Observer & Busness 3 Mar 2012 - Oman Daily Observer

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24 OMAN/INTERNATIONAL SATURDAY, MARCH 3, 2012 Asian stock markets lifted by US data, European moves HONG KONG — Asian markets' upward trend since the start of the year continued yesterday as optimism was boosted by a fresh set of upbeat US data and positive news from the euro zone. Improving risk sentiment also supported the euro against the yen but strong oil prices, which hit four-year highs in New York, tempered gains. Tokyo added 0.72 per cent, or 69.66 points, to end at 9,777.03, Sydney rose 0.41 per cent, or 17.6 points, to 4,273.1 and Seoul added 0.22 per cent, or 4.38 points, to 2,034.63. Hong Kong gained 0.81 per cent, or 174.30 points, to close at 21,562.26 and Shanghai jumped 1.43 per cent, or 34.58 points, to 2,460.69. In Europe ministers agreed measures linked to a Greek debt restructuring and the beleaguered country is expected to be given the all clear for its second bailout next week. The move came at a twoway summit where leaders are discussing measures to promote long-term growth and jobs in the region. Investors around the world JAPANESE businessmen walk past an electronic stock quotation board in Tokyo yesterday. have also been encouraged by a committee's crucial ruling that Greece was not in default on its bonds in the 107 billion euro ($142 billion) write-off deal. default ruling would have triggered the payment of credit default swaps, insurance on the debt, which could have tanked Athens' entire 237 billion euro second bailout. Adding to positive sentiment was news from the US Labor Department that new claims for unemployment insurance, a key indicator of the pace of layoffs, fell slightly last week. Japan spending down as deflation persists TOKYO — Japanese unemployment inched up and household spending fell more sharply than expected in January, government data showed yesterday, but analysts said the nation's economic recovery was still on track. Figures from the internal affairs ministry showed the unemployment rate crept up to 4.6 per cent in January from a revised 4.5 per cent in the previous month while household spending dropped by 2.3 per cent year-on-year. The inflation-adjusted fall in spending was far bigger than the 0.8 per cent dip economists had expected. However, analysts said the figures did not indicate Japan's economic recovery was in trouble because they were more than offset by upbeat production figures earlier in the week. The recent batch of data confirmed "the economy is on a gradual recovery track," said Satoshi Osanai, economist at Daiwa Institute of Research. "The data on production and capital spending continued to be positive. As production recovers and currency exchange rates help improve corporate earnings, we expect employment and consumption will also pick up," he said. The yen has tracked lower since the Bank of Japan surprised markets two weeks ago with the announcement that it would pump $130 billion more into the economy in the latest push to combat deflation. The yen changed hands at 81.20 to the dollar and 108.17 to the euro in Tokyo midday trade yesterday, much weaker than 76.19 and 99.56 of a month ago. The internal affairs ministry also said Japan's core consumer prices fell 0.1 per cent in January from a year earlier, as the deflation that has plagued Japan for years persisted. Deflation is bad for the economy because it encourages consumers to put off spending in the belief their intended purchases will be cheaper in the future, softening demand and hurting producers. Yoshiro Sato, economist at Credit Agricole bank, said "there is still room for employment growth especially in manufacturing industries." "Considering the expected recovery in industrial production going forward on the back of supply chain normalisation and reconstruction demand, we maintain our view that employment in those industries will recover and contribute to stable labour market conditions going forward." Japanese exporters were hit badly by the massive earthquake and tsunami in Japan and flooding in Thailand last year. The trade and industry ministry said on Wednesday Japan's industrial production in January rose by a bigger-than-expected 2.0 per cent from the previous month. — AFP Claims have been trending downward since the middle of last year and are now at levels last seen in March 2008, while in January, the unemployment rate fell for the fifth straight month, to 8.3 per cent, the lowest since February 2009. A recent series of positive employment reports has led some analysts to predict the jobless rate will fall again when the Labor Department releases its February job report on March 9. "There's definitely a bit of relief out there," said Sydneybased CBA Institutional Equities head of sales trading, Justin Rooney, referring to the US data and receding European debt worries. However, Rooney said "the oil price is becoming a bit of a handbrake for the market", according to Dow Jones Newswires. On oil markets New York's main contract, West Texas Intermediate crude for delivery in April, fell 57 cents to $108.27 per barrel while Brent North Sea crude for April was down $1.06 to $125.56 14. Prices had surged overnight on an Iranian media report about a pipeline fire in Saudi Arabia, which sent Brent to its highest level since July 2008 — when they were retreating from their record highs. However, Saudi officials later issued a statement denying the report, which eased costs slightly. TEL: 24601003, 24600586 • FAX: 24600736 • WEBSITE: www.salalahport.com Prices have also been lifted by the upbeat outlook for the US economy, while easing European debt woes are also providing support. However, the increased cost of the black gold has led to caution among some dealers due to inflation fears. On currency markets the euro fetched $1.3275 and 108.38 yen in Tokyo afternoon trade, compared with $1.3311 DETROIT — US auto sales rose nearly 16 per cent in February and the annual sales rate leapt to its best level in four years, helped by a surprising sales gain by General Motors Co and strong results from Chrysler Group LLC and Ford Motor Co. For a second month in a row, sales surpassed even the most optimistic expectations. Analysts ascribed the gains partly to rising consumer confidence and upbeat US economic data. "That in itself is probably a big green-light indicator for consumers," said TrueCar.com analyst Jesse Toprak. "It's telling them it's OK to buy a car. You'll be fine." The annual sales rate, a closely watched industry yardstick, jumped to 15.1 million vehicles, according to Autodata, the best monthly showing since February 2008, before the financial crisis that sent Detroit into a tailspin. Analysts had expected an annual pace of 14 million vehicles, with the high estimate at 14.4 million. Vehicle sales rose 15.7 per cent to more than 1.1 million. The gains came even as fuel prices shot up 30 cents a gallon last month, which spurred compact car sales. Sales of Ford's Focus small car more than doubled in February. Toprak said the wider availability of financing last month helped some consumers offset the rising cost of fuel. American drivers also sought to replace their aging and 107.97 yen in New York. The dollar was changing hands at 81.65 yen against 81.10 yen in New York. Gold was at $1,714.50 an ounce at 0820 GMT, compared with $1,717.20 late on Thursday. In other markets, Manila surged 1.57 per cent, or 77.69 points, to 5,016.30. The index closed at a new vehicles, which contributed to the better-than-expected sales performance. "There are a number of factors that are helping release this pent-up demand," GM's US sales chief, Don Johnson, told analysts on a conference call. "Perhaps the most encouraging sign is that home builders are becoming more optimistic." Some analysts and industry executives have said that the US auto sector will not recover significantly until US home prices pick up and consumers feel more prosperous. The auto industry is now in its third year of a fitful recovery from a severe slump that led to the bankruptcies of GM and Chrysler in 2009. The US industry was selling nearly 17 million vehicles a year on average in the 10-year period ending in 2007. Last year, the industry sold 12.8 million vehicles. Short-term fluctuations in fuel prices will not hurt demand for new vehicles this year, but they could influence consumer preferences on what record high above the psychological 5,000-point level. Ron Rodrigo of DBP-Daiwa Securities told Dow Jones Newswires there were expectations that the Philippines may soon get a credit rating upgrade. This helped sustain positive sentiment, he said, a day after the central bank trimmed its key interest rates. Alliance Global added 1.18 per cent to 11.98 pesos, Philippine Long Distance Telephone rose 0.63 per cent to 2,868 pesos and Metro Pacific Investments gained 2.54 per cent to 3.63 pesos. Taipei rose 0.32 per cent, or 25.70 points, to 8,144.04 Chunghwa Telecom was 0.44 per cent higher at Tw$92.2 while Taiwan Semiconductor Manufacturing Co fell 0.12 per cent to Tw$80.0. Wellington rose 1.35 per cent, or 44.95 points, to 3,375.81. Sky City rose 1.8 per cent to NZ$3.87, its highest level since May 2008, Telecom added 1.6 per cent to NZ$2.19 and Chorus was 1.8 per cent up at NZ$3.36. — AFP UK ‘bad bank’ repays £2.1bn to taxpayer LONDON — The British "bad bank" running down the loans of bailed-out lender Northern Rock repaid £2.1 billion ($3.4 billion) to the government last year after its annual profits more than doubled as fewer home-owners had trouble with repayments. UK Asset Resolution (UKAR) is effectively a "zombie bank" that doesn't take new business and runs down the loans held by Northern Rock and Bradford & Bingley which had to be rescued when they ran into trouble in the credit crisis. UKAR still owes the gov- LONDON —British cleaning to pest control firm Rentokil Initial said problems at its struggling City Link parcels business would likely result in another loss for the division in 2012, as it posted a 6 per cent drop in group full-year profit. Rentokil, which offers services from hiring work uniforms and tropical plants to catering and security, said 2011 adjusted pretax profit was £184.4 million ($294.3 million), down 6 per cent from 2010 at constant exchange rates, but in ernment 46.6 billion pounds, down from 49.7 billion when it was formed in October 2010. line with consensus according to a Reuters poll. Despite aims to up productivity at City Link and cut costs, its drag on group profit has stretched to around four years. For 2011, it posted a bigger than expected operating loss of £31.3 million. Referring to it as "the problem child", Chief Executive Alan Brown said: "City Link continues to disappoint. However, we remain committed to resolving the key revenue and cost control issues fac- Richard Banks, UKAR CEO, said he expects to repay the majority of the remaining ing this business," before later conceding to reporters that he expected the division to make government loan over the next decade, with repayments accelerating as home loans are repaid. UKAR made an underlying profit of 1.1 billion pounds last year, up from 444 million in 2010, after a fall in losses on bad debts. Banks said arrears were likely to rise this year, even though low interest rates should prevent a major problem for customers. "We think interest rates are going to remain at the low level for the next 12 months, but there are still pressures on disposable income, which is go- another loss for 2012, albeit at lower levels than 2011. Asked if the group would ing to make life hard for some of our customers," he said. "We expect more customers to experience difficulties during 2012." UKAR has 657,000 mortgage customers — down from 726,000 a year earlier — and properties more than three months in arrears fell by 14 per cent to 33,216 at the end of December. Banks said he was willing to sell portfolios of loans to accelerate the pace it repays the government, but interest from private equity firms and hedge funds had not been at attractive prices. — Reuters Rentokil struggles to deliver City Link turnaround consider selling City Link, Brown said: "Like all of our portfolio, it is not for sale, but it could of course be bought", adding that its new management team, brought in late last year, deserved time to turn it around. The FTSE 250 firm's decision to reinstate a dividend of 1.33 pence on the back of growth elsewhere in the group failed to lift the gloom as shares dropped 5 per cent to 76.35 pence at 0940 GMT, making it the index's biggest faller. — Reuters US Feb auto sales rise to highest level in 4 years types of cars to buy, analysts said. Analysts are watching gasoline prices, which early last year contributed to a softening in the economy that nearly pushed it back into recession. Chrysler posted a February US sales increase of 40 per cent compared with the yearago period. Ford saw a 14 per cent rise, Volkswagen AG was up 42.5 per cent, Kia Motors Corp gained 37.3 per cent and Nissan Motor Co Ltd was up 15.5 per cent. But sales of trucks and sport-utility vehicles were better than expected in February, analysts and executives said. This is in stark contrast to spending habits in 2008 when average gasoline prices first topped $4 a gallon, spurring a "mass defection" from trucks to smaller cars, said Al Castignetti, head of the Nissan brand in North America. "Every time it happens, up until this point, we've seen the exodus," he said. "Is the American public being conditioned to accept higher gas prices?" — Reuters
By Kabeer Yousuf THE Muscat International Airport expansion project, an ambitious undertaking conceived in line with the government’s Vision 2020 economic development Kunis to play Jacqueline? Page 13 strategy, is making excellent headway, according to authorities. The project, upon completion by April 2014, will enable the Muscat International Airport to handle more than 12 million passengers annually. CAS Theatre Day from March 8 Page 26 Memory training for brain Page 27 Extreme Sailing: Competing for glory on the water Page 28 Fea ures Saturday, March 3, 2012 Apparently the largest project undertaken in the history of the Sultanate by the Ministry of Transport and Communications, also encompasses the multi-million- multi-million- rial ATC Tower which is expected to be complete by October 2012. It is a part of the overall development and expansion of the Muscat International Airport (MIA) The project, upon completion by April 2014, will enable the Muscat International Airport to handle more than 12 million passengers annually Apparently the largest project undertaken in the history of the Sultanate by the Ministry of Transport and Communications, also encompasses the multi-million-rial ATC Tower- Main Contract MC2 as well which is expected to be complete by October 2012. It is a part of the overall development and expansion of the Muscat International Airport (MIA). The works also involve construction of several buildings including the 3,710m 2 and 97m high ATC Tower, a Data Centre of 2,834m 2 , Crash Fire Rescue – 5,500m 2 , Air Traffic and Meteorology complex – 20,266m 2 , Contingency and Training – 6,000m 2 , Guard House ATM Complex – 17m 2 , ATM Complex Utility Yard – 200m 2 , C and T Centre Utility Yard – 180m 2 . In addition to the above edifices, the contract also includes an option for a Sea Rescue Building. Carillion Alawi, a well-known construction firm, is working on the project on a round-the-clock basis so as to complete it on schedule. London-based TPS, the engineering and architectural design arm of the Carillion Group, is the principal consultant for the MC2 package being undertaken by the Group on behalf of the ministry. Designed in keeping with the International Air Transport Association (IATA) Service Level A standards, the new Muscat International Airport will be able to accommodate the staggering number of passengers with the best overall experience when travelling in and out of Oman. The existing airport based on a design way back in 1973 has now reached its maximum capacity and the design of the new airport aims to meet the nation’s passenger growth numbers, according to a statement from the Oman Airports Management Authority. Muscat International Airport has in recent years experienced a period of healthy growth in passenger numbers, this positive and considerable growth is expected to continue for the foreseeable future. It is being driven by a number of factors including fleet and route expansion by the national carrier, Oman Air, and increase in capacity and frequency by the existing carriers. This in turn is being fuelled by the growth and development of the tourism industry within the country as well as strong commercial and economic activities. The project is part of the Sultanate’s plan to expand and upgrade Muscat International Airport. The Transport and Communications Ministry awarded an RO 706m ($1.8bn) contract to a consortium of US’ Bechtel, Oman’s Bahwan Engineering and Turkey’s Enka to build the new passenger terminal at Muscat International airport. The new building will cover a total area of 300,000 square metres and will have a total capacity of 12 million passengers annually. Some of the new facilities and features of the new airport include a Passenger Terminal Building which Carven’s young designer keeps it real Page 13 will be in accordance with the international standards, a 97 metre high Air Traffic Control (ATC) tower, two runways, 28 contact gates, more than 7,000 parking spaces, dual 3 lanes access road and striking landscaping along the access and at the entrance to the airport and new Passenger Terminal Building. COWI and Larsen, two popular names in the infrastructure arena, has formed COWI-Larsen Joint Venture to be the main consultant. An exemplary piece of architectural brilliance, the airport will not only be an attractive edifice to see but it has also a dynamic and functional structure, which has been designed to accommodate several future expansion stages. Several elements of comfort and convenience have all been carefully considered in order to provide passengers with the highest standards of comfort and to make their experience at Muscat International Airport remarkable. This concept has indeed helped the authorities to design the new Passenger Terminal Building in such a way that it will let light to travel through large spaces. The project also includes some 70 buildings apart from the terminal, including a 97 metre high control tower and an Air Traffic Management Centre. Furthermore, the existing runway is to be upgraded and supplemented with a new runway. Both runways will be able to serve the world’s largest aircraft, the Airbus 380. The project includes additional 30 remote stands. The project also includes multi-level parking facilities and a highway to the airport. Keeping future expansion in mind, the new airport is designed in such a way that the second stage expansion can handle 24 million passengers annually, followed by 36 million and 48 million in the third and fourth phases respectively. — Pictures by Faisal al Balushi
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Observer & Busness 3 Mar 2012 - Oman Daily Observer

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