Print

Mail

wiki links

World Business Quick Take

■ US economy
No inflation worry seen
Chicago Federal Reserve President Michael Moskow said Monday he sees no "worrisome" inflation on the horizon that could prompt the US central bank to boost interest rates soon. Moskow reiterated the Fed's plan to be patient in raising US interest rates as long as inflation remains quiescent and hiring lags. "With inflation low, the Fed can be patient in removing its policy accommodation," he said in remarks prepared for a Chicago speech. "However, this stance cannot be maintained indefinitely." But there are few signs of pressure on labor and capital resources that would point to a "worrisome increase" in inflation, said Moskow. "While there is always the potential for imbalances in certain sectors, recent numbers confirm that inflation is still extremely low," he said.

■ Security
Viruses cause more damage
Viruses and other computer attacks have worsened in the past year and have become more costly for firms to deal, according to a survey released Monday. The survey of executives at 300 companies and government agencies worldwide with at least 500 computers "shows conclusively that despite increased spending, both the perception and the reality of the malicious code problem continues to worsen," said the security firm TruSecure, the survey organizer. The survey also found "disaster recovery costs" increased 23 percent over the past year to almost US$100,000 per organization per event. "The re-emergence of `outbreak events' and the success of mass mailers in early 2004 illustrates that organizations are not making enough progress in their defense against malicious code," said Larry Bridwell at TruSecure's ICSA Labs and author of the survey.

■ Operating systems
Linux popular in Brazil
Linux's open source operating system has made significant inroads in Brazil, with more than three quarters of companies surveyed using it to handle at least one application, according to a study released Monday. E-Consulting Corp said 78 percent of large and mid-sized companies surveyed were using Linux software on their servers to handle at least one application. "Brazil today has one of the world's biggest open source movements, so it's natural that more companies are experimenting with the platform," said Daniel Domeneghetti, director of E-Consulting Corp. The survey found that of the US$19 billion Brazilian companies expect to invest annually in information technology, 38.5 percent or US$7.3 billion was destined for work with Linux.

■ South Korea
Consumption taxes lowered
The South Korean government has lowered special consumption taxes on cars, air conditioners, projection televisions and other leisure products to stimulate consumption, officials said yesterday. The cut will run until the end of the year, with tax rates reduced by up to 30 percent, the finance and economy ministry said. Tax cuts for cars will be capped at 20 percent because auto sales account for the bulk of state excise tax revenues, it said. Cars with an engine capacity of more than 2,000cc will have their tax rates lowered from 10 percent to 8 percent. Taxes for air conditioners will be slashed from 16 percent to 11.2 percent.

This story has been viewed 1818 times.