Business digest 04/12/06

China taking steps to close U.S. trade gap

WASHINGTON -- China has agreed to crack down on copyright piracy of American computer programs and lift a ban on U.S. beef as part of an effort to reduce a record $202 billion trade gap, the Bush administration said Tuesday. The agreements were two of several made by China during a high-level meeting designed to reduce trade tensions in advance of next week's U.S. visit by Chinese President Hu Jintao. Chinese Vice Premier Wu Yi said that China, at the direction of top country officials, has been working earnestly to increase imports from the United States.

Biotech firm reports boost in income

Biotechnology company Genentech Inc.'s 2-year-old hot streak continued Tuesday when it reported a 48 percent jump in first-quarter income, fueled by strong sales of its cancer medicines. For the quarter ended March 31, the South San Francisco, Calif.-based company earned $421 million, or 39 cents a share, compared with the previous year's first-quarter earnings of $284.2 million, or 27 cents a share.

Levi Strauss profit up despite sales downturn

SAN FRANCISCO -- Levi Strauss & Co.'s first-quarter profit rose 14 percent despite a sales downturn driven by persisting problems in Europe and Wal-Mart Stores Inc.'s recent de-emphasis of the jeans maker's discount brand. The San Francisco-based company said Tuesday it earned $53.8 million for the three months ended Feb. 26. That compares with net income of $47.3 million at the same time last year. Boosting profit this year was easier because the company suffered a $23 million setback last year to account for an early repayment of debt.

Japan holds off on raising interest rates

TOKYO -- Japan's central bank decided Tuesday to wait on interest raising rates from zero after abandoning its easy monetary policy a month ago. The Bank of Japan's unanimous decision, coming after a two-day policy board meeting, was in line with market expectations because the bank had made clear the transition to raising interest rates would be gradual. The central bank maintained its previous policy for five years to spur an economic revival, which now seems to be underway. In one sign that that the central bank had ended its easy monetary policy, the bank said it has allowed the amount of excess cash in the banking system to decline slowly.

General Motors selling its shares in Isuzu

TOKYO -- Cash-strapped General Motors Corp. is selling the shares it holds in truckmaker Isuzu to two Japanese trading companies and a bank for about $300 million to fund its turnaround in North America, the U.S. automaker said Tuesday. GM said last month that it will keep its business partnership with Isuzu, such as joint development and manufacturing of trucks and diesel engines.

-- From wire reports