| During the past week, the world has witnessed | | | | high-gasoline consumption through specially |
| a series of events that influenced the | | | | designed automobiles. Aside from Honda, |
| various sectors of the growing global | | | | other companies that have joined the market |
| economy. On one hand, some events promised | | | | for hybrid cars are Ford and Toyota.Based on |
| more developments and expansion not only in | | | | its recent report, Ford Motor Co. has dropped |
| the international trade but also in specific | | | | down in its sales by 4% last month. Another |
| countries. On the other hand, some | | | | company that has followed the same trend is |
| occurrences may negatively impact or alter | | | | General Motors. According to GM, its sales |
| certain aspects of world trade including the | | | | also decreased by 2.5%. Meanwhile, the total |
| economy of the country specifically | | | | sales of both Toyota and DaimlerChrysler |
| involved.Oil Price Rolls Back in the World | | | | continued to improve this year. |
| marketThe entire week is full of good news | | | | Particularly, the Chrysler Group jumped in |
| for oil importers worldwide. Since Monday, | | | | its sales by 3% of around 190,367 cars. Some |
| the oil price decreased by $2 per barrel in | | | | of the most popular automobiles sold by the |
| the world market. Prior to that, the value | | | | company are: Dodge automobiles, Chrysler, and |
| of oil kept on increasing due to the | | | | Jeep. Chrysler's Mercedes-Benz also improved |
| disruption of supply in Iraq as well as in | | | | by 28%. Toyota reported that its sales |
| Nigeria. According to the report by Mohamed | | | | within the U.S alone rose by 2.4% to around |
| El Baradei, director of International Atomic | | | | 166,940 cars last February.Although Ford's |
| Energy Agency, Iraq has been planning to | | | | sales on Jaguar have decreased last year, the |
| empower its production of nuclear fuel. The | | | | auto maker declared that it has no plans of |
| news has caused tension and raised concerns | | | | selling Jaguar. Ford bought the famous car |
| regarding nuclear weapons. Discussion about | | | | brand back in 1989 for around 1.6B pounds. |
| the issue is currently ongoing. The IAEA | | | | This year, the car company is positive that |
| will talk about the subject on its scheduled | | | | Jaguar sales is going to recover and improve. |
| meeting on March 6. After which, the report | | | | Ford is also set to release a new car model |
| will be handed to the U.N security for final | | | | that would be hitting Europe soon. This is |
| assessment.The almost $2 decrease of oil | | | | part of its strategy to keep up with the |
| price in the world market was caused by a | | | | strong competition against other auto giants |
| failed terrorist attack that took place at | | | | especially those that come from Asia.As part |
| the largest oil plant in Saudi. The | | | | of its move to recover from its losses, |
| situation though was immediately controlled | | | | General Motors officially tasked Jerry York |
| by the Saudi forces that were roused to full | | | | as its newest member of the board. York is |
| alert because of the tension. The oil supply | | | | noted for its remarkable achievements at |
| though was not disrupted within the country | | | | Chrysler and IBM. Although GM has been |
| despite the attack. The value of light crude | | | | receiving negative feedbacks lately, York is |
| oil decreased by $1.91 while the price of | | | | positive that the company is going to |
| brent crude oil lowered to $1.61.The opposite | | | | recover. During his January speech, he |
| situation, however, is taking place in | | | | proposed five things to the GM management: |
| Nigeria. Just recently, the oil price rose | | | | first, to make the expectation of revenue and |
| up to more than $2 per barrel. The sudden | | | | cost more realistic; second, reduction of |
| increase was influenced by the news of the | | | | product offerings; third, review the whole |
| Saudi terrorist attack. Moreover, another | | | | company with an unbiased perspective; fourth, |
| reason was oil supply within the Nigerian | | | | focus on core businesses; fifth, set a clear |
| region was cut by 13,000 barrels per day due | | | | vision for the company.Several Computer |
| to the discovery of a leak. The series of | | | | Companies Seek for ExpansionIn terms of |
| militant threats and attacks within the | | | | technology, Intel Corp. recently got the |
| region also prompted the increase of the oil | | | | official permission from Vietnam in order to |
| price.According to energy analysts, the | | | | construct a microchip plant within its |
| improvement of the oil price in the world | | | | territory. Earlier, the leading microchip |
| market would have been even better. However, | | | | company, proposed the $605M project, which |
| there are several factors (like the focus of | | | | will be built at Ho Chi Minh city. Vietnam |
| the oil market on short-term inventory data) | | | | would surely benefit from the budget since |
| that prevent more positive results. | | | | the project is expected to attract more |
| Currently, the oil price still remains close | | | | foreign investors in the country.Meanwhile, |
| to $61 per barrel as a result of Algeria's | | | | Lenovo computer company has announced its |
| plea to OPEC for market stability.Meanwhile, | | | | plans to release computers that bear the |
| Shell, which is the third leading oil | | | | company's name. Lenovo computers formerly |
| company, has gained a total of $23 B profit | | | | carried the logo of IBM. The company stated |
| last year. This should be an enough reason | | | | that the move is part of its plans to |
| to celebrate, but the huge oil company is | | | | establish itself in the worldwide market of |
| currently facing the need to improve and | | | | computer technology.Just recently, Apple |
| expand its oil resources. Otherwise, it will | | | | computers invited several analysts and new |
| run out off supply in the future. According | | | | reporters to its Cupertino base in order to |
| to reports, Shell was only able to replace | | | | check out its so-called "new and fun |
| between 60% - 70% of the gas it used for | | | | products." So what's up with the big bang? |
| production last year. In 2004, the | | | | Rumor has it that Apple is intending to |
| percentage was even lower with only 19% or | | | | expand its technological products into |
| replacement.Shell, however, is making use of | | | | Hollywood. Apparently, its iTunes has been |
| its large assets in order to meet the stiff | | | | contributing to the promotion of many TV |
| market competition. Its oil reserve projects | | | | programs. Again, there's a possibility that |
| located in Nigeria, Sakhalin Island, and Gulf | | | | the latest rumors could again turn out to be |
| of Mexico are currently underway. The | | | | wrong. Yet then invitation given by Apple is |
| success of these projects would definitely | | | | surely a good sign that the company is up of |
| empower the company's future | | | | a big bang of a surprise for everyone.As part |
| possibilities.Regions in the U.S particularly | | | | of China's vision to improve its local |
| East Coast and Nigeria are also facing issues | | | | technological industries, Vice Premier Wu Yi |
| with regard to their oil supply. This | | | | vowed last Thursday to strengthen the fight |
| problem may eventually result to changes in | | | | against illegal copying of softwares, music, |
| the price of fuel. This situation is | | | | and videos. Piracy has been a growing |
| primarily caused by the shift in the chemical | | | | problem in the country for years. Despite |
| used in the fuel refining process. Formerly, | | | | several attempts to combat it, the problem |
| MTBE (methyl tertiary butyl ether) was used | | | | continues to spread. In fact, piracy in |
| during the process. The use of MTBE, | | | | China has roused international complaints |
| nevertheless, led to problems and protests | | | | including the report made by Washington. |
| regarding water pollution and the | | | | Now, the Vice Premier pledged to strengthen |
| contamination of water supply. As an | | | | the battle against piracy not only as a |
| alternative, fuel companies in the U.S | | | | response to these foreign complaints, but |
| particularly in the East Coast and Texas are | | | | also as part of China's goal to improve its |
| utilizing ethanol. The problem though is | | | | local technology.More Developments in Various |
| that ethanol is not abundantly produced | | | | Sectors to Boost Global TradeJust recently, |
| within the country. Moreover, the fuel | | | | Morgan Stanley decided to invest around $68 M |
| refining needs are greater than the amount of | | | | to Mantri Developers Private Ltd. which is a |
| reserve available. As a solution, the U.S | | | | property development company based in |
| government is currently importing ethanol | | | | Bangalore, India. The decision is part of |
| from Brazil while it continues to construct | | | | Morgan Stanley's plan of venturing into the |
| more ethanol plants within the country.The | | | | global stream of real estate. At the same |
| campaign for energy independence in the U.S | | | | time the investment, would also help Mantri |
| is also receiving negative feedbacks. | | | | in its plans for national expansion. Real |
| Critics such as Tom Friedman of The New York | | | | estate is currently booming in India due to |
| Times commented that the government should | | | | the increasing demands for housing projects |
| focus on other more relevant issues aside | | | | and office buildings. This economic rise is |
| from it. The claim that while energy | | | | also attracting many foreign investors now.In |
| independence may be motivated by noble | | | | terms of health, Roche finally got the |
| purposes, it might not be the wisest move | | | | approval from the U.S drug regulatory board |
| now. The government should look for other | | | | to release Rituxan as the newest drug to |
| more practical alternatives. Besides, the | | | | treat rheumatoid arthritis. The approval of |
| big budget energy independence demands could | | | | the new medicine does not only promise more |
| be allotted to the other sectors of the | | | | profit on the part of Roche, but it gives |
| economy and government.The Various Auto | | | | likewise hope for the patients who have not |
| Companies Continue to Grow and Expand in the | | | | responded to other standard treatments of |
| World market.The discussion regarding oils | | | | rheumatoid arthritis.U.S faces Several |
| issues leads us to another important area, | | | | Economic ConcernsBased on the latest report, |
| which is the car industry. Generally, auto | | | | the trade gap between exports and imports in |
| companies reported notable developments and | | | | the U.S has increased during the past year |
| expansions during this week. Last Wednesday, | | | | from 18% - 75% of a trillion dollar. This is |
| Nanjing Automobile acquired the MG Rover | | | | due to the fact that American consumers have |
| plant at Longbridge, England for a 33 year | | | | continued to demand for more imported |
| lease from St. Modwen Properties Plc. The | | | | products such as oil, vehicles, and other |
| leading Chinese auto maker is said to have | | | | goods. According to analysts, only a 57% |
| paid 1.8 M pounds for the 105 acre factory. | | | | increase in exports can bridge the gap. It |
| Nanjing surprised the global car industry | | | | must be noted the U.S. is a leading exporter |
| last July 2005 when it bought MG rover for | | | | in certain goods such as aircrafts. Although |
| around 53 M pounds thus outbidding its fellow | | | | the sales of durable goods decreased during |
| Chinese competitor, Shanghai Automotive Corp. | | | | the past year, producing companies such as |
| The big move is part of the company's vision | | | | Boeing hope to improve in their sales in the |
| to become one of the leading car brands in | | | | succeeding years.Meanwhile, the huge damage |
| the world.Honda Motors Co. is also getting | | | | left by hurricane Katrina has also caused the |
| more attention form the international auto | | | | insurance companies in the U.S to adjust |
| market after it disclosed its plans to | | | | their premiums. The adjustment is deemed |
| produce a hybrid yet low priced version of | | | | necessary in order to cover the potential |
| its Fit subcompact. The car maker intends to | | | | loss that would be caused by future |
| release the hybrid design next year. Honda | | | | catastrophes.There's also good news regarding |
| representatives, nevertheless, clarified that | | | | IT job opportunities based in the U.. |
| the hybrid technology will be distributed | | | | Although many American companies are |
| only at a lower scale. This is due to the | | | | resorting into offshore services now, IT |
| design's very expensive production cost. | | | | employment opportunities continue to grow in |
| However, Honda is also developing smaller | | | | the U.S This is due to the fact that there |
| battery and motors that would help reduce the | | | | are still certain IT tasks that needs to be |
| hybrid cost in the future. This venture is | | | | based within its territory.By Vasily Klimko |
| part of Honda's goal to beat the problem of | | | | - leading importers exporters directory. |