Singapore Stocks: Keppel, Singapore Exchange, Singapore Telecom

By Simeon Bennett and Chen Shiyin

Sept. 15 (Bloomberg) -- Singapore's Straits Times Index declined 37.31, or 1.5 percent, to 2,533.36 as of 9:21 a.m., on course for its lowest since September 2006. Just two of the benchmark gauge's 30 constituents advanced.

The following companies rose or dropped in Singapore trading. Stock symbols are in parentheses.

Singapore banks: DBS Group Holdings Ltd. (DBS SP), the city's biggest bank, fell 32 cents, or 1.9 percent, to S$16.70, its fifth straight day of losses. United Overseas Bank Ltd. (UOB SP), Singapore's No. 2 bank, declined 30 cents, or 1.6 percent, to S$18.26. Oversea-Chinese Banking Corp. (OCBC SP), Singapore's third-largest, lost 16 cents, or 2.1 percent, to S$7.53.

Financial stocks fell across Asia after Barclays Plc and Bank of America Corp. abandoned talks to buy Lehman Brothers Holdings Inc. and Wall Street prepared for a possible liquidation of the U.S. securities firm.

Cosco Corp. Singapore Ltd. (COS SP), the shipbuilding and repair unit of China's biggest shipping company, tumbled 14 cents, or 8.3 percent, to S$1.55, on course for its lowest since April 1999. The shares have plunged 73 percent this year, the biggest decline on the Straits Times Index. Merrill Lynch & Co. and DBS Vickers Securities last week cut their share-price estimates for the stock, citing concern about slowing orders.

Keppel Corp. (KEP SP), the world's largest builder of shallow-water oil rigs, declined 7 cents, or 0.8 percent, to S$8.57. Keppel has won the right to buy an incineration plant from the Singapore government after a bid of S$462 million ($323 million) and will set up a trust for the facility, the company said.

Singapore Exchange Ltd. (SGX SP), the operator of the city- state's securities and derivatives markets, slumped 15 cents, or 2.5 percent, to S$5.97, sliding to the lowest in more than a week. Citigroup Inc. cut its share-price estimate by 27 percent to S$4.70 and reiterated its ``sell'' rating on the stock, saying a looming recession will weigh on turnover.

Singapore Petroleum Co. (SPC SP), the city-state's only publicly traded refiner and explorer, fell 8 cents, or 1.8 percent, to S$4.47, set for its lowest since March 2007. The company cut fuel prices at its service stations by 5 Singapore cents per liter, it said in a Sept. 12 statement after the close of trading.

Singapore Telecommunications Ltd. (ST SP), Southeast Asia's largest phone company, fell 7 cents, or 2.1 percent, to S$3.29, retreating for the fourth time in five days. The company will review a decision of the Indonesian Supreme Court to uphold a ruling that Temasek Holdings Pte breached the nation's anti- monopoly laws before deciding its course of action, Singapore Telecommunications said.

The court upheld a ruling Sept. 12 by the competition regulator, which said Temasek breached antitrust laws by using indirect stakes in PT Telekomunikasi Selular, known as Telkomsel, and PT Indosat to fix prices.

To contact the reporters on this story: Simeon Bennett in Singapore at sbennett9@bloomberg.net; Chen Shiyin in Singapore at schen37@bloomberg.net.



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Australia Stocks: BHP, Macquarie, Newcrest, OZ Minerals, Santos

By Shani Raja and Ian C. Sayson

Sept. 15 (Bloomberg) -- The S&P/ASX 200 Index fell 104.40 points, or 2.1 percent, to 4,799.40 as of 12:02 p.m. in Sydney. The S&P/ASX 200 Index futures contract due in September lost 1.7 percent to 4,840. The All Ordinaries Index decreased 1.2 percent to 4,897.30.

The following is a list of companies whose shares were actively traded in Australia. Stocks symbols are in parentheses after company names.

Financial stocks: Macquarie Group Ltd. (MQG AU), Australia's biggest securities company, dropped A$3.24, or 7.4 percent, to A$40.77, heading for its lowest close since Nov. 10, 2004 after Lehman Brothers Holdings Inc. moved closer to filing for bankruptcy in the U.S. National Australia Bank (NAB AU) sank 86 cents, or 3.6 percent, to A$23.10, the lowest since April 2000.

Barclays Plc and Bank of America Corp. abandoned talks to buy Lehman Brothers and Wall Street prepared for possible liquidation of the U.S. securities firm.


Mining shares: Minara Resources Ltd. (MRE AU), Australia's second-largest nickel producer, gained 8 cents, or 8.1 percent, to A$1.14, the second-best performer on the index. OZ Minerals Ltd. (OZL AU), the world's second-largest zinc mining company, had its biggest gain since Aug. 22, rising 9 cents, or 6.7 percent, to A$1.44.

A measure of six metals traded on the London Metal Exchange advanced 2.9 percent, with zinc climbing 5.1 percent and copper 2.8 percent.

Newcrest Mining Ltd. (NCM AU), Australia's biggest gold producer, advanced A$1.40. or 7.2 percent, to A$20.90, the most since June 27 and the benchmark's third-biggest gainer. Lihir Gold Ltd. (LGL AU), the second-largest producer of the metal on the Australian stock exchange, was the best performer, surging 17 cents, or 9.4 percent, to A$1.98, the most since January.

Fifteen of 28 traders, investors and analysts surveyed from Mumbai to Chicago on Sept. 11 and Sept. 12 advised buying gold, on speculation the dollar's rally against the euro will stall, boosting demand for the precious metal as an alternative investment.

Babcock & Brown Ltd. (BNB AU), the Australian infrastructure manager that's lost most of its market value this year, slumped 15 percent to A$1.62, a record low. Director Phil Green formally resigned from the board, the company said in a statement today.

Centro Properties Group (CNP AU), the shopping mall owner facing a Sept. 30 deadline to repay some of its debt, slumped 2 cents, or 19 percent, to a record low 9 cents, after a planned U.S. asset sale fell through.

Energy & Minerals Australia Ltd. (EMA AU) rallied 10 cents, or 22 percent, to 55 cents, the highest since July 24. Shares of Western Australian uranium explorers gained as the Liberal Party, which has indicated it will allow mining of the nuclear fuel in the state, won the right to govern.

Santos Ltd. (STO AU), Australia's third-biggest oil and gas producer, fell 83 cents, or 4.3 percent, to A$18.54, the most since Sept. 3. The company faces a blow-out in the clean-up bill from a mud flow in East Java that started in 2006 and affects 75,000 people, the Australian Financial Review said. Santos's share of the mitigation cost could be as high as A$830 million, nearly 10 times more than the company has disclosed to the market, the newspaper reported.

To contact the reporter on this story: Ian C. Sayson in Manila at isayson@bloomberg.netShani Raja in Sydney at sraja4@bloomberg.net.


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Daily Technical Analysis

Daily Forex Technicals | Written by FX Instructor | Sep 15 08 03:22 GMT |

EURUSD Outlook

The EURUSD recovered on Friday, topped at 1.4232 and closed at 1.4228. Early today in Asian market the pair continued it's bullish momentum, traded around 1.4340 at the time I wrote this comment. From a broader view, we are in an important phase as the pair is now testing a major resistance level at 1.4357 (red line on the chart). A break from that level could trigger further bullish scenario towards 1.5000 area, while a failure would keep bearish scenario intact. My model is mixed with upside bias. CCI just cross -100 line up on daily chart suggesting a potential bullish view.

EURUSD Daily Supports and Resistances:

S1= 1.4056
S2= 1.3884
S3= 1.3796
R1= 1.4316
R2= 1.4404
R3= 1.4576
GBPUSD Outlook

The Sterling continued to recover against Greenback on Friday. The pair topped at 1.7959 and closed at 1.7939. Early today in Asian market the pair is traded higher, around 1.8025 at the time I wrote this comment. My model is mixed with upside bias. Immediate support is seen at 1.7950. Initial resistance at 1.8085. CCI just cross -100 line up on daily chart, suggesting a potential bullish view.

GBPUSD Daily Supports and Resistances:

S1= 1.7667
S2= 1.7395
S3= 1.7249
R1= 1.8085
R2= 1.8231
R3= 1.8503
USDJPY Outlook

The USDJPY was traded higher on Friday, topped at 107.97 and closed at 107.93. However we have huge gap of 196 pips in Asian market opening today as the pair was opened at 105.97 and traded around 106.15 at the time I wrote this comment. My model is mixed with downside bias. Immediate resistance is seen at 106.86. Initial support at 105.50. CCI just cross -100 line down on daily chart suggesting a potential bearish view.

USDJPY Daily Supports and Resistances:

S1= 107.10
S2= 106.27
S3= 105.84
R1= 108.36
R2= 108.79
R3= 109.62
USDCHF Outlook

The USDCHF was corrected lower on Friday. The pair bottomed at 1.1290 and closed at 1.1298. I am expecting further bearish scenario today. My model is mixed with downside bias. Immediate resistance is seen at 1.1220. Initial support at 1.1127 followed by 1.1080. CCI just cross -100 down on daily chart suggesting a potential bearish view.

USDCHF Daily Supports and Resistances:

S1= 1.1259
S2= 1.1220
S3= 1.1150
R1= 1.1368
R2= 1.1438
R3= 1.1477

FX Instructor LLC
www.fxinstructor.com

The information has been prepared for information purposes only. The document is not intended as personalized investment advice and does not constitute a recommendation to buy, sell or hold investments described herein. This information contained herein is derived from sources we believe to be reliable, but of which we have not independently verified. FXInstructor LLC assumes no responsibilities for errors, inaccuracies or omissions in these materials, nor shall it be liable for damages arising out of any person's reliance upon this information. FXInstructor LLC does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. FXInstructor LLC shall not be liable for any indirect, incidental, or consequential damages including without limitation losses, lost revenues or lost profits that may result from these materials. Opinions and estimates constitute our judgment and are subject to change without notice. Past performance is not indicative of future results



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Pink Floyd's Money Travels Long Way to Mongolia: William Pesek

Commentary by William Pesek

Sept. 15 (Bloomberg) -- Everyone has globalization moments, those surreal intersections of foreign influences and familiar rhythms. This one involves Pink Floyd and Mongolia.

Last Friday, Air China 902 was packed with more white faces than you would typically see on flights from Ulaanbaatar to Beijing. It was carrying many of the 200 international financiers attending a EuroMoney conference on investing in Mongolia.

As they shuffled aboard, Pink Floyd's ``Money'' was playing overhead. It was impossible to miss the irony of a diatribe against capitalism serving as a soundtrack of sorts to the gold- rush dynamic in one of Asia's most impoverished nations. Thanks to underground riches like copper and gold, Mongolia is on the cusp of a huge influx of money.

That's where the trouble begins.

It's not hard to find Mongolia's poverty. As more of the nation's 2.7 million people cluster around cities such as Ulaanbaatar, many in this traditionally nomadic country can't find jobs. More than half of those in Ulaanbaatar live in yurts or other types of temporary housing.

Mongolia's future is about to be dug out of the ground. Its nascent mining boom is the quickest route to prosperity. Some analysts say it will boost gross domestic product by more than 30 percent within a few years. The official estimate for growth in 2008 is almost 9 percent.

You would think observers of a place where average incomes are less than $200 a month would be rather enthused about all this. In the case of economists such as Tserenpuntsag Batbold, who works in New York for the United Nations Secretariat's Financing for Development Office, you would be mistaken.

Resources and Poverty

As a Mongolian, Batbold understands his nation is holding a winning lottery ticket. His concern is the strong correlation between poverty and countries with natural resources such as gold, oil or diamonds. Resource wealth tends to breed corruption and tunnel vision among leaders.

``There is no question about the potential for Mongolia, and I'm quite optimistic,'' Batbold says. ``But we need to make sure we do better than other nations have done with their riches.''

Adds Graeme Hancock, the World Bank's senior Mongolia mining specialist: ``The question is how Mongolia avoids being overwhelmed by its resources -- how the people derive value from them.''

Investors complain the government is dragging its feet on revised laws dictating how mining proceeds will be divided. Companies Rio Tinto Group and Ivanhoe Mines Ltd., which invested more than four years seeking approval for a $3 billion project to develop Mongolia's Oyu Tolgoi deposits of gold and copper, are left wondering what gives.

Doing Right Thing

An argument can be made that Mongolia needs to act faster to allow miners to do their thing. There's a better one for Mongolia to take its time to make sure it gets these decisions right.

From Nigeria to Indonesia to Sierra Leone, history has too many examples of governments mishandling resources. Politicians and the well-connected get wealthy, while the needs of broader populations are ignored. Contracts are handed out with little transparency, ensuring profits are concentrated among the elite.

The sudden appearance of vast resources gives governments less incentive to create other viable industries. Why bother to nurture manufacturing, agriculture or textile industries that would employ much of the population when the real money is in minerals and energy?

``Mongolia is at such a vital crossroads today,'' says Chuluundorj Khashchuluun, director of economics at the National University of Mongolia. ``We will look back in 10 years and be wealthier because of decisions made today, or wondering how things went very wrong.''

Political Will

Political will is the key variable. One of Batbold's concerns is ``institutional weakness'' in a democracy as young as Mongolia's. At the early stages of any resources boom, it's necessary to have independent lawmakers, regulators and courts making sure the people benefit. Here, Mongolia has a way to go.

``It's important to see whether the government is ready to enforce what it needs to,'' says Bert van der Toorn, Singapore- based managing director at ING Wholesale Banking.

Mongolia has a number of comparative advantages. For example, 30 percent of its people are younger than 15. Proximity to fast-growing China is another. The catch is that the government has to do the right things, striking a careful balance between maximizing its take of resources and not spooking foreign investors. It also must spread the benefits of the coming surge in GDP growth to those who need it most.

There's reason to think Mongolia will get it right, and its financial community is a case in point. Officials have been traveling the globe soaking up intelligence from stock- and bond- market experts. They are gaining insights and using them to make Mongolia's stock market international.

Similar fact-finding efforts are afoot on the mining front. With so many examples of what not to do, officials may be able to steer away from the so-called oil curse.

That way, it won't only be foreigners who, as Pink Floyd sang 35 years ago, ``grab that cash in both hands and make a stash.'' Mongolians will, too.

(William Pesek is a Bloomberg News columnist. The opinions expressed are his own.)

To contact the writer of this column: William Pesek in Ulaanbaatar, Mongolia at wpesek@bloomberg.net



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OPEC Says `Thank You' as Dollar Tempers Oil Drop: Chart of Day

By Alexander Kwiatkowski

Sept. 15 (Bloomberg) -- OPEC members' dismay at the 30 percent plunge in oil from July's record has been tempered by the rising value of their dollar revenues from selling crude.

The CHART OF THE DAY plots the drop in the price of October crude oil futures since reaching a record $148.13 on July 11. The upper line shows the oil price adjusted to reflect the 13 percent increase in purchasing power delivered by the dollar's gain against the euro in the same period.

``Despite all the rhetoric, with the rally in the dollar index, OPEC is still saying `thank you very much,''' Olivier Jakob, managing director of Petromatrix Gmbh in Zug, Switzerland, said. ``For OPEC, $80 now is the same as $100 two months ago.''

The Organization of Petroleum Exporting Countries' oil revenues will rise to a record $1.23 trillion this year, almost double 2007's level, the U.S. Department of Energy said on Sept. 11. Saudi Arabian oil minister Ali al-Naimi, who sets energy policy in OPEC's largest exporter, said last week that the rising dollar was compensating producers for lower prices.

To contact the reporter on this story: Alexander Kwiatkowski in London at akwiatkowsk2@bloomberg.net



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Daily Forex Market Commentary

Daily Forex Technicals | Written by Global Forex Trading | Sep 15 08 01:21 GMT |

The dollar collapsed on Friday versus all majors except the yen on expectations that it recovered as much as it could for the time being. The soft retail sales didn't help, and the market, while obsessed with the resolve of Lehman Brothers, cannot ignore the risk of other big names in trouble, such as Wa Mu. With the oil prices bouncing from $100/brl, commodities should bounce today as well. Since the uptrend of the dollar remains intact, take your cues from the reaction of the market to the Lehman outcome at the end of weekend.
Euro/dollar

Euro/dollar surged on Friday to recover part of last week's losses that hit to a near 2 ½ year-low on Thursday. My model went long on profit taking. The pair must close above 1.4262 to signal a more sustained recovery.

Above 1.4262, strong resistance is seen between 1.4385 and 1.4395. Above 1.4450, distant resistance is at 1.4625.

Immediate support is at 1.4150. Below 1.4085, support is at 1.4010.

Oscillators are mixed

NEAR-TERM: Bullish
MEDIUM-TERM: Bearish
LONG-TERM: Bearish
Dollar/yen

Dollar/yen has been alternating up and down days for four days and Friday was an up day. My model went long, but it's not all that exciting.

Immediate resistance remains at 107.95 from a 50-point pivot, which targets 107.45 and 108.45. Above 108.70, resistance remains at 109.15 from another 50-point pivot, which targets 109.65 and 108.65. Distant resistance is at 110.35 from a 50-point pivot, which targets 109.85 and 110.85.

Initial support is at 106.75 from a 50-point pivot, which targets 106.25 and 107.25. A pivot low is at 105.53.

Oscillators are mixed.

NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Mixed
Sterling/dollar

Sterling/dollar surged impressively on Friday and turned my model long. The short term is bullish, but the medium-term outlook remains bearish.

Initial resistance is at 1.7975. Above the strong level at 1.8000, further resistance is seen at 1.8100 and 1.8190.

Below 1.7840, strong support is at 1.7732. Below 1.7672, a pivot low is at 1.7448

Oscillators are mixed.

NEAR-TERM: Slightly bullish
MEDIUM-TERM: Bearish
LONG-TERM: Bearish
Dollar/Swiss franc

Dollar/Swiss franc fell sharply enough on Friday to turn my model short. The initial bias is lower, but the uptrend remains in place.

Immediate support is at 1.1240. Below 1.1144, support is pegged at 1.1090. This is still followed by 1.1010.

Initial resistance comes at 1.1360. Above 1.1417 there is a pivot high at 1.1605.

Oscillators are mixed.

NEAR-TERM: Slightly bearish
MEDIUM-TERM: Bullish
LONG-TERM: Bullish

Cornelius Luca
Global Forex Trading
http://www.gftforex.com

DISCLAIMER: This forum and the information provided here should not be relied on as a substitute for extensive independent research before making your investment decisions. Global Forex Trading is merely providing this column for your general information. The views of the author are not necessarily those of Global Forex Trading, its owners, officers, agents or employees. In addition, any projections or views of the market provided by the author may not prove to be accurate. Global Forex Trading and Cornelius Luca will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained in this column. Global Forex Trading and Cornelius Luca do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.



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Oil Falls to Six-Month Low as U.S. Refineries Prepare to Resume

By Mark Shenk

Sept. 15 (Bloomberg) -- Crude oil fell to a six-month low in New York and gasoline tumbled as refineries along the Gulf of Mexico coast prepared to resume operations after escaping major damage from Hurricane Ike.

More than 20 percent of U.S. oil refining capacity was shut down, limiting fuel deliveries and prompting the Department of Energy to release 309,000 barrels from its strategic reserves. New York Mercantile Exchange electronic trading opened early yesterday to allow traders to respond to Ike.

``It looks like we've dodged another bullet,'' said Peter Beutel, president of energy consultant Cameron Hanover Inc. in New Canaan, Connecticut. ``The refineries in the Houston area seem to have come out of the storm remarkably intact.''

Crude oil for October delivery fell as much as $2.72, or 2.7 percent, to $98.46 a barrel in after-hours electronic trading on the Nymex, the lowest since Feb. 26. The contract was at $99.68 at 7:44 a.m. in Singapore. Prices are up 24 percent from a year ago.

Gasoline for October delivery fell as much as 14.71 cents, or 5.3 percent, to $2.6225 a gallon in New York. The contract was at $2.675 at 6:45 a.m. in Singapore.

CME Group Inc., the world's biggest futures exchange, began electronic trading of energy contracts on the Nymex at 10 a.m. New York time yesterday.

Oil in New York has fallen 32 percent from a record $147.27 a barrel on July 11 as high prices and slowing global economic growth reduce demand for fuels.

Retail Sales

Sales at U.S. retailers dropped in August for a second straight month and July inventories at American businesses increased the most in four years, Commerce Department reports showed last week.

``Growing fears about the economy are trumping any fears about the damage caused by Hurricane Ike,'' said John Kilduff, senior vice president of risk management at MF Global Inc. in New York. ``The broader issue is the weakness of the financial system. Given the Lehman and WaMu watch, cash looks better than any speculative investment.''

Barclays Plc, the U.K.'s third-biggest bank, pulled out of talks to buy Lehman Brothers Holdings Inc. yesterday as the U.S. government raced to find a solution for the faltering investment bank. Washington Mutual Inc. plummeted in New York trading last week on speculation about its financial health.

A total of 14 Texas and Louisiana refineries, with combined crude processing capacity of 3.57 million barrels a day, are shut because of Ike.

`Little Damage'

``We think in probably a week to 10 days we should have a majority of the refineries back up,'' said James Cordier, founder of Tampa-based OptionSellers.com. from New York. ``Very little damage was done.''

Valero Energy Corp., the largest U.S. refiner, said it found ``no significant structural damage'' at three Houston-area refineries shut before the storm. One Valero refinery had power at most production units, the company said. Exxon Mobil Corp. said its Baytown refinery, the largest in the U.S., has power and damage appears ``limited,'' while it is checking its Beaumont, Texas, plant, which is without power.

ConocoPhillips said its Sweeny, Texas refinery has power and its condition is being assessed. LyondellBasell Industries' Houston refinery will be down for at ``least several days,'' said David Harpole, a company spokesman. Marathon Oil Corp. and Motiva Enterprises LLC said they were evaluating their plants.

Colonial Pipeline Co. said yesterday it restored operations to its gasoline and distillate pipelines, which run from the Gulf Coast to the Northeast.

`Major Disaster Area'

CenterPoint Energy Inc., Houston's electricity distributor, said yesterday about 81 percent of its customers remained without power a day after the hurricane struck Texas, and that it may take a month to fully restore supplies. President George W. Bush declared the state a major disaster area and city police imposed a nighttime curfew through this week, warning of downed power lines, broken traffic signals and water-filled roads.

``The crude oil price should be lower because with the refineries down, there is nowhere for it to go,'' Kilduff said. ``The drop in product prices may be short-lived because some of these refineries could be down for weeks.''

Heating oil dropped as much as 10.66 cents, or 3.6 percent, to $2.8325 a gallon in New York, the lowest since March 5. The contract was at $2.8538 a gallon at 6:15 a.m. in Singapore. Yesterday's trades of futures contracts are being recorded as part of today's session.

The storm idled about 99.6 percent of oil production and 91.9 percent of natural-gas output in the Gulf of Mexico, the U.S. Minerals Management Service said yesterday. Gulf fields produce 1.3 million barrels oil a day, about a quarter of U.S. output, and 7.4 billion cubic feet of gas, 14 percent of the total, government data showed.

Natural gas for October delivery rose as much as 14.3 cents, or 1. percent, to $7.509 per million British thermal units in New York. The contract was at $7.465 at 6:43 a.m. Singapore time.

The Energy Department said Sept. 13 it has released a total of 939,000 barrels of crude oil from its Strategic Petroleum Reserve because of shortages at refineries caused by Ike and Hurricane Gustav.

To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net



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Toro, Energy Rise as West Australia Set to Allow Uranium Mines

By Jason Scott

Sept. 15 (Bloomberg) -- Toro Energy Ltd. and Energy & Minerals Australia Ltd. led gains in shares of Western Australian uranium explorers as the Liberal Party, which has indicated it will allow mining of the nuclear fuel in the state, won the right to govern.

Toro rose as much as 48 percent to 32 Australian cents in Sydney trading, the largest advance since March 2006. Energy & Minerals surged 28 percent to 57.5 cents, the most in a week. Uranex NL gained 28 percent to 30 cents, the biggest jump since April 2006.

The Liberals want to open the state, which accounts for more than a third of the nation's exports, to uranium miners such as Cameco Corp., the world's biggest producer, and BHP Billiton Ltd. Western Australia has as much as 10 percent of the world's known uranium reserves, worth about A$40 billion ($32 billion), according to an estimate from the federal government last year.

Perth-Based Energy & Minerals wants to mine uranium at its Mulga Rocks Deposits, 250 kilometers (155 miles) east-northeast of Kalgoorlie. Uranex, also based in the Western Australian capital, has deposits at Thatcher Soak, 130 kilometers northeast of Laverton.

The election result means Adelaide-based Toro will work on enhancing its Wiluna project, which includes the Lake Way and Centipede deposits east of Meekatharra, it said in a statement today.

``We can now focus on enhancing the resource, environmental, economics, health and technical analysis of Wiluna to ensure its project economics provide the right value for the Company's shareholders and for potential development,'' Toro Energy Managing Director Greg Hall said in the statement.

Liberal leader Colin Barnett will take over from Labor's Alan Carpenter as the state's new premier, ending a week of political gridlock after a Sept. 6 poll failed to produce a clear winner.

To contact the reporters on this story: Jason Scott in Perth at Jscott14@bloomberg.net;



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OPEC Says `Thank You' as Dollar Tempers Oil Drop: Chart of Day

By Alexander Kwiatkowski

Sept. 15 (Bloomberg) -- OPEC members' dismay at the 30 percent plunge in oil from July's record has been tempered by the rising value of their dollar revenues from selling crude.

The CHART OF THE DAY plots the drop in the price of October crude oil futures since reaching a record $148.13 on July 11. The upper line shows the oil price adjusted to reflect the 13 percent increase in purchasing power delivered by the dollar's gain against the euro in the same period.

``Despite all the rhetoric, with the rally in the dollar index, OPEC is still saying `thank you very much,''' Olivier Jakob, managing director of Petromatrix Gmbh in Zug, Switzerland, said. ``For OPEC, $80 now is the same as $100 two months ago.''

The Organization of Petroleum Exporting Countries' oil revenues will rise to a record $1.23 trillion this year, almost double 2007's level, the U.S. Department of Energy said on Sept. 11. Saudi Arabian oil minister Ali al-Naimi, who sets energy policy in OPEC's largest exporter, said last week that the rising dollar was compensating producers for lower prices.

To contact the reporter on this story: Alexander Kwiatkowski in London at akwiatkowsk2@bloomberg.net



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West Australia Set for Uranium Mines as Liberals Win Government

By Jason Scott and Robert Fenner

Sept. 15 (Bloomberg) -- Western Australia's uranium-related companies are set for a boost after the Liberal Party, which favors ending a ban on mining the nuclear fuel, yesterday won the backing of the Nationals to form government.

Liberal leader Colin Barnett will take over from Labor's Alan Carpenter as the state's new premier, ending a week of political gridlock after a Sept. 6 poll failed to produce a clear winner. Nationals' leader Brendon Grylls said yesterday his party would form a coalition government with the Liberals after using his party's four seats as a bargaining chip for plans to divert more mining royalties to local communities.

Western Australia has as much as 10 percent of the world's known uranium reserves, worth about A$40 billion ($32 billion), according to an estimate from the federal government last year. The Liberals want to open the state, which accounts for more than a third of the nation's exports, to uranium miners such as Cameco Corp., the world's biggest producer, and BHP Billiton Ltd.

``Projects are now going to be developed, which they couldn't before, and there will be a flurry of interest in the sector,'' said Gavin Wendt, senior resources analyst at Fat Prophets Funds Management in Sydney. ``Whilst they will be given the green light politically, they still have to be developed on sound economics.''

Labor, which said it would legislate its ban on uranium mining, had been in power in Western Australia since February 2001, with Carpenter taking the helm in January 2006. Barnett, who replaced Troy Buswell as party leader one day before the election was called, has said he would consider lifting the ban and introduce genetically modified crops.

Monopoly Broken

Carpenter, who became premier in January 2006, called the election five months before it was due, the earliest in Western Australia in 100 years. He resigned as party leader yesterday. Labor holds government in all seven other Australian states and territories and at the federal level.

National party members of the new government will reserve the right to vote against Liberal policy, while ministries headed by Nationals will be ``independent,'' Grylls told reporters in Perth yesterday.

``We're the Nationals, we're from the country, and I'd expect to be driving a hard deal every time I'm at the table,'' Grylls said. The Nationals sought the balance of power to push their Royalties for Regions agenda, which would see a quarter of royalty payments from mining projects invested in local, rural projects such as improvement to roads and new schools.

Dr. Peter Van Onselen, associate professor in political science at Perth's Edith Cowan University, said the Liberal/National arrangement may be volatile given Grylls' promise to be independent.

`Cobbled Together'

``The Liberal party's majority now is a cobbled together group of Liberals, Liberal independents and national MPs who can more rightly be termed agrarian socialists,'' he said. ``The ability for them to govern in a stable fashion is something we will only be able to see over time.''

The Liberals, in alliance with the Nationals, will be in charge of managing more than A$160 billion worth of investment projects planned for the state, which has 10 percent of Australia's population. Western Australia, about four times the size of France, produces 75 percent of the nation's gold and a third of the world's traded iron ore.

Australia, the world's second-largest uranium producer, gives states control of decisions about mining the metal, used as fuel in nuclear power plants. The nation's federal ruling Labor Party last year dropped its 25-year-old ban on new uranium mines, while letting state governments retain the power to reject proposals for new mines.

Western Australia has never mined uranium, mainly due to political and community opposition.

Three Mines

While Australia has almost 40 percent of the world's known low-cost uranium reserves, it supplies less than a quarter from mines in South Australia state and the Northern Territory.

``The premier's bewildering decision to outlaw uranium mining has produced a great deal of uncertainty in the uranium industry and disquiet in the wider resources industry,'' Michael Angwin, executive director of the Australian Uranium Association, said in a Sept. 2 statement.

Cameco, based in Saskatoon, Canada, in July agreed to buy a majority stake in the Kintyre exploration project in Western Australia from Rio Tinto Group for $346.5 million.

BHP Billiton's Yeelirrie resource and Toro Energy Ltd.'s Lake Way/Centipede project are probably the most advanced in the state. Uranex NL and Energy & Minerals Australia Ltd. have earlier-stage projects, according to analyst John Wilson at Sydney-based Resource Capital Research Pty.

To contact the reporter on this story: Robert Fenner in Melbourne rfenner@bloomberg.net; Jason Scott in Perth at Jscott14@bloomberg.net



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Keppel, Singapore Petroleum, SingTel: Singapore Equity Preview

By Simeon Bennett

Sept. 15 (Bloomberg) -- The following companies may have unusual price changes in Singapore trading. Stock symbols are in parentheses, and share prices are as of the last close.

Singapore's Straits Times Index advanced 1.2 percent to 2,570.67, paring last week's loss to 0.1 percent.

Hotel Royal Ltd. (HRY SP): The hotel owner and operator said Malaysia's Foreign Investment Committee approved the proposed acquisition of two hotels in Penang. Hotel Royal rose 5 cents, or 1.6 percent, to S$3.10.

Keppel Corp. (KEP SP): The world's largest builder of shallow-water oil rigs has won the rights to buy an incineration plant from the Singapore government after putting in a bid of S$462 million ($323 million) and will set up a trust for the facility, the company said in a statement yesterday. Keppel advanced 14 cents, or 1.7 percent, to S$8.64.

Singapore Petroleum Co. (SPC SP): The city-state's only publicly traded refiner and explorer cut fuel prices at its service stations by 5 Singapore cents per liter, it said in a Sept. 12 statement after the close of trading. Singapore Petroleum was unchanged at S$4.55.

Singapore Telecommunications Ltd. (ST SP): Southeast Asia's largest phone company said it will review a decision of the Indonesian Supreme Court to uphold a ruling that Temasek Holdings Pte. breached the nation's anti-monopoly laws before deciding its course of action. Temasek owns 54 percent of SingTel, which advanced 8 cents, or 2.4 percent, to S$3.36.

The court upheld a ruling Sept. 12 by the competition regulator, which said Temasek breached antitrust laws by using indirect stakes in PT Telekomunikasi Selular, known as Telkomsel, and PT Indosat to fix prices.

To contact the reporters on this story: Simeon Bennett in Singapore at sbennett9@bloomberg.net;



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Australian Stocks, U.S. Futures Tumble on Lehman Bankruptcy

By Chua Kong Ho and Chan Tien Hin

Sept. 15 (Bloomberg) -- Australian stocks and U.S. futures tumbled after Lehman Brothers Holdings Inc. prepared to file for bankruptcy as potential buyers abandoned talks.

Commonwealth Bank of Australia, the nation's largest lender, fell 3.2 percent and Macquarie Group Ltd., Australia's biggest investment bank, tumbled 7.3 percent on renewed concern more banks will fail, adding to $514 billion of credit-related losses. Barclays Plc and Bank of America Corp. abandoned talks to buy Lehman and Wall Street prepared for its possible liquidation.

Australia's S&P/ASX 200 Index slumped 69.20 points, or 1.4 percent, to 4,834.60 at 10:30 a.m. in Sydney. Stock markets in Japan, Korea, Hong Kong and China are closed for holidays today.

Standard & Poor's 500 Index futures expiring in December retreated 30.90, or 2.5 percent, to 1,227.60 in New York.

``The global credit crisis has permeated through all markets,'' said Jason Teh, who helps manage the equivalent of $5.7 billion at Investors Mutual Ltd. in Sydney. ``The real economy will feel the effects of this because it takes time for the banking system to restore itself.''

The MSCI World Index has lost 19 percent this year as the worst U.S. housing recession since the Great Depression caused the subprime debt market to collapse, widening credit spreads and weighing on global economic growth.

Lehman and its lawyers are getting ready to file for bankruptcy protection, said a person with direct knowledge of the firm's plans. A final decision still wasn't made, though none of the other options being considered appear to have much standing, the person said, declining to be identified because the discussions haven't been made public.

Commonwealth Bank lost 3.2 percent to A$41.61, while Macquarie Group fell 7.3 percent to A$40.80.

To contact the reporter on this story: Chua Kong Ho in Shanghai at kchua6@bloomberg.net

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Etihad of Abu Dhabi Says `No Firms Talks' Planned for Merger

By Glen Carey

Sept. 14 (Bloomberg) -- Etihad Airways, the national carrier of the United Arab Emirates, has ``no firm talks'' planned to partner another carrier after media reports said the airline opened discussions on a merger with BMI of the U.K.

``Etihad Airways, which has a commercial mandate to break even by 2010 and which is the focus within our business, has no firm talks planned with any airline or any proposals in the pipeline with any new possible partner,'' the Abu Dhabi-based airline's spokesman Thomas Clarke said today in an e-mailed statement.

Etihad has opened discussions on a merger with BMI that may value the U.K. airline at as much as 600 million pounds ($1.1 billion), the Sunday Times reported today, citing unidentified people in the Persian Gulf familiar with the situation.

Buying BMI, which owns 11 percent of the take-off and landing slots at Heathrow, would give Etihad the second- strongest position at the London airport, the newspaper said.

To contact the reporter on this story: Glen Carey in Dubai at gcarey8@bloomberg.net.



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Istithmar Suspends Vice Chairman, CFO Amid Embezzlement Probe

By Glen Carey

Sept. 14 (Bloomberg) -- Istithmar World, the Dubai investment company that manages more than $10 billion, suspended its vice chairman and chief financial officer after Dubai police detained them last month for alleged embezzlement at their previous jobs.

``Istithmar World confirms that Adel Al Shirawi has been suspended from the position of vice chairman of Istithmar World and Feras Kalthoum has been suspended from the position of chief financial officer of Istithmar World,'' the company said today in an e-mailed statement.

Al Shirawi, a national of the United Arab Emirates, is being investigated for alleged embezzlement and mistrust while employed as the chief executive of Tamweel PJSC, the U.A.E.'s biggest mortgage provider, Saleh Hamed, head of Bur Dubai police, said Aug. 14. Kalthoum, who was also detained on embezzlement charges, was Tamweel's former head of investments.

Al Shirawi has also been removed as a board director of Istithmar World, according to the statement.

To contact the reporter on this story: Glen Carey in Dubai at gcarey8@bloomberg.net.



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Dubai Group Acquires 20% Stake in Mazaya's Saudi Property Unit

By Ayesha Daya

Sept. 14 (Bloomberg) -- Dubai Group, which manages more than $40 billion on behalf of Dubai's ruler, paid 500 million dirhams ($136 million) for a 20 percent stake in the Saudi Arabian property unit of Al Mazaya Holding Co.

Dubai Group became a founding shareholder of Mazaya Saudi for Commercial Investment Co. after completing the transaction through its unit Dubai Capital Group, the company said today in an e-mailed statement. Mazaya Saudi has a paid up capital of 2.45 billion dirhams.

To contact the reporter on this story: Ayesha Daya in Dubai adaya1@bloomberg.net



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Qtel Second-Quarter Net Rises 59% on New Customers

By Haris Anwar and Arif Sharif

Sept. 14 (Bloomberg) -- Qatar Telecom QSC, which provides phone services in 16 countries, said second-quarter profit surged 59 percent as it added customers in Iraq, Oman and Algeria, while performance in its home market was ``solid.''

Net income increased to 654.5 million riyals ($180 million), or 5.95 riyals a share, from 412.1 million riyals, or 3.75 riyals, in the year-earlier period, the company said today in an e-mailed statement. ING Bank NV analysts estimated profit would rise 28 percent in the quarter to 529 million riyals. Revenue surged 78 percent to 4.56 billion riyals.

Phone companies in the Persian Gulf are expanding abroad to boost sales as domestic markets mature and competition grows. Qtel bought 41 percent of PT Indosat, Indonesia's second-biggest mobile phone operator, in June for $1.8 billion.

``The addition of Indosat to the group means that Qtel now has an international consolidated customer base of over 51 million,'' Mohammed Bin Saud Al-Thani, chairman of Qtel, said. ``From the third-quarter onward, Indosat's share of contribution to the group's revenue will be significant.''

Acquisitions

Last year, Qtel agreed to pay $3.72 billion for a 51 percent stake in Kuwait's National Mobile Telecommunications Co. KSC, or Wataniya Telecom. That helped it add operations in Kuwait, Tunisia, Algeria, Saudi Arabia and the Maldives.

From the second-quarter, Qtel added earnings of Iraq's Asia Cell for Communication LLC, of which it owns 30 percent. AsiaCell's Iraq operations contributed 15 percent of its revenue in the first-half.

Qtel said it recorded an EBITDA, or operating profit margin, of 49 percent in the second quarter compared with 50 percent a year earlier. EBITDA is earnings before interest, tax, depreciation and amortization.

Qatar, Qtel's home market, contributed 32 percent of its revenue in the first half and grew 21 percent, with the number of mobile subscribers increasing to 1.4 million, it said.

Qtel shares fell 1.9 percent to 155 riyals on the Doha Securities Market at 10:45 a.m. local time, valuing the company at 22.7 billion riyals. The shares have dropped 20 percent this year.

To contact the reporter on this story: Haris Anwar in Dubai on Hanwar2@bloomberg.netArif Sharif in Dubai at asharif2@bloomberg.net



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Qatar Telecom Says Wins Challenge to Ownership of Indosat Stake

By Arif Sharif

Sept. 14 (Bloomberg) -- Qatar Telecom QSC, which paid $1.8 billion in June to buy a 40.8 percent stake in Indonesia's PT Indosat, said the Indonesian Supreme Court had thrown out the legal challenge to its ownership of the stake.

``The Supreme Court's decision today removes the District Court's order, and allows us to keep the shares we acquired in June'' in Indonesia's second-biggest mobile phone operator, Qtel Chairman Sheikh Abdullah bin Mohammed Bin Saud Al-Thani, said in a statement posted on the Doha bourse Web site today.

Qatar Telecom is in the process of starting a tender to buy more Indosat shares, the statement added.

To contact the reporter on this story: Arif Sharif in Dubai at asharif2@bloomberg.net



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Persian Gulf Shares Drop, Led by Financials; DIB, Aldar Retreat

By Glen Carey

Sept. 14 (Bloomberg) -- Persian Gulf shares declined, led by banks and real-estate companies as international investors exited the region's markets.

Dubai Islamic Bank PJSC dropped to the lowest since April 2007, while Abu Dhabi Commercial Bank PJSC fell after it announced the appointment of a new chairman. Aldar Properties PJSC dropped the most in a week. Qatar Telecom QSC slumped to a 2004 low as it said it is seeking more shares in Indoesia's PT Indosat after the Asian country's Supreme Court threw out a legal challenge.

The Dubai Financial Market General Index fell for the third day, losing 3.2 percent to 4,122.34 at 1:37 p.m. local time, heading for its lowest close since August 2007. The Abu Dhabi Securities Exchange General Index lost 1.9 percent to 3,956.51. Qatar's Doha Securities Market Index dropped the most since Jan. 22, retreating 6.2 percent.

``We are still seeing large selling pressure on the market by international investors,'' Nadim Abou Jalad, a trader at Naeem Shares & Bonds in Dubai, said in a telephone interview. ``There is a lot of bad news about the real-estate sector, including all the corruption cases.''

Foreign investors were net sellers of 715 million dirhams ($194.8 million) of securities in the week ended Sept. 11 on the Dubai Financial Market, the bourse said yesterday.

Dubai Islamic

Morgan Stanley in August forecast a decline in Dubai real- estate prices. Dubai Islamic Bank, Tamweel PJSC, the United Arab Emirate's second-biggest mortgage lender by market value, and Deyaar Development PJSC, a real-estate company, have former employees under investigation by authorities for embezzlement.

Dubai Islamic Bank fell 7.8 percent to 5.9 dirhams, bringing the four-day slump to 15 percent. The bank said Sept. 11 that it had taken over land belonging to Plantation Projects to recover funds it lent to the company.

Tamweel dropped a sixth day, retreating 5.6 percent to 4.42 dirhams, and Deyaar lost 5.5 percent to 1.55 dirhams. Aldar, Abu Dhabi's biggest developer, lost 7.6 percent to 7.2 dirhams.

Abu Dhabi Commercial Bank tumbled 9.6 percent to 3.5 dirhams. The third-biggest bank in the U.A.E. appointed Eissa al-Suwaidi chairman, replacing Saeed al-Hajeri.

Qatar Telecom QSC slumped 7.5 percent to 146.2 riyals, its lowest close since June 2004. The company, which paid $1.8 billion in June to buy a 40.8 percent stake in PT Indosat, said the Indonesian Supreme Court had thrown out the legal challenge to its ownership of the stake. Qatar Telecom is in the process of starting a tender to buy more Indosat shares.

Al Mazaya Holding Co. fell 5 percent to 760 fils. The Kuwait property developer sold a 20 percent stake in its Saudi Arabian real-estate unit to Dubai Group.

Oman's Muscat Securities Market 30 Index decreased 0.2 percent. The Kuwait Stock Exchange Index lost 2.1 percent. Saudi Arabia's Tadawul All-Share Index dropped 2.8 percent, while the Bahrain All Share Index retreated 2.3 percent.

To contact the reporter on this story: Glen Carey in Dubai at gcarey8@bloomberg.net.



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Indian Police Question Blast Suspects, Put Toll at 20

By Jay Shankar and Sumit Sharma

Sept. 14 (Bloomberg) -- Indian police are questioning several people suspected of involvement in yesterday's blasts in the capital New Delhi that killed at least 20 and injured 98, the worst terrorist attack in the country since 50 were killed in the city of Ahmedabad in July.

``We have some vital clues and hope to solve the case very soon,'' police spokesman Rajan Bhagat said in a telephone interview from New Delhi. ``The police are questioning several suspects and no arrests have been made so far.''

Indian Mujahideen, which had claimed responsibility for recent terrorist attacks in the states of Gujarat and Rajasthan, said it was behind the blasts, in an e-mail that was sent to several news organizations.

The police also defused three bombs late yesterday, Bhagat said. ``Two bombs were defused in the Connaught Place area and another one near India Gate.''

The attacks take the toll of people killed in India in terrorist attacks in the past year to more than 200. Terrorists have placed bombs on bicycles, under theater seats and near markets, timing them to go off during the evening rush hour.

The home ministry yesterday asked all states and union territories to step up security.

Mumbai, the commercial hub of the country and capital of Maharashtra state, is on high alert for today's ritual immersion of idols of the elephant god Ganesha, also known as Ganpati, the Times of India said. Three telephone bomb threat calls were received, warning of blasts in the city today, the paper reported, citing R.R. Patil, state deputy chief minister.

Mumbai Immersion Ceremony

Traffic is traditionally halted in the city as people take to the streets in processions to seaside immersion sites. The 10-day-long festivities culminate in the main immersion ceremony at Chowpatty beach on the city's Marine Drive. Similar immersions will take place elsewhere in India as well.

Home MinisterShivraj Patil, who said the five blasts took place within 45 minutes, starting at about 6 p.m. yesterday, condemned the attacks. ``I am confident that security agencies will soon be able to get to the bottom of these incidents and the culprits brought to book.''

Two of the blasts took place in the central Connaught Place area and two at a market in the upscale Greater Kailash area, Delhi Police chief Y.S. Dadwal said. One blast took place at Ghaffar Market in the Karol Bagh area, he said.

Bomb Material

``I am not in a position right now to give you the exact details of the nature of the bombs used in the blasts,'' Bhagat said. ``We may issue a statement later today on that.''

Preliminary investigations indicated ammonium nitrate was used in the bombs, the Hindustan Times reported.

The Indian Mujahideen e-mail originated from Mumbai and may have been sent from a hacked wireless Internet account, the CNN- IBN television channel reported. Previous e-mails sent by the group haven't been traced.

Police personnel were conducting investigations at some of the blast sites today, while the usually busy Karol Bagh market area was cordoned off, creating traffic jams along one of the capital's busiest thoroughfares.

The attacks come about three years after 59 people were killed and 224 injured in New Delhi when three explosions took place in two crowded markets and on a public bus. The blasts of Oct. 29, 2005, took place as people shopped for the main Hindu festival of Diwali and the Muslim festival of Eid.

Festival Season

Yesterday's bomb attack happened at a time when India is preparing for next month's festival season, which includes Diwali, the country's biggest, and mid-way through the Muslim holy month of Ramadan, which started at the beginning of September.

President Pratibha Patil, Prime MinisterManmohan Singh and Sonia Gandhi, president of the ruling Congress party, all condemned the attacks.

U.S. Ambassador to India David C. Mulford extended his government's sympathies to the victims and their families.

The government has previously blamed terrorist attacks on organizations linked to foreign powers, without offering evidence or making arrests. Local media often blame the attacks on groups backed by Pakistan or Bangladesh, without identifying the security officials who provided the information.

Sixteen bombs exploded in Ahmedabad within 20 minutes late on July 26, a day after seven bombs tore through India's technology hub of Bangalore, killing two. At least 20 devices hidden in cars and garbage cans were discovered and defused in the Gujarat city of Surat, days after the Ahmedabad blasts.

Indian Mujahideen had claimed responsibility for the Ahmedabad and Jaipur blasts and threatened more attacks. The group has claimed previously that the attack was in revenge for violence in Gujarat between Hindus and Muslims in 2002, in which almost 2,000 people were killed.

To contact the reporters on this story: Jay Shankar in Bangalore at jshankar1@bloomberg.net; Sumit Sharma in Mumbai at sumitsharma@bloomberg.net.



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Emaar Drops to Three-Year Low as Investors Doubt Share Buyback

By Matthew Brown and Glen Carey

Sept. 14 (Bloomberg) -- Emaar Properties PJSC dropped to the lowest since April 2005 as investors doubted the Middle East's largest real-estate developer will follow through with a plan to buy back 10 percent of its shares.

``The market doesn't seem convinced that Emaar will complete the 10 percent share buyback,'' Ali Khan, head of equity trading at Arqaam Capital Ltd. in Dubai, said in a telephone interview.

Emaar lost 3 percent to close at 7.34 dirhams. The shares earlier surged as much as 6.1 percent.

The Dubai-based company yesterday said it plans to begin the buyback from the beginning of October because the shares, down more than 50 percent this year, are undervalued. Emaar received regulatory approval in December to buy back 10 percent of its stock. In the United Arab Emirates companies have one year to complete buybacks once they have been approved, giving Emaar a little more than three months to purchase the shares.

Emaar bought only around 3 percent of its stock after announcing in May 2006 that it planned to buyback 10 percent, said Zahed Chowdhury, head of research for Deutsche Bank AG in the Middle East, in a telephone interview from Dubai.

``They have announced the intention to buyback shares; if they don't go ahead with it, then it's not going to be seen positively by the market,'' said Chowdhury. He has a ``buy'' recommendation on the shares and a price estimate of 16.50 dirhams.

The Dubai Financial Market Real Estate Index has fallen 45 percent this year on concern that property growth in the emirate may slow and after arrests at some of Dubai's largest property companies, including Deyaar Development PJSC and Tamweel PJSC, the U.A.E.'s second-largest home finance provider. Emaar has not been implicated in any of the investigations.

To contact the reporter on this story: Matthew Brown in Dubai at mbrown42@bloomberg.net; Glen Carey in Dubai at gcarey8@bloomberg.net.



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World War II Spitfire Sells for $1.9 Million in New Zealand

By Gavin Evans

Sept. 14 (Bloomberg) -- A World War II Spitfire fighter, one of fewer than 60 still flying worldwide, sold for NZ$2.8 million ($1.9 million) at an auction in Nelson, New Zealand today.

The aircraft, a 1945 Mk. XVI variant of the fighter made famous during the Battle of Britain, was bought by North China Shipping Holdings Co. Chairman Yan-Ming Gao at the sale at Nelson's museum of Wearable Art & Classic Cars. He plans to donate the fighter to the China Aviation Museum in Beijing.

Demand from collectors keen to own a flying piece of aviation history is sustaining a global industry of amateur archeologists and engineers scouring museums and crash sites for parts to restore and include in rebuilt planes. Provenance Fighter Sales, a specialist aircraft broker based in Murietta, California, sold 13 aircraft in 2007, including three Spitfires.

``I don't want to see the Spitfire go,'' Don Subritzky, an Auckland engineer whose family has restored the aircraft the past 11 years, said before the sale. ``Basically, we need to get some money in to fund the completion of a few of the other aircraft we've got here.''

Subritzky has nearly completed a 1936 Hawker Hind biplane. Other airframes waiting to be restored include a rare Vickers Vildebeest biplane, a twin-engined Airspeed Oxford and a Gloster Meteor jet.

The Spitfire sold today started life with Britain's Royal Air Force in June, 1945. After postwar service with the nation's air force reserve it was donated to the U.S. Air Force Museum at Dayton, Ohio. It was sold to private collectors in 1996.

`Spitfires in Particular'

``Spitfires are a very well-known fighter of the Second World War,'' said Gao, who has an interest in military history. ``It made a great contribution to the winning of the Second World War,'' he said through an interpreter.

The plane was the main attraction among 15 vintage and racing cars offered by Bonhams & Goodman, the Australian unit of London-based Bonhams. It is believed to be the first Spitfire sold at auction since the 1960s, Bonhams & Goodman Chief Executive Officer Tim Goodman said.

``Warbirds in general and Spitfires in particular only ever seem to go up in value,'' said Steve Vizard, managing director of U.K.-based Airframe Assemblies Ltd., which is currently restoring six Spitfires. ``Despite the so-called global economic crisis and the credit crunch and all that, it would seem that people who can afford to have this as their hobby, or their passion, can still afford them.''

Rebuilding a Spitfire, regardless of condition, takes about three years and costs about 1 million pounds ($1.8 million), Vizard said. Once flying, a later mark would typically sell for about $3.5 million, while an early model, with proven history in the Battle of Britain, might fetch twice as much, he said.

Including commission, Gao will pay just under NZ$3.2 million for the aircraft. He also bought a 1914 Daimler Tourer, a 1930 Rolls Royce Sedanca De Ville, and a 1898 De Dion Bouton today.

To contact the reporter on this story: Gavin Evans in Wellington at gavinevans@bloomberg.net



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Liberal Party Wins Government in Western Australia

By Robert Fenner

Sept. 14 (Bloomberg) -- Colin Barnett will become the next premier of Western Australia after his Liberal Party won National Party support for a coalition government, opening the way for uranium mining and genetically modified crops in the state.

The National Party received ``very good'' proposals from the Liberals and incumbent Labor Party before making its decision, Nationals Leader Brendon Grylls told reporters in Perth today. The Liberals won 24 seats in the 59-seat lower house and will form a government with the support of four Nationals and two independent members, ending a week of uncertainty after the Sept. 6 poll left no party with a majority.

Barnett, who promised to open up uranium mines and allow genetically modified crops, will head a state that accounts for a third of the nation's exports with 10 percent of its population.

``Those key policies of uranium and genetically modified crops will come through very quickly,'' said Peter Van Onselen, associate professor in political science at Perth's Edith Cowan University. ``Between them they also control the upper house.''

Nationals lawmakers will reserve the right to vote against government policy, unlike traditional Liberal-National coalition governments which present united policies.

``We took this very seriously,'' Grylls said today. ``We are not prepared to go into a traditional coalition, so we'll be accepting ministries based on being independent ministers.''

Current Premier Alan Carpenter called the election on Aug. 6, two days after Barnett's predecessor Troy Buswell quit as leader after admitting he snapped a staffer's bra strap and sniffed the chair of a female colleague. Labor had promised to maintain its ban on uranium in a state that holds as much as 10 percent of the world's reserves. Carpenter today resigned as Labor leader.

Monopoly Broken

Carpenter, who became premier in January 2006, called the election five months before it was due, the earliest in Western Australia in 100 years. Labor has been in power in the state since February 2001 and forms government in all states and territories, as well as at the federal level.

Barnett, who led the Liberals to defeat in 2005, was set to retire from politics before replacing Buswell as party leader.

The Liberal Party has said it will increase mining royalties if BHP Billiton Ltd.'s hostile takeover bid for smaller rival Rio Tinto Group succeeds. The Liberals want to introduce trials of genetically-modified cotton and canola in the state and overturn a band on uranium mining.

Barnett's minority government will be the first in Western Australian history and the nation's first since Nick Greiner needed the support of independent lawmakers in 1991 to retain power in New South Wales, Australia's most populous state.

The Nationals, who gain most of their electoral support from rural and regional areas, are seeking to use their numbers in the lower house to push their ``Royalties for Regions'' agenda. The plan would see a quarter of royalty payments from mining projects invested in local, rural projects such as improvement to roads and new schools.

``We're the Nationals, we're from the country, and I'd expect to be driving a hard deal every time I'm at the table,'' Grylls said.

To contact the reporter on this story: Robert Fenner in Melbourne rfenner@bloomberg.net



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Prices Probably Decrease as Growth Slows: U.S. Economy Preview

By Timothy R. Homan

Sept. 14 (Bloomberg) -- Americans paid less for goods and services in August, manufacturing slumped and homebuilding sank deeper into a recession, signaling slower growth is taming inflation, economists said before reports this week.

Consumer prices probably fell 0.1 percent last month, the first drop since October 2005, according to the median estimate in a Bloomberg News survey. Builders broke ground on the fewest houses in 17 years and industrial production fell, other reports are also projected to show.

Some companies are cutting prices to revive demand as mounting job losses and the collapse in credit and home values cause consumers to retrench. At their meeting this week, Federal Reserve policy makers may signal that the benchmark interest rate will remain at 2 percent in coming months as the threat of inflation recedes and the economy weakens.

``Slowing growth helps put a cap on commodity and energy prices, so price pressures are likely to decelerate,'' said Maxwell Clarke, chief U.S. economist at IDEAGlobal Inc. in New York. ``It allows the Fed to put fears of inflation on the back burner. Growth will become the greater concern.''

The Labor Department's report on consumer prices is due Sept. 16. The retreat in energy prices and discounts by automakers and retailers to clear out unwanted stockpiles probably restrained the cost of living last month, economists said.

The average price of gasoline fell 7.8 percent last month compared with July, according to AAA.

Core prices, which exclude food and energy, rose 0.2 percent last month after a 0.3 percent gain, according to the survey median.

Sales Drop

Sales at U.S. retailers dropped in August for a second straight month and July inventories at American businesses increased the most in four years, Commerce Department reports showed last week.

J.C. Penney Co. and American Eagle Outfitters Inc. promoted discounts on clothes to attract more shoppers during August to counter what may be the worst back-to-school season in seven years.

General Motors Corp. offered all customers the same prices paid by employees, helping boost sales in the second half of the month. GM this month said it will extend the incentive through September and has offered 72-month, no-interest financing on some vehicles since late June.

Less Construction

The worst housing recession in a quarter-century is also weighing on consumers. New-home starts in August dropped to a 950,000 annual pace, the lowest level since March 1991, the Commerce Department is forecast to report Sept. 17.

Builders scaled back to offset a record number of foreclosures that added to an inventory glut, economists said. Starts have fallen 30 percent in the past year.

Confidence among homebuilders this month probably edged up from August's 23-year low, economists said before the release of the National Association of Home Builders/Wells Fargo index, set for Sept. 16. The measure dates back to 1985.

Production at factories, mines and utilities dropped 0.3 percent in August following a 0.2 percent gain in July, economists forecast a Fed report tomorrow will show. Automakers probably led the decline as sales over the last three months plunged to the lowest level since 1993.

A report from the New York Fed the same day may show manufacturing in that state grew at a slower pace this month as domestic demand weakened and economies in Europe and Japan faltered. A similar report from the Philadelphia Fed on Sept. 18 may show regional activity shrank for a 10th straight month.

Negative Signal

A closely watched gauge of the economy's course dropped in August for a third straight month, economists project a report on Sept. 18 will show. The New York-based Conference Board's index of leading economic indicators probably fell 0.2 percent after decreasing 0.7 percent in July.

The Fed last month kept the benchmark U.S. interest rate at 2 percent for a second consecutive meeting. There is a one-in- four chance the central bank will lower the borrowing cost by its Oct. 29 meeting, according to futures trading. The odds of a cut improve to about 40 percent by their last meeting of the year on Dec. 16.

``The inflation outlook is now much less of a concern,'' said Paul Ashworth, international economist at Capital Economics Ltd. in London. At the same time, ``the weakness in the real economy is intensifying.''

                        Bloomberg Survey

================================================================
                       Release    Period    Prior     Median
Indicator                 Date               Value    Forecast
================================================================
Empire Manu. Index        9/15     Sept.      2.8       1.0
Ind. Prod. MOM%           9/15      Aug.      0.2%     -0.3%
Cap. Util. %              9/15      Aug.     79.9%     79.6%
CPI  MOM%                 9/16      Aug.      0.8%     -0.1%
Core CPI MOM%             9/16      Aug.      0.3%      0.2%
CPI  YOY%                 9/16      Aug.      5.6%      5.5%
Core CPI YOY%             9/16      Aug.      2.5%      2.6%
Core CPI SA Index         9/16      Aug.    216.230     n/a
CPI NSA Index             9/16      Aug.    219.964   219.340
Net Long Term TICS $ Bl   9/16      July      53.4      55.0
Total TICS $ Blns         9/16      July      51.1      40.0
NAHB Housing Index        9/16     Sept.       16        17
ABC Conf Index            9/16    Sept. 15    -47       -43
Housing Starts ,000's     9/17      Aug.      965       950
Building Permits ,000's   9/17      Aug.      937       925
Current Account $ Blns    9/17       2Q      -176.4    -180.0
Initial Claims ,000's     9/18    Sept. 6     445       440
Cont. Claims ,000's       9/18    Aug. 30     3525      3528
Philly Fed Index          9/18     Sept.     -12.7     -10.0
LEI  MOM%                 9/18      Aug.     -0.7%     -0.2%
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To contact the reporter on this story: Timothy R. Homan in Washington at thoman1@bloomberg.net

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Hurricane Ike's Toll in Texas May Cost Insurers $18 Billion

By Erik Holm

Sept. 14 (Bloomberg) -- Hurricane Ike, the storm that came ashore in Texas yesterday, may cost insurers $6 billion to $18 billion, according to firms that specialize in gauging the effects of disasters.

The highest estimate came from Oakland, California-based Eqecat Inc. as Ike drove the Gulf of Mexico's waters into Galveston Island, blew out office windows and left at least 4.5 million people around Houston without power. AIR Worldwide, based in Boston, said Ike may have caused as much as $12 billion of insured losses on land, with a likely loss of $10 billion. Offshore losses may range from $600 million to $1.5 billion and probably totaled $1 billion, AIR said.

AIR and Eqecat agreed that $8 billion was the minimum toll, making Ike at least the fourth most-expensive storm in U.S. history. Ike was the first hurricane to hit a major U.S. metropolitan area since Katrina devastated New Orleans in 2005, costing insurers $41.1 billion. Ike made landfall in Galveston with winds as high as 110 miles an hour (175 kilometers an hour).

``The damage won't be confined to the coast,'' Peter Dailey, director of atmospheric science at AIR, said in an interview. ``Damage from hurricane-force winds will extend well inland, maybe as much as 200 miles.''

A third firm, Risk Management Solutions Inc. of Newark, California, said total insured damage on land and offshore ranged from $6 billion to $16 billion.

Early damage reports indicated that several buildings lining Galveston's seawall were destroyed, and unchecked fires were burning in that city, AIR said. President George W. Bush cleared the way for Texas to receive federal disaster aid.

Storm Surge

Ike had been downgraded to a tropical storm at 1 p.m. local time, as sustained winds decreased to about 60 mph, the National Hurricane Center said.

The storm was strengthening until the moment it reached shore and rivaled Katrina in size, if not intensity, said Tom Larsen, a senior vice president at Eqecat.

Ike's width ``is a big part of why we think the damage will be what it is,'' Larsen said. The storm was blowing as high as 125 miles from the storm's center, leaving property ``exposed to hurricane-force winds for hours and hours as the storm passes over,'' he said.

Flagstone Reinsurance Holdings Ltd., the Bermuda-based insurer, predicted damage of $10 billion to $16 billion industrywide. Deloitte Touche Tohmatsu said earlier this week that the storm might cost $25 billion, an estimate that the firm's Lis Gibson repeated after Ike hit.

String of Storms

``It stayed on course and pretty much made landfall where it was expected,'' she said. ``It's hard to know an exact number, but it's certainly in that order of magnitude. It's a big loss. There's a significant amount of property that was hit by the storm.''

Ike follows Hurricane Gustav, which struck Louisiana on Sept. 1, and Hanna, the tropical storm that made its way up the Eastern seaboard on Sept. 6. The storms may reduce profits for insurers, including Allstate Corp. and Travelers Cos., which benefited from calmer weather in 2007 and 2006 after Katrina contributed to a record storm season in 2005.

The spate of natural disasters is testing insurers' efforts to limit losses after the 2005 season. Companies bought added protection from reinsurers, sought price increases from regulators and reduced the amount of coverage in catastrophe- prone regions to reduce their potential claims from the next big storm.

`Pretty Scary'

In Texas, Allstate stopped offering residential coverage for windstorm damage to new customers in 14 counties that face the Gulf of Mexico, passing that part of the policies to a state-run pool. It also instituted a new deductible of at least 2 percent of an insured house's value that new customers must pay before coverage kicks in after a hurricane.

Allstate, the largest publicly traded U.S. home and auto insurer, also sold $250 million in catastrophe bonds to fixed- income investors who bet against the occurrence of natural disasters in the state.

George Ruebenson, the head of Northbrook, Illinois-based Allstate's home and auto units, told investors in New York this week that Ike appeared to be ``pretty scary'' as it approached the Gulf of Mexico. He made no estimate of potential damages.

Data on insured losses understate actual damage because the figures don't include uninsured property or destruction caused by actions excluded from some policies, such as residential flooding.

To contact the reporter on this story: Erik Holm in New York at eholm2@bloomberg.net.



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Asahi Glass Will Further Cut North America Output, Nikkei Says

By Masaki Kondo

Sept. 14 (Bloomberg) -- Asahi Glass Co. will trim production in North America by 25 percent in October as car sales slow, the Nikkei newspaper reported.

Asahi Glass, which earlier cut North American output by 10 percent, plans to hold production at the lower level through the end of this year, Nikkei reported today, without saying where it obtained the information. The company has plants in Kentucky and Ohio with capacity to turn out glass for 4 million cars annually, the newspaper said.

Tokyo-based Asahi Glass sells two-thirds of its auto glass made in North America to Japanese car manufacturers, with the rest going to U.S. automakers including General Motors Corp., the report said.

A telephone call to Asahi Glass wasn't answered.

To contact the reporters on this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net



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