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American court acquits Merrill Lynch

Merrill Lynch and three other US investment firms won a US lawsuit against investors who, on their advice, invested in risky technology stocks and lost their investments due to the subsequent collapse in the hi-tech stock market. In particular, in the Merrill Lynch case, the judge found that investors' claims against the firm and its analyst Henry Blodget, who, according to the plaintiffs, deliberately misled them with positive recommendations for the shares of two Internet companies, were not sufficiently substantiated, writes FINANCIAL TIMES. Judge Milton Pollack called the victims "risky speculators" and their investments a casino gamble. The judge noted that Merrill Lynch's research reports included a disclaimer about the high risk of investing in the recommended stocks. The judge noted that at that time it was already known that there was a conflict of interest on Wall Street between the analytical and investment divisions of the companies. Previously, another court dismissed similar charges against Goldman Sachs, Morgan Stanley and Credit Suisse First Boston.

Zarubezhneft has left Vietnam The Russian state-owned enterprise Zarubezhneft has withdrawn from the project for the development of the Dai Hung field, block 05-1a offshore the south of Vietnam, the Vietnamese newspaper Lao Dong reported yesterday with reference to the Vietsovpetro company - a joint venture of Zarubezhneft and the Vietnamese state oil company Petrovietnam monopoly. After Zarubezhneft leaves, Petrovietnam will develop Dai Hung independently, REUTERS reports. On May 15, Zarubezhneft warned that it considered further participation in the development of Dayhung inappropriate, since the project turned out to be low-profit.

Electronics manufacturers are switching to Linux The world's largest manufacturers of consumer electronics have agreed to install software based on Linux in their products, not Microsoft, writes the WALL STREET JOURNAL. On July 1, representatives of Matsushita, Sony, Hitachi, NEC, Philips, Samsung, Sharp and Toshiba gathered for a forum dedicated to the issue of switching to software from main competitor Bill Gates. Linux programs are expected to run on mobile phones and audio-visual equipment, among others. Microsoft, whose main success has been the Windows operating system, has been doing everything lately to stop the ever-increasing popularity of Linux, whose “operating system,” unlike Microsoft’s, is completely free and therefore available to anyone.

Benefits don't help Sales of new cars in the US grew by 4.1% in June to an annual level of 16.43 million versus 16.36 million a year ago, but overall, for the first half of the year, car sales were 1.8% lower. General Motors, the leader of the Big Three American automakers, increased sales by 1.5%, while Ford maintained sales at last year's level, according to data from research firm Autodata cited by BLOOMBERG. The results of both companies, despite the various incentives they offered to customers, turned out to be lower than expected by analysts. Chrysler increased sales volumes by 6.3%, exceeding forecasts. At the same time, Asian automakers have again increased their market share, although, unlike their American competitors, they do not offer significant benefits to customers. Toyota added 11% in June, Nissan - 22%, Honda - 8.7%.

Fiat has agreed to sell its aerospace division Fiat has reached an agreement to sell its aerospace division Fiat Avio to the US Carlyle Group and Italian defense company Finmeccanica for 1.6 billion euros. The deal will be completed by the end of this year. Carlyle Group will acquire 70% of the division, Finmeccanica - 30%. Fiat Avio produces aircraft engine parts and supplies key components to defense programs such as the US Joint Strike Fighter project. Last week, Fiat announced it would cut 12,300 jobs over the next three months and invest $19.5 billion in new cars and research and development. The company intends to focus its activities on automobile production, AP notes.

New Nissan models will appear in Spain Japanese automaker Nissan is investing 400 million euros in its own production in Spain - the company Nissan Motor Iberica SA. According to RBC, the investments are related to plans to begin production in Spain of two new models (an SUV and a pickup truck), as well as the production of a 2.5-liter diesel engine with direct injection. Company representatives stated that production of the new models and engine will begin in 2005. It is expected that the combined production of the two new models will be 80 thousand vehicles per year. In 2002, Nissan Motor Iberica SA produced 85 thousand cars.

Toyota is gaining a foothold in China Toyota announced yesterday plans to jointly produce cars with the Chinese industrial corporation Guangzhou Auto Group. The new plant, which is planned to be built in Guangzhou province, will produce the Camry mid-range model. According to the plan, 300 thousand cars should roll off the plant's assembly line in 2010. Thus, by the end of the decade, Toyota intends to produce up to 700 thousand cars in China. Foreign car companies have recently been actively seeking to gain a foothold in the rapidly growing Chinese car market, ITAR-TASS reports.

Kubaka went to the Canadians. The Omolon Gold Mining Company (Magadan Region), one of the largest gold mining enterprises in Russia, reduced its authorized capital by 79% - to 235 million rubles. As INTERFAX reports, the reduction in the authorized capital was a consequence of the redemption of 44% of the shares purchased by the company from its Russian founders. Thus, the Canadian Kinross Gold Corp., which before the reduction of the authorized capital owned 54.7% of the shares of the Omolon ZRK, while maintaining the number of shares, increased its stake in the Magadan company to 98%. Another shareholder of the Omolon ZRK is the Committee for State Property Management of the Magadan Region. (1.04% of the authorized capital). This block of shares, according to the privatization plan for 2003, will be put up for sale. Omolon Gold Mining Company is developing one of the largest gold deposits in the Russian Federation, Kubaka.

Georgian ferroalloys sold to an Austrian company Yesterday Georgian President Eduard Shevardnadze signed a decree on the direct transfer of the Zestafoni Ferroalloys Plant "Ferro" to the ownership of one of the Austrian companies. The transaction value is $7.1 million. In Soviet times, the plant was considered a giant in the metallurgical industry. As RBC was informed by the Ministry of Economy, Industry and Trade of Georgia, the Austrian company presented the tender commission with a business plan for the development of the enterprise, which the commission considered acceptable. The investor promises mainly to retain the company's staff and increase their salaries.

Banks donated money to purchase components for Embraer The Embraer company (Empresa Brasileira de Aeronautica SA) received a syndicated loan of $700 million for the purchase of components and modernization of the Embraer family of aircraft, RBC reports. The loan was provided by Sumimoto Mitsui Banking Corp., ABN Amro Bank, Credit Lyonnais and Societe Generale. The risk insurer for this loan was the Japanese government agency Nippon Export and Investment Insurance (NEXI). Embraer is the world's fourth largest commercial aircraft manufacturer and is headquartered in Sao Paulo.

Turkish TVs have surpassed "Record" The Turkish company Vestel Elektronik Sanayi Ve Ticaret AS plans to commission a TV production plant in Aleksandrov (Vladimir region) in August, INTERFAX reports. Investments in construction amount to about 40 million dollars, they are carried out entirely at the expense of the Turkish company. To date, the company has completed construction of the plant building and has begun importing and installing equipment. By the end of the year it is planned to assemble the first 2 thousand televisions. The design capacity of the enterprise will be 2 million televisions per year. In the future, some parts will be manufactured at the plant. Previously, it was planned that the Turkish company would carry out construction together with the Aleksandrovsk-based Standart CJSC; televisions were supposed to be produced under the Record brand. However, Vestel decided to build a plant on its own and produce televisions under the Vestel brand.