EUROPEAN MARKETS

EUROPEAN STOCKS RESILIENT AFTER VOTE; EURO HITS 7-MONTH LOW

The French stock market shook off losses by the end of the session yesterday, as a weaker euro from the political turbulence caused by voters rejecting the European Union constitution gave a lift to companies that sell goods and services in America. The euro fell 0.9% to $1.2464, a seven-month low. The French CAC 40 (PX1) index rose 0.1% at 4,134, the German DAX 30 was up 0.8% at 4,472, and the Dutch AEX rose 0.4%. The British and American markets were closed, impacting liquidity elsewhere. Weeks of opinion polls pointing to a victory of the “No” vote had allowed markets to in part price in its implications. “The economic consequences of the no are limited because the markets had anticipated this result. The euro is down against the dollar and will continue to decline but that’s not bad news. It confirms the difficulty of Europe to be an area of growth and let’s hope it will give us a new energy,” said Marc Touati, chief strategist at Natexis Banques Populaires.

– Dow Jones Newswires

MANUFACTURING

GE TIES UP WITH INDIAN COMPANIES TO RESTART ENRON POWER PLANT

NEW DELHI – General Electric said yesterday it has tied up with two of India’s state-owned energy companies to restart a power plant built by the bankrupt Enron Corporation. After its bankruptcy, Enron’s majority stake in the power plant in western India was transferred to GE and Bechtel Group, which earlier held 10% equity each. Currently, GE and Bechtel together hold a controlling 85% stake in the plant at Dabhol in Maharashtra state. GE’s India head Scott Bayman said the company has joined National Thermal Power Corporation – India’s main generation company – and Bharat Heavy Electricals – the country’s leading power equipment manufacturer – “to determine a course of action for restarting and completing the Dabhol Power Project.” The announcement came days after GE Chairman and CEO Jeffrey Immelt visited India, during which he said talks were held with top government officials to find a way to restart the project. The 2,184-megawatt Dabhol project, India’s largest foreign investment project to date, was shut down in June 2001 after a dispute over electricity tariffs between then-owner Enron and its only customer, the Maharashtra State Electricity Board.

– Associated Press

PRESS

NEW YORK TIMES TO START FREE CLASSIFIEDS PAPER

The New York Times is planning to launch a free weekly tabloid publication June 9. Crain’s New York Business reports that the giveaway, to be called MarketPlace, will consist of classified advertising leavened with articles from the daily newspaper. Street hawkers will hand the publication out to commuters on their way home, Crain’s said.

– Staff Reporter of the Sun