European Business News 96-08-02

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From: The European Business News Server at <http://www.ebn.co.uk/>

Page last updated August 2 14:10 CET

CONTENTS

[01] EU considers widening beef ban to cattle

[02] Canal + and Bertelsman reconsider ties

[03] Markets await US jobless figures

[04] Wiggins results expectations reduced

[05] US Japan semiconductor talks deadline extendec

[06] Deutsche Telecopm may join forces with Bell Cablemedia

[07] No more ponytails for the Dutch Army

[08] Scania posts poor results

[09] German Industrial Production up 0.4%

[01] EU considers widening beef ban to cattle

The disease, which has been linked to a fatal brain ailment in humans, caused a public health scare in the spring and an EU ban on Britain's worldwide exports of beef. To end the ban, Britain must kill at least 120,000 cows deemed most at risk of mad cow disease, known as Bovine Spongiform Encephalopathy.

Cows contract BSE from feed containing ground-up brain and spinal cord tissue. Britain stopped using bone meal in 1988, but mad cow disease has an incubation period of at least 5 years. On Thursday, British scientists reported cows can pass BSE to their calves. That may lead to a widening of the slaughter program, an issue debated here by veterinary experts from all 15 EU nations.

Britain's Chief Veterinary officer Keith Meldrum briefed his EU counterparts on the new data from London. In London, British Agriculture Minister Douglas Hogg said: 'We shall need to take stock of the practical implications (of the report's findings) in particular for the proposed selective cull of cattle...'

The report was released as the EU head office closed down for a month- long summer break. EU spokesman Jurgen Kubosch said he 'could not exclude the (British slaughter) plan would have to be revised (but) we'll have to take a little bit of time to have a reaction.'

[02] Canal + and Bertelsman reconsider ties

But after a meeting Wednesday night between Canal Plus Chairman Pierre Lescure and Michael Dornemann, the Bertelsmann board member in charge of electronic media, Canal Plus said on Thursday that the two companies are 'reconstructing' their ties.

Irritations in the alliance with Canal Plus first emerged when Bertelsmann merged its TV interests with Cie. Luxembourgeoise de Telediffusion SA. Now Bertelsmann and Canal Plus are assessing the fallout from Bertelsmann's agreement with Kirch.

'We're not irritated by the fact that Bertelsmann talked to Kirch, because everybody is talking to everybody,' said a spokeswoman for Canal Plus. In a group interview with German journalists Wednesday, Feffer said Canal Plus still plans to launch five entertainment channels on the German market, preferably as part of Kirch's digital package.

He said Canal Plus still needs a partner in the German pay- TV market. That could be Bertelsmann or Kirch, Feffer said. Bertelsmann is planning to launch a digital service, but a smaller one than Kirch's.

[03] Markets await US jobless figures

The global markets have been anticipating the report all week for hints on whether the Federal Reserve might alter its monetary policy. But analysts say they do not expect today's report to upset the markets.

Other data out this week, including the purchasing managers index and GDP, have shown that growth in the US economy has not been too inflationary.

[04] Wiggins results expectations reduced

Turnover for the second quarter alone was 895 million pounds, down from 910 million last year. Under its listing requirements with the Paris Bourse, Arjo Wiggins is required to disclose quarterly turnover figures. However, due to reporting times, the company said turnover statistics appearing in the half-year accounts 'may differ when final management review is completed.'

Arjo Wiggins stated at the annual general meeting in May that it expects results for the first half of the year to be 'poor' and that the outlook for the second half was 'uncertain.' 'In view of the results for the first half, which will be announced in early September, our current expectations for the year as a whole have been reduced,' the company said.

[05] US Japan semiconductor talks deadline extendec

Tsukahara, speaking to reporters after meeting with Barshefsky for the third time Thursday, said there was little progress. The two nations are trying to find a compromise over the renewal of a semiconductor pact that expired Wednesday night.

The U.S. and Japan failed earlier to reach a deal in their insurance dispute, but said they did make significant progress on that issue and negotiations are expected to continue sometime in the near future.

[06] Deutsche Telecopm may join forces with Bell Cablemedia

The two cable companies' franchises span London's central banking district. A deal would pose a serious challenge to British Telecom and Mercury which dominate the corporate telecoms market in the UK.

[07] No more ponytails for the Dutch Army

The 1970s image of long hippy-style locks topped with a soldier's beret is out, and the military is set to outlaw ear-rings and crack down on drug abuse in the new professional army as conscription is phased out in the Netherlands. In a memo widely quoted in the Dutch media this week, a senior military commander said: 'Our product is good, but sometimes the packaging lets us down.'

Two airmen serving with the Dutch F-16 squadron at NATO's Villafranca airbase in Italy were sent home recently after refusing to have their flowing locks shorn.

'These soldiers lack a professional image,' the air force said, prompting fierce protests from Dutch military unions who in the 1970s won the right for their members to wear long hair.

[08] Scania posts poor results

The profit was at the low end of analysts' expectations, which on average targeted a profit of 2.15 billion kronor. 'With the change- over of production to the new 4-series we are in a phase of considerable adjustment which leads to higher costs,' said Scania president Leif Oestling in a comment. 'Naturally the stronger krona has also contributed negatively to the result but I am very pleased with how our sales organization and the market has received the generation of trucks.'

In western Europe, Scania's market share grew to 16.1% from 14.7%, while order intake fell 4%. The Brazilian market, meanwhile, stabilized during the second quarter at an annual volume of around 14,000 vehicles.

[09] German Industrial Production up 0.4%

Industrial production was down an unadjusted 4.0% from June 1995.

The data released Friday have been calculated for the first time on the basis of a uniform European Union (E.U.) method, it said. As such, they can not be directly compared to the data released last month.

According to the new calculation, western German output in May rose 0.7% from April, but was down 5.3% from May 1996. The data are preliminary, as the ministry will revise June data in a month and all data once again mid-1997.

From the European Business News (EBN) Server at http://www.ebn.co.uk/

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