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Unilateral import liberalisation under pressure from lending agencies exposed least developed countries including Bangladesh to preference erosion, a local research organisation said in a study.
   ‘The multilateral liberalisation of the WTO will hit further blow to LDCs’ already marginalized by lenders-dictated opening of import markets, said the study of The Innovators.
   Economists Rashed al Mahmud Titumir and M Iqbal Ahmed co-authored the study titled ‘Unkept Promises: Non-Agricultural Market Access at the WTO’ that analysed the country’s apparel trade and reviewed the country’s position on the ongoing WTO negotiations regarding trade in non-farm products.
   It non-agriculture market access negotiation would whittle the export basket down to one or a handful of products, squeezing the country’s production capacity and leading to de-industrialisation, the researchers cautioned.
   The quota free regime witnessed surge of China’s ready-made garments export that grew by 65.5 per cent in January-July period of 2005, compared to the corresponding period of the previous year while India accounted for 27.2 per cent growth compared to 20.5 per cent growth achieved by Bangladesh, the study pointed out.
   ‘But the IMF-launched Trade Integration Mechanism (TIM) has served more for liberalisation than offsetting erosion of preference while a global fund to help LDCs address the supply side constraints has remained elusive,’ it said.
   The Innovators economists were of the view that the policy space for development including industrial policies is constrained by TRIPS, TRIMS and regional trade agreements.
   ‘The WTO shows off for “less than reciprocity” commensurate with development, but powerful members demand more than full, while kicking away the special and differential treatments to un-actionable constructive ambiguities,’ the study continued.
   It illustrated gross tariff discrimination to the LDCs’ products by the developed countries while the poor economises are crying for zero-tariff access to rich markets.
   In US market the LDCs faced 4.91 per cent weighted-average import tariff whereas tariff rate for developed countries was only 0.98 per cent.
   Thus LDCs including Bangladesh faced 500 per cent higher import-weighted average tariff rates in 2004 compared to those of the developed world for imports to US market.
   ‘Bangladeshi products, on an average, faced 15.87 per cent above the MFN applied tariff rate in the USA, which is 3.7 per cent in 2004,’ revealed the study.
   Of Bangladesh’s total exports of $2.07 billion to USA, 51 per cent confronted tariffs between 15 and 20 per cent whereas 9 per cent of the exports encountered over 30 per cent tariff, mostly between 32 per cent and 37.5 per cent
   ‘The US imposed $329.12 million tariffs on $2.07 billion exports from Bangladesh, higher than those imported from Canada, Sweden, Belgium, Switzerland and Spain, which possess greater shares in the US market and have many-fold higher per capita GDP,’ the Innovators study said.
   Knit and woven apparels constitute 95 per cent of total textile and clothing exports to the USA in 2004, and the average tariffs faced by these were 15.79 per cent and 19.37 per cent respectively.
   The dairy products encountered highest tariff (33.48 per cent) amongst the commodities.
   ‘These differentiations imply that the trade regimes are hostage to a few powerful interest groups and corporations,’ the authors said in the study.

World Fish Centre and Bangladesh Shrimp and Fish Foundation have teamed up to revive the lost glory of the Halda river as the county’s largest natural fisheries breeding ground.
   To conduct a study on how to protect resources of the river located in Chittagong, WFC and BSFF Thursday signed an agreement at the secretariat in presence of Fisheries and Livestock Minister Abdullah Al Noman. BSFF chairman Syed Mahmudul Haque and WFC director of South Asia region Alan Brooks signed the agreement on behalf of their respective organisations.
   The two-month long study, to be financed by WFC, is expected to begin next week.
   The main objectives of the research are to provide a clear landscape for assessing, monitoring and managing the river to conserve its fish resources, raise economic value of its resources and improve the livelihoods of those dependent on it.
   Addressing a press conference organised on the occasion, the minister said fish resources of the Halda river are now dwindling for various reasons and the government has taken steps to bring back the river’s lost glory as the natural breeding ground.
   He said a project would be undertaken on completion of the study to protect resources of the river. In the next breeding season, certain areas of the river would be declared sanctuary restricting fishing and movement of engine boats.
   The press conference was addressed, among others, by Fisheries and Livestock Secretary M Abdul Karim, BSFF chairman Syed Mahamudul Haque and WFC director of South Asian region Alan Brooks.
   The Halda river is considered as one of the most important rivers since fertilised carp eggs are found in it. But collection of carp spawns decreased sharply over the years due to man-made pressure and lack of management. In 1946, over 4,000 kilograms of carp spawns were collected from the river while only 100 kilograms in 2005.

The Centre for Policy Dialogue has proposed that the civil society forum should be held regularly for advancing the interests of the least developed countries in the biannual ministerial meeting of the World Trade Organisation.
   The formal proposal was tabled in the closing session of the three-day seminar, styled ‘International Civil Society Forum 2005’ that ended in Dhaka on Wednesday, organised by the CPD in collaboration with eight other international NGOs.
   ‘We propose the forum to be held regularly in different LDCs and we will provide our support to organise the event,’ said the executive director of the CPD, Debapriya Bhattacharya, when delivering his speech in the closing session.
   He also said if there was no organisation ready to organise in any other least developed country, then CPD would ready to hold the event again in association with the others.
   The closing session, where the foreign ministry adviser, Reaz Rahman, was present as the chief guest, while the commerce secretary, Faruq Ahmed Siddiqui was present as special guest, was also marked with the adaptation of Dhaka Declaration.
   The president of the International Chamber of Commerce Bangladesh and the chairman of the national advisory committee to the forum, Mahbubur Rahman, presided over the session.
   The co-chair of the advisory committee, Khusi Kabir, delivered the opening statement. The representatives of the co-organisers also delivered their statements.
   The LDC unit head in WTO, Annet Blank and Zambian ambassador to the WTO, Love Mtesa, also spoke in the occasion.
   In the WTO, Zambia is the co-coordinator for the LDCs.

Export of Nepali readymade garments to the United States continued to suffer a massive loss for the ninth straight month this year, as it plummeted by 43 per cent in September, compared to the corresponding period last year, says a Nepali daily.
   With the termination of multi-fibre arrangement (MFA) from January 1 this year, garment exports has been dwindling and a massive decline in the coming months was further expected, The Himalayan Times reported on Thursday, quoting industry sources.
   Nepali apparel products, which were enjoying duty-free market access to US prior to MFA termination, witnessed a huge fall of 30 per cent in 2004. The problems for garment exports began with a whopping decline of 46 per cent in January, which further expanded to 55 per cent in February. Exports didn’t improve, as it fell by 41 per cent and 15 per cent in March and April respectively.
   The negative export figures stood at 50 per cent in May, 18 per cent each in June and July and massive 62 per cent in the month of August.
   The single market concentration is also partially to be blamed for such a huge plummet, as US alone absorbs more than 80 per cent of the total garment exports from Nepal. Garment and apparel products valued at over $3.38 million were exported to US in September, whereas garment products worth over $5.94 million were exported last year, reveals figures provided by the Garment Association of Nepal (GAN), today. The fall in exports indicates a difficult time ahead for Nepali garment exporters, as the world’s biggest apparel market US, has now been opened to all competitors without quota restrictions. Enhancement of the competitive strength in terms of price and quality has also become a ‘must do’ agenda for Nepali readymade garment industry, if it has to survive the cutthroat competition.

The National Board of Revenue detected a Tk 5 crore value added tax evasion of Bata Shoe Company (Bangladesh) Limited, a Canadian shoe company operating in Bangladesh since 1962.
   ‘We have served the company two show cause cum demand notices, but it sought further time in a letter written Tuesday,’ an NBR source told BDNEWS Thursday.
   An NBR investigation found that Bata evaded VAT worth Tk 4.98 crore through its 13 wholesale depots.
   The company has been distributing shoes, which are being manufactured in its Dhamrai and Tongi factories, to 13 wholesale depots without paying any VAT to the government, sources said.
   ‘According to the VAT rules, the company is supposed to pay VAT at a rate of 1.5 per cent during its shipment to wholesale depots from the factories,’ said Enayet Hossain, Commissioner of the large taxpayers unit (LTU) of VAT of NBR.
   ‘We have calculated the evaded VAT amount since July 2001,’ another official in the LTU told BDNEWS. When asked a Bata official about the allegation said, the amount was paid at the factory level.
   But NBR officials said that the evaded VAT amount has to be paid as per the sale of the wholesale depots. ‘In case of failure, we will go for actions based on the VAT Rules,’ they said.

Ansar-VDP will start selling the products of the Trading Corporation of Bangladesh (TCB) from Saturday.
   An official of the TCB said that due to the shortage of the officials and employees, the Ansar-VDP would take the responsibility of selling TCB products at different spots of the country.
   The authorities concerned is going to take initiative to increase number of the selling spots, the official said adding that the Corporation’s products would be sold from 70 spots including 37 new ones in the four divisional cities including Dhaka.
   In this regard, the TCB Board Thursday held a discussion where it was told that the imported items would be sold out in next 10 days. The ministry also has planned to supply more commodities through the corporation, sources said adding that a decision, in this regard, would be taken on Saturday.
   Meanwhile, there was an allegation of cheating in weight in TCB sales programmes. The consumers at different spots claimed that they were given 100 gm less in per kilogram and low quality grams.

The lovers of Thai fruits and vegetables in the country are compelled to pay exorbitant prices while buying those products.
   The importers and the revenue department sources said the fruits that sold at Thai currency equivalent to Tk 40 to Tk 45 in the Thai market, were being sold at the local market at Tk 400 to Tk 500.
   The retailers observed that the importers fixed up the price of those fruits according to their will, as consumers have hardly any idea about their costs.
   Thai Bangladesh Business Society sources said five business houses of the country imported those fruits and vegetables from Thailand.
   The import of Thai fruits and vegetables started three years back and at present, nearly 70 to 80 tonnes of 26 kinds of fruits and 13 kinds of vegetables were being imported each year.
   According to the latest statistics, a total of 4,854 kg of fruits and vegetables were imported through airfreight at the Shah Amanat International Air Port in September.
   The minimum declared custom value of those fruits and vegetables was Tk 15 and maximum was Tk 45, but its duty get increased by 70 per cent, with import and supplementary duties, in addition to one dollar per kg airfreight charge, revenue department said
   ‘In all, retail price of per kg imported fruit and vegetable is by no means more than Tk 250,’ said a customs official.
   In Wellmart, a posh department store in the city fruits and vegetables were being sold between Tk 250 and Tk 500.
   ‘Despite that there are huge demand for those foreign fruits and vegetables to the customers,’ said a sales officer of the store.
   However, the TBBS officials ruled out realisation of excessive price than actual cost.
   RK Faroqui Nazrul, an official of STB Asia Impex Bangladesh Private Ltd, the major importer of those fruits and vegetables said though the buying cost was lower, but selling cost was apparently higher, because of cargo fair, packaging and customs duty.
   Nazrul said though the airfreight tariff is fixed in Chittagong-Bangkok route, but on return route, most of the times, Thai Airways realised higher tariff.
   Thai fruits and vegetables, mostly Ram-Bhutan, London, honey dew, rock melon, sweet tamarind, capsicum, Thai cabbage, and Iceberg Lettuce are favourite to the local customers.

Nestle Bangladesh Limited recently launched a new pack size of NIDO 2.5 kg tin, adding to its existing NIDO products.
   Priced at Tk 1,300 the jumbo size pack, which is now available in the market, would provide extra convenience to the customers along with the nutritional goodness said a press release.
   The bulk product is imported from Australia and is packed in Bangladesh at to company's
   factory in Sreepur.
   According to the release, the quality of packaging process and hygienic standard is maintained uniformly in all the company factories across the world, hence the consumers would get the same nutritional value and quality standards as other NIDO products across the world.
   For further queries about the product, which is licensed under BSTI in Bangladesh, one can write to the Nestle Consumer Services, PO Box 11037, Uttara, Dhaka.

Private sector business activity around the world weakened last month as two hurricanes and domestic fuel price spikes sapped the dominant US service sector and offset rising output in other regions and sectors.
   The overall reading from surveys of some 10,000 executives in more than 20 countries fell to its lowest in more than two years and included signs of spreading price inflation from high energy and raw material costs.
   But this index of world business activity was swamped by an onset of hurricane-related gloom in the US service sector.
   Manufacturers in most countries—including those operating US factories—steamed ahead in September despite the sky-high energy costs, and service firms in Europe and Asia also accelerated during the month.
   Hurricanes Katrina and Rita ripped through the US Gulf coast and its oil infrastructure in late August and September, sending US retail gasoline prices soaring above $3 per gallon and boosting home heating and natural gas prices too. A global all-industry index compiled by JP Morgan from all the national surveys fell to 54.8 in September—its lowest since July 2003 — from 58.1 the previous month.
   The drop in the index, which remained above the 50 level that divides economic expansion from contraction, masked a sharp acceleration in the global manufacturing subset index to its highest in more than a year.
   But there was concern across the globe about sharp rises in the cost of energy and raw materials, a development analysts say will keep central banks on guard for consumer price inflation and increase pressure for higher interest rates.
   The global input prices index jumped almost five points to 66.5, spurred by a 14-point leap in US non-manufacturing prices to the highest in that survey’s 8-year history.
   After US manufacturers surprised earlier in the week by reporting a surge in output related to Gulf reconstruction, the energy-sapped drop in the service sector was also surprising.
   The US Institute for Supply Management said on Wednesday that its index of non-manufacturing companies—which includes businesses from airlines to restaurants to insurance brokers to hotels—dropped almost 12 points to 53.3.
   That was far below Wall St estimates of a modest decline to 61.0.
   ‘It suggests natural disasters tend to initially boost manufacturing production but reduce service sector activity,’ said Ian Morris, US economist at HSBC.
   But Morris cautioned about drawing too many conclusions from the non-manufacturing survey, which he said was a wide cache of company sectors with very different readings.
   Construction, communications, mining, insurance and retail all reported relatively high growth rates, he said, while agriculture, entertainment, real estate, business services and finance reported big contractions.
   But price rises everywhere were of concern, he said, because they went beyond energy price spikes alone.
   Citing rising air fares, building materials, capital equipment, car rentals, shipping charges and hotel rates, Morris said it was all likely to make the Fed nervous.

China is poised to unveil a new roadmap for the world’s seventh-biggest economy that scraps a long-standing policy of faster growth in favour of improving social services and curbing widespread environmental devastation.
   Chinese Communist rulers are expected to hammer out details of the 11th Five-Year Plan at a party plenum that begins on Saturday and which is expected to enshrine a policy shift towards a ‘green GDP’ that has taken place over the last two years.
   The party aims to redirect policy from growth for growth’s sake to a more sustainable model that better addresses widespread inequities reflected in a widening gap between rich and poor and which threaten social stability.
   ‘The new strategy should formally reverse that bias and focus on how to maintain resource sustainability to prevent a rapid depletion of natural resources like oil, coal and water, while slowing down industrial pollution,’ said Jun Ma, an economist with Deutsche Bank in Hong Kong.
   The shift could have a far-reaching impact since China’s rapid growth and integration into the global economy have transformed it from an economic backwater into a major influence on world trade.
   It is unlikely the blueprint, expected to be unveiled on Tuesday at the conclusion of the closed-door plenum, will contain specific policy prescriptions.
   But it will spell out that China’s priority will be to deliver better lives to people left out of the country’s economic boom, a sector of society that has been a focus of President Hu Jintao and Premier Wen Jiabao since they took over the party in November 2002 and the state government in 2003.
   China’s top leadership worry that hundreds of millions of impoverished farmers and migrant workers are a potential source of social instability that threatens the party’s 56-year-long monopoly on power.
   Cementing the catchphrase of creating an ‘all-around well-off society’ in the plan would pave the way for higher government spending on social services such as health care, education and farm subsidies.
   It will also lay the political groundwork for pushing through controversial proposals such as new taxes on vehicle purchases, fuel and other resources, ideas that policy makers have hotly debated.
   The government also has been drawing up a ‘green GDP’ system that would hold local officials accountable not only for economic growth but for environmental protection and conservation.

The combination of rising price pressures from wages and commodities means US central bank policy-makers must be specially wary of inflation, a top Federal Reserve policy-maker said on Wednesday.
   The remarks by Thomas Hoenig, president of the regional Kansas City Fed bank, buttressed other recent commentary implying Fed officials think interest rates will keep rising.
   Hoenig told business leaders in Casper, Wyoming, that, even before hurricanes Katrina and Rita struck the refinery-rich Gulf Coast, energy prices were starting to rise. Since then, gasoline and natural gas prices have spiked up.
   ‘I’m not concerned that we’ll have a massive breakout (in inflation) but it’s important to know what kinds of pressure are in the economy and what we have to be alert to ... so that we can in fact sustain long-term growth,’ Hoenig said.
   He noted rates for US productivity—hourly output per worker—were easing to around 2.5 per cent from as much as 4 per cent to 5 per cent in recent years. Higher productivity is associated with rising living standards while lower rates mean it costs more to produce the same amounts of goods.
   ‘So we’re seeing unit labour costs rise at about a 4 per cent rate and that’s the highest it’s been since year 2000, so we have some wage pressures that look to be entering the economy at this point,’ Hoenig said.
   In addition, he noted that prices for commodities like steel and cement were likely to be pushed up by the rebuilding after hurricanes Katrina and Rita.

The US government accepted an industry request to consider quotas on another 13 types of Chinese textile imports, officials said.
   The inter-agency Committee for the Implementation of Textile Agreements (CITA) said it would rule in January on whether quotas are needed against the 13 categories because of ‘market disruption’.
   The decision covers a possible extension to quotas on nine Chinese categories that were due to expire at the end of this year, and new quotas on four other categories not previously under scrutiny.
   US textile groups welcomed the decision, which came after Sino-US textile talks here failed to make headway last week.
   ‘We are pleased that the US government accepted these petitions for review,’ said American Manufacturing Trade Action Coalition executive director Auggie Tantillo.
   ‘If China is unwilling to agree to a reasonable comprehensive textile deal that covers all of these products, we urge the US government to approve these cases and implement safeguards in a timely and effective manner,’ he said.
   With the addition of the 13 new cases, CITA is now debating quotas on imports of 27 types of Chinese garments and textiles.
   The United States and China plan another round of talks on their drawn-out battle to forge a comprehensive agreement on textiles trade this month.
   In the absence of such an agreement, Washington has been slapping quotas on individual categories of Chinese imports following US industry complaints that China’s garment shipments have exploded this year.

Financial intelligence experts from 47 countries met in Sofia to discuss efficient ways to curb money laundering in a joint effort within the international organization of financial intelligence services Egmont Group.
   Egmont Group unites ‘financial intelligence services from 104 member countries who monitor financial resources that might have possibly come from organized crime or been linked to terrorism,’ Bulgarian Financial Intelligence chief Vassil Kirov told AFP.
   ‘In order to have a preventive role they have to be able to quickly share information among themselves, and not be delayed due to restrictions’ like banking secrets, he added.
   Kirov also praised ‘progress’ in the body since it was first created in 1995. ‘Four or five years ago we were denied information from certain countries that preferred to remain under ‘the jurisdiction of fiscal preferences’,’ as they called their refusal to share data, he said.
   But the group insisted Wednesday that all its members adjust their financial systems’ legislation to permit the speedy exchange of information that can be analysed and passed on to the police and the prosecutors if they suspect an illegal money operation.
   The talks were scheduled to continue Thursday among the almost 100 representatives from 47 countries, including Canada, Japan, Russia, all 25 EU member states and the United States.

The European Central Bank held its key interest rates steady as expected at its regular monthly policy-setting meeting.
   The ECB said it held the minimum bid rate for its regular refinancing operations steady at 2 per cent, where it has been since June 2003.
   And it also held its two other key rates—the deposit rate and the marginal lending rate—unchanged at 1.00 per cent and 3 per cent respectively.

The Bank of England froze its key interest rate at 4.50 percent on Thursday, the central bank announced.
   The move had been widely forecast by analysts, despite recent data that showed the annual rate of British economic growth hit a 12-year low during the second quarter.
   As is customary when no change is made to the “repo” rate—the rate of interest at which the Bank of England (BoE) lends to commercial banks—it gave no explanation for the decision following two-day deliberations.

Travel bookings in Asia rose 19 per cent in August from a year ago, suggesting another banner year for the industry despite high oil prices, a leading air ticketing and reservations agency said Thursday.
   Intra-Asian travel continued to power the increase, accounting for over 81 per cent of bookings which reached more than 4.41 million, Abacus Interna-tional said in a statement.
   ‘As we said at the beginning of the year, 2005 looks to be another record year for Asia-Pacific travel as regional governments place more emphasis on developing tourism infrastructure and cultivating the tourist dollar,’ said Abacus president and chief executive Don Birch.

Indonesia’s fuel prices have room to rise even after a recent cut in subsidies and its central bank should further tighten monetary policy if needed to fight inflation, the Asian Development Bank said Wednesday.
   Ifzal Ali, the ADB’s chief economist, said that retail gasoline prices in Indonesia, as of November last year, were among the lowest in the region.
   ‘In the case of Indonesia, while they said they have increased gasoline prices, they’re starting from a very low level,’ Ali told Reuters in an interview during an official visit to Japan.

Asian stocks tumbled Thursday with heavy selling gaining the momentum amid the prospect that interest rates in the United States will head higher than anticipated, dealers said.
   They said no markets were exempt from the sell-off with investors being forced to change tack on the belief that the current cycle of rising interest rates would soon end.
   That belief had held until Tuesday when three US regional Federal Reserve bank presidents warned the central bank would likely continue raising short term rates to keep inflationary pressures at bay.
   Alarm bells over inflation have been ringing since Hurricane Katrina struck at the end of August, causing severe damage to American oil interests and sent the price crude to record levels, which is now feeding into inflation.
   That coupled with weak US economic data routed Wall Street overnight and share markets in the Asia Pacific region followed suit.
   Japan, India, South Korea, Australia, and Hong Kong all slumped more than two percent while Singapore and New Zealand were not far behind. Less substantial falls were registered elsewhere.
   Chinese markets remained closed for national holidays.

Malaysia to make biofuel mandatory
by 2008
Malaysia, the world’s top palm oil producer, will make a palm oil-based fuel a mandatory additive at petrol pumps by 2008, a newspaper said on Thursday, part of government efforts to cut its diesel subsidy bill. With crude oil prices expected to remain high, Malaysia is seeking to encourage national use of a biofuel that is made from 95 per cent diesel and 5 per cent processed palm oil. Legislators are expected to pass a law next year to introduce the new product, and give motorists a year to try it out before making it mandatory, Plantation Industries and Commodities Minister Peter Chin told The Star. Malaysia consumes up to 190,000 barrels per day (bpd) of diesel and gas oil. It produces less than 14 million tonnes of palm oil a year, of which more than 12 million are exported. Adding 5 per cent biofuel to diesel at pumps will help cut 500,000 tonnes of diesel a year, or about 10,000 bpd, officials have said.
— Reuters

Parmalat resumes trading on Milan
stock market
Italian diary giant Parmalat rose from the ashes of one of Europe’s biggest financial scandals to begin trading again after a nearly two-year suspension. Trading in Parmalat shares on the Milan stock market opened at 3.15 euros, settling to just over 3.0 euros within the first hour. Since taking control of the then-stricken company when it was delisted in 2003 after a 14-billion-euro ($17 billion) hole was found in its accounts, government-appointed administrator Enrico Bondi has cut the workforce from more than 30,000 worldwide to its present 20,000 and pared down its product range to concentrate on its core dairy business.
— AFP

Wal-Mart says hurricanes to
hurt profit
Wal-Mart Stores Inc on Thursday said Hurricanes Katrina and Rita would likely trim 1 cent per share from its quarterly profit, but it still expects earnings in the range of 55 to 59 cents per share. The US-based world’s biggest retailer confirmed that its September sales rose 3.8 per cent at US stores open at least a year, helped by demand for cleaning supplies, basic apparel and hardware as victims recovered from the hurricanes. Wal-Mart, which had provided an initial sales figure on Saturday, said total sales for the five weeks ended September 30 rose 9.7 per cent to $28.24 billion. For October, Wal-Mart said it expects a 2 per cent to 4 per cent same-store sales increase.
— Reuters

GE raises full-year outlook
General Electric Co said on Thursday its third quarter earnings will reach the high-end of its forecast, and it raised its estimates of full-year profits. GE estimated third quarter profits of 44 cents per share, matching Wall Street estimates, and said it sees 2005 profits in a range of $1.81 to $1.83 per share, raising the bottom range of its forecast by a penny. That compares with analyst forecasts of $1.82, according to Reuters Estimates. The company also said it will increase its share buyback program by $1 billion to $4 billion this year.
— Reuters

JC Penney Sept same-store sales up
JC Penney Co Inc said on Thursday its September sales at department stores open at least a year rose 1.4 per cent, and the company raised its third- and fourth-quarter profit forecasts because it has repurchased shares faster than expected. The Plano, Texas-based company said total department store sales rose 1.9 per cent to $1.25 billion in the five weeks ended October 1, while catalog and Internet sales were up 0.4 per cent.
— Reuters

Xerox sees charge from litigation, storms
Office equipment maker Xerox Corp said on Thursday it expected third-quarter charges of about $159 million related to litigation matters, Katrina losses, and an accounting change. On a per-share basis, third-quarter results will be hurt by 12 cents, the company said. Xerox plans to release earnings on October 21.
— Reuters

Apple expected to unveil video-enabled IPod
A new video-enabled iPod is expected to be unveiled by Apple Computer Inc. during a press conference next week — though the maverick company is masterful at foiling such predictions. Apple e-mailed invitations that included the words ‘One more thing...’ printed over a background photo that appears to depict theater curtains. The company, which has pocketed a fortune from the sales of its iPod digital music player, said nothing else in the e-mail, other than to say the press event would take place in San Jose on Oct. 12.
— AP

Viacom to split CBS, cable entertainment
Shareholders of Viacom Inc will get half a share of the new Viacom and half a share of CBS Corp for each share they currently hold when the media conglomerate splits itself into two companies, the company said Wednesday. Viacom detailed terms of its plan to split itself into two public companies in a filing with the Securities and Exchange Commission but didn’t give a specific date for when it expects to finish the breakup. New York-based Viacom plans to group its cable and entertainment businesses under the Viacom name and put its traditional broadcasting units under the CBS name.
— AP

AOL to buy Weblogs Inc network
America Online Inc has agreed to buy Weblogs Inc, a network of Internet sites focused on niche topics ranging from food to gadgets, for around $25 million, a source familiar with the deal said on Wednesday. AOL, a unit of Time Warner Inc, could announce the acquisition of New York-based Weblogs Inc as early as Thursday, the source said.
— Reuters

Siebel sees Q3 revenue above estimates
Software maker Siebel Systems Inc, which last month agreed to be acquired by Oracle Corp, said on Wednesday it expects third-quarter revenue of about $346 million, just above average Wall Street estimates. The company also said it incurred about $12 million in pretax restructuring and other charges in the third quarter related to the consolidation of leased facilities. For the quarter the company said it expects license revenue of about $112 million and maintenance revenue of about $125 million. In September Oracle said it would buy rival Siebel Systems in a deal that valued the company at $5.85 billion.
— Reuters