On July 29 mobile operators Movistar a Claro stated that on 22 August Chile will become Latin America’s second country after the launch of iPhone. After complying with necessary import procedure first Apple iPhone would hit the market as stated by Claro Chile, of Mexican telecoms group América Móvil.

Claro Chile’s manager of value added services, Vady Guerra stated that after a long discussion and preparation the final date of launch is decided. Movistar could start offering the iPhone the same day they arrive as there was no individuality agreement in Chile between any operator and Apple for launching the iPhone as told by Javier Valenzuela, manager of handsets and points of sale for Telefónica Móviles Chile, which operates the Movistar brand, to press.

According to an executive the iPhone launch in Chile is decided due to its ripeness of the market and the competence in certification and other approval procedures for bringing the device into the market, that are tougher in other area.

It is discovered that around 8,014 people registered to purchase the phone three days ago, but exact quantity and cost of handset could not be measured. However Claro Chile reported some days ago that there were 35,000 users on the company’s waiting list. As in other parts of the world cost is expected near about US$200.

The largest life insurance company in the United States, MetLife reported a drop in its earnings over the second quarter. The news led to a fall in its share price which slipped almost by 10 percent. The news points to the continued trend of slump in the equity markets all over the country.

The second quarter report revealed that MetLife earnings were down to $915 million or $1.26 a share which indicates a slide of 19 percent. Senior executives blamed the drop in profits on investment losses as well as drop in insurance earnings. One major reason for this was greater share of catastrophe losses arising out of natural disasters like tornadoes and hailstorms which swept many parts of the US in the beginning of the year.

The news of reduced earnings and falling profits from MetLife had a negative impact on the stock market with its share prices falling to $47.60 in after hours trading. This proved contrary to Wall Street expectations of MetLife earning $6.16 a share in 2008 operating profit. The company has now revised its operating earnings forecast to $5.70 to $5.90 a share. However total revenue which includes investment income as well as realized losses has risen by 4 percent from last year to touch $13.7 billion.

-Kalyani Mookherji

Internet retail giant Amazon recently launched its new payment service which will make it possible for other online retailers to use it on their website. The service is named Checkout and closely follows the introduction of another payment service by Amazon labeled Simple Pay. Checkout is being seen as offering a direct challenge to auction giant, eBay’s preferred method of payment service, Paypal.

Checkout from Amazon has a host of payment options for its buyers which number more than 81 million at present. The most important aspect of the new payment service is that customers can use the same payment details like credit card numbers and shipping addresses which they have submitted to Amazon to buy products and services from other online retailers who use Checkout.

Checkout offers other online retailers the chance to use Amazon’s highly efficient one-click ordering system besides making use of its tools in the calculation of sales tax and shipping costs. Other than these retailers can also use Amazon’s system of tracking the shipment of customers’ orders. However not all online retailers seem keen to make us of Checkout. One reason for this, experts feel, is that Amazon often ends with competing with the same retailers that it is now wooing with its new payment service.

-Kalyani Mookherji

Long awaited clinical trail reports of the new drug from Elan and Wyeth have revealed ambiguous results in the treatment of Alzheimer’s disease. The news led to a fall in the share prices of both companies with Elan’s New York shares plunging down by more than 18% and those of Wyeth slipping by 10%.

The new drug labeled bapineuzumab is being developed by Wyeth and Elan with the aim of providing revolutionary treatment to patients afflicted by Alzheimer’s disease. In the clinical trials 234 patients were studied over a period of 18 months. While twelve of them with mild to moderate condition of the disease suffered from serious side effects like vasogenic edema, those without a common genetic risk responded reasonably well to treatment with the drug with improved ability to think and function.

Results on the new Alzheimer’s drug were eagerly awaited both in business as well as medical circles as it has the potential to change the course of Alzheimer’s disease instead of offering merely symptomatic relief to patients. Experts estimate that if proven to be effective without serious side effects, annual sales of the drug could reach up to US $ 13 billion.

-Kalyani Mookherji

World trade talks going on in Geneva broke down on Tuesday as each of the negotiating sides failed to reach a compromise. The intermittent negotiations between the industrialized countries and the developing economies have been going on for the last seven years. The final collapse of the talks has put an end to possibilities of freeing trade zones and cutting farm subsidies in the near future.

The World Trade talks were led by United States, representing the industrialized nations as well as India and China speaking for the newly emerging economies from the developing world. After nine continuous days of hectic bargaining, talks failed as both sides failed to reach a compromise on the issue of steps to safeguard farmers in the developing economies from the impact of greater trade liberalization.

The collapse of the World Trade negotiations has come as a severe disappointment to the pro-liberalization lobby which was hoping for an end to protectionism in the farming sector. It has also made a dent in the credibility of the WTO as an international body able to regulate the laws of global commerce. Finally the deadlock is an indication of the declining ability of the US to dictate terms and the growing clout of countries like India and China in the global economy.

-Kalyani Mookherji

Kennedy International Airport is set to put on a swankier appearance as more restaurants and high-end retail chains open their outlets within the airport. Many of its terminals reflect the trend of retail in airports, with the latest being Terminal 5 where in September 2008, JetBlue Airways plans to open a 635,000 square feet facility built at a cost of $743 million.

This heady mix of retail and travel has evolved due to several reasons. After the terrorist attacks of 9/11, people have been forced to arrive early for security checks at airports which means they can use more of their free time to dine and shop. Again as airlines increasingly prune off their food services, passengers feel the need to have a quick bite at the airport. Moreover the weak dollar has prompted the arrival of many foreign tourists who are ready to spend lavishly at upscale attractions in dining and retail.

Among the nineteen, high-end retail brands which have plans to open outlets at Terminal 5 of the Kennedy International Airport, is Muji, the exclusive Japanese store for clothing and homewares. The central food hall will be able to serve 800 customers and plans to offer a wide variety of cuisine created by reputed chefs from Manhattan. Several upscale retail stores are already operational in Terminal 4 and 8 of the airport.

-Kalyani Mookherji

The latest victim of the economic slowdown in the US seems to be the casual dining sector as restaurant chains shut down due to continued fall in customer base. Bar and grill-style eateries like Bennigan’s and Steak & Ale are being forced to close down many of its outlets across the country after its parent company filed for bankruptcy.

Soaring gasoline prices and higher living expenses in the US have led to significant changes in the spending habits of the average consumer. People are more reluctant to eat out or engage in casual spending at the mall. This has hurt not only mid-level restaurant chains but also retail outlets at large departmental stores. While retail chains like Mervyn’s file for bankruptcy, others like Linen ‘n’ Things, Sharper Image and Ann Taylor’s face the bleak prospect of closing many of its stores to minimize losses.

Another reason for the decline in the mid-tier restaurant business is the surfeit of outlets based on similar themes. Most of the bar and grill joints resemble each other in appeal, menu selection and even the décor. Bennigan’s and Steak & Ale are divisions of the Metromedia Restaurant Group which is owned by billionaire John Kluge.

-Kalyani Mookherji

Children continue to be the prime target of food commercials in the US, which was revealed to be a $1.3 billion business in 2006. This report, brought out by the Federal Trade Commission comes at a time when nutrition experts are repeatedly warning about the dangers of consuming unhealthy foods, especially in case of children and young adults.

The report studied data from such companies as Coca Cola, General Mills, Kraft Foods, Procter & Gamble as well as fast food chains like MacDonald’s and Burger King. The results showed that most of the advertisements sought to promote fast food, soda and cereals. For instance the biggest spender was the carbonated beverage industry shelling out nearly $492 million in advertising while the Milk Processor Education Program spent a modest $67 million on promotions.

In a first of its kind, the Federal Trade Commission compiled a report by studying confidential data from 44 food and beverage companies. The study especially focused on the amount of money that the companies spent on advertising directed to the age group of 2-17 years. However the report does not indicate how much individual companies spent on promoting each of their products nor does it differentiate junk food from nutrition-rich options.

-Kalyani Mookherji

Computer manufacturing company Dell has unveiled a new desktop PC model which is almost 80 percent smaller in size compared to the average desktop mini- tower. What’s more is that the new desktop is environment-friendly and saves up to 70 percent energy unlike other models.

The new Dell mini desktop is called the Dell Hybrid Studio and runs on Intel’s Core2Duo processor as well as Microsoft’s new OS, the Windows Vista. Computer experts have rated the new mini desktop high in style and basic functionality even as they agree that it is not built to offer a remarkable speed. However the mini desktop is powerful enough to drive DVDs as well as play Web audio and Video. The starting price of the mini PC has been pegged at US$499.

With its latest mini desktop, Dell hopes to take on the MacMini developed by Apple which is evident in the fact that the Studio has a bigger hard drive, larger memory and its standard configuration cost lesser. Dell’s eventual plan seems to make its presence felt in the market of family entertainment computers which is currently dominated by leaders like Hewlett Packard and Sony. The launch of Dell’s mini desktop comes in the wake of its plans to expand the company’s portfolio of both desktops and laptops in the coming months.

-Kalyani Mookherji