Biz People

Lula: Good prospects in '08

Brazilian President Luiz Inacio Lula da Silva (below) said that 2007 was an "exceptional" year for the country and that 2008 will be "infinitely better".

"Brazil is ready for a long cycle of sustainable growth," Lula said in his weekly nationwide radio broadcast. "Brazilian business leaders are investing an amount rarely seen before."

Economists following Brazil forecast that growth in Latin America's largest economy will slow next year, according to a central bank survey of about 100 analysts. The country's $1.07 trillion economy will expand 4.5 percent in 2008, down from 5.12 percent this year, according to the economists' survey.

After a surge in food prices, economists in the survey raised all their inflation forecasts. The forecast for 2007 consumer price index jumped to 4.35 percent on Monday from 3.94 percent four weeks ago, the central bank said. The 12-month inflation forecast climbed to 4.32 percent from 3.93 percent, and the 2008 to 4.25 percent from 4.10 percent.

Quickening inflation has led economists to raise their year-end 2008 interest rate forecast to 10.75 percent from 10.25 percent four week ago. The central bank targets 4.5 percent annual inflation.

Ackman tops up Target holding

Investor William Ackman (above right) raised his stake in Target Corp, the second-biggest US discount chain, and held talks with management on increasing the stock price. The shares rose 3.5 percent, the most in almost a month.

Ackman controls 10 percent of the company, up from 9.6 percent earlier this year, his Pershing Square Capital Management LP said in a regulatory filing.

Pershing is seeking share repurchases and the sale of Target's credit-card loans, as well as "some kind of real estate transaction", a person familiar with the firm's plans said, declining to elaborate.

Target has said it's evaluating whether to sell its $7 billion credit-card portfolio and will make a decision in the first three months of 2008.

Pershing, through Ackman's assistant, declined to comment on its plans. Target spokeswoman Susan Kahn also had no comment.

Target has declined 18 percent since Ackman amassed his stake in July.

Pershing's holdings include stock and options to buy the shares. With swap contracts, Ackman has an "economic" interest in Target of almost 12.6 percent, up from 10.2 percent in July, Pershing said.

Ackman, who has lobbied McDonald's Corp and Ceridian Corp to boost share prices, said last month that Minneapolis-based Target is "probably the best retailer in the world".

Arnault wins Les Echos

LVMH Moet Hennessy Louis Vuitton SA completed its acquisition of Les Echos, giving Chairman Bernard Arnault (below) control of France's most profitable financial newspaper.

Nicolas Beytout took over as head of the media unit of LVMH, the Paris-based luxury goods maker said in an e-mailed statement.

The 240 million-euro purchase of Les Echos from Pearson Plc was agreed on November 5. Arnault is the controlling shareholder of LVMH.

LVMH also said it agreed to sell to businessman Alain Weill La Tribune, France's other financial daily.

(China Daily 12/26/2007 page16)