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European Business News (96-06-18)European Business News (EBN) Directory - Previous Article - Next ArticleFrom: The European Business News Server at <http://www.ebn.co.uk/>Page last updated June 18 11:05 CETCONTENTS
[01] Japanese GDP shows strongest growth in 23 yearsThe top government spokesman Tuesday welcomed the 3% growth in Japan's inflation-adjusted gross domestic product (GDP) in the January-March quarter from the previous quarter, the highest rise in 23 years since the corresponding period in 1973.'We would be thankful if the trend takes root,' Chief Cabinet Secretary Seiroku Kajiyama told a press conference. The rate is 'considerably high' on an annualized basis, although smaller companies and employment have yet to recover from the economic slump, he said. [02] Yeltsin wins endorsement from Alexander LebedBoris Yeltsin named Alexander Lebed head of the powerful Security Council on Tuesday and won a vital endorsement from the former general before the final round of the Russian presidential election.Yeltsin removed Defense Minister Pavel Grachev, a longtime rival of Lebed's who has been repeatedly criticized for his abysmal handling of Russian military affairs. Yeltsin signed a decree announcing that Lebed, who came in a strong third in the first round of the presidential election, would head the Security Council, which oversees the Russian military and police forces. Following a brief meeting in the Kremlin, Lebed issued the direct endorsement Yeltsin had been seeking, saying the agreement 'would serve not only as the unification of politicians, but of the forces serving them.' [03] EU set to cut Saxony's aid package for VolkswagenEuropean Union antitrust chief Karel Van Miert wants to cut 240 million marks ($157.1 million) from a German state aid package proposed as part of a massive Volkswagen AG investment in eastern Germany.After a protracted review, the competition commissioner was to request today that a portion of the 800 million marks in aid that the Saxony region wants to extend to VW is unacceptable under EU law. But EU officials say a German commissioner, Monika Wulf-Mathies, will ask that the matter be delayed for a week. Ms. Wulf-Mathies is expected to question a technical aspect of Mr. Van Miert's proposal and request that the matter be resolved before the commission votes. [04] EU gets mandate for US 'open skies' accordThe European Union (E.U.) got the green light to negotiate with the U.S. a common aviation area on behalf of the E.U.'s 15 member countries.E.U. Transport Commissioner Neil Kinnock said the mandate awarded by E.U. transport ministers won't affect bilateral agreements already in existence or under negotiation. 'The mandate will be used to win added-value in those areas where the combined political weight of 15 E.U. member countries can secure greater advantage,' Kinnock said in a statement. Kinnock added the mandate will allow E.U. carriers to take full benefit of the globalization of air markets. All except the U.K.'s minister agreed to award the mandate. The U.K. is at present pursuing a policy of obstruction of E.U. business linked with the E.U. ban on U.K. beef imports. However, the award of the mandate was by majority decision. [05] UK PSBR narrows to 3.21 billion in MayBritain's public sector borrowing requirement (PSBR) narrowed to 3.21 billion pounds in May from 3.50 billion pounds in April, the Office for National Statistics (CSO) reported Tuesday.April's PSBR was revised upward from the 3.26 billion pounds originally reported. Borrowing in May was down from the same month a year earlier, when the PSBR was 4.14 billion pounds. It was wider than previous forecasts for a May deficit on the order of 2.9 billion pounds. PSBR is the amount the government needs to borrow to plug the gap between its income and expenditure. [06] Italian producer prices show lowest year-on-year rise since 1992Italy's industrial producer price index (PPI) rose 0.1% in April from March, and 2.6% over the same month in 1995, the state statistical institute ISTAT reported Tuessday.Istat said the April year on year PPI rise was the lowest seen since December, 1992. By sector, the largest monthly increases were registered in petrol and natural gas, up 1.8%, and in agricultural machinery, up 0.5%. Meanwhile, office equipment showed a month on month drop of 0.9%. Among the highest year on year rises was car and car parts, up 5.5%, while office equipment showed a drop of 4.3% over the same period. [07] German wholesale prices rise more than expectedGerman wholesale prices in May rose 0.3% from April but fell 1.0% compared with May 1995, according to figures released Tuesday by the Federal Statistics Office.May's rise of 0.3% on the month was slightly more than the 0.2% increase that many economists had expected. At the same time, 1.0% year-on-year drop was less than the 1.1% decrease that had been forecast. On a month-on-month basis, the largest wholesale price increases in May were in grains (up 10%); scrap steel (up 7.9%); live pigs for slaughter (up 6.9%); raw non-ferrous metals (up 5.9%); frozen pork (up 5.1%); raw coffee (up 4.1%); fresh fruit (up 3.4%); fish meal and mixed feed (up 3.3%); and beer (up 1.8%). [08] Swedish central bank cuts repo rateSveriges Riksbank, the central bank of Sweden, cut its two-week reverse repurchase agreement to 6.10% from 6.30% at Tuesday's repo announcement.The rate reduction was widely expected and it continues the Riksbank's easing phase, which has implied rate cuts on the range of 0.20 percentage point every fortnight. Tuesday's cut is the 13th repo rate reduction this year and it follows a 0.20 percentage point reduction in the rate on June 4. At the start of the year, the repo rate was at 8.91%. From the European Business News (EBN) Server at http://www.ebn.co.uk/European Business News (EBN) Directory - Previous Article - Next Article |
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