Intel works with GE on healthcare

General Electric and chip maker Intel have joined forces to develop hi-tech health care products that will allow patients to be treated at home.

The two firms plan to invest $250m in the project over the next five years.

Intel is best known as the world's largest chip maker but it has been working hard over the past few years to grow a new business in health care.

GE already has a sizable business selling health care products to hospitals and insurance companies.

Neither company has been immune to the effects of the global economic downturn but they were confident that this could become a multi billion dollar business.

At the launch event in New York, Jeff Immelt, GE's chief executive told the BBC he had high hopes for the project.

"Neither Intel nor GE does anything to create small businesses," Mr Immelt said.

"We do things to create big businesses."

Cutting costs

The Intel Health Guide, a special computer which allows doctors to remotely monitor, diagnose and consult with patients at home.

The technology could save hundreds of people from making repeated trips into hospital and could lower costs

"Something like 80% of the spending today in the health care system is on chronic care patients," Paul Otellini, Intel's chief executive said.

"This has the potential to take that down dramatically because a day at home costs a heck of a lot less than a day in the hospital."

As populations age in the US and in other countries, the two companies believe the market for using this kind of technology to manage chronic diseases could grow from $3bn a year to $7.7bn by 2012.

In the UK, the National Health Service in West Lothian is already piloting Intel's Personal Health System.

The deal comes as the Obama administration in the US has made improving the efficiency and lowering the cost of health care a major priority.

To achieve this, companies will have to play their part.

"I think business has an obligation when they have technology and new ideas and new market opportunities to step up," said Mr Otellini.

"Government also has an obligation - sometimes as the payer or the regulator - to be aware of what technology can do," he added.

Switzerland experiences deflation

Switzerland is experiencing deflation according to official figures.

Consumer prices in March were down 0.4% from a year ago, the Federal Statistics Office said, a 50-year low.

The country has been close to deflation all year, with inflation having fallen from a peak of 3.1% in July 2008. The rate was 0.2% in February.

The Swiss National Bank predicts that inflation will average -0.5% this year and remain close to zero throughout 2010 and 2011.

The deflation was blamed on energy, rent and transport costs all falling as a result of lower oil prices.

The year-on-year price fall for March was the biggest since December 1959, when consumer prices fell 0.6%.

"We forecast that CPI would fall into negative territory, but it is a bit surprising how sharp the fall was in March," said Alessandro Bee, an economist at Sarasin.

"It's predominantly due to the impact of lower oil prices."

The Swiss government is forecasting that the economy will shrink by 2.2% this year.

Oil slips below USD 52 after surging overnight

Oil slipped below USD 52 a barrel on Friday in Asia after surging overnight on investor optimism crude demand will soon rebound if the US recession has bottomed.

Benchmark crude for May delivery fell 72 cents to USD 51.92 a barrel by midday in Singapore in electronic trading on the New York Mercantile Exchange. The contract rose USD 4.25 on Thursday to settle at USD 52.64.



Oil prices have bolted from below USD 35 a barrel six weeks ago, riding a wave of improving investor sentiment that the worst of the US recession may be over.



Crude prices have mirrored a surge in stock markets, with the Dow Jones industrial average up more than 20 per cent during the last month.



"At this point, it's more momentum than fundamentals," said Gerard Rigby, energy analyst with Fuel First Consulting in Sydney. "People are expecting oil to jump over the next 12 to 24 months."



Investors brushed off evidence this week that US crude inventories are at a 16-year high.

Dollar rises above 100-yen mark

The US dollar rose briefly above 100 yen in Asian trading on Friday, the first time it had done so since early November 2008.

The news boosted shares in Japanese exporters, with the likes of Sony and Toyota Motor closing higher.

The dollar later fell to 99.50 yen amid nervousness ahead of the US jobless figures due later on Friday.

In the first three months of 2009, the dollar had its best quarterly performance against the yen since 2001.

"The yen selling was not sustainable before the US jobs data release," said a dealer at a Japanese brokerage.

"Opinion may be tilted towards the yen weakening in the longer term, but the market would first like to see this major event through."

The yen has been falling in value as a result of weak Japanese economic data and speculation that Japanese investors are planning to move funds overseas in the new financial year.

Global markets rise on G20 deal

Stock markets have rallied after world leaders reached a $1.1 trillion deal to tackle the global economic crisis at the G20 summit.

London's FTSE 100 index closed up 4.3%, Germany's Dax index gained 6.1% while France's Cac 40 rose 5.4%.

US markets also took heart as the global efforts unveiled added to optimism that the worst might be over for the world economy.

In New York, the Dow Jones rose 2.8%, or 216.5 points, to 7,978 points.

Stocks were also boosted as the US announced changes to accounting standards that would give companies more freedom in valuing assets and reporting losses.

The Financial Accounting Standards Board (FASB) approved the proposals, which could help boost bank balance sheets.

Earlier, shares in Asia closed higher. Japan's Nikkei 225 index rose 4.4% while Hong Kong's Hang Seng gained 7%.

'Buying mood'

Recent upbeat economic data on the US housing market and on the manufacturing sector has cheered investors.

"Everyone is in a buying mood," said Eric Ross, director of research at brokerage Canaccord Adams.

"Everyone is feeling good."

Hopes that the global downturn might be easing also pushed oil prices up almost 10% to above $50 a barrel.

US light, sweet crude was up $4.25 to $52.64 a barrel, while London Brent crude rose $4.31 to $52.75 a barrel.

"There seems to be a G20 factor," said Tony Machacek, an oil broker at Bache Commodities in London.

"The stock markets are strong and the dollar is weaker. That is also helping the market."