Orders of China offshore oil risks review after spill (AP)

SHANGHAI – China's Ocean Administration ordered oil companies operating offshore wells to assess risks of incidents along its eastern coast two falls in a field operated by American energy giant ConocoPhillips.

Oceanic State Administration issued a warning Friday, saying the offshore petroleum producers should investigate thoroughly all risks, review their contingency plans and reassess the impact of their operations.

Off-shore operators should learn from the incident and "comprehensively and deeply investigate the risks of oil spill and rectify them," he said.

The falls, which covered 840 square kilometres (324 square miles) in the field of Penglai 19-3 oil in Bohai Bay, drew criticism from environmentalists and local media over the potential damage to the environment and the apparent delay in informing the public.

But China ConocoPhillips, which manages seven platforms of production in the area of Bohai Penglai, defended reply, saying responded quickly to the loss of both and informed the authorities the day that they were.

Earlier this week, Houston-based ConocoPhillips and its Chinese partners in State-owned CNOOC Ltd., said they stopped both the losses and the cleanup work was almost finished.

The delay in announcing the details of the leak, which was first noticed on 4 June, was in part due to the difficulty of tracing the seepage from a natural fault, they said, noting that such losses are rare and had not been seen before in the Bohai Sea.

The Oceanic Administration ordered operators of offshore platform to assess risks from injection water in oil tanks. Losses last month occurred when that work was underway.

ConocoPhillips said it had suspended the injection of water and drilling until it ends its investigation and would change its operational practices to prevent the recurrence of this problem.

State Oceanic Administration said 3,000 metres (3,300 feet) of arms and other equipment were deployed to help clean up the spill.

The oilfield Penglai 19-3, largest field off China, has been jointly developed by China ConocoPhillips and CNOOC Ltd. The U.S. partner holds 49 percent of the field and its operator, while the Chinese partner has 51 percent.

The spill has raised concern about the potential long-term impact on the fishing industry was very active in the area.

View the original article here

Read more »

US stocks SNAPSHOT-Wall St opens data significantly lower on orders

(NEW YORK, July 8, Reuters) - U.S. stocks report went back to Theopen on Friday after the June Payroll Payroll Shortof fell far expectations and dashed speed hopes economic recovery Hadregained.

View the original article here

Read more »

Factory orders rebound in may, aboard shipments up (Reuters)

WASHINGTON (Reuters)-new orders received from factories bounced back in may, boosted by demand for transport and a range of other products, which points to the underlying strength in the manufacturing sector.

The Commerce Department said Tuesday the orders for manufactured goods rose 0.8 percent after the fall of 0.9 per cent in April. Economists had forecast factory orders rebounding 1.0 per cent in May.

Production is leading the economic recovery, with data on Friday, showing a pick-up in the industry as the Institute for Supply Management manufacturing rose to 53.5 from 55.3 in June in the month of May.

Details of the report may factory orders suggested an easing in supply chain disruptions after the earthquake of March in Japan that had hindered the activities of the factory.

The Commerce Department report showed orders excluding transportation with edged 0.2 percent in may after a similar gain in the previous month.

Orders to U.S. factories vacancies rose 0.9 percent in may, the biggest increase since September, after a gain of 0.6 per cent in April. Shipments edged 0.1 percent after falling 0.4 percent in April.

U.S. inventories at factories rose 0.8 percent in May to 593.0 billion, the highest level since the series began in 1992.

The Department revised durable goods orders for may show a larger increase of 2.1 percent, rather than the increase of 1.9 percent previously reported. Excluding transportation, durable goods orders were up 0.7 percent in the month of may instead of 0.6 percent.

Orders for non-capital goods excluding aircraft defense, seen as a measure of business confidence, the increase has been verified to 1.6 percent.

(Reporting by Lucia Mutikani, Editing by Chizu Nomiyama)

View the original article here

Read more »

KB Home stung by weak home orders and charges (AP)

LOS ANGELES – House shares fell more than 15 KB per cent on Wednesday, after the homebuilder reported its second-quarter loss more than doubled among mediocre sales and higher costs, and the company reported examined by tapping the capital markets to raise money.

The company said it might consider the sale of stocks, bonds or obtain a credit line because it anticipates having to pay 100 million dollars to cover a maturity bond later this year in addition to more than 200 million dollars, the manufacturer agreed to pay to settle a dispute by joint venture.

Management pointed out that the company has enough money, at this point and still has some time to evaluate its options.

This guarantee did little to offset the results as investors scale House KB of worse than expected. Shares ended the regular session down $1,84 to $ 10.08 and slipped another penny in aftermarket trading.

New home of the marching orders for KB to the period from may, coinciding with the spring home selling season, fell to 11 percent from a year earlier, when federal tax incentives helped boost sales. Home deliveries, a vital source of income, fell on 29 percent.

President and CEO Jeffrey Mezger said that a change of housing remains hampered by consumer concerns about jobs and the American economy.

"Many of the recent national reports on the housing activities reflect today's soft case environment and demonstrate that we have a way forward on the road to a housing recovery," said Mezger.

Sales of new homes in the United States fell 2.1 percent in the month of May to a seasonally adjusted annual rate of 319.000 homes. New home sales had risen two months earlier, but remain well below the 700,000 a month economists consider healthy.

And consumer confidence hit a minimum of seven months, this month on continuing concerns over high unemployment and stagnant wages.

Trends in sales for the quarter of those of other great KB homebuilders echo this year. Many have seen a seasonal bump in traffic of the customer this spring, the traditional peak period for sales of homes, but the intensified interest in strong sales do not translate.

A factor is the first time buyers haven't been showing up as they did last year, when the tax credits were in effect. This market segment represents more than half of KB customers.

First time buyers also tend to have a harder time for home loans, amid tight lending standards of qualification. And many of those who receive funding have chosen to buy cheaper, resale homes.

"This is a big negative, not only for KB, but a big negative for the industry," said Gjokaj Demir, a senior analyst of ITG Investment Research in New York. "It shows us that, without doubt, the first time homebuyer is back."

Buyers who decide to buy a House often are taking months, not days or weeks, to take the plunge.

"They are exploring all options and are nervous," said Mezger.

Still, some markets, including parts of coastal California and Texas, are showing signs of stability, with house prices remain flat or even increasing, Mezger said.

Assuming that these markets and others remain stable, KB expects that it will be profitable in the fourth quarter.

KB Home headquarters in Los Angeles, said it lost $ 68.5 million, or 89 cents per share, in the three months that ended on 31 May. That compares with a loss of $ 30.7 million, or 40 cents per share, in the same period last year.

The results include $ 20.6 million in expenses to inventory impairments and land contract installategli and a loss of $ 14.5 million on a loan guarantee related to southern Edge LLC, a joint venture in Las Vegas. Earlier this month, the manufacturer has reached a settlement deal with JPMorgan Chase & Co. and several other large banks that made loans to the company.

Quarterly turnover slumped 27 percent KB, 271.7 million from $ 374.1 million the year before.

Analysts polled by FactSet were expecting a loss of 31 cents per share on approximately 291.4 million dollars in revenue.

KB Home builds homes in 12 States and was ranked the fifth homebuilder in the nation last year, according to closures.

View the original article here

Read more »