Venezuela shrinks nationalization payment to Exxon
By mercurialyVenezuela shrinks nationalization payment to Exxon
hollister uk CARACAS (Reuters) - Venezuela's PDVSA said on Monday it will pay Exxon Mobil Corp $255 million in compensation for nationalized assets - less than a third of what the U.S. oil giant said it was awarded by an arbitration panel.
The South American OPEC member's state oil company issued a defiant statement saying it was deducting debts owed by Exxon, including PDVSA's repurchase of bonds linked to the nationalized project.
That cut down the panel's original award of $908 million, PDVSA said, adding it would make the payment within 60 days.
Paying only $255 million would leave Exxon with only a fraction of the more than $10 billion it originally sought in compensation, and it would be a major victory for Venezuelan President Hugo Chavez that could give oil-producing nations more power in nationalization disputes with companies.
hollister clothing But Exxon may still come away with a larger payment because it is pursuing a separate case against Venezuela before the World Bank's arbitration tribunal. Both cases deal with the 2007 nationalization of the Cerro Negro project in the vast Orinoco heavy crude belt, one of the world's biggest crude reserves.
This week's ruling was made by a tribunal of the Paris-based International Chamber of Commerce, or ICC.
"The decision (by the ICC panel) shows PDVSA was right in believing Exxon Mobil's demands were completely exaggerated and sets the payment at a lower amount than what was claimed," PDVSA said in its statement on Monday, adding that Exxon's original claims were "lacking any logic."
hollister sale Back in September, Venezuela said it had offered Exxon $1 billion in compensation. [ID:nS1E78K26F] Last month, Chavez said he would be happy to discuss "a friendly agreement."
"The government has always said it is willing to compensate for private investments in sovereign decisions to nationalize strategic assets in the national interest, provided such compensation is fair and reasonable," PDVSA said on Monday.
An Exxon spokesman said the ICC decision gave the U.S. company $907.6 million "of real financial benefit" in the form of debt relief and cash, and that about $160.6 million of Exxon debt had already been credited by the tribunal.
"The remaining $746.9 million could be paid through a combination of approximately $305 million in PDVSA funds already held for this purpose by New York courts, PDVSA's cancellation of additional project debt owed by ExxonMobil and payment of additional cash," Patrick McGinn said by email.
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The U.S. company was awarded nearly $908 million by a tribunal of the ICC, which calls itself the world's leading institution for resolving international business disputes.
The ICC does not make its arbitration decisions public, leaving few clues to the criteria behind the valuation. Exxon has said it is still reviewing the more than 400-page document.
PDVSA said on Monday that it was deducting $191 million that Exxon owed it for the repurchase of bonds linked to Cerro Negro, $300 million in offshore PDVSA accounts that Exxon had frozen during the dispute, and $160 million that the ICC panel awarded the Venezuelan company in counterclaims.
hollister The ruling appears to back Venezuela's position that companies whose assets are nationalized should be compensated for the amount invested - sometimes called book value - rather than the market value the assets might fetch if sold.
"The award to Exxon Mobil was less than many of us had expected," said oil industry analyst Oliver Campbell, a former finance coordinator at PDVSA. "Venezuela offered to pay Exxon net book value, which Exxon refused. But in the event, the award was not so much higher than net book value."
Exxon, which held a 42 percent stake in Cerro Negro, said in 2007 that it had invested about $750 million in the project.
hollister hoodies In addition to Exxon's case at the World Bank tribunal, Venezuela also still faces about 20 claims from companies including another oil major, ConocoPhillips , resulting from a wave of state takeovers by the Chavez government.
Exxon's World Bank case is expected to be argued next month.
"If Exxon Mobil continues with this second arbitration and its efforts to secure exorbitant compensation for the nationalization, the Bolivarian Republic of Venezuela will take all necessary steps to defend itself," PDVSA said on Monday.
The often vicious legal dispute, during which Exxon briefly managed to freeze as much as $12 billion in PDVSA assets, underlined the ideological differences between the U.S. oil giant and Chavez's socialist administration. http://www.ukhollistersale.uk.com/Hollister-Hoodies-women-sale-2011
Factory output subdued going into 2012
By mercurialyFactory output subdued going into 2012
abercrombie and fitch london LONDON/MUMBAI (Reuters) - Global manufacturing activity was subdued going into 2012, with the euro zone's industrial sector suffering its fifth straight month of declines in December and Asian factories mostly stuck in a rut.
Monday's purchasing managers indexes (PMIs) provided further evidence that Europe is unlikely to avoid a recession.
The rate of decline of activity in euro zone factories eased slightly to raise hopes the downturn will not be as severe as feared, though hiccups in the Spanish and Czech deficit reduction programs emphasized the extent of the continent's debt troubles.
With Asian PMIs showing a clear lack of momentum in the vast industrial economies of China and South Korea, the United States seems to be one of the few major economies showing signs of an upturn, even if modest and uncertain.
abercrombie and fitch sale Economists expect the U.S. ISM manufacturing survey due at 1500 GMT on Tuesday to show American factories expanded at a faster pace in December.
The Eurozone Manufacturing Purchasing Managers' Index (PMI) rose slightly in December to 46.9 from November's 28-month low of 46.4, but marked a fifth month below the 50 mark that divides growth from contraction.
Compiler Markit said levels of production and new orders fell in all of the euro zone countries covered by the survey for the second month running.
"These numbers are consistent with our view that it's going to be a normal recession," said Dirk Schumacher, senior European economist at Goldman Sachs in Frankfurt.
"Still painful, no doubt about that, but there's no indication that it's going to look like anything like around the end of 2008, so far."
abercrombie and fitch uk Reuters polls of economists suggest the euro zone economy is already stuck in a recession that will last until the second quarter of 2012. They forecast the economy will probably see no growth this year.
Indeed, most economists now expect the European Central Bank (ECB) to counter this by cutting interest rates to 0.75 percent in the next few months, below their record low 1.0 percent.
The PMIs showed the euro zone's peripheral economies tanking in December, with Spain's manufacturing slump extending to eight months, putting pressure on the government to help drive a return to economic growth as it struggles to cut its debt.
Madrid's public deficit for 2011 may be even higher than the above-target 8 percent of gross domestic product forecast by the new centre-right government on Friday, Economy Minister Luis de Guindos said on Monday.
The Czech Republic could let its public deficit grow above target this year if the economy contracts, its Prime Minister Petr Necas was quoted as saying on Monday.
abercrombie uk Worries about the financing of highly indebted European countries sent the euro to a decade low against the Japanese yen on Monday, though moves were exacerbated by thin holiday trade.
ASIA WOBBLES
Asian factory output remained weak in December, with Chinese manufacturers narrowly avoiding contraction and South Korea's industrial production shrinking the most in almost three years.
Taiwan, meanwhile, saw its industrial sector contract for a seventh straight month.
"Although production and new business inflows are still declining, the pace of deterioration eased across the board for the second straight month," HSBC economist Donna Kwok said of the Taiwan data on Monday.
abercrombie kids Worries have grown that China, the world's second-largest economy, is headed for sharply slower growth, undermining its ability to offset looming recession in debt-laden Europe and an uncertain U.S. recovery.
China's official purchasing managers' index, released Sunday, edged up to 50.3 in December from 49 in November.
China is widely expected to announce new policy measures to help boost growth, starting with a cut in the required ratio of reserves it demands commercial banks hold, after trimming it by 50 basis points in November from a record high of 21.5 percent.
India, by contrast, saw strong factory activity in December that defied recent weakness in Asia's third-largest economy.
Activity in the manufacturing sector rebounded in December led by higher demand from both domestic and foreign clients, suggesting that the momentum in the sector is not quite as weak as official and more dated (industrial production) data would suggest," said Leif Eskesen, economist at HSBC.
abercrombie sale Economists expect the U.S. ISM manufacturing survey - another PMI - to rise to 53.2 in December from November's 52.7, which was the best showing since June.
Lufthansa warns EU scheme to raise fares
By mercurialyLufthansa warns EU scheme to raise fares
abercrombie and fitch outlet FRANKFURT/PARIS (Reuters) - Germany's Lufthansa told passengers on Monday to brace for higher ticket prices as it refuses to shoulder the costs of a carbon trading scheme at the centre of a brewing trade spat.
The world's second largest long-haul carrier after Dubai's Emirates said it faced 130 million euros ($169 million) in extra costs this year and became the first major operator to announce possible surcharges since the EU scheme took effect on January 1.
The increases will not go into effect straightaway.
abercrombie outlet Under plans to tackle climate change, airlines touching down or taking off in the 27-nation European Union and three neighbouring nations must account for their CO2 emissions as part of an expansion of the world's largest carbon market.
The United States, China, India and others have attacked the scheme on the grounds that it infringes their sovereignty and that the EU should not act alone. Some have warned of counter-measures, firing talk of the world's first carbon trade war.
The EU says its Emissions Trading Scheme, which already applies to other industries, is the fairest way to cope with aviation's contribution to global warming and cuts through years of inconclusive efforts to come up with a worldwide alternative.
Analysts say Lufthansa is among the airlines most affected by the scheme, along with other European network rivals British Airways owner IAG and Air France-KLM or United Continental and Singapore Airlines.
abercrombie outlet uk Germany's biggest airline said it would add the costs from the EU's Emissions Trading Scheme to its existing fuel surcharge, becoming the first carrier to provide details of how it plans to cope with the additional burden.
"In the face of intensive competition, especially of companies from non-EU countries whose production is subject to emissions trading to only a small degree, Lufthansa will have to pass on the burden via ticket prices, as suggested by the EU," it said in a statement, adding this would not happen in the short term.
Lufthansa last raised its existing surcharges last month -- to between 102 euros and 122 euros per flight leg for intercontinental flights and to 31 euros for domestic and European flights. It said this was purely to cover higher fuel costs.
abercrombie and fitch sale The industry has until now been reluctant to talk about higher prices, saying it would be too difficult to pass on the higher charges because of shaky demand and Europe's debt crisis.
Critics say airlines are using the emissions row as a smokescreen to hit the consumer.
"If you look at the impact on the ETS, that only starts kicking in at the end of the year. It's very clear that they're (airlines) looking for excuses in more or less the same way as the power companies did when the ETS started," said Dutch Green member of the European Parliament Bas Eickhout.
"They already calculated the higher carbon price and they made windfall profits."
2013 CRUNCH POINT
Airlines say they can ill afford the burden on top of soaring fuel prices, fierce competition and national taxes.
The airline industry expects the scheme to cost it about a billion euros this year, rising to 2.8 billion euros by 2020.
abercrombie sale However, the crunch point will not come until March 2013 when airlines will be asked to surrender enough permits to cover this year's carbon emissions or else face stiff penalties.
In practice, industry experts say it will be difficult to gauge the overall impact of the scheme, which depends on the competitive conditions on each route.
"Fares are dynamic. They are going up and down all the time according to market conditions. Carbon is just another cost," said Bill Hemmings, program manager of environmental lobby group Transport & Environment.
abercrombie sale uk "What they (airlines) are more worried about is how the costs will rise over time."
To get the scheme up and running, airlines will collectively receive in 2012 free permits amounting to 85 percent of their estimated needs.
But the industry says these have been under-estimated because travel has increased since they were calculated on the basis of 2004-2006 data and is set to grow further.
Lufthansa said it would need to buy 35 percent of the permits it needs for 2012 on the open carbon market.
Permits have roughly halved in value in the past year to 7.9 euros per ton of carbon amid fears of recession.
The scheme went ahead after Europe's highest court threw out a challenge last month. But the U.S. Congress is considering measures that would forbid U.S. carriers from taking part.
abercrombie and fitch uk Analysts say many airlines may jump in to cover future needs before many of non-EU rivals, discouraged by their governments from taking part, enter the fray.
Crisis talk, austerity calls mark euro anniversary
By mercurialyCrisis talk, austerity calls mark euro anniversary
abercrombie and fitch outlet BERLIN (Reuters) - Policymakers marked the 10th anniversary on Sunday of the introduction of euro notes and coins by urging governments in the currency bloc to save and consolidate to overcome their debt crisis.
While German Finance Minister Wolfgang Schaeuble called the euro "a clear success story" and pledged the currency would remain stable, he also urged vulnerable debtor states to follow a tough savings course in 2012, boost their competitiveness and work to win back market confidence.
"This is not a euro crisis, it is a debt crisis in some euro states," Schaeuble told German newspaper Bild in an interview to be published in Monday's edition of the paper.
The crisis that began in Greece more than two years ago has since forced Ireland and Portugal to seek bailouts and now threatens the efforts of the bloc's third largest economy, Italy, to raise 450 billion euros ($580 billion) to finance its debt burden this year.
abercrombie outlet uk The head of Standard Chartered bank told a British Sunday newspaper that political leaders had yet to offer a meaningful solution to the bloc's debt crisis.
"We enter 2012 with a very difficult outlook for the euro zone ... with an increasing possibility of countries actually leaving the euro zone," Peter Sands, chief executive of the Asia-focused bank, told the Sunday Telegraph newspaper in an interview.
German Chancellor Angela Merkel herself warned 2012 would be harder than 2011 and Europe still had a long way to go in overcoming the crisis.
In Italy, President Giorgio Napolitano called for sacrifices. "No one today can shirk his or her responsibility to contribute to putting the public accounts on track and averting Italy's financial collapse," Napolitano said in a 20-minute, nationally televised address late on Saturday.
abercrombie outlet "It's hard to regain credibility after having lost so much ground, and our bonds -- despite some encouraging signs in recent days -- remain under attack in the financial markets," the 86-year-old president said.
In France, the European Central Bank's Christian Noyer defended the currency union, saying the euro could yet become the world's leading currency if leaders of the 17-nation bloc succeed in tightening fiscal integration.
European Union leaders agreed at an emergency summit on December 9 to draft a new treaty for deeper economic union, with Britain the only country among the 27 EU nations declining to join the initiative.
"If we implement all the decisions taken at the Brussels summit we will emerge stronger," Noyer said in an article for Journal du Dimanche to mark the euro coin anniversary. Notes and coins were introduced in 2002, three years after the currency began trading electronically.
ONE LAST SCHNAPS
abercrombie sale uk In a separate interview, Bundesbank President Jens Weidmann revived an analogy between over-spending governments and alcoholics, saying some politicians reminded him of the drunk "who promises to be sober from tomorrow but asks for the Schnaps bottle one last time today."
Weidmann repeated that Berlin, which itself has flouted European budget rules over the last 10 years, should also be saving more, particularly given its economic strength and special responsibility as an anchor for the euro bloc.
In a advance copy of the interview with Berlin's Tagesspiegel newspaper, due to appear on Tuesday, Weidmann praised the German government for cutting its budget deficit in 2011 but added: "The government's consolidation pause in the new year is not convincing ... we need to see a balanced budget achieved swiftly."
abercrombie sale Germany's Bundestag lower house of parliament last November approved a 2012 budget which sees net new borrowing of 26.1 billion euros, up from net new borrowing of 22 billion in 2011.
The country's Spiegel magazine reported net new borrowing this year could reach 35 billion euros, without citing sources, due to contributions Germany must pay into the permanent euro zone rescue fund. A Finance Ministry spokeswoman declined to comment on the report, but said contributions to the rescue fund would likely be settled at the end of January.
The budget deficit is seen at around 1.3 percent in 2011, down from 4.3 percent in 2010, helped by strong tax revenues. The government sees a deficit of 1 percent in 2012, 0.7 percent in 2013 and a balanced budget by 2014.
While Weidmann has frequently encouraged the government to set a good example to euro zone peers by saving, German consumers are being urged to spend more by euro zone peers to support the regional economy.
abercrombie and fitch sale However, the German economy is forecast to slow sharply in 2012 from the likely 3 percent growth pace of 2011.
Turning to the ECB, Weidmann rejected suggestions he is isolated on the governing council in his strong opposition to the central bank buying up government bonds in the open market to hold down borrowing costs.
While investors and traders say the ECB could stop the crisis by buying up sovereign bonds in much bigger quantities, the Bundesbank has led opposition to even the current smaller scale purchases.
"We can only maintain the necessary pressure on politicians when the ECB limits itself to its primary aim of keeping inflation under control and doesn't jump into the breach for fiscal policy... we must set clear boundaries," Weidmann said.
louis vuitton outlet "I don't see how we can overcome a crisis of confidence by ignoring the rules."
Arbitration Award for Exxon Is Detailed
By mercurialyArbitration Award for Exxon Is Detailed
louis vuitton outlet Exxon Mobil could receive as much as $555 million in cash from the Venezuelan government as a result of an international arbitration ruling over the nationalization of the company’s assets, according to details of the award made public on Monday.
The arbitration award decided by the International Court of Arbitration, which is based in Paris, was valued at $907.6 million. In addition to the cash Exxon stands to receive, the oil giant will be released from the payment of debts totaling about $352 million. The ruling was dated Dec. 23, but Exxon said it did not receive the decision until Friday.
The Venezuelan government and Exxon both sought to portray themselves as victors in the arbitration, which stemmed from the 2007 nationalization of a heavy crude oil production project in the Orinoco Belt, considered one of the world’s richest potential petroleum reserves.
Petróleos de Venezuela, the state-run oil company, released a statement on Monday saying that Exxon had sought a much larger compensation and that the arbitrator’s conclusion showed that the company’s claims were “exorbitant” and “completely exaggerated and beyond all logic.”
The state oil company said that its “successful defense” in the case meant that it was required to make only a $255 million payment to Exxon.
www.louisvuittonoutletlover.com But the state oil company’s statement acknowledged that Exxon would also receive about $300 million in cash from bank accounts in the United States belonging to the state oil company; those accounts were frozen by a court ruling after the nationalization. Exxon said the frozen accounts contained $305 million.
The government statement said that Venezuela has always been willing to compensate private interests for the nationalization of assets as long as the compensation was “fair and reasonable.”
In a statement Monday, Exxon said that the arbitration affirmed the state oil company’s contractual liability in its agreements with Exxon over what was known as the Cerro Negro project.
“Contract sanctity and respect for the rule of law are core principles used to manage our business over the long term,” Exxon said.
The nationalization of the Exxon project and other oil projects involving multinational corporations was a major step in a campaign of expropriations by the government of Venezuela’s president, Hugo Chávez.
Exxon and Venezuela are involved in a second arbitration over the same project before the International Center for Settlement of Investment Disputes, part of the World Bank, which could increase the amount the company receives.
The country faces several other potential settlements with foreign companies over a spate of nationalizations that have taken place in recent years. One of those involves a project of the oil company Conoco Phillips, also in the Orinoco Belt.
louis vuitton outlet The ruling appeared to lend weight to Venezuela’s argument that it should compensate companies for the amount they had invested, the so-called book value, rather than the market value that an asset would receive if it were put up for sale.

