Jean-Claude Juncker (l) listens to Thierry Breton, French finance minister, before a Eurogroup meeting in Luxembourg on Monday. (AFP Photo)

LUXEMBOURG,
April 12--Eurozone finance ministers renewed a call Monday for Asian countries to make their exchange rates more flexible so that Europe does not bear the brunt of the euro’s strength, AFP reported.
They also emerged from a monthly meeting voicing concerns about the high oil prices, which are weighing heavily on eurozone growth.
The strength of the euro and soaring oil prices, two factors largely out of the control of finance ministers, have been raising concerns in European capitals.
Luxembourg Prime Minister Jean-Claude Juncker said he would bring those concerns to a meeting later this week in Washington of finance ministers from the Group of Seven (G7) richest nations. “We think that the volatility of exchange rates and the movements we sometimes observe are not healthy,“ he said. “We think that a certain number of Asian countries should take measures because the eurozone should not be the only zone to take the weight of (foreign exchange) adjustment,“ he added.
Eurozone countries are concerned that they are bearing much of the impact of the dollar’s current weakness, because many Asian currencies are either directly or indirectly pegged to the US currency.
That makes goods produced in the eurozone more expensive on global markets compared to products from both the United States and from Asian countries.
Juncker, who chaired Monday’s meeting, said that he would renew “word for word“ remarks he already made in London in February that excessive exchange rate volatility is “undesirable“ at the upcoming G7 meeting.
Juncker also said that he would call on the European Union’s executive commission to update a study on the impact of oil prices.
“The high price of oil is a concern for all of us“, said German Finance Minister Hans Eichel going into the meeting, calling on crude producers “to invest more“ in order to find more crude to bring to market.
Concerned about high oil prices and the strength of the euro, the European Commission last week cut its 2005 growth estimate for the eurozone to 1.6 percent from 2.0 percent.
European Central Bank president Jean-Claude Trichet, who was at the ministers’ meeting, is also growing alarmed about the eurozone economy, remarking last week that there were “no clear signs as yet of a strengthening in underlying dynamics“.

TOKYO, April 12--Top OPEC exporter Saudi Arabia will add about 500,000 barrels per day of new oil supply to markets next month after lifting crude sales to global oil majors and Asian refiners, industry sources said on Tuesday, Reuters reported Despite differences within OPEC over whether the extra oil is needed, Saudi Arabia will raise supplies to top Asian refiners and some global oil companies in May to full contractual volumes, erasing earlier cuts.
With the boost, Saudi Arabia now looks set to produce nearly 10 million bpd in May, up from an estimated 9.5 million bpd, as it forges ahead with efforts to build up global oil inventories in anticipation of stronger year-end oil demand.
That leaves it about 1 million bpd of spare capacity.
“We’re getting a lot more oil in May,“ said a source at one major Saudi customer. “They certainly seem to be pumping as much as they can.“
Asian buyers will be getting full contracted volumes for the first time since December, after which the kingdom cut supplies to the region by 10 percent. For some oil majors, it will be their first time they receive full supplies in two years.
US and European refiners were given steady supplies versus April at 20-30 percent below contracts, sources said on Monday.
With state-owned Saudi Aramco exporting about 3 million bpd of crude oil to refiners in Japan, South Korea, China and India, a 10 percentage point increase in supplies should add at least 300,000 bpd of fresh oil, industry sources say.
That total should rise taking into account smaller regional customers and a 10-percent-plus rise to oil majors, who lift about 2.0 million bpd on their own, traders said.
The higher allocations are the clearest sign yet that Saudi Arabia, which pumps over 11 percent of global oil supplies, is not waiting for OPEC’s full backing to take action. “This may cause ample supply in the market for the short term, but I think it’s healthy way for OPEC to increase their production before oil demand peaks in the fourth quarter,“ said a source at a South Korean refiner.
The Organization of the Petroleum Exporting Countries (OPEC) agreed to boost output by 500,000 bpd on March 16 and pledged a second such increase if prices stayed above $55.

WASHINGTON,
April 12--International financial leaders will gather here this week to analyze the impact of surging oil prices on global growth and efforts to relieve grinding poverty in the world’s poorest nations, AFP reported.
Finance ministers from the powerful Group of Seven nations will meet on Friday and Saturday, coinciding with the annual spring meetings of the International Monetary Fund and World Bank over the weekend.
Protestors demanding the cancellation of poor countries’ debt plan a series of events, but security can be expected to be as tight as ever in the US capital.
After 2004 saw global growth revive on the back of strong performances by the United States and China, the world economy faces several major risks, according to IMF chief Rodrigo Rato. He warned last week that the massive US trade deficit coupled with rising interest rates and high oil prices threaten to combine to derail growth this year.
The G7 meeting chaired by British Chancellor of the Exchequer Gordon Brown will see the United States press its European and Japanese partners for more policy action from their end.
“Secretary (John) Snow wants to underscore the need to achieve more robust global growth among industrial nations,“ said Rob Nichols, a spokesman for the US Treasury chief. “He also looks forward to talk about debt relief proposals,“ he said, adding, “The ministers will likely discuss the global energy prices.“
Snow is expected to renew pressure on China to revalue its yuan currency. For China to scrap its restrictive dollar peg and switch “towards a flexible exchange system is a very high priority for the Treasury,“ Nichols said.
China will be in attendance at the IMF-World Bank talks.
Rato warned that the high prices would shave between 0.25 and 0.5 percentage points off global economic growth this year. The IMF’s twice-yearly World Economic Outlook warns that high oil prices are here to stay.
Aside from wringing their hands over economic headaches ahead, the G7 ministers will resume debate on how to cut the estimated debt of $80 billion owed by the poorest nations to bodies such as the IMF and World Bank.

Kenyan boys from the sprawling Mukuru slums walk hand in hand through the narrow streets of the slum in Nairobi. (Reuters File Photo)

YAOUNDE, Cameroon, April 12--Developing countries must unite to change the balance of power in the world and face the challenges of globalization together, Brazil’s president said on Monday on the first leg of a five-nation African tour, Reuters reported.
President Luiz Inacio Lula da Silva has sought to expand ties with Africa, both to boost his profile as a developing world leader and to build on historical links between Brazil and Africa.
“There’s a need to reinforce South-South cooperation in the face of the challenges of globalization that confront particularly developing countries,“ a joint statement from Lula and Cameroon’s President Paul Biya said.
Brazil has also been at the forefront of a campaign at the World Trade Organization challenging US subsidies for cotton farmers and Brazilian companies are increasingly looking to Africa for business opportunities.
During his stay in Cameroon, Lula called for increased trade between developing countries to eradicate poverty and hunger. He also reiterated that poor nations should work together to end huge subsidies paid by rich countries to their farmers.
“We have to change the balance of power in the world,“ he said at a banquet in Cameroon on Sunday night. “We can no more continue to be passive spectators of decisions that have a direct effect on our destiny.“
Lula started his trip in the central African country of Cameroon on Sunday and landed in oil producer Nigeria on Monday evening. He was due to visit Ghana, former Portuguese colony Guinea-Bissau and Senegal Lula said he supported Africa’s drive for greater representation on the UN Security Council while Cameroon expressed support for Brazil’s bid to get a permanent seat.
Brazil and Cameroon signed accords on agriculture, fisheries, culture, sports and higher education but the details were not immediately available.

Combo of two computer generated images handed out by Airbus of an Airbus A350-800 (top) and by Boeing of the new Boeing 787 jet. (AFP Photo)

PARIS, April 12--The future Airbus A350 aircraft, designed to rival Boeing’s 787 Dreamliner, could be the first victim of a lengthy dispute between the European Union and the United States over state aid to the aeronautics sector, AFP reported.
Brussels and Washington failed to meet their self-imposed deadline Monday to achieve a negotiated agreement on subsidies to Boeing and Airbus. But both sides said they were willing to pursue talks.
The United States has bitterly opposed European plans to subsidize the A350 and has threatened to seek arbitration by the World Trade Organization (WTO) if the EU allows aid to the project before the end of bilateral negotiations.
The situation has stymied the European aircraft maker, which intended to ask its four participating countries-- Britain, France, Germany and Spain--for aid to finance the A350. The project cost is estimated at four billion euros ($5.19 billion).
The new member of the Airbus family was approved by Airbus shareholders European Aeronautic Defense and Space Company, which owns 80 percent, and BAE Systems of Britain, with a 20 percent stake.
Following the go-ahead, Airbus chief executive Noel Forgeard said in late December that he would seek reimbursable advances from participating countries of a maximum 33 percent of the total investment.
But an Airbus spokeswoman, questioned Monday about the date when Airbus would seek state aid for the A350, said, “For now, everything is suspended. Everyone is in a holding pattern.“ And the EU commission spokeswoman sidestepped a report in Monday’s Financial Times that the EU had offered to delay launch aid for the A350 to avoid what would be the biggest battle in the WTO’s history.
“If Airbus makes a request to (EU) member states for launch investment this is for member states to consider,“ she said.

BANGALORE, India, April 12--Indian industry officials have reacted cautiously to Chinese Premier Wen Jiabao’s call for closer ties on information technology.
Wen, touring India’s technology hub of Bangalore Sunday called for India and China to work together to launch the “Asian century“ of information technology. “Cooperation is just like two pagodas. One hardware and one software. Combined we can take the leadership position in the world,“ he said. But legal issues, language and cultural barriers and Beijing’s slant towards domestic firms were all hurdles to be overcome, Indian IT leaders said.
Subash Menon, chief executive of Subex Systems, an Indian telecom software firm with a sales office in Beijing, said the main question was whether the environment in China was conducive to doing business.
“Obviously the main issue is one of the legal structure. One is not sure at this point of time whether contracts with the Chinese firms will have legal protection. One has to watch how it evolves,“ Menon told AFP.
“Our main concern is to protect the intellectual property of our product. The Chinese law is not very clear on this. The other issue is that of language. There are not many English-speaking people out there,“ Menon said. “The only cultural commonality between India and China is patience. There are substantial differences in cultural values which compounds the problem,“ he said.
Virendra Agarwal, director and senior vice-president of Satyam Computer Services, India’s fourth-largest software exporter with three offices in China including Beijing, echoed Menon’s views and argued there was no synergy between India and China in technology. “China is not a straightforward country say like Singapore when it comes to business. You cannot pull out money or transfer it easily. One has to put in some capital and a firm cannot open branch offices with ease,“ Agarwal told AFP.

TOKYO, April 12--Japan’s Mitsubishi Heavy Industries Ltd. plans to develop the country’s first domestic passenger jet by March next year, according to a newspaper report published Tuesday, AFP reported. The nation’s largest heavy machinery maker plans to develop a regional jet that can seat 70-90 passengers and aims to conduct its maiden flight in 2008-09, the Nihon Keizai Shimbun said.
The plan is part of Japan’s national aviation project in which the government and the private sector are splitting the 50 billion yen ($463 million) development bill.
This five-year project, launched in fiscal 2003, has been conducting research with other firms, such as Fuji Heavy Industries Ltd.
Mitsubishi had initially envisioned a small craft that seats 30 to 50 people, but has decided to increase the size, judging that there would be little demand for such a small plane from major domestic airlines.
According to Japan Aircraft Development Corp., a Japanese aviation association, there will be worldwide demand for more than 3,000 jets that seat 60 to 99 passengers in about two decades, and the number of such planes in operation is expected to jump fivefold from the 2003 level.
Mitsubishi Heavy sees as its main customer the low-cost North American airlines, which have developed a business model based on frequent services using small aircraft on inter-city routes.