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Local council elections' results reactions continue
source: www.maltamedia.com
The day after the local council elections’ results were finalised is being characterized by reactions to Saturday’s polls, with The Times’ editorial on Monday stating the interpretations that will be given to the election will be as various as the political parties. The Times’ editorial said there is no solid justification for the MLP’s claim that the swing towards it is a consequence, in part, of Nationalist Party (PN) supporters casting their vote in its favour.
The editorial pointed out that it may be more correct to say that MLP’s aggressive campaign made certain that its core vote behaved like one. The assumption that supporters of the PN stayed away merely because they were lackadaisical was also dismissed. While pointing out that perhaps this might have been the case for some voters, the editorial noted that it is hard to generalise because an accurate profile as to the political loyalties of abstainers is not available. The editorial concluded by pointing out that last Saturday's result cannot be extrapolated to the national level; nor can it be totally divorced from it providing food for thought for all three parties.
On the other hand, The Malta Independent’s editorial stated that the Malta Labour Party’s (MLP) win with 53.2% of votes was “predictable”. The editorial stated that this last round of elections confirmed the trend that has taken over the country ever since Malta voted in favour of European Union (EU) membership, with MLP victories all along. Although it noted that the MLP victories mean much less than a national election, the editorial said that their quick succession should give Labour more confidence “for what should be the most important task – the national election.”
Speaking of the PN, the Malta Independent opined that PN would be wrong to assume that Saturday’s defeat was only a result of its supporters’ indifference, adding that there other signs that the party has to look at in its bid to win the national election for the third time running.
L-Oriżżont’s editorial read that Saturday’s electoral result “screams for the need of an urgent change” with regards to how politics works on both a national and local level. The editorial further explained that the excuses and justifications set forward by the PN after Saturday’s defeat “no not honour the PN party and its partisans.” L-Oriżżont’s editorial concluded by saying that this last round of elections confirmed the strength of goodness.
In turn, In-Nazzjon’s editorial, noted that the results provide “nothing different from what we have experienced in the past years”. The editorial read that since a lesser number of PN supporters went out to vote in Saturday’s elections, MLP were at an advantage. It further added that MLP’s “strong and aggressive campaign”, especially through party leader Dr. Alfred Sant and through the media, targeting the localities of Gżira and Mosta, effected the final result.
Oil prices slip below $59 a barrel
source: BusinessWeek
Oil prices dropped below $59 a barrel Monday on forecasts of warmer weather in the United States and the belief that OPEC will keep production quotas stable at its meeting later this week.
The prospect of steady oil output and low heating fuel demand led traders to sell for the third straight session on the New York Mercantile Exchange; however, with U.S. gasoline inventories on the decline and the summer driving season just a few months away, market watchers are saying the downtrend could be short-lived.
Light, sweet crude for April delivery dropped $1.14 to settle at $58.91 a barrel on the Nymex, after falling as low as $58.60 in earlier trading and tumbling 2 percent on Friday.
The National Weather Service is predicting above-normal temperatures in most parts of the Northeast and Midwest for the next two weeks, leading traders to bet that the heating oil season is drawing to a close. On Monday, temperatures hit about 60 degrees in New York, Chicago, and Washington, according to AccuWeather.com.
"It is warmer out, and so we do have a drop in heating demand to price in. We also have some follow-through selling from Friday's relatively weak performance. And the third factor is, our expectation will be that OPEC will not cut production when they meet on Thursday," said Tim Evans, energy analyst at Citigroup Global Markets.
The Organization of Petroleum Exporting Countries, which reduced oil ouput late last year and again in February, meets Thursday in Vienna, Austria. In Dubai, OPEC President Mohammed al-Hamli said global oil demand this year appears robust and expressed satisfaction with member compliance to previously decided production cuts -- although he said the organization was closely watching inventories that remained higher than average.
Also, Qatar's Oil Minister Abdullah bin Hamad al-Attiyah said world oil stockpiles were being drawn down and current crude prices indicated there was no need for OPEC to cut production further this week.
Though crude futures have been sticking to a fairly narrow range over the past few months, persistently strong demand in major economies like the United States and China and the upcoming summer driving season, which boosts gasoline consumption, could buoy oil prices going forward.
"There is potential for this market to trade to $70 a barrel," Evans said. "The recent weakness I would classify as a correction in a larger push to the upside."
Heating oil futures lost 2.99 cents to settle at $1.6823 a gallon on Nymex, and natural gas prices declined 17.1 cents to settle at $6.912 per 1,000 cubic feet.
But gasoline futures eked out a rise, climbing 0.84 cent to settle at $1.9105 a gallon; they are up more than 20 percent since their first trading day in 2007, compared to crude futures, which are little changed on the year. The surge in gasoline futures has trickled down to pump prices; the average U.S. retail price of a gallon of regular gasoline was $2.540 on Monday, 15 percent higher than $2.212 a month ago.
Ongoing uncertainty about Iran's failure to comply with demands to halt its uranium enrichment program has been keeping crude prices from falling very far. Washington is pushing for tougher U.N. sanctions on Tehran and introducing legislation to punish foreign oil companies that invest in Iran's energy industry.
Data that could move the energy markets this week are the International Energy Agency's monthly report on Tuesday; the U.S. Energy Information Administration's weekly petroleum inventories report; and the National Weather Service's long-range forecast update on Thursday.
On London's ICE futures exchange Monday, Brent crude fell 51 cents to $61.10 a barrel.
China vows action on trade gap
source: BusinessWeek
China's government said Monday it is trying to shrink its swollen trade surplus but reported that its monthly gap soared to the second-highest level on record in February amid threats of possible U.S. sanctions.
Commerce Minister Bo Xilai criticized proposed U.S. punitive tariffs as a violation of free trade and said they would hurt American companies.
"The Chinese government never intends to pursue a large-scale trade surplus with others," Bo said at a news conference. He said his ministry was "assigned to cut our trade surplus" but he gave no details and announced no new initiatives.
U.S. lawmakers who blame low-priced Chinese imports for the loss of American manufacturing jobs are pushing for a 27.5 percent increase in tariffs on Chinese goods unless Beijing eases currency controls that they say give its exporters an unfair advantage.
"That would be disastrous for companies from both sides, including the United States, who have benefited from our trading relations," the commerce minister said. "If it were imposed, that would be not only trade protectionism but also trade hegemony."
China's customs agency reported Monday that the monthly trade gap in February rose to $23.7 billion, up 32.9 percent from the same month last year, according to its Web site. That was just below the all-time monthly record of $23.8 billion in October.
The figures were released after Bo's news conference and he did not comment on them.
Last year, the United States reported a record $232.5 billion trade deficit with China.
The White House has filed a World Trade Organization complaint accusing Beijing of violating commitments to the WTO by providing unfair subsidies to Chinese companies.
The communist government has said repeatedly that it is trying to close its trade gap. It has cut export tax rebates for steel and other products and is trying to encourage its consumers to spend more, which would boost imports.
Critics in the United States and elsewhere are pressing for Beijing to ease controls on its currency, the yuan, which they say is intentionally kept undervalued, making China's exports unfairly inexpensive and adding to its surpluses.
Bo, the commerce minister, argued that a large share of the trade gap with the United States consists of goods made in China by American companies and exported to the U.S. market.
The minister appealed for patience to let Chinese measures work.
"It is not wise for us to expect to see very tangible effects within a short time period simply due to the exercise of some trade measures," he said.
Beijing raised the yuan's value by about 2.1 percent against the dollar in July 2005 and has allowed the currency to rise by about 5.3 percent since then in tightly controlled daily trade.
That should help close the gap by making Chinese exports cost more, while imports are more attractive to Chinese consumers.
U.S. officials say Beijing is moving too slowly, but Chinese leaders have rejected pressure for a quicker appreciation.
China's flood of export revenues is forcing the central bank to drain billions of dollars from the economy every month by selling bonds to reduce pressure for prices to rise.
U.S. Treasury Secretary Henry Paulson, Washington's top official on trade with China, said in January that he would make action on currency the benchmark to judge Beijing's responsiveness.
Paulson visited Beijing last week and met with Vice Premier Wu Yi, his counterpart in a long-range "strategic economic dialogue." Paulson was expected to press for currency action, but no details of the talks were released.
Brits Relcaim Aston Martin
source: Forbes
The Brits may feel they have rightfully got their hands back on Aston Martin, the luxury car firm founded in the U.K., made in the U.K. and driven by James Bond, the archetyal if fictional suave Englishman.
Ford Motor (nyse: F - news - people ) is selling control the marque to a U.K.-led consortium headed by Dave Richards of motorsport and automotive engineering company Prodrive and backed by Kuwaiti investors for £479 million ($924 million). Racing tycoon Richards is the former team principal of the BAR and Benetton Formula One teams.
Ford is retaining a £40 million ($77 million) stake in Aston Martin, roughly 13% of its value.
Last week's media reports suggesting private equity company Doughty Hanson would emerge with a rival bid for Aston Martin appear to be unfounded. A U.K. newspaper said Richards was struggling to raise the cash and that Doughty Hanson was waiting in the wings to make an offer.
The price tag is likely to be a little disappointing for Ford. Last December, a British newspaper cited sources as saying that bidding for Aston Martin had been fierce and there was a good chance that it could sell for more than £600 million ($1.18 billion). It added that UBS (nyse: UBS - news - people ), the financial adviser on the sale, had apparently whittled down a list of more than 30 parties who were sent information memoranda to just four contenders.
Ford was down 2 cents, or 0.3%, to $7.91, just after lunch in New York.
The glamorous Aston Martin company, famed for its classic long-hooded coupes, has been part of Ford's Premier Automotive Group since 1994. However, Ford announced in August that it was considering selling the business.
Ford lost more than $12 billion last year. Analysts are seeing the sale of Aston Martin as a quick fix to keep shareholders happy.
Richards said the purchase of Aston Martin was "an incredible opportunity." He added that his consortium, which comprises the Kuwaiti companies Investment Dar and Adeem Investment, was confident it had "all the right ingredients to take Aston Martin to even greater heights."
A few other tycoons were also reportedly interested in Aston Martin. At the end of October, French billionaire Bernard Arnault, whose family controls the world's largest luxury goods group, LVMH, declined to comment on a media report he was chewing over a bid for the sports carmaker.
It was reported that Arnault would buddy up with Belgian billionaire Albert Frere to go on a corporate shopping spree. Arnault, the world's seventh-richest man, said that he and Frere had decided to create a joint investment fund with the objective of providing it with an equity financing capacity of 1 billion euros ($1.26 billion). Aston Martin reportedly fell within the scope of their investment fund.
However, Arnault and Frere, along with former Jacques Nasser, a former Ford chief executive, and Simon Halabi, a secretive Syrian-born tycoon, were knocked out of the race.
Japan's growth rate picks up pace
source: BBC News
Japan's economy, the world's second largest, has grown more quickly than many experts forecast, underlining its emergence from years of stagnation.
The rate of growth was 1.3% in the three months from October to December, up from 1.2% in the previous quarter, Cabinet Office figures showed.
On an annual basis growth was 5.5%, the quickest for three years.
Japan's economy has turned around as consumers and companies have picked up spending and exports have increased.
A separate Cabinet Office report showed that households had become more confident about the outlook for incomes and jobs, with the government's index climbing to 48.4 in February, from 48.1 in January.
Price problems
But analysts said the latest growth figures were unlikely to prompt another rise in rates as concerns remained that that higher borrowing costs could stall the country's economic recovery.
Politicians have asked the Bank of Japan (BOJ) not to rush to raise interest rates for fear that it would stop consumer and company spending in its tracks.
Japan has only just increased its main borrowing cost from almost zero to 0.5%, the highest level in a decade.
At the same time, many analysts are predicting that February's consumer price figures will show that prices actually dropped last month.
"The BOJ won't raise rates for a while if it thinks about prices," said Takeshi Minami of Norinchukin Research Institute.
"Though it seemed to place greater emphasis on rectifying ultra-low rates and preventing an asset bubble when it raised rates last month," he added.
According to the latest government figures one of the main drivers of growth was a 3.1% increase in the capital spending, up from a 2.2% preliminary estimate.
Turkish Jan C/A deficit exceeds forecast
source: Reuters
Turkey's current account deficit was $2.248 billion in January, the central bank said on Friday, growing slightly from last year instead of shrinking as expected.
A Reuters poll had given a median forecast of a $2.100 billion deficit, compared with a shortfall in January 2006 of $2.240 billion.
Turkey's current account deficit is proportionally one of the largest in emerging markets, which makes Turkish assets particularly vulnerable to changes in global investors' risk appetite. A large oil bill is a factor swelling the deficit.
But the gap is expected to grow less this year, helped by sharp increases in interest rates last year which bite into demand for foreign goods.
In January the trade deficit, a major component of the current account, rose just 4 percent in January after a 44 percent rise in January last year.
Markets were unaffected by the current account deficit data, with the lira trading unchanged at 1.4090 against the dollar in after-hours trade.
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