Japanese indices experience massive drop - market value down US$300bn
Tokyo: Japanese stocks slumped for the second day today, wiping away more than US$300bn in value from the world's second-largest equity market this week.

The Nikkei 225 Stock Average dropped 410.29, or 2.6 percent to 15,395.66 at the 11 a.m. break in Tokyo, continuing its decline from yesterday, when the index had slumped 2.8 percent. This is the index's biggest loss since April 18. The broader Topix index today slid 56.63, or 3.5 percent, to 1584.98.

The loss in share price in the past three days have reduced the market value of companies listed in the Tokyo Stock Exchange's first and second sections to 508 trillion yen from 544 trillion yen (US$4.4trn) at the close of trading last week. This 35.5 trillion yen loss in market capitalization almost equals the value of the entire Chinese stock market, which was valued at US$329bn as of yesterday.

Technology shares dropped after earnings from Intel Corp. and Yahoo! Inc. fell short of estimates and heightened expectations that profits in the industry will disappoint. Internet-related shares including Softbank Corp. and Yahoo Japan Corp. fell for a second day, even as the Yomiuri newspaper reported that Livedoor Co. falsified earnings to show a profit instead of a loss in the year ended September 2004.
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Jetliner orders: Airbus claims victory over Boeing for 2005
Paris: Airbus, the airline maker announced at a Paris news conference that it had won more orders for its aircraft than rival Boeing for the fifth consecutive year in a row. Industry analysts, and rival Boeing, however questioned the quality of the orders as well as the numbers, with Boeing hinting that the numbers may actually be 'loaded,' as they include figures that are yet to be confirmed by airlines.

For the record, Airbus has reported an astounding 1,111 gross orders, or 1,055 net orders. The net includes cancellations and conversations. These figures have been realized thanks to Airbus claiming more than 400 orders in December, including its biggest of the year from China. Boeing won 1,029 gross orders in 2005, or 1,002 net.

Though both airplane manufacturers beat their previous order records - Airbus may well have set an all-time order record for the jet age with its figures. Th eEuropean manufacturer said it beat the record of 1,107 planes sold in 1989 by Boeing and McDonnell Douglas. Boeing however said that it is not sure as to the number of planes it and McDonnell Douglas sold in 1989, and that the figure of 1,107 may be based on bad information.

Airbus sales mark a preponderance of orders for its single-aisle A230 family, with 918 gross orders. Boeing however outsold Airbus as far as the more lucrative wide body jets are concerned. Only about 17 per cent of the Airbus orders were for wide body planes.

As far as the Chinese orders are concerned, Boeing does not count these figures until deals have been signed with individual airlines that will take the planes, it said. Apart form its order for Airbus aircraft, the Chinese government in 2005 also announced that it would buy 150 jets from Boeing. The company said that it counted only 50 of those as orders in 2005 from six airlines. The remaining 100 should be booked this year once the Chinese airlines have signed contracts, it said.

On its part, Airbus has counted the 150 orders from the Chinese government before the planes have been allocated to various airlines. Analysts point out that the Airbus orders from the Chinese government may be "symbolic" of how Airbus has "loaded" its order book at the end of the year to beat Boeing.

Analysts also pointed out the paucity of orders for Airbus's wide bodied jets as another indicator that in the numbers game being played out between the two jet makers, all may not be well with the winner in the long term.

Airbus officials acknowledged that the wide body order gap with Boeing was a concern.
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SEC clears proposals for easier scan of executive pay and perks
Washington, USA: Market regulator, the Securities and Exchange Commission, on Tuesday, backed new rules that will increase disclosure to stockholders on executive pay and perks.

The new rules, according to SEC, would give investors more and better information about the companies they own. Commissioners will vote for a second and final time following a 60-day public comment period.

According to the regulating body's officials, the rules will empower investors to compare officers' pay versus the company's performance and to decide if the top management deserves the compensation that they receive. The detailed proposal includes requiring companies to present a table showing total pay and a summary of all compensation - a "one-stop shop," according to the regulators.

The new rules would apply to the chief executive officer, chief financial officer, the three other highest-paid officers and the company's directors.

If adopted, the rules would require companies to explain the objectives behind their executives' compensation, written in plain English.

Firms would also have to detail perks worth US$10,000, a reduction from the current US$50,000 level. Regulating officials said the proposals would hopefully help eliminate what they call "sneak compensation." Investors have complained about the difficulty of figuring out executives' total compensation.
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Coke appoints Muhtar Kent as new international chief
Chicago: Coca-Cola Co. on Tuesday announced the appointment of Muhtar Kent as president, Coca-Cola International, from Feb. 1. Kent, who currently serves as the company's president and chief operating officer for North Asia, Eurasia and the Middle East, will oversee the entirety of Coke's operations outside of North America.

Kent will report directly to chief executive Neville Isdell, who said in the announcement that Kent's promotion is part of its renewed focus on execution. Kent has recently returned to the company from running a Turkish beer firm.

"It is appropriate that our international operations -- which accounted last year for more than 70% of our total volume and close to 80% of our total operating income -- be put under the leadership of a dedicated, full-time executive with extensive operational expertise," Isdell said.

In May of last year, Kent returned to Coke after six years running the Efes Beverage Group, an Istanbul-based brewer and soft-drink bottler with about $1 billion in sales in 2004. During his stint there, Coke noted, "Efes experienced extraordinary growth, with increases in volume, revenues, cash operating profit and net income." Kent also took the Efes Breweries International unit public on the London Stock Exchange.

Prior to that, the executive was managing director of Coca-Cola Amatil-Europe, covering bottling operations in 12 countries. He first joined the Atlanta-based beverage behemoth in 1978.
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