The U.K. Conservatives widened their poll lead over Gordon Brown’s Labour Party after two weeks of tightening, as 20 economists joined to criticize the government’s deficit-cutting plans as insufficient.
A ComRes Ltd. poll in the Independent on Sunday gave the Conservatives the support of 40 percent of voters, up 2 percentage points, while backing for Labour fell 2 points to 29 percent. The Liberal Democrats gained 2 points to 21 percent. If repeated at a general election, the Conservatives’ edge wouldn’t ensure a Parliamentary majority, according to House of Commons calculations.
Seven polls in the past two weeks showed the Conservative lead shrinking after the economy exited recession. That raised the possibility that Brown could still win the election he must hold by June. In a letter to the Sunday Times today, a group of economists including former Bank of England policy makers Tim Besley, Howard Davies, Charles Goodhart and John Vickers said Brown’s plan to cut a record peacetime deficit lacks urgency.
“There is a risk that a loss of confidence in the U.K.’s economic policy framework will contribute to higher long-term interest rates and/or currency instability, which could undermine the recovery,” the economists wrote. “The next government should set out a detailed plan to reduce the structural budget deficit more quickly than set out in the 2009 pre-budget report.”
Signatories to the letter include Harvard University’s Kenneth Rogoff and Roger Bootle of Capital Economics. While it doesn’t refer to the Conservatives, it supports their calls for faster cuts and more independence in economic forecasting.
In his weekly podcast today, Brown said he will ensure “every last penny” of taxpayer support to banks is repaid, as financial companies prepare to announce bonuses for last year.
“I’m sure you also share my anger with some of the banks,” Brown said. “It is only fair that those who have contributed to the recession and have now benefited from taxpayers’ support give something to society in return.”
To contact the reporters on this story: Robert Hutton in London at rhutton1@bloomberg.net;
Sunday, February 14, 2010
Kuwait’s Zain Receives Offer for African Phone Assets (Update1)
Zain, Kuwait’s biggest phone company, said it received an offer for its African assets, excluding Morocco and Sudan. India’s Bharti Airtel Ltd. made a $10.7 billion offer for the assets, Al-Rai reported yesterday.
The company’s board will meet at 12:30 p.m. today to discuss the offer, Zain said in a statement to the Kuwait bourse today, without providing further details. Trading in the shares will be suspended.
Zain values the assets at about $10 billion, three people familiar with the plans said in June. Vivendi SA, owner of phone companies SFR and Maroc Telecom, said last July it halted talks with Zain about buying a majority stake in its African assets. New Delhi-based Bharti in September called off talks for a proposed $23 billion merger with South Africa’s MTN Group Ltd.
Zain spokesman Ibrahim Adel and Bharti Airtel spokesman Senjam Raj Sekhar declined to comment on the report by Al-Rai, which didn’t say where it got the information.
Kuwait Investment Authority, the emirate’s sovereign wealth fund, will meet today to decide on Bharti Airtel’s offer, Al-Rai reported today. The meeting of the KIA, the largest shareholder in Zain, will be held prior to Zain’s board meeting, the Kuwaiti newspaper said.
Zain appointed Nabil Bin Salama as its chief executive officer on Feb. 11, a month after Kharafi Group, Zain’s second- largest shareholder, said a proposed sale of a controlling stake in the phone company may be delayed. Bin Salama replaced Saad al-Barrak.
Kharafi announced in September it signed a preliminary agreement to sell a 46 percent stake in Zain, valued at $13.7 billion, to a group led by India’s Vavasi Group and Malaysian billionaire Syed Mokhtar Al-Bukhary. At the time, the sellers and buyers pledged to complete the deal in four months.
To contact the reporter on this story: Fiona MacDonald in Kuwait at fmacdonald4@bloomberg.net
The company’s board will meet at 12:30 p.m. today to discuss the offer, Zain said in a statement to the Kuwait bourse today, without providing further details. Trading in the shares will be suspended.
Zain values the assets at about $10 billion, three people familiar with the plans said in June. Vivendi SA, owner of phone companies SFR and Maroc Telecom, said last July it halted talks with Zain about buying a majority stake in its African assets. New Delhi-based Bharti in September called off talks for a proposed $23 billion merger with South Africa’s MTN Group Ltd.
Zain spokesman Ibrahim Adel and Bharti Airtel spokesman Senjam Raj Sekhar declined to comment on the report by Al-Rai, which didn’t say where it got the information.
Kuwait Investment Authority, the emirate’s sovereign wealth fund, will meet today to decide on Bharti Airtel’s offer, Al-Rai reported today. The meeting of the KIA, the largest shareholder in Zain, will be held prior to Zain’s board meeting, the Kuwaiti newspaper said.
Zain appointed Nabil Bin Salama as its chief executive officer on Feb. 11, a month after Kharafi Group, Zain’s second- largest shareholder, said a proposed sale of a controlling stake in the phone company may be delayed. Bin Salama replaced Saad al-Barrak.
Kharafi announced in September it signed a preliminary agreement to sell a 46 percent stake in Zain, valued at $13.7 billion, to a group led by India’s Vavasi Group and Malaysian billionaire Syed Mokhtar Al-Bukhary. At the time, the sellers and buyers pledged to complete the deal in four months.
To contact the reporter on this story: Fiona MacDonald in Kuwait at fmacdonald4@bloomberg.net
American, British Airways Oneworld Alliance Wins U.S. Clearance
AMR Corp.’s American Airlines and British Airways Plc won tentative U.S. government permission to deepen their trans-Atlantic alliance as they counter competition created by the 2008 lifting of flight restrictions between the U.S. and Europe.
American Airlines, the second-largest U.S. carrier, and British Airways, Europe’s third-biggest, may jointly price, market and schedule international flights in their Oneworld alliance without fear of antitrust prosecution, the U.S. Transportation Department said yesterday.
As a condition of approval, American and British Airways must yield four pairs of takeoff and landing slots at London’s Heathrow Airport, Europe’s busiest, to rivals that would provide new U.S. service, the Transportation Department said. That’s a fourth of the 16 pairs of slots the department asked the carriers to give up in 2002, when an earlier request for antitrust immunity fell through.
The decision “beggars belief,” said Richard Branson, president of Virgin Atlantic Airways Ltd., a British Airways competitor that had campaigned against the agreement, in an e- mailed statement. “Four slots pairs is a complete joke, and those responsible for this decision should hang their heads in shame.”
The decision may become final after a 60-day comment period, the Transportation Department said.
‘Valuable Benefits’
“The potential benefits outweigh the potential harm,” Susan Kurland, the department’s assistant secretary for aviation and international affairs, wrote in the decision. “Oneworld could provide the traveling and shipping public with a wide range of valuable benefits, including lower fares.”
Carriers restricted by law from cross-border mergers seek such grants of antitrust immunity to act more like single entities. Iberia Lineas Aereas de Espana SA, Finnair Oyj and Royal Jordanian Airlines are also part of the agreement, which is still being evaluated by the European Union.
American and British Airways also won tentative approval for a separate joint venture with Iberia, according to the Transportation Department order.
Airlines use each others’ routes to expand networks and compete with other large alliances. Oneworld is the third- largest global airline alliance behind Star and SkyTeam.
Airlines Respond
“We are pleased that DOT has agreed that it is in the best interest of the traveling public” for the carriers to have immunity, Will Ris, an American senior vice president, said in a statement. The “order is a key step in the process towards allowing Oneworld alliance members to cooperate more effectively,” British Airways said in a statement.
American Airlines, based in Fort Worth, Texas, and British Airways of London won the immunity after two previous requests in 1997 and 2001 failed. A hurdle to past approval was removed with “Open Skies,” a treaty that ended a four-carrier monopoly on flights between the U.S. and Heathrow.
British Airways, Virgin Atlantic, American Airlines and UAL Corp.’s United Airlines had been the only carriers that could compete on flights between the U.S. and Heathrow, which are popular with business travelers willing to pay high fares. Since 2008, all carriers can pursue the routes.
Justice Department
The U.S. Justice Department advised the transportation agency in December that the American Airlines-British Airways alliance should gain antitrust immunity only if some takeoff and landing slots are surrendered or routes exempted from the partnership.
The European Union said in a statement Feb. 1 that it was evaluating proposed antitrust remedies by the carriers aiming to alleviate concerns that the alliance would hurt competition.
The Transportation Department in July approved antitrust immunity for Continental Airlines Inc. to coordinate flights abroad with United and eight other carriers as part of the Star Alliance, the world’s largest airline group.
Northwest Airlines Corp. and Delta Air Lines Inc., before they merged in 2008, also received antitrust immunity to collaborate with Air France-KLM, Italy’s Alitalia SpA and Ceske Aerolinie AS in SkyTeam, the second-largest alliance.
An American-British Airways alliance with antitrust immunity would be “comparable and more competitive with the product and service offerings of Star Alliance and SkyTeam,” Kurland of the Transportation Department said.
The European Commission said Oct. 2 it sent complaints to American Airlines, British Airways and Iberia concerning their agreement on coordinating operations and marketing. The Brussels-based commission said the deal may break EU rules on “restrictive business practices.”
To contact the reporter on this story: John Hughes in Washington at jhughes5@bloomberg.net
American Airlines, the second-largest U.S. carrier, and British Airways, Europe’s third-biggest, may jointly price, market and schedule international flights in their Oneworld alliance without fear of antitrust prosecution, the U.S. Transportation Department said yesterday.
As a condition of approval, American and British Airways must yield four pairs of takeoff and landing slots at London’s Heathrow Airport, Europe’s busiest, to rivals that would provide new U.S. service, the Transportation Department said. That’s a fourth of the 16 pairs of slots the department asked the carriers to give up in 2002, when an earlier request for antitrust immunity fell through.
The decision “beggars belief,” said Richard Branson, president of Virgin Atlantic Airways Ltd., a British Airways competitor that had campaigned against the agreement, in an e- mailed statement. “Four slots pairs is a complete joke, and those responsible for this decision should hang their heads in shame.”
The decision may become final after a 60-day comment period, the Transportation Department said.
‘Valuable Benefits’
“The potential benefits outweigh the potential harm,” Susan Kurland, the department’s assistant secretary for aviation and international affairs, wrote in the decision. “Oneworld could provide the traveling and shipping public with a wide range of valuable benefits, including lower fares.”
Carriers restricted by law from cross-border mergers seek such grants of antitrust immunity to act more like single entities. Iberia Lineas Aereas de Espana SA, Finnair Oyj and Royal Jordanian Airlines are also part of the agreement, which is still being evaluated by the European Union.
American and British Airways also won tentative approval for a separate joint venture with Iberia, according to the Transportation Department order.
Airlines use each others’ routes to expand networks and compete with other large alliances. Oneworld is the third- largest global airline alliance behind Star and SkyTeam.
Airlines Respond
“We are pleased that DOT has agreed that it is in the best interest of the traveling public” for the carriers to have immunity, Will Ris, an American senior vice president, said in a statement. The “order is a key step in the process towards allowing Oneworld alliance members to cooperate more effectively,” British Airways said in a statement.
American Airlines, based in Fort Worth, Texas, and British Airways of London won the immunity after two previous requests in 1997 and 2001 failed. A hurdle to past approval was removed with “Open Skies,” a treaty that ended a four-carrier monopoly on flights between the U.S. and Heathrow.
British Airways, Virgin Atlantic, American Airlines and UAL Corp.’s United Airlines had been the only carriers that could compete on flights between the U.S. and Heathrow, which are popular with business travelers willing to pay high fares. Since 2008, all carriers can pursue the routes.
Justice Department
The U.S. Justice Department advised the transportation agency in December that the American Airlines-British Airways alliance should gain antitrust immunity only if some takeoff and landing slots are surrendered or routes exempted from the partnership.
The European Union said in a statement Feb. 1 that it was evaluating proposed antitrust remedies by the carriers aiming to alleviate concerns that the alliance would hurt competition.
The Transportation Department in July approved antitrust immunity for Continental Airlines Inc. to coordinate flights abroad with United and eight other carriers as part of the Star Alliance, the world’s largest airline group.
Northwest Airlines Corp. and Delta Air Lines Inc., before they merged in 2008, also received antitrust immunity to collaborate with Air France-KLM, Italy’s Alitalia SpA and Ceske Aerolinie AS in SkyTeam, the second-largest alliance.
An American-British Airways alliance with antitrust immunity would be “comparable and more competitive with the product and service offerings of Star Alliance and SkyTeam,” Kurland of the Transportation Department said.
The European Commission said Oct. 2 it sent complaints to American Airlines, British Airways and Iberia concerning their agreement on coordinating operations and marketing. The Brussels-based commission said the deal may break EU rules on “restrictive business practices.”
To contact the reporter on this story: John Hughes in Washington at jhughes5@bloomberg.net
Production, Home Starts Probably Climbed: U.S. Economy Preview
The manufacturing rebound probably accelerated in January and homebuilding bounced back, adding to evidence the U.S. expansion began the new year without missing a beat, economists said before report this week.
Production climbed 0.8 percent last month, the biggest gain since August, according to the median estimate of 65 economists surveyed by Bloomberg News ahead of a Federal Reserve report Feb. 17. Builders may have broken ground on 580,000 houses at an annual pace, up 4.1 percent from December when colder-than- average temperatures depressed construction.
“The upswing in manufacturing is gaining traction,” said John Herrmann, chief economist at Herrmann Forecasting in Summit, New Jersey. “We’re seeing extremely strong export demand, an inventory cycle that is lifting output and replacement of high-tech products.”
Gains in spending on new equipment will probably be sustained this year as companies aim to edge out the competition and take advantage of the strengthening economy. Combined with growing demand from overseas and efforts to replenish stockpiles following the biggest reduction on record may ensure that factories will keep expanding and hiring in coming months.
Cisco Systems Inc., the biggest maker of networking equipment, is among companies planning to hire. The San Jose, California-based firm this month predicted sales will accelerate and said it will boost its workforce by as much as 3,000 as customers resume spending to deal with surging data traffic.
‘Better’ Momentum
“Almost every country is saying their momentum is better than it was before, and almost every business is saying it’s more optimistic,” Chief Executive Officer John Chambers, 60, said in a Feb. 4 interview. “It shows a capital spending trend that’s hard to deny, on a global basis.”
Eaton Corp., the maker of hydraulics and automotive valves, is seeing demand increase in its auto and trucks unit, as is typical early in an economic cycle, Chief Executive Officer Sandy Cutler said last week in an interview from company headquarters in Cleveland.
The company forecasts it will capture about $1 billion in stimulus funds as the federal government rebuilds housing on military bases and aims to improve efficiency in federal buildings. The Obama administration’s $787 billion stimulus program is boosting infrastructure and green energy spending, and the government says it has funded as many as 2 million jobs.
The Standard & Poor’s Supercomposite Machinery Index, which includes companies such as Eaton and Caterpillar Inc., has dropped 1.4 percent so far this year, outperforming the broader S&P 500 Index, which is down 3.6 percent.
Factory Surveys
Private surveys have also signaled manufacturing is recovering. The Institute for Supply Management’s factory index in January showed the fastest pace of expansion since 2004.
Efforts to stabilize inventories accounted for 3.4 percentage points of the fourth quarter’s 5.7 percent pace of economic growth, according to figures from the Commerce Department.
Factories are also benefiting from rising exports as global demand recovers after the worst slump since World War II ended. A 10 percent drop in the value of the dollar from a four-year high on March 3 against its major trading partners is making American goods more competitive. Exports have risen for eight consecutive months since reaching a three-year low in April.
A report from the Commerce Department on Feb. 17 may show housing starts rose last month after dropping 4 percent in December. The extension in November of a first-time buyers’ tax credit and its expansion to include current homeowners may push housing demand up in the first half of the year.
Improving Outlook
In a sign the recovery has staying power, the Conference Board’s index of leading economic indicators for January may show a gain of 0.5 percent, according to the median estimate of economists surveyed before the Feb. 18 report. It would be the 10th consecutive increase in the gauge of the economy’s performance over the next three to six months.
Reflecting slowing job losses, the Labor Department may report on Feb. 18 that initial jobless claims last week fell to 430,000, the fewest since July 2008, from 440,000 the prior week, according to forecasts.
Consumer prices, due Feb. 19, may show the cost of living rose 0.3 percent in January, according to the median of economists’ forecasts, following a 0.1 percent gain the prior month. Excluding food and fuel, prices probably rose 0.1 percent for a second month, the Labor Department’s report may show.
Wholesale prices, due Feb. 18, probably rose 0.8 percent, while prices paid for imported goods, released the day before, may have increased 1 percent, according to the median estimate of economists surveyed.
Reports from the New York Fed on Feb. 16 and the Philadelphia Fed two days later may show factories in those regions expanded at a faster pace this month, according to economists surveyed.
Finally, the Fed on Feb. 17 will release the minutes of its Jan. 27 monetary policy meeting.
Bloomberg Survey
================================================================
Release Period Prior Median
Indicator Date Value Forecast
================================================================
Federal Budget $ Blns 2/17 Jan. -63.5 -46.0
Empire Manu. Index 2/16 Feb. 15.9 18.0
Total TICS $ Blns 2/16 Dec. 26.6 50.0
Net Long Term TICS $ Blns 2/16 Dec. 126.8 50.0
NAHB Housing Index 2/16 Feb. 15 16
Housing Starts ,000’s 2/17 Jan. 557 580
Housing Starts MOM% 2/17 Jan. -4.0% 4.1%
Building Permits ,000’s 2/17 Jan. 653 615
Building Permits MOM% 2/17 Jan. 10.9% -5.8%
Import Prices MOM% 2/17 Jan. 0.0% 1.0%
Import Prices YOY% 2/17 Jan. 8.6% 10.8%
Ind. Prod. MOM% 2/17 Jan. 0.6% 0.8%
Cap. Util. % 2/17 Jan. 72.0% 72.6%
Initial Claims ,000’s 2/18 6-Feb 440 430
Cont. Claims ,000’s 2/18 30-Jan 4538 4500
PPI MOM% 2/18 Jan. 0.2% 0.8%
Core PPI MOM% 2/18 Jan. 0.0% 0.1%
PPI YOY% 2/18 Jan. 4.4% 4.4%
Core PPI YOY% 2/18 Jan. 0.9% 0.8%
LEI MOM% 2/18 Jan. 1.1% 0.5%
Philly Fed Index 2/18 Feb. 15.2 17.0
CPI MOM% 2/19 Jan. 0.1% 0.3%
Core CPI MOM% 2/19 Jan. 0.1% 0.1%
CPI YOY% 2/19 Jan. 2.7% 2.8%
Core CPI YOY% 2/19 Jan. 1.8% 1.8%
Core CPI SA Index 2/19 Jan. 220.774 221.158
CPI NSA Index 2/19 Jan. 215.949 217.050
================================================================
To contact the reporter on this story: Bob Willis in Washington bwillis@bloomberg.net.
Production climbed 0.8 percent last month, the biggest gain since August, according to the median estimate of 65 economists surveyed by Bloomberg News ahead of a Federal Reserve report Feb. 17. Builders may have broken ground on 580,000 houses at an annual pace, up 4.1 percent from December when colder-than- average temperatures depressed construction.
“The upswing in manufacturing is gaining traction,” said John Herrmann, chief economist at Herrmann Forecasting in Summit, New Jersey. “We’re seeing extremely strong export demand, an inventory cycle that is lifting output and replacement of high-tech products.”
Gains in spending on new equipment will probably be sustained this year as companies aim to edge out the competition and take advantage of the strengthening economy. Combined with growing demand from overseas and efforts to replenish stockpiles following the biggest reduction on record may ensure that factories will keep expanding and hiring in coming months.
Cisco Systems Inc., the biggest maker of networking equipment, is among companies planning to hire. The San Jose, California-based firm this month predicted sales will accelerate and said it will boost its workforce by as much as 3,000 as customers resume spending to deal with surging data traffic.
‘Better’ Momentum
“Almost every country is saying their momentum is better than it was before, and almost every business is saying it’s more optimistic,” Chief Executive Officer John Chambers, 60, said in a Feb. 4 interview. “It shows a capital spending trend that’s hard to deny, on a global basis.”
Eaton Corp., the maker of hydraulics and automotive valves, is seeing demand increase in its auto and trucks unit, as is typical early in an economic cycle, Chief Executive Officer Sandy Cutler said last week in an interview from company headquarters in Cleveland.
The company forecasts it will capture about $1 billion in stimulus funds as the federal government rebuilds housing on military bases and aims to improve efficiency in federal buildings. The Obama administration’s $787 billion stimulus program is boosting infrastructure and green energy spending, and the government says it has funded as many as 2 million jobs.
The Standard & Poor’s Supercomposite Machinery Index, which includes companies such as Eaton and Caterpillar Inc., has dropped 1.4 percent so far this year, outperforming the broader S&P 500 Index, which is down 3.6 percent.
Factory Surveys
Private surveys have also signaled manufacturing is recovering. The Institute for Supply Management’s factory index in January showed the fastest pace of expansion since 2004.
Efforts to stabilize inventories accounted for 3.4 percentage points of the fourth quarter’s 5.7 percent pace of economic growth, according to figures from the Commerce Department.
Factories are also benefiting from rising exports as global demand recovers after the worst slump since World War II ended. A 10 percent drop in the value of the dollar from a four-year high on March 3 against its major trading partners is making American goods more competitive. Exports have risen for eight consecutive months since reaching a three-year low in April.
A report from the Commerce Department on Feb. 17 may show housing starts rose last month after dropping 4 percent in December. The extension in November of a first-time buyers’ tax credit and its expansion to include current homeowners may push housing demand up in the first half of the year.
Improving Outlook
In a sign the recovery has staying power, the Conference Board’s index of leading economic indicators for January may show a gain of 0.5 percent, according to the median estimate of economists surveyed before the Feb. 18 report. It would be the 10th consecutive increase in the gauge of the economy’s performance over the next three to six months.
Reflecting slowing job losses, the Labor Department may report on Feb. 18 that initial jobless claims last week fell to 430,000, the fewest since July 2008, from 440,000 the prior week, according to forecasts.
Consumer prices, due Feb. 19, may show the cost of living rose 0.3 percent in January, according to the median of economists’ forecasts, following a 0.1 percent gain the prior month. Excluding food and fuel, prices probably rose 0.1 percent for a second month, the Labor Department’s report may show.
Wholesale prices, due Feb. 18, probably rose 0.8 percent, while prices paid for imported goods, released the day before, may have increased 1 percent, according to the median estimate of economists surveyed.
Reports from the New York Fed on Feb. 16 and the Philadelphia Fed two days later may show factories in those regions expanded at a faster pace this month, according to economists surveyed.
Finally, the Fed on Feb. 17 will release the minutes of its Jan. 27 monetary policy meeting.
Bloomberg Survey
================================================================
Release Period Prior Median
Indicator Date Value Forecast
================================================================
Federal Budget $ Blns 2/17 Jan. -63.5 -46.0
Empire Manu. Index 2/16 Feb. 15.9 18.0
Total TICS $ Blns 2/16 Dec. 26.6 50.0
Net Long Term TICS $ Blns 2/16 Dec. 126.8 50.0
NAHB Housing Index 2/16 Feb. 15 16
Housing Starts ,000’s 2/17 Jan. 557 580
Housing Starts MOM% 2/17 Jan. -4.0% 4.1%
Building Permits ,000’s 2/17 Jan. 653 615
Building Permits MOM% 2/17 Jan. 10.9% -5.8%
Import Prices MOM% 2/17 Jan. 0.0% 1.0%
Import Prices YOY% 2/17 Jan. 8.6% 10.8%
Ind. Prod. MOM% 2/17 Jan. 0.6% 0.8%
Cap. Util. % 2/17 Jan. 72.0% 72.6%
Initial Claims ,000’s 2/18 6-Feb 440 430
Cont. Claims ,000’s 2/18 30-Jan 4538 4500
PPI MOM% 2/18 Jan. 0.2% 0.8%
Core PPI MOM% 2/18 Jan. 0.0% 0.1%
PPI YOY% 2/18 Jan. 4.4% 4.4%
Core PPI YOY% 2/18 Jan. 0.9% 0.8%
LEI MOM% 2/18 Jan. 1.1% 0.5%
Philly Fed Index 2/18 Feb. 15.2 17.0
CPI MOM% 2/19 Jan. 0.1% 0.3%
Core CPI MOM% 2/19 Jan. 0.1% 0.1%
CPI YOY% 2/19 Jan. 2.7% 2.8%
Core CPI YOY% 2/19 Jan. 1.8% 1.8%
Core CPI SA Index 2/19 Jan. 220.774 221.158
CPI NSA Index 2/19 Jan. 215.949 217.050
================================================================
To contact the reporter on this story: Bob Willis in Washington bwillis@bloomberg.net.
Japan to Start Sales Tax Debate Next Month, Kan Says (Update1)
Japanese Finance Minister Naoto Kan said the government will start debate on overhauling the sales tax next month, indicating it may consider increasing the 5 percent levy to help repair the country’s finances.
“We will start that discussion properly in March at the government tax panel,” Kan said on a Fuji Television program today. The group will also discuss corporate, income and environment taxes, he said.
Prime Minister Yukio Hatoyama has promised not to raise the sales tax for four years even though the public debt approaches twice the size of gross domestic product. Kan had said the government will debate tax increases only after it exhausts measures to remove wasteful spending.
Standard & Poor’s last month cut the outlook for Japan’s AA sovereign credit rating, citing the government’s failure to come up with a plan to contain the deficit.
With an upper house election scheduled in July, the Democratic Party of Japan-led government may have difficulty introducing policies that could weigh on an economy that’s recovering from its worst postwar recession. The Hatoyama Cabinet’s support fell to 35.7 percent this month from 47.1 percent in January, a Jiji Press survey showed Feb. 12.
The government may also set up a venue for discussing tax issues with the opposition Liberal Democratic Party, Kan said today.
Family Allowances
He also said the government will “make efforts” to meet the DPJ’s election pledge to double child-care allowances for households in the year starting April 2011. Monthly handouts of 13,000 yen ($145) have already been budgeted for the year starting this April.
Naoki Minezaki and Yoshihiko Noda, Japan’s vice finance ministers, have said since last month that it may be difficult to increase the benefits because of a lack of tax revenue.
“As a basic policy, we must make efforts to meet our promise,” Kan said. “Policy makers in charge of the issue must be careful about their remarks,” he said, adding he gave warnings to his deputies.
The government will tread a “narrow path” of providing needed stimulus for economic growth while containing the public debt and preventing bond yields from surging, Kan said. Japan may need to provide some fiscal stimulus to support economic growth in the budget for the year starting April 2011, the finance minister added.
Swelling Debt
The Finance Ministry forecasts public debt will swell to 973 trillion yen ($10.8 trillion) by March 2011, exacerbating a debt load that’s already the world’s largest. Tax collections are set to fall below the amount of bonds sold this fiscal year for the first time in 63 years.
Speaking in a separate television program today, Kouhei Otsuka, deputy financial services minister, said the government will judge whether to implement a new round of fiscal spending by assessing the economy’s results for the first quarter.
“Currently I don’t see such a need,” Otsuka said on TV Asahi. He said the government may be able to judge by April how gross domestic product will perform in the three months ending March 31.
Figures to be released tomorrow will probably show that economic growth accelerated in the fourth quarter of 2009, led by a recovery in exports. GDP expanded at a 3.5 percent annual rate in the three months ended Dec. 31, the fastest pace in almost two years, according to the median forecast of 23 economists surveyed by Bloomberg News.
To contact the reporters on this story: Mayumi Otsuma in Tokyo at motsuma@bloomberg.net
“We will start that discussion properly in March at the government tax panel,” Kan said on a Fuji Television program today. The group will also discuss corporate, income and environment taxes, he said.
Prime Minister Yukio Hatoyama has promised not to raise the sales tax for four years even though the public debt approaches twice the size of gross domestic product. Kan had said the government will debate tax increases only after it exhausts measures to remove wasteful spending.
Standard & Poor’s last month cut the outlook for Japan’s AA sovereign credit rating, citing the government’s failure to come up with a plan to contain the deficit.
With an upper house election scheduled in July, the Democratic Party of Japan-led government may have difficulty introducing policies that could weigh on an economy that’s recovering from its worst postwar recession. The Hatoyama Cabinet’s support fell to 35.7 percent this month from 47.1 percent in January, a Jiji Press survey showed Feb. 12.
The government may also set up a venue for discussing tax issues with the opposition Liberal Democratic Party, Kan said today.
Family Allowances
He also said the government will “make efforts” to meet the DPJ’s election pledge to double child-care allowances for households in the year starting April 2011. Monthly handouts of 13,000 yen ($145) have already been budgeted for the year starting this April.
Naoki Minezaki and Yoshihiko Noda, Japan’s vice finance ministers, have said since last month that it may be difficult to increase the benefits because of a lack of tax revenue.
“As a basic policy, we must make efforts to meet our promise,” Kan said. “Policy makers in charge of the issue must be careful about their remarks,” he said, adding he gave warnings to his deputies.
The government will tread a “narrow path” of providing needed stimulus for economic growth while containing the public debt and preventing bond yields from surging, Kan said. Japan may need to provide some fiscal stimulus to support economic growth in the budget for the year starting April 2011, the finance minister added.
Swelling Debt
The Finance Ministry forecasts public debt will swell to 973 trillion yen ($10.8 trillion) by March 2011, exacerbating a debt load that’s already the world’s largest. Tax collections are set to fall below the amount of bonds sold this fiscal year for the first time in 63 years.
Speaking in a separate television program today, Kouhei Otsuka, deputy financial services minister, said the government will judge whether to implement a new round of fiscal spending by assessing the economy’s results for the first quarter.
“Currently I don’t see such a need,” Otsuka said on TV Asahi. He said the government may be able to judge by April how gross domestic product will perform in the three months ending March 31.
Figures to be released tomorrow will probably show that economic growth accelerated in the fourth quarter of 2009, led by a recovery in exports. GDP expanded at a 3.5 percent annual rate in the three months ended Dec. 31, the fastest pace in almost two years, according to the median forecast of 23 economists surveyed by Bloomberg News.
To contact the reporters on this story: Mayumi Otsuma in Tokyo at motsuma@bloomberg.net
Rio Tinto Says Planning to Build China Relationship (Update1)
Rio Tinto Group, the world’s third- largest mining company, said it planned to build its relationship with China, even as four of its employees face charges of obtaining trade secrets and bribery in the country.
“We would like to build relationships with China and I think that can take place over a number of different areas,” Rio Tinto Chief Financial Officer Guy Elliott said in an interview broadcast on Sky News Business Channel today.
Rio Tinto has become more dependent on Chinese business as the country’s demand for commodities continues to rise and its economy expands. China became the company’s largest market last year and accounted for almost a quarter of its revenue, Chief Executive Officer Tom Albanese said last week. The four employees were formally arrested last August.
“This issue will pass, and the relationship between China and Rio is a much more longer-term story,” said Mark Pervan, senior commodity strategist at Australia & New Zealand Banking Group in Melbourne.
Prosecutors in China have filed the case against the Rio employees with the Shanghai No. 1 Intermediate People’s Court, Tao Wuping, a lawyer for one of the detainees, Liu Caikui, said Feb. 11. The proceedings won’t be made public because they concern commercial secrets, he said.
Stern Hu, the head of Rio’s iron ore unit in China, Liu, Wang Yong and Ge Minqiang had “acted properly and ethically, the company said after their arrest.
Judicial Process
“Our concern is with the individuals themselves and it would be inappropriate of me to comment on what is now a judicial process,” Elliott said. The company viewed the matter “with great concern,” he said.
London-based Rio’s sales to China overtook North America and Europe in 2009, reaching 24.3 percent of the total from 18.8 percent a year earlier, it said Feb. 11 when it posted financial results. The proportion of sales to China, the world’s biggest iron-ore consumer, has doubled since 2004.
“It is therefore in both the interests of Chinese companies and in Rio Tinto’s interests to find a way of continuing and hopefully expanding the trade that we have between us,” Elliott said. Aluminum Corp. of China, known as Chinalco, is Rio’s largest shareholder.
Net income was $2.4 billion in the six months ended Dec. 31, from a loss of $3.3 billion a year earlier, the company said.
Rio Tinto named Ian Bauert as managing director for China on Feb. 5. Bauert, a fluent Mandarin speaker who has worked with Rio for more than 30 years, will be based in Shanghai, according to the company.
Bauert should “very much contribute” to the company’s building of bridges with China, Elliott said.
To contact the reporter on this story: Wendy Pugh in Melbourne wpugh@bloomberg.net.
“We would like to build relationships with China and I think that can take place over a number of different areas,” Rio Tinto Chief Financial Officer Guy Elliott said in an interview broadcast on Sky News Business Channel today.
Rio Tinto has become more dependent on Chinese business as the country’s demand for commodities continues to rise and its economy expands. China became the company’s largest market last year and accounted for almost a quarter of its revenue, Chief Executive Officer Tom Albanese said last week. The four employees were formally arrested last August.
“This issue will pass, and the relationship between China and Rio is a much more longer-term story,” said Mark Pervan, senior commodity strategist at Australia & New Zealand Banking Group in Melbourne.
Prosecutors in China have filed the case against the Rio employees with the Shanghai No. 1 Intermediate People’s Court, Tao Wuping, a lawyer for one of the detainees, Liu Caikui, said Feb. 11. The proceedings won’t be made public because they concern commercial secrets, he said.
Stern Hu, the head of Rio’s iron ore unit in China, Liu, Wang Yong and Ge Minqiang had “acted properly and ethically, the company said after their arrest.
Judicial Process
“Our concern is with the individuals themselves and it would be inappropriate of me to comment on what is now a judicial process,” Elliott said. The company viewed the matter “with great concern,” he said.
London-based Rio’s sales to China overtook North America and Europe in 2009, reaching 24.3 percent of the total from 18.8 percent a year earlier, it said Feb. 11 when it posted financial results. The proportion of sales to China, the world’s biggest iron-ore consumer, has doubled since 2004.
“It is therefore in both the interests of Chinese companies and in Rio Tinto’s interests to find a way of continuing and hopefully expanding the trade that we have between us,” Elliott said. Aluminum Corp. of China, known as Chinalco, is Rio’s largest shareholder.
Net income was $2.4 billion in the six months ended Dec. 31, from a loss of $3.3 billion a year earlier, the company said.
Rio Tinto named Ian Bauert as managing director for China on Feb. 5. Bauert, a fluent Mandarin speaker who has worked with Rio for more than 30 years, will be based in Shanghai, according to the company.
Bauert should “very much contribute” to the company’s building of bridges with China, Elliott said.
To contact the reporter on this story: Wendy Pugh in Melbourne wpugh@bloomberg.net.
BHP Says Iron Ore Spot Surge Points to Contract Level (Update1)
BHP Billiton Ltd., the world’s largest mining company, said spot iron ore prices are about double year-ago benchmark values, pointing to the level of increase required for 2010 contracts.
“The market price is what the benchmark price is supposed to be,” BHP Chief Executive Officer Marius Kloppers said on Australian Broadcasting Corp.’s Inside Business program. “I don’t know what the price settlement will be when we get to that point. What I do know is that today’s price is almost double what last year’s benchmark -- which was set in the depths of the financial crisis -- was,” he said.
Talks to set 2010 prices have begun between mills and suppliers including BHP and Rio Tinto Group, the China Iron & Steel Association said last week. Analysts including Nomura Holdings Inc. and Bank of America have forecast producers, which are aiming to reduce reliance on the benchmark system, may win increases in annual negotiations of as much as 50 percent.
“The only way to avoid the friction of a benchmark price negotiation that goes on for six months is to have something which is very clear and you can observe it every day,” Kloppers said.
BHP and some Chinese steelmakers have agreed to a provisional 40 percent increase in contract iron-ore prices, UC361.com analyst Hu Kai said last week, citing the mills.
Samantha Evans, spokeswoman for Melbourne-based BHP Billiton, declined to comment when contacted by Bloomberg News on Feb. 12.
Contract Prices
A 40 percent gain in contract prices would see the price of Australian ore rise to about $84 a metric ton, from about $60 a ton. The cash price, including freight and insurance, was at $128.20 on Feb. 12, according to The Steel Index.
Steel prices have lagged behind the gains in spot iron ore values, said Mark Pervan, senior commodity strategist at Australia & New Zealand Banking Group Ltd. He forecast a 40 percent gain with “upside risk.”
“Steel prices haven’t been as buoyant as the spot iron ore market,” he said by phone today. “You have to take both into account.”
Smaller mills are typically more active in the spot market, compared with the larger companies that sign annual contracts with producers such as BHP and Rio Tinto, he said.
BHP Billiton will increase capital spending 63 percent next year to meet surging demand in China and India, the company said in a results presentation on Feb. 10. The commodities producer also has the capacity to make “opportunistic acquisitions,” Kloppers said Feb. 10.
Capital Spending
Capital spending on projects including iron ore mines and oil fields will rise to $20.8 billion from $12.8 billion this year, the Melbourne-based company said after reporting that first-half net income more than doubled.
Net income was $6.1 billion, or 109.8 cents a share, in the six months ended Dec. 31, from $2.6 billion, or 47 cents a share, a year earlier, BHP said. That compared with the $5.5 billion median estimate of eight analysts.
Economic growth in China, the world’s largest consumer of industrial metals, accelerated to a 10.7 percent year-on-year pace in the last three months of 2009.
The trend of rising steel production in China was forecast to continue even after its rapid expansion, Kloppers said today.
“We did a bottom-up analysis, how many buildings, what is the steel intensity and so on and we think that this trend is going to go on for the 20 years that we’ve forecast,” he said.
To contact the reporter on this story: Wendy Pugh in Melbourne wpugh@bloomberg.net.
“The market price is what the benchmark price is supposed to be,” BHP Chief Executive Officer Marius Kloppers said on Australian Broadcasting Corp.’s Inside Business program. “I don’t know what the price settlement will be when we get to that point. What I do know is that today’s price is almost double what last year’s benchmark -- which was set in the depths of the financial crisis -- was,” he said.
Talks to set 2010 prices have begun between mills and suppliers including BHP and Rio Tinto Group, the China Iron & Steel Association said last week. Analysts including Nomura Holdings Inc. and Bank of America have forecast producers, which are aiming to reduce reliance on the benchmark system, may win increases in annual negotiations of as much as 50 percent.
“The only way to avoid the friction of a benchmark price negotiation that goes on for six months is to have something which is very clear and you can observe it every day,” Kloppers said.
BHP and some Chinese steelmakers have agreed to a provisional 40 percent increase in contract iron-ore prices, UC361.com analyst Hu Kai said last week, citing the mills.
Samantha Evans, spokeswoman for Melbourne-based BHP Billiton, declined to comment when contacted by Bloomberg News on Feb. 12.
Contract Prices
A 40 percent gain in contract prices would see the price of Australian ore rise to about $84 a metric ton, from about $60 a ton. The cash price, including freight and insurance, was at $128.20 on Feb. 12, according to The Steel Index.
Steel prices have lagged behind the gains in spot iron ore values, said Mark Pervan, senior commodity strategist at Australia & New Zealand Banking Group Ltd. He forecast a 40 percent gain with “upside risk.”
“Steel prices haven’t been as buoyant as the spot iron ore market,” he said by phone today. “You have to take both into account.”
Smaller mills are typically more active in the spot market, compared with the larger companies that sign annual contracts with producers such as BHP and Rio Tinto, he said.
BHP Billiton will increase capital spending 63 percent next year to meet surging demand in China and India, the company said in a results presentation on Feb. 10. The commodities producer also has the capacity to make “opportunistic acquisitions,” Kloppers said Feb. 10.
Capital Spending
Capital spending on projects including iron ore mines and oil fields will rise to $20.8 billion from $12.8 billion this year, the Melbourne-based company said after reporting that first-half net income more than doubled.
Net income was $6.1 billion, or 109.8 cents a share, in the six months ended Dec. 31, from $2.6 billion, or 47 cents a share, a year earlier, BHP said. That compared with the $5.5 billion median estimate of eight analysts.
Economic growth in China, the world’s largest consumer of industrial metals, accelerated to a 10.7 percent year-on-year pace in the last three months of 2009.
The trend of rising steel production in China was forecast to continue even after its rapid expansion, Kloppers said today.
“We did a bottom-up analysis, how many buildings, what is the steel intensity and so on and we think that this trend is going to go on for the 20 years that we’ve forecast,” he said.
To contact the reporter on this story: Wendy Pugh in Melbourne wpugh@bloomberg.net.
Brown Says U.K. Banks Will Repay ‘Every Last Penny’ of Aid
U.K. Prime Minister Gordon Brown said he will insure “every last penny” of taxpayer support to British banks is paid back, as financial companies prepare to announce employee pay and bonuses for last year.
“I’m sure you also share my anger with some of the banks,” Brown said today in a weekly podcast. “It is only fair that those who have contributed to the recession and have now benefited from taxpayers’ support give something to society in return.”
The British leader said he will seek to end tax avoidance by financial companies and hold talks with the European Council this week to reach an agreement on a global bank levy. Banks also face tough new rules to defer their bonuses and claw them back if they aren’t deserved, Brown said.
The government is seeking greater control over bonuses paid to bankers amid taxpayer anger about the industry’s bailout during the financial crisis. Banks including 84 percent government-owned Royal Bank of Scotland Group Plc and Barclays Plc, which didn’t receive a direct government support, will announce their 2009 employee compensation in the next weeks.
The proceeds of a 50 percent tax on bonuses, announced last year, “will go towards alleviating youth unemployment and cutting the deficit,” Brown said.
The prime minister’s comments are similar to those of U.S. President Barack Obama, who told leaders of the nation’s biggest banks on Dec. 14 that he’s “determined to recover every last dime for the American taxpayer.”
Brown must hold a general election by June. His Labour party trails the opposition Conservative party in polls.
To contact the reporter on this story: Jon Menon in London at Jmenon1@bloomberg.net
“I’m sure you also share my anger with some of the banks,” Brown said today in a weekly podcast. “It is only fair that those who have contributed to the recession and have now benefited from taxpayers’ support give something to society in return.”
The British leader said he will seek to end tax avoidance by financial companies and hold talks with the European Council this week to reach an agreement on a global bank levy. Banks also face tough new rules to defer their bonuses and claw them back if they aren’t deserved, Brown said.
The government is seeking greater control over bonuses paid to bankers amid taxpayer anger about the industry’s bailout during the financial crisis. Banks including 84 percent government-owned Royal Bank of Scotland Group Plc and Barclays Plc, which didn’t receive a direct government support, will announce their 2009 employee compensation in the next weeks.
The proceeds of a 50 percent tax on bonuses, announced last year, “will go towards alleviating youth unemployment and cutting the deficit,” Brown said.
The prime minister’s comments are similar to those of U.S. President Barack Obama, who told leaders of the nation’s biggest banks on Dec. 14 that he’s “determined to recover every last dime for the American taxpayer.”
Brown must hold a general election by June. His Labour party trails the opposition Conservative party in polls.
To contact the reporter on this story: Jon Menon in London at Jmenon1@bloomberg.net
Toyota Says It May Provide Brake-Override System to More Models
Toyota Motor Corp., the world’s largest automaker, said in a letter to a U.S. lawmaker this week it may provide brake-override systems to more models to prevent sudden acceleration.
The auto maker “will consider expanding brake override capability to additional models,” said Theodore M. Hester, a partner at King & Spalding LLP in Washington, in a Feb. 9 letter addressed to U.S. Representative Edolphus Towns.
Hester didn’t specify any make or quantity of models that could be involved in the letter to Towns, a New York Democrat and chairman of the House Committee on Oversight and Government Reform.
Toyota suspended some sales while working to correct defects with about 8 million vehicles globally. The recalls involving sudden acceleration focus on floor mats that snagged the accelerator pedal and pedals that tended to stick, according to the company.
Brake-override systems disengage the engine when the brake and throttle are both depressed, and are used on many autos that use computers instead of cables to control acceleration. They work in tandem with the electronic throttle control technology that was unveiled in the late 1980s and are becoming an industry standard.
The systems will be installed as standard equipment in most Toyota and Lexus vehicles by year-end, Hester said in the letter.
At least three U.S. congressional committees plan hearings on the Toyota recalls.
Separately, Toyota said yesterday it’s recalling a “limited number” of Tacoma pickups because of cracks in drive- shaft components.
To contact the reporter on this story: Mina Kawai in New York at minkawai@bloomberg.net.
The auto maker “will consider expanding brake override capability to additional models,” said Theodore M. Hester, a partner at King & Spalding LLP in Washington, in a Feb. 9 letter addressed to U.S. Representative Edolphus Towns.
Hester didn’t specify any make or quantity of models that could be involved in the letter to Towns, a New York Democrat and chairman of the House Committee on Oversight and Government Reform.
Toyota suspended some sales while working to correct defects with about 8 million vehicles globally. The recalls involving sudden acceleration focus on floor mats that snagged the accelerator pedal and pedals that tended to stick, according to the company.
Brake-override systems disengage the engine when the brake and throttle are both depressed, and are used on many autos that use computers instead of cables to control acceleration. They work in tandem with the electronic throttle control technology that was unveiled in the late 1980s and are becoming an industry standard.
The systems will be installed as standard equipment in most Toyota and Lexus vehicles by year-end, Hester said in the letter.
At least three U.S. congressional committees plan hearings on the Toyota recalls.
Separately, Toyota said yesterday it’s recalling a “limited number” of Tacoma pickups because of cracks in drive- shaft components.
To contact the reporter on this story: Mina Kawai in New York at minkawai@bloomberg.net.
KL shares may trade sideways next week
Malaysian shares will likely move sideways next week on lack of market participants due to the long Chinese New Year holiday break, dealers said.
They said investors would take a longer vacation before returning next Wednesday for three trading days.
"Some investors might ignore the last three trading days, unless there is a strong catalyst to lift the market," a dealer said.
An analyst from a local investment bank expects the local market, which is on a temporary correction rally, to head downward after its run-up from March last year.
"I think, trading will be thin and we maintain a bearish view in the near-term," the analyst said.
However, investors will continue to be attracted by positive economic news amid rising optimism of a recovery in the global economy.
"Market concerns will be on local corporate earning results for 2009, which is expected to be better than 2008," the analyst explained.
For the week just ended, the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) rose 5.49 points to 1,253.39 from 1,247.9 last Friday.
The Finance Index gained 3.31 points to 10,946.04 from 10,942.73 last Friday.
The Plantation Index increased 55.45 points to 6,204.5 from 6,149.05 last Friday while the Industrial Index was 12.39 points lower at 2,588.07 compared to 2,575.68 last Friday.
The FBM Emas Index went up 30.8 points to 8,436.33 from 8,405.53 last Friday.
The FBM Top 100 declined 36.92 points to 8,210.23 from 8,173.31 last Friday while the FBM ACE Index lost 14.34 points to 4,328.97 from 4,314.63 previously.
Total turnover rose 3.365 billion shares valued at RM5.685 billion from 3.332 billion shares worth RM4.99 billion last week.
Volume on the Main Market increased to 2.875 billion shares valued at RM5.579 billion from 2.781 billion shares worth RM4.896 billion last week.
Call warrants volume went up to 153.079 million units valued at RM26.959 million from 137.595 million units worth RM22.408 million last week.
The ACE Market volume however, fell to 226.190 million shares valued at RM48.175 million from 336.747 million shares worth RM49.165 million last week. -- Bernama
They said investors would take a longer vacation before returning next Wednesday for three trading days.
"Some investors might ignore the last three trading days, unless there is a strong catalyst to lift the market," a dealer said.
An analyst from a local investment bank expects the local market, which is on a temporary correction rally, to head downward after its run-up from March last year.
"I think, trading will be thin and we maintain a bearish view in the near-term," the analyst said.
However, investors will continue to be attracted by positive economic news amid rising optimism of a recovery in the global economy.
"Market concerns will be on local corporate earning results for 2009, which is expected to be better than 2008," the analyst explained.
For the week just ended, the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) rose 5.49 points to 1,253.39 from 1,247.9 last Friday.
The Finance Index gained 3.31 points to 10,946.04 from 10,942.73 last Friday.
The Plantation Index increased 55.45 points to 6,204.5 from 6,149.05 last Friday while the Industrial Index was 12.39 points lower at 2,588.07 compared to 2,575.68 last Friday.
The FBM Emas Index went up 30.8 points to 8,436.33 from 8,405.53 last Friday.
The FBM Top 100 declined 36.92 points to 8,210.23 from 8,173.31 last Friday while the FBM ACE Index lost 14.34 points to 4,328.97 from 4,314.63 previously.
Total turnover rose 3.365 billion shares valued at RM5.685 billion from 3.332 billion shares worth RM4.99 billion last week.
Volume on the Main Market increased to 2.875 billion shares valued at RM5.579 billion from 2.781 billion shares worth RM4.896 billion last week.
Call warrants volume went up to 153.079 million units valued at RM26.959 million from 137.595 million units worth RM22.408 million last week.
The ACE Market volume however, fell to 226.190 million shares valued at RM48.175 million from 336.747 million shares worth RM49.165 million last week. -- Bernama
Olympics Ceremony Viewed in U.S. by 67.5 Million (Update2)
NBC’s broadcast of the opening ceremony of the Winter Olympics in Vancouver last night was watched by 67.5 million people in the U.S., the most ever for a non-U.S. Winter Olympics.
The event at B.C. Place stadium had a 17.3 rating, New York-based NBC said today in an e-mailed statement, citing preliminary data from Nielsen Co. NBC’s telecast of the opening ceremony four years ago was seen in 12.8 percent of U.S. homes, for an overall viewership of 50.5 million. Each rating point equals about 1 percent of the 114.9 million U.S. television households.
The average viewership was 32.6 million, or 47 percent higher than Turin, Italy four years ago, and the most for a non- U.S. Winter Games since 1994 in Norway, NBC said.
Viewership in Canada was 13.3 million, making the ceremony the most-watched event ever in the country, said Renee Smith- Valade, a spokeswoman for the Vancouver Olympics committee.
The opening ceremonies of the 2008 summer Olympics in Beijing on NBC were watched by an average of 34.2 million people, Nielsen said at the time. The network will lose $250 million airing the Vancouver Winter Olympics, parent General Electric Co. has said.
GE, based in Fairfield, Connecticut, fell 22 cents, or 1.4 percent, to $15.55 yesterday in New York Stock Exchange composite trading. The shares dropped 6.6 percent last year.
Comcast Corp., the Philadelphia-based cable company that plans to acquire NBC Universal through a venture with GE, rose 1 cent to $15.35 on the Nasdaq Stock Market and was unchanged in 2009.
To contact the reporter on this story: James Callan in New York at Jcallan2@bloomberg.net
The event at B.C. Place stadium had a 17.3 rating, New York-based NBC said today in an e-mailed statement, citing preliminary data from Nielsen Co. NBC’s telecast of the opening ceremony four years ago was seen in 12.8 percent of U.S. homes, for an overall viewership of 50.5 million. Each rating point equals about 1 percent of the 114.9 million U.S. television households.
The average viewership was 32.6 million, or 47 percent higher than Turin, Italy four years ago, and the most for a non- U.S. Winter Games since 1994 in Norway, NBC said.
Viewership in Canada was 13.3 million, making the ceremony the most-watched event ever in the country, said Renee Smith- Valade, a spokeswoman for the Vancouver Olympics committee.
The opening ceremonies of the 2008 summer Olympics in Beijing on NBC were watched by an average of 34.2 million people, Nielsen said at the time. The network will lose $250 million airing the Vancouver Winter Olympics, parent General Electric Co. has said.
GE, based in Fairfield, Connecticut, fell 22 cents, or 1.4 percent, to $15.55 yesterday in New York Stock Exchange composite trading. The shares dropped 6.6 percent last year.
Comcast Corp., the Philadelphia-based cable company that plans to acquire NBC Universal through a venture with GE, rose 1 cent to $15.35 on the Nasdaq Stock Market and was unchanged in 2009.
To contact the reporter on this story: James Callan in New York at Jcallan2@bloomberg.net
American, British Airways Win U.S. Permission for Alliance
AMR Corp.’s American Airlines and British Airways Plc won tentative U.S. government permission to deepen their trans-Atlantic alliance as they counter competition created by a 2008 lifting of flight restrictions on rival carriers.
American Airlines, the second-largest U.S. carrier, and British Airways, Europe’s third-biggest, may jointly price, market and schedule international flights in their Oneworld alliance without fear of antitrust prosecution, the U.S. Transportation Department in Washington said today.
The approval is also subject to conditions, the department said in a statement. Three other carriers are part of the agreement, which is still under review by the European Union.
To contact the reporter on this story: John Hughes in Washington at jhughes5@bloomberg.net
American Airlines, the second-largest U.S. carrier, and British Airways, Europe’s third-biggest, may jointly price, market and schedule international flights in their Oneworld alliance without fear of antitrust prosecution, the U.S. Transportation Department in Washington said today.
The approval is also subject to conditions, the department said in a statement. Three other carriers are part of the agreement, which is still under review by the European Union.
To contact the reporter on this story: John Hughes in Washington at jhughes5@bloomberg.net
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