International Business News

DUBAI METRO OPENS!

In Dubai, the long awaited Dubai Metro opened some seven days ago and so far over 323,000 people have used the new transport system.

However there are still another 10 of 20 stations to be finalised and opened for commuters. How will it impact on Dubai? That remains to be seen as Dubai attempts to become the Las Vegas for the 21st Century or indeed the Entertainment Capital of the World (outside the United States at least!)

GLASGOW RAIL LINK AXED

Scottish ministers have been accused of being "anti-Glasgow" over the decision to axe the Glasgow Airport Rail Link amid concerns about spending cuts.

The city council said the move was "a dagger in the heart" of the west of Scotland economy.

Ministers highlighted significant investment in the city's transport, health and housing.

Up to £182m had been earmarked for improving the line between Glasgow and Paisley, with £47m already spent.

RECORD SALES FOR IKEA

Swedish furniture giant Ikea enjoyed record sales of 21.5bn euros ($30bn; £19.1bn), despite slowing growth.

Ikea said sales for the year to 31 August rose by 1.4%, down from 7% growth in the previous year.

"It has been a challenging year in which we have had to adapt to changed market conditions," said Ikea's new chief executive Mikael Ohlsson.

His predecessor slashed 5,000 jobs to cope with the drop in demand due to the financial crisis.

The company said it had opened 15 new stores worldwide since last September.


AIRLINE RAISES BILLIONS!

AMR, the parent of American Airlines, has raised $2.9bn (£1.8bn) of new financing to help it through the global downturn in air travel.

The group said $1bn of the total came from advanced sales of frequent flyer miles to Citigroup bank.

A further $1.6bn came from a sale and leaseback arrangement with General Electric's aviation division for planes it had already ordered.

The airline also said it would add capacity at key US airports.

Shares in AMR jumped 18% on the back of the news.

AFRICA ONLINE
A new high-speed undersea cable connecting East Africa with the rest of the world is poised to go live. The launch of the government-backed East African Marine System (Teams) comes as providers face a backlash over slow connection speeds and high prices.

Internet providers have increased speeds and lowered costs since the Seacom cable went live in August.

But users say services still remain too expensive for most ordinary Kenyans.

Senior government official Bitange Ndemo said there was evidence that some internet service providers (ISPs) were "fleecing the public".

Almost two months after the first high-speed cable made landfall, the highest residential internet speed offered by Kenya's largest ISP remains capped at one megabit per second (Mbps).

That speed is available only at night and at weekends, for an annual cost of $1,440 (£860). The average Kenyan annual wage is about $800, the UN estimates.