QATAR | Page 16 SPORT | Page 11 Dolphins delight crowds at Souq Waqif spring festival UAE claim third place in Asian Cup with win over Iraq INDEX QATAR 2, 16 COMMENT 14, 15 1 – 12 REGION 3 BUSINESS ARAB WORLD 4 CLASSIFIED INTERNATIONAL 5 – 13 SPORTS 6 1 – 12 DOW JONES QE NYMEX 17,209.22 11,899.63 47.62 -207.63 -1.19% -81.03 -0.68% +3.09 +6.94% Latest Figures pu d he R is bl TA 978 A 1 Q since in GULF TIMES SATURDAY Vol. XXXV No. 9619 January 31, 2015 Rabia II 11, 1436 AH www. gulf-times.com 2 Riyals Qatar Airways buys 10% stake in British Airways-owner In brief AFP London REGION | Crime Q Gunmen attack two Americans in Saudi Gunmen yesterday fired at two US citizens on a road in Eastern Province, leaving one wounded, in the fourth anti-Western attack in Saudi Arabia in as many months, police said in Riyadh. “At 2pm today... a car carrying two American nationals... came under fire from an unknown source, resulting in one of them being wounded and hospitalised,” said a police spokesman, quoted by the official SPA news agency. Page 3 PALESTINE | Tensions Israeli settlement plan raises concern The White House yesterday condemned Israeli plans to build 450 new settler homes in the West Bank as “illegitimate and counterproductive” to achieving peace. “We have deep concerns about these highly contentious settlement construction announcements,” said a White House spokesman. Page 4 PAKISTAN | Violence Qatar team members celebrating after winning the Men’s Handball World Championship semi-final match with Poland yesterday. PICTURE: Jayan Orma. Qatar to take on France in world handball final Blast at mosque kills dozens Qatar’s team shakes up handball’s world order A powerful bomb tore through a busy Shia mosque in southern Pakistan yesterday, killing close to 60 people in the country’s deadliest sectarian attack in nearly two years. Page 11 atar became the first nonEuropean side ever to reach a World handball final after beating Poland 31-29 yesterday. In a historic night for the sport at a jubilant and packed 15,300-seater Lu- Q sail Multipurpose Hall, Qatar overcame a hesitant start to beat a dogged Polish side and shake up handball’s world order. Previously, no Asian team had got further than the quarter-finals and only two African sides had ever reached the semi-finals. The hosts, who went into the tour- nament ranked 36, had said at the beginning of the cup that their aim was to reach the last eight. But after three straight victories in the knockout phase against strong European teams - Austria, Germany and Poland - Qatar will now face Olympic and European champions France in tomorrow’s title match. Qatar’s Spanish-born coach Valero Rivera said it was a “great day”. “My aim was to play the final and today I am the most happy man in the world. I am very, very happy for the country,” he said. At the final whistle, Qatar’s team celebrated in front of an ecstatic crowd. Sport pages 1, 2, 3, 4 atar Airways yesterday snapped up almost 10% of International Airlines Group (IAG), parent of British Airways and Spanish carrier Iberia. “As part of efforts to enhance operations and strengthen existing commercial ties... Qatar Airways has acquired a 9.99% stake in IAG,” the company said in a statement. The airline’s chief executive, Akbar al-Baker, said International Airlines Group “represents an excellent opportunity to further develop our westwards strategy”. The stake is worth an estimated £1.1bn ($1.65bn). The three Gulf carriers - Qatar Airways, Emirates and Etihad - have snatched a sizeable share of the longhaul sector, turning their home cities into major hubs on routes to Asia-Pacific destinations. Qatar Airways noted EU rules would not let it take a majority stake. “Qatar Airways may consider increasing its stake further over time although this is not currently intended to exceed 9.99%,” it added. IAG chief executive Willie Walsh expressed delight at having Qatar Airways “as a long term supportive shareholder”. He added in a company statement: “We will talk to them about what opportunities exist to work more closely together and further IAG’s ambitions as the leading global airline group.” IAG, meanwhile, is hoping to buy Irish airline Aer Lingus, which this week backed a 1.35bn euro ($1.53bn) takeover bid. Business page 1 Gulf Times Saturday, January 31, 2015 2 QATAR More govt services complexes soon S ervice administration complexes would be opened in more areas across the country, said HE the Minister of Administrative Development Dr Essa bin Saad al-Nuami, reported local daily Arrayah. The minister said this while opening the Government Service Complex in Al Shahaniya recently. The services complex in AlShahaniya, he said, has been built on the directions of HE the Prime Minister and Minister of Interior Sheikh Abdullah bin Nasser bin Khalifa al-Thani. The aim of the complexes is to make the government services available under one roof at locations closest to one’s residence. The facility gives people the access to the government services in a shorter duration and reduces crowds at the main services centres. The Ministry of Administrative Development, in coordination with other government agencies and authorities that provide similar services to the public, are working on to make their services available to people at the fastest possible time. The complex in Al Shahhaniya is the fifth after the establishment of service complexes in Al Wakrah, Mesaimeer, Umm Salal and Al Zabarah. A Government Services Complex in Al Daayen Municipality will open in February. A similar complex is expected to be ready in Al Hilal in March. Ministry of Economy’s new service hailed A number of Qatari nationals have lauded the new service launched by the Ministry of Economy and Commerce through which it informs the residents regarding the 10 main complaints that the ministry received about the goods sold in the country, local daily Al Sharq has reported. While confirming that the step would contribute to raising awareness about the goods before their purchase, the citizens felt the new service would encourage them to interact with the Consumer Protection Department at regular intervals. The service, it is felt, would raise awareness about the consumer’s rights and obligations. The people feel the information regarding the 10 main complaints about the goods during a month is very useful. While hailing the new service Qatari national Abdul Aziz Marafi has appealed to the residents to be careful while making a purchase. He said the service would force the managers of the shops, malls and supermarkets to be more careful about the quality and genuineness of the goods that they sell to the consumers. Another national Badr alKalbani has said the ministry’s new service would help distinguish between good and bad things reaching the market. Among the 10 main complaints of December that the ministry received and prominently displayed on its website were regarding some brands of the mobile telephones, printer devices, ironing equipment, doors, water tanks, clothes, refrigerators and spare parts. QRC signs deal to help hospital in Jerusalem Q atar Red Crescent (QRC) has signed an agreement with the World Health Organisation (WHO) to provide Al-Makassed Islamic Charitable Society Hospital in Jerusalem $500,000 for medicines and medical consumables. QRC seeks to overcome the severe lack of such essential supplies in the hospital, due to a protracted financial squeeze amid the Israeli crackdown on the Palestinian people and institutions. Recently, the hospital received more than 300 critical cases referred from Gaza following last year’s war, who were all treated for free. It has also accommodated the injured in the West Bank and Jerusalem clashes as a result of the war on Gaza. Obviously, this additional burden caused an overconsumption and subsequently depletion of many crucial medications and medical consumables. In partnership with Islamic Development Bank (IDB), QRC is currently conducting a major project to develop the hospital, to enable it to continue its medical and educational services for the Palestinians. Established in 1968, the 8,000sq m, Aqsa hospital offers cheap medical care for Palestinians at minimal prices to suit the poor and low-income patients, amid the Israeli tight economic blockade. In some cases, the poorest are even served for free. With a capacity of 250 beds, 70 of which are in the ICU, the hospital is run by 800 medical, technical, and administrative staff. It is the largest and oldest medical facility to serve Jerusalem Arab inhabitants and the comers from the West bank and the Gaza Strip. The hospital is also a leading Palestinian medical education institution, and it is recognised by the Palestine Medical Council (PMC) as a training centre for resident physicians in nine specialties: obstetrics and gynaecology, paediatrics, internal medicine, general surgery, orthopaedics, cardiac surgery, neurosurgery, anaesthesia, and diagnostic radiology. QC reaches out to Gaza fishermen Q Students presenting a project. Man jailed for drug peddling A Doha Criminal Court has sentenced an Arab man in absentia to 10 years in jail and imposed a fine of QR400,000 for drug peddling. The court also ordered that the expatriate be deported upon completion of the sentence. The accused was convicted of receiving and dealing in narcotic hashish. According to the prosecution, he had offered to sell hashish to an undercover police agent in exchange for a certain sum of money. The agent agreed to meet the accused to receive the drug, while he arranged for the police to watch the delivery process from afar. Eventually, the drug dealer met the undercover agent and asked him to take him in his vehicle to a place at Al Rayyan area. Then, he left him and came back with a packet containing hashish, which he gave to the agent for a sum of QR1,000. Police overseeing the operation arrested the culprit and a body search yielded more hashish ready for sale. A blood sample of the suspect was also sent to the forensic lab, which confirmed the existence of the drug in his blood. The man confessed to possessing and consuming such drugs during police interrogation. Al-Makassed Hospital in Jerusalem. TAMU-Q honours high school students T exas A&M University at Qatar (TAMU-Q) recognised 15 high school students for their winning projects during two research competitions - the Secondary School Research Experience Programme and the Intel Science Competition Arab World 2014. The winning projects were displayed during the Science and Engineering Showcase at the Link Atrium of the campus. The ceremony was presided over by Dr Mark H Weichold, dean and CEO, TAMU-Q. “We are proud to feature your outstanding winning projects from the Secondary School Research Experience Programme and 5th Intel Science Competition Arab World 2014,” Dr Weichold said. Awqaf receives 66 new mosques “Because of the students’ innovation and perseverance, we saw those award-winning, thought-provoking and inventive projects last week. Those winning projects illustrate how these concepts are fundamental in engineering the world around us and making it a better place,” he added. The competitions this year were intense and made students employ their best interview and presentation skills to compete with more than 100 students from nine countries across Mena. TAMU-Q students, faculty and staff attended the showcase of winning projects to support and encourage these outstanding students. atar Charity (QC) has signed an agreement for the implementation of the training of Gaza fishermen on occupational safety, building new workshops, and building offices for the fishermen’s union in Rafah and Deir al-Balah for worth $250,000. For more than four years, QC has been committed to promote the fishing industry and fisheries in Gaza while assisting 4,000 fishermen and their families, who struggle even in times of peace to ply their trade due to the blockades. This has been part of an agriculture and fisheries programme valued at $10mn that has helped more than 210,000 people under the projects, QC said in a statement. The projects also included rehabilitation and maintenance of fishing boats and creation of 85 equipment storage sheds for fishermen, renovated 118 homes of fishermen, in addition to the rehabilitation of agricultural land and drilling of wells. Last year’s aggression on the Gaza Strip cost fishermen an estimated $9mn, according to official sources. This was split between direct losses amounting to $6mn and indirect losses of $3mn. More than 50 fishing boats were destroyed, includ- ing a similar number of equipment storage sheds. In early 2014, QC’s work with the fishing community included a vocational training programme for the 280 children of fishermen in the Gaza Strip with a budget of $140,000. The 13 vocational courses offered ranged from repair and maintenance of marine engines and electricity, sewing and embroidery, computer and mobile phone repair and maintenance, to language skills and office management. Trainees were also being provided with relevant and related incomegenerating projects prior to the aggression. Fishermen benefit from QC training programmes. Book features NU-Q alumnae A The Ministry of Endowment and Islamic Affairs (Awqaf) received 66 new mosques last year, in addition to 79 houses for Imams and 37 empty plots of land assigned by the state for building new mosques and prayer yards. The new mosques, which are spacious enough for thousands of believers, are located in various areas around the country. One of the new mosques is seen in the picture. book has featured two Northwestern University in Qatar (NU-Q) alumnae - Sara al-Derham and Dana al-Meslemani - and praised them as “up and coming and talented women who innovate and are Qatar’s future.” The book, Qatar Success Stories: Inspiring Women, celebrates the local and international achievements of Qatari women, outlining their contributions to Qatar’s development and influence. “Sara and Dana are extraordinary young women making strides in the media industry. This is the objective of the book: to pay tribute to successful women and their vision,” says author Caroline Carpentier, adding: “After reading the profiles, I hope readers will have a new perception of the crucial role women play in shaping Qatar’s future.” Al-Derham, who graduated in 2014 with a Bachelor of Science degree in Communication, is recognised for her academic successes, commitment to the Dana during her graduation ceremony. local community and excellence as an upcoming filmmaker and director. While at NU-Q, al-Derham played a leadership role in both the Student Union and Culture Club, where she served as president. In 2011, she co-founded ‘Ta2heel,’ a not-for-profit summer programme to help high school students prepare for university life and find their Sara at her graduation. passions. Sara is now in graduate school studying critical media and cultural studies at the School of Oriental and African Studies, University of London. Al-Meslemani graduated from NU-Q with a Bachelor of Science degree in Communication. She has held marketing internships at leading international organistions and is a published photographer in lo- cal and international magazines and journals. In her time at NU-Q she was a student government class representative and graphic designer, as well as ‘Oh Snap!’ treasurer. With her acceptance into King’s College, London, Dana will be studying for a Master of Arts in cultural and creative industries. Dana is co-owner of Al Thumama Arabian Horse Stud in Qatar. Gulf Times Saturday, January 31, 2015 3 REGION/ARAB WORLD One hurt in gun attack on Americans in Saudi AFP Riyadh G unmen fired at two US citizens yesterday on a road in Eastern Province, leaving one wounded, in the fourth antiWestern attack in Saudi Arabia in as many months, police said. “At 2pm today... a car carrying two American nationals... came under fire from an unknown source, resulting in one of them being wounded and hospitalised,” said a police spokesman, quoted by the official SPA news agency. He was “in stable condition”. The two Americans were travelling on a road in Shia-populated Al Ihsaa governorate of eastern Saudi Arabia, he said. A resident of Al Ihsaa said police blocked off a part of the city where a National Guard facility and a Saudi Aramco hospital and training school are located. No other details were immediately available. US embassy spokesman Johann Schmonsees said: “We are aware of the reports and are looking into them.” It was the fourth attack since October on Westerners in the kingdom, which in September joined a US-led coalition against the Islamic State (IS) militant group in Syria and Iraq. Last month, Saudi authorities arrested three IS supporters for allegedly shooting and wounding a Dane in his car in Riyadh. The interior ministry said authorities arrested the suspected gunmen, driver and videographer, who wore masks during the shooting which was filmed and posted online by IS. The suspects, all Saudis, had “trained for two weeks” before the attack, authorities said. Also in December, an assailant stabbed and wounded a Canadian as he shopped at a mall in Dhahran on the Gulf coast. Canada and Denmark are also taking part in the US-led air campaign against IS. And in October, a Saudi-Amer- ican fired from his job with a US defence contractor shot dead an American former colleague and wounded another in Riyadh. In November, Saudi Arabia blamed IS-linked suspects for the killing of seven Shias, including children, in Eastern Province. In a video posted on Tuesday, Al Qaeda’s Yemen branch (AQAP) called for lone-wolf attacks against the United States and the West, with one of the group’s ideologues, Nasser bin Ali al-Ansi, urging supporters to carry out “individual jihad”. A recording was released in November attributed to Abu Mohamed al-Adnani, the IS spokesman, that urged Muslims to attack Westerners by any means, even if only to “spit on their faces”. The video on the Dane being attacked came with an audio recording, purportedly of IS leader Abu Bakr al-Baghdadi, warning that Riyadh will see “no more security or rest”. Last year, Saudi authorities arrested a man wanted for a number of violent crimes, including shooting at the car of two German diplomats in January 2013. The Germans escaped unharmed in the incident in the Shia village of Awamiya in Qatif governorate of Eastern Province. Awamiya has been a focus of clashes between security forces and protesters from Saudi Arabia’s Shia Muslim minority. Several Westerners in Saudi Arabia were killed in a wave of Al Qaeda violence between 2003 and 2007. Top officer dies as Iraq Kurds repel IS offensive AFP Kirkuk I raqi Kurdish forces repelled a major attack by the Islamic State group in Kirkuk province that killed a top officer yesterday, while violence elsewhere left at least 19 dead. The IS assault on areas south and west of the northern city of Kirkuk began at around midnight, sparking fighting with medium and heavy weapons in which the militants were ultimately held off. Kirkuk Governor Najm alDin Karim said Kurdish forces, supported by US-led air strikes, “foiled the Daesh (IS) attacks” which were “carried out toward oil and gas facilities and stations... from three directions leading to the city of Kirkuk”. Damage to Kirkuk oil facilities would pose a serious problem for Iraq, which is counting on crude exports of 300,000 barrels per day from the province in its 2015 budget. Brigadier General Shirko Rauf and five other members of the Kurdish peshmerga forces were killed and 46 more were wounded in the fighting, a police brigadier general and a doctor said, but the final casualty figure for Kurdish troops was unclear. Officials put IS casualties at dozens of dead, but that could not be independently confirmed. The Kirkuk province security committee announced a curfew beginning at 10am yesterday, but it was lifted later in the day, police said. Dozens of Kirkuk residents fired weapons in the air to celebrate the victory over IS, witnesses said. Militants struck inside the city itself yesterday, detonating a car bomb near security headquarters and wounding five people, a police colonel and the doctor said. According to the colonel, armed suicide bombers tried to take up positions on the roof of a hotel in the city, but were killed by security forces before they could do so. In Jalawla, an area in Diyala province south of Kirkuk that was retaken from IS at the end of last year, a suicide bomber attacked peshmerga forces, killing seven and wounding seven more, Brigadier General Barzan Ali said. Violence also struck Samarra, home to a revered Shia shrine that was bombed in 2006, setting off a wave of Sunni-Shia sectarian violence that killed tens of thousands of people. One suicide bomber detonated a car bomb at a police checkpoint at an entrance to the city, while two more struck a police headquarters and a fourth bomber was shot dead. The bombings and sporadic clashes between IS and security forces west of Samarra killed seven people and wounded 31, police and a doctor said. In Baghdad, at least one bomb exploded in a used clothes market in the central Bab al-Sharji area, killing at least five people and wounding 17, officials said. IS spearheaded an offensive that has overrun much of Iraq’s Sunni Arab heartland since June, presenting both an opportunity for territorial expansion and a threat to the country’s three-province autonomous Kurdish region. Several Iraqi divisions collapsed in the early days of the offensive, clearing the way for the Kurds to take control of a swathe of disputed territory they have long wanted to incorporate into their region over Baghdad’s objections. But after driving south towards Baghdad, IS turned its attention to the Kurds, pushing them back towards their regional capital Arbil in a move that helped spark US strikes against the militants. Houthi fighters sit on a patrol truck securing the vicinity of a gathering of followers of the Houthi movement in Sanaa yesterday. US drone war flounders in Yemen, Qaeda gains The drone campaign against Al Qaeda in the Arabian Peninsula has caused public anger in Yemen Reuters Sanaa S choolboy Mohamed Taeiman died this week on a remote Yemeni road, a casualty of a US drone campaign against the local branch of Al Qaeda that seems to be sliding into disarray. The sixth-grader’s death as he returned home with a family friend aroused the kind of anger that has long helped Al Qaeda in the Arabian Peninsula (AQAP) to recruit fighters. But in recent months convulsions in Yemeni politics have pushed President Barack Obama’s strategy close to failure as the group, known locally as Ansar al-Shariah, has broken out of its mountain bastions to stage attacks across the country. While the exact circumstances of Monday’s incident remain unclear, relatives say the boy was travelling in a car with the family friend, Abdullah al-Zindani, to his village in the central province of Marib. Returning from visiting an acquaintance in southern Yemen, they were driving along a 160km road that threads its way between mountains and desert. But just after 11am, mobile phones of people in their home area began beeping with pictures showing the remains of a black Suzuki, hit by what appeared to have been a devastating force. “Zindani’s name started circulating, and I knew my brother was with him,” said Mohamed’s 17-year-old brother, Ezz el-Deen. “My brother was not armed. Mohamed was killed, he was a child,” Alwaleed to launch news channel Saudi Prince Alwaleed bin Talal will tomorrow launch a pan-Arab satellite news channel aimed at challenging established networks in the region. Broadcasting from 1300 GMT tomorrow, his Bahrain-based Alarab News Channel will be the latest player in the Arabic-language television market, after Al Jazeera became the first regional news broadcaster 19 years ago. It will also be a rival for Dubaibased Al Arabiya, established in 2003. Jamal Khashoggi, Alarab’s general manager, said the new channel will be even-handed. “We are not going to take sides,” he told AFP. “I think a news channel should not have a political agenda... We should just be a news channel that provides accurate, objective information.” Khashoggi declined to reveal Alarab’s budget but said the channel will have about 280 staff, including correspondents in 30 countries. Riyadh will be the largest bureau with around 20 employees. said Ezz el-Deen, who himself survived a drone strike that killed his father and brother in 2011. “Bring justice to those who killed him otherwise we will cut off the oil, we will be saboteurs. We will join Ansar al-Shariah,” he yelled down the phone to Reuters. The drone campaign against AQAP, Obama’s preferred tactic in fighting the group that claimed responsibility for the attack on Charlie Hebdo newspaper in Paris on January 7, has always caused public anger in Yemen. Critics say the attacks often kill low-level militants and sometimes civilians, not the top plotters Washington says it goes after. But AQAP has begun winning more allies among Yemen’s majority Sunnis since Shia Houthi rebels began pushing into the capital Sanaa and other areas in September. Last year, a Yemeni army campaign backed by US drone strikes tried to dislodge AQAP from the south, where it had training camps in mountainous regions, mostly co-existing with local villagers. But less than a year later, AQAP attacks have happened in provinces across Yemen, partly because militants were often allowed to leave their bastions in deals with tribesmen who did not want the army to fight in their backyards. The rapid rise of the Iranianallied Houthis as Yemen’s main power has prompted some Sunni tribes to join AQAP in fighting the Zaidi Shias, whom the militants view as heretics. “The Sunni tribes are enemies of the Houthis but they can’t confront them alone,” said Abdulrazzaq al-Jamal, a local journalist who has contacts with AQAP. “For Al Qaeda that is a big victory - for the tribes to join it in one war, that has never happened before.” Evidence of this alliance is growing. Ibb and Hodeidah, two provinces that experienced little AQAP violence before the Houthis arrived, now suffer frequent attacks. In the coastal city of Hodeidah, port worker Sharaf al-Batool said “big operations” by Al Qaeda had become a feature of life after the Houthis deployed there. The Houthis say they are fighting AQAP to protect members of their community, but they are also stirring great resentment. April Longley Alley, of the International Crisis Group, said the Houthis were winning some victories against Al Qaeda. But if they did not help to build a legitimate state, they “are going to unintentionally strengthen (Al Qaeda) recruitment”, she said. Despite a power vacuum since President Abd-Rabbu Mansour Hadi resigned last week in a standoff with the Houthis, Monday’s drone strike in Marib suggests the campaign will continue. Flogging of blogger is postponed again Agencies Riyadh S Alarab News Channel staff are seen on duty at the editorial office in Manama. audi Arabian authorities yesterday postponed the planned flogging of liberal blogger Reif Badawi. Amnesty International said the imprisoned 31-yearold’s lashing was not carried out. Badawi’s last two scheduled floggings - on the two Fridays since his first flogging on January 9 were postponed on medical grounds, after doctors declared him unfit to be flogged, the international rights group said. There was no official explanation for the latest postponement. Badawi was last year sentenced to 1,000 lashes and 10 years in prison for insulting Islam in an Internet forum. He was also fined 1mn Saudi riyals. Badawi’s wife Ensaf Haider, who lives in Canada, said he was in poor health and renewed her call for his release. Also yesterday, Saudi authorities released Suad alShammari, who along with Badawi co-founded the online forum, her family said. The mother of six was arrested in November for allegedly insulting Islam. “I have good news to you. My mother has been cleared of all charges,” al-Shammari’s daughter posted on Twitter. Badawi was initially sentenced to seven years in jail and 600 lashes, but an appeals court overturned the original verdict, sending his case back for retrial. His sentence was then increased to 10 years and 1,000 lashes. 4 Gulf Times Saturday, January 31, 2015 ARAB WORLD Netanyahu denies wife pocketed ‘bottle money’ AFP Jerusalem I srael’s Prime Minister Benjamin Netanyahu yesterday dismissed as “false” reports that his wife Sara had pocketed at least $1,000 worth of public money by returning empty bottles to supermarkets. The reports, which were cause for ridicule in local media, come as the head of the right-wing Likud party prepares to seek re-election in a snap March vote. In a long Facebook post, Netanyahu hit out at “false accusations against me and my wife that seek to topple the Likud and bring the left to power”. “All of this aims to detract attention from what is really important—who will lead the country,” he wrote. Earlier this week, reports emerged that Sara Netanyahu had during her husband’s second term as prime minister (20092013) collected a vast amount of empty bottles bought by the premier’s office and returned them to supermarkets, pocketing the money herself. Over several years, the Netanyahus through this practice earned at least 4,000 shekels ($1,000) of what should have been public money, the reports said. They returned $1,000 to the state in 2013, the Haaretz website reported. But Haaretz also cited a former employee of the Netanyahus as saying that the figure was in fact thousands of shekels higher. The matter is being turned over to Israel’s attorney general’s office, Haaretz said. Local media were quick to ridicule Sara. Haaretz published a cartoon featuring her sitting in her liv- ing room, surrounded by empty bottles and pointing at a TV showing the latest frontier flareup between Israel and Lebanese militant group Hezbollah. “I need them to take something to the supermarket,” she barks down a telephone, pointing at attack helicopters shown on the TV. Pro-Netanyahu freesheet Is- rael Hayom slammed the reports as “defamation” as the country’s political parties prepared for the campaign trail. The snap vote on March 17 will pit Netanyahu’s Likud and other possible right-wing allies against a united centre-left front that includes former justice minister Tzipi Livni’s Hatnuah and the Labor party. Israel plans new settler homes, US slams move Israel publishes tenders for the construction of 450 new housing units in occupied Palestinian territory, a move that critics denounce as a political gesture ahead of a March general election AFP Jerusalem I srael yesterday published tenders to build 450 new settler homes in the occupied West Bank, a watchdog said, in a plan denounced by the Palestinians as a “war crime”. The White House condemned the plan as “illegitimate and counter-productive” to achieving peace. “We have deep concerns about these highly contentious settlement construction announcements,” said White House spokesman Josh Earnest. “They will have detrimental impacts on the ground, enflame already heightened tensions with the Palestinians and further isolate the Israelis internationally.” Settlements watchdog Peace Now tied the move to Israel’s March 17 general election in which Prime Minister Benjamin Netanyahu’s Likud is competing with other right-wing parties for the settler vote. “It is a pre-election grab to establish facts on the ground made by the Netanyahu government,” a Peace Now statement said. Daniel Seidemann, head of the Terrestrial Jerusalem group which also monitors settlement, said the latest plans were the first of their kind to be announced in several months and unlikely to be the last before the election. “It’s the opening of the settlement floodgates,” he said. “This could hardly be an accident,” he said. “It could not have taken place without Netanyahu’s knowledge and consent.” The Israeli construction ministry, headed by minister Uri Ariel of the hardline nationalist Jewish Home party, denied that the timing was politically motivated. “The tenders were offered last year and failed (to attract contractors),” a ministry statement said. “Unsuccessful tenders are automatically reissued by the professional officials at the Israel Lands Administration.” Peace Now said the new homes were to be built in four exiswting settlements across the West Bank - 114 in Adam, 156 in Elkana, 78 in Alfei Menashe and 102 in Kiryat Arba. Seidemann, who had earlier spoken of 430 new settler homes, said the figures given by Peace Now were correct. Palestine Liberation Organisation (PLO) official Wassel Abu Yusef slammed the project. “What the Israelis announced is part of a wider war... against the Palestinian people,” Abu Yusef said. “This is a war crime which should push the settlements issue to the International Criminal Court.” Seidemann, whose group particularly monitors settlement in Israeli-annexed East Jerusalem, predicted that building plans there were likely to be announced soon. “Netanyahu has a tendency, especially when he’s having trouble in the polls, to do something outrageous in Jerusalem,” he said. He pointed to Givat Hamatos, where Peace Now revealed on October 1 that final approval had been granted for the construction of 2,610 settler homes. “I don’t think it’s over,” he said. “I would be very concerned and keep a close eye on things like Givat Hamatos.” A poll published in yesterday’s Jerusalem Post showed Likud rallying, after weeks of lagging behind the Zionist Union alliance of Labour and the centrist Hatnuah party of former justice minister Tzipi Livni. The Post linked the surge to a Hezbollah missile strike on Wednesday which killed two Israeli soldiers, at the time the survey was being conducted by the Panels Research organisation. It gave Likud a projected 25 places in the 120-seat parliament, just ahead of the Zionist Union’s 24. “Last week the Zionist Union was ahead of the Likud by two seats and two weeks ago the lead was three,” the daily wrote. But in a contradictory finding not unusual in Israeli polls, it said that 52% percent of respondents did not want Netanyahu to remain premier. The poll of 514 respondents had a margin of error of 4.5 percentage points. Israel occupied the West Bank and East Jerusalem in the 1967 Six-Day war. Building settlements there is illegal under international law and opposed by the United States and the international community as an obstacle to an eventual peace deal with the Palestinians. Supporters watch Hezbollah leader Hassan Nasrallah give a televised address in the southern suburbs of Beirut yesterday. Hezbollah not seeking war but militarily ready: chief AFP Beirut H ezbollah chief Hassan Nasrallah said yesterday his Shia militant group is not seeking confrontation with Israel but warned their conflict could go beyond Lebanon’s borders in any new war. Its response to any future Israeli attack will no longer be limited to Lebanese territory, he said in an address via video link to thousands of supporters gathered in Hezbollah’s southern Beirut stronghold. He said Hezbollah would no longer respect “the rules of engagement”. “We do not want war... but the resistance is militarily ready, and we are not afraid of war,” Nasrallah said, using the term “resistance” to refer to Hezbollah. “You tested us, do not test us again,” he warned. His address came two days after Hezbollah carried out a missile strike that killed two Israeli soldiers and wounded seven others in south Lebanon’s occupied Shebaa Farms area on the border. The Shebaa Farms have been under Israeli occupation since the 1967 Middle East war. Lebanon says the Shebaa Farms is Lebanese territory, while the UN says it was annexed from Syria. The strike was in retaliation for a January 18 Israeli air strike inside Syria that killed six Hezbollah fighters and an Iranian general. The Iranian parliament’s national security and foreign policy committee head, Alaeddin Boroujerdi, visited Beirut yesterday for the Hezbollah rally. “I want to be clear: the resistance will no longer recognise any such thing as the rules of engagement, or of confrontation,” said Nasrallah, appearing both defiant and relaxed. “It is our right—legally, in human terms and morally—to face the enemy anywhere, any time and in any way we deem appropriate,” he warned. Nasrallah condemned Israel’s air strike on the Syrian-held sector of the Golan Heights as “an assassination carried out in broad daylight”. “We will bear Israel responsible for any (future) killing in cold blood of a Hezbollah youth,” he added. Nasrallah also said the fact that an Iranian general had been killed alongside Hezbollah fighters on Syrian territory proved their “unity in cause, fate and battle”. He said Hezbollah planned its counter-strike against Israel, which he described as “highly professional... and intelligent”, just a few hours after the Golan attack. “They killed us in broad daylight, and we did too,” said Nasrallah, adding that Israel’s strike was at “11.30am or 11.45, and ours was at 11.25 or 11.35”. He added: “They killed and wounded our men, we killed and wounded theirs. Missiles for missiles.” Posters of the Lebanese and the Iranian killed were plastered in the hall where the Hezbollah supporters gathered for the speech. The supporters waved the movement’s green and yellow flags, chanting slogans in support of Nasrallah. Clashes in Sinai after 30 die in militant attacks AFP Cairo E gypt’s army and militants clashed in Sinai yesterday, leaving two children dead, as President Abdel Fattah al-Sisi flew home early from an African summit after militant attacks killed at least 30 people. The top brass vowed to hunt down those behind the violence. Health officials said a sixmonth-old baby was hit in the head by a bullet during the clashes and a six-year-old was killed in a rocket blast in the Sinai Peninsula. Two more people including a 12-year-old were badly wounded. Yesterday’s violence came a day after militants targeted security forces with rockets and a car bomb in North Sinai province in simultaneous attacks claimed by an affiliate of the Islamic State group. Security officials said the bodies of the 30 victims, most of them soldiers, had been flown to Cairo. Sisi pulled out of an African Union summit in Ethiopia and flew home “to monitor the situation”, his office said. Relatives of the members of security forces who were killed in North Sinai during attacks the day before arrive at Al Maza military airport where the bodies had been flown yesterday in Cairo. It was the deadliest wave of attacks since October when 30 soldiers were killed and scores wounded in simultaneous assaults. “The army and police will in- tensify their raids against terrorist and extremist elements in Sinai and across the country,” a military statement said. The fresh bloodshed came despite new security measures. Militants have regularly targeted security forces in the Sinai since Islamist president Mohamed Mursi was ousted by then army chief Sisi in 2013. The militants say the attacks are in retaliation for a government crackdown on Mursi supporters in which hundreds have been killed, thousands jailed and dozens sentenced to death. US State Department spokeswoman Jen Psaki condemned Thursday’s attacks and said Washington “remains steadfast in its support of the Egyptian government’s efforts to combat the threat of terrorism”. Late last year, Washington delivered 10 Apache helicopters to Egypt, which has poured troops and armour into the peninsula, for joint counter-terrorism operations in the Sinai. Yesterday, Iran stressed the need for regional co-operation “to combat the terrorist menace in Egypt”. The main focus of Thursday’s attacks was El Arish, the provincial capital, where militants fired rockets at a police headquarters, a military base and a residential complex for security forces, officials said. This was followed by a suicide car bombing and an attack on a military checkpoint south of El Arish. Separately an army officer was killed when a rocket struck a checkpoint in Rafah, on the border with the Gaza Strip. Officials said at least 62 people were wounded in the attacks. The Islamic State group’s Egyptian affiliate, Ansar Beit alMaqdis, claimed the assaults, saying on Twitter it had “executed extensive, simultaneous attacks in the cities of El-Arish, Sheikh Zuweid and Rafah”. The organisation in November pledged allegiance to IS, which has captured large chunks of territory in Syria and Iraq. Elsewhere, a policeman was killed by a bombing in the canal city of Suez, and a suspected militant accidentally blew himself up in Port Said while planting a device. The October attack, also near El Arish, prompted the authorities to build a buffer zone along the Gaza border to prevent militants infiltrating from the Palestinian enclave. They have also imposed a state of emergency and night-time curfew in parts of North Sinai. “These measures are just ran- dom retaliation that creates more terrorism, and what is worse is that it could make residents sympathise” with the extremists, said Ahmed Abdel Rabo, political science professor at Cairo University. The military said Thursday’s attack was the result of “the failure of Muslim Brotherhood... in spreading chaos on the fourth anniversary of the 25 January revolution”. On January 25, 2011, millions of Egyptians protested against president Hosni Mubarak, eventually forcing him to step down. As Egypt marked the anniversary on Sunday, clashes between protesters and police left 20 people dead, mostly in Cairo. Since Mubarak’s ouster Egypt has been rocked by political and economic turmoil. Militants have killed scores of police and soldiers, mostly in the Sinai. The authorities have blamed these attacks on Mursi’s Muslim Brotherhood, which denies the charges. Ansar Beit al-Maqdis has claimed most of the attacks, including the deadly October assault. Gulf Times Saturday, January 31, 2015 5 AFRICA S Africa’s ‘Prime Evil’ killer freed Reuters Pretoria A partheid death-squad leader Eugene de Kock, dubbed “Prime Evil” for his role in the torture and murder of scores of black South African activists in the 1980s and early 1990s, was granted parole yesterday after more than 20 years in prison. Justice Minister Michael Masutha said that de Kock would be released “in the interests of Masutha at the press conference announcing the outcome on the parole application for de Kock. Private school company denies class split by race Reuters Johannesburg A popular South African private school firm has denied charges of racially segregating classrooms, saying it sometimes separates children based on culture, a policy that has provoked public anger 20 years after the end of apartheid. A group of around 30 parents signed a petition this week against what they said was racial segregation at the Curro Foundation School in Roodeplaat, a town near Pretoria, according to local media reports. The school is one of more than 40 run by Cape Town-based Curro Holdings, which has seen explosive growth since listing on the Johannesburg exchange in 2011, reflecting surging demand for private education from a growing black middle class. Curro chief executive Chris van der Merwe told Talk Radio 702 that the school did not separate students based on race. “This is not so simple as referring to a policy of segregation. Just to remind the folks and supporters that we don’t stand for segregation, not at all,” van der Merwe said, adding that twothirds of its 36,000 students were black. However, he said that in yeargroups with few white children, the students were sometimes kept together in a group to help them make friends within their own “culture”. As soon as there were 12 white children, they were divided evenly between classrooms, he said. Van der Merwe also said that apparent racial separation may be a consequence of choice of language – white Afrikaans parents are likely to opt for tuition in Afrikaans, a language that few black parents are likely to choose. nation-building and reconciliation” and because he had expressed remorse at his crimes and helped authorities recover the remains of some of his victims. The decision, which had been deferred several times over the last year, is contentious in a country still dealing with the legacy of repression and brutality meted out by the white-minority regime that prevailed from 1948 to 1994. “He is not supposed to be freed. The atrocities he did to our people were very bad,” Aniel Motlhake, 35, a financial planner, told Reuters after the decision. Many South Africans, however, believe forgiveness is the only way to leave the memories of apartheid behind. “There are some of our black brothers that killed many white people and also white people that killed,” Joseph Dlamini, a taxi driver in Johannesburg, told Reuters. “At some point we need to forgive one another.” The date of the 66-year-old’s release from Pretoria “C-Max” High Security prison would be kept secret, Minister Masutha added. De Kock’s lawyer, Julian Knight, said he had been unable to contact his client and so could not comment on his state of mind or future plans. As head of an apartheid counter-insurgency unit at Vlakplaas, a farm 20km west of Pretoria, de Kock is believed to have been responsible for more atrocities than any other man in the efforts to preserve white rule. Arrested in 1994, the year Nelson Mandela and the African National Congress (ANC) came to power, he was sentenced two years later to 212 years in prison on charges ranging from murder and attempted murder to kidnapping and fraud. However, at a Truth and Reconciliation Commission set up in 1995 to try to unearth – and, in some cases, forgive – crimes committed by both sides, de Kock came clean about the killing of many ANC activists. Even from behind bars, the bespectacled de Kock continued to cast his shadow over the postapartheid South Africa. In a 2007 radio interview, he accused FW de Klerk, the last white president, of having hands “soaked in blood” for ordering political killings. De Klerk, who won the Nobel Peace Prize jointly with the late Mandela, has denied the allegations. However, in 2012 he met Marcia Khoza, the daughter of ANC activist Portia Shabangu, whom de Kock executed after an ambush in Swaziland in 1989. “We greeted each other and shook hands. His handshake was firm,” she said after the meeting, at which de Kock described how he shot Khoza’s mother twice in the head before pushing the vehicle in which she was travelling down a slope. “I thought I would cry but strangely enough had the courage to continue to listen to him. I was not jolted because I had long forgiven him,” she said. At the same news conference, Masutha, the justice minister, denied medical parole to Clive A file picture of de Kock during his hearing in 1998. Derby-Lewis, an ultra-right wing politician who masterminded the 1993 assassination of Communist Party leader Chris Hani in an attempt to trigger a race war. Derby-Lewis is reported to be dying of cancer. AU call for 7,500-strong anti-Boko Haram force AFP Addis Ababa T he African Union has called for a regional fivenation force of 7,500 troops to defeat the “horrendous” rise of Nigeria’s Boko Haram Islamist militants. The call for collective action came as leaders of the 54-member bloc opened their two-day annual summit in the Ethiopian capital Addis Ababa, where they were addressing a string of crises across the continent. “Terrorism, in particular the brutality of Boko Haram against our people, (is) a threat to our collective safety, security and development. This has now spread to the region beyond Nigeria and requires a collective, effective and decisive response,” AU commission chair Nkosazana Dlamini-Zuma said in a speech opening the summit. Conflicts elsewhere, including civil war in South Sudan and the Central African Republic, as well as a new offensive launched on Thursday by the Democratic Republic of the Congo against Rwandan ethnic Hutu rebels in the east of the country, are also expected to be discussed. The AU Peace and Security Council called for a regional five-nation force of 7,500 troops to stop the “horrendous” rise of the Boko Haram insurgents. The proposed force will have the backing of the AU, and will seek UN Security Council approval, plus a “Trust Fund” to pay for it, Dlamini-Zuma said. More than 13,000 people have been killed and more than a million made homeless by Boko Haram violence since 2009. UN Secretary General Ban Kimoon told African leaders that Boko Haram is “a clear danger to national, regional and international peace and security”. African leaders also named Zimbabwe’s President Robert Mugabe to the bloc’s one-year rotating chair, replacing Mau- ritania’s President Mohamed Ould Abdel Aziz. Mugabe, a former liberation war hero who aged 90 is Africa’s oldest president and its thirdlongest serving leader, is viewed with deep respect by many on the continent – but he is also subject to travel bans from both the United States and European Union in protest at political violence and intimidation of opponents. He gave a welcome speech in which he said Africa’s resources should be protected from outside exploitation. “African resources should belong to Africa and no one else except those we invite as friends,” he said. “Friends we shall have, but imperialists and colonialists no more. Africa is for Africans.” The leaders gathered in Ethiopia are also discussing the economic recovery of countries affected by the Ebola virus, setting up a “solidarity fund” and planning a proposed African Centre for Disease Control. The worst outbreak of the virus in history has seen nearly 9,000 deaths in a year – almost all of them in the west African nations of Liberia, Guinea and Sierra Leone – and sparked a major health scare worldwide. With over a dozen elections due to take place this year across Africa, the focus at the talks will also be on how to ensure peaceful polls – likely leaving little time for discussions on the official summit theme of women’s empowerment. The Institute for Security Studies, an African think-tank, warns that many of these elections “are being held in a context that increases the risk of political violence”. UN chief Ban also told African leaders they “cannot afford” to ignore the wishes of their citizens. “People around the world have expressed their concern about leaders who refuse to leave office when their terms end. I share those concerns. Undemo- A handout picture made available by the Office of the Egyptian President shows African leaders posing for a group picture at the opening ceremony of the African Union Summit in Addis Ababa. The fight against Boko Haram topped the agenda of the two-day summit. cratic constitutional changes and legal loopholes should never be used to cling to power,” Ban said. South Sudan’s warring parties met on the sidelines of the AU talks on Thursday, in the latest push for a lasting peace deal. Six previous ceasefire commitments, however, have failed to end the 13-month-old civil war in the world’s youngest nation. The South Sudan talks, which are being brokered by the regional East African bloc IGAD, are due to resume today. Also topping the agenda is the question of financing regional forces, amid broader debates on funding the AU, a thorny issue for the bloc, once heavily bankrolled by toppled Libyan strongman Muammar Gaddafi. Zimbabwe’s President Mugabe becomes African Union chairman Ninety-year-old Zimbabwe President Robert Mugabe, one of Africa’s most divisive figures, ascended to the rotating chairmanship of the African Union (AU) yesterday, casting a shadow over the continental body’s relations with the West. The only leader Zimbabwe has known since independence from Britain in 1980 assumed the largely ceremonial role when he was handed the AU flag and gavel at a summit in Addis Ababa. In his acceptance speech, Africa’s oldest head of state spoke of the need to guard against foreigners exploiting the continent’s mineral wealth and called for more assistance for African farmers. “African resources should belong to Africa and to no one else, except to those we invite as friends. Friends we shall have, yes, but imperialists and colonialists no more,” he said, to applause from his peers. In some corners, Mugabe is feted as a nationalist hero who triumphed over colonial power Britain on the battlefield and at the ballot box, and who remained steadfast in his commitment to the promotion of black African power in the 34 years since. “Zimbabwe is an important member state, a very committed country,” Algerian Foreign Minister Ramtane Lamamra told Reuters on the sidelines of the summit. In other corners, however, he is seen as a despotic pariah responsible for human rights abuses, rigged elections and turning one of Africa’s most promising nations into a basket case. It is a view shared in the European Union and United States, which imposed travel and financial sanctions on Mugabe and his acolytes after election victories over the MDC in 2002 and 2008 marred by violence and charges of vote-rigging and intimidation. Mugabe denies any wrongdoing. Some Western nations were “not thrilled” about Mugabe’s appointment, a Western diplomat who follows African affairs said, though adding that it would not disrupt relations with the AU. “We are working with the African Union regardless of the president,” the diplomat added. Liberia delays school reopening Ebola likely to stay as communities resist aid: Red Cross Reuters Geneva W est Africa will be lucky to wipe out Ebola this year, as the local population remains suspicious of aid workers, especially in Guinea, the Red Cross said yesterday. The virus is “flaring up” in new areas in the region and not all infections are being reported, said Birte Hald, who leads the Ebola coordination and support unit of the International Federation of Red Cross and Red Crescent Societies. “We are also seeing that in places like Sierra Leone and especially in Guinea that it is flaring up in new districts all the time, with small new chains of transmission, which means that it’s not under control and it could flare up big-time again,” Hald told a news briefing in Geneva. “I think that we should consider ourselves lucky and fortunate if we are able to stop it in 2015,” she said. More than 6,000 Red Cross volunteers are deployed in Guinea, Liberia and Sierra Leone, tracing contacts of those infected, isolating suspect cases and ensuring safe burials, she said. But the Red Cross still has “no access” to some communities in Guinea, Hald said. It saw “quite a number of incidents” of backlash in January. “There are still communities that think, for instance, Ebola is spreading with spraying chlorine, disinfecting of the houses, and it is the Red Cross team that are coming with the chlorine, so they are making that connection,” she said. To de-escalate tensions, the Red Cross is sending police and authorities a day in advance to prepare the villages for the arrival of its teams, Hald said. “If we don’t get full access in Guinea, then we definitely risk that this will become something permanent. If it’s permanent in Guinea, then we know also that it will be in the whole region, because there are porous borders,” Hald said. The number of new confirmed Ebola cases totalled 99 in the week to January 25, the lowest tally since June, the World Health Organisation (WHO) said on Thursday, signalling the tide might have turned against the epidemic. The outbreak has killed 8,810 people out of 22,092 known cases. Some 27 sub-prefectures in Guinea reported at least one security incident or other form of refusal to co-operate in the week to January 21. Two districts in Liberia and four in Sierra Leone reported at least one similar incident, WHO spokeswoman Fadela Chaib said yesterday. The decline in new cases should not lead to complacency, she said: “Because one unsafe burial – only one – can really create a new chain of transmission and cause other cases of Ebola.” Liberia said yesterday that it would delay reopening schools for two weeks in order to better prepare safety measures against the Ebola virus, which has killed more than 3,650 people in the country but now appears to be receding. Liberian schools, shut since August due to the outbreak, had initially been scheduled to reopen on February 2, but the education ministry said it had pushed back that date to allow parents and students more time to prepare. A ministry statement said it wanted to “raise awareness about safety protocols, logistics and training requirements”, adding: “Actual teaching will begin on Monday, February 16, 2015.” Some Liberian opposition parties and members of parliament had called for the reopening date to be moved to March 2, concerned that the Ebola epidemic is not yet fully under control. Liberia and neighbouring nations Sierra Leone and Guinea have been hardest hit in the worst outbreak of the viral haemorrhagic fever on record. The epidemic has killed 8,810 people in total out of 22,092 cases, mostly in the three West African countries, since it was first identified early last year. Guinea reopened schools earlier this month, while Sierra Leone plans to reopen its schools in March. 6 Gulf Times Saturday, January 31, 2015 AMERICAS Romney opts out of 2016 run Reuters/AFP Washington R epublican Mitt Romney bowed out of the 2016 US presidential race yesterday after considering a third run, and told supporters that it was time for the next generation of party leaders to seek the White House. Romney’s decision will probably boost the fortunes of former Florida governor Jeb Bush, a probable presidential candidate who, like Romney, is widely viewed as representing the Republican establishment. Many who had raised money for Romney were already looking elsewhere, concerned that the former Massachusetts governor did not make sufficient changes from his 2012 campaign, when President Barack Obama defeated him. “After putting considerable thought into making another run for president, I’ve decided it is best to give other leaders in the party the opportunity to become our next nominee,” Romney said in a statement he read to supporters in a conference call from New York. Romney told a private donors meeting in New York three weeks ago that he was considering jumping into the race. Yesterday, he sounded reluctant to bow out. The reaction to his potential candidacy was both surprising and heartening, he said, noting that he was leading in many national polls as well as in key swing states. “So I am convinced that we could win the nomination, but fully realise it would have been difficult test and a hard fight,” Romney said. Romney said he still believed he would have the best chance of beating the eventual Democratic nominee because of his message of “making the world safer” and improving the US economy for the middle class. But he said he did not want to make it more difficult for someone who might have a better chance of getting elected. “I believe that one of our next generation of Republican leaders, one who may not be as wellknown as I am today, one who has not yet taken their message across the country, one who is just getting started, may well emerge as being better able to defeat the Democrat nominee,” he said. Romney said that it was “unlikely” that circumstances would change his mind about running. “Accordingly, I’m not ... taking donations; I’m not hiring a campaign team,” he said. Bush said he recognised how hard the decision was for Romney. “Mitt is a patriot, and I join many in hoping his days of serving our nation and our party are not over,” he said in a statement. Romney and Bush were seen to be headed for a heated clash in the early months of the campaign, battling for crucial donor support and the backing of politicos, and hiring top campaign staff. The two of them met in Utah last week. “Politics is a zero sum game. There’s always a winner and a loser in every transaction,” Quinnipiac University Poll assistant director Peter Brown told AFP of Romney’s announcement. “The winner is Jeb Bush. Bush just lost his major competitor to be the center right candidate in the Republican Party.” Romney, who also ran for the White House in 2008, would have faced difficulties raising money in a third run. Some of his fund-raisers said they were inclined to move on to other potential candidates like Bush. Theresa Kostrzewa, a Raleigh, North Carolina, Republican who raised money for Romney in 2012, said she had wanted to hear him say he had learned from his mistakes in 2012 and would run a different campaign. “What I think right now is his time has come and gone,” she said. “I think he missed the boat.” In another troubling sign for Romney, David Kochel, a Republican strategist in Iowa who backed the candidate in past campaigns, was named on Thursday as a senior strategist for Bush. Iowa Republican Renee Schulte, who had been a Romney supporter since 2006 and raised money for him in 2012, said she still thought he would be a great president if elected, but she did not see a path to victory. “I’ve asked questions about what would be different, and I’m still waiting for answers,” she said. “What’s different?” This March 15, 2013 file photo shows Romney at the Conservative Political Action Conference (CPAC) in National Harbour, Maryland. Having lost the Republican primary in 2008, and beaten by Barack Obama in 2012, Romney has decided against a third run. Obama unveils $215mn plan for medical research AFP/Reuters Washington P resident Barack Obama has unveiled plans to plough $215mn into “precision medicine” research, a field that he said provided “boundless” promise for the treatment of diseases like cancer and diabetes. The field – which aims to tailor treatment to individual patients – “gives us one of the greatest opportunities for new medical breakthrough that we have ever seen”, Obama said. The funding would be used in part to collect gene, biochemical, lifestyle and other data from one million volunteers. Scientists believe that vast bank of information could then lead to better classification of diseases – based on molecular causes rather than symptoms – as well as tailored treatment that replaces a “one size fits all” approach. The proposal is part of Obama’s 2016 budget plan, which would first have to be approved by a hostile Republicancontrolled Congress. “The time is right to unleash a new wave of advancements in this area,” Obama said. He said the move would “lay Obama makes remarks highlighting investments to improve health and treat disease through precision medicine while in the East Room of the White House in Washington. A 17 base pair DNA model is seen next to Obama. the foundation for a new generation of lifesaving discoveries”. “There is no telling how many lives we could change,” he said. During his recent State of the Union address, Obama said he wanted “the country that eliminated polio and mapped the human genome to lead a new era of medicine.” Officials hope genetic data from several hundred thousand participants in ongoing genetic studies would be used, and other volunteers recruited to reach the 1mn total. The near-term goal is to create more and better treatments for cancer, Dr Francis Collins, director of the National Institutes of Health (NIH), told reporters on a conference call on Thursday. Longer term, he said, the project would provide information on how to individualise treatment for a range of diseases. The initial focus on cancer, he said, is due partly to the lethality of the disease and partly because targeted medicine, known also as precision medicine, has made significant advances in cancer, although much more work is needed. Out of the $215mn for the initiative, $130mn would go to the NIH to fund the research cohort and $70mn to NIH’s National Cancer Institute to intensify efforts to identify molecular drivers of cancer and apply that knowledge to drug development. A further $10mn would go to the Food and Drug Administration (FDA) to develop databases on which to build an appropriate regulatory structure; $5mn would go to the Office of the National Co-ordinator for Health Information Technology to develop privacy standards and ensure the secure exchange of data. The funding is not nearly enough to sequence 1mn genomes from scratch. Whole-genome sequencing, though plummeting in price, still costs about $1,000 per genome, Collins said, meaning this component alone would cost $1bn. Instead, he said, the national cohort would be assembled both from new volunteers interested in “an opportunity to take part in something historic”, and existing cohorts that are already linking genomic data to medical outcomes. See also Page 8 Funding impasse blocks US Secret Service hires Reuters Washington T he US Secret Service cannot hire new agents for the next presidential election or make improvements at the agency until Congress settles a dispute over funding, Homeland Security Secretary Jeh Johnson said on Thursday. Johnson said in a speech in Washington that uncertainty over the budget for the Department of Homeland Security (DHS), which secures US borders, airports and coastal waters and protects the president, had put security initiatives on hold. These included recommendations made in December by a review panel on the Secret Service, which has been plagued with a series of security lapses, among them a White House intruder and a drone that landed on the mansion’s lawn early on Monday. The agency’s director stepped down in October. Secret Service protection extends to major presidential and vice-presidential candidates and their spouses within four months of a presidential election. The next election is in November 2016, but the review found the agency was stretched “beyond its limits” and needs to hire new agents and provide more training. The spending authority of the DHS expires on February 27 and Republicans in the House of Representatives have tacked measures onto a DHS spending bill to block Democratic President Barack Obama’s executive orders that provide legal protection for about 5mn undocumented immigrants. “This means we cannot invest in the things the independent panel recommended to improve the Secret Service; we cannot hire new Secret Service agents for the coming presidential election cycle,” Johnson said of the budget uncertainty during an address at the Woodrow Wilson Centre. The White House has said it will veto any funding bill that takes money away from Obama’s immigration initiatives. Canada gives spy agency new anti-terror powers AFP Ottawa C Issued in Public Interest by anada’s spy agency will be granted new powers to thwart terror plots in a security overhaul precipitated by twin jihadist attacks three months ago. The October 20 and 22 attacks in Quebec province and in the capital Ottawa, targeting soldiers and Parliament, revealed gaps in Canadian defences against terrorism. In the aftermath of the terror attacks – the first ever on Canadian soil – Prime Minister Stephen Harper pledged to beef up security, recently giving hints of the changes to come in speeches and public appearances. The new legislation will contain measures “designed to help authorities stop planned attacks, get threats off our streets, criminalise the promotion of terrorism and prevent terrorists from travelling and recruiting others”, he said last week. The Canadian Security and Intelligence Service (CSIS), Canada’s spy service, is expected to be granted additional powers to track and detain suspects, including preventing them from travelling abroad for terror purposes. Until now, the Royal Canadian Mounted Police (RCMP) has been responsible for investigating and acting on terror threats. The CSIS was created in the early 1980s after an inquiry into RCMP illegal activities and rights abuses recommended a separation of policing and intelligence gathering. Today, the CSIS hands cases to the RCMP to investigate and make arrests. “We are not under any illusion of the evolving multiple threats that we face,” Harper said on Thursday. “It’s difficult to predict them all, but we must continually evolve and improve our tools to do everything we can in what are obviously dangerous situations for the Canadian public, situations that we are seeing more and more frequently all over the world.” The House bill, which provides $39.7bn for the DHS, has not been taken up yet in the US Senate. The Senate’s number two Republican John Cornyn said on Thursday that he expects a procedural vote next Tuesday on whether to take up the House-passed bill. The bill will need the support of at least half a dozen Senate Democrats to advance, which seems unlikely. Democrats dislike the House language on immigration. Democratic Senator Barbara Mikulski urged the Senate Republican leadership on Thursday to bring a “clean” bill to the floor to fund the DHS, without the amendments the House had passed. “Do not play politics with the security of the United States of America,” she said, citing the January 7 attacks in Paris by Islamist militants. Senate Majority Leader Mitch McConnell has said there will be no shutdown of the DHS, but has not outlined a path to get a bill to Obama that he would sign into law. Lawsuit over loss of tenured post A professor who lost out on a tenured position at the University of Illinois after he made Twitter postings critical of Israel claimed in a lawsuit on Thursday that the university violated his rights to free speech under the US Constitution. Steven Salaita said in his lawsuit that university donors pressured trustees to withdraw their offer of a tenured position due to public criticisms he made about Israeli military strikes in Gaza. Salaita, 39, left a tenured position at Virginia Tech to take the job in Illinois. Salaita is seeking reinstatement of the position as an indigenous studies professor in the American Indian Studies programme at the University of Illinois campus in Urbana-Champaign, and monetary compensation. The university denied that its actions were based on donor influence and said on Thursday that Salaita was aware the offer of a tenured position he received in October 2013 was dependent upon a board vote the following year. Gulf Times Saturday, January 31, 2015 7 ASIA/AUSTRALASIA LEGAL TRIAL CRIME OFFBEAT NUCLEAR Thai officials prosecuted for human trafficking Aussies on Indonesia death row file fresh legal appeal Tourists arrested for nude photos at Cambodia temple Controversy over McDonald’s plan on famed West Lake Fiji N-payout closes ‘unfortunate chapter’ More than a dozen Thai government officials — including senior policemen and a navy officer — are being prosecuted for human trafficking, junta officials said yesterday, as they vowed “zero tolerance” of the trade. Thailand officials have been accused of not doing enough to halt the trade and even being active participants. In June the US dumped Thailand to the bottom of its list of countries accused of failing to tackle human trafficking. The kingdom’s junta, which took over in a May coup, has vowed to crack down on the trade and said yesterday that they had launched a string of prosecutions against senior officials. Two Australians on death row in Indonesia applied for a new judicial review of their cases yesterday in a bid to halt their executions, with their lawyer calling for the men to be given a “second chance”. However, the attorney general’s office in Jakarta said judges would likely reject the request for a fresh judicial review from the leaders of the “Bali Nine” drug-smuggling gang. Andrew Chan and Myuran Sukumaran were arrested in Bali in 2005 and sentenced to death the following year for attempting to smuggle eight kilograms of heroin out of the Indonesian holiday island. Three French tourists in their early twenties have been arrested by Cambodian authorities for taking nude photos of each other inside the country’s famed Angkor temple complex, officials said yesterday. The male tourists were discovered inside the Banteay Kdei temple at the world heritage site on Thursday, Chau Sun Kerya, spokeswoman for the Apsara Authority —the government agency managing the Angkor complex — said. “The temple is a worship site and their behaviour is inappropriate. They were nude,” she said. Keat Bunthan, a senior heritage police official in northwestern Siem Reap province, said many Cambodians would be offended by the tourists’ actions. US fast food giant McDonald’s has served up a super-sized order of controversy by proposing a branch in a historic building in one of China’s most frequently painted landscapes, Hangzhou’s West Lake. The government agency that manages the lake and its surroundings this week posted a proposal to allow a McDonald’s into the former home of the late Taiwanese leader Chiang Ching-kuo, the son of Kuomintang chief Chiang Kai-shek. The plan described the outlet as a coffee shop, suggesting a McCafe. It will have 100 seats in a building with an area of 3,600 square feet and serve French fries among other items, the proposal said. Fiji closed “an unfortunate chapter” yesterday with a compensation payout to soldiers exposed to radiation during British nuclear tests in the Pacific more than 56 years ago, the prime minister said. The payments ended decades of campaigning by veterans and their children for recognition of the serious health problems they suffered after more than 70 Fijians were stationed on Kiritimati, then known as Christmas Island, during the 1957 and 1958 tests. The British government has refused to pay any compensation, but Fiji Prime Minister Voreqe Bainimarama said the Pacific nation could wait no longer. China vows no ‘Western values’ in universities AFP Beijing C hina’s education minister has vowed to ban university textbooks which promote “Western values”, state media said, in the latest sign of ideological tightening under President Xi Jinping. “Never let textbooks promoting Western values appear in our classes,” minister Yuan Guiren said, according to a report late Thursday by China’s official Xinhua news agency. “Remarks that slander the leadership of the Communist Party of China” and “smear socialism” must never appear in college classrooms, he added. China’s universities are run by the ruling Communist party, which tightly controls discussions of history and other topics it construes as a potential threat to its grip on power. The party often brands concepts such as multiparty elections and the separation of powers as “Western”, despite their global appeal and application. Beijing and Hong Kong authorities blamed recent student-led demonstrations in Hong Kong calling for greater democracy in the former British colony on “foreign forces”, although no evidence has been cited. China has tightened controls on academics since Xi assumed the party leadership in 2012, with several outspoken professors sacked or jailed. Xia Yeliang, an economics professor at the prestigious Peking University, was fired from his post in 2013 after a 13-year tenure in a decision he attributed to persistent calls for political change in China. Xia was one of the original signatories of the reformist petition Charter 08, whose main author Liu Xiaobo remains in prison even after winning the Nobel Peace Prize. The university attributed the dismissal to poor teaching, and he moved to the US last year. The minister’s remarks came shortly after Xi called for authorities to increase the party’s leadership of universities, and to “strengthen and improve ideological work”. “We should never allow teachers to complain or vent grievances in the classroom, so as not to transfer negative emotions to the students,” Yuan said according to Xinhua. Teachers must adhere to the “political, legal and moral bottom line,” Yuan added, using a common expression for support of China’s authoritarian political system. He also suggested Xi’s own speeches -recently officially published in book form -should “enter teaching materials, enter the classroom and enter the minds” of students. China has greatly expanded its higher education system as its economy has grown, with the total number of universities and colleges more than doubling in the past decade. But many children of the country’s political and business elite prefer to study at institutions in the US and Europe, including Xi’s own daughter, who has reportedly attended Harvard University since 2010. Most of the Tiananmen Square protesters in 1989 were students from Beijing univer- sities and their demands included increased funding for education and a free press, both firmly under government control today. Commentators on Chinese social media site likened Yuan’s ideas to “brainwashing” and China’s dark past, when teachers and intellectuals were paraded through the streets as enemies of the revolution. “I guess these commands are more strict than those during the Cultural Revolution,” said one user on Sina Weibo, a Twitter-like service, referring to the decade of chaos under Mao Zedong when nearly all schools were shuttered. “Finally, there will be nothing keeping me awake in class, I can sleep all day,” another user wrote. Many of China’s current leaders, including Yuan, were forced to postpone higher education for the turbulent years of the Cultural Revolution, when Communist orthodoxy was the most important lesson. Analysts say this may incline them against change in a range of areas, including education, media and Party ideology. A Chinese province last month announced plans to install CCTV cameras in university classrooms, sparking an outcry from lawyers who say the move would further curb academic freedom. Authorities have in the past installed video equipment in the classrooms of outspoken academics, most notably Uighur economics professor Ilham Tohti, who was sentenced to life in prison for separatism in September. Evidence from the classroom cameras was used to convict the scholar, in a case that was condemned by human rights groups. French judge to probe AirAsia crash AFP Paris F rance has opened a formal criminal investigation into the crash of an AirAsia plane in the Java Sea last month while a French copilot was at the controls, a judicial source said yesterday. A judge will investigate possible “manslaughter” in connection with the crash that killed all 162 people on board. Flight QZ8501 went down in stormy weather on December 28 in the Java Sea during what was supposed to be a short trip from the Indonesian city of Surabaya to Singapore. Only 72 bodies have so far been recovered. On Thursday, Indonesia’s National Transportation Safety Committee, which has been analysing the plane’s black boxes, said that prior to the crash, the aircraft had climbed fast in an area packed with huge storm clouds, and the stall alarms started going off. They also revealed that the Airbus A320-200’s less experienced French co-pilot, Remi Plesel, was flying the plane before it went down, rather than Captain Iriyanto, a former fighter pilot who had around 20,000 hours of flying time. Plesel’s family in France separately filed charges against AirAsia Indonesia for “endangering the life of others” as the airline did not have permission to carry out the flight between Surabaya and Singapore on the day of the crash. “Remi Plesel’s family are delighted at this criminal investigation which, we hope, will reveal the truth,” said their lawyer Eddy Arneton. “It will allow us to finally ask the right questions.” Policemen move in to stop family members (left), whose relatives were onboard the missing Malaysia Airlines Flight MH370, giving an interview to the media, in front of Yonghegong Lama Temple in Beijing yesterday. Next-of-kin bash Malaysian declaration on MH370 AFP Beijing T raumatised relatives of those aboard missing flight MH370 yesterday blasted the Malaysian government for declaring the passengers and crew dead without evidence of the plane’s fate, and rejected compensation offers. Malaysian authorities a day earlier had said they were now classifying the unexplained disappearance of the plane as an “accident” under global aviation conventions and said for the first time that all 239 on board were presumed dead. But relatives in both Malaysia and China — two-thirds of the passengers were Chinese nationals — rejected that declaration. “We call on Malaysia to withdraw their statement. It lacks a basis in evidence,” said Jiang Hui, whose mother was on the plane, calling on authorities to apologise. More than 100 Chinese relatives of the lost passengers are Thorn Birds author McCullough dies AFP Sydney T ributes for renowned Australian author Colleen McCullough, whose romantic saga The Thorn Birds sold more than 30mn copies, poured in yesterday from the publishing world to politics following her death at the age of 77. The best-selling writer, known for her wit and warmth, passed away in hospital on the remote Pacific outcrop of Norfolk Island where she lived for most of the last four decades, after suffering a series of small strokes. Prime Minister Tony Abbott described her as “a unique Australian personality and Norfolk Island’s most famous resident”. “She enthralled readers for decades and she will be missed,” he said. Her publisher HarperCollins Australia said McCullough had fought through File photo shows Colleen McCullough, in a shop doorway in Rome. a string of health problems to continue writing via dictation. “Ever quick-witted and direct, we looked forward to her visits from Norfolk Island and the arrival of each new manuscript delivered in hard copy in custom-made maroon manuscript boxes inscribed with her name,” publishing director Shona Martyn said. “The world is a less colourful place without Col.” Martyn said she was proud to be an author of popular fiction “writing for a broad audience rather than the elite.” McCullough penned 25 novels, including her first, Tim, which was made into a 1979 film starring Mel Gibson. The last, Bittersweet, was published in 2013. The paperback rights for the 1977 novel The Thorn Birds, her second book set on a fictional sheep station, were auctioned for $1.9mn, reportedly a record at the time. In 1983 it became a top-rating television mini-series starring Richard Chamberlain and Rachel Ward, but an unimpressed McCullough told the Daily Mail it was “instant vomit”. The Australian newspaper described her as a “true national treasure” who “told a good story — usually peppered with profanities — about the most intimate details of her life.” Fellow Australian author Tara Moss described her as irreplaceable. “She was fierce, funny and so supportive of other writers. Irreplaceable. RIP Colleen,” she said on Twitter. Literary ageny Selwa Anthony, a close friend of McCullough’s, said: “She wrote what she wanted”. When publishers demanded another Thorn Birds, McCullough wrote a series of thrillers, Anthony told the Sydney Morning Herald. “RIP Colleen Mc- Cullough. I can’t think of anyone who took such a miserable childhood and turned into a life of such luminous achievement,” tweeted 702 ABC Sydney presenter Richard Glover. McCullough, who is survived by her husband Ric Robinson, a Norfolk Islander, was born in Wellington in New South Wales state but spent most of her childhood in Sydney. In interviews, she spoke of growing up amid warring parents, with a mother she once called “deliberately cruel” and an itinerant worker father who was found out after his death to have had at least two other wives. In a happier memory, the Australian Broadcasting Corp described her telling of having once gone to town on a coat-buying mission with money from her mother, but deciding on a typewriter instead. “So I went to town with the five pounds to buy an overcoat, and I saw a Blue Bird portable typewriter for five pounds so I bought that instead,” she said. demanding Malaysia withdraw the statement, according to posts in an online group they use. In Kuala Lumpur, some 20 relatives held a briefing to blast Malaysia’s move and demand answers to a 10-month-old mystery they said has been mishandled from the start and marked by secrecy on the part of the government and flag carrier. “Almost all families are unanimous in our stand that we do not want to declare our loved ones dead without a shred of evidence,” they said in a prepared statement. “We, the next of kin of MH370, are perplexed as to why the Malaysian authorities are jumping the gun in wanting to make any announcements while the search is a long way from completion.” Family members in Beijing, some of whom burst into tears as they spoke to reporters near a Buddhist temple, said they had received little advance warning of the announcement - echoing complaints from furious relatives in Kuala Lumpur. “Malaysia ignored the right of relatives to know the news first,” Jiang added. Malaysia’s declaration opens the door for compensation payments, but many relatives said they wanted answers before any compensation. “We don’t want money. We want the truth about what happened,” said Hu Xiufang, whose only child, daughter-in-law and grandson were on the plane. Chinese media reported on Friday that the father of an MH370 passenger died suddenly at his home three hours after hearing the plane was missing. Li Xiaohui, 60, whose son was onboard, had no known serious medical problems at the time of his death, a state-run outlet called The Paper reported. The plane vanished en route from Kuala Lumpur to Beijing last March 8 in one of history’s great aviation mysteries. Malaysia’s government says satellite data indicates the plane inexplicably detoured to the remote southern Indian Ocean, which they suspect was due to “deliberate” action onboard. Airline chief apologises for daughter’s ‘nut rage’ AFP Seoul K orean Air chief Cho YangHo yesterday apologised for his daughter’s behaviour to a South Korean court, where she is on trial for air safety violations after a now notorious “nut rage” incident. Cho Hyun-Ah faces a maximum 10-year sentence if convicted of the charges, which stem from an episode in December when she allegedly forced the chief purser off a New YorkSeoul flight, compelling the taxiing plane to return to the gate so he could disembark. The 40-year-old, who was a KAL vice president at the time, took exception to being served macadamia nuts she had not asked for — and in a bag, not a bowl — in an incident that has sparked public outrage in South Korea. Speaking from the wit- ness stand yesterday, Cho YangHo said his daughter was to blame for the outburst and that she should not have forced the crew off the plane under any circumstances. “It was all her fault because she could not control her emotions,” he told the court, pledging to reform the airline’s corporate culture after the incident. “I sincerely apologise to the flight attendants involved... and company employees. I also apologise for causing public concern.” Cho Hyun-Ah has been in custody since December 30 ahead of the trial, where she also faces another five years in jail on additional charges of coercing staff to give false testimony and interfering in the execution of duty. She has denied physically assaulting the chief steward, Park Chang-Jin, who says she made him kneel and beg for forgiveness while jabbing him with a service manual. 8 Gulf Times Saturday, January 31, 2015 BRITAIN/IRELAND UK to launch project to analyse 100,000 genomes Reuters London G ene research is getting a boost on both sides of the Atlantic, with scientists in England set to launch a project on February 2 to analyse 100,000 entire human genomes and US President Barack Obama backing a big new DNA data drive. The twin projects show the accelerating work by researchers to understand the underlying basis of diseases and develop medicines targeted to the genetic profile of individual patients. Obama was due to announce the US plan to analyse genetic information from more than 1mn American volunteers as a central part of an initiative to promote so-called precision medicine, officials said (see report on page 6). The 100,000 genomes project in England, meanwhile, was first unveiled by the British government two years ago – but the 11 centres charged with collecting samples will only begin full-scale recruitment from next week. The aim is to complete the programme by the end of 2017. Such large-scale genomic research has become possible because the cost of genome sequencing has plummeted in recent years to around $1,000 per genome. That is a far cry from 15 years ago when it cost some $3bn to get the first human genome. In the case of the British project, all the sequencing will be carried out by US biotech company Illumina, which has pioneered fast and cheap technology to read genetic code. The 100,000 genomes project is focusing on patients with rare diseases, and their families, as well as people with common cancers. The idea is to tease out the common drivers of disease to help develop better drugs and diagnostic tests. In addition to helping doctors understand more about disease, the government also hopes the scheme will make the state-run National Health Service a world leader in science and boost Britain’s life sciences industry. The genome project will actually recruit around 75,000 participants, rather than 100,000, since people with cancer will be providing two genomes – one derived from the healthy cells in their body and one from their tumour. By comparing the two, experts hope to find the exact genetic changes causing cancer. Britain pays tribute to Churchill AFP/Reuters London F ifty years after Winston Churchill’s death, Britain paid tribute yesterday to its war-time prime minister, who remains a touchstone of political life and a reminder of a faded age of global influence. London’s Tower Bridge was raised and the HMS Belfast warship fired a gun salute as the boat that carried his coffin up the River Thames in 1965 retraced its procession, with music from bagpipers on board. Family members cast a wreath in the water at Westminster and Prime Minister David Cameron attended a memorial ceremony in front of a statue of the cigarchomping leader inside the Houses of Parliament. Britain’s current leader, David Cameron, began the remembrance events at a ceremony in parliament, laying a wreath at a statue of Churchill, a man he described as “a great Briton” who should never be forgotten. “A full 50 years since his funeral when the cranes along the Thames dipped low and the streets were lined with vast silent crowds, the sheer brilliance of Winston Churchill remains undimmed,” he said. “He left a Britain more free, more secure, more brave and more proud, for that we will always be grateful to him.” “His enduring legacy and influence on political life and British culture is testament to his formidable strength of character and remarkable achievements,” Cameron said. To this day, British politicians often evoke Churchill to add weight to their arguments, tapping into a deep attachment felt by many who lived through World War II. Cameron’s Conservative colleague, London Mayor Boris Johnson, has just penned a biography entitled The Churchill Factor: How One Man Made History. “For many people he’s not a historical figure – people continue to feel an emotional connection to him,” said Richard Toye, a historian at the University of Exeter. Before World War II, Churchill was seen as a maverick, discredited by the huge loss of life during the poorly-planned Gallipoli campaign of World War I, and with a reputation as a political opportunist for switching sides from the Conservatives to the Liberal Party and back. But the image that endures of Churchill was forged in 1940, when he was appointed prime minister. A charismatic figure in a bowler hat, bow tie, and fat cigar clamped in his mouth, he came to embody resistance to Nazi Germany’s leader Adolf Hitler. Chris Ryland, now 65, travelled to London aged 15 to see Churchill lying in state. “It was a sombre moment. We were aware that something great had passed, whether Churchill or the whole of that era,” said Ryland, who now owns the boat that carried Churchill’s coffin, the Havengore. “Churchill remains hugely relevant today because without him the history of the world would be very different.” Born to an aristocratic family at the height of British imperial power, Churchill had the unquestioning belief in English superiority common to his era, and always had plenty of critics. Black spots include his contempt for Indian leader Mahatma Gandhi, failure to send food to Bengal as a famine killed millions during World War II, and brutality in Ireland on his watch at the War Office after World War I. There was anger in Britain last The Havengore, carrying a wreath, sails through the raised Tower Bridge during a re-enactment yesterday of Churchill’s funeral procession 50 years ago. year after an election candidate was arrested for quoting critical comments by Churchill about Islam, but historian Warren Dockter told AFP it is a “myth” that he was Islamophobic. While he was “a hardcore imperialist”, Churchill nonetheless believed that Islam was “a civilising force”, Dockter said. Broadcaster Jeremy Paxman this month called Churchill a “ruthless egotist” who would be unelectable today. Yet to many Britons, he remains a link to a proud past at a time when much of the country is haunted by a sense of decline. The anti-European Union UK Independence Party has used an image of Churchill making his V for victory sign as a symbol of defiance against Europe – despite Churchill famously having called after the war for a “kind of United States of Europe”. Foreign affairs panel chief frustrated over Iraq report By Denise Marray Gulf Times London Correspondent T he chair of the Foreign Affairs Select Committee to which Sir John Chilcot will give evidence on February 4 on the preparation of his report into the 2003 Iraq war and on the obstacles which remain before he can submit it to the prime minister, is deeply frustrated by the long drawn-out process. Sir Richard Ottaway, speaking to Gulf Times in the aftermath of Thursday’s House of Commons debate on the motion “That this House regrets that the Iraq Inquiry has decided to defer publication of its report until after 7 May 2015; and calls on the Inquiry to publish a timetable for publication and an explanation of the causes of the delay by 12 February 2015”, said that he hoped Chilcot could give a satisfactory explanation about the reasons for the delay in publishing the report which was officially launched on July 30, 2009. Ottaway recalled how in 2004 he had questioned thenprime minister Tony Blair on the floor of the House of Commons about what he knew about Iraq’s weapons capability at the time of the crucial March 18, 2003 debate when Parliament voted on whether or not to go to war. (At the conclusion of the debate, a motion backing the government’s position to go to war with Iraq was passed by 412 votes to 149) Ottaway asked about the claim in a document titled Iraq’s Weapons of Mass Destruction: The Assessment of the British Government, also known as the “September Dossier”, published by the British government on September 24, 2002, that Iraq could use weapons of mass destruction within 45 minutes of an order being given. The official Hansard record of the February 4, 2004 Hutton Report debate records the exchange: “Richard Ottaway (Croydon, South) (Con): The Prime Minister says that all the intelligence about the 45 minutes was made available. As he will be well aware, it has subsequently emerged that this related to battlefield weapons or smallcalibre weaponry. In the eyes of many, if that information had been available, those weapons might not have been described as weapons of mass destruction threatening the region and the stability of the world. When did the Prime Minister know that information? In particular, did he know it when the House divided on 18 March? The Prime Minister: No. I have already indicated exactly when this came to my attention. It was not before the debate on 18 March last year. The honourable Gentleman says that a battlefield weapon would not be a weapon of mass destruction, but if there were chemical, biological or nuclear battlefield weapons, they most certainly would be weapons of mass destruction. The idea that their use would not threaten the region’s stability I find somewhat eccentric.” The 2003 Intelligence and Security Committee Iraqi Weapons of Mass Destruction – Intel- ligence and Assessments report made the following observation about the September 24 dossier: “The dossier was for public consumption and not for experienced readers of intelligence material. The 45 minutes claim, included four times, was always likely to attract attention because it was arresting detail that the public had not seen before. “As the 45 minutes claim was new to its readers, the context of the intelligence and any assessment needed to be explained. The fact that it was assessed to refer to battlefield chemical and biological munitions and their movement on the battlefield, not to any other form of chemical or biological attack, should have been highlighted in the dossier. “The omission of the context and assessment allowed speculation as to its exact meaning. This was unhelpful to an understanding of this issue.” Ottaway observed: “The government had the benefit of information from the entire Intelligence services. What came out was that the weapons of mass destruction that we were going to remove because it was reported that they threatened the security of the world were in fact battlefield weapons – in other words they were defensive rather than offensive weapons – they were not strategic – that is at the heart of the complaint. “I asked Tony Blair if he knew that when he made his speech to the House of Commons before we voted to go to war and he said that he did not know this at that time. “He said to me on the floor of the House that he didn’t know Churchill was acutely conscious of his own legacy, shaping his memoirs to “put himself in the best possible light”, Toye said. Randolph Churchill, born two days before his great-grandfather’s death, told AFP that his ancestor lived on in the freedoms enjoyed in Britain to this day. “Fifty years on, what I feel is we’re really doffing our hat to Churchill,” he said. Thousands of visitors still flock to his homes and the underground bunker from which he governed Britain during the Blitz air raids. Auctions of Churchill’s possessions draw significant interest and extracts from his speeches, including the famous “we shall fight them on the beaches” address, still draw millions of listeners on YouTube. Present-day politicians in Britain can only dream of the kind Cameron addressing a wreath-laying ceremony at the Houses of Parliament marking the 50th anniversary of Churchill’s state funeral. of popularity enjoyed by a man whose biographer Roy Jenkins called the “greatest human being ever to occupy Downing Street”. Churchill died on January 24, 1965 aged 90. Queen Elizabeth granted him the rare honour of a state funeral and more than 320,000 people filed past his coffin to pay their respects during three days of lying in state. His funeral was the world’s largest at the time, attended by leaders from more than 100 countries, as well as the queen, another unusual tribute for a prime minister. The procession began at parliament, with the chimes of Big Ben silenced for the rest of the day, and the coffin was taken to St Paul’s Cathedral for the funeral service. He was buried in Bladon, Oxfordshire, in central England. Greece’s poll outcome stokes anti-austerity mood in Ireland AFP Dublin I Ottaway: There is a lot of frustration that this report isn’t out before the election. that and I leave it to others to make a judgment as to whether or not they believe him. “I haven’t seen the intelligence but two inquiries in 2003 and 2004 have said that the intelligence was that they were battlefield weapons. This is all in the public domain.” He concluded: “Of the four inquiries that we have had so far, none of them had completely unlimited access to all the information, and the most likely thing to come out of the Chilcot inquiry is the motive for going to war. “There is a lot of frustration that this report isn’t out before the election; this was a political decision to go to war, and the way the public pass judgment on political decisions is at General Elections and so it would be thoroughly appropriate that if it was available it should be got out now. But it isn’t available. “What I want Sir John to do is to explain why there is a delay.” reland’s economy is speeding ahead and unemployment is dropping, but the coming to power of a radical new government in fellow eurozone member Greece has revived debate about the pain of austerity. Support for opposition parties – including for the radical leftwing Sinn Fein party – has been surging for months on the back of their anti-austerity stance, and Syriza’s win in Greece is an extra boost. Sinn Fein leader Gerry Adams spoke to Prime Minister Alexis Tsipras this week, backing the new Greek leader’s campaign for a European Debt conference like the one that wrote off German debt after World War II. “Austerity has heaped severe hardship on citizens in Greece, Ireland and across Europe,” Adams said, according to a statement on Sinn Fein’s website. The Greek vote “has given renewed hope to working people across Europe, including Ireland, that there is a fairer and more just way to deal with the economic challenges that we face”, he said. Ireland estimates its 2014 growth at 4.7 percent and forecasts 3.9% for 2015, while unemployment is predicted to fall to 9.8% this year. The country is no longer taking on new EU/IMF bailout loans but is still stuck with repayment and Sinn Fein wants a renegotiation, in particular of the €64bn pumped into the banks since 2008. Despite some similarities, the Irish government has stressed that it is not Greece, and points to the positive macroeconomic data. “There’s a situation here where media speculation and political speculation is ahead of where the Greek government is,” said Simon Harris, junior minister at the department of finance. “We don’t know what the Greek government is going to ask for.” Harris also pointed out that Ireland had already restructured its bailout debts four times by striking deals to repay the International Monetary Fund (IMF) loans early, cut interest rates, extend maturities and restructure loans. This week the IMF said Ireland’s recovery is off to a “good start” but efforts were needed to put “the public debt on a firmly downward path.” “Ireland’s medium term prospects are positive, yet euro area stagnation poses downsides,” the IMF said in its latest post-bailout review. The introduction of new water charges from January 1 this year, as well as a string of political mishaps in 2014, has seen support for the governing parties fall to an all-time low in recent months, although it rebounded slightly in a poll last weekend. The water tax was the final piece of almost €30bn in tax hikes and spending cuts since 2008 which has hit all citizens, in a country where unemployment surged to 15.1% in 2012. This month, however, there were modest tax cuts from Ireland’s first expansionary budget in seven years and cabinet ministers sold the message of economic recovery at every opportunity. But the outcome of the Greek vote proves results deemed incredible “even five years ago are now a possibility”, according to Nat O’Connor from Tasc, an independent think tank. “We now have the potential for a similar electoral upheaval here in Ireland but also in Portugal and Spain,” he said. Ireland is facing the possibility that neither of the two historically dominant parties, Fine Gael or Fianna Fail, will be in power after an election for the first time since the foundation of the state. With a general election due in 2016, the Greek negotiations on debt re-restructuring will be watched closely in Ireland. “If the Greeks get some kind of better deal because of the government that they voted in, then the Irish will follow suit and say this is the real answer to our problems,” political commentator Johnny Fallon told AFP. But chief economist with KBC Bank Austin Hughes, while acknowledging similarities between Greece and Ireland, says there are striking differences. “The critical lesson is that you need to have an economy that produces at least the promise of rising incomes and employment and Ireland is probably at that stage now,” he said. He pointed to the flexibility of the Irish economy and its export-driven recovery as well as the extensive structural reforms already undertaken by Dublin. “The challenge facing government is striking a balance that makes people confident that they are on the right road but that their expectations do not become detached from what the economy can reasonably deliver,” Hughes said. Gulf Times Saturday, January 31, 2015 9 EUROPE Russia wants UN Security Council help on conflict zone flight risk Reuters Toronto R ussia is calling on the United Nations Security Council to help protect civilian jets from anti-aircraft weapons after the downing of a Malaysian airliner in Ukraine last year. The Russian position comes after it dismissed proposals by Erdogan says he’s no sultan AFP Istanbul T urkish President Recep Tayyip Erdogan brushed off criticism that he’s trying to amass sultan-like powers, saying he really just wants to be more like Britain’s Queen Elizabeth II. Erdogan told state-run TRT channel on Thursday that his desire for an expanded presidential role would not undermine democracy – and he pointed to the UK as an example. “In my opinion, even the UK is a semi-presidency. And the dominant element is the Queen,” Erdogan said. The UK is a constitutional monarchy, governed by a parliamentary system, but its hereditary monarch wields only symbolic power. Erdogan’s comments came after fresh criticism from the opposition that he would act like an “Ottoman sultan” once his presidential role has been boosted. Erdogan said that leaders of presidential systems in the US, Brazil, South Korea, and Mexico are not accused of acting like monarchs. “I mean, why is it only a monarchy when an idea like this is floated in Turkey?” Erdogan asked. “We need to speed up to close the gap in this race,” he said. “The biggest advantage ... would be in abolishing policy-making through multiple channels.” Erdogan became president in August after more than a decade as prime minister, but the opposition accuses him of transforming the state by imposing a gradual Islamisation and riding roughshod over democracy. The August elections were the first time a Turkish president, traditionally a ceremonial role, has been directly elected by the people. In the wake of his victory, Erdogan insisted he now has a popular mandate to be an active and powerful leader. Turkey is set to hold parliamentary elections in June, with the pro-Erdogan ruling Justice and Development Party (AKP) aiming for a thumping majority to change the constitution and boost Erdogan’s presidential powers. “A new constitution is a must for a new Turkey,” Erdogan said. the UN’s aviation body, the International Civil Aviation Organisation (ICAO), as “superficial”. The Security Council is much more powerful than Montrealbased ICAO, a specialised agency that sets safety standards for global aviation. Its guidelines typically become regulatory requirements in its 191 member states. The ICAO needs “a mechanism of co-operation with the UN Security Council, state military authorities and military-political unions in order to timely detect potential threats to civil aviation flight safety and to respond to these threats”, said Russia’s Interstate Aviation Committee, which oversees civil aviation in the former Soviet Union. Russia outlined its stance in documents released ahead of a major UN air safety conference in Montreal from February 2 to February 5. The ICAO’s proposal, which is on next week’s agenda, has gotten US backing. The ICAO has been under pressure to come up with new systems to protect aircraft from risks in conflict zones after Malaysia Airlines MH17, flying from Amsterdam to Kuala Lumpur, Last week, Reuters reported that the United States would back an ICAO proposal on flight safety over conflict zones, which would test a central website where states and agencies could publish public warnings about conflict zones. Russia has not commented on that proposal, but in October the country lashed out in a paper obtained by Reuters, calling the ICAO’s ongoing work on conflict zones “superficial” and outside its mandate. Russia is in an unusual position at the ICAO. Blamed by the West for supplying rebels with anti-aircraft missiles, a charge it denies, it must still work closely with Ukraine and other powers at the ICAO to keep the global aviation system running smoothly. Ukrainian separatists abort Minsk peace talks Reuters Donetsk/Minsk C ivilians were killed on both sides in heavy fighting in eastern Ukraine yesterday, while an attempt to reopen peace talks in neighbouring Belarus was aborted before it began. Rebel delegates flew to the Belarus capital Minsk, only to announce that no talks would take place and they were flying straight back to Moscow. Any talks would be the first since a five-month-old ceasefire collapsed with a new rebel advance last week. The main rebel stronghold Donetsk echoed to the sound of heavy artillery fire, including salvoes from multiple rocket launchers and heavier thuds from artillery coming from the direction of the airport, a constant battlefield. A Reuters cameraman in Donetsk saw four covered bodies near a cultural centre that had been hit by artillery while residents were queuing outside for humanitarian aid. A fifth body lay in a badlydamaged car nearby. A woman was weeping by one of the bodies. A kilometre away, a sixth dead person lay where a trolleybus had been hit. The separatists said the total death toll in those two strikes was seven, blaming government forces. Kiev said the shelling was carried out by the rebels to ruin the chance of peace talks. Both sides have made similar allegations throughout the conflict, which are impossible to verify. “We are already used to this artillery and there’s nothing we can do about it. Our boys are defending us,” said Alla, a shopkeeper in downtown Donetsk. In Debaltseve, east of Donetsk, seven civilians were killed yesterday by separatist shelling of their homes, regional police chief Vyacheslav Abroskin said in a Facebook post. Earlier he reported another seven civilians killed in and around the town in the previous 24 hours. The government-held town is a key rail and road junction in the east. It and nearby Vuhlehirsk have come under fierce attack from rebels encircling government garrisons there, with water and electricity supplies cut off. In the nearby rebel-held frontline town of Horlivka, eight civilians were killed in rocket attacks the previous day, the mayor’s office said. Ukraine authorities did not comment. Kiev’s military said five of its servicemen had also been killed and 23 wounded in fighting in the past 24 hours, describing the situation in the conflict zone as “hard”. “They are repeatedly using Grad (missiles), artillery, mortars, tanks and rocket launchers,” spokesman Andriy Lysenko said in a televised briefing. The past week has seen by far the worst fighting since the ceasefire was signed five months ago, with rebels announcing an offensive that Kiev says amounts to a repudiation of the truce. Nato and Kiev accuse Russia of sending thousands of troops Men look at the covered bodies of victims at a site hit by shelling in Donetsk yesterday. to support the rebel advance with heavy weapons and tanks. Moscow denies it is directly involved in fighting over territory that the Kremlin refers to as “New Russia”. European Union foreign ministers agreed at an emergency meeting on Thursday to extend for another six months economic sanctions against Russia that had been due to expire soon. Washington has promised to tighten its own sanctions, which have helped feed an economic crisis in Russia. The arrival of two rebel negotiators in Minsk was the first sign of a reopening of negotiations since the rebels launched their latest advance. But neither Kiev nor Moscow confirmed that they were ready for talks, and one of the rebel delegates, Denis Pushilin, swiftly announced they were heading back to Moscow. He said the rebels were prepared to press on with their offensive and seize more territory if artillery continues to fall on their cities. “If shelling resumes, then we reserve for ourselves the right to continue the offensive and go to the very borders of Donetsk and Luhansk regions,” he said, referring to the two provinces where separatists have declared “people’s republics”. The Ukrainian foreign ministry said it was ready to partici- pate in talks but was waiting for an agreement on draft documents. The immediate fear of Kiev and its Nato allies is of a rebel offensive on Mariupol, with 500,000 people by far the biggest government-held city in the two restive provinces. It was hit by shelling last Saturday which Kiev said killed 30 civilians, although the rebels have since denied it is a target. They halted at its gates during their last big advance five months ago. The rebels have said their principal aims for now are to push government guns out of range of their cities and make their positions more secure by “straightening out the front” – choking off a government-held pocket around Debaltseve. Both are moves that would make existing rebel areas more defensible if, as many Western countries suspect, Moscow’s aim is to pursue a stable “frozen conflict” in eastern Ukraine. A rebel assault on Mariupol, with the potential to unleash unprecedented urban warfare, is a far more dangerous prospect. While the rebels say that they are not trying to capture it yet, they have repeatedly said they reserve the right to do so. The leaders of France and Poland, two of Europe’s strongest advocates for tighter sanctions against Russia, met in Paris and called for EU relations with Moscow to be “rethought”. Donetsk, a city of a million people before the war, has become a desolate frontline town. “I have nothing to sell to leave. I am a pensioner and if I have to die here, so be it,” said Leonid, in his 70s, dressed in a shabby winter coat and leaning on a cane. He and his wife moved in with relatives after their apartment was destroyed a month ago. He has received no pension since Ukraine cut off funding three months ago. Dozens of cars and trucks queued at a Ukrainian checkpoint outside Donetsk, where a crowd of people were filling in applications to enter government-held territory. “All civilians should be evacuated, but neither (the rebels) nor the Ukrainians could care less, and we are dying every day,” said schoolteacher Martina Alexandrovna, 46. Italy presidential vote heads into third day AFP Rome I German military in poor state: report Germany’s armed forces are overstretched to unacceptable levels and their equipment and accommodation is substandard, according to an annual report released this week by the ombudsman for German military forces. The German Army is at the very limits of its capabilities, Hellmut Koenigshaus – the armed forces commissioner, whose job also is to facilitate legislative oversight of the military – said in Berlin as he published a 115-page report on the state of the armed forces. “The year 2014 was a year of truth for the Germany army,” he said as he presented the annual report. “The arrears in the physical maintenance and repairs to equipment have reached a level that cannot continue much longer.” “A lot of items that are not absolutely relevant for running operations has been neglected.” Koenigshaus said that the defence ministry had concentrated on equipping soldiers fighting abroad, but had neglected the army at home. That resulted in about 38% of barracks being substandard and 9%, or 269 out of 3,000, uninhabitable. was shot down in Ukraine last July, killing all 298 people on board. The incident occurred during fighting between Ukraine and pro-Russian separatist rebels in eastern Ukraine. The United States said the plane was hit with a ground-toair missile by rebels. Russia says a Ukrainian military aircraft downed it. Assistants open a ballot box at the end of the vote session at the Chambers of Deputies in Rome yesterday. The Italian lawmakers failed to elect a new president yesterday, leaving Prime Minister Renzi hoping to push through his candidate only in a fourth round this morning, when the required threshold of votes is lower. taly’s presidential election will go into a fourth and likely decisive round today more after two more inconclusive votes yesterday. Under constitutional rules, a fourth round of voting sees the threshold for victory dropped to a simple majority in the 1,009-member electoral college, down from the two-thirds required in the first three rounds. The fourth vote will take place this morning with the candidate of Prime Minister Matteo Renzi’s ruling Democratic Party (PD) looking well placed to succeed Giorgio Napolitano as head of state. Renzi on Thursday declared his support for Sergio Mattarella, 73, a Sicilian judge at the constitutional court who is littleknown to the general public. But he is widely respected in politics after a 25-year stint as a parliamentarian and minister with a reputation for integrity. He is also regarded as a symbol of Italy’s battle against organised crime, having entered politics after his elder brother was murdered by the Sicilian mafia. Mattarella is expected to be able to rely on the backing of most of the 415 PD politicians in the electoral college made up of members of the two houses of parliament – the Senate and the Chamber of Deputies – and 58 representatives of the regions. With dozens of other lawmakers closely aligned to the ruling party, the former academic will need only limited cross-bench support to get over the winning line. But Italian presidential elections are nothing if not unpredictable. In 2013 a revolt within the PD scuppered the favourite Romano Prodi’s chances and blocked a decision, forcing Napolitano to agree to start a second mandate which he always insisted he would not finish. Now 89, the hugely popular figure announced earlier this month that he was too tired to carry on in what is a largely ceremonial role but can become politically significant during times of crisis over the formation of new governments. Renzi’s backing for Mattarella has been interpreted as the end of a temporary alliance the premier forged with disgraced former prime minister Silvio Berlusconi to help drive labour market and electoral reforms through parliament. Mattarella is seen as an “anti-Berlusconi” figure, having severed his ties with the centreright in Italian politics partly because of his distaste for the media tycoon, who still heads the opposition Forza Italia party despite a tax fraud conviction. Berlusconi was reported yesterday to be feeling “betrayed” by Renzi. A popular theory is that the Forza Italia leader was hoping for a sympathetic figure to be installed as president to increase his chances of winning a pardon over his criminal conviction which would allow him to return to parliament. UN court upholds life for two convicted in Srebrenica massacre AFP The Hague T he UN’s Yugoslav war crimes court upheld yesterday life convictions of two Bosnian Serbs for their role in the Srebrenica massacre of almost 8,000 Muslim men and boys in 1995. The Appeal Chamber “affirms the life sentence” against former Bosnian Serb Vujadin Popovic, 57, and Ljubisa Beara, 75, Judge Patrick Robinson said at a hearing at the Hague-based tribunal. Both men are former officers in the Bosnian Serb army blamed for the mid-July 1995 massacre. Popovic, wearing a dark suit and black T-shirt shook his head as the appeals verdict was read out, while Beara, also in a dark suit and white shirt, stood motionless. The two men were sentenced to life on genocide, war crimes and crimes against humanity charges in 2010, together with five co-accused by the International Criminal Tribunal for the former Yugoslavia (ICTY). Four other army officers and a police official found guilty of war crimes were jailed for between five and 35 years. Three of the officers appealed their sentences. The court upheld a 35-year sentence against Bosnian army security chief Drago Nikolic, 57 and a 13 year sentence against brigade commander Vinko Pandurevic, 55. It reduced a 19-year sentence against Bosnian army operations chief Radivoje Miletic, 67, by one year. The Appeals Chamber dismissed, unanimously or by majority, most of the appellants’ other challenges in the case, which is the ICTY’s largest completed case to date. 10 Gulf Times Saturday, January 31, 2015 INDIA Top Congress figure lashes out at Rahul Gandhi Agencies New Delhi B eleaguered Indian opposition leader Rahul Gandhi came under new pressure yesterday when a former minister accused his aides of waging a dirty tricks campaign against her and said his Congress party was undemocratic. Jayanthi Natarajan, environment minister in the last Congress government, said she was resigning from the centre-left party and aimed several parting shots at the 44-year-old Gandhi who oversaw its disastrous showing in last May’s general election. In a letter to party president Sonia Gandhi, Natarajan accused his office of “planting stories” in the media and making her a scapegoat for delays in environmentally sensitive projects. “A hysterical, vicious, false and motivated campaign was orchestrated against me,” Natarajan said at a subsequent press conference in the southern city of Chennai. Natarajan said she had come under pressure from Gandhi while in office to hold back approval for mega projects and was then stunned to hear him publicly criticise the delays in a speech to industrialists. “I was never a bottleneck, nor was I ever responsible for unwarranted delays in major projects, and I can prove this at any time,” said Natarajan, who quit the government months before the elections, which were won by the right-wing Bharatiya Janata Party (BJP). Rahul has been heavily criticised in the media for his lacklustre leadership in the elections, in which Congress recorded its worst ever showing and lost power to new Prime Minister Narendra Modi’s BJP. However few in the party have gone public in criticising either Rahul or his mother Sonia. Natarajan said there was no “inner democracy” in the party and she felt she could no longer function in such a “suffocating atmosphere”. Congress leader and former union minister Veerappa Moily, however, said Sonia and Rahul Gandhi never interfered. “...I have not come across any instance where the Congress president or vice president interfered with administration,” Moily told reporters in Bangalore. Congress leader Digvijaya Singh said in Delhi: “...it is total- ly wrong that either Sonia Gandhi or Rahul Gandhi ever interfered in the functioning of UPA government. Ministers were free to take decisions.” Granddaughter of former Tamil Nadu chief minister M Bhaktavatsalam, Natarajan hails from a family of Congress veterans who were associated with the Indian National Congress since its inception in 1885. Her great-grandfather was a member of India’s Constituent Assembly. A Chennai-based lawyer, Natarajan entered politics as a Youth Congress worker in the 1980s. Becoming a member of the Rajya Sabha for the first time in 1986, she was re-elected to the upper house of parliament in 1992, 1997 and 2008. She was dropped as a Congress spokesperson in January 2014. Natarajan said on becoming the environment minister, Sonia Gandhi had told her to maintain the Congress tradition of protecting the environment as was done by former prime ministers Indira Gandhi and Rajiv Gandhi. Despite withstanding the “anger and wrath of all the colleagues who protested that economic progress was being blocked”, Natarajan said she was told to resign from the cabinet. “After the Congress, I intend to think about my life and future,” she said. “I have absolutely no plan to join any party,” she said, adding that no BJP leader has met her in this connection. She welcomed a government probe into environmental clearances given by her and demanded that the probe should be transparent. “I have to set the record straight to uphold the legacy of my family and my reputation. It has been a bitter experience for me for the past one-and-half years. My own party treated me badly,” she said. Police rescue hundreds of child slaves in Hyderabad The children complained of being forced to work 16 hours a day without breaks, and were threatened with violence and no food if they disobeyed orders AFP New Delhi I ndian police have rescued hundreds of child slaves as young as six during days of raids on workshops in the central city of Hyderabad, a senior officer said yesterday. Police discovered 120 children—some of them sick, underweight and traumatised— during raids on workshops that make bangles and other goods late on Thursday, as part of a city-wide crackdown on child slavery. “They have chronic skin diseases and were underfed. They are in trauma and visibly shaken,” V Satyanarayana, deputy police commissioner for south Hyderabad, said. The children complained of being forced to work 16 hours a day without breaks, and were threatened with violence and no food if they disobeyed orders, the officer said. Many were transported from the impoverished northern state of Bihar last year after their parents sold them to traffickers for 5,000-10,000 rupees ($80-$160), according to rescuers. “They were kept in dingy rooms with no ventilation and Skeletons found at police campus Dozens of human skeletons have been found inside an unused room at a police campus in India, prompting an investigation, officials said yesterday. Sacks containing the human remains and decayed body parts were found on Thursday in a room at the police campus in the city of Unnao in Uttar Pradesh. Media reports said between 60 and 100 skeletons were found in the bags. “We believe this place was called the viscera room where body parts and viscera samples of unclaimed and unidentified bodies were used for postmortems,” Unnao police chief Mahendra Pal Singh told reporters. “The skeletons must be of bodies not disposed of after investigations. A probe and DNA testing has been ordered to get the answers,” he said. Local politician Pankaj Gupta said the skeletons could be of people killed for illegal organ trade or those of political opposition workers. exposure to harmful gases,” said Satyanarayana. “The campaign against bonded labour and trafficking will continue.” Police began a massive clampdown last week against dozens of workshops tucked away in the city’s narrow alleys, after tipoffs from child rights activists and police informers. Some 220 children were rescued last week when police stormed similar workshops in the city’s south, Satyanarayana said. “The rescue of child slaves is the beginning. We have to ensure they get rehabilitated and compensated for the work. Also, the offenders are penalised for the crime” Thirty-one traffickers and agents have been arrested and charged with child slavery and police are making efforts to reunite children with their families, the commissioner added. TV footage taken after the raids showed cramped and dirty workshops with no windows and discarded clothes. Children were seen huddled in a room, looking bewildered and being watched over by police officers. Eleven children are reported missing in India every hour and almost 40% remain untraceable. Many are trapped by gangs and forced into prostitution, child labour and slavery, according to police and activists. Activists, who have criticised police for turning a blind eye to child trafficking, welcomed the police crackdown but cautioned the youngsters could become easy prey for criminals if they are not cared for. “This is an excellent initiative”, Bhuvan Ribhu, an activist and lawyer with Bachpan Bachao Andolan (Save Childhood Movement), said. “The rescue of child slaves is the beginning. We have to ensure they get rehabilitated and compensated for the work. Also, the offenders are penalised for the crime,” he said. India’s mega cities such as Delhi, Kolkata and Mumbai are particular targets for gangs, which entice poor parents from rural areas with the promise of jobs and monthly wages but then sell the children into bonded labour. Most of them end up as construction or domestic workers. Others take up rag picking, agricultural work and in industries such as fireworks, tobacco, bangle making and carpet weaving. Some 4mn Indian children work as domestic helpers, in roadside restaurants and in factories making clothes and other items, according to government figures released last year. Experts say the actual figures are much higher. Indian rights activist Kailash Satyarthi won the Nobel Peace Prize last year for his efforts to halt child labour, including the trafficking of children into slavery. A visitor looks at an exhibit titled “The Threshold into a Dream” by artist T V Santhosh at the India Art Fair in New Delhi on Thursday. Contemporary themes in focus at Delhi’s art fair Reuters New Delhi I ndia’s biggest art fair opened in New Delhi this week with a focus on homegrown artists and exhibits inspired by contemporary themes such as the worst floods in the Kashmir region in more than a century. A smorgasbord of works by 1,100 artists lured art lovers, gallerists and gawkers to a cavernous exhibition space in the capital, cementing the annual fair’s reputation as one of South Asia’s top cultural events. Each year, an estimated 100,000 visitors flock to the four-day fair with entry tickets that cost no more than $6. The city’s glitterati strolled past exhibits by 85 galleries at Thursday’s preview clutching glasses of red wine, with several displays sold before the seventh edition of the fair opened for public viewing yesterday. The show runs until tomorrow. “We’ve had five or six sell- out booths and several galleries have done exceptionally well,” founder Neha Kirpal said. India’s art scene has been expanding for the past few years, with auctioneer Christie’s second Mumbai auction in December generating sales of $12mn. A report by analysts ArtTactic said confidence in the market was at its highest since 2007. For four days each year, New Delhi becomes a centre for the visual arts, with the India Art Fair at the hub of several spinoff events such as museum shows, seminars and glamorous parties. “Beyond the fair itself, the effect it has on the art scene in Delhi at large ... and almost collaterally, the rest of Delhi programmes its art agendas,” said artist Jitish Kallat, who said he would be lucky to attend half the events on the schedule. A life-size wooden replica of a typical Kashmiri house lies on its side at the fair’s entrance, a reminder of the destruction wreaked by floods in the Himalayan state last year. Spelling out the message Kashmiri artist Veer Munshi, who lives in Delhi, took nearly three months to complete the house, and said he would use proceeds from its cost of about 3mn rupees ($48,500) to rehabilitate artists and writers from his native land. Inside the fair, among an array of paintings, sculpture, video installations and photographs is another wooden exhibit - one inspired by a militant assault on Mumbai in 2008. Mumbai artist T V Santhosh’s installation tilts the city’s historic railway station at an angle, with several digital clocks on its walls counting down time in the Mumbai landmark. Elsewhere, metallic beads take the shape of four men hanging on for dear life on a Mumbai train while an army of giant ants, with their bodies sculpted from motorbike parts, bask under the winter sun. Like other years, customs duty and red tape threatens to temper the enthusiasm of Rape victim sues Uber in US court AFP New Delhi A Students of Saint Francis Girls High School form the word “peace” as they participate in a ‘Non-violence and Peace’ rally in Secunderabad yesterday, the 67th anniversary of Mahatma Gandhi’s assassination. Western gallery owners attending the fair. “I was told that a lot of the galleries from the United States stopped (coming) because of all the taxes and all the paperwork involved,” said Clarita Brinkerhoff, whose Florida-based gallery is exhibiting for the first time in India. Brinkerhoff’s metal sculptures of peacocks, India’s national bird, studded with Swarovski crystals found favour with the Delhi crowd, with five of her exhibits sold on the first day. She wants to be back next year, but said she hoped “the process would not be so complicated”. It may be years before New Delhi can hope to match art fairs in Hong Kong or Dubai, but director Kirpal is unperturbed. She describes India as an emerging market in contrast to several art markets that have stagnated. “The good news is that we are at the beginning of our growth curve for the market,” she said. “There’s only one way to go.” woman who alleges an Uber driver raped her in the Indian capital has sued the online taxi service in a US court, accusing it of failing to provide passenger safety. In her lawsuit, the Indian woman accuses Uber of putting profits over safety, calling the US-based company the “modern day equivalent of electronic hitchhiking”. In an e-mail to AFP late Thursday, the American lawyer for the 25-year-old woman, who cannot be named for legal reasons, said Uber was being sued for unspecified damages for “physical and emotional harm”. “Despite its self-proclaimed commitment to safety, opening the Uber app and setting the pick-up location has proven to be the modern day equivalent of electronic hitchhiking,” according to the lawsuit filed in a court in California. “Buyer beware—we all know how those horror movies end,” the lawsuit said, accusing Uber of negligence. The woman’s lawyer, Douglas H Wigdor, had earlier represented a hotel maid who accused former International Monetary Fund chief Dominique StraussKahn of sexual assault in 2012. The San Francisco-based company did not comment on the lawsuit but said “our deepest sympathies remain with the victim of this horrific crime”. A spokesman said the company was also “co-operating fully” with authorities to ensure the person responsible for the crime was brought to justice. Uber was banned from Delhi’s streets in the aftermath of the December 5 attack on the woman, which sparked new safety fears in a city with a high record of sexual violence. The trial of the accused driver, who allegedly attacked the woman as she was on her way home from dinner, is under way. Gulf Times Saturday, January 31, 2015 11 PAKISTAN/AFGHANISTAN TRIAL PENALTY CAMPAIGN WARNING RESTRAINT KP province refers 423 cases to military courts Convict to be executed on non-terror charge Pakistan blocks over 2mn unverified SIM cards EU agency urges ‘extreme caution’ in Pak airspace Musharraf’s request for visit to Saudi rejected The government of Pakistan’s KhyberPakhtunkhwa (KP) province yesterday referred a list of terror suspects to the federal government for trial by newly formed militant courts. The 45-page report contains 423 cases of terror suspects for trial by military courts, which also includes the name of Tehreek-iTaliban Pakistan (TTP) chief Mullah Fazlullah, Dawn reported. At 116, Peshawar has the highest number of cases to be tried by military courts, whereas the remaining 307 cases are from other areas of the province. Most of the terror suspects were charged with attacks on security forces, government buildings, state installations and killing of civilians. Another Pakistani convict will be hanged in Punjab province’s Haripur central jail as the prison authorities received his death warrant yesterday. Shoaib Sarwar, who was awarded the death sentence on murder charges, is likely to be executed within the next three days, The Nation reported. Sarwar will be the first civilian to be hanged for a non-terror related charge since 2008. Pakistan lifted a six-year moratorium on the death penalty last month in the case of convicted terrorists following the Peshawar school attack, which killed over 140. Since then, 20 convicts have been hanged. Nearly 8,000 are on death row. More than 2mn mobile SIM cards have been blocked across Pakistan, a media report said yesterday. The cards have been blocked under a campaign launched by the government for verification of mobile phone subscribers’ details. Earlier this month, the government gave Pakistan Telecommunication Authority (PTA) 91 days to verify 103mn SIM cards issued before August 2013 but not verified through the biometric verification system (BVS). Since the exercise began on January 12 this year, PTA has re-verified 8.72mn subscribers. The three-month period to verify mobile phone connections through the BVS expires April 13. The process of verification was to be completed in a year. The European air safety agency has warned airline operators to show “extreme caution” when flying over Pakistan amid fears of possible terror attacks. The European Aviation Safety Agency (EASA) “recommends all operators to exercise extreme caution” when flying over the country and not to fly below 24,000ft (7,300m), it said on its website dated January 22. The appeal by EASA, which does not refer to any specific threat of attack, applies to flights into, out of or within Pakistan airspace, it said. It said that “national aviation authorities are reporting an increased risk to flight operation safety due to potential terrorist attacks in Pakistan”. The interior ministry turned down yesterday General (retd) Pervez Musharraf’s request to be allowed to travel to Saudi Arabia to offer condolences on the death of King Abdullah, a ministry’s official said. The request was made to the interior ministry on January 23 through his counsel. The ministry responded to the letter yesterday expressing the government’s inability to accede to the request. “Assuming that you represent retired Gen Pervez Musharraf, it is informed that the Supreme Court of Pakistan restrained your client from moving out of Pakistan until its orders were varied or modified,” reads the letter issued by the interior ministry. Govt fails to protect religious freedom, says HRW Bomb attack at Pakistani mosque kills over 60 AFP Shikarpur Internews Islamabad A iolent attacks on members of religious minorities rose significantly in 2014 as Prime Minister Nawaz Sharif’s government failed to ensure protection of religious freedom, says a report of the Human Rights Watch (HRW). Phelim Kine, deputy Asia director at the New York-based HRW, regretted that “the Pakistan government is failing at the most basic duty to protect its citizens and enforce rule of law”. “The Pakistan government did little in 2014 to stop the rising toll of killings and repression by extremist groups that target religious minorities,” he added. HRW representative in Pakistan Saroop Ijaz said that in its 656-page report the HRW had reviewed human rights practices in more than 90 countries. He said the report had been launched globally yesterday and the main event was held in Beirut. The report has termed 2014 “a tumultuous year” for Pakistan in which “sectarian attacks continued with impunity, military operations in North Waziristan displaced more than 1mn people, and massive floods wrought devastation in Sindh and Punjab provinces”. “Violent attacks on religious minorities, fostered in part by the institutionalised discrimination of the blasphemy laws continued,” says the Pakistan chapter of the annual report. “Sectarian violence, particularly attacks against the already beleaguered Shia community, continued to claim a high toll in 2014,” the report says, adding: “The militant group Lashkari-Jhangvi continued attacks on Shia-Hazaras in Balochistan and the government failed to successfully prosecute and imprison suspects, in part due to sympathy for the group within the security forces.” According to the HRW, Karachi remained a “hotbed” of sectarian violence, with at least 750 sectarian targeted killings occurring in the city from September 2013 to September 2014. powerful bomb tore through a busy Shia mosque in southern Pakistan yesterday, killing more than 60 people in the country’s deadliest sectarian attack in nearly two years. The blast hit the mosque in Shikarpur in Sindh province, around 470km (300 miles) north of Karachi, as hundreds of worshippers attended Friday prayers. Sindh health minister Jam Mehtab Daher said that “the death toll from the attack has increased to 61”. “There are 54 dead bodies in Shikarpur hospital. Seven others died in Sukkur and Larkana hospitals,” he said. Shaukat Ali Memon, the medical superintendent of Civil Hospital in Shikarpur, earlier gave a death toll of 48. Hundreds of people rushed to the scene after the blast to try to dig out survivors trapped under the roof of the mosque, which collapsed in the explosion, witness Zahid Noon said. Television footage of the aftermath showed chaotic rescue scenes as people piled the wounded into cars, motorbikes and rickshaws to take them for treatment. “The area is scattered with blood and flesh and it smells of burnt meat, people are screaming at each other... it is chaos,” Noon said. “A huge contingent of police and rangers is present here and ambulances from the nearby towns have started to arrive.” Local resident Mohammad Jehangir said he had “felt the earth move beneath my feet” as he prayed at another mosque around 1.5km away. An official with a national Shia organisation, Rahat Kazmi, said that up to 400 people were worshipping in the mosque when the blast struck. Sainrakhio Mirani, police chief of the region, said officers were still working to determine whether it was a suicide bombing or whether the 6-7kg (13-15 pound) bomb was detonated remotely. V Security officials gathering at the scene following a bomb attack at a Shia mosque in Shikarpur in Sindh province, some 470km north of Karachi, yesterday. It is the bloodiest single sectarian attack in Pakistan since March 2013, when a car bomb in a Shia neighbourhood of Karachi killed 45. A spokesman for the shadowy Jandullah militant group, a splinter faction of the Pakistani Taliban, said they were behind the blast. “We claim responsibility for attack on Shias in Shikarpur very happily,” Ahmed Marwat said. Locals said many people lost relatives in the attack. Mohabbat Ali Bablani, a Shikarpur local, said four of his cousins, aged between 30 and 40, were killed in the blast while his friend had lost five children, all under 13. “My friend Nizamuddin Sheikh has lost his five sons. He had taken them with him to offer prayers and all of them were killed in the attack,” he said. Yesterday’s attack came as Prime Minister Nawaz Sharif visited Karachi, the capital of Sindh province, to discuss the law and order situation in the city. Karachi, Pakistan’s big- Lahore mulls DNA profiling of criminals Internews Lahore T he Lahore police in Pakistan mull starting deoxyribonucleic acid (DNA) profiling of all arrested, jailed and freed criminals of last fiveyear cases after February 15. The DNA profiling will be the first-ever facility utilised by any police department in the country to streamline databank of criminals to prevent and detect crime against person and property cases in a more professional and authentic way. Forensic experts in the police department are currently getting only finger-printing and photographing of criminals to maintain a databank which is not up to the mark and lack centralised system. The capital city police have only three mobile forensic labs which have low-quality investigation kits. Senior Superintendent of Police (investigation) Rana Ayyaz Saleem, who has initiated the project, said yesterday that the initiative was being taken to bring the criminals in a profiling which would restrict repetition of crimes especially rape and crime against property. He said it was generally observed that the criminals of heinous cases like dacoity, robbery, theft, burglary and rape were usually habitual repeaters and police were unable to monitor and bind them after their release. He said as the Punjab Forensic Science Agency had acquired state-of-the-art soft- ware worth $1.5mn for DNA sampling, the arrangements had been finalised to start getting DNA samples from criminals especially categorised in returnees from jails. Saleem said joint teams of police and PFSA would be formed to initiate DNA sampling and profiling of arrested criminals and those who will be sent to jails by courts in six police divisions after Feb 15, adding the DNA coding would be saved in the software to help detect cases. He said the exercise would provide four major benefits as police would receive surety bonds from criminals, who were out of jails, receive surety bonds from their guarantors, identify missing criminals and those who change their places, and identify those who abandon crimes. gest city and economic heart, has wrestled for several years with a bloody wave of criminal, sectarian and political murders. After yesterday’s attack, a group of Shia Muslims came out in streets and blocked main traffic artery in the central Karachi city during evening rush hours. They chanted slogans against the attackers and beat their chests in protest. Anti-Shia attacks have been increasing in recent years in Karachi and also in the southwestern city of Quetta, the north- western area of Parachinar and the far northeastern town of Gilgit. Around 1,000 Shias have been killed in the past two years in Pakistan, with many of the attacks claimed by the hardline Sunni group Lashkar-e-Jhangvi (LeJ). A report by the US Institute of Peace this week warned that sectarian militant groups were growing in strength in rural areas of Sindh, a province which has escaped much of the worst of the violence that has wracked Pakistan over the last decade. Pakistan has stepped up its fight against militants in the past month, following a Taliban massacre at a school in the northwestern city of Peshawar. Heavily armed gunmen went from room to room at the armyrun school gunning down 150 people, most of them children, in an attack that horrified the world. Since then, the government has ended a six-year moratorium on executions in terror-related cases and pledged to crack down on all militant groups. Taliban claim Kabul airport killings AFP Kabul T he Taliban yesterday claimed responsibility for an apparent “insider attack” at Kabul airport in which three American contractors and an Afghan were killed. Details of the Thursday evening shooting are still unclear, with a spokesman for Nato’s Resolute Support mission saying the incident is under investigation. A US defence official in Washington said that the American victims, who were employed under a US Defense Department contract to help train the Afghan air force, died from gunshot wounds. Taliban spokesman Zabihullah Mujahid said a member of the insurgent movement was responsible for the attack. “A brave Afghan mujahid infiltrator working in the military side of Kabul airport opened fire on invading American soldiers, killing three Americans,” he said Afghan security vehicles patrol near a military airport in Kabul yesterday. in a statement sent to media. Western troops and civilians training Afghan security forces have faced lethal assaults from Afghans in uniform who turn their guns on their counterparts. Nato troops have adopted special security measures in recent years to try to counter the threat. The airport in the Afghan capital is heavily guarded, with one section devoted to commercial aircraft and another area set aside for a Nato contingent. Thursday’s attack came after a surge in Taliban violence over the past year. At least nine people were killed earlier Thursday in the country’s east when a suicide bomber struck at a funeral for victims of a roadside bomb attack. Most Nato combat troops pulled out of Afghanistan last year but a small contingent of about 12,000 remain in the country, including roughly 10,600 American forces. The American soldiers, along with other Nato troops and private contractors, are helping the Afghans improve their logistics and build up a fledgling air force. 12 Gulf Times Saturday, January 31, 2015 PHILIPPINES Aquino vows justice for dead commandos AFP Manila P Members of the Philippine National Police (PNP) participate in a “walk for sympathy and justice” for the 44 slain Special Action Force personnel who were killed in Sunday’s clash with rebels, along a main street in Taguig City, south of Manila yesterday. hilippine President Benigno Aquino pledged justice for the families of 44 police commandos killed by rebels during a botched antiterror operation, as he led tributes yesterday — a national day of mourning. The men were killed in confrontations with two rebel groups in the southern Philippines on Sunday while on a mission to catch or kill Malaysian bomb-maker Zulkifli bin Hir alias Marwan, who is accused of involvement in the 2002 Bali bombings in Indonesia in which 202 people died. “I feel your pain,” Aquino told weeping widows, parents and children of the police commandos at an emotional memorial service inside a police camp in suburban Manila. “I pledge to bring justice to all those who were killed,” said the president, sporting the same black armband worn by police attending the ceremony. An awkward silence, broken only by the sound of infants crying, filled the cramped gymnasium as Aquino personally offered his condolences to victims for the first time since the massacre, praying briefly before each white casket. Elisa Esmulla, unemployed and widowed with five young children, said she could not take a combat medal from the president’s hands as she was overcome with grief. “My head was spinning. I was confused. I still can’t believe Govt, rebels hold talks on disarming in shadow of clash AFP Kuala Lumpur P hilippine government and rebel negotiators met in Malaysia yesterday, forging ahead with talks on disarming the guerrillas despite a historic peace deal struck last year being thrown into doubt by a deadly clash. The discussions marked the first formal sit-down between the two sides since a botched Philippine police anti-terror raid in the country’s south last Sunday resulted in a firefight that killed 44 police commandos and shook the peace effort. The Moro Islamic Liberation Front (MILF), which has waged a decades-long bloody insurgency, signed a protocol during an initial encounter Thursday in Kuala Lumpur that paves the way for disarmament. Talks are expected to continue into the weekend at an undisclosed location as procedures are hammered out. But the future of the entire peace effort has been called into doubt by the clash in Mindanao, with public calls growing in the Philippines for retribution against the rebels. The police raid was aimed at capturing or killing a wanted Malaysian terrorism suspect but turned into a debacle when commandos were ambushed by fighters from MILF and the Bangsamoro Islamic Freedom Fighters (BIFF), a MILF splinter group. MILF chief negotiator Mohagher Iqbal said by phone that 11 MILF fighters also were killed, and 15 wounded, some seriously. Last year’s peace deal would create a southern autonomous region for the Philippines’ Muslim minority with locally elected leaders by mid-2016. Representatives of both sides at the Malaysia-hosted talks said they would not allow the bloodshed to derail the painstakingly achieved peace agreement signed last March. “There is no other way to move forward,” Iqbal said. President Benigno Aquino talks to relatives of one of the slain police commandos. Right: Relatives cry at the coffin of one of the 44 police commandos killed in a botched anti-terror operation during a funeral service at the Camp Bagong Diwa, in Manila. what happened to my husband,” Esmulla, 33, said, carrying her one-year-old daughter. Aquino was attacked by many for failing to attend a parade ceremony Thursday that saw uniformed commandos bearing the coffins of their fallen comrades as they arrived home in Manila. He vowed yesterday that one of his government’s top priorities would be to go after Philippine militant Abdul Basit Usman, a suspect in at least nine bombings in the south, who escaped from the weekend fighting. And in his eulogy, Chief Superintendent Noli Talino repeated a Philippine government claim -- not yet independently verified -- that Zulkifli was killed by a small assault force. The 44 men lost their lives in gun battles with large units of V ice President Jejomar Binay yesterday challenged suspended Philippine National Police chief Director General Alan Purisima to speak up about the Maguindanao “misencounter” as he called for justice for the 44 PNP Special Action Force (SAF) commandos killed in action. “Reports show that Gen. Purisima played a major role in the planning and implementation of the SAF operation despite being suspended from duty. He should speak up,” Binay said. At the House of Representatives, lawmakers said Purisima should face investigation and spill the beans on his alleged involvement in the execution of the deadly Mamasapano mission.Lawmakers Sherwin Gatchalian of Valenzuela City (Metro Manila), Carol Jayne Lopez of You Against Corrup- Jejomar Binay: call for justice tion party-list and Rodel Batocabe of Ako Bicol party-list made the call amid reports from police ranks that Purisima hatched the Mamasapano mission to pursue international terrorist Sulkifli bin Hir alias Marwan without proper co-ordination in an attempt to keep his post as PNP chief. “Purisima cannot escape responsibility from the mas- sacre of 44 SAF commandos since he was identified by relieved SAF commander Director Getulio Napenas as the one calling the shots and that the SAF director was directly reporting to him. Even President Aquino admitted that Gen. Purisima was giving him briefings on the top secret SAF operation to neutralise Marwan,” Gatchalian said. way to move forward” except to implement the peace treaty. The other group that attacked the policemen, officials said, is a MILF splinter group called the Bangsamoro Islamic Freedom Fighters (BIFF), which last year pledged allegiance to Islamic State fighters in Iraq and Syria. Eyewitness accounts by at least one police survivor allege that some of the dead policemen had surrendered, only to be executed by the rebels who also desecrated some of the corpses, triggering mounting calls for retribution. Yesterday, the Philippine government and rebel negotiators announced that they had signed a protocol for the disarmament of guerillas. The two sides started threeday talks in Kuala Lumpur from Thursday, their first formal sit- down since the botched raid. The president stressed during the ceremony that what was the worst loss of life suffered by the country’s police or military forces in recent memory would not stop his government from enforcing a peace agreement reached last year with the country’s largest guerrilla force. But analysts said the bloodbath cast doubts over the future of the peace accord aimed at ending the decades-long armed conflict in impoverished Muslim regions of the Philippines. To keep the peace timetable on track, Aquino needs parliament to pass by March a self-rule law for minority Muslims in several southern provinces. However, legislators admitted this week that the incident will likely cause parliament to miss the deadline. China media labels Manila a ‘crying baby’ for opposing island-building AFP Beijing C hina’s official news agency yesterday likened the Philippines to a “crying baby” for seeking international support against island-building in disputed waters by Beijing, denouncing its efforts as “pathetic”. The caustic commentary by the Xinhua news agency came two days after foreign ministers from the Association of Southeast Asian Nations (Asean) voiced concern over Beijing’s land reclamation efforts in the South China Sea. Manila -- which has challenged China’s territorial Binay urges Purisima to reveal details on Maguindanao ‘misencounter’ By Llanesca T Panti & Jefferson Antiporda Manila Times Filipino rebels who surrounded them, according to officials, including the Moro Islamic Liberation Front (MILF), which signed a peace agreement with Manila last year. The MILF maintains that it acted in self-defence and has vowed to pursue the peace process, as it seeks regional self-rule. The rebels were not harbouring Zulkifli or Usman, MILF chief peace negotiator Mohagher Iqbal said, despite military claims in the past they had been offered shelter. “We don’t know anything about their movements... They don’t have contact with the MILF at all,” Iqbal said, adding 11 MILF fighters died as a result of the encounter while 15 were wounded, with some in a “serious condition”. Iqbal said there was “no other At the Senate, the committee on public order and dangerous drugs disclosed plans to invite Purisima to shed light on its inquiry into the bloody clash between members of the PNP-SAF and the Moro Islamic Liberation Front (MILF), if it could get solid proof on reports that he “directed” the operations, according to Sen. Grace Poe, committee chairman. Four separate Senate resolutions have been filed calling for an investigation of the SAF operation that resulted in the death of the 44 police officers. In a statement on the National Day of Mourning for the fallen 44, Binay said there should be an honest and transparent investigation of the Mamasapano clash. The Vice President noted that a number of questions have been left unanswered, including the most important question about who was accountable for the bloodshed. He called on the public to let calm prevail over anger. claims at a UN tribunal — had urged the 10-country grouping to take a firmer stand against Beijing on the issue. “Only one month after an arbitration farce, the Philippines is putting up another pathetic show in an attempt to lobby international sympathy and support in its territorial spat with China,” Xinhua wrote. “Manila should be fully aware that acting like a crying baby and begging for compassion from the international community would never help justify its claims in the South China Sea dispute,” it said. The dispute “should and could be properly handled only by the parties directly concerned”, it added. China says it controls almost all of the South China Sea, a claim which conflicts with those of Asean members Brunei, Malaysia, the Philippines and Vietnam as well as non-member Taiwan. Manila accused Beijing last year of reclamation work around isolated reefs in the Spratly islands, which could hold fortified positions or even airstrips. Beijing has repeatedly rejected Philippine protests, saying that the projects were being conducted in Chinese sovereign territory. On Wednesday, following a two-day ministers’ meeting in Malaysia, Asean foreign ministers expressed concern at China’s island-building efforts -- although their statement mentioned no specific countries, saying instead that they “shared the concern raised by some foreign ministers on land reclamation in the South China Sea”. The statement came after Philippine foreign minister Albert del Rosario urged the international community to “say to China that what it is doing is wrong — that it must stop its reclamation activities at once”. But Xinhua argued that such efforts represented a “selfish, futile” attempt by Manila to “poison” China-Asean ties. “To drive a wedge between Asean and China — its nearest neighbour and partner — at such a critical time will be extremely unwise and selfish,” the news agency wrote. Mongolia jails American, two Filipinos in tax evasion case Reuters Beijing R esource-rich Mongolia yesterday jailed an American and two Filipinos for more than five years after finding them guilty of tax evasion, ending a three-year case that deterred investors. Perceived resource nationalism in Mongolia, fed by suspicion at foreigners taking control of some of the world’s largest coal and copper deposits, has led to an annual decline of 71% in foreign investment in the year to November 2014. Prosecutors said a panel of judges levied a fine of $35bn tugrik ($18mn) on Toronto-listed SouthGobi Resources Ltd, besides the prison terms for the men, former employees of the firm. The “verdict was guilty,” the general prosecutor’s office said in a brief statement. The three men were US citizen Justin Kapla, and Philippine citizens Hilarion Cajucom Jr and Cristobal David. US Ambassador Piper Campbell and some embassy staff attended the trial, where they noted “several interpretation problems”, the US embassy in Mongolia said in a statement. “Because of these problems, the defendants stated during the trial that they could not understand the interpretation, nor could they express themselves clearly,” the embassy added. The Philippines embassy could not be reached for immediate comment. Earlier, judges had twice returned the case to prosecutors, citing insufficient evidence. Travel bans during the investigations have kept the convicted men in Mongolia since May 2012. Kapla registered a case with the UN Human Rights Committee after being unable to leave for more than two years. The case began after Mongolian authorities raided the offices of SouthGobi Resources’ mining unit, SouthGobi Sands, in May 2012. SouthGobi mines the Ovoot Tolgoi coal deposit in the Gobi desert, 40 km from the Chinese border. The case began after Mongolian authorities raided the offices of SouthGobi Resources’ mining unit, SouthGobi Sands, in May 2012. SouthGobi mines the Ovoot Tolgoi coal deposit in the Gobi desert, 40 km from the Chinese border The raid followed SouthGobi Resources’ acceptance of an offer from Aluminum Corp of China Ltd to buy a majority stake. The deal sparked controversy over the prospect of a Chinese state-owned company taking control of the mine. Mongolia adopted new laws that year to curb foreign investment, effectively blocking the deal. Mongolia has historically been hesitant to hand strategic assets to China after centuries of feuding between the neighbours. Gulf Times Saturday, January 31, 2015 13 SRI LANKA/BANGLADESH Bodies found after migrant boat sinks AFP Dhaka Govt hikes taxes to raise revenue AFP Colombo S ri Lanka’s new government has announced hefty taxes on top companies in a bid to raise revenue, accusing the previous regime of fudging the figures and leaving the economy in a “sad state”. Finance Minister Ravi Karunanayake also said prices of essential food items would be slashed to cut the cost of living for average Sri Lankans, as he unveiled his government’s supplementary budget. Karunanayake said public debt had been hidden and growth artificially inflated by the regime of Mahinda Rajapakse, who was ousted after 10 years in elections this month on claims of corruption and cronyism. “The officials and economic experts have looked into the figures and now the economics of deceit and falsehood had surfaced,” Karunanayake told parliament on Thursday. “The bad news is that economy is in a sad state, and the good news it is not beyond resurrection and is in safe and sound hands,” he said, pledging a transparent government. Karunanayake announced a “super” tax of 25% on companies which earn annual net profit of more than Rs2bn ($15.38mn), and a Rs1bn ($7.56mn) tax on Sri Lanka’s handful of local casinos. He revealed tax cuts on a dozen essential food items including milk powder and bread, and granted a Rs10,000 ($76) salary increase to more than 1.6mn public servants. A “mansion” tax of Rs1mn ($7,700) will also be imposed annually on owners of large homes, the minister said. The new government last week reduced fuel by 20% and pledged further reductions, in populist measures ahead of parliamentary polls. Sri Lanka’s new President Maithripala Sirisena has pledged to dissolve parliament in April, two years ahead of time, and call an election aimed at strengthening his hold on power. Karunanayake said debt was 88.9% of GDP, sharply higher than the Sri Lankan central bank’s figure of 74.5% given before the change of government. Sri Lanka reported more than 8% in the first two years after the end of a decades-long separatist war in 2009, and has recorded steady growth since then. AFP Colombo S R escuers pulled seven bodies yesterday from a fishing boat that sank off the Bangladesh coast carrying migrants to Malaysia, as a search continued for a dozen still missing, an official said. Emergency workers have rescued 43 Bangladeshis in the Bay of Bengal since the trawler capsized in strong currents some 2.5km (1.5 miles) offshore on Thursday, officials have said. “We recovered seven bodies from the lower deck of the boat on Friday morning,” coastguard captain Shahidul Islam said. The bodies were found after the coastguard towed the boat to shore, Islam said. Although dozens were initially feared missing, Islam said yesterday officials now believe the figure is lower after interviewing more of the survivors. “We don’t know how many people are still missing because the survivors gave us different estimates as to how many people were aboard the boat when it capsized,” he said. “But it was a small boat and we think the number of missing Lanka names Tamil as new chief justice The Bangladesh coastguard searching for survivors of the sunken trawler after it sank carrying more than 100 passengers travelling to Malaysia, at the Khudiyar Tek Point in the Kutubdiya Channel, off Bangladesh, yesterday. won’t be more than a dozen.” The coastguard, along with the Bangladesh navy, was scouring the sea, but with more than 24 hours elapsing since the disaster, hopes were fading of finding them alive, he said. All of the passengers were Bangladeshis who were heading to Malaysia by sea illegally, police have said. The boat hit strong currents in a channel shortly after leaving a coastal town near the southern port city of Chittagong. Thousands of impoverished Bangladeshis and ethnic Rohingya refugees from Myanmar attempt the perilous journey to Malaysia every year. Ferry and other boating accidents are common in Bangla- desh, home to thousands of small and medium-sized boats, 95% of which officials say do not meet minimum safety regulations. Rights groups say thousands have perished attempting the 3,200km (2,000-mile) journey to Malaysia, with many falling into the hands of people traffickers. Some 100 Rohingya refugees lost their lives in two boat- ing tragedies off the Bangladesh coast in October and November 2012. Bangladesh’s coastguard and border forces have launched crackdowns on economic migrants, while also arresting a number of human traffickers and confiscating their ships. But there has been no noticeable impact. Australia’s gaming mogul quits Lankan project AFP Colombo A ustralian gaming mogul James Packer’s Crown Group said yesterday it has scrapped plans for a $350mn resort in Sri Lanka after the new government banned casinos and axed tax breaks for the project. Packer had been planning the 450-room luxury resort after the previous regime offered the tax concessions in efforts to turn the Sri Lankan capital Colombo into a regional gaming hub. But President Maithripala Sirisena’s government on Thursday cancelled the concessions and said it would not allow casinos in the resort after opposition from Sri Lanka’s influential Buddhist monks. “Crown Resorts respects the (government’s) decision and on that basis the project would not be going ahead,” a Crown spokesperson said in an e-mail. The company had not begun construction although regulatory approvals were granted in December 2013. President Sirisena, who swept to victory in January 8 Bangladesh opposition calls strike By Mizan Rahman Dhaka T he Bangladesh National Party (BNP)-led alliance yesterday called a 72-hour nationwide general strike from 6am tomorrow as part of its transport blockade movement. In a statement, BNP joint secretary general Ruhul Kabir Rizvi, announced the shutdown programme, which will end on Wednesday morning. He said the strike has been called to register protest against the ruling party leaders’ threat to ‘blow out’ the BNP chairperson’s Gulshan office and arrest her, the prime minister’s instruction to police to suppress the movement by any means. The shutdown will also be observed in addition to the ongoing blockade protesting the recent killing of 21 opposition men by law enforcers, arrest of over 15,000 leaders of alliance partners, and filing of around 150,000 ‘false’ cases against them. Rizvi cited harassment of opposition men by joint forces’ drives and shifting the blame on the opposition after carrying out acts of sabotage by throwing petrol bombs at public transports by government agents as reason for toughening the opposition stance. Earlier in the day, the party turned down Education Minister Nurul Islam Nahid’s call to lift the blockade programme for smooth holding of the Secondary Scholl Certificate (SSC) exams, saying the ‘peaceful’ action programme will continue. BNP chairperson Khaleda Zia last week renewed her appeal to her arch political rival to hold talks to finds ways to hold an early credible parliamentary poll but the prime minister outright rejected her call, saying the opposition is an anti-liberation force and it must be eliminated by all means. Almost all political parties except the ruling Awami League and foreign countries have also called for a dialogue to settle the poll issue. Even some of Hasina’s allies also pleaded for holding talks with the opposition to end the ongoing political turmoil in Bangladesh. elections backed by the country’s main party of monks, pledged to end the tax breaks during his campaign. The previous government led by Mahinda Rajapakse had introduced concessions, including a five percent rate for gambling operators, in a bid to boost tourism numbers. Another casino resort approved at the same time, a $650mn development by local conglomerate John Keells Holdings, is still going ahead — but without the casino. John Keells said in a stock exchange filing yesterday that the resort project was still vi- able without the casino. The future of the third project, a $300mn resort by local businessman Dhammika Perera, who has sought overseas funding, was unclear. Several local, low-key casinos have been in operation for decades, exploiting loopholes in a law that bans such gaming operations. Finance Minister Ravi Karunanayake said on Thursday he would give those existing casinos, thought to number about five, a deadline of mid-April to pay a flat fee of Rs1bn ($7.6mn) to remain in business. ri Lanka’s President Maithripala Sirisena yesterday appointed a Tamil judge as the country’s chief justice, the first member of the minority community to hold the post in more than two decades. Kanagasabapathy Sripavan, 62, was sworn in yesterday, ending a crisis in the Supreme Court triggered by the sacking of former chief justice Shirani Bandaranayake two years ago. Sripavan becomes the first Tamil to occupy the top judicial position in 24 years as Sri Lanka’s new leaders seek to mend ties with the country’s largest ethnic minority after a bloody 37-year war. “Justice Sripavan was sworn in before President Sirisena,” the presidential secretariat said in a statement. The appointment comes two days after Sirisena declared the controversial im- peachment of Bandaranayake by the previous regime illegal, fulfilling one of the pledges he made before his surprise win of this month’s election. Bandaranayake stepped down on Thursday, a day after being formally restored to the post, which she lost in January 2013 after angering former president Mahinda Rajapakse with her judgements against his regime. Bandaranayake’s sacking was widely criticised, with the UN Human Rights Council calling it an assault on judicial independence. The Supreme Court had been accused of political bias since she was replaced by Mohan Peiris. The government of Sirisena, a member of the majority Sinhalese community, has vowed reconciliation with Tamils six years after the end of separatist war that claimed at least 100,000 lives between 1972 and 2009. The last Tamil chief justice was Herbert Thambiah, who left the position in 1991. Govt ‘keen to co-operate with UN investigation’ Sri Lanka’s government has received encouragement from the UN to co-operate in an ongoing investigation into its human rights record, the foreign ministry said yesterday. President Maithripala Sirisena’s senior adviser on foreign affairs, Jayantha Dhanapala met UN High Commissioner for Human Rights Zeid Ra’ad Al Hussein in Geneva and briefed him on the new government’s policies, Xinhua reported. The former diplomat, who has termed his visit an “exploratory visit”, briefed top UN officials on the policies of the newly elected President Sirisena and his government. The meeting in Geneva came as Zeid Ra’ad Al Hussein prepares to submit in March a report that includes investigations into alleged war crimes to the UN Human Rights Council. Sri Lanka’s previous government under former president Mahinda Rajapakse had steadfastly refused to cooperate in what it termed as a “flawed” investigation. Rajapakse ended a threedecade war with the Liberation Tigers of Tamil Eelam (LTTE) in 2009 but his government was dogged by allegations of civilian deaths during the last phase of the war and other rights abuses. Rajapakse was defeated in the January 8 presidential election by his former cabinet member Sirisena. The UN is trying to verify how Sri Lanka will co-operate on the investigation. The new government has said it will launch a domestic probe into the war while the UN said the investigation should meet international standards and it will monitor the latest developments. “We’re trying to figure out what it means in terms of cooperation with the UN human rights investigation. And we hope that there is positive movement in the cooperation between Sri Lanka and the UN system on the investigation of what happened,” UN spokesman Stephane Dujarric said. In absence funeral prayers The Awami League-led 14-party alliance holds a ‘gayebana namaz-e-janaza’ or ‘in absence funeral prayers’ for those who died in violence during the Bangladesh Nationalist Party (BNP) led 20-party alliance blockade and strike this year, in Dhaka yesterday. At least 33 people were killed and scores have been injured in the recent political unrest. Mostly civilians have died in the petrol bomb attacks. President Hamid decries transport blockade IANS Dhaka B angladesh President Abdul Hamid has called on law enforcers to take stern action against troublemak- ers during the BNP-sponsored countrywide blockade. The president labelled the pro-blockade elements as “enemies of democracy”, bdnews24. com reported. Prime Minister Sheikh Hasina on Wednesday ordered the police to stop violence “at any cost” and “without hesitation”. Speaking at the Bangabhaban, where the president’s office located, the president in an event on Thursday marking Police Week, said: “I am deeply hurt by the recent killings of inno- cent people by petrol bombs and arson.” “Those involved in such anarchy are enemies of democracy, humanity and civilisation. I call upon the country’s law enforcing agencies to take stern measures against them.” 14 Gulf Times Saturday, January 31, 2015 COMMENT Chairman: Abdullah bin Khalifa al-Attiyah Editor-in-Chief : Darwish S Ahmed Production Editor: C P Ravindran P.O.Box 2888 Doha, Qatar [email protected] Telephone 44350478 (news), 44466404 (sport), 44466636 (home delivery) Fax 44350474 GULF TIMES Old names set to dominate 2016 US presidential talk The US is a large country with more than 300mn people. There would seem to be an abundant supply of ambitious, fresh hopefuls for the White House. But right now, the 2016 race looks like a tired re-run despite Mitt Romney opting out of it. Romney, the 2012 Republican candidate for president, said yesterday that he would not make another bid for the White House. “After putting considerable thought into making another run for president, I’ve decided it is best to give other leaders in the party the opportunity to become our next nominee,” Romney told his financial supporters and party leaders in a conference call. But on the Democratic side, expectation is still growing that Hillary Clinton - the former first lady, senator and secretary of state - will enter the race after losing the party’s nomination in 2008 to President Barack Obama. Given her towering stature, that possibility has sucked most of the air out of the room for other potential Democratic candidates. Yet another familiar surname - former Florida governor Jeb Bush - announced late last year that he was “actively” exploring a presidential run, a move that could propel a third member of the Bush political dynasty into the White House. Then there are Rand Paul, Mike Huckabee and Rick Santorum who could make bids, with an appeal to the party’s archconservative faction. “Overall, 2016 is shaping up to be the year of the retreads: the reduce, reuse and recycle election,” Washington Post columnist Dana Milbank wrote the other day. If Hillary Clinton or Jeb Bush wins the White House in 2016 and serves a second term, it would mean the two families would have occupied the White House for 28 of the 36 years since 1988, Milbank calculated. It does seem puzzling for a country founded on rebellion against monarchic rule. Even Barbara Bush, wife and mother of two ex presidents, considers the prospect absurd. “If we can’t find more than two, three families to run for higher office, that’s silly,” she said last year. “I refuse to accept that this great country isn’t raising other wonderful people.” Maybe Chris Christie, governor of New Jersey who has been travelling the country and is seen as a Republican moderate? Or Senators Marco Rubio of Florida or Ted Cruz of Texas, darlings of the extreme conservative wing? Those would be fresh faces for Republicans. But would they stand a chance against Hillary Clinton? In any case, what the Republicans have going for them is that they have a large field of candidates - one that is more qualified than during the last selection process in 2012. On the Democratic side, it’s an open question who will dare take on the role of challenging Hillary Clinton in the party primary elections - if she chooses to run. The Clinton family, after all, is one of the most powerful political families in the country. A strategy towards stagnant wages and consumption Given that wealthy people have a higher propensity to save, increased inequality tends to produce sluggish demand growth By Adair Turner London A s 2015 begins, the reality of deficient global demand and deflationary risks in the world’s major economies is starkly apparent. In the eurozone, GDP growth is slowing, and inflation has turned negative. Japan’s progress toward its 2% inflation target has stalled. Even economies experiencing more robust economic growth will miss their targets: inflation in the United States will not reach 1.5% this year, and China’s rate reached a five-year low of 1.4% last November. In the advanced economies, low inflation reflects not just the temporary impact of falling commodity prices, but also longer-term wage stagnation. In the US, the United Kingdom, Japan, and several eurozone countries, median real (inflation-adjusted) wages remain below their 2007 levels. Indeed, in the US, real wages for the bottom quartile have not risen in three decades. And, though the US created 295,000 new jobs last December, actual cash wages fell. The developing world is not doing much better. As the International Labour Organisation’s latest Global Wage Report shows, wage gains are lagging far behind productivity growth. Because real income growth is vital to boost consumption and prices, central bankers and politicians are now in the novel business of encouraging wage increases. Last July, Bundesbank president Jens Weidmann welcomed the fact that some German companies had raised wages above inflation. Japanese Prime Minister Shinzo Abe has gone a step further, repeatedly urging companies to increase wages – and encouraging them to do so by reducing corporate tax. So far, however, jawboning has had little effect. This failure would not have surprised the monetarist economists who observed the high inflation of the 1970s. At the time, many policymakers blamed rapid price increases on “cost push” factors, such as pressure from trade unions for excessive wage hikes. Finance ministers and central banks frequently urged wage moderation, with many countries even introducing formal policies governing wages and prices. Just as la bour markets can be too rigid, they can be too flexible But these policies proved largely ineffective. Instead, it seemed increasingly clear that, as Milton Friedman put it, “inflation is always and everywhere a monetary phenomenon”. If nominal demand grows faster than real potential growth, inflation is inevitable; and nominal demand growth can be constrained only through a mix of fiscal and monetary policy. Indeed, inflation was finally crushed in the early 1980s, when central banks raised interest rates to whatever level was required to constrain nominal demand, even if it led to high transitional unemployment. But, though central banks claimed credit for the “Great Moderation” of global inflation that followed, structural factors (which determine the intensity of cost-push effects) also played a crucial role. For starters, the entry of China’s massive labour force into the global market economy changed the power balance between capital and labor in the advanced economies. Trade unions’ membership and influence declined sharply, owing to increased global competition and, in some countries, deliberate legal reforms. Minimum wages, particularly in the US, were allowed to fall relative to median incomes. More recently, technological advances have become an increasingly important driver of structural transformation, with information technology and job automation reducing wage rates for low-skill jobs and further eroding the political and market power of organized labor. Today’s ultra-flexible labor markets, characterised by part-time, temporary, and zero-hours contracts, are very different from those that generated cost-push inflation in the 1960s and 1970s. The result in many countries has been stagnant real wages, increased inequality, and a potential structural bias toward deficient nominal demand. Given that wealthy people have a higher propensity to save, increased inequality tends to produce sluggish demand growth – unless, that is, the savings of the wealthy are lent to the poor. As a result, while central bankers before the 2008 financial crisis viewed themselves as heroes in a battle against inflation, they increasingly found themselves offsetting structural deflationary pressures by setting interest rates low enough to stimulate credit booms. This led to excessive debt creation, financial crisis and now a chronic aggregate-demand shortfall, with households, companies, and governments all seeking to reduce their debt. But, though structural factors and debt overhangs underpin today’s inadequate demand, a purely macroeconomic response might still solve the problem. Just as determined monetary restraint 30 years ago ultimately overwhelmed cost-push pressures, an equally determined policy in the other direction could, in theory, boost nominal demand growth today. The best way to achieve that is not through the current mix of ultra-low interest rates and quantitative easing. After all, though this approach would eventually stimulate demand, it would do so by driving up asset prices – thereby exacerbating wealth inequality – and by re-stimulating the privatecredit growth that fueled the financial crisis. But policymakers always have another option for creating nominal demand: printing money to finance their fiscal deficits. The permanent availability of this approach – what Friedman called “helicopter” money – makes deficient nominal demand one of the very few economic problems for which there is always an answer. Nonetheless, such a purely macroeconomic approach to the battle against deflation would almost certainly not be optimal. A better strategy would also entail policies that address the structural drivers of stagnant wages and consumption. One of those drivers is excessive labour-market flexibility. Though the easing of rules for hiring and firing workers has probably helped to boost employment in some countries, such as the UK, it may also be depressing real wages. Just as labour markets can be too rigid, they can be too flexible. Raising minimum wages could help limit the erosion of real earnings in the bottom quartile. And tax and socialwelfare systems can be used to channel income toward those most likely to spend it. Because deflation, like inflation, is ultimately a monetary phenomenon, fiscal and monetary weapons are the most critical means to combating it. But the potential importance of structural policies should not be ignored. Weidmann and Abe are right: some cost-push pressure would be useful. But deliberate policies will be needed to stimulate it. - Project Syndicate zAidar Turner is a senior fellow at the Institute for New Economic Thinking and at the Center for Financial Studies in Frankfurt. “Overall, 2016 is shaping up to be the year of the retreads” To Advertise [email protected] Display Telephone 44466621 Fax 44418811 Classified Telephone 44466609 Fax 44418811 Subscription [email protected] 2014 Gulf Times. All rights reserved New Greek Foreign Minister Nikos Kotzias, left, talking to German Foreign Minister Frank-Walter Steinmeier at the start of an extraordinary meeting of the European Foreign Affairs Council, in Brussels, Belgium, on Thursday. Showdowns over sanctions and bailouts By Alexandra Mayer-Hohdahl Brussels/DPA N ikos Kotzias had had enough. It was his first visit to Brussels as Greece’s new foreign minister and he was being relentlessly peppered with questions about whether his government was pro-Russian and would break ranks with the European Union on sanctions against Moscow. “My duty is to make negotiations and not explain to journalists if I’m a good or a bad boy,” he snapped at a press conference on Thursday evening. “We have the same rights (as everyone else), even if we are in a deep financial crisis.” After the euphoria of a resounding election victory, Greece’s new far-left Syriza government this week had its first taste of the fights it will need to lead with the EU - a bloc that twice helped the country avoid bankruptcy. Syriza leader Alexis Tsipras campaigned on promises to renegotiate the bailouts granted to Greece by its European neighbours and the International Monetary Fund, which came with painful requirements for budget cuts and austerity measures. In his first cabinet meeting, Tsipras announced that he would turn his back on several bailout-associated measures, including by blocking plans to privatise two public companies and by increasing the minimum wage. “All of these actions are contrary to key structural reforms demanded by the troika (of European and IMF creditors) to improve competitiveness and streamline the functioning of the Greek economy,” analysts at Barclays wrote in a research note released yesterday. “Syriza must realise that it is now the Greek government, not a party running an election campaign” “Cancelling them would very likely be a clear provocation to Greece’s creditors and significantly reduce the possibility of a positive outcome of the upcoming negotiations with the troika,” they added. Senior European officials have warned Tsipras to stick by commitments that past governments made, with several arguing that the bailouts were ultimately granted by European taxpayers - many of which faced a challenging economic situation in their own countries. Finance Minister Yanis Varoufakis nevertheless declared yesterday that Greece refuses to work with the troika, which comprises the European Commission, the European Central Bank and the International Monetary Fund. A senior official at the Greek finance ministry had earlier told DPA that Greece is ready to go to the European Court of Justice if its loans are cut off. The statements came despite a warning by European Parliament president Martin Schulz - the first EU official to visit Athens after the elections - that “pragmatic solutions which can work for both sides” were needed. “Syriza must realise that it is now the Greek government, not a party running an election campaign,” Schulz told the Kathimerini newspaper. “Everyone must realise that grandstanding and headline-grabbing comments may not be the best tool for the coming weeks.” The clash over the bailout follows tensions between Brussels and Athens over EU sanctions against Russia. The new government had publicly objected on Tuesday to a statement by EU leaders raising the prospect of new sanctions against Moscow. The move fuelled speculation that Athens was ready to veto further measures against Russia. Several Greek ministers later clarified that the problem had not been the sanctions per se, but the way the statement was approved. The damage was already done, however. “Through the new stance of the Greek government, the debate today has not become easier,” German Foreign Minister Frank-Walter Steinmeier said on Thursday ahead of emergency talks with his EU counterparts - including Kotzias - on the crisis in Ukraine. “It is difficult to expect a revised common approach to your country, and then take a different policy stance to the rest as your first act in government,” Schulz told Kathimerini. Kotzias said he was happy with the outcome of the ministers’ meeting, pointing out that no new sanctions had immediately been issued, as Greece had wished. There will now be a “last chance” for a dialogue between the EU and Moscow, the minister said. Greece will have to take a clear position on EU sanctions sooner than later, however. The ministers will reconvene on February 9 to decide on new travel bans and asset freezes over the crisis in Ukraine, and the issue of further economic sanctions against Russia could come up at an EU summit on February 12. Gulf Times Saturday, January 31, 2015 15 COMMENT The new healthcare continuum Healthcare needs to become connected By Frans van Houten Davos T he healthcare industry has changed dramatically over the past few decades. Research and development have given us astonishing new treatments, powerful diagnostics and a rapidly growing wealth of knowledge. Medical specialisations and providers have proliferated. Governments and insurers have become powerful players. And the patient has become a vocal and proactive consumer, ready to search for better options, even if that means going abroad. But, even as health care has become more effective, it has also become more complex and costly. Growing and ageing populations are putting increased pressure on health-care systems that are already buckling under the burden of chronic diseases like cancer and diabetes. The Institute of Medicine estimates that in the US alone, some $750bn a year – about 30% of total healthcare spending – is “wasted on unnecessary services, excessive administrative costs, fraud, and other problems.” If we are to ensure that health care remains affordable and widely available for future generations, we need to rethink radically how we provide and manage it. Crucially, healthcare needs to become connected. It should become effortless for medical professionals to share relevant data with colleagues around the world. Medical devices and systems in hospitals should be able to combine multiple sources of information. A new generation of consumer provide access to life-saving treatment to more people, particularly in developing countries and rural areas. In Indonesia, which has one of the world’s highest infant mortality rates, midwives in the rural area of Medan collect medical data from pregnant women using a mobile app. The data are analysed by obstetricians and gynaecologists elsewhere, allowing women at high risk of illness to be identified and treated early. In Uganda, midwives in village health centres send compressed ultrasound scans to remote specialists, nearly doubling the number of newborns that can be delivered by a skilled health worker. More broadly, connected health technology will cause professional health care and consumer markets to converge. This will create a continuum that starts with a focus on healthy living and prevention, empowers consumers to take control of their own health, and enables countries to improve their citizens’ overall wellbeing. The continuum will then move on to definitive diagnostics and minimally invasive treatments, optimised for quality and cost, and, finally, to recovery and home care, shifting medical care as soon as possible to more comfortable and cost-effective non-hospital settings. Governments, insurers, medical professionals, patients and caregivers need to work together to ensure that the transition to this health continuum is well managed, so that access can be expanded, outcomes can be improved, and productivity can be enhanced. Together, we have the opportunity to improve the lives ofbns of people, create healthier societies, save costs and boost economic growth. - Project Syndicate technology, such as wearable health sensors, could automatically alert doctors to potential medical problems before they become acute episodes. Though such innovations must confront challenges like system interoperability and the need to protect patients’ privacy, the Internet’s integration into the travel and banking industries shows what is possible. Indeed, connected healthcare is already becoming a reality. Philips, for example, has developed a technology that allows doctors to share medical data from a prostate cancer biopsy with colleagues around the world. In the past, the biopsy could be shared only physically, which made diagnosing the exact type of prostate cancer difficult. As a result, surgeons and patients may have opted for invasive surgery just to be safe. Now, teams of doctors worldwide have an additional tool, enabling them to work together toward more accurate diagnoses and enhanced treatment plans for individual patients. The entire patient experience will be transformed, with better prevention, quicker diagnoses, shorter hospital stays, and longer independent living becoming the norm. If patients return to the hospital, they will bring useful data, captured by wearable devices, about the evolution of their vital signs. They can continue to track themselves as their treatments progress, and their data can be integrated with medical records to provide a long-term view of their health, rather than an episodic snapshot of the day they visit a doctor. With access to professional coaching and support around the clock, patients will feel more empowered to manage their own physical wellbeing. Connected healthcare can also zFrans van Houten is chief executive officer of Royal Philips. Weather report LEGAL HELPLINE Three-day forecast Employee rights and contracts Any condition contrary to Labour Law’s provisions shall be null and void unless it is more beneficial to the employee By Nizar Kochery Doha QUESTION: In my employment contract, the annual leave is given as 45 days and the notice for termination is three months. But the company has been extending me only 30 days of leave. I have just been terminated but the company gave me only 30 days of notice. referring to the provision in the Labour Law. Am I not eligible for three months’ notice as per the contract? Also, was I not entitled for 45 days of leave a year during my service? AQ, Doha ANSWER: As per law, any condition contrary to the provisions of the Labour Law, even if was made prior to its commencement, shall be null and void unless it is more beneficial to the employee. The employee’s rights given under the Labour Law is part of public policy. Matters of public policy are not matters which can be waived or conciliated. Therefore a labour contract may grant an employee more rights than the ones provided by law; however, an employee may not waive his rights under the law as this waiver would be contrary to public policy. Accordingly, the employee will be entitled for three months payment in lieu of notice based on a clause in the employee’s contract which granted the employee more benefits than the Labour Law. On the other hand, an employee’s agreement to clauses in a labour contract which lessens his rights as compared to the basic rights in the Labour Law is seen as waiver and is invalid. Supervisory council Q: We are partners in a company registered with the Commerce Ministry for educational activities. The number of partners exceeds 25. Managers are appointed in the CR. All members interfere in the day-today activities and create a lot of unpleasant situation. How do we tackle this legally? DR, Doha A: As per Commercial Company Law of Qatar, a partner who is not a manager in a company that does not have a supervisory council may offer advice to the managers, demand to review the activities of the company at its place of business and inspect its books and documents. Any condition providing otherwise shall be void. However, Article 244 provides constitution of Supervisory council when number of partners exceeds 20. The company’s memorandum and Articles of Association shall appoint of a supervisory council to be comprised of at least three partners for a specific period. The general assembly may reappoint the council after the expiry of such period or appoint other partners or dismiss them. The supervisory council shall have the right to inspect the company books and documents etc. and may ask the managers to present a report on their management. Supervisory council members shall not be responsible for the activities of the mangers unless they are aware of their mistakes and fail to report these in their report submitted to the partners General Assembly. Restraint of profession Q: I have been working with a company under a contract for three years’ duration. But the company is asking me to sign a new contract for another term, with a reduction in my salary. When a contract is renewed how is the period of service calculated? Will that be a new term of contract? The company is ready to offer release for sponsorship change but they ask me to sign not to take up a design job. I could have any other job. But I am a graphic designer by profession. PD, Doha A: As per Law, when a contract of service is renewed, the period of renewal shall be considered as extension of the previous period. The service of the worker shall be considered as started from the date of first engagement for calculation of benefits. Agreement in restraint of profession is void. According to Article 43 of the Labour Laws, if the nature of the work allows the worker to know the clients of the employer or the secrets of the business of the establishment, the employer may stipulate that the worker shall not compete with him or participate in any undertaking competing with him after expiry of the contract. Such stipulation shall be valid only if it is restricted as to its duration and place and to type of the work to the extent necessary for the protection of the legitimate interests of the employer. The period of such undertaking shall not exceed two years. TODAY High: 29 C Low: 18 C Hazy to Misty, may be foggy at places at first becomes moderate temperature daytime with some clouds relatively cold by night Invocation of prescription SUNDAY High: 29 C Low : 17 C P Cloudy Q: A case was filed against us in Qatar. The case was time barred and we didn’t attend the case. Now the judgment is issued and what are the chances to get the case dismissed? Will it be possible to defend in appeal on the lapse of time? Earlier the same case was filed in the UAE and the court dismissed the case because of the issue of Qatar business matter. SM, Doha A: According to Article 417 of the civil laws, the court of its own initiative cannot invoke prescription. Prescription must be invoked by the debtor, or by his creditors, or by any interested party, even if the debtor has failed to do so. However, the prescription may be invoked at any stage of the proceedings, even before the Court of Appeal. Prescription is interrupted by legal proceedings even if instituted in a court without jurisdiction, by a summons or by an attachment, by the application of a creditor for the admission of his claim in a bankruptcy or in a distribution, or by any act of a creditor to claim his right in the course of legal proceedings. MONDAY High: 23 C Low : 16 C Clear Fishermen’s forecast OFFSHORE DOHA Wind: SE-SW 05-15/22 KT Waves: 2-45 & 5/7 Feet INSHORE DOHA Wind: SE-SW 03-13-20 KT Waves: 1-3/4 Feet Around the region Abu Dhabi Baghdad Dubai Kuwait City Manama Muscat Riyadh Tehran Weather today Clear P Cloudy Clear Clear Clear Clear Clear C Showers Max/min 27/16 22/07 31/17 29/14 25/18 29/21 32/17 12/05 Weather tomorrow Clear Clear Clear Clear Clear Clear Clear P Cloudy Max/min 27/17 19/06 31/18 24/09 24/18 31/22 27/14 11/03 Weather tomorrow C Showers Clear P Cloudy Cloudy Clear C Showers C Storms Clear Clear C Rain C Storms Clear C Showers Clear Snow Clear Clear C Showers C Rain Clear C Storms Clear Cloudy Max/min 17/14 18/11 34/23 03/-2 21/09 23/16 31/23 21/14 19/13 14/11 29/26 26/18 06/01 28/23 03/02 17/10 -5/-6 07/02 24/19 02/-8 29/25 27/17 10/00 zPlease send your questions by e-mail to: [email protected] LEGAL SYSTEM IN QATAR Under Article 5, bank transactions, the business of money exchange firms, financial exchanges, investment and financing; commercial agency and brokerage; supply contracts; public depositories and pledges arranged on property deposited in them; extractive operations for resources of natural wealth, such as mines, oil, gas and others; insurance of all types; business and activities in places prepared for the public, such as public sports places, cinemas, hotels, restaurants and premises for sale by auction; business and activities of places of education and private hospitals; concessions of public utilities, such as the distribution of water, electricity, gas and the provision of postal, telegram and telephone communications and so on; transportation on land, sea and air; the business of maintenance, cleaning and other commercial services; Business agencies, tourism offices, exportation, importation, customs clearance and employment of foreign workers; works related to printing, publishing, the press, radio, television, the carrying of news or pictures, advertisements and the sale of books; Industry, even if related to agricultural investments, and contracting for erections and manufacture; works related to contracting for construction, structures, repairs and demolition shall be considered commercial acts irrespective of the capacity or intention of the person performing the same. All business activities related to sea and air navigation are considered to be commercial work by Article 6. Accordingly the construction of ships or aircraft, their sale, purchase, letting, leasing and repair; lending and borrowing; contracts related to the employment of a ship’s master and sailors, and an aircraft captain and crew, and other personnel onboard ships and aircraft; sea and air transportation and all operations related to this, such as the purchase or sale of their requirements for supplies, equipment, stores, fuel, ropes, sails, provisions and materials for the provisioning of aircraft; and marine and air insurance of all types are commercial work. In short all acts relating to commercial transactions specified above or facilitating the same and all acts performed by the trader for the need of his business shall also be considered as commercial acts. Fundamentally the contracts and obligations of a trader are commercial except when it is proved that such contracts and obligation pertain to civil transactions. Around the world Athens Beirut Bangkok Berlin Cairo Cape Town Colombo Dhaka Hong Kong Istanbul Jakarta Karachi London Manila Moscow New Delhi New York Paris Sao Paulo Seoul Singapore Sydney Tokyo Weather today P Cloudy Rain Clear Cloudy Clear P Cloudy T Storms P Cloudy Clear Clear T Storms Clear P Cloudy P Cloudy Cloudy P Cloudy Snow C Rain T Storms Clear T Storms Clear Snow Max/min 15/13 16/11 34/24 02/-3 19/08 26/18 32/24 22/15 21/13 13/10 30/25 27/14 07/01 28/22 -1/-3 17/09 03/-10 07/02 23/19 02/-8 29/25 26/15 03/01 16 Gulf Times Saturday, January 31, 2015 QATAR A walrus also enthralled spectators with its antics. Spring Festival performers pose in colourful costumes. The performance by dolphins captivated the crowd. PICTURES: Jayaram Dolphins delight crowds at Souq Waqif celebration By Joey Aguilar Staff Reporter Unique characters entertain visitors at Souq Waqif. Lighted robots lead the parade along the souq alley. T he Souq Waqif Spring Festival continues to attract a large number of visitors, who spent their weekend watching several shows and activities at various venues. The dolphin show seemed to be the most anticipated event at the festival. Dolphins have continued to enthrall a huge crowd with their spectacular acrobats, singing, drawing and dancing prowess. As early as 5.45pm, hundreds of people have already been queuing at the entrance behind the Al Rayyan Channel to buy tickets (which cost QR50 and QR100). “This was the first time I watched a dolphin show and it really amazed me and my kids,” said Pradeep, who was busy filming and taking photos of the show. “I hope a similar show will be held in Al Khor.” Along the major street of the souq, a parade of unique characters wearing colourful costumes such as the Stripes Circus, Palettes and Roaming Clowns entertained visitors. Traditional shows of local performers also highlighted the celebration, attracting many spectators and tourists. Besides food served at many Arab restaurants, different street foods such as local crepes flavoured with honey, egg and cheese were also a big hit.At the Al Ahmed Square, pony and camel rides, as well as extreme rides, were a big draw especially for children. Many residents also lauded the opening of Souq Waqif’s underground parking saying it provided a relief to thousands of motorists. An Egyptian couple said they used to spend more than 30 minutes to find a parking slot. But yesterday, it only took them less than five minutes. A huge crowd thronged the dolphin show yesterday. Falcon festival to conclude with Mazayen contest Q atar International Falcon and Hunting Festival concludes today at Katara, the Cultural Village Foundation, with Mazayen (the most beautiful falcon) competition as well as the awards ceremony at 5.30pm. The final rounds to determine the top three winners for events including the Dau (local division), Hudud Al Saluki and the Hudud Al Tahaddi challenge were held yesterday. Summing up the month-long festival, Ali bin Khatim al-Mahshadi, chairman of the Supreme Organising Committee said: “This edition of the festival has achieved success beyond our expectations, which is ample reward for the extensive efforts of preparation and receiving visitors at the festival grounds . We thank everyone who participated in the festival and visited. We hope they have enjoyed the many exciting events.” The results of the local division of the Dau event saw several winners including Mohamed Saleh al-Qamra al-Nabet al-Marri, Ahmed Misnad alMisnad, Khaled Rashid Saleh Aba al-Zamat al-Marri, Misnad Ahmed al-Misnad, Sheikh Abdulaziz bin Jabor al Thani and Mana Abdulhadi al-Shahwani al-Hajri. A falcon hunting a homing pigeon. The winners in the Hudud Al Saluki event were Sheikh Ali Abdullah Khaled Hamad alThani and Saud Ahmed Mubarak BuGhanem al-Sulaiti. Hudud Al Tahaddi challenge Visitors enjoy the exciting events at the festival. winners were Mohamed Saleh al-Qamra al-Marri and Mohamd Saad al-Rumaihi. The Dau event showcases the skills of a falconer in training his falcon. A falcon is required to cross a distance of 400 metres to reach the finish line, with the help of a signal from its owner in the shortest possible time. The Hudud Al Saluki event is a race in which salukis, or Arabian grey- hounds, try to cover a distance of two kilometres in the shortest time. The Hudud Al Tahaddi challenge is a competition in which falcons seek to obstruct the flight of homing pigeons which are specially trained to fly to a point many kilometers away, and causing them to land. The sixth edition of the Qatar International Falcons and Hunt- ing Festival is being organised by the Gannas Society under the patronage of HE Sheikh Joaan bin Hamad bin Khalifa al-Thani at Sabkhet Marmi near Sealine, Mesaieed. OIL PLUNGE | Page 2 BANKS FALL | Page 10 Iraq adopts revised 2015 budget India stock index sheds 499 points Saturday, January 31, 2015 Rabia II 11, 1436 AH RECESSION FEARS MOUNT: Page 11 GULF TIMES Russian central bank makes surprise interest rate cut BUSINESS Qatar Airways buys $1.73bn stake in British Airways parent IAG QA may consider increasing investment in IAG; EU rules limit the Gulf carrier to a 49% holding; IAG itself contemplating a $1.52bn bid for Ireland’s Aer Lingus Bloomberg London Q atar Airways bought a 9.99% stake in British Airways parent IAG, drawing closer to its main European ally in a partnership that promises better access to the Americas and traffic flows through its expanded Doha hub. Qatar Airways may consider increasing the investment — valued at £1.15bn ($1.73bn) based on Thursday’s close — over time, but will stick with the holding for now, it said in a statement. European Union rules limit the Gulf carrier to a 49% holding in London-based IAG. The companies have grown increasingly close since Qatar Airways chief executive officer Akbar al-Baker joined IAG’s Oneworld Alliance in 2013, sponsored by the European carrier’s CEO Willie Walsh. The surprise purchase, after Qatar built a 20% stake in BA’s London Heathrow hub, comes as IAG itself contemplates a $1.52bn bid for Ireland’s Aer Lingus. “Qatar’s thinking has three key elements,” said John Strickland, director at aviation analysts JLS Consulting. “Oneworld and the relationship with the BA, the good personal relationship between Willie Walsh and Akbar al-Baker, and Qatar as a shareholder in Heathrow. It’s all about global flows and the importance of London, Asia and their new hub in Doha.” Shares in IAG, which have risen 44% in the last three months, jumped to 590 pence in early trade, their highest since the group was formed four years ago, before giving up those gains to trade down 1.2% at 1408 GMT. IAG’s stock has advanced 15% this year after gaining 21% in 2014 and more than doubling in value in 2013, outperforming European peers Air France-KLM Group and Deutsche Lufthansa as Walsh pushes through savings at Spanish unit Iberia and benefits from a booming trans-Atlantic travel market. IAG has also taken a more pragmatic attitude the growth of the big three Gulf carriers, also including Dubai-based Mannai Corporation in $14.5mn funding for NEXThink expansion Mannai Corporation, along with other partners, has pitched in with $14.5mn funding for the Swiss IT analytics firm NEXThink. The funding will be deployed for additional investment in its existing markets such as the UAE and Saudi Arabia, for expansion and product developments in the cloud and mobility spaces, Pedro Bados, the company’s CEO, president and co-founder was quoted as saying. The other partners are Auriga Partners, Venture Incubator (VI) Partners. However, it was not known as to how much did the partners individually participated in the funding. NEXThink was founded in 2004 with the vision of transforming how the Global 5000 and service providers see, use and operate their IT infrastructure. NEXThink has the most advanced intelligent monitoring, discovery and analytics solution on the market that audits IT infrastructure in real-time from the perspective of end users’ workplaces, physical or virtual, and it is integrated into leading management software solutions for true end-to-end IT management. The entity — which is into banking, telecom, hydrocarbons and government sectors — is also eyeing other social infrastructure sectors in view of the critical importance to the respective national economies. In 2012, Mannai Corporation had joined Auriga Partners and Venture Incubator, in the $5.5mn Series C funding. “We were impressed with the NEXThink team and saw that they had created a truly innovative and disruptive product which is why we became their first VAR in the Middle East a couple of years ago,” Alekh Grewal, Mannai Corporation CEO and NEXThink Board Member, had said at that time. Morocco’s Attijariwafa Bank to grow Islamic business without help Reuters Rabat Qatar Airways CEO Akbar al-Baker with IAG CEO Willie Walsh. “IAG represents an excellent opportunity to further develop our westwards strategy,” al-Baker said in the statement yesterday. Emirates and Etihad Airways of Abu Dhabi, by opting to bring Qatar into the Oneworld fold and embrace the links it can provide with Asia, rather than railing against the new threat. “This strategy could be seen as a defensive ‘if you can’t beat them, join them’ move and should in time improve IAG’s structural and competitive positioning,” Jefferies analyst Mark Irvine-Fortescue said in an investor note. “The core structural difficulty for European airlines relates to huge capacity growth from Middle East carriers.” Walsh said yesterday that the Qatar investment should further IAG’s ambitions to be the top global airline group. “We will talk to them about what opportunities exist to work more closely together,” he said in a statement from IAG. The Qatari stake in a leading global carrier contrasts with investments by Etihad, the Gulf No 3, which has built an alliance based around equity stakes in struggling airlines in need of investent, including Air Berlin and Alitalia. Emirates — which has eschewed purchases in recent years — Qatar Air and Etihad have all exploited the Gulf’s position at a crossroads for global flight-paths to funnel more traffic through their hubs, with Dubai International airport last year toppling Heathrow as the No 1 airport by international traffic. Qatar has sought to invest its wealth from natural-gas resources with a variety of purchases involving well-known brands from car maker Volkswagen to the Harrods department store in London, though most have been made through its sovereign wealth fund rather than an industrial partnership. “IAG represents an excellent opportunity to further develop our westwards strategy,” al-Baker said in the statement. “It makes sense for us to work more closely together in the near term.” Both Walsh and his Qatar counterpart are known as tough taskmasters, willing to squeeze manufacturers. Walsh earned the nickname “Slasher Walsh” in his former job as boss of Aer Lingus, while al-Baker has refused to accept planes from Airbus Group that were not up to his standards. Walsh has been the prime proponent of consolidation in the European aviation market, pushing through the merger of British Airways and Iberia to create IAG in 2011. IAG added Deutsche Lufthansa’s BMI unit — previously British Midland — a year later and then bought Spanish discounter Vueling in 2013. Buying Aer Lingus would win IAG scarce take-off and landing positions at Heathrow airport, Europe’s top hub. M orocco’s Attijariwafa Bank plans to build its own Islamic finance business rather than tying up with a foreign partner, it said yesterday, as the north African country opens up to shariacompliant banking. Morocco’s parliament gave final approval in November to an Islamic finance bill that will allow the creation of Islamic banks and enable private firms to issue Islamic debt. The move has led other Moroccan banks, including Banque Centrale Populaire and BMCE Bank to hold talks with foreign banks about launching local Islamic offshoots. “We have got many propositions from international Islamic banks, but we are not really looking for a partner,” Moham- ed Kettani, Attijariwafa’s chief executive, told Reuters. “At least for now, we will keep Dar Assafaa 100% for us,” he added, referring to the company’s Islamic business. Morocco’s Islamic finance drive accelerated after a moderate Islamist-led government took power through elections in late 2011, and as the government has struggled with a big budget deficit. One of the hopes is that Islamic bond issues could attract wealthy investors from the Gulf. Attijariwafa Bank, controlled by the Moroccan royal family’s investment holding company SNI, has been the only local bank to create an Islamic subsidiary since the country began allowing conventional banks to offer a limited set of Islamic financial services in 2010. “We have already done most of the work, so we will see how the market goes,” Kettani said. Greece says will not co-operate with troika or seek aid extension Reuters Athens T he new leftwing government in Athens opened negotiations on its bailout package with European partners yesterday by flatly rejecting the expected extension of the programme and the international inspectors overseeing it. Finance Minister Yanis Varoufakis met Jeroen Dijsselbloem, head of the eurozone finance ministers’ group, in Athens for what both described as “constructive” discussions on the new government’s aims. But the hour-long meeting appeared to do nothing to bridge the gap between Prime Minister Alexis Tsipras’ government and European partners who have insisted that Greece must respect its obligations under the €240bn bailout. The meeting with Dijsselbloem was the first in a series for Varoufakis, who travels to London, Paris and Rome next week as the government looks to build support. Tsipras, who makes his first foreign visit as prime minister to Cyprus on Monday, will also be in Rome on Tuesday for meetings with Italian Prime Minister Matteo Renzi, one of the leading voices in Europe against strict budget austerity. But he said Greece had no intention of cooperating with a mission from the “troika” of European and International Monetary Fund lenders and would not be seeking an extension to a February 28 deadline with eurozone lenders. “This platform enabled us to win the confidence of the Greek people,” he told reporters after the meeting. “Our first action as a government will not be to reject the rationale of questioning this programme through a request to extend it.” Dijsselbloem said a decision on the deadline would be reached before the end of February but rejected Greece’s push for a special conference on debt, saying a conference already existed in the form of the Eurogroup of eurozone finance ministers. Varoufakis gave no indication of what Greece, which must be under a EU/IMF bailout programme to ensure its banks have continued access to ECB funding, would do if it cannot reach an agreement by the deadline. Athens is waiting on a final bailout tranche of €7.2bn ($8.13bn) and has been shut out of international bond markets faces but faces around 10bn euros in debt repayments this summer. German Finance Minister Wolfgang Schaeuble repeated a message hammered home by Berlin since the new Greek government’s arrival, saying German generosity had already been stretched to its limit and that it could not accept blackmail. Tsipras’ government has taken office showing it has no intention of softening its opposition to the bailout programme, halting privatisations, reinstating hundreds of laid-off public sector workers and increasing low-income pensions. Varoufakis said he had assured Dijsselbloem that Athens planned to implement reforms to make the economy more competitive and have balanced budgets but that it would not accept a “self-fed crisis” of deflation and nonviable debt. In turn, Dijsselbloem said he had told the new government to respect the terms of the existing agreement between Greece and the eurozone and warned against taking unilateral steps, saying it was important not to reverse progress made so far. He said eurozone partners were ready to continue supporting Greece until it can begin borrowing on the markets again “provided that Greece fully complies with the requirements and objectives of the programme”. Eurogroup chief Jeroen Dijsselbloem (left) and Greek Finance Minister Yanis Varoufakis speak during a press conference following a meeting at the Finance Ministry in Athens yesterday. Their hour-long meeting appeared to do nothing to bridge the gap between Prime Minister Alexis Tsipras’ government and European partners who have insisted that Greece must respect its obligations under the €240bn bailout. 2 Gulf Times Saturday, January 31, 2015 BUSINESS Centurion said to plan Travelex, UAE Exchange merger, IPO Bloomberg Dubai A bu Dhabi-based Centurion Investments plans to merge Travelex Holdings with UAE Exchange and sell a stake in the merged entity to the public, two people with knowl- Orpic plans IPO no earlier than 2017 amid market woes Oman Oil Refineries & Petroleum Industries Co plans to sell its first shares to the public no earlier than 2017, amid market turmoil and unfinished projects to upgrade a refinery and build a plastics factory, Bloomberg reported. Orpic is making $2.1bn in improvements to its oil refinery in the city of Sohar, including the addition of a hydrocracker unit, the state-run company said in an e-mailed response to questions from Bloomberg. It plans to commission the $3.6bn Liwa plastics plant at Sohar in 2018, it said. Brent crude has dropped 54% in the last 12 months amid a global oversupply of oil and slower demand growth in China. “In light of the above projects and the current market conditions, the company and its shareholders will decide the appropriate timing of such IPO, and it is likely to take place not earlier than 2017,” after completion of the Sohar refinery improvements, Orpic said. It didn’t elaborate on the market conditions. Oman, the largest non-Opec oil producer in the Arabian Peninsula, plans to reduce stakes in some state-run assets, and the Muscat Securities Market has held talks with the government about IPOs in the energy industry, Ahmed Saleh al-Marhoon, the bourse’s director general, said in an interview in February 2014. The government asked energy companies to review their costs after crude fell to ensure they can produce economically at lower prices, the Times of Oman reported yesterday, citing oil ministry Undersecretary Salim al-Aufi. Brent, a pricing benchmark for more than half of the world’s crude, has slumped 14% this year. Oman’s oil production declined in November to 926,000 bpd, the lowest level since May 2013, according to figures on the Joint Organisations Data Initiative website. The country expects to pump an average of 980,000 bpd in 2015, the Times of Oman reported. edge of the matter said. Saeed bin Butti’s Centurion, which acquired a majority stake in Travelex with Bavaguthu Raghuram Shetty, is aiming for an initial public offering in 2016 and is talking to banks to appoint an adviser for the deal, the people said, asking not to be identified because the matter is private. The company will probably be listed in the UAE, they said. Apax Partners, one of Europe’s largest private-equity firms, agreed in May to sell its majority stake in Travelex, a retail currency exchange, to Centurion and Shetty, the founder of UAE Exchange. Apax, which had been poised to take Trave- lex public, bought control of the chain in 2005 in a deal that valued the company at about 1.1bn pounds ($1.7bn). The Centurion deal is now complete, the people said. Khalifa bin Butti bin Omeir, whose KBBO Group owns Centurion, will be appointed chairman of Travelex and Shetty will be appointed vice chairman, the people said. A spokesman for UAE Exchange said the company doesn’t comment on speculation. Travelex, which has more than 1,500 outlets and more than 1,300 cash machines in 27 countries, sold assets including a card-programme management unit to MasterCard Inc in 2011 and a business-payments unit to Western Union Co to focus on its consumer business. Shetty founded UAE Exchange in 1980 in Abu Dhabi, according to its website. The currency-exchange and money-transfer company now has 750 offices in 32 countries. Shetty raised $750mn to help fund the acquisition of a stake in Travelex, three people with knowledge of the matter said in December. Goldman Sachs and QNB arranged the loan and were lenders with Doha Bank, National Bank of Fujairah and Commercial Bank International, the people said, asking not to be identified as the information is private. Iraq adopts revised ’15 budget curbed by oil Forecasts oil at $56, above current market price; seals oil-sharing deal with Kurdish region; PM fears low oil revenue could hurt campaign against IS Reuters Baghdad I raq’s parliament has approved a budget worth 119tn Iraqi dinars ($105bn), made possible by improved ties between Baghdad and the autonomous Kurdish region but constrained by plunging global oil prices. Passage represents a victory for Prime Minister Haider al-Abadi, who fears lower oil revenues could hurt Iraq’s military campaign against Islamic State, which swept across northern Iraq last summer, prompting US-led air strikes. The budget, revised to trim the expected price of oil to $56 a barrel, down from the $70 originally assumed, foresees a 25tn dinar deficit. The adjusted oil forecast may have satisfied some MPs who saw previous estimates as unrealistic, but others remain critical. “I don’t know if they are deceiving themselves or the Iraqi people by saying the price of oil is $56,” MP Kadhim al-Saidi told reporters before voting began. Brent crude has been trading just below $50 this week, down from $115 in June. The budget seals a financial arrangement between Baghdad and the Kurdish region that will see the Kurds export 300,000 bpd of oil from Kirkuk and 250,000 bpd from their own fields in return for a 17% share of the budget. Opponents decried the size of Kurdistan’s share as unfair. “There is no legal formulation or constitutional cover for this agreement. It appears the political blocs ... robbed the Iraqi people,” said Saidi. For al-Abadi, the budget is a sign of growing goodwill between Baghdad The company of Lukoil is seen in West Qurna oilfield in Iraq’s southern province of Basra. Iraq’s budget, revised to trim the expected price of oil to $56 a barrel, down from the $70 originally assumed, foresees a 25tn dinar deficit. and the Kurdish region as they both fight Islamic State. Kurdish peshmerga forces rolled back the radical militants after they surged across the Syrian border last summer, threatening the regional capital Arbil. But Islamic State, holding large swaths of Iraq’s north and west, remains a threat to the country’s security and unity. Defence alone is expected to take up 20% of 2015 budget expenditure. In addition, the state must ensure the payment of its civil servants, with more than 5mn state employees. It is withholding 15% of high-level government salaries, which are meant to be paid back when the country is more financially stable. Nechirvan Barzani, prime minister of the Kurdish region, praised the 2015 budget but pointed out the country remains in dire financial straits. “It is very good, but unfortunately (Baghdad) doesn’t have money,” he told Reuters. The government is expected to finance the deficit through Treasury bills, government bonds and borrow- ing from local banks. In addition, Iraq plans on drawing funds from the International Monetary Fund through its Special Drawing Right, and will introduce a tax on imported cars and cellular telephone SIM cards and the Internet. Kuwait has agreed to defer for one year Iraq’s reparations for its 1990 invasion of its neighbour. Turkish trade deficit in line with forecasts; lira plunges Reuters Istanbul T urkey’s trade deficit, the chief contributor to a large current account deficit seen as the economy’s main weakness, shrank 14.6% to $8.51bn in December, in line with expectations. In 2014 as a whole, the deficit narrowed 15.4% to $84.51bn, data from the Turkish Statistics Institute showed yesterday. Turkish markets largely shrugged off the data but the lira hovered close to a record low hit on Thursday on expectations the central bank will cut interest rates at an extraordinary policy meeting next week. The central bank cut interest rates earlier this month by 50 basis points, facing renewed criticism from key government figures for not cutting it more sharply ahead of a general election in June. On Tuesday, Governor Erdem Basci said that if the January inflation figures due to be released on February 3 showed a sharp fall, then the bank could convene a monetary policy meeting (MPC) as early as the following day. Analysts say the lira was also under pressure from the US Federal Reserve’s potential rate hikes for later this year and a politicisation of monetary policy could further add downward pressure on the Turkish currency. “The central bank governor’s A money changer counts Turkish lira bills at a currency exchange office in central Istanbul. The lira hovered close to a record low on expectations the central bank will cut rates at an extraordinary policy meeting next week. warnings that they may cut interest rates in an unscheduled meeting within next week hit the Turkish Lira to a record low against USD,” Oyak Securities said in a research note. The lira traded at 2.4150 against the dollar at 0927 GMT, versus 2.4036 late on Thursday and a record low of 2.4240. The main equities index gained 0.28% to trade at 88,808.17 points by 0921 GMT, while the emerging markets index was down by 0.62%. The benchmark 10-year government bond yield was at 7.09% versus 7.06% on Thursday. Turkish central bank seen cutting rates at early policy meeting The Turkish central bank is expected to hold an extraordinary monetary policy committee (MPC) meeting after the release of inflation data on February 3 and to cut its policy rate by 50-75 basis points, according to a Reuters poll. The government has been exerting growing pressure on the central bank to lower rates ahead of a June parliamentary election. The next scheduled policy meeting was on February 24. Central Bank Governor Erdem Basci said on Tuesday an early MPC meeting could be held as soon as February 4 if annual inflation falls more than one percentage point in January. According to the median forecast of 17 economists in the poll, consumer price inflation was expected to fall to 6.80% year-on-year in January from 8.17% in December. Asked whether the inflation data would be followed by an early MPC meeting, all 15 who responded said they did expect such a move, with seven forecasting a 50 basis point cut in the policy rate, the one-week repo, and eight a 75 bps reduction. The central bank cut the one-week repo rate last week by 50 basis points to 7.75% in response to slowing inflation, but immediately drew a rebuke from government ministers who said it was not enough to support growth. Gulf Times Saturday, January 31, 2015 3 BUSINESS Opec output rises in January as its key members stand firm Supply rises by 130,000 bpd, led by Angola; Saudi Arabia, Gulf members keep output steady to higher; Iraq exports dip after December surge; output 370,000 bpd above Opec’s 30mn bpd target Reuters London O pec’s oil supply has risen this month due to more Angolan exports and steady to higher output in Saudi Arabia and other Gulf producers, a Reuters survey showed, a sign key members are standing firm in refusing to prop up prices. The Organisation of the Petroleum Exporting Countries at a November meeting decided to focus on market share rather than cutting output, despite concerns from members such as Iran and Venezuela about falling oil revenue. Supply from Opec has averaged 30.37mn bpd in January, up from a revised 30.24mn bpd in December, according to the survey based on shipping data and information from sources at oil companies, Opec and consultants. At the November 27 meeting, Opec retained its output target of 30mn bpd, sending oil prices to a fouryear low close to $71 a barrel. Crude since fell to a near six-year low of $45.19 on January 13 and was trading above $49 on Friday. Opec secretary general Abdulla al-Badri, speaking in London on Monday, defended the no-cut strategy and said prices may have reached a floor, despite oversupply. Other Opec delegates have since echoed this message. “Prices are stabilising,” said a delegate from a Gulf producer. “But the world economy is not very strong and stocks are too high.” The largest boost this month has come from Angola, which pumped 1.80mn bpd and exported about 57 cargoes, up 160,000 bpd from December. Output would have been higher without some cargo delays, including of new crude Sangos. Opec’s other West African producer, Nigeria, also managed to boost exports, the survey showed, although the increase was restrained by outages of the Forcados and Nembe Creek pipelines. Smaller increases have come from Kuwait, Qatar and the UAE. Output in top Opec exporter Saudi Arabia has been flat to slightly higher, sources said. Saudi Aramco chief executive Khalid al-Falih said on Tuesday production was currently at 9.8mn bpd, although it was unclear if that was the daily rate or the January average. “Steady is what I’m seeing,” said an industry source who tracks Saudi supply. “Exports are a bit lower and this is most likely offset by slightly higher refinery runs.” The largest reduction this month has come from Iraq, where southern oil exports slipped from December’s record high and flows from northern Iraq also declined, according to loading data and an industry source. Exports are likely to hit new records in coming months, technical problems and weather delays permitting. A loading programme schedules record southern exports in February. Opec’s other country with a notable decline in output this month is Libya, where ports and oilfields have been shut due to fighting and supply fell further in January to 350,000 bpd. A man walks past the Opec building in Vienna, Austria. Supply from Opec has averaged 30.37mn bpd in January, up from a revised 30.24mn bpd in December, according to the survey based on shipping data and information from sources at oil companies, Opec and consultants. Oil plunge costs North American investors $390bn since June Bloomberg New York Investors have a message for suffering US oil drillers: We feel your pain. They’ve pumped more than $1.4tn into the oil and gas industry the past five years as oil prices averaged more than $91 a barrel. The cash infusion helped push US crude production to the highest in more than 30 years, according to data compiled by Bloomberg. Now that oil prices have fallen below $45, any euphoria over cheaper energy will be tempered by losses that are starting to show up in investment funds, retirement accounts and bank balance sheets. The bear market has wiped out a total of $393bn since June - $353bn from the shares of 76 companies in the Bloomberg Intelligence North America Exploration & Production index, and almost $40bn from high-yield energy bonds, issued by many shale drillers, according to a Bloomberg index. “The only thing people are noticing now is that gas prices are dropping,” said Sean Wheeler, the Houston-based co-chairman of the oil and gas industry team for law firm Latham & Watkins. “People haven’t noticed yet that it’s also hitting their portfolios.” The money flowing into oil and gas companies around the world in the last five years came from a variety of sources. The industry completed $286bn in joint ventures, investments and spinoffs, raised $353bn in initial public offerings and follow-on share sales, and borrowed $786bn in bonds and loans. The crash caught investors and lenders by surprise. Eight months ago, Houston-based oil producer Energy XXI Ltd sold $650mn in bonds. Demand was so high that the company more than doubled the size of the offering, company records show. The debt is now trading for less than 50 cents on the dollar, and the stock has declined 88%. Energy XXI, which has more than $3.8bn in debt, is one of more than 80 oil and gas companies whose bonds have fallen to distressed levels, meaning their yields are more than 10 percentage points above Treasury debt, as investors bet the obligations won’t be repaid, according to data compiled by Bloomberg. The stocks and bonds of Energy XXI and other struggling energy firms have been bought up by pension funds, insurance companies and savings plans that are the mainstays of Americans’ retirement accounts. Institutional investors had more than $963bn tied up in energy stocks as of the end of September, according to Peter Laurelli, a New York-based vice president of research with eVestment, an analytics firm in Marietta, Georgia, that gathers data on about $22tn of institutional strategies. Energy XXI’s second-largest reported shareholder is a group of funds managed by Vanguard Group Inc, the biggest US mutual-fund firm, according to data compiled by Bloomberg. The top reported owner of the bonds Energy XXI issued in May is Franklin Resources Inc in San Mateo, California, also known as Franklin Templeton Investments, which manages multiple funds that bought Energy XXI’s debt, according to data compiled by Bloomberg. Energy XXI didn’t return calls and e-mails seeking comment. The company has “plenty of liquidity,” Greg Smith, a spokesman, said in a December interview. A reckoning may also be in store for Energy XXI’s bank lenders. The company, which drills in the Gulf of Mexico, has tapped $974mn of a $1.5bn credit line extended by a group of banks including Gulfport, Mississippi-based Hancock Holding Co’s Whitney Bank; Amegy Bank of Texas, a subsidiary of Salt Lake City-based Zions BanCorp; and Comerica Inc in Dallas, according to data compiled by Bloomberg. Energy XXI has also borrowed money from banks in the UK, Australia, Canada, Spain and Japan. The three US banks are also among the lenders to other struggling drillers. The loans are backed by oil reserves that are worth less at today’s prices than they were when banks last performed scheduled revaluations of the collateral. Representatives of Amegy, Comerica and Hancock declined to comment on the performance of specific loans. Shares of Zions have declined 15% this month. Comerica is down 9.8%, and Hancock slid 15%. “This is a big deal for banks in states like Texas where oil is one of the most prominent businesses,” said Brady Gailey, an Atlantabased analyst at Stifel Financial Corp’s KBW unit. “There are going to be loan losses and it’s going to hit multiple banks that have exposure to that credit. It will slow economic growth, it could ding real estate values, banks will lose money and their stock will get slammed.”One regional lender with energy exposure is Lafayette, Louisiana-based MidSouth Bancorp Inc, with 21% of its $1.25bn of lending tied to oil and gas, according to regulatory filings. Rusty Cloutier, MidSouth’s chief executive officer, said he’s not worried about the oil decline hurting his business because the bank’s portfolio consists of experienced oil and gas companies. ‘Big Oil’ cuts $20bn in five hours to shield dividends Bloomberg Houston/Chicago T he first major oil companies to report earnings amid the worst oil crash since 2009 all pledged to protect shareholder payouts even as they announced more than $20bn in spending cuts in a span of five hours. By preserving and even increasing dividends, energy companies are attempting to keep investors on board while they wait for oil and natural gas prices to rebound to more profitable levels. Producers, meanwhile, are choosing to cut drilling programmes and workforces to weather a downturn that could extend for years. Royal Dutch Shell, Occidental Petroleum Corp and ConocoPhillips pledged to slash spending by almost $10bn this year alone - enough to drill more than 1,400 shale wells. The risk: cannibalising budgets to feed cash to shareholders may leave companies with reserves too anaemic to fuel future output, said Timothy Doubek, who helps manage $26bn in corporate debt at Columbia Management Advisors. “It’s a pretty impressive axe they’re taking to their drilling budgets, but when the stock is down 30% or 50%, what are they trying to protect by preserving dividends?” Doubek said in a telephone interview from Minneapolis. “You’re protecting a stock price that can’t be protected. Why don’t you keep as much cash as possible so you can be the first one to take advantage when assets go up for sale?” Shell, Occidental and ConocoPhillips handed over more than $17bn in dividends to shareholders last year, according to data compiled by Bloomberg. For the full year, Shell and ConocoPhillips paid out $11.8bn and $3.5bn, respectively. Occidental’s dividend bill for the first nine months of 2014 was $1.69bn; the company hasn’t yet disclosed its fourth-quarter payout. The scaled-down 2015 investment programmes overshadowed a mixed bag of results the companies announced as they closed the books on the fourth quarter. “We see pressure on our investment programme,” Shell chief executive officer Ben van Beurden said on Bloomberg TV. “It’s a game of being prudent, but at the same time not overreacting.” Crude oil fell below $44 a barrel in New York trading Thursday, the lowest in almost six years, as rising US production adds to oversupplies. Statoil, Tullow Oil and Premier Oil said they’ve delayed projects or cut exploration spending. BP has frozen wages and Chevron Corp delayed announcing its 2015 drilling budget so that it could reassess the market. By cutting spending, companies aim to protect returns to energy investors who count on dividends as a safe haven from commodity price risks. ConocoPhillips emphasised on Thursday it will protect its dividend above all else, even if it has to increase its dependence on debt. Additional borrowings might reduce the company’s credit rating, but not below investment grade levels, Chief Financial Officer Jeff Sheets said in an interview. ConocoPhillips investors need to understand that the dividend is “part of their return they will get on our shares that they don’t have to be concerned is going down,” Sheets said. ’’The fact that you’ve committed to that level of payout is going to make you very disciplined about your level of capital investments as well.’’ Occidental Thursday reported its first quarterly loss in more than a decade, and ConocoPhillips and Hess Corp also saw their first three-month losses in years. Shell reported higher fourth- quarter earnings, but still fell short of analysts’ expectations. The severe spending cuts aren’t a sustainable strategy for oil companies, said Bruce Bullock, director of the Maguire Energy Institute at Southern Methodist University in Dallas. Producers must invest in new oil and gas wells for the future to replace dwindling production from older wells. Shell’s van Beurden on Thursday warned that cancelling or delaying too many projects could jeopardize supply over the longer term. “They find themselves with the difficult choice of reducing spending or dividends,” Bullock said. “Many are choosing to continue paying shareholders, since investing more amid low prices would be seen as providing sub-par returns. Cutting dividends could bring a crushing response from investors.” Some smaller companies are making that hard choice. Canadian Oil Sands Ltd said on Thursday it will reduce its dividend by 86% to 5 cents a share from 35 cents. The cut helps brace the company for “a prolonged period of low oil prices,” Chief Executive Officer Ryan Kubik said in a statement. Larger companies so far are holding fast. “The dividend remains our top priority for capital allocation,” ConocoPhillips chairman and chief executive officer Ryan Lance said in a conference call with investors Thursday. Shell plans to pay a first-quarter dividend of 47 cents a share, unchanged from the previous two quarters, the Hague-based company said in a statement. The company, which plans to defer or cancel about 40 projects worldwide, will cut spending by $15bn over three years to make it possible to keep paying shareholders, bringing total cuts announced on Thursday for all three companies to $20bn. “The dividend is an iconic item at Shell and I will do everything to protect it,” Van Beurden said. Profit excluding one-time items and inventory changes was $3.3bn in the quarter, up from $2.9bn a year earlier, Shell said. That missed the $4.1bn average of 13 analyst estimates compiled by Bloomberg. “Shell widely missed expectations in upstream, particularly in the Americas, but performed well in downstream — a key cushion for integrated oil companies in a declining crude price environment,” said Kim Fustier, an analyst at Edison Investment Research. Shell missing expectations by about 20% “doesn’t bode well for competitors.” Petrol prices are shown at a Shell station in Encinitas, California (file). Royal Dutch Shell, Occidental Petroleum Corp and ConocoPhillips pledged to slash spending by almost $10bn this year alone - enough to drill more than 1,400 shale wells. Occidental swung to a loss of $3.41bn after the company wrote down the value of oil and gas fields it won’t drill until energy prices rise enough to make them profitable. Houston-based Occidental announced $2.9bn in spending cuts. ConocoPhillips, the thirdlargest US energy producer, said it lost $39mn and announced $2bn in additional spending cuts. The Houston-based company will spend $11.5bn drilling wells from Colorado to Indonesia, a decline of almost a third from last year. Exxon Mobil Corp, the world’s largest oil company by market value, reports earnings on Monday. The average price in the quarter for Brent crude, the benchmark used by most of the world, fell 30% from a year before to $77 a barrel. This month the benchmark extended its decline, touching $45.19 a barrel on January 13. Gulf Times Saturday, January 31, 2015 4 BUSINESS DJIA WORLD INDICES Company Name Exxon Mobil Corp Microsoft Corp Johnson & Johnson Wal-Mart Stores Inc General Electric Co Procter & Gamble Co/The Jpmorgan Chase & Co Pfizer Inc Chevron Corp Verizon Communications Inc Coca-Cola Co/The Merck & Co. Inc. At&T Inc Intel Corp Walt Disney Co/The Intl Business Machines Corp Visa Inc-Class A Shares Home Depot Inc Cisco Systems Inc 3M Co United Technologies Corp Boeing Co/The Unitedhealth Group Inc Mcdonald’s Corp American Express Co Nike Inc -Cl B Goldman Sachs Group Inc Du Pont (E.I.) De Nemours Caterpillar Inc Travelers Cos Inc/The Lt Price 88.16 40.97 101.18 86.43 23.93 85.31 54.92 31.62 101.92 45.46 41.58 60.88 33.19 33.62 91.85 153.09 246.00 106.07 26.77 163.51 115.51 144.05 107.10 92.50 81.51 93.35 174.18 72.46 79.62 103.00 % Chg 0.66 -2.48 -1.18 -0.45 0.38 0.18 0.31 -1.03 -1.73 -1.28 -0.81 -0.93 0.68 -0.47 -0.88 1.02 -0.15 1.27 -0.14 -0.26 -0.81 3.15 -1.25 4.19 -0.27 0.04 0.65 -0.34 -0.48 -1.47 3,943,178 19,169,942 1,504,676 1,810,795 13,795,910 2,929,155 6,397,014 7,124,674 4,237,672 5,714,876 4,568,630 2,156,555 8,341,346 11,508,721 2,219,019 3,126,776 757,130 1,906,072 7,800,597 750,999 761,754 4,118,996 1,600,214 8,501,514 2,152,901 717,549 935,273 760,119 1,521,455 759,779 FTSE 100 Company Name Wpp Plc Wolseley Plc Wm Morrison Supermarkets Whitbread Plc Weir Group Plc/The Vodafone Group Plc United Utilities Group Plc Unilever Plc Tullow Oil Plc Tui Ag-New Tui Ag-Di Travis Perkins Plc Tesco Plc Taylor Wimpey Plc Standard Life Plc Standard Chartered Plc St James’s Place Plc Sse Plc Sports Direct International Smiths Group Plc Smith & Nephew Plc Sky Plc Shire Plc Severn Trent Plc Schroders Plc Sainsbury (J) Plc Sage Group Plc/The Sabmiller Plc Rsa Insurance Group Plc Royal Mail Plc Royal Dutch Shell Plc-B Shs Royal Dutch Shell Plc-A Shs Royal Bank Of Scotland Group Rolls-Royce Holdings Plc Rio Tinto Plc Reed Elsevier Plc Reckitt Benckiser Group Plc Randgold Resources Ltd Prudential Plc Persimmon Plc Pearson Plc Old Mutual Plc Next Plc National Grid Plc Mondi Plc Meggitt Plc Marks & Spencer Group Plc London Stock Exchange Group Lloyds Banking Group Plc Legal & General Group Plc Land Securities Group Plc Kingfisher Plc Johnson Matthey Plc Itv Plc Intu Properties Plc Intl Consolidated Airline-Di Intertek Group Plc Intercontinental Hotels Grou Imperial Tobacco Group Plc Hsbc Holdings Plc Hargreaves Lansdown Plc Hammerson Plc Glencore Plc Glaxosmithkline Plc Gkn Plc G4s Plc Friends Life Group Ltd Fresnillo Plc Experian Plc Easyjet Plc Dixons Carphone Plc Direct Line Insurance Group Diageo Plc Crh Plc Compass Group Plc Coca-Cola Hbc Ag-Cdi Centrica Plc Carnival Plc Capita Plc Burberry Group Plc Bunzl Plc Bt Group Plc British Land Co Plc British American Tobacco Plc Bp Plc Bhp Billiton Plc Bg Group Plc Barratt Developments Plc Barclays Plc Bae Systems Plc Babcock Intl Group Plc Aviva Plc Astrazeneca Plc Associated British Foods Plc Ashtead Group Plc Arm Holdings Plc Antofagasta Plc Anglo American Plc Aggreko Plc Admiral Group Plc Aberdeen Asset Mgmt Plc 3I Group Plc Lt Price 1,470.00 3,883.00 179.60 5,020.00 1,688.00 235.70 1,032.00 2,935.00 368.30 1,148.00 1,177.00 1,929.00 225.55 135.80 404.10 885.50 865.00 1,593.00 710.50 1,113.00 1,195.00 932.00 4,889.00 2,186.00 2,896.00 262.60 481.70 3,597.00 457.40 434.10 2,143.50 2,055.00 368.40 886.00 2,883.50 1,160.00 5,710.00 5,405.00 1,635.50 1,604.00 1,358.00 208.60 7,265.00 941.90 1,184.00 548.50 487.40 2,406.00 74.48 268.10 1,298.00 347.30 3,278.00 221.50 368.70 562.00 2,301.00 2,650.00 3,151.00 616.20 1,027.00 697.00 249.20 1,484.50 368.60 286.80 402.10 860.50 1,184.00 1,868.00 423.70 316.20 2,010.00 1,608.00 1,155.00 1,080.00 292.00 3,005.00 1,110.00 1,756.00 1,930.00 427.10 836.50 3,774.50 428.00 1,460.00 902.60 456.70 236.10 516.00 1,005.00 532.00 4,737.50 3,151.00 1,117.00 1,043.00 653.50 1,093.50 1,551.00 1,444.00 443.00 464.70 % Chg 1.38 0.26 -2.87 0.40 2.55 -0.82 -0.96 -0.58 4.96 0.97 0.94 -0.21 -0.92 -1.31 -0.25 -2.15 0.70 0.82 0.00 -0.27 0.34 -0.21 0.18 0.74 -0.86 -0.11 0.00 0.07 -0.44 -0.85 -4.65 -4.57 -1.73 0.40 -0.38 1.31 1.60 -3.22 -0.30 1.45 1.34 0.00 0.48 -1.00 0.59 0.92 2.05 0.92 -0.37 -0.45 0.70 -0.74 -3.16 -0.72 0.05 0.36 0.57 -0.26 1.74 -0.32 3.22 0.07 -3.39 -0.80 -0.14 -0.24 0.25 -5.44 0.00 5.72 -1.24 0.32 2.45 -0.74 0.96 0.75 1.53 -2.05 -0.72 -1.79 0.36 0.05 -0.65 -0.51 0.74 3.29 2.46 -2.91 -0.32 0.58 0.60 0.09 -0.13 0.96 -0.36 -0.57 -2.97 -1.93 1.31 -0.89 -0.43 0.13 Volume 2,780,472 647,959 10,729,490 176,168 815,053 39,764,444 1,083,760 2,140,308 5,628,587 824,425 962,169 297,110 16,998,180 10,409,085 2,728,713 7,958,327 730,831 1,475,319 626,047 710,945 2,107,794 3,234,183 1,089,462 938,299 203,857 4,280,213 1,990,665 1,543,996 1,886,766 1,656,322 6,694,046 9,364,859 6,803,751 3,408,815 3,303,008 2,764,487 1,249,210 401,858 2,284,335 611,013 1,772,818 4,231,956 270,790 5,804,218 1,133,567 1,465,337 4,253,828 458,144 59,332,938 5,883,489 933,269 3,677,624 727,514 7,721,146 1,784,976 6,038,395 614,701 341,710 1,881,167 11,621,493 1,049,949 1,886,251 23,081,726 4,297,486 3,557,082 1,086,872 7,672,411 1,212,847 2,060,852 2,496,946 3,646,308 2,104,532 7,938,253 1,040,109 2,288,196 488,931 11,200,433 1,411,076 896,916 1,157,704 471,411 9,184,303 1,581,491 1,811,756 29,783,780 6,634,516 7,920,766 3,536,824 17,977,802 3,733,354 1,038,527 6,641,234 1,950,754 418,622 1,642,528 2,542,506 3,514,199 3,656,318 389,003 353,958 2,421,110 1,150,022 TOKYO Company Name Inpex Corp Daiwa House Industry Co Ltd Sekisui House Ltd Kirin Holdings Co Ltd Japan Tobacco Inc Seven & I Holdings Co Ltd Toray Industries Inc Asahi Kasei Corp Sumitomo Chemical Co Ltd Shin-Etsu Chemical Co Ltd Mitsubishi Chemical Holdings Kao Corp Takeda Pharmaceutical Co Ltd Astellas Pharma Inc Eisai Co Ltd Daiichi Sankyo Co Ltd Fujifilm Holdings Corp Shiseido Co Ltd Jx Holdings Inc Lt Price 1,304.00 2,186.50 1,526.00 1,590.00 3,232.50 4,337.50 1,009.50 1,172.00 468.00 7,848.00 614.10 5,181.00 5,903.00 1,829.50 5,888.00 1,713.00 3,998.00 1,898.00 435.80 % Chg 0.97 -1.06 0.36 0.89 0.61 0.15 1.38 1.43 -1.06 -0.44 0.56 2.98 0.73 0.36 5.29 2.27 0.33 4.11 0.00 Indices Volume Volume 3,706,100 2,110,900 4,769,600 4,398,000 6,021,100 2,719,600 11,276,000 5,079,000 7,419,000 1,580,700 7,486,900 3,585,600 4,487,900 8,889,700 4,477,500 5,444,000 4,831,600 5,096,400 10,330,100 Lt Price Change Dow Jones Indus. Avg S&P 500 Index Nasdaq Composite Index S&P/Tsx Composite Index Mexico Bolsa Index Brazil Bovespa Stock Idx Ftse 100 Index Cac 40 Index Dax Index Ibex 35 Tr 17,299.00 2,007.83 4,662.64 14,623.54 41,529.71 46,991.26 6,791.27 4,609.43 10,710.91 10,426.50 -117.85 -13.42 -20.76 -13.74 -332.62 -770.98 -19.33 -22.00 -26.96 -81.10 Nikkei 225 Japan Topix Hang Seng Index All Ordinaries Indx Nzx All Index Bse Sensex 30 Index Nse S&P Cnx Nifty Index Straits Times Index Karachi All Share Index Jakarta Composite Index 17,674.39 1,415.07 24,507.05 5,551.58 1,154.97 29,182.95 8,808.90 3,391.20 24,730.26 5,289.40 +68.17 +1.49 -88.80 +19.35 -3.20 -498.82 -143.45 -27.85 +41.34 +26.69 TOKYO Company Name Bridgestone Corp Asahi Glass Co Ltd Nippon Steel & Sumitomo Meta Sumitomo Metal Industries Kobe Steel Ltd Jfe Holdings Inc Sumitomo Metal Mining Co Ltd Sumitomo Electric Industries Smc Corp Komatsu Ltd Kubota Corp Daikin Industries Ltd Hitachi Ltd Toshiba Corp Mitsubishi Electric Corp Nidec Corp Nec Corp Fujitsu Ltd Panasonic Corp Sharp Corp Sony Corp Tdk Corp Keyence Corp Denso Corp Fanuc Corp Rohm Co Ltd Kyocera Corp Murata Manufacturing Co Ltd Nitto Denko Corp Mitsubishi Heavy Industries Nissan Motor Co Ltd Toyota Motor Corp Honda Motor Co Ltd Suzuki Motor Corp Nikon Corp Hoya Corp Canon Inc Ricoh Co Ltd Dai Nippon Printing Co Ltd Nintendo Co Ltd Itochu Corp Marubeni Corp Mitsui & Co Ltd Tokyo Electron Ltd Sumitomo Corp Mitsubishi Corp Aeon Co Ltd Mitsubishi Ufj Financial Gro Resona Holdings Inc Sumitomo Mitsui Trust Holdin Sumitomo Mitsui Financial Gr Bank Of Yokohama Ltd/The Mizuho Financial Group Inc Orix Corp Daiwa Securities Group Inc Nomura Holdings Inc Sompo Japan Nipponkoa Holdin Ms&Ad Insurance Group Holdin Dai-Ichi Life Insurance Tokio Marine Holdings Inc T&D Holdings Inc Mitsui Fudosan Co Ltd Mitsubishi Estate Co Ltd Sumitomo Realty & Developmen East Japan Railway Co West Japan Railway Co Central Japan Railway Co Ana Holdings Inc Nippon Telegraph & Telephone Kddi Corp Ntt Docomo Inc Tokyo Electric Power Co Inc Chubu Electric Power Co Inc Kansai Electric Power Co Inc Tohoku Electric Power Co Inc Kyushu Electric Power Co Inc Tokyo Gas Co Ltd Secom Co Ltd Yamada Denki Co Ltd Fast Retailing Co Ltd Softbank Corp Lt Price 4,738.00 630.00 277.50 0.00 208.00 2,611.50 1,698.00 1,530.00 31,870.00 2,332.00 1,763.50 8,275.00 897.30 474.60 1,376.50 8,074.00 334.00 625.60 1,352.00 232.00 2,774.00 7,410.00 55,490.00 5,251.00 19,890.00 7,650.00 5,224.00 12,820.00 7,085.00 655.10 1,016.50 7,645.00 3,581.00 3,756.00 1,504.00 4,599.00 3,740.50 1,157.00 1,065.50 11,430.00 1,200.00 653.50 1,507.00 8,476.00 1,168.00 2,068.00 1,249.50 632.30 588.40 416.50 3,990.50 639.80 194.00 1,367.00 862.50 634.50 3,300.00 2,889.50 1,594.00 4,140.00 1,339.50 3,000.50 2,383.50 3,785.00 9,130.00 6,078.00 20,320.00 326.20 7,020.00 8,363.00 2,005.00 502.00 1,562.00 1,143.00 1,492.00 1,143.00 706.30 6,874.00 440.00 44,020.00 6,963.00 % Chg 1.38 1.94 -4.01 0.00 -1.42 1.03 -0.35 0.13 0.97 -1.44 1.03 2.06 -0.21 2.31 1.03 0.12 -7.48 -2.01 -1.35 0.43 -0.04 0.68 -0.52 0.57 -1.19 1.06 -2.63 -1.35 -0.55 1.17 -1.12 -1.09 -0.78 0.04 -0.07 1.32 -0.01 -0.47 -1.21 1.74 0.17 -0.58 -0.10 1.48 -0.34 -0.96 -0.52 0.24 0.70 1.24 -0.29 0.42 -0.92 -3.49 -0.86 1.46 4.71 0.66 0.22 0.72 -0.07 -1.22 -0.60 -1.24 -0.84 -0.51 -0.12 -0.55 1.33 1.81 1.42 1.62 3.72 1.51 2.68 3.44 0.53 1.33 -0.90 0.79 -3.37 Volume 3,101,700 8,056,000 75,341,000 42,571,000 4,903,000 2,932,000 3,767,300 303,700 8,149,500 4,136,000 1,703,800 17,344,000 46,075,000 8,463,000 1,529,400 67,896,000 12,067,000 9,386,700 17,459,000 8,537,500 893,900 159,600 1,557,800 1,735,100 667,200 1,971,600 1,000,900 1,261,600 20,402,000 10,170,400 10,001,400 5,736,300 1,658,600 2,768,600 2,732,500 4,772,600 4,722,800 3,820,000 1,468,800 5,151,100 18,165,800 7,912,800 467,600 5,218,400 5,459,100 4,036,500 53,589,100 13,219,100 50,104,000 9,416,700 4,820,000 149,554,800 16,372,300 10,900,000 40,480,300 3,435,300 1,944,900 3,919,200 4,004,400 3,226,600 5,528,000 7,060,000 2,390,000 768,000 814,700 564,400 17,713,000 4,300,400 2,933,800 10,199,200 60,011,300 5,500,000 3,536,900 2,208,600 3,741,800 11,061,000 846,300 12,502,800 577,500 14,739,400 SENSEX Company Name Zee Entertainment Enterprise Wipro Ltd Ultratech Cement Ltd Tech Mahindra Ltd Tata Steel Ltd Tata Power Co Ltd Tata Motors Ltd Tata Consultancy Svcs Ltd Sun Pharmaceutical Indus State Bank Of India Sesa Sterlite Ltd Reliance Industries Ltd Punjab National Bank Power Grid Corp Of India Ltd Oil & Natural Gas Corp Ltd Ntpc Ltd Nmdc Ltd Maruti Suzuki India Ltd Mahindra & Mahindra Ltd Lupin Ltd Larsen & Toubro Ltd Kotak Mahindra Bank Ltd Jindal Steel & Power Ltd Itc Ltd Infosys Ltd Indusind Bank Ltd Idfc Ltd Icici Bank Ltd Housing Development Finance Hindustan Unilever Ltd Hindalco Industries Ltd Hero Motocorp Ltd Hdfc Bank Limited Hcl Technologies Ltd Grasim Industries Ltd Gail India Ltd Dr. Reddy’s Laboratories Dlf Ltd Coal India Ltd Cipla Ltd Cairn India Ltd Bharti Airtel Ltd Bharat Petroleum Corp Ltd Bharat Heavy Electricals Bank Of Baroda Bajaj Auto Ltd Axis Bank Ltd Asian Paints Ltd Ambuja Cements Ltd Acc Ltd Lt Price 376.75 606.55 3,140.35 2,868.50 390.45 90.50 585.15 2,482.05 917.75 308.95 201.95 915.25 189.65 148.00 351.35 143.65 141.50 3,647.35 1,265.10 1,585.30 1,700.55 1,322.20 158.65 368.55 2,141.90 870.20 172.05 360.70 1,262.50 932.55 139.70 2,865.50 1,077.35 1,791.75 3,884.05 423.00 3,233.25 169.90 360.85 695.75 232.85 373.70 748.85 291.75 193.15 2,391.70 588.10 857.75 248.75 1,560.45 % Chg -2.41 0.64 -0.71 -1.24 0.01 2.67 -2.25 -2.46 -0.22 -5.52 0.25 -1.52 -4.75 -0.54 -0.16 1.27 0.96 -1.12 -2.44 1.98 -1.35 -0.69 0.79 -0.45 -0.17 -0.67 0.85 -5.15 -4.03 -0.96 -1.90 -0.38 -1.61 8.66 -1.22 -0.02 -3.87 1.95 -3.76 -0.24 -0.79 -0.56 2.04 1.34 -11.05 -0.54 -1.90 -2.67 -2.81 -1.42 Volume 1,960,137 1,855,737 178,930 1,244,277 4,176,948 5,383,266 4,524,385 3,059,475 1,982,800 33,513,118 6,202,266 5,213,006 13,178,432 2,113,088 4,375,567 20,528,837 4,047,782 314,933 901,546 769,239 1,737,673 1,454,635 4,538,787 9,545,974 2,950,289 957,461 20,735,439 30,635,114 4,057,663 1,647,445 8,823,642 473,857 2,856,405 5,657,577 116,612 1,175,075 690,525 13,335,697 16,107,319 1,202,410 2,966,555 5,043,724 2,657,673 6,624,985 30,570,222 275,989 5,115,168 3,582,395 2,660,442 404,243 Brokers work on their screens at the stock exchange in Frankfurt. The DAX 30 index yesterday shed 0.41% to 10,694.32 points. Europe stock markets close down as deflation fears bite AFP London E uropean stock markets closed down yesterday, as deflation worries deepened for the eurozone, which was locked in crucial talks with Greece over a possible restructuring of debt. London’s benchmark FTSE 100 index ended the week down 0.90% at 6,749.40 points. Frankfurt’s DAX 30 index shed 0.41% to 10,694.32 points, and in Paris the CAC 40 fell 0.59% to 4,604.25 points. Eurozone consumer prices fell by a record 0.6% in January, confirming deflation could be taking hold for the long term, EU data showed. The drop from minus 0.2% in December appears to back the European Central Bank’s decision last week to launch a bond-buying spree to drive up prices. Plummeting world oil prices were largely to blame for the fall in the 19-country eurozone, already beset by weak economic growth and high unemployment, the EU’s data agency Eurostat said. “Big news out of the eurozone... as falling energy prices continue to keep the economic storm clouds hovering,” said Daniel Sugarman, market strategist at ETX Capital trading group. The minus 0.6 inflation rate matches the same record drop in prices the eurozone set in July 2009 at the worst of the global financial crisis. Official data on Thursday showed that inflation in Germany, Europe’s biggest economy, dipped into negative territory in January for the first time in five years. Investors were also watching with concern the eurozone’s negotiations with Greece, where the head of the Eurogroup Jeroen Dijsselbloem warned the anti-austerity government against reneging on reforms tied to a €240bn ($269bn) bailout. The two sides appeared headed for a clash as eurozone member Portugal — which had doggedly carried out all the HONG KONG HONG KONG Company Name Aluminum Corp Of China Ltd-H Bank Of East Asia Bank Of China Ltd-H Bank Of Communications Co-H Belle International Holdings Boc Hong Kong Holdings Ltd Cathay Pacific Airways Cheung Kong Holdings Ltd China Coal Energy Co-H China Construction Bank-H China Life Insurance Co-H China Merchants Hldgs Intl China Mobile Ltd China Overseas Land & Invest China Petroleum & Chemical-H China Resources Enterprise China Resources Land Ltd China Resources Power Holdin China Shenhua Energy Co-H China Unicom Hong Kong Ltd Citic Ltd Clp Holdings Ltd Cnooc Ltd Cosco Pacific Ltd Esprit Holdings Ltd Fih Mobile Ltd Hang Lung Properties Ltd Hang Seng Bank Ltd Henderson Land Development reforms required under its rescue programme — said it would not accept any debt renegotiation for Greece. European markets did not get any support from across the Atlantic, where US stocks were mostly trading down. The Dow Jones Industrial Average shed 0.18%, while the broad-based S&P 500 fell 0.30%. The euro weakened to $1.1296 from $1.1317 late in New York on Thursday. On the corporate front, shares in IAG, parent of British Airways and Spanish carrier Iberia, fell 3.46% to 544.50 pence after Qatar Airways said it had purchased almost 10% of the group. The move represents something of a change for Qatar Airways, as its chief executive Akbar al-Baker has publicly criticised European carriers, saying earlier this month that they “cannot keep up” with competition from Gulf carriers. IAG, meanwhile, is hoping to buy Irish airline Aer Lingus, which this week backed a €1.35bn ($1.53bn) takeover bid. Lt Price 3.56 32.20 4.34 6.52 8.79 27.25 18.10 148.50 4.27 6.23 30.60 28.55 102.50 22.45 6.13 17.00 19.88 21.90 21.25 11.72 13.32 69.20 10.18 11.26 8.75 3.46 22.85 135.80 55.40 % Chg -1.66 -0.16 -0.23 1.09 -0.57 2.06 0.56 2.13 0.71 -0.32 -0.49 0.00 -1.73 -1.97 -0.65 -2.30 -1.58 0.23 0.47 -0.17 -0.30 -0.43 -0.20 0.00 0.00 -2.54 0.44 -0.07 -0.18 Volume 15,446,000 1,572,177 278,776,672 34,097,115 8,538,461 40,159,528 5,707,346 9,326,251 22,369,284 212,098,877 27,581,382 4,778,504 14,413,840 35,557,982 60,633,706 5,740,000 7,666,356 6,157,259 13,833,487 18,420,558 6,709,733 2,270,844 70,206,062 4,614,292 3,254,046 9,025,224 7,200,576 2,152,439 5,169,311 Company Name Hong Kong & China Gas Hong Kong Exchanges & Clear Hsbc Holdings Plc Hutchison Whampoa Ltd Ind & Comm Bk Of China-H Li & Fung Ltd Mtr Corp New World Development Petrochina Co Ltd-H Ping An Insurance Group Co-H Power Assets Holdings Ltd Sino Land Co Sun Hung Kai Properties Swire Pacific Ltd-A Tencent Holdings Ltd Wharf Holdings Ltd Lt Price 17.80 178.60 72.45 102.90 5.58 7.69 34.45 9.26 8.39 82.60 81.30 13.00 126.60 104.10 132.00 63.00 % Chg -0.45 0.17 0.21 0.98 -0.36 1.05 -0.43 1.54 -0.36 -0.42 -1.16 -0.61 -1.25 -0.29 -1.93 0.48 Volume 8,147,033 3,995,925 11,676,459 7,486,717 207,769,546 21,046,060 3,300,500 39,243,974 70,878,729 17,117,876 2,697,877 8,973,514 5,885,428 1,525,748 29,375,696 5,692,506 GCC INDICES Indices Doha Securities Market Saudi Tadawul Kuwait Stocks Exchange Bahrain Stock Exchage Oman Stock Market Abudhabi Stock Market Dubai Financial Market Lt Price 11,899.63 8,878.54 6,572.26 1,424.37 6,558.46 4,456.82 3,674.40 Change -81.03 -33.96 -64.33 +0.36 -25.61 -59.30 -61.90 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended as an offer or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on this data.” CURRENCIES DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI DINAR KUWAITI DINAR Gulf Times Saturday, January 31, 2015 5 BUSINESS/LEISURE Adam HBO tech executives leave ahead of Internet launch as network’s strategy changes Reuters New York T ime Warner’s HBO is preparing to sell a standalone service over the Internet for the first time, in one of the most closely watched moves in pay TV history. Yet the road to the launch has been far from an easy one — marked by changes in strategy, deadlines, and the departure of its chief technology officer along with two of his lieutenants. Otto Berkes, who was previously a Microsoft executive, resigned from the CTO position in December, only a matter of months before HBO is expected to start selling the new product, and two senior vicepresidents on the technology team, Mark Thomas and Drew Angeloff, are also leaving, sources familiar with the situation said. The original plan discussed by the network’s top executives was to spend hundreds of millions of dollars to develop a sophisticated streaming platform that would make HBO, one of the best-known premium channels in the US, capable of challenging streaming video services from Netflix and Amazon head on. Berkes, who was also a cofounder of Xbox, was a key part of that ambitious project — he had been hired by HBO in 2011 to set up a new office in Seattle, initially hiring 80 engineers with plans to grow much bigger. The idea was that the technology would not only support HBO but potentially other Time Warner offerings, such as Turner Broadcasting and Warner Bros. The platform, which would power a product that doesn’t require a cable subscription, would be used globally and was supposed to be ready in 2016, said the sources, who worked on that effort. But these sources said that much of the plan was changed when Rupert Murdoch’s Twenty-First Century Pooch Cafe Garfield Bound And Gagged Mall Cinema (1): Song Of The Sea (2D) 2.30pm; Wild Card (2D) 4.15 & 9.30pm; Darker Than Night (2D) 6 & 11.15pm; Robot Overlords (2D) 7.45pm. Mall Cinema (2): The Book Of Life (2D) 2.15pm; Black Hat (2D) 4pm; Black Sea (2D) 6.15pm; Nagara Varidhi Naduvil Njan (Malayalam) 8.15pm; Baby (Hindi) 10.30pm. Mall Cinema (3): American Sniper (2D) 2.45pm; Robot Overlords (2D) 5pm; Selma (2D) 6.45pm; Black Hat (2D) 9pm; Black Sea (2D) 11.15pm. Cinema Land Mark (1): Song Of Cryptic Clues Sudoku Sudoku is a puzzle based on a 9x9 grid. The grid is also divided into nine (3x3) boxes. You are given a selection of values and to complete the puzzle, you must fill the grid so that every column, every row and every 3x3 box contains the digits 1 to 9 and none is repeated. Weekly’s Solutions ACROSS 1 Secret societies hold the charge back (4) 3. Keeps saying troublesome priests need direction (8) 8. One who’s entitled to praise, we hear (4) 9. A North African is producing this shrub (8) 11. Describes the background to dramatic events (4,3,5) 13. Stick the head is upset about! (6) 14. It’s easy to find in the herb garden (6) 17. The results of a party game (12) 20. It’s not stiff and starchy to enlighten a learner (8) 21 and 23Ac. Unable to take flight (8) 22. Some retreating into the stronghold nearer the front than anything else (8) 23. See 21 Across. Fox made a surprise takeover bid for Time Warner last summer. To justify to shareholders why they shouldn’t consider the Australian-born media tycoon’s overtures, Time Warner said that its own strategic plan would deliver more value to shareholders than Murdoch could. In October, at its first investor day in four years, Time Warner outlined a series of measures aimed at bolstering revenue growth and cutting costs. Among those was an announcement by HBO’s CEO Richard Plepler that the standalone HBO was going to launch in 2015, news that quickly became the main headline from the event. “Time Warner needed to show investors that they had a plan that the Murdoch bid was not factoring in,” said Michael Nathanson, a media analyst at MoffettNathanson research. At the time, HBO also decided to cancel the internal technology investment, and to use a third party to provide the new HBO service, a move in sync with a cost efficiency plan driven by Time Warner’s Chief Financial Officer Howard Averill. The more ambitious platform was going to eat up too many dollars and be too slow to come to market, sources familiar with Time Warner’s thinking said. The sources said the decision to speed up the standalone product was not related to the battle with Murdoch. They said this year was viewed as simply the right time for the initiative given that rival media companies were starting to debut online offerings outside of a traditional cable subscription. Dish Network is launching its own $20 per month Internet service later this month and CBS has said that its Showtime network, the biggest direct competitor to HBO, will sell its own separate offering later this year. Shortly after the October announcement, HBO told its engineering team about the decision to cancel plans to develop its own technology platform. Instead of being developed internally, technology would be handled by MLB Advanced Media, a subsidiary of Major League Baseball best known for powering the technology that streams live baseball games. Going with this vendor would save millions, one of the sources close to Time Warner said. A person who had worked on the earlier HBO strategy said that pulling back from building its own platform may come back to haunt the network. “HBO and Time Warner lost the appetite for the investment required to go big here,” the person said. “Old media lost its nerve.” The people who worked on the earlier effort say there are drawbacks to having a third-party handle distribution of the product, including having less control over how subscribers experience it. They say HBO could be missing out on the long-term potential of owning all of the software behind the standalone service. An HBO spokesman, in a statement, said “any business strategy undergoes many iterations,” and that it was confident in its decision. “We believe we landed in exactly the right place with MLB Advanced Media as our partner, and we will deliver a great product later this year that fully lives up to the reputation of the HBO brand,” he said. Among the casualties of the decision was Berkes. He left amid tensions with HBO management over his role following the change in strategy, the people who worked on the effort said. Thomas and Angeloff are leaving for similar reasons, these people said. The 80 or so employees in Seattle still have jobs but HBO is without a CTO and has no immediate plans to hire a new one. (2D) 9.30pm; Wild Card (2D) 11.30pm. Royal Plaza Cinema Palace (1): Song OF The Sea (2D) 2.30; Robot The Sea (2D) 2.15pm; Selma (2D) 4pm; Black Sea (2D) 6.15pm; Black Overlords (2D) 4 & 7.30pm; Wild Card (2D) 5.45 & 11.30pm; Black Hat (2D) 8.15pm; Hawaizaada Hat (2D) 9.15pm. (Hindi) 10.30pm. Cinema Land Mark (2): Seventh Royal Plaza Cinema Palace (2): Dolly Ki Doli (Hindi) 2.30pm; Black Son (2D) 3pm; Robot Overlords (2D) 5pm; Darker than Night (2D) Hat (2D) 4.30pm; Selma (2D) 6.45pm; American Sniper (2D) 7 & 11pm; Robot Overlords (2D) 9pm; Black Hat (2D) 11.15pm. 9.00pm. Royal Plaza Cinema Palace (3): Cinema Land Mark (3): The Book Of Life (2D) 3pm; Song Hawaizaada (Hindi) 2.15pm; Of The Sea (2D) 5pm; Darker Than Black Hat (2D) 5pm; Nagara Night (2D) 7 & 11.15pm; Black Sea Varidhi Naduvil Njan (2D) 9pm. (Malayalam) 7.15pm; Black Sea Quick Clues DOWN 1. Large depreciation in fuel (8) 2. See 10 Down 4. One by one (6) 5. Generous underwriter? (10) 6. Back in the liner I spotted a fascinating female (5) 7. Among the decorations a showy piece of regalia (4) 10 and 2Dn. What the unhandicapped beginner does (6,4,7) 12. In the confusion wise communications are required (8) 15. To cram a wafer, maybe, with cold, solid mass (4-3) 16. Has the same value as peers (6) 18. Indicate one’s willingness to remove the top from the moneybox (5) 19. A quarrel is apt to arise loudly (4) ACROSS 1. Assert (4) 3. Buy (8) 8. Change (4) 9. Enthusiasm (8) 11. Proportionate (12) 13. Middle (6) 14. Guidance (6) 17. Building (12) 20. Submissive (8) 21. Masculine (4) 22. Regularity (8) 23. Magnifier (4) DOWN 1. Support (8) 2. Rower (7) 4. Restless (6) 5. Gainsay (10) 6. Prevent (5) 7. Orient (4) 10. Tyranny (10) 12. Parsimony (8) 15. Copy (7) 16. Beverages (6) 18. Fat (5) 19. Tree trunk (4) Weekly’s Solutions QUICK Across: 1 Countenance; 9 Isthmus; 10 Owner; 11 Canon; 12 Element; 13 Mapped; 15 Candle; 18 Parable; 20 Match; 22 Canoe; 23 Tornado; 24 Trustworthy. Down: 2 Often; 3 Nominee; 4 Ensued; 5 Adobe; 6 Contend; 7 Circumspect; 8 Brotherhood; 14 Partner; 16 Admirer; 17 Bestow; 19 Bless; 21 Teach. CRYPTIC Across: 1 Close second; 9 On trial; 10 Blush; 11 Range; 12 Chagrin; 13 Obtuse; 15 Bellow; 18 Kindred; 20 Hello; 22 Urban; 23 Sackful; 24 Less and less. Down: 2 Let in; 3 Shivers; 4 Solace; 5 Cobra; 6 Neutral; 7 Poor look-out; 8 The New World; 14 Tenable; 16 Ethical; 17 Oddson; 19 Ranks; 21 Lifts. Gulf Times Saturday, January 31, 2015 7 BUSINESS Overseas investors see London home prices drop as they buy Bloomberg London O verseas investors are buying new tower apartments in London’s Battersea Park district just as existing home values there begin to fall. The area, which includes the Nine Elms neighbourhood, was the worst performer in “emerging prime” London last year, broker Douglas & Gordon Ltd said. Existing home values in Battersea Park, which includes the area around Battersea Power Station and the new US embassy, fell 2% after they led gains in 2013. That compares with an average increase of 5.4% in the 10 districts of London that the broker classes as emerging upscale neighbourhoods because wealthy English people priced out of central London typically buy there. Central London’s six-year property rally is waning as prices deter even the rich. In areas where luxury homes are increasing along the River Thames such as Battersea, foreign investors continue to snap up apartments in high-profile developments marketed extensively abroad even as the value of existing homes begin to dip and signs grow of an oversupply of homes to rent. “I do have big concerns about new buyers attempting quick re-sales as the re-sale will almost certainly be at a discount to purchase cost,” Michael Lister, a lecturer at the University of Westminster and a former head of UK property lending at Bank of Ireland Plc, said by e-mail. “If such sales were to lead to bad press, this ought to have the impact of forcing developer prices down.” The new homes were acquired by overseas and UK buyers before or during construction, meaning many are only being completed now and others have yet to be built. That’s led to concern about an oversupply in the rental market. “The pool of buyers may extend to the whole of China, but the pool of tenants is pretty static,” Property Vision Ltd, a broker that advises prime A Park Lane street sign sits on the wall of a Foxtons Ltd estate agents in the Westminster district in London. The new homes were acquired by overseas and UK buyers before or during construction, meaning many are only being completed now and others have yet to be built. That has led to concern about an oversupply in the rental market. homebuyers, wrote in a January 26 report. “When this supply comes on, most of it is going to be surrounded by building sites and tenants are only going to be tempted by a real steal. If you take the Battersea Power Station site, for example, the sound of jackhammers is going to be ringing in the ears for many years.” A spokeswoman for Battersea Power Station Development Co declined to comment. The volume of apartments under construction may have a short-term impact on rents when they are offered to lease in the next two to three years, Ed Mead, executive director at Douglas & Gordon, said by phone. For now, existing apartments still outperformed house prices in Battersea Park last year and the district was the best performer in 2013, Andrew Monteath, head of research at Douglas & Gordon’s asset-management unit, said by phone. Even so, the premium charged for new homes in London is eroding amid a surge in building. Average sale prices of new apartments in London’s most expensive districts exceeded those of older flats by 43% at the end of the first quarter in 2014, down from 68% in 2012, according to a September report by Londonbased broker Huntly Hooper Ltd. The gap may have narrowed further since then, Oliver Hooper, director of Huntly Hooper, said in an interview. In Battersea, new properties can sell for more than £2,000 ($3,000) a square foot, though the average is about £1,400, according to Londonbased broker Chestertons. That compares with £800 to £1,000 for existing homes, the broker said. Buyers of homes in the district also face higher stamp-duty sales taxes after Chancellor of the Exchequer George Osborne increased the levy for the most expensive homes in December. A four-bedroom home at Battersea Power Station priced at £3.2mn now has a levy of £297,750, an increase of about £74,000. Overseas demand for prime London homes is cooling, and some upscale projects being marketed “have gone over to Asia and probably haven’t done as well as they would have” in early 2014, Jack Simmons, head of UK residential development and investment at broker Cushman & Wakefield Inc, said by e-mail. The homes under construction along the River Thames have transformed a previously industrial district. The sale of apartments at St George Wharf tower helped raise the average value of a home in the borough of Lambeth by 40% in April from a year earlier, according to researcher Acadata Ltd. That was the biggest gain for any borough. Some developers are now refocusing on homes locals can afford, rather than luxury properties that appeal to wealthy overseas buyers, Simmons said. “We are targeting areas outside of prime central London where the right property, at the right price and in the right location will be highly sought after by domestic purchasers,” said Jon Di-Stefano, chief executive officer of developer Telford Homes, which focuses on building in north and east London. Others say the investment in infrastructure in Battersea and the surrounding area could reverse the dip in home values. “The longer-term outlook is positive with all of the regeneration going on, on the back of the American embassy, the Northern Line extension and its surrounding area,” Robert Bartlett, CEO of Chestertons, said by phone. “That whole part of London is going to be becoming more and more gentrified.” Prices in emerging prime London fell 2% in the final quarter of 2014, according to Douglas & Gordon, which compiled the index for the first time. The best-performing district there last year was East Putney, where values rose 19%, according to the report. Traditionally, “it wasn’t considered as groovy as Battersea,” Mead said. “The growth last year for flats was about 30%.” The other districts included in Douglas & Gordon’s new index are Hammersmith and Shepherd’s Bush, Pimlico and Westminster, West Putney, Fulham, Battersea, Clapham, Southfields and Earlsfield and Balham. 8 Gulf Times Saturday, January 31, 2015 BUSINESS China’s regulator to punish 5 fund firms Reuters Beijing China’s securities regulator said yesterday it will punish five fund management companies for faulty internal controls that led to insider trading, another move in a Beijing’s widening crackdown on Chinese brokerages and fund managers. The China Securities Regulatory Commission (CSRC) named only two of the five: China Asset Management Co Ltd and HFT Investment Management Co Ltd, a joint venture between Haitong Securities Co Ltd and BNP Paribas Investment Partners BE Holding. Individuals responsible for the insider trading have already been turned over to the police for investigation, the CSRC said previously. A China Asset Management employee told Reuters, when contacted by telephone, “We attach great importance to the regulatory measures and are actively implementing corrective measures to our control systems in accordance with the requirements.” HFT declined to comment. The regulator said the five companies will be suspended from issuing new mutual fund products for three to six months. Earlier this month, China meted out similar punishments to the country’s three largest brokerages for allegedly violating regulations governing the issuance of margin trading accounts. This week, the regulator launched a fresh investigation into other brokerages, people with direct knowledge of the matter told Reuters. It has also intensified investigations into share sales by corporate insiders during valuation spikes. At issue are concerns that China’s stock rally – one of the few bright spots in its financial markets in recent months – could be exploited by unscrupulous insider trading and distorted by excessive use of leverage, which would amplify damage if markets crash. The CSRC has also warned six other companies to adjust their behaviour, without punishing them, the regulator said. Zhang Xiaojun, a spokesman for the China Securities Regulatory Commission, made the announcement at a weekly news conference. India’s biggest asset sale to raise $3.6bn lures investors Bloomberg Mumbai I ndia’s biggest asset sale to help raise at least $3.6bn selling shares of Coal India got a boost as the offer was fully subscribed by investors. Bidding reached 662mn shares for the 631.6mn on offer, or 10% of the government’s stake that included the greenshoe option, according to data provided by BSE. The government had set a minimum price of Rs358 a share for the planned sale of 5% of its stake, with an option to sell an additional 5%. The success at yesterday’s sale may provide a fillip to the government’s flagging programme to raise money from such offerings. Falling oil prices and proceeds from the sale will help Prime Minister Narendra Modi meet his target to cut a budget shortfall to the lowest in seven years. “It’s a monopoly business and will benefit from the Modi government’s focus on the power sector,” said Paras Bothra, vice president of equity research at Ashika Stock Broking in Mumbai. “It’s a good bet for the institutional investors.” The 10% sale in Coal India will potentially make it the nation’s biggest public offering, according to data compiled by Bloomberg. In the current financial year ending March 31, counting out yesterday’s Coal India auction, the government had managed to meet only 3% of its goal of raising Rs584bn ($9.4bn) from its asset sale programme. It has missed its targets every year since fiscal 2011. Prior to the sale, the government owned 89.65% in the monopoly miner. Individual investors, who got a 5% discount to the minimum bid price, bid for less than half of the shares offered to them. The 10% share sale in Coal India will potentially make it the nation’s biggest public offering. “Retail investors may not have the patience to hold the stock for three to five years,” Bothra said. “In a bull market there are many options in the mid- cap space for them to invest.” Coal India shares fell 3.8% to Rs360.85 in Mumbai yesterday. The stock has declined 5.9% this month, compared with a 6.1% gain T he strengthening dollar and Swiss franc are upending the most popular trading strategy in the $5.3tn- a-day foreignexchange market. A Credit Suisse Group AG index that tracks returns from so-called carry trades, where investors borrow in nations with low interest rates such as the US and Switzerland and invest the proceeds where they are higher, has tumbled 6.6% this month, the most in six years. The trade can quickly go awry if the funding currency appreciates, making it more expensive to pay back the loans. With the dollar and franc both soaring, firms from Aberdeen Asset Management to Goldman Sachs Group are changing tack, turning to currencies such as the euro and yen to buy India’s rupee, Turkey’s lira or Mexico’s peso. That may breathe new life into emerging-market currencies even as they languish at a 12year low against the dollar. “You can still make money in carry trades, but you have to be selective,” Viktor Szabo, who oversees $12bn of developing-nation debt at Aberdeen in London, said Thursday by phone. Declines in developing nations’ currencies are “not about emerging-market weakness, but Group AG, Deutsche Bank AG, Goldman Sachs Group Inc, JM Financial, Kotak Mahindra Bank and SBI Capital Markets were managers to the sale. Thai central bank indexes show economy struggling Reuters Bangkok T hailand’s private consumption contracted in December and investment stalled, the latest evidence that the country’s growth engines remain shaky and the economy is not back on track. Taken together with weak output and import figures released during the week, the data show the military junta was unable to make much headway in reviving the economy even after seizing power in May to end months of paralysing political unrest. The junta has pledged to ramp up infrastructure this year, but economists say the full benefits of such projects may only start to be felt late in 2015, while years of political uncertainty could be eroding the country’s competitiveness. The central bank said yesterday its index of private consumption, which accounts for half of the economy, fell 0.7% in December. The last time it rose was in September. An index of private investment gained 0.1% from November, a month in which it climbed a revised 2.2%. “Despite lower cost of living and production cost benefits from falling oil prices, private spending softened as consumers remained cautious and businesses awaited economic recovery and clarity on government’s infrastructure investment,” the Bank of Thailand (BOT) said in a statement. Noting that recovery remained “slow” and consumption declined, it said “benefits from lower global oil prices have not passed on to private consumption as households remained cautious in spending given elevated debt levels and low farm prices.” Although the army coup restored some confidence, efforts to get the economy growing have been stymied as exports remain sluggish, domestic demand is still subdued and government spending has not risen sharply. “The economy has shown a recovery, but at a very slow pace,” said Thammarat Kittisiripat, economist with TMB Bank in Bangkok. Southeast Asia’s second-largest Emerging markets keep allure, though not to dollar Bloomberg London in the benchmark S&P BSE Sensex, the world’s best performer this year in dollar terms. Bank of America Corp, Credit Suisse dollar strength.” The dollar has effectively priced itself out of funding carry trades by strengthening against all its major peers in the past six months as the US prepares to raise interest rates. At the same time, the euro, yen and Swedish krona are becoming more viable as their central banks debase the currencies as part of efforts to stimulate their economies. The Indian rupee and the Turkish lira are popular buys right now because their nations are net importers of oil, meaning they can benefit from lower crude prices. While the lira has fallen more than 3% against the dollar this month because of rate cuts by the central bank, the rupee is the best performer among 24 emerging-market currencies tracked by Bloomberg, strengthening almost 2% Szabo said he’s buying the rupee, Indonesian rupiah, Mexican peso and Brazilian real in deals funded by currencies including the euro and Hungary’s forint. The carry trade is the most widely used foreign-exchange strategy, according to the Bank for International Settlements in Basel, Switzerland. Yet a benchmark index tracking the deals fell the most since 2008 this month as rising price swings eat into profits. An index of global currency volatility jumped to a 1 1/2-year high this month, threatening returns. Hence the need to be selective. Citigroup, the world’s largest foreign-exchange trader, replaced the Swiss franc for the Swedish krona in one of its carry trades this month after the Alpine nation scrapped its exchange-rate cap, sending its currency to a recordhigh versus the euro.The bank now recommends clients buy the rupee, lira and rupiah by selling the euro and krona. “We continue to hold an emerging-market carry trade,” Citigroup strategists led by Jeremy Hale in London said in a client note on Thursday. “The trade makes sense as it provides diversification to a long-dollar portfolio.” Buying a basket of the rupee, lira, real and South African rand, funded using a mixture of euros, yen, Czech koruna and Taiwanese dollars, would have made 3.9% this month, data compiled by Bloomberg show. Contrast that with the slump in emerging-market currencies versus the dollar. An index of 20 major developing-nation exchange rates fell yesterday to the lowest since October 2002, leaving it just 0.6% from its weakest level since the data began in 1993. The gauge fell 0.64% on January. 26. The rupee and the lira are popular buys right now because their nations are net importers of oil, meaning they can benefit from lower crude prices. While the lira has fallen more than 3% against the dollar this month because of rate cuts by the central bank, the rupee is the best performer among 24 emerging-market currencies tracked by Bloomberg, strengthening almost 2%. On the other side of the deals, surprise policy measures to loosen the money supply of the euro region, Canada and Norway this month made their currencies more appealing for funding carry trades. Canada and Norway both unexpectedly lowered interest rates, while the European Central Bank unveiled a larger-than- anticipated 1.1tn-euro ($1.3tn) quantitativeeasing programme last week, sending its currency to an 11-year low on Jan. 26. The euro was at $1.1314 as of 9:33 am in London, down 6% this year. Euro-funded deals will continue to do well, according to Goldman Sachs, whose strategists recommend using the 19-nation currency to buy rupees, Mexican pesos and lira.“Low yields in developed markets make relatively high yields in emerging economies very interesting,” Alejandro Urbina of Silva Capital Management LLC, which specialises in emerging-market currencies, said from Chicago on January 27. economy grew only 0.2% in the first nine months of 2014, and the government sees growth of less than 1% for the full year. Official data will be released on February 16. Yesterday, the BOT said the economy in October-December grew more than 2% for a year earlier. But the comparison base is low, because the annual pace in the last quarter of 2013 – when antigovernment protests began - was 0.6%. The central bank has forecast the economy will grow 4% this year, counting on government spending and investment, and benefiting from 2014’s low base. The BOT yesterday said exports in December rose 2.3% from a year earlier while imports fell 7.9%. On Tuesday, the Commerce Ministry gave its figures, of a 1.9% gain for exports and an 8.74% fall for imports. The central bank and ministry agree that exports – equal to more than 60% of GDP – fell in 2014. The BOT expects them to rise only 1% this year, due to weak global demand and falling commodity prices. Factory output slipped 4.6% last year, after declining for the 21st straight month in December. The government predicts a 3-4% rise this year. Fears of a resurgence of political tensions resurfaced this month after the country’s junta-appointed assembly impeached the ousted prime minister and banned her from politics for five years, though there have been no reports of fresh confrontations. India seen holding rates steady on Tuesday, analysts expect cut Reuters Bangalore The Reserve Bank of India, having cut interest rates on January 15, is likely to keep them steady at a policy review next week, according to economists in a Reuters poll who said future moves could depend on the government’s annual budget in late February. RBI Governor Raghuram Rajan, who is mandated to set policy independently, signalled after an unscheduled rate cut earlier this month that any further easing would depend on New Delhi’s commitment to rein in spending and implement reforms. “The most important factor ... will be fiscal consolidation by the government, which will be a trigger for the RBI to initiate further rate cuts this year,” said VKVijayakumar, investment strategist at Geojit BNP. A majority of the 46 forecasters in this week’s survey expected the central bank to leave its benchmark repo rate unchanged at 7.75% at its policy review on Tuesday. But around a quarter of them said the bank could follow up January’s rate cut with another 0.25% point reduction to 7.50% in order to support Asia’s third largest economy which has struggled to recover from its slowest phase of growth since since the 1980s. A bout of disinflation around the world has pushed major central banks - from Canada to Denmark to Singapore - to unexpectedly ease policy over the last month. Even in India, where controlling stubbornly high inflation has been one of the biggest challenges policymakers faced, price rises have cooled significantly in recent months as oil and commodity prices slumped. Retail price inflation tumbled to 5% in December, auguring well for the RBI’s chances of achieving its target of 6% by January 2016. Still, rapidly cooling inflation is unlikely to prompt the RBI to slash rates. After leaving it at 8.0% through last year, the bank is expected to cut 100 basis points over the next 1-1/2 years. When asked how much of an influence the budget, due on February 28, would have on the RBI’s next policy move on a scale of one to ten with ten being the highest, the median from 23 economists was seven. Forecasters expect India’s finance minister, Arun Jaitley, to set a deficit target of 3.8% of gross domestic product for fiscal 2015/16, lower than this year’s 4.1% target. Most respondents in the survey, 17 of 23, also said the key theme of Jaitley’s budget would be boosting growth, the remaining chose fiscal consolidation. None said it would focus on populist measures. A slim majority, 12 of 23, also said the government would meet the high expectations for economic reforms raised by Prime Minister Narendra Modi’s election campaign. They predict the government would announce cuts to spending on subsidies, increase levels of foreign investment allowed in the insurance and retail industries, and introduce a nationwide goods and services tax. Markets have also priced in expectations for reforms and India’s benchmark BSE Sensex stock index has regularly hit record highs since Modi took office in May. Gulf Times Saturday, January 31, 2015 9 BUSINESS Japan’s inflation slows on weak consumer spending AFP Tokyo Reuters Beijing/Sanfrancisco J apanese inflation slowed again in December, official data showed yesterday, as weak consumer spending and falling energy prices challenge Tokyo’s war on deflation, hiking pressure on the Bank of Japan to unleash more stimulus. But an uptick in factory output suggests that the world’s number-three economy may be crawling out of recession, analysts said, as the unemployment rate hit a 17-year low. The mixed bag of economic data published yesterday morning showed core consumer inflation slowed for a fifth straight month, while the internal affairs ministry reported that spending among Japanese households fell a greater-than-expected 3.4% from a year ago, as a sales tax hike weighed on shopping nationwide. Inflation is a key measure for Tokyo’s bid to end years of stagnant or falling prices that have been blamed for holding back growth and denting firms’ expansion plans. Prices were on the rise, largely due to Japan’s heavy post-Fukushima energy bills, but oil rates have tumbled in recent months and consumers snapped their wallets shut after the government raised sales taxes to 8% from 5% last year. The economy quickly fell into recession, prompting Prime Minister Shinzo Abe to put off a second sales tax hike this year, which was aimed at taming Japan’s enormous national debt. The figures yesterday showed the inflation rate last month was at 2.5%, down from 2.7% in November. Adjusted for the tax hike, the rate rose just 0.5% from a year earlier, well short of the Bank of Japan’s 2.0% inflation goal which it hopes to reach around the fiscal year ending in April next year. Earlier this month the central bank slashed its inflation outlook as plunging oil prices make the target look increasingly out of reach. The move boosted speculation that the BoJ would have to further expand its already huge monetary easing programme to counter the downturn. “Inflation is still likely to moderate further,” Marcel Thieliant from Capital Economics said in a commentary. D Shoppers walk past an apparel shop in Tokyo. Japanese inflation slowed again in December to 2.5%, down from 2.7% in November, official data showed yesterday. “Less than half of the plunge in the price of crude oil has been passed on to consumers in the form of lower gasoline prices so far.” Japan’s central bank now expects inflation for the fiscal year starting in April to come in at 1%, well down from an earlier 1.7% forecast and the BoJ’s own ambitious target. “The BoJ is expected to go ahead with additional easing in April at the latest,” SMBC Nikko Securities said. “Prices are likely to return to deflation by early spring and it is highly pos- sible that the bank will fail to achieve the fiscal 2015 (inflation) outlook. “If the BoJ leaves that unaddressed, it will be called into question how serious it is about raising prices.” Taking office in late 2012, premier Abe launched a growth blitz dubbed Abenomics, which meshes government spending with massive monetary easing by the central bank and reforms to the highly regulated economy. The plan bore fruit in the beginning, but the more recent slowdown has raised the stakes as the conserva- tive leader struggles to contain Japan’s finances - the country has one of the world’s biggest debt burdens – while dragging the economy out of a yearslong slump. Last month, revised figures showed that Japan’s economy shrank 0.5% in the July-September quarter, marking the second consecutive contraction. Fourth-quarter GDP figures are due on February 16. In some more upbeat news yesterday, industrial production in December rose 1% on-month, slightly below market expectations, but reversing a surprise drop in November. The jobless rate edged down to 3.4% from 3.5% a month earlier, hitting its lowest level since mid-1997. “The rebound in industrial production in December confirms that the economy started to recover last quarter,” said Thieliant from Capital Economics. “The labour market (also) continues to tighten... However, there is no evidence that a tighter labour market has strengthened price pressure.” BoJ likely to hold policy steady until Oct Reuters Tokyo T Kuroda: Watering down two-year time-frame for hitting the BoJ’s inflation target. China’s new tech rules play to local firms’ strengths he Bank of Japan has put monetary policy on hold and found backing for its wait-and-see stance from advisers to Prime Minister Shinzo Abe, who worry more easing could send the yen to damagingly low levels, according to officials in the administration and central bank. This newfound caution from some of the same Abe advisers who urged the BoJ to launch its massive stimulus in 2013, means Japan is set to be an outlier at a time when central banks from Canada to the eurozone to Singapore have shocked markets by easing policy in recent days. Concerns about the yen, along with a belief among central bank officials – including Governor Haruhiko Kuroda – that coming wage increases will support higher prices, suggest the BoJ could hold policy steady until October, months after many economists expect it to be eased. “The environment under which the BoJ is working to hit 2% inflation has changed dramatically. We need to take that into account,” Eco- nomics Minister Akira Amari said on Tuesday. The BoJ stunned markets by expanding its stimulus in October last year to try to prevent slumping oil prices, and a subsequent slowdown in price growth, from causing the central bank to miss its 2% inflation target. But since then, oil prices have fallen by another 50%. Core inflation fell for a fifth month to hit 0.5% in December, data showed on Friday, stoking expectations the BoJ could face pressure to ease again. But Kozo Yamamoto, a leading expert on monetary policy in Abe’s ruling Liberal Democratic Party, said last week that he expected the BoJ could even hold policy steady for the remainder of this year in the absence of some external shock. “What more can the BoJ do? I think the central bank can hold off on action and take a wait-and-see stance for the time being,” Yamamoto told Reuters in an interview last week. The BoJ’s stimulus, dubbed “quantitative and qualitative easing,” or QQE, has been a mainstay of Abe’s progrowth policies known as Abenomics, an attempt to push Japan’s economy out of the slow growth and deflation that characterised the 15 years before Abe took office. Privately, government officials in the Abe administration said the standback and wait comments by Amari and Yamamoto reflect a caution that any further BOJ action could drive the yen lower. That, in turn, could offset the gains to consumer purchasing power from lower prices for imported oil, they said. “Further monetary easing is scary because if the yen weakens more, that could cause problems,” one official said. The dollar has risen 9% against the yen since early October and almost 30% since Abe was elected in December 2012. The weak currency has been a boon to exporters like Toyota Motor but has hurt companies like discount carrier Skymark Airlines, which cited higher costs for its dollar-based aircraft leases as a reason for its bankruptcy filing this week. Kuroda has essentially watered down his two-year time frame for hitting the BoJ’s inflation target, admitting earlier this month that Japan may not see inflation hit 2% until fiscal 2016. Many BoJ officials prefer to stand pat for now on hopes that companies will raise base salaries in trade union wage talks in March. They also expect the economy to rebound solidly from the recession, helping offset the deflationary pressure of falling oil prices. “I think inflation rates may even fall in the short term. But we expect to see price increases accelerating in the second half of next fiscal year,” Kuroda told parliament on Thursday. By October, the statistical impact of oil prices compared to the prior year would have partially washed out of the inflation data. At that time, the central bank will also be issuing new quarterly forecasts for the economy and prices. Some people close to the BoJ’s policymaking said they believed it could stand pat until then. “By sharply cutting its inflation forecast this month, the BoJ bought itself about a year’s worth of time,” said a former BoJ executive who remains in close contact with incumbent officials. The BoJ held policy steady in January even as oil prices continued to fall and forced it to cut its core consumer inflation forecast for next fiscal year to 1%. In the latest survey of economists by the Japan Center for Economic Research, 13 of 25 economists who expect a further BoJ easing see it happening in April or July. raft Chinese government regulation would force technology vendors to meet stringent security tests before they can sell to China’s banks, an acceleration of efforts to curb the country’s reliance on foreign technology that has drawn a sharp response from US business groups. But a translation of the proposed rules viewed by Reuters shows its immediate impact on foreign firms may not be as tough as feared. The draft shows the regulation would initially focus on types of hardware and software where domestic suppliers already have a strong market position compared with their foreign rivals. Western companies say the rules have not yet been formally adopted, and some said they believed Beijing would retreat on some of the most onerous ideas, including demanding that firms’ proprietary source code be reviewable. Chinese leaders are to review the plan next week, US tech industry sources said. On Wednesday, 18 American business groups urged Beijing to postpone rolling out the regulation, which they argued were motivated by protectionism as well as security concerns that intensified in the wake of disclosures of US spying techniques by former National Security Agency contractor Edward Snowden. The guidelines by the Chinese Banking Regulatory Commission were issued on December 26 in a 22-page paper that outlines security criteria that tech products must meet in order to be considered “secure and controllable” for use in the financial sector, according to sources with knowledge of the matter. A translation shows an exhaustive table of equipment it applies to, containing 68 categories of tech products from PC servers to wireless routers to automatic teller machines to air conditioners. Source code powering operating systems, database software, and middleware must be registered with the commission to be considered “secure and controllable,” while only wireless routers that have approved encryption or virtual private networking (VPN) certificates may receive the designation. The document also specified what percentage of new purchases in each product category in 2015 must be considered “secure and controllable”. Every new PC purchased this year, for instance, must carry the designation. The new regulations represent one of China’s most significant steps toward banishing foreign technology, 18 months after Snowden disclosed that US spy agencies planted code in American tech exports to snoop on overseas targets. The banking commission briefed representatives from major banks on the regulation in January, Chinese sources with knowledge of the matter said. In order to meet the criteria, a product will also be judged on its “intellectual property and the level of independence during its development process.” India’s banks say no room to cut lending rates, thwarting RBI easing Reuters Mumbai Only three of India’s 45 commercial banks have cut base lending rates since the Reserve Bank of India’s surprise easing this month, hurting the government’s drive to lift business investment. Bank executives insist they cannot lower loan rates despite the official rate cut because cash conditions are tight, and money markets are little changed since the cut, but RBI insiders see that as more an excuse to protect profit margins. The failure to pass on the January 15 rate cut to businesses and consumers has both diluted the impact of monetary policy and weakened the push by the government to quickly unlock more credit and spur investments as the economy struggles to recover from its slowest growth rates since the 1980s. “We are already providing liquidity higher than what the banking system requires. We do not plan to increase that amount,” said a senior policymaker with knowledge of the RBI’s cash management strategy. “Banks need to manage their assets and liabilities more efficiently,” he added. Bankers say the average funds the RBI provides the market has been steady at around 1tn rupees ($16.2bn) a day since the repurchase (repo) rate was cut by 25 basis points to 7.75%. The RBI manages the amount of liquidity in the market to aid transmission of its rate decisions. The next scheduled policy review is on Tuesday, but analysts do not expect it to ease again at least until after the federal budget at the end of February. “If RBI provided slightly more liquidity than what it is providing now, it will force banks to cut their base lending rates,” said CVR Rajendran, chairman and managing director at state-run Andhra Bank. The rate cut has had little impact in financial markets, suggesting a blockage in policy transmission. The interbank overnight cash rate, a key measure of cash conditions that tends to track the repo rate, has remained around 8% despite the rate cut. Furthermore, 3-month wholesale deposit rates have held near 8.50% and the one-year wholesale deposit rate has risen 10 basis points to 8.60%. Analysts say the RBI will eventually have to inject more funds, although may not as much as lenders want, if it continues easing monetary policy. Bank of America-Merrill Lynch believes the RBI will need to inject around $49bn in new money to the banking system during 2015/16 (April-March) if lenders are to lower lending rates enough to meet the brokerage’s projections for a recovery in credit growth to 17.5% in the next fiscal year. Credit grew at an annual rate of 10.7% in early January, near decade lows, and the government of Narendra Modi’s government has been seeking lower interest rates to help spark a revival in lending to business. Earlier this month, the RBI mandated that lenders change the methodology used to compute the base rate, or the minimum lending rate, in a bid to spur more lending. Banks continue to suffer from deteriorating asset quality, which is pressuring earnings. Bank of Baroda,India’s second-biggest lender by assets, yesterday posted a 69% fall in quarterly profit due to higher provisions for bad loans and a surge in tax expenses. An executive at a state-run bank acknowledged profit was a factor in the reluctance to lower lending rates but said liquidity was a bigger issue. “There is a lot of micro-management of liquidity by RBI. Banks are taking their own time to cut lending rates because we are still not sure about RBI’s liquidity policy,” he said. “Typically banks are faster in raising lending rates than cutting to enjoy fat interest margins.” 10 Gulf Times Saturday, January 31, 2015 BUSINESS Singapore charges FX traders for cheating HSBC and Deutsche Bank Bloomberg Singapore Two former foreign exchange traders from HSBC Holdings and Deutsche Bank were charged in Singapore for allegedly cheating their employers by making false trades. The two men, in unrelated cases, bought and sold about $1.1bn in US dollars in November 2009 using the banks’ accounts to get preferential rates for themselves, according to charge sheets filed on Thursday with a Singapore state court. They allegedly made wrongful gains of about S$370,000 ($274,000). Former HSBC senior dealer Ivan Chng, 46, faces 149 charges for about $870mn of trades to facilitate transactions in his wife’s accounts. He allegedly made a wrongful gain of around S$230,000. Toh Hway Khuan, 49, was charged with 39 counts and made almost $300mn in US dollar trades. The former Deutsche Bank spot trader is accused of unlawfully making about S$140,000. Each charge carries a maximum seven-year jail term and a fine of as much as S$250,000. Chng is no longer an employee of the bank, said Gareth Hewett, a Hong Kongbased HSBC spokesman, declining to comment further. No contact details were available for Chng. Deutsche Bank’s Hong Kongbased spokesman Michael West said Toh’s employment was terminated in 2010 and the bank has been assisting the Commercial Affairs Department in its investigation. Toh’s lawyer Lee Teck Leng didn’t immediately return a call seeking comment. Both Chng and Toh are out on bail and the next hearing is scheduled for February 13, according to the Straits Times, which had earlier reported the cases. Sensex sheds 499 points as bank stocks plummet IANS Mumbai A benchmark index of Indian equities markets closed yesterday’s trade down 499 points or 1.68%, as banking, automobile and consumer durables stocks declined. The markets plunged after scaling a new high of 29,844.16 points in the morning trade session. It surpassed the previous high of 29,786.32 points touched on January 28. The 30-scrip Sensitive Index (Sensex) of the S&P Mumbai Stock Exchange (BSE), which opened at 29,801.60 points, closed at 29,182.95 points, down 498.82 points or 1.68% from the previous day’s close at 29,681.77 points. The Sensex touched a high of 29,844.16 points and a low of 29,070.48 points in the intra-day trade. “Market was impacted with poor data coming from third quarter bank results and fund requirement for divestment. This will continue to impact the market in the near term,” said Vinod Nair, head-fundamental research, Geojit BNP Paribas Financial Services. “But Mid and beta stocks where outperforming the main benchmarks. If this outperformance continues, it will be due to improvement in business confidence.”Heavy selling pressure was observed in banking, automobile, consumer durables, capital goods and metal stocks, while healthy buying took place in realty, information technology (IT) and power sectors. The S&P BSE bankex was down 737.58 points, followed by automobile index which was lower by 245.19 points, consumer durables index declined by 200.93 point, capital goods index decreased by 122.41 points and metal index lost 85.85 points. However, realty index was up 38.55 points, IT index was higher by 22.27 points and power index gained 19.33 points. The wider 50-scrip Nifty of the National Stock Exchange (NSE) closed 143.45 points or 1.60% down at 8,808.90 points. The Nifty had touched a new record high in the morning trade at 8,996.60 points. The major Sensex gainers were Tata Power, up 2.90% at Rs90.55; BHEL, up 1.62% at Rs291.80; NTPC, up 1.37% at Rs143.80; Wipro, up 0.79% at Rs606.30; and Sesa Sterlite, up 0.67% at Rs201.75. Meanwhile, in a volatile trade, the rupee yesterday recovered towards the fag-end to end steady at 61.86 against the American currency at the Interbank Foreign Exchange due to mild selling of dollars by banks and exporters. The rupee yesterday resumed slightly higher at 61.84 per dollar as against the last closing level of 61.86 and firmed up further to 61.70 on initial selling of dollars by exporters. However, the domestic currency failed to maintain initial gains and dropped to 62.03 on month-end dollar demand from importers, mainly oil refiners before ending at yesterday’s closing level of 61.86 per dollar. A view of the Bombay Stock Exchange. The 30-scrip Sensitive Index (Sensex) closed yesterday’s trade down 499 points at 29,182.95 points. Asian markets mixed, Japan shares rise AFP Tokyo A sian stock markets were mixed yesterday, with Tokyo’s main index rising as traders took heart from news employment hit its lowest level since 1997, despite a slowdown in inflation and weak consumer spending. Tokyo’s gains were in line with a broad rally on Wall Street the day before, after the Federal Reserve signalled that growth and jobs in the world’s top economy remained robust and a raft of generally solid US corporate earnings. The benchmark Nikkei-225 index on the Tokyo Stock Exchange rose 0.39%, or 68.17 points, to 17,674.39 at the close, with traders buoyed by a weaker yen, which boosts Japanese exporters. Sydney gained 18.82 points, or 0.34%, to close at 5,588.3 while Seoul finished flat, closing down 1.76 points at 1,949.26. But in mainland China, shares closed the week nearly 4% lower, pressured by concerns about market liquidity and regulatory inspections of margin trading, dealers said. The Shanghai Composite index fell 1.59%, or 51.95 points, to 3,210.36 while Hong Kong declined 0.36%, or 88.8 points, to 24,507.05. Official data released yesterday showed Japan’s consumer inflation slowed for a fifth month in December to 2.5% year-on-year, down from 2.7% in November, on the back of plummeting oil prices and weaker consumer spending. Adjusted for a sales tax increase, the rate rose just 0.5%, well short of the Bank of Japan’s 2% inflation goal. The news stoked fears Tokyo is losing its war on deflation, hiking pressure on the Bank of Japan to unleash more stimulus to combat the potentially damaging downward spiral of prices. But analysts said lower energy costs could boost economic growth in the world’s third-largest economy, which is a net importer of oil. News that Japan’s jobless rate edged down to 3.4%, from 3.5% in November, to its lowest level since mid-1997 and a pickup in industrial output also cheered traders. “Investors feel bullish for Japa- Some investors still upbeat on Alibaba despite revenue miss Reuters New York A libaba Group’s surprise revenue miss sent shares plunging on Thursday, but some investors say their enthusiasm for the Chinese e-commerce giant has not cooled given its long-term potential. “I don’t think it’s even a stumbling block,” said Mark Yusko, head of the $4bn Morgan Creek Capital Management. Alibaba shares fell 8.8% on Thursday to close at $89.81, sending the stock below its September 19 first-day opening price of $92.70, after reporting lower-than-expected revenues for the third quarter. The company’s record $25bn initial public offering was met with great fanfare, attracting big purchases from hedge funds managers eager for exposure to a company frequently referred to as the ‘Amazon of China.’ Shares soared, hitting a high of $120 in November, but the stock has slumped since, losing 25% of its value. Despite the revenue miss and a migration of customers to mobile devices, where margins are typically narrower, investors said the stock remains attractive as a long-term play on China’s burgeoning consumer market. “We’re in this for the long term. We think this is going to be a dominant franchise,” said Yusko. Yusko started buying shares of Alibaba through private purchases well before the company’s offering last September, and has added to that position over time. Hedge funds owned about 4% of Alibaba’s equity - or nearly 100mn shares - as of September 30, with 27 different funds counting it among their top 10 holdings, according to Goldman Sachs data analysing hedge fund filings. But the stock’s strong debut last year - as well as gains in the four months since - may have set expectations too high, said Vince Rivers, senior portfolio manager at JO Chinese online retail giant Alibaba founder Jack Ma smiles as he waits for the trading to open on the floor at the New York Stock Exchange. Alibaba’s surprise revenue miss sent shares plunging on Thursday. Hambro Capital Management for the small/ mid-cap US equity strategy. “It’s not cheap,” he said. “At a relatively high valuation, you’re going to get this kind of reaction.” Alibaba’s forward price-to-earnings ratio fell to 29.7 on Thursday from 32.6 with the stock’s decline, though that valuation makes it still more expensive than auctions site eBay Inc or Chinese rival Baidu Inc. Yusko and Rivers both compared the company to Facebook , another internet giant that similarly struggled to turn its large customer base into financial gains, particularly as many people migrated from desktops and laptops to their mobile phones. Facebook shares struggled for over a year after their 2012 IPO. It now trades at more than double its IPO price of $38 a share. Headed into earnings, options trading in Alibaba was largely dominated by bullish call bets, but bearish put activity was stronger on Thursday. Bets on the shares dropping to $85 by March 20 were among the busiest of the company’s options on Thursday, according to Thomson Reuters data. Alibaba’s mobile monthly active users nearly doubled from the same quarter the previous year to 265mn. Sales through mobile devices, which typically have lower margins, accounted for a bigger slice of total sales than in the previous quarter. “We have to work through that growing pains period of that transition” to mobile, Rivers said. nese stocks today,” Shigetoshi Kamata, general manager of the research department at Tachibana Securities in Tokyo, told Bloomberg News. “Employment has gotten better and the effects from cheaper oil have yet to come.” Benchmark US indices rallied on Thursday after two days of losses, following generally positive corporate earnings, including from Ford Motor and Amazon. Oil prices were mixed in Asian trade – a day after they plunged to their lowest level in nearly six years. US oil stockpiles are at a record high. US benchmark West Texas Intermediate for March delivery was up 12 cents at $44.65 a barrel in afternoon Asian trade, after a volatile session the day before that saw the contract plunge below $44 for the first time since March 2009. Brent crude for March was down 13 cents at $49a barrel. Gold fetched $1,264.49 an ounce, down from $1,265.97 on Thursday. In other markets, Manila rose 0.95%, or 72.61 points, to 7,689.91; Wellington was down 0.27%, or 15.82 points, at 5,743.99; Taipei fell 0.69%, or 64.99 points, to 9,361.91; Bangkok closed down 0.32%, or 5.15 points, to 1,581.25; Singapore closed down 0.81%, or 27.85 points, to 3,391.20; Kuala Lumpur ended largely flat, losing 0.92 points to close at 1,781.26 and Jakarta ended up 0.51%, or 26.67 points, at 5,289.40. Ant Financial plans IPO Bloomberg Beijing Alibaba Group Holding’s finance affiliate, which runs China’s biggest e-commerce payments business, is planning an initial public offering next year, according to people familiar with the matter. Zhejiang Ant Small & Micro Financial Services Group Co has an estimated value of about $50bn, said the people, who asked not to be identified because the discussions are private. Ant Financial is weighing a private placement before going public, and details of the planned fundraising aren’t finalised, the people said. China’s National Social Security Fund has been invited to invest in Ant Financial, another person familiar with the matter said. The $50bn valuation is about twice the minimum threshold required for an Ant Financial IPO, according to Alibaba’s prospectus before its record share sale in September. “By raising funds through an IPO, the company could have more money to develop a variety of online finance products and cater to smaller businesses,” said Wang Weidong, an analyst at Shanghai-based Internet consultant IResearch. The company has the potential to grow beyond a valuation of $50bn, he said. Alibaba Chairman Jack Ma has controlled Ant Financial, including the Alipay payments business, since spinning off the finance operations into a new company in 2011, citing foreign ownership restrictions. Prior to Alibaba’s own record IPO in September, the companies struck a new deal that entitled the e-commerce operator to a share of earnings at Ant Financial, which is moving into new businesses, including money-market funds. Rachel Chan, a Hong Kong-based spokeswoman for Alibaba, declined to comment on behalf of both Alibaba and Ant Financial. The National Social Security Fund didn’t respond to a phone message seeking comment. At $50bn, Ant Financial would rank among the top 10 financial institutions listed in China by market value, according to data compiled by Bloomberg. Alibaba’s September IPO raised $25bn and the stock has surged 32% since then. That helped make Ma, who holds a 7.8% stake in Alibaba, China’s second-richest man with a net worth of $26.3bn, according to the Bloomberg Billionaires Index. His fortune dropped by about $1.4bn on Thursday after Alibaba’s third-quarter revenue of 26.2bn yuan ($4.2 billion) missed analyst estimates. The company’s push into mobile curbed its advertising sales growth, and the number of transactions on its Tmall platform grew at a smaller pace. Alibaba also is embroiled in a dispute with a state regulator, which criticised the company for alleged lax oversight of its websites. Alibaba has a “credibility crisis” fuelled by a failure to crack down on shady merchants, counterfeit goods, bribery and misleading promotions, the Chinese government said on Wednesday. Company Vice Chairman Joseph Tsai denied those allegations Thursday and said the company decided to file a complaint to the regulator. Ma controls the voting rights to Ant Financial, though his holding will be reduced to a percentage not exceeding his Alibaba stake, according to the prospectus. Ant Financial hasn’t hired investment banks, one of the people said. The company is planning an A-share sale in China while not ruling out a dual listing, another person familiar said. Under the terms of last year’s revised agreement, Alibaba is entitled to a payment of at least $9.4bn if Alipay or its parent hold an IPO. Alibaba also gets the perpetual right to 37.5% of the finance arm’s pretax earnings and can buy a stake of about one-third if regulators approve. Employees, including Ma, would own the shares in Ant Financial not held by new investors and Alibaba, amounting to about 40%, the company said in October. The spinoff of Alipay was a point of contention between Ma and key shareholder Yahoo! Inc, which said it wasn’t informed of the sale at the time, and led to the earlier 2011 agreement on compensation. Since then, the business has expanded into money markets and controls more than 579bn yuan in a fund called Yu’E Bao, according to the company’s website. Alipay, which is similar to PayPal, has more than 800 million registered users. Its mobile application has 190mn active users and handles 45mn transactions a day, the company said in October. Gulf Times Saturday, January 31, 2015 11 BUSINESS Russian central bank makes surprise interest rate cut Key rate cut two basis points to 15%; analysts had expected bank to hold; move may reflect political pressure, growth worries; rouble falls after cut Reuters Moscow R ussia’s central bank unexpectedly cut its main interest rate yesterday as fears of recession mount in the country following the fall in global oil prices and Western sanctions over the Ukraine crisis. The bank reduced its one-week minimum auction repo rate by two points to 15%, a little over a month after pushing it up by 6.5 points to 17% after a run on the rouble. The bank had been widely expected not to change the rate. Following the decision, the rouble extended losses to trade as much as 4% down on the day against the dollar, though it later clawed back some of the losses. The move implies a shift in the Bank of Russia’s priorities away from clamping down on rising inflation and supporting the rouble, towards trying to support economic activity, which the bank expects to fall sharply in the coming months. The decision Russian Central Bank governor Elvira Nabiullina speaks in the lower house of Russia’s parliament, the State Duma, in Moscow yesterday. Russia’s central bank cut its main interest rate to 15% from 17% in a move that caught markets by surprise, sending the rouble tumbling. will also fuel speculation that recent changes in the bank’s senior management have shifted the bank towards more dovish monetary policy, possibly under pressure from the Kremlin, banks and business lobbies. “Today’s decision to lower key interest rate by 2 percentage points is intended to balance the goal of curbing inflation and restore economic growth,” the bank’s governor, Elvira Nabiullina, said in an emailed statement after the announcement. She said the rate remained high enough to allow the bank to reach its inflation target in the medium term. President Vladimir Putin, who won popularity by providing Russians with more financial stability after the chaos of the 1990s following the fall of the Soviet Union, did not comment and the Kremlin denies influencing central bank decisions. But Finance Minister Anton Siluanov said he backed the rate cut, and that the central bank had good reason to say the situation on the currency market was under control. “The decision appears to be politically driven, since it is a cut that shows the central bank is worried about the risks to the banking sector. It looks like the central bank’s hand has been forced,” said Nicholas Spiro, managing director of Spiro Sovereign Strategy in London. Earlier this month the bank’s head of monetary policy, Ksenia Yudayeva, an anti-inflation hawk, was replaced by Dmitry Tulin, a central bank veteran seen as more acceptable to bankers, who have called for lower interest rates. The shift in policy may also reflect the realisation that Russia’s economy is heading for a hard landing as low oil prices look set to persist and the conflict in Ukraine has worsened, defying hopes of an early end to Western sanctions. Data released this week showed real wages slumping by 4.7% year-onyear in December and real disposable income slumping by 7.3%, boding ill for economic growth in the months ahead. The bank said it expected gross domestic product to fall by 3.2% in annual terms during the first half of 2015, following growth of 0.6% in 2014. “This tells us they are looking beyond rising inflation in the coming months to try to stimulate economic growth,” said William Jackson, emerging markets economist at Capital Economics in London. “But I don’t think the rate cut will have much impact (on growth). If you look at the stress on the banking sector, capital flight, the real income squeeze and collapse in oil prices, then a recession is inevitable.” Analysts had nevertheless expected the bank to hold rates this month, as the bank had previously said it would cut rates when inflation is on a sustained downward trend. Inflation has instead been shooting up as a result of the slide in the rouble. The bank said that it saw conditions for lower inflation in the medium term, but effectively acknowledged that inflation would stay in double digits throughout this year. It said it expected inflation to fall below 10% in January 2016. Inflation was 13.2% as of January 26, the bank said, up from 11.4% in December. “I see big risks in today’s decision,” said Rosbank economist Evgeny Koshelev. “Now the geopolitical background is unclear and inflation pressure remains quite strong, as well as signals for the outflow of capital... This (rate cut) is probably a reason to sell the rouble more in the short term.” However, Renaissance Capital economist Oleg Kouzmin said he welcomed the move: “It’s good that they are lowering now. This is a sensible step. This will help the economy and allow stability to be preserved.” He added that high interest rates do not especially help the rouble as capital outflows are largely linked to debt repayments. “Will the capital outflow be stronger? Yes, but there will be a weaker rouble and a stronger current account, which means it won’t be necessary to spend more forex reserves.” CORPORATE RESULTS Honda Q3 operating profit skids 22.5% to $1.5bn profit for the holiday shopping quarter as customers swiped their cards more often. The company, whose shares were up 4% in premarket trading yesterday, said worldwide purchase volume increased 12.1% to $858bn in local currency terms during the fourth quarter, while its cross-border volumes rose 19%. “Despite a mixed global economy, we delivered solid results for the quarter and for the full year in 2014,” chief executive Ajay Banga said in a statement. US retail sales rose 5.5% from the day after Thanksgiving through Christmas Eve as demand for women’s apparel, jewellery and casual dining offset sluggish sales of electronics, MasterCard said in December. The company’s net income rose to $801mn, or 69¢ per share, in the quarter ended December 31 from $623mn, or 52¢ per share, a year earlier. Net revenue rose 14% to $2.42bn. AbbVie Japan’s Honda Motor Co sliced 6.5% off its core annual profit forecast as it set aside hundreds of millions of dollars in extra cash to cover an extended car recall to replace potentially faulty air bags made by Takata Corp Reporting its third-quarter earnings fell by nearly a quarter as it soaked up recall costs, Japan’s third-largest automaker said it now expects an operating profit of ¥720bn ($6.1bn) for the year to March 31. It previously forecast ¥770bn, but has set aside an extra ¥50bn to cover what it said were quality-related costs including the Takata air bag recalls. Still, Honda’s Executive vice-president Tetsuo Iwamura said, “We are not seeing a big impact on sales in North America from the air bag issue.” In the three months ended December, Honda said operating profit skidded 22.5% to ¥177.2bn ($1.5bn) from ¥228.57bn in the same period a year earlier. That was below the ¥189.11bn forecast by Thomson Reuters SmartEstimate from a poll of 10 analysts. Honda also said it now expects to sell a total of 4.45mn cars this fiscal year, down from the 4.62mn it previously forecast, as sales in Japan fall short of its original target. With new model launch delays and fierce competition in the domestic small car market, Honda now expects to sell 790,000 cars in Japan this year, 11% below the 890,000 it previously expected. Speaking at a news conference in Tokyo, Honda’s Iwamura said the impact of lower sales on its earnings will be cancelled out by the beneficial effect of the weaker yen. The slide in the value of the Japanese currency means sales booked overseas now translate back into more yen. Honda accounts for more than half of the Takatarelated recall of about 25mn vehicles since 2008. Takata’s inflators can explode too forcefully and send metal shards into cars, and have been linked to five deaths, all on Honda’s cars. Honda is paying for the voluntary recall of about 4mn cars in the US alone. But it expects to get those costs back if investigations find Takata at fault, and many analysts say reputational damage from the recalls seems minimal, including in the US, Honda’s most important market. Potentially a bigger near-term concern is cheaper fuel as global oil prices slide, with US sales of light trucks up 10% in 2014 against a 1.8% rise for passenger cars. That’s a red flag for Honda, which excels in cars that have attracted buyers concerned about fuel economy. Caixabank, Popular Spain’s third-biggest lender Caixabank yesterday said it expected earnings from loans to keep rising in 2015, helping profits as its soured debts fall, although it warned the pace of credit growth would remain weak. Barcelona-based Caixabank said its net interest income (NII), a key measure of earnings from loans minus deposit costs, rose 5% in 2014 to €4.155bn ($4.7bn). That was in line with forecasts in a Reuters poll and was helped by falling payouts on deposits. But its lending fell nearly 5% year-on-year, even though credit growth improved in the fourth quarter of 2014, echoing trends observed by peers such as Sabadell. At smaller Banco Popular, which also reported 2014 results yesterday, lending was down 0.5% on the year. Popular said it saw signs of growing demand for credit, though it too warned the Spanish economy still faced headwinds, including from high unemployment. Caixabank, which agreed to buy the Spanish retail business of Britain’s Barclays last year, said it expected NII and earnings from fees to grow between 7 and 9% in 2015, even as low interest rates in the eurozone weigh on margins. The bank’s net profit rose 96% to €620mn ($703mn), below the €690.5mn expected in a Reuters poll. Caixabank restated 2013 accounts to reflect payments to the deposit guarantee fund. Without this change, 2014 profit would only have risen 23%. MasterCard MasterCard Inc, the world’s No 2 debit and credit card company, reported a better-than-expected US drugmaker AbbVie’s revenue beat analysts’ estimates for the fourth straight quarter as sales of arthritis drug Humira jumped nearly 11%. The company, however, reported a net loss of $810mn, or 51¢ per share, for the fourth quarter, mainly due to a charge related to its aborted $55bn deal to buy British drugmaker Shire. Excluding the charge and other special items, AbbVie earned 89¢ per share. Analysts on average had expected 86¢ per share, according to Thomson Reuters I/B/E/S. Revenue rose 6.7% to $5.45bn, above the average analyst estimate of $5.36bn. Sales of Humira, which AbbVie inherited from Abbott Laboratories in 2013, rose to $3.36bn in the fourth quarter ended December 31. AbbVie kept its 2015 forecast from January 8 unchanged. The company expects 2015 earnings of $4.25-$4.45 per share, up sharply from last year’s $3.32 per share, citing demand for its all-oral Viekira Pak hepatitis C treatment and growing sales of Humira. Novo Nordisk The world’s biggest insulin maker, Novo Nordisk, yesterday reported a 5% rise in annual profit, driven by sales of the group’s key drug Victoza and modern insulin. Net profit reached 26.48bn kroner (€3.56bn, $4.03bn) as revenue grew six% to 88.8bn kroner, helped by sales of Victoza, which controls blood sugar levels by mimicking an intestinal hormone called GLP-1, and long acting insulin Levemir. The North American market accounted for 61% of growth measured in local currencies, the group — which holds 47% of the global insulin market — said in a statement. Novo Nordisk said sales were expected to grow between six and 9% in local currencies in 2015, reflecting strong performances from Victoza and once-daily insulin Tresiba. The launches of obesity drug Saxenda and Xultophy, which combines Tresiba and Victoza, would result in “modest” growth contributions, it said. Consol Energy Consol Energy Inc said it hired advisers to evaluate a master limited partnership structure for its thermal coal business, as it shifts focus to boosting natural gas production. The company said it expected to invest $1bn in its oil and natural gas business in 2015, compared with the $220mn in its coal business. Consol said production in its natural gas business would likely grow by 30% this year. The company also said an initial public offering of its metallurgical, or steel-making, coal business is likely in the fourth quarter. Coal miners have been weighed down by a switch by US utilities to cheaper natural gas from power-generating coal, and weaker demand from top consumer China for steel-making coal. Consol’s coal business accounts for more than half of its total revenue. Master Limited Partnership (MLPs) have become increasingly popular as they pay no taxes at the federal level and distribute most of their cash flows as dividends to investors. Revenue rose 13% to $935.7mn in the fourth quarter ended December 31, boosted by sales of oil, natural gas, and natural gas liquids. Net income from continuing operations halved to $73.7mn, or 32 cents per share. Exploration and production costs rose nearly 24% to $294.3mn. Consol reported an adjusted profit of 25¢, 5¢ above the average analyst estimate, according to Thomson Reuters I/B/E/S. Google Google profit jumped in the recently ended quarter, but the leap fell short of market expectations as smartphone-centric lifestyles brought with them a shift to cheaper mobile ads. Google has prospered on targeting ads served up with Internet search results on computers. Google is devoting resources to self-driving cars; Glass eyewear; Fiber super-fast Internet networks, and a Project Loon aimed at delivering Internet to remote or rural areas using gear floating from highaltitude balloons. While critics see such endeavours as Google straying from its area of strength in online search, some people view the moves as innovation aimed at keeping the company relevant to evolving lifestyles. Google services such as search and maps could become features in autonomous car consoles or Internet-linked eye wear. More people using faster Internet could increase the ranks of people tapping into the Internet firm’s products from YouTube to Gmail or cloud storage. During an earnings call, Google chief financial officer Patrick Pichette said it stuck to benchmarks when it came to deciding whether to continue backing projects such as Fiber. This month, Google halted sales of its Internetlinked eyewear Glass but insisted the technology would live on in a future consumer product. Glass allowed users to share pictures or video and search the Internet hands free. Google did not indicate when a general consumer version of the eyewear might debut. Google’s Glass team became a separate company unit answering to Tony Fadell, co-founder of Nest. Google bought the smart thermostat maker early last year in a multi billion-dollar deal and brought the former Apple executive on board in the process. The Internet colossus reported net profit up 41% year-over-year at $4.76bn in the final three months of 2014. The profit translates to $6.88 per share, below the consensus forecast of $7.11 per share. Revenues were up 15% in the quarter to $18.1bn, also slower than anticipated as Google saw slowdowns in some of its online advertising metrics such as costs per click. Visa Visa Inc, the world’s largest credit and debit card company, reported a better-than-expected quarterly profit on Thursday as a strengthening US job market and cheaper gasoline prices encouraged people to spend. The company said e-commerce, which mainly uses cards, was “extraordinarily strong during the holiday season.” But chief executive Charlie Scharf said consumer spending on the whole, while at “reasonable” levels, was not accelerating. Shares of the company, which also announced a 4-for-1 split of its class A common stock, rose about 4% in extended trading. Visa, which earns money from both the volume and value of transactions using its cards, said total volume increased to $1.90tn from $1.84tn. The company stands to benefit from China’s recent decision to allow foreign card networks to clear domestic transactions, but Scharf said it remained unclear when the Chinese market would actually open and what the rules would look like. Visa lost its right to process domestic payments in Russia in the middle of last year when Moscow hit back after the imposition of Western sanctions over its role in Ukraine. Visa reaffirmed its revenue and margin forecasts for 2015 after taking into account an expected 2 percentage point negative impact from changes in foreign exchange rates. About 60% of Visa’s transaction volumes are outside the US. Visa, a Dow Jones Industrial Average component, recorded cross-border volume growth of 8% on a constant dollar basis, down from 12% in the yearearlier quarter. The company’s net income rose to $1.57bn, or $2.53 per Class A share, in the quarter ended Dec. 31 from $1.41bn, or $2.20 per Class A share, a year earlier. Analysts on average had expected earnings of $2.49 per share on revenue of $3.34bn for the company’s first fiscal quarter, according to Thomson Reuters I/B/E/S. Total operating revenue rose 7% to $3.38bn. Amazon Amazon.com Inc reported stronger than expected earnings on Thursday as North American sales surged during the crucial holiday quarter, sending its shares up 9%. The online commerce giant, which gets about a third of its revenue from October to December, reported earnings of 45¢ a share, trouncing Wall Street’s average prediction for 17 cents. Revenue climbed 15% to $29.3bn in the quarter, compared to an average analyst estimate of nearly $30bn. However, revenue rose 18% if $895mn in an unfavourable impact from year-over-year changes in foreign exchange rates were excluded, executives said on a conference call. The sharply higher profit was a welcome surprise for Wall Street, which has clamoured for Amazon to come to grips with its growing investments in everything from Hollywood-style television productions, and cloud computing and consumer devices with mixed success. In a conference call with reporters, chief financial officer Tom Szkutak said Amazon is putting “a lot more energy around making sure we get great productivity around our various fixed and variable assets.” Even so, few analysts expect chief executive Officer Jeff Bezos will rein in his spending significantly this year, especially as Amazon beefs up its $99-a-year Prime membership programme, which offers standard two-day shipping, streaming video and unlimited photo storage among other perks. Worldwide, paying Prime membership rose 53% in 2014, and 50% in the US market. In 2014, Amazon paid billions for Prime shipping and put $1.3bn into its Prime video service, Bezos said in a statement. Net sales leapt 22% in North America, compared to 3% for everywhere else. Overall operating expenses rose 14.6% in the quarter to $28.7bn. Net shipping costs represented 4.6% of worldwide net sales, slightly lower than the previous four quarters. Saturday, January 31, 2015 BUSINESS GULF TIMES Southeast Asia’s flag carriers under massive pressure By Arno Maierbrugger Gulf Times Correspondent Bangkok A multitude of factors, including increasing competition from Middle East carriers on long-haul routes, a massive ticket price war as a result of dropping kerosene prices and improving economic dynamics of a growing middle class, is radically changing the aviation market in Southeast Asia. Latest news that Thai Airways will lay off 5,000 staff and cut 10% of its routes is just another sign that the rapid rise of low-cost carriers is challenging established airlines to an extent that starts to become seriously troubling for the latter. Major national airlines in the region, apart from Thai Airways Indonesia’s Garuda, Philippine Airlines, Singapore Airlines, Malaysia Airlines and Vietnam Airlines are either making continued operational losses or just thin profits despite current ultra-low oil prices and cheap refinancing options on the capital market. Most of the national airlines, suffering from state bureaucracy and inert leadership structures, are being overrun by a new generation of budget airlines that are reacting much quicker to market conditions and driving ticket prices down across the region. For example, while Thai Airways had to publicly deny bankruptcy rumours to avoid ticket cancellations and has to deal with unhappy government officials who are no longer entitled to free flights for them and their family, AirAsia, the region’s largest budget airline, used the dropping oil price to announce on January 26 that it will scrap its fuel surcharges across all its carriers, which led to bustling ticket sales. Thailand, which is an especially important destination for budget carriers, has seen the market share of low-cost carriers seen exploding to 44% in terms of passenger movement and 39.7% of entire aircraft movements in 2014, airport operator Airports of Thailand said last week. Moreover, the already impressive number of 24 low-cost carriers operating in Thailand is expected to see more entrants in the budget travel market, further eating into market shares of full service operators. In Indonesia, national carrier Garuda obviously missed out on capitalising early enough on the fact that a 250mn-population spread over 17,000 islands has now more money to travel as a result of improving economic conditions. But Lion Air, a budget carrier launched in 1999 that grew to Indonesia’s largest airline by number of passengers flown and fleet size, did not, which resulted in booming business for the carrier and rapid expansion. Lion Air plans to list at the Jakarta stock exchange this year, and its market valuation is put by analysts at $2bn, double the value of listed Garuda Indonesia. Lion Air has also become known for placing largest-ever single commercial orders for planes from both Boeing and Airbus in both plane makers’ history, at purchase values exceeding $45bn, while Garuda keeps “adjusting” its flight network by cutting international routes. Southeast Asia’s national carriers have also lost the race in fast-growing emerging destinations such as Cambodia, where now low-cost airlines are more or less setting the agenda. Cambodia’s aviation market grew by 13% in 2014, the fastest rate in Southeast Asia, a phenomenon well noticed by regional budget carriers such as JetStar, AirAsia, Vietjet, Cebu Pacific or Silkair which are offering highly affordable regional flights to Phnom Penh and Siem Reap, as opposed to Thai Airways, Malaysia Airlines and Vietnam Airlines which stick to partly exorbitant prices, completely ignoring the growing mass market of travellers. Airbus Military general director Domingo Urena-Raso posing in front of an A400M European military transport plane and an A330 MRTT military Multi Role Tanker Transport plane (left) during a visit at the European Airbus production plant in Blagnac, near the southern city of Toulouse (file). Airbus Defence and Space announced on Thursday the departure of Urena-Raso following delays in the delivery of the A400M plane. Airbus shakes up ‘critical’ A400M army plane project Reuters Paris/Munich A With regards to long-haul flights to Cambodia, Qatar Airways made a wise decision to launch direct daily flights from Doha to Phnom Penh as early as in 2013. It is now the only airline from outside East Asia serving Cambodia directly on a well-booked connection. US economy expands less than forecast in 4th quarter Bloomberg Washington T he economy in the US expanded at a slower pace than forecast in the fourth quarter as cooling business investment, a slump in government outlays and a widening trade gap took some of the lustre off the biggest gain in consumer spending in almost nine years. Gross domestic product grew at a 2.6% annualised rate after a 5% gain in the third quarter that was the fastest since 2003, Commerce Department figures showed Thursday in Washington. The median forecast of 85 economists surveyed by Bloomberg called for a 3% advance. Consumer spending, which accounts for almost 70% of the economy, climbed 4.3%, more than projected. Swept up by the cheapest gasoline in years and the biggest employment increase since 1999, households are gaining the confidence to spend more freely, which will bolster the odds the world’s biggest economy can escape a global slowdown unscathed. Engaged consumers will help ensure that most American employers will look to expand, even as the decline in oil hurts companies such as Caterpillar. “Consumers are feeling pretty good about their wallets and where things are headed, and that means a lot,” Bricklin Dwyer, an economist at BNP Paribas in New York, said before the report. “It’s businesses vs. consumers that is telling the story of what’s happening in the economy, and ultimately we think the consumer side is most important.” GDP estimates in the Bloomberg survey of economists for fourth-quarter GDP, the value of all goods and services produced, ranged from 1.8% to 3.6%. The GDP estimate is the first of three for the quarter, with the other releases scheduled for February and March when more information becomes available. The gain in household consumption was the biggest since the first quarter of 2006 and compared with a 4% median forecast in the Bloomberg survey. It followed a 3.2% advance from July through September. Purchases added 2.9 percentage points to growth. For all of 2014, the US economy grew 2.4% from the year before, the most in four years and following a 2.2% advance in 2013. Consumption climbed 2.5%, the most since 2006. For the fourth quarter, fixed business investment increased at a 2.3% annualized rate, compared with a 7.7% gain in the third quarter. Corporate spending on equipment dropped at a 1.9% pace, the biggest decline since the second quarter of 2009. The trade deficit widened to $471.5bn, as imports climbed three times faster than exports. The gap subtracted 1 percentage point from GDP. A surge in inventories helped make up for some of the shortfall in trade. Stockpiles grew at a $113.1bn rate, an increase of $30.9bn from the third quarter, adding 0.8 percentage point to growth. The GDP report also showed government spending decreased at a 2.2% pace, subtracting 0.4 percentage point to overall growth as defence spending slumped by the most in two years. Federal Reserve policy makers are monitoring economic progress as they weigh their first interest rate increase since 2006. In a statement following a meeting this week, the central bank acknowledged global risks, saying that it will take into account readings on “international de- velopments” as it decides how long to keep rates low. Meanwhile, US “economic activity has been expanding at a solid pace,” the Fed said in the statement as it maintained its pledge to be “patient” on raising interest rates. “Labour market conditions have improved further, with strong job gains and a lower unemployment rate.” Companies and consumers will need more evidence the US economy can sustain its momentum in the face of global headwinds, which include a plunge in commodity prices and the threat of deflation in Europe. The cost of oil had dropped almost 60% since last year’s peak, resulting in a financial windfall for consumers as gas prices also declined. A regular gallon of gasoline cost an average $2.05 as of Jan. 29, hovering near the lowest level since March 2009. That’s being reflected in consumer confidence. The University of Michigan preliminary consumer sentiment index for January rose to an 11-year high while the Conference Board’s measure increasing to the highest level since August 2007. While the gas-fuelled confidence kicks may encourage households to spend more, the decline in oil prices has pinched companies such as Caterpillar. The Peoria, Illinois-based machinery manufacturer said lower oil and gas prices are “without a doubt” the biggest reason it’s expecting sales to decline to $50bn in 2015, Michael DeWalt, Caterpillar’s vice president of finance services, said on a Jan. 27 conference call. The median estimate from analysts’ had projected revenue of $55.2bn. “With oil this low, we expect substantial reductions” in spending by fuel producers, he said. The labour market has yet to show any signs of slowing. Employment grew in 2014 by almost 3mn, the most in any year since 1999, Labor Department data showed this month. Those gains are helping worker pay grow. After-tax personal income adjusted for inflation climbed at a 3.8% annualized rate in the fourth quarter, the most since mid-2013. One reason earnings are growing more quickly is that inflation is tame. The price index tied to consumer spending dropped at a 0.5% rate in the fourth quarter, the most in almost six years. Excluding food and fuel, it rose 1.1%, the smallest gain since the second quarter of 2013. irbus Group shook up the management and organisation of the A400M military transport programme yesterday after the latest in a long series of delays and technical problems to beset Europe’s largest defence project. Chief executive Tom Enders acted two days after apologising in Britain over the problems and promising to draw internal “consequences,” in what appears to be a last-ditch effort to stabilise a programme facing possible new financial charges. As part of the shake-up, the head of Military Aircraft activities, Domingo Urena-Raso, offered to step down from his post and will be replaced by fellow Spaniard Fernando Alonso from March 1, the company said. But production of the aircraft, which has faced quality woes and difficulties in the integration of advanced military features, will be transferred to the defence division’s Operations unit, which is in charge of quality management. In a letter to staff, the overall head of defence and space activities at Europe’s largest aerospace group said the A400M was in a “critical situation” and announced the creation of a new monitoring board under his command. “We apologise to our customers for the delayed deliveries and performance shortfalls. They will be rigorously addressed and we will do our utmost to overcome them,” Bernhard Gerwert said, according to the letter seen by Reuters. Shares in Airbus Group fell around 2% on the latest problems with the huge turboprop plane, which could trigger financial provisions with annual results next month. “Investors have been steeling themselves for A400M charges since at least the third quarter of last year,” said Sash Tusa, aerospace analyst at Edison Investment Research. “This announcement suggests the risk is still on the negative side.” Announcing third-quarter results in November, Airbus said there had been delays in adding tactical features and refuelling on A400M aircraft, some of which would have to be retrofitted. It did not rule out adding to the pile of €4.2bn in provisions over the life of the €20bn project. The incoming head of the Military Aircraft unit, Alonso, 58, currently runs Airbus commercial flight test operations and has worked closely on the A400M, the company said. His predecessor Urena-Raso led negotiations that resulted in a €3.5bn bailout for the A400M project in 2010 from seven Nato nations: Britain, Belgium, France, Germany, Luxembourg, Spain and Turkey. The bailout effectively rescued a project which had run into difficulty over engine problems, but failed to overcome problems of co-ordination and integration, people familiar with the project have said. While struggling to overcome internal problems, Airbus has also been increasingly at odds with Berlin over delays to the A400M as well as a raft of spending cuts and export controls. Airbus insiders say Germany’s insistence on unusually advanced features for a transport carrier, including ground-hugging navigational software more akin to missile technology, were partly driven by a desire to protect domestic high-skilled jobs and ended up hindering the project. Germany has long argued Airbus should meet its promises. Urena-Raso “is a good manager but he was caught between the complexities of the German specifications, Spanish concerns over control, and Airbus in Toulouse who are fundamental to the whole project,” a person familiar with the programme said. Urena-Raso is likely to stay in Europe’s largest aerospace company but the move is a setback for one of its most respected and charismatic executives, who was once seen as a candidate to run the Airbus & Space Division, now headed by Gerwert. One analyst, asking not to be identified, said however that Enders had “missed a chance” to resolve the A400M problems once and for all by uprooting it from Spain, which has had the lead on military transporters since folding its CASA business into a mainly Franco-German merger that created Airbus Group in 2000. QSE WEEKLY REVIEW Bourse gains 1.72% on strong buy interests in insurance, industrial, banking stocks By Santhosh V Perumal Business Reporter The Qatar Stock Exchange appeared resilient to external shocks of weak oil price as it gained 1.72% or more than 200 points during the week. Strong buying interests were visible, especially in the insurance, industrial and banking counters during the week that saw Bank of America Merrill Lynch (BofAML) view that Qatar’s infrastructure pipeline appears most robust; even as prolonged weakened oil price may precipitate the downsizing and consolidation of capital expenditure in the Gulf countries. Foreign institutions were seen instrumental in instilling the bullish momentum to the bourse during the week, which witnessed BofAML aver that every $10 per barrel drop in oil prices shaves 3.4% and 4.2% of gross domestic product off fiscal and current account balances, respectively, in the Gulf Cooperation Council region. Local retail investors continued to be bullish but with lesser intensity during the week that saw weak oil prices have had its debilitating effect on Qatar with its trade surplus shrinking considerably in December in view of sharp decline in exports coupled with robust imports. Crude oil prices have corrected by more than 40% from their highs in 2014 owing to excess supply, driven by higher US shale oil output and a fall in demand because of slowdown in many major economies. Large and mid cap stocks were seen the most sought after in the market, where real estate, banks, industrials and telecom stocks dominated the trading ring with them constituting more than 90% of the total trade volume. Insurance stocks appreciate the most at 3.12%, industrials (2.24%), banks and financial services (2.02%), transport (1.44%), consumer goods (0.35%) and telecom (0.17%); whereas realty fell 0.21% during the week that witnessed Barwa Real Estate inked pact with Arab Engineering Bureau, which will provide consultancy and design services to the expansion project of Barwa Village on Al Wakra Road. The 20-stock Total Return Index rose 1.72%, All Share Index (comprising wider constituents) by 1.58% and Al Rayan Islamic Index by 0.84% during the week that featured QSE asked the country’s corporate sector to more embrace technology through its social media and other avenues to enhance information pass through as part of concerted efforts to instill investor confidence in the financial market. Of the 43 stocks, 25 gained, while 17 declined and one was unchanged. Six of the 12 banks and financial services; six of the nine industrials; five of the eight consumer goods; three of the five insurers; two each of the two telecom and the three transport; and one of the four real estate stocks closed higher during the week. Major gainers included QNB, Industries Qatar, Aamal Company, Gulf International Services, Qatar Insurance, Commercial Bank, Doha Bank, Salam International Investment, Milaha and Gulf Warehousing during the week. However, International Islamic, Alijarah Holding, Dlala, Islamic Holding Group, Qatar Electricity and Water, Mannai Corporation, Doha Insurance, Barwa and Mazaya Qatar bucked the trend. Market capitalisation appended 1.73% or more than QR10bn to QR648.79bn. Foreign institutions turned net buyers to the tune of QR85.09mn against net sellers of QR11.68mn the previous week. Local retail investors’ net buying plummeted to QR22.08mn compared to QR122.62mn the week ended January 22. Domestic institutions’ net profit booking fell to QR97.65mn against QR131.8mn the previous week. Non-Qatari retail investors turned net sellers to the extent of QR9.32mn compared with net buyers of QR21.13mn the week ended January 22. A total of 43.69mn shares valued at QR2.03bn changed hands across 27,118 transactions. The real estate sector saw a total of 14.66mn equities worth QR342.92mn change hands across 4,993 deals. The banks and financial sector witnessed as many as 12.53mn stocks valued at QR888.18mn change hands across 10,023 transactions. As many as 6.65mn industrials stocks valued at QR447.56mn trade across 6,145 deals and the telecom sector saw 5.51mn equities worth QR125.31mn trade in 2,851 transactions. The market saw a total of 1.85mn consumer goods stocks worth QR78.23mn change hands across 1,356 deals. The transport segment recorded 1.25mn shares valued at QR49.15mn trade in 870 transactions. The insurance saw a total of 1.24mn equities worth QR94.53mn trade across 880 deals. In the debt market, there was no trading of government bonds and treasury bills during the week. NBA | Page 7 TENNIS | Page 5 GOLF | Page 9 Seahawks seek to topple Pats dynasty in Super Bowl Djokovic masters Wawrinka to reach final McIlroy seizes Dubai lead with late birdie blitz Saturday, January 31, 2015 Rabia II 11, 1436 AH GULF TIMES FOCUS ‘We put in serious work to ensure Qatar 2015 is a success’ Organising Committee director general Dr Thani al-Kuwari says that the delegates’ feedback proves that this is the best handball world championship in history T he Qatar 2015 Organising Committee held a press conference at the Lusail Multipurpose Arena on Thursday evening in the presence of the Organising Committee director general Dr Thani al-Kuwari, Marketing and Communication Committee head Sheikha Asmaa Thani al-Thani, and Protocol Committee head Saeed Abdullah alEidah and Security Committee’s Abdullah Sultan al-Ghanim. “The Organising committee was determined to put up a tournament according to the promises we had made,” Dr al-Kuwari said. “There were rumours that Qatar cannot put up good facilities and there was no readiness but since the beginning of the tournament, we have proven the contrary. Our work on the ground has demonstrated that Qatar puts out serious work and not just words.” He added that there were a lot of meetings in the run up to the tournament with the International Handball Federation (IHF). “Headed by the Organising Committee chairman HE Sheikh Joaan bin Hamad al-Thani, the committee looked into all the details, small and large, and we are proud of having a leader of his stature. Our efforts have proven that Qatar has people capable of achieving success,” Dr al-Kuwari added. “There was transparency with the IHF, and there were visits by the international federation to ensure that we meet the deadline. And on the first day, everyone was impressed by our facilities and the event we put out. “We always aspire for the better and our goal is to offer the best tournament in the history. And delegates, officials, have said that Qatar has organised the best World Championship in history. These reactions are thanks to everyone’s efforts, led by HE Sheikh Joaan.” When asked about attendance, he said, that the tournament caught on with the masses as it progressed. “We know how important handball is to Europeans, but we were able to create awareness among the Arabs and Asians, who eventually began to attend the matches in big numbers. More than three thousand tickets were sold for the semi-finals on the tourna- ment website,” he said. He added that the message sent out by Qatar by successfully organising the handball world championships is that Qatar can successfully host the 2022 World Cup. “There were many campaigns against Qatar and but our response to such sceptics is hosting a successful handball world championship in 2015. Our efforts have proven that Qatar is capable of organising major events, even the Olympics, not just the World Cup.” Dr al-Kuwari said that the Organising Committee for 2017 World Championship in France and European Championship in Poland have asked for sharing of experiences in hosting this Championship, and that they will be happy to do so. 2 Gulf Times Saturday, January 31, 2015 24TH MEN’S HANDBALL WORLD CHAMPIONSHIP REPORT Qatar continue dream run, beat Poland to reach final Hosts are the first non-European side ever to reach handball world championship final By Yash Mudgal Doha Q atar and Valero Rivera’s ‘dream’ continues at the 24th Men’s Handball World Championship. Yesterday, in the first semi-final at Lusail Multipurpose Hall, the hosts continued their historic run when they beat Poland 31-29 in front of an ecstatic crowd to become the first non-European side ever to reach a world championship final. Before this tournament, no other Asian team had gone beyond the quarter-finals, while only two African sides – Tunisia and Egypt -- had ever reached the semi-finals. Qatar will meet Olympic and European champions France in the final. “As I said earlier, to reach so far in the championship is a dream for us and I am happy that it’s continuing,” Rivera said. He gave full credit of the victory to the hard work by the players. “It was a team effort. We have given our 100 per cent in all the matches and happy to see the boys are playing. I am very, very happy for the country,” he said. “We had talked about the need for a two or three goal lead at half-time as we knew that so far in this tournament, Poland had won the second-half in all their matches, except against Denmark and Croatia, against whom they drew in the last 30 minutes. “Therefore, we expected the task to be impossible, if we did not lead by two or three goals at half-time, but fortunately we did, and we managed to make it to the end, though Poland played very, very well,” the Spaniard said. The hosts, who went into the tournament ranked 36, had said at the beginning of the event that their aim was to reach the last eight. Poland started better, but Rivero’s decision to introduce goal-keeper Danijel Saric in place of Goran Stojanovic changed the tide for the hosts in the last 10 minutes of the game. Qatar opened the match with aggressive defense, but it provided Poland’s line player Kamil Syprzak room to score first two goals for the visitors. This made Rivera move his defense a bit back soon and this gave opportunity to other Polish players. Qatar players celebrate their win over Poland in the 24th Men’s Handball World Championship semi-final at Lusail Multipurpose Arena yesterday. PICTURES: Jayan Orma Within the first quarter, Poland already had three two-minute suspensions, while Qatar had none, but nonetheless Poland managed to take lead. Polish defence was so strong that Qatar’s top scorer Zarko Markovic (60 goals) scored only once in the first half. Left back Rafael Capote was the only Qatar player to cause the Polish defense Qatar’s Youssef Benali celebrates yesterday’s win. Qatar fans celebrate the semi-final win over Poland yesterday. some trouble in that first phase of the match, scoring four goals. As half-time approached, Saric saved some goals and with seven and a half minutes left in the first half, Qatar managed to take the lead for the first time at 12-11. That lead was extended to 13-11 and 15-12, as Qatar took the upper hand in the last minutes of the first half. The hosts went into halftime at 16-13. Qatar continued increasing their lead in the second half when they made it to 21-16 before Poland managed to crawl closer. But they never got any closer than being two goals down. “In the last ten minutes of the match, the decisions from the referees went in favour of the hosts, but I think our team can be proud of our performance and our will to fight, and now we are aiming for the bronze medal,” said Poland centre-back Piotr Maslowski. Capote and Kamaladin Mallash scored six goals each for the winners. “I feel so proud to be part of this team, we are in the final. Incredible! We have worked so hard to reach this far and now we can continue our dream,” Qatar line player Borja Vidal said. Left back Michal Jurecki, who netted nine for Poland, said: “I have highest respect for the fighting spirit of my team. On Sunday we will have to fight for bronze medal and we are eager to return home with the medal.” Qatar’s Rafael Capote (second from left) looks to score against Poland yesterday. Capote scored six goals. Qatar coach Valero Rivera guides his players during the semi-final against Poland yesterday. Gulf Times Saturday, January 31, 2015 3 24TH MEN’S HANDBALL WORLD CHAMPIONSHIP REPORT FOCUS France down holders Spain to reach title decider Denmark to take on Croatia for the fifth spot in the tournament France’s Michael Guigou (top) shoots past Spain’s Valero Rivera during their 24th Men’s Handball World Championship semi-final in Doha yesterday. (Reuters) By Yash Mudgal Doha R eigning Olympic and European champions France defeated champions Spain 26-22 in a keenly-fought semi-final at the Lusail Multipurpose Hall yesterday. France will meet Qatar in the final tomorrow. Both teams opened the match at high speed, playing the powerful kind of handball they are both known for. It was France who first managed to create a substantial lead, going ahead 10-6 and 12-7 after the first quarter of an hour. Thierry Omeyer was key in France’s strong performance during the period, as the 38-year-old goalkeeper pulled off some incredible saves. Spain tried stemming the fluent attacking play by France through a 4-2 defence, but the Spaniards did not get any closer than three for the rest of the first half which France led 18-14. It took France nearly five and a half minutes to score their first goal in the second half, with Guillaume Joli scoring a penalty, which was also their only goal in the first 10 minutes after the break. France still held a slight upper hand, as Spain were creeping closer all the time, right up until right wing Valentin Porte decided it all with his goal to make it 2522 with a little over a minute left. Joan Canelles and Cristian Ugalde scored five each for Spain, while Cedric Sorhaindo also scored five for France. DENMARK BEAT SLOVENIA Denmark defeated Slovenia 36-33 in the match for the fifth to eighth placements at Ali Bin Hamad Al-Attiya Arena. The powerful Danish squad will play against Croatia, who defeated Germany 28-23, for the fifth spot in the last match of the tournament. Slovenia will face off with Germany for the seventh and eighth spot. Slovenian right wing Dragan Gajic showed why he is the strongest candidate to win the title of the top scorer, providing for his team with the goals very early in the match. The team who finished fourth in the last world championship in Spain was two goals up after 14 minutes (8-6), before right wing Lasse Svan Hansen kickstarted a strong period for the Danes. SG Flensburg’s left-hander hit 100 percent of his shots up until the half-time break (8/8). Svan Hansen was leading the fast-breaks for the Danish squad. The runners-up from the last two major competitions (Euro 2014 and World Championship 2013), pulled off an impressive 7-0 run in only five minutes which was the last action of the first-half (13-8 on the 20th minute). Slovenian coach Boris Denic was faced with a possible problem in defence after By Sports Reporter Doha A bdulla Mohamed al-Hajri (pictured), head of the Administration Committee of Qatar 2015, has congratulated the Organising Committee on its collaborative efforts that have helped ensure that the 24th Men’s Handball World Championship has exceeded expectations. “Everything we have achieved has been possible because of the leadership demonstrated by HE Sheikh Joaan bin Hamad al-Thani, president of the Organising Committee. The entire committee gathers for daily meetings to discuss and address any issues. This has ensured that proceedings have been smooth,” he said. The Main Operations Centre has been the central hub of the 24th Men’s Handball World Championship and the daily meetings have encouraged cross-committee dialogues that have contributed to the success of the event. Speaking about the contributions made by whole team, he added, “The dedication shown by committee and workforce has ensured that Qatar 2015 will be a success. In particular, it has an excellent opportunity for Qatar nationals to lead and demonstrate that we can produce a world-class sporting event. “Another crucial element has been the Volunteers Programme, which has brought together more than 1,500 people to work for the Championship. Potential volunteers registered on the official website and the initial response was overwhelming. We received about 3,500 applications then they were filtered down through interviews. There are also a huge number of Qataris that volunteered for the event, and we owe thanks to Ministry of Administrative Development, Josoor Institute, Qatar University as well as different schools under the Supreme Education Council for encouraging people to take part,” he explains. In addition to Qataris, volunteers from a wide range of nations – particularly the English, German and Filipino communities – have contributed significantly to the success of the tournament. Kylie live tomorrow Australian singing star Kylie Minogue will perform live tomorrow at Lusail Multipurpose Hall, Qatar 2015 Organising Committee announced on Twitter yesterday. All those with a ticket for the final can enjoy the live performance. SPOTLIGHT BOTTOMLINE School benefits from Maersk sponsorship of Qatar 2015 By Sports Reporter Doha A s part of Maersk’s sponsorship of the 24th World Men’s Handball Championship, students at one lucky school in Qatar have gained the chance to rub shoulders with fans from around the world. Twenty four teams are competing in the tournament, which is expected to draw up to one billion TV viewers worldwide over a fortnight of competition. Twenty tickets to the championships were handed over to Newton International Academy by Maersk and handball mascot Fahed, as part of the company’s support and sponsorship for the Schools Olympic Program. As part of this sponsorship, Maersk Oil promotes the benefits and the importance of healthy lifestyles in enabling sporting and academic success. The Schools Olympic Program (SOP) is an annual multi-sport inter-school competition for more than 25,000 students in Qatar aged 5 to 18 years old. It runs for 7-8 months and culminates in finals at the Aspire Dome. It is designed to promote an active, healthy lifestyle for young people while also educating them on a particular sporting theme. The eighth annual finals day for the SOP will be held on March 20. Lewis Affleck, Maersk Oil Qatar’s Managing Director, said: “Sport plays an important role in the social development of Qatar, so we are proud to be a prestige sponsor of the World Handball Championships. At Maersk, we are committed to defensive specialist Matej Gaber was sent off in the 32nd minute. However, the biggest problem was how to stop Lasse Svan Hansen instead of the biggest star of the team – Mikkel Hansen. Denmark was up by seven in the 40th minute (27-20), but the Slovenians, similar to the quarter-final clash against France, didn’t give up until the last second of the match. Gajic, Cehte, Zvizej and their teammates put the pressure on Denmark by eating into their lead in the 51st minute (29-26). Danish coach Gudmundur Gudmundsson called a time-out in a bid to bring a lackluster period to an end, and it was enough for the win, as the Balkan boys didn’t come closer than three goals to the Danish outfit. Right wings of both teams were the top scorers as Lasse Svan Hansen scored 13 for the winners, while Gajic ended with 12 goals Slovenia. Qatar 2015 has given nationals ‘a chance to shine on a world stage’ Qatar 2015 mascot Fahed visits Newton International Academy. playing a part in the continued human, social, environmental and economic development of Qatar as it works towards achieving the ambitious goals of the Qatar National Vision 2030”. John Woolgar, Head of Sport at Newton International Academy said: “Sports stars have a strong influence on students so I’m sure the handball championships will further embed how important a healthy lifestyle is for success in sport but also in life generally. It’s great that our students got to experience such a world-class competition here in Doha, and I’m sure that it will inspire them to pursue their sporting goals.” Maersk Oil Qatar – the operator of one of the world’s most complex oil fields at Al Shaheen, offshore Qatar – has an active social investment programme, focused on delivering and supporting projects and partnerships that can make a positive and lasting contribution to the economic and social development of Qatar. African teams missed out again E uropean teams have continued to dominate in major handball events while the African nations have been trying hard to get noticed on the world stage. It was the same script here in Doha at the 24th Men’s Handball World Championship. Tunisia and Egypt showed a good run in the competition qualifying to the eighth-finals but their efforts were not sufficient as they were overpowered by Germany and defending champions Spain respectively, while African champions Algeria got a rude shock in the competition ending their campaign without a win. Reached for a comment on the team’s poor performance, right back Khaled Chentout, who plays for Notteroy HB Norvege, found that inexperience contributed to the poor results compared to their opponents. “Nothing really went wrong in the championship. We played our game but playing with the World’s best sides is not easy because they play higher leagues in other developed countries. The style of play is also different,” said Khaled The Algerian team had only four players in the squad who play professionally — Sassi Boultif (Nasr Emirat, Dubai), Rabah Soudan (Cherbourg, France), El Hadi Biloum (Martigues HB, France) and Aski Mokran (US Dunkerrque, France). African Handball Federation (CAHB) president Aremou Mansourou was still satisfied with the performance of the teams pointing to the fact that the Algerian team fielded a young squad. “I expected more from Algeria but I am happy for them because they have a young team in the championship. Tunisia and Egypt have done a good job qualifying for the next round.” But he also noted that the continent has to do more Algeria’s Sassi Boultif is one of only four players in the African team’s handball Worlds squad who play professionally. Boultif plays for Dubai’s Nas Emirat. (EPA) in order to improve the results in the big championships in the future. “After the championship, we will organise a meeting with top African countries to share how we can move forward. In order to improve the sport we must have facilities. We also want to look into having our best players play in European leagues to improve their game. That is the only way we can do better in the international championships.” 4 Gulf Times Saturday, January 31, 2015 24TH MEN’S HANDBALL WORLD CHAMPIONSHIP PICTURE PERFECT Fans created an electric atmosphere during the semi-finals in the Lusail Multipurpose Arena yesterday. PICTURES: Jayan Orma A dedicated team has been posted to cater to the entire media present at the Handball World Championship. Every day thousands of media personnel are enjoying the meals and snacks at the Losail Multipurpose Hall, Ali Bin Hamad Al Attiya Arena and Duhail Handball Complex. Gulf Times Saturday, January 31, 2015 5 TENNIS SPOTLIGHT WOMEN’S FINAL PREVIEW Djokovic prevails over Wawrinka in tense five-setter Sharapova aims to bury the past with fresh start against Williams ‘I did not play on the level that I intended’ DPA Melbourne F Take that...Novak Djokovic of Serbia in action against Stanislas Wawrinka of Switzerland during their semi-final match at the Australian Open yesterday. AFP Melbourne W orld number one Novak Djokovic fought off Stan Wawrinka over five tense sets to master the defending champion and reach his fifth Australian Open final yesterday, where he will meet Andy Murray. The Serb top seed won 7-6 (7/1), 3-6, 6-4, 4-6, 6-0 in 3hr 30mins and will face the British sixth seed for a third time in tomorrow’s Grand Slam decider. It was Djokovic’s toughest match of the tournament and his serve was broken five times in another titanic duel with the Swiss world number four. The clash was their fourth straight Grand Slam encounter to go to five sets with Djokovic winning three of them. He lost to Wawrinka in the quarter-finals at last year’s Australian Open. “I did not play on the level that I in- tended,” he said. “There were parts of the match where I stepped in and played a game I needed to play, but other parts where I played too defensive and allowed him to dictate the play from the baseline. “He has great depth in his shots. Once he has control of the rallies it’s very difficult to play against him. “So it was very emotional, very tense, as it always is against a top player in semifinals of a Grand Slam.” The top seed won through to his fifth Australian Open final, having won his previous four deciders in Melbourne. He beat Murray in the 2011 and 2013 finals. But Murray also has form against Djokovic, beating him in the 2012 US Open and 2013 Wimbledon finals, setting up an unpredictable Melbourne Park decider. It was not a convincing performance from the Serb, who made 49 unforced errors to 27 winners and won just 70 percent of his first serves, but crucially he broke Wawrinka’s strong serve seven times. “I think it was more mental because once you back up and start playing defensively you spend a lot of energy,” Djokovic said of his mid-match lapses. “He was the one that was dictating the rallies. There’s no question about it. “Some points of the match I did struggle physically to recover for the next one because I run a lot and he was getting a lot of balls back in play. “I didn’t have many free points on the firs=t serve as I did throughout the tournament, so that was a significant change.” Wawrinka said he too struggled mentally and was not at his best. “I was telling my box it was tough for me to stay with him, to find a way to win points,” he said. “Because I was just trying to fight and to make some good choice, but today I was just not there.” Djokovic had lost only one of his 74 service games prior to the semi-final, but Wawrinka broke him in the seventh game of the match with a series of withering backhands. Results Men’s singles semi-finals: Novak Djokovic (SRB x1) bt Stan Wawrinka (SUI x4) 7-6 (7/1), 3-6, 6-4, 4-6, 6-0 Women’s doubles final: Bethanie Mattek-Sands (USA)/ Lucie Safarova (CZE) bt Chan Yung-Jan (TPE)/Zheng Jie (CHN x14) 6-4, 7-6 (7/5) Mixed doubles semi-finals: Martina Hingis (SUI)/Leander Paes (IND x7) bt Hsieh Su-Wei (TPE)/Pablo Cuevas (URU) 7-5, 6-4 Daniel Nestor (CAN)/Kristina Mladenovic (FRA x3) bt Sania Mirza (IND)/Bruno Soares (BRA x1) 3-6, 6-2 (10/8) ive-time grand slam winner Maria Sharapova is not letting thoughts of her 2-16 record against Australian Open opponent Serena Williams colour her preparation for today’s final with her biggest rival. Sharapova last won a match in the series a decade ago and lost to the American twice last season. For the world number two, this latest final is all about starting a fresh and burying the past. “I’m going into a Grand Slam final, I don’t want to focus on (the record). This is a new match,” said the 27-year-old Russian who holds five grand slam titles against 18 for Williams. “My confidence should be pretty high going into a final of a grand slam no matter who I’m facing. Even if I’ve had a terrible record, to say the least, against someone, it doesn’t matter. “I got to the final for a reason. I belong in that spot. I will do everything I can to get the title.” Sharapova lifted the Melbourne title in 2009 while Williams holds five, the last one earned in 2010. “It’s been a really long time since I won here. It would be extremely meaningful for me to win it again,” said the Russian, who will be competing in her fourth Melbourne final. “I’ve had really good matches and a good record here in Australia, even since the junior days. “I’ve been able to carry it over as a professional. I’ve had many great memories on Rod Laver Arena. I’ve hopefully set myself up for another good one.” Sharapova knows she can’t rely on the same tired tactics against Williams if she is to stop the rot. “Her power and her aggressiveness, have always made me a little bit too aggressive, maybe going for a little bit more than I had to. “She’s great at making players hit that shot that you don’t necessarily have to go for. It’s been a really difficult matchup for me, but I’m a competitor. I will go out and I will do everything I can to try to change that (losing) result around.” Williams will be trying to win her second straight major after the US Open last September with the 33-year-old now assured of holding onto the WTA top ranking no matter what happens as she meets the number two player. “Maria is playing great. she’s a fighter and she refuses to give up. This will be a new match. She has nothing to lose, once again - she has only things to gain. “I feel that way, too. I’ve won this tournament several times. I don’t have to go out there and have another title. I want it - but it’s not life or death for me. “That helps me he relax. Neither of us have anything to lose, so it will be fun.” Williams has her strategy mapped out. “It’s going to be important for me to get off to a good start. If not, I’m going to be ready to fight. I can see that she wants to do well.” Yui Kamiji (L) of Japan and Jordanne Whiley of Great Britain in action against Jiske Griffioen and Aniel Van Koot of the Netherlands in the women’s wheelchair doubles match at the Australian Open yesterday. BOTTOMLINE Wawrinka ‘mentally dead’ after Open exit AFP Melbourne S tan Wawrinka said he was “mentally completely dead” after bowing out in five sets to Novak Djokovic to end his Australian Open title defence in the semifinal yesterday. The Swiss fourth seed had his moments during the intense 3hr 30min match on Rod Laver Arena but it was the Serb world number one progressing to tomorrow’s final against Andy Murray after winning 7-6 (7/1), 3-6, 6-4, 4-6, 6-0. “I’m really happy with my level. It was mentally that I think I’m paying for the price to finish off the season with Davis Cup and not having a bigger offseason,” he said. “I was trying to focus really well to start the year well with winning Chennai and being here trying to do the best. “I told my coach before the match that I was mentally completely dead and had no battery. “It was tough to focus on what I want to do. Tough to focus on my game. And Stanislas Wawrinka of Switzerland returns to Novak Djokovic. that’s what happened today.” Wawrinka said the match was not top quality, compared to sixth seed Murray excelling in beating seventh seed Tomas Berdych in the other semi-final on Thursday. The Swiss upset Djokovic in last year’s quarter-finals on the way to winning the Australian Open for his first major title, but Friday’s match was nowhere near that standard. “Describe the match? Strange. Not the best, for sure. I think there were a lot of ups and downs,” he said. “At the beginning conditions weren’t too good. The balls were flying about and were not easy to control. It was not the best match, for sure. “I’m surprised we went five sets again, but, no, we had some great battles here last two years. He was there playing good enough to win and he deserved to win and play the final.” Wawrinka, sporting a ‘Stan the Man’ shirt, said he was planning to take a week’s break before his next tournament and had adjusted his playing schedule this year to allow for more rest and practice. “I think I have a good schedule for the year. I will try to have some moments when I can practice with my coach and fitness trainer, when I can have some holiday,” he said. “So it should be fine for the year again. I think it’s about the right schedule for the year.” Melbourne: The unseeded pairing of American Bethanie Mattek-Sands and Czech Lucie Safarova won the Australian Open women’s doubles title yesterday, their first Grand Slam success. The two were playing together in Melbourne for the first time and clicked immediately, downing the 14th seeded Zheng Jie of China and Taiwan’s Chan Yung-Jan 6-4, 7-6 (7/5). “I mean, our name is carved on this trophy. It’s pretty cool,” said a delighted Mattek-Sands, who slipped to 258 in the singles rankings after injuring her hip last year. “This trophy at least started in 1922, I think. It’s got a lot of great names on there. We get to add ours now.” They beat five seeds to clinch the title and in doing so became the first unseeded women’s duo to claim the Australian crown since Svetlana Kuznetsova and Vera Zvonareva in 2012. 6 Gulf Times Saturday, January 31, 2015 CRICKET SPOTLIGHT RECOVERY Dhoni insists out of form India primed for the World Cup ‘From a confidence point of view we are quite good. It has been a long tour so far but with this break now will really help us. The guys should be able to come back strong’ Scoreboard INDIA INNINGS A. Rahane c Buttler b Finn 73 S. Dhawan c Buttler b Woakes 38 V. Kohli c Root b Ali 8 S. Raina c Woakes b Ali 1 A. Rayudu c Buttler b Broad 12 MS Dhoni lbw Anderson 17 S. Binny c Bell b Finn 7 R. Jadeja c Finn b Broad 5 A. Patel c Bell b Finn 1 M. Sharma not out 7 M. Shami c Buttler b Woakes 25 Extras (lb2, w4) 6 Total (all out, 48.1 overs) 200 Fall of wickets: 1-83 (Dhawan), 2-103 (Kohli), 3-107 (Raina), 4-134 (Rayudu), 5-136 (Rahane), 6-152 (Binny), 7-164 (Dhoni), 8-164 (Jadeja), 9-165 (Patel), 10-200 (Shami). Bowling: Anderson 9-1-24-1, Woakes 9.11-47-2, Broad 10-1-56-2, Finn 10-0-36-3, Ali 10-0-35-2 ENGLAND INNINGS I. Bell lbw Sharma 10 M. Ali c Rayudu b Patel 17 J. Taylor c Raina b Sharma 82 J. Root c and b Binny 3 E. Morgan c Dhawan b Binny 2 R. Bopara c Jadeja b Binny 4 J. Buttler c Rayudu b Shami 67 C. Woakes not out 4 S. Broad not out 3 Extras (w7,nb2) 9 Total (7 wickets, 46.5 overs) 201 Fall of wickets: 1-14 (Bell), 2-40 (Ali), 3-44 (Root), 4-54 (Morgan), 5-66 (Bopara), 6-191 (Taylor), 7-193 (Buttler). Bowling: Binny 8-0-33-3, Sharma 10-1-36-2, Shami 9-0-31-1, Patel 10-1-39-1, Jadeja 9.50-62-0 Virat Kohli of India grimaces after being dismissed against England at the Western Australian Cricket Association (WACA) ground in Perth. AFP Perth I ndia captain Mahendra Singh Dhoni insisted yesterday his team will be primed for their upcoming World Cup title defence, despite ending a miserable tour of Australia without a win. India bowed out of the one-day international tri-series with another poor batting effort, which condemned them to defeat in their clash with England at the WACA Ground in Perth. Sent in to bat, India were dismissed for 200 and although England stumbled early, they recovered to edge their way to 201 for seven and win with 19 balls to spare. That booked England a berth in tomorrow’s final against Australia at the same venue. It ended a fruitless three-month tour for India ahead of next month’s World Cup in Australia and New Zealand, in which they failed to notch a win in 10 matches, including four Tests and four one-day internationals. Dhoni conceded their batting had been a concern. However, he expected his batsmen to regain their best form before the World Cup and said the focus would be on recharging their batteries in the coming weeks. “From a confidence point of view we are quite good,” he said. “It has been a long tour so far but with this break now, it will really help us. The guys should be able to come back strong.” With the winner of the game advancing to tomorrow’s final, England looked in deep trouble when they slumped to 66 for five in their run chase. However, James Taylor and wicketkeeper-batsman Jos Buttler rescued their cause. The pair rode their luck to put on 125 for the sixth wicket and carry their side to within 10 runs of victory, before both fell in quick succession. Taylor made 82 (122 balls) before holing out to deep fine leg from the bowling of Mohit Sharma in the dying stages of the chase. Buttler made the most of an early reprieve, when he should have been run out. He went on to make a match-winning 67 from 78 balls before falling just two runs after Taylor, caught on the boundary from the bowling of Mohammed Shami. Taylor said England was looking forward to the final with a win handing them a psychological advantage ahead of their World Cup opener in Melbourne. “It would make a massive statement, no doubt,” he said. “It is going to be a challenge, they are playing some great cricket at the moment, but we are all looking forward to it. “We know if we string all three facets together and do them to the best of our ability, which we are getting close to doing, we know we are going to put in a real good performance on Sunday” Having been sent in to bat, India squandered the good platform provided by their openers. They lost six wickets for just 31 runs to slump to 165-9, before some late hit- ting from Mohammed Shami (25 from 18 balls) and Mohit Sharma boosted their total. The Indians made an encouraging start to their innings through the previously out-of-form Shikhar Dhawan and opening partner Ajinkya Rahane. The pair put on 83, but the innings started to unravel when Dhawan was caught behind by Buttler from the bowling of Chris Woakes for 38. Virat Kohli’s poor series then continued when he was caught by Joe Root from the bowling of spinner Moeen Ali (2-35) for just eight. Kohli averaged 86.50 during the Test series against Australia, which India lost 2-0, but has been unable to continue that form into the limited overs format, making just 24 runs at 8.00. From there, wickets fell steadily, with only Rahane offering serious resistance with 73. Steven Finn’s good series continued when he claimed 3-36 for England, with every English bowler tasting success. ‘Positive’ Clarke to test fitness on road AFP Sydney A ustralia captain Michael Clarke will bat in a local game this weekend as he embarks on a gradual return to competitive cricket in a bid to be fully fit for the World Cup after hamstring surgery. Cricket Australia said the 33-year-old, who also suffers from a chronic degenerative back condition, would turn out for Sydney’s Western Suburbs today and tomorrow. Then, if all goes well, for a Cricket Australia XI against a Bangladesh XI on February 5, adding a limited fielding capacity to his batting. “He remains on track for a return in Australia’s second ICC Cricket World Cup match on 21 February,” a statement said yesterday. “Michael is making good progress following his injury and the subsequent surgery six weeks ago,” said physiotherapist Alex Kountouris. Clarke had surgery in December after badly tearing his right hamstring during the first Test against India. That ruled him out of the following three Tests and threat- ened his involvement in the world one-day tournament which begins on February 14 in Australia and New Zealand. Kountouris said Clarke was on track to play the second match of Australia’s World Cup campaign against Bangladesh in Brisbane on February 21. Clarke said the weekend knock was “a positive step on my road to a return to full fitness. “It is exciting to be at this stage where I can consider walking onto a cricket field again ... the signs are positive. “I know I need to take things one step and one day at a time and so, for now, all I am doing is focusing on things day by day and with a belief in a positive outcome.” The news came after a week of headlines suggesting Clarke was on a collision course with Cricket Australia over World Cup selection if he failed to regain fitness in time. Fairfax Media has also reported that the team are very settled and successful under laid-back young stand-in captain Steve Smith, raising questions about whether the more aggressive Clarke would get his place back. A Cricket Australia XI will also play against the Bangladeshis on February 3 as part of the tourists’ build up to the World Cup. Miller replaces Narine in Windies WC squad Left-arm spinner Nikita Miller will replace Sunil Narine in the West Indies squad for next month’s World Cup, the West Indies Cricket Board said. Off-spinner Narine, who was reported for a suspect action during the Champions League Twenty20 tournament in September, has withdrawn from the squad, saying he needed more time to bowl confidently with his remodelled action. Miller, 32, has taken 40 wickets in 45 One Day Internationals, the last match being against England last March. West Indies begin their World Cup campaign against Ireland at Nelson on Feb 16. Bangladesh need to be realistic about World Cup chances, says former skipper Athar Ali Former Bangladesh captain Athar Ali Khan yesterday stated that the country needs to be realistic about the team’s chances in the World Cup. “I know about the expectations 16 crore people have from our cricket team, but it has to be realistic. We must take our opponents into consideration,” Khan was quoted as saying by the Dailystar. “They are capable of winning matches against any team. But even India is struggling in Australia after playing four Tests, so we have to be realistic.” Khan also said the team needs to take one game at a time. “Right at this moment I am not looking beyond Feb 18 (first game). We need to win our first game against Afghanistan and after that many things can happen in favour of the Tigers,” he said. The 52-year-old also believes that given the talent that the team has with the world’s best all-rounder Shakib Al Hasan and batsman Tamim Iqbal leading the pack, they would surely put up a fight in the quadrennial tournament. BOTTOMLINE Afghan cricketers prepare for ‘dream’ debut AFP Kabul A t an indoor academy in Kabul, Afghanistan’s cricketers are training hard for their debut in the upcoming World Cup tournament in Australia and New Zealand next month. Shuttle runs and lifting weights help keep out the bitter chill of the Afghan winter as the players tune up for the tournament on warmer antipodean shores. The Afghans’ opening match against Bangladesh in Canberra on February 18 will mark the culmination of a fairytale journey for a team born in the ashes of decades of war. Afghanistan qualified for the last two World Twenty20 tournaments in 2010 and 2012 but lost all their matches, however this will be their first time in the 50-over tournament. “It really means so much to play in a mega event like the World Cup,” Mohammad Nabi Eisakhil, the team’s 30-year-old captain, wearing a thick jersey and winter hat inside the chilly training facility, told AFP. Cricket came to Afghanistan through Afghan cricketers practice at the Kabul Cricket Academy training centre in Kabul. refugee camps in Pakistan, where countless Afghans fled the 1979 Soviet invasion of their homeland. After learning it in exile, young Afghans brought cricket back with them when the Taliban fell in 2001 and the game has gone from strength to strength ever since. Afghanistan face a tough fight to get out of their group, which includes Test powerhouses Australia, Sri Lanka, England and New Zealand. Only the top four in each group go through to the knockout stages. But the side are buoyant after beating Bangladesh in the Asia Cup last year and know the big-name sides will be wary of a possible giant-killing. “We have a chance, if we play to our potential, to qualify for the quarterfinals,” said Nabi, an off-spinning allrounder with 43 one-day internation- Afghan cricketers pose after practice at the Kabul Cricket Academy in Kabul. als under his belt. “This is a game that can bring Afghanistan together and be a very good tool for peace and stability.” The Taliban are gone from power in Afghanistan but their resilient insurgency still exacts a bloody toll, particularly on civilians. The country’s cricket board chairman Nasimullah Danish agreed with his captain that the game is a good way to inspire the country—and spread a more positive image abroad. “We will rock the World Cup, all the boys are in confidence,” Danish said. “We will show to the world that we are cricketers, and we are the people of peace, and we are the people of sports.” A lack of facilities and security issues have been major challenges for the cricket team, but the Afghans’ wholehearted approach—not to mention their fairy- tale rise—won over many neutrals in their World Twenty20 appearances. The team’s English head coach Andy Moles, a solid opening batsman for Warwickshire in his playing days, said part of his role was to channel and focus their fearsome competitiveness. “The overriding factor for my team is their passion and their excitement for the game,” said Moles, who has previously coached Scotland and New Zealand. “They play very instinctive cricket, and a big point for me is the challenge to get them to stay calm under pressure.” Moles is realistic about the team’s chances, targeting a win over Bangladesh and saying qualifying for the quarter-finals would be like winning the whole tournament. For players like Hamid Hassan, the chance to compete in his country’s royal blue shirt at famous stadiums is an achievement in itself. “If we (look) back 10 years we had nothing. We are thinking this is like a dream and we feel so proud,” said the 27-year-old bowler. “We have waited 10 years for this moment,” Hamid added. “I dreamed of playing on the biggest stage and now the time has come to do our best in the tournament.” Gulf Times Saturday, January 31, 2015 7 SPORT NFL Seahawks seek to topple Pats dynasty in Super Bowl 49 ‘They’ve got a lot of eyes on the quarterback, so you’ve got to be conscious of those things’ AFP Phoenix, Arizona T om Brady and the scandal-tainted New England Patriots will aim to strike a blow for the old order in Super Bowl 49 tomorrow as they face a formidable Seattle Seahawks team bidding to forge a dynasty. After a build-up dominated by the “deflategate” saga, the Patriots are determined to puncture the dreams of a Seahawks outfit chasing back-to-back Super Bowls for only the eighth time in history. The last team to accomplish the feat were the Patriots, whose 2004-05 titles capped a glorious run of three wins in four seasons. Brady piloted the Patriots to all of those victories, and now vies to join his boyhood idol Joe Montana and Terry Bradshaw as starting quarterbacks with four Super Bowl rings. But the game at University of Phoenix Stadium in suburban Glendale could just as easily see a passing of the torch, from oldguard Brady to rising star Russell Wilson. The 26-year-old Seahawks signal-caller is now 10-0 in his career when he goes head-tohead against quarterbacks who have won a Super Bowl. That includes the Seahawks’ crushing victory over Peyton Manning and the Denver Broncos in last year’s title game. Seattle have made some changes since then but they still boast an elite defense, led by their ferocious corps of defensive backs—the Legion of Boom. Best defense ever? The Seahawks are the first team since the 1969-71 Minnesota Vikings to lead the NFL in scoring defense for three straight seasons—lending credence to defensive end Michael Bennett’s claim that Seattle now boasts the best defense “ever to play football.” A Super Bowl repeat would go a long way to further backing up the claim that the Seahawks “D” has surpassed Pittsburgh’s famed New England Patriots Tom Brady will aim to strike a blow for the old order in Super Bowl 49 tomorrow as they face a formidable Seattle Seahawks. “Steel Curtain” or the imposing squads of the 1980s Bears and 2000 Ravens. “I am too young to be thinking about legacy right now,” said Seattle safety Earl Thomas, “but sometimes you don’t have to say anything because your work speaks for itself. We definitely have that on the table.” Brady is gearing up for the challenge. “There is nothing easy about what they do,” Brady said of the ENTERTAINMENT Seahawks defense. “They’re very disciplined. They’re very smart. They’re very well-coached. “You’ve got to run good routes, you’ve got to make good throws, you’ve got to throw it through tight windows. “They’ve got a lot of eyes on the quarterback, so you’ve got to be conscious of those things. But you still have to be able to play aggressively and play with confidence.” Brady and the Patriots, who suffered Super Bowl disappointment in 2008 and 2012, could yet secure their status as the league’s dominant team for more than a decade—despite the whiff of scandal carried by the 2007 “Spygate” illegal videotaping af- fair and the “Deflategate” controversy over improperly inflated footballs that followed them to Phoenix. The Patriots, from coach Bill Belichick on down, have tried to set the matter aside this week and focus on the task in hand. Brady’s options have expanded this season with the return of a healthy Rob Gronkowski at tight end and the addition in November of productive running back LeGarrette Blount. New England’s defense this season has been bolstered by the return of safety Patrick Chung and the addition former Pro Bowl cornerbacks Darrelle Revis and Brandon Browner. In addition to contending with the resourceful Wilson—adept at throwing on the run and capable of significant gains on the ground, the Pats defense will have to find a way to slow down Marshawn Lynch, set career highs with 13 rushing and four receiving touchdowns to lead the league with 17 total TDs. The contest promises to be a classic, and that’s just what the NFL would like to see as they try to finish a season full of low notes on a high. The disastrous handling of the Ravens’ Ray Rice and his domestic violence case shone a spotlight on the league’s failure to deal effectively with the issue among its players. But come tomorrow, when more than 100mn Americans are expected to tune into the game, it will be a celebratory spectacle that they see. “When you think of dynasty at the beginning, you think of the Patriots back in the day,” said Seahawks linebacker O’Brien Schofield. “They really set that standard of a winning tradition.” It’s a standard Schofield is confident the Seahawks can meet. “With the players that we have, there are so many guys that are playing at a high level, and they’re so young. I think that when you find a great equation to win and all you’re doing each year is just trying to get better yourself, to me, that’s the true definition of a dynasty.” SPOTLIGHT Perry super excited Gronkowski, Chancellor for Super Bowl gig set for epic battle AFP Phoenix, Arizona Reuters Phoenix, Arizona K here will be no shortage of fascinating match-ups in Sunday’s Super Bowl but the clash between New England tight end Rob Gronkowski and Seattle strong safety Kam Chancellor could be the most crucial. Gronkowski caught 82 passes for 1,124 yards and 12 touchdowns during the regular season with his power and positional astuteness making him quarterback Tom Brady’s go-to option. But tomorrow he will be up against an opponent who matches him for physicality and athleticism. Asked what the first collision between the pair will be like, Seahawks cornerback Richard Sherman said, “It’s going to be loud. Two big, strong men — I think that’s what football is about. I think a lot of people are looking forward to that.” Chancellor is one of the standout members of Seattle’s league-best defense but he knows he is in for a busy night against Gronkowski. “That’s their playmaker, that’s their go-to guy. They’re definitely going to try and target him a lot, try to get him the ball,” said aty Perry promised good, clean fun and a few surprises in her Super Bowl halftime show, warming up for the coveted gig with a briefing that was as much performance as press conference. “I think I’m going to play to my strengths, which are humor, incredible joy,” Perry said as she looked ahead to the 12 ½-minute show that has become a must-see event in the middle of the NFL’s championship extravaganza. Clad in a football-themed, cheerleader-inspired pink and blue outfit, her black hair pulled back into a sleek tail, an ebullient Perry said she hoped the event would be a “wonderful, fun, not so serious time.” “I look back at past performers I admire, like Beyonce who brings that incredible strength and Madonna who really brought some incredible graphic design and choreography, I think what I bring is just some lightheartedness. “I will tell you, I’m probably the only person in Super Bowl halftime history who will bring both a lion and sharks to the show.” Perry refused to elaborate after that tease, and also refused to be drawn on a surprise guest, T Recording artist Katy Perry throws a football during the Super Bowl XLIX halftime show press conference at the Phoenix Convention Center on Thursday. although she did say the mystery entertainer who would join her was a woman who would make for “a real female fun night.” Perry, 30, is known for her flamboyant costumes and such hits as Firework, California Gurls, Dark Horse and Part of Me. Although the show is short, she said her fans could expect to see costume changes and hear at least snippets of many of her hits. “If I have 12 ½ minutes,” Perry said, “I’m going to show off a few looks ... the opening costume is going to flaming hot.” She fudged a bit when asked if she would sing everything live, rather than employing lipsynching to pre-recorded music. “We have a very short amount of time to get everything out, we have a huge stage, I’m going to be using a lot of graphic effects, so we have to lay out a layer on the field that is almost as big as the field so that the graphic effects will work ... but I think a lot of it will be live.” Perry, a pal of Seahawks quarterback Russell Wilson, says she has soft spot for Seattle because of the friendship but not necessarily a great deal of football knowledge. Still, she showed she was up to date on the talking points of Super Bowl week. “I think I can assure everyone here that nothing in my performance will be deflated,” Perry quipped, a reference to the ongoing controversy over improperly inflated footballs used by the Patriots in a playoff win.” Seattle strong safety Kam Chancellor upto the task of neutralising New England tight end Rob Gronkowski. Chancellor, who brings strength and speed to the secondary. Gronkowski is one of the biggest tight ends in the league at 6 foot 6 and 225 pounds but Chancellor says he is ready. “He’s a tight end for a reason. He was blessed with that size, that speed and that ability. “He is an athletic guy, fast guy and he’s crafty with what he does. He uses his body well to shed off defenders. He catches the ball well. He has a great quarterback. It’s a quarterback that looks for him on a lot of plays, and he gets a lot of target,” said Chancellor, who said the of- ficials will largely determine just how physical their contest becomes. For Seahawks coach Pete Caroll, Gronkowski, an intelligent route runner, poses several problems, requiring a flexible strategy. “Kam Chancellor is about as big as a strong safety as you will find (but) we’ll have to play him a number of different ways to have a chance to slow him (Gronkowski) down. They’ll get the ball to him, it’s just how effective it will be. “We have to do a terrific job of it because if we don’t, then he can control the football game.” Deep-sleeping Patriots unfazed by false fire alarms PHOENIX: A pair of false fire alarms that rang through the New England Patriots’ Super Bowl hotel was not enough to rattle the team as several players said on Thursday they slept through the blaring noise. A false alarm during the night on Monday was followed by another in the early morning hours on Thursday due to a smoke detector that was isolated to one wing of the resort where the team is staying ahead of tomorrow’s Super Bowl between the Patriots and defending champion Seattle Seahawks in Glendale, Arizona. When asked whether there was an issue with the alarm, none of the Patriots players claimed to have been bothered. “If there has, I haven’t heard it. I must be sleeping through it, so that’s good,” Patriots quarterback Tom Brady told reporters. The latest false alarm caused a two-minute disturbance and there were no injuries or reason to evacuate, a spokeswoman for the Sheraton Wild Horse Pass told Reuters. The hotel is looking into the cause of the false alarms. “It didn’t wake me up. I guess it wasn’t in my wing. I was fine,” said Patriots running back Shane Vereen. 8 Gulf Times Saturday, January 31, 2015 SPORT Durant and Thompson added to NBA all-star game LOS ANGELES: Reigning MVP Kevin Durant and first time all star Klay Thompson were selected to the NBA all-star game as reserve players, the league announced Thursday. Durant, who was named MVP of the 2012 all-star game and will be appearing in the marquee affair for the sixth consecutive time, has only played in 21 of Oklahoma City’s 46 games while dealing with foot and toe injuries. Golden State Warriors sharpshooter Thompson will be making his first appearance. There are plenty of familiar faces among the Western Conference reserves, including Durant’s Thunder teammate Russell Westbrook, NBA scoring leader James Harden, of the Houston Rockets, and Los Angeles Clippers point guard Chris Paul. But there were also several who were snubbed including Sacramento center DeMarcus Cousins and Portland point guard Damian Lillard. The game will be held at Madison Square Garden on February 15. Spurs big man and future Hall of Famer Tim Duncan will be making his 15th appearance in the all-star game, tying him with Kevin Garnett and Shaquille O’Neal for third-most all-time. Portland power forward LaMarcus Aldridge, who has put off thumb surgery, rounds out the West roster. Harden is expected to be bumped up to the starting lineup in place of injured Los Angeles Lakers star Kobe Bryant, who is sidelined for the rest of the season after undergoing surgery on his shoulder. There were few surprises among the Eastern Conference reserves, with the first place Atlanta Hawks placing three players in the game for the first time in 35 years. Point guard Jeff Teague made his first all-star game, forward Paul Millsap his second and centre Al Horford will represent the East for the third time. NBA Grizzlies rock Nuggets for fifth straight win ‘We knew what they did to us, so we definitely wanted to come out get off to a good start’ Agencies Los Angeles T he Memphis Grizzlies put the helpless Denver Nuggets in a bear hug and squeezed the life out of them. Zach Randolph had 15 points with 17 rebounds Thursday, and the Grizzlies crushed the visiting Nuggets 99-69 for their fifth straight win. On January 3, the Grizzlies minus injured Randolph suffered a 29-point beat-down by the Nuggets. But with the power forward back in the lineup and dominating inside, they exacted a measure of revenge, matching their biggest blowout of the season. “We knew what they did to us, so we definitely wanted to come out get off to a good start,” Randolph said. “And that’s what we did.” Jeff Green netted 13 points, Spaniard Marc Gasol had 10 and seven rebounds on his 30th birthday for Memphis (34-12), which won for ninth time in the last 10 games. The Grizzlies were further motivated after learning guard Mike Conley and Randolph were snubbed by coaches as Western Conference reserves for next month’s All-Star Game. “Obviously, I want them both there,” said Gasol, voted a firsttime starter by the fans. “I feel like they both deserve it and we’re the second-best team in the West. “All-Stars should be about winning. When you play well and you’re on a winning team you’re supposed to be there.” The Grizzlies started fast and never let up, racing to a 26-11 lead after the opening quarter and 50-35 at halftime. The gap grew to 27 in the third period and Memphis carried a 74-49 cushion into the final frame before coasting to their eighth win in the last nine home games “Everybody’s playing good basketball right now. Our bench is going real good along with starters,” Randolph added. “That’s what we need going forward.” Chicago Bulls Nikola Mirotic of Montenegro (left) and Jimmy Butler (right) defend as Los Angeles Lakers Jeremy Lin drives to the basket in the first half of their game in Los Angeles, California on Thursday. Wilson Chandler and Kenneth Faried netted 10 points apiece for the Nuggets (19-28), who lost for the eighth time in nine contests after putting up a season-low point total. Playing their second game in as many nights, the Nuggets were a no-show following Wednesday’s 93-85 win at New Orleans. “We didn’t compete from the start,” Nuggets coach Brian Shaw said. “I’d have more respect if the guys told me they didn’t feel like playing tonight. One night giving a certain effort and the next night you don’t show up and you don’t compete. I’m sick and tired.” Elsewhere, Jordan Hill scored 26 points and grabbed 12 rebounds, and the Los Angeles Lakers halted a nine-game losing skid with a thrilling doubleovertime 123-118 victory over the Chicago Bulls. Wayne Ellington added 23 points as the Lakers (13-34) avoided matching the 1993-94 club for the franchise’s worst losing run. Jimmy Butler led Chicago (30-18) with 35 points, while SPOTLIGHT forward Pau Gasol, in his first return to Los Angeles since he spurned the Lakers to sign as a free agent with Chicago, had 20 points, 10 rebounds and six assists. Gasol received a standing ovation and a video tribute prior to the contest. Indiana, who had lost their last three home games, scored a combined 67 points during the second and third quarters on their way to a 103-82 victory over the New York Knicks. The Pacers (17-31) caught fire in the middle quarters to outscore New York by 35 during that 24-minute window. Rodney Stuckey led Indiana with 22 points while Roy Hibbert added 18 points and 10 rebounds. Carmelo Anthony had 18 and Lou Amundson added 17 for the Knicks (9-38), who are an NBAworst 3-21 on the road. Jerryd Bayless scored 19 points in 20 minutes, leading the well-balanced Milwaukee Bucks to a 115-100 victory over the Orlando Magic. The Bucks (24-22) had seven players score in double figures while snapping a 17-game losing streak in Orlando. The Magic (15-34) lost their seventh consecutive game. Milwaukee’s John Henson, in his first start of the season, finished with 12 points and 11 rebounds. Results Milwaukee ...........115 Indiana ..................103 Memphis ..............99 LA Lakers ............123 Orlando ............. 100 NY Knicks............82 Denver................... 69 Chicago ................ 118 NHL Olympic hero Brodeur Paquette has 3 goals, hangs up pads Lightning beat Wings AFP Toronto AFP Florida N T ational Hockey League goalie Martin Brodeur, who backstopped Canada to Olympic gold medals and the New Jersey Devils to Stanley Cups titles, announced his retirement on Thursday. The 42-year-old from Montreal ended his brilliant 21-year National Hockey League career after playing in just seven games this season with the St. Louis Blues. He has accepted a front office job with the Blues. “The thing about hockey for me is I am really competitive and I am leaving the game with a big smile on my face,” said Brodeur. “This [front office job] is a great opportunity for me to start something new and I am really excited,” he said. Brodeur holds the all-time goaltending record for most regular season wins at 691. He was 3-3-0 with a 2.87 goalsagainst average and one shutout during his short stint with the Blues. Brodeur represented Canada at four Winter Olympics, winning gold medals in 2002 in Salt Lake City and 2010 in Vancouver. He backstopped New Jersey to three Stanley Cup titles, won the Vezina Trophy as the league’s top goaltender four times and set numerous NHL records. He was initially named back-up in Salt Lake City but won the starting job and the gold for Canada. he Tampa Bay Lightning got an unlikely hat-trick from rookie center Cedric Paquette, sending a strong statement to another Eastern Conference power and jumping into first place with a 5-1 victory over the Detroit Red Wings on Thursday. The Lightning (31-15-4) set a franchise record with their ninth straight home win, getting a big night from Paquette, who came into the night with only six goals all season. Tampa Bay moved above the Red Wings (2812-9) and Islanders with National Hockey League goalie Martin Brodeur. Brodeur started four of six games at the 2006 Turin Games but Canada lost in the quarter-finals to Russia. Four years later in Vancouver he was benched after a loss to the Americans early in the hockey tournament and Canada went on to win gold with a solid defense led by Scott Niedermayer and his replacement Roberto Luongo in net. “I am leaving the game really, really happy,” said Brodeur, who will have the title of senior advisor to the general manager for St. Louis. A lock for the Hockey Hall of Fame, Brodeur holds regular season NHL goaltending records for wins (691), shutouts (125), games played (1,266) and minutes played (74,438). He ranks first in starts (204) and shutouts (24) in all-time playoff history. “It would have been nice to get 700,” Brodeur said about sticking around for a milestone victory. “I wish I could have played more games—all these lockouts I got killed on it. “I know I can play and I can still have fun with this game.” Results Boston .................5 Montreal.............1 Philadelphia...5 Arizona ...............3 Dallas ................... 6 Tampa Bay .....5 Florida .................3 St. Louis .............5 Minnesota ........1 Edmonton .......3 San Jose ........... 6 NY Islanders 2 NY Rangers . 0 Winnipeg ........ 2 Toronto ...............1 Ottawa ............... 3 Detroit ..................1 Columbus ...... 2 Nashville ..........4 Calgary ............ 0 Buffalo ................ 2 Anaheim .......... 3 Tampa Bay Lightning center Cedric Paquette reacts after scoring a hat-trick against the Detroit Red Wings during the second period of an NHL hockey game on Thursday in Tampa, Florida. a conference-leading 66 points while Detroit had their six-game win streak snapped. Elsewhere, the Boston Bruins scored a pair of goals in less than two minutes spanning the second and third periods as they opened the post-All-Star portion of the schedule by beating the New York Islanders 5-2. Kevan Miller snapped a 2-2 tie by scoring with 3.4 seconds left in the second and defenseman Torey Krug scored 1:45 into the third for the Bruins (26-16-7), who also got 43 saves from Tuukka Rask. Center John Tavares and right winger Michael Grabner scored for the Islanders (32-15-1). Max Pacioretty scored with 4:17 remaining in the third period as the Montreal Canadiens emerged with a 1-0 victory against the New York Rangers. Carey Price made 24 saves for his third shutout of the season for Montreal (31-13-3). Rangers (27-15-4) goaltender Henrik Lundqvist was flawless for nearly 46 minutes and finished with 25 saves. Gulf Times Saturday, January 31, 2015 9 SPORT GOLF PHOENIX OPEN Woods struggles in first tournament McIlroy seizes Dubai lead with late birdie blitz AFP Scottsdale T ‘It’s a very bunched leaderboard. I know I’m going to have to go out there and make a bunch of birdies over the weekend like I have the first two days’ iger Woods admitted it had been “a grind” after he laboured to a 73 Thursday in the opening round of the Phoenix Open, his first full-field tournament of the season. Ryan Palmer fired a seven-under 64 to lead the PGA Tour event at TPC Scottsdale, which is just down the road from where the Seattle Seahawks and New England Patriots will meet in tomorrow’s NFL Super Bowl spectacle. But there was nothing spectacular about the form of former world number one Woods, who suffered a bad start and was left tied for 104th as play was suspended by darkness with nine players still on the course. “Physically I am fine,” said Woods, after starting his round with two bogeys, par, then double bogey. “Mentally I am tired from the grind of trying to piece together a round. It takes lot of energy to be able to fight back like that.” Major champions Keegan Bradley and Bubba Watson share second place at six-under. They were joined by Daniel Berger, who was through 16 holes of round one. Former Masters winner Zach Johnson carded a five-under 66. He was in fifth with Martin Laird, Robert Streb and Ben Martin. Woods spent months recuperating from an ongoing back problem before taking part last month at the Hero World Challenge, his charity invitational event, in southern Florida. He shared last in a field of 18. Woods is playing for the first time in an official event since last year’s PGA Championship. He had back surgery last March. ATHLETICS Jeptoo gets two-year ban for doping Rory McIlroy of Northern Ireland plays a shot during the second round of the 2015 Omega Dubai Desert Classic in Dubai yesterday. At bottom, Martin Kaymer in action. AFP Dubai W orld number one Rory McIlroy made three birdies in his last three holes in the second round of the Dubai Desert Classic to take sole possession of the lead yesterday. The Northern Irishman calmly rolled in a 20ft birdie putt on the par-5 18th hole on the Majlis course to finish a sensational bogey-free round of eight-under par 64 as he moved to 14-under par 130 for the tournament. That gave him the breathing space of one shot over Scotland’s in-form Marc Warren, who made nine birdies and two bogies in a round of seven-under par 65. But McIlroy will have to keep his foot on the gas as two players are tied for third a further shot behind, which include his compatriot Graeme McDowell (65) and five players bunched on fifth place on 133, including defending champion Stephen Gallacher (67), the current leader of the Race to Dubai, Danny Willett (66) and England’s Lee Westwood (68). McIlroy has already made 15 birdies in the first two rounds, and he was under no illusion that he needed more of the same over the weekend if he wanted to stay ahead of the chasing pack. “It’s a very bunched leaderboard. I know I’m going to have to go out there and make a bunch of birdies over the weekend like I have the first two days,” said McIlroy, who is leading the tournament for the fifth time in eight appearances. “This course suits my game style: aggressive and go at the pins. The greens, even though it got a little bit crusty out there, it’s still quite receptive. “You can fire at pins and get aggressive, and with the high ball flight that I have, it sort of plays into my hands.” The Ulsterman hit 17 out of 18 greens in regulation and was delighted with his overall play. “I felt like I played very nicely today. Couldn’t ask for much more, bogey-free, made birdies and set myself up for a good run over the next couple days,” added McIlroy. “I felt like I played okay yesterday. I didn’t play my best but I definitely improved from tee to green out there and was able to make some putts.” The 33-year-old Warren, who moved up to 56th in the world rankings after his runners-up finish in last week’s Qatar Masters, could secure his first Masters invitation if he has another good finish over the weekend. The Scotsman started the day with a birdie on the 10th hole, and caught fire after his first bogey on the 12th. He then made five birdies over his next six holes, and on the much tougher front nine of the course, he made three more birdies and a bogey. Warren appeared before the media with his two-year-old son Archie, whom he credited for most of his recent success. “Since the wee man has come along the last few years have been pretty strong for me and takes a bit of pressure off you I suppose in a way that no matter how your day’s went, he’s generally quite happy to see me,” said Warren, who has already qualified for the WGC-Cadillac Championship at Doral. “He helps me totally forget about golf, as opposed to kind of thinking about it at nighttime or anything like that.” Three-time Desert Classic champion Ernie Els dodged a bullet and three late birdies helped him make it to the weekend at two-under par 142, which was the cut-line. However, world number six Sergio Garcia will make an early exit after rounds of 75 and 71 meant he missed the cut. AFP Nairobi T op Kenyan female marathon runner Rita Jeptoo has been handed a two-year ban after being caught doping with the banned blood-boosting hormone EPO, officials said yesterday. The suspension, announced by the local governing body Athletics Kenya, was the minimum mandatory punishment she was facing under international anti-doping regulations in place when she was caught in an out-of competition test last year. Jeptoo, winner of the last two consecutive Boston and Chicago marathons, is the biggest name in Kenyan athletics to have been caught cheating and the scandal has cast a shadow over the achievements of the east African distance running powerhouse. “Rita Jeptoo has been banned for two years, effective from 30th October 2014 to 29th October 2016, following the results of the A and B samples which showed she had used the prohibited substance EPO,” Athletics Kenya’s chief executive Isaac Mwangi told AFP. Athletes caught doping after January 1st this year now face a mandatory four-year ban. “Athletics Kenya AK held two workshops in 2013 in Eldoret to educate the top athletes on the issue of drugs. Rita’s ignorance has been her downfall,” said Noah Ngeny, AK’s athletes commission chair. FORMULA ONE Vettel asks for patience as Ferrari unveil new car DPA Berlin N ew Ferrari driver Sebastian Vettel has admitted he is not expecting immediate success with their 2015 Formula One car, which was unveiled in a video presentation yesterday. The SF15-T, to be driven by four-times world champion Vettel and teammate Kimi Raikkonen, features a distinctive long flat nose and revised sidepods but the German believes the Italians would be content with just one win this season after a woeful 2014. “I think we would be happy but of course we would be happier if we win more. As I said you have to be realistic,” Vettel, who quit Red Bull at the end of last season to join Ferrari, told the team’s website. “There is a lot of change going on, new people in new positions - including myself - so it always takes a bit of time to settle in until you really start to make proper progress. “I am confident we are going in the right direction but it would be wrong to immediately expect a lot. We need to remember we are coming from a 2014 season where there was one team very dominant, so it will be very difficult to arrive there from the beginning.” Drivers Kimi Raikkonen (L) of Finland and Sebastian Vettel of Germany pose with Ferrari’s new car in Maranello, Italy. The car is in the Italian team’s customary red but features black markings on the sides and rear. Ferrari, under new team boss Maurizio Arrivabene, will test the car for the first time tomorrow at pre-season testing in Jerez, southern Spain, with the first race in Australia on March 15. Finn Raikkonen, the last driver to win the world championship for Ferrari in 2007, reflected on their 2014 struggles. “Sometimes you have years that go like that, everything seems to be a bit difficult,” he said. “We understood a lot of things and hopefully this year we can turn things around, as a team be strong, and get more where we should be little by little.” Ferrari’s last race victory goes back to May 2013 through Fernando Alonso, who left the team at the end of last season to join McLaren. They finished last season fourth in the constructor standings as Mercedes and world champion Lewis Hamilton ran away with the championship. QFormula One minnows Sauber outlined their ambitions for the upcoming season yesterday - to win some points which is something they failed to do in 2014. An all new driver line-up - Swede Marcus Ericsson and F1 rookie Brazilian Felipe Nasr take over from Adrian Sutil and Esteban Guttierez, the Mexican who has moved to Ferrari as a test driver. Team Principal Monisha Kaltenborn, in an interview on Sauber’s official website, commented: “2014 was a very disappointing year. “However, this is in the past, and we now fo- cus on what comes next. We have learnt our lessons and are confident for the new season. “We have to improve, and be able to fight for championship points.” Sauber struggled to cope with the dramatically revised technical landscape last term, and hope that 2015 will prove less of a headache for their mechanics. Their new C34 car will be put through its paces in the first series of pre-season testing starting at the Spanish circuit of Jerez from Sunday. “Some components are still from the Sauber C33 and will be successively replaced by new parts,” said chief designer Eric Gandelin. He added: “We will use the time up to Melbourne to ensure we’re as competitive as possible when we line up on the grid for the season opener.” Ericsson, who moved from Caterham, feels he is in the “perfect environment” at Sauber to develop as a F1 driver. On the team’s objectives he said: ‘Formula One it is difficult to have precise targets, as it depends on the overall package. It is clear that we want to be fighting for points.” Nasr, who gets his shot in the big time after evolving as a test driver for Williams, said: “In my rookie season there is a lot to learn, and especially as I have not yet driven on some circuits yet.” 10 Gulf Times Saturday, January 31, 2015 FOOTBALL AFRICAN NATIONS CUP LA LIGA Hosts target semis as Congos collide Moyes looking to test Real mettle sans star Ronaldo ‘We now have a side made up 100 per cent of players from Equatorial Guinea who are willing to defend the colours of their country,’ said Argentine coach Becker This file photo shows Real Sociedad’s new coach David Moyes posing with a scarf of his new club during his official presentation. AFP Madrid D Equatorial Guinea’s head coach Esteban Becker of Argentina celebrates after his team scored a goal during their Group A match against Gabon at the African Cup of Nations. AFP Bata H osts Equatorial Guinea are hoping the decision to relocate today’s Africa Cup of Nations quarter-final against Tunisia to Bata gives them the edge over the Carthage Eagles. The Nzalang Nacional were initially due to tackle Tunisia in Ebebiyin, more than 200 kilometres by road inland from Bata, before tournament organisers moved it to the port city, citing concerns over the pitch. However, there is little doubt that the tiny 5,000-seat stadium in Ebebiyin would have been overrun had the game gone ahead there rather than in the 35,000-capacity Estadio de Bata. The red-clad local fans will be eager to see Equatorial Guinea make history by reaching the last four for the first time after they were trounced 3-0 by the Ivory Coast in Malabo at the same stage of the competition three years ago. And Tunisia coach Georges Leekens knows that the noisy Equatorial Guinea support will create an intimidating atmosphere for his side today. “It will be difficult for us especially with their fans behind them, but I am positive in all circumstances,” said the Belgian. “They have a balanced team and are so fast in attack. They have posted a fantastic performance beyond most expectations.” Nzalang Nacional have yet to lose in Bata and their current side have exceeded expectations after a chaotic build-up that included the appointment of a new coach, Esteban Becker, 10 days before their first match against Congo Brazzaville, as well as a clear-out of naturalised South American players. “We now have a side made up 100 per cent of players from Equatorial Guinea who are willing to defend the colours of their country,” said Argentine coach Becker. Goalkeeper Felipe Ovono, from semiprofessional local side DVO Mongomo has impressed in the home team’s splendid run, particularly against neighbours Fixtures QUARTER-FINALS All times in GMT Today Congo v Congo DR (1600) Tunisia v Equatorial Guinea (1930) Tomorrow Ghana v Guinea (1600) Ivory Coast v Algeria (1930) Gabon in a decisive final group game where he pulled off several crucial saves. Defender Diosdado Mbele has served out a one-match suspension and could return to the starting line-up in place of Estonia-based Daniel Evuy, while the towering Raul Fabiani Bosio could start again up front. The Carthage Eagles of Tunisia were champions on home soil in 2004, but they have not gone past the quarter-finals since. Skipper Yassine Chikaoui has shone at this tournament playing alongside the dangerous Esperance striker Ahmed Akaichi, while Leekens has stuck with a defence led by experienced Etoile du Sahel goalkeeper Aymen Mathlouti and Monaco ace Aymen Abdennour. CHARMED LIFE The first quarter-final between DR Congo and Congo Brazzaville will be the first meeting between the two neighbours in 41 years when Congo Brazzaville beat DRC (then Zaire) 2-1 in Alexandria, Egypt. Claude Le Roy’s Congo are living a charmed life, having been reinstated in the competition only after Rwanda were disqualified for fielding an ineligible player. The Red Devils then qualified for the finals ahead of champions Nigeria and finished top of Group A after a 15-year absence from the tournament. Le Roy has maintained his “incredible” team will keep their feet on the ground and take it a game at a time. On Saturday, DRC will be without injured skipper Youssouf Mulumbu, who also missed the final group game against Tunisia with a hamstring injury. BOTTOMLINE Battling Dortmund fighting for their survival in the Bundesliga bed of nails,” Klopp told German daily Die Welt. Injuries to attacking midfielders Marco Reus and Henrikh Mkhitaryan, especially after Poland striker Robert Lewandowski had left to join Bayern, meant the goals dried up. AFP Dortmund B orussia Dortmund coach Jurgen Klopp admits feeling the pressure as his side resume their fight to stay in Germany’s top flight today at fellow Champions League side Bayer Leverkusen. “My mood is very tense, like it would be just before a very difficult exam, but we are in better shape than we were at the start of the season,” insisted Klopp on Thursday. “Leverkusen is a very important game, one of 17 very important games now for us, but I have been looking forward to this since the final whistle of our last league match at Bremen.” Just over 18 months after losing the 2013 Champions League final to arch-rivals Bayern Munich, Dortmund are second from bottom and threatened with relegation from the Bundesliga. Their domestic fall from grace has been even more dramatic on the back of a successful European campaign which has Dortmund’s head coach Juergen Klopp. seen them reach the Champions League’s last 16. Like most teams, Dortmund had expected to drop a league point here or there after five of the squad returned weary from helping Germany lift a fourth World Cup title last July. But Klopp’s dejected figure on the sidelines, struggling to accept any one of Dortmund’s 10 league defeats, became an alltoo common sight. Having won the 2011 and 2012 German league titles, then finished runners-up to Bayern in 2013 and 2014, Dortmund suddenly found themselves at the wrong end of the table this term. Defeats at Mainz, Schalke and Cologne preceded humiliating loses at Hertha Berlin and Werder Bremen in December. “To finish the first half of the season in 17th was like going on holiday where you sleep on a GROWING INJURY LIST Klopp had to grapple with a growing injury list and loss of form from key players, but the 47-year-old admits there were pre-season hints to Dortmund’s demise. “It was relatively clear that it would be difficult,” he said. “Even during pre-season training we thought: it will be tight to be ready in time. “We picked up six points from our first three games, which was fine. We went to Mainz in late September with the chance of going top, but we ended up losing. “Then it was quickly down to blow after blow and due to more injuries, we could hardly react or have enough time to train and those players we had fit were soon overloaded. “But at the same time, you’re Borussia Dortmund, you are the runners-up, former champions, former Champions League finalists. “Wherever we went, people said “you’ll turn it round”, but on the pitch things turned into a riot in a sporting sense. “It was a downward spiral.” Klopp is the first to admit he made mistakes, for example using players who insisted they were fit to help the cause, when their performances in training suggested otherwise. CEO Hans-Joachim Watzke says their rivals have used Dortmund’s plight to pick up points this season while Bayern run away with the title having built up an 11-point lead. “We’ve seen many teams, who normally pick up points against Bayern Munich, have simply rolled over against them,” Watzke told Munich-based newspaper Sueddeutsche Zeitung. “Instead, those teams (pick up points) against us. “We are now the platform for the others to create something special.” avid Moyes will face the biggest test of his brief spell in charge of Real Sociedad when the Basques visit Real Madrid at the Santiago Bernabeu today. However, the trip for Moyes’s men isn’t quite as daunting as it could have been with three-time World Player of the Year Cristiano Ronaldo banned for kicking out at Cordoba defender Edimar during Madrid’s 2-1 win last weekend. Gareth Bale sealed those crucial three points for Carlo Ancelotti’s men with a late penalty after Ronaldo had been dismissed for the ninth time in his career. And Madrid will need Bale to be on top form whilst their top scorer watches on from the sidelines for the next two games. Bale netted in Ronaldo’s absence through injury when the sides met earlier in the season, but, despite roaring into an early 2-0 lead, Madrid were eventually defeated 4-2. Upsets have been a feature of Sociedad’s season as they have beaten La Liga champions Atletico Madrid and Barcelona as well as Real under three different coaches. Moyes masterminded the latest of those triumphs against Barca early this month, but his side have failed to kick on since with just one win in five games since to remain in the bottom half of the table. Esteban Granero will be returning to face the club where he started his career and all too aware that Sociedad have to be at their best if they are to shock Madrid once more. “January is a difficult month for them because they play a lot of games and it seems that they aren’t in the same form that they were before, but they have too much potential for that to affect us. Moreover, they are playing at the Bernabeu where they have fewer doubts. “We expect to face the best Real Madrid, but if we are also at our best then we have a chance to win.” On top of Ronaldo’s absence, Pepe and Luka Modric remain out injured, but Isco should return in midfield after missing out against Cordoba. Victory for Madrid will open up a four-point gap on Barcelona, who face the in-form Villarreal at the Camp Nou tomorrow. The Catalans have been on fire themselves in recent weeks, scoring 26 times in seven straight wins since starting the year with defeat at Sociedad. Nemyar was the star with a double as Luis Enrique’s men booked their place in the semifinals of the Copa del Rey with a 3-2 win over Atletico Madrid in midweek to already take his tally for the season to 21. Villarreal are unbeaten in 18 games in all competitions stretching back to November, but will have to stop Barca’s devastating attack without the services of Brazilian defender Gabriel Paulista, who joined Arsenal on Wednesday. As part of that deal, Costa Rica forward Joel Campbell has joined the Yellow Submarine on loan for the rest of the season and could feature this weekend. Atletico, meanwhile, will have to lift themselves quickly from the disappointment of being dumped out of the Cup if they are to stay in the title race when they visit Eibar today. Fixtures All times in GMT Today Real Madrid v Real Sociedad 1500 Eibar v Atletico Madrid 1700 Granada CF v Elche 1900 Celta Vigo v Cordoba 2100 Tomorrow Levante v Athletic Club 1100 Almeria v Getafe 1600 Sevilla v Espanyol 1800 Barcelona v Villarreal 2000 Monday Malaga v Valencia 1945 TO ERR IS... Ronaldo accepts he made a mistake, says Ancelotti Portuguese star Cristiano Ronaldo. AFP Madrid R eal Madrid coach Carlo Ancelotti said yesterday that Portuguese star Cristiano Ronaldo admitted he made a mistake and would accept his two-match ban. “He made a mistake and knows it,” Ancelotti said after the World Player of the Year was banned after being sent-off for lashing out at Cordoba defender Edimar during Real Madrid’s 2-1 win last weekend. Ronaldo apologised after the match but will miss home games against Real Sociedad and Sevilla, but will be free to feature against La Liga champions Atletico Madrid on February 7. Madrid currently lead Barcelona by a point at the top of La Liga, but also have a game in hand. “He was the first to say sorry, that clears everything. I think he made a mistake and he knows it only too well,” Ancelotti said. “Now he’s going to serve his penalty and I hope it won’t happen again. He’s going to use this time to work well and be in top form to return for the derby.” Ancelotti dismissed reports that Ronaldo was suffering left knee problems. “The problem he had with the tendon last year has been totally resolved, he has no problem, none at all,” said the Italian. “He always seems at top level to me. It’s possible that some think that he isn’t because of physical problems, but he has none.” Gulf Times Saturday, January 31, 2015 11 FOOTBALL SPOTLIGHT FIFA ELECTIONS Heavyweights to collide in thrilling Asian Cup final Figo, Prince Ali put in FIFA president bids, others coy ‘It takes one second for someone to switch off and hopefully I can make it count’ Former Portuguese international and Inter Milan player Luis Figo. DPA Berlin L uis Figo and Prince Ali Bin al-Hussein announced yesterday that they have submitted their candidatures to become FIFA president but rivals Jerome Champagne and David Ginola have yet to reveal if they have enough nominations. Applicants need nominations from five national associations to be able to challenge Joseph Blatter as head of football’s world governing body ahead of the vote on May 29. Blatter, whose organisation has been mired in corruption allegations, is widely expected to have the necessary backing to run again and former world player of the year Figo said he also had enough nominations ahead of a January 29 deadline. “I am very happy to confirm that my six nominations were delivered to FIFA this week ahead of the deadline,” the Portuguese, 42, wrote on Twitter. “I’d like to thank my colleagues and friends from the nominating FAs and across the football family who have already given me their backing.” Media reports said Denmark, Luxembourg, Macedonia, Montenegro, Poland and Portugal have nominated the former Real Madrid and Barcelona winger. Jordan’s Prince Ali said in a statement he had submitted his candidature and therefore had the necessary support. “The campaign for the presidency of FIFA has entered a new phase, and the number of candidates signals a strong desire for change. It is vital that a genuine debate is held and a consensus is established on key issues,” the FIFA executive committee member said. Dutch FA president Michael van Praag has already submitted his papers and has enough nominations but Frenchmen Champagne and Ginola are being coy. Former France winger Ginola, being paid by an Irish bookmaker to stand, said in a statement on Thursday: “I am awaiting confirmations to complete the required 5 nominations. This is obviously very difficult.” Champagne, a former FIFA official, told dpa: “I am following the official calendar of the election committee.” Blatter, 78, is seeking a fifth term and is liked in Asia, Africa and South America having helped award World Cups to Japan/Korea, South Africa and Brazil but is viewed with suspicion in Europe after the controversial bidding for the 2018 and 2022 events. TOO LONG This combo shows photos of Ki Sung-Yueng of South Korea (left) and Australia’s Tim Cahill (right) during their AFC Asian Cup football matches. AFP Sydney F ree-scoring Australia will seek continental glory in the Asian Cup final today but South Korea could gatecrash the party in a hugely anticipated decider between two of the region’s toughest teams. It could be a case of who blinks first when the heavyweights clash in Sydney, with the hosts seeking a first Asian title since quitting Oceania in 2006, and the Koreans desperate to end a hoodoo stretching back a staggering 55 years. The Socceroos were runners-up to Japan in 2011 and with a tournamentleading 12 goals, they will start as slight favourites, despite losing 1-0 to South Korea in the group phase. In that game, coach Ange Postecoglou opted to rest talisman Tim Cahill and was robbed of captain Mile Jedinak due to an ankle strain. Cahill netted three times in five matches, including a contender for goal of the tournament with his venomous overhead kick in the quarter-final win over China, and he is likely to be central to the plot in one of the biggest games in Australia’s history. “First 45 minutes against China I touched the ball three times,” said Cahill, his country’s record scorer, who fired both goals in the 2-0 win. “The defenders had me wrapped up. But it just takes one second for someone to switch off and hopefully I can be on point to make it count.” Both teams possess players capable of delivering a knockout blow, South Korea hoping golden boy Son Heung-Min can weave his magic as they seek to win a first Asian Cup since 1960 having already defied the odds by reaching the final. Their title drought is a curious anomaly for a nation who stormed to the World Cup semi-finals in 2002, but they have reached the final—their first in 27 years— despite an injury crisis and a flu bug which swept through the squad, forcing medical staff to work overtime. MENTAL BATTLE “It will come down to who’s mentally tougher,” said Korean captain Ki Sungyueng, who has been a calming influence on his side after losing the dynamic pairing of Lee Chung-Yong and Koo Ja-Cheol in the group stages. “It’s incredible we’ve got this far without two of our best players.” South Korea are the first team to reach the Asian Cup final without conceding a goal since Iran in 1976, but their resilience will be severely tested by Australia’s firepower in front of a sell-out crowd of almost 80,000 in Sydney. “We are on the brink of something very special for Korean football,” added Ki. “The boys don’t need me to spell it out to them.” The players were pelted with toffee— a traditional insult in South Korea—on their return from last year’s World Cup, but German coach Uli Stielike has performed wonders since taking over as they look to emulate the under-23 side’s Asian Games gold medal in October. As many as 30,000 Korean “Red Devils” fans are expected to add spice to the atmosphere. Victory for the hosts would be every bit as satisfying after Australia managed just one win in 11 matches last year, while Postecoglou overhauled a side once blessed with outrageous talent by blooding a raft of new players. Critics who were calling for his head just weeks ago have been forced to eat humble pie. “Full credit to the boss,” said Aussie goalkeeper Mathew Ryan. “We’ve just got to put the last piece of the puzzle together with a fairytale ending on Saturday and then it will be a master-plan.” South Korea’s Ki Sung Yueng at a press conference. ASIAN CUP UAE beat Iraq to claim third spot DPA Sydney T he United Arab Emirates claimed third-place at the Asian Cup yesterday by edging a five-goal thriller with Iraq 3-2 in Newcastle thanks to a penalty from the tournament’s leading scorer Ali Mabkhout. Mabkhout himself was brought down by Ahmed Ibrahim in the 56th minute and slotted home the winning goal from the spot. It was his fifth of the competition and makes him favourite to win the golden boot with only today’s final between Australia and South Korea still to be played. The penalty completed a second half comeback for the UAE who had equalized just moments earlier with Ahmed Khalil’s second of the game. Earlier Khalil had opened the scoring only for Waleed Salim and Amjed Kalef to turn things round and give Iraq the advantage at half time. Korea captain Ki says his team is ashamed over title drought UAE’s Ali Ahmed Mabkhout (centre) celebrates with his teammates after scoring the winning goal during the AFC Asian Cup. Finishing third represents the UAE’s best finish at an Asian Cup held outside their own country while 2007 champions Iraq had to settle for fourth. “I was very angry at half-time and it was a very hard talk at half time,” UAE coach Mahdi Ali said. “After we scored the first goal in the first 15 minutes we took it a bit easy and we lost a lot of balls and I was very angry during half-time and I told them you have to go and change the first 30 minutes after half time. “I told them that I had not seen them playing like this and I wanted to see my team in the second half.” After a slow start to a game played in excellent spirit by both sets of players, chances started to flow when Khalil met Mabkhout’s cross on the volley and sent his effort narrowly over. In the 16th minute the UAE did take the lead as Mabkhout broke clear and Omar Abulrahman slid a perfect pass into the path of Khalil who fired beyond Mohammed Hamed without breaking stride to complete a glorious counter-attack. Iraq fought back as captain Younus Mahmood sent a ricochet onto the bar and then watched disbelievingly as keeper Khalid Elisa made an outrageous save to claw out his attempt on the rebound. The equalizer was merely delayed to the half hour though as Salim moved into the box from the right flank and his deflected shot left Elisa helpless. If Elisa was blameless for that goal, he was badly at fault in the 42nd minute as could only parry Ahmed Yasin’s shot to the feet of Kalef who simply couldn’t miss. Mahmood spurned a chance to double the lead within seconds of the restart as he shot offtarget after beating his marker with a neat touch. And that miss proved costly as the UAE immediately seized control. A stunning a chipped pass over the defence from Abdulrahman found Khalil ideally placed to round Hamed and tap home. Poor defending then allowed Mabkhout to bear down on Hamed and when Ibrahim clumsily brought him down from behind, the referee had no choice but to show red and point to the spot. Mabkhout dusted himself down to sent Hamed the wrong way from 12 yards. Iraq tried to rally but, hindred by their numerical disadvantage, failed to create another clear chance as they slipped to defeat. “We have played all the matches positively and passionately,” Iraq coach Radhi Shenaishil said. AFP Sydney S outh Korea skipper Ki Sung-Yueng has spoken of his “shame” at the country’s failure to lift the Asian Cup for 55 years as they prepare for today’s final against hosts Australia. “It’s been too long for Korea to be champions,” the Swansea City midfielder told reporters yesterday. “I have had a big desire to win this competition because we always say Korea is one of the best teams in Asia. “We always go to the World Cup, we reached the (World Cup) semi-finals (in 2002). But on the other hand, we haven’t won the Asian Cup for so long. It’s a bit weird.” “There’s little bit of shame for ourselves that we have never proved that we are the biggest team in Asia,” he added. “This is a great opportunity for us to show people that we can be the champions.” Ki, appointed captain after last year’s early World Cup exit when German Uli Stielike took over as coach, called on South Korea to follow their 1-0 group stage win over Australia by lifting the trophy for the first time since 1960. South Korea won the first two editions of the regional championship but they are yet to add a third win, despite reaching the final in 1972, 1980 and 1988. “We’ve had a lot of injuries during the tournament and we have a lot of young players lacking in experience,” said Ki, who turned up the heat on the Socceroos by claiming all the pressure would be on the home side in front of a sell-out crowd of nearly 80,000 in Sydney. “I don’t think people in Korea expected that we’d reach the final. Of course there is some pressure but we don’t have anything to lose in this game so maybe Australia have more pressure than us. “I told the players it’s a great opportunity, maybe once in a lifetime, to become Asian Cup champions. Everyone is fully motivated.” Perhaps indulging in some late mind games, Stielike claimed he did not know which South Korea would turn up for the final. “I don’t know how we will go out onto the pitch,” shrugged the German. “We have a lot of young players, and it’s the first time they will be in a big final, a big event like this with 80,000 people so I don’t know what the reaction will be.” Saturday, January 31, 2015 SPORT GULF TIMES SPOTLIGHT PUNISHED Chelsea’s Mourinho in combat mode as City come calling ‘We have a big game on Saturday, but I think the feeling of winning, being at Wembley, compensates a little bit the fans after the gift we gave them last weekend’ Chelsea’s Costa gets three-match ban Chelsea’s Diego Costa appears to stamp on Liverpool’s Martin Skrtel. AFP London C Chelsea manager Jose Mourinho reacts during the English Capital One Cup semi-final return leg between Chelsea FC and Liverpool FC at Stamford Bridge in London. AFP London S carred in different ways by their recent cup exploits, Chelsea and Manchester City face off at Stamford Bridge today for a pivotal match in the Premier League title race. Both teams were dumped out of the FA Cup by lower-league opposition last weekend, but while Chelsea responded by beating Liverpool in the League Cup semi-finals on Tuesday, victory came at a price. Diego Costa will miss City’s visit, while Cesc Fabregas and Filipe Luis are both doubts for the game after picking up injuries. Jose Mourinho’s side can expect little sympathy from City, the defending champions, who will fall eight points off the pace if they lose. But the Chelsea manager is already looking to turn the situation to his advantage, battening down the hatches and creating the kind of siege mentality that is his favoured modus operandi. As well as Costa’s charge, Mourinho was himself fined by the Football Association for alleging that there was a medialed “campaign” against his side following a spate of diving allegations. The Portuguese hit out at the media again after Chelsea’s 1-0 win over Liverpool and responded to news of the disciplinary action facing Costa by cancelling his scheduled press conference on Friday. The side-show has helped to bury talk of last weekend’s humiliating home defeat by third-tier Bradford City, who came from 2-0 down to win 4-2 in the FA Cup fourth round. The extra-time win over Liverpool has left its mark on Mourinho’s squad, but he believes the league leaders will not be encumbered by fatigue when they take to the pitch against City. “The players are tired, but when you win, fatigue doesn’t mean the same as when you lose,” he said. “We have a big game on Saturday, but I think the feeling of winning, being at Wembley, compensates a little bit the fans after the gift we gave them last weekend.” OFF THE PACE A run of eight wins in nine games left City dead-level with Chelsea on New Year’s Day, but a draw at Everton and a 2-0 home defeat by Arsenal have seen Manuel Pellegrini’s team fall five points off the pace. Coupled with last weekend’s 2-0 de- EPL Fixtures TODAY (GMT) Hull City v Newcastle United Crystal Palace v Everton Liverpool v West Ham United Man United v Leicester City Stoke City v QPR Sunderland v Burnley West Brom v Tottenham Chelsea v Manchester City (1245) (1500) (1500) (1500) (1500) (1500) (1500) (1730) TOMORROW Arsenal v Aston Villa Southampton v Swansea (1330) (1600) feat by second-tier Middlesbrough, they have now gone three games without a win in all competitions. “We must turn our minds to the Premier League,” said Pellegrini. “We have a difficult game against Chelsea. I hope we can recover during the week and get back to normal.” Ivory Coast’s qualification for the Africa Cup of Nations quarter-finals means City remain without Yaya Toure and new signing Wilfried Bony, but Sergio Aguero has proven his fitness following a knee injury by coming through 90 minutes against Arsenal and Middlesbrough. Former Chelsea midfielder Frank Lampard, who scored an 85th-minute equaliser for City when the teams last met in September, could be making his final appearance at Stamford Bridge. The sight of Chelsea’s all-time record goal-scorer in a City shirt will jar with the London club’s supporters, particularly as he had previously pledged that he would never play for a rival club. But the 36-year-old was applauded by the visiting fans after refusing to celebrate his goal in the reverse fixture and Chelsea Supporters’ Trust chair Tim Rolls has told Britain’s Press Association: “I don’t think anybody is going to boo him.” The stage is set for an attritional battle, with Mourinho likely to select three central midfielders in a bid to overwhelm City pair Fernando and Fernandinho much as Arsenal did at the Etihad Stadium. With Fabregas nursing a tight hamstring, John Mikel Obi and Ramires could both be brought into the team to play alongside Nemanja Matic, which would probably see Oscar drop out. Cesar Azpilicueta will come in for Luis if the Brazilian left-back cannot overcome a calf problem, while Didier Drogba is in line to replace Costa up front. helsea striker Diego Costa has been banned for three matches with immediate effect after being found guilty of a violent conduct charge, the Football Association announced yesterday. The Spain international was suspended after a regulatory commission ruled he had stamped on the ankle of Liverpool’s Emre Can in the 12th minute of Tuesday’s League Cup semi-final second leg at Stamford Bridge, which Chelsea won 1-0 to complete a 2-1 aggregate victory. There is no right of appeal and Costa will now miss Premier League leaders Chelsea’s match at home to title rivals Manchester City on Saturday and subsequent games against Aston Villa and Everton. The incident was reviewed on video by referee Michael Oliver after the match official did not see it in real time. Costa denied the charge of violent conduct levelled against him on Wednesday ahead of Thursday’s 1800 GMT deadline. However, the charge was upheld yesterday and Costa banned immediately. “Diego Costa will serve a three-match suspension with immediate effect after a charge of violent conduct against him was found proven by an independent regulatory commission today (Friday),” said a statement issued by the Football Association, the English game’s governing body. “The Chelsea forward had denied the charge in relation to an on-field incident involving Liverpool’s Emre Can which occurred in the 12th minute of the League Cup semi-final second leg at Stamford Bridge on Tuesday, January 27, 2015. “The incident was not seen by the match officials but caught on video.” ‘ABSOLUTELY ACCIDENTAL’ Reaction to the incidents involving Costa and Can and Liverpool’s Martin Skrtel, over which the FA took no action, dominated the aftermath of a game where Branislav Ivanovic scored an extra-time winner. Liverpool manager Brendan Rodgers said the Brazil-born Costa’s challenge on Can was “poor” and could have caused a “nasty” injury. But Chelsea boss Jose Mourinho said the two incidents had been “absolutely accidental” and blamed television pundits for whipping up controversy over what had happened. Chelsea, seemingly unwilling to make any further comment about the issue before a decision was reached, cancelled Friday’s prematch news conference—even though they are obliged to hold one under Premier League rules. That move came just days after Mourinho was fined £25,000 ($38,000, 34,500 euros) by the FA after he claimed Chelsea were the victims of a media-led “campaign” over diving allegations that was putting referees under pressure. Cancelling the press conference could also lead to a fine as Premier League rules state clubs must ensure managers present themselves on a Thursday or Friday before a weekend game “save for exceptional circumstances”. Costa has been in superb form for Chelsea this season, having scored 17 goals in 19 Premier League appearances thus far and his absence against Manchester City will be a blow to Chelsea. The London club currently lead second-placed City, the reigning champions, by five points and a Chelsea victory on Saturday would put them eight points in front with 15 games of the league season remaining. GET INSPIRED Spur’s Kane urges team to harness the Cup momentum BOTTOMLINE Manchester United ready to fight for top four spot, says Valencia AFP Manchester M anchester United winger Antonio Valencia has warned his teammates that the hard work starts now in their bid to secure a top four finish in the Premier League. Louis van Gaal’s side hold the final Champions League berth as they prepare for today’s home fixture against lowly Leicester, but they are just a point ahead of fifth-placed Arsenal. The Gunners, on a four-match winning run, face Aston Villa at the Emirates Stadium tomorrow and Valencia knows the race is just starting to heat up. “It’s very open and quite tight in those top spots,” Ecuador international Valencia said. “We’re seven points behind second place Manchester United manager Louis van Gaal. and then a couple of teams are three or four points below us. “We must fight hard in the remaining games to finish as high as possible. “It’s a long season and we’ve picked ourselves up of late, so we need to keep the results coming for the fans. “We’ve got tough games coming up against very good teams and rivals for our position but, if we keep the concentration high, we can achieve our aim of a topfour finish.” United missed out on European football for the first time in 25 years when they finished seventh at the end of a campaign of struggle, largely overseen by previous manager David Moyes. Despite a sluggish start to the season under van Gaal, Moyes’ successor, United have put themselves in contention to end their season-long absence from continental competition with a run of one defeat in 13 matches. Valencia believes new signings Angel Di Maria, Radamel Falcao and Marcos Rojo have settled well in to the United set up, despite each suffering injury problems in the first half of the campaign. “Angel, Rojo and Falcao are terrific. They’ve all settled quickly into the group and I think they’re all really enjoying life here,” Valencia said. “We’ve got a top bunch of lads. We all get along really well, the atmosphere is great but it’s always been great here.” United were held to a disappointing goalless draw by League Two club Cambridge United in the FA Cup fourth round last Friday and van Gaal will hope his players are more incisive against Nigel Pearson’s side, who are fighting for survival in the Premier League. Wayne Rooney and Juan Mata are expected to be recalled to the United squad after being rested for the FA Cup match, while defender Jonny Evans remains a doubt after missing the match through injury. Leicester manager Nigel Pearson admits he wants to sign further players before Monday’s transfer deadline but is unsure whether they will materialise. “I don’t know if we will see anymore,” said Pearson. “Maybe, maybe not. You’re not getting nothing more from me. Tottenham Hotspur’s Harry Kane (left) during Capital One Cup tie. AFP London O n a high after reaching the League Cup final in mid-week, Tottenham Hotspur begin an important run of Premier League fixtures today with a game at West Bromwich Albion. An 87th-minute goal from Christian Eriksen at Sheffield United on Wednesday night saw Mauricio Pochettino’s side through to the final of the League Cup at the third-tier club’s expense. That booked them a Wembley date with Chelsea on March 1, part of a sequence of matches that also includes a home-andaway showdown in the Europa League with Fiorentina. Victory in this year’s Europa League will yield a place in the Champions League, but with the trip to The Hawthorns offering an opportunity to leapfrog fifthplace Arsenal, who play tomorrow, Spurs are alive and kicking in the fight to secure qualification via the league. “We’re going to enjoy this moment now, but we know we’re back on it on Saturday,” said striker Harry Kane, Spurs’ England Under-21 striker, who has 18 goals to his name this season. “We’ve got an important game so we want to take this momentum and push on up the league.” Much of Tottenham’s recent success has been built on goals by Eriksen, whose habit of deciding games late on will not have gone unnoticed by West Brom manager Tony Pulis. The Denmark international claimed a brace at Sheffield United and has now scored decisive goals in the last three minutes of a match four times in his last 16 appearances.
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