Philippine Inflation Rate Holds Near Eight-Month High

Philippine inflation held near an eight-month high in January as oil and food costs rose, supporting the central bank’s decision to start unwinding stimulus measures.

Consumer prices increased 4.3 percent from a year earlier, after a 4.4 percent gain in December, the National Statistics Office said in Manila today. That compares with the median forecast for a 4.9 percent increase in a Bloomberg News survey of 12 economists.

The central bank remains “watchful of price signals,” Deputy Governor Diwa Guinigundo said today. “Our monetary policy stance was also validated to be supportive of price stability while accommodating economic growth.”

Bangko Sentral ng Pilipinas last week raised the rediscounting rate, one of the rates it charges lenders for borrowing money from the central bank, by half a percentage point to 4 percent. The Philippines imports almost all its oil and the price of the commodity has risen more than 70 percent in the past 12 months.

Benchmark three-year bond yields climbed, ending three days of declines. The peso slid 0.7 percent against the dollar.

“People think it’s just a one-time blip,” Yvette Marquez, who helps manage the equivalent of $9.8 billion in assets at BPI Asset Management in Manila, said of the moderation in consumer- price gains. “We still expect inflation to rise, although it will be a tempered rise.”

Benchmark Rate

The central bank left its benchmark interest rate unchanged at 4 percent for a fifth straight meeting on Jan. 28, the lowest level since central bank data started in 1990. Policy makers raised the inflation forecast for this year to 4.7 percent from 4 percent.

Philippine economic growth accelerated to 1.8 percent last quarter, the fastest pace in a year. Expansion slowed to a decade-low 0.4 percent in the third quarter.

Food, beverage and tobacco costs rose 4.3 percent last month. Fuel, electricity and water prices climbed 9.2 percent.

“Current monetary settings are appropriate,” Bangko Sentral ng Pilipinas Deputy Governor Armando Suratos said in a mobile-phone text message after the inflation report. The central bank will watch for “any possible build-up in inflationary pressures emanating from demand and supply forces and preemptively revisit and calibrate policy settings when warranted,” he said.

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HMS parent buys ER tech company Medhost

The parent company of Healthcare Management Systems Inc. has purchased Medhost, a Texas company that builds information systems for emergency rooms.

Nashville-based HealthTech Holdings Inc. said it expects the purchase to push its total revenue past $100 million in 2010. Terms of the deal were not disclosed.

HMS, also based in Nashville, develops sells and provides support for integrated clinical and financial hospital information systems and services. Medhost provides similar support for emergency room personnel, using a simplified interface that’s designed to reduce paperwork time.

According to a news release, HMS and Medhost will work together to create an integrated system for the 650 community hospitals that use HMS software.

“This is a win-win transaction,” HMS CEO Tom Stephenson said in a news release. “We will work together to gain the benefits of collaboration and capitalize on each other’s strengths.”

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Europe Inflation Accelerates to Fastest in 11 Months

European inflation accelerated in January to the fastest in almost a year after cold weather pushed oil prices to a 15-month high.

Consumer prices in the 16-nation euro region rose 1 percent from a year earlier after increasing 0.9 percent in December, the European Union statistics office in Luxembourg said today. That’s the highest since February 2009. The region’s unemployment rate rose to 10 percent in December from a revised 9.9 percent in the previous month, it said in a separate report.

Crude-oil prices have surged 76 percent over the past year, pushing up inflation even as companies cut costs and eliminate jobs to shore up earnings. While the euro-region economy emerged from a recession in the third quarter, the European Central Bank earlier this month kept borrowing costs at a record low and forecast an “uneven” recovery this year.

“We see little prospect of a strong, sustained rise in euro-area inflation,” said Colin Ellis, an economist at Daiwa Securities in London. That “gives the ECB scope to leave monetary policy firmly in accommodative mode.”

An Arctic cold spell gripped the Northern Hemisphere earlier this month, sending energy commodity prices soaring. Northwest Europe may be colder than average in the next two months, forecaster WSI Corp. said on Jan. 20.

Job Cuts

The euro was little changed against the dollar, at $1.3963 as of 10:08 a.m. in London from $1.3971 yesterday.

Economists had forecast that inflation would accelerate to 1.2 percent in January, according to the median of 41 forecasts in a Bloomberg News survey. The jobless rate is at the highest since August 1998. The statistics office previously reported November unemployment at 10 percent.

Rising unemployment may restrain domestic demand and keep price pressures in check. The euro-area’s core inflation rate, which excludes volatile energy and food costs, was at 1.1 percent in December. The statistics office will publish the January number when it releases detailed data on Feb. 26.

“Underlying inflationary pressures still appear to be muted,” said Howard Archer, chief European economist at IHS Global Insight in London. “Businesses may well remain cautious in their employment and investment plans for some time.”

Growth Forecast

Remy Cointreau SA, France’s second-largest liquor maker based in Paris, said on Jan. 21 that third-quarter revenue dropped on declining demand. Airbus SAS, a unit of European Aeronautic, Defence & Space Co., said earlier this month that it plans to cut about 1,000 temporary jobs to help cut costs.

The ECB said last month that the euro-region economy will probably grow around 0.8 percent this year and 1.2 percent in 2011. Inflation may average about 1.3 percent in 2010 and around 1.4 percent in 2011. The central bank aims to keep annual gains in consumer prices just below 2 percent.

A gauge of consumers’ price expectations over the next 12 months jumped to minus 2 in January from minus 6 in December, the highest since April, the European Commission said yesterday.

“The economy took a really steep fall, it’s been stabilizing,” ECB council member Axel Weber said on Jan. 27. “We don’t expect” inflation “to significantly surpass 2 percent. Rates are appropriate at this point.”

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Enterprise Financial raises $15 million

Enterprise Financial Services Corp., parent of of Enterprise Bank & Trust in Clayton, Mo., said Monday it met its goal and raised $15 million from 40 investors in a private offering.

On a pro-forma basis, the additional common equity increases the company’s total risk-based capital ratio to 13.96 percent.

The offering, which was available to accredited investors meeting certain net worth and income requirements, started Dec. 11 and wrapped up Friday.

“In roughly six weeks, we reached our maximum of $15 million from approximately 40 investors, with more demand than we could accommodate,” President and Chief Executive Peter Benoist said in a statement. “The confidence in Enterprise demonstrated by outside investors is shared by company insiders as well, who accounted for approximately 10 percent of the capital raised.”

The purchase price was $8.09 a share for the company’s directors and officers and $7.71 for other investors. The minimum investment was $150,000; the maximum was $4 million payday loans in one hour.

Enterprise said it would use the proceeds for general corporate needs, which may include working capital and “expanding through acquisitions.”

Enterprise, which received $35 million in capital in December 2008 from the federal Troubled Asset Relief Program, is interested in acquiring banks “that may have failed due to loan problems but have good core deposits,” Benoist recently told the Business Journal. Startup banks, for example, “that have not developed good core deposits would not be of interest,” he said.

In December, Enterprise acquired a bank that fit its desired profile, Valley Capital Bank in Mesa, Ariz., which had been closed by regulators. It paid the Federal Deposit Insurance Corp. a 2 percent premium to assume Valley Capital’s deposits, which totaled $41.3 million.

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Delayed harvest worries wineries

As Missouri and Illinois winemakers gear up for the spring, when they bottle last year’s grapes, some will be crossing their fingers, hoping that last year’s wet and cool weather translates to a decent vintage.

Some wineries are weeks behind the blending and fermentation processes because of delayed harvests and rainy weather last year. Other wineries are working with fewer grapes because of lower yields, while questions remain about the impact the tricky weather had on the quality of the grapes.

"Normally we know about now, but this year it’ll be about Groundhog Day or Valentine’s Day before we know if we’ve had a good year," said Chuck Dressel, owner of Mount Pleasant Winery in Augusta. "We’re waiting with bated breath."

For Missouri, a bumper crop in 2008 came on the heels of a difficult 2007, when vines were damaged by an April frost that damaged buds. But 2009 appears to be a mixed bag — a year that challenged experienced grape growers and frustrated those new to the industry.

"It was a vintage that literally separated the men from the boys," said Jon Held, general manager of Stone Hill Winery, headquartered in Hermann. "It was very challenging if you didn’t understand the technology, and it’s a very challenging climate to begin with. Some of the guys who lack the experience had a really hard time. … Some folks had a disastrous year."

The Missouri wine industry has grown steadily since its rebirth in the 1960s, which revived a wine business curtailed by Prohibition. Along with steadily increasing acreage and more wineries in recent years has come more expertise and advanced technologies that make growing seasons like 2009 easier to manage.

"It was cool and wet, and they had to monitor the vineyards very carefully. They had to spray a lot," said Jim Anderson, executive director of the Missouri Wine and Grape Board. "The better growers did a really great job. You had to be a good farmer to keep an eye on everything."

In Illinois, the weather throughout 2009 led to one of the state’s worst years for the wine industry, said Bill Shoemaker, senior research specialist for food crop agriculture with the University of Illinois. Still, he struck a more optimistic note about the this year’s grape crop in Illinois.

"I think the odds are that this year will be a whole lot better than 2009," Shoemaker said.

Numbers for the final yield aren’t yet available. Anderson said he expects that Missouri’s grape growers pulled in about 4,200 tons of fruit, which is a typical yield in recent years, despite the weather and soggy harvest. He credits what appears to be solid yield to more acreage being put in production than in previous years.

Shoemaker also had no figures for the yield in Illinois. He said growers throughout the state raise grapes that are hybrids, genetically designed to withstand cold weather. But those grapes do not fare as well in overly wet conditions like last year’s, he said.

Missouri and Illinois growers raise about 1,500 acres of wine-producing grapes per year in each state fast cash. That figure has doubled in the last 10 years, thanks to the growing popularity of locally produced wines.

Missouri now has more than 90 wineries, up from just over 30 a decade ago. Illinois has more than 80 wineries, and it had fewer than 30 in 2000.

The main issue in 2009 in both states was wet weather, which delayed the grapes’ ripening. The harvest, which typically begins in September and runs through October, was stalled by rain.

Steve Hicks is vineyard manager for the seven acres of grapes at Black Diamond Vineyards near Nashville, Ill., about 50 miles east of St. Louis. He said 2009 was the worst year for the vineyard since it opened in 2005. "It’s farming, so you never know from one season to the next, but the vines are pretty resilient," Hicks said.

The vineyards produce grapes for dry white and semi-sweet red wines. But the winery still did well last year, Hicks said, because it also produces wines made from imported grape juice.

Aside from slowing the ripening of the fruit, the cool and wet weather brought threats of disease.

"The biggest problem was keeping the diseases down," said Mark Baehmann, winemaker at Chaumette Vineyards and Winery in Ste. Genevieve. "When you don’t have the heat to dry up the moisture, you have more pressure from disease."

Baehmann explained that Chaumette’s vineyard workers did a lot of thinning, deliberately keeping yields low, but allowing more light and heat to reach the fruit. "We had low tonnage this year," he said. "I needed every grape I could get."

But with the region’s variable climate, some vineyards actually experienced some of their best years ever. "It was a great year for us all around," said Peter Hofherr, of St. James Winery near Rolla, the state’s largest winery. "We had more heat than everybody else; we’re in a small band. Our reds ripened earlier than everybody else by a couple of weeks."

At Augusta Winery, growers allowed the grapes to stay on the vine a little longer, allowing them more time to ripen despite the risk of cold, said Tony Kooyumijian, Augusta’s owner.

"I would say it was (our best year) since 2002. A lot of it depends on how much experience you have growing grapes in Missouri. You have to be patient and be able to tolerate a little risk."

The cool harvest conditions also had an upside.

"For the first time in about five years, we were able to grow ice wine," said Dressel, of Mount Pleasant, explaining that ice wine is made from grapes that have been allowed to freeze on the vine. "With the cool summer and the grapes not ripening fast enough, we knew the fruit would hang on the vine well into December. It hasn’t been cold enough to do that. … That’s our shining star this year."

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NMDC to Help India Raise Record $5.5 Billion From Share Sales

India will sell as much as 250 billion rupees ($5.5 billion) of shares in state-run companies this fiscal year, more than half the total raised since privatization efforts began in 1991, the official in charge of the sales said.

NMDC, the nation’s largest iron ore producer, and NTPC Ltd., the biggest electricity provider, are among companies taking advantage of a 94 percent rally in the benchmark stock index in the past year. The government is planning to reduce its stakes in as many as 68 companies to improve returns, said Sunil Mitra, secretary of the Department of Disinvestment.

“There’s enough liquidity in the market and we feel the release of good quality shares of public-sector companies will help stabilize the markets,” Mitra said in an interview in New Delhi yesterday. “The government’s decision to sell small stakes will help unlock shareholder value.”

The sales are needed to help plug a budget deficit that may climb to the equivalent of 6.8 percent of gross domestic product in the year ending March 31, a 16-year high. “There is a pressure on the deficit side,” Mitra said.

Net purchases of Indian stocks by overseas funds totaled $17.7 billion last year, matching the record set in 2007, as Asia’s third-biggest economy weathered the global recession. JPMorgan Chase & Co. and India Capital Management Ltd. predict the benchmark Sensitive Index will rise at least 15 percent in 2010, fueled by consumer spending and prospects gross domestic product will increase 8 percent.

Record Sale

NMDC may sell shares between March 9 and March 12, raising about 174 billion rupees based on yesterday’s closing price, in what would be India’s biggest government offering. The Hyderabad-based company soared 24 percent in the past three days on speculation the sale will attract excess demand.

Mitra said he is drafting plans for more share sales in the year beginning April 1, including probable offerings by Steel Authority of India Ltd., the nation’s second-biggest steelmaker, Coal India Ltd. and telephone operator Bharat Sanchar Nigam Ltd.

“We have 60 unlisted companies and 8 listed ones,” under consideration, Mitra said without giving a timeline. The government raised 396 billion rupees from stake sales since 1991, according to the department’s Web site.

The Bombay Stock Exchange’s BSE-PSU Index of 48 state-owned stocks climbed 81 percent in 2009 after Prime Minister Manmohan Singh Congress party won a second five-year term in May without the support of communist parties, which had stalled previous initiatives to sell state-owned assets.

NMDC may submit share-sale documents to the market regulator in the last week of January, Mitra said. The government is selling an 8.38 percent stake.

Singh in November changed a rule allowing sale proceeds to be used to fund social programs and infrastructure, helping trim the deficit. Previously the government had to invest the money in bonds and stocks.

Singh’s cabinet on Nov. 5 approved a plan requiring all profitable state-run companies in which the government holds a more than 90 percent stake, to ensure that 10 percent of the shares are in public hands.

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Italy’s Redundancy Fund Hides Real Jobless Rate: Chart of Day

Italy’s state-backed fund for layoffs is disguising the true rate of joblessness, masking the severity of the worst recession in 60 years by allowing companies to retain workers without paying them.

The CHART OF THE DAY shows Italy’s real unemployment rate in red, calculated by adding laborers paid by the fund known as cassa integrazione, or CIG, to the official rate, in green. The euro-area average is in blue. The CIG pays laid off employees about 80 percent of their salaries for as long as two years.

“It’s an Italian vice that has taped over the holes, hiding the real situation,” Tito Boeri, professor of economics at Bocconi University in Milan, said in a telephone interview. “During the crisis the government has extended the use of what should only be a stopgap measure.”

The official unemployment rate rose in November to 8.3 percent, the highest level in more than five years. The average for the 16 countries sharing the euro is 10 percent guaranteed personal loan approval. Italy’s real unemployment rate is more than 10.7 percent, according to Bloomberg calculations that include numbers provided by INPS, the Rome-based agency that handles the welfare payments.

Italian companies’ use of the CIG fund quadrupled to almost 1.5 billion euros ($2.2 billion) in 2009 from 365 million euros in 2008, according to Bloomberg projections based on the cost of the fund in 2008 and the number of hours covered by CIG subsidies approved in 2009. The official cost of the CIG in 2009 will be published in the annual report of INPS later this year.

Under Italian law, businesses suffering from a downturn can lay off permanent employees for as long as two years and take them back when conditions improve. CIG aid can be extended to five years if the government decides that circumstances are “exceptional.”

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China Raises Banks’ Reserve Ratio to Cool Economy

China raised the proportion of deposits that banks must set aside as reserves to cool the world’s fastest-growing major economy as a credit boom threatens to stoke inflation and create asset bubbles.

Reserve requirements will increase by 50 basis points from Jan. 18, the central bank said on its Web site this evening. The existing levels are 15.5 percent for big banks and 13.5 percent for smaller ones.

Chinese lenders added a record 9.21 trillion yuan ($1.3 trillion) of loans in the first 11 months of 2009, driving an economic rebound after the global financial crisis slashed exports. Credit growth surged last week, local media reported yesterday, and the cabinet said Jan. 10 that the nation is on guard against inflows of speculative capital that may stoke price gains.

Policy makers “are following through on their pledge to guide credit in order to pre-empt rising inflation and avoid asset-price bubbles,” said Jing Ulrich, chairwoman of China equities and commodities at JPMorgan Chase & Co. in Hong Kong.

The increase, the first since June 2008, excludes “small financial institutions such as rural cooperatives” to aid rural production, the central bank said. It didn’t specifically refer to ratio levels for smaller banks.

Interest-Rate Speculation

China’s central bank also sold bills at a higher yield for the second time in a week today, fueling speculation that policy makers will raise the benchmark interest rate in the first half of the year. BNP Paribas SA brought forward its forecast for higher interest rates to the second quarter from the third.

Banks lent about 100 billion yuan ($14.6 billion) each day last week, the official China Securities Journal reported. That compares with 294.8 billion yuan for all of November. December data is yet to be released.

While Chinese lending is typically biggest at the start of each year, the central bank said last week that it is aiming for “moderate” credit growth in 2010 after a record 9.21 trillion yuan of loans in the first 11 months of 2009.

Economists are ratcheting up 2010 inflation forecasts for China. Citic Securities Co., the nation’s biggest listed brokerage, raised its estimate to 3.2 percent from 2.6 percent in a report dated yesterday. Bank of America Merrill Lynch last week increased its forecast to 3.1 percent from 2.5 percent.

Premier Wen Jiabao pledged Dec. 27 to curb excessive property-price gains in some parts of China after the biggest nationwide increase in 16 months in November.

“Monetary policy is being gradually tightened as China faces very significant inflationary pressure and credit growth that is too fast,” Isaac Meng, senior economist at BNP Paribas in Beijing, said before the reserve-requirement increase. He said the central bank may initially raise interest rates by 27 basis points.

China’s benchmark one-year lending rate is at a five-year low of 5.31 percent.

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Cancer patient helps design hospitals

Diana Spellman and her husband, Stan Spellman, run Spellman Brady & Co., which provides interior planning and design, furniture purchasing, artwork planning and brand identity for health care, higher education and senior living organizations.

The company, based in Clayton, has been in business since 1991. It has planned more than 25 million square feet of space and managed purchases of more than $470 million in furniture, soft goods and artwork.

As a cancer survivor, Diana says the disease helped teach her ways to improve her work.

How do you and Stan, your husband of 25 years, divide job duties?

Stan is the vice president. I’m the president. He handles design and technical solutions while I’m more the voice — pick up the phone, find the clients. I’m a people person. In business, I’m also very much of a strategist.

What is the primary strategy of your business model?

We pursue the concept of bridging the gap between the owners — our clients — and the architects and contractors.

What you see, touch and feel in an environment are furniture and the artwork. Construction and architecture are extremely important, but that’s still the shell to hold everything else. Understanding what architects are doing with design and what owners are doing to make the most of their budgets leads to creation of a project that’s the best it can be and one that comes in under budget.

How did you incorporate your fight against cancer into the way you approach your work?

I grew up in Mason City, Iowa, where my dad was a doctor. He would drag my brother and I to the emergency room in the ’60s when he had to meet someone at the ER cash advance payday loans. We would sit in wheelchairs in the hallway. All the doctors and nurses smoked! I remember walking through those facilities where everything was tile. It echoed, and it smelled like alcohol.

When I was 50 I discovered I had breast cancer. My prognosis now is good. I feel passionate about creating a culture that feels positive to the doctors, nurses, administrators and, of course, the patients and their families.

What specific Spellman Brady project used this approach?

A good example is the Illinois Cancer Center in Peoria. The project was so fabulous to work on in 2002 and 2003. The center is part of Oncology Hematology Associates of Central Illinois, one of the largest private oncology practices in the country.

The center is at the edge of a prairie. A design challenge was to bring the views and serene setting into the building. Colors, materials, artwork, lighting and textures help produce a warm, calming environment. Seemingly small things can be important. Instead of placing chemotherapy recliners in small treatment rooms, we faced them toward windows with beautiful prairie views.

Did your cancer treatment include any don’t-do-it-like-this moments?

Absolutely. Having gone through cancer treatments made me more sensitive to the patient experience in that transitional time. Some things were so inappropriate. Once during a needle biopsy the background music being played was the theme from Romeo and Juliet. Another time the printer used for medical billing was in the patients’ hearing range. Those situations aren’t good for patients. There’s nowhere to feel fully embraced.

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Google poised to take wraps off new mobile phone

SAN FRANCISCO–Google Inc. is again trying to shake up the mobile market.

In holding an event Tuesday in which it was expected to outline its vision for how a mobile phone should be made and sold, the Internet search leader will likely raise the stakes in its bid to gain more control over how people surf the Web while they’re on the go.

The catalyst in Google’s latest attempt to redefine the mobile market apparently will be the Nexus One, the first smart phone designed by the company’s own engineers.

Google has said little about the phone except to confirm that its workers received the handsets three weeks ago for a final round of internal testing. Google is expected to provide the first concrete details about the phone, along with the company’s vision for how such devices should be made and sold, during a news conference Tuesday at Google’s headquarters in Mountain View.

In its invitation to the event, Google said the wireless market has only seen "the beginning of what’s possible" with the free Android operating system that it introduced for mobile phones in late 2007.

Android was designed to make it easier to interact on a mobile phone with Web sites and services, including Google’s, while providing an egalitarian platform to run applications developed by outside programmers.

The applications don’t have to go through an extensive review before they can be distributed to Android-powered devices, a contrast from the control that Apple Inc. holds on its hot-selling iPhone.

Until now, Google has been content to let other companies design the devices relying on Android. And those devices thus far have largely been distributed like most other mobile phones, tethered to major wireless carriers that typically require buyers to lock into two-year contracts in return for discounts on the handsets.

But Google now appears to be ready to push its operating system in a new direction while trying to give consumers more flexibility to connect a mobile phone with the wireless carrier of their choice.

Google intends to stamp its own brand on the Nexus One and sell it directly to consumers over the Web, leaving it up to the buyers to pick their own carriers, according to reports published in technology blogs and major newspapers. That could open new possibilities while igniting new tensions in the mobile phone market.

Just how much Nexus One shakes things up will likely hinge on the phone’s price.

Most smart phones designed for Web access sell for $50 to $200, thanks to subsidies provided by wireless carriers in return for commitments to service plans that cost $800 to $1,000 a year. Without the financial aid, the phones would sell for $400 to $600 – a range that most consumers have been unwilling to pay, especially in a shaky economy.

T-Mobile has agreed to provide a subsidy for a Nexus One that works on its wireless network, according to published reports cheap business cards. Such an agreement wouldn’t represent a substantial change from the status quo.

Yet Google appears to be betting that the Nexus One will make a big enough splash to persuade other major U.S. wireless carriers – AT&T Inc., Verizon Wireless and Sprint Nextel Corp. – to subsidize the device, too, said technology analyst Rob Enderle.

"If enough customers want this phone, the carriers will have no choice but to follow," he predicted.

That would also break the traditional practice of giving carriers the right to sell specific models exclusively for a certain period.

Google conceivably could offer a sharp discount on the Nexus One without carriers’ help, hoping to recoup some of the costs by selling more ads on the devices. But the mobile advertising market is unlikely to grow quickly enough to offset the costs of the discounts for several years, so pursuing that strategy would likely crimp Google’s profits – something that could drive down the company’s stock price.

Another option is for Google to simply sell the phone at the full price, banking that it’ll be attractive enough for buyers looking for the freedom to choose their own carrier.

A smart phone that empowers consumers to choose from a variety of carriers could post a threat to the iPhone, which is tied exclusively to AT&T in the United States. That tie-in has spurred complaints from some iPhone users who say AT&T’s network bogs down amid heavy Web traffic, particularly in big cities such as New York and San Francisco.

With the competition between the two companies heating up, Google Chief Executive Eric Schmidt resigned from Apple’s board five months ago.

Selling its own phone also could foster more resentment toward Google among the business partners that have been backing Android as a viable alternative to the mobile operating systems made by Apple, BlackBerry manufacturer Research in Motion Ltd. and Microsoft Corp.

Verizon, for instance, has raised consumer awareness about Android during the past two months by bankrolling a marketing blitz for the Droid phone made by Motorola Inc.

In an effort to keep the peace, Google probably will try to position the Nexus One as a way to encourage even more innovation with its Android system, said Forrester Research analyst Charles Golvin.

"They might tell everyone in the Android ecosystem, ‘We applaud you for what you have done so far, we just want to take things even further and think we can help light the way,’" Golvin said.

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