New Brazilian oil Company Focuses on Onshore and Shallow Water

August 30th, 2010

Barra Energia, a newly established independent oil company from Brazil, intended to form prospects in onshore and shallow water with $500 million in financial support from the First Reserve Corp.

According to Renato Tadeu Bertani (Thompson & Knight Energy Services chief executive officer ) and Joao Carlos de Luca (president of the Brazilian Petroleum and Gas Institute and formerly the Repsol YPF Brazil president), Barra Energia’s aim to pursue ultradeep breakthroughs offshore, along with an assumed tighter control over them by Brazil, made the shallow locations a point of opportunity.

Bertani said that because most of the focus has been on deep water, there is not much attention given to onshore and shallow water discoveries.

The company intended to implement new geologic models and enhanced technology to advanced areas of manufacturing to boost output, as much as the latest strategies have enabled businesses to use shale in developing gas production in the United States.

The initial deal was said to come soon, but the company founders did not disclose a particular date.

First Reserve Houston’s branch managing director, Will Honeybourne, said that this was the way America reinvents itself. He further added that since Brazil lacked capitalized independents, there are countless opportunities for improvement.

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First Business China Awards This November

August 24th, 2010

Entrepreneurs and businesses that have contributed to the success of the relations between China and Singapore will now be rightfully acknowledged, as the first Business China Awards will be held on November 23rd 2010.

Honoring two decades of diplomatic partnership between these Asian nations, the Business China Awards organizers said that the event aims to strengthen the bond as the Chinese market continues to be productive, with a record of 12% growth in the first quarter of 2010.

According to Business China’s chairman, Chua Thian Poh, one of their aims is to persuade more Singaporeans to take up the China challenge.

The award, after being launched last year, opened to businesses and entrepreneurs from Greater China (Macau, Mainland China, Hong Kong and Taiwan), as well as for those from Singapore.

The Business China Award is segregated into four categories, namely Business China Enterprise Award, Business China Young Achiever and Business China Excellence Award.

The judging criteria, according to the award organizers, will be inclusive and extensive.

Among the list of attributes that will be vital to communities in Singapore and China are effective administration and enterprise-corporate governance. This is according to Lim Chee Onn, Singapore’s Keppel Corporation senior adviser and a Business China director. In addition to this, he added that both countries were expecting to get better on the identified aspects.

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Max New York Life Expects Business Growth

August 16th, 2010

Insurance company Max New York Life had assumptions of a 15 to 20% increase in its premium collection between 2010 and 2011, after realizing the 2009 new business premium income stayed in the moderate status. The business has also taken on a 10-year tactical Bancassurance partnership with Axis Bank in efforts to increase sales.

To solidify the joint venture, Max India, which holds 74% of the stake in the company, decided to sell 4% of it to Axis. As a result, the stake acquisition will lower Max India’s shareholding to 70% in the insurance scheme.

According to Max India’s chief executive officer and managing director, Analjit Singh, the partnership is proof of the company’s commitment to bring the partnership and the business to a higher level. In addition to this, Singh also stressed the point that the stake partnership is not a financial venture.

Shikha Sharma, managing director and chief executive of Axis Bank, in turn, said that the concept of the venture was to have a common ground in expanding the business jointly. The bank’s stake in Max New York Life will reflect such an effort.

While Max New York Life has not yet paid premium for the partnership, both companies are still looking forward to getting profit from it, this is according to Max New York’s CEO and MD, Rajesh Sud. The insurer’s paid capital was about Rs 1,900 crore and the fixed month end value in March 2009 was at Rs 2,284 crore.

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India’s Business Confidence Index Increases

August 9th, 2010

In spite of issues on global financial flux and inflationary pressures in India, the Indian business sector is positive that there will be better opportunities happening in the future, particularly in the first half of the present fiscal year that will end in March 2011, according to a survey by the Confederation of Indian Industry (CII).

CII’s survey revealed that there was a 1.5 point boost in the BCI to the 67.6 level over the earlier survey that measured business mood for six months, which ended in March of 2010. On the other hand, the progress in the business sentiment, as seen by an increase in the BCI, was average compared to a 7.4 point improvement in the latter survey, which was compared to the period between April and September 2009.

CII Director General Chandrajit Banerjee said that although there was only a moderate increase, it was crucial to mention that it was on a “high base of the previous survey.” When it was compared with last year – the period from April-September 2009 – the Business Confidence Index (BCI) tallied almost nine points. The total index denoted the assumptions from the financial system in the current status, as well as in the next few months.

The survey, which covered over 450 businesses in India, showed that business outlook for the services area – counting the outsourcing sector – is quite higher than the total business sentiment. It likewise indicated that three in four businesses intended to boost their investments in the future, whereas two-thirds of the respondents were sure of growth in exports in the next months.

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China’s Geely Buys Ford’s Volvo

July 28th, 2010

The Zhejiang Geely Holding Group of China signed a binding deal to purchase the ailing Volvo Cars from leading manufacturer Ford Motor Co for $1.8 billion.

“I can confirm that a final agreement on the sale of Volvo to Geely was signed at 2:40 pm,” Volvo Cars’ spokesperson Per-Ake Froberg said last March 28, 2010.

A news conference was then organized at Volvo’s headquarters in Goteborg, which is located on the west coast of Sweden. During the conference, representatives of both companies stated that regulatory approvals have to be completed before the deal is totally sealed.

The transaction, which is expected to be finished by the third quarter of the year, is going to be paid through cash and a $200 million note.

Ford has been planning to sell its problematic Volvo component ever since 2008, so that it can more effectively manage its other car brands, namely Mercury, Lincoln and Ford.

However, the transaction will bring only a third of the $6.4 billion Ford paid in order to buy the Swedish luxury car brand in 1999.

At present, there are over 22,000 people working for Volvo across the world, and more than half of them are located in Sweden. Some unions within the company were against the deal at first because of possible job layoffs and ambiguous expansion plans.

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Burj Khalifa, World’s Tallest Structure, Re-opens Observation Deck

July 28th, 2010

The observation deck of Burj Khalifa, the world’s tallest tower, has finally been re-opened. The deck was shut two months ago after an elevator accident caused visitors to be trapped more than 120 stories above the ground. During the opening ceremony, dozens of tourists visited and bought tickets to take an elevator ride to the top floor of the half-mile high superstructure located in Dubai, United Arab Emirates.

Burj Khalifa’s was forced to close its observation deck in February after an elevator filled with visitors malfunctioned, leaving visitors trapped in the tower for 45 minutes. Rescuers had to drop a ladder to into the shaft so that those inside could escape the defective elevator. Two months after the incident, people still have no clue as to what caused the elevator to fail.

The unforeseen accident was very embarrassing for Dubai for its leaders hoped that the soaring building could attract more tourists as well as revive the advanced, cosmopolitan image the metropolis has earned in the past.

With a height of 2,717 ft (828 meters), this sky high tower not only is the world’s tallest skyscraper, but is also the tallest freestanding building in the world.

Burj Dubai has over 160 stories, although the number of floors isn’t exactly known.

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Interest Rates Rise in the US

July 26th, 2010

The people of the Unites States have long been enjoying relatively low interest rates. However, with the nation still gradually recovering from the economical downturn, consumers will face the financial problem of higher interest rates.

Economists are expecting interest rates to grow since the nation aims to surmount its increasing debt as well as prevent rising trends.

“Americans have assumed the roller coaster goes one way,” said Bill Gross, the co-founder of the investment firm PIMCO. “It’s been a great thrill as rates descended, but now we face an extended climb,” Gross added.

For 30-year house loans, for instance, the interest rate has gone up from 5 to more than 5.2%. As for fixed mortgage, the average rate rose from 5.08 to 5.21%, said the mortgage company Freddie Mac.

According to economists, the average rate of 30-year home loans may also reach up to 6%, which was the level that was last observed in November 2008.

In addition, the interest rate of a 15-year fixed rate mortgage has also increased from 4.39 to 4.52% last week.

The impact of the interest rate hike will be felt by the housing industry the most. What with all these statistics, mortgage rates are not likely to go any lower than their present levels.

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CPRE Survey Supports Reduction of Light Pollution

June 25th, 2010

There is nothing like gazing at glittering stars at night. However, most people think the view of the sky at night is hampered by all the artificial light around. A recent survey has confirmed this.

For this reason, the Campaign to Protect Rural England (CPRE) has supported calls to reduce the usage of street lights and neon signs, among others, in order to lessen the problem.

With the help of the British Astronomical Association, the CPRE surveyed 1,745 people in the United Kingdom, and 83% of them said that they have been disturbed by this light pollution problem.

Around 50% of the respondents added that light pollution has been disturbing their sleep.

The CPRE added that artificial light not only distracts us from the magnificence of the night sky, it also damages the environment and wastes a lot of money.

Respondents expressed various comments through the survey, from regret and sadness to anger and frustration.

For several years, campaigners have promoted efforts to solve the problem. Supporters have also pointed out the importance of businesses, councils and homeowners in taking steps to reduce levels of light pollution.

“The costs of not acting are clear: unnecessarily high energy bills for councils, and therefore, for local taxpayers, more carbon emissions, disrupted sleeping patterns for people, disturbance to wildlife, and a night sky bereft of the majesty of the Milky Way,” said Emma Marrington, CPRE’s rural policy campaigner.

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Profiles in Business: Amancio Ortega, the King of Spanish Fashion

June 23rd, 2010

Amancio Ortega Gaona is a Spanish businessman who established one of the largest fashion companies in the world. He is the wealthiest individual in Spain, and the 10th richest man in the world, as ranked by Forbes Magazine. He has an estimated net worth of over $25 billion. The 73-year old self-made billionaire accumulated immense wealth from scratch as a mogul in the fashion industry. He is the founder, chairman and majority owner of the INdustrias de DIseño TEXtil, or simply called the Inditex Group.

Amancio Ortega’s Inditex is a Spanish conglomerate made up of different companies engaged in textile design, development, manufacturing and distribution. He controls one of the world’s largest fashion groups after LVMH Moet Hennessy Louis Vuitton, which is led by French business tycoon Bernard Arnault.

Born in Leon, Spain on March 28, 1936 to a railroad worker and a maid, Amancio Ortega’s humble beginnings pushed him to work hard throughout his life. He started to work at the young age of 14 as a gofer in different shirt stores in A Coruña, Spain. He eventually pursued his own enterprise when he established Confecciones Goa, a textile company that manufactured dressing robes.

In 1975, Amancio Ortega opened his first store in what would become the extremely popular and innovative chain of fashion stores called Zara. The rest, as they say, is history. He has expanded his business and acquired several other brands along the way. From a single Zara store in A Coruña, Spain, he established a conglomerate of various fashion brands with over 4,350 stores employing more than 14,000 individuals all over the world.

The Inditex group is composed of several distinct brands, including Zara, Bershka, Pull and Bear/Often, Massimo Dutti, Stradivarius, Oysho, Uterque and Zara Home. Amancio Ortega has been hands-on in leading the company by being part of the production and design processes of the company.

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Mukesh Ambani: The Richest Man in Asia

June 10th, 2010

Mukesh Ambani is a 52-year old Indian business mogul. He is the current chairman and managing director of Reliance Industries Limited, the largest private sector conglomerate in terms of market value in India. He is also the biggest shareholder of the Fortune 500 company, owning 48% of the corporation’s stocks. Presently, he is the fourth richest man in the world, with a net worth of $30 billion as estimated by Forbes Magazine.

The Indian billionaire acquired the entrepreneurial spirit and industriousness that led him to business success from his father, Dhirubhai Ambani, the founder of Reliance Industries. Dhirubhai Ambani turned the organization into India’s most massive conglomerate. Mukesh Ambani has followed his father’s footsteps since high school, when he would spend most of his time in his father’s office during the weekends.

He attended college at the University Institute of Chemical Technology, University of Mumbai, where he took up chemical engineering. He also pursued a Masters in Business Administration at the Stanford Graduate School of Business, Stanford University.

Mukesh Ambani joined Reliance in 1981. After their father died, he and his younger brother Anil took over Reliance Industries and ran the company together until 2006. Differences in interests and disputes over company control led the brothers to divide the conglomerate’s assets and operations. Mukesh Ambani took over the oil, gas and petrochemicals businesses.

Since then, he has led Reliance Industries and helped turn it into India’s most valuable company. He pushed for expansion as the company diversified into several ventures, including petrochemicals, petroleum refining, oil and gas exploration and production. He led Reliance’s initiative to create the biggest grassroots petroleum refinery in the world located in Jamnagar, India. Reliance Industries became the only Indian company to be included in Forbes Magazine’s list of “world’s 100 most respected companies.”

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