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只看该作者 130 发表于: 2006-12-03
130、VW brand head in talks with DaimlerChrysler: report
Sat Dec 2, 2006 1:23pm ET

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More Business News... Email This Article | Print This Article | Reprints [-] Text [+] FRANKFURT (Reuters) - Volkwagen (VOWG.DE: Quote, Profile , Research) brand group chief Wolfgang Bernhard has met with DaimlerChrysler (DCXGn.DE: Quote, Profile , Research) head Dieter Zetsche to discuss his possible return to DaimlerChrysler, German magazine Automobilwoche said on Saturday.

The magazine also said Bernhard was in talks with Volkswagen about annulling his contract and that negotiations centered around a competition clause in it, which could prevent him from joining a rival car maker for up to two years.

Volkswagen announced last month that Chief Executive Bernd Pischetsrieder, who brought restructuring expert Bernhard into the group, would step down at the year's end and be replaced by Audi head Martin Winterkorn.

Since then, there has been mounting speculation in the German media that Bernhard, who used to work for DaimlerChrysler, could also be leaving Volkswagen.

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Automobilwoche said Bernhard could be a successor to Chrysler's Tom LaSorda after big losses as the U.S. carmaker.

Bernhard used to be Chrysler's chief operating officer and was a prime architect of the U.S. carmaker's turnaround early this decade when Zetsche was Chrysler head.

Bernhard was poised to moved to Stuttgart as lead the group's premium Mercedes Car Group when he was ditched at the last moment in a management shakeup in April 2004.

Labor representatives were leery of him after he was reported as saying former crown jewel Mercedes was a "restructuring case".

Volkswagen's Pischetsrieder lured him to VW with the job of heading the Volkswagen brand group, where he has slashed costs and boosted efficiency amid a steady earnings rebound.   Continued...
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只看该作者 131 发表于: 2006-12-03
131、 Delphi, GM exchange 'draft agreements' Sat Dec 2, 2:07 PM ET



DETROIT - Talks are progressing between Delphi Corp. and former parent General Motors as they negotiate to try to help the auto parts supplier emerge from bankruptcy protection, according to court documents.

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The two sides have exchanged "draft agreements," according to a 110-page report that was filed late Thursday in U.S. Bankruptcy Court in New York, The Detroit News reported.

"The parties have exchanged various draft agreements and term sheets, which taken together, have advanced negotiations considerably," Delphi bankruptcy lawyer Jack Butler wrote in the report. "The framework agreement remains a work in progress."

GM has been trying to reach an agreement with Delphi and the supplier's creditors over the size of the automaker's obligation to its former parts unit, which was spun off, and its workers.

GM spokeswoman Renee Rashid-Merem said a resolution remains a top priority.

"These are very spirited and very productive negotiations and we're optimistic," she said.

Delphi, the nation's largest auto parts supplier, filed for bankruptcy protection in October 2005. A deal could help GM avoid getting caught in a strike at Delphi because of the supplier's wage cut demands.

On Thursday, Judge Robert Drain of the Southern District of New York approved a settlement of accounting fraud charges against Delphi and six people, including the supplier's former chief financial officer.

___

On the Net:

Delphi Corp.: http://www.delphi.com

General Motors Corp.: http://www.gm.com
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只看该作者 132 发表于: 2006-12-03
132、Dollars drop in Asia double-edged sword By KELLY OLSEN, AP Business Writer
Sat Dec 2, 2:25 PM ET



SEOUL, South Korea - Thai frozen food exporters are calling for the government to stop the baht's surge and South Korean automakers are seeing their earnings shrink.

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At the same time, Indonesian textile makers are happy to see raw material prices decline and more Filipinos are flying abroad.

The dollar's drop against many Asian currencies is a double-edged sword, dealing a blow to the region's export-driven economies, but drawing cheers from some quarters as imports get cheaper and overseas travel less expensive.

The dollar, already weakening for much of the year, has taken a tumble since last week amid concerns over a slowdown in the U.S. economy and speculation that China is swapping dollars for euros and yen in its nearly $1 trillion foreign currency reserves.

Alarmed about the baht's 14.2 percent gain against the dollar this year, the Bank of Thailand intervened in the currency market Friday and earlier in the week, to try to curb the baht's surge, said Nitaya Pibulratanagit, the assistant governor.

"The baht has risen beyond its fundamentals," said Suchada Kirakul, the central bank's senior director for the domestic economy, blaming at least some of the appreciation on speculative inflows from offshore investors.

Central banks in the Philippines, Taiwan and     South Korea also bought dollars in the currency market this week, traders said.

But the dollar continues to languish, falling Friday as low as 115.48 yen, 35.7 baht and 927.5 Korean won before recovering some lost ground.

Optimism about Asian economies has also contributed to currency gains. The South Korean won is near its strongest levels since 1997. The Philippine peso and Indonesian rupiah have strengthened. Even China's yuan is steadily inching higher, hitting fresh highs nearly every week, though U.S. authorities would like to see it appreciate even more.

These gains mean that American consumers could pay higher prices on at least some Asian exports just as the holiday shopping season gets into full swing.

Recent indicators of U.S. consumer spending are mixed, with sales during the Friday and Saturday of Thanksgiving weekend up 3.4 percent compared to the same period last year, according to retail outlet monitor ShopperTrak RCT Corp. But the consumer confidence index fell unexpectedly in November, according to the New York-based     Conference Board.

"World trade has been growing so that's probably enough to offset the currencies' appreciating," said David Cohen, Singapore-based chief of Asian economic forecasting at Action Economics. "So far it looks as if the U.S. consumer will continue to spend."

South Korea's Kia Motors Corp. has felt the won's strength ― the dollar is down 8 percent this year ― pinch its foreign income. To avoid currency exposure, it plans to dramatically boost output at factories in China, Slovakia and the U.S. due to come on line by 2010 to 1.03 million vehicles from 130,000 now.

"Obviously one of the main motivations of our aggressive overseas production expansion to a certain extent addresses the currency risk," said Kia spokesman Michael Choo.

The appreciation of the Thai baht ― at an eight-year high against the dollar ― has been one of the sharpest, prompting exporters to submit a petition this month to Prime Minister Surayud Chulanont, the finance chief and the central bank governor.

"We demand that they implement appropriate measures to maintain baht stability in order to maintain the country's competitiveness," said the petition by 10 export-oriented groups, including the Thai Frozen Foods Association. "The persistent rise in the baht makes us unable to compete in terms of price."

Japan, Asia's biggest economy, hasn't seen a dramatic appreciation in its currency: The dollar is down just 1.6 percent this year against the yen. But the dollar's recent tumble has prompted investors to sell major exporters' stocks like Toyota Motor Corp. and Sony Corp (NYSE:SNE - news).

In the Philippines, where the dollar has declined about 6 percent against the peso this year, the pain has been most acutely felt by small and medium-sized exporters of indigenous products like furniture, handicrafts, processed foods, and marine and agriculture-based products, said Sergio Ortiz-Luis, head of the Philippine Exporters Confederation Inc.

But the Philippine Travel Agencies Association says the stronger peso and budget airfares have sparked a marked increase in outbound travel in the last quarter of the year.

"It's also because of affordable airfares offered by budget airlines," said Jose Clemente III, head of the association. "The stronger peso complements that, so travel becomes much cheaper now."

Also, the dollar's drop against the Indonesian rupiah ― around 7 percent this year ― has helped companies such as building materials and textile makers that import large quantities of raw materials in dollars ― sometimes as much of 40 percent ― which are then used to make products for export.

The Chinese yuan, meanwhile, has climbed a modest 3.5 percent since authorities revalued it in July 2005 and Friday hit a new high against the dollar.

Though the official American position is that a strong dollar is in U.S. national interests, officials like Treasury Secretary Henry Paulson want China to further loosen currency controls to allow the yuan to appreciate as a means of addressing Beijing's trade surplus with the U.S., which hit an all-time high of $102 billion last year.

____

Associated Press writers Anthony Deutsch in Jakarta, Yuri Kageyama in Tokyo, Elaine Kurtenbach in Shanghai, Grant Peck in Bangkok and Teresa Cerojano in Manila contributed to this report.
级别: 管理员
只看该作者 133 发表于: 2006-12-03
133、 Dollars drop in Asia double-edged sword By KELLY OLSEN, AP Business Writer
Sat Dec 2, 2:25 PM ET



SEOUL, South Korea - Thai frozen food exporters are calling for the government to stop the baht's surge and South Korean automakers are seeing their earnings shrink.

ADVERTISEMENT

At the same time, Indonesian textile makers are happy to see raw material prices decline and more Filipinos are flying abroad.

The dollar's drop against many Asian currencies is a double-edged sword, dealing a blow to the region's export-driven economies, but drawing cheers from some quarters as imports get cheaper and overseas travel less expensive.

The dollar, already weakening for much of the year, has taken a tumble since last week amid concerns over a slowdown in the U.S. economy and speculation that China is swapping dollars for euros and yen in its nearly $1 trillion foreign currency reserves.

Alarmed about the baht's 14.2 percent gain against the dollar this year, the Bank of Thailand intervened in the currency market Friday and earlier in the week, to try to curb the baht's surge, said Nitaya Pibulratanagit, the assistant governor.

"The baht has risen beyond its fundamentals," said Suchada Kirakul, the central bank's senior director for the domestic economy, blaming at least some of the appreciation on speculative inflows from offshore investors.

Central banks in the Philippines, Taiwan and     South Korea also bought dollars in the currency market this week, traders said.

But the dollar continues to languish, falling Friday as low as 115.48 yen, 35.7 baht and 927.5 Korean won before recovering some lost ground.

Optimism about Asian economies has also contributed to currency gains. The South Korean won is near its strongest levels since 1997. The Philippine peso and Indonesian rupiah have strengthened. Even China's yuan is steadily inching higher, hitting fresh highs nearly every week, though U.S. authorities would like to see it appreciate even more.

These gains mean that American consumers could pay higher prices on at least some Asian exports just as the holiday shopping season gets into full swing.

Recent indicators of U.S. consumer spending are mixed, with sales during the Friday and Saturday of Thanksgiving weekend up 3.4 percent compared to the same period last year, according to retail outlet monitor ShopperTrak RCT Corp. But the consumer confidence index fell unexpectedly in November, according to the New York-based     Conference Board.

"World trade has been growing so that's probably enough to offset the currencies' appreciating," said David Cohen, Singapore-based chief of Asian economic forecasting at Action Economics. "So far it looks as if the U.S. consumer will continue to spend."

South Korea's Kia Motors Corp. has felt the won's strength ― the dollar is down 8 percent this year ― pinch its foreign income. To avoid currency exposure, it plans to dramatically boost output at factories in China, Slovakia and the U.S. due to come on line by 2010 to 1.03 million vehicles from 130,000 now.

"Obviously one of the main motivations of our aggressive overseas production expansion to a certain extent addresses the currency risk," said Kia spokesman Michael Choo.

The appreciation of the Thai baht ― at an eight-year high against the dollar ― has been one of the sharpest, prompting exporters to submit a petition this month to Prime Minister Surayud Chulanont, the finance chief and the central bank governor.

"We demand that they implement appropriate measures to maintain baht stability in order to maintain the country's competitiveness," said the petition by 10 export-oriented groups, including the Thai Frozen Foods Association. "The persistent rise in the baht makes us unable to compete in terms of price."

Japan, Asia's biggest economy, hasn't seen a dramatic appreciation in its currency: The dollar is down just 1.6 percent this year against the yen. But the dollar's recent tumble has prompted investors to sell major exporters' stocks like Toyota Motor Corp. and Sony Corp (NYSE:SNE - news).

In the Philippines, where the dollar has declined about 6 percent against the peso this year, the pain has been most acutely felt by small and medium-sized exporters of indigenous products like furniture, handicrafts, processed foods, and marine and agriculture-based products, said Sergio Ortiz-Luis, head of the Philippine Exporters Confederation Inc.

But the Philippine Travel Agencies Association says the stronger peso and budget airfares have sparked a marked increase in outbound travel in the last quarter of the year.

"It's also because of affordable airfares offered by budget airlines," said Jose Clemente III, head of the association. "The stronger peso complements that, so travel becomes much cheaper now."

Also, the dollar's drop against the Indonesian rupiah ― around 7 percent this year ― has helped companies such as building materials and textile makers that import large quantities of raw materials in dollars ― sometimes as much of 40 percent ― which are then used to make products for export.

The Chinese yuan, meanwhile, has climbed a modest 3.5 percent since authorities revalued it in July 2005 and Friday hit a new high against the dollar.

Though the official American position is that a strong dollar is in U.S. national interests, officials like Treasury Secretary Henry Paulson want China to further loosen currency controls to allow the yuan to appreciate as a means of addressing Beijing's trade surplus with the U.S., which hit an all-time high of $102 billion last year.

____

Associated Press writers Anthony Deutsch in Jakarta, Yuri Kageyama in Tokyo, Elaine Kurtenbach in Shanghai, Grant Peck in Bangkok and Teresa Cerojano in Manila contributed to this report.
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La. orange crop still down after storms By BECKY BOHRER, Associated Press Writer
Sat Dec 2, 2:22 PM ET



JESUIT BEND, La. - Last year's hurricanes flooded Ben Becnel Sr.'s citrus groves with saltwater, thrashed three of his greenhouses and workers' quarters and destroyed or otherwise damaged hundreds of orange trees.

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And he was one of the lucky ones.

Further south in Plaquemines Parish, Katrina and Rita laid waste to entire communities, destroying houses and livelihoods and threatening the future of the state's prized, niche citrus industry.

"We've lost a lot before," with hurricanes and freezing temperatures killing trees, if not groves, agricultural agent Alan Vaughn said. But this is different, he said: "With freezes, you could go back and plant trees. Now, the grove is the low man on the list, when you have to rebuild your house."

With harvest under way and the parish's weekend-long orange festival set to begin Friday, farmers like Becnel, with navel oranges and satsuma mandarins to sell, are trying to fill strong demand, while older producers such as 73-year-old Gerald Ragas are struggling to start over.

It will be at least four years until the small trees he replanted to replace some of the 450 trees he lost will begin bearing fruit.

"I've had people say, Are you out of your mind, Jerry?" said Ragas, who lives near Buras. " ... What am I going to do, sit in a recliner chair and go away?"

Louisiana's citrus industry has a cult-like, regional following and is known especially for its navel oranges. The first trees were planted during French colonial times, in the 1700s, but serious farming didn't begin until the 1850s. Only about 1,330 citrus acres were planted statewide in 2004, tiny when compared to the hundreds of thousands of acres in industry leaders Florida, California and Texas. It's such a niche market that the U.S.     Department of Agriculture only reports on Louisiana's industry every five years.

Many of Louisiana's citrus farms are in Plaquemines Parish, where a long finger of Mississippi River delta extends into the warm waters of the Gulf of Mexico, creating an excellent climate for citrus growing. In 2004, parish farmers produced 405,000 bushels of navels and satsumas, the vast majority of the statewide total, according to the LSU Agricultural Center. Some of the fruit was shipped out of state and to major cities such as Chicago. But most of it was sold closer to home, through word of mouth and from places like roadside stands or regional grocers.

In 2005, the year of the storms, parish production fell to 120,000 bushels ― and the market became more localized.

The hurricanes wiped out about half the acreage in Plaquemines, Vaughn said, leaving behind limited oranges and questions about whether the industry, comprised of family farms, can rebound.

"Until insurance issues and levee issues are cleared up, that's a question in people's minds," parish President Benny Rousselle said. "How many will replant?"

Vaughn isn't convinced everyone will; the work is hard, and farmers are getting older. "I don't know we can (fully) recover," he said.

Ask folks what makes Plaquemines oranges so great, and they'll know instantly that you're not from here. This is, after all, a fruit that's celebrated each year.

"If you taste our fruit, I've never had anyone say, Eh, that's OK," Vaughn said. "The navels will drip (juice) down your arm." Vaughn believes the climate and rich delta soil give Plaquemines oranges an edge in taste.

J.B. Falgoust, who has bought Plaquemines oranges for years, recently traveled about 110 miles, from his home near Vacherie, upriver from New Orleans, to Buras, to find Ragas and the oranges he's traditionally given as Christmas presents.

"You'd think he'd say 'I quit.' But no, he's coming back," Falgoust said.

The Becnels, who also sell citrus at a roadside stand, have been supplying loyal customers with limited amounts of fruit but turning down some orders, Becnel Jr. said. In years past, fruit would be shipped to customers and chain stores in markets such as Atlanta, Indianapolis and St. Louis. But this year, with a supply pinched by last year's hurricanes and poorer growing conditions, the farthest its being trucked is Baton Rouge, Becnel Sr. said.

Prices are up from 2004, from about $14 for a 40-pound box to $22.50 a box. But with costs such as spraying and fertilizing, and the total loss of about 350 trees to the storms, it still won't be enough to break even, Becnel Sr. said.

He figures they'll produce just 10,000 boxes of fruit this year; in a good year, they'd produce three to four times that. Their financial saving grace will be their vegetables, which did well, he said.

While it's been a difficult year, the Becnels, fifth and sixth generations in this business, can't see getting out of the industry now; it's what they know.

Becnel Jr. said he'd keep on "until God moves me."

"He was close," he said, "but we're still here."
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只看该作者 135 发表于: 2006-12-03
135、Kerkorian sold GM shares to avoid long fight: WSJ
Sat Dec 2, 2006 2:04pm ET

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CHICAGO (Reuters) - Billionaire investor Kirk Kerkorian sold his stake in General Motors Corp. (GM.N: Quote, Profile , Research) after deciding that he did not want to participate in a lengthy fight with management for control of the world's biggest car maker, according to a report in the Wall Street Journal.

"I like to gamble," the newspaper said Kerkorian told his adviser, Terry Christensen. "But I stop gambling when there's no chance to win."

Kerkorian had built up a 9.9 percent stake in GM and agitated for an accelerated turnaround at the company. Some analysts had expected him to mount a proxy fight for control of GM rather than cash out of his stake.

Kerkorian had been involved with GM for 19 months.


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"I'm happy with it," the Journal said he told advisers about his investment. "Let's move on."
级别: 管理员
只看该作者 136 发表于: 2006-12-03
136、Kerkorian sold GM shares to avoid long fight: WSJ
Sat Dec 2, 2006 2:04pm ET

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Business News
OPEC divided on need for deeper output curbs
Mack-Cali pulls out of Icahn's Reckson bid
Jobs and data to call stocks' year-end tune
VIDEO: Manufacturing hurts markets
More Business News... Email This Article | Print This Article | Reprints [-] Text [+]
CHICAGO (Reuters) - Billionaire investor Kirk Kerkorian sold his stake in General Motors Corp. (GM.N: Quote, Profile , Research) after deciding that he did not want to participate in a lengthy fight with management for control of the world's biggest car maker, according to a report in the Wall Street Journal.

"I like to gamble," the newspaper said Kerkorian told his adviser, Terry Christensen. "But I stop gambling when there's no chance to win."

Kerkorian had built up a 9.9 percent stake in GM and agitated for an accelerated turnaround at the company. Some analysts had expected him to mount a proxy fight for control of GM rather than cash out of his stake.

Kerkorian had been involved with GM for 19 months.


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"I'm happy with it," the Journal said he told advisers about his investment. "Let's move on."
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只看该作者 137 发表于: 2006-12-03
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Ecuador leader eyes wealth distribution By MONTE HAYES, Associated Press Writer
Sat Dec 2, 2:41 PM ET



QUITO, Ecuador - Ecuador's president-elect joins a wave of Latin American leaders swept into power opposing the free-market economic policies that are preached by Washington but are hugely unpopular among the region's poor.

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After two decades of privatization and trade liberalization across the hemisphere, leftist leaders ― most notably Hugo Chavez in Venezuela and Evo Morales in Bolivia ― are exerting more state control over their nations' economies to promote wealth distribution.

Rafael Correa, the U.S-educated economist who will take over the presidency of this small Andean nation in January, says he will apply the same prescription in his country, where three-fourths of its inhabitants live in poverty despite Ecuador being South America's fifth largest oil producer.

Correa, 43, plans to tighten government control over the banking system and expand the state oil company's role in production and commercialization of Ecuador's oil.

He also wants to cut ties to international lending institutions, including the     World Bank and the     International Monetary Fund, and has threatened a moratorium on foreign debt payments unless foreign bondholders agree to lower Ecuador's debt service by half.

He said Ecuador cannot afford its current $2 billion (euro1.6 billion) annual debt service, representing 7 percent of the country's gross domestic product. "Ecuador cannot pay more than 3 percent," he said.

In his first statements after defeating banana tycoon Alvaro Noboa, Correa criticized the free-market policies that he says have failed to improve the lives of Ecuadoreans and urged them to join him "to overcome 20 years of a long and sad neoliberal night."

Correa laid out his economic vision in his 2001 doctoral thesis at the University of Illinois, in which he blames the "Washington Consensus" ― a set of U.S.-backed free-market policies ― for the region's economic ills and analyzes the potential of a common regional currency as a partial solution.

"He was, like I am, a critic of some of the aspects of the so-called Washington Consensus, which preached orthodoxy but just never talked much about the problems of income distribution," said Werner Baer, a University of Illinois economics professor who sat on the committee that approved Correa's doctorate in 2001.

Correa opposes a trade agreement with the United States because he says it will hurt Ecuador's farmers and is a sharp critic of globalization in general.

In the first reaction to his election, Ecuador's bonds were hammered on Wall Street because of concern over his policies, including his threats to unilaterally lower payments on Ecuador's $16.8 billion (euro12.8 billion) foreign debt to free up money for social programs.

On Tuesday he reiterated that he did not discard a moratorium on debt payments, a step that could cut off Ecuador's access to new foreign credit, something that doesn't seem to worry Correa.

"If country risk goes up because of speculators worrying over our ability to pay the debt, I don't care," he said this week. "The country risk I care about is children suffering.

"If they're nervous, let them take a Valium. What more can I do?"

Such statements worry Ecuadorean business leaders, who say they feel Correa's life as an academic has kept him out of touch with economic realities.

"The announcement of a possible foreign-debt moratorium is a bad sign before beginning to govern," said Alberto Dassum, president of the Chamber of Industries of Guayaquil, Ecuador's largest city and its business center. "Ecuador has commitments and it should meet them."

He said such statements worried not only foreign investors but also Ecuadorean companies which are now reconsidering potential investments.

"To invest in the medium term, as is the case with industries, you need stability and rules that don't change," Dassum said.

Alfredo Arizaga, an economist who is co-director of the Quito think tank Quantum, has a darker view of what may result from Correa's plans.

His hope is that once in power Correa will realize many of his ideas are not realistic and could harm economic growth and development.

Arizaga said he's most concerned by Correa's plans to tighten controls over banks and pressure oil companies to hand over a much larger quantity of oil to the state.

"We are going to begin to review the contracts with oil companies," Correa said Wednesday. "We cannot permit that they take four of each five barrels and leave us one." He said his objective is to reverse the ratio, a situation that existed 35 years ago when Ecuador first began producing oil.

Oil is Ecuador's major export, providing 55 percent of its annual export income of $9.8 billion (euro7.4 billion).

Arizaga warned that if Correa pressures foreign oil companies into turning over more oil, they will cut back on investment in the oil fields and in "two or three years the production in those oil fields will fall drastically and oil income will fall."

If that happens, he said, "there will be a very strong social and political crisis."

He said he foresees a crisis much sooner if Correa tightens controls over banks and forces them to pull their reserve funds, now kept in foreign banks, back to Ecuador. Such steps, he says, could frighten people into withdrawing their money.

"I think that would provoke a crisis almost immediately," Arizaga said.

Correa has tried to reassure Ecuadoreans that he intends to maintain the dollar as Ecuador's official currency for the next four years. The dollar was adopted in 2000 to halt hyperinflation, and Ecuadoreans see it as a symbol of stability.

Correa admits that for ideological, nationalistic reasons it galls him to use the U.S. currency. He says that in the long run the dollar's use will make Ecuador's non-oil exports increasingly uncompetitive but dropping it in the near future would cause chaos.

As a long-term goal, he would like to see the Andean nations develop a regional currency, a possibility deemed unrealistic by most economists.

"I think dollarization was the biggest economic error this country has ever committed," he said during a campaign debate.
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Europe calmly looks at sliding dollar By DAVID McHUGH, AP Business Writer
Sat Dec 2, 2:31 PM ET



BERLIN - With the European economy on the upswing, companies and governments are shrugging off the dollar's renewed slide against the euro this week ― a phenomenon once dreaded as potential poison for the continent's many exporters.

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Companies appear to have made their peace with a stronger currency for the time being, especially in export champion Germany, helped by stronger growth at home, currency hedging and increasingly globalized production practices.

The euro reached $1.3257 in European trading Thursday, up from $1.3156 in New York late Wednesday, a 20-month high. The pound hit $1.9644, its strongest since September 1992, with analysts saying the British currency could reach $2 by the end of the year.

Stronger currencies hurt a country's exports by making their goods more expensive in foreign markets. But European policy makers ― except for the French ― have issued a large, collective yawn.

"I am not concerned," said Dutch central bank head Nout Wellink. Bernd Pfaffenbach, Germany's deputy economics minister, said the stronger euro "reflects the strength of the European economy" ― but conceded it was not particularly helpful for exports.

European Central Bank President Jean-Claude Trichet, who decried the dollar's slide in 2004 as "sudden and brutal," did not bother to try to try to talk the euro down. He declined comment on the exchange rate after a speech Wednesday.

Reasons for the calm are several. Many companies have at least some production in the United States, eliminating exchange rate issues for products sold in the world's largest economy, while others have limited their exposure to currency swings through complex hedging deals.

Stronger economic growth, with the countries that use the euro expected to see expansion of 2.6 percent this year over 1.4 percent in 2005, reduces the pain as people remember that predictions of doom when the euro hit its record $1.3667 in December 2004 did not come true.

"People have gotten used to the stronger euro," said economist Christian Dreger at the German Institute for Economic Research in Berlin. "That is the difference from two years ago."

He pointed out that in late 2004, the dollar had completed a dizzying two-year slide from its abnormally high levels in 2000-2002, while the current drop is relatively modest, with the euro rising from levels around $1.25 for much of the year.

The stronger euro also reduces inflation by making imports cheaper, Dreger added. That in turn reduces the need for the European Central Bank to continue with its interest rate increases, which fight inflation but can dampen growth.

In any case, European policy makers can do little about the exchange rate except live with it, since rates are determined on the world's trillion-dollar-a-day currency market, blown by the whims of fear and greed. Or, as U.S. Treasury Secretary John Connally once famously put it, the dollar is "our currency and your problem."

Economists say the large U.S. trade and budget deficits are putting long-term pressure on the dollar. The most recent dollar slide accelerated after comments by ECB head Trichet in October that the bank might need to raise its key rate from 3.25 percent to combat inflationary pressures from an increasing money supply. At the same time, expectations have grown that the U.S.     Federal Reserve may cut interest rates sometime next year.

Higher rates in Europe relative to the U.S. drive the euro up by increasing the yield on some euro investments.

Major companies have made only muted comment on the exchange rate, another contrast with 2004 when some businesses cited the strong euro as a partial excuse for lower-than-desired earnings. Automaker DaimlerChrysler AG cited its strategy: "We protect ourselves against currency fluctuations in order to make possible a reliable planning foundation for our business units." Porsche AG, which relies heavily on U.S. sales, says it has hedged a full three years ahead.

Perhaps more importantly, DaimlerChrysler and many other companies can take advantage of so-called "natural" hedging. Its U.S. Chrysler arm and truck production pay costs and reap sales alike in dollars ― eliminating currency swings.

Likewise, Munich-based luxury competitor BMW makes its X5 sport utility vehicle and Z4 roadster in South Carolina ― paying costs in dollars and exporting some of them back to Europe, where they take advantage of the exchange rate by earning pricey euros.

The one exception to the calm in Europe is France, where Finance Minister Thierry Breton urged "collective vigilance" over exchange rates. France is facing a presidential election this year, with a zero-growth economy in the third quarter.

Not only that, but Airbus parent EADS faces a squeeze between its costs ― paid in euros ― and its revenues, since international practice is to price jetliners in dollars. The dollar's weakness has only added to its financial squeeze as European Aeronautic Defence and Space Co. struggles to launch a new mid-sized jet program while coping with a two-year delay in its A380 jumbo jet.

Economists say the general acceptance could change if the euro hits $1.40 or $1.50 next year, or if the slide moves so fast that businesses can't adjust.

Until then, many companies are taking the attitude of Italy's Luxottica Group SpA. Even though more than 70 percent of its manufacturing is done in Italy, the world's largest manufacturer and retailer of eyewear said its business in the United States nearly equals its U.S. costs.

About 70 percent of Luxottica's revenues are generated in the U.S., where it operates 4,500 Sunglass Hut, Pearle Vision and LensCrafters stores, while 65 percent of its costs are in U.S. dollars. Although the exchange rate shrinks U.S. earnings when they're translated to euros, profit margins aren't affected.

"Most of our dollar revenue is hedged because a similar portion of our costs are in that currency," said spokesman Luca Biondollilo. "At the end of the day, we have a natural hedge."
级别: 管理员
只看该作者 139 发表于: 2006-12-03
139、BAE optimistic on Saudi despite fighter furor
Sat Dec 2, 2006 3:00pm ET

advertisement   Email This Article | Print This Article | Reprints [-] Text [+] RIYADH (Reuters) - BAE Systems (BA.L: Quote, Profile , Research) is optimistic about the future of its business with Saudi Arabia, a senior manager said on Saturday, despite reports that the key customer had suspended talks over a multi-billion-pound arms deal.

Damien Turner, Managing Director of BAE Systems Middle East, declined to comment directly on reports by British newspapers that Saudi Arabia had given Britain 10 days to halt a fraud probe or lose a contract for 72 Eurofighter Typhoon combat jets.

But asked whether talks were still on, he said: "Why should they stop? ... All business in the Middle East, whether it's in Saudi Arabia or other locations -- and when you are talking about aerospace -- is not simple.

"It is not done overnight."

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"These programs have been for a long time in gestation, and they will continue to be that way and we are taking a very long-term view of the future, a positive view," Turner added.

Turner was speaking to reporters after an upbeat address on the firm's plans in the kingdom at a conference attended by Crown Prince and Defense Minister Prince Sultan.

Britain said on Friday it would not seek to intervene in the two-year investigation by the Serious Fraud Office (SFO) into suspected accounting irregularities related to BAE.

The Daily Telegraph had reported on Thursday that Riyadh had given London 10 days to halt the SFO inquiry or lose the contract for the Typhoons being jointly developed by BAE Systems, Europe's largest defense firm.

BAE Chief Executive Mike Turner was quoted in the Financial Times earlier as saying talks about the sale of the Typhoons to Saudi Arabia had stalled amid the widening probe into BAE.   Continued...
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