Sun, Jun 12, 2011 - Page 11 News List

Business Quick Take

Agencies

ELECTRONICS

Verizon-run iPad 2 recalled

Apple Inc said it was recalling an extremely small number of iPad 2 tablet computers to correct a manufacturing flaw that prevents some users from connecting to the Verizon Wireless network in the US. The recall only involves devices running on the Verizon network, said Trudy Muller, a spokeswoman for the Cupertino, California-based company, on Friday. She said the company will replace those tablets with new ones and declined to say how many users were affected. Some iPads were manufactured with duplicates of a unique number, known as the mobile equipment identifier, that is used to identify it when connecting with a wireless network, Muller said.

UNITED STATES

Budget could break US$1tn

The federal budget deficit is on pace to break the US$1 trillion mark for a third straight year, putting pressure on Congress and President Barack Obama’s administration to come up with a plan to rein in government spending. The deficit through the first eight months of this budget year totaled US$927.4 billion, the Department of Treasury said on Friday. Three years ago that would have ranked as the highest ever for a full year. Instead, it is running almost even with last year’s pace, when the deficit grew to US$1.29 trillion, and behind the 2009 deficit that hit a record US$1.41 trillion. The imbalance for last month was US$57.6 billion, compared with US$135.9 billion for the same month last year. However, much of that improvement came from a US$45 billion write-down in the estimated cost of the financial bailout program.

CHINA

Risk of ‘hard landing’: expert

The economy is at risk of a “hard landing” after 2013, as efforts to spur growth through investment cause excess capacity, said Nouriel Roubini, the New York University professor who predicted the financial crisis. “China is now relying increasingly not just on net exports, but on fixed investment” which has climbed to about 50 percent of GDP, Roubini said in Singapore yesterday. “Down the line, you are going to have two problems: a massive non-performing loan problem in the banking system and a massive amount of overcapacity is going to lead to a hard landing.” The nation faces a 60 percent chance of a banking crisis by mid-2013 in the aftermath of record lending and surging property prices, according to Fitch Ratings.

PHARMACEUTICALS

Novo Nordisk to pay US$25m

Danish company Novo Nordisk has agreed to pay US$25 million to settle allegations that it promoted the misuse of blood-clotting drug NovoSeven, the US Department of Justice said on Friday. Separately, the company will also pay a US$1.7 million settlement over allegations it encouraged fraudulent claims to be submitted to a government-run healthcare plan for two diabetes drugs, a top justice department official said. In a statement on its Web site, Novo Nordisk acknowledged both settlements, but said that in each case, the company had not admitted to any wrongdoing.

AUTOMAKERS

Ford to lay off 150 in Buffalo

Ford Motor Co will lay off 150 people from its Buffalo Stamping Plant on Sept. 5 because of the planned closing of one of two Canadian assembly plants it supplies. The layoffs were disclosed on Thursday in a notice to the New York State Department of Labor. Ford announced in November 2009 it would shut down its St Thomas Assembly plant near London, Ontario, because of a drop in demand for larger vehicles.

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