BUSINESS | Page 1 INDEX QATAR 3 – 9, 32 10 REGION ARAB WORLD 11, 12 INTERNATIONAL 13 – 29 COMMENT BUSINESS 30, 31 1 – 7, 13 – 20 CLASSIFIED 8 – 12 SPORTS 1 – 12 Bronzini, Hosking lead field at Ladies Tour of Qatar DOW JONES QE NYMEX 17,195.10 12,117.70 49.23 +30.15 +0.18% +55.60 +0.46% +0.99 +2.05% Latest Figures d he R is bl TA 978 A 1 Q since in GULF TIMES pu Shipyard celebrates its 100th LNG carrier repair SPORT | Page 11 TUESDAY Vol. XXXV No. 9622 February 3, 2015 Rabia II 14, 1436 AH www. gulf-times.com 2 Riyals Family joy InIn brief Brief WORLD | Climate 2014 ‘hottest year on record’, says UN The year 2014 was the hottest on record, part of a “warming trend” that appeared set to continue, the UN’s weather agency said in Geneva yesterday. Average global air temperatures in 2014 were 0.57 degrees Celsius (1.03 degree Fahrenheit) higher than the longterm average of 14 C (57.2 F) for a 1961-1990 reference period, the World Meteorological Organization (WMO) said in a statement. Page 21 BRITAIN | Ties PM acknowledges Saudi Arabia help Saudi Arabia has given information which helped save British lives, Prime Minister David Cameron said in London yesterday. “We have a relationship with Saudi Arabia partly over things like trying to achieve peace in the Middle East but crucially over fighting terrorism ... Since I have been prime minister a piece of information that we have been given by that country has saved potentially hundreds of lives here in Britain,” he said during a question and answer session on Sky news. SPORT | Post Four candidates for FIFA presidency Incumbent Joseph Blatter and three challengers are bidding for the FIFA presidency after Jerome Champagne became the second man to drop out. FIFA said in a statement yesterday that Blatter, Jordan’s Prince Ali bin al-Hussein, former World Player of the Year Luis Figo of Portugal and Dutch football supremo Michael van Praag have been proposed by the member federations. Sport page 12 BUSINESS | America Obama proposes $3.99tn budget President Barack Obama yesterday proposed a $3.99tn budget that drew scorn from Republicans and set up battles over tax reform, infrastructure spending and the quest to prove which party best represents the middle class. Business page 20 Juris Greste, left, the father of Australian journalist Peter Greste, Peter’s brother Andrew Greste and his mother Lois Greste smiling after holding a press conference in Brisbane yesterday after Egypt deported Peter, the award-winning correspondent for Al Jazeera English television, on Sunday after more than 400 days in detention on charges of backing the Muslim Brotherhood. The Greste family expressed their joy at Peter’s release from an Egyptian jail, but said his two colleagues still in prison would not be forgotten. Peter Greste himself urged Egypt to free his jailed colleagues at Al Jazeera, describing his “angst” at having to leave them behind after being released. Greste, 49, was arrested in December 2013, along with colleagues Canadian-Egyptian Mohamed Fahmy and Baher Mohamed of Egypt, in moves that sparked worldwide condemnation. Page 11 Qatar expects tourism boom Q atar’s tourism sector contributed QR13.6bn (about $3.7bn) to the country’s gross domestic product (GDP) in 2013, representing 4% of “Qatar’s non-extraction economy”. The sector also generated 61,000 jobs in the same year, according to the annual report by the Qatar Tourism Authority (QTA). “The economic impact of tourism”, including indirect contributions, totalled QR 28bn (about $7.6bn), comprising 8.3% of Qatar’s non-extraction GDP. QTA noted that more than 2.8mn visitors entered the country in 2014, an 8.2% increase compared with the figures in 2013. QTA recorded a 91% increase in foreign visitors since 2009 with an average annual growth rate of 13.8%. “The tourism industry shows a continued strong performance in 2014 with all key indicators demonstrating improvement and growth compared to 2013,” it added. QTA chairman Issa bin Mohamed al-Mohannadi said Qatar managed to attract visitors from several key markets, including GCC countries, which contributed 40% of the tourists visiting Qatar in 2014. Another 28% of the visitors originated from various parts of Asia and Oceania while 15% of tourists came from European countries. “These impressive results would not have been achieved without the hard work of QTA and its public and private sector partners, based on the principles and objectives set out by the National Tourism Sector Strategy 2030,” said alMohannadi. He expressed confidence that the tourism sector’s achievements would continue to reach greater heights this year through newly-launched initiatives and products. According to the report, visits from all regions of the world have increased substantially over the past five years with Asia Oceania and GCC visitor markets expanding by 107% and 102% respectively since 2009. Visitors from Europe have surged by 82% over the past five years. The report noted that occupancy rates in all hotels increased by 73% in 2014 compared to 65% in 2013. The largest gains were experienced by the five-star hotels segment, which posted a 71% surge compared to 61% in 2013. Al-Mohannadi said the strong increase in demand translated into revenue increases across the entire industry. RevPAR (revenue per available room) increased by 8.3% in 2014 with particularly strong performance in the five and three-star segments, which gained 9.5% and 15.5%, respectively. Economist sees good chance for reform in GCC The current year will witness a new and rare phenomenon in the global economy, called transflation, according to a forecast By Santhosh V Perumal Business Reporter G lobal economy will witness a rare “transflation” and crude is likely to remain weak in the short- to medium-term but it is an opportunity for the Gulf Co-operation Council (GCC) to undertake structural reforms, according to an economist. “Low oil prices represent a great opportunity for the GCC to implement deep structural reforms to decrease reliance on hydrocarbon revenues and take their economies to the next level of their growth trajectory,” said Marie Owens Thomsen, chief economist, Crédit Agricole Private Banking. Highlighting that the dramatic drop in oil prices is a game-changer, with respect to the macroeconomic and market scenarios in 2015 and the medium term, she said as a result of this low price scenario, it is crucial to note that mature countries (as a group) are no longer in recession Marie Owens Thomsen: chief economist, Crédit Agricole. and demand could undoubtedly be stronger, but risks to the downside are manifold. However, the supply side emerges as the main cause for the oil prices drop rather than weak demand, she said, adding that a “too low” oil price adds to the macro picture of rising global instability. Oil prices are likely to stay relatively low in 2015. But demand could evolve rapidly as GDP (gross domestic product) growth is likely to accelerate in context of geopolitical and climatic developments. In this context, 2015 will witness a new and rare phenomenon in the global economy – “transflation”, she said. In other words, it is a situation of deflationary expansion where inflation/prices fall and GDP expands simultaneously. This will entail higher growth and lower inflation/prices in oil importing countries but pose “unique” challenges to oil exporting regions, she said. This “transflation” scenario is expected to be rather short lived, but 2015 will be the one year during which to take advantage of the unique constellation of stronger growth, lower inflation, and low interest rates – a favourable environment for all risk-asset classes. “Volatility is likely to be greater in 2015 as markets struggle to come to terms with this new environment. Investors who dislike marked-tomarket fluctuations would need to adjust their allocations to the new environment,” Thomsen said. In case of a scenario of prolonged decline in oil prices, the GCC region has less to worry as it has solid buffers in terms of foreign exchange reserves and the huge assets of its sovereign wealth funds, according to Christiane Nasr, head of Mena (Middle East and North Africa) Fixed Income and director at the Dubai office, Crédit Agricole Private Banking. Gulf Times Tuesday, February 3, 2015 3 QATAR Sports Minister holds meetings HE the Minister of Youth and Sports Salah bin Ghanem bin Nasser al-Ali held separate meetings with Serbian Minister of Youth and Sports Vanja Udovicic, and Polish Sport Minister Andrzej Biernat in Doha yesterday. The two ministers were in Qatar to attend the final of the 24th Men’s Handball World Championship (Qatar 2015). During the two meetings, co-operation in sports and ways of enhancing relations were discussed. Taxi drivers on strike 70% of residents in 25-64 age group A M ore than 70% of the country’s population are in the 25-64 age group, according to the latest figures of the Ministry of Development Planning & Statistics. The report says that out of the population of 2,269,672 (which is based on November 2014 figures), the age group 25-64 consisted of 1,604,491 people. It said 14.24 % of the residents are in the age group of under-15 and almost 14.04% are in the 1524 age group. The report also said a little over 25% of the country’s population consisted of women (571,945), based on the November figures, which were the highest. A little over 1% are in the 65 or above age group, it said. It was also reported that 547 babies were born to Qatari parents in the month of November and 568 in December last year. The report also said 696 and 658 babies were born in November and December to non-Qatari parents. In the two months of November and December, a total of 575 baby boys and 540 baby girls were born to the citizens. Among the foreigners, 1,426 and 1,433 babies were born in the two months. Among them, 1,505 were boys and 1,354 were girls. Similarly, a total of 397 people died in the two months of November and December. Among them 117 were Qataris and 280 were non-Qataris. There were 39 (or one-third of the total) women among the Qataris who died during the period. Among the 280 for- eigners, there were 74 women. The report also said there were 228 deaths in the month of December against 169 in November. It was reported that a total of 307 marriages took place in the country in December 2014, and of which 166 bridegrooms were Qataris and 141 were non-Qataris. Among the brides, 156 were Qataris and 151 were non-Qataris, it said. According to the ministry reports there were 94 divorces in the month of December and it included 64 cases of Qatari husbands and 56 cases of Qatari women. Among non-Qataris, there were 30 divorces. In the previous month also, there were 64 cases of divorces among the citizens and 42 non-Qataris, it is found. large number of cars belonging to the fleet of Cars Taxis, one of the Karwa franchisees, have been off the road for the last 48 hours as the drivers have gone on a flash strike. Their strike was in protest against the service conditions at the company, it is understood. However, a handful of the company’s taxis, with yellow roof, were seen on the roads despite the protest by a majority of the drivers. It is understood that the drivers were asking for a hike in their commission based on the revenues. It is reportedly the first ‘tools down’ strike by the drivers of the taxi firm, which started operations in October 2014. However, when contacted, a senior official of the taxi firm said there was ‘no strike’ by their drivers and the company’s taxi operations were not paralysed, a claim which was disputed by the drivers. The Cars Taxis, which is one of the four franchisees of Karwa, reportedly has around 450 taxis. The strike has only minimal effect on the public as a large number of private ‘limousine’ services are available these days. Gulf Times Tuesday, February 3, 2015 4 QATAR Commerce Ministry holds workshop Around 50 employees of different government entities took part in a workshop on “Trade and environment agreements at the World Trade Organisation (WTO)” held on February 1 and 2 in Doha. The workshop was organised by the Ministry of Economy and Commerce (MEC) in co-operation with the training centre of WTO. The participating entities included the Ministry of Environment, the Ministry of Municipality and Urban Planning, Qatar Chamber, Qatari Businessmen Association, Qatar Foundation, the Ministry of Energy and Industry, Qatar Petroleum, Qatar University and Friends of the Environment Centre. WTO international experts briefed the participants on the main principles of WTO current trade and environment negotiations, and how to implement them properly. The workshop also tackled a number of related topics such as trade in environmental goods, environment related disputes and the relation between trade and climate change, among other issues. Qatar Biobank conference to discuss personalised healthcare Q atar Biobank, a member of Qatar Foundation, will host its inaugural conference that will explore the development of Qatar’s healthcare and medical research community, at Qatar National Convention Centre on 8th and 9th of this month. The conference entitled ‘Biobanking in the Context of Personalised Healthcare’ will gather local, regional and international experts to discuss the future of personalised healthcare in integration with Biobanking worldwide. Qatar Biobank supports Qatar Foundation’s mission to enhance national innovation and technology through medical research, regarding prevalent health issues in Qatar. Through its collection of samples and information on the health and lifestyles of large numbers of the national population, Qatar Biobank is making vital medical research possible for scientists in Qatar, the region, and the world. “Biobanks are a key component in today’s healthcare sector because they allow us to revolutionise the practice of medicine through personalised care. Qatar Biobank’s continued work to collect quality samples and information will no doubt allow researchers in Qatar and across the region to advance their understanding of human health and diseases to tackle Qatar’s prevailing health issues,” said Dr Hanan al-Kuwari, chairperson of Qatar Biobank’s Board of Trustees. The event will feature indepth sessions about the importance of biobanking and its role in improving healthcare services. The conference will also lay the foundations for future co-operation between leading Qatari and global medical institutions that will contribute to the advancement of local and regional science and medical discovery. “With Qatar’s continued economic and demographic expansion in recent years, it is important to ensure continued health for the local population to safeguard the sustainability of future generations in Qatar, and personalised medicine through biobanking will enable us to do just that,” added Dr Hadi Abderrahim, managing director of Qatar Biobank. Third QA daily Singapore flight from June 1 Q atar Airways is to launch an additional daily flight to Singapore from June 1, 2015, as part of its global expansion drive and to cater to the increase in passenger demand. An airline communique said it will be operating the new additional flight and the existing two daily flights to Singapore with its third, fourth and fifth A350 XWB aircraft, commencing service in June, July and August 2015. With this, Qatar Airways will become the first airline to operate the A350 XWB to Singapore and the Asia Pacific. Global launch customer Qatar Airways’ first A350 XWB, which is one of 80 on order, is currently operating on the Doha–Frankfurt route. The airline’s second A350, joining the fleet later this month, will also commence operations on the Frankfurt route from March 1. With the additional frequency and by operating the world’s newest wide-body aircraft to Singapore, Qatar Airways will further strengthen its position in one of the leading business cities in the Asia Pacific region as a world-class airline providing passengers with a premium travel experience. The new daily flight will depart Doha at 20:25 hrs and arrive in Singapore the next day at 09:15 hrs, followed by a quick turnaround from Singapore at 10:40 hrs and returning to Doha the same day at 13:15 hrs. “Qatar Airways is proud to be the first airline in the world to introduce the next generation A350 XWB aircraft to Asia, redefining the travel experience of our passengers,” said Qatar Airways Group Chief Executive Akbar al-Baker. “We are also delighted to add another flight to this important and strategic route which will provide our Singapore-based passengers with even more options when they travel on business or leisure to key destinations in Europe and the Americas that include London, Paris, Frankfurt, Rome, Milan, New York, Chicago and Houston.” Passengers will benefit from the new boarding experience achieved by the unique domedesign entrance with welcome light distribution, added the airline statement. The business class cabin has 36 seats in a 1-2-1 configuration featuring an 80” full flat bed and 17” HD in-flight entertainment screen. The economy class features 247 18-inch wide seats in a 3-3-3 configuration, each with a 10.6” inflight entertainment screen, and more space at shoulder level for passengers in window seats due to the vertical side wall panel design. Doha – Singapore Schedules from June 1, 2015: Departure (Doha) QR944 at 02:25am, arriving in Singapore at 15:15 Departure (Singapore) QR945 02:30, arriving in Doha at 05:05 Departure ( Doha) QR938 at 07:00, arriving in Singapore at 19:50 Departure (Singapore) QR939 at 21:20, arriving in Doha at 23:55 Departure (Doha) QR942 at 20:25, arriving in Singapore at 09:15 (next day) Departure (Singapore) QR943 10:40, arriving in Doha at 13:15. Official Emir endorses Cabinet decisions HH the Emir Sheikh Tamim bin Hamad al-Thani endorsed the following Cabinet decisions yesterday: 1. Decision No 2 of 2015 enforcing provisions of Law No 24 on retirement and pensions on Qataris working at the Behavioral Health Support Centre. 2. Decision No 3 of 2015 setting up the Tenders Committee at the Ministry of Youth and Sports. 3. Decision No 4 of 2015 setting up the Tenders Committee at the Ministry of Communications and Information Technology. 4. Decision No 5 of 2015 setting up the Tenders Committee at the Ministry of Transport. 5. Decision No 6 of 2015 setting up the Tenders Committee at the Ministry of Justice. Emir issues decrees HH the Emir Sheikh Tamim bin Hamad al-Thani yesterday issued the following decrees: 1. Emiri Decree No 5 of 2015 endorsing an air transport agreement between the governments of Qatar and Argentina, signed in Buenos Aires on 18.1.2010. 2. Emiri Decree No 7 of 2015 endorsing a co-operation agreement in the legal field between the Ministry of Justice of Qatar and the Ministry of Justice of Georgia signed in Doha on 22.4.2014. 3. Emiri Decree No 8 of 2015 endorsing a Memorandum of Understanding on co-operation in the field of energy technology between the Ministry of Energy and Industry of Qatar and the Ministry of Energy of Croatia signed in Zagreb on 5.12.2013. Qatar condoles former German leader HH the Emir Sheikh Tamim bin Hamad al-Thani, HH the Deputy Emir Sheikh Abdullah bin Hamad al-Thani and HE Prime Minister and Minister of Interior Sheikh Abdullah bin Nasser bin Khalifa al-Thani have sent cables to German President Joachim Gauck and German Chancellor Angela Merkel condoling the death of former German president Richard von Weizsaecker. Advisory Council holds meeting The Advisory Council yesterday held its weekly meeting under HE the Advisory Council Speaker Mohamed bin Mubarak al-Khulaifi. Later, the council discussed amending some of the provisions of law No. 19 of 2007. They agreed to present the law to the Committee of Internal and Foreign Affairs to examine and present a report at a later date. Meanwhile, Advisory Council’s Interior and External Affairs Committee held its 34th regular session yesterday. The committee unanimously re-elected Mohamed Abdullah al-Sulaiti as its rapporteur. Then the committee studied a draft law amending some provisions of the traffic law issued by Decree No 19 of 2007 and decided to submit its report thereon to the Advisory Council. Speaker meets UK ambassador Speaker of the Advisory Council Mohamed bin Mubarak al-Khulaifi yesterday held a meeting with Ambassador of the United Kingdom in Doha Nicolas Dasinter Hopton. They discussed bilateral relations in the parliamentary field. HE the Advisory Council Secretary-General Fahad bin Mubarak al-Khayareen attended the meeting. 6 Gulf Times Tuesday, February 3, 2015 QATAR Online registration for healthcare event begins Hamad Medical Corporation (HMC) has started online registration for this year’s Middle East Forum on Quality and Safety in Healthcare to be held at the Qatar National Convention Centre from May 29. The three-day annual forum has become a showcase for healthcare improvement where renowned experts present innovative methods to improve healthcare quality and safety that have proved to be successful in clinical environments around the world. This year’s forum focuses on enhancing patient engagement practices and establishing better patient flows across healthcare delivery systems, as well as implementing specialised intervention programmes to deliver improved patient outcomes. Held in partnership with the Institute for Healthcare Improvement (IHI), the Middle East Forum provides hospital administrators, doctors, nurses, allied health professionals, and students in health disciplines with a unique opportunity to network and collaborate on a large scale, with more than 30 workshop sessions and several keynote addresses. To register online, participants can log on to the http://ihimeforum.hamad.qa website. Dr Abdullatif al-Khal, HMC’s deputy chief, said the forum has grown significantly year on year, and that the number of available places in the different sessions is limited. “The Middle East Forum has become an important event for healthcare professionals in Qatar and the region, so it is important that those hoping to attend the Forum register early to ensure they can select the sessions that interest them most. Many of the sessions are designed to be interactive and consequently space is limited,” said Dr al-Khal. Officials at the opening session of the training workshop. Workshop discusses topics on UN Congress A workshop on the preparations for the 13th UN Congress on Crime Prevention and Criminal Justice has started at the Civil Defence officers’ club in Doha. The congress will be held in Qatar from April 12 to 19. The four-day training workshop was inaugurated by Maj Gen Abdullah Yusuf al-Mal, Adviser to HE Minister of Interior. Maj Gen al-Mal is also the chairman of the preparatory committee of the UN Congress, which is held in a GCC country for the first time in over 60 years. The inaugural ceremony on Sunday was attended by Dr Ahmad Hassan al-Hamadi, vice chairman of the committee and Brig Badr Ibrahim al-Ghanim, director of the Technical Office of the Minister of Interior. The participants include members of the organising committee, officers from MoI and representatives from the Foreign Ministry, Public Prosecution and General Secretariat of the Council of Ministers. Speaking at the opening session, Maj Gen al-Mal said that the topics involved in the preparation of the congress were prepared in accordance with joint studies done by the concerned bodies from the Interior and Foreign Ministries. He added that Qatar had made all preparations for the success- ful holding of the congress in accordance with the decisions of the ministries of Interior, Justice and Foreign Affairs along with Qatar Foundation and Public Prosecution. He pointed that Qatar had presented two initiatives concerned with the conference. The first one is the youth forum to be held on April 7-9 that precedes the congress. A high-level meet also will be held for the first time during April 12-14 which will be attended by the heads of many countries and delegates of the Foreign and Justice ministries and Public Prosecutions from different states. An introductory presentation was made in the workshop by an officer from the United Nations Office on Drugs and Crime on the activities of the UNODC and UN policy-making in the field of crime prevention and criminal justice. The second presentation dealt with the Vienna convention which works to put forward policies and standards to combat crime and criminal justice. Recommendations have been submitted at the opening of the UN session in accordance with the different levels to approve all matters relating to the fight against corruption and human trafficking, illegal immigration and trafficking in drugs. He added that these decisions are based on what has been dis- cussed in Vienna, referring to the importance of the Doha Declaration. The second session dealt with the conference and its preparatory phase with reference to the regional preparatory meetings, and provisional agenda and topics under discussion and the structure of the preliminary procedures and consultations for the conference and other important sessions and meetings. The workshop will conclude tomorrow. The final day’s session will discuss the United Nations conventions on international crime and logistics and issues related to preparing the 13th UN Congress. Nojoom loyalty programme has Jumbo Electronics as new partner O oredoo loyalty programme Nojoom has added its newest partner, Jumbo Electronics, as the company looks to continue to expand its range of partners in 2015. With the new partnership, Nojoom members will be able to earn and redeem Nojoom Points with Jumbo Electronics’ shops across Qatar. As an added bonus to commemorate the launch, members who earn or redeem points from now until March 4 will be automatically entered into a special draw where 10 lucky members will win a range of incredible prizes including smart TVs, home theatre systems, smartphones and more. Ahmed Ali al-Mohannadi, director (Customer experience and segmentation) Ooredoo, said: “Nojoom is making sure we kick off 2015 with new partners offers, deals and competitions that truly reward our customers. We want this year to be our best-ever and teaming with Jumbo Electronics will mean our range of rewards just got even bigger.” C V Rappai, Jumbo Electronics CEO said: “Jumbo Electronics and Ooredoo both believe in the power of technology, which is why we are delighted to partner with Nojoom to give customers the best deals in Qatar on quality electronic such as mobile phones and household appliances.” Al-Mohannadi with Rappai after signing an agreement adding Jumbo Electronics as Nojoom’s newest partner. Jumbo Electronics offers innovative, world-class electronics, communication and digital solutions, with 16 branches available in locations such as the Al Nasser, City Center, Salwa Road and Airport Road. This addition to the growing list of Nojoom partners expands the range of electronic and digital service options available, giving members an abundance of choices to shop around and find the best deals. Members will earn 1 Nojoom point for every QR6 spent at Jumbo Electronics. Moreover, members can choose to redeem their points towards their purchase at Jumbo Electronics from voucher denominations starting at QR50. Every Ooredoo customer with a Qatar ID can enrol into Nojoom, and redemptions can be made following Nojoom’s redemption channels by logging into their account at www.ooredoo.qa/ nojoom or by downloading the Ooredoo App. Alfardan Automobiles celebrates al-Attiyah’s Dakar Rally victory J ust days after winning this year’s Dakar Rally, one of the greatest and toughest motor races in the world, Nasser al-Attiyah has returned from South America to join Alfardan Automobiles in celebrating his epic victory in the MINI ALL4 Racing car. Alfardan Group president and CEO Omar Alfardan and Alfardan Group Automotive Operations chief operating officer Mohamed Kandeel personally welcomed al-Attiyah at a cake cutting ceremony held yesterday at the BMW Group importer’s new MINI-dedicated showroom. Alfardan said he was proud that MINI ALL4 Racing had continued its success story at one of the toughest races in motorsport - with 2015 being its fourth consecutive win - and that it Alfardan Group president and CEO Omar Alfardan (right) and Qatari champion Nasser al-Attiyah led the cake cutting ceremony to celebrate the latter’s Dakar Rally win recently. illustrated the scale of the brand’s ability to build incredible cars. “We are honoured to welcome Nasser al-Attiyah to our new MINI showroom to commemorate his hard fought win at the Dakar Rally,” he noted. “We believe he is a true inspiration to the State of Qatar, becoming an idol to many young Qataris to strive towards success and victory.” “His perseverance and dedication continue to echo long after the competition’s conclusion,” added Alfardan. Al-Attiyah said the MINI ALL4 Racing itself has proven its ability against some of the top rally cars and on some of the toughest roads in the world. Al-Attiyah and his French co-driver Mathieu Baumel clinched victory after a gruelling 9,000km race spanning Argentina, Chile and Bolivia. 8 Gulf Times Tuesday, February 3, 2015 QATAR Envoy hints at lifting of Brazilian beef ban Phantom Coupe By Joey Aguilar Staff Reporter Rolls-Royce Bespoke models will be on display at Doha show T R olls-Royce Motor Cars Doha, the sole authorised dealer of Rolls-Royce cars in Qatar, is set to display two exceptional Bespoke vehicles at the 2015 Qatar Motor Show, beginning on February 6. Phantom Coupé and Wraith will take centrestage at the fifth edition of the country’s premier motoring event. “The Rolls-Royce Bespoke Programme proved to be a popular choice for our discerning clientele in 2014 and the two vehicles we have selected to display complement the discerning taste of our Qatari luxury connoisseurs,” said Mohamed Kandeel, chief operating officer, Alfardan Group (automotive operations). The Phantom Coupé has a two-tone theme, combining Arabian Blue colour with an English White bonnet and roof, and a Crème Light coachline. The interior of the vehicle features luxurious Crème Light leather seats with Navy Blue seat piping, steering wheel and headrest monograms. The Phantom Coupé also features a stunning Star Headliner, completing the ultra-luxury aura of the car. Alongside the Bespoke Phan- tom Coupé will be the most powerful and dynamic car ever produced by the ultra-luxury marque: the Rolls-Royce Wraith. Since its introduction to the market in the fourth quarter of 2013, Wraith has experienced an exceptional popularity on a global, regional and local level, attracting a diverse clientele. Wraith combines automotive and engineering excellence with the pinnacle of luxury, capturing the interest of a younger, more dynamic audience. The vehicle comes with English White Exterior and Consort Red coachline. The bespoke theme is carried on throughout the interior of Wraith. It combines Consort Red leather with Seashell Piping and headrest monograms, and features Canadel Panelling in beautiful open grain wood throughout the cabin, delicately curved around the contours of the door. Each piece is orientated at 55 degrees then carefully bookmatched to create a flawless mirror image through the centre line of the car, further displaying the Bespoke artistry and attention to detail applied by the ultraluxury marque. he “imminent” lifting of the ban on Brazilian beef in Saudi Arabia is a good indication that Qatar and other GCC countries may follow suit, Brazilian charge d’affaires Viviane Rios Balbino has said. Late last year, a high-level delegation from Brazil, including the minister of agriculture and livestock, called on the Saudi Arabia agriculture minister and executive president of Saudi Food and Drugs Authority (SFDA). The embassy official said both have agreed on the SFDA health certificate for export of meat and meat products to Saudi Arabia and on the additional steps to reopen the Saudi market for Brazilian beef. “It may be that the GCC authorities are trying to coordinate a unified position towards the ban,” said the embassy official, reiterating that “the meat is absolutely safe.” “We believe that lifting of the ban in Saudi will pave the way for a GCC-wide reopening of the market.” In Qatar, the ban was placed in 2013 following the announcement by the Brazilian government of one isolated case of a typical bovine spongiform encephalopathy (BSE). It was detected in the brain of an animal that died of other causes. Balbino noted that despite the World Animal Health Organisa- Viviane Rios Balbino tion declaring Brazil clear of the disease, some governments at the time decided to take measures to ban Brazilian beef. The embassy in Doha also provided the needed technical information to Qatari authorities concerned to prove that there is no reason for fear against the quality of Brazilian beef, according to the embassy official. “We are looking forward to working with Qatar’s Ministry of the Environment and the Supreme Council of Health to provide any additional information about the meat,” she said. Balbino pointed out that Brazilian beef is internationally recognised for its quality. “Our cattle are grass-fed, therefore the protein in the meat is high. The country is equipped with fully certified halal facilities, which makes Brazil a ready competitor for the regional market.” “In March 2013, a delegation of specialists from the Brazilian ministry of agriculture and live- stock met with officials of Qatar’s Ministry of Environment. They were satisfied that the incident was an isolated one,” said Balbino, adding: “The case in question was of specialists call ‘a typical BSE,’ which is a noncontagious form of the disease. It is not caused by the ingestion of contaminated food, nor does it contaminate the beef and milk from the animal.” Brazil is also a major exporter of poultry and beef to all GCC countries, it is learnt. Brazil exported 36,000 tonnes of chicken meat to Qatar from January to October last year amounting to $60mn. The poultry being offered in most supermarkets in Qatar are from Brazil, holding about 70% of the local market. Commercial Bank unveils campaign for new customers C ommercial Bank has announced an “exciting” new campaign for its ‘Life in Qatar’ customers following the “continued success and popularity” of this tailored banking proposition for expatriates who are soon to arrive in, or have recently relocated to, Qatar. ‘Life in Qatar’, the bank said, is designed to reduce the stress of relocation by helping expatriates settle in faster while providing a wide-range of rewards that now include a “free gift voucher” to furnish their new house. ‘Life in Qatar’ customers with a monthly salary over QR15,000 who open a Commercial Bank account with a credit card will receive a free gift voucher worth up to QR1,000 to help furnishing their new house, redeemable at selected furniture stores. Customers with a monthly salary over QR7,500 a month with an account and credit card are entitled for a furniture voucher worth QR500. With “Life in Qatar”, the process for getting a loan is even easier for new arrivals as they can receive immediate approvals on vehicle and personal loan applications to help them cover essential initial expenses entailed by relocation. ‘Life in Qatar’ provides a unique opportunity for salaried expatriates to ease the burden of moving prior, during and after arrival. Before arrival, expatriates can open their account through online Commercial Bank banking services for remittance services. Commercial Bank’s dedicated website, www.lifeinqatar.com provides reliable information to answer the most frequently asked questions by those intending to relocate and it’s constantly updated to help new residents adapt to living in Qatar. Upon arrival, Commercial Bank debit cards are readily available for collection. ‘Life in Qatar’ also helps customers get instantly connected by providing them a free phone and SIM card; they are also applicable for hotel discounts in Doha. Customers get a free executive service to find a house; up to 30% discount on car rental and various discounts at B/Attitude spa in Doha. For Sadara eligible customers are entitled for airport pickup to a destination of their choice upon arrival. Dean Proctor, executive general manager and head of retail and enterprise, said: “Com- mercial Bank is the original and the leading bank in the market providing a specialised proposition for new arrivals to Qatar. The bank also offers the most comprehensive range of benefits available for salaried expatriates who are about to move and / or have recently relocated to Qatar. “We are extending our rewards even further to cover home furnishing. Geographical transfer from one country to another is always a daunting process, but ‘Life in Qatar’ is designed to smoothen and facilitate expatriates experience before even arriving.” Participants at the concluding function of the QCF winter camp. QCF winter camp ends Q atar Career Fair (QCF), a member of the Qatar Foundation for Education, Science and Community Development, has concluded its first Winter Career Camp 2015. QCF focused on engaging young Qatari students and providing them with a range of practical skills and tools to help them choose the academic path that best suits their interest and potential. All 30 students who participated in the camp were given certificates. Fahad Saad al-Qahtani, group executive director, QF administration, said: “Since its establishment 20 years ago, the Qatar Foundation dedicates its efforts to develop education, research and society in Qatar, in order to realise the Qatar National Vision 2030. It places Qatar at the forefront of nations, as a knowledge-based economy, by unleashing the talents of Qataris and putting them to great service within society.” Abdulla Ahmed al-Mansoori, executive director of Qatar Career Fair, said: “The career fair hopes that the participating students at the Winter Career Camp have benefited from the activities and that they now have a better perspective of the future career they wish to take, assisted by the skills acquired at the different interactive workshops and field visits.” Aisha Mandi al-Tamimi, mother of one of the participants, praised the camp saying: “I was able to examine the programmes at the QCF’s Winter Career Fair and found it outstanding in terms of activities and workshops offered. Therefore, I registered two of my daughters. What has really excited me about this camp other than the workshops, are the field visits to some of the largest companies in Qatar, as it will be useful for my daughters’ in deciding on a future career path.” Physiotherapists attend training course R umailah Hospital, in collaboration with Australia-based Neurodynamic Solutions, organised a training course to develop the neurodynamic skills of physiotherapy specialists at Hamad Medical Corporation (HMC). Neurodynamic relates communication between different parts of the nervous system and is also known for relieving pressures off the limb nerve. Neurodynamic is also a type of hand treatment for pains resulting from the pinch of the limb nerve. About 27 physiotherapy specialists from HMC attended the pioneering four-day workshop held at Medical City. The lecturer at the workshop was Swiss-based physiotherapy specialist Alfio Albasini. Noora al-Mathahika, chief of physiotherapy at HMC, said: “The neurodynamic method is the latest advancement in physiotherapy treatment procedures that relies on releasing the tension of the nerve to eliminate pain.” She stressed that the department is very keen to improve the skills of its physiotherapy specialists by facilitating training courses on new treatment Participants at the training course. techniques. “The workshop was organised for a selection of specialists who handle treatment of joints, spinal cord and muscles,” al-Mathahika added. She said that neurodynamic technique is proving successful in the treatment of back pain, which currently affects more than 60% of all cases, both male and female, admitted by the department. The female clinic receives around 150 to 180 cases daily while the male clinic sees between 250 and 280 cases among those aged from 14 years and above. Al-Mathahika said back pain cases could occur due to accidents or injuries including all kinds of fractures, slip disks, joint replacements, spine correction, joint removal and some movement challenges due to accidents. It can also occur due to sports injuries such as damaged cruciate ligaments. Aymen Ibrahim Rafat, physiotherapy orthopaedics supervisor of male outpatient clinics, Rumailah Hospital said the workshop was within the framework of HMC’s goal of improving and developing its physiotherapy services into best practice through training courses on methods of diagnosis as well as inspection of types of injury. Gulf Times Tuesday, February 3, 2015 9 QATAR Qatar Charity helps thousands in Sudan Q atar Charity has implemented projects worth QR28.1mn for the Republic of Sudan in 2014. The projects benefitted 152,000 persons in ten states, covering areas such as health, relief, water, education, orphanages, shelter and support for women and children. About QR10mn was spent on support for women and the family, with the number of sponsored children rising by 27% to 3481, 2,980 of whom are orphans, as well as 153 poor families, 38 people with disabilities, 207 students and 103 teachers. A variety of activities are carried out for the benefit of the sponsored orphans, benefiting more than 3,000 orphans. They have taken part in recreational trips and health days, in addition to the global orphan event which was attended by more than 1,000 orphans, under the supervision of the Qatars ambassador in Sudan and officials from the Ministry of Social Welfare. Qatar Charity is also building nine homes at a total cost of QR303,000, within the framework of supporting poor families. A total of QR1.1mn was spent on seasonal projects which benefited 71,686 people, including orphans, needy families, people with disabilities and students. These projects have covered several regions of Sudan, and included breakfasts for those fasting, benefitting around 52,892 beneficiaries at a cost of QR677,000, Zakat al-Fitr, for the benefit of 629 people at a cost of QR90,000, sacrificial animals at a cost of QR304,000. Qatar Charity has also intervened in the field of relief, contributing effectively to the flood disaster efforts after the recent QNB exceeds 50% Qatarisation ratio By Peter Alagos Business Reporter Q NB’s Qatarisation ratio in 2014 has exceeded 50% of domestic employees at all levels, including senior leadership positions, QNB Group chairman Ali Shareef al-Emadi has said. “One of QNB’s goals for 2015 is to prioritise the bank’s strategic nationalisation initiative by continuing to lead the banking sector’s efforts to hire Qatari nationals,” al-Emadi announced during the bank’s Ordinary General Assembly on Sunday. Having breached the 50% mark last year, al-Emadi maintained that QNB’s Qatarisation programme has “strong representation of nationals at all levels, which includes senior leadership positions.” In its 2014 annual report, the QNB Group Human Capital Division (GHC) continued to execute “defined strategic initiatives” within the context of the Group’s five-year strategic plan. This led to a growth in workforce with more than 14,500 employees by the end of December 2014, of which, over 2,150 are based in Qatar. “In 2014, GHC focus has been on improving the service to QNB Group employees and strengthening the talent pool to ensure the right people are QNB Group chairman al-Emadi. in the right job at the right time to support the global growth of QNB Group,” the report said. Similar to last year, QNB’s “Global Leadership and Talent Management Programme continued to address ongoing leadership development needs across QNB Group’s expanding international network. The programme was launched in Sudan, South Sudan, Mauritania, Kuwait, and Lebanon. The GHC also installed the Halogen Integrated Talent Management System software, providing inputs for implementing global best practices in employee talent management. QNB’s “Ambassador Programme” also opened opportunities for employees in representing the bank in international operations as part of their career development. “Growing on the previous successes, 2014 saw Qatari nationals deployed to countries such as Singapore, Kuwait, Oman, and Indonesia as part of the Ambassador Programme, the report said. It added, “Individuals from previous placements returned to Qatar and secured roles with increased responsibilities, applying both their overseas experiences to the overall value of QNB Group.” In 2014, the QNB Learning & Development Department increased its focus on supporting employees to gain internationally-recognised certifications as part of QNB Group’s employee value proposition. Successful employees have been certified in a wide range of accreditations, including credit risk, financial analysis, securities and investments, and project management, among others. To further boost its strategic nationalisation initiative, the GHC team attended 10 major career events in 2014, including a UK Career Fair, events at local universities, activities in partnership with the Labour Department, and by hosting QNB Recruitment Open Day. Toyota global stand design for motor show A bdullah Abdulghani and Bros, the authorised dealer of Toyota in Qatar, will feature the company’s new global stand design in the form of a ‘wave in motion’ at the 5th edition of the Qatar Motor Show that begins on Friday. The stand design is dynamic and simple, energetic and pure and is an illustration of the Japanese principle of Seijaku, meaning “active calm” or serenity in the midst of activity. The stand will create an immersive environment that guides the visitors on an exciting journey through stateof-the-art technology: from the large, impressive staging to the small playful design details to a tangible experience of the product itself. A range of Toyota vehicles will be showcased at Exhibition Hall No 8 to promote latest vehicles from its bestselling SUV and sedan range including the latest versions of the FJ TRD, Land Cruiser, Avanza, Yaris Hatchback, Avalon, Camry RZ and 86. Toyota will also display the 86 open concept, which features an automatic multi-layered fabric roof together with a glass rear screen. It folds away neatly behind the fixed rear seats, maintaining the 2 2 layout. Abdullah Abdulghani and Bros. will showcase the FJ Cruiser TRD to focus on Toyota brand campaign ‘The Way I Ride’ to connect with a more youthful audience across the region. The new theme marks the evolution of the Toyota brand and acknowledges its versatility in providing a platform for self-expression to customers across the region. It also highlights their individuality and their uniqueness in the world. The new campaign also marks the second phase of the brand campaign which is based on Toyota’s “brand promise” of Waku Doki and Peace of Mind. The Toyota Land Cruiser will give visitors an opportunity to appreciate its legendary on-road as well as off-road capabilities. It is equipped with a multi-terrain select system offering five modes, which allows the vehicle to adapt to various road conditions for excellent off-road ground covering performance, which also controls Wheel Spin and Wheel Lockup. Some of the beneficiaries of Qatar Charity projects. rains that flooded the River Nile State. In addition, Qatar Charity completed the reconstruction to areas affected by floods that hit Khartoum in 2013, building 21 classrooms and 40 toilets, benefitting over 2,000 students. The total budget for these programmes exceeded QR1.1mn. In the area of income-generating projects, Qatar Charity has implemented 227 projects at a total cost of QR773,000, benefitting 1,589 Sudanese, through interest free loans, in partnership with experienced and efficient local organisations. In the field of health, Qatar Charity spent more than QR1.3mn, that helped over 24,600, and consisted of the construction of three health centres and the organization of a polio vaccination campaign in cooperation with the Arab League. Qatar Charity also arranged the drilling of nine water wells with a further seven currently being implemented, in addition to the distribution of 16 water coolers to hospitals. A total of QR842,055 was spent on water projects, benefiting 8,000 people. Qatar Charity has also implemented projects in the field of education, including projects in mosques and memorisation centres, with a further 19 projects under construction. A project for the distribution of school bags was implemented in the state of North Darfur, benefitting more than 1,000 students. More than QR2.7mn was spent on education projects that benefited some 7,200 people. Qatar Charity’s initiative for the development of Darfur has included a service complex, completed in 2014 and consisting of two schools of basic and secondary education, in addition to a health centre, 15 staff homes, a mosque, a police station, a water point and athletic fields. As part of the Darfur initiative, Qatar Charity has also carried out a number of social harmony projects, as well as economic empowerment, the construction of 30 housing units, part of a social housing project, at a total cost of QR9.3mn, benefiting 10,000 people. 10 Gulf Times Tuesday, February 3, 2015 REGION Yemen drone strike kills four Al Qaeda suspects AFP Sanaa A drone strike killed at least four Al Qaeda suspects in Yemen yesterday, tribal sources said, the third attack in a week after Washington vowed to pursue its anti-militant campaign there. The unmanned aircraft, which only the United States operates in the region, targeted a car carrying “at least four” suspects in Baida province, the sources said. They said the bodies inside the car were left charred. “Loud explosions were heard after the attack,” one source told AFP, saying this could mean the car had been “loaded with arms and explosives”. This was the third such strike since US President Barack Obama on January 25 vowed no let-up in Washington’s campaign against militants in Yemen. Four suspected militants were killed in a similar strike on Saturday, while another raid left three alleged Al Qaeda militants dead on January 26. Both of those attacks were in the southern province of Shabwa. Obama had dismissed suggestions that deepening chaos in Yemen since last month’s resignation of Western-backed President Abd-Rabbu Mansour Hadi had forced a change in Washington’s campaign against Al Qaeda. Obama ruled out US troop deployment in Yemen but said Washington would continue “to go after high value targets inside Yemen”, admitting however that this was “a long, arduous process”. According to the New America Foundation, the United States has carried out more than 110 strikes on targets in Yemen since 2009, mostly using drones. One such attack in September 2011 killed US-Yemeni cleric Anwar al-Awlaki, a leader of Al Qaeda in the Arabian Peninsula Tehran in first launch of satellite since 2012 News channel off air hours after launch Agencies Manama P rogramming at a pan-Arab news channel owned by Saudi Prince Alwaleed bin Talal was unavailable yesterday, hours after its first transmission from Bahrain. The satellite feed of Alarab News Channel showed only promotional material, and an Alarab executive declined to comment. The channel later said on its Twitter account that broadcasting has “stopped for technical and administrative reasons and that it will be back soon”. The head of media at Bahrain’s information ministry, Yusuf Mohamed, said “co-operation with Alarab’s administration is ongoing, in order to resume its broadcasts and complete necessary measures as soon as possible.” His statement, carried by the official BNA news agency, did not elaborate on the causes of the interruption. The channel took to the air at 1300 GMT on Sunday. One of its first segments included a Shia opponent of Bahrain’s rulers, sparking criticism in pro-government daily Akhbar al-Khaleej. The newspaper said it learnt that Alarab was stopped for “not adhering to the norms prevalent in Gulf countries”. In a column in the same newspaper, editor-in-chief Anwar Abdulrahman asked: “Is Alarab really Arab?” He condemned the channel for hosting former member of parliament Khalil Marzouq, who is “radical to the core”. “Resorting to muscle flexing in news coverage, with the hope of proving that you are an independent channel, is not going to work,” he wrote. Alarab entered a crowded field that includes the first regional broadcaster, 19-year-old Al Jazeera. It is also a rival for Dubaibased Al Arabiya, established in 2003 and owned by Saudi Sheikh Waleed al-Ibrahim. Alarab had vowed to be evenhanded in its coverage. “We are not going to take sides,” Jamal Khashoggi, the general manager, said in an interview before the launch. “I think a news channel should not have a political agenda... We should just be a news channel that provides accurate, objective information.” Speaking in 2012 in the wake of the Arab Spring revolts in some Arab countries, Prince Alwaleed told CNN the planned channel was an attempt to fill “an opening for a more pragmatic and logical channel that really takes the centre’s point of view”. Bahrain faced protests in 2011 led by mainly Shia Muslim citizens demanding reforms and more of a share in the government. Authorities have quelled the protests but the kingdom continues to face protests and attacks using home-made explosives from time to time. AFP Tehran I A handout picture released by the Iranian defence ministry shows the launch of the Fajr (Dawn) observation satellite early yesterday. Iran nuclear deal faces mounting hurdles Agencies Tehran T here are some in Tehran convinced a final nuclear deal between Iran and world powers has already been sealed. Others are adamant there will never be a pact. But as uncertainty persists over talks aimed at ending the 12-year standoff on Iran’s disputed atomic programme, hurdles to an agreement are stacking up. In Washington, lawmakers are considering imposing new sanctions on Tehran despite calls from the White House to give the negotiations more time. Hardline Iranian MPs have responded with threats of their own and are drafting two bills that would undermine the talks. With the going already tough—the level of uranium enrichment Iran can conduct and a timetable for lifting sanctions are said to be blocking a deal— analysts say pressure is being ratcheted up. “Those who oppose any diplomacy between Iran and the West are already seeking to end the process,” said Ellie Geranmayeh, an Iran specialist at the European Council on Foreign Relations. “With time, they will gain further ammunition.” Although the June 30 deadline for a final agreement between Iran and the P5+1 powers—Britain, China, France, Russia and the United States plus Germany—is some way off, two earlier deadlines were missed. In the Iranian capital, officials say the United States and other world powers need to show more flexibility in nailing down the hard details of a deal. Iran’s negotiators have given no indication a compromise is in the offing and Supreme Leader Ayatollah Ali Khamenei, who has the final word, last month voiced doubt that the US could be trusted. Israel is lobbying hard against a final deal and Saudi Arabia is also wary, analysts say, and the negotiations could be scuttled if there is no definitive progress soon. The biggest threat, they say, is the possibility of new US sanctions on Iran, which Foreign Minister Mohamed Javad Zarif has said would effectively “torpedo” the talks. “Those who oppose any diplomacy between Iran and the West are already seeking to end the process” Such an outcome is likely the aim of Israeli Prime Minister Benjamin Netanyahu’s address to the US Congress about Iran’s nuclear efforts on March 3. In a signal of White House disapproval at such a high-profile and untimely intervention an outline agreement with Iran is due on March 31 - President Barack Obama will not meet Netanyahu. Two US senators, Republican accused of instigating a string of attacks against the United States. AQAP, which Washington considers the most dangerous branch of the global terror network, also claimed responsibility for the deadly January 7 attack on French satirical weekly Charlie Hebdo. Mark Kirk and Democrat Robert Menendez, have said they will decide by March 24 whether to table new legislation. If they can convince enough Democrats in the Republicancontrolled Congress to back sanctions, they could have the super-majority needed to pass veto-proof legislation. “(Menendez) will have an easier time collecting sponsors if there is no movement in the talks,” Geranmayeh said. In Tehran, MPs are considering two bills, one tearing up an interim deal that has reined in Tehran’s nuclear activities and another allowing the Islamic Republic’s atomic scientists to speed up their operations. Evidence of the souring atmosphere was clear when 21 hardline lawmakers recently condemned Zarif for taking a 15-minute stroll with US Secretary of State John Kerry during a break at negotiations in Geneva. “Aversion to the deal has always had robust and noisy con- stituencies in Tehran and Washington, but both governments need to rise above the din if they want an agreement,” said Siavush Randjbar-Daemi, a lecturer on Iran and the Middle East at Manchester University. Kerry and Zarif may meet again this week in Munich and the two “need to thrash this out directly, hopefully through less controversial walks”, RandjbarDaemi said. Amir Mohebbian, a Tehranbased analyst close to hardliners and several top figures, said the growing pressure could actually push the discussions forward. But too much delay could cost President Hassan Rouhani—who raised hopes of a return to prosperity via a nuclear deal—vital public support. When past deadlines were missed, Rouhani, a moderate in stark contrast to his hardline predecessor Mahmoud Ahmadinejad, went on state television to insist the talks were close to a result. Iranians will now be look- Jail term for Kuwait online activist upheld Kuwait appeals court yesterday upheld a fouryear jail sentence against an online activist for insulting judges on Twitter. A lower court in October handed the jail term to Ahmed Fadhel who was charged with writing comments on Twitter deemed offensive to a number of judges, who then sued him. Yesterday’s verdict is not final as it can still be challenged in the supreme court. Dozens of tweeters have been sentenced to jail terms, mainly for insulting the emir. Dozens of others are still awaiting trial on similar charges. A number of jail terms against online and stateless activists have been issued since the start of 2015. ing for signs of more concrete progress, Mohebbian said. “With the anniversary of the Islamic revolution on February 11, it would be a good time to send a positive signal to Iran’s people.” Rouhani accused opponents on Saturday of effectively “cheering on” the other side in the negotiations with world powers. Rouhani, faced with rising popular concern over his unfulfilled election pledges to fix the economy, blamed hardline interference in part for the talks’ halting progress. “The other side applauds their own, but here in our country, it is not clear what (the critics) are doing. It is as if they are cheering on the rival team,” he told a public gathering, quoted by the official Irna news agency. “And when we ask them what they are going, they answer: ‘We are criticising and criticism is a good thing ... This is not criticism, it is sabotage of national interests and favour for partisan politics,” he said. ran launched an observation satellite yesterday - its first since 2012 - with President Hassan Rouhani declaring it safely entered orbit and that he had personally ordered the mission. The Fajr (Dawn) satellite was successfully placed 450km above Earth, said Al Alam television, an Arabic-language station owned by the Islamic Republic. It is the fourth such satellite launch by Iran, after three others between 2009 and 2012. The satellite was locally made, said the official Irna news agency, as was its launcher, according to Rouhani who noted Iran’s aim is to have no reliance on foreign space technology. “Our scientists have entered a new phase for conquering space. We will continue on this path,” Rouhani said in a short statement on state television. Al Alam said the Fajr satellite, weighing 52kg, would be able to take accurate pictures from space. It took eight minutes to reach orbit and is now linked with its ground-based controllers, state media said. The launch came as Iran started 10 days of celebrations for the 36th anniversary of the Islamic revolution, culminating on February 11, “Victory Day,” when the US-backed shah’s reign officially ended in 1979. Defence Minister General Hossein Dehgan echoed Rouhani’s comments, stating that the 21m and 26 tonne launcher, named Safir-Fajr, shows “the ability of Iran to build satellite launchers”. In February 2010, Iran launched a satellite containing a rat, turtles and insects. Separate missions under Iran’s space programme have seen two capsules launched. One, in January 2013, included a monkey that was recovered alive. Iran’s space activities, however, have sent alarm bells ringing in the international community amid concern over Tehran’s development of technology that could have military purposes. Some Western countries suspect Iran of secretly trying to build an atomic bomb and fear the technology used to launch space rockets could be diverted into developing long-range ballistic missiles, potentially capable of carrying atomic warheads. Tehran has long denied having military goals for its space programme or its nuclear drive, and is currently engaged in talks with the United States and other leading powers to end the standoff over its disputed atomic activities. Embassy resumes services Syrians living in Kuwait wait to renew their passports at their embassy in Kuwait City yesterday after it resumed consular services. The embassy closed its doors after Kuwait joined other Gulf countries in expelling Syrian envoys in February 2012 amid tensions with President Bashar al-Assad’s regime. Gulf Times Tuesday, February 3, 2015 11 ARAB WORLD New Tunisia coalition cabinet includes Islamists AFP Tunis T unisia yesterday presented its new coalition government, dominated by the secular Nidaa Tounes party but also including its Islamist rivals, as it prepares to tackle security problems and a faltering economy. Prime Minister Habib Essid announced the make-up of his cabinet, which had initially been abandoned after the moderate Islamist Ennahda party warned it would vote against a line-up that excluded its members. “We have made changes... to widen the composition of the government with the participation of other political parties,” Essid said. The new team, which includes a minister and three state secretaries from Ennahda, will be put before parliament for a vote of confidence tomorrow. “We have no more time to lose, we are in a race against the clock,” Essid said as he announced the line-up at the presidency. His government will be the first since landmark parliamentary and presidential elections last year that were the first freely contested polls in the country’s history. The anti-Islamist Nidaa Tounes of President Beji Caid Essebsi won the largest number of seats in October’s general election, with Ennahda coming second. But Nidaa Tounes did not secure a majority and Ennahda, which holds 69 of parliament’s 217 seats, had rejected a cabinet in which it was not represented. Political scientist Ahmed Ma- nai said the “almost symbolic” representation of Ennahda would ensure a majority for the government in parliamentary votes and allow Essebsi to “neutralise” the Islamists. Tunisia has struggled to form a stable government since it became the birthplace of the Arab Spring uprisings by ousting long-time dictator Zine El Abidine Ben Ali in 2011. It received international praise for its transition to democracy, in stark contrast to other countries in the region now battling instability after similar revolts. However, the country is mired with a sluggish economy, and unemployment remains stubbornly high, especially among young people. Essebsi has vowed to address economic problems to “realise the promises of the revolution: dignity, employment, health and regional equality”. In addition, security forces continue to battle militants who have claimed responsibility for a series of attacks on police and soldiers that have killed dozens of people since Ben Ali’s ouster. Yesterday’s cabinet allotted six ministerial posts to Nidaa Tounes members, including that of foreign affairs. The portfolios of interior, defence and justice were assigned to independents. The Free Patriotic Union party—headed by football club magnate and former presidential hopeful Slim Riahi—and the liberal Afek Tounes will also be represented. Several Nidaa Tounes officials fought for weeks against the inclusion of Ennahda members, accusing them of bringing Tunisia to the brink during their time in office as part of an interim government. “It is normal that the primary party is in power and the second in opposition,” Nidaa Tounes general secretary Taieb Baccouche wrote in La Presse newspaper. He added that keeping Ennahda out of government had been “a promise to voters” made by the secularists. The far-left Popular Front coalition, which won 15 seats in parliament, said yesterday it would vote against the new cabinet make-up because of the presence of Islamists. Freed Jazeera reporter calls for release of his colleagues Greste says he felt mixed emotions about being released because it meant leaving behind “my brothers” AFP Nicosia A ustralian journalist Peter Greste yesterday urged Egypt to free his jailed colleagues at Al Jazeera, describing his “angst” at having to leave them behind after being released. Greste, 49, was arrested for allegedly aiding the blacklisted Muslim Brotherhood, along with colleagues CanadianEgyptian Mohamed Fahmy and Baher Mohamed of Egypt, in moves that sparked worldwide condemnation. The award-winning correspondent was freed and deported on Sunday after more than 400 days behind bars, and he immediately flew with his brother Michael to Cyprus, where he has been resting before returning to Australia. “This is a massive step forward... I just hope that Egypt keeps going down that path with the others,” Greste told Al Jazeera in his first interview since leaving prison. Greste said he felt a “real mix of emotions boiling inside” upon hearing that he was to be released because it meant leaving behind “my brothers” Fahmy and Mohamed. “I had gone out for a run... the prison warden called me and said: ‘It is time to get your stuff and go,’” he told the pan-Arab television network. “I feel incredible angst about my colleagues, leaving them behind,” he said. “Amidst all this relief, I still feel a sense of concern and worry. If it’s appropriate for me to be free, it’s right for all of them to be freed.” Greste said he was overwhelmed by the level of support for the campaign for his release, and that he now looked forward to “watching a few sunsets” and “feeling sand under my toes”. Fahmy’s relatives expect him to also be deported under a decree passed by Egypt’s President Abdel Fattah al-Sisi that allows for the transfer of foreigners on trial. His fiancee, Marwa Omara, said in Cairo: “We are expecting Mohamed to be released in the coming days.” Canada said Greste’s release was “positive” news and that it remained “very hopeful” that Fahmy would also be freed soon. Greste’s family expressed their joy after speaking to him on the phone. The Australian’s mother, Lois, told a news conference in their hometown of Brisbane: “I’m ecstatic. I just can’t say how happy I am about it.” Father Juris said it was not clear when he would arrive home. “He is gathering his thoughts for the trip home,” said his brother Andrew. “He is safe, healthy, very, very happy to be on his way home.” Australian Prime Minister Tony Abbott spoke of his “personal delight and our nation’s relief” at Greste’s release. He also voiced support for a free media and thanked Sisi. Al Jazeera also vowed to pursue the campaign to free the other two journalists. But Heather Allan, head of newsgathering at the channel, admitted she wasn’t confident that Mohamed would be released. “I can’t say I am confident, no. I just don’t know, honestly. Are we going to keep on fighting it? Absolutely—we are not going to leave him there,” she said. Mohamed’s family has pinned their hopes on a presidential pardon or his acquittal on appeal. Amnesty International said Greste’s release should not overshadow the ongoing imprisonment of Fahmy and Mohamed. “All three men are facing trumped up charges and were forced to endure a farcical trial marred by irregularities,” said Amnesty’s Hassiba Hadj Sahraoui. The Committee to Protect Journalists, a media watchdog, welcomed the release and called on Sisi to pardon and free Fahmy and Mohamed “and the other journalists still behind bars for doing their work”. The European Union also described Greste’s release as a “positive step” but called for his colleagues’ to be freed, adding that “journalists must be able to work in a safe working environment”. The high-profile trial, at which Greste and Fahmy were sentenced to seven years in prison and Mohamed to 10, proved a public relations nightmare for Sisi, who has cracked down on Islamists since toppling president Mohamed Mursi in July 2013. The verdict was overturned and a court in January ordered a retrial for the three. Greste worked for multiple news organisations before joining Al Jazeera English. Muslim Brotherhood supporters convicted of playing a role in the killing of 13 policemen in August 2013 stand behind bars during their trial in Cairo yesterday. Egypt confirms mass death sentences for police killings AFP Cairo A n Egyptian court yesterday confirmed death sentences against 183 men convicted of killing 13 policemen, in a verdict slammed as “outrageous” by rights group Amnesty International. The verdict came as another court announced that deposed Islamist president Mohamed Mursi would stand trial on February 15 in an espionage case— the fourth trial he is facing. The policemen were killed in an attack on a police station in Kerdasa, a town on the outskirts of Cairo, on August 14, 2013. The attack took place on the same day that security forces killed hundreds of demonstrators in clashes as they dismantled two massive protest camps in Cairo supporting Mursi. The court had in December issued a preliminary verdict against 188 defendants in a mass S udan’s mainstream opposition called yesterday for a nationwide boycott of upcoming presidential and parliamentary elections that they say are guaranteed to lead to a renewal of the 25-year rule of President Omar Hassan al-Bashir. Nearly all of Sudan’s opposition parties have said they will shun the April vote, citing deteriorating political and press freedoms, as well as worsening insurgencies in Darfur and the southern states of Blue Nile and South Kordofan. At a news conference, opposition leaders asked all Sudanese to join the boycott and explicitly called for Bashir’s removal. Opposition party representatives said they would hold some 20 political symposiums across Sudan to encourage citizens to join their boycott, starting with one in Khartoum tomorrow. It is not clear if the Bashir government, which maintains tight control over political activity in the country, will allow the symposiums to take place. Abu-Bakr Youssef, a spokesman for the main opposition coalition, said that the campaign’s title “leave” - sent a clear message that the election will not be free or fair. “We do not advocate an alternative to the elections, but a boycott of them, and say to Bashir and his party: Leave,” said Rabah alMahdi, daughter of exiled Umma party leader Sadiq al-Mahdi. A ruling party spokesman dismissed the boycott campaign as a political stunt made necessary by the opposition’s lack of popularity. “Elections are the most important constitutional duty and necessary to achieve democracy and the peaceful transfer of power,” said Yasser Youssef. “It was up to them to build their parties to compete in this election...I expect the failure of this negative campaign.” “Issuing mass death sentences whenever the case involves the killing of police officers now appears to be near-routine policy, regardless of facts and with no attempt to establish individual responsibility,” said Amnesty’s Hassiba Hadj Sahraoui. Rights groups and critics of President Abdel Fattah al-Sisi, the former army chief who ousted Mursi, say authorities are using the judiciary as an arm to repress any form of dissent, including from secular activists. Mursi and several top leaders of his blacklisted Muslim Brotherhood are in custody and facing several trials on charges punishable by death. Egypt’s first freely elected president is already facing three trials and the fourth will open on February 15 for allegedly leaking “classified documents”. Last week a court set May 16 for a verdict in another espionage case in which Mursi and 35 others are accused of conspiring with foreign powers, including Iran, to destabilise Egypt. Separately, another court is to deliver a verdict on April 21 in the trial of Mursi and 14 others for inciting the killing of protesters in clashes outside the presidential palace in December 2012. He is also on trial over a jailbreak and attacks on police stations during the 2011 uprising that ousted president Hosni Mubarak. Also yesterday, an appeals court ordered a retrial in a case involving the murder of a police officer during a firefight with Islamists in Kerdasa in September 2013 when security forces stormed the town to flush out Islamists who had taken control of it. In August 2014, a lower court had confirmed death sentences on 12 of the 23 defendants tried on charges of killing Major General Nabil Faraj. The court said seven of those sentenced to death, and who are in custody, will be retried along with four of those who were given life. The other convicted men are fugitives. South Sudan rivals sign new truce deal Sudanese opposition urges boycott of poll Reuters Khartoum trial, of whom two were acquitted yesterday while one, a minor, was sentenced to 10 years in prison. Charges against the remaining two were dropped after the court found that they were dead. Yesterday’s verdict, which can be appealed, came after the initial sentences were sent to the grand mufti, the government’s official interpreter of Islamic law, for ratification. Since the army deposed Mursi on July 3, 2013, at least 1,400 people have been killed in a police crackdown on protests, mostly Islamists supporting the ousted leader. Hundreds of his supporters have been sentenced to death in swift mass trials which the United Nations says were “unprecedented in recent history”. In a statement after yesterday’s verdict Amnesty International said the court’s decision was “outrageous” and “an example of the bias of the Egyptian criminal justice system”. AFP Addis Ababa S Kiir and Machar exchange documents after signing the ceasefire agreement in Addis Ababa yesterday. outh Sudan President Salva Kiir and rebel leader Riek Machar late Sunday signed a new agreement to end more than 13 months of fighting in a civil war that has left tens of thousands dead. “Complete cessation of hostilities in South Sudan is expected as of this morning (Monday),” Seyoum Mesfin, a negotiator from the regional IGAD bloc, told reporters in Addis Ababa where the ceasefire deal was signed. The two leaders have signed— and then broken—at least six previous ceasefire agreements since fighting began in December 2013. The eight-member East African bloc IGAD, which has in the past threatened sanctions over violations but never taken action, says this time it will take any ceasefire violations to the UN Security Council and the African Union’s Peace and Security Council and ask for “tough measures” against them, Mesfin said. After four days of difficult negotiations in the Ethiopian capital, Kiir and Machar have however failed to reach agreement on the conflict settlement proposed by IGAD which provides for a power-sharing arrangement between the two men. “This is a partial agreement because we have not solved some of the most critical issues,” Machar said after the signing, citing disagreements on the “transitional government structure” to set up and divide responsibilities within the administration. Negotiations will resume on February 20 with IGAD giving the warring sides one last chance to reach a final agreement by March 5. IGAD mediators did not try to hide their frustrations after meeting for an eighth summit to try to resolve the crisis. Kenyan President Uhuru Kenyatta told Kiir and Machar this was not what the people of South Sudan expected from their leaders after years of struggle. South Sudan gained independence from Sudan in 2011 after decades of armed conflict. Ethiopian Prime Minister Hailemariam Desalegn warned that failure to reach an agreement would have serious consequences for all of them, especially the leaders of South Sudan. A Western diplomat involved in the talks played down Sunday’s interim agreement, saying: “This is not a significant breakthrough, this is a small step at the most.” 12 Gulf Times Tuesday, February 3, 2015 ARAB WORLD Recalled Amman ambassador to return to Israel AFP Amman J ordan announced yesterday that its ambassador to Israel would return to his post in Tel Aviv three months after being recalled over “violations” at Jerusalem’s Al Aqsa mosque. “We have asked ambassador Walid Obeidat to return to Tel Aviv,” government spokesman Mohamed al-Momani said. Israeli Prime Minister Ben- jamin Netanyahu welcomed the announcement in a statement issued by his office. “This is an important step which reflects the common interests of Israel and Jordan, above all stability, security and peace,” Netanyahu said. Amman recalled Obeidat on November 5 after police clashed with stone-throwing Palestinians inside the Al Aqsa compound, with Foreign Minister Nasser Judeh describing Israeli actions as “violations” and “way beyond the limits”. Momani, who is also minister of state for information, said the decision to return Obeidat to Israel comes after the government “felt that the situation (at Al Aqsa) is in the right direction”. Obeidat’s recall had put enormous pressure on already frosty ties between Israel and Jordan, the only Arab country apart from Egypt to have a peace treaty with the Jewish state. Tensions soared to a new level in early November when Israeli police entered several metres inside Al Aqsa mosque during clashes triggered by a vow by Jewish far-right groups to visit the holy site. The compound, holy to both Muslims and Jews, is one of the most sensitive spots in the Middle East. Jordan, where almost half the population of 7mn is of Palestinian origin, has historical custodianship over the flashpoint site and other Muslim holy sites in Jerusalem. Amman is also seen as a key player in Israeli-Palestinian peace talks, and King Abdullah II has repeatedly called on Israel to end “its unilateral action and repeated attacks” against Jerusalem’s holy sites. After Obeidat was recalled, Netanyahu made a rare visit to Jordan for tripartite talks with Abdullah and US Secretary of State John Kerry to contain the diplomatic fallout. Momani said Jordan’s decision to return its envoy to Tel Aviv also comes after Amman noted that Israel has been allowing more Muslim worshippers to pray at Al Aqsa after having set limits. “Israel has received the message that holy sites in Jerusalem are a red line,” a government official said, speaking on condition of anonymity. Obeidat, a career diplomat, first went to Tel Aviv in October 2012, filling a position that had been vacant since mid2010 when his predecessor was named to a cabinet post in Amman. Despite pressure from main aid donor the United States, Jordan was reluctant to fill the position because of Israeli policies towards the conflict with the Palestinians, officials said at the time. Obeidat’s appointment in September 2012 had angered his tribe, one of the largest in Jordan, as well as the Muslim Brotherhood, the country’s main opposition group. Syria Kurds ‘push back’ Islamic State near Kobane Reuters Beirut K A man gives medical assistance to an injured man as two wounded children wait nearby at a field hospital after what activists said was an air strike by regime forces in the Douma neighbourhood of Damascus yesterday. 44 killed in air strikes across Syria: monitor The strikes come in response to a major rebel offensive that has been under way in southern Syria for months AFP Beirut S yrian government air strikes on opposition-held towns across the country killed at least 44 people yesterday and wounded more than 100, a monitoring group said. In Jassem in the southern province of Daraa, 16 civilians were killed in four air strikes, while 25 were wounded, said the Syrian Observatory for Human Rights. The strikes came in response to a major rebel offensive that has been under way in southern Syria for months. “As usual, the regime is striking populated areas in order to make civilian supporters of opposition fighters turn against them,” Observatory director Rami Abdel Rahman said. Rebels fighting to oust President Bashar al-Assad have suffered a spate of defeats at the hands of his forces, but they still have the upper hand in Daraa. “Opposition fighters are making steady progress in Daraa province. The vast majority of the west of the province has completely fallen out of government control, and that is where Jassem is located,” Abdel Rahman said. Rebels in the area benefit from “the fact that supply lines from Jordan are still open”, he added. The involvement of experienced fighters from Syria’s Al Qaeda affiliate, the Al Nusra Front, has also helped the rebels to gain territory in Daraa. Elsewhere, air strikes on Douma, the besieged rebel-held town east of Damascus, killed at least 10 civilians and wounded dozens more, the Observatory said. An AFP photographer in Douma said the strikes hit residential areas and that most of the wounded were children. At Khan Sheikhun in the northwestern province of Idlib, 15 people were killed, including a former army officer who had defected from loyalist ranks to join opposition forces, the Observatory said. Another three people were killed in strikes elsewhere in Syria—one in Aleppo province, a second in Damascus province and a third in Busra al-Sham in Daraa province. The regime first deployed warplanes in the Syrian conflict in July 2012. Now, nearly four years into the war, there are air strikes every day, despite repeated warnings from the international commu- nity that such tactics fail to discriminate between civilian and military targets. The Syrian conflict began as a peaceful uprising in March 2011 but escalated into a civil war after the government unleashed a brutal crackdown on dissent. More than 200,000 people have been killed since then, and nearly half of the population has fled their homes. Despite the raging war, Syria has kept in place subsidies for electricity and basic foods, the prime minister said yesterday, as the regime tries to drum up support in areas it controls. “The government continues to subsidise staple food products, as well as the electricity sector,” Prime Minister Wael al-Halqi told parliament. He said rice, bread and sugar—key staples subsidised by the government—have cost the state 180mn Syrian pounds ($900mn) despite soaring, war-induced inflation. Another 418bn pounds ($2bn) go towards funding electricity subsidies, Halqi said. Analysts and officials have warned that the war and international sanctions imposed on Syria have set back the economy by more than 30 years. More than half of the population is unemployed, and gross domestic product has shrunk by nearly 50%. Nearly 4mn people have been forced by war to flee Syria altogether, and millions more are living in misery in areas that have fallen out of government control. Pro-regime daily Al Watan recently said government subsidies on oil products had shrunk by nearly 80% by the end of 2014. In October, the government stopped subsidising fuel for businesses for the first time in decades. urdish militia backed by US-led air strikes are making rapid advances against Islamic State forces in rural areas around Kobane after driving the group from the Syrian border town last week, the Kurdish militia and a monitoring group said yesterday. A spokesman for the Syrian Kurdish YPG militia said IS forces were collapsing around Kobane. The Syrian Observatory for Human Rights, the monitoring organisation, said IS fighters were putting up little resistance in the face of the Kurdish advance and may be pushed back even further. “The fighting organisation of Daesh ... is in a state of complete collapse at present and cannot hold ground,” Redur Xelil, spokesman for the YPG, told Reuters by telephone, using a pejorative Arabic acronym for IS. The battle for Kobane, a predominantly Kurdish town known as Ain al-Arab in Arabic, became a focal point for the US-led air campaign against IS in Syria. The Syrian Kurds, who also received military support from Iraqi Kurdish peshmerga forces, drove IS from the town last week. IS controls wide areas of northern and eastern Syria, including a strip of territory across the northern Aleppo countryside and a corridor stretching southeast from Raqa province to the border with Iraq. Although the town has little strategic value, the battle for Kobane marked the first example of direct US support for ground forces fighting IS in Syria. As part of its strategy to roll back IS in Syria, the United States is also planning to train and equip non-jihadist rebels, who account for only a modest part of the fighters battling President Bashar al-Assad. Active recruitment of Syrian trainees has yet to start. The United States has ruled out the idea of co-operating with Assad in the fight against IS, describing him as part of the problem. The YPG says it has 50,000 fighters deployed in three predominantly Kurdish areas of northern Syria. It has said it is willing to be a partner in the USled campaign against IS. Nine of 27 air strikes by the United States and its allies on IS in Iraq and Syria in a 24-hour period were concentrated near Kobane, the Combined Joint Task Force said in a statement yesterday. Rami Abdel Rahman, who runs the Observatory, said IS fighters who were some 4 to 5km from the town on Sunday, were now at least 10km away. “There is no large-scale resistance,” he said. He said the Kurds were advancing with help from Syrian Arab armed groups from Raqa. Xelil said IS had withdrawn 10km in the last day alone and was more than 25km from Kobane. He said US-led air strikes continued, as did support from the Iraqi peshmerga who entered the town via Turkey. But he warned IS could open new fronts in Kurdish areas in northeast Syria. “There are daily clashes and perhaps these battles and clashes will increase, particularly in the Jazeera region, because Daesh will turn to other areas to recover what is left of its standing,” he said. The Jazeera region is the Kurdish name for northeastern Syria. Abdel Rahman said that IS, having lost 2,000 fighters battling for Kobane, was unable to open new fronts. “I expect a continued retreat in the Kobane rural area, after that there might be clashes in the outskirts of Raqa,” he said. Jordan death row prisoner is militants’ heroine Reuters Amman/Baghdad W hen her husband blew himself up in a luxury hotel during a wedding in Amman a decade ago, Sajida al-Rishawi was meant to die too, but her suicide bomb belt did not go off. Today, as a death-row prisoner in Jordan, she is a heroine to Islamist militants in the region, who may be willing to swap a Jordanian pilot for her. Rishawi, now in her mid-40s, has an influential background in militant circles: she hails from a powerful Sunni clan in western Iraq, and her brother was a top lieutenant of Abu Musab al-Zarqawi, the founder of Al Qaeda’s Iraq branch. Today, that group has since transformed itself into Islamic State (IS), breaking off from Al Qaeda and controlling swathes of Iraq and Syria. One of her cousins, Abdul Sittar Abu Risha, was a major figure in establishing the Sunni Awakening, a tribal movement that joined forces with the US military and turned against Al Qaeda. Although she is just one of thousands of suicide bomb- ers and would-be bombers who have been sent to kill and die by Al Qaeda and its offshoots, her background has helped turn her into a symbol to militants, who would make the most of her release. “She is an old woman, she does not have that much importance,” said Sheikh Mehdi Abdel Sittar Abu Risha, another cousin and senior figure in her prominent Abu Risha tribe in Iraq’s Anbar province. “But (IS) has used this as a political matter to say, ‘We take pride in our people more than you take pride in yours.’” Winning her freedom would be an important victory for IS leader Abu Bakr al-Baghdad, Zarqawi’s successor, whose aim is to show that his organisation is the foremost protector of Sunni militants across the Middle East, particularly among Iraq’s tribes. He has evoked her personally, vowing in a rare public address in the newly captured Iraqi city of Mosul in July to win freedom for female jihadist prisoners. “He made the name of Sajida synonymous with the name of Baghdadi,” said an Iraqi security source. It is still far from clear that any prisoner swap can be negotiated. In statements released last week a Japanese journalist said his captors wanted to swap him for Rishawi, but any negotiations failed and he was beheaded. Jordan has offered to free Rishawi in return for its pilot Maaz al-Kassasbeh who was captured in December after his jet crashed in territory controlled by the militants in Syria. IS has called for Rishawi’s release in exchange for Kassasbeh’s life but has not said it will free him. Jordanian officials say they have not been sent proof he is alive. Rishawi was sentenced to death in 2006 after surviving the attack on the Radisson Hotel in Amman, part of an operation that targeted four hotels across the city and killed 60 people. She confessed on Jordanian television days after the bombings but then pleaded not guilty at her trial. “I have no one ... I am alone with Allah protecting me,” Rishawi told the judge at the trial in 2006 where she appeared dressed in a long black coat and headscarf. Her lawyer Hussein Masri told Reuters she had begged him to Sajida al-Rishawi stands inside a military court at Jweideh prison in Amman in this April 24, 2006 file photo. defend her staunchly, saying she would hold him “accountable in front of God in the day of reckoning” if he failed her. Her importance to IS stems from the links she had to late Iraqi Al Qaeda leader Zarqawi, who was killed by a US air strike in 2006 after leading the Sunni Muslim insurgency against US occupation forces. The hotel attack with her husband was the first ordered by Zarqawi outside Iraq. “Zarqawi made a vow to free Sajida. Whoever fulfils this vow will win the sympathy of all the jihadists loyal to Zarqawi. This will be a point for (IS) against Al Qaeda,” the Iraqi security official said. Since breaking away from Al Qaeda, IS fighters have sought to establish themselves as the main jihadist force in the Middle East, declaring a caliphate last year in land they control in Syria and Iraq. Attempts to free her are also aimed at embarrassing Jordanian intelligence, widely seen as one of the most sophisticated agencies of its kind in the Arab world, the official added. She is classed as a high security detainee and has been in solitary confinement in Jweideh prison since she was arrested, a Jordanian security official said. None of her relatives have ever asked to see her, another source added. The Rishawis hail from the city of Al Khalidiya in Iraq’s central Anbar province. Her brother Haji Thamer, who was killed in Fallujah in 2004, was said to be a leading aide of Zarqawi. Two other brothers also died in Fallujah in 2004, site of seminal battles against the US Marines. Rishawi and members of her Abu Risha family were treated as “VIPs” in IS circles, a US government source following the case said. The Jordanians are worried about releasing her because of her importance to the group and the fear the pilot would remain in captivity, the US source added. Her release could win support from her tribe in Anbar, an important constituency for jihadists in Iraq. “All her family are a jihadist family that gave many sacrifices and who are still in the Islamic State in Anbar. So she is a potent symbol from the first generation of Al Qaeda in Iraq who formed the nucleus of present day Islamic State,” Jordanian scholar Hassan Abu Hanieh said. Gulf Times Tuesday, February 3, 2015 13 AFRICA Uganda may have found body of LRA deputy chief AFP Kampala U A man throws a container of water towards a burning car after a bomb explosion outside Gombe stadium. Blast hits Nigeria town after presidential rally AFP Gombe, Nigeria A suspected suicide bombing rocked a presidential campaign rally in northeast Nigeria, as the country braced yesterday for fresh Boko Haram attacks before polling in just under two weeks time. President Goodluck Jonathan, who had been addressing supporters of his ruling Peoples Democratic Party (PDP) in Gombe city, had just left the venue when the blast happened in a car park outside. Rescue workers and health officials said the bodies of two women were brought to the Gombe State Specialist Hospital with 18 people who were injured. “We have evacuated two bodies of females we believe were suicide bombers behind the blast,” said the rescue official, who asked to remain anonymous because he was not authorised to speak to media. The blast, confirmed by eyewitnesses including a local reporter following the presidential convoy, came a day after two explosions on Sunday in Gombe city blamed on Boko Haram militants. Sunday’s attacks left at least five people dead in a weekend of deadly violence that also saw the Islamists attack the key city of Maiduguri for the second time in a week. Nigerian troops, aided by civilian vigilantes, repelled the attack while Chad and Cameroon bombed the Boko Haram-held town of Gamboru, on the eastern fringe of Borno State. Security analysts believe Maiduguri, the Borno state capital, will likely be hit again before polling day, given its symbolism for the group and because it would undermine the February 14 vote. The election is expected to be the closest since Nigeria returned to civilian rule in 1999, with the prospect of the PDP being dumped out of power for the first time in 16 years. Nnamdi Obasi, Nigeria researcher at the International Crisis Group, said the upsurge in violence was “predictable” and that another strike on Maiduguri was on the cards. Boko Haram is in control of most of Borno and has effectively surrounded Maiduguri, which is seen as one of the few places left in the state where voting could feasibly still take place. Turnout could be affected if large numbers of people, many of them displaced by six years of violence, desert the city, which with other areas in the northeast is a main opposition stronghold. Capturing Maiduguri would not only be a morale-booster for the rebels but also likely sink Jonathan’s Nigerian President Goodluck Jonathan waves to party supporters during a campaign rally in Gombe yesterday. re-election bid once and for all, said Obasi. Chad’s offensive comes after the African Union and UN last week backed a new 7,500-strong, fivenation force to tackle Boko Haram. Nigeria’s military maintains that N’Djamena’s involvement is part of the existing agreement with Chad and Niger for their troops to assist in the counter-insurgency. Chad and Niger had withdrawn their troops from the multi-national base at Baga, in northern Borno, last year, leaving only Nigerian soldiers to defend the town when it was attacked on January 3. That led some to assume the existing force was dead in the water but the devastating strike on Baga, in which hundreds or more were feared killed, appears to have jolted it into action. Jonathan, who has been criticised for failing to end the violence, could be hoping for a political bounce from any military successes in the tight election campaign, even at this late stage. But Mark Schroeder, from security and political analysts Stratfor, believes that allowing foreign forces to operate on Nigerian soil would be counterproductive to him and the country. “This is essentially absolving Nigeria of its long-standing geopolitical strength as the region’s hegemon able to assist internal and pan-West African security stability,” he said. Schroeder, the group’s vice-president for Africa analysis, also considered Nigerian Army operations no more than “forays”, adding that a sustained effort was needed to claw back territory. Boko Haram’s attacks on Maiduguri may be designed to draw the Nigerian army to defend the city, allowing the group to mount strikes elsewhere in the northeast and defend eastern positions. Ryan Cummings, chief Africa analyst at risk consultants Red24, suggested the last two strikes may have been preliminary tests of the city’s defences. “Boko Haram is currently in its most advantageous tactical position to launch a large-scale offensive on Maiduguri, with the intent of actually capturing the city,” he said. “This could be the preamble to such a push. I still remain sceptical as to whether Boko Haram has the resources to either capture or hold a city the size of Maiduguri. But the sect may well be planning to give it a go.” ganda said yesterday it was conducting DNA tests to determine whether a body discovered is that of the wanted deputy of Uganda’s murderous Lord’s Resistance Army rebels. Army spokesman Paddy Ankunda said what was believed to be the grave of Okot Odhiambo, the No 2 of LRA leader Joseph Kony, had been found - although details about its location and the timing of DNA tests remain classified. Like Kony, who is still at large, Odhiambo has been indicted by The Hague-based International Criminal Court (ICC) on charges of butchering and kidnapping civilians. “We have recovered the body,” Ankunda told AFP. “We have exhumed the parts. We are conducting DNA to ascertain whether it’s the one.” Odhiambo is thought to have been hiding out with a group of hardcore fighters in the remote jungles of Central African Republic, in northeast Democratic Republic of Congo or South Sudan, but may have been killed in fighting about a year ago. Odhiambo is widely suspected to have directed the killing of some 300 civilians during a February 2004 attack on the Barlonyo internally displaced persons camp in northern Uganda, one of the single largest massacres in the LRA’s brutal history. The news comes only weeks after the surprise surrender of Dominic Ongwen, a former child soldier and top LRA warlord, to US troops who have been helping Uganda track down the rebels. Ongwen made his first appearance before the ICC accused of war crimes and crimes against humanity a week ago. SA to repatriate last of Nigerian church victims AFP Johannesburg S outh Africa said yesterday it will this week bring back the remaining bodies of its nationals killed in a Nigerian church building collapse four months ago. Minister Jeff Radebe told reporters that a South African Air Force C130 aircraft would be dispatched to Lagos “to bring the mortal remains of those that have been positively identified.” Of the 81 bodies, 70 were repatriated in November, two months after a multi-storey building collapsed at the Lagos church of the influential Nigerian preacher TB Joshua. The outstanding 11 were still undergoing DNA identification. “Our repatriation team is departing this afternoon for Lagos,” said Radebe, and “when they land, we will know precisely how many South Africans will be repatriated.” Nigerian authorities have been driving the testing and verification process. A delayed rescue operation, “climatic conditions” and the sheer number of victims that had to be identified were responsible for the prolonged wait for the bodies, said Radebe. The disaster killed 116 people in all, including Nigerians and other foreign nationals. The Lagos state coroner is carrying out an inquest into the causes of the collapse at a guesthouse within the Synagogue Church of All Nations (SCOAN) church’s compound. The self-proclaimed ‘prophet’ has claimed the building collapse may have been sabotage and has on three occasions ignored summonses to testify. He is now challenging the coroner’s powers to call him as a witness and the case is still pending in the High Court. Liberia begins clinical trial for Ebola vaccines Reuters Monrovia L iberia yesterday began a trial of experimental Ebola vaccines, involving thousands of volunteers as part of an effort to slow the spread of the deadly haemorrhagic fever and prevent future outbreaks. The epidemic has killed more than 8,800 people in West Africa since it began more than a year ago, overwhelming weak healthcare systems in Guinea, Liberia and Sierra Leone. Its spread now appears to be slowing, especially in Liberia which currently has just a handful of cases. The trial to test two vaccines from GlaxoSmithKline and New Link/Merck began at the government-run Redemption Hospital in Monrovia, a cluster of cement blocks in the teeming New Kru Town neighbourhood that was one of the first parts of the capital to be struck by the disease. “I do not want for Ebola to affect my family and so I have come to volunteer,” said Zolu McGill, among the first batch of four volunteers seen at the hospital by a Reuters reporter. Scientists say the study, a final stage trial which hopes to involve 27,000 volunteers at the heart of the epidemic after earlier safety trials in the UK, US and other African countries, could be a turning point in the fight against the deadly virus, which has no known cure. But given relatively few new cases in the dwindling outbreak, researchers are concerned the trial in Liberia, plus another planned in Sierra Leone, may not have the statistical power needed to show whether the shots work. Volunteers will receive a small compensation package. Each of the vaccines contains a small harmless portion of the Ebola virus and may cause side effects in some people such as pain, redness, fever, headaches, mouth sores, tiredness, muscle, joint pain and loss of appetite. The Partnership for Research on Ebola Vaccines (Prevail) says healthy volunteers above 18 years old who have no previous history of the virus will be selected. Vice President Joseph Boakai said in a speech on Sunday attended by dignitaries that he hoped the successful development of drugs would prevent any other country from suffering the devastation experienced by Liberia. “It’s our conviction that from this worthy exercise humankind will prevail over the deadly killer of man,” he said. The slowdown in the epidemic is already hampering drug development. Chimerix Inc said on Friday it was stopping participation in clinical studies in Liberia of a drug, brincidofovir, to treat people who already have Ebola, citing the slump in new cases. With that in mind, and looking ahead to future potential outbreaks, scientists are thinking about how to develop and test second-generation Ebola vaccines, which could be used to prevent more strains of the disease than the current fast-tracked shots. Some scientists and aid workers are calling for trials to begin promptly in neighbouring Sierra Leone where transmission hotspots exist around the capital Freetown. The US ambassador to Liberia, Deborah Malac, said that cooperation on the vaccines represented an opportunity for greater cooperation between the two countries on clinical research and developing the Liberian health system. “It’s fantastic that large-scale trials of the first candidate Ebola vaccine are getting underway in Liberia, a country that has suffered enormously at the hands of this disease,” said Jeremy Farrar, Director of the Wellcome Trust, which is funding a trial of the GSK vaccine in Britain and Mali. A health worker injects a volunteer with an Ebola vaccine during a trial in Monrovia. 14 Gulf Times Tuesday, February 3, 2015 AMERICAS Court weighs use of lethal injection drug Several convicts have suffered great pain during execution AFP Washington T he US supreme court is due to review the use of lethal injection drugs following several bungled executions that saw inmates gasping for air during prolonged killings. The court will revisit the 2008 “Baze vs. Daze” ruling that deemed lethal injection does not violate the Eighth Amendment to the US Constitution, which prohibits “cruel and unusual punishment”. The court could ban the use of the controversial midazolam sedative, which was used in three botched executions in the United States last year and is not approved by the US Food and Drug Administration to be used as an anaesthetic. The case was brought by four Oklahoma inmates scheduled to be killed on death row, but one was killed before this week’s decision to stay all executions using the disputed drug in the state. Drug companies have refused to produce drugs to be used for executions and the 32 US states where capital punishment remains legal are facing shortages. Some facts about the case and what it could mean for lethal injection in the United States: Strictly speaking, the court on January 23 agreed to consider the use of midazolam in lethal injections in Oklahoma. Last April, Oklahoma death row inmate US supreme court justices, John Roberts, Anthony Kennedy, Ruth Bader Ginsburg, Stephen Breyer, Sonia Sotomayor and Elena Kagan at the State of the Union speech. Clayton Lockett took an agonising 43 minutes to die and could be seen writhing in pain during the prolonged execution. Now, the court has agreed to consider — likely at the end of April — whether it can authorise the use of the lethal injection cocktail. The court will decide whether the drug fully sedates the inmate to ensure he does not feel pain from the other drugs used to paralyse and kill him. The nine judges will also consider whether a death row inmate has to prove that a better alternative execution method is available, even if the existing lethal injection method is deemed unconstitutional. Midazolam is used in Oklahoma and other states as an anaesthetic that is meant to render the inmate completely unconscious before he is injected with lethal drugs. But the drug is not 100%. Experts say that if the dosage is incor- rect, the inmate can feel excruciating pain after being put into a state of paralysis, which opponents have said violates Eighth Amendment rights. Midazolam has been used in three executions in 2014 where inmates are believed to have suffered, including in Lockett’s prolonged death. On January 16, 2014, Ohio inmate Dennis McGuire took 26 minutes to die, and Arizona death row convict Joseph Wood took 117 minutes to die on July 23. Lethal injection executions are expected to take 10 minutes, and in all three cases, the men could be seen gasping for air. The US Supreme Court can at minimum ban all lethal injections using midazolam, if the court finds the drug causes pain that it deems unconstitutional. But it could go even further by reversing the 2008 ruling that lethal injection was constitutional in a chaotic landscape where each state uses different drugs produced by compounding pharmacies. Florida and Oklahoma use midazolam combined with two other drugs, while Ohio and Arizona have used it in combination with only one other substance. Missouri has administered the drug as a sedative before the official lethal injection protocol. These five states are responsible for half of all 41 executions carried out so far this year and last. But other states — including Alabama, Kentucky, Louisiana and Virginia — are currently considering using midazolam in lethal injection executions. The case was brought forward after Lockett’s botched killing by four other death row inmates: plaintiffs Charles Warner, Richard Glossip, Benjamin Cole and John Grant. The case was originally dubbed “Warner vs. Gross,” but Warner was executed on January 15 after the Supreme Court rejected his last-minute appeal for clemency. The case is now referred to as “Glossip vs. Gross,” and the executions of the three plaintiffs have been stayed while the court considers the issue. Only four of the nine Supreme Court justices voted to stay Warner’s execution. It requires five votes, but according to court protocol, only four votes are required to consider a case and the court has now agreed to take up “Glossip vs. Gross”. Likely with the four same votes that would have granted Warner’s stay. Not everyone agrees with this Supreme Court rule, however. Hofstra University constitutional law professor Eric Freedman said the court should “stop permitting executions when four justices object”. Toronto blizzard A Toronto Transit Commission (TTC) Streetcar stops while the engineer attempts to clear snow during a blizzard in Toronto, Canada. After Paris attacks, call to tighten visa rules AFP Washington U S politicians are calling for changes to a law that allows Europeans and other foreigners to enter the country without visas, citing fears that jihadists could exploit the rules to stage attacks on American soil. The visa waiver programme, which covers tourists from 38 countries, represents the “Achilles’ heel of America”, said senator Dianne Feinstein, who is urging a tightening of the rules. The attacks against the French satirical magazine Charlie Hebdo in Paris this month have renewed concerns in Washington that extremists with Western passports will slip into the United States under the cover of the visa-free travel programme. Feinstein, former head of the Senate Intelligence Committee, is working on a bill to reform the rules that will be proposed soon, her aides said. Other lawmakers also are eyeing changes to the law, including Candice Miller, a Republican from Michigan, who introduced a bill that would enable the department of homeland security (DHS) to suspend countries from the programme if they fail to provide key information on potential suspects. The Paris attacks, carried out by men with French passports, and the growing number of Europeans volunteering to fight with jihadists in Syria and Iraq — an estimated 3,000 to 5,000 — offers a chilling reminder for Americans of dangerous terror plots. Zacarias Moussaoui, known as the “20th hijacker” in the September 11, 2001 attacks, travelled to the United States simply by presenting his French passport. And Richard Reid, who tried to blow up a US-bound airliner in December 2001 with an explosive hidden in his shoe, needed no visa with his British passport. However, the US government has dramatically revised procedures for the visa-free travel programme since the 9/11 attacks. Starting in 2008, passengers planning to travel under the visa waiver rules have to fill out a special form beforehand, known as the Electronic System for Travel Authorization (ESTA). The electronic forms are an important tool, allowing US authorities to see well in advance who is trying to enter the United States, said Christian Beckner, deputy director at the Center for Cyber and Homeland Security at George Washington University. Homeland security secretary Jeh Johnson on Thursday warned it would be “a mistake” to scrap the visa waiver programme, but he acknowledged that security for the programme could be “improved.” “We are engaging our allies in Europe and elsewhere to encourage them to maintain and share travel information about individuals of suspicion,” Johnson said. Some US lawmakers have complained that countries that take part in the programme are not fulfilling their obligation to share information on potential extremists. Zacarias Moussaoui - the “20th hijacker” in the 9/11 attacks, travelled to the US simply by presenting his French passport “While DHS continuously vets all visa applicants against our terrorism databases, we do not routinely get the critical information we need to identify and stop foreign fighters bound for the US from our overseas partners in the programme,” Miller said. The best way to address the security risks is to insist on more intelligence sharing, according to Nathan Sales, associate professor of law at Syracuse University. “The solution is not to scrap the visa waiver programme, but to implement fully the intelligence sharing agreements that are already required by law, and extend further the scope of these intelligence sharing agreements,” he said. Only about half of the countries in the programme have fully complied with the requirement to share information, and many provisions have not been implemented, according to the Government Accountability Office, the investigative arm of Congress. To improve the vetting effort, the DHS has added more questions to the ESTA system. Since November, for example, the electronic form asks for the name of the passenger’s parents, aliases used and personal contacts in the United States. Experts say the visa exemption, which began in 1986, plays a vital role in boosting lucrative tourism and trade with prosperous countries. In 2012, 19.1mn people entered the United States under the visa waiver rules. Punxsutawney Phil predicts six more weeks of winter Reuters Punxsutawney, Pa P unxsutawney Phil, the American groundhog famous for his weather predictions, saw his shadow after emerging from his burrow atop Gobbler’s Knob in Pennsylvania yesterday, forecasting six more weeks of winter. Phil’s prediction came at about 7.25am EST in the Western Pennsylvania borough of Punxsutawney, where some in his audience chanted “six more weeks, six more weeks” as they waited. Legend has it that if the groundhog sees his shadow, North America will experience six more weeks of winter and if he does not, spring will come early. “Six more weeks of winter means more potential for snow days so I am not exactly heartbroken,” said Robin Amador, 39, an educator from Lorain, Ohio. “I could kiss that little guy for that.” The history of groundhogs, also known as woodchucks, as weather prognosticators in the United States dates to the 1800s, according to the Punxsutawney Groundhog Club’s website. Celebrations of the holiday take place throughout the United States but thanks in part to Groundhog Day, the 1993 film starring Bill Murray and set in Punxsutawney, Phil’s burrow is the epicenter of celebration. Each year on February 2, the borough of about 6,000 people swells to as many as 30,000 revelers, who come decked out in groundhog hats and scarves and holding signs begging for winter’s hasty exit. Hank Zaborniak, 29, used the occasion to propose to his girlfriend, Jaquelynn Kestner, 31. The Ohio couple described themselves as big Murray fans. “He said he wouldn’t mind spending the rest of his life with me or the same day over and over,” Kestner said. In New York City’s take on the tradition, officials tried a new arms-length approach on a snowy, slushy Monday at the Staten Island Zoo. A groundhog bit the hand of the previous mayor, Michael Bloomberg, in 2009 and last year, Mayor Bill de Blasio dropped a groundhog, which died a few days later. This time, a specially built rodent-sized elevator lifted the groundhog known as Staten Island Chuck into what zoo officials called “an innovative Groundhog Day viewing unit”: a box with clear plastic sides and fake turf. “I think we got Nasa involved,” de Blasio said. Despite the shadows cast by the strong halogen lights pointing at the groundhog, the creature’s handlers had warmer news than that coming out of Pennsylvania. “Spring is coming,” the mayor announced, looking relieved. No mayors or groundhogs were harmed. New York city mayor Bill de Blasio, public advocate Letitia James and students watch Staten Island Chuck at the Staten Island Zoo yesterday. Gulf Times Tuesday, February 3, 2015 15 ASEAN Anniversary celebration Investigators say no evidence jet captain left his seat Reuters Jakarta I Children perform during a ceremony to mark the 85th foundation of the Communist Party of Vietnam in Hanoi yesterday. Vietnam celebrated the 85th anniversary of its ruling party, which the late revolutionary leader Ho Chi Minh founded in Hong Kong on February 3, 1930. Aussies ‘among next group to be executed in Indonesia’ AFP Jakarta T wo Australians on death row in Bali will be among the next group of prisoners to be executed in Indonesia, an official said yesterday, as Jakarta takes an increasingly hard line against drug traffickers. Attorney General H M Prasetyo did not say when or where Andrew Chan and Myuran Sukumaran, the leaders of the so-called “Bali Nine” drugsmuggling gang, would be put to death by firing squad, only that “they will be included” in the next batch. Indonesia last month executed six drug traffickers including five foreigners, triggering a diplomatic storm as Brazil and the Netherlands - whose citizens were among those killed - withdrew their ambassadors. Indonesian President Joko Widodo has been a vocal supporter of capital punishment, and had already rejected clemency appeals from Sukumaran and Chan. File photo shows convicted Australian drug smugglers Myuran Sukumaran (left) and Andrew Chan, the leaders of the so-called “Bali Nine” drug-smuggling gang, gesture as they sit inside Kerobokan prison in Denpasar, Bali. The pair 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. Apart from confirming the men would be in the next group to be executed, the attorney general did not give any further details to reporters, or say who else would be included in the group. In December Sukumaran lost his appeal for presidential clemency, the last chance by a death row convict to avoid the firing squad. Chan’s appeal was rejected last month, removing the final hurdle for Jakarta to push ahead with executing the pair. Authorities have insisted they be put to death together as they committed their crime together. On Friday they applied for a fresh judicial review of their cases but the attorney general’s office has insisted there are no more legal avenues open to them. Jakarta said last week it was ready to execute seven foreign drug convicts on death row, including the Australians. Widodo, known as Jokowi, has shocked rights groups with his support for executions, as they had hoped he would take a softer line on capital punishment. Australian Prime Minister Tony Abbott has urged Indonesia to show mercy to the pair. “We were surprised -- and dismayed -- that Jokowi decided to make the death penalty a signature issue of the early part of his administration,” said Phelim Kine, deputy director Asia for Human Rights Watch. ndonesian air crash investigators said yesterday they had not so far found evidence that the pilot of an AirAsia jet had left his seat, or that power to an automated control system was shut off, shortly before the aircraft plunged into the sea. Two sources familiar with the investigation had told Reuters that Captain Iriyanto was out of his seat carrying out the unusual procedure of pulling the circuit-breaker on a flight computer when his co-pilot apparently lost control of the Airbus A320. AirAsia flight QZ8501 vanished from radar screens on Dec 28, less than half-way into a two-hour flight from Indonesia’s second-biggest city of Surabaya to Singapore. All 162 people on board were killed. “Up until today, there is no indication yet that the captain left his seat as reported by Reuters,” Ertata Lananggalih, an investigator with the National Transportation Safety Committee (NTSC), told Reuters at the team’s office in Jakarta, referring to the story published on Saturday. People familiar with the investigation had earlier said that investigators were examining maintenance records of one of the plane’s automated systems, the Flight Augmentation Computer (FAC), and how the pilots may have reacted to any outage. Bloomberg News reported on Friday that the pilots of the crashed plane had tried to reset the FAC during the flight, and had then pulled a circuitbreaker to cut power to the device. People familiar with the matter told Reuters it was the Indonesian captain who took this step, rather than his less experienced French co-pilot, Remy Plesel, who was flying the plane. NTSC investigators disputed yesterday that the circuit breaker was pulled. “Up until today, there is no indication or evidence yet that the circuit breaker was pulled,” Lananggalih said. The NTSC declined to elaborate further, saying the accident was still under investigation. However, a document prepared by the investigation team and reviewed by Reuters indicated the FAC system and the cockpit circuit breakers were among the issues of interest to the probe. The schedule document listed more than 30 items for discussion. Along with more general points such as “wreckage recovery” and “maintenance review”, it included the entry “FAC engagement and failure understanding” and another entry related to pulling “CB”, a common abbreviation for circuit-breakers. “This is .. just inventory. It is to make the investigation easier. There are maybe 40 or 35 things that have to be discussed,” said Tatang Kurniadi, chief of the NTSC, when asked about the list. Malaysia focuses on real-time tracking Malaysia, which had two air disasters last year after one jet disappeared and another was shot down over Ukraine, said yesterday that real-time aircraft tracking must become a priority for the industry. While real-time tracking of commercial planes would have a financial impact, it is too vital to ignore, Malaysia said in a paper to the United Nations’ International Civil Aviation Organisation safety conference, which opened yesterday. “We believe, based on our unfortunate experience, (it) will be offset by the benefits of enhancing the effectiveness of the alerting and search and rescue services,” the paper said. Malaysian Airlines Flight MH370 disappeared last March shortly after taking off from Kuala Lumpur for Beijing with 239 people on board. A nearly yearlong search, now focused on the seabed off Australia’s western coast, has failed to turn up any sign of the aircraft or its flight record- ers, known as black boxes. “The disappearance of MH370 demonstrates the crucial need to improve aircraft tracking systems for the sake of safety and security,” Malaysia said in its paper. “In this day and age, the fact that an airplane could go missing and that the flight recorders could be so difficult to recover is unacceptable.” The airline industry is divided over the costs of installing new tracking systems. The ICAO conference, which runs through Thursday, is likely to call for planes to send tracking signals at regular intervals in normal flight and to speed them up when they get into trouble. It is also looking at ejectable black boxes as one way to aid searches and solve mysteries like that of MH370. A strong ICAO mandate to impose flight tracking would also need national measures to take effect. The European Union is expected to move quickly to make them law, an EU official has said. POLITICS 12,000 skulls exhumed at prison: ex-inmate AFP Phnom Penh C ambodia’s UN-backed court yesterday heard a former prisoner say he helped dig up more than 12,000 skulls in mass graves outside Phnom Penh, as the genocide trial of two Khmer Rouge leaders continued. Nuon Chea, 88, known as “Brother Number Two”, and former head of state Khieu Samphan, 83, face charges over the killing of ethnic Vietnamese and Muslim minorities, forced marriage and rape during the 19751979 regime. In August the pair were given life sentences for crimes against humanity — the first top Khmer Rouge figures to be jailed — after a two-year trial focused on the forced evacuation of Cambodians from Phnom Penh into rural labour camps and murders at an execution site. The pair have been accused of playing a critical role in the “Killing Fields” era, a genocide which left up to 2mn people dead in the late 1970s. Former prisoner Keo Chandara, 63, said he helped exhume more than 12,100 skulls from eight mass graves at Kraing Ta Chan prison in Takeo province, around 80 kilometres south of Phnom Penh shortly after the regime fell in 1979. “We did not excavate all the pits. I was ordered to dig up the pits... I did the excavation at those eight pits,” he said. The prosecution witness also gave graphic testimony of Khmer Rouge cadres torturing prisoners including a woman with metal pincers and then sulphuric acid. “She was screaming and there were about 10 prisoners who were ordered to sit and watch the torture,” Keo Chandara said. “At that time they didn’t take people through a court like this court. They just simply killed people,” he added. When the court resumed the genocide trial last month, the prosecution’s first witness told judges that Khmer Rouge soldiers slit the throats of hundreds of inmates at the prison and ate their gall bladders. The complex case against Nuon Chea and Khieu Samphan was split into a series of smaller trials in 2011 to try to obtain a faster verdict against the pair given their advanced ages and frail health. Thai junta steps up security after Bangkok pipe bombs AFP Bangkok T hailand’s junta vowed yesterday to tighten security after two homemade pipe bombs detonated near a Bangkok shopping mall, the first major disruption to an uneasy peace imposed under martial law since last May’s coup. Authorities declined to speculate whether the small bombs — which caused minor injuries to two passers-by when they exploded near the downtown Paragon mall on Sunday evening — were linked to the nation’s turbulent politics. But deputy prime Minister Prawit Wongsuwon warned the public will now face stepped up security. “We will strictly enforce security across the country. We need to have high security checks in some areas,” he told reporters. “We can’t say who is be- Police forensic experts work at the site of a blast on an elevated walkway linking the overhead rail line to the mall in central Bangkok. hind this... it could be people who have bad intentions, or are linked to politics or people who think differently,” he added, without elaborating. A team of forensic police yesterday sifted through the debris created by the blasts, which struck at around 8 pm (1300 GMT) on Sunday on a walkway leading to the busy Paragon shopping centre. “They were pipe bombs... low pressure explosive devices,” national police spokesman Prawut Thavornsiri told reporters. “They did not aim to cause major damage... they were used to create trouble,” he added. Thailand has been under martial law since the coup toppled the elected government last year, despite growing calls from rights groups and the in- ternational community for the junta to rescind the draconian law. Political gatherings and criticism of the coup are forbidden under the law, with the junta responding aggressively to any form of protest. Martial law also allows civilians to be tried in military courts, with verdicts not subject to appeal. The Thai junta has repeatedly justified martial law by saying Thailand’s bitter political divisions need more time to heal, while they set about remodelling the kingdom’s political structure. Thailand has endured nearly a decade of political turmoil sincebnaire former premier Thaksin Shinawatra rattled the establishment by winning elections with his populist politics. Parties led by Thaksin, his family or affiliates have won every election since 2001, in the process facing two coups and the disposal of three premiers by Thailand’s interventionist courts. Cambodia’s ruling party promotes premier’s sons Cambodia’s ruling party named three sons of long-time Prime Minister Hun Sen to its upper ranks yesterday as part of a bid to rejuvenate its leadership and claw back support lost at the last general election. The elevation of Hun Sen’s sons within the Cambodian People’s Party (CPP) has fuelled speculation the 62-year-old strongman is positioning his dynasty to succeed him after 30 years in power and triggered at least one accusation of nepotism. Rights groups also said some of 306 members added to the CPP’s central committee might have played a role in the violent anti-government protests after the disputed 2013 election. The CPP has governed the country since 1979, but was returned to power in 2013 with a greatly reduced majority, losing many seats to the opposition Cambodia National Rescue Party (CNRP). The next election, scheduled for 2018, is expected to be closely fought. CPP spokesman and Information Minister Khieu Kanharith said the party’s decisionmaking body needed younger members to increase its appeal in a country where half the population is under 30. The CPP also increased the number of women on its central committee, according to a list obtained by Reuters yesterday after a three-day party congress ended on Sunday. 2014 TOURISM PERFORMANCE SUMMARY WORD FROM THE CHAIRMAN INTERNATIONAL VISITS TO QATAR* Qatar grew by 8.2% from 2013, and the longer run trend is even more impressive with an average annual growth of 13.8% over the past five years. Issa bin Mohammed Al Mohannadi Chairman of QTA It is my pleasure to announce that the tourism industry in Qatar continued its strong performance in 2014. All key indicators demonstrated improvement and growth. Qatar is rapidly becoming an important destination for international travelers, with continued major investments in the tourism sector. Visitor arrivals to Major Achievements In 2014, the QTA worked tirelessly toward implementing the Qatar National Tourism Sector Strategy. We opened satellite offices in Saudi Arabia, Singapore, and Germany, in addition to our existing two offices in the UK and France, as one means for expanding our footprint and achieving our goal of 7 to 9 million visitors by 2030. QTA also continued work with the United Nations World Tourism Organization (UNWTO) to upgrade our policies and regulations to the highest international standards and to develop human capital for the tourism sector, both here in Qatar and across the region. QTA generates 8.3% of non-extraction GDP. These figures are encouraging, prompting all of us to exert additional effort and undertake further initiatives to develop the tourism sector. signed the Global Code of Ethics for Tourism, intended to minimize the negative impacts of tourism on the environment and cultural heritage, while maximizing the benefits for residents of tourism destinations. In addition, QTA organized a variety of successful events and festivals, including the Eid festivals and the Summer Festival, which attracted huge numbers from Qatar and GCC. Bright Prospects for the Industry Prospects for the industry are bright as developers see the tremendous opportunity and are rapidly planning and constructing hotels, resorts, and other attractions to accommodate the expected demand from international markets. QTA is working to support this growth through a wide range of strategic marketing activities and initiatives, the provision of improved data and information to industry stakeholders, and a more robust and supportive regulatory environment. Let us continue our journey of success in 2015 by working together to further develop and expand Qatar’s tourism sector. Establishment of Contribution to the GDP In line with the objectives set by the Qatar National Vision 2030 and the Qatar National Tourism Sector Strategy 2030, tourism is becoming a vital pillar in Qatar’s development and a key driver of economic growth in the country. New QTA research implementing the Tourism Satellite Account measurement system estimates that tourism 3.0 milions 2.5 2.0 Other Asia inc. Oceania GCC 1.0 0 2009 2010 2011 2012 2013 2014 2014 Hotels experienced strong performance in 2014. Occupancy rates increased across all classes of hotels last year. Average hotel occupancy reached 73% in 2014 compared to 65% in 2013. The largest gains were experienced in the 5 star segment which realized a jump to 71% last year from 61% in 2013. These strong gains in demand translated into revenue increases across the entire industry. RevPAR (revenue per available room) increased 8.3% in 2014 with particularly strong performance in the 5 and 3 star segments which saw RevPAR gains of 9.5% and 15.5%, respectively. HOTEL REVPAR (REVENUE PER AVAILABLE ROOM) 2014 VS. 2013 % CHANGE HOTEL OCCUPANCY RATES 2013 2014 10% 10% 2% QAR 13.6 billion 28 61,000 6% 0% 5 star 4 star 3 star 1 & 2 star All Classes 5 star 4 star 3 star 1 & 2 star 2014 65% 73% average hotel occupancy rate 0% 6% 3% 2013 jobs were directly supported by the industry billion 9% 6% All Classes QAR 8% 9% 0% 8.3% 4.0% 15% 40% 20% The total contribution to GDP was 15% 12% 60% TOURISM SHARE OF NON-EXTRACTION GDP IN 2013* The direct contribution to GDP was came from Europe …DRIVING STRONG HOTEL PERFORMANCE 30% 4% 15% originated from various parts of Asia and Oceania *Source: Ministry of Interior, Tourism Economics 50% Direct Tourism industry share of visitors came from other GCC countries 0.5 Tourism represents an important part of a diversified Qatar economy. Although still in its early stages of development, the tourism sector already directly contributes QAR 13.6 billion to GDP, representing 4% of non-extraction economy. The total economic impact of tourism, including indirect impacts, tallies QAR 28 billion and comprises 8.3% of total non-extraction GDP. Tourism also contributes substantially to the Qatar job market with 61,000 jobs directly supported by the industry. 6% 13.8% 40% 28% Other Arab 70% 8% growth over 2013 Annual rate of growth Other Africa 1.5 TOURISM IS AN ECONOMIC ENGINE… In 2013 million visitors in 2014 Europe 80% Total tourism impact share 2.8 8.2% Americas average hotel occupancy rate *Source: Qatar Tourism Economics …AS INTERNATIONAL TRAVELERS VISIT QATAR IN INCREASING NUMBERS Qatar continues to emerge as a destination for international travelers. Our country received more than 2.8 million visitors in 2014, representing 8.2% growth over 2013. Since 2009, international visits to Qatar have increased 91% with an average annual rate of growth of 13.8%. The Qatar visitor market is diverse. In 2014, 40% of visitors came from other GCC countries, while 28% originated from various parts of Asia and Oceania, and 15% came from Europe. Visits from all world regions have grown substantially over the past five years. Asian and GCC visitor markets have expanded 107% and 102%, respectively, since 2009. Visits from Europe have also surged 82% over the past five years. Arrivals to Qatar by Region …WITH MORE DEVELOPMENT ON THE WAY Qatar was home to nearly 16,000 hotel and hotel apartment rooms on average throughout 2014. This includes 85 hotel properties and 22 hotel apartment entities. Five star hotel properties lead the way with 7,748 rooms across 33 properties. As Qatar anticipates continued increases in international visitation and prepares for major events, such as the World Cup in 2022, significant hotel capacity is under development. Room supply is set to more than double in the coming years with 66 hotels and 14 hotel apartments planned for opening in the next five years. In 2015 alone, QTA anticipates the opening of 20 new properties, which would add nearly 4000 rooms to Qatar’s accommodation portfolio in the coming year. Aside from properties currently under construction, there are proposals for nearly 50 additional properties, under varying degrees of development, for additional expansion in future years. HOTEL ROOM SUPPLY % change, 2013–14 CAGR*, 2009–14 Cumulative growth, 2009–14 16,000 2009 2010 2011 2012 2013 2014 1,481,688 1,699,886 2,057,157 2,346,358 2,611,451 2,826,257 8% 14% 91% 14,000 GCC 556,264 643,550 845,705 952,865 1,090,263 1,124,329 3% 15% 102% 12,000 Other Arab 207,537 226,351 271,344 287,265 293,034 319,418 9% 9% 54% 10,000 Other Africa 20,485 23,917 24,879 31,640 35,027 34,702 -1% 11% 69% Other Asia inc. Oceania 378,619 448,881 511,557 591,648 653,549 782,904 20% 16% 107% Europe 231,310 265,069 301,843 365,840 409,140 421,171 3% 13% 82% 87,473 92,118 101,829 117,100 130,438 143,733 10% 10% 64% TOTAL Americas NUMBER OF PROPERTIES Existing rooms Rooms under development 107 8,000 6,000 hotels and hotel apartments 4,000 2,000 0 5 star CAGR*: Compound Annual Growth Rate Existing 4 star 3 star 1 & 2 star Hotel Not yet classed apartments Next 5 years 80 hotels and hotel apartments Expected openings 2015 20 hotels and hotel apartments 18 Gulf Times Tuesday, February 3, 2015 AUSTRALASIA/EAST ASIA Russian Foreign Minister Sergei Lavrov, left, Chinese Foreign Minister Wang Yi, centre, and Indian Foreign Minister Sushma Swaraj pose for photographs before their meeting in Beijing yesterday. DIPLOMACY ROW WEATHER WOES LOCALS DISADVANTAGED Calls for louder global ‘voice’ at China talks Prosecutor wants Korea ‘nut rage’ woman jailed Japan deploys troops as blizzard hits Hokkaido Australia to review property purchases by foreigners Chinese President Xi Jinping yesterday hailed his country’s relations with India and Russia during meetings that heard calls for developing economies to have more say on the global stage. The visits by New Delhi’s foreign minister Sushma Swaraj and Sergei Lavrov from Moscow come on the heels of a trip to India by US President Barack Obama. Following the meetings in Beijing, Swaraj said: “We have shared interests in governance reform of the international financial system.” Chinese foreign minister Wang Yi added: “We call for the improvement of global economic governance and to increase the voice and representation of developing countries.” Page 24 South Korea’s public prosecutor is seeking a three-year prison term for the daughter of the boss of Korean Air following an incident involving a bag of nuts, the official Yonhap news agency reported yesterday. Cho Hyun Ah, 40, flew into a rage on board a Korean Air flight on December 5 when the attendant gave her a bag of macadamia nuts in a bag rather than on a plate. Cho was a vice-president of the airline at the time. A blazing row ensued in which Cho ordered the pilots to return the aircraft to the gate where she had the chief steward thrown off. A blizzard battered Japan’s northern island of Hokkaido yesterday as soldiers were dispatched to hard-hit areas, local media reported. The troops were sent to Rausu town on the eastern tip of Hokkaido, as snow accumulation reached a record 179cm in the region where wind gusts reached 120kph, Hokkaido newspaper reported. Snow accumulation also reached 41cm in Shari town over a 24-hour period and 37cm in Nakashibetsu town. More than 200 schools were closed on the island yesterday. With a low-pressure system stalled over eastern Hokkaido, the Meteorological Agency warned of blizzard conditions, high waves and avalanche risk through today. Australian Prime Minister Tony Abbott said yesterday he had ordered a review of foreign investment rules to ensure locals were not disadvantaged, media reports said. “The government will shortly put in place better scrutiny and reporting of foreign purchases of agricultural land,” Abbott reportedly said in a broad speech to the National Press Club. “And better enforcement of the rules against foreign purchases of existing homes so that young people are not priced out of the market.” Restrictions apply to temporary foreign residents that are subject to approval by the Foreign Investment Review Board. Abe: Working with the world only way to fight terrorism Reuters Tokyo J apanese Prime Minister Shinzo Abe said yesterday he wanted to debate the possibility of Japan’s military rescuing Japanese citizens abroad, a day after Islamic State militants said they had beheaded a Japanese journalist. The militants said on Sunday they had beheaded Kenji Goto, a veteran war reporter, after international efforts to secure his release through a prisoner swap failed. They killed another Japanese hostage, Haruna Yukawa, a week before. Abe reiterated his denunciation of the militants and said Japan was firmly committed to fulfilling its responsibility as a member of the global community in fighting terrorism and that it needed to be able to protect its citizens. “Preserving the safety of Japanese nationals is the responsibility of the government, and I am the person who holds the most responsibility,” Abe told a parliamentary committee, adding that he wanted to discuss a framework for rescuing Japanese in danger. In a show of defiance on Sunday, Abe vowed to boost Japan’s humanitarian aid to the Middle East. The hardline Islamist group, which controls large parts of Syria and Iraq, released a video purporting to show the beheading of Goto, 47, who was captured in late October. The video was released a week after footage was issued appearing to show the beheaded body of Yukawa, who the militants seized in August after he went to Syria to launch a security company. The killings are fanning calls for Japan’s long-constrained military to be allowed to conduct overseas rescue missions as part of Abe’s push for a more muscular security posture. Abe told a parliamentary panel that Japan, whose military has long been con- strained by the post-World War II pacifist constitution, could not take part in USled air strikes on Islamic State, nor would it provide logistical support. Scope for the military to mount rescue missions is limited by law but the government already plans to submit revisions to parliament to ease restrictions. Even some advocates of changes to make rescues possible, however, say Japan’s military faces difficulty in acquiring the capacity to conduct such missions. Critics say sending troops overseas would just increase the risk. An internal briefing paper for top government officials, seen by Reuters last week, said cases like Islamic State crisis did not meet proposed conditions for Japan to send troops to join allies in combat. It dodged the question of whether planned legal changes would allow rescue missions in such cases, but a Japanese defence official said it would not. Abe’s government had put high priority on saving Goto, who was captured when he went to Syria to try to seek Yukawa’s release. Speaking to reporters yesterday, chief cabinet secretary Yoshihide Suga shrugged off speculation that Japan was ready to pay a ransom, adding that the government had no intention of negotiating with the militants. Goto’s wife, Rinko, who had appealed for his release, said she and the rest of the family were devastated. “I remain extremely proud of my husband, who reported the plight of people in conflict areas like Iraq, Somalia and Syria,” she said in a statement posted on the Rory Peck Trust, a London-based organisation supporting freelance journalists. “It was his passion to highlight the effects on ordinary people, especially through the eyes of children, and to inform the rest of us of the tragedies of war.” An opinion poll by Kyodo news agency on January 25, just after Yukawa was killed, found 61% of respondents supportive of the government’s response. Snow flavoured! Calls for louder global ‘voice’ as China, India, Russia meet Giant panda Weiwei sticks his tongue out during snowfall at a zoo in Wuhan, Hubei province. Under-fire Abbott vows not to resign AFP Canberra A Chief cabinet secretary Yoshihide Suga speaks next to the Japanese national flag, attached with a black ribbon to mourn Japanese hostage victims, at a news conference in Tokyo. ustralian Prime Minister Tony Abbott said yesterday he had not contemplated stepping down, as pressure mounted on his leadership following a controversial decision to make Britain’s Prince Philip a knight. Abbott faced ridicule after naming the nonagenarian consort of Queen Elizabeth II a knight of the Order of Australia last month, incensing members of his ruling coalition who were already dealing with falling poll numbers, policy backflips and an unpopular budget. When asked by reporters if he had considered resigning, Abbott said “no” - but admitted: “I accept that I probably overdid it on awards.” “I have listened, I have learned, I have acted...” he said, in reference to the adverse public reaction. The honour for Prince Philip bemused Australians, many of whom want to cut ties with the British monarchy and become a republic. The media dubbed the award for the non- resident a “knightmare” for Abbott. Abbott insisted he was the right person to lead the government, after reports that some colleagues were under pressure to challenge him. “Let me make it absolutely crystal clear, we were elected in 2013 because the Australian people rejected chaos. And we are not going to take them back to that chaos,” he told the National Press Club in Canberra. “It’s the people that hire and frankly it’s the people that should fire.” Abbott’s Liberal-National coalition romped to power in a September 2013 election but is now trailing the opposition Labor Party 46 to 54%, a Fairfax-Ipsos poll in the Sydney Morning Herald showed yesterday. The poll of 1,400 people questioned at the end of last week also found that Abbott’s rating as preferred prime minister had slipped from 39 to 34%, while Labor leader Bill Shorten had climbed to 50%. “I never came into politics to be popular,” said Abbott, after being asked why people did not seem to like him. The dire polling follows a dismal result in a Queensland state election, which still hangs in the balance, but which delivered a huge swing against the ruling conservative administration. Abbott conceded the government had struggled to get its message across. He promised a more consultative style of leadership and confirmed he would not be making decisions on knighthoods in the future - leaving it entirely to the Order of Australia Council. Outlining his government’s agenda for 2015, Abbott said the focus would be jobs, families, roads, national security and small business as he flagged a new crackdown on extremist groups. He said his “signature” policy for a paid parental leave scheme, which would have paid new mothers 26 weeks of their actual wage capped at A$100,000 (US$77,810) and which has long been criticised as too expensive, was “off the table”. Abbott’s troubles have raised the prospect of a mid-term leadership challenge. Reports have suggested Communications Minister Malcolm Turnbull, Foreign Minister Julie Bishop, or Social Services Minister Scott Morrison could be contenders. But as The Australian’s editor-atlarge Paul Kelly noted, there were “still no serious candidates”. “Look, we’ve had a rough couple of months, I accept that,” Abbott said. Bishop said she had had a “delightful meeting” with Abbott on Sunday night, adding that she supported him. She refused to confirm whether they had spoken about her challenging him for the leadership. “I don’t reveal the details of private conversations I have with any leaders, let alone my own prime minister,” she said. A leadership challenge would revive memories of the sudden removal of Labor prime minister Kevin Rudd in 2010 in a party room coup by his deputy Julia Gillard. Gillard was herself ousted by Rudd in 2013. Current Labor leader Shorten described Abbott’s comments as “a desperate speech from a politically drowning man” only interested in hanging on to his job. “This man has got the wrong policies for Australia in the 21st century. He’s more focused on Buckingham Palace than Beijing,” Shorten said. NZ PM hits back after author’s jibe Melbourne’s climate change plan sparks arbour ardour Reuters Melbourne T rees in the Australian city of Melbourne are replying to emails from the public as authorities seek to highlight the impact of climate change in a country where rising temperatures are expected to outpace global warming worldwide. The city council initiative, which spotlights each of Melbourne’s 77,000 trees on an interactive map, invites visitors to email a tree to report problems such as low-hanging branches or insufficient watering. But it has had an unexpected outcome, with dozens of Melbournians writing to express affection for their favourite trees. “Dear Tree, If you are that big, round, beautiful, low-hanging tree, I think you are my favourite tree ... Keep up the good work,” wrote one correspondent using only the initial “N”. The quirky emails, to which staff respond on behalf of the trees, are building awareness of climate change in Melbourne, regarded as Australia’s most European city, thanks to its architecture and wide tree-lined boulevards. But almost a quarter of its trees, including oaks, elms and planes, are set to die off by the end of the decade, and that figure will rise to almost 40% by 2030, speeded by a devastating 13-year drought that broke in 2012. “As our climate becomes more and more extreme, we’re going to have to look at trees that are fit for purpose,” Councillor Arron Wood told Reuters. “We now have a tar- get of having no more than 5% of one tree species in the city.” Australia faces a rise in temperature of potentially more than five degrees Celsius by the end of the century, the national science agency says. The business district is dominated by plane trees, which are drought resilient and have broad canopies, but are now being scaled back because they shed leaves during long periods of high temperatures, an aspect of the weather expected to worsen. The council plans to plant 3,000 trees a year to double the forest canopy by 2040 and so cool the city by 4 degrees. It hopes residents will pay attention to the city’s future appearance, while enjoying the trees as long as they can. “Dear beautiful Platanus London Plane,” wrote another fan, using the moniker “e”. “I pass you every time I’m in Melbourne. You are so fabulous. And it saddens me that your passing will be sooner than my own. I can’t wait to see you next. Love you.” New Zealand prime minister John Key yesterday hit back at criticism of his government by the country’s Man Booker Prize winner Eleanor Catton, saying she had no more political insight than All Blacks captain Richie McCaw. ‘The Luminaries’ author sparked uproar last week at a literary festival in India when she said she was angry with New Zealand’s treatment of the arts. Her claim that New Zealand was dominated by “neo-liberal, profit-obsessed, very shallow, very money-hungry politicians who do not care about culture” provoked debate across the country. Key said yesterday the 2013 Man Booker Prize winner’s political views carried no more credence than those of McCaw or prominent businessman Peter Leitch, who started a chain of butcheries and trades under the name of ‘The Mad Butcher’. “She has no particular great insights into politics, she is a fictional writer,” Key told Television New Zealand, adding he had read some but not all of ‘The Luminaries’. “Obviously it’s done phenomenally well and I’m really proud of her, but it would be no different from Richie McCaw or the Mad Butcher or anybody else having a view on politics. “They’re absolutely entitled to do that, but her views on politics are no more authoritative than anybody else’s.” Gulf Times Tuesday, February 3, 2015 19 BRITAIN ANNOUNCEMENT APPEAL ART EDUCATION DEBATE Bronze statues ‘may be by Michelangelo’ Mayor urges support for second air ambulance Database lets artists exhibit for free Labour warned over tuition fees cut MPs to vote on ‘3-parent’ babies Two sculptures that languished in obscurity for more than a century may be the only surviving bronze works by Michelangelo, researchers announced in Britain yesterday. The international research team led by Britain’s University of Cambridge and the Fitzwilliam Museum uncovered new evidence linking the two nude works to Michelangelo, whose famed works include the painted ceiling of the Sistine Chapel. Standing at a metre tall, the sculptures are of a young man and an older man riding panthers, and if confirmed the discovery would make them only surviving Michelangelo bronzes in the world. Boris Johnson yesterday urged Londoners to back a £4.4mn appeal for a second emergency medical helicopter for the capital. The charity that operates London’s air ambulance wants a second machine because its only helicopter was unavailable for 55 days last year as it underwent essential maintenance. The mayor said: “We rightly rally together to rapidly raise millions for disasters in other countries around the world but on this occasion the need is right here on our doorstep. Please rally together and support this fantastic campaign.” To donate to the Your London, Your Helicopter appeal, visit yourhelicopter.london. An online database of London spaces where artists can exhibit for free has launched. ArtMap London’s Free Spaces aims to help combat the lack of exhibition space for up-and-coming artists who face rents of up to £2,000 a week. It will act as the contact point for artists and venue owners. Founder Jenny Judova, 26, said: “There are extortionate prices to rent a space for an exhibition and I found that so unfair when there are restaurants and coffee shops with space for free. The craziest place we have listed is the Spitalfields Farm, who are really open to installations.” Other venues include Rolling Stock in Hoxton, a burger joint in a railway arch. Twenty university bosses warned the opposition Labour Party yesterday that it should not cut student tuition fees if it wins the May 7 election. In a letter to The Times newspaper, vice chancellors from universities including Exeter and Bristol, said a possible Labour plan to reduce tuition fees to £6,000 from £9,000 would open up a £10bn funding gap. “The result would be cuts to universities that would damage the economy, affect the quality of students’ education, and set back work on widening access to higher education,” the letter, signed by University of Surrey Vice-Chancellor Christopher Snowden said. MPs will today be asked to make Britain the first country in the world to sanction the creation of IVF babies with DNA from three different people. If they vote «yes» mitochondrial donation techniques aimed at preventing serious inherited diseases will be legalised. The historic debate due to take place today afternoon has divided opinion between experts backing the treatments and opponents who say the move marks the start of a slippery slope towards «designer» babies. Research has shown that mitochondrial donation could potentially help almost 2,500 women of reproductive age in the UK. Plan to ban extremist speakers at universities criticised Writer’s claim that Queen ‘fears’ Charles rule rubbished Guardian News and Media London T he former head of the civil service has criticised the government for treating universities as if they were schools, before an attempt by peers to stop Home Secretary Theresa May’s plans to ban extremists from speaking on university campuses. Lord Butler of Brockwell, who led Whitehall for a decade and was master of an Oxford university college for another, said the government was going too far towards limiting free speech and young adults should be able to have the freedom to hear different opinions. “Universities have got a duty of care to their students to stop them breaking the law,” he said. “But they’ve also got a legal obligation to encourage free speech within the law … The government is really treating universities as if they are schools. Schools have got a duty to teach children what’s right and what’s wrong … but universities are dealing with young adults. The whole point of university is that they should have a good deal of freedom to hear different opinions and make up their own minds on what’s right or wrong. “As somebody said, the radicalisation is much more likely to go on over coffee in students’ rooms rather than at public meetings … I think it’s very likely that this week there will be an amendment to exclude universities … I hope that the government will write into the law alongside it the duty to allow free speech, and that they will look extremely carefully at the directions they are giving under this new law.” The former head of MI5 , senior Tories, academics and legal peers have already made it clear that they want to see the clause about universities removed from the counter-terrorism and security bill when a key vote takes place next week. London Evening Standard London T Queen Elizabeth smiles as she officially opens the new South Lynn fire station, at King’s Lynn in Norfolk, eastern England, yesterday. he Queen has complete confidence in Prince Charles’s ability to reign despite claims in an “unhelpful” biography that questions his suitability as king, sources have told the Standard. They say reports that the Queen and palace aides “fear” Britain is not ready for Charles’s radical new style of monarchy are “wide of the mark”. The Prince’s lawyers are preparing to scrutinise claims made in Catherine Mayer’s new book Charles: The Heart Of A King, to be published this Thursday and serialised in The Times. Mayer — a journalist whose claims of close access to the prince have been forthrightly rejected by his spokeswoman Kristina Kyriacou — writes that the heir to the throne intends to be a campaigning monarch. She says the Queen, who will be 89 in April, and her courtiers feel that the UK is not ready for “shock of the new”. Mayer, a writer for Time magazine, claims Prince Philip is one of his son’s harshest critics and thinks him guilty of “selfish behaviour”. But a senior aide said: “This is simply not the case. The Queen and the prince know the position. He has talked to the Queen about what sort of king he should be. “These reports are wide of the mark. As prince of Wales, Charles has served the Queen and the institu- School spending pledge First ticket offices shut in mayor’s Tube shake-up London Evening Standard London U nion bosses claimed passengers would suffer as Queensway and South Wimbledon became the first stations yesterday to have their ticket offices closed under Boris Johnson’s Tube reforms. Critics said the closures, which will see more ticket machines installed instead, were being rushed through without thought for safety concerns. It also emerged that the online system for people to manage Oyster cards was creaking under pressure from increased use. But Johnson dismissed the attacks, claiming it was time to “quietly get on” with his plans. In a phased station-by-station programme, offices will now be closed with staff moved to ticket halls, gate lines and platforms. Manuel Cortes, leader of the Transport Salaried Staffs Association, said this was John- son’s “biggest and most expensive vanity project to date.” He added: “Talks on the safety implications of closures at over 250 stations have not even been concluded. The mayor doesn’t seem concerned about how millions of tourists will cope with fewer staff to help them on their way.” Labour’s London Assembly transport spokesperson, Val Shawcross, claimed Johnson had reneged on promises to protect ticket offices. She said: “Not only that, he is now intent on axing almost 900 Tube station staff in the process. “Whilst there is obviously a big role for ticket machines to play, there is no substitute for a member of staff, particularly when you have a query more complex than a ticket purchase.” Critics say the reforms will cost £150mn, but TfL says the plans will have net savings of £270mn in total up to 2021. In all, 150 new ticket machines will be installed on the Underground as well as new visitor centres at larger sta- tions such as Victoria, Euston and King’s Cross. TfL says stations will remain staffed at all times while train services are operating. Meanwhile, a written answer to City Hall LibDems from Johnson’s office confirmed that “the increasing popularity” of managing Oyster cards online had led to “quality issues”. It is being used by 1.1mn customers, with over half a million journey statements provided each month. Johnson said on BBC news yesterday: “We’ve put in a huge amount of work with this with London Underground staff and to alert the travelling public as to what is going on.” He added: “We have been round this an awful lot now. We’ve had lots and lots of consultation, I think we should just quietly get on with it.” Stations that already operate without ticket windows include Cannon Street, Embankment, Regent’s Park, Tottenham Court Road and Wood Lane. tion of the monarchy all his life. “He is a serious-thinking man and he more than anyone knows what is expected of him as king. “Of course when and if the time comes he will have his own style, but he understands and appreciates the importance of continuity and tradition more than anyone. “These reports are wide of the mark. As prince of Wales, Charles has served the Queen and the institution of the monarchy all his life” “A lot of the so called new revelations in this book are frankly rehashed. I feel I have read most of it before. In other areas it appears to be very creative.” Lawyers for Charles, 66, will scrutinise the book when it is published on Thursday after expressing concern that the author used “artistic licence” over her claims about meetings with the prince. It will be the first chance they will have had to read the book in full. Kyriacou, Charles’s head of media, said: “It is not an official book. The author did not have the access she claimed.” Clarence House lawyers are poised to take action if there is anything they believe to be “grossly untrue” and “detrimental to the prince”, although no complaints have been made about the extracts so far. Because Govt ‘feared terrorists could weaponise Ebola’ Guardian News and Media London B Prime Minister David Cameron delivers a speech on education at a Conservative Party event in a school in Enfield, north London, yesterday. The prime minister announced that spending per pupil will not be cut, but will not rise in line with inflation under Tory plans. He insisted that this will mean more money for schools overall because of rising pupil numbers. the book is unauthorised, no advance copies were provided to Clarence House. However, in most cases, such books are sent to palace aides to read informally. Sources close to Charles say there is “no one” other than the Queen with whom he would talk about his plans for the monarchy. When such discussions have taken place, they say, nobody else has been present. The prince’s future is also likely to be discussed in a second book, due to be published later this month, by former Downing Street communications secretary Alastair Campbell. Winners And How They Succeed is understood to include a chapter on the Queen, based on Campbell’s experiences in No 10 and on more recent conversations with royal aides. Mayer, who met the prince while researching her biography and spoke to some of his closest aides, claims the prince is “joylessly” taking over more and more of the Queen’s duties. She writes that he feels so passionate about the many causes he champions that - in the words of one courtier - ascending the throne will be like “prison shades” closing for him. In an article for Time, written as she researched the book, Mayer said that: “Far from itching to assume the crown, he is already feeling its weight and worrying about its impact on the job he has been doing.” ritish military experts were asked to draw up guidance at the height of the Ebola outbreak in West Africa late last year on the feasibility and potential impact of terrorists ‘weaponising’ the virus. The ministry of defence has released a heavily redacted report, prepared in October, that identified three different scenarios regarding the exploitation of Ebola for bio-terrorism. Details of the first scenario are entirely blacked out, as are most of those of the second, which is described as “logistically and technically challenging for a non-state group to undertake”. It adds: “Clearly there are practical issues involved with such a scenario that of themselves are often not insurmountable but taken together add to the complexity of successfully undertaking this attack.” The third scenario - details of which were also heavily redacted was described as the “most technically challenging”. The advice was drawn up by the MoD’s defence science and technology laboratory (DSTL) in early October at a time when concern was increasing about the spread of Ebola in West Africa and plans were being put in place to carry out testing of travellers at UK airports. It’s not clear who sought the guidance - and whether it was senior civil servant or a minister - but the report states that it was sought following a phone conversation on “the feasibility of a nonstate actor (NSA) exploiting the Ebola outbreak in West Africa for bio-terrorism”. The document was released by the MoD on Friday following a Freedom of Information request. Jennifer Cole, a senior research fellow at the Royal United Services Institute for Defence and Security Studies (RUSI), said she wasn’t surprised the report had been drawn up. “The US and UK military have been carrying out research for some time into infectious diseases,” she said. “The fact that vaccines are so far along in development is because of concerns that the US has had about the virus being weaponised .” 20 Gulf Times Tuesday, February 3, 2015 BRITAIN OUTBREAK REVEALED TRAGEDY CRIME PEOPLE Second health worker tested for Ebola in London Briton is world’s deadliest sniper Pensioner dies in yacht sea plunge Footballer’s home targeted by thieves Disabled woman ‘left trapped’ on train A military healthcare worker has been flown back to England from Sierra Leone following the likely exposure to the Ebola virus, a government agency said. Public Health England said the worker had likely been exposed to the virus from a needle injury while treating a patient with Ebola. The worker has not been diagnosed with the virus and does not have any symptoms. Another healthcare worker was flown back on Saturday following a similar injury and both are being tested at the Royal Free hospital in London. “Although we have had two similar incidents within a short space of time both appear to be unrelated,” minister for the Armed Forces Mark Francois said The world’s most lethal military sniper is understood to be a Royal Marine. The Sun said the Briton, who has not been named, had served in the Royal Navy’s elite unit for more than a decade and recorded most of his 173 confirmed kills during tours of Afghanistan in 2006-07, having also served in Iraq. The figure puts the corporal, reportedly married and from southern England, ahead of US Navy SEAL commando Chris Kyle, who had 160 confirmed kills to make him the most lethal US sniper. Kyle’s exploits are the subject of a new film called American Sniper, starring Bradley Cooper. A pensioner has died after falling from a yacht into the sea. The 72-year-old was on a leisure trip in the Bristol Channel when he fell overboard off Lavernock Point, Penarth around 12.15pm on Sunday. RNLI lifeboat crews rescued the sailor from the water and emergency services took him to University Hospital of Wales in Cardiff, where he later died, South Wales Police said. An RAF Sea King helicopter was also called but was not involved in the rescue. The man, who is from the Gwent area and has not been named, was thought to have been among a crew of around eight people aboard the yacht when the incident occurred, police said. Burglars made an unsuccessful attempt to break into the home of Manchester United winger Angel di Maria at the weekend, according to media reports. The Sun said Di Maria, 26, was having dinner with his family at his home in Prestbury when a group of thieves tried to smash through the patio doors with scaffolding poles. They fled when an alarm sounded. “At 7.30pm on Saturday, police received reports of a burglary at a house in the Chelford Road area of Prestbury,” said a Cheshire Police spokesperson. “A number of offenders tried to gain access to the property by trying to smash the back door. The alarm was raised before the men got inside and they fled the scene.” A disabled Tube passenger said she was forced to pull the emergency lever for help after becoming “trapped” on a train - only to be told off by the driver. Lisa Bennett, 51, who uses a heavy electric wheelchair, was travelling from Hounslow East to Caledonian Road. Staff at Hounslow East normally call to make sure there will be a ramp to help her get off at her destination. But Bennett, a motherof-five, said when she arrived at Caledonian Road “no one was there and I was shouting down the platform”. “The train pulled away and for the first time in my life I pulled the emergency lever. I told the driver I was trapped... but he said I should have called ahead, which someone should have.” Mugged pensioner to buy new house with donations Guardian News and Media London A disabled pensioner who was violently mugged outside his home has spoken of his amazement after well-wishers raised more than £220,000 for him to move house. Alan Barnes, 67, who is 4ft 6in and visually impaired, suffered a broken collarbone when he was attacked on his doorstep in Gateshead, Tyne and Wear, last Sunday. The attacker rifled through his pockets after shoving him to the ground and demanding money, but ran off when his frail victim called for help. After reports of the attack, a local beautician, Katie Cutler, set up a fundraising page aiming to raise £500 - but donations quickly flooded in from 17,000 well-wishers as far afield as Canada, Holland and New Zealand. Donations topped £220,000 on Sunday - 48 hours after the page was launched - as Barnes said he planned to use the money to buy a new house. The pensioner, who has lived with disabilities all his life after his mother contracted German measles when she was pregnant, lived independently in the Low Fell area of Gateshead but was too afraid to return home after the attack. “I’m not going back there, I decided that instant I wouldn’t go back to that house,” he said. “You would remember it every time you went past that footpath, wouldn’t you?” Speaking to Newcastle’s Chronicle, Barnes said he was “absolutely amazed” at the donations and said he was feeling okay, describing his broken collarbone as merely an inconvenience. He added: “I’m really grateful and a thank you doesn’t seem to be enough for how I feel. I’ve heard of people getting get-well cards but not this.” He met Cutler, who has been nicknamed the “Angel of the North” for her fundraising efforts, for the first time on Sunday. “It doesn’t feel real, I’m so over the moon,” the 21-year-old said. “I think now he could probably buy a nice little bungalow for himself with a nice little garden. “Also I’ve had people contact me with regards to donating kitchens, bathrooms, carpets, offering plumbing services and electrical services, so I think he is going to have a nice place to live.” Barnes is a popular figure in Low Fell and is renowned for being able to quickly calculate how many days old someone is from their date of birth. As of 3pm on Sunday, more than 17,000 people had pledged donations from £5 to £1,000, taking the total to £220,760. One well-wisher, donating £500, wrote: “Your attackers are cowards. They deserve nothing more than being locked up and having the key thrown away.” Another, Douglas Smith, gave £250 and said: “From a Scotsman in Singapore. This situation brings tears to my eyes. I really wish you all the best in the future Alan, you’re a star. And well done Katie for highlighting this, you’re also a star.” Northumbria police have issued an appeal for anyone with information about the attacker. Officer Chris Neil, of Gateshead CID, said: “This was a cowardly assault on a vulnerable man who wasn’t able to defend himself. His disability means he is partially sighted and quite short, and it’s disgraceful that someone would target him. “The victim is quite a wellknown man in the area and this has left him extremely distressed. “We’re doing everything we can to trace the suspect and I would urge anyone who saw this attempted robbery or who has information about the person responsible to get in touch.” Bus roof torn off A bus sits with its roof ripped off on the Kingsway in central London. A number 91 double-decker bus had its roof ripped off after hitting a tree, causing injury to passengers and passers-by, local media reported. Magna Carta originals reunited for first time AFP London T he four surviving original Magna Carta copies yesterday went on display together for the first time as Britain marks the 800th anniversary of a manuscript which has defined rights and liberties around the world. Considered the cornerstone of freedom, modern democracy, justice and the rule of law, the English document forms the basis for legal systems across the globe, the Universal Declaration of Human Rights and the US constitution. In June 1215, the wayward king John agreed to the demands of rebellious barons to curb his Four-year-old among 38 children suspected of rape London Evening Standard London N early 40 children aged under 10 have been identified as rape suspects in London during the past three years, official police figures revealed yesterday. The Scotland Yard statistics show that the youngest child was aged only four and that there were other rape suspects aged five, six and seven. They were among a total of 38 children under the age of criminal responsibility - which begins at 10 - recorded as rape suspects by the Met. The figures, which were provided in response to a Freedom of Information request by the Evening Standard and cover the years 2012, 2013 and 2014, also show there were another 194 sexual offences in London during that period in which the suspect was under 10. Details of the individual cases have not been revealed. But experts have warned that such offending is being triggered in some cases by children watching online porn and trying to copy adult activity. Other cases are thought to involve inappropriate touching or perpetrators who have suffered abuse themselves repeating the actions. Detective superintendent Steve Williams, the head of the Met’s child abuse command, said: “There are children who are behaving in an overly sexualised way. It could be exposure to the Internet or exposure to child abuse that is causing it, but there are a number of different causes. “Our priority is to try to address what is causing this behaviour.” Yesterday’s figures show that 22 of the suspected child rapists under the age of criminal responsibility committed the offence last year. A further 10 child suspects were identified in 2013 and six in 2012. The total for “other sexual offences” - which include crimes such as sexual assault - was also highest last year, with 89 suspects who were under 10. That compares with figures of 68 and 37 for the years before. In some cases, the alleged crimes were carried out by more than one child aged under 10. The increase in child rape suspects mirrors a similar rise in recorded adult sexual offending over the past year. The Home Office has attributed this partly to heightened reporting in the wake of the Jimmy Savile scandal. Many of the child cases are understood to have been referred to police by social workers, teachers or family. The Met emphasised that none of the children identified in yesterday’s statistics had been proved guilty because their age meant charges were not possible. The force said other action was taken, with some children placed under the supervision of social workers. A Met spokeswoman added: “Every allegation is recorded by police as a crime and allocated for investigation. Close liaison with social services follows.” powers and sealed the charter at Runnymede, a meadow by the River Thames west of London. At the British Library in London, the two priceless copies held by the institution were joined by those from Lincoln and Salisbury Cathedrals for a unification event this week that few will get to witness. A total of 1,215 people - drawn from a ballot of more than 40,000 people from 20-plus countries - have won the chance to see the four originals together today. World-leading Magna Carta experts get the chance to study them side by side tomorrow. “This is a really exciting day: the first time ever we have brought together the four surviving original copies of Magna Carta,” Claire Breay, the library’s head of medieval manuscripts, said. “It established that the king was subject to the law and it’s been used in the centuries since it was granted as a defence against arbitrary and unjust rulers. “And, of course, it has enormous symbolic importance as a symbol of rights and justice and freedom around the world.” With each copy framed in individual glass cases, the four manuscripts were installed together behind thick glass on Sunday in the British Library’s Treasures gallery. The four parchments will be moved to parliament for a private display on Thursday, before returning to their respective homes Brown spells out plan for a year of celebrations honouring a document that still has resonance eight centuries on. Nearly a third of the text was dropped or substantially rewritten within 10 years and almost all the 63 clauses have been repealed, with three remaining in English law. However, the principles that justice should be available to all, the law applies equally to all and leaders can only exercise power in accordance with the law continue to be fought for in many parts of the world. The Magna Carta Trust, which looks after the memorial site in Runnymede, believes the charter’s importance is growing. “800 years on, Magna Carta’s best days lie ahead,” it said. Lawyer David Wootton, a Miliband warns Boots boss on taxes Reuters London T Former prime minister Gordon Brown laughs as he delivers his speech on powers for the Scottish Parliament, in Edinburgh, Scotland, yesterday. former lord mayor of London—a role representing the city’s business heartland—said English law was the “common currency” of global business deals precisely due to the safeguards derived from Magna Carta. “Investors regard their money as safe here (in London) because of the protections in the legal system,” he said. Events are being held across England throughout 2015 to mark the anniversary, including a major international commemoration event at Runnymede on June 15. Exhibitions, debates, conferences, church services, lectures, charity dinners, theatre performances, tourist trails, village fetes, and even a national peal of bells are planned. he Labour Party yesterday said businesses’ biggest worry about an upcoming election was that it could lead to an exit from the European Union, rejecting criticism from a chief executive who said a Labour win would be a “catastrophe”. On Sunday Stefano Pessina, the head of international pharmacy chain Wallgreens Boots Alliance said the left-leaning party’s policies were unhelpful to businesses and that a Labour government after the May election would be a “catastrophe” for the country. Pessina also said that it would be a “big mistake” for Britain to leave the EU. Labour leader Ed Miliband said that Monaco-based Stefano Pessina should stop lecturing voters and “start paying his taxes”. Miliband said: “It turns out that the chairman of Boots lives in Monaco and is actually avoiding his taxes. I’ve just got to say to you, I don’t think people in Britain are going to take kindly to being lec- tured by someone who is avoiding his taxes on how they should be voting in the UK general election.” Earlier Labour’s economic spokesman Ed Balls, the man who would become finance minister if they win the election, seized upon Pessina’s comment, turning the fire on Prime Minister David Cameron’s Conservatives by saying the real danger for businesses came from Cameron’s plan to hold a referendum on Britain’s EU membership. “The only tangible thing he (Pessina) says ... was his fear is of Britain leaving the European Union,” Balls told BBC radio. “That’s what I hear from businesses up and down the country all the time ... when I was in Washington a couple of weeks ago, the big fear of American policymakers is a Tory (Conservative) government taking Britain out of Europe.” Cameron has promised the referendum by 2017 to win back Eurosceptic voters who have defected to the anti-EU UK Independence Party (Ukip). He wants to negotiate reformed ties with Europe and, if successful, says he would campaign for Britain to stay in the bloc. Gulf Times Tuesday, February 3, 2015 21 EUROPE 2014 was ‘hottest year on record’: UN agency AFP Geneva T he year 2014 was the hottest on record, part of a “warming trend” that appeared set to continue, the UN’s weather agency said yesterday. Average global air temperatures in 2014 were 0.57 degrees Celsius (1.03 degree Fahrenheit) higher than the long-term average of 14°C (57.2°F) for a 19611990 reference period, the World Cleric appeals relocation ruling A Kurdish Islamic cleric who was imprisoned for threatening Norwegian politicians appealed a court decision yesterday that forces him to move from Oslo to a remote rural area. Iraqi-born Najmuddin Faraj Ahmad, also known as Mullah Krekar, served two years and 10 months in prison for making death threats against Prime Minister Erna Solberg in 2010, then an opposition leader, along with other politicians and three Kurds. Before his release last month, police said Krekar remained a threat to society and recommended he be relocated to an asylum centre more than 500km northwest of Oslo. The relocation to rural Kyrksaeterora, ordered by the Oslo District Court earlier yesterday, is expected to limit Krekar’s personal meetings with supporters. Sweden indicts Syrian ex-rebel Swedish prosecutors have indicted a former Syrian rebel accused of beating a pro-regime fighter in 2012 after a video of the attack was posted on Facebook. The 28-year-old is accused of violating international law – including the Geneva Conventions which govern the treatment of prisoners of war – and of aggravated assault, in what is believed to be the first case in Sweden linked to the conflict in Syria. A video of the beating posted on the defendant’s Facebook account has been cited as evidence against the former Free Syrian Army fighter who has lived in Sweden since 2013. “To my knowledge, there has never been a trial like this,” prosecutor Henrik Soederman told AFP. Meteorological Organisation (WMO) said in a statement. “Fourteen of the 15 hottest years have all been this century,” said WMO secretary general Michel Jarraud. “In 2014, recordbreaking heat combined with torrential rainfall and floods in many countries and drought in some others – consistent with the expectation of a changing climate.” Global sea-surface temperatures also reached record levels, the agency said. United Nations members will meet in Geneva next week for talks on a global climate pact that must be signed in Paris in December for curbing greenhouse gas emissions. The UN seeks to limit warming to no more than 2°C over pre-Industrial Revolution levels, but scientists warn the Earth is on target for double that target – a scenario that could be catastrophic. “We expect global warming to continue, given that rising levels of greenhouse gases in the atmosphere and the increasing heat content of the oceans are committing us to a warmer future,” said Jarraud. The WMO said that only a few hundredths of a degree separated the warmest years. Average global air temperatures in 2010 were 0.55°C above average, compared to 2014’s 0.57°C, and 0.54°C in 2005. Also notable was that the 2014 record occurred in the absence of a fully-developed El Nino system Reuters/DPA Budapest G erman Chancellor Angela Merkel told Hungarian Prime Minister Viktor Orban yesterday that he should give space to opponents of his rule, a nod to critics who say Orban has eroded democratic freedoms. Merkel was on a one-day visit to Hungary, which is a major manufacturing base for German industries but also irks some in Europe with its close ties to Moscow and policies that often stray from the European mainstream. “We talked about the development of our civil societies, and I pointed out that even when you have a broad majority, as the Hungarian prime minister does, it is important to value the role of the opposition, of civil society, of the media,” Merkel said at a joint news conference with Orban. “Our societies thrive when these groups wrestle with each other to find the best way forward and I think this is also an important model for Hungary.” Orban said last year that he wanted Hungary to be “an illiberal state”, explaining that he meant a system of rule that still embraced freedom, but put Hungary first and did not try to emulate the Western consensus A 93-year-old former Auschwitz death camp officer will go on trial in Germany in April charged with at least 300,000 counts of accessory to murder, a court said yesterday. The German defendant, Oskar Groening, will face charges over the 425,000 people believed to have been deported to the camp in occupied Poland between May and July 1944, at least 300,000 of whom were killed in the gas chambers. The regional court in the northern city of Lueneburg said the trial would start on April 21. the very fundamentals. Countries have committed to make emissions-curbing pledges before the Paris gathering – starting next month for those nations that are in a position to do so. Emissions must be slashed by 40-70% by 2050 from 2010 levels and to near zero or below by 2100 for a good chance of reaching two-degree warming, the UN’s Intergovernmental Panel on Climate Change said in a report last year. Merkel and Orban discuss before a joint news conference that followed their meeting in Budapest yesterday. about how a country should be run. In Budapest yesterday, Merkel expressed her discomfort with Orban’s phrase. “I cannot understand the word ‘illiberal’ in connection with democracy,” she said. “We talked about democracy and what constitutes democracy. This discussion must be deepened. I personally pointed out that for me, the roots of democracy are always liberal, though not only.” Orban’s opponents say he has forced independent judges into retirement, stacked state in- stitutions with his supporters, and turned public media into an obedient mouthpiece. Orban denies those allegations, saying that he has a mandate from voters to end years of misrule under his predecessors. In front of reporters, Merkel did not criticise Orban’s friendly ties with Russia. These have caused friction with other European states who believe Russian President Vladimir Putin must be isolated over his intervention in Ukraine. Putin is scheduled to visit Hungary later this month. Merkel said that a ceasefire between Russian-backed separatists and Ukrainian forces in eastern Ukraine must be implemented immediately, but that Germany would not supply weapons to Kiev. Merkel did call for a united front over the crisis in Ukraine. Unity in all the steps taken by Europe thus far is “a high priority”, she said. Addressing Europe’s energy dependence on Russia, which stands accused of supporting the separatists in Ukraine, Merkel said new suppliers had to be found. Orban said there was only one solution in Ukraine, namely “one that leads to peace”, not one that deepens the conflict. Later in the day Merkel met representatives of civil society groups and visited a Budapest synagogue – a visit that her entourage says she will use to highlight the dangers of racial and ethnic hatred around Europe. At home, Merkel has spoken out against Germany’s PEGIDA movement, which has held mass rallies against immigration, while in Hungary the secondbiggest party, Jobbik, has been accused of anti-Semitic and anti-Roma rhetoric. Earlier, Hungary’s antiterrorism police had banned a planned human rights demonstration outside the Germanspeaking Andrassy University, where Merkel was due to meet and talk with students. The protest would be allowed to take place a block away, at a location where the chancellor would not be able to see it, the group Most Mi! (Now Us) said on Facebook. Several thousand demonstrators had gathered in Budapest on Sunday to protest Orban’s “unEuropean” policies. Ahead of the visit, several rights organisations called on Merkel to tackle Orban’s heavyhanded policies. Amnesty International called on her to speak out against what it called Orban’s “witch hunt” against non-governmental organisations, while Reporters Without Borders urged her to demand greater press freedom for journalists. Meanwhile, Germany’s Society for Threatened Peoples called on her to speak out for the rights of persecuted minorities. “We want the chancellor to talk openly about the problem of the racist baiting of the Roma people and also to offer aid to improve their situation,” Jasna Causevic, an official with the organisation, told the Neue Osnabruecker daily. Soldiers deployed to rescue villagers from Balkans floods Reuters Tirana/Skopje S Farmers transport sheep to higher ground after heavy rain caused the Vjosa River to burst its banks and flood their village of Darzeze, near the city of Fier in Albania. German, 93, to face trial over Auschwitz deaths AFP Berlin Some of the data goes back to 1850. Scientists warn that a 4°C warmer Earth would be hit by more catastrophic droughts, floods, rising seas and storms, with wars likely fought over everscarcer resources like water. Fraught UN negotiations for a climate-saving pact, scheduled to enter into force from 2020, are at a difficult phase and campaigners and observers fear a weak compromise as nations continue to disagree of some of Merkel urges Hungary to safeguard democracy Man held near EU Parliament Belgian police arrested a man who had a chainsaw and gun in his car near the European Parliament yesterday, prompting the evacuation of several buildings, prosecutors said. The 32-year-old Slovakian, dressed in military fatigues, said that he wanted to meet European Parliament President Martin Schulz, Belgian media reported. Police later lifted the bomb alert after finding there were no explosives in his car, prosecutors told the Belga news agency. The man later appeared before a magistrate accused of threatening an attack, possessing a prohibited weapon and having a firearm requiring a permit. – a periodic weather phenomenon that has an overall warming impact on Earth’s climate. High temperatures in 1998 – the hottest year before the 21st century – occurred during a strong El Nino. The WMO report is a consolidation of leading international datasets, including research by Nasa, the US National Oceanic and Atmospheric Administration (NOAA), the Met Office’s Hadley Centre and the University of East Anglia’s Climatic Research Unit. Groening, then a member of the Nazi Waffen-SS, was tasked with counting the banknotes gathered from prisoners’ luggage and passing them on to the SS authorities in Berlin, prosecutors in the northern city of Hanover said when he was charged in September. Groening told German daily Bild in 2005 that he regretted working at Auschwitz, saying he still heard the screams from the gas chamber decades later. “I was ashamed for decades and I am still ashamed today,” said Groening, who was employed from the age of 21 at the camp. “Not of my acts, because I never killed anyone. But I offered my aid. I was a cog in the killing machine that eliminated millions of innocent people.” oldiers were deployed in Albania and Macedonia yesterday to help rescue villagers and strengthen flood barriers after rivers burst their banks under heavy rain forecast to continue through the week. A state of emergency was in place in much of eastern Macedonia and parts of northern and central Greece, where the 19th century Plaka Bridge – one of the largest single-arch stone bridges in Europe – was damaged over the weekend by raging floodwaters in the northwestern region of Epirus. No casualties were reported. In Albania, rescue services and army helicopters rushed to the aid of villagers after a river that flows from Greece into Albania – known as the Aous in Greece and Vjosa in Albania – burst its banks over the weekend. Near the Unesco-protected south-central Albanian city of Berat, some of those trapped by the floodwaters called Albanian television stations to appeal for help, including two brothers who had sought refuge in a communist-era bunker. In Macedonia, crisis-response authorities called on residents to join the army and local authorities in tackling the threat from swollen rivers. Worst-affected was the town of Stip, some 90km southeast of the capital Skopje. There, the level of the River Bregalnica had risen by almost 2m. Ex-IMF chief Strauss-Kahn goes on trial for pimping AFP Lille F ormer International Monetary Fund (IMF) chief Dominique Strauss-Kahn went on trial yesterday for pimping as part of a prostitution ring, four years after a sex scandal cost him his job and a shot at the French presidency. The disgraced 65-year-old economist found himself back in the dock – this time in the northern French city of Lille – accused of being at the centre of a vice ring which hired prostitutes for sex parties in Brussels, Paris and Washington. A silver-haired Strauss-Kahn, dressed in a dark suit, slipped past a throng of journalists to arrive early in the wood-panelled courtroom, where he paced up and down with his hands in his pockets in front of the imposing stone bench, where over 40 massive files were stacked. He appeared on edge as he sat, arms folded, while presiding judge Bernard Lemaire read out the charges against him and 13 co-accused, a colourful cast of characters including luxury hotel managers, police, and a brothel owner nicknamed “Dodo the Pimp”. “You are accused of aiding and abetting the prostitution of seven persons between March 29, 2008 and October 4, 2011, and of hiring and encouraging the prostitution of these same persons,” Lemaire told Strauss-Kahn. Procedural applications, such as a request by a lawyer for the former prostitutes involved for hearings to take place behind closed doors, were expected to dominate the first day of the trial. Lurid details of group sex and high-end prostitution are likely to emerge in the trial for “aggravated pimping in an organised group”, a charge punishable by up to 10 years in prison and a fine of up to €1.5mn ($1.7mn). The trial will be the latest in a series of legal woes offering a peek behind the bedroom door of a man once tipped as a potential challenger to former French president Nicolas Sarkozy. The former IMF head, known in France as DSK, saw his career implode in 2011 when he was paraded handcuffed in front of the world’s cameras after a New York hotel maid accused him of sexual assault. Those criminal charges were dropped and the case settled in a civil suit, but six months later Strauss-Kahn’s name cropped up in an investigation into a prostitution ring in northern France and Belgium. Investigators probing the “Carlton Affair” – named after one of the swish hotels in Lille where local businessmen and police officials organised sex parties – found some of the prostitutes involved had been hired to participate in soirees attended by Strauss-Kahn. Prostitution is legal in France but procuring – the legal term for pimping which includes encouraging, benefiting from or organising prostitution – is punishable by a hefty jail term. The crux of the case against the former IMF managing director is whether he knew the women lavishing their attention on him were prostitutes and whether he played a role in organising their presence. DSK admits to being a “libertine” who enjoys orgies but has steadfastly denied knowing the women were paid. Strauss-Kahn: was once considered a potential candidate for the French presidency. 22 Gulf Times Tuesday, February 3, 2015 EUROPE Berlusconi’s community service sentence slashed Reuters/AFP/DPA Milan F ormer Italian prime minister Silvio Berlusconi was granted a request yesterday to end his community service sentence for tax fraud 45 days early for good behaviour, making him a free agent from early next month. Last year, the 78-year-old media magnate had a four-year jail sentence commuted into an order to spend four hours a week for a year at a centre for Alzheimer’s patients, the Sacra Famiglia (Sacred Family) care home at Cesano Boscone near Milan, restricting his movements and political activities. Berlusconi’s petition to have the sentence reduced was filed last month and approved yesterday by Milan judge Beatrice Crosti, over the objection of prosecutors, legal sources said. According to the online edition of daily La Repubblica, the judge agreed to an earlier end of the sentence – from April 23 to March 8 – after recognising that, apart from an episode in which Berlusconi criticised the judiciary while providing evidence in a trial in Naples, Berlusconi had demonstrated good behaviour. From March 8, the four-time prime minister, still the most influential politician in Italy’s centre-right, will get his passport back and no longer have any restriction on his movement. A close aide said however that Belusconi, who is 78 himself, would continue to visit the elderly patients. “It is very good news, his good behaviour was there for everyone to see,” Giovanni Toti told TGCOM 24 television. “He performed his social service very seriously and accepted a conviction we continue to regard as unjust. He has purged his sentence and will continue to visit the Sacra Famiglia.” Berlusconi’s conviction cost him his seat in the Senate and prevented him from running for election for six years, restrictions that he is still battling to have removed. He has appealed to the European Court of Human Rights in Strasbourg and is also hoping for a legislative reprieve from Prime Minister Matteo Renzi, with whom he has been working closely to draft electoral and constitutional reforms. A political storm blew up last month when Italian media discovered a last-minute government amendment to a tax bill Berlusconi: will no longer have any restriction on his movement from March 8. that would have de-criminalised balance sheet fraud for any sum below 3% of a company’s annual income. The amendment would have wiped out Berlusconi’s conviction and meant he was once more eligible for office. Renzi backed down after an outcry from much of his own centre-left Democratic Party but, rather than just scrap the amendment, he put the whole bill on ice and said he would review it at the end of this month. Media magnate Berlusconi was ousted from his seat in the upper-house Senate in November 2013 and banned from public office for six years under 2012 anti-corruption legislation. The “Severino” law provides for such bans for any politician sentenced to prison for two or more years. After a series of appeals, Berlusconi was definitively convicted of tax fraud in August 2013 and sentenced to four years in prison. That was later reduced to the community service order in line with Italian judicial practice of not sending non-violent criminals over 70 to jail. As his Forza Italia party essentially revolves around him with the backing of his media empire, Berlusconi was able to retain its leadership. The centre-right grouping retains considerable influence in parliament but has slipped badly in the opinion polls over the time its leader has been making his visits to the care home. Under the terms of the community service, Berlusconi needed permission to leave his residence over weekends and was subject to a nightly curfew. That did not prevent him travelling regularly to Rome for negotiations with Renzi, with whom he concluded a co-operation “pact” in June 2014. That deal ensured that Berlusconi delivered vital votes to help Renzi steer a shake-up of Italy’s labour laws onto the statute book and a new electoral law through the Senate. Renzi was however widely seen as having betrayed the pact last week by ignoring Berlusconi’s reservations when he successfully pushed for his candidate, Sergio Mattarella, to be- come Italy’s new president. Mattarella, who once resigned as a minister over a law favouring Berlusconi’s media empire, is due to be sworn in today. Berlusconi was widely seen as wanting a more accommodating figure in the hope that his ban from the Senate could be overturned by a presidential pardon. The tax case was only one of a series of legal cases in which Berlusconi has been embroiled for years. He was convicted in 2013 of paying for sex with a minor, a 17-year-old dancer nicknamed “Ruby the Heartstealer” who allegedly attended what became known as “bunga-bunga” parties at his villa in Milan and other residences. An appeal court overturned that conviction last year, saying there was insufficient evidence that Berlusconi knew Ruby was under age. The case will finally be concluded in the Court of Cassation in a fresh hearing due to start in March. Also still rumbling through the legal system is a case in which Berlusconi is charged with bribing a Senator to join his party in 2006 as part of a plot to destabilise the centre-left government of the time. Bank error in your favour: Monopoly with real banknotes By Paul Aubriat, AFP Saint-Avold, France T here can’t be a Monopoly fan in the world who has not dreamed of one day playing a round with real money. Now, for the 80th anniversary of the game’s first appearance in France, manufacturers are providing exactly that – at least for 80 lucky buyers. Only one set will land the major jackpot, in which every game note is replaced by real money – for a total windfall of €20,580 ($23,268). In addition, 10 sets will contain five real €20 notes, two €50 notes and one €100 note. A lesser prize can be scooped in 69 sets, which will have five €10 notes and five €20 notes. “We wanted to do something unique,” said Florence Gaillard, brand manager at Hasbro France, which rolled out the prize sets yesterday. “When we asked our French customers, they told us they wanted to find real money in their Monopoly boxes,” she added. The operation to switch the Iceland to build first Norse temple in 1,000 years Reuters Reykjavik I celanders will soon be able to publicly worship at a shrine to Thor, Odin and Frigg with construction starting this month on the island’s first major temple to the Norse gods since the Viking age. Worship of the gods in Scandinavia gave way to Christian- notes was carried out in secret, in the small eastern town of Creutzwald, where the games are packed up before being shipped throughout France. “First of all, it wasn’t easy to get the notes. They had to be escorted discretely,” explained Gaillard. Appropriately for a game where players try to cruelly bankrupt their opponents, Monopoly even roped in a bailiff to count and re-count the real notes. “When they asked me, I was giddy as a child,” said the bailiff in question, Patrice Wimmer, an aficionado of the game. However, they discovered a problem: the sets with the real notes expanded the box ever so slightly, making the packaging out of kilter – a tell-tale sign. As for the weight, there was no discernable difference between the real notes and the fake money. “The difference is marginal, unless you turn up at the shop with precision scales,” said Wimmer. The board game of Monopoly was created after the Great De- pression in the United States and has been tearing families and friends apart ever since. Fiercely competitive, the object of the game is to buy property around the board of varying quality, then build “houses” and “hotels” on one’s property empire, charging opponents rent if they are unfortunate enough to land on your square. The winner is the last person standing after everyone else is left penniless and destitute. Even a short game can last several hours as the eventual winner grinds down opponents note by note until they have nothing left. The longest game in history lasted 70 straight days, according to the Hasbro website. “The rules are simple, everyone knows them, anyone can play,” said Gaillard. Hasbro says that its moneyspinning board game is available in 111 countries and in 43 languages. There are 500,000 sets sold each year in France alone. The 80 lucky sets are hidden within 30,000 boxes of different types of game – classic, junior, electronic and “vintage”. High priest Hilmar Orn Hilmarsson leads a procession of fellow members of the Asatru Association, a contemporary Icelandic pagan society, at the Pingvellir National Park near Reykjavik, in this June 21, 2012 file picture. Construction of the first major Norse Pagan temple since the Viking age will begin in Reykjavik in end of this month. ity around 1,000 years ago but a modern version of Norse paganism has been gaining popularity. “I don’t believe anyone believes in a one-eyed man who is riding about on a horse with eight feet,” said Hilmar Orn Hilmarsson, high priest of “Asatruarfelagid” (Asatru Association), an association that promotes faith in the Norse gods. “We see the stories as poetic metaphors and a manifestation of the forces of nature and human psychology.” Membership in Asatruarfelagid has tripled in Iceland in the last decade to 2,400 members last year, out of a total population of 330,000, data from Statistics Iceland showed. €500 banknotes are seen on a Monopoly game board as Hasbro employees prepare envelopes with cash in Saint-Avold, eastern France. Toy maker Hasbro, celebrating the 80th anniversary of the iconic board game, is offering real money inside some game boxes. The biggest prize is over €20,000. Erdogan vows to eradicate ‘cancer cells’ in judiciary AFP Istanbul T urkish President Recep Tayyip Erdogan has vowed to eradicate “cancer cells” in the judiciary, launching a new attack against the supporters of his rival, US-based imam Fethullah Gulen. Erdogan accuses Gulen’s powerful movement of being behind a sweeping corruption probe that rocked his government in December 2013 while he was prime minister. Firing a new salvo against Gulen’s supporters in the judiciary, Erdogan said: “A gang has attempted to stage a coup against the government with the help of resources provided to them for the security of the country and the interest of justice.” Gulen, an Erdogan allyturned-foe, has vehemently denied Erdogan’s suggestions he instigated the probe. Thousands of his supporters have held influential jobs in high places in the police and judiciary. But the Turkish strongman has struck back, sacking scores of judges and prosecutors as well as pushing through laws in a bid to tighten his grip over the judiciary. In December, the country’s top judicial body dismissed four prosecutors who oversaw the corruption investigation. “In the new Turkey, we will work hand in hand to make sure we can eradicate these cancer cells that have invaded the whole society,” he said in a speech at the Turkish Justice Academy in Ankara. “It is not possible for judges and prosecutors who act upon the order of others instead of law to serve justice,” he added, calling the launch of the corruption probe “a catastrophe”. The corruption scandal, which dragged down four of his cabinet ministers, posed one of the most serious challenges to Erdogan’s 11-year rule as prime minister. Erdogan, who came out fighting from the crisis and became president last August, labelled the graft probe an attempted “judicial coup”. Sarkozy under pressure to block FN candidate in French election run-off Reuters Paris N icolas Sarkozy, the former president now heading France’s main conservative opposition, came under pressure from allies and foes yesterday to endorse rival Socialists in a by-election runoff to ensure the defeat of the National Front (FN). The anti-immigrant farright party came out ahead with 32.6% in Sunday’s first round vote for the parliamentary seat in the eastern Le Doubs constituency left vacant by Pierre Moscovici, a Socialist deputy named EU commissioner. The Socialist candidate came in second with 28.9% ahead of the conservative UMP candidate, setting the stage for Socialist-National Front duel next Sunday. France’s mainstream parties have in the past put differences aside to endorse whichever of their candidates stood the better chance of defeating the FN in run-off votes. But Europe 1 radio said that Sarkozy – who has said he wants to lure their voters back to the UMP – was reluctant to back either candidate this time. “The National Front would disfigure France,” UMP deputy president Nathalie KosciuskoMorizet said on BFM TV, adding she was in favour of endorsing the Socialist candidate. Senior Socialists also called on Sarkozy to set aside traditional political rivalries. “Why does Nicolas Sarkozy not make a call for the vote? Because he wants to steal votes from the National Front in the (2017) presidential election,” Socialist Party chief JeanChristophe Cambadelis said on LCI television. “But now it’s the National Front that’s stealing votes from the UMP. “I call on the UMP to collec- Sarkozy: reluctant to back a non-UMP candidate. tively take up its responsibilities.” Sarkozy and other UMP bosses are set to make their decision at a meeting today. Some conservatives have acknowledged that Sarkozy’s return to politics late last year has not given the divided, cashstrapped UMP the boost he had promised. It is still unclear whether he or a rival will secure the party’s ticket for the 2017 presidential election. The Socialist Party has seen its ratings improve after President Francois Hollande was seen to handle well the aftermath of Islamist attacks last month that left 17 people dead in three days of bloodshed. But it still needs a further boost ahead of local elections in March and regional elections later in the year, in which they risk heavy losses to the National Front. The loss of the parliamentary seat in the Doubs, an industrial district struggling with high unemployment, would weaken further their control of the National Assembly after the defection of one of their lawmakers to the far-left last month deprived them of an absolute majority. Poorest Croatians to get their debts wiped out under new government scheme Tens of thousands of Croatia’s poorest citizens could have their debts wiped out under a new government scheme which came into effect yesterday. Dubbed “fresh start”, the one-time scheme, adopted by Prime Minister Zoran Milanovic’s centre-left government last month, affects some 60,000 people in the country of 4.2mn. The measure concerns Croats whose bank accounts have been blocked for more than a year and whose debt is lower than 35,000 kunas (€4,500, $5,300). Under the deal, debts will be written off by telecoms operators, major banks, the country’s four main cities, several public firms, such as HEP electricity company, and tax authorities. “This is a social measure of which we are proud,” Milanovic, who faces general elections later this year amid major discontent with his government, said earlier. “This is an emergency measure, the system cannot rely constantly on such moves .... (but) we are doing everything possible to facilitate the lives of people affected by this long and exhausting crisis.” To be eligible, citizens should be either receiving social welfare or have a monthly income of no more than €166. They must also have no savings or second home. Applications must be submitted by the end of June. In December more than 322,000 Croatians had their bank accounts blocked due to unpaid bill while their debts amounted to €4.1bn ($4.6bn). The new measure could cost up to €46mn, according to official figures. Gulf Times Tuesday, February 3, 2015 23 EUROPE Russian conscripts fear Ukraine deployment: activists AFP Moscow R A pro-Russian fighter guards a maimed Ukrainian soldier at a hospital in Donetsk. Russian conscripts are coming under growing pressure to sign up as professional soldiers and fear they might be sent to fight alongside separatists in Ukraine, rights activists said. West must be ready for long stand-off, says Nato official Reuters Oslo T he West must be ready for a long stand-off with Russia over Ukraine and not quickly resume normal ties as it did after the 2008 Georgian war, a top Nato official said yesterday. “Our strategy has to be one of patience and consistency. Russia expects us to give up the sanctions and go back to business as usual, without changing its own conduct,” Deputy Secretary General Alexander Vershbow said in a speech to the Leangkollen foreign policy conference in Oslo. “That is basically what we did after the war in Georgia in 2008. But this time around, having chosen our course, we must stick to it,” Vershbow, Nato’s number two civilian official and a former US ambassador to Moscow, said. Russia and Georgia fought a war in 2008 over the breakaway regions of Abkhazia and South Ossetia. The war severely damaged relations between Moscow and the West, but drew no direct sanctions, and the European Union and Nato quickly went back to business as usual with Moscow. Just three months after the Georgian war, the EU relaunched talks with Russia on a partnership pact, and seven months after the war Nato resumed formal ties with Moscow. Vershbow said that Nato did not seek confrontation with Russia and was not looking for regime change. “What we do want is for Moscow to change its behaviour ... and to return to the spirit of cooperation ... this may be a long time coming, and will call for strategic patience, but I don’t think we have any alternative,” he said. Following Moscow’s annexation of Ukraine’s Crimea region last March and what Nato says is the direct involvement of Russian troops in supporting separatists fighting in eastern Ukraine, the West’s response has been tougher. The EU and the United States have imposed economic sanctions on Russia, and Nato has suspended all practical co-operation with Moscow. Vershbow said Russia has appeared determined to detach itself from Europe since Vladimir Putin’s return to the presidency in 2012, to assert itself in its own neighbourhood, and to seek to build alternative groupings to the West. With frequent snap military exercises, like one currently under way in the Kaliningrad region, Moscow seemed determined to “surprise, shock and intimidate”, he said. ussian conscripts are coming under new pressure to sign up as professional soldiers and fear being dispatched to fight in Ukraine alongside Moscow-backed separatists, rights activists said yesterday. Activists sounded the alarm after a new spike in complaints from recruits doing compulsory military service and their families, as peace talks have broken down and fresh fighting is erupting in eastern Ukraine. Activists and family members fear that once the conscripts sign up to become professional soldiers, they could be sent to eastern Ukraine where fighting has killed more than 5,000 since April. Ella Polyakova, head of the Soldiers’ Mothers of Saint Petersburg, said that her group, which campaigns against abuses in the army, had received some two dozen complaints since December. According to the complaints, most of them anonymous, once conscripts sign contracts to become professional soldiers, they risk being sent to take part in drills in the southern Rostov region, on the border with Ukraine. “People are very afraid,” Polyakova told AFP. “They don’t say directly what they are afraid of but their fear is obvious.” Among those who have come under pressure to sign contracts are soldiers serving in Siberia, Saint Petersburg, the northern Murmansk region and Nizhny Novgorod in central Russia. Alexei Usharev, whose 20-year-old son serves in motorised rifle troops, is among the concerned parents who have turned to Polyakova’s group. In December, his son and fellow conscripts serving outside Saint Petersburg were told to sign a contract to become professional soldiers so that they could go on three-month drills in the Rostov region, said Usharev. “They were assembled in a hall and given papers,” he told AFP. Usharev quoted his son as saying: “Everyone signed, and I signed.” “He yielded to mob mentality,” Usharev said of his son, stressing he did not want him to sign the contract because he may be deployed to Ukraine. “In 10 days they are going to the Rostov region.” Sergei Krivenko, head of Citizen and the Army, said that his Moscow-based group had received some 10 similar complaints since November. He said that there is no presidential decree on the deployment of troops abroad, meaning that it is illegal to send both conscripts and professional soldiers across the border. However, draftees are better able to refuse to perform an illegal order than career soldiers, Krivenko said. The Kremlin insists it is not a party to the conflict and denies Russian troops are on the ground in eastern Ukraine. Irina Paikacheva, a Murmansk-based activist working with servicemen and their families, said contract soldiers serving in the region were being prepared to be dispatched on a mission, apparently to the border with Ukraine “and further”. President Vladimir Putin said in December that any Russians fighting in Ukraine had gone there as volunteers “following the call of the heart”. Activists complain their attempts to get the authorities to probe soldiers’ deaths have been stonewalled. The defence ministry declined comment. Some observers say Russian society is now more polarised than at any time in the country’s post-Soviet history. Opinion polls show that Russians are increasingly concerned with the effects of the economic crisis and growing instability next door. According to a new study by state-controlled pollster VTsIOM, more than a quarter of Russians (26%) said fighting between Russia and Ukraine was possible, up from 17% last October. Fifty-four per cent said a war between Russia and Ukraine was either unlikely or impossible, down from 70% last October. Ten per cent said the war was already under way. Separatists vow to boost forces to 100,000 troops Reuters/AFP Donetsk S eparatist rockets streaked across hills in eastern Ukraine yesterday as rebels pounded the positions of Ukrainian government troops holding a strategic rail town while both sides pressed ahead with mobilising more forces for combat. The separatists, whom the West says are armed by Russia and supported by several thousand Russian troops, have also defiantly announced a general mobilisation plan which they said would boost their fighting forces to 100,000 men. The pledge to dramatically escalate a nine-month conflict that has already left at least 5,100 people dead came as the rebels battled to encircle the beleaguered transport hub of Debaltseve. “There will be general mobilisation in the (separatist) ‘Donetsk People’s Republic’ in 10 days’ time, we plan on mobilising up to 100,000 men,” rebel leader Alexander Zakharchenko told the separatist news agency DAN. Ukrainian army spokesman Andriy Lysenko said the rebel call-up meant they “don’t have the human resources and haven’t achieved their objectives, that is taking the strategic town” of Debaltseve. Kiev authorities announced at the end of January that they also were calling up 50,000 troops in the face of the latest rebel offensive. Kiev’s military said five more Ukrainian soldiers were killed in clashes while municipal authorities in the big rebel-controlled city of Donetsk said 15 civilians were killed at the weekend by shelling in a surge of violence following the collapse of a new peace effort on Saturday. Talks between Ukraine, Russia and rebel officials in Minsk, Belarus, had raised hopes of a new ceasefire to stem the violence in a conflict which has claimed more than 5,000 lives. But they broke up without progress with Ukraine and the separatists accusing each other of sabotaging the meeting. A man gestures at a staircase at a multi-storey block of flats damaged by shelling in Yenakieve town, northeast from Donetsk. Donetsk reverberated to the thud of artillery and mortar fire through the night and several homes were destroyed with at least one civilian death yesterday. But separatists kept up attacks on Debaltseve, to the northeast of Donetsk, in an attempt to dislodge government forces there. The outskirts of Yenakieve and Vuhlegirsk, both on the main highway to Debaltseve, were under heavy fire as rebel multiple rocket launchers and artillery pummelled the positions of Ukrainian troops in the area. At one point, a salvo of around three dozen rockets fired from rebel positions screamed across surrounding hills towards Debaltseve. It was followed 15 minutes later by incoming fire from government forces. “The toughest situation is around Debaltseve where the illegal armed formations are con- tinuing to storm the positions of Ukrainian military,” military spokesman Andriy Lutsenko told a briefing. But he said Ukraine’s forces in the town were enough to hold it and he denied government forces were encircled. The Western powers support Kiev’s view that a peace deal reached last September, which included a ceasefire and a commitment for foreign fighters and military equipment to be withdrawn from Ukraine, is the only viable roadmap to ending the conflict. But the separatists, who have declared their own “people’s republics” and have notched up several military successes since then including taking Donetsk airport from government troops, now appear to want to negotiate a new blueprint. German Chancellor Angela Merkel appealed for a ceasefire to be urgently restored in Ukraine, under the terms of the Minsk peace plan, and said that Germany would not support Kiev’s military forces through deliveries of weapons. The New York Times reported on Sunday that President Barack Obama’s administration was however taking a new look at providing Ukrainian forces with defensive weapons and equipment in the face of the rebel offensive. “A comprehensive approach is warranted, and we agree that defensive equipment and weapons should be part of that discussion,” a Pentagon official told the Times. US Secretary of State John Kerry is set to jet into Kiev on Thursday to pledge Washington’s support during talks with Poroshenko and Prime Minister Arseniy Yatseniuk. The separatist rebellion erupted last April after Russia annexed Ukraine’s Crimea in response the ousting of a Moscow-back president by street protests in Kiev which ushered in a government committed to integration with Europe. Moscow denies it has any regular troops in Ukraine despite what the West and Kiev say is incontrovertible proof. In a street on Yenakieve outskirts, a shell landed directly onto a 3rd floor apartment of a ninestorey building, killing a woman and wounding her husband. “We had to climb across the balcony to evacuate the man, and we left her lying in the rubble. She was picked up later by a sanitary team,” said Anatoly Pomazanov, 42, who owns a grocery shop in the building. “It is like this every day. The shelling is incessant. We keep children in cellars. We let them out only during lulls in shelling, for about 30 minutes at most. I want to ask President (Petro) Poroshenko: are we also Ukrainians or simply targets?” Several residents were seen loading bags in cars and hastily leaving the neighbourhood. Natalya, 68, who with her daughter lives in an apartment a floor below the one destroyed, was weeping. “Tell me what do I do now? This is all I had, the soldiers are 2km away, there are no targets here.” Dmytro Boichuk, 78, a retired miner said people were already immune to the shelling. “We are numb. We go about our businesses. Someone gets killed, someone gets wounded, but we carry on.” Over the past three days Ukrainian forces had evacuated 1,872 people from three towns worst hit by fighting, including Debaltseve. In the self-proclaimed rebel capital Donetsk, military-aged males met the separatist leader’s call-up announcement with scepticism. “I wouldn’t give it too much credence,” said Alexander, 28. “Either it’s wrong or they’re saying it for Ukrainian media,” said the pro-separatist transport manager. “But if it’s true, the aim is to kill the entire population of Donetsk,” he said, adding that Zakharchenko was “losing the support of those who supported him”. Web-designer Vitaly, 24, said the call-up would lead nowhere. “Every day, I feel a little bit more a hostage” of the separatist authorities, he said. The latest attempt at a negotiated ceasefire collapsed on Saturday, with the Organisation for Security and Co-operation in Europe (OSCE), which is involved in the talks along with Russia, saying that rebels “were not even prepared to discuss implementation of a ceasefire and withdrawal of heavy weapons”. The rebels say they now want to redraw the demarcation line between the two sides to include gains they have made since ripping up a shaky truce and pushing into Ukrainian territory. Dutch expert team back at MH17 crash site AFP The Hague A Dutch team is at the MH17 crash site in war-torn Ukraine to collect more remains of the 298 people killed when the Malaysia Airlines jetliner crashed in July, officials said yesterday. “At the moment there’s a small team at the crash site,” Dutch defence ministry spokes- woman Marloes Visser told AFP. “They’re there to pick up body parts which have been collected by local authorities at a particular spot.” Most of those on board the Boeing 777 when it was shot down over eastern Ukraine on July 17 were Dutch, and just three of the dead have yet to be identified by forensics experts in the Netherlands. Experts hoped the latest remains could help with the iden- tification of the final three, Dutch news reports said. Winter conditions meant the team will not search the area and the remains are to be flown back to the Netherlands on Saturday, Visser said. Their job has also been complicated by heavy fighting in the nearby key Ukrainian town of Debaltseve, in the escalating conflict that has left at least 5,100 people dead since April. Visser said the Dutch team “is not armed as they aren’t part of the conflict”. Kiev and the West have claimed that the airliner was shot down in the conflict-torn area by separatist fighters using a BUK surface-to-air missile supplied by Russia. Moscow denies the charges, pointing the finger at Kiev. Dutch experts last year repatriated parts of the plane to be reconstructed as part of a probe into what caused the crash. A file photo taken on November 16 last year shows members of a Dutch expert team watching as parts of the wreckage of the Malaysia Airlines Flight MH17 are removed and loaded onto a truck at the crash site near the village of Hrabove in eastern Ukraine. 24 Gulf Times Tuesday, February 3, 2015 INDIA TRAGEDY ELECTRICITY EMPLOYMENT CRIME TECHNOLOGY Netball player dies at National Games Punjab’s urban areas to have underground cables Scheme has cut down rural migration: minister ‘People-friendly but tough police needed’ Village adopts French model for safe water Tragedy struck the 35th National Games when a young netball player from Maharashtra suddenly collapsed and died during a practice session in Thiruvananthapuram yesterday, according to the organisers. Mayuresh Pawar, 21, representing the netball team of his home state, suffered dizziness and fell unconscious around 1pm. His teammates rushed him to a hospital but by that time he died, according to an official. A Games official said Pawar’s team had played against Chandigarh in the morning. The body has been kept at the Thiruvananthapuram Medical College Hospital where an autopsy will be done and the real cause of death would be known, the official said. All urban areas in Punjab will have underground cables for power supply to ensure wire-free roads, a spokesman said yesterday. The project will be executed at a cost of Rs20bn within the next two years, he said. “With a view to conserving energy, Punjab has adopted various technical measures and innovative initiatives that resulted in dropping of considerable peak demand by about 1,000 MW and savings of 1,200 MUs (million units) annually besides ensuring cutting down transmission and distribution (T&D) losses and checking theft of energy,” the spokesman said. “Punjab will also be the first state in the country to have all urban areas with underground power cables network,” he added. The rural employment guarantee act has lessened people’s migration from villages to cities for work and the government would work towards strengthening the scheme, Rural Development Minister Birender Singh said yesterday. “The Mahatma Gandhi Rural Employment Guarantee Act (MGNREGA) is a scheme which will be strengthened. We will not do anything to dilute it,” Birender Singh said in New Delhi. The scheme was launched by the Congress-led United Progressive Alliance (UPA) government during its first term to tremendous electoral advantage. Singh said that for his ministry, the biggest job of MGNREGA is to generate employment among the rural poor. Home Minister Rajnath Singh yesterday said “people-friendly but tough” police were needed to tackle criminals and terrorists. Speaking to police officials in Bengaluru after reviewing the law and order situation in Karnataka, Singh instructed the authorities to take action on reports of discrimination against people from the northeastern states living there, the ministry said in a statement. The home minister also asked the state administration to remain vigilant on illegal migration from Bangladesh. Action against the sale of pre-activated SIM cards in the state was also discussed. Singh asked Karnataka police to fill up all its vacancies - which was nearly 20% of its total strength - on a priority basis. Thanks to an innovative French technology that purifies contaminated water from lakes and ponds, residents of an arsenic-contaminated village in West Bengal now have access to safe drinking water. Not only that, inhabitants of Madhusudan Kanti village in Gaighata block of North 24 Parganas district are also packaging the safe water and selling it to neighbouring villages, a release said. “This is an innovative model from a joint venture of Sulabh International and French organisation 1001 Fontaines, which through various stages of purification provides safe drinking water from any water body like rivers or ponds,” Sulabh founder Bindeshwar Pathak said in the statement. Eradicate evils, say Muslim scholars India-China ties at a new phase, says Xi Jinping IANS Hyderabad M uslim leaders and organisations from various schools of thought came together on a common platform to launch a campaign here to eradicate evils from the society. The eight-day “Eradication of evils” campaign was launched with a public meeting here on Sunday night. Addressing a huge gathering of men and women at Khilwat Ground in the old city, the Islamic scholars voiced concern over the fast spreading evils like alcohol, drug addiction, interest, dowry, and immorality. The speakers called on all Muslims, especially the youth, to not only protect themselves from this “flood of evils” but also save others by participating in such movements. Expressing concern over misuse of social networking sites by youth to indulge in immoral activities, they felt that instead of using technology as a tool for development, the new generation itself has become a tool in the hands of such sites. They underlined the need to evolve a mechanism with the participation of all to help poor Muslims and thus save them from exploitation by financers. Renowned Islamic scholar Maulana Mufti Sadiq Mohiuddin Faheem, who presided over the meeting, advised parents to ensure that their children are educated and trained in accordance with the teachings of the Holy Qur’an. Khaja Arifuddin, president of Jamaat-e-Islami, Andhra Pradesh and Odisha units, said that the Qu’ran describes Muslim ummah as the best nation produced for mankind, who enjoin what is right and forbid what is wrong. He said it was high time that the community realised its responsibility and worked to fulfil it. M K M Zafar, president of Jamaat’s Greater Hyderabad unit, said they made the campaign a collective effort by involving all sects of the community. IANS Beijing C External Affairs Minister Sushma Swaraj and Chinese President Xi Jinping face the media as they greet each other before a meeting at the Great Hall of the People in Beijing yesterday. Don’t use judicial forums for political agenda, SC tells VS IANS New Delhi T he Supreme Court yesterday criticised former Kerala chief minister V S Achuthanandan for using judicial forums to drag on his fight against political rivals. The court threatened to impose exemplary costs if it found that the matter being raised before it was devoid of merits and he was using judicial forums for political agenda. “Have you made any allegation of corruption against the present chief minister (Oommen Chandy of Kerala)? You are not taking any responsibility. Are you fishing in troubled water?” said the apex court bench of Justice T S Thakur and Justice Adarsh Kumar Goel as Achuthanandan’s counsel sought the adjournment of the hearing. Asking Achuthanandan’s counsel if his client was ready to file an affidavit alleging corruption against Chandy, the court said it would impose heavy costs if it found him to be using judicial forums for political agenda. Achuthanandan’s counsel wanted to take instruction on this count. Noting that Achuthanandan was a former chief minister and the present leader of opposition in the Kerala assembly, the court said: “You will not let this issue rest. You want this matter in press. You want to keep it alive. You want to take political mileage.” Noting that even the Kerala High Court had said that Achuthanandan was only dragging on the matter, the court said: “The high court says that you are only dragging on. You get political mileage in keeping the issue alive.” Giving Achuthanandan’s lawyer two weeks’ time to place before it the judgment of the high court which was pronounced on January 30, the court said: “You argue it on next date. We will not allow you to drag it. We will not allow you to use judicial forums for settling political scores.” The court made it clear that if it was not persuaded about the contention for further investigation in the palm oil import scam being sought by the Communist Party of India (Marxist) veteran, it would impose a “heavy cost.” The counsel wanted to place before the court the Kerala High Court judgment rejecting Achuthanandan’s plea challenging the Kerala government order of September 13, 2013, withdrawing prosecution in the alleged corruption in import of palmolein oil during 1991-92. While dismissing Achuthanandan’s plea, the high court held that since the application for the withdrawal of prosecution by the state government had already been declined by the vigilence court and the same order had been upheld by the high court on January 8, the Kerala government order of September 13, 2013, for withdrawing prosecution in palm oil case was of no consequence. The case relates to the import of palm oil during 1991-92 at “inflated” price by the then Congress government headed by late K Karunakaran, from a Malaysian firm, allegedly causing a loss of Rs23mn to the state exchequer. Chandy was then finance minister. hinese President Xi Jinping yesterday met India’s External Affairs Minister Sushma Swaraj here, and expressed confidence in the growth of bilateral relations during the year. Xi met the Indian minister in the Great Hall of the People, where the two sides agreed to focus on a positive bilateral agenda for the year. The Chinese leader observed that bilateral ties had achieved a turnaround and entered a “new phase” of partnership after his visit to India in September last year. “Since my visit to India, the relations between our two countries have entered a new phase. The positive side of China-India relations has been growing,” Xi said. He also said major steps were being taken to implement the agreements inked during his India visit. “I have full confidence on the future of China and India relations. I believe the good process will be achieved in the growth of bilateral relations.” Xi also recalled his visit to Ahmedabad where he was hosted by Prime Minister Narendra Modi on the Sabarmati riverfront. “I still cherish the fresh memories in my mind about the gracious hospitality extended to me by the government and people and particularly I cherish the fond memories of my trip to Prime Minister Modi’s hometown in Gujarat state,” he said. Xi mentioned in particular the special gesture shown by Modi in personally accompanying him to Celebrity event the Sabarmati ashram and also walking together with him along the riverfront. The external affairs minister’s Beijing visit comes days after the visit of US President Barack Obama to India that saw both sides announce a joint strategic vision for Asia-Pacific and the Indian Ocean. Swaraj’s visit is also aimed to lay the ground work for Modi’s visit to China, set to take place on May 26. Swaraj on Sunday launched the Second India-China Media Forum. Meanwhile, Russia and China expressed support for India joining the Shanghai Co-operation Organisation during a meeting of the trilateral Russia-India-China foreign ministers meeting here. Swaraj, along with Russian Foreign Minister Sergey Lavrov and their Chinese counterpart Wang Yi, held political consultations during the ministerial trilateral in the Chinese capital. The meeting acknowledged India’s importance in growth and welcomed Indian participation in Asia-Pacific Economic Co-operation (APEC), a forum for 21 Pacific Rim member economies that seeks to promote free trade and economic co-operation throughout the Asia-Pacific region. India is not a member of APEC. The three ministers also called for early conclusion of the Comprehensive Convention on International Terrorism by the UN. Modi in his maiden address to the UN General Assembly last September had called for all the nations to put aside their differences and mount a concerted international effort to combat Kerala CPM to get new state secretary IANS Thiruvananthapuram F Bollywood actresses Dia Mirza (left) and Neha Dhupia hug as they attend an event organised by the Rotary Club of Bombay in Mumbai on February on Sunday. terrorism and extremism. He had urged the nations to adopt the Comprehensive Convention on International Terrorism. The ministers also called to “bring to justice perpetrators, organisers, financiers and sponsors of terrorist acts,” external affairs ministry spokesman Syed Akbaruddin said. The three ministers also called for synergy of various initiatives to improve regional connectivity in Asia. The SCO, during its summit in Dushanbe in September last year had set the ball rolling to grant membership to India and also Pakistan and Iran to the Chinadominated security grouping. The SCO, which is increasingly seen as a counter to Nato, comprises China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. It has Afghanistan, India, Iran, Mongolia and Pakistan as observers and Belarus, Turkey and Sri Lanka as dialogue partners. India has been an observer at the SCO since 2005. z Modi said that India and China share age-old ties and it is necessary for both to boost people-topeople links through tourism in order to know each other better. In a video message on the occasion of launch of the “Visit India Year 2015” in China, the prime minister said that in 2016, India will celebrate ‘Visit China Year’. Inviting the Chinese to retrace the steps of ancient Chinese travellers Hiuen Tsang and and Fa Shien who came to India hundreds of years ago, he asked the Chinese to visit Buddhist religious sites like Bodhgaya, Sarnath, Nalanda and Kushinagar and turn the pages of history. or the first time since 1998, the Communist Party Of India (Marxist) will elect a new ‘captain’ in Kerala, one of the communists’ last bastions. This will happen when the party elects a secretary of the Kerala unit during its state conference from February 20 to 23 a powerful post in the party. The party recently re-wrote its constitution to say no office-bearer should get three terms in succession. As a result, Pinarayi Vijayan, who has been at the helm of party affairs in Kerala since 1998, will bow out this month. CPM sources say that Vijayan can take credit for putting an end to the factionalism that plagued the party for a long time when he was pitted against his arch rival and former chief minister V S Achuthanandan. Both have clashed openly on numerous occasions, often embarrassing the party. Achuthanandan’s clout has been weakened considerably. Vijayan has been able not only to dominate the 14 district units of the party in Kerala but also push out from the district committees leaders who owe their allegiance to Achuthanandan. With Vijayan now consolidating his position in the district committees by removing Achuthanandan supporters, all eyes are on who the next state secretary will be. The leading contenders appear to be legislators Kodiyeri Balakrishnan and M A Baby, who are also politburo members. The others are Elamaram Kareem, a legislator and a former minister, and E P Jayarajan. Over the years, apart from the Vijayan and Achuthanandan factions, the party also had a Kannur lobby. Kannur has been the CPM citadel. Vijayan and Balakrishnan are from Kannur. Kareem hails from neighbouring Kozhikode district. The fortunes of Baby, often seen as a moderate in the party, plunged after he was routed by his former state cabinet colleague N K Premachandran in the 2014 Lok Sabha polls. Gulf Times Tuesday, February 3, 2015 25 INDIA Kiran Bedi’s aide returns to BJP hours after quitting IANS New Delhi H ours after resigning from the Bharatiya Janata Party (BJP), the political aide of the party’s chief ministerial candidate Kiran Bedi joined back, terming his previous decision as “emotional.” Narendra Tandon, Bedi’s election assistant, said his resignation was an “emotional decision” and after being counselled by BJP president Amit Shah he decided to join back to ensure her win. In his resignation letter, addressed to Shah, Tandon had accused Bedi of having “dictatorial” ways and that he was “hurt” by the way she was made the chief ministerial candidate. Tandon, who claimed to have been associated with the party for 30 years, said: “...The way she was giving dictation to us, had become intolerable. Her associate would insult me on everything.” “I worked hard for 11 days, but cannot do it anymore,” his resignation letter said. But later, Tandon said he took back his resignation from the party and would work to make Bedi win. “I have taken my resignation back,” Tandon said. “Party president Amit Shah met me along with Dharmendra Pradhan ji (petroleum minister), they heard me out...I got emotional, and so I sent that resignation.” Asked about the reason for becoming “emotional”, Tandon said: “Things happen while you are working.” He added that Shah asked him to get back to election work. “I will make all efforts for Bediji to win. She is our leader,” he said. In his resignation letter, Tandon, who has been a member of the BJP’s state executive, also alleged that the BJP workers in Delhi were interested only in “women and money” and urged Shah to probe it. Meanwhile, the row over Aad Aadmi Party chief Arvind Kejriwal being shown of “upadravi gotra” - or destructive sub-caste - has led the party and the BJP locking horns, with both gearing up to lodge complaints against each other with the Election Commission. Kejriwal said he, while following social activist Anna Hazare’s ideals that one must have the capacity to tolerate insult, ignored many insulting acts of the BJP but they “crossed limits” and his party will now approach the poll panel. “What has happened to the BJP, first they targeted my children, but I tolerated it. Annaji has said we must have capacity to tolerate insult,” Kejriwal tweeted. “In social life, I never complained against personal insult. But this advertisement crosses the limit. They are calling the whole Agrawal caste destructive. They say I belong to a destructive sub-caste,” he said. However, the BJP denied having made any caste reference in an election advertisement that mocked Kejriwal and accused the AAP of giving it a religious and cast connotation. “It is extremely sad that certain political parties are trying to convert a political statement. An expression, used to represent that political party’s ideology, has been sought to be converted on religious ground,” BJP leader and Power Minister Piyush Goyal said. “This is a political commentary on their (AAP) ideology, that is anarchy. The term has been metaphorically used but it is being twisted and misused by the AAP,” he said. “It is a conspiracy of the AAP to give religious and casteist tone to the election process,” the BJP leader said, adding that the BJP will approach the Election Commission on the issue. The advertisement featured a caricature of Kejriwal, saying he will disrupt the Republic Day parade, and also ask for a VIP pass next year. It used the term “upadravi gotra” or destructive sub-caste alluding to Kejriwal, the former Delhi chief minister. In a related development, a New Delhi court deferred the hearing on a plea for action against Kejriwal for exhorting voters in his election speeches to take bribes if offered by the BJP and Congress but to vote for his party. BJP warns Sadhvi over remarks The Bharatiya Janata Party yesterday warned Sadhvi Prachi, one of its rightwing Hindu leaders in Uttar Pradesh, after she made a comment derisive of other communities and asked her to show restraint. Sadhvi Prachi said at on Sunday that she had done no wrong in asking Hindu women to have four children as she was not asking them to “give birth to 30-40 pups like others.” BJP Uttar Pradesh president Laxmikant Bajpayi said the comment was uncalled for and Sadhvi Prachi cannot behave like a Vishwa Hindu Parishad worker while being in the party. “The BJP does not support such statements. It would be better that Sadhvi Prachi realises that she cannot give a statement on the lines of VHP while being a BJP leader.” BJP’s chief ministerial candidate Kiran Bedi with the party’s candidate from New Delhi Nupur Sharma takes part in an election campaign yesterday. AAP accused of getting funds from bogus firms IANS New Delhi A breakaway group yesterday accused the Aam Aadmi Party (AAP) of receiving donations worth Rs20mn from bogus companies. The Bharatiya Janata Party questioned the funding but the AAP rejected the allegation as “malicious and false propaganda” unleashed by “mysterious fronts” created by the BJP. With assembly polls in Delhi less than a week away, the AAP also challenged the BJP-led central government to probe the source of funding which, it said, has already been investigated twice earlier. Gopal Goyal, a member of the AAP Volunteer Action Manch (AVAM) breakaway group, yesterday said there were four donations each of Rs5mn by four bogus companies to the AAP. He claimed that the funds were received on April 5 at midnight and the companies that Police free nine caught in Syria infiltration bid Agencies Bengaluru A uthorities have released nine people who had been deported from Turkey after allegedly trying to enter an area of Syria controlled by the Islamic State militant group, police said yesterday. Police in the southern city of Bangalore said the nine Indians were released late Sunday, after they admitted during questioning that they had planned to cross over to territory controlled by IS but denied being members of the organisation, which is banned in India. “We set them free as no incriminating material or any evidence was found against them,” Bangalore Police Commissioner M N Reddi told reporters yesterday. “No case was registered but they were warned against making such attempts in future,” he said. Turkish authorities detained the nine people - a family of seven and two engineers who were in the country on tourist visas - as they were trying to enter Syria on Friday. Police quoted the group as telling their interrogators that they had only wanted to help civilians who had been affected by the fighting in Syria and Iraq, large parts of which are also controlled by IS. Reddi said the members “were influenced by religious books and believed that they would go to heaven if they fight and die for Islam.” Of those deported were 46-year-old Mohamed Abdul Ahad, his wife and five children from Chennai, 24-yearold Javed Baba from Khammam district of Telangana and 24-year-old Ibrahim Nowfal from Hassan in Karnataka. Ahad, who has a master’s degree in computer science from Kennedy-Western University in California, worked in the US for over a decade, while Javeed and Nowfal are engineers. Thousands of foreign jihadists are believed to have joined IS which has seized swathes of territory in Iraq and Syria, ruling with a brutal version of Islamic law. The group has murdered a number of foreigners, including American, British and Japanese hostages. India banned the Islamic State group in December after police found a sympathiser who was running a Twitter account and was suspected of online recruitment. Although India has the third largest number of Muslims in the world, only a few are so far reported to have joined the militant group. made the donations were bogus. The AVAM was formed by some AAP members in 2014 over the demand for decentralisation of power in the party. Addressing a press conference here, Goyal said none of the donor companies had earned even a single rupee, but donated such a huge amount. “Where do they get their money from,” asked Goyal, saying he was ready to face punishment if his charges were found to be false. The AAP said in a statement that it was the only political party in India whose entire donations were in public domain and fully transparent. It said every rupee donated to the party was declared on its website for public scrutiny. “It has been wrongly alleged that the AAP has accepted funds from dubious sources on 5 April 2014,” the statement said. Describing the BJP as “frustrated and desperate,” the AAP said it was spreading lies. “The BJP and some mysteri- ous fronts created by it close to the Delhi assembly elections have unleashed a malicious and false propaganda on the funding of the AAP,” the statement said. “Since today morning, a defamatory smear campaign is being run against the AAP to confuse the people and divert attention from important issues concerning the people of Delhi,” the AAP statement added. It also said the party funding has already been probed twice by the previous Congress-led government and now the BJP-led government. “The party also challenges the government to probe its funding from any of the agencies at its command as many times as it wants,” the statement added. The BJP, meanwhile, said the AAP had no right to question the funding of other parties until it revealed its own. “Four fake companies, with same directors, and made within a period of 10-11 days, donated Rs50 lakh each to the AAP on the same day,” BJP leader and Power Irani at Jamia Millia Islamia Minister Piyush Goyal said. Citing the donation rules, Goyal said a company can donate only 7.5% of its average annual profit plus tax for three years as political donation. Another BJP leader, Nirmala Sitharaman, who is also the commerce and industry minister, said: “AAP ... till you give specific answers, stop telling other political parties what high ground you are seated on.” Sitharaman meanwhile posed the BJP’s fifth set of questions for AAP leader Arvind Kejriwal asking him to explain his relations with convicted Maoists as well as private power distribution companies. The BJP leader asked the former chief minister to answer why convicted Maoists are important members of his party committees, and are given tickets. “Binayak Sen, convicted by court for Naxal (Moaist) activities, is an important member of AAP internal committees. Kejriwal should explain this relationship,” she said. 91 escape from detention centre AFP Lucknow S Minister for Human Resource Development Smriti Irani is seen with Gujarati businessman Zafar Sareshwala during the symposium ‘Educating and Mainstreaming of Indian Muslims’ at Jamia Millia Islamia university in New Delhi yesterday. Similarly, she accused AAP of having close connections with private electricity companies. “First you give them subsidies by diverting money from SC/ST welfare and then to further deceive Delhi voters, you announce an infructuous audit against them knowing full well the statute limitation that such audit is time barred. “Will you explain this special partnership with discoms?” asked Sitharaman. Thirdly, the BJP asked Kejriwal to explain why he and his party members were attacking and threatening the media. Sitharaman, in her fourth question asked why Kejriwal could not contest elections without allying with Maoists and other forces inimical to India’s interests. In its final question, the BJP asked why Kejriwal was misleading the traders of Delhi by claiming that no VAT raids were conducted against them during his 49-day rule in Delhi whereas over 150 raids took place in his tenure. cores of inmates staged a mass breakout from a young offenders detention centre yesterday by tying bedsheets together and then scaling down the walls of the three-storey building, police said. A total of 91 out of 135 inmates, including several convicted murderers, managed to flee the facility in Meerut overnight, although 45 have since been recaptured, the city’s superintendent of police Om Prakash said. “They removed an iron grille from a window at the back of the building while police were guarding the front,” Prakash said in Meerut in the northern state of Uttar Pradesh. “This was done so professionally that no one got a whiff,” Prakash added. Those still on the run include inmates convicted of crimes such as murder, rape, theft and banditry, Prakash added. All are aged under 18. Police say the break-out was staged some time between 1am and 3am and the alarm was only raised when officers patrolling near the centre spotted some of the fugitives trying to flag down public transport. Prakash said that the local authorities were confident that they would recapture the others who had escaped. “Even earlier inmates from this facility have made several attempts to escape. Once in the past around 40 of them even managed to escape,” Prakash said. Inmates from the same centre beat a policeman to death in December after he objected to their lewd behaviour with a woman during a court hearing. There are more than 31,000 inmates in India’s young offenders’ institutes, according to the latest official statistics, and there is an ongoing debate about the treatment of juveniles charged with serious crimes like rape, murder and robbery. 26 Gulf Times Tuesday, February 3, 2015 LATIN AMERICA DIALOGUE DISASTER CRIME SETBACK Colombian guerrillas, government resume talks 6.3-magnitude quake hits western Argentina: USGS Slain students’ parents seek justice from UN Congress elects Rousseff critic as speaker An earthquake with a magnitude of 6.3 rocked a sparsely populated area in western Argentina yesterday, but there were no immediate reports of damage or casualties. The US Geological Survey said the quake struck about 85kms northwest of La Punta at 1049 GMT. It put the quake’s intensity at 6.3 on the Moment Magnitude scale. Argentina’s National Institute of Seismic Prevention gave a reading of 6.1 on the Richter scale. It was the second strongest quake in Latin America this year, surpassed only by a 6.6-magnitude tremor on January 7 in Panama, according to the USGS. The parents of Mexican students believed murdered by a drugs gang appealed to the United Nations yesterday for help in seeking justice, saying they had no faith in the government’s ability to investigate the crime. President Enrique Pena Nieto’s government said last week that the 43 trainee teachers who disappeared four months ago were killed on the orders of a drug cartel who mistook them for members of a rival gang. The killings, which shocked a nation already suffering from endemic crime-related bloodshed, have led to mass protests against the government and fuelled the widely held belief that organised crime and certain politicians have close links. Brazil’s Congress elected a conservative as speaker of the Chamber of Deputies in a setback for the ruling Workers’ Party that split President Dilma Rousseff’s coalition and will complicate her legislative agenda. Eduardo Cunha belongs to Brazil’s largest party, the PMDB, Rousseff’s main ally in the governing coalition, but he defeated a Workers’ Party candidate by advocating for a legislature that was less subservient to the government. Cunha backs a bill that would make it harder for the federal government to block spending proposed by lawmakers, which would counter Rousseff’s efforts to eliminate Brazil’s fiscal deficit with austerity measures. Leftist Farc guerrillas resumed peace talks with the Colombian government in Cuba yesterday, after a year-end break. The Bogota government and the Revolutionary Armed Forces of Colombia have been negotiating for more than two years in Havana to bring an end to the 50-year insurgency, but key issues remain unresolved, including disarmament and how any agreement should be ratified. “We resumed the talks, and are hoping to continue to seek an agreement in the terms known by the people of Colombia and the whole world,” said a Farc negotiator Joaquin Gomez speaks to the media statement from the guerrillas read to the press while flanked by fellow Farc members in Havana. by commander Joaquin Gomez. Rio slum families win high payout ‘Marry me’ carnival US firms in Venezuela facing huge losses: study London Evening Standard Rio de Janeiro A fter years of opposition and protest, three-quarters of the 583 families in a Rio de Janeiro favela (slum) community have agreed to make way for 2016 Olympic building work. In what has been described as an unprecedented move, authorities have now offered remaining residents at Vila Autodromo market-rate compensation to give up their homes. But many in the 40-year-old community feel they have lost out. Earlier this year, resident Altair Antunes Guimaraes told a public hearing that the community was “living a war of poverty against money, against power”. A construction worker who has been displaced twice before, Guimaraes, 59, was speaking out about the removals. According to the city’s Official Gazette, families have received offers of sums of up to $2.3mn for the expropriation of their houses on the prime real estate land. Previously, favela residents would be offered as little as a tenth, with compensation packages amounting to around $200,000. “If a resident gets R$150,000, R$200,000 to go and buy a house, they won’t be able to,” said Maria da Penha Marcena, who lives in Vila Autodromo, at the same hearing in front of the Defence Commission of Human Rights and Citizenship. “There are no longer homes for R$200,000 in a legalised place. So they will get R$200,000 and buy a home in another favela? Soon, we’ll hit the same problem.” The high settlements now being offered are testament to the community’s hard-fought opposition. While the majority of families agreed to compensation or a new apartment in a £26mn social housing condominium half a mile away, a core of residents refused to be swayed or “short-changed”. Since the City Hall announced the removal of Vila Autodromo in 2009, the defiant community became a byword for the popular struggle of those in the path of last year’s World Cup and the 2016 Olympics. AFP Washington A Revellers take part in the annual carnival block party known as ‘Casas comigo’ or ‘Marry me’ at the Vila Madalena neighbourhood in Sao Paulo, Brazil. The sign reads, ‘Looking for a Husband’. t least 40 major US companies have substantial exposure to Venezuela’s deepening economic crisis, and could collectively be forced to take billions of dollars of write downs, a Reuters analysis shows. The companies, all members of the S&P 500, and including some of the biggest names in Corporate America such as autos giant General Motors and drug maker Merck & Co, together carry at least $11bn of monetary assets in the Venezuelan currency, the bolivar, on their books. The official rate is at 6.3 bolivars to the dollar and there are two other rates in the government system - known as SICAD 1 and SICAD 2 - at about 12 and 50. The black market rate, though, was at about 190 bolivars to the dollar on Sunday, according to the website dolartoday.com. The problem is that the dollar value of the assets as disclosed in many of the companies’ accounts is based on either the rates at 6.3 or 12 and only a limited number of transactions are allowed at those rates. The assets would be worth a lot fewer dollars at the 50 rate in the government system and the dollar value would almost be wiped out at the black market rate. The currency system is also about to be shaken up following an announcement by Venezuela President Nicolas Maduro on January 21, leading to fears of a further devaluation. American companies will also have additional exposure to the bolivar that isn’t disclosed because they don’t see the size of V enezuela has jailed the owners of an unnamed chain of shops accused of engineering queues to whip up anger with the socialist government, President Nicolas Maduro said. Chronic shortages of basic goods, including flour, chicken and diapers, have triggered massive lines that sometimes stretch around blocks and have become a nightmare to navigate for Venezuelans. Most economists blame the scarcity on currency controls that restrict dollars for imports, as well as falling domestic production. Maduro, however, accuses a rapacious business elite of waging an “economic war” to bring down his administration. “We have detected that a famous chain of stores was conspiring, irritating the people,” Maduro told a crowd of redclad supporters and soldiers. “We came, we normalised sales, we summoned the owners, we arrested them and they’re prisoners for having provoked the people,” he said to cheers, adding that the state would take over the food stores. The stores purposefully reduced the number of cashiers to create lines, Maduro said, likening the strategy to a “guerrilla tactic.” “We came, we normalised sales, we summoned the owners, we arrested them and they’re prisoners for having provoked the people” Authorities are also pressing charges against Venezuelan pharmacy chain Farmatodo for not opening enough check-out counters. Its executives have been summoned for questioning. The government has jailed businessmen in the past for raising prices, and has launched several campaigns designed to combat contraband of pricecontrolled goods flowing to neighbouring Colombia. “Those who use their stores to hurt the people will pay with jail time,” said Maduro, donning a tracksuit with his name sewn on and a camouflage hat. Critics say cracking down on businesses risks aggravating shortages and further deters investment. They have also lampooned Maduro for not pushing through major structural changes to combat the country’s recession, over 60% inflation, and shaky finances. Maduro, who won an election to replace his mentor, the late Hugo Chavez, in 2013, added he secretly toured the capital Caracas for four hours on Saturday with his wife and close adviser Cilia Floresto to survey the situation at stores. leaving companies with growing quantities of bolivars trapped by currency controls. “It’s a huge deal and companies will get hit big,” said Ali Dibadji, an analyst at Sanford C. Bernstein & Co Inc. “Take a look at what Kimberly-Clark did last week and what Clorox did a few months ago by getting out of Venezuela.” Cleaning and household products maker Clorox last year decided to exit Venezuela altogether. Its CEO Don Knauss said at the time: “We saw no hope that we could create a sustaining business in that country.” The currency issues are hurting many US companies much more than their sales might suggest. Many of the companies in the analysis have been getting between 1%-3% of their global revenue from Venezuela. Ford Motor Co and oil services company Schlumberger NV took big-ticket hits to their quarterly profits because of their Venezuelan operations. Ford took a fourth-quarter charge of $800mn and Schlumberger $472mn. A Ford spokeswoman said that it still values its Venezuela assets at about 12 bolivars per US dollar. But for Ford, the currency system and other conditions are so tough in the South American country that it has made an accounting change that will allow it to ring fence its Venezuela business so that it doesn’t have a direct impact on the company’s operating results. Schlumberger, which previously used the 6.3 rate, said it is now using the SICAD 2 rate of 50 as it “best represents the economics of Schlumberger’s business activity in Venezuela.” Uribe backs spy chief in wiretap scandal Store owners accused of engineering queues jailed Reuters Caracas that exposure as material to their results. The Reuters analysis also doesn’t look at the thousands of publicly traded and private American companies that aren’t in the S&P 500 and will in some cases have bolivar assets. Some leading American companies have already decided that the stronger exchange rates - the official rate at 6.3 and the SICAD 1 exchange market at 12 - are not reflective of the currency conditions they face in the South American country. Diaper and tissue maker Kimberly-Clark Corporation recently announced a charge of $462mn for its Venezuelan business, leading to a fourth-quarter loss for the company, after it concluded that the appropriate exchange rate was the SICAD 2 exchange rate at 50 rather than the 6.3 it had previously used. Using the stronger exchange rates is unrealistic because of how hard it is to repatriate profits earned in Venezuela back to the US at any rate, let alone those rates, securities analysts say. Citigroup says it has not been able to buy US dollars from the Venezuelan government since 2008. Companies can seek dollars at the official rate if they are using those dollars to import raw materials for production of priority goods such as food and medicine, and some can buy dollars at the SICAD 1 rate at around 12 bolivars to the dollar through auctions that are typically held several times per month but are only targeted at specific sectors. As tumbling oil prices have left Venezuela with fewer dollars, its currency board has steadily reduced approval for repatriation of dividends at the official rate - AFP Bogota C People queue outside a supermarket to buy soap powder in Caracas yesterday. The price of the family shopping basket in Venezuela increased 93.2% in 2014, almost reaching the equivalent to $5,000 at the official rate, the teachers’ union Centre for Documentation and Social Analysis reported. olombia’s former president Alvaro Uribe yesterday denied that his onetime intelligence chief had done anything illegal after she was flown home to face charges of spying on his political opponents. Maria del Pilar Hurtado, the former intelligence chief, was arrested on Saturday after surrendering in Panama, where she had lived for more than four years under political asylum. “Neither she, nor the presidency, nor did I order illegal actions,” Uribe said on his Twitter account. Defending Hurtado as an “upright official” with a good reputation, Uribe insisted that wiretaps she had ordered were legitimate “national security operations.” Uribe specifically claimed as legal a wiretap on former senator and Bogota mayor Gustavo Petro that touched off the scandal. Hurtado, 51, is accused of or- dering wiretaps on Petro, other leftist politicians, judges and journalists when she led the now-defunct administrative department of security (DAS) from 2007 to 2008. “Neither she, nor the presidency, nor did I order illegal actions” The DAS, as it was known, reported directly to the presidency, which Uribe held from 2002 to 2010. Uribe’s successor President Juan Manuel Santos disbanded the agency after a series of scandals. Attorney General Eduardo Montealegre said over the weekend that “there is convincing evidence that she ordered illegal surveillance of Supreme Court justices, against opposition leaders” and others. Gulf Times Tuesday, February 3, 2015 27 PAKISTAN/AFGHANISTAN Drop in fuel prices, a Godsend opportunity for Pakistan Internews Islamabad T here is not a soul who could have foreseen the price of oil rolling down from $115 a barrel eight months ago to just around $45 last week. And fewer still could have predicted State Bank of Pakistan’s basic interest rate to dip to a 10year low of 8.5%. Most economists, corporate executives and market analysts watching the phenomenon with disbelief term it a ‘Godsend opportunity’ and a ‘windfall gain,’ which could infuse new life into the country’s moribund economy. But many of them also added caveats, and are not sure that the opportunity would not be squandered. “For the corporate sector, these windfalls would translate into a much needed decline in the cost of doing business,” Kamran Y Mirza, CEO of the Pakistan Business Council, said on Thursday. He believed that the government had received the ‘fiscal space’ to rationalise every aspect of the economy. “It is one more chance for the PML-N government to fulfil the promises made in its election manifesto about reforms and restructuring of the economy.” He affirmed that the oil price plunge and the interest rate cut was a ‘win-win’ situation for all. The ease in inflation which the SBP now projects at 4.5%, down from the 5.5% for the current fiscal would increase consumers’ purchasing power, eventually leading to higher industrial output and strong bottom lines for corporates. With lower interest rates, private sector borrowing would pick up pace, providing industries with cheaper capital. Nasim Beg, vice-chairman of Arif Habib Savings, endorsed that view. He pointed out that the cost of short-term borrowing by corporates for their working capital requirement would decrease with the decline in interest rates. And companies with stalled plans could go for expanding and modernising their plants. This would inevitably provide employment opportunities to the country’s bulging youth population. Beg, however, expressed some anxiety over the possibility of a slowdown in remittances if jobs in the Gulf countries are lost due to the slump in oil prices. Meanwhile, along with a decrease in the cost of fuel, the drop in interest rates would help leveraged companies trim down the biggest expenditure item on their balance sheets, he said. He did not believe that the country’s stock market had touched its peak, but also cautioned that the KSE-100 index, Malala among Britain’s most influential people Internews Islamabad N obel Peace Prize winner Malala Yousafzai of Pakistan has been named among 500 most influential people in Britain 2015. The Debrett’s 500 covers 24 categories across society, including politics, advertising, architecture, food, sport, education and journalism. Established personalities such as Tony Blair and Richard Branson are joined by new faces such as Oscar hopeful Eddie Redmayne. Seventeen-year-old Malala was named in the list of ‘Philanthropists and Activists’ among 20 other personalities which include Emma Watson Malala Yousafzai and Prince Henry of Wales, as reported by The Telegraph. Malala, the youngest person ever to win the Nobel Peace School massacre survivors leave on ‘healing trip’ AFP Islamabad A group of students and teachers who survived a Taliban massacre at a Pakistani school left yesterday for a trip to China aimed at healing the mental scars of their ordeal. Heavily-armed militants stormed the Army Public School in the northwestern city of Peshawar in December, killing 150 people, most of them children, in Pakistan’s bloodiest-ever terror attack. The carnage horrified the world and left many survivors badly traumatised. Now 10 students and two teachers who escaped the bloodshed have been sent on a 10-day trip to help them recover. “The basic aim of the visit is to divert the attention of the survivors,” from the nightmare, a security official said. An official at the Army Public School confirmed the visit and said that “more survivors will be sent in coming days to other countries”. Both the officials spoke on condition of anonymity. The officials said the decision was taken after psychiatrists suggested that survivors need long-term therapy and mental health counselling. The security official in Peshawar said the parents of children killed in the attack would be sent to on pilgrimage Saudi Arabia — home to some of Islam’s most holy sites — in the coming days. Prize, is also the youngest in the Debrett’s rankings. The annual Debrett’s 500, which began in 1769, extend recognition to the most influential, inspiring and achieving individuals across Britain. Joanne Milner, chief executive at Debrett’s, said: “We are delighted to announce this year’s Debrett’s 500. It’s a fascinating mix of people, and not entirely who you might expect.” Malala was 15 when a Taliban gunman shot her in the head as she travelled on a school bus in response to her campaign for girls’ education. Last year she received the Nobel Peace Prize alongside India’s Kailash Satyarthi for risking their lives to fight for children’s rights. Saudi prince to visit Baluchistan for Houbara hunt Pakistani authorities are finalising arrangements for a Saudi prince to visit its southwestern desert region to hunt the Houbara bustard, a bird supposedly protected by law, officials said yesterday. An advance party has already reached the Yak Much desert in the province of Baluchistan along with falcons which will be used to catch the bustard, officials said. Saudi Prince Fahd bin Sultan bin Abdulaziz is expected to join the group in coming days. He led a hunting party to Baluchistan last year that officials said killed more than 2,000 bustards. Saifullah Zehri, district forest officer for wildlife in Chagai district of which Yak Much is a part, said the advance party arrived on Sunday in a C-130 transport plane. “They were fully equipped and had all the material which is required for bird hunting,” Zehri said. being heavily tilted towards energy stocks, was not the best measurement for the market’s performance, and suggested that investors go for stocks of fundamentally strong companies. “Over the long run, stocks and real estate have historically given out the best returns,” he noted. “For the corporate sector, these windfalls would translate into a much needed decline in the cost of doing business” Raza Jafri, head of research at AKD Securities, admitted that the government being the biggest borrower would have to pay lower interest rates on Pakistan Investment Bonds and Treasury bills. With debt servicing being one of two (the other being defence) major items on the expenditure side, the decrease in interest expenditure would have a salutary effect on the fiscal deficit, which would then be reflected in other major economic indicators. Yet, Raza believes that lower fuel costs and interest rates are not enough, and that more is required for industrialisation to pick up pace. “The perennial problems of circular debt and power outages will have to be solved before we expect corporates to expand, raise the level of profitability and distribute higher dividends.” Low interest rates could also lure consumers to increase their spending, further spoiling the savings-to-spending ratio. For some, the decrease in fuel costs together with low instalments on leasing, may provide an ideal opportunity to spend on luxury items like automobiles. Other analysts believed that as the cost of furnace oil has gone down, industries dependent on the costly fuel, such as cement and independent power pro- ducers, could see higher capacity utilisation, translating into growth in their top and bottom lines. Some analysts believe that the heavy cut in the price of petrol would reduce transportation costs. But Muzammil Aslam, MD of Emerging Economics Research, argued that the transportation cost could decrease more for people with their own conveyance, which is no more than 10% of the population. But he admitted that with the expected increase in consumer financing, spending on automobiles, electrical appliances and other non-essential goods would increase, which could boost the profitability of these industries. He added that $15bn oil import bill would be sizably reduced, leading to a positive impact on the balance of payment position. It will also lead to higher reserves, lower inflation and still lower interest rates. However, there is a darker side to the tale. “The country had to pay higher subsidies when oil prices were sky high, and these subsidies will recede. Yet its revenues would take a big hit in the form of lower import duty,” he said. He elaborated that at $115 a barrel, the duty worked out at $28; meanwhile, with oil at $50 a barrel, the duty has dropped to $15 a barrel. This is why the government has booked a loss of around Rs100bn in six months from the decrease in revenue from the import duty on oil. Aslam also recommended that the government strike a balance for macroeconomic stability so that consumerism does not mitigate the advantages of these developments, as had happened during the era of former prime minister Shaukat Aziz, when interest rates had also slipped to single digits. Pakistan test-fires N-capable missile Ra’ad (Thunder) is a “lowflying, terrain-hugging missile” which can deliver nuclear or conventional warheads to targets up to 350km away with “pinpoint accuracy” Agencies Islamabad P akistan yesterday conducted a test of Air Launched Cruise Missile (ALCM) that is capable of carrying nuclear and conventional warheads to a range of 350km, a military statement said. The military described the domestically-developed Ra’ad (Thunder) as a “low-flying, terrain-hugging missile” which can deliver nuclear or conventional warheads to targets up to 350km away with “pinpoint accuracy”. The Inter Services Public Reactions (ISPR), the mouth piece of Pakistan army, said the successful launch of the Ra’ad missile enables Pakistan to achieve Strategic Standoff Capability on land and at sea. “Cruise Technology is extremely complex and has been developed by only a few countries in the world. Pakistan’s Strategic pursuits are aimed at achieving Strategic Stability in the region,” the statement said. The cruise missile can be used in an anti-shipping role via aircraft against the ground/static targets. This handout image released yesterday by Pakistan’s Inter-Services Public Relations (ISPR) office shows a Pakistani nuclear-capable Ra’ad cruise missile after being launched from a jet fighter during a test firing at an undisclosed location in Pakistan. Director General Strategic Plans Division, Lieutenant General Zubair Mahmood Hayat, congratulated the Pakistani scientists and engineers on achieving the milestone of historic significance, and termed it a major step towards strengthening Pakistan’s Full spectrum Credible Minimum Deterrence capability. Pakistani President Mamnoon Hussain and Prime Minister Nawaz Sharif also commended the successful launch of the missile and congratulated the scientists and engineers on their outstanding achievement. The test comes just over a week after India reached a new civilian nuclear accord with the United States. The agreement reached during President Barack Obama’s visit to New Delhi broke a deadlock that stalled a civilian atomic power agreement for years. But it drew condemnation from Pakistan, which said the deal could destabilise South Asian security. The US and India in 2008 signed a landmark deal giving India access to civilian nuclear technology. But it had been held up since then by US concerns over India’s strict laws on liability in the event of a nuclear accident. India and Pakistan are both nuclear-armed in addition to operating civilian atomic plants. They have fought three wars since independence from Britain in 1947. Taliban kill seven Afghan policemen in two attacks AFP Kabul T aliban killed seven policemen in separate attacks on police checkpoints in Afghanistan, officials said. In the western province of Herat, insurgents attacked a checkpoint in Chesht-e-Sharif district, killing three officers and injuring three others on Sunday night, said the province’s police spokesman Abdul Raouf Ahmadi. Nobody claimed responsibil- ity immediately. Taliban insurgents have stepped up attacks since Afghan troops took over full responsibility for the country’s security on January 1. Also Sunday, at least four policemen were killed in the southern province of Kandahar when Taliban attacked a police checkpoint, said Zia-ul-Rahman Durani, police spokesman for that province. Violence in Afghanistan surged in 2014 as the Nato-led alliance ended its combat campaign. Pakistan, India to share pavilion at Venice art fest Indian philanthropic organisation funds show bringing together two stars of the countries’ contemporary art scenes Guardian News & Media New Delhi W here the politicians and diplomats have failed, the artists hope to succeed. Pakistan and India are to be united at the Venice Biennale this year when a top contemporary artist from each nation will share a pavilion, in an unprecedented initiative aimed at bringing the two neighbours closer together. The show, entitled My East is Your West, has been funded by a Indian private philanthropic or- ganisation. The respective governments, which have been exchanging intermittent artillery fire and verbal barbs for months, are not involved. “We just thought, let’s stop complaining about what others should be doing, let’s just do our best and say that from a common past and a divided present, we would like a peaceful future,” said Feroze Gujral, cofounder of the Gujral Foundation. The two participating artists are both stars of the burgeoning contemporary art scenes in their respective countries. Mumbaibased Shilpa Gupta has exhibited at the Tate Modern, the Serpentine Gallery and the Guggenheim. Rashid Rana, who lives and works in Lahore, is considered one of the most important current Pakistani artists. “This is something coming from the art world. We have just had [Barack] Obama in Delhi watching a huge parade of weapons and talking about nuclear power. So it’s wonderful to have this unofficial dream of peace,” Gupta said. India and Pakistan were divided in 1947 when Britain was forced to give up its south Asian empire. The two nuclear powers have fought three major wars since and have skirmished, militarily and diplomatically, continually. A nascent peace process has been frozen since 2008 after Pakistan-based militants attacked India’s commercial capital, Mumbai. At least 14mn people were displaced in the partition of the two countries 68 years ago as Muslims fled to Pakistan and Hindus and Sikhs headed to India. Up to a million were killed in mob violence. “Partition hasn’t really been addressed at all in either nation,” said Gupta, whose previous work has investigated ideas of nationhood and frontiers. Gujral said this shared his- “We just thought, let’s stop complaining about what others should be doing, let’s just do our best and say that from a common past and a divided present, we would like a peaceful future” tory was one reason for her decision to organise the joint show in Venice. Her father-in-law, Satish Gujral, one of the most important Indian artists of recent decades, was born in Jhelum, in modern Pakistan, and fled to India in 1947, narrowly escaping death. “His losses were irreplaceable … so this is a very special project. There is never any healing but there can be a celebration, a cultural conversation, that can cross borders,” she said. India exhibited at the Venice Biennale for the first time four years ago. Pakistan last did in 1956. That artists and patrons should pick up where officials have failed is less surprising than it may seem to outsiders. Despite poverty, political instability and sometimes violence, artists from south Asia are beginning to make a global name for themselves, attracting interest from international buyers, curators and museum directors. This weekend thousands of visitors attended the India Art Fair, now in its seventh year. The event has attracted artists and dealers from across the world, all keen to get a slice of the still booming Indian market. British and European artists have proved popular among India’s new wealthy art collectors , though bureaucratic restrictions mean some gallery owners prefer to bring works to show rather than sell. This year’s event, with 85 galleries, is more focused on local artists and those in smaller towns beyond India’s sprawling cities. One Pakistani gallery, from the southern port city of Karachi, has surmounted a series of logistical obstacles to show at the event. “It is special being here, there’s a lot of history obviously, though getting visas is tough,” said Camilla Chaudhary, of ArtChowk . Rashid Rana, who will share the Venice Biennale pavilion with Gupta, said the exhibition would be more about the south Asian region as a whole rather than just the complex relationship between India and Pakistan. “I am interested in messing with time and location … As artists we can defy these borders,” Rana said. The venture has been greeted with some scepticism. Kanwal Sibal, a former foreign secretary of India, said cultural initiatives could help “form a pool of public opinion “that could help improve relations between states, but little more”. He said: “It has some value, but in terms of true impact on policy it is less than marginal.” 28 Gulf Times Tuesday, February 3, 2015 PHILIPPINES Govt says rebels must prove sincerity after bloodbath President Benigno Aquino’s spokesman Edwin Lacierda has hinted that this might even involve calling on the Moro Islamic Liberation Front (MILF) to turn over some members to face criminal charges AFP Cotabato A AFP Manila R ebels who signed a ceasefire with the Philippine government must co-operate with an investigation into the killing of 44 policemen by some of their fighters, a presidential official said yesterday. President Benigno Aquino’s spokesman Edwin Lacierda hinted that this might even involve calling on the Moro Islamic Liberation Front (MILF) to turn over some members to face criminal charges. “We have said that the MILF must demonstrate its sincerity that they are full partners in the peace process. We certainly will encourage them to help us find things that we need to search for the truth,” Lacierda told reporters. He said Justice Secretary Leila de Lima has been preparing charges against those responsible for the January 25 killings. “We would hope that part of their good faith is to show us... the truth. We want to seek justice. That kind of justice that we want is a justice that seeks File photo shows Moro Islamic Liberation Front (MILF) rebels shouting slogans while gathered inside their camp at Camp Darapanan in the town of Sultan Kudarat in the southern island of Mindanao. accountability,” he said Lacierda stopped short of stating the MILF must give up its fighters but said it should return the firearms it captured from the slain policemen. A police board of inquiry is already investigating the killing of the police commandos, who were on a mission in the southern island of Mindanao to capture or kill Malaysian bombmaker Zulkifli bin Hir, alias Marwan. Marwan, a leading member of the Jemaah Islamiyah group which staged the 2002 Bali bombings in Indonesia, is believed by authorities to have been killed in the raid. But the commandos were later ambushed by armed groups -including fighters of the MILF which signed a peace agreement with the government last March. MILF officials said they were acting in self-defence and the raid should have been co-ordinated with them under the terms of the ceasefire. However the killings have angered the nation and threatened efforts to pass a law that would create a Muslim autonomous area as part of the peace process. Legislators are seeking their own investigation of the incident before they will act on the bill, which Aquino wants passed before his term ends in Political prisoners want visitation rights restored Agencies Manila F ive of the 37 political prisoners who staged a hunger strike during Pope Francis’ recent visit to the country, have gone to court to stop what they said was the ongoing violation of their human rights by the jail warden, a newspaper reported. In separate manifestations with urgent motions filed in the Taguig Regional Trial Court where they are facing criminal charges, Tirso Alcantara and the group of Alan Jazmines, Rolando Laylo, Edward Lanzanas and Alex Arias asked Branches 271 and 266, respectively, to “require warden Michelle Ng Bonto to refrain” from violating their rights, particularly their “basic right to be visited Carnage scaring away investors: business group by (their) family or relatives, counsel and chosen doctor,” Philippine Daily Inquirer reported. The filing of the cases on Jan 28 through human rights group Karapatan was prompted by Bonto’s continued refusal to let them receive visitors at the Special Intensive Care Area (Sica) 1 in Camp Bagong Diwa, Taguig City, where they are detained despite Republic Act No. 7438, they said. According to RA No 7438, “any person arrested or detained or under custodial investigation shall be allowed visits by or conferences with any member of his immediate family or any medical doctor or priest,” the petitioners added. They said that Bonto violated their rights on Jan 1315, when she refused entry to several individuals, includ- ing Dr Julie Caguiat; Bernard Zamora, a Karapatan paralegal staffer; Julian Oliva Jr of the National Union of People’s Lawyers who is their counsel; Bagong Alyansang Makabayan Chair Carol Araullo and former Gabriela representative Liza Maza. These visitors, they added, went to Sica 1 to “look into the reported deteriorating physical condition” of several of the 37 inmates who went on a hunger strike starting on January 10. The mass action was aimed at drawing the Pope’s attention to their plight. Karapatan secretary general Cristina Palabay said the hunger strike ended on Jan 19, the day Pope Francis left the country. “Hence, (we) respectfully (ask) the honourable court to immediately order (Bonto) to explain the reported violations of (our) rights and those of (our) fellow political prisoners and to desist from committing further violations of (our) rights,” they said. “She must be reminded of the rights of detained persons and to accord herein (to us) and (our) fellow political prisoners full respect… at all times,” they added. All the political prisoners, including the five petitioners, told the court that they were “consultants” in the peace process between the government and the National Democratic Front of the Philippines. They said that the cases filed against them in different courts by the government, which has accused them of being members of the Communist Party of the Philippines, were based on “false and trumped-up charges.” 2016. Lacierda stressed that the peace process could not be abandoned, saying that nearly 120,000 people had died since the separatist insurgency began in 1972. “This is a period of grief. It’s a period of mourning. It’s a period of rending our garments out of anger, out of frustration. But... there is no alternative to peace. It’s too costly for us,” he said. bloodbath in the southern Philippines has placed at risk billions of pesos in potential investment, a business leader in the region said yesterday. At least three foreign firms looking to partner with local businessmen have put investments on hold after a deadly clash between Philippine forces and rebels, said Mohamed Omar Pasigan, president of the Bangsamoro Business Club. The botched anti-terror operation on January 25 left 44 police commandos dead in the southern island of Mindanao, along with at least 11 rebels. “Security is everything for businessmen out to make a profit... They know when to take a risk and when to pull out,” Pasigan said. “They are willing to come here and invest, but then this fighting happened.” The value of investments on hold due to the fighting, in the real estate and agriculture sectors, is estimated at “billions” of pesos, he said. Malaysian businessmen due to arrive yesterday to inspect sites in Cotabato city have cancelled their trip, Pasigan said. The group was looking to build small hotels and department stores. Jordanian businessmen looking to invest in up to 123 acres of banana farms left abruptly on Sunday without finalising a deal, he added, while Singaporean and Malaysian partners seeking to replicate their mini shopping mall business in Johor Baru said they were postponing their investment. Pasigan declined to name the businessmen since their plans were not finalised. He said his group was helping foreigners find local partners. Philippine laws prohibit foreign nationals from owning a majority of local businesses. The firefight between police commandos and rebels on January 25 broke a long-standing ceasefire and endangered a peace treaty signed in March 2013. Economic planning secretary Arsenio Balisacan acknowledged that the government must quickly bring calm to the region. “The perception of risk is bad for business... At this point, (the fighting) doesn’t have any significant impact but again it’s closure we need,” he told reporters recently. Balisacan said the south, wracked by decades of conflict that has left tens of thousands dead, had the potential to be a growth driver, given its fertile land for agriculture and rich mineral deposits. “It’s a missed opportunity if we don’t resolve this problem at the soonest time possible,” he said. Street dance contest Children join a street dancing competition during the opening parade of the 20th Panagbenga Festival. The month-long festivities will be capped by a spectacular float parade on March 1. Philippines opens mammoth casino-resort, seeking high-rollers AFP Manila A new mega-casino opened in the Philippines yesterday as the fast-growing southeast Asian nation ups its bid to become a world gaming destination. Manila aims to rival Macau and Las Vegas in terms of gaming revenues, and the ‘City of Dreams’ is the latest in a string of casinos that have opened in recent years. The new casino is an imposing structure on Manila Bay with six gleaming golden towers surrounding a giant egg-shaped dome, and industry and government leaders hope that it will attract cashed-up tourists from other parts of Asia. The casino is a joint venture between the country’s richest man Henry Sy, Australian billionaire James Packer and Lawrence Ho, son of Macau casino mogul Stanley Ho. “The goal is to find the best (sites) in Asia... The Philippines is one of the fastest growing economies anywhere in the world. We’ve seen the market really pick up,” Ho told reporters. Ho also acknowledged the huge cost of building the resort. Visitors walk near the golden dome called the “Fortune Egg” of the newly-opened City of Dreams mega-casino in Manila yesterday. Right: Lawrence Ho (right), son of Macau gaming tycoon Stanley Ho, and co-chairman of Melco Crown, with his wife Sharen, and his co-chairman, Australian billionaire James Packer arrive at the grand opening of the City of Dreams mega-casino. The Philippine government requires a minimum $1bn investment for new casinos built in the area. Packer said jokingly that the resort was inspired by Hollywood movies Casino and Oceans Eleven, and Robert de Niro, Martin Scorsese and Leonardo DiCaprio have appeared on giant billboards and TV commercials to promote the casino. The 15-acre complex is the second of four mega resorts to open on reclaimed portions of the bay, just a few hundred metres from the city’s slum communities. The City of Dreams’ golden dome, called the “Fortune Egg”, houses two exclusive nightclubs, including Pangaea, where Picasso copies hang beside pictures of safari animals on walls covered in fake snakeskin. Yesterday’s glittering opening for City of Dreams is to be capped off with a concert by American music stars Ne-Yo and Kelly Rowland. The Philippines economy grew at more than six% in 2014 for the third straight year, prompting economic planning secretary Arsenio Balisacan to comment that the country has shaken off its reputation as the “sick man” of Asia. Gulf Times Tuesday, February 3, 2015 29 SRI LANKA/BANGLADESH/NEPAL TV station boss held in Bangladesh crackdown AFP Dhaka AFP Dhaka T he owner of a leading Bangladeshi television station has been arrested as part of a wider crackdown on the opposition in a deepening political crisis that has left nearly 50 people dead, police said yesterday. Several networks broadcast footage of a police officer getting into the car of Mosaddek Ali Falu, chairman of private station Ntv, after he came out of the office of opposition leader Khaleda Zia on Sunday night. “He was arrested on charges of arson attack on a vehicle,” Dhaka police spokesman Masudur Rahman said yesterday. Falu has been one of the closest aides of Zia and was her political secretary when she was premier from 2001-06. He owns an array of businesses, including a new online news portal which launched on Sunday. Last month Abdus Salam, the owner of Bangladesh’s oldest private TV station, was arrested after his channel aired a speech of Zia’s fugitive son live from London. Salam has since been charged with sedition, which could see him sentenced to life in jail for airing the speech. Salam’s arrest came as the government launched a massive crackdown on the opposition in an effort to quell its month-long protests. More than 10,000 opposition activists have been arrested, including dozens of front-rank officials. Others have gone into hiding. Khaleda Zia faces murder case probe A PROTEST AGAINST STRIKE: Shop owners protest against the nationwide strike called by the Bangladesh Nationalist Party (BNP)-led opposition alliance in Dhaka yesterday. Zia called the protests early last month, urging supporters to enforce a nationwide blockade of roads, railways and waterways in an effort to force Prime Minister Sheikh Hasina to call new polls. The protests have triggered widespread violence that left at least 46 people dead — most victims of firebombing attacks on buses and lorries. In the latest deaths, two activists from the Islamist Jamaat-eIslami party were shot dead by police, including a 23-year-old student. Suspected saboteurs, meanwhile, removed clips from railway tracks, forcing a packed train to derail as the blockade entered a fifth week. State-run Bangladesh Railway officials said the locomotive and two coaches came off the tracks in the southeast, snapping the rail link between the port city of Chittagong and rest of the country. “It was an act of sabotage by the protesters. No one has been arrested,” BR’s spokesman Syed Zahurul Islam said. Local media said 15 people suffered minor bruises and cuts. The accident occurred despite the government’s deployment last month of more than 8,000 village police guards along the 3,000km (1,875 mile) rail network. Bangladeshi court yesterday ordered an investigation into an allegation of murder against opposition leader Khaleda Zia over the death of dozens of people in petrol bomb attacks during a continuing transport blockade. The order from a lower court in the capital Dhaka comes after a pro-government activist, A B Siddiqi, filed a private complaint against Zia, the leader of the main opposition Bangladesh Nationalist Party (BNP). “Metropolitan Magistrate Atiqur Rahman ordered the Gulshan police in Dhaka to investigate the complaint and submit a report by March 1,” Ashiqur Rahman, a court official, said. A lawyer for the plaintiff said Zia was responsible for the death of 42 people killed after opposition activists firebombed buses and trucks as part of a new wave of anti-government protests. “She is to blame for the death of 42 innocent people as she ordered her supporters to attack vehicles with petrol bombs,” said lawyer Roushonara Sikder Daizy. Experts said it was extremely unlikely that a private complaint would result in a criminal prosecution. But they said the case was designed to intimidate Zia, who launched the blockade as part of her campaign to topple the government. The 69-year-old leader, who Khaleda Zia ... in legal tangle has been holed up in her office since January 3, has already been charged by police with lesser crimes including “abetting” and “instigating” the firebombings. Zia called the protests early last month. She urged supporters to enforce a nationwide blockade of roads, railways and waterways to try to force Prime Minister Sheikh Hasina to call a fresh general election. The opposition boycotted the last poll in January 2014 on the grounds the result would be rigged. The protests have triggered widespread violence that left at least 46 people dead — mostly victims of firebombing attacks on buses and lorries. In the latest deaths, two activists from the BNP-allied Islamist Jamaat-e-Islami party were shot dead allegedly by police, including a 23-year-old student. More than 10,000 opposition activists have been arrested, including dozens of front-rank officials. Others have gone into hiding. US pledges friendship to new Lanka government AFP Colombo A top US diplomat promised yesterday that Washington would be a friend and partner of Colombo as she made the first visit by a senior American official since the toppling of Sri Lanka’s long-time strongman. In the build-up to last month’s presidential elections, a top lieutenant to then president Mahinda Rajapakse accused the United States of trying to bring about “regime change”, marking a new low in bilateral relations. But since Rajapakse was beaten at the ballot box, the United States has moved swiftly to rebuild ties with a country that has become increasingly close to China over the past decade. Speaking on a visit to Colombo, Assistant Secretary of State Nisha Biswal said the US was ready to help Sri Lanka on a range of issues, including its human rights record, which was hugely contentious under Rajapakse. “I am indeed excited to be in Sri Lanka and see for myself the energy that has the world talking about Sri Lanka and about Sri Lanka’s democracy and for all the right reasons,” Biswal said. “Sri Lanka can count on the US to be a partner and a friend in the way forward, whether it is on rebuilding the economy, on preventing corruption, and advancing good governance and ensuring human rights and democratic participation for all of its citizens.” Speaking to reporters after talks with Foreign Minister Mangala Samaraweera, Biswal stressed the new government could count on US support to meet “difficult challenges ahead”. “Sri Lanka can count on the US to be a partner and a friend in the way forward, whether it is on rebuilding the economy, on preventing corruption, and advancing good governance and ensuring human rights and democratic participation for all of its citizens” She did not directly refer to the pending US-initiated probe into allegations that up to 40,000 ethnic Tamil civilians were killed by Sri Lankan forces while defeating Tamil separatists in 2009. However, she said Washington wanted to work with Colombo to “find constructive ways forward on all the areas of interest between our two nations”. Samaraweera said he would be travelling to Washington for talks with Secretary of State John Kerry next week. “We want to raise the relationship between our two countries to a new level of cordiality and I hope to continue this dialogue in Washington,” he said. Rajapakse, who ruled the island for a decade, alienated many foreign leaders by refusing to co-operate with an international probe into alleged abuses in the final stages of a 37-year civil war that ended in 2009. Kerry had voiced appreciation for Rajapakse’s early concession of defeat in the January 8 vote, although there have since been allegations that he tried to hold onto power by staging a coup. Nisha Desai Biswal shaking hands with Ranil Wickremesinghe during their meeting in Colombo yesterday. China demand threatens tiger protection: experts AFP Kathmandu S This handout photograph received from the World Wide Fund for Nature (WWF) yesterday shows WWF staff demonstrating an unmanned aerial vehicle, used to monitor tiger and rhino activity, at Bardia National Park within Nepal’s Terai Arc region. Nepal’s success in turning tiger-fearing villagers into their protectors has seen none of the endangered cats killed for almost three years, offering key lessons for an anti-poaching summit which opened in Kathmandu yesterday. oaring demand for tiger parts in China has emptied Asia’s forests, frustrating efforts to protect the big cats, wildlife experts said as an antipoaching conference opened in Kathmandu yesterday. Around 100 experts, government and law enforcement officials from 13 nations are attending the five-day summit, co-hosted by Nepal and conservation group WWF to hammer out a regional plan to fight poaching. Anil Manandhar from WWF Nepal said conservationists’ goals should not limited to “zero poaching but (include) zero demand as well”. Mike Baltzer, leader of WWF Tigers Alive Initiative, praised Beijing for its efforts to save the wild cats from extinction and said: “China is doing a lot but the demand (for tiger parts) is so huge that it’s very difficult to address the issue.” “When you have a cultural perception among wealthy people in China that owning a tiger is a matter of prestige, you can’t change it overnight,” Baltzer said on the sidelines of the conference. “Dealing with demand will take a long time, poaching needs to be the focus otherwise it will be too late to save the tiger,” he said. “When you have a cultural perception among wealthy people in China that owning a tiger is a matter of prestige, you can’t change it overnight” Decades of trafficking and habitat destruction have slashed the global tiger population from 100,000 a century ago to approximately 3,000, according to the International Union for the Conservation of Nature. Tiger bones have long been an ingredient of traditional Chinese medicine, supposedly for a capacity to strengthen the human body. The animal is also hunted for its pelt, which can fetch up to $16,000 on the black market, and for its penis, believed to increase male sexual performance. Conservationists singled out India and Nepal for their strong performance and urged other countries attending the summit to prioritise wildlife protection. India in January reported a 30% jump in its tiger population since 2010, while Nepal saw numbers rise almost two-thirds between 2009 and 2013. Countries with tiger populations — Bangladesh, Bhutan, China, Cambodia, India, Indonesia, Laos, Malaysia, Myanmar, Nepal, Russia, Thailand and Vietnam — in 2010 launched a plan to double their numbers by 2022. 30 Gulf Times Tuesday, February 3, 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 Djokovic, Serena live up to top billing at Australian Open Novak Djokovic and Serena Williams lived up to their billing as the world’s best players at the Australian Open, but it was a tournament to forget for Swiss maestro Roger Federer. The opening Grand Slam of the season, played in milder conditions than Melbourne usually delivers and to record crowds, largely followed the script, although there were some shocks along the way. Djokovic maintained his formidable record on the tournament hardcourts, winning his fifth title for his eighth Grand Slam crown, overcoming sixth seed Andy Murray in the final 7-6 (7/5), 6-7 (4/7), 6-3, 6-0. He said the win had more meaning since becoming a husband and father last year. “I think it has deeper meaning, more intrinsic value now to my life because I’m a father and a husband,” he said. “It’s the first Grand Slam title I won as a father and a husband and I just feel very, very proud of it.” The irrepressible Williams consolidated her place among the game’s legends at age 33, overwhelming archrival Maria Sharapova 6-3, 7-6 (7/5) -- the dominant American’s 16th consecutive win over the Russian. Williams now has 19 Grand Slams, overtaking 18-time major champions Martina Navratilova and Chris Evert on the all-time Openera winners’ list, three behind Steffi Graf. And she is already targeting number 20 at the French Open. “I would love to get to 22,” she said. “I mean 19 was very difficult to get to. Took me 33 years to get here, so I would love to get there.” While there are some promising young players in action, the widely-touted generational change largely failed to materialise in the first major test of the new season. American teenager Madison Keys was the exception, striking a blow for the new brigade by defeating childhood idol Venus Williams in the quarter-finals before falling to Serena in the semis. Her reward is a place in the top 20. But no one else stepped up sufficiently. Canadian Eugenie Bouchard and Spain’s Garbine Muguruza were ousted by old stagers like Serena and Sharapova, while Sloane Stephens was sent packing by Victoria Azarenka who is on the comeback trail from injury and depression. It was a similar scenario among the men where none of the young guns such as Japan’s Kei Nishikori, Canadian Milos Raonic and Bulgaria’s Grigor Dimitrov were in contention at the bitter end. The biggest upset saw Federer make his Melbourne earliest exit in 14 years, beaten by 46th ranked Italian veteran Andreas Seppi in the third round. The defeat meant the 33-year-old has now not won a major since Wimbledon in 2012, raising fresh doubts as to whether he can add to his record 17 Grand Slams. The world number two insisted it was simply a blip and several of his rivals backed him to bounce back. A lesser upset saw Federer’s long-time rival Rafael Nadal bundled out in a straight sets quarter-final mauling by Czech veteran Tomas Berdych, a man he had beaten on all 17 previous times they had met. The fiercely proud Nadal, who suffered his first 6-0 “bagel” at a Slam since 2006, came into the tournament recovering from injury but made no excuses. Veterans Martina Hingis and Leander Paes clinched the mixed doubles in another boost for the old guard. The lemmings of quantitative easing In the QE era, monetary policy has lost any semblance of discipline and coherence By Stephen S Roach New Haven P redictably, the European Central Bank (ECB) has joined the world’s other major monetary authorities in the greatest experiment in the history of central banking. By now, the pattern is all too familiar. First, central banks take the conventional policy rate down to the dreaded “zero bound”. Facing continued economic weakness, but having run out of conventional tools, they then embrace the unconventional approach of quantitative easing (QE). The theory behind this strategy is simple: unable to cut the price of credit further, central banks shift their focus to expanding its quantity. The implicit argument is that this move from price to quantity adjustments is the functional equivalent of additional monetary-policy easing. Thus, even at the zero bound of nominal interest rates, it is argued, central banks still have weapons in their arsenal. But are those weapons up to the task? For the ECB and the Bank of Japan (BOJ), both of which are facing formidable downside risks to their economies and aggregate price levels, this is hardly an idle question. For the US, where the ultimate consequences of QE remain to be seen, the answer is just as consequential. QE’s impact hinges on the “three Ts” of monetary policy: transmission (the channels by which monetary policy affects the real economy); traction (the responsiveness of economies to policy actions); and time consistency (the unwavering credibility of the authorities’ promise to reach specified targets like full employment and price stability). Notwithstanding financial markets’ celebration of QE, not to mention the US Federal Reserve’s hearty selfcongratulation, an analysis based on the three Ts should give the ECB pause. The real sticking point for QE relates to traction In terms of transmission, the Fed has focused on the so-called wealth effect. First, the balance-sheet expansion of some $3.6tn since late 2008 – which far exceeded the $2.5tn in nominal GDP growth over the QE period – boosted asset markets. It was assumed that the improvement in investors’ portfolio performance – reflected in a more than threefold rise in the S&P 500 from its crisis-induced low in March 2009 – would spur a burst of spending by increasingly wealthy consumers. The BOJ has used a similar justification for its own policy of quantitative and qualitative easing (QQE). The ECB, however, will have a harder time making the case for wealth effects, largely because equity ownership by individuals (either direct or through their pension accounts) is far lower in Europe than in the US or Japan. For Europe, monetary policy seems more likely to be transmitted through banks, as well as through the currency channel, as a weaker euro – it has fallen some 15% against the dollar over the last year – boosts exports. The real sticking point for QE relates to traction. The US, where consumption accounts for the bulk of the shortfall in the post-crisis recovery, is a case in point. In an environment of excess debt and inadequate savings, wealth effects have done very little to ameliorate the balance-sheet recession that clobbered US households when the property and credit bubbles burst. Indeed, annualised real consumption growth has averaged just 1.3% since early 2008. With the current recovery in real GDP on a trajectory of 2.3% annual growth – two percentage points below the norm of past cycles – it is tough to justify the widespread praise of QE. Japan’s massive QQE campaign has faced similar traction problems. After expanding its balance sheet to nearly 60% of GDP – double the size of the Fed’s – the BOJ is finding that its campaign to end deflation is increasingly ineffective. Japan has lapsed back into recession, and the BOJ has just cut the inflation target for this year from 1.7% to 1%. Finally, QE also disappoints in terms of time consistency. The Fed has long qualified its post-QE normalisation strategy with a host of data-dependent conditions pertaining to the state of the economy and/or inflation risks. Moreover, it is now relying on ambiguous adjectives to provide guidance to financial markets, having recently shifted from stating that it would maintain low rates for a “considerable” time to pledging to be “patient” in determining when to raise rates. But it is the Swiss National Bank, which printed money to prevent excessive appreciation after pegging its currency to the euro in 2011, that has thrust the sharpest dagger into QE’s heart. By unexpectedly abandoning the euro peg on January 15 – just a month after reiterating a commitment to it – the oncedisciplined SNB has run roughshod over the credibility requirements of time consistency. With the SNB’s assets amounting to nearly 90% of Switzerland’s GDP, the reversal raises serious questions about both the limits and repercussions of open-ended QE. And it serves as a chilling reminder of the fundamental fragility of promises like that of ECB president Mario Draghi to do “whatever it takes” to save the euro. In the QE era, monetary policy has lost any semblance of discipline and coherence. As Draghi attempts to deliver on his nearly two-and-ahalf-year-old commitment, the limits of his promise – like comparable assurances by the Fed and the BOJ – could become glaringly apparent. Like lemmings at the cliff ’s edge, central banks seem steeped in denial of the risks they face. - Project Syndicate zStephen S Roach, a faculty member at Yale University and former Chairman of Morgan Stanley Asia, is the author of Unbalanced: The Codependency of America and China. The irrepressible Williams consolidated her place among the game’s legends at age 33 To Advertise [email protected] Display Telephone 44466621 Fax 44418811 Classified Telephone 44466609 Fax 44418811 Subscription [email protected] 2014 Gulf Times. All rights reserved Bernard Sabiiti, the author of the first Uglish dictionary, posing with his book at his office in Kampala. The Uglish language is Uganda’s strange, often funny, localised type of English. ‘Spewing buffalos’: understanding ‘Uglish’ By Amy Fallon Kampala/AFP A “detoother” or a “dentist” is a gold-digger looking for a wealthy partner, while “spewing out buffalos” means you can’t speak proper English. And a “side-dish” isn’t served by a waiter. Those and other terms are articles in Uganda’s strange, often funny locally-adapted English known as “Uglish,” which is now published for the first time in dictionary form. “It is so entrenched right now that, even when you think you cannot use it, you actually find yourself speaking Uglish,” Bernard Sabiiti, the author of the first Uglish dictionary, told AFP. “Even as I was researching, I was surprised that these words are not English because they were the only ones I knew. A word like a “campuser” - a university student - I used to think was an English word.” Uglish: A Dictionary of Ugandan English, which went on sale in bookshops across the east African country late last year, contains hundreds of popular Uglish terms, some coined by Ugandans as far back as the colonial period. Sabiiti, 32, said the informal patois was greatly influenced by the local Luganda language, and is a “symptom of a serious problem with our education system” that he claims has been deteriorating since the 1990s. Uglish is largely dependent on sentences being literally translated, word for word, from local dialects with little regard for context, while vocabulary used is derived from standard English. “MPs are almost notorious at using Uglish” Meantime, Sabiiti says, influence from the Internet, local media and musicians have seen additional words and phrases created and slowly enter the lexicon. The result is colourful but at times confounding expressions. If you haven’t seen someone for a while, for example, you’re “lost”, while if you “design well”, you are snappy dresser. And if you’re a “side-dish”, you are someone’s mistress. Today, Uglish is used by people from all walks of life, but particularly popular with youths. English is the working language in Uganda, and it remains the only medium of instruction in schools and in official business. But Sabiiti said everyone from the president to simple farmers speak at least some Uglish, which varies according to region, tribe and gender, and is regularly seen on signposts. “MPs are almost notorious at using Uglish, you see it in parliamentary debates,” said Sabiiti. But it wasn’t until 2011, a year after the term Uglish - pronounced “Youglish” - had been coined on social media, that Sabiiti began keeping newspaper cuttings, conducting interviews and searching online for material for his book. “I knew that people talked a lot about this, and my friends used to laugh about it,” said the author, whose fulltime job with a think tank has taken him to different regions of Uganda, and exposed him to the different types of Uglish. His book contains a brief history of Uglish, and a glossary of terms relating to education, telecommunications, society and lifestyle, food, transport and relationships. Sabiiti’s book has proven popular among the middle class, including academics, and with locals and foreigners alike. To date he’s sold about a thousand copies. “I’ve had incredible feedback from professional linguists, ordinary readers - some even suggesting more phrases - so I’ll be doing another edition,” said Sabiiti. “I don’t see it disappearing. I’m looking forward to seeing five years from now how many new words and phrases have joined the lexicon,” he said, adding some teachers, particularly in state schools, are passing Uglish on to their students. But, as the author stresses in the final chapter of his book, there comes a point when Uglish stops being funny. In 1997 Uganda introduced universal primary school education, which eliminated official school fees and made education accessible to millions more children. But literacy rates remain low: more than a quarter of the population cannot read or write, according to the UN, and critics say standards remain low in many schools. “Uglish is not something that should be encouraged, particularly for young, impressionable children. They really should learn what they call proper standard English.” Gulf Times Tuesday, February 3, 2015 31 COMMENT Tips to help you keep your customers Never take your clients for granted By Ahmed al-Akber Manama W inning a client is a battle on its own. Once you have acquired a client, you also need to ensure you keep them. The financial rewards associated with keeping your clients can be astonishing: according to Harvard Business School, increasing customer retention rates by 5% increases profits by 25% to 95%. Other research shows that it costs as much as six times as much to acquire a new customer as it does to retain an existing one. So in other words, once you have won a client, do what you can to keep them! In order to help you improve your client retention rates, here is a list of several things you should be doing at any point in time with your clients to nurture and improve your relationship with them: 1) Avoid over-promising and under-delivering. All right, so you have won the contract with the new client. Now you have to deliver on what you have promised. This is where a lot of client relationships can go pear-shaped. In selling your service, if you promised a lot, you now have a client with expectations that are sky high. Even if you do a good job, if its anything under what you have promised, they are disappointed. This situation comes with promising miracles, which is a consequence of over-selling and hype. Its far more effective to be genuine with what you promise. If you believe that the client needs to hear that you will provide the moon and the stars with your service, then the client probably isn’t worth acquiring anyway. When you win a new client, your “job” starts there as far as the client is concerned. In their eyes, you have simply earned the right to prove yourself. The client has assumed the risk of choosing you, and is now waiting for you to deliver. So make sure you do. Similarly, the risk you take on by acquiring a new client is that if they are not happy, they are likely to tell others about their bad experience with you, which is basically bad for business. Deliver on what you promise, and you will be fine. 2) Say “thank you” often. Never take your clients for granted. Saying thank you doesn’t mean that you need to buy them expensive gifts or treat them to the most expensive restaurants. It does mean that you need to show them that you appreciate their custom. Take them out for breakfast and pick up the cheque. Send them a hand-written letter, saying thank you and what your relationship with them means to you. Simple things like this go a long way with clients, and making sure that they feel appreciated will mean they will go out of their way to reciprocate when deciding whether to stick with your company or choose another. 3) Ask how they are doing. Make sure to ask about their own business. What’s happening in their department, their recent challenges and other news. This will keep you abreast of changes that may affect the work that you are already doing for them. It will also help you identify other opportunities that you could sell in. It’s a great situation to mention that you offer a new type of service or one that the client hasn’t purchased before. Using language as simple as “Did you know that we also do this…” is the way to go. are working on, the new clients that you have acquired, recent recognition you have received, case studies you have developed, and results you have generated for other clients. 5) Keep in touch with clients that move to new organisations. This is a wonderful by-product of offering a great service – people will want to continue using you, even after they move to other organisations. They will want to make sure they use tried and tested service providers – such as yours – to get the job done. Make sure you keep in touch with individuals that move to new organisations (simply by congratulating them and asking them to meet for coffee and a catch up). 6) Have some service standards in place. Having service standards in place ensures your clients get a consistent experience from you each time they work with you. Typical service standards include returning phone calls within a certain time (say within two hours) or answering e-mails within the same business day. Keeping your clients is an essential part of running your business. Make sure to think about what you’re doing to maintain the relationships you’ve built and how you will continue to benefit from them in the future. 4) Let them know how you are doing. Keeping clients updated with what’s going on with your business is just as important. Why? Relationship maintenance has a lot to do with keeping your business top of mind. And if you are out of sight, you are definitely out of mind. Keep them informed of the new projects that you zAhmed al-Akber is the managing director of ACK Solutions, a firm that helps companies to improve their marketing and sales results by offering more effective ways attracting customers and significantly better products and services. Ahmed has worked internationally in marketing, sales, and strategic planning at companies such as the Coca-Cola Company, Philip Morris International and Dell. Questions or comments can be sent to Ahmed on [email protected] Weather report Letters Three-day forecast Stop dog-fouling on pavements Dear Sir, I am a tenant in one of the residential complexes in the Al Waab area. Our neighbourhood has many gated communities. It is sad that some residents who go out to walk their dogs let them foul on pavements in the area without thinking about others who also have the right to enjoy walking and jogging around. We have been suffering from this problem for long now and because of that have almost stopped walking outside. The municipality has done a great job in providing wide and clean pavements and planting the area to facilitate walking. But we cannot enjoy them properly because of these uncaring dog owners. I hope the municipality will find a way to stop this uncivilised behaviour on the part of some residents. A resident (Name and address supplied) Republic of Ireland not part of the UK Dear Sir, I refer to the photograph of antiausterity protesters in Dublin, featured in yesterday’s Gulf Times, under the headline, “Austerity policies decried”. The photograph appeared on page 14 of the paper, as part of a two-page section on Britain. Dublin is the capital city of the Republic of Ireland, of which I am a citizen. The Republic of Ireland is not part of the United Kingdom, nor is it part of Britain. It has not been for 99 years. On previous occasions, when articles concerning the Republic of Ireland have featured, this section of the paper has borne the title, Britain and Ireland - a title which is geographically and politically correct and therefore preferable. With such a large expatriate readership to consider, I would ask you to be more accurate with your banners in future. Clodagh Flynn (e-mail address supplied) TODAY High: 24 C Low : 14 C Please send us your letters Poor visibility at places at first due to fog By e-mail [email protected] Fax 44350474 Or Post Letters to the Editor Gulf Times P O Box 2888 Doha, Qatar WEDNESDAY High: 25 C Low : 18 C P Cloudy THURSDAY High: 27 C Low : 17 C All letters, which are subject to editing, should have the name of the writer, address and phone number. The writer’s name and address may be withheld by request. Live issues Clear Fishermen’s forecast OFFSHORE DOHA Wind: NW-NE 03-12/15 KT Waves: 1-3/4 Feet INSHORE DOHA Wind: SE 04-12 KT Waves: 1-2 Feet Around the region Abu Dhabi Baghdad Turn your anger into productive action By Judi Light Hopson, Emma H Hopson and Ted Hagen Tribune News Service A re you one of those people who gets extremely upset over small things? Do you dwell on negative situations way too much? If so, you need to consider the cost of this lifestyle. For example, you can spend hours a day thinking about someone who’s cheating on you. Or you can spend years trying to get over a bad marriage or getting fired. Having a full range of emotions, which means you can feel everything from giddy love to intense anger, is actually indicative of a mentally healthy person. So be thankful if you do feel many types of feelings. But if your emotions are taking over your life, try managing them wisely. These tips can help: zLearn to speak or describe what you’re feeling. Do this instead of acting out emotions. You might learn to say, “This makes me very angry”, rather than raging and acting a little crazy. Acting out negative feelings hurts people around you. zSet aside time to cool your stress. Take a break for half an hour to make a few notes about your feelings. Put your anger and frustrations down on paper. Write in code or use abbreviations that no one else can read. zPlan some small actions to reverse your stress. This usually involves looking hard for some help from other people. For example, ask your husband to take care of certain calls to get your home repaired. Or ask your sister to help you locate a cleaning person for your elderly father’s home. zDecide how to take the high road. If you feel like screaming at someone, resist the temptation. You can always kick and rage later, if it’s justified. But initially, try to take some sort of action that will actually get the desired results you’re after. A friend of ours that we’ll call Katie, for example, was the victim of neighbourhood gossip. Her husband’s ex-wife had moved in at the end of the block, and the ex was spreading malicious lies about Katie. “I really thought about going house to house to tell my neighbours what a lying nut my husband’s ex-wife was!” Katie told us. Katie needed to cool down and think straight. After all, her reputation was being smeared. Should she threaten the ex with a character defamation suit? Should she call out the ex for a slugging match on the front lawn? “I decided to take over a cake I’d baked to my husband’s ex,” Katie told us. “I told her I’d put her down to help me with the neighbourhood association’s quarterly meetings for the coming year. I was going to make her sqirm.” Katie waited about a month. “My husband’s ex-wife suddenly moved,” says Katie. “When she saw she wasn’t going to get a dogfight out of me, she pulled up stakes and left.” It takes an enormous amount of willpower not to react to cruelty and character defamation. Katie, for example, would have been justified in sending the ex a warning letter signed by an attorney. But Katie has three stepchildren who might suffer in the process of fanning the flames. Wasting emotional energy can steal your time, destroy your relationships and throw your life off track. Losing your cool affects how other people perceive you as well. If you really want a promotion, a marriage proposal or friends with class, make sure others know you can control your emotions under the worst of circumstances. zJudi Light Hopson is the executive director of the stress management website USA Wellness Cafe at www.usawellnesscafe.com . Emma Hopson is an author and a nurse educator. Ted Hagen is a family psychologist. Dubai Kuwait City Manama Muscat Riyadh Tehran Weather today P Cloudy Clear Clear P Cloudy Clear Clear P Cloudy P Cloudy Max/min 25/14 23/09 27/17 28/11 22/17 25/22 30/16 16/07 Weather tomorrow P Cloudy Clear P Cloudy Clear Clear Clear P Cloudy P Cloudy Max/min 26/16 22/09 29/17 28/11 24/17 25/22 30/15 17/06 Weather tomorrow Clear P Cloudy Clear P Cloudy P Cloudy C Showers Clear Clear Clear Clear C Storms Clear P Cloudy P Cloudy Cloudy P Cloudy C S Showers P Cloudy T Storms P Cloudy C Storms P Cloudy Cloudy Max/min 16/11 17/11 34/23 -1/-3 23/12 25/18 30/24 25/18 21/12 13/09 29/26 29/16 06/00 28/21 -3/-7 21/11 05/-03 06/-1 27/20 06/-4 29/24 24/18 10/00 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 Clear Clear P Cloudy S Showers Clear Clear T Storms Clear Clear P Cloudy T Storms Clear S Showers P Cloudy Snow C Storms P Cloudy Cloudy T Storms P Cloudy C Storms P Cloudy Clear Max/min 14/08 19/14 34/23 02/-3 24/11 27/19 32/24 24/16 20/14 11/06 30/26 28/15 06/-1 27/20 -2/-5 21/11 -4/-7 03/00 28/18 06/-3 29/24 24/15 08/00 32 Gulf Times Tuesday, February 3, 2015 QATAR Teyseer Motors launches two new Suzuki vehicles T eyseer Motors, the official distributor for Suzuki vehicles in Qatar, launched two new models, the Ciaz sedan and the 7-seater Ertiga at a special ceremony at its showroom yesterday. The GLX models of both the cars are priced at QR52,000 and Ertiga standard model begins at QR 49,900. “The new Suzuki Ciaz, with its elegant design, aerodynamic styling and stunning looks is definitely destined to capture the hearts of youngsters in Qatar. This 1.4-litre automotive sensation is a real ‘value-for-money’ deal as it is packed with highly advanced features,” said Adnan Mannai, group administration director, Teyseer Group of Companies. Koichi Suzuki, general manager of Middle East & Africa Automobile Marketing Group of Suzuki Motor Corporation said that the Ciaz has an ergonomically designed, spacious and relaxing cabin with ample storage space. He said: “Suzuki recorded 12% growth in Qatar in 2014 compared to the previous year. We sold 1,300 units out of which Suzuki Swift had a great share.” The Suzuki Ciaz has several features such as camera assisted reverse parking, keyless push start system, smart key, rear A/C vents, personal reading lamps and rear sunshade, among a host of other class-leading features. Its wooden garnish combines with the chrome surrounds on the dash to reflect a premium appeal. Built on Suzuki Total Effective Control Technology, with effective use of high tensile strength steel, the body of Ciaz is very strong. This combines with dual airbags, seat belt preten- Officials of Teyseer Motors and Suzuki Motor Corporation at the press conference. sioners and force limiters, ABS with EBD and rear parking sensors to ensure maximum safety for its passengers. “The 7-seater Ertiga was conceived, designed and developed with the ‘family’ in mind. Powered by a 1.4-litre engine, the Ertiga is a true combination of power and comfort as it is capable of overcoming the toughest terrains and the harshest weathers,” said Medhat Greiss, general manager of Teyseer Motors. Designed to carry 7 people in a 3-row layout, the Ertiga ensures maximum comfort and space to every passenger, with its long wheelbase, high headroom and intelligent seat positioning. This combines with the foldable second and third row to ensure there is flexibility and space for everyone and everything one needs to bring along. The launch ceremony was The new Suzuki vehicles launched in Qatar yesterday. attended by the Japanese Ambassador Shingo Tsuda , promi- nent officials of Teyseer Group of Companies, officials of Su- zuki Motor Corporation and a number of invitees and guests. Global luminaries to attend GU-Q’s conference today S ome of the world’s most distinguished experts in the fields of culture, politics, and Islamic law and history will be among an array of global scholars participating in Georgetown University in Qatar’s (GU-Q) ‘Scapes of Power’ conference starting from today. The two-day conference is organised to celebrate the university’s 10 year anniversary in Doha. Dr Laura Doyle, from the University of Massachusetts-Amherst, Dr. Sherman Jackson, from the University of Southern California, and Dr John Esposito, from Georgetown University in Washington DC, will be featured at the public conference, recognising a decade of academic and research excellence of GU-Q. While scholars often attend conferences in their chosen fields, this anniversary conference will uniquely bring together a wide variety of specialists-from historians, to economists, to sociologists and more-to discuss a concept that invariably connects all the various academic disciplines. What is power? How is it exercised and by whom? What changes over space and time? These are the central questions that will be the highlight of the lively and engaging two-day public forum. Each day of the conference will be launched with a lecture from a different keynote speaker. The first day will feature Dr Laura Doyle, a professor of English at the University of Massachusetts-Amherst, who will present “Inter-im- Dr Laura Doyle Jackson perial Powerscapes”. The prolific author and codirector of the World Studies Interdisciplinary Project, which seeks to foster scholarship and teaching informed by non-eurocentric world history, will appraise how empires operate as co-operative units, and as such, influence a global environment, rather than focusing solely on empire as the specific areas of a state’s national interests. Named among the top 500 most influential Muslims in the world by The Royal Islamic Strategic Studies Centre in Amman, Jordan and the Prince Alwaleed Bin Talal Centre for Muslim-Christian Understanding at Georgetown University in Washington DC, Dr Sherman Jackson, a professor at the University of Southern California, will present the second keynote address of the conference. His presentation, “Islam and Power: Between Shari’ah and the Islamic Secular”, will launch an important panel discussion titled “Muslims in a Global Perspective”. The conference will also include an array of topics spanning history from ancient Rome to modern China, as well as charting the globe from Latin America to Europe, Africa and Asia. Deadline for Vodafone literary contest nears V odafone has announced that there are only 10 days remaining before it closes its second literary contest, which boasts of a QR145,000 prize pot, the telecommunications network said in a statement. Under the patronage of HE the Minister of Culture and Heritage Dr Hamad bin Abdul Aziz al-Kuwari, the competition was launched last December 14 with the theme “I treated you with honesty, guidance, and integrity,” culled from a poem by Qatar founder Sheikh Jassim bin Mohamed alThani. Vodafone said Qatar citizens and residents have until the February 13, 2015 to take part in one of the competition’s two categories: Category 1: Taking inspiration from the competition’s title “I treated you with honesty, guidance, and integrity”, entries should be one short story between 500 to 1,000 words. The prizes for this category are QR20,000 for the first prize, QR15,000 (2nd prize), and QR10,000 (3rd prize). Category 2: Entries should be a collection of stories on any subject matter with a minimum of 10 stories or 100 pages. The prizes include, QR50,000 for the first prize, QR30,000 (2nd prize), and QR20,000 (3rd prize). To understand the full terms and conditions and details on how to submit literary entries, visit twww. vodafone.qa. Vodafone and government officials during the launching ceremony. Aspire to host Sport Day events of 24 organisations, companies A spire Zone Foundation, which manages exceptional and world-class sports facilities, will host the National Sport Day (NSD) celebrations of 24 organisations and companies. For the fourth year, RasGas Company and the National Human Rights Committee (NHRC) have chosen Aspire Zone to celebrate the NSD. Both companies have lined up a series of funfilled activities and sport competitions for their em- ployees and their families. Lekhwiya, Qatar Petroleum (QP) and Qatar Stocks Exchange (QSE) will also converge at Aspire Zone to mark this year’s NSD. Aspire Zone offers 2.5sq km of space for sporting venues and facilities, allowing thousands of participants and visitors to engage in sports and other physical activities. Fourteen companies and organisations are planning a wide range of activities for the public. These in- clude Lekhwiya, Maersk Oil, Action on Diabetes, Al-Ta’adhod Group (GREE Air Conditioners), Qatar Cycling Federation, Qatar Development Bank, Al-Noor Institute for the Blind, Ministry of Energy and Industry, Qatar Women’s Sports Committee, Qatar Football Association, Sidra Medical and Research Center — a member of Qatar Foundation, the Cultural and Social Center for People with Special Needs, Sports Corner and Abdul- lah Abdulghani & Bros. Co. W.L.L. Ten organisations and companies will hold activities for their staff members and their families. These include QP, RasGas, QSE, NHRC, Hemaya Security Services, Qatar Chemical and Petrochemical Marketing and Distribution Company (Muntajat), ORYX GTL, Msheireb Properties, the Supreme Council of Health and the Supreme Committee for Delivery & Legacy. HIGHER VALUE | Page 15 REFORM PLAN | Page 20 Ma regains spot as Asia’s richest man Obama unveils $3.99tn budget; $474bn deficit Tuesday, February 3, 2015 Rabia II 14, 1436 AH GULF TIMES LONG-TERM VISION: Page 3 QNB named ‘most valuable banking brand’ in MEA BUSINESS N-KOM celebrates 100th LNG carrier repair N The Erhama Bin Jaber Al Jalahma Shipyard celebrating 100th LNG carrier repair yesterday. N-KOM’s strengths include the might of its leading parent companies - Qatar’s Nakilat and Singapore’s Keppel Offshore & Marine - a high level of LNG carrier expertise and Erhama Bin Jaber Al Jalahma Shipyard’s strategic location in Ras Laffan Industrial City. GIS 2014 net profit jumps to QR1.4bn Gulf International Services (GIS) posted a net profit of QR1.4bn last year compared with QR677mn in 2013, the company announced in Doha yesterday. GIS board of directors’ has proposed a dividend payment of QR5.50 a share, representing 55% of the nominal share value. This will be presented before the company’s ordinary general assembly meeting at the Marriott on February 18. GIS’ earnings per share stood at QR7.59 in 2014 compared to an EPS of QR3.64 for the year that ended on December 31, 2013. The election to and the “re-composition” of the board of directors for the period from 2015 to 2018 will also be held at the ordinary general assembly. GIS was incorporated as a Qatari shareholding company in 2008, by Qatar Petroleum (QP). In May, 2008, QP listed 70% of the company’s issued capital on the then Doha Securities Market. Prior to the IPO, GIS was fully owned by QP. GIS has significant investments in national and international oil and gas industry, including well support services, offshore and onshore drilling services, helicopter maintenance and transportation services, insurance and reinsurance services. Currently, GIS acts as a holding company which owns and controls stakes in the following companies: 100% ownership of Al Koot Insurance and Reinsurance Company, 100% ownership of Gulf Drilling International, 100% ownership of Gulf Helicopters Company and 100% ownership of Amwaj Catering Services. Deflation alarms ring as EU, Chinese factories struggle; US steady Reuters London/Sydney E uropean and Chinese factories slashed prices in January as production flatlined, heightening global deflation risks that point to another wave of central bank stimulus in the coming year. While the pulse of activity was livelier in other parts of Asia - Japan, India and South Korea - they too shared a common condition of slowing inflation. Central banks from Switzerland to Turkey, Canada and Singapore have already loosened monetary policy in the past few weeks. The European Central Bank also announced a near trillion-euro quantitative easing programme in a bid to revive inflation and drive up growth, though much of the bloc’s manufacturing purchasing managers’ index (PMI) survey was collated before that announcement. “There are a lot of places where central banks are focusing on easing rather than anything else. In the eurozone, the ECB is going all-out now,” said Jacqui Douglas, senior global strategist at TD Securities. The final manufacturing PMI for the eurozone from financial data provider Markit, published yesterday, was 51.0, in line with the preliminary estimate. Although at a six-month high, it was only just above the 50 mark that separates growth from contraction. In December, the index came in at 50.6. Worryingly for policymakers, firms cut prices in January at the steepest rate since mid-2013. Data on Friday showed annual inflation was a record-equalling low of -0.6% in January across the 19 nations using the euro. In Britain, manufacturing grew slightly faster but factories cut prices at the fastest pace since 2009. The Bank of England will keep interest rates at a record low until at least October, later than previously thought, a Reuters poll found last week. Earlier yesterday, surveys from China showed manufacturing struggling at the start of 2015 in the world’s second biggest economy. The Chinese HSBC/Markit PMI inched up a fraction to 49.7. But of more concern the official PMI, which is biased towards large factories, unexpectedly showed activity shrank for the first time in nearly 2-1/2 years. The reading of 49.8 in January was down from December’s 50.1 and missed a median forecast of 50.2. The report showed input costs sliding at their fastest rate since March 2009, with lower prices for oil and steel playing major roles. The final Markit/JMMA PMI edged up in January as the sustained weak- ness of the yen drove up exports. Improving exports were also a feature of South Korea’s PMI which returned to growth for the first time in five months. India’s manufacturing activity continued to grow, though the headline index eased slightly but importantly for the prospect of more policy stimulus, cost pressures were the mildest in 70 months as commodity prices fell. In the Americas, the US manufacturing sector expanded in January at roughly the same pace as in December which was the slowest rate in a year, according to Markit. Markit’s January final US manufacturing purchasing managers index was unchanged from December 53.9. Markit noted that some goods producers noticed “weaker spending patterns among clients in the oil and gas sector,” which caused new business growth to weaken. An alternative gauge of US manufacturing from the Institute of Supply Management showed the pace of growth slowed in January with the index falling to 53.5 from 55.1. Manufacturing sector activity also slowed in Canada in January to its slowest pace in over a year-anda-half. The RBC/Markit Canadian manufacturing PMI fell to a seasonally adjusted 51.0 last month from 53.9 in December, the lowest level since April 2013. akilat-Keppel Offshore & Marine (N-KOM) celebrated its 100th LNG carrier repair at Erhama Bin Jaber Al Jalahma Shipyard in Qatar. The milestone is confirmation of N-KOM’s position as a leading provider of repairs and maintenance to LNG carriers in the region. N-KOM’s strengths include the might of its leading parent companies — Qatar’s Nakilat and Singapore’s Keppel Offshore & Marine — a high level of LNG carrier expertise and Erhama Bin Jaber Al Jalahma Shipyard’s strategic location in Ras Laffan Industrial City. Abdullah Fadhalah al-Sulaiti, N-KOM chairman and Nakilat managing director said, “Nakilat is a world-leader in global gas transportation and we are proud that Nakilat’s joint venture with Keppel Offshore & Marine has grown to become a leader in the repair of LNG carriers. “The shipyard’s continued success is part of our commitment to the sustainable diversification of Qatar’s economy and to the Qatar National Vision 2030. On the occasion of this important milestone, we are deeply thankful to HE the Minister of Energy and Industry, Dr Mohamed bin Saleh al-Sada for his invaluable guidance. We are also grateful to our stakeholders including QP for their ongoing support of Erhama Bin Jaber Al Jalahma Shipyard.” N-KOM CEO Chandru Rajwani added: “N-KOM has successfully established itself as the region’s leading service provider for gas carrier repairs and gas-related solutions within a short span of four years. This achievement today is testament to that. “Moving forward, N-KOM will continue to deliver in a safe, quality and timely manner to our customers as we strive towards becoming not only a centre of excellence for gas carrier repairs but also the preferred shipyard delivering solutions.” The shipyard counts major industry players such as MOL, NYK, “K”-Line, Teekay, Pronav and Shell amongst its growing clientele today. In an effort to strengthen its service offering for sustainable solutions, the shipyard has signed an agreement to co-operate on LNG and gas solution projects. N-KOM is set to undertake the first ME-GI (electronically controlled–gas) conversion of a Q-Max LNG carrier later this year, and is also involved in other engine retrofit projects for vessels to run on LNG fuel. Established in 2007, N-KOM is a joint venture between Nakilat and leading offshore rig constructor and ship repairer Keppel Offshore & Marine. Nakilat is a Qatari marine transport company providing the essential transportation link in Qatar’s LNG supply chain. Its LNG shipping fleet is the largest in the world, comprising 61 LNG vessels. The company also manages and operates four large LPG carriers and four LNG carriers. Through two strategic joint ventures, N-KOM and NDSQ, Nakilat operates the ship repair and construction facilities at Erhama Bin Jaber Al Jalahma Shipyard. Nakilat also offers a full range of marine support services to vessels operating in Qatari waters. Gulf Times Tuesday, February 3, 2015 3 BUSINESS Doha Bank wins ‘Golden Peacock Global Award’ for CSR D oha Bank has been awarded the “Golden Peacock Global Award 2014 for Corporate Social Responsibility” during the 9th International Conference on CSR held in Mumbai, India. “This milestone award symbolises Doha Bank’s superior ability to balance its financial targets, economic value addition, and social welfare. We, at Doha Bank, always believe in promoting positive social and environmental changes,” said Doha Bank Group CEO Dr R Seetharaman. He added, “This award is in recognition of Doha Bank’s customer-driven initiatives such as educational and health benefits and involvement in social causes. As a result, Doha Bank has been able to introduce new and innovative products even during tough market conditions. “We take great pride in being a dynamic entity with strong values and a customer-centric approach that has sustained over a period of time. Our functional model with economic, environmental, and social initiatives, contributing towards the welfare of the public has always been a welcomed approach towards a bright future”. Seetharaman said Doha Bank has committed to a long-term partnership through its “EcoSchool Programme,” which includes creating a platform for schools to contribute to the socio-environmental improvement and intellectual development of human society in Qatar and globally. The programme, he added, integrates the “green culture” through schools to become eco-friendly institutions us- ing practical steps towards a greener path, leaving less carbon footprint, and expansion of the programme across Doha Bank’s footprint. He also said the bank maintains a “well-defined” environmental policy: “reduce, reuse, and recycle.” Doha Bank runs various initiatives to support Qatar’s “Go Green Qatar” drive such as beach clean-up, dedicated Green Bank website, environment-friendly and biodegradable credit cards, paperless banking, Green Bank Task Force Committee, annual Al Dana Green Run, public awareness campaigns through ATMs, and participation in the Earth Hour. “Doha Bank is and continues to be one of the pioneers of ‘green banking’ in the Middle East region and has reached out to the larger community through its long-standing CSR endeavours. The bank remains committed to advocating awareness on environmental issues and focusing on the economic and social challenges both regionally and across international borders,” Seetharaman said. Doha Bank has now established a “dominant position” in Middle East banking landscape with 31 state-of-art branches, 22 e-branches, including pay-offices, and two mobile units with 125 ATMs. Its operations are spread across 14 countries including Qatar, UAE, Kuwait, India, Turkey, Japan, Singapore, China, South Korea, Hong Kong, Australia, Canada, UK, and Germany with a strong network of correspondent banking relationships. Doha Bank representatives receive the “Golden Peacock Global Award 2014 for Corporate Social Responsibility” during the 9th International Conference on CSR held in Mumbai, India. QNB named ‘best bank brand’ in MEA for 2015 Q NB has been named “most valuable banking brand” in the Middle East and Africa (MEA) region by Brand Finance in its annual survey published by The Banker Magazine, an affiliate of Financial Times newspaper. The bank’s performance in 2015 increased its brand value to QR9.476bn ($2.603bn), up 44% compared to 2014 levels, which saw QNB rise to 79th place in the list of World’s top 500 banking brands. QNB said moving 22 places up the 2014 Rankings “was testament to the combination of continuing robust financial performance and successful international expansion of a brand that now operates in 26 countries across three continents.” Group communication general manager Yousef Darwish said, “To be considered the most valuable banking brand in the Middle East and Africa is a significant geographical achievement. Over the last 12 months, QNB has gained QR2.9bn ($792mn) to our brand value and this is more than any other bank in the industry. “We have come a long way from our brand value of QR2.5bn ($703mn) in 2010 but there is still a great deal of work to be done if we want to achieve our future vision of becoming a ‘MEA icon’ by 2017. The importance of our brand and how it is perceived by our diverse range of stakeholders is paramount across our domestic and international network of operations and this prestigious accolade from Brand Finance proves that we are making impressive progress.” Brand Finance chief executive David High said, “QNB’s vision to QNB’s “AA” brand rating given by Brand Finance for 2015 was in recognition of the bank’s “strong and robust” financial performance in 2014. become an iconic brand across the Middle East and Africa is clearly bearing fruit. It is the most valuable bank brand in the region and is pulling ahead of the field having added more brand value this year than any of its regional rivals. Now ranked 79th globally, the QNB brand is clearly gaining traction worldwide and in due course it could become an iconic bank brand not just in the Middle East and Africa but globally.” Brand Finance used stringent judging criteria in the value assessment process of banking brands. The factors considered included size of operations, geographical presence, global and regional reputation, and brand classification. QNB’s “AA” brand rating given by Brand Finance for 2015 was in recognition of the bank’s “strong and robust” financial performance in 2014. Net profit for the year ending December 31, 2014 was $2.9bn (up 10.3% on 2013 levels), total assets reached a record high of $133.6bn (up 9.7%), and credit ratings remained “among the highest” experienced across the Mena region. In 2014, QNB also took a 19.4% stake in Ecobank Transnational Incorporated, a leading pan-African bank with a presence in 36 countries across the African continent. The partnership was part of QNB’s international expansion plans and a significant contribution towards QNB’s vision to become a MEA icon by 2017, the bank said. Qafco awards 6-year service contract to GE joint venture Industries Qatar subsidiary Qatar Fertiliser Company (Qafco) has awarded a six-year, long-term service contract to downstream technology solutions (DTS) arm of GE Oil and Gas to help optimise the performance of its plant in Mesaieed. The deal covers the standard maintenance and repair of existing GE on-site power and compression equipment as well as training for Qafco workers and site operators. Qafco’s Mesaieed facility produces ammonia and urea contributing to the total Qafco annual production capacity of 3.8mn MT of ammonia and 5.6mn MT of urea. he new service agreement includes six Frame 6 gas turbines, 33 centrifugal compressors (various models), 17 steam turbines, and 16 centrifugal pumps at Mesaieed. The actual agreement is between Qafco and GE’s joint venture with Qatar Petroleum, Al Shaheen GE Services Company, which supports GE’s regionalisation strategy of deploying capability and resources closer to its customers around the world. “A key priority for us is to optimise the longterm availability and efficiency of our Mesaieed plant’s existing fertiliser production facilities,” Khalifa A al-Sowaidi, Qafco CEO said. Not only is GE Oil and Gas the original equipment manufacturer for the gas and steam turbines, centrifugal compressors and associated equipment, but it also has the proven local customer services capabilities Qafco needs to help it meet the production targets, he added. “This agreement with Qafco further builds on our strong partnership with the organisation and our long-term presence in Qatar,” according to Rami Qasem, president & CEO of GE Oil and Gas for the Middle East, North Africa and Turkey. The existing equipment will bring the cutting edge in GE’s innovative technology, assuring higher efficiency, reliability and will support the optimal performance of the company’s fertiliser plant in Mesaieed, Qatar, he said. “Our long-term service agreement with Qafco illustrates the many advantages that we can offer our customers in the fertiliser and other downstream industries through our collaborations with local project partners,” said Hasan Dandashly, vice president of DTS, GE Oil and Gas. Doha entrepreneurship forum to Oil rally lifts Saudi highlight key drivers of growth market; property T he staging of the “2nd Entrepreneurship in Economic Development Forum” on March 2 and 3 is expected to highlight key drivers of sustainable economic growth, the Interactive Business Network (IBN) said in a statement. IBN said the forum also aims to emphasise the importance of developing the private sector and small and medium-sized enterprises (SMEs), investing in an entrepreneurial ecosystem and human capital, as well as creating a knowledge economy to support economic development in line the Qatar National Vision 2030. Organised by Qatar University in collaboration with the Ministry of Economy and Commerce and IBN, the forum highlights the significance of active involvement and collaboration among organisations within the private and public sectors that actively promote and encourage entrepreneurship. This also includes entrepreneurship centres, the Ministry of Economy and Trade, and a host of other private and public sector organisations. During the forum, to be held at the Sheraton Doha Resort & Convention Hotel, four interactive sessions and several keynote messages will be delivered by a host of international speakers. The keynote messages include “Investment in entrepreneurship to shape a new company,” “Entrepreneurship practices: Investing in the human capital of the company,” and “Economic restructuring and shift from a manufacturing sector towards the service sector.” Meanwhile, the sessions will revolve on “Developing the private sector in Qatar and other GCC countries to diversify the economic pillars,” “Developing an entrepreneurial eco system,” “Knowledge economy and the new know-how: New forms and competitiveness for SMEs,” and “Social entrepreneurship and innovation: the growing importance of social innovation.” IBN CEO Raed Chehaib said, “The forum, which carries the theme “Fostering the new generation of entrepreneurs in Qatar and the Gulf,” will be the first-of-its-kind platform in the region for defining the issues, assessing the prevailing entrepreneurial culture in Qatar and the wider Gulf. He added, “We are hoping to inspire and encourage the young generation in Qatar and other GCC countries to develop their entrepreneurial skills. At the same time, we are also aiming to emphasise the importance of a cohesive and well-coordinated action among key public and private sector organisations in facilitating entrepreneurship. “We are therefore aiming to attract wide interest and participation of officials and policy makers, major public and private institutions involved in education and youth development, business leaders, banks and specialised financial institutions, economists and experts in various fields, as well as the academic community in Qatar, and the rest of the Gulf countries and internationally.” stocks boost Egypt Reuters Dubai A Chehaib: First-of-its-kind platform in the region. rebound in global oil prices and decisions by state-controlled companies to pay cash bonuses to employees boosted Saudi Arabia’s stock market yesterday, while other Gulf bourses were mixed in choppy trading. Brent crude fell in early trade on news of a US refinery strike and weak Chinese manufacturing data, but bounced back later in the day and traded above $54 per barrel by the time Saudi Arabia’s market closed. Qatar’s benchmark added 0.5%, largely on the back of Islamic lender Masraf Al Rayan, which jumped 3.9%. The bank reported estimate-beating fourth-quarter results and a dividend hike last week. The Saudi stock index rose 0.8% as petrochemicals firm Saudi Basic Industries, the kingdom’s largest listed company, jumped 2.4%; other stocks in the sector also climbed. Petrochemical prices are linked to oil and the sector was hit hard in a sell-off triggered by oil’s plunge last year. Retailers also performed well yesterday: Fawaz Alhokair surged 8.8% and Jarir Marketing jumped 2.6%. This followed announcements by large companies such as Saudi Electricity and Saudi Telecom that they would pay out hundreds of millions of dollars in bonuses to their workers, following last Thursday’s order by the new king that Saudi state employees would receive two months of extra salary to mark his accession. Part of the corporate bonuses is expected to be spent on consumer goods, boosting the retailers’ revenues and profits. Investors were less enthusiastic about the companies which will use their resources to pay out the cash; shares in Saudi Electricity edged up 0.6%, while Saudi Telecom fell 0.8%. Other Gulf markets had closed when oil was still in the red and their performances were mixed. Dubai’s index fell 1.1%; the benchmark had surged 4.5% in the previous session. But shares in property developer DAMAC shot up 6.8% after it reported an 11% rise in fourth-quarter profit yesterday, according to Reuters calculations. Abu Dhabi’s index edged down 0.6% as most blue chips pulled back. Egypt’s bourse edged up 0.5% as property developers continued to gain on hopes that Egyptians will use real estate as a hedge against the weakening pound. Talaat Moustafa Group rose 1.2%, Amer Group added 0.8% and Palm Hills Development gained 0.2%. Elsewhere in the Gulf, Kuwait’s index edged up 0.3% to 6,654 points; Oman’s index inched up 0.02% to 6,574 points, while Bahrain’s measure edged up 0.4% to 1,423 points. 4 Gulf Times Tuesday, February 3, 2015 BUSINESS IDB unit provides Islamic risk cover for Apache’s Egypt projects Reuters Cairo A MV UBC OTTAWA, the world’s largest sugar carrying vessel, calls at DP World’s flagship Jebel Ali Port (file). Al Khaleej has 1.5mn metric tonnes of sugar stockpiled at or in transit to its refinery in Dubai, managing director Jamal al-Ghurair said in an interview at the Platts Kingsman sugar conference in Dubai. Khaleej holds ‘near record’ sugar on hand amid surplus New refinery to start operations in Saudi A new sugar refinery is due to start operations in Jizan in southwest Saudi Arabia by the end of 2017, adding to a stream of projects that will significantly raise the Middle East’s refining capacity. “At the moment the design is complete and financing is ready and we will start scratching the ground in April this year to hopefully produce sugar by the end of 2017,” Sufian Ibrahim, project manager of Al Reef Sugar Refinery, told Reuters on the sidelines of the Platts Kingsman Dubai Sugar Conference. Substantial new capacity for sugar refining is expected to come on stream in the next few years with projects planned in Oman, Saudi Arabia, Iraq and Algeria. The region’s consumption stands at 15mn tonnes a year, with a refining capacity of 12.5mn tonnes. At full capacity, Al Reef is expected to refine 3,000 tonnes of sugar a day, and plans to export two thirds of its production elsewhere in the Middle East. The company plans to go public after five years of production. Al Reef will initially refine raw imported sugar, but in the long term it plans to acquire agricultural land in East Africa to grow its own cane sugar crop. Bloomberg Dubai A l Khaleej Sugar Co, the Dubai-based refiner, has enough supply on hand to meet demand for most of this year amid signs that global oversupply will cap price gains this year. Al Khaleej has 1.5mn metric tonnes of sugar stockpiled at or in transit to its refinery in Dubai, managing director Jamal al-Ghurair said in an interview at the Platts Kingsman sugar conference in Dubai. The plant is operating at 60% of capacity, he said. “There is a lot of supply,” and inventories are “near a record,” al-Ghurair said on Sunday. “We’re getting shipments all the time.” Sugar surpluses have prevailed for most of the past five years, causing futures to fall 59% from a 30-year high in 2011. Supply will fall short of demand by 122,000 tonnes for the 2014-15 season that started on October 1, after a surplus of 5.6mn tonnes a year earlier, Platts Kingsman said on Sunday. Raw sugar futures dropped 0.3% to 14.74 cents a pound at 12.34pm Dubai time yesterday on ICE Futures US in New York. Prices probably won’t trade any more than 2 cents up or down for the rest of the year as oversupply will limit gains and buyers will keep prices from falling too low, al-Ghurair said. Prices decreased almost 12% last year as the global glut pushed prices to the lowest since 2008. Global sugar production will drop to 177.1mn tonnes in 2015-2016 from 179.1mn tonnes a year earlier, according to Platts Kingsman. Consumption will advance 1.7% to 182.3mn tonnes, below the 10-year aver- age of 2%, partly because low crude prices will curb demand for imports by some oil producers, Claudiu Covrig, a Platts Kingsman analyst, said on Saturday. That would leave the biggest shortage in six years, at 5.2mn tons, according to Covrig in a report. Low oil prices have had “no effect” on demand at Al Khaleej, al-Ghurair said. Brent crude has tumbled 51% in the past year amid a global supply glut. Al Khaleej is ready to consider buying more sugar from India, al-Ghurair said. About 80% of its raw sugar comes from Brazil, the world’s biggest supplier, he said. India is said to be considering an export subsidy of 4,000 rupees ($65) a tonne on raw sugar, according to two government officials on January 27 who asked not to be identified because the proposal is confidential. “We are waiting for India,” al-Ghurair said. “It all depends on the price.” unit of the Jeddah-based Islamic Development Bank, a multilateral lending institution, has provided $80mn worth of Shariahcompliant reinsurance to cover political risk for oil and gas projects in Egypt. Such credit guarantees by reinsurers like the Islamic Corp for the Insurance of Investment & Export Credit (ICIEC) are gaining traction and attracting a wider range of firms to the Islamic capital markets. The deal covers the Overseas Private Investment Corp for its own insurance policy on the exploration projects of Houstonbased Apache Corp, ICIEC said in a statement on Sunday. The announcement comes as Egypt is seeking new sources of energy to cope with its worst The deal covers the Overseas Private Investment Corp for its own insurance policy on the exploration projects of Houston-based Apache Corp, ICIEC said in a statement on Sunday energy crisis in decades, caused by declining gas production and rising consumption. The policy would allow the country to retain foreign direct investment during a “critical transitional period”, said Hani Salem Sonbol, ICIEC’s acting chief executive. Apache is the largest US investor in Egypt and the largest producer of natural gas in the Western Desert, where it has been granted several concessions by the government. In December, Apache and Shell Egypt signed the first fracking contract in the country, a process that involves pumping water, sand and chemicals into a well to extract more oil or gas. The firm maintains about $1bn worth of political risk coverage for nationalisation, expropriation and currency inconvertibility. CORPORATE RESULTS DAMAC profit rises 11% in Q4, sees property price pause in 2015 Dubai developer DAMAC expects the emirate’s property sector to steady in 2015 before supply shortages boost prices in 2016-17, its chief executive said yesterday, after the company reported an 11% rise in fourth-quarter profit. Dubai house prices fell 49% from a peak in the third quarter of 2008 to the market bottom in the second quarter of 2009, according to consultants Cluttons, following a supply glut and the emirate’s debt crisis. Prices subsequently recovered as an influx of cash and people from troubled parts of the Middle East helped spark a rebound, although Cluttons estimates house prices remain about 18% below 2008 peaks. DAMAC made a profit of $249.8mn in the three months to December 31, according to Reuters calculations based on a company statement. This was up from $225.1mn a year earlier. DAMAC’s 2014 full-year profit was $937mn, up from $641.5mn, the company said in a filing to London’s bourse. “I see Dubai’s property marketing stabilising in 2015, but 2016-17 there could be some shortage in supply,” DAMAC chief executive Hussain Sajwani told Reuters. “After consolidating, we see the market nosing up.” The consensus view is for prices to fall slightly in 2015 as increased property sales taxes, stricter mortgage rules and a lack of affordability reverses market momentum. Sajwani said four developers now controlled 90% of Dubai’s property sector—DAMAC, plus governmentlinked trio Dubai Properties, Emaar Properties and Nakheel. “These are all long-established companies with strong cash flows and that is helping the market mature,” said Sajwani. DAMAC’s fourth-quarter revenue was $440.4mn versus $431.8mn a year earlier, Reuters calculations showed. The firm booked sales worth $3.1bn in 2014, up from $2.5bn in 2013. It delivered 3,553 units last year. “If you look at our balance sheet, cash flows and growth requirements, I don’t see a huge need for additional capital,” said Adil Taki, DAMAC chief financial officer. DAMAC’s value of properties under construction rose by 20% to $2.33bn at 2014-end, largely due to increases in its land bank. “I don’t expect we will buy a huge amount of land this year, although there will also always be some depending on location and availability,” added Sajwani. DAMAC will also de-list its global depository receipts (GDRs) from London by mid-March, having bought out 97.4% of holders. Shares in DAMAC, which joined Dubai’s main bourse in January, ended 6.8% higher. Dubai Financial Market Dubai Financial Market (DFM), the Gulf’s only listed stock exchange, reported a 31% rise in fourth-quarter net profit yesterday as trading volumes increased. The firm, which runs securities trading in Dubai, made a net profit of 138.2mn dirhams ($37.63mn) in the three months to December 31, up from a net profit of 105.4mn dirhams in the year-ago period, Reuters calculated using company figures. Global Investment House had forecast DFM would fourth-quarter net profit of 120mn dirhams. DFM’s full-year profit rose 167% to 759.3mn dirhams, it said in a statement. Trading commissions are the main source of income for DFM and daily trading activity rose to 639.5mn shares in 2014 from 510.7mn shares in 2013. DFM’s board has proposed paying a cash dividend of 7 fils per share for 2014, up from 5 fils per share in 2013. There are 100 fils in a dirham. Dubai’s government, which has a majority stake in DFM through holding company Borse Dubai, had been in protracted talks with neighbouring Abu Dhabi about merging the two emirates’ main exchanges. The planned merger had been shelved for the foreseeable future as terms for the politically sensitive move could not be agreed, sources told Reuters in July. Investcorp Alternative investment fund Investcorp posted a 5% rise in net income for the first half of its fiscal year, it said yesterday. The Bahrain-based company made a net income of $45.3mn in the six months to December, compared with $43.34mn a year earlier, the company said in a statement. It completed the $1.43bn sale of Berlin Packaging to Oak Hill Capital Partners in October, having bought a majority stake in the maker of rigid plastic, glass and metal containers in 2007. Founded in 1982, making it one of the oldest Middle Eastern private equity houses, Investcorp is best known in the global space for listing luxury goods brands, such as Gucci and Tiffany & Co, but has increasingly branched out into other sectors too. Yapi Kredi Bank Turkish lender Yapi Kredi yesterday announced a net profit of 1.84bn lira ($1.44bn) in 2014, in line with a Reuters poll forecasting the bank’s net at 1.805bn lira. Yapi Kredi’s loans and receivables rose to 122bn lira in 2014, it said in a results statement to the Istanbul stock exchange. The bank’s profit was 3.203bn in 2013. Gulf Times Tuesday, February 3, 2015 5 BUSINESS Saudi banks said to meet on Mobily debt after accounting errors Bloomberg Dubai Saudi Electricity Co will distribute 545mn riyals ($149mn) among its Saudi employees, it said in a bourse statement yesterday. The government owns 81% of the Gulf’s largest utility, according to Reuters data. Big Saudi firms to pay bonuses, imitating lavish royal handout Reuters Riyadh/Khobar S everal of Saudi Arabia’s largest listed companies said yesterday they would pay out hundreds of millions of dollars in bonuses, days after the new king ordered a handout to Saudi state employees to mark his accession. Saudi Arabia has sold minority stakes in big state firms and listed them on its bourse partly to expose them to market discipline. Yesterday’s announcements illustrated, before the market opens to direct foreign investment later this year, that the firms sometimes still act like government bodies. “I expect almost all Saudi listed and non-listed companies to make such payments, which will have a shortterm impact on their operating profitability,” said Shakeel Sarwar, head of asset management at Securities & Investment Co in Bahrain. “But the beneficiaries of these payouts will spend the money and that should help consumer stocks plus banks, which might see retail loans increase. Overall, this should benefit the economy.” Saudi Electricity Co will distribute 545mn riyals ($149mn) among its Saudi employees, it said in a bourse statement yesterday. Bonuses will not exceed 50,000 riyals per staff member. The government owns 81% of the Gulf’s largest utility, according to Reuters data. Saudi Telecom Co, 70% stateowned, will pay an extra 395mn riyals to its Saudi employees, it said in a similar filing, adding that the payout would be recorded in its first-quarter earnings. Saudi Basic Industries Corp (Sabic), the Gulf’s biggest list company and one of the world’s top petrochemical producers, will pay two months’ basic salary to Saudi employees and has recommended its subsidiaries and affiliates do likewise, according to an internal memorandum seen by Reuters and confirmed by an official source. Sabic’s units include Saudi Arabia Fertiliser Co, Saudi Kayan Petrochemical Co and Yanbu National Petrochemical Co. Southern Province Cement, major- ity-owned by state funds, revealed it would pay two months’ salary to Saudi employees, plus half a month’s pay to non-Saudis. Several of the country’s largest banks will also pay two-month bonuses, according to financial news website Argaam. The government owns major stakes in National Commercial Bank, Samba Financial Group and Riyad Bank, Reuters data shows. Last week, Saudi Arabia’s newly crowned King Salman ordered the immediate payment of two months of bonus salary to all state employees and pension to retired government workers, marking his accession after the death of his brother King Abdullah. Salman’s announcement did not give a monetary figure, but analysts said the payout to state employees could be worth some 70bn riyals, while additional handouts to pensioners, students and others could make total state spending much larger. Government handouts are a tradition in Saudi Arabia at times of political transition or tension. After uprisings in some other Arab countries in 2011, Abdullah announced tens of billions of dollars of new welfare spending, and some Saudi companies followed suit with their own handouts. “Saudi companies don’t pay income tax, so these occasional one-off payments can be construed as indirect taxes for the benefit of the overall society and population,” said Sarwar. Lenders to Etihad Etisalat Co are meeting to discuss the effects of the Saudi Arabian company’s accounting errors on 10bn riyals ($2.7bn) of loans, according to three people with knowledge of the matter. The group of seven local banks was set to get together at 4pm in Riyadh yesterday, the people said, asking not to be identified as the meeting is private. The lenders were to discuss whether loan covenants were breached because of the accounting errors, two people said. A spokesman for Etihad Etisalat, known as Mobily, didn’t respond to calls and an e-mail seeking comment. The company suspended chief executive officer Khalid Omar al-Kaf in November after revealing accounting errors that affected the financial statements for 2013 and 2014. The disclosure prompted the Saudi Arabian market regulator to begin a probe to determine if Mobily violated rules. Serkan Okandan, chief financial officer at UAE-based Emirates Telecommunications Corp, the largest shareholder in Mobily, is running operations at the Saudi telecoms company. Mobily reported a 2.3bnriyal loss for the fourth quarter after a 2bn-riyal profit a year earlier. The shares have slumped 56% in the past 12 months. Samba Financial Group, Banque Saudi Fransi, National Commercial Bank, Riyad Bank, Saudi British Bank, Al Rajhi Bank and Saudi Hollandi Bank signed the loan with Mobily two years ago, according to a statement at the time. Mobily reported a 2.3bn-riyal loss for the fourth quarter after a 2bn-riyal profit a year earlier Regulation, tight pricing overshadow Gulf’s capital-boosting bonds Reuters Dubai F ast-growing Gulf Arab banks plan to bolster their reserves by issuing capitalboosting bonds, but uncertainty over regulation and ultra-tight pricing increase the risks for issuers and investors. Basel III standards, now being phased in around the world, will require banks to hold more capital. While Gulf banks have very high capital adequacy ratios, their rapid expansion, and the fact they operate in emerging markets with lower sovereign ratings than the core developed economies, mean they will be hungry for more capital in coming years. The banking sector of the sixnation Gulf Cooperation Council (GCC) is expected to need an additional $35bn of capital by 2019, according to a study by consultants Strategy&. Retained earnings and equity issuance will provide some but not all of that money. So banks are turning to other instruments, especially perpetual bonds with equity-like characteristics that boost Tier 1, or core, capital. Contingent capital securities known as “CoCos”, convertible into shares in certain circumstances, may also be used. Kuwait’s Burgan Bank and Abu Dhabi’s Al Hilal Bank issued Tier 1 bonds designed to be Basel III-compliant last year. Dubai Islamic Bank (DIB), the UAE’ largest Islamic bank, sold $1bn of Tier 1 Islamic bonds last month at 6.75%. Qatar Islamic Bank, Qatar’s Doha Bank and Oman’s Bank Dhofar have all announced plans to issue Tier 1 bonds since the start of this year. Capital-boosting bonds are good options for banks in the region as they provide efficiency, flexibility and diversification, said Christoph Paul, head of Middle Eastern and North African capital markets at Morgan Stanley. But the trend to issue such bonds has been slower in the Gulf than in many other parts of the world, for a good reason: details of how national regulators will treat the instruments remain unclear in some countries. Saudi Arabia, a member of the committee which drafted Basel III, as well as Kuwait and Bahrain, have clarified what conditions the bonds must meet for their regulators to count them towards Tier 1 capital totals. The UAE, Qatar and Oman have not yet finalised their guidelines, however. This creates considerable uncertainty for the issuing banks - in theory, they could issue bonds only to discover months or years later that their national regulators do not recognise the instruments as capital-boosting. “We are in that limbo where everybody is trying to figure out what is required or not to issue capital instruments,” said a senior banker at a UAE lender, declining to be named because he was not authorised to speak to media. A key issue is loss absorption: unlike the previous Basel II regulatory regime, Basel III rules call for all capital instruments to absorb losses fully when a bank becomes non-viable, but leave it to national regulators to decide exactly how and when investors would shoulder the losses. GCC governments have in the past been very supportive of their banking systems - most of the big banks have large state shareholdings - so in some cases, banks seem to be assuming that their regulators would never take the inconvenient step of disallowing their Tier 1 bonds. But making such assumptions is not comfortable for some institutional investors, who tend to prefer legal and regulatory certainty. One risk is that an issuer, finding its outstanding bond was not Basel III-compliant, might decide to try to revise the terms - a strategy which India’s IDBI Bank adopted last year, angering investors. In these circumstances, the tight pricings being achieved by GCC issuers of Tier 1 bonds are remarkable, and not necessarily healthy. In developed markets, the pricing difference between Tier 1 bonds under Basel III and Basel II has been about 250 to 300 basis points, bankers said. DIB, however, achieved a tiny difference. A regional asset manager noted that $1bn of Tier 1 sukuk from DIB, callable in 2019, were issued under Basel II rules in 2013 at 6.25%. He calculated that represented a spread of only about 25 bps to the bank’s latest sukuk, taking into account the fact that DIB’s latest issue is not callable. Such a small spread may mean investors are not fully appreciating the much higher risk of loss embedded in the new Basel III structures. The willingness of some Gulf investors to shoulder this risk threatens to price international investors out of the market. “In reality, these new-style notes should pay a much higher premium since they don’t seek a rating and stand way behind existing subordinated bonds because of the loss absorption trigger,” said one senior Dubai banker. “Consequently, they would be wiped out before the old-style bonds in the event of bankruptcy, however unlikely this is.” Dubai Islamic Bank (DIB), the UAE’ largest Islamic bank, sold $1bn of Tier 1 Islamic bonds last month at 6.75% 6 Gulf Times Tuesday, February 3, 2015 BUSINESS SAUDI ARABIA Company Name QATAR Company Name Zad Holding Co Widam Food Co Vodafone Qatar United Development Co Salam International Investme Qatar & Oman Investment Co Qatar Navigation Qatar National Cement Co Qatar National Bank Qatar Islamic Insurance Qatar Industrial Manufactur Qatar International Islamic Qatari Investors Group Qatar Islamic Bank Qatar Gas Transport(Nakilat) Qatar General Insurance & Re Qatar German Co For Medical Qatar Fuel Co Qatar Electricity & Water Co Qatar Cinema & Film Distrib Qatar Insurance Co Ooredoo Qsc National Leasing Mazaya Qatar Real Estate Dev Mesaieed Petrochemical Holdi Al Meera Consumer Goods Co Medicare Group Mannai Corporation Qsc Masraf Al Rayan Al Khalij Commercial Bank Industries Qatar Islamic Holding Group Gulf Warehousing Company Gulf International Services Ezdan Holding Group Doha Insurance Co Doha Bank Qsc Dlala Holding Commercial Bank Of Qatar Qsc Barwa Real Estate Co Al Khaleej Takaful Group Aamal Co Lt Price 87.00 60.00 15.30 24.25 16.00 15.65 102.00 134.00 194.00 83.90 46.10 81.50 38.80 108.00 23.90 58.90 9.64 212.80 195.50 43.70 87.90 113.20 20.35 20.45 27.65 202.00 126.90 104.90 47.80 21.47 153.50 117.90 55.90 104.10 14.61 26.80 58.00 42.25 68.50 45.80 52.50 14.41 % Chg -0.57 -0.33 0.13 -0.94 -0.19 0.71 1.09 0.00 -2.02 1.57 -2.33 1.75 0.78 2.76 1.27 0.00 -0.21 0.33 1.56 0.00 -0.45 -1.57 1.45 0.20 1.10 -0.10 -0.47 0.67 3.91 -1.47 0.52 -2.96 0.00 0.87 -0.61 1.13 -0.17 -1.74 1.48 1.78 -0.94 -1.84 Volume 100 997 1,287,640 114,605 306,575 164,736 114,431 35,114 350,506 32,917 9,882 204,606 46,146 138,804 181,792 13,070 10,665 135,190 40,643 329,045 437,518 336,322 227,170 718 5,865 13,492 1,119,015 2,035 235,138 64,994 21,668 333,502 396,466 29,083 108,597 110,357 147,449 865,839 320,895 151,673 SAUDI ARABIA Company Name Saudi Hollandi Bank Al-Ahsa Development Co. Al-Baha Development & Invest Ace Arabia Cooperative Insur Allied Cooperative Insurance Arriyadh Development Company Fitaihi Holding Group Arabia Insurance Cooperative Al Abdullatif Industrial Inv Al-Ahlia Cooperative Insuran Al Alamiya Cooperative Insur Dar Al Arkan Real Estate Dev Al Babtain Power & Telecommu Bank Albilad Alujain Corporation (Alco) Aldrees Petroleum And Transp Fawaz Abdulaziz Alhokair & C Alinma Bank Alinma Tokio Marine Al Khaleej Training And Educ Abdullah A.M. Al-Khodari Son Allianz Saudi Fransi Coopera Almarai Co Saudi Integrated Telecom Co Alsorayai Group Al Tayyar Travel Group Amana Cooperative Insurance Anaam International Holding Abdullah Al Othaim Markets Arabian Pipes Co Advanced Petrochemicals Co Al Rajhi Co For Co-Operative Arabian Cement Arab National Bank Ash-Sharqiyah Development Co United Wire Factories Compan Astra Industrial Group Alahli Takaful Co Aseer Axa Cooperative Insurance Basic Chemical Industries Bishah Agriculture Bank Al-Jazira Banque Saudi Fransi United International Transpo Bupa Arabia For Cooperative Buruj Cooperative Insurance Saudi Airlines Catering Co Methanol Chemicals Co City Cement Co Eastern Province Cement Co Etihad Atheeb Telecommunicat Etihad Etisalat Co Emaar Economic City Saudi Enaya Cooperative Insu United Electronics Co Falcom Saudi Equity Etf Filing & Packing Materials M Wafrah For Industry And Deve Falcom Petrochemical Etf Gulf General Cooperative Ins Jazan Development Co Gulf Union Cooperative Insur Halwani Bros Co Hail Cement Herfy Food Services Co Al Jouf Agriculture Developm Jarir Marketing Co Jabal Omar Development Co Al Jouf Cement Saudi Kayan Petrochemical Co Knowledge Economic City Kingdom Holding Co Saudi Arabian Mining Co Malath Cooperative & Reinsur Makkah Construction & Devepl Mediterranean & Gulf Insuran Middle East Specialized Cabl Mohammad Al Mojil Group Co Mouwasat Medical Services Co The National Agriculture Dev Najran Cement Co Nama Chemicals Co National Gypsum National Gas & Industrializa National Industrialization C Maadaniyah National Shipping Co Of/The National Petrochemical Co Rabigh Refining And Petroche Al Qassim Agricultural Co Qassim Cement/The Red Sea Housing Services Co Saudi Research And Marketing Riyad Bank Al Rajhi Bank Saudi Arabian Amiantit Co Lt Price 46.60 17.01 13.50 64.30 26.20 23.34 24.14 19.96 37.45 15.74 95.25 10.41 37.73 49.68 23.07 58.28 108.81 23.08 51.59 67.67 33.84 44.69 84.68 24.30 18.10 142.92 15.88 32.97 116.23 21.33 48.94 45.31 80.05 34.03 87.17 38.57 36.86 52.77 28.65 38.73 37.81 69.75 28.38 35.03 79.83 168.84 41.68 194.38 14.04 23.53 61.28 7.97 38.65 15.10 30.52 103.43 31.70 55.30 41.44 28.60 31.75 16.62 20.42 92.03 26.46 116.45 46.93 209.08 57.84 16.62 12.40 20.45 18.47 38.09 34.51 84.74 55.64 25.97 12.55 127.64 39.19 30.23 13.00 30.19 32.88 27.87 36.47 38.35 25.80 20.07 13.98 94.25 41.97 19.10 18.00 58.97 14.59 % Chg -0.32 2.10 0.00 2.06 -0.83 1.00 0.71 3.21 2.13 2.01 -9.93 1.07 5.21 0.44 -0.09 1.09 9.08 1.27 1.56 0.73 3.36 0.00 -1.29 0.00 2.90 -0.83 -0.06 4.04 1.91 3.39 -0.77 0.18 -0.22 -0.50 0.84 3.74 3.13 1.09 2.87 0.36 -0.21 0.00 1.87 -0.79 0.34 -0.17 0.97 -0.04 8.42 0.73 0.39 3.64 3.26 -0.07 2.28 1.61 0.00 0.99 0.56 0.00 1.37 1.28 2.92 7.32 2.16 -0.38 0.17 2.49 -0.07 0.06 2.06 0.29 0.49 0.47 8.11 0.73 8.25 -0.99 0.00 -0.61 4.09 1.99 9.80 4.54 0.00 2.43 0.86 -0.98 0.62 1.67 4.10 0.53 1.97 -0.78 0.06 -0.32 2.24 Volume 189,437 6,833,587 665,730 858,328 1,665,061 458,004 1,267,153 349,379 1,909,723 217,165 92,801,619 989,826 706,309 1,981,957 624,933 2,385,324 44,685,310 617,031 119,144 4,142,063 450,082 462,876 1,015,262 252,178 1,369,832 1,965,877 244,589 3,594,396 2,175,188 546,178 284,942 882,858 1,148,622 1,417,022 1,852,435 473,002 1,097,889 854,801 173,958 4,853,178 600,325 382,497 87,662 194,926 80,624 10,534,800 1,046,470 240,355 16,394,784 14,386,702 3,709,099 1,399,610 145,530 2,416 1,311,584 831,693 1,189 705,227 1,090,966 1,433,576 324,921 286,431 76,113 390,167 311,954 1,020,072 3,092,754 20,902,221 2,791,157 2,159,728 6,770,747 13,633,083 92,925 2,959,964 4,208,246 61,363 2,383,932 331,534 5,790,039 747,289 121,451 4,079,907 1,287,350 861,015 1,456,212 4,944,477 3,825,150 85,108 316,094 1,350,066 1,067,668 3,010,833 4,217,935 Saudi British Bank Sabb Takaful Saudi Basic Industries Corp Saudi Cement Sasco Saudi Dairy & Foodstuff Co Saudi Arabian Fertilizer Co Al Sagr Co-Operative Insuran Saudi Advanced Industries Saudi Arabian Coop Ins Co Salama Cooperative Insurance Samba Financial Group Sanad Cooperative Insurance Saudi Public Transport Co Saudi Arabia Refineries Co Hsbc Amanah Saudi 20 Etf Saudi Re For Cooperative Rei Savola Saudi Cable Co Saudi Chemical Company Saudi Ceramic Saudi Electricity Co Saudi Fisheries Al-Hassan G.I. Shaker Co Dur Hospitality Co Arabian Shield Cooperative Saudi Investment Bank/The Saudi Industrial Development Saudi Industrial Export Co KUWAIT Lt Price 55.52 36.98 95.21 100.81 28.39 119.74 153.83 32.40 22.58 45.96 31.40 46.81 15.23 27.12 65.70 29.10 10.20 82.48 10.45 61.68 113.98 16.18 31.39 77.26 34.50 43.29 27.69 17.44 51.00 % Chg 0.04 1.34 2.66 0.83 0.89 -1.75 2.07 1.54 1.80 -0.95 3.80 -0.19 0.00 2.69 0.71 0.00 2.93 -0.91 2.25 0.44 0.83 0.81 7.76 0.80 3.26 0.67 -0.36 2.47 0.97 Volume 132,410 729,466 7,523,724 116,428 660,483 118,995 232,443 1,917,081 1,105,294 1,368,685 862,230 1,221,985 1,838,490 365,392 10 4,063,711 402,308 2,423,095 278,737 227,706 3,386,454 1,857,913 138,662 273,689 595,149 701,118 2,851,347 1,763,098 KUWAIT Company Name Viva Kuwait Telecom Co Securities Group Co Sultan Center Food Products Kuwait Foundry Co Sak Kuwait Financial Centre Sak Ajial Real Estate Entmt Gulf Glass Manuf Co -Kscc Kuwait Finance & Investment National Industries Co Kuwait Real Estate Holding C Securities House/The Boubyan Petrochemicals Co Al Ahli Bank Of Kuwait Ahli United Bank (Almutahed) National Bank Of Kuwait Commercial Bank Of Kuwait Kuwait International Bank Gulf Bank Al-Massaleh Real Estate Co Al Arabiya Real Estate Co Kuwait Remal Real Estate Co Alkout Industrial Projects C A’ayan Real Estate Co Investors Holding Group Co.K Markaz Real Estate Fund Al-Mazaya Holding Co Al-Madar Finance & Invt Co Gulf Petroleum Investment Mabanee Co Sakc City Group Inovest Co Bsc Kuwait Gypsum Manufacturing Al-Deera Holding Co Alshamel International Hold Mena Real Estate Co National Slaughter House Amar Finance & Leasing Co United Projects Group Kscc National Consumer Holding Co Amwal International Investme Jeeran Holdings Equipment Holding Co K.S.C.C Nafais Holding Safwan Trading & Contracting Arkan Al Kuwait Real Estate Gulf Finance House Ec Energy House Holding Co Kscc Kuwait Slaughter House Co Kuwait Co For Process Plant Al Maidan Dental Clinic Co K National Ranges Company Kuwait Pipes Indus & Oil Ser Al-Themar Real International Al Ahleia Insurance Co Sak Wethaq Takaful Insurance Co Salbookh Trading Co K.S.C.C Aqar Real Estate Investments Hayat Communications Kuwait Packing Materials Mfg Soor Fuel Marketing Co Ksc Alargan International Real Burgan Co For Well Drilling Kuwait Resorts Co Kscc Oula Fuel Marketing Co Palms Agro Production Co Ikarus Petroleum Industries Mubarrad Transport Co Al Mowasat Health Care Co Shuaiba Industrial Co Kuwait Invest Co Holding Hits Telecom Holding First Takaful Insurance Co Kuwaiti Syrian Holding Co National Cleaning Company Eyas For High & Technical Ed United Real Estate Company Agility Kuwait & Middle East Fin Inv Fujairah Cement Industries Livestock Transport & Tradng International Resorts Co National Industries Grp Hold Marine Services Co Warba Insurance Co Kuwait United Poultry Co First Dubai Real Estate Deve Al Arabi Group Holding Co Kuwait Hotels Co Mobile Telecommunications Co Al Safat Real Estate Co Tamdeen Real Estate Co Ksc Al Mudon Intl Real Estate Co Kuwait Cement Co Ksc Sharjah Cement & Indus Devel Kuwait Portland Cement Co Educational Holding Group Bahrain Kuwait Insurance Kuwait China Investment Co Kuwait Investment Co Burgan Bank Kuwait Projects Co Holdings Al Madina For Finance And In Kuwait Insurance Co Al Masaken Intl Real Estate Intl Financial Advisors First Investment Co Kscc Al Mal Investment Company Bayan Investment Co Kscc Egypt Kuwait Holding Co Sae Coast Investment Development Privatization Holding Compan Kuwait Medical Services Co Injazzat Real State Company Kuwait Cable Vision Sak Sanam Real Estate Co Kscc Ithmaar Bank Bsc Aviation Lease And Finance C Arzan Financial Group For Fi Ajwan Gulf Real Estate Co Manafae Investment Co Kuwait Business Town Real Es Future Kid Entertainment And Specialities Group Holding C Abyaar Real Eastate Developm Dar Al Thuraya Real Estate C Lt Price 700.00 118.00 91.00 325.00 114.00 206.00 560.00 68.00 212.00 33.50 86.00 590.00 400.00 640.00 900.00 620.00 265.00 300.00 77.00 45.00 73.00 0.00 99.00 33.00 1.54 132.00 22.00 91.00 990.00 460.00 65.00 170.00 12.50 0.00 39.50 152.00 67.00 760.00 0.00 31.50 59.00 110.00 88.00 0.00 130.00 23.50 114.00 206.00 248.00 0.00 33.00 0.00 90.00 495.00 60.00 142.00 0.00 68.00 450.00 138.00 184.00 168.00 91.00 140.00 130.00 150.00 75.00 0.00 255.00 0.00 31.50 0.00 0.00 67.00 310.00 99.00 790.00 38.00 79.00 130.00 38.50 194.00 110.00 116.00 180.00 74.00 158.00 0.00 540.00 23.00 450.00 112.00 375.00 89.00 1,360.00 150.00 0.00 50.00 140.00 460.00 690.00 31.00 290.00 70.00 40.00 0.00 35.00 65.00 200.00 60.00 57.00 85.00 69.00 33.00 62.00 48.50 238.00 48.00 36.50 65.00 36.00 0.00 134.00 32.00 0.00 % Chg -1.41 0.00 -2.15 1.56 1.79 0.00 9.80 7.94 2.91 -2.90 2.38 1.72 0.00 -1.54 0.00 0.00 1.92 -1.64 1.32 0.00 7.35 0.00 0.00 -2.94 0.00 1.54 -10.20 -1.09 0.00 4.55 0.00 0.00 0.00 0.00 1.28 0.00 0.00 0.00 0.00 0.00 -3.28 3.77 0.00 0.00 0.00 -2.08 1.79 0.00 -4.62 0.00 -2.94 0.00 0.00 2.06 -1.64 7.58 0.00 0.00 0.00 0.00 0.00 0.00 -1.09 0.00 0.00 4.17 -2.60 0.00 3.66 0.00 0.00 0.00 0.00 -1.47 0.00 0.00 -1.25 -2.56 0.00 -1.52 1.32 2.11 0.00 5.45 0.00 -1.33 0.00 0.00 0.00 -2.13 0.00 1.82 0.00 0.00 0.00 0.00 0.00 1.01 -1.41 0.00 -2.82 0.00 0.00 1.45 0.00 0.00 -1.41 -2.99 0.00 0.00 3.64 0.00 4.55 0.00 5.08 -2.02 0.00 0.00 1.39 6.56 1.41 0.00 3.08 -1.54 0.00 Volume 4,183,117 25 70,790 78,211 10 97,631 500 931,791 3,043 10,000 2,125,800 15,840 2,000 250,645 594,579 1,798 398,543 1,309,813 110 850,077 3,314,690 134,244 1,462,761 535,303 3,271,144 4,381,260 52,050 74,580 5,000 500 963,646 444,000 10 10,600 3,500 151,000 27,200 16,424,191 7,500 10 43,847,770 1,415,000 2,449 10,000 6,572,349 421,144 10 1,000 9,434,911 443,511 6,739 28,780 50,000 1,089 277,850 159,287 30,110 640,648 1,223,383 350,020 2,973,790 387,444 50 3,000 737,266 41,990 141,500 2,060 65,110 4,791,498 16 4,008 20,100 2,593,616 2,028 7,853,151 4,785,786 14,001 76,400 2 77,876 10,710 71 83,620 500 506,743 1,616,560 956,031 118,799 361,872 287,559 6,081,330 2,013,253 10,000 3,450,565 7,985,197 100 10 1,500 810 1,937,125 24,648 150,000 1,605,010 59,937 816,000 23,440 563,531 - Company Name Al-Dar National Real Estate Kgl Logistics Company Kscc Combined Group Contracting Zima Holding Co Ksc Qurain Holding Co Boubyan Intl Industries Hold Gulf Investment House Boubyan Bank K.S.C Ahli United Bank B.S.C Al-Safat Tec Holding Co Al-Eid Food Co Al-Qurain Petrochemicals Co Advanced Technology Co Ekttitab Holding Co S.A.K.C Kout Food Group Ksc Real Estate Trade Centers Co Acico Industries Co Kscc Kipco Asset Management Co National Petroleum Services Alimtiaz Investment Co Kscc Ras Al Khaimah White Cement Kuwait Reinsurance Co Ksc Kuwait & Gulf Link Transport Human Soft Holding Co Ksc Automated Systems Co Metal & Recycling Co Gulf Franchising Holding Co Al-Enma’a Real Estate Co National Mobile Telecommuni Al Bareeq Holding Co Kscc Union Real Estate Co Housing Finance Co Sak Al Salam Group Holding Co United Foodstuff Industries Al Aman Investment Company Mashaer Holdings Co Ksc Manazel Holding Mushrif Trading & Contractin Tijara And Real Estate Inves Kuwait Building Materials Jazeera Airways Commercial Real Estate Co Future Communications Co National International Co Taameer Real Estate Invest C Gulf Cement Co Heavy Engineering And Ship B Refrigeration Industries & S National Real Estate Co Al Safat Energy Holding Comp Kuwait National Cinema Co Danah Alsafat Foodstuff Co Independent Petroleum Group Kuwait Real Estate Co Ksc Salhia Real Estate Co Ksc Gulf Cable & Electrical Ind Al Nawadi Holding Co Ksc Kuwait Finance House Gulf North Africa Holding Co OMAN Lt Price 25.00 102.00 900.00 100.00 10.50 76.00 60.00 445.00 232.00 55.00 0.00 198.00 910.00 46.00 840.00 33.00 310.00 94.00 610.00 78.00 132.00 200.00 62.00 455.00 425.00 87.00 55.00 74.00 1,420.00 0.00 148.00 0.00 65.00 192.00 81.00 134.00 51.00 71.00 56.00 440.00 475.00 93.00 122.00 69.00 35.50 91.00 134.00 350.00 138.00 23.00 1,040.00 85.00 390.00 71.00 375.00 660.00 118.00 780.00 39.50 % Chg -1.96 -1.92 0.00 0.00 -8.70 7.04 -1.64 -1.11 -0.85 0.00 0.00 2.06 0.00 1.10 0.00 3.13 3.33 0.00 0.00 0.00 8.20 0.00 -1.59 0.00 0.00 3.57 1.85 0.00 1.43 0.00 0.00 0.00 -1.52 0.00 1.25 -4.29 -1.92 1.43 -1.75 0.00 1.06 1.09 1.67 2.99 -1.39 0.00 -1.47 0.00 -1.43 0.00 0.00 2.41 -1.27 0.00 0.00 0.00 0.00 0.00 -1.25 Volume 7,458,794 107,300 5,000 126,695 1,431,700 2,675,079 1,348,012 967,509 116,290 2,000 103,263 1,500 2,462,561 45,000 150 100 55,900 2,000 1,264,707 33,000 500 261,000 110 6,099 77,500 12 581,500 2,374 50 811,736 3,992 805,100 10,510 3,887,470 4,124,345 133,800 230 51,703 822,944 15,000 8,525,626 1,060,000 137,760 15 280 871,230 2,767,787 2,030,454 3,279,356 45,623 524,768 10 7,306 13,500 972,039 1,489,999 OMAN Company Name Voltamp Energy Saog United Finance Co United Power Co United Power/Energy Co- Pref Al Madina Investment Co Taageer Finance Salalah Port Services A’saffa Foods Saog Sohar Poultry Shell Oman Marketing Shell Oman Marketing - Pref Smn Power Holding Saog Al Shurooq Inv Ser Al Sharqiya Invest Holding Sohar Power Co Salalah Beach Resort Saog Salalah Mills Co Sahara Hospitality Renaissance Services Saog Raysut Cement Co Port Service Corporation Packaging Co Ltd Oman United Insurance Co Oman Textile Holding Co Saog Oman Telecommunications Co Sweets Of Oman Oman Orix Leasing Co. Oman Refreshment Co Oman Packaging Oman Oil Marketing Company 0Man Oil Marketing Co-Pref Oman National Investment Co Oman National Engineering An Oman National Dairy Products Ominvest Oman Medical Projects Oman Ceramic Com Oman Intl Marketing Oman Investment & Finance Hsbc Bank Oman Oman Hotels & Tourism Co Oman Holding International Oman Fiber Optics Oman Flour Mills Oman Filters Industry Oman Fisheries Co Oman Education & Training In Oman & Emirates Inv(Om)50% Oman & Emirates Inv(Emir)50% Oman Europe Foods Industries Oman Cement Co Oman Chlorine Oman Chromite Oman Cables Industry Oman Agricultural Dev Omani Qatari Telecommunicati National Securities Oman Foods International Soa National Pharmaceutical-Rts National Pharmaceutical National Packaging Fac National Mineral Water National Hospitality Institu National Gas Co National Finance Co National Detergents/The National Carpet Factory National Bank Of Oman Saog National Biscuit Industries National Real Estate Develop Natl Aluminium Products Muscat Thread Mills Co Muscat Insurance Company Modern Poultry Farms Muscat National Holding Musandam Marketing & Invest Al Maha Petroleum Products M Muscat Gases Company Saog Majan Glass Company Muscat Finance Al Kamil Power Co Interior Hotels Hotels Management Co Interna Al-Hassan Engineering Co Gulf Stone Gulf Mushroom Company Gulf Invest. Serv. Pref-Shar Gulf Investments Services Gulf International Chemicals Gulf Hotels (Oman) Co Ltd Global Fin Investment Galfar Engineering&Contract Galfar Engineering -Prefer Financial Services Co. Flexible Ind Packages Lt Price 0.40 0.15 1.82 1.00 0.00 0.15 0.65 0.78 0.21 2.00 1.05 0.66 1.04 0.18 0.38 1.38 1.49 2.45 0.47 1.86 0.32 0.48 0.32 0.27 1.75 1.35 0.15 2.45 0.26 2.22 0.25 0.39 0.30 0.00 0.43 0.00 0.45 0.52 0.24 0.00 0.23 0.00 5.51 0.58 0.00 0.07 0.14 0.13 0.00 1.00 0.51 0.56 3.64 2.01 1.45 0.00 0.17 0.52 0.00 0.10 0.00 0.06 2.05 0.56 0.15 0.70 0.00 0.36 3.75 0.00 0.34 0.16 0.00 0.00 1.86 0.00 2.16 0.83 0.24 0.15 0.31 0.00 1.25 0.12 0.08 0.43 0.15 0.16 0.20 10.50 0.11 0.17 0.43 0.16 0.00 % Chg 0.00 -2.56 0.00 0.00 0.00 0.00 0.00 1.03 0.00 0.00 0.00 0.00 0.00 -0.55 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.62 0.00 -0.57 0.00 0.00 0.00 0.00 0.00 0.00 0.51 0.00 0.00 0.00 0.00 0.00 0.00 -1.67 0.00 0.00 0.00 0.00 0.00 0.00 -1.45 0.00 -0.78 0.00 0.00 1.59 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -2.77 0.00 0.00 0.00 0.55 0.00 0.00 3.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.65 0.00 0.00 0.00 0.00 0.00 0.00 -0.87 -0.59 0.00 0.00 0.00 Volume 3,000 138,100 100 50,000 100,361 75,760 102,000 355,500 225,826 4,500 65,525 89,771 324,540 6,000 167,364 7,610 3,968 18,686 416,806 12,200 262 2,500 469,252 1,843,742 133,356 3,056,510 74,700 - Company Name Financial Corp/The Dhofar Tourism Dhofar Poultry Aloula Co Dhofar Intl Development Dhofar Insurance Dhofar University Dhofar Power Co Dhofar Power Co-Pfd Dhofar Fisheries & Food Indu Dhofar Cattlefeed Al Batinah Dev & Inv Dhofar Beverages Co Computer Stationery Inds Construction Materials Ind Cement & Gypsum Pro Marine Bander Al-Rowdha Bank Sohar Bankmuscat Saog Bank Dhofar Saog Al Batinah Hotels Majan College Areej Vegetable Oils Al Jazeera Steel Products Co Al Sallan Food Industry Acwa Power Barka Saog Al-Omaniya Financial Service Taghleef Industries Saog Gulf Plastic Industries Co Al Jazeera Services Al Jazerah Services -Pfd Al-Fajar Al-Alamia Co Ahli Bank Abrasives Manufacturing Co S Al-Batinah Intl Saog Lt Price 0.13 0.49 0.18 0.53 0.53 0.23 1.47 0.00 0.00 1.28 0.18 0.20 0.26 0.25 0.04 0.00 0.00 0.23 0.61 0.35 1.13 0.50 5.51 0.34 0.00 0.82 0.33 0.00 0.39 0.34 0.55 0.75 0.22 0.05 0.00 % Chg 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1.47 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Volume 157,305 43,092 39,832 600,407 5,000 9,700 487,633 - UAE Company Name National Takaful Company Waha Capital Pjsc Union Insurance Co Union National Bank/Abu Dhab United Insurance Company Union Cement Co United Arab Bank Abu Dhabi National Takaful C Abu Dhabi National Energy Co #N/A Invalid Security Sorouh Real Estate Company Sharjah Insurance Company Sharjah Cement & Indus Devel Ras Al Khaima Poultry Ras Al Khaimah White Cement Rak Properties Ras Al-Khaimah National Insu Ras Al Khaimah Ceramics Ras Al Khaimah Cement Co National Bank Of Ras Al-Khai Ooredoo Qsc Umm Al Qaiwain Cement Indust Oman & Emirates Inv(Emir)50% National Marine Dredging Co National Corp Tourism & Hote Sharjah Islamic Bank National Bank Of Umm Al Qaiw National Bank Of Fujairah National Bank Of Abu Dhabi Methaq Takaful Insurance #N/A Invalid Security Gulf Pharmaceutical Ind-Julp Invest Bank Insurance House Gulf Medical Projects Gulf Livestock Co Green Crescent Insurance Co Gulf Cement Co Foodco Holding Finance House First Gulf Bank Fujairah Cement Industries Fujairah Building Industries Emirates Telecom Corporation Eshraq Properties Co Pjsc Emirates Insurance Co. (Psc) Emirates Driving Company Al Dhafra Insurance Co. P.S. Dana Gas Commercial Bank Internationa Bank Of Sharjah Abu Dhabi Natl Co For Buildi Al Wathba National Insurance Intl Fish Farming Co Pjsc Arkan Building Materials Co Aldar Properties Pjsc Al Ain Ahlia Ins. Co. Al Khazna Insurance Co Agthia Group Pjsc Al Fujairah National Insuran Abu Dhabi Ship Building Co Abu Dhabi National Insurance Abu Dhabi National Hotels Abu Dhabi Islamic Bank Abu Dhabi Commercial Bank Abu Dhabi Aviation Lt Price 0.82 3.11 1.19 5.76 2.00 1.30 7.00 7.24 0.80 0.00 0.00 3.85 1.20 1.27 1.50 0.75 3.80 2.95 0.96 8.00 143.50 1.23 1.17 6.90 6.30 1.83 3.50 4.85 13.35 0.74 0.00 3.19 3.00 1.00 2.00 2.70 0.72 1.10 4.00 3.45 17.25 1.35 1.45 11.10 0.79 7.00 5.00 7.70 0.47 1.75 1.86 0.78 5.35 7.48 1.10 2.48 60.00 0.40 6.09 300.00 1.73 6.08 3.75 5.25 7.18 3.00 % Chg 3.80 0.00 0.00 0.17 0.00 0.00 4.48 0.00 2.56 0.00 0.00 0.00 0.00 0.00 0.00 -1.32 0.00 -1.67 0.00 -4.19 0.00 0.00 0.00 0.00 0.00 1.67 0.00 0.00 -0.37 1.37 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.29 -1.43 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.17 0.00 -4.62 0.00 0.00 0.00 0.00 -0.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1.87 0.56 0.00 Volume 12,954 14,482,204 58,001 8,312 2,709,060 11,782,103 6,885 2,000,110 63,604 4,000 875,000 309,387 499,386 40,145 797,714 1,571,133 31,449,305 80,800 8,492,698 147,002 9,000 9,520,840 229,100 5,000 796,623 529,301 - BAHRAIN Company Name United Paper Industries Bsc United Gulf Investment Corp United Gulf Bank United Finance Co Trafco Group Bsc Takaful International Co Taib Bank -$Us Securities & Investment Co Seef Properties #N/A Invalid Security Al-Salam Bank Delmon Poultry Co National Hotels Co National Bank Of Bahrain Nass Corp Bsc Khaleeji Commercial Bank Ithmaar Bank Bsc Investcorp Bank -$Us Inovest Co Bsc Intl Investment Group-Kuwait Gulf Monetary Group Global Investment House Kpsc Gulf Finance House Ec Bahrain Family Leisure Co Esterad Investment Co B.S.C. Bahrain Duty Free Complex Bahrain Car Park Co Bahrain Cinema Co Bahrain Tourism Co Bahraini Saudi Bank/The Bahrain National Holding Bankmuscat Saog Bmmi Bsc Bmb Investment Bank Bahrain Kuwait Insurance Bahrain Islamic Bank Gulf Hotel Group B.S.C Bahrain Flour Mills Co Bahrain Commercial Facilitie Bbk Bsc Bahrain Telecom Co Bahrain Ship Repair & Engin Albaraka Banking Group Banader Hotels Co Ahli United Bank B.S.C Lt Price 0.00 0.00 0.00 0.00 0.22 0.00 0.00 0.00 0.19 0.00 0.13 0.00 0.00 0.85 0.18 0.05 0.16 451.60 0.00 0.00 0.00 0.00 0.00 0.12 0.22 0.88 ` 1.54 0.24 0.00 0.48 0.00 0.88 0.00 0.00 0.15 0.85 0.00 0.00 0.00 0.33 0.00 0.81 0.00 0.80 % Chg 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7.44 0.00 0.00 0.00 0.00 2.22 -5.88 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.27 Volume 25,097 54,950 33,076 10,000 10,000 273,807 625,000 10 27,934 6,000 102,460 10,000 5,200 82,534 12,016 1,882 9,093 18,295 15,000 LATEST MARKET CLOSING FIGURES Gulf Times Tuesday, February 3, 2015 7 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 Visa Inc-Class A Shares Walt Disney Co/The Intl Business Machines Corp Home Depot Inc Cisco Systems Inc United Technologies Corp 3M Co 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 88.67 40.60 100.04 84.84 24.04 84.39 54.68 31.29 104.09 46.40 41.14 60.14 33.33 33.19 253.00 90.84 152.80 102.58 26.32 115.31 162.28 144.68 105.81 92.29 81.45 91.82 173.44 71.07 80.49 102.86 % Chg 1.43 0.48 -0.10 -0.16 0.63 0.12 0.54 0.11 1.52 1.51 -0.07 -0.23 1.23 0.45 -0.75 -0.13 -0.33 -1.76 -0.17 0.46 -0.01 -0.47 -0.41 -0.16 0.94 -0.47 0.60 -0.20 0.65 0.04 6,612,243 16,660,787 2,532,442 2,163,477 10,518,452 2,591,776 6,510,245 6,659,823 3,696,355 6,113,341 4,256,023 2,287,649 11,406,705 13,961,599 1,305,054 2,988,737 1,316,524 1,858,939 9,017,291 807,768 588,933 2,457,866 1,097,420 2,234,907 1,548,506 1,018,036 1,036,718 1,047,055 2,033,245 521,775 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 1,453.00 3,765.00 182.10 4,979.00 1,738.00 232.60 998.00 2,906.00 400.00 1,137.00 1,166.00 1,913.00 227.10 133.00 398.60 878.30 865.50 1,615.00 718.00 1,134.00 1,178.00 924.00 4,884.00 2,101.00 2,895.00 266.50 475.80 3,612.50 450.00 438.80 2,168.50 2,069.00 363.50 882.00 2,962.50 1,151.00 5,625.00 5,595.00 1,606.00 1,570.00 1,357.00 209.10 7,155.00 933.20 1,186.00 542.00 477.00 2,333.00 73.49 266.10 1,287.00 334.10 3,266.00 220.80 367.60 527.50 2,281.00 2,601.00 3,126.00 611.30 994.50 695.00 253.10 1,459.50 370.10 279.40 398.10 884.00 1,167.00 1,734.00 428.50 311.30 1,939.00 1,700.00 1,153.00 1,067.00 292.20 2,915.00 1,112.00 1,743.00 1,880.00 412.00 836.00 3,751.00 436.70 1,484.50 927.50 457.40 235.25 506.50 1,008.00 527.00 4,677.50 3,104.00 1,055.00 1,036.00 671.50 1,124.00 1,600.00 1,456.00 437.80 463.30 % Chg -0.89 -2.51 1.22 -0.52 3.45 -0.81 -2.82 -0.82 9.59 -0.96 -0.93 -0.47 1.05 -1.77 -1.09 -1.06 0.87 0.37 0.91 0.62 -1.09 -0.43 0.62 -2.37 -0.10 4.35 -0.92 -0.36 -0.95 0.87 3.04 2.53 0.30 -1.07 1.28 -0.43 -0.09 -1.58 -0.86 -1.38 0.44 0.43 -1.11 -0.25 -0.25 0.56 -1.53 -1.35 -0.35 -0.67 1.02 -2.54 0.15 0.36 0.71 -3.12 -0.52 -2.29 0.06 0.28 -1.63 0.94 1.69 -0.51 0.41 -2.03 -0.08 -1.67 -0.51 -6.87 -1.49 -0.38 -1.57 6.05 0.17 -0.37 -0.54 -2.74 -0.54 0.81 -0.90 -1.41 0.78 -0.03 2.89 2.88 4.58 -0.22 0.47 -0.20 0.20 -0.19 -1.38 0.03 -3.03 -0.48 3.31 0.99 2.96 0.55 0.02 0.87 Volume 1,551,001 924,472 9,857,809 370,456 1,901,514 31,408,473 1,408,081 2,458,247 9,851,680 2,573,316 1,157,644 386,485 17,691,908 9,650,387 2,996,727 9,287,245 765,756 2,165,050 745,834 459,043 1,721,148 1,787,191 1,402,311 533,114 223,517 8,895,506 1,701,306 1,795,184 3,712,222 1,646,418 4,406,594 6,274,068 6,291,154 5,485,926 4,008,344 2,464,786 1,136,539 412,639 1,832,032 857,852 4,186,456 5,721,627 421,140 4,597,688 897,822 2,076,073 2,836,165 507,680 96,457,763 5,003,988 828,752 6,649,148 301,504 7,143,243 875,216 12,255,935 1,774,897 286,269 1,432,910 18,456,506 880,510 1,267,830 25,278,480 5,141,521 1,935,055 2,177,519 5,619,872 736,881 1,370,457 3,001,054 3,801,837 2,528,079 3,637,012 11,241,125 2,972,644 456,821 11,154,814 828,545 946,172 941,548 287,974 9,125,133 1,418,068 1,630,133 37,640,457 6,875,787 14,648,404 3,031,765 28,306,753 6,273,579 691,204 11,462,720 2,350,761 332,249 2,727,955 1,705,913 4,205,817 3,542,812 1,037,774 687,984 1,794,017 899,490 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 1,292.50 2,167.00 1,506.50 1,585.00 3,210.00 4,315.50 1,016.50 1,195.00 509.00 7,846.00 614.30 5,149.00 5,888.00 1,852.00 6,116.00 1,749.50 3,920.00 1,796.50 438.20 % Chg -0.88 -0.89 -1.28 -0.31 -0.70 -0.51 0.69 1.96 8.76 -0.03 0.03 -0.62 -0.25 1.23 3.87 2.13 -1.95 -5.35 0.55 Indices Volume Volume 5,310,800 1,274,700 3,808,500 2,202,700 4,530,200 2,014,300 7,774,000 5,135,000 23,009,000 905,000 6,991,000 1,861,400 2,538,400 6,947,100 4,876,400 4,819,100 2,691,300 3,636,000 11,242,800 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 17,175.09 1,998.13 4,632.00 14,773.21 40,950.58 47,319.24 6,765.41 4,619.79 10,782.70 10,296.30 +10.14 +3.14 -3.24 +99.73 -911.75 +411.56 +16.01 +15.54 +88.38 -107.00 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 17,558.04 1,408.75 24,484.74 5,586.53 1,156.95 29,122.27 8,797.40 3,423.35 24,880.76 5,276.24 -116.35 -6.32 -22.31 +34.95 +1.98 -60.68 -11.50 +32.15 +150.50 -13.17 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 4,632.50 625.00 277.50 0.00 205.00 2,544.50 1,705.00 1,530.00 31,685.00 2,324.00 1,741.50 8,216.00 877.00 468.20 1,384.00 8,089.00 325.00 685.90 1,347.50 232.00 2,698.50 7,830.00 55,980.00 5,251.00 19,920.00 7,550.00 5,169.00 13,035.00 7,450.00 657.90 1,014.00 7,660.00 3,699.50 3,723.00 1,487.00 4,666.50 3,712.50 1,119.50 1,060.00 11,445.00 1,198.50 657.20 1,520.00 8,130.00 1,175.00 2,064.50 1,244.50 625.00 581.70 413.20 3,947.50 628.70 192.40 1,345.00 844.00 631.40 3,246.00 2,856.00 1,545.00 4,070.00 1,308.50 3,008.50 2,376.00 3,784.50 9,373.00 6,386.00 20,175.00 320.70 6,957.00 8,054.00 1,977.00 482.00 1,498.50 1,064.00 1,488.00 1,087.00 720.90 6,848.00 438.00 43,055.00 7,031.00 % Chg -2.23 -0.79 0.00 0.00 -1.44 -2.57 0.41 0.00 -0.58 -0.34 -1.25 -0.71 -2.26 -1.35 0.54 0.19 -2.69 9.64 -0.33 0.00 -2.72 5.67 0.88 0.00 0.15 -1.31 -1.05 1.68 5.15 0.43 -0.25 0.20 3.31 -0.88 -1.13 1.47 -0.75 -3.24 -0.52 0.13 -0.13 0.57 0.86 -4.08 0.60 -0.17 -0.40 -1.15 -1.14 -0.79 -1.08 -1.73 -0.82 -1.61 -2.14 -0.49 -1.64 -1.16 -3.07 -1.69 -2.31 0.27 -0.31 -0.01 2.66 5.07 -0.71 -1.69 -0.90 -3.69 -1.40 -3.98 -4.07 -6.91 -0.27 -4.90 2.07 -0.38 -0.45 -2.19 0.98 Volume 3,918,400 3,876,000 38,992,000 24,899,000 3,879,500 2,643,000 3,658,700 161,600 4,363,500 3,310,000 915,300 20,707,000 18,145,000 11,486,000 949,200 32,703,000 38,089,000 7,288,500 15,914,000 8,475,500 2,186,100 146,200 1,643,800 968,000 553,100 1,126,100 957,200 2,384,300 13,811,000 9,687,800 7,932,900 9,857,300 1,103,100 3,278,300 2,040,100 3,519,600 9,670,200 1,242,000 704,000 5,938,100 9,278,600 7,875,500 642,500 4,756,500 4,874,000 3,621,400 41,489,300 8,317,200 22,393,000 8,223,800 3,364,000 140,615,800 11,201,800 11,695,000 17,739,200 2,156,600 1,141,400 4,735,400 2,232,800 2,069,000 4,158,000 5,624,000 2,111,000 1,203,900 1,482,600 516,000 18,688,000 2,179,900 2,875,600 5,161,900 40,353,100 5,450,300 4,363,900 1,682,500 3,092,500 9,090,000 433,500 5,038,700 430,700 6,233,400 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 371.75 625.10 3,087.05 2,895.05 383.85 91.15 592.50 2,514.20 929.10 307.50 198.20 908.05 191.80 147.85 349.85 142.05 141.35 3,669.45 1,241.20 1,554.70 1,735.10 1,352.35 154.75 360.65 2,136.85 874.55 176.25 351.85 1,269.30 908.00 145.25 2,833.20 1,081.60 1,891.00 3,808.30 430.00 3,139.10 172.95 355.10 695.50 235.70 359.30 748.65 293.85 187.85 2,349.30 617.30 808.10 249.25 1,524.95 % Chg -1.33 3.06 -1.70 0.93 -1.69 0.72 1.26 1.30 1.24 -0.47 -1.86 -0.79 1.13 -0.10 -0.43 -1.11 -0.11 0.61 -1.89 -1.93 2.03 2.28 -2.46 -2.14 -0.24 0.50 2.44 -2.45 0.54 -2.63 3.97 -1.13 0.39 5.54 -1.95 1.65 -2.91 1.80 -1.59 -0.04 1.22 -3.85 -0.03 0.72 -2.74 -1.77 4.97 -5.79 0.20 -2.27 Volume 1,320,196 3,235,752 266,649 2,165,326 3,874,397 5,872,060 4,590,291 1,641,747 1,870,896 19,518,744 3,918,638 5,257,677 5,917,383 1,483,989 2,718,946 8,848,791 1,671,638 357,553 790,695 603,527 1,586,116 1,783,566 3,335,061 5,948,164 2,240,118 731,296 15,122,073 35,290,875 3,319,110 1,920,898 8,394,371 321,326 1,557,329 2,684,269 67,969 1,654,349 414,998 8,337,720 33,733,907 1,021,853 2,495,225 4,011,715 1,793,746 3,217,950 11,069,789 468,728 7,052,864 5,274,754 888,412 262,201 A Ryanair jet taxies at Dublin Airport in Ireland (file). Shares in Ryanair slid 6.01% to €9.78 yesterday as the no-frills Irish airline gave a cautious outlook after swinging into profit during its third quarter. Europe markets gain as Greece talks debt AFP London E urope’s main stock markets closed higher yesterday as Greece’s new anti-austerity government sought support for a renegotiation of the country’s €240bn ($270bn) bailout in the face of German opposition. Greek stocks ended the day up 4.6%, after Greek Finance Minister Yanis Varoufakis met his British counterpart the latest stop on his European charm offensive. US President Barack Obama, who yesterday put forward a $4.0tn budget loaded with spending and tax reforms, warned the world that continued imposition of tough austerity programmes on Greece could backfire on its creditors. “You cannot keep on squeezing countries that are in the midst of depression,” Obama told CNN. “At some point, there has to be a growth strategy in order for them to pay off their debts to eliminate some of their deficits.” European stocks fared well yesterday as investors appeared to await specific developments in the Greek diplomatic dance. London’s benchmark FTSE 100 index gained 0.49% to 6,6782.55 points at close. Frankfurt’s DAX 30 index rose 1.25% to a record 10,828.01 points at the final bell, while in Paris the CAC 40 edged up 0.51% to stand at 4,627.67 compared with Friday’s close. ING Debt Strategy and Research warned in a note: “Despite the rhetoric that Greece is a contained situation... the fledgling Syriza-led coalition government is still causing ripples across financial markets and will probably continue to do so until we have clarity on the debt renegotiation tactics of (Prime Minister) Alexis Tsipras.” The euro increased to $1.1334 from $1.1284 late in New York on Friday. Wall Street stocks dropped in early trade yesterday following a weak report on Chinese manufacturing ahead of a busy week of US data. About 35 minutes into trade, the Dow Jones Industrial Average was at 17,090.35, down 75.60 points (0.43%). 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 The broad-based S&P 500 fell 7.99 (0.40%) to 1,987.00, while the techrich Nasdaq Composite Index tumbled 42.56 (0.92%) to 4,592.68. In corporate movement yesterday, shares in Ryanair slid 6.01% to €9.78 as the no-frills Irish airline gave a cautious outlook after swinging into profit during its third quarter. Ryanair said its profit growth expectations were “modest” for next year as its expects rivals to cut fares because of cheaper oil prices. “It is important that analysts are mindful of this likely increased price competition when revising their forecasts,” chief executive Michael O’Leary said in the statement. The oil market has lost more than half its value since June last year when the commodity was sitting at more than $100 a barrel, largely owing to a surge in global reserves boosted by robust US shale oil production. The problem was exacerbated in November after the Opec oil cartel insisted that it would maintain output levels despite plunging prices. The 12-nation group pumps about 30% of global crude. Lt Price 3.47 32.20 4.29 6.46 8.73 27.45 17.98 149.60 4.16 6.16 29.90 28.50 103.90 22.80 6.07 16.80 19.64 21.60 21.15 11.74 13.30 69.00 10.28 11.16 8.66 3.50 22.85 136.40 56.50 % Chg -2.53 0.00 -1.15 -0.92 -0.68 0.73 -0.66 0.74 -2.58 -1.12 -2.29 -0.18 1.37 1.56 -0.98 -1.18 -1.21 -1.37 -0.47 0.17 -0.15 -0.29 0.98 -0.89 -1.03 1.16 0.00 0.44 1.99 Volume 30,509,261 1,703,929 269,594,818 25,355,818 13,984,262 16,351,070 2,005,100 8,700,666 21,566,313 309,680,205 46,627,596 2,470,596 16,091,915 16,558,683 101,514,100 2,610,008 13,131,115 5,554,706 9,780,696 29,083,556 10,022,792 3,203,078 57,554,093 4,454,346 4,830,000 9,863,675 4,421,597 1,183,108 4,986,923 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 17.82 179.10 71.25 104.70 5.50 7.53 34.00 9.30 8.44 80.70 81.75 13.14 127.40 104.50 135.80 62.80 % Chg 0.11 0.28 -1.66 1.75 -1.43 -2.08 -1.31 0.43 0.60 -2.30 0.55 1.08 0.63 0.38 2.88 -0.32 Volume 4,925,283 3,329,960 20,395,461 9,709,547 295,443,914 22,400,572 4,515,930 36,669,920 65,676,767 26,025,592 3,064,298 7,169,720 4,881,537 836,382 17,654,028 3,391,553 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 12,117.70 9,213.15 6,653.59 1,422.75 6,573.67 4,526.46 3,799.18 Change +55.60 +69.21 +16.88 +5.04 +1.44 -26.15 -41.04 “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 Tuesday, February 3, 2015 13 BUSINESS GM confirms Indonesia factory plan with SAIC Reuters Shanghai G eneral Motors said yesterday that one of its Chinese ventures plans to establish manufacturing operations in Indonesia to take advantage of growth in Southeast Asia’s biggest vehicle market. Confirming a Reuters report published on Saturday, the US carmaker said SAIC-GM-Wuling (SGMW), a joint venture between GM China, SAIC Motor Corp Ltd and Wuling Motors, is planning to establish a manufacturing facility near Jakarta to build Wuling brand vehicles. Construction of the facility is planned to begin this year, subject to government approval, GM said in a statement posted on its website. The vehicles will be sold primarily in Indonesia, with plans to potentially export them to other regional markets, it said. Sources told Reuters that GM and SAIC would make a joint push into Indonesia, using their no-frills Wuling brand to establish a beachhead in Southeast Asia’s biggest market and from there tackle other markets in the region. In a report late on Friday, officials from Indonesia’s industry ministry told state Antara news agency that GM and SAIC would invest $700mn in Indonesia to build vehicles. The GM statement did not provide the size of the planned investment. An official at Wuling confirmed the venture’s plan to build a factory in Indonesia. SAIC could not be reached for comment. General Motors said yesterday that one of its Chinese ventures plans to establish manufacturing operations in Indonesia to take advantage of growth in Southeast Asia’s biggest vehicle market. China holds some hope for LNG producers By Clyde Russell Launceston, Australia Can China ride to the rescue of producers of liquefied natural gas (LNG), who are bringing on stream ever more supply at a time when prices in Asia have sunk to 4-1/2 year lows? The world’s largest commodity consumer has taken some of the blame for the plunge in the spot price, which dropped to $7.20 per million British thermal units (mmBtu) last week, the lowest since July 2010 and down almost 65% from the same time last year. To be sure, a warmer than usual winter in North Asia and a wellsupplied market are also major culprits in LNG’s weakness. But China’s demand growth in 2014 didn’t come anywhere near to meeting expectations. LNG imports rose 10.3% to 19.85mn tonnes last year, a pace of growth that was less than half of what was achieved in 2013. Slower economic growth and higher natural gas prices crimped demand for the cleaner-burning fuel, even as China tried to limit the use of coal in a bid to lower pollution. China’s natural gas demand grew by 5.6% last year to 178.6bn cubic metres (bcm), which is less than half the average annual growth rate of 11.7% between 1995 and 2009. Of that demand, 127.9 bcm was produced domestically, while 57.8 bcm was imported by pipeline or as LNG. The split between the two was in favour of pipeline, but not by too large a margin, with LNG imports amounting to almost 27 bcm. There is little doubt that China’s natural gas demand can return to double-digit growth figures, but much will depend on the actions of policymakers. The authorities will have to continue a policy of trying to shift away from coal, and in doing so will have to actively encourage the use of natural gas. In practical terms this means that they will have to reverse last year’s price increases for natural gas, to allow the dramatic fall in LNG prices to be felt by both industrial and residential consumers. The price hike in September last year raised the natural gas price in Tier 1 users to $10.70 per mmBtu and $12.80 for Tier 2, according to calculations by consultants FGE. The two-tier system of pricing is scheduled to be scrapped this year, proving policymakers with a ready- made opportunity to lower natural gas prices in order to boost demand. This will be essential if China is to meet its target of increasing natural gas use to 400 bcm per year by 2020, which would be more than double last year’s consumption. The sharp fall in LNG prices may help make the super-chilled fuel more viable against pipeline imports from other countries. The problem for LNG has always been that it was too expensive compared to alternatives, but the tables appear to have turned. China buys much of its pipeline gas on oil-linked contracts, which means prices are currently falling given crude has more than halved since June last year. This doesn’t sound positive for LNG, but it may be insofar as it makes future pipeline projects considerably less viable. The massive 38 bcm a year deal between China and Russia, signed last year, and due to start in 2018 may be a case in point. While pricing for the deal was never publicly revealed, it was believed to be about the equivalent of $10 per mmBtu, delivered at the Chinese border. With oil-linked pricing, this may have dropped to around $8 per mmBtu. Add to this the cost of transporting the gas from the border in the northwest to the main markets in the northeast, and the price will be closer to $12 per mmBtu. This is well below the current spot price of LNG, meaning there is the potential for LNG to take market share from pipeline gas. Additionally there is the increasing likelihood that some of the planned pipeline additions from Russia and Central Asia to China won’t be built, or will be delayed, given the deterioration in the economics. This gives LNG producers a chance to increase their penetration of the Chinese market, and also holds out some hope that the wave of new LNG from nearly-completed projects in Australia will find buyers for the uncontracted portions of their output. About 32mn tonnes per annum of LNG capacity is likely to be commissioned this year from three Australian projects, with three more to come in the following years, as well as at least three new ventures in the US. Of course, the caveat is that LNG prices will have to remain low enough to compete with pipeline supplies, and also coal, while China’s policymakers will also have to play their part. Clyde Russell is a Reuters columnist. The views expressed are his own. Robot revolution reaches Mitsubishi UFJ Financial Bloomberg Tokyo Meet the latest employee of Japan’s biggest bank: a multilingual robot called NAO. Mitsubishi UFJ Financial Group Inc unveiled the 58-centimetre (23-inch) humanoid yesterday to improve services for customers in Japan and become the first bank in the world to use robots at branches, it said. NAO can read emotions and speak 19 languages, the bank said in a presentation. It’s still being tested and will start working at one or two locations in Tokyo around April on a trial basis, the lender said. The robot, developed by Paris-based Aldebaran Robotics SA, a unit of SoftBank Corp, will greet customers and ask them what services they need. Mitsubishi UFJ’s move coincides with Prime Minister Shinzo Abe’s ambition to achieve a “robot revolution” as part of his growth strategy for a nation that’s facing a shrinking workforce and declining population. Financial firms worldwide are paying attention to technology and the country’s lenders need to keep up with developments, Japanese Bankers Association Chairman Nobuyuki Hirano said in January. “Robots can supplement services by performing tasks that our human workers can’t, such as 24-hour banking and multilingual communication,” said Takuma Nomoto, chief manager of information technology initiatives at Mitsubishi UFJ. Goldman scans Kaisa fallout for value in China property debt Bloomberg Beijing T he risk of the first default by a Chinese property developer on a dollar-denominated bond isn’t unnerving Goldman Sachs Group Inc’s money managers, as they look for buying opportunities amid the fallout. Kaisa Group Holdings Ltd missed a $23mn interest payment earlier this month, putting it at risk of defaulting on its dollar-denominated bonds. The spread on high-yield notes from China in the currency rose to 1,133 basis points on January 19, the highest since 2012. “It is actually creating really some attractive buying opportunities in goodquality assets that are being thrown out with the bad,” said Philip Moffitt, head of Asia-Pacific fixed- income at Goldman Sachs Asset Management, which oversees about $1tn in assets globally. “The situation in the property market is precarious, but that isn’t a new phenomenon.” The resignation by Kaisa’s Chairman Kwok Ying Shing in December was the second surprise exit by a Chinese property tycoon in six months, as the government investigates dealings with local officials. Goldman likes noninvestment debt from higher-quality developers that focus on first-tier cities, such as Shanghai and Beijing, where there is a reasonable supply and demand outlook, according to Moffitt. “We adjusted our property exposures probably 12 months ago,” he said in a telephone interview on Tuesday. “We took them down a bit and we also increased concentration in terms of owning assets we like.” Moffitt declined to say if Goldman held or holds Kaisa bonds. Goldman hasn’t changed fixed-income exposures in Chinese real estate, or in China in general, following Kaisa’s troubles, he said. Kaisa skipped its coupon payment on Jan. 8 and failure to settle within a 30-day grace period would result in a default. Chinese companies comprised 62% of all dollar bond sales in the Asia-Pacific region outside Japan last year, issuing $244.4bn of the $392.5bn total, according to data compiled by Bloomberg. Kaisa is being investigated over alleged links to Jiang Zunyu, the former security chief of Shenzhen taken into custody in a graft probe, two people familiar with the matter said earlier this month. Kaisa missed a $23mn interest payment in January, putting it at risk of defaulting on its dollar-denominated bonds. The company’s $500mn of 10.25% bonds rallied to 63.7 cents as of 2:30 p.m. in Hong Kong from a record intraday low of 26.3 cents on January 7, according to Bloomberg- compiled prices, after reports the Shenzhen local government is seeking new investors to take over the developer based in the southern Chinese city. “Over the past three years - postcrisis – we’ve seen a lot of money flow into high-yielding fixed-income assets,” Moffitt said. “Part of that capital is there without knowing what it owns, so when the lights turn orange there are some investors at the margins who want to get out.” The Chinese property market is broadly playing out to Goldman’s expectations and the lender will add positions where it’s cheap and makes sense, said Moffitt. 14 Gulf Times Tuesday, February 3, 2015 BUSINESS Australian dollar plunge to worsen as RBA seen adding stimulus Bloomberg Sydney Not since 2009 has Australia’s dollar tumbled so far in the first month of the year. The world’s biggest foreignexchange trader says the pain is far from over. After tumbling 5.1% in January, Citigroup forecasts the so-called Aussie will fall an additional 3.6% in three months to 75 US cents. Money-market traders give betterthan-even odds the Reserve Bank of Australia will cut interest rates today to stimulate an economy ravaged by the commodities slump, damping the appeal of the nation’s financial assets to global investors. “The market is increasingly pessimistic on the RBA,” Todd Elmer, a strategist at Citigroup in Singapore, said by phone on January 29. “I doubt that, even if the RBA is relatively hawkish, investors are going to back down from this expectation for easing.” Australia is struggling with the end of a once-in-a-century resources boom and a slowdown in China, which buys more than a third of its exports. RBA Governor Glenn Stevens has been trying to talk down the Aussie for months to make the economy more competitive, and identified 75 cents as his preferred exchange rate in a December 12 interview with the Australian Financial Review. The Aussie started weakening in September, and since then has lost 17% against its US counterpart. It touched a 5 1/2-year low of 77.20 US cents on January 29, and bought 77.92 cents as of 7:41am yesterday in New York. Options traders are gearing up for further losses. It costs 2.05 percentage points more to protect against declines in the Aussie versus the US dollar for one month than to do the same for gains, according to data on risk reversals compiled by Bloomberg. That’s the biggest premium since August 2013. “The Aussie is in the middle of its period of weakness,” Eric Stein, who oversees about $13bn at Bostonbased Eaton Vance Corp, said by e-mail on January 29. Stein cited “structural weakness in the Australian economy, the fall in iron-ore prices, and the slowdown in the Chinese economy” as well as “general US dollar strength” as the Federal Reserve prepares to raise its benchmark rate. He forecast a decline in the Aussie to 75 cents, without giving a timeframe. A Deutsche Bank AG index tracking the prices of commodities important to Australia has tumbled 31% in the past year. Growth will slow to 2.6% in 2015, after growing at a 2.7% annual pace in the third quarter of 2014, economists surveyed by Bloomberg predict. A Chinese manufacturing gauge unexpectedly signalled contraction in January for the first time in more than two years, an official report on Sunday showed. While swaps traders are pricing in an Australian rate cut today, that’s not the consensus among analysts: 21 of 27 economists surveyed by Bloomberg predict no change this week. The RBA has kept rates on hold for 17 months - the longest period in almost two decades. Stevens himself has played down the prospect of cuts, telling the AFR in December that high borrowing costs aren’t “really the problem.” “The RBA wants to support the economy via a weaker currency rather than by cutting rates,” Yukino Yamada, a strategist at Daiwa Securities Co in Tokyo, said by phone on January 29. “The market has been overly aggressive in pricing in further easing. Downside in the Aussie will be limited from here.” Swaps prices suggest a 57% chance the RBA will reduce Australia’s main rate from a record-low 2.5% at its first policy meeting of the year, up from 27% odds at the end of December, data compiled by Bloomberg show. Even if there’s no cut today, traders are positioned for 0.58 percentagepoint of rate reductions over the next 12 months, according to a Credit Suisse Group AG swaps index. By easing policy, the RBA would join central banks from the euro region to India, Canada and Russia which have taken action this year to boost growth and stave off deflationary pressures. The contrast for additional stimulus across much of the globe contrasts with the Fed’s plans to raise borrowing costs this year, which has fuelled demand for US dollars. The Aussie is headed lower with or without rate cuts from the RBA, according to Joseph Capurso of Commonwealth Bank of Australia, the nation’s biggest lender. “The most important reason we’re so negative on the Aussie is we think the US dollar has more upside,” Capurso said by phone from Sydney on January 29. “Aussie will be down to 72 cents before the middle of the year.” Asia stock markets mostly lower Beijing puts yuan back on the leash as PBoC battles outflows AFP Shanghai Reuters Shanghai/Hong Kong S he People’s Bank of China is using its official guidance rate to put a floor under the yuan, a move that suggests Beijing is worried enough about mounting capital outflows to resume intervention in the forex market. The new strategy – or more accurately, the return to an old one – represents a step back from Beijing’s repeated commitments to meddle less in the foreign exchange market, but the central bank lacks attractive alternatives. Letting the yuan slide sharply will only accelerate capital outflows, which would put upward pressure on interest rates just as the central bank wants to make money cheaper in order to stimulate the slowing economy and ease huge debt loads at many Chinese companies. One alternative is to tighten up the capital account to “trap” money inside the country. That might relieve some of the pressure to manage the exchange rate, but would be a step back from reform. However, the current strategy is not costless, traders say. “Liquidity in the onshore market is okay so far, but if the central bank continues to lean against the market forces, transaction volumes could be affected,” said Wang Ju, senior Asian FX strategist at HSBC in Hong Kong. Unlike many other countries with managed exchange rates, the PBoC does not buy or sell yuan to defend its band; it simply throws out any bids outside the limit. That makes the band invulnerable to speculative attacks, but it can cause the market to flatline if traders refuse to do business in designated range and try to outwait the bank. That happened in late 2012, when the bank tried – and failed – to hold back a rally it saw as getting out of hand. The central bank’s strategy is clear from the way it sets its official midpoint rate, a fixed exchange rate set every morning from which the exchange rate can rise or fall by 2%. When the midpoint is set in a way that expresses median market consensus – as the name implies – the resulting envelope gives the yuan a 4% range across which it can range all day, and few fully liberalised currencies will vary by a wider range in a given day. But if the midpoint is set far away hanghai stocks tumbled yesterday after two gauges of Chinese manufacturing activity showed contraction in January, while some Asian markets were also hit by a sell-off on Wall Street. Oil prices plunged again after enjoying a strong rally on Friday. The euro ticked up despite falling eurozone prices and continuing concerns about Greece’s bailout dispute with its international creditors. Shanghai tumbled 2.56%, or 82.06 points, to 3,128.30 and Hong Kong closed slightly lower, giving up 22.31 points to 24,484.74. Tokyo slipped 0.66%, or 116.35 points, to end at 17,558.04. However, Sydney added 0.66%, or 36.98 points, to end at 5,625.30, while Seoul added 0.18%, or 3.42 points, to 1,952.68. US markets provided a negative lead after the Department of Commerce said on Friday that the US economy expanded at an annual rate of 2.6% in the fourth quarter, well below the 5% in the previous three months. Adding to selling pressure was news that prices in the eurozone fell by a record 0.6% in January, fanning concerns the currency bloc is facing years of deflation. The Dow sank 1.45%, the S&P 500 lost 1.30% and the Nasdaq fell 1.03%. Traders were also reacting yesterday to news that China’s official purchasing managers’ index (PMI) of manufacturing activity unexpectedly retreated last month for the first time since late 2012. Data Sunday showed its PMI at 49.8 last month, against 50.1 in December. Anything below 50 points to contraction and anything above indicates growth. Yesterday HSBC said its January PMI was 49.7, a tad up from 49.6 in December but still showing shrinkage. The results are the latest to highlight the weakness of China’s economy, which in 2014 grew at its slowest pace in 24 years. However, it will fan talk of further monetary easing measures. “We think demand in the manufacturing sector remains weak and more aggressive monetary and fiscal easing measures will be needed to prevent another sharp slowdown in growth,” Qu Hongbin, HSBC chief economist for China, said in the release announcing the bank’s figure. On currency markets the dollar was at 117.62 yen in afternoon trade against 117.59 yen in New York late Friday. The euro bought $1.1314 and 133.01 yen against $1.1284 and 132.70 yen in New York. Gold fetched $1,274.22 an ounce, down from $1,264.49 on Friday. In other markets, Bangkok edge up 0.09%, or 1.45 points, to 1,582.70; Jakarta closed down 0.25%, or 13.17 points, to 5,276.24; Singapore rose 0.95%, or 32.15 points, to 3,423.35; Wellington added 0.22%, or 12.69 points, to 5,756.69; Taipei rose 0.27%, or 25.08 points, to 9,386.99; Manila slipped 0.77%, or 59.20 points to 7,630.71 and Kuala Lumpur was closed for a public holiday. T An employee counts yuan banknotes at a bank in Beijing. The yuan has been on a slide against the dollar since a peak struck in January 2014. from average spot prices, the 4% envelope becomes meaningless, and that is what is happening now. Since November the spread between the spot rate and the midpoint has tripled to record highs; the 14-day moving average of the spot yuan is around 6.22 per dollar, while the midpoint is 6.12 per dollar, a record gap. Yesterday, the spot rate came within 10 points of the edge of the trading band, its closest since the band was widened earlier in 2014. In this case the market – with an eye on the spectacular rise of the dollar in- dex, combined with slides in the euro and the yen – clearly wants the yuan to weaken. The yuan has been on a slide against the dollar since a peak struck in January 2014. That high was followed by a dramatic crash in the exchange rate – which many said was engineered by the central bank to punish speculators. While the currency recovered through the summer it began sliding again in late October in the face of policy easing by the PBoC in the face of surprisingly weak economic fundamentals, and a massive dollar rally in global markets. Further easing is expected this year. Offshore yuan bond yields, particularly at the short end of the yield curve, have started trading at a higher yield to their mainland counterparts for the first time, suggesting investors are demanding higher yields to compensate for downside exchange rate risk. In the derivative markets, implied volatility in one-month offshore dollar/yuan options has also surged in recent weeks, as has the cost of hedging against a weaker yuan. While many are calling for the PBoC to widen the band to allow more movement and to accommodate these bets – and there are signs some are moving money on the assumption – the central bank is showing little sign of indulging them so far. “We don’t think China will change course and join the global devaluation game for several reasons,” said Sean Yokota, head of Asia strategy at Skandinaviska Enskilda Banken AB in Singapore. “China has already been easing monetary policy and there should not be change in market expectations.” Sensex loses 60 points; rupee gains 6 paise IANS Mumbai A The Indian rupee yesterday ended 6 paise higher at 61.80 against the American dollar. benchmark index of Indian equities markets yesterday closed trading 60.68 points or 0.21% down in cautious trade ahead of Reserve Bank of India’s (RBI) policy review scheduled for today. Good buying was observed in capital goods, IT, consumer durables and auto sectors, while selling pressure was seen in fast-moving consumer goods (FMCG) and oil and gas sectors. The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 29,143.63 points, closed at 29,122.27 points, down 60.68 points or 0.21% from the previous day’s close at 29,182.95 points. The Sensex touched a high of 29,268.13 points and a low of 28,958.52 points in intra-day trade. The S&P BSE capital goods in- dex surged by 213.44 points, IT index gained by 111.51 points, consumer durables index moved up by 100.35 points and auto index rose by 91.64 points. However, FMCG index dropped by 146.22 points and oil and gas index dipped by 55.19 points. The wider 50-scrip Nifty of the National Stock Exchange (NSE) also closed trading 11.50 points or 0.13% down at 8,797.40 points. Meanwhile, the Indian rupee yesterday ended 6 paise higher at 61.80 against the American currency on fag-end selling pressure from banks and exporters due to a weak dollar in the overseas markets. The rupee resumed lower at 62per dollar as against last weekend’s level of 61.86 at the Interbank Foreign Exchange (Forex). It moved down further to 62.01 per dollar on initial dollar demand from banks. However, it recovered immediately to end at 61.80 per dollar on selling of dollars by banks and exporters, showing a gain of six paise or 0.10%. Gulf Times Tuesday, February 3, 2015 15 BUSINESS Ma regains spot as Asia’s richest man Bloomberg Beijing A libaba Group Holding chairman Jack Ma regained his spot as Asia’s richest person with a higher valuation for the company’s finance affiliate ahead of a stock sale that also created a dozen new billionaires. Zhejiang Ant Small & Micro Financial Services Group Co, which owns payments processor Alipay, is valued at about $50bn, according to people familiar with the matter. Ant Financial is weighing a private placement before going public in 2016, and details of the planned fundraising aren’t finalised, the people said last week, asking not to be identified because the discussions are private. The latest valuation for Ant Financial boosted Ma’s fortune by about $10bn to $36.4bn as of Friday in New York, according to the Bloomberg Billionaires Index, overtaking Amazon.com Inc’s Jeff Bezos. The new billionaires from the bigger valuation include the e-commerce giant’s chief executive officer Jonathan Lu and chief people officer Lucy Peng. “The entire e-payments market has just started,” said Li Yujie, an analyst at RHB Research Institute Sdn. in Hong Kong. “In the future, Alipay will capture a lot of this market. When it goes public, it will produce many new billionaires.” Lu and Peng, both co-founders of Alibaba, each have a fortune valued Ma: At it again. at about $1.8bn, based on their stakes in Ant Financial, according to the Bloomberg Billionaires Index. Shao Xiaofeng, who joined Alibaba in 2005 and has been its chief risk officer in the past 2 1/2 years, has a fortune of about $1.2bn, according to the index. “It’s got formidable room for growth,” said Cyrus Mewawalla, managing director of Londonbased CM Research. “As Alibaba expands in global markets, so could Alipay. If technology companies do well, then their owners become billionaires.” Bob Christie, Alibaba’s spokesman, declined to comment on the new valuation and billionaires. Other Alibaba co-founders and senior executives also emerge as stakeholders of Ant Financial. Chief operating officer Daniel Zhang and the other eight shareholders each have a net worth of more than $1bn, according to the index. Zhang and CEO Lu are among the Alibaba executives who are on the board, along with Ma and Vice Chairman Joseph Tsai, who has a $5.8bn fortune. The other senior executives include President Jianhang Jin, Trudy Dai, Alibaba’s chief customer officer, Jian Wang, chief technology officer, and his deputy Peng Jiang. Other billionaire shareholders are Eddie Wu, Zeng Ming, Tiger Wang and Judy Tong. The $50bn valuation for Ant Financial is about twice the minimum threshold required for the company’s IPO, according to Alibaba’s prospectus. 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. Ma was ranked China’s wealthiest on the Bloomberg Billionaires Index in August, based on the earlier valuation for Ant Financial. He briefly overtook Hong Kong property tycoon Li Ka-shing for the top spot in Asia in December. “I was really not happy in the past three months when people say Jack Ma is the richest person of China,” Ma said in an interview with Charlie Rose last month. “When you have $1bn, that’s not your money – that’s the trust society gives.” 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 said. Alipay, which is similar to PayPal, has more than 800mn registered users. Its mobile application has 190mn active users and handles 45mn transactions a day, the company said in October. Ant Financial public issue unlikely in 2015, says Ma Reuters Hong Kong Jack Ma, chairman of Chinese e-commerce giant Alibaba Group Holding, said yesterday he hoped the company’s financial affiliate would list in Asia at some point, but that no decision on the timing or location had been made. The comments follow a Bloomberg report last week quoting unidentified sources as saying Zhejiang Ant Small & Micro Financial Services Group, known as Ant Financial, was planning an initial public offering (IPO) next year and the company had an estimated value of about $50bn. “Ant Financial is still a baby today with great potential. It’s just too early to talk about who it’s going to get married to,” Ma said. Asked if a listing would happen this year, he responded: “I don’t think so.” Set up in 2014, Ant Financial has been growing rapidly, largely through targeting smaller businesses and hundreds of millions of consumers who are often underserved by China’s larger banks. Ant runs the Alipay online payment platform, the linked Yu’e Bao money market fund and other services. Alibaba spun out Alipay, seen as a corporate crown jewel, in 2011. Its executives, including Ma, maintain control. As part of an agreement in August between Alibaba and Ant Financial, Alibaba shares 37.5% of the unit’s profit or can in the future take a direct stake in it. Alibaba held its own recordbreaking $25bn initial public offering in September. In recent days, the issue of fake goods and other illegal business on Alibaba platforms has come under the spotlight after the State Administration for Industry and Commerce (SAIC), a government regulator, published reports saying the problem was widespread and the company wasn’t doing enough to fight it. One of the SAIC reports, published last Wednesday, sparked concern that Alibaba had failed to disclose risk factors to its investors prior to its bumper listing in September, and several law firms have said they will take action. Alibaba has denied any wrongdoing. “If we have the guts to list the company, we should not be afraid of lawsuits. This is the kind courage that a Chinese company should have,” Ma said. “We welcome it, and we will deal with it actively and transparently.” Rajan: Set to review monetary policy. Indian rupee biggest Asia gainer in Jan Bloomberg New Delhi I ndia’s rupee is the bestperforming Asian currency in January on optimism the nation’s improving economic outlook will attract more global funds. The International Monetary Fund said in January that India is poised to become the world’s fastest-growing major economy in the year to March 2017. Overseas investors, who net bought a record $42bn of stocks and bonds last year, have added another $5.4bn to their holdings in 2015, the latest exchange data show. India’s central bank cut interest rates in an unscheduled move on January 15 as plunging oil prices helped slow consumer inflation. Bonds rallied for a fifth month. “India remains a favoured destination for foreign investors,” said NS Venkatesh, the Mumbai-based head of treasury at IDBI Bank. “With inflation under control, the current account possibly turning a surplus and economic growth poised to accelerate, we’ll continue to see inflows.” The rupee climbed 1.9% this month to close at 61.8725 a dollar in Mumbai, the biggest monthly advance since May, prices from local banks compiled by Bloomberg show. A 56% slump in Brent crude since end-June helped restrict consumer-price gains below the Reserve Bank of India’s 6% target for a third month in December, prompting the first interest-rate cut since May 2013. Morgan Stanley predicts India will swing to a currentaccount surplus of $1.5bn in the fiscal year starting in April, spurred by the drop in oil and policy makers’ efforts to curb gold imports. Asia’s thirdlargest economy imports about 80% of its oil. RBI Governor Raghuram Rajan next reviews monetary policy today, when he is seen leaving the benchmark repurchase rate at 7.75% by 27 of 35 economists surveyed by Bloomberg News. The rest see a cut to 7.50%. Three-month offshore non-deliverable rupee forwards rose 2.1% this month to 62.84 a dollar, data compiled by Bloomberg show. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars. The yield on the local sovereign bonds due July 2024 fell for a fifth month in January, dropping 16 basis points, or 0.16 percentage point, to 7.69%, according to prices from the RBI’s trading system. CEFC beefing China banks in talks to join gold fix replacement up oil business C C Bloomberg Beijing Reuters Beijing EFC China Energy, a small chemicals and fuel company, is beefing up its oil business to get ready for more open domestic oil markets, hiring trading managers from state energy giants, building storage tanks and looking to invest in oilfields. The moves are signs that independent Chinese firms are expecting the government this year to lift at least some restrictions on the state-dominated oil and gas sector. China’s approval in December of the launch of crude oil futures in Shanghai raised the expectation that crude imports would be freed up to ensure greater participation in the yuan-denominated oil contracts. “Dealing crude is what a mature oil trader does. CEFC seems to be shifting to that role from an earlier image as a commodity trade financing player,” said a senior Beijing trader, referring to CEFC’s practice of using mixed aromatics to raise bank loans to profit from the currency arbitrage. Besides hiring trading executives from state oil companies, CEFC is due to start up an 18mn-barrel tank farm on Hainan island this year, its first such asset in China to store mostly crude oil. Traders with knowledge of CEFC’s activities said the company was also looking to acquire oil producing assets from abroad, possibly Africa. Owning upstream assets can be key in winning quotas for crude oil imports, traders said. Guanghui Energy, an owner of oil and gas assets in Xinjiang and Kazakhstan, was licensed to import crude last year. CEFC has for the past few years been getting import quotas of about 3mn barrels a year, though any shipments have to fit into state refiners’ throughput and production plans. Cui Zhenchu, former head of crude oil trading at Sinopec Corp, confirmed he is now head of oil trading for CEFC China Energy based in Shanghai. Zhang Xincheng, who quit last year as head of products at Hong Kong-listed Brightoil Petroleum, said he has now joined CEFC as head of its oil trading office in Singapore. Before Brightoil, Zhang was Cui’s colleague in Sinopec’s crude oil department. Liu Lei, a deputy trading manager of oil products with Chinaoil, trading vehicle of PetroChina, is the latest hire at CEFC’s Beijing operations, traders said. hinese banks are among those in talks to take part in the replacement for the century-old gold fixing benchmark. There’s a “more diverse pool” of participants, including from China, interested in being part of the LBMA Gold Price, Ruth Crowell, chief executive of the London Bullion Market Association, said in a statement yesterday. The LBMA declined to comment on the number and names of those in talks for the new mechanism that will start in March. No Chinese companies have ever directly participated in the 95-year old price-setting ritual that takes place twice daily by phone between four banks. ICE Benchmark Administration was chosen in November to run the replacement, after silver, platinum and palladium ditched daily fixings last year. Chinese gold demand has more than doubled since 2009. “We are encouraged by the number of firms who have shown interest in being participants in the new, electronic auction,” Finbarr Hutcheson, president of IBA, said in the statement. “Expanding the number of participants in the auction will increase the transparency and robustness of the data” and better represent the market price, he said. Societe Generale SA, Bank of Nova Scotia, HSBC Holdings Plc and Barclays Plc currently conduct the fixings used by miners to central banks to trade and value metal. China overtook India as the largest bullion buyer in 2013. The London-based World Gold Council said in August that demand will expand by at least 20% by the end of 2017 amid rising wealth. About two-thirds of gold jewellery, bars and coins were purchased in Asia in 2013, according to the council. China overtook India as the largest bullion buyer in 2013, the London-based World Gold Council said. Trading volume on the Shanghai Gold Exchange climbed to a record last year. The bourse started bullion trading in the city’s free-trade zone in September and exchanges have added more Asian gold contracts, including a physically-deliv- ered kilogram bar contract that started in Hong Kong last month. The new London benchmark will be regulated by the UK’s Financial Conduct Authority from April 1 and will be brought in line with International Organisation of Securities Commissions principles, according to the statement. Gold for immediate delivery in London gained 7.6% to $1,273.85 an ounce since the end of December, after slumping 29% in the previous two years. 16 Gulf Times Tuesday, February 3, 2015 BUSINESS Top fund favours sovereign debt as Rajan cuts rates Bloomberg New Delhi India’s best-performing fixed-income fund manager in 2014 favours sovereign debt as the central bank embarks on the most aggressive policy easing in five years. “We are very positive,” Rahul Goswami, chief investment officer for fixed income at ICICI Prudential Asset Management Co, which manages 1.37tn rupees ($22bn), said in a January 19 interview in Mumbai. “Our first preference is for long- term government notes, then long-term corporate bonds, followed by state development loans.” Reserve Bank of India Governor Raghuram Rajan cut the repurchase rate to 7.75% in an unscheduled move last week, Singapore empty homes may climb to highest since 1998 Bloomberg Singapore S am King had a pleasant surprise when the lease on his Singapore apartment came up for renewal late last year. For the first time in six years, King was able to negotiate a lower rent with his landlord. “It has turned into a tenant’s market,” said the 29-year- old sales director at an aviation services company, who got a 10% reduction in the rent on his two-bedroom penthouse in the east of Singapore. His landlord also agreed to split some renovation costs, and provide new curtains and lights. As Singapore’s property market cools following five years of price gains, the number of empty apartments is on the rise, putting pressure on some landlords and giving the upper hand to tenants like King who are renegotiating their leases. Vacancy rates for private residential homes rose to 7.1% during the quarter ended September 30, up from a low of 4.6% in March 2010 and the highest since March 2006, data from the Urban Redevelopment Authority showed. Some landlords, facing tighter lending curbs and a more competitive rental market, have defaulted on their mortgages, leading to a fivefold jump in the number of properties put up for auction by the banks. A total of 159 apartments or houses were auctioned last year, up from 32 in 2013, according to auction data from real estate broker Colliers International. With fewer expatriates coming to live in Singapore due to controls on immigration, and a large number of apartments set to be completed in the next two years, the vacancy rate could rise further in 2015, bringing rents down even more. “We may hit almost 10% by end of 2015 as completions are coming faster than the time now taken to find a tenant,” said Alan Cheong, a Singapore-based director at broker Savills Plc. Even in the depths of the Asian crisis of 1998, when Singapore property prices plunged 34%, apartment vacancies topped out at 9.7%, Cheong said. More defaults are also probable, though for the moment it’s only a small proportion of landlords who are facing difficulties with their mortgages. Less than 0.5% of all mortgages were in default, according to the Monetary Authority of Singapore’s latest financial stability report, published in December. Those in arrears with loans that are more than 30 days past their due - made up less than 1% of mortgages. Landlords with multiple properties are most exposed to the softening rental market. With resale prices falling as well, they often can’t recoup the price they paid for properties they are unable to rent out. “The cooling measures have affected homeowners’ ability to sell,” said Sharon Lee, director and head of auction at the broker Knight Frank Singapore. sending the 10-year sovereign bond yield to 7.70%, its lowest close since July 2013. ICICI Prudential sees both the yield and the repo rate at 7.25% by end-2015 as consumer- price gains slow. “While the RBI has started reducing rates, there’s still a reasonable opportunity to accumulate for investors,” Goswami said. “If one stays invested for the long term, the risk-reward is inclined in favour of reward.” The ICICI Prudential Long Term Fund returned 19.4% in 2014, the highest among 76 open-ended fixed-income plans tracked by New Delhi-based data provider Value Research India Pvt. ICICI Prudential Income Plan ranked second with 16.9% and HDFC High Interest Fund was third with 16.1%. Ten-year sovereign bonds had their biggest advance since 2008 last year, pushing the yield down 97 basis points, as a near 50% plunge in Brent crude cooled inflation. Global banks including Morgan Stanley and Commerzbank AG stepped up forecasts for easing this year following the RBI’s first rate reduction since May 2013. The decision came after consumer-price increases held below the RBI’s 6% target for a third straight month in December and as the government took steps to curb the fiscal deficit. Rajan had raised the rate three times since taking office in September 2013. ICICI Prudential “would have articulated a view that rates will definitely come down and positioned the fund accordingly,” Dhirendra Kumar, chief executive officer of Value Research, said in a phone interview yesterday. “It’s quite an achievement.” Goswami’s optimism on bonds also stems from the impact retreating oil is seen having on India’s currentaccount deficit as Asia’s third-largest economy relies on imports for about 80% of its oil needs. Data last week showed the trade deficit, a part of the broader current account, narrowed to $9.43bn in December, the smallest since February, as oil imports dropped 28.6% from a year earlier. The shortfall in the current account was at $10.1bn for the July-September quarter, the largest since June 2013, the latest central bank data show. It had widened to a record $88.2bn in the 12 months ended March 2013. “If oil prices average around $65 a barrel in the year ending March 2016, India will see significant savings, with the current account possibly turning into surplus,” Goswami said. “That would boost liquidity and could have a positive impact on the currency, which in turn will enable the RBI to cut interest rates further.” The rupee sank to a record 68.845 a dollar in August 2013 amid a sell-off in emerging-market nations with current-account deficits after the Federal Reserve signaled it was ready to taper US stimulus. A 75-basis point reduction in the repo rate this year would be the biggest annual decrease since 2009. The currency, which slid 2% in 2014 to complete a fourth straight year of losses, has strengthened 2.3% this year to 61.5950 a dollar, the biggest advance in Asia. The 10-year yield has fallen 15 basis points, or 0.15 percentage point, to 7.71%. The ICICI Prudential Long Term Plan had 98.2% of its assets in government bonds maturing between 2024 and 2033 as of Dec. 31, according to the fund’s factsheet. The 8.60% notes maturing in 2028 made up 75.2% of the assets, the document showed, while the 8.4% debt due in 2024, the current Indian 10-year benchmark, formed 11.5%. Last year’s rally in local bonds was aided by a record $26bn of foreign purchases of rupee-denominated corporate and sovereign debt. Global funds have added another $2bn to their holdings this year. “For a reasonable period of time, we have continued to remain positive on duration and with oil prices coming down, our conviction has only strengthened,” Goswami said. Philippines faces threat of unequal economic growth Reuters Manila T he Philippines may surpass China to be Asia’s fastest growing economy this year, but its bigger challenge is working out how to sustain and share the gains of the past five years to secure longer-term prosperity. Since President Benigno Aquino came to power in 2010 and embarked on a reform and governance push, the Philippines has become a hot investment favourite and one of the fastestgrowing economies in the world. Investors now want to know how the Southeast Asian country will be able to sustain fiscal and economic policies that have spurred growth and reduced poverty after Aquino’s term ends next year. “We think that 2016 is critical in terms of the long-term outlook of the Philippines,” said Eugenia Victorino at ANZ bank. The Philippines defied the region’s slowdown in the fourth quarter by regaining momentum, bringing fullyear growth to 6.1% – the fastest expansion in Asia after China. This year, Aquino is aiming for growth of 7-8%, while China’s growth is expected to slow to around 7%. Aquino has fought corruption and prioritised infrastructure improvements that are pivotal to raising growth potential. However, the economy is still mired with high unemployment. The World Bank has said Philippine growth is now “more inclusive”, and there are signs benefits are trickling down. More than one million jobs were created in 2014 and unemployment fell to 6%, the lowest for at least a decade. But job creation has still struggled to match the number of people looking for work; 42% of the population still live on less than $2 per day. Vibrant sectors, such as booming back-office firms, earn foreign exchange but don’t spread a lot of prosperity. “To have one of those jobs, you need some skills. At a minimum, decent command of English and computer literacy, but often a bit more than that,” said Dan Martin at Capital Economics. Manufacturing, the sec- High-rise buildings are seen in Manila. The Philippines defied the region’s slowdown in the fourth quarter by regaining momentum, bringing full-year growth to 6.1%, the fastest expansion in Asia after China. tor probably best able to raise productivity and the income of low-skilled workers, could benefit as low wages and a competitive currency help the Philippines grab some of the production that is leaving China because of rising costs. Aquino, limited by the constitution to a single term in office, has im- proved public finances and boosted investment in roads, ports and schools through public-private partnerships. Last summer, wrangles with the Supreme Court caused a seize-up of government spending, but it resumed after Congress passed a supplementary budget in December. “We’re very hopeful that the Aquino government will be able to release the funds to continue with its infrastructure programmes,” said Victorino. The outlook from mid-2016, following the elections for a new president and half of Congress, is far less certain. Poor leadership in the past has sparked uprisings, large-scale pro- tests and military revolts, and populist politics have weakened national finances. Vincent Lazatin, head of the Transparency and Accountability Network, a think tank in Manila, reckons it will take longer than a single presidential term to entrench good governance and sound policies. Cheap energy helps Japan firms improve profits Bloomberg Tokyo T okyo Electric Power Co and other Japanese utilities are finding solace in plunging energy prices, which are offsetting a drag on earnings from a weaker yen and the absence of nuclear power capacity. Tokyo Electric, operator of the wrecked Fukushima Dai-Ichi atomic station, yesterday said operating profit rose 29% in the first nine months of its fiscal year after cutting costs and fuel expenses. Chubu and Chugoku regional utilities returned to profit; Hokkaido’s power provider narrowed its net loss. “The purchase of additional fossil fuels has impacted the utilities greatly,” said Yutaka Miki, who studies energy issues at the Japan Research Institute. “They’d been faced with the weak yen and high oil cost. So at least the drop in oil prices, in theory, could help cut their losses or move into the black.” Lower fuel costs offer Japan’s regional power utilities a respite from several years of mounting losses after turning off nuclear generation since the Fukushima disaster in March 2011. All of Japan’s 48 operable reactors remain shuttered pending safety reviews and approvals. Underscoring nuclear’s contribution to the bottom line, Kansai Electric Power Co, the Japanese utility most reliant on atomic power, reported a widening of its net loss to 66.6bn yen ($566mn) from a year earlier when it had two nuclear reactors running. Kansai’s electricity sales fell 5% due to a cooler summer in 2014. The Osaka-based utility and operator of the Ohi nuclear plant in western Japan also widened its loss forecast for the year, saying it now expects a deficit of ¥161bn for the 12 months ending March 31. Kansai cited changes in Japan’s corporate tax rate for the widening. Kyushu Electric Power Co, which is edging forward to resume operations at its Sendai nuclear plant in southern Japan, widened its net loss to ¥77.8bn in the period from 59.09bn yen even as sales rose 5.1% in the period. Utilities less dependent on nuclear generation saw results that were markedly better. Net income at Tohoku Electric Power Co gained fivefold to ¥70.7bn. Hokuriku Electric Power Co’s profit more than doubled to ¥10bn. For the nation’s biggest power utility, known as Tepco, net income fell 77% to ¥180bn from a year ago when it received a government injection into its fund for payouts related to the Fukushima disaster in March 2011. “In spite of the suspension of all nuclear power stations improvements of thermal efficiency and using less expensive fuel limited the influence of increasing fuel expenses resulted from yen depreciation,” Tepco said in a statement. In Tepco’s case, the utility reported a 3.7% drop in electricity sales volume for the nine months because customers used their air conditioners less during Japan’s summer. As a result, thermal power generation fell, contrib- uting to a 4.5% drop in fuel expenses. The utility also improved thermal efficiency, it said. Tepco’s annual profit forecast was unchanged at ¥521bn. There’s a good chance Tepco will raise its annual profit forecast within a couple of months, helped by the lower fuel prices, said Hidetoshi Shioda, an analyst with SMBC Nikko Securities Inc. “You have the drop in oil fuel costs coming first,” with a corresponding decline in electricity tariffs lagging behind, Shioda said. “The April to June quarter will be the peak of earnings before they drop off a bit from July,” a trend that will become more pronounced as the year goes on, he said. Tepco, which serves 29mn customers in the Tokyo metropolitan area, vowed in December to reduce costs this fiscal year by ¥837bn through measures including minimizing its use of oil in favor of cheaper fuels. Japan’s 10 regional power companies boosted their consumption of LNG by almost 2% to a record 5.37mn metric tonnes in December, according to industry data released earlier this month. Coal use rose 2.6%, while oil consumption dropped 20%. Any gains from the decline in oil prices - crude is trading at six year lows are complicated by the fact that the fuel is traded in US dollars. That means that while the utility receives a break when fuel costs drop, it also ends up paying more when the Japanese currency loses in value. The drop in oil prices will echo in LNG prices, but with a three-month lag, Tepco Managing Director Katsuyuki Sumiyoshi said at a briefing in Tokyo. This means the biggest impact from lower oil prices will translate into Tepco’s mostly gas-fired generation next fiscal year starting April 1, he said. To compensate for the absence of nuclear power, other utilities have raised rates and embarked on cost cuts. Tepco, Kansai Electric, Chubu Electric and three other utilities plan to raise electricity rates because the weaker yen is having a bigger impact than the reduction in fuel prices, the Mainichi newspaper reported this week. Gulf Times Tuesday, February 3, 2015 17 BUSINESS Nykredit not to issue mortgage bonds with negative rates Reuters Copenhagen D Lorries queue at the cement dispensing outlet at the CRH quarry in west Dublin. Lafarge and Holcim said the assets to be sold to CRH mainly comprised operations in Europe, Canada, Brazil and the Philippines, and generated about €5.2bn in revenue and €744mn in earnings last year. CRH buys $7.3bn assets from Holcim-Lafarge Bloomberg Dublin C RH Plc agreed to buy €6.5bn ($7.3bn) of cement assets from Holcim Ltd and Lafarge SA as the Irish company saw its rivals’ need to divest businesses to meet merger demands as an opportunity to grab market share. The assets to be sold to CRH, mainly comprised of operations in Europe, Canada, Brazil and the Philippines, generated about €5.2bn in revenue and €744mn in earnings last year, Lafarge and Holcim said in a joint statement yesterday. The deal dwarfs any of CRH’s acquisitions thus far. The Dublin-based building-materials supplier fine-tuned a strategy of making bolt-on acquisitions to grow at a steady pace, refraining from the flurry of mega debtfuelled deals in the mid-2000s that Holcim, Lafarge, Cemex SAB engaged in to spur rapid growth globally. CRH stock rose the most in a year. “It’s really a great fit for us,” chief executive officer Albert Manifold said on a call. “Not all of these assets are going to remain long term in our group.” By holding its nerve and not joining the spending bonanza that preceded the financial crisis, CRH has been able to step in and buy assets when valuations aren’t as overheated as they were then, the CEO said. It will be required to take a minority partner in the Philippines, and is talks with KKR & Co regarding some UK assets. CRH shares gained €1.17, or 5.5%, to €22.49 as of 8:26am, their biggest intraday advance since February 25. Holcim added 2.4%, and Lafarge was up 1.1%. The purchase is expected to boost adjusted earnings per share by about 25%, with a return on equity in the high-teen percentages in 2016, CRH said. It’s paying €2bn in cash and planning a 9.99% share placing to institutional investors. The stake sale will be organized and managed by UBS, JP Morgan Securities, Merrill Lynch International and J&E Davy. The Irish company is looking to get €90mn in savings in the third year of ownership. It expects net debt to reach 3.2 times Ebitda “in the short term.” “We really are buying these businesses at the right time,” Manifold said. “Buying these businesses at this point of the cycle, with trough margins, trough earnings and very low cost financing, puts us in a very good position to create value.” For Holcim and Lafarge, the sale removes the final major hurdle in the way of the two companies’ plan to combine cement- and crushed-rock operations with $40bn in annual revenue. The companies expect the merger, agreed in April last year, to be completed in the first half, once Holcim shareholders approve the deal at a meeting and Lafarge investors tender their shares. They represent “the vast majority of the divestments” needed for antitrust approval, Holcim chief executive officer Bernard Fontana said on a conference call today. Holcim and Lafarge are still waiting for regulatory clearances in the US, Canada, India, Mauritius and Ecuador, and can get approval postmerger in Indonesia, he said. The plan to merge Jona, Switzerland-based Holcim and Paris- based Lafarge to create the world’s biggest cement maker was approved last year by the European Union and subject to the sale of overlapping operations in more than half a dozen countries. CRH, which can cut costs from overlapping businesses, competed against bidders including a group formed by Cinven and Blackstone Group, people familiar with the matter have said. Holcim and Lafarge were advised by Credit Suisse Group AG and HSBC Holdings Plc as well as BNP Paribas and Morgan Stanley. CRH worked with UBS, Bank of America Merrill Lynch, JPMorgan Chase & Co, and Davy and Goodbody. enmark’s Nykredit said yesterday it would not issue new mortgagebacked bonds at negative interest rates because it is unclear how such bonds should be handled. Recent central bank actions taking interest rates well below zero have raised the question of whether mortgage borrowers should receive interest on their loans if rates turn negative. “The approach to negative rates is a question of fundamental mortgage industry principles. The main question is whether borrowers should get money for borrowing money,” divisional vice-president at Nykredit Sune Worm Mortensen said in a statement. “...As the matter remains unresolved, we do not wish to issue one-year and two-year reset ARMs (adjustable rate mortgages) with negative interest rates.” Nykredit, one of the largest private bond issuers in Europe, called for a market consultation on how to handle such bonds, which help finance Danish mortgages. Yields on outstanding bonds have turned negative after a series of central bank rate cuts. Denmark’s central bank cut its deposit rate three times in January, deeper into negative territory, to -0.5% — effectively charging banks to park their money securely with the central bank. The Danish mortgage backed bond market is Europe’s second biggest after Germany. “Nykredit believes that the question of how to address negative rates is an industry challenge that should also be seen from a longer-term perspective,” the lender said. “The objective must be to find a widely recognised and robust solution covering all loan types.” On top of cutting deposit rates three times in less than two weeks, the Danish central bank said on Friday it had halted new government bond sales until further notice. Pressure had been building on Denmark’s crown since the Swiss National Bank abandoned its currency cap and let the franc surge against the euro on January 15. The European Central Bank’s new bond-buying scheme has also helped weaken the euro broadly. Nykredit stressed that its decision will not affect existing customers with one-year and two-year reset adjustable-rate mortgages, as negative rates are still not relevant to them because of the refinancing price spread. Amazon is breaking out cloud revenue. Why aren’t you? Bloomberg New York A mazon.com’s plan to divulge its cloud-business revenue is putting pressure on competitors to follow suit. In its next quarterly earnings report, the company plans to make Amazon Web Services a separate category, showing investors that it’s the cloud market leader. The move follows a shift by Oracle Corp, which in June began breaking out results from its cloud-computing offerings. Cloud, where customers rent server space to store and run applications on the Internet, is promoted as the future of the technology industry - but companies haven’t made it easy to gauge the competition. For some companies, cloud-computing revenue is counted with unrelated products and lumped into ambiguouslynamed divisions; others include hardware sales or metrics that are tallied separately from income statements. “Investors are laser focused on the health of the cloud business for larger tech players as this is a golden market opportunity that can be a major catalyst to growth,” said Daniel Ives, an analyst at FBR & Co Breaking out cloud revenue is “a major step in the right direction and has helped with transparency around this all-important growth engine.” Here are how a handful of technology companies report the increasingly important cloud numbers: AMAZON: Amazon Web Services has traditionally been put into “North America, Other,” which includes advertising services and cobranded credit card agreements. Last year, the category produced $5.4bn in sales, according to a company statement Thursday. AWS has become a big deal strategically for the online retailer, embedding its technology with businesses and consumers who need cloud-computing infrastructure. While already dubbed the leader by Synergy Research Group in public cloud infrastructure, next quarter Amazon intends to prove with its standalone cloud number just how significant a player it is. “We just think it’s an appropriate way to look at our business in 2015,” Amazon Chief Financial Officer Tom Szkutak said. ORACLE: the software maker has arguably given the most clarity on cloud sales among its en- terprise technology peers - and it’s not afraid to say so. The company in June began breaking out infrastructure-as-a-service and a combined software and platform offerings delivered as a service. In the six months after the accounting change ended in Nov. 30, revenue totaled $698mn for software and platform offerings and $293mn for infrastructure. “As the cloud revenue has grown larger and more significant, we’ve gone ahead and disclosed them on the face of our income statements,” then-CFO Safra Catz said on a June earnings call, asking analysts and investors to pull out the financial document so she could walk them through the changes. IBM: International Business Machines Corp is quick to claim cloud leadership with a sticker number of $7bn in sales last year. “I think that kind of puts us at the forefront of cloud in the cloud industry and the cloud space,” CFO Martin Schroeter said on a January 20 earnings conference call. That $7bn, which is not reported as a line-item on the income statement, also includes software, hardware and services to build private clouds. The “as-a-service” business, which is only technology delivered online and more compa- rable to its peers, had a $3.5bn annual run rate at the end of 2014. MICROSOFT: Another player who combines different business products into one number is Microsoft Corp The Windows Azure cloud offering, as well as cloudbased Office 365 and Dynamics CRM, all get lumped in to the same category. Similar to IBM, the company does break out an annualised run rate metric for its commercial cloud: $5.5bn. H E W L E T T- PA C K A R D : Hewlett-Packard Co sells cloudbased products in what it calls the Enterprise Group. The company doesn’t give a separate cloud number in its financial statements. RACKSPACE: Founded in 1998, managed cloud services provider Rackspace Hosting Inc breaks out net revenue for dedicated cloud and public cloud offerings. Respectively, net sales came in at about $1.2bn and $509mn in the past four reported quarters through September. SALESFORCE: About 94% of what Salesforce.com sells is cloudbased technology for businesses, which is tallied as “Subscription and support” revenue. That totalled $4.7bn in the past four reported quarters through October. Employees pack items to be shipped from the Amazon.com distribution centre in Phoenix, Arizona. In its next quarterly earnings report, Amazon.com plans to make web services a separate category, showing investors that it’s the cloud market leader. 18 Gulf Times Tuesday, February 3, 2015 BUSINESS Danish central bank should keep euro peg, says CEO of Novo Nordisk Bloomberg Geneva A A customer operates an ATM outside a Bankia branch in Madrid. Intense discussions were continuing between Bankia and its majority shareholder, the Spanish state, on how to share the burden of an ill-fated share sale in 2011, sources said. Bankia compensation bill for IPO losses seen at $570mn Bill may not be as big as initially foreseen; Bankia, state in talks over burden sharing agreement; treasury ministry opposes any deal that costs taxpayers money; accord expected in next few days Reuters Madrid T he bill for compensating small investors that bought into Spanish lender Bankia’s ill-fated share sale in 2011 should not be more than €500mn ($570mn) and will probably be split between the state and the bank, three sources familiar with the matter said yesterday. They said intense discussions were continuing between Bankia and its majority shareholder, the Spanish state, on how to share the burden and a deal was expected in “the next few days”. However, a spokeswoman for the treasury ministry said it “would oppose anything that would cost taxpayers money”. Last week the bank postponed publication of its 2014 results while it awaits a decision. Bankia, created from the merger of seven regional savings banks, was floated on the stock market in July 2011 after raising some €3bn, including €1.8bn from the sale of shares to hundreds of thousands of the bank’s individual customers. Less than a year later the bank had to be bailed out by the government, wiping out those investments. The lender returned to profit in 2013 but a long-running court investigation into whether the flotation prospectus misled potential investors has dogged its recovery. According to one of the sources, those Bankia shareholders still interested in seeking compensation have already sought a total of about €100mn but the bill is expected to keep rising to at least €300mn. The other two sources, both involved in the discussions, said the final cost was not expected to go beyond €500mn because many shareholders had already sold their shares. The economy ministry, which controls Spain’s bank restructuring fund FROB, and Bankia declined to comment. While the total theoretical risk for the lender is €1.8bn, the amount minority shareholders bought in the flotation, investors’ association Asinver said only a small portion of investors would seek compensation. “Many want to move on and are not keen to invest time and money in the judicial process,” said Javier Flores, head of analysis at Asinver. He estimates that the final cost could total €300mn. However, other bodies representing investors believe the litigation could yield up to €1bn. The range of €300mn to €500mn would translate into a 0.03 to 0.05% hit for Spain’s annual public spending deficit if the bill was to be fully assumed by the state. Bankia, which is on course to post a €1bn profit for 2014, would also be able to weather the hit financially but it would make it more difficult to complete its authorised restructuring plan in 2015 and start paying a dividend. “All in all, a €500mn charge would have a negative impact of 56 basis points in the bank’s capital (solvency) ratios and may restrain the instatement of a cash dividend policy for the group in 2015,” said BPI analysts in a note yesterday. Shares in Bankia were down 4% yesterday. decision by the Danish central bank to drop the country’s currency peg would hurt Novo Nordisk and force the world’s largest insulin maker to rethink strategy, chief executive officer Lars Rebien Soerensen said. Denmark is under pressure to cut the link with the euro after the Swiss National Bank’s surprise decision on January 15 to abandon the cap on the franc-euro exchange rate, which roiled markets. The Nordic country cut its deposit rate three times in 10 days, seeking to deter speculation it may abandon the peg. Doing so would put Danish companies in a similar situation to Swiss ones, the Novo Nordisk CEO said. Novartis, the world’s biggest drug maker, said earlier this week it will need to cut costs in its home country as the franc’s gains threaten to erode profit in 2015. Costs denominated in francs are 15% higher now in euro terms than at the start of the year. “Any move like we’ve seen in Switzerland would not be very advantageous to Novo Nordisk and we would have to adjust our outlook,” Rebien Soerensen said in an interview with Bloomberg Television on Sunday. A dropped peg “would force us to look at our productivity, cost picture and the like. It would be a replay of the Swiss situation.” Geneva-based SGS, the world’s largest product-inspection company, has said it may move some operations abroad. Still, current exchange rates against the krone are so favourable that Novo Nordisk expects them to help add 19 percentage points to operating profit this year, according to a forecast made on Monday. The dol- Soerensen: Apprehensive. lar has gained 19% against the krone in the past year, boosting the value of sales from the US when translated into the Danish currency. Separately, the 60-year-old CEO denied press reports that said he could step down as soon as this year. Danish newspaper Berlingske said December 29 he’s unlikely to remain in the job through the end of his contract in 2019. “It’s a non-story,” Rebien Soerensen said yesterday, calling the reports “rumours.” “I have all intention of fulfilling my contract,” he said. “I still have another four years, I feel reasonably energised and excited about leading the company. There is no news on that front.” It’s normal for a board of directors to discuss succession planning ahead of time, he added. Novo Nordisk earlier today reported fourth-quarter profit that beat analysts’ estimates, helped by currency swings and higher sales of its Victoza diabetes therapies. In a statement, the Danish drugmaker reiterated a forecast for an increase of about 10% in operating profit this year, excluding currency shifts. “I look forward to the exciting years ahead,” Rebien Soerensen said. CORPORATE RESULTS ExxonMobil profits drop on lower oil prices, output However, costs also fell 18.4% to $78.4bn, reflecting the benefit of lower crude oil costs to refining. Exxon’s annual profits were $32.5bn, down 0.2% from 2013. Julius Baer ExxonMobil yesterday reported a fall in quarterly earnings, weighed down by the big drop in oil prices as well as lower petroleum output and weak US refining. The biggest US oil company said fourth-quarter net income was $6.6bn, down 21.3% from the year-ago period. Drivers of the decline included a 19.4% slide in exploration and production profits due to lower oil prices and a 3.8% drop in oil and gas production. Exxon also reported a $1mn loss in US downstream earnings, citing poor refining margins in the region. The weak areas were offset somewhat by a rise in non-US refining profits and higher global chemical profits. Those divisions had lower costs due to the fall in oil prices. The Exxon earnings came as oil companies such as Chevron and ConocoPhillips cut drilling budgets due to a steep decline in oil prices that has pressured earnings. Oil prices have fallen about 60% since June. “ExxonMobil’s results illustrate the value of our proven business model that integrates upstream, downstream, and chemical businesses,” said Exxon chief executive Rex Tillerson. “Our balanced portfolio uniquely positions ExxonMobil to deliver superior results throughout the commodity price cycle.” Exxon announced no capital spending cuts yesterday. The company is expected to update the market on its plans at a March 4 analyst meeting. Exxon’s earnings translated into $1.56 per share, above the $1.34 projected by Wall Street analysts. Revenues dropped more than 20% compared with last year to $87.3bn, demonstrating the impact from lower crude prices on oil pumped from the ground. Swiss bank Julius Baer plans to cut around 100mn Swiss francs ($107mn) of costs, including about 200 jobs, it said yesterday, blaming the recent surge in the Swiss currency. The value of the safe-haven franc rocketed last month after the Swiss National Bank unexpectedly ended its currency cap on the euro. Switzerland’s banks in particular are expected to be hard hit, because the bulk of their spending is in francs. Private bank Julius Baer, which employs around 5,250 staff worldwide, said it aimed to cut both personnel and general costs. It will axe jobs mainly in mid- and back-office positions, the majority of them in Switzerland. It expects to achieve most of its savings this year, it said, as it published full-year financial results. Zurich-based Baer said adjusted net profit in 2014 rose 22% to 586mn francs, below expectations of 603mn francs in a Reuters poll of analysts. Net new money — fresh funds from wealthy clients — rose 5%, within its target of 4 to 6%. Assets under management stood at 291bn francs at the end of 2014. The bank raised its dividend to 1 franc per share from 0.60 francs and affirmed its medium-term targets, which include a cost-to-income ratio of 65-70%. “Despite the miss in net profit ... shareholders will welcome Julius Baer’s increased payout and management’s commitment to maintain a cost/income ratio of around 70%,” J Safra Sarasin analyst Rainer Skierka, who has a “buy” rating on the stock, wrote in a note. At 0901 GMT, Julius Baer shares were up 6.9%, outperforming the European banking index which was down 0.6%. The bank also said it had decided to go ahead with renewing its IT global platforms and had selected Temenos to begin planning for its core banking platform replacement. Julius Baer Chief Executive Boris Collardi said he expected the renewal would take five years. The bank will start the process in Asia due to the importance of market, the complex regulatory environment there and to begin the renewal in a non-franc region, he told journalists. Julius Baer has not disclosed how much the renewal will cost. Collardi also said he was confident the bank would resolve this year a US probe for allegedly helping wealthy Americans to evade taxes with hidden offshore accounts. Imperial Oil Imperial Oil Ltd, Canada’s second-largest integrated oil producer and refiner, posted a 36.5% fall in quarterly profit, hurt by lower crude prices as well as weaker refining and marketing margins. The company, majority-owned by Exxon Mobil Corp, expects to spend about C$4bn ($3.2bn) in 2015, 29% less than 2014, and said it would closely monitor operating costs and capital investments. Imperial Oil joins a list of Canadian and US oil and gas producers who have scaled back capital spending plans for 2015, following a sharp decline in oil prices over the past six months. Crude prices have tumbled by more than half since June, with the average price for benchmark Brent in the October-December quarter down 30% from a year earlier. Imperial Oil’s net income also fell to C$671mn, or 79 Canadian cents per share, in the fourth quarter ended December 31 from C$1.06bn, or C$1.24 per share, a year earlier. Profit was, however, higher than the 76¢ per share analysts on average had estimated. The Calgarybased company’s revenue fell 4% to C$8.03bn. The company said total production fell 4% to average 315,000 barrels of oil equivalent per day. Synthetic crude selling prices fell 10.5% to an average of C$82.04 per barrel, while the average realized price for bitumen fell about 1.8% to C$52.37 per barrel. Imperial Oil said it had almost completed the expansion project at its Kearl oil sands mine in northern Alberta, and that it now expects start-up in the third quarter, roughly three months ahead of its previous forecast. Bitumen production from the project, which was recently opened, rose 27% to 66,000 barrels per day. About 47,000 bpd was Imperial’s share. However, that is much less than the mine’s capacity to produce 110,000 bpd, a mark it has often struggled to meet. The mine was shut for about three weeks in November after a “vibration issue” was detected in the facility’s ore-crushing unit. Gulf Times Tuesday, February 3, 2015 19 BUSINESS BA owner offers route pledge to Dublin in Aer Lingus bid Reuters London B IAG yesterday said it would offer legally binding commitments to continue using the slots operated by Aer Lingus between London’s Heathrow Airport and Ireland for five years ritish Airways’s owner committed to serving London to Ireland routes for five years yesterday in a bid to win backing from the Irish government for its takeover of partly state-owned airline Aer Lingus. Aer Lingus’s board last month recommended an improved €1.36bn ($1.5bn) offer from International Airlines Group subject to the agreement of its two largest shareholders, budget airline Ryanair and the Irish state. Under pressure from Aer Lingus’s trade unions and opponents in parliament, resistance is building within the government in Dublin to parting with its 25% holding, with worries that a takeover could reduce connectivity between Ireland and London. IAG said in a statement it would offer legally binding commitments to continue using the slots operated by Aer Lingus between London’s capacity constrained- Heathrow Airport and Ireland for five years. The offer appeared to fall short of demands made by Irish Prime Minister Enda Kenny, who said on Sunday that the suitor must provide some sort of “cast-iron permanent guarantee” on flights to Ireland for the government to even consider a bid. IAG said its proposals would offer a commitment from Aer Lingus that the government was not in a position to secure itself. “In seeking the support of the Irish government, we propose to offer it legally binding commitments that go well beyond the protections currently available to it,” IAG’s chief executive Willie Walsh said. A takeover would give IAG more take-off and landing slots at Heathrow, BA’s home base and a major European hub for international flights. IAG’s commitments, would be subject to Irish takeover rules and EU competition reviews, the British-based company added. The IAG statement did not address government concerns about possible job losses at Aer Lingus. Greece PM rules out aid from Russia, argues case in Europe Finance minister takes case to Paris, London; Germany’s Schaeuble rejects unilateral change to debt deal; new government vows to keep election promise to reject austerity Reuters Nicosia/London G reek Prime Minister Alexis Tsipras ruled out seeking aid from Russia and said yesterday he would pursue negotiations for a new debt agreement with European partners, but saw little sign of compromise from Germany. Tsipras and his finance minister Yanis Varoufakis are touring European capitals this week in a diplomatic offensive to replace Greece’s bailout accord with the European Union, European Central Bank and International Monetary Fund “troika”. After a tumultuous first week during which his left-leaning government made clear it intends to keep campaign promises to ditch the tough austerity conditions imposed under its existing bailout, the emphasis this week appears to be on maintaining that a deal is still possible. “We are in substantial negotiations with our partners in Europe and those that have lent to us. We have obligations towards them,” Tsipras said at a news conference in Cyprus during his first foreign visit as prime minister. “Right now, there are no other thoughts on the table,” he said, when asked whether Greece would seek aid from Russia, which has suggested it could be willing to listen to a request for support from Athens. The remarks on Russia could reassure EU partners shocked last week when the Tsipras government initially appeared to reject the bloc’s consensus on economic sanctions against Moscow. Greece eventually signed up last on Thursday to extending existing sanctions against Russia for six more months. Greece, unable to borrow on the markets and facing pressure to extend the current support agreement when it expires on February 28, is looking for a bridging agreement that would give it breathing space to propose a new debt arrangement. It has so far met a tough line from European partners, above all from Germany. German Finance Minister Wolfgang Schaeuble told Reuters in an interview yesterday that Berlin would not accept any unilateral changes to Greece’s debt programme. “We want Greece to continue going Greece’s Prime Minister Alexis Tsipras (left) with Cypriot President Nicos Anastasiades before a meeting at the presidential palace in Nicosia yesterday. Tsipras and his finance minister Yanis Varoufakis are touring European capitals this week in a diplomatic offensive to replace Greece’s bailout accord with the European Union, European Central Bank and International Monetary Fund. down this successful path in the interests of Greece and the Greeks but we will not accept one-sided changes to the programme,” he said at the Reuters Euro Zone Summit. Tsipras repeated calls already made by his finance minister Varoufakis for the mechanism of inspectors from the “troika” overseeing Greek finances to be dismantled and replaced by direct negotiations between Athens and its EU and IMF partners. “I believe that this would be a mature and necessary development for Europe,” he said. Germany responded that the troika controls were agreed as part of the bailout and should remain in place. “The German government sees no reason to scrap this mechanism of evaluation by the troika,” Finance Ministry spokeswoman Christiane Wirtz said in Berlin. To some degree, both sides are posturing ahead of what is certain to be difficult negotiations. The Greeks appear to be searching for more sympathetic ears first, before meeting the Germans. Varoufakis, a pugnacious economist who has likened EU austerity policies to “waterboarding”, has been arriving for meetings with besuited European leaders in a black coat and untucked, opencollared shirt. He began in Paris over the weekend, where the centre-left government is thought to be more sympathetic than others to the case for relaxing lending conditions. French Finance Minister Michel Sapin said after meeting Varoufakis that Athens could not expect a straight debt write-off, but left the door open to other options that include giving Athens more time for repayment. Varoufakis’s next stop was in London yesterday, where he was due to meet about 100 banks and financial institutions. A Greek government source said he planned to tell the private sector investors that they had nothing to worry about. “We will be able to service the Greek debt on terms that will have no detrimental impact on, especially private, bond holders,” said the source who spoke on condition of anonymity due to the sensitivity of the matter. Varoufakis also met British officials, seeking more European allies, although Britain is not a member of the eurozone. “It is clear that the stand-off between Greece and the eurozone is the greatest risk to the global economy,” Britain’s finance minister, George Osborne, said after their meeting. “I urge the Greek finance minister to act responsibly but it’s also important that the eurozone has a better plan for jobs and growth,” Osborne said. Today, Tsipras will meet Italy’s Prime Minister Matteo Renzi, another young centre-left leader who is thought to be among those most sympathetic to calls for leniency. He sees European Commission President Jean-Claude Juncker and French President Francois Hollande tomorrow. So far no date has been set for a meeting with German Chancellor Angela Merkel, although they will meet at a European summit on February 12. Exactly how much time Greece has to reach a deal with its creditors remains to be seen. In theory, there are only weeks left: once its bailout expires at the end of February, the European Central Bank could be obliged to pull the plug on funding for Greek banks. In practice, however, an alternative interim funding mechanism for the banks could possibly be found. After that, Greece has large debt payments due in March, although officials say it could have enough cash on hand to meet them, avoiding a crunch until later in the spring. Despite German resistance to the idea of a new deal on Greece, Tsipras said the tide of debate in Europe had been unexpectedly encouraging for Athens, with more and more backing for the idea of a change of direction in Europe. “I never expected that there would be such strong forces helping the new government create a new framework and set a new course, not only about Greece but Europe as a whole, because Europe is in a crisis,” he said. Spanish minister rejects easing debt rules for Greece Spain’s Budget Minister Cristobal Montoro yesterday rejected any notion of the European Union “changing the rules” over Greece’s bailout, noting Spain had respected similar austerity imposed by international creditors. The declaration came as members of Greece’s new leftist government toured European capitals to make a plea for renegotiating conditions attached to its €240bn ($270bn) rescue package. Though some countries have been sympathetic to the new Greek appeal for debt relief — with US President Barack Obama supporting the idea on Sunday — nations like Germany and Spain have insisted that Greece’s new Syriza-led government respect the deal signed by its predecessors. “Joining Europe is voluntary, and we belong to that club on the condition we respect the club’s rules, because it is in everyone’s interest we do so,” Montoro told Spain’s public television channel TVE. “Europe is not the European Commission, nor the European Central Bank. We are Europe — the countries that compose it — and we are the ones who established the rules.” Montoro said Greece needed to respect the reforms and austerity bailout terms Athens had agreed with international creditors “as we did”. He said it was too easy for new governments to come to power in times of economic pain with promises to increase spending that earlier leaders had renounced with long-term interest in mind. “We would all like to govern that way. But the question is, where will this money come from? From Greeks? From other Europeans? Who will be providing this money? That is the question,” he insisted. Spain’s ruling conservatives have credited their austerity programme for the return of modest growth after six years of brutal recession — a fiscal hardline the government has stuck to despite rising public discontent. But despite that revival in economic activity, unemployment in Spain remains at a dizzying 23.7%, and public services like education and health care have been hard hit by spending cuts. Both the government and opposition Socialists face an election-packed calendar in 2015 fraught with risk, as the hard-left Syriza-allied Podemos party continues to gain backing in Spanish opinion polls. ECB bond-buying plan has investors questioning how it works Bloomberg Frankfurt M ario Draghi’s trillion-euro puzzle is missing some key pieces. When the European Central Bank president announced a programme on January 22 to buy €60bn ($68bn) of assets a month for at least 19 months to avert deflation, he surprised investors with the size of the stimulus. He also provided more details than anticipated. Yet analysts poring over the ECB’s statements are finding that several critical points remain unclear. “The ECB had to present a lot of details right from the beginning as they wouldn’t have been credible without them,” said Johannes Gareis, an economist at Natixis in Frankfurt. “What is missing somewhat is the fine print, which might have quite an impact on the implementation.” Here’s what the ECB has and hasn’t revealed about Europe-style quantitative easing. What will the asset mix be? The ECB’s monthly spending will include its existing programmes to buy covered bonds and asset-backed secu- rities. Of the added purchases, Draghi said 12% will be debt issued by European Union institutions and agencies, and the rest will be government bonds. The question is: how much does the ECB envisage spending on each type of asset? Draghi also said officials will buy bonds with maturities from 2 years to 30 years, without specifying an average target that could affect yield curves and borrowing costs. And while the central bank said eligible debt includes inflation-linked bonds, floating-rate notes and securities with a negative yield, it hasn’t given any indication of what the breakdown of purchases might be. How transparent will the purchasing be? The ECB hasn’t said much about the mechanics of QE. When it bought sovereign debt from 2010 to 2012 under its now-halted, and far smaller, Securities Markets Program, it dipped into the market without prior announcement. ABS and covered-bond purchases are carried out by external asset managers. Those strategies contrast with the Federal Reserve, which issued a calendar for when it would make purchases under its QE programmes and what type of securities it would buy. A public calendar would “ensure greater transparency and minimize market distortion,” said Riccardo Barbieri Hermitte, chief European economist at Mizuho International Plc in London. How transparent will reporting be? The ECB said transactions “will be published in a weekly report which will list holdings at amortized cost by asset type.” That’s already the case for ABS and covered-bond buying. For the sovereign debt and agency bonds bought under QE, the ECB will also release a monthly report with the amounts held and the weighted-average remaining maturity by issuer residence. How will the ECB calculate its self-imposed limits? The central bank plans to hold a maximum of 33% of any country’s outstanding debt and less than 25% of any specific bond issue. What’s not clear is how it’ll measure that. One question is whether it’ll count the stock of short-term treasury bills as part of a country’s outstanding debt. If it does, that increases how much it can buy before it hits the 33% limit. How will the ECB treat Greece? Treasury bills are particularly important for Greece, where the ECB and euro-area central banks already own about €27bn of the country’s bonds. That’s 40% of its outstanding debt excluding treasury bills, but only 33% if the short-term debt is included. Which measure is chosen may be critical when SMP bonds mature this year, as it could allow the ECB to buy Greek debt and help reduce yields in the nation’s stressed economy. Even so, this is highly dependent on how Greece’s newly elected government behaves. Prime Minister Alexis Tsipras won power on a platform that includes restructuring the nation’s debt and rolling back reforms linked to its bailout package. Finance Minister Yanis Varoufakis said late Sunday in Paris that his country won’t take any more aid under its existing bailout agreement and wants a new deal with its official creditors. At the same time, the new government wants the ECB’s help to keep its banks afloat, he said, adding that he plans to travel to Frankfurt to meet with central bank officials. How will the ECB use the capital key? Bond purchases will be made in line with the ECB’s capital key, or roughly proportional to the size of each nation’s economy. That means the biggest share will be German debt, followed by French, then Italian, and so on. What is unknown is whether the capital key will apply to each month, or over the lifetime of the plan. Might the ECB choose to front-load purchases toward particular countries and, if so, which ones? In some nations, such as the Baltic countries, the stock of outstanding debt eligible for QE is small, meaning the national central bank might not be able to buy as much as the capital key allows. Will those countries be able to buy other national debt, or other asset classes such as covered bonds? One consideration is whether the ECB will let national central banks buy more than their capital key suggests by transferring unused allowances from other countries. “Much depends on how the ECB sees the use of capital keys as a flexible upper limit or as a fixed target,” said Lena Komileva, London-based chief economist at G Plus Economics Ltd How will QE be evaluated? While Draghi said QE will run through September 2016, he also said it’ll last until the central bank sees “a sustained adjustment in the path of inflation” toward the ECB’s goal of just under 2%. The rate was minus 0.6% in January, matching the weakest level in the single currency’s history. The day after the QE announcement, Executive Board member Benoit Coeure and Governing Council member Ignazio Visco said in Bloomberg Television interviews in Davos, Switzerland, that the programme will be extended if the results aren’t adequate. That begs the biggest questions of all: How will the ECB decide when enough is enough, and what will it do when that point is reached? The Fed ‘tapered’ its buying, reducing it over almost a year to ease out of QE as the US economy improved. “What matters are the criteria which will determine whether the ECB accelerates or tapers purchases and there is very little clarity about that,” said Richard Barwell, an economist at Royal Bank of Scotland Group Plc. “What was missing was the sense of urgency in Draghi’s personal pledge to bring inflation back to the target without delay.” Tuesday, February 3, 2015 BUSINESS GULF TIMES BANKING ON KNOWLEDGE New easing measures begin as bond yields fall on concerns of growth and inflation By Dr R Seetharaman The global bond markets had issues worth $350bn in 2015. The major issuers in 2015 include Federal Home Loan Mortgage, Kingdom of Spain, JP Morgan & Chase and KFW. The total issues were worth more than $3.77tn and $3.6tn in 2014 and 2013 respectively. Major conventional bond issuers in 2014 included European Investment bank, KFW and Republic of Italy. Treasury yields have been pushing lower since the beginning of this year, as negative yields in Europe and worries about the global economy sinking into deflation increase the appeal of US debt as a haven for investors. The GDP of the US expanded 2.6% in the fourth quarter, down from 5% in the third quarter, according to a preliminary government estimate released by the Commerce Department. A weaker-than- expected reading on US economic growth compressed yields and US 10 year treasury ended last week at 1.64%. Recently the US Federal Reserve as reiterated that it will remain patient in determining when to raise interest rates. A provisional reading on the eurozone’s rate of inflation showed it slipped further into negative territory in January, increasing investors’ fears about deflation. The yield on the German 10-year bund lowered to 0.301%, its lowest-ever closing by end of last week. The yield on the 10-year gilt, the United Kingdom’s 10-year bond, was at a low level of 1.330% by end of last week. As part of its Quantitative Easing in March 2015, the European Central Bank will become a substantial player in bond markets, buying €60bn of assets a month until at least September 2016, or longer if inflation does not rise. Most of this will consist of sovereign debt issued by countries in the eurozone, which can be close to €5tn. Debt of countries still in bailout programmes, such as Greece, can only be included if they comply with programme conditions and does not exceed a cap of 33% of debt issuance. If banks hold large sums of debt, the ECB may have a challenge in persuading them to sell bonds in exchange for cash when the cash deposit rate is negative. And if they do opt to sell then what they do with the proceeds will determine the success of the scheme. Part of the aim of the QE is that it encourages investment in riskier assets with higher yields, such as corporate bonds. But this will depend on commercial banks increasing their balance sheets and not simply leaving the proceeds with their national central banks. The alternative could be that the ECB approaches asset managers and buys their bonds. The global sukuk has been so far worth more than $1.5bn in 2015. The major Islamic bond issuers in 2015 are Dubai Islamic Bank and Federal of Malaysia. The global sukuk market had issues worth more than $46bn in 2014 and $43bn in 2013 respectively. The major Islamic bond issuers in 2014 include Islamic development bank, DanaInfra Nassional Bhd and Tenaq Nasional Bhd. In 2015 GCC bond issues so far are worth more than $1bn. The GCC conventional bond issues in 2014 exceeded $23bn and in 2013 it exceeded $18bn. In 2015, the GCC sukuk issues are close to $1bn. The GCC Sukuk issues in 2014 exceeded $18bn and in 2013 it exceeded $21bn. In 2015 Dubai Islamic Bank issued $1bn sukuk. The major conventional bond issues in 2014 were done by Emirate Investment Authority, Emirate of Abu Dhabi and Investment Corporation of Dubai. The Major sukuk issues in 2014 were done by Saudi Sovereign companies, Emirate of Dubai and National commercial Bank. Qatar Central Bank issued QR4bn Conventional bonds in June 2014, which included a new seven-year tranche for building a longer yield curve in the riyaldenominated bond market. It had issued QR4bn sukuks in April 2014, and issued QR 24bn sukuks and Conventional bonds in January 2014. At the end of last week Qatar 5 CDS was at 80.66 basis points, 5-year Dubai CDS was at 225.03 basis points, 5-year Abu Dhabi CDS was at 71.76 basis points, 5-year Saudi Arabia CDS was at 80.010 basis points and 5-year Bahrain CDS was at 282.550 basis points. Dr R Seetharaman is Group CEO of Doha Bank. The views expressed are his own. Obama proposes $3.99tn budget; $474bn deficit seen Reuters Washington Reuters Houston A P resident Barack Obama yesterday proposed a $3.99tn budget for fiscal year 2016 that sets up a battle with Republicans over programmes to boost the middle class that are funded by higher taxes on corporations and wealthy Americans. The budget foresees a $474bn deficit, which is 2.5% of US gross domestic product. It projects deficits stabilising at that rate over a 10-year period, senior administration officials said. Obama’s budget fleshes out proposals from his State of the Union address last month and helps highlight Democratic priorities for the last two years of his presidency and the beginning of the 2016 presidential campaign. But it is as much a political document as a fiscal road map and would require approval from the Republican-controlled Congress to go into effect. “There are going to be areas where we get big disagreements, but what I want us to focus on is the areas ... we have in common,” Obama said on NBC’s “Today” show. “And we’ll have some battles along the way, but there’s going to be a whole bunch of stuff that we can do that’s really productive.” The president is scheduled to speak about the budget at 11:55am EST (1655 GMT) from the Department of Homeland Security, a site the White House chose to emphasise its insistence that Republicans fund the agency charged with implementing his controversial executive actions on immigration. Republicans have said they see room for compromise in areas such as tax reform and infrastructure, but many of Obama’s programs, which were rolled out in the weeks before the budget’s release, have landed with a thud. “When ... he devotes his time and energy to talking about the new taxand-spend policies that progressives like and Republicans universally oppose, he signals to Congress that he is once again looking to argue rather than to legislate,” said Keith Hennessey, a former economic adviser to Republican President George W Bush. Democrats, however, viewed the budget as a statement of their priorities Refinery workers’ strike on 2nd day Customers purchase copies of President Barack Obama’s proposed 2016 budget at the Government Printing Office in Washington yesterday. The $3.99tn budget foresees a $474bn deficit, which is 2.5% of US gross domestic product. and a chance to demonstrate that they represent the party that champions middle-income Americans. “(It) affords him an opportunity to contrast his vision of helping the middle class with the Republican Congress’ approach of exacerbating inequality, ignoring the middle class and making the burdens of those who want to enter it even greater,” said Neera Tanden, president of the Center for American Progress, which has close ties to the White House. The budget achieves some $1.8tn in deficit reduction over the next 10 years, officials said, through healthcare, tax and immigration reform, but the forecast assumes Republican support for Obama’s programs, which is unlikely. Republicans have blocked immigration reform legislation in the House of Representatives, for example, and Obama’s budget assumes passage of such a bill. The administration foresees a continuation of the decline in unemployment, forecasting a rate of 5.4% in 2015. The rate currently stands at 5.6%. It also proposes a new infrastructure bank, a 6% increase in research and development, and a controversial consolidation of US government agencies. Obama has previously proposed combining trade agencies, but the proposal fizzled. The budget sets aside $14bn to strengthen US cyber-security defences after a spate of high-profile hackings. It calls for a one-time, 14% tax on an estimated $2.1tn in profits piled up abroad by companies such as General Electric and Microsoft, while imposing a 19% tax on US companies’ future foreign earnings. It proposes a 7% rise in US domestic and military spending, ending “sequester” caps with reforms to crop insurance programs and closing tax loopholes such as one on “carried interest.” Those moves would help fund investments in infrastructure and education. The budget would also reform rules governing trust funds and raise the capital gains and dividend rates to 28% from the current top rates of 23.8%. In foreign policy, the budget funds efforts to defeat Islamic State militants and support NATO and European allies against Russian aggression, the White House said. labour strike that some fear could impact gasoline production at several of the largest US oil refineries and chemical plants stretched into a second day yesterday, as union workers sought a new national contract. The walkouts at nine plants with a combined 10% of US refining capacity were the first since 1980 in support of a nationwide pact that would cover 63 refineries. Contract talks broke down on Sunday with workers asking for higher wages against a backdrop of crude prices that have plunged nearly 60% since June, prompting oil companies to cut spending. One of the affected plants, Tesoro Corp’s 166,000-barrelper-day Martinez, California, refinery, was being fully shut down, since part of it was already in the midst of planned maintenance work. The other refineries were running mostly as usual as operators initiated contingency plans, calling on trained managers as replacement workers. While refiners are promising little or no disruption to production, wholesalers and other buyers are skittish and snapping up available supplies. “In the short term, the strikes are definitely driving prices up,” said Phil Flynn of Price Futures Group in Chicago. US gasoline and diesel fuel prices rose yesterday on concerns over supply, as well as a slight bounce in US benchmark crude to about $49 a barrel. Gasoline futures traded in New York rose more than $0.05 to $1.53 a gallon, though retail gasoline prices are still at their cheapest levels in years after having fallen about 40% since the middle of 2014. The United Steelworkers union (USW) said Royal Dutch Shell, the lead industry negotiator, halted negotiations early Sunday after the union rejected a fifth proposal from the company. Shell said it would like to restart talks. US consumer spending weakest since 2009; inflation muted Reuters Washington U S consumer spending recorded its biggest decline since late 2009 in December, with households appearing to save the extra cash from cheaper gasoline, which could support future consumption. Other data yesterday showed factory activity slowed in January, suggesting economic growth continued to cool early in the first quarter. The Commerce Department said consumer spending, which accounts for more than two-thirds of US economic activity, fell 0.3% after a 0.5% gain in November. It was the largest drop since September 2009 and reflected big declines in spending on both durable and nondurable goods. When adjusted for inflation, consumer spending was the weakest since last April. In a separate report the Institute for Supply Management said its national factory activity index fell to 53.5 last month from 55.1 in December. A reading above 50 indicates expansion in the manufacturing sector. US stocks were trading lower on the reports. Prices for US government debt fell and the dollar eased against a basket of currencies. The spending data was included in Friday’s fourth-quarter gross domestic product report, which showed the economy growing at a 2.6% annual pace, with consumer spending rising at a brisk 4.3% rate — the fastest since 2006. Despite ending 2014 on a weak note, lower gasoline prices and a firming labor market are expected to provide a huge tailwind to consumer spending in the first quarter. “This all bodes well for consump- tion growth in early 2015,” said Paul Diggle, an economist at Capital Economics in London. Households have so far used much of the extra income from cheap gasoline to pay down debt and boost savings, according to economists. Gasoline prices have plunged 43% since June, according to US government data. In December, income at the disposal of households after accounting for inflation increased 0.5%, the largest rise since last March. The saving rate rose to 4.9% from 4.3% in the prior month. Lower gasoline prices put a damper on price pressures in December, with key inflation gauges slipping further below the Federal Reserve’s 2% target. A price index for consumer spending fell 0.2% after a similar decline in November. In the 12 months through Decem- ber, the personal consumption expenditures (PCE) price index rose 0.7%, the weakest reading since October 2009, slowing from a 1.2% increase in November. Excluding food and energy, prices were unchanged for a second straight month. The so-called core PCE price index increased 1.3% in the 12 months through December. While the Fed has repeatedly said it viewed the oil-driven decline in inflation as transitory and expected inflation to move back to its target, some economists say benign price pressures could see the US central bank delaying a much- anticipated mid-year interest rate increase. “We continue to think it will be hard for the Fed to remove ‘patient’ from their policy language in March, thus signaling a June tightening,” said Michelle Girard, chief economist at RBS in Stamford, Connecticut. The price sign outside the Costco shows gas selling for below $1.90 per gallon in Westminster, Colorado. US consumer spending recorded its biggest decline since late 2009 in December, with households appearing to save the extra cash from cheaper gasoline, which could support future consumption. FORMULA 1 | Page 3 CRICKET | Page 5 NFL | Page 8 Hamilton close to £60mn deal with Mercedes Clarke ready to play under captain Steven Smith Patriots win Super Bowl thriller over Seahawks Tuesday, February 3, 2015 Rabia II 14, 1436 AH FOOTBALL GULF TIMES SPORT Messi hits winner as Barca keep up pressure on Real Page 10 FOCUS Qatar surge ahead to make history on home ground From 20th in 2013 to second in 2015, Qatar has grown by leaps and bounds Q atar made history by becoming the first country outside Europe to ever reach the final of a men’s handball world championship – but were in the end unlucky against France who stopped them from going all the way on Sunday. Before the 24th Men’s Handball World Championship, Qatar had never defeated a European team in a competitive match. Slovenia became their first European victims in the group phase, in the eighth-final Austria were defeated, in the quarter-final Germany had to bite the dust, and Poland became the fourth team to be beaten by the new Qatari team, who qualified for the final by de- feating the Poles 31-29 in the semi-final in the Lusail Multipurpose Hall. And in the final they were on eye level with European, Olympic and now again world champions France. Until the 55th minute the team of head coach Valero Rivera had gold in sight, finally the more experienced French side decided the final. But a silver medal is quite a change compared to the last World Championship two years ago in Spain, when the Qataris finished 20th. On their way to the final the home team only lost one match. The decisive match for first place in their preliminary group against Spain was lost 28:25, but still Qatar ended up in the final, while the Spaniards, defending world champions from 2013, had to play for bronze instead. A strong goalkeeper duo played a great part in Qatar’s success. Danijel Saric and Goran Stojanovic supported each other brilliantly over this competition. If one of them happened to have an unlucky day, Rivera could without worries send in the second. Rivera closely missed his second straight gold medal after having led Spain to the winners’ podium two years ago. But their next target is already in sight: to qualify for the 2016 Olympic Games in Rio. In October Qatar will be hosting the Asian qualification event – and after their outstanding performance at the World Championship they are the clear favourites. Additionally, they have also already qualified for the 25th World Championship in France. Qatar 2015 All Star The IHF Analysing Team at Qatar 2015 consisting of Frantisek Taborsky (Czech Republic), Paul Landure (France), Zoltan Marczinka (Hungary) and Dietrich Spate (Germany) have nominated the following players for the Qatar 2015 All Star Team. Goalkeeper: Thierry Omeyer (FRA) Left wing: Valero Rivera (ESP) Left back: Rafael Capote (QAT) Centre back: Nikola Karabatic (FRA) Right back: Zarko Markovic (QAT) Right wing: Dragan Gajic (SLO) Line player: Bartosz Jurecki (POL) Most Valuable Player: Thierry Omeyer (FRA) 2 Gulf Times Tuesday, February 3, 2015 QATAR 2015 FOCUS Minogue and Cruz close Qatar 2015 S o how did the French players celebrate after winning their fifth handball world title? Among other things, they had a singalong with Australian singing star Kylie Minogue. Minogue was in Doha yesterday to perform after the 24th Men’s Handball World Championship final between France and Qatar and not only mesmerised those in attendance, but was equally impressed with her Doha crowd. “WHOAH.... That was so much fun!!! Thanks Doha, we loved it!” the 46-year-old tweeted with a picture of her coming off the stage after her performance. She then posted another picture with the world championship winning French team with the caption: “Congratulations France!!! Thanks for the singalong!!!” Other international music artists, who performed on the final day on Sunday, were Taio Cruz and Mani Hoffman. Earlier, a capacity crowd in Lusail Multipurpose Hall saw the curtain fall on the 24th Men’s Handball World Championship on Sunday, as Qatar dazzled the world once again with an incredible closing ceremony. Apart from marking the end of Qatar 2015, the closing event functioned as a symbolic handover to France, who will host the next men’s World Handball Championship in 2017. Sheikh Saoud hails Qatar’s wise leadership QNA Doha Q atar Olympic Committee (QOC) secretary general HE Sheikh Saoud bin Abdulrahman al-Thani (pictured) congratulated and expressed blessings to HH the Emir Sheikh Tamim bin Hamad al-Thani and HH the Father Emir Sheikh Hamad bin Khalifa al-Thani over the great success of the 2015 Men’s Handball World Championship, which concluded in Doha on Sunday, due to the support of the wise leadership. In a press statement, Sheikh Saoud said that the tournament has succeeded in all aspects organisationally and technically, thanks to the distinguished leadership of the Organising Committee chairman HE Sheikh Joaan bin Hamad al-Thani, who made a great effort to make the World Championship a grand success. The successful organisation of the Men’s Handball World Championship confirms Qatar’s readiness to host the 2022 FIFA World Cup. HE Sheikh Saoud congratulated Qatar Handball Association (QHA), technical and administrative officials, players of Qatar national team on finishing second in the tournament. Instagram/kylieminogue Instagram/kylieminogue Instagram/kylieminogue Instagram/kylieminogue QNB honours Qatar handball team Qatar National Bank (QNB) yesterday held a reception to honour the Qatar handball team who took the second position in the 2015 Men’s World Handball Championship. The team, who are sponsored by QNB, cut a cake to mark the occasion where players were presented gifts by QNB officials. Qatar finished second behind France in the prestigious tournament which concluded on Sunday. Gulf Times Tuesday, February 3, 2015 3 SPORT SPOTLIGHT HIGHLIGHT Hamilton close to signing £60mn Mercedes contract ‘We are in talks and in the near future it will be sorted. We have to make sure it works for both of us. They want to continue with me and vice versa but it’s been like that for ages’ Lewis Hamilton adds to impressive Mercedes mileage in pre-season testing AFP Jerez W orld champion Lewis Hamilton returned to work yesterday, further piling up the mileage for Mercedes in the first round of Formula One pre-season testing. Hamilton drove 73 laps by 1200 GMT, with more likely to come later in the day, after Nico Rosberg had chalked up an impressive 157 laps on day one Sunday. Mercedes dominated the past season, winning 16 of the 19 races, 11 of them from Hamilton who beat Rosberg for the world title. Hamilton’s three-year contract expires after the season but neither he nor Mercedes are in a hurry to sign a new deal because both want an extension. “We want to stay together. We love each other, basically,” Hamilton was quoted as saying in Jerez, and team boss Toto Wolff said that “we want him to stay and he wants to stay.” Talks were reportedly held Sunday and it is believed that a contract renewal, until 2018, would be finalized before the March 15 season-opener in Australia. Sebastian Vettel meanwhile led the timesheets again as the four-time world champion posted 1 minute 20.984 seconds from 31 laps until noon after already dominating Sunday. Hamilton had a fastest lap of 1:22.490 by mid-day to rank ahead of Dutch teenager Max Verstappen in a Sauber. Vettel’s successor at Red Bull, Russian Daniil Kvyat, damaged his front wing early in the morning and - with no spare part set to arrive until much later in the day, set back the preparations of the former champions. Jenson Button had a mere five laps as he was encountering “a recurring problem,” according to McLaren, on his first day, after new team-mate Fernando Alonso could only drive six laps Sunday. Eight teams are at the first of three rounds of pre-season action which runs until tomorrow. Pastor Maldonado drove for Lotus who missed Sunday’s action. Not present in Jerez are Force India who aim to start their testing in mid-February in Barcelona. McLaren waiting for sponsors before changing their livery, says Ron Dennis McLaren will change the livery of their new Formula One car when there are commercial reasons for doing so, group chief executive Ron Dennis said after the MP4-30 made its track debut in southern Spain. The former champions have lacked a title sponsor since telecoms giant Vodafone withdrew at the end of 2013 and they turned up for the first pre-season test at Jerez with unbranded trucks and a car painted silver, black and red. The livery seen so far has not impressed many fans, who had hoped for something bolder at the start of a new partnership with Honda, on social media. Dennis told reporters that there had been discussions within the team, who have not won a race since 2012, but they would not change without reason. “This is the livery of McLaren,” he said. “It has always been a combination of these colours and it will only change for commercial reasons.” IN DISARRAY Mercedes AMG Petronas F1 Team’s British driver Lewis Hamilton stops in the pit on the second day of the Formula One pre-season tests at Jerez racetrack. By Paul Weaver The Guardian L ewis Hamilton had talks with Mercedes’ executive director, Toto Wolff, at Jerez on Sunday and is believed to be close to signing a £60mn three-year deal that would tie him to the team until the end of 2018. The Formula One world champion’s existing contract does not expire until the end of this year but a fresh deal is expected to be finalised before the season gets under way in Melbourne on 15 March. Hamilton said on Sunday: “We want to stay together. We love each other, basically.” Niki Lauda, Mercedes’ nonexecutive chairman, added: “There is no problem with the contract. He wants to sign it. We want him to sign it. There is no rush. We just need to find a time to do it and then all the speculation can go away.” Last year it was thought Mercedes were about to offer him something less than his current salary, which is about £20mn. But that is difficult now, because Hamilton had the best season of his life to beat off the challenge of his teammate, Nico Rosberg, and win his second world title. Hamilton added: “We are in talks and in the near future it will be sorted. We have to make sure it works for both of us. The confidence we give each other is that they want to continue with me and vice versa but it’s been like that for ages. “Last year there was excitement at one point to get it done around Russia [in October] but I said: ‘Guys, this is the most important period of my life. I don’t want to think of anything else.’ “Contracts and stuff can be as stressful as anything, so I was telling them all I wanted to do was win the championship. So I said: ‘Let’s leave it to the end. I’m not speaking to anyone else and I know you’re being called by a certain individual but “Contracts and stuff can be as stressful as anything, so I was telling them all I wanted to do was win the championship. So I said: ‘Let’s leave it to the end. I’m not speaking to anyone else and I know you’re being called by a certain individual but I’m solely focused on things, so I won’t be making any calls.’ So they said they would make sure it was not a distraction” I’m solely focused on things, so I won’t be making any calls.’ So they said they would make sure it was not a distraction.” Fernando Alonso last year identified Mercedes as the best team to help him win a third world crown but he joined McLaren from Ferrari on a three-year deal and will not be around to challenge for a seat at Mercedes in the near future. Hamilton, who is managing his own affairs, said: “[McLaren’s chairman and chief executive] Ron Dennis is a very smart man. He would never sign Fernando for one year and Honda would never do that either.” Hamilton is aiming for a third championship that would pull him level with his hero Ayrton Senna. He said: “The greats had three championships. I’ve always said since I joined Formula One that I wanted to emulate Ayrton. And I know there is no other team that could give me a greater opportunity.” Hamilton, 30 last month, said the Sports Personality of the Year award he won in December “meant more to me than any other trophy or award”. He added: “I can honestly say that I didn’t have any trophies in my apartment in Monaco, at all. But I brought that one home and put it on my mantelpiece. It’s the first trophy I’ve had at home in the whole of my career, apart from when I lived at my parents’ house. I put it up the other day. Knowing it was the public that voted was what really hit me.” Champion Vettel leaves confusing legacy at Red Bull BOTTOMLINE Ferrari Formula One racing driver Sebastian Vettel of Germany. MotoGP ready for India: Ezpeleta “It’s different, Formula One is another aspirational level. Motorbikes are something very popular in India and are much closer to normal people,” Ezpeleta told Reuters in an interview Reuters Mumbai M otoGP is ready for a foray into India convinced it has a better future than Formula One in the world’s second largest motorcycle market, the sport’s commercial chief Carmelo Ezpeleta said yesterday. India first hosted a Formula One grand prix in 2011 to positive reviews from the global community but was dropped from the calendar after the third race in 2013. Problems over taxation, with Formula One classified as entertainment rather than a sport in India, as well as the considerable bureaucracy in bringing equipment into the country have been seen as obstacles to the race returning. Calling India a “very, very important market” for MotoGP, Ezpeleta, the chief executive of Dorna Sports, which holds the television and commercial rights leta told Reuters in an interview. “We need to focus on different things here like we have no (local) promoter. But the cost of organising a MotoGP race is less than Formula One and we have a manufacturer in Mahindra who are participating in the Moto3 world championship. “I think we are putting all our first steps right to be successful in India but nothing is easy from the beginning.” to the sport, was hopeful they had the right mix to be successful in India, which is the world’s second largest motorcycle market after China. “It’s different, Formula One is another aspirational level. Motorbikes are something very popular in India and are much closer to normal people,” Ezpe- MAHINDRA ENTERS India’s leading utility vehicle manufacturer Mahindra is entering the 2015 Moto3 world championship as a constructor and will supply motorcylces to four teams, including former MotoGP rider turned team owner Jorge Martinez’s Aspar team. “We need three things to be successful in a country like India. First a manufacturer being part of the deal and in this case we have Mahindra,” Ezpeleta said. “Secondly, we need to have Indian riders but unfortunately we have none presently and for that we have the Asian talent Cup. And finally we need to have a grand prix.” Weekend MotoGP races feature regularly on television channels in India, which is crucial for the promotion and popularity of the sport in the country, feels Ezpeleta. Although satisfied with MotoGP’s growth in recent years, Ezpeleta believes Asia has a lot more potential. “We have a lot of demand for grand prix all around the world especially from Asia and we are talking to different countries here,” he said. The 2015 MotoGP season will have 18 races and the target for the promoters is to increase it to 20 in the next two years. Reuters Jerez R ed Bull have taken inspiration from one of Sebastian Vettel’s old helmets to confuse Formula One rivals seeking a clear picture of their aerodynamic secrets in pre-season testing. The former champions, now without Vettel after the German moved to Ferrari, have been testing at the Jerez circuit in southern Spain with a car painted in black and white ‘camouflage’ livery. Team principal Christian Horner said Vettel had worn a helmet with a similar dazzle design at last year’s Italian Grand Prix and the team thought it would be interesting to extend the concept to the whole car. Horner, who had said last week that the team were rushing to get the Renault-powered car ready for Jerez, promised the livery would be “even stronger” for the first race in Australia on March 15. “Everybody works away over the winter and once the new cars come out, then everybody is looking at what everyone else has been up to,” Red Bull designer Adrian Newey told Sky Sports television. “If we can help to disguise that a little bit and conceal some of the shapes we’ve developed over the winter, then that prevents them getting as good a knowledge of our shapes as they might do otherwise. “How much difference it makes, we’ll see. But it’s something different.” Newey repeated his view that champions Mercedes, who won all but three races last year, would be hard to beat this season and said the regulations favoured the engines over aerodynamics. “I think Mercedes should win it, frankly. They have a power advantage and certainly in this relatively engine-dominated formula, then that puts them hugely ahead,” he said. “Can we make enough of a difference on the chassis to mount a challenge? I think it will be extremely difficult but we will obviously do our best. A bit more freedom on the chassis regulations would make that more viable.” Red Bull won three races last year and finished as overall runners-up. 4 Gulf Times Tuesday, February 3, 2015 CRICKET FOCUS Johnson hits back at Morgan’s ‘no pressure on England’ claims ‘I think they are dreaming if they think they are not under pressure. Every team is going to be under pressure, you’ve got to win pretty much every game, that’s how I see it’ By Chris Stocks theguardian.com A ustralia’s Mitchell Johnson has hit back at Eoin Morgan’s claims that England will not be under pressure during the countries’ opening World Cup match in Melbourne later this month, saying the Irishman is “dreaming” if he thinks otherwise. Morgan, speaking after Johnson’s return of three for 27 powered Australia to a 112-run victory in the tri-series final in Perth, attempted mind games ahead of the 14 February date with the tournament co-hosts when he said: “I think the pressure builds on Australia. They’re the home side at a World Cup playing against a dangerous side. We’re going out all guns blazing. There’s no pressure from our point of view.” Those words left Johnson distinctly unimpressed. The fast bowler, whose efforts in his first game this year helped Australia to an eighth win in nine oneday internationals against England, said: “I think every team is under pressure, it is a World Cup. I think they are dreaming if they think they are not under pressure. Every team is going to be under pressure, you’ve got to win pretty much every game, that’s how I see it. “Our plan is to win every game. There will probably be a little more pressure on us being a home World Cup but we are prepared for that.” Asked if he felt he had a psychological hold over England, Johnson, who took 37 wickets to inspire Australia to a 5-0 Ashes whitewash last winter, added: “It was a final – there is a lot of pressure in a final. “It feels nice to do it to any team, to be honest. My job is to go out and try to bowl fast, be aggressive and take wickets. So I was pretty close to that. That’s what really excites me. “Now we’ve won the final, we move on and focus on the World Cup. We’ve got them first game.” Johnson’s short ball is a potent weapon in his fast-bowling armoury. He set Moeen Ali up on Sunday with a bouncer before taking the England opener by surprise with another that saw him depart for 26. The death of Phillip Hughes, Johnson’s Australia teammate, last November after a freak injury sustained by a short-pitched delivery during a Shef- field Shield match in Sydney briefly changed perceptions about its use. But Johnson has stated he has worked through whatever issues that tragedy had on his approach and is now back to his aggressive best. “I’m a fast bowler who likes to bowl fast,” he said. “I don’t mind bowling that short ball—that’s always what I’ve tried to do in all formats of the game. “It’s probably changed a little since Phil. Everyone was a bit funny about it at first. But it’s part of the game. I’m still going to bowl short balls, that can set up a wicket for me. I think it is still important, a very big part of the game. I’ll continue to bowl it.” Johnson, when prompted for a reason why he was now so at ease with roughing up batsmen again, said: “It’s just been time, really. I’ve just let myself go and over time I’ve just felt better and better so hopefully I’m feeling better at the right time for the World Cup.” The Queenslander will hope to continue his hot streak against England not only in the World Cup but also in next summer’s Ashes series. One man who will hope to be fit and ready to partner Johnson in England is Ryan Harris after it was announced that the 35-year-old seamer will be rested for the remainder of the Australian domestic season. The injury-prone Harris has been rested for the World Cup and Cricket Australia have mapped out a plan to get him 100 percent fit for the Ashes tour that involves him training with the performance squad before setting off for the UK in June. Harris, who will miss Australia’s two-Test tour of the Caribbean earlier that month, has been a key performer for Australia in the past two Ashes series, taking 24 wickets in at 19.58 in England in 2013 and another 22 at 19.31 during last winter’s whitewash. Pat Howard, Cricket Australia’s performance manager, said: “With Ryan, our number one priority is to ensure he is 100 % fit and available for this winter’s Ashes series.” Harris said: “I want to play as much cricket as I can as I know you are a long time retired but I recognise this is the best approach to ensuring I am absolutely right for the Ashes. “I have huge ambitions to help us win a series in the United Kingdom and that goal is something that will drive me on over the coming months.” Australia fast bowler Mitchell Johnson (left) celebrates after dismissing England captain Eoin Morgan during Sunday’s Tri-series final in Perth. (Reuters) Leg injury rules Pakistan pacer Junaid Khan out of World Cup Pakistan’s World Cup hopes were dealt a major blow yesterday with frontline paceman Junaid Khan ruled out of the event after failing to pass a fitness test following a leg injury. The 25-year-old left-armer, considered one of the country’s most promising prospects in recent years, sustained a thigh injury in training last month that forced him out of the team’s current tour of New Zealand. “Junaid appeared in a fitness test and was not found fit enough to play the World Cup,” a Pakistan Cricket Board (PCB) spokesman said. His absence means Pakistan’s attack will be led by the relatively inexperienced Mohamed Irfan, following the losses of veteran paceman Umar Gul to a knee injury and ace spinner Saeed Ajmal, who is serving a suspension for chucking. All-rounder Mohamed Hafeez meanwhile faces a race against time to get his action cleared. He was suspended in November last year and will participate in a reassessment test on Feb 6. Junaid was included in the 15-man squad last month but he will now likely be replaced with another seam bowler Bilawal Bhatti, a newcomer to international cricket. Pakistan play the second and final one-day against New Zealand today before leaving for Australia where they play their first World Cup game against defending champions India in Adelaide on February 15. Junaid had suffered a knee injury in October and was sidelined for two months. He returned to field in the domestic Pentangular one-day Cup and performed well enough to get selected for the World Cup. Junaid said he was saddened but wished his colleagues well. “It’s a heartbreak for me,” said Junaid. “I couldn’t pass the fitness test and am not able to play the World Cup. All my prayers are with the team.” Pakistan’s bowling attack is now set to be the least experienced among major teams in the tournament, with four rookies if Bhatti is picked. SPOTLIGHT Seven-foot Irfan targets standout World Cup AFP Wellington P akistan paceman Mohamed Irfan aims to make an impression both on the field at the World Cup as well as off it, which isn’t hard for a man who stands at seven feet one inch. “I know people notice me because of my height and I always try to oblige them by posing for a photograph,” Irfan said yesterday. “I will be ready to pose with fans in Australia and New Zealand but will remain focused on my job—to bowl my team to victories until we win the World Cup.” When Irfan toured South Africa with the Pakistan team early in 2013, fans were desperate to have a photo with the tallest-ever international cricketer. “It was big fun,” remembers 32-year-old Irfan. “I had no qualms as I am very down to earth and when people request a photo, wanting to compare their height against mine it becomes more fun for me.” On the field, however, Irfan’s top priority remains to unsettle batsman. “It (the World Cup) is a big event and every player has a desire to play,” said Irfan. “I want to do what Wasim Akram did for Pakistan in the 1992 World Cup.” Akram anchored Pakistan’s only World Cup title in Australia and New Zealand 23 years ago, finishing as the player of the tournament with 18 wickets. Pakistan captain Misbah-ul Haq is confident that Irfan can provide the X-factor on the fast, bouncy tracks of Australia. “Saeed Ajmal’s absence has weakened our bowling,” said Misbah of the ace off-spinner who had to withdraw from the event because of an illegal bowling action. “But I am confident that with his height Irfan can be the X-factor for us.” Irfan knows his strengths which come as a result of his imposing size. “It feels good that I perform for Pakistan. It’s my greatest desire to do well for Pakistan so that people remember me with good words when I finish my career.” His giant stature makes him a dangerous bowler as each ball is released from a height rarely experienced by batsmen. If pitched short, the batsman needs to tackle it with a jump and if pitched full, it requires guile to dig it out. But it hasn’t always been an easy ride for Irfan. He used to find it difficult to get a pair of shoes to fit while finding a bed to cater for him was just as frustrating. In his younger days, people on the streets would make fun of this gentle giant. Unable to make a breakthrough in the sport, Irfan once made ends meet by working in a pipe factory, earning just 300 rupees (30 dollars) a week. “I had quite a few problems because of my height,” recalls Irfan. “It was problematic sleeping at home, whatever kit I used to bring was not fit and I didn’t get proper sized shoes. But since playing for Pakistan these problems have been sorted out.” Team managers on tour, however, still have to make sure hotels supply special beds. When Irfan was selected for the tour of England in 2010, it was a dream come true, but things didn’t go his way. He was instantly discarded as someone “not ready for international cricket” after failing to get a single wicket in his first two one-day internationals. But his career was revived two years later and on the tour of India in December 2012 and South Africa he became an instant hit. Irfan took 11 wickets in Pakistan’s 3-2 defeat in South Africa and cemented his place in the team as spearhead of the attack. But medical experts warn his unique body requires proper handling. He played in most of the matches in Pakistan’s series against South Africa in the United Arab Emirates late in 2013 and was left seriously injured. He missed both the Asia Cup and World Twenty20 in early 2014. But extra work in the gym and close attention by medical staff helped him stage a comeback in the New Zealand series and he was Pakistan’s best bowler with nine wickets in the 3-2 defeat. Pakistan fast bowler Mohamed Irfan (left) walks from the field with teammate Ehsan Adil after the end of Pakistan’s innings in the first ODI against New Zealand at Westpac Stadium in Wellington on Saturday. Pakistan lost the match by seven wickets. (AFP) Gulf Times Tuesday, February 3, 2015 5 CRICKET FOCUS Clarke ready to play under captain Smith tional. I speak to all my teammates regularly.” Clarke was forced to bow out after the first Test against India in December with the serious hamstring injury, and Smith filled in as captain for the three remaining Tests. AFP Sydney A ustralian skipper Michael Clarke, battling to regain fitness from hamstring surgery and chronic back pain, said yesterday he would be prepared to play under the captaincy of young gun Steve Smith. Amid reports that the team prefers the stand-in skipper who has had a sensational summer at the crease ahead of the World Cup, Clarke insisted his relationship with his teammates was exceptional. And asked on Triple M radio if he would play under Smith’s leadership, the 33-year-old replied: “Most definitely I would.” Clarke said he had already been in Smith’s position himself. “I feel for Smithy because I sat in his shoes when a lot of the media were calling for (former captain) Ricky Ponting (to go). “It’s certainly not personal between Smithy and I. We’ve been friends for a long time and we’ll continue to be.” “The people that sit above both him and I will make their decisions,” Clarke said. “Whatever they feel are the best 11 players, “We’ve been friends for a long time and we’ll continue to be. The people that sit above both him and I will make their decisions. Whoever they feel is the best captain for the team then they’ll pick that” Michael Clarke (right) says he is prepared to play under current skipper Steve Smith (left). they will pick that 11. “Whoever they feel is the best captain for the team then they’ll pick that.” Clarke did his best to bat away reports on Fairfax media that the players prefer the laidback Smith, who is eight years his junior. “I’d like to know where it’s coming from,” he said. “It’s obviously disappointing because I haven’t been around the team ... for the last seven weeks now I’ve been away from the group. “I feel like my relationship with Cricket Australia , especially my teammates, is excep- Smith last week capped a remarkable season by sweeping the main awards at the annual Allan Border Medal ceremony, including Australian player of the year. Cricket Australia has given Clarke until Australia’s second pool match against Bangladesh on February 21 to prove his fitness for the World Cup. He hit 51 for his local Western Suburbs team on Saturday in his first comeback game, including two fours and a six, and said medical staff considered his recovery was ahead of schedule. Clarke is now set to play for a Cricket Australia XI in a practice one-dayer against Bangladesh in Brisbane on Thursday. Australia head for World Cup on top of ODI rankings Australia will enter the World Cup next week on top of the world rankings following their convincing 112-run tri-series final victory over England in Perth on Sunday. The victory means they currently hold a six-point advantage over second-placed India, who also featured in the series. India, the defending World Cup champions, are a point clear of South Africa. With a number of ODI series concluding in recent days—the second and final match between New Zealand and Pakistan is set to be played today, with the Black Caps holding a 1-0 lead following their seven-wicket win in Wellington on Saturday. A victory for sixth-placed New Zealand would see them reduce England’s lead to two points, while a win for seventh-placed Pakistan would level the series 1-1 and reduce the gap on the Black Caps to three points. The World Cup takes place in Australia and New Zealand from February 14 until March 29. Rankings: 1. Australia 120pts, 2. India 114, 3. South Africa 113, 4. Sri Lanka 109, 5. England 104, 6. New Zealand 101, 7. Pakistan 96, 8. West Indies 94, 9. Bangladesh 75, 10. Zimbabwe 53, 11. Afghanistan 41, 12. Ireland 34 SPOTLIGHT Asian teams confident despite bookmakers predicting otherwise ‘Never write India off, they will always be formidable in one-day cricket. This side is capable of repeating 2011’ In Rohit Sharma, the only batsman with two 200s in one-day internationals, Virat Kohli, Suresh Raina and skipper Mahendra Singh Dhoni, India possess destructive batting firepower to tame the world’s best attacks. Petition filed in Pak court for life ban on Aamer A petition was filed in a Pakistan court yesterday demanding a lifetime ban of disgraced paceman Mohamed Aamer after he was cleared last week to return to domestic cricket. Aamer was given permission to play domestic cricket by the Anti-Corruption Unit of the International Cricket Council (ICC), bringing him a step closer to redemption for his part in one of the most scandalous episodes in modern cricket. But a petition filed yesterday at the Sindh High Court by lawyer Rana Faizul Hasan called for the 22-year-old to be banned for life to stop him damaging the image of Pakistan and cricket. “Aamer stained the image of the country,” Hasan said. “He is a proven fixer and will do it again if he is allowed to play.” The court issued notices to the deputy attorney general and Pakistan Cricket Board (PCB) for a hearing on February 16. Aamer was one of three Pakistani players banned from the game for at least five years for arranging no-balls to order in a Test against England at Lord’s in 2010. He was also jailed in Britain in 2011, along with former captain Salman Butt and Mohamed Asif. Aamer’s ban was due to expire on September 2, 2015, but the ICC used its discretionary powers to allow him to return to domestic cricket early. Disappoined to miss out on World Cup: Yuvi, Gambhir IANS New Delhi O AFP Melbourne C onventional wisdom says Asian teams usually succumb on the bouncy wickets of Australia or the seaming pitches in New Zealand, making them vulnerable and rank outsiders for the World Cup. Co-hosts Australia and New Zealand, alongside the mighty South Africa, are the bookmakers’ favourites to win one-day cricket’s biggest prize, with Asian teams way down in the pecking order. But those already writing off Asia’s big three—India, Pakistan and Sri Lanka—will do so at their own peril. And not just because of the unpredictable nature of the limited-overs game. The only other time the tournament was held Down Under, in 1992, it was Pakistan which won the title beating England by 22 runs in the final at the Melbourne Cricket Ground. Australia did not even make the knock-out rounds, while the Kiwis, like the South Africans, crashed out in the semi-finals. Home advantage clearly does not count for much. Defending champions India are the only team to have won the World Cup on home soil, while Sri Lanka won it in Pakistan as co-hosts of the 1996 event. Barring major upsets, like in 2007 when India and Pakistan were knocked out in the first round, Asia should have three teams—even more if Bangladesh, Afghanistan or the United Arab Emirates cause an upset—in the quarter-finals. After that, three victories will ensure a team the title—a task easier said than done but one that gives the eight qualifiers a reasonable shot at the title. Kapil Dev, under whom India won its first World Cup in 1983 by shocking overwhelming favourites West Indies at Lord’s, said picking a winner was not easy. “Once you enter the quarter-finals, anything can happen,” Dev said. “Every team has a chance, including the ones from Asia. It all depends on how you play on that day. But if a side has to have an off-day, it better be during the first round where one can recover. Can’t afford that in the knockouts.” “Once you enter the quarterfinals, anything can happen. Every team has a chance, including the ones from Asia. It all depends on how you play on that day. But if a side has to have an offday, it better be during the first round where one can recover. Can’t afford that in the knockouts” In 2011, India and Sri Lanka finished second in their respective groups and yet entered the final as pool A winners Pakistan fell in the semi-finals and pool B leaders South Africa went out in the quarter-finals. While India, Pakistan and Sri Lanka have the batting to take on the rest, much will depend on how their meagre bowling resources are able to contain the opposition. Sri Lanka, finalists on the last two occasions, boast the top three rungetters in one-day cricket among those still playing in Kumar Sangakkara, Mahela Jayawardene and Tillakaratne Dilshan. Sangakkara and Jayawardene, members of an exclusive club of five batsmen with more than 12,000 one-day runs, are in top form to raise hopes of making their last World Cup appearance a memorable one. World bowling record-holder Muttiah Muralitharan believes this could be Sri Lanka’s World Cup after coming so near in 2007 and 2011. “We have been just about the most consistent side around in major tournaments over the past decade, regularly reaching semi-finals and finals,” Muralitharan told the tournament’s official website. “I have faith this group of players can achieve the dream again and I hope they have that faith too.” Pakistan, faced with bowling suspensions of Saeed Ajmal and Mohammad Hafeez due to faulty actions, will look to make amends through their batting which includes captain Misbah-ul Haq, Younis Khan and Shahid Afridi. “If we play to our potential, we can win,” said Misbah, whose 56-ball hundred against Australia last year equalled Viv Richards’ record for the fastest Test century. “The boys are focused on achieving the best result. They have the hunger and passion to work for it.” In Rohit Sharma, the only batsman with two 200s in one-day internationals, Virat Kohli, Suresh Raina and skipper Mahendra Singh Dhoni, India possess destructive batting firepower to tame the best attacks. “Never write India off, they will always be formidable in one-day cricket,” said former skipper Sourav Ganguly. “This side is capable of repeating 2011.” ut-of-favour batsmen Yuvraj Singh and Gautam Gambhir, integral members of India’s 2011 World Cup-winning side, yesterday said they were disappointed at being ignored for the team chosen for the 2015 edition of the tournament. Indian selectors decided to favour youngsters while selecting the team at the expense of senior players Yuvraj, Harbhajan Singh, Virender Sehwag, Zaheer Khan, Gambhir, Ashish Nehra and Munaf Patel. “It was disappointing not being picked for the World Cup. It’s a decision which you can’t help,” Yuvraj said at a cricket conclave in New Delhi. The left-handed batsman also said that his main focus is to score the maximum runs for his state side Punjab. “At the moment, I am focusing on the Ranji Trophy and putting in my best efforts to make a comeback,” Yuvraj said. Opener Gambhir, also left-handed, expressed his dejection at missing the bus for the World Cup starting on February 14, but said he still has the hunger to score runs and succeed at cricket’s topmost level. “I play cricket to score runs and win matches. I am still passionate about winning matches for India, my state team Delhi or any Twenty 20 franchise,” Gambhir said. “I am disappointed on not being part of the team for this World Cup. We are the defending champions and it is a proud feeling. I definitely would have wanted to be part of this tournament.” 6 Gulf Times Tuesday, February 3, 2015 SPORT FOCUS Budding footballers set to arrive for Al Kass Cup By Sports Reporter Doha S ome of the world’s best young footballers will arrive in Qatar this week for the launch of the 2015 Al Kass International Cup, beginning on Thursday. Twelve elite academy teams including Real Madrid, Paris Saint-Germain, Arsenal and Juventus will compete in the U-17 tournament to be held at the Aspire Academy’s outdoor football pitches. The impressive line-up of players means football fans in Doha will get the chance to watch some of the world’s finest young talents in action during the 10-day competition that will also feature Qatari youngsters. The acclaimed Aspire Qatar team including 2014 competition winners Aspire International will compete against clubs from Spain, Japan, South America. Aspire Zone Foundation CEO Khaled Abdullah al-Sulaiteen expressed his strong belief that the tournament will provide an opportunity for Qatari players to enhance their skills and gain international experience. “It is a great honour and privilege to be welcoming some of the world’s very best young footballing prospects to Doha for the fourth edition of the Al Kass International Cup,” he said. “This tournament presents a tremendous opportunity for young players to display their abilities and prove themselves at the very highest level. Our U-17 Aspire Academy students will gain valuable experience playing in a competitive tournament in front of a passionate home crowd at the Aspire Zone,” he added. Participating teams are expected to arrive in Doha over the coming days and local fans can look forward to group stage games between some of the world’s best football clubs. On the first day of the competition, Arsenal will face Japanese team Vissel Kobe while Schalke 04 and AC Milan will play against Aspire International and Argentinian outfit River Plate, respectively. Official tournament sponsor Al Kass TV will be broadcasting all games live both online and on TV with Arabic and English commentary. Looking forward to another exciting tournament, Essa Abdulla al-Hitmi, chairman of the Organizing Committee of Al Kass International Cup, said: “Following on from the huge success of last year’s competition, Al Kass look forward to showcasing all the action in 2015 to football fans all over the world. “In just three years, the Al Kass International Cup has cemented its place as one of the premier youth football tournaments globally. This year we will continue to build on this reputation with world-class broadcasting of the outstanding displays of football that we have come to expect from the Al Kass International Cup.” Al Kass International Cup will also be further proof of Qatar’s ability to host world-class sporting events after the hugely successful 2015 World Handball Championships, said Hassan Abdulla al-Thawadi, Secretary General of the Supreme Committee for Delivery and Legacy. “Since its launch in 2012, the Al Kass International Cup has given the footballing stars of tomorrow the chance to shine on an international stage, whilst achieving various goals and ambitions for the state of Qatar,” al-Thuwadi said. “With such an impressive array of teams competing in 2015, we are confident that this tournament will yet again exceed expectations and confirm this country’s deep relationship with football,” he added. HE Sheikh Hamad bin Khalifa bin Ahmad al-Thani, president of the Qatar Football Association, said: “The 2015 edition of the Al Kass International Cup HORSE RACING is sure to excite football fans looking for a glimpse of what to expect from some of the world’s most beloved clubs.” “The 10-day competition will also provide an opportunity for local players to nurture their talents by going head-to-head with some of the world’s top youth teams. “For this reason we are proud to be supporting such a tournament which will not only aid the development of this country’s up and coming football talents, but also the football community as a whole,” he concluded. Thursday’s Fixtures Arsenal vs Vissel Kobe (16.30, Aspire Pitch 4); Schalke 04 vs Aspire International (18.35, Aspire Pitch 4), AC Milan vs River Plate (20.40, Aspire Pitch 4) UNIVERSITY LEAGUE ExxonMobil Qatar extend support for Gold Sword Race The prominent event in the Qatar racing calender will see the best local bred Pure Arabians race for top honours and a chance at winning QR1.5 million in prize money It’s QAC vs QU for title By Sports Reporter Doha Q atar Aeronautical College (QAC) and Qatar University (QU) will clash in the final of the University League after winning their respective semi-final matches against Northwestern University in Qatar (NU-Q) and College of the North Atlantic Qatar (CNA-Q), respectively. University League is a collaboration between Qatar Football Association (QFA) and Qatar Foundation for Education, Science and Community Development (QF), bringing together 12 universities and colleges from across Qatar to take part in the four-month long soccer tournament. QAC and QU will compete for the title at 7 pm on February 12 at Qatar Foundation, Pitch 3. The third place decider will take place ahead of the final match, at 6pm, where Northwestern University Qatar (NU-Q) will take on College of the North Atlantic Qatar (CNA-Q). A gala dinner will be held at Qatar Foundation’s Recreation Centre in Education City following the awards ceremony that will honour the winning teams and best players. The special awards are: Best Player, Best Goalkeeper, Top Scorer, and Fair Play Team. The champion of this year’s league will receive a cash prize of 40,000 Qatari Riyals, while the second and third place teams will receive 30,000 Qatari Riyals and 20,000 Qatari Riyals, respectively. Mansoor al-Ansari, Secretary General at Qatar Football Association (QFA), said: “We are very excited to watch QAC and QU compete next weekend at the University League final and are eager to crown the champions during the closing ceremony. “QFA would like to congratulate the teams who made it to the final stages of the tournament and thank all the teams that participated in this year’s league. Organising this tournament with QF showcases both organisations’ commitment in nurturing the football culture in Qatar, especially amongst the youth.” Mohammed al-Naimi, Director of Community Affairs at Qatar Foundation, added: “Qatar Foundation has a dedicated mission to unlock human potential, committed to providing the resources and tools to the community to demonstrate their skills, talent and sporting endeavors in line with QF’s goal to promote healthy and active living. “The University League has been a great showcase for students to display their talents and, in doing so, foster community spirit participating in a great sporting tournament.” Last year’s competition was won by Qatar University, while the University of Calgary and Qatar Aeronautical College came second and third, respectively. VOLLEYBALL LEAGUE QREC Chairman HE Sheikh Mohamed bin Faleh al-Thani (second from right) shakes hands with President and General Manager of ExxonMobil Qatar, Alistair Routledge, after signing the sponsorship agreement at the Qatar Racing and Equestrian Club yesterday. QREC general manager Sami Jassim al-Boenain (right) and Exxonmobil’s vice-president and director of Government and Public Affairs Saleh al-Mana are also seen. PICTURE: Juhaim By Sports Reporter Doha E xtending its long-standing support of the Qatar Racing and Equestrian Club (QREC), ExxonMobil Qatar is once again the exclusive sponsor of the 2015 Qatar Gold Sword Race, taking place on February 5. This prominent event will see the best local bred Pure Arabians race against one another for top honours and a chance at QR1.5 million in prize money. This event is the precursor to the blue riband of the season, HH The Emir’s Sword. HH Sheikh Mohamed bin Khalifa al-Thani owned Assy (Amer-Margouia) was the winner of the ExxonMobil Qatar-sponsored Qatar Gold Sword in 2014. Then Assy went on to create history by winning HH The Emir’s Sword and becoming the first local bred pure Arabian to complete a glorious double by winning the two coveted events of the season. The press conference highlighting ExxonMobil’s extended sponsorship of Qatar Gold Sword Race was attended by QREC Chairman HE Sheikh Mohamed bin Faleh al-Thani, President and General Manager of ExxonMobil Qatar Alistair Routledge, and QREC General Manager Sami Jassim al-Boenain. ExxonMobil Qatar’s ongoing sponsorship of the pivotal race speaks volumes to its commitment to this historically significant element of Qatari heritage, while also emphasizing the important role horse racing and equestrian events continue to play today in Qatar. ExxonMobil Qatar and the Racing and Equestrian Club share a long-term relationship, which is based on mutual respect and understanding, and we are proud to continue our support for the Club and the Qatar Gold Sword Race this year,”. President and General Manager for ExxonMobil Qatar Inc, Alistair Routledge, said “Under the leadership of Sheikh Mohamed bin Faleh, and thanks to the efforts of Sami al-Boenain and the entire management of the Racing and Equestrian Club, the Qatar Gold Sword Race has undoubtedly become one of the most anticipated and prestigious events in Qatar’s sports calendar.” “The Qatar Gold Sword Race showcases a significant part of Qatar’s heritage … the tradition of equestrian excellence … and equestrian competition continues to play an important role in Qatar today. “Most importantly, the event helps put Qatar on the world stage, and we are always proud to be involved in initiatives which profile Qatar as a global destination for hosting first-class sporting events.” “ExxonMobil’s presence in Qatar goes beyond our core industry of energy development—it is ultimately about supporting the country as it moves toward achieving its long-term objectives, as outlined in the Qatar National Vision 2030. “One of the ways we do this is by supporting this thriving society. This means delivering sustainable, long-term development for the benefit of Qatar’s people, while preserving the country’s unique heritage. Thank you for this opportunity. We look forward to another exciting race this year,” Routledge concluded. The QREC chairman HE Sheikh Mohamed expressed his appreciation to ExxonMobil Qatar. “ExxonMobil Qatar and QREC share a long and fruitful partnership”, he said. “We thank ExxonMobil Qatar for its ongoing support for horse racing in Qatar, which serves to strengthen and protect a sport fostered by our forefathers. It is our hope that events like the prestigious Qatar Gold Sword Race further elevate the status of horse racing excellence not only in Qatar, but also throughout the region and around the world.” ExxonMobil Qatar shares Qatar’s view that elevating the country’s status in the international sports arena helps highlight opportunities for long-term investments in the country and further strengthens Qatar’s role as an international business and investment hub. Events like His Highness The Emir’s Sword, Qatar Gold Sword Race, the Qatar ExxonMobil Open, and the 2022 FIFA World Cup all add prominence to Qatar’s position in the global sports arena, enhancing its reputation as a sporting capital of the world. QREC general manager Sami Jassim alBoenain was excited at the prospect of another exciting contest this year. “We saw Assy win this contest last year in an exciting finish. I am sure that this year also we will get to witness a great and thrilling contest. The quality of the Local Bred Pure Arabians has vastly improved and one can expect to see racing at its best in this prestigious race. “Assy later went on to win HH The Emir’s Sword in an open class race which proves that Qatar is best when it comes to breeding top class Pure Arabians. My best wishes to all the owners, trainers and jockeys event who will be a part of the coveted. Action from yesterday’s Qatar Volleyball League clash between El Jaish (brown) and Al Gharafa at the Al Arabi Sports Club. Jaish won 3-1 (25-19, 25-19, 17-25, 25-19) Police beat Al Wakrah 3-1 (22-25, 25-23, 26-24, 25-23) in the other match of the day. After losing the first set, the cops fought back to clinch the next three. PICTURES: Najeer Sha Gulf Times Tuesday, February 3, 2015 7 SPORT SPOTLIGHT GOLF McIlroy’s Dubai Desert Classic win fuels Masters hopes Koepka wins his first PGA title in Phoenix ‘I feel like I can keep this run of form going and there’s no reason why I shouldn’t’ W By Ewan Murray The Guardian Rory McIlroy of Northern Ireland poses with the winner’s trophy after the final round of the Dubai Desert Classic. (Reuters) R ory McIlroy has cause to enter the high court in Dublin today with a spring in his step after claiming the Dubai Desert Classic. McIlroy, who is involved in a multimillion-pound dispute with his former management company, proved again how such affairs have not impacted on his professional life with a second win at the Emirates Club. He had a final round of 70 for a 22-under-par aggregate, ensuring a three-shot success over Alex Noren. A fascinating spell for the Northern Irishman awaits. His high-profile legal battle aside, he will head to the United States for what will most likely be three tournament appearances before the Masters. Should he prevail at Augusta National in April, McIlroy will have achieved a full set of major championship successes at the age of just 25. McIlroy has now been priced up as short as 6-1 to take the Masters title, which is an acknowledgement of his current touch. “I’ll keep it ticking over,” McIlroy said. “It will be nice to get back in the States, get in my own house and get into a routine of practice and stuff. I don’t mind that the Masters is still a couple of months away. I feel like I can keep this run of form going and there’s no reason why I shouldn’t. I’m comfortable with my game. I’m happy with how I’m swinging it and just a matter of keeping on top of things and not getting complacent and working hard. “That was the objective coming to the Middle East just after the new year. I wanted to get at least one win going heading to the States and getting into the sort of big part of the season. It’s great to get that win and coming off a good performance in Abu Dhabi as well, I have got some confidence and momentum on my side heading into the next couple months.” McIlroy laughed when the subject of his upcoming court appearance was raised. “Let me enjoy this for a couple of hours,” he replied. He was fully entitled to offer that response. McIlroy rarely looked troubled or under pressure during day four in Dubai. Stephen Gallacher completed a fine defence of the title he had won in 2013 and 2014, finishing third. Martin Kaymer signed for a 64 to form part of a five-way tie for fourth. Graeme McDowell and Lee Westwood were among those to share ninth. “I did what I needed to do,” said McIlroy, who had finished second in his previous three European Tour appearances. “It wasn’t the best round that I’ve played this year but I got the job done and that’s the most important thing. “It’s not a bad thing, I guess, finishing second, but it’s not really what you want. I had chances to win and wasn’t able to cap- italise on a couple of them. I sat here on Wednesday saying that I didn’t want to finish second any more, and it’s nice to be able to get the victory and sort of back up what I say with my performance on the course.” McIlroy, asked whether he is at the peak of his powers, said: “It’s definitely the most con- sistent. I haven’t had a run like this before … Am I at the peak of my powers? I’d like to think that I could still get better. I’d like to think that I can still improve in certain areas. But right now I’m very happy with where my game is, and as I said, I feel like each week I turn up, I have a chance to win.” Reuters Scottsdale, Arizona ell-travelled American Brooks Koepka used an eagle-three at the 15th hole to jump ahead of a crowded leaderboard and win the Waste Management Phoenix Open by one stroke on Sunday for his first PGA Tour victory. The 24-year-old Koepka, who broke into professional golf in Europe, rolled in a 51-foot putt from the fringe short of the green at the par-five 15th to vault over four players. Koepka, ranked 33rd in the world, carded a five-under-par 66 for a total of 15-under-par 269, one better than Masters champion Bubba Watson (65), 22-year-old Japanese Hideki Matsuyama (67) and American Ryan Palmer (66). “It feels amazing,” said Floridian Koepka. “The last few weeks I put in a lot of hard work, changed my putting stroke completely and everything seems to be going right.” Scotsman Martin Laird, the 54-hole leader, was tied with Koepka until he bogeyed the driveable par-four 17th with his first three-putt after going 95 consecutive holes without one. Laird then found water with his drive at 18 and took a double- bogey to register a 72 for 12-under, a total shared by Spanish amateur and Arizona State student Jon Rahm, who closed with a 68. The self-assured Koepka, who claimed his first European Tour victory at the Turkish Airlines event in November after winning four times on the European Challenge Tour, began the round three shots behind Laird. It was Matsuyama who made the first charge. Matsuyama, who was three back, got off to a flying start when he holed out from a sandfilled divot in the fairway 129 yards from the cup for an eagletwo at the first hole to reach 12-under. Birdies at the third and fifth lifted Matsuyama, who won last year’s Memorial Tournament, into a tie with Laird at 14-under, and a birdie at the par-five 13th gave the Japanese a one-shot lead. One hole later there was a three-way tie for first at 14-under and another hole later it was four-way tie with Palmer joining Matsuyama, Laird and Watson. Then Koepka rolled in his eagle putt to vault into first at 15-under, a total matched by Laird with a birdie at the same hole before the Scotsman unravelled at the end. Koepka has now shot par or better in all 12 rounds on the tour this season. Brooks Koepka holds the trophy after winning the Waste Management Phoenix Open at TPC Scottsdale in Scottsdale, Arizona, on Sunday. (AFP) TENNIS Djokovic relishing win after ‘physical crisis’ AFP Melbourne Newly crowned Australian Open champion Novak Djokovic of Serbia kisses the Australian Open trophy along the Yarra river in downtown Melbourne. (AFP) N ovak Djokovic feels in the prime of his career with more Grand Slams beckoning after winning a gripping Australian Open final in which he overcame ‘a physical crisis’. The Serb ironman showed why he remains the world number one with an energy-sapping 7-6 (7/5), 6-7 (4/7), 6-3, 6-0 win over sixth seed Andy Murray on Sunday evening. He has now won all five of his Melbourne Park finals and said it was perhaps the most satisfying of his eight Grand Slam titles. “I think it has deeper meaning, more intrinsic value now to my life because I’m a father and a husband,” he said. “It’s the first Grand Slam title I won as a father and a husband and I just feel very, very proud of it.” Djokovic added that as his life was changing off court, he was learning to appreciate the big wins more than ever. “I try to stay on the right path and committed to this sport in every possible way... and try to use this prime time of my career really where I’m playing and feeling the best at 27,” he said. “This is why I play the sport, to win big titles and to put myself in a position to play also for the people around me. “As my life progresses, there are circumstances, situations, events that define these beautiful moments. “Getting married and becoming a father in the last six months was definitely something that gave me a new energy, something that I never felt before. “And right now everything has been going in such a positive direction in my life. So I try to live these moments with all my heart.” Only Australian Roy Emerson, who presented Djokovic with the trophy, has won more Australian Opens with six in the 1960s. Found the strength Djokovic has now beaten Murray in three of his four Australian final appearances following earlier wins in 2011 and 2013, but the Serb admitted it was a huge struggle to down the Scot. He hurt the thumb on his racquet hand when he fell in the first set then appeared to cramp in the second set and again in the third. But after trailing by a break and looking wobbly on his feet and gasping for breathe early in the pivotal third set, he roared back to win 12 of the last 13 games to claim the title. “It was very physical, very exhausting. We both of course went through some tough moments physically,” he said. “You could see that I had a crisis end of the second, beginning of the third. “I just felt very exhausted and I needed some time to regroup and recharge and get back on track. That’s what I’ve done.” There were suggestions by the media that it was theatrics to throw Murray off his game, but the Serb denied this. “I went through a physical crisis in the matter of 20 minutes. And, honestly, I didn’t feel that too many times in my career,” he said. “Even though I went through this moment, I believed that I’m going to get that necessary strength. I’m going to have to earn it, and that’s what I did.” He now trails only Roger Federer (17), Rafael Nadal (14), Pete Sampras (14), Emerson (12), Rod Laver (11), Bjorn Borg (11) and Bill Tilden (10) on the all-time Grand Slam leaderboard. ATP contemplates giving Guillermo Vilas 1970s number one spot The ATP is mulling the possibility of belatedly granting Argentina’s Guillermo Vilas a number one spot in the 1970s, which Vilas himself has long demanded and the tour had long denied. “It would be very important for tennis, this is a very serious matter,” an ATP source told dpa during the recent Australian Open. The ATP is assessing detailed documents intended to prove that the world rankings were wrongly calculated and that Vilas was world number one at some point in the 1970s. “It looks plausible, this is great work,” the ATP representative said. He added, however, that it would take a long time to go over all the documents that have already reached ATP headquarters at Ponte Vedra Beach, Florida. “No decision has been made, it is important to stress that. But we are looking into the documents,” the ATP source said. The case of Vilas, 62, is similar to that of Australia’s Evonne Goolagong, 63, whom the WTA granted the 1976 number one spot 31 years late, after confirming that there had been a miscalculation. Goolagong expressed her support for Vilas. “I wish him the best of luck, I think this is a player who really deserved to be number one. I hope they confirm that,” she told dpa in Australia. Vilas won four Grand Slam tournaments - two editions of the Australian Open, one French Open and one US Open - and he was one of the stars of 1970s and 1980s tennis, with a total of 62 titles. Unlike players in his generation such as Bjorn Borg, John McEnroe, Jimmy Connors and Ivan Lendl, however, he never made it officially to the top spot in the game, and he only made it to second place. 8 Gulf Times Tuesday, February 3, 2015 SPORT SUPER BOWL XLIX Patriots euphoric after Super Bowl despite ‘Deflategate’ ‘Every year if you’re privileged to get to this game, hard things happen. I’m so proud of (Tom) Brady and (coach Bill) Belichick for handling things the way they did. I love them. And all our Patriots fans should feel very good’ MY BAD... Carroll shoulders blame for Seahawks Super Bowl defeat Seattle Seahawks head coach Pete Carroll. AFP Glendale, Arizona H Quarterback Tom Brady (left) of the New England Patriots and teammates celebrate victory over the Seattle Seahawks in Super Bowl XLIX. Reuters Glendale, Arizona T he New England Patriots rallied to beat the Seattle Seahawks on Sunday in what will go down as one of the greatest Super Bowls of all-time but who the real winner is could well be debated for decades to come. The buildup to the Super Bowl had been dominated by a controversy over deflated footballs used by the Patriots in a blowout win over the Indianapolis Colts in the AFC title game that earned them a trip to Arizona. A whiff of scandal continued to hang over Sunday’s game even as the Vince Lombardi Trophy was hoisted and confetti fell from the roof of the University of Phoenix Stadium still trembling from New England’s heart-stopping win. “We won that (AFC) game 45-7, we won today 28-24,” defended a defiant Patriots owner Robert Kraft through the celebratory din. “Our people didn’t touch the balls. I love our team, I’m proud of our guys. “We’re going to carry on and hopefully continue to do well. “Every year if you’re privileged to get to this game, hard things happen. I’m so proud of (Tom) Brady and (coach Bill) Belichick for handling things the way they did. “I love them. And all our Patriots fans should feel very good.” As the NFL’s investigation into “Deflategate” continues, the spotlight of suspicion remains firmly fixed on the Patriots with some fans even questioning why New England was allowed to play in the Super Bowl at all. The controversy has dominated the sport headlines for two weeks and left stains on one of the NFL’s most successful franchises and two possible future Hall of Famers quarterback Brady and coach Belichick. In the 20 years since Kraft bought the franchise, the Patriots have made the playoffs an eyebrow-raising 15 times and played in seven Super Bowls winning four. BRADY MILESTONES A battling Brady spent Sunday rewriting the Super Bowl quarterbacking record books, setting new marks for singlegame completions (37), most career passing yards (1,605) and career touchdowns (13) to claim a third most valuable player award. “It’s just a lot of mental toughness, I think the whole team had it,” said Brady when asked how the team was able to deal with the controversy and focus on the game. “Coach always says, ignore the noise and control what you can control.” But the Patriots and Belichick, the only coach to take a team to six Super Bowls, have also developed a reputation as a team not above a bit of skullduggery. In 2007, Belichick was fined $500,000 and the Patriots lost a first-round draft pick after an investigation found New England had videotaped an opponent’s signals on the sidelines in what became known as ‘Spygate’. ‘Deflategate’, however is unlikely to take any of the air out of the Super Bowl party and parade in Boston where the team will return home to a hero’s welcome. “Congratulations to Patriots and all of Patriot Nation on a well earned Super Bowl victory. You have made Boston and New England proud - cue the duck boats!” said Boston mayor Marty Walsh. He would lay out plans on Monday for a celebratory parade featuring the city’s signature “duck boats”, amphibious vehicles dating back to World War II. The game represented a last chance for the NFL to put a scandal-scarred season behind it, and the Patriots and Seahawks did their part, providing a game that produced edge-of-the-seat excitement. “I’m not really concerned about that (controversy),” said Belichick. “I’ve already spoken on that, so I am not going to have anything to add to it. “I’m happy for our team. We won. I think our team deserved to win. “We won tonight in a tough game. I don’t know what more we need to do. “This team deserves to be champions.” ead coach Pete Carroll shouldered the blame Sunday after the Seattle Seahawks let Super Bowl history slip through their grasp. The Seahawks, seeking a second straight Super Bowl crown, fell 28-24 to the New England Patriots—with a late interception sealing their fate as Carroll opted not to turn to superstar running back and team talisman Marshawn Lynch in the crucial moment. Trailing 28-24 with 26 seconds remaining, the Seahawks faced second-and-goal from the one yard line. But Carroll didn’t call a play for the NFL’s most dominant running back, counting on him to surge through for a touchdown and the victory. Instead, quarterback Russell Wilson threw a slant pass intended for Ricardo Lockette—and the unheralded Patriots cornerback Malcolm Butler intercepted it. “I told those guys, that’s my fault totally,” said Carroll, adding he and Wilson could barely speak in the moment. “We just looked at each other trying to realize the gravity of what we just witnessed,” Carroll said. “We didn’t say very much.” Lynch gained 102 yards on 24 carries before Carroll denied him a 25th. “I know you have a million questions about this, and I’ll answer them,” Carroll said, explaining that he thought the Patriots defense was expecting a play for Lynch, and that he could lull them with a pass “really to kind of waste that play.” “I told those guys, that’s my fault totally,” said Carroll, adding he and Wilson could barely speak in the moment. “We just looked at each other trying to realize the gravity of what we just witnessed,” Carroll said. “We didn’t say very much” The Seahawks missed out on a scintillating final drive, which very nearly gave them the kind of stunning come-from-behind victory they achieved in the NFC championship game against Green Bay. “When they called the call, I just trusted it like I always do,” Wilson said. “We were thinking about throwing the ball, scoring a touchdown right there.” Seahawks cornerback Richard Sherman called it an “unfortunate” play. “Their guy made a heck of a play,” Sherman said. “We gave ourselves a chance to win, that’s all you can ask for.” “At the end of the day, if we didn’t give ourselves a chance to win and play up to our potential, then you could be more disappointed,” he added. Gulf Times Tuesday, February 3, 2015 9 SPORT SPOTLIGHT / SUPER BOWL HIGHLIGHT Last play will linger but Brady’s class showed in Pats’ win Seattle’s Matthews goes from shoe store to Super Bowl stud New England quarterback Tom Brady won the MVP despite throwing two interceptions largely because of his four touchdown passes and 37 of 50 passing for 328 yards Seattle Seahawks wide receiver Chris Matthews (right) carries the ball after a catch defended New England Patriots cornerback Brandon Browner (left) during the third quarter in Super Bowl XLIX at University of Phoenix Stadium. Reuters Glendale, Arizona S New England Patriots quarterback Tom Brady (centre) celebrates his team’s win over the Seattle Seahawks in the NFL Super Bowl XLIX football game in Glendale, Arizona. Reuters Glendale, Arizona S eattle Seahawks head coach Pete Caroll won plenty of praise for his brave decision making in the NFC Championship win that took his team to the Super Bowl but was facing the heat after Sunday’s loss to the New England Patriots. Just as they did against the Green Bay Packers two weeks ago, the Seahawks had come back from a slow start, finding their rhythm on offense and it looked as if a second straight Super Bowl win was on the cards. Despite being the second-best throughout the first two quarters, Seattle went in level 14-14 at half-time, thanks again to Carroll’s positive approach. With six seconds remaining in the half, many teams might have settled for a field goal but the Seahawks used the opportunity to the full - with Russell Wilson finding Chris Matthews with an 11-yard touchdown pass. But few will remember that call after the strange decision at the end of the game which practically gifted the win to the Patriots. Trailing by four and on second down, a yard from goal, the most obvious decision would have been to hand the ball to Marshawn Lynch, who having put up 102 yards on 24 carries, was averaging 4.3 yards per carry. Instead Carroll went for a pass play and quarterback Russell Wilson’s attempt to reach Ricardo Lockette with a low zipped pass turned into disaster as undrafted rookie corner Malcolm Butler showed brilliant anticipation and agility to make the interception. It was game over and to most observers and the millions watching on television, it was an inexplicable decision from Carroll. “There’s really nobody to blame but me, and I told them that clearly,” said Carroll. “And I don’t want them to think anything other than that. They busted their tails and did everything they needed to do to put us in position, and unfortunately it didn’t work out,” he said. Carroll’s explanation was that with New England’s goal-line defense on the field and his wide-receiver set, it made no sense to run the ball on that play—especially with the option of running on third or fourth down. Arguments over that logic and the decision that it prompted will no doubt rage for weeks but it would be unfair if that crucial call became all that was remembered of what was a great game. New England quarterback Tom Brady won the MVP despite throwing two interceptions largely because of his four touchdown passes and 37 of 50 passing for 328 yards, but also because of the way he managed the Patriots offense. The Patriots have a relatively small receiver corps and their value, especially in the slot, was amply evident throughout. Julian Edelman was a livewire throughout, as he put up 109 yards on nine receptions with Shane Vereen adding 64 yards receiving and Danny Amdendola contributing another 48 yards. The last offensive drive from the Patriots, which concluded with a three-yard Brady touchdown pass to Edelman was New England at their very best. All nine passes were completed as Brady took the team 64 yards in four minutes 50 seconds and the quarterback chose four different receivers on his march down the field. While Seattle, with Wilson’s mobility and awareness vital, showed plenty of offensive potency themselves they were rarely able to match the smoothness of Brady’s offense. ‘TOM DID A GREAT JOB’ “Our offensive line did a great job. Tom did a great job. Our receivers made a lot of tough catches and tough yards. That’s what you’ve got to do against a team like Seattle. They don’t give anything easy,” said Patriots coach Bill Belichick. While Carroll fronted up to his decisionmaking he also noted the quality of the opponent his team had been beaten by. “They had two great drives and they controlled the ball going down the field. Really we didn’t make any major mistakes, they just really played well enough to get the ball down the field. Tom did a great job to engineer the win. That’s it, they’re a great football team. They played like they were capable of playing.” eattle Seahawks wide receiver Chris Matthews was working in a shoe store a year ago but on Sunday he was putting together an MVP-worthy performance in the Super Bowl that was spoiled by the New England Patriots. The unheralded wide receiver entered the National Football League’s championship game without a career reception but put together the game of his life. “I don’t care if I don’t even have one pass, one yard, one tackle, it wouldn’t have mattered to me as long as we had won the game.” said Matthews, who played only 26 offensive snaps this season entering the Super Bowl. “I would have been happy with a win with no stats.” Undrafted out of college, Matthews bounced around for a few teams, including in the Canadian Football League, and was never able to stick on a roster. He was out of football and working for Foot Locker, an American sportswear and footwear retailer, when he got the call from Seattle. Matthews initially told them he did not finish work until later that night and could not make the tryout but his agent convinced him to get on a plane. The decision changed his life. With Seattle trailing 7-0 midway through the second quarter, Matthews jumped and twisted around to complete an incredible Matthews was out of football and working for Foot Locker, an American sportswear and footwear retailer, when he got the call from Seattle. Matthews initially told them he did not finish work until later that night and could not make the tryout but his agent convinced him to get on a plane. The decision changed his life 44-yard catch that put Seattle at the Patriots’ 11-yard line. Three plays later, Marshawn Lynch scored a game-tying touchdown. Then, when it appeared the Patriots would take a lead into halftime, Matthews found himself on the receiving end of an 11-yard touchdown pass that tied the score at 14-14 with two seconds left in the half. Three plays into the third quarter Matthews was at it again as he hauled in a 45-yard Russell Wilson pass that set up a goahead field goal to make it 17-14. Seattle went on to build a 24-14 lead but were unable to hang on as the Patriots scored two touchdowns to pull ahead and sealed the win after intercepting a Russell Wilson pass in the end zone. Matthews finished Sunday’s game with four receptions for 109 yards. “I just think the coaches prepared me in the best possible way they can in practice,” said Matthews. “Making sure that I was well prepared for what was to come, regardless of whether it was this year, next year or the year after that.” NHL Penguins shut out by Predators, 4-0 NBA Melo’s 31 helps Knicks beat Lakers DPA Los Angeles C armelo Anthony caught fire, and the Los Angeles Lakers never heated up. Anthony dropped in 18 of his 31 points in the third quarter Sunday, and the New York Knicks pulled away for a 92-80 victory over the coldshooting Lakers. “We came out ready to play and played hard,” said Anthony, who hit 13-of-25 field goals. “Offensively, we got it going early and got it going again in the third quarter. I got hot. I got lucky. Some shots went in for me.” Langston Galloway contributed 13 points for the hosting Knicks (10-38) winners for the fifth time in the last seven games. Carlos Boozer had 19 points with 10 rebounds; Jordan Clarkson also netted 19 for the Lakers (13-35), who shot an icey 35.5 per cent en route to their ninth loss in the last 10 games. New York Knicks forward Carmelo Anthony (left). “We just got off to a bad start in the first quarter, and we just couldn’t make ‘em all night long,” Lakers coach Byron Scott said. “I thought New York’s energy was a whole lot harder than ours and their effort was a lot better than ours. They just played better.” With All-Star guard Kobe Bryant lost to season-ending shoulder surgery, the Lakers firepower was limited, especially after centre Jordan Hill left in the opening quarter because of a right hip flexor. “I felt it tighten up and like it was going to pull it,” said Hill, who could miss up to two weeks. “Luckily, I caught it before something major happened.” In a once marquee match up between two storied NBA franchises, the rivalry has turned into a battle of bottom-feeders in rebuild mode. The Knicks raced out to a 32-19 lead after holding their guests to just 5-20 of shooting. The Lakers pulled to within 4739 at halftime despite shooting 26.8 per cent through the first 24 minutes. Anthony took over in the third quarter, with the All-Star forward running off the Knicks’ final dozen points for a 72-57 cushion. The gap grew to 21 in the final frame en route to the wire-wire victory. “We got down early, ‘Melo got hot in the third quarter, had it going and gave them a nice cushion,” Boozer said. “We tried to fight back a little bit but it was a little too late. We never really got over the hump to give ourselves a chance to win.” ELSEWHERE: Miami Heat 83, Boston Celtics 75: Hassan Whiteside had 10 of 20 points in a pivotal run, bridging the third and fourth quarters, Chris Bosh added 18 and the short-handed Heat beat the Celtics. The visiting Heat (20-27) snapped a two-game slide with just its third win in the last seven despite the absence of injured starters Dwyane Wade (right hamstring strain) and Luol Deng (calf strain). Results New York Boston 94 LA Lakers 75 Miami 80 83 Nashville Predators goalie Carter Hutton (right) celebrates with teammates after defeating the Pittsburgh Penguins 4-0. MCT Pittsburgh B ackup goaltender Carter Hutton led the Nashville Predators to a 4-0 shutout of the Penguins yesterday at Consol Energy Center. The Predators took a 1-0 lead 4:05 into the game. Defenseman Roman Josi fired one-timer from the right point through a cluster of bodies in front of the cage and beat Marc-Andre Fleury’s glove hand on the far side. That lead was doubled at 6:38 of the first period. Penguins defenseman Simon Despre turned a puck over from his own end boards to the slot where Predators left winger Gabriel Bourque hammered a one-timer by Fleury’s glove hand. Late in the second, Nashville took a 3-0 lead. After stealing a puck form Penguins center Sidney Crosby in the Penguins’ high slot, Predators left winger Taylor Beck deal a pass to left winger Eric Nystrom above the crease. Nystrom was able to deke Fleury out of position and scored on a forehand shot with 41 seconds remaining in the period. Nashville poured it on with another goal at 8:20 of the third. On a power play following a slashing penalty to Crosby, center Filip Forsberg dealt a pass to center Mike Fisher in the right circle. Taking advantage of a screen by Penguins defenseman Robert Bortuzzo and former Penguins left winger James Neal, Fisher snapped off a shot by the blocker of Fleury. Fleury finished with 20 saves. The Penguins have lost six out of their past eight games. Results Blues Coyotes Predators Wild 4 3 4 4 Capitals Canadiens Penguins Canucks 3 2 0 2 10 Gulf Times Tuesday, February 3, 2015 FOOTBALL Harry Kane signs new deal With Tottenham Hotspur Messi misses training due to ‘personal reasons’ Coach Blanc will ‘make do’ with PSG squad Algeria captain Bougherra quits internationals Tunisia players face heavy punishment for ref attack London: Harry Kane, break-out star of the current Premier League season, has signed a new five-and-a-half-year contract with Tottenham Hotspur, the London club announced yesterday. “The club is delighted to announce that Harry Kane has signed a new five-and-a-half-year contract which runs until 2020,” Tottenham announced on their website. Kane, 21, came through Tottenham’s youth academy and has scored 20 goals in 33 appearances this season, making him the leading scorer in all competitions in the English top flight. Barcelona: Four-time World Player of the Year Lionel Messi missed training yesterday due to “personal reasons”, Barcelona have confirmed. “Messi hasn’t trained today, with the permission of the club, due to personal reasons,” Barca said in a statement. The Argentine continued his fine form with the winning goal as Barca came from behind twice to beat Villarreal 3-2 on Sunday. Yet, it is just over a month since Messi missed another training session in front of the club’s fans, claiming to be suffering from gastroenteritis. Paris: Paris Saint-Germain coach Laurent Blanc explained yesterday that he would have to ‘make do’ with his expensively assembled squad as financial fair play rules had prevented the French champions from making winter break signings. “Because of the financial fair play rules we needed someone to leave before someone else signed, but nobody wanted to go. It’s as simple as that” Blanc told a press conference. “We had thought something might happen but in the end we couldn’t get any of our projects started.” Malabo: Algeria captain Madjid Bougherra has retired from international football after his country’s elimination from the African Nations Cup finals on Sunday. “That was my last official match. In football, you have to turn the page. I thank the coach for trusting me, I thank the national team,” he told reporters as Algeria prepared to go home after being beaten 3-1 by the Ivory Coast in their quarter-finals. “With (coach Christian) Gourcuff, we have a future in my view,” the 32-year-old added. Bata, Equatorial Guinea: Tunisia are facing heavy punishment after their players attacked the referee at the end of Saturday’s African Nations Cup quarter-final loss to Equatorial Guinea. Referee Seechurn Rajindraprasad of Mauritius was attacked by incensed Tunisia players who chased him down the tunnel and attempted to kick and punch him as he was escorted off the pitch by a phalanx of riot-clad policemen. CAF will also look at a spitting incident involving Equatorial Guinea defender Sipoto who could be suspended for the semi-final. AFRICA CUP OF NATIONS Messi hits winner as Barcelona keep up pressure on Real The Catalan side have been looking more resilient in recent weeks Reuters Barcelona Lionel (L) with MaxMessi Gradel ofvies Ivory Coast Villarreal’s Russian midfielder celebrates his goal against Denis Cheryshev (R) during Cameroon in their Africa Cup their ofSpanish Nations league Group Dmatch clash, in at the CamponNou stadium (EPA) in Malabo Wednesday. Barcelona on Sunday night. L ionel Messi struck the winner for Barcelona who twice came from behind to beat Villarreal 3-2 at home and move a point behind leaders Real Madrid in La Liga on Sunday. Barca dominated possession and Luis Suarez had several early chances but it was Villarreal who took the lead with Denis Cheryshev redirecting a Mario Gaspar shot past keeper Claudio Bravo on the half hour. The Catalan side have been looking more resilient in recent weeks and in-form Neymar knocked in a rebound before halftime after Rafinha’s shot had been saved by keeper Sergio Asenjo. Luciano Vietto restored the visitors’ advantage after being set up well by Giovani dos Santos but Barca again bounced back. Rafinha knocked the ball home after Messi’s header had been blocked by Victor Ruiz and then Messi hit a 20-metre shot into the top corner with his weaker right foot after 55 minutes. Barcelona coach Luis Enrique was pleased with the performance but admitted they lacked concentration for a spell. “It was a very positive match except for the goals that we conceded,” he told reporters. “At 1-0 we lost our composure for about ten minutes and gave the ball away but up until the first goal we didn’t face any danger. “When the score was at 3-2 we continued to attack as we wanted to finish the match off. We obviously try to keep hold of the ball but if the rival leaves you space then you have to attack it.” Barcelona have 50 points from 21 games while Real, who have also played a game less, beat Real Sociedad 4-1 on Saturday to stay top. Villarreal are sixth on 38 points. Elsewhere, a late Iago Aspas strike gave Sevilla a 3-2 home victory over Espanyol and moved them up to fourth in La Liga. Sevilla were seeking revenge for their defeat by Espanyol in the King’s Cup last week but they went behind to a Christian Stuani penalty after Salva Sevilla was felled by goalkeeper Beto. Sevilla, who are yet to lose at home this season, pushed forward and equalised in sensational style through a 35-metre drive from Diogo Figueiras after 26 minutes. Vitolo slotted home from close range for Sevilla 10 minutes before the break and then Espanyol keeper Kiko Casilla was sent off as he handled a lob from Aspas outside the area. Sevilla almost threw away the victory with Victor Sanchez firing home 15 minutes from the end but there was still time for Aspas, on loan from Liverpool, to hit the winner a minute from time. At the Camp Nou, Luis Enrique surprisingly left Xavi and Ivan Rakitic out of the starting lineup with Rafinha given a chance in the midfield. Villarreal arrived on an 18-match unbeaten run and although they were pressed back with Barca’s possession football they were a constant threat on the counter. Barca didn’t find it easy to breakdown Villarreal but their quality in attack eventually shone through. Neymar was on target again after his double helped Barca knock Atletico Madrid out of the King’s Cup last Wednesday and Messi crowned another dangerous performance with his 22nd league goal of the season. “It is fantastic to have such dangerous players in attack and they (Neymar and Messi) are in special form at the moment,” said Luis Enrique, who said he wasn’t worried that Suarez continued to struggle in front of goal. Barca accused of tax fraud in Neymar signing AFP Barcelona S panish public prosecutors have asked for Barcelona and their former president Sandro Rosell to be tried for two charges of tax fraud committed in the signing of Brazilian star Neymar (pictured). Meanwhile, prosecutors have also asked for the investigation of current Barcelona president Josep Maria Bartomeu and the club on an extra tax charge in 2014, which could rise to 2.85 million euros. In a judicial file released on Monday, prosecutor Jose Perals Calleja suggests that Rosell and Barca declared an inferior fee to that which they paid for Neymar in 2013. The prosecutors believe that Neymar cost in excess of the 57 million euros ($64.3 million, £42.7 million) declared to the Spanish tax man. They cite the figure at a cost of 82,743,485 euros divided into sperate contracts that secured the signing. According to the calculations of the Spanish tax authorities, Barcelona owe a total of 12,148,696 million euros in tax on the deal, which would see the overall cost of the operation rise to 94.8 million euros. Rosell resigned as president over the affair just over a year ago when a complaint brought by one of the club’s members for misappropriation of funds was taken to court. In his testimony before a judge on the case in July of 2004, Rosell insisted that Neymar cost the club 57 million euros, 17 of which went to his former club Santos and 40 million paid to N&N, a company owned by the player’s father. However, following Rosell’s resignation, Barcelona also confirmed a number of extra agreements including a 10 million euro signing bonus for the player and scouting and collaborative agreements between the two clubs taking the total to 86.2 million euros. In February of last year, the club announced that they had made a voluntary payment of 13.5 million euros to the Spanish tax authorities regarding the transfer. PREVIEW Januzaj hopes for Cambridge chance in FA Cup AFP London M anchester United winger Adnan Januzaj hopes today’s FA Cup fourth-round replay at home to lowly Cambridge United will help him to prove his worth to manager Louis van Gaal. The 19-year-old Belgium international was one of the few success stories during the disastrous reign of van Gaal’s predecessor, David Moyes. At the corresponding stage of last season, he had made 24 appearances and scored three goals, including two in a 2-1 victory at Sunderland that heralded his arrival on the Premier League scene. But under van Gaal, Januzaj has been involved in only 14 games to date this season, with his start in Saturday’s 3-1 victory over Leicester City just his fourth of the campaign and first since November. “I’ve not been playing for so long so it was good to get 90 minutes, even if I was really tired in the last 15 minutes and got cramp,” said Januzaj. It was predicted that the youngster would be allowed to leave the club on loan during the January transfer window, but the United manager has been impressed by Januzaj’s efforts of late and chose instead to keep him at Old Trafford “Of course we want to win the FA Cup and this is a big chance to win it. We were good going forward against Leicester and could have scored more than three goals, but hopefully we can take this into Tuesday night and win the game.” Van Gaal was more expansive when discussing the future of Januzaj, who turns 20 this week. It was predicted that the youngster would be allowed to leave the club on loan during the January transfer window, but the United manager has been impressed by Januzaj’s efforts of late and chose instead to keep him at Old Trafford. “He has a lot of talent, but you have to perform that talent in the matches. And also in the training sessions,” van Gaal told reporters. “I’m not making the line-up. The players themselves are making the line-up. You don’t believe that, I think! “I look at players every day. I observe and I communicate with my players what I want. And the moment I think, ‘OK, he is now ready to play,’ then maybe I can let them play.” The FA Cup is the only competition that United stand a realistic chance of winning and with Manchester City, Chelsea and Tottenham Hotspur among the teams to have fallen by the wayside, the field has opened up. United, embarrassed by a 0-0 draw in the first meeting between the sides, therefore seem certain to field a strong line-up, with van Gaal claiming he will resist the temptation to hand a debut to new goalkeeper Victor Valdes. Perhaps distracted by the prospect of the trip to Old Trafford, Cambridge’s league form has not matched their efforts in the cup, with Richard Money’s side collecting just one point from their last two League Two games. Saturday’s 3-2 defeat at Luton Town, which left Cambridge in the bottom half of the English fourth tier, provided a wake-up call. The replay will give an opportunity for midfielder Luke Chadwick to return to the club where he started his career, while winger Ryan Donaldson also has some experience of the stadium. Aged 17, Donaldson sat on the bench at Old Trafford for his former club Newcastle United. “Kevin Keegan was the manager. I never got on, but it was a fantastic atmosphere,” he recalled. “And the pitch seemed huge. Maybe that will suit me if I am in a wide role again. “But no matter what happens, it will be an incredible night. And the pressure is all on them, isn’t it?” The winners of the game will visit either Preston North End or giant-killers Sheffield United, who fell to Tottenham in the League Cup semi-finals last week. The two third-tier sides meet at Bramall Lane. In Tuesday’s other replay, Premier League Sunderland visit Fulham, while Liverpool travel to second-division Bolton Wanderers on Wednesday with a fifth-round trip to Crystal Palace up for grabs. Fixtures (10.45pm Qatar Time) Today: Fulham v Sunderland, Manchester United v Cambridge United, Sheffield United v Preston North End Tomorrow: Bolton Wanderers v Liverpool Gulf Times Tuesday, February 3, 2015 11 FOOTBALL SPOTLIGHT AFRICAN CUP OF NATIONS Korea’s Cha quits international game Ivorian form ominous for rivals Cha was to be avoided at all costs, even on the training ground Ivory Coast’s Kouassi Gervais (L) celebrates his goal against Algeria during their quarter-final in Malabo on Sunday. AFP Bata A File photo of South Korea’s Cha Du-Ri fighting for the ball with Australia’s Mathew Leckie during their AFC Asian Cup final on Sunday. Korean strongman Cha has announced his retirement from international football. Reuters Seoul C ha Du-ri retired from international football after South Korea’s Asian Cup final defeat to Australia at the weekend and while his career never hit the heights of his legendary father, the destructive defender will be a tough act to follow. The son of Bundesliga great Cha Bumkun, he began life as a speedster winger but found his true calling as a galloping wingback, leaving a trail of destruction in his wake with trademark wide-eyed, full-blooded challenges. Nicknamed “Cha-minator” and the “human weapon,” Cha was to be avoided at all costs, even on the training ground where his own teammates and coaches were left battered and bruised after tangling with the tattooed tough guy. Tributes to Cha’s contribution to the national team poured in over the week- end, with teammates past and present leading the way. “He was faster than the ball,” said captain Ki Sung-yueng said. “He devoted himself to the national team and he deserves respect.” Former national team defender Lee Young-pyo highlighted Cha’s aggression and physicality as his biggest assets. “One of his own coaches damaged his ribs when he bumped into Cha during training,” said Lee. “Even German players weren’t able to overcome him. His physical traits aren’t those of a typical Korean player.” Cha’s father, dubbed “Cha Boom” in Germany for his thunderous shooting and who is regarded as one of the finest footballers of the 1980s, said time had gone by so quickly and he found it hard to take in his son was retiring. “I still remember when Du-ri’s mother was pregnant, the pages of the Frankfurt newspapers were talking about a ‘zweite Cha Boom’ (second Cha Boom) about to be born,” said Cha, who played for Ein- tracht Frankfurt and Bayer Leverkusen. “And now he’s putting away the South Korean uniform,” he told local media. “I was so proud to have a son who played for the national football team.” At club level Cha was a fan favourite wherever he went, earning cult status with Scottish champions Celtic, where the crowd tweaked a Pussycat Dolls song in his honour by singing: “Don’t Cha wish your right back was Cha Du-ri, Don’t Cha?” Picked for the national team by Guus Hiddink while still an amateur, Cha was part of South Korea’s sensational run to the semi-finals of the 2002 World Cup on home soil. He was in and out of the national team over the next couple of years, missing out on a place in the 2006 World Cup squad, but made a big impression in 2010 when the Koreans reached the last 16, winning his 50th cap in a 2-1 loss to Uruguay. Left out of the national squad again for the 2014 World Cup, Cha looked to have played his last game for the Taeguek Warriors until German Uli Stielike took over as coach late last year. The two formed an immediate bond, with German-speaking Cha an invaluable conduit between Stielike and the rest of the squad. At 34 he was the most senior member of the Asian Cup squad but his tireless energy and lung-bursting runs left defenders for dead and younger team mates struggling just to keep up. Two trademark rampaging runs down the right led to crucial goals against Kuwait and Uzbekistan, while on Saturday he delivered a more disciplined defensive performance against Australia’s dangerous wide man Mathew Leckie. The Koreans fell just short of winning their first Asian title in 55 years after a 2-1 defeat in Sydney, and while many have called on him to rethink his international retirement, Cha said he was leaving on a high. “My last soccer journey has ended,” he wrote on his Twitter page. “I am a really happy football player.” BUNDESLIGA Bayern out to bounce back against Schalke 04 AFP Munich G erman league leaders Bayern Munich look to get their Bundesliga campaign back on track against Schalke 04 today following their shock defeat at VfL Wolfsburg. Second-placed Wolves cut Bayern’s lead to eight points on Friday as Bas Dost and Kevin de Bruyne both struck twice as the Bavarian giants suffered their heaviest league defeat for six years. Roberto di Matteo’s Schalke, who are fourth in the table, are seeking only their fourth away league win of the season and their first at Munich’s Allianz Arena since 2009. Bayern’s Gelsenkirchen-born goalkeeper Manuel Neuer is relishing facing his home town club. “It would have been worse if we’d had to wait eight days for our next game,” said the exSchalke shot-stopper. “Wolfsburg wasn’t a good start to the second half of the season for us, that is obvious, we had imagine things would go differently. “It wasn’t a catastrophe, but we know we still have a lot of work ahead of us.” Netherlands winger Arjen Robben said Pep Guardiola’s Bayern must respond after their “wake-up call” against Wolves. “We have to learn our lessons Roberto di Matteo’s Schalke, who are fourth in the table, are seeking only their fourth away league win of the season and their first at Munich’s Allianz Arena since 2009 and perhaps it’s not so bad for the future,” added Robben. Schalke will be without Netherlands star striker Klaas-Jan Huntelaar, the league’s top scorer last season, who is suspended after being sent off for a reckless tackle in the 1-0 home win over Hanover 96 last Saturday. “Klaas is obviously disappointed, it’s a real shame. We’ll have to see how we can cope with his loss,” said Di Matteo. The Schalke coach is also wait- ing on the fitness of midfielder Marco Hoeger, who limped off after scoring Saturday’s winner with a thigh injury. Second-placed Wolfsburg are hoping to include Chelsea’s Andre Schuerrle for Tuesday’s away match at Eintracht Frankfurt if they sign the Germany winger before the transfer window closes. Schuerrle has said he wants to join Wolves, who are offering a four-year deal and a transfer worth 30 million euros, but the deal is reported to be stalling over the money offered to Chelsea. Bottom side Borussia Dortmund have their work cut out as they chase their first win in six games when they travel to Augsburg tomorrow. Augsburg climbed to fifth after securing their tenth win of the season with a 3-1 victory over Hoffenheim on Sunday while Dortmund have lost 10 of their first 18 matches. Borussia earned a precious point with a goalless draw at fellow Champions League side Bayer Leverkusen on Saturday, but are only three points from mid-table. Fixtures (10pm Qatar Time) Today: Bayern Munich v Schalke 04, Bor. Moenchengladbach v Freiburg Hanover 96 v Mainz 05, Eintracht Frankfurt v VfL Wolfsburg Tomorrow : Borussia Dortmund v Augsburg Hoffenheim v Werder Bremen, Hertha Berlin v Bayer Leverkusen, Cologne v VfB Stuttgart, Paderborn v Hamburg. fter a clinical performance in beating the pre-tournament favourites on Sunday, an improving Ivory Coast now have a first Africa Cup of Nations title in almost a quarter of a century within grasp. The Elephants’ coach Herve Renard described Algeria as “the best team in the tournament” immediately after his side beat them 3-1 in Malabo to clinch a place in the last four, where they will face DR Congo tomorrow. But Renard also showed that he is surely the competition’s most tactically astute coach as he extended his own impressive unbeaten run in the Cup of Nations. The Frenchman has suffered just one defeat in his last 15 Cup of Nations games, and that came on penalties at the hands of Nigeria when he was in charge of Zambia in 2010. Ivory Coast captain Yaya Toure, the continent’s leading player, has yet to perform for Renard at this tournament as brilliantly as he so often does for Manchester City. He has also constantly played down his side’s prospects despite their undoubted quality on paper, but his pragmatic approach worked for Zambia when they so memorably won the Cup of Nations in 2012 at the expense of the Ivory Coast, and now it is starting to pay off with a better team. Some outstanding performances from his young defence, the energy of Serey Die in midfield and the decisive contributions of Max-Alain Gradel have played their part in taking the Ivory Coast to the last four, while on Sunday Wilfried Bony stepped forward with a brace of headers against the Algerians. “When I played with Zambia against the Ivory Coast, they were much better than us, but we battled with the weapons we had and won on penalties. That is how football is,” said Renard. “You need to be realistic and try to put the best tactics in place to beat your opponent.” A three-man central defence marshalled by Kolo Toure wavered for a spell in the second half up against the pace and technical ability of the Algerians, but there has been a vast improvement since the qualifying campaign, when they let in 11 goals in six games. “Eric Bailly had a great match. He was really motivated having just signed for Villarreal. I think he really deserves it,” said Renard on Sunday of the 20-year-old. “And Wilfried Kanon is also a young player without experience but luckily we also have Kolo Toure. It’s a very inexperienced defence but thanks to Kolo there is plenty of communication.” The return of Gervinho on Sunday after a two-game ban for his sending-off against Guinea at the start of the group stage was an added boost for the Ivorian attack. The Roma player scored the third goal against Algeria in stoppage time, but there is less pressure on him to perform now that Bony and Gradel are firing on all cylinders as the Elephants move on from the Didier Drogba era. “I think the Ivory Coast is very lucky to have a big centreforward like Wilfried Bony just behind Didier Drogba, because I think you know very well the statistic - he was the best scorer in England in 2014, so I think that explains everything,” said Renard of the squat striker who recently joined Manchester City. Gradel, meanwhile, is someone who Renard describes as “extraordinary to have around the squad, whether he is playing or not.” The bronzed Renard has created an excellent team spirit and a winning mentality in his side, meaning a repeat of the 4-3 loss to DR Congo in October’s qualifying fixture in Abidjan would be an enormous surprise when the sides clash again this week. And with Equatorial Guinea and Ghana meeting in the other half of the draw, a first Cup of Nations title since 1992 looks a very real prospect indeed for the post-Drogba Ivorians. ITALIAN CUP Roma, Fiorentina clash in quarters DPA Rome R oma and Fiorentina meet today in the quarter-finals of the Italian Cup after drawing in Serie A action, which left the Rome Giallorossi particularly disappointed. The league weekend was positive for Napoli, who won 2-1 at Chievo and tomorrow tackle troubled Inter Milan with two more semi-final places up for grabs alongside Juventus and Lazio in the semi-finals. Fiorentina were pleased with their 1-1 draw Saturday at Genoa and had minor complaints for not profiting from the late dismissal of the hosts’ defender Nicolas Burdisso. “As (scoring) chances are concerned, Genoa did a little more,” La Viola coach Vincenzo Montella said. “But the game was even and the result is to be accepted. We lacked a little order. Our nerves were a little tired, but it was a point we gained.” The mood of Roma boss Rudi Garcia was gloomier after a 1-1 home draw against minnows Empoli, the fourth straight in a run that also included a 1-1 draw with La Viola on January 25. Argentine forward Juan Iturbe hurt a leg and is to be out for more than a month to join Kevin Strootman on the Giallorossi’s injured list. Also out are forwards Gervinho and new signing Seydou Doumbia, both at the Africa Cup of Nations with the Ivory Coast. “Unfortunately I have little choices available,” Garcia said. “In this moment we must bite the bullet and do all we can to get back to winning. “We only have to look ahead to the next game in the cup against Fiorentina. In this moment we have many problems and only three days to recuperate.” As Fiorentina stayed sixth with an Europa League berth in their sights, second-place Roma remained seven points adrift of Juventus, who drew 0-0 at Udinese, but saw Napoli close within four points. The Naples side now aim for second place, which ensures direct Champions League qualification. But with 17 domestic league games left, coach Rafael Benitez declined to make longterm plans. Tuesday, February 3, 2015 SPORT GULF TIMES CYCLING FOCUS Bronzini, Hosking lead field at Ladies Tour of Qatar Three rivals take on Blatter for FIFA presidency ‘Qatar is always a huge objective for me. I love to race here’ Dutch association chief Michael van Praag (left) and former Portuguese international football player Luis Figo. AFP Lausanne F (From left) Qatar Cycling Federation’s (QCF) president Sheikh Khalid bin Ali al-Thani, QCF CEO Ahmed Abdullah al-Hemaidi, Q-Auto managing director Yann Lassade and QCF director of Sports Operations John Lelangue at a press conference yesterday. PICTURE: Jayaram By Yash Mudgal Doha I n the absence of defending champion Kirsten Wild, Wiggle-Honda riders Giorgia Bronzini and Chloe Hosking will lead an impressive line-up in the seventh edition of Ladies Tour of Qatar, which will commence today from Museum of Islamic Art. Italian sprinter and two-time world champion Bronzini along with Dutch star Wild, who has won four of the previous six editions of the race, are the only two riders who have won multiple stages of the race in the past. Wild is not taking part this year in the four-day event — the highest-ranking UCI stage race of the women’s calendar of the season — as she is concentrating on track events. Bronzini has taken three stages in the desert race, and finished second in the first two editions, while Australian Hosking is also a former stage winner, with two overall podiums to her credit. Both riders have shown great form in the Australian summer races, with victories in the Mitchelton Bay Crits and the Santos Women’s Tour, and both are focused on the race which is traditionally dominated by strong riders in the wind. “Qatar is always a huge objective for me. I love to race here, I love the wind, I love echelons,” in-form Hosking told Gulf Times. “I finished second overall here in 2013 and third overall in 2014. If I’m in the right position I would love to go for a GC result this time. The racing here is about Wiggle-Honda riders Chloe Hosking (left) and Giorgia Bronzini. being consistent, making the front group every day and picking up seconds whenever you can. “We’ve got such a strong team that we could go for anyone. It’s exciting to be lining up with such a dynamic squad which has Giorgia. I think we can have a serious impact on the race.” Wild’s countrywoman Ellen Van Dijk and German Judith Arndt own the two other victories of the Tour. Van Dijk is also returning with team Boels-Dolmans, which also has World Cup overall and Commonwealth Games winner Lizzie Armitstead. Qatar Cycling Federation’s (QCF) director of Sports Operations John Lelangue, said, Wild’s absence is making the race a little bit different. “We are on the edge of a pretty open race. The wind is strong and it will surely make the difference as Wild is not here to defend her title,” Lelangue said. “We have four stages covering a total distance of 389.5km and two bonus sprints per stage and bonus at every stage finish makes it very challenging,” he said. Addressing a press conference on the eve of the inaugural stage of the tour QCF president Sheikh Khalid bin Ali al-Thani said this year’s race would be very interesting. “I think start of stage three from Souq Waqif will be quite interesting. It is a very popular area of the city and we feel it is important to show this historical place to the people. We are taking races to the busy place with people around to make it more interesting,” Sheikh Khalid said. “Wind will again play an important role again and I think in Wild’s absence, those who will handle the wind well will be successful,” he added. Talking about increasing the number of stages, he said there is no such plan as of now.“We started the race with three stages and later increased it to four. It will remain at four, at least until next year,” he said. With one year to go before the World Road Championships come to Qatar for the first time, 90 riders (15 teams of 6) will be present at the Tour. This race is also important for many riders as they have signed up for new teams and they are excited and waiting for the season to start. Orica-AIS, the best team from the last edition, has Emma Johansson, world number one in 2013, and Valentina Scandolara, who is in form after winning the 2015 Santos Women’s Tour in January. World time trial champion Lisa Brennauer will also participate, along with her newly-formed Velocio-SRAM team. Last year’s stage two winner Amy Pieters — the only rider to win a stage in 2014 other than Wild — will lead Team LivPlantur with Lucy Garner, while American Shelley Olds will lead the Bigla team. LADIES TOUR OF QATAR (FEBRUARY 3 TO 6) Stage 1 (98.5km): Museum of Islamic Art to Dukhan Beach Stage 2 (112.5km): Al Zubarah Fort to Madinat Al Shamal Stage 3 (93.5km): Souq Waqif to Al Khor Corniche Stage 4 (85km): Sealine Beach Resort to Doha Corniche Total Prize Money: Euro 21,630 Winner’s purse: Euro 1,200 ootball’s world governing body FIFA announced yesterday that four candidates are bidding to become its president, including long-time incumbent Sepp Blatter. The three others who have thrown their hat into the ring are Asian Football Confederation vice-president Prince Ali bin al-Hussein of Jordan, former Portugal international Luis Figo and Dutch football chief Michael van Praag. Two others who had been considering making bids — former France international forward David Ginola and ex-FIFA executive official Jerome Champagne — both failed to get the necessary backing from five national associations. A FIFA statement said that the candidature dossiers would next go before the investigatory chamber of an independent Ethics Committee to carry out integrity checks on the four men within ten days. “Upon receipt of the results of the integrity checks, the (FIFA) Ad-hoc Electoral Committee will reconvene in order to review all of the submissions and validate their compliance with the applicable FIFA regulatory provisions. “Following this process, the Ad-hoc Electoral Committee will formally admit and declare the candidates who are eligible for the office of FIFA President.” After that the FIFA executive committee will meet in Zurich on May 29 and decide if Blatter will get a fifth term as president or bring in a new man. The 78-year-old Swiss bureaucrat is seen as an outstanding favourite to win a new term despite a storm of protest over the way he runs the organisation. His reign has notably been tarnished by accusations of corruption stemming from the bidding process for the 2018 and 2022 World Cups, which were awarded to Russia and Qatar respectively. The controversies have seriously eroded his support and tarnished his reputation in European strongholds like England, Germany and the Netherlands, but he still enjoys wide support in Asia, Africa and Oceania. On top of that the success of last summer’s World Cup in Brazil, despite earlier fears over the state of the organisation, has further boosted his status. Champagne, a former FIFA deputy general secretary, was for a long time the only man to declare his intention to challenge Blatter for the post. But yesterday he announced his withdrawal from the contest in a letter to national associations where he blamed European-governing body UEFA and the “institutions” mobilising to eliminate him. He said he had secured three nominations but other associations feared reprisals if they backed him. “The reasons were numerous. Because they feared reprisals from their confederations having issued ‘recommendations’.” “Because their federations were candidates to host continental competitions. Because they relied too heavily on the financial support. Because they were committed to defend a united continental front.” Ginola, whose late entry as a potential candidate took many by surprise, ended his bid on Friday after he failed to receive the required five nominations from football associations needed to continue. Figo and van Praag both announced their candidatures last week while Prince Ali launched his campaign at the start of the year. INTROSPECTION FIFA probe West Ham, Sakho over AFCON no-show AFP London W orld governing body FIFA yesterday announced disciplinary proceedings against West Ham United and Diafra Sakho (pictured) over the striker’s failure to play for Senegal at the Africa Cup of Nations. Sakho was ruled out of the tournament in Equatorial Guinea with a back injury, but came off the bench to score for West Ham in their FA Cup fourth-round win over Bristol City on January 25. West Ham have maintained that they followed the correct procedures, but Sakho was left out of their squad for Saturday’s 2-0 loss at Liverpool in the Premier League. “We can confirm, that disciplinary proceedings were initiated against the player Diafra Sakho (SEN) and the club West Ham United for a potential violation of the FIFA Regulations on the Status and Transfer of Players,” FIFA said in a statement. “At this stage we can’t make any further comments.” If FIFA’s case is proven, Sakho could face a domestic suspension and West Ham a fine, but the club said the charge was “unfounded” and called for it to be thrown out. “Diafra Sakho and West Ham United vigorously deny that they have acted in breach of FIFA regulations,” the club said in a statement. “They regard the proceedings as clearly unfounded and are requesting their dismissal. At this stage, neither the player nor the club can make any further comments.” Sakho travelled to West Ham’s game against Bristol City by limousine, rather than by plane, in a bid to avoid aggravating his back injury. West Ham manager Sam Allardyce confirmed that Sakho had been omitted from his squad for the Liverpool game due to the affair. “With Sakho it is down to the situation we are in with FIFA,” he said. “While it is happening it is not conducive for us to be putting him on the field until it is resolved, sadly. “If you speak to the lad, you would know how angry and disappointed he is at being denied the opportunity to play football when it is not our fault. We have covered all the rules and regulations, but at this moment in time it is sensible to do the right thing and not get involved any more.” Sakho, 25, joined West Ham from French side Metz last year and is the east London club’s top scorer this season with 10 goals. Jordan’s Prince Ali bin al-Hussein and FIFA president Sepp Blatter. Cruyff backs Van Praag for FIFA job The Hague: Football legend Johan Cruyff has thrown his weight behind fellow Dutchman Michael van Praag in the race for FIFA’s presidency, saying his friend was somebody “you can count on”. Writing for popular daily tabloid De Telegraaf yesterday, Cruyff said if Van Praag “ever asked for my support, he’s got it”. “I’ve known him for fifty years and we remain good friends. He’s someone you can count on.” Dutch football chief Van Praag a week ago threw his hat in the ring in the bid to dethrone FIFA president Sepp Blatter, saying he would stand for one term only. Van Praag said he wanted to modernise football’s world governing body “which has lost all credibility”. The former Ajax chairman presented backing from the Dutch, Belgian, Swedish, Scottish, Romanian and Faroe Islands’ football federations. He is among four candidates announced yesterday for the FIFA candidacy including Blatter himself, considered to be the favourite. Another candidate is former Portugal international Luis Figo, who Cruyff described as an “excellent candidate” but one lacking management experience. “Therefore it would be good for Figo to support Van Praag,” this time, Cruyff writes.
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