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16 INTERNATIONAL OMANDAILYOBSERVER BUSINESS SATURDAY l FEBRUARY 18 l 2017 Business Briefs Allianz warns year ahead uncertain after strong 2016 Asia shares ease after run of gains; oil lifted by Opec supply cut hopes Business Briefs Business Briefs Business Briefs Business Briefs Business Briefs FRANKFURT AM MAIN: German insurance giant Allianz reported a rise in profits for 2016 and increased its dividend, but warned that political and market uncertainty could make for an unpredictable 2017. Allianz increased net profit by 4 per cent to 6.9 billion euros ($7.4 billion) in 2016, it said in a statement, slightly overshooting analysts’ forecasts. The firm notched up 122 billion euros in revenues last year, down 2.2 per cent from 2015, but still beating its own forecast. Operating, or underlying profit edged up 0.9 per cent 10.8 billion euros. In the fourth quarter alone, Allianz booked a 23 per cent increase in net profit to 1.7 billion euros. “Positive developments in all business segments” had put the group “on track” to meet its goals for 2018, said chief financial officer Dieter Wemmer. The life and health insurance unit put in the best performance among the group’s divisions, with operating profit there growing by 9.3 per cent. By contrast, operating profit at the property and casualty insurance arm fall back 4.2 per cent and underlying earnings in its asset management division were down 4 per cent. — AFP 26pc on integration woes LONDON: Essentra Plc, a supplier of speciality plastic and packaging components, said full-year profit fell 26 per cent on flagging sales at its health and personal care packaging unit, due to integration issues from an acquisition completed in 2015. This reiterates the challenges the company has been facing, prompting it to issue profit warnings three times in the past 12 months. Essentra shares opened 3.9 per cent lower at 405 pence at 0805 GMT on Friday on the London Stock Exchange. The health and personal care packaging unit, which bought the specialist packaging division of the Clondalkin Group, is the company’s biggest business, accounting for about 40 per cent of total revenue. Operating profit at the unit fell 44 per cent. Milton Keynes, Buckinghamshire-based Essentra had indicated on January 23 that sales at the business were more challenging than previously expected. The company had said in January that its new chief executive had initiated a strategic review of the company and that the health and personal care unit would be receiving “specific shortterm focus and remedial attention” from him. — Reuters S&P downgrade warning sends Toshiba shares falling The logo of Toshiba Corp is seen at its headquarters in Tokyo. — Reuters TOKYO: S&P Global Inc said in a report on Friday it could cut its rating of Toshiba Corp (6502.T) credit by several notches should the Japanese firm receive financial support that includes debt restructuring, sending Toshiba stock down 9 per cent. S&P rates Toshiba credit as junk, at CCC+, following downgrades in December and January, after the conglomerate flagged a multi-billion dollar writedown in its nuclear power business. The credit-rating firm expects banks to help Toshiba, including by extending deadlines for loan repayments. Any further downgrade would prompt banks to charge Toshiba even higher rates for credit, at a time when the conglomerate is dealing with the crippling writedown while still working to recover from a financial scandal in 2015. — Reuters SINGAPORE: Asian stock markets took a breather on Friday from their recent surge as investors booked profits, while the dollar inched up after Thursday’s slide and optimism over possible renewed supply cuts by Opec lifted oil prices. Financial spreadbetter CMC Markets expects Britain’s FTSE 100 to start the day flat, Germany’s DAX to be slightly higher and France’s CAC 40 to be marginally lower, with markets failing to recover Thursday’s losses. MSCI’s broadest index of Asia-Pacific shares outside Japan pulled back 0.2 per cent, on track to end the week up 1.2 per cent, its fourth straight weekly gain. Overnight, Wall Street lost momentum, with the Dow Jones Industrial Average barely eking out its sixth straight record high, while the S&P 500 and Nasdaq snapped a seven-day winning streak as investors slowed buying to digest recent gains. US President Donald Trump’s first solo news conference on Thursday, where he adopted a combative stance against the news media and deflected questions about contacts between his presidential campaign and Russian operatives, also gave investors pause. “Apart from a reflection of the slight easing in US market momentum after several strong days, investors are making some greater allowance for rising risk,” said Angus Gluskie, managing director of White Funds Management in Sydney. “Trump’s erratic performance in the press conference has had a destabilising influence on investor confidence.” The arrest of Samsung Group chief Jay Y Lee over his alleged role in a government corruption scandal is also a source of concern, Gluskie said. Until Thursday, the index had beaten its previous intraday highs for seven consecutive sessions, and closed at 19-month highs in the past two. A batch of positive economic data out of Asia this week, driven by improving exports and rising commodity prices, has bolstered shares, although concerns linger that any protectionist threats posed by Trump could reverse the recovery. On Friday, Singapore revised its fourth-quarter gross domestic product growth sharply higher. Earlier in the week, Taiwan raised its 2017 economic growth target to a three-year high, Indonesia’s January exports rose at the fastest pace in more than five years and China’s January inflation picked up by more than expected to near six-year highs. Japan’s Nikkei closed 0.6 per cent lower, down 0.7 per cent for the week. Australian shares fell 0.2 per cent at the close, shrinking the week’s gains to 1.5 per cent. Chinese shares slipped after earlier touching a near two-month high after the securities regulator said that, starting on Friday, it will relax certain rules on stock index futures trading as restrictions imposed during the 2015 stock market crash are unwound. The CSI 300 index lost 0.4 per cent after gaining as much as 0.5 per cent, on track for a weekly advance of the same magnitude. Hong Kong shares dropped 0.7 per cent, but are still poised to close up 1.6 per cent for the week. The dollar edged up, but remained near the oneweek low hit on Thursday, when it posted its biggest one-day drop in more than two weeks, as uncertainty about the timing of the next Federal Reserve rate hike offset the impact of stronger economic data. The dollar climbed almost 0.2 per cent on Friday — to 113.41 yen, up by the same percentage for the week. It lost about 0.8 per cent on Thursday. The dollar index, which tracks the greenback against a basket of trade-weighted peers, was fractionally higher at 100.49, on track to end the week 0.3 per cent lower. It tumbled 0.7 per cent on Thursday. The euro was little changed at $1.0671 on Friday, retaining Thursday’s 0.7 per cent gain, and set to end the week 0.3 per cent higher. The stronger dollar on Friday weighed on gold, which slipped 0.1 per cent to $1,237.36 an ounce. But the precious metal remains poised for a 0.3 per cent rise for the week. Oil prices built on Thursday’s gains, driven by a report that the Organization of Petroleum Exporting Countries may consider extending its oil supplyreduction pact with non-members and may even apply deeper cuts if inventories don’t fall to a targeted level. For now, that optimism appears to be winning the tug of war with concerns over a rise in US production, but the worry is set to leave oil prices with a weekly loss. US crude added 0.2 per cent to $53.42 a barrel, but is headed for a decline of 0.8 per cent for the week. Global benchmark Brent crude advanced 0.1 per cent to $55.74, narrowing the week’s loss to 1.7 per cent. — Reuters German minister backs Peugeot and Opel deal after GM assurances LONDON/FRANKFURT: Germany expects PSA Group’s proposed acquisition of General Motors’ Opel business to go ahead, a minister said, after the US carmaker sought to allay fears of large-scale plant closures. “I expect it to take place,” Economy Minister Brigitte Zypries told reporters after discussions with senior executives from General Motors and PSA, maker of Peugeot and Citroen cars. The German government is “doing everything we can” to preserve Opel’s domestic plants, Zypries said. Talks on a sale of GM’s European arm to PSA were confirmed by both companies on February 14, causing alarm in London and Berlin over possible job cuts. Germany accounts for half of GM Europe’s 38,000 staff, with 4,500 in Britain where the company operates under the Vauxhall brand. Two sources close to PSA said on Thursday that job and plant cuts were part of the tie-up talks, with the two Vauxhall sites in Britain in the front line. However British Business Minister Greg Clark said he had been told by GM President Dan Ammann that there was no plan to scrap the Vauxhall plants in the UK. “I was reassured by GM’s intention, communicated to me, to build on the success of these operations rather than rationalise them,” Clark said in a statement, vowing to maintain “close contact” with both carmakers as talks progress. Little is known about the terms of the proposed PSA-Opel deal, or whether GM would even keep a stake in the combined entity. PSA declined to comment on the talks or the prospect of restructuring. ‘NO ASSURANCES’: However, Britain’s Unite trade union, which met with Ammann and Clark, said it had not received the guarantees it sought. “There’s no assurances at the moment,” Unite leader Len McCluskey told Sky News. “My immediate priority now is to understand where Peugeot is now in this process.” Unite is seeking urgent discussions with PSA A pedestrian stands in front of an electronic quotation board flashing the Nikkei key index of the Tokyo Stock Exchange (L) and the current exchange rate of the Japanese yen against the US dollar (R) in Tokyo on Friday. — AFP “Apart from a reflection of the slight easing in US market momentum after several strong days, investors are making some greater allowance for rising risk” The logo of German car manufacturer Opel is pictured at the company headquarters in Ruesselsheim. — Reuters Both carmakers are privately making the case that Opel would face sharper cutbacks under GM’s continued ownership than under PSA’s Chief Executive Carlos Tavares, McCluskey said. Both carmakers are privately making the case that Opel would face sharper cutbacks under GM’s continued ownership than under PSA’s, sources close to the matter have said. GM had pledged “renewed actions” to restore its European business to profitability before news of the talks broke. PSA is also pledging to “maintain Opel as a German company in full compliance with German labour law”, according to a person briefed on its contacts with political and union leaders. UK JOBS: Another source with knowledge of the PSA-Opel talks said on Thursday that Britain’s June referendum vote to leave the European Union was a factor weighing against UK plants. “It’s much easier to cut jobs in Britain than Germany,” the person said. “Restructuring is very likely to happen at the Vauxhall plants.” The German minister’s latest comments contrasted sharply with her initial reaction two days earlier, when she said the companies’ failure to involve labour or local government representatives in the deal talks was “totally unacceptable”. — Reuters
FOOTBALL 17 SATURDAY l FEBRUARY 18 l 2017 SPORTS OMANDAILYOBSERVER Dzeko forms a timely boost for title-chasing Roma Bayern Munich’s Spanish midfielder Thiago Alcantara (R) celebrate scoring with Bayern Munich’s defender Philipp Lahm during the UEFA Champions League round of sixteen football match between FC Bayern Munich and Arsenal in Munich, southern Germany, on February 15, 2017. — AFP MILAN: Edin Dzeko hit his second successive Europa League hat-trick to edge closer to his all-time season record, and give Roma’s title hopes a timely boost ahead of Sunday’s visit of Torino. Dzeko, who also hit a hat-trick against Viktoria Plzen in November, took the match ball home from Villarreal after a 4-0 rout in Spain to give to his daughter after taking his Europa League-leading tally to eight goals. Also tied with Juventus striker Gonzalo Higuain at the top of Serie A on 18 league goals, and with two from the Italian Cup, the Bosnia striker now has 28 overall — only one short of his all-time record of 29, set at Wolfsburg in 2009-2010. “Tonight we showed what we’re made of. We won 4-0 at a big Spanish club, they were a really good side,” said Dzeko. “I’m not that surprised to be scoring so many goals. It was always like that, only last season that really didn’t go well for me. “But I don’t want to stop. I want to score more.” Keeping the goals coming will be crucial at the Stadio Olimpico if Roma are to thwart a robust Torino side that hit five in a 5-3 win over Pescara last week. Torino striker Andrea Belotti struck twice last week and is only one goal behind the league’s leading pair with 17. Roma, seven points behind leaders Juventus, can ill afford to slip up. Lahm backs Bayern’s struggling Mueller in Berlin Roma’s Edin Dzeko (centre) celebrates at the end of the Europa League round of 32 match against Villarreal. — AFP BERLIN: After thrashing Arsenal in mid-week, leaders Bayern Munich return to Bundesliga business at Hertha Berlin on Saturday with captain Philipp Lahm backing Thomas Mueller to return to form. Bayern head to the capital with a seven-point lead in Germany’s top flight and one foot in the Champions League’s quarterfinals after hammering Arsenal 5-1 in Wednesday’s last 16, first-leg. Carlo Ancelotti opted for Thiago Alcantara instead of Mueller to run Bayern’s attack against the Gunners. The attacking midfielder scored two goals in a display his coach hailed as ‘perfect’. Germany star Mueller was left on the bench but still managed to come on and score Bayern’s fifth goal in his four minutes on the pitch — after Thiago presented him with a simple tap-in. It had been 999 minutes since he had previously netted for Bayern. Ancelotti is set to rotate his squad with Mueller poised to make the starting line-up at Berlin’s Olympic Stadium. Lahm says home-grown Germany star Mueller is working tirelessly to rekindle his form. “He has a place in every team,” Lahm told Kicker. “It’s unbelievable the way he trains every day, he always Johnson, Mickelson near early lead at Riviera Adam Scott, Justin Rose and Dustin Johnson meet following the conclusion of first round play in the Genesis Open. — USA Today Sports LOS ANGELES: Big-hitting Dustin Johnson made a strong start in his bid to claim the world number one ranking this week by firing a fiveunder 66 that left him two shots off the early first-round lead at the Genesis Open at Riviera. The reigning US Open champion, who can claim the top ranking with a victory should incumbent Jason Day tie for third or worse here, made six birdies and one bogey to stand two shots behind Sam Saunders on the classic Los Angeles layout. “Obviously, it would be great to get there but I’m focused on this week and this golf tournament, each shot that I’m hitting,” said Johnson. “I just want to put myself in position to win on Sunday.” Saunders, grandson of the late Arnold Palmer, made seven birdies in a bogey-free round of 64 as he chases his first PGA Tour win in his 79th start. Among the pack of seven golfers lurking three shots off the pace was Ireland’s Padraig Harrington and American favourite Phil Mickelson, who displayed some of his short game magic to the delight of fans. — Reuters looks forward and pushes, regardless of whether he plays from the start or not. “It’s just a question of time until he finds his form.” Germany star Mueller was left on the bench but still managed to come on and score Bayern’s fifth goal in his four minutes on the pitch - after Thiago presented him with a simple tap-in All of their six closest rivals lost last weekend and Berlin is a happy hunting ground for the Bavarians. They won the Bundesliga title there with a record seven games to spare in March 2014, and have been victorious in their last 11 games against Hertha. Goalkeeper Manuel Neuer could record his 100th clean sheet in the league playing a team that has not scored against Bayern in their last five meetings. Having been as high as third this year, Hertha are down to sixth after winning just two of their last seven league games. Hertha striker Vedad Ibisevic is set to play despite an ankle knock. Second-placed RB Leipzig are at Borussia Moenchengladbach on Sunday looking to bounce back from defeats in their last two games. Gladbach are on a roll and up to tenth after last week’s 3-2 comeback win against Bayer Leverkusen, when they fought back from two goals down. There is a seven point gap behind Leipzig in the table, but the Saxons are wobbling. Their defence was badly caught out in their 3-0 home loss to Hamburg, their first home defeat this season, which came on the back of a 1-0 defeat at Dortmund. Centre-back Willi Orban is suspended while striker Yussuf Poulsen is out for the coming weeks with a leg injury. Fourth-placed Borussia Dortmund will host Wolfsburg on Saturday with their iconic south stand empty. The club will lock fans out as part of a German FA (DFB) punishment after hooligans attacked RB Leipzig fans, including families, two weeks ago. — AFP Jesus absence offers Aguero a chance HUDDERSFIELD, United Kingdom: Pep Guardiola faces a double selection quandary as he prepares for an FA Cup fifth round visit to in-form Championship club Huddersfield Town on Saturday. The Manchester City manager, still active on three fronts as he seeks silverware in his first season in the English game, will be without injured Brazilian striker Gabriel Jesus who broke a metatarsal in this week’s league victory at Bournemouth. The talented teenager, who had scored three goals in as many league games since his January arrival, may not play again this season, with estimates putting his rehabilitation period at two to three months. Jesus has been flown to Barcelona to undergo treatment with Ramon Cugat, the City manager’s physician of choice who has overseen the rehabilitation of a number of the club’s players this season. But Guardiola’s decision as to Jesus’s replacement is complicated by the looming Champions League last 16 first leg tie with French club Monaco, which takes place at the Etihad on Tuesday. Thereafter, and assuming they do not have to schedule an FA Cup replay with Huddersfield, City have a 12- day break until they are in action in a Manchester City manager Pep Guardiola celebrates with his players after the game. — Reuters league visit to struggling Sunderland on March 5, with Guardiola using that opportunity to take his players to Abu Dhabi for a period of warm weather training. ‘SERGIO IMPORTANT’ But, before then, Guardiola must decide whether to recall talismanic veteran Sergio Aguero as Jesus’s replacement — and run the potential risk of an injury ruling him out of the Monaco game — or recall Nigerian understudy Kelechi Iheanacho who, despite a prolific scoring record, appears to have fallen out of favour with Guardiola in recent weeks. Aguero appears likely to win the battle for selection and be granted his first start since Jesus broke into the first team picture with an exhilarating appearance when he came on as a substitute against Tottenham on January 21. After the victory over Bournemouth, Guardiola acknowledged the important role he expects Aguero to fill over the remainder of the season. “I know how important Sergio is,” he said. “I did yesterday, the day Juventus host relegation-haunted Palermo on Friday when Massimiliano Allegri’s men will likely go 10 points clear. Former Juventus and Palermo striker, Fabrizio Miccoli, told Tuttojuve.com: “I’m sorry, but I really don’t see how Palermo can put Juve in difficulty.” Napoli, in third at just two points further off the pace, will look to make amends for a 3-1 defeat at Real Madrid on Wednesday with a win at Chievo. Napoli have won the past four encounters including those at Chievo’s Bentegodi Stadium. Roma coach Luciano Spalletti had blasted Dzeko only last month for being “too soft” in front of goal. But the striker’s recent purple patch has Spalletti purring with praise. “Italian football has improved Dzeko, said Spalletti. “He’s a sensitive lad and when things don’t go to plan it affects him. “His second goal was magnificent, a goal from a mature striker. He’s strong, he’s got character and he will become an even better player.” Inter Milan, in fourth at 15 points adrift, sit in pole position in the race for Europa League qualification. But Atalanta, also on 45 points, Lazio (44), AC Milan (41) and Fiorentina (40) are all in hot pursuit. — AFP Jesus has been flown to Barcelona to undergo treatment with Ramon Cugat, Guardiola’s physician of choice before, the last week, the last month.” Meanwhile, Jesus’s team-mate and countryman Fernandinho has revealed he is hopeful the striker may be able to return before the end of the season. “He was treading badly with his right foot, but we will see what the doctors will say,” said Fernandinho. “We are all hoping it was nothing serious and hopefully he can come back as soon as possible.” Guardiola has fielded strong lineups in the FA Cup until this fifth round stage and the game also appears a perfect opportunity for captain Vincent Kompany, who started the fourth round win at Crystal Palace to continue his comeback from injury. — AFP
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