Weak dollar improves US trade gap

The US trade deficit shrank unexpectedly in August as the weak dollar boosted exports, according to figures from the Commerce Department.

The deficit, which is the difference between US imports and exports, fell to $30.7bn (£19.3bn) from a revised estimate of $31.9bn in July.

Exports rose slightly on the back of the weak dollar while imports fell.

The dollar has slipped recently, with traders moving into other currencies as the global economy begins to recover.

"I would interpret a flattening out of the trade deficit showing a broader stability in the economy," said Keith Hembre at FAF Advisors.

Imports in August totalled $158.9bn, compared with $159.8bn in July. Exports totalled $128.2bn, compared with $128bn in July.

The slight fall in imports reflects a small reduction in demand for goods among US consumers.

When the US economy begins to grow more strongly, this demand should pick up and the deficit could grow again.

GM agrees Chinese sale of Hummer

General Motors (GM) has agreed to sell its iconic Hummer brand to Chinese firm Sichuan Tengzhong Heavy Industrial Machinery for an undisclosed fee.

The two parties had been in talks about the sale for a number of months.

GM is in the process of selling and winding up a number of brands as it looks to reorganise after emerging from bankruptcy protection in July.

At the start of this month, the troubled carmaker announced it would be winding down its Saturn brand.

This was after the proposed sale to Penske Automotive Group collapsed.

GM has already announced that it is discontinuing the Pontiac brand, and is close to finalising the sale of its European brands Saab, Opel and Vauxhall. GM plans to reinvent itself by concentrating on fewer brands following bankruptcy protection, made necessary after car sales plummeted during the downturn.

Tata Motors to raise USD 600 mn via share sale in intl mkt

India's largest auto maker Tata Motors on Friday said it will raise up to USD 600 million (about Rs 2,783 crore) through issue of securities in the international market.

"The company has today launched an issuance of GDS (Global Depository Shares) and convertible notes for an aggregate amount up to USD 600 million, with an option to retain higher amount in the international market," Tata Motors said in a filing to the Bombay Stock Exchange.

Shares of Tata Motors plunged five per cent to a low of Rs 558.20 in the morning trade on the BSE.

Last month, Tata Motors sold 50 lakh shares in Tata Steel at an average price of Rs 473 a piece, aggregating to Rs 236.50 crore through open market transaction.

The auto maker had in August approached public for the second time in a year to raise about Rs 1,500 crore via fixed deposit schemes, offering up to 9.88 per cent annual interest for a three-year deposit.

In December 2008, it borrowed over Rs 2,000 crore from public for a period of up to three years as it was struggling to finance its USD 2.3-billion JLR buyout. nd

World financial crisis 'not over'

The US economist widely credited with having predicted the financial crisis has warned we are already "planting the seeds of the next crisis".

Nouriel Roubini told the BBC that he is concerned about the growing gap between the "bubbly and frothy" stock markets and the real economy.

Over the last six months, the Dow Jones Industrial Average has risen about 45%.

But Mr Roubini says he sees an economy where consumers are "shopped out" and "debt burdened".

'Crisis not over'

Based on the run up in share prices in recent months, investors appear to be betting that good times are around the corner. A view not shared by Mr Roubini.

"The crisis is not yet over," the New York University professor said."I see an economy where the consumers are shopped out, debt burdened, they have to cut back consumption and save more.

"The financial system is damaged... and for the corporate sector I don't see a lot of capital spending because there is a glut of capacity."

Mr Roubini believes US house prices have further to fall, straining America's fragile recovery.

US President Barack Obama wins Nobel Peace Prize

United States President Barrack Obama was awarded the Nobel Peace Prize for "his extraordinary efforts to strengthen international diplomacy and cooperation between peoples," the Nobel Committee said in Oslo on Friday.

Obama has called for disarmament and worked to restart the stalled Middle East peace process since taking office in January. He scored another first of sorts by winning the Nobel Peace Prize while just a few months in office.

Barack Hussein Obama was born on 4th August, 1961 is the 44th and current President of the United States.

He is the first African American to hold the office, as well as the first born in Hawaii.

Obama is a graduate of Columbia University and Harvard Law School, where he was the president of the Harvard Law Review.

Obama is the third sitting U.S. President to be awarded the prize, following Theodore Roosevelt in 1906 and Woodrow Wilson in 1919. Former U.S. President Jimmy Carter won in 2002.

The prize worth 10 million Swedish crowns ($1.4 million) will be handed over in Oslo on 10th December.

EU consults on Microsoft pledges

The European Union has begun an investigation to determine whether Microsoft is upholding pledges to curb anti-competitive practices.

It is consulting PC makers, software firms and consumers on Microsoft's offer to allow users to pick different browsers when they install Windows.

The bloc ruled in 2004 that Microsoft had abused its dominant market position by freezing out rivals.

It said Microsoft must let rivals' products run on its operating system.

"The commission will formally market test proposals made by Microsoft to address concerns regarding the tying of Internet Explorer to the Windows PC operating system," said the EU's competition commissioner Neelie Kroes.

"The preliminary view is that Microsoft's commitments would indeed address our concerns," she added.

"PC users should have an effective and unbiased choice between Internet Explorer and competing web browsers."

Toyota increases hiring in Japan

Toyota is hiring 800 contract workers in Japan, its first increase in jobs in more than a year.

The Japanese carmaker said this was due to higher demand for its Prius petrol-electric hybrid in Japan.

Toyota now employs 1,300 contract workers in Japan, who are distinct from the 70,000 full-time workers that have guaranteed lifetime employment.

Toyota, struggling with the global downturn in auto sales, had stopped employing contractors last June.

The majority start work next month at its Tsutsumi plant in central Japan, which makes the Prius and other models for the Japanese market.

The Prius, launched in 1997, is now in its third generation. By the end of April, Toyota had sold 1,028,000 of the cars worldwide, more than half of them in North America.

At its peak in 2005, Toyota employed over 11,600 contract workers - who are hired for fixed periods of employment.

Gold returns back above $1,000

The price of gold has touched $1,000 an ounce for the first time in six months.

The move could be seen as a sign that investors believe the worst of the global recession is over and are worried about inflation.

Others who are less convinced about the strength of the recovery are moving into gold, which is usually sought as a haven from economic turmoil.

Gold - seen as an attractive investment in times of inflation - has risen 13.6% in value this year.

'Uncertainty'

The US dollar - which often moves in the opposite direction to gold - has been declining during that same time.

"Gold's rising price is due to uncertainty all the way from personal investors right through to institutions," said Sandra Close, an analyst at Surbiton Associates."There are questions out there over the health of economies, where interest rates are going. All that encourages gold hoarding," she said.

Gold reached an all-time record of $1,032 an ounce in March 2008.

The commodity is measured and sold in troy ounces. One troy ounce equals 31.1035 grams or 480 grains. One troy ounce is equal to 1.09711 avoirdupois ounce - those widely used to measure weights in the US and UK.

Gold has risen for each of the past eight years.

Oil rises in Asian trade on improved sentiment

The analysts are of the view that the oil extended its reach in Asian trade on Tuesday to lift in the part by improved investor capacity about the global economy's recovery prospects in the markets.

Oil extended its rise in Asian trade on Tuesday, lifted in part by improved investor sentiment about the global economy's recovery prospects, analysts said.


Comments by oil kingpin Saudi Arabia that the market was "very stable and healthy" were also seen providing support to prices, they said.


New York's main contract, light sweet crude for October delivery firmed 20 cents to USD 68.22 a barrel.


Brent North Sea crude for October delivery put on 37 cents to USD 66.90.
"With growth picking up in virtually every country, a self-reinforcing process or positive feedback loop' is developing," analysts from Bank of America-Merrill Lynch said in a report.


"Growth in individual countries is stimulating global growth, via trade and confidence channels. This adds to our confidence in the sustainability of the recovery."
Saudi Oil Minister Ali al-Naimi said on arriving in Vienna on Monday ahead of a meeting of the OPEC crude cartel that current oil price levels were satisfactory.


"The market is in very good shape: very well-supplied," Naimi told reporters. "The price is good for everybody, consumer (and) producer," hovering recently between 68 and 73 dollars per barrel, he added.


He reiterated the view of several fellow OPEC ministers that further cuts to oil production quotas were unlikely and said Wednesday night's meeting would seek to enforce compliance with existing reductions "as best we can.

Iran to import Venezuelan petrol

Venezuela has agreed to export petrol to Iran, in a sign of closer ties between two of America's most vocal adversaries.

At the end of a two-day visit to Iran, President Hugo Chavez said Venezuela would supply 20,000 barrels of petrol a day to the country.

Iran is a major oil exporter but lacks domestic refining capability.

Iranian leaders expressed support for the Venezuelan socialist leader's anti-American policies.

Mr Chavez has been using Venezuela's oil wealth to counter US influence in Latin America and to boost ties with nations not friendly with Washington.

"Venezuela has agreed to export 20,000 barrels of petrol daily to Iran from October in a deal worth $800 millon (£485m)," he was quoted as saying by Iranian media.

He added: "This amount will be deposited in a fund established in Iran and will be used to finance purchase of machinery and technology from Iran."

ONGC to ramp up oil production at Imperial

India's Oil and Natural Gas Corp (ONGC) plans to rapidly ramp up crude oil production of Imperial Energy, the firm it acquired early this year, and consolidate operations even as it looks at opportunities to expand its presence in western Siberia.

ONGC Videsh Ltd, the overseas investment arm of the state-run explorer, is currently in the process of consolidating operations.



"When we took over (Imperial in January 2009), oil production had fallen to below 6,000 barrels per day. We were able to restore it to about 8,200 bpd by May and have now ramped it up to 11,200 bpd," an official said.



As a confidence building measure, India's Petroleum Minister Murli Deora visited the Imperial Energy headquarters at Tomsk and met Tomsk Governor Viktor Kress.



The visit was aimed at helping the transition of the company from British parentage to an Indian one.



Deora, who flew into this sleepy western Siberia town on Sunday evening, was given a presentation on Imperial operations and was informed that the output would be ramped up to about 16,000 bpd by the year end. By the end of 2010, the production is targeted to cross 25,000 bpd.