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Tuesday, 23 April 2024
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European Business News (96-06-11)European Business News (EBN) Directory - Previous Article - Next ArticleFrom: The European Business News Server at <http://www.ebn.co.uk/>Page last updated June 11 11:15 CETCONTENTS
[01] British Airways and American Airlines set to create global networkAn alliance between AMR Corp.'s American Airlines and British Airways, to be announced Tuesday, will create the world's largest airline network and increase competition among global airline partnerships.Spokesmen for both American and British Air declined to comment, but officials familiar with their negotiations said the two airlines will form a marketing alliance to funnel passengers to each other. Although equity won't be traded, the two carriers will share revenue on certain routes, pooling profits in what will be close to a joint venture. No change will be made in British Air's relationship with its current U.S. partner, USAir Group Inc., which is 24.6%-owned by British Air, these people said. Instead, USAir will be part of British Airways' network. Likewise, Canadian Airlines International, which is 25%-owned by American and which already has a marketing alliance with British Airways, will remain a key American partner. [02] Thorn EMI earnings jump 76%Thorn EMI PLC announced that its pretax profit rose 76% to 477.6 million pounds, compared with 271.1 million pounds a year earlier.Thorn EMI also announced further details of its proposed spinoff of the rental and music businesses, which is conditional on approval by shareholders at an extraordinary general meeting to be held Aug. 16. [03] French household confidence falls to new lowFrench household confidence in May fell to its lowest point since December, when nationwide strikes paralyzed much of the nation, the national statistics institute INSEE said Tuesday.The consumer outlook on spending and future living standards darkened in May, while the outlook for savings improved slightly, INSEE said. The household confidence index fell to a negative 38 from negative 36 in April. The figure is the difference between the percentage of households with an optimistic outlook (a positive value) and the percentage with a pessimistic outlook (a negative value). The household confidence index hit a record low of negative 38 last December during the nationwide strikes, which dampened consumer spending. The index stood at negative 33 each of the following three months before dipping to negative 36 in April. [04] Sweden announces plans to curb jobless rateThe sales tax on new cars will be scrapped immediately, the Swedish government said Tuesday in a new bill aimed at promoting economic growth and reducing unemployment. Also, employers will get a five percentage point reduction in payroll taxes for wages totaling up to 600,000 kronor, or roughly three employees.The measures are part of the government's plan to make good on its pledge to halve open unemployment to around 4% by the year 2000. At a press briefing in Stockholm, Prime Minister Goeran Persson called this the most important challenge. It means creating work for about 270,000 people, a task to be achieved through a combination of increased education, labor market reforms, and an increase in government-sponsored job training schemes. [05] UK industrial production lower than expectedBritish manufacturing output fell a seasonally-adjusted 0.3% in April from March and was up 0.3% from a year earlier, according to data published Tuesday by the Office for National Statistics (ONS).Total industrial production, which includes volatile oil and gas extraction, fell a seasonally adjusted 0.8% in April from March and was up 0.8% from April 1995. The headline manufacturing output increase was lower than economists' median forecast for unchanged output on the month, and a 0.4% rise on the year. April industrial production was also lower than previous forecasts by economists, who had been looking for production to remain unchanged on the month and increase 1.1% year-on-year. [06] US criminal probe of UK Lucas seen continuingLucas Industries PLC's U.S. defense operations remain under criminal investigation for alleged quality-control lapses, according to Tuesday's Wall Street Journal.The investigation is continuing despite the company's previous guilty pleas and assertions that all such problems were resolved prior to its recent $2 billion merger agreement with Varity Corp., according to law-enforcement officials. The Pentagon's inspector general's office has opened two separate Lucas inquiries in the past few months prompted by new complaints, these officials said. In addition, as part of the fallout from an earlier investigation, the inspector general's agents are urging a permanent ban to keep the British company's Geared Systems Division in Utah from receiving any new military contracts. [07] United Utilities and Utilicorp in merger reportsUnited Utilities PLC is in merger talks with Utilicorp United Inc. (UCU) that would create one of the U.K.'s most powerful utility groups, according to a report in the London Evening Standard newspaper.The American company, which already has a presence in the U.K. gas industry as a wholesaler and transporter, declined to comment on the alleged discussions with United, according to the report. United Utilities was formed in 1995 from the 1.8 billion pounds merger of North West Water and Norweb. The report says a merger between United and Utilicorp could be announced within weeks. [08] Consob clears Berlusconi's Mediaset flotationConsob, the Italian market's regulatory agency, has approved the prospectus Monday for the upcoming offering of up to 20% of Mediaset's shares.The move was generally expected, though recently launched investigations of parent company Fininvest SpA had produced concerns that the initial public offering - scheduled for the end of this month - could be impeded. 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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