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[IMAGE]	[IMAGE]	[IMAGE]	[IMAGE]	Business this week
				June 7th 2001
				From The Economist print edition  
				
				
				Steel resolve
				
				George Bush announced that America would investigate unfair trade practices 
in the global steel industry with the intent of imposing new anti-dumping 
duties.
				
				See article: George Bush's new plan for the steel industry E+
				
				In response to the United Nations Security Council,s decision on sanctions, 
Iraq cut off its oil exports of about 2.1m barrels a day. Saudi Arabia said 
it would make up the difference.
				
				See article: OPEC needs to keep Iraq from destabilising the world's oil 
marketE+
				
				Economy measures
				
				Consumer confidence in the euro area fell more heavily than expected in May, 
after a fall of business confidence had suggested that, although Europe,s 
economy has weathered the global downturn better than most, it is now 
slowing. But euro-area unemployment fell slightly in April, to 8.3%.
				
				
				
				
				
				
				
				
				
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				The productivity of workers in the United States fell in the first quarter by 
1.2% at an annual rate, according to revised figures. This is the first time 
that labour productivity has fallen since 1995. 
				
				In an effort to stave off fears of a debt default and to buy time for the 
country,s economy to pull out of a three-year recession, Argentina announced 
that it had swapped $29.5 billion of bonds falling due before 2005 for new, 
longer-dated bonds.
				
				See article: Argentina's bond swap buys time at a high price 
				
				Legal matters
				
				A jury in California ordered Philip Morris to pay damages of $3 billion for a 
smoker with lung cancer*by far the biggest such award against a tobacco 
company. Philip Morris will appeal.
				
				See article: Another blow against Big Tobacco E+
				
				Flight details
				
				Orbitz, an online travel agency set up by five American airlines, was 
launched with a bang, and promptly went down after being deluged by 
customers. United, American, Delta, Continental and Northwest expect to take 
a chunk of business from their two main rivals, Expedia and Travelocity.
				
				America,s Federal Aviation Administration outlined a ten-year plan to 
overhaul the country,s airline industry. Greater passenger capacity, more 
runways and new routes will be introduced to reduce delays and improve 
safety. 
				
				See article: How to improve America's airtraffic control E+
				
				General Electric is poised to sell Honeywell International,s regional 
jet-engine business in an effort to persuade the European Commission to 
approve GE,s $40 billion bid for Honeywell.
				
				Shares in Railtrack, operators of Britain,s rail network, dipped 17% in one 
day as the beleaguered company was due to drop out of Britain,s FTSE 100 
share index. It will be replaced in the index by Next, a purveyor of 
mid-market clothing. 
				
				See article: More trouble for Railtrack E+
				
				Swiss bank accounts
				
				Moody,s, a credit-rating agency, downgraded UBS, after the Swiss bank had 
failed to make big advances in onshore private banking for the world,s very 
rich. Domestic banks have grabbed much of this business in their own 
countries.
				
				CSFB was deemed to have broken New Zealand stock-exchange rules in a takeover 
scrap for Montana, a big winemaker. Indian regulators have also banned it 
from stockbroking after a price-fixing investigation. Its now defunct 
Japanese derivatives business broke securities laws and, in America, it is 
undergoing investigations linked to rigged initial public offerings.
				
				Business in Europe
				
				After 12 years of tortuous negotiation, the European Union at last reached a 
provisional agreement on a takeover directive. The directive still has to be 
formally approved, however, and the European Parliament may yet decide to 
block it.
				
				See article: The EU takeover directive may yet pass E+
				
				Germany,s telecoms regulator ruled that companies that have acquired the six 
third-generation mobile-phone licences will be able to share the costs of 
building new infrastructure. The money- saving scheme is likely to be 
challenged by Vodafone and Deutsche Telekom, both incumbents with upgradable 
networks already in place.
				
				See article: Sharing 3G networks 
				
				
				
				
				
				
				
				
				
				EPA
				EPA
				
				
				
				
				
				
				Cadbury Schweppes, a British drinks firm, said it was close to an agreement 
to buy Orangina, a soft-drinks company, from Pernod Ricard, a French 
counterpart, for euro700m ($826m). 
				
				Italy,s government called on EDF, a French power giant, to reduce its 
recently acquired 20% stake in Montedison, Italy,s largest power company, to 
under 2%. Italy objects to EDF,s involvement in its newly opened power 
markets because France has been slow to deregulate its own market. EDF said 
&non8.
				
				Saudi Arabia,s government signed three deals worth $25 billion to develop 
natural gas reserves, two headed by ExxonMobil and one by Royal Dutch/Shell. 
The Saudis hope that the use of foreign private capital will help to revive 
the kingdom,s state-dominated economy which has not grown fast enough.
				
				See article: Investment in Saudi Arabia E+
				
				Martin Ebner,s BZ Group took a 10% voting stake in Investor, a Swedish 
holding company controlled by the Wallenberg family. Mr Ebner wants a share 
buyback, spin-offs and a loosening of the grip of the Wallenbergs on the 
company.
				
				See article: Ebner v the Wallenbergs E+
				
				
				
				
				
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