Bizwatch

The Blame Game
Not for nothing do they call economics the dismal science. Consensus held that a plummeting dollar — making U.S. exports more affordable — and a drop-off in the price of oil would shrink the country's yawning trade deficit. Instead, it leapt to a record $60.3 billion in November, up from $56 billion a month earlier. How to explain the missed call? Moody's Investors Service labeled it "an atrocious month for U.S. exports," suggesting "ineffective business and government leadership may be to blame."

But U.S. Treasury Secretary John Snow found a handier target: America 's major trading partners aren't buying their fair share of U.S. goods. "We need Europe to be more of an engine of growth," Snow pleaded. So who should budge? "Ultimately, the solution lies at home," says Professor Barry Eichengreen, a California-based fellow for London 's Centre for Economic Policy Research. America 's households

INDICATORS Wrong Numbers Canadian telecom equipment maker Nortel Networks finally restated its 2001-03 results — revealing a 41% cut in profits for 2003. Twelve executives, not implicated in the inappropriate accounting, volunteered to repay $8.6 million in bonuses. No Delays The planned resignations of three top execs from Irish state-owned carrier Aer Lingus, initially scheduled for May, were sped up amid reports they planned to launch a rival airline. Out Of Print A worker at British book chain Waterstone's became the first in the U.K. to be fired for writing a personal weblog. Joe Gordon — who lampooned his "evil boss" online — will reportedly appeal.

and government need to boost saving and rein in spending, Eichengreen insists. If the U.S won't stop living beyond its means, foreign financing for the U.S. 's current account deficit "could dry up." That really would be dismal.

Losing The Controls
The French government has pledged to support "national champions" in strategic industries vital to the country, such as pharmaceuticals, aircraft manufacturing and... video games? Amid a national debate over industry policy, Paris is close to a deal to give 325 million in annual tax subsidies to France's video game publishers, on top of the 35 million it already hands out to promote innovation. The industry accounts for just 10,000 jobs and about 31 billion in revenues, but it has leapt to the center of national attention following the December purchase by U.S. giant Electronic Arts of a 20% stake in French rival Ubisoft.

"There's a lot of creativity in France, and we don't want to end up as another sweatshop for video gaming like India or Morocco," says Romain Poirot-Lellig, director of the industry association APOM. EA says its intentions are not hostile and industry sources in the U.S. point out that one of Ubisoft's best-selling games is — mon dieu! — that great French cultural gem, Tom Clancy's Ghost Recon. — By Peter Gumbel

Apple Gets Hard Core
Profits at Apple more than quadrupled to a record $295 million in the first quarter, thanks to a 525% jump in sales of the iPod. Meanwhile, the computer maker unveiled the Mac mini, a cut-price desktop, and a no-frills, smaller iPod.

The Bottom Line
	I want you to think about a Social Security system that will be flat bust... unless the United States Congress has the willingness to act now
		GEORGE W. BUSH, U.S. President, urging domestic pensions reform