■ Automakers
Iacocca stars in Chrysler ad
The man who pulled Chrysler Corp out of near-bankruptcy in the 1980s is coming back. And he's bringing his old tagline: "If you can find a better car, buy it." Retired chairman and CEO Lee Iacocca has been drafted to star in a US$75 million advertising campaign touting the automaker's new "Employee Pricing Plus" discount program as it goes head to head with rivals General Motors Co and Ford Motor Co in a summer price war. Some have questioned whether the 81-year-old auto executive -- who was once so popular that many thought he should run for president -- will resonate with younger consumers. But Chrysler said market research has shown the venerable executive, whose 1980s ads became one of the most successful corporate-image repairing campaigns in US history, has maintained his iconic status.
■ Securities
Purcell to get US$44m
Morgan Stanley will pay former chairman and chief executive Philip Purcell about US$44 million in cash after he agreed to step down from the world's biggest securities firm, ending a drawn-out effort by shareholders and dissident alumni to oust him. The final amount will be based on the difference between Morgan Stanley's fiscal 2005 and 2004 pretax profit, the New York-based firm said in a regulatory filing yesterday. For example, a 10 percent increase in profit would give Purcell, 61, an additional US$4.4 million. So far this fiscal year, Morgan Stanley's pretax profit is down about 6 percent. Purcell's package ranks among Wall Street's biggest golden handshakes. In his eight years running the firm, Purcell received a total of US$190.6 million in salary, bonuses, restricted stock and employee stock options.
■ Electronics
LG Philips to raise funds
LG Philips, one of the world's largest manufacturers of liquid-crystal displays, said yesterday it would raise US$1.2 billion in overseas markets to expand production facilities. LG Philips LCD will offer 26.85 million common shares to global investors in the form of American Depositary Shares during the third quarter of this year. This share offering worth US$1.2 billion is part of the company's new investment plan, which requires a total of 5.3 trillion won (US$5.02 billion). LG Philips LCD is a joint venture between LG Electronics of South Korea and Royal Philips Electronics of the Netherlands. The offering plan came after LG Philips LCD's board approved the sale of as much as US$300 million of the stake owned by Philips.
■ Oil
G8 leaders voice concern
World leaders gathered at Gleneagles, Scotland, for the G8 summit voiced concerns on Thursday over the soaring price of oil, agreeing that it is a major factor in the world economy, a Russian delegate said. Russian President Vladimir Putin told his fellow G8 leaders that "Russia is doing what it can to produce more oil and gas, and we will do all we can to develop the transport infrastructure for ensuring these resources get to our partners," a member of the Russian delegation here told reporters late on Thursday. Oil prices retreated from record highs on Thursday after a stormy session that started with panic selling sparked by the London bomb blasts and ended with US traders fretting over hurricane weather. New York's main contract, light sweet crude for delivery in August, finished at US$60.73, off a new record high of US$62.10 set earlier in the day.
TYPHOON: The storm’s path indicates a high possibility of Krathon making landfall in Pingtung County, depending on when the storm turns north, the CWA said Typhoon Krathon is strengthening and is more likely to make landfall in Taiwan, the Central Weather Administration (CWA) said in a forecast released yesterday afternoon. As of 2pm yesterday, the CWA’s updated sea warning for Krathon showed that the storm was about 430km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point. It was moving in west-northwest at 9kph, with maximum sustained winds of 119kph and gusts of up to 155kph, CWA data showed. Krathon is expected to move further west before turning north tomorrow, CWA forecaster Wu Wan-hua (伍婉華) said. The CWA’s latest forecast and other countries’ projections of the storm’s path indicate a higher
SLOW-MOVING STORM: The typhoon has started moving north, but at a very slow pace, adding uncertainty to the extent of its impact on the nation Work and classes have been canceled across the nation today because of Typhoon Krathon, with residents in the south advised to brace for winds that could reach force 17 on the Beaufort scale as the Central Weather Administration (CWA) forecast that the storm would make landfall there. Force 17 wind with speeds of 56.1 to 61.2 meters per second, the highest number on the Beaufort scale, rarely occur and could cause serious damage. Krathon could be the second typhoon to land in southwestern Taiwan, following typhoon Elsie in 1996, CWA records showed. As of 8pm yesterday, the typhoon’s center was 180km
TYPHOON DAY: Taitung, Pingtung, Tainan, Chiayi, Hualien and Kaohsiung canceled work and classes today. The storm is to start moving north this afternoon The outer rim of Typhoon Krathon made landfall in Taitung County and the Hengchun Peninsula (恆春半島) at about noon yesterday, the Central Weather Administration (CWA) said, adding that the eye of the storm was expected to hit land tomorrow. The CWA at 2:30pm yesterday issued a land alert for Krathon after issuing a sea alert on Sunday. It also expanded the scope of the sea alert to include waters north of Taiwan Strait, in addition to its south, from the Bashi Channel to the Pratas Islands (Dongsha Islands, 東沙群島). As of 6pm yesterday, the typhoon’s center was 160km south of
STILL DANGEROUS: The typhoon was expected to weaken, but it would still maintain its structure, with high winds and heavy rain, the weather agency said One person had died amid heavy winds and rain brought by Typhoon Krathon, while 70 were injured and two people were unaccounted for, the Central Emergency Operation Center said yesterday, while work and classes have been canceled nationwide today for the second day. The Hualien County Fire Department said that a man in his 70s had fallen to his death at about 11am on Tuesday while trimming a tree at his home in Shoufeng Township (壽豐). Meanwhile, the Yunlin County Fire Department received a report of a person falling into the sea at about 1pm on Tuesday, but had to suspend search-and-rescue
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