Business

Asian manufacturing picked up pace in October

China's economy expanded 7.8 percent in July-September, snapping two quarters of growth.

HONG KONG (AFP) - Asian manufacturing picked up pace in October, figures showed on Friday, with Chinese activity at an 18-month high but analysts warned that background data indicates fresh headwinds in the coming months.

The broad pick-up will come as good news for the region after a tough few months caused by uncertainty over the US Federal Reserve's stimulus scheme -- which has supported investment in emerging nations.

China provided the stand-out data, with the official purchasing managers' index (PMI) hitting 51.4 last month from 51.1 in September.

The reading from the National Bureau of Statistics (NBS), is the highest since 53.3 in April 2012. Anything above 50 indicates expansion while a figure below signals contraction.

Also Friday, British bank HSBC said its PMI had hit a seven-month high of 50.9 in October, unchanged from a preliminary reading last week, but much higher than its September figure of 50.2.

The numbers add to a growing feeling that China -- a key driver of global and regional economic growth -- was gradually moving out of a slowdown that has lasted most of the year.

China's economy expanded 7.8 percent in July-September, snapping two quarters of growth, while trade and investment have also shown a general improvement.

"China is on track for a gradual growth recovery," HSBC chief economist for China Qu Hongbin said in the bank's release, while ANZ bank economists Liu Li-Gang and Zhou Hao said the figures suggest "the economy is still in an expansion mode".

However, government and independent analysts warned underlying data suggests economic weaknesses remain.

Zhao Qinghe, a researcher at China's National Bureau of Statistic, said on its website: "The forces driving up the PMI reading were imbalanced as the rebound in subindexes other than output remained relatively weak."

And Bank of America Merrill Lynch economists called the official figures "above consensus", adding "further improvement ... is limited".

They said the gain was mostly fuelled by higher output owing to a pick-up in the economy as well as inventory restocking, while new orders, including for exports, slowed.

The news was similar elsewhere.

In Indonesia HSBC said its PMI rose to 50.9, its highest level in four months, from 50.2 in September, driven by a rebound in new work. But HSBC economist Su Sian Lim said: "But the ongoing contraction in work backlogs suggests that overall demand-pull pressures in the economy continue to weaken."

In India, manufacturing continued to shrink, with the HSBC index unchanged at 49.6. The figures add to growing concerns about growth, which has been held back by an exit of foreign cash, economic mishandling, bureaucratic red tape and corruption.

Exporters were boosted by a weaker rupee -- making their goods cheaper abroad -- but importers had to pay more for their inputs. HSBC said input cost inflation hit a 16-month high in October while prices charged by manufacturers rose at their fastest pace since February.

And in Taiwan its PMI fell to 51.6 from 52.6.

South Korea, however, was more upbeat, its PMI jumping into positive territory in October -- hitting 50.2 from September's 49.7 -- while exports rose 7.3 percent, turning around a decline from a year before

The ranks of the jobless swelled by 60,000 to a record 19.45 million in Europe.

BRUSSELS (AP) - The number of unemployed in the 17-nation eurozone reached a record high in September as the bloc s nascent recovery failed to generate jobs, official data showed Thursday.

The ranks of the jobless swelled by 60,000 to a record 19.45 million, according to Eurostat, the European Union s statistics agency. Though the unemployment rate remained steady at 12.2 percent, the previous month was revised up from 12 percent.

"The latest figures put a dent in hopes that the labor market may have reached a turning point," said analyst Ben May of Capital Economics.

A sharp and unexpected drop in inflation also cast doubts over the recovery of the eurozone, which just emerged from recession, and put pressure on the European Central Bank to act. The euro dropped from above $1.3700 to about $1.3640 in midday trading.

Ernst & Young analyst Marie Diron said growth will remain slow and unemployment high until the eurozone finishes cleaning up its banking sector to restore confidence and help boost lending.

"A stable unemployment rate is as good as it gets for the eurozone in the current environment," she said. "Businesses are not yet confident enough about the growth outlook to switch to creating jobs."

The ECB has already cut its key interest rate to a record low to spur lending. But banks, companies and households are still too afraid to lend or borrow money.

The ECB may be pushed into action eventually if the inflation rate keeps dropping. Eurostat said the annual inflation rate fell to 0.7 percent in October from 1.1 percent a month earlier, marking its lowest level in about four years. The ECB is tasked with keeping inflation close to, but below 2 percent.

"Latest developments reinforce our view that the ECB will end up cutting interest rates from 0.5 percent to 0.25 percent sooner or later," said IHS Global Insight s analyst Howard Archer, adding the ECB might take such action as early as in December.

While other analysts think a rate decrease is unlikely in coming months, not least because of resistance from powerful ECB players such as Germany s central bank, the ECB still has other means at its disposal.

It can, among other things, provide more cheap loans to banks to improve their finances and encourage them to lend. It already issued such loans three times, helping stabilize the financial system, and ECB President Mario Draghi hinted several times in recent months that the central bank might consider issuing another round.

A particularly gloomy stat was youth unemployment, it rose to 24.1 percent from 24 percent in August.

It was lowest in Germany and Austria, with 7.7 percent and 8.7 percent, and highest in Europe s southern economies, which have been hit hard by the debt crisis and government austerity measures. They were around 57 percent in Greece and 56 percent in Spain.

The overall unemployment rate showed similar disparities. Germany and Austria had low rates of 5 percent. By contrast, joblessness was 26.6 percent in Spain. In Greece, where the latest figures available were for July, it stood at 27.6 percent.

The unemployment rate for the wider 28-nation European Union remained unchanged in September at 11 percent.

Oil fell for a third straight day and finished October with a second consecutive monthly decline.

NEW YORK (AP) - Oil fell for a third straight day Thursday, and finished October with a second consecutive monthly decline.

Benchmark U.S. crude for December delivery fell 39 cents to close $96.38 a barrel at on the New York Mercantile Exchange. For the month, oil dropped $5.95 a barrel or 5.8 percent.

Ample supplies of oil have weighed on the price. The Energy Department said this week that U.S. supplies increased 4.1 million barrels last week. Over five weeks, supplies have risen by more than 25 million barrels, suggesting muted demand.

The outcome of a two-day meeting of the Federal Reserve's policy committee added to the pressure on oil prices. The central bank's positive tone on the economy indicated that it might be prepared to slow its bond purchases by early next year, sooner than some have assumed.

The withdrawal of stimulus would result in higher interest rates and a stronger U.S. dollar, making oil more expensive for holders of other currencies.

Brent crude, a benchmark for international crude also used by U.S. refineries, fell $1.02 to $108.84 on the ICE exchange in London

Urge government not to take such steps which cause national degradation.

ISLAMABAD (Online) - President Oil & Gas Development Company Limited (OGDCL) Jahangaiz Khan, Thursday, said that OGDCL had deposited approximately Rs 5 billions to the national exchequer in the form of taxes in last five years. 

While addressing the Annual General Meeting (AGM) of OGDCL Officer Association he said that in the last financial year OGDCL paid Rs.129 billion rupees in the form of taxes and earned Rs.90 billion profits hence privatization of this national asset on emergent basis was an international conspiracy.

He said that after the sale of 26% share of OGDCL the Government of Pakistan is going for the privatization of the company and intends to shift administrative affairs of OGDCL in private sector which was a part of international conspiracy.

He said that cause of this plan was to get control on oil and gas reservoir and push the Muslims of the world toward backwardness and degradation. While addressing by the officers Jahangaiz Khan told that present democratic government has prepared a plan of mega institution’s privatization, under this plan nearly 32 govt institutions would be handed over to new liberal capitalism.

He enlighten claim of Govt about privatization of institute going in deficit and said that OGDCL is most profitable company in the Pakistan and its privatization decision is taking only on international behest. OGDCL is playing its pivotal role to combat energy crisis in Pakistan, while its privatization announcement by our Government is a sign and depict that our leaders have covet to sold toil hard of the nation in gratis he added.

Jahangaiz Khan further said that before this commencement govt of Pakistan has privatized and honored Attock Cement and Attock Refinery Ltd. To foreign investors, now the govt. has decided to accolade profitable OGDCL to foreign investors.

OGDCL Officers Association pledged that they would not allow such conspiracies against OGDCL at any rate. OGDCL Officer said that they would not deviate to defend OGDCL in national interest at any forum. They urged that govt should not take such steps which cause national degradation. They also assert that government should resolve public concern and prove a patriot and democratic government.

Barrick suspends construction of Pascau-Lama mine  

Says its earnings release that the decision to re-start will depend on improved project economics.

TORONTO (AP) - The world s largest gold mining company has decided to temporarily suspend construction of its troubled Pascua-Lama gold mine that straddles the border between Chile and Argentina.

Barrick said Thursday in its earnings release that the decision to re-start will depend on improved project economics, the outlook for metal prices, and reduced uncertainty associated with legal and regulatory requirements.

Earlier this year, Chile s environmental regulator stopped construction its side of the border and imposed sanctions on the $8.5 billion mine, citing "serious violations" of its environmental permit.

Barrick has already spent $5 billion on the project, which sits 6,400 feet (5,000 meters) above sea level. Barrick had hoped to begin production in early 2014, and previously warned shareholders that it might abandon Pascua s Chilean side because of construction delays.

.

FPCCI calls for according NDA to India

Urges both countries for early implementation of SAFTA under SAARC agreement.

ISLAMABAD (Online) - Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has called upon the government to grant Non Discriminatory Access to India at the earliest.

FPCCI meeting was held under acting president Muhammad Ali at Federation House on India Pakistan trade relations.

Muhammad Ali said that Pakistan had slashed its tariffs on Indian imports considerably, but we still face problems in accessing the Indian market owing to the presence of non-tariff barriers, including delays at the customs clearance stage, massive subsidization of agriculture sector in India, standardization of HS codes between both countries and non banking channels.

S.M. Muneer said that Pakistan was sincere in the process of trade normalization. At the same time, he said that while Pakistan allowed Indian imports easily, the same ease in conducting business was still lacking from the Indian side which should be addressed.

Yawar Ali emphasized on the need that both countries should ensure early implementation of SAFTA under SAARC agreement.