Wal-Mart acquires 35 pc stake in Chinese retailer
Shanghai: Global retailing giant, Wal-Mart Stores has agreed to buy 35 per cent stake in Trust-Mart, a hypermarket operator in China. The investment could eventually lead to Wal-Mart taking ownership control of the Chinese retailer which operates 101 hypermarkets in China. Wal-Mart didn't release financial details.

The acquisition would more than double Wal-Mart's stores in China and let it catch up with Carrefour that operates more than 1,000 supermarkets in China.

Trust-Mart, a closely held chain of grocery and appliance stores with more than 31,000 employees, will continue to operate under its own brand, according to a statement from Wal-Mart.

Wal-Mart is buying the stake in Trust-Mart through buying the shares of its owner Bounteous, which is registered in the British Virgin Islands. Founded in 1997, Trust-Mart has expanded to more than 20 provinces in China and sells groceries, home appliances and clothing. The stores are spacious with total space in excess of 400,000 square meters. Wal-Mart, which entered China in 1996, operates 73 stores in 36 cities in China.
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Wal-Mart 4Q profit up 9.8 pc
Bentonville: Wal-Mart Stores Inc has reported a fourth-quarter profit growth of 9.8 per cent beating analyst estimates. Analysts have also issued a bullish forecast for the world's largest retailer.

Lee Scott, chief executive Wal-Mart Stores, attributed the growth partly to its twin strategy of discounting hot items like electronics and holiday toys while continuing to tailor stores more closely to local demographics.

Wal-Mart Stores said profit for the period ending January 31 was $3.94 billion, or 95 cents per share, up from $3.59 billion, or 87 cents, from one year prior.

The company had fourth-quarter sales of $98.09 billion, up 10.9 per cent from a year before but below the $99.95 billion forecast by analysts.
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US heading towards recession: Alan Greenspan
New York: Former Federal Reserve chairman Alan Greenspan has warned of a possible U.S. economic recession later this year. His remarks led to havoc on global stock markets. While U.S. stocks suffered their biggest declines in years, Chinese stocks plunged 9 per cent from record levels in their worst session in a decade.

Until recently, Greenspan has been giving an upbeat economic outlook and downplaying the risks from declining growth.

Greenspan left the helm of the Fed a year ago, after an 18-year tenure, and now runs a consulting firm. However, he still publicly voices his views on economic trends and his voice has the strength to sway the markets.

Greenspan, while addressing a business conference via satellite link to Hong Kong said, "When you get this far away from a recession, invariably forces build up for the next recession, and indeed we are beginning to see that sign. " he said and added, "For example in the US, profit margins have begun to stabilize, which is an early sign we are in the later stages of a cycle."

Greenspan's remarks also panicked global investors, who worry about a cooling of both the U.S. and Chinese economies. A day after sending Shanghai's Composite Index to a record, the benchmark index tumbled 8.8 percent for its largest decline since Feb. 18, 1997.
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Chrysler agrees to union's buyout terms
Detroit: Chrysler Group has agreed on the terms for buyout offers for its U.S. factory workers with its major union. This includes one-time payments of $100,000 for employees having at least one year of experience. Chrysler, the North American unit of DaimlerChrysler AG has announced plans to cut 11,000 blue-collar jobs, including 9,000 jobs in the United States represented by the United Auto Workers union.

Chrysler said that employees with 30 years or more of service would be eligible for a $70,000 payment in exchange for taking early retirement.

Chrysler said it planned to cut 1,000 of those positions by June this year.

Chrysler had early this month announced plans to cut a total of 13,000 jobs or about 16 percent of its work force.
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