China's top diplomat to visit Japan amid new spy report

China's top diplomat will visit Japan this week for high-level political talks, the foreign ministry said on Monday, amid reports that China has detained two more Japanese nationals for spying. 

PHOTO: REUTERS

OCT 12, 20155:40 PM

[BEIJING] China's top diplomat will visit Japan this week for high-level political talks, the foreign ministry said on Monday, amid reports that China has detained two more Japanese nationals for spying.

State Councillor Yang Jiechi, who outranks the foreign minister, will be in Tokyo on Tuesday and Wednesday and will meet the head of Japan's National Security Council, Shotaro Yachi, a close ally of Japanese Prime Minister Shinzo Abe.

Chinese Foreign Ministry spokeswoman Hua Chunying said the two sides would talk about bilateral and international issues and ways to "manage and control disputes", though was not able to immediately say if Mr Yang would meet Mr Abe.

China and Japan have close economic and cultural ties, but have long bickered over their painful wartime history, and have an increasingly bitter argument over ownership of a group of uninhabited islets in the East China Sea.

Last month China said that it had arrested two Japanese for spying.

Japanese media said over the weekend that two others had also been detained, one a Japanese woman who had been held in Shanghai since June and the other a Japanese national in Beijing.

Ms Hua would not directly comment on those reports.

"As far as I understand, relevant Chinese departments are investigating the relevant cases in accordance with the law. The relevant situation has been passed on to the Japanese side," she told a daily news briefing.

A Japanese foreign ministry spokesman declined to comment.

Chinese President Xi Jinping has overseen a tightening of already strict security laws and regulations, including setting up a new national security commission and renaming the national security law, which took effect in 1993, as the Counterespionage Law.

In 2010, four Japanese nationals were temporarily detained in China on suspicion of entering a military zone and taking photographs without permission. The detentions came at a time of escalating tensions between Tokyo and Beijing.

Last year, China's then-ambassador to Iceland disappeared following reports he had been arrested by state security for passing state secrets for Japan. China has never explained what happened to him.

Sino-Japanese relations, coloured by Japan's occupation of parts of China before and during World War Two as well as rivalry for regional influence, have thawed since Mr Abe met Mr Xi twice since last November.

REUTERS

   
 

China's price regulator say Asian shipping lines cut fees

OCT 12, 20155:33 PM

[SHANGHAI] Asian shipping lines including Japan's Kawasaki Kisen Kaisha and China Shipping Container Lines have voluntarily lowered shipping surcharges, the country's top economic planner said on Monday.

The statement by the National Development and Reform Commission (NDRC) comes after China's cabinet last month said it was probing shipping firms over allegations that they have been levying arbitrary and excessive charges.

The NDRC said Korea's Hanjin Shipping and Hyundai Merchant Marine as well as Taiwan's Evergreen Marine, Wan Hai Lines and Yang Ming Marine Transport Corp were among firms the firms reducing their surcharges. Japan's Nippon Yusen KK had adjusted its fees on Sept 15, it added.

The NDRC said the companies would undertake measures such as cancelling fees for some services and lowering documentation and telex release fees.

REUTERS

Gold climbs to highest in seven weeks as Fed rate view weighed

Gold advanced to the highest in seven weeks as investors assessed the odds for a Federal Reserve interest- rate increase this year, with Barclays Plc saying a split among policy makers meant a rise was unlikely. 

PHOTO: AFP

OCT 12, 20155:30 PM

[SINGAPORE] Gold advanced to the highest in seven weeks as investors assessed the odds for a Federal Reserve interest- rate increase this year, with Barclays Plc saying a split among policy makers meant a rise was unlikely.

Spot bullion gained as much as 0.9 per cent to US$1,166.80 an ounce, the highest since Aug 24, and was at US$1,164.75 by 5:06 pm in Singapore, Bloomberg generic pricing shows. Prices were up 1.6 per cent last week.

Gold's climbed for three of the past four weeks, rebounding from a five-year low in July, amid speculation that the Fed may refrain from tightening until next year. The chances of a rate liftoff in 2015 are below 40 per cent, futures data show. Fed Vice Chairman Stanley Fischer said on Sunday the U.S. economy may be strong enough to merit an increase by year-end, while cautioning that policy makers are monitoring slower job growth and international developments to decide the timing.

"Markets are continuing to price in doubt about a Fed rate hike in December despite Vice Chairman Fischer's weekend comments," Ric Spooner, a chief analyst at CMC Markets in Sydney, said by e-mail. "A significant test looms for gold in the shape of resistance formed by the August high at US$1,170 and the 200-day moving average around US$1,177. It's likely to take a real change of heart on the Fed to push prices clearly through this resistance."

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Minutes from the Fed's meeting in September released Thursday revealed that policy makers were divided, which means they are unlikely to raise rates this year, according to Barclays. The first increase will be in March, analysts Feifei Li and Nikolaos Sgouropoulos, wrote in a report on Monday. Fed fund futures show a 62 per cent probability for a move in March.

Bullion of 99.99 per cent purity climbed as much as 1.3 per cent to 237.78 yuan a gram on the Shanghai Gold Exchange, the highest level since Sept 17, and was at 237.20 yuan. Silver for immediate delivery increased 1 per cent to $15.9920 an ounce. Spot platinum rose 0.7 per cent, while palladium was little changed.

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Russia's Gazprom resumes gas supplies to Ukraine 

Russian natural gas exporter Gazprom has resumed supplies to Ukraine, Chief Executive Alexei Miller said in a statement on Monday, after deliveries were halted in July over a pricing dispute between Moscow and Kiev. 

PHOTO: EPA

OCT 12, 20155:02 PM

[MOSCOW] Russian natural gas exporter Gazprom has resumed supplies to Ukraine, Chief Executive Alexei Miller said in a statement on Monday, after deliveries were halted in July over a pricing dispute between Moscow and Kiev.

Gazprom accounts for around a third of Europe's gas needs and typically about half of that is pumped via Ukraine, which has had several disputes with Moscow over prices in the past decade.

Miller said that gas supplies resumed (at 0700 GMT) after Gazprom received US$234 million out of a total of US$500 million expected in pre-payment for October gas deliveries.

Gazprom halted gas supplies to Ukraine in July after Kiev failed to make prepayments.

Last month, Russia and Ukraine signed a tentative deal on a so-called "winter package", agreeing technical details.

On Friday, Gazprom said that Ukraine has requested 2 billion cubic metres of gas for October.

REUTERS

      

Cameron plans to boost home-building amid supply drought

UK Prime Minister David Cameron set out plans on Monday to force local authorities to build new properties, as the government seeks to boost home ownership and housebuilding. 

PHOTO: EPA

OCT 12, 20157:18 AM

[LONDON] UK Prime Minister David Cameron set out plans on Monday to force local authorities to build new properties, as the government seeks to boost home ownership and housebuilding.

Councils must produce their plans by 2017 or face proposals from the central government, Mr Cameron said in a statement. Housing is a central part of the Conservative Party's policy platform after it won a surprise majority in May's general election. The government wants to deliver 1 million new homes by 2020.

"We need a national crusade to get homes built and everyone must play their part," Mr Cameron said. If councils "fail to act, we'll work with local people to produce a plan for them," he said.

The Royal Institution of Chartered Surveyors has warned that Britain's acute property shortage is set to worsen and said an imbalance of supply and demand will push prices up 6 per cent in 2015.

Mr Cameron, seeking to bolster supply, said funds will be made available to help councils build affordable "starter homes" on brown-field sites and that planning permissions and regulations will be relaxed. A temporary rule introduced in May 2013 that allows the conversion of disused offices into homes without planning permission will be made permanent, he said.

While Jeremy Blackburn, head of policy and parliamentary affairs at RICS welcomed the measures, he said fast implementation was needed.

"The system needs to really pick up speed in order to deliver the vibrant property sector on which the success of our economy depends," he said.

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China: Stocks jump after PBOC says correction "almost over"

PHOTO: REUTERS

OCT 12, 20151:39 PM

[SHANGHAI] China shares jumped over 3 per cent on Monday to their highest level in seven weeks after the central bank took fresh steps to inject liquidity into the struggling economy and said the stock market's correction "is almost over".

Investors were also in a buying mood ahead of the 13th five-year economic plan to be announced later this month, expecting stimulus and other growth measures.

Hong Kong stocks were firmer too, extending last week's 4.4 per cent rebound on subdued expectations of a US rate hike this year and a recovery in global commodity prices.

On the mainland, the CSI300 index rose 3.5 per cent to 3,458.08 points by midday, while the Shanghai Composite Index gained 3.4 per cent, to 3,290.62 points.

Both were at their highest levels since Aug 24, though still down more than 30 per cent from their mid-June highs.

The People's Bank of China's said at the weekend that it would expand a pilot scheme that allows banks to borrow money from the central bank using high quality credit assets as collateral.

"The policy may not immediately inject a lot of liquidity into the economy, but it has boosted expectations of monetary easing," said Wu Kan, head of equity trading at Shanghai-based investment firm Shanshan Finance.

His view was echoed by China International Capital Corp (CICC), which said in a report on Monday that it's "inevitable"for the central bank to expand the supply of base money as foreign reserves shrink, although it noted that banks currently have little incentive to obtain fresh liquidity in a slowing economy.

Investors were also emboldened by market-soothing comments from deputy central bank governor Yi Gang, who was quoted by official media as saying that China's stock market correction is"almost over."

And in Beijing's latest attempt to prevent a repeat of the summer rout that knocked the market down roughly 40 per cent, China issued draft rules over the weekend to govern automated stock trading, which has been blamed in part for its role in the market tumult.

Stocks rose across the board, led by small-caps, with Shenzhen's growth board ChiNext surging 4.5 per cent.

Real estate shares also posted robust gains, boosted by recent data showing in a recovery in property sales.

Poly Real Estate rose 3.3 per cent after reporting a 20 per cent rise in contract sales during the Jan-Sept period.

In Hong Kong, the Hang Seng index added 1.4 per cent to 22,763.43 points, while the Hong Kong China Enterprises Index gained 2.1 per cent to 10,620.99.

China telecom giants China Mobile, China Telecom and China Unicom rose on hopes of tower sale announcements.

REUTERS

    
 

PBOC deputy governor says China stock market correction "almost over": official paper  

China's stock market correction is "almost over", the official China Securities Journal quoted a senior central banker as saying. 

PHOTO: REUTERS

OCT 12, 20159:47 AM

[SHANGHAI] China's stock market correction is "almost over", the official China Securities Journal quoted a senior central banker as saying.

Yi Gang, deputy governor of the People's Bank of China told an annual meeting of the International Monetary Fund and World Bank in Peru that China's stock market has experienced several rounds of corrections, the newspaper reported on Monday.

The corrections have had limited direct impact on China's economy as Beijing has taken a series of measures to avoid systemic risks, Mr Yi was quoted as saying.

REUTERS

Nigeria reveals oil price drop damage in data transparency drive

Proceeds from Nigeria's oil receipts fell by two-thirds between September 2014 and July this year, the state oil company in Africa's top crude producer said on Sunday as it unveiled statistics aimed at improving transparency. 

PHOTO: BLOOMBERG

OCT 12, 20156:54 AM

[ABUJA] Proceeds from Nigeria's oil receipts fell by two-thirds between September 2014 and July this year, the state oil company in Africa's top crude producer said on Sunday as it unveiled statistics aimed at improving transparency.

Africa's biggest economy, which relies on crude sales for around 70 per cent of government revenues, has been hit hard by the fall in global oil prices over the last year.

"The dwindling oil price has negatively affected the NNPC (Nigerian National Petroleum Corporation) dollar contribution to the federation account," the report said.

"The receipts witnessed a sharp decline of more than 67 per cent from September 2014, when the receipt was at its peak, to July 2015 with dire consequences to the federation," it said.

The report showed that total receipts for crude oil and gas exports between January and August 2015 were US$3.4 billion.

NNPC has begun the monthly publication of provisional financial and operational reports after new chief Emmanuel Kachikwu pledged to introduce the approach as part of a drive to crackdown on corruption in the oil sector. "Illustrated with tables, graphs and charts, the report vividly throws light into aspects of NNPC's operations that were once described as 'opaque'," said NNPC spokesman Ohi Alegbe.

Under Nigeria's constitution, NNPC is supposed to hand over its oil revenue to the federal government, which then pays back what the firm needs based on a budget approved by parliament.

Of the total receipts, US$608 million was remitted to the federation account as dollar proceeds while the balance of US$2.8 billion was used to fund joint venture cash calls for that period.

Mr Kachikwu, a former Exxon executive who was appointed NNPC chief by President Muhammadu Buhari in July with a brief to root out corruption was asked to be in the cabinet last week.

Although a specific role has not yet been assigned to him, Mr Kachikwu is expected to become state minister of petroleum to oversee daily operations under Buhari. The president told Reuters he would keep the petroleum portfolio for himself.

REUTERS