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International Business News
Famine, soaring food prices threaten millions in east Africa
AFP, Nairobi
More than 14 million people across east Africa are facing a humanitarian disaster because of a "lethal mix" of soaring food prices, drought and conflict, aid agencies say.
"The situation in the region is of extreme concern," Peter Smerdon, spokesman for the World Food Programme in Nairobi, told AFP Friday.
• "Rising food prices on top of drought this year means that more and more people than in previous years are falling over the edge into destitution," he said.
His comments echo warnings from the UN children's agency’and the Bntish-based development charity Oxfam.
"A lethal mix of drought, expanding conflict, rising food and energy prices, disease and high poverty is pushing children and their families in the Greater Horn of Africa to the brink of disaster," UNICEF said earlier litis month.
Oxfam said Thursday a "toxic cocktail" ofcrises was putting millions at risk.
?Vid agencies estimate that a total of 14.6 million people are facing disaster if donors do not urgently release funds.
Smerdon said UN agencies, non-governmental organisations, governments and donors "need to react now to provide sufficient food and other assistance to bring the situation under control, or else there will be widespread suffering and increased deaths".
Wal-Mart signs pay deals with official Chinese unions
/\FP, Shanghai
US retail giant Wal-Mart, criticised for its attitude to organised labour at home, said Friday it had reached collective bargaining agreements with China's official union in several cities.
The world's largest retailer made its first agreement in Shenyang in the northeastern province of Liaoning on July 14 to increase employees' pay by eight percent in both 2008 and 2009, Wal-Mart spokeswoman Mu Mingming told AFP.
In addition unions in Shenzhen, in southern Guangdong province, and in Quanzhou, in southeastern Fujian province, secured similar pay rises on Wednesday and Thursday respectively, Mu said.
"We always respect local laws. To respect the rights of our employees, we will continue with such discussions on the basis of mutual understanding as we develop the business here," Mu said.
Mu added the retailer was in talks with unions in other Chinese cities, but did not yet have any timetables for agreement.
GM to build Saab cars in
US, retain nameplate
AFP, Detroit
General Motors will begin building Saab vehicles in the United States rather than put its Swedish subsidiary up for sale, GM chairman and chief executive Rick Wagoner said Friday.
"Saab is a critical part of our European product portfolio and frankly, it does quite well in Europe and tends to be quite a good money maker for us," Wagoner said during an appearance at GM's new engineering development center in Pontiac, Michigan.
"The issue at Saab is trying to sell too many Saabs in the US as the Swedish (kroner) has strengthened against the dollar. We can't push volume in the US. We have to let it settle out and reflect the currency.
"But we've got a number of new (Saab) products coming up beginning in the third quarter next year and it will have a new product portfolio for the first time in a long time."
Wagoner said one of the new Saab models would be built in the US starting next year.
GE announces new structure with 4 divisions
AFP, New York
US conglomerate General Electric announced Friday a new "simplified" organizational structure around four core segments as it set the stage for a spinoff of its consumer and appliance businesses.
With the new structure, "GE is a global infrastructure, finance and media company that is well positioned to capitalize on some of the major growth themes of this era, " chairman and chief executive Jeff Immelt said in a statement.
“With the announcement of our focus on a possible Consumer & Industrial spin-off, we can structure the company in a simpler way that can maximize future growth."
The move extends a simpler structure for GE, one of the largest US companies, which is seen as a microcosm of the economy because of its diversity. GE has slimmed from 11 business segments in 2001 to just four today.
The announcement appears to confirm plans to spin off the consumer and appliance businesses for which GE has been known for over a century, making products such as lightbulbs and kitchen appliances.