Docstoc

38

Document Sample
38 Powered By Docstoc
					                                                                                                                                                                                                                                  ARAB TIMES, SUNDAY, APRIL 10, 2011
   BUSINESS                                                                                                                                                                                                                                                                       38


                                                 Toyota reduces N. America production                                                                                         India’s new Tata chief may be in job 40 years

   Toyota announced Friday that it will        American engine and component             tive vice president of Toyota’s North                India’s sprawling Tata group says           new chairman to lead the auto-to-             “takes stock options and departs to
   suspend production in its North             plants will follow the same schedule.     America division. “Extraordinary                     the successor to its chief Ratan            tea conglomerate for three to four            the Bahamas,” he said.
   American plants for several days this       Future production plans will be deter-    efforts are underway to help suppliers               Tata, one of the nation’s most pow-         decades, holding company Tata                    In the 140 years of the group’s
   month because of problems supplying         mined at a later date,” the company       recover. “We are slowing down to                     erful businessmen, could be at the          Sons director R. Gopalakrishnan               history, Tata is only the fifth chair-
   parts from earthquake-rattled Japan.        said in a statement.                      conserve parts yet maintain produc-                  helm for up to 40 years, according          told reporters in Mumbai, according           man, Gopalakrishnan noted.
     The Japanese automobile manu-                Toyota had warned that the slow-       tion as much as possible,” he contin-                to a report Saturday.                       to the Indian Express. “The next                 The group had said the appoint-
   facturer said production will be sus-       down was “inevitable” after damaged       ued in the statement.                                   India’s Tata Group announced             leadership is not for five years, but         ment was expected to be made by
   pended April 15, 18, 21, 22, and 25.        caused by the March 11 earthquake            Toyota will continue to provide                   last August it would seek a succes-         he (Tata’s successor) will be there           March but after that deadline
   An exception is the plant in                and tsunami.                              employment for its 25,000 North                      sor to replace 73-year-old Tata as          for 30 to 40 years,” Gopalakrishnan           passed, a member of the Tata Sons’
   Georgetown, Kentucky, which will still         “The situation in Japan affects        American workers during the non-                     head of the country’s oldest and            was quoted as saying on Friday.               board, R.K. Krishna Kumar, said the
   build vehicles on April 21.                 many automakers and many other            production days, the statement said.                 most famous conglomerate.                      The group does not want a per-             group would likely name a succes-
     “Most of the company’s North              industries,” Steve St Angelo, execu-      (AFP)                                                   The $75-billion group wants the          son who comes in for just five years          sor by the end of May. (AFP)



                                                                                                 Govt not to keep plants open for longer

German nuclear companies halt environmental payments
BERLIN, April 9, (AFP): Four                     According to Der Spiegel, energy                                                                                                                                                        Vattenfall Europe, subsidiary of
energy companies that run German              firm EnBW has also stopped pay-                                                                                                                                                            the Swedish group by the same
nuclear plants said Saturday they
have stopped payments to an envi-
                                              ment.
                                                 The government reversed its
                                                                                          Vermont to fight effort to keep N-plant open                                                                                                   name.
                                                                                                                                                                                                                                            The government communica-
ronment fund after the government             decision after the Japan nuclear            BRATTLEBORO, Vermont, April 9,                  owner Entergy Nuclear ignores the              “We are prepared for any eventuality.”          tions service said it took note of the
went back on its decision to extend           accident last month, imposing a             (AP): Vermont is preparing for a legal          state’s refusal to authorize it to operate       When Entergy bought the plant in              companies’ decision and did not
the plants’ life.                             three-month moratorium on the               battle if the owner of the Vermont              after 2012 when its current license            2002, it agreed to abide by the Vermont         exclude a renegotiation of its agree-
                                                                                          Yankee nuclear power plant tries to             expires, even though the Nuclear               Public Service Board’s decision on
  EON, RWE and Vattenfall told                prolongation plans, and closing the         keep it running after its license expires,      Regulatory Commissioner has extend-            whether it would issue a certificate of         ment with them.
AFP they stopped their payments,              seven oldest nuclear plants.                state Attorney General William Sorrell          ed the plant’s license for 20 years.           public good to extend its operation                “The government is currently
starting this month, to the fund cre-            “We have decided to stop pay-            said.                                              “We are not going to sit on our hands       beyond 2012. And in 2006 the                    examining the financial conse-
                                                                                            Sorrell said he and his staff are             and let Vermont law be ignored,” Sorrell       Legislature gave itself the power to for-
ated in January as compensation               ing,” at least for the duration of          preparing their legal strategy if plant         told the Brattleboro Reformer newspaper.       bid the PSB from issuing the certificate.       quences of the moratorium,” a
for the government’s decision last            the government moratorium,                                                                                                                                                                 spokeswoman said, adding that
year to prolong the life of 17                EON spokesman Josef Nelles told                                                                                                                                                            once clarity has been obtained, it
nuclear plants by more than a                 AFP.                                        were supposed to contribute 300                 fund for this year, he said.                   start with the April contribution,”             “may lead to a modification of the
decade, until the mid-2030s.                     The four companies together              million euros ($430 million) to the               “We will stop paying; this will              added a spokeswoman for                         accord with the energy groups.”



       Portugal appeals for interim debt deal
                                                                                          Japanese ‘lobby group’ urges
   EU finmins defend
   austerity measures
   GODOLLO, Hungary, April 9,                 sands more job losses across the con-
                                                                                          tax breaks for quake-hit zone
   (Agencies): European finance minis-        tinent.
   ters meeting Saturday defended the            Holding boards reading “No aus-                                                             Stalled chip sector to cost $470 bln
   painful austerity measures being           terity”, marchers from 22 countries
   imposed in the region as necessary to      demanded more “social Europe, fair
   defeat a crippling debt crisis. But tens   pay and jobs” and bashed bankers            TOKYO, April 9, (AFP): Japan should set up a special eco-                                      industries such as the manufacture of automobile parts were to maintain their global dom-
                                                                                          nomic zone in areas worst hit by the March 11 disaster, a lead-                                inance.
   of thousands of people protested           along with European leaders.
   nearby to condemn what they called            Particularly under attack were                                                                                                             He cited the huge damage done to the economy of Kobe, a Japanese port city, after a
                                              German Chancellor Angela Merkel
                                                                                          ing business group said, as new research indicated more than                                   major earthquake in 1995.
   unfair and risky sacrifices imposed
   on workers instead of the bankers          and French President Nicholas               80,000 jobs would be lost over the next six years.                                                Local authorities asked for Kobe to be designated a special economic zone after the dis-
   who caused the problems.                   Sarkozy, who were shown whipping              Parts of the northeast were left devastated by the 9.0-magnitude earthquake, the             aster, but were turned down and the city’s slow recovery allowed Busan in South Korea to
      About 50,000 people took part in        workers on the ground.                      worst ever recorded in Japan, and tsunami, while fears over radiation leaks from               overtake it as a trading port.
   the peaceful demonstration in                 The trade unions harshly criticised      a nuclear plant have damaged the farming and fishing industries.                                  Japan’s biggest companies are still trying to gauge the full impact of the March 11 dis-
   Budepest, which was called by many         the European Union’s push for more             The chairman of Nippon Keidanren, an influential lobby group, said Japan should             asters, which have left nearly 28,000 dead or missing.
   European unions about 30 kilometers        harmonised economic policies, fear-         exempt residents from income and property taxes for three years to encourage recon-               The damage crippled supply chains and led to power outages that have forced the likes
   (20 miles) from where the EU minis-        ing wages would be sacrificed for the       struction and help the local economy get back on its feet.                                     of Toyota, Honda and Sony to shut plants.
   ters met. Many of the protesters com-      sake of competitiveness.                      Hiromasa Yonekura told Kyodo news agency rapid reconstruction was crucial if key                Output overseas has also been compromised, with a shortage of key components send-
   plained about what they called unfair         The demonstration was called to
   restrictions on their salaries and pen-    Budapest by the ETUC to coincide                                                                                                                                                            ing shockwaves through global markets.
   sions.                                     with an informal meeting of the EU’s                                                                                                                                                           On Friday, a leading research institute
      In Godollo, the town where the          finance ministers, held about 30 kilo-                                                                                                                                                      forecast that the disaster would eliminate
   ministers met, Spanish Finance             metres (20 miles) from the capital.                                                                                                                                                         81,500 jobs in the three hardest-hit prefec-
   Minister Elena Salgado said budget            “The ministers are locked into this                                                                                                                                                      tures over the next six years.
   cuts “are necessary because we need        orthodoxy that there got to be suffer-                                                                                                                                                         Employment at businesses in the coastal
   to grow and grow better and reduce         ing before everybody can have some                                                                                                                                                          areas of Miyagi, Iwate and Fukushima pre-
   our deficit to be able to continue pay-    growth. I think this is completely                                                                                                                                                          fectures will fall to 691,800 workers from
   ing for the state of well-being.”          wrong,” Monks told AFP before the                                                                                                                                                           the pre-disaster figure of 773,300, accord-
      In recent months, Spain’s Socialist     march.                                                                                                                                                                                      ing to the Nomura Research Institute.
   government has launched new auster-           Portugal’s president pleaded for                                                                                                                                                            The study found jobs in the manufactur-
   ity measures to get a grip on the          mercy from the EU and IMF                                                                                                                                                                   ing, wholesale and retail industries would
   country’s large budget deficit. He         Saturday after they set tough condi-                                                                                                                                                        be worst affected, but it did not take into
   said even though unemployment              tions for an 80-billion-euro ($115 bil-                                                                                                                                                     account the impact on the fishing and farm-
   remains at around 20 percent — the         lion) bailout weeks ahead of snap                                                                                                                                                           ing sectors, meaning the final figure could
   highest in the EU — the cuts appear        general elections.                                                                                                                                                                          be much higher.
   to have succeeded — at least for the          Anibal Cavaco Silva said that with                                                                                                                                                          Prime Minister Naoto Kan is to set up a
   moment — in re-establishing some           new elections due on June 5 “what                                                                                                                                                           special task force for reconstruction fol-
   market confidence in the Spanish           we need now is an interim pro-                                                                                                                                                              lowing the disaster, the cost of which is
   economy.                                   gramme so that the next government                                                                                                                                                          estimated at 16-25 trillion yen ($190-$300
      “While we understand their posi-        can take part in the final negotiations,                                                                                                                                                    billion) over the next three fiscal years.
   tion perfectly, we would like them to      because it is the next government that                                                                                                                                                         Many see Japan sliding into recession as
   understand ours too,” Salgado said of      will implement” the deal that                                                                                                                                                               a result of the impact of the disasters. The
   the protesters.                            emerges.                                                                                                                                                                                    central bank’s Tankan survey on Monday
                                                 “It’s understandable (and) we                                                                                                                                                            showed Japanese business confidence in
                 Pensions                                                                                                                                                                                                                 the outlook for the next three months had
                                              need, let’s say, a little imagination on
      Salgado’s counterparts also tried to    the part of European institutions to                                                                                                                                                        plunged.
   convince voters concerned over their
   pensions and job security that new
                                              come up with a suitable interim pro-                                                                                                                                                                      Also:
                                              gramme,” he added.
   measures to improve the competitive-          Socialist Prime Minister Jose                                                                                                                                                           TOKYO: The cost to the global economy
   ness — and fiscal sustainability — of      Socrates asked for the bailout after                                                                                                                                                       of Japan’s stalled computer chip industry
   their economies did not constitute an      parliament last month rejected auster-                                                                                                                                                     remaining shuttered into May could be
   attack on Europe’s social model.           ity measures proposed by his minori-                                                                                                                                                       almost half a trillion dollars, a report said
      “The people have to understand          ty government, prompting his resig-                                                                                                                                                        Saturday. Manufacturers across Japan have
   that we’re not saving to upset them,       nation.                                                                                                                                                                                    closed down production lines or cut back
   but we are saving so that we can                                                       A protester holds up a placard during a trade union demonstration in Budapest on April 9. While EU finance ministers on                        their output because of direct damage or
   finance investments into social poli-                      Loan                                                                                                                                                                       supply chain problems caused by the earth-
                                                                                          Saturday met in Godollo, Hungary to defend harsh austerity measures as a necessary means to defeat the current debt
   cies in the future,” Luxembourg               Lisbon had earlier raised the possi-     crisis, thousands of trade union members marched in the main city to protest against those same austerity measures. (AP)                       quake and tsunami that struck the northeast
   Finance Minister Luc Frieden said.         bility of an emergency loan, but the                                                                                                                                                       on March 11.
      Swedish Finance Minister Anders         European Commission turned it                                                                                                                                                                 The Nikkei newspaper, citing a govern-
                                              down, saying such an arrangement
   Borg said he didn’t see a need for the
   demonstration. “It is quite clear that     was not possible under European                                     Economy, tourism figure in Brazil-Greece talks                                                                         ment estimate, said the knock-on impact on
                                                                                                                                                                                                                                         the global economy — caused by stalled
   the European social model is being         rules for aiding member countries in                                                                                                                                                       production in companies that use Japanese-
                                              difficulty.
   safeguarded,” he told reporters.
      But union leaders said workers
   already have been burdened exces-
                                                 “All parties have already admitted
                                              that the next government must be
                                                                                          Brazil’s Rousseff to seek more concessions                                                                                                     made parts as well as in related industries
                                                                                                                                                                                                                                         — could be 40 trillion yen ($470 billion).
                                                                                                                                                                                                                                            Renesas Electronics Corp., the largest
   sively and it is time that bankers take    able to count on majority support           BRASILIA, April 9, (Agencies): Brazil’s         to get tough with the inflow of Chinese           Last year Chinese imports, such as           maker of microcontrollers, sustained dam-
   more responsibility for the financial      from parliament,” Cavaco Silva said,        President Dilma Rousseff faces her most         goods, stepping up import barriers and         machinery and steel, grew a staggering 61       age to its plant in Ibaraki prefecture in the
   woes across the continent, which           speaking on the sidelines of a meet-        challenging foreign policy test yet when        making plans to adopt tougher quality          percent. Nearly half of Brazil’s manufac-       9.0 magnitude quake.
   have led to bailouts for Ireland and       ing of European Union finance min-          she visits China next week in a delicate        control measures.                              turers have lost market share to China at          Car manufacturers worldwide could
   Greece, and one under way in               isters near Budapest.                       balancing act to push for trade and invest-        The tone is a marked departure from         home.                                           take a 6.5 trillion yen hit if production of
   Portugal.                                     But his remarks drew a sharp             ment concessions without alienating her         that of her predecessor, Luiz Inacio Lula         “Brazil’s industry prepared itself in the    the key auto part does not resume until the
      “We are expressing ourselves in         rebuke from EU officials, with              country’s biggest customer.                     da Silva, who preferred to ignore differ-      1990s to compete with Europe and the            end of April, the paper said.
   different languages, but we share the      Finance Commissioner Ollie Rehn                For years both countries have benefited      ences in hopes of forging a common front       United States (not China),” said Antonio           One of the world’s leading silicon wafer
   same feelings and values,” Candido         saying he did not want a daily debate       from increased trade and closer political       with developing countries like China to        Barros de Castro, an expert on industrial       producers, Shin-Etsu Chemical Co, has a
   Mendez of Spain’s General Workers          with Portuguese leaders, “for the sake      ties that helped buttress their international   face U.S. and European interests.              policy.                                         subsidiary factory in Fukushima prefec-
   Union told the large crowd, which          of Portugal and the sake of Europe.”        clout on issues such as global governance.         Skepticism of China has been running           Business leaders admit Brazil’s huge         ture, which was damaged by the disaster.
   included union members from 22                Everyone involved had to “now               But with Brazil’s currency having            high in Brazil ahead of the trip, especially   tax burden, strong currency and red tape           If that factory stays closed for six weeks,
   European countries. “We want a             define a strategy which will ensure         swung in the opposite direction of China’s      as the local currency has reached its high-    erode their international competitiveness.      the damage to semiconductor production
   Europe with more jobs and more             there can be a swift, cross-party           cheap yuan, complaints by manufacturers         est levels since August 2008 — a problem       But they say China’s cheap yuan, import         worldwide could reach roughly 1.5 trillion
   social justice.”                           agreement on a programme of fiscal          over a wave of Chinese imports have             that is not China’s fault, but has in prac-    barriers and contraband tilt the playing        yen, the Nikkei said.
      Meanwhile, European and local           adjustment and structural reforms by        reached fever pitch. Some Brazilian offi-       tice made Chinese imports even cheaper         field against them.                                The hit to flat-panel television produc-
   trade unions held a massive demon-         mid-May,” he said.                          cials are also worried that China is using      compared to Brazilian goods.                      “The climate has become so bad, it’s         tion is estimated at about 400 billion yen.
   stration in the Hungarian capital                     Also:                            their country as little more than a super-         “China advances in new sectors and          not sustainable anymore. We need shock             The impact on related industries, includ-
   Budapest Saturday to protest austeri-      GODOLLO, Hungary: The head of               market for commodities such as iron ore,        destroys jobs,” Brazil’s business news-        treatment,” said Robson Andrade, head of        ing the electronic machinery, telecommu-
   ty measures, on the margins of a           Germany’s central bank is urging the        and not buying enough value-added               paper Valor said on its front page this        the industry confederation, CNI.                nications, Internet and broadcasting sec-
   meeting of European finance minis-         country’s banks to strengthen their         goods.                                          week.                                                       Also:                              tors, could reach about 32 trillion yen, it
   ters.                                      capital basis ahead of the upcoming            As a result, Rousseff is likely to push         In a likely preview of what Rousseff is     ATHENS, Greece: An official says the            said.
      “We want jobs, growth, our wel-         European stress tests.                      on her trip for a less lopsided trade and       to hear in Beijing, China’s ambassador in      leaders of Brazil and Greece have dis-
                                                                                          investment relationship between Latin           Brasilia said that Brazil needs to fix its                                                                       ❑ ❑ ❑
   fare state intact, and we are not going       Axel Weber said Saturday banks                                                                                                          cussed possible investments in the energy
   to pay for bankers’ mistakes,”             with an insufficient capital base           America’s and Asia’s largest economies.         problems at home if it wants to export         and tourism sectors.                               Japan’s Sharp Corp has suspended
   European Trade Union Confederation         should transform their silent partici-      Deals for investments in sectors from oil       more.                                             Prime Minister George Papandreou             work at two domestic LCD panel plants
   (ETUC) leader John Monks said in           pations into actual capital to pass the     and farming, and Chinese orders for more           “You need to make your own efforts to       held talks with Brazilian President Dilma       because of disruptions to industrial gas
   front of a crowd organisers estimated      tests.                                      planes, appear to be in the works.              improve the competitiveness of your            Rousseff, who is on a one-day visit to          supplies in the aftermath of the March 11
   at 45,000.                                    The tests will use tougher stan-            “What we want is more reciprocity,”          industry and economy,” Qiu Xiaoqi told         Greece on her way to China.                     disaster, a report said Saturday.
      The tens of thousands of marchers       dards to check the banks’ capital.          Rodrigo Baena, the presidential                 reporters recently. Brazil’s trade and for-       An aide to Papandreou, who spoke to             The company will idle its Kameyama
   swarmed from everywhere from               Silent participations — a kind of non-      spokesman, said about the objectives of         eign ministers heard a similar message         The Associated Press on customary con-          plant in southwestern Mie prefecture and
   Spain to Romania into Budapest,            voting holding that is counted as core      her five-day visit starting on Tuesday.         from high-level Chinese officials on a trip    dition of anonymity, says the agenda of         its Sakai plant in western Osaka until after
   which currently holds the rotating         capital in Germany — won’t be                  Rousseff will discuss the under-valued       to Beijing last month, a government offi-      the talks included the state of Greece’s        the Golden Week holiday season in early
   presidency of the European Union.          counted anymore.                            yuan at the highest level in China but will     cial told Reuters.                             economy, renewable energy sources,              May, the Nikkei newspaper said.
      The trade union-led delegations            Silent participations are common         seek to avoid direct confrontation, gov-           For now, raw materials make up rough-       tourism and the 2016 Summer Olympics,              No Sharp spokesman was immediately
   formed a giant and noisy cortege           with German public-sector regional          ernment officials say. Trade and Industry       ly three-quarters of Brazil’s exports to       which Rio de Janeiro will host 12 years         available to confirm the report.
   heading down one of the city’s main        banks known as Landesbanken —               Minister Fernando Pimentel said in              China — and nearly 90 percent of               after Athens.                                      The report did not specify what kind of
   drags from Heroes’ Square, sounding        several of which were badly hit dur-        January that the issue would be a top pri-      Chinese investments in Brazil are targeted        The aide says Rousseff also thanked          gases were involved, but disruptions across
   sirens over fears of hundreds of thou-     ing the financial crisis.                   ority on Rousseff’s trip but has since          at natural resource sectors, according to a    Papandreou for Greece’s evacuation of           the supply chain have hit manufacturers all
                                                                                          avoided public comments on it.                  study by the Brazil-China Business             150 Brazilian nationals from Libya last         over Japan in the wake of last month’s
                                                                                             In the meantime, Brazil has taken steps      Council.                                       month.                                          quake-tsunami.

				
DOCUMENT INFO