CA Inc announces layoffs
Management software firm CA Inc announced on Monday that its profits plummeted 64 percent in its latest fiscal quarter and that it would layoff 1,700 workers worldwide to increase efficiency. The company formerly known as Computer Associates reported US$35 million, or US$0.06 per share, in profit in the quarter ending June 30 as compared to US$97 million, or US$0.16 per share, in the same quarter last year. The layoffs would take place during the coming six months and approximately half of them would be in North America, according to CA, which is based in Islandia, New York.
EEC mulls customs union
Leaders of six ex-Soviet states were to begin a three-day meeting yesterday to discuss proposals for forming a customs union and a common energy market. Russian President Vladimir Putin is hosting the meeting in Sochi, a Black Sea resort city. Attending are the heads of state of Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. The countries are members of the Eurasian Economic Community (EEC), a grouping that aims to restore economic ties lost after the 1991 Soviet collapse. Proposals to be discussed include water energy regulation in Central Asia and setting up a Eurasian hydroelectric consortium.
Woman to head PepsiCo
PepsiCo Inc said on Monday that chief financial officer Indra Nooyi will replace Steven Reinemund as chief executive officer of the soft-drink and snacks company, making her the No. 2 female CEO in the Fortune 500. With her Oct. 1 appointment, Nooyi takes her place in an elite group of 11 female CEOs running Fortune 500 companies. Patricia Woertz at agricultural processor Archer Daniels Midland Co ranks first. ADM is ranked 56th in the Fortune 500, while PepsiCo, the world's second-largest soft-drink company after Coca-Cola Co, is ranked 61st. Nooyi, 50, has been with the company since 1994 and has been CFO since 2001. She will be the fifth CEO in Pepsi's 41-year history.
Malaysia to sign EU deal
Malaysia expects to seal an air service agreement with the EU by the end of the year, Transport Minister Chan Kong Choy told a news agency yesterday. Under the pact, European airlines can fly between Malaysia and any of the 25 EU countries. So far, Singapore is the only Asian country to ink such a deal with the EU. The agreement removes nationality restrictions in previous bilateral agreements with individual EU members allowing, for example, a German carrier to fly between Malaysia and London or Paris.
China's GDP grows 10.4%
China's economy expanded faster than expected in the first six months of this year and the World Bank yesterday has raised its forecast for economic growth to 10.4 percent, up from an earlier estimate of 9.5 percent. China's economy grew 11.3 percent in the second quarter, compared to the same period last year, the highest in over a decade, reported the bank in Beijing. The bank expected economic expansion to slow to 9.3 percent next year. Exports are expected to rise this year 20.8 percent compared to last year, while all imports are expected to reach 18.4 percent, according to the bank.