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USDA revokes OK for Tyson chicken labels

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(AP) – The U.S. Department of Agriculture has told Tyson Foods Inc. to stop selling chicken as ‘raised without antibiotics’ after the agency said it made a mistake in approving that label, but Tyson disputed the finding Monday and hopes to win approval for a modified label.

The world’s largest meat processor said it has been in discussions with the USDA since at least September about the label it introduced this summer in a major marketing campaign for its fresh chicken.

According to a Nov. 6 letter from the USDA, the agency told Tyson it had mistakenly overlooked a feed additive for Tyson’s chicken when it approved the no-antibiotics label.

Springdale, Ark.-based Tyson said Monday that the additives, called ionophores, are not antibiotics. The USDA said in its letter that the agency’s food safety arm considered ionophores to be antibiotics.

Tyson spokesman Gary Mickelson said the company plans to submit for USDA approval a new label that still says ‘raised without antibiotics’ but adds some qualifying language about ionophores.

The USDA has given Tyson a temporary stay of 45 days from Nov. 6 to submit a new label and new arguments, to change its feed formula, or to stop using the label. Tyson said it expects no disruption in supplies to consumers.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

OPEC SUMMIT ROUNDUP Production hike prospects fade as Abu Dhabi summit looms

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RIYADH, Saudi Arabia (Thomson Financial) – The prospect of OPEC ramping up its oil output when it meets at Abu Dhabi in December has diminished after the oil cartel united behind the view that the fundamentals of supply and demand are not responsible for the spike in oil prices to near 100 usd a barrel.

While OPEC aimed to shy away from giving a clear signal on its short-term output intentions at its third-ever summit, Saudi’s King Abdullah, head of the cartel’s largest producer, indicated he was comfortable with the current price level, despite numerous calls for more oil in the market from consumer nations.

Price hawks Venezuela and Iran were always expected to express their satisfaction with prices close to the 100 usd mark, but King Abdullah’s view perhaps came as more of a surprise. He said oil prices, when adjusted for inflation, were little higher than those seen in the 1980s.
OPEC watchers said his comments have tipped the scales against another output increase in December, which most Western economies have been hoping could help bring prices down and alleviate pressures on the global economy.

King Abdullah’s comments, allied to those of OPEC Secretary General Abdalla Salem El-Badri, who said no production increase would come unless the organisation saw tighter supply as the reason for continuing high prices, suggest an output hike is less likely.

Saudi Arabia pushed through a production hike of 500,000 barrels per day at its last ministers’ meeting in September, despite widespread opposition within the organisation, which explains away the recent spike in prices to the actions of speculator, rather than the usual fundamentals of supply and demand.

OPEC’s largest producer now seems to share the view of other member states, though its close ties to the United States may see it soften its stance if prices fail to ease.

Oil is currently camped out just below the psychological level of 100 usd a barrel, having risen by more than 50 pct since the start of the year.
OPEC has blamed a string of factors for the rise, including geopolitical tensions, the influence of speculators on the international oil markets, and the historic weakness of the US dollar, which is currently languishing close to all-time lows against the major currencies.

Dollar weakness proved a major point of controversy at this year’s conference, after ministers’ concerns on the subject at a closed-door meeting ahead of the Summit were accidentally broadcast to journalists.

Iran’s tabling of a motion to stop the pricing of crude in dollars on the international markets — a move supported by Venezuela — was quickly slapped down by the Saudi delegation and others. The motion was later defeated at vote 10-2, reliable sources said.

El-Badri said after the meeting that the pricing of crude oil was an issue ‘for individual countries to decide’, not the OPEC secretariat.
The matter re-surfaced later when Iran’s President Mahmoud Ahmadinejad said in a press conference after the summit that diversification of crude pricing away from the dollar would be beneficial to all countries.

The matter is now likely to be hammered out by ministers through diplomatic channels in the coming months.

The question of the US dollar highlighted a growing disagreement within OPEC as to the role of the cartel. Venezuela’s President Hugo Chavez called yesterday for OPEC to re-establish itself as a political entity, and take on a more active role on the world stage.

Chavez also warned oil prices could easily hit 150-200 usd should the US be, ‘mad enough to attack Iran or threaten Venezuela’.
His position was later supported by Iran and newly rejoined cartel member Ecuador, with the latter potentially joining the ‘anti-US’ chapter of Venezuela and the Islamic republic.

The re-politicisation of the organisation was opposed by the other member states. The summit ended with OPEC reaffirming its commitment to providing the world with reliable supplies of oil.

In 1973, OPEC ceased production during the Arab-Israeli war, which sparked an oil crisis.

The summit also saw Saudi Arabia promise to give 300 mln usd to fund research in to climate change technology, while Qatar, Kuwait and United Arab Emirates ponied up with 150 mln usd each.

d.sheppard@thomson.com; jan.harvey@thomson.com;
andrew.macdonald@thomson.com

har/ds1/am/pp/am

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OPEC SUMMIT Saudi’s King Abdullah says oil should not become tool of war UPDATE

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(Updates to add background to King Abdullah’s comment)

RIYADH (Thomson Financial) – Saudi Arabia’s King Abdullah said on Saturday that oil should not be allowed to become a tool of war, in a speech at the opening of the summit for OPEC leaders in Riyadh.

Shortly before King Abdullah spoke, Venezuelan President Hugo Chavez warned oil prices could hit 200 usd a barrel if the United States attacked Iran or Venezuela.

‘If the United States was mad enough to attack Iran or aggress Venezuela again the price of a barrel of oil could reach 150 usd or even 200 usd,’ he said.

‘The basis of all aggression is oil. It is the underlying reason,’ he said, pointing to the war in Iraq and US threats against Iran.

‘Today OPEC stands strong. It is stronger than it has ever been in the past,’ he said. ‘OPEC should set itself up as an active geopolitical agent.’

He also suggested the 12-member organisation should ‘ask the most powerful nation in the world to stop threatening OPEC’, referring to the United States.

tf.TFN-Europe_newsdesk@thomson.com

afp/am/am

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Chevron’s Kazakstan Tengiz oilfield jv fine reduced to 309 mln usd

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ALMATY, Kazakhstan (Thomson Financial) – Chevron’s Tengiz oilfield joint venture in Kazakhstan has had its fine for environmental violations at the oilfield reduced to 309 mln usd on appeal, roughly half of the initial fine of 609 mln usd.
The fine was reviewed yesterday, said Yerbol Kouanov, head of law services for the protection of the environment department of the Atyrau region, where Tengiz is situated.
He added the fine was paid yesterday by the TengizChevroil joint venture, controlled 50 pct by Chevron. The company must also pay 10 mln usd in legal fees.
At the time of the initial violation, the environment minister Nurlan Iskakov said: ‘In the past, the violations were almost systematic — there are 98 accidents, 15 of which were concealed between 2003 and 2006. We have set the fine at 74.4 bln tenge, or 609 mln usd.’
tf.TFN-Europe_newsdesk@thomson.com
jag/lht/jag
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Shanghai futures exchange expects to launch silver futures – official

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SHANGHAI (XFN-ASIA) – The Shanghai Futures Exchange expects to launch silver futures following the approval of gold futures by the regulator, a bourse official said.
The bourse has also submitted an application to the regulator to trade in steel futures, said Huo Ruirong, the deputy executive officer of the Shanghai bourse.
He added that it is also considering the launch of other futures such as nickel, lead, crude oil, oil products, liquefied natural gas (LNG) and coal.
‘We are optimistic about winning approval to trade (these) products in the near future,’ Huo said.
Meanwhile, he reiterated at a conference here that gold futures are to be unveiled have ry soon’, although no timetable was given.
The Shanghai Futures Exchange won regulatory approval to trade gold futures in September.
Currently, it trades in copper, aluminum, zinc, natural rubber and fuel futures.
ina.zhou@xfn.com
allen.shu@xfn.com
iz/als/kmq
xfnals/xfnkm
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Family horrified when toy sedates child

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LITTLE ROCK, Ark. (AP) – The parents of a Jacksonville toddler were horrified when their child swallowed part of a colorful toy bead set made in China and then passed out.

He apparently was overcome when the coating on the beads metabolized into a chemical compound known as the ‘date rape drug.’

‘I thought he was going to die. I didn’t want to tell my kids that, of course, but I thought he was going to die,’ said Shelby Esses, whose son Jack swallowed a handful of Spin Master Aqua Dots the day before Halloween. ‘It was horrible.’

In the latest recall involving Chinese toymakers, the Consumer Product Safety Commission on Wednesday ordered Aqua Dots off store shelves.

Two children in the U.S. and three in Australia were hospitalized after swallowing the beads.

Spin Master Aqua Dots can be arranged into designs and then fused together when sprayed with water.

Jack Esses, 20 months old, started stumbling and throwing up the Aqua Dots after playing with his sister’s set on Oct. 30, his mother said in an interview Thursday. For a time, he slipped out of consciousness — waking up only to vomit.

‘I thought that the Aqua Dots had to have done something, but I wasn’t sure because I didn’t think they were toxic. There was no warning on the box that said they were toxic. It just said that they were a choking hazard,’ the child’s mother said.

Jack’s father Jonathan is training to pilot C-130 planes at the Little Rock Air Force Base in Jacksonville.

Dr. Matt Jaeger of Arkansas Children’s Hospital treated the child and said he was very worried when he first saw him. The hospital started tests and performed a head scan, but within hours the boy recovered.

‘He got better so fast we ended up letting him go home,’ Jaeger said.

Scientists say a chemical coating on the beads, when ingested, metabolizes into gamma hydroxy butyrate, the so-called date rape drug. The compound can induce unconsciousness, seizures, drowsiness, coma and death.

‘He was out for about six hours, and he woke up just kind of on his own and, within minutes, was back to his normal self,’ Shelby Esses said. ‘He was just happy and yelling and wanting to get out of the hospital and causing a stir. All of the nurses wanted to come see him.’

Before the child was released, his father crawled around on the carpet at home to make sure every Aqua Dot was out of the house.

Australia-based Moose Enterprises distributes the toys in 40 countries.

Jaeger said the hospital lab was able to identify the chemical involved after Shelby Esses brought in toy components for testing.

Retailer Toys ‘R’ Us issued a ‘stop sale’ for Aqua Dots on Tuesday in its North American stores and on its Web site after it learned of the news.

In Australia, the toy was named toy of the year at an industry function. But the toys, known as Bindeez in that country, were ordered off store shelves on Tuesday when officials learned that a 2-year-old boy and a 10-year-old girl were hospitalized after swallowing the beads. A 19-month-old toddler also was being treated.

Since the spring, toy companies have recalled millions of Chinese-made goods worldwide. Products including Barbie doll accessories and toy cars were pulled off shelves because of concerns about lead paint or tiny detachable magnets that could be swallowed.

A company spokeswoman for Moose Enterprises’ Hong Kong office said Aqua Dots production was outsourced to a mainland Chinese factory. She refused to elaborate and referred all further requests for comment to the company’s head office in Australia.

Moose Enterprises said Bindeez and Aqua Dots are made at the same factory in Shenzhen in southern Guangdong province.

The toys were supposed to be made using 1,5-pentanediol, a nontoxic compound found in glue, but instead contained the harmful 1,4-butanediol, which is widely used in cleaners and plastics.

The Food and Drug Administration in 1999 declared the chemical a Class I Health Hazard, meaning it can cause life-threatening harm.

Both chemicals are manufactured in China and elsewhere, including by major multinational companies, and are also marketed over the Internet.

It’s not clear why 1,4-butanediol was substituted, though there is a significant price difference. The Chinese online trading platform ChemNet China lists the price of 1,4-butanediol at between about $1,350-$2,800 per metric ton, while the price for 1,5-pentanediol is about $9,700 per metric ton.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Company charged with selling bad seeds

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LOS ANGELES (AP) – The president of a food distribution company has been charged with improperly labeling and selling 4,000 pounds of sesame seeds contaminated with salmonella, prosecutors said.

Oded Kenan and his Woodland Hills-based company Woodhouse Commodities Inc. were charged with one count of adulterated food violation and one count of misbranding, the City Attorney’s office said Tuesday.

Kenan faces up to two years in jail and both he and his company could face up to $2,000 in penalties if convicted.
Calls to Kenan and the company after business hours Tuesday were not immediately returned.

Prosecutors said the case began when Woodhouse purchased 840 bags of hulled sesame seeds from an Indian company and the seeds were held at the Port of Los Angeles for a random inspection by the U.S. Food and Drug Administration.

Despite the hold, Woodhouse transferred the bags to a distributor for sale. Realizing the mistake, the company asked for the bags’ return but 80 of them had already made their way to bakeries, cafes and restaurants in Las Vegas, prosecutors alleged.

In January, results from the FDA testing returned positive for salmonella and Woodhouse submitted the bags for an irradiation treatment to kill the detected bacteria.

But the company failed to inform the FDA of the 80 bags that went to Las Vegas, and distributed six irradiated bags for sale without putting a ‘Do not irradiate again’ label on them in violation of federal regulations, prosecutors said.

The label was required to prevent a second irradiation of food productions and potentially expose the seeds to high radiation levels.

None of the bags sold to Las Vegas businesses were recovered, and there were no reports of illnesses from the consumption of the seeds, said city attorney’s spokesman Frank Mateljan.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Italy’s Fri-El to use IPO proceeds for capacity growth

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MILAN (Thomson Financial) – Fri-El SpA, the Italian renewable energy producer, said it will raise up to 461 mln eur from its initial public offering and will use the funds to meet its target of increasing installed capacity from 232.5 megawatts (MW) to 1,995 MW by 2012.

‘We intend to invest 2.4 bln eur from here to 2011, mainly in wind, and expand our installed capacity which is the main driver of our revenue base,’ Fri-El CEO Josef Gostner said at an IPO presentation.
The company said it will invest 1.3 bln eur in wind power development until 2010; 773 mln in biomass projects until 2011; 232 mln in biogas and 60 mln in biodiesel, Gostner said.

By 2012, the company aims to have installed wind capacity of 1,196 MW, biomass capacity of 724 MW, and biogas capacity of 75 MW, he said.
In its IPO, Fri-El will offer retail and institutional investors a maximum of 133.5 mln new shares, equal to 25 pct of the company’s capital.

The price range is 2.30-3.45 eur per share, valuing the company at 0.921-1.382 bln eur.

Fri-El’s current shareholders, the Gostner family and their financial holdings, will also sell up to 20.025 mln existing shares to service a greenshoe option given to global coordinators UniCredit and Merrill Lynch.

If the greenshoe option is exercised the market float will be 28.8 pct.
The retail offer will run from Nov 12-16 while bookbuilding for institutional investors will run from Nov 5-16.

Fri-El expects to debut, as a blue chip stock, on the Milan stock market on Nov 21.

In 2006, Fri-El posted sales of 23.1 mln eur while in the first nine months of the current year sales were 28.4 mln.
Asked whether the sales growth rate of around 100 pct in 2006, versus 2005, could continue, Gostner said it is are asonable’ to expect this trend will continue.

Gostner said the company will not offer a dividend in the short term because it will focus on investment and growth.

stephen.jewkes@thomson.com

sj/wj

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Google unveils Android mobile phone platform, formation of Open Handset Alliance

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NEW YORK (Thomson Financial) – Google Inc. Monday said it plans to discuss its Android platform for mobile devices in a conference call at 12 p.m. ET. The announcement is confirmation of the company’s long-anticipated plans to enter the mobile phone area.

In a joint statement with other member, Google also disclosed the formation of the Open Handset Alliance, which it said is comprised of more than 30 technology and mobile industry companies including Motorola, Qualcomm, T-Mobile, HTC and others.

The company said the first phones based on the Android platform to be available in the second half of 2008. Android will be available under an open-source license with the Open Handset Alliance targeting next week for the release of an early access software development kit for developers to begin creating applications for the Android platform.

‘Thirty-four companies have formed the Open Handset Alliance, which aims to develop technologies that will significantly lower the cost of developing and distributing mobile devices and services,’ read a statement issued by Google and other members of the alliance.

‘The Android platform is the first step in this direction — a fully integrated mobile ‘software stack’ that consists of an operating system, middleware, user-friendly interface and applications,’ the statement continued.
Google shares were up 1.7% to $723.01 in midday trades. The session high of $726 represents a new all-time peak once again for the company, a bounce well above last week’s top at $706.07.

Michael Baron

mb

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Fed pumps $41B into US financial system

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WASHINGTON (AP) – The Federal Reserve pumped $41 billion into the U.S. financial system Thursday, the largest cash infusion since September 2001, to help companies get through a credit crunch.

The action comes one day after Fed Chairman Ben Bernanke and all but one of his central bank colleagues voted to slice a key interest rate for the second time in six weeks to protect the economy from the ill effects of collapse in the housing market, aggravated by the credit troubles.
The cash injection also came as Wall Street took a nosedive Thursday. The Dow Jones industrials were down more than 260 points in afternoon trading.
The Fed on Wednesday ordered its key rate, called the federal funds rate, to be lowered by one-quarter percentage point to 4.50 percent. That followed up on a bolder, half-percentage point cut in September. Those two rate reductions might be sufficient to help the economy make its way safely through trouble spots, Fed policymakers indicated.
The funds rate affects many other interest rates charged to millions of individuals and businesses and is the Fed’s most potent tool for influencing economic activity.
The Federal Reserve Bank of New York, which carries out the central bank’s open market operations, moved Thursday to inject $41 billion in temporary reserves into the U.S financial system. It came as part of ongoing efforts designed to ensure that the markets — which have suffered through a period of turbulence over the last few months — function smoothly. The cash infusion came in three separate operations.
A New York Fed spokesman said it was the largest single day of operations since $50.35 billion was pumped into the system on Sept. 19, 2001, following the terror strikes on New York and Washington. He declined further comment.
Fed policymakers at their meeting on Wednesday noted that the ‘strains from financial markets have eased somewhat on balance.’ Still many Fed officials in the last week have described the state of financial markets as fragile. Bernanke and other Fed officials have said it will take time for the markets to fully recover from the credit crisis.
Since August, the Fed has been pumping cash into the financial system to help ease strains from the credit crunch. It also has cut its lending rate to banks — a third such cut came on Wednesday. The Fed also has ordered two reductions to its most important interest rate, the funds rate, to help the situation.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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