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European Business News 96-08-14European Business News (EBN) Directory - Previous Article - Next ArticleFrom: The European Business News Server at <http://www.ebn.co.uk/>Page last updated August 13 17:50 CETCONTENTS
[01] First-half profits at VW jump 150%Volkswagen AG reported Tuesday a first half profit of 282 million marks (dlrs 192 million), up 150 percent from the same period last year because of increased sales and earnings on financial services.The German auto maker predicted its full year sales and earnings will also be higher than last year's - a net profit of 336 million marks (dlrs 228 million) on sales of 88.1 billion marks (dlrs 60 million). The optimistic Volkswagen midyear report said worldwide deliveries were up 13 percent, to 2 million units; group sales increased 14 percent, and operating profit was up 45 percent. Manufacturing costs were also up 13 percent from the same period in 1995. [02] US CPI boosted by higher food and housing costsIncreases in food and housing prices helped push U.S. consumer prices up 0.3% in July, following a modest 0.1% increase the previous month, the Labor Department said.Excluding the volatile enery and food indexes, the core CPI posted a similar 0.3% rise for the month, Labor said. Both numbers came in higher than expected. Analysts polled Monday by Dow Jones News Services had predicted an advance in the overall July CPI of 0.2%. The core CPI was also expected to climb 0.2% for the month. Labor said the food index climbed 0.5 in July, reflecting, in part, another sharp increase in prices for dairy products. Energy prices, however, continued to decline, falling 0.4% during the month. In June, energy prices fell a sharp 2.2% after increasing 9.4% in the proceeding six month period. Labor said the 0.3% increase in the core CPI was due to a jump in shelter costs, which partially resulted fromm a 2.3% rise in hotel prices. Shelter costs were up 0.5% for the month, the largest increase since a rise 0.6% in August, 1994. [03] UK's General Accident post 25% decline in first half profitBritish insurer General Accident has posted a 25 percent decline in first half operating profit to 194 million pounds or 298 million dollars. Profit before tax was up in the period but included a realised investment gain of 156 million pounds.The operating profit fall comes as the company found itself hit by heavy claims due to adverse weather in the first quarter. The decline in profits in the second quarter was less marked and General Accident says that despite the competitive insurance environment they are optimistic about future performance. [04] US condemns Turkish gas deal with IranThe US government has condemned Turkey's 23 billion dollar natural gas pipeline deal with Iran.But Washington has said it isn't certain the deal falls under a new anti- terrorism law. That law calls for sanctions against companies investing in Iranian or Libyan energy projects. U.S. President Bill Clinton signed the law last week that lets Washington penalize non-U.S. companies that invest in the oil and gas industries of Iran and Libya, which Washington accuses of backing international terrorism. [05] UK's electricity regulator proposes tighter controls on National Grid pricingBritian's electricity regulator Offer, has proposed tighter controls on the National Grid's pricing structure. National Grid's regulated revenues would be cut by between 20 and 24 percent. After that, any rate changes would have to be 4 percent lower than the retail price index. The proposals could benefit customers by as much as 1.2 billion pounds over the next four years.[06] WTO to settle US-Japan dispute over photographic filmThe US has asked the World Trade Organisation to settle its dispute with Japan over photographic film. The two countries failed to reach a compromise in talks last month. The request for a WTO ruling comes after an 11-month US investigation into the Japanese market for photographic film.That inquiry began when Kodak complained that Japanese trade barriers favoured Fuji Photo Film and had cost the American company more than five and a half billion dollars in revenue since 1975. [07] Bundesbank blames high budget deficits for driving up interest ratesGermany's Bundesbank says that high budget deficits in western industrialized nations are straining world financial markets and driving interest rates up.In its August monthly report, the central bank forecasts that the German government will exceed its planned 1996 budget deficit, but that M3 money supply growth will move closer to the bank's 4 percent to 7 percent target in the second half. The bank says it will carefully watch M3 developments in the coming months to see if there is room for lower money market rates. [08] LVMH sales hit by strong YenFrench luxury goods group LVMH Moet Hennessy Louis Vuitton SA's first half sales rose slightly to 13.38 billion francs, or $2.6 billion, from 13.34 billion francs a year ago.The company said exchange rate fluctuations, particularly the drop in the value of the Japanese yen, and weak growth in Europe hurt sales. On a constant exchange rate basis, sales rose 3.8%, the company said. [09] UK retail sales slow in JulyGrowth in UK retail sales slowed a bit in July, rising just 5.4 percent on the year after a 6.2 percent annual gain in June.But the British Retail Consortium has said the underlying trend is healthy. Sales growth averaged 6.3 percent from May to July compared with the year earlier, that's up from 4.1 percent in the first four months of the year. The consortium says it expects the strengthening consumer spending to help boost the UK economy as a whole later in the year. The upbeat outlook is likely to add pressure on British Chancellor of the Exchequer Kenneth Clarke to leave interest rates alone for the time being. [10] Parts of Lloyd's of London deal with US members ruled illegalParts of a Lloyd's of London deal with its US members has been ruled illegal by the US Securities and Exchange Commission. In a decision that could derail the insurer's restructuring plans, the SEC has said that US names cannot waive their rights for full disclosure of plans to set up a new reinsurance group.That new company is designed to protect Lloyd's from huge insurance claims dating from before 1993. The British government has rejected the SEC's position. British regulators say the U.S. names agreed to give exclusive jurisdiction over the plan to English courts. [11] De Beers posts 23% gain in earningsSouth Africa's De Beers Consolidated Mines Ltd. (DBRSY), the world's biggest diamond producer and marketer, said its after-tax profit rose 23% to $683 million in the six months ended June 30, compared with the year-ago period. Despite the after-tax figure being broadly in-line with expectations, there are still fears that De Beers will continue to be affected by the leaking of uncut Russian diamonds onto the market.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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