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International Business News
Largest PepsiCo bottling plant in world opens in Russia
AH’, Domodedovo. Russia
US soft drink giant PepsiCo on Wednesday opened the new largest bottling plant in its world network, 50 years after it brought Pepsi to the Soviet Union, in a ceremony outside Moscow.
The opening came amid pledges to boost the company's Russia portfolio during US President Barack Obama's visit to Moscow this week.
"Russia is vitally important to PepsiCo," the corporation's chief executive Indra Nooyi said at the inauguration of the plant at Domodedovo, a town on the outskirts of the Russian capital.
"We will invest one billion dollars in die next direc years."
The increased investment will bring PepsiCo's total outlay in Russia to four billion dollars (2.9 billion euros).
US Commerce Secretary Gary I.ocke, who traveled with Obama to Moscow, hailed PepsiCo's Russian investment as a model for trade ties: 'PepsiCo was the first foreign product sold in the USSR."
He emphasised that the plant would "create batches of jobs" in Russia at a time when unemployment is steadily climbing amid the global financial crisis.
Russian Economy Minister Elvira Nabiullina applauded the beverage giant's creation of "well-paid jobs" with the launch of its new plant.
"Russia welcomes foreign investment. The Russian market is vast and open," she told reporters.
Bank of England to create more new money
AFP, London
The Bank of England is likely to pump extra new money into markets and keep its key interest rate at a record-low 0.5 percent on Thursday in a bid to encourage banks to lend more, according to analysts.
The BoE is to make its latest monthly policy decisions following a two-day meeting that begins here Wednesday amid signs Britain's recession-battered economy is on course to recover after its fastest slowdown in half a century.
Economists said they expected the central bank to agree to pump out another 25 billion pounds (28.9 billion euros, 40.4 billion dollars) for lenders as part of its so-called quantitative easing (QE) scheme.
"There seems absolutely no doubt that the Bank of England's Monetary Policy Committee (MPC) will keep interest rates unchanged at a record low of 0.50 percent at their July meeting," said Howard Archer, chief Britain economist at the IHS Global Insight consultancy.
"There is a strong possibility that they will (also) expand die bank's quantitative easing programme by a further 25 billion pounds to 150 billion pounds.”
AP, Sun Valley. Idaho
Google Inc is working on a new operating system for inexpensive computers in a daring attempt to wrest away Microsoft Corp.'s long-running control over people's computing experience.
The new operating system, announced late Tuesday night on Google’s Web site, will be based on the company's nine-month-old Web browser, Chrome. Google intends to rely on help from the community of open-source programmers to develop the Chrome operating system, which is expected to begin running computers in thesecondhalfof2010.
The Mountain View, Calif.-based company disclosed its plans for the operating system shortly after an online technology news service, Ars Technica, and The New York Times telegraphed the news on their Web sites.
Google is designing the operating system primarily for "netbooks," a lower-cost, less powerful breed of laptop computers that is becoming increasingly popular among budget-conscious consumers primarily interested in surfing the Web.
Over 10,000 German firms bust in four months
AFP, Berlin
More than 10,000 companies declared insolvency in Germany between January and April this year, official data showed Wednesday, as the global economic crisis hits Europe's top economy harder than most.
In total, 10,700 firms went bust in the first four months of 2009, a rise of 12.1 percent on the same period last year, the statistics office said.
In April alone, there were 7.1 percent more companies going bust than in the same month in 2008.
Germany’s economy, which is heavily dependent on exports, has been hammered as demand for goods" made in Germany" dries up around the world amid a global recession.
Authorities in Berlin estimate the economy will shrink by a record six percent this year, before recovering to register a minimal growth of 0.5 percent in 2010.
The recession has taken its toll on firms large and small. Earlier this week, chemical giant BASF announced itwasslashing3,700jobsby2013.