News & Current Affairs

July 17, 2009

US firm averts French explosion

Filed under: Business News, Entertainment News, Latest, Politics News — Tags: , , , , , , , , , , , , , — expressyoureself @ 6:15 pm

US firm averts French explosion

Gas bottles have been placed around the New Fabris site

A threat to blow up another French factory has not been defused

A US construction equipment firm has agreed to pay extra compensation to French workers who had threatened to explode gas canisters at their plant.

Staff at JLG Industries in Tonneins, south-western France, made the threat in order to get better redundancy terms for 53 workers.

It is the third such incident in which workers have threatened violence against employers.

Elsewhere, French workers have taken managers hostage in “boss-nappings”.

The French Employment Minister, Laurent Wauquiez, described the tactics as “blackmail”.

In the JLG deal, the 53 affected workers were each guaranteed 30,000 euros (£26,000; $42,000) in severance pay.

JLG Industries is a subsidiary of the US company Oshkosh, which makes cranes and work platforms.

Meanwhile, a tense stand-off continues at the bankrupt New Fabris car plant in Chatellerault, south-west of Paris, where workers have also made a threat to blow up the factory.

They have given a 31 July deadline for Renault and Peugeot, which provided 90% of the plant’s work, to pay them 30,000 euros each.

Renault and PSA Peugeot said it was not their responsibility to pay workers.

The BBC’s Emma Jane Kirby in Paris says there is an acute sense of injustice in France at the moment, with many workers complaining that while their bosses continue to reap company benefits and bonuses, they are paying for this economic crisis with their jobs.

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September 18, 2008

India drug firm turns to Giuliani

India drug firm turns to Giuliani

Rudolph Giuliani

Mr Giuliani’s firm will advise on compliance

Indian drug firm Ranbaxy has hired ex-New York City Mayor Rudolph Giuliani as an adviser, the company says.

The move comes a day after the US Food and Drug Administration (FDA) banned the import of more than 30 generic drugs made by the drug firm.

The FDA said it imposed the ban after it found manufacturing quality problems at two Ranbaxy factories in India.

Ranbaxy said Mr Giuliani’s consulting and investment firm will advise it and look into compliance issues.

Ranbaxy has said it is “very disappointed” with the decision of US drug authorities.

The import ban affects some popular generic versions of antibiotics and cholesterol medicines.

Key documents

In July, US prosecutors had alleged that Ranbaxy, India’s largest pharmaceutical company, deliberately lied about the quality of its low-cost drugs, including those for HIV.

The US Department of Justice wanted the firm to hand over key documents relating to drug testing procedures.

The firm was paid millions of dollars by the US government to provide low-cost HIV drugs for President Bush’s emergency plan for Aids relief, which was set up to help Aids patients in 120 countries around the globe.

Defending the reliability of its drugs, Ranbaxy had said the US Food and Drugs Administration had tested over 200 random samples of its products and found them “complying with all the specifications”.

In June the Japanese pharmaceutical company Daiichi Sankyo agreed to pay more than $4bn (£2bn) for a controlling stake in the firm.

The US government has been investigating Ranbaxy since February 2006 when the FDA issued a warning letter over what it said were manufacturing violations found at a Ranbaxy factory in India.

Since then Ranbaxy has been trying to resolve the issue with US regulators.

Last year, US officials seized documents from Ranbaxy’s US headquarters in New Jersey.

In July, Justice Department prosecutors alleged that the company had systematically lied about the makeup of its generic drugs, which include a cheaper version of US drug maker Merck’s cholesterol pill Zocor.

Ranbaxy has denied any wrongdoing, saying the allegations were baseless.

The FDA will only approve cheaper generic drugs if they can be shown to be equivalent to the original drug.

US investigators had also alleged that Ranbaxy has used unapproved ingredients in its drugs.

September 15, 2008

Lehman set to go into insolvency

Lehman set to go into insolvency

Graph

Preparations are being made for Lehman Brothers, the fourth-largest investment bank in the US, to file for bankruptcy.

The two strongest potential buyers appear to have pulled out of talks to rescue Lehman – the latest victim of the American credit crisis.

If no new financing comes before Wall Street opens, it will have to seek “Chapter 11” bankruptcy protection.

This could result in a severe shock to the global financial system, as banks unwind their complex deals with Lehman.

Late on Sunday the US central bank, the Federal Reserve, announced new moves to ease access to emergency credit for struggling financial companies.

The Fed said the step – which broadens the types of securities financial institutions can use to obtain emergency loans – was designed to mitigate the potential risks and disruptions to markets.

In a related move, a consortium of 10 investment banks announced a $70bn (£39bn) loan program that troubled financial companies can use to help ease the credit shortage.

The banks – Bank of America, Barclays, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Merrill Lynch, Morgan Stanley and UBS – each agreed to provide $7bn (£4bn) to the pool.

On Monday, Asian stock markets fell amid concerns over the fate of Lehman Brothers.

Singapore stocks dropped 2.26% in morning trading and shares in Taiwan fell 1.83%.

Markets in Tokyo, Hong Kong, Shanghai and Seoul were closed for public holidays.

Lehman employs about 25,000 worldwide, including 5,000 in the UK.

Accountancy firm PWC has already been lined up to run the British operations of Lehman should the firm go into administration.

BBC business editor Robert Peston says UK bank Barclays’ decision to walk away from a Lehman deal was a huge setback for the effort to rescue the Lehman.

Barclays terminated the negotiations because it was unable to obtain guarantees in relation to financial commitments faced by Lehman when markets open on Monday.

Bad bank, good bank

The rescue effort for Lehman was being co-ordinated by the US Treasury and the New York Federal Reserve.

No other large firm should buy Lehman whole – its toxic real estate and securities are too difficult to value
Peter Morici
University of Maryland

The US government had hoped to arrange a bailout under which other US investment banks would finance a “bad bank” that would hold the most “toxic” investments of Lehman in the property and mortgage market.

The “good bank” or rest of the firm, including its investment and wealth management arms, would then be sold to another financial institution, for example Bank of America or the UK’s Barclays.

Although such a deal would have cost the other investment banks millions, it might have restored confidence in the sector and avoided a sharp drop in the share price of all banks.

However, it appears that this plan is falling apart.

“The only thing that can prevent Lehman collapsing would be a huge injection of taxpayers’ money,” a banker close to the talks told the BBC, but added that US Treasury Secretary “Hank Paulson has made it clear he doesn’t want to do that”.

Hard choices

Bank of America, meanwhile, is said to be unconvinced that buying Lehman would be in the interest of its shareholders.

Instead, according to a report in the New York Times, Bank of America is in “advanced talks” to buy investment bank Merrill Lynch for more than $38bn.

HAVE YOUR SAY

It’s amazing that companies which charge high interest to cover risk still need to be bailed out by the taxpayer.

Jack, Canada

Like other US investment banks Merrill has suffered losses of tens of billions of dollars in the subprime crisis, and has seen its share price plummet during recent months.

“No other large firm should buy Lehman whole – its toxic real estate and securities are too difficult to value,” said Peter Morici of the business school of the University of Maryland.

Lehman is up for sale after it reported a $3.9bn (£2.2bn) quarterly loss last week amid concerns over its long term financial viability.

The firm’s share price has plummeted as fears over its future have mounted.

Former Federal Reserve boss Alan Greenspan said the US government faced “very difficult decisions” over Lehman if it could not secure a rescue deal that did not involve public funds.

Yet Mr Greenspan said it would be “unsustainable” for the government to bail out every US bank that got itself into difficulty.

Predicting that Lehman would not be the last to require rescuing, Mr Greenspan added that this would not necessarily pose a problem.

“The ordinary course of financial change has winners and losers,” he said.

September 14, 2008

NZ firm warned of China milk risk

NZ firm warned of China milk risk

Babies suffering kidney stones possibly related to defective baby formula in hospital in Lanzhou, Gansu province, on 9 September

Babies have been suffering kidney stones – rare in young children

A Chinese firm accused of selling milk powder that has made babies unwell was warned in August over the safety of its product, its partner and co-owner says.

New Zealand-based dairy giant Fonterra said it had urged China’s Sanlu Group to recall the tainted powder six weeks before Sanlu took adequate action.

The Fonterra farmers’ co-operative owns a 43% stake in Sanlu.

More than 400 babies in China have been taken ill after using milk contaminated with the industrial chemical, melamine.

Melamine is used to make plastics and is banned from food. Ingesting it can lead to the development of kidney stones.

At least one child has reportedly died in China as a result of using the contaminated milk, which the firm recalled from sale on Thursday.

‘Severe punishment’

In a statement released on Sunday, Fonterra said it had urged Sanlu’s board to recall the milk powder as soon as it learnt of the contamination – on 2 August.

“From the day that we were advised of the product contamination issue in August, Fonterra called for a full public recall of all affected product and we have continued to push for this all along,” the statement said.

Chinese officials have complained that they were only alerted last Monday of the dangers posed by the milk. They said Sanlu’s customers had been complaining about the milk since March.

China’s Health Minister, Gao Qiang, said on Saturday that Sanlu “should shoulder major responsibility for this”.

He said those responsible for the contamination “would be dealt with severely”. Nineteen arrests have so far been made over the scandal, Chinese authorities say.

Some of the tainted milk had been sent to Taiwan but none had been sold to other foreign markets, Mr Gao said.

Melamine has been used by Chinese suppliers of animal feed components to make them appear to have more protein.

It was linked to the formation of kidney stones and kidney failure in pets in the United States last year, leading to thousands of deaths and illnesses.

A fake milk powder scandal in 2004 killed at least 13 babies in China’s eastern province of Anhui.

Investigators found that the milk given to these babies had no nutritional value, and the resulting scandal triggered widespread investigations into food safety.

August 21, 2008

Search for clues in Madrid crash

Filed under: Latest — Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , — expressyoureself @ 1:23 pm

Search for clues in Madrid crash

EFE]

Examination of the wreckage began the morning after the crash

Accident investigators have begun examining the wreckage of a plane that crashed at Madrid’s Barajas airport, leaving 153 passengers dead.

They will also start to analyze the flight data and voice recorders, which have both been recovered.

Three days of official mourning have been declared in Madrid, as relatives arrive at a makeshift mortuary in the capital to identify bodies.

Nineteen people survived the crash and several are critically hurt.

Of the 19 survivors of Spanair flight JK 5022, four are listed as being in a “very serious” condition, with another six only slightly better, Spain’s El Pais newspaper reported on Thursday. Eight remain under observation with one only slightly injured, the newspaper said.

Relatives wait in Las Palmas airport, on Gran Canaria (20/08/2008)
The worst is the identification of the bodies. It is the end of all hope
Jesus Lopez Santana
Spanish Red Cross

Spanish Prime Minister Jose Luis Rodriguez Zapatero is expected to visit the injured in Madrid’s hospitals, while King Juan Carlos will visit Barajas airport.

The king is also likely to visit anxious families waiting for the grim confirmation that their loved-ones are among the dead.

Experts at a temporary mortuary near the airport say work to identify the dead is likely to be slow and painstaking, as many of the bodies were badly burned in Wednesday’s inferno.

“The worst is the identification of the bodies,” Red Cross spokesman Jesus Lopes Santana told the El Mundo newspaper.

“It is the end of all hope and when we see the worst scenes, because the majority of the relatives break down when they hear the news.”

The Spanair flight, bound for Las Palmas in the Canary Islands, took off on Wednesday lunchtime with 172 people on board, among them 10 crew.

Initial reports suggested that a fire had broken out in one of the MD82 plane’s engines during or shortly after take-off, and the plane ended up in a field.

Spanish Transport Minister Magdalena Alvarez said the plane had earlier begun taxiing to the runway, before turning back because of a technical problem, which had caused an hour’s delay in the take-off.

Spanish media said the pilot had reported a fault with a temperature gauge, but it was thought to have been fixed.

Speaking on Thursday, Ms Alvarez said a thorough investigation would be carried out, with a full examination of the flight recorders and available pictures, but that it was very early to draw conclusions about the crash.

A special independent commission has been established to probe the cause of the crash, Spanish media reported.

Anger

Spanair has released the official passenger manifest, confirming reports that 20 children and two babies were on board the plane.

Among those who survived were three children, aged six, eight and 11, reports said. At least one of the 19 survivors has yet to be identified.

Map

Overnight a long convoy of black hearses rolled out of the airport grounds to carry bodies to the makeshift mortuary, where the victims’ relatives had gathered, some of whom had traveled from the Canary Islands.

The convention center on the outskirts of the capital was also used as a mortuary after the Madrid train bombings four years ago.

Many of the relatives have expressed anger and disgust at Spanair, blaming it for the accident.

He says the injured include a young brother and sister, who immediately asked rescue workers about their parents.

Spanish ministers said foul play had been ruled out and the crash was considered to be an accident.

The 15-year-old plane had passed a safety inspection in January, said Sergio Allard, a spokesman for Spanair, which is owned by Scandinavian firm SAS.

Spanish media said some German, Swedish, Chilean and Colombian nationals had been among the passengers.

‘All destruction’

Spanish Prime Minister Jose Luis Zapatero cut short his holiday in the south of the country to visit the scene of the crash.

Hearses carrying the bodies of victims of the crash (20/08/2008)

A convoy of hearses removed bodies from the scene of the crash

Speaking at the airport, he said that “the government is overwhelmed, very affected, as are all Spanish citizens, by this tragedy”.

Television images on Wednesday showed plumes of smoke rising over the field in which the remains of the plane were resting.

Emergency services chief Ervigio Corral said that rescue workers had been faced with “a desolate scene”.

“You couldn’t distinguish that there was an aircraft there apart from the remains of the tail,” he said. “There was nothing of fuselage.”

Another rescue worker, Pablo Albella, told AP news agency: “The fuselage is destroyed. The plane burned. I have seen a kilometer of charred land and few whole pieces of the fuselage. It is all destruction.”

Messages of sympathy have been sent to Spain by leaders around the world.

The presidents of Russia, France and Italy, Germany’s chancellor and Britain’s queen joined with Latin American leaders in sending their condolences.

It was the deadliest air accident in Spain since a Colombian airline’s Boeing 747 crashed in Madrid in 1983 killing 181 people.

People concerned for relatives or friends who might have been on board the plane can call Spanair’s helpline on +34 800 400 200 (calls possible from inside Spain only).

Map and satellite image of Madrid airport, plus MD82 graphic
MD82 AIRCRAFT

Passengers 150-170
Cruise speed 504mph (811km/h)
Length 45.1m (148ft)
Height 9m (29.5ft)
Wing-span 32.8m (107.6ft)
Maximum range 2,052 nautical miles (3,798km)


Are you in Spain? Have you been affected by the crash? Send us your comments

August 8, 2008

India court okays UK mine project

India court okays UK mine project

Dhongria girl

The tribals say the mines will destroy their livelihoods

The Indian Supreme Court has allowed the British company Vedanta Resources to go ahead with a controversial bauxite mining project in Orissa state.

But, the court said, the company will have to pay for the development of the region out of its profits.

The region is considered sacred by tribes who live in the area and is protected by the constitution.

The Supreme Court has also allowed South Korean steel firm Posco to build a $12 billion plant in the same state.

Environmental and tribal activists have opposed Vedanta’s plans saying the mines will force people from their homes and destroy their livelihoods.

The tribes have said they would “fight to the death rather than leave their sacred home” in the Niyamgiri mountains.

The company has an agreement with the state government to set up a bauxite refinery in the Niyamgiri mountains.

In India, both the state and central government back the Vedanta plan as part of efforts to industrialise and exploit the mineral resources of underdeveloped eastern India.

The Supreme Court told the Indian unit of Vedanta, Sterlite Industries, that it will have to pay 10% of its profits or 100m rupees (whichever is more) for the development of the region.

August 7, 2008

Top Italian car designer killed

Top Italian car designer killed

Andrea Pininfarina

Andrea’s firm has been hit recently by the economic downturn

Andrea Pininfarina, head of a world-famous Italian car designgroup, has been killed in a road accident.

Mr Pininfarina was riding a scooter which was hit by a car on the outskirts of Turin early on Thursday. He was 51.

He was chief executive officer of the family firm Pininfarina, which has designed sports cars for Ferrari, Maserati, Volvo and Fiat.

He was the grandson of Battista Pininfarina, who founded the firm in Turin in 1930.

Andrea’s father Sergio Pininfarina, 81, is the company’s honorary chairman.

The family currently controls 55% of Pininfarina’s shares, but under a restructuring plan it aims to cut its stake to about 30%.

The firm recorded a net loss of 114.9m euros (£91m; $178m) last year.

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