Welcome to The world this week: Business
A summary of the world's main events from The Economist.
Also available at http://www.economist.com


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- - - - - - - - - - - - - - - - - - - - -  IN THE ECONOMIST THIS WEEK -

The al-Qaeda network: eight down, many to go * Enough talk on foreign
aid * European defence * The tobacco settlement * Tony Blair's war *
Messages of hope in America's markets * The trouble with India's
coalition * The unpalatable truth about airlines * The magic of DVDs
* Folk wisdom and the weather *


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THE GOOD OIL

Oil-industry consolidation continues, as PHILLIPS PETROLEUM and CONOCO
announced a $15 billion all-share merger. The new company, to be called
ConocoPhillips, is likely to be the sixth-biggest producer in the
world, based on revenues.

- - - - - See article: Minor majors
http://TheEconomist.s.maildart.net/link_34885_6659355_1_79944192_60299072_1_6f

NORMANDY MINING, of Australia, wooed by rival bids from America's
NEWMONT MINING and South Africa's ANGLOGOLD, rejected AngloGold's
all-share bid. This paves the way for a possible sweetened
counter-offer from AngloGold, the world's second-largest gold producer.

ENRON'S financial turmoil worsened. But the Texan energy giant managed
to put off repayment of some debts until mid-December. Enron's shares
plunged to ten-year lows, casting greater doubt over its plans to be
taken over in a rescue bid by smaller rival DYNEGY.

Three EUROPEAN STEEL MAKERS, Aceralia, Arbed and Usinor, patched up
differences that had threatened their plans to merge, by agreeing to
reduce Usinor's stake in the combined entity. The new company will be
the world's biggest steel maker.

OPTIMISM AT LAST

The DOW JONES INDUSTRIAL AVERAGE has climbed by nearly 20% above its
lows on September 21st, leading some optimists to announce the
emergence of a new bull market. The index came within 23 points of the
10,000 mark before falling back.

- - - - - See article: Messages of hope?
http://TheEconomist.s.maildart.net/link_34884_6659355_1_79944192_60299072_1_6e

Brand names got a boost in Europe. The European Court of Justice handed
a victory to jeans maker LEVI STRAUSS when it ruled that sales of
so-called "parallel imports" from outside the European Union's
jurisdiction were allowed only with the consent of the trademark owner.
The decision ends Levi's three-year battle with Tesco, a British
supermarket chain, that sold cut-price Levi's jeans imported from the
United States.

- - - - - See article: Trouser suit
http://TheEconomist.s.maildart.net/link_34883_6659355_1_79944192_60299072_1_6d

American INDUSTRIAL PRODUCTION fell for the 13th straight month, the
longest continuous decline since the second world war. Other indicators
were more optimistic: the Conference Board's index of leading
indicators rose by 0.3% in October, raising hopes that the widely
expected recession might not last long.

- - - - - See article: Hey, big spender
http://TheEconomist.s.maildart.net/link_34887_6659355_1_79944192_60299072_1_71

SCHMIDTBANK, a 170-year-old family-owned German bank, was rescued from
some decidedly modern investments by a consortium of bigger peers,
including Deutsche Bank, HVB Group, Commerzbank and Dresdner Bank.
Schmidtbank has racked up losses from Consors, an online broker, as
well as from bad loans to Germany's MITTELSTAND companies.

FRENCH CONNECTIONS

Shares in BULL, the troubled French computer company, shot up when its
chairman, Guy de Panafieu, resigned. The French government pledged
EURO100m ($88m) to the company, though the European Commission, which
is strongly opposed to state subsidies, may yet raise objections to the
plan.

The chief of BARCLAYS' French operations was questioned by magistrates
in Paris as part of an investigation into alleged money laundering
between France and Israel. Other banks under scrutiny include BRED, and
Societe Marseillaise de Credit, owned by HSBC.

The European Commission levied a EURO855m ($750) fine, the largest in
its history, against ROCHE and BASF, and six other companies, for
price-fixing in the market for vitamins. Two years ago, both companies
were fined by antitrust regulators in America, and a Roche executive
was jailed for four months.

PERCY BARNEVIK, the Swedish businessman who more or less created ABB,
the Swiss-Swedish engineering giant, is to step down as non-executive
chairman. Mr Barnevik said his departure would give the company's new
management team a clear mandate of their own.

LOVE BOATS

ROYAL CARIBBEAN CRUISES and P&O PRINCESS CRUISES, respectively the
world's second- and third-largest cruise lines, agreed to merge in a
bid to ride out the global economic storm. The deal may frustrate the
ambitions of CARNIVAL CRUISE LINES, the industry leader, which has made
previous overtures to P&O Princess in a failed attempt to expand
its European operations.

- - - - - See article: Rough seas ahead
http://TheEconomist.s.maildart.net/link_34886_6659355_1_79944192_60299072_1_70

KPN, the Dutch telecoms company, said it would issue EURO5 billion
($4.4 billion ) in shares at a 50% discount to the current price, to
help it reduce a massive debt load acquired to purchase
third-generation mobile-phone licences.

A slump in demand has cost jobs at ALCOA, the world's largest aluminium
producer, which announced plans to sack 6,500 workers around the world.
The company is forecasting a 4.7% drop in aluminium demand this year,
the worst in 20 years.

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The world this week: Business is a summary of the world's main events
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