World Trade News Summary

During this week several significant events transpiredlargest car industry worldwide, expressed its positive
particularly in the industrial world. These changes haveoutlook regarding its business. Earlier this year, the
influenced directly or indirectly not only the growingautomaker released its latest goods and empowered
global trade, but likewise the developing economy ofits competitiveness in certain areas. The company is
countries worldwide. On one hand, some events haveexpecting its sales to increase in 2007 and
positively contributed to the various sectors of2008.Meanwhile, General Motors stated last Monday
international or local economy and they serve asthat it would sell back 17.4% of its share to Suzuki
harbingers of more future developments. On the otherMotor Corp. This decision was made by the large U.S
hand, there were also events that have negativelycar industry to boost its balance and improve its
impacted and in fact continue to threaten the variousshared in the market. Moreover, GM has also been
sectors of both international and local trade andplanning to sell a significant percentage of its shares
economy.Oil Price Continues to Improve in the Globalfrom General Motors Acceptance Corp, its financial
MarketThis week has been full of good news for oildepartment. Among the rumored bidders is the
traders. Last Monday, oil rate plummeted by $2. AsNorinchukin Bank. Currently, Norinchukin is one of the
such, U.S crude oil dipped down to $1.6 thus settling toleading financial companies in Japan. Other companies
a rate of $62.41 per barrel at the Merchantilethat expressed their desire to bid were Citigroup and
Exchange (New York). The decrease also calmedCerberus Capital Management. Citigroup is, currently,
down a 4-day protest prompted by the oil price, whichthe biggest bank in the United States.Global Trade
previously raised up to $63.92 per barrel. Meanwhile,Witness Some of the Most Important TrialsFinally, the
the rate of oil in Nigeria continued to increase. This wasfour former administrators of Ahold faced the court on
due to the recent discovery of an oil pipe leak and thecharges of fraud. Ahold was considered as the
militant protests, which forced Nigeria to cut a largebiggest supermarket and retailer in the world.
percentage of its oil production and supply. AlthoughMoreover, it served as an icon of success and stability
the situation of Nigeria affected the international oilin the business world. Yet this reputation was tainted
trade, it did not keep the rate of oil from improving. Thewhen its former directors admitted to have falsified
significant decrease has been attributed to currentdocuments thus misleading several investors including
negotiations with Iran regarding its plans for nuclearthe company's own accountants.Microsoft Corporation
production.Last Tuesday, the oil rate slipped further byalso sought last Friday the aid of the U.S federal
2% ($1.26). Hence, U.S crude oil settled to a price ofcourts in order to pressure IBM, Novell Inc., Oracle
$61.58 per barrel. Meanwhile in London, brent crudeCorp., and Sun Microsystems Inc. in order to hand
decreased by 1.32 cents and remained at $61.02. Thecertain documents necessary in its dispute against the
same trend was followed by the rest of the oil marketEuropean Commission. In 2004, EC fined the giant
worldwide. Oil value further improved due to Nigeria'scompany after discovering that Microsoft used its
statement to restore a large part of its production andposition to damage the other developers of softwares,
supply and to OPEC's decision to maintain out near thewhich are vital for printers, pass log-ins, and file access.
maximum level. Nigeria would increase its output byThe company, which did not yet fulfill its sanctions
75% in the coming weeks. The OPEC officials, too,according to the EC, asked the case to be tried in
said that they would keep oil production and supplyLuxembourg. It was found out though that the other
close to the limit in order to avoid gaps and preventevidences asked by Microsoft pertained to the internal
the oil price from increasing.After the Energyarchives of the EC subject to its own rules and
Information Administration (EIA) released its report thatnorms.Netac Technology, based in mainland China, also
crude oil inventories rose beyond the expected ratesmade historical headlines last month after charging U.S
during the past 7 years, the oil rate slipped further lastcompany PNY Technologies for infringement. Although
Wednesday by 2.5%. Based on the report, thethe news came as a surprise for many Americans,
inventories rose as high as 6.8M barrels during the pastsome analysts consider it as a harbinger of future
week. The results exceeded the expected rate ofpossibilities in the technological industry. Many U.S and
1.6M barrels. Analysts added that the decision ofother foreign companies were also expecting that
OPEC to maintain the oil output close to the limit alsoChina would finally intensify its fight against piracy after
contributed to this improvement. Another factorexperiencing the need to protect its own products and
considered was Iran's statement to maintain antrademarks. Recently, China has received foreign
adequate oil production and supply amidst thecomplaints particularly a warning from the Washington
negotiations regarding its nuclear plans.Severalregarding the widespread piracy in the Asian
Partnerships Yield More Improvements in the Worldcountry.U.S. Encounter Recommendations and
TradeAT&T Inc. disclosed last Sunday its decision toFeedbacks in Trade and InvestmentRecently,
acquire BellSouth Corp. for around $67B. This movetrademark experts strongly emphasized the
was part of AT&T's plan for further expansionresponsibility of American Business to register their
especially in the southeastern region of the U.S. Thenames immediately in China. This was necessary in
agreement between the two companies would thenorder to avoid falling as preys of brand squatters.
bring Cingular Wireless, the leading wireless phoneStephen Baker, who works at Baker & Rannells as a
company in the U.S, under the sole ownership oftrademark lawyer, stated the increase of brand
AT&T. The deal would be completed within the spansquatting cases. Alarmingly, some of these brand
of one year. Although the transaction would need thesquatters even successfully obtained a huge amount
approval of the anti-trust administrators including theof cash from individuals or big time companies that
Federal Communications Commission, analystssought to maintain and fully own their web domain
commented that the process would probably notname. He commented that regardless whether U.S
encounter any opposition.Upon the release of thefirms have future plans to expand in China, enlisting
news regarding AT&T's acquisition of BellSouth, thetheir trademark was necessary.The interference of
stocks at the European telecom market significantlythe U.S Republic Senators against the Dubai Ports
improved. The European division of DJ StoxxWorld also roused concerns that it would affect an
telecoms rose by 2.2% thus ensuring more stability for$8B investment of UAE into the U.S regarding an
2006. BT earned as high as 4.3% up to a 7-monthearly-warning system. Although the deal was already
pence. Both the French and the Dutch telecomapproved previously, the protest from the senators
improved by 2%. Vodafone increased as high as 4.7%pushed the government to make another review
to a close 2 month 127.20 British pounds. The news ofperiod. But businessmen and analysts particularly the
the acquisition excited several international telecomAmerican Business Group of Abu Dhabi (ABG) based
companies thus leaving positive results in this particularin UAE stated that stopping the agreement could
sector of trade.Meanwhile in the gas industry, Lindeaffect the decision of Arabs in investing their money
AG, a leading supplier of medical and industrial gasesinto the country. As such, the organization would be
and producer of warehouse machinery, agreed to paysending its representatives to talk with some 120
8.2B pounds ($14.$B) in order to acquire its rival, theRepublican Senators.China Faces Several Issues
British BOC Group. According to analysts, aSignificant to its Economy and Position in the World
counter-bid to buy BOC was least expected due toTradeAccording to reports, several trading partners of
the pressure in the entire gas trade and theChina might raise their complaints against the country
competitive amount proposed by Linde. The acquisitionat the World Trade Organization. The move would be
further boosted the assets and profits of the Germanpart of the traders' objective of pushing Beijing in order
company and placed it to the top place along withto effectively implement the international rules of trade.
French Air Liquide as a leading gas industryAccording to a U.S senior official, several trading
worldwide.Amidst the planned agreement ofpartners of China may raise their complaints against
partnership with Arcelor, the Mittal family was rumoredthe country at the World Trade Organization. The
to lower its voting rights from 10-2 down to 2-1. Thismove would be part of the traders' objective of
step would enable the Mittal clan to earn the supportpushing Beijing in order to effectively implement the
of many large investors and to still maintain a largeinternational rules of trade. James Mendenhall, the
percentage of voting stake. The leading steelgeneral adviser for the office of the United Sates
company though denied those reports and stated thatTrade Representative commented that the efforts of
it would not precede the possible result of itsChina to fight piracy was not yet enough since the
negotiations with Arcelor, which is based inproblem has continued to spread and affect other
Luxembourg. The partnership though encounteredforeign industries.Meanwhile, John Snow, the Treasury
several disapprovals thus causing the stocks of bothSecretary, also said that China needed to initiate more
companies to decrease.A month ago, Whirlpool Corp.changes in its currency. He added that the need for
also disclosed its negotiations in order to buy Maytagmore flexibility in its currency was necessary since its
Corp. Although both companies have not yet arrivedrole in the international trade was expanding due to its
at a decision, the proposed agreement has beengrowing economy. Snow commented that promoting
opposed by the anti-trust division of the Justiceequal trade in the international market was a common
Department. Recently, the sector has begun focusingresponsibility of all nations involved.Cuban Tobacco and
its attention to the laundry appliance industry. LawyersSpirits Industry to Expand in RussiaExporters of Cuba
from the anti-trust department have initiated therum and cigarette announced their plan to establish a
process by gathering the testimonies of various rivalFloridita bar in Moscow, Russia. The chain of
companies regarding the possible impact of therestaurants has earned its fame through the years by
merging to the entire appliance market. The deal wouldaccommodating many Hollywood celebrities and other
amount to $1.7B thus giving birth to the largestpersonalities especially in 1940's and 1950's. The said
appliance manufacturer in the global market. Due tobar would be a blend of a fine restaurant, a cigarette
the opposition, the shares of both companiesshop, and great Cuban music. The opening of the bar
decreased.Nike Inc. which is the number one athleticwas hoped to improve the trade of Cuban tobacco
shoe producer worldwide, was rumored to buy Puma.and spirits in Russia.New Vaccine May Prevent Ear
The company denied the reports though and furtherInfection among ChildrenGlaxoSmithKline Plc has
supported its statement by saying that it expectsrecently discovered a powerful vaccine that could aid
more developments and expansion in its own productsin the prevention of acute otitis media. The ear
particularly with goods related to soccer sports. Nike,infection is among the common health problems that
which would be sponsoring the 2006 World Cup inarise during the childhood phase and has led to the
Germany, said that it would launch a wider advertisingloss of the hearing capacity of many kids worldwide.
campaign compared to its efforts during the WorldYet, the new treatment developed by the
Cup in Asia in 2002.Automobile Companies Seekpharmaceutical company brings plenty of promises to
Ways to Stabilize and Improve Their MarketAlthough amany children who are at risk of ear infection. The
decline is expected in the car industry next year,medicine called Streptorix is still subject to the approval
automakers are moving to stabilize and improve theirof both the European and the U.S regulatory board.
sales and profits. Particularly, DaimlerChrysler, the 5th