Business Round-Up

A look at what's happening around the globe

Alstom, Gaz de France, Total and Bull signed contracts worth more than '€5bn as part of the three-day visit to Algeria by France's president Nicolas Sarkozy. The contracts are to build power and petrochemical plants, buy natural gas and renovate the data systems in post offices of the former colony. They reflect Sarkozy's efforts to strengthen ties with Algeria as part of his broader plan to forge greater pan-Mediterranean economic cooperation. Total, the oil company, agreed to build a petrochemical complex in the western city of Arzew. Alstom, which makes power plants, will supply three gas turbines as part of a '€1.35bn contract won jointly with Orascom Construction Industries of Egypt, to build a power plant in Terga, 600km west of Algiers. Bull, the largest French computer maker, will renovate the Algerian postal network's information systems. Gaz de France extended through 2019 its contract to purchase Algerian natural gas for '€2.5bn.

German chancellor Angela Merkel slammed top-earning managers and called for 'intelligent regulation' of global financial markets to woo leftof- centre voters ahead of key regional elections in January. In a veiled reference to Wendelin Wiedeking, CEO of Porsche, who is reported to have earned at least '€60m in 2007, Merkel slammed the adoption of US-style compensation by German managers. 'Just because an American car executive makes a thousand times what an employee earns, it seems a German car manager should also get the kind of rise he would never grant his workers.'

Roman Abramovich has won the battle of the oligarchs to buy a 40% stake in London-listed gold mining company Highland Gold. The Chelsea Football Club owner beat Alexei Mordashov, the chairman of SeverStal, Russia's largest steel company to his prize, for which he will pay '€270m via his asset management company, Millhouse. Highland will use the funds for its development programme and to reduce its reliance on debt financing. The company owns several development and exploration projects in Russia, including the Mayskoye deposit in Chukotka, the northeastern region of which Abramovich is governor. Last year Highland produced 167,544 ounces of gold, about 3.2% of Russia's total and plans to increase output to 200,000 ounces by 2009.

Falling retail sales in the eurozone have highlighted the shaky economic outlook for the region. Retail sales dipped 0.7% last October to a level just 0.2% higher than the same month a year before, according to Eurostat. Despite the revival in eurozone growth prospects in the past few years, retail sales have, at best, shown only modest growth since the start of 2007, dragged down in particular by Germany. But rising inflation, which hit 3% in November, appears to have been undermining consumer sentiment and reducing spending. German and Spanish retail sales were 3.3% and 0.3% lower in October than in September. German sales were 3.4% lower than a year before, while Spain's were up 1.4%.

Fashion and sport are snuggling up even closer. French luxury goods group PPR reported that its third-quarter sales were up 22%, boosted by sales at its newly acquired German sporting goods business, Puma. PPR, owner of prestigious luxury brands Gucci and Yves Saint Laurent, said sales in the period rose to '€5.2bn from '€4.26bn a year ago. On a comparable basis, PPR sales rose 6.8% in the period. PPR added Puma to its portfolio in April after paying '€5.3bn for two-thirds of the German company. The sporting goods company added '€670m to sales in the period. Meanwhile, another sporting goods company Adidas has struck a four-year collaborative deal with Italian fashion label Diesel. A new line 'Adidas Originals Denim by Diesel' will hit stores in February.