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OPEC SUMMIT Saudi’s King Abdullah says oil should not become tool of war UPDATE

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(Updates to add background to King Abdullah’s comment)

RIYADH (Thomson Financial) – Saudi Arabia’s King Abdullah said on Saturday that oil should not be allowed to become a tool of war, in a speech at the opening of the summit for OPEC leaders in Riyadh.

Shortly before King Abdullah spoke, Venezuelan President Hugo Chavez warned oil prices could hit 200 usd a barrel if the United States attacked Iran or Venezuela.

‘If the United States was mad enough to attack Iran or aggress Venezuela again the price of a barrel of oil could reach 150 usd or even 200 usd,’ he said.

‘The basis of all aggression is oil. It is the underlying reason,’ he said, pointing to the war in Iraq and US threats against Iran.

‘Today OPEC stands strong. It is stronger than it has ever been in the past,’ he said. ‘OPEC should set itself up as an active geopolitical agent.’

He also suggested the 12-member organisation should ‘ask the most powerful nation in the world to stop threatening OPEC’, referring to the United States.

tf.TFN-Europe_newsdesk@thomson.com

afp/am/am

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Chevron’s Kazakstan Tengiz oilfield jv fine reduced to 309 mln usd

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ALMATY, Kazakhstan (Thomson Financial) – Chevron’s Tengiz oilfield joint venture in Kazakhstan has had its fine for environmental violations at the oilfield reduced to 309 mln usd on appeal, roughly half of the initial fine of 609 mln usd.
The fine was reviewed yesterday, said Yerbol Kouanov, head of law services for the protection of the environment department of the Atyrau region, where Tengiz is situated.
He added the fine was paid yesterday by the TengizChevroil joint venture, controlled 50 pct by Chevron. The company must also pay 10 mln usd in legal fees.
At the time of the initial violation, the environment minister Nurlan Iskakov said: ‘In the past, the violations were almost systematic — there are 98 accidents, 15 of which were concealed between 2003 and 2006. We have set the fine at 74.4 bln tenge, or 609 mln usd.’
tf.TFN-Europe_newsdesk@thomson.com
jag/lht/jag
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Shanghai futures exchange expects to launch silver futures – official

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SHANGHAI (XFN-ASIA) – The Shanghai Futures Exchange expects to launch silver futures following the approval of gold futures by the regulator, a bourse official said.
The bourse has also submitted an application to the regulator to trade in steel futures, said Huo Ruirong, the deputy executive officer of the Shanghai bourse.
He added that it is also considering the launch of other futures such as nickel, lead, crude oil, oil products, liquefied natural gas (LNG) and coal.
‘We are optimistic about winning approval to trade (these) products in the near future,’ Huo said.
Meanwhile, he reiterated at a conference here that gold futures are to be unveiled have ry soon’, although no timetable was given.
The Shanghai Futures Exchange won regulatory approval to trade gold futures in September.
Currently, it trades in copper, aluminum, zinc, natural rubber and fuel futures.
ina.zhou@xfn.com
allen.shu@xfn.com
iz/als/kmq
xfnals/xfnkm
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Family horrified when toy sedates child

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LITTLE ROCK, Ark. (AP) – The parents of a Jacksonville toddler were horrified when their child swallowed part of a colorful toy bead set made in China and then passed out.

He apparently was overcome when the coating on the beads metabolized into a chemical compound known as the ‘date rape drug.’

‘I thought he was going to die. I didn’t want to tell my kids that, of course, but I thought he was going to die,’ said Shelby Esses, whose son Jack swallowed a handful of Spin Master Aqua Dots the day before Halloween. ‘It was horrible.’

In the latest recall involving Chinese toymakers, the Consumer Product Safety Commission on Wednesday ordered Aqua Dots off store shelves.

Two children in the U.S. and three in Australia were hospitalized after swallowing the beads.

Spin Master Aqua Dots can be arranged into designs and then fused together when sprayed with water.

Jack Esses, 20 months old, started stumbling and throwing up the Aqua Dots after playing with his sister’s set on Oct. 30, his mother said in an interview Thursday. For a time, he slipped out of consciousness — waking up only to vomit.

‘I thought that the Aqua Dots had to have done something, but I wasn’t sure because I didn’t think they were toxic. There was no warning on the box that said they were toxic. It just said that they were a choking hazard,’ the child’s mother said.

Jack’s father Jonathan is training to pilot C-130 planes at the Little Rock Air Force Base in Jacksonville.

Dr. Matt Jaeger of Arkansas Children’s Hospital treated the child and said he was very worried when he first saw him. The hospital started tests and performed a head scan, but within hours the boy recovered.

‘He got better so fast we ended up letting him go home,’ Jaeger said.

Scientists say a chemical coating on the beads, when ingested, metabolizes into gamma hydroxy butyrate, the so-called date rape drug. The compound can induce unconsciousness, seizures, drowsiness, coma and death.

‘He was out for about six hours, and he woke up just kind of on his own and, within minutes, was back to his normal self,’ Shelby Esses said. ‘He was just happy and yelling and wanting to get out of the hospital and causing a stir. All of the nurses wanted to come see him.’

Before the child was released, his father crawled around on the carpet at home to make sure every Aqua Dot was out of the house.

Australia-based Moose Enterprises distributes the toys in 40 countries.

Jaeger said the hospital lab was able to identify the chemical involved after Shelby Esses brought in toy components for testing.

Retailer Toys ‘R’ Us issued a ‘stop sale’ for Aqua Dots on Tuesday in its North American stores and on its Web site after it learned of the news.

In Australia, the toy was named toy of the year at an industry function. But the toys, known as Bindeez in that country, were ordered off store shelves on Tuesday when officials learned that a 2-year-old boy and a 10-year-old girl were hospitalized after swallowing the beads. A 19-month-old toddler also was being treated.

Since the spring, toy companies have recalled millions of Chinese-made goods worldwide. Products including Barbie doll accessories and toy cars were pulled off shelves because of concerns about lead paint or tiny detachable magnets that could be swallowed.

A company spokeswoman for Moose Enterprises’ Hong Kong office said Aqua Dots production was outsourced to a mainland Chinese factory. She refused to elaborate and referred all further requests for comment to the company’s head office in Australia.

Moose Enterprises said Bindeez and Aqua Dots are made at the same factory in Shenzhen in southern Guangdong province.

The toys were supposed to be made using 1,5-pentanediol, a nontoxic compound found in glue, but instead contained the harmful 1,4-butanediol, which is widely used in cleaners and plastics.

The Food and Drug Administration in 1999 declared the chemical a Class I Health Hazard, meaning it can cause life-threatening harm.

Both chemicals are manufactured in China and elsewhere, including by major multinational companies, and are also marketed over the Internet.

It’s not clear why 1,4-butanediol was substituted, though there is a significant price difference. The Chinese online trading platform ChemNet China lists the price of 1,4-butanediol at between about $1,350-$2,800 per metric ton, while the price for 1,5-pentanediol is about $9,700 per metric ton.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Company charged with selling bad seeds

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LOS ANGELES (AP) – The president of a food distribution company has been charged with improperly labeling and selling 4,000 pounds of sesame seeds contaminated with salmonella, prosecutors said.

Oded Kenan and his Woodland Hills-based company Woodhouse Commodities Inc. were charged with one count of adulterated food violation and one count of misbranding, the City Attorney’s office said Tuesday.

Kenan faces up to two years in jail and both he and his company could face up to $2,000 in penalties if convicted.
Calls to Kenan and the company after business hours Tuesday were not immediately returned.

Prosecutors said the case began when Woodhouse purchased 840 bags of hulled sesame seeds from an Indian company and the seeds were held at the Port of Los Angeles for a random inspection by the U.S. Food and Drug Administration.

Despite the hold, Woodhouse transferred the bags to a distributor for sale. Realizing the mistake, the company asked for the bags’ return but 80 of them had already made their way to bakeries, cafes and restaurants in Las Vegas, prosecutors alleged.

In January, results from the FDA testing returned positive for salmonella and Woodhouse submitted the bags for an irradiation treatment to kill the detected bacteria.

But the company failed to inform the FDA of the 80 bags that went to Las Vegas, and distributed six irradiated bags for sale without putting a ‘Do not irradiate again’ label on them in violation of federal regulations, prosecutors said.

The label was required to prevent a second irradiation of food productions and potentially expose the seeds to high radiation levels.

None of the bags sold to Las Vegas businesses were recovered, and there were no reports of illnesses from the consumption of the seeds, said city attorney’s spokesman Frank Mateljan.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Italy’s Fri-El to use IPO proceeds for capacity growth

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MILAN (Thomson Financial) – Fri-El SpA, the Italian renewable energy producer, said it will raise up to 461 mln eur from its initial public offering and will use the funds to meet its target of increasing installed capacity from 232.5 megawatts (MW) to 1,995 MW by 2012.

‘We intend to invest 2.4 bln eur from here to 2011, mainly in wind, and expand our installed capacity which is the main driver of our revenue base,’ Fri-El CEO Josef Gostner said at an IPO presentation.
The company said it will invest 1.3 bln eur in wind power development until 2010; 773 mln in biomass projects until 2011; 232 mln in biogas and 60 mln in biodiesel, Gostner said.

By 2012, the company aims to have installed wind capacity of 1,196 MW, biomass capacity of 724 MW, and biogas capacity of 75 MW, he said.
In its IPO, Fri-El will offer retail and institutional investors a maximum of 133.5 mln new shares, equal to 25 pct of the company’s capital.

The price range is 2.30-3.45 eur per share, valuing the company at 0.921-1.382 bln eur.

Fri-El’s current shareholders, the Gostner family and their financial holdings, will also sell up to 20.025 mln existing shares to service a greenshoe option given to global coordinators UniCredit and Merrill Lynch.

If the greenshoe option is exercised the market float will be 28.8 pct.
The retail offer will run from Nov 12-16 while bookbuilding for institutional investors will run from Nov 5-16.

Fri-El expects to debut, as a blue chip stock, on the Milan stock market on Nov 21.

In 2006, Fri-El posted sales of 23.1 mln eur while in the first nine months of the current year sales were 28.4 mln.
Asked whether the sales growth rate of around 100 pct in 2006, versus 2005, could continue, Gostner said it is are asonable’ to expect this trend will continue.

Gostner said the company will not offer a dividend in the short term because it will focus on investment and growth.

stephen.jewkes@thomson.com

sj/wj

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Google unveils Android mobile phone platform, formation of Open Handset Alliance

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NEW YORK (Thomson Financial) – Google Inc. Monday said it plans to discuss its Android platform for mobile devices in a conference call at 12 p.m. ET. The announcement is confirmation of the company’s long-anticipated plans to enter the mobile phone area.

In a joint statement with other member, Google also disclosed the formation of the Open Handset Alliance, which it said is comprised of more than 30 technology and mobile industry companies including Motorola, Qualcomm, T-Mobile, HTC and others.

The company said the first phones based on the Android platform to be available in the second half of 2008. Android will be available under an open-source license with the Open Handset Alliance targeting next week for the release of an early access software development kit for developers to begin creating applications for the Android platform.

‘Thirty-four companies have formed the Open Handset Alliance, which aims to develop technologies that will significantly lower the cost of developing and distributing mobile devices and services,’ read a statement issued by Google and other members of the alliance.

‘The Android platform is the first step in this direction — a fully integrated mobile ‘software stack’ that consists of an operating system, middleware, user-friendly interface and applications,’ the statement continued.
Google shares were up 1.7% to $723.01 in midday trades. The session high of $726 represents a new all-time peak once again for the company, a bounce well above last week’s top at $706.07.

Michael Baron

mb

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Fed pumps $41B into US financial system

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WASHINGTON (AP) – The Federal Reserve pumped $41 billion into the U.S. financial system Thursday, the largest cash infusion since September 2001, to help companies get through a credit crunch.

The action comes one day after Fed Chairman Ben Bernanke and all but one of his central bank colleagues voted to slice a key interest rate for the second time in six weeks to protect the economy from the ill effects of collapse in the housing market, aggravated by the credit troubles.
The cash injection also came as Wall Street took a nosedive Thursday. The Dow Jones industrials were down more than 260 points in afternoon trading.
The Fed on Wednesday ordered its key rate, called the federal funds rate, to be lowered by one-quarter percentage point to 4.50 percent. That followed up on a bolder, half-percentage point cut in September. Those two rate reductions might be sufficient to help the economy make its way safely through trouble spots, Fed policymakers indicated.
The funds rate affects many other interest rates charged to millions of individuals and businesses and is the Fed’s most potent tool for influencing economic activity.
The Federal Reserve Bank of New York, which carries out the central bank’s open market operations, moved Thursday to inject $41 billion in temporary reserves into the U.S financial system. It came as part of ongoing efforts designed to ensure that the markets — which have suffered through a period of turbulence over the last few months — function smoothly. The cash infusion came in three separate operations.
A New York Fed spokesman said it was the largest single day of operations since $50.35 billion was pumped into the system on Sept. 19, 2001, following the terror strikes on New York and Washington. He declined further comment.
Fed policymakers at their meeting on Wednesday noted that the ‘strains from financial markets have eased somewhat on balance.’ Still many Fed officials in the last week have described the state of financial markets as fragile. Bernanke and other Fed officials have said it will take time for the markets to fully recover from the credit crisis.
Since August, the Fed has been pumping cash into the financial system to help ease strains from the credit crunch. It also has cut its lending rate to banks — a third such cut came on Wednesday. The Fed also has ordered two reductions to its most important interest rate, the funds rate, to help the situation.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Romney releases free-trade proposal

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DES MOINES, Iowa (AP) – Republican presidential candidate Mitt Romney says Washington must act to open more foreign markets to American products, and calls for the president to have new authority to negotiate such agreements.

Romney also wants what he calls a ‘Reagan Zone of Economic Freedom’ that would include U.S. free-trade agreement partners who are committed to open markets and ‘playing by the rules.’ Such an alliance could operate through the World Trade Organization and in other arenas to push trade agreements as well as labor, environmental and other reforms.

‘Governor Romney would seek to expand these efforts to include the European Union and other nations that agree to meet these standards, while challenging China and others advancing agreements that exclude America,’ the plan said.

The agenda items are part of Romney’s proposal for free trade, which he was expected to discuss during campaign stops in northern Iowa on Thursday. A copy of the plan was provided to The Associated Press.

In it, the former Massachusetts governor says the president should have trade promotion authority, saying the U.S. cannot afford to be cut out of any more deals. The proposal says the U.S. is excluded from more than 300 trade agreements globally.

Earlier this year, the Democratic-controlled Congress stripped President Bush of his power to negotiate ‘fast track’ trade agreements without intervention from Congress. Since 1975, only one other president, Bill Clinton, has been stripped of that authority, which was designed to speed the reduction of trade barriers and open new markets with other counties. Bush won’t get it back, and the next president might not, either.

Rather than promoting new free trade accords, some lawmakers want the government to concentrate on rewriting old deals such as the North American Free Trade Agreement, going after countries such as China that manipulate their currencies, strengthening product safety and pushing anti-sweatshop legislation.

Romney, who amassed a vast personal fortune as a venture capitalist, says a president who is going to grow the economy through new trade agreements needs his kind of experience. He also calls on Americans to are ject the Democrats’ policies of retreat from the world.’

Many Democrats and their labor and environmental allies are leery of free-trade deals, saying they lead to jobs being moved overseas, and to the exploitation of foreign workers and their environments.

‘Denying America the ability to negotiate to open markets while our competitors gain advantages is no strategy,’ the proposal says.

Some of the proposals were laid out in terms of how they would affect Iowa, which traditionally launches the presidential nominating season.

Romney calls for a conclusion to the Doha Round of global trade talks, discussions that were launched in 2001 but became bogged down because of differences between rich countries such as the United States and developing nations such as Brazil and India over farm and manufacturing trade.

‘The Doha Round and free-trade agreements can be huge opportunities for Iowa if we ensure no unilateral disarmament on agriculture and demand that they provide strong benefits for farmers and companies across Iowa,’ Romney’s policy says.

The proposal says existing trade agreements must be enforced if states like Iowa are going to succeed in the global economy.

Romney also wants U.S. leaders and those in other countries to help end currency manipulation in China and other countries, and to protect intellectual property rights. He also touches on improving standards for the safety of food and products entering the United States.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Marathon Oil plans refinery expansion

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HOUSTON (AP) – Integrated oil and gas company Marathon Oil Corp. said Wednesday its approved a $1.9 billion expansion and heavy oil upgrade at its Detroit refinery.

Construction is expected to begin later this year or in early 2008, depending on the speed of the permit process and certain regulatory approvals.

The company said the project with boost the refinery’s heavy oil processing capacity by about 80,000 barrels per day — including bitumen from Canadian oilsands. Total crude refining volume is expected to increase 15 percent to 115,000 barrels per day, Marathon said.

‘The Detroit refinery expansion and upgrade will enable us to link our recently acquired Canadian oil sands production, along with its significant growth potential, with a lower cost, higher value refining option,’ said Clarence P. Cazalot, Jr., president and chief executive of Marathon. ‘The estimated cost of this refinery expansion and upgrade project, at $22,000 per additional barrel of heavy oil capacity and excluding pipeline investments, is less than half the cost of announced bitumen upgrading projects in Alberta.’

Alberta, Canada, and Venezuela have the world’s largest oilsands reserves.

The project will create about 60 new full-time refinery jobs and 75 additional full-time contract employee positions, Marathon said. The refinery currently has about 320 full-time workers and 160 full-time contract workers.

The upgrade is expected to be completed in 2010.

Shares rose 12 cents to $59.25 in aftermarket electronic trading. They closed at $59.13 in the regular session.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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