■SHIPPING
Maersk sinks into red
Danish shipping and oil giant A.P. Moeller-Maersk yesterday reported a first-half net loss of 3.02 billion kroner (US$577 million) as the global slump depressed freight demand. This compares with a net profit of 11.98 billion kroner in the same period last year. The global shipping firm said the recent global economic turmoil had hit the company “primarily by way of declining volumes and rates for container shipping activities.” Freight revenue tumbled 30 percent to 54.9 billion kroner, a statement said. The company downplayed the possibility of a return to profitability before next year.
■PHARMACEUTICALS
Venezuela eyes Pfizer plant
The Venezuelan government is threatening to seize an idle medicine factory belonging to Pfizer Inc if a purchase agreement cannot be worked out. Commerce Minister Eduardo Saman said on Thursday that “if negotiations fail, our ministry will proceed to occupy the plant so it begins functioning.” A spokeswoman at Pfizer’s New York headquarters says the company is in talks with Venezuela’s health ministry over the sale. The spokeswoman, Tyrene Frederick-Mack, says the plant’s shutdown in May was part of a consolidation of the company’s manufacturing facilities worldwide. Pfizer says it transferred production to a second Venezuelan plant, also in the city of Valencia.
■MINING
Putin pledges US$1bn
Russian Prime Minister Vladimir Putin pledged US$1 billion to help the embattled domestic diamond industry withstand the global economic crisis as he visited a remote mining region yesterday. “We have no doubts that everything will be restored,” Putin told workers as he visited state diamond monopoly Alrosa’s mine near the far northern town of Mirny in Siberia. The government will help restore demand by earmarking as much as 35 billion rubles (US$1.1 billion) in state funds this year, he said in televised comments. He did not provide specifics on how the money would be spent.
■ECONOMICS
Euro zone PMI on the rise
Further evidence emerged yesterday that the 16 countries using the euro are on the verge of growing again following the most savage recession since World War II. Financial information company Markit said mounting optimism helped its composite purchasing managers’ index (PMI) — a broad gauge of business activity — for the euro zone rise by a record three points this month to 50. The increase suggests that economic output in the euro zone has at least stabilized — 50 marks the inflection point between expansion and contraction. Markit said the services sector was nearly growing again. Its PMI swelled to 49.5 this month from 45.7 last month. The manufacturing sector also looks to be on the mend: Its PMI rose to 47.9 from 46.3.
■SOFTWARE
Oracle, Sun deal approved
Business software giant Oracle said on Thursday that the US Justice Department had given the green light to its US$7.4 billion purchase of Sun Microsystems. Approval of the deal had been expected, but it still needs the clearance of the European Commission. Sun, a one-time Silicon Valley star, is the developer of the popular Java programming language. It is also the fourth-largest maker of computer servers but has been steadily losing market share to IBM, as well as Hewlett-Packard and Dell.
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