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World Business Quick Take

■ ELECTRONICS

Palm lays off workers

Palm Inc, the troubled maker of Treo smart phones, laid off about 10 percent of its work force this week to cut expenses, according to a person familiar with the situation. The California-based company issued a statement on Thursday confirming some layoffs were made as part of a restructuring. The person said Palm, which has a worldwide staff of 1,150, was eliminating more than 100 jobs. Palm warned last week that it now expects to post a second-quarter loss of US$0.22 to US$0.24 per share, compared to its projection made in October of a loss of US$0.01 to US$0.03 per share.



■ BANKING

Citigroup to absorb SIVs

Citigroup Inc said it plans to assume control of the seven structured investment vehicles (SIVs) the bank advises to help them repay their debts. Citigroup will provide a "support facility" for its seven SIVs with investments totaling US$49 billion and incorporate them onto its balance sheet, the bank said on Thursday. The bank previously said it had no plans to bring the SIVs onto its books. After Citi's announcement, Moody's downgraded Citigroup's long-term credit rating to "Aa3" from "Aa2," and lowered Citibank's Bank Financial Strength Rating to "B" from "A-," citing the view that Citigroup's capital ratios will remain low.



■ ECONOMY

Japanese confidence falls

Confidence at Japanese companies fell to its lowest in more than two years, a closely watched Bank of Japan survey showed yesterday, amid rising anxiety about a possible slowdown in the US economy and recent market turmoil. The quarterly "tankan" survey's sentiment index for large manufacturers fell from 23 in September to 19, below the 21 mark predicted by analysts and the lowest score since September 2005. Japanese Economy Minister Hiroko Ota said the tankan's results did not change her view that Japan's economy is on an upward trend, but said the government would keep an eye on risks, including high oil prices and possible weaker demand from US consumers.



■ AVIATION

Lufthansa eyes JetBlue

German airline Lufthansa will buy a 19 percent stake in US budget carrier JetBlue Airways for about US$300 million, the companies said in a statement on Thursday. "This transaction represents the first significant investment by a European air carrier in a US point-to-point air carrier," the companies said. The New York-based JetBlue is a low-cost carrier that serves 53 US cities with up to 550 daily flights. Lufthansa, Germany's largest airline, announced in October it was planning a major investment drive over the next three years.



■ CONSTRUCTION

ADB announces project

The Asian Development Bank (ADB) announced its biggest-ever project yesterday, a deal to lend Vietnam US$1.1 billion for the construction of a modern highway linking Hanoi with China. The expressway will link Hanoi with the Chinese city of Kunming following construction that is expected to finish in 2012, the bank said. It will reduce the trip to one day from the current two or three days. Truong Tan Vien of Vietnam's Ministry of Transport called it "a very significant project for the country," ADB officials said.
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