One of the leaders in the mining sector – Rio Tinto, delighted investors with news that the planned doubling of the dividend for shareholders and the redemption value of 5 billions USD. After melting of the mountain of debt amounting to $ 40 billion company believes that it is well placed to take advantage of every opportunity that arises. It was further expressed readiness to reward shareholders for their patience during the crisis.
“I was pleasantly surprised by the news of redemption. It really was at least expected things that the company could announce. The news is good, “said Brandon James for the media, portfolio manager at Perennial Growth.
Rio Tinto, and most such companies have huge cash balances because of record copper prices, jump in the price of iron ore by 50 per cent and coal by nearly 40 per cent last year. The Rio Tinto’s plans are to be distributed dividends of 1.08 dollars per share, after last year’s shareholders received a 45 cents a share. Expectations of analysts was for dividend payments of no more than a dollar a share.
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The Taiwan’s Hon Hai, works on iPhone of Apple, once again accused of poor working conditions in factories in China in its two reports showing that the situation has not changed despite promises of the company after a series of suicide earlier this year, forward Reuters. One of the reports based on interviews with more than 1700 workers, Hon Hai criticized for long hours, “militaristic” working culture and mass recruitment of students from low-vocational colleges and trainees in production lines. By Hon Hai and its Hong Kong subsidiary Foxconn, which manufactures the iPhone and iPad, and products of Dell, Hewlett-Packard and others are rejected “unsubstantiated allegations” reports. The companies said they pay well and treat their employees. Hon Hai and Foxconn fell within the scope of public attention after 13 suicides in their factories in China, which were attributed to the difficult working conditions and suspicious corporate culture. In recent years, in fact, many international companies, including Honda Motor, recruit employees from technical and vocational schools in China, paying them lower wages and save on benefits. Observers say these employees often sign contracts in which no provisions on work safety and insurance in the workplace. After the suicide of Hon Hai pledged to improve the working conditions of its approximately 937 thousand employees in China, increase their salaries, reduce overtime and build new factories in mainland China to allow migrant workers to be closer to home.
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The Brazilian state oil company Petrobras plans to sell new shares worth up to 64.5 billion dollars, which will be one of the largest offerings in the history of capital markets, Reuters reported. Goal is to raise funds for its investment plan for the study of oil reserves. The company will offer preferential 1.59 billion new shares and 2.17 billion new ordinary shares. Based on the closing price of the shares on Thursday, the company will raise 39.2 billion dollars of common shares and another 25.4 billion dollars of preferential. Petrobras plans to determine share price on September 23rd. The investment plan for the company’s demand for oil at sea is worth 224 billion dollars is five years, is expected to become one of Brazil’s biggest exporters of oil. The goal is to raise funds for its investment plan for the study of oil reserves. Among the main objectives of the business managers of the company is undoubtedly acquiring deposits and deposits in the North Atlantic. There BP lost their positions, and for Petrobras is a chance that the geographical expansion.
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The major airlines have made a profit of 3.9 billion dollars in the second quarter of 2010 show to the International Air Transport Association IATA. This indicates that the sector is in much better financial position compared to same period last year. Then the 47 largest airlines, the results of which are monitored by International Air Transport Association IATA, registered a loss of 881 million dollars. Main tribute to the strong performance had stable fuel prices and the gradual recovery of demand in recent months. With the strong performance are North America and Asia-Pacific region, the results of European airlines have been supported by sales of assets for 1.3 billion dollars. The profits of the airline companies, increased after the summer season in Europe, Asia and North America, which caused serious profits for the airlines. The companies removed the losses after the Iceland vulcano and realized high increase of the profits, which is also good sign for economy recovery. For the same period last year 47 leading airline suffered a loss of 881 million dollars.
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Nestle, the biggest company by market capitalization in Europe, will receive 28.1 billion dollars by Novartis in the second half of the year from the sale of its majority stake in Alcon – manufacturer of cleaning products for contact lenses. Thus, Nestle will have more cash than Google, which has had its accounts at the end of March, 26.5 billion dollars. The funds will allow the Swiss company to buy the cash almost every public company in the sector. The only public companies for food and drinks with a market capitalization of more than 28.1 billion dollars are Coca-Cola, PepsiCo, Unilever, Kraft and Groupe Danone SA. Nestle will invest the proceeds in his business or make acquisitions, said last week Jim Singh, chief financial officer of the company. Investors want the company to undertake expansion of emerging markets to catch up with Unilever, which realized about half of its sales in developing countries. “They’re definitely behind in these markets,” said Wendy Treviso, fund manager at Thornburg Investment Management, whose investment in the company amounted to 700 million dollars. Nestle Forecasts indicate that over the next 10 years about 1 billion users in emerging markets will be able to afford her products. Nestle gets about a third of their revenue from these markets, Chief Executive Paul Balk aims to increase this share to 45% within a decade.
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The motor company Ford Motor Co plans to invest 450 million dollars in building a production base in Thailand, Reuters reported. The main part of the production of the new plant will be exported, which is part of the company’s expansion in Asia-Pacific region. The factory in the eastern province of Rayong will produce Ford Focus cars from 2012, but will set a future opportunity to diversify production, reported by the company. “This investment underlines our long-term commitment to Thailand and its role as a global manufacturing and export center for Ford”, commented Joe Hinrih, president of the company’s Asia-Pacific, and Africa. The factory with an area 750 thousand square meters will have an initial capacity of 150 thousand units per year and 85% of production will be destined for markets outside Thailand. Ford plans to buy locally produced components totaling up to 800 million dollars a year and the plant has the potential to provide up to 11 thousand new jobs, the company indicated.
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Venezuela will nationalize the oil platforms owned by U.S. company Helmerich and Payne, said. President Hugo Chavez has become the country’s energy sector nationalization of a substantial part of his “revolution”. Acquire state assets in telecommunications, power distribution, production of steel and banking industries. 11 platforms do not work for months because of a dispute concerning outstanding payments amounting to 49 million dollars from the state company PDVSA. Oil Minister Rafael Ramirez of Venezuela said on Wednesday that the platforms are nationalize to be returned to production. He stated that companies which refuse to launch its service platforms involved in a conspiracy to weaken the government of Chavez. “There is a group of owners of the platforms, which declined to discuss fees and services to PDVSA and preferred to keep the equipment in storage for a year. This is the case with the U.S. multinational company Helmerich and Payne “, said Ramirez told reporters. In September the country will hold elections for a legislative body, and Chavez usually take radical steps in the campaign, said Thursday.
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The government in Athens is expected to approve a broad privatization program, which will include a massive sale of state assets, said Greek newspaper Vima. Some are subject to privatization Organization estimates the results of football matches and betting OTE telecom, the national electricity company Dei, the gas company DEPA Agrarian Bank and the Athens airport “Eleftherios Venizelos. Dramatic decisions expected to be deep in debt to Greek Railways Company DCE, according to Greek newspaper. In this regard, “Vima said that representatives of investment houses, arms dealers, brokers and entrepreneurs are in Athens and true” vultures waiting for government tenders. Han Chinese, Arabs, Libyans, Quatars, Lebanese and other officials inspected the business market to intervene. The Germans also tried to touch their plans and seek to buy the remaining shares in OTE telecom to extend the contract for Athens airport, to strengthen the impact of tour operator TUI Germany, and last but not least – to buy Greek EAR aviation industry to secure access to future supplies of European fighters “Euro-fighters” wrote the Greek newspaper. According to publications in local newspapers, the Greek government expected from privatization this year to enter the treasury at least 2.5 billion.
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Gazprom and the Turkish energy company Botas, have agreed on a new formula for calculating the price of Russian gas to Turkey under which the blue fuel prices for the country will be reduced by at least 10%. It reported the Turkish newspaper Sabah, adding that the memorandum is expected to be signed tomorrow, during a visit to Turkey of Russian President Dmitry Medvedev. Formal confirmation from the Russian side of that information will now writes RIA Novosti. Currently 62% of the supply of blue fuel to come from Turkey, Russia is the largest foreign trade partner of Turkey. In this context, Russia’s president said, quoted by Turkish newspaper that ambition in the next five years the trade turnover between the two countries to increase 3-5 times, ie Its annual volume is likely to reach $ 100 billion. At present Bulgaria in the face of Bulgargaz also negotiate a new long-term contract with Gazprom for gas deliveries by early next year because this period expires.
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The U.S. government wants to impose a record fine of Toyota’s big because it “for several months” is covered up problems with the pedal to throttle some of its models, ignoring the risk for drivers, police said. Expected to be announced today, the decision imposing the penalty in the amount of 16.375 million dollars. Japanese have a period of two weeks to decide whether it intends to pay the fine. If you refuse and fail to reach agreement with U.S. regulators, the company provides the procedure to be indicted. If the fine is confirmed, it will be the largest penalty attributed to the U.S. carmaker. The investigation against Toyota started on February 16, the objective was to determine whether the company is late with the announcement of the observed problems in some of its cars. The rules in this area provide if the manufacturer finds a problem, to notify him within five days of the establishment of the defect. According to investigators the Japanese group was “over the issue for months and did not take the necessary measures to protect millions of drivers and their families,” said Transport Minister Ray American Lahuud.
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