GM faces some problem

GM says it has failed to sell its Swedish car brand Saab and will begin "an orderly wind-down of Saab operations". GM had been in talks with the Dutch speciality car maker Spyker over a sale. Talks with Sweden's Koenigsegg also fell through earlier this year. "We regret that we are not able to complete this transaction with Spyker Cars," said GM Europe boss Nick Reilly. GM has been trying to sell Saab as part of its turnaround plans since January. ANALYSIS Jorn Madslien, BBC business reporter It is the end of the road for Saab, the car that emerged from a company making fighter jets. When its owner GM bought Saab, it was seen as a brand that could become the US automotive group's European luxury brand. But the quirky cars did not attract a broad enough following, so it failed to make money. GM's solution was to cut costs by sharing ever more parts with Opel while, at the same time, toning down their design. Such moves alienated traditional Saab customers without gaining new ones. New product development ground to a halt and in the end, there was simply not enough left of Saab to make it worth preserving. Mr Reilly added that all debts would be paid and that the winding-down would be "an orderly process". On a conference call, GM vice-president John Smith said it became clear that there were serious problems with the Spyker talks that could not be resolved. He said: "We reached a point of impasse, we decided to deal with it and move on." A statement from the firm said that Saab would continue to honour all warranties, while providing service and spare parts to current Saab owners around the world. Last week, Saab agreed a deal with Beijing Automotive to sell it some of Saab's technology. That deal will not be affected by the latest announcement. Saab employs 3 ,400 people in Sweden and GM estimates 8 ,000 people will suffer indirectly. 'Sad news' Sweden's government said it was sad news but that it would not step in to save Saab. THE HISTORY OF SAAB 1937 : Saab founded as aircraft maker 1946 : Starts making cars 1969 : Merges with Scania-Vabis 1990 : Car division splits from aircraft business. GM and Investor AB take 50 % stake 2000 : GM takes 100 % ownership Jan 2009 : GM announces talks to sell Saab Aug 2009 : Koenigsegg agrees terms to buy Saab. Nov 2009 : Koenigsegg pulls out of talks. 1 Dec 2009 : GM says will consider offers until end of December 18 Dec 2009 : GM announces the winding down of Saab Source: Reuters "It is very dismal. Very sad news for all of the employees and it comes at the worst possible time", the Enterprise Minister Maud Olofsson told the Swedish news agency TT. She has called a meeting to discuss the situation with unions on Monday. "I don't think GM really knows how the wind- down is going to take place, but GM has to take its responsibility," she said. "The most important thing right now is to take care of the employees and the future, how to make the most of their know-how," she added. Last year, Saab lost 3 bn kronor (£255 m; $412 m). It has not made a profit since 2001 and made up 1.1 % of GM's global sales. "This has been 20 years in the making. At one point, Saab had cachet, but it just didn't update its models fast enough," said Michael Tyndall, auto specialist at Nomura. "This just shows that the industry moves on and if you don't invest, you don't do well." Saab was just about to replace its 9-5 model after more than a decade on the market. Most car companies bring out a new model every five or six years. New focus GM said its focus would remain on its four core brands - Buick, Cadillac, Chevrolet and GMC - as well as its European business Opel. GM pledged to become a leaner company when it emerged from bankruptcy protection in July this year. It had been hit by a sharp slump in sales - partly because of the financial crisis, but also because of stiff competition from Japanese rivals. The company is now 62 %-owned by the US government.

Citi threat by the bonus tax

London's role as a leading financial hub may be " damaged" by the new bonus tax, Barclays chief John Varley has told the BBC. Mr Varley is the first senior British banker to attack the one-off 50 % tax on large bonuses for bankers recently announced by the government. "I think that London could well be damaged by this," he said. The Barclays chief executive also criticised Labour for not ensuring a "predictable tax environment". The bonus levy applies to bonuses of more than £25 ,000 , and lasts until April next year. France has announced similar plans. The tax is payable by banks, with bankers still having to pay income tax on any bonus they receive as usual. Mr Darling predicted in his pre-Budget report that the tax would raise £550 m, though banks have claimed it would raise far more. 'Laments' bonus tax "Banks are competing globally - this bank, Barclays, competes with banks all around the world and we have to be able to compete on a level playing field," Mr Varley told the BBC. "The United Kingdom and France have gone in that direction (the bonus tax) and I lament that," he added. " I understand the anxiety in the public and in stakeholders in this country about pay in the banking industry " John Varley The Treasury, in a response to Mr Varley, said it stands by its decision to have a tax. "The government does not believe the long-term competitiveness of the UK financial services sector will be harmed by this one-off tax," a Treasury spokesman said. "Without the significant support that the taxpayer has provided over the last year, some of the banks would have failed, damaging the economy further. "The bonus tax will ensure banks think twice before paying large bonuses on the back of taxpayer support. Mr Varley also criticised the government for the changes it had made to the tax system. In addition to the bonus tax, Mr Darling has implemented a new higher tax rate of 50 % that will be applied to incomes over £150 ,000 a year from April 2010 , and high-earners will be taxed on the value of their employers' pension contributions. "It is very important that for this economy we have a predictable tax environment, not just for this tax but for all taxes," Mr Varley said. "And what business needs and households need is a stable and predictable tax environment and I think that this (the bonus tax) is a demonstration of a lack of stability in the tax environment." Shadow chancellor George Osborne has said he does not oppose the bonus tax, but Conservative London Mayor Boris Johnson has warned the tax would "super-penalise" the city. Competitiveness concerns Unlike rivals Royal Bank of Scotland and Lloyds Banking Group, Barclays avoided seeking a bail- out from the UK government in the midst of the financial crisis last year. It instead raised money from the Middle East, though it still benefited from emergency lending measures from the Bank of England to restore confidence to the credit markets. Mr Varley acknowledged the banking industry's debt to the taxpayer. "I know that as a system we had state support when we were on the brink of collapse and we need to acknowledge that in our behaviour," he said. "I understand the anxiety in the public and in stakeholders in this country about pay in the banking industry. "But I also have a responsibility to our shareholders, and in the modern banking environment, talent is mobile. So unless I get the best people I will not be doing my duty to my shareholders. "We need a level playing field to make sure that we can compete with the best companies in the world," he added. He said it was important that the financial services sector stayed competitive because it employs 1.3 million people, generates 15 % of corporation tax contributed to the Treasury's coffers, and accounts for 10 % of the total output of the UK economy. Barclays said recently it made a pre-tax profit of £1.56 bn in the three months to 30 September.

Microsoft challanged for search engine bing trademark

Lawyers for a small US technology firm said Thursday it is suing Microsoft on the grounds it has prior claim to the name 'Bing.' Bing! Information Design filed suit in a circuit court in the state of Missouri accusing Microsoft of trademark infringement, unfair competition, and 'tortious interference with business expectancy.' 'For nearly ten years my client has been using the Bing! mark,' attorney Anthony Simon said in a release. 'Microsoft's use of the identical mark and its aggressive advertising have gutted all of my client's efforts to distinguish its business and created confusion that must be remedied.' Microsoft told AFP on Thursday that it had yet to see a copy of the lawsuit but that the argument is specious. 'We have not been served with a complaint, but are aware of the suit based on media reports,' Microsoft spokesman Kevin Kutz said in an email response to an AFP inquiry. 'We believe this suit to be without merit and we do not believe there is any confusion in the marketplace with regard to the complainant's offerings and Microsoft's Bing.' He added that Microsoft is looking forward to defending its position in court. BID creates interactive illustrations, designs, graphics, animations, and technical diagrams, according to Simon. A BID website on Thursday featured sports stories and quizzes localised for St Louis, the city where the company is based. Microsoft rolled out its new Bing search engine worldwide in June in a challenge to internet powerhouse Google. Microsoft entered into a 10-year Web search and advertising partnership with Yahoo! in July that set the stage for a joint offensive against Google. Microsoft has also begun integrating messages from hot micro-blogging service Twitter into Bing and plans to do the same with status updates from Facebook.

PC market's sale came back

Global shipments of personal computers bounced back in the third quarter of 2009, a sign that information technology spending will pick up in the coming months, a research group reported on Wednesday. Back-to-school demand helped shipments to rise 2.3 per cent after falling for three consecutive quarters, according to research firm IDC's Worldwide Quarterly PC Tracker. The market is expected to see double-digit growth in 2010, with desktop shipments roughly flat and portable computers driving overall increases in shipments. 'As commercial spending recovers in 2010, we expect to see robust growth over the next several years,' said Loren Loverde, program director at IDC Worldwide Trackers, in a statement. Portable computers for consumers drove overall shipments in the third quarter and rose 33.5 per cent from 2008. Shipments of mini notebooks, or netbooks, designed for accessing the Internet, surged to account for 28 per cent of portable shipments, from 14 per cent a year ago. Those notebooks are expected to continue to grow at a slower rate than portable computers, since new ultra- thin portables are creating more competition in the market.