ABC Money

Mitsubishi Heavy receives orders for wind turbines in US

News

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30 May 2007

TOKYO (XFN-ASIA) – Mitsubishi Heavy Industries Ltd said it received in the US orders for wind turbine power generation systems which will have combined capacity of 1,363.4 megawatts, nearly equal the size of Japan’s existing total wind power generation capacity.

A spokesman for the engineering firm declined to reveal the value of the orders but said the market price for wind turbine power generators of that size is estimated at between 1.36 bln and 1.64 bln usd.

Mitsubishi Heavy said it secured orders for 411 units of 2.4-megawatt wind turbines and for 377 units of one-megawatt wind turbines from a total of five major US wind power generation developers.

The wind turbines will be delivered starting later this year until 2009, the company said.

Amid strong demand for wind turbines in the US and other parts of the world, Mitsubishi Heavy said it

is currently in the process of expanding its wind turbine production capacity to 1,200 megawatts a year by March 2009 and plans to boost capacity further in the future.

(1 usd = 121.50 yen)

yumiko.nishitani@xfn.com

yn/mas

Stockholm shares close flat as Husqvarna, AstraZeneca offset weakness UPDATE

News

Sam Allcock

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29 May 2007

0

STOCKHOLM (Thomson Financial) – The Stockholm index closed flat as gains for Husqvarna and AstraZeneca helped offset weakness elsewhere, amid caution ahead of Friday’s key US jobs data, brokers said.

The OMX Stockholm index closed down 0.18 pct at 416.57, while the OMX Stockholm 30 closed down 0.32 pct at 1,271.01.

Husqvarna sharply outperformed the market closing up 2.17 pct at 106.00 skr on continued positive sentiment following yesterday’s news that Investor AB has bought 3.7 mln A-shares in the company, hiking its share of the voting rights to 20.03 pct from 17.27 pct.

AstraZeneca also had a good session, closing up 0.96 pct to 368 after shares in the Anglo-Swedish pharmaceutical company were upgraded to ‘overweight’ from ‘neutral’ at HSBC, with the broker forecasting the shares will rise up to 10 pct ahead of its earnings report due in July.

Ericsson B closed unchanged at 26.35 skr, and Nokia up 0.27 pct at 182.75.

Ericsson is reviewing its tie-up with China’s ZTE Corp prior to the launch of TD-SCDMA wireless services, the South China Morning Post reported.

Ericsson is ZTE’s partner in developing technology compliant with the Chinese standard for 3G mobile phones. TD-SCDMA is expected to compete with Europe’s WCDMA and US-developed CDMA 2000 with the launch of third-generation mobile services.

The rest of the market lacked direction as concerns over record highs ahead of the summer were countered by continued positive news flow and increased international merger and acquisition activity.

OMX closed down 0.93 pct at 213 on profit taking following yesterday’s 8 pct gains, and after Carnegie said it doubts a bidding war will break out over the company.

SAS closed up 1.29 pct at 156.50. SAS Sweden said the strike by its cabin crew which started last Friday, is now over and its planes will fly as normal from Wednesday.

The Swedish cabin crews will get a 10.3 pct pay raise over 38 months, SAS said.

Among other shares heavily traded, Nordea closed down 0.44 pct at 114.10, Alfa Laval up 1.88 pct at 434.50, Scania B down 0.59 pct at 168.50, Hennes & Mauritz B down 1.37 pct at 433, and SKF B down 1.20 pct at 144.50.

TF.TFN-EuropeStockholm@thomson.com
sjr/cml/sjr/cml

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Shanghai backtracks on reports of maglev train project suspension

News

Sam Allcock

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29 May 2007

0

SHANGHAI (XFN-ASIA) – Shanghai officials have backtracked on state-media reports that plans to build a high-speed magnetic levitation train linking Shanghai and the eastern city of Hangzhou have been suspended due to health concerns.

Zhang Qing, a spokeswoman of the Shanghai government, said there has been no notice of any suspension of the project.
Separately, an official of the Shanghai Maglev Company, which operates the current maglev line in city, said he was also unaware of any project suspension.

On Sunday, the state-owned Xinhua news agency, citing unnamed Shanghai officials, reported that the 170 km project has been suspended following petitions from residents living along the proposed route worried about possible health problems from the maglev’s high powered magnets.
The maglev uses powerful magnets to drive trains at speeds of up to 430 km per hour.

Xinhua said feasibility is also in question as more than 40 bln yuan invested in the technology may not be recovered.
The project was expected to be completed in time for Shanghai’s hosting of the World Expo in 2010, according to Xinhua.

A spokeswoman for Transrapid International, a consortium between Germany’s Siemens AG and ThyssenKrupp AG that builds the maglev trains, could also not confirm the news report.

In February, news reports said the consortium would likely be awarded a 1.2 bln usd contract to expand by 30 km the maglev line that now runs to the Shanghai Pudong International Airport from the outskirts of the city.
ThyssenKrupp said in a written statement last month that the planning process for a Shanghai extension was have ry advanced.’

The news of a possible suspension came during German President Horst Koehler’s visit to Shanghai.

The plan may also not have central government support.

‘Maglev is inappropriate anywhere in China due to inflexibility,’ said Li Hong, a high-ranking official with Institute of Transport and Communication under the National Development and Reform Commission, the state planning agency.

Li said that the super-high-speed maglev train will consume much more energy than conventional railways, and will result in ‘magnetic pollution.’

China is also developing its own maglev trains, state media have previously reported.

Citing a work blueprint by China’s Ministry of Science and Technology, Xinhua said a 30-km test railway for the maglev train will be built before 2010.

Finmeccanica to win govt order for 14 trainer aircraft – junior minister UPDATE

News

Sam Allcock

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28 May 2007

0

MILAN (Thomson Financial) – Italy’s armed forces intend to acquire 14 M-346 advanced fighter trainer aircraft from Finmeccanica SpA unit Alenia Aermacchi, said defence under-secretary Lorenzo Forcieri.

Speaking in the margins of a conference, Forcieri said: ‘The defence ministry has written in the last few days to the economic development minister about the request for 14 planes.’

An Aermacchi official said the Italian air force recently carried out tests on the M-346, adding he believed the outcome was positive.

The M-346 two-engine jet trainer exists in the form of two prototypes, while production of the first production model has started, he said.

The range of configurations for the plane make it difficult to give a price, he said, noting previous basic jet trainer planes cost 10 mln eur.

nigel.tutt@thomson.com

nt/lam

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Oil rig count rises by 16

News

Sam Allcock

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25 May 2007

0

HOUSTON (AP) – The number of rigs actively exploring for oil and natural gas in the United States increased by 16 this week to 1,760.
Of the rigs running nationwide, 1,471 were exploring for natural gas and 287 for oil, Houston-based Baker Hughes Inc. reported Friday. Two were listed as miscellaneous.

A year ago, the rig count stood at 1,649.

Of the major oil- and gas-producing states, Oklahoma gained 12 rigs, Texas gained five, Wyoming gained four and Alaska and New Mexico each gained one. Colorado lost nine rigs and Louisiana lost one. California was unchanged.

Baker Hughes has tracked rig counts since 1944. The tally peaked at 4,530 in 1981, during the height of the oil boom. The industry posted several record lows in 1999, bottoming out at 488.

National Bank of Greece CEO sees more local M&A; developments in banking system

Finance

ABC Staff

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25 May 2007

0

ATHENS (Thomson Financial) – National Bank of Greece CEO, Takis Arapoglou, said that as the Greek economy matures we should expect more mergers and acquisitions with the aim of achieving economies of scale and exploiting synergies.
Speaking at National’s AGM, the CEO said that in the local banking system we can expect the emergence of even larger banks which will become even more competitive on a European level.
‘Overseas three large banks control 80 pct of the banking system, I expect similar developments here if we don’t become an exception to the rule,’ Arapoglou added.
Source: Euro2day.gr NewsWire
nick.skrekas@thomson.com
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Danone denies JV with India’s Britannia; to proceed with solo plans – report

News

Sam Allcock

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25 May 2007

0

MUMBAI (Thomson Financial) – Food producer Groupe Danone has defended its investment in an Indian food ingredient intermediaries manufacturer by denying it has joint venture status with another Indian company in a similar market, something that would make the investment illegal under Indian regulations, the Economic Times reported.

Danone told the Indian government that it is not a joint venture partner with Britannia Industries and its 25 pct shareholding in the Indian snack food maker is through a joint venture with the Wadia Group in the UK, and not in India.

The clarification was in response to a set of government queries, prompted by a complaint from Wadia’s chairman Nusli Wadia, who told the ministry of commerce and industry that Group Danone’s investment in Bangalore-based Avesthagen was in violation of the government’s Press Note 1, 2005.

In a letter dated May 10, the French food giant clarified that it does not have a formal technology transfer or trademark agreement with the Indian company, supporting its argument that it does not need any permission either from Britannia or the Wadias for making investments in India.

The note requires a foreign company to obtain the consent of its Indian joint venture partner before pursuing an independent business in a similar area, and also applies to a joint venture based purely on technical collaboration.

Danone said its 25 pct holding in Britannia is only indirect in nature and does not apply to Press Note 1, and informed the government that it was going ahead with its independent plans for India.

TFN.newsdesk@thomson.com

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Jones Soda chases down Qwest Field deal

News

Sam Allcock

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24 May 2007

0

SEATTLE (AP) – Cola, diet cola or … grass-stain flavored soda?

That’s a choice Seattle Seahawks fans might be making at home-field concession stands starting in August, thanks to a five-year deal announced Wednesday between Qwest Field and local soft-drink maker Jones Soda Co.

Jones Soda, with annual revenue of $39 million in 2006, unseated The Coca-Cola Co., which sold $24 billion in goods last year, as the sole provider of nonalcoholic beverages at the NFL team’s stadium.

At Qwest Field, fans will be able to buy Jones Soda as a fountain drink, in cans and in plastic bottles the company is developing for the venue.

Jones Soda is known for kooky limited-edition flavors (turkey and gravy — and antacid — from a holiday 2006 collection), bright colors (blue bubble gum) and labels with striking photographs, some submitted by consumers. The company’s soda line started with six flavors in 1996.

Fans will still be able to order a cola at Qwest Field, said Jones Soda’s chief executive officer, Peter van Stolk, but unlike Coke, it will be sweetened with sugar instead of high-fructose corn syrup.

The CEO said he’s also playing around with ideas — including ‘grass stain’ — for a signature Seahawks flavor. (Actually, Qwest Field is covered by FieldTurf, an artificial surface.)

As part of the deal, Jones Soda will be an official sponsor of the Seahawks; van Stolk said the company plans to print photos of team members and fans on plastic bottles sold at the stadium and on glass bottles sold at stores. The ability to customize bottles with photos was a key selling point during negotiations with the stadium and the team, van Stolk said.

‘We want to give the fans a really cool experience. Jones Soda is not Coca-Cola, and we will do things differently,’ van Stolk said in an interview. ‘The Seattle Seahawks are our football team. That’s reality. I care about if they go to the playoffs. I care about what the score is.’

The agreement is set to expire Feb. 28, 2012, and Jones Soda has first right to renew or extend the deal, according to a Securities and Exchange Commission filing.

Qwest Field and the Seahawks did not return calls seeking comment.

Shares of the soda company jumped $1.65, or 8.3 percent, to $21.64 on Wednesday.

Forex – Dollar firm after Lacker comments

News

Sam Allcock

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23 May 2007

0

ONDON (Thomson Financial) – The dollar remained relatively firm against its major rivals as the market scaled back its expectations for an imminent interest rate cut from the US Federal Reserve.

Those expectations were diminished overnight when Jeffrey Lacker, a non-voting Fed official, said upside risks to inflation remain and that he is comfortable with interest rates at 5.25 pct at the moment.

‘US bond yields have moved higher inspired by hawkish comments by Lacker,’ said Ian Stannard, currency strategist at BNP Paribas.

With no major US economic data until tomorrow’s durable goods news, analysts said the dollar is likely to retain a solid tone through the day.

‘Although we don’t see a sustainable dollar rally for now, the dollar may be able to defend its position today,’ said Gavin Friend, currency strategist at Commerzbank Corporates & Markets.

Elsewhere, attention will focus on the US/China talks in Washington and what tone US Treasury Secretary Hank Paulson takes with regard to last week’s recent move to widen the yuan’s fluctuation band against the dollar.

Any comments from the Chinese on the pace of yuan reform will be crucial and whether they manage to stave off rising protectionist sentiment in the US.

Before then, the pound is likely to be in focus with the publication of the minutes to the last rate-setting meeting at the Bank of England.

The vote is expected to have been 8-1 in favour of the quarter point rise in the base rate to 5.50 pct, with David Blanchflower voting to keep rates unchanged.

However, sterling markets will be interested to see if there was much or any discussion on the possibility of raising rates 50 basis points to 5.75 pct, and whether any of the nine members voted for this.

The quarterly Inflation Report, released since the rate rise, indicated that interest rates are likely to have to reach 5.75 pct if inflation is to be brought down to the bank’s 2.0 pct target.

London 0822 BST Sydney 1:56 pm (0356 GMT)

US dollar

yen 121.71 up from 121.69

sfr 1.2280 down from 1.2294

Euro

usd 1.3445 down from 1.3454

yen 163.65 down from 163.73

sfr 1.6511 down from 1.6541

stg 0.6808 down from 0.6813

Sterling

usd 1.9753 up from 1.9745

yen 240.34 up from 240.30

sfr 2.4245 down from 2.4276

Australian dollar

usd 0.8213 up from 0.8207

stg 0.4157 up from 0.4152

yen 99.95 up from 99.850

pan.pylas@thomson.com

pp/lam

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Australian shares close lower on profit taking – UPDATE

News

Sam Allcock

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22 May 2007

0

SYDNEY (XFN-ASIA) – Share prices ended down as investors locked in profits following yesterday’s run into record territory, dealers said.

They said selling was focused on the banks while resource and energy stocks gained after metal and oil prices rose in overnight trading, cushioning the market from a greater retreat.

The S&P;/ASX 200 closed down 30.2 points or 0.47 pct at 6,338.8, falling from yesterday’s record finish of 6,369.0.

The All Ordinaries index lost 22.3 points to close at 6,350.2, also down from its previous record close of 6,372.4 set yesterday.

AWB retreated again after the federal government announced the company would not continue marketing Australian wheat in offshore markets from March 2008. Yesterday, further class action was filed against the AWB in the US alleging violations of anti-trust and racketeering laws.

AWB shares slumped 0.37 aud or 10.00 pct to finish at 3.33 aud.

However, Queensland Cotton Holdings surged after the company received a 149.8 mln aud takeover offer from France’s Louis Dreyfus Commodities, countering a 134 mln aud offer from Singapore-based agricultural products supplier Olam International.

Queensland Cotton shares jumped 0.36 or 7.05 pct to close at 5.47.

AIM Resources soared after reporting positive first drilling results on its Mumbwa copper-gold joint venture with BHP Billiton in Zambia. AIM Resources’ shares surged 0.095 or 45.24 pct to end at 0.135.

A total of 1.96 bln shares worth 5.99 bln aud was traded, with falls outnumbering rises 654 to 606 while 374 stocks were unchanged.

The S&P;/ASX200 June futures contract was up 1.0 point at 6,371.0.

The 10-year bond yield fell 0.0055 to 5.972 pct while 90-day bills were up 0.007 at 6.357 pct.

Aequs Securities head of institutional trading Ric Klusmam said profit-taking set in during afternoon trading.

‘There has been a bit of a sell-off, particularly in the banks, but that’s only after a very strong run,’ Klusman said.

He said overnight rises in oil, gold and base metal prices saw support for the resources sector which meant the market’s overall losses were limited.

‘It was a fairly ordinary day with a few highlights – ABC Learning jumped after its earnings upgrade and Leighton was strong again, hitting another record high,’ Klusman said.

He said merger and acquisition talk continued, with Foster’s again being talked about as a potential target even though the brewing and wine group’s share price fell today.

Klusman said Qantas defied gravity, making further gains even though the airline company’s chairman Margaret Jackson warned yesterday that the share price could fall if hedge funds, which bought the stock during a failed takeover attempt by the Airline Partners Australia consortium, exit the stock.

He said investors were buying on expectations that Qantas could to return up to 2.2 bln aud to investors.

‘They are talking about a capital return but on the other hand, Qantas has a big capex program ahead of it – they are buying a lot of planes,’ Klusman said.

National Australia Bank fell 0.31 to close at 42.78, Commonwealth Bank dropped 0.48 to 54.95, ANZ retreated 0.31 to 29.62 and Westpac shed 0.27 to 26.70.

Macquarie Bank was down 2.30 at 94.70.

QBE lost 0.13 to 32.32, AMP also fell 0.13 to 10.27, IAG shed 0.12 to 6.04 and Suncorp was down 0.16 at 21.68.

News Corp regained 0.13 to 28.98 and its non-voting stock rose 0.19 to 27.04.

Telstra eased 0.05 to 4.80, its T3 receipts were also down 0.05 at 3.34 while SingTel slipped 0.03 to 2.77.

BHP climbed 0.19 to 31.37 and Rio Tinto advanced 0.31 to 92.60.

Alumina added 0.04 to 7.62, Jubilee Mines rose 0.20 to 18.88, Kagara Zinc jumped 0.57 to 6.75 but Zinifex fell 0.10 to 17.60.

Newcrest was up 0.10 at 22.34 but Lihir Gold fell 0.06 to 3.17 and Oxiana eased 0.03 to 3.27.

Paladin advanced 0.49 to 9.25, Summit gained 0.30 to 5.55 and ERA rose 0.32 to 25.06.

Woodside climbed 0.40 to 43.70, Santos rose 0.21 to 12.95, Oil Search added 0.02 to 4.02 and Roc Oil gained 0.05 to 3.53.

James Hardie lost 0.19 to 8.90 while Rinker added 0.04 to 19.36.

Qantas gained 0.05 to 5.32, Virgin Blue rose 0.04 to 2.59 and Air New Zealand added 0.03 to 2.49.

Woolworths dropped 0.21 to 28.50, Coles fell 0.10 to 17.60 and Wesfarmers lost 0.39 to 38.27.

Foster’s retreated 0.08 to 6.34 but Lion Nathan rose 0.09 to 9.17.

CSL climbed 0.21 to 96.14 while Cochlear shed 0.94 to 61.96.

APN added 0.02 to 5.80, PBL was up 0.01 at 20.93 but Seven Network slipped 0.11 to 11.40.

ABC Learning jumped 0.47 or 6.66 pct to 7.53 after an earnings outlook upgrade.

(1 usd = 1.22 aud)

paul.daniel@xfn.com