All Nippon mulls taking over India’s exports rise as global Fox grants brief extension to JAL’s overseas routes recovery boosts demand cable contract In the Pipeline 26 Global Economy 27 Bottom Line 29 MARKET PATH “Only buy something that you’d be perfectly “A successful life is one that is lived through happy to hold if the market shut down for 10 understanding and pursuing one’s own path, not years.” chasing after the dreams of others.” –WARREN BUFFETT –CHIN-NING CHU Saturday, January 2, 2010 INFORMATION K I O S K Crude oil prices climb 78% in 2009 REUTERS NEW YORK Oil finished the year above $79 a barrel on Thursday, climbing a whopping 78 percent in 2009 and OPEC output rose in Dec notching the biggest annual gain in a BLOOMBERG out to be incorrect.” decade. Crude oil futures have more than The market roared back from NEW YORK The Organisation of doubled from a four-year low of depressed levels seen at the end of Petroleum Exporting Countries $32.40 a barrel touched in 2008 that came as the global econom- (OPEC) increased crude-oil produc- December 2008, which caused ic crisis sapped demand. tion in December to the highest OPEC to curb production. Prices US crude for February delivery set- level in a year as members took rose 8 cents to settle at $79.36 a bar- tled up 8 cents at $79.36 a barrel, advantage of rising prices, a rel on Thursday the New York compared with a close of $44.60 on Bloomberg News survey showed. Mercantile Exchange, a six-week December 31, 2008. London Brent Output averaged 28.965 million closing high. Oil futures climbed 78 crude fell 10 cents on Thursday to barrels a day this month, up 65,000 percent this year and tripled over settle at $77.93. barrels from November, according the past decade. This year’s rise in US oil futures is to the survey of oil companies, pro- Nigeria’s output rose 100,000 bar- the sharpest annual percentage gain ducers and analysts. The 11 coun- rels a day to an average 2.005 mil- since 1999, when output cuts by pro- tries with quotas, all except Iraq, lion, the biggest increase of any ducers helped revive prices from lows pumped 26.615 million barrels a member and the highest level since near $10 a barrel. day, 1.77 million above their target. March 2008. The country exceeded Oil on Thursday was still almost All members exceeded their pro- its target by 332,000 barrels a day. A half the all-time high of $147.27 hit in duction goals. cease-fire and amnesty agreement CURRENCY BUY QR SELL QR July 2008. OPEC cut output quotas by 4.2 with the Movement for the US 3.6315 3.6485 After sliding to a five-year low The oil market roared back from depressed levels seen at the end of 2008 million barrels to 24.845 million Emancipation of the Niger Delta, Euro 5.2091 5.3066 under $33 at the end of 2008, oil that came as the global economic crisis sapped demand. (BLOOMBERG) barrels a day last year as fuel the country’s main militant group, Pound Sterling 5.8398 5.9105 prices staged a steady climb to a high demand tumbled during the worst allowed Nigeria to pump more oil Indian Rupee 0.077 0.0787 of $82 in October this year. The annu- underway,” Mike Fitzpatrick, vice as demand continues its gradual global recession since World War II. before an attack on Dec. 19. Pakistani Rupee 00 0.0435 al average 2009 price was $62, broad- president at MF Global in New York, recovery. The group left the targets Kuwaiti output climbed 35,000 Philippine Peso 00 0.0802 ly in line with analysts’ predictions at said in a note. Oil’s rise of nearly 80 “We expect 2010 to be a year of unchanged at a December 22 meet- barrels to 2.25 million barrels a day. Sri Lankan Rupee 00 0.03248 the end of 2008 of $58.48. percent this year was part of a broad- transition between the demand con- ing in Luanda, Angola. Compliance The country produced 28,000 bar- Bangladeshi Taka 00 0.0532 Crude was supported on Thursday based rally across commodities and cerns of 2009 and the supply con- was at about 60 percent, according rels a day more than its quota, by data from the US Energy equities as investment returned to cerns of 2011, with in addition geopo- to the survey. exceeding its target by the least of Nepalese Rupee 00 0.0492 Information Administration (EIA) markets drained by the global eco- litical developments having a height- “It looks like OPEC production any member. Japanese Yen 0.03905 0.04 that showed declines in crude oil nomic recession. ened importance,” Barclays Capital will continue to rise in coming Only Iraq, which isn’t subject to a Kuwaiti Dinar 12.532 12.774 stockpiles last week, boosting expec- “While it was nominally a very said in a research note. months,” said Michael Lynch, presi- quota, and Saudi Arabia, OPEC’s Saudi Riyal 0.957 0.9736 tations of demand recovery in the strong year for commodities, it was a US crude stockpiles fell by 1.5 mil- dent of Strategic Energy & largest producer, cut output. Omani Riyal 9.246 9.486 world’s largest energy user. relative weak year for passive lion barrels in the week to December Economic Research in Winchester, Iraq pumped 2.35 million barrels UAE Dirham 0.977 0.9938 “Momentum seems to run out near investors,” said Olivier Jakob, oil ana- 25, just off an expected 2 million-bar- Massachusetts. “OPEC is counting a day, 50,000 barrels a day less than Bahraini Dinar 9.541 9.691 $80 as market participants ponder lyst at Petromatrix. rel decline, while gasoline inventories on increased demand. They will be last month and the lowest level Source: www.dohabank.com.qa the conundrum of whether or not a Next year, analysts expected oil showed a surprise decline, data from in trouble if their assumptions turn since April. sustainable recovery is actually prices to consolidate this year’s gains the EIA showed on Wednesday. Rupee drops on dollar demand buzz BLOOMBERG are agreements in which assets are bought and sold at current MUMBAI India’s rupee dropped prices for future delivery. Non- on speculation rise in crude oil deliverable contracts are settled prices will boost dollar demand in dollars rather than the local from refiners. currency. The rise in crude oil prices to a India’s exports rose for the first six-week high in New York is time in 14 months as a recovery forcing Indian refiners to pro- in the global economy boosted cure more US currency in the year-end holiday demand for the foreign-exchange market. The South Asian nation’s products. price of the fuel jumped 78 per- Overseas shipments cent in 2009 as recovery from a increased 18.2 percent to $13.2 global recession boosted billion in November from a demand. India, Asia’s third- The rise in crude oil prices to a six-week high in New York is forc- year earlier after sliding an largest economy, gets more than ing Indian reﬁners to procure more US currency in the foreign- average 21 percent per month 70 percent of the crude it needs exchange market. (BLOOMBERG) since October 2008, according from abroad. to a trade ministry statement. “Oil prices are a concern for Mumbai. Offshore contracts indicate Imports fell 2.6 percent to $22.8 the rupee since there is not The rupee slipped 0.2 percent bets the rupee will trade at 46.66 billion in November, resulting enough dollar supply,” said to 46.6175 per dollar at the 5 pm to the dollar in a month, com- in the trade deficit narrowing Sudarshan Bhatt, chief currency close in Mumbai, according to pared with expectations for a to $9.6 billion from $12.3 billion trader at Corporation Bank in data compiled by Bloomberg. rate of 46.55 yesterday. Forwards a year ago. US dollar loses lustre as reserve currency in a turbulent decade AFP The greenback also faced the same percent in 2001. the head of the IMF whether the dol- misfortune against other key curren- The dollar also is less a benchmark lar’s status was being threatened. WASHINGTON The US dollar lost much cies. in official reserves than it was 10 years Today, he talks about it himself. “I of its luster over the past decade as its While it was roughly stable against ago. On December 31, 1999, the expect the dollar to remain the princi- status as a global reserve currency was the British pound, it has lost nearly 10 International Monetary Fund (IMF) pal reserve currency for some time,” challenged and its value against most percent against the yen and a hefty 35 estimated the share of dollar-based IMF managing director Dominique key currencies saw erosion. percent against the Swiss franc in the assets held by governments, excluding Strauss-Kahn said in a speech in On the foreign exchange market, past decade. The trade-weighted US the United States and China, was 74.9 November in Beijing. the euro was virtually at parity with dollar index, a measure of the value of percent. However, on September 30, Ten years ago, the then-Federal the dollar on December 31, 1999, but a the US dollar relative to other world 2009, it dipped to 70.2 percent. Reserve chief Alan Greenspan raised decade later the greenback has fallen currencies, has lost 11 percent in the The dropping dollar share was off- in Congress the possibility of a mone- by 30 percent against the single past 10 years. set mostly by the euro, which some tary union involving ‘dollarized’ coun- European currency. One of the biggest falls, by 37 per- skeptics had doubted could rise to the tries. The euro, launched on January 1, cent, was against the Canadian dollar, challenge as a common European cur- The greenback was once common 1999, ended in New York trading at the currency of the top US trading rency at its launch. in everyday life in Argentina, which 1.4323 dollars on Thursday, the last partner. Despite the bearish perform- “The euro is already beginning to was seriously considering ditching the trading day of the year. ance, the dollar remains the bench- challenge the US dollar’s status as the peso, as well as in Bolivia, Russia and The dollar’s rapid fall against the mark of the exchange market. world’s primary reserve currency and the Philippines. euro is ironic as the US Federal According to recent figures from it is an understatement to say that Today, the South American trade Reserve had to come to the rescue of the Bank for International over the past 10 years, the euro has bloc Mercosur, led by Brazil and the faltering single European currency Settlements, which serves as a bank come a long way,” said Kathy Lien, Argentina, has abandoned the dollar in September 2000 as part of a coordi- for central banks, the share of trans- director of currency research at Global in favor of local currencies for their nated market intervention by major actions involving the dollar fell The trade-weighted US dollar index, a measure of the value of the US dollar Forex Trading. trade, and Moscow sees the future of central banks. slightly to 88 percent in 2007 from 91 relative to other world currencies, has lost 11 percent in the past 10 years. In 1999, it was inconceivable to ask the ruble as a reserve currency. 26 Saturday, January 2, 2010 In the Pipeline All Nippon mulls taking Germany faces cut in Russian crude supply over JAL’s overseas routes REUTERS MOSCOW Russia and Belarus have failed to reach agreement on 2010 oil supplies, a Russian REUTERS has been burdened by unprof- have asked JAL to completely government source told itable domestic and internation- withdraw from overseas flights Reuters on Thursday, in a move TOKYO Japanese airline All al routes. JAL has already said it and hand the business over to All potentially exposing Germany Nippon Airways is considering will terminate flights on 30 Nippon, the Mainichi Shimbum and Poland to cuts in Russian taking over the international routes, including 13 internation- said on Thursday. crude supplies. routes of struggling rival Japan al, by June. All Nippon competes But Transport Minister Seiji Moscow and Minsk had a Airlines Corp , the Yomiuri with JAL on more than 30 of All Maehara has been opposed to similar dispute in January 2007, Shimbun newspaper said on Nippon’s 40 international routes, having only one Japanese airline when they could not agree on Friday. the paper said. offer international service, the prices of crude and transit fees, All Nippon is looking to “We want to increase flights to Mainichi said. and the row ultimately shut increase its overseas flights by Europe and the United States,” JAL has applied for a bailout down supplies for a few days. targeting profitable routes to the Yomiuri quoted an All from a state-backed organization The government source told Europe and the United States Nippon executive as saying. of turnaround specialists, which Reuters talks would be contin- and has told Japan’s government “We will need to consolidate will decide whether to support ued in early January and, as yet, of its interest, the Yomiuri said, routes in Asia where there is an the airline this month. oil supplies to Belarus would citing unidentified sources. JAL, overlap.” No one was available for The Development Bank of not be cut. whose shares hit a record low comment at either airline. Japan has agreed to increase the Russia supplies oil to Europe this week on expectations that it Offices and markets were closed amount of its unsecured loans to via Belarus along the Druzhba was headed for bankruptcy on Friday for the New Year holi- the airline, Japanese media also pipeline, one of the world’s under a state restructuring plan, day. Several cabinet ministers reported on Thursday. biggest by capacity and length. Its name means ‘friendship’ in Russian. Following are some key facts about the Druzhba pipeline: Druzhba is one of the largest Druzhba is one of the largest sections of Russian oil pipeline monopoly Transneft’s system. It starts in sections of Russian oil pipeline central Russia and connects West Siberian oil ﬁelds to major reﬁneries in Europe. monopoly Transneft’s system. It starts in central Russia and con- Germany received around crude via the Baltic Sea port of 135,000 bpd, also almost fully nects West Siberian oil fields to 350,000 bpd of crude via Gdansk. meeting its demand. major refineries in Europe. Druzhba, or just under 15 per- The southern leg of the Belarus gets around 400,000 It has capacity of over 2 mil- cent of its total consumption. Druzhba pipeline supplies bpd for its two refineries. lion barrels per day (bpd), of Refineries belonging to Total, Slovakia, Hungary and the In 2008, Ukraine reexported which some 1.2 million bpd Shell and BP are among the Czech Republic and has total some 160,000 bpd of crude from went directly to consumers in biggest buyers of crude from capacity of over 400,000 bpd, its Black Sea terminal of the European Union in 2008, Druzhba. but is often underutilized. The Odessa, which suspended reex- while some 400,000 bpd stayed Poland imports around Czech Republic imports around port operations earlier this year. in Belarus. 400,000 bpd of crude via 100,000 bpd via Druzhba, or half Another Ukrainian Black Sea The Druzhba pipeline splits Druzhba for domestic refining, its consumption; Slovakia buys outlet, Yuzhny, also reexported into two legs with the bigger or more than three-quarters of around 115,000 bpd from some 150,000 bpd, while the All Nippon is looking to increase its overseas ﬂights by targeting proﬁtable routes to Europe and the one, the northern leg, going to its consumption, and exported Druzhba, covering its entire Odessa refinery received some United States. Poland and Germany. In 2008, another 90,000 bpd of Druzhba needs, and Hungary imports 40,000 bpd in 2008. Technip poised to benefit from oil price rebound BLOOMBERG up 0.6 percent, in Paris on Technip has pinpointed the Thursday. Middle East as an area of focus. PARIS Technip SA, set to be the Technip, helping to build Arturo Grimaldi, senior vice best performer on France’s some of the world’s largest lique- president for the region, said on benchmark stock index this fied natural gas projects in October 19 that the United year, will probably benefit from Qatar for Exxon Mobil Corp. and Arab Emirates is likely to award an increase in oilfield-service Royal Dutch Shell Plc, took $21 billion of energy contracts tenders in 2010 as explorers charges totaling 320 million by mid-2010 as it prepares for a boost investment, analysts said. euros ($461 million) in 2007 recovery in global oil demand. “There’s going to be a pickup because of cost overruns and Technip is also seeking con- in exploration and production delays. Chief Executive Officer tracts in Iraq and joining with next year,” Guillaume Delaby, an Thierry Pilenko vowed to select partners to win orders from analyst at Societe Generale SA contracts more carefully to Saudi Aramco, he said. in Paris, said on Wednesday by improve profitability. “We see a healthy $11 billion telephone. Increased contract Technip’s order backlog was opportunity set for onshore wins, together with cost savings, 7.54 billion euros at the end of construction that we think will allow Technip to weather the third quarter, compared Technip will be bidding on in price cuts on equipment such as with 6.07 billion euros at the end the Middle East,” Tao Ly, an ana- The plant, located in Visaginas in eastern Lithuania, provided 70 flexible pipes, he said. of June and 7.72 billion euros a lyst at Credit Suisse Group AG, percent of the Baltic state’s electricity. The French oil-services year earlier. said in a November 26 report. provider, which joined the coun- try’s CAC 40 index on September 21, has seen its stock The Paris-based company, like other oilfield-service providers around the world, suf- Subsea pipe installation, an area where the company plans to expand, “should allow a rela- Soviet-era Lithuanian more than double this year. Renault SA, the index’s second- best performer, climbed 95 per- cent, while France Telecom SA fered from a drop in investment by explorers this year after oil prices sank more than $100 from their peak in July 2008. Technip’s order backlog was 7.54 billion euros at the end of the third quarter, compared with 6.07 billion euros at the end of June and 7.72 billion euros a year earlier. tive degree of defensiveness going into 2010.” Technip, Europe’s second- largest oilfield-services nuclear plant shuts and gas supplier GDF Suez SA, the biggest losers, slumped more than 12 percent. Technip builds offshore facilities for the petroleum industry, as well as plants for producing and cent decline in net income next year, compared with a forecast- from lower costs for equipment and services, the French provider, will probably end the year in second place on the 17- company Dow Jones Euro Stoxx down under EU deal The gain in Technip stock is processing fuels and chemicals. ed 417.3 million euros in 2009, Institute of Petroleum said last Oil & Gas Index, behind Dragon AFP as an economic “tiger” after join- linked to the rebound in oil The company said last month it according to a Bloomberg sur- month. Global investment was Oil Plc and ahead of Saipem ing the EU, with rising wages, prices, and to efforts to improve expects lower sales and narrow- vey of analysts. Sales are $406 billion this year, a 16 per- SpA, the region’s biggest oil- VILNIUS Lithuania on Thursday easy credit and money sent profitability even as orders er profit margins in 2010 as oil expected to fall 6 percent from cent drop from 2008, the organ- services company by market shut down its Soviet-era nuclear home by emigrants fuelling a shrank, Antoine de Montille, an producers wait for credit mar- a forecast 6.49 billion euros this ization said. value. Italy’s Saipem rose 104 plant under an EU deal in a move boom. But it was hit hard as the analyst at AlphaValue SAS, said kets to ease and oil prices to rise year. “Our customers have started percent in Milan trading this set to drive up electricity prices global crisis battered export mar- by telephone. “The company further before committing more “The 2010 earnings consen- showing real concerns about year. Schlumberger Ltd., based amid an economic crisis and kets elsewhere in the EU, plus had an abysmal track record funds to exploration. Crude sus on Technip is too low,” missing their production tar- in Houston and Paris, advanced leave it counting on ex-master Russia. and this has now changed,” said futures in New York, which have SocGen’s Delaby said. gets so it appears likely that 55 percent. Schlumberger CEO Moscow for power. Its economy has shrunk by de Montille, who recommends rebounded 79 percent this year, Spending on oil and gas project awards will pick up in Andrew Gould said on October “At 11:00 pm (2100 GMT) 15.2 percent this year, the govern- adding the shares and has a were still 42 percent below year- exploration and production the second half of next year, 23 that oil- services capital everything went offline. It all ment estimates, and the nuclear price estimate of 51.50 euros. earlier levels in the third quarter. may grow as much as 5 percent assuming stability in oil prices,” spending will rise “substantial- went according to plan,” Viktor shutdown could shave up to one The stock closed at 49.40 euros, Technip may report a 22 per- next year as companies benefit Pilenko said on November 13. ly” in 2010. Sevaldin, director of the 26-year- percentage point off gross old plant, told AFP by telephone. domestic product in 2010, The plant, located in Visaginas experts warn. in eastern Lithuania, provided 70 Violeta Klyviene, a Danske UK home values increase for eighth month percent of the Baltic state’s elec- tricity. It gradually went offline from 8:00 pm (1800 GMT) on Thursday, displaying its decreas- Bank analyst in Vilnius, told AFP individuals and businesses would “feel the aftershock” of the shutdown. She said the economy BLOOMBERG spurring demand for homes, measures to curb the UK’s budg- ing output on its website. could shrink by 4.5 percent in while the British Bankers’ et deficit may damp house-price It is similar to the one that 2010. LONDON UK house prices rose Association said last week mort- gains next year. exploded at Chernobyl in then- Lithuania’s SEB Bankas in con- for an eighth month in gage lending rose to the highest Bank of England policy maker Soviet Ukraine in 1986, the trast forecasts a modest recovery December as the lack of homes in two years in November. Bank Kate Barker said on December world’s worst nuclear accident. with 1.0-percent growth. for sale and signs the economy of England policy maker Kate 16 that she is ‘surprised’ by the Lithuania, which won inde- Sevaldin came from Russia to is emerging from the worst Barker said in an interview this pickup in UK house prices this pendence from the Soviet bloc in work at the plant on the eve of its recession on record pushed up month that economic growth year and predicted the recovery 1991, agreed to shut the plant by opening in 1983. “For years, prices, Nationwide Building probably resumed in the fourth may stall in 2010. Hometrack 2010 in order to win admission to nuclear power here was some- Society said. quarter. Lower-than-projected said this week that UK house the EU in May 2004. One of the thing normal and invisible. In the The average cost of a home job losses have also helped prices will decline next year as two reactors closed in December coming months, we’re going to increased 0.4 percent from the boost prices, according to rising unemployment and con- 2004. Vilnius later tried and failed realise what we’ve lost,” he said. previous month to 162,103 Nationwide. Data this month cern about the government’s fis- to convince Brussels to let it keep Lithuania has long had plans pounds ($260,086), the mortgage showed UK unemployment cal squeeze limit demand. the plant open until a replace- to plug the gap, however. lender said in a statement on Record-low interest rates and signs the recession is abating are unexpectedly declined for the “There is still a significant ment is ready — something not “I can offer assurances that Thursday. Prices rose 5.9 percent spurring demand for homes. first time since February 2008. amount of fog clouding the out- expected until 2018-2020. after the shutdown, Lithuania from a year earlier. Home values The Royal Institution of look for house prices,” Power prices in this country of won’t lack electricity,” said Prime are 12.2 percent lower than at house prices,” Martin Gahbauer, have helped to boost consumer Chartered Surveyors said this Gahbauer said. “This year’s 3.3 million people are to rise Minister Andrius Kubilius, who their peak in October 2007. Nationwide’s chief economist, confidence and tempt previous- month that its house-price recovery has to some extent Friday by 30 percent for house- was elected in October 2008 and “The restriction in supply said in the statement. “In addi- ly hesitant buyers back into the gauge rose to a three-year high been driven by transitory fac- holds and 20 percent for compa- opposed last-ditch attempts to meant that even a relatively tion, the stabilization of the market.” in November. tors, and there are reasons to nies, marking a new blow amid delay the shutdown. modest pick-up in demand was banking system and emerging Record-low interest rates and Rising unemployment and believe that it will lose momen- one of the world’s deepest eco- Lithuania has turned to able to put upward pressure on signs of economic recovery signs the recession is abating are the prospect of government tum over the coming year.” nomic crises. mothballed gas and oil-fired Lithuania earned a reputation power stations. Global Economy Saturday, January 2, 2010 27 India’s exports rise as global recovery boosts demand BLOOMBERG Overseas sales of Indian gems and jewelry jumped 54.8 percent NEW DELHI India’s exports rose to $21.4 billion in November for the first time in 14 months as compared with $13.8 billion in recovery in the global economy the same month a year ago, boosted year-end holiday according to the Gem & demand for the South Asian Jewellery Export Promotion nation’s products. Council. Vehicle exports rose 25 Overseas shipments percent in November from a increased 18.2 percent to $13.2 year earlier, the Society of Indian billion in November from a year Automobile Manufacturers said earlier after sliding an average on December 8. 21 percent per month since November’s increase in October 2008, according to data exports shouldn’t be seen as the provided by the trade ministry. beginning of a positive trend, as Imports fell 2.6 percent to $22.8 shipments rose mainly due to a billion. low base in the same month last Record-low interest rates and year, Bhanumurthy said. The more than $2 trillion in govern- difficulties for exporters and the ment stimulus worldwide are Indian economy are not yet over, reviving demand for clothes he said. made by Gokaldas Exports and “The surge in inflation will Hyundai Motor cars. South result in increasing input costs Korea’s exports rose 33.7 per- for exporters, forcing them to cent in December, the fastest raise prices and making it diffi- pace in 17 months, as Asian cult for them to remain compet- economies from China to itive in overseas markets,” Singapore recover from the Bhanumurthy said. worst global recession since the India’s benchmark wholesale- 1930s. price index climbed 4.78 percent “We are seeing a rebound in in November from a year earlier, overseas sales mainly due to more than tripling from a 1.34 improved conditions in the US percent gain in October, the gov- and Europe and festival demand ernment said on December 14. ahead of Christmas,” said NR A stronger rupee is also affect- Bhanumurthy, an economist at ing exporters’ earnings, accord- the National Institute of Public ing to the Federation of Indian Finance and Policy in New Export Organisations. Delhi. The Indian currency strength- A return to export growth ened 4.8 percent in 2009 to India’s benchmark wholesale price index climbed 4.78 percent in November from a year earlier, more than tripling from a 1.34 percent gain in October. may boost production at com- 46.5275 per dollar at the 5 pm panies in India and bolster the close in Mumbai on Thursday, funds raised their holdings of mean there is no need to go after a yearlong contraction and increase overseas sales by devel- dependence on the US and revival in Asia’s third-biggest according to data compiled by the nation’s stocks to a record as hoopla over these numbers,” France, Germany and Japan oping trade agreements with Europe, which account for economy, which expanded 7.9 Bloomberg. That was the third- the benchmark Sensitive Index Trade Secretary Rahul Khullar have exited recession. other countries. The South about 40 percent of the nation’s percent in the three months to best performance among Asian rallied the most in 18 years. said on December 15. The US economy, India’s sec- Asian nation in August signed a exports. India in August also September 30 from a year earli- currencies after Indonesia’s Indian stock market is closed Shipments dropped almost 20 ond-biggest export market, free-trade accord with South announced tax refunds for er, the quickest pace in six quar- rupiah and the South Korean today due to a holiday. percent in November 2008 from expanded 2.2 percent in the July- Korea and the 10-member exporters to explore new mar- ters. Some sectors have started won. “The low-base effect on a year earlier. The US returned September quarter. Association of Southeast Asian kets in Africa and Latin showing signs of improvement. The rupee gained as foreign November’s export growth to growth in the third quarter India is boosting its efforts to Nations as it attempts to reduce America. Manufacturing at 20-month high in China Bangladesh claims it is out of recession BLOOMBERG production costs for companies are increasing.” IANS BEIJING China’s manufacturing expanded at the fastest pace in 20 months in December, China and Asia are leading the world recovery, helping to boost global confidence, which DHAKA Bangladesh says it is ìalmost out of the impact of the B angladesh has been importing cementing the recovery in the held near a record high in global economic recessionî world’s third-biggest economy. December, according to a with every economic index electricity from India The Purchasing Managers’ Bloomberg survey of users of six looking positive. for which an Index climbed to a seasonally continents, first conducted two “In the outgoing year, our agreement is likely to adjusted 56.6, the Federation of years ago. China may overtake exports, imports of capital be signed later this Logistics and Purchasing said Japan as the world’s second- machineries were on the rise, month when PM today in an e-mailed statement biggest economy this year. foreign exchange reserves and Sheikh Hasina visits in Beijing. That compares with Profits are climbing as the remittance were also satisfac- New Delhi. 55.2 in November and the medi- economy gathers pace. Beijing tory. In fact, we are almost out an 55.4 estimate in a Bloomberg Automotive Industry Holding, of the impact of global eco- Sheikh Hasina visits New Delhi. News survey of seven econo- the company which is buying nomic recession,” Finance Muhith said Bangladesh mists. technology from General Minister AMA Muhith said. needs to expand the public The boost to Chinese manu- Motors’s Saab unit, said on Maintaining that each eco- expenditure and also mobilise facturing from subsidies for December 23 that 11-month net nomic index of the country is resources, New Age newspaper home- appliance purchases and income more than tripled. now positive, Muhith, however, said. tax rebates for exporters will China Gas Holdings’s profit in admitted that there were some He also spoke of the need for continue this year as the gov- the six months ended problems related to both good governance as a chal- ernment extends policies to September jumped nearly six- domestic and foreign invest- lenge if the country is to counter the financial crisis. The boost to Chinese manufacturing from subsidies for home- appliance purchases and tax rebates for fold. Premier Wen Jiabao said ment. emerge as an intermediate China’s growth will accelerate exporters will continue this year as the government extends policies to counter the ﬁnancial crisis. on December 27 that China “There is no reason to be economy. to 8.8 percent in 2010, four won’t make the mistake of end- complacent,” he was quoted as The Daily Star, in a look-back times faster than the US, as the said before Friday’s data. 2008, when recessions in the US, “Attention should be focused ing stimulus policies too soon, saying by the United News of at 2009, credited the economic world economy expands 2.4 “Exports may return to growth Europe and Japan sent export on the drop in the export- order even as he signaled that the gov- Bangladesh (UNB) news recovery to the performance of percent, the United Nations in December, aiding manufac- orders plunging. A reading index, which shows there ernment may cool new lending agency. the farmers, workers and the forecast last month. turing growth.” above 50 indicates an expan- shouldn’t be premature opti- that reached an unprecedented He specified power and ener- migrant workers abroad who “Manufacturing will stay at a Industrial production grew in sion. mism about an improvement in $1.3 trillion in the first 11 gy as the two sectors that need- send remittances back home. high level as industrial produc- November at the fastest pace A measure of new export international markets,” Zhang months of last year. Wen also ed to be expanded. ìKudos goes to farmers, work- tion quickens and companies since March 2008, exports orders fell to 52.6 in December Liqun, a researcher at the State said China will ‘absolutely not Bangladesh has been ers and migrant labourers this receive more orders for new- dropped the least in 13 months from 53.6 in November and a Council Development and yield’ to pressure from foreign importing electricity from year. Without them, year holiday sales,” Lu and imports surged. gauge of purchasing prices Research Centre, said in the countries for currency gains as India for which an agreement Bangladesh could face differ- Zhengwei, an economist at Friday’s figure compares with increased to 66.7 from 63.4, statement. “The rise in the pur- the nation holds the yuan at is likely to be signed later this ent music in the year that Industrial Bank in Shanghai, a record-low 38.8 in November according to the statement. chasing price index shows that about 6.83 per dollar. month when Prime Minister rolled by.” Singapore economy recovering after 2009 contraction BLOOMBERG remain and no one expects an ous three months, after climb- Bank’s Office for Regional exuberant boom.” ing 14.2 percent from July to Economic Integration said on SINGAPORE Singapore’s econo- Singapore joined other Asian September, according to the December 15. The US, Asia’s my is improving after a ‘volatile’ nations in emerging from a median estimate of eight econo- largest export market, needs to year that saw it shrink for the global economic slump last year mists surveyed by Bloomberg. prepare for a second stimulus first time since 2001, Prime after the region’s governments The trade ministry will release package as there’s a ‘significant’ Minister Lee Hsien Loong said. unveiled about $1 trillion in the economic data at 8 am on chance that growth will slow in Gross domestic product fell stimulus measures to spur January 4. the second half of 2010, Nobel 2.1 percent in 2009, Lee, 57, said growth. Still, a ‘sluggish recov- Lee’s estimates on Thursday Prize-winning economist in his New Year message on ery’ in overseas demand for suggest the Southeast Asian Joseph Stiglitz said on Thursday. That’s in line with the goods made by companies such economy may have shrunk as December 21. government estimate for a con- as Stats Chippac may moderate much as 5 percent in the fourth “The global economy will traction of 2 percent to 2.5 per- growth prospects in the coming quarter from the previous three experience ‘modest’ growth this cent. The trade ministry fore- months, the government said in months, said Song Seng-Wun, year even as the worst is behind casts the economy will expand 3 November. an economist at CIMB-GK us,” Lee said in a December 30 percent to 5 percent in 2010, an The economy grew 3.5 per- Securities in Singapore. commentary written for estimate reiterated by Lee. cent in the fourth quarter from “The likely contraction in the Bloomberg News. Still, Asia is “Our economy is growing a year earlier, Lee said. That fourth quarter after two strong expected to resume its ‘rapid’ again, and has recovered much compares with the 3.8 percent quarters highlights the vulnera- growth, he said on Thursday. of the ground since the reces- median forecast of nine econo- bility of the recovery,” Song said Singapore’s economy shrank Singapore’s economy grew 3.5 percent in the fourth quarter from a year earlier. sion began” in 2008, Lee said. mists surveyed by Bloomberg after Lee’s message on in the 12 months through “Worldwide, economies have News. Thursday. March as the worst global reces- sumer spending. ing last year in an effort to min- measures to help companies get stabilised. The US, Japan and GDP probably contracted an Asia’s rebound could falter as sion since World War II curbed The government cut corpo- imise job losses and help busi- financing, after deciding in Europe are starting to grow annualised 2.1 percent in the the effect of stimulus measures exports, prompted tourists to rate taxes and tapped its nesses and workers. It said this October to prolong a wage-sub- again, although problems fourth quarter from the previ- fade, the Asian Development stay away and damped con- reserves to fund record spend- week it will extend by a year sidy programme. 28 Saturday, January 2, 2010 Market Matrix European stocks post 3rd weekly straight advance in a decade BLOOMBERG Renault SA, France’s second- This past week, the measure biggest, each surged 95 per- capped its longest stretch of PARIS European stocks posted cent. French car sales weekly gains since August as their third straight weekly increased for a seventh consec- China raised its 2008 growth advance, with the Dow Jones utive month in November as estimate to 9.6 percent from 9 Stoxx 600 Index completing its government rebates for scrap- percent and said quarterly fig- biggest annual increase in a ping old vehicles when new ures for 2009 will also increase. decade as the global economy ones are purchased, combined An index of home prices in 20 recovered from its worst reces- with environmental bonus- US cities rose in October for a sion since World War II. and-penalty payments, spurred fifth consecutive month, put- Basic-resources companies demand for more fuel-efficient ting the housing market and and banks, the worst-perform- cars and slowed sales of luxury economy farther down the path ing industry groups in 2008, led vehicles. to recovery, according to a gains in the measure, surging Germany’s DAX rallied 24 report on December 29. A sepa- 100 percent and 46 percent in percent, with Infineon rate report on the same day 2009, respectively. Kazakhmys Technologies AG surging 352 from the New York- based Plc, Kazakhstan’s biggest cop- percent. Europe’s second- Conference Board showed con- per producer, soared 475 per- biggest semiconductor maker fidence among US consumers cent, as the price of the metal entered the benchmark gauge rose in December for a second more than doubled. Natixis SA, after returning to profit follow- month as pessimism over the the investment-banking unit of ing 10 consecutive quarters of outlook for jobs diminished. France’s second-largest lender losses. Companies in the US by branches, climbed 184 per- The Stoxx 600 posted its expanded in December at the cent. biggest annual retreat on fastest pace in almost four The Stoxx 600 rose 28 per- record in 2008, falling 46 per- years, according to The cent to close the year at 253.16, cent, as credit losses and write- Institute for Supply having posted a 0.5 percent downs at the world’s largest Management-Chicago Inc. on gain in the holiday-shortened financial firms surpassed $1 December 30. week as China raised its eco- trillion and the U.S., Europe Antofagasta Plc, the copper nomic growth forecast. The and Japan entered simultane- producer controlled by Chile’s measure rebounded 60 percent ous recessions. Basic-resources Luksic family, and Lonmin Plc, from the 2009 low in March shares and banks in the meas- the world’s third-largest plat- amid record-low interest rates ure each lost 64 percent as inum producer, led basic- in the US and Europe and as investors sold off shares linked resources shares higher as met- governments committed about to economic growth and those als rose. They gained 6 and 4.2 $12 trillion worldwide to revive most hurt by the credit crisis. percent, respectively, this past credit markets and stimulate The Stoxx 600 posted its biggest annual retreat on record in 2008, falling 46 percent, as credit losses and writedowns at the world’s Kazakhmys jumped 475 per- week. growth. The S&P 500 gained 23 largest ﬁnancial ﬁrms surpassed $1 trillion and the U.S., Europe and Japan entered simultaneous recessions. cent in 2009, while Boliden AB, Q-Cells SE surged 14 percent, percent in 2009. Europe’s second-biggest zinc the best performer in the Stoxx “There was the conviction trimming its drop over the past ing the euro, sank 45 percent in field-services companies among 23 developed markets producer, soared 428 percent 600 this past week, after Han- that governments weren’t decade to 33 percent. Its best 2009 for the first annual drop including Seadrill Ltd. and that have recouped all of their as the best-performing mining delsblatt newspaper cited the going to abandon the econo- month last year was April, with since 2004. Petroleum Geo-Services ASA, post-Lehman losses. shares in the Stoxx 600. German solar-cell maker’s chief my,” said Emmanuel Soupre, the gauge soaring 13 percent as National benchmark indexes which both more than dou- “We erased the Lehman peri- Copper more than doubled executive officer as saying the who helps manage about $15.6 US banks including Citigroup rose in all of the 18 western bled. od and returned to the level in 2009 with the help of record company expects to be prof- billion at Neuflize OBC in Paris. Inc. and Goldman Sachs Group European markets except The U.K.’s FTSE 100 climbed prior to the collapse,” said first-half imports into China, itable in 2010. “What lifted the market was Inc. reported earnings that Iceland in 2009. The north 22 percent, and on Dec. 29 Guillaume Duchesne, the world’s largest consumer. Basilea Pharmaceutica Ltd. the idea that we no longer exceeded analysts’ estimates. Atlantic island is the western became the first equity market Luxembourg- based equity Prices are up almost fourfold tumbled 17 percent, the biggest spoke of a depression, but only The measure climbed 5.9 per- nation hardest hit by the global among the biggest developed strategist at Fortis Private from the end of 1999 in London. weekly retreat since February. a recession. When we saw cent in December. The S&P fell credit crisis, and needed to economies to recover its loss Banking, which oversees about Natixis surged 184 percent for The US Food and Drug depressive forces countered by 24 percent in the last decade. turn to the International following Lehman Brothers $117 billion. “Investors played the best performance among Administration rejected its government and central bank The VStoxx Index, which Monetary Fund for a $2.1 bil- Holdings Inc.’s bankruptcy in the stabilisation of the econo- bank stocks. The French lender experimental ceftobiprole support, that helped the mar- gauges the cost of using lion loan to avert a default. September 2008. The UK my.” France’s CAC 40 advanced this month said it will be prof- antibiotic because clinical trial ket to take off.” options to protect against Norway’s OBX was the best joined Hong Kong, Norway, 22 percent in 2009, as PSA itable in the fourth quarter. data were “unreliable.” The FDA The Stoxx 600 reached a 15- declines in the Euro Stoxx 50, a performer, gaining 70 percent Portugal, Singapore, Spain and Peugeot Citroen, Europe’s sec- All 19 industry groups in the requested two new studies on month high on December 29, measure for the countries shar- as higher oil prices lifted oil- Sweden as the only nations ond-largest carmaker, and Stoxx 600 rose in 2009. the drug, Basilea said. China likely to grow Commodity markets rally in 2009 on recovery signs 9.5% in 2010 AFP certainly benefited raw materi- als linked to the expanding prices plunging to around 33 dollars towards the end of 2008. nation. Prices were also supported London’s Brent North Sea crude for February fell 10 cents On the London Platinum and Palladium Market, platinum AFP LONDON Commodity prices ral- infrastructure and industrial “So much then for 2009, a this week by cold winter weath- to settle at 77.93 dollars. increased to 1,466 dollars an lied in 2009 on keen demand growth. year that the oil market spent er in the northern hemisphere Gold prices sparkled this ounce on Thursday from 1,456 BEIJING China is expected to and signs of global economic “Demand ( from leading mainly in a recovery mode,” said — which increases demand for year, scoring a record peak of dollars. grow by about 9.5 percent in recovery, with oil soaring and industrialised economies) has Barclays Capital analyst Paul heating fuel — and geopolitical 1,226.56 dollars per ounce at the Palladium rose to 402 dollars 2010, state media quoted a gov- gold striking record levels, while yet to show significant and sus- Horsnell. concerns over key crude pro- start of December, before tailing an ounce from 377 dollars. ernment think tank as saying on copper and sugar surged. tained signs of an economy “It produced a (New York oil) ducer Iran. off as many traders cashed in Copper soared this week, Friday, exceeding forecasts made Many raw materials also rose recovery. However, end-of-year average of about 62 dollars per Last week, the Organisation gains. striking a new multi-month peak, by outside experts for the new this week in thin trade ahead of data, especially from the United barrel, encompassing a low of of Petroleum Exporting The glamourous metal has taking its annual gain to more year. the New Year holiday weekend, States, was fairly encouraging.” 33 dollars and a high of 82 dol- Countries held its crude output smashed records on the back of than 140 percent as traders fret- The world’s third-largest econ- with investors winding down Back in 2008, crude oil and lars, with prices finishing the quotas unchanged at its meet- inflationary fears and increas- ted over possible strikes in key omy will be boosted by double- for celebrations to usher in base metals had forged historic year close to the highs after a ing in Angola, warning of linger- ing moves by central banks to producer Chile. digit growth in real estate invest- 2010. peaks on supply woes, before steady 10-month climb.” ing weakness in the world econ- diversify assets away from the Most other base metals also ment and mild inflation, the “2009 has been a rollercoaster tumbling as the global financial However, prices still remain omy. The OPEC meeting capped dollar, which weakened against leapt higher on better-than- State Council’s Development ride for most commodity mar- crisis and recession sparked far below the record highs a year of recovery for oil prices, the European single currency. expected US data and thin mar- Research Centre said in a report kets, with copper, sugar and demand worries. above 147 dollars that were which have more than doubled The weak level of the green- ket conditions. published in the China Economic New York crude performing Crude oil leapt this year by struck in July 2008 on fears of since the cartel set strict quota back made dollar-priced com- Copper hit 7,423.75 dollars per Times. especially well,” said VTB around 80 percent as traders supply disruptions. cuts in the depths of the eco- modities cheaper for buyers tonne on Thursday, reaching the “In 2010, the external environ- Capital commodities analyst were heartened by evidence New York crude rose on nomic crisis a year ago. using stronger currencies — which highest level since September ment will remain rather grim Andrey Kryuchenkov. that the battered global econo- Thursday to briefly hit 80 dol- In January, the cartel tends to stimulate demand. 2008. “A much higher-than- but it will not deteriorate fur- “Refined copper and raw my was on the mend, with the lars per barrel in light pre-holi- enforced total OPEC cuts of 4.2 However, by Thursday on the expected Chicago PMI figure out ther,” Zhang Liqun, a macro- sugar were certainly the out- eurozone, Japan and the United day trade. The market had million barrels a day. London Bullion Market, gold stood of the United States, continued economist at the centre, said in standing gainers as both more States escaping a fierce reces- climbed on Wednesday after New York’s main futures con- at 1,104 dollars an ounce, down uncertainty about strike threats the report. than doubled from lows at the sion. news of a drop in US petroleum tract, light sweet crude for deliv- from 1,104.50 dollars the previous in Chile, and generally thin mar- Zhang added that exports — a start of the year.” The worldwide economic reserves, which suggested ery in February, crept eight on Thursday. ket conditions, all contributed to key driver of economic growth He added: “China’s unprece- downturn had slammed stronger demand in the world’s cents higher to close at 79.36 Silver edged down to 16.99 dol- the stronger tone,” said MF — would start to grow again in dented financial stimulus had demand for energy and sent oil biggest energy-consuming dollars a barrel. lars an ounce from 17.32 dollars. Global analyst Edward Meir. the coming year. The think tank’s 2010 eco- nomic growth forecast is well above Beijing’s oft-stated target of eight percent — seen as cru- BSE snaps 3-day losing streak, Sensex up 91 pts Goldman Sachs helps cial for job creation and ensuring social stability — and is higher than estimates for 2009. PTI YRC avert bankruptcy handful of stocks like metal heavy weight Tata Steel and For 2010, the Asian MUMBAI The Bombay Stock Hindalco, realty leader DLF and Development Bank has put its Exchange benchmark index telco Bharti Airtel, which all BLOOMBERG has posted $1.7 billion in losses economic growth forecast for Sensex on Friday recovered gained close to 4 percent each. in the past five quarters, needed China at 8.9 percent, while the from its six-week lows, gaining Similarly, the wide-based NEW YORK Goldman Sachs to complete the exchange by International Monetary Fund 91 points on firm global cues National Stock Exchange index Group Inc. helped YRC December 31 to avoid a bank predicted growth of nine per- and on emergence of brisk buy- Nifty 50 also rose by 33.25 Worldwide Inc. complete a debt payment that would have left cent. China’s economy grew by ing by funds in key sectors like points to close at 4,985.85 after swap to avert bankruptcy after the trucker in an “unsustain- 8.9 percent in the third quarter metals and PSUs among others. touching an intra-day high of the Teamsters union said the able” position, the Overland of 2009 — the fastest pace in a The 30-share bellwether 4,997.30. bank was trying to profit from a Park, Kansas-based company year — after expanding by 7.9 Sensex initially touched a high However, marketmen are not failure of the largest US trucker said in a regulatory filing two percent in the second quarter of 16,738.12 but pared some of very enthused about this and by sales. weeks ago. and 6.1 percent in the first, the those gains to end at 16,692 are cautious saying this A group consisting of International Brotherhood of slowest pace in more than a points, posting a net rise of renewed interest is temporary Goldman Sachs, Deutsche Bank Teamsters President James decade. 90.80 points or 0.55 per cent and driven by the massive fall in AG, Aristeia Capital LLC, Hoffa said in letters last month Zhang said real estate invest- from its previous close of the previous days, especially on Silverback Asset Management to regulators and lawmakers ment was expected to grow by 16,601.20. The Sensex had shed the metals counters. and a Smith Management LLC that Goldman Sachs and 30 to 40 percent in 2010 and 312 points or 1.84 per cent in Ashika Stock Brokers unit, “got us over the goal line by Deutsche Bank were among become the “main source driv- last three sessions alone. research head Paras Bothra going into the market, buying banks that “have a history of ing investment growth”. The market snapped its said, “Today’s rally was purely a bonds and tendering them,” making markets in these types China last month vowed to three-day losing streak on reflection of the global markets YRC Chief Executive Officer Bill of derivative financial products.” tighten supervision of the real renewed demand in key sectors which were holding up. Zollars said on Thursday. Goldman Sachs spokesman estate market to curb “overly like metals, PSUs led by banks, “Yesterday the metal stocks YRC extended the deadline Michael DuVally said on fast” price rises that have raised realty, and telecom counters on were hammered down quite a for the bond exchange six times December 17 that the bank was fears of a property market bub- the back of news of higher lot. This brought in a kind of in December as it sought to “actively exploring ways to help” ble. The country’s consumer advance tax payments by lead- rebound in the sector today. overcome resistance from YRC. Bondholders with 70 per- price index, a key measure of ing corporates,helping the mar- The rally is basically a one- bondholders owning deriva- cent of YRC’s $150 million of 8.5 inflation, is estimated to remain kets to rebound. day kind of an activity, devoid of The market snapped its three-day losing streak on renewed tives that would pay out if the percent notes due in April below three percent, Zhang said. The rally was still limited to a any fundamental reason.” demand in key sectors. company defaulted. YRC, which offered to tender. Bottom Line Saturday, January 2, 2010 29 Fox grants brief extension to cable contract AP Fox has said it needs sub- scription revenue to supple- LOS ANGELES Fox and Time ment the advertising revenues Warner Cable extended their that have supported its broad- contract for a few hours, avoid- cast network up until now. ing a threatened blackout of Separately, Sinclair several stations from the cable Broadcasting Group, which provider while the two sides owns broadcast stations in mar- tried early Friday to resolve a kets as large as Des Moines and disagreement over fees. Cedar Rapids, Iowa, agreed to Time Warner Cable Inc. made an eight-day extension for cable the announcement as the clock TV operator Mediacom rolled past midnight on Communications Corp. to carry Thursday on the East Coast. In a Sinclair’s Fox and CBS stations. Allianz foresees a massive recovery for Germany’s economy this year. brief statement at 5:30 a.m. EST on Friday, Scott Grogin, Fox sen- ior vice president for communi- cations, said “we are still negoti- S ix Fox cable chan- nels, including FX, Allianz predicts good ating.” The extension for a few hours made it appear likely that at the very least a further extension Speed and Fuel, and certain regional sports networks were still year for Germany in ’10 would be granted, allowing mil- being distributed AFP lions of cable subscribers access to Friday’s Sugar Bowl between the Florida Gators and the throughout the Time Warner Cable and Bright House BERLIN Germany’s insurance giant Allianz foresees a massive Thegroup’sBild quoted the daily chief Cincinnati Bearcats. The Cotton recovery for the country’s econo- Bowl on Saturday, the NFL’s final service territories. my this year, with growth exceed- economist Michael regular season contests on ing official forecasts and unem- Heise as saying that Sunday and “The Simpsons” and Fox has said it needs subscription revenue to supplement the advertising revenues that have support- Mediacom will pay Sinclair a ployment rising only marginally, a growth would reach 2.8 other Fox shows were also at risk. ed its broadcast network up until now. higher rate than it was paying report said on Friday. %, above the German Karen Amaya, a 30-year-old under a contract that also was The daily Bild quoted the central bank’s predic- schoolteacher and Time Warner owns, a move that would have Six Fox cable channels, includ- a smaller cable TV operator, expiring at midnight Thursday. group’s chief economist Michael Cable subscriber in Van Nuys, affected more than 6 million cus- ing FX, Speed and Fuel, and cer- Bright House Networks, have In another fee dispute, Heise as saying that growth would tion of 1.6%. Calif., said she was concerned tomers of Time Warner Cable tain regional sports networks resisted paying a new $1 Cablevision Systems Corp. said reach 2.8 percent, comfortably about not being able to see “The and Bright House Networks in were still being distributed monthly fee per subscriber that early on Friday that it had failed above the German central bank’s mass lay-offs in industry, and Simpsons” on Sunday night, New York, Los Angeles, Orlando, throughout the Time Warner News Corp. is demanding from to reach a deal to continue car- prediction of 1.6 percent and the unemployment would stay well which her husband watches Fla., and other markets. Cable and Bright House service both operators. Time Warner rying HGTV and Food Network strongest since 2006. Heise said below the symbolic four million “religiously.” If the signal were dropped on territories. Carriage arrange- Cable CEO Glenn Britt has for its 3.1 million subscribers in the good performance would be level. She said it was “kind of frus- cable, people could tune into Fox ments on those channels weren’t called the fee demand excessive the New York, New Jersey and spurred by a boom in exports, sta- While many analysts have said trating” not knowing what would with an antenna if they have a to expire until Thursday at mid- and said the cable operator has Connecticut, adding it had no ble domestic consumption, gov- this mark would be topped, with happen, especially as both sides digital TV or converter box. But night PST (3 a.m. EST). reached deals for “much lower” expectation of carrying the sig- ernment recovery programmes the Bundesbank predicting 4.2 had heavily advertised the possi- most Americans these days get The dispute focuses on how rates with Fox affiliates — sta- nals again. and tax cuts recently agreed by million jobless by 2011, Heise ble disruption. broadcast channels through sub- much Fox is paid by cable com- tions that carry Fox program- The channels are owned by the ruling centre-right coalition. said they would not exceed 3.67 Fox had threatened to pull the scription services such as cable panies to retransmit its stations’ ming but are owned by other Cincinnati-based Scripps He also forecast that 2010 million, some 240,000 more than signal from 14 TV stations it TV or satellite. signals. Time Warner Cable and companies. Networks Interactive Inc. would not see the widely feared at present. GM, SAIC partnership to grab Washington Times cuts jobs; sports out bigger Indian auto market pie AP The layoffs hit some high- The Times did not break profile beats, including journal- down the cuts, but laid-off WASHINGTON The Washington ists covering the Justice staffers described what they Times slashed its staff by more Department, Congress and for- learned from colleagues. AFP to be able to spread its business its Chevrolet marque in India than 40 percent and will elimi- eign affairs. The newspaper Several departments at the outside of China. There is also a only in 2003, is the fifth-largest nate its sports section and most announced several manage- newspaper are being all but NEW DELHI For GM India chief big benefit for us to partner with carmaker in the country. It sold local coverage in 2010, shifting ment changes, though it’s not eliminated, said photographer Karl Slym, the expansion of the them,” Slym said. In China, 67,500 vehicles last year, up 9.5 its focus to politics, business clear who will oversee the news- Allison Shelley. All nine staff US auto giant’s 12-year alliance where General Motors entered percent from the previous year. and investigative reporting. room operation. Christopher photographers were cut, along with its Chinese partner SAIC in 1996, the Detroit-based com- Analysts see the 50:50 tie-up in The 27-year-old newspaper Dolan was appointed with the assistant managing Motor to tap India’s burgeoning pany is the second largest which SAIC is investing cash announced the latest round of Wednesday as national politics editor of photography, she said. vehicle market is win-win for automaker, helped by its part- and GM is supplying its Indian layoffs in its Thursday edition editor and Brett Decker as edi- Only two photo editors will both sides. nership with China’s biggest car- plants and sales network as giv- and said the last sports section torial page editor. Jeffrey remain. The two companies maker, Shanghai Automotive ing GM more resources to grab a would appear Friday. Among Birnbaum, the managing editor The graphics and Web announced in December a joint Industry Corp, or SAIC. bigger share of the Indian mar- those let go was the newsroom for digital operations, resigned department staffs were cut venture with an initial focus on GM, which is undergoing a ket. leader, Managing Editor David that post but will continue as a nearly in half, and nearly all selling mini-commercial vehi- drastic restructuring after being It also gives the Chinese car- Jones. Another round of cuts columnist. metro reporters were laid off, cles and inexpensive, entry-level bailed out by the US govern- maker its first foothold in India, was made earlier in December, The paper will publish a new During his last day at the Shelley said. Only six copy desk cars in India that will later ment, is expected to post sales in furthering its aspirations of and the newspaper published weekday print edition starting office, Jones said Thursday that editors would remain, she said. embrace other Asian emerging China of 1.4 million vehicles this being an international player. its last Sunday edition last on Monday. his staff had been working While newsroom cuts had markets. “Our first business year. But in India, Asia’s third- India, with its nearly 1.2 billion weekend. under a cloud of uncertainty for been expected for weeks, the move will be in India but it won’t largest car market after China population, is one of the world’s The paper will publish a new “Our market-based, forward- about two months. photography layoffs came as a be the last — we will be spread- and Japan, where Japanese- last remaining big-growth mar- weekday print edition starting looking plan is both a response “In spite of that, they’ve been surprise. ing to other areas in Asia. We’ve owned Maruti Suzuki holds a kets for global automakers like on Monday. It will focus on the to the recessionary economy, very professional,” he said. “I don’t think anyone expect- made a commitment to expand commanding leadership posi- GM, Ford, Toyota, Hyundai and newspaper’s core strengths, continued downward financial “They’ve come in every day and ed the entire staff of shooters in emerging markets,” Slym told tion, GM has been slower out of Honda as they grapple with a including politics and cultural pressures on the news industry broken big stories. They’ve put would be laid off,” said photog- AFP in an interview. the starting blocks. The US auto wrenching slump in developed issues, President and Publisher and our transition into a 21st out a product that I’m really rapher Katie Falkenberg, who “There is a big benefit to SAIC company, which started selling markets. Jonathan Slevin said on century multimedia enterprise,” proud of, and I’m proud of worked at the Times for three Wednesday in a statement. Slevin said. them.” years. Toyota’s hybrid Prius faces US probe into brakes malfunction AFP what a spokesman called “the Just 12 months ago the behavior people are reporting.” automaker was basking in DETROIT Toyota is facing a “We’re investigating those headlines reporting that it had potential safety issue with its complaints as quickly as possi- finally beaten arch-rival General highest profile vehicle, the ble,” spokesman Mike Michels Motors to become the world’s Prius, the latest in a plague of added. Exactly what is happen- best-selling automaker. quality problems that forced it ing is unclear. Like the vehicle’s But by March, things didn’t to recall four million vehicles in gasoline-electric powertrain, look so good. Battered by the 2009. the brakes are also a hybrid recession in the US, its key mar- A growing number of owners technology. ket, the maker reported its first allege that the brakes on the During light to moderate annual loss in a half century. third-generation, 2010 Toyota braking, the car is slowed by a In August, a California Prius can malfunction unex- regenerative system that turns Highway Patrol officer and pectedly, with at least 20 com- the vehicle’s kinetic energy into three members of his family plaints filed so far with the electricity, which is then stored were killed in a fiery crash when National Highway Traffic Safety in a battery. For more aggressive their Lexus went out of control. Administration. stops, the Prius also has a con- Two months later, Toyota The Japanese automaker said ventional hydraulic brake sys- announced it would recall 3.8 it has launched its own investi- tem. million vehicles, blaming the gation. Some speculation focuses on problem on floor mats that Robert Becker, 39, is one of the regenerative system, and could come loose and jam the those filing among at least 20 whether a sharp jolt to the vehi- accelerator pedal. who have already submitted cle could inadvertently trick Another recall impacted their concerns to the National vehicle sensors and controls 110,000 Tundra pickups which, Highway Traffic Safety into releasing the brakes. according to NHTSA, are prone Administration’s Office of But Michels cautioned to “excessive corrosion” so Defects Investigation. Toyota will have to look at a severe their brakes could fail. He says he was heading to variety of things. “Rather than In all, Toyota will have work on the west side of The Prius brake problem has become a hot topic on numerous websites, but federal investigators are so far declining to comment, throwing out theories, the recalled around four million Manhattan, coming up to an although the ﬁle is open to the public. important thing is to do a scien- cars, trucks and crossovers, in intersection and squeezing the tific analysis. When we have an the United States, during 2009. brakes of his 2010 Prius to slow to slam down on the pedal. Becker is not alone, as bump, but when this same become a hot topic on numer- answer, we will provide it to That’s about four times more down. “It scared the hell out of me. I NHTSA’s defects office reveals. thing happened three days ago ous websites, but federal inves- owners as soon as possible,” he than in previous years. But when the car hit a pot- wasn’t sure I could stop in time,” One complaint on file quotes on slippery, icy roads, I knew for tigators are so far declining to said. And it means Toyota will have hole, Becker suddenly had the he said, adding the problem has an owner: “Initially, I convinced 100 percent certain I had not let comment, although the file is The Prius problem is one of recalled more vehicles than any “sensation of losing control,” as repeated itself a number of myself I must have been letting up on the brake.” open to the public. the last things Toyota needs other auto manufacturer for the the brakes released, forcing him times since then. up on the brake when I hit the The Prius brake problem has Toyota admits it is aware of right now. first time ever.