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PepsiCo Inc reported slightly better-than-expected quarterly revenue, helped by strong demand for Frito-Lay snacks and new beverages in North America. 
 
New drinks such as Propel flavoured water and Naked Cold Pressed juice, and snacks under its &quot;Simply&quot; brand helped drive sales, the company said. 
 
Net income attributable to PepsiCo rose to $2.01 billion, or $1.38 per share, in the second quarter which ended on June 11, from $1.98 billion, or $1.33 per share, a year earlier. 
 
Net revenue fell 3.3 per cent to $15.395 billion, slightly beating the average analyst estimate of $15.37 billion, according to Thomson Reuters Institutional Brokers&#39; Estimate System. 
 
Net revenue in the North America Beverages unit, the company&#39;s biggest business, rose one per cent &ndash; the slowest growth since the company started breaking out beverage sales from the region a year ago. 
 
Revenue from the Frito-Lay business, which includes Doritos, Lay&#39;s and the Simply line of snacks, rose three per cent. New snacks launched under the Simply brand included Simply Tostitos black bean chips and Simply Tostitos organic chunky medium salsa. 
 
(Reuters)

New drinks such as Propel flavoured water, Naked Cold Pressed juice, and snacks by the brand 'Simply', helped drive sales

PepsiCo Inc reported slightly better-than-expected quarterly revenue, helped by strong demand for Frito-Lay snacks and new beverages in North America. New drinks such as Propel flavoured water and Naked Cold Pressed juice, and snacks under its "Simply" brand helped drive sales, the company said. Net income attributable to PepsiCo rose to $2.01 billion, or $1.38 per share, in the second quarter which ended on June 11, from $1.98 billion, or $1.33 per share, a year earlier. Net revenue fell 3.3 per cent to $15.395 billion, slightly beating the average analyst estimate of $15.37 billion, according to Thomson Reuters Institutional Brokers' Estimate System. Net revenue in the North America Beverages unit, the company's biggest business, rose one per cent – the slowest growth since the company started breaking out beverage sales from the region a year ago. Revenue from the Frito-Lay business, which includes Doritos, Lay's and the Simply line of snacks, rose three per cent. New snacks launched under the Simply brand included Simply Tostitos black bean chips and Simply Tostitos organic chunky medium salsa. (Reuters)

Thanks to new products, PepsiCo crosses revenue targets

The Chinese government&#39;s call to the nation to build an innovation-driven economy from the top down has sparked a rush by local governments to construct new buildings in the name of supporting creativity. 
 
Innovation centres have been popping up around the country and are set to more than double to nearly 5,000 in the next five years, according to internet research firm iiMedia. The only problem for local governments; entrepreneurs are not moving in. 
 
Many centres are in small Chinese cities or towns, not ideal locations for attracting startups. There is no local market for their product, no local ecosystem of suppliers and fellow entrepreneurs and centres generally provide only basic amenities, such as a desk and a telephone. They lack the financial, technical or marketing expertise that many startups need. 
 
Most incubators have occupancy rates of no more than 40 per cent, iiMedia says. 
 
The result: like steel mills, theme parks and housing before them, the country now faces a glut of innovation centres as another top-down policy backfires to leave white-elephant projects and a further buildup of debt. 
 
&quot;The risk of a bubble is extremely large,&quot; said Shi Jiqiang, a partner at Leilai Management, which runs day-to-day operations at a startup base in the city of Tianjin, near Beijing. 
 
&quot;This is both a test for government and for the managers of startup spaces ... there aren&#39;t enough entrepreneurs.&quot; 
 
China&#39;s Ministry of Industry and IT declined to comment and the state planning agency, the National Development and Reform Commission, did not respond to a request for comment. 
 
Beijing argues its development model that worked so well for infrastructure and real estate, powering the country through the global financial crisis, can build successful, high-tech startups. 
 
With slogans such as &quot;mass entrepreneurship&quot; and &quot;internet plus&quot;, Beijing has called for innovation centres to be built all over the country, hoping to lay the groundwork for the next Jack Ma - who founded e-commerce giant Alibaba - to emerge. 
 
It has encouraged college students and even migrant workers to try their hand at starting their own businesses to transform China into a high-tech economy less reliant on basic manufacturing. 
 
Almost 80 per cent of the capital for the innovation centres springing up around the country is coming from the government or universities, which are state-backed in China, or a combination of sources, iiMedia said. 
 
&quot;In any sort of market, you want the experts making the decisions, not some technocrat or bureaucrat,&quot; said William Bao Bean, investment partner at venture capital fund SOSV, which invests in startups. &quot;You don&#39;t tend to see too many successful companies come out of a government-based decision-making process.&quot; 
 
Open for business 
 
The small town of Shacheng in Huailai county in northern Hebei province answered Beijing&#39;s call for innovation by building two 25-storey adjoining towers - one for office space and the other as an innovation centre. 
 
However, the innovation centre, offering desks and a period of free rent and utilities to potential startups, is empty. The floors are littered with rubbish and dust. 
 
Like other towns in China&#39;s industrial heartland, Shacheng is feeling the brunt of Beijing&#39;s push to reduce massive industrial overcapacity. Glass and cement factories, and coal mines and steel mills have been shut down. 
 
The town offers few signs of the central government&#39;s innovation campaign. Chinese characters hanging on a fence in Shacheng&#39;s economic zone spell out &quot;mass entrepreneurship&quot; but otherwise local people said they had not seen any promotion of the innovation centre and they felt it was not targetted at them anyhow. 
 
Instead, they assumed it was designed to attract students and entrepreneurs from Beijing, some four-hours away by train. 
 
&quot;I wouldn&#39;t consider becoming an entrepreneur. You need money to do that. No, for someone like me, I don&#39;t really have many options,&quot; said Liu Haiyang, 30, who runs a shop next to the innovation centre, selling bathroom fittings. 
 
Shacheng&#39;s local authority and the county economic planner declined to comment. 
 
Residents said they hoped their economic fortunes would improve when a high-speed rail link with Beijing, which will cut travel time to the capital down to half an hour, is completed in 2019. 
 
&quot;The incubator is losing money,&quot; said a businessman with strong ties to the local government, who spoke on condition of anonymity. &quot;But we&#39;re playing the long game, hoping this push will create companies that pay taxes and add jobs to the local economy.&quot; 
 
Elsewhere, some local governments have rebranded empty office space as innovation centres. At the new Yujiapu economic zone in Tianjin near Beijing, the government has designated 5.5 square kilometres for 11 incubators with at least four more on the way. The zone&#39;s flagship incubator is only 30 percent occupied, an administrative assistant said. 
 
&quot;All these office buildings have already been built,&quot; said Yang Dehong, a local government official. &quot;We might as well use them, help startups reduce their costs,&quot; she said. 
 
&quot;And ride the wave of this (innovation) policy,&quot; added Pei Lei, another government official. 
 
AGAINST THE ODDS 
 
Venture capitalists say startups gravitate to where successful innovation centres are already up and running, or where they can find the right mix of a local market, talent, expertise and fellow entrepreneurs. 
 
That generally means the big cities, such as Zhuhai, Beijing, Guangzhou, Shanghai and Shenzhen - the five cities that top the rankings for startups in China. 
 
&quot;The idea that you can predict location or the idea that every geography happens to have this nascent group just waiting to be given capital to go create the next Alibaba, is just not true,&quot; said Gary Rieschel, founder of Qiming Venture Partners, a China-based venture capital firm. 
 
Other more fundamental factors are holding back an entrepreneurial culture in China, startup experts say. 
 
Even in towns with universities, young Chinese are often pressured by their parents to find a job considered more steady, such as in government or with a private company. Starting your own business is seen as too high risk. 
 
The Chinese education system, which largely focuses on rote learning, also crimps the development of creative thinkers, said Bo Yiqun, chief executive of a privately run co-working space in Beijing with 85 percent occupancy. 
 
&quot;Innovation is related to education,&quot; Bo said. &quot;If education levels don&#39;t rise, we can&#39;t expect innovation to catch up that fast.&quot; 
 
Even if all those factors were in place, government efforts would have more chance of success if officials teamed up with former entrepreneurs or venture capitalists with money at stake, Chinaccelerator&#39;s Bao said. 
 
&quot;Where it&#39;s not worked the world over, as well as in China, is where the governments themselves are making the investment decisions,&quot; he said. 
 
(Reuters)

The Chinese government's call to the nation to build an innovation-driven economy from the top down has sparked a rush by local governments to construct new buildings in the name of supporting creativity. Innovation centres have been popping up around the country and are set to more than double to nearly 5,000 in the next five years, according to internet research firm iiMedia. The only problem for local governments; entrepreneurs are not moving in. Many centres are in small Chinese cities or towns, not ideal locations for attracting startups. There is no local market for their product, no local ecosystem of suppliers and fellow entrepreneurs and centres generally provide only basic amenities, such as a desk and a telephone. They lack the financial, technical or marketing expertise that many startups need. Most incubators have occupancy rates of no more than 40 per cent, iiMedia says. The result: like steel mills, theme parks and housing before them, the country now faces a glut of innovation centres as another top-down policy backfires to leave white-elephant projects and a further buildup of debt. "The risk of a bubble is extremely large," said Shi Jiqiang, a partner at Leilai Management, which runs day-to-day operations at a startup base in the city of Tianjin, near Beijing. "This is both a test for government and for the managers of startup spaces ... there aren't enough entrepreneurs." China's Ministry of Industry and IT declined to comment and the state planning agency, the National Development and Reform Commission, did not respond to a request for comment. Beijing argues its development model that worked so well for infrastructure and real estate, powering the country through the global financial crisis, can build successful, high-tech startups. With slogans such as "mass entrepreneurship" and "internet plus", Beijing has called for innovation centres to be built all over the country, hoping to lay the groundwork for the next Jack Ma - who founded e-commerce giant Alibaba - to emerge. It has encouraged college students and even migrant workers to try their hand at starting their own businesses to transform China into a high-tech economy less reliant on basic manufacturing. Almost 80 per cent of the capital for the innovation centres springing up around the country is coming from the government or universities, which are state-backed in China, or a combination of sources, iiMedia said. "In any sort of market, you want the experts making the decisions, not some technocrat or bureaucrat," said William Bao Bean, investment partner at venture capital fund SOSV, which invests in startups. "You don't tend to see too many successful companies come out of a government-based decision-making process." Open for business The small town of Shacheng in Huailai county in northern Hebei province answered Beijing's call for innovation by building two 25-storey adjoining towers - one for office space and the other as an innovation centre. However, the innovation centre, offering desks and a period of free rent and utilities to potential startups, is empty. The floors are littered with rubbish and dust. Like other towns in China's industrial heartland, Shacheng is feeling the brunt of Beijing's push to reduce massive industrial overcapacity. Glass and cement factories, and coal mines and steel mills have been shut down. The town offers few signs of the central government's innovation campaign. Chinese characters hanging on a fence in Shacheng's economic zone spell out "mass entrepreneurship" but otherwise local people said they had not seen any promotion of the innovation centre and they felt it was not targetted at them anyhow. Instead, they assumed it was designed to attract students and entrepreneurs from Beijing, some four-hours away by train. "I wouldn't consider becoming an entrepreneur. You need money to do that. No, for someone like me, I don't really have many options," said Liu Haiyang, 30, who runs a shop next to the innovation centre, selling bathroom fittings. Shacheng's local authority and the county economic planner declined to comment. Residents said they hoped their economic fortunes would improve when a high-speed rail link with Beijing, which will cut travel time to the capital down to half an hour, is completed in 2019. "The incubator is losing money," said a businessman with strong ties to the local government, who spoke on condition of anonymity. "But we're playing the long game, hoping this push will create companies that pay taxes and add jobs to the local economy." Elsewhere, some local governments have rebranded empty office space as innovation centres. At the new Yujiapu economic zone in Tianjin near Beijing, the government has designated 5.5 square kilometres for 11 incubators with at least four more on the way. The zone's flagship incubator is only 30 percent occupied, an administrative assistant said. "All these office buildings have already been built," said Yang Dehong, a local government official. "We might as well use them, help startups reduce their costs," she said. "And ride the wave of this (innovation) policy," added Pei Lei, another government official. AGAINST THE ODDS Venture capitalists say startups gravitate to where successful innovation centres are already up and running, or where they can find the right mix of a local market, talent, expertise and fellow entrepreneurs. That generally means the big cities, such as Zhuhai, Beijing, Guangzhou, Shanghai and Shenzhen - the five cities that top the rankings for startups in China. "The idea that you can predict location or the idea that every geography happens to have this nascent group just waiting to be given capital to go create the next Alibaba, is just not true," said Gary Rieschel, founder of Qiming Venture Partners, a China-based venture capital firm. Other more fundamental factors are holding back an entrepreneurial culture in China, startup experts say. Even in towns with universities, young Chinese are often pressured by their parents to find a job considered more steady, such as in government or with a private company. Starting your own business is seen as too high risk. The Chinese education system, which largely focuses on rote learning, also crimps the development of creative thinkers, said Bo Yiqun, chief executive of a privately run co-working space in Beijing with 85 percent occupancy. "Innovation is related to education," Bo said. "If education levels don't rise, we can't expect innovation to catch up that fast." Even if all those factors were in place, government efforts would have more chance of success if officials teamed up with former entrepreneurs or venture capitalists with money at stake, Chinaccelerator's Bao said. "Where it's not worked the world over, as well as in China, is where the governments themselves are making the investment decisions," he said. (Reuters)

sadfsf

French dairy giant Danone said on Thursday that it had agreed to buy US organic foods producer WhiteWave Foods with a view to creating a world leader for organic produce. 
 
The all-cash transaction values the US company at $12.5 billion &nbsp;and will allow Danone to double its business in the US, the French group said in a statement, adding it expected to finalise the deal by the end of the year. 
 
Danone&#39;s share price rose by more than four per cent in early Paris trading on news of the deal. 
 
&quot;Our perfect complementarity will allow us to create a uniquely-positioned organic world leader,&quot; CEO Emmanuel Faber said in a conference call. 
 
Both companies&#39; board of directors have unanimously approved the deal, Danone said. 
 
WhiteWave produces a range of organic dairy products and plant-based dairy alternatives, achieving sales of $4 billion in 2015 with such brands as Silk milk and Earthbound Farm organic salad. 
 
Since its stock market flotation in 2012, WhiteWave has generated an annual increase in operating profit of 20 per cent, Danone said. 
 
The French company said the deal would allow it to tap into consumer trends &quot;for healthier and more sustainable eating and drinking options&quot;. 
 
&quot;Organic foods and beverages and non-GMO plant-based alternatives to milk and yoghurt are among the fastest growing categories in the industry,&quot; Danone said. 
 
Dairy products are already a core business for Danone, which employs 100,000 people worldwide and generated $22.4 billion of sales last year. Its portfolio also includes baby food and water. 
 
&quot;The value-creation profile is strong. We will contribute 100 years of research and development into protein fermentation, which will be combined with WhiteWave&#39;s transformation know-how,&quot; Faber said. 
 
Danone said it had offered to pay $56.25 per share &quot;representing a total enterprise value of approximately $12.5 billion&quot;. It said the takeover will be financed entirely by debt. 
 
The deal, which is expected to produce annual synergies of $300 million by 2020, has yet to be endorsed by WhiteWave&#39;s shareholders and by competition authorities. 
 
(AFP)

Danone, which employs 100,000 people worldwide, will sign a deal with WhiteWave Foods in a bid to dominate the organic foods sector

French dairy giant Danone said on Thursday that it had agreed to buy US organic foods producer WhiteWave Foods with a view to creating a world leader for organic produce. The all-cash transaction values the US company at $12.5 billion and will allow Danone to double its business in the US, the French group said in a statement, adding it expected to finalise the deal by the end of the year. Danone's share price rose by more than four per cent in early Paris trading on news of the deal. "Our perfect complementarity will allow us to create a uniquely-positioned organic world leader," CEO Emmanuel Faber said in a conference call. Both companies' board of directors have unanimously approved the deal, Danone said. WhiteWave produces a range of organic dairy products and plant-based dairy alternatives, achieving sales of $4 billion in 2015 with such brands as Silk milk and Earthbound Farm organic salad. Since its stock market flotation in 2012, WhiteWave has generated an annual increase in operating profit of 20 per cent, Danone said. The French company said the deal would allow it to tap into consumer trends "for healthier and more sustainable eating and drinking options". "Organic foods and beverages and non-GMO plant-based alternatives to milk and yoghurt are among the fastest growing categories in the industry," Danone said. Dairy products are already a core business for Danone, which employs 100,000 people worldwide and generated $22.4 billion of sales last year. Its portfolio also includes baby food and water. "The value-creation profile is strong. We will contribute 100 years of research and development into protein fermentation, which will be combined with WhiteWave's transformation know-how," Faber said. Danone said it had offered to pay $56.25 per share "representing a total enterprise value of approximately $12.5 billion". It said the takeover will be financed entirely by debt. The deal, which is expected to produce annual synergies of $300 million by 2020, has yet to be endorsed by WhiteWave's shareholders and by competition authorities. (AFP)

Danone buys US organics producer in multi-billion-dollar deal

JPMorgan&nbsp;Chase &amp; Co could be forced to move thousands of staff out of Britain if the country loses its automatic right to sell financial services to the European Union after last month&#39;s Brexit vote, bank CEO Jamie Dimon told an Italian newspaper.

Currently, banks based in the UK can sell services freely across the EU under a &quot;passporting&quot; system, considered the most significant feature of the EU single market for financial firms. But that is now in doubt after Britons voted to leave the bloc.

&quot;The key issue is the &#39;passport rule&#39; that we have in London and allows us to provide services to clients in the European Union,&quot; Il Sole 24 Ore quoted Dimon as saying on Thursday.

&quot;However, if the EU imposes new conditions on Britain, the worst-case scenario is we would have to move some thousands of employees to other branches in the Euro zone,&quot; Dimon said.

JPMorgan&nbsp;has 16,000 employees in Britain. Its European headquarters are in London and the bank has offices in the English coastal city of Bournemouth as well as in Scotland.

Those locations helped&nbsp;JPMorgan&nbsp;produce $14.2 billion worth of revenue last year from operations across Europe, the Middle East and Africa.

(Reuters) 
 
&nbsp;

The company has said that if the EU imposes new rules on Britain it would move thousands of employees to branches in other Euro zone

JPMorgan Chase & Co could be forced to move thousands of staff out of Britain if the country loses its automatic right to sell financial services to the European Union after last month's Brexit vote, bank CEO Jamie Dimon told an Italian newspaper. Currently, banks based in the UK can sell services freely across the EU under a "passporting" system, considered the most significant feature of the EU single market for financial firms. But that is now in doubt after Britons voted to leave the bloc. "The key issue is the 'passport rule' that we have in London and allows us to provide services to clients in the European Union," Il Sole 24 Ore quoted Dimon as saying on Thursday. "However, if the EU imposes new conditions on Britain, the worst-case scenario is we would have to move some thousands of employees to other branches in the Euro zone," Dimon said. JPMorgan has 16,000 employees in Britain. Its European headquarters are in London and the bank has offices in the English coastal city of Bournemouth as well as in Scotland. Those locations helped JPMorgan produce $14.2 billion worth of revenue last year from operations across Europe, the Middle East and Africa. (Reuters)

JPMorgan could move thousands of staffers out of UK: Report

Samsung Electronics on Thursday flagged its biggest operating profit in more than two years, boosted by cost-cutting efforts and solid sales of its latest flagship smartphone. 
 
In an earnings estimate, the South Korean electronics giant - also the world&#39;s top handset maker - predicted an operating profit of 8.1 trillion Won ($7 billion) for April to June, up 17 per cent from 6.9 trillion Won a year back. 
 
It is the biggest operating profit since the first quarter of 2014 and beat estimates of 7.4 trillion Won among analysts surveyed by Bloomberg News. 
 
Analysts attributed the better-than-expected figures to the firm&#39;s aggressive cost-cutting efforts and brisk sales of the Galaxy S7 - the latest version of its high-end flagship smartphone.&nbsp; 
 
&quot;Samsung&#39;s mobile unit is believed to have performed well thanks to robust sales of Galaxy S7s as well as an overhaul of its low and mid-end handset line-up,&quot; said Peter Lee, analyst at NH Investment &amp; Securities. 
 
He estimated the firm had sold more than 16 million units of the S7, introduced in March ahead of new launches by competitors including Apple. 
 
Samsung&#39;s mobile business accounts for a lion&#39;s share of the firm&#39;s overall profit, which has been increasingly squeezed by competition both from Apple&#39;s iPhone in the high-end market and by lower-end devices from Chinese rivals like Huawei. 
 
Samsung&#39;s aggressive cost-cutting in marketing played a key role in the strong profit forecast, Greg Roh of HMC Investment said, warning of more competition from Apple later this year. 
 
&quot;With Apple releasing new products in the latter half of the year... I think (Samsung&#39;s) earnings may drop in the second half of this year,&quot; he said.&nbsp; 
 
(AFP)

Estimated earnings predicted an operating profit of $7 billion for April to June, 2016

Samsung Electronics on Thursday flagged its biggest operating profit in more than two years, boosted by cost-cutting efforts and solid sales of its latest flagship smartphone. In an earnings estimate, the South Korean electronics giant - also the world's top handset maker - predicted an operating profit of 8.1 trillion Won ($7 billion) for April to June, up 17 per cent from 6.9 trillion Won a year back. It is the biggest operating profit since the first quarter of 2014 and beat estimates of 7.4 trillion Won among analysts surveyed by Bloomberg News. Analysts attributed the better-than-expected figures to the firm's aggressive cost-cutting efforts and brisk sales of the Galaxy S7 - the latest version of its high-end flagship smartphone. "Samsung's mobile unit is believed to have performed well thanks to robust sales of Galaxy S7s as well as an overhaul of its low and mid-end handset line-up," said Peter Lee, analyst at NH Investment & Securities. He estimated the firm had sold more than 16 million units of the S7, introduced in March ahead of new launches by competitors including Apple. Samsung's mobile business accounts for a lion's share of the firm's overall profit, which has been increasingly squeezed by competition both from Apple's iPhone in the high-end market and by lower-end devices from Chinese rivals like Huawei. Samsung's aggressive cost-cutting in marketing played a key role in the strong profit forecast, Greg Roh of HMC Investment said, warning of more competition from Apple later this year. "With Apple releasing new products in the latter half of the year... I think (Samsung's) earnings may drop in the second half of this year," he said. (AFP)

Samsung's operating profit jumps 17% due to S7 sales and cost-cutting

Four US investment banks promised British finance minister George Osborne on Thursday that they would help London keep its top spot as a global financial centre following the country&#39;s vote to leave the European Union. 
 
Since the June 23 referendum there have been fears of an exodus from the City of London if access to the EU&#39;s single market becomes significantly harder. Banks like JPMorgan have said they could move thousands of jobs. 
 
On Thursday JP Morgan, Goldman Sachs, Bank of America Merrill Lynch and Morgan Stanley, as well as Britain&#39;s Asia-focused Standard Chartered said they would try to support London&#39;s financial sector. 
 
&quot;Today we met and agreed that we would work together ... with a common aim to help London retain its position as the leading international financial centre,&quot; the banks said in a joint statement with Osborne. 
 
The statement said no other city in Europe had capital markets as deep as those of London, but the banks made no commitment about keeping jobs in Britain. 
 
The French government pledged on Wednesday to make its tax regime for expatriates the most favourable in Europe in a landgrab for London banking business. 
 
Goldman Sachs and Morgan Stanley have denied speculation they were poised to shift London-based staff and operations to Frankfurt 
 
Jamie Dimon, the head of JPMorgan Chase, said before the referendum that the bank could have to move up to 4,000 staff from the UK in the event of a Brexit vote. 
 
On Wednesday, the municipal authority for the City of London, the district in the capital that is home to many large banks, said the government needed to ensure EU exit talks preserved financial services firms&#39; &quot;passporting&quot; rights that allow them to use London as a base for EU-wide activities. 
 
Osborne, who was senior figure in the failed campaign to keep Britain in the EU, has spent years trying to expand London&#39;s role as a global hub for trade in China&#39;s renminbi and India&#39;s rupee, as well as Islamic finance. 
 
On Tuesday, he met British domestic banks, whose share prices have tumbled since the Brexit vote, and encouraged them to make more funds available for UK lending after the Bank of England eased capital rules. 
 
(Reuters)

The banks said they would work at helping London 'retain its position as the leading international financial centre'

Four US investment banks promised British finance minister George Osborne on Thursday that they would help London keep its top spot as a global financial centre following the country's vote to leave the European Union. Since the June 23 referendum there have been fears of an exodus from the City of London if access to the EU's single market becomes significantly harder. Banks like JPMorgan have said they could move thousands of jobs. On Thursday JP Morgan, Goldman Sachs, Bank of America Merrill Lynch and Morgan Stanley, as well as Britain's Asia-focused Standard Chartered said they would try to support London's financial sector. "Today we met and agreed that we would work together ... with a common aim to help London retain its position as the leading international financial centre," the banks said in a joint statement with Osborne. The statement said no other city in Europe had capital markets as deep as those of London, but the banks made no commitment about keeping jobs in Britain. The French government pledged on Wednesday to make its tax regime for expatriates the most favourable in Europe in a landgrab for London banking business. Goldman Sachs and Morgan Stanley have denied speculation they were poised to shift London-based staff and operations to Frankfurt Jamie Dimon, the head of JPMorgan Chase, said before the referendum that the bank could have to move up to 4,000 staff from the UK in the event of a Brexit vote. On Wednesday, the municipal authority for the City of London, the district in the capital that is home to many large banks, said the government needed to ensure EU exit talks preserved financial services firms' "passporting" rights that allow them to use London as a base for EU-wide activities. Osborne, who was senior figure in the failed campaign to keep Britain in the EU, has spent years trying to expand London's role as a global hub for trade in China's renminbi and India's rupee, as well as Islamic finance. On Tuesday, he met British domestic banks, whose share prices have tumbled since the Brexit vote, and encouraged them to make more funds available for UK lending after the Bank of England eased capital rules. (Reuters)

After Brexit, London gets a little help from 4 US banks

After half a year of strong oil price rises, Asian crude demand is slowing and by some measures falling, and many market participants suspect it is not just a cyclical phenomenon, but also a product of more permanent structural changes.

With years of annual economic growth of 7-10 per cent in China and similar recent figures from India, Asia-Pacific has overtaken the Americas to become the world&#39;s biggest oil consuming region, accounting for almost 40 per cent of global demand.

But an industry that has come to rely on Asia&#39;s booming thirst for oil could soon be scratching around for growth.

Thomson Reuters Eikon data shows that Asian crude oil tanker imports have fallen, albeit from record levels, for four straight months and by 12 per cent since March to around 82 million tonnes (20 million barrels per day), slightly below last year&#39;s levels.

Much of the surprise decline is explained by conditions in China, the region&#39;s biggest consumer, accounting for 27 per cent of Asia-Pacific demand and 13 per cent of global demand.

With its long-term growth outlook now camped perhaps permanently below 7 per&nbsp;cent, most analysts expect vehicle sales in China will slow accordingly.

They have already slipped to 2.1 million at the end of May, down from a peak of almost 2.8 million in December 2015.

Refiners across Asia said that was starting to hit their business.

&quot;Asian oil demand growth is slowing down. China, Asia&#39;s largest market, is experiencing sluggish demand,&quot; said a South Korean refiner.

As domestic refiners sell off surplus fuel, China&#39;s exports of diesel and gasoline, the main refined fuels for industrial and passenger vehicles, have both soared.

&quot;Asia refiners have already started to pull back ... and there are reports of (oil) cargoes struggling to sell,&quot; said Adam Longson of Morgan Stanley this week in a note to clients, adding that demand in the third quarter could fall further.

Ship brokers say traders have started chartering supertankers to store supplies that consumers can&#39;t absorb.

One key pillar of recent demand is never coming back. Analysts think China has nearly finished building its strategic petroleum reserves (SPR).

Oil analysts at JPMorgan estimated in a note to clients last week that the SPR was now at 400 million barrels, which they believed was close to capacity.

&quot;Our model suggests a 15 per cent month-on-month decline in China&#39;s crude oil net imports in September, or a loss of 1.2 million barrels versus August and 0.8 million barrels less from the 12-month average,&quot; they said. 
&nbsp;

EFFICIENCY SAVINGS

Structural changes in demand are not limited to China.

For Asia&#39;s most developed oil markets, Japan and South Korea, analysts say long-term demand will steadily fall.

Japan&#39;s oil consumption, once 6 million barrels per day (bpd) and 10 per cent of global demand, has fallen to not much more than 3.5 million bpd, or under 5 per cent of world consumption. It will fall further as government consolidates its refiners.

&quot;There are various factors. Nuclear power generation has restarted, pushing down energy demand. When nuclear plants shut down (after the 2011 Fukushima disaster), Japan imported lots of crude. Other factors include shrinking population, saturated status of automobiles and efficiency improvement,&quot; said Kaname Gokon, strategist at brokerage Okato Shoji.

The situation is similar in South Korea.

&quot;Korea&#39;s oil demand is at a standstill, and demand is expected to decrease because of greenhouse gas emissions policy and alternative fuel. On top of that, if a growing number of people switch to use electric cars, oil demand is bound to fall,&quot; said Moon Young-seok, senior researcher at state-run Korea Energy Economics Institute.

Even in India, the industry&#39;s big hope to compensate for slower demand in China, demand for new cars is tepid.

While Indian motorbike sales remain strong, the number of new cars sold has fallen below 215,000 per month, down from almost 260,000 in October and well below the monthly record of just over 300,000 more than four years ago.

While industry doesn&#39;t expect Asian oil demand to decline outright, they say the growth seen over the past decade may never be revisited.

The fuel economy standards of new cars, which stagnated below 30 miles per gallon (mpg) between 1980 and 2010, have improved to around 40 mpg now and are expected to rise to mid-50 mpg by the early 2020s, according to industry estimates. That&#39;s without considering the rise of hybrid or pure electric vehicles.

&quot;Energy efficiency will play a huge role in slowing the growth in global demand, as energy use per unit of economic output is likely to fall by 40 per cent (between 2014 and 2040),&quot; US oil giant ExxonMobil says in its 2016 outlook. 
 
(Reuters)

The slowing Asian demand for crude is not just a cyclical phenomenon, but the product of more permanent structural changes

After half a year of strong oil price rises, Asian crude demand is slowing and by some measures falling, and many market participants suspect it is not just a cyclical phenomenon, but also a product of more permanent structural changes. With years of annual economic growth of 7-10 per cent in China and similar recent figures from India, Asia-Pacific has overtaken the Americas to become the world's biggest oil consuming region, accounting for almost 40 per cent of global demand. But an industry that has come to rely on Asia's booming thirst for oil could soon be scratching around for growth. Thomson Reuters Eikon data shows that Asian crude oil tanker imports have fallen, albeit from record levels, for four straight months and by 12 per cent since March to around 82 million tonnes (20 million barrels per day), slightly below last year's levels. Much of the surprise decline is explained by conditions in China, the region's biggest consumer, accounting for 27 per cent of Asia-Pacific demand and 13 per cent of global demand. With its long-term growth outlook now camped perhaps permanently below 7 per cent, most analysts expect vehicle sales in China will slow accordingly. They have already slipped to 2.1 million at the end of May, down from a peak of almost 2.8 million in December 2015. Refiners across Asia said that was starting to hit their business. "Asian oil demand growth is slowing down. China, Asia's largest market, is experiencing sluggish demand," said a South Korean refiner. As domestic refiners sell off surplus fuel, China's exports of diesel and gasoline, the main refined fuels for industrial and passenger vehicles, have both soared. "Asia refiners have already started to pull back ... and there are reports of (oil) cargoes struggling to sell," said Adam Longson of Morgan Stanley this week in a note to clients, adding that demand in the third quarter could fall further. Ship brokers say traders have started chartering supertankers to store supplies that consumers can't absorb. One key pillar of recent demand is never coming back. Analysts think China has nearly finished building its strategic petroleum reserves (SPR). Oil analysts at JPMorgan estimated in a note to clients last week that the SPR was now at 400 million barrels, which they believed was close to capacity. "Our model suggests a 15 per cent month-on-month decline in China's crude oil net imports in September, or a loss of 1.2 million barrels versus August and 0.8 million barrels less from the 12-month average," they said. EFFICIENCY SAVINGS Structural changes in demand are not limited to China. For Asia's most developed oil markets, Japan and South Korea, analysts say long-term demand will steadily fall. Japan's oil consumption, once 6 million barrels per day (bpd) and 10 per cent of global demand, has fallen to not much more than 3.5 million bpd, or under 5 per cent of world consumption. It will fall further as government consolidates its refiners. "There are various factors. Nuclear power generation has restarted, pushing down energy demand. When nuclear plants shut down (after the 2011 Fukushima disaster), Japan imported lots of crude. Other factors include shrinking population, saturated status of automobiles and efficiency improvement," said Kaname Gokon, strategist at brokerage Okato Shoji. The situation is similar in South Korea. "Korea's oil demand is at a standstill, and demand is expected to decrease because of greenhouse gas emissions policy and alternative fuel. On top of that, if a growing number of people switch to use electric cars, oil demand is bound to fall," said Moon Young-seok, senior researcher at state-run Korea Energy Economics Institute. Even in India, the industry's big hope to compensate for slower demand in China, demand for new cars is tepid. While Indian motorbike sales remain strong, the number of new cars sold has fallen below 215,000 per month, down from almost 260,000 in October and well below the monthly record of just over 300,000 more than four years ago. While industry doesn't expect Asian oil demand to decline outright, they say the growth seen over the past decade may never be revisited. The fuel economy standards of new cars, which stagnated below 30 miles per gallon (mpg) between 1980 and 2010, have improved to around 40 mpg now and are expected to rise to mid-50 mpg by the early 2020s, according to industry estimates. That's without considering the rise of hybrid or pure electric vehicles. "Energy efficiency will play a huge role in slowing the growth in global demand, as energy use per unit of economic output is likely to fall by 40 per cent (between 2014 and 2040)," US oil giant ExxonMobil says in its 2016 outlook. (Reuters)

Oil industry losing burn of Asian demand

South Korea aims to regulate the increasingly common ownership of pets in a bid to promote an unsupervised sector that the government sees as economic growth opportunity, and to crack down on animal abuse and neglect. 
 
Measures announced on Thursday will enable South Koreans to legally operate services for pets such as animal cafes, hotels and funeral parlours, while imposing stiffer punishment on breeders found using unsanitary or inhumane methods. 
 
Pets were once rare in South Korea, a country where the consumption of dog meat was widespread though it has declined sharply during the rapid modernization of recent decades. 
 
&quot;We know we are a bit late, but we are aiming to become a developed country in terms of the pet industry,&quot; Kang Chong-suk, director of the finance ministry&#39;s general policy coordination division, said in a telephone interview. 
 
&quot;There were absolutely no regulations and many illegal activities were being carried out.&quot; 
 
Nearly 22 per cent of South Korean households last year had at least one pet, up from 17.4 per cent five years earlier, a trend fuelled by the rise in single-person households. 
 
At the same time, there has been a jump in the number of abandoned pets. 
 
The government expects the measures will help the industry increase revenues from 1.8 trillion Won ($1.56 billion) now to 5.8 trillion Won in 2020. 
 
Under the plan, animal funeral facilities will be legalised, addressing complaints from pet owners over current law that says dead pets must be discarded, like household rubbish, in plastic garbage bags. 
 
New laws will also make it possible to start pet-related businesses like hotels, cafes and training centres. 
 
Pet cafes, where human customers can mingle with dogs and cats while having a cup of coffee, are increasingly popular in South Korea even though current law forbids the sale of food where animals can roam. 
 
The government will also introduce a veterinary nursing license and encourage insurers to develop more pet insurance policies. 
 
The measures are part of broader efforts to bolster various industries, including halal and kosher food production, the housing market and sports, as the government tries to find more sources of growth. 
 
&#39;TOO MANY PETS&#39; 
 
Fines for abandoning pets will be raised threefold from 1 million Won, while government support for animal shelters will be increased. 
 
Last year, 82,000 pets were abandoned or lost in South Korea, straining its 307 shelters, according to the government. 
 
&quot;They should have started this process a long time ago,&quot; said Kwon Beom-suk, a veterinarian in Seoul. 
 
&quot;We have too many pets in South Korea even though the pet culture has not matured yet.&quot; 
 
Fines will also be increased for unregistered or abusive animal-breeding facilities.&nbsp;About 1,000 commercial dog breeders are now operating, more than 80 per cent illegally, according to the government. 
 
Thursday&#39;s announcement comes amid public outrage over television reports showing abuse of dogs at some so-called puppy mills, including non-veterinarians performing crude caesarean sections on pregnant dogs.&nbsp;Kang said the government&#39;s planning preceded the broadcasts. 
 
($1 = 1,154.6700 Won) 
 
(Reuters)

New measures would enable South Koreans to legally operate services for pets such as animal cafes, hotels and funeral parlours

South Korea aims to regulate the increasingly common ownership of pets in a bid to promote an unsupervised sector that the government sees as economic growth opportunity, and to crack down on animal abuse and neglect. Measures announced on Thursday will enable South Koreans to legally operate services for pets such as animal cafes, hotels and funeral parlours, while imposing stiffer punishment on breeders found using unsanitary or inhumane methods. Pets were once rare in South Korea, a country where the consumption of dog meat was widespread though it has declined sharply during the rapid modernization of recent decades. "We know we are a bit late, but we are aiming to become a developed country in terms of the pet industry," Kang Chong-suk, director of the finance ministry's general policy coordination division, said in a telephone interview. "There were absolutely no regulations and many illegal activities were being carried out." Nearly 22 per cent of South Korean households last year had at least one pet, up from 17.4 per cent five years earlier, a trend fuelled by the rise in single-person households. At the same time, there has been a jump in the number of abandoned pets. The government expects the measures will help the industry increase revenues from 1.8 trillion Won ($1.56 billion) now to 5.8 trillion Won in 2020. Under the plan, animal funeral facilities will be legalised, addressing complaints from pet owners over current law that says dead pets must be discarded, like household rubbish, in plastic garbage bags. New laws will also make it possible to start pet-related businesses like hotels, cafes and training centres. Pet cafes, where human customers can mingle with dogs and cats while having a cup of coffee, are increasingly popular in South Korea even though current law forbids the sale of food where animals can roam. The government will also introduce a veterinary nursing license and encourage insurers to develop more pet insurance policies. The measures are part of broader efforts to bolster various industries, including halal and kosher food production, the housing market and sports, as the government tries to find more sources of growth. 'TOO MANY PETS' Fines for abandoning pets will be raised threefold from 1 million Won, while government support for animal shelters will be increased. Last year, 82,000 pets were abandoned or lost in South Korea, straining its 307 shelters, according to the government. "They should have started this process a long time ago," said Kwon Beom-suk, a veterinarian in Seoul. "We have too many pets in South Korea even though the pet culture has not matured yet." Fines will also be increased for unregistered or abusive animal-breeding facilities. About 1,000 commercial dog breeders are now operating, more than 80 per cent illegally, according to the government. Thursday's announcement comes amid public outrage over television reports showing abuse of dogs at some so-called puppy mills, including non-veterinarians performing crude caesarean sections on pregnant dogs. Kang said the government's planning preceded the broadcasts. ($1 = 1,154.6700 Won) (Reuters)

South Korea aims to overhaul its pet sector

After a four-year bear market, sugar has found its sweet spot. 
 
Its steepest bull run in years has seen prices of US raw sugar, the global price benchmark, more than double in less than a year, making one of the smallest commodity markets one of the best performing so far this year, outpacing two of the biggest, gold and oil. 
 
Investors who have ridden the market to 2012 highs, betting on expectations of dwindling supplies from key growers like India and Thailand, are now wondering how much higher can the prices go, thus, still awaiting a long-anticipated deficit. 
 
&quot;It&#39;s uncertain how much further the run-up can go ... The upside may be limited to another 10 to 15 per cent,&quot; said David Martin, founder and managing member of Martin Fund Management LLC in New York which has $82 million of assets under management. 
 
He placed bullish options bets when sugar, currently over 20 cents per pound, broke through 17 cents per pound in May, reversing a longstanding bearish position. He said he is now positioned neither bullish or bearish. 
 
World demand is expected to exceed supply for the first time in six years this year as drought in India, the world&#39;s second-largest grower, and unfavourable weather elsewhere in Asia threatens output. 
 
But there is little sign yet of extreme nearby tightness to justify lofty prices above 20 cents, some say. 
 
On Friday, data showing a drop in speculators&#39; net long position offered the first sign of a potential waning appetite. The meager 270-lot decline marked the first time hedge funds have scaled back the record bullish bet they have held since May, worth some $6 billion. 
 
&quot;I imagine (a correction) could be quite violent,&quot; said Doug King, chief investment officer of Merchant Commodity Fund in London. &quot;There is no reason to believe the market could go to 25 cents. We don&#39;t have a shortage of sugar now.&quot; 
 
Still, some commodity trading advisors (CTAs) that typically rely on technical indicators see little in the charts to call an end to sugar&#39;s sizzling run just yet. 
 
Sameer Ahuja, founder and chief investment officer of Dera Capital Management in Harrison, New York, said he is watching for October futures to break a resistance at 21.25 cents, and then 24 cents, which would mark the highest since July 2012. 
 
&quot;We could be heading for levels seen in 2011,&quot; he said. 
 
DRAMATIC TURNAROUND 
 
For the CTAs that caught the run-up early, sugar&#39;s turnaround from seven-year lows around 10 cents per pound seen in August 2015 has been sweet. 
 
Sol Waksman, president and founder of BarclayHedge Ltd, an Iowa-based firm that tracks CTA performances, said Martin&#39;s was the best performer of the 51 agricultural funds he tracked through the end of May. 
 
Martin attributes that to exposure to sugar and coffee markets. The fund was up 17.5 per cent in the first five months of 2016, according to its website. 
 
By any measure, June saw a spectacular rally as cash continued to pile into the market. Turnover for the month hit 3.74 million lots, worth 190 million tonnes of sugar, the third highest, according to records going back almost four decades, as prices hit their highest in almost four years. 
 
Much now depends on top grower Brazil, where the harvest runs through December. 
 
Martin said he is watching the premium of nearby futures over prices further out, an indication of supply concern. The premium of the second-month March contract over the third-month spiked to a near five-year high this week. 
 
&quot;You could still put another three or four cents on this,&quot; said Jobe Moss, a broker with MCM Inc in Lubbock, Texas, whose interest in sugar has been renewed amid this year&#39;s rally. &quot;(But) I&#39;m not going to chase the market up right now.&quot; 
 
(Reuters)

World demand is expected to exceed supply for the first time in six years this year as unfavourable weather in Asia threatens output

After a four-year bear market, sugar has found its sweet spot. Its steepest bull run in years has seen prices of US raw sugar, the global price benchmark, more than double in less than a year, making one of the smallest commodity markets one of the best performing so far this year, outpacing two of the biggest, gold and oil. Investors who have ridden the market to 2012 highs, betting on expectations of dwindling supplies from key growers like India and Thailand, are now wondering how much higher can the prices go, thus, still awaiting a long-anticipated deficit. "It's uncertain how much further the run-up can go ... The upside may be limited to another 10 to 15 per cent," said David Martin, founder and managing member of Martin Fund Management LLC in New York which has $82 million of assets under management. He placed bullish options bets when sugar, currently over 20 cents per pound, broke through 17 cents per pound in May, reversing a longstanding bearish position. He said he is now positioned neither bullish or bearish. World demand is expected to exceed supply for the first time in six years this year as drought in India, the world's second-largest grower, and unfavourable weather elsewhere in Asia threatens output. But there is little sign yet of extreme nearby tightness to justify lofty prices above 20 cents, some say. On Friday, data showing a drop in speculators' net long position offered the first sign of a potential waning appetite. The meager 270-lot decline marked the first time hedge funds have scaled back the record bullish bet they have held since May, worth some $6 billion. "I imagine (a correction) could be quite violent," said Doug King, chief investment officer of Merchant Commodity Fund in London. "There is no reason to believe the market could go to 25 cents. We don't have a shortage of sugar now." Still, some commodity trading advisors (CTAs) that typically rely on technical indicators see little in the charts to call an end to sugar's sizzling run just yet. Sameer Ahuja, founder and chief investment officer of Dera Capital Management in Harrison, New York, said he is watching for October futures to break a resistance at 21.25 cents, and then 24 cents, which would mark the highest since July 2012. "We could be heading for levels seen in 2011," he said. DRAMATIC TURNAROUND For the CTAs that caught the run-up early, sugar's turnaround from seven-year lows around 10 cents per pound seen in August 2015 has been sweet. Sol Waksman, president and founder of BarclayHedge Ltd, an Iowa-based firm that tracks CTA performances, said Martin's was the best performer of the 51 agricultural funds he tracked through the end of May. Martin attributes that to exposure to sugar and coffee markets. The fund was up 17.5 per cent in the first five months of 2016, according to its website. By any measure, June saw a spectacular rally as cash continued to pile into the market. Turnover for the month hit 3.74 million lots, worth 190 million tonnes of sugar, the third highest, according to records going back almost four decades, as prices hit their highest in almost four years. Much now depends on top grower Brazil, where the harvest runs through December. Martin said he is watching the premium of nearby futures over prices further out, an indication of supply concern. The premium of the second-month March contract over the third-month spiked to a near five-year high this week. "You could still put another three or four cents on this," said Jobe Moss, a broker with MCM Inc in Lubbock, Texas, whose interest in sugar has been renewed amid this year's rally. "(But) I'm not going to chase the market up right now." (Reuters)

Sugar finds its sweet spot, but investors ask for how long?

The Federal Reserve of the United States decided to keep interest rates unchanged in its June policy meeting due to uncertainty in the labour market and the United Kingdom&#39;s referendum on membership in the European Union (EU), minutes of the Fed&#39;s latest monetary policy meeting showed on Wednesday. 
 
Most (members) judged it appropriate to avoid overweighting one or two labour market reports in their consideration of the economic outlook, but they indicated that recent slowing in payroll employment gains had increased their uncertainty about the likely pace of improvements in the labour market going forward, said the minutes of the Fed&#39;s June 14-15 meeting. 
 
The UK vote was the other consideration for the US central banking system to hold off on raising interest rates. 
 
Members noted the considerable uncertainty about the outcome of the vote and its potential economic and financial market consequences, said the minutes. 
 
The minutes also showed that Fed officials disagreed in their judgment of employment, inflation, and pace of interest rate hikes in the future. 
 
Some officials judged that labour market conditions were at or close to the maximum employment, and some moderation in employment gains was to be expected, while others observed that there could be a possible downshift in the pace of improvement in the labour market, in view of the recent slow job gains, decline in labour participation rate and no reduction in part-time employees. 
 
In regard to inflation outlook, some officials observed that core inflation had risen, while several others continued to see downside risk to inflation. 
 
Some officials emphasised that it should not be delayed too long to further raise its interest rate with the employment and inflation close to the central bank&#39;s targets, while a couple of officials noted that they would need to be more convinced that the economy is strong enough and that inflation is moving closer to the target. 
 
(Reuters)

The UK 'Brexit' vote impacted the decision not to increase interest rates

The Federal Reserve of the United States decided to keep interest rates unchanged in its June policy meeting due to uncertainty in the labour market and the United Kingdom's referendum on membership in the European Union (EU), minutes of the Fed's latest monetary policy meeting showed on Wednesday. Most (members) judged it appropriate to avoid overweighting one or two labour market reports in their consideration of the economic outlook, but they indicated that recent slowing in payroll employment gains had increased their uncertainty about the likely pace of improvements in the labour market going forward, said the minutes of the Fed's June 14-15 meeting. The UK vote was the other consideration for the US central banking system to hold off on raising interest rates. Members noted the considerable uncertainty about the outcome of the vote and its potential economic and financial market consequences, said the minutes. The minutes also showed that Fed officials disagreed in their judgment of employment, inflation, and pace of interest rate hikes in the future. Some officials judged that labour market conditions were at or close to the maximum employment, and some moderation in employment gains was to be expected, while others observed that there could be a possible downshift in the pace of improvement in the labour market, in view of the recent slow job gains, decline in labour participation rate and no reduction in part-time employees. In regard to inflation outlook, some officials observed that core inflation had risen, while several others continued to see downside risk to inflation. Some officials emphasised that it should not be delayed too long to further raise its interest rate with the employment and inflation close to the central bank's targets, while a couple of officials noted that they would need to be more convinced that the economy is strong enough and that inflation is moving closer to the target. (Reuters)

Uncertainty makes US Fed hold off interest rate hike

Chinese technology firm Alibaba&#39;s internet-connected car will set the Chinese e-commerce giant up to quickly introduce driverless vehicle technology, Chief Technology Officer Wang Jian said today.

Alibaba and the country&#39;s largest automaker SAIC Motor Corp demonstrated their jointly developed car equipped with the YunOS operating system, which can link up with smart phones, at an event in eastern China&#39;s Hangzhou today. The car is slated to go on sale later this year.

&quot;You&#39;ll quickly see driverless car technology resulting from this platform,&quot; Wang said on the sidelines of the event.

Among major tech&nbsp;companies, Alibaba is relatively late to offer a platform that can link a smart phone to a car, trailing platforms already launched by Alphabet&#39;s Google, Apple and Baidu.

But the race to commercialise driverless cars is far from over with experts predicting that a fully autonomous car will not hit the market until 2020 or later. 
 
(Reuters)

Driverless car technology will result from a platform which will link up cars with smart phones, said Alibaba's Chief Technology Officer

Chinese technology firm Alibaba's internet-connected car will set the Chinese e-commerce giant up to quickly introduce driverless vehicle technology, Chief Technology Officer Wang Jian said today. Alibaba and the country's largest automaker SAIC Motor Corp demonstrated their jointly developed car equipped with the YunOS operating system, which can link up with smart phones, at an event in eastern China's Hangzhou today. The car is slated to go on sale later this year. "You'll quickly see driverless car technology resulting from this platform," Wang said on the sidelines of the event. Among major tech companies, Alibaba is relatively late to offer a platform that can link a smart phone to a car, trailing platforms already launched by Alphabet's Google, Apple and Baidu. But the race to commercialise driverless cars is far from over with experts predicting that a fully autonomous car will not hit the market until 2020 or later. (Reuters)

China's Alibaba puts internet in cars, plans to take drivers out

Alibaba is relatively late to offer a platform linking smart phones to cars, trailing Google and Apple, but the race is far from over

Gold rose as much as 1 per cent today, hitting the highest in more than two years, as investors piled back into safe havens such as bullion amid renewed market jitters over Britain&#39;s decision to leave the European Union (EU).&nbsp; 
 
Asian shares also tumbled as fears over instability in the EU returned with a vengeance, sending the pound to three-decade low and hammering risky assets. 
 
Spot gold touched its highest since March 2014 at $1,371.40, and was trading up 0.9 per cent at $1,367.20 an ounce by 0401 GMT. It surpassed the $1,358.20 mark hit on June 24 in the immediate aftermath of the Brexit vote. 
 
US gold was up 0.8 per cent at $1,369.40. 
 
&quot;No one is able to understand how much risk is yet to be unravelled (from Brexit). That is an uncertainty that no one likes. This is what is driving gold prices higher,&quot; said Helen Lau, an analyst at Argonaut Securities in Hong Kong. 
 
Yellow metal is on track to log its biggest yearly gain since 2010&nbsp; 
 
The Bank of England took steps on Tuesday to ensure British banks keep lending as the financial consequences of the decision to leave the EU began to materialise. 
 
The yellow metal, often favoured as a hedge against economic and financial uncertainty, has risen about 29 per cent this year and is on track to log its biggest yearly gain since 2010. 
 
Further boosting gold, were comments from New York Federal Reserve President William Dudley, who said that the central bank can be patient on raising interest rates due to low inflation and uncertainties over US economic prospects. 
 
New orders for US factory goods fell in May on weak demand for transportation and defence capital goods, but growing order backlogs and lean inventories suggested the worst of the manufacturing downturn was probably over. 
 
Investors will be watching out for signs on the US Federal Reserve&#39;s thinking on rates from minutes of its June 14-15 meeting due later in the day. 
 
Holdings in SPDR Gold Trust, the world&#39;s largest gold-backed exchange-traded fund, increased 3.02 per cent to 982.72 tonnes on Tuesday, the highest since June 2013. 
 
SPDR gold holdings have jumped more than 50 per cent this year so far, heading for biggest annual rise since 2006. 
 
Spot silver&#39;s rally hit a bump on Tuesday as the metal fell 2 per cent, its biggest one-day loss in about three weeks. It was up 1.7 per cent at $20.26. 
 
Among other precious metals, platinum, which was trading at two-month highs, edged 0.2 per cent lower to $1,070.24 an ounce. 
 
Palladium was up 0.3 per cent at $599.47. 
 
(Reuters)&nbsp;

Asian shares also tumbled as fears over instability in the EU returned with a vengeance, sending the pound to three-decade low

Gold rose as much as 1 per cent today, hitting the highest in more than two years, as investors piled back into safe havens such as bullion amid renewed market jitters over Britain's decision to leave the European Union (EU). Asian shares also tumbled as fears over instability in the EU returned with a vengeance, sending the pound to three-decade low and hammering risky assets. Spot gold touched its highest since March 2014 at $1,371.40, and was trading up 0.9 per cent at $1,367.20 an ounce by 0401 GMT. It surpassed the $1,358.20 mark hit on June 24 in the immediate aftermath of the Brexit vote. US gold was up 0.8 per cent at $1,369.40. "No one is able to understand how much risk is yet to be unravelled (from Brexit). That is an uncertainty that no one likes. This is what is driving gold prices higher," said Helen Lau, an analyst at Argonaut Securities in Hong Kong. Yellow metal is on track to log its biggest yearly gain since 2010 The Bank of England took steps on Tuesday to ensure British banks keep lending as the financial consequences of the decision to leave the EU began to materialise. The yellow metal, often favoured as a hedge against economic and financial uncertainty, has risen about 29 per cent this year and is on track to log its biggest yearly gain since 2010. Further boosting gold, were comments from New York Federal Reserve President William Dudley, who said that the central bank can be patient on raising interest rates due to low inflation and uncertainties over US economic prospects. New orders for US factory goods fell in May on weak demand for transportation and defence capital goods, but growing order backlogs and lean inventories suggested the worst of the manufacturing downturn was probably over. Investors will be watching out for signs on the US Federal Reserve's thinking on rates from minutes of its June 14-15 meeting due later in the day. Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, increased 3.02 per cent to 982.72 tonnes on Tuesday, the highest since June 2013. SPDR gold holdings have jumped more than 50 per cent this year so far, heading for biggest annual rise since 2006. Spot silver's rally hit a bump on Tuesday as the metal fell 2 per cent, its biggest one-day loss in about three weeks. It was up 1.7 per cent at $20.26. Among other precious metals, platinum, which was trading at two-month highs, edged 0.2 per cent lower to $1,070.24 an ounce. Palladium was up 0.3 per cent at $599.47. (Reuters)

Gold at highest in over two years over renewed Brexit concerns

France and Britain were vying for fifth place on the list of the world&#39;s biggest economies on Wednesday, with France nudging ahead after a renewed slump in the Pound in the wake of the Brexit vote, Reuters calculations showed. 
 
Britain&#39;s gross domestic product stood at 1.864 trillion Pounds in 2015, according to the last available figures from the International Monetary Fund. 
 
The average exchange rate for the year in question is commonly used for comparisons between countries. But using the current exchange rate, France has pulled slightly ahead. 
 
With the Pound falling below 1.17 Euros overnight for the first time since 2013, that means the size of the British economy in 2015 is now equivalent to 2.172 trillion Euros - less than France&#39;s official GDP of 2.182 trillion Euros last year. 
 
Britain&#39;s vote in a referendum on June 23 to quit the EU has hammered financial markets, rattled businesses and punished the pound, which was trading at 1.1650 Euros as of 1440 GMT. 
 
But volatile exchange rates meant the figures were hard to pin down. Britain briefly regained fifth spot after the pound broke above 1.17 Euros for a few hours on Wednesday, only to sag again in mid-afternoon trade. 
 
Britain and France, which have similar populations, have swapped positions before in the rankings. 
 
In 2014 Britain overtook France, six years after the financial crisis caused the pound to fall and allowed France to regain a crown it had lost in 1997. 
 
(Reuters)

The size of the British economy in 2015 is now 2.172 trillion Euros - less than France's official GDP of 2.182 trillion Euros last year

France and Britain were vying for fifth place on the list of the world's biggest economies on Wednesday, with France nudging ahead after a renewed slump in the Pound in the wake of the Brexit vote, Reuters calculations showed. Britain's gross domestic product stood at 1.864 trillion Pounds in 2015, according to the last available figures from the International Monetary Fund. The average exchange rate for the year in question is commonly used for comparisons between countries. But using the current exchange rate, France has pulled slightly ahead. With the Pound falling below 1.17 Euros overnight for the first time since 2013, that means the size of the British economy in 2015 is now equivalent to 2.172 trillion Euros - less than France's official GDP of 2.182 trillion Euros last year. Britain's vote in a referendum on June 23 to quit the EU has hammered financial markets, rattled businesses and punished the pound, which was trading at 1.1650 Euros as of 1440 GMT. But volatile exchange rates meant the figures were hard to pin down. Britain briefly regained fifth spot after the pound broke above 1.17 Euros for a few hours on Wednesday, only to sag again in mid-afternoon trade. Britain and France, which have similar populations, have swapped positions before in the rankings. In 2014 Britain overtook France, six years after the financial crisis caused the pound to fall and allowed France to regain a crown it had lost in 1997. (Reuters)

After Pound drops, France overtakes Britain as world's fifth-largest economy

The pound tumbled to a new 31-year low on Wednesday, dipping below $1.28 at one point before recovering a little, as investors shunned the currency after Britain&#39;s vote to leave the European Union. 
 
The pound, one of the main vehicles through which financial markets can express concern over the Brexit vote, fell as low as $1.2798 in Asian trading, its lowest since June 1985, before recovering to about $1.2965. That still left it 13 per cent below its levels before the June 23 referendum, and about 0.4 per cent down on the day. 
 
Against the Euro, Sterling hit a three-year trough, trading as weakly as at 86.29 pence per Euro before climbing back to about 85.25 pence, also down 0.3 per cent on the day. 
 
Worries have grown in the past two days about financial stress, highlighted by the Bank of England on Tuesday and by the suspension of trading by three of Britain&#39;s biggest property funds, following an increased number of investor redemption since the referendum. 
 
&quot;The pound is still very volatile after the Brexit vote, and still vulnerable to the downside,&quot; said Bank of Tokyo-Mitsubishi UFJ currency economist Lee Hardman. 
 
&quot;Yesterday the main trigger was the reports of signs of distress in the commercial real estate market, which the Bank of England highlighted as one of the financial stability risks in the UK. That created a fairly large sell-off...and Sterling is just recovering some of those falls.&quot; 
 
The latest of the property funds to announce a suspension in customer withdrawals was M&amp;G, the fund management arm of insurer Prudential, which made the announcement after the London market close on Tuesday. 
 
&quot;Clearly Asia came in and didn&#39;t like what it saw in the news flow,&quot; said UBS Wealth Management currency strategist Geoffrey Yu, adding that many international investors also have large exposures to the UK property market. 
 
The Bank of England also expressed concern on Tuesday about a fall in investor demand for British assets, which could make it harder to finance Britain&#39;s large current account deficit, piling further pressure on the pound. 
 
Rate cuts 
 
Next week the BoE will make a decision on interest rates, which are already at record lows. Investors are pricing in a 25 basis point rate cut in August, which is also helping to drive down the pound, but some reckon a cut could come next week. 
 
A Reuters poll of more than 60 foreign exchange strategists forecast the pound at $1.27 by year end from Monday&#39;s close of around $1.30. 
 
&quot;The market is still likely under-pricing BoE easing, with our economists forecasting a 25 basis point rate cut next week followed by a 25 basis point cut at the August meeting,&quot; wrote BNP Paribas strategists in a research note, adding that they also expected an asset-purchase programme to be announced at the November meeting. 
 
Yields on British 10, 20 and 30-year government bonds sank to fresh record lows, extending their slide since the day after the shock referendum result. 
 
The yield on 10-year gilts fell as low as 0.731 per cent, almost half its level on June 23, when Britons were voting in the referendum which many investors had expected to keep Britain in the EU. 
 
(Reuters)

The Pound fell as low as $1.2798 in Asian trading on Wednesday, its lowest since June 1985

The pound tumbled to a new 31-year low on Wednesday, dipping below $1.28 at one point before recovering a little, as investors shunned the currency after Britain's vote to leave the European Union. The pound, one of the main vehicles through which financial markets can express concern over the Brexit vote, fell as low as $1.2798 in Asian trading, its lowest since June 1985, before recovering to about $1.2965. That still left it 13 per cent below its levels before the June 23 referendum, and about 0.4 per cent down on the day. Against the Euro, Sterling hit a three-year trough, trading as weakly as at 86.29 pence per Euro before climbing back to about 85.25 pence, also down 0.3 per cent on the day. Worries have grown in the past two days about financial stress, highlighted by the Bank of England on Tuesday and by the suspension of trading by three of Britain's biggest property funds, following an increased number of investor redemption since the referendum. "The pound is still very volatile after the Brexit vote, and still vulnerable to the downside," said Bank of Tokyo-Mitsubishi UFJ currency economist Lee Hardman. "Yesterday the main trigger was the reports of signs of distress in the commercial real estate market, which the Bank of England highlighted as one of the financial stability risks in the UK. That created a fairly large sell-off...and Sterling is just recovering some of those falls." The latest of the property funds to announce a suspension in customer withdrawals was M&G, the fund management arm of insurer Prudential, which made the announcement after the London market close on Tuesday. "Clearly Asia came in and didn't like what it saw in the news flow," said UBS Wealth Management currency strategist Geoffrey Yu, adding that many international investors also have large exposures to the UK property market. The Bank of England also expressed concern on Tuesday about a fall in investor demand for British assets, which could make it harder to finance Britain's large current account deficit, piling further pressure on the pound. Rate cuts Next week the BoE will make a decision on interest rates, which are already at record lows. Investors are pricing in a 25 basis point rate cut in August, which is also helping to drive down the pound, but some reckon a cut could come next week. A Reuters poll of more than 60 foreign exchange strategists forecast the pound at $1.27 by year end from Monday's close of around $1.30. "The market is still likely under-pricing BoE easing, with our economists forecasting a 25 basis point rate cut next week followed by a 25 basis point cut at the August meeting," wrote BNP Paribas strategists in a research note, adding that they also expected an asset-purchase programme to be announced at the November meeting. Yields on British 10, 20 and 30-year government bonds sank to fresh record lows, extending their slide since the day after the shock referendum result. The yield on 10-year gilts fell as low as 0.731 per cent, almost half its level on June 23, when Britons were voting in the referendum which many investors had expected to keep Britain in the EU. (Reuters)

Pound falls to 31-year low as investors shun currency

The Bank of England (BoE) took steps to ensure British banks can keep lending and insurers do not dump corporate bonds in the &#39;challenging&#39; period that is likely to follow the country&#39;s shock vote to leave the European Union (EU). 
 
The central bank said it would lower the amount of capital banks are required to hold in reserve, freeing up an extra 150 billion Pounds for lending in a reversal of a decision it took earlier this year, when it started tightening screws on lenders because Britain&#39;s economy appeared on course for more growth. 
 
BoE Governor Mark Carney said the move represented a &#39;major change&#39; that would help the economy to weather the Brexit hit. 
 
&quot;It means that three quarters of UK banks, accounting for 90 per cent of the stock of UK lending, will immediately have greater flexibility to supply credit to UK households and firms,&quot; he told reporters. 
 
Sterling dropped more than 10 per cent against the dollar and banks&#39; share prices fell by a fifth after Britons voted on June 23 to leave the EU, prompting Prime Minister David Cameron to say he would step down. 
 
Sterling touched a new, 31-year low against the US dollar earlier on Tuesday, hurt by Standard Life&#39;s suspension of trading in its British real estate fund but recovered some of its losses after the BoE announcement and Carney&#39;s comments. 
 
Twenty and 30-year British government bond yields briefly touched new record lows. 
 
With uncertainty about the future of George Osborne as finance minister, more responsibility has fallen on Carney and his fellow BoE policymakers to steer Britain through its worst political crisis in decades. 
 
Fresh signs of weakness in the economy appeared on Tuesday. 
 
Business confidence fell sharply in the days after the vote to leave the EU, a survey showed, and retailer John Lewis said its sales grew more slowly last week. 
 
Furthermore, Britain&#39;s dominant services industry grew at its slowest pace in three years in June, according to a survey conducted mostly before the referendum. 
 
The central bank said it was closely monitoring investors&#39; willingness to fund Britain&#39;s large current account deficit after the shock outcome of the vote, as well as high levels of household debt and the subdued global economy. 
 
Carney said the fall in sterling should help ease the balance of payments shortfall but the pace of investment would also be important. 
 
The central bank said risks it had identified before the referendum were starting to materialise, including lower demand for commercial property. 
 
BREXIT RISKS 
 
The announcement by the BoE on bank capital, after two meetings of its Financial Policy Committee since the referendum, followed an unusually explicit comment by Carney last week that he believed the BoE would ease monetary policy soon too. 
 
&quot;These measures are really about Carney aligning the Bank of England&#39;s guns in case the UK economy enters a downturn,&quot; Aberdeen Asset Management Investment Manager James Athey said. 
 
&quot;He&#39;s not waiting for anything bad to happen but rather acting in case it does.&quot; 
 
The BoE said risks it had identified before the vote were materialising, including lower demand for commercial property. 
 
As part of its announcement on Tuesday, the BoE reversed a decision it took in March to increase the amount of capital banks must hold against cyclical upturns in the credit cycle. 
 
Holding the so-called counter-cyclical capital buffer (CCB) at zero until at least June 2017 would reduce banks&#39; capital requirements by 5.7 billion Pounds, potentially freeing up an extra 150 billion Pounds for lending, the BoE said. 
 
The BoE also gave insurers more time to adjust to new EU capital rules to avoid pressuring them to dump corporate bonds and avoid high capital charges as interest rates plunge. 
 
Before the referendum, consumer borrowing was rising at its fastest rate in a decade while mortgage lending had eased slightly as higher taxes on landlords and second-home buyers took effect in April. 
 
The BoE said it would keep a close eye on the buy-to-let mortgage sector, in case landlords sell up as property prices fall, as well as on the rising numbers of vulnerable indebted households. 
 
It expressed concern about a fall in investor demand for British assets - which could make it harder for the country to finance its large current account deficit - as well as trouble in commercial real estate making it harder for businesses to use their property as collateral to obtain loans. 
 
(Reuters)

The central bank said it would lower the amount of capital banks are required to hold in reserve, freeing up an extra 150 billion Pounds

The Bank of England (BoE) took steps to ensure British banks can keep lending and insurers do not dump corporate bonds in the 'challenging' period that is likely to follow the country's shock vote to leave the European Union (EU). The central bank said it would lower the amount of capital banks are required to hold in reserve, freeing up an extra 150 billion Pounds for lending in a reversal of a decision it took earlier this year, when it started tightening screws on lenders because Britain's economy appeared on course for more growth. BoE Governor Mark Carney said the move represented a 'major change' that would help the economy to weather the Brexit hit. "It means that three quarters of UK banks, accounting for 90 per cent of the stock of UK lending, will immediately have greater flexibility to supply credit to UK households and firms," he told reporters. Sterling dropped more than 10 per cent against the dollar and banks' share prices fell by a fifth after Britons voted on June 23 to leave the EU, prompting Prime Minister David Cameron to say he would step down. Sterling touched a new, 31-year low against the US dollar earlier on Tuesday, hurt by Standard Life's suspension of trading in its British real estate fund but recovered some of its losses after the BoE announcement and Carney's comments. Twenty and 30-year British government bond yields briefly touched new record lows. With uncertainty about the future of George Osborne as finance minister, more responsibility has fallen on Carney and his fellow BoE policymakers to steer Britain through its worst political crisis in decades. Fresh signs of weakness in the economy appeared on Tuesday. Business confidence fell sharply in the days after the vote to leave the EU, a survey showed, and retailer John Lewis said its sales grew more slowly last week. Furthermore, Britain's dominant services industry grew at its slowest pace in three years in June, according to a survey conducted mostly before the referendum. The central bank said it was closely monitoring investors' willingness to fund Britain's large current account deficit after the shock outcome of the vote, as well as high levels of household debt and the subdued global economy. Carney said the fall in sterling should help ease the balance of payments shortfall but the pace of investment would also be important. The central bank said risks it had identified before the referendum were starting to materialise, including lower demand for commercial property. BREXIT RISKS The announcement by the BoE on bank capital, after two meetings of its Financial Policy Committee since the referendum, followed an unusually explicit comment by Carney last week that he believed the BoE would ease monetary policy soon too. "These measures are really about Carney aligning the Bank of England's guns in case the UK economy enters a downturn," Aberdeen Asset Management Investment Manager James Athey said. "He's not waiting for anything bad to happen but rather acting in case it does." The BoE said risks it had identified before the vote were materialising, including lower demand for commercial property. As part of its announcement on Tuesday, the BoE reversed a decision it took in March to increase the amount of capital banks must hold against cyclical upturns in the credit cycle. Holding the so-called counter-cyclical capital buffer (CCB) at zero until at least June 2017 would reduce banks' capital requirements by 5.7 billion Pounds, potentially freeing up an extra 150 billion Pounds for lending, the BoE said. The BoE also gave insurers more time to adjust to new EU capital rules to avoid pressuring them to dump corporate bonds and avoid high capital charges as interest rates plunge. Before the referendum, consumer borrowing was rising at its fastest rate in a decade while mortgage lending had eased slightly as higher taxes on landlords and second-home buyers took effect in April. The BoE said it would keep a close eye on the buy-to-let mortgage sector, in case landlords sell up as property prices fall, as well as on the rising numbers of vulnerable indebted households. It expressed concern about a fall in investor demand for British assets - which could make it harder for the country to finance its large current account deficit - as well as trouble in commercial real estate making it harder for businesses to use their property as collateral to obtain loans. (Reuters)

Bank of England takes steps to ensure British banks keep lending

Shipping Corporation of India (SCI) will resume sailing to Iran this month after a four-year gap, transporting an oil cargo for a state-run refiner, the chairman of India&#39;s biggest shipping company said on Tuesday. 
 
SCI stopped sailing to Iran in 2012 when sanctions targeting Iran&#39;s nuclear programme prevented the company obtaining insurance cover for oil and other shipments. 
 
Following the lifting in January of some western sanctions, International Group of Protection and Indemnity (P&amp;I) Clubs -- which generally insure the tanker market -- have been able to obtain &quot;fall-back cover&quot; from non-US markets.&nbsp; 
 
&quot;The level of cover provided by the fall-back cover has been recently raised to 100 million Euros ($111.30 million), which is fairly high and provides substantial levels of protection,&quot; said BB Sinha, Chairman &amp; Managing Director of SCI. 
 
SCI will this month use one of its Suezmax-sized tankers to ship an oil cargo for state-refiner Hindustan Petroleum Corp Ltd (HPCL) from Iran. 
 
&quot;It is not yet decided ... which SCI-owned vessel is going to Iran,&quot; Sinha said.&nbsp; 
 
SCI had contracts with HPCL, Bharat Petroleum Corp (BPCL) and Mangalore Refinery and Petrochemicals Ltd to ship crude from Iran, he said. 
 
HPCL will resume Iranian oil imports from July after three years because insurance was now available for plants processing Iranian oil, its head of refineries BK Namdeo said. 
 
Similarly, BPCL&#39;s head of refineries, BK Datta, confirmed it also planned to import an oil cargo from Iran this month, although it would use the Panama-flagged tanker &quot;Vito&quot;. 
 
Iran currently supplies bulk of its oil to India using its own vessels&nbsp; 
 
India&#39;s Iranian oil imports are set to hit a seven-year high in the year from April 1, with refiners buying at least 400,000 barrels per day. 
 
Iran currently supplies the bulk of its oil to India using its own vessels. 
 
Some Indian refiners such as Essar Oil and Reliance Industries have already begun importing Iranian oil in tankers flagged from other countries. 
 
Sinha hoped the lifting of sanctions would boost trade between India and Iran. SCI returned to profit in the 2014-15 fiscal year after suffering three years of net losses.&nbsp; 
 
SCI aims to expand its fleet by allocating about 10 billion Rupees ($148.42 million) for capital expenditure in the current fiscal year to March 2017 from nil last year, he said. 
 
&quot;Fleet expansion is necessary as India&#39;s foreign trade is also increasing with a growing economy,&quot; he said, adding that 60-70 per cent of the capex would be funded through foreign loans and the remainder internally. 
 
Sinha said the company aimed to buy second-hand ships so they could be deployed quickly. 
 
(Reuters)

India's Iranian oil imports are set to hit a seven-year high in the year with refiners buying at least 400,000 barrels per day

Shipping Corporation of India (SCI) will resume sailing to Iran this month after a four-year gap, transporting an oil cargo for a state-run refiner, the chairman of India's biggest shipping company said on Tuesday. SCI stopped sailing to Iran in 2012 when sanctions targeting Iran's nuclear programme prevented the company obtaining insurance cover for oil and other shipments. Following the lifting in January of some western sanctions, International Group of Protection and Indemnity (P&I) Clubs -- which generally insure the tanker market -- have been able to obtain "fall-back cover" from non-US markets. "The level of cover provided by the fall-back cover has been recently raised to 100 million Euros ($111.30 million), which is fairly high and provides substantial levels of protection," said BB Sinha, Chairman & Managing Director of SCI. SCI will this month use one of its Suezmax-sized tankers to ship an oil cargo for state-refiner Hindustan Petroleum Corp Ltd (HPCL) from Iran. "It is not yet decided ... which SCI-owned vessel is going to Iran," Sinha said. SCI had contracts with HPCL, Bharat Petroleum Corp (BPCL) and Mangalore Refinery and Petrochemicals Ltd to ship crude from Iran, he said. HPCL will resume Iranian oil imports from July after three years because insurance was now available for plants processing Iranian oil, its head of refineries BK Namdeo said. Similarly, BPCL's head of refineries, BK Datta, confirmed it also planned to import an oil cargo from Iran this month, although it would use the Panama-flagged tanker "Vito". Iran currently supplies bulk of its oil to India using its own vessels India's Iranian oil imports are set to hit a seven-year high in the year from April 1, with refiners buying at least 400,000 barrels per day. Iran currently supplies the bulk of its oil to India using its own vessels. Some Indian refiners such as Essar Oil and Reliance Industries have already begun importing Iranian oil in tankers flagged from other countries. Sinha hoped the lifting of sanctions would boost trade between India and Iran. SCI returned to profit in the 2014-15 fiscal year after suffering three years of net losses. SCI aims to expand its fleet by allocating about 10 billion Rupees ($148.42 million) for capital expenditure in the current fiscal year to March 2017 from nil last year, he said. "Fleet expansion is necessary as India's foreign trade is also increasing with a growing economy," he said, adding that 60-70 per cent of the capex would be funded through foreign loans and the remainder internally. Sinha said the company aimed to buy second-hand ships so they could be deployed quickly. (Reuters)

India's biggest shipping firm to resume sailing to Iran after four-year gap

The town of Hershey, Pennsylvania, calls itself the &quot;sweetest place on earth.&quot; 
 
But if chocolate giant Hershey Co. considers any new acquisition offer in the coming weeks, it could face bitter opposition from some in its namesake town, where residents have prospered from its presence and tend to be fierce defenders of its independence. 
 
Over decades, Hershey Trust has become increasingly involved with locals&nbsp; 
 
The impact of such views goes beyond sentimental in the wake of Mondelez International Inc&#39;s $23 billion bid to buy the company, which Hershey said on June 30 it had rejected. The town of Hershey, where the company&#39;s staunchest loyalists are referred to as &quot;Hershey-ites&quot;, has real influence over corporate decisions. 
 
The Hershey Trust, a $12 billion school charity and the company&#39;s controlling shareholder, has become increasingly involved in the local community over the decades, and has appeared to listen to its concerns in the past. 
 
Pennsylvania&#39;s attorney general, who supervises the trust and can ask a court to block any deal, holds an elected office and is sensitive to local concerns, though the current office holder is not planning to seek reelection. 
 
Pennsylvania law requires any charitable trust to consider, when selling an asset, the &ldquo;special relationship of the asset and its economic impact as a principal business enterprise on the community&rdquo; and the &ldquo;special value&rdquo; of its ties to the community. 
 
Since the company was founded by Milton Hershey 122 years ago, residents here have fought many plans that would have changed Hershey Co. and, in turn, a community built around one of the world&#39;s most famous confectioners. 
 
Although the Hershey Trust rejected the bid by the maker of Oreos cookies, a spike in Hershey&#39;s share price above the bid of $107 per share has indicated investors expect a new offer. 
 
Many in the rural town of around 14,000 people voiced apprehension to Reuters about a sale, despite apparent reassurances from Mondelez. 
 
The food and beverage multinational has offered to keep Hershey&#39;s name, move its headquarters to Hershey, and preserve jobs, according to people familiar with the matter who declined to be identified because Mondelez has not disclosed details of the bid. Most residents declined to give their full names, citing local sensitivities around discussing the firm, which employs 4,800 people here. 
 
&quot;I don&#39;t think they should sell the company,&quot; said a 76-year-old woman who gave her name as G.C., as she guided visitors through Hershey&#39;s Chocolate World, a sprawling candy store stocked with giant chocolate bars. 
 
&quot;Hershey is Hershey. It should always be Milton Hershey. He did good for the community,&quot; said the woman, who has worked at Chocolate World for eight years. &nbsp; &nbsp; 
 
&#39;It&#39;s always been Hershey&#39; 
 
A 3.5-hour train ride from New York, Hershey stretches out across verdant fields between delectably named streets such as Chocolate Avenue and Cocoa Avenue. Between well-tended lawns and street lamps shaped like the popular Hershey&#39;s Kisses Chocolate, Hershey is dotted with landmarks from a theatre to a cemetery that are tied to the confectioner. 
 
Residents point to houses built by Milton Hershey for his factory workers and extol the &quot;Hershey legacy&quot;, where a successful business looks after the people, the way Hershey did at the height of the Great Depression in the 1930s by embarking on a construction spree in town to create jobs. 
 
House prices and income levels in Hershey are substantially higher compared to neighbouring towns in Pennsylvania, according to government data. 
 
Today, the heart of the &quot;Hershey legacy&quot; is arguably found in the Milton Hershey School, a private boarding school for around 2,000 students from low-income families. Their education and living expenses are paid for by the Hershey Trust, which is funded by the Trust&#39;s stake in the chocolate maker. 
 
&quot;Everyone who worked for Mr Hershey always had a job,&quot; said Ernie, a 69-year-old Hershey worker who declined to give his last name. &quot;It&#39;s always been Hershey,&quot; he affirmed.&nbsp; 
 
Asked about the town&#39;s role in the company, Hershey Co. said: &quot;We are proud of the company&#39;s rich heritage and the Hershey community.&quot; Spokespeople at Mondelez were not immediately available for a comment. 
 
The town&#39;s devotion to its roots has led to confrontations in the past. Back in 2002 when Wm. Wrigley Jr., renowned for its chewing gum, attempted to buy Hershey for $12.5 billion, irate local residents signed petitions and staged rallies to stop plans to sell the company. 
 
The then attorney general sought to block the deal, prompting the Trust to call off the sale at the last minute. 
 
When some residents complained about the planned demolition of parts of an old Hershey factory in 2012, the company went ahead anyway. 
 
&quot;People like things to stay the way they are,&quot; said a 63-year-old resident who has lived in Hershey since 1978. 
 
To be sure, not all Hershey residents are attached to the status quo. Some younger residents voiced indifference to the future of the candy maker, saying practical business considerations should take precedence. 
 
On paper, a sale to Mondelez could benefit Hershey. 
 
Hershey has a strong US presence while Mondelez has a global network. A marriage of the two would create the world&#39;s largest confectionary company with an estimated 18 per cent of the market share, said market research firm Euromonitor International Ltd. 
 
While Mondelez has vowed to keep Hershey&#39;s name and preserve jobs, some said such promises would ring empty with loyal 
&quot;Hershey-ites.&quot; 
 
US food giant Kraft, now known as Kraft Heinz Co, drew controversy in 2010 after it shut a factory in southwest England following its takeover of Cadbury, now owned by Mondelez, reneging on an earlier promise to keep the factory open. 
 
&quot;Would I like it to be sold? No,&quot; said the 63-year-old resident. 
 
&quot;There is the legacy and the history of Mr Hershey, and what becomes of the Trust? I don&#39;t know what will become of the school and the Trust.&quot; 
 
(Reuters)

In case of acquisition, Hershey could face opposition from residents who have prospered from company's presence in the 'sweetest' town

The town of Hershey, Pennsylvania, calls itself the "sweetest place on earth." But if chocolate giant Hershey Co. considers any new acquisition offer in the coming weeks, it could face bitter opposition from some in its namesake town, where residents have prospered from its presence and tend to be fierce defenders of its independence. Over decades, Hershey Trust has become increasingly involved with locals The impact of such views goes beyond sentimental in the wake of Mondelez International Inc's $23 billion bid to buy the company, which Hershey said on June 30 it had rejected. The town of Hershey, where the company's staunchest loyalists are referred to as "Hershey-ites", has real influence over corporate decisions. The Hershey Trust, a $12 billion school charity and the company's controlling shareholder, has become increasingly involved in the local community over the decades, and has appeared to listen to its concerns in the past. Pennsylvania's attorney general, who supervises the trust and can ask a court to block any deal, holds an elected office and is sensitive to local concerns, though the current office holder is not planning to seek reelection. Pennsylvania law requires any charitable trust to consider, when selling an asset, the “special relationship of the asset and its economic impact as a principal business enterprise on the community” and the “special value” of its ties to the community. Since the company was founded by Milton Hershey 122 years ago, residents here have fought many plans that would have changed Hershey Co. and, in turn, a community built around one of the world's most famous confectioners. Although the Hershey Trust rejected the bid by the maker of Oreos cookies, a spike in Hershey's share price above the bid of $107 per share has indicated investors expect a new offer. Many in the rural town of around 14,000 people voiced apprehension to Reuters about a sale, despite apparent reassurances from Mondelez. The food and beverage multinational has offered to keep Hershey's name, move its headquarters to Hershey, and preserve jobs, according to people familiar with the matter who declined to be identified because Mondelez has not disclosed details of the bid. Most residents declined to give their full names, citing local sensitivities around discussing the firm, which employs 4,800 people here. "I don't think they should sell the company," said a 76-year-old woman who gave her name as G.C., as she guided visitors through Hershey's Chocolate World, a sprawling candy store stocked with giant chocolate bars. "Hershey is Hershey. It should always be Milton Hershey. He did good for the community," said the woman, who has worked at Chocolate World for eight years. 'It's always been Hershey' A 3.5-hour train ride from New York, Hershey stretches out across verdant fields between delectably named streets such as Chocolate Avenue and Cocoa Avenue. Between well-tended lawns and street lamps shaped like the popular Hershey's Kisses Chocolate, Hershey is dotted with landmarks from a theatre to a cemetery that are tied to the confectioner. Residents point to houses built by Milton Hershey for his factory workers and extol the "Hershey legacy", where a successful business looks after the people, the way Hershey did at the height of the Great Depression in the 1930s by embarking on a construction spree in town to create jobs. House prices and income levels in Hershey are substantially higher compared to neighbouring towns in Pennsylvania, according to government data. Today, the heart of the "Hershey legacy" is arguably found in the Milton Hershey School, a private boarding school for around 2,000 students from low-income families. Their education and living expenses are paid for by the Hershey Trust, which is funded by the Trust's stake in the chocolate maker. "Everyone who worked for Mr Hershey always had a job," said Ernie, a 69-year-old Hershey worker who declined to give his last name. "It's always been Hershey," he affirmed. Asked about the town's role in the company, Hershey Co. said: "We are proud of the company's rich heritage and the Hershey community." Spokespeople at Mondelez were not immediately available for a comment. The town's devotion to its roots has led to confrontations in the past. Back in 2002 when Wm. Wrigley Jr., renowned for its chewing gum, attempted to buy Hershey for $12.5 billion, irate local residents signed petitions and staged rallies to stop plans to sell the company. The then attorney general sought to block the deal, prompting the Trust to call off the sale at the last minute. When some residents complained about the planned demolition of parts of an old Hershey factory in 2012, the company went ahead anyway. "People like things to stay the way they are," said a 63-year-old resident who has lived in Hershey since 1978. To be sure, not all Hershey residents are attached to the status quo. Some younger residents voiced indifference to the future of the candy maker, saying practical business considerations should take precedence. On paper, a sale to Mondelez could benefit Hershey. Hershey has a strong US presence while Mondelez has a global network. A marriage of the two would create the world's largest confectionary company with an estimated 18 per cent of the market share, said market research firm Euromonitor International Ltd. While Mondelez has vowed to keep Hershey's name and preserve jobs, some said such promises would ring empty with loyal "Hershey-ites." US food giant Kraft, now known as Kraft Heinz Co, drew controversy in 2010 after it shut a factory in southwest England following its takeover of Cadbury, now owned by Mondelez, reneging on an earlier promise to keep the factory open. "Would I like it to be sold? No," said the 63-year-old resident. "There is the legacy and the history of Mr Hershey, and what becomes of the Trust? I don't know what will become of the school and the Trust." (Reuters)

Chocolate giant Hershey may face bitter opposition in namesake town

Gold gave up most of its gains on Tuesday after soaring to a near two-year peak in the previous session, as the market pulled back with the yellow metal failing to break a key resistance level. 
 
Spot gold was down 0.6 per cent at $1,346.60 an ounce as of 0430 GMT. Bullion touched a peak of $1,357.60 an ounce on Monday, less than $1 below a two-year high hit on June 24. 
 
Further, US gold was up 0.6 per cent at $1,346.40. 
 
Technical charts show spot gold may retrace towards a support at $1,323 per ounce, as it failed to break a resistance at $1,351, said Wang Tao, a Reuters market analyst for commodities and energy technicals. 
 
Silver fell more than 3 per cent at one point to $19.548, before paring losses to trade 1.6 per cent lower at $19.98 an ounce. It had jumped as much as 7 per cent, breaking above $21 an ounce for the first time in two years, in the previous session. 
 
&quot;The precious metals had a very strong upside momentum in the past few sessions after the Brexit referendum. Some kind of pullback in the current market conditions seems justified,&quot; said Mark To, head of research at Hong Kong&#39;s Wing Fung Financial Group. 
 
&quot;It could be a very short-term correction,&quot; he said.&nbsp; 
 
Gold, which has risen about 27 per cent so far this year, has gained 8 per cent since the Brexit vote as global stock markets plunged on economical and political uncertainties. 
 
Analysts said central bank decisions, especially those of the US Federal Reserve, will be a major determinant for gold, which is often perceived as a hedge against economic and financial risk. 
 
Britain&#39;s vote to leave the European Union (EU) has ramped up the urgency for some Asian central banks to ease monetary policy, as a prolonged period of uncertainty threatens a wider downshift in trade and investment. 
 
&quot;The collective bias towards renewed easing is going to be supportive for the precious group, going into July, particularly for gold and silver, while platinum and palladium will also be pulled higher,&quot; INTL FCStone analyst Edward Meir said in a note. 
 
Asian shares snapped a five-session winning streak on Tuesday as investors took stock of a rally driven by hopes that central banks will provide more stimulus to offset a likely downturn triggered by Brexit. 
 
The US dollar index, which tracks the greenback against a basket of six rival currencies, remained steady at 95.61. 
 
Among other precious metals, platinum fell 1.2 per cent to $1,052.25 an ounce. 
 
Palladium, which fell over 4 per cent earlier in the session, was on track to register its biggest single-day loss since May 9. It was last down 3.3 per cent to $593.60. 
 
(Reuters)

Gold, which has risen about 27 per cent so far this year, has gained 8 per cent since the Brexit vote

Gold gave up most of its gains on Tuesday after soaring to a near two-year peak in the previous session, as the market pulled back with the yellow metal failing to break a key resistance level. Spot gold was down 0.6 per cent at $1,346.60 an ounce as of 0430 GMT. Bullion touched a peak of $1,357.60 an ounce on Monday, less than $1 below a two-year high hit on June 24. Further, US gold was up 0.6 per cent at $1,346.40. Technical charts show spot gold may retrace towards a support at $1,323 per ounce, as it failed to break a resistance at $1,351, said Wang Tao, a Reuters market analyst for commodities and energy technicals. Silver fell more than 3 per cent at one point to $19.548, before paring losses to trade 1.6 per cent lower at $19.98 an ounce. It had jumped as much as 7 per cent, breaking above $21 an ounce for the first time in two years, in the previous session. "The precious metals had a very strong upside momentum in the past few sessions after the Brexit referendum. Some kind of pullback in the current market conditions seems justified," said Mark To, head of research at Hong Kong's Wing Fung Financial Group. "It could be a very short-term correction," he said. Gold, which has risen about 27 per cent so far this year, has gained 8 per cent since the Brexit vote as global stock markets plunged on economical and political uncertainties. Analysts said central bank decisions, especially those of the US Federal Reserve, will be a major determinant for gold, which is often perceived as a hedge against economic and financial risk. Britain's vote to leave the European Union (EU) has ramped up the urgency for some Asian central banks to ease monetary policy, as a prolonged period of uncertainty threatens a wider downshift in trade and investment. "The collective bias towards renewed easing is going to be supportive for the precious group, going into July, particularly for gold and silver, while platinum and palladium will also be pulled higher," INTL FCStone analyst Edward Meir said in a note. Asian shares snapped a five-session winning streak on Tuesday as investors took stock of a rally driven by hopes that central banks will provide more stimulus to offset a likely downturn triggered by Brexit. The US dollar index, which tracks the greenback against a basket of six rival currencies, remained steady at 95.61. Among other precious metals, platinum fell 1.2 per cent to $1,052.25 an ounce. Palladium, which fell over 4 per cent earlier in the session, was on track to register its biggest single-day loss since May 9. It was last down 3.3 per cent to $593.60. (Reuters)

Gold retreats from near two-year high, correction seen short-term

Asian shares snapped a five-day winning streak on Tuesday as investors took stock of a rally driven by hopes that central banks will provide more stimulus to offset a likely downturn triggered by Brexit. 
 
MSCI&#39;s broadest index of Asia-Pacific shares outside Japan fell 0.7 per cent, but was still within reach of its June 9 peak, having risen 5.6 per cent from its low after the Brexit vote on June 23. 
 
Japan&#39;s Nikkei dropped 0.9 per cent. 
 
Chinese shares rose, with the CSI 300 up 0.3 per cent, while the Shanghai Composite added 0.6 per cent, buoyed in part by a private business survey which showed growth in the services sector jumped to an 11-month high. But Hong Kong&#39;s Hang Seng retreated 0.8 percent. 
 
But trade was thin, with financial and commodities markets in the United States closed on Monday for Independence Day. 
 
In Europe, the FTSEurofirst 300 index fell 0.6 per cent, snapping its four-day winning streak, led by a 1.6 per cent decline in bank shares. 
 
Shares in Italian banks, saddled with a mountain of bad loans, dropped 3.7 per cent after Italian Prime Minister Matteo Renzi&#39;s spokesman said the country had no plans to pump public money into its banks, a move that could be seen as defying EU rules. 
 
Oil prices retreated as analysts predicted demand will weaken amid concerns about the global economic outlook. 
 
Brent crude slipped 0.7 per cent to $49.74 a barrel, after gaining 6.2 per cent over the week through Monday. 
 
US crude slipped 1.2 per cent to $48.41, eating into the 5.7 per cent advance made over the prior week. 
 
Overnight the price of precious and base metals hit multi-month highs before giving up gains as traders bet on more stimulus. 
 
Silver relinquished some of its gains from the past few sessions that had sent it to a two-year high of $21.107 an ounce on Monday. The metal, which rose 14.6 per cent over the week ended Monday, fell 1.8 per cent to $19.93. 
 
Gold also closed at a two-year high of $1,357.40 per ounce on Monday and last stood at $1,344.56. 
 
The price of copper and aluminium hit two-month highs on Monday while lead hit a four-month peak. 
 
&quot;Various commodities are rising even though there is no clear sign of sudden improvement in demand in each market,&quot; said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management. 
 
&quot;Their rally seems to be driven by hopes of stimulus.&quot; 
 
Britain&#39;s vote to leave the European Union has ramped up the urgency for some Asian central banks to ease monetary policy, as a prolonged period of uncertainty threatens a wider downshift in trade and investment. 
 
Many investors expect the European Central Bank and the Bank of Japan to expand their monetary easing. Base metal prices were also bolstered by talk of stimulus in China. 
 
The euro slid 0.2 per cent to $1.11305, but retained most of the gains made since its 3 1/2-month low of $1.0912 hit in the wake of the UK referendum. 
 
The Bank of England has indicated it could provide stimulus measures to support the economy in coming months. 
 
That kept the pound close to its 31-year trough hit in the wake of the Brexit decision. 
 
Sterling dropped 0.3 per cent to $1.3253, just one per cent above its June 27 low of $1.3122. 
 
The yen strengthened 0.4 per cent to 102.16 to the dollar. 
 
The Australian dollar pulled back 0.3 per cent to $0.7515. On Monday, it shrugged off political uncertainty caused by Australia&#39;s undecided general election to rise to $0.7545, its highest level since June 24, helped by the advance in commodities. 
 
The Australian central bank is widely expected to keep interest rates unchanged at its policy announcement at 0430 GMT. 
 
(Reuters)

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7 per cent, but was still within reach of its June 9 peak

Asian shares snapped a five-day winning streak on Tuesday as investors took stock of a rally driven by hopes that central banks will provide more stimulus to offset a likely downturn triggered by Brexit. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7 per cent, but was still within reach of its June 9 peak, having risen 5.6 per cent from its low after the Brexit vote on June 23. Japan's Nikkei dropped 0.9 per cent. Chinese shares rose, with the CSI 300 up 0.3 per cent, while the Shanghai Composite added 0.6 per cent, buoyed in part by a private business survey which showed growth in the services sector jumped to an 11-month high. But Hong Kong's Hang Seng retreated 0.8 percent. But trade was thin, with financial and commodities markets in the United States closed on Monday for Independence Day. In Europe, the FTSEurofirst 300 index fell 0.6 per cent, snapping its four-day winning streak, led by a 1.6 per cent decline in bank shares. Shares in Italian banks, saddled with a mountain of bad loans, dropped 3.7 per cent after Italian Prime Minister Matteo Renzi's spokesman said the country had no plans to pump public money into its banks, a move that could be seen as defying EU rules. Oil prices retreated as analysts predicted demand will weaken amid concerns about the global economic outlook. Brent crude slipped 0.7 per cent to $49.74 a barrel, after gaining 6.2 per cent over the week through Monday. US crude slipped 1.2 per cent to $48.41, eating into the 5.7 per cent advance made over the prior week. Overnight the price of precious and base metals hit multi-month highs before giving up gains as traders bet on more stimulus. Silver relinquished some of its gains from the past few sessions that had sent it to a two-year high of $21.107 an ounce on Monday. The metal, which rose 14.6 per cent over the week ended Monday, fell 1.8 per cent to $19.93. Gold also closed at a two-year high of $1,357.40 per ounce on Monday and last stood at $1,344.56. The price of copper and aluminium hit two-month highs on Monday while lead hit a four-month peak. "Various commodities are rising even though there is no clear sign of sudden improvement in demand in each market," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management. "Their rally seems to be driven by hopes of stimulus." Britain's vote to leave the European Union has ramped up the urgency for some Asian central banks to ease monetary policy, as a prolonged period of uncertainty threatens a wider downshift in trade and investment. Many investors expect the European Central Bank and the Bank of Japan to expand their monetary easing. Base metal prices were also bolstered by talk of stimulus in China. The euro slid 0.2 per cent to $1.11305, but retained most of the gains made since its 3 1/2-month low of $1.0912 hit in the wake of the UK referendum. The Bank of England has indicated it could provide stimulus measures to support the economy in coming months. That kept the pound close to its 31-year trough hit in the wake of the Brexit decision. Sterling dropped 0.3 per cent to $1.3253, just one per cent above its June 27 low of $1.3122. The yen strengthened 0.4 per cent to 102.16 to the dollar. The Australian dollar pulled back 0.3 per cent to $0.7515. On Monday, it shrugged off political uncertainty caused by Australia's undecided general election to rise to $0.7545, its highest level since June 24, helped by the advance in commodities. The Australian central bank is widely expected to keep interest rates unchanged at its policy announcement at 0430 GMT. (Reuters)

Asian shares slide as investors ponder stimulus outlook

India&#39;s banks will need about $90 billion to meet global Basel III rules which are due to be fully implemented by March 2019, Fitch Ratings said, calling the requirements &quot;onerous&quot; given the lenders&#39; weak asset quality and internal capital generation. 
 
The capital needs of more than two dozen lenders that are majority owned by the state make up about 80 per cent of the system total, the rating agency said in a statement on Tuesday. More than half the capital needs will have to be met via core equity, it added. 
 
&quot;The sharp rise in their non-performing loans (NPLs) and resultant losses have weakened the banks&#39; core capital buffers,&quot; Fitch said of the state-run banks, adding the &quot;viability ratings&quot; of the lenders would be under pressure if capital levels are not addressed either by the government or the market. 
 
With their weak metrics and high bad loans, India&#39;s state-run banks have not been investor favourites, forcing them to depend on the government for capital injection. 
 
The government has plans to inject 450 billion rupees ($6.7 billion) in the banks through March 2019. 
 
Fitch said the government and related entities will likely have to inject more so that the banks continue to lend. 
 
($1 = 67.4700 rupees) 
 
(Reuters)

The capital needs of more than two dozen lenders that are majority owned by the state make up about 80 per cent of the system total

India's banks will need about $90 billion to meet global Basel III rules which are due to be fully implemented by March 2019, Fitch Ratings said, calling the requirements "onerous" given the lenders' weak asset quality and internal capital generation. The capital needs of more than two dozen lenders that are majority owned by the state make up about 80 per cent of the system total, the rating agency said in a statement on Tuesday. More than half the capital needs will have to be met via core equity, it added. "The sharp rise in their non-performing loans (NPLs) and resultant losses have weakened the banks' core capital buffers," Fitch said of the state-run banks, adding the "viability ratings" of the lenders would be under pressure if capital levels are not addressed either by the government or the market. With their weak metrics and high bad loans, India's state-run banks have not been investor favourites, forcing them to depend on the government for capital injection. The government has plans to inject 450 billion rupees ($6.7 billion) in the banks through March 2019. Fitch said the government and related entities will likely have to inject more so that the banks continue to lend. ($1 = 67.4700 rupees) (Reuters)

Indian banks need $90 billion to meet Basel III rules: Fitch

The new head of Sri Lanka&#39;s central bank Indrajit Coomaraswamy pledged on Monday to uphold its credibility after allegations of insider dealing that forced his predecessor to leave. 
 
Sri Lanka&#39;s president bowed to pressure to replace Arjuna Mahendran after he was accused of leaking information to his son-in-law&#39;s firm, which allegedly made millions of dollars in profits from central bank bond auctions. 
 
The scandal came with Sri Lanka&#39;s economy under stress -- last month the country began receiving a $1.5 billion bailout from the International Monetary Fund. 
 
On Monday Coomaraswamy told staff the bank was &quot;one of the great institutions in this country&quot;. 
 
&quot;I am acutely aware that a primary responsibility, arguably the primary responsibility of the governor, is to uphold this reputation and credibility,&quot; said the 66-year-old former director of economic affairs at the Commonwealth Secretariat, an intergovernmental agency of&nbsp;Commonwealth countries in London. 
 
&quot;I can assure you that I will do my utmost to do so at all times.&quot; 
 
Mahendran, a Singaporean national of Sri Lankan origin, has consistently maintained his innocence and had indicated he wanted to stay on after his term expired on June 30. 
 
But a group of Sri Lankan academics and professionals had gone to court to demand action against him and the government decided not to keep him on. 
 
The new bank chief also promised to work independently following allegations that the office of the governor had become politicised in recent years. 
 
&quot;When I met the president he just told me one thing - &#39;Do your work in a straight way and do not fear anybody in discharging your duties&#39;. My intention is to follow his direction,&quot; Coomaraswamy told his staff. 
 
He said he wanted to ensure strong macro economic fundamentals to win the confidence of people both in and outside the country. 
 
(AFP)

'I can assure you that I will do my utmost to do so at all times,' the chief said

The new head of Sri Lanka's central bank Indrajit Coomaraswamy pledged on Monday to uphold its credibility after allegations of insider dealing that forced his predecessor to leave. Sri Lanka's president bowed to pressure to replace Arjuna Mahendran after he was accused of leaking information to his son-in-law's firm, which allegedly made millions of dollars in profits from central bank bond auctions. The scandal came with Sri Lanka's economy under stress -- last month the country began receiving a $1.5 billion bailout from the International Monetary Fund. On Monday Coomaraswamy told staff the bank was "one of the great institutions in this country". "I am acutely aware that a primary responsibility, arguably the primary responsibility of the governor, is to uphold this reputation and credibility," said the 66-year-old former director of economic affairs at the Commonwealth Secretariat, an intergovernmental agency of Commonwealth countries in London. "I can assure you that I will do my utmost to do so at all times." Mahendran, a Singaporean national of Sri Lankan origin, has consistently maintained his innocence and had indicated he wanted to stay on after his term expired on June 30. But a group of Sri Lankan academics and professionals had gone to court to demand action against him and the government decided not to keep him on. The new bank chief also promised to work independently following allegations that the office of the governor had become politicised in recent years. "When I met the president he just told me one thing - 'Do your work in a straight way and do not fear anybody in discharging your duties'. My intention is to follow his direction," Coomaraswamy told his staff. He said he wanted to ensure strong macro economic fundamentals to win the confidence of people both in and outside the country. (AFP)

Sri Lanka's new central bank chief to 'uphold credibility'

Asian stocks pushed higher again on Monday, building on last week&#39;s rally as central banks around the world promised support to financial markets after Britain&#39;s vote to leave the European Union (EU) fuelled fears of another rout. 
 
The optimism that characterised last week continued as investors tracked another surge in New York and Europe, helped by upbeat US and Eurozone data. 
 
However, analysts warned there was still a plenty of headwinds as Britain and EU leaders must agree a breakaway deal, while the global economy remained fragile. 
 
Tokyo rose 0.4 per cent by the break, Hong Kong climbed 1.3 per cent, Shanghai added 0.8 per cent and Seoul 0.3 per cent. 
 
South Korea&#39;s promise of $17 billion in stimulus last week came as dealers speculate that Japan will bolster its own multi-billion-dollar programme, while the chances of the US raising interest rates this year have all but evaporated. 
 
On Thursday, Bank of England boss Mark Carney became the latest to provide assurances, indicating policymakers could embark on fresh monetary easing -- raising the possibility of a cut in rates. 
 
Richard Jerram, chief economist at Bank of Singapore, said, &quot;Overall the impact of Brexit on the global economy seems likely to be limited, with the pain concentrated on the UK and, to a lesser extent, the rest of the EU.&quot; 
 
But Nicholas Teo, a trading strategist at KGI Fraser Securities in Singapore, told Bloomberg News, &quot;While the potential for increased liquidity from central banks has helped calm stock markets, there&rsquo;s still a lot of uncertainty out there. 
 
&quot;The strengthening US dollar isn&rsquo;t good for emerging markets. With China still on a slowdown, US recovery tentative and the messy UK-EU divorce, volatility will remain heightened,&quot; he added.&nbsp; 
 
The Pound edged up against the dollar after taking a hammering from the referendum outcome. In early trade it bought $1.3307 against $1.3267 Friday in New York and is well up from the 31-year low $1.3121 touched at the start of last week. 
 
(AFP)

The optimism that characterised last week continued as investors tracked another surge helped by upbeat US and Eurozone data

Asian stocks pushed higher again on Monday, building on last week's rally as central banks around the world promised support to financial markets after Britain's vote to leave the European Union (EU) fuelled fears of another rout. The optimism that characterised last week continued as investors tracked another surge in New York and Europe, helped by upbeat US and Eurozone data. However, analysts warned there was still a plenty of headwinds as Britain and EU leaders must agree a breakaway deal, while the global economy remained fragile. Tokyo rose 0.4 per cent by the break, Hong Kong climbed 1.3 per cent, Shanghai added 0.8 per cent and Seoul 0.3 per cent. South Korea's promise of $17 billion in stimulus last week came as dealers speculate that Japan will bolster its own multi-billion-dollar programme, while the chances of the US raising interest rates this year have all but evaporated. On Thursday, Bank of England boss Mark Carney became the latest to provide assurances, indicating policymakers could embark on fresh monetary easing -- raising the possibility of a cut in rates. Richard Jerram, chief economist at Bank of Singapore, said, "Overall the impact of Brexit on the global economy seems likely to be limited, with the pain concentrated on the UK and, to a lesser extent, the rest of the EU." But Nicholas Teo, a trading strategist at KGI Fraser Securities in Singapore, told Bloomberg News, "While the potential for increased liquidity from central banks has helped calm stock markets, there’s still a lot of uncertainty out there. "The strengthening US dollar isn’t good for emerging markets. With China still on a slowdown, US recovery tentative and the messy UK-EU divorce, volatility will remain heightened," he added. The Pound edged up against the dollar after taking a hammering from the referendum outcome. In early trade it bought $1.3307 against $1.3267 Friday in New York and is well up from the 31-year low $1.3121 touched at the start of last week. (AFP)

Asian markets extend rally on central bank hopes

The aftershocks of Britain&#39;s decision to leave the European Union (EU) have hit the property sector over the past week, with a foreign bank freezing loans for buyers and some investors pulling out of commercial deals. 
 
Some foreigners, however, are already making the most of the drop in the Pound post-Brexit to snap up what they see as residential bargains. 
 
London property has long been a magnet for foreign investors, be it extravagant homes or iconic commercial real estate, and prices in the capital have sky-rocketed. 
 
Key to overseas investors will be whether the fall in the value of Sterling is attractive enough to offset the political vacuum, expected economic slowdown and questions over market access that have resulted from Britain&#39;s vote to leave the EU. 
 
Singapore&#39;s United Overseas Bank temporarily halted mortgage loans for London properties. Other Asian banks also flagged potential investment risks. 
 
For British investors, the uncertainty may be prohibitive, even though property is widely considered more profitable than other safe assets, given supply shortages. 
 
&quot;A number of deals I know have gone down or certainly been delayed,&quot; Paul Firth, head of real estate at law firm Irwin Mitchell LLP said. &quot;Everyone is taking a pause at the moment just to wait until a new normal is established.&quot; 
 
In one case, the purchase of a regional shopping centre by a US&nbsp;private equity fund worth more than 30 million Pounds ($40 million) was delayed after Brexit for at least a couple of months pending the market settling down. 
 
Another deal his firm was working on involved a French vendor of high-end luxury goods who put on hold its new flagship London store after Britain&#39;s decision to leave the EU, he said. 
 
He said a number of their &quot;significant investment deals&quot;, worth above 30 million Pounds each, had stalled. The deals involved mainly UK investors but also some foreigners. One deal the firm was working on worth more than 40 million Pounds had gone through since Brexit. 
 
Britain&#39;s June 23 vote to leave the EU has already caused the government to collapse and deeply divided the country. 
 
Bank of England Governor Mark Carney said on Thursday the economy would probably need more stimulus over the summer given that the outlook had deteriorated. He also said commercial real estate transactions had halved since last year&#39;s peak and that activity in residential real estate had slowed sharply. 
 
British commercial real estate investment volumes reached 10.7 billion Pounds in the first three months of 2016, a 28 per cent fall versus the same period a year ago and its lowest quarter since the second quarter of 2013, according to June research from real estate services firm Cushman &amp; Wakefield. 
 
Investors&#39;&nbsp;gain, home-buyers&#39; pain 
 
There were also signs that the fallout from Brexit was benefiting professional investors such as private funds at the expense of homebuyers, who may struggle along with the economy. 
 
Before the referendum, officials said the economy could tip into recession and house prices could fall 10 to 18 per cent if Britain voted to leave the EU. Economists polled by Reuters before the vote said they expected house prices to be flat next year and then pick up again if Britain chose to leave. 
 
David Galman, sales director at Galliard Homes, said professional investors had already contacted him offering to buy any units end-users may seek to sell in the Skyline residential development it launched in June just outside London. 
 
Galliard Homes, London&#39;s second largest house-builder, had offered buyers get out clauses for the 89 off-plan units ranging from 200,000 to 250,000 Pounds in their development in Slough, west of London. The buyers had the option to withdraw their offers if they were unhappy with the outcome of the EU vote. 
 
Galman said just one client, &quot;an owner occupier&quot; had thus far invoked a Brexit clause but that flat had already been sold at the same price to a professional investor. 
 
&quot;I anticipate that we may get a small number of deals at Slough falling out of bed due to Brexit &ndash; all domestic end-users spooked by the Brexit drama,&quot; he said. 
 
Another development that offered Brexit opt out options was Two Fifty One, a 41-storey luxury apartment tower going up in south London&#39;s gentrifying Elephant and Castle district. 
 
At a May launch of some floors in the development, buyers were offered a &quot;money back Brexit guarantee pledge&quot;. 
 
&quot;A few purchasers have decided not to proceed given the uncertainty of the market,&quot; David Humbles, managing director of Oakmayne, the developer who runs the project said. &quot;However, the majority are continuing with their purchase.&quot; 
 
Tim Wright, director of residential development, at global commercial real estate firm JLL said including the Two Fifty One development, 2 out of around 20 developments in the portfolio that he runs in London had offered opt-out options for buyers on a limited number of units. 
 
&quot;We&#39;ve lost about 25 per cent of those types of deals,&quot; Wright said. &quot;But there are still a lot of people who bought on those terms who are continuing to purchase.&quot; 
 
London appeal 
 
Sterling&#39;s steep fall post-Brexit could offset some of the effects from tax increases introduced in April, which made buying properties especially in central London, an area favoured by foreign buyers, more expensive. There were signs that this was already happening in the top-end of the residential market. 
 
&quot;We have made a number of sales,&quot; David Adams, a managing director at luxury real estate agent John Taylor said, anticipating more Middle Eastern interest at the end of Ramadan in properties worth between 2 and 6 million Pounds. 
 
He said they had also had some interest and an offer on apartment blocks from 23 million to 45 million Pounds. 
 
&quot;We have an immediate uplift (in sales to the) Middle East, United States and Asia, but we have a decrease in English domestic buyers, because of political instability.&quot; 
 
Ed Mead, executive director at estate agent Douglas and Gordon had also seen an increase in foreign interest, but said the broader prime central London market would continue to struggle with the kind of uncertainty seen before the vote. 
 
&quot;We had four separate buyers who put in offers (the day after the vote), which were quite cheeky but clearly based on the fact they were getting an extraordinarily abnormal deal,&quot; he said. 
 
The offers, which were in the over one million pound range and came from US&nbsp;and European investors, had &quot;clearly been brought about because of the fall in sterling&quot;. 
 
&quot;The potential fallout from getting it wrong politically is strong and people simply want ongoing stability, both political and (in the) currency.&quot; 
 
($1 = 0.7533 pounds) 
 
(Reuters)

Singapore's UOB temporarily halted mortgage loans for London properties and other Asian banks also flagged potential investment risks

The aftershocks of Britain's decision to leave the European Union (EU) have hit the property sector over the past week, with a foreign bank freezing loans for buyers and some investors pulling out of commercial deals. Some foreigners, however, are already making the most of the drop in the Pound post-Brexit to snap up what they see as residential bargains. London property has long been a magnet for foreign investors, be it extravagant homes or iconic commercial real estate, and prices in the capital have sky-rocketed. Key to overseas investors will be whether the fall in the value of Sterling is attractive enough to offset the political vacuum, expected economic slowdown and questions over market access that have resulted from Britain's vote to leave the EU. Singapore's United Overseas Bank temporarily halted mortgage loans for London properties. Other Asian banks also flagged potential investment risks. For British investors, the uncertainty may be prohibitive, even though property is widely considered more profitable than other safe assets, given supply shortages. "A number of deals I know have gone down or certainly been delayed," Paul Firth, head of real estate at law firm Irwin Mitchell LLP said. "Everyone is taking a pause at the moment just to wait until a new normal is established." In one case, the purchase of a regional shopping centre by a US private equity fund worth more than 30 million Pounds ($40 million) was delayed after Brexit for at least a couple of months pending the market settling down. Another deal his firm was working on involved a French vendor of high-end luxury goods who put on hold its new flagship London store after Britain's decision to leave the EU, he said. He said a number of their "significant investment deals", worth above 30 million Pounds each, had stalled. The deals involved mainly UK investors but also some foreigners. One deal the firm was working on worth more than 40 million Pounds had gone through since Brexit. Britain's June 23 vote to leave the EU has already caused the government to collapse and deeply divided the country. Bank of England Governor Mark Carney said on Thursday the economy would probably need more stimulus over the summer given that the outlook had deteriorated. He also said commercial real estate transactions had halved since last year's peak and that activity in residential real estate had slowed sharply. British commercial real estate investment volumes reached 10.7 billion Pounds in the first three months of 2016, a 28 per cent fall versus the same period a year ago and its lowest quarter since the second quarter of 2013, according to June research from real estate services firm Cushman & Wakefield. Investors' gain, home-buyers' pain There were also signs that the fallout from Brexit was benefiting professional investors such as private funds at the expense of homebuyers, who may struggle along with the economy. Before the referendum, officials said the economy could tip into recession and house prices could fall 10 to 18 per cent if Britain voted to leave the EU. Economists polled by Reuters before the vote said they expected house prices to be flat next year and then pick up again if Britain chose to leave. David Galman, sales director at Galliard Homes, said professional investors had already contacted him offering to buy any units end-users may seek to sell in the Skyline residential development it launched in June just outside London. Galliard Homes, London's second largest house-builder, had offered buyers get out clauses for the 89 off-plan units ranging from 200,000 to 250,000 Pounds in their development in Slough, west of London. The buyers had the option to withdraw their offers if they were unhappy with the outcome of the EU vote. Galman said just one client, "an owner occupier" had thus far invoked a Brexit clause but that flat had already been sold at the same price to a professional investor. "I anticipate that we may get a small number of deals at Slough falling out of bed due to Brexit – all domestic end-users spooked by the Brexit drama," he said. Another development that offered Brexit opt out options was Two Fifty One, a 41-storey luxury apartment tower going up in south London's gentrifying Elephant and Castle district. At a May launch of some floors in the development, buyers were offered a "money back Brexit guarantee pledge". "A few purchasers have decided not to proceed given the uncertainty of the market," David Humbles, managing director of Oakmayne, the developer who runs the project said. "However, the majority are continuing with their purchase." Tim Wright, director of residential development, at global commercial real estate firm JLL said including the Two Fifty One development, 2 out of around 20 developments in the portfolio that he runs in London had offered opt-out options for buyers on a limited number of units. "We've lost about 25 per cent of those types of deals," Wright said. "But there are still a lot of people who bought on those terms who are continuing to purchase." London appeal Sterling's steep fall post-Brexit could offset some of the effects from tax increases introduced in April, which made buying properties especially in central London, an area favoured by foreign buyers, more expensive. There were signs that this was already happening in the top-end of the residential market. "We have made a number of sales," David Adams, a managing director at luxury real estate agent John Taylor said, anticipating more Middle Eastern interest at the end of Ramadan in properties worth between 2 and 6 million Pounds. He said they had also had some interest and an offer on apartment blocks from 23 million to 45 million Pounds. "We have an immediate uplift (in sales to the) Middle East, United States and Asia, but we have a decrease in English domestic buyers, because of political instability." Ed Mead, executive director at estate agent Douglas and Gordon had also seen an increase in foreign interest, but said the broader prime central London market would continue to struggle with the kind of uncertainty seen before the vote. "We had four separate buyers who put in offers (the day after the vote), which were quite cheeky but clearly based on the fact they were getting an extraordinarily abnormal deal," he said. The offers, which were in the over one million pound range and came from US and European investors, had "clearly been brought about because of the fall in sterling". "The potential fallout from getting it wrong politically is strong and people simply want ongoing stability, both political and (in the) currency." ($1 = 0.7533 pounds) (Reuters)

Brexit hits London property market

Venezuela&#39;s oil revenues plummeted 40.7 per cent in 2015 due to sinking global oil prices, the country&#39;s state-owned oil and natural gas company,&nbsp;Petr?leos de Venezuela, S.A. (PDVSA)&nbsp;said in its annual report released Sunday.

PDVSA -- the world&#39;s fifth-largest oil company -- earned $72.2 billion in revenues last year, a sharp drop from 2014&#39;s $121.9 billion.

Meanwhile, its net profit fell 19 per cent to $7.3 billion.

The South American OPEC country relies heavily on its oil and gas reserves -- which account for 96 per cent of the country&#39;s exports and are the largest worldwide at more than 300 billion barrels.

The first half of 2016 saw the value of Venezuela&#39;s crude oil tumble to an average $31.15 per barrel, said the country&#39;s Ministry of Petroleum and Mining last Friday.

&quot;In 2014 the average price was $88. It is obvious that our earnings have dropped,&quot; said PDVSA president and Venezuela&#39;s Oil Minister Eulogio del Pino, in a Sunday interview broadcast by the private station Televen.

The sector&#39;s nose-dive has exacerbated the country&#39;s already dire economic situation in which 80 per cent of basic consumer products, including food and medicine, are in short supply.

Soaring prices and shortages have in turn led to riots, looting and vigilante justice.

President Nicolas Maduro blames the country&#39;s economic woes on a right-wing conspiracy, while the opposition is demanding a referendum to oust the leader. 
 
(AFP)

PDVSA - the world's fifth-largest oil company - earned $72.2 billion in revenues last year, a sharp drop from 2014's $121.9 billion

Venezuela's oil revenues plummeted 40.7 per cent in 2015 due to sinking global oil prices, the country's state-owned oil and natural gas company, Petr?leos de Venezuela, S.A. (PDVSA) said in its annual report released Sunday. PDVSA -- the world's fifth-largest oil company -- earned $72.2 billion in revenues last year, a sharp drop from 2014's $121.9 billion. Meanwhile, its net profit fell 19 per cent to $7.3 billion. The South American OPEC country relies heavily on its oil and gas reserves -- which account for 96 per cent of the country's exports and are the largest worldwide at more than 300 billion barrels. The first half of 2016 saw the value of Venezuela's crude oil tumble to an average $31.15 per barrel, said the country's Ministry of Petroleum and Mining last Friday. "In 2014 the average price was $88. It is obvious that our earnings have dropped," said PDVSA president and Venezuela's Oil Minister Eulogio del Pino, in a Sunday interview broadcast by the private station Televen. The sector's nose-dive has exacerbated the country's already dire economic situation in which 80 per cent of basic consumer products, including food and medicine, are in short supply. Soaring prices and shortages have in turn led to riots, looting and vigilante justice. President Nicolas Maduro blames the country's economic woes on a right-wing conspiracy, while the opposition is demanding a referendum to oust the leader. (AFP)

Venezuelan oil plummets in 2015, says PDVSA annual report

Oil futures were steady on Monday following comments from the Saudi energy minister that the market was heading towards balance, even if signs of slowing demand in Asia weighed. 
 
Brent crude futures were trading at $50.31 per barrel at 0441 GMT, almost unchanged from their last settlement. US crude oil were down 5 cents at $48.94. 
 
There will be no West Texas Intermediate crude settlement on Monday as US financial and commodity markets are closed for the US Independence Day holiday. 
 
&quot;Fundamentals offer limited scope for further price gains and we expect Brent to trade broadly sideways over the coming months,&quot; said analysts at BMI Research. 
 
The energy minister of Saudi Arabia, the world&#39;s top crude exporter, and the secretary general of producer club OPEC agreed that global oil markets were heading towards balance and that prices reflect this. 
 
Crude futures are drawing some support from concerns over output in Nigeria, where a militant group has been carrying out attacks on oil facilities over the past months. 
 
Attacks in the Niger Delta have pushed Nigerian crude production to 30-year lows, although the Nigerian National Petroleum Corporation said last week that output was rising following repairs. 
 
&quot;After another counter-seasonal summer build, gasoline cracks now trade below diesel, which should force refiners to act. The end result is likely to be run cuts, with some signs already emerging for 3Q,&quot; Morgan Stanley said on Monday. 
 
&quot;Asia refiners have already started to pull back ... and there are reports of cargoes struggling to sell,&quot; it added. 
 
Higher oil output is another factor that could cap prices. 
 
In the United States, drillers last week added oil rigs for a fourth week in five, in the best month of producers returning to the&nbsp;well pad since August 2016. 
 
Also, Russian oil output stood at 10.84 million barrels per day (bpd) in June, up from 10.83 bpd in May. 
 
In Norway, oil workers signed a deal on Saturday, avoiding a strike that would have cut output from western Europe&#39;s top oil producer by about 6 per cent. 
 
Money managers cut their net long US crude futures and options positions in the week to June 28, the US Commodity Futures Trading Commission said on Friday. 
 
(Reuters)

Fundamentals offer limited scope for further price gains and Brent is expected to trade broadly sideways over the coming months

Oil futures were steady on Monday following comments from the Saudi energy minister that the market was heading towards balance, even if signs of slowing demand in Asia weighed. Brent crude futures were trading at $50.31 per barrel at 0441 GMT, almost unchanged from their last settlement. US crude oil were down 5 cents at $48.94. There will be no West Texas Intermediate crude settlement on Monday as US financial and commodity markets are closed for the US Independence Day holiday. "Fundamentals offer limited scope for further price gains and we expect Brent to trade broadly sideways over the coming months," said analysts at BMI Research. The energy minister of Saudi Arabia, the world's top crude exporter, and the secretary general of producer club OPEC agreed that global oil markets were heading towards balance and that prices reflect this. Crude futures are drawing some support from concerns over output in Nigeria, where a militant group has been carrying out attacks on oil facilities over the past months. Attacks in the Niger Delta have pushed Nigerian crude production to 30-year lows, although the Nigerian National Petroleum Corporation said last week that output was rising following repairs. "After another counter-seasonal summer build, gasoline cracks now trade below diesel, which should force refiners to act. The end result is likely to be run cuts, with some signs already emerging for 3Q," Morgan Stanley said on Monday. "Asia refiners have already started to pull back ... and there are reports of cargoes struggling to sell," it added. Higher oil output is another factor that could cap prices. In the United States, drillers last week added oil rigs for a fourth week in five, in the best month of producers returning to the well pad since August 2016. Also, Russian oil output stood at 10.84 million barrels per day (bpd) in June, up from 10.83 bpd in May. In Norway, oil workers signed a deal on Saturday, avoiding a strike that would have cut output from western Europe's top oil producer by about 6 per cent. Money managers cut their net long US crude futures and options positions in the week to June 28, the US Commodity Futures Trading Commission said on Friday. (Reuters)

Oil steady as market moves towards balance, but slow Asian demand hurts