Greece cuts protection measures

Greece launched on Monday deep reforms of 136 service occupations from
bread making to butchering to end restrictive practices as the cabinet
met on new measures to fight a second debt crisis. The European Union
and International Monetary Fund have made the application of such
measures a condition of the release in March of the fourth slice of
rescue loans, in this case 15 billion euros ($ 21.1 billion). A broad
law to remove restrictive practices was passed three months ago, and
on Monday the finance ministry published a list of 136 professions and
independent service activities which will no longer be protected by
rafts of conditions, such as quotas and geographical limits. The
activities concerned range from music teaching to beauty care, from
money changing, bread making and insurance broking to interpreting,
electrician services and operating butchers' shops. Physiologists are
also on the list, which was described as a guideline. Press reports in
Athens say every ministry has dragged its feet in preparing lists and
measures to enact following the enactment of the deregulation law in
February. The reports say the delay on service occupations has greatly
irritated auditors from the International Monetary Fund, European
Union and European Central Bank. They are here for a regular analysis
of how Greece is enacting reforms promised in return for a rescue
package of 110 billion euros last May which enabled the country to
avert bankrupty.
---------------Newage

Sony posted loss

Japan's Sony on Monday said it expected to swing to a $ 3.2 billion
net loss for the fiscal year ended March, after delaying its corporate
results to gauge damage from the March 11 earthquake and tsunami. The
latest setback for the technology and entertainment giant comes as it
tries to recover from the impact of the disasters and a massive online
hacking attack that compromised millions of users of its network
services. In a preliminary earnings statement, Sony revised February's
forecast for a 70 billion yen net profit and now expects a net annual
loss of 260 billion yen ($3.2 billion), citing a charge for deferred
tax assets. The firm is due to report its full earnings on Thursday.
The technology and entertainment giant said consolidated sales and
operating revenue are expected to be in line with February's forecasts
despite the impact of the earthquake and tsunami on production. The
maker of PlayStation consoles and Bravia televisions was forced to
shutter plants after the disasters battered supply chains and damaged
facilities. The company said it would book a 360 billion yen non- cash
deferred tax-asset related charge. Cyber attacks in recent weeks
involved the theft of personal data that include names, passwords and
addresses from more than 100 million accounts on its PlayStation
Network and Sony Online Entertainment services. Sony shut down the
PlayStation Network and Qriocity services on April 20.
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Gold price hike

Gold and silver tumbled on Tuesday as investors sold on uncertainty about the direction of monetary policy in the United States, but a softer dollar helped support prices and sentiment. Gold hit a record high of $1,518.10 a troy ounce on Monday. It was last bid at $1,504.36 from $1,508.45 on Monday. Spot silver ceded nearly 5 per cent to $44.61 an ounce after touching $49.31 an ounce on Monday, within reach of $49.48 hit in January 1980. It was bid at $45.77 an ounce at 1143 GMT from $46.90 late in New York on Monday and is heading for its biggest daily loss since March 15. ‘The rally has been strong, it’s not surprising to see profit-taking ahead of the FOMC meeting,’ said Peter Fertig, a consultant at Quantitative Commodity Research. ‘Markets expect it will be a dovish statement from the US Fed, but there are worries about them ending (Quantitative Easing) ahead of time.’ Tighter US policy would mean less cash floating around the financial system looking for a home and fewer worries about inflation, which investors protect against by buying gold. The Federal Open Market Committee meeting starts later on Tuesday and concludes on Wednesday. The US central bank is expected to confirm it will stick to plans to complete a $600 billion bond-buying program. The post-meeting news conference by Fed chairman Ben Bernanke on Wednesday will be the first regularly scheduled briefing by a Fed chief in the bank’s 97-year history. ‘The ... meeting is a possible event risk but we believe post-meeting comments will confirm that US short-term rates will remain low for the time being which would be positive for precious metals,’ Credit Suisse Private Banking said in a note.

ADB's food warning to ASIANS

Soaring global food prices threaten to push tens of millions of Asians into extreme poverty and cut the region’s economic growth this year, the Asian Development Bank warned in a report Tuesday. Coupled with skyrocketing oil prices, the spike poses a serious setback for developing Asia after having rebounded rapidly and strongly from the 2008 global economic crisis, said chief ADB economist Rhee Changyong. ‘Left unchecked, the food crisis will badly undermine recent gains in poverty reduction made in Asia,’ Rhee said in a statement. Domestic food inflation in developing Asian nations hit 10 per cent at the start of this year, with double-digit rises in the price of wheat, corn, sugar, edible oils, dairy products and meat, the Manila-based institution said. If this rate continues, as is likely, 64 million people in developing Asia could be pushed into extreme poverty and economic growth could be reduced by up to 1.5 percentage points this year, the bank warned. Vietnam has been one of the hardest hit nations in terms of rice inflation, despite being a major exporter, according to the ADB. It has seen domestic rice retail prices shoot up 36.7 per cent since June last year, while Indonesia and Sri Lanka have endured increases of least 21 per cent. China recorded rice price rises of 12.6 per cent, near the average for developing Asia. Wheat price increases were most severe in Kyrgyzstan, with a jump of 67 per cent since June last year, and Bangladesh, 50 per cent, according to the ADB. Wheat prices spiked by about a third in Sri Lanka, Mongolia and Tajikistan. On a positive note, the bank said there was ample room to improve rice and wheat yields, with the world’s top 10 rice producers averaging just 4.074 tonnes per hectare (2.47 acres) compared with top performing Egypt’s 9.883 tonnes.

General Electric has profit

Profits have surged at US conglomerate General Electric (GE), adding to the wave of corporations whose earnings have exceeded expectations. GE said net earnings had risen by 79% to $3.4bn (£2.01bn) for the first three months of 2011 from a year earlier. It also increased its dividend. Revenue rose 6% to $38.45bn, when many analysts had expected a decline for the quarter. Apple, Intel, Nokia and McDonald's have all beat forecasts this week. GE is seen as a bellwether for the US economy, given the breadth of its operations, which include a financial arm as well as industrial units. The profit growth was fuelled by growth in its healthcare and transport divisions, and net profits of $1.8bn at GE Capital. "As today's results show, GE has emerged from the recession a stronger, more competitive company," said GE chief executive Jeff Immelt. The dividend increase - by one cent to 15 cents - is the third in the past 12 months, and is effective from the third quarter of this year.