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[IMAGE]=09[IMAGE]=09[IMAGE]=09[IMAGE]=09Business this week
=09=09=09=09June 7th 2001
=09=09=09=09From The Economist print edition =20
=09=09=09=09
=09=09=09=09
=09=09=09=09Steel resolve
=09=09=09=09
=09=09=09=09George Bush announced that America would investigate unfair tra=
de practices=20
in the global steel industry with the intent of imposing new anti-dumping=
=20
duties.
=09=09=09=09
=09=09=09=09See article: George Bush's new plan for the steel industry E+
=09=09=09=09
=09=09=09=09In response to the United Nations Security Council=01,s decisio=
n on sanctions,=20
Iraq cut off its oil exports of about 2.1m barrels a day. Saudi Arabia said=
=20
it would make up the difference.
=09=09=09=09
=09=09=09=09See article: OPEC needs to keep Iraq from destabilising the wor=
ld's oil=20
marketE+
=09=09=09=09
=09=09=09=09Economy measures
=09=09=09=09
=09=09=09=09Consumer confidence in the euro area fell more heavily than exp=
ected in May,=20
after a fall of business confidence had suggested that, although Europe=01,=
s=20
economy has weathered the global downturn better than most, it is now=20
slowing. But euro-area unemployment fell slightly in April, to 8.3%.
=09=09=09=09
=09=09=09=09
=09=09=09=09
=09=09=09=09
=09=09=09=09
=09=09=09=09
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=09=09=09=09
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=09=09=09=09
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=09=09=09=09
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=09=09=09=09
=09=09=09=09The productivity of workers in the United States fell in the fi=
rst quarter by=20
1.2% at an annual rate, according to revised figures. This is the first tim=
e=20
that labour productivity has fallen since 1995.=20
=09=09=09=09
=09=09=09=09In an effort to stave off fears of a debt default and to buy ti=
me for the=20
country=01,s economy to pull out of a three-year recession, Argentina annou=
nced=20
that it had swapped $29.5 billion of bonds falling due before 2005 for new,=
=20
longer-dated bonds.
=09=09=09=09
=09=09=09=09See article: Argentina's bond swap buys time at a high price=20
=09=09=09=09
=09=09=09=09Legal matters
=09=09=09=09
=09=09=09=09A jury in California ordered Philip Morris to pay damages of $3=
billion for a=20
smoker with lung cancer=01*by far the biggest such award against a tobacco=
=20
company. Philip Morris will appeal.
=09=09=09=09
=09=09=09=09See article: Another blow against Big Tobacco E+
=09=09=09=09
=09=09=09=09Flight details
=09=09=09=09
=09=09=09=09Orbitz, an online travel agency set up by five American airline=
s, was=20
launched with a bang, and promptly went down after being deluged by=20
customers. United, American, Delta, Continental and Northwest expect to tak=
e=20
a chunk of business from their two main rivals, Expedia and Travelocity.
=09=09=09=09
=09=09=09=09America=01,s Federal Aviation Administration outlined a ten-yea=
r plan to=20
overhaul the country=01,s airline industry. Greater passenger capacity, mor=
e=20
runways and new routes will be introduced to reduce delays and improve=20
safety.=20
=09=09=09=09
=09=09=09=09See article: How to improve America's airtraffic control E+
=09=09=09=09
=09=09=09=09General Electric is poised to sell Honeywell International=01,s=
regional=20
jet-engine business in an effort to persuade the European Commission to=20
approve GE=01,s $40 billion bid for Honeywell.
=09=09=09=09
=09=09=09=09Shares in Railtrack, operators of Britain=01,s rail network, di=
pped 17% in one=20
day as the beleaguered company was due to drop out of Britain=01,s FTSE 100=
=20
share index. It will be replaced in the index by Next, a purveyor of=20
mid-market clothing.=20
=09=09=09=09
=09=09=09=09See article: More trouble for Railtrack E+
=09=09=09=09
=09=09=09=09Swiss bank accounts
=09=09=09=09
=09=09=09=09Moody=01,s, a credit-rating agency, downgraded UBS, after the S=
wiss bank had=20
failed to make big advances in onshore private banking for the world=01,s v=
ery=20
rich. Domestic banks have grabbed much of this business in their own=20
countries.
=09=09=09=09
=09=09=09=09CSFB was deemed to have broken New Zealand stock-exchange rules=
in a takeover=20
scrap for Montana, a big winemaker. Indian regulators have also banned it=
=20
from stockbroking after a price-fixing investigation. Its now defunct=20
Japanese derivatives business broke securities laws and, in America, it is=
=20
undergoing investigations linked to rigged initial public offerings.
=09=09=09=09
=09=09=09=09Business in Europe
=09=09=09=09
=09=09=09=09After 12 years of tortuous negotiation, the European Union at l=
ast reached a=20
provisional agreement on a takeover directive. The directive still has to b=
e=20
formally approved, however, and the European Parliament may yet decide to=
=20
block it.
=09=09=09=09
=09=09=09=09See article: The EU takeover directive may yet pass E+
=09=09=09=09
=09=09=09=09Germany=01,s telecoms regulator ruled that companies that have =
acquired the six=20
third-generation mobile-phone licences will be able to share the costs of=
=20
building new infrastructure. The money- saving scheme is likely to be=20
challenged by Vodafone and Deutsche Telekom, both incumbents with upgradabl=
e=20
networks already in place.
=09=09=09=09
=09=09=09=09See article: Sharing 3G networks=20
=09=09=09=09
=09=09=09=09
=09=09=09=09
=09=09=09=09
=09=09=09=09
=09=09=09=09
=09=09=09=09
=09=09=09=09
=09=09=09=09
=09=09=09=09EPA
=09=09=09=09EPA
=09=09=09=09
=09=09=09=09
=09=09=09=09
=09=09=09=09
=09=09=09=09
=09=09=09=09
=09=09=09=09Cadbury Schweppes, a British drinks firm, said it was close to =
an agreement=20
to buy Orangina, a soft-drinks company, from Pernod Ricard, a French=20
counterpart, for euro700m ($826m).=20
=09=09=09=09
=09=09=09=09Italy=01,s government called on EDF, a French power giant, to r=
educe its=20
recently acquired 20% stake in Montedison, Italy=01,s largest power company=
, to=20
under 2%. Italy objects to EDF=01,s involvement in its newly opened power=
=20
markets because France has been slow to deregulate its own market. EDF said=
=20
=01&non=018.
=09=09=09=09
=09=09=09=09Saudi Arabia=01,s government signed three deals worth $25 billi=
on to develop=20
natural gas reserves, two headed by ExxonMobil and one by Royal Dutch/Shell=
.=20
The Saudis hope that the use of foreign private capital will help to revive=
=20
the kingdom=01,s state-dominated economy which has not grown fast enough.
=09=09=09=09
=09=09=09=09See article: Investment in Saudi Arabia E+
=09=09=09=09
=09=09=09=09Martin Ebner=01,s BZ Group took a 10% voting stake in Investor,=
a Swedish=20
holding company controlled by the Wallenberg family. Mr Ebner wants a share=
=20
buyback, spin-offs and a loosening of the grip of the Wallenbergs on the=20
company.
=09=09=09=09
=09=09=09=09See article: Ebner v the Wallenbergs E+
=09=09=09=09
=09=09=09=09
=09=09=09=09
=09=09=09=09
=09=09=09=09
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