DAILY TRUST
Wednesday, April 20, 2011
21
Busi ness/l nternationa I Goldman posts 720/0 drop' Zimbabwe bans chrome exports, infirst-quarter earnings to build refinery GOLDMAN Sachs Group Inc posted a 72 percent decrease in firstquarter profit as it made less money from trading bonds for clients, The largest US. investment bank posted a profit to common shareholders of$90B million, or $1.56 a share, compared with $3.3 billion, or $5.59 a share, in the same quarter a year ago. Results in latest quarter were also h it by the bank buying back $5 billion of preferred shares from Warren Buffett's Berkshire Hathaway. (Reuters) .
capacity ZIMBABWE will ban the export of chrome from today, and will look to build internal refinery capacity, the Ministry of Mines and Mining Development said yesterday. Zimbabwe, along with SQuth Africa, holds about 90 percent of ,the world's chromite reserves and resources, according to the U.S. Geological Survey. The ban will affect exports to China and South Africa. (Reuters)
S/Africa sees $17bn in new investments by 2014 SOUTH Africa expects 115 billion rand worth of investments flowing into Africa's biggest economy over the next three years, the trade and industry minister said yesterday. Rob Davies told parliament the figure was a "realistic target" and tbe deals would come from the emerging market BRICS powers as well as Japan, Germany, France, the United Kingdom, the United States and countries in the Middle East. "We anticipate that this work programme will translate over the next three years into an investment
Mauritius Ivory Coast rains to boost trade deficit keeps cocoa size, qua lity widenif)9
FAVOURABLE weather in Ivory Coast's cocoa growing regions last week was expected to help boost volumes during the mid-crop harvest, adding to a backlog of beans stockpiled at the nation's ports. Farmers and meteorologists reported abund"!)t rains mixed with lengthy spells of Sun across most regions of the top grower nation, which is erperging from a violent political standoff that halted exports since late-January. Exporters said on Tuesday it could take months to clear the roughly450,00 to 500,00q torUles of cocoa backlogged at the dock, once shipping activities resume. Farmers said mid-crop harvesting was already picking up after the conflict, which ended lastweebvith the arrest of former President Laurent Gbagbo, and signs ~ointed to healthy cocoa volumes J, tl,e next three months. In the western region ofSoubre, at the heart of the cocoa belt, one analyst working for an industrial plantation reported BI miUinletres of rains mixed with sun. Farmers said they were happy ,vith downpours that would help small pods currently on trees to grow. "We had plenty of rain and sunshine. Everything is going well for the mid-crop. There will be lots of cocoa:' said farmer Salam Kone,
whose plantation is on Soubre's outskirts. In the eastern region of Abengourou, an analyst reported 20 millimetres of rain. Farmers said tl,e weather would improve the size of beans to harvest from May. "There has been enough rain. We can expect very big pods'compared to last year and' good for export:' said farmer Joseph Amani from Abengourou. In the southern region of Aboisso, an analyst reported 5B.7 millimetres of rains, Farmers said the weather would provide good condition for the mid:crop as harvesting picks up. "Farmers are returning for the harvest Lots of the beans are big and nearly ripe because of the good weather," said farmer Etiene Yao. In the centre-western region of Daloa, producing a quarter of Ivory Coast's national output; farmers reported two abundant downpours ,that would help the growth of cocoa to be harvested in the next three months: "The rain we've had will help produce many beans and there will be lots of cocoa in the next three months," said farmer Marcel Aka. Good growing conditions were also reported in western regions of Meagui and Gagnoa, in coastal regions of San Pedro and Sassandra and in southern regions ofDivo and AgbovlUe. (Reuters)
MAURITIUS' trade deficit widened sharply year-on-year in February, due mainly to rising fuel and food costs on the import-dependent Indian Ocean island, official data showed yes,-terday. The deficit -- which widened throughout 2010 -- increased by 18.4 percent compared with the same !ponth last year to 5.69 bil'lion rupees', the Central Statistics Office said. Mauritius' year-on-year import costs rose IB.7 percent to II billion rupees. Exports increased 19.1 percent to 5.30 billion rupees, helped by revenues from the export of food and live animals, including monkeys for scientific research, and manufactured articles including clothing. In February, Britain was the main buyer of goods from Mauritius, accounting for 21 percent of its exports, while India supplied 20.2 percent of the island's imports. Mauritius' trade deficit widened 17 percent to 66.528 billion rupees in 2010 as rising imports outstripped growth in exports. (Reuters)
pipeline of projects valued at RI15 billion," he said. The past year saw investments worth 2B billion rand flow into South Africa, creating approximately 13,000 jobs. Foreign investors have been cautious about sending capital because of growing concerns over corruption and the country's rigid labour market, which makes producing goods more expensive when compared to other emerging economies. Turning to international trade, Davies said the stalled Doha Round of talks could collapse.
Oil
slip~
"Renewed efforts to conclude the Doha Developmental Round this year appear to have come up against major, and perhaps tatal, obstacles:' he said. Major stumbling blocks include bigger economies wanting greater access to developing countries in the areas of industrial tariffs and services, while emerging states are wary of acceding to this demand without reciprocity. South Africa recently joined the BRICS grouping that also includes Brazil, RUSSia, India and China. (Reuters)
to -$ 120
BRENT crude oil fell yesterday, slipping below $120 a barrel for the first time.in two weeks, pressure,d by concern about the economic outlook and that high prices could erode demand. Expectations Greece would be forced to restructure its debt added to a bleak economic picture on yesterday, a day after ratings agency S&P cut its outlook for US. credit. Brent crude for June fell $1.75 to $119.B6 a barrel by 1100 GMT, trading yesterday below $120 for tbe fIrst time since April 5. U.S. crude for May, which expires later on Tuesday, was down 99 cents at $106.13. "I think essentially there's been no new oil-related stories and what you are trading off is macroeconomic stories ... so that's weighing on the market," said Amrita Sen at Barclays Capital. OPEC Secretary General Abdullah a1- Badri, speaking at an oil and gas trade fair in Tehran, said he did not expect oil to fall below$IOO this year, even though there was no shortage in the market. He reiterated OPEC's call on consumer nations to revise their tax systems to address what he called "exceptional circumstances," so as to lessen the burden of high prices. The Organization of the Petroleum Exporting Countries has so fur declined to take any formal action to cool oil's rally. Under-
lining that stance, iran's oil minister said on Tuesday any increase in output would not bring down prices.
Top world exporter Saudi Arabia said over the weekend it had cut oil production by BOO,OOO barrels per day (bpd) in March, returning output to December levels, because of weak demand. Oil also fell on Monday after ratings agency S&P revised lower its US. credit outlook to negative. In Europe, financial markets are increaSingly convinced Greece will have to renegotiate the terms of its public debt, recognizing tbat its economy cannot grow fast enough to service a burden that is set to swell to 160 percent of national output. "I guess they're all worried about the economic outlook. .. the downgrading oW.S. debt and the Euro zone with Portugal and nOW they're worried about Greece ... that seems to be tl,e main thing:' said Roy Jordan at Facts Global Energy_ Concerns about how China's attempts to slow economic growth could impact oil demand, as well as high crude inventories in top consumer the United States. were also pressuring oil prices. "you have to start readjusting the value of the commodity:' Jonatban Barratt, managing director of Commodity Broking SerVices in Melbourne said. "All the pressure points that we had before are not there." (Reuters)