JP Morgan in profit

Wall Street bank JP Morgan Chase has reported profits of $3.3 bn (£2 bn) for the last three months of 2009. That compares with profits of $702 m reported at the end of 2008 at the height of the financial crisis. Total profits for the year were $11.7 bn, the bank said, with investment banking providing the bulk of the earnings. Staff compensation - made up of salaries and bonuses - totalled $27 bn for the year. Investment bankers earned $9.3 bn in pay and bonuses. Mixed performance Jamie Dimon, JP Morgan's chairman and chief executive, said he was pleased with the bank' s performance, but said it could be better. "Though these results showed improvement, we acknowledge that they fell short of both an adequate return on capital and the firm's earnings potential," he said. JP MORGAN CHASE Third-largest bank in the US with operations in 60 countries Rescued two of its large rivals, Bear Stearns and Washington Mutual, in 2008 Its exposure to the US sub-prime mortgage market was relatively small Quickly repaid a $25 bn emergency loan it received from the US government as part of the Tarp programme Mr Dimon also praised staff for helping to protect the bank in its recovery from the banking crisis and for keeping it "healthy and vibrant". Investors appeared unimpressed with JP Morgan's results, with shares in the bank falling 2 % in early trading, though they later recovered. "The top-line results were disappointing and there were pressures on credit card lending and retail banking," commented David Buik from BGC Partners. "It shows the US economy is far from out of the woods yet." The bank lost $2.2 bn through its credit card business last year, and retail banking also made a loss in the fourth quarter. Bonus payouts JP Morgan's 200 ,000 employees were paid a total of $27 bn in salaries and bonuses over the year - an 18 % increase on 2008 - though a figure for bonus payments alone was not given. The $9.3 bn earned by investment bankers was a 21 % increase on the previous year. The results follow US President Barack Obama's announcement on Thursday of plans to claw back nearly $120 bn from US banks to pay back bail-out costs. "If these companies are in good enough shape to afford massive bonuses, they are surely in good enough shape to afford paying back every penny to taxpayers," President Obama said, announcing the measure. JP Morgan received $25 bn of funds from the government's bail-out fund, known as the Troubled Asset Relief Programme (Tarp), but repaid it in full in June last year. Unlike many of its rivals, the bank did not report a quarterly loss during the financial crisis, having benefitted from a relatively low exposure to the US sub-prime mortgage market. The US's other major banks including Goldman Sachs, Morgan Stanley and Citigroup will report their results from Monday.

Kodak's sue

Camera maker Kodak has said it will sue Apple and Research In Motion (RIM), the makers of the iPhone and Blackberry, over technology used in their handsets. Kodak has filed a complaint with the US International Trade Commission (ITC). It alleges the iPhone and Blackberry use technology for previewing pictures that infringe Kodak patents. It has also filed two separate suits against Apple that claim infringements of patents relating to digital cameras and certain computer processes. Kodak has asked the ITC to bar both firms from shipping the phones and has asked for undisclosed monetary damages. RIM and Apple declined to comment. Legal scrutiny "We've had discussions for years with both companies in an attempt to resolve this issue amicably, and we have not been able to reach a satisfactory agreement," said Laura Quatela, chief intellectual property officer at Kodak. "In light of that, we are taking this action to ensure that we protect the interests of our shareholders and the existing licensees of our technology." The patent for Kodak's picture previewing technology has already been the subject of one dispute. On 17 December 2009 , an ITC judge ruled that camera-enabled phones made by Samsung infringed upon the Kodak patent. The separate filing against Apple has also been scrutinised in court in a case against Sun Microsystems. In that case, a federal jury determined that Sun's Java programming technology had infringed Kodak's patents. Sun later agreed to pay Kodak in return for a license for the patents at issue. Apple is currently in the middle of a legal dispute with phone giant Nokia. In October, Nokia alleged that the iPhone infringed 10 of its "fundamental" patents relating to wireless technologies. Apple countered with its own lawsuit in December, accusing Nokia of copying its technology. Since then Nokia has complained to the ITC and launched a further legal action that alleges "virtually all" of Apple's products infringe on its patents.

European car sales rise

European car sales rose by 16 % in December, marking signs of recovery in the sector after another tough year. However, total sales for 2009 were down 1. % on 2008 , according to figures from the European Automobile Manufacturers Association (ACEA). Some countries with scrappage schemes saw rises in sales in 2009 , including France and Germany. Sales in the UK were down 6.4 % for the year as a whole, though December sales were up 39 % compared with a year ago. A total of 14.5 million cars were sold across 28 European countries in 2009. Scrappage effect Ivan Hodac, secretary general of the EAMA, warned that the positive figures for December compared with an extremely bad period for the sector at the end of 2008. He added that some manufacturers would also suffer from the end of many scrappage schemes. EUROPE'S SCRAPPAGE SCHEMES Several European countries have used scrappage schemes to help their car industries The UK's scheme began in May 2009 and has been responsible for a fifth of new car registrations since then according to manufacturers. It is expected to run out in February Germany's car scrappage scheme ended in September 2009 , costing 5 bn euros (£4.4 bn). Car sales rose by 23 % last year France was the first to introduce a scrappage scheme in January 2009. It has now ended, helping car sales rise by more than 10 % Other European countries to introduce scrappage schemes include the Netherlands, Portugal and Spain. They all saw sales fall in 2009 Countries that did not introduce scrappage schemes include Ireland, which saw a 62 % fall in car sales last year "The scrappage schemes mainly benefited the volume manufacturers like Volkswagen, Renault and Fiat," he said. "2010 will be extremely difficult for these companies." Germany saw the biggest rise in sales last year - up more than 23 % compared with 2008. But sales for December were lower than a year ago, following the end of the German car scrappage scheme in September. The UK's scrappage scheme is due to run out in February, with a quota system for manufacturers introduced to share out the remaining money. Mr Hodac also said that Europe was still making too many cars. "Overcapacity has to be addressed as soon as possible, but it will take time," he said. "I'm not saying brands will disappear, but groups will become bigger, brands will change hands, and production will be cut."

Belgian beer dispute hits supply

Disaster may be brewing - or not - in beer- loving Belgium, where supplies of two of the country's most famous beers may be down to the last dregs. An industrial dispute over planned job cuts means a blockade is threatening supplies of Stella Artois and Leffe. A week-long blockade has stopped any beer from leaving the Leuven headquarters of Anheuser-Busch InBev, the world's biggest brewing company. Belgian supermarkets and bars have warned stocks are running low. The unions are protesting against the company's plans to cut more than 250 of 2 , 700 jobs in Belgium, and so far talks aimed at resolving the dispute have got nowhere. But there is no need for beer-lovers to panic just yet, says the BBC's Dominic Hughes in Brussels: There are probably around 125 breweries in Belgium producing around 800 standard beers. Add in special one-off brews, and some experts believe there could be more than 8 , 000 beers. No small beer Anheuser-Busch InBev announced this week a plan to cut 800 jobs across western Europe, 10 % of its 8 ,000 workforce in the region. The firm said the move was a response to falling beer sales, with the layoffs spread across Belgium, Germany, the UK, the Netherlands and Luxembourg. The news triggered protests at the firm's brewery in the Belgian town of Leuven, where it also has its headquarters. Anheuser-Busch InBev was formed in 2008 when Belgium-based InBev bought Anheuser- Busch, the owner of Budweiser, and the largest brewer in the US. InBev itself was formed in 2004 when Belgian Interbrew merged with Brazil's AmBev.

Tata Motors sales rise

Tata Motors says it sold 74 ,707 vehicles around the world in December, a rise of 84 % from a year earlier. Sales of commercial vehicles were 137 % higher, at 37 ,326 , and car sales were 51 % higher in December 2009 compared with December 2008. India's largest vehicle maker also said sales of Jaguar and Land Rover, which are owned by Tata, rose 33 % on the year to 21 ,134 vehicles. The figures caused shares in Tata Motors to rise 1.8 % to 796.70 rupees. Tata Motors has operations in the UK, South Korea, Thailand and Spain and is the world's second-largest bus manufacturer. It also makes the Tata Nano, which is the world's cheapest car.

Spain said EU must change their energy priorities

The European Union must change its budget priorities to finance common objectives in the energy sector and diversify its sources of production and supply, the Spanish EU presidency said Friday. "Changes in the financial perspective will be needed if we are to achieve the targets set for 2020 ," Spanish Industry Minister Miguel Sebastian said after chairing a meeting of his EU counterparts in the southern Spanish city of Seville. Under its ambitious climate plan for 2020 , the EU is committed to reducing emissions of greenhouse gas emissions by 20 percent compared to 1990 levels, to bringing to 20 percent its share of renewable energy among consumers and to achieving energy savings of 20 percent. Funding will also be necessary for interconnections in the energy sector to improve the safety of supply and reduce cost, said Sebastian, whose country took over the six-month rotating presidency of the EU on Janaury 1. "The market is not enough. There needs a little help from public authorities and from the EU to carry out these projects," he said after the meeting of the EU's informal Energy Council. The EU leaders must decide on a plan of action in the energy sector for the period 2010-2014 , and this could be done at a summit in Brussels in March, he said. Low carbon technologies require significant funding for research and development and the idea of changing the priorities within the EU budget is gaining weight, Sebastian said. He said 40 percent of expenditure currently goes on the Common Agricultural Policy. Outoing EU Energy Commissioner Andris Piebalgs disagreed. "It is premature to say it will cut into agricultural or other policies. Cutting here and there is not the right approach, it's wrong." Piebalgs is be replaced in his post by Germany's Guenther Oettinger and will instead take over Development, an EU portfolio that is also seeking funds in the common budget of the bloc.

US businessesmen send $43m for Haiti

Major US businesses have pooled at least 43 million dollars in cash and in-kind aid to help victims of Haiti's devastating earthquake, an association said Friday. The US Chamber of Commerce said the 43 million dollars includes contributions from at least 122 companies, with 22 of them donating one million dollars or more. The total includes US units of foreign companies, such as Nestle Waters North America, which contributed one million dollars. "It is amazing to see how many companies have responded to the urgency of this tragedy," said Stephen Jordan, senior vice president and executive director of the group' Business Civil Leadership Center. "We are encouraged by the early outpouring of support but we are well aware that this is going to be a marathon, not a sprint. The business community stands ready to work with the authorities as the recovery process gets under way." The Business Roundtable, an association of chief executive officers of large US companies, said aid pledges from its members amounted to 17 million dollars, including one million dollars each from PepsiCo and Coca- Cola, which were offering bottled water and supplies in addition to cash. Other firms donating cash or supplies included McKesson, Merck, Procter & Gamble, ITT Corporation and Wal-Mart Stores. "Business Roundtable CEOs and our member companies are deeply saddened by the loss of life and infrastructure damage in Haiti," said Michael Dan, head of the Business Roundtable' s Partnership for Disaster Response. Scores of other US businesses have also donated cash or other forms of aid, and some have matched employee contributions.

Khulna Hardboard Mil starts

State-owned Khulna Hardboard Mill resumes its production today after more than month of closure. The mill incurred a loss of nearly Tk 74 lakh due to the shortage of running capital and raw materials, said Habibur Rahman, managing director. The mill authorities made a request for Tk 10 crore to Industries Minister Dilip Barua and State Minister for Labour and Employment Begum Mannujan Sufian last month. In response, Bangladesh Chemical Industries Corporation (BCIC) has provided Tk 2 crore in financial assistance to the mill, now burdened with bank loans and other liabilities of over Tk 1.20 crore. "If BCIC does not give the required fund, our production will be hampered again," Rahman said. The mill can produce around 26 ,000 square feet hardboard a day. It needs 8 ,000 litres of furnace oil of Tk 2.08 lakh to keep itself up and running. Abdul Hannan, president of the mill's Collective Bargaining Agents, said any move by BCIC to close or privatise the mill would be strongly resisted by workers. Earlier, the mill was shut down on December 15 in 2002 and came back into production on September 14 , 2005. Reasons behind the closure were the crisis of fund and labour unrest.

Ship breaking policy will come out in Bangladesh

The government will soon make a policy for the shipping-breaking industry to ensure environment-friendly growth of the troubled sector. Industries Minister Dilip Barua said this on Saturday while inaugurating a two-day workshop titled 'Chemical Hazards, Safety and Environment' at Mokarram Hossain Khandaker science building auditorium at Dhaka University. Institute of Chemists and Chemical Technologists Bangladesh (ICCTB) and Bangladesh Chemical Society (BCS) jointly organised the workshop on risks of chemical contamination of the environs. As planned in the proposed policy, all ship- breaking industries will be brought under legal framework and control. "Besides, the construction of Dumping Yard for the recycling of hospital wastes is also under government's consideration," the minister told the function. At the workshop, the speakers emphasised establishing-environment-friendly industries to face the challenges of global climate change. They pointed out that unplanned and irresponsible use of chemicals has become a threat to human body, biodiversity and environment. The experts suggested creating awareness among people about the effects of chemicals as well as ensuring strict enforcement of the law to ban the use of chemicals. Their concerns came when reports are rife that the indiscriminate use of chemicals as food preservatives and colouring posed serious public health hazards. BCS President M Muhibur Rahman chaired the function. Dhaka University Vice-chancellor AAMS Arefin Siddique, Science Faculty Dean Prof Tajmeri SA Islam and ICCTB Director General Prof Abu Jafar Mahmud also spoke.

Cadbury bid

US chocolate maker Hershey plans to bid at least 17.9 billion dollars next week for British confectioner Cadbury after concluding it can top US food giant Kraft's offer, The Wall Street Journal reported Friday. Hershey was finalizing a financing package that now includes a loan of at least 10 billion dollars from banks, five billion in new Hershey shares and at least three billion from private investors and the Hershey trust, the Journal said, citing people familiar with the matter. The move would be the latest twist in an international chocolate bidding war that has seen the Cadbury board repeatedly reject Kraft's cash and shares hostile offer.

Japan Airlines and Delta Airlines deal

Japan Airlines has reached an agreement on a tie-up with Delta Air Lines as the troubled Japanese carrier readies for a court-led rehabilitation, a newspaper said Saturday. The two companies are likely officially to sign the deal, which will allow them to run code-share flights, as soon as JAL's new management endorses it, the Yomiuri Shimbun said, quoting company sources. The agreement means Asia's biggest airline will switch from the Oneworld alliance to the SkyTeam group, to which Delta belongs. JAL and Delta will ask US authorities for antitrust immunity by mid-February, the paper said. If the request is accepted, the two firms will be able to run combined flights over their Pacific routes in what amounts to business integration. The report came after American Airlines and its partners lifted their proposed investment in JAL to 1.4 billion dollars, from a previous offer of 1.1 billion dollars in a bidding war with rival Delta for a stake in JAL.

Germany and Singapore top in World Bank trade ranking

Germany emerged top and Singapore second Friday in a new World Bank logistics survey that measures how efficiently countries trade their goods around the world. Sweden was adjudged the next most trade- friendly nation in the study hailed by the Washington-based institution as "the most comprehensive world survey of international freight forwarders and express carriers." "Economic competitiveness is relentlessly driving countries to strengthen performance, and improving trade logistics is a smart way to deliver more efficiencies, lower costs and added economic growth," said bank chief Robert Zoellick. High income economies dominated the top logistics rankings, with most of them occupying important places in global and regional supply chains, the 155- nation " Logistics Performance Indicators" study showed. By contrast, the 10 worst performing countries were all from the low and lower income groups. "Although the study shows a substantial logistics gap between rich countries and most developing countries, it finds positive trends in some areas essential to logistics performance and trade," the World Bank said.

Taiwan allow Chinese investment

Taiwan will allow Chinese investors to invest up to 500 million dollars in the island's stock market, in a further step towards closer economic ties, the government said Saturday. Starting Monday, Chinese institutional investors can own up to a 10 percent stake in local gas, financial or other companies controlled by the economic ministry, said Taiwan's Financial Supervisory Commission. However, there is an 8 percent ceiling for shipping firms while Chinese investors are barred from buying airlines, air cargo, futures, construction, real estate and broadcasting stocks, it said.

Bangladesh has moved in World's Business ranking

Bangladesh has emerged as an overperforming country in proving efficiency of trading goods around the world, according to a new World Bank survey. Bangladesh ranked 79 th in the global Logistics Performance Indicators (LPI) study released on Friday. It was in the 87 th position in the 2007 survey. The LPI is an "interactive benchmarking tool" created to help countries identify the challenges and opportunities in their performance in trade logistics, the WB says. The LPI 2010 allows for comparisons across 155 countries. It is based on a worldwide survey of operators on the ground (global freight forwarders and express carriers), providing feedback on the logistics ' friendliness' of the countries in which they operate and those with which they trade. The report says Bangladesh has made a significant improvement in customs, infrastructure, and lead-time. In terms of logistic quality and competence, however, Bangladesh was in the 96 th position. "Economic competitiveness is relentlessly driving countries to strengthen performance, and improving trade logistics is a smart way to deliver more efficiencies, lower costs and added economic growth," said World Bank Group President Robert Zoellick. Nine other most significant overperformers are: China, Democratic Republic of Congo, India, Madagascar, the Philippines, South Africa, Thailand, Uganda, and Vietnam. Germany is the top performer among the 155 economies followed by Singapore, Sweden and the Netherlands. According to the LPI, high income economies dominate the top logistics rankings, with most of them occupying important places in global and regional supply chains. By contrast, the 10 lowest performing countries are almost all from the low and lower income groups. Although the study shows a substantial " logistics gap" between rich countries and most developing countries, it finds positive trends in some areas essential to logistics performance and trade. Some are the modernisation of customs, use of information technology and development of private logistics services. WHAT SCORES MEAN The LPI is the weighted average of the country scores on the six key dimensions: (a) efficiency of the clearance process by border control agencies, including customs, (b) quality of trade and transport related infrastructure, (c) ease of arranging competitively priced shipments, (d) competence and quality of logistics services, (e) ability to track and trace consignments, and (f) timeliness of shipments in reaching destinations within the scheduled or expected delivery time. In the LPI index 2010 , Bangladesh scored 2.74 where top country Germany bagged 4.11 points. In the 2007 report, Bangladesh ranked 87 th with a score of 2.47. An overperformer is a country with a higher LPI score than expected -- based solely on its income level. An underperformer is a country with a lower than expected LPI scores. Bangladesh's shipment lead-time came down to 1.41 days in the latest survey from 4.1 days in 2007. In terms of international shipment, Bangladesh ranked 61 st in the latest survey, which was 96 th in 2007. In the customs procedure, Bangladesh ranked 125 th in 2007 , which is 90 th now. The 2010 report has placed Bangladesh in the 72 nd position in terms of infrastructure. The ranking was 82 nd in the 2007 report. The 10 most significant underperformers are Botswana, Croatia, Eritrea, Fiji, Gabon, Greece, Montenegro, Namibia, Russian Federation, and Slovenia. The existence of these two groups, as well as the general dispersion in performance within income groups, suggests that policy has a strong influence on logistics sector performance. According to the report, among the top 10 low-income countries, Bangladesh ranked sixth after Vietnam, Senegal, Uganda, Uzbekistan, and Benin. Congo, Madagascar, Kyrgyz Republic and Tanzania are the other four among the low-income group.