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N. Korea calls South's leader 'psychopath' over missile row
by Staff Writers
Seoul (AFP) Aug 17, 2016


Cathay Pacific H1 profit drops amid China slowdown
Hong Kong (AFP) Aug 17, 2016 - Shares in Hong Kong flag carrier Cathay Pacific plunged Wednesday after the company reported its first-half profit dropped 82 percent from a year earlier due to a slowdown in China and intense competition from other airlines.

The company also warned it faced a "difficult environment" in the coming months as weaker demand and huge fuel hedging losses have hit its bottom line.

Net profit for the first six months of the year plummeted to HK$353 million ($45.52 million), Cathay said in a statement issued to the Hong Kong Stock Exchange, causing stocks to tumble 7.3 percent to HK$11.92 at Wednesday closing.

The figures compared to the HK$1.97 billion recorded in the same period last year and fell short of the HK$1.07 billion median estimate in a Bloomberg News survey of four analysts.

"The operating environment in the first half of 2016 was affected by economic fragility and intense competition," said the carrier's chairman John Slosar.

The company's statement added that a slowdown in the Chinese economy had led to restrictions on corporate travel.

"This adversely affected premium class demand, particularly on long-haul routes," it said.

Revenue for the period also fell 9.3 percent to HK$45.68 billion.

"It all boils down on the China economy. The pie is not getting bigger," said analyst Jackson Wong, associate director of Hong Kong-based Simsen Financial group.

He added that low-cost carriers and major airlines expanding into Asia were "eating up" Cathay's margins.

At the same time, the firm suffered huge hedging losses as the price of oil plunged.

Oil hedging is when an airline locks in fuel prices at a pre-determined level for a certain amount of time.

A slump in crude since mid-2014 should have provided a much-needed boost to their bottom line.

But Cathay's hedging losses widened to HK$4.49 billion from HK$3.74 billion year on year.

Fuel accounts for a huge chunk of most airlines' outlay costs.

"The results are disappointing mainly due to the (oil) hedging loss which increased by 20 percent as well as weak demand... It's a nagging pain," Wong added.

Cathay warned last month that a reduction in "load factor" -- a measure of how full its aircraft are -- was putting pressure on the business.

Passenger yield -- the amount of cash earned from carrying passengers each kilometre and a key measure of a carrier's profitability -- fell 10 percent to 54.3 Hong Kong cents in the first six months of the year.

Cargo revenue also decreased by 17.2 percent to HK$9.42 billion compared to the same period last year.

North Korea on Wednesday labelled South Korean President Park Geun-Hye a "psychopath" after she made a speech slamming Pyongyang's nuclear ambitions and defending the deployment of a US anti-missile system.

In her televised address on Monday, Park had stressed that deploying the Terminal High Altitude Area Defense (THAAD) system was an act of "self-defence" in response to the North's expanding nuclear weapons programme.

A spokesman for the North's Committee for the Peaceful Reunification of the Country said Park's argument was "preposterous" and unfounded.

"This is just a lame excuse and she should know that no one will be taken in by such sophism of a puppet that can do nothing without an approval of her US master," the spokesman said.

"This is no more than nonsense talked by a psychopath," he added in a statement carried by the North's official KCNA news agency.

North Korea has threatened to take "physical action" against the THAAD deployment, saying any South Korean ports and airfields hosting US military hardware would become a target.

Beijing is also opposed to the move, seeing it as a US bid to flex its military muscle in the region and undermine China's own missile capabilities.

US Army Chief of Staff, General Mark Milley, addressed those concerns during talks on Tuesday with his Chinese counterpart, General Li Zuocheng in Beijing.

THAAD is "not a threat in any way to China," Milley told Li according to a US Army statement.

Deploying the system "is a defensive measure to protect South Koreans and Americans from the North Korean ballistic missile threat," he added.

Milley was due to hold talks with top South Korean military officials in Seoul on Wednesday.

The THAAD issue has also been a target of domestic criticism, particularly from those living in the rural South Korean county of Seongju where the first battery will be installed.

Several hundred protestors turned out in Seongju for a visit Wednesday by Defence Minister Han Min-Koo, who sought to ease concerns that the system's powerful radar will pose health and environmental hazards and make the district a military target.

Han began by apologising for the lack of prior notice regarding the planned deployment but stressed that defending the South against North Korean aggression was the ultimate priority.

"Please understand (the government's) desperate resolve to protect people's lives," he said.

More than 900 Seongju residents had their heads shaved on Monday as a mark of protest, and many of those were among the demonstrators who greeted Han with anti-THAAD slogans and demands to scrap the deployment.


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Previous Report
NUKEWARS
S. Korea's Park defends missile shield as residents shave heads
Seoul (AFP) Aug 15, 2016
South Korea's president Monday defended the proposed deployment of a US anti-missile system as an act of self-defence against North Korea, as hundreds of residents shaved their heads in protest at the plan. Tensions have been running high on the divided Korean peninsula since the North carried out its fourth nuclear test in January and followed up with a series of missile tests. South Ko ... read more


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