IN BRIEF (Page 16)

Inflation warning

The Bank of England said inflation will accelerate, breaching the government's 3 percent limit for "several quarters", and making it harder for policymakers to stave off a possible recession with interest-rate cuts.

The bank, which has a mandate to keep inflation at 2 percent, said gains in consumer prices will exceed that target in two years if it reduces the benchmark rate to 4.5 percent in 2009, as investors predict. The Bank of England this month left the rate at 5 percent.

GM fundraising

General Motors Corp, the biggest US automaker, may need to raise about $9 billion over the next two years should selling conditions not "materially rebound" in the second half, Lehman Brothers Holdings Inc said yesterday.

The proceeds would go "to refinance debt, with potential additional needs for operational cash burn", analysts including Brian A. Johnson wrote in a note to investors. GM said on Tuesday it may have to borrow and cut spending if the economy worsens, a week after identifying more than $1.4 billion in new costs.

Price rises

US consumer prices rose less than forecast in April, reflecting cheaper furniture and lodging costs that offset the biggest jump in food expenses in 18 years.

The consumer price index increased 0.2 percent after a 0.3 percent gain in March, the Labor Department said yesterday in Washington. So-called core prices, which exclude food and energy costs, climbed 0.1 percent, compared with a 0.2 percent advance a month earlier.

Tesco goes shopping

Tesco Plc, the United Kingdom's biggest supermarket company, agreed to buy South Korea's Homever discount chain for 958 million pounds, boosting sales by about a third in its most profitable overseas market.

Tesco is buying the 36 outlets from E.Land Group, a local retailer, and will add them to the Homeplus discount stores the UK company runs with Samsung Group. The deal price includes assumed debt, Cheshunt, England-based Tesco said yesterday.

New Samsung chief

Samsung Electronics said yesterday it named external relations chief Lee Yoon-woo as the company's new chief executive, a move seen as speeding up decision-making at the world's largest computer memory chipmaker.

The change at Samsung Group's flagship company follow the resignation in April of Chairman Lee Kun-hee in the wake of his indictment over tax evasion and breach-of-trust charges.

Possible hike

Honda Motor Co, Japan's second-largest automaker, may increase prices for its vehicles in North America and other markets to offset higher steel and other raw materials costs.

"We will definitely consider it," Yoichi Hojo, chief operating officer of Honda's business management operations, said in an interview in Tokyo. "It may be difficult to raise prices right away in Japan and North America, as market conditions are tough."

Telefonica climbs

Telefonica SA, Europe's second-largest telephone company, said first-quarter profit rose 22 percent on growth at its mobile-phone units in Latin America.

Net income climbed to 1.54 billion euros from 1.26 billion euros a year earlier, the Madrid-based company said.

French lender falls

BNP Paribas SA, France's largest bank, reported a 21 percent drop in first-quarter profit after "violent" market conditions led to asset writedowns and increased provisions for risky loans.

Net income fell to 1.98 billion euros from 2.51 billion euros a year earlier, the Paris-based bank said yesterday.

Agencies

(China Daily 05/15/2008 page16)