Exxon and Shell profits surge on higher oil prices

Exxon Mobil and Royal Dutch Shell Plc reported big jumps in first quarter earnings and beat forecasts, thanks to high oil prices and healthy refining margins.

Exxon Mobil said first quarter net income rose to $10.65 billion (6.39 billion pounds), up 69 percent on the same period last year and ahead of an average forecast of $9.99 billion, helped by its takeover of XTO Energy last year.

Shell said current cost of supply (CCS) net income rose 22 percent to $6.9 billion in the first three months.

Brent crude was 38 percent higher in the first quarter compared with the 2010 period, while global refining benchmarks tripled.

ConocoPhillips on Wednesday reported a 43 percent rise in net income, while BP posted a 2 percent drop in replacement cost earnings due to lingering effects of the oil spill. Both companies lagged forecasts.

Replacement cost and CCS net income strips out unrealised gains related to changes in the value of oil inventories and so is comparable to net income under U.S. GAAP.

U.S. natural gas prices dropped while European prices and the price of liquefied natural gas jumped, following the Japanese earthquake, which was expected to lead to higher gas demand in that country as nuclear power is scaled back.

Exxon said oil and gas production rose 10 percent compared with the 2010 period, to 4.82 million barrels of oil equivalent per day (boepd), thanks to the XTO takeover, while Shell said output fell 3 percent to 3.50 million boepd, due to divestments.

Analysts said the ramp-up of new projects in the second half of the year and strong oil prices could allow Shell to boost its dividend as some rivals struggle to keep theirs constant.

"Gearing remains low and, with the expected growth in cash generation from H2 2011, supports dividend growth from Q1 2012, in our view," Citigroup analyst Alastair Syme said in a research note.

High oil prices are also boosting the companies which provide equipment and personnel to help big oil projects on stream. On Thursday, French oil services group Technip posted a rise in first-quarter profit and margins as higher oil prices led producers to ramp up spending on new fields.

February job openings in USA the highest in nearly 2-1/2 years

U.S. job openings in February were the most in nearly 2-1/2 years, a government report showed on Wednesday, indicating an improvement in labor market conditions.

Job openings -- a measure of labor demand -- rose 352,000 to 3.1 million, the highest level since September 2008, the Labor Department said in its monthly Job Openings and Labor Turnover Survey on Wednesday.

"Today's report reflects continued improvement in the labor market," said Theresa Chen, an economist at Barclays Capital in New York.

"Although skills mismatch is still likely an issue at this point in the recovery, the increase in the availability of jobs should foster further improvement in the employment outlook."

The labor market healing is gathering momentum after lagging the broader economic recovery. Employers added 216,000 jobs in March, with the jobless rate slipping to a two-year low of 8.8 percent.

In February, the job openings rate -- a gauge of how many jobs were still open at the end of the month -- rose to 2.3 percent from 2.1 percent in January.

The rise in job openings in February was led by the private sector, where openings increased sharply in the professional and business services, leisure and hospitality, and accommodation and food services sectors.

Government job openings also rose, despite budget constraints at state and local governments.

Still, the labor recovery market has a long way to go and job openings remain below the 4.4 million level when the economy slipped into recession. In February, the ratio of unemployed workers to job openings was 4.4 to 1 from 5.1 to 1 in January.

"It means that for 3 out of 4 unemployed workers, there simply are no jobs," said Heidi Shierholz, an economist at the Economic Policy Institute in Washington.

Layoffs and discharges edged up to 1.59 million from 1.54 million in January.

Source: Reuters, reporting by Lucia Mutikani

JPMorgan aims to double headcount in Brazil-report

JPMorgan to expand up to 1,200 employees in medium-term

* Company grew six-fold in country over past 14 months

SAO PAULO, April 17 - U.S. bank JPMorgan (JPM.N) plans to nearly double the number of its employees in Brazil to keep pace with an expanding financial market in Latin America's largest economy, the Financial Times said on Sunday.

The bank has grown six-fold in the past 14 months to 630 people and will add an additional 150 over the next year. It plans to reach 1,100-1,200 personnel in the next few years, the bank's chief executive in Brazil, Claudio Berquo, told the newspaper.

Berquo said the company will focus on five of the country's major cities, which will give it "a footprint that covers 80 percent of the gross domestic product of Brazil."

This does not take into account JPMorgan's acquisition of Rio de Janeiro-based hedge fund Gavea in 2010, which was founded by former local central banker Arminio Fraga.

Brazil's economy grew 7.5 percent in 2010, but slower growth is expected this year. Investment banking operations also showed stellar activity, setting records across the spectrum of business.

Data company Dealogic said the value of mergers and acquisitions in Brazil grew to $153 billion from $60 billion in 2009. Share offers nearly doubled to $49 billion and debt issuance grew to $48 billion from $30 billion the year before.

The 2011 playing field may not be as kind to investment banks. The government is tightening credit in a fight to contain inflation which looks on course to break out of the 6.5-percent per year upper limit of the central bank's target.

But banks from abroad expanding in Brazil still see the medium-term growth potential of the country offsetting the short-term challenges and risks.

Source: Reuters, Reporting by Reese Ewing

Malaysia unveils plan to double capital market

KUALA LUMPUR: Malaysia on Tuesday unveiled a plan to more than double its capital market size to 4.5 trillion ringgit (US$1.5 trillion) by 2020.

Prime Minister Najib Razak, who is also the finance minister, said the government will allocate more funds to develop venture capital and private equity firms.

"We must do everything we can to ensure that Malaysia's capital market doesn't just grow, it grows with minimal risks in a well-regulated environment," he told fund managers and investors at an investment forum.

Malaysia's current capital market is worth 2.0 trillion ringgit, according to local bourse officials.

Najib gave some details of the government's plans to divest its holdings in state-linked companies with the aim of increasing liquidity in the country's stock market.

Federal land authority Felda Global Bhd's sugar refining unit Malayan Sugar Manufacturing would be listed on the stock exchange in July, he said.

Najib said expanding the capital market was a needed to help boost Malaysia's role as an Islamic capital hub.

The Islamic capital market in Malaysia is set to increase almost threefold to 2.9 trillion ringgit by 2020 from 1.1 trillion in 2010, he said.

One economist hailed the plan as demonstrating the government's commitment to bolster the local capital market.

"The plan is geared towards enabling the government to reach its high-income nation target by 2020 through a more facilitative role of capital markets," Yeah Kim Leng, chief economist from ratings agency RAM Holdings said.

But Yeah said it was crucial for the government to maintain investor confidence.

"Higher confidence will mean a more efficient mobilisation and effective harnessing of both domestic and foreign investments," he said.

Najib has unveiled a series of economic reforms since taking power in 2009 aimed at creating 3.3 million jobs and raise Malaysia's average per capita income to 15,000 (US$5,000) ringgit by 2020 from about 7,000 at present.

Export-dependent Malaysia was hit hard by the global slowdown but it rebounded with 7.2 per cent growth in 2010 and it is expected to grow five to six per cent this year.

Source: channelnewsasia.com

UK employers putting more emphasis on health and safety qualifications.

Anyone looking for a health and safety job without suitable qualifications 'need not apply' according to new research.
The 2011 National Examination Board in Occupational Safety and Health (NEBOSH) Jobs Barometer found only three of 100 nationally advertised health and safety vacancies failed to specify an appropriate level qualification or professional status.

Between 23rd March and 6 April 2011, NEBOSH examined one hundred job adverts for health and safety managers or advisors. In 93 cases, a NEBOSH qualification and/or Technician Membership of IOSH or higher was specified.

Overall, 66 of the 100 positions mentioned at least one NEBOSH qualification.

Membership of IOSH (The Institution of Occupational Safety and Health) at Technician level or higher was mentioned in 48 job adverts. Five mentioned 'Tech IOSH', 'Grad IOSH' was specified 17 times and 26 positions called for Chartered Membership (CMIOSH). Membership at all three levels requires accredited qualifications.

The average top-end salary advertised was £45,000 per annum. The majority of vacancies (29%) were located in London, with a further 28% in the Home Counties and South East. Around one in six (18%) were based in the Midlands or East Anglia, 7% in the North West, 7% in Wales and the South West, 5% in Scotland and 2% in Yorkshire and the North East. Slightly less than one in 20 (4%) vacancies were "flexible" on location. Many of the roles required travel throughout the UK and some overseas.

NEBOSH Chief Executive, Teresa Budworth, said: "It's clear that anyone seeking a job as a health and safety manager or advisor in the UK will struggle to find a position without appropriate level qualifications."

The 2011 NEBOSH Jobs Barometer also revealed that as many as 62% of advertised health and safety positions included responsibility for environmental management, up from 55% in April 2010. Over half (53%) of job titles refer to "environment", up from 42% last year. Job titles and responsibilities also included "quality", "facilities", "risk management","assurance" and "well-being".

By david Woods

US Jobless claims fall, retail sales stronger

New claims for jobless benefits fell last week and retailers racked up much stronger-than-expected sales in March, signs that high fuel prices have not knocked the economy off its growth path.

Initial claims for state unemployment aid slipped 10,000 to 382,000, the Labor Department said on Thursday, a touch below economists' expectations and firmly beneath the 400,000 level associated with steady jobs growth.

Other data showed shoppers shrugged off higher gasoline prices last month to boost sales at many retailers as improving labor market conditions encouraged discretionary spending.

Same-store retailer sales had been expected to decline for the first time since August 2009, in part because Easter falls three weeks later than last year, delaying some spending.

"The claims report is one more piece of evidence that the general labor market is improving," said Patrick O'Keefe, head of economic research at J.H. Cohn in Roseland, New Jersey.

"The economy is growing and employers are no longer laying off workers because of a weakening in the general economic conditions but rather they doing so for normal business reasons."

The claims data underscored the strengthening labor market tenor and came on the heels of a report last week showing employers added 216,000 jobs in March, with the unemployment rate falling to a two-year low of 8.8 percent.

Last week, the four-week average of unemployment claims, a better measure of underlying trends, fell 5,750 to 389,500.

With the labor market conditions firming, consumers are feeling a little more confident to loosen their purse strings.

Sales at stores open at least a year rose 1.7 percent in a tally of 25 retailers, topping expectations of a 0.7 percent decline, according to Thomson Reuters.

GASOLINE TO DISTORT RETAIL SALES

The stronger-than-expected same-store sales bode well for the government's overall retail sales report for March, which is scheduled for release next week and is expected to be heavily influenced by the high gasoline prices.

They offered some relief after other data on consumer spending suggested a moderation in the pace of economic growth early in the year after a fairly brisk pace in the fourth quarter.

Consumer spending -- which accounts for about 70 percent of U.S. economic activity -- got off to slow start in the first two months of 2011 -- held back by bad weather. Rising gasoline prices also took spending away from other sectors.

The stronger-than-expected same-store sales were little boosted by inflation, given the nature of the merchandise which economists said was less sensitive to the high energy prices.

"Consumers have held back for a long time, there is a certain amount of pent-up demand. Wage growth isn't much, but we are also seeing an increase in income because of an increase in job growth," said Steve Blitz, a senior economist at ITG Investment Research in New York.

"Job growth also means that for those who are employed there is reduced concern about being laid off so the pent up demand is coming out."

With the latest fall, initial claims for jobless benefits are now beneath the 400,000 level, which is generally associated with steady job growth, for four weeks in a row.

The four-week average has held below that mark for the sixth straight week. Economists say both measures need to drop to about 300,000 to signal a strong labor market recovery.

Signs of improvement in the jobs market were also evident in the number of people still receiving benefits under regular state programs after an initial week of aid, which fell in the week ended March 26 to the lowest level since October 2008.

However, long-term unemployment remains a major problem.

A total of 8.52 million people were claiming unemployment benefits under all programs in the week ended March 19, the latest week for which data is available.

"While the labor market has stabilized and employment may be increasing, it's not increasing so rapidly that previously unemployed people who were claiming benefits are returning to work at a fast clip," said J.H. Cohn's O'Keefe.

Source Reuters. By Lucia Mutikani

Irish bank regulator says senior debt holders safe

Senior bond holders in Ireland's four remaining lenders won't have to take a hit to fill a 70 billion euro (60 billion pounds) capital hole in the parlous sector, the country's banking regulator said on Wednesday.

"The government has taken a clear decision that action will not be taken against the senior bond holders of these four institutions, as they represent the basis of the restructured banking system for the future," Matthew Elderfield, head of financial regulation at the Irish central bank told a Reuters Newsmaker event.

"There has been considerable debate about this point but the markets now have certainty about government policy," Elderfield said.

The government unveiled the huge price tag last week when the results of a new health check on its four remaining lenders showed they required an additional 24 billion euros to bulletproof them against future shocks.

Elderfield did not say what government policy was in relation to senior bonds in nationalised lenders Anglo Irish Bank and Irish Nationwide, which are being wound down.

Finance Minister Michael Noonan said last week that if either of those banks, which have already swallowed over 34 billion euros of capital between them, needed additional reserves he would consider imposing losses on their unsecured senior debt not covered by a state guarantee.

Some Irish politicians have wanted senior debt holders to help foot the bill despite the European Central Bank, which is helping to keep the country's lenders afloat, saying this would deepen jitters in Europe's bond markets.

Ireland's stress test of its banks is seen as tougher than a similar exercise being conducted by the European Union on some 90 banks from across the bloc but whether it draws a line under the country's banking crisis remains to be seen.

Elderfield said he will be far more intrusive in the banking sector in future, in particular there will be regular checks on how much liquidity or cash-like assets they have to ride any short-term turbulence in markets.

The Irish banks will have to submit a "detailed point-in-time liquidity profile" every quarter starting at the end of June.

Ireland's financial crisis was not solely caused by weak international bank capital and liquidity standards, he said.

"There were home grown elements too, where it is important that the central bank is prepared to act with more rigorous standards than prevail internationally," Elderfield said.

Source Reuters.
Reporting by Carmel Crimmins and Huw Jones; Editing by Hans Peters

Singaporeans to get letters on growth dividends & other payouts

SINGAPORE: From 5 April, 2.5 million Singaporeans will receive letters from the government informing them of the amount of Growth Dividends, CPF Medisave top-ups, Workfare and personal income tax rebates they will individually receive this year.

The letter will also contain information on other household benefits they will receive from Budget 2011. The majority of Singaporeans will receive their letters by the end of this week.

The "Grow & Share" Package, together with other benefits in Budget 2011, will help Singaporeans cope with higher costs of living this year. Most lower- and middle-income Singaporean households will receive benefits that are much larger than the increase in the cost of their household baskets this year.

A typical lower-income two generation household living in a 3-room HDB flat will receive benefits of about S$3,500, which is significantly more than the cost increases they are expected to face. This is true also for a typical middle-income three-generation household living in a 5-room HDB, who will receive benefits of about S$4,000.

Singaporeans will receive S$2 billion in Growth Dividends and CPF Medisave top-ups on 1 May.

Further information on the "Grow & Share" package, including a calculator that will enable Singaporeans to know how much household benefits they should receive, is available on www.growandshare.gov.sg

Source: channelnewsasia.com

USA Employers step up hiring, jobless rate drops

U.S. employment grew firmly for a second straight month in March and the jobless rate hit a two-year low of 8.8 percent, underscoring a decisive shift in the labor market that should help to underpin the recovery.

Nonfarm payrolls rose 216,000 last month, the largest increase since last May, the Labor Department said on Friday. The gain built on the 194,000 new positions added in February.

The quickening pace of job growth has pulled the unemployment rate down a full percentage point since November, the largest four-month decline since February 1984.

A separate report from the Institute for Supply Management showed factory activity grew strongly last month, although it backed off a nearly seven-year high touched in February.

The jobs data confirmed the labor market was strengthening despite signs economic activity had been held back early in the year by bad weather and rising energy prices.

Still, the report was likely not robust enough to push the Federal Reserve off its ultra-easy monetary policy course.

"It provides more evidence that the economy is gaining a self-sustaining momentum, but it also says we still have a long way to go," said Julia Coronado, a senior economist at BNP Paribas in New York.

The economy has recovered only a fraction of the more than 8 million jobs lost in the recession. Economists say job growth between 250,000 and 300,000 a month is needed to have a sizable impact on the pool of 13.5 million jobless Americans.

Investors on Wall Street cheered the data and lifted the blue-chip Dow Jones industrial average to its highest level since June 2008. U.S. government bond prices rose modestly, while the dollar climbed to a more than six-month high against the yen.

FED DEBATE

The improvement in the labor market provides fuel for an already lively debate at the Fed over how soon the U.S. central bank should withdraw its extensive support for the economy.

High unemployment and a lack of wage gains -- earnings were flat in March and have barely grown so far this year -- argue for keeping supports in place, in the view of some officials. Others worry keeping interest rates close to zero for too long will provide a spark for inflation.

In a sign the central bank is unlikely to rush to the exits, the head of the powerful New York Federal Reserve Bank on Friday pushed back against the hawkish rhetoric from some counterparts, saying the pick-up in job growth was welcome but not a reason to reverse course.

"We are still very far away from achieving our dual mandate of maximum sustainable employment and price stability," New York Fed chief William Dudley said.

Investors reacted to the jobs report by raising their bets on the Fed tightening credit by year-end but rowed back a bit after Dudley's cautious comments.

The 0.1 percentage point drop in the unemployment rate, which took it to its lowest level since March 2009, came even as more people entered the labor force, a signal of rising optimism on job prospects. But of those unemployed, 45.5 percent had been out of work for 27 weeks or more.

The improving employment picture could increasingly coax those who had given up the search for work to re-enter the labor market, which could push the jobless rate higher.

"It is always possible that as the job market improves, people will start looking again and the unemployment rate could go up," said Bill Cheney, chief economist at John Hancock Financial Services in Boston. "But the normal pattern is once it starts coming down as rapidly as it has over the last few months, it keeps on going down."

FACTORY MUSCLE

Government employment fell for a fifth straight month, but the private sector added 230,000 new positions, with all but 31,000 of those jobs coming in the service sector. It was the 12th straight month of private sector job gains.

Manufacturing employment growth slowed, while the construction sector shed 1,000 employees. A report issued by the Commerce Department on Friday showed construction spending fell in February to its lowest level since October 1999.

Despite slower jobs growth in the sector, the manufacturing report showed factories continued to help power the recovery in March, with activity rising for a 20th straight month.

Strong March sales results from automakers, which showed high gasoline prices lifting sales of smaller, fuel-efficient cars, suggested more production gains ahead. They also signaled that consumer spending retains some vigor after a weak start to the year.

Source Reuters - by By Lucia Mutikani(Additional reporting by Doug Palmer)

UK Credit conditions set to loosen slightly

Credit conditions in Britain look set to ease slightly over the next three months, with banks keener to offer mortgages, even to borrowers with small deposits, a survey by the Bank of England showed on Thursday.

The central bank's quarterly credit conditions survey showed lenders increased the availability of home loans to those with deposits of less than 25 percent of a property's value in the first three months of the year.

Despite weak prospects for house prices, they expected to continue doing so over the next three months, as well as easing some restrictions based on income multiples.

That will be good news for first-time homebuyers who have struggled to get loans over the past few years.

"Lenders expected that they would continue to increase availability to borrowers with high loan-to-value ratios over the next three months, as well as increase maximum loan-to-value ratios a little," the survey said.

Figures from the Nationwide building society earlier on Thursday showed house prices rose unexpectedly in March for a second consecutive month. However, prices were broadly flat on an annual basis and many economists expect the market to remain subdued.

Lenders reported that defaults on home loans had increased unexpectedly in the first quarter and were expected to rise again in the next three months.

Record low interest rates in Britain have allowed banks to rebuild profit margins on lending after the chaos of the financial crisis. But they are worried default rates will rise once the Bank of England starts tightening monetary policy.

"Lenders expressed concerns over the potential impact of increases in the Bank Rate on default rates," the survey noted.

Banks reported that they expected a small increase in the availability of credit to corporates over the next three months, although they noted that tighter wholesale funding conditions could restrict credit to small companies.

Source: Reuters, by By Peter Griffiths and Christina Fincher