Japan bucks unnecessary testing of food exports www.bworldonline.com JAPAN HAS CALLED on trade partners including the Philippines to abide by trade rules amid fears of radiation-contaminated shipments from the disaster-hit nation. An official of the Japanese embassy, in particular, expressed concern over a testing requirement recently imposed by Manila on fish and fishery products imported from Japan. Shinsuke Shimizu, head of chancery at the embassy, told BusinessWorld last Friday that instead of requiring tests which are "not necessary and impossible", a fair measure would be to ask for a certificate of origin. "If they keep on doing this, imports have to be stopped." Mr. Shimizu said. Japan continues to struggle to stabilize the damaged Fukushima nuclear plant, which has released unknown amounts of radioactive material into the environment. One particular concern is the leak of highly radioactive water into the sea near the plant. Last month, the Bureau of Fisheries and Aquatic Resources (BFAR) required samples of fish and fishery products not certified by Japanese authorities as radiation-free to undergo tests at the Philippine Nuclear Research Institute (PNRI). "[A] better [measure is a] certificate of origin instead of radiation test," Mr. Shimizu said, noting that this approach was requested by the European Union. A government agency, however, insisted that the test was necessary. "The place of storage in Japan prior to shipment mentioned as origin may be different from fishing grounds. It’s safer to have a PNRI test," BFAR director Malcolm I. Sarmiento, Jr. said in a text message last Friday. "In the absence of a certification from Japanese authorities that it (a shipment) is radioactive free then samples must be sent to the PNRI for testing and upon negative findings [the goods] can be released," he added. A World Trade Organization (WTO) spokesman said international agreements allow governments to restrict imports deemed unsafe, and that Japan had also asked that the disaster’s dangers not be overblown. "Here at the WTO, Japanese officials have urged their trading partners... not to exaggerate the dangers and thus use the catastrophe in Japan as a pretext for employing protectionist measures," said Keith Rockwell, director of the WTO Information and External Relations Division. "It is true that in the past, governments have employed measures to restrict imports on safety grounds and later had those measures overturned by the WTO’s Dispute Settlement Body...," he added. Despite the trade concerns, Mr. Shimizu said Japan would not seek concessions when the Japan-Philippines Economic Partnership Agreement is reviewed later this year. -- A. M. G. Roa By Doris Dumlao In a roundtable forum with the Inquirer business staff, Tourism Secretary Alberto Lim said Intramuros would be spruced up to better showcase the country’s cultural heritage. The DoT also plans to attract retail businesses over the next two years and to redevelop some areas into a mixed-use commercial and residential hub over a five-year period using financial muscle from the private sector. Lim said a feasibility study would be undertaken soon and the government might bid out the Intramuros redevelopment project under the PPP framework by early 2012. The DOT is making a timely move to draw in a private sector participation for this major project given the huge interest among the country’s biggest property developers like Ayala Land, SM of taipan Henry Sy, JG Summit of the Gokongweis and Alliance Global of tycoon Andrew Tan on tourism-oriented real estate. As part of the redevelopment, Lim said Intramuros’ Maestranza Wall, used as a shipping warehouse during the Spanish occupation, would be fixed using a P250-million grant from Japan’s official development assistance arm Japan International Cooperation Agency. This stretch of wall lies near the mouth of Pasig river on its southern bank. “We will make it look like what they have as store fronts in Clarke Quay,” Lim said, referring to a historic riverside quay in Singapore that now houses a bustling pedestrian retail row. The redevelopment shall also include the rebuilding of the San Ignacio Church, which is currently in ruins. “It will become the Museum of Intramuros, where we will put the Ecclessiastical art collected by Jimmy Laya (governor of the Marcos-era central bank). This refers to art produced during an era in the Middle Ages in which the influence of the Church was practically paramount. |
Investors focus on earnings and oil NEW YORK (CNNMoney) -- This week, corporate earnings return to the forefront. Earnings season kicks off Monday afternoon with results from Alcoa (AA, Fortune 500) and later this week, investors will get results from Google (GOOG, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and Bank of America (BAC, Fortune 500) among others.
Investors head into one of the most highly-anticipated earnings seasons in years. A weak jobs picture and surging commodity prices have made investors nervous. Profit margins are also beginning to get squeezed after several quarters or rising profitability. Fred Dickson, chief market strategist with D.A. Davidson & Co., said the earnings conference calls -- when executives typically talk about the future -- may be even more important than the actual results. "While we expect a fairly good earnings season, the company guidance is going to be key, partially with how commodities have been performing," said Dickson.
Stocks ended last week mostly lower following the surge in commodity prices. Opinions on what oil prices mean for stocks are mixed. Dickson said high oil prices may negatively impact both corporate earnings and consumer spending later this year, while others feel high oil prices could help the stock market in the long run because it means the Federal Reserve will continue to keep rates near zero. "Oil's drag on the economy keeps the Fed from raising short term interest rates," said Bill Vogel, senior analyst with Merlin Securities. On the Docket Monday - Aluminum producer Alcoa will release its first quarter results after the closing bell on Monday. Analysts surveyed by Briefing.com expect the Dow component to report a profit of 27 cents a share, up from 10 cents a share last year. Tuesday - The Commerce Department is scheduled to release the U.S. trade balance for February at 8:30 a.m. ET. China reported a small surplus for March, but a more than $1 billion trade deficit for the first quarter on Sunday. The Federal Reserve will release its Beige Book at 2 p.m. on Tuesday. The report is a collection of the anecdotal observations about the state of the U.S. economy by the Federal Reserve's 12 regional banks.
Investors will get the government's March retail sales report at 8:30 a.m. ET, followed by the business inventories report for February at 10 a.m. ET. Economists are looking for March retail sales to rise 0.5% compared with the 1% rise in February. Business inventories are expected to increase 0.8%. Thursday -- The Labor Department is scheduled to release weekly initial jobless claims and the producer price index for March, both at 8:30 a.m. ET. Wall Street expects initial claims edged higher by 3,000 to 385,000 claims last week while producer prices rose 1% in March.
Friday -- Dow component Bank of America will report its earnings before the bell, with analysts expecting a profit of 28 cents a share. Other companies reporting on Friday include broker Charles Schwab (SCHW, Fortune 500) and toy maker Mattel (MAT, Fortune 500). In economic data, the Labor Department puts out its March consumer price index, one of the primary gauges of inflation. Economists expect March CPI to rise 0.5%. Also on Friday, investors will get the University of Michigan's consumer sentiment survey for April, industrial production and capacity utilizations figures from the Commerce Department, and the Empire State manufacturing index from the New York Federal Reserve. |
Oil Advances a Fourth Day in New York on Libyan Conflict, Mideast Unrest Oil advanced for a fourth day in New York as NATO escalated its air campaign over Libya and on concern unrest may spread to other energy-exporting countries in the Middle East. Futures rose as much as 0.6 percent today after warplanes from the North Atlantic Treaty Organization destroyed Libyan government tanks around the cities of Ajdabiya and Misrata. A Syrian army officer was killed after tanks were deployed to contain protests spreading across the country. Unrest has toppled leaders in Egypt and Tunisia and spread to Bahrain, Yemen and Oman. Crude oil for May delivery gained as much as 67 cents to $113.46 a barrel, in electronic trading on the New York Mercantile Exchange, and was at $113.33 at 8:19 a.m. Sydney time. The contract rose $2.49, or 2.3 percent, to $112.79 on April 8. Futures are 34 percent higher the past year. Brent oil for May settlement traded at $126.90 a barrel, up 25 cents, on the London-based ICE Futures Europe exchange. The contract increased $3.98, or 3.2 percent, to end the session at $126.65 on April 8. |
Sources: Bloomberg, Reuters, www.inquirer.net, www.philstar.com, www.bworldonline.com, www.cnnmoney.com
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