RSS Feed (xml)
Brazil and China have been praised for their efforts to tackle
hunger, in a development charity's report released to coincide with
UN World Food Day. But the ActionAid report criticises India and
others countries for not doing enough to alleviate the problem. The
agency also ranked rich countries, saying Luxembourg is trying
hardest to end global hunger, while the US and New Zealand rank
bottom. Studies estimate that one billion people are malnourished
globally. That figure, given in studies by a number of think tanks
and aid agencies, represents roughly one in seven of the world's
population. ActionAid's report, Hunger Free, says hunger is " a choice
that we make, not a force of nature". "Hunger begins with inequality,"
it says, and then grows because of "perverse policies that treat
food purely as a commodity, not a right". "It is because of these
policies that most developing countries no longer grow enough to
feed themselves, and that their farmers are amongst the hungriest and
poorest people in the world," says ActionAid. 'Unacceptable' Among the
developing countries ranked, Brazil wins the top spot, with the aid
agency praising President Luiz Inacio Lula da Silva's support for
land reform and community kitchens for the poor. ActionAid said
Brazil's success shows "what can be achieved when the state has both
resources and political will to tackle hunger". China is also praised
for cutting the number of hungry by 58 million in 10 years through
strong state support for smallholder farmers. But the report
criticises economically liberal India where, it says, 30 million
people have been added to the ranks of the hungry since the mid- 1990
s and 46 % of children are underweight. It says hunger exists in India
not because there is insufficient food, but because people cannot
access it, and that the exploitation of natural resources has led to
"horrific displacements" of people, pushing many into poverty. "When
people are already on the brink of starvation this is simply
unacceptable," it says. The report said some progress had been made,
with a scheme to protect rural employment in the case of drought, but
it needed to be implemented more effectively. Neighbouring Bangladesh
is praised for reducing the number of chronically food-insecure
people from 40 million to 27 million in the past 10 years and for
improving childhood nutrition in the past two decades. But the report
says Bangladesh has a long way to go to reduce overall malnutrition
and build a sustainable agricultural system. " This scandal could
easily be ended if all governments took determined action " Anne
Jellema, Action Aid The Democratic Republic of Congo is at the bottom
of the list, with 76 % of the population listed "chronically hungry".
The cost of foods is growing in the country, there has been very low
investment in agriculture and the government offers no social
protection. Robert Dekker, the World Food Programme's ( WFP) DR Congo
director, told the BBC that Congolese people live almost exclusively
on a diet of cassava flour, which is low in nutritional value. He
said health experts recommend adults eat 2 , 100 kilocalories a day
for a healthy diet but in Congo the average is 1 ,650 a day. The
BBC's Tomas Fessy, in the capital Kinshasa, says decades of war and
neglect have meant there is no proper agricultural infrastructure in
the country, while a poor road system makes it hard for people to
reach food supplies. In Ethiopia, Action Aid says famine is "once
again stalking" the country, as a result of continuing drought, a
growing population and damaging land policies. Although the
government has begun to introduce reforms, 7.5 million Ethiopians
are classed as "food insecure". Biofuel 'invasion' ActionAid also
assessed richer, developed countries, praising those that have
invested in agriculture in the developing world but criticising
others that have promoted biofuels which, the report says, have
displaced food crops. It says Tanzania, Mozambique, Ghana and
Ethiopia have seen an "invasion" of agrofuel producers from the West,
using up land that could be used to grow food. The rankings are
weighted to account for what ActionAid calls effort and progress, not
just outcomes - that is how the winner in the rich country list is
tiny Luxembourg, with all the Nordic countries close behind. New
Zealand is at the bottom of the rich country list, accused of making
particularly harsh cuts in its official aid to agriculture. And the
US is second from last, described as " miserly" in its aid to
developing world farmers. "The US owes a huge climate debt to
developing countries and it must not delay in agreeing to find the
finance to help developing countries adapt to climate change, and in
signing up to a just global deal," said the report. ActionAid said
the level of hunger in the world is "perhaps one of the most shameful
achievements of recent history" and that there is no reason for
anyone to go without food. "Every six seconds a child dies from
hunger," said the charity's policy director, Anne Jellema. "This
scandal could easily be ended if all governments took determined
action."
Troubleshooters lead loan review
The government has appointed two troubleshooters to lead a review of
student loans problems, which have left tens of thousands waiting
for funds. Higher Education Minister David Lammy told MPs he was
sorry students and their families had been worried and frustrated by
poor customer service. Two independent experts have been appointed
to head an internal review into the problems in loan applications.
The Tories say it is a shambles causing " enormous distress to many
students". They tabled a debate in the Commons on the issue, after
delays in the processing of loan applications left tens of thousands
of students without their full loans and grants at the start of the
university term. 'Gone wrong' The independent experts are former
London South Bank University vice-chancellor Sir Deian Hopkin and
Bernadette Kenny of HM Revenue and Customs. Mr Lammy said the loans
problems had "had a profoundly regrettable effect on individual
students and their families". The body responsible for organising the
loans - the publicly funded Student Loan Company - had "fallen short
of public expectation" and had announced an internal review, he said.
However, external expertise would allow lessons to be learned, he
said. "The SLC itself is on record acknowledging the need for such an
exercise, but I am determined the process should involve external
challenge and expertise needed to provide a frank assessment of what
went wrong and a series of thorough proposals for the future," said
Mr Lammy. " Something has gone wrong in relation to the Student
Loans Company " David Lammy, Higher Education Minister Until now the
government had been playing down talk of problems. Mr Lammy told MPs
Labour's commitment to higher education was one of the nation's
"great success stories", but added: "We do not pretend that nothing
ever goes wrong. "Something has gone wrong in relation to the Student
Loans Company," he said. Shadow higher education minister David
Willetts said there was "widespread and deep concern" about the
financial uncertainty for students caused by the new system of loan
applications. This is the first year that students in England have
had to apply directly to the SLC instead of going through their local
councils. " Ministers have been trying to avoid responsibility for
this by hiding behind the Student Loans Company " David Willetts,
Conservatives This applies only to first year students and it is they
who have been most affected by the problems. Mr Willetts said the
Tories had called a debate on the issue at the "first opportunity"
once MPs returned to Westminster. "It is a shambles and it is causing
enormous distress to many students," he said. "Ministers have been
trying to avoid responsibility for this by hiding behind the Student
Loans Company." He said MPs had been hearing from many constituents -
students and their families - who were experiencing problems and
facing hardship. Students' complaints The SLC maintains it has dealt
with more applications than it had at this time last year, but has
apologised for the difficulties people have had in getting through on
help lines. Updating figures on students waiting to have funding
approved, David Lammy said 77 ,000 applications were still "in
processing" and 71 ,200 were not eligible or had been withdrawn. The
SLC has pledged that all students who applied "on time" will have
received all their loans and grants by the end of October. BBC News
has received hundreds of emails from students and their families.
Some complain that the SLC has lost their documents and are now
treating them as late applicants. Others complained about the money
they had to spend calling the SLC help line - because the main line
advertised was an 0845 number - a matter raised in the Commons by
the Conservatives. 'Lost keys' comments For the Liberal Democrats,
Stephen Williams said it was "absolutely vital" that lessons were
learned so there was no repeat of these problems next year. He added:
"We know universities are able to be flexible over hall fees but what
about the students who are having to pay private landlords? What
about the students who are having to pay rental deposits? "I am
particularly concerned about the non- traditional students who have
accessed university for the first time." He said such students were
the most likely to drop out because of financial worries. Mr Williams
also attacked comments by Derek Ross, deputy chief executive of the
SLC, who compared the loss of students' documentation to losing a set
of car keys. The comments should be withdrawn and he should
apologise, Mr Williams said. National Union of Students President Wes
Streeting said he was "relieved" the two independent figures had been
appointed to the review. "I hope this review will lead to a full and
frank analysis of this shambles and that the management of the SLC
will be held to account for a fiasco that has left hundreds of
thousands affected by late payments, lost documentation and a
miserable start to their first term at university," he said.
student loans problems, which have left tens of thousands waiting
for funds. Higher Education Minister David Lammy told MPs he was
sorry students and their families had been worried and frustrated by
poor customer service. Two independent experts have been appointed
to head an internal review into the problems in loan applications.
The Tories say it is a shambles causing " enormous distress to many
students". They tabled a debate in the Commons on the issue, after
delays in the processing of loan applications left tens of thousands
of students without their full loans and grants at the start of the
university term. 'Gone wrong' The independent experts are former
London South Bank University vice-chancellor Sir Deian Hopkin and
Bernadette Kenny of HM Revenue and Customs. Mr Lammy said the loans
problems had "had a profoundly regrettable effect on individual
students and their families". The body responsible for organising the
loans - the publicly funded Student Loan Company - had "fallen short
of public expectation" and had announced an internal review, he said.
However, external expertise would allow lessons to be learned, he
said. "The SLC itself is on record acknowledging the need for such an
exercise, but I am determined the process should involve external
challenge and expertise needed to provide a frank assessment of what
went wrong and a series of thorough proposals for the future," said
Mr Lammy. " Something has gone wrong in relation to the Student
Loans Company " David Lammy, Higher Education Minister Until now the
government had been playing down talk of problems. Mr Lammy told MPs
Labour's commitment to higher education was one of the nation's
"great success stories", but added: "We do not pretend that nothing
ever goes wrong. "Something has gone wrong in relation to the Student
Loans Company," he said. Shadow higher education minister David
Willetts said there was "widespread and deep concern" about the
financial uncertainty for students caused by the new system of loan
applications. This is the first year that students in England have
had to apply directly to the SLC instead of going through their local
councils. " Ministers have been trying to avoid responsibility for
this by hiding behind the Student Loans Company " David Willetts,
Conservatives This applies only to first year students and it is they
who have been most affected by the problems. Mr Willetts said the
Tories had called a debate on the issue at the "first opportunity"
once MPs returned to Westminster. "It is a shambles and it is causing
enormous distress to many students," he said. "Ministers have been
trying to avoid responsibility for this by hiding behind the Student
Loans Company." He said MPs had been hearing from many constituents -
students and their families - who were experiencing problems and
facing hardship. Students' complaints The SLC maintains it has dealt
with more applications than it had at this time last year, but has
apologised for the difficulties people have had in getting through on
help lines. Updating figures on students waiting to have funding
approved, David Lammy said 77 ,000 applications were still "in
processing" and 71 ,200 were not eligible or had been withdrawn. The
SLC has pledged that all students who applied "on time" will have
received all their loans and grants by the end of October. BBC News
has received hundreds of emails from students and their families.
Some complain that the SLC has lost their documents and are now
treating them as late applicants. Others complained about the money
they had to spend calling the SLC help line - because the main line
advertised was an 0845 number - a matter raised in the Commons by
the Conservatives. 'Lost keys' comments For the Liberal Democrats,
Stephen Williams said it was "absolutely vital" that lessons were
learned so there was no repeat of these problems next year. He added:
"We know universities are able to be flexible over hall fees but what
about the students who are having to pay private landlords? What
about the students who are having to pay rental deposits? "I am
particularly concerned about the non- traditional students who have
accessed university for the first time." He said such students were
the most likely to drop out because of financial worries. Mr Williams
also attacked comments by Derek Ross, deputy chief executive of the
SLC, who compared the loss of students' documentation to losing a set
of car keys. The comments should be withdrawn and he should
apologise, Mr Williams said. National Union of Students President Wes
Streeting said he was "relieved" the two independent figures had been
appointed to the review. "I hope this review will lead to a full and
frank analysis of this shambles and that the management of the SLC
will be held to account for a fiasco that has left hundreds of
thousands affected by late payments, lost documentation and a
miserable start to their first term at university," he said.
Sony Ericsson makes another loss
Mobile phone manufacturer Sony Ericsson has reported a
smaller-than-expected three-month loss. The company owned by Sweden's
Ericsson and Japan's Sony lost 164 m euros ($245 m; £150 m) from
July to September. The losses were better than the net loss of 213 m
euros made in the previous three months, but wider than the 25 m
euros in the third quarter of 2008. The company said the figures were
starting to show the effects of its transformation programme. It
announced 2 ,000 job cuts in April in addition to the 2 ,000 jobs it
had cut the previous year. Fresh investment It expects to see the full
value of its programme to cut 880 m euros a year from its costs in the
second half of next year. Its sales in the third quarter were up 2 %
from the previous quarter, but down 45 % compared with the same
period last year. In its statement, Sony Ericsson said it would be
receiving fresh investment backed by its owner companies. It
predicted that the global mobile phone handset market will contract
10 % in 2009 from the 1 ,190 million sold in 2008. On Thursday, its
big rival Nokia reported a net loss of 913 m euros for the same
period, hit by falling sales and one-off items.
smaller-than-expected three-month loss. The company owned by Sweden's
Ericsson and Japan's Sony lost 164 m euros ($245 m; £150 m) from
July to September. The losses were better than the net loss of 213 m
euros made in the previous three months, but wider than the 25 m
euros in the third quarter of 2008. The company said the figures were
starting to show the effects of its transformation programme. It
announced 2 ,000 job cuts in April in addition to the 2 ,000 jobs it
had cut the previous year. Fresh investment It expects to see the full
value of its programme to cut 880 m euros a year from its costs in the
second half of next year. Its sales in the third quarter were up 2 %
from the previous quarter, but down 45 % compared with the same
period last year. In its statement, Sony Ericsson said it would be
receiving fresh investment backed by its owner companies. It
predicted that the global mobile phone handset market will contract
10 % in 2009 from the 1 ,190 million sold in 2008. On Thursday, its
big rival Nokia reported a net loss of 913 m euros for the same
period, hit by falling sales and one-off items.
Google sees record $1.6 bn profit
Google has reported its highest quarterly profit, suggesting that the
internet advertising market is bouncing back from the recession.
Google reported net profit of $1.64 bn (£1 bn) between July and
September, up 27 % on the same period a year ago. "The worst of the
recession is clearly behind us," said Google chief executive Eric
Schmidt. US computer giant IBM also reported strong profits of $3.2
bn for the period, up 14 % on a year earlier. The company also
delivered a more optimistic forecast for full year earnings.
Management said they too were seeing some stabilisation in the
overall economic environment. 'New advertising' Revenue at Google for
the three-month period came in at $4.38 bn, which was well ahead of
analysts' expectations of $4.24 bn. " Google has no competition.
Yahoo is withering on the vine and [Microsoft's] Bing is too tiny
now " Coin Gillis, Brigantine Advisors "Because of what we have
seen, we now have the confidence to be optimistic about our future, "
said Mr Schmidt. The company also announced two new initiatives,
including the sales of electronic books through a new electronic
editions service. This would be in direct competition with Amazon and
Apple. Google has also agreed a deal to broadcast programmes from the
UK's Channel 4 on its YouTube site. "People think of online video
when they think of YouTube, but now YouTube is trying to bring in
movies and longer-form content, which will let [ Google] bring in new
advertising that is going to be very profitable for them," said
respected technology blogger Robert Scoble. 'Spending money' The
internet search engine has weathered the recession better than other
advertising- dependent companies, and it was widely expected to be
one of the first beneficiaries of an economic recovery. "Google has
no competition. Yahoo is withering on the vine and [Microsoft's] Bing
is too tiny now," said Coin Gillis, senior analyst at Brigantine
Advisors. "They did great on every single metric. We think this is
sustainable." He said the message from the Google management was loud
and clear: "Big brand advertisers are back and they are spending
money." Google's shares rose $16.44 , or 3.1 %, to $ 546.35 in
extended trading on Thursday.
internet advertising market is bouncing back from the recession.
Google reported net profit of $1.64 bn (£1 bn) between July and
September, up 27 % on the same period a year ago. "The worst of the
recession is clearly behind us," said Google chief executive Eric
Schmidt. US computer giant IBM also reported strong profits of $3.2
bn for the period, up 14 % on a year earlier. The company also
delivered a more optimistic forecast for full year earnings.
Management said they too were seeing some stabilisation in the
overall economic environment. 'New advertising' Revenue at Google for
the three-month period came in at $4.38 bn, which was well ahead of
analysts' expectations of $4.24 bn. " Google has no competition.
Yahoo is withering on the vine and [Microsoft's] Bing is too tiny
now " Coin Gillis, Brigantine Advisors "Because of what we have
seen, we now have the confidence to be optimistic about our future, "
said Mr Schmidt. The company also announced two new initiatives,
including the sales of electronic books through a new electronic
editions service. This would be in direct competition with Amazon and
Apple. Google has also agreed a deal to broadcast programmes from the
UK's Channel 4 on its YouTube site. "People think of online video
when they think of YouTube, but now YouTube is trying to bring in
movies and longer-form content, which will let [ Google] bring in new
advertising that is going to be very profitable for them," said
respected technology blogger Robert Scoble. 'Spending money' The
internet search engine has weathered the recession better than other
advertising- dependent companies, and it was widely expected to be
one of the first beneficiaries of an economic recovery. "Google has
no competition. Yahoo is withering on the vine and [Microsoft's] Bing
is too tiny now," said Coin Gillis, senior analyst at Brigantine
Advisors. "They did great on every single metric. We think this is
sustainable." He said the message from the Google management was loud
and clear: "Big brand advertisers are back and they are spending
money." Google's shares rose $16.44 , or 3.1 %, to $ 546.35 in
extended trading on Thursday.
Opel's German aid may break rules
The European Commission has warned that Germany's planned state aid
for Opel may breach competition rules, raising the prospect of its
sale being halted. Brussels said there were "significant indications"
Berlin pledged the 4.5 bn euro ($6.7 bn; £4 bn) aid only if its
preferred buyer for Opel was chosen. US firm General Motors (GM) said
last month it would sell Opel to Canada's Magna, Berlin's preferred
buyer. The Commission said GM should now be allowed to reconsider the
sale. Although GM picked Magna and its Russian backer Sherbank last
month to buy Opel and Opel's UK brand Vauxhall, the deal has yet to
be concluded. Neither the German government nor Magna has yet given
any reaction to the Commission's comments. The UK's Department for
Business, Innovation & Skills also declined to comment. However,
Chris Preuss, GM's global vice- president for communications, said
that if the proposed sale to Magna "couldn't pass EU regulations,
we'd have no recourse but to reconsider the deal". "Right now though
we are working on a defined agreement with Magna and it's a
complicated process with a lot of dialogue," he added. "There are a
lot of discussions going on at the moment, and there's a lot of
detail to be ironed out between the German government and the EU."
'Concerns' The Commission said that the concerns were raised by EU
Competition Commissioner Neelie Kroes in a letter to German Economy
Minister Karl Theodor zu Guttenberg. ANALYSIS BBC business reporter
Joe Lynam The comments by Neelie Kroes will be a major potential
irritant for the freshly re-elected German government of Angela
Merkel. A few weeks after confirming Magna as the buyer of
Opel/Vauxhall, the Commission looks as if it may insist that the
bidding be re-opened. This is due to what it sees as bias on the part
of the Berlin government in favour of Magna and against all other
bidders. Having already dragged on for months, the trauma of not
knowing who will buy Opel/ Vauxhall will continue for the thousands of
workers anxious to find out who their new bosses will be. Many of
whom will certainly lose their jobs at the end of this process either
way. It also throws up the prospect of a very powerful face-off
between the all-powerful EU Commission and the all-conquering German
car industry and its friends in Berlin. It said that in the letter
she pointed to " significant indications that aid promised by German
government to New Opel was subject to the precondition that a specific
bidder, Magna/ Sberbank, was selected". The Commission added that Ms
Kroes "indicated that such a precondition for the aid would be
incompatible with... state aid and internal market rules".
"Commissioner Kroes explained that GM and the Opel Trust should be
given the opportunity to reconsider the outcome of the bidding
process on the basis of firm written assurances by the German
authorities that the aid would be available, irrespective of the
choice of investor or plan," said the Commission. Magna, a car parts
firm, and its Russian backer Sherbank, were chosen by GM ahead of
Belgian investment fund RHJ, Italy's Fiat, and China's Beijing
Automotive Industry Holding. Independent car industry analyst Robin
Roberts said it would be very interesting to see how the story now
developed. "Everybody is aware of the rules surrounding European aid,
and anyone - be that a company or a country - that contravenes those
rules can expect to have problems and face the consequences," he
said. Other government fears Both the Belgian and Spanish governments
said last month that they wanted the Commission to study Germany's
role in the sale of Opel. Magna's proposed deal with GM will see it
take a 55 % stake in Opel, with GM keeping 35 % and 10 % going to
employees. Opel currently employs about 50 ,000 people across
Europe, including 5 ,500 at its Vauxhall business in the UK, and 25
,000 in Germany. Magna is proposing 10 ,500 job cuts in total at
Opel, including 4 ,500 in Germany. However, it has indicated that it
wishes to keep open all four of Opel's German plants, while a
factory in Belgium is said to be at risk of closure. Despite Magna
being yet to conclude its takeover of Opel, earlier this week it
secured an agreement with the UK union Unite over job cuts at among
the 5 ,500 workers at the two Vauxhall plants in Ellesmere Port and
Luton. Magna has agreed to limited job loses to 600 people, and only
through voluntary redundancy.
for Opel may breach competition rules, raising the prospect of its
sale being halted. Brussels said there were "significant indications"
Berlin pledged the 4.5 bn euro ($6.7 bn; £4 bn) aid only if its
preferred buyer for Opel was chosen. US firm General Motors (GM) said
last month it would sell Opel to Canada's Magna, Berlin's preferred
buyer. The Commission said GM should now be allowed to reconsider the
sale. Although GM picked Magna and its Russian backer Sherbank last
month to buy Opel and Opel's UK brand Vauxhall, the deal has yet to
be concluded. Neither the German government nor Magna has yet given
any reaction to the Commission's comments. The UK's Department for
Business, Innovation & Skills also declined to comment. However,
Chris Preuss, GM's global vice- president for communications, said
that if the proposed sale to Magna "couldn't pass EU regulations,
we'd have no recourse but to reconsider the deal". "Right now though
we are working on a defined agreement with Magna and it's a
complicated process with a lot of dialogue," he added. "There are a
lot of discussions going on at the moment, and there's a lot of
detail to be ironed out between the German government and the EU."
'Concerns' The Commission said that the concerns were raised by EU
Competition Commissioner Neelie Kroes in a letter to German Economy
Minister Karl Theodor zu Guttenberg. ANALYSIS BBC business reporter
Joe Lynam The comments by Neelie Kroes will be a major potential
irritant for the freshly re-elected German government of Angela
Merkel. A few weeks after confirming Magna as the buyer of
Opel/Vauxhall, the Commission looks as if it may insist that the
bidding be re-opened. This is due to what it sees as bias on the part
of the Berlin government in favour of Magna and against all other
bidders. Having already dragged on for months, the trauma of not
knowing who will buy Opel/ Vauxhall will continue for the thousands of
workers anxious to find out who their new bosses will be. Many of
whom will certainly lose their jobs at the end of this process either
way. It also throws up the prospect of a very powerful face-off
between the all-powerful EU Commission and the all-conquering German
car industry and its friends in Berlin. It said that in the letter
she pointed to " significant indications that aid promised by German
government to New Opel was subject to the precondition that a specific
bidder, Magna/ Sberbank, was selected". The Commission added that Ms
Kroes "indicated that such a precondition for the aid would be
incompatible with... state aid and internal market rules".
"Commissioner Kroes explained that GM and the Opel Trust should be
given the opportunity to reconsider the outcome of the bidding
process on the basis of firm written assurances by the German
authorities that the aid would be available, irrespective of the
choice of investor or plan," said the Commission. Magna, a car parts
firm, and its Russian backer Sherbank, were chosen by GM ahead of
Belgian investment fund RHJ, Italy's Fiat, and China's Beijing
Automotive Industry Holding. Independent car industry analyst Robin
Roberts said it would be very interesting to see how the story now
developed. "Everybody is aware of the rules surrounding European aid,
and anyone - be that a company or a country - that contravenes those
rules can expect to have problems and face the consequences," he
said. Other government fears Both the Belgian and Spanish governments
said last month that they wanted the Commission to study Germany's
role in the sale of Opel. Magna's proposed deal with GM will see it
take a 55 % stake in Opel, with GM keeping 35 % and 10 % going to
employees. Opel currently employs about 50 ,000 people across
Europe, including 5 ,500 at its Vauxhall business in the UK, and 25
,000 in Germany. Magna is proposing 10 ,500 job cuts in total at
Opel, including 4 ,500 in Germany. However, it has indicated that it
wishes to keep open all four of Opel's German plants, while a
factory in Belgium is said to be at risk of closure. Despite Magna
being yet to conclude its takeover of Opel, earlier this week it
secured an agreement with the UK union Unite over job cuts at among
the 5 ,500 workers at the two Vauxhall plants in Ellesmere Port and
Luton. Magna has agreed to limited job loses to 600 people, and only
through voluntary redundancy.
IBM revenue down
US computer giant IBM reported a higher quarterly net profit on
Thursday despite falling sales and delivered a more optimistic
outlook for the full year. IBM, which has weathered the global
economic slowdown better than most major US corporations, said net
profit rose 14 per cent to 13.2 billion dollars, or 2.40 dollars per
share, better than the 2.38 dollars predicted by analysts.
Revenue fell seven per cent in the third quarter to 23.6 billion
dollars compared with the corresponding period a year ago but was one
per cent higher than the previous quarter, IBM said in a statement.
The company raised its forecast for full-year earnings per share to
'at least 9.85 dollars from at least 9.70 dollars' on an improved
outlook for both software and hardware. 'Our long-term strategic
shift to higher-value businesses again enabled us to deliver
outstanding margin, earnings and cash flow growth in the third
quarter,' said IBM chairman, president and chief executive Samuel
Palmisano. 'We also saw improved revenue trends in our business
and share gains in software and hardware,' he said. 'We are
optimistic about 2009 as we again raise our full-year expectations
and we remain well ahead of pace for our 2010 roadmap of 10 dollars
to 11 dollars per share,' Palmisano said. The company said it
signed service contracts worth 11.8 billion dollars in the quarter,
including 13 deals greater than 100 million dollars, a decrease of
seven per cent. IBM said third-quarter revenue for the Americas
fell five per cent to 9.9 billion dollars while revenue for Europe,
the Middle East and Africa was down 12 per cent to 7.8 billion
dillars. Asia-Pacific revenue was flat at 5.2 billion dollars.
Global Technology Services segment revenue decreased four per cent to
9.4 billion dollars while Global Business Services segment revenue
declined 11 per cent to 4.3 billion dollars. IBM said software
revenue declined three per cent to 5.1 billion dollars while systems
and technology segment revenue dropped 12 per cent to 3.9 billion
dollars. IBM said it ended the third quarter with 11.5 billion
dollars of cash on hand. Shares of IBM fell 3.41 per cent in
after-hours electronic trading to 123.61 dollars.
Thursday despite falling sales and delivered a more optimistic
outlook for the full year. IBM, which has weathered the global
economic slowdown better than most major US corporations, said net
profit rose 14 per cent to 13.2 billion dollars, or 2.40 dollars per
share, better than the 2.38 dollars predicted by analysts.
Revenue fell seven per cent in the third quarter to 23.6 billion
dollars compared with the corresponding period a year ago but was one
per cent higher than the previous quarter, IBM said in a statement.
The company raised its forecast for full-year earnings per share to
'at least 9.85 dollars from at least 9.70 dollars' on an improved
outlook for both software and hardware. 'Our long-term strategic
shift to higher-value businesses again enabled us to deliver
outstanding margin, earnings and cash flow growth in the third
quarter,' said IBM chairman, president and chief executive Samuel
Palmisano. 'We also saw improved revenue trends in our business
and share gains in software and hardware,' he said. 'We are
optimistic about 2009 as we again raise our full-year expectations
and we remain well ahead of pace for our 2010 roadmap of 10 dollars
to 11 dollars per share,' Palmisano said. The company said it
signed service contracts worth 11.8 billion dollars in the quarter,
including 13 deals greater than 100 million dollars, a decrease of
seven per cent. IBM said third-quarter revenue for the Americas
fell five per cent to 9.9 billion dollars while revenue for Europe,
the Middle East and Africa was down 12 per cent to 7.8 billion
dillars. Asia-Pacific revenue was flat at 5.2 billion dollars.
Global Technology Services segment revenue decreased four per cent to
9.4 billion dollars while Global Business Services segment revenue
declined 11 per cent to 4.3 billion dollars. IBM said software
revenue declined three per cent to 5.1 billion dollars while systems
and technology segment revenue dropped 12 per cent to 3.9 billion
dollars. IBM said it ended the third quarter with 11.5 billion
dollars of cash on hand. Shares of IBM fell 3.41 per cent in
after-hours electronic trading to 123.61 dollars.
EU executive to stay as caretaker amid treaty malaise
The European Union's powerful executive body is to stay on in a
caretaker role until the future of the Lisbon reform treaty is
resolved, a spokesman said Friday, a fortnight before its mandate
ends. However the European Commission, which draws up legislation
that impacts on the lives of about half a billion Europeans and
polices the application of EU laws, is likely to remain a lame duck
until the future becomes clearer. 'It is clear that from November
1, the situation of the commission will be a situation of managing
current business,' the chief spokesman for the EU's executive arm,
Johannes Laitenberger, told reporters. The EU wants to play a
major role at climate talks in Copenhagen and is working on ways to
mitigate fallout from the economic crisis, but the Lisbon Treaty
stalemate has reduced it to a new bout of institutional navel-gazing.
The treaty, meant to streamline the way the expanding EU makes its
decisions and create new posts, is being blocked by eurosceptic Czech
President Vaclav Klaus, who opposes the text and has delayed signing
it. When asked what work the commission would actually be able to
do in the interim, Laitenberger said: 'We will take care of
everything that has to be taken care of.' 'The commission can and
must do what is necessary. So, that is what is going to happen,' he
said, adding that Brussels would examine carefully whether it is
'necessary' to perform any task. The impasse means that European
Commission President Jose Manuel Barroso, who was last month granted
a second five year term, is unable to nominate a new commission,
because it is unclear what legal basis he should use. Barroso, who
has shown great frustration at Klaus's tactics, 'has often underlined
that this is not a desirable situation. It is a situation that is
exceptional and must by definition be as short as possible,'
Laitenberger said. As president of the European Union executive,
Barroso has significant leverage to influence the legislative
priorities of the commission which next year will have a budget of
138 billion euros (206 billion dollars). Popular opinion of the EU
remains low, with many citizens claiming not to know what the 27-
nation bloc does as well as feeling distanced from the political
elite in Brussels.
caretaker role until the future of the Lisbon reform treaty is
resolved, a spokesman said Friday, a fortnight before its mandate
ends. However the European Commission, which draws up legislation
that impacts on the lives of about half a billion Europeans and
polices the application of EU laws, is likely to remain a lame duck
until the future becomes clearer. 'It is clear that from November
1, the situation of the commission will be a situation of managing
current business,' the chief spokesman for the EU's executive arm,
Johannes Laitenberger, told reporters. The EU wants to play a
major role at climate talks in Copenhagen and is working on ways to
mitigate fallout from the economic crisis, but the Lisbon Treaty
stalemate has reduced it to a new bout of institutional navel-gazing.
The treaty, meant to streamline the way the expanding EU makes its
decisions and create new posts, is being blocked by eurosceptic Czech
President Vaclav Klaus, who opposes the text and has delayed signing
it. When asked what work the commission would actually be able to
do in the interim, Laitenberger said: 'We will take care of
everything that has to be taken care of.' 'The commission can and
must do what is necessary. So, that is what is going to happen,' he
said, adding that Brussels would examine carefully whether it is
'necessary' to perform any task. The impasse means that European
Commission President Jose Manuel Barroso, who was last month granted
a second five year term, is unable to nominate a new commission,
because it is unclear what legal basis he should use. Barroso, who
has shown great frustration at Klaus's tactics, 'has often underlined
that this is not a desirable situation. It is a situation that is
exceptional and must by definition be as short as possible,'
Laitenberger said. As president of the European Union executive,
Barroso has significant leverage to influence the legislative
priorities of the commission which next year will have a budget of
138 billion euros (206 billion dollars). Popular opinion of the EU
remains low, with many citizens claiming not to know what the 27-
nation bloc does as well as feeling distanced from the political
elite in Brussels.
Eurozone trade balance hits record deficit
The eurozone trade balance with the rest of the world collapsed to a
4.0-billion-euro (6.0-billion- dollar) deficit in August from a record
July surplus, official data showed on Friday. The 16 countries
using the single euro currency had a 12.3-billion-euro surplus on
strong exports and flat imports in July, and August's deficit ended a
five-month run of trade surpluses. While those surpluses were
attributed by analysts to an increase in global purchasing power
rather than to a richer and more confident Europe, the effects of a
dollar currently at a 14-month low on currency markets have yet to
be fed into the results. The data therefore represents a
substantial knock to confidence after massive improvement during the
eurozone's climb out of the economic mire over the second and third
quarters of this year. The euro is approaching 1.50 dollars, and
EU policymakers are concerned at the effect an idle US administration
could have on exports from the bloc, in particular within its leading
economy, Germany. Some analysts say US authorities, despite
repeated proclamations in favour of a 'strong dollar,' are happy to
see the US currency weaken, which gives a welcome advantage to US
exports. European Central Bank president Jean-Claude Trichet has
also warned that 'the euro was not created to be a global reserve
currency' among a series of pointed remarks on an issue rising up
the political agenda. 'Eurozone exporters ... will be fervently
hoping that the euro eases back,' said analyst Howard Archer of IHS
Global Insight. The August trade balance for the 27-nation
European Union as a whole, including Britain, also saw a massive
retreat to a deficit of 12.1 billion euros after a revised
0.6-billion-euros surplus in July. However, that was better than
the 28.7 billion euros recorded one year earlier, according to the
figures released by the EU's Eurostat office. Seasonally adjusted
exports from the eurozone fell in August compared to the previous
month by 5.8 per cent and imports by 1.3 per cent. Across the full
bloc, exports dropped by 4.2 per cent and imports by 1.4 per cent.
'Trade data can be very volatile from month to month, so not too
much importance should be covered to one month's data,' Archer
stressed. 'Nevertheless, it is worrying for eurozone recovery
prospects to see that seasonally- adjusted exports plunged by as much
as 5.8 per cent month-on-month in August, which more than wiped out
the gains of the previous two months.' He added that
seasonally-adjusted Eurozone imports falling by 1.3 per cent in
August 'hardly points to marked improvement in domestic demand.'
4.0-billion-euro (6.0-billion- dollar) deficit in August from a record
July surplus, official data showed on Friday. The 16 countries
using the single euro currency had a 12.3-billion-euro surplus on
strong exports and flat imports in July, and August's deficit ended a
five-month run of trade surpluses. While those surpluses were
attributed by analysts to an increase in global purchasing power
rather than to a richer and more confident Europe, the effects of a
dollar currently at a 14-month low on currency markets have yet to
be fed into the results. The data therefore represents a
substantial knock to confidence after massive improvement during the
eurozone's climb out of the economic mire over the second and third
quarters of this year. The euro is approaching 1.50 dollars, and
EU policymakers are concerned at the effect an idle US administration
could have on exports from the bloc, in particular within its leading
economy, Germany. Some analysts say US authorities, despite
repeated proclamations in favour of a 'strong dollar,' are happy to
see the US currency weaken, which gives a welcome advantage to US
exports. European Central Bank president Jean-Claude Trichet has
also warned that 'the euro was not created to be a global reserve
currency' among a series of pointed remarks on an issue rising up
the political agenda. 'Eurozone exporters ... will be fervently
hoping that the euro eases back,' said analyst Howard Archer of IHS
Global Insight. The August trade balance for the 27-nation
European Union as a whole, including Britain, also saw a massive
retreat to a deficit of 12.1 billion euros after a revised
0.6-billion-euros surplus in July. However, that was better than
the 28.7 billion euros recorded one year earlier, according to the
figures released by the EU's Eurostat office. Seasonally adjusted
exports from the eurozone fell in August compared to the previous
month by 5.8 per cent and imports by 1.3 per cent. Across the full
bloc, exports dropped by 4.2 per cent and imports by 1.4 per cent.
'Trade data can be very volatile from month to month, so not too
much importance should be covered to one month's data,' Archer
stressed. 'Nevertheless, it is worrying for eurozone recovery
prospects to see that seasonally- adjusted exports plunged by as much
as 5.8 per cent month-on-month in August, which more than wiped out
the gains of the previous two months.' He added that
seasonally-adjusted Eurozone imports falling by 1.3 per cent in
August 'hardly points to marked improvement in domestic demand.'
US toughens warnings on China’s currency stand
The United States toughened its warning on China Thursday for 'lack
of flexibility' of its yuan currency and for rapidly building up its
foreign reserves, but stopped short of branding Beijing a currency
manipulator. 'Both the rigidity of the renminbi and the
reacceleration of reserve accumulation are serious concerns which
should be corrected to help ensure a stronger, more balanced global
economy,' the US Treasury said. The Treasury's statement came in
its semiannual report to Congress under a law requiring it to
determine whether any foreign economy manipulates its currency
against the US dollar. US lawmakers and several industry groups
have accused China for years of artificially weakening the value of
the yuan, or renminbi, to boost its export competitiveness. The
yuan, which has depreciated 6.9 per cent against the dollar since
February 2009, remains ' undervalued,' the Treasury report said.
China's foreign exchange reserves, already the world's largest, jumped
nearly 20 per cent from a year ago to a record 2.27 trillion dollars
at the end of September, the Chinese central bank said Wednesday.
The language in the Treasury report appeared stronger than in a first
report sent by President Barack Obama's administration to lawmakers
in April, three months after he entered the White House. Treasury
Secretary Timothy Geithner had set off alarms in Beijing when he
charged during his January Senate confirmation hearing that the
president believed China manipulated its currency. Officials later
played down the written statement, saying staff who prepared it had
recycled election campaign speeches. Obama came into office
promising to talk tough with China on a range of issues, including
congressional complaints that China's manipulation of the yuan was
fueling the US trade deficit with the Asian giant. Thursday's
Treasury report said 'no major trading partner of the United States
met the standards' for branding them a currency manipulator for
gaining unfair competitive advantage in international trade. While
14 of 17 currencies studied appreciated against the dollar in the
second quarter of 2009, only the Chinese renminbi remained unchanged
against the dollar, the report found. 'This lack of movement of the
renminbi has contributed to upward pressure on more flexible
currencies in the region,' it said, noting that ' several emerging
markets' in Asia had intervened in the market to slow the pace of
appreciation. China's overall policies played an important role in
anchoring the global economy in 2009 and promoting a reduction in its
current account surplus, the Treasury said. But it noted that the
recent 'lack of flexibility' of the yuan exchange rate and China's
reserves buildup 'risk unwinding some of the progress made in
reducing' global imbalances as the world confronts an economic
crisis. The development was critical as governments prepare to
withdraw stimulus policies and demand by China's trading partners
recovered, according to the report. China has invested a large
part of the reserves in US dollar assets, such as safe but
low-yielding US Treasury bonds, but Beijing has tried to diversify
its investments to improve its returns in the midst of the financial
crisis.
of flexibility' of its yuan currency and for rapidly building up its
foreign reserves, but stopped short of branding Beijing a currency
manipulator. 'Both the rigidity of the renminbi and the
reacceleration of reserve accumulation are serious concerns which
should be corrected to help ensure a stronger, more balanced global
economy,' the US Treasury said. The Treasury's statement came in
its semiannual report to Congress under a law requiring it to
determine whether any foreign economy manipulates its currency
against the US dollar. US lawmakers and several industry groups
have accused China for years of artificially weakening the value of
the yuan, or renminbi, to boost its export competitiveness. The
yuan, which has depreciated 6.9 per cent against the dollar since
February 2009, remains ' undervalued,' the Treasury report said.
China's foreign exchange reserves, already the world's largest, jumped
nearly 20 per cent from a year ago to a record 2.27 trillion dollars
at the end of September, the Chinese central bank said Wednesday.
The language in the Treasury report appeared stronger than in a first
report sent by President Barack Obama's administration to lawmakers
in April, three months after he entered the White House. Treasury
Secretary Timothy Geithner had set off alarms in Beijing when he
charged during his January Senate confirmation hearing that the
president believed China manipulated its currency. Officials later
played down the written statement, saying staff who prepared it had
recycled election campaign speeches. Obama came into office
promising to talk tough with China on a range of issues, including
congressional complaints that China's manipulation of the yuan was
fueling the US trade deficit with the Asian giant. Thursday's
Treasury report said 'no major trading partner of the United States
met the standards' for branding them a currency manipulator for
gaining unfair competitive advantage in international trade. While
14 of 17 currencies studied appreciated against the dollar in the
second quarter of 2009, only the Chinese renminbi remained unchanged
against the dollar, the report found. 'This lack of movement of the
renminbi has contributed to upward pressure on more flexible
currencies in the region,' it said, noting that ' several emerging
markets' in Asia had intervened in the market to slow the pace of
appreciation. China's overall policies played an important role in
anchoring the global economy in 2009 and promoting a reduction in its
current account surplus, the Treasury said. But it noted that the
recent 'lack of flexibility' of the yuan exchange rate and China's
reserves buildup 'risk unwinding some of the progress made in
reducing' global imbalances as the world confronts an economic
crisis. The development was critical as governments prepare to
withdraw stimulus policies and demand by China's trading partners
recovered, according to the report. China has invested a large
part of the reserves in US dollar assets, such as safe but
low-yielding US Treasury bonds, but Beijing has tried to diversify
its investments to improve its returns in the midst of the financial
crisis.
Gates gives $120m for farms in poor nations
The Bill and Melinda Gates Foundation said it will donate a total of
$120 million in nine grants aimed at boosting agricultural production,
marketing and farming expertise in the developing world. 'Melinda
and I believe that helping the poorest small-holder farmers grow more
crops and get them to market is the world's single most powerful
lever for reducing hunger and poverty, ' Gates, the billionaire
founder of software giant Microsoft, said in remarks prepared for
delivery on Thursday to the World Food Prize annual meeting. A
summary and excerpts from his remarks were obtained by Reuters.
'The next Green Revolution has to be greener than the first,' Gates
said in the prepared remarks. 'It must be guided by small-holder
farmers, adapted to local circumstances, and sustainable for the
economy and the environment.' The World Food Prize honors
individuals each year who make significant contributions to
alleviating hunger and improving agricultural production. It was
established by Norman Borlaug, the Nobel Prize winning scientist
often called 'the father of the Green Revolution' for his work with
rice and wheat. The Gates Foundation, which has been active in
fighting child and infectious diseases in poor countries, has
committed $1.4 billion to agricultural development efforts. But
Gates, in his first major speech on agricultural development, called
for better coordination of aid efforts with the goal of making poor
farmers self-sustaining. The new grants show the range of efforts
needed, including investments in better seeds, training and market
access for farm goods. Gates said progress toward alleviating
global hunger is 'endangered by an ideological wedge that threatens
to split the movement in two' in a debate between agricultural
productivity and sustainability. 'It's a false choice, and it's
dangerous for the field,' Gates said in prepared remarks. 'The fact
is, we need both productivity and sustainability - and there is no
reason we can't have both.' The Gates Foundation is supporting
research on crops that can withstand drought and flooding so poor
farmers can adapt to climate change. It is also supporting a
ground-breaking effort with the World Food Programme to buy food
from small farmers in the developing world for food aid. WFP has
already purchased 17,000 tonnes of food from small farmers through
the program, linking many to markets for the first time. The nine
new grants include funding for legumes that fix nitrogen in the soil,
higher- yielding varieties of sorghum and millet, and new varieties
of sweet potatoes that resist pests.
$120 million in nine grants aimed at boosting agricultural production,
marketing and farming expertise in the developing world. 'Melinda
and I believe that helping the poorest small-holder farmers grow more
crops and get them to market is the world's single most powerful
lever for reducing hunger and poverty, ' Gates, the billionaire
founder of software giant Microsoft, said in remarks prepared for
delivery on Thursday to the World Food Prize annual meeting. A
summary and excerpts from his remarks were obtained by Reuters.
'The next Green Revolution has to be greener than the first,' Gates
said in the prepared remarks. 'It must be guided by small-holder
farmers, adapted to local circumstances, and sustainable for the
economy and the environment.' The World Food Prize honors
individuals each year who make significant contributions to
alleviating hunger and improving agricultural production. It was
established by Norman Borlaug, the Nobel Prize winning scientist
often called 'the father of the Green Revolution' for his work with
rice and wheat. The Gates Foundation, which has been active in
fighting child and infectious diseases in poor countries, has
committed $1.4 billion to agricultural development efforts. But
Gates, in his first major speech on agricultural development, called
for better coordination of aid efforts with the goal of making poor
farmers self-sustaining. The new grants show the range of efforts
needed, including investments in better seeds, training and market
access for farm goods. Gates said progress toward alleviating
global hunger is 'endangered by an ideological wedge that threatens
to split the movement in two' in a debate between agricultural
productivity and sustainability. 'It's a false choice, and it's
dangerous for the field,' Gates said in prepared remarks. 'The fact
is, we need both productivity and sustainability - and there is no
reason we can't have both.' The Gates Foundation is supporting
research on crops that can withstand drought and flooding so poor
farmers can adapt to climate change. It is also supporting a
ground-breaking effort with the World Food Programme to buy food
from small farmers in the developing world for food aid. WFP has
already purchased 17,000 tonnes of food from small farmers through
the program, linking many to markets for the first time. The nine
new grants include funding for legumes that fix nitrogen in the soil,
higher- yielding varieties of sorghum and millet, and new varieties
of sweet potatoes that resist pests.
Loan losses cost US bank $2 billon
Bank of America Corp. said Friday it lost more than $2 billion in the
third quarter as loan losses kept rising, providing further evidence
that consumers are still struggling to pay their bills. The
nation's second-largest bank, which lost $2.24 billion after
accounting for preferred dividends, said its losses for failed loans
came to almost $10 billion during the July-September period, up
almost $1 billion from the second quarter. The bank also added $2.1
billion to its reserves to cover bad loans, bringing its total
reserves to $11.7 billion. Bank of America's results were aided by
profit from investment bank Merrill Lynch, including income from
bond, stock and currency trading. Its earnings follow the pattern
set this week by Citigroup Inc. and JPMorgan Chase & Co., which also
reported more loan losses during the third quarter as consumers
struggled to keep up with their credit card and mortgage payments.
Both JPMorgan Chase and Goldman Sachs Group Inc. reported big gains
from their trading operations. Bank of America said it lost $2.24
billion, or 26 cents per share, after accounting for the preferred
dividends of $1.24 billion. That compared with earnings of $704
million, or 15 cents per share, a year earlier. Revenue in the
quarter increased 33 per cent to $26.04 billion. The loss was 5
cents more per share than the 21 cents forecast by analysts surveyed
by Thomson Reuters Inc. Investors sent Bank of America shares down
59 cents, or 3.3 per cent, to $17.51 in premarket trading. Shares
closed Wednesday at $18.10. 'Obviously, credit costs remain high,
and that is our major financial challenge going forward,' CEO Ken
Lewis said in a statement accompanying the earnings report. 'However,
we are heartened by early positive signs, such as the leveling of
delinquencies among our credit card numbers.' Bank of America is
considered particularly vulnerable to unemployment, which climbed
last month to 9.8 per cent in the U.S. Economists predict the jobless
rate will pass 10 per cent in the coming months. The bank's
massive portfolio of credit-card loans could be an for how well the
industry at large will fare. The bank has about 53 million consumer
and small business customers, making it vulnerable to delinquencies
and defaults, yet also ready to thrive when the economy recovers.
Bank of America's global card services unit loss widened significantly
to $1.04 billion from $167 million a year ago. The loss in the
bank's home loans and insurance division grew to $1.6 billion from
$54 million a year ago, as credit costs continued to rise. The
bank, which being investigated by federal authorities for its Merrill
acquisition, has received $45 billion in bailout funds as part of
the Treasury Departments $700 billion financial rescue package. It's
not known when it will repay the government. Lewis, who is
retiring at year's end, has agreed to give up his salary and other
compensation for 2009.
third quarter as loan losses kept rising, providing further evidence
that consumers are still struggling to pay their bills. The
nation's second-largest bank, which lost $2.24 billion after
accounting for preferred dividends, said its losses for failed loans
came to almost $10 billion during the July-September period, up
almost $1 billion from the second quarter. The bank also added $2.1
billion to its reserves to cover bad loans, bringing its total
reserves to $11.7 billion. Bank of America's results were aided by
profit from investment bank Merrill Lynch, including income from
bond, stock and currency trading. Its earnings follow the pattern
set this week by Citigroup Inc. and JPMorgan Chase & Co., which also
reported more loan losses during the third quarter as consumers
struggled to keep up with their credit card and mortgage payments.
Both JPMorgan Chase and Goldman Sachs Group Inc. reported big gains
from their trading operations. Bank of America said it lost $2.24
billion, or 26 cents per share, after accounting for the preferred
dividends of $1.24 billion. That compared with earnings of $704
million, or 15 cents per share, a year earlier. Revenue in the
quarter increased 33 per cent to $26.04 billion. The loss was 5
cents more per share than the 21 cents forecast by analysts surveyed
by Thomson Reuters Inc. Investors sent Bank of America shares down
59 cents, or 3.3 per cent, to $17.51 in premarket trading. Shares
closed Wednesday at $18.10. 'Obviously, credit costs remain high,
and that is our major financial challenge going forward,' CEO Ken
Lewis said in a statement accompanying the earnings report. 'However,
we are heartened by early positive signs, such as the leveling of
delinquencies among our credit card numbers.' Bank of America is
considered particularly vulnerable to unemployment, which climbed
last month to 9.8 per cent in the U.S. Economists predict the jobless
rate will pass 10 per cent in the coming months. The bank's
massive portfolio of credit-card loans could be an for how well the
industry at large will fare. The bank has about 53 million consumer
and small business customers, making it vulnerable to delinquencies
and defaults, yet also ready to thrive when the economy recovers.
Bank of America's global card services unit loss widened significantly
to $1.04 billion from $167 million a year ago. The loss in the
bank's home loans and insurance division grew to $1.6 billion from
$54 million a year ago, as credit costs continued to rise. The
bank, which being investigated by federal authorities for its Merrill
acquisition, has received $45 billion in bailout funds as part of
the Treasury Departments $700 billion financial rescue package. It's
not known when it will repay the government. Lewis, who is
retiring at year's end, has agreed to give up his salary and other
compensation for 2009.
Mattel earnings decline
Mattel Inc., the largest US toymaker, said Friday its fiscal
third-quarter profit declined 3 per cent as the tough economy
dampened demand for key brands like Barbie and Fisher-Price. Chief
Executive Robert A. Eckert said Friday that revenue 'continues to be
challenging this year' because of the economy, stronger dollar and a
lack of toys tied to hot movies and other entertainment. A year
ago, results were boosted by toys tied to movies including 'Kung Fu
Panda,' 'Speed Racer' and 'The Dark Knight.' The company said it
has continued to cut costs to maintain profit margins. In response to
weak sales and cautious ordering by retailers, toy makers have been
cutting costs and slashing inventory in an effort to preserve profit.
Mattel, which is based in El Segundo, Calif., is in the midst of a
cost-cutting plan designed to save $180 million to $200 million over
two years. Profit for the quarter ended Sept. 30 declined to
$229.8 million, or 63 cents per share, matching analyst expectations.
A year ago the company earned $238.1 million, or 65 cents per share.
Revenue declined 8 per cent to $1.79 billion, partly because of
the stronger dollar. Analysts polled by Thomson Reuters, on average,
predicted revenue of $1.78 billion. Sales of Barbie, which
celebrated her 50th birthday earlier this year, declined 8 per cent
as flat sales domestically were offset by international declines.
Sales of other girl brands dropped 19 per cent as demand for Polly
Pocket and High School Musical toys waned.
third-quarter profit declined 3 per cent as the tough economy
dampened demand for key brands like Barbie and Fisher-Price. Chief
Executive Robert A. Eckert said Friday that revenue 'continues to be
challenging this year' because of the economy, stronger dollar and a
lack of toys tied to hot movies and other entertainment. A year
ago, results were boosted by toys tied to movies including 'Kung Fu
Panda,' 'Speed Racer' and 'The Dark Knight.' The company said it
has continued to cut costs to maintain profit margins. In response to
weak sales and cautious ordering by retailers, toy makers have been
cutting costs and slashing inventory in an effort to preserve profit.
Mattel, which is based in El Segundo, Calif., is in the midst of a
cost-cutting plan designed to save $180 million to $200 million over
two years. Profit for the quarter ended Sept. 30 declined to
$229.8 million, or 63 cents per share, matching analyst expectations.
A year ago the company earned $238.1 million, or 65 cents per share.
Revenue declined 8 per cent to $1.79 billion, partly because of
the stronger dollar. Analysts polled by Thomson Reuters, on average,
predicted revenue of $1.78 billion. Sales of Barbie, which
celebrated her 50th birthday earlier this year, declined 8 per cent
as flat sales domestically were offset by international declines.
Sales of other girl brands dropped 19 per cent as demand for Polly
Pocket and High School Musical toys waned.
Oil prices slip after breaching $78
The price of oil fell Friday on profit-taking after striking a
year-high above 78 dollars in a strong week for crude futures,
traders said. Prices have climbed steadily in recent trading
sessions, buoyed by a weak dollar that has bolstered investor risk
appetite for hard assets such as oil. New York's main contract,
light sweet crude for November delivery, hit 78.17 dollars a barrel
in Asian trading hours—the highest level since October 14, 2008 —
after official data showed a pick-up for US gasoline demand. It
later pulled back to stand at 77.33 dollars, down 23 cents compared
with Thursday's closing level. Brent North Sea crude for December
delivery dropped 40 cents to 75.83 dollars a barrel in early London
trade on Friday. 'Crude prices were trading a little lower ... due
to profit taking,' said Sucden Financial Research analyst Nimit
Khamar. 'The recent price rise has been very impressive and markets
could well test 80 dollars but in our opinion a correction next week
is the likely scenario to back below 75 dollars and even to the low
70s given oil fundamentals remain poor, global inventories are still
high and demand recovery is far from convincing.' A US government
report published Thursday showed gasoline, or petrol, stocks fell by
5.2 million barrels in the country last week. Analysts polled by Dow
Jones Newswires had expected a rise of 700,000 barrels. The fall
in gasoline stocks indicates rising demand and tightening supplies,
supporting prices, traders said. US crude reserves meanwhile rose
by 400,000 barrels last week, lower than most analysts' expectations
for a gain of 600,000 barrels.
year-high above 78 dollars in a strong week for crude futures,
traders said. Prices have climbed steadily in recent trading
sessions, buoyed by a weak dollar that has bolstered investor risk
appetite for hard assets such as oil. New York's main contract,
light sweet crude for November delivery, hit 78.17 dollars a barrel
in Asian trading hours—the highest level since October 14, 2008 —
after official data showed a pick-up for US gasoline demand. It
later pulled back to stand at 77.33 dollars, down 23 cents compared
with Thursday's closing level. Brent North Sea crude for December
delivery dropped 40 cents to 75.83 dollars a barrel in early London
trade on Friday. 'Crude prices were trading a little lower ... due
to profit taking,' said Sucden Financial Research analyst Nimit
Khamar. 'The recent price rise has been very impressive and markets
could well test 80 dollars but in our opinion a correction next week
is the likely scenario to back below 75 dollars and even to the low
70s given oil fundamentals remain poor, global inventories are still
high and demand recovery is far from convincing.' A US government
report published Thursday showed gasoline, or petrol, stocks fell by
5.2 million barrels in the country last week. Analysts polled by Dow
Jones Newswires had expected a rise of 700,000 barrels. The fall
in gasoline stocks indicates rising demand and tightening supplies,
supporting prices, traders said. US crude reserves meanwhile rose
by 400,000 barrels last week, lower than most analysts' expectations
for a gain of 600,000 barrels.
BNP Paribas to face disciplinary measures
Japan's securities watchdog on Friday recommended disciplinary action
against the French bank BNP Paribas for falsifying a document and
manipulating stock prices on the Tokyo market. The Securities and
Exchange Surveillance Commission said in a statement it had asked the
Financial Services Agency to take administrative action and any other
'appropriate measures' against BNP Paribas Securities (Japan)
Limited. It did not specify what kind of steps should be taken.
It said the firm had submitted reports that ' were incomplete in terms
of content and contained untruthful descriptions' in relation to a
secret derivatives agreement with now- bankrupt property developer
Urban Corp. BNP Paribas was given a business improvement order in
November in relation to that case, which was found to violate the
Financial Instruments and Exchange Act. The commission said that in
a separate case, a trader at the French firm was suspected of
manipulating stocks in an unnamed company, identified by Japanese
media as Internet and telecoms giant Softbank Corp.
against the French bank BNP Paribas for falsifying a document and
manipulating stock prices on the Tokyo market. The Securities and
Exchange Surveillance Commission said in a statement it had asked the
Financial Services Agency to take administrative action and any other
'appropriate measures' against BNP Paribas Securities (Japan)
Limited. It did not specify what kind of steps should be taken.
It said the firm had submitted reports that ' were incomplete in terms
of content and contained untruthful descriptions' in relation to a
secret derivatives agreement with now- bankrupt property developer
Urban Corp. BNP Paribas was given a business improvement order in
November in relation to that case, which was found to violate the
Financial Instruments and Exchange Act. The commission said that in
a separate case, a trader at the French firm was suspected of
manipulating stocks in an unnamed company, identified by Japanese
media as Internet and telecoms giant Softbank Corp.
Lloyds to axe 460 more jobs
Britain's state-rescued Lloyds Banking Group on Friday said it would
cut up to 460 more positions, bringing to about 8,000 the total
number of job losses it has announced since the start of the year.
LBG said more jobs would disappear as a result of an agreement to sell
its loss-making Halifax Estate Agency business to LSL Property
Services for the nominal fee of one pound (1.1 euros, 1.6 dollars).
'It is anticipated that as a result of the counter closures, up to
460 colleagues will be affected.' An additional 1,050 staff
currently working across LBG's 218 estate agency offices will
transfer to LSL Property Services on completion of the sale that is
expected to conclude in January.
cut up to 460 more positions, bringing to about 8,000 the total
number of job losses it has announced since the start of the year.
LBG said more jobs would disappear as a result of an agreement to sell
its loss-making Halifax Estate Agency business to LSL Property
Services for the nominal fee of one pound (1.1 euros, 1.6 dollars).
'It is anticipated that as a result of the counter closures, up to
460 colleagues will be affected.' An additional 1,050 staff
currently working across LBG's 218 estate agency offices will
transfer to LSL Property Services on completion of the sale that is
expected to conclude in January.
GE profit tumbles
General Electric Co reported a 42 per cent drop in profit, as a
global economic slump hammered its hefty finance arm and eroded
demand for the heavy equipment it manufactures. The largest U.S.
conglomerate, whose shares were down 0.8 per cent in premarket
trading, reported third-quarter profit of $2.49 billion, or 23 cents
per share, compared with earnings of $4.31 billion, or 43 cents per
share, a year earlier. Revenue fell 20 per cent to $37.8 billion.
Chief Executive Jeff Immelt said the economy ' is beginning to slowly
recover.' The world's largest maker of jet engines and
electricity-producing turbines has faced falling demand for its big
capital equipment. But so far this year it has counted on revenue for
maintaining products it has already sold to boost results.
global economic slump hammered its hefty finance arm and eroded
demand for the heavy equipment it manufactures. The largest U.S.
conglomerate, whose shares were down 0.8 per cent in premarket
trading, reported third-quarter profit of $2.49 billion, or 23 cents
per share, compared with earnings of $4.31 billion, or 43 cents per
share, a year earlier. Revenue fell 20 per cent to $37.8 billion.
Chief Executive Jeff Immelt said the economy ' is beginning to slowly
recover.' The world's largest maker of jet engines and
electricity-producing turbines has faced falling demand for its big
capital equipment. But so far this year it has counted on revenue for
maintaining products it has already sold to boost results.
Australia flags aggressive rate rises
for further rate rises to curb inflation, warning against a "timid"
policy as the economy sees the fastest recovery in the developed
world. Reserve Bank of Australia (RBA) governor Glenn Stevens, who
stunned markets last week with the first hike in an advanced economy
since the financial crisis, said interest rates should not stay too
low.
Germany to back on its feet
next year following its worst recession in 60 years, the country's
main economic institutes said on Thursday. Output in 2010 should
reach 1.2 percent, the group of institutes said in a closely-watched
joint report, strongly revising up a previous projection of minus
0.5 percent made in April. "In the autumn of 2009 , the lowest point
of the worst global recession since World War II appears to be
behind us. Much points to an economic recovery," the institutes said
in a press statement. Greater stability on global financial markets, a
brighter outlook for world trade and a rebound in Asia will likely
help Germany, one of the world's leading exporters, recover
relatively quickly from its slump, the report said. The report came
the day before the government is due to present its own economic
forecasts, in which it too is expected to revise up its view
following a strong bounce in Germany's economic fortunes.
Minister upbeat on regaining jute glory
jute sector will regain its past glory soon, as the present
government is working wholeheartedly for development of this
potential sector by adopting some time- befitting and pragmatic steps.
The minister made this statement while exchanging views with managing
directors and deputy managing directors of different banks in the
conference room of the Bangladesh Jute Mills Association (BJMC).
Siddiqui called for coordinated endeavours to promote this sector,
which was destroyed due to negligence of the previous government. He
also emphasised the need for multipurpose uses of the jute side by
side with expanding its export markets to regain its golden past. The
minister said he will be at the BJMC office on Sundays and another
day every week at the Jute Department office to observe and review
the overall situation of the state-run jute mills. Later, the minister
handed over a cheque for Taka 60 lakh to each of the MDs of Sonali,
Rupali, Janata and Agrani banks as loan on behalf of the BJMC.
Textiles and Jute Secretary Md Ashraful Mokbul and BJMC Chairman TD
Mitra were present at the meeting.
BB mounts multi-layer watch on farm loans
ensure a proper distribution of Tk 12 ,000 crore in farm loans
across the county. "Apart from BB's monitoring, the respective banks
will also monitor their own distribution," said Bangladesh Bank
Governor Atiur Rahman at a discussion meeting with reporters at the
central bank's Rajshahi office yesterday. "We are also training 80 new
officials. With the completion of their training, the officials will
spread across the country and monitor the distribution for 15 days,"
Rahman said. BB has asked all banks to record the mobile numbers of
farmers who will be given loans so that the monitoring staff can
contact them easily about loan distribution. Rahman said the latest
policy has set the target for agricultural loans 25 percent higher
at Tk 12 , 000 crore. "It's a big jump and it includes Tk 500 crore
for distribution among sharecroppers. So, we are keen to ensure
proper distribution." The central bank chief observed that it is not
possible to drive economic growth without boosting agriculture. "If
agro-based industries and SMEs (small and medium enterprises)
flourish, Rajshahi region will a big driving force for the economy,"
Rahman said. "Lack of gas and power is hindering the growth of
industries in Rajshahi, but the region has fertile lands where lies
the potential for agro- based industries." "If the banks agree to
provide loans to silk- based SMEs, the central bank will provide funds
at a 5 percent interest rate," Rahman said. "Based on the
agriculture and remittance, we are now proud of a reserve of over $9
billion, and the reserve is likely to reach $10 billion at any time
now." He described the role of banks and said Bangladesh like four
other countries are surviving recession because of the stability of
banks. Sardar M Shahjahan, BB Rajshahi branch general manager, and
DGM AFM Asaduzzaman were among others who were present with the
governor.
PM urges Japan to recruit more Bangladeshis
from Bangladesh and extend greater cooperation in expediting
national development, as a Japanese business expert found endless
prospects for the country's uplift. She made the call during
discussion when Chairman of the Japan-Bangladesh Joint Committee for
Commercial and Economic Cooperation Toshihito Tamba paid a courtesy
call on her at her office yesterday. During the meeting, the joint
committee chief handed over a list of requests to the Prime Minister
to promote overseas investment in Bangladesh. The list includes
prolongation of the expiry date of stay for investors and their
family members, preferably by over two years, reduction in tax on SIM
card of mobile telephone, giving tax privileges to investors in ICT
infrastructure, compliance with international financial rules and
regulations such as Uniform Customs and Practice for Documentary
Credits by the commercial banks in Bangladesh. The Japan-Bangla
chairman lauded Bangladeshi expatriates in Japan as hardworking and
disciplined. In reply, Hasina requested Japan to import more human
resources from Bangladesh and called for more Japanese investment in
various development sectors of the country. She pointed out that
low-cost production base and attractive incentives offered by the
government made Bangladesh an ideal destination for foreign
investment. "Japanese entrepreneurs can take comparative advantage of
an attractive package of incentives for FDI in energy and power
sectors, industries and other infrastructure-development sectors,"
the Prime Minister said. Hasina viewed that Bangladesh could follow
Japan as its model country, as it has turned itself into a developed
nation from its agro-based economy. Hasina told Tamba that Bangladesh
attaches due importance to its relations with Japan as it has been
one of the major development partners of Bangladesh since its
independence in 1971 under the leadership of Bangabandhu Sheikh
Mujibur Rahman. They hoped that the friendly bilateral relations
between Bangladesh and Japan would be strengthened further in the
days to come. Tamba reiterated Japanese government's invitation to
Sheikh Hasina to visit Japan. The Prime Minister said she already has
accepted the invitation and is willing to make the visit at a "
suitable" time. "Bangladesh is a country of endless prospects," the
Japanese business magnet said and expressed the hope that the
potential will be best utilised by the present government of the
country. Principal Secretary to the Prime Minister MA Karim, Prime
Minister's Press Secretary Abul Kalam Azad, Japanese Ambassador in
Bangladesh Tamotsu Shinotsuka and Ambassador M Ziauddin were present.
Half a million overseas jobs by year- end
year-end, as new overseas job markets are being found out by the
government. Expatriate Welfare and Overseas Employment Minister Engr
Khandaker Mosharraf Hossain said yesterday, sounding a note of warning
against any fraud on the part of manpower exporters. "Of them, Saudi
Arabia will take some two lakh Bangladeshis after the beginning of
their six mega-city projects and Iraq take more than 1 lakh," the
minister told a meeting at the city's Bureau of Manpower, Employment
and Training . The labour and employment and expatriate welfare and
overseas employment ministry organised the meeting with the Sramik-
Karmachari Oikya Parishad (SKOP) leaders. "The government has moved to
sign an agreement with its labour-market countries to settle a
minimum plane fare and other facilities with Bangladesh," said the
minister.
Body to recommend recession remedies
recommendations and assess the extent of losses suffered by the
overall export sector including woven and knitwear due to the global
financial meltdown. A government circular yesterday asked the
committee, led by former finance minister and Chairman of Credit
Rating Agency of Bangladesh M Syeduzzaman, to give its report within
one month. The circular directed the committee to give its report
containing review of the post-recession situation in the export
sector, especially in textile (woven, knitwear and yarn). The
committee has been asked to assess the losses the sector has suffered
due to recession and suggest remedies. In line with the government
directives, the committee will also determine the possible measures
to be taken for the sick industries and make recommendations
accordingly. Bangladesh Bank governor or a deputy governor, Centre
for Policy Dialogue Executive Director Mustafizur Rahman, Policy
Research Institute Executive Director Ahsan Habib Mansur and the
presidents of FBCCI, BTMA, BKMEA and BGMEA are the members of the
committee. The finance secretary has been made member- secretary of
the committee. Before the last Eid-ul Fitr, BGMEA in a press
conference said they would not be able to pay salaries and allowances
to the workers and employees if Tk 3 ,000 crore was not given to
bail out the garment sector. However, the demand drew huge flak. A
meeting of the task force on recession decided last month to form a
committee to review not only the situation in the garment sector but
in the overall export sector. Finance ministry officials said the
committee has been formed in line with the decision. Export growth was
11 percent last fiscal year despite recession, but from the start of
the current fiscal year there have been ups and downs in the export
sector. In the first two months of the fiscal year woven export fell
by 2.06 percent compared to the same months in the last fiscal year.
Knitwear export went down 0.48 percent during the period. In the
budget for the current fiscal year, Tk 5 , 000 crore has been set
aside to provide assistance to different sectors including those
affected by the recession.
Govt focuses on rice to dodge crisis
for fiscal 2009-10 to achieve food autarky in times of crisis. The
target is 8.19 percent higher than the amount of rice produced last
fiscal, when the output stood at 3.05 crore tonnes, officials said
yesterday. To realise the goal, the agriculture ministry has taken
steps to bring fallow lands under cultivation by introducing small
irrigation projects, ensuring boro rice cultivation in the south and
developing various rice seed varieties that are capable of resisting
salinity, drought and flood. Other steps include crop zoning, surface
water irrigation and reclamation of cultivable land in water-logged
areas, Agriculture Secretary CQK Mustaq Ahmed told a press
conference. "Our food production usually remains close to mere
self-sufficient levels. But attaining autarky becomes difficult in
case of losses due to natural disasters like cyclones and floods,"
said Ahmed. "For food, a poor country like ours is more vulnerable
than rich countries. That is why we have taken steps to ensure
production of crops," he said. The agriculture ministry organised the
press meet to share the government's initiatives to observe the
World Food Day today that calls for 'achieving food security in times
of crisis'. The government has taken up various programmes such as
rallies, fairs, meetings and seminars to create awareness among
farmers to continue efforts to produce more, so that the country can
meet demand during the days of crisis. "In times of crisis, we may
not be able to buy food despite having the funds to do so. That is
why we arranged programmes to prompt farmers to continue increasing
food production," Mustaq said. At the end of 2007 and early 2008 ,
when Bangladesh was ravaged by recurrent floods and the cyclone Sidr,
the country encountered deficits in staple food output. Procuring
food from international market also became difficult as leading rice
producing countries imposed restrictions on exports in the wake of a
global production shortfall. Bangladesh, with a population of about 15
crore, however emerged from the problem because of good output in
the two biggest crops -- boro and aman latter in 2008. Production of
boro in the last harvest season of 2009 stood at 1.85 crore tonnes,
2.77 percent higher than the target. "We are also expecting
favourable aman output this season," said the agriculture secretary.
He, however, said Bangladesh needs to continue efforts to raise
production and agricultural growth to meet the increasing needs in
the backdrop of declining land and rising population. Mustaq said the
government emphasises vertical expansion of agriculture and
development of stress- tolerant rice seed varieties to resist the
effects of changing climate.
Dubai state firms due to repay $50 b
dollars in debt -- 70 percent of the Gulf emirate's estimated GDP --
within the next three years, Standard and Poor' s said in a study
published on Thursday. There is a "significant" likelihood the
government of the Gulf emirate will have to give financial support to
at least some of the companies, the credit ratings agency said,
estimating that the government and the various companies owe 80 to 90
billion dollars in total. The companies include finance group DIFC
Investments, ports operator DP World, Jebel Ali Free Zone (JAFZ),
Dubai Multi Commodities Centre Authority (DMCC), Emaar Properties and
Dubai Holding Commercial Operations Group ( DHCOG). It is "almost
certain" DIFC and DHCOG will next special government help, while the
likelihood of JAFZ and DP World needing support is "very high, " the
report said, adding that a lack of official statistics means there is
a significant margin of error in the figures and this generates
uncertainty.
India inflation rises less than forecast
government data showed Thursday, easing pressure on the central bank
to tighten monetary policy. Annual inflation rose to 0.92 percent in
the week ended October 3 from 0.70 percent a week earlier,
according to the Wholesale Price Index, India's most-watched
cost-of-living benchmark. Analysts had expected a figure close to 1.5
percent with food prices stoked by the worst monsoon in nearly four
decades. But the cost of food items declined during the week. The
central bank's monetary policy committee meets October 27 to make a
decision on interest rates.
Nokia launches IT campaign
by providing them with greater access to information technology.
Yeafesh Osman, state minister for science, information and
communication technology, inaugurated the campaign yesterday. The
campaign will help students of 120 schools and colleges from 40
major district towns create their email accounts. The campaign is
likely to start from Sunday with two cyber buses from two different
directions -- one from Dinajpur and the other from Cox's Bazar.
"Nokia wholeheartedly support the government' s vision of ICT
development and we are committed to partnering with the government
for rapid growth and expansion of ICT and Internet in Bangladesh,"
said Prem Chand, general manager of Nokia Emerging Asia. In the major
district towns, the world's largest handset company is planning to
organise seminars and local advocacy meetings to create awareness of
ICT among the local people.
Nokia posts loss of $832 m in Q3
loss of euro559 million ( $832 million) in the third quarter, taking
hits from a 20 percent drop in sales and a large one- time charge at
its network unit. Nokia made a profit of euro1.09 billion in the
same quarter of 2008. Net sales in the July-September period dropped
to euro9.81 billion, down from euro12.2 billion in the same period
last year, partly due to a shortage of components across its product
portfolio, Nokia said. The Finnish company also booked a 908 million
euros goodwill impairment at Nokia Siemens Networks, a joint network
infrastructure unit with Siemens AG of Germany. The mobile phone
industry has been hit hard by the financial crisis, but Nokia said
the market outlook is improving. It raised its 2009 forecast for
mobile phone volumes, saying it now expects a 7 percent decline from
the previous year, rather than the 10 percent fall it had earlier
predicted. Nokia also upgraded its estimates for the network
infrastructure market, predicting a 5 percent fall in euro terms in
2009 , compared to an earlier estimate of a 10 percent decline.
Dollar falls to 14- month euro low
The dollar hit a 14- month low against the euro Thursday on fears
that US interest rates would remain super-low for a long time and as
a stock market rally sparked appetite for riskier assets, traders
said. At 0615 GMT, the European single currency reached 1.4968
dollars, the highest level since August 2008. The euro later pulled
back to 1. 4935 , up from 1.4922 dollars late in New York on
Wednesday. Against the Japanese currency, the dollar firmed to 89.65
yen from 89.40 yen on Wednesday. Minutes from the US Federal
Reserve's most recent interest rate meeting indicated that US
borrowing costs would likely remain low for some considerable time,
according to analysts. Minutes from the September 22-23 meeting
published on Wednesday showed Fed officials see a recovery underway
from recession but one "restrained" by high unemployment and difficult
credit. "The US dollar remains flat on its back and has all the
hallmarks of a patient ready for open heart surgery," said MF Global
analyst Manus Cranny.
that US interest rates would remain super-low for a long time and as
a stock market rally sparked appetite for riskier assets, traders
said. At 0615 GMT, the European single currency reached 1.4968
dollars, the highest level since August 2008. The euro later pulled
back to 1. 4935 , up from 1.4922 dollars late in New York on
Wednesday. Against the Japanese currency, the dollar firmed to 89.65
yen from 89.40 yen on Wednesday. Minutes from the US Federal
Reserve's most recent interest rate meeting indicated that US
borrowing costs would likely remain low for some considerable time,
according to analysts. Minutes from the September 22-23 meeting
published on Wednesday showed Fed officials see a recovery underway
from recession but one "restrained" by high unemployment and difficult
credit. "The US dollar remains flat on its back and has all the
hallmarks of a patient ready for open heart surgery," said MF Global
analyst Manus Cranny.
Philippines overseas remittances keep rising
Remittances back home from millions of Filipinos working abroad rose
2.8 percent year-on-year in August, the central bank said on
Thursday, bolstering expectations for economic growth. The total of
1.4 billion dollars in August brought remittances for the first
eight months of the year to 11.34 billion dollars, a 3.7 percent
increase from the same period last year, the central bank said in a
statement. "Remittances from Filipino workers overseas continued to
underpin the resilience of the economy, remaining a stable source of
foreign exchange for the country," the statement said. It credited
the remittances to the steady deployment of workers abroad and the
improved services and channels for sending the money home,
particularly through local banks.
2.8 percent year-on-year in August, the central bank said on
Thursday, bolstering expectations for economic growth. The total of
1.4 billion dollars in August brought remittances for the first
eight months of the year to 11.34 billion dollars, a 3.7 percent
increase from the same period last year, the central bank said in a
statement. "Remittances from Filipino workers overseas continued to
underpin the resilience of the economy, remaining a stable source of
foreign exchange for the country," the statement said. It credited
the remittances to the steady deployment of workers abroad and the
improved services and channels for sending the money home,
particularly through local banks.
Subscribe to:
Posts (Atom)