Kenyan Airways flight makes emergency landing in Sudan

KHARTOUM | Wed Jan 2, 2013 4:27am EST

KHARTOUM (Reuters) - A Kenyan Airways plane with 56 passengers on board made an emergency landing in the Sudanese capital, Khartoum, after an engine caught fire, witnesses said on Wednesday.

Nobody was hurt, but the incident on Tuesday night left passengers stranded in a country difficult for travel because credit cards do not work in Sudan due to U.S. trade sanctions. Banks change dollars only at a very unfavourable exchange rate compared with the dominant black market.

The Cairo-bound Boeing 737-700 took off in Khartoum after a regular stopover following a flight from Nairobi. But it had to return to the Sudanese capital after 20 minutes, three passengers on board flight KQ 320 told Reuters.

"An engine caught fire and the plane suddenly lost much altitude. The pilot made a sharp turn and returned to Khartoum," said Souhair Mohamed Hawala, an Egyptian passenger. "There was panic on board. People were crying or praying."

Other passengers showed what they said were pictures from the damaged wing and engine of the plane.

A Kenyan Airways official said the plane had returned with an unspecified "engine problem" and needed to be repaired in Sudan. "We don't know the cause yet," he said, adding passengers would be booked on the airline's next flight out of Sudan after 24 hours. (Reporting by Ulf Laessing; Editing by Peter Cooney)

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Europe debt woes prompt year-end flight from risk

A man is reflected on an electronic board displaying stock prices outside a brokerage in Tokyo November 10, 2011.

Credit: Reuters/Toru Hanai

By Alex Richardson

SINGAPORE | Wed Dec 14, 2011 10:17pm EST

SINGAPORE (Reuters) - Asian shares fell into bear market territory for the year and commodities and the euro nursed stinging losses on Thursday, after fears that Europe's debt crisis is still worsening prompted investors to dump riskier assets and huddle in the safety of the dollar and Treasuries.

The gloomy mood was not improved by a private sector survey indicating China's factory output shrinking again in December, adding to the headwinds facing a global economy struggling with sluggish U.S. growth and the euro zone sliding back into recession.

"We're quite bearish about the world at the moment," said Damien Boey, equity strategist at Credit Suisse in Sydney. "You're looking at basically the three major economies in the world causing problems."

The market view that a European Union summit last week had failed to produce a solution to the crisis was reinforced when Italy was forced to pay an eye-watering 6.47 percent on 5-year bonds on Wednesday, a record borrowing cost for the euro era.

Japan's Nikkei fell 1.3 percent and MSCI's broadest index of Asia Pacific shares outside Japan .MIAPJ0000PUS was down 1.8 percent, following losses of around 1 percent on Wall Street and a steeper sell-off in Europe. .T .N .EU .L

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

HSBC China flash PMI: link.reuters.com/hyd55s

Japan BOJ Tankan: link.reuters.com/pez55s

Euro zone crisis in graphics: r.reuters.com/hyb65p

Interactive timeline: link.reuters.com/rev89r

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

The MSCI Asia ex-Japan is down 20 percent for 2011 -- the rule-of-thumb definition of a bear market -- while the Nikkei has lost about 17.5 percent. Both have underperformed global equities .MIWD00000PUS, which have lost around 12.5 percent, and U.S. stocks .SPX, which are only down around 3.5 percent.

Europe remains investors' biggest worry, with markets still braced for ratings agency downgrades of euro zone sovereigns.

"Markets are frustrated and disappointed, waiting for a road map on the resolution of the two-year-old debt crisis," said Ong Yi Ling, an investment analyst at Phillip Futures in Singapore. "Risk assets are all down. The debt crisis will be with us at least through the first half of 2012."

Equity losses in Hong Kong .HSI and Shanghai .SSEC deepened after the release of HSBC's China flash PMI, the latest piece of data to show the world's second largest economy losing steam, but reaction in broader markets was muted.

COMMODITY SLIDE

Wednesday's stock market declines were dwarfed by carnage in commodity markets, where oil, gold and copper shed 4-5 percent.

Gold has been hammered in recent days as fund managers liquidate their holdings, either to cover losses elsewhere or to lock in profits on an asset that is still up more than 10 percent for the year.

"Some macro hedge funds are liquidating gold holdings and taking profits in a difficult year," said James Steel, chief technical analyst at HSBC.

The precious metal edged down a little further on Thursday to around $1,572 an ounce, while U.S. crude oil inched up to $95.20 a barrel and Brent crude bounced more than 50 cents to around $105.60.

The euro fell as low as $1.2944, its weakest level since January 11, and was later steady around $1.2990.

A downgrade by ratings agency Fitch of five major European financial groups, including France's Credit Agricole to A-plus from AA-negative, added to the already euro-negative sentiment.

This comes on top of the prospect of further cuts by rival Standard & Poor's, which warned earlier this month it could downgrade the ratings of 15 of the 17 euro zone members.

"I can see the U.S. dollar keep trending higher while the euro flounders," said Joseph Capurso, a strategist at Commonwealth Bank of Australia.

(Additional reporting by Miranda Maxwell in Melbourne, Jane Lee in Kuala Lumpur and Frank Tang in New York; Editing by Richard Borsuk)

View the original article here

Europe debt woes prompt year-end flight from risk

A man is reflected on an electronic board displaying stock prices outside a brokerage in Tokyo November 10, 2011.

Credit: Reuters/Toru Hanai

By Alex Richardson

SINGAPORE | Wed Dec 14, 2011 10:17pm EST

SINGAPORE (Reuters) - Asian shares fell into bear market territory for the year and commodities and the euro nursed stinging losses on Thursday, after fears that Europe's debt crisis is still worsening prompted investors to dump riskier assets and huddle in the safety of the dollar and Treasuries.

The gloomy mood was not improved by a private sector survey indicating China's factory output shrinking again in December, adding to the headwinds facing a global economy struggling with sluggish U.S. growth and the euro zone sliding back into recession.

"We're quite bearish about the world at the moment," said Damien Boey, equity strategist at Credit Suisse in Sydney. "You're looking at basically the three major economies in the world causing problems."

The market view that a European Union summit last week had failed to produce a solution to the crisis was reinforced when Italy was forced to pay an eye-watering 6.47 percent on 5-year bonds on Wednesday, a record borrowing cost for the euro era.

Japan's Nikkei fell 1.3 percent and MSCI's broadest index of Asia Pacific shares outside Japan .MIAPJ0000PUS was down 1.8 percent, following losses of around 1 percent on Wall Street and a steeper sell-off in Europe. .T .N .EU .L

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

HSBC China flash PMI: link.reuters.com/hyd55s

Japan BOJ Tankan: link.reuters.com/pez55s

Euro zone crisis in graphics: r.reuters.com/hyb65p

Interactive timeline: link.reuters.com/rev89r

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

The MSCI Asia ex-Japan is down 20 percent for 2011 -- the rule-of-thumb definition of a bear market -- while the Nikkei has lost about 17.5 percent. Both have underperformed global equities .MIWD00000PUS, which have lost around 12.5 percent, and U.S. stocks .SPX, which are only down around 3.5 percent.

Europe remains investors' biggest worry, with markets still braced for ratings agency downgrades of euro zone sovereigns.

"Markets are frustrated and disappointed, waiting for a road map on the resolution of the two-year-old debt crisis," said Ong Yi Ling, an investment analyst at Phillip Futures in Singapore. "Risk assets are all down. The debt crisis will be with us at least through the first half of 2012."

Equity losses in Hong Kong .HSI and Shanghai .SSEC deepened after the release of HSBC's China flash PMI, the latest piece of data to show the world's second largest economy losing steam, but reaction in broader markets was muted.

COMMODITY SLIDE

Wednesday's stock market declines were dwarfed by carnage in commodity markets, where oil, gold and copper shed 4-5 percent.

Gold has been hammered in recent days as fund managers liquidate their holdings, either to cover losses elsewhere or to lock in profits on an asset that is still up more than 10 percent for the year.

"Some macro hedge funds are liquidating gold holdings and taking profits in a difficult year," said James Steel, chief technical analyst at HSBC.

The precious metal edged down a little further on Thursday to around $1,572 an ounce, while U.S. crude oil inched up to $95.20 a barrel and Brent crude bounced more than 50 cents to around $105.60.

The euro fell as low as $1.2944, its weakest level since January 11, and was later steady around $1.2990.

A downgrade by ratings agency Fitch of five major European financial groups, including France's Credit Agricole to A-plus from AA-negative, added to the already euro-negative sentiment.

This comes on top of the prospect of further cuts by rival Standard & Poor's, which warned earlier this month it could downgrade the ratings of 15 of the 17 euro zone members.

"I can see the U.S. dollar keep trending higher while the euro flounders," said Joseph Capurso, a strategist at Commonwealth Bank of Australia.

(Additional reporting by Miranda Maxwell in Melbourne, Jane Lee in Kuala Lumpur and Frank Tang in New York; Editing by Richard Borsuk)

View the original article here

EU and Russia agree end to trans-Siberian flight fees

BRUSSELS | Fri Nov 25, 2011 4:19am EST

BRUSSELS (Reuters) - The European Union and Russia have agreed to phase out the fees paid by EU air carriers in order to fly trans-Siberian routes, potentially reducing the cost of flying from Europe to East Asia.

The fees had been a long-standing source of disagreement, and the accord followed a deal struck in October between the EU and Moscow for Russia to join the World Trade Organisation. Russia is now expected to join the 153-member group in December.

"The arrangement abolishes the obligation for EU carriers to enter into commercial agreements with, and pay fees to, Russian air carriers for the use of those routes as from 1 January 2014 at the latest," the Council of the European Union said in a statement. The Council represents the EU's 27 national governments.

With their abolition, any charges paid by EU airlines to the Russian authorities will have to be cost-related and transparent and must not lead to discrimination against foreign airlines, the Council said.

The new arrangement will enter into force on January 1 next year, so long as Russia is formally admitted to the WTO next month. It was based on principles initialled by the EU and Russia in 2006, but Russia had only now agreed to implement them, the Council said.

(Reporting By Sebastian Moffett; Editing by Helen Massy-Beresford)

View the original article here