Source: <a href="https://www.cnbc.com/id/49070928">Mining Stocks: Which Ones Should You Avoid?</a>
Mining shares looked like those most precious of commodities last week, with the FTSE mining index jumping 18 percent in the week to Friday. 
<img loading="lazy" decoding="async" type="image" src="https://image.cnbcfm.com/api/v1/image/43974960-platinum_natural_200.jpg?v=1354732729&amp;w=1910&amp;h=1000" data-licensor-name="Wikipedia" width="1910" alt="Platinum" height="1000"></img>
But ongoing labor woes in South Africa, a key production center for many London-listed miners, have reminded investors of the risks of doing business in a region beset by political uncertainty.&nbsp; 
Mining shares are down by more than two percent on Tuesday, and few analysts see much scope of a near-term recovery, particularly for firms most exposed to South Africa.
That heaps even more pressure on Lonmin.&nbsp; The firm’s revenues are driven by platinum production at its Marikana mine, the site of the greatest social strife in the post-Apartheid era.&nbsp; Despite hints of constructive negotiations between managers and disgruntled workers today, most analysts see little upside for the battered mining company.
“The problem is that Marikana has always been a terrible, terrible mine,” said Ian Armstrong, an analyst at Brewin Dolphin, citing recurring safety issues at the site.&nbsp; “Lonmin has never really invested in it.”Anglo American, which holds a majority stake in Anglo Platinum, and Aquarius are also likely to lag the wider market. Striking workers have brought a halt to production at assets owned by both miners over the past several weeks. 
Petra Diamonds relies wholly on South African extraction, but could escape the wrath of investors, as its highly mechanized operations require comparatively little human capital, said Alison Turner, mining analyst at Panmure Gordon. 
The larger, more diversified mining companies Xstrata, BHP Billiton , Rio Tinto , and ENRC are more easily able to counter South African production disruption, and are unlikely to remain under pressure, analysts said.
But that’s assuming demand for commodities doesn’t fall off a cliff, they warned, citing concern over the larger-than-expected slowdown in the formerly resource-starved Chinese economy.&nbsp; It was the plunge in platinum prices, coupled with increased wage demands from Lonmin employees, that led to violence at the Marikana mine.
Despite plunging automobile sales — European registrations fell by nearly eight percent in August — some analysts believe that platinum prices may have bottomed. Platinum is a key component in catalytic converters.&nbsp; 
“Europe is difficult [for car sales],” said Ian Armstrong, analyst at Brewin Dolphin. “But in the U.S. we have QE3, which could possibly help demand, and we’re waiting for stimulus in China.”&nbsp; Growth in car sales in China has slipped to an annual rate of just three percent, he added, from a rate of over 20 percent in 2010/2011.
The reduced supply of platinum in the wake of production halts in South Africa should also put a floor under the price of the precious metal. “Suddenly people have said, ‘We can’t be short’ [of platinum] because we don’t know what’s going on with supply,” said Turner at Panmure Gordon, one of the few analysts who remains positive on Lonmin. 
Should platinum prices recover, Aquarius could benefit, which can increase production at its mine in Zimbabwe, said Armstrong. Brewin Dolphin is also touting the attraction of miners operating in other regions of Africa, namely Rangold Resources, which depends primarily on production out of Mali, and Centamin. “Both have very good production profiles,” said Armstrong. Last week, Centamin revealed a 40 percent increase in second quarter production from its main asset, a gold mine in Egypt.

Mining Stocks: Which Ones Should You Avoid?

Source: <a href="https://www.cnbc.com/id/49057136">Lonmin Promises New Approach to Mining Workers</a>
After a month of unrest, which has effectively shut down South Africa’s platinum sector and led to the deaths of 44 miners, mining companies and the South African Government have increased efforts to bring an end to the unrest.&nbsp; Police raided hostels at a Lonmin mine and confiscated machetes, spears and other weapons, while Lonmin has said it would adopt a more sensitive approach to the mineworkers. 
<img loading="lazy" decoding="async" type="image" src="https://image.cnbcfm.com/api/v1/image/35984866-mining_iron_ore_200.jpg?v=1354732729&amp;w=1910&amp;h=1000" data-licensor-name="Tim Graham | The Image Bank | Getty Images" width="1910" alt="Open cast mining for iron ore." height="1000"></img>
Talks on bringing an end to the strikewill resume on Monday. A pay-rise offer was rejected by workers last week, but the company says it could not meet workers’ higher wage demands.&nbsp; Acting Chief Executive Simon Scott said in an opinion piece published in the South African Sunday Times newspaper that it would adopt a “new approach” in labor relations.
Meanwhile Anglo American has announced that the company will resume operations at its Rustenburg platinum mines on Tuesday after production was suspended last Wednesday.&nbsp;&nbsp; The company said in a statement released on Sunday night that the situation has calmed down at the mine and “it will provide time for the Government to implement further security measures.”&nbsp; 
The dispute at Marikana has spread through the platinum sector and has raised fears of contagion to other sectors. Julius Malema, the expelled leader of the African National Congress (ANC) Youth League has called for a nationwide strike at mines.&nbsp; 
Senior Africa Forecaster at Exclusive Analysis Robert Besseling says, “Malema is tapping into widespread anger against the major unions affiliated to the Congress of South African Trade Unions,” which is allied to the ANC. He has essentially become the de facto leader of a campaign against President Jacob Zuma’s re-election at the party congress in December this year. 
Besseling is however of the opinion that it is unlikely that Malema’s incitement will trigger a nationwide uprising in the mining sector as he does not have the organizational structure following his expulsion from the ANC.&nbsp; 
The Institute for Security Studies (ISS) in Pretoria, South Africa said in a briefing that the opposition against Zuma’s re-election as President was gaining momentum.&nbsp; This “pro-change coalition” has agreed to back Zuma’s deputy, Kgalema Motlanthe with Tokyo Sexwale, presently a cabinet minister, as his deputy and has had informal meetings.&nbsp; The ISS says Mothlanthe has not disassociated himself from those lobbying on his behalf and is unlikely to accept the nomination if he does not think he has a strong chances of beating President&nbsp; Zuma. 
The Rand fell by 3 percent last week and Finance Minister Praving Gordhan said that labor unrest sweeping through South Africa’s mining sector could be “extremely damaging” for the economy. Robert Besseling from Exclusive Analysis says the risk of contagion of illegal action across the platinum and gold sectors will be high at least in the three months ahead.&nbsp; He believes that instances of unrest are likely to remain localized and sporadic, but coal and iron ore miners are also at high risk of contagion strikes.&nbsp;

Lonmin Promises New Approach to Mining Workers

Kelley Holland
Source: <a href="https://www.cnbc.com/id/49016077">Dollar Awaits Fed News, South African Rand Slides</a> 
<img loading="lazy" decoding="async" type="image" src="https://image.cnbcfm.com/api/v1/image/41461441-fx_fix_1_200.jpg?v=1354732729&amp;w=1910&amp;h=1000" data-licensor-name="" width="1910" alt="" height="1000"></img>
Fed meeting news awaits and Asian central banks stand pat &#8211; it&#8217;s time for your FX Fix.
Expectations of easing by the Federal Reserve sent the dollar lower. [CNBC]
New Zealand, Indonesia, the Philippines, and, surprisingly, South Korea, all elected to keep interest rates unchanged ahead of the upcoming Fed announcement. [CNBC]
Italy&#8217;s borrowing costs fell at its latest auction in the wake of the European Central Bank&#8217;s announcement of a bond buying plan, and Spain is getting sanguine about its problems. [CNBC]
The Australian and New Zealand dollars hovered close to multi-week highs ahead of a possible easing move by the Federal Reserve. [CNBC]
Concerns over industrial and political unrest in South Africa are sparking a selloff in the South African rand. [WSJ
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CURRENCY FUTURES:
Tune In: CNBC&#8217;s &#8220;Money in Motion Currency Trading&#8221; airs on Fridays at 5:30pm and repeats on Saturdays at 7pm. 
Learn more: The essential vocabulary for currency trading is on Key Currency Terms. Top strategies are broken down for you in Currency Class. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Talk back: Tell us what you want to hear about at moneyinmotion@cnbc.com.

Dollar Awaits Fed News, South African Rand Slides

Kelley Holland
Source: <a href="https://www.cnbc.com/id/48938506">Euro Lifts, Dollar Slips, Nonfarm Payrolls Loom</a> 
<img loading="lazy" decoding="async" type="image" src="https://image.cnbcfm.com/api/v1/image/41461441-fx_fix_1_200.jpg?v=1354732729&amp;w=1910&amp;h=1000" data-licensor-name="" width="1910" alt="" height="1000"></img>
The European Central Bank&#8217;s bond buying plan is a hit, and nonfarm payrolls await &#8211; it&#8217;s time for your FX Fix.
The euro hit a two-month peak as investors cheered the European Central Bank&#8217;s bond buying plan. [CNBC]
The bond buying plan also sent the euro close to a five-month high against the Swiss franc. [WSJ]
With a key employment report looming, and the potential for more quantitative easing, the dollar slipped. [FT]
Industrial production in the U.K. unexpectedly expanded in July, but the British pound was little changed against the dollar. [actionforex.com]
Latin American currencies gained as risk appetite improved on news of the European Central Bank&#8217;s bond buying intentions. [Reuters]
Model fund traders sold the dollar for the South African rand, making it the biggest gainer in a basket of emerging market currencies. [fin24.com]
&#8212;&#8212;&#8212;&#8212;&#8212;
CURRENCY FUTURES:
Tune In: CNBC&#8217;s &#8220;Money in Motion Currency Trading&#8221; airs on Fridays at 5:30pm and repeats on Saturdays at 7pm. 
Learn more: The essential vocabulary for currency trading is on Key Currency Terms. Top strategies are broken down for you in Currency Class. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
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Euro Lifts, Dollar Slips, Nonfarm Payrolls Loom

Source: <a href="https://www.cnbc.com/id/48824740">Lonmin Shares an Excellent Opportunity: Analyst</a>
London-based company Lonmin, the platinum mining firm affected by strikes at their Marikana facility in South Africa, is a definite opportunity for investors looking to enter the sector according to Alison Turner, mining analyst at Panmure Gordon.
“I think the company is being hit by a sort of triple whammy at the moment. With a combination of low (platinum) prices, the troubles they are having on the labor front and concerns over the balance sheet,” she told CNBC Wednesday. “All of that has been depressing the price, but I think that provides an excellent opportunity for long term investors to get in at the current price.”Forty-four people were killed, almost two weeks ago, after clashes and firing by police in a labor dispute at the mine. The South African government has recently announced that it wants to bring in external mediation to resolve disputes over pay and conditions.Lonmin’s shares dipped to their lowest since 2008 on August 20 due to the incident and have recovered little since. 
Shares on Wednesday traded at 617.14 pence, 37 percent lower than the start of the year. On the other hand, platinum prices have jumpedto three-and-a-half month highs last week on the supply disruption, and finished trading at $1515 on Tuesday. The metal is used in catalytic converters for cars and jewelry.
Meanwhile, an acting chief executive, Simon Scott, has replaced Ian Farmer who was hospitalized last week.
Turner estimates the problems at Lonmin’s mine will persist for six weeks and believes the new CEO’s first move could be to issue additional shares to raise new capital. A rights issue would dilute existing shareholders, but she said that shouldn’t be a concern for investors who wanted to enter the sector for the long term.“With little sign of an imminent return to work by striking rock drill operators, we have updated our Lonmin forecasts to build in a six week strike,” she said in a research note.
“That would make a September covenant breach almost unavoidable, and a rights issue increasingly likely,” she said, referring to the terms of the company’s bank loans.
It’s not only Lonmin where Turner sees value in platinum mining. She says the sector as a whole has been affected by the European financial crisis and could see a turnaround.“I think that provides an opportunity to get into platinum and see that longer term rise,” she told CNBC.“I think you’ve got some of the other commodities where that’s not the case, where the prices are, by historical standards, actually very high at the moment.”
Disclosures:
Alison Turner or Panmure Gordon has no corporate involvement with and no shareholdings in any with any of the companies mentioned in this article.

Lonmin Shares an Excellent Opportunity: Analyst

Source: <a href="https://www.cnbc.com/id/48810762">South Africa Considers External Mediation as Mining Troubles Spread</a>
Following the on-going violence at operations of the world’s third-largest platinum producer Lonmin, the South African government wants to bring in external mediation to resolve disputes over pay and conditions of mining workers, Susan Shabangu, mines minister for the country, told CNBC Africa on Tuesday.
“We have to find a mechanism to deal with the matter…and we consider bringing in external mediation,” Shabangu said.
Forty four people were killed in a labor disputeat Lonmin’s Marikana mine near Johannesburg, South Africa nearly two weeks ago. Since then, Lonmin’s operations have been suspended by a strike among around 3,000 workers, and the company said Tuesday that only 8 percent of its workers had reported for duty so far.
The South African minister said that in a meeting with the country’s labor minister last week it was decided that the various unions will be pulled together in a way that wouldn’t undermine the process of collective bargaining. She said the companies should also come together so as not to undercut each other. 
“The platinum sector has to come together and has to stop working in isolation and competing,” Shabangu said.
Robert Besseling, senior Africa forecaster at Exclusive Analysis, told CNBC the problems in the Marikana mine are far from over. “The fact that only 1 in 10 workers returned to work on Monday shows how the unions have lost complete control over the situation,” he said.
Besseling forecasts that the situation can extend throughout the next three months and has warned his clients about the possible risk of contagion to other mining projects in South Africa.&nbsp; 
High levels of intimidation were also reported at Solidarity, a trade union which represents skilled workers, and workers at another South African mine run by Eastern Platinum were reportedly blocked from going to work on Monday by colleagues, according to the National Union of Mineworkers. 
The violence is the result of a bloody turf war between the dominant National Union of Mineworkers (AMCU) and the small but militant Association of Mineworkers and Construction Union (AMCU), which has been gaining ground in South Africa’s mining sector. 
By Liza Jansen, special for CNBC.com / Twitter: @lizajansen

South Africa Considers External Mediation as Mining Troubles Spread

Source: <a href="https://www.cnbc.com/id/48763161">Mining Strikes Could Spread to Anglo American</a>
One of the world’s largest mining groups, Anglo American, could see its platinum production also affected by striking workers, according to trading company Vincom Commodities.
<img loading="lazy" decoding="async" type="image" src="https://image.cnbcfm.com/api/v1/image/43974960-platinum_natural_200.jpg?v=1354732729&amp;w=1910&amp;h=1000" data-licensor-name="Wikipedia" width="1910" alt="Platinum" height="1000"></img>
Group president Anil Kumar told CNBC Thursday that contagion could spread to other mines after a strike last week after clashes and firing by police on striking workers at the Lonmin mine in South Africa left 44 people dead.“It is a strike that we think will have a contagion effect, so Anglo [American], which does almost 45 percent of the world’s platinum, is next in the queue,” Kumar said.“Can you imagine 45 percent of the world’s production and then suddenly you cannot deliver?”On Thursday platinum gained another 1.1 percent, rising for a sixth day to a three-and-a-half month high.Kumar accepts the platinum price rise is temporary, due to the ongoing tensions, and says there aren’t any fundamental reasons for the increase.“If Anglo [American] gets sucked into this problem then the price could shoot up further,” he said.
Vincom Commodities said in a research note that it estimates the loss of production at the Marikana facility to be around 8,000 ounces so far.
Based on information it has received, Vincom believe that it will take a further four weeks to resolve the issue thus bringing a maximum production loss of 40-50,000 ounces to Lonmin&#8217;s yearly stock.
Kumar wasn&#8217;t sure that the current surplus in the system could handle the halt in production.
“We have 250,000 [ounces], but 250,000 [ounces] is only about a month’s production. So if the major mines shut down it will be a huge problem,” he said. 
Kumar said that if the mining industry conceded to the demands of the workers then the average wage for mine workers would rise to $1500 (12,500 rand) a month from $482 (4000 rand).
Kumar foresees a problem for the sector because the wage rises would have to be introduced industry-wide and platinum has typically been trading below its cost price before the recent increase.London-based company Lonmin accounts for 12 percent of global platinum output. Just over a quarter of their workers returned to the mine on Monday with the firm threatening to sackworkers if they didn’t show.According to Reuters, Lonmin officials said the clashes last week were between the National Union of Mineworkers (NUM) and the Association of Mineworkers and Construction Union (AMCU).The rival unions had also caused the closure of the world&#8217;s largest Impala platinum mine for six weeks earlier this year.A day of mourning was held on Thursday in South Africa. The Lonmin mine ceased operation for the day as workers were expected to gather to remember their colleagues who were killed.Lonmin told CNBC that the situation is currently peaceful and no incidents occurred overnight.

Mining Strikes Could Spread to Anglo American

Catherine Boyle
Source: <a href="https://www.cnbc.com/id/48739050">Troubled Merger and Violent Protests Hit Miners</a>
The health of the mining sector has come into sharper focus in recent weeks, with deadly disturbances in South Africa and ongoing concerns about commodity prices denting the sector and the cloud hanging over the sector is unlikely to blow away quickly.
“We now have more resource nationalism in countries that own the assets. That’s changed the view on how much money is left over for mining companies,” Neil Dwane, chief investment officer, Europe at Allianz Global Investors, told CNBC Europe’s “Squawk Box” Tuesday.
“We’re now in the zone where African countries are thinking we’ve got to make sure we get money out for our economy on the way through.”
The price of some of those assets, such as copper and iron ore has dropped recently amid concerns about falling demand as economic growth slowsfrom Beijing to Brooklyn.
“We don’t believe the commodity boom is over,” Rupert Nathan, head of fund management at Fat Prophets, told CNBC. “This is merely a cyclical retrenchment within a long-term super-cycle. Draw a line in the sand. If you’re positive you would look over the horizon and buy the assets.” 
One of the biggest focal points for the sector is commodities trader Glencore’s 30 billion pound ($47 billion) all-share takeover bid for Xstrata. 
Ivan Glasenberg, chief executive of Glencore , told reporters after the trader reported a 25 percent drop in first-half earnings, that the deal was not a &#8220;must-do&#8221; for the company at the moment, and it could return to the offer in the future. The current offer is for 2.8-times earnings and Qatar Holdings, Xstrata’s second-largest shareholder after Glencore, wants 3.25-times earnings.
“Glencore are incredibly good poker players, so they’re not going to show their hands,” Rupert Nathan, head of fund management at Fat Prophets, told CNBC. He added that the Glencore bid would not be successful at its current level and argued that Glencore should offer about 3.4 times earnings to secure the deal.
“We feel that this is pivotal to any future strategy, and based on that premise this is a must-do deal for Glencore,” he said.
In contrast, analysts at Macquarie said in a recent note that Glencore shouldn&#8217;t pay more than 2.9- to 3-times earnings.
Xstrata’s management have faced criticism over the deal — particularly the bumper pay package lined up for the company’s Chief Executive Mick Davis if it goes through.
“For me to get back in (to Xstrata), I’d need to see wholesale changes to the board and management,”&nbsp; Dwane said.
Xstrata is also likely to face pressure after Lonmin, in which it owns a 25 percent stake, has seen a steep drop in its value after a dispute with workers at one of its South African platinum mines ended tragically last week. Forty-four people killed and dozens more injured in clashes between police and protestors. 
“We are convinced that this is an escalation of a deeply embedded problem with the South African mining sector. We are unlikely to see any lower risk going forward, despite government efforts,” Robert Besseling, senior Africa forecaster at Exclusive Analysis, told CNBC’s “Worldwide Exchange” Tuesday.
The relatively new Association of Mineworkers and Construction Union (AMCU) has spearheaded the strikes by rock drillers which led to the violence. One key demand of the strikers is a tripling of their pay – currently around $500 a month.
“We have warned our clients of contagion risks to other platinum mines such as those of Aquarius and Impala Platinum where the AMCU union is recruiting, and there’s the risk of further violence.”
The AMCU could accelerate its recruitment to other sectors, according to Besseling. Both the AMCU and its larger rival the National Union of Mineworkers have “lost control” of the situation, he added.
Lonmin is in danger of breaching its loan covenants as early as September if the halt to production continues, according to Christopher Nicholson, analyst at Morgan Stanley.
This will add credence to reports that management are considering fundraising of up to $1 billion to keep the company going through the dispute.
“We believe that management will take action well before this risk becomes pressing as they have previously highlighted a number of potential financing options in the near term,” Nicholson, who has an equal-weight rating on the stock, wrote in a research note Tuesday.
He said that Lonmin’s net debt is likely to exceed 4-times earnings if 3 to 4 weeks of production is lost as a result of the strike. This makes it increasingly important for the company to resolve the dispute as this is the covenant placed on its $700 million syndicated loan facility, which is due to be tested on September 30.

Troubled Merger and Violent Protests Hit Miners

Catherine Boyle
Source: <a href="https://www.cnbc.com/id/48738644">Troubled Merger and Violent Protests Hit Miners</a>
The health of the mining sector has come into sharper focus in recent weeks, with deadly disturbances in South Africa and ongoing concerns about commodity prices denting the sector and the cloud hanging over the sector is unlikely to blow away quickly.
“We now have more resource nationalism in countries that own the assets. That’s changed the view on how much money is left over for mining companies,” Neil Dwane, chief investment officer, Europe at Allianz Global Investors, told CNBC Europe’s “Squawk Box” Tuesday.
“We’re now in the zone where African countries are thinking we’ve got to make sure we get money out for our economy on the way through.”
The price of some of those assets, such as copper and iron ore has dropped recently amid concerns about falling demand as economic growth slowsfrom Beijing to Brooklyn.
“We don’t believe the commodity boom is over,” Rupert Nathan, head of fund management at Fat Prophets, told CNBC. “This is merely a cyclical retrenchment within a long-term super-cycle. Draw a line in the sand. If you’re positive you would look over the horizon and buy the assets.” 
One of the biggest focal points for the sector is commodities trader Glencore’s 30 billion pound ($47 billion) all-share takeover bid for Xstrata. 
Ivan Glasenberg, chief executive of Glencore , told reporters after the trader reported a 25 percent drop in first-half earnings, that the deal was not a &#8220;must-do&#8221; for the company at the moment, and it could return to the offer in the future. The current offer is for 2.8-times earnings and Qatar Holdings, Xstrata’s second-largest shareholder after Glencore, wants 3.25-times earnings.
“Glencore are incredibly good poker players, so they’re not going to show their hands,” Rupert Nathan, head of fund management at Fat Prophets, told CNBC. He added that the Glencore bid would not be successful at its current level and argued that Glencore should offer about 3.4 times earnings to secure the deal.
“We feel that this is pivotal to any future strategy, and based on that premise this is a must-do deal for Glencore,” he said.
In contrast, analysts at Macquarie said in a recent note that Glencore shouldn&#8217;t pay more than 2.9- to 3-times earnings.
Xstrata’s management have faced criticism over the deal — particularly the bumper pay package lined up for the company’s Chief Executive Mick Davis if it goes through.
“For me to get back in (to Xstrata), I’d need to see wholesale changes to the board and management,”&nbsp; Dwane said.
Xstrata is also likely to face pressure after Lonmin, in which it owns a 25 percent stake, has seen a steep drop in its value after a dispute with workers at one of its South African platinum mines ended tragically last week. Forty-four people killed and dozens more injured in clashes between police and protestors. 
“We are convinced that this is an escalation of a deeply embedded problem with the South African mining sector. We are unlikely to see any lower risk going forward, despite government efforts,” Robert Besseling, senior Africa forecaster at Exclusive Analysis, told CNBC’s “Worldwide Exchange” Tuesday.
The relatively new Association of Mineworkers and Construction Union (AMCU) has spearheaded the strikes by rock drillers which led to the violence. One key demand of the strikers is a tripling of their pay – currently around $500 a month.
“We have warned our clients of contagion risks to other platinum mines such as those of Aquarius and Impala Platinum where the AMCU union is recruiting, and there’s the risk of further violence.”
The AMCU could accelerate its recruitment to other sectors, according to Besseling. Both the AMCU and its larger rival the National Union of Mineworkers have “lost control” of the situation, he added.
Lonmin is in danger of breaching its loan covenants as early as September if the halt to production continues, according to Christopher Nicholson, analyst at Morgan Stanley.
This will add credence to reports that management are considering fundraising of up to $1 billion to keep the company going through the dispute.
“We believe that management will take action well before this risk becomes pressing as they have previously highlighted a number of potential financing options in the near term,” Nicholson, who has an equal-weight rating on the stock, wrote in a research note Tuesday.
He said that Lonmin’s net debt is likely to exceed 4-times earnings if 3 to 4 weeks of production is lost as a result of the strike. This makes it increasingly important for the company to resolve the dispute as this is the covenant placed on its $700 million syndicated loan facility, which is due to be tested on September 30.

Kelley Holland
Source: <a href="https://www.cnbc.com/id/48645283">FX Roundup: Dollar Slips, Yen Dips, ECB Hopes Boost Euro</a> 
<img loading="lazy" decoding="async" type="image" src="https://image.cnbcfm.com/api/v1/image/41461441-fx_fix_1_200.jpg?v=1354732729&amp;w=1910&amp;h=1000" data-licensor-name="" width="1910" alt="" height="1000"></img>
Weak growth hits the yen and some African nations want to oust the buck: it&#8217;s time for your FX Fix.
The dollar came under pressure from expectations of central bank stimulus (explain this)and European Central Bank support for the euro zone. [CNBC]
Hopes for European Central Bank action nudged the euro higher. [CNBC]
Weaker than expected quarterly growth in Japan prompted talk of possible interest rate cuts and sent the yen lower. [FT]
A milder than expected decline in Greek GDP and a weak U.K. business confidence report sent the euro higher against the British pound. [fxstreet.com]
Several African nations are trying to strengthen their thinly traded currencies by taking steps to curb the local use of dollars, including threats of jail time. [WSJ]
&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-
CURRENCY FUTURES:
Tune In: CNBC&#8217;s &#8220;Money in Motion Currency Trading&#8221; airs on Fridays at 5:30pm and repeats on Saturdays at 7pm. 
Learn more: The essential vocabulary for currency trading is on Key Currency Terms. Top strategies are broken down for you in Currency Class. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Talk back: Tell us what you want to hear about at moneyinmotion@cnbc.com.

FX Roundup: Dollar Slips, Yen Dips, ECB Hopes Boost Euro

Daniel Bukszpan
Source: <a href="https://www.cnbc.com/2012/08/03/Where-the-Wall-Street-Companies-Are-Moving.html">Where the Wall Street Companies Are Moving</a> 
Where the Wall Street Companies Are Moving<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/48472218-Cover-Wall-Street-Firms-Moving.jpg?v=1349480450&amp;w=1910&amp;h=1000" data-licensor-name="Leland Bobbe | Stone | Getty Images" width="1910" alt="On July 1, published an called “Financial Giants Are Moving Jobs Off Wall Street.” It detailed an emerging trend in which major Wall Street companies are taking swaths of on-site mid-level jobs and relocating them to less expensive locations in the U.S. This phenomenon is known as “near-shoring.”It’s easy to understand the rationale. The terrorist attacks of Sept. 11, 2001, the financial crisis of 2008 and the Dodd–Frank Act of 2010 had a cumulative effect on many of these companies’ bottom li" height="1000"></img>
The New York Times recently published an articletitled “Financial Giants Are Moving Jobs Off Wall Street.” It detailed an emerging trend in which major Wall Street companies are taking swaths of on-site mid-level jobs and relocating them to less expensive locations. This phenomenon is known as “near-shoring.”It’s easy to understand the rationale. The terrorist attacks of Sept. 11, 2001, the financial crisis of 2008 and the Dodd–Frank Act of 2010 have had a cumulative effect on many of these companies’ bottom lines, causing them to move much of Wall Street away from Wall Street in the name of lower overhead and reduced payroll costs.While this turn of events might make Alexander Hamilton spin in his grave, it’s been a boon to other cities and states not traditionally thought of as financial hubs. It’s brought jobs and much-needed revenue to low-key places that have welcomed the infusion of business with open arms, tax incentives and cheaper real estate.Which locations have Wall Street companies chosen for their mid-level operations? Read ahead to find out.By Daniel BukszpanPosted 3 August 2012
Wilmington, Del.<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/48472227-Wilmington-DE-Wall-Street-Firms-Moving.jpg?v=1349480450&amp;w=1910&amp;h=1000" data-licensor-name="Panoramic Images | Getty Images" width="1910" alt="On April 13, Delaware Gov. Jack Markell and Delaware Economic Development Office Director Alan Levin announced an infusion of into their state. The jobs came courtesy of an expansion plan by JPMorgan Chase, which already had thousands of jobs in Wilmington, the state’s largest city." height="1000"></img>
On April 13, Delaware Gov. Jack Markell and Delaware Economic Development Office Director Alan Levin announced an infusion of 1,200 jobs into their state. The jobs came courtesy of an expansion plan by JPMorgan Chase, which already had thousands of jobs in Wilmington, the state’s largest city.The Delaware Strategic Fund gave JPMorgan a $10 million grant for the expansion. Gordon Smith, the former CEO of card services, auto finance and student lending businesses for the company, said Markell’s administration had fostered a positive climate for the company. “JPMorgan Chase has a long and rich history here in Delaware and it is a great place to do business.”
Jersey City, N.J.<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/48472223-Jersey-City-NJ-Wall-Street-Firms-Moving.jpg?v=1349480450&amp;w=1910&amp;h=1000" data-licensor-name="Driendl Group | The Image Bank | Getty Images" width="1910" alt="Knight Capital Group, which attracted a massive amount of unwanted attention after what it called a on Aug. 1 triggered unintended trades in scores of companies and resulted in the loss of millions of dollars, has corporate offices in Jersey City. Knight Capital also maintains two offices in Manhattan -- at Exchange Plaza, adjacent to Wall Street and on Park Avenue in midtown.Another company that’s moving some of its operations to the other side of the Hudson River is the Depository Trust and C" height="1000"></img>
Depository Trust and Clearing Corp. is among the many Wall Street companies&nbsp;that have moved&nbsp;some&nbsp;operations to the other side of the Hudson River. The company, based&nbsp;on Water Street in Lower Manhattan,&nbsp;recently announcedplans to relocate 1,600&nbsp;of its employees to Jersey City at the beginning of 2013.Another company with corporate offices in Jersey City is Knight Capital Group, which&nbsp;also maintains&nbsp;offices in Manhattan — at Exchange Plaza, adjacent to Wall Street, and on Park Avenue in midtown. (The company attracted&nbsp;unwanted attention after what it called a technology problemon Aug. 1 triggered unintended trades in scores of companies and resulted in the loss of millions of dollars.)
Dallas<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/48472221-Dallas-TX-Wall-Street-Firms-Moving.jpg?v=1349480450&amp;w=1910&amp;h=1000" data-licensor-name="Jeremy Woodhouse | The Image Bank | Getty Images" width="1910" alt="The Lone Star State has seen steady increases in financial sector employment, with a in such jobs since 2000. One major Texas city that continues to see this type of job growth is Dallas.According to the Bureau of Labor Statistics, Dallas’ local financial activities sector added between April 2011 and 2012. One of the many financial companies operating there is Goldman Sachs, which maintains an office at 100 Crescent Court in Dallas." height="1000"></img>
The Lone Star State has seen steady increases in financial sector employment, with a 56 percent increasein such jobs since 2000. One major Texas city that continues to see this type of job growth is Dallas.According to the Bureau of Labor Statistics, Dallas’ local financial activities sector added 6,900 jobsbetween April 2011 and 2012. One of the many financial companies operating there is Goldman Sachs, which maintains an office at 100 Crescent Court in Dallas. 
Bangalore, India<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/48472216-Bangalore-India-Wall-Street-Firms-Moving.jpg?v=1349480450&amp;w=1910&amp;h=1000" data-licensor-name="David H. Wells | Photodisc | Getty Images" width="1910" alt="In addition to its Dallas office, Goldman Sachs maintains a presence all over the U.S., including in such cities as Boston, Chicago and Los Angeles. It also maintains a presence in such international locations as Europe, Africa, Asia and the Middle East.Bangalore, India, was one of the cities that accounted for of the company’s hires in 2011 and 2012, according to" height="1000"></img>
In addition to its Dallas office, Goldman Sachs maintains a presence all over the U.S., including in such cities as Boston, Chicago and Los Angeles. It also maintains a presence in such international locations as Europe, Africa, Asia and the Middle East.Bangalore, India, was one of the cities that accounted for more than a thirdof the company’s hires in 2011 and 2012, according to The New York Times.
Salt Lake City<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/48472225-Salt-Lake-City-UT-Wall-Street-Firms-Moving.jpg?v=1349480450&amp;w=1910&amp;h=1000" data-licensor-name="Robert Glusic | Digital Vision | Getty Images" width="1910" alt="According to the Goldman Sachs’ workforce in the New York area has remained By contrast, its Salt Lake City office has grown to 1,400 employees, making it the company’s sixth-largest office worldwide.Utah Gov. Gary Herbert the company receives economic incentives for operating in his state. &quot;If you come and create economic expansion, you create a thousand jobs, you put more revenue into our income tax coffers, we will reward you by giving some of that money back,&quot; he said. &quot;Lloyd Blankfein, C" height="1000"></img>
According to the Times, Goldman Sachs’ workforce in the New York area has remained flat for three years.By contrast, its Salt Lake City office has grown to 1,400 employees, making it the company’s sixth-largest office worldwide.Utah Gov. Gary Herbert saidthe company receives economic incentives for operating in his state. &#8220;If you come and create economic expansion, you create a thousand jobs, you put more revenue into our income tax coffers, we will reward you by giving some of that money back,&#8221; he said.
Jacksonville, Fla.<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/48472222-Jacksonville-FL-Wall-Street-Firms-Moving.jpg?v=1350683098&amp;w=1910&amp;h=1000" data-licensor-name="John Coletti | Photographerâ€™s Choice | Getty Images" width="1910" alt="Deutsche Bank’s New York City is at 60 Wall Street. Like many other financial companies, 2009 was a rough year that saw cuts of to its workforce. At the same time, staffing at its Jacksonville, Fla., office increased from 600 to 1,000.The office, which opened in 2008, is the site for many of the company’s operations, technology and legal positions. Recently, traders with direct client contact began working there." height="1000"></img>
Deutsche Bank’s U.S. headquarters is at&nbsp;60 Wall Street. Like many other financial companies, 2009 was a rough year that saw cuts of 500 jobsto its workforce. At the same time, staffing at its Jacksonville, Fla., office increased from 600 to 1,000.The office, which opened in 2008, is the site for many of the company’s operations, technology and legal positions. Recently, traders with direct client contact began working there.
Research Triangle, N.C.<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/48472224-Research-Triangle-Park-NC-Wall-Street-Firms-Moving.jpg?v=1349480450&amp;w=1910&amp;h=1000" data-licensor-name="Ildar Sagdejev | Creative Commons" width="1910" alt="The Research Triangle area, also known as Raleigh-Durham-Chapel Hill, has been home to many financial sector jobs in recent years. These jobs used to be in the Manhattan offices of Deutsche Bank and Credit Suisse, but those institutions moved many of them south.Apart from the cheaper real estate and workforce costs, there were other reasons for financial companies to move operations there. According to the state of North Carolina gave Credit Suisse in incentives in exchange for setting up shop" height="1000"></img>
The Research Triangle area, also known as Raleigh-Durham-Chapel Hill, has been home to many financial sector jobs in recent years. These jobs used to be in the Manhattan offices of Deutsche Bank and Credit Suisse, but those institutions moved many of them south.Apart from the cheaper real estate and workforce costs, there were other reasons for financial companies to move operations there. According to The New York Times, the state of North Carolina lured&nbsp;Credit Suisse with $14 millionin incentives.
Boca Raton, Fla.<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/48472217-Boca-Raton-FL-Wall-Street-Firms-Moving.jpg?v=1349480450&amp;w=1910&amp;h=1000" data-licensor-name="Education Images | UIG | Getty Images" width="1910" alt="The Bank of New York was founded by Alexander Hamilton in 1784. It’s hard to have deeper roots in the financial culture of Lower Manhattan than this institution’s. In 2007, it merged with the Mellon Financial Corporation and became BNY Mellon.The company, headquartered at 1 Wall Street, has many locations around the U.S., including in Florida. Boca Raton is the site of one of the company’s numerous offices. It also has wealth management offices in Fort Lauderdale, Miami and Tampa." height="1000"></img>
The Bank of New York was founded by Alexander Hamilton in 1784. It’s hard to have deeper roots in the financial culture of Lower Manhattan than this institution’s. In 2007, it merged with the Mellon Financial Corporation and became BNY Mellon.The company, headquartered at 1 Wall Street, has many locations around the U.S., including in Florida. Boca Raton is the site of one of the company’s numerous wealth managementoffices. Others are&nbsp;in Fort Lauderdale, Miami and Tampa.

Where the Wall Street Companies Are Moving

Kelley Holland
Source: <a href="https://www.cnbc.com/id/48255439">Euro Slips, Investors Reach for Yield</a> 
<img loading="lazy" decoding="async" type="image" src="https://image.cnbcfm.com/api/v1/image/41461441-fx_fix_1_200.jpg?v=1354732729&amp;w=1910&amp;h=1000" data-licensor-name="" width="1910" alt="" height="1000"></img>
Aid to Spain leaves the euro in pain and commodity prices lift the loonie &#8211; it&#8217;s time for your Friday FX Fix.
The euro slipped, and looked vulnerable to more losses, on worries about Spain&#8217;s fiscal problems.[CNBC]
Euro zone finance ministers are formally approving Spain &#8216;s banking sector bailout packagetoday. [BBC.com]
Yield-hungry investorsare taking the Australian and New Zealand dollars to new heights. [CNBC]
Strong commodity pricesand demand for yield pushed the Canadian dollar to a two-month high against the U.S. dollar and a record high against the euro. [Reuters]
The yuan hit the bottom of its trading band as companies, concerned about the Chinese economy, continued to buy dollars. [FT]
The South African rand looked poised for more weakness after falling on Thursday&#8217;s interest rate cut.[WSJ]
&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-
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Euro Slips, Investors Reach for Yield

Karina Frayter
Source: <a href="https://www.cnbc.com/id/48201152">Think Cities, Not Countries When Looking for Growth</a>
Companies looking to ride a new wave of growth in the emerging markets should shift their focus from countries to cities, says a recent report from McKinsey Global Institute. 
<img loading="lazy" decoding="async" type="image" src="https://image.cnbcfm.com/api/v1/image/48200175-bangladesh-dhaka-street-200.jpg?v=1347772619&amp;w=1910&amp;h=1000" data-licensor-name="Tomohiro Ohsumi | Bloomberg | Getty Images" width="1910" alt="Pedestrians and rickshaws move along a street in the Old Market of Dhaka, Bangladesh." height="1000"></img>
According to the report entitled “Urban World: Cities and the Rise of the Consuming Class”, almost half of global economic growth by 2025 is expected to come from just 440 cities across emerging markets. In fact, these cities will generate 60 percent of new urban consumers who are projected to inject some $23 trillion into the world economy. 
“Incomes are rising in developing economies faster, and at a greater scale, than at any previous point in history”, says the report. “The growth of some urban markets can exceed that of entire nations.” 
There are 20 megacities among the so-called Emerging 440 group, like Shanghai in China, Sao Paulo in Brazil and Lagos in Nigeria. However, to reap the benefits of the urbanization boom it is important for companies to look beyond high-profile places, notes the report. 
A large share of growth in the emerging economies will come from mid-sized cities that are not well-known outside their own countries. Among them: Belo Horizonte in Brazil, Pune in India, Angola’s capital Luanda and Kumasi in Ghana, to name just a few. 
“We expect these middleweights to grow at an 8 percent annual compound rate, contributing $17.7 trillion in GDP growth by 2025,” says the report. 
Out of 440 cities in the group, 242 are located in China. Latin America has 57 cities in the group; South Asia, including India, has 36 cities, while Africa and Middle East together have 39 cities. 
Presently, most companies are not looking at cities as they calibrate strategy. 
McKinsey says fewer than one in five executives is making location and resource decisions at the city, rather than at the country, level. Of those surveyed, 61 percent say their executives do not plan at the city level because &#8220;cities are perceived as irrelevant unit of strategic planning&#8221;.&nbsp;&nbsp; 
But the report argues it is important to have a detailed understanding of an individual urban area. Growth patterns for products and services will depend in part on income trends, as well as cultural and demographic characteristics. 
For instance, manufacturers and suppliers of medical devices may want to focus on cities with a large increase in elderly higher-income consumers, suggests the report. The top three cities that are expected to see the most growth in this segment by 2025 are Shanghai, Beijing and Tokyo. 
The report also examined developed markets, like Japan, Europe and the U.S., but most of the growth was expected to be from the cities of the emerging markets.
Producers or distributors of laundry-care products will like Sao Paulo, Brazil. Over the next 10 years, a larger volume of these products will be sold in this single city than in either France or Malaysia. 
To cater to the needs of new urban consumers, cities will have to invest heavily in infrastructure. Thus, companies providing project management or construction services for water infrastructure may want to look at cities with high expected growth in municipal water demand — like Mumbai and Delhi. 
Questions? Comments? Email us at marketinsider@cnbc.com and follow me on twitter @kfrayter 
Disclaimer

Think Cities, Not Countries When Looking for Growth

Christina Cheddar Berk
Source: <a href="https://www.cnbc.com/id/47783792">The Best New Markets for Retailers Will Surprise You</a>
With anemic growth in the U.S. and Europe, retailers are increasingly turning to less developed and smaller markets for their expansion, according to an A.T. Kearney report.
<img loading="lazy" decoding="async" type="image" src="https://image.cnbcfm.com/api/v1/image/47784309-the-dubai-mall-indoor-200.jpg?v=1347772605&amp;w=1910&amp;h=1000" data-licensor-name="Gabriela Maj | Bloomberg | Getty Images" width="1910" alt="Stores are seen surrounding an atrium inside the Dubai Mall." height="1000"></img>
“Global expansion is no longer a ‘nice to have’ but a ‘must’ to overcome slowing growth in core markets,” said Hana Ben-Shabat, a partner at the global management consulting company and co-leader of the study. 
While that might not be so surprising, some of retail&#8217;s most promising new markets probably are not the ones you first think about. These newer markets include countries such as Botswana, Georgia, Oman, Mongolia and Azerbaijan. 
Each year, A.T. Kearney ranks the top 30 developing countries for global retail expansion. This year, Brazil grabbed the top spot for the second-straight year. Brazil, a long-time promising emerging market, has been bustling with preparations for the World Cup and the Olympics. All that activity has played a role in helping to drive a growing middle-class economy. With more disposable income and a young population that is concentrated in urban areas, the conditions are ripe for retailers. 
But it is the inclusion of Botswana, which ranked 20th, which may be one of the most interesting developments to come out of this year&#8217;s research. 
(To see which countries are in the top 10, read our slideshow, which ranks the hottest emerging markets for retailers in the study.)
Ben-Shabat said the inclusion of Botswana on this year&#8217;s list is a sign that there could be more growth ahead in sub-Saharan Africa. As business in the region becomes less risky, it could become very favorable to retailers, she said. 
One reason is that Nigeria, Ethiopia and the Democratic Republic of the Congo are expected to be among the world&#8217;s most populous countries by 2050.
“The level of risk in the region is still very high, but as they get more developed and stabilized, there will be more retail development,” she said. 
Another emerging trend is that international expansion is not just a “Big Guys” game anymore, Ben-Shabat said. Sure, large players such as Wal-Martand Carrefour are expanding their businesses, but so are specialty retailers such asGap, Build-a-Bear, and Sephora. Ecommerce is becoming an important way to test new markets and build a brand in other countries. 
And as the rising fortunes of countries such as Georgia, Oman, Azerbaijan and Mongolia show, bigger isn’t always better. Each of those countries debuted in A.T. Kearney’s Global Retail Development Index this year. In these smaller markets, retailers can benefit from the unsaturated nature of the retail landscape. Instead of finding other large international retail brands, retailers find smaller, more fragmented local retailers. 
Also, retailers will often find that these newer markets have very concentrated pockets of wealth, which makes it easier to target key consumers. And in emerging markets, the difference between the spending power of the poor and the wealthy can be wide, which makes these countries valuable for luxury retailers, despite their relatively low GDP per capita figures, according to Ben-Shabat. 
“The big message is there are small countries and big countries and small retailers and big retailers who are engaging in global expansion,” she said. 
Of course, global expansion can be risky. Take last year&#8217;s Arab Spring. Turmoil in the Middle East hurt the rankings of several countries in the region, including Lebanon, Morocco and Tunisia. However, international retailers are finding ways to minimize their risk. 
According to A.T. Kearney, there have been fewer exits from countries since 2010, which may be a sign that retailers are refining their strategies.

Questions? Comments? Email us at consumernation@cnbc.com. Follow Christina Cheddar Berk on Twitter @ccheddarberk.

The Best New Markets for Retailers Will Surprise You

Source: <a href="https://www.cnbc.com/id/47613911">Mugabe Was Not Given Any Tourism Title: UN Agency</a>
A United Nations agency said Wednesday that it has not appointed Zimbabwean President Robert Mugabe as an official representative for tourism, refuting several newspaper reports that sparked outrage in the United Kingdom.
Sandra Carvão, communications coordinator for the UN World TourismAgency, told CNBC that Mugabe has not received a title from the UN, even pointing out that there is no official UN travel ambassador program.
Mugabe and his ally, Zambian president Michael Sata, were present at Victoria Falls on Tuesday in a ceremony led by the UN World Trade Organization Head Taleb Rifai. They received an Open Letter on Travel and Tourism, but the UN agency said the letter was sent “to all heads of state.”
Victoria Falls, on the Zimbabwe-Zambia border, was named the official destination for the 20th UNWTO holiday conference.
“The receiving of the UNWTO/WTTC Open Letter implies no legal commitment or title attribution to the country or the head of state or government in question,” Carvão said.
Several UK newspapers carried stories variously claiming that Mugabe had been named a UN “ambassador,” “envoy” or “leader,” and quoting sources who complained that the African strongman was made a “ambassador” for tourism.
Mugabe is under a European Union and United States travel ban for the manner in which he has ruled Zimbabwe since his takeover of the country.

Mugabe Was Not Given Any Tourism Title: UN Agency

Jean Chua
Source: <a href="https://www.cnbc.com/id/47593786">PTT Looks to Tap East African Gas via Cove Energy Bid</a>
PTT will help provide a fast-growing market for the natural gas from U.K.-listed Cove Energy’s east African fields, if it wins a bidding war with Royal Dutch Shell, the CEO of the company Pailin Chuchottaworn told CNBC.
<img loading="lazy" decoding="async" type="image" src="https://image.cnbcfm.com/api/v1/image/46060986-natural-gas-pipeline-worker-200.jpg?v=1347772562&amp;w=1910&amp;h=1000" data-licensor-name="STR | AFP | Getty Images" width="1910" alt="" height="1000"></img>
PTT Exploration and Production , a subsidiary of state-owned PTT, is offering 240 pence ($3.76) per share for Cove, which owns 8.5 percent of the Rovuma gas field off Mozambique. That’s higher than the 220 pence offered by Royal Dutch Shell.
Mozambique is set to become a major gas exporter after a number of discoveries off the country’s shore. Meanwhile, demand for natural gas is rising in Asia, with many companies seeking to profit from the trend. 
PTT is building infrastructure for liquefied natural gas (LNG) in Thailand and foresees huge demand from Asia for the product, Pailin said. 
“Thailand just completed our first regasification facility and the second phase will make Thailand be able to take up 10 million tons of LNG per year,” Pailin told CNBC Asia’s “Squawk Box”&nbsp; “So we are actually bringing to the table a very stable market for the product from the gas stream.” 
PTT Exploration and Production shares have fallen since the company bid for Cove Energy. In all, the shares have dropped 7 percent this year, underperforming the Thailand stock market, which has risen 10 percent.
On the other hand, investors have been bidding up Cove’s shares betting on a counter-offer from Royal Dutch Shell. Cove shares closed Monday at 254.75 pence – a 15-cent premium to PTT Exploration and Production’s offer price.In the interview, Pailin also said Myanmar will be a focus for PTT, adding that it hopes to build energy infrastructure in the resource-rich Southeast Asian nation and eventually sell gas there.
<img loading="lazy" decoding="async" type="image" width="1910" src="https://image.cnbcfm.com/api/v1/image/&amp;w=1910&amp;h=1000" height="1000"></img>
Political reforms in Myanmar have prompted Western countries to ease sanctions imposed on the country. That, in turn, has led to a rush of interest by foreign investors keen to tap Myanmar’s economy. 
“Myanmar with 60 million population is a big enough market on its own. So it’s very important that we help the Burmese government turn their natural resource into economic wealth. This will help the Thai economy also,” Pailin said.
By CNBC’s Jean Chua.

PTT Looks to Tap East African Gas via Cove Energy Bid

Source: <a href="https://www.cnbc.com/2012/05/04/The-Worlds-Most-Remote-Resorts.html">The World&#8217;s Most Remote Resorts</a> 
The World&#8217;s Most Remote Resorts<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/47195045-Remote-Resorts-cover.jpg?v=1347772587&amp;w=1910&amp;h=1000" data-licensor-name="Photo courtesy: Voyages Hotels &amp; Resorts" width="1910" alt="Getting away from it all gets harder and harder, as cell phones and 4G devices keep us tapped into our lives. These ten getaways take up the challenge, spiriting you away from worldly cares. And we promise you won’t miss civilization one bit. Click ahead for the world’s most remote resorts!" height="1000"></img>
Getting away from it all gets harder and harder, as cell phones and 4G devices keep us tapped into our lives. These 10 getaways take up that challenge, spiriting you away from worldly cares. And we promise you won’t miss civilization one bit. Click ahead for the world’s most remote resorts!By&nbsp;Nicole Frehsee, Special to CNBC.comPosted 3 May 2012
Kauri Cliffs, Matauri Bay, New Zealand<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/47195051-Remote-Resorts-kauri-cliffs.jpg?v=1349480295&amp;w=1910&amp;h=1000" data-licensor-name="Photo: Kauri Cliffs" width="1910" alt="Starts at $623 a night per person, double occupancy, with meals and drinks all-in. For $7,171 nightly, though, you can book the 4,200-square-foot Owner’s Suite, with a private infinity pool and kitchen—so the chef can come to you.poised on the edge of the Totara forest, offers panoramic ocean views in 22 guest rooms with his-and-her walk-in closets on 6,000-acres. The resort is owned by American hedge-fund tycoon Julian Robertson. Hop Air New Zealand’s daily 40-minute flight to Kerikeri Bay fr" height="1000"></img>
Kauri Cliffs,poised on the edge of the Totara forest, offers panoramic ocean views in 22 guest rooms — with his-and-her walk-in closets — on 6,000-acres. The resort is owned by American hedge-fund tycoon Julian Robertson. Cost: Starts at $623 a night per person, double occupancy, with meals and drinks all-in. For $7,171 nightly, though, you can book the 4,200-square-foot Owner’s Suite, with a private infinity pool and kitchen — so the chef can come to you.Getting there: Hop Air New Zealand’s daily 40-minute flight to Kerikeri Bay from Auckland, then drive. Or take an hour-long helicopter ride from Auckland directly to the resort. What to expect: The main draw are the links, ranked the world’s 18th best by Golf Magazine, but you can also chill out on the pink-sand beaches,&nbsp;go boar hunting (pick your weapon: gun or knife), deep-sea fishing or play a little polo. Tip: book the Private Beach Barbecue, where a Kauri chef cooks up a feast of fresh seafood and local produce surfside.
Amangiri, Canyon Point, Utah<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/47195043-Remote-Resorts-amangiri.jpg?v=1349480295&amp;w=1910&amp;h=1000" data-licensor-name="Photo courtesy: Amangiri" width="1910" alt="$1,000 to $3,600 a night is a 34-suite resort nestled in a rocky valley in the Southern Utah desert and has hosted celeb guests from Brad and Angelina to Katy Perry. Fly to St. George Municipal Airport via Los Angeles or Salt Lake City and take a two-and-a-half hour road trip. From Page Municipal Airport in Arizona the drive is just 25 minutes, but you’ll have to book a charter from Phoenix, Denver, or Las Vegas. Surrounded by the Grand Canyon, Monument Valley, the Grand Staircase and Bryce an" height="1000"></img>
Amangiriis a 34-suite resort nestled in a rocky valley in the southern Utah desert and has hosted celeb guests from Brad and Angelina to Katy Perry. Cost: $1,000 to $3,600 a night Getting there: Fly to St. George Municipal Airport via Los Angeles or Salt Lake City and take a 2 1/2-hour road trip. From Page Municipal Airport in Arizona the drive is just 25 minutes, but you’ll have to book a charter from Phoenix, Denver or Las Vegas. What to expect: Surrounded by the Grand Canyon, Monument Valley, the Grand Staircase and Bryce and Zion national parks, Amangiri has abundant natural beauty, plus a swimming pool carved out of a canyon. Activities include outdoor yoga and fly-fishing on the nearby Colorado River. 
Bloomfield Lodge, Queensland, Australia<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/47195048-Remote-Resorts-hideaway.jpg?v=1349480295&amp;w=1910&amp;h=1000" data-licensor-name="Photo courtesy: Bloomfield Lodge" width="1910" alt="Cost: $1,210 to $3730 per guest, per night Sitting in the middle of the Daintree Rainforest, Australia’s largest stretch of tropical jungle, is too far removed to receive a cell signal. Novermind: you’ll be too wrapped up in the views of Weary Bay from your private terrace to get lonely. You’ll have to charter a plane for the 30-minute flight from Cairns, but after that hotel staff will chauffeur you through the Outback and ferry you across Weary Bay in an aluminum boat. (Don’t attempt the over" height="1000"></img>
Sitting in the middle of the Daintree Rainforest, Australia’s largest stretch of tropical jungle, Bloomfield Lodgeis too far removed to receive a cell signal. Nevermind: You’ll be too wrapped up in the views of Weary Bay from your private terrace to get lonely. Cost: $1,210 to $3,730 per guest, per night Getting there: You’ll have to charter a plane for the 30-minute flight from Cairns, but after that, hotel staff will chauffeur you through the Outback and ferry you across Weary Bay in an aluminum boat. (Don’t attempt the overland route, a four-hour drive from Cairns on gravel roads that become impassable when it rains.) What to expect: Rainforest hikes, gourmet picnics on the white-sand Kangaji Beach, and sport fishing and snorkeling on the Great Barrier Reef. Then relax over a menu that includes locally caught Barramundi and barbecued kangaroo. 
Winterlake Lodge, Alaska<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/47195061-Remote-Resorts-winterlake.jpg?v=1349480295&amp;w=1910&amp;h=1000" data-licensor-name="Photo courtesy: Winterlake Lodge" width="1910" alt="Starts at $1,395 per person per night, and includes meals and transportation from Anchorage to Winterlake. Located nearly 200 miles north of Anchorage on the Iditarod Trail, Winterlake Lodge’s 15 acres are so deep in Alaska’s backcountry that no roads or waterways reach it. From Anchorage, take a puddle-jumper – a ski plane in winter, a floatplane in summer – that lands on the lodge’s mile-long lake. Fifteen cabins, each with artisan furniture and wood-burning stoves, are a short walk to the m" height="1000"></img>
Located nearly 200 miles north of Anchorage on the Iditarod Trail, Winterlake Lodge’s 15 acres are so deep in Alaska’s backcountry that no roads or waterways reach it. Cost: Starts at $1,395 per person per night, and includes meals and transportation from Anchorage to Winterlake. Getting there: From Anchorage, take a puddle-jumper&nbsp;— a ski plane in winter, a floatplane in summer&nbsp;— that lands on the lodge’s mile-long lake. What to expect: Fifteen cabins, each with artisan furniture and wood-burning stoves, are a short walk to the main lodge, where you’ll find daily yoga classes, massages and wine and cheese tastings (samples flown in weekly from Murray’s Cheese Shop in New York). Outdoors, there’s dog-mushing school and bear-viewing. Or take one of Winterlake&#8217;s two choppers to a glacier in the Tordrillo Mountains or a remote fly-fishing spot. 
Antarctic Expedition Cruise<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/47195059-Remote-Resorts-silver-explorer.jpg?v=1349480295&amp;w=1910&amp;h=1000" data-licensor-name="Photo courtesy: Silversea Expeditions" width="1910" alt="$8,799 per person for a 10-day voyage to $14,799 for 17 days.Earth’s southernmost continent has no permanent residents other than polar bears, penguins, and whales, and no hotels. But you can get close to its glaciers by ship. Silversea Expeditions’ departs from Ushuaia, Argentina, a three-and-a-half hour flight from Buenos Aires. The 354-foot Explorer brings along a marine biologist, historian and geologist to guide excursions to Deception Island (home to a collapsed volcano), Paradise Bay (" height="1000"></img>
Earth’s southernmost continent has&nbsp;few permanent residents&nbsp;and certainly&nbsp;no hotels. But for those looking to see one of the planet&#8217;s most remote locations, you can get close to its glaciers by ship.Cost: $8,799 per person for a 10-day voyage to $14,799 for 17 days.Getting there: Silversea Expeditions’ Silversea Explorerdeparts from Ushuaia, Argentina, a 3 1/2-hour flight from Buenos Aires. What to expect: The 354-foot Explorer brings along a marine biologist, historian and geologist to guide excursions to Deception Island (home to a collapsed volcano), Paradise Bay (named for its stunning mountains and glaciers) and Brown Bluff (a 2,200-foot bluff where penguins go to breed). Onboard there are workshops and martini tastings. 
Longitude 131, Ayers Rock, Australia<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/47195052-Remote-Resorts-longitude1.jpg?v=1349480295&amp;w=1910&amp;h=1000" data-licensor-name="Photo courtesy: Longitude 131" width="1910" alt="Double occupancy starts at $2,070 per room per night. If you stay three nights or more, the price drops to $1,758. A string of 15 tents dotting a sand dune in the Outback may not sound luxurious, but the tents of cover 430-square-feet and have air-conditioning, retracting blinds, and Bose sound systems. Catch a direct flight to Ayers Rock Airport from Sydney to catch a 4WD vehicle for the last six miles through the Outback to the resort. Watching the sunrise over Uluru (a natural sandstone roc" height="1000"></img>
A string of 15 tents dotting a sand dune in the Outback may not sound luxurious, but the tents of Longitude 131cover 430-square-feet and have air-conditioning, retracting blinds and Bose sound systems. Cost: Double occupancy starts at $2,070 per room per night. If you stay three nights or more, the price drops to $1,758. Getting there: Catch a direct flight to Ayers Rock Airport from Sydney to catch a 4-wheel-drive vehicle for the last six miles through the Outback to the resort. What to expect: Watching the sunrise over Uluru (a natural sandstone rock formation and UNESCO World Heritage site); sip cocktails by sunset over the vast Kantju Gorge; and dine under the Outback stars.
Posada de Mike Rapu, Rapa Nui, Chile<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/47195044-Remote-Resorts-bedroom.jpg?v=1349480295&amp;w=1910&amp;h=1000" data-licensor-name="Photo courtesy: Posada de Mike Rapu" width="1910" alt="$2,385-$3,225, double occupancy, for a three-night stay. (Most expensive: the 474-square-feet Raa suites). Thirty rooms sits in the middle of the South Pacific on Rapa Nui (aka Easter Island). Its closest inhabited neighbor, Pitcairn Island, is 1,289 miles away. the island is roughly a five-hour flight from Santiago, Chile or Papeete, Tahiti. Besides visits to the mysterious stone heads, you can hike, or take a cycling trip to a tuna-fishing village that uses traditional methods. The resort’s" height="1000"></img>
Thirty rooms sits in the middle of the South Pacific on Rapa Nui (aka Easter Island or Isla de Pascua). Its closest inhabited neighbor, Pitcairn Island, is 1,289 miles away. Cost: $2,385-$3,225, double occupancy, for a three-night stay. (Most expensive: the 474-square-feet Raa suites). Getting there: The island is roughly a five-hour flight from Santiago, Chile, or Papeete, Tahiti.What to expect: Besides visits to the mysterious stone heads, you can hike, or take a cycling trip to a tuna-fishing village that uses traditional methods. The resort’s menu is packed with super-fresh seafood and Chilean wines.
Motu Teta, Rangiroa, Tahiti<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/47195053-Remote-Resorts-motuteta.jpg?v=1349480295&amp;w=1910&amp;h=1000" data-licensor-name="Photo courtesy: Motu Teta" width="1910" alt="Two people each pay $1,707 a night, but the bigger the group, the more the rate dips. Iincludes transport from Rangiroa plus food, liquor and unlimited use of sporting equipment. Don’t feel like sharing? The 9-acre island of rises out of the ocean like a South Pacific day-dream: swaying palm trees, powdery beaches, aqua waters lapping at the shore. Once you get there, it’s just you and the staff. The most arduous part of a Motu Teta vacation is arriving, which requires two flights – one to Pap" height="1000"></img>
Don’t feel like sharing? The 9-acre island of Motu Tetarises out of the ocean like a South Pacific day-dream: swaying palm trees, powdery beaches, aqua waters lapping at the shore. Once you get there, it’s just you and the staff. Cost: Two people each pay $1,707 a night, but the bigger the group, the more the rate dips. Includes transport from Rangiroa plus food, liquor and unlimited use of sporting equipment. Getting there: The most arduous part of a Motu Teta vacation is arriving, which requires two flights – one to Papeete, Tahiti’s capital, and another to the atoll of Rangiroa – then a 90-minute boat ride to the resort. What to expect: Sail in one of the resort’s six boats, windsurf, spear fish by day — naked if you like, since bathing suits are optional. By night, retreat to your 2,250-square-foot villa facing the lagoon and eat fresh fish and French-inspired cuisine prepared by your private chef.
Phinda Private Game Reserve, KwaZulu-Natal, South Africa<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/47195057-Remote-Resorts-phingra.jpg?v=1349480295&amp;w=1910&amp;h=1000" data-licensor-name="Photo courtesy: Phinda Private Game Reserve" width="1910" alt="The Homestead Villa comprises four suites, expansive wilderness views, an eternity pool, a private ranger, butler and chef, plus your own 4x4 safari vehicle. Rates range from $3,778 to $5,101 a night, with a limit of four guests. Phinda.com Phinda sits on 56,800 acres of wilderness near South Africa’s eastern coast. Africa’s Big Five game animals (lion, leopard, elephant, buffalo and rhino) roam the property, along with 415 bird species. First fly from Johannesburg to Richards Bay, then board a" height="1000"></img>
Phindasits on 56,800 acres of wilderness near South Africa’s eastern coast. Africa’s Big Five game animals (lion, leopard, elephant, buffalo and rhino) roam the property, along with 415 bird species. Cost: The Homestead Villa has four suites, expansive wilderness views, an eternity pool, a private ranger, butler and chef, plus your own 4&#215;4 safari vehicle. Rates range from $3,778 to $5,101 a night, with a limit of four guests.&nbsp; Getting there: Fly from Johannesburg to Richards Bay, then board a 10-seater to Phinda’s airstrip. Driving? Gas up: The resort is eight hours from Johannesburg. What to expect: Twice-daily drives in open safari vehicles let you observe the Big Five in their natural habitats. Or take walks in the African bush (accompanied by an armed ranger) or a canoe trip down the Mzinene River. Everything from booze to laundry services is complimentary.
Nimmo Bay Resort, Port McNeill, British Columbia<img loading="lazy" decoding="async" src="https://image.cnbcfm.com/api/v1/image/47195055-Remote-Resorts-nimmobay.jpg?v=1349480295&amp;w=1910&amp;h=1000" data-licensor-name="Photo courtesy: Nimmo Bay Resort" width="1910" alt="It’s just $895 per person to hang around camp, but $2,450 per person for helicopter adventures. If you want to fly solo, it’s an extra $300 a day. Set at the foot of Mount Stevens in the Great Bear Rainforest, is basically the world’s fanciest summer camp. Nimmo Bay is only accessible via air or sea. Most guests opt for a 20-minute helicopter ride from nearby Port Hardy, itself a one-hour plane flight from Vancouver. Boat lovers can take a 1.5-hour cruise from Port McNeill, BC (but you’d have" height="1000"></img>
Set at the foot of Mount Stevens in the Great Bear Rainforest, Nimmo Bayis basically the world’s fanciest summer camp. Cost: It’s just $895 per person per day to hang around camp, but $2,450 per person for helicopter adventures. If you want to fly solo, it’s an extra $300 a day. Getting there: Nimmo Bay is accessible only by air or sea. Most guests opt for a 20-minute helicopter ride from nearby Port Hardy, itself a one-hour plane flight from Vancouver. Boat lovers can take a 90-minute cruise from Port McNeill, B.C., (but you’d have to get there from Vancouver, an eight-hour trip). What to expect: Nine deluxe cabins stocked with homemade cookies and wine back up to a frigid plunge pool. The floating main lodge beckons with piping-hot bread from the onsite bakery and seafood dinners. Most activities require a helicopter ride. You can visit 10,000-year-old glaciers, natural hot springs and white-sand beaches.

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