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Wednesday, 8 February 2012

European freeze may last to end of February



Wed Feb 8, 2012 7:24am EST

* High-pressure system may not clear until end of February

* Weather system's size makes it hard to forecast

By Yeganeh Torbati

LONDON, Feb 8 (Reuters) - The worst February cold spell Europe has seen in decades may last until the end of the month, leading meteorologists said, raising the prospect of an extended spike in European spot gas prices.

"We do have higher confidence in a change by mid-February, but not to milder weather," Leon Brown, a meteorologist at The Weather Channel in the UK, told Reuters.

"We expect a colder plunge from the Arctic with northerly winds as the blocking ridge declines eastwards to Russia, this time a blocking pattern developing to our west over the Atlantic. February will probably remain a cold month right to the end."

Cold polar air from northern Russia flanking an area of high pressure has prevented warmer weather from moving in across the Atlantic over Europe, plunging a wide swathe of the continent into sub-zero temperatures for much of the past 10 days.

Officials from the World Meteorological Organization (WMO), speaking at a briefing in Geneva this week, also did not rule out the possibility of cold temperatures lasting for the rest of February.

Omar Baddour, who coordinates the WMO's climate data monitoring programme, said there was a chance the pressure system might start lifting next week, but said it could remain until the end of the month.

A difference in pressure between Europe and the Arctic known as a "negative Arctic oscillation", part of the cause of the freezing weather, is expected to take two or three weeks to return to equilibrium, Baddour said, meaning there may be no early thaw.

Though the phenomenon of the high-pressure system itself is not unusual, the dramatic turn to below-normal temperatures after weeks of mild winter weather took experts by surprise, Brown said.

"It's actually quite unique and a bit baffling how this winter has developed," Brown said. "It's unusual for it to develop so suddenly and have it become a persistent block toward the end of January and February."

The cold spell is the strongest one to happen in the month of February in 26 years, said Georg Mueller, a forecaster at Point Carbon, a Thomson Reuters company.

"It was in 1986 when we had the last similarly severe cold weather (in February)," Mueller said.

The sheer size of the current Siberian blocking pattern has made it difficult to predict how it will move, Brown said.

"In this instance this big blocking of cold air ... seemed to influence the way the winds behaved rather than the other way around," he said. "We didn't expect the cold block to become so persistent and then move westward."

Even computer models are having trouble making forecasts for when the system will clear out of Europe, Brown said.

"Many of the computer model runs keep on trying to bring a breakdown about five or six days ahead, but they continuously backtrack and delay the pattern change," he said. "There have been a wide number of model solutions from six days out recently."

Already, the cold snap has driven UK gas prices up to their highest levels since 2006, hitting above 100 pence per therm on Tuesday, a surge of more than 15 percent .

Russia curtailed gas exports to Europe last week just as demand reached all-time highs, forcing countries like Italy to increase imports from Algeria and extract stored gas.

Protracted cold temperatures and increased domestic demand could force Russia to cut its exports to Europe again.




Gas, Petrol, Heating Gas, Energy and Utilities maybe surge due to extreme weather.

Europe Extreme Weather VS Europe Stock Market Performances 8/2/2012

Europe Extreme Weather VS Europe Stock Market Performances 8/2/2012





Symbol Name Up
Last Trade
Change
^ATX ATX 2,260.007:42AM EST 41.10 (1.85%)
^BFX BEL-20 Up
2,286.758:13AM EST
 0.49 (0.02%)
^FCHI CAC 40
Up
Up
Up

3,426.428:13AM EST
 14.88 (0.44%)
^GDAXI DAX 6,802.788:01AM EST  48.58 (0.72%)
^AEX AEX General 326.33Feb 3  3.27 (1.01%)
^OSEAX OSE All Share Up
468.588:01AM EST
 6.05 (1.31%)
^OMXSPI Stockholm General
Up
Up

338.098:19AM EST
 1.52 (0.45%)
^SSMI Swiss Market 6,184.498:02AM EST  26.90 (0.44%)
^FTSE FTSE 100
Up
Up
Up
Up

5,893.538:01AM EST
 3.27 (0.06%)
FPXAA.PR PX Index 1,022.808:13AM EST  20.50 (2.05%)
ESI500000000.MA IGBM 897.588:00AM EST  6.22 (0.70%)
MICEXINDEXCF.ME MICEX Index 1,559.529:02AM EST  3.49 (0.22%)
GD.AT Athex Composite Share Price Index Up
814.488:02AM EST
 12.27 (1.53%)


According to the comparison, it seemed to be not affected YET. 

Tuesday, 7 February 2012

NYSE Stocks Picks 8th February 2012

NYSE Stocks Picks 8th February 2012

 PFIZER PFE.N - NYSE




Bristol-Myers Squibb Company (BMY) - NYSE




News on Australia Flood 2012

Australia Floods 2012



Brisbane, Australia, Monday, Feb. 7, 2012





Flooded property during an evacuation of flood victims, 29 miles south of Charleville in Queensland state, Australia, Monday, Feb. 6, 2012


Maranoa River in flood at Mitchell in Queensland on February 2, 2012


An aeriel view of the swollen Balonne River in Queensland

BHP and Australia Northern Territory Flood 2012

Share Price BHP BHP Billiton Ltd 7/2/2012

The share price of BHP on NYSE seemed unaffected YET by the Australia Northern Territory Flood 2012. But take notice on this. Below are news related BHP in this period.

Dr Marius Kloppers (born August 26, 1962) is CEO of BHP Billiton, the world's largest mining company. He is presently the group president of BHP's non ferrous metals division.

Flooding continues to impact BHP Billiton
Reuters | Wed, 20 Jul 2011 09:27

BHP Billiton reported a bigger-than-expected quarterly jump in metallurgical coal production from flood-hit eastern Australia, but warned that the flood impact would continue to hold back production for the rest of 2011.

BHP said metallurgical coal output jumped 19% from the previous quarter to hit 7.9 million tonnes, above expectations for 7 million tonnes, but output was still 28% below levels a year ago as mines continued to operate below peak capacity.

"While production did improve in the June 2011 quarter ... we continue to expect production, sales and unit costs to be impacted, to some extent, for the remainder of the 2011 calendar year," BHP said on Wednesday in its fiscal fourth quarter production report.

Australia's central bank on Tuesday warned the recovery in coal exports after flooding in Queensland state earlier this year was taking "significantly longer than earlier expected", and the return to full production could be delayed until early next year.

The slower recovery would weigh on growth and keep GDP expansion below forecasts, the bank warned, after the economy suffered its biggest decline in 20 years in the first quarter when extensive flooding hit coal exports.

West Australian iron ore output increased 7% on the quarter to 35.5 million tonnes, in line with expectations for 35 million tonnes. That took full-year production to 134.4 million tonnes, reflecting a rapid expansion programme underway to meet strong demand from Asian steel mills.

BHP said it ran its iron ore division in the June quarter at an annualised run rate of 155 million tonnes.

BHP is the world's no.3 iron ore producer behind Rio Tinto and Vale of Brazil.

Although its iron division is bigger, analysts have focused on coal because of concerns over the company's ability to ramp up production after the floods.

Coal is Australia's second biggest export earner after iron ore, seen generating A$60bn worth of export revenue in fiscal 2012.

BHP's close rival Rio Tinto warned last week that its Australian coal operations were still recovering from the floods. Rio has already lowered its hard-coking coal output guidance for full-year 2011 to 8 million tonnes from 9.3 million tonnes previously.

The heavy rains and cyclones that battered collieries in Queensland state's Bowen Basin, where BHP Billiton mines most of its metallurgical coal in partnership with Mitsubishi Corp , took the greatest toll on output.

Rolling work stoppages at six of the BHP Billiton-Mitsubishi alliance's seven mines, as union workers press for greater job security, are also impacting production.

The targeted mines have a combined production capacity of more than 58 million tonnes per year of metallurgical coal used to make steel and account for about a fifth of the global trade. Analysts have estimated a loss of between 500,000 tonnes and 1 million tonnes. 

YAHOO NEWS FULL COVERAGE ON QUEENSLAND FLOODS


http://au.news.yahoo.com/full-coverage/qld-floods/a/-/article/12840430/bhp-profit-down-but-still-9-3-billion/


BHP PROFIT DOWN BUT STILL $9.3 BILLION
By Greg Roberts, AAP



BHP Billiton has posted a weaker than expected first-half profit of $US9.941 billion ($A9.3 billion) but it was still one of the strongest in corporate history.

Chief executive Marius Kloppers emphasised the company's diversification on Wednesday but it was the iron ore and petroleum divisions that dominated, representing more than 75 per cent of $US15.7 billion ($A14.58 billion) in earnings before interest and tax (EBIT).

The net profit was 5.5 per cent weaker on BHP's $US10.5 billion ($A9.83 billion) profit in the prior corresponding period and $US13.1 billion ($A12.26 billion) in the second half, both records for ASX companies.

The company's shares were 33 cents, or 0.9 per cent, down at $37.57 at 1242 AEDT.

There were no share buybacks announced and the company declared a fully-franked interim dividend of 55 US cents (A51.47 cents), up from 46 US cents at the same time last year but unchanged from the previous half, disappointing some investors.

Analyst Peter Esho from City Index described the result as solid but noted increased gearing, with net debt of $US21.5 billion ($A19.97 billion) - an increase of $US15.6 billion ($A14.49 billion) - and larger exposure to iron ore and petroleum.

Europe-driven global economic volatility, industrial strife in Australian and South America and poor weather pushed down commodity prices and led to production constraints.

Analysts had expected the world's biggest miner to post a net profit of about $US10 billion ($A9.36 billion) in the six months to December 31.

The petroleum division surprised by producing better-than-expected EBIT of $US3.9 billion ($A3.62 billion), despite low US domestic gas prices that have fallen since it spent $US15 billion ($A14.04 billion) on shale gas assets there.

Mr Kloppers would not say whether or not BHP would write down those gas assets but he expected improvements in oil production to offset them.

Iron ore's EBIT contribution increased 36 per cent to $US7.9 billion ($A7.34 billion) with prices that fell late last year offset by a boost in production.

The worst performers were aluminium, base metals, nickel and diamonds and the outlook is challenging, with Mr Kloppers admitting that he wanted to continue selling smaller, less material assets.

He described the result as "robust and predictable" considering market sentiment was changing monthly.

"This strong and predictable performance reflects our strategic positioning as a more diversified company by geography by product and by market," he told reporters.

He said he was still cautious about the economic outlook in 2012 but emphasised optimism for long-term commodity demand.

That optimism is underlined by BHP's plans to increase iron ore production to 350 million tonnes a year by 2020 (it is currently 178mtpa) and its recent $US779 million commitment to building an outer harbour at Port Hedland for shipments.

"That is predicated on structural drivers of industrialisation and urbanisation, with our more diversified portfolio playing into early, mid and late stage commodities," he said.

"We are extremely well-positioned to capitalise on this demand."

Industrial action including strikes and lower grades led to a 16 per cent decline in copper production at the Escondida mine in Chile.

While production of coking coal and thermal coal improved, industrial action and weather had meant BHP's Queensland coal operations ran at about 20 per cent below capacity.The positive in that was that there was "latent capacity" to be unlocked, including improved production to be achieved at Escondida beyond 2012, Mr Kloppers said.


Thursday, 2 February 2012

Temporary licence for Lynas rare earths plant in Malaysia and its issues

Malaysia approves temporary licence for Lynas rare earths plant


AELB CHAIRMAN
Y. Bhg. Prof. Datuk Dr. Sukiman Sarmani
Lecturer
Faculty of Science and Technology
National University of Malaysia

Feb 1 (Reuters) - Malaysian authorities approved a temporary operating license for Australia's Lynas Corp.'s $200 million rare earths processing plant, a move seen as crucial to easing China's grip on the supply of minerals used in products from smart phones to hybrid cars.

The approval by the country's Atomic Energy Licensing Board on Wednesday eases uncertainty for Lynas and investors after speculation that the licence could have been rejected in the face of opposition from political parties and residents near the plant ahead of national elections expected within months.

"The temporary licence has been approved with conditions. If these conditions are not met, the temporary licence can be suspended or cancelled and subsequent applications for the licence will not be considered," the atomic licensing board and the Ministry of Science said in a joint statement.

Malaysian government officials have said the final decision on the so-called pre-operating licence will be made by Prime Minister Najib Razak and his cabinet, but an opposition politician has already called for a judicial review .

Fuziah Salleh - PKR vice-president

"I am disappointed, but I expected this move from the Malaysian government," said Fuziah Salleh, an opposition member of parliament for Kuantan in Pahang state where the plant is being built.

She said opponents would file for a judicial review of the decision, especially to voice their concern that radioactive residue from the plant's operations could contaminate the environment.

"The main issue is the permanent disposal facility, the government has asked for the waste to be shipped back to the source -- which is Mt Weld but Australia has said it will not take the waste back. So Malaysians are stuck with it at the expense of profits for Lynas."






The Atomic Energy Licensing Board (AELB) today clarified that Lynas Corporation has yet to be issued a Temporary Operating Licence (TOL).

The TOL, which was approved on Wednesday, would only be issued once Lynas made the required payments and the AELB appointed an independent, third-party assessor.

These payments comprise the licencing and processing fees, the first instalment of the US$50 million to the Malaysian government and the cost of AELB’s third-party assessor.







Lynas's Share Price After being approved for a Temporary License





Lynas warns on any move to shut Malaysia rare earths plant

(Reuters) - Australia's Lynas Corp warned against any move by Malaysia's political opposition to shut the company's $200 million rare earths processing plant, saying on Tuesday such action would deter other foreign investment in the country.

An opposition member of parliament for Kuantan, where the controversial plant is being built, on Monday told Reuters the opposition would stop the plant if it won elections expected to be called within months.

Lynas Executive Chairman Nicholas Curtis

Lynas Executive Chairman Nicholas Curtis dismissed Kuantan MP Fuziah Salleh's view as only one view within what would make up the political coalition against the government and said the main opposition PAS party supported the Lynas plant.

"She is the only person who has come out and said that the opposition would potentially revoke (a license). I do not consider the words of a known opponent to carry necessarily the PAS party position at all," Curtis said, adding that he did not believe her view represented the PKR party's policy either.

"It would certainly not be stable for foreign direct investment in Malaysia were that situation to occur," he told analysts and reporters on a conference call.

Lynas is awaiting a temporary license to start operating the rare earths plant and is expected to receive a decision from the cabinet of Prime Minister Najib Razak next week, based on whether the plant meets safety standards for handling radioactive material.

"We look forward to hearing the final decision of the government in the very near future," Curtis said, declining to comment on whether any conditions may be attached to the temporary license.

The plant, which is 91 percent complete and on track to be able to start producing in the June quarter, will process rare earths from Lynas's Mount Weld mine in Australia.

The operation is key to breaking China's grip on the supply or rare earths metals, crucial in high-tech and green products ranging from smartphones to hybrid cars.

Curtis said quotas imposed by China on rare earths exports as it deals with environmental problems at some domestic operations were likely to constrain supply for some time.

"We do expect that prices will continue to reflect a structural deficit in the market for a period of time to come," Curtis said.



Lynas sells bonds to fund Malaysian refinery

Lynas, owner of one of the few operational rare earth mines outside of China, has agreed to sell $US225 million ($214 million) in convertible bonds to help fund what will be the world’s largest refinery of the minerals in Malaysia.

Mount Kellett Capital Management agreed to buy the bonds on behalf of funds it manages, Lynas said today. Lynas also pushed back the planned start up of the refinery to the second quarter this year from the first quarter because of extra engineering requirements and the monsoon season.

Lynas is awaiting Malaysian approval to start refining rare earth ore produced at its Mount Weld mine in Australia. Malaysia’s Atomic Energy Licensing Board will make a recommendation at the end of this month, which will then be considered by cabinet, Malaysia’s International Trade and Industry Minister Mustapa Mohamed told reporters last week.



NYSE Stocks Picks 3rd February 2012




NYSE Stocks Picks 3rd February 2012



Procter & Gamble Company (The) (PG) -NYSE 










American Electric Power Co Inc (AEP)