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■ Tobacco
Cuban cigars survive storm
Production of Cuba's world-famous Cohiba and other exclusive cigars will not be affected by Hurricane Ivan's passage along the island's western tip earlier this week, says the Cuban-Spanish firm that markets the cigars abroad. "Damage to the Cuban tobacco sector has been very limited," primarily because planting season doesn't begin until next month, Habanos SA said in a news release issued late Thursday. "The supply of tobacco for Habanos production will not be affected, and the next harvest will start in normal conditions," the company added. Tobacco growers had earlier indicated that they believed damage from the storm would be minimal. Ivan swept past Cuba's western tip on its way to the Gulf of Mexico late Monday, drenching the Pinar del Rio province -- the heart of Cuba's tobacco-growing region. There were no tobacco plants in the fields.

■ Branding
Retailer sticks with FCUK
UK fashion chain French Connection said last week it was sticking with its controversial FCUK brand, as it announced a 12 percent increase in first-half profits. The clothing retailer, which saw its irreverent FCUK logo come under fire from the fashion industry this summer, said UK retail conditions last month had been "unusually poor," however, and its performance had been disappointing. Business in Europe, North America and Asia had been good. French Connection reported profit before tax and goodwill of ?15.4 million (US$27.7 million) for the six months ended July 31, compared with ?13.7 million in the year-earlier period. The chain's shares were hit in July after fashion retail bible the Drapers Record quoted a stockist as saying the FCUK brand looked "tired and tacky." Press reports later said it was scaling back the brand.

■ Foreign credit
S&P raises Brazil's rating
Standard and Poor's Ratings Services on Friday raised Brazil's long-term foreign currency sovereign credit rating in response to improvements in some of the South American nation's economic indicators. The long-term credit rating was raised to B plus, up from BB minus. "The upgrade reflects marked improvement in Brazil's external liquidity position and improved fiscal dynamics amid strong macroeconomic policy management," the credit agency said. Brazil's long-term local rating remained at BB and its short-term sovereign credit rating stayed at B.

■ Outsourcing
Offshoring has little effect
US companies sending jobs overseas are not having a big impact on the total job market, UBS Investment Research chief economist Maury Harris said in a study last week. Between 2001 and last year, increased international outsourcing didn't have much effect on overall jobs or wages, even though individual workers were affected. This suggests that investors shouldn't worry even though the trend of turning to foreign workers may continue. In the new UBS study, Harris says the US economy adds new jobs in some areas even as it loses them in others. His study estimates that only about 400,000 job cuts annually are due to foreign outsourcing, out of a total of about 21 million unemployment claims each year. Further, he finds that about 50 percent of displaced workers tend to find new jobs within five weeks, and most within six months, although many take substantial pay cuts.

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