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International Business News
Biofuels boom hurting Asia's poorest: UN
Biofuels are not only hurting poor consumers in Asia by driving up crop prices, they are also failing to help the region's farmers who have not been able to adapt their production to cash in on the boom, a United Nations report said on Thursday.
"So far, poor rural farmers have not seen the benefits of biofuel production. They lack the wherewithal to extend their land and adapt to new crops. And the impetus for large-scale farming can push the poor off their land, excluding them from biofuels," it said.
"Small poor farmers in particular, have been left behind," UN Conference on Trade and Development economist Cape Kasahara told reporters in Geneva.
The rise of biofuels has come under fire, with Indian Finance Minister P. Chidambaram on Wednesday criticising countries like the United States for diverting farm products to produce biofuels, saying this had led to soaring global food prices.
Food giant Nestle's chief executive Peter Brabeck also said earlier that the growing use of crops such as wheat and corn to make biofuels is putting world food supplies in peril.
AirAsia X buys 10 Airbus planes
AFP, Kuala Lumpur
Malaysian long-haul budget airline AirAsia X on Thursday signed a deal to buy 10 more Airbus A330-300 aircraft, but said plane shortages have jeopardised plans to fly to Britain byyear-end.
The 10 new aircraft with a list price of2.1 billion dollars will bring the carrier's total fleet to 25 aircraft, after it earlier signed an order for 15 of the planes.
"With the Airbus A330-300, our strategy is to focus on two core markets... which is Australia and China," AirAsia X chief executive officer Azran Osman Rani said.
The additional aircraft will be delivered over the next five years, but currently it is operating its inaugural routes to China and Australia's Gold Coast on a leased A330.
Azran said the carrier plans to fly to more Australian and Chinese cities by the fourth quarter of 2008 upon delivery of the A330s and has plans to launch its services in the lucrative Indian market.
However, he said that plans to launch flights to Britain in the fourth quarter of2008 were now "subject to aircraft availability."
"We are out in the market to look for an extra long-range aircraft such as the A340 to enable us to provide a direct service to the UK if we can secure that aircraft," he said.
"Right now, the prices are a bit high because there's a global airline shortage," he said.
Oil prices higher
AFP, Singapore
Oil prices were higher in Asian trade on Thursday, bolstered by a weaker-than-expected energy stockpiles report in the United States, the world's biggest energy user, dealers said.
In afternoon trade, New York's main contract, light sweet crude for May delivery rose 45 cents to 106.35 dollars a barrel from Wednesday's close of 105.90 dollars during US floor trading hours.
London's Brent North Sea crude for May delivery gained 35 cents to 104.34 dollars a barrel.
The US government’s Energy Information Administration (ELA) said its crude stockpiles were unchanged at 311.8 million barrels in the week ending March 21.
That contrasted sharply with market expectations for a weekly gain of 1.8 million barrels.
The inventory stats were bullish across the board," Societe Generale commodity analysts said in a report.
Motorola to split in two
AFP, New York
Motorola announced Wednesday it would split into two independent, publicly traded companies in an effort by the struggling telecom and wireless firm to regain market leadership.
The moves comes as the Schaumburg, Illinois company has come under pressure from billionaire investor Carl Icahn to take steps to boost shareholder value.
The move will split its Mobile Devices division, which has been lagging in the market for handsets and other mobile phones, and its Broadband Mobility unit, which makes wireless modems, TV set top boxes and other equipment.
"Creating two industry-leading companies will provide improved flexibility, more tailored capital structures, and Increased management focus -- as well as more targeted investment opportunities for our shareholders," Motorola chief executive and president Greg Brown said in a statement.