World Trends

WTC’s Rumble

Trying to resuscitate the US economy from the shocks of the September 11 attacks by skyjackers on World Trade Centre (WTC) and Pentagon, the federal reserve policy makers have slashed further down the benchmark federal funds rate to 2.5% and the discount rate to 2.0%. It is the second cut of the same size in 15 days, and the ninth since January 2001 when the funds rate was 6.5%.

Meanwhile an economist with Merril Lynch has predicted further cut by 50 basis points amidst predictions by other analysts that the reduction would help recovery in 2002, not right now.

The airlines companies worldwide seem to be the hardest hit so far from the September 11 incident, with one after another company reporting massive reduction in business and losses due to higher cost in terms of increased insurance bills. Though some countries have announced rescue packages or provided assistance to meet part of the escalated cost, Airlines are reporting reduced ticket sales due to security concerns as well as hike in ticket price to cover increased insurance changes. However, in USA itself, some airlines are reported as lowering price.

In one latest development, Swissair had to halt flights for its inability to pay the fuel bill. Together with that, Sabena (the Belgian state airline) in which Swissair has 49.5% holding had to file for bankruptcy and Crossair, another subsidiary of Swissair, was bought by two Swiss banks under a rescue plan.

Meanwhile, Kuwait Airways has announced reduction in flights to some Arab destinations, while Singapore Airlines had reported substantial slowdown in traffic – both in passenger and cargo. Cathay Pacific too has announced reduction in flights.

Penises Survey in India

Health officials in India are carrying out a survey of the penises of Indian males to help condom manufacturers produce right size of the product so as to reduce the problem of condom-bursting and rise in population.

Quoting a report of Indian Express daily, AFP says, digital cameras have been brought now under this project that was started in July. The cameras automatically find out the circumference and length of the penises upon clicking the button.

Holidays to Boost Economy

Unlike in Nepal where the suggestion is to reduce the number of holidays so as to avoid production loss, China has been granting long national holidays to boost the economy by encouraging people to go out and spend. The recent such a week-long holiday that ended on October 7, however, also revealed a serious flaw in the service sector of China to support such spending spree, say reports quoting People’s Daily, the official Chinese newspaper.

According to the daily, many people willing to travel were not able to do so because of inadequate transport services.

This was the seventh week-long holiday in China granted to the workers to boost spending and thereby lift the economy.

During the recent holidays, the number of long distance bus passengers rose 6% as compared to the same week last year, and train trips were up only 2%, reported People's Daily.

High Level Lobby for Merger

Both President and Finance Minister of France are reported lobbying EU officials to approve a merger between electric equipment groups Schneider Electric and Legrand. EU commission is fearing dominance of the new group to be formed by the merger.

The two companies merged in July with Schneider now holding 98.1% of Legrand.

Complied by NBA Desk

S’pore Shrinks

Seeing an unprecedented economic slowdown in the country continued for straight third quarter of the year, authorities in Singapore have forecast that the economy will grow between 0.5% and 1.5% in 2001 but hope for a revival in the second half of 2002.

Singapore grew 9.9% in 2000. The initial growth forecast for the current year was between 5% and 7%.

The country depends on exports - mainly electronics and computer components - for economic growth. A worldwide slump in demand caused Singapore’s goods producing sector to contract 15.2% in the third quarter of 2001.

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