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October 11
Currency traders may test the Bank of Japan. CNN.com
Currency traders may push the yen higher to test the Bank of Japan's willingness to again intervene after finance ministers and central bank governors made little progress this weekend in turning talk of currency co-operation into actual agreements. "Two operating principles should be clear: that the G-20 will not agree formally to manage foreign exchange markets, and that countries will be allowed to manage a dollar decline imposed by a Fed easing cycle," JP Morgan said.
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Three parties win Nobel Prize. CNNMoney.com
Three economists will share the 2010 Nobel Prize for their work on how government policy affects unemployment. The Nobel Prize went to Peter Diamond of the Massachusetts Institute of Technology in Cambridge, Mass.; Dale Mortensen of Northwestern University in Evanston, Ill.; and Christopher Pissarides of the London School of Economics and Political Sciences.
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Bolivia changes coca production law. BBC News
The Bolivian government has annulled a new coca production law which cut by a third the number of coca leaves which growers could sell. Last month, a new coca production law was approved that said growers could sell only a little more than 2kg (5 lbs) of coca leaves per month, down from almost 7kg (15 lbs), and that sales would be controlled by the central government instead of local communities.
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India may intervene in foreign exchange market. Business Week
India may intervene in the foreign exchange market if capital flows “disrupt” the economy. “If the inflows are lumpy and volatile or if they disrupt the macroeconomic situation, we will do so,” Subbarao said. The rupee gained 4.5 percent against the dollar in the past month as global funds pumped a record $21 billion into Indian stocks this year on optimism about the South Asian’s nation’s growth prospects.
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Facebook, Zynga impose fee of private sale of share. Business Week
Facebook Inc. and Zynga Game Network Inc. are charging fees of at least $2,500 for each sale of company shares, a move legal experts say discourages employees from putting equity in the hands of large numbers of outside owners before an initial public offering. Internet startups that have yet to sell shares publicly are trying to rein in the frequent online trading of employee stock, which can carry high administrative costs and can make it difficult for management to control ownership.
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Gymboree sells to Bain. Forbes.com
Children's clothing retailer Gymboree Corp. has agreed to be bought by asset management firm Bain Capital for $1.8 billion in what would be the sixth-largest private equity deal of the year. Gymboree, with offerings aimed at children, has fared better than some other clothing retailers. Its profit and revenue have risen in each of the past five quarters.
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China, Middle East “highly engaged” in internet. CNN.com
People in China and the Middle East are the busiest and most enthusiastic internet users. The Chinese are also among the most receptive to brands and advertisers communicating with them on social networking sites, underlining the substantial and still largely untapped opportunity for online marketers in Asia. Egypt, Saudi Arabia and China topped the list, with about 55% "highly engaged.”
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October 10
New Web code and its privacy concerns. New York Times
Worries over Internet privacy have spurred lawsuits, conspiracy theories and consumer anxiety as marketers and others invent new ways to track computer users on the Internet. The new Web code, the fifth version of Hypertext Markup Language used to create Web pages, is already in limited use, and it promises to usher in a new era of Internet browsing within the next few years.
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Cellphones have indoor maps. New York Times
FastMall has a search engine to help users find stores indoor on its maps. Enter “Banana Republic” and the service places a pin on the map to show the store’s location. Tap the “take me there” button and the service plots a route to the destination. To find the nearest restroom, all users have to do is shake their phone. The various mapping services differ in how they obtain their maps. Some get them from mall management companies or mall developers. Others use maps that are already available online or they copy ones posted on mall directories and some are free.
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Twitter turns to advertising business. New York Times
Twitter has introduced several advertising plans, courted Madison Avenue at Advertising Week, the annual industry conference, and promoted Dick Costolo, who has led Twitter’s ad program, to chief executive — all signs that Twitter means business about business. Twitter’s startling growth — it has exploded to 160 million users, from three million, in the last two years — is reminiscent of Google and Facebook in their early days.
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The Gates Foundation and Higher Education. New York Times
The education gap facing the nation’s work force is evident in the numbers. The Bill and Melinda Gates Foundation, the William and Flora Hewlett Foundation, and four nonprofit education organizations are beginning an ambitious initiative to address that challenge by accelerating the development and use of online learning tools.
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Foreign funds should have centralized EU license. Business Week
French Finance Minister Christine Lagarde said any “passport” that would license funds and investment vehicles from outside the European Union to operate in all the region’s 27 countries should be granted by an EU authority rather than national regulators. The European Commission has proposed laws to regulate hedge-fund and private-equity managers. Member states and the European Parliament haven’t agreed on amendments to the planned rules.
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October 8
UAE reverses Blackberry ban. CNN.com
The United Arab Emirates will not implement a planned ban on all BlackBerry services that was to have gone into effect next week. The threatened ban would have affected more than a half-million BlackBerry users in the country, as well as visitors to Dubai and the rest of the emirates.
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East German brands that survived Western marketplace. Business Week
Only 17% of East German companies survived the enhanced competition of the Western marketplace, according to a 2009 MDR-Werbung study. Today, ostalgie, a new German word combining "east" and "nostalgia,"bolsters those brands: 80% of MDR survey respondents in the former East said their purchases were based more on familiarity than on product quality.
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Corn, soy, wheat prices rise. Business Week
Grain and oilseed prices rose the most allowed by the Chicago Board of Trade after the U.S. government said domestic and world supplies of corn, soybeans and wheat will be smaller than forecast last month. Reduced supplies of corn will increase expenses for meat companies and squeeze margins for makers of corn-based ethanol such as Valero Energy Corp., Poet LLC and Archer Daniels Midland Co.
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Airbus A380 bypasses hubs to target smaller cities. Business Week
Airbus SAS’s A380 superjumbo, designed to carry 500 people per flight between the world’s biggest airport interchanges, is carving out an unexpected new market with direct travel to non-hub cities. “The A380 was designed as a replacement for the 747, but as it’s deployed we’re finding that the execution is very often different than the forecast,” said Chris Tarry.
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Liu wins Nobel Peace Prize. Forbes.com
Imprisoned Chinese dissident Liu Xiaobo won the 2010 Nobel Peace Prize for using non-violence to demand fundamental human rights in his homeland. In Beijing, China's Foreign Ministry lashed out at the decision, saying the award should been used instead to promote international friendship and disarmament.
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October 7
Greek islands for sale. Business Week
Antoine Maalouf arrived at the offices of the Greek Tourism Minister with an unusual request: He wanted to buy a Greek island. Most of Greece's islands are in private hands, and are valued between €3 million and €150 million. While the government doesn't own them, it benefits from the sales through tax revenue and development, which creates jobs and attracts tourists.
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French burqa ban. CNN.com
France's law banning the burqa and other Islamic face coverings in public places is legal, top constitutional authorities in France ruled Thursday, clearing the final hurdle before the ban goes into effect in the spring. The law imposes a fine of 150 euros ($190) and/or a citizenship course as punishment for wearing a face-covering veil.
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Free iPad? Business Week
Selling iPads in Taiwan is illegal, so gray marketers are giving them away with the purchase of absurdly marked-up accessories. Rather than exacerbate supply problems by offering the iPad in all countries at once, Apple has been rolling the device out in phases. Last quarter the tablet became available in Singapore and China. At some point, iPads will go on sale in Taiwan, too. "Apple submitted their application in August and we're still processing it," says the NCC's Tseng. "We don't know when it'll be approved."
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October 6
IMF warns of a currency war. CNN.com
Governments are risking a currency war if they try to use exchange rates to solve domestic problems, the head of the International Monetary Fund has warned. "There is clearly the idea beginning to circulate that currencies can be used as a policy weapon," Mr Strauss-Kahn said.
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AA, BA, Iberia partner. Forbes.com
American Airlines, British Airways and Iberia launched their transatlantic joint business, unveiling new routes and detailing benefits for customers that include a shared frequent flyers program. The new arrangement follows BA's merger with Iberia this year that created Europe's third-largest airline.
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Liverpool FC sells New England Sports. CNN.com
Liverpool Football Club, one of England's most prestigious teams, announced that its board has agreed to sell the team to New England Sports Ventures, the company that owns baseball's Boston Red Sox. Liverpool, which has a huge fan base around the world, is currently owned by two Americans, Tom Hicks and George Gillett.
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GE buys Dresser to expand market share. Forbes.com
GE signed a deal to buy Dresser Inc. for about $3 billion, its latest deal to grow its product offerings in gas and other energy markets. Dresser's products include technologies for gas engines, control and relief valves, measurement, regulation and control systems for gas and fuel distribution.
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S. Korea, E.U. sign FTA. CNN.com
South Korea and the European Union signed a free-trade agreement, eliminating or cutting tariffs on nearly all goods within the next several years. The European Union is South Korea's second-largest trading partner after China, with trade last year totaling $78.8 billion. South Korea is the European Union's eighth-largest trading partner.
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Costco profits overseas. Forbes.com
Increased revenue from selling memberships and strength overseas helped push Costco Wholesale Corp.'s net income up 16 percent in the fiscal fourth quarter. The nation's biggest warehouse club operator has seen the number of customers in its clubs grow as shoppers hunt for deals in the weak economy.
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October 5
China controls 97% of rare earths. CNNMoney.com
Rare earths are essential to the production of many of the goods that are, in turn, essential to modern life. Amidst the latest flare-up in the centuries-old Sino-Japanese spat, Beijing made an unexpected move last month when it halted exports of a little-known commodity group, "rare earth metals," to Japan. Demand for these elements has grown at a remarkable clip over the past decade. The main beneficiary of this growth has undoubtedly been China, which has strategically positioned itself to control some 97% of the rare-earth market.
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In need of a new currency pact. CNN.com
The world's leading countries should agree a new currency pact to help rebalance the global economy. The Institute of International Finance, which represents more than 420 of the world's leading banks and finance houses, warned on Monday that a lack of such co-ordinated rebalancing could lead to more protectionism.
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Japan, China leaders meet, signal diplomatic thaw. CNN.com
China's and Japan's top leaders met in Belgium, indicating a thaw in relations since a diplomatic battle broke out last month over Japan's arrest of a Chinese fishing captain off the disputed Diaoyu Islands. Wen and Kan "agreed to step up people-to-people exchange and communication between the governments, and hold China-Japan high-level meeting at an appropriate time," according to the Xinhua news agency.
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S. Korea to audit banks handling foreign currency. Business Week
South Korean regulators plan to examine holdings of foreign-exchange derivatives at banks after the won gained more than any other Asian currency in the past three months. The Bank of Korea and the Financial Supervisory Service will conduct an audit between Oct. 19 and Nov. 5 on currency swaps and options to check if banks are complying with measures announced on June 13.
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Japan faces food pressure from China. CNN.com
Japanese ventures in foreign countries, such as Brazil and Monzambique, have one thing in common: they highlight Japan's increasingly anxious search for new food sources amid mounting competition from developing countries, and particularly China. Since China started importing soy beans in 2000, after joining the WTO, annual Chinese imports have surged from about 13m tons to an estimated 50m tons this year. Consequently Japan has lost much of its former bargaining power and finds itself at a competitive disadvantage in the face of China's huge buying clout.
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October 4
Brazil’s presidential election run-off. CNN.com
Brazil's ruling party candidate Dilma Rousseff garnered the most votes in Sunday's presidential election but fell short of the majority she needed to avoid a runoff with Jose Serra. If she ultimately prevails, Rousseff, a former Marxist guerrilla, would be her country's first female president. The runoff election is scheduled for October 31.
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VimpelCom combines phone operations with Sawiris. Business Week
VimpelCom Ltd., Russia’s second- largest mobile-phone operator, and Egyptian billionaire Naguib Sawiris agreed to merge their phone assets in a transaction valued at about $6.5 billion The deal would create the world’s fifth-largest mobile- phone company with a combined subscriber base of more than 174 million customers and give VimpelCom, which has operations in many of the former Soviet republics, access to markets in Africa and the Middle East.
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Verizon to refund millions of customers. CNN.com
Millions of Verizon Wireless customers should have rebates on the way after the company said it incorrectly charged mobile phone users tens of millions of dollars for data they didn't use. A defect in Verizon's phone software caused at least 15 million wireless customers to be charged data fees, even if they didn't subscribe to data plans.
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Twitter founder steps down. CNNMoney.com
Twitter co-founder Evan Williams is stepping down as the company's CEO, with COO Dick Costolo taking over as the company's new chief executive. "Building things is my passion, and I've never been more excited or optimistic about what we have to build," Williams wrote.
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Sinopec group pays premium for Brazil oil. Business Week
China Petrochemical Corp. is paying a 76% premium to take a stake in Repsol YPF SA’s Brazilian unit as the world’s biggest energy user switches its hunt for oil reserves to Latin America from Africa. “South America seems to be a key area of focus at the moment,” said Beveridge. “The focus has switched from Africa, and it’s all part of China’s desire for energy security and the exceptional growth in demand for oil.”
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Announcing Google TV. CNN.com
HBO, Netflix, Pandora and the NBA are just a few of the big-name brands teaming up with Google for the rollout of Google TV. The web giant's "multimillion-channel TV" system is expected to launch this fall. Run by Google's Android operating system, it will let users view all kinds of Web content on their televisions.
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Bosnia elections at a crossroad. CNN.com
Bosnians vote Sunday in a key election as the country is at a crossroads between moving closer towards the European Union and NATO in the next four years or sinking deeper into stagnation. Sunday's elections are the sixth since the end of the war in 1995.
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Australia PM makes first international trips. CNN News
Australia's Prime Minister, Julia Gillard, traveled to Afghanistan and met with the country's president to continue working with the Afghan government to help meet its objectives to improve security, governance and development across the country. She is also traveling to Zurich, Switzerland, to meet with FIFA officials about Australia's bid for the World Cup in 2018 and 2022.
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October 1
India assists U.S. in doubling exports. Business Week
With President Obama aiming to double exports in five years, U.S. executives need to focus on the Indian market's untapped potential. Americans are better-liked in India than almost anywhere else in the world. Particularly when compared with attitudes in China and Russia, U.S. brands, celebrities, and culture are well appreciated in India. To boost exports from 2009's $1 trillion level, Obama is increasing the budget of the Commerce Dept.'s International Trade Administration (ITA) by 20%, to $534 million, and will hire an additional 300 ITA staffers next year to serve as international trade specialists at home and abroad.
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September 30
Harley-Davidson markets to females. Business Week
Harley-Davidson has felt the economic downturn keenly and is increasing its female-targeted marketing efforts this year. A bike more suited to women is something Harley customers have long been asking for. The company certainly needs additional sources of growth. New motorcycle registrations have fallen 41% since 2007 overall and 36% for Harley.
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Ivory Coast’s cocoa crop this year. CNN.com
This year's African cocoa harvest, which has just gotten underway, is looking bright. Warm weather is leading many to expect a bumper crop for the main harvest. However a number of problems in the Ivory Coast, the world's largest producer of cocoa beans, are casting a cloud over the longer-term supply outlook and leading to increasing volatility in cocoa prices.
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Volvo: the body is the battery. Forbes.com
Until now the main focus of electric-car designers has been finding places to store the heavy and bulky batteries. However suppose the car's body was itself the battery? If the work goes well, the lightweight carbon-fiber energy panels could find their way into future Volvos, such as the plug-in hybrid the company plans for 2012.
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Vivendi seeks purchase of Vodafone. Business Week
Vivendi SA may accelerate efforts to buy Vodafone Group Plc’s 44% stake in French mobile operator SFR after securing $2 billion from an asset sale. The purchase of the rest of SFR, which analysts value at between 6 and 9 billion euros, would let Vivendi take full control of its largest unit. Vodafone would get more resources to focus on emerging-market expansion.
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Germany: showcase of the euro zone. Business Week
Germany is now growing faster than the U.S. and has a lower jobless rate (7.6% in August vs. 9.6%). In the second quarter its economy bloomed at an annualized pace of 9%. The Federal Labor Agency's IAB research institute predicted that, despite a shrinking working-age population, Germany is set to have the highest number of people working since reunification. "The German economy remains the showcase of the euro zone," Carsten Brzeski, an economist at ING Group in Brussels, says.
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September 29
Parque Arauco expands into Peru, Colombia. Business Week
Parque Arauco SA, the Chilean shopping center developer and operator, expects Peru and Colombia to provide the most growth opportunities for the company in the next five years. Parque Arauco is pushing into Peru and Colombia as it seeks to benefit from a growing middle class, a scarcity of retail centers and strong economic growth. Peru’s economy will expand 6% next year and Colombia’s 4.7%
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Skype in the office. New York Times
Hoping to make inroads into big businesses, Skype joined on Wednesday with Avaya, a major seller of corporate phone systems. As part of the deal, Avaya will integrate Skype into its bundle of products for customers in the United States. Starting in October, businesses with Internet protocol-based phone systems, which most companies have, will be able to make and receive Skype calls, known as Skype Connect.
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North Korea: the next frontier. CNN.com
As North Korea's ruling elite gather for a rare conference of the country's ruling Korean Worker's Party, the world is watching for clues on the future of this secretive country. Foreigners running joint ventures with state-run businesses are staking a claim on the economic prospects for the country, equivalent to opening a shop in Beijing before economic reforms took root or starting an enterprise in East Germany before the Berlin Wall fell.
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September 28
Twitter gets more traffic than MySpace. CNN.com
Twitter's number of monthly unique visitors finally surpassed that of MySpace in August. Though it ranked third among social networking sites, Twitter ranked #50 in the list of top 50 properties overall. Twitter has been moving quickly to capitalize on this growth, such as its announcement of a new version of the front page that will make it easier to access photos, videos and other information without using other websites or programs.
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Upcoming event: international currency war. BBC News
An "international currency war" is underway, Brazil's finance minister, Guido Mantega, has warned. His comments follow a series of interventions by governments to weaken their currencies and boost export competitiveness.
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Taiwan’s new energy law creates renewable source demand. Business Week
Taiwan increased its target for generating power from renewable sources after a new law spurred demand for emissions-free electricity. The nation aims to have 16% of installed power capacity from renewable energy sources by 2025, compared with a previous target of 15.1%.
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AOL buying TechCrunch. New York Times
AOL is buying the influential technology news blog TechCrunch to bolster its growing online editorial business. The acquisition is another step in AOL’s quest to revive its reputation as a hub for online news.
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Peugoet to challenge Toyota in electric car industry. Business Week
PSA Peugeot Citroen will unveil the world’s first diesel-electric car this week to take on Renault SA’s all-electric strategy as both French carmakers play catch- up to Toyota Motor Corp. Peugeot Chief Executive Officer Philippe Varin and Renault Nissan alliance CEO Carlos Ghosn’s face-off exemplifies industry divisions over the kinds of green technology consumers might embrace.
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New chapter for BP in Russia. New York Times
Though its gushing well in the Gulf of Mexico is capped, BP seems doomed to years of hostile regulation and lawsuits in the United States. Now Russian companies are talking to BP about buying billions of dollars in oil fields and other assets to help it pay its gulf cleanup and compensation costs. Along with a partner, BP is planning to explore the rich oil fields in Russia’s Arctic waters, a region that is off limits in the United States and Canada.
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September 27
China resumes its one child policy. CNN News
China will not drop its one-child policy, officials say, 30 years after Beijing decreed the population-control measure. Some critics have urged Beijing to relax the policy, partly because it has skewed China's population. Its workforce is aging, which hurts its ability to compete in manufacturing and has led some companies to move operations to other countries.
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Saab and BMW forming an alliance. New York Times
Spyker Cars, based in Zeewolde, the Netherlands confirmed that Saab and Bayerische Motoren Werke, the German carmaker known for its BMW line, were in talks about cooperating on components in an agreement that could provide Saab with technology crucial to a turnaround. Cooperation among carmakers is common as they seek to share the cost of developing and manufacturing engines and other components.
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China and Russia sign energy agreements. BBC News
China and Russia have signed a series of agreements to boost energy co-operation during a ceremony to open an oil pipeline between the countries. "The smooth completion of the pipeline project is a model of the two countries' mutually beneficial win-win cooperation and a milestone for Sino-Russian energy co-operation."
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Nestle expands into health care nutrition. New York Times
Nestlé plans to invest more than $500 million over the next decade to develop health and wellness products to help prevent and treat major ailments like diabetes and obesity. Nestlé will create a wholly owned subsidiary, Nestlé Health Science, as well as a research body, the Nestlé Institute of Health Sciences, “to pioneer a new industry between food and pharma,” the company said.
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Chavez party wins Venezuela elections. CNN.com
President Hugo Chavez's ruling United Socialist Party of Venezuela won the most seats in Sunday's parliamentary elections but lost the supermajority that has allowed for quick passage of many of Chavez's programs and controversial measures. This marks the first time in five years that opposition parties will have a larger say in the nation's politics.
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Unilever diversifies its portfolio. CNN.com
Unilever is to buy Alberto Culver, the US-based consumer goods company, for $3.7bn (£2.3bn) in a deal that will bring brands such as TRESemmé and VO5 into the Anglo-Dutch conglomerate's stable of haircare and skincare products. Personal care is the fastest-growing category for global consumer goods companies, especially in emerging markets, and the Alberto Culver acquisition will allow Unilever to have more products across a broader range of price points.
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Southwest expands its market share with purchase. Forbes.com
Southwest Airlines is buying AirTran for about $1.4 billion as it seeks entry into a number of smaller markets. Southwest Airlines Co. gets more exposure to existing markets like New York and Boston and it can get into smaller markets it doesn't already serve.
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Walmart expands into South America. BBC News
Wal-Mart, the world's largest retailer, is in talks to buy South African wholesaler Massmart in a deal worth more than $4bn. Declining sales in the US have led to Wal-Mart pushing into emerging markets to maintain growth. "South Africa presents a compelling growth opportunity for Wal-Mart and offers a platform for growth and expansion in other African countries," said Andy Bond, executive vice-president of Wal-Mart for the region.
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September 26
Venezuelan presidential election occurs. CNN.com
Voters in Venezuela headed to the polls Sunday. Even though Venezuelan President Hugo Chavez is not on the ballot, he casts a large shadow over the elections. His ruling United Socialist Party of Venezuela (PSUV) holds 137 seats, and he has taken an active role in this year's campaign.
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New Hong Kong airline service. Business Week
Spring Airlines, China’s only low- cost carrier, starts Shanghai-Hong Kong services tomorrow challenging China Eastern Airlines Corp. and Cathay Pacific Airways Ltd. on flights between the nation’s two financial hubs. “A budget carrier like us aims to meet demand from ordinary, cost-conscious people,” Chairman Wang Zhenghua said in an e-mailed response to questions last week. “There are so many in China that I see huge potential for our future.”
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September 25
Chilean miners to be rescued. CNN.com
Rescue workers in Chile took delivery Saturday of a 420-kilogram (924-pound) cage that is expected to haul 33 trapped miners back to the surface. Authorities have dubbed the device the "Phoenix Capsule" because they say it will help the miners rise up again and give them a new life.
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September 24
iPhone and the camera industry. New York Times
Any iPhone owner knows that there are a lot of gadgets and objects the iPhone has replaced. Among its Web and communications abilities phone owners do not need maps, notepads, music players and a litany of other single-serving devices. iPhone is poised to completely replace for many owners: the standard point and shoot camera.
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September 23
More women going back to work. Business Week
Women who wanted to stay home until their income suddenly became critical to the well-being of their families. In some cases they are increasing their hours to keep the bills paid. Others are taking up employment for the first time as their husbands struggle to find work. With the anemic recovery keeping the job outlook uncertain, the accelerated gender shift is likely to stick, creating new challenges for U.S. families.
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Weather affects global rubber prices. Business Week
Extreme weather across the globe this year, from drought conditions in Russia and Ukraine to flooding in Pakistan and Canada, is lighting a fire under commodity prices. Now the price of rubber, a key industrial commodity, is taking off.
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MBA bound in Africa. Business Week
Over the last few decades, Western business schools have increasingly turned their sights on Africa, with dozens of leading schools launching faculty-exchange programs, sending classes on tours of sub-Saharan Africa, and forging partnerships with local schools. European, Asian, and U.S. schools are taking their involvement in the African management education scene a step further, setting up their own campuses, helping the continent's emerging economies develop executive MBA and other degree programs, and setting up academic research centers.
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Designer clothing not sold online. CNN.com
Prada, like many leading purveyors of designer clothing and luxury goods, until two months ago had avoided selling its products direct via the Internet. Even now it just sells accessories, not clothes. Luxury goods analyst Marshall Cooper, CEO of LuxuryBrandNetwork.com said, "Luxury brands obtain premium prices by creating an aura around their products. On the web, it's much harder to create this aura."
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Russia claims the Arctic region. CNN.com
Three years after Russian divers thrust a rust-proof flag into the seabed below the North Pole, the country is again staking its claim on the Arctic region. The Arctic contains a vast wealth of untapped oil and natural gas, according to a report released in July 2010 by the U.S. Geological Survey.
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Blockbuster is bankrupt. CNNMoney.com
Blockbuster filed for bankruptcy in its latest attempt to overcome nearly $1 billion in debt. Its stores, DVD vending kiosks, by-mail and digital businesses will continue serving customers. But the company will have to implement major cost-cutting measures to repay its investors
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Do you trust Facebook? Forbes.com
A poll conducted for FORBES finds 63% of Americans don't trust Facebook with their personal information and privacy activists and lawmakers circle his company, threatening new regulation. Zuckerberg has built the most promising communications business since the Bell System, a network of 500 million customers who announce births and deaths, shoot videogame zombies, swap photos and reconnect with (and ogle) high school sweethearts 30 billion times a month, three times last year's rate.
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September 22
Coffee prices to increase. CNNMoney.com
Starbucks says that it will raise the price of "labor-intensive and larger-sized" beverages because of soaring prices of green Arabica coffee beans. Starbucks chief executive Howard Schultz said, "We have thus far chosen to absorb the price increases ourselves and not pass them on to our customers. But the extreme nature of the cost increases has made it untenable for us to continue to do so."
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Football as a business model. CNN.com
The important thing to understand about football is that it is a model for contemporary knowledge-based businesses, and not merely some clever management metaphor. Not only does football replicate business problems, it intensifies them and accelerates the process by compressing the time-scale. It is, therefore, easier to identify and analyze best (and worst) practice.
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BHP hires Canadian PMs for Potash. Business Week
BHP Billiton Ltd. hired advisers to three Canadian prime ministers to lobby for its $40 billion hostile bid for Potash Corp. of Saskatchewan Inc. BHP may face competition for the world’s largest fertilizer maker from China, with Sinochem Group hiring Deutsche Bank AG and Citigroup Inc. to assess ways to disrupt the bid.
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Petrobras reverse privatization. Business Week
BHP may face competition for the world’s largest fertilizer maker from China, with Sinochem Group hiring Deutsche Bank AG and Citigroup Inc. to assess ways to disrupt the bid. The government will boost its stake in Petrobras, Latin America’s largest company by market value, to as much as 55% from 39 % now.
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Guinea’s new presidential election date. BBC News
The election commission in Guinea has proposed 10 October as the revised date for the presidential election run-off. Guinea's first democratic vote since independence in 1958 is intended to end a political crisis which began with the military seizing power in December 2008 after President Lansana Conte died.
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September 22
Argentine beef industry affected. Business Week
Argentines have lost their title as the world’s biggest beef eaters after the worst drought in 70 years and government export limits led ranchers to reduce the number of cattle on the Pampas. The reduced herd caused shipments from what was once the world’s biggest beef exporter to plunge about 50 percent this year, allowing Uruguay to pass it as a global supplier. The contraction is hurting meatpacker profits, leading Brazil’s JBS SA, the world’s biggest producer of the red meat, to consider selling plants in Argentina.
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September 21
iPad v. iPhone in China. Forbes.com
Last week Apple launched the iPad in China. Many analysts wonder whether it will succeed, after sales of the iPhone there failed to meet expectations. The initial results seem promising. There are three key things Apple is doing right with the iPad that it failed to do with the iPhone when it launched it in China.
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Less made in USA creates national security risk. CNN News
The decline in American manufacturing is risking the country's security. Manufacturing industry experts will appear at a National Security Oversight Subcommittee to examine the effects the decades-old downturn in U.S. manufacturing may have on the country's national security. The nation's manufacturers are being seduced by China where they can get more for their money due to an undervaluation of their currency, illegal subsidies, and a lack of enforceable laws regarding, worker rights, and environmental and health standards
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Santander to buy M&T. emii.com
U.S. commercial lender, M&T Bank, is planning to sell its majority stake to Banco Santander through a merger with the Spanish lender’s U.S. unit. The deal will put Santander’s Sovereign Bank unit, which had pretax losses for the past three years, under the management of M&T CEO, Robert Wilmers.
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Accommodating the budget shopper. New York Times
Dollar stores have shown the biggest gain in shopper visits over the last year out of all the retailers that sell basic consumer goods, according to market research data. “People are literally running out of cash on hand as the month goes on and they’re looking for smaller package sizes,” said Craig Johnson, president of the retail consulting and research firm Customer Growth Partners.
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Internet freedom declining? CNN News
The search company this week released a new online tool to highlight specific instances of government censorship of the internet in countries worldwide. Google Transparency, the online report shows that internet censorship around the world is increasing over time, and not always in the countries you'd expect.
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Brazil to help develop businesses in Cuba. BBC News
Brazil's foreign minister has offered to help Cuba develop small and medium businesses as part of a drive for economic growth. Cuba could learn from Brazil's successful experience in fostering entrepreneurship.
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Chinese influence in Eastern Europe. New York Times
China is making inroads in Central and Eastern Europe. From the Baltic states to the Balkans, Chinese companies, flush with money, are buying real estate and competing for public infrastructure contracts, especially as Poland and Ukraine work at breakneck speed to jointly play host to the 2012 European soccer championship. “Chinese investments in Poland amounted to 70 million euros in 2007,” or about $92 million at current exchange rates, Mr. Ostaszewicz said. “The envisaged amount of Chinese investment for 2010 could amount to 500 million euros.” That, he added, would create 3,230 jobs.
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India restored for Commonwealth Games. BBC News
Senior officials in Delhi have insisted that the Indian capital will be ready to host the Commonwealth Games. International delegates such as Mr Fennell said "The village is the cornerstone of any Games and the athletes deserve the best possible environment to prepare for their competition.”
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September 20
Major Economies Forum on Energy and Climate. AFP
The 17 nations responsible for 80 percent of carbon emissions blamed for global warming will seek to unblock stalled climate negotiations at the two-day Major Economies Forum on Energy and Climate but analysts expect little progress. "Real change contradicts the business model of the fossil fuel industry," McKibben said, saying the industry was too powerful for Congress to effectively tackle reductions in greenhouse gas emissions. He urged more global action to create a "mass movement" in support of cutting emissions.
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September 18
UAE aluminum industry promoted at German fair. Zawya
Customer awareness of the UAE's growing primary aluminium sector in Europe has received another boost. The Dubai Aluminium CompanyDubai Aluminium Company ") the entirely state-owned enterprise that owns and operates one of the world's largest single-site aluminium smelters -- and Emirates Aluminium ("EMAL")Emirates Aluminium ("EMAL") a high-tech greenfield aluminium smelter in ramp-up stage at the biennial World Trade Fair and Conference ("ALUMINIUM 2010") has assisted in this increased awareness.
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Tariff increase in violation of FTA. VOVNews
The Vietnam Association of Seafood Exporters and Producers (VASEP) has confirmed that the US Department of Commerce (DOC) increase in the level of anti-dumping tariffs on Vietnam’s tra (Pangasius) fish runs counter to the letter and spirit of the free trade agreements between Vietnam and the US. The duty rates are in excess of 100 percent, far exceeding any prior rates in this unfair dumping case lasting more than eight years, and clearly amounting to a punitive tariff on Vietnamese fish fillet exports, said the association.
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September 17
Nokia #1, but not for long. CNN.com
Nokia is the undisputed cell-phone making champion of the world and fighting for its ranking? Nokia has dominated across the globe in low and mid-range priced phones and will continue to be an industry force in the future. "The problem is users are migrating to the smartphone market ... all the innovation is coming from the high-end of the market, and this is where they are not a leader at all."
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South Africa’s booming defense industry. CNN.com
South Africa's military industry has grown because the country was forced to make its own military equipment when the international community imposed sanctions on the apartheid regime. It has become a major exporter of military hardware. According to the Stockholm International Peace Research Institute, the country was the world's 17th largest arms explorer in the period between 2004 and 2008, while over the decade 2000-2009 its military spending increased in real terms by 40%.
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I.B.M. enters Africa. New York Times
I.B.M. will supply the computing technology and services for an upgraded cellphone through India’s largest cellphone operator, Bharti Airtel across 16 nations in sub-Saharan Africa. I.B.M. will handle customer service for Bharti and provide the hardware, software and services to run everything from billing and call-traffic management to delivering new services like music and video.
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J&J to buy Crucell. New York Times
Crucell NV, the Leiden-based biotech company, says it is in advanced talks to be acquired by Johnson & Johnson of the U.S., the world's largest health care products maker.
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Chinese investors for London real estate. New York Times
The London property market might have shown signs of cooling recently, but investors from mainland China and Hong Kong are busier than ever bidding, for example, on luxury apartments in the fashionable Knightsbridge district down the road from Harrods department store and on new homes near the Canary Wharf financial district.
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United, Continental Airlines merge. Forbes.com
Shareholders of United's parent company and Continental Airlines are voting on a deal that would create the world's biggest airline. The companies hope to attract more corporate travelers by combining United's strength in the Midwest, the West Coast and over the Pacific with Continental's presence in Texas, the East Coast and routes to Europe and Latin America.
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September 16
Trade announcement between EU and South Korea. RFI.english
European Union leaders began a summit Thursday with the announcement of a free trade deal with South Korea. Belgian foreign minister Steven Vanackere, whose country holds the rotating EU presidency, described the EU's first free trade deal with an Asian country as 'the most ambitious agreement ever'.
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Pope offers friendship to UK. BBC News
Pope Benedict was welcomed by the Queen at the Palace of Holyroodhouse . Pope Benedict has said he wants to "extend the hand of friendship" to the whole of the UK during his visit.
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South Africa calls for leftward shift. AP
Influential South African political groups are demanding a leftward shift in the country's market-friendly policies, including nationalizing mines, which they say have left too many citizens jobless and poor. In the lead-up to a policy review next week, the country's largest trade union group has called for a radical change in policy. The youth wing of the governing African National Congress is calling for mines to be nationalized. Mining of gold, platinum and coal is a pillar of South Africa's economy.
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Doctors’ group attacks McDonalds in TV ad. New York Times
A new television advertisement that singles out McDonald’s for obesity-related deaths is causing quite the stir. The advertisement was produced by the nonprofit Physicians Committee for Responsible Medicine. “McDonald’s, the world’s largest fast-food chain, serves a long list of high-fat, high-cholesterol items and offers almost no healthful choices,” the group said.
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BP’s Gulf of Mexico oil well sealed. BBC News
BP's ruptured oil well in the Gulf of Mexico is expected to be permanently sealed by Sunday. The relief well is being drilled 2.5 miles (4km) through dirt and rock beneath the sea floor so that the ruptured well can also be sealed from the bottom, ensuring it never causes a problem again.
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President Obama focuses on U.S. trade. Bloomberg.com
Less than two months before congressional elections, with the economy a top issue for voters, Obama is turning his attention to trade, highlighting his goal of doubling U.S. exports over five years as a driver of economic growth. “The more American companies export, the more they produce,” Obama said after meeting with the group at the White House. “And the more they produce, the more people they hire and that means more jobs -- good jobs that often pay as much as 15 percent more than average.”
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Mexico celebrates 200 years. CNN.com
September 15 marks the eve of Mexico's Independence Day. It's the most important day of the year in Mexico, and the festivities build all day leading up to midnight on the country's birthday.
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Kazakhstan’s leader seeks new term. AP
Kazakhstan's aging leader will seek to extend his rule to 2017 in the energy-rich nation's next election and may even seek to stay in power until after 2020. Although critics will see the announcement as an indication of the president's determination to hang onto power, Yertysbayev said the longevity of Nazarbayev's rule will ensure the prosperous development of the oil-rich country's economy.
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Airlines to hire one million employees. CNNMoney.com
Boeing says the airline industry will need to hire more than one million workers over the next 20 years to prepare for a wave of 30,000 new aircraft. "Our challenge is adapting our training to engage the future generation of people who will fly and maintain the more than 30,000 airplanes that will be delivered by 2029," said Roei Ganzarski.
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Philippines offer projects for investment. Business Week
The Philippine government invites bids for infrastructure projects worth 127 billion pesos ($2.9 billion) and may provide tax breaks and financing assistance to lure investors and boost growth. At least ten projects will be offered for bidding starting this month, Economic Planning Secretary Cayetano Paderanga said.
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September 15
Polish-Russian gas agreement finalized. Thenews.pl
Polish PM Donald Tusk said that the gas agreement with Russia will be finalized this Saturday and that the European Commission’s reservations about the deal were “not significant”. "The agreement guarantees Poland long-standing gas security on fairly good terms, at relatively beneficial financial conditions and with relative flexibility of contract compared to other Gazprom trade partners," PM Tusk said.
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September 14
Belarus presidential vote set for December. AP
The Belarusian parliament decided to set the ex-Soviet nation's next presidential election for December, marking the start of a campaign that neighboring Russia will likely try to influence. Russia has a union agreement with Belarus and provided generous subsidies to help keep Belarus' Soviet-style economy afloat.
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Japan files WTO complaint about Canada energy plan. All Headline News
Japan has filed a complaint with the World Trade Organization over Ontario’s green energy plan. Japan said the province's local content provision constitutes a prohibited subsidy under the General Agreement on Tariffs and Trade.
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Australia’s first female president. CNN.com
Julia Gillard was sworn in Tuesday as Australia's first elected female prime minister. Gillard, who was Rudd's deputy prime minister, toppled him from the top job during a power struggle within the Labor government. At the time, Rudd's popularity had tumbled
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Ukraine, EU strengthen ties. Xinhuanet.com
Ukranian President Viktor Yanukovych paid a visit to the European Union, seeking ways to strengthen relations between the two sides in view of the upcoming Ukraine-EU summit, which is scheduled for November this year. "We would like to have a free trade area agreement that would suggest the gradual integration of the Ukrainian economy into the European Union," Yanukovych said.
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National Australia Bank terminates AXA bid. AFP
National Australia Bank terminated its 13.3 billion dollar (12.4 billion US) bid for AXA Asia Pacific. The deal would have been the largest ever takeover in Australia's financial services sector, and would have made NAB one of Australia and New Zealand's leading wealth management groups.
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Paladin seeks global uranium expansion. Business Week
Paladin Energy Ltd., the Australian mining company producing uranium in Africa, is seeking assets in countries including Kazakhstan and Canada to expand reserves. Paladin plans to double uranium oxide production to almost 14 million pounds by 2016 from a projected 7 million pounds in the year ending June 30, 2011, to meet increasing overseas demand for nuclear fuel, especially from China.
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September 13
Argentina credit rating rose. Reuters.com
Standard & Poor's raised Argentina's long-term foreign currency credit rating by one notch due to strong growth and a lower debt load, but the rating remains deep in junk territory. "Despite the prevalence of a confrontational political and economical approach that has increased polarization, we expect GDP to increase by 7 percent in 2010 and 4.5 percent in 2011," S&P said.
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Africa makes economic progress. allAfrica.com
There has been substantial progress in some areas in the African continent. In addition to the steps taken by African governments to improve the investment climate and the creation of an international Arms Trade Treaty, a substantial increase in investment in infrastructure has contributed to Africa's growth.
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September 12
Formosa International Hotels rise. Business Week
Formosa International Hotels Corp. rose the most in one month in Taipei trading, leading tourism shares higher, after the Commercial Times reported Taiwan may raise the daily quota for Chinese tourists to visit the island. Formosa, the island’s largest hotel operator, gained 3.5 percent to NT$507 as of 9:24 a.m., set for the biggest advance since Aug. 16.
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Turkey constitutional referendum. BBC News
Voters in Turkey gave strong backing to a package of changes to the country's military-era constitution. The changes are aimed at bringing Turkey more in line with the EU, which the government wants to join.
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Museveni as presidential candidate in Uganda election. Reuters.com
Uganda's ruling National Resistance Movement party endorsed President Yoweri Museveni as its candidate in next year's presidential election. He came to power in 1986 and will vie for his fourth term in office as east Africa's third largest economy gears up to become an oil producer.
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HP to buy ArcSight. New York Times
Hewlett-Packard is close to a deal to buy ArcSight, a maker of security software. H.P. and its rivals have been eager to grow beyond the low-margin business of assembling and selling computers.
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FCC opens airwaves to Wi-Fi networks. New York Times
When the Federal Communications Commission first approved the use of unlicensed bands of the airwaves decades ago, it began a revolution in consumer electronics first in television remote controls and garage door openers, then in baby monitors and cordless phones, and most recently in wireless computer networks. This month, the F.C.C. is likely to approve what could be an even bigger expansion of the unlicensed airwaves, opening the door to supercharged Wi-Fi networks.
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New global bank rules. CNNMoney.com
Global officials meeting in Switzerland Sunday announced new guidelines to strengthen the financial system by forcing banks to set aside more capital. The goal is ensure that banks have bigger reserve cushions when things go bad and avoid another bank meltdown like the panic of 2008, which led to widespread credit gridlock and fueled the recession.
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September 10
Nokia’s new CEO. BBC News
Finland's Nokia has appointed Microsoft business manager Stephen Elop as its new chief executive. In July, Nokia reported a 40% slump in second quarter profits, as it has struggled to maintain its lead in the booming smartphone market.
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Drilling oil in the Caspian Sea. Eurasianet.org
After a promising offer for bids a month ago, nothing more has been heard from the Turkmen government or Chevron on the prospects for American oil companies to gain permission to drill on the Caspian Sea shelf. Human rights activists are concerned that with the growing potential for Western involvement in Turkmenistan's extraction industries.
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Coffee prices rise. CNN News
A trifecta of bad news has sent coffee futures soaring 44% since June, and companies such as Dunkin' Donuts, Green Mountain and Maxwell House are passing on those costs. Bad weather in South America is threatening crops. Brazil and top exporter Vietnam are talking about hoarding their stocks. The U.S. stockpiles are reportedly at 10-year lows.
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Santander moves into Poland. Business Week
Banco Santander SA, Spain’s biggest bank, agreed to buy Allied Irish Banks Plc’s stake in Bank Zachodni WBK SA for 2.94 billion euros ($3.7 billion) to expand in Poland as growth in Western Europe stalls. “For Santander, it’s a play on Poland and the better future growth we expect to see in the country relative to other places,” said Simon Maughan, an analyst at MF Global in London.
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PG&E pipeline explosion in California. Business Week
A PG&E Corp. pipeline exploded yesterday in the San Francisco suburb of San Bruno, California, killing four people and destroying 38 homes in the utility owner’s second deadly natural-gas blast in two years. PG&E dropped 8.4% to $44.21 as of the 4 p.m. close of New York Stock Exchange composite trading. The drop, PG&E’s biggest since October 2008, wiped out more than $1.5 billion in market value.
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September 9
Ivory Coast approves final voter list. AP
Ivory Coast's president signed a finalized voter list on Thursday, removing the last obstacle to holding a long-delayed presidential election that could bring an eight-year political crisis to an end. President Laurent Gbagbo signed a decree issuing national identity cards to those appearing on the list. He also authorized the final preparations for the election, now slated for Oct. 31.
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Try wine from a screw top bottle. CNN.com
Are you a wine snob? Will you only drink your vino out of a glass bottle with a firmly sealed cork? Or have you already been converted by the nifty screw tops that seem to be on just about every bottle of Australian and New Zealand white, and many South African bottles of wine?
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SAP looks to benefit from Oracle tempest. New York Times
In the technology industry, Larry Ellison’s latest adventure, the rapid-fire hiring of Mark V. Hurd, ousted Hewlett-Packard chief executive, and the resulting Silicon Valley fireworks is entertainment. Bill McDermott, the Oracle tempest, Mr. Hurd in, co-president Charles Phillips departs, H.P. sues is opportunity knocking. Mr. McDermott is co-chief executive of SAP, an Oracle rival in both business applications and database software. “This is net-positive for us,” he said.
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September 8
Introducing Google Instant: a third of your brain. New York Times
Google introduced Google Instant, which predicts Internet search queries and shows results as soon as someone begins to type, adjusting the results as each successive letter is typed. “We want to make Google the third half of your brain,” said Sergey Brin, Google’s co-founder and president of technology. Google has made its new product the default way to search the Web.
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British Airways, American Airlines, Iberia joint venture. Business Week
British Airways Plc’s joint venture with AMR Corp.’s American Airlines on flights across the Atlantic, almost 13 years in the making, will start next month. Iberia Lineas Aereas de Espana SA, the Spanish airline that is scheduled to complete its merger with London-based British Airways by the end of this year, is also part of the joint venture and will contribute about 10% of the venture’s estimated $7 billion in annual revenue.
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Hurd’s future at Oracle. Forbes.com
Oracle plans to pay newly appointed President Mark Hurd a base salary of $950,000 a year. Hurd's move to Oracle has injected new friction into Oracle's relationship with HP. Hurd's future at Oracle was complicated Tuesday when Hewlett-Packard sued Hurd to keep him out of his new job. HP is worried Hurd will use his knowledge of the company to give Oracle an unfair advantage.
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Hunan Province: center of clean energy manufacturing. New York Times
Changsha and two adjacent cities are emerging as a center of clean energy manufacturing. They are churning out solar panels for the American and European markets, developing new equipment to manufacture the panels and branching into turbines that generate electricity from wind.
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Eli Lilly to invest millions in venture capital. Business Week
Eli Lilly & Co., facing competition from cheaper copies of its top-selling drug next year, plans to invest as much as $150 million in three venture capital funds to aid development of new medicines. Lilly is seeking new treatments as drugs accounting for more than 45% of its 2009 sales are set to lose patent protection in the next three years, led by its top-seller, the antipsychotic Zyprexa, in 2011.
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Pepsi is the “Coke” product in India. Business Week
“Pepsi got here sooner, and got to India just as it was starting to engage with the West, and with Western products,” said Lalita Desai. “And with no real international competition, ‘Pepsi’ became this catch-all for anything that was bottled, fizzy and from abroad.”Coca-Cola pulled out of India in 1977 after a change in government regulations would have forced it to partner with an Indian company and share the drink’s secret formula. In 1988, PepsiCo formed a joint venture with two Indian companies and introduced products under the Lehar brand. Lehar Pepsi was introduced in 1990.
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September 7
China’s surprising unemployment problem. Forbes.com
More than 25% of this year's university graduates in China have failed to find a job. Meanwhile executives at nearly a hundred multinationals recently told my firm that their biggest challenge for growth is recruiting and retaining talent.
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September 5
Saudi Arabia encourages foreign investment. Bloomberg.com
Turki AlBallaa wants to bring more foreign investment to Saudi Arabia, the world’s largest oil supplier, however, the judicial system stands in his way. Saudi Arabia maintains some of the world’s strictest civil laws because of its brand of Islam, including sentences of public beheading for drug smugglers and lashings for sexual offenders.
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September 4
Robots taking the place of doctors. New York Times
Mobile robots are now being used in hundreds of hospitals nationwide as the eyes, ears and voices of doctors who cannot be there in person. They are being rolled out in workplaces, allowing employees in disparate locales to communicate more easily and letting managers supervise employees from afar. And they are being tested as caregivers in assisted-living centers.
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Kenya Vision 2030 needs revision. Reuters.com
Kenya's economy will grow by 5.2% in 2010, a government advisory body said, a forecast that exceeds the government's previous estimate. Kenya's Vision 2030, a long term development plan, has a medium-term aim to achieve growth rates of 7-10% and to transform the country into a middle income economy.
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September 3
Sale of Carrefour interests Competition Commission. The Star Online
The sale of hypermarket Carrefour’s Malaysian outlets may be closely watched by the soon-to-be-formed Malaysian Competition Commission. This is because some of the bidders are believed to be existing hypermarket players such as Tesco, Dairy Farm (which owns the Giant chain) and Aeon Co Ltd, the Japanese retail group that runs the Jusco stores.
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Nigeria to hit 10% growth. BBC News
Nigeria's economy will hit double-digit growth by the end of 2011 or early 2012. "There's no week that I don't see two, three, four major investors from other parts of the world. Brazil, Germany even China, all these other countries. All of them bringing or wanting to come and invest in the country," Nigeria’s finance minister said.
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Apple's iPad is being challenged. Business Week
Samsung Electronics Co. and Toshiba Corp. unveiled tablet computers in Berlin, aiming to take market share from Apple Inc.’s iPad with their lower-priced “me-too” devices. Toshiba said at the consumer electronics fair IFA that the recommended price for its Folio 100 tablet in Europe is 399 euros ($511), undercutting the iPad, which goes for about 499 euros in the region. Samsung’s Galaxy Tab, which like Toshiba’s Folio will debut in Europe next month, said it will let phone operators determine the price.
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Petrobras public share to fund oil discovery. BBC News
The Brazilian state oil company, Petrobras, has unveiled plans to sell up to $64.5bn (£41.7bn) of new stock, in one of the world's largest public share offerings. The money will fund the development of recently-discovered oil reserves off the coast of Rio de Janeiro.
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September 2
Japan’s crisis is more than just the Yen. Business Week
Japan's yen crisis is symptomatic of a major policy failure to diversify the economy and make it much less reliant on exports. The yen's jump to a 15-year high says much about where Japan finds itself in 2010. There are three specific things to consider about Japan's plight: pricing, international forces, and political paralysis.
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Spain’s fiscal reconstruction. Asahi.com
With little in Spain to cheer about other than its World Cup victory, Spanish Prime Minister Jose Luis Rodriguez Zapatero said his reconstruction measures will bolster the country's ailing economy and ease international concerns. "We have major infrastructure development. We have a young, well-prepared population. We have a very open, very international economy. What we have to address are reforms to increase productivity. In 2012-2013, we will have reached our growth potential," Zapatero said.
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Discounts increase retail sales. New York Times
Back-to-school season started off on sale, with retailers receiving new merchandise in August, and then marking it down to get it out the door. That led to a decent 3.3% increase in revenue at retail stores open at least a year. All of the discounting was a troubling sign for the fall and holiday seasons. To make it through the worst of the recession, retailers cut prices aggressively, which hurt their profits.
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Saab turns to Asia, East Europe. Business Week
Saab AB is stepping up a campaign to sell its Gripen warplane in Asia and eastern Europe as Switzerland’s decision to delay a $1 billion fighter purchase threatens to curtail production of the 1,320 mile-per-hour jet. Orders from Bulgaria, Romania and Slovakia and a follow-on contract from Thailand are “major near-term opportunities” for the Gripen, which competes with models from Lockheed Martin Corp., Boeing Co., Dassault Aviation SA and Eurofighter GmbH.
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India to monitor online mail traffic. Business Week
India will ask Research In Motion Ltd., Google Inc., Skype Technologies SA and other service providers to set up servers locally and enable security agencies to monitor mail traffic. The Indian government, concerned that terrorists may take advantage of the encryption in smartphones to plan attacks or other illegal activity, is urging equipment makers and service providers to come up with solutions to meet its security needs.
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September 1
Wheat increases world food prices. BBC News
The UN Food and Agricultural Organization (FAO) says that world food prices have risen to their highest level in two years. The increase is due partly to a drought in Russia, which has lead to government export restrictions and a shortage of supply of wheat.
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Apple shows itself into the social networking business. New York Times
Apple jumped into the social networking business, introducing Ping, a service built into iTunes that is intended to help users discover new music and, presumably, buy more songs from Apple. “Apple wants to create even tighter links with iTunes users and keep them a click away from buying a song,” said Mike McGuire, a vice president with Gartner. “Ping will give people more reasons to spend frequently and rapidly.”
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Europe manufacturing exports, sales decrease. Business Week
Growth in Europe’s manufacturing industry slowed in August and export demand fell to the lowest in seven months. While Europe’s economy grew at the fastest pace in four years in the second quarter, companies have been largely reliant on export demand to boost sales.
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Smoking, tobacco ads banned in Greece. BBC News
A new law has come into force in Greece banning smoking in enclosed public spaces and tobacco advertising. It is the second such attempt to curb tobacco addiction in Europe's biggest-smoking nation in just over a year.
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F.C.C. seeks input in wireless internet rules. New York Times
After months spent gathering comments about preserving an open and competitive Internet, the F.C.C. requested more feedback about whether regulations should apply to wireless Internet service. Last month, Google and Verizon proposed a framework that would offer some consumer protections for an open Internet but would allow broadband service providers the freedom to speed the delivery of some digital content for a fee.
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Cellphone ID in China or no service. New York Times
The Chinese government on Wednesday began to require cellphone users to furnish identification when buying SIM cards,in an effort to rein in burgeoning cellphone spam, pornography and fraud schemes. The Ministry of Industry and Information Technology said that about 40 percent of China’s 800 million cellphone users were currently unidentified. Those users will be ordered to furnish identification by 2013 or lose their service.
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Ping An, Shenzhen Development merge. Business Week
Ping An Insurance (Group) Co., China’s second-largest insurer, will merge its bank unit into Shenzhen Development Bank Co. Ping An Insurance serves 51 million retail customers and 2 million corporate clients nationwide, according to its website. Shenzhen Development Bank’s network of more than 300 outlets will let the insurer better serve its customers.
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Australia economy improves, rates increase. Business Week
Economic growth is broadening from the nation’s mining industry, which is undergoing a record investment boom to feed Chinese demand for iron and coal, to households that account for more than half of GDP. Chances have increased that central bank Governor Glenn Stevens will boost rates again before the end of the year.
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Burger King goes private. New York Times
Updated Burger King is in advanced talks to sell itself to a little-known private investment firm called 3G Capital. A deal for Burger King would mark the second time the company was taken private in the past decade. A consortium of firms, TPG, Bain Capital and Goldman Sachs, took the company private in 2002. Burger King was made public in 2006, though the consortium still owns about a third of the company.
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Manufacturing sector grew faster in August. Forbes.com
Manufacturing companies grew faster in August as the industrial sector continues to lead the recovery, and managers' desire to hire shot up to the highest level in nearly 30 years. Rising exports overseas and demand from businesses for capital equipment and supplies have helped propel production in factories for a year.
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August 31
Outlook bright for Sweden’s economy. The Swedish Wire
Prospects for Sweden's economy, a hot issue ahead of upcoming September 19 elections, are looking bright thanks to exports, domestic demand and strong public finances, banks and the country's financial management. Sweden's national financial management authority meanwhile said it expected the government's finances to be balanced next year, and noted the country's economy was recovering more rapidly than previously expected.
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Free flight with a taco? New York Times
Loopt users who check in to taco trucks or airports in San Francisco and Los Angeles on Tuesday can get two flights to Mexico for the price of one, courtesy of Virgin America. The promotion, which marks Virgin America’s debut of service from California to Cabo and Cancun, is the latest example of big companies using location-based apps for marketing.
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Strong exports help economy. New York Times
Even as the broader economy falters amid signs of a weakening recovery, the nation’s agriculture sector is going strong, bolstered in part by a surge in exports. The export growth is propelled by higher prices for many products, including wheat, whose prices have skyrocketed as drought and punishing heat decimated crops in Russia, Ukraine and Kazakhstan. Exports to Asia have been particularly strong, and China is forecast to surpass Mexico next year to become the second-largest foreign buyer of American farm products. Canada is the No. 1 export market.
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August 30
Intel expands its wireless business. Reuters.com
U.S. chipmaker Intel Corp unveiled a deal to buy German chipmaker Infineon Technologies AG's wireless unit for $1.4 billion, as it works its way into the booming smartphone market and cuts its reliance on personal computers. he deal is the second major acquisition in two weeks by Intel with an eye to a future where telephones, tablets, cars and household appliances are increasingly connected to each other through networks.
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Hopes of the Japanese Yen recovery. New York Times
Prime Minister Naoto Kan proposed new stimulus steps, while the Bank of Japan, under pressure from the government, further eased its already easy monetary policy. A yen that has paradoxically surged to 15-year highs despite weaknesses in the country’s economy, coupled with the damaging phenomenon of falling prices known as deflation, continues to hinder hopes of a strong recovery.
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Wanted: Australia, Taiwan FTA. Wall Street Journal
Australia hopes the free trade agreements with China and Japan fade and there is a push for Australia to start talks with Taiwan. Taiwan is Australia's eighth-biggest export target, and the only non-European country among those eight with which Australia does not have an FTA or plans for one.
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August 29
Ugandan President Museveni seeks re-election. Reuters.com
Ugandan President Yoweri Museveni will contest next year's presidential poll, trying to extend a presidency that started in 1986. The early years of his presidency drew wide praise from the west and effusive support from Ugandans for its respect for the civilian population, prudent and liberal economic management and commitment to the rule of law.
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August 28
Santander acquires US car loan portfolio. Business Week
Banco Santander SA, Spain’s biggest lender, said it bought a portfolio of U.S. car loans from HSBC Holdings Plc for $4 billion. The bank has bought businesses in Mexico, the U.S. and Germany to take advantage of its international presence as credit demand falters and funding costs rise in Spain following the worst recession in 60 years.
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August 26
Ford expands in Asia and Africa. CNNMoney.com
Ford Motor Co. will increase its presence in the fast-growing Asian and African markets. Ford plans to launch eight new vehicles in India by mid-decade to meet burgeoning demand overseas. Ford said the purpose of the launch is to "rapidly expand its presence in the fast growing market" of India.
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South Africa: a European opportunity. Business Week
With the 2010 FIFA World Cup well over, the international sports spotlight has moved on, from South Africa to other tournaments in other lands. However, European companies and investors should keep their eyes on Africa. Africa's collective gross domestic product rose at a 4.9 percent annual rate from 2000 through 2008, twice the pace of the preceding two decades.
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Philippines economy grew 7.9%. Business Week
Election spending, rebounding exports and a recovering global economy boosted the Philippine economy to 7.9% growth in the second quarter. It was the first time since 2004 that the economy had grown more than 7 percent in two consecutive quarters.
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India approves new tax bill. Business Week
India’s cabinet approved a proposal that aims to improve compliance by reducing tax rates. The new direct tax bill will seek to reduce corporate taxes to 30% and proposes three tax rates on personal income. The changes to tax law are aimed at reining in evasion that leaves the government reliant on about 27 million tax payers out of a population of 1.2 billion. India has the world’s second-largest population after China.
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HP outbids Dell for 3Par. CNNMoney.com
Both Dell and HP submitted bids for the company last week, but HP raised its bid to just under $1.6 billion after Dell's initial $1.15 billion offer was announced publicly. "Not only is our offer superior to Dell's proposal, HP remains uniquely positioned to execute on this combination given the number of synergies between the two companies," said Dave Donatelli, general manager of HP's servers and storage unit.
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August 25
India’s technology entrepreneurs. Business Week
The success of Infosys inspired a growing number of ambitious, tech-savvy young Indians who began looking beyond the traditional career path of a good government job or a place in the family business. Groups such as the Indus Entrepreneur, established by expatriate Indians in Silicon Valley in the 1980s, helped spread the gospel of entrepreneurship.
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August 24
Barclays competes in South Africa. Business Week
Barclays Plc swept to the top of South Africa’s debt underwriting league table this year as its takeover of Absa Group Ltd. helped boost its share in a market ruled by local banks. “There is strong competition for the South African market,” Theuns de Wet, head of fixed income, currencies and commodities research at FirstRand Ltd.’s Rand Merchant Bank in Johannesburg, said in an interview. “You would have to buy the bank” to be able to compete in debt capital markets.
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Made in China. Eurasia Review
Defense cooperation between China and some Southeast Asian nations are edging ever closer as Beijing-backed Chinese firms ramp up arms transfers to the region. This is amidst calls for ASEAN to be less dependent on western suppliers, which the US seems to be noticing.
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HSBC’s move in South Africa. Forbes.com
HSBC confirmed with Old Mutual to buy its 52% majority stake in Nedbank, South Africa's fourth largest financial services company, for an estimated $7 billion. HSBC's move into this fast-growing emerging market is being billed as an opportunity to capitalize on the booming trade between South Africa and Asia, where the bank gets half its profits.
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Apple v. Hulu and Netflix. Business Week
Apple Inc., seeking to fend off rivals such as Netflix Inc. and Hulu LLC, is in advanced talks with News Corp. to let iTunes users rent TV shows for 99 cents. The content deals would give Apple users access to some of the most-watched shows on TV and increase the appeal of its devices, including the iPad, iPhone and iPod Touch.
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August 23
Nordstrom links online inventory to real world. New York Times
Retailers have been flailing about a bit in their efforts to get people to shop again, deploying all sorts of gimmicks and promotions to spur customer spending. The secret, at least for Nordstrom, has not involved a piercing insight into a customer’s mind. Rather, it has changed the way that it handles, of all things, inventory. The change works this way: Say that a shopper was looking at a blue Marc Jacobs handbag at Nordstrom.com. She could see where it was available at nearby stores, and reserve it for pickup the same day.
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Chilean miners trapped. BBC News
It will take at least four months to rescue 33 miners trapped underground in Chile, the head of the rescue operation has said. The men have been trapped since August 5th, when the main access tunnel collapsed. They are said to be trapped 4.5 miles (7 km) inside the mine, in a space the size of a small flat.
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Thailand resumes diplomatic ties with Cambodia. BBC News
Thailand will resume diplomatic ties with Cambodia after Phnom Penh announced the resignation of ousted Thai leader Thaksin Shinawatra as its economic advisor. Relations between the two neighbors have been strained in recent years because of an unresolved border dispute.
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Colombia peso rises on central bank decision. Business Week
Colombia’s peso rose to an almost two-year high after the central bank said it has no “imminent” plans to buy dollars in the foreign-exchange market, resisting pressure to stem the world’s biggest currency rally this year. Central bank chief Jose Dario Uribe decided against purchasing the U.S. currency after President Juan Manuel Santos earlier this month said he would seek to persuade policy makers to be “more creative, more bold” in stemming gains in the currency.
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Rice is widest discount to wheat since 2008. Business Week
Rice, this year’s worst-performing grain, is set to rally as consumers and investors seek alternatives to wheat after heat waves, wildfires and floods ruined crops across the Northern Hemisphere. The staple food for half the world tumbled 22% this year in Chicago trading while wheat as much as doubled since June.
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Bringing web video to TV. New York Times
Start-ups and tech giants alike are offering what they say are easy ways to pipe shows and movies to a TV, hoping to win over people who might want a cheaper or more diverse alternative to cable and satellite service. Most people do not have the tech-savviness to tackle the hardware and software setup that these products often require. And the companies are not able to offer access to many shows and channels that are on traditional pay TV, nor bundle services like phone service and Internet access at a discounted rate, as TV service providers do.
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August 22
Bahraini investment doubles with USA FTA. Arabianbusiness.com
Bahrain’s Free Trade Agreement (FTA) with the US has seen the Gulf state double its foreign direct investment (FDI). "As time goes on and more countries enter into FTAs with the US, as is the case with the recent signing of Oman, the window of opportunity narrows due to the enhanced competition," Dr. Fakhro said.
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August 21
Australia central bank expects high growth. The Star online
Australia should grow briskly in the next couple of years on high export earnings and booming mining investment but disciplined policies will be needed to curb inflation. “Our expectation is that economic growth in Australia will continue for at least the next couple of years,” Battellino said. This should be Australia’s 20th straight year without a recession, a performance unmatched by any other developed nation.
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August 20
Bank of Scotland and its risky adventure. Irishtimes.com
Unlike its exit, Bank of Scotland (Ireland)’s entry to the Republic’s banking market was a quiet affair, coming through the £2.1 million acquisition of Equity Bank in the low-key days of 1989. The new bank (BOSI) made its initial name as a small-business lender, without really trying to upset the long-established Irish banking status quo. The bank was responsible for a further, and arguably more fundamental, market shake-up in 2000 and 2001 when it introduced the concepts of tracker mortgages and interest-only loans to a very hungry band of Irish homebuyers and owners.
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Wyclef Jean denied candidacy for president. BBC News
Haitian hip-hop star Wyclef Jean has been told he is not allowed to run in the country's presidential election. The Haitian constitution requires candidates to have lived in the country for five years prior to an election.
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The U.S., Europe, and the IMF. Reuters.com
The United States has taken unprecedented action at the International Monetary Fund to try to force Europe to give some of its power on the IMF board to emerging economies. "Secretary (Timothy) Geithner supports reforming the IMF executive board to make it better reflect the realities of today's global economy and ensure that the representation of emerging market and developing countries is strengthened," the Treasury official said.
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Sweden raises economic growth outlook. Business Week
Sweden’s government raised its economic growth forecast and cut its estimate for unemployment less than a month before parliamentary elections. The government increased this year’s growth forecast to 4.5% from a July 5 prediction of 3.3% and said the economy will expand 4% next year instead of 3.8%.
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August 19
G.M. files for I.P.O. and new CEO. New York Times
Now that G.M. has finally filed for its initial public offering, Mr. Whitacre is hoping consumers will quickly forgive and forget its $50 billion bailout by American taxpayers. Whitacre also will step down as chief executive on Sept. 1 and as chairman at year’s end.
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Beijing pushes Ma to dump Taiwan democracy. Taiwan News
Following on the heels of the signing of a controversial cross-strait trade agreement, the authoritarian People's Republic of China is now pressuring President Ma Ying-jeou's rightist Chinese Nationalist Party government to explicitly "oppose Taiwan independence" to maintain "the foundations for mutual trust" across the Taiwan Strait. Ma has repeatedly declared his intention to "put economics first and politics later" and deal with "easier issues first and harder issues later," but Beijing clearly has its own agenda and timetable.
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Intel to buy McAfee. Forbes.com
Intel Corp. buying computer-security software maker McAfee Inc. for $7.68 billion as the chip-maker adds to its arsenal of tools to serve an increasing array of Internet-connected devices, including mobile phones. "With the rapid expansion of growth across a vast array of Internet-connected devices, more and more of the elements of our lives have moved online," Intel CEO Paul Otellini said.
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August 19
VW reintroduces Phaeton to U.S. market. Business Week
Volkswagen AG plans to bring back the $85,000 Phaeton to the U.S., where the sedan flopped and was withdrawn in 2006, as part of the German carmaker’s aim of tripling its share of the world’s second-largest market by 2018. The U.S. is a most lucrative market for high-end sedans and VW has to tackle that potential if it wants to credibly expand its U.S. presence,” said Willi Diez, head of the Nuertingen.
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August 18
LED: the future of lighting. Forbes.com
As energy efficiency becomes increasingly important for controlling costs, improving energy independence and reducing environmental impacts, LED lighting will become the world's leading source of manufactured light. Right now, 20% of the world's electricity is used for lighting; that can be reduced to 4% with LED lighting.
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Argentina may cut wheat export tax. Business Week
Argentine opposition leaders say they have support for a bill to eliminate export taxes on wheat and corn as a way to lure farmers away from soybeans, the country’s biggest crop, and plant more cereals. Economy Minister Amado Boudou said lower taxes on agricultural shipments, which generate about 9% of government revenue, would mean fewer cash handouts for the poor and less spending on roads, schools and hospitals in South America’s second-biggest economy.
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GM to develop small engines with China partner. New York Times
Deepening cooperation with one of its major partners in China, General Motors plans to jointly develop small, fuel-efficient engines and advanced transmissions here with S.A.I.C. Motor Corp. The agreement is part of the American automaker’s plan to create more environmentally friendly technologies and expand its range of offerings in China’s fast-growing auto market.
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Colombia, Venezuela relations renewed. Venezulaanalysis.com
The Colombian Senate President, Armando Benedetti, met with Venezuelan President Hugo Chavez and other top officials. The meeting was the latest step forward in the renewal of bilateral relations following a three-week dispute that stoked fear of military aggression. The officials did not sign any accords, but they discussed the possibility of creating binational zones along their 1,375 mile border, passing a binational organic law, improving security cooperation, launching joint energy and infrastructure projects, and signing a free trade agreement.
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It’s recommended to buy Brazil credit. Bloomberg.com
The cheapest Brazil inflation-linked bonds in 14 months are prompting Bank of America Corp. and SulAmerica Investimentos to recommend the debt on concern President Luiz Inacio Lula da Silva’s successor will fail to keep consumer prices in check. While slowing growth in Latin America’s biggest economy is pushing down investors’ inflation expectations, the next administration may step up spending and reignite consumer price increases.
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August 17
Taiwan approves landmark China trade deal. Forexyard.com
Taiwan's parliament passed a trade deal with Beijing, the most significant agreement between the political foes of 60 years and one that binds Taiwan's economy to China while opening doors to other countries. The government has said the deal would create some 260,000 jobs, while one private forecast has put the net effect of ECFA for Taiwan at a 5.3% improvement in GDP by 2020.
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Reynolds Group buys Pactiv. Forbes.com
Reynolds Group will pay about $4.4 billion for Pactiv, the maker of the Hefty brand trash bags. t's the latest and biggest in a string of deals that has built Reynolds parent company Rank Group Ltd. into a worldwide packaging empire under owner Graeme Hart.
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Marketing Snoop Dogg. Forbes.com
Snoop's manager Ted Chung, a 1999 Wharton alumnus, are helping him build a diversified business that hedges against the public's fickle musical tastes. Partnerships, such as with Katy Perry, helped land the rapper the seventh spot on Forbes' 2010 Hip-Hop Cash Kings list. Making Snoop palatable to marketers was a long, calculated journey.
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Highest bid for Potash? Business week
BHP Billiton Ltd. Chief Executive Officer Marius Kloppers flew to Chicago to deliver the letter containing his $40 billion offer to Potash Corp. of Saskatchewan Inc. CEO Bill Doyle. The acquisition would be BHP’s biggest since buying WMC Resources Ltd. in 2005 and follows the scrapping of its $66 billion offer for Rio. Kloppers, who today said the purchase would diversify sales, is seeking to benefit from surging demand for fertilizer as food needs grow. The global population is set to reach 9.1 billion in 2050, according to the United Nations.
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Russia to waive visa restrictions if wins World Cup bid. BBC News
A Fifa delegation is touring Russia, one of nine countries bidding to stage the competition in 2018 or 2022, as part of a two-month fact-finding tour. Russia has pledged to waive visa restrictions for visitors if it wins the right to host the 2018 World Cup.
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Blackberry dispute in India. New York Times
Indian officials and Research In Motion, the maker of popular BlackBerry devices, appear to be making progress toward resolving a battle over the government’s ability to monitor encrypted e-mail and instant messages. India wants to be able to monitor encrypted corporate e-mail and messages sent over BlackBerry Messenger, a service that allows users to chat with one another.
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August 16
President Susilo Bambang Yudhoyono targets 7.7% economic growth. Business Week
Indonesia's president says he wants Southeast Asia's biggest economy to grow 7.7% before he finishes his second term in 2014. He wants to create 10.7 million new jobs and to slash poverty by up to 10%.
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Shrimp industry affected by oil spill. Forbes.com
The spill has put a crimp in the fishing industry in a state that ranks first in the nation in producing shrimp, blue crab, crawfish and oysters, a $318-million-a year business in Louisiana. The biggest fear is that some fisherman might try to sell oil-contaminated shrimp and scare consumers away again after prices crashed once already this summer.
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Barclays pay for violating U.S. Trade Law. New York Times
Barclays has agreed to pay $298 million to settle accusations that the bank facilitated illegal transfers of dollars for countries that were sanctioned by the United States including Iran, Cuba, Libya, Sudan and Myanmar. For more than a decade, Barclays would strip information from wire transfers funneled through the United States that identified the money as coming from sanctioned countries and entities.
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57 parties running for Kyrgyz election. UPI.com
There are 57 political parties registered with Kyrgyz authorities for parliamentary elections scheduled for October, the election office said in Bishkek. Kyrgyz election officials said there were 100 parties eyeing seats in Parliament, though that number dwindled to 57 after Otunbayeva signed the new law.
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Hulu planning an IPO. Business Week
Hulu LLC, the video website owned by three of the biggest U.S. broadcast networks, is preparing an initial public offering that may value the company at more than $2 billion. Hulu Plus is currently accepting new customers by invitation only and will become widely available in time for the start of the new broadcast TV season in September. Hulu’s subscription offering puts it in more direct competition with Netflix Inc.
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Babangida to run for Nigerian presidency. AFP
Nigerian ex-military ruler Ibrahim Babangida will run for president in upcoming elections, nearly two decades after he controversially overturned a ballot viewed as fair. Babangida becomes the second Muslim from the country's north to seek the ruling party's nomination for the election. "Given my wealth of experience and decades of leadership study, plus the urgent need to confront the challenges of our national lives, I believe the time is ripe for me to serve our people as a civilian president," he said.
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China may be #2 economy worldwide. CNNMoney.com
China is on track to overtake Japan as the world's second-largest economy after the United States. China's economy has been driven by its exports its trade surplus hit an 18-month high of $28.7 billion in July and supported by its massive population. Japan has struggled with a strong currency, which has hurt exports. The yen touched a 15-month high against the dollar earlier this month. It also is coping with an aging and shrinking population.
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Eco-friendly ideas must wait on the economy. New York Times
Hotels eager to satisfy the growing desire of business travelers for eco-friendly lodging are finding that their environmental ambitions have run headlong into the harsh realities of the recession. With reduced operating budgets, hotel owners are putting off the kind of sweeping projects that were common during the bull market and instead focusing on smaller environmental initiatives that don’t cost as much and may even save money at the same time.
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August 15
Nokia seeks U.S. market. New York Times
As Nokia seeks to turn around its smartphone lineup to try to compete with the BlackBerry and with Apple’s iPhone, the company is also trying to shore up its bulk cellphone business, which accounts for 84% of the 432 million devices Nokia sold last year. Nokia holds only an 8% share of the U.S. market.
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Internet usage from satellites. New York Times
WildBlue and HughesNet plan to launch satellites in the next couple of years that will dwarf their predecessors in space. To provide Internet service at speeds many times faster than they now offer, as fast, in some cases, as fiber connections. Satellites can provide service more easily and cheaply per subscriber than their earthbound cable and phone company competitors, particularly to the 14 million to 24 million Americans who live in areas without broadband service.
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August 14
Age of Innovation. New York Times
A search of the database of the professional networking site LinkedIn found that more than 700 people listed their current job title as “chief innovation officer” and that nearly 25,000 had the word “innovation” in their job title. Many others may not have the word in their titles, but their job is to pursue opportunities that result in new products, services and more efficient ways of doing things.
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August 13
Spanish growth accelerated. Business Week
Spain’s economic growth accelerated in the second quarter amid a recovery that may be undermined by government budget cuts and the euro region’s highest unemployment rate. Gross domestic product rose 0.2% from the previous quarter, when it increased 0.1% in the first expansion since early 2008.
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China builds state run search engine. Forbes.com
China plans to create its own government-controlled search engine. The new venture would be fresh competition for Baidu.com, a private company that runs China’s dominant search engine. Baidu has seen its market share grow since Google retreated from the mainland earlier this year.
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Scandinavia’s hydro concerns. Business Week
Scandinavia’s ability to undercut German power prices may evaporate amid the biggest shortfall since 2006 of water needed to generate electricity. A rainy spring raised Scandinavian reservoirs and cut the hydro deficit earlier this year. Now the trend is forecast to change again, with lower than average rainfall forecast for the region from September through December.
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Iceland: the next electric car capital. Forbes.com
Iceland is the ideal test bed for electric vehicles."Iceland's geological evolution makes it especially well suited to harvesting geothermal energy.” Some 75% of Iceland's population lives within 37 miles of Reykjavik, Iceland's capital, and the rural areas (connected by an 840-mile ring road) could probably be wired with just 15 fast-charging stations.
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Sushi students seek jobs abroad. New York Times
Students at the privately owned academy plan to join the growing ranks of professional Japanese chefs eager to serve a growing overseas appetite for sushi. Their plan to seek jobs abroad comes as revenue is declining within the Japanese sushi sector amid a cutthroat price war within the restaurant industry overall, which means consumers expect to pay less and receive more.
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August 12
Blackberry may lose Indian market. New York Times
The Indian government will block encrypted BlackBerry corporate e-mail and messenger services if wireless companies did not enable law enforcement authorities to monitor those messages by the end of the month. Losing access to the wireless market in India would be far more significant for R.I.M. than losing the ability to provide service in the United Arab Emirates. India is one of the world’s fastest-growing wireless markets, and it already has an estimated one million BlackBerry users.
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Apple’s newest market: the elderly. Business Week
The elderly population, looking for easier ways to browse the Web and send e-mail, represents a potentially lucrative market for Apple's iPad. The iPad's intuitive interface makes it appealing to senior citizens around the world, says Takahiro Miura, a researcher at the University of Tokyo: "The iPad is a good tool for the elderly because it's very forgiving of mistakes." Miura's team uses computers to help train senior citizens to rejoin the workforce. "Unlike the PC, it doesn't require prior knowledge," he says.
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Emerging countries’ art market. Business Week
The art market always follows the money. These days that means courting new collectors from emerging economic superpowers. The value of pieces from Brazil, Russia, India, and China, the so-called BRIC countries, has skyrocketed in recent years, mirroring each country's economic growth.
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Peru to see 6% growth. Business Week
Peru's government says its economy is expanding more quickly than initially expected and it now predicts growth of 6% or more this year. Finance Minister Mercedes Araoz credited rapidly growing private sector investment, and said that next year Peru is likely to see growth of about 5 percent.
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Trade gap points to slower economic growth. Associated Press
The United States is selling fewer products around the world and spending more on cheap imported goods, an imbalance that hurts the job market at home and means the economy is even weaker than previously thought. While U.S. manufacturers have reported increased demand from Asia, exports to Europe are falling behind as that region of the world struggles with fallout from its debt crisis. The deficit with the European Union alone increased 26%.
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Williams-Sonoma new online strategy. Business Week
Williams-Sonoma is betting on a more aggressive online strategy and expansion of its moderately priced West Elm chain to revive growth. Williams-Sonoma says online sales of home furnishings will grow by $2.5 billion in the U.S. over the next five years, and CEO Alber wants a big chunk of that growth. The company dominates home furnishings online, with $943 million in Web sales last year, more than triple that of its nearest rival, Crate & Barrel.
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Baltic states show rapid economic growth. Bloomberg
The economies of Estonia, Latvia and Lithuania are recovering from the European Union’s deepest recessions faster than previously estimated as manufacturing picks up and the financial industry improves. The Baltic economies returned to growth in the second quarter from the previous three months, beating economists’ estimates. Exports and industrial output expanded as global trade improved and wage cuts helped increase competitiveness.
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The Chinese TV market. Business Week
In China, price can make or break a TV sale. That's forcing Sony and Panasonic, the world's two largest makers of consumer electronics, to slash some TV prices by a third in China after being outsold 6 to 1 by Shenzhen-based Skyworth. China is poised to become the world's biggest TV market, but foreign brands have difficulty competing there on price.
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Vedanta may buy stake in Cairn India. Business Week
Vedanta Resources Plc is in talks with Cairn Energy Plc on buying a stake in its India unit, the operator of the country’s largest onshore oilfield, as the copper producer seeks to expand outside metals. The move would be a strategic shift by Vedanta, a producer of metals including copper and zinc controlled by Indian billionaire Anil Agarwal.
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August 11
Advertisers seeking to tap into Muslim market. New York Times
For decades, many Western companies have failed to appreciate the unique needs of Muslim consumers. Some companies have offended potential customers by not understanding religious sensitivities. As the Islamic population has grown in size and affluence, there are now 1.57 billion Muslims worldwide and more multinationals are seeking to tap into the market.
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Google increases pace of acquisitions. Business Week
Google Inc. Chief Executive Officer Eric Schmidt has doubled the anticipated pace of acquisitions this year and expects to maintain that rate after some internal projects have failed to spur growth. The company is snapping up startups in social networking, mobile technology and graphical advertising, such as areas where its homegrown efforts needed outside help.
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August 10
Netflix to add films to On-Demand service. New York Times
At a cost of nearly $1 billion, Netflix will add films from Paramount Pictures, Lions Gate and MGM to its online subscription service. Netflix knows it needs to lock up the digital rights to films as customers stop receiving DVDs by mail and start receiving streams via the Internet.
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Kenya delays bond sale with fragile global economy. Bloomberg
Kenya is holding back on plans to sell at least $500 million of sovereign bond because recovery in the global economy is still too tentative. “As long as the environment is still uncertain we will wait,” Economic Secretary in the Finance Ministry Mwau said, citing “fragilities” in Greece, Spain and the U.S. “Risks are still out there. We are continuously monitoring.”
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Brazil coffee demand increases. Bloomberg
Coffee demand in Brazil, the world’s largest producer, may rise more than expected this year as the economy grows at the fastest in 15 years, helping keep prices stay near a 12-year high. Brazilians are increasing their coffee intake, adding take- out cappuccinos and espressos to the filtered coffee taken at home as the beverage industry invests more in advertising and new products, Herszkowicz said.
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New Zealand apple ban in Australia illegal says WTO. National Business Review
Australia’s near 90-year ban on New Zealand apple imports has finally been ruled illegal by a World Trade Organization panel and the onus is on that country to conform to the finding. Australia banned imports of New Zealand apples in the 1921, claiming there was a risk of spreading the fireblight apple tree disease to that country. Australia also raised concerns about European fruit canker or apple leaf-curling midge. The Australian government lifted the outright ban in 2006 but imposed conditions so strict that New Zealand said it made its exports uneconomic.
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Israel loosens import restrictions. Business Week
Israel’s loosening of import restrictions since June has led to an almost two-thirds increase in consumer products such as chocolate, jam and shaving cream entering the coastal enclave. The boost in imports comes as Defense Minister Ehud Barak testified today before a government commission investigating the May 31 commando raid on a flotilla carrying aid to Gaza in which nine Turkish activists were killed.
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Google maps for bicyclists. New York Times
The beta version for bicyclists is just a few months old, but it is already reshaping how bike enthusiasts travel. “For Google Maps not to have bike directions is like the Gap not selling underpants,” said Eben Weiss, the author of the BikeSnobNYC blog. “Even though it’s not 100 percent reliable, it’s still better to have it than in no form at all.”
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International Power and GDF Suez merge. BBC News
International Power has agreed a tie-up with French utility GDF Suez, bringing to an end months of negotiations between the two parties. "This is a strong combination of two world-class businesses that have a highly complementary geographic footprint," said Sir Neville Simms, International Power's chairman. The deal would also enhance growth prospects in Latin America, Asia and the Middle East.
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Argentine warrants beat bonds with increasing growth. Business Week
Argentine securities linked to gross domestic product are outperforming the country’s bonds by the most in five months as surging commodity exports propel the fastest economic expansion in Latin America. South America’s second-biggest economy is “scorching” and may grow 9.7% this year, the most since 1992, as grain output jumps and car exports to Brazil soar.
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Respol to sell shares in Brazilian unit to fund fields. Business Week
Repsol YPF SA, Spain’s largest oil company, filed to sell voting shares in its Brazilian unit to fund exploration and production at offshore fields. Repsol is seeking to raise about $4 billion from the stock sale, valuing the Brazilian unit at about $10 billion. The company is planning to conduct the IPO by the end of the year and won’t wait for Petroleo Brasileiro SA’s planned $25 billion offering, Repsol Chief Operating Officer Miguel Martinez said July 29.
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August 9
Sara Lee Corp CEO steps down. Forbes.com
Sara Lee Corp. Chairman and CEO Brenda Barnes will step down permanently to focus on improving her health following a stroke in May. She led the company, known for its namesake breads and brands including Jimmy Jean and Hillshire Farm, through a restructuring, which shed unprofitable plants, jobs and units to focus on its core food business.
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News Corp sells Chinese units. New York Times
The News Corporation is selling a controlling stake in three Chinese television stations and a movie library to a private equity fund that was formed with the backing of the Chinese government. The sale of the units is the latest indication that the News Corporation is pulling back from China after years of frustration over government restrictions that prevent foreign media organizations from freely operating in a market dominated by state-run companies.
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Indonesia, Turkey vs the BRICs. Business Week
Indonesia and Turkey are beating the world’s biggest emerging markets by almost any financial measure, even while they may be too small to join the BRICs. While China’s gross domestic product is about 4.2 times Turkey and Indonesia’s combined, they lead the “Next 11” smaller emerging nations with the most potential to affect world growth.
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Saudi Arabia, RIM reach Blackberry use agreement. Business Week
Saudi Arabia’s government and Research In Motion Ltd. have reportedly reached an agreement on the use of the company’s BlackBerry instant messaging service in the kingdom. The Saudi situation is one of a growing number of countries in which Canada’s RIM faces scrutiny over BlackBerry e-mail and messaging. The United Arab Emirates, India and Indonesia have also expressed concern that such mobile communications could be used to violate laws or national mores.
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Skype offers $100 million IPO. New York Times
Skype, the popular Internet telephone service, hopes to raise $100 million in an initial public offering of stock. The IPO could help revive the market for technology offerings. Analysts have speculated that Skype’s sale, planned for the Nasdaq market, could be the biggest initial offering in the technology sector since Google went public in 2004 and raised $1.67 billion.
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India’s port closure affects business. Business Week
The closure of the two ports, which together handle about 40% of Indian exports, will disrupt shipments of goods including petroleum products, grains and automobiles, according to R. Venkatesh, vice president of the Western India Shippers Association. Jawaharlal Nehru and the neighboring Mumbai Port were closed yesterday as salvagers worked to recover about 250 containers, which were shed by Mediterranean Shipping Co.’s MSC Chitra after a collision on Aug. 7.
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Internet regulation plan under discussion. New York Times
Google and Verizon introduced a proposal for how Internet service should be regulated and were immediately criticized by groups that favor keeping the network as open as possible. Internet service providers would not be able to block producers of online content or offer them a paid “fast lane.” It says the Federal Communications Commission should have the authority to stop or fine any rule-breakers. It also has exceptions for Internet access over cellphone networks, and for potential new services that broadband providers could offer.
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August 8
South Korea’s new president. BBC News
South Korea's President, Lee Myung-bak, has replaced the prime minister and seven ministers in the biggest cabinet reshuffle since he took office in 2008. Lee has long been mentioned as a rising star and is credited with leading several successful development projects along South Gyeongsang's coast.
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President Medvedev visits Abkhazia unannounced. BBC News
Russian President Dmitry Medvedev has made an unscheduled visit to Abkhazia, his first to the breakaway Georgian region since the brief war between Russia and Georgia two years ago. Last year Russian Prime Minister Vladimir Putin visited Abkhazia for the first anniversary of the conflict and announced Moscow would pay for part of the region's defense infrastructure. Russia has used the anniversary of the conflict to emphasize the strength of its ties with the two breakaway states.
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GDF, International Power to combine assets. Business Week
DF Suez SA and International Power Plc are near an agreement that would have France’s second- largest utility take control of the British company with interests in more than 45 power stations. The transaction would join International Power with Paris-based GDF’s units outside Europe with assets in the U.K. and Turkey.
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August 7
Hungary declines foreign assistance to boost economy. AFP
Hungary wants to take control of its economic decisions and boost growth without relying on loans from foreign institutions as it did in 2008 to avoid bankruptcy. "We would like the people to be able to understand that economic growth is due to the decisions of its government, and not because of all sorts of foreign credit," Varga, head of Prime Minister Viktor Orban's office, said.
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China joining the GPA. China.org.cn
The country is committed to joining the government procurement agreement (GPA) of the World Trade Organization (WTO) "as soon as possible", but still hopes GPA member nations including the US are not "too demanding" on its revised GPA offer, said Sun Zhenyu, China's ambassador to the global trade arbitrator. The GPA is a set of standards that grant foreign companies nondiscriminatory access to government purchases. If the country joins the agreement, it will also allow Chinese enterprises to enter the government procurement markets in 41 WTO member nations that have joined the GPA.
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Fidel Castro in public for first time since 2006. BBC News
Fidel Castro, the former Cuban leader, has delivered his first speech to the national assembly since resigning over ill health four years ago. The speech was a solid, polished performance, Mr Castro's voice stronger than at any point since he re-emerged into public life, the BBC's Michael Voss reports from Havana.
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August 6
HP CEO resigns. New York Times
Mark V. Hurd, who turned Hewlett-Packard into the world’s largest technology company on the back of fierce fiscal discipline, has been ousted from his post for misusing company expenses. Hurd had a “close personal relationship” with a contractor who helped with the company’s marketing and documents were found that had inaccurate expense reports that covered payments made to the woman.
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Komorowski is Poland’s new president. BBC News
Mr. Komorowski is the fourth democratically elected president of Poland and is seen by correspondents as someone who will lead the country into a period of political stability. His first foreign visits would be to Brussels, Paris and Berlin in order to "show Poland's European roots", the new, strongly pro-EU leader said.
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August 5
The new “Silk Road.” Business Week
The new Silk Road spans the globe, connecting companies and consumers in Latin America, the Mideast, Asia, and Africa, and generating some $2.8 trillion in trade, according to the World Trade Organization. King says emerging markets will grow about three times faster than rich nations this year and next. "There are now massive trade connections within the emerging markets," he says. "It means in one sense the emerging world is protected from the worst ravages of the developed world."
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Russia imposes temporary ban on grains. BBC News
Russia is to ban the export of grain from 15 August to 31 December after drought and fires devastated crops. Russia, one of the biggest producers of wheat, barley and rye, exported a quarter of its 2009 grain output. "The aim in this case is not to make more money, but to aid those farmers that need help today," the prime minister said at a government meeting.
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Norway, shielded from economic downturn. Business Week
With Western Europe's lowest jobless rate of 3.7%, vs. 10% in the 16-nation euro zone, Norway doesn't have a lot of people looking for work. When the economic downturn began, the government was able to create jobs by flooding the economy with cash to fix highways and railroads and for programs such as elder care, which shielded Norway from the worst of the credit crisis and kept consumer spending alive.
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Indonesia: economic golden child. New York Times
After years of being known for inefficiency, corruption and instability, Indonesia is emerging from the global financial crisis with a surprising new reputation. “Indonesia is one of the most interesting, most attractive destinations in the world,” said Lanang Trihardian, an analyst at Syailendra Capital, a fund management firm based in Jakarta. “Foreign investors have been flowing to Indonesia from maybe around mid-2009. We are seeing a lot of liquidity coming into Indonesia, and it is mostly going to capital markets, to bonds, to stocks.”
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Catering to the Brazilian consumers. Business Week
Brazilians are helping support sales as Americans cut spending, says Chris Adams, chief executive officer of Sherry-Lehmann. "New York buyers are still the foundation of our business. However to see, in a down economy, a three- to fourfold increase from a market is just fantastic." Brazil's economy is experiencing its fastest growth in 15 years, and the currency has doubled against the dollar since 2003. Armed with high disposable income, Brazilians have descended on New York.
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Curbing the Swiss Franc. Business Week
The Swiss central bank may have saved its economy by embracing Chinese-style currency policy. Faced with a surge in the Swiss franc that threatened to derail growth, the Swiss National Bank has bought euros aggressively, quadrupling its foreign-exchange holdings since March 2009 to slow the currency's advance and protect exporters.
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August 4
Focusing on China’s game market. CCN Go
More foreigners, specifically foreign gaming companies, are hoping to partner with Chinese companies to either import their games to China or export China’s games abroad. There is a trend that many say will only grow in coming years as foreign game developers and publishers want a piece of China’s lucrative gaming market, which was worth more than US$3 billion in 2009.
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New constitution for Kenya? BBC News
A count is under way in Kenya after its referendum on a new constitution, a key measure for political reform. The vote was part of a deal to end violence after the 2007 election, when more than 1,000 people died. If approved, the new document would limit presidential powers and set up a commission to settle land disputes.
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Google to sell brand names as key words in Europe. New York Times
Google that it would change its search policy for most of Europe to allow advertisers to buy and use as keywords terms that have been trademarked by others. Google’s move stems from a decision by the European Court of Justice in March. The court broadly ruled that Google had respected trademark law by allowing advertisers to bid for keywords corresponding to third-party trademarks. The decision will be effective Sept. 14 and extends to the rest of Europe changes that were made in Britain and Ireland in 2008. In the United States and Canada, Google has been using the policy since 2004.
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Outsourcing to India draws Western lawyers. New York Times
India’s legal outsourcing industry has grown in recent years from an experimental endeavor to a small but mainstream part of the global business of law. To win new clients and take on more sophisticated work, legal outsourcing firms in India are actively recruiting experienced lawyers from the West. American and British lawyers, who might once have snubbed at the idea of moving to India, or harbored an outright hostility to outsourcing legal work in principle, are re-evaluating the sector.
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Russia to decrease grain exports with drought. Business Week
Russian officials are discussing curbing grain exports as the worst drought in at least half a century threatens domestic shortages. Russia cut its 2010 harvest forecast yesterday by as much as 18 percent and the Union said exports may slump by almost half. Russia should suspend exports until it can assess whether there will be enough supply to meet domestic demand after crop losses, said Nikolai Demyanov, deputy chief executive officer of Glencore International AG’s unit International Grain Co.
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August 3
BP sells Colombian assets to pay off debt. Forbes.com
BP says it has agreed to sell its oil and gas exploration business in Colombia for $1.9 billion to a consortium of Ecopetrol, Colombia's national oil company, and Talisman of Canada. The company last month agreed to sell assets in the U.S., Canada and Egypt to Apache Corp. for $7 billion. It also plans to sell assets in Pakistan and Vietnam.
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China increases gold market imports and trading. Business Week
China will let more banks import and export gold and open trading further to foreign companies as near-record prices and falling stock markets spur demand in the world’s second-largest buyer of the metal. Gold prices gained. China may “increase foreign members on the Shanghai Gold Exchange and will also study ways to allow foreign qualified bullion suppliers to deliver to the exchange,” the People’s Bank of China said.
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Energy imports may decrease in China. Business Week
China, the world’s largest energy consumer, may reduce monthly coal imports to the lowest level in more than a year in the second half as the economy cools. “Demand growth from industries, including power, steel, construction material and fertilizer, has seen a noticeable decrease since April, and we expect the gain to ease further during the rest of the year,” said Shi Yu, an analyst with China Merchants Securities Ltd. in Hong Kong.
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FCC discusses internet neutrality. Business Week
Google Inc., AT&T Inc., and Verizon Communications Inc. executives are meeting behind closed doors with U.S. officials in talks that critics say reduce the public’s voice in keeping the Internet open. The companies sought a compromise, in a rare Saturday session last weekend at the Federal Communications Commission, on rules proposed by Chairman Julius Genachowski to regulate how phone and cable companies handle Web traffic such as Google’s YouTube videos.
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August 2
Foxconn reopens factory. BBC News
The iPhone manufacturer Foxconn has reopened a factory in India which was shut down temporarily when 250 workers fell sick, sending its shares up 9%.The plant in Madras (Chennai), which makes mobile phone parts, was closed last Monday after workers complained of nausea and giddiness.
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Newsweek sold to Sidney Harman. Forbes.com
Washington Post Co. has opted to sell Newsweek to Sidney Harman, an electronics tycoon with a history of philanthropy, in the hope of reassuring some as to the future of the news magazine. In announcing the sale, the Washington Post Co. said Harman pledged to keep most of the magazine's 300-plus staffers.
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U.S. troops to leave Iraq. BBC News
US President Barack Obama has confirmed the end of all combat operations in Iraq by 31 August. Some 50,000 of 65,000 US troops currently in Iraq are set to remain until the end of 2011 to advise Iraqi forces and protect US interests.The remaining 50,000 troops will stay in the country in order to train Iraqi security forces, conduct counterterrorism operations and provide civilians with ongoing security, said Mr Obama.
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AT&T Inc., Verizon Wireless plan to displace credit card companies. Business Week
AT&T Inc. and Verizon Wireless, the biggest U.S. mobile carriers, are planning a venture to displace credit and debit cards with smartphones, posing a new threat to Visa Inc. and MasterCard Inc. The partnership, which also includes Deutsche Telekom AG unit T-Mobile USA, may work with Discover Financial Services and Barclays Plc to test a system at stores in Atlanta and three other U.S. cities that would let a consumer pay with the contactless wave of a smartphone.
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August 1
Cuba will ease government role in economy. Reuters.com
The Cuban government plans to reduce its role in small businesses, but continue to direct a centralized economy that eschews markets and private property. Cuba has been in the grips of an economic crisis the past two years that has forced it to cut imports, freeze the Cuban bank accounts of foreign businesses on the island and hold off on paying its bills. Murillo said the Cuban government is looking at ways to modernize the island's economy, but that "one cannot speak of reform."
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State owned bidders fuel China’s land boom. New York Times
The Anhui Salt Industry Corporation is a state-owned company that has 11,000 employees, access to government salt mines and a Communist Party boss. The company is developing a complex of luxury high-rises here called Platinum Bay on a parcel it acquired last year by outbidding two other developers to win a local government land auction.
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