Gulf Daily News Friday, 24th August 2012 17
In association with www.tradearabia.com
rain on growth path
5pc growth,” said Amin Al Arrayed.
“Merrill Lynch is confirming the con-
deflationary phase as Merrill
Lynch put the consumer price
here,” said Mr Al Arrayed.
“Demand is also fuelled
“The GDP alone does not say the
Push for new
by Air Berlin
FRANKFURT: Air Berlin denied a
report that its major shareholder
my is sensus that we’re now entering the index for the first half at 2pc by regional visitors and even “We have a diversified government, Etihad Airways is pushing for the
omes- growth period.” and predicted it to remain at hotels reported full occu- downstream and aluminium sectors. German airline to find a new per-
trong The positive outlook from the invest- the same level for the same pancy. “Our diversification goals go back to manent chief executive quickly.
to an ment bank will improve Bahrain’s period next year. “The factors, which hurt the Economic Vision 2030 and we’re German monthly Manager
chances of an upgrade from credit rat- “We saw prices com- economic growth in 2011, looking at improving our services and magazine said in an excerpt of
ings agencies, he added. ing down, especially in real have diminished.” hospitality sectors.” an article to be published today
merica “It will give comfort to ratings agen- estate last year,” said Mr Al Bahrain, despite lagging In comparison, Merrill Lynch fore- that James Hogan, chief execu-
show cies that are looking for economies that Arrayed. behind in growth indicator cast cautious growth figures for coun- tive of Abu Dhabi-based Etihad,
in the will create jobs,” said Mr Al Arrayed, “During inflation, con- rankings, has the most diver- tries in the GCC. wanted a manager at the helm of
grow general manager at real estate firm First sumption will be on the rise. n Mr Al Arrayed sified economy in the region, Qatar reported the highest growth Germany’s second-biggest airline
period Bahrain. “We’re starting to see pric- added Mr Al Arrayed. for the first half in the region at 6.1pc, after Lufthansa, who had more
“The positive GDP growth forecast es coming up. “There is rapid growth in the hydro- which is predicted to decline to 5pc for aviation experience than current
period will boost ratings for Bahrain at a sov- “It is indicative of people starting to carbons sector across the GCC in coun- the same period next year. chief Hartmut Mehdorn.
g eco- ereign level.” purchase items and consumer goods.” tries such as Qatar and Kuwait,” he Inflation remained high in Saudi “The report is nonsense and
eceive The country’s GDP fell to 2.2pc The festive season demonstrated a added. Arabia, whose GDP growth was pre- completely unfounded,” an Air
ccord- last year, which was nearly half of its rise in demand for consumer items and “Bahrain’s GDP, however, has been dicted to slow in the first half of 2013 Berlin spokesman said.
growth for the preceding year. showed a revival in business, he added. the most diversified across all of the from 5pc for the same period this year. Etihad, which owns almost 30
ose to Bahrain has also come out of its “Eid was successful for businesses GCC. firstname.lastname@example.org per cent of Air Berlin, said it saw
ireland raises $1.3 billion
the report as “extremely scurril-
ous and irresponsible”.
“Etihad Airways and Air Berlin
have a very strong relationship
which is starting to show positive
progress. Both are committed to
DUBLIN: Ireland raised one billion euros of 2013. “Combined with the bond switch and its long-term success,” an Etihad
($1.3bn) yesterday through its first issue of The actions mean Dublin has progres- outright sale transaction of July 26 and the spokesman said.
sovereign bonds that stagger capital repay- sively hacked away at a January 2014 ‘fund- bond switch of January 25, it has reduced Mehdorn, former head of
ments, bringing to 10bn euros the amount it ing cliff’ – its only bond redemption due the original ‘funding cliff’ of 11.9bn euros German rail operator Deutsche
has sliced off post EU-IMF bailout require- then – that its debt agency says now stands by 80 per cent.” Bahn, was appointed as interim
ments. at a modest 2.4bn euros. The issue featured five amortising bonds CEO of Air Berlin a year ago,
It has this year launched two bond swaps, “The success of today’s transaction dem- with maturities of between 15 and 35 years when Joachim Hunold quit, hav-
sold new long-term debt for the first time onstrates the willingness of domestic inves- and aimed at Irish-based pension funds. ing failed to return the carrier
since 2010 and resumed issuing treasury tors to increase their holdings of Irish govern- They were sold at an average weighted yield to profit. Mehdorn’s contract has
bills as it attempts to position itself to exit ment debt,” National Treasury Management of 5.91pc, with the longer-dated issues draw- been extended until 2013.
the 85bn euro bailout on schedule at the end Agency chief executive John Corrigan said. ing most demand. Air Berlin, which has not posted
a full-year operating profit since
rBS ex-dealer 2007, has cut seats, unprofitable
routes and postponed plane orders
to reduce costs and shrink its way
reveals Libor back to profitability after racking
up debts to expand.
Earlier this month, it reported a
net and Twitter have killed the
stone dead” fixing details rise in its second-quarter net loss
to 66.2 million euros ($82.5m) and
said shareholder equity had plum-
SINGAPORE: A former dealer for meted by two-thirds to 101m euros
the Royal Bank of Scotland (RBS) as at the end of June.
Group has provided fresh details
on how traders at the British
bank tried to influence Libor Egypt receives
rates, court documents filed in
Tan Chi Min, suing RBS for
wrongful dismissal, alleges the CAIRO: Egypt said yesterday it
bank’s minutes of his disciplinary had received an initial $500 million
meeting last September did not loan from Qatar, part of its effort
hoping for details on how the reflect what was discussed and to secure international finance to
ECB plans to intervene, before omitted details of conversations stave off a financial crisis.
deciding on any move. about how traders at the bank Finance Minister Mumtaz El
Earlier this month Prime tried to influence its interbank Saeed said it was the first tranche
Minister Mariano Rajoy inched lending rate submissions. of $2 billion Qatar had promised to
closer to asking for an EU bail- More than a dozen banks are deposit with Egypt’s central bank,
out for his country, but said he under investigation by regulators and that the remainder was expect-
needed to know what conditions in the US, Europe and Asia for ed to arrive next month.
would be attached and what suspected rigging of the London n A local ACB employee hands over bricks of banknotes to a customer withdrawing cash in Hanoi Egypt has been rapidly depleting
form the rescue would take.
Vietnam arrests banker
interbank offered rate (Libor), its foreign reserves since the pop-
ECB president Mario Draghi used to price trillions of dollars ular uprising that toppled Hosni
has said the central bank could worth of financial products. Mubarak led the central bank to
intervene to lower painfully Tan was sacked from his sell dollars to prop up the country’s
high yields but only if the coun- Singapore-based role as head of pound. The economy now faces a
try concerned asked for similar delta trading for the bank’s Global HANOI: Vietnam arrested another top banker largest financial institutions and one of the found- balance of payments crisis and is
help from the bloc’s rescue fund Banking and Markets division yesterday, state media said, widening a police ers of ACB, was detained for “illegal business being further undermined by high
first. in November 2011 for trying to probe into the Communist country’s banking sec- activities” after police raided his Hanoi home. state borrowing costs.
A euro zone official said in improperly influence its rate set- tor which has rattled markets and triggered a run More than $240m was withdrawn from ACB On Wednesday, Egypt formally
July that Spain conceded for the ters. Delta trading involves using on deposits. on Tuesday, the Tuoi Tre newspaper said, while requested a $4.8bn aid from the
first time at a meeting between derivatives to mirror the price The arrest of Ly Xuan Hai for “deliberate the price of gold has surged as savers scramble for International Monetary Fund to
Economy Minister Luis de moves in a basket of securities. wrongdoing causing serious consequences” came a safe haven. News of Hai’s arrest emerged after help shore up its balance of pay-
Guindos and his German coun- He said the information omitted just hours after the Asia Commercial Bank (ACB) ACB branches had closed yesterday. ments and to help plug a budget
terpart Wolfgang Schaeuble that included reference to a conversa- announced he had resigned from the position of The central bank had previously said Kien’s deficit expected to reach 7.9 per
it might need a bailout worth 300 tion in March 2008 about the sub- director-general, Thanh Nien online reported. arrest is not related to the ACB – where he holds a cent of gross domestic product.
billion euros ($377bn) if its bor- mission of Libor rates. He claimed Police have raided the French-educated banker’s less than 5pc stake – but concerned accusations of The Saudi-based Islamic
rowing costs remained unsus- trader Will Hall changed it though house in southern Ho Chi Minh City and his office. wrongdoing at three smaller financial companies Development Bank agreed last
tainably high. he was part of the Japanese yen Hai’s arrest deepened the problems facing ACB, where he is chairman. As well as his stake in ACB month to provide Egypt with $1bn
A full sovereign bailout, as swap desk in London. which has seen its share price dive nearly 20 per – which counts global banking giant Standard to finance energy and food imports
given to Greece, Ireland and Tan raised the issue at the meet- cent and had jittery depositors withdraw more than Chartered as one of its “strategic partners” – Kien and in May Saudi Arabia provided
Portugal, would be much more ing, saying the bank’s internal $200 million since its flamboyant founder was is said to hold shares in Sacombank, Eximbank, Egypt’s central bank with a $1bn,
expensive and stretch the curren- procedure in London seemed to be arrested on Monday. Multi-millionaire Nguyen VietBank and others. He was reportedly involved eight-year deposit and a $750m
cy bloc’s resources to the limit. that “anyone can change Libor”. Duc Kien, 48, a shareholder in some of Vietnam’s in drafting the country’s new bank reforms. credit line for oil imports.