Home' Trinidad and Tobago Guardian : April 22nd 2015 Contents Ford CEO Mark Fields talks about the company's growth in China at the Shanghai Auto Show in
Shanghai. Ford showed off its new Taurus and Nissan unveiled a midsize sedan designed for China at the
exhibition that highlighted the commercial resurgence of lower-priced Chinese auto brands. AP PHOTO
Guardian www.guardian.co.tt Wednesday, April 22, 2015
HOUSTON---Halliburton Co has cut
9,000 jobs---more than ten per cent
of its workforce---in about six months
and is considering more cost-cutting
moves as falling oil prices sap
demand for its drilling help.
Halliburton executives disclosed the
job cuts on a conference call with
investors. The Houston oilfield-ser-
vices company reported a loss of
US$643 million in the first quarter.
Oil prices plunged starting last sum-
mer, leading to a decline in drilling
activity. Spot prices for crude have
risen slightly since early January but
remain about half their level of last
That has led to belt-tightening
across the industry as oil companies
move to curb production, with oil-
field services and drilling companies
especially hard hit. Haliburton s oilfield
rival Schlumberger Ltd said last week
that it would cut 11,000 jobs on top
of 9,000 planned job cuts that it
announced in January.
Schlumberger and Halliburton help
map underground oil and gas reser-
voirs and drill wells for energy com-
Halliburton is a leader in hydraulic
fracturing, or the process of breaking
underground rock formations to allow
oil and gas to escape.
Halliburton president Jeff Miller
said he wasn t ready to say the worst
has passed, but that such slumps usu-
ally last about three quarters.
"Once we see activity stabilise, the
healing process can begin, but it takes
time," he told analysts.
US drilling activity has dropped by
half since November, and energy com-
panies are pressing Halliburton to
About two-thirds of Halliburton s
revenue comes from North America,
and executives said they expect that
revenue to decline from the first quar-
ter to the second.
The oil-market decline caused Hal-
liburton to take US$1.2 billion in
charges in the first quarter, including
severance and write-offs, said the
company s acting chief financial offi-
cer, Christian Garcia.
"Over the last two quarters, we have
reduced our head count by approx-
imately 9,000 employees, more than
ten per cent of our global head count,"
he said on the conference call.
Garcia added that additional moves
are likely in the second quarter but
will probably result in much smaller
Halliburton said Monday that it lost
US$643 million, or 76 cents per share,
in the first quarter compared with net
income of US$622 million a year ear-
Still, the results excluding US$823
million in severance, write-downs and
other one-time costs amounted to an
adjusted profit of 49 cents per share,
beating the forecast of 41 cents among
19 analysts surveyed by Zacks Invest-
Revenue fell 4 per cent to $US7.05
billion, higher than analysts estimate
of US$7.03 billion. (AP)
WASHINGTON---Major US labour unions
and business groups clashed yesterday over
President Barack Obama s bid for "fast
track" authority to advance trade deals
being negotiated with numerous nations.
Fast track authority lets Congress reject
or endorse---but not amend---proposed trade
deals backed by the president.
Labour federation president Richard
Trumka told the Senate Finance Committee
that the fast track legislation would rob Con-
gress of a meaningful role in shaping trade
"The idea that fast track lets Congress set
the standards and goals for the TPP is an
absolute fiction," Trumka said, referring to
the pending 12-nation Trans-Pacific Part-
Obama is likely to send Congress the
Pacific-rim proposal if he wins fast track
approval. Trade deals with European nations
and others could follow.
Trumka said the Pacific-rim deal "has
been under negotiation for more than five
years and is essentially complete. Congress
cannot set meaningful negotiating objectives
in a fast track bill if the administration has
already negotiated most of the key provi-
But Thomas Donohue, president of the
Chamber of Commerce, a business advocacy
group, said fast-track authority is crucial to
ratifying deals that would help US producers
reach big foreign markets.
Without fast track, Donohue said: "The
United States is relegated to the sidelines as
other nations negotiate trade agreements
without us, putting American workers, farm-
ers, and companies at a competitive disad-
Most congressional Democrats oppose
fast track, and the Obama administration is
scrambling for as much support as possi-
ble.Sen Charles Schumer, a Democrat, said
the administration must press China to stop
manipulating its currency, even though China
isn t a party to the Pacific-rim negotiations.
"We need to do more against China,"
Schumer said at the committee hearing.
If a nation keeps its currency value arti-
ficially low, it boosts exports by making local
products more affordable to foreigners. Econ-
omists disagree on whether China still
engages in the practice.
Sen Mark Warner is among the Democrats
who support the trade proposals. The Pacif-
ic-rim negotiations aren t perfect, he said,
but they would require the participating
nations to improve standards for workers
rights, among other things. "Let s not miss
the opportunity for America to once again
reassert its leadership" in trade, Warner said.
The Senate could vote fairly soon on the
fast track bill. Leaders of the Republican-
controlled House leaders could follow suit
if they think they have the votes to pass it.
Union will massively increase
funding this year to fight youth
unemployment and is set to pro-
vide one billion euros (US$1.08
billion) to kick-start projects to
create jobs for young people.
Almost one in four young
Europeans is out of work across
the EU s 28 member countries.
One in two was jobless in Spain
and Greece in late 2014.
The EU had been planning to
stump up 67 million euros in
2015, but EU headquarters said
in a statement yesterday that with
just those funds "it is not possible
to reach the critical financial
The increase comes as tight
budgets prevent some nations
from investing in projects likely
to foster jobs for young people.
9,000 jobs in
wake of oil's drop
Labour, business clash over trade before US Senate
AFL-CIO president Richard Trumka, right, and US Chamber of Commerce President Tom
Donohue prepare to testify on Capitol Hill in Washington, yesterday, before a Senate
Finance Committee hearing on fast track authority. AP PHOTO
EU steps up funding to create jobs for young people
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