Coca-Cola 3rd-quarter profit risess slightly

ATLANTA: The Coca-Cola Co. said Tuesday its third-quarter profit rose less than 1 percent, as sales fell as consumers continued to limitsoft drink purchases and the stronger dollar took a toll on revenue.The world's biggest beverage maker says it earned $1.92 billion, or 81 cents per share, compared with $1.92 billion, or 81 cents per share, a year earlier.Results in the most recent quarter ended Oct. 2 included a 1-cent restructuring charge.Atlanta-based Coca-Cola Co., the world's largest soft-drink maker, says revenue slumped to $8.04 billion from $8.39 billion. Foreign currency exchange dragged down revenue by 6 percent.Analysts polled by Thomson Reuters, who usually exclude one-time items from their estimates, forecast profit of 81 cents per share on revenue of $8.11 billion.Shares of Coca-Cola fell $1.04 to $53.75 in premarket trading.In North America, case volume fell 4 percent.Many consumers are cutting back on soft drinks for health reasons and switching to juices and teas. Coca-Cola said unit case volume for soda fell 5 percent in North America in the quarter, while volume of still beverages, including teas and juices, was even.Sales rose in emerging markets including India, China and Brazil. Total international case volume rose 4 percent, which includes 37 percent growth in India and 15 percent in China.The company said that a U.S. dollar still strong relative to last year's third quarter hurt earnings per share during the quarter, because about 85 percent of Coca-Cola's profit comes from sales abroad. A strong dollar dampens foreign sales for U.S. companies, because overseas sales convert back to fewer U.S. dollars.

Female hedgies kick dust in their male counterparts’ faces

LONDON: Hedge funds run by women have fallen only half as much in the financial crisis as those managed by men. The value of female-managed funds has dropped by 9.6 per cent in the past year, compared with 19 per cent for the rest, according to Chicago-based Hedge Fund Research.Women investment managers have also performed better over the past decade, with an average annual return of more than 9 per cent, while hedge funds overall delivered 5.82 per cent. The findings were showcased in a research paper presented at the Women’s Forum for the Economy and Society in Deauville, France, at the weekend. They are supported by Hedge Fund Research’s diversity index, which tracks the performance of other minority groups along with women. Funds run by women accounted for roughly 50 per cent of the index, which returned an average of 8.21 per cent a year since 2003, compared with 5.98 per cent for the field as a whole.Despite women’s apparent prowess, in early 2008 they were running only 3 per cent of the $1.9 trillion then invested in hedge funds. Female hedgies, such as Leda Braga, at London-based BlueCrest Capital Management, are a tiny minority.The paper by the US National Council for Research on Women says they suffer “capital punishment”, finding it harder to raise the finance to start up fund management firms and experiencing more difficulty in attracting money from investors. The average size of funds run by women and minorities is $73.7 million, compared with $308.2 million among men.One female asset manager said: “With a man ... you might dismiss something as a bad day, with a woman it’s seen as a sign of instability. Somewhere, buried deep in the psychology, is the notion that people don’t trust us with their cash.” The NCRW argues a better mix of male and female investment styles would lead to greater market stability. Linda Basch, its president, called for a change in the chilly workplace culture for female investment professionals and said women needed to gain critical mass in the finance industry: “It is uncomfortable to be the only skirt in the room. This is a time when we need women, with their more tempered approach to risk, as well as men.” Jacki Zehner, a former partner at Goldman Sachs, who initiated the report, said: “Where women are present at decision-making tables, the quality of those decisions improves.” NCRW’s work supports the views put forward by investment banker Ros Altmann and Professor Charles Goodhart of the London School of Economics at the Treasury select committee on women in the City last week. They argued the financial crash was less likely to have happened if there had been more women in senior positions in the industry. Goodhart said their more cautious and long-term outlook could prove a more positive trait than the aggressive, risk-taking stance of men.

Qatar trims Barclays bank stake

QATAR: Qatar's sovereign wealth fund said Tuesday it had trimmed its stake in British bank Barclays to about seven percent, sending the group's share price sliding.Qatar Holding, a division of the Qatar Investment Authority, exercised warrants to buy 379.22 million ordinary shares at 197 pence from Barclays and sold them on the stock market.The transaction, which was carried out in morning London deals, leaves their shareholding at 7.13 percent, compared with 7.40 percent previously, according to a Barclays spokesman.The news sent Barclays' share price tumbling five percent to 362.95 pence in morning trade on the London stock market.Barclays had last year won a seven-billion-pound capital injection largely backed by Abu Dhabi and Qatar, as it sought to survive the credit crunch without government aid. But Abu Dhabi has since sold most of its holding.Qatar Holding chief executive Ahmad Al-Sayed said Tuesday's move did not affect Qatar's long-term strategy as Barclays' biggest shareholder."The decision to exercise the warrants and dispose of the resultant shares forms part of Qatar Holding's portfolio management program and does not impact on our current intention to remain a long term strategic shareholder in Barclays."The transaction will result in proceeds for Barclays of approximately 750 million pounds (822 million euros, 1.23 billion dollars)."Barclays chief executive John Varley meanwhile added that the move would broaden the group's shareholder base."We are happy to be working with Qatar Holding on a placing derived from the exercise of some 50 percent of its warrants," Varley said in a separate statement."The effect will be further to broaden the base of our share register. Qatar Holding is our largest shareholder and a key partner of the Barclays Group."The company's share price has soared in recent months because the bank successfully steered a path through the global financial crisis with the help of massive investment from oil-rich investors Abu Dhabi and Qatar.

Oil above $70 as global stocks gain

SINGAPORE: Oil prices floated above $70 a barrel Tuesday in Asia as a jump in global stock markets boosted investor confidence.

Benchmark crude for November delivery was up 19 cents at $70.60 by midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract gained 46 cents to settle at $70.41 Monday.

Oil has loitered near the $70 a barrel level for months as traders struggle to gauge how strongly the U.S. economy will recover.

Last week, poor jobs and manufacturing data undermined optimism, but on Monday the Institute for Supply Management said its service index showed that sector grew in September for the first time since August of last year.

Crude traders often look to stock markets for a sense of overall investor confidence. The Dow Jones industrial average rose 1.2 percent Monday, and most Asian indexes gained in early trading Tuesday.

A weakening dollar also helped oil prices. The euro rose to $1.4711 on Tuesday from $1.4647 the previous day, and the dollar slipped to 89.15 yen from 89.53.

In other Nymex trading, heating oil was steady at $1.79 a gallon. Gasoline for November delivery gained 0.52 cent to $1.76 a gallon. Natural gas for November delivery rose 1.4 cents to $5.00 per 1,000 cubic feet.

In London, Brent crude rose 15 cents to $68.19 on the ICE Futures exchange.

Australia first big economy to lift interest rates

SYDNEY: Australia on Tuesday became the first advanced economy to raise interest rates since the global financial crisis and promised more rises to come, boldly declaring the risk of recession over.

The central bank announced a rise of 25 basis points to 3.25 percent, lifting rates off a 49-year low after an aggressive round of cuts credited with helping fight off the worst global downturn since the Great Depression.

"That basis for such a low interest rate setting has now passed, however," Reserve Bank of Australia (RBA) governor Glenn Stevens said in a statement.

"With growth likely to be close to trend over the year ahead, inflation close to target and the risk of serious economic contraction in Australia now having passed, the Board's view is that it is now prudent to begin gradually lessening the stimulus provided by monetary policy."

Australia is the only major Western nation to avoid a recession in the worldwide slump and posted growth of 0.6 percent in the three months to June -- the best in the developed world.

The RBA had slashed the rate from 7.25 percent last September to 3.0 percent in April, the lowest since 1960, while the government unveiled a massive 70 billion dollar (61.4 billion US) stimulus to keep the economy turning.

Treasurer Wayne Swan resisted calls to scale back the cash injection, despite loud protests from the opposition that it is no longer needed.

"To do so would rip the rug out from under the recovery and see more workers and more businesses hit the wall," Swan warned.

"It is the case that Australia's economy is out-performing other advanced economies," he added. "Many economists in particular will see today as a consequence of economic recovery."

However, some experts were stunned by the rate rise, saying they expected a more cautious approach during a fragile world recovery.

"It's come pretty quickly. It was a surprise as far as I was concerned," Nomura economist Stephen Roberts told Sky News.

"I was expecting them to wait a little bit longer. The reason they have given is that the danger of economic contraction has well and truly passed."

The Australian Chamber of Commerce and Industry (ACCI) said the RBA had acted "too hastily" and warned the move would dampen rising consumer and business confidence.

"We believe the Reserve Bank of Australia has actually pulled the interest rate trigger too quickly," ACCI economist Greg Evans told reporters.

"We believe on the back of continuing weakness in trading conditions and also a very uncertain outlook both domestically and internationally ... the Reserve Bank has acted too hastily," he said.

Alan Oster, chief economist at National Australia Bank, said the rise was unlikely to be followed by other big economies until they have posted at least two quarters of growth.

"The next move for rates in other countries will be up, but I think most of them will start from the middle of next year," he said. "Most economies are not going to do it before Christmas, let's put it that way."

The Australian dollar surged to 88.8 US cents as investors rushed to cash in on the higher rate. Gains on the Sydney share index were limited to 0.4 percent over worries that the rise would hit mortgage-holders in the pocket.

The RBA said Australia's economy had been boosted by the growth of China, a key market for shipments of commodities like iron ore, but warned that demand could soften as stimulus starts to run dry.

"Economic conditions in Australia have been stronger than expected and measures of confidence have recovered," Stevens said.

"Some spending has probably been brought forward by the various policy initiatives. As those effects diminish, these areas of demand may soften somewhat."

US shares rally on economic recovery confidence

NEW YORK: Wall Street shares climbed Tuesday amid confidence the global economy has emerged from recession underscored by Australia's decision to raise interest rates.

The blue chip Dow Jones Industrial Average lifted 102.93 points (1.07 percent) to 9,702.68, a day after jumping by more than 100 points.

The technology-heavy Nasdaq composite added 23.22 points (1.12 percent) to 2,091.37 while the Standard Poor's 500 index increased 12.61 points (1.21 percent) to 1,053.07.

The market opened on a bullish note after Australia on Tuesday became the first advanced economy to raise interest rates since the financial crisis.

Although the United States is unlikely to raise rates in the near future as it still undergoes the painful transition of emerging from recession, investors saw the move as a key indication of global recovery.

"It is clear that there is a psychological bid in the market as the symbolism of the first rate hike from a G20 nation is trumping any negative considerations that go hand-in-hand with higher rates," said Patrick O'Hare of Briefing.com.

"That symbolism shines through in the fact that most equity markets around the globe have gained at least 1.0 percent in the wake of the rate hike announcement," he said.

The rate hike is being interpreted as "another confirmation that the world is back from the brink of economic disaster," O'Hare said.

World Bank to help develop high-speed internet in Africa

GENEVA: The World Bank said Tuesday it would invest 215 million dollars (146 million euros) to help develop high-speed internet infrastructure in central Africa and make the service more accessible to people in the region.

"This programme will support the countries of the Central African region in developing their high-speed telecommunications backbone infrastructure to increase the availability of high-speed internet and reduce end-user prices," it said in a statement.

People living in Central Africa pay up to twice as much in monthly internet fees than elsewhere in Africa, while compared to the rest of the world, they pay up to three times as much.

"Until now, people in Central Africa have the lowest quality and highest cost internet and telephone services in Africa," said the World Bank.

Cameroon, Chad and Central African Republic will join in the first phase of the 10-year-long programme, which will also help these countries to harmonise their laws regulating the internet and communications sector.

A further eight countries -- Republic of Congo, Equatorial Guinea, the Democratic Republic of Congo, Gabon, Niger, Nigeria, Sao Tome and Principe, and Sudan -- have also met the criteria to participate, added the World Bank

EU says investigators raid pharma giants

BRUSSELS: Investigators carried out raids on European pharmaceutical giants on Tuesday over suspected competition violations, the European Commission said in a statement.

Brussels "can confirm that on October 6 commission officials started surprise inspections at the premises of certain companies active in the pharmaceutical industry," the statement said.

France's Sanofi-Aventis was one of those raided, a company spokesman told AFP. "Sanofi is going to cooperate with the commission," he added.

Belgium's UCB and Solvay, Britain's AstraZeneca, France's Servier and Germany's Bayer and Merck each said they were not targeted.

Officials accompanied by national inspectors were seeking evidence of "restrictive business practices and/or the abuse of a dominant market position," the commission, which polices competition in the EU, added.

Regulators stepped up a sector-wide probe launched in January 2008 with an investigation announced in July into the relationship between companies that patent their products as brand-named medicine, as well as their ties with generic drug producers.

Then, the commission said that "unilateral behaviour" by French pharmaceutical maker Les Laboratoires Servier might have hindered the entry into EU markets of generic perindopril, a cardio-vascular medicine first developed by the company.

The commission did not detail the companies or countries involved, and stressed that such steps follow no fixed deadlines.