NEW YORK, June 13, (<a href=www.arabtimesonline.com>Agencies): 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 per cent from the previous year. The increase, down from 3 per cent 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 per cent in 2002 to $27.2 trillion, compared with growth of 3 per cent 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 per cent. 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 per cent 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 per cent invested in fixed-income instruments such as bonds and 25 per cent in cash, with just 20 per cent in equities. Their other holdings included 15 per cent invested in real estate and 10 per cent 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. 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 per cent to about 2.6 million, while their wealth rose 4.8 per cent 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 per cent to about 2.2 million, while their wealth fell 2.1 per cent 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 per cent, to 1.8 million people, and wealth, up 10.7 per cent 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 per cent to 300,000, but their wealth rose 2.7 per cent 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 per cent to 300,000, while their wealth increased 4.6 per cent to $1.1 trillion. ** Africa. The region saw its wealthy population increase 4.9 per cent to 100,000, while their wealth rose 4.3 per cent to $600 billion. Also: DUBAI: One out of every 67 people in the oil-rich United Arab Emirates (UAE) is a dollar millionaire, a newspaper said Thursday, citing the "World Wealth Report." The number of "high net worth individuals" in the UAE with financial assets of more than one million dollars grew last year to 45,000 from 40,000 a year earlier, the survey by Cap Gemini Ernst and Young with brokerage Merrill Lynch showed, said Khaleej Times. The report, which was released in Dubai as well as in New York on Wednesday, showed that the number of millionaires around the world had grown to 7.3 million last year, despite a fall in the United States. With the total UAE population estimated at more than three million, the millionaire segment, including nationals and expatriates, accounts for some 1.5 per cent, Khaleej Times said. Expatriates, most of them low-paid Asian labourers, make up 80 per cent of the UAE's population.

<a href=www.un.org>UN

13 June – The United Nations World Health Organization's (WHO) regional office for the Americas today praised 10 Latin American countries for successfully negotiating with pharmaceutical companies a price reduction of drugs for HIV/AIDS treatment, saving up to $120 million a year.

"These savings are a demonstration of what can be achieved when governments and the pharmaceutical companies are truly committed to the well-being of the population," said the Director of the Pan American Health Organization (PAHO), Mirta Roses Periago.

Antiretroviral drugs drastically reduce the incidence of opportunistic infections and substantially improve the quality of life for those living with HIV/AIDS, but costing $1,000 to $5,000 the regimen is out of reach for the vast majority of developing countries. After the negotiation, prices will fall to between $350 and $690, bringing 150,000 more annual treatments for the 10 countries, PAHO said.

The Ministries of Health of Peru, Bolivia, Colombia, Ecuador, Venezuela, Chile, Argentina, Mexico, Paraguay and Uruguay negotiated the agreement in Lima, Peru last week. The negotiations were supported by PAHO, the Andean Health Organism (ORAS) and the Joint UN Programme on HIV/AIDS (UNAIDS).

According to PAHO, seven manufacturers of generic antiretrovirals offered the biggest reductions. There also were reductions in the prices of one brand name drug manufacturer, Abbott Laboratories. All the companies meet the quality requirements established by the negotiating countries, which are based on standards outlined by the WHO prequalification process.

The latest negotiations are the third to take place in the Latin American and Caribbean region. An estimated 60 per cent of the people in the developing world under antiretroviral treatment live in that region.

Fri June 13, 2003 01:46 PM ET NEW YORK (<a href=reuters.com>Reuters) - Oil prices fell nearly 4 percent on Friday after the International Energy Agency said big consuming countries were more comfortably supplied than it previously thought.

U.S. light crude CLc1 tumbled $1.18 to $30.33 a barrel, extending Thursday's sharp losses and pulling prices back from recent 12-week highs above $32. London August Brent crude LCOQ3 fell 87 cents to $26.35 a barrel.

Prices fell as the Paris-based IEA, energy adviser to 26 industrialized nations, said its previous estimate of oil stock levels was 79 million barrels too low.

The agency's revised estimate put oil stocks in the industrialized world for the end of April at 2.439 billion barrels,

"Stocks are still below normal and can absorb some surplus in the third quarter, but I think we have entered a stage when more supply is coming on the market and will impact prices." said Geoff Pyne, oil market consultant to Sempra Energy Trading.

The IEA said the revision did not change its view that global markets were tight. Stocks are still 157 million barrels, or 6.5 percent, below 2002.

"The market is obviously better supplied than we thought as little as two weeks ago, but stocks are still low and fundamentals are still tight, so we need to build more stocks," said Klaus Rehaag, editor of the IEA monthly oil market report.

"The increase in crude stocks may, however, signal some relief for an otherwise tighter heating oil situation later this year," he added

Oil stocks have been drawn down this year by a harsh northern winter and supply disruptions from a strike in Venezuela, ethnic strife in Nigeria and the war in Iraq.

Iraq on Thursday sold its first oil since the U.S.-led invasion nearly three months ago, but looting and sabotage at oil facilities are expected to keep Iraq's exports well below prewar levels for several months.

The delays in Iraq's postwar export resumption enabled the OPEC producer cartel to postpone fresh supply cuts at Wednesday's meeting in Qatar.

OPEC, which controls about half the world's oil exports, decided to meet again in just seven weeks, on July 31, in case the return of Iraqi shipments undermines high prices.

OPEC sets a $22-$28 target range for its basket of seven grades of crude oil. The basket was last valued at $27.48.

Fri June 13, 2003 01:45 PM ET NEW YORK, June 13 (<a href=reuters.com>Reuters) - Emerging sovereign bonds skipped higher on Friday on the back of a new leap in U.S. Treasury prices, piling more gains onto this year's already sizzling returns of some 23 percent.

The benchmark J.P. Morgan Emerging Market Bond Index Plus 11EMJ climbed 0.74 percent on the day as market heavyweight Brazil jumped 0.92 percent. Brazil's heavily traded C bond BRAZILC=RR notched a 0.125 point gain to 92.125 bid.

U.S. Treasury prices extended their march skywards after data showed a surprise slump in U.S. sentiment, fanning speculation that the U.S. Federal Reserve could cut interest rates by a half point this month instead of the quarter point widely expected.

The rate talk helped sink U.S. Treasury yields to fresh record lows, in turn buoying the emerging debt market, where bonds are gauged by the premium investors demand over comparable U.S. Treasures to compensate for risk.

"The U.S. Treasury bond is up almost half a point, so that's driving the rest of the market higher in price terms," said Christian Stracke, head of emerging markets strategy at research firm CreditSights.

Emerging debt has been in fierce demand this year as investors hunt for yields above the rock-bottom ones offered by U.S. Treasuries. Wall Street's optimism for the fiscal policies and reform agenda of Brazilian President Luiz Inacio Lula da Silva has also fired up the debt, translating into strong gains market wide and a dizzying 46.6 percent return for Brazilian bonds since Jan. 1.

This sentiment has also bolstered Brazil's new $1.25 billion global bond BRAGLB13=RR , sold earlier this week. It notched a heady gain of 2.125 points to 101.875 percent of face value on Friday alone.

"There's strong account buying across the board with little supply," paving the way to a strong performance in new issues, said an emerging debt trader.

Venezuela's bellwether bond, however, bucked the day's sanguine trend, hurt by sliding world crude prices and worries about the repercussions of any effort to swap the nation's debt, said CreditSight's Stracke.

The country's finance minister has said the government is looking to ease a heavy concentration of debt payments this year through possible swaps, direct credits from banks and financing for specific projects.

Reuters, 06.13.03, 1:35 PM ET CARACAS, Venezuela (Reuters) - More than 18,000 Venezuelan oil workers fired for participating in an anti-government strike will not be allowed to return to their jobs despite a court ruling that they were illegally sacked, state oil firm Petroleos de Venezuela said Friday. A Venezuelan court on Thursday ruled that rebel oil workers, fired during the December to January strike against leftist President Hugo Chavez, were covered by a state-decreed firing freeze at the time of their dismissals. But Petroleos de Venezuela (PDVSA) said the ruling did not order the reinstatement of the workers who were fired. "We are not ready to accept their return, those who abandoned their posts and failed in their duty with disastrous consequences for the country," a PDVSA statement said. "We will take the necessary measures to guarantee that our principal industry does not fall victim ever again to their anti-national interests," it added. PDVSA fired around half of its work force, including engineers, office workers and managers, for participating in the strike that plunged the oil-reliant economy deeper into recession. The government later used troops and loyal replacement workers to restart the oil sector. On Friday, more than 100 fired workers gathered outside a former PDVSA office in Caracas to celebrate the court decision, blowing whistles and chanting "We are united". "(The court decision) confirms that... the firings are, in addition to being unconstitutional, absolutely irregular," Horacio Medina, a leader of the oil workers' union Unapetrol told reporters. But Unapetrol representatives acknowledged that the government was likely to appeal the ruling to the Supreme Court and that months of legal wrangling lay ahead. "It's a first step," one fired oil executive told Reuters at the gathering. The strike slashed the oil production of the world's No. 5 crude exporter for more than two months. Chavez opponents say his leftist "revolutionary" anti-poverty programs are destroying the economy and that he is attempting to impose Cuba-style communism in the OPEC nation.