Posted on Wed, Jun. 11, 2003 EILEEN ALT POWELL The News Sentinel-Associated Press

NEW YORK - The ranks of the world's millionaires increased in 2002, but at a slower pace than in the past because of weak global economies and stock market declines.

An annual study released Wednesday estimates that there were 7.3 million people in the world with financial assets of $1 million or more at the end of 2002, up 2.1 percent from the previous year. The increase, down from 3 percent in 2001, was the lowest rise in the survey's seven-year history.

The numbers of millionaires actually dropped last year in North America, which includes Canada and the United States, and in Latin America, but rose in other regions.

The wealth these people have amassed, meanwhile, grew 3.6 percent in 2002 to $27.2 trillion, compared with growth of 3 percent in 2001 to $26.2 trillion, the study showed. In market boom years such as 1999, millionaires saw their wealth grow as much as 18 percent.

The "World Wealth Report" was prepared by the Merrill Lynch brokerage firm and the Cap Gemini Ernst & Young consulting firm.

Brokers, bankers and other financial experts watch the figures closely because people with high net worth tend to be their best customers, although they represent just a small fraction of the world's 6.3 billion people.

James P. Gorman, executive vice president of Merrill Lynch and head of its private client group, said that the fact that there were more millionaires in the world despite global economic difficulties "reflects the resilience of this very attractive market segment."

The study predicts, too, that their wealth will increase an average of 7 percent a year over the next five years to $38 trillion at the end of 2007.

Gorman said that wealthy individuals were not hurt as badly by stock market declines because they tend to be conservative investors.

He said that the typical high net worth individual last year had 30 percent invested in fixed-income instruments such as bonds and 25 percent in cash, with just 20 percent in equities. Their other holdings included 15 percent invested in real estate and 10 percent in alternative investments, such as hedge funds.

That shows, he said, that "a properly diversified portfolio is resilient even in the most difficult market environments."

James S. Greene, a vice president at Cap Gemini, said that the wealthy were helped in both preserving and increasing their assets by an average of seven to nine financial advisers, from planners to accountants, brokers and lawyers.

He said that those who are less wealthy may not be able to hire advisers but can benefit from the growing amount of financial data available on the Internet.

"There's an abundance of information available, whether you're worth $30 million or $3 million or $30,000," he said.

He added: "The industry continues to move down the stream, toward that (smaller) investor with tools, products and services."

On a regional basis, the number of millionaires declined in North America, where stock markets fell sharply, and in Latin America, where economic and political turmoil took a toll, the report said. Their ranks increased, meanwhile, in Africa, the Middle East, Asia-Pacific and Europe, it said.

The study's regional breakdown:

_ Europe. The region with the largest number of millionaires, Europe saw the ranks of its high net worth individuals rise 3.9 percent to about 2.6 million, while their wealth rose 4.8 percent to $8.8 trillion.

The report cited strong economic growth in emerging European economies and appreciation of the euro and British sterling against the dollar.

_ North America. The number of millionaires fell 1.9 percent to about 2.2 million, while their wealth fell 2.1 percent to $7.4 trillion.

Problems from weak economic growth were compounded by "a significant drop in stock market capitalization and decrease in savings rates," the report said.

_ Asia-Pacific. This region had the strongest growth in both the number of high net worth individuals, up 4.9 percent, to 1.8 million people, and wealth, up 10.7 percent to $5.7 trillion.

The report said solid economic growth and continued high savings rates outweighed mixed market and currency performances.

Latin America. The number of high net worth individuals declined 3.6 percent to 300,000, but their wealth rose 2.7 percent to $3.6 trillion.

The report noted that economic growth was weak in Brazil and Mexico, while the oil crisis in Venezuela and crash of the Argentine peso sparked recession.

_ Middle East. The number of wealthy individuals rose 4.7 percent to 300,000, while their wealth increased 4.6 percent to $1.1 trillion.

_ Africa. The region saw its wealthy population increase 4.9 percent to 100,000, while their wealth rose 4.3 percent to $600 billion.

ON THE NET www.ml.com www.cgey.com

Las Autoridades de la Universidad Metropolitana tienen el agrado de invitar al público en general al Seminario: CAPITAL SOCIAL ÉTICA Y DESARROLLO: Los desafíos de la Gobernabilidad Democrática

FECHA: Miércoles 25 y Jueves 26 de Junio de 2003. LUGAR: UNIVERSIDAD METROPOLITANA, Auditorio Thomas Alva Edison. Caracas - Venezuela.

PARA INSCRIBIRSE, BAJE LA PLANILLA EN LA SIGUIENTE DIRECCIÓN ELECTRÓNICA: www.unimet.edu.ve

EL PROGRAMA DEL SEMINARIO LO PUEDE VER EN LA SIGUIENTE DIRECCIÓN ELECTRÓNICA: www.unimet.edu.ve

INFORMACIÓN SOBRE TRASLADOS, HOTELES, ETC., EN LA SIGUIENTE DIRECCIÓN ELECTRÓNICA: www.unimet.edu.ve

Lo invitamos a leer el artículo del Dr. José Ignacio Moreno León, donde hace referencia a este importante tema, en la dirección electrónica: www.unimet.edu.ve

Asimismo, lo invitamos al seminario CAPITAL SOCIAL: CAPACIDAD EMPRENDEDORA Y MIPYME'S, el viernes 27 de junio. Más información en la dirección: www.unimet.edu.ve

LO INVITAMOS A VISITAR NUESTRA PAGINA PERMANENTE SOBRE CAPITAL SOCIAL , EN LA SIGUIENTE DIRECCIÓN ELECTRÓNICA: www.unimet.edu.ve  

PATROCINADO POR:

INICIATIVA INTERAMERICANA DE CAPITAL SOCIAL, ÉTICA Y DESARROLLO DEL BANCO INTERAMERICANO DE DESARROLLO (BID).

UNIVERSIDAD METROPOLITANA.

MINISTERIO DE EDUCACIÓN SUPERIOR..

CORPORACIÓN ANDINA DE FOMENTO (C.A.F.)

GOBIERNO DE NORUEGA.

CON EL AUSPICIO DE:

• Oficina de Planificación del Sector Universitario, República Bolivariana de Venezuela. (OPSU).
• Universidad Central de Venezuela.(UCV)
• Universidad Católica Andrés Bello.(UCAB)
• Universidad del Zulia.(LUZ)
• Universidad Simón Bolívar.(USB)
• Universidad Nacional Experimental de Guayana.(UNEG).
• Michigan State University.
• Real Embajada de Noruega.
• Embajada de Brasil.
• Sinergia.
• Banco de Venezuela.
• Procter & Gamble.
• Conciencia Activa. Coperativa Quebrada Azul.
• Fe y Alegría.
• Fundación Polar.
• Proactiva.
• Statoil.

Conozca algunas de las ponencias que serán ofrecidas en el seminario, en la siguiente dirección: www.unimet.edu.ve

Si tiene alguna idea para tratar en los talleres sobre los temas a ser expuestos por los invitados, envíelos al correo electrónico: amorchain@unimet.edu.ve

INFORMACIÓN SOBRE TRASLADOS, HOTELES, ETC., LA PUEDE ENCONTRAR EN LA SIGUIENTE DIRECCIÓN: www.unimet.edu.ve

Para mayor información. Universidad Metropolitana: Tel: 241.48.33 / 243.33.42 Atención: Dra. Cecilia Vicentini: ext.:530 cvicentini@unimet.edu.ve Tel: 241.51.74 Ext: 216 - 320 - 453 Lic. Gladys Vázquez. Ext.: 388 gvazquez@unimet.edu.ve

Wed June 11, 2003 02:55 PM ET By Andrew Mitchell

NEW YORK (<a href=asia.reuters.com>Reuters) - Oil prices forged new post-Iraq war highs on Wednesday after the U.S. government reported another decline in low fuel stocks and the OPEC cartel decided to meet again next month to consider cutting supply.

U.S. light crude in New York CLc1 was up 60 cents at $32.33 a barrel, hitting a peak of $32.50, the highest level in 12 weeks and nearly 35 percent above last year.

In London, benchmark Brent crude LCOc1 was 29 cents higher at $28.37 a barrel.

Prices jumped as the Energy Information Administration said U.S. crude oil stocks fell 4.6 million barrels to 284.4 million barrels last week, dropping more than 12 percent below last year. Traders had expected a small stock build.

Low inventories and delays in the resumption of Iraq's postwar oil exports enabled a meeting of the OPEC producer cartel in Qatar on Wednesday to put off making fresh supply cuts.

The group which controls around half the world's oil exports decided to meet again in just seven weeks on July 31 in case recovering Iraqi exports undermine high prices.

"Because of the uncertainty at the moment on the world market we want to meet as often as possible," said Iran's OPEC governor Hossein Kazempour Ardebili.

"Frequent meetings convey to the market the message that OPEC is being very vigilant and will take measures if necessary, and that keeps prices up," Ardebili added.

Iraq will this month ship its first crude since mid-March but looting and sabotage at oil facilities means that exports will be well below prewar levels.

The 3-month halt to Iraq's crude exports have prevented U.S. crude inventories from rebuilding after disruptions in Venezuela and Nigeria ran down supplies earlier this year.

After falling from 12-year highs near $40 after Middle East oil facilities escaped the U.S.-led invasion of Iraq without much damage, prices have rebounded to levels which can further undermine already weak economic growth.

"Bottom line in this market is that people keep worrying about low stocks and today's statistics did nothing to allay those fears," said Peter Beutel, analyst at Cameron Hanover.

High natural gas prices are bolstering oil demand at a time when consumption normally takes a seasonal dip. Some utilities are able to switch to oil burning for power generation if natural gas prices get too high.

Federal Reserve chief Alan Greenspan warned on Tuesday that that tight natural gas supplies could force up prices across the energy complex in the event of a cold winter.

U.S. crude imports last week dropped 6 percent from near record levels above 10 million barrels per day in recent weeks. U.S. refiners have been running above 96 percent of capacity in recent weeks to prepare for summer vacation gasoline needs.

Gasoline inventories rose 2.6 million barrels to 209.9 million barrels -- easing supply concerns fueled by a recent spate of operational problems at U.S. refineries.

12:06 AM EDT Jun 21 BRAD FOSS

NEW YORK (AP) - Oil prices surged above $32 US a barrel for the first time since mid-March on Wednesday, as traders fretted about scant supplies, the rising price of natural gas and a signal from OPEC that production cuts might be on the horizon.

The weak U.S. dollar is also making it more expensive to buy oil, analysts said.

Crude for July delivery was up 62 cents to $32.35 US on the New York Mercantile Exchange Wednesday afternoon, down from an intraday high of $32.50.

The last time Nymex oil prices closed higher than $32 a barrel was March 17, a few days before the start of the U.S.-led war in Iraq.

Prices then fell sharply after U.S.-led forces quickly secured Iraq's most abundant oil fields and analysts speculated that the country's supply would make up for lost production elsewhere.

As the military conflict wound down, crude futures dropped as low as $25.24 on April 29. But prices have risen steadily since then as it became clear that Iraq's oil industry was in bad shape and that the country's crude would not flood the global market anytime soon.

"The market is starting to wake up to the fact that while Iraq is going to be a big deal down the road, near-term it isn't going to be much" of a contributor to world supplies, said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago.

Iraq, which pumped around 2.1 million barrels a day before the war, is now producing below one million barrels a day.

On the domestic front, the Energy Department reported Wednesday that commercial inventories of crude fell last week by 4.6 million barrels to 284.4 million barrels, or 37 per cent below year ago levels.

Refiners are drawing down inventories in order to meet the nation's gasoline needs at the start of the busy summer driving season. Supplies were already extremely low because of a two-month strike that paralyzed oil production in Venezuela, the world's fifth largest petroleum exporter.

Flynn also cited the rising price of natural gas, a problem that was highlighted before Congress on Tuesday by U.S. Federal Reserve chairman Alan Greenspan. Greenspan warned that high natural gas prices could be a drag on the economy, particularly in the manufacturing sector.

With natural gas futures trading higher than $6 US per 1,000 cubic feet, or roughly double what they were a year ago, manufacturers are choosing to run their plants on crude-derived fuels instead of natural gas and that, too, is driving the price of oil higher.

The Organization of Petroleum Exporting Countries offered little relief to the market on Wednesday, when ministers meeting in Doha, Qatar, decided to keep production levels steady through July. The oil cartel left open the possibility of a production cut at its next meeting on July 31.

Fahnestock & Co. oil analyst Fadel Gheit said that while OPEC ministers publicly expressed fears about the potential for an oil glut once Iraqi production reaches pre-war levels, privately they are "laughing all the way to the bank."

Still, he said speculation by U.S. traders is driving prices higher more than anything else. "It's not because there is a physical shortage," he said. "It's all psychology."

JONATHAN D. SALANT, Associated Press Writer Wednesday, June 11, 2003
(06-11) 18:11 PDT WASHINGTON (<a href=www.sfgate.com>AP) --

Fifteen countries, including U.S. allies Greece and Turkey, have made no significant efforts to stop trafficking in humans and may face sanctions, the State Department said Wednesday.

The number of countries cited this year is lower than the 19 accused by the department last year of not doing enough to prevent people from being taken to other countries against their will.

"In our 21st century world, where freedom and democracy are spreading to every continent, it is appalling and morally unacceptable that hundreds of thousands of men, women and children are exploited, abused and enslaved by peddlers in human misery," said Secretary of State Colin Powell as he released the department's third annual report.

The report warned that problems could develop in postwar Iraq. "In many conflict situations, criminal elements have exploited the breakdown of rule of law and the desperation of vulnerable families and abducted, forced or tricked individuals into prostitution," the report said.

The United States is not immune from the problem; the government estimates that 800,000 to 900,000 people are trafficked annually across international borders worldwide, with 18,000 to 20,000 winding up in the United States.

Human Rights Watch criticized the report, saying it failed to meaningfully evaluate governments' efforts to combat trafficking in persons.

"The report gives undue credit for minimal effort and ignores government practices, such as summary deportation and incarceration that effectively punish trafficking victims," the New York-based group said.

Rep. Chris Smith, R-N.J., who sponsored legislation requiring the report, said progress was being made.

"I am pleased that more countries are taking human slavery seriously, that victims -- most of whom are women and children -- are being protected and traffickers are being prosecuted," said Smith, a member of the House International Relations Committee. "With sanctions looming, there has been significant progress with a number of nations instituting reforms like new laws and protection policies, especially within the last three months."

For the first time, countries that do not take actions to stop human trafficking could face the loss of U.S. assistance, though the government can waive any penalties. The sanctions would take effect Oct. 1.

In addition to Greece and Turkey, the countries facing sanctions are Belize, Bosnia and Herzegovina, Burma, Cuba, Dominican Republic, Georgia, Haiti, Kazakhstan, Liberia, North Korea, Sudan, Suriname and Uzbekistan.

Former Rep. Linda Smith, R-Wash., said she expected many of the countries facing sanctions to make strong efforts to meet the anti-trafficking standards.

"The very fact that there is a report is causing changes in behavior," said Smith, now president and founder of Shared Hope International, a nonprofit organization that fights trafficking and tries to rescue girls and women forced to work as prostitutes.

An additional 74 countries did not meet the minimum standards but made "significant efforts to bring themselves into compliance."

Those countries are Albania, Angola, Armenia, Bahrain, Bangladesh, Belarus, Bolivia, Brazil, Brunei, Bulgaria, Burkina Faso, Burundi, Cambodia, Cameroon, Canada, China, Democratic Republic of the Congo, Costa Rica, Croatia, El Salvador, Equatorial Guinea, Estonia, Ethiopia, Finland, Gabon, Gambia, Guatemala, Honduras, Hungary, India, Indonesia, Israel, Ivory Coast, Jamaica, Japan, Kenya, Krygyz Republic, Laos, Latvia, Lebanon, Malawi, Malaysia, Mali, Mexico, Moldova, Mozambique, Nepal, Nicaragua, Niger, Nigeria, Pakistan, Philippines, Qatar, Romania, Russia, Rwanda, Saudi Arabia, Senegal, Serbia and Montenegro, Sierra Leone, Slovak Republic, Slovenia, South Africa, Sri Lanka, Tajikistan, Tanzania, Thailand, Togo, Uganda, Ukraine, Venezuela, Vietnam, Zambia and Zimbabwe.

Described as complying fully with the standards, which include punishing traffickers and making serious efforts to eliminate the problem, are the following 26 countries: Austria, Belgium, Benin, Colombia, Czech Republic, Denmark, France, Germany, Ghana, Hong Kong, Italy, Lithuania, Macedonia, Mauritius, Morocco, Netherlands, Norway, Poland, Portugal, South Korea, Spain, Sweden, Switzerland, Taiwan, United Arab Emirates and the United Kingdom.

The State Department said it couldn't assess the situation in Afghanistan, though the new government there has condemned trafficking, or in Algeria, Egypt, Iran, Mauritania, Somalia and Tunisia.