Spot rubber recovers on global cues

Spot rubber recovers on global cues


KOTTAYAM, JULY 4:
The domestic rubber market recovered on Monday. In the spot, prices made moderate gains in tune with the domestic and international futures.

According to observers, there has been fresh buying and short covering expecting revised quotes from the tyre sector and the volumes were better.

Sheet rubber improved to Rs 213 (210) a kg, according to traders. The grade closed firm at Rs 211.50 (210) a kg both at Kottayam and Kochi, according to the Rubber Board.

The July series flared up to Rs 214.48 (208.38), August to Rs 216.98 (210.03), September to Rs 214.29 (208.05), October to Rs 215.50 (207.90), November to 215.69 (207.40) and December to Rs 219 (212.80) a kg for RSS 4 on the National Multi Commodity Exchange.

Meanwhile, the key Tokyo rubber futures advanced more than 3 per cent buoyed by rising oil prices. RSS 3 (spot) inched up to Rs 207.95 (207.13) a kg at Bangkok. The July futures bounced back to ¥383.9 (Rs 211.05) from ¥370.5 a kg during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 213 (210); RSS-5: 210 (208); ungraded: 207 (204); ISNR 20: 209 (206) and latex 60 per cent: 135 (133.50).





Chennai will be largest auto cluster in the globe, says Chief Minister



Business Line Tamil Nadu Chief Minister Ms Jayalalithaa with the CII team members- ( from left) Mr Kris Gopalakrishnan, Vice President; Mr Adi Godrej, President Designate; Mr T.T. Ashok ( partially seen), Chairman, CII ( Southern Region); Mr R. Dinesh, Vice Chairman, CII Tamil Nadu State Council ; Mr B. Muthuraman, President, CII; and Mr Chandrajit Banerjee, Director General, at the National Council Meeting of the CII, in Chennai on Tuesday. - Photo : Bijoy Ghosh
Industry captains urged to invest in State; power fears allayed

CHENNAI, JULY 5:
The Tamil Nadu Chief Minister, Ms J. Jayalalithaa, made a strong pitch to the manufacturing sector to invest in Tamil Nadu, even as she allayed industry's fears on the prevailing power shortage in the State.

The State Government will soon bring out a clear cut set of policies for promoting investments in infrastructure including power, ports and ship building.

The policy document, Vision Document 2025, “will meet your expectations,” she said, addressing the national council of the Confederation of Indian Industry, where over 100 chief executives from top companies had gathered. Tamil Nadu is also working fast to tackle power shortage, she said.

Govt support

The Government hopes to develop Chennai, which is set to emerge among the top five auto clusters globally, as the world's largest destination for automotive industry.

It is now a strong pitch for automotive sector with companies making bicycles, cars, trucks, earth moving equipment, rail coaches and even battle tanks present in the city.

“Tamil Nadu will be your ideal platform to generate wealth,” Ms Jayalalithaa assured the heads of the corporate sector, whose companies, according to CII representatives, together account for over two-thirds of India's GDP.

In a speech peppered with quotes from economists, literary figures and statesmen, the Chief Minister laid equal emphasis on the State Government's support to equitable development and social issues.

Improving the quality of life of the general public is the focal point of the economic policies. The development agenda envisages a great role for the captains of the industry, she said.

Goals on focus

Tamil Nadu will achieve the UN Millennium Development Goals on poverty eradication, education, healthcare, environment sustainability, gender equality and global partnerships by 2015.

The State will go beyond these targets to fully do away with poverty and unemployment, asserted Ms Jayalalithaa.

Mr Adi Godrej, President Designate, CII and Chairman, the Godrej Group, urged the State Government to come out with a five-year plan that charts out measures to achieve 10 per cent growth in the State GDP.

He requested Ms Jayalalithaa to look into the process of expediting building plan approvals which have come to a standstill in the last six months.





Brent crude oil rises above $112 after BarCap note
July 5, 2011




LONDON, July 5 (Reuters) – North Sea Brent jumped more than $1 per barrel on Tuesday after Barclays Capital raised its forecasts for crude oil in 2012, outweighing worries over the global economy.

ICE Brent futures for August rose $1.43 to a high of $112.82 before easing back to trade around $112.25 by 1100 GMT. U.S. crude was up 60 cents at $95.54 per barrel from Friday’s close. U.S. financial markets were closed on Monday for the July 4 national holiday.

Barclays Capital on Tuesday raised its 2012 forecast for Brent by $10 to $115 per barrel, and upped its 2012 forecast for U.S. crude by $4 to $110. The bank said in a note it left its Brent forecast for 2011 unchanged at $112 but cut its 2011 forecast for U.S. crude by $6 to $100.

“The increase in expectations is due to a forecast further reduction in global spare capacity in 2012, together with a significant intensification of the geopolitical background to the oil market,” Barclays Capital said.

“Our detailed 2012 supply and demand forecasts show a continuation of robust emerging market demand,” it added.

The Barclays Capital report helped the market reverse losses that had pushed Brent down to an early low of $110.45.

Deutsche Bank said earlier it cut its forecasts for Brent in 2011 to $114 from $117.50, and for 2012 to $117 from $117.50. It said it expected Brent to climb to $125 in 2015.

U.S. light crude futures were expected to average around $100 in 2011, Deutsche Bank said.

Commodities markets are concerned about the outlook for the global economy, the Greek debt crisis and a stronger dollar.

China, the world’s second-biggest oil consumer and a major consumer of commodities, is experiencing a slowdown in economic growth, sounding warning bells across financial markets.

Ratings agency Moody’s said on Tuesday that China’s local government debt may be 3.5 trillion yuan ($540 billion) larger than estimated, which could make banks liable for deeper losses and threaten their credit worthiness. [ID:nL3E7I507Y]

CHINA WORRIES

The news follows data last week showing China’s factory sector grew at its slowest pace in 28 months in June, fuelling fears of a big drop in demand, which could impact suppliers worldwide.

“Almost all the economic data is weak and demand data is also poor. China is always a concern for oil markets because the country is such a big consumer,” said Christophe Barret, global oil analyst at Credit Agricole.

In Europe, the market’s initial optimism over euro zone policymakers’ approval of an emergency bailout for Greece was tempered by Standard & Poor’s negative view of a planned second Greek bailout package. [ID:nL6E7I408N]

Oil traders were keeping a wary eye on the United States, where Treasury Secretary Timothy Geithner has warned of huge risks if Congress fails to raise the $14.3 trillion debt ceiling by Aug. 2, potentially triggering a default.

Participants awaited the key U.S. non-farm payrolls report on Friday for signs economic growth in the world’s top oil consumer has regained traction.

Data on U.S. durable goods and factory orders for May due at 1400 GMT on Tuesday will also give an indication of the state of demand in the world’s biggest oil consumer.

Weekly U.S. oil inventory data from industry group the American Petroleum Institute and the government’s Department of Energy will be delayed by a day to Wednesday and Thursday, respectively, due to Monday’s Independence Day holiday.

Oil prices came under some pressure from a stronger dollar, which rose 0.2 percent against a basket of currencies, making dollar-denominated oil more expensive.

According to technical price charts, Brent crude needs to clear resistance at $113 a barrel before developing a decent rally towards a short-term resistance target at $121.47, while U.S. crude is expected to rise to $98.13 a barrel, said Reuters market analyst Wang Tao. [TECH/C]





Car sales get a boost in June
July 5, 2011




DETROIT — Falling gas prices and more aggressive discounting from two Japanese automakers have pulled June car sales out of their May doldrums, according to analysts, but the market remains weaker than its pace in the first four months of the year.

The March 11 earthquake and tsunami damaged some assembly and parts plants in northern Japan, causing Toyota, Honda and Nissan to delay production of more than 500,000 vehicles.

“There is some increase due to more incentive spending, especially from Honda and Toyota,” said Jesse Toprak, who tracks sales for TrueCar.com. “Even so, Toyota is still going to be down 10 percent compared to last year and Honda will be down about 14 percent.”

Japanese automakers are beginning to make up lost production, but Nissan has been hurt less because it has only 25 percent of its global production in Japan, compared with 45 percent for Toyota. Honda assembles in Japan only 13 percent of the vehicles it sells in North America.

Eight of Toyota’s 12 North American-built models returned to pre-earthquake production June 6. Total North American production is expected to match that level in September, said Steve St. Angelo, head of Toyota’s North American manufacturing and engineering.

Honda said it expects its North American factories to return to full production in August for all models except the 2012 Civic.

“It’s going to really take several months for their production to come back to 100 percent of pre-earthquake volumes,” Toprak said, “probably not before the fourth quarter.”

Edmunds.com, a consumer information and market research firm, estimates Americans bought new vehicles at an annual rate of 11.9 million, slightly better than May’s 11.8 million annual pace but down from more than 13 million between February and April.

TrueCar’s Toprak said Toyota and Honda spent more on rebates and subsidized financing in June after dealers reported consumers were staying away.

Consequently, those two automakers likely will regain some, but not all, of the market share they lost in May.

General Motors, Ford and Chrysler are expected to hold on to most of the market share they gained in May but are spending less on marketing incentives because dealers don’t have large inventories.