Saturday, August 1, 2015

Wing part arrives in France as MH370 link investigated

Wing part arrives in France as MH370 link investigated


[PARIS] A piece of Boeing 777 wreckage that washed up on an Indian Ocean island arrived for analysis in France early Saturday, after Malaysian authorities said the part was almost certainly recovered from missing flight MH370.
Paris' Orly airport website confirmed the Air France flight transporting the piece of wreckage landed at 6.17 am local time (0417 GMT) from the French island of La Reunion.
A police escort will accompany the two-metre (6.5 foot) part on its journey by road to a defence ministry laboratory near the southwestern city of Toulouse.
Experts will begin their analysis on Wednesday, along with an examination of parts of a suitcase discovered nearby.



If confirmed, the discovery would mark the first breakthrough in a case that has baffled aviation experts for 16 months.
"I believe that we are moving closer to solving the mystery of MH370. This could be the convincing evidence that MH370 went down in the Indian Ocean," Malaysia's deputy transport minister Abdul Aziz Kaprawi told AFP.
The Malaysia Airlines flight disappeared on March 8, 2014 en route from Kuala Lumpur to Beijing. There were 239 people on board.
Boeing said in a statement Friday that it would send a technical team to France to study the plane debris at the request of civil aviation authorities.
"Our goal, along with the entire global aviation industry, continues to be not only to find the airplane, but also to determine what happened - and why," the US aerospace giant added.
However, others have warned one small piece of plane debris is unlikely to completely clear up one of aviation's greatest puzzles.
Australian Deputy Prime Minister Warren Truss said while the part "could be a very important piece of evidence", using reverse modelling to determine more precisely where the debris may have drifted from was "almost impossible".
MH370 was one of only three Boeing 777s to have been involved in major incidents, along with the downing of flight MH17 over Ukraine last year and the Asiana Airlines crash at San Francisco airport in 2013 that left three dead.
Photographs show the wing component bearing the part number "657BB".
"From the part number, it is confirmed that it is from a Boeing 777 aircraft. This information is from MAS (Malaysia Airlines)," Mr Aziz told AFP.
On La Reunion, where a clean-up crew discovered the wreckage and the suitcase, dozens of curious locals scoured the rocky shore for other possible debris.
Members of the same clean-up association on Friday discovered a detergent bottle with Indonesian markings and a bottle of Chinese-branded mineral water, which they took to police.
Of the victims, 152 were Chinese and seven from Indonesia.
Australian officials played down the discovery of the suitcase, saying such items "may just be rubbish".
No confirmed physical evidence has ever been found, sparking wild conspiracy theories about the plane's fate.
For the families of the victims, torn between wanting closure and hoping that their loved ones were somehow still alive, the discovery of the wing part has been yet another painful turn on an emotional rollercoaster.
Ghyslain Wattrelos, whose wife and two children were on the flight, said he was relieved to get the smallest bit of information about the missing plane.
"I hope to have answers very soon, because the wait is unbearable," the Frenchman, currently in San Francisco, told AFP.
Australian Jeanette Maguire, whose sister Cathy was on board, said the discovery had triggered "a very bittersweet feeling for all of the family, it's quite emotional".
An Australian-led search has spent 16 months combing the southern Indian Ocean for the aircraft, which is known to have inexplicably veered off-course.
"This is the first positive sign that we have located part of that plane," Australia's Foreign Minister Julie Bishop said Saturday.
"Australia is still committed to assisting and doing whatever we can so that we can locate MH370 and provide answers for the families," she added.
Speculation on the cause of the plane's disappearance has focused primarily on a possible mechanical or structural failure, a hijacking or terror plot, or rogue pilot action.
Scientists say there are several plausible scenarios in which ocean currents could have carried a piece of debris from the plane to the island.
Australian search authorities, which are leading the Indian Ocean hunt for the aircraft some 4,000 kilometres (2,500 miles) from La Reunion, said they were confident the main debris field was in the current search area.
Martin Dolan, chief commissioner of the Australian Transport Safety Bureau, which is leading the search for the passenger jet, said the discovery did not mean other parts would start washing up on La Reunion.
"Over the last 16 or 17 months, any floating debris would have dispersed quite markedly across the Indian Ocean," he said.
AFP

Gold rises after US data, set for biggest monthly drop in 2 years

Gold rises after US data, set for biggest monthly drop in 2 years


[LONDON] Gold reversed earlier losses on Friday as the dollar fell after weaker-than-expected US data, but prices remained on course for their biggest monthly decline in more than two years on expectations the Federal Reserve will soon raise interest rates.
A US government index on employment costs rose less than forecast. "There is no wage inflation in the US and that was the trigger for the sharp move in the euro/dollar rate, which is in turn lending support to the entire commodity sector," Commerzbank analyst Daniel Briesemann said.
Spot gold, lower initially, rose as much as 1.4 per cent to a session high of US$1,103.13 an ounce, before trading up 0.8 per cent at US$1,095.80 by 2:34 pm EDT (1834 GMT).
US gold for August delivery climbed 0.6 per cent to settle at US$1,094.90 an ounce.


Investor confidence was shaken last week with when bullion prices tumbled to a 5-1/2-year low of US$1,077 on July 24. The metal has lost 6.4 per cent so far this month, its steepest decline since June 2013.
The dollar fell as much as 1.1 per cent against a basket of currencies after the data on employment costs.
Figures had shown a second-quarter improvement in US economic growth on Thursday, which led investors to increase bets the Federal Reserve was on track to raise interest rates, possibly at its next meeting in September.
The next crucial data release is US nonfarm payroll figures, due on Aug 7. "If we get a very strong labor market report next week then this gold strength is going to be reversed," Mr Briesemann said.
Waning investment demand and weak physical appetite for gold also pose a further downside risk for prices, said Argonaut Securities analyst Helen Lau.
Investors worldwide pulled US$1.2 billion out of precious metals funds in the week ended July 29, a Bank of America Merrill Lynch Global Research report showed. "Physical demand has been on the low side with premiums in China and India hardly moving," MKS Group trader Jason Cerisola said in a note.
On the Shanghai Gold Exchange, premiums stood at just over US$1 an ounce on the London spot price, traders said.
In other precious metals, spot silver was up 0.7 per cent at US$14.75 an ounce. "Silver might soon be in a shortage as low commodity prices prompt further capital expenditure cuts across primary and secondary mines," said Capital Economics in a note.
Spot platinum fell 0.4 per cent to US$982.25 an ounce and palladium dropped 1.2 per cent to US$611 an ounce.
REUTERS

Noble Group battles falling markets as short-selling hits new pitch

Noble Group battles falling markets as short-selling hits new pitch


[SINGAPORE] Noble Group's attempts to shore up its Singapore-listed shares since June have run into massive selling as Asia's biggest commodity trader battles waning investor confidence in its prospects and mounting pressure on its credit ratings.
Between June 11 and July 24, Noble bought back its shares 11 times and paid S$131.1 million for its purchases. But that failed to deflect waves of selling that drove its shares down by more than 10 per cent on both Thursday and Friday. Investors in Noble include China Investment Corp and BlackRock.
Weaker commodity prices had dimmed the outlook for Noble's earnings. Then earlier this year the group was accused of inflating its assets by billions of dollars in reports by Iceberg Research, and later by short-seller Muddy Waters. Noble rejected those claims, but that failed to stop its shares from losing nearly two-thirds of their value since mid-February.
Investors have been monitoring the short interest on Noble's stock. The percentage of outstanding shares on loan had risen to 12.01 per cent on July 29, from 0.1 per cent in mid-February before Iceberg issued the first of its three reports, data from London-based financial information services firm Markit shows. "The talk is that if the short interest hits 10 percent, it will be a tipping point for sentiment," said a Singapore-based analyst who declined to be identified.




The short interest coincides with a period in which Noble is not allowed to buy back its shares. Singapore forbids share buybacks in the two-week period before a company reports its quarterly results. Noble's earnings are due on Aug 13.
On Friday, the shares tumbled as much as 16 per cent to yet another 6-1/2-year low of S$0.435, following a steep decline in heavy volume on Thursday that prompted the Singapore Exchange to issue a 'trade with caution' note.
Noble had said it wasn't aware of any information as to why its shares had fallen more than 10 per cent on Thursday.
Noble's bonds have also weakened and its credit default swaps contract has risen as markets worried about a deterioration in the company's credit rating.
Noble's bonds due 2020 traded down 2-3 points at 97.25/98 on Friday. Its perpetual bonds, which investors say have the weakest structure in their category, are trading at 69/70 cents on the dollar. That was a deep discount to the price at which they were initially issued.
Traders said Noble's bonds are the most sought-after in the repurchase agreement (repo) market where investors who hold a negative view on Noble but do not own its bonds, borrow securities for short selling in the debt market.
Standard & Poor's cut Noble's credit rating outlook to negative last month, citing concerns about valuations of its long-term contracts. However, the agency reaffirmed Noble's credit rating of BBB-minus, the lowest investment grade.
Fitch and Moody's both have Noble's rating at the lowest investment grade rating level.
An investment grade rating is especially key for commodity traders as they mainly rely on bank funding for their day-to-day operations. "The challenge remains the same - it is difficult to analyse the credit risk," said one Hong Kong-based fund manager.
According to S&P's definition, a negative outlook means a rating downgrade could happen in the next six months to two years.
With revenues of US$86 billion last year, Hong Kong-based Noble is one of Asia's largest companies to find itself in a reputational battle over accounts where consequences can be long-lasting.
Noble has hired PricewaterhouseCoopers (PwC) to review how it values some of its commodity assets. PwC's report will be released on the same day as Noble's second-quarter earnings.
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