US hits China pipes with tariffs

The US Commerce Department has imposed anti-dumping tariffs of up to 99 % on imports of Chinese tubular goods. The department alleged China had been selling its oil well pipes at prices that were much lower than normal. The announcement is the latest in a series of trade disputes between the US and China, which called the move an "abuse of protectionist measures". The move comes 10 days before President Barack Obama is due to make his first visit to China since taking office. He will be in China from 15-18 November. In September, the United States announced it would impose duties on Chinese-made tyres to protect local US industry, sparking the first major trade dispute of Obama's presidency. Simmering tensions The US commerce department said it has " determined that Chinese producers/exporters have sold OCTG (oil country tubular goods) in the United States at prices ranging from zero to 99.14 % less than normal value". The department said that imports of OCTG from China were valued at an estimated $2.6 bn (£1. 6 bn) in 2008. Several US companies and a major labour union had petitioned the Commerce Department to examine Chinese under-pricing of the tubes, which include a variety of steel and iron products. China vowed to protect its industrial interests and called for the US to give "equal and fair treatment to Chinese firms". "China resolutely opposes the abuse of protectionist measures, and will take measures to protect the interests of our domestic industry," said a statement issued by the the Ministry of Commerce. Beijing has filed a World Trade Organisation challenge to US anti-dumping duties on certain types of steel pipes, pneumatic off-road tyres and woven sacks. It has also requested consultations on the duties imposed on Chinese-made tyres, a preliminary step towards a WTO complaint. China launched anti-dumping and anti-subsidy investigations into imports of US chicken parts and automotive parts, in response to the US tyre duties. In August, a WTO panel found in favour of the United States, which claimed that Chinese curbs on importing and distributing foreign publications and audiovisual products violated its WTO commitments. US and Chinese officials held talks in China in October on trade, clean energy and climate change amid the simmering trade disputes in several areas, claims of protectionism and a wide US trade deficit with China.

Treasury seeks RBS lending proof

The UK Treasury is demanding proof from bailed-out Royal Bank of Scotland Group that businesses do not want its loans. RBS, which is majority-owned by taxpayers, said it would not meet its £16 bn business lending target because of "subdued demand" from consumers. The Treasury told the BBC the bank must publish a "consumer charter" to prove this in the next four weeks. RBS will also be asked show the terms and conditions of their loans, to prove they are not too harsh. " Indications remain that it is unlikely that RBS's net business lending will increase... in the light of the subdued demand " RBS The government this week announced that it would inject another £33.5 bn into RBS, taking its stake in the troubled bank to 84 %. It is already 70 % owned by the taxpayer. As part of that, RBS and fellow bailed-out bank Lloyds have also agreed to increase lending to businesses and property owners by a total of £39 bn. "We have reconfirmed the lending commitments with RBS and Lloyds this week," a Treasury spokesman said. "They will not be changing and they are binding." Lending commitments The spokesman added that a clause was put into contracts with RBS in February acknowledging that demand for lending might not increase as businesses sought to pay off existing debts. "Indications remain that it is unlikely that RBS's net business lending will increase by the £16 bn that we are making available, in the light of the subdued demand we currently experience," the bank said. It added that was "notwithstanding the group's willingness to lend to creditworthy customers and our clarity that the requisite funds are available". RBS on Friday reported a pre-tax loss of £2.2 bn for the period July to September 2009 , compared with a profit of £1.9 bn in the same period last year. The bank also plans to put £282 bn of its assets into the government's insurance scheme for toxic assets.

AIG posts second quarterly profit

Insurer AIG, which was saved by the US government last year, has reported its second straight quarterly profit. Net income for the three months to September was $92 m, compared with a loss of $24.5 bn in the same quarter last year - when it was bailed out. However, AIG's shares fell 6.6 % after chief Robert Benmosche warned the firm's run of profits may not continue. "Expect continued volatility in reported results in the coming quarters," Mr Benmosche said. This would be because of restructuring charges, AIG said. AIG was bailed out by the US government in 2008 and is now 80 % state-owned. In total, the firm has received $182.5 bn of government funding. Government help The $92 m in net profit was what is available to its shareholders. Including the government's share as a result of its stake, AIG earned $455 m in the quarter. As of 30 September, AIG's outstanding assistance from the government was $ 122.31 bn, down 4 % from the previous quarter. Of that, AIG owes the US government $85.66 bn in loans and interest. The remaining aid is tied to the value of some of the toxic assets that the government bought from AIG, where the government recoups more money if their value rises. "We continue to focus on stabilising and strengthening our businesses," Mr Benmosche said.

eBay in Skype deal with founders

Online auction site eBay has settled a lawsuit with the founders of Skype, ending uncertainty over the future of the internet phone company. The case was about whether the software of the site was owned by the founders via their firm, Joltid, or by eBay. In a complicated deal, the founders will drop their lawsuit against eBay and take two seats on the board of Skype. Skype will still be sold to a group of investors for about $2 bn (£1.2 bn). Skype's software lets computer and mobile phone users talk to each other for free and make cut-price calls to mobiles and landlines. The deal, announced by eBay in September, is is expected to be finalised in the fourth quarter of 2009. As a result of the agreement, eBay will keep a 30 % stake in Skype rather than the 35 % it originally announced. New owners "Skype will be well positioned to move forward under new owners with ownership and control over its core technology," said eBay head John Donahoe. "At the same time, eBay continues to retain a significant stake in Skype and will benefit from its continued growth." Skype founders Niklas Zennstrom and Janus Friis will now own a 14 % stake in the new Skype. The other new owners are Andreessen Horowitz - run by Netscape co-founder Marc Andreessen - as well as private equity firm Silver Lake and the Canada Pension Plan Investment Board. But Index Ventures, which originally invested in Skype, will no longer be part of the new takeover. Mr Zennstrom and Mr Friis had been trying to buy back Skype for the past year, which eBay bought for $2.6 bn in 2005. They sued the company in the UK, saying their company Joltid owned the rights to underlying source code that props up the Skype network. Unlike traditional mobile calls, which are transmitted over a cellular network, Skype turns your voice into data and sends it over the internet. Since being acquired, the number of registered Skype users has risen to 405 million from 53 million, though free user-to-user calls still dominate the service.

G20 vows to spur fragile growth

Finance ministers from developing and rich countries meeting in Scotland have pledged to keep stimulus measures in place until global recovery is assured. A statement issued after the G20 meeting says the recovery is "uneven" and remains dependent on support, while unemployment is a "major" concern. Earlier, British PM Gordon Brown called for a fund for bank bailouts, possibly paid for by a tax on transactions. But the proposal received a lukewarm response from other G20 countries. After the meeting in St Andrews, US Treasury Secretary Tim Geithner said there was a "very broad consensus that growth remains the dominant policy imperative across our economies". " We agreed to maintain support for the recovery until it is assured " Alistair Darling British Chancellor of the Exchequer Alistair Darling said that although the threat of a downturn had receded, it was too early to withdraw emergency support. "There is no one who believes the job is yet done," he said. The G20 statement said: "The recovery is uneven and remains dependent on policy support, and high unemployment is a major concern. "To restore the global economy and financial system to health, we agreed to maintain support for the recovery until it is assured." 'Impeding markets' The BBC's Andrew Walker at the meeting says it was overshadowed by a call by the British prime minister for a new "social contract" with banks to make them more responsible to society. " [A transaction tax] is not particularly attractive to me as finance minister in Canada, because we're not a government that has raised taxes " Jim Flaherty Mr Brown said the financial sector was so key that governments had no choice but to step in when it failed. He added: "And it cannot be acceptable that the benefits of success in this sector are reaped by the few but the costs of its failure are borne by all of us." Mr Brown said a global levy on financial transactions was one of the ways to make banks pay. But he added that Britain would not act alone, and any new tax on banking would have to be a global agreement. The idea is popular with campaigners who see it as a way of raising funds for developing countries. HAVE YOUR SAY Brown wants us to pay for bank failures in advance by taxing transactions John Clifford But critics argue the proposed tax would impede the global financial markets that help lubricate an increasingly interdependent world economy. Our correspondent says the idea has been received politely by the finance ministers - but several made remarks which suggest that other ways of tacking the problem are rather more likely to be adopted. Canadian Finance Minster Jim Flaherty said the UK plan was "not particularly attractive to me as finance minister in Canada, because we're not a government that has raised taxes". The British Bankers' Association has also cast doubt on the effectiveness of such levies, which Chief executive Angela Knight "don't work as they require perfect or near-perfect global implementation". The G20 countries also promised to step up efforts to tackle climate change and "work towards an ambitious outcome" at next month's climate conference in Copenhagen.