news blog from Zora

UPDATE 1-KMG Chemicals Q4 profit falls

Thu, 13 Oct 2011 08:17:42 -0400

Oct 13 (Reuters) - Speciality chemicals maker KMG Chemicals quarterly profit fell, hurt partly by a rapid increase in raw material costs in its electronic chemical segment.For the fourth quarter, the company posted a net income of $1.2 million, or 10 cents per share, compared with $3.4 million, or 30 cents per share, a year ago.Net sales for the fourth quarter rose 19 percent to $74.2 million.Analysts, on average, were expecting earnings of 11 cents a share on revenue of $73.5 million, according to Thomson Reuters I/B/E/S.”Absent a global recession, we believe we will see organic growth in our Electronic Chemicals business in 2012 and beyond,” chief executive Neal Butler said in a statement.Shares of the Houston, Texas-based company, valued at about $160.3 million, closed at $14.81 on Nasdaq on Wednesday.

FTSE falls on euro zone bailout woes, growth concerns

Wed, 12 Oct 2011 05:08:32 -0400

* Miners retreat as Alcoa results miss expectationsBy David BrettLONDON, Oct 12 (Reuters) - Britain’s top share index fell early on Wednesday, as Slovak lawmakers rejected a plan to expand the euro zone rescue fund and growth worries continued to stifle momentum after Alcoa kicked off the earnings season in the U.S. with whimper.The parliament of tiny Slovakia — the only country in the 17-member currency zone that has yet to approve the plan — stalled the expansion of a bailout fund to rescue the euro zone from its debt crisis on Tuesday.Deutsche Bank said although there maybe some near-term uncertainty it is still inclined to doubt that this is the end for the EFSF.”Another ‘no’ vote would be likely to put some pressure on the ECB, with ‘intervention’ by the European Central Bank in bond markets perhaps needed in order to ensure some stability in markets while policy makers work through the issues,” Deutsche Bank said.But the ‘no’ vote raised fears among investors that governments keen to look after their own interests would only exacerbate the debt crisis.”Concerns are growing amongst traders that this is another sign that Europe’s bureaucratic process is just too cumbersome to deal with the debt crisis,” Jonathan Sudaria, a dealer at Capital Spreads, said.”The fact that countries are beginning to resort to protectionism as a policy tool to stimulate their stagnant domestic economies has traders worried that an era of trade wars could be looming, hitting global growth.”Evidence the fallout from the ongoing troubles in the euro zone was reaching beyond its boarders came as third-quarter results of U.S. aluminium group Alcoa, the traditional curtain-raiser for the U.S. earnings season, disappointed.Alcoa’s chief executive CEO Klaus Kleinfeld warned of weak economic conditions through the year, particularly in Europe, “as confidence in the global recovery faded.”In the UK, riskier assets such as financials and miners led the fallers, as London’s blue chip index continued to retreat away from the psychologically important 5,400 barrier.The index was down 23.49 points, or 0.4 percent at 5,372.21 by 0751 GMT, having snapped a four-day winning streak on Tuesday.Banks were among the top fallers, as Societe Generale cut target prices across the sector.Europe’s banks will have to achieve a significantly stronger capital position under a quick-fire regulatory health check and may need to raise some 100 billion euros, banking and regulatory sources said on Tuesday.VOLATILE MARKETSThe tumultuous market conditions continued to be a problem for the world’s largest listed hedge fund manager Man Group , which reported its flagship AHL fund fell 5.5 percent last week.Man’s shares fell 6 percent, while Goldman Sachs cut its target price on the firm to 230 pence from 290 pence.Miners continued to beat a retreat having the led the index higher during its brief bull run — the sector gained near 20 percent in four days - as Credit Suisse cut its near-tem rating on the sector to “benchmark” from “overweight” citing headwinds seen in key emerging markets.London-listed Fresnillo fell 5 percent after precious metals miner cut its cut its silver production guidance for 2011.”Fresnillo has delivered its first disappointing production results since listing,” Oriel Securities says in a note.But Gold miner Randgold Resources topped the short list of FTSE 100 gainers, up 1.5 percent reflecting an edge higher in the price of the yellow metal as investors fled to so-called safer assets.Elsewhere, Europe’s biggest defence contractor BAE Systems fell 1.4 percent as it warned its sales could be hit from U.S floods and budget doubts.Utilities suffered as brokers downgraded their ratings on firms across the sector. Traders said United Utilities , down 1.4 percent, was being hit after Morgan Stanley cut its recommendation on the firm to “equalweight”.Scottish and Southern (SSE) fell 1.2 percent as Goldman Sachs added the firm to its conviction sell list, while International Power (IPR) shed 1.2 percent as the same broker cuts its rating to “sell” from “neutral”.”SSE Trades at a sector premium despite below average growth, high leverage and strong gearing to UK spreads. On our estimates, IPR trades at a premium, despite a weak UK spread outlook and recent FX weakness,” Goldman Sachs says.Ex-dividend factors knocked 2.70 points off the FTSE, with Capital Shopping Centres , Old Mutual , Smith & Nephew , Tesco , Wolseley , and WPP Group all losing their payout attractions.On the macro front, British jobless numbers will be released at 0830 GMT, with the claimant count seen rising by 25,000 in September, after a 20,300 increase in August, while August ILO unemployment rate is forecast to rise to 8.0 percent, up from 7.9 percent in the previous month.

Website to tackle sexualisation of children -UK PM

Wed, 12 Oct 2011 03:47:13 -0400

The website, ParentPort, aims to give parents a platform for voicing their concerns about children’s exposure to sexually suggestive imagery and to warn each other about inappropriate material.”There is a growing tide of concern up and down the country among parents who, like me, are concerned about our children being exposed to inappropriate advertising and sexual imagery and growing up too early,” Cameron said.”I welcome the progress being made, including the ParentPort website being launched today that will give parents a strong voice and a single hub to air their concerns about inappropriate products, adverts or services,” he said.Cameron met Minister for Children, Sarah Teather, as well as industry representatives, to discuss measures to end children’s exposure to sexually suggestive content in advertising, programmes and other services.Leading British internet service providers — BT, Sky, TalkTalk, and Virgin — also revealed they would offer parents an “active choice” of blocking websites with adult content on their home internet and laptops at the time of purchase.The Advertising Standards Authority has announced stricter guidelines on sexual images in outdoor advertising while the outdoor advertising industry has agreed to a voluntary ban on advertising adult services near schools.But Cameron, who has three young children, warned that more needed to be done.”I call on businesses and industry to go further and in the new year I will again review progress because I am determined we are really making changes that support parents and protect our children,” he said.The summit followed an independent report into the issue by the chief executive of the Mothers’ Union which made a series of recommendations to businesses, broadcasters and regulators.

Thailand scrambles to prevent humanitarian disaster from floods

Tue, 11 Oct 2011 12:57:03 -0400

Nearly 270 people have been killed in heavy monsoon rains, floods and mudslides since July that have battered 30 of Thailand’s 77 provinces, authorities said.About 3.4 million acres (1.38 million hectares) of farm land is under water — about 13 times the size of Hong Kong. More then 700,000 homes have been destroyed or damaged.In the hard-hit central province of Ayutthaya, 198 factories in a big industrial estate, including an assembly plant of Honda Motor Co Ltd, closed after flood waters breached a wall of sandbags at the weekend.”There will certainly be some impact on production due to the flooding in Ayutthaya,” Ammar Master, a senior market analyst at the Asian unit of J.D. Power and Associates, a California-based industry research firm.”While automakers will have components in stock, we expect a slowdown in production in the immediate term,” he said. “Measures taken are likely to be similar to those implemented in the immediate aftermath of the (March earthquake) disaster in Japan.”Industry Minister Wannarat Channukul estimated the initial cost of damage had reached more than 20 billion baht ($645 million)in Ayutthaya province alone.”This is just a rough estimate. We still can’t get to all parts of the area due to heavy flooding,” he said, adding that he would travel with Prime Minister Yingluck Shinawatra to Ayutthaya later on Monday.THOUSANDS PACKED INTO EVACUATION CENTRESBangkok, much of which is only two meters (78 inches) above sea level, has seen only minor flooding but officials are preparing for worse this week and considering evacuation plans for some sections of the city of about 12 million people.The Chao Phraya river running through the capital, already high because of water coming from overflowing dams in the north, could be swollen from around October 13 by further heavy rain plus high sea tides affecting its estuary.First Army Region Commander Lieutenant General Udomdej Sritabutr said three evacuation centers had been set up to support 7,000 evacuees in Ayutthaya province. At least 2,000 rescue workers have been sent to the area with nearly 1,000 boats and 155 trucks.Ayutthaya provincial hall has been turned into a makeshift evacuation center, packed with thousands in tents.Economists are cutting forecasts for economic growth this year because of the floods but say reconstruction work will push up demand eventually, especially early next year.Nearly 200 factories, including one run by Japanese car maker Honda, closed in Ayutthaya because of flooding. The Rojana estate in Ayutthaya, run by Rojana Industrial Park Pcl, was flooded after a wall of sandbags collapsed.A Honda spokeswoman said it had moved about 3,000 assembled cars from the estate to other areas. Hana Microelectronics Pcl has also had to close its plant in Ayutthaya.The commerce ministry said on Friday it had slashed its forecast for the main rice crop, which farmers are just starting to bring in, to 21 million tonnes from 25 million because of the flooding.Thailand is the world’s biggest rice exporter. The crop damage will add to the pressure on export prices, already being forced up by the high buying price set under a government intervention scheme aimed at helping poor farmers.Other Southeast Asian countries have suffered serious flooding in recent weeks because of heavy monsoon rains combined with tropical storms.The death toll from two strong typhoons that cut across the north of the Philippines’ main island and left behind widespread flooding had risen to 101 as of Sunday, the national disaster agency said.

Thailand scrambles to prevent humanitarian disaster from floods

Tue, 11 Oct 2011 12:56:55 -0400