According to Bloomberg’s Sharon Chen and Novrida Manurung, Indonesian President Susilo Bambang Yudhoyono is under growing pressure to raise fuel prices and curb oil imports as currency risks persist and the window to act narrows ahead of elections in 2014.
The government will probably need to increase subsidized- fuel prices this year, according to economists at Bank of America Corp., Australia & New Zealand Banking Group Ltd., Standard Chartered Plc, PT Bank Danamon Indonesia and Moody’s Analytics. The country limited the use of partially government- funded diesel last week and the trade minister said Yudhoyono will evaluate energy charges in the next few weeks.
The president has avoided raising fuel prices since protests derailed an increase early last year, highlighting the political minefields in a country where riots spurred by soaring living costs helped oust the dictator Suharto in 1998. Subsidies that keep charges below international market rates have bolstered demand for energy imports in the world’s fourth most- populous nation, contributing to a widening current-account gap and a 5.9 percent drop in the rupiah last year.
“This is a dilemma for the president,” said Fauzi Ichsan, a Jakarta-based senior economist at Standard Chartered and a former Finance Ministry analyst. “If the president raises fuel prices, it won’t be good politically, yet without an increase, the current-account deficit will remain high and the rupiah will continue to decline, adding imported inflation.”
Posted by cbasdeo09 on January 29, 2013
URUMQI – China is seeking to diversify channels for energy cooperation as it faces mounting challenges from surging energy demand, geopolitical risks and price volatility, officials and experts said at an international expo in held in west China’s Xinjiang Uygur autonomous region.
The endowment and distribution of China’s resources does not match the current situation of China’s economic development, said Zhang Lei, vice president of the Central Asia Regional Economy Institute under the Xinjiang University of Finance and Economics, at the Expert‘s Group Meeting on Energy Efficiency in Northeast and Central Asia.
The group meeting was initiated by the Economic and Social Commission for Asia and the Pacific (ESCAP) of the United Nations as part of a series of activities held at the ongoing second China-Eurasia Expo in Urumqi, capital of Xinjiang.
“Although the country‘s western regions have seen increasing energy production capacities, a weakened ability to guarantee domestic energy security is still prominent,” Zhang said.
The International Energy Agency (IEA) has forecast that 65 percent of China’s crude oil consumption will depend on imports by 2015. It will be difficult for China to bypass its heavy dependence on oil imports.
Posted by byu2012 on September 5, 2012
With several major mining projects being put on ice this week, talk has quickly turned to whether the Australian mining boom is about to go bust.
Jumping on comments by Federal Resources Minister Martin Ferguson that “the resource boom is over”, the federal opposition has blamed the government’s mining and carbon taxes for BHP’s recent decision to shelve its $30 billion Olympic Dam extension project.
However, developments in the all-important iron ore industry suggest the drivers of the boom-and possible impending bust-lie not in Australia, but China.
Recent growth in the Australian iron ore sector has been driven by the rapid industrialisation of the Chinese economy.
Posted by gngn0 on August 27, 2012
G. Bin Zhao, Executive Editor, CHINA’S ECONOMY & POLICY and Managing Director, Gateway International Group Limited, says today at South China Morning Post, unlike CNOOC’s failed bid in 2005 to buy Unocal, its proposal to acquire Nexen has considerably more chance of success, and, on the whole, a deal would benefit both China and Canada.
China National Offshore Oil Corp announced last month that it was proposing to buy Canada-based Nexen in a US$15billion deal. This caused quite a stir in Canada, with the domestic mainstream media reporting it widely. By contrast, the response of the Chinese media and public appears rather muted.
Posted by Admin on August 3, 2012
WSJ-DANIEL INMAN Reported that: Asian markets fell Wednesday on concerns over Europe’s debt crisis and as disappointing Apple AAPL +1.71% earnings in the U.S. pushed down technology manufacturers in Asia.
Sentiment was damaged by news of uninspiring corporate earnings in the U.S. overnight. At the forefront was Apple, which delivered disappointing numbers after the session in New York finished.
Below-expectation earnings from one of the world’s most famous consumer-electronics companies had knock-on effects on electronics companies in Asia, which was felt hardest in technology-heavy markets such as South Korea and Japan.
The Nikkei ended the day 1.4% down at 8365.90, putting the market back into negative territory for the year, as Japan was hindered by a stronger currency and a broad selloff in technology companies following the Apple results. The Japanese benchmark sank to a seven-week low, with bellwether electronics companies Sony SNE +4.24% andPanasonic 6752.TO +5.66% slumping 5.2% and 5.5% respectively.
Posted by Admin on July 27, 2012
Bloomberg News-Yoshiaki Nohara reported that Asian stocks rose, with the regional benchmark index headed for the biggest gain in almost nine months, after European Central Bank President Mario Draghi said policy makers will do whatever is needed to preserve the euro.
HSBC Holdings Plc (5), Europe’s biggest lender, rose 2.6 percent in Hong Kong. LG Display Co., which makes digital products, gained 7.3 percent in Seoul on expectations earnings will improve. China Zhongwang Holdings Ltd., which makes aluminum used in rail carriages and airplanes, jumped 5.9 percent in Hong Kong after saying profit will increase. Hitachi Chemical Co., a Japanese manufacturer of chemical products, surged 8.9 percent after raising its profit forecast.
The MSCI Asia Pacific Index rose 2.1 percent to 116.16 as of 7:45 p.m. in Tokyo with about six stocks advancing for each that fell and paring its loss this week to 0.4 percent. The measure is headed for the biggest daily increase since Dec. 1.
Posted by Admin on July 27, 2012
Picture by Phillip Gostelow
China recently has reported that its annual gross domestic product came in at 7.6 percent in the second quarter. However, experts, McDonald, once vice-president of Lehman Brother, doubted its validity, and and made a stark comparison to LIBOR.
A fake Libor rate, the scandal involving global benchmark interest rates that has raised the level of distrust in major banks and markets, is nothing compared to the damage that could be done if China’s true economic growth figures were revealed, according to Larry McDonald’s newsletter.
“Is Chinese GDP the new Libor?” asked McDonald, author of “A Colossal Failure of Common Sense: The Inside Story of the Collapse of Lehman Brothers,” in a much talked about note to clients last week. “More and more investors are starting to question the Chinese math on GDP.”
Annual gross domestic product came in at 7.6 percent in the second quarter, according to China’s government on July 13th. The report was better than investors expected, easing concern of a dramatic slowdown for the world’s second-biggest economy and sparking a bid in risk assets like stocks that has lasted for two weeks.
But slowing imports and industrial production, as well as harder-to-fudge electricity usage data, points to much slower growth, according to McDonald and other investors. Barclays believes the number should have been more like 7.15 percent.
Posted by Admin on July 23, 2012
China has made its first tentative investment in Canada during 2005, when it purchased 16.7 percent share of the then-private oil sand developer MEG Energy with 120 million dollars. Today, reported by the Reutors, it is making a bigger move.
China’s top offshore oil producer CNOOC has agreed to buy Canada’s Nexen for about $15.1 billion in one of the most ambitious acquisitions by a Chinese company to date that may test Ottawa’s tolerance of foreign takeovers.
State-controlled CNOOC said it would pay $27.50 per common share, representing a 61 percent premium to Nexen’s closing price in New York on Friday.
“The aggregate value of the consideration of the proposed acquisition is approximately $15.1 billion (approximately HK$117.2 billion), and is to be payable in cash,” CNOOC said in a statement filed on the Hong Kong stock exchange.
Posted by Admin on July 23, 2012
India has 1.2 billion people, but it never have enough population that drinks coke. Recently, Coca-Cola announced its plan to pour 5 billion into India. Reported by NIKHIL GULATI And RUMMAN AHMED.
Coca-Cola Co.’s KO +0.84% chief executive Muhtar Kent said the company and its bottling partners will invest $5 billion in India by 2020 as it looks to raise its presence in one of its fastest-growing emerging markets.
“We think there’s potential here,” Mr. Kent said Tuesday during a visit to India, adding that the company wants “to stay ahead of the curve” in the country.
India, a country of 1.2 billion people, remains one of the last big frontiers for the Atlanta-based beverage giant. As Mr. Kent pointed out, Indians on average consume only 12 eight-ounce bottles of Coke a year compared with 230 in Brazil and 92 bottles globally.
The investment outlay of $5 billion marks an increase on plans announced late last year to invest $2 billion in India over the next five years. Coca-Cola has put $2 billion into its Indian operations in the past
Posted by Admin on July 13, 2012