THE PUNCH, 07 JANUARY, 2011

Page 1

Osborne calls on EU to helu banks' recovery

Australian floods to hit coal production for months

I

T will be "some months" until coal mines affected by floods in Queensland are fully operation, the state's mining minister, Mr. Stephen Robertson has said. Operators of about 40 mines have been affected by the floods, according to a British Broadcasting Corporation report on Thursday. Queensland produces mostly coking coal used for steel making, but also

U

produces thermal coal used in power stations. And there are concerns

and economists in Paris on

NITED Kingdom's Chancellor of the Exchequer, Mr. George Osborne, . has called on European leaders to bolster

banks' capital reserves and

take tougher steps to reduce government deficits to help aid economic recovery. The financial crisis that

struck Ireland toward the end of last year is proof that Europe lacks credible plans to strengthen its banks, Osborne will tell politicians Friday. That uncertainty is acting as a brake on the region's economic recovery, he will

the floods will see the price of coal rising - pushing up the cost of steel and electricity.

say, according to a Bloomberg report on Thursday. "On deficits, growth and 路"banks, 2011 is the year

However, Robertson tried

to play down those concerns. "You'll see a jump in spot

Europe must put its own house in order," Osborne will say, according to comments

prices but for our major

market predominately longterm contracts are in existence

Google's

at fixed prices," he told the BBC's World Business News. "So one would not expect

to see significant long-term price impacts, but there will be a spike in the short term, one would expect."

I

NTERNET competition heated up in December but this time between web browsers as Firefox knocked Internet Explorer off the top

Coal worth about 100m Australian dollars (拢64m; $99.7ml was usually shipped out of Queensland

spot for the first time in a major market.

ports every day, he said. "It never rains but it pours - at least if you use coal to

used internet browser in

fuel your power station"

the web analytics firm StatCounter, Sky News reported on Thursday. The Microsoft browser's popularity fell to 37.5 per cent from nearly 45 per cent

"Every day that those ports are not working to capacity

it's not just a hit on the coal companies themselves but on

the

economy

of

Queensland more generally because we extract significant

royalties from the mining of coal," he said. "It's going to take some months to come back fully

Mozilla's open-source application became the most

market share, according to

40 mines are affected and, whilst they have

was more contemporary

Top five browsers in the United Kingdom are Internet Explorer, 50.4 per cent; Firefox, 23.3 per cent; Chrome 16.5 per cent; Safari 7.6 per cent; Opera 1. 1 per

looking and cluttered.

download it, once they see

cent;

it's better they keep it."

newcomer's success has been

two-pronged with a good product backed by effective marketing. He said, "I used to use Internet Explorer as it was the

default search engine at home and at work but then Google launched a new kind of browser that loaded quicker,

a year ago. However the change in consumer attitudes was more

a reflection on Google

G

LOBAL food prices rose to a fresh high in

and

start

and

minerals in the next few

weeks but of course if it keeps raining that might be

2008 that saw prices spark riots in several countries. Soaring sugar, cereal and

oil prices had driven the rise, the report said. The index, which

extended."

measures monthly price

The Queensland floods have led to the temporary

changes for a food basket composed of dairy, meat and

closure of mines that account

sugar, cereals and oilseeds,

for eight per cent of global thermal coal exports, ANZ Bank analyst Mark Pervan has said. Mines with an annual

capacity of 57.3 million tonnes of thermal coal have either declared force majeure or have reduced production because of the rains, he

added. Sites operated by Rio Tinto, Xstrata and Vale are among those to have been affected.

losing

some

popularity worldwide, Internet Explorer has stayed in the top spot overall and in the UK. It seems that because there hasn't been more competition there before the

early pioneers offering browsers had quite a large uptake and a legacy of that still lingers on but I am convinced that Google is going to close the gap further," Holloman said.

that weather"

raise additional capital. Now, amid a widening European

debt crisis, regulators from 27 nations are searching for ways to improve the tests,

which will be repeated this year.

Osborne will also urge tougher steps to reduce government deficits amid high market interest rates in countries such as Greece,

Portugal and Spain. Writing in the Financial

Times on Thursday, Osborne

"comprehensive package early this year" to address "continuing market concern"

This is because wildfires last year in Russia, which

institutions, Maximo Torero,

told the BBe. The recent floods in Australia, which also accounts for 11 per cent of global exports, has compounded the problem, he said.

European

leaders

about sovereign debt. "The

eurozone

must

follow the logic of the single currency and stand more

convincingly behind the euro," Osborne wrote in the newspaper.

Sudan needs clearer oil-sharing deal - Report from wells in the south but

current revenue distribution system has been

the infrastructure remains in

implemented fairly," the

Most of Sudan's oil comes

the north. The current oil-sharing accord between the two

report said. "Mistrust over revenue

sharing was one of the

shares the revenues roughly

primary reasons for the

50:50. In its report, Global

south's temporary pullout

Cameroon, Haiti and Egypt.

Witness says the two sides need to agree a more

arrangement in 2007. Evid~nce suggests that such

There were further riots over food prices in

transparent deal to replace

concerns are not unfounded."

the existing one, which is due

Mozambique in September last year. However, despite high prices, FAO economist

to expire at the end of the m路imth. "There has been much mistrust over whether the

The report also said the Sudanese gove~nment and

averaged 214.7 points last month, up from 206 points in November.

It stood at 213.5 points at the high of June 2008 sparking violent protests in countries

two biggest lenders, both of which passed the tests, to

export ban, the institute's

International Food Policy Research Institute. The price of wheat in particular has risen sharply.

coals

Despite

director of markets, trade and

above the previous record of

recover

banks was underscored last year when Ireland directed its

needed to put in place a

increases in the cost of sugar and, more importantly, cereals, according to the

producing

is prompted to actually

said

December, according to the

will

Union stress tests to restore confidence in the region's

global exports, resulted in an

UN's Food and Agricultural Organisation. Its Food Price Index went

before those mines get back to full production. "It's hoped those mines

"But then because everyone keeps seeing it, and

accounts for 11 per cent of

start

nearby rivers and creeks, it's going to take some time

less

the difficult issues holding back confidence and growth." The failure of European

"a concern".

pumping some water out into

to

was

prices at fresh high - UN The current spike in prices is being caused primarily by

authorisation

''This means confronting

Windows software.

Sky News technology blogger, Mr. Christer Holloman, who made the switch to Chrome himself, said the reason for the

Europe with 38.1 per cent

online.

"At the present time about

released by a Treasury official.

ousts Microsoft from top spot

including

report comes ahead Sunday's referendum on

southern independence.

from

the

power-sharing

adequately accounted for discrepancies in published production figures.

It addsed "Under the current circumstances Sudanese citizens cannot be sure how much oil their country produces and therefore cannot be sure that

the

oil

wealth-sharing

agreement is being implemented fairly. "It is critical that these issues

the region's main oil company

are addressed. A new oil deal between north and south is

- China National Petroleum

essential to prevent a return

Corporation - have

to full-scale war."

not

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