WcP.Market.Watch's blog

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Intercontinental Exchange is cooperating with regulators in their efforts to restrict oil trading, but the Atlanta-based company insists that speculation is not the reason for soaring prices.

The company, commonly known as ICE, operates a number of commodities trading exchanges, including a major oil futures exchange based in London.

They also made it clear they don't believe that's happening. "There is no evidence that regulators or researchers have found demonstrating that excessive speculation is driving crude oil prices," said Sarah Stashak, an ICE spokeswoman.

The cost of a barrel of crude oil has edged closer to its all-time high after OPEC president Chakib Khelil warned that oil prices “will not come down”. Ahead of a meeting with EU officials in Brussels today, he said that the cartel had done all it could to ease prices.  read more »

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WASHINGTON (Reuters) - Google and Yahoo face intense U.S. Justice Department scrutiny of their deal to share some advertising revenue, and the heat will likely increase under a new administration, antitrust experts said. Google, with more than 60 percent of the Web search market, and Yahoo, with 16.6 percent, announced a deal last week that would allow Yahoo to place Google ads on its site and collect the revenue. The firms said Yahoo's cash flow could grow by $250 million to $450 million (127 million to 229 million pounds) in the first year under the deal, which Yahoo sought as an alternative to software giant Microsoft's $47.5 billion buyout offer.

Yahoo and Google describe the deal as very limited. "These are still independent companies who will continue to compete aggressively," said Yahoo lawyer Hewitt Pate of law firm Hunton and Williams. But the deal has raised eyebrows among antitrust lawyers. Bruce McDonald, a Jones Day antitrust attorney and former deputy assistant attorney general, pointed out that the arrangement could lessen Yahoo's incentive to compete vigorously against Google because Yahoo would collect revenue no matter which company placed an advertisement.

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Original Source: Bloomberg

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May 26 (Bloomberg) -- Currencies in Europe will benefit from record oil prices because of the region's energy efficiency, exports to oil-producing nations and vigilance against inflation, according to Barclays Capital. The euro, the British pound, the Swiss franc, the Swedish krona and the Norwegian krone should perform "relatively well" as oil prices rise, wrote David Woo, global head of foreign exchange strategy in London at the bank, the third-biggest currency trader. The U.S. dollar ranks bottom in terms of potential performance as energy prices climb, it said. "Europe is well positioned in the new paradigm, the U.S. is not," Woo wrote in a research note dated May 23.

The dollar slid as much as 8.9 percent to a record low against the euro this year as losses from the subprime mortgage collapse threatened to send the U.S. economy into a recession. At the same time, oil futures have soared to a record as a crude producers sought higher dollar prices to compensate for lower import revenues, according to Barclays Capital. This has created a "vicious circle'' where high energy prices increase the U.S. trade deficit and make other central banks reluctant to lower interest rates, leading to further dollar declines, Barclays Capital said. The euro bought $1.5757 at 5:23 p.m. in Tokyo, little changed from late in New York on May 23. It rose to $1.6019 on April 22, the highest since the common European currency's introduction in January 1999.

The U.S., Canadian, New Zealand and Australian score poorly in terms of their intensity of energy use because of their dispersed populations and focus on manufacturing or commodity industries, Barclays said. European economies are more densely populated, service-orientated and energy efficient, it said. Oil consumption accounts for less than 2 percent of nominal gross domestic product in Norway, Switzerland, the U.K. and Sweden in 2006, compared with more than 3.5 percent in the U.S. and Canada, the report showed. "The U.S. is the world's third-largest oil producer but because of the high energy intensity of its economy, its petroleum trade deficit is not much smaller than the eurozone, which produces no oil," Woo wrote. Japan and Switzerland may also suffer deteriorating trade balances as oil prices rise, the report said. Crude oil for July delivery rose by 96 cents to $133.15 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It reached $135.09 on May 22, the highest since trading began in 1983.

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Next month marks the tenth anniversary of the European Central Bank, guardian of the euro, which itself will turn ten thereafter.

Images courtesy of AP Photo/Haraz N. Ghanbari and AFP

Original Source: Ars Technica

"Mobile carrier Verizon Wireless has joined the Linux Mobile (LiMo) Foundation and has announced plans to adopt the open source software platform. Linux-based phones will be available from Verizon next year, alongside other devices that run competing proprietary operating systems.

The LiMo Foundation is an industry group that was founded by leading handset makers. Their goal is to collaboratively develop a comprehensive Linux-based mobile software stack that can be modified easily and used at no cost on a wide range of hardware devices. Key members include Motorola, NEC, NTT DoCoMo, Panasonic, Samsung, and LG.

Verizon's adoption of Linux sends a clear message about the viability of the open source operating system in the mobile space. Carriers and handset makers seem to recognize that open source software provides them with better value and more flexibility than proprietary alternatives."

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BERLIN: Vodafone, the world's largest mobile phone operator, and Telecom Italia Mobile, the leader in the Italian cellphone market, said they had reached agreements with Apple to sell the multimedia telephone. Vodafone also said it would sell the iPhone in nine other countries: the Czech Republic, Greece, Portugal, India, Egypt, Australia, New Zealand, South Africa and Turkey.

"It was going to be difficult for Apple to continue on an exclusivity basis," said Carolina Milanesi, the research director for mobile devices at Gartner in London. "Opening up to more operators will widen their addressable market and therefore their overall sales potential."

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Original Source

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SYDNEY: "Vodafone Australia is enormously pleased to be included in the agreement to sell the iPhone to our customers later this year," Vodafone chief executive Russell Hewitt said.

"The iPhone has already proved to be extremely popular with customers in other parts of the world and Vodafone is confident that today's announcement will be well received by all Australians who are keen to get their hands on their own iPhone."

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Original Source

Photos courtesy of AP and Reuters