Russia to set new record with 8-billion-dollar arms sales in 2008

Russia already has several contracts ready to ship its military hardware to Venezuela, Saudi Arabia and several other countries. Alexander Fomin, the chairman of the Russian official delegation at Farnborough International Airshow, said that Russia was currently conducting defense cooperation talks with Saudi Arabia. The country is interested in buying Russian transport and battle choppers and air defense system
It was previously reported that Rosoboronexport, Russia’s major defense export corporation, was working on a four-billion-dollar contract with Saudi Arabia. The preliminary arrangement to purchase arms from Russia was achieved in November 2007 during Putin’s meeting with Saudi Crown Prince Sultan bin Abdel Aziz Al Saud in the Kremlin.

Russia also conducts active defense cooperation talks with Venezuela.

“We have several contracts with this country and we plan to sign more of them in the future,” Alexander Fomin said.

Russia also plans to deliver about 70 airborne radars Zhuk-ME for MiG-29 jet fighters of the Indian Air Force.

The Federal Defense Cooperation Service of the Russian Federation said that export shipments of Russian arms and military hardware in 2008 would set a new record for the country and bring the profit of over 8 billion dollars. Last year Russia sold arms in the sum of $7.4 billion. Aviation still takes the lead in the export shipments.

Oil prices rise as pipelines attacked in Nigeria

LONDON, United Kingdom -- Oil prices rose Monday as rebels said they had sabotaged two pipelines in Nigeria, which is a major exporter of crude.

Brent North Sea crude for September climbed 89 cents to $125.41 a barrel.

New York's main contract, light sweet crude for September delivery, advanced by 92 cents to $124.18 a barrel.

The Movement for the Emancipation of the Niger Delta (MEND) claimed Monday that it had sabotaged two Shell pipelines in Rivers state in southern Nigeria overnight.

In an email, it said "heavily armed" MEND fighters had attacked the pipelines at Kula and Rumuekpe operated by Shell Petroleum Development at 1:15 am (0015 GMT).

Contacted by AFP, two Shell spokesmen said the claim and the extent of damages were being verified.

Word of the sabotage came after the release on Saturday of eight foreign workers who had been kidnapped near a major oil export terminal in southern Nigeria with no ransom paid.

The oil-rich Niger Delta has seen numerous kidnappings targeting foreign energy firms, claimed by militants demanding a greater share of oil wealth for the region's inhabitants.

Violence in the southern region has reduced Nigeria's total oil production by a quarter since January 2006.

Nigeria was Africa's biggest oil producer until it was overtaken in April by Angola, according to Organization of Petroleum Exporting Countries figures

Shares close higher in thin trade on Wall Street rebound

MANILA, Philippines – (UPDATE) Shares closed higher Monday, buoyed by positive overseas leads such as Wall Street's rebound on Friday on better-than-expected economic data and oil futures trading below $124 a barrel.

But trading was subdued and turnover thin as investors continued to worry about inflation and the US economy.

"We don't expect to see serious buying in such a very volatile market. Investors are still waiting for the right time to get in," said Nestor Aguila, president of DA Market Securities.

The 30-company composite index closed up 28.09 points or 1.1 percent to 2,540.81. The all-share index rose 13.54 points or 0.9 percent to 1,594.43.

There were 47 advancers and 33 decliners, while 48 were unchanged.

Shares worth P1.7 billion changed hands, leaner than Friday's turnover of P1.9 billion.

Oil rose in Asian trade on Monday in a technical rebound from a seven-week low but remained below $124.

A barrel of US light crude for September delivery rose 46 cents to $123.72, after falling $2.23 on Friday to settle at $123.26 on the New York Mercantile Exchange.

The contract, which hit an all-time peak above $147 on July 11, fell to as low as $122.50 on Friday, the lowest since June 5.

US stocks rose Friday after the Commerce Department reported that orders sent to US factories for big-ticket manufactured goods such as cars, appliances and machinery grew 0.8 percent in June, the strongest gain in four months and well ahead of Wall Street's expectations.

Another Commerce Department report showed new US home sales dropped by a smaller-than-expected 0.6 percent.

The Dow Jones industrial average rose 21.41 or 0.19 percent to 11,370.69 Friday. It fell more than 280 points on Thursday.

Analysts said investors were also reluctant to make big moves ahead of the state-of-the-nation address by President Gloria Arroyo later in the day.

"Investors are not expecting any dramatic policy statements that would shake the market," said Jose Vistan Jr., research director at AB Capital Securities.

"However, if there are more subsidies for the poor, that would be bad for the market. Subsidies would eat up government resources, put pressure on its fiscal position, and it will affect a lot of sectors down the line," he said.

Index leader Philippine Long Distance Telephone Co. rose 1.6 percent to P2,495, tracking the hefty 4.4-percent gain by its American Depositary Receipts on Friday.

Recently battered banks rose led by Metropolitan Bank & Trust Co., which was up 4.4 percent at P36. Banco de Oro Unibank gained 2.6 percent to P40 and Bank of the Philippine Islands advanced 1.2 percent to P41.

Jollibee Foods Corp. fell 4.1 percent to P35.50 following recent gains. The nation's largest fast food chain operator said Monday its wholly owned subsidiary Jollibee Worldwide Pte. Ltd. has signed an agreement to acquire a 12-percent equity interest in US-based Chow Fun Holdings LLC for $950,000.

($1 = P44.00)