Nokia cuts profit forecasts
Helsinki: The world's top handset maker Nokia has cut profit margin forecasts but remains upbeat about the future. The company has also unveiled thinner models in the face of stiff competition from Motorola.

Nokia said it foresaw slower growth for the global mobile phone market in 2007, and expects unit shipments to grow by up to 10 percent from this year, compared with a forecast of more than 10 per cent issued by researchers Gartner last week.

Nokia cut its target for its group operating profit margin for the next one to two years to 15 percent from an earlier 17 percent, citing rising exposure to the infrastructure business after merging its networks unit with Siemens from the start of 2007.

Nokia said it aimed to increase its market share in the mobile phone business in 2007 from its current global share of close to 35 percent. Nokia has unveiled four new models, including a thin 6300 model to rival thin phones from Motorola Inc., which pioneered thin design with its RAZR, and Samsung Electronics Co.

The new 6300 phone with a width of 13.1 mm is on a par with most thin models from Nokia's smaller competitors.
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'US economic growth to remain on track'
Washington: The US economic growth is likely to remain on track through 2007, despite a slowdown in the housing sector, Federal Reserve chairman Ben Bernanke said on Tuesday.

Bernanke said growth is expected to pick up next year and that inflationary pressures are likely to ease.

Bernanke's upbeat assessment suggested a so-called "soft landing" for the US economy after the central bank's 17 rate increases through August aimed at taming inflation.

He said the slowdown primarily reflects a cooling of the housing market. Most other sectors of the economy still appear to be expanding at a solid rate, and the labour market has tightened further he said.

He said overall inflation had been fuelled by a spike in energy prices that has been mostly reversed, but remarked that "the level of core inflation remains uncomfortably high."

However, he also said that core inflation - which excludes volatile food and energy prices - is expected to ease as a result of a pullback in energy and commodity prices and other factors.

The Fed has held its base rate at 5.25 per cent since August this year but hinted that it could boost rates further if needed to keep inflation in check. Some analysts see the central bank cutting rates in 2007 to stimulate the economy, but others say another rate hike might be needed.
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AWB to separate wheat business
Sydney: Australian wheat exporter Australian Wheat Board Ltd plans to separate its wheat export business from the main part of the company, after a government inquiry found that it has deceived the UN by providing kickbacks to Iraq under Saddam Hussein.

The move is an attempt by AWB to maintain management of the export monopoly of wheat. The scandal-tainted main company is said to have abused its government-granted powers by channeling $222 million worth of illicit payments to the regime of Iraqi dictator Saddam Hussein between 1999 and 2003 to secure sales.

AWB's shares fell over 4 per cent to A$2.70 after the announcement, which confirmed earlier newspaper reports. The shares later recovered to lose around 2 per cent, but they have still lost over 60 percent of their value since January.

Under the plan, AWB will become two separate companies, a wholly grower-owned single desk manager and a purely commercial agri-business company.
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