"In October, ArcelorMittal announced their acquisition with a 90% stake in the privately owned Chinese company Rongcheng Chengshan Steelcord which is based in the Shandong province.
 Lakshmi Mittal, President and Chief Executive of ArcelorMittal declared the importance of expansion by saying :
“We have already shown through our joint ventures in China the value and skills we can bring the Chinese steel industry …. As well as showing our commitment to the broader Chinese steel market, this acquisition also underlines our commitment to the wire business specifically and recognises China’s leading position in this sector.”
 
The company forecasts a turnover of 71 million US dollars  for 2007 and the Mittal stake was acquired for the sum of 26.6m US Dollars.
"Also in October, the steel industry was divided over the merits of publicly disclosing data from an ambitious environmental monitoring scheme that it plans to start to help combat global warming.
The Brussels-based International Iron and Steel Institute, which represents most of the world’s top steelmakers, intends to encourage all leading steelmakers to collect information from plants about how much carbon dioxide they emit. The data could be used to draw up performance standards for the best and worst in terms of how much carbon dioxide, (the main greenhouse gas implicated in global warming,) they produce per tonne of steel manufactured.
Steel plants produce about 4 per cent of total man-made worldwide carbon dioxide emissions.
Lakshmi Mittal, of Luxembourg-based Arcelor Mittal, the world’s biggest steelmaker, said he had yet to be convinced the steel industry would benefit from sharing data with the outside world he went to to say “I think we should concentrate on getting the mathematics right before discussing whether to make the information public.”"

In November "ArcelorMittal received the final go-ahead from its investors to complete the merger between Mittal Steel and Arcelor at a shareholders meeting on the 5th November.
In June 2006 Arcelor shareholders accepted a 26 billion euro offer from Mittal, but investors representing 6 percent of the stock decided not to tender their shares.
At a separate news conference , minority shareholders said they would launch legal proceedings against ArcelorMittal over the merger terms.
The shareholders -- Deminor, Trafalgar and SRM Global -- have said they represent 9 million shares. They argued the exchange ratio is too low and tried unsuccessfully to stop the merger."

The jobs which are affected are in the areas of central functions and IT operations. The Group aims to reduce its cost base by €50 million in 2008, and by €75 million in 2009. From 2010 onwards, the full potential of the program, the company says, will be realized with annual savings of €100 million.
Reduced non-personnel related costs will contribute around 95 percent of the savings in 2008, around 90 percent in 2009 and around 85 percent from 2010 onwards.
Out of the 300 jobs lost in Luxembourg and Frankfurt 200 will be transferred to Prague where the company has had a subsidiary since 2006."

"Also in November, Deutsche Boerse said its Clearstream unit is selling its Luxembourg headquarters to real estate firm IVG for 350 M€.
The purchase will generate a one-time gain of around 120 M€ which Deutsche Bourse will book during 2008.
Clearstream will, however, continue to rent office space in two of the four buildings at the complex.
IVG Immobilien AG is one of Europe’s largest listed property companies which special izes in office properties and storage facilities and currently manages property assets with a total value of €19 billion."

"Deloitte Luxembourg announced a turnover growth of 17% in the period between June 2006 and May 2007, which amounted to almost 100 million Euros. The company has seen growth across the board in all of it’s activities.According to Managing Partner Maurice Lam the company has not witnessed any remarkable slowdown in recent months despite the crisis in the global financial markets.The company has seen a 20% growth in services to the Financial sector notably in the area advisory and consulting. And the Tax Department saw a growth of 42%.In 2007 Deloitte recruited 280 new personnel."

"A takeover battle in the German banking sector seemed to be on the horizon after another lender indicated an interest in buying Deutsche Postbank.
Earlier this year Commerzbank expressed an interest in buying and in November Deutsche Bank announced it too is interested in acquiring Germany’s largest retail lender.
Although Deutsche Postbank is currently not for sale, its parent Deutsche Post is expected to sell it next year. Deutsche Postbank is worth about 9bn euros.
With almost 15 million customers, Deutsche Post is expected to put it up for sale once the country's domestic postal market is deregulated next year.
Deutsche PostBank International has 140 employees based at its headquarters here in Luxembourg. "

"John Li chairman of KPMG Luxembourg announced in October a record 33.6% growth in turnover and a 26% increase in personnel for 2007. This amounts to 253 new recruits with a total of 745 personnel working in Luxembourg.However, it is recruitment which John Li says is one of KPMG’s biggest challenges, with the war for talent in Luxembourg, the company was obliged to look further afield. Equally, he says the turnover of staff has always been a problem so the company has addressed this by continuing to offer salaries in line with banking institutions and providing training to retain staff.To accommodate this growing workforce KPMG have recently acquired premises in Strassen whilst having further sites in Luxembourg ville and Limpertsberg. Amongst the challenges which KPMG face in 2008 is the possible regionalization of it’s network. Since 2006 KPMG Germany, Great Britain and Switzerland have fused their activities and become one entity KPMG Europe. Luxembourg will decide over next 3 months whether to join them."

"In october, PWC gathered together 140 representatives from businesses of the non-financial sector for the 8th annual edition of the forum to discuss the current economic situation in both accounting and taxation terms. Experts from PWC gave their reflexions in the areas of commercial, accounting, social and taxation law.The conclusion was that a real big bang structural reform is what the representatives of the non financial sector are waiting for.An important issue addressed by the participants was the general onerousness and expense of administrative restraints imposed on companies in Luxembourg.  The participants of the forum expressed their regret that the law concerning contribution and wealth tax had not been abolished entirely. They would also like to see a lowering of the rate of le revenue des collectivités from 29% to 25% Since meeting last year they feel little has been done to addresss their concerns."

"KPMG has warned that businesses would face a “complex and disproportionate burden” if the package of VAT reforms was approved by EU’s finance ministers.
Telecommunications companies, satellite broadcasters and digital service providers will be required to levy VAT in the country where services were consumed rather than where the company was based. The proposal is designed to prevent the distortions that have led online businesses to be attracted to low-VAT countries such as Luxembourg.
KPMG says the VAT package will create administrative problems for businesses that supply their services to consumers across the EU because, instead of having one VAT rate, one set of rules and one tax authority to manage, the businesses will have up to 27.The online industry also faces technical challenges in how it identifies the location of a consumer. "

• "At the start of October European finance ministers failed to find common ground on tackling the euro's appreciation to a record against the dollar as they prepared for a meeting of the Group of Seven nations.`I prefer a strong euro,'' Germany's Peer Steinbrueck told reporters at a meeting of euro-area finance ministers in Luxembourg, a comment echoed by counterparts from the Netherlands and Austria. France's Christine Lagarde, whose government has said the European Central Bank should do more to curb the currency's gain, said she didn't feel isolated as she arrived for the gathering. Officials from the 13 nations that use the euro differ on how to respond to the currency's rally.
• European Union finance ministers also considered new disclosure rules for banks after losses caused by the sudden increase in credit costs.The EU should assess by the middle of next year whether to require more disclosure of debt-default risks and revise how assets are valued."
  
• "Also in October Euro group president Jean-Claude Juncker said France's budget plans did not meet the expectations of euro zone finance ministers, adding that they would return to the question in 2008.
  He said 'We felt that the draft budget was not entirely in line with our expectations,'
  He went on to say 'We feel that if any country would not meet the objectives in 2010 it should adjust its expenditure accordingly,' He nevertheless said that France's proposals were 'ambitious and deserve our support because they are very much in line with' the Lisbon agenda of structural reforms."
  
• "After failing to find a common position on the Euro’s rally to a record high against the dollar, European Finance Ministers urged China to allow the Yuan to appreciate against their currency.
  European officials, who were preparing in Luxembourg a meeting of the Group of Seven nations in Washington, were becoming irritated with China after a July 2005 revaluation of its currency failed to stem trade imbalances between the two economies. While the yuan has gained almost 10 percent versus the dollar in the past two years, it has fallen more than 5 percent against the euro in the same period. Joaquin Almunia, EU Commissioner for Economic and Monetary Affairs travelled to China in November with European Central Bank President Jean-Claude Trichet and Luxembourg Prime and Finance Minister Jean-Claude Juncker to discuss the matter with their Chinese counterparts."
  
• "November 1 saw the official introduction of new European share trading rules intended to facilitate cross border transactions but not all member states appear ready to play ball ;
  The 27 EU states were legally bound to introduce the Markets in Financial Instruments Directive or MiFID into national law by the 31st of January this year. It was expected that the 9 months before go-live would allow banks, exchanges and investment firms time to prepare. By the end of July, however, Luxembourg was among only 8 of the 27 to have introduced MIFID into Domestic Law.  A senior EU official said they had already started legal proceedings against member states that would not be ready in time, and that lack of action would risk damaging the efficiencies of companies in their own countries. He added 'We now expect 23 member states to be pretty much ready in the next few weeks,', but said that Spain, Hungary, the Czech Republic and Poland were in the 'slowest group'"
  
• "EU states met in Brussels to discuss car taxes and the reform of the bloc’s VAT system.
  The European Commission wants to restructure car registration and circulation taxes so that they are totally or partially based on how much carbon dioxide the car emits.The initiative is part of the EU's overall strategy to cut carbon emissions to meet self-imposed targets and commitments under the Kyoto Protocol.
  
• EU states were also still struggling to reach a deal on sweeping reform of the bloc's VAT system.The Commission wanted to change the location for levying the sales tax on electronic services, such as radio, television and online services, to where they are consumed.At present the tax is levied where the service originates, which has prompted many providers such as Skype to base offices here in Luxembourg.At this time meetings of EU member state working groups had failed to come up with a solution. Luxembourg vetoed a deal in June for fear that many such businesses would move elsewhere. The debate continued. "It may have come as no surprise that EU finance ministers half way through November had still failed to reach an agreement on VAT reform. The European Commission and ministers had said they hoped to resolve the problem by the end of the year, but Jean Claude Juncker said he would not agree to a compromise “neither today nor in December”
  Whilst 18 or 19 member states were happy with the compromise, which would see the implementation date for reform set back several years, Luxembourg was holding out for a revenue-sharing system where a portion of the revenue received by the supplier's state would be passed to the consumer's member state.At 15% Luxembourg has the lowest rate normally allowed in the EU."
  
• "The EU is set to launch new proposals to reform the telecoms sector, in a bid to increase competition and create a single market.Viviane Reding Luxembourg politician and European Commissioner for Information, Society and Media said that draft proposals are expected to include plans to create a regional watchdog and give Brussels greater power to change the decisions of national regulators. The plans are yet to be approved by the EU's 27 member states.The proposal follows another regulatory measure pushed through by the Commission, which tackled the high costs of cross-border mobile phone use by imposing a price ceiling on roaming charges."
  
• ""Jean Claude Juncker, Luxembourg Prime and Finance Minister said in November that all European leaders are concerned about the strength of the Euro. However, he believes that governments should refrain from commenting on the euro saying “it would be better” to leave the matter to the European Central Bank President, Jean-Claude Trichet.
  M. Juncker rejected calls by French President Nicholas Sarkozy for greater political influence on the ECB's monetary policy, saying “the vast majority of member states from the euro region has no problem with the independence of the ECB and would mount considerable opposition to a weakening of the central bank.'' "
  
• "At the end of November the eurozone sent a high-level delegation for the first time to discuss macroeconomic issues with China and in particular to voice it’s concerns over the country’s exchange rate policy.
  Jean-Claude Juncker, the Luxembourg Prime Minister and chairman of the Eurogroup of finance ministers, was accompanied by Jean-Claude Trichet, the European Central Bank President, and Joaquin Almunia, the European Economics Commissioner.They met with the  Chinese Prime Minister and Finance Minister and also with the Governor of the Chinese Central Bank.The unprecedented visit reflects growing demands for China to move more quickly towards a normal exchange rate and to allow the yuan to appreciate at a faster pace. Jean-Claude Juncker  said the yuan was now undervalued by 20-25%, giving China an unfair trade advantage.The EU's trade gap with China is expected to reach €170 billion for the year 2007 – nearly 30% higher than in 2006."
  
• "Finally, on the 4th of December, after 5 years of stalemate, EU officials agreed that, as of  2015, VAT on electronic services will be charged at the rate where the consumer is located.EU finance ministers agreed the switch as part of a sweeping reform of the bloc's VAT system.The reform aims to reflect the huge growth in online services, a sector that did not exist when the EU introduced its VAT rules.Luxembourg had vetoed a deal twice so far this year. The Grand Duchy has said it would lose the equivalent of 1 percent of its economic activity, or 220 million euros  a year, with the reform and held out for transitional measures to ease the pain.The change will affect all businesses that provide telecom, radio and television broadcasting and electronic services to end consumers, rather than to another business, in another EU state.In return for giving ground, the change will not come in until 2015, five years later than the 2010 date originally proposed by the EU's executive European Commission."
  

• "Luxembourg’s Prime Minister Jean Claude Junker announced details of tax reforms which will benefit low income families with children.From March next year the children’s allowance of 922.50 Euros will be applied with the tax band being lowered to 6%. Approximately 40% of families in Luxembourg do not pay income tax as their earnings fall below the tax threshold. "
• "In a report issued by the OECD the Organisation for Economic Cooperation and Development, in October, Luxembourg was highlighted along with 3 other counties as falling short of the necessary guidelines for financial transparency. It said that some countries are still not doing enough to counter tax evasion, having significant restrictions on access to bank information for tax purposes in Luxembourg, Austria, Switzerland and Singapore.It went on to say that “many financial centres, both onshore and offshore, are making progress in improving transparency and international cooperation to counter offshore tax evasion, but some still fall short of international standards that have been developed over the last seven years.” The OECD argues that this lack of transparency and a failure to cooperate internationally create conditions that can be exploited by dishonest taxpayers to evade their tax obligations. Luc Frieden was challenged in the Luxembourgish Parliament as to the gaps in the scrutiny of the Financial sector. Deputy Colette Flesch demanded an explanation on the cooperation between the CSSF the Commission for surveillance of the Financial Sector and the BCL the central bank of Luxembourg which in her mind did not function in a satisfactory manner. Luc Frieden was quick to rebuff this suggestion and stated that the regulatory rules in Luxembourg exceeded those than in many other countries."
  
• "Jeannot Krecké made his traditional opening speech in October, at the Autumn Fair in which he outlined his proposals for the continued growth of the Luxembourg economy.The main objective being to keep inflation under control. - At 2.2% the current rate of inflation remains well under the average of  European counterparts. Krecké did warn, however, that inflation was expected to rise towards the end of the year and he called upon individual businesses in the Grand Region to recognize their responsibility to keep prices and wages in check. Krecké also confirmed the setting up of a ""Luxembourg for Business"" agency to promote the Grand Duchy for foreign investors."
  
• "The Government of Luxembourg will provide 3 million EUR in aid for Vietnam to develop it’s capital market in line with a bilateral protocol signed in Hanoi on October 12th.Finance minister Vu Van Ninh and Jean-Louis Schiltz, Minister for Development Cooperation and Humanitarian Affairs, signed the protocol during his visit to Vietnam last week.This first Luxembourg financial delegation to Vietnam was headed up by the Minister and the delegates included representatives from the Luxembourg Investment Funds Association (ALFI) and the Luxembourg Banker’s Association (ABBL).The objectives of the protocol include establishing a system to monitor the capital markets and it’s intermediaries. "
  
• "Already operational for several months, the extension to the Ecostart Centre at Foetz was officially inaugurated in October, by the Minister for Economy Jeannot Krecké. Designed to incubate and give help to start ups with innovative ideas.Currently, Ecostart is overseeing 7 companies which employs around 50 people. A third site is planned for 2009 at Esch-Belval.Le Centre d’enterprises et d’innovation Ecostart is managed by Luxinnovation which offers support in terms of helping with business plans, seeking finance and promoting the start up. With the ultimate aim of setting up in their own location. Since 2004, 2 businesses have left the site and are now installed in their own premises.
  
• "STATEC has revised the growth forecast for Luxembourg downwards from 6% to 5%, while the forecast result for 2008 is estimated at 4.5%.According to the report Luxembourg GDP indicated a moderate slowdown in the first half of 2007, after a growth of more than 6% in 2006. "
  
• "Jeannot Krecké Luxembourg’s Finance Minister was busy in November, in the Far East.He signed an agreement with Hong Kong on the avoidance of double taxation. The agreement will eliminate double taxation instances encountered by Hong Kong and Luxembourg investors, and bring about tax savings and certainty in tax liabilities in connection with cross-border economic activities.It is hoped it will also help foster closer economic and trade links between the two countries and provide added incentives for Luxembourg companies to do business or invest in Hong Kong.The agreement is planned to come into force in 2008 on April 1 in Hong Kong and January 1 in Luxembourg.
  
• And in Shanghai Jeannot Krecké unveiled Luxembourg’s plans for it’s national pavilion for the Shanghai 2010 World Expo, giving visitors a preview of it’s unique “forest and fortress” scene.  The 15m high main structure will resemble an ancient castle with large openings surrounded by medieval towers. Luxembourg is the fourth country to sign contracts for the Shanghai World Expo. The estimated cost of the pavillion is said to be around seven million euros."
  
• "2 prominent members of the business world were presented, in November, with the insignia of Commander of the Order Of Merit of the Grand Duchy.Jean Claude Juncker honoured Candice Johnson in recognition of her commitment and her merits for Luxembourg, particularly in the context of global development of the telecommunications sector via satellite.During the ceremony the Prime Minister paid tribute to her pioneering spirit and her role in the development of the first projects in Luxembourg satellite in 1980 and the creation of the European Society of Satellites (SES), the first private operator of Satellites in Europe.And the Minister of Economy and Foreign Trade, Jeannot Krecké, presented the award to Jan Bergmann, ex site manager of DuPont Luxembourg.Mr Bergmann was appointed in February 2007 to the post of head European DuPont Performance Coatings, which brings together some thirty sites spread across Europe. Prior to this he was responsible for both the Tyvec and Typar products. "
  
• "In November Jeannot Krecké, the Minister for Economy and Foreign Trade, in the presence of Luc Frieden, the Minister for the Treasury and Budget, formally presented “Luxembourg for Business” an agency whose aim is to promote the Grand-Duchy. The ministry has taken this initiative to create a collaboration between the government and the private sector. The mission of the agency is to obtain a more effective coordination of all the different players involved in positioning Luxembourg as the site of first choice for investment, trade and tourism. The initial budget for this venture stands at 8.6 million Euros of which 5 million will come from the state and 1 million from the Chamber of Commerce. The rest will be financed by the other members of the agency. In addition the agency will have an annual budget of around 450,000 Euros.
  
• "Also in November, Economy Minister, Jeannot Krecké, revealed more of his plans to redevelop the 52 hectare former military site WSA into “Luxembourg Eurohub” He announced he had signed contracts with 2 French logistics companies Sogaris and Trans Alliance.Transalliance were due to begin their operation on December 1st and move into existing buildings.There will also be a joint venture between the Luxembourg Government and Sogaris in which the government will have a 45% stake. That infrastructure should be in place by October 2009 and there are plans for more than 1000 new jobs."
  
• Prime Minister Jean-Claude Juncker and President of the Eurogroup are Meeting met under a cloud of pessimism in November, at the committee for ""Economic and Financial Affairs” in Brussels.The European Commission reported that Economic growth across the EU will slow in 2008 because of a weaker US economy and problems in global financial markets. Brussels is now forecasting 2.4% growth in the 27-member union in both 2008 and 2009, compared to 2.7% this year.
  In the 13-member eurozone the predictions are less optimistic, growth is expected to slow to 2.2% next year, down from the 2.6% projected for 2007.
  Among the subjects discussed were an attempt to find a common approach to the issue of reduced VAT rates and try to reach a political agreement on the introduction of environmental criteria in the taxation of private vehicles. The Council will also held an exchange of views on the issue of financing for satellite navigation system Galileo. "
  
• "it seems not everyone was pleased about the Minister of Middle Classes  decision to allow Sunday afternoon opening for shops in Luxembourg Ville, till the end of the year. The OGBL-L said that Fernand Boden’s decision was deplorable and was made without the consultation of the unions. The unions believe that employees in the commerce sector not only work in difficult conditions but are often also badly paid. To this effect the OGBL-L have announced they will seek a collective agreement with the commercial union of Luxembourg Ville with the aim of reversing M. Boden’s decision. Watch this space ………. "
  
• "November saw the association ADA ‘Appui au Développement Autonome’ or ‘Empowering the world’s poor’ open it’s new microfinance house in Luxembourg.The inauguration of this unique space dedicated to the promotion of micro finance took place in the presence of ADA’s patron the Grand Duchess Marie Therese and Jean Louis Schiltz, the Minister for Cooperation and Humanitarian affairs.   ADA is a non-profit making, non governmental organization based in Luxembourg. It provides technical and financial assistance to Microfinance Institutions (MFIs) in Africa, Asia and Latin America with the aim of them giving financial support to the underprivelaged to empower them to become independent. ADA has an annual budget of 3Mil Euros and collaborates with 25 MFIs.During the proceedings M Schiltz announced the 3rd edition of the Microfinance week which took place from the 27th to the 29th of November at the Abbey de Neumunster."
  
• "Mars di Bartolomeo, Luxembourg Health Minister was delighted to present the 2007 Luxembourg Quality Prizes in Mondorf in November – all the more satisfying for him was the fact that 3 of the 6 laureates were in the health sector:
  Laborotoires Reunis and the Pharmacie of the Emile Mayrisch Hospital were both congratulated and the Psychiatric dept of the Kirchberg Hospital won a special European prize.Other winners were DHL, the Imprimerie Centrale and small engineering company Argest.Di Bartolomeo referred to health sector “difficulties” of recent months but assured those present of his commitment to continuously improving the quality of the health service in Luxembourg."
  
• "Luxembourg announced the expansion of its ‘hotcity’ wireless internet project, from the first of December coverage was extended and new services launched with its technical and operating partner P&T Luxembourg.Since July 2007 Luxembourg offers public wifi access in the Ville-haute area of the city. From the 1st December the Gare district will also be covered.Services include a localized search function for shops, restaurants and cash dispensers - all extremely useful during the impending Christmas shopping period.  Luxembourg will need approximately 500 antennas to deliver interruption-free wireless internet access in every part of the city. Cisco Systems will deliver the infrastructure, while Telindus will provide the integration.The Grand Duchy is set to become the first city in the Benelux region with wireless internet by the end of 2008. Future services will feature an electronic guide and an emergency service for the elderly.For more information visit hotcity.lu"
  
• "STATEC reported that, as throughout Europe, prices are rising in the Grand Duchy, with an annual rate of inflation that reached 3.2% in November.This is bad news for Jeannot Krecké who has said that keeping inflation under control is one of his main priorities.According to STATEC the index of Consumer prices over one month has increased by 0.38%. The most significant increases have been in fuel and food prices and in particular dairy products. For many years Luxembourg has applied an automatic indexation system for the adjustment of salaries, pensions and benefits. The last increase was 12 months ago and the next one is planned for the 1st March 2008 and will be at the rate of 2.5%."
  
• Luxembourg’s Prime Minister Jean Claude Juncker met with Mustafa Jassem Al Shamali the Minister of Finance for the state of Kuwait. Discussions were focused on recent developments in economic, financial and monetary policies in Europe and the Gulf region, as well as on oil prices and the Kuwaiti economy.The State of Kuwait and the Grand Duchy also signed an agreement to avoid double taxation and prevent tax evasion with respect to taxes on income and on capital. "