plant emergency, the shutdowns of other nuclear plants and the radiation threat complicate recovery prospects, they said.

"The uncertainties from the nuclear situation and the power interruptions could weigh on the recovery by disrupting production across the country, and by weighing on corporate and household sentiment," said Ken Kang, the IMF's Asia Pacific division chief.

Kang cited Japanese government figures that three to five percent of the country's capital stock was damaged or destroyed in the quake and subsequent tsunami, about double the scope of damage done by the 1995 Kobe earthquake.

"Despite the extensive damage we are of the view that the economic costs are manageable," he said.

Japan's government is fiscally strong enough to handle the recovery costs, and that boosting spending to rebuild the country would have no long-term impact on its fiscal standing.

"We view Japan as having a relatively ample pool of savings that it can finance its own reconstruction needs," said Mahmoud Pradhan, the IMF Japan mission chief.

The officials praised Japanese institutions, especially the Bank of Japan, for their "decisive and swift" response to the quake, and said the damage to the overall financial system is minimal."

They said the government did not need external aid, and that it had 1.3 trillion yen ($16 billion) available for quick disbursement to start the recovery.

Global crises to soften M&A near-term after strong Q1

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Reuters, Philadelphia/London, March 25: This year is set to be a blockbuster for deals, exemplified by mega acquisitions such as T-Mobile USA or Genzyme, with turmoil in the Middle East and Japan causing just a temporary slowdown.

Worldwide mergers and acquisitions (M&A) have risen 58 percent so far this year, according to preliminary data from Thomson Reuters, marking the best start to a year since 2007 and building on last year's tentative recovery.

A doubling of deal volume in the United States and Europe, which was hobbled in 2010 by the sovereign debt crisis, as well as big deals such as AT&T Inc's (T.N) $39 billion bid for T-Mobile USA, helped push announced worldwide M&A to $717 billion so far this year.

"We expect the M&A market will continue to be robust for the balance of 2011. All the fundamentals exist -- improving economy, improving credit environment, high CEO confidence," said Jack MacDonald, Bank of America Corp's (BAC.N) co-head of Americas mergers and acquisitions.

"Given these fundamentals, global M&A could be up in excess of 20 percent in 2011," MacDonald said.

Other bankers estimated deal volume would rise 10 percent to 15 percent this year.

The first quarter was marked by large cross-border deals, including Sanofi-Aventis SA's (SASY.PA) $20.1 billion acquisition of Genzyme Corp (GENZ.O).

In a sign the financing markets are better than ever, JP Morgan underwrote a $20 billion bridge loan for AT&T, the bank's largest ever acquisition-related financing commitment.

Rick Leaman, a managing director at Moelis & Co, likened the T-Mobile USA deal to Procter & Gamble Co's (PG.N) acquisition of Gilette, which he said reopened the M&A market in 2005.

"It feels like a typical M&A recovery; maybe not as robust as it was in the mid 2000s or 1995-1996, but based on our backlog and what we're seeing in the market, activity levels are definitely improving," Leaman said.

JAPAN, MIDDLE EAST WEIGH NEAR-TERM

Still, conflict in the Middle East and the crisis created by the earthquake and tsunami in Japan could curtail dealmaking in the short-term.

"The overall year should be up, but these are very significant and serious events, and the kind of volatility they are causing (will) have some effect" on M&A discussions, said Robert Kindler, Morgan Stanley's (MS.N) global head of M&A.

Indeed, United Arab Emirates telecommunications company Etisalat (ETEL.AD) scrapped its $12 billion bid for a controlling stake in Kuwaiti rival Zain (ZAIN.KW) last week, citing unrest in the region as one of its reasons.

State-owned China Guangdong Nuclear Power may cut its offer for uranium miner Kalahari Minerals in light of Japan's nuclear crisis and lending banks are unwilling to underwrite Bain's $3.4 billion buyout of Japanese restaurant chain Skylark.

Mergers in the Asia Pacific region have reached $89 billion so far this year, up 25 percent from the year-earlier period.

Giuseppe Monarchi, head of M&A for Europe, Middle East and Africa at Credit Suisse, singled out opportunistic deals as more likely to be affected by events.

"M&A is not a decision you take lightly in any event. This is more likely to have an impact on more opportunistic deals, with a shorter-term focus, than those based on long-term strategic rationale," Monarchi said.

Rising oil prices could also have a cooling effect on near-term M&A, according to Stephen Trauber, global head of Energy at Citigroup Inc (C.N).

Energy and power, as well as financial institutions, were the busiest sectors for dealmaking in the first quarter, according to Thomson Reuters. Bankers expect these areas to remain active, along with healthcare and technology.

This year has also seen companies focus more on their core businesses and sell or spinoff other units. An example is Sara Lee Corp's (SLE.N) plan to split into two public companies.

Liam Beere, co-head of Europe, Middle East and Africa M&A at UBS AG (UBSN.VX), added that vendors were more motivated to sell than they were 12 to 18 months ago because the price gap between buyers and sellers had narrowed and "assets are more sensibly valued."

European activity was back to a more normal 25 percent of global dealmaking as long-expected transactions such as LVMH Moet Hennessy Louis Vuitton SA's (LVMH.PA) offer for Italian luxury goods company Bulgari SpA (BULG.MI) emerged.

"A transaction involving T-Mobile or Bulgari has long been anticipated. We should brace ourselves for more deals like this, where the question is when and not if a transaction will happen," said Hernan Cristerna, head of M&A for Europe, the Middle East and Africa at JP Morgan.

Vietnam seeks to cure growth ‘addiction’

Sunday, March 20, 2011 | 0 comments

AFP, Hanoi: Vietnam is looking to balance its long-standing ‘addiction’ to growth with measures to stabilise the troubled economy, but its success depends on restoring public confidence, analysts say.
The moves follow months of concern from investors and economists over the Southeast Asian nation’s rising inflation, struggling currency and other economic woes that accompanied the high growth rate.
Strong action began only in February when the State Bank of Vietnam announced the country’s largest currency devaluation in years, a 9.3 per cent adjustment whose scale surprised experts.
The government then proclaimed fighting inflation to be its number one priority, raising key interest rates and setting a series of targets to help stabilise the economy.
‘I think the government’s now sending a much more clear message about giving stability a higher priority compared to growth,’ said Vu Thanh Tu Anh, research director of the Fulbright Economics Teaching Program in Ho Chi Minh City.
Authorities have directed commercial banks to keep growth in credit, or loans, to below 20 per cent this year, with the proportion lent to the ‘non-productive’ property and stocks sectors particularly restrained.
State spending is to be cut by 10 per cent, and the budget deficit reduced to below five per cent. State-owned enterprises, which comprise a key part of the economy but are known for their inefficiency, have been ordered to sell foreign exchange to the banks.
And in a bid to reduce traditional reliance on gold, the government is planning to ban unofficial trade in gold bars and has proposed hefty new fines for black market foreign exchange trading.
Benedict Bingham, country representative for the International Monetary Fund, welcomed the measures, which he said are seen as ‘a fairly decisive shift’, with growth now seemingly ‘subordinated to a focus on macro-stability’.
He said the key would now be convincing foreign exchange markets — which include Vietnamese residents who hold dollars — that the policy would be implemented in a decisive and sustained way.
‘It’s not so much a discipline issue. It’s a confidence issue.’
Observers expect the restoration of public confidence to take some time — with many citizens, such as odd-jobs worker Nguyen Van Thuong, keeping some of their savings as gold bars.
‘It’s the safest shelter,’ said 53-year-old Thuong. ‘I don’t trust Vietnamese dong.’
February’s inflation rate of 12.31 per cent year-on-year was the highest in two years and far above the rates in Vietnam’s neighbours.
The government does not want a repeat of 2008 when annual inflation hit 23 per cent, said Giang Thanh Long, vice dean at the School of Public Policy and Management in Hanoi’s National Economics University.
‘You cannot have high economic growth at the same time as high inflation,’ he said.
While economic expansion has not been discarded, the government wants more of a balance as the side-effects of growth — including rising inequality — become clearer, Long said.
In 1986, communist Vietnam began to turn away from a planned economy to embrace the free market, a policy which led to growth among the fastest in Asia.
GDP growth stood at 6.8 per cent last year and the ruling Communist Party expects it to continue at seven to eight per cent annually.
Nonetheless the expansion has led to a complicated mix of challenges, including a trade deficit estimated at $12.4 billion last year.
Citing weaknesses in the banking system, inflation and other economic risks, international ratings agencies last year lowered Vietnam’s sovereign debt ratings.
During the recent five-year congress, the Communist Party announced an overhaul of its business growth model.
The nation must ‘restructure the economy to speed up industrialisation and modernisation with fast and sustainable development,’ Communist Party leader Nong Duc Manh said.
The government’s shift to stability from an ‘addiction’ to growth is welcome, but only time will tell if authorities are ‘willing to stick to this new marching order’, said a foreign business analyst who declined to be named.
Anh, of the Fulbright Program, said the government had done a good job in publicising its plan but he was sceptical of chances for success.
‘The key thing now is implementation and... we don’t see a clear vision, a clear picture’, said Anh.

Gates, Buffett bid to open rich Indians’ wallets

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AFP, New Delhi: Two of the world’s richest men, software pioneer Bill Gates and investor Warren Buffett, are set to visit India this week to persuade the country’s super-wealthy to part with more of their cash.
The pair made headlines last year when they said they would seek to get fellow billionaires to commit half of their wealth to good causes as part of the ‘Giving Pledge’. So far, 59 rich Americans have taken the pledge.
But while charitable giving is widespread in countries such as the United States, it is less well established in developing nations such as India and China, where Gates and Buffett went in September on a similar mission.
The former, in an open letter in the Times of India newspaper, said he and Buffett plan to sit down with some of India’s affluent business leaders ‘to talk about our own enthusiasm for philanthropy and the impact it can have’.
‘We come not as preachers, but more like cheerleaders,’ said Gates, just a few months on from the billionaires’ high-profile China trip, where they wined and dined the country’s richest industrialists to promote charity.
Fast-growing India is home to some of Asia’s richest billionaires, making it ‘an exciting time to be having this conversation,’ added Gates.
But while there is no shortage of billionaires for Gates and Buffett to meet, it may not be the easiest of missions.
India’s booming economy — growing by nine per cent annually — has 55 billionaires with an average net worth of $4.5 billion, according to Forbes, the third-largest pool of billionaires after the United States and China.
Yet rich Indians are often criticised by local media for a reluctance to part with their cash.
In fact, India’s wealthiest social class has the lowest level of giving — just 1.6 per cent of household income compared to 1.9 per cent for the country’s middle classes, according to global consultancy Bain and Company.
A $2 billion education donation by high-tech tycoon Azim Premji late last year was a rare exception — and shone a harsh light on the patchy philanthropic track record of India’s wealthy.
Arpan Sheth, a consultant for Bain who is author of a recent overview of Indian philanthropy, said the country’s charitable potential is huge.
‘Should individuals (in India), particularly the well-off, be giving more? And can they afford to make more and larger donations? The answer to both questions is, ‘Absolutely yes’,’ he said.
Philanthropic activity has failed to keep pace with growing riches, partly, Sheth believes, because the rapid accumulation of individual wealth is still a relatively new phenomenon.
‘We have a history of scarcity and so it takes a while to build confidence that the future will be better on a sustainable basis and let go of newly earned wealth,’ Sheth told the AFP.
There is also a suspicion that charities are badly managed and so donors fear their contributions ‘won’t be put to good use or are at risk of being misappropriated,’ Sheth added.
The Bill and Melinda Gates Foundation, the charity set up by the software tycoon and his wife, was tight-lipped about the visit, citing security.
‘The visit of Bill and Melinda Gates starts Tuesday,’ said a spokesman.
He declined to give details about who they would meet but India’s Business Standard newspaper reported Gates, his wife and Buffett would hold talks with the country’s wealthy on Thursday in New Delhi.
There is no doubt that the need to help India’s teeming poor is glaring.
Some 42 per cent of Indians, or 455 million people, live on less than $1.25 a day, according to the World Bank. India’s statistics on health, infant mortality and malnutrition are worse than those for some countries in sub-Saharan Africa.
There are signs, though, that India’s billionaires are waking up to the urgent need to bridge the yawning gap between rich and poor in the country of 1.2 billion people.
India’s richest man Mukesh Ambani, who heads the country’s largest private company Reliance Industries, warned earlier this month that ‘there will be no peace’ if people are ‘discontented, deprived, unhappy and therefore angry.’

Europe polishes response to year-long debt crisis

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AFP, Brussels: Europe’s leaders put the finishing touches to their response to a year-long debt crisis this week, as financial strain in Portugal threatens a third bailout after Greece and Ireland.
Heads of state and government of the 27 European Union states meet Thursday and Friday in Brussels, with the situation in Libya, and nuclear safety issues in the wake of Japan’s quake and tsunami severely damaging a reactor, high on the agenda.
Their remaining focus will be on meeting a self-imposed deadline for a ‘comprehensive’ response to a roller-coaster euro debt crisis aimed at soothing nervous money markets.
The European Union’s economic in-tray is full.
The summit must strengthen an existing 440-billion-euro temporary rescue fund, while agreeing a change to the EU treaty rule-book to enable the creation of a 500-billion-euro permanent fund from 2013, the European Stability Mechanism.
To avoid future bailouts, eurozone nations want to deepen coordination of economic policies and create new sanctions to punish countries that exceeded debt limits.
The European Parliament will vote on Thursday on the treaty change, but a staggering 2,000-plus amendments lodged by MEPs to make sanctions against debt offenders more automatic means it may be difficult to meet the June target-date for adoption of the legislation on economic governance.
A eurozone leaders summit on March 11 saw countries most directly concerned agree to increase funding to the temporary mechanism in order to make the full 440 billion euros available to countries in trouble. Currently almost half is held back as a guarantee to keep borrowing rates down.
They also agreed to allow the fund to buy bonds directly from governments in need of finance, although only within the straitjacket of a bailout.
This left the European Central Bank unhappy. It ECB reluctantly took on the role of supporting struggling eurozone countries by buying billions of euros of their bonds on secondary markets to keep interest rates down, and wanted to hand that role to the ESM
Eurozone leaders also decided to reduce the rate of interest charged Greece on its bailout loans and lengthened the repayment period, in principle making support cheaper for all countries faced with a financial emergency.
But a row with Ireland over its low corporate tax rate meant there were no favours for Dublin — a question sure to return to the summit agenda.
More generally, leaders also set out guidelines on economic indicators to be used to benchmark eurozone nations to improve and better harmonise their economic competitiveness.
The widely varying levels of competitiveness between countries has also led to strains over adopting appropriate policies for the eurozone.
European trade unions are planning protests on Thursday to decry the biting austerity programmes imposed by governments in the wake of the debt crisis.
Ahead of the March 24-25 summit, finance ministers will use an extraordinary meeting on Monday to try to settle remaining issues.
Time is running out after a period of relative calm, with Portugal struggling after a downgrade by the influential Moody’s credit rating agency and facing a growing likelihood of early elections as the opposition opposes a new austerity programme.
Britain, the Netherlands, Sweden, Denmark, Finland, Estonia, Poland, Lithuania and Latvia, meanwhile want to prioritise a real opening-up of the EU economy, the world’s largest tariff-free area with 500 million consumers and 12 trillion euros of economic activity.
Removing restrictions, accelerating free-trade deals with India, Canada, Japan, Mercosur and the Asian nations, as well as deepening economic integration with non-EU eastern European and southern Mediterranean nations is their prescription.

British budget to focus on recovery amid cuts

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AFP, London: Britain’s government unveils its annual budget Wednesday, expected to focus on nurturing economic growth in the face of deep spending cuts and tax hikes aimed at slashing the nations’ huge deficit.
Finance minister George Osborne unveils his 2011/2012 tax and spend plans amid fears that his drastic belt-tightening measures could tip Britain back into recession.
Prime minister David Cameron’s Conservative-Liberal Democrat coalition, which rose to power in May 2010, has sought to slash a record public deficit that it inherited from the previous Labour administration.
Chancellor of the Exchequer Osborne wasted no time in delivering economic pain, via an emergency budget last year amid intense concern on global markets over sky-high levels of debt in the eurozone.
Although Britain is not a member of the eurozone, much of its trade is with members of the single bloc.
‘Last year’s emergency budget was a rescue mission, bringing us back from the brink of fiscal disaster and we will stick to the course that we have set out,’ Osborne said earlier this week.
‘The mission of this year’s budget will be to move from rescue to reform, because if we want Britain to succeed in the new global economy and we want to create the high-quality jobs of the future, then we need to overcome some of the deep-rooted and long-standing weaknesses of the British economy.’
He added: ‘We have already made a strong start, with reform of education, welfare and energy; new investment in science; and setting out a clear path towards a more competitive tax system.
‘Next week’s budget will mark the next phase of our plan for growth. The foundation of that plan must be fiscal responsibility.’
Ahead of the budget, Osborne was comforted by supportive data and praise from the Organisation for Economic Cooperation and Development and Fitch Ratings over his swift action to slash state borrowing.
However, some economists remain sceptical over Osborne’s ability to focus on growth in this week’s budget.
‘We would expect that the budget will be packaged as a ‘Budget for Growth’,’ said Investec economist Philip Shaw. ‘Whether it contains any measures that make a material difference is debatable.
‘I would imagine that the government got the bad news out of the way early (last year) and would want to avoid any further tightening, especially given the extent of the clawback over the next five years.
‘I am sceptical that this will be a great reforming budget—although what the chancellor announces (regarding) a fuel stabiliser will be interesting,’ he added.
Speculation is mounting that Osborne could introduce a ‘fuel stabiliser’ measure, whereby petrol taxation would be proportionate to the level of global oil prices — which remain elevated amid Middle East unrest.
Other economists also cast doubt on whether Osborne would have enough room to get the recovery back on track.
‘With room for fiscal manoeuvre seriously constrained, any efforts aimed at stimulating economic growth will necessarily have to come from reform,’ said Howard Archer at IHS Global Insight.
Questioned about the possibility of more austerity measures, he added: ‘I think the previous budget and spending review removed the sting. He will stick to the course set out—keep with the spending cuts announced and the tax measures announced.’
Britain’s independent fiscal watchdog, the Office for Budget Responsibility, will also publish the latest official forecasts for UK economic growth and state borrowing on Wednesday.
Under last November’s predictions, the OBR forecasts gross domestic product growth of 2.1 per cent this year, 2.6 per cent in 2012 and 2.9 per cent in 2013.
Public state borrowing, meanwhile, was predicted to drop from 148.5 billion pounds in 2010, to just 18 billion pounds by 2015.
However, the UK economy shrank by a worse-than-expected 0.6 per cent in the fourth quarter of 2010.
That stoked fears that austerity measures could help push the economy back into a ‘double dip’ or second phase of recession, after a record downturn that ended in late 2009.
But recent data indicated the British economy is improving compared with the final quarter of 2010.
Manufacturing output expanded in January at the fastest annual rate for 16 years, while the nation’s trade-in-goods deficit narrowed by more than expected as exports hit a record high.

After lean times, Greek tourism eyes crisis rebound

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AFP, Athens: After two lean seasons and a year marred by austerity protests, Greek tourism operators expect a rebound in 2011 with the global economy in recovery and unrest in North Africa turning demand elsewhere.
And although visitors avoiding Egypt and Tunisia may not necessarily flock to Greece—which has troubles of its own from an unpopular economic overhaul—the extra demand is enough for the entire region, industry representatives said.
‘As an all-year destination, Spain is most likely to gain Egypt’s market, followed by Turkey,’ says Yiannis Papadakis, deputy chairman of the Hellenic association of travel and tourist agencies (Hatta).
‘But we also stand to benefit as there will be a lack of availability. Turkey is already between 80 and 85 per cent booked and will be fully booked in about two months,’ he told AFP.
Early booking data from key European target markets—Germany, Britain, France and Russia—look promising and family travel is shying away from former favourite destinations in North Africa and the Middle East that have been hit with political turmoil.
‘Bookings from Germany are up eight per cent, Britain 12 per cent and Russia by over 20 per cent while France is also seeing a two-digit rise,’ says Andreas Andreadis, head of the Panhellenic confederation of hoteliers (POX).
‘They were already rising from January before events in North Africa unfolded as these (European) countries have positive growth rates,’ he added.
‘It’s a normal rebound. This time last year we were a world news story. Now we no longer feature in negative headlines,’ Andreadis said.
Official data in January showed that foreign arrivals in Greece in the first nine months of 2010 had risen by 1.5 per cent despite the country’s economic woes and waves of frequently violent protests in Athens and Thessaloniki.
In May, three people died in an Athens bank that was firebombed during a protest.
‘Events in May were disastrous, bookings for the entire month were frozen,’ Andreadis said.
‘We still have two critical months ahead of us, so it’s still too early to say how the season will play out.’
Unions have already held a general strike this year against sweeping wage and pension cuts mandated by the EU and the International Monetary Fund after they rescued Greece from imminent bankruptcy with a 110-billion-euro ($154-billion) loan. Another seven national shutdowns were organised last year.
Some of last year’s demonstrations against measures by the Socialist government to deal with an unprecedented debt crisis specifically targeted tourism-related infrastructure including hotels, the main port of Piraeus and the Acropolis, Greece’s most emblematic monument.
At the time, the government offered to compensate travellers stranded in the country after the strikes and protests threatened to sink the season.
Residents of the popular island of Rhodes even took matters into their own hands, banning striking sailors from their harbour and dispatching flower-toting delegations to welcome incoming cruise ship passengers.
Price cuts by operators limited the damage but caused a revenue blow.
The Bank of Greece has said tourism takings were down by 7.3 per cent to 9.45 billion euros ($13.2 billion) in the period to November.
To boost flight traffic, the government this week waived fees at all state airports except Athens International Airport from April 1 to December 31.
Tourism generates about 18 per cent of Greece’s gross domestic product.
Hatta’s Papadakis said operators had been lowering their prices at the last minute for the last two years in order to elicit demand.
Hoteliers in particular saw their takings go down by 13 per cent in 2009 and a by another 7 per cent in 2010, Andreadis added.
‘A room priced at 50 euros would be reduced to 30 euros,’ Papadakis said. ‘That’s not going to happen this year’.

Production at CUFL suspended

Saturday, March 19, 2011 | 0 comments

Production at Chittagong Urea Fertiliser Company Limited was suspended for an indefinite period on Thursday evening due to non supply of gas.
The country’s biggest fertiliser factory suspended production at 7.45 PM on March 17, CUFL sources said.
They said that due to acute gas crisis, the government decided to suspend gas supply to CUFL and divert it to Power Development Board’s gas fired power plants.
The objective, they said, was to improve power supply in summer.
Suspension of production at CUFL would enable the government to divert the gas supply to the power plants, said officials.
Residents said that they expected power supply to improve and the nagging load shedding in the port city to go following the latest government move.
Entrepreneurs said that their losses were piling up as several industries and factories they ha set up in the port city could not go into production for long due to an acute shortage of gas supply.
A number of gas fired power plants in Chittagong also remained out of production due to non supply of gas, said energy officials.
Officials said that CUFL had been suffering losses n recent years as its annual output dropped to 1.50 lakh tonnes from six lakh tonnes due to inadequate and erratic supply of gas.
They also said that various costly equipment of CUFL, including its turbine generator, heat exchanger, reformers and the urea reactor sustained damage due to corrosion.
They said that the fertiliser factory got only a fraction of 51 million cubic feet of gas it needed to remain in full production.
Read the original story on the daily New Age

Non-boiled rice OMS pushes up parboiled coarse rice price

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The price of parboiled course rice, consumed largely by low-income people, has increased unusually before the boro harvest as the government sold non-boiled rice through its open market sales network in the past week, market people said.
Rice prices showed a declining trend in two or three weeks as boro harvest was nearing but in the past week, rice prices marked a fresh uptrend.
‘As non-boiled rice was sold in the week in some southern districts from OMS outlets, the demand for parboiled coarse rice increased, pushing up its price,’ said Pradyut Sarker, a trader in Dinajpur. Pradyut supplies rice in bulk to wholesalers in Dhaka and elsewhere.
On the wholesale market, the price of parboiled coarse rice increased by Tk 25–35 a maund (37.3kg) in the period. Retailers in the capital increased the price by Tk 1-2 a kilogram.
‘Traditionally, the poor people do not eat cooked non-boiled rice and therefore they returned to the market in the past week, pushing up the demand and prices of coarse rice,’ said Abul Hossain, a wholesaler at Santahar in Bogra.
But for some areas in Chittagong and Sylhet, people in whole of Bangladesh usually consume parboiled rice.
In its import drive, the government a few months ago procured a significant quantity of non-boiled rice as this category is cheaper.
Rice traders, meanwhile, said a fresh increase in rice prices is a temporary phenomenon and they said rice prices would now increase in the coming weeks.
They said that the early boro harvest, the largest rice crop, is set begin by mid-April.
Although boro harvest usually peaks up after mid-April, in some low-lying areas, early boro harvest begins after mid-March.
Rice prices marked a sharp increase in the last quarter of 2010 as the relatively poor forward stocks from the last boro harvest kept the market shaky.
High rice prices on the international market and limited availability, as Indian stopped export, moreover, held back the Bangladesh government and private sector importers from procuring enough stocks.
Read the original story on the daily New Age

Bangladesh OMS (Open market sale) photos

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