News & Reports News Year 2010 June , 2010 14th June 2010

14th June 2010

Iran says guarantee foreign investment


Iran’s central bank will guarantee foreign investors a return of 10 percent on their capital, a newspaper reported on Saturday.

Iran daily quoted Central Bank Governor Mahmoud Bahmani as saying the new policy was aimed at attracting investment during a time of economic crisis in many parts of the world.

“Iran will pay a guaranteed 10 percent interest on foreign investment ... the central bank and ministry of economy will guarantee the return of the principal and capital profit,” Bahmani was quoted as saying.

He did not specify if the guarantees would apply to investments in particular sectors.

Last Wednesday, the UN Security Council passed a fourth round of sanctions on Iran, aimed at pressuring it to curb its nuclear enrichment activities.

Sanctions against Iran have either prevented or discouraged companies from many countries, especially the United States and Europe, from investing in Iran, the world fifth biggest oil exporter.

Iranian President Mahmoud Ahmadinejad dismissed the sanctions as no worse than “pesky flies” but some economists say the measures -- and tougher action expected soon from the United States and the European Union -- will add to Iran’s economic strains.

Over 3,700 agro projects to be inaugurated


The Iranian Agricultural Jihad minister stated that over 3,700 projects costing about $480 million will be inaugurated during the national Agriculture Week which ends on June 17.

The Islamic Republic of Iran Broadcasting quoted Sadeq Khalilian as saying that when these projects come on stream 18,000 new jobs will be created.

He added that 4 million tons of surplus wheat of farmers have been bought so far which is 30% more than the same period last year.

“It is predicted that farmer’s surplus wheat will exceed 11 million tons,” he said.

In regard to barley production he added, “This year (Iranian calendar year starting March 21) 4 million tons of barley will be produced which constitutes 90% of the countries needs.”

Benefiting from 123,580 square kilometers of land suitable for agriculture, the agricultural sector is one of the major contributors to Iran's economy. It accounts for almost 13 percent of Iran's GDP, 20 percent of the employed population, 23 percent of non-oil exports, 82 percent of domestically consumed foodstuffs and 90 percent of raw materials used in the food processing industry

Tehran Stock Market
NICICO to cede shares today


1-percent block of shares of the National Iranian Copper Industries Company will be offered on the stock market today.The block of shares equals 57,896,446 shares with 7908 rials (some $0.7) as base price, the Islamic Republic of Iran News Network reported.

According to Iran’s Fourth Five-Year Economic Development Plan (2005-2010), the IPO, affiliated to the Ministry of Economic Affairs and Finance, is in charge of setting prices and offering shares to the general public and on the stock market.

In 2007, Supreme Leader Ayatollah Ali Khamenei ordered that government officials speed up implementation of the policies outlined in the amendment of Article 44, and move towards economic privatization

Tehran to host 3rd Intl. CNG Conference


Iran will hold ""The 3rd International Conference on CNG and Related Industries"" (IRAN NGV 2010) with 9 countries taking part later this summer in Tehran.

The Mehr News Agency reported that the International Association for Natural Gas Vehicles (IANGV) and the Asia Pacific Natural Gas Vehicles Association (ANGVA) have announced their readiness to take part in the function.

The executive secretary of the conference said that CNG-burning vehicles are used in 15 countries, adding that, Turkey, South Korea, Malaysia, China, Argentina, Brazil, Pakistan, India, and Germany have announced their readiness to take part in the three-day conference.

Mohsen Mashayelkhi noted that Iran’s objective in the gathering is to follow up on the macro-policies of the administration for exporting technical and engineering services in CNG-related fields

Iran ups crude prices to Europe, cuts Asia rates


Iran has sharply raised the official selling prices (OSPs) for its crude to Northwest Europe and the Mediterranean for July, a source with National Iranian Oil Company (NIOC) said. However it cut the OSPs for its crude for July loading to Asia.

The cut is in line with traders’ expectations after Saudi Arabia lowered the price of rival Arab Medium grades to the lowest in 17 months, the source added.

Oil Price
Oil at $70-80 ‘is good for investment’


price range for oil of $70-80 per barrel was acceptable and good for maintaining investments, while global oil markets are still oversupplied but not excessively so, said UAE’s Oil Minister.

Oil prices were reacting to other factors such as euro zone financial troubles, UAE Oil Minister Mohammed Al Hamli said.

“There is enough crude in the market; there is certainly no shortage,” said Al Hamli on the sidelines of a conference in Beijing. He added market fundamentals are quite good.

US crude futures stood steady on Friday after closing at a four-week high above $75 per barrel on Thursday, supported by a rosier oil demand forecast, a Wall Street stock rally and China’s surprisingly strong export data.

On the development of the UAE’s $10 billion Shah gas project, Al Hamli said the UAE would look for another strategic partner to push ahead investment after the withdrawal of US company ConocoPhillips in late April.

“The project is on schedule. We will find a partner - we need a strategic partner,” he said.

The UAE is the world’s third-largest oil exporter and has the world’s fifth-largest gas reserves. It is spending tens of billions of dollars to boost gas capacity to meet rapidly growing domestic demand.

Airbus delays debut of A320-successor until 2027


Airbus SAS may need until 2027 to introduce an all-new single-aisle plane because new materials and engine technologies won’t be ready before then.

The Toulouse-based planemaker is studying whether it has engineering resources to commit to offering existing models with new engines to help airlines cut fuel costs.

The time needed to perfect the next generation of turbines means a new plane for short- and medium-haul routes may be delayed as many as three years, Chief Operating Officer John Leahy said in an interview.

“The real game-changing technologies in airframes, systems and engines will come around 2025, 2027,” Leahy said in an interview at the Berlin Air Show.

A replacement for the A320 before then “doesn’t make any sense, because the technology’s not there.”

Single aisle passenger jets are the workhorses of low-cost airline fleets, and are widely used by carriers.

Both Airbus and U.S. rival Boeing Co. had initially considered introducing successors to the A320 and 737 series by 2018. Airbus later moved the target to 2024.

Global airlines flying both jets are keen to see manufacturers bring out new planes with advanced engines that provide savings on fuel, airlines’ No. 1 cost. Fuel prices of about $75 a barrel make the need less critical, yet airlines want to prepare for higher prices later on.

For now, both manufacturers have been looking at whether to offer their existing planes with new engines that would at least increase fuel-efficiency by some 15 percent. Both are promising decisions by yearend.

Boeing on June 3 said the timetable for developing a new narrow-body jet is the “No. 1 thing” in the planemaker’s decision on whether to offer other engines for its best-selling 737 airliner. While Airbus and Boeing single-aisle models dominate the commercial aerospace market today, they are facing the prospect of that duopoly disappearing as they face threats from smaller rivals including Bombardier Inc. and China’s state-owned company, Comac. Bombardier’s CSeries and Comac’s C919 would offer engines that may boost fuel efficiency 15 percent.

Between them, Boeing and Airbus have a backlog of 4,500 narrow-body jets.

FTSE climbs as optimism returns


London's leading shares climbed again on Friday, aided by an overnight rally on Wall Street, as optimism in the global economy returned.The FTSE 100 index of leading shares was up 0.61 percent at 5,163.68 points by the close of trading.

The “appetite for risk has improved dramatically over the past few sessions of trade, with a number of positive developments in the global macro economy helping to bolster the improved sentiment,” said analyst Joel Kruger at currency trading website Daily FX.

After being Thursday's worst performer, BP plc made a dramatic recovery on Friday, making the greatest gains of any security. BP shares added 26 pence -- or 7.22 percent -- to end at 391.9. Cable and wireless was the second best performer of the day, adding 4 pence -- or 4.53 percent -- to finish at 88.85.

Aggreko plc was the session's biggest faller, losing 58 pence -- or 3.94 percent -- to close at 1,415, followed by Lloyds Banking Group (LBG), which shed 2 pence -- or 2.83 percent -- to end at 54.33.
BP plc was also the most traded stock, seeing 200 million shares change hands, followed by LBG, which saw 181 million units switch owners.

Hand-woven carpet exports increase


Iran’s hand-woven carpet exports increased in both terms of value and volume in the first two months of current Iranian calendar year (ended May 21) in comparison to the same period last year.

The value of exported carpets reached $56 million in the mentioned period from the previous year’s figure of $43.6 million, IRNA News Agency reported.

The weight of the carpets was 800 tons in the two-month period while it was 700 tons last year.

These numbers show about 28.37 percent and 15.96 percent increase in value and in volume, respectively

Automakers Iran car output up 9%


Domestic car producers manufactured 218,694 cars of different types in the first 2 months of the current Iranian calendar year (started March 20, 2009).

The amount shows a 9 percent increase compared with the figure corresponding to the same period last year, the Islamic Republic of Iran News Network reported.

In the mentioned period, 187,507 passenger cars have been produced, which is 9.5 percent more than the year before.

Oil Global Market Iran oil ind. to draw $50bn in funds


Iran's oil industry is expected to absorb more than $50bn in foreign investment by March 2011 given the projects already underway across the nation.

"We welcome foreign investment in the projects. However, we will tap into domestic potential if there is a lack of foreign finances", Iran's Deputy Oil Minister Ahmad Ghal'e Baani was quoted by IRNA as saying on Saturday.

On Iran's oil policies in the wake of the new UN sanctions resolution against the country, he said "A series of measures will definitely be adopted in that regard".

"Iran's oil industry has long been operating independently and does not need others' (foreigners') decisions", added the top official.

He underlined Iran will use sanctions as an opportunity to utilize local potentialities.

"Iran's current oil production hovers around more than four million barrels per day which is based on the quota set by the Organization of Petroleum Exporting Countries (OPEC)", added the deputy oil minister.

OPEC's official output ceiling presently stands at 24 million 850 thousand barrels per day.

Iran opens exclusive expo in Iraq's Arbil


Iran’s fifth exclusive fair in Iraq's city of Arbil, Kurdistan region, kicked off on Tuesday.The Iranian ambassador to Iraq, the Iraqi Kurdistan's commerce minister, as well as some other Iraqi officials attended the opening ceremony, the Mehr News Agency reported.

Over 305 Iranian companies from 23 provinces have taken part in the event which is Iran’s eighth exclusive fair in Iraqi Kurdistan.

The exhibition will run until May 15

Global Economy world Bank says the economic situation in
Spain is “very serious”


The World Bank says the economic situation in Spain is “very serious”. “The global economic recovery continues, but the debt crisis of Europe has placed new obstacles in the path to a sustainable medium-term growth,” says the report released Friday.

The World Bank says the economic situation in Spain is “very serious”. The World Bank said that the economic situation in Spain is “very serious” but noted that the fiscal austerity measures taken by the Government are in the “right direction.”

“I think the situation in Spain is very serious and with extremely high unemployment,” said the director of World Bank macroeconomic trends, Andrew Burns, during a press conference which introduced the Global Economic Prospects report for 2010.

Burns stressed that it was “probable” that the fiscal consolidation measures implemented by the Spanish Government will reduce its risky position. He also mentioned that market indicators show that investors see the situation in Spain as less serious than that of Greece or Portugal.

The World Bank forecasts that the world economy will grow between 2.9 and 3.3 percent this year and next, above the 2.7 percent it forecasted in January 2010 and 3.2 for 2011.

The agency believes that the current crisis in Europe is a major threat to global growth.