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News in Brief
Toyota to end production at California plant
AH’, Ibkyo
Toyota Motor said Friday it was abandoning a plant in California that it jointly owned with ailing US giant General Motors -- the first time the Japanese firm has ever pulled the plug on a factory.
I he move, which affects 4,700 workers, follows GM's decision in June to drop its ownership stake in the joint venture, New United Motor Manufacturing Inc. (NUMMI), as it restructured under bankruptcy protection.
Toyota, the world's largest automaker, has never shut an assembly plant anywhere in the world before and the decision to pull out of California marks a dramatic turnaround for the group after years of rapid expansion.
"We have determined that over the mid- to long-term, it just would not be economically viable to continue the production," said Toyota's North America head, Atsushi Niimi. "We deeply regret having to take thisaction."
The plant in Fremont, California will end production for Toyota in March and shift output of Tacoma pick-ups to a factory in Texas, while Corollas will be manufactured in Canada and Japan for the North American market.
"Toyota's announcement that it will close the NUMMI plant is devastating news for thousands of workers in California," said Ron Gettelfinger, president of the United Auto Workers union.
Poland tops EU economy with Q2 growth
AFP, Warsaw
Polish Prime Minister Donald Tusk congratulated his country on Friday after the economy grew 0.5 percent in the second quarter, making it the only EU state to come through thecrisis with flying colours.
"We are the only country in the entire European Union which can boast of a second quarter result on an annual comparison which is positive, even greater than anyone -especially the sceptics--had expected, "'Tusk said.
"Today we are the unquestioned leaders in fighting the crisis," he said.
"Poland is combating the effects of the crisis the most efficiently, not only in our region... but also in the entire EU," he added.
Tusk was speaking at the Warsaw Stock Exchange against the backdrop of a large economic map of Europe showing Poland in green, symbolising economic growth in a sea of recession for other countries marked in red.
A European Union member since 2004, Poland avoided sinking into recession as the global economic crisis torpedoed the economies of its EU neighbours.
First quarter gross domestic product (GDP) growth was 0.3 percent, making it the only member of the 27-state EU to have enjoyed an expansion in that period.
PetroChina first-half profits fall 7.2pc
AFP, Hong Kong
PetroChina, the nation's largest oil producer, said Friday its net profit fell 7.2 percent year on year in the first half due to lower oil prices and weaker demand.
Net profit fell to 50.5 billion yuan (7.4 billion dollars) for the six months ending June 30, from 54.4 billion for the same period last year, the state-owned oil major said in a statemen t to the Hong Kong stock exchange.
Revenue dropped 24.7 percent to 415.3 billion yuan from 551.3 billion. The company said its profits were hurt , by "the serious challenges and consequences" of the global financial crisis and shrinking domestic demand.
China's gross domestic product in the first quarter this year rose 6.1 percent from a year earlier, the worst quarterly growth in nearly two decades. Growth rebounded to 7.9 percent in the second quarter, largely boosted by Beijing's four-trillion-yuan stimulus package.
PetroChina's operating profit from the exploration and production business, the biggest earnings contributor, plunged 71.3 percent to 37.6 billion yuan due to a 55-percent drop in the average selling price of crude oil in the period.
Germany backs calls to limit banker bonuses
AFP, Berlin
Germany Friday threw its weight behind a scheme to limit bonuses for bankers as part of a drive towards greater financial market regulation to be debated at a key Group of 20 (G20) meeting next month.
"The federal government welcomes the French proposal for an international initiative on pay in the banking sector," Klaus Vater, a spokesman for Chancellor Angela Merkel, told a regular briefing.
"Compensation systems can contribute to systemic risks that can arise in banks. In Germany, we have already introduced a raft of measures to reduce excesses in managers' pay," he added.
French President Nicolas Sarkozy said Wednesday he would call for limits on bonuses for bank executives when he takes his campaign for greater regulation to the G20 summit in Pittsburgh on September 24-25.