Business News

CNPC, KazMunaiGas in deal to tap Urikhtau gas field

2011-03-15T03:14:00.000-07:00

BEIJING, Feb 23 - China National Petroleum Corp agreed in principle with KazMunaiGas [KMG.UL] to form an equally-owned joint venture to develop the Urikhtau gas field in Kazakhstan, its company newspaper China Petroleum Daily reported on Wednesday.

Witnessed by the two countries' presidents, the two state-owned firms signed the agreement in Beijing on Tuesday, the report said.

Production in the field can feed a new Kazakhstan gas pipeline which is being built by the two companies.
The pipeline will be connected to the massive Central Asia-China gas trunk that starts from as far as Turkmenistan and enters China in its northwestern Xinjiang region.

The newspaper report did not mention any investment plan or potential gas reserves in the Urikhtau field.
CNPC, parent of PetroChina <0857.HK>, and KazMunaiGas started laying a first-phase, 1,164-kilometre gas line from Bozoi to Shymkent in Kazakhstan in December, which will be extended to Beyneu in Kazakhstan in a second phase later.

The two phases, with total length of 1,475 kilometres, will have gas shipping capacity of 10-15 billion cubic metres a year.

Singapore Hot Stocks-GMG Global up 8.8 pct after Merrill's "buy" call

2011-03-08T20:38:00.000-08:00

SINGAPORE, Jan 26 - Shares of Singapore's GMG Global rose as much as 8.8 percent on Wednesday after Merrill Lynch initiated coverage of the firm with a "buy" rating with a target price of S$0.50.

At 0254 GMT, shares of GMG Global, which owns rubber plantations in Indonesia, Cameroon and Ivory Coast, were 5.3 percent higher at S$0.30 with over 65.9 million shares changing hands.

Merrill Lynch said GMG's parent Sinochem, being China's largest rubber trader, will give GMG direct access to the China market, which consumes a third of the world's rubber production.

"The rubber sector is facing a severe supply shortfall post many years of underinvestment. With the rising demand driven by China and India auto, we expect the rubber price rally to last till 2012," the brokerage said in a report.

The rise in GMG's share price comes as Thailand's Sri Trang Agro cancelled its Singapore secondary listing, citing market volatility.

Mideast oil price rise 'big challenge' for airlines

2011-03-01T02:44:00.000-08:00

Surging oil prices due to political turmoil in the Middle East spell "very, very big challenges" for airlines, International Air Transport Association chief Giovanni Bisignani has said.

TOKYO (AFP) - – Surging oil prices caused by the political turmoil in the Middle East will create "very, very big challenges" for airlines, an industry body warned Wednesday.

"Oil is a big problem because it could change completely the picture" for the sector said Giovanni Bisignani, head of the International Air Transport Association, an organisation that represents some 230 airlines comprising 93 percent of scheduled international air traffic.

The political unrest that has swept the key oil-producing Middle East and North African region, including Libya, Bahrain, Yemen and Iran, has stoked fears of a disruption to global crude supplies and led to price spikes.

New York's main contract, light sweet crude for April delivery, rose 11 cents to $95.53 per barrel in Wednesday afternoon trade and Brent North Sea crude for April was up 69 cents at $106.47.

Bisignani said in Tokyo that high energy prices could turn what had been "forecast to be a profitable year into a very complicated year" and spell "very very big challenges" for airlines.

IATA recently predicted passenger traffic would grow for the second consecutive year after its crisis-driven drop in 2008, but it said net profits for airlines as a whole would fall 40 percent to $9.1 billion in 2011.

The forecast was based on an oil price of $84 per barrel for Brent crude.

A price of $104 dollars per barrel would mean extra costs of $32 billion dollars for the industry, Bisignani said.

"Part of this will be covered by fuel surcharges, but that is a commercial decision. But it's a big, big burden for an airline."

Looking ahead, he said "I would need a chief magician" instead of a chief economist.

"Let's hope the situation gets clarified. The impact is now not just on fuel prices but also on the market," he said, noting that the Middle East is a big passenger market and destination.

The regional political upheaval that started in Tunisia before spreading to Egypt is now gripping Libya, with reports of hundreds of deaths.

Long-serving leader Moamer Kadhafi on Tuesday ordered his supporters to crush an uprising and warned he would fight to the death to remain in charge of the country he has ruled since 1969.

"This is my country, my country," he raged on national television. "I will fight to the last drop of my blood."
The violence across the country -- inspired by the toppling of the leaders of Tunisia and Egypt -- has seen scores of people killed at the hands of Kadhafi's troops, sparking international outrage.

Libya, which has Africa's largest oil reserves and is the continent's fourth largest producer, is a member of the Organisation of the Petroleum Exporting Countries (OPEC), which ships about 40 percent of the world's crude.

Uprisings have also broken out in Morocco, Yemen, Bahrain and Iran.
However, further crude oil price rises could be capped after Saudi Oil Minister Ali al-Naimi said the OPEC oil cartel would step in to meet any supply shortage caused by the turmoil.

MARKET EYE-JP Morgan starts Yes Bank with overweight

2011-02-23T02:42:00.000-08:00

JP Morgan has started coverage on YES Bank with an 'overweight' rating and a price target of 350 rupees. It expects the bank will be able to deliver a loan growth of 35 percent per annum due to its small base and its focus on wholesale lending. The bank is also expected to sustain its supernormal return on assets at nearly 1.5 percent, the brokerage said in a note. The return on assets will be driven by fees from investment banking and debt syndication, transaction banking and selling third-party products such as insurance and mutual funds, it added. At 2:42 p.m., the stock was down 2.3 percent at 268.50 rupees. Reuters Messaging:sowmya.kamath.reuters.com@reuters.net

Japan Hot Stocks-H2O Retailing, Canon, Nintendo, Komatsu

2011-02-15T19:56:00.000-08:00

TOKYO, Jan 28 - The benchmark Nikkei average <.N225> fell 0.9 percent and the broader Topix <.TOPX> lost 1.1 percent on Friday.

The following stocks were on the move: **H2O RETAILING <8242.T> GAINS AFTER LIFTS PROFIT FORECAST**

Department store operator H2O Retailing Corp rose 4.4 percent to 616 yen after it lifted its annual operating profit forecast above analysts' estimates, helped by strong sales of winter clothing and lower costs than a year ago for rennovations to its Hankyu Umeda store in Osaka.

It now forecasts 9.7 billion yen, up from its previous estimate of 9 billion yen, and above an average estimate of 9.5 billion yen in a poll of 4 analysts by Thomson Reuters I/B/E/S.

H2O Retailing's operating profit surged by almost a third in the first nine months of its business year that began in April. 0200 GMT **CANON DOWN <7751.T>, OP PROFIT FALLS 1ST TIME IN 5 QUARTERS**

Canon Inc dropped 3.5 percent to 4,050 yen after the world's largest maker of digital cameras posted an operating profit of 82.8 billion yen for October-December, down 10 percent from a year earlier.

The year-on-year decline was Canon's first in five quarters, with revenue hit by a stronger yen and a high baseline the previous year, when sales jumped after the end of the financial crisis.

Canon was the most actively traded stock on the Tokyo Stock Exchange's main board and third biggest faller among the Nikkei 225 components.

Market players said the move was exaggerated as investors took profits after the stock closed 2.2 percent higher at 4,195 yen on Thursday before the company released its results. 0105 GMT **NINTENDO <7974.OS> FALLS AFTER WEAK Q3 EARNINGS**

Shares of Nintendo Co Ltd fell 1 percent to 22,310 yen after the firm reported a 46 percent fall in quarterly profit on Thursday, as sales of its ageing DS handheld device tumbled ahead of the launch of a new, 3D-capable model next month.

Nintendo's October-December operating profit totalled 104.6 billion yen , compared with 192.3 billion yen a year ago and lower than analysts' expectations of 118 billion yen.

For the year to March, Nintendo left its operating profit forecast at 210 billion yen, down from 356.6 billion yen the previous year and compared with a consensus of 203.5 billion yen in a poll of 25 analysts by Thomson Reuters I/B/E/S. [ID:nTOE70P06S] 0041 GMT **KOMATSU JUMPS ON FORECAST REVISION, STRONG Q3 RESULTS**

Shares in Komatsu Ltd <6301.T> jumped 3 percent to 2,520 yen after the construction machinery maker said on Thursday its group net profit in the nine months to Dec. 31 surged more than five times from a year earlier to 100.62 billion yen on strong sales in China and other emerging markets.

Komatsu also hiked its net profit forecast for the full year to March 31 by 16.7 percent to 140 billion yen, citing a pickup in demand for its products worldwide.[ID:nT27043T18]

It was the most actively traded stock by turnover on the Tokyo Stock Exchange's main board and the third-biggest gainer among the Nikkei 225 components. 0020 GMT **SONY GAINS ON NEW HANDHELD DEVICE**

Shares in Sony Corp <6758.T> gained 1.8 percent to 2,965 yen after it unveiled a new handheld gaming device on Thursday and announced it would make PlayStation games available on other makers' hardware, as it battles with Nintendo's <7974.OS> DS and tries to fend off competition from Apple Inc's iPhone.

Sony's new device, codenamed "NGP" for Next Generation Portable, features a 3G wireless data connection and a 5-inch organic light-emitting diode touch screen, as well as motion sensors and a rear touch panel. [ID:nTOE70Q05J] 0006 GMT (For IPO news, data and diary, click , for stocks click [.T])

Indian bond yields seen ranged; supply eyed

2011-02-08T19:50:00.000-08:00

MUMBAI, Jan 28 - Indian federal bond yields are expected to move in a tight range of 4-5 basis points on Friday, as traders will be reluctant to build positions ahead of $2.2 billion debt supply scheduled next week.

* Comments by top officials from the Reserve Bank of India on Thursday that the central bank was unlikely to take aggressive steps to improve liquidity will put upward pressure on yields. [ID:nSGE70Q06I]

* The RBI raised key interest rates by a quarter point each as expected on Tuesday, to clamp down on resurgent inflation and warned higher food prices could become entrenched if steps to boost output are not taken. [ID:nSGE70O051]

* Traders expect another rate increase at the central bank's next policy review in March. [ID:nSGE70Q02L]

* The yield on the most traded 8.08 percent, 2022 bond ended down 2 basis points on Thursday at 8.18 percent, while the less liquid benchmark 10-year bond yield shed 1 bps to 8.14 percent.

* U.S. Treasuries were little changed in Asia on Friday after rising on Thursday in a relief rally as the last of three Treasury debt auctions was met with solid investor demand, alleviating concerns over any waning appetite for government debt. [US/]

Obama urges quick approval of Korea trade deal

2011-02-01T20:17:00.000-08:00

* Obama urges vote on Korea deal "as soon as possible"

* Sets no timetable for Panama, Colombia pacts

By Doug Palmer

WASHINGTON, Jan 25 - President Barack Obama on Tuesday called on Congress to pass a free trade agreement with South Korea "as soon as possible," but offered no timetable for action on two other pacts with Panama and Colombia.

The South Korea "agreement has unprecedented support from business and labor, Democrats and Republicans, and I ask this Congress to pass it as soon as possible," Obama said in his annual State of the Union speech.

But the failure to set any time frame for enacting the other two deals was a disappointment for Republicans, who want prompt action on all the trade agreements left over from the administration of former President George W. Bush.

"I strongly believe that we should consider all three agreements in the next six months," House of Representatives Ways and Means Committee Chairman Dave Camp said earlier on Tuesday at a hearing on the pacts.

"This deadline isn't driven by politics or posturing. It is driven by the need to create jobs for American workers," the Michigan Republican said, calling the three pacts "a sure-fire way to create American jobs by growing U.S. exports."

Senator Rob Portman, an Ohio Republican, and Senator Joseph Lieberman, a Connecticut independent, also said on Tuesday they would push for a vote on a congressional resolution urging quick approval of all three trade pacts.

Obama's specific call for Congress to pass the South Korean agreement followed a recent renegotiation to address concerns raised by the U.S. auto industry.

It had complained the original version failed to tear down barriers to South Korea's auto market, while phasing out remaining U.S. tariffs on South Korean cars.

The other deals have been delayed by concerns among Democrats about human rights in Colombia and tax haven laws in Panama.

Obama mentioned the two pacts in his speech, but gave no indication when he would send them to Congress.
"Before I took office, I made it clear that we would enforce our trade agreements, and that I would only sign deals that keep faith with American workers, and promote American jobs. That's what we did with Korea, and that's what I intend to do as we pursue agreements with Panama and Colombia, and continue our Asia Pacific and global trade talks," he said.

Senator Charles Grassley, an Iowa Republican, said the United States needed to quickly enact all three pacts or it risked falling behind competitors such as the European Union and Canada that are aggressively pursuing new deals.

"The rest of world is moving forward without us, at the expense of America's workforce. For example, Caterpillar is waiting to export more bulldozers made in Illinois to Colombia under a free trade agreement signed in 2006 but never implemented," Grassley said.

The Obama administration is negotiating a regional free trade agreement with eight other countries in the Asia Pacific region that it hopes to substantially complete by the time it hosts the annual APEC leaders summit in November.

Some trade analysts also see a window of opportunity this year for the United States and other countries to conclude the long-running Doha round of world trade talks.

(Reporting by Doug Palmer; Editing by Frances Kerry and Eric Walsh)

NZ credit card billings fall in December - RBNZ

2011-01-25T20:12:00.000-08:00

WELLINGTON, Jan 26 - Credit card billings in New Zealand fell sharply in December, as consumers remained cautious amid a patchy economic recovery and weak labour market.

The Reserve Bank of New Zealand said on Wednesday total billings fell a seasonally adjusted 1.4 percent last month, the biggest drop since April, compared with a 0.1 percent decrease in November.

Billings were 2 percent higher than a year earlier, the lowest annual growth rate since February, from a rise of 3.7 percent in the November year.

Other data this month has shown a 0.9 percent drop in electronic retail card spending in December and a rise in retail sales in November. See and

The Reserve Bank of New Zealand is expected to keep its cash rate steady at 3 percent at its review on Thursday, with the sluggish economy expected to keep rates on hold until at least the middle of the year.

China's CNPC signs crude pact with Abu Dhabi's ADNOC

2009-08-18T05:33:00.000-07:00

Reuters

BEIJING, Aug 18 - China National Petroleum Corp said it has signed a memorandum of understanding with Abu Dhabi National Oil Co to cooperate in crude oil trading, shipping and storing.

The agreement was signed on Friday in Beijing, witnessed by top leaders from China and the United Arab Emirates, the top Chinese oil and gas firm said in a report on its website .

It did not give further details, and a spokesman for CNPC declined to comment.

CNPC inked a $3.29 billion service deal, its largest ever, with International Petroleum Investment Co of the UAE in December to build a 1.5 million barrel-per-day crude pipeline from Habshan oilfield in Abu Dhabi to the Fujairah port in the Middle East kingdom, Chinese media reported.

CNPC is the parent of PetroChina <601857.ss><0857.hk>.