Gold price touches highest
level since 1980
The price of gold leapt to
the highest level since the start of 1980, winning
support from runaway crude oil prices, traders said. On
the London Bullion Market, gold prices surged as high as
$767.09 per ounce. Gold prices jumped higher "on a
combination of a weaker dollar, geopolitical concerns,
positive investor sentiment and record high oil prices,"
said analysts at Barclays Capital. They added:
"Geopolitical concerns have come on the back of Turkey
debating potential military action in Northern Iraq to
combat Kurdish rebels while ... crude oil prices have
hit fresh all-time highs." New York's main futures
contract, light sweet crude for delivery in November,
surged to an historic $87.97 per barrel, while London
Brent oil hit a record $84.31. Gold prices are boosted
by record high oil prices, which in turn spark
inflationary concerns. The precious metal is seen as a
safe haven in times of both rising inflation and
geopolitical uncertainty.
Top
Euro slips against dollar
European single currency
slid against the dollar as the US currency won some
support from comments by European Central Bank chief
Jean-Claude Trichet, dealers said. The euro dipped to
$1.4183, from $1.4205 in New York late on Monday, but
was not too far off the record high $1.4283 set on
October 1. Elsewhere on Tuesday, the dollar fell to
117.02 yen, from 117.35. On the London Bullion Market,
gold jumped to $767.09 per ounce — which was last seen
in January 1980 – as the precious metal was boosted by
the flagging US dollar. Market players were waiting to
hear what finance ministers from the Group of Seven
(G-7) industrialised countries will say on currencies at
a meeting in Washington this week. Dealers said the
greenback was boosted after ECB President Trichet
repeated previous statements that US authorities want a
strong dollar
Top
Samsung, Giorgio Armani
tie up
Samsung Electronics said
it agreed to develop new premium electronic products
with Italian luxury goods designer Giorgio Armani. Under
the business tie-up the two firms would jointly develop
mobile phones, flat-screen televisions and other
electronic products, it said in a statement. The
“Giorgio Armani-Samsung luxury mobile,” the first of the
jointly-developed products, will be unveiled during a
Giorgio Armani fashion show in Milan, Italy, today. An
“Armani/Casa-Samsung luxury LCD television” under joint
development was also ready to be unveiled in January
2008, it added. “This powerful partnership will match
great design with leading technology to ensure
performance is as impressive as appearance,” said Yun
Jong-Yong, vice chairman of Samsung Electronics. South
Korea’s LG Electronics has already teamed up with
Italian luxury goods designer Prada to develop a mobile
phone.
Top
Dell to sell PCs through retail
stores in China
The US computer giant Dell
to sell its products through Gome, China's largest
consumer electronics retailer. Dell will begin selling
its PCs in about 50 major Gome stores from early October
and expand its presence into the first half of next
year, the US manufacturer said in a statement. "Chinese
consumers are increasingly sophisticated in how they buy
and use technology," Michael Tatelman, vice president of
marketing and sales for Dell's global consumer business,
said in the statement. Dell said it had previously
announced similar distribution relationships with Bic
Camera Inc. in Japan, Carphone Warehouse in Britain and
Wal-Mart in the US.
Top
Oman, Japan sign $660m loan deal for
Duqm project
Oman signed a special $660
million loan deal with Japan Bank for International
Cooperation (JBIC). The loan will be utilised to part
finance the much-publicised $1.096 billion Duqm Port and
Dry Dock project. The terms of the 14-year loan include
repayment in half-yearly instalments for 10.5 years
preceded by a grace period of 3.5 years. The loan
agreement is part of the government’s endeavours to
boost projects that contribute to sustainable economic
development and reducing the dependence on oil as a
major source of national revenue. The Duqm project
entails a port and a dry dock in the wilayat of Duqm in
the Al Wusta region. As part of its economic
diversification plans, the government proposes to
develop a large number of strategic industries in the Al
Wusta region. Modern port development in Oman began in
1974 by establishing Port Sultan Qaboos in Muscat. Port
development took a new turn with the establishment of a
new industrial port at Sohar. The container terminal at
Salalah Port first began operations in November 1998.
Top
HSBC to close US subprime mortgage
unit
HSBC Holdings, the
British-based banking giant, announced it will close its
subprime mortgage subsidiary in the United States,
saying it was "no longer sustainable." HSBC Holdings's
earnings have been heavily hit by its heavy exposure to
the troubled US subprime mortgage market, where home
loans are given to people with patchy credit histories.
HSBC said its closure of Decision One Mortgage will
entail a goodwill charge of around 880 million dollars
and a 65-million-dollar restructuring charge by the end
of the year. Decision One Mortgage, a unit of subsidiary
HSBC Finance Corporation, originates non-prime mortgages
through brokers. The bank said it will continue to
manage Decision One's loan portfolio, which totals 349
million dollars. HSBC was the largest provider of
subprime loans in the US in 2006, according to Inside
Mortgage Finance, a real-estate industry tracker, ahead
of the US leaders in the domestic market, New Century
Financial and Countrywide. Approximately 750 Decision
One employees will be affected by the closure, the group
said.
Top
Gold hits 28-year high
Gold hit a 28-year high in
Europe as the dollar’s continued slide to record lows
versus the euro raised the metal’s appeal to speculative
investors. Prices later eased as some investors pocketed
profits, but overall sentiment remained bullish, traders
and analysts said. The euro raced to an all-time high at
$1.4120 as the US currency came under heavy selling
pressure on expectations of further interest rate cuts
in the United States. The European single currency leapt
past $1.41 for the first time since its creation in 1999
amid a Federal Reserve warning that US mortgage market
woes could worsen. Other precious metals also advanced,
with silver rising to its highest in more than three
months, platinum hitting its highest since early May and
palladium touching a five-week peak. Spot gold rose as
high as $739 an ounce, its highest since January 1980,
also boosted by technical buying and short-covering. It
was quoted at $732.50/733.30 by 11:16 a.m. EDT, against
$734.20/735.00 in New York late. A weaker US currency
makes dollar-denominated metals cheaper for investors in
other currencies, while gold is also seen as a hedge
against oil-led inflation. Oil rose above $82 a barrel,
driven higher after companies shut output in the Gulf of
Mexico because of a storm threat.
Top
US crude hits $82.5 as Fed cut
boosts stocks
Global equities rallied
after an aggressive US rate cut allayed fears of a US
recession. Oil prices in New York surged to a record
high $82.51 per barrel following news that crude
reserves tumbled in the United States last week. The
dollar rose from a 15-year low against a basket of
currencies as investors bet the Federal Reserve’s
interest rate cut on Tuesday will help boost a slowing
US economy. The euro fell 0.1 per cent to trade at
1.3972 while the dollar slid 0.1 per cent against the
yen to change hands at 115.97. The dollar slipped to
115.79 yen. Traders, however, said the dollar is
expected to weaken in the long term, once investors
again look at rate differentials. The weakness of dollar
sent gold prices on their way to 28-year highs. In
London, gold prices surged to $726.70 per ounce in
morning trade, last seen in May 2006. Earlier in the
day, the Bank of Japan kept rates unchanged as expected
at 0.50 per cent. The Bank of Japan’s policy board voted
8-1 on Wednesday to keep the overnight call rate at 0.5
per cent, where is has been since February. The Bank of
England made a surprise U-turn, offering to inject £10
billion ($20 billion) next week into money markets in a
bid to bring three-month interest rates down.
Top
AirAsia X to fly China, Australia
in October
Malaysia's long-haul
budget carrier AirAsia X said Tuesday it will launch
inaugural flights to China and Australia in October with
the arrival of its first A330 aircraft. Landing rights
to both the destinations had been secured but the
airline was waiting for the Malaysian regulatory body,
the Department of Civil Aviation, to certify the plane.
The budget carrier also hopes to acquire another two
leased A330-300 aircraft in the middle of 2008. AirAsia
X's first A330 arrived in Kuala Lumpur and officials
will unveil the aircraft and announce routes and other
details later Tuesday. AirAsia and AirAsia X share
common shareholders, including AirAsia founder and chief
Tony Fernandes. Last week AirAsia said it will take a 20
percent stake in AirAsia X. The announcement came just
weeks after Richard Branson's Virgin Group took a 20
percent stake in the airline. The British billionaire
has vowed to ensure that the project turns a profit.
Top
Qalhat LNG wins global award
Qalhat LNG bagged the
prestigious ‘Energy Company of the Year 2006’ award at
the Petroleum Economist Awards conference in London
recently competing with 40 other international energy
companies. Qalhat LNG is the first Omani company and the
first Arab energy company to achieve the international
recognition. The award recognises the world’s top energy
organisations that have made significant contributions.
It includes expansion in new revenue-generating areas
and overcoming challenges to maintain excellence by
giving importance to the well-being of employees. The
award also justifies the company’s motto, ‘Your Partner
in Excellence’, by demonstrating its outstanding
achievements in all spheres, which includes completing
one of the best international projects ahead of
schedule, best safety record, outstanding Omanisation
achievements, most efficient start-up and much below the
allocated budget.
Top
British bank rocked by
customer panic
Worried customers were
expected to keep withdrawing savings en masse from
embattled British bank Northern Rock after the Bank of
England bailed out the lender. Customers formed lengthy
queues outside branches after Britain's fifth-biggest
home loan provider said it was facing severe
difficulties raising cash to cover its liabilities amid
the ongoing global credit squeeze. Northern Rock is the
first major British financial institution to be hit
severely by the global credit crunch sparked last month
by a crisis in the US subprime, or high-risk, mortgage
sector. Saturday's newspapers bore pictures of panicking
customers crowding outside Northern Rock branches
nation-wide to withdraw their savings. Some reported
that about a billion pounds (two billion dollars, 1.45
billion euros) had been pulled out of the bank, citing
sources. Shares in Northern Rock, which issued a profits
warning on Friday, plunged 31.46 percent to 438 pence at
the close, dragging the European banking sector lower as
investors fretted over potential difficulties elsewhere.
Northern Rock, based in Newcastle, north-east England,
warned its 2007 profits could be 147 million pounds (214
million euros, 297 million dollars) lower than expected.
Top
Google marks 10th anniversary
Google Internet search
engine has grown into the electronic centre of human
knowledge by indexing billions of web pages as well as
images, books and videos in these 10 years ago. On
September 15, 1997 Larry Page and Sergey Brin, two 24
year-old Stanford University students, registered the
domain name of ‘google.com’. The word is a variation of
‘googol’, which refers to the number 10 to the power of
100, a term popularised by US mathematician Edward
Kasner. Page and Brin incorporated Google one year
later, on September 7, 1998, in a household garage in
northern California. News of Google spread largely
thanks to the efficient way the search engine classified
results through algorithms, and it quickly became one of
the most used methods to find information on the
Internet. Google has become the most popular Internet
search engine in the world outside of China, Japan and
Russia, handling more than 500 million visits a day. In
2006 Google reached $13.4 billion in revenue – the third
part based on Internet ads – and profits of $3.7
billion. In 2006 Google bought YouTube, the largest and
most popular video exchange website, and soon after
bought DoubleClick, one of the Internet’s most powerful
ad services. Google also launched free email – Gmail –
as well as a word processing program, picture editing
programs and a calendar that competes directly with
products from software giant Microsoft.
Top
World economic freedom
rankings
Oman has moved up in the
world economic freedom rankings to 18th spot in 2005
from its 24th position in the previous year, according
to the Economic Freedom Survey of the World: 2007 Annual
Report, which was released by the International Research
Foundation yesterday. Oman is essentially tied with the
United Arab Emirates (UAE) for the regional lead.
Addressing a press conference here to announce the
rankings, Fred McMahon, Director of Centre for
Globalisation Studies, The Fraser Institute, said Oman
has achieved tremendous progress in property rights and
legal system. “Oman's achievements are great, but
improvements are possible,” he noted. Oman scores in key
components of economic freedom. For instance, the size
of government changed to 5.7 from 5.9 in the last year's
report, while legal structures and security of property
rights changed to 7.7 from 7.5. the Sultanate has taken
several important measures to improve its legal system,
while joining the World Trade Organisation (WTO), Arab
Free Trade Zone and lately signing a free trade
agreement with the United States.
Top
Euro strikes record at $.3879
The European single
currency surged to an all-time high against the dollar
to $.3879 as investors bet on falling US interest rates,
dealers said. This is the highest level since its
creation in 1999 and beat the old record of $1.3852 set
on July 24. The single currency had flirted with the
previous high point since Tuesday evening and burst
above it at 7.20am, before pulling back slightly. In
recent days, the dollar has been hit by poor US economic
indicators and increasing talk among analysts about the
possibility of a recession in the United States. Next
Tuesday, the US Federal Reserve is set to cut US
borrowing costs from 5.25 per cent – while the European
Central Bank is forecast to lift eurozone borrowing
costs in the coming months to at least 4.25 per cent,
dealers said. Widening interest rate differentials mean
that currency investors can reap higher returns from the
euro rather than the struggling dollar.
Top
OEIHC acquires 2.6pc stake in Dubai
Company
Oman & Emirates Investment
Holding Company has acquired a 2.16 per cent stake in
Dubai’s Al Barari Firm Management LLC for RO3.5 million.
Al Barari Firm Management, a company established to
develop the first phase of Al Barari Project in Dubai,
is a premium property developer that has carved a niche
in the industry. The first phase comprises construction
of 306 luxury villas and associated infrastructure over
a total development area of 9.3 million square feet. Abu
Dhabi Commercial Bank and Burooj Properties have taken a
stake of 6.49 per cent and 3.24 per cent, respectively
in Al Barari for AED183 million. Al Barari project is an
excellent investment vehicle that is expected to
generate attractive returns in the next three years.
Top
Trade deal within reach, says
WTO head Lamy
WTO Director-General
Pascal Lamy said a global trade deal was now within
reach but political leaders needed to give a “final
push” to complete the current round of negotiations.
Lamy warned that the consequences of failure could be
dire, saying protectionism historically had paved the
way to war, and that poor countries would feel slighted
if the industrialised world continued to enjoy favour
under the existing trade regime. Lamy called on the
United States to accept deeper reductions in farming
subsidies, for Europe and Japan to lower tariff
protections and for developing nations to reduce tariffs
on industrial goods in order to reach a global deal.
Arguments over the size of needed cuts to farming
subsidies and tariffs, especially in rich nations such
as the United States and France, are among the toughest
challenges in the way of a WTO deal on agriculture,
industrial goods and services. The talks have struggled
to overcome many countries’ resistance to opening their
farm and manufacturing industries to more competition.
Lamy warned that a collapse in talks could initiate a
period of legal bickering, trade disputes and indeed
aggravate diplomatic tensions that have in the past led
to armed conflict.
Top
Samsung Heavy Industries
wins $1.3b order
South Korea's Samsung
Heavy Industries has won a 1.3 billion dollar order to
build five container ships and one offshore
oil-processing vessel for a European client. The latest
deal bring its total orders this year to 15.2 billion
dollars, exceeding the annual target, the world's second
largest shipbuilder said in a statement. It has so far
this year won deals to build 86 vessels, including 46
container ships, 23 oil tankers and six drill ships.
South Korea, home to seven of the world's top 10
shipyards, clinched record orders last year because of
strong demand for crude oil carriers and offshore
exploration equipment as oil prices remained high.
Top
Raysut Cement initiative to
augment supplies
A floating cement terminal
has commenced operations at Port Sultan Qaboos in a new
initiative by Raysut Cement Company (RCC) to alleviate
cement supply shortfalls in the local market. MV Eastmed
Carrier, a specialised vessel equipped with bag and bulk
cement discharging facilities, is now churning out an
average of around 1,500 tonnes of cement per day to help
support the ongoing construction and real-estate boom in
the Sultanate, a senior RCC official said. RCC expects
to increase this amount to 2,000 tonnes per day starting
this month. The Panamanian-registered ‘floating silo’
commenced operations last month following a deal with
the Ministry of Commerce and Industry, which allowed
Raysut Cement to supply an additional 200,000 tonnes of
bagged and bulk cement over a three-month period. The
vessel has the capacity to produce up to 60,000 tonnes
of bagged and bulk cement per month, utilising ordinary
Portland cement shipments, depending upon prompt
deliveries.
Top
Mattel announces third
Chinese toy recall
Toymaker Mattel Inc
announced a third recall of Chinese-made toys, saying it
would take back more than 800,000 units globally that
contain "impermissible" levels of lead. In total,
522,000 U.S. toys and 322,000 outside the United States
are being recalled. The toys were shipped between Aug.
3, 2006, and July 31, 2007. The latest recall involves
three Fisher-Price toy models and eight Barbie brand
playsets. No Barbie dolls were included. Mattel
instructs people to go to its Web site
(www.service.mattel.com) to establish whether they own
an affected toy. After they fill out a form and send
back the affected parts, Mattel will send them
replacement and bonus parts. The recall arose out of
Mattel's investigation of its toys manufactured by
vendors in China. In the last five weeks, the company
already had announced two recalls of millions of Chinese
toys due to excessive amounts of lead paint and other
dangers. A spate of toy recalls has sparked concern over
the quality of products made in China. The U.S. House of
Representatives' subcommittee on commerce, trade and
consumer protection is to hold a Sept. 19 hearing on how
to protect U.S. children from imported products
containing lead paint. Lead paint has been linked to
health problems in children, including brain damage.
Top
Suez, GDF merger gets green light
French energy group
Suez and state-owned Gaz de France (GDF)
announced their long-awaited merger creating the world’s
fourth biggest energy company by market capitalisation.
The French state will retain 40 per cent of the new
GDF-Suez, Prime Minister Francois Fillon said,
highlighting that this meant the government would direct
the new 90-billion-euro ($123-billion) entity. GDF-Suez
will give France two of the biggest four energy
companies in the world, with the new company coming
behind Russia’s Gazprom, Electricite de France and
Germany’s E.ON, the two companies said in a statement.
The boards of the two groups approved the merger on
Sunday, finalising intense negotiations that began in
February 2006 and had to overcome union hostility to a
reduction of the state’s 80.2-per cent holding in GDF.
Under the deal, Suez’s water and other non-energy
businesses will be carved off into a separate unit
35-per cent owned by GDF-Suez. The remainder was set to
be floated on the stock market, with shares distributed
to Suez shareholders. The groups said the merger would
lead to cost-savings of 1 billion euros per year by
2013, with about 400 million euros by 2010.
Top
New CEO takes charge at PEIE
The Public
Establishment for Industrial Estates (PEIE) has
announced the appointment of Hilal al Hasani as its new
CEO. PEIE manages and develops industrial estates in
Rusayl, Sohar, Al Buraimi, Nizwa, Sur and Raysut. It is
also responsible for Al Mazunah Free Zone on the
Oman-Yemen border and the newly-created technology park,
Knowledge Oasis Muscat (KOM). Previously employed at the
Ministry of Commerce and Industry as the Director
General of Industry and as a qualified economist with
specialist knowledge of manufacturing, Al Hasani plans
to make a positive impact at PEIE.
Top
Qatar plans to acquire Nasdaq’s 31%
LSE stake
Representatives of the
Qatari Investment Authority (QIA) have indicated a
willingness to pay as much as £15 ($30.25) a share for
Nasdaq’s 31 per cent stake in the London Stock Exchange
(LSE) the Sunday Times newspaper said. Since Nasdaq
announced plans to sell its 31 per cent stake in the
LSE, media reports have speculated that Deutsche Boerse,
Borse Dubai, ASX and Singapore’s Temasek all were
interested buyers, but each has distanced itself from
the notion either publicly or privately. Nasdaq has said
it will not sell the whole LSE stake to one buyer,
though it could sell most of it to the same party.
The stake has been put into play following rivalry
between the American exchange and Borse Dubai for
control of the Scandinavian stock exchange OMX. UBS and
JP Morgan have been appointed to oversee the sale of
Nasdaq’s LSE stake.
Top
OGC to expand capacity of Sohar Gas
Supply Station
Oman Gas Company SAOC,
the Sultanate's premier gas transportation company, is
undertaking a major expansion of its Gas Supply Station
at the Port of Sohar to cater to the enhanced demand for
natural gas by new industries being established at the
industrial port. An Omani contractor Galfar Engineering
& Contracting has been awarded the contract to implement
the expansion project at a cost of RO 8.9 million. When
commissioned later this year, the Gas Supply Station's
capacity will be significantly enhanced to deliver a
total of 23 million cubic metres of natural gas per day.
According to OGC officials, the expansion will help meet
the gas requirements of new consumers and industries
being set up within the industrial port and its
environs. New capacity can be added in the future
depending upon demand. To supply gas to industries and
other consumers at Sohar, OGC commissioned a 32-inch
pipeline from Fahud to Sohar in 2002. This was followed
by the establishment of a major Gas Supply Station (GSS)
and distribution network within the industrial port.
Top
US Steel to acquire Stelco for
$1.1 billion
US Steel Corp. is
to acquire Stelco Inc. for about $1.1 billion to
strengthen its position as a supplier of flat-rolled
steel products in North America. Stelco, the last
Canadian-owned steelmaker, had put itself on the auction
block in June after a wave of takeovers within the
Canadian steel industry. US Steel will acquire Stelco
for C$38.50 per share, amounting to about $1.1 billion,
based on about 30 million fully diluted shares. They
announced the deal late on Sunday night. Hamilton,
Ontario-based Stelco, which emerged from bankruptcy
protection last year, had about $760 million of net debt
on its balance sheet as of June 30. Shareholders owning
more than 76 per cent of Stelco’s outstanding shares
have entered into agreements with US Steel committing
support for the deal. Stelco also owns several joint
venture interests including iron ore operations in the
United States and Canada. US Steel projects the deal,
expected to close before the end of 2007, will result in
annualised pre-tax synergies of more than $100 million
by the end of 2008.
Top
Workers strike cripples Kia
Motors
A strike by temporary
workers seeking better wages and job security has
crippled production at South Korea's second largest
carmaker Kia Motors, officials said. About 400 workers
from Kia's subcontractors have occupied the company's
main plant at Hwaseong, 30 kilometers (18 miles) south
of Seoul, for five days. They have demanded higher
wages, job security and equal working conditions with
full-time workers, a Kia spokesman said. The walkout
began after Kia's union on August 16 accepted a 5.2
percent rise in monthly basic salary, ending six weeks
of partial strikes that cost more than 360 billion won.
Kia is an affiliate of Hyundai Motor, South Korea's
biggest automaker. The Hyundai Automotive Group linking
the two companies is the world's sixth largest.
Top
Baosteel, CVRD to build steel slab plant in Brazil
The merged carrier would have about 34,000 employees and
an equity base of Rs1.5 billion. It would soon create
Special Business Units for the airline itself, a
low-cost carrier, cargo, Maintenance, Repair and
Overhaul (MRO) facilities and ground handling. The first
three services would be operated the first three under
Air-India, Air India Express and Air-India Cargo brands.
The two airlines have already converted two Airbus
A-310s and a Boeing-737 from passenger carriers to
freighters and a separate cargo airline will be created
after the merger.
Top
set to take
off
The merged carrier would have about 34,000 employees and
an equity base of Rs1.5 billion. It would soon create
Special Business Units for the airline itself, a
low-cost carrier, cargo, Maintenance, Repair and
Overhaul (MRO) facilities and ground handling. The first
three services would be operated the first three under
Air-India, Air India Express and Air-India Cargo brands.
The two airlines have already converted two Airbus
A-310s and a Boeing-737 from passenger carriers to
freighters and a separate cargo airline will be created
after the merger.
Top
New Air-India set to take
off
The merger of state-run
carriers Air-India and Indian cleared the last legal
hurdle with the Corporate Affairs Ministry giving its
green signal, setting the stage for the creation of a
mega national airline. The ministry approved the
application for their merger into a new entity National
Aviation Co. of India Ltd (Nacil) that has already been
incorporated, an official release said. Simultaneously,
the boards of the two companies, Indian and Air-India,
met here to formally approve the merger. These were
followed by a meeting of the Nacil Board, in which
former Air-India chief V Thulasidas took over as
chairman and managing director and former head of Indian
Vishwapati Trivedi as the joint managing director. The
unified carrier will now function under the brand name
of Air-India. The newly-merged Air-India, which has
already launched a direct flight between Mumbai and New
York with a brand new Boeing 777-200 (Long Range)
aircraft, would have a total fleet of 112 by 2011-12
when all the planes ordered by the two carriers are
delivered.
The merged carrier would have about 34,000 employees and
an equity base of Rs1.5 billion. It would soon create
Special Business Units for the airline itself, a
low-cost carrier, cargo, Maintenance, Repair and
Overhaul (MRO) facilities and ground handling. The first
three services would be operated the first three under
Air-India, Air India Express and Air-India Cargo brands.
The two airlines have already converted two Airbus
A-310s and a Boeing-737 from passenger carriers to
freighters and a separate cargo airline will be created
after the merger.
Top
AirAsia launches 3 new
Hong Kong routes
Malaysian budget carrier
AirAsia will launch three new daily services to Hong
Kong, press reports said, the latest sign that the
airport's luring of cheaper airlines was paying
dividends. AirAsia's chief executive Tony Fernandes said
the carrier would launch new daily routes from Bangkok,
Kuala Lumpur and Kota Kinabalu between December and
January. Fernandes added that the move was a long-held
ambition for the airline, which entered the greater
Chinese market with flights to Macau and Shenzhen, but
had previously resisted because of Hong Kong's high
landing prices. He said improved incentives from the
airport had tipped the balance in favour of offering the
new service, and hinted their may be more routes in the
future. AirAsia earlier this month unveiled a new deal
with Richard Branson's Virgin Airlines to develop
AirAsia X, the long-haul budget carrier which hopes to
build a network of long-haul flights across Asia, Europe
and the Middle East.
Top
China
to launch new label on food exports
China will next month
begin marking food exports that pass quality tests with
a special label, following recent safety scandals that
have hurt the industry's reputation, state media said.
Food exports that have passed inspections will carry the
label "CIQ", which stands for China Inspection and
Quarantine, the China Daily reported, citing a
regulation from the nation's quality watchdog. Packing
must also carry information, such as the producer's name
and address, batch number and production date, to keep
the source of any potential quality problems on record
and stem fake exports, the report said. The new
labelling system would begin on September 1. The system
is likely to increase the costs for Chinese food
exporters, with about 20,000 shipments worth 100 million
dollars in Dongguan, Guangdong province in the south
alone to be affected each year, the China Daily said.
Top
Sohar,
Oman refineries seek $1.3bn refinance
The state-owned Sohar
Refinery and Oman Refinery are planning to refinance old
debt, before merging operations of two refineries. The
borrowing from international lending institutions is
expected in the region of $1.37 billion. A special team
is looking into the matter and they are in the final
stage to conclude the deal with lending institutions. As
much as 90 per cent of Sohar Refinery's capital
expenditure was funded by way of term loan. The term
loan of $1,170 million for Sohar Refinery was provided
by eleven international and regional institutions,
including the Japanese Bank for International
Co-operation. The refinancing is required for merging
both refineries, which are fully owned by the
government. Oman Refinery, which started in 1982,
recently enhanced its throughput capacity by 25 per cent
to 106,000 barrels per day (bpd) from 85,000 bpd. Mixed
feedstock of Oman crude oil is delivered to SRC by ORC
via a 260km-long-24-inch-pipeline from Mina Al Fahal
facility in Muscat. SRC operates as a toll-processing
unit of ORC.
Top
Renaissance inks $37m finance facility
Renaissance has signed two
finance facilities with BankMuscat and BankDhofar. The
facilities for a total of $37 million will be invested
by Renaissance in its 100 per cent subsidiary Topaz
Energy and Marine Limited to support Topaz Energy’s
expansion and renewal programme of ‘offshore support
vessel fleet’ servicing oil and gas industry, a press
release received here said. Strong support from local
Omani banks has helped the group to move forward in its
oil and gas investment programme, which is poised to
deliver strong returns over the medium to long term.
Local banks have recognised the strong business model of
the group and have structured the terms of the
facilities accordingly.
Top
BoJ
to inject 400bn yen into banking system
The Bank of Japan
announced an injection of 400 billion yen (3.4 billion
dollars) into the banking system amid renewed turmoil in
global financial markets. It was the first time in three
days that the BoJ had pumped emergency funds into the
financial system as part of a concerted action by global
central banks to try to avert a credit squeeze caused by
problems in US mortgages. The Japanese central bank's
latest injection came after the Tokyo stock markets
tumbled for a second straight day in early deals after
another rout overnight on Wall Street. The Tokyo Stock
Exchange's benchmark Nikkei-225 index of leading shares
fell 339.30 points or 2.06 percent to 16,136.31 in early
trading, a day after sinking 2.19 percent to an
eight-month low.
Top
China pledges to improve
product safety
Oman Telecommunications
Company has reported a 13 per cent jump in its net
profit for the first six months of the current year
ended June 30, 2007. The net profit rose from RO42.963
million in June 2006 to RO48.475 million in the first
half of 2007. Total revenue rose by 11.6 per cent to
RO175.918 million in June 2007 as against RO157.579
million reported for the corresponding period of the
previous year. Operating expenses increased by 13.4 per
cent to RO121.360 million compared to RO107.016 million
for the same period of last year. The increase in
operating expenditure can be attributed to
interconnection expenses, depreciation, commissions and
royalty charges. The EPS stands at RO0.065, which is
12.9 per cent higher than the corresponding period of
previous year. Total subscriber base of Omantel grew by
12.4 per cent to 1.73 million compared to 1.54 million
in the corresponding period of previous year.
Top
SIA A380 debut on October
25
Singapore Airlines (SIA),
which will be the first to receive delivery of the
Airbus A380 jet, said the passenger plane will make its
commercial debut on October 25. Flight SQ380's first
commercial flight departing Singapore for Sydney on
October 25 will take place 10 days after SIA receives
its first of 19 A380s from European aircraft maker
Airbus, the carrier said in a statement. SIA, which will
receive its first A380 in Toulouse, said SQ380 will be
configured to seat 471 passengers in three classes with
the new Singapore Airlines Suites the most luxurious
segment. The plane is capable of carrying more than 800
passengers in an all economy-class configuration, and
555 in a standard three-class set-up. The Singapore flag
carrier announced last month seats on the A380 first
commercial flight between the city-state and Sydney will
be offered for sale on the eBay online marketplace with
all proceeds from the ticket sales to go to charity.
Top
Omantel H1 net profit rises RO48.47m
Oman Telecommunications
Company has reported a 13 per cent jump in its net
profit for the first six months of the current year
ended June 30, 2007. The net profit rose from RO42.963
million in June 2006 to RO48.475 million in the first
half of 2007. Total revenue rose by 11.6 per cent to
RO175.918 million in June 2007 as against RO157.579
million reported for the corresponding period of the
previous year. Operating expenses increased by 13.4 per
cent to RO121.360 million compared to RO107.016 million
for the same period of last year. The increase in
operating expenditure can be attributed to
interconnection expenses, depreciation, commissions and
royalty charges. The EPS stands at RO0.065, which is
12.9 per cent higher than the corresponding period of
previous year. Total subscriber base of Omantel grew by
12.4 per cent to 1.73 million compared to 1.54 million
in the corresponding period of previous year.
Top
ONICH posts RO 7.57m profit
Oman National
Investment Company Holding announced a net profit of
RO 7.57 million for the first quarter ending June, 2007,
thanks to surging investment income. This is against a
loss of RO 913,000 for the same three-month period last
year, the company said in a statement. Unlike other
MSM-listed companies, ONICH follows April-March period
as financial year. The firm trend on the Muscat
Securities Market this year helped the company to
achieve better investment income, which was not the case
last year. During the first quarter of last year
slackness on the bourse affected the company’s
investment income. ONICH said its investment income
stood at RO 7.8 million as against RO 3.08 million loss
from investment for the same quarter of 2006. ONICH,
which has interests in insurance business through its
subsidiaries and affiliates, is one of the largest
investment holding companies listed on the MSM.
Top
DFG to buy 15% of
BankMuscat
The board of directors of
BankMuscat has approved a proposal to raise capital
through private placement of 15 per cent of its shares
with Dubai Financial Group (DFG), a Dubai Group company,
for a total cost of RO238.3 million ($619 million). This
is the single largest cross border investment in the
banking sector in the region. Dubai Group is a member of
Dubai Holding. This proposed transaction is subject to
approvals from the regulatory authorities and the
shareholders of the bank. BankMuscat will issue 161.57
million ordinary equity shares to DFG through a private
placement. This represents 15 per cent of the capital of
BankMuscat post-private placement. The price of each
share would be RO1.475. The deal is expected to be
completed before the end of this year.
Top
Galfar
IPO to hit market
Galfar will enter the
capital market on Sunday with its initial public
offering of 100 million ordinary shares at a price of
RO0.602 per share — comprising nominal value of RO0.100,
premium of RO0.500 and issue expenses of RO0.002 per
share, aggregating to RO60.2 million. The objectives of
the issue include raising capital to fund the company’s
capital investment programme, and meeting long-term
working capital requirements and listing the company’s
shares on MSM. Galfar was registered in 1975 and
subsequently was incorporated in 1986 as a limited
liability company. Galfar is currently undergoing the
due process of transformation into an SAOG company
organised under the laws of the Sultanate of Oman. The
subscription will be open to Omani and non-Omani
individuals, corporates, institutions, investment funds,
and pension funds. Non-Omani individuals/corporates can
own shares of the company once listed with Muscat
Securities Market, to an extent of 70 per cent of the
share capital. The number of shares subscribed by each
person shall not be less than 1,000 shares and in
multiples of 100 thereafter. For juristic persons,
corporates, investment funds, and pension funds, shares
subscribed to shall not be less than 10,100 shares and
in multiples of 100 thereafter. Distribution of shares
shall be on pro-rata basis. Allotment for non-Omani will
be limited to a maximum of 40 per cent of the total
shares offered. Oman Arab Bank Investment Management
Group is the issue manager. The issue closes on
September 10.
Top
NZ govt backs
opposition to airport sale to Dubai
The New Zealand government
backs opposition to the sale of a majority stake in the
country's aviation hub in Auckland to a Dubai company,
Trade Minister Phil Goff said. Shares in Auckland
International Airport plunged as much as six percent
following the news, although Goff would not indicate if
the government had the power to block the sale of a
stake of up to 60 percent to Dubai Aerospace Enterprise
(DAE) for up to 2.6 billion dollars (1.98 billion US).
Local government councils in Auckland and Manakau cities
hold 22.8 percent of the airport and their opposition
would probably scuttle the bid announced last month,
which has to be approved by 75 percent of shareholders.
The sale also has to be approved by the government's
Foreign Investment Review Board. Goff declined to say if
the government could block the bid through the review
board, which does not come under his responsibility.
Top
Samsung resumes chip production
South Korea's Samsung
Electronics, the world's largest memory chipmaker
resumed production at its key plant after a day's
suspension due to a power failure. A malfunctioning
power switchboard at a plant in Suwon, 50 kilometers (30
miles) south of Seoul, halted production of memory chips
such as those used in digital cameras and MP3 players.
The stoppage could cause a loss of some 40 billion won
(43 million dollars), less than an initially projected
50 billion won, the spokeswoman said. The production
lines comprised some 30 percent of Samsung's overall
memory chip production, according to the Yonhap news
agency.
Top
Oil exports decline 6.5pc
The monthly statistical
bulletin by the Ministry of National Economy showed that
the Oman’s total exports of crude oil stood at 95.576
million barrels during the first five months of 2007,
against 102.224 million barrels recorded during the
corresponding period in 2006, showing a fall of 6.5 per
cent. Its total production of crude oil and condensates
stood at 107.656 million barrels by the end of May 2007,
against 113.733 million barrels during the corresponding
period in 2006, constituting a fall of 5.3 per cent. The
average of daily production was 713,000 barrels at the
end of May 2007, against 753,002 barrels during the
corresponding period in 2006, constituting a fall of 5.3
per cent. The average price of Oman oil barrel fell by
4.4 per cent by the end of May 2007 to $58.35 per barrel
against $61.02 per barrel during the corresponding
period in 2006. China topped the countries importing
Omani oil as it imported 42.952 million barrels during
the first five months of 2007, against 36.184 million
barrels during the corresponding period in 2006,
constituting a 18.7 per cent rise. Thailand imported
16.380 million barrels by end of May 2007, against 25.81
million barrels, constituting a drop of 36.5 per cent.
Japan imported 12.81 million barrels, compared to 8.67
million barrels during the corresponding period in 2006,
constituting a rise of 47.7 per cent.
Top
Kuwait revalues dinar
against dollar
Kuwait has raised the
value of its dinar to the dollar for the third time
since it was de-pegged from the US currency in May, with
one dollar now worth 0.282 dinars, KUNA official news
agency reported. The dinar previously stood at 0.287
dinars. On May 20, Kuwait pegged its dinar to a basket
of international currencies after more than four years
of linking it to the dollar, in a bid to reduce
inflationary pressures. Kuwait had historically pegged
the dinar to a basket of currencies before pegging it to
the dollar on January 5, 2003 in preparation for single
currency in Gulf Cooperation Council states planned for
2010. The oil-rich Gulf emirate denied at the time that
de-pegging the dinar from the dollar would scupper plans
for the GCC single currency.
Top
ArcelorMittal plans massive
India investment
Global magnate Lakshmi
Mittal is looking to build two steel plants in India for
about 18 billion dollars which would be the largest ever
foreign investment in the country. The investment by
ArcelorMittal would eclipse the 12-billion-dollar steel
plant South Korean rival POSCO plans to build in eastern
Orissa state, the newspaper reports said. Last December,
ArcelorMittal, the world's biggest steelmaker, signed an
8.7-billion-dollar project with the Orissa government to
build a 12-metric- tonne capacity steel plant in the
resource-rich eastern Indian state. Now, ArcelorMittal,
which has no manufacturing facilities in India, says it
will also build a plant in eastern Jharkhand state, the
reports said. The plants would have combined capacity of
24 million tonnes, the Press Trust of India said.
Mittal's plans highlight the race among global steel
giants to secure the supply of key materials, such as
iron ore, to feed a growing world economy.
Top
GM to invest $500m in Brazil, Argentina
General Motors Corp will
invest $500 million in its operations in Argentina and
Brazil for developing small vehicles for Latin America
and other emerging markets. GM will put $400 million of
that into developing compact cars that would be built at
GM's plant in Sao Caetano in greater Sao Paulo, Brazil,
and in Rosario, Argentina. The automaker expects the
cars to be on the market by around 2011, but it did not
say if the cars would run on ethanol. Brazil leads the
world in production of ethanol, a fuel that produces
fewer pollutants than gasoline, burns cleaner and is
made from renewable sources such as sugar cane or corn.
Another $100 million will be invested in GM's technology
centre in Sao Caetano and Indaiatuba, also in Sao Paulo,
Chief Executive Rick Wagoner said after the announcement
in Sao Paulo. Wagoner was president and managing
director of GM Brazil in 1991 and 1992.
Top
Egypt’s Orascom to invest
in N Korea
Egypt's
Orascom Construction Industries will invest $115 million
in a North Korean cement plant amid growing hopes that
Pyongyang's disarmament will lead to more foreign
investment in the country. OCI, a cement and
construction group had agreed with North Korea's
state-owned Pyongyang Myongdang Trading Corporation to
take a 50 per cent stake in Sangwon Cement. Cairo-based
OCI said it would use proceeds generated by the
investment to modernise and upgrade the cement plant,
boosting its annual capacity from 2.5 million tonnes to
3 million tonnes. A large part of the country's recent
economic development has come through cooperation with
South Korea.
Top
CMA efforts bear
fruits
In a
meeting with CMA, Oman United Insurance Company agreed
for immediate payment of insurance claims of those who
have comprehensive coverage, but without any STF
coverage. This is in the aftermath of the recent
cyclone. CMA based on its regulatory responsibility of
the insurance sector endeavours to address the issues
related to the compensation of policyholders whose
policies are not covered by natural disasters, said an
official at the Directorate General of Insurance
Regulation of CMA. The company expressed readiness to
indemnify the policyholders whose signatures were not
obtained as to their desire not to have disaster
coverage as part of its legal, social and humanitarian
responsibility. CMA appreciated the insurance companies
who complied with the legal requirement of the vehicles
insurance regulation based on their legal, social and
humanitarian responsibility in these circumstances.
Top
Al
Batterjee to set up unit in India
Saudi
Arabia-based Al Batterjee Group plans to set up a
manufacturing plant for baby care products in India and
is targeting a turnover of Rs200 million in the first
year of operations in the country. the facility would be
established soon, but declined to specify the investment
figure and location of the proposed unit. The company
was focusing on India as a major outlet for the ‘Nunu’
brand of baby care products. It had tied up with Kerala-based
Valy group for marketing of products, which are sold in
over 37 countries, he said. The products would include
baby shampoo, powder, soap, lotions, oil and baby wipes.
Jose Valy of the Valy group said the products were being
launched in Kerala first as several Keralites in the
Gulf were aware of the brand.
Top
China's
economy set to overtake Germany
China's
economy grew so rapidly in the first
half of 2007 that it is likely to overtake Germany as
the world's third-largest by the end of this year,
analysts say. The release said January to June figures
for Asia's second biggest economy will provide fresh
evidence that Beijing's economic braking measures have
had little effect. China's sizzling economy expanded
even faster than originally thought last year, with the
government revising 2006 growth domestic product (GDP)
to 11.1 percent from 10.7 percent. Data released by
China's statistics bureau last week showed the economy
was worth 21.09 trillion Yuan in 2006, about 2.65
trillion dollars based on last year's average exchange
rate of 7.97 Yuan to the dollar. The revision puts China
in striking distance of Europe's largest economy within
months. According to the World Bank, Germany's economy
was worth 2.9 trillion dollars at the end of 2006.
Economists expect GDP in the second quarter to near or
equal its breathtaking January to March pace of 11.1
percent growth.
Top
Egypt’s 3rd largest public
sector bank for sale
Egypt
to offer 80 per cent of the country’s third largest
public sector bank, Banque du Caire, to a strategic
investor in a major step forward for its long-running
banking sector reform plan, a cabinet spokesman said.
Egypt is in the midst of a major economic reform
programme led by Nazif who in November 2005 announced
that Banque du Caire would merge with Bank Misr, the
second largest bank, to strengthen institutions. The
announcement was the first indication that the bank
would be privatised instead. “Last year the government
was thinking of a merger but then experts revised the
package when it was found that if we merge the new
entity it would not be as strong as it could be,” Radi
said. Of the remaining 20 per cent of the bank’s assets,
five percent would go to employees and 15 per cent would
be offered on the stock market.
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