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THE head of the United Nations nuclear watchdog will meet the North Korean government next month to discuss the shutdown of the secretive communist state’s nuclear programme and bring the country back under UN supervision.

Mohamed ElBaradei, the director-general of the International Atomic Energy Agency, (IAEA) said he had received an invitation from Pyongyang yesterday, after a deal last week to shut down its Yongbyon nuclear site and allow UN inspectors into the country.

“The first [issue] of course is how to develop a plan to freeze the Yongbyon facilities, and more importantly to make sure that they come back as a fully-fledged member of the agency,” Mr ElBaradei said in Vienna.

“I very much welcome this opportunity,” Mr ElBaradei said in a joint briefing with Ban Ki-moon, the UN secretary general.

A spokeswoman for the IAEA added that Mr ElBaradei planned to visit after a board meeting in March.

The apparent progress of the plan to dismantle Pyongyang’s nuclear ambitions came just a day after Mr ElBaradei said in a report to the UN Security Council that Iran was still defying UN demands to suspend its nuclear enrichment programme.

Mr Ban said that Iran should take a cue from North Korea and return to dialogue with the international community.

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LONDON (AFX) - Here are the top stories on AFX News

US economy grows slower than expected in 4Q

WASHINGTON (AP) - The economy grew at a sluggish 2.2 percent pace in the final quarter of last year, much slower than initially estimated, the government reported Wednesday in the sort of unusually large revision that has happened only seven times in the last 30 years.

The latest reading on the gross domestic product released by by the Commerce Department came a day after stocks on Wall Street and around the globe took a nosedive and showed the economy in a considerably weaker state than the government first estimated. It had initially reported the expansion in the last three months of 2006 to be at a 3.5 percent pace. The principal reason for the new, significantly lower estimate: Businesses tightened their belts amid fallout from the troubled housing and automative sectors.

Bundesbank chief signals further ECB rate rises

FRANKFURT (AFX) - Bundesbank president Axel Weber signalled that the European Central Bank was

set to further raise its key interest rates, which are already at a five-year high point.

EADS unit Airbus confirms 10,000 job cuts, output shifts; seeks partners

PARIS (AFX) - European Aeronautic Defence and Space Co (EADS) unit Airbus confirmed it will cut 10,000 jobs, shift aircraft production lines and seek partners for some facilities that it may sell in the long run.

Announcing details of a long awaited revamp, Airbus said it will have a 680 mln eur provision in the first quarter in connection with the job cuts. A senior official said this means there will be no provision in the full year 2006 results.

Merck sees Q1 EPS at 0.58-0.64 usd, raises FY estimate to 2.40-2.55 usd

LONDON (AFX) - Merck & Co., Inc. said it anticipates reported first-quarter EPS of 0.58-0.64 usd. Excluding restructuring charges related to site closures and position eliminations, it sees first-quarter EPS at 0.63-0.67 usd.

The guidance does not reflect the establishment of reserves for potential liability relating to litigation over the controversial Vioxx painkiller.

Munich Re posts record FY profit on favourable climatic environment

MUNICH (AFX) - Muenchener Rueckversicherungs AG said full year net profit rose to a record 3.536 bln eur from 2.751 bln a year earlier, exceeding the 3.400 bln forecast by analysts, as the insurance industry was largely spared major losses from natural catastrophes.

The company said it will propose a dividend of 4.50 eur per share for 2006, up from 3.10 in 2005.

Bayer to cut 950 jobs at Bayer Schering Pharma’s Berlin ops

FRANKFURT (AFX) - Bayer AG said it will cut 950 jobs at its Bayer Schering Pharma’s Berlin operations as part of its plan to achieve the previously announced synergy potential of 700 mln eur per year from 2009.

Bayer said that out of the total, 350 staff will take early retirement or other similar packages.

Agfa-Gevaert FY net profit 15.0 mln eur vs net loss 19.3 mln eur

BRUSSELS (AFX) - Belgian imaging technology company Agfa-Gevaert NV posted full-year net profit of 15.0 mln eur, well above analysts’ expectations who had predicted a net loss of 47.6-99.0 mln eur, against a loss of 19.3 mln eur in 2005.

Sales for the full year came in at 3.401 bln eur against 3.308 bln eur in 2005, also outstripping analysts’ expectations at 3.249-3.391 bln eur.

Australia’s Centro acquires US property trust New Plan for 3.4 bln usd

SYDNEY (XFN-ASIA) - Centro Properties Group and Centro Retail Trust have agreed to buy US-listed real estate investment trust New Plan Excel Realty Trust Inc for about 3.4 bln usd, Centro said in a statement.

Centro said it will pay cash of 33.15 usd a share cash for New Plan, which specializes in convenience retail property. Its portfolio comprises 467 properties, including 453 shopping centers in 38 US states and 14 other real estate assets.

Euro zone Jan HICP up 1.8 pct yr-on-yr vs 1.9 provisional

BRUSSELS (AFX) - The euro zone’s harmonised index of consumer prices rose a final 1.8 pct year-on-year in January, revised down from a provisional estimate of a rise of 1.9 pct, EU statistics office Eurostat said.

The HICP rose 1.9 pct year-on-year in December.

UK Feb consumer confidence index down 1 point to -8 - GfK/NOP

LONDON (AFX) - Consumer confidence fell slightly in February as Britons became more pessimistic about the UK’s general economic situation, a leading pollster found today.

In its monthly survey, GfK/NOP said its main headline consumer confidence index fell one point to -8 from -7 in January, whereas analysts polled by AFX News were not expecting any change in the index.

HBOS FY pretax profits up 19 pct, ahead of forecasts

LONDON (AFX) - UK bank HBOS PLC unveiled a better-than-expected 19 pct increase in full-year profit, helped by strong sales of savings and investment products, and a robust performance from its international division.

HBOS, the UK’s fourth-biggest bank, said pretax profit for the year to Dec 31 2006 came in at 5.706 bln stg, up from 4.8 bln stg last year. Analysts had expected profit fo 5.430 bln stg, according to a consensus forecast supplied by the company.

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Have you thanked your competitors lately? At first it might sound counterintuitive (or just plain nuts) but when you stop to think about it, your competition can actually help you sell more. Hear me out. Without competitors, you would miss out on the four big benefits every salesperson should take advantage of.

1. Competitors help you define who you are to your customers. Consider this: Where would Pepsi (http://www.businessweek.com/ticker/) be without Coke (http://www.businessweek.com/ticker/)? If Pepsi was the only household name cola available, it would have to tell its customers it sold a sweet, brown, fizzy beverage. Instead, it markets its product as a cooler, hipper alternative to Coke.

As a sales speaker, I’ve also benefited from having one major competitor. We share roughly the same sales philosophy. The big differences between us are that he is better known, a lot older, and uses coarser language. So when potential clients ask me for a point of reference when considering me for a speaking gig, I say “I’m the kinder, gentler, female version of Mr. X who doesn’t curse.” That usually produces a smile of understanding—and often, a deal.

2. Rivalry can bring out your best. For example, when Japanese automakers began to make serious inroads into the American marketplace, U.S. manufacturers responded by improving the quality of their cars—though, unfortunately for them, they’re still struggling at it (see BusinessWeek.com, 1/25/07, ). Obviously, when your competitors improve, you had better improve too—or risk getting fired by your customers. Even though it’s painful and expensive, over time you can provide better products and services.

3. Competition adds energy to your selling efforts. A good example of this was the battle between Nike (http://www.businessweek.com/ticker/) and Reebok (http://www.businessweek.com/ticker/). At one time, Nike’s mission statement was “crush Reebok.” Those were words the sales forces of both shoe manufacturers could rally around. (Never mind that Nike won.) Your customers also get to join in on the fun of choosing sides and participating in the duel with their dollars.

4. Competitors educate your customers through their advertising and marketing. While their campaigns push customers on their specific new products and services, they’re simultaneously marketing potentials on new features available industrywide. This means your competitor is doing some pre-selling for you, legitimizing the latest widget. Instead of glaring at your competitor’s large, glossy ads next time you see them, understand that they could be paving the way to a sale for you.

My sales-speaking competitor spends a lot of money selling companies, groups, and individuals on the importance of investing in their sales knowledge, whether it’s through a book, CD, training series, consulting agreement, or speaking event. I like to think of him as a big cruise ship crossing the ocean. In this scenario, I’m a smaller boat that tucks in behind him, not expending as much energy as he does, but quickly moving forward. I reap some of the benefit of his efforts, as potential customers become more knowledgeable about the benefits of spending money on becoming better at selling.

However, before you order a floral bouquet for your competitors, make sure you’re in your best fighting form. Here are three suggestions to strengthen your competitive position.

1. Information is power. Learn everything there is to know about your primary competitors. Make a scorecard of the key points you want to evaluate, and measure them on a regular basis. If they have a store, go there and shop, and pay attention to everything from the cleanliness of the parking lot to the type of customers to the storeЙs layout and signage.

Whether or not your competitors operate out of physical stores, learn what types of products or services they’re featuring and which products they’re clearing out. Make a purchase, arrange a layaway or financing, make a return, an exchange, and a complaint. Write for information, study their financial filings, their brochures, their ads, and call them on the phone or e-mail them.

2. Track their trends. If you fill out a scorecard on your major competitors on a monthly basis, after only a couple of months you will begin to see trends. What are they doing more of? Less of? What is changing for them and staying the same for you—or vice versa?

3. Once you understand your competitors, you can start to see how they think and act. Strategize how you can excel where they’re weak and match them where they’re strong. Once you’ve done this work, don’t keep it a secret. Let your customers and potential buyers know how you outshine your competitors.

Years ago, my boss taught me not to call them “competitors” but rather “valued associates.” Regardless of what you call them, competitors can spur you on to proclaim victory. Happy selling!

Editor’s note: As a special feature for Feburary, TheStreet.com offers a four-part series on 401(k) plans designed to help you maximize your retirement savings. Today is Part 3. Part 1 was on maximizing your contributions, and Part 2 was on asset allocation.

Need a new car? Want that great condo? Thinking about tapping your retirement savings? Think again.

While it might be tempting — particularly when you leave a job — to dip into your 401(k) plan, your future financial security relies not just on saving money in your employer-sponsored retirement account but also on leaving it there.

“These plans are designed to be retirement accounts, and the government is giving you tax benefits to use them as retirement accounts,” says Stuart Ritter, a financial planner at T. Rowe Price. “So if you break that contract with the government and use them for something else, there will be penalties.”

Yet an unsettling number of people do just that. According to a Hewitt Associates study of 2004 data, 45% of U.S. workers choose to cash out of their 401(k) plans when they leave their companies.

Younger workers were by far the worst offenders. Sixty-six percent of those ages 20-29 elected to cash out when they changed jobs. Employees who were older and more tenured were more likely to preserve their retirement wealth, either keeping the assets in their former employers’ plans or rolling them over to qualified IRAs or other retirement accounts. Still, more than 42% of workers ages 40-49 elected to cash out of their 401(k) plans upon leaving their jobs.

Paying income taxes and a 10% penalty on the funds you withdraw aren’t the only consequences. You’re also forfeiting the returns you would have earned on the money had you left it in a retirement account. Withdrawing even a relatively modest amount can have a big impact on your nest egg. For example, if a 40-year-old employee with a $10,000 balance earned a 7% annual return, the money would grow to more than $50,000 by the time she retired at age 65, according to Hewitt.

Ritter says you have options if you leave a firm: “If your balance is more than $5,000, you can simply leave the account with your former firm. The second option is to roll it into an IRA, and the other option is to roll it into a new employer’s 401(k) plan.”

If your old company makes the distribution check out to you, it is required to withhold 20% for taxes. To avoid the 20% withholding, you must arrange for a “direct” rollover. The distribution check from the retirement plan at your old company must be made out in the name of the trustee or custodian of the IRA account that you want to receive the rolled-over funds.

“Obviously, it depends on the individual, but the IRA option gives you a little more flexibility,” says Ritter. “If you had to pick one that applies to the vast majority of people, rolling it to an IRA is probably the right choice.”

If financial hardships make it necessary to tap your 401(k) savings, consider borrowing money from the plan. “If you withdraw, you are paying the taxes immediately and paying the penalty. If you’re taking a loan, it’s not considered a taxable distribution and no penalties are involved,” explains Ritter.

But Ritter says you should use this option only in a dire situation.

Typically, you’re allowed to borrow up to half your vested account balance but not more than $50,000. You have five years to pay back the loan and can take even longer if the money is going for the down payment on a primary residence. You pay interest as well as the principal on the loan to yourself, usually through an automatic payroll deduction. But the interest you pay goes into your retirement account instead of a bank.

Keep in mind that if you should lose your job or change jobs, the loan becomes due immediately. “If you can’t pay it back, it’s treated as an early withdrawal with corresponding penalties,” Ritter says. Watch for one more step to fixing your 401(k) on Friday: Consider a Roth 401(k).

Updated from 9:45 a.m. EST

Stocks were narrowly mixed at midmorning Thursday as traders digested the gains of the past two sessions.

The Dow Jones Industrial Average, which finished the prior session at 12,741.86, its best-ever close, was tacking on 7 points at 12,749. The S&P 500 was down 1 point at 1454, and the Nasdaq Composite was up 1 point at 2490.

Federal Reserve Chairman Ben Bernanke is wrapping up his congressional testimony as he addresses the House of Representatives. During his remarks Wednesday to the Senate Banking Committee, Bernanke said the central bank is comfortable with interest rates and that some tentative signs of stabilization have recently appeared in the housing market.

Those benign comments gave stocks a boost Wednesday. The industrials climbed 87.01 points, or 0.69%, and the S&P rose 11.04 points, or 0.76%, to 1455.30. The Nasdaq gained 28.50 points, or 1.16%, to 2488.38.

During the last two sessions, the Dow has surged 189 points and the Nasdaq has jumped 38.

“Mr. Bernanke’s testimony continues the incremental reduction in hawkishness evident in the past few months’ FOMC statement, though there is nothing here that could be legitimately described as outright dovish,” said Ian Shepherdson, chief economist with High Frequency Economics, in a written message. “We don’t think this represents a real change in stance, so the market reaction looks overdone.”

Meanwhile, the economic docket was filled to the brim. The New York Fed said its Empire State Manufacturing index unexpectedly surged to a reading of 24.4 in February, up from 9.1 in January. Economists anticipated a slight increase to a reading of 11.

Elsewhere, the Labor Department said its import price index fell 1.2% last month, mostly in line with expectations. Imported petroleum prices fell 7.3% last month, and natural gas prices tumbled by 12%. Excluding petroleum, import prices were flat for the month.

Jobless claims rose last week by a greater-than-expected 44,000 to 357,000, according to a separate report from the Labor Department. The sharp increase was blamed on inclement weather across the U.S. The less volatile four-week moving average climbed by 17,500 to 326,250.

In another report, industrial production fell 0.5% in January, well below the unchanged consensus. Capacity utilization fell to 81.2% last month from 81.8% in December, also below consensus.

Data from the Philadelphia Fed on manufacturing activity in the mid-Atlantic region are due at noon EST.

In equities, the pace of earnings reports has slowed dramatically in the last couple of weeks, but influential names continue appear. Ahead of the opening bell, oil-services outfit Baker Hughes (BHI) said its quarterly revenue rose more than 20% year over year, but profits fell short of analysts forecasts. Shares were dropping $5.99, or 8.3%, to $65.95.

As for the day’s research calls, Goldman Sachs downgraded AMR (AMR) , parent of American Airlines, but upgraded low-fare carrier JetBlue (JBLU) .

Recently, AMR was losing 2% to $37.76, while JetBlue was gaining 4.4% to $13.57.

AG Edwards raised its rating on American Eagle Outfitters (AEOS) to buy from hold, and at Prudential, Schering-Plough (SGP) was cut to neutral from overweight.

American Eagle was higher by 2.9% to $31.84, and Schering-Plough was off 1.5% to $24.40.

Treasury prices continued to rally. Recently, the 10-year note was up 10/32 in price, yielding 4.69%, and the 30-year was rising 19/32 to yield 4.80%.

Commodities were mixed. Oil futures were off 4 cents to $57.96 a barrel on the New York Mercantile Exchange, and gold was up 30 cents at $672.30 an ounce.

Stocks slipped in Europe, but rose in Asia. London’s FTSE 100 was down 0.1% to 6417, and Frankfurt’s Xetra DAX was 0.1% weaker at 6955. Tokyo’s Nikkei was up 0.8% at 17,897, and Hong Kong’s Hang Seng advanced 1.6% to 20,538.