This Week's International Trade Updates

 This Week's International Trade Updates

Posted by Vasily Klimko on February 20, 2006 

Some persons in the entertainment, tech, business, economy, and trade industries or sectors throughout the world got good news and some got bad news in this week's news headlines.

To start with, word on the street is that the tech sector is doing rather well.

The 3GSM World Congress, which took place in Barcelona and was attended by the three largest cellular phone technology companies globally (Nokia, Sony Ericsson, and Motorola), is evidence of the thriving technological industry. At the exhibition, these businesses showcased their newest wares, the majority of which made use of cutting-edge 3G technology. Moto unveiled ROKR. Nokia 6136 is set to be released, according to Nokia. A new phone and music player called the K610 has been announced by Sony-Ericsson. Additionally, a partnership in developing mobile television technology for cellular phones will be formed by Sony Ericsson and Nokia.

Nonetheless, there are customers who, in pursuit of savings on last year's technology, choose not to upgrade to the newest model. But that will not happen this year since manufacturers and retailers can now easily share sales and inventory data, so stock is kept low. However, if the buyer is willing to put in the time and effort to learn about the technology, they can still receive the greatest deal.

Another event that happened last weekend in Turin, Italy was the twentieth Olympic Winter Games, which attracted a lot of businesses. The International Olympic Committee oversaw the partnerships between businesses and the Turin municipal authorities. Advertising its product on the uniforms of athletes competing in the event, flooding television slots with commercials, and covering the venue with ads are all ways they want to achieve international attention.

Business partnerships, layoffs, and acquisitions have all been announced this week.

Volkswagen has declared that between 2006 and 2008, 20,000 jobs will be eliminated. In the midst of intense competition and falling markets, they expressed a desire to strengthen their position in the market. Shares of Volkswagen soared to nearly a three-year high, despite the fact that the decision to lay off workers disappointed investors. Additionally, the firm anticipates a 61% rise in profit.

Until 2011, the Toy Company Lego Group and Lucasfilms Ltd., proprietors of the Star Wars franchise, will remain partners. Lego was granted the rights to manufacture Star Wars toys in 1999. When "Star Wars Episode 1: The Phantom Menace" came out, Lego made almost $400 million.

In the next months, this service will be launched by Hello LLC, MySpace's new owners, in conjunction with SK Telecom and Earthlink, Inc. Mobile phone access to MySpace is a new feature that the firm is going to give its members. Along with the debut of MySpace's mobile phone access service, Pantech and VK's 'Hero' and 'Kickflip' phones will also be released.

The goal of the new partnership between Nokia and Sanyo Electric Co. is to create mobile phones that use 3G and CDMA chips. While Sanyo is hoping to get out of its financial bind, Nokia is targeting the American and Japanese markets.

Arcelor intends to thwart Mittal Steel's aggressive bid by raising its payout by 85 percent. Arcelor has already hired investment banks to come up with a defensive strategy after rejecting Mittal's bid. Nevertheless, the European Commission will closely examine Mittal in the event that the acquisition were to occur.

But there is a business that got caught up in a knot but has since gotten out of it. Google has developed a search engine just for China and has pledged to follow all rules set out by the Communist Party. By employing 30,000 government-appointed Internet censors, China hopes to prevent its residents from accessing websites that cover or address topics delicate to Chinese policy. Experts in the field were perplexed by Google's cooperation, but it was all part of their plan to corner the lucrative Chinese market, which has over 100 million Internet users.

Companies were impacted by the weather this week as well.

A snowstorm hit the Northeastern United States, including New York, on Sunday morning, causing property insurance claims worth thousands of dollars and causing businesses to close on Monday. With over $5 billion in property damage, Hurricane Katrina caused insurance companies a lot of trouble last September.

New Orleans, Louisiana is gearing up for Mardi Gras, the first celebration since Hurricane Katrina devastated the city in August of last year, killing and depressing many more. Even though the city's infrastructure is still being fixed, the event is anticipated to bring life back to the city by reviving their tourism business.

The United States' trade imbalance grew in 2005 due to rising oil prices and a surge in demand for imported goods, which drove up the price of crude to a five-month high of over $71 per barrel. Due to cheaper prices, Chinese products have a trading advantage, which poses a threat to US products as well as the US economy as a whole. The growing deficit has also caused concern in the White House.

But things are looking up in Europe, where market shares ended the day on an upward trajectory. Italian banking stocks surged on rumors of a merger or acquisition involving major international banks including Banco Bilbao Vizcaya Argentaria of Spain and Banque National de Paris Paribas of France.

A number of challenging concerns are also affecting international organizations.

Since1998, the European Union has banned the import of genetically modified foods, which the World Trade Organization claims is a rule violation. The three largest exporters of agricultural products in the world—the United States, Argentina, and Canada—filed a protest with the European Union over the prohibition. Friends of the Earth and other social-cause organizations, however, have spoken out against the WTO's latest decision. They argue that the six countries—Italy, Austria, Germany, France, and Greece—that have imposed the embargo have the right to decide for themselves.

Meeting for the first time this past weekend in St. Petersburg, Russia, the Group of Eight Nations—the most exclusive club of industrialized nations on the political and economic stage—discussed the effects of increasing oil prices on global economic development and energy supplies. Despite cutting off gas supply to Ukraine and all of Eastern Europe, Russia told the G8 that it will keep shipments of oil and gas at the same level this year. The US-perceived Palestinian Authority's new leadership and the potential spread of avian flu across Europe and Asia were among topics covered in the G8 summit.

Monday saw oil prices climb once again as a result of Iran's decision to resume uranium enrichment and sever ties with the UN's International Atomic Energy Agency. Iran is the world's fourth-largest oil exporter. Iranian cooperation with international inspectors has been sporadic, and reports indicate that the country is utilizing uranium to create nuclear weapons. The kidnapping of Royal Dutch Shell employees and demonstrations in Nigeria against multinational oil firms have further exacerbated the oil price crisis.

Iran has declared that it will resume its uranium enrichment activities and has severed ties with the United Nations' International Atomic Energy Agency. Iran is the world's fourth-largest oil exporter. This led to a resurgence in oil prices on Monday. Iranian cooperation with international inspectors has been sporadic, and reports indicate that the country is utilizing uranium to create nuclear weapons. The kidnapping of Royal Dutch Shell employees and demonstrations in Nigeria against multinational oil firms have further exacerbated the oil price crisis.

Reportedly, China is also making further moves in the global trade arena.

In order to meet their increasing energy demands, China has bought oil from African countries like Sudan, Equatorial Guinea, Chad, Angola, Gabon, and Algeria. On the other hand, the United States and other nations are worried because of their energy interests on this continent.

The two countries recently met in Canberra, Australia, in January to discuss the prospect of China purchasing uranium from Australia, with the goal of preventing the material's use in nuclear weapon production. Greenhouse gas emissions and the prospect of future Chinese nuclear industry resistance to international monitoring are among the disastrous implications that environmentalists and the majority of Australian residents are warning about.

The entertainment industry, on the other hand, is thriving.

Popular films that were either entirely or partially shot in New Zealand, such as Peter Jackson's "King Kong," the "Lord of the Rings" trilogy, and "Chronicles of Narnia: The Lion, the Witch, and the Wardrobe," contributed to the country's booming film industry. As a result, more and more money is going into making films in the area. Due to its beautiful landscapes and specific premiums that will help keep production costs down, Hollywood has decided to film here.

The annual list of the 100 wealthiest celebrities was published by Forbes magazine in 2004. The three most wealthy people in Hollywood were named Sir Paul McCartney, Sir Elton John, and Madonna. Additionally, it shows that the film and music industries are thriving. On the same list as the Eagles, U2, Greenday, The Rolling Stones, Celine Dion, 50 Cent, and Dave Matthews band are Kenny Chesney and Mike Tyson.

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