WASHINGTON (AFX) – Dieters got a new tool Wednesday to help them take off the extra pounds — the first government-approved nonprescription diet pill.The Food and Drug Administration said the fat-blocking weight-loss pill orlistat, which has been available by prescription, can be sold in a reduced-strength version over the counter.The new version will be sold as ‘alli’ by GlacoSmithKline PLC. Xenical, the prescription version, is made by Roche Holding AG.The drug is intended for people 18 and older to use along with a reduced-calorie, low-fat diet and exercise.Dr. Charles Ganley, FDA’s director of nonprescription products, stressed that the drug is intended for use along with diet and exercise programs.’Using this drug alone is unlikely to be beneficial,’ Ganley said at a telebriefing.While some dietary supplements make weight-loss claims, Ganley said this is the first nonprescription drug approved by the agency for that purpose.Ganley said in trials, for every five pounds people lost through diet and exercise, those using orlistat lost an additional two to three pounds.When taken with meals, orlistat blocks the absorption of about one-quarter of any fat consumed. That fat — about 150 to 200 calories worth — is passed out of the body in stools, which can be loose as a result. About half of patients in trials experienced gastrointestinal side effects.The agency recommended users take a multivitamin when using this drug.The new drug would contain half the dose of Xenical prescription capsules. The price has not been set but is expected to run $1 to $2 a day, company officials said. The company estimated 5 million to 6 million Americans a year would buy the drug over the counter.The Food and Drug Administration said the most common side effect of the product is a change in bowel habits including loose stool and some oily spotting. Eating a low-fat diet will reduce the likelihood of this side effect.FDA said people who have had organ transplants should not take OTC orlistat because of possible drug interactions. In addition, anyone taking blood-thinning medicines or being treated for diabetes or thyroid disease should consult a physician before using orlistat, the agency said.GSK Consumer Healthcare, which will market the pill, said it chose the name alli to indicate a partnership with consumers in their weight-loss efforts.’We know that being overweight has many adverse consequences, including an increase in the risk of heart disease and type 2 diabetes,’ said Dr. Douglas Throckmorton, deputy director for the FDA’s Center for Drug Evaluation and Research.’OTC orlistat, along with diet and exercise, may aid overweight adults who seek to lose excess weight to improve their health,’ he said.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Volcker: Global warming bad for economy
CAIRO, Egypt (AFX) – Measures to reduce global warming would not be devastating economically, and the United States has been ‘particularly delinquent’ on the issue, Paul Volcker, the former chairman of the U.S. Federal Reserve, said Tuesday.
Speaking to the American Chamber of Commerce in Egypt, Volcker said the argument that taxes on oil or carbon emissions, for example, would ruin an economy was ‘fundamentally false.’
‘First of all, I don’t think (such a step) is going to have that much of an impact on the economy overall. Second of all, if you don’t do it, you can be sure that the economy will go down the drain in the next 30 years,’ Volcker said, referring to the impact forecast by a U.N. report last week.
The Intergovernmental Panel on Climate Change reported that global warming is have ry likely’ caused by mankind and that, if it were not reduced, world temperatures and sea levels would rise, as well as the frequency and severity of catastrophic storms and droughts.
Volcker told some 200 Egyptian and foreign business executives that he had been surprised by the warm winter in New York and the cold weather in Cairo, where temperatures dropped to 48 Fahrenheit on Tuesday. ‘Global warming seems to be catching up with us pretty quickly,’ he commented.
‘What may happen to the dollar, and what may happen to growth in China or whatever,’ he said, raising his voice, ‘pale into insignificance compared with the question of what happens to this planet over the next 30 or 40 years if no action is taken.’
‘The scientists seem pretty well agreed that (global warming) is still potentially manageable if we act decisively, beginning now into the next decade or so, by taking measures that are technically and economically feasible.’
Leadership had to come from the United States, ‘and I don’t see much evidence of that happening at the moment,’ said Volcker, who as Federal Reserve chairman in 1979-87 applied politically unpopular measures that brought U.S. inflation under control.
The United States, which produces about one-quarter of the world’s greenhouse gases, is widely criticized for refusing to ratify the Kyoto Protocol, a 1997 pact that requires industrial nations to cut global-warming gases by an average 5 percent below 1990 levels by 2012.
Volcker said taxes either on emissions or on petroleum could be effective in reducing global warming, although it would be difficult to reach an international consensus on the desired levels.
‘It’s an area where in my view the United States has been particularly delinquent,’ he said, adding it would be wiser to impose a tax on oil, for example, than wait for the market to drive up oil prices. A tax would give the government ‘some leverage that you can use for other things.’
Asked why Americans were so reluctant to act on global warming, Volcker said in an interview afterward that he puzzled over the same question.
‘I think any democracy has difficulty focusing on a problem which is not a crisis today but, with a high degree or probability, is going to be a major problem 10, 15, 20 or 30 years from now.’ This was particularly the case when people feared, exaggeratedly in his opinion, that the immediate effects of tackling the problem would be adverse.
‘A lot of people in the United States haven’t been convinced that it’s a problem. Now I think that is changing. The evidence is becoming so strong that may be we are building a base for a political understanding that hasn’t been there before,’ he said.
Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
ConocoPhillips seeks arbitration in dispute with China’s CNOOC – report
HONG KONG (XFN-ASIA) – ConocoPhillips has asked for arbitration in a dispute with China National Offshore Oil Corp (CNOOC) over costs incurred because of Beijing’s windfall tax on oil sales, the Wall Street Journal reported, citing people familiar with the situation.
Under a rule introduced in March 2006, companies that produce oil, both onshore and offshore, to be sold in China are subject to a special tax of 20-40 pct on the portion of the price that is above 40 usd a barrel.
The report was not clear on the arguments put forward by ConocoPhillips in asking for arbitration, but said that under a production contract CNOOC and its foreign partners must agree to amend the contract terms to maintain the foreign partners’ ‘normal economic benefits’ if they are affected by the introduction of a new law.
The report cited a source as saying that ConocoPhillips has activated a clause in its contract with CNOOC that allows its dispute to be heard at the Arbitration Institute of the Stockholm Chamber of Commerce in Sweden.
A spokesman for ConocoPhillips declined to comment when asked whether his company had requested arbitration with CNOOC, tit said.
CNOOC is the parent of Hong Kong-listed CNOOC Ltd.
rc/
Smithfield Foods answers DOJ query
SMITHFIELD, Va. (AFX) – Smithfield Foods Inc. said Monday it has complied with a Department of Justice antitrust division request for information related to the pork processor’s acquisition of rival Premium Standard Farms Inc.
Smithfield said it plans to acquire the pork producer for $674 million in cash and stock and assume $117 million in debt.
Smithfield said it hopes the antitrust division can complete its review in enough time for the deal to close in the first quarter of 2007.
A Premium Standard Farms shareholders meeting has been scheduled for Feb. 23 to vote on the deal.
Smithfield Foods shares fell 25 cents to close at $26.13 on the New York Stock Exchange.
Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Tokyo bourse to offer ETFs linked to prices of precious metals – report
TOKYO (AFX) – The Tokyo Stock Exchange is considering listing exchange-traded funds (ETFs) linked to the prices of gold, silver and other precious metals using know-how it will obtain from the New York Stock Exchange, the Nihon Keizai Shimbun reported.
The NYSE will provide the TSE with expertise on how to manage the funds as part of the broad business partnership the two bourses concluded last week, it said.
Currently, the Tokyo exchange offers 11 ETFs, all of which are linked to a stock price index. This will be the first time for the TSE to list financial products linked to precious metals prices.
The new funds may be listed as early as this summer, with the trading commission to be set lower than for other types of investment trusts, the report said.
US DoJ probes Siemens over bribery scandal
FRANKFURT (AFX) – Siemens said the Department of Justice has launched an investigation into of possible criminal violations of US law in connection with the company’s 420 mln usd bribery scandal.
In its full first quarter earnings report published late yesterday, the German electronics and engineering conglomerate also said it believes the Securities and Exchange Commission’s enforcement division is conducting an informal inquiry into the embezzlement claims.
newsdesk@afxnews.com
jms
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Lockheed completes buyout of IT firm
BETHESDA, Md. (AFX) – Defense firm Lockheed Martin Corp. said Thursday it completed its acquisition of Fairfax, Va.-based technology services provider Management Systems Designer Inc.
The company did not disclose financial terms of the deal, which was announced in December.
MSD provides technology services including systems engineering, applied software and specialized health and computational biology services to various federal agencies including the National Institute of Health, Internal Revenue Service and Department of Defense.
MDS will be folded into Lockheed’s Integrated Systems & Solutions Area.
Shares of Lockheed Martin gained $1.04 to $98.23 in afternoon trading on the New York Stock Exchange.
Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Mitchells and Butlers 16 wks LFL sales up 4 pct, future demand uncertain UPDATE
LONDON (AFX) – Pub group Mitchells & Butlers PLC (M&B;) said like-for-like sales for the 16 weeks to Jan 20 were up 4 pct, in line with company expectations, but warned on the potential ‘dampening effect’ of recent interest rate rises.
The company said like-for-like sales were up 2.4 pct on an un-invested basis. It added pubs in residential areas continued to trade strongly, with like-for-like sales growth of 4.6 pct for the first 16 weeks. Local pubs traded well, while High Street pubs registered like-for-like sales growth of 2.7 pct, with London performing particularly well.
The operator of the Harvester and All Bar One chains said food sales were up 7.2 pct within that period and drinks sales up 2.9 pct, against an on-trade market which saw drinks decline 4.1 pct in the quarter to December. Food and drinks prices were 3 pct higher than the previous year.
Total retail sales were 12 pct ahead of last year but M&B; said, given the recent interest rate rise, that it is uncertain whether consumer demand will continue at current levels.
In an interview with AFX News, chief executive Tim Clarke said it was too early to say if rises have made an impact on sales.
He added: ‘We are watching out very closely for the implications of three rapid increases in quick succession of interest rates. It would be surprising if it didn’t have some dampening effect.’
However, Clarke said the introduction of the smoking ban in Scotland has, thus far, ‘had a less severe negative impact than we might have expected’.
In Scotland, which represents 5 pct of the estate, M&B; said overall like-for-like sales were up 0.4 pct for the 16 weeks, with food up 5 pct, but drinks down 2 pct. Sales in the 10 months since the imposition of the ban are up 1.3 pct, with Clarke hopeful the company will go through a full year with positive growth.
Clarke said: ‘The extent to which we have been able to attract new food customers, to allow for the fact that some of our drinking customers are coming out a little bit later and drinking a little bit less, I think has been very pleasing.’
The company said it is well placed to attract new customers who do not currently use pubs to eat out when the English smoking ban comes in this July, calling the strong food sales growth in the first 16 weeks of the year have ry encouraging’.
However, Clarke was ‘cautious’ that England and Wales will perform better than Scotland in the face of a smoking ban, calling the Scottish experience ‘a hopeful indicator, but no more than that’.
The company added it is making ‘excellent progress’ on the conversion of former Whitbread pubs, with 56 pubs already re-opened under M&B; brands. It said sales uplifts are in line with expectations and on target to be at least 30 pct above the level at which the 239 sites were acquired.
Clarke said M&B; expected to have over half the new estate, around 120 pubs, converted by the time of the interim results. The company indicated at the time of the acquisition in August that it would take two years to work through the conversion, with the 30 pct sales increase forecast to be achieved in the 2008-09 financial year.
‘Obviously we are indicating today that we are going somewhat faster than that,’ said Clarke, adding the company now expects the bulk of the conversions, except those held up by planning permission and other issues, to be complete by Christmas.
The company revealed last Friday Iranian-born entrepreneur Robert Tchenguiz has taken a 15 pct interest in M&B;, made up of a 3 pct stake with voting rights and around 12 pct acquired through contracts for differences.
However, Clarke refused to be drawn on whether the company is concerned Tchenguiz could use his holding to pressure for conversion to the tax-efficient Real Estate Investment Trust structure or to mount another takeover bid for the company.
The company fought off a 550 pence a share takeover bid from Tchenguiz’s R20 investment company in May last year.
‘We very much look to discuss things, as we do on a regular basis, with major shareholders like Robert Tchenguiz,’ he said.
M&B; confirmed the board is still ‘rigorously evaluating the risks and rewards of a REIT structure’ and will update shareholders by the interim results announcement in May.
In a review of the pub sector published this morning, ABN Amro upgraded M&B; to ‘buy’ from ‘hold’.
It said valuations across the sector have fallen some 5 pct in the year-to-date, following a re-rating in the second half of 2006, as REITs appear to be ‘neither imminent nor inevitable’. However, it added demergers were not necessary to release value in property and it sees a potential average upside of 17 pct across the sector in 2007.
Maintaining its ‘buy’ rating and full-year forecasts, Investec Securities noted the performance of the acquired Whitbread pub restaurants and said it expects upgrades at the company’s interims if current trends persist.
At 10.23 am, shares were up 5 pence at 701 pence.
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The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Australian shares close at new record highs on Fed decision, metal prices
SYDNEY (XFN-ASIA) – Share prices closed at new record highs as investor sentiment was boosted by the overnight decision of the FOMC to leave interest rates unchanged at 5.25 pct, and to paint a brighter outlook for US economic growth and inflation, dealers said.
They added that the overnight rise of base metal prices supported the resources sector while leading banks also gained.
The S&P;/ASX 200 advanced 40.7 points or 0.70 pct to a record close of of 5,814.1, just beating Tuesday’s record close of 5,812.5. The key index closed off the day’s high of 5,816.2 and above the day’s low of 5,781.3.
The broader All Ordinaries index rose 39.1 points to a new record close of 5,796.8, surpassing Tuesday’s record of 5,791.5.
Dealers said diversified global miner Rio Tinto climbed ahead of an expected record annual profit of around 7.4 bln usd for 2006 due to be announced at 0600 GMT.
News of a planned 860 mln usd expansion of the Cape Lambert iron ore export port in Western Australia’s Pilbara region, also underpinned the stock’s gains.
However, Rio Tinto majority-owned uranium miner Energy Resources of Australia fell after reporting a 19.7 pct drop in 2006 production from its Ranger mine.
Alumina rose after reporting a 62 pct rise in 2006 net profit to 511 mln aud.
Construction group Leighton Holdings, advanced on its plans to acquire 40 pct of property developer Devine for 94.7 mln aud.
(1 usd = 1.29 aud)
paul.daniel@xfn.com
Japan’s TEPCO hid malfunction at nuclear plant from govt inspectors – report
TOKYO (XFN-ASIA) – Tokyo Electric Power Co Inc (TEPCO) concealed a faulty pump designed to cool the reactor core in case of an emergency at one of its nuclear power plants in order to pass a government inspection, the Nihon Keizai Shimbun reported.
The newspaper, citing a report submitted to he Nuclear and Industrial Safety Agency, said that a motor that drives the emergency core cooling system at TEPCO’s Niigata plant failed a day before a regular inspection in May 1992.
But the company passed the inspection by taking steps to make sure that the government inspectors did not notice the malfunction, such as by turning on a light that indicates that the system is operating normally.
There have been 199 cases in which data was altered at three nuclear power plants in order pass regular inspections, the Nikkei said.
(1 usd = 120.70 yen)
yasuhiko.seki@xfn.com
