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Myanmar needs dialogue not threats – UN rapporteur

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LISBON (Thomson Financial) – Protests in Myanmar could lead to a ‘peaceful evolution’ if the international community stresses the need for dialogue rather than threats, the UN special rapporteur to Myanmar said today.

There has to be ‘a position of firmness but of dialogue’ towards the junta, and ‘now is not the time to make threats,’ special rapporteur Paulo Sergio Pinheiro said in New York, quoted by Portuguese news agency Lusa.

‘I would not qualify the protests as a popular uprising and I see no possibility that they will precipitate a change of regime,’ he said.

But they ‘may allow a positive evolution of the regime in the sense of a greater opening up’ if it is well dealt with by the international community, he added.

‘There is no other alternative to dialogue to avoid the danger of a crisis’ and to ‘avoid a brutal crackdown with very negative consequences for the country and for the region.’

He said the visit of the UN special envoy Ibrahim Gambari to Myanmar was ‘a good signal’ of a ‘small opening up by the government for dialogue.’

tf.TFN-Europe_newsdesk@thomson.com

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Sarkozy asks French businesses to freeze Myanmar investments UPDATE

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PARIS (Thomson Financial) – French President Nicolas Sarkozy called on French businesses including oil giant Total to freeze their investments in Myanmar in response to a crackdown on peaceful protestors.

‘France calls on all its private companies, such as Total, to exercise the greatest restraint concerning investments in Myanmar, and asks that they do not make any new ones,’ Sarkozy told the press after meeting the head of Myanmar’s self-proclaimed government-in-exile, Sein Win.

Sarkozy called for ‘sanctions to be adopted without delay’ against the country’s ruling junta by the United Nations Security Council, set to meet later today to discuss the situation.

‘France will not accept the gagging of Myanmar’s opposition,’ he warned, demanding that the European Union ‘also take sanctions as a consequence of the violations of human rights.’

Myanmar security forces used batons, tear gas and live rounds today in a violent crackdown on the mass protests, killing at least four people including three Buddhist monks, witnesses said.

tf.TFN-Europe_newsdesk@thomson.com

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The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

House condemns MoveOn.org attack

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WASHINGTON (AP) – The House on Wednesday overwhelmingly voted to condemn the liberal advocacy group MoveOn.org for a recent advertisement attacking the top U.S. general in Iraq.

By a 341-79 vote, the House passed a resolution praising the patriotism Gen. David Petraeus, the commander of U.S. forces in Iraq, and condemning a MoveOn.org ad that referred to Petraeus as ‘General Betray Us.’

The liberal group’s full-page ad appeared earlier this month in The New York Times and has served as a rallying point for Republicans. President Bush called the ad ‘disgusting’ and criticized Democrats such as Sen. Hillary Clinton, the front-runner for the party’s nomination, for being afraid of irritating the group.

‘Such unwarranted attacks should be strongly condemned by Republicans and Democrats alike,’ said Rep. Jerry Lewis, R-Calif., during brief debate on the resolution.

The resolution was attached to a stopgap measure funding Cabinet budgets until mid-November.

Wisconsin Rep. David Obey, a veteran Democrat, recounted how he left the Republican Party during the era of Sen. Joseph McCarthy, R-Wis., and said that lawmakers have an obligation to criticize their allies as well as their enemies when they go too far.

‘I have got an obligation to be equally upset when that kind of juvenile debate emanates from the left,’ Obey said.

The Senate passed a companion resolution last week.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Bristol-Myers to buy Adnexus for $430M

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NEW YORK (AP) – Drug maker Bristol-Myers Squibb Co. said Monday it will acquire privately held Adnexus Therapeutics in a $430 million all-cash deal.

Adnexus Therapeutics will become a subsidiary of Bristol-Myers and remain based in Waltham, Mass.

The companies said the acquisition of Adnexus will help advance Bristol-Myers’s role in biologics and includes an early-stage trial for cancer treatment candidate Angiocept. Angiocept is designed to be a so-called anti-angiogenic drug, or one that tries to stop cancerous tumors from developing new blood vessels.

Under the terms of the deal, New York-based Bristol-Myers will acquire all of Adnexus’ issued and outstanding shares of capital stock and stock equivalents. The net purchase price is $415 million after deducting Adnexus’ net cash balance at closing.

The deal does not include any debt, Bristol-Myers said.

In addition, Bristol-Myers may pay an additional $75 million in three increments of about $25 million each, in the event certain development and regulatory milestones are achieved.

The closing of the transaction is subject to customary regulatory approvals.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Dassault Aviation to lose Rafale order in Morocco to Lockheed Martin – report

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PARIS (Thomson Financial) – Morocco is likely to order US-made F-16 fighter planes instead of Rafales made by France’s Dassault Aviation, La Tribune reported, citing ‘several’ agreeing sources.

The US is said to have offered 36 F-16s made by Lockheed Martin Corp for less than 2 bln usd while France was proposing 18 Rafales for 2.3 bln eur, the business daily said.

In response to the US offer, the French authorities amended their proposal to 12 Rafales and 12 Mirages or 24 Rafales for 2 bln eur, but sources are not hopeful that France will get the order, according to the report.

Until recently, the French side was hopeful that the first Rafale export contract could be signed during a visit by President Nicolas Sarkozy to Morocco scheduled for next month, the newspaper added.

Andrew.Newby@Thomson.com

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LVMH to launch fund targeting Asian brands, to spend 560-700 mln usd in India

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PARIS (Thomson Financial) – LVMH’s investment fund L Capital Partners is to launch a fund targeting brands in emerging markets in Asia and aims to spend 560-700 mln usd in India, an LVMH regional executive said.
‘We are looking to invest in retail and brands of Indian origin,’ Business Standard’s website cited Ravi Thakran, group president of LVMH’s operations in South, Southeast and West Asia, as saying.
The fund will be launched within 12 months, Thakran said, adding that it may acquire brands not classified as luxury but which have the potential to become such.
Targets in India are to include retail chains, jewellers, traditional ayurveda medicine producers and spas.
Thakran also said LVMH plans to acquire real estate in India ‘to create luxury destinations in the country… such as hotels or spas.’
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Protesters greet latest Trump tower

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(AP) – NEW YORK — Fifty protesters greeted Donald Trump Wednesday at the half-built tower that will be the Trump SoHo, a 46-story condo hotel on the western edge of the artsy enclave.

Trump thanked the protesters ‘for helping to make this job so successful’ and said there were already 3,200 applications for the 400 units.

The building will dwarf any structure within dozens of blocks and has raised the ire of neighborhood activists hoping to preserve some of downtown Manhattan’s bohemian past.

‘I’m not against change but I think that the diversity of New York City is really disappearing,’ said Linda Mason, a SoHo artist holding a sign that said, ‘Down With Trump Greed.”We just do not need something this high.’

The building, scheduled to open in spring 2009, is being marketed as a condo hotel. Buyers of the fully furnished individual units will be permitted to stay in them for no more than 120 days in a year; the rooms will be rented to hotel guests the rest of the time.

The arrangement was negotiated with city officials because new apartment buildings are prohibited by the area’s zoning but hotels are allowed.

Foes of the building have promised legal action to challenge its hybrid ownership structure.

The project is a joint venture between the Trump Organization and New York-based developers the Bayrock Group LLC and the Sapir Organization.

‘We are permitted and there’s simply no problem,’ said Julius Schwarz, executive vice president of the Bayrock Group.

Although just 11 stories of the building have gone up so far, principals of the three companies held a red-carpet news conference at the construction site Wednesday to drum up interest.

‘We are very excited to be here to officially as of today begin to process the enormous volume of calls we have been receiving,’ said Trump’s daughter, Ivanka.

Units at the Trump SoHo will range from 422-square-foot studios to a ‘presidential suite’ taking up the three top floors.

Schwarz said prices would start at $3,000 a square foot.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Medtronic,Kyphon get German antitrust OK

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MINNEAPOLIS (AP) – Medical device maker Medtronic Inc. said Wednesday the German Federal Cartel Office cleared the company’s planned $3.9 billion buyout of spinal implant maker Kyphon Inc.

The company announced the transaction in July. It still needs approvals from other antitrust authorities in order to proceed.

Kyphon shareholders are scheduled to vote on the offer on Oct. 16.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Superbug causes kids’ ear infections

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CHICAGO (AP) – A vaccine that has dramatically curbed pneumonia and other serious illnesses in children is having an unfortunate effect: promoting new superbugs that cause ear infections.

On Monday, doctors reported discovering the first such germ that is resistant to all drugs approved to treat childhood ear infections. Nine toddlers in Rochester, N.Y., have had the germ and researchers say it may be turning up elsewhere, too.

It is a strain of strep bacteria not included in pneumococcal vaccine, Wyeth’s Prevnar, which came on the market in 2000. It is recommended for children under age 2.

Doctors say parents should continue to have their toddlers get the shots because the vaccine prevents serious illness and even saves lives. But the new resistant strep is a worry.

‘The best way to prevent these resistant infections from spreading is to be careful about how we use antibiotics,’ said Dr. Cynthia Whitney, chief of respiratory diseases at the federal Centers for Disease Control and Prevention.

Avoiding antibiotics when they are not needed is the best way to ensure they will work when they are, she said.

Prevnar prevents seven strains responsible for most cases of pneumonia, meningitis and deadly bloodstream infections. But dozens more strep strains exist, and some have flourished and become impervious to antibiotics since the vaccine combats the more common strains.

If the new strains continue to spread, ‘it tells us the vaccine is becoming less effective’ and needs to be revised, said Dr. Dennis Maki, infectious diseases chief at the University of Wisconsin-Madison Hospitals and Clinics.

Wyeth anticipated this and is testing a second-generation vaccine. But it is at least two years from reaching the market, and the new strains could become a public health problem in the meantime if they spread hard-to-treat infections through day care centers and schools.

‘I don’t think the new strains are moving fast enough to call it a race, but the fact is that certain strains are increasing,’ said Peter Paradiso, a scientist at Wyeth Vaccines, the Collegeville, Pa., division that makes Prevnar.

‘It is very worrying,’ said Dr. Keith Klugman, an infectious diseases specialist at Emory University. ‘With the eradication of all the other types in the vaccine, this one is emerging.’

Several research teams reported on the situation Monday at microbiologists meeting.

A different pneumonia vaccine has long been available for adults but it doesn’t work in children, so Prevnar was hailed as a breakthrough. It is used in dozens of countries and had sales of more than $1.5 billion last year. In the United States, it is given as four shots between 2 months and 15 months.

Before the vaccine, many babies and toddlers developed pneumonia, meningitis and serious blood infections that led to hearing loss, brain damage and even death. Drug-resistant ear infections also were a problem.

‘Prevnar has done a remarkable job. Over the last seven years, it’s prevented thousands and thousands of infections,’ not just in vaccinated kids but also in unvaccinated family members, said the CDC’s Whitney.

But it is a unique vaccine because it covers only seven of the 90-odd strains of the germ. By contrast, measles is caused by one type of virus. Booster shots are needed for chickenpox, mumps and measles because immunity wanes, not because the germ changed.

Prevnar, however, is losing its punch because strains not covered by the vaccine are filling the biological niche that the vaccine strains used to occupy, and they are causing disease.

One strain in particular, called 19A, is big trouble. A new subtype of it caused ear infections in the nine Rochester children, ages 6 months to 18 months, that were resistant to all pediatric medications, said Dr. Michael Pichichero, a microbiologist at the University of Rochester Medical Center.

The children had been unsuccessfully treated with two or more antibiotics, including high-dose amoxicillin and multiple shots of another drug. Many needed surgery to place ear tubes to drain the infection, and some recovered only after treatment with a newer, powerful antibiotic whose safety in children has not been established.

Pichichero refused further comment because he has submitted a report to a medical journal. His work was paid for by antibiotic maker Abbott Laboratories and the Thrasher Foundation, which funds projects related to child health.

All 19A strep subtypes tend to be resistant to some drugs and have been growing in prevalence:

–Scientists from a drug company and two labs analyzed more than 21,000 bacterial samples from around the nation and found 19A increasing. Among children 2 and under, the portion of samples that were this strain rose to 15 percent in 2005-2006, from 4 percent in the previous three years.

–A British lab tracking respiratory infections in U.S. kids found that the 19A strain accounted for 40 percent of drug-resistant cases.

–University of Iowa researchers found 19A accounted for 35 percent of penicillin-resistant infections in 2004-05, compared with less than 2 percent the year before the new vaccine came out.

Because these bacteria easily swap gene components to become even more hardy, ‘new types may emerge that can both escape containment by vaccine and spread throughout the world,’ Dr. Daniel Musher of Baylor College of Medicine wrote in the New England Journal of Medicine last year.

Some think Prevnar might be destined to be like flu shots that must be periodically updated to reflect new strains causing illness. But each tweak requires new safety studies and more expense.

Wyeth expects to finish testing its updated vaccine next year and to seek federal approval in early 2009. Review can take a year or more, Paradiso said.

British-based GlaxoSmithKline has a similar vaccine in final-phase testing that targets 10 strains common in Europe and other regions.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Rightmove reports sharp fall in UK house prices in Sept – sources

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LONDON (Thomson Financial) – UK house prices fell sharply in September, the latest Rightmove survey has found, sources said.

The survey shows asking prices for houses slumped by 2.6 pct in September from August, the sources said.

The details of the release were leaked in the market ahead of the official release, which is scheduled for Monday.

jessica.mortimer@thomson.com

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