US Treasury secretary Timothy F. Geithner says Frances Christine Lagarde and Mexicos Agustin Carstens are both qualified to run the IMF. He may have little choice but to support Lagarde. Under an unwritten agreement that dates back to the end of World War II, the IMF has always been led by a European while the World Bank has been headed by an American. Backing a non- European for the IMF could mean relinquishing US control of the World Bank an outcome members of Congress who decide on funding for development banks are not ready to contemplate. For the sake of influencing policy and lending, as well as maintaining congressional support, it is very important that the World Bank continue to be led by an American, representative Nita Lowey of New York said.
Truce holding as Yemenis celebrate Salehs absence
Yemenis on Monday celebrated what many hope will be a new era without President Ali Abdullah Saleh, now recuperating in Saudi Arabia after an operation to remove shrapnel from his chest a day earlier. An opposition party coalition, which joined months of street protests to end Salehs three-decade rule, said it backed as a first step transferring power to the vice-president who is now the troubled countrys acting leader. The Saudi-led Gulf Cooperation Council, in a statement from its secretary-general, urged all parties to work to end violence and said it was is ready to contribute to any mediation. But the future of Yemen, generals and politicians, remains uncertain.
Daimler, Rolls-Royce clinch control of Tognum
Daimler and Rolls-Royce have secured a 60% stake in engine maker Tognum with a sweetened takeover bid, expanding their presence in higher margin industrial diesel engines. However, the bidding consortium fell short of its initial goal, which was to win full control of Tognum, a manufacturer of military and ship engines once owed by Daimler. Last month German car and truck maker Daimler and Britains Rolls were forced to raise their offer to 26 euros ($38.07) a share, raising it from an initial 24 euros a share bid and valuing the diesel and gas engine maker at 3.4 billion euros. They hope to tap into a global market worth more than 30 billion euros a year that is growing at above average rates. But to gain access to intellectual property in the form of patents, and to enable a profit transfer agreement, bidders for German companies need to have control of at least 75%.
Rolls Royce plans to redesign A350 engine
Rolls-Royce is set to bow to airline pressure by building a new engine for the Airbus A350, a costly rethink of strategy for Europes newest airliner, aviation industry sources said on Monday. The plan would involve a major overhaul of Rolls-Royces largest civil jet engine and give the Airbus A350 some missing muscle to compete with Boeings popular long-range 777-300ER. Two smaller versions of the A350 will broadly compete with Boeings revolutionary new 787 Dreamliner from 2013 onwards. But airlines have criticised a one-size-fits-all policy that they say would leave the third and largest model, the A350-1000, unable to reach its goal of competing with the popular Boeing 777-300ER mini-jumbo because it is saddled with the same engine.
Statoil sells stake in Gassled for $3.2 billion
Norwegian oil company Statoil will sell the majority of its stake in gas transportation company Gassled to a holding company for 17.35 billion Norwegian kroner ($3.2 billion). Statoil said on Monday that it will sell 24.1% of Gassled shares to Solveig Gas Norway, a holding company owned by Canada Pension Plan Investment Board and subsidiaries of German-based insurance giant Allianz and the Abu Dhabi Investment Authority. The transaction is subject to the approval of the Norwegian ministry of Petroleum and Energy and the Norwegian ministry of Finance. After the sale, Statoils stake in Gassled will be 5%.