Business
Asian shares fall as Iraq crises escalate
TOKYO – Asian shares fell on Wednesday, echoing losses on Wall Street as concerns about escalating violence in Iraq eclipsed stronger U.S. economic data.
The gloom was likely to spread to European trading, where financial spreadbetters expected Britain’s FTSE 100 to open as much as 0.6 percent lower, Germany’s DAX down 0.5 percent, and France’s CAC 40 to weaken 0.7 percent.
“The bears look to be firmly in control and leaning heavily on that sell button as we expect to see a fairly large gap lower, given current volatility, on the open for the major European indices,” Capital Spreads trader Jonathan Sudaria wrote in a note to clients.
U.S. Secretary of State John Kerry urged leaders of Iraq’s autonomous Kurdish region on Tuesday to stand with Baghdad in the face of a Sunni insurgency, as security forces fought the rebels for control of the country’s biggest oil refinery.
A senior U.S. intelligence official said that the insurgents were “well positioned” to hold a broad swathe of territory captured in northern and western Iraq unless the Baghdad government can muster a counter-offensive.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell about 0.4 percent, while Japan’s Nikkei stock average ended 0.7 percent lower.
In volatile U.S. trading on Tuesday, the S&P 500 closed down more than half a percent in its sharpest loss since June 12, after earlier setting a fourth record high in five sessions following upbeat U.S. economic data.
Sales of new homes surged 18.6 percent to a seasonally adjusted annual rate of 504,000 units in May, the highest since May 2008 and the biggest increase since January 1992. Separate data from the Conference Board showed its index of consumer attitudes rose to 85.2 in June from a downwardly revised 82.2 in May.
But U.S. Treasury prices shrugged off the brighter data and yields fell, with the benchmark 10-year rate dropping to 2.580 percent in Asia from its U.S. close of 2.586 percent.
A trio of Fed officials gave investors no reason to believe the central bank’s stance had changed. William Dudley, president of the New York Fed, said the U.S. central bank can wait to raise interest rates until mid-2015 without risking an undesirable rise in inflation.
San Francisco Fed President John Williams said on Tuesday that the U.S. economy is about two years from being “normal,” while Philadelphia Federal Reserve Bank President Charles Plosser said the economy continues to improve, making steady rather than exuberant progress.
With no help from U.S. Treasury yields, the dollar edged down about 0.1 percent to buy 101.89 yen, while the euro also inched lower to 138.71 yen.
“Overall, the yen looks better bid unless the Bank of Japan comes up with its next easing plan,” said Bart Wakabayashi, head of forex at State Street in Tokyo.
Despite the BOJ’s confidence that it will meet its inflation target next year without further stimulus, most economists still believe it will need to ease policy again by December, according to a Reuters poll published on Wednesday.
Japanese Prime Minister Shinzo Abe unveiled a package of measures on Tuesday aimed at boosting Japan’s long-term economic growth, though market impact was muted.
Against the greenback, the euro was slightly higher on the day at $1.3613.
The dollar index also consolidated at 80.293, solidly within the 80.000-81.000 range in which it has been stuck since May.
Crude oil markets were mixed as traders weighed the likelihood of supply disruptions from Iraq.
U.S. prices rose on a Wall Street Journal report that the government has allowed two companies to export ultra-light oil known as condensate, a first step that effectively loosens a 40-year ban on most U.S. crude exports.
U.S. crude for August delivery advanced about 0.6 percent to $106.69 a barrel, after spiking as high as $107.50 early in the session.
Brent crude for August fell about 0.2 percent to $114.24.
“Oil prices have been unusually stable in recent years, but events in Iraq are causing a reassessment of medium-term oil market fundamentals that we expect to translate into a phase of higher long-term prices and more volatile trading conditions,” strategists at Barclays said in a note to clients.
“Geopolitical risks have replaced China’s growth and Fed policy as the main concerns for investors,” they said.
Spot gold slipped about 0.4 percent to $1,312.40 an ounce, after spiking to a more than two-month high of $1,325.90 on Tuesday.
– REUTERS
Business
Tesla Aims for 2028 Commercial Production of Flying Car
Tesla has set a 2028 commercial production date for its new Roadster sports car that can briefly rise into the air using rocket technology.
According to CNN, the date was revealed when the manufacturers demonstrated its functionality on Thursday at a SpaceX testing facility in Texas, United States, where the two-seater vehicle performed a series of manoeuvres, including driving upside down before making a short airborne movement.
The prototype was operated without a driver during the test, with Musk saying the decision was taken “to make sure we don’t kill anyone.”
“Success is not guaranteed. I mean that. It’ll probably work, but if it doesn’t work, we’re at a safe distance,” he said.
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CNN reported that the vehicle uses 10 nozzles and high-pressure air tanks to generate thrust, with Musk claiming it could accelerate from zero to 60 miles per hour in less than a second.
The Tesla boss attributed the development to cooperation between the electric vehicle manufacturer and SpaceX, the rocket company he also leads.
He described the project as “the results of what happens when you have a collaboration with the world’s best car company and the world’s best rocket company.”
Musk also sought to assure spectators that the demonstration was genuine, saying, “We need an audience to prove that it’s not AI or SI. So you guys can tell people you saw it with your eyes, because what you see with your eyes, you will not believe.”
Despite the display, questions remain about whether the vehicle can achieve sustained flight and how practical it would be for everyday transportation.
Roger Conner, curator for vertical flight at the Smithsonian’s National Air and Space Museum, told CNN that combining the requirements of road vehicles and aircraft presented significant engineering challenges.
“Aircraft are extremely sensitive to weight, whereas with ground vehicles you want them to have bumpers and crumple zones and all that,” he said.
“Inevitably, something that is a hybrid between the two is going to be a poor performing aircraft and a poor performing vehicle, and also quite expensive,” he added.
Conner questioned whether the demonstration amounted to flying in the conventional sense.
“We’re not talking about sustained flight. We are literally talking about hopping,” he said.
However, Jim Dukhovny, chief executive of flying car startup Alef, said the technology was achievable, while pointing to the difficulties involved in making such vehicles transition safely from vertical take-off to forward flight.
“It absolutely is 100% feasible,” he told CNN.
“That being said, the hardest part on all eVTOLs, and for us, it’s a transition from (rising) vertical to (moving) forward. It needs to be extremely careful, making sure you do not lose lift, and making sure it’s very stable,” he added.
CNN also reported that Alef’s prototype weighs about 254 pounds, uses eight propellers and is designed to carry one person.
Musk said Tesla intended to begin production of the new Roadster in 2028.
CNN reported that the latest display adds to Musk’s ambitions to push Tesla’s vehicle technology beyond conventional electric cars, although the prototype’s ability to operate as a practical flying vehicle has yet to be established.
Business
Marketers Eye Portion of FG’s Petrol Discount
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to add its member-stations to the petrol discount programme.
It cautioned that the current arrangement could limit the reach and deny vast consumers in underserved communities the benefits of the 30-day discount window.
The PETROAN also urged the FG to allocate at least 30 percent of the discounted petrol volume to outlets operated by its members.
READ ALSO: Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project
The calls followed last week’s announcement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, of a petrol discount at Nigerian National Petroleum Company Limited (NNPC Ltd) retail outlets, with priority given to public transport operators nationwide.
According to the National Publicity Secretary, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, the exclusion of independent marketers could undermine the programme’s effectiveness, particularly in communities where NNPC retail outlets have limited presence.
He argued that independent marketers, with their extensive nationwide distribution networks, were better positioned to extend the benefits of the intervention to consumers in remote and underserved areas.
“Independent oil marketers have over 90 percent coverage and presence in the nooks and crannies of this country. You are giving NNPC that is situated only in the town. So how do the poor masses, whom you intend to ensure that this petroleum product will alleviate their sufferings, how would they now get it?” Ukadike asked.
He said the association was not opposed to the government’s policy but insisted that independent marketers should be included to ensure wider access to the discounted product.
“But it’s government policies; we are not against government policies, but let it be all-inclusive; let independent marketers be part of it,” he said.
Ukadike also urged the government to extend the discount period to 60 days, citing logistical challenges that could delay the movement of petrol from coastal depots to other parts of the country.
“And the 30 days should be extended to 60 days. Because of the circulation of petroleum products, most times it takes two weeks for a truck to leave Apapa and get to Gombe, Maiduguri, because of the bad road and all the rest of them and loading process,” he added.
Similarly, PETROAN National President, Billy Gillis-Harry, urged the Federal Government to allocate 30 per cent of the discounted petrol volume to the association’s retail outlets to facilitate broader national distribution.
Business
Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project
In the bid to transform Tanzania into the East African regional energy hub, the country is on the verge of concluding an agreement with a consortium of energy companies, including a $42 billion LNG project.
It was gathered that the project is designed to tap the 47.13 tcf of gas discovered in Tanzania’s deep offshore fields, part of the country’s estimated 57.54 tcf in total discovered reserves, the sixth-largest in Africa, behind Nigeria, Algeria, Senegal, Mozambique and Egypt.
READ ALSO: Shell Identifies Keys to Nigeria’s Energy Future
Equinor and Shell would be the lead operators, alongside involvement from ExxonMobil Pavilion Energy and Medco Energi, while state oil major, the Tanzania Petroleum Development Corporation (TPDC), would also hold an equity stake in the project.
“It’s almost there,” Khamis Mussa Omar, Tanzania’s finance minister, told Reuters.





