Volkswagen posts drop in profit
Frankfurt: Automaker Volkswagen's net profit dropped 49 per cent during the second quarter as sales slowed and the stronger euro sapped revenue, the company said. Net profit fell to 394 million from 1 billion. The company's result was just short of the 399 million predicted by nine analysts surveyed by Dow Jones Newswires. Volkswagen also reported a drop in profit of 57 per cent for the first six months of the year, to 596 million from 1.4 billion the year before. It said the first half "was primarily influenced by declining sales in important markets and by the continuing strength of the euro."

The stronger euro saps earnings because revenues earned in foreign currencies shrink when translated back into euros, and because sales can fall as European goods become more expensive compared to those of foreign competitors. VW also cited increased costs associated with the launch of new models, but said that new versions would boost earnings as sales ramp up in the second half. The company plans to introduce a new version of its mainstay passenger car Golf in the fall.
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BA, union strike talks drag on
London: Talks between British Airways Plc and trade unions dragged on into Friday as Europe's largest airline sought to head off strikes by check-in staff, but its optimism was soured by the threat its engineers may also strike. BA chiefs and officials from three unions representing check-in workers were brought together at UK arbitrator Acas after direct talks between them broke down.
Both sides said the talks were continuing, but said details of the discussion would not be revealed until they ended. "All parties are keen to get talking with Acas' supervision and help, but quite what the outcome will be is difficult to answer," a spokesman for BA said.
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Goldman Sachs to reloate UK jobs to India
London: US investment bank Goldman Sachs is to relocate a substantial part of its British operations to India next year to slash overheads, acording to Britain's Independent newspaper. The report said that the bank told London staff of the plan in a confidential memo on Wednesday. Officials at Goldman in London and New York could not immediately be reached for comment. The report said that the bank would move part of the administration and IT department to India next spring or summer. Banks such as Goldman, JP Morgan Chase and Citigroup have been examining the benefits of shipping research jobs to countries such as India, where salaries for business graduates are as little as 10 per cent of those in New York and London. Earlier this week, the Economic Times said that Morgan Stanley was joining a growing number of firms to choose India as an outsourcing centre to lower their costs.
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