Friday, May 1, 2015

Wilmar said to take record sugar delivery on ICE

Wilmar said to take record sugar delivery on ICE

[NEW YORK] Wilmar International took 1.9 million metric tons of sugar, the biggest delivery against expiring futures in New York on record.
The Singapore-based company accepted 37,611 contracts, each representing 112,000 pounds (50,800 KG), according to two people familiar with the matter who asked not to be named because information is private. The sweetener came from ports in Latin America, with the majority coming from Brazil, the world's top producer and exporter, according to data from ICE Futures US published Friday.
Sugar prices have tumbled about 28 per cent in the past 12 months amid a global glut. Bumper harvests in India and Thailand added to supplies, while declines for Brazil's currency encouraged growers to increase shipments that fetch dollars in return.
"It's a very large delivery even at low prices," Jack Scoville, a vice president at Price Futures Group in Chicago, said in a telephone interview. "That's not an indication there's demand in the cash market, by any stretch of imagination." ED&F Man delivered 7,954 of the raw-sugar contracts, with Louis Dreyfus handling 7,869 contracts, the companies said. Brokers acting on behalf of clients include Jefferies Bache LLC and ADM Investor Services were listed as sellers on the ICE notice that was posted on its website. Iris Chan, a spokeswoman for Wilmar in Singapore, declined to comment on the company's sugar delivery in an April 30 e-mail.
World production will top demand by 620,000 tons in the 12 months ending in September, the International Sugar Organization said in February. The industry group raised its surplus outlook by 31 per cent from a November estimate.
BLOOMBERG

Petronas offers Canada community almost US$1 billion to back LNG

Petronas offers Canada community almost US$1 billion to back LNG

[VANCOUVER] The Petroliam Nasional Bhd-led group planning a natural gas export terminal on Canada's Pacific Coast is offering one aboriginal community C$1.15 billion (US$950 million) over 40 years to approve the project.
Pacific NorthWest LNG, led by the Malaysian state-owned energy producer, is offering the payments to the Lax Kw'alaams First Nation so it can build the unit on the community's traditional lands at the port of Prince Rupert in northern British Columbia, the native group said on its website. The deal also includes incentives from the provincial government and gas pipeline developers.
"It's the going rate," Art Sterritt, executive director of Coastal First Nations, an alliance of aboriginal communities on British Columbia's northern coast, said Friday by phone from Prince Rupert. "Certainly, other communities that have LNG terminals in their territory are seeing proposals of this size."
The Prince Rupert facility is part of a C$36 billion plan by Petronas, as the company is known, to ship gas reserves from Canada's westernmost province by tanker to growing energy markets in Asia. Liquefied natural gas, or LNG, is obtained by chilling the fossil fuel at ultra-low temperatures to maximise the amount that can be loaded into vessels.
The 3,600-person Lax Kw'alaams community will vote on the incentive package this month, according to the Globe and Mail, which first reported the plan.
"This may sound like a lot of money, but when you spread it over 40 years and you take into account the cumulative impacts on your way of life, it's a reasonable offer," Mr Sterritt said. "It really allows them to adjust to what's about to happen."
Pacific NorthWest is one of 19 LNG developments proposed in British Columbia. Petronas, which is awaiting environmental approval from the Canadian government, has yet to make a final decision to proceed.
"This offer represents a multi-generational opportunity to the Lax Kw'alaams First Nation in the form of careers, procurement and small-business opportunities, skills training and education," Spencer Sproule, a Vancouver-based spokesman for Pacific NorthWest LNG, said today in an e-mailed statement.
Progress Energy, Petronas's Canadian gas exploration unit, has proven cumulative reserves of 15 trillion cubic feet of gas, Mr Sproule said.
A call to the Lax Kw'alaams band office wasn't immediately returned.
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World's biggest oil company names new CEO in Saudi reshuffle

World's biggest oil company names new CEO in Saudi reshuffle

[KUWAIT] Saudi Arabia's state-run oil company made wide-ranging leadership changes, including a new role for the king's son.
Saudi Aramco, which has the ability to pump 12 million barrels of crude a day, named Amin Nasser as interim chief executive officer, according to a company statement. Khalid al- Falih, who was president and CEO of Aramco prior to Nasser, replaced Oil Minister Ali al-Naimi as chairman. The producer earlier announced the formation of a new supreme board to oversee its affairs, led by Deputy Crown Prince Mohammed Bin Salman, the king's son and second in line to the throne.
Saudi Arabia is pumping near-record amounts of crude, leading the Organization of Petroleum Exporting Countries in a policy of maintaining output to encourage producers outside the group to tackle an oversupply. When King Abdullah, the previous ruler, died at the end of January, oil analysts anticipated few changes to the nation's production and export policies.
"There will be greater coordination at a macro level," John Sfakianakis, the Riyadh-based director of the Middle East at investment manager Ashmore Group Plc, said by phone from Riyadh. "Changes at Saudi Aramco are part and parcel of the wider reorganization of the way the Saudi government functions."
Mr Nasser, senior vice president for upstream until the appointment, has held a range of roles at Saudi Aramco, according to the company's website. He became chief petroleum engineer in April 2004 and executive director of Petroleum Engineering and Development in May 2005.
Mr Falih was appointed Saudi Arabia's minister of health on April 28, according to the company's website.
The new 10-member supreme board will be led by Mr bin Salman, who's also chairman of Saudi Arabia's Council of Economic Affairs and Development, Saudi Aramco said in a statement on its website on Friday. The Supreme Petroleum Council, which previously set oil policy and was led by the late king, will be dissolved, according to the statement.
"The vision and mission of Aramco is now becoming bigger with this Supreme council," Mohammed al-Ramady, professor of economics at King Fahd University for Petroleum and Minerals in Dhahran, Saudi Arabia, said by phone. "The establishment of Aramco's supreme council completes the economic restructuring and centralization of authority and oversight of the key critical Saudi pillars of the economy."
BLOOMBERG

US: Stocks rebound from selloff as biotechs, chipmakers rally

US: Stocks rebound from selloff as biotechs, chipmakers rally

[NEW YORK] US stocks rose, with the Standard & Poor's 500 Index paring a weekly loss, as Gilead Sciences Inc and Expedia Inc rallied after Thursday's selloff in biotechnology and small-cap shares.
The Nasdaq Biotechnology Index rebounded 2.9 per cent from a 3.1 per cent drop yesterday. Gilead added 4.5 per cent as first- quarter profit exceeded projections. Expedia Inc climbed 7.9 per cent, amid quarterly revenue that exceeded estimates, and paced consumer shares as they erased their Thursday decline. LinkedIn Corp tumbled 19 per cent after trimming its annual sales forecast.
The S&P 500 gained 1.1 per cent to 2,108.29 at 4 pm in New York, after falling 1 per cent Thursday. The index jumped above its average price for the past 50 days. The Russell 2000 rose 0.7 per cent after tumbling 2.2 per cent yesterday. The Dow Jones Industrial Average climbed 183.54 points, or 1 per cent, to 18,024.06 and nearly wiped out yesterday's retreat.
"This week felt like an unwinding of a lot of big trading positions that had been on for months and that had been extremely successful," said David Heidel, a regional investment director for the private client reserve of US Bank, which oversees about US$128 billion of assets. "This is a rebound from the tough days we had earlier this week. People are taking a look at potential bargains." The benchmark index dropped 0.4 per cent this week as the Federal Reserve left open the possibility of raising rates in 2015 even after data showed the economy barely grew in the first quarter.
Wednesday's growth report was among a string of weak numbers stoking concern about the strength of the recovery, as the Fed looks set for its first rate increase since 2006.
A report today showed manufacturing in April held at the weakest pace in almost two years, while a separate report said consumer confidence increased in April to the second-highest level in more than eight years as Americans grew more upbeat about their financial prospects.
Analysts have tempered their predictions for a corporate earnings slump, now projecting a first-quarter drop of 0.4 per cent, compared with April 17 calls for a 4.3 per cent decline.
The Russell 2000 Index lost 2.6 per cent last month as biotech and social-media companies, viewed by some investors as being in bubble territory, led a late April retreat in equities.
While the S&P 500 returned to an all-time high in April and the Nasdaq Composite Index jumped to its first record since the dot-com bust, this week's declines have pulled both indexes away from those levels. The S&P 500 is still one of the biggest laggards among developed-market indexes this year.
"Markets are becoming increasingly tactical and taking profits," said Michael Ingram, a market strategist at BGC Brokers LP in London. "The very basic issue is that markets want strong growth and zero rates forever. That's simply not going to happen." Amid the volatility, US equities remain stuck within the tightest range of prices in almost a decade: roughly 125 points in the S&P 500. The peak-to-trough move of 6.3 per cent is the smallest at this point of any year since 2006.
The Chicago Board Options Exchange Volatility Index dropped 13 per cent to 12.70 after an 8.7 per cent jump yesterday. For the gauge known as the VIX, it's the biggest retreat since January. About 6.4 billion shares changed hands on US exchanges Friday, 3 per cent below the three month average.
Nine of the S&P 500's 10 main groups rose Friday, with raw- material, technology and consumer discretionary companies rallying the most. Alcoa Inc. jumped 5.4 per cent, its biggest gain since October, and Eastman Chemical Co. added 3.3 per cent near a five-month high to lead materials. Alcoa was upgraded to buy from hold at Standpoint Research.
Expedia led gains in consumer shares along with Yum! Brands Inc and Leggett & Platt Inc. Yum surged 6.9 per cent, the biggest gain in more than a year, after after Dan Loeb's Third Point disclosed a "significant stake" in the restaurant operator, saying its business in China will recover from recent food-safety issues.
Gilead, Biogen Inc. and Regeneron Pharmaceuticals Inc. paced health-care's advance, with each rising at least 3 per cent. The Nasdaq Biotech index added 2.9 per cent, snapping a five-day losing streak during which the gauge dropped 9 per cent.
A Bloomberg gauge of US airlines climbed 3 per cent. SkyWest Inc. soared 18 per cent after better-than-estimated first-quarter results. JetBlue Airways Corp. and Southwest Airlines Co. rose more than 5 per cent.
Altera Corp. rallied 9.8 per cent after Reuters reported that the company could face a hostile takeover bid by Intel Corp Intel added 2.7 per cent and Micron Technology Inc. advanced 3.1 per cent. The Philadelphia Stock Exchange Semiconductor Index increased 2.8 per cent, its best gain since March 27 when Intel's initial interest in Altera was first reported.
Apple Inc rose 3 per cent, ending a three-day losing stretch in which shares fell 5.7 per cent.
LinkedIn lost 19 per cent, the sharpest drop since it went public almost four years ago. The professional-networking website delivered quarterly revenue that missed analysts' estimates for the first time, shaking confidence in a historically stable business plan. The company also trimmed its annual revenue forecast.
First Solar Inc, the biggest US solar-panel maker, slipped 3.9 per cent to its lowest level in two months. Quarterly revenue missed estimates, and the company reported its first loss in three years as it prepares to create a new company to operate some of its completed power plants.
Pump and valve maker Flowserve Corp dropped 3.2 per cent, the most in three months, after first-quarter profit and revenue missed estimates. The company cited broad-based industrial spending declines, notably in oil and gas markets, and the impact of a strengthening dollar.
Chevron Corp fell 1.8 per cent, the most among three Dow components that declined, after reporting better-than-estimated quarterly earnings. Profit from its refinery business doubled, while earnings from its oil-and gas-producing business posted the worst performance since the second quarter of 2009.
BLOOMBERG

Nepal earthquake: Thousands still missing

Nepal earthquake: Thousands still missing

[KATHMANDU] Thousands of people were still missing in Nepal on Friday as food and help began to trickle through to those stranded in remote areas after last week's earthquake which killed 6,250.
Up to 1,000 Europeans are still unaccounted for, mostly around popular trekking routes, the head of the European Union (EU) delegation in Nepal said. "We don't know where they are, or they could be," Ambassador Rensje Teerink told reporters. Officials said it was hard to trace the missing because many backpackers do not register with their embassies. "It does not mean that they are buried. They could have left the country without telling anyone before the earthquake struck," Mr Teerink said Reuters.
Nepal's home ministry said it had not been informed that the number of EU citizens missing after Saturday's earthquake could be as high as 1,000. "If that is the case then why are the embassies not informing us? Why have they not contacted the Nepal government?" home ministry spokesman Laxmi Prasad Dhakal told Reuters.
The number of people unaccounted for from France, Italy, Spain and the Netherlands is 371 according to checks Reuters made with their governments, while all Irish citizens, Croatians and Romanians have been traced. Other European nations are yet to provide an updated figure on how many of their citizens are unaccounted for.
Bodies are still being pulled from the debris of ruined buildings, while rescue workers have not been able to reach some remote areas.
The government put the number of injured at more than 14,350.
In the capital Kathmandu, many unclaimed bodies were being quickly cremated because of the need to avert disease and reduce the stench of corpses in areas where buildings had collapsed.
Many of the dead could be migrant workers from neighbouring India, local officials said. "Morgues are full beyond capacity and we have been given instructions to incinerate bodies immediately after they are pulled out," said Raman Lal, an Indian paramilitary force official working in coordination with Nepali forces.
Aid was slowly reaching remote towns and villages nestled in the Himalayan mountains and foothills of the impoverished nation. But government officials said efforts to step up the pace of delivery were frustrated by a shortage of supply trucks and drivers, many of whom had returned to their villages to help their families. "Our granaries are full and we have ample food stock, but we are not able to transport supplies at a faster pace," said Shrimani Raj Khanal, a manager at the Nepal Food Corp.
Army helicopters have air-dropped instant noodles and biscuits to remote communities but people need rice and other ingredients to cook a proper meal, he said.
Many Nepalis have been sleeping in the open since the 7.8 magnitude quake, with survivors afraid to return to their homes because of powerful aftershocks. According to the United Nations, 600,000 houses have been destroyed or damaged.
Information Minister Minendra Rijal said the government would provide US$1,000 in immediate assistance to the families of those killed, as well as US$400 for cremation or burial.
The UN said 8 million of Nepal's 28 million people were affected, with at least 2 million needing tents, water, food and medicines over the next three months.
Finance Minister Ram Sharan Mahat said Nepal would need at least US$2 billion to rebuild homes, hospitals, government offices and historic buildings and appealed for international backing. "This is just an initial estimate and it will take time to assess the extent of damage and calculate the cost of rebuilding," Mr Mahat told Reuters.
Prime Minister Sushil Koirala told Reuters earlier this week the death toll from the quake could reach 10,000.
That would surpass the 8,500 who died in a 1934 earthquake, the last disaster on this scale to hit the nation sandwiched between India and China.
Home ministry spokesman Dhakal said that though the 1934 quake was more powerful, fewer people lived in the Kathmandu valley then. "The scale of reconstruction will be unprecedented," Mr Dhakal said.
While international aid has poured in, some Nepalis have accused the government of being too slow to distribute it. "There have been cases where villages have pelted stones on trucks carrying aid and food supplies. They must have been really hungry and angry to do so," said Purna Shanker, who works at the government's commodity trading office.
In Sundarkhula, a village close to the quake's epicentre west of Kathmandu, villagers said they were searching their destroyed homes for food.
Bharat Regmi, 28, said he jumped out of the first floor as the quake lifted his house from its foundations. When he went back a few days later, he and two of his friends found a bag of potatoes in the rubble. "We are living on water and whatever we can dig out from the house," he said, standing under steady rain near the highway to Kathmandu. Later, he crept back under a thin orange sheet, shared with about a dozen other villagers.
Tensions have also flared between foreigners and Nepalis desperate to be evacuated.
In the Himalayas, climbing is set to reopen on Mount Everest next week after damage caused by avalanches is repaired, although many have abandoned their ascents.
An avalanche killed 18 climbers and sherpa mountain guides at the Everest base camp.
REUTER
S

Nepal earthquake: US Marines to begin operations

Nepal earthquake: US Marines to begin operations

PUBLISHED ON MAY 2, 2015 3:17 AM
A man walks along the street near a collapsed house following Saturday's earthquake in Kathmandu, Nepal May 1, 2015. US military aircraft, heavy equipment and air traffic controllers will start arriving in Nepal from Saturday as part of a US relief operation following the devastating earthquake, a senior US officer said. -- PHOTO: REUTERS
KATHMANDU (REUTERS) - US military aircraft, heavy equipment and air traffic controllers will start arriving in Nepal from Saturday as part of a US relief operation following the devastating earthquake, a senior US officer said.
The 7.8 magnitude quake that struck on Saturday killed at least 6,250 people and left hundreds of thousands homeless when it destroyed parts of the capital Kathmandu and flattened villages across a wide swathe of the country.
Brigadier-General Paul Kennedy of the US Marine Corps told Reuters the six military aircraft, including two helicopters, will arrive from Saturday, accompanied by 100 marines and lifting equipment under an agreement reached with Nepal's government earlier in the week.
The US military would help manage the growing piles of relief supplies clogging Nepal's only international airport, which has struggled to distribute all the aid arriving from around the world since the earthquake.
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"What you don't want to do is build up a mountain of supplies," blocking space for planes or more supplies, Kennedy said.
Kennedy's own flight on a C-130 cargo plane was close to " a fuel emergency" because it had to spend some time circling over Kathmandu after a long flight from his base in Okinawa, Japan, on Wednesday, he said.
The general said the plan was part of a long practiced earthquake response in the most populated area of Nepal.
"Nepal serves as the worst-case scenario for military planners," Kennedy said on Friday, speaking at the US Embassy in Kathmandu, in a converted dance fitness studio now decorated with maps and occupied by a team of marines working on laptops.
"It is land-locked and there are only a small number of useable airfields that will handle military sized aircraft," Kennedy said.
Experts have long predicted that a powerful earthquake in Kathmandu would kill up to 100,000 people, and injure close to a million, requiring a formidable international response. In the event, the toll was much lower.
Kennedy did not say how extensive the US presence in Nepal would grow after the initial arrival of four vertical take-off Osprey aircraft, two Bell Hueys and equipment such as forklift trucks to help move relief supplies at the airport.
Teams of soldiers carrying portable radars and including airstrip repair experts, will be sent to enable two provincial airports to receive heavy transport flights day and night.
The airports being considered to relieve the pressure on the international airport include one at trekking destination Pokhara and another near the birthplace of Buddha. "Those are the ones capable of (handling) larger aircraft,"he said.
He said the United States would not be involved in air-traffic operations at Kathmandu airport, which would raise questions of sovereignty.
"When you control the international gateway to any country, the last thing you really want to cede is the air tower, because they control who is coming and who is bringing what," he said.

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