Hong Kong stocks close 1.38% up

HONG KONG, May 18 (Xinhua) -- Hong Kong stocks moved
up 232.21 points, or 1.38 percent to close at 17,022.91 on Monday.

Turnover climbed to 66.38 billion HK dollars (8.57
billion U.S. dollars), from Friday's 58.06 billion HK dollars (7.50 billion U.S.
dollars).

The index traded between 16,334.36
and 17,062.49.

The gain seen in the afternoon session was attributed
to strength in property companies and Mainland's stock market, according to
analysts who expected the blue-chip index to consolidate in the near term after
the market's recent strong rally, though some said ample liquidity should lend
the market support.

Property firms led Monday's gains on a positive
outlook for the sector. New World Development advanced 6.9 percent to 12.76 HK
dollars, Sino Land jumped 4.1 percent to 11.30 HK dollars, and Henderson Land
was up 3.5 percent at 38.50 HK dollars.

JPMorgan Monday raised the Hang Seng Index 2009
year-end target to 19,800 from 16,600, and recommended investors to buy more
property stocks.

However, Credit Suisse downgraded Hong Kong's
property sector on Monday to Underweight from Market Weight, because a recent
strong run up in property stocks has not been matched by fundamental
improvements.

The benchmark Shanghai Composite Index, which tracks
both A and B shares, ended up 0.3 percent at 2,652.78, rebounding from an early
fall to 2,589.61, led by gains in coal and power companies, which supported the
Hong Kong market.

Hong Kong's H-share index, which tracks the Hong
Kong-listed shares of Mainland-registered firms, rose 1.9 percent to 9,792.24.

Hong Kong bourse operator Hong Kong Exchanges and
Clearing rose 5.8 percent to 109.70 HK dollars on strong turnover.

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Hong Kong stocks up 1.51% following Wall Street rally

HONG KONG, May 15 (Xinhua) -- Hong Kong stocks advanced 249.01 points, or
1.51 percent to close at 16,790.7 on Friday.

Boosted by overnight rally on Wall Street, the benchmark Hang Seng Index
opened higher in the morning and fluctuated in the positive territory throughout
the trading.

The bounce of Hong Kong stocks was believed to have mitigated losses in
previous sessions this week, when share prices tumbled after robust gains in
seven consecutive days.

The day high was 16,953.41 and the day low stood at 16,736.18.

Turnover shriveled to 58.06 billion HK dollars (7.50 billion U.S. dollars),
from Thursday's 63.65 billion HK dollars (8.22 billion U.S. dollars).

Index heavyweight HSBC outperformed by rising 3.1 percent to 64. 3 HK
dollars and the sole market operator HKEx was up 1.7 percent to 103.7 HK
dollars.

Hong Kong-listed Chinese financial companies all registered increase in
share prices. The country's biggest lender ICBC surged3.6 percent to 4.65 HK
dollars; China Construction Bank (CCB), which has been under close scrutinize
among investors after the Bank of America sold large numbers of CCB shares, rose
1.9 percent to 4.79 HK dollars. Insurer Ping An advanced 1.6 percent to 49.35 HK
dollars and its arch rival China Life was up 0.9 percent to 27.55 HK dollars.

Oil-related stocks were all higher, with Sinopec up 1.0 percent to 8.09 HK
dollars, CNOOC up 2.0 percent to 9.98 HK dollars and ChinaPetrol up 1.7 percent
to 6.1 HK dollars.

Local property stocks grabbed a fair share of Friday's market rally. Cheung
Kong, the business conglomerate headed by Hong Kong's richest man Li Ka-shing,
closed 1.4 percent higher at 83.15 HK dollars, while SHK Properties, the leading
residential developer in Hong Kong, gained 1.3 percent to 81.6 HK dollars.

Despite price rise in most blue chips, market observers believe downward
pressure still hangs over the market, citing falling investment figures in the
Chinese mainland and sharp deterioration of GDP in the first quarter in Hong
Kong.

China's Ministry of Commerce announced Friday that the amount of direct
foreign direct investment into China fell 21 percent year on year in the first
four months, signaling that a recovery isn't yet firmly in place in the world
third largest economy.

The Hong Kong SAR government said it would downgrade annual growth
estimation for 2009 as exports and unemployment continue to worsen in the Asian
financial hub. (7.743 HK dollars = 1 U.S. dollar)

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Hong Kong stocks close 3.04% lower

People walk past an index board
displayed in Hong Kong, China, May 14, 2009. Hong Kong stocks retreated
3.04 percent, or 517.93 points to close at 16,541.69 on
Thursday.(Xinhua/Wong Pun Keung)
Photo
Gallery

HONG KONG, May 14 (Xinhua) -- Hong Kong stocks retreated 3.04 percent, or 517.93 points to close at 16,541.69 on Thursday, tracking U.S. market falls overnight prompted by declining retail sales.

The benchmark Hang Seng Index opened 2.52 percent lower in the morning and soon dived as much as 3 percent, led by falls of heavyweights including the HSBC and China Mobile.

The index touched the day high of 16,630.33 before shedding more points to the day low of 16,422.28.

Turnover was 63.65 billion HK dollars (8.22 billion U.S. dollars).

The Hong Kong market tumble came after U.S. stocks plunged overnight over a weak-than-expected retail sale released by the U.S. Commerce Department.

Analysts said the 0.4-percent drop in retail sales in April in the world largest economy, which indicated that a recovery may not be "just around the corner," further dented market confidence.

Among the 42 constituents of the Hang Seng Index, only two stocks registered growth. Tencent, China's leading instant message service provider, rose 9.8 percent to 79.9 HK dollars after it reported a 94-percent rise in first quarter profit. Tencent touched the record of 82 HK dollars earlier during Thursday's trading.

Another gainer is China Unicom, up 0.23 percent to 8.85 HK dollars.

HSBC contributed to market tumble by decreasing 4.2 percent to 62.35 HK dollars and ChinaMobile lost 4.2 percent to 73.15 HK dollars after resuming trading. The sole market operator HKEx plunged 7.1 percent to 102 HK dollars as more financial institutions turned downbeat about its earning prospects.

Profit-taking in oil-related stocks pushed the sector lower, with Sinopec down 4.6 percent to 8.01 HK dollars, PetrolChina down4.2 percent to 6 HK dollars and CNOOC shedding 4.3 percent to 9.78HK dollars.

Shares of Hong Kong-listed Chinese banks suffered loss of different degrees. China Construction Bank fell 1.9 percent to 4.7HK dollars, ICBC down 2.4 percent to 4.49 HK dollars and the Bank of China down 2.1 percent to 2.85 HK dollars. (7.742 HK dollars is equivalent to 1 U.S. dollar)

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HKEx Q1 profit down 49%

HONG KONG, May 13 (Xinhua) -- Hong Kong Exchanges and Clearing saw a 49
percent year-on-year drop in the profit attributable to shareholders in the
first quarter of this year, to 834.2 million HK dollars (107.75 million U.S.
dollars), the only stock market operator in Hong Kong announced on Wednesday.

According to first quarter results, HKEx recorded income of 1.34 billion HK
dollars (173.08 million U.S. dollars), down 41 percent on a year earlier, while
operating expenses fell 7 percent to 354.4 million HK dollars (45.78 million
U.S. dollars). The profit attributable to shareholders was 834.2 million HK
dollars, with basic earnings per share at 78 cents.

The average daily turnover value on the Stock Exchange was 44.7 billion HK
dollars, 55 percent lower than the same period last year. The average daily
number of derivatives contracts traded on the Futures Exchange and stock options
contracts traded on the Stock Exchange also dropped 5 percent and 27 percent to
195,499 and 194,279.

HKEx Chairman Ronald Arculli said the persistence of negative market
sentiment had a significant impact on both the primary and secondary markets in
the first quarter.

The plunge in global consumption was magnified by worsening unemployment
and tighter credit conditions which caused aggressive business retrenchment in
most economies.

"Despite the difficulties ahead, HKEx continues to work hard to ensure it
operates a quality market built on a solid financial infrastructure with sound
products and services to bolster confidence in our marketplace."

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IIF: Private capital flow to emerging markets to drop hugely

By Wu Ye, Qu Shaohui

BEIJING, June 12 (Xinhuanet) -- Dramatic decline in
net private capital flows to emerging markets will be seen in 2009, according
tothe Institute of International Finance (IIF).

Ina report released Thursday at the Spring
Membership Meeting,the IIF predicted that the volume of private capital
flows to emerging markets this year will likely be 141 billion U.S. dollars,
which is less than one-half of the 2008 total of 392 billion dollars and far
below the record of 888 billion dollars seen in 2007.

Regional divergences are also highlighted in the IIF
report. Most significantly, projections of flows to "Emerging Asia" and Latin
America have been revised upwards while revising down the estimates of net flows
to "Emerging Europe."

In Asia, the net private capital flows to emerging
markets is projected 88 billion dollars this year ascompared to59
billionin 2008 and record 296 billionin 2007. Aggregate net
repayment of private sector capital by "Emerging Europe," of 33 billion dollars,
is now foreseen in 2009, after net inflows of 214 billion dollars in 2008.

Nevertheless, a modest revival of flows is now
starting to become evident and the IIF projects that the 2010 volume of private
capital flows to emerging markets will reach 373 billion dollars.

The IIF said that following a period of extreme
weakness between October 2008 and March 2009, flows to emerging markets appear
to have improved somewhat over the last two months, albeit to levels far below
the early months of 2008.

William Rhodes, First Vice Chairman of the IIF's
Board of Directors, Chairman and President, Citibank and Senior Vice Chairman,
Citi, stressedthat moderate recovery in capital flows inemerging
markets partly reflects a rise in investor confidence both in response to
measures taken bygovernments in emerging markets, including China, to
stimulate their economies and to the international support that emerging markets
are now starting to receive.

In the report, IIF projected that net private capital
inflows to China, which moderated from a peak of 153 billion dollars in 2007 to
88 billion dollars in 2008, are set to stabilize at around 60 billion dollars
this year and next year.

Rhodes also noted, "The International Monetary Fund
must deploy its expanded resources with skill to assist its member countries to
achieve economic recovery. And, it is also important that every effort be made
to increase the resources available to the World Bank Group, including the
International Finance Corporation, and to the regional development banks,
including the Asian Development Bank. These institutions have major roles to
play at this time."

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IATA: World Airline industry faces risks and challenges

KUALA LUMPUR, June 8 (Xinhua) -- Fuel bill, efficiency, cash reserves,
capacity management, and partnerships were the risks and challenges of the
present airline industry, according to the International Air Transport
Association (IATA) on Monday.

The industry fuel bill for 2009 would account for 23 percent of its
operating costs with an average price of oil at 56 U.S. dollars per barrel
(Brent), the association said as its 65th Annual General Meeting officially
kicked off here.

While, the fuel bill for 2008 was 165 billion dollars or 31 percent of
operating costs at an average of 99 dollars per barrel.

"Greedy speculation of oil prices must not hold the global economy hostage.
Failure to act by governments would be irresponsible," said IATA's Director
General Giovanni Bisignani.

He predicted that the industry's fuel bill decline by 59 billion dollars to
106 billion dollars this year.

Bisignani also said the industry gained efficiency over the last decade.
Its labor productivity improved by 71 percent, fuel efficiency increased by 20
percent and load factors rose by 7 percent.

"The dramatic downturn in demand could push the non-fuel unit costs higher,
which cannot be cut in proportion," said Bisignani.

Bisignani further noted that the third challenge was cash reserves.

Global airlines were in a better cash position than when the industry was
facing the challenges of September 11, he said.

Cash reserves of 70 billion dollars or 13 percent of revenues were stronger
than the 9 percent reserves that airlines had in year 2000.

"But our pocket are not that deep. A long L-shaped recovery could drain the
industry of cash," said Bisignani.

Also, Bisignani noted that airlines should be careful in capacity
management since global load factors for the first quarter of 2009 were down
about 3 percent compared to 2008.

"This is less than the falls experienced in some recent crises as a result
of airlines better matching capacity to falling demand," said Bisignani.

He said that the 4,000 aircraft expected to enter commercial aviation fleet
in the next three years would make the capacity management as an ongoing
challenge.

Bisignani also noted that limitations on ownership continued to hinder
broader partnership across borders among airlines.

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Global airline loss forecast doubles to 9 bln U.S. dollars

KUALA LUMPUR, June 8 (Xinhua) -- The International Air Transport Association (IATA) revised its global airline financial forecast for 2009 on Monday, nearly doubling the global loss to 9 billion U.S. dollars.

The increased loss prediction reflected "a rapidly deteriorating revenue environment", the IATA said as its 65th Annual General Meeting officially opened here.

In March this year, the IATA forecast the loss for 2009 at 4.7 billion U.S. dollars

The association also revised its loss estimate for 2008, raising the figure to 10.4 billion U.S. dollars from the previous estimate of 8.5 billion U.S. dollars.

The aviation industry has faced the most difficult situation due to the current economic meltdown, said Giovanni Bisignni, IATA's Director General and Chief Executive Officer (CEO), describing it as "unprecedented".

"The ground has shifted. Our industry has been shaken," he said, noting the recession was the most significant factor impacting the industry's bottom line.

The IATA also revised its revenues forecast for 2009 to 448 billion U.S. dollars, an unprecedented decline of 15 percent from 2008.

On air cargo, the IATA forecast global airlines would carry 33.3 million tonnes of freight, a decline of 17 percent from 2008.

Passenger demand is expected to contract to 2.06 billion travelers, down 8 percent compared with 2008, according to the association.

The global airline revenues from cargo transport are expected to drop 11 percent, while the revenues for passenger transport are expected to decrease by 7 percent, it said.

Special Report: Global Financial Crisis

Oil prices rise, but unlikely to spike again

BEIJING, May 23 (Xinhua) -- Crude oil prices are
likely to continue rising, but there will be no major spike in the market in the
coming months as world oil consumption still remains weak, analysts said.

Global crude prices, which plummeted from 147.27 U.S.
dollars per barrel to below 40 dollars last year, have witnessed a moderate yet
steady rebound over the past months, reaching 61.5 dollars on Thursday at the
New York oil market, marking a three-month high.

The reason for the recent rally is that the U.S.
government reported a surprise decline in crude and gasoline inventories as the
driving season approaches, Wall Street Strategies' senior research analyst,
Conley Turner, said.

"The rally in oil is also supported by the fact that
there is a sense of growing optimism among market participants that the economy
is not getting worse and is in fact, turning a corner," Turner said.

However, analysts also warned that the current oil
price levels were not in line with the underlying weak global economic
conditions. They said that runaway crude oil prices were therefore unlikely to
be seen in the coming months.

"If you have a look at the fundamentals in the market
at the moment, the inventories in the U.S. are still at 19-year highs and
there's no real indication that demand has re-entered the market yet," Ben
Westmore, an energy analyst at the National Australia Bank, said.

The International Energy Agency (IEA) said on Friday
that global oil demand would hit a 28-year low this year because optimism about
an economic recovery was not reviving the appetite for energy.

The rebound in oil prices is largely connected with
the performances of the financial markets, instead of the balance of supply and
demand, the Paris-based organization said, adding that the world's oil demand
has shown no signs of recovery with the absence of fundamentals to back the oil
market.

Xie Guozhong, an independent economist in China, also
believes that the recent price rebound cannot be explained by analyzing the
balance of supply and demand, as financial markets play a major role in pushing
up prices.

The large scale stimulus packages launched by some
developed economies boosted capital flow into the international oil market
raising prices, Xie, a former Morgan Stanley chief economist for the
Asia-Pacific region, said.

Judging by the current global economic situation,
analysts said oil prices may occasionally rise above 63 U.S. dollars per barrel,
but it was unlikely to see any major price hikes this year. They said for the
most part oil prices would fluctuate between 50 and 60 dollars.

According to a short-term outlook released last week
by the Energy Information Administration of the U.S. Energy Department, prices
are expected to average about 55 dollars per barrel for the rest of 2009, and 58
dollars per barrel in 2010.

EAC increases budget for 2009/2010 fiscal year

DAR ES SALAAM, May 23 (Xinhua) -- The East African Community (EAC) has
increased its annual budget by 34 percent for the 2009/2010 fiscal year with a
total budgeted amount of 54.25 million U.S. dollars.

Of the budgeted total, 50.6 percent is meant for development expenditure
while the rest is meant for recurrent and emolument expenditures, according to
Monique Makaruliza, secretary of the EAC Council of Ministers.

The secretary also unveiled that 51.5 percent of the budget would be
contributed by the five EAC member states of Burundi, Kenya, Rwanda, Tanzania
and Uganda while the rest would be contributed by development partners.

The 2009/2010 budget will focus on such issues as consolidating the
community's customs union, finalizing the negotiations of the community's
envisaged common market protocol and promoting intra-community trade and
investment.

The five countries combine to cover 1.9 million square kilometers, to have
120 million people and to enjoy a gross domestic product of 47 billion U.S.
dollars.

Though budgeted with 23.41 million dollars for the 2008/2009 fiscal year,
the regional integration bloc of five countries is expected to spend to the tune
of 40.49 million dollars for that budgeted period.

Kenya, Rwanda, Tanzania and Uganda are each budgeted to contribute 5.6
million dollars toward the community's 2008/2009 budget while Burundi is
budgeted to contribute 1 million dollars.

China surpasses U.S. to become Brazil's biggest trading partner

BRASILIA, May 4 (Xinhua) -- China replaced the United States to become
Brazil's biggest trading partner, said Brazil's Ministry of Development,
Industry and Exterior Trade on Monday.

According to the trade balance released by the ministry, the sum of
Brazil's exports and imports with China reached 3.2 billion U.S. dollars in
April, over the 2.8 billion dollars in its trade with the U.S.

Trade Minister Welber Barral said the change was "historic," as the U.S.
has been Brazil's biggest trading partner since the 1930s.

According to Brazil's official statistics, the bilateral trade volume
between Brazil and China reached 36.44 billion dollars in 2008, increasing 55.9
percent from 2007, among which Brazil's export volume to China hit 16.4 billion
dollars, import volume 20 billion dollars, rising 50.8 percent and 56.9 percent
from the previous year respectively.

However, Barral said that the Brazilian government is trying to diversify
the exports to China, which till now are mainly soya, cellulose, fuel, and
manufactured products.

Crude prices surge to six-month high

NEW YORK, May 6 (Xinhua) -- Crude prices surged to a six-month high on Wednesday after a slowdown in private sector job losses in the United States boosted hopes for a turnaround in the economy.

U.S. private sector job losses slowed in April as employers cut491,000 from the pay rolls, less than an expected loss of 650,000.Investors believed that the U.S. economy may be on its way to recovery.

On Tuesday, Fed Chairman Ben Bernanke gave his most optimistic prediction yet about the end of the U.S. recession, saying he expects the economy to start growing again this year.

An unexpected decline in U.S. gasoline stocks also boosted the rally. The Energy Department's Information Administration said on Wednesday that gasoline stocks fell by 200,000 barrels to 212.4 million barrels last week.

Crude levels for the week ended May 1 rose by 600,000 barrels to a fresh 19-year high at 375.3 million barrels, according to the data. Analysts had expected a buildup of 2.2 million barrels.

Light, sweet crude for June delivery was up 2.50 dollars, or 4.6 percent, to settle at 56.34 dollars a barrel, the highest since Nov. 14, 2008.

In London, Brent prices rose 2.03 dollars to settle at 56.15 dollars a barrel on the ICE Futures exchange.

S Korean banks' corporate loan growth recovers in April

SEOUL, May 11 (Xinhua) -- Growth of South Korean banks' lending to
companies restored in April thanks to government credit guarantees, the central
bank said Monday.

According to the Bank of Korea (BOK), local banks' outstanding loans to
companies stood at 472.4 trillion won (381.6 billion U.S. dollars), marking a
month-on-month increase of 3.22 trillion won (2.6 billion U.S. dollars).

The April rise compared with a 2.1 trillion-won (1.7 billion-U.S. dollar)
increase in March, the central bank said.

The rise in loan growth comes as bank loans to smaller companies picked up
with state-run agencies' providing loan guarantees, the BOK said.

Local banks' loans to smaller companies climbed by 3.2 trillion won (2.6
billion U.S. dollars) to come in at 412.3 trillion won (333.1 billion U.S.
dollars), while those to larger companies marked an increase of mere 19.1
billion won (15.4 million U.S. dollars) to reach 60.1 trillion won (48.5 billion
U.S. dollars, the BOK added.

The South Korean government has endeavored to help local lenders increase
loans to smaller firms by providing credit guarantees as lenders stayed
concerned over their financial health.

China's Q1 bilateral trade with three major partners fall

BEIJING, May 11 (Xinhua) -- China's bilateral trade with the United States,
the European Union and Japan, its three major trade partners, continued to fall
in the first quarter, the General Administration of Customs said in a report on
Monday.

The bilateral trade volume between China and the U.S. dropped to 62.08
billion U.S. dollars in the first quarter, down 15.7 percent year on year.
Export volume to the U.S. declined to 25.52 billion dollars, falling 14.9
percent from the previous year.

China's trade surplus against the U.S. dropped to 28.96 billion dollars in
the first quarter, down 13 percent year on year.

In March, export to the U.S. contracted for the fifth month in a row to
16.45 billion dollars, but it was the first month-on-month growth since the
fourth quarter last year, according to the report.

The bilateral trade volume between China and the European Union slumped to
75.19 billion dollars, down 19.8 percent year on year. Export to the European
Union fell to 17.21 billion dollars, contracting by 20.2 percent year on year.

Germany, Netherlands and the U.K. ranked the top three among China's
European trade partners, with bilateral trade volume at 21.63 billion dollars,
8.07 billion dollars and 7.7 billion dollars, respectively.

China's trade volume with Japan slumped to 46.07 billion dollars, a drastic
year-on-year decrease of 23.8 percent, which was 4 and 8.1 percentage points
higher than decline of trade with the European Union and the United States.

Hong Kong close 1.74% lower on profit-taking

Special Report:
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HONG KONG, May 11 (Xinhua) -- Hong Kong stocks shed 301.92 points, or 1.74
percent to close at 17,087.95 at the end of Monday trading, as investors rushed
to take profit gained during the seven-day rally starting on April 30.

The benchmark Hang Seng Index opened slightly lower at 17,381 and advanced
to the day high of 17,685.64 before moving downward to the day low of 17,032.44.
The market retrieved some ground upon closing.

Market turnover expanded to 92.13 billion HK dollars (11.90 billion U.S.
dollars), from Friday's 86.77 billion HK dollars (11.21 billion U.S. dollars).

Analysts say the market could face further consolidation as economic
fundamentals are not good enough to support the current market level.

Aside from profit-taking, the Hong Kong market was thought to be dragged
down by China's mainland bourses, which moved into negative territory after days
of considerable gains.

The Chinese government said the country's main inflation index fell 1.5
percent year-on-year in April, a result much better than anticipated.

However, the good news seemed unable to lend any momentum to the retreating
stock market, with the Shanghai Composite down 1.8 percent and the Shenzhen
Component Index down 3.09 percent.

Heavyweight HSBC gained 0.3 percent to 66.1 HK dollars, among other
constituents that defied the down trend.

China Mobile dropped 1.2 percent to 75.3 HK dollars and another telecom
service provider China Unicom rose 0.11 percent to 9.25 HK dollars.

Shoe maker Yue Yuen plunged 7.2 percent to 16.07 HK dollars after news that
the company would be kicked out of the Hang Seng Index and replaced by
electricity producer China Resources Power Holdings on June 8.

Financial stocks fell cross the board. China's biggest lender ICBC slid 1.9
percent to 4.71 HK dollars, Bank of China lost 2.37 percent to 2.88 HK dollars
and Bank of Construction fell 6.7 percent on concerns Bank of America will sell
shares in the company.

The property sector was also down. Henderson Land 5.2 percent to 37.6 HK
dollars, Cheung Kong down 1.8 percent and New World Development down 2.1.

Utilities stocks failed to buckle the market fall, with HK Electric down
0.71 percent and MTR Corporation down 5.37 percent. (7.7420 HK dollars = 1 US
dollar)

Steel deal shows Australian firms competitive, PM says

CANBERRA, May 11 (Xinhua) -- Australian Prime Minister Kevin Rudd said on Monday that the awarding of a 20 million Australian dollars (14.6 million U.S. dollars) destroyer contract to BlueScope Steel showed Australian companies can win defense contracts against the world's best.

"This is a great achievement. It shows not only can Australian companies compete on defense projects with the best in the world, they can win and win on their merits," Rudd said in a statement.

Asked if the planned emissions trading scheme would affect BlueScope, Rudd said the company had indicated it welcomed the government's announcement of a slower start to the scheme, which was now due to start in July 2011 instead of a year earlier.

"The government has great confidence in the industry's future and the company's future," Rudd was quoted by the Australian Associated Press as saying.

Rudd said he was confident Australian companies would be heavily involved in the 8 billion Australian dollars (6.13 billion U.S. dollars) destroyer project.

"I'm confident there's going to be maximum delivery of Australian project content," Rudd said.

Rudd announced on Monday morning that Bluescope Steel had won the contract to supply steel for the Australian navy's three new air warfare destroyers.

The contract will run over six years with BlueScope Steel to produce around 3,000 tonnes of steel per ship.

BlueScope Steel is a flat product steel producer with operations in Australia, New Zealand, Asia, the Pacific and North America.

Special Report: Global Financial Crisis

BlueScope Steel Australia awarded navy contract

CANBERRA, May 11 (Xinhua) -- Australian Prime Minister Kevin Rudd announced on Monday that Australia's steel producer BlueScope Steel was awarded a 20 million Australian dollars (14.6 million U.S. dollars) contract to supply steel for Australia's three new navy air warfare destroyers.

"This is a great achievement. Australian steel for Australian ships for Australian defence, that's what we're here today to celebrate," Rudd told reporters.

According to the Australian Associated Press, the contract will run over six years with BlueScope Steel to produce around 3,000 tonnes of steel per ship.

"Through this new contract they (BlueScope) will support jobs for Australian workers and flow-on economic benefits for their communities," Rudd said.

Rudd said the 8 billion Australian dollars (6 billion U.S. dollars) project would see the first of the three ships delivered in 2014, the largest defence project in Australia's history.

BlueScope Steel is a flat product steel producer with operations in Australia, New Zealand, Asia, the Pacific and North America.

Global financial crisis produces huge negative impacts on Nigeria's economy

Special Report:Global Financial Crisis

By Gladys Nyong, Li Huailin

LAOGS, March 5 (Xinhua) -- The global financial crisis is now anon-issue to the Central Bank of Nigeria governor Charles Chukwuma Soludo even he insisted that the impact of the looming crisis was very little to Nigeria's economy.

For him, the country's financial system had shock absorbers to cushion the external shocks.

The CBN governor prided the country's capital adequacy which is put at 22 percent against 10 percent capital adequacy ratio of foreign banks. As recession set in, presenting itself in low sales, business closures, foreign investment down turns, low stock prices in the nation's economy, he set in monetary policy that would allow more money to circulate and banks would access funds anytime they have the need.

Soludo had highlighted that other central banks had pumped in over 3.3 trillion U.S. dollars into various economies. The CBN governor had reduced liquidity ratio of banks from 40 percent in August 2008 to 30 percent.

This freed about 1.7 trillion naria (11.4 billion U.S. dollars)for banks' use in increasing their liquidity. Bank's aggregate capital base hit 9 trillion naira (30.4 billion dollars) toward the end of that year but that measure could not stop the deepening recession that had set in.

The fall in the price of crude oil which hovers above 30 dollars per barrel and above represent over 70 percent fall from its high peak price by July last year.

A review of the effects of the global financial crisis in various sectors will give a clearer picture of the challenges the country is facing.

Stock Market:

The Nigerian stock market had experienced boom in 2006 and 2007 with investors profiting from their investment in the market.

Bank shares and other penny stocks had gained value far above their initial offer price. Banks even sold initial public offers and offer for subscription of shares on credit to investors and recouping their debts on the monthly salaries of workers. But the global financial crisis saw shares tumbling down by over 50 percent loss.

Zenith banks' shares, for instance, that was 34 naira (0.23 dollar) by 2007, was now 15 (0.1 dollar) naira as on March 2. The recession has caused foreign investors to sell their shares and transfer the funds to resuscitate their own ailing economies. Share capitalization that over 10 trillion naira (67.1 billion dollars) is down to 5.323 trillion naira (35.7 billion dollars).

The CEO of financial Derivatives Bismark Rewane had predicted that Nigerian banks may be susceptible to the global financial crisis if oil prices continued to dwindle.

A business trader laments on how he invested about 5 million naira (33,550 dollars) in the stock market and the stock value have gone down to barely 250,000 naira (1,677 dollars).

Most investors have similar woes but some stock market experts think that now that share prices are low, this is the time to buy stocks when the market is bearish.

Investment and Employment:

Apart from foreign direct investment which has dwindled, local investment and production are suffering. In February, Paterson Zochonis and Unilever, major toiletries manufacturers of Joy toilet soap and close-up tooth paste, announced their intention to pack up business operations in Nigeria.

The company's staff strength is over 5,000. Dunlop Nigeria plc, Manufacturers of tyres also closed shop this year due to losses in billions of naira in operations.

Organizations are abundantly shedding staff, especially in the financial sector, to effectively utilize shareholders' funds.

On Feb. 26, Nigeria's minister of labor and productivity Adetokumbo Kayode said that about 40 million Nigerians, mostly between the age of 18 and 25, are jobless.

According to the minister, the World Bank presented the figure to the Nigerian federal government.

Project Financing

The federal government over the years spends two thirds of its revenue on recurrent expenditure (salaries of government officials and agencies). This leaves about a third to project development and infrastructure.

The government had bench marked the price of crude oil at a reference price of 65 dollars per barrel and had to review it to 45 dollars per barrel for 2009 fiscal year.

With the price of crude oil going down to about 35 dollars per barrel it leaves the government project financing at a limbo. The federal government has a deficit financing of 1.9 trillion naira (12.7 billion dollars) for 2009, built into its budget.

Former Minister for Finance Shamsudeen Usman said Nigeria needs between 40 billion and 60 billion dollars to fund major infrastructure.

It expects to get this through a 500 million dollar Sovereign Bond issue and Public Private Partnership (PPP) to develop major road infrastructure.

So it is very hard for the Nigerian government to spare funds for major infrastructural projects.

US, China economic projects to increase international copper demand

Special Report:Global Financial Crisis

LUSAKA, March 4 (Xinhua) -- Zambia's Standard Chartered Bank has said the stimulus package in the United States and China will increase demand for copper and prices should appreciate, Zambia Daily Mail reported on Wednesday.

The 787 billion U.S. dollars stimulus package in the United States will include expenditure on copper-intensive projects such as public transport and school buildings while China has a stimulus package of 568 billion dollars to boost the infrastructure market, which is copper-intensive, the newspaper said.

Meanwhile, the bank has increased its consumer banking deposit book to over 1.2 trillion kwacha (about 220 million U.S. dollars) as at December 2008 following the successful "Bank a Ride" campaign embarked on last year.

The bank's managing director Mizinga Melu said the campaign was aimed at increasing deposits and rewarding existing customers.

Melu said the campaign allowed the bank to remain open for business and focus on continued lending coupled with product innovation and better service delivery.

"Whilst it is generally accepted that the economic environment in Zambia, like the rest of the world, is highly challenging to most businesses. We remain confident in the economic prosperity of this country," she said.

She said copper prices were expected to rebound this year as demand increases with a weakening US dollar, adding that in China, wire and cable manufacturers were reported to have increased production in recent weeks with usage rates now running at 90 percent.

"Standard Chartered Bank continues to believe that demand will be a key driver for copper demand in the months ahead," she said.

"In the short-term, we forecast that demand for copper will remain fairly weak with prices averaging between 3,200 and 3,600 U.S. dollars per tonne. Experts say the year end closing price will be just above 3,700 dollars," she said.¡¡

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Opposition says Australian to face high taxes and interest rates

Newly elected opposition leader Malcolm Turnbull is seen speaking during a news conference in Jakarta in this April 9, 2007 file photo.(Xinhua/Reuters Photo)
Photo Gallery

CANBERRA, May 10 (Xinhua) -- Australians could face higher taxes and higher interest rates for a decade or more to pay for the federal government's 100 billion Australian dollars (73 billion U.S. dollars) spending in the past year, the federal opposition said on Sunday.

"I understand why they have some deficit and some
debt, but the problem is they have nearly committed up to 100 billion Aust
dollars (73 billion U.S. dollars) in new initiatives since the last budget,"
Opposition Leader Malcolm Turnbull told ABC Television.

Treasurer Wayne Swan will hand down the 2009/10
budget on Tuesday, which has been expected to show the deficit growing by up to
70 billion Aust dollars (51.1 billion U.S. dollars) and tax revenue down by 200
billion Aust dollars (144 billion U.S. dollars) over the next four years because
of the global financial crisis.

Turnbull will deliver the coalition's response to the
budget on Thursday.

"We will be responsible, we will not be reckless,
will be fair dinkum with the Australian people about what can be afforded, we
will give detailed policies with full costings prior to the next election,"
Turnbull said.

Special
Report: Global Financial Crisis

GM posts net loss of $6 bln for first quarter

CHICAGO, May 7 (Xinhua) -- General Motors Corp. (GM) posted a net loss of 6 billion U.S. dollars in the first quarter of this year amid a global economic downturn and low sales that have helped push the automaker to the brink of bankruptcy, reports reaching here from Detroit said Thursday.

According to a report by the Detroit News, GM spent 10.2 billion dollars more than it took in during the first quarter, a cash burn that was partially offset by 15.4 billion dollars in federal loans that has kept the company afloat since December.

GM ended the quarter with 11.6 billion dollars in cash and marketable securities, down from 14.2 billion dollars at the end of 2008.

The automaker's revenue was 22.4 billion dollars down from 42.4billion dollars in the first quarter last year.

The automaker, surviving on federal loans, has until June 1 to reach money-saving concessions with the United Auto Workers and bondholders or face a potential Chapter 11 bankruptcy filing.

GM President and Chief Executive Officer Fritz Henderson has said a bankruptcy filing is probable but not the preferred route.

"The rumors and speculation about bankruptcy had some impact in terms of our overall retail share performance," Chief Financial Officer Ray Young said Thursday. "That clearly impacted our overall level of sales and production," he said.

The loss comes on a day in which GM is restarting concession talks with the United Auto Workers and presses ahead with plans to cut plants, jobs, dealerships and eliminate about 44 billion dollars in debt as part of a broad restructuring plan.

GM's restructuring plan involves cutting 21,000 U.S. factory jobs by next year, 7,000 more than originally planned, and closing16 of its 47 U.S. manufacturing plants by 2012.

GM also reiterated Thursday that it plans additional cuts among the ranks of salaried employees and executives.

"This is a defining moment in the history of General Motors, and we are committed to our plan, which we believe will lead to a stable and sustainable operating structure with a strong balance sheet," Henderson said.

"Our goal is to fix this business once and for all to position ourselves to win in the long-term," he added.