Bank of England hikes 2014 growth forecast

Bank of England hikes 2014 growth forecast

 

By Roland JACKSON (AFP)

 

London — The Bank of England ramped up its 2014 economic growth forecast on Wednesday as Britain's recovery picks up speed, and vowed to keep interest rates low after tweaking its guidance.

 

Gross domestic product (GDP) was set to grow by 3.4 percent this year, the central bank said in its latest quarterly report.

 

That was up sharply from an earlier estimate of 2.8 percent given in November.

 

"The recovery has gained momentum. Output is growing at the fastest rate since 2007, works are being created at the quickest pace since records began, and after four years above target the inflation rate is back at 2.0 percent," governor Mark Carney said.

 

Carney took charge of the BoE last August and launched the forward guidance policy, under which the BoE had stated that it will not raise record-low interest rates until the unemployment rate falls to at least 7.0 percent.

 

However, the bank forecast on Wednesday that the unemployment rate -- which has fallen more sharply than expected amid the strengthening recovery -- would hit 7.0-percent in the coming months.

 

As a result, the BoE added it would look at a "broad range of indicators" at that point, in order to assess the health of the labour market and establish whether borrowing costs should rise.

 

Under the latest guidance, the bank will seek to absorb all the spare capacity in the economy over the next two to three years to allow a full recovery.

 

When interest rates do begin to increase, it will be a gradual and limited process, according to the BoE.

 

The central bank also pledged to maintain its £375-billion ($620-billion, 456-billion-euro) bond-buying stimulus programme, known as quantitative easing, until at least the first rate hike.

 

Interest rates have stood at a record low level of 0.50 percent since March 2009, when it also launched the vast QE stimulus to aid growth.

 

The bank meanwhile predicted fourth-quarter GDP growth would be revised to 0.9 percent, from 0.7 percent.

 

It also expected the economy would grow by a robust 0.8 percent in the current first quarter.

 

"Forward guidance is working," Carney told journalists.

 

"Expected interest rates have remained low even as the economy has recovered strongly.

 

"Uncertainty about interest rates has fallen. Most importantly, UK businesses have understood the message."

 

Canadian national Carney was last month forced to dampen talk of a rate rise any time soon, following news that the unemployment rate fell faster than expected to 7.1 percent, a near five-year low point.

 

The bank stressed on Wednesday that borrowing costs "may need to remain at low levels for some time to come" as Britain grapples with the ongoing legacy of the financial crisis and other economic headwinds.

 

"If and when the time comes that the economy can sustain higher interest rates, bank rate is expected to rise only gradually," Carney said.

 

"For a sustained and balanced recovery, the degree of stimulus will need to remain exceptional for some time."

 

The BoE also predicted that 12-month inflation would remain at, or slightly below the bank's official 2.0-percent target, over the forecast period.

 

The economy expanded at the fastest rate last year since before the global financial crisis, growing by 1.9 percent in 2013.

 

That was the fastest pace since 2007.

 

"Despite the very sharp and unexpected fall in unemployment, the MPC still sees plenty of slack in the economy that must be used up before raising bank rate," noted HSBC economist Simon Wells.

 

"Phase two of forward guidance offered no new targets or thresholds, but by arguing that there is a lot of spare capacity and with inflation projected to be below target 2-3 years ahead, governor Carney wanted to send a signal that rates are not moving soon."

 

Copyright © 2014 AFP. All rights reserved.

 

(Agence France-Presse, 13 Thursday February 2014 The Roman)

 

 

Trading on Dubai’s main stock exchange suspended because of a system malfunction

Trading on Dubai’s main stock exchange suspended because of a system malfunction

 

[caption id="attachment_12236" align="alignnone" width="400"] (Trading of instruments on Dubai's main stock exchange has been suspended because of a system malfunction. (File photo: Reuters))[/caption]

 

Trading of instruments on Dubai's main stock exchange, Dubai Financial Market, has been suspended on Tuesday because of a system malfunction, a bourse spokesman told Reuters.

 

The problem is under investigation and there is no time frame for it to be resolved, he said, adding that the market would be updated on further developments.

 

(Reuters, Dubai)

 

(Al Arabiya News, 4 Tuesday February 2014 The Roman)

 

Spain to exit from bank bailout in January

Spain to exit from bank bailout in January

 

Spain has announced it is to exit its EU/IMF bank bailout programme.

 

Madrid borrowed 41 billion euros last year to rescue many of its banks crippled by bad loans after the collapse of a property and construction bubble.

 

The country has now met the conditions of its aid programme and its banking sector has “significantly improved” according to euro zone finance ministers.

 

It follows an announcement by Ireland that it will also exit the bailout next month.

 

At a news conference in Brussels ministers welcomed Spain’s decision, hailing it a success for the Eurogroup.

 

Head of Eurogroup, Jeroen Disjsselboem, said: “These two countries are an example of how a programme can work, and should work. So I think that’s a good sign. Of course at the outstart of the whole crisis management of the euro zone this was all new, it was all ‘terra incognita’, it all had to be worked out, and we’ve now had two good experiences, successful experiences, and I think that’s very important.”

 

Copyright © 2014 euronews

 

(euronews, 16 Saturday November 2013 The Roman)

 

Dubai’s Arabtec Holding says will set up five new subsidiaries

Dubai’s Arabtec Holding says will set up five new subsidiaries

 

[caption id="attachment_12163" align="alignnone" width="400"] (Dubai-based builder Arabtec Holding said on Sunday it would set up five new subsidiaries as it expands into new markets. (File photo: Reuters))[/caption]

 

Dubai-based builder Arabtec Holding said on Sunday it would set up five new subsidiaries as it expands into new markets and infrastructure projects.

 

Two of the units will focus on infrastructure projects inside and outside the United Arab Emirates, one will focus on water and energy project and one will concentrate on the Egyptian market, it said in a bourse statement.

 

Arabtec will also set up an investment firm, Arabtec Capital, to provide global financial services.

 

The news comes as Dubai construction firm Arabtec clinched a $6.1 billion contract in early February, its biggest ever by value, as its relationship with Abu Dhabi state fund Aabar, a key shareholder, promised to make the firm one of the region’s top builders.

 

Arabtec said it had signed a memorandum of understanding to build 37 mixed-use, residential and hotel towers for Aabar in Abu Dhabi and Dubai.

 

The announcement pushed up stock markets, especially cement shares, in Abu Dhabi and Dubai because it was a fresh sign that their real estate markets are recovering strongly after prices halved during the global financial crisis.

 

(Reuters, Dubai)

 

(Al Arabiya News, 9 Sunday February 2014 The Roman)

 

Panama Canal upgrade remains at standstill amid $1.6 bn cash gap

Panama Canal upgrade remains at standstill amid $1.6 bn cash gap

 

Panama City (AFP)

 

Work on expanding the Panama Canal is unlikely to resume Saturday as local officials face negotiations with foreign builders after the project was halted in a dispute over cost overruns.

 

The multi-billion-dollar plan to build larger locks on the 80-kilometer (50-mile) waterway linking the Atlantic and Pacific Oceans stopped Friday in a row over who will pay an additional $1.6 billion (1.2 billion euros) bill.

 

The independent Panama Canal Authority (ACP) and GUPC consortium -- a group of international builders headed by Spain's Sacry Vallehermoso -- exchanged proposals throughout the day, but without a deal.

 

"We keep open the possibility of reaching an agreement, and we are making an effort towards that goal," said ACP chief Jorge Quijano.

 

According to the builders, "talks with the ACP are ongoing and are expected to continue next week."

 

Bankers financing the 3.2 billion contract (2.3 billion euros) to expand the canal visited the worksite on Friday.

 

The project is designed to widen the canal so that massive cargo ships can pass through.

 

It is one of the world's most ambitious biggest civil engineering projects and was due to be completed next year.

 

The builders have said completion may be delayed by up to five years.

 

The consortium has accused the Panama Canal Authority of breaking off negotiations.

 

It says the authority failed in obligations to pay a $50 million bill and to help pay workers and subcontractors.

 

GUPC had offered to split the cost of finishing the dig with the Canal Authority and then let arbitrators decide who pays for the overrun.

 

The Panamanians suggest a deal could be reached if the builders commit to specific dates for stages of the job to be ready.

 

There would also be a ban on further cost overruns.

 

The GUPC claims unforseen geological difficulties have forced them to spend much more on cement than expected.

 

They say that they based their estimates on data provided by the Canal Authority that was incorrect.

 

The consortium of builders includes Italy's Impreglio, Jan de Nul from Belgium, and Panama's Constructora Urbana.

 

The original canal, built by the United States mostly with workers brought in from the Caribbean, was completed in 1914.

 

It offers a shortcut and safer journey for maritime traffic, is used by 13,000-14,000 ships each year, handling five percent of world sea trade.

 

The canal generates $960 million a year for Panama, nearly 10 percent of the country's total annual income

 

(Agence France-Presse, 8 Saturday February 2014 The Roman)

 

http://www.afp.com/en/news/topstories/panama-canal-upgrade-remains-standstill-amid-16-bn-cash-gap

 

Spain-led venture halts work on Panama canal over $1.6 bn overrun

Spain-led venture halts work on Panama canal over $1.6 bn overrun

 

[caption id="attachment_12031" align="alignnone" width="400"] (View of halted expansion works at Panama Canal locks, in Cocoli, near Panama City, on 5 Wednesday February 2014 The Roman (AFP, Rodrigo Arangua))[/caption]

 

By Katell Abiven (AFP)

 

Madrid — A Spanish-led consortium said Friday it has halted work on expanding the Panama canal, which handles five percent of world sea trade, in a row about cost overruns.

 

The multi-billion-dollar project to build extra locks on the 80-kilometre (50-mile) waterway linking the Atlantic and Pacific Oceans ground to a halt because of a dispute over who will pay for $1.6 billion (1.2 billion euros) in overruns.

 

"While awaiting an agreement to enable the finalisation of construction, work has been suspended on the project," said a statement by the GUPC consortium, led by Spanish construction group Sacyr.

 

The project to widen the canal so massive cargo ships can pass through it -- one of the biggest civil engineering operations in the world -- was due to be completed next year.

 

But GUPC has said completion may be delayed by up to five years, as each side has accused the other of breaking the deal.

 

The European Union's industry commissioner, Antonio Tajani, who has mediated the dispute, warned that the interruption of the dig would be "bad news" for the world economy.

 

The consortium accused the Panama Canal Authority of breaking off negotiations.

 

It says the authority failed in obligations to pay a $50 million bill and to help pay workers and subcontractors.

 

GUPC had offered to split the cost of finishing the dig with the canal authority and then let arbitrators decide who pays for the overrun.

 

It said late Thursday it had submitted a further new proposal to settle the dispute.

 

"The GUPC continues as always to seek an agreement on co-financing in line with the contracts and relevant legislation, with the aim of a joint and immediate resolution," the consortium said.

 

The canal authority had claimed on Wednesday that the builders had already stopped work, but Sacyr denied that at the time, insisting it was seeking to avoid a shutdown.

 

The canal is being widened to permit the passage of ships carrying up to 12,000 containers, twice the current limit.

 

But the disputed contract to build a third set of locks, due initially to be completed this year, was already running nine months late and since the beginning of this year work has slowed down further.

 

GUPC is in dispute with the canal authority in part over geological difficulties which have obliged the builders to spend much more on cement than expected.

 

The canal, completed in 1914 to offer a short cut and safer journey for maritime traffic, is used by 13,000-14,000 ships each year.

 

Copyright © 2014 AFP. All rights reserved.

 

(Agence France-Presse, 7 Friday February 2014 The Roman)

 

 

BoE cyber attack exercise shows banks unprepared

BoE cyber attack exercise shows banks unprepared

 

Simulated three–day attack on Britain's financial system reveals problems

 

[caption id="attachment_11878" align="alignnone" width="400"] (The scenario simulated an attack on Britain's financial system, including denial of service attacks on the global websites of major banks, the penetration of secure networks by hackers, and problems with core payment systems. (Photo: EPA))[/caption]

 

A Bank of England–led exercise simulating a major cyber attack on the British financial system has revealed a lack of knowledge among banks about how and when to report security breaches, as well as problems with coordinating the response to any incident.

 

In a series of findings published yesterday, the Bank said its exercise had revealed "considerable progress" since a previous test but that there was a need for a single body to coordinate communications in the event of a real crisis.

 

The British Bankers' Association was recommended as the official mouthpiece of the financial system in the event of a cyber attack.

 

If handed the role, the BBA would be expected to manage the response of the banking industry if it were hit by a sustained and widespread attempt to disrupt the financial system.

 

"It was noted that there was no central industry coordination for financial sector information–sharing and communication to the wider public," said the Bank in its report.

 

Operation Waking Shark II was run by the Bank last year to test the readiness of the UK's financial infrastructure in the event of a hostile country launching an all–out cyber attack on critical financial infrastructure.

 

The scenario involved simulating a three–day long attack on Britain's financial system, including denial of service attacks on the global websites of major banks, the penetration of secure networks by hackers, and problems with core payment systems.

 

To add to the realism, the exercise assumed an attack coincided with the so–called "triple witching" period in which a series of important financial contracts, such as index futures and stock options, expire.

 

About 220 people were involved in the war games, which included 14 investment banks and major lenders, six providers of financial infrastructure, as well as represenatives of the Bank of England, the Prudential Regulation Authority, the Financial Conduct Authority and the Treasury.

 

The first Operation Waking Shark took place in 2011 and, with the increased focus on cyber threats, the number of future exercises is expected to increase.

 

Regulators will hold shorter but more frequent war games.

 

With the threat increasingly coming from abroad and the impact of a major attack likely to have international ramifications, the authorities have been asked to widen the scope of future war games to allow more foreign participants.

 

Cyber attacks have been identified as one of the biggest problems for the banking industry and major financial services groups face regular attacks on their systems from a variety of sources, including both criminal gangs and foreign governments.

 

Most of these attacks are relatively small–scale but some have led to severe security breaches and the collapse of core systems.

 

(The Telegraph, 6 Thursday February 2014 The Roman)

 

British businesses fall victim to 'cybersquatters' amid domain name rollout

British businesses fall victim to 'cybersquatters' amid domain name rollout

 

As hundreds of new web suffixes become publicly available, some of Britains top brands are falling victim to 'cybersquatters'

 

This week sees the rollout of hundreds of new generic top-level domain name suffixes, from شبكة. – pronounced dot-shabaka (.web in Arabic) – to .sexy, .technology and .singles.

 

Over the next year, more than 1,000 new top level domains (TLDs) will come online, taking the number well beyond the 22 that are used today, such as .com, .net and .org.

 

This has been hailed as one of the biggest changes to the Internet since its inception.

 

However, new research reveals that some of the UK’s biggest companies are failing to protect their intellectual property, with many domain names relating to British brands already being bought up by third parties.

 

For example, one of the most highly anticipated new extensions is .web, but 80 per cent of the .web domain names relating to the UK’s 50 most valuable brands have been reserved by unknown entities – including HSBC.web, JohnLewis.web and Burberry.web – according to ICANN's Trademark Clearinghouse, the centralised repository of validated trademarks.

 

Similarly, third parties have attempted to pre-order 78 per cent of the UK’s top 50 most valuable brands under the .online domain name, 72 per cent under .app, 70 per cent under .shop and 68 per cent under .blog.

 

This practice is known as 'cybersquatting', because the third party is essentially holding the brand's domain name to ransom.

 

“The research shows that some of the UK’s biggest brand names are at risk of IP infringement online as new TLDs are rolled out, with other parties keen to capitalise on the traffic a branded website will generate," said Jan Corstens, project director at the Trademark Clearinghouse.

 

"This not only compromises the reputation of each brand targeted, but also has much larger implications. Looking at the bigger picture, if brands fail to prevent third parties from registering domains relating to their trademarks, the economy as a whole potentially stands to lose millions to grey and black market activities, with consumers inadvertently buying counterfeit products from third parties posing as the brand online”.

 

Further analysis revealed that 54 per cent of these brands are currently not in control of key domain names across major existing domain extensions.

 

The findings include examples of familiar brands from the telecoms, financial services and petroleum industries not owning key domain names such as VirginMedia.info, RBS.biz and Shell.net.

 

Brands in the food grocery space were most notable in this regard, with tesco.co, asda.org, sainsburys.info, morrisons.org all found to be under the control of an unofficial party.

 

Around 70 per cent of the brands studied have already taken legal action against third parties infringing on their IP online.

 

One way for companies to protect their intellectual property is to pre-register domains such as tesco.shop and tesco.web, to prevent cybersquatters from getting their hands on them.

 

However, each of these new domains costs about £10 to £30 a year to own, and the sheer number of new TLDs means that costs will add up.

 

Alternatively, companies can record their trademarks in the Trademark Clearinghouse.

 

This allows them to secure all the domain names relating to a particular trademark ahead of wider public availability, and be warned if any third party seeks to take control of a domain which matches their IP.

 

It costs £92 to record a trademark for a year, £267 for three years, and £446 for five years.

 

"We believe that in these instances, prevention is better than cure and cheaper than costly litigation associated with domain disputes," said Corstens.

 

(The Telegraph, 5 Wednesday February 2014 The Roman)

 

Honda net profit doubles to $1.56 bn in Q3

Honda net profit doubles to $1.56 bn in Q3

 

Tokyo (AFP)

 

Honda said Friday its net profit doubled to $1.56 billion in the three months to December, thanks to brisk global sales and a weaker yen.

 

Net profit for October-December rose to 160.7 billion yen ($1.56 billion), while revenue rose 24.5 percent to 3.02 trillion yen in the quarter.

 

The results were "mainly due to a rise in automobile and motorcycle net sales as well as the positive impact of foreign exchange effects," the company said.

 

A sharp decline in the yen this financial year has boosted profitability at major Japanese exporters including Honda rivals Toyota and Nissan.

 

For the nine months to December, Japan's third-largest automaker logged 403.60 billion yen in net profit, up nearly 40 percent from the same period the previous year.

 

Revenue for the three quarters rose 23 percent, with its sales in North America up 30 percent year-on-year thanks to healthy sales of four-wheeled vehicles, it said.

 

Honda also enjoyed good sales in the motorbike business in Asia, where net profit was up more than 50 percent from a year ago.

 

(Agence France-Presse, 31 January 2014 The Roman)

Yellen inherits US Federal Reserve chairman as Bernanke departs

Yellen inherits US Federal Reserve chairman as Bernanke departs

 

Washington (AFP)

 

Respected economist Ms. Janet Yellen was sworn in Monday as the first woman chair of the Federal Reserve, taking on the burden of winding down the Federal Reserve's stimulus without spurring more turmoil.

 

Ms. Janet Yellen inherits the mantle of the world's most powerful central banker from Ben Bernanke, who guided the US and the global financial system through its deepest crisis since the 1930s during his eight years in the job.

 

Nominated to the job last October by President Barack Obama, she will serve a four-year term concurrent to her ongoing 14 year term on the Federal Reserve's board of governors.

 

The respected economist has worked closely with Bernanke during her three-plus years as Federal Reserve vice-chair, and is not expected to depart from his policies aimed at helping lower still-high unemployment levels as long as inflation remains tamed.

 

Janet Yellen, 67, has served in a number of positions in the Federal Reserve, including head of its San Francisco branch, and also has held academic positions at Harvard University and University of California at Berkeley.

 

She is married to economics Nobel prize winner George Akerlof.

 

Bernanke will return to academia, meanwhile, including joining the washington-based think tank the Brookings Institution as a resident fellow.

 

"He will be a major contributor to the task of understanding the momentous events of the past eight years and crafting imaginative, pragmatic strategies to ensure the stability of the national and global economy," said Brookings president Strobe Talbott.

 

(Agence France-Presse, 3 Monday February 2014 The Roman)

Morocco says investors lining up for $9 bn solar project

Morocco says investors lining up for $9 bn solar project

 

[caption id="attachment_11790" align="alignnone" width="400"] (Workers build a thermo-solar power plant in Beni Mathar 20 Thursday August 2009 The Roman. (Reuters))[/caption]

 

Morocco has recruited foreign investors to fund $9 billion solar power project, even though some European lenders have balked due to the location of some planned plants in the disputed Western Sahara, its foreign minister said.

 

Lending sources at German state-owned banks and at multi-lateral lenders such as the World Bank, the European Investment Bank and the European Union have told Reuters they would not finance projects based in Western Sahara.

 

“That is their problem. We have no financing problems. We have several (investors); there are Japan, Gulf countries,” Foreign Minister Salaheddine Mezouar told Reuters on Tuesday in an interview in Madrid, where he was meeting with Spanish business leaders.

 

He declined to give details on the financing contracts with specific parties.

 

Morocco, a net energy importer, wants to develop renewable power to reach 20 percent of its energy supply in 10 years, up from 8 percent now, Mezouar said.

 

The solar project involves five plants, two of them planned in Western Sahara, that would produce a total of 2,000 Mega Watts.

 

Morocco has controlled most of the sparsely populated Western Sahara, former Spanish colony, since 1975.

 

European investor sources told Reuters earlier this year they did not want to support any project in Western Sahara, because it would mean abandoning a neutral position over the conflict.

 

The solar project is focussed on building the first of the five plants.

 

“The other four plants will also happen. The goal is to achieve 2,000 Mega Watts, and we will continue with our plan. The Western Sahara issue has nothing to do with it. The financing is not conditioned on whether plants are in Sahara or not,” the minister said.

 

“Western Sahara needs renewable energy, and the investment will be made. If some people don't want to come, others will.”

 

Saudi Arabia's Acwa Power International won the $1 billion contract for the first solar plant, which is scheduled to start operating next year in Ouarzazate with a capacity of 160 Mega Watts.

 

It awarded the construction to a consortium of three Spanish companies - Sener, Acciona and TSK.

 

Hundreds of Spanish companies do business in Morocco, and more than half of Spain's entire investment in Africa is in Morocco, according to Moroccan figures.

 

Overall, Morocco aims for 15 to 20 percent growth in foreign direct investment a year in the economy, up from 13 percent last year, Mezouar said.

 

Mezouar said that Morocco, which has been more stable than most of its neighbours during the so-called Arab spring in recent years, offers yet more potential for Spanish investors as a base for textile and automotive manufacturing and as a springboard for trade to the rest of Africa.

 

(Fiona Ortiz, Reuters - Madrid)

 

(Al Arabiya News, 5 Wednesday February 2014 The Roman)

 

 

Saudi Arabia to launch $9.5 bn mining industrial city

Saudi Arabia to launch $9.5 bn mining industrial city

 

[caption id="attachment_11784" align="alignnone" width="630"] (The new industrial project would focus on mining, a sector which started “contributing to the national economy,” Saudi Arabia’s finance minister said. (File photo: Reuters))[/caption]

 

Saudi Arabia signed contracts worth 36 billion Saudi riyals ($9.5 billion) for the establishment of a new mineral industrial city in Waad al-Shamal.

 

The kingdom’s mining company, Maaden, also signed a number of deals worth $3.6 billion for the establishment of five new plants in the new city.

 

The new industrial city will focus on mining, a “promising sector that started contributing to the national economy,” Dr. Ibrahim al-Assaf, Saudi finance minister, told Al Arabiya News Channel.

 

The project will bring larger diversity to the country's exports and increase economic growth to the kingdom and the region, according to officials’ remarks during the launch.

 

According to the minister, the project is important on a domestic level, but also more important on a regional scale, “in terms of [providing] employment, and finding services to support the mining sector.”

 

The Ministry of Finance, Saudi Arabia’s Public Investment Fund, the national Saudi Railway Company (SAR), the Industrial Development Fund, and Sanabil Investment Company were among the parties involved in the development of the new industrial city.

 

“The Ministry of Finance [participated] directly through financing the infrastructure of the project, and through institutes associated with it, such as the Public Investment Fund, which participated directly to the investment of the project, or indirectly through providing loans for projects to be established within the city,” Assaf explained to Al Arabiya News Channel.

 

Ministers of petroleum, electricity and economy were among the officials that attended the ceremony.

 

Maaden, the Gulf’s largest miner, recently announced expanding its aluminum exports after signing several contracts to supply Asian markets during 2014, reported the Saudi Gazette in January.

 

The company reported a net loss of $7.8 million in the fourth quarter of 2013, mainly due to low prices for its petrochemical products, Reuters reported.

 

(Staff writer, Al Arabiya News)

 

(Al Arabiya News, 5 Wednesday February 2014 The Roman)

 

Dubai financial center posts double-digit growth for 2013

Dubai financial center posts double-digit growth for 2013

 

[caption id="attachment_11778" align="alignnone" width="400"] (The Dubai International Financial Center said it grew at double-digit rates last year, due to attracting more tenants from Asia and emerging markets. (File photo: Reuters))[/caption]

 

The Dubai International Financial Center, the top banking hub in the Middle East, said it grew at double-digit rates last year as it attracted more tenants from Asia and other emerging markets.

 

The number of active registered companies operating within the DIFC rose 14 percent to 1,039, while their combined workforce expanded 11 percent to 15,600, it said on Tuesday.

 

Jeffrey Singer, chief executive of the DIFC Authority, which manages the financial free zone, said the DIFC would focus this year on developing new areas such as Islamic finance, family-owned businesses and commercial links with Africa.

 

Occupancy rates in core office buildings owned or managed by the DIFC are now close to 100 percent, so more office space is being made available in other buildings that could accommodate as many as 15,000 more workers, the DIFC said.

 

(Reuters, Dubai)

 

(Al Arabiya News, 4 Tuesday February 2014 The Roman)

 

Morgan Stanley to pay $1.25 bn in mortgage settlement

Morgan Stanley to pay $1.25 bn in mortgage settlement

 

New York (AFP)

 

US banking giant Morgan Stanley Tuesday said it agreed to pay $1.25 billion to settle charges that it misled investors on the sale of mortgage-backed securities ahead of the housing bust.

 

Morgan Stanley will boost its legal reserves by $150 million to pay out the settlement to the US Federal Housing Finance Agency, Morgan Stanley said in a securities filing.

 

The settlement marks the latest big government agreement with a US banking giant in the aftermath of the housing bust.

 

In November, JPMorgan Chase agreed to a $13 billion settlement on mortgage-backed securities.

 

Bank Of America and Goldman Sachs have also announced big settlements.

 

The settlement resolves a September 2011 suit in which the FHFA, the conservator of Freddie Mac and Fannie Mae, alleged that Morgan Stanley made "untrue statements and material omissions" in the sale of about $11 billion in worth of mortgage security securities, Morgan Stanley said in a 2013 securities filing.

 

Tuesday's securities filing described the deal as "an agreement in principle" and said it is still subject to "final approval" by the parties.

 

(Agence France-Presse, 5 Wednesday February 2014 The Roman)

Janet Yellen sworn in as first woman US Federal Reserve chairman

Janet Yellen sworn in as first woman US Federal Reserve chairman

 

[caption id="attachment_11763" align="alignnone" width="722"] (Federal Reserve Vice Chairman Janet Yellen (right) is sworn as Federal Reserve Chairman by Federal Reserve Board Governor Daniel Tarullo at the Federal Reserve Building, on 3 Monday February 2014 The Roman in Washington, DC. Ms Janet Yellen was sworn in on Monday to a term as chairman of the United States central bank, the Federal Reserve said in a statement. (Photo - AFP))[/caption]

 

WASHINGTON (Reuters) - Ms Janet Yellen was sworn in on Monday to a term as chairman of the United States central bank, the Federal Reserve said in a statement.

 

Ms Yellen succeeds Ben Bernanke to become the first woman to head the Federal Reserve.

 

Her term as chairman ends February 3, 2018.

 

The oath was administered by Governor Daniel Tarullo, the Federal Reserve said.

 

(The Straits Times, 3 Monday February 2014 The Roman)

Lloyds bank takes extra £2.0 bn hit for mis-selling claims

Lloyds bank takes extra £2.0 bn hit for mis-selling claims

 

London (AFP)

 

Britain's state-rescued bank Lloyds said Monday it will take an extra hit of almost £2.0 ($3.3 billion, 2.4 billion euros) to cover mis-selling claims.

 

Lloyds will take a provision of £1.8 billion for claims relating to the mis-selling of payment protection insurance, and £130 million relating to over the mis-selling of interest rate hedging products to small businesses, it said in an update before annual results on February 13, adding it expects to make a "small" pre-tax profit.

 

(Agence France-Presse, 3 Monday February 2014 The Roman)

 

Jordan’s Arab Bank 2013 net profit up 43 percent

Jordan’s Arab Bank 2013 net profit up 43 percent

 

Jordan’s largest lender, Arab Bank Group, posted a 43 percent rise in 2013 net profit to $501.9 million on the back of higher revenues, with its chairman saying a conservative policy eased the impact of political upheaval across the region.

 

Chairman Sabih al-Masri said in a statement the bank, one of the Middle East’s major financial institutions, saw deposits increase by $1.5 billion to $34.4 billion against $32.9 billion at the end of 2012.

 

“This was in spite of the challenging environment in the region with the solid growth in operating income reflecting prudent and conservative policies the bank preserved and the strategy it pursued,” Masri said.

 

Arab Bank, which has a $45.6 billion balance sheet spread across 30 countries and five continents, has seen a slowdown in profit growth in recent years as it put aside provisions to cover non-performing loans by businesses reeling from the global downturn.

 

Bankers say the wave of political unrest across the region since 2011 would continue to affect the bank’s business in 2014, but a diversified portfolio would help reduce risks.

 

(Reuters, Amman, 25 Saturday January 2014 The Roman)

(Al Arabiya News, 25 Saturday January 2014 The Roman)

 

Energy giant Shell posts sliding 2013 profits

Energy giant Shell posts sliding 2013 profits

 

London (AFP)

 

Oil giant Royal Dutch Shell on Thursday posted a 39-percent slump in annual net profits, two weeks after shocking the market with a profit warning.

 

Earnings before taxation dived to $16.371 billion last year, compared with $26.712 billion in 2012, the London-listed company confirmed in a results statement.

 

The Anglo-Dutch energy major also outlined plans to sell off $15 billion of assets over the next two years and slash capital expenditure.

 

Shell shocked investors earlier this month with its first profit warning in a decade, blaming high exploration costs, pressures across the oil industry and disruption to Nigerian output.

 

The group confirmed Thursday that profit on a current cost of supplies (CCS) basis or current-cost accounting -- which strips out changes to the value of oil and gas inventories -- sank to $16.7 billion from $27.2 billion.

 

CCS profit plunged 70 percent to $2.2 billion in the fourth quarter, or three months to December, compared with $7.4 billion in the same part of 2012.

 

"Our momentum slowed in 2013. We must improve our financial results, achieve better capital efficiency and continue to strengthen our operational performance and project delivery," said chief executive Ben van Beurden in the earnings release.

 

He added: "Our overall strategy remains robust, but 2014 will be a year where we are changing emphasis, to improve our returns and cash flow performance."

 

Van Beurden revealed that the group would increase the pace of asset sales to $15 billion in 2014-2015.

 

Capital spending will also be reduced to $37 billion in 2014, from $46 billion in 2013.

 

The group also confirmed that CCS profit excluding one-off items sank to $2.9 billion in the fourth quarter, down from $5.6 billion.

 

Shell's 2013 performance was also hit by higher depreciation, lower upstream volumes and weak industry conditions in downstream oil products.

 

This month's surprise profits warning and dire results mark a disappointing start to van Beurden's tenure as chief executive.

 

The Dutch national took over from Peter Voser on January 1.

 

(Agence France-Presse, 30 Thursday January 2014 The Roman)

 

Britain posts fastest annual growth

Britain posts fastest annual growth



London (AFP)



Britain's economy grew at the fastest rate last year since before the financial crisis but output dipped in the final quarter of 2013, official data showed on Tuesday.



Gross domestic product expanded by 1.9 percent in 2013, the biggest expansion since 2007, the Office for National Statistics (ONS) said in a statement.



GDP had grown by only 0.1 percent in 2012, while the IMF recently said it expected the British economy to grow by 2.4 percent this year.



Economic output meanwhile grew by 0.7 percent between October and December last year compared with the third quarter of 2013, when GDP increased by 0.8 percent, the ONS added.



Chancellor of the Exchequer George Osborne said that overall, Tuesday's data was "more evidence that our long term economic plan is working".



He added in a statement: "But the job is not done, and it is clear that the biggest risk now to the recovery would be abandoning the plan that's delivering jobs and a brighter economic future."



Prime Minister David Cameron's coalition government has embarked on a massive austerity drive since coming to power in 2010, two years after the start of the financial crisis, in a bid to bring down a record deficit inherited from the previous Labour administration.



The fourth-quarter slowdown meanwhile took the shine off Britain's recent recovery.



"The 0.7-percent rise in UK GDP in the fourth quarter is a touch disappointing given the recent strength of the business surveys," said Martin Beck, economist at Capital Economics research group.



"But it still takes full-year growth in 2013 to 1.9 percent, the best performance since 2007 and possibly the strongest growth in the G7", which comprises also the United States, Germany and Japan.



In the fourth quarter, Britain achieved increases in output from the industrial and services sectors, while construction fell, according to the ONS data.



The slowdown could meanwhile dampen expectations of the Bank of England raising its main interest rate this year, analysts said on Tuesday.



Bank of England chief Mark Carney last week played down speculation that its key rate was due to rise from a record-low British level of 0.50 percent following a shock fall in unemployment.



The possibility of a rise in the bank's key rate rose after official data showed that British unemployment fell to 7.1 percent, just above the 7.0 percent threshold that Carney set as a potential trigger for a tightening of monetary policy.



(Agence France-Presse, 28 Tuesday January 2014 The Roman)

Further IT glitch hits UK bank customers

Further IT glitch hits UK bank customers

 

London (AFP)

 

Britain's Lloyds banking group apologised on Sunday after many of its debit card customers were left unable to access their money following a server hitch.

 

The financial institution, Britain's largest retail bank group, later said it had it had fixed the problem that left customers of its members -- Halifax, Lloyds, Bank of Scotland and TSB -- unable to use debit cards or automated teller machines (ATMs).

 

"We apologise that earlier today, between 3 pm and 6 pm, some customers were unable to complete their debit card transactions," said a tweet from Lloyds Banking Group.

 

"Although the majority of transactions were unaffected, we are very sorry for the inconvenience that this will have caused.

 

"At the same time, some customers encountered problems at approximately half of our 7,000 ATMs. This was resolved by 7.30 pm, and all of our ATMs are now working."

 

TSB chief Paul Pester earlier took to Twitter to apologise for the glitch.

 

"I'm working hard with my team now to try to fix the problems," he said, explaining that two of the seven servers used to process the bank's debit card payments had malfunctioned.

 

"It'll take a while to sort the backlog," he added.

 

"Sorry. Customers may have problems for an hour or so."

 

IT problems have recently plagued UK banks.

 

Shortly before Christmas, a technical fault meant around 750,000 Royal Bank of Scotland customers were unable to use their credit and debit cards.

 

(Agence France-Presse, 26 Sunday January 2014 The Roman)