Oil Exporters and Emerging Nations Catch Global Property Contagion

RICS Global Commercial Property Survey Q4 2008

Collapsing oil prices have pulled oil rich countries into the global property malaise with capital values falling in emerging nations for the first time in the survey’s history, says RICS Global Property Survey today (4 March 2009).

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The previously strong performing UAE (United Arab Emirates) saw capital values plummet from a positive balance of 65 percent to a negative balance of 83 percent. The outlook for future performance has in consequence turned very gloomy.

In the UAE, 85 percent more Chartered Surveyors expect capital values to fall compared to a positive balance of 45 percent in the previous quarter.

In Dubai, 96 percent more Chartered Surveyors expect capital values to fall even further over the next three months, a drop from a positive balance of 22 percent in the previous quarter.

In Russia, worries over macro stability has seen investment sentiment fall, sending capital values lower. Eastern Europe has also seen an acceleration in price declines with Hungary, Poland, Ukraine and Turkey reporting price falls at almost double the pace of the preceding quarter.

Commercial property in China has until recently remained relatively firm in the face of the global economic downturn.

Most of the Chinese indicators have previously remained in positive territory, with both supply and demand holding up and expectations generally upbeat.

However, the number of surveyors reporting a fall than a rise in capital values hit its worst level in the survey’s history.

72 percent more Chartered Surveyors reported a fall than a rise in capital values compared to a positive 18 percent in the previous quarter with surveyor sentiment for future rises also turning negative for the first time.

Rents fell across more than 90% of the countries surveyed with the greatest downward pressure occurring across parts of Asia. Taiwan, Hong Kong, Singapore and India were ranked in the bottom five for rental performance as the collapse in world trade has smashed export earnings and business confidence.

RICS senior economist, Oliver Gilmartin said:

“The withdrawal of capital from higher risk markets and collapsing oil prices has hit confidence towards the outlook for activity in property markets such as oil rich Russia, UAE and Ukraine.

“With yields in developed markets having already seen a significant re-pricing, concerns are shifting to financial stability in many emerging economies where a similar process is now underway.

“This is no more evident than in Eastern Europe, where fears over a systemic banking crisis have raised alarm in recent days.

"With growth forecasts in emerging markets significantly scaled down, yields may revert back towards historic norms amid a backdrop of falling rents.

"This would see the emerging market correction gain pace during 2009.”

Source: http://www.stackyard.com/

India copper futures extend gains on LME stock dip

MUMBAI, March 4 (Reuters) - India copper futures extended gains for a fourth day on Wednesday helped by a fall in inventory on the London Metal Exchange (LME), but a firm rupee kept the upside limited, analysts said.

China's plans to boost spending also aided sentiments, they added. See [ID:nBJC000263]

The benchmark April contract MCCJ9 was 1.31 percent higher at 185.75 rupees per kg at 4:00 p.m., after falling to a low of 183.8 rupees earlier.

"We expect to find initial resistance towards 187.50 followed by 190 levels, on (an) intra-day basis (it) looks likely to test any of this levels," said Paras Sejpal, an analyst with Transmarket Group.

"A major breakout took place yesterday at 182 and its not too late to enter the market," said Amrut Deshmukh, a senior technical analyst with Way 2 Wealth Securities in Mumbai.

"Buying is recommended on a dip to 184 if any, with a target of 190-195 and with a stop loss of 180," said Deshmukh, adding "we don't see any immediate pullback in copper."

Copper stocks fell by 4,850 tonnes to 526,025 tonnes on Wednesday on LME.

A firm rupee makes the dollar quoted asset cheaper. The Indian rupee was stronger in afternoon trade on Wednesday tracking gains in other Asian currencies versus the dollar, while a rise in the domestic stock market also helped.

Analysts said traders would be awaiting U.S. ISM non-manufacturing index and weekly mortgage market index to gauge market direction of the base metals complex.

At 4:01 p.m., March zinc MZIH9 was 2.14 percent higher at 59.70 rupees per kg, while March lead MLDH9 was 2.58 percent higher at 57.70 rupees per kg.

Source: http://in.reuters.com/

Cadbury Announces Chocolate Will Become Fairtrade Certified™

LONDON - (Business Wire) Cadbury plc, a leading global confectionery company, today announced that its Cadbury Dairy Milk® will receive Fairtrade certification with the FAIRTRADE Mark appearing on UK and Irish Cadbury Dairy Milk products by the end of summer 2009. This significant announcement on Cadbury Dairy Milk will result in the tripling of sales of cocoa under Fairtrade terms for cocoa farmers in Ghana.

Working with the UK-based Fairtrade Foundation, Cadbury Dairy Milk in the UK and Ireland will be the first to receive the certification, although the company will pursue options for a phased roll-out of the certification process across other Cadbury Dairy Milk varieties and other Cadbury businesses across the world.

Cadbury Chief Executive, Todd Stitzer, says, “This is an historic moment for our company. I am proud that the nation’s favourite chocolate bar will display the FAIRTRADE Mark. I was in Ghana last month and saw how vital it is that businesses support their partners and the communities they live in. We believe that by joining forces with the Fairtrade Foundation, we can further improve living standards and conditions for farmers and farming communities, and create a sustainable supply of high quality cocoa for Cadbury.”

“Cadbury’s commitment is breakthrough news for the farmers in Ghana who are very excited that they will be able to sell more of their cocoa as Fairtrade, bringing greater benefits to their communities,” says Harriet Lamb, Chief Executive of the UK Fairtrade Foundation. “We’re delighted to have the opportunity to certify Cadbury Dairy Milk, enabling all those who buy it to make a real difference for cocoa farmers with every purchase. This certainly sets a new standard for the mainstream chocolate industry.”

As a long-term supporter of sustainable cocoa farming, the move coincides with the 100th anniversary of Cadbury’s first full crop from Ghana and marks the first anniversary of the Cadbury Cocoa Partnership. Through this initiative, Cadbury is investing roughly $64 million USD over the next 10 years to help secure the economic, social and environmental sustainability of a million cocoa farmers and their communities in Ghana, India, Indonesia and the Caribbean.

Throughout the world, Cadbury has a heritage of ethical sourcing standards and the development of sustainable agriculture programs. Cadbury works with more than 40,000 suppliers around the world who are expected to adhere to the company’s Ethical Sourcing Standards. The Green & Black’s Maya Gold bar owned by Cadbury is already Fairtrade Certified.

In addition to sustainable sourcing efforts, Cadbury is focused on reducing its environmental impact. Through the Purple Goes Green initiative announced in July 2007, the company set targets to reduce carbon, water and packaging. By 2020, the company intends to make a 50% reduction in ‘absolute’ carbon emissions with a 10% reduction in packaging by 2010. The company has also introduced several new packaging innovations, including a new display case for products such as Trident Xtra Care, using 50% less cardboard.

Cadbury is also committed to brand values and community investment to support social welfare. In December 2008, Cadbury’s Trident brand, the number one gum brand in the world, announced a three-year, $1.5 million grant to Smiles Across America (SAA), the signature program of Oral Health America, to provide dental services and education to children in underserved communities nationwide.

For more information about all of Cadbury’s corporate responsibility commitments, please visit http://www.dearcadbury.com/.

Source: http://www.earthtimes.org/

China joins India in opposing protectionism

NEW DELHI: China on Wednesday joined India in opposing protectionism, saying it is detrimental to the "recovery and growth " of global economy
which is going through a very difficult phase.

"China is firmly opposing trade protectionism because such a policy is harmful to the recovery and growth of world economy," Chinese Ambassador Zhang Yan said here.

He said as a responsible member of the World Trade Organisation, China will continue to stand by the principle of free trade and oppose any form of trade protectionism.

The Chinese envoy's comments came a day after India said protectionist steps by developed nations would complicate the global financial crisis.

As the US moves towards eliminating tax benefits for American firms outsourcing jobs to foreign countries, Finance Minister Pranab Mukherjee had said developed countries should not resort to protectionism to overcome the financial crisis.

"Any sort of protectionism will complicate the problem instead of resolving it," Mukherjee said on Tuesday.

Favouring deeper cooperation between China and India in dealing with the financial downturn, the Chinese Ambassador said both countries must guard against protectionism.

"In the G-20 summit in Washington last November, our leaders committed themselves to not adopting measures of trade protectionism," he added.

Source: http://economictimes.indiatimes.com/

Nano goes to Europe, Tata hires Ferrari's designers

As I file this report, the Tata press conference at the Geneva Motor Show is yet to happen. But it is nevertheless fun to hang around the two Tata Nano Europa models on display. The name Europa is already taken by Lotus and it was indeed a bit perplexing to see the Nanos wearing the title.

Journalists from various nationalities poked, pushed and pulled at the Nano Europa that was on static display. “I have no option but to lock the car and keep it locked till the press conference,” said a rather harassed Tata employee. “Most of the journalists come with the notion that the Nano is not well built — and they are surprised to see that it is actually a production-ready model,” the Tata executive continued.

The Tata Europa is a jazzed-up version of the Nano that we got to see at the Auto Expo in India last year, but there are some important changes. Power comes from a three-cylinder petrol engine as against the two-cylinder engine in the Indian Nano. Power steering is standard, too. The cars at the Geneva show pavilion featured 175/50 R 14 P6000 Pirelli tyres that immediately made the car look good and more proportionate overall. LED lighting may not reach the production line but it looked good in any case.

The car will also feature ABS, driver and passenger side airbags and an electronic stability package when it’s launched in Europe in 2011. The interior of the car (only right-hand drive cars at the show) is done in such a way that most components are the same for the left-hand drive application. The car, according to an executive present at the show, features a three-cylinder engine so that it can keep pace with expressway speeds.

Tata also stunned many with its sedan concept, designed by none other than Pininfarina — the famed designers of Ferrari cars. The Tata Prima concept looks gorgeous from all angles and can give birth to a sedan that can rival the likes of the Honda City and the Fiat Linea in India. Tata Motors also showcased the Indica Vista EV, an electric vehicle based on the Vista that was launched in India last year. Tata hopes that the Vista EV, powered by lithium-ion batteries, will have a range of 200 km.

The vehicle has been developed in collaboration with Miljo Grenland/Innovasjon, Norway. Tata Motors’ UK subsidiary, Tata Motors European Technical Centre, has a 70 per cent stake in Miljo. The EV is undergoing evaluation in Europe.

Source: http://businessstandard.com/