IN BRIEF (Page 16)

Manufacturing dips

US manufacturing slumped to its weakest in nearly five years in February, reinforcing worries the world's largest economy is headed for recession, while a fall US construction spending in January added to the gloom.

The Institute for Supply Management said on Monday its index of national factory activity fell to 48.3 in February from 50.7 in January. It was the weakest reading since April 2003, the month after the start of the Iraq war, and was also below the level of 50 that separates growth from contraction.

Danisco plans spin-off

Danisco A/S, Scandinavia's biggest food-ingredients maker, rose the most in seven years in Copenhagen trading after saying it plans to spin off its sugar unit by the end of the year.

The company also raised earnings forecast for the unit. The business will have sales in 2008 of at least 6.75 billion kroner ($1.38 billion) and earnings before interest, taxation, special items and share-based payments of about 600 million kroner, the Danish company said.

Massive sum

Sovereign wealth funds may manage as much as $9 trillion within a decade with crude oil prices at about $100 a barrel, said the chief executive officer of the Dubai-based buyout company Abraaj Capital Ltd.

"Over the last year, I've seen sovereign wealth funds take over the role of central banks," Arif Naqvi said yesterday during a conference in the United Arab Emirates organized by Private Equity International.

Fiat falls

Fiat SpA, Italy's largest manufacturer, fell to its lowest since October 2006 in Milan trading, after a plant shutdown led new car registrations down 8 percent in February.

The shares fell as much as 76 cents, or 5.4 percent, to 13.21 euros, and were down 5.2 percent, to 13.24 euros, at 12:35 am in Milan.

Travel firm rises

TUI AG, Europe's largest travel company and owner of the Hapag-Lloyd shipping line, said profit rose 47 percent in 2007 on improvements at both its tourism and marine divisions.

TUI gained as much as 6.2 percent, the most in a month, in Frankfurt trading. Earnings from continuing activities climbed to 616 million euros in adjusted terms before interest, taxes and amortization from 419 million euros in 2006, the Hanover, Germany-based company said.

Markets closed

Staff at the Bank of Greece, the country's central bank, declared a second consecutive 24-hour strike yesterday, shutting down the country's bond and stock markets and disrupting the settlement of some international payments.

The Athens Stock Exchange canceled trading because the walkout is holding up settlements. An average of 430 million euros of shares move each day on the exchange, which has a market value of 157.8 billion euros.

Staples slides

Staples Inc, the world's largest office-supplies retailer, said fourth-quarter profit fell 1 percent on lower North American retail sales to small companies and consumers.

Net income declined to $333.2 million, or 47 cents a share, from $336.5 million, or 46 cents, a year earlier, Staples said. Profit met some analysts' estimates. Revenue for the three months ended Feb 2 rose less than 1 percent to $5.32 billion.

Agencies

(China Daily 03/05/2008 page16)