World Bank chief urges G-8 for agreement in Doha trade talks
New Delhi: Paul Wolfowitz, the World Bank President, has urged the G-8 (group of industrialized countries) apart from Brazil, China, India, Mexico and South Africa to reach an agreement on the Doha trade talks when they meet in St. Petersburg, Moscow on July 17.

He has written a letter to each of the leaders of the 13 countries, including the five which might attend the session along with the African union and international organisations at the G8 summit of major powers, saying that the forthcoming event offers "a unique opportunity we must take advantage of if we are to make urgently needed progress in the Doha trade talks".

The World Bank Chief said, "we can work to lift millions from poverty, boost developing country income, improve global market access and reduce taxpayer and consumer costs for all or allow the whole effort to collapse, with harm to everyone."

Next week, he said, a pledge by the US to reduce agriculture subsidies, by the European Union to improve market access and the +5 members to limit tariffs on manufacture, a pledge that meet's WTO chief negotiator, Pascal Lamy's targets, could help seal a deal.
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Global airlines industry heads towards $3bn in losses: turnaround seen in 2007
New Delhi: The global airline industry may again post losses at $3 billion in 2006, though slightly less than what it posted a year back at $3.2 billion. However, according to a new financial forecast by International Air Transport Association (IATA) the industry is expected to register net profit of $3.3 billion in 2007. But the situation is not rosy since this amount would imply a return on capital of less than 2 per cent, far below the 7-8 per cent necessary to pay back investors from investments in other industries of similar risk.

IATA has observed that in this event, it is imperative to cut costs and enhance premium revenue streams. In fact, it has pointed out that the lower losses in 2006 are largely on account of greater cost cutting by airlines.

North American airlines are expected to improve their financial situation further in 2006, moving to profitability at operating level but still reporting net losses as a result of debt interest and costs associated with restructuring. European airlines also improved their profitability last year largely as a result of extensive fuel hedging that delayed the impact of recent jet fuel price increases.
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