A round-up of today's business news
World Bank chief urges new priorities
World Bank president Robert Zoellick said yesterday that the institution needs to adapt its mission to deal more effectively with global economic changes, in particular the rising influence of emerging powers.
In a speech he called for a broader approach to tackling the development needs of poor countries that goes beyond aid and looks more at market solutions to help emerging powers.
Mr Zoellick said the international community should help integrate them more effectively as "responsible stakeholders" in the international economic system where they are playing a larger role. - ( Reuters)
McEvaddys in Berlin project
A consortium of Irish investors led by aviation entrepreneurs Ulick and Des McEvaddy have bought a majority interest in an 86-acre site beside the new airport in Berlin which they plan to develop. Ulick McEvaddy estimated that the project, which includes a hotel, conference centre, shops, offices, houses and apartments, would be worth €800 million when completed.
The development of the site will be a joint venture between the Irish consortium, which includes clients of Dublin accountancy firm Farrell Grant Sparks (FGS), and German property group Investa. The project coincides with the construction of the new Berlin Brandenberg International airport which is due to be completed in 2011 at a cost of €2.7 billion.
Ford warns of market difficulties
Ford Motors has backed off from its long-voiced goal of becoming profitable in North America next year and underscored the threat from soaring raw materials costs and US buyers' headlong shift to smaller vehicles.
The warning is a setback to Alan Mulally, Ford chief executive, whose Way Forward restructuring plan centred on restoring the company to profitability in its largest market by next year. - ( Financial Times service)
Warning on US trade Bill plans
A Bill to strengthen US tools to enforce trade agreements is unnecessary and could invite retaliation against US farm exports to China, a top US trade official said yesterday.
"We completely agree that effective enforcement has to be a very high priority, and it is. We also believe that we have the tools at our disposal to do that," Warren Maruyama, general counsel for the US Trade Representative's Office, told the Senate finance committee.
But Senate finance committee chairman Max Baucus said the Bush administration had not been aggressive enough in enforcing the growing number of trade agreements it had negotiated, as well as longer-standing pacts. - ( Reuters)
Nigeria demands $2bn from oil firms
Nigeria is demanding Shell and ExxonMobil pay a combined total of almost $2 billion in unpaid taxes and revenues after a review of contracts covering giant offshore oilfields signed in the early 1990s.- ( Financial Times service)
Investment bank shares sell call
Veteran bank analyst Richard Bove told clients to sell shares of Goldman Sachs, Lehman Brothers and Merrill Lynch, warning that big investment banks would be damaged by an economy slowed by rising energy prices and rising rates.
The analyst yesterday cut his 2008 outlook for these three investment banks as well as Morgan Stanley, but maintained a "neutral" rating for Morgan. Bove predicted in a research note that investment bank stocks would decline this summer on weak earnings, a cloudy outlook and seasonal weakness.- ( Reuters)
