Daiwa posts Q1 loss on underwriting slump

July 28, 2010 By Leave a Comment

July 27 (Reuters) – Daiwa Securities Group (8601.T), Japan’s second-biggest brokerage, posted a second consecutive quarterly loss, hit by a drop in fees to manage share and bond offerings.

Daiwa, which competes with Nomura Holdings Inc (8604.T), posted a 1.19 billion yen ($13.7 million) net loss in April-June, compared with a 2.8 billion yen loss in the previous quarter and a 17.9 billion yen profit in the same period a year earlier.

The result was roughly in line with market expectations. The average of three analysts surveyed by Thomson Reuters I/B/E/S had estimated a loss of 410 million yen.

Daiwa’s earnings mirrored those of bigger U.S. rivals, including Goldman Sachs (GS.N) and JPMorgan Chase & Co (JPM.N), which also suffered from lower trading revenue and investment banking fees in the latest quarter.

Japanese companies sold $5.2 billion worth of shares in the quarter, less than half the $13.8 billion in the same period a year earlier, according to Thomson Reuters data, cutting into underwriting fees across the investment banking industry.

Prior to the announcement, shares of Daiwa rose 0.3 percent to 375 yen, in line with the securities sector subindex .ISECU.T, which gained 0.5 percent. (Reporting by Junko Fujita; Editing by Lincoln Feast)

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WSJ: Nokia searching for new CEO

July 21, 2010 By Leave a Comment

Struggling to keep up with newer and more inventive rivals, number one phone maker Nokia is looking for a new CEO, according to a report in the Wall Street Journal on Monday.

While still the biggest phone maker in the world, Nokia has been losing market share in the growing smartphone segment. A March report from Canalys gave the company a 39 percent market share in the smartphone sector, down from 41 percent a year earlier in the face of competition from companies like Apple and Google. As a result, some analysts have been suggesting that a leadership shakeup might help reverse market share declines and stagnating revenue at the Finnish giant.

In June, Nokia warned that its second quarter earnings report, due out Thursday, would be lower than expected. It blamed competition at the high end of the market, a shift in product mix toward lower margin products and the depreciation of the euro.

Olli-Pekka Kallusvuo, president and CEO, has been with Nokia since 1980, when he joined as corporate counsel, according to his biography on the company web site. In 2006 he took over as CEO, replacing Jorma Ollila[cq]. He had a tough act to follow. Ollila was so beloved, that some people called for him to run for president of Finland.

Nokia declined to comment on the report. The Wall Street Journal cited unnamed people who said the company had launched a search for a new CEO.

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UPDATE 1-MMK Q2 crude steel output up 9 pct q/q

July 20, 2010 By Leave a Comment

MOSCOW, July 19 (Reuters) – Russian steelmaker Magnitogorsk Iron & Steel Works (MAGN.MM) (MAGNq.L) said on Monday it increased second-quarter crude steel output by 9 percent compared with the preceding three-month period.

Rivals Evraz (HK1q.L) and NLMK (NLMK.MM) last week also said they increased output, in the hope that the trend of weaker prices in the last two months will turn around in the autumn, [ID:nLDE66E0P1] while MMK forecast 2011 steel output to rise 20 percent to 12 million tonnes. [ID:nWLA8353]

MMK said in a statement its production of crude steel totalled 2.985 million tonnes versus 2.732 million tonnes in the first quarter. It did not provide year-ago numbers.

The company, Russia’s third-largest steel producer by volume output, earlier forecast flat second-quarter production before it was expected to fall slightly during the quieter summer months of June and July. [ID:nLDE65A07O]

MMK also said finished products output grew 7 percent quarter-on-quarter to 2.623 million tonnes from 2.453 million tonnes, and its domestic and export prices kept on increasing in the April through to June period.

The company, which is controlled by Russia’s ninth richest man Viktor Rashnikov, said average price of steel products increased by 17 percent.

Its Moscow-listed stock opened 0.54 percent higher on Monday, slightly outperforming the broader market index which edged up 0.17 percent. (Reporting by Maria Kiselyova; editing by Keiron Henderson)

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DEALTALK-Australian buyout firms tempted by secondary deals

July 15, 2010 By Leave a Comment

MELBOURNE, July 14 (Reuters) – Australia’s private equity firms are more likely to offload their companies in the months ahead to other deal-hungry buyout firms than brave fragile equity markets with a float.

So-called secondary deals between private equity firms are relatively rare in Australia, partly because of the smaller scale of the industry, compared with the U.S. and UK markets.

But pressure to deploy funds raised during the boom years and a re-opening of credit spigots mean that buyout firms are taking a closer look at the assets of their rivals, often with a view to growing a company beyond its initial phase of development.

Trade sales or initial public offerings have traditionally been the preferred exit strategies in Australia, but two secondary deals have been put through this month.

These were CHAMP Private Equity’s $570 million sale of university programme provider Study Group to U.S. buyout firm Providence Equity, and CHAMP’s purchase of temporary fencing group ATF from Quadrant, which had been headed for a stock market listing. [ID:nSGE660087]

Volatile equity markets and “a disconnect between buyer and seller expectations” have closed the door for IPOs and made trade sales harder to come by, according to the Australian Private Equity and Venture Capital Association (AVCAL).

“We see the potential for increased activity in the secondary sponsor-to-sponsor market, as PE firms look to exit from the large volume of deals made during fiscal 2006 and 2007,” said AVCAL Chief Executive Katherine Woodthorpe. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

For a graphic on Australian private equity deals, click on:

here ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

SLAMMED SHUT

The door for IPOs was unexpectedly slammed shut this month when the float of Bilfinger Berger’s (GBFG.DE) Australian unit Valemus was pulled. Investors had been keenly awaiting the pricing range for an indication of demand and were taken aback by the decision to shelve the float. [ID:nSGE6640HO]

Adding to the pressure, some of the world’s largest buyout firms such as the Carlyle Group [CYL.UL], KKR (KKR.AS) and TPG [TPG.UL] are sitting on billions of dollars of uninvested funds raised globally during the boom years.

While some question what a buyout firm would see in an asset of one of its rivals, since the business has already undergone a turnaround or expansion, industry sources say that as a company grows, it may outgrow its original sponsors and a new owner could add more value.

For the buyer, a privately owned business will also come with a set of bankers attached to it that are familiar with the firm.

“So for a PE manager in the current environment, that can be attractive as well — you don’t have to introduce a new set of bankers,” an industry source said.

If a company still needs a fresh injection of capital, it may be a better strategy to remain in private hands than go public.

Kevin Skelton, head of corporate finance and advisory for Merrill Lynch in Australia, said the terms that banks are prepared to lend on for private equity deals have improved this year and large global buyout firms were eyeing Australia.

“Deals that didn’t stack up a year ago now stack up because you can put more leverage into the transaction,” he said.

Assets that could draw the interest of other PE firms are generally at the smaller end of the market, but some of the larger deals in sectors with attractive returns could include MYOB, owned by Archer Capital, or Healthcare Australia, owned by CHAMP.

Uncertainty over the tax regime has delayed exits this year, as the Australian Taxation Office threatened to tax private equity profits at a higher rate. The issue has been shelved by a government gearing up for an election.

Over the medium term, several private equity floats that have been put on hold could be revived if the tax issue is resolved and markets lift.

Among companies with better brand recognition that are considered the best IPO candidates are cinema chain Hoyts, bookstore chain and owner of Borders, REDGroup, and retailer Rebel Sports. Australian IPOs often attract a larger retail investor base than overseas.

“If we see more stability in the listed markets and more stability in the credit markets then we will see more exits happening, including secondary deals,” said Jon Schahinger, managing director of listed private equity investor ING Private Equity Access. (Additional reporting by Michael Smith; Editing by Muralikumar Anantharaman)

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Afghan insurgent group denies selling out Taliban

July 11, 2010 By Leave a Comment

(Reuters) – An Afghan insurgent group rejected on Saturday reports that it was providing intelligence on the Taliban to the government and foreign troops.

General Murad Ali Murad, commander of Afghan troops in the north, told Reuters that Hezb-i-Islami fighters had tipped-off government and U.S. forces, revealing locations of key Taliban figures there.

“This is part of the propaganda war by the government, foreign troops and those trying to create differences among us,” said Haroon Zarghoun, a spokesman for Hezb, which is led by former prime minister Gulbuddin Hekmatyar.

“Anyone doing such work is an apostate and is certainly not a Hezb member,” Zarghoun told Reuters by phone from an undisclosed location. Hekmatyar’s Hezb is one of three major insurgent groups fighting government and foreign forces in Afghanistan — mainly in the east and pockets of the north.

STRONGHOLDS

The other two, both seen by NATO as bigger threats, are the Taliban, with strongholds in the south, and the Haqqani network, based mainly in the southeast.

Ousted in a U.S.-led invasion in 2001 the Taliban have re-grouped in their traditional heartlands, but are also now spreading to parts of the north.

However the group has lost a number of commanders in the north in operations by Afghan and foreign troops in recent months which senior Afghan officials said were the result of Hezb fighters selling them out.

While Hezb shares some of the aims of the Taliban, it has led a largely separate insurgency. Earlier this year, Taliban fighters pushed into Hezb-i-Islami strongholds in the north, leading to clashes between the two groups.

Both groups later played down the clashes, but Murad said Hekmatyar’s men — who came off worse in the fighting — were now seeking revenge and were passing on information about their Taliban rivals.

Several Taliban commanders, including the deputy shadow governor of Kunduz and a shadow district governor, have been killed in the last three months, NATO has said, some by air strikes as they drove through a remote desert and others as they met in a field.

Under NATO rules of engagement, such air strikes would require troops to follow strict procedures for positively identifying the insurgents. This in turn would be heavily dependent on reliable intelligence and could suggest such information came from within the insurgency.

Increased localized squabbling could signal divisions in the insurgency after Hezb-i-Islami distanced itself from the Taliban earlier this year when it sent a delegation to Kabul to meet President Hamid Karzai.

While the talks ended without breakthrough, Hezb said it would consider negotiating with the government as long as foreign forces withdrew within a specified timeframe.

The Taliban have always insisted no talks can take place until all foreign troops leave.

(Reporting by Sayed Salahuddin; Editing by David Fox)

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Afghan insurgent group denies selling out Taliban

July 11, 2010 By Leave a Comment

(Reuters) – An Afghan insurgent group rejected on Saturday reports that it was providing intelligence on the Taliban to the government and foreign troops.

General Murad Ali Murad, commander of Afghan troops in the north, told Reuters that Hezb-i-Islami fighters had tipped-off government and U.S. forces, revealing locations of key Taliban figures there.

“This is part of the propaganda war by the government, foreign troops and those trying to create differences among us,” said Haroon Zarghoun, a spokesman for Hezb, which is led by former prime minister Gulbuddin Hekmatyar.

“Anyone doing such work is an apostate and is certainly not a Hezb member,” Zarghoun told Reuters by phone from an undisclosed location. Hekmatyar’s Hezb is one of three major insurgent groups fighting government and foreign forces in Afghanistan — mainly in the east and pockets of the north.

STRONGHOLDS

The other two, both seen by NATO as bigger threats, are the Taliban, with strongholds in the south, and the Haqqani network, based mainly in the southeast.

Ousted in a U.S.-led invasion in 2001 the Taliban have re-grouped in their traditional heartlands, but are also now spreading to parts of the north.

However the group has lost a number of commanders in the north in operations by Afghan and foreign troops in recent months which senior Afghan officials said were the result of Hezb fighters selling them out.

While Hezb shares some of the aims of the Taliban, it has led a largely separate insurgency. Earlier this year, Taliban fighters pushed into Hezb-i-Islami strongholds in the north, leading to clashes between the two groups.

Both groups later played down the clashes, but Murad said Hekmatyar’s men — who came off worse in the fighting — were now seeking revenge and were passing on information about their Taliban rivals.

Several Taliban commanders, including the deputy shadow governor of Kunduz and a shadow district governor, have been killed in the last three months, NATO has said, some by air strikes as they drove through a remote desert and others as they met in a field.

Under NATO rules of engagement, such air strikes would require troops to follow strict procedures for positively identifying the insurgents. This in turn would be heavily dependent on reliable intelligence and could suggest such information came from within the insurgency.

Increased localized squabbling could signal divisions in the insurgency after Hezb-i-Islami distanced itself from the Taliban earlier this year when it sent a delegation to Kabul to meet President Hamid Karzai.

While the talks ended without breakthrough, Hezb said it would consider negotiating with the government as long as foreign forces withdrew within a specified timeframe.

The Taliban have always insisted no talks can take place until all foreign troops leave.

(Reporting by Sayed Salahuddin; Editing by David Fox)

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Afghan insurgent group denies selling out TalibanAfghan insurgent group denies selling out Taliban

July 11, 2010 By Leave a Comment

July 10 (Reuters) – An Afghan insurgent group rejected on Saturday reports that it was providing intelligence on the Taliban to the government and foreign troops.

General Murad Ali Murad, commander of Afghan troops in the north, told Reuters that Hezb-i-Islami fighters had tipped-off government and U.S. forces, revealing locations of key Taliban figures there. [ID:nSGE66300D]

“This is part of the propaganda war by the government, foreign troops and those trying to create differences among us,” said Haroon Zarghoun, a spokesman for Hezb, which is led by former prime minister Gulbuddin Hekmatyar.

“Anyone doing such work is an apostate and is certainly not a Hezb member,” Zarghoun told Reuters by phone from an undisclosed location. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

For more on Afghanistan click [ID:nAFPAK]

or see link.reuters.com/syx62d

Afghan blog: blogs.reuters.com/afghanistan/ ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Hekmatyar’s Hezb is one of three major insurgent groups fighting government and foreign forces in Afghanistan — mainly in the east and pockets of the north.

STRONGHOLDS

The other two, both seen by NATO as bigger threats, are the Taliban, with strongholds in the south, and the Haqqani network, based mainly in the southeast.

Ousted in a U.S.-led invasion in 2001 the Taliban have re-grouped in their traditional heartlands, but are also now spreading to parts of the north.

However the group has lost a number of commanders in the north in operations by Afghan and foreign troops in recent months which senior Afghan officials said were the result of Hezb fighters selling them out.

While Hezb shares some of the aims of the Taliban, it has led a largely separate insurgency. Earlier this year, Taliban fighters pushed into Hezb-i-Islami strongholds in the north, leading to clashes between the two groups.

Both groups later played down the clashes, but Murad said Hekmatyar’s men — who came off worse in the fighting — were now seeking revenge and were passing on information about their Taliban rivals.

Several Taliban commanders, including the deputy shadow governor of Kunduz and a shadow district governor, have been killed in the last three months, NATO has said, some by air strikes as they drove through a remote desert and others as they met in a field.

Under NATO rules of engagement, such air strikes would require troops to follow strict procedures for positively identifying the insurgents. This in turn would be heavily dependent on reliable intelligence and could suggest such information came from within the insurgency.

Increased localised squabbling could signal divisions in the insurgency after Hezb-i-Islami distanced itself from the Taliban earlier this year when it sent a delegation to Kabul to meet President Hamid Karzai.

While the talks ended without breakthrough, Hezb said it would consider negotiating with the government as long as foreign forces withdrew within a specified timeframe. [ID:nSGE62U06H]

The Taliban have always insisted no talks can take place until all foreign troops leave. (Reporting by Sayed Salahuddin; Editing by David Fox) (sayed.salahuddin@thomsonreuters.com; Kabul newsroom: +93 799 335 285)) (If you have a query or comment about this story, send an e-mail to news.feedback.asia@thomsonreuters.com)

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Maxis sees broadband revenue rising, higher payouts

July 10, 2010 By Leave a Comment

July 9 (Reuters) – Malaysia’s Maxis (MXSC.KL), which earns more than 90 percent of revenue from its mobile phone business, is keen to more than triple revenue from broadband services on wireless and fixed line in two to three years.

Sandip Das, chief executive of the country’s top mobile phone operator, said the mobile phone business would remain the “bread and butter” of the firm, but even within that it is keen to boost revenue from non-voice segment such as Internet access.

Maxis, which controls about 40 percent of the country’s mobile phone market, and smaller rivals Axiata (AXIA.KL) and Digi.com (DSOM.KL) dominate Malaysia’s mobile phone market.

Maxis is seeking to build its share in fixed-line broadband service by using Telekom Malaysia’s (TLMM.KL) high speed broadband network that aims to provide services to more than 700,000 households in Malaysia.

“When you look at Malaysia, where more than 50 percent of the population is under the age of 25, these are people who have grown on a diet of gadgets,” Das, who joined Maxis from Hutchison Essar Ltd in 2007, told Reuters in an interview.

“In the future, mobile broadband is going to struggle to cater to the data demand of these people.”

“We expect non-voice business for us to be in the region of a about 50 percent by 2012. We expect broadband business to start becoming double digit percentages towards 2012, 2013.”

Currently, non-voice business contributes about 36 percent of of revenue within the company’s mobile phone business.

Das said he hopes to give shareholders annual dividend payouts of more than 75 percent of net profit. “While we have promised what we promised at the IPO, I think we will probably do better than what we promised.”

(Editing by Anshuman Daga)

((saeed.azhar@thomsonreuters.com; +65 6403 5664; Reuters Messaging: saeed.azhar.reuters.com@reuters.net)

((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)) Keywords: MAXIS/

(C) Reuters 2010. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nSGE66801H

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E.ON could invest in EDF nuclear reactors – press

July 10, 2010 By Leave a Comment

July 9 (Reuters) – German utility E.ON (EONGn.DE) could take a partial stake in some of EDF’s (EDF.PA) nuclear reactors as part of a plan to extend the life of the plants, E.ON told a newspaper on Friday.

French parliamentarians last month passed a bill that will force former power monopoly EDF to sell a quarter of its nuclear output to rivals to foster greater competition in the electricity market.

The bill will now have to be examined by the upper house in an extraordinary parliamentary session in July or September, but a senator of the UMP ruling party has proposed instead that EDF invite shareholders into the country’s 58 nuclear reactors.

“E.ON would be very interested. But this objective must be clearly written in the law. Otherwise, the historical operator would have excessive leverage in negotiations,” said Luc Poyer, the head of E.ON France in an interview with daily Le Figaro.

“If 500 million euros are needed to extend the life of a reactor, a part of that investment could come from a player that has the technical and economic expertise. In exchange, it would get a share in the output,” he added.

Poyer also said France should further open its electricity market, which was liberalised in July 2007 in line with European Union demands, but EDF’s competitors are struggling to attract customers because of scarce access to baseload output. (Reporting by Michel Rose and Benjamin Mallet; Editing by Hans Peters)

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Taiwan’s HTC Q2 profit up about 33 pct y/y

July 7, 2010 By Leave a Comment

July 6 (Reuters) – Taiwan smartphone maker HTC Corp (2498.TW) reported an around 33 percent rise in second-quarter profit, it said on Tuesday.

HTC’s unaudited net profit in April-June was T$8.64 billion ($268 million), the company said in a statement, without giving further details.

In the same period a year earlier, it had reported an audited net profit of T$6.5 billion.

Sales reached T$23.86 billion in June.

HTC ranks behind bigger smartphone rivals Nokia Oyj (NOK1V.HE), Blackberry maker Research in Motion (RIM.TO), iPhone maker Apple Inc (AAPL.O) and Motorola Inc (MOT.N) in the global smartphone rankings, according to research firm IDC. (US$1=T$32.2) (Reporting by Roger Tung)

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Japan PM sticks to modest election goal after polls

June 28, 2010 By Leave a Comment

(Reuters) – Japan’s prime minister tried to quell suggestions on Saturday he could be the next in line of revolving door leaders, sticking to a modest target in a forthcoming election after polls showed his party may miss a majority.

World | Japan

Speculation simmers that rivals in Naoto Kan’s ruling Democratic Party of Japan (DPJ) could try to oust him if the party fares poorly in the July 11 upper house election. The party needs a majority in the chamber to forge ahead with policies to boost the economy and cut huge debt.

The DPJ, which swept to power for the first time last year, will run the government regardless of the outcome given its dominance in the lower house, but control of the upper house would enable it to avoid policy deadlock.

Kan, who took over this month as Japan’s fifth premier in three years, said he was standing by a goal to win 54 of 121 seats in the election. That would fall short of a majority but analysts say Kan is setting the bar low to avoid being ousted in a party leadership vote in September.

“Before I became the party leader, the DPJ was in a tough position,” he told reporters in Toronto, where he was making his debut at a meeting of G8 and G20 leaders.

“I want to focus on winning the current number of seats we have, then how we can exceed that.”

SHORT OF A MAJORITY

Media have reported that the DPJ could well fall short of an outright majority and may need to find new allies to control the chamber, clouding the outlook for policies.

A June 24-25 survey by the Asahi newspaper showed the DPJ could win about 54 of the 121 seats up for grabs in the 242-member upper house, in line with Kan’s target but short of the 60 it needs for an outright majority.

Support for the DPJ-led government has rebounded since Kan took over from the unpopular Yukio Hatoyama. But ratings slipped after Kan made fiscal reform the heart of his campaign and floated the idea of doubling the 5 percent sales tax.

While many voters agree an increase in the sales tax is inevitable to pay growing social security costs and fix tattered public finances, others say the government should first do more to cut wasteful spending.

Kan said priorities would be established for spending cuts and pledged to drum up support for bold tax reforms from DPJ members, some of whom are wary that the idea could hurt the party’s election chances.

“Of course we will consider ways to not put too much burden on people with low incomes,” Kan said. “My proposal is to initiate debate, so I think I can win (the party’s) understanding.”

(Editing by Ron Popeski)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

CORRECTED-Japan PM sticks to modest election goal after polls

June 28, 2010 By Leave a Comment

TORONTO, June 26 (Reuters) – Japan’s prime minister tried to quell suggestions on Saturday he could be the next in line of revolving door leaders, sticking to a modest target in a forthcoming election after polls showed his party may miss a majority.

Speculation simmers that rivals in Naoto Kan’s ruling Democratic Party of Japan (DPJ) could try to oust him if the party fares poorly in the July 11 upper house election. The party needs a majority in the chamber to forge ahead with policies to boost the economy and cut huge debt.

The DPJ, which swept to power for the first time last year, will run the government regardless of the outcome given its dominance in the lower house, but control of the upper house would enable it to avoid policy deadlock.

Kan, who took over this month as Japan’s fifth premier in three years, said he was standing by a goal to win 54 of 121 seats in the election. That would fall short of a majority but analysts say Kan is setting the bar low to avoid being ousted in a party leadership vote in September.

“Before I became the party leader, the DPJ was in a tough position,” he told reporters in Toronto, where he was making his debut at a meeting of G8 and G20 leaders.

“I want to focus on winning the current number of seats we have, then how we can exceed that.”

SHORT OF A MAJORITY

Media have reported that the DPJ could well fall short of an outright majority and may need to find new allies to control the chamber, clouding the outlook for policies.

A June 24-25 survey by the Asahi newspaper showed the DPJ could win about 54 of the 121 seats up for grabs in the 242-member upper house, in line with Kan’s target but short of the 60 it needs for an outright majority. [ID:nTOE65P006]

Support for the DPJ-led government has rebounded since Kan took over from the unpopular Yukio Hatoyama. But ratings slipped after Kan made fiscal reform the heart of his campaign and floated the idea of doubling the 5 percent sales tax.

While many voters agree an increase in the sales tax is inevitable to pay growing social security costs and fix tattered public finances, others say the government should first do more to cut wasteful spending.

Kan said priorities would be established for spending cuts and pledged to drum up support for bold tax reforms from DPJ members, some of whom are wary that the idea could hurt the party’s election chances.

“Of course we will consider ways to not put too much burden on people with low incomes,” Kan said. “My proposal is to initiate debate, so I think I can win (the party’s) understanding.” (Editing by Ron Popeski)

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iPhone 4 sets record sale pace despite gaffe

June 18, 2010 By Leave a Comment

(Reuters) – Sales of Apple Inc’s latest iPhone blew away expectations in its first day on the market despite shortages and an embarrassing online ordering glitch that thwarted many shoppers.

Technology | Hot Stocks

Apple shares rose nearly 3 percent on Wednesday after it announced sales of more than 600,000 iPhone 4s, a record for just a single day of pre-orders. That put the device on track to surpass sales of its previous iPhone models as well as its iPad tablet computer, and sounded a strong challenge to rivals like Nokia Corp, which warned of weaker-than-expected sales at its phones unit.

But Apple apologized on Wednesday for having to halt sales temporarily after the surprising volume of online interest overloaded order and approval systems and supplies ran out.

Apple’s website said Wednesday afternoon that products ordered then would be shipped by July 14, three weeks after the phone’s scheduled June 24 launch in stores and slower than the July 2 shipment promised earlier in the day. The site was still slow on Wednesday, making it unclear if orders were going through.

The phone’s exclusive U.S. carrier AT&T Inc said it had halted pre-orders and that sales would resume as soon as inventory becomes available.

The Apple faithful appeared unconcerned. Analysts say the new iPhone would likely surpass sales of the last iPhone 3GS model, about 1 million units of which moved in its first three days. Helping drive that stellar performance will be an influx of new users jumping on the smartphone boom, as well as a two-year replacement cycle for existing iPhone fans.

The first round of carrier contracts signed for the first 3G-based iPhone — launched in 2008 — are due to end soon, JPMorgan analyst Mark Moskowitz said in a research note.

“It’s easy to forget how early we are in the adoption of this device,” said BGC Partners analyst Colin Gillis, saying many had underestimated the size of the iPhone’s addressable market. “There’s only 50 million of them out there. 600,000 is still a drop in the bucket.”

One analyst said sales of the device could reach 10 million per quarter, once Apple can meet demand.

“At some point in the next three to four months they’ll catch up. That’s when they’ll start hitting the 10 million per quarter mark,” Hapoalim Securities analyst Kevin Hunt said.

“There is probably enough demand (to hit that number) in the third quarter but there’s probably not enough supply.”

Another analyst, Shaw Wu of Kaufman Bros, said his eight million estimate for the quarter is probably conservative.

Some other analysts have raised concerns that Apple supply shortages — which caused a delay in the international launch of the iPad, for instance — would drive impatient buyers to rivals.

Apple and AT&T have incurred several recent technical and public relations embarrassments, including a security breach on the iPad that exposed email addresses of public figures, and an investigation into a missing iPhone prototype.

AT&T also said it received complaints that potential iPhone 4 customers were seeing other customers’ data on its website. It did not comment on this in Wednesday’s statement.

Apple unveiled the slimmer, $199 iPhone 4 last week, kicking off its fastest-ever global product roll-out to try to stay a step ahead of rivals like Google Inc in a red-hot smartphone market.

The device boasts a higher-quality screen and longer battery life, video chat via Wi-Fi, and a gyroscope sensor for improved gaming.

VERIZON ON THE HORIZON?

Shares of Apple, still hovering near a lifetime high, closed up 2.9 percent at $267.25 on Nasdaq. AT&T slipped 0.08 percent to $25.52 on the New York Stock Exchange.

AT&T said orders of the iPhone 4 were 10 times higher in their first day than for the iPhone 3GS on its launch day last year.

It said it chalked up more than 13 million visits to its website on Tuesday, including customers checking to see if they were eligible to upgrade to a new phone. It said eligibility checks were three times its previous record for a single day.

Hudson Square Research analyst Todd Rethemeier said the sales numbers were good news for AT&T, especially because of widespread expectations that bigger rival Verizon Wireless, a venture of Verizon Communications Inc and Vodafone Group Plc, will soon be able to sell iPhones too.

“It means they’re locking up customers into new two-year contracts. Nobody knows when Verizon’s going to the iPhone, but there’s a lot of speculation this will happen.” he said. “Anything AT&T can do to lock up customers now is a good thing.”

Rodman & Renshaw analyst Ashok Kumar said the technical snafus were more of a black eye for AT&T than Apple, and reinforced his expectation for a Verizon iPhone late this year. He does not see the problems helping rivals who make phones powered by the Android software from Google.

“People who can’t get their phones today, they’re not going to go to Android. They’ll just come back tomorrow and try to buy the iPhone,” he said.

AT&T said the availability of its inventory would determine whether it could resume taking orders. Apple apologized to frustrated would-be buyers and asked them to “try again” online and in stores once the phone is in stock.

“We apologize to everyone who encountered difficulties, and hope that they will try again … once the iPhone 4 is in stock,” Apple said in a statement.

(Additional reporting by Alexei Oreskovic in San Francisco and Carolina Madrid in Los Angeles, Writing by Edwin Chan; Editing by Matthew Lewis, Gerald E. McCormick, Richard Chang, Gary Hill)

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Motor Racing-Audi win Le Mans 24 hours

June 14, 2010 By Leave a Comment

June 13 (Reuters) – Audi reclaimed the Le Mans 24 Hours crown with a clean sweep at the Circuit de la Sarthe on Sunday with Timo Bernhard at the wheel of the first Audi R15 on the chequered flag.

The non-works Peugeot Oreca was fourth after the three official cars of the French manufacturer, who ended their German rivals’ five-year reign last year, were forced to retire by mechanical failures. (Writing in Paris by Jean-Paul Couret; Editing by Alan Baldwin To query or comment on this story e-mail sportsfeedback@thomsonreuters.com)

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England TV viewers left in the dark as Gerrard nets

June 14, 2010 By Leave a Comment

(Reuters) – British broadcaster ITV apologized to viewers after thousands of England fans missed Steven Gerrard’s opening World Cup goal on Saturday when a commercial was accidentally aired at the crucial moment.

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Fans watching ITV’s high definition channel at home and in pubs across the country were left in the dark as a car advert was screened at the moment Gerrard put England ahead against main group rivals, the United States.

The error did not affect ITV’s standard service.

An ITV spokesman apologized for the “interruption” which left fans frustrated and angry.

“A transmission problem temporarily affected ITV1′s HD service during the England/U.S. match. ITV standard definition service continued uninterrupted.

“We apologize for the interruption in transmission,” the spokesman said.

One pub owner described scenes of pandemonium as fans realized what had happened.

“We couldn’t believe it — this advert popped up and then it goes back to the game and England are 1-0 up,” Andy Quinn-Williams, landlord of the Three Tunnes in Stockport, was quoted as saying in the Sunday Telegraph.

“There was pandemonium in the pub — it is outrageous. We all started calling friends and those watching it without HD were seeing the game without the advert.”

(Editing by Jon Bramley)

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Clash between Somalia police, soldiers kills 13

June 14, 2010 By Leave a Comment

MOGADISHU, June 13 (Reuters) – Fighting between Somali government troops and police has killed at least 13 people and injured 14 in Mogadishu after soldiers tried to rob civilians, police said on Sunday.

The clash occurred on Saturday in Hamarjajab district, in the south of the capital.

“The clashes came after some of the government troops started to rob a civilian car and the police were trying to stop it,” Abdullahi Mo`alim Kerow, a police officer, told Reuters.

The clash resulted in the deaths of nine soldiers and four civilians who were not involved the fighting but were caught in the crossfire.

“We have collected bodies of nine government troops … and three unidentified civilians. The injured have been taken to … hospital and the fighting has stopped,” Kerow said late on Saturday.

“This kind of clashes among the government troops is unfortunate and been has repeated so many times, claiming the lives of nearly 100 troops since January.”

Ten civilians were wounded and one of them later died, Ali Muse Abdi, the coordinator of ambulance services in Mogadishu, told Reuters.

Somalia has had no effective central government for 19 years and Western efforts to install one to steer the country back to stability have been hampered by an insurgency by al Qaeda-linked al Shabaab insurgents and another smaller group, Hizbul Islam.

The Transitional Federal Government controls only a few blocks of Mogadishu with the help of African Union peacekeepers.

Elsewhere, al Shabaab regained control the strategic central town of Baladwayne from Hizbul Islam.

While Hizbul Islam and al Shabaab have fought together against the government in Mogadishu, they are rivals in other parts of the country.

“Al Shabaab is in full of control of the town. Their fighters are everywhere. There was no confrontation at all. The Hizbul Islam in town have been disarmed,” Adam Mohamed, a resident of Baladwayne, told Reuters.

Fighting in Somalia has killed at least 21,000 people since the start of 2007 and driven another 1.5 million from their homes, triggering one of the world’s worst humanitarian emergencies. (Additional reporting by Abdi Sheikh, editing by George Obulutsa and Alison Williams)

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UPDATE 2-K+S’s 2nd potash mark-up adds to signs of recovery

June 12, 2010 By Leave a Comment

FRANKFURT, June 11 (Reuters) – German salt miner K+S (SDFG.DE) raised the prices for its main product potash for the second time since March, reassuring investors that fertiliser demand in its largest European market was gaining traction.

K+S, the world’s fourth-largest potash supplier, will charge 8 euros more, or 305 euros ($367.2) per tonne of the key crop nutrient, from June 15, it said on Friday.

“We continue to see good demand in Europe,” the company said, adding it also had to narrow the gap to higher world market prices of standard potash.

The weak euro has made it more expensive for European farmers to procure potash from outside Europe, where it is sold in dollars, now trading at around $400 (330 euros) a tonne.

“This is an encouraging signal after the price slump in 2009 and the bottoming-out earlier this year,” said Hamburger Sparkasse analyst Marco Guenther.

“The upward price trend underpins the good prospects for 2011.”

The shares extended gains and were up 3.2 percent at 39.25 euros at 1032 GMT, outperforming the 0.2 percent gain of the STOXX Europe 600 Chemicals .SX4PE.

K+S had lifted the potash price to 297 euros per tonne in March from 285 euros, the first mark-up since the global financial crisis caused a slump in fertiliser demand.

K+S’s Canadian rivals Potash Corp (POT.TO), Mosaic Co (MOS.N) and Agrium Inc (AGU.TO) are all in the midst of expanding their output from existing mines as global demand for the crop mineral recovers.

The industry is banking on pent-up demand from farmers who last year held back on potash use, speculating on a decline in fertiliser costs while suffering from low grain prices.

Resurgent fertiliser demand helped K+S post forecast-beating first-quarter results in May but its full-year sales volume outlook remained behind those of its main rivals. [ID:nLDE6492QC] (Editing by Mike Nesbit) ($1=.8307 euros)

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EU to decide on Comcast, NBCU deal by July 15

June 12, 2010 By Leave a Comment

June 11 (Reuters) – EU competition regulators set a July 15 deadline either to clear or prevent U.S. cable provider Comcast’s (CMCSA.O) proposed takeover of NBC Universal, the European Commission said on Friday. The Commission, competition watchdog of the 27-country European Union, may also challenge the deal by seeking concessions but doing so could mean extending the deadline by 35 working days.

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The Commission is expected to canvas views from consumers and rivals before deciding whether to clear the transaction.

The U.S. Justice Department and the Federal Communications Commission are reviewing Comcast’s plan to buy a controlling stake in General Electric’s (GE.N) NBC Universal in a $30 billion joint venture.

Consumer and public interest groups have expressed concerns about possible higher prices for consumers as a result of the deal. (Reporting by Foo Yun Chee, editing by Dale Hudson)

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EU to rule on BA, Iberia merger by July 15

June 12, 2010 By Leave a Comment

June 11 (Reuters) – EU competition regulators will decide by July 15 whether to clear or block a planned $8 billion merger between British Airways (BAY.L) and Spain’s Iberia (IBLA.MC), the European Commission said on Friday.

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The Commission could also ask the carriers, which notified European Union regulators of their merger plans the previous day, to provide concessions — such as giving up airport slots — to ease possible concerns that the deal may dent competition.

The airlines aim to complete the merger by December and hope it will enable them to compete better with rivals Lufthansa (LHAG.DE) and Air France (AIRF.PA) as well as low-cost carrier Ryanair (RYA.I). It will also clear the way for a tie-up with American Airlines (AMR.N). The Commission, competition watchdog of the 27-country EU, is expected to seek views from customers and rivals on the BA-Iberia merger. It can extend its review by 35 working days if it has concerns or if the two carriers offer concessions. (Reporting by Foo Yun Chee, editing by Dale Hudson)

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Apple faces U.S. antitrust scrutiny -FT

June 11, 2010 By Leave a Comment

(Reuters) – U.S. antitrust regulators plan to investigate whether Apple (AAPL.O) is unfairly restricting rivals such as Google (GOOG.O) from carrying ads on the iPhone, iPad and iPod, the Financial Times said.

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The regulators have already started scanning Apple’s actions, the paper said, citing people familiar with the move.

But it is not yet clear whether the Federal Trade Commission or the Department of Justice would take up an investigation, the Times said.

Apple could not immediately be reached for comment by Reuters outside regular U.S. business hours.

On Wednesday, Google said recent changes to Apple’s developers agreement would effectively cripple Google’s advertising tools for the iPhone, creating “artificial” barriers to competition. [ID:nN09161870]

Apple changed the language of the agreement on Monday, which now appears to prohibit certain third-party ad agencies from collecting critical usage data from iPhone applications. (Reporting by Sakthi Prasad in Bangalore; Editing by Mike Nesbit)
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