UAE widENS cRAckdOwN; MORE ISlAMiStS ... - Kuwait Times

26 BUSINESS
Wary consumers, trade
curb US growth in Q2
Second-quarter GDP rises 1.5%
WASHINGTON: US economic growth slowed as
expected in the second quarter as consumers
spent at their slowest pace in a year, potentially
pushing the Federal Reserve closer to pumping
more money into the economy. Gross domestic
product expanded at a 1.5 percent annual rate
between April and June, the weakest pace of
growth since the third quarter of 2011, the
Commerce Department said on Friday. First-quarter
growth was revised up to a 2.0 percent pace
from the previously reported 1.9 percent. Output
for the fourth quarter was raised to a 4.1 percent
rate from 3.0 percent.
“The economy is struggling to maintain altitude,”
said Robert Dye, chief economist at
Comerica in Dallas. Dye made the comments
before the release of the report. The ailing economy
could cost President Barack Obama a second
term in office when Americans vote in November.
The expansion following the 2007-09 recession is
the slowest since the 1980-81 period and the
recession itself was the deepest in the post-war
period, annual revisions to the data showed.
The weak second-quarter reading, which was
in line with economists’ expectations, could raise
expectations of a third round of bond purchases,
also known as quantitative easing, by the Fed. No
major policy announcement is expected at the
Fed’s two-day meeting next week, but many economists
now say the central bank could move
when policymakers gather on Sept. 12-13.
The economy has been hit by worries of deep
government spending cuts and higher taxes
scheduled to kick in at the start of 2013, as well as
troubles from the debt crisis in Europe. The
biggest factor weighing on the recovery is fear
that politicians in Washington would be unable to
avoid the so-called fiscal cliff at the turn of the
year, economists said. Recent economic data ranging
from employment to manufacturing suggest
limited scope for growth to bounce back in the
third quarter.
Consumers hunker down
Much of the slowdown in growth in the second
quarter was caused by a softening in consumer
spending as Americans eased off on automobile
purchases due to tepid job and income growth.
Consumer spending, which makes up about 70
percent of U.S. economic activity, increased at a
1.5 percent rate, a step down from the 2.4 percent
pace logged in the previous three months.
Consumer spending was the weakest in a year.
Much of that reflected a drop in spending on
long-lasting goods such as automobiles, which
had buoyed consumption in the prior period. But
there was some silver lining, with spending on
services rising at a 1.9 percent rate, stepping up
from 1.3 percent. Labor market weakness, marked
by three straight months of job growth at less
than 100,000 jobs per month, remains a major
constraint to spending.
The economy needs to grow at a rate of
between 2 percent and 2.5 percent to keep the
unemployment rate stable. Business inventories
rose $66.3 billion in the last quarter, contributing
nearly a third of a percentage point to GDP
growth. However, with domestic demand slowing,
businesses could find themselves with
unwanted stock, which would hurt growth in the
third quarter. Excluding inventories, GDP rose at a
1.2 percent rate, the weakest pace since the first
quarter of 2011. In the first quarter, the comparable
figure was 2.4 percent.
Export growth pushed higher, despite slowing
global demand, especially in Europe and China.
But that was offset by a strong rise in imports.
Trade subtracted almost a third of a percentage
point from GDP growth. Government spending
contracted for an eighth straight quarter, but the
pace of decline slowed. Defense spending fell
marginally after two quarters of hefty declines.
There was no relief from state and local government
spending, which has been a drag through
much of the recovery. State and local government
spending fell at 2.1 percent rate after dropping 2.2
percent in the first quarter. Housing - the Achilles
heel of the US economy for six years - increased at
a 9.7 percent rate, slowing from the prior period’s
weather-related 20.5 percent surge.
Business spending on equipment and software
rose at a 7.2 percent rate. With demand weak,
inflation pressures subsided during the quarter. A
price index for personal spending rose at a 0.7 percent
rate, the lowest rate since the second quarter
of 2010, after rising 2.5 percent in the first quarter.
A core measure that strips out food and energy
costs advanced at a 1.8 percent rate, moderating
from 2.2 percent in the prior quarter. —Reuters
Al-Tijari Announces Najma draw winners
KUWAIT: Commercial Bank of
Kuwait held the Al-Najma Account
draw yesterday. The draw was
held under the supervision of the
Ministry of Commerce & Industry
represented by Saquer Al-Manaie.
The winners of the Al-Najma Daily
Draw who get KD 7,000 are:
Jumana Rezq Jerjes Abdulmaseeh
Jerjes; Mohammed Fahad
Mohammed Al-Atiqi; Diab Ahmad
STUTTGART: With the new CLS
Shooting Brake, Mercedes-Benz is once
again setting an example when it
comes to creativity of design, and as
such highlighting its leading role in this
area: in terms of its proportions, the
new CLS is quite clearly a coupe, but
with five doors and a roof which continues
through to the rear, it promises
some remarkable new possibilities. The
idea of the four-door coupe - successfully
introduced in 2004 with the first
CLS and long imitated in the meantime
- has now been taken to new heights
and to innovative effect. The result is
automotive independence at its most
beautiful.
According to CEO Dr. Dieter
Zetsche: “Any memorable machine is
equal parts art and science. A car has to
first deliver in function - the ticket of
entry - and then in fascination: the ticket
to real excitement. The CLS Shooting
Brake excels on both accounts - unlike
any other car in the market”. The proportions
of the CLS Shooting Brake are
surprising but clearly those of a coupÈ,
and create a basic stance which makes
it look ready for the off: the long bonnet,
narrow-look windows with frameless
side windows, and dynamic roof
sloping back towards the rear. It is only
when taking a second look that it
becomes clear that the Shooting Break
actually has five doors and offers
“more” in terms of function.
In essence it represents an unprecedented
version of a sports car with five
seats and a large tailgate. It is a special
proposition for people looking to differentiate
themselves from the mainstream,
and who do not wish to compromise
on either sportiness or
stowage space when it comes to travelling
in style. The Shooting Brake is a
further highlight in the innovative luxury
vehicle series from Mercedes-Benz
and, like the CLS CoupÈ, has the potential
to become the role model for a
new market segment. “The CLS
Shooting Brake is based on the great
tradition of stylish sportiness which has
always characterised Mercedes, and
takes these unique icons an exciting
step further”, explains Gorden
Wagener, Head of Design at Mercedes-
Benz. “It stands for the enhanced
design idiom of Mercedes-Benz which
is oriented towards aesthetic, avant-
Jabr; Mohammed Ashraf
Mohammed Aazzam; and Fidaa
Jamel Al-Tabaa.
The Commercial Bank of
Kuwait announces the biggest
daily draw in Kuwait with the
launch of the new Najma account.
Customers of the bank can now
enjoy a KD 7,000 daily prize which
is the highest in the country and
another 4 mega prizes during the
garde principles”. This is seen in the
impressive series of market-defining
new vehicle concepts, such as the SLK
for example, which in 1996 established
a genre as the first Roadster with a
retractable steel roof, the M-Class as
the first premium SUV in 1998, or the
first four-door CLS CoupÈ in 2004.
Exclusive innovation
in the interior
The second generation of the CLS
set high standards in terms of the
design and quality of the interior:
straightforward elegance combined
with innovative details and handcrafted
perfection. The Shooting Brake also
applies this same aspiration in the luggage
compartment. It is lined with
high-quality carpet, and the handstitched
material is also incorporated
into the sideliners in conjunction with
leather appointments. Optional
designer loading rails made of aluminium
give an even more exclusive look.
An extravagant and unique feature
for the automotive industry is the
designo wooden luggage compartment
floor, which serves to underscore
the hand-finished nature of the interior.
Cherry tree wood is a classic among
fine wood species and contrasts perfectly
with the inlaid smoked oak and
aluminium rails. This affords the luggage
compartment a touch of elegance
normally found on yachts, combined
with the exciting worlds of technology
and precision craftsmanship.
The wood is characterised by its flexibility
and elasticity, as well as its density
and fine texture. For the luggage
compartment floor made of American
cherry tree wood, selected veneer
sheets are glued and pressed together
by hand in five cross-bonded layers to
achieve high dimensional stability. The
blanks are milled into their precise
shape using a CNC machine, and the
surfaces sanded to a smooth finish and
waterproofed to maintain the natural
beauty of the wood. Inlaid work using
darker smoked oak, precisely cut into
three millimetre strips using laser technology,
helps to enhance the design of
the wooden floor. The lavishly produced
aluminium rails have a brushed
finish and rubber inserts, and not only
help to protect the wooden floor but
also feature anti-slip properties.
year worth KD 100,000 each on
different occasions: The National
Day, Eid Al-Fitr, Eid Al-Adha and
on June 19 which is the date of
the bank’s establishment.
With a minimum balance of KD
500, customers will be eligible for
the daily draw provided that the
money is in the account one week
prior to the daily draw or two
months prior to the mega draw. In
The CLS coupÈ already set new
standards in interiors with its wide variety
of individualisation options. The
Shooting Brake also offers five interior
colours, five trim designs and also
three qualities of leather to choose
from. Customers have a choice of three
exclusive wood types: high-gloss
brown burr walnut, high-gloss black
ash and satin-finish light-brown poplar.
The interior is given an even more progressive
look with the addition of
piano lacquer or AMG carbon
fibre/black piano lacquer trim elements.
A completely new addition
comes in the form of porcelain interior
appointments which afford both CLS
models a sense of luxury normally
found in the S-Class. The CLS Shooting
Brake also lives up to its role as a
design icon thanks to the innovative
nature of the materials used. These
comprise a mixture of satin and highgloss
finishes used on the metal surfaces.
A new dimension in
vehicle concepts
No-one likes to have to compromise:
even when the focus is not on
the practical elements of the design of
the Shooting Brake (length x width x
height: 4956 x 1881 x 1413 mm), the
new CLS model still has some trump
cards up its sleeve. With a load volume
of between 590 and 1550 litres, the
luggage compartment offers a lot of
room despite the flat, sporty lines of
addition, for each KD 25 a customer
can get one chance for winning
instead of KD 50. Commercial
Bank of Kuwait takes this opportunity
to congratulate all lucky winners
and also extends appreciation
to the Ministry of Commerce
and Industry for their effective
supervision of the draws which
were conducted in an orderly and
organized manner.
the roof, and is easy to use thanks to
the automatically opening tailgate fitted
as standard. A load compartment
cover also protects luggage from prying
eyes.
The standard air suspension at the
rear helps to ensure optimum road
holding at all times. For additional flexibility,
the rear seat backrests can be
folded down from the luggage compartment
as standard. The rear seats
themselves provide room for three
people, with individual seats on the
outsides and a third seat in the middle.
The three saddle-type head restraints
on the rear seats barely affect the view
towards the rear, and can be lowered
at the touch of a button by the driver.
An optional trailer coupling is also
available.
Dr. Joachim Schmidt, Board
Member of Mercedes-Benz Cars
responsible for Sales & Marketing,
sums it all up: “The new CLS Shooting
Brake represents a new dimension in
vehicle concepts and offers discerning
customers independence at its most
beautiful.”
Lightweight construction
and aerodynamics
Intelligent lightweight construction
plays a decisive role in bridging the
classic conflict between the objectives
of low weight and high strength in the
CLS Shooting Brake. The model features
frameless, all-aluminium doors
made from deep-drawn aluminium
SEVILLE: Andalusia’s sunny beaches, shady
plazas and flamenco dancing attract millions of
northern European visitors each year but the
southern region has become symbolic of
Spain’s decline and its small businesses are paying
the price. Nearly one in 10 of Andalusia’s
companies has closed in the last three years and
more than 80 percent of those remaining are
tiny, with less than three employees. This makes
them particularly vulnerable to the economic
slump caused by a 2008 property crash, a banking
crisis and growing concern over the future
of the euro zone.
After growing faster than the national average
for more than a decade, Andalusia is slumping
faster than the rest of Spain and is stuck
with massive unemployment and growing
poverty. Local authorities say they don’t plan to
follow Valencia and ask for a central government
bailout. While Andalusia has one of the
country’s highest debt levels, it is also the most
populous region with the lowest debt-per-person
ratio. However, with its economy expected
to shrink this year and next, pressure to slash its
deficit and no access to credit markets, doubts
linger about how it can refinance some 1.6 billion
euros of debt by the end of the year without
help. Since the real estate boom years ended,
Andalusia has survived almost entirely on
tourism and agriculture.
Parked in front of a centuries-old bullring on
the banks of the Guadalquivir river, Juan Zabala
Franco, 44, who has been offering visitors horse
and cart rides around the city for 25 years, can’t
remember such a quiet summer. “Tourism right
now is a disaster. There was an explosion of
money as the banks lent to everyone, and now
we’re paying for that,” he said, offering a halfprice
ride to a Spanish family. “Families come
here on package holidays, with their little paper
bracelets and all included. They don’t have a
budget for anything else.” The story is the same
in the bars and restaurants surrounding the
Cathedral, the world’s oldest gothic church,
with empty tables at the Bar Giralda. “Many
don’t spend and would rather buy lunch from a
supermarket than eat in a restaurant,” says Yusef
Najib, a waiter at the Giralda since 2006. “Before,
this bar would take in 5-6,000 euros a day. We’re
lucky if we make half that now.”
Accelerated development
For a quarter of a century, Andalusia gorged
on European Union funds that helped it blossom
from a backwater with a high illiteracy rate,
paying for high-speed rail lines, thousands of
panels with extruded sections, and in
comparison with conventional steel
doors, are some 24 kilograms lighter.
The tailgate, bonnet, front wings, various
support profiles and substantial
parts of the suspension and engines
are all made of aluminium too.
The aerodynamics also make a significant
contribution to the efficiency
of the Mercedes-Benz CLS Shooting
Brake. With a frontal area of 2.30 msq
and a Cd value of 0.29, the drag area is
0.67 msq.
Drive system: powerful
and efficient
The CLS Shooting Brake is available
with two different Petrol engine variants
-Features common to all engines
include the 7G-TRONIC PLUS automatic
transmission as well as the ECO
start/stop function. In addition, CLS
500 4MATIC BlueEFFICIENCY, available
with all-wheel drive CLS 350
BlueEFFICIENCY produces 225 kW
(306 hp). The top-of-the-range model
is the CLS 500 BlueEFFICIENCY with a
V8 biturbo engine producing 300 kW
(408 hp). Efficiency is also increased
by the standard electro-mechanical
power steering EPS (Electric Power
Steering). EPS is a radical move in the
relationship between the driver, car
and road surface. This is because for
the first time, it gives engineers the
freedom to choose and programme
many of the parameters that influence
steering feedback. So they defined a
Mercedes-Benz feeling behind the
wheel. In addition to fuel economy,
the result is a considerable improvement
in handling and agility. The
electromechanical power steering
also enables another innovation to be
implemented - Active Park Assist. The
CLS Shooting Brake is not only able to
detect parking spaces, but can also
park automatically.
Another world exclusive:
dynamic full LED headlamps
The CLS was the first passenger
car in the world to offer optional
dynamic full LED High Performance
headlamps, which combine the exciting
colour elements of LED technology
- similar to those of daytime driving
lights - with the performance,
functionality and energy efficiency of
today’s bi-xenon generation. Some
MONDAY, JULY 30, 2012
Andalusia’s small business
crushed by Spanish slump
km (miles) of highways, modern schools and
universities. Much of this bonanza was negotiated
by the region’s favourite son, former Socialist
Prime Minister Felipe Gonzalez, who signed
Spain’s accession treaty in 1985 and brought an
extravagant world fair to his home town, Seville,
in 1992.
EU funds accounted for one-third of all
investments in the region in 1996 but only 12.3
percent by 2008, according to the OECD. They
run out next year, and their loss will only add to
growing pressure on the region. Andalusia was
sucked into the property fever and grew fast as
cheap money poured into concrete especially
along its hundreds of km of once-pristine coastline.
The construction industry has collapsed
and gross domestic product per capita is now
17,587 euros, one of the lowest in the country,
compared to 31,288 euros in the industrialised
northern Basque Country region and an EU
average of 25,134 euros. One in every three
workers in Andalusia is now unemployed, compared
to a national average of nearly one in
four. Some 7.5 percent of all the jobless in the
euro area live here.
Almost 30 percent of the region’s residents
live below the poverty line, compared to the
national average of 19.5 percent. “Every day we
hear worse news about data and risk premiums
and that has pushed people from fear to panic,”
said Seville Business Confederation president
Miguel Rus Palacios.
Palacios, whose office is in the orange-treelined
centre of Seville, says he has been criticised
for his outright views, but needs to speak
his mind. “Businesses must make some very difficult
decisions to define their own futures. Our
project, as a country, is just not viable and we
can’t carry on like this.” Andalusia is only one of
three regions the Socialists managed to hold
this year after losing national power when they
were trounced by Prime Minister Mariano
Rajoy’s conservatives in a general election last
November. They blame his austerity measures
aimed at reducing the deficit for worsening the
crisis. “No one will ever grow through Rajoy’s
policies. How can we grow with these cuts? We
agree with cuts, but not with these cuts,” says
Pepe Caballos, economy secretary for the
Socialists in Andalusia’s parliament. “To rise from
this crisis, we need to change the model of productivity,
invest in it, invest in research.” The conservatives
accuse the Socialists in Andalusia of
having squandered boom-year revenues on an
inflated bureaucracy designed to keep themselves
in power indefinitely. —Reuters
Mercedes-Benz CLS Shooting Brake sets a striking example
95 percent of all customers have opted
for these lights in the CLS CoupÈ.
Of course, as the world’s second car
to feature this optional extra, the CLS
Shooting Brake also offers the new
light system. For the first time ever, it
provides the Intelligent Light System
already proven in Mercedes models
fitted with bi-xenon headlamps in
combination with LED technology.
The headlamps, with their 71 LED
lamps in total, look exciting; and they
serve to underline the unmistakable
appearance of the CLS. The light specialists
from Mercedes-Benz have for
the first time been able to use LED
technology in the innovative
Adaptive Highbeam Assist, resulting
in an entirely new quality of illumination
when driving at night. In contrast
to the first vehicles equipped
with LED headlamps, no compromises
are now necessary with respect to
the functionality and performance of
the lighting technology. There are
further arguments for LED-based
lighting technology: the average
operating life of an LED is around
10,000 hours, around five times
longer than that of a xenon light;
moreover, LED headlamps most
closely approximate to the colour of
daylight. This means that LED light is
in keeping with the normal human
perception patterns and that the
driver experiences significantly more
brightness on the road at night.
Studies have shown that the closer
the colour of artificial light comes to
daylight, the less the strain on the
eyes. With a colour temperature of
5,500 kelvin, LED light is closer to
daylight (6,500 K) than xenon light
(4,200 K).
More than a dozen driving assistance
systems help to prevent traffic
accidents and reduce the severity of
an accident. Active Blind Spot Assist
and Active Lane Keeping Assist are
available as part of the Driving
Assistance package Plus, in combination
with Distronic Plus, Bas Plus and
the Pre-Safe Brake. Both assistance
systems are not only able to detect an
unintentional lane change or vehicles
in the blind spot, but can also correct
the direction of travel by gentle brake
intervention if the driver ignores the
visual or audible danger warnings.