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					                                                                                                                                                                                                                        ARAB TIMES, THURSDAY, AUGUST 25, 2011
    BUSINESS                                                                                                                                                                                                                                                                    40

              John Nielsen of the American
     Automobile Association (AAA) demon-                                                                                                                                                      Iran denies it resumed petrol imports
    strates charging a Nissan Leaf electric
      car from an AAA roadside assistance
  truck at the unveiling of North America’s                                                                                       A top Iranian lawmaker denied                    lished based on a misinterpretation             Soudani was quoted by Mehr. It quot-
first roadside assistance truck capable of                                                                                        Wednesday he had said the oil-rich               made by some media,” he added.                  ed Soudani as saying the decision to
            charging electric vehicles in Los                                                                                     country had decided to resume petrol                The remarks came after the Mehr              import petrol also would allow the gov-
        Angeles, California, on Aug 23. The                                                                                       imports, after the oil minister said Iran        news agency quoted him as saying on             ernment to meet daily petrol needs,
   truck, which will also be able to provide                                                                                      was “self-sufficient.”                           Monday that the government had                  following a decrease in output he
   traditional roadside assistance to gaso-                                                                                         “I do not confirm the report regarding         decided to import petrol, targeted by           blamed on a May 23 blast at the
   line powered vehicles, will be deployed                                                                                        petrol imports into the country,” Nasser         international sanctions on Iran over its        southern Abadan refinery, Mehr
 in a pilot program in six US metropolitan                                                                                        Soudani, deputy chairman of parlia-              disputed nuclear programme.                     reported.
         areas across the US including San                                                                                        ment’s energy commission, was quot-                 “The domestically produced petrol               Oil minister Rostam Qasemi on
       Francisco, Los Angeles, Tampa Bay,                                                                                         ed by the state television’s website as          due to its low octane (rating) lacks a          Tuesday dismissed the report, saying
 Florida, Portland, Oregon and Knoxville,                                                                                         saying.                                          desirable quality and has to be mixed”          Iran was “self-sufficient” in petrol pro-
                          Tennessee. (AFP)                                                                                          “Unfortunately, the report was pub-            with imported fuel with a better quality,       duction. (AFP)

                                                                                                  Naphtha, gas oil margins remain strong

Bulls prevail at end of ME crude Oct trade
SINGAPORE, Aug 24, (RTRS): Trade of              miums as high as $2.50 a barrel to Dubai    between $1.20 and $1.30 a barrel to          for Swaps (EFS) for October fell by 10            China urged a “stable transition of         istry official said.
October-loading cargoes in the Middle            quotes, up from premiums as low as          Dubai quotes, traders said.                  cents to $4.45 a barrel at 0830 GMT,           power” in Libya and said on Wednesday             ■ CRACK SPREADS
East crude market was nearly completed           $1.70 last month.                              Oman crude cargoes were seen ending       Reuters data showed, down from levels          it is in contact with the rebel National          Fuel oil’s September crack widened 9
after a sharp turnaround in valuations that         Middle East condensate was still get-    the month at premiums larger than 60         above $5 last week, before the Libyan          Transitional Council, the clearest sign        cents to a discount of $5.20 a barrel to
drove most grades to premiums from dis-          ting support from a wide premium of         cents to Dubai quotes, up from discounts     rebels’ decisive advance against               that Beijing has effectively shifted recog-    Dubai crude, while the October discount
counts in early August.                          Brent over regional benchmark Dubai, as     deeper than 30 cents at the start of the     Muammar Gaddafi.                               nition to forces poised to defeat              also weakened 8 cents to $5.99.
   The restart of a crude distillation unit at   a quick resumption of Libyan output         month.                                          The front-month EFS on June 15              Muammar Gaddafi.                                  Gas oil’s September crack inched up 9
Taiwan’s Formosa Petrochemical Corp’s            remained far from certain. This main-          Abu Dhabi Murban was one of the few       touched $9.20, the highest intraday value         A Libyan rebel government would hon-        cents to a premium of $17.73, while the
refinery at the weekend bolstered expecta-       tained a competitive advantage for Qatari   grades to weaken recently, slipping to a     since the spread reached a record of           our all the oil contracts granted during the   October crack was also 11 cents higher at a
tions of strong demand for heavy sour            grades over Australian Northwest Shelf      premium as low as 10 cents a barrel to the   almost $12 in October 2004.                    Muammar Gaddafi era, including those of        premium of $18.00 a barrel to Dubai crude.
grades from September onwards. Refineries        (NWS), traders said.                        ADNOC official selling price from above         ■ DME OMAN                                  Chinese companies, Ahmed Jehani, a sen-           Naphtha’s September and October
across the region will also increase crude          Perception of a tight condensate mar-    30 cents last week.                             October Oman traded on the DME              ior rebel representative for reconstruction    cracks to Brent both widened 12 cents to
intake in the run-up to winter.                  ket also crystalised on expectations of a      The grade’s high quality makes it a       added 4 cents to a premium of 64 cents to      told Reuters in an interview.                  a discount of $4.37 and $4.34 a barrel
   The bullish mood also permeated to            limited number of cargoes to be sold in     competitor with Brent-related grades,        Dubai swap quotes at 0830 GMT, using the          India’s Reliance Industries has aban-       respectively.
the condensates market, where Qatar              Tasweeq’s tender.                           which are expected to weaken with a          settlement price for DME futures, the ICE      doned plans to develop an offshore oil            ■ OUTRIGHT PRICES
International Petroleum Marketing Co, or            Naphtha and gas oil margins remained     return of Libyan production.                 one-minute marker for Singapore and the        exploration block in Oman six years after         October ICE Brent was at $108.92 a
Tasweeq, was expected to sell deodorised         strong, sending values of Qatar low sul-       ■ EAST-WEST                               Brent-Dubai EFS as calculated by Reuters.      signing a production sharing agreement         barrel at 0830 GMT, down 7 cents from
field condensate (DFC) via tender at pre-        phur condensate (LSC) to premiums of           The Brent/Dubai Exchange of Futures          ■ MARKET NEWS                               with the government, an oil and gas min-       Tuesday.

       Give-away to corporations: opponents

    US overseas profit tax
                                                                                             US durable goods orders up in
    holiday showdown set
    WASHINGTON, Aug 24, (RTRS):                     “The tax holiday promoted by
                                                                                             July, ‘eases’ economic worries
    Backed by powerful companies                 the WIN America coalition is a                                                           Businesses pulling back on spending: data
    spending millions of dollars,                real loser for hardworking
    Washington lobbyists are fighting            Americans,” Doggett told Reuters.
    in the marble corridors of                      “It didn’t create jobs last time         WASHINGTON, Aug 24, (AP): A surge in demand for autos                                       points in morning trading. Broader indexes also increased.
    Congress for a tax break on $1.5             and ... multinational corporations          and aircraft drove orders for long-lasting manufactured                                        Overall orders for durable goods rose 4 percent last month, the Commerce
    trillion in profits held overseas to         have no intention of using this                                                                                                         Department said Wednesday.
    escape the US tax man.                       repatriation tax windfall to create         goods higher in July, easing fears that the US economy might                                   The report “reinforces other data that the economy wasn’t at serious risk of recession
       When lawmakers return next                jobs. A bargain tax rate on foreign         be on the verge of another recession.                                                       through July,” said David Resler, chief US economist at Nomura Securities. Retail sales
    month from summer break, pow-                profits, many hidden in tax                   The rebound in the auto industry helped offset a decline in orders for most               and industrial production also held up well last month, he said.
    erful high-tech and pharmaceuti-             havens, would be an incentive for           other factory goods.                                                                           The data did offer a cautionary signal: a key category that tracks business investment
    cal companies will step up their             job creation abroad and even more             Stocks rose after the better-than-expected report showed the biggest increase in          plans fell 1.5 percent, the biggest drop in six months. That suggests businesses are
    push for an overseas profit tax              layoffs at home.”                           durable-goods orders since March, when the Japan earthquake disrupted supply chains         pulling back on spending. Orders in all other major categories dropped, including com-
    repatriation holiday and pose a test            The repatriation tax holiday             and slowed auto production. The Dow Jones industrial average gained more than 50            puters, electronic goods, and machinery.
    for President Barack Obama.                  fight opens a window into the                                                                                                                                                              Resler and other economists also
       The idea has been kicking                 game of writing tax law in                                                                                                                                                              warned that the turmoil in the stock mar-
    around for months, gaining only              Washington and the tightly knit                                                                                                                                                         kets could cause businesses to pull back
                                                 group of politicians and lobbyists                                                                                                                                                      further this month.
    limited traction, but supporters                                                                                                                                                                                                        “It remains to be seen whether firms
    sense their moment may be near,              who play it.
                                                 ■ Duke Energy Corp CEO Jim                                                                                                                                                              cancelled or postponed planned orders,”
    with the economy sluggish and                                                                                                                                                                                                        Paul Dales, an economist at Capital
    Obama searching for new ways to              Rogers, a Southerner with ties to                                                                                                                                                       Economics, said in note to clients.
    ignite business investment and               Democrats, is a frequent public                                                                                                                                                            A durable good is a product that is
    create jobs.                                 speaker for WIN America, advocat-                                                                                                                                                       expected to last at least three years.
       A repatriation tax holiday offers         ing for the tax holiday. Rogers led a                                                                                                                                                   Economists view the report cautiously
    just that, advocates say, although           fund-raising committee to bring the                                                                                                                                                     because orders tend to fluctuate from
    critics contend the proposal’s               2012        Democratic       National                                                                                                                                                   month to month.
    promises of economic stimulus are            Convention to Charlotte, North                                                                                                                                                             Excluding transportation goods, orders
    illusory and serve only to mask a            Carolina, where Duke is based. The                                                                                                                                                      rose just 0.7 percent. It was the third
    tax break costing the United States          company guaranteed a $10 million                                                                                                                                                        straight gain in so-called core orders.
                                                 line of credit for the event.                                                                                                                                                           Demand for primary metals surged 10.3
    $80 billion over 10 years.
       The White House, so far, has              ■ On a more private level, lobby-                                                                                                                                                       percent, the most since last November.
                                                 ists and aides said, Oracle                                                                                                                                                             Some of that increase was likely due to
    stood firm against a holiday, refus-                                                                                                                                                                                                 higher prices for metals such as copper.
    ing to consider it outside the con-          President Safra Catz and Cisco
    text of making broad changes in              Systems Inc CEO John Chambers                                                                                                                                                                         Recession
    the convoluted tax code.                     — both leaders of California high-                                                                                                                                                        Overall, orders rose to a seasonally
       That stance could be strained as          tech giants — have met lawmakers                                                                                                                                                       adjusted $201.5 billion in July. That is 35
    the November 2012 elections near             to talk up the WIN America cause.                                                                                                                                                      percent higher than the recession low hit
    with 9.1 percent of Americans                Besides Oracle and Cisco, two                                                                                                                                                          in April 2009. But it is still 18 percent
                                                 other WIN America supporters are                                                                                                                                                       below the level in December 2007, when
    unemployed and Obama courting                                                                                                                                                                                                       the recession began.
    corporate support for his reelec-            Apple Inc and Google Inc.
                                                 Employees of all four of these                                                                                                                                                            Demand for autos and auto parts
    tion campaign.                                                                                                                                                                                                                      jumped 11.5 percent, the most in eight
                                                 firms have been generous Obama
                  Struggle                       supporters, altogether donating                                                                                                                                                        years. Aircraft orders, a volatile category,
                                                 $1.3 million to his 2008 campaign,                                                                                                                                                     soared 43.4 percent, after falling 24 per-
       “As this economy continues to                                                                                                                                                                                                    cent in June.
    struggle, I think our case gets              according to Sunlight, according                                                                                                                                                          Auto production is rebounding after a
    stronger every day,” said                    to the Sunlight Foundation, a good                                                                                                                                                     slowdown caused by the Japan earth-
    Republican Representative Kevin              government watchdog group.                                                                                                                                                             quake. The Federal Reserve reported last
    Brady, author of a repatriation tax          ■ WIN America has hired dozens                                                                                                                                                         week that factory output rose 0.6 percent
    holiday bill backed by 15                    of former staffers of congressional                                                                                                                                                    in July, mostly because of an increase in
    Republicans and eight Democrats              tax writing panels, according to            Alvaro Moreira (left), a recruiter for Duty Free Americas, interviews prospective employee Marquis Vinson as he looks for                  auto production.
    in the House of Representatives.             Sunlight.                                   a job at the job fair in the James L. Knight Center on Aug 23, in Miami, Florida. The job fair, known as ‘For the People’                     A big order by American Airlines
       “Lowering that tax rate for a year           Ex-Congressman Jim McCrery,              Jobs Initiative, was organized by the Congressional Black Caucus and is part of a nationwide series of job fairs and town                  helped boost the aircraft sector. American
                                                                                                                                                 hall meetings. (AFP)                                                                   Airlines ordered 100 new Boeing 737
    to bring those dollars home, people          once the top Republican on the
    don’t understand why we’re not               tax-writing House Ways and                                                                                                                                                             planes with fuel-efficient engines in July.
                                                                                                                                                                                                                                           Manufacturing has been a key source
    doing that. Some may view it as a
    tax break, but others just see these
                                                 Means Committee, is lobbying for
                                                 the group. So is Jeff Forbes, for-
                                                                                                                                    ‘Economy remains in slump’                                                                          of economic growth since the recession
                                                 mer chief of staff to Senate                                                                                                                                                           officially ended in June 2009. But it
    stranded profits that could do a lot                                                                                                                                                                                                began to slump this spring, along with the
                                                 Finance Committee Chairman

                                                                                             US budget ‘improves’: CBO
    of good things,” Brady said.                                                                                                                                                                                                        broader economy.
       No Senate bill has emerged, but           Max Baucus, a key player. Baucus                                                                                                                                                          Orders fell in April and June, partly
    Democratic Senator Kay Hagan is              played a central role in killing the                                                                                                                                                   because of supply disruptions stemming
    considering one, her spokes-                 last attempt to get a repatriation                                                                                                                                                     from the March 11 earthquake in Japan.
    woman said.                                  tax holiday approved. He stood                                                                                                                                                         And a spike in gas prices earlier this year
       “Repatriation is on the table,”           firmly against an amendment                 WASHINGTON, Aug 24, (RTRS): A                package next month to help boost an            years, some $3.3 trillion below its previ-     cut into consumer spending, reducing
                                                 offered in 2009 by fellow                   sweeping US budget deal has brightened       economy that threatens to slide back into      ous projection, CBO said.                      demand for big-ticket items, such as com-
    said Chris Krueger, policy analyst                                                       the country’s fiscal outlook but unem-       recession. At the same time, lawmakers            Nearly two-thirds of that savings is due
    at investment firm MF Global.                Democratic Senator Barbara                                                                                                                                                             puters, appliances and furniture.
                                                 Boxer. It failed in a 55-42 vote.           ployment will remain high over the near      on a special congressional committee will      to the deficit-reduction deal, which              Several recent reports suggest the sec-
       Like most analysts, however, he                                                       term, nonpartisan congressional forecast-    try to squeeze more budget savings from        passed earlier this month as part of a
    said a new 12-member “super                     The stance taken by Baucus — a                                                                                                                                                      tor could be slowing further. A survey by
                                                                                             ers said on Wednesday.                       the tax code and popular benefit pro-          package to raise the national debt limit.      the Federal Reserve Bank of Philadelphia
    committee” being formed to tack-             member of the new deficit “super               The report by the Congressional           grams like Medicare.                           Another one-fifth is attributable to lower
                                                 committee” — will be crucial this                                                                                                                                                      showed that manufacturing in the mid-
    le the federal deficit likely will not                                                   Budget Office is likely to add fuel to the      Policymakers will have to balance aus-      projected interest rates during the coming     Atlantic region contracted in August by
    embrace a tax holiday, as promot-            time around for WIN America and             debate over jobs and the economy that is     terity and stimulus efforts over the com-      decade, CBO said.
                                                 its allies, said aides and lobbyists.                                                                                                                                                  the most in more than two years. A
    ed by a corporate lobbying group                                                         set to dominate Washington through the       ing months, Obama’s fellow Democrats              Stocks rose as much as 1 percent and        Richmond Fed survey released Tuesday
    called the WIN America cam-                  A Senate Finance Committee aide             2012 elections.                              said.                                          Treasury bond prices fell as the figures       and a New York Fed survey last week
    paign.                                       said only that Baucus “is examin-              The recent budget deal, passed earlier                                                   revealed a stronger fiscal outlook than        also pointed to slowdowns in those areas,
                                                 ing proposals in the context of             this month after months of acrimonious
                                                                                                                                                        Underscores                      previously thought. Both markets later
       The main reason? The White                                                                                                                                                                                                       although not as severe as the Philadelphia
    House and other Democratic                   comprehensive tax reform and the            debate, will help slash projected budget        The report “underscores the need for        flattened out as other factors overtook        region.
                                                 forthcoming deficit reduction               deficits nearly in half over the next 10     the Joint Committee to propose a plan to       early enthusiasm about the CBO data.              Economists predict further weakness,
    opponents want to use it as lever-                                                                                                    help put America back to work, coupled
    age as long as they can to gain              efforts.”                                   years, CBO said.                                                                               The economic picture could worsen           even as temporary factors fade. Falling
                                                    Nearly everyone on both sides of            But economic growth will remain slug-     with a blueprint to reduce the long term       considerably if Congress extends tempo-        stock prices and fear of another recession
    concessions from corporations on                                                         gish through 2012, CBO said. It said the     deficit,” said Democratic Representative       rary tax cuts that were passed under
    other tax reform issues.                     the repatriation debate agrees that                                                                                                                                                    may persuade consumers and businesses
                                                 the tax code, especially the part of        unemployment rate, currently at 9.1 per-     Chris Van Hollen, one of 12 lawmakers          President George W. Bush.                      to hold back on big purchases. That could
       “Repatriation ... is an important                                                     cent, will only fall to 8.5 percent by the   named to the bipartisan panel.                    CBO’s budget projections assume that
                                                 it dealing with overseas corporate                                                                                                                                                     slow orders for industrial machinery,
    bargaining lever - not one to be                                                         time voters head to the polls in November       Republicans said the report showed          those cuts will expire at the end of 2012.     electronic goods and appliances.
    given away easily by lawmakers,”             profits, needs an overhaul.                                                              that Obama’s efforts to boost the econo-
                                                                                             2012.                                                                                       Democrats want to extend them for mid-            Analysts have been scaling back their
    he said.                                        “The way we tax our multina-                The economic picture is probably even     my in the wake of the 2008-2009 finan-         dle and low income taxpayers, while
                                                 tionals is broken,” said Duke                                                                                                                                                          forecasts for economic growth for this
       Congress still feels burned by                                                        worse as grimmer data has emerged since      cial crisis have not borne fruit.              Republicans want to extend the tax cuts        year and next.
    the last repatriation tax holiday.           Senior Vice President for Tax               the office completed its work in early          “A slight decrease in the projected         for the wealthiest households as well.            Michael Feroli, an economist at
    Approved in 2004 with the back-              Keith Butler in an interview,               July, CBO Director Doug Elmendorf            deficit is nothing to celebrate, particular-      An aging population and rising health-      JPMorgan Chase, projects the economy
    ing of President George W. Bush,             adding that Duke’s corporate tax            said.                                        ly when it is accompanied by the grim          care costs will force Congress to raise        will expand at only a 1 percent annual
    that tax break did little to boost the       return is 10,000 pages long.                   “The pace of the recovery has been        news that CBO expects the national             taxes or pursue further spending cuts if it    rate in the second half of the year. That’s
    economy, despite promises of job-               But like other executives back-          slow, and the economy remains in a severe    unemployment rate to continue to exceed        wants to keep deficits and debt under          not much better than the 0.8 percent
    creating investment.                         ing WIN America, Butler said tax            slump,” Elmendorf wrote in a blog post.      8 percent well past next year,” House of       control, Elmendorf wrote.                      growth that the government reported for
       Democratic         Representative         reform will take too long and repa-            That could complicate President           Representatives Speaker John Boehner              In the current fiscal year, which ends      the first half of the year.
                                                 triation is needed now.                     Barack Obama’s re-election hopes and         said in a statement. “The president’s poli-    on Sept. 30, the government will spend            The Federal Reserve this month said
    Lloyd Doggett said another such                                                                                                       cies were supposed to keep that from
                                                    “Repatriation would really               give more ammunition to Republican                                                          $1.284 trillion more than it collects,         that it expects weak growth for the next
    corporate give-away would simply                                                         rivals who have criticized his economic      happening.”                                    according to CBO’s latest estimate. That       two years. As a result, it said that it plans
    be a mistake.                                      Continued on Page 41
                                                                                             policies.                                       The United States will rack up $3.487       is a $115 billion improvement over its         to keep its short-term interest rate near
                                                                                                Obama plans to unveil a job-creation      trillion in cumulative deficits over 10        last estimate in March.                        zero until at least mid-2013.

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