In Wednesday's UK papers

31 May 2000 09:02  [Source: ICIS news]

A summary of political, economic, trade, business and product news affecting the chemical and related industries.

International Economics and Politics

IMF to streamline organisation

The new head of the International Monetary Fund (IMF) has announced plans to streamline the organisation.

Horst Kohler said he agreed that the IMF should be more focused and concentrate on areas where it has clear expertise. He also said there should be an emphasis on co-operation between the borrowing countries, the private sector and the international institutions.

Kohler was speaking to the annual meeting of the International Monetary Conference in Paris.

The Times page 28 (Business in Brief)

Financial Times page 14

The Daily Telegraph page 31

 

OECD urges US to raise rates

The Organisation for Economic Co-operation and Development (OECD) has urged the US to raise interest rates sharply to avoid a hard landing for the economy.

The US can expect to experience a sharp fall in Wall Street, a slump in the dollar and a global economic downturn if it does not raise rates sufficiently by August, the OECD warned.

The Paris-based research agency, in its latest economic outlook, describes the world’s economies as in good health. But it warns that unless central banks act to head off inflation, interest rates will have to rise even further.

The Times page 27, 29 (Commentary), 31 (Economic Agenda)

The Independent page 19, 3 (Leader – Wednesday Review)

Financial Times page 1, 2, 11, 12, 22 (Editorial)

The Daily Telegraph page 29

The Guardian page 25

 

US consumer confidence rises sharply

US consumer confidence rose sharply in May, reaching the record level seen in January, according to the Conference Board.

The board said its consumer confidence index stood at 144.4 in May, up from 137.7 in April and its highest since a record 144.7 in January.

Economists had expected the index to ease in May. The rise runs counter to a number of indicators over the past month that have suggested that the spending growth that has powered the US economic expansion may be starting to ease.

Financial Times page 11

 

FTC sets new tough merger regime

The US Federal Trade Commission (FTC) is setting tougher rules for America’s biggest acquisitions, notes the Financial Times.

The newspaper looks at the new policy operated by the US regulator in the wake of the collapse of the takeover of BOC by Air Products of the US and Air Liquide of France.

One of the key factors driving this policy shift is the requirement that merging companies with overlapping businesses must find a strong competitive buyer for the divested operations. The FTC is also insisting that if an ongoing business is sold it will have the same potential and incentives to expand and innovate as the firm that disappeared.

Financial Times page 23

 

Japan data raises hopes

Unemployment has dropped marginally in Japan while consumer spending has risen, according to recently released data.

The jobless rate dipped to 4.8% in April, down from 4.9% in March. Household spending was 3.9% higher than the same period a year ago. It was only the second month in which spending had shown an improvement during the past nine months.

The Organisation for Economic Co-operation and Development (OECD) reports in its economic outlook that Japan is on track for recovery. It predicts growth of 1.7% in 2000, up from its previous forecast of 1.4%.

Financial Times page 12

 

Japan’s chemicals giant face probe

The Japanese Fair Trade Commission (FTC) raided the offices of seven chemicals companies this week, on suspicion of price fixing in the domestic polypropylene (PP) market, reports the Financial Times.

The seven raided were: Sumitomo Chemical, Tokuyamu, Japan Polychem, Grand Polymer, Idemitsu Petrochemical, Chisso and Montell SDK Sunrise – a Japanese joint venture of Royal Dutch/Shell.

Japan’s PP market is worth about £2bn ($3bn/Euro3.2bn). Companies have increased prices twice in 1999 in response to increases in the price of naphtha and crude oil.

Financial Times page 10 (News Digest)

 

ECB warning on intervention

A flurry of statements by European politicians and bankers over recent weeks has raised the possibility of intervention by the European Central Bank (ECB) to support the ailing euro.

The Financial Times weighs up the arguments for and against intervention.

Financial Times page 10

 

German growth driven by exports

Germany’s gross domestic product (GDP) grew strongly during the first quarter of the year – some 0.7% higher than the previous quarter.

Growth was driven by exports, boosted by the weak euro. Compared with the first three months of 1999, GDP growth was 3.3%.

The finance ministry said the economy was on "a robust upward trend".

Financial Times page 9

 

Dispute over inward investment in the UK

The UK government is divided over claims that international companies are sidelining Britain as a destination for investment in preference to European countries which have adopted the euro.

The claims were made in a report by Ernst & Young. The report shows that the UK retained its position as the biggest single recipient of projects in 1999. But its market share slipped from 28% to 24% of new projects.

The UK Prime Minister’s press secretary said the report "does not tell the whole story". But the government’s trade and industry secretary, Stephen Byers, said the report confirmed the view that Britain’s exclusion from the euro was affecting investment intentions.

Financial Times page 2

 

New treaty on patent procedures

A new treaty that simplifies and harmonises patent procedures around the world is to be adopted this week at a conference organised by the World Intellectual Property Organisation (Wipo).

The treaty aims to cut the cost of patent protection and make procedures more user-friendly and accessible.

Financial Times page 15 (News Digest)

 

Trade

Opportunity for new global trade round

The US Congess’s decision last week to grant China permanent normal trade relations (PNTR) offers an opportunity to focus on reform of the World Trade Organization and relaunch talks on the liberalisation of global trade.

The Financial Times looks at the prospects for progress on both issues.

Financial Times page 23

 

Environment

Funding issue clouds science research

Science has been corrupted by collusion with governments and big business to pervert the truth, claims Jonathon Porritt, the former head of Friends of the Earth in a column in The Guardian.

He points to evidence from the debates over climate change and genetic engineering to support his thesis.

The Guardian page 4/5 (Society section)

 

Biotechnology

EU committee urges GM seed purity

The European Union’s (EU) Seed Committee has urged interim measures to be adopted to guarantee seed purity in the wake of the recent concern over the sowing of genetically modified (GM) rape in Britain, France, Germany and Sweden.

Meeting in Brussels, the committee agreed to discuss appropriate measures at an ad-hoc meeting in June.

Broad-ranging European legislation against the possibility of GM contamination is currently being drafted.

Financial Times page 15 (News Digest)

 

Monsanto admits GM crop impurity

Monsanto has revealed that its most widely used genetically modified (GM) product contains unexpected gene fragments.

It says two extra gene fragments have been found in its Roundup Ready soyabeans. The soyabeans have been grown commercially for four years and are used as an ingredient in processed foods.

Monsanto’s revelation comes shortly after authorities in Britain, France and Germany expressed concern that thousands of acres of oilseed rape have been contaminated by GM material.

The Guardian page 1

 

Scientists claim GM tomato will boost health

Scientists at the University of London have developed a tomato with increased beta carotene, a compound thought to help the body fight heart disease, cancer and degenerative eye problems.

The genetic work, reported in Nature Biotechnology, uses a gene from a bacterium called Erwina uredovora. The gene, called crtI, has been isolated by the Kirin Brewer in Japan and licensed to biotechnology companies, including Zeneca in Britain.

The Independent page 13

 

Company News And Results

Novartis buys contact lens maker

Novartis’ eye care unit, Ciba Vision, is paying $785m (Euro848m) for rival contact lens maker Wesley Jessen VisionCare.

The deal has seen off US manufacturer Bausch & Lomb (B&L), which tendered a hostile bid for Wesley Jessen in March.

Ciba Vision will now be about the same size as B&L in global market size. Johnson & Johnson (J&J) is market leader through its subsidiary Vistakon.

Financial Times page 35

 

India sells stake in fertiliser group

The Indian government is planning to off-load a 74% stake in the publicly-owned Paradeep Phosphates, Asia’s largest diaammonium phosphate (DAP) fertiliser complex.

It is looking for a strategic partner to buy the stake in the group which has been losing money for about five years.

PPL owns a 720 000 tonne/year capacity DAP factory and two acid plants at Paradeep.

Financial Times page 40

 

Axis-Shield to meet trading expectations

Axis-Shield said trading had been in line with expectations it set out in March.

Nigel Keen, chairman, also said that Axis had obtained approval from the US Food and Drug Administration (FDA) for its test for HbAlc, used for diabetes monitoring.

The Times page 28 (Business in Brief)

 

Nycomed ahead in US patent dispute

Nycomed Amersham said an appeal lodged by PE Biosystems has been dismissed by a US judge.

The ruling followed a decision by a California court to uphold a Nycomed unit’s interpretation of the claims of a US patent relating to DNA sequencing.

The Times page 28 (Business in Brief)

The Guardian page 25 (City Briefing)

 

Fund to invest in drugs companies

Merchant banker Schroder has launched a Medical Discovery Fund to invest in pharmaceutical companies.

Schroder will give a portion of its fees to cancer research.

The Times page 1

The Daily Telegraph page 9

(Some of the stories may not appear in all editions of the relevant newspapers)

By: Patrick Reynolds
+44 208 652 3214

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