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									                                                                                                                                                                                                                            ARAB TIMES, MONDAY, AUGUST 29, 2011
    BUSINESS                                                                                                                                                                                                                                                                  39


                           Jordan, Egypt ink gas deal                                                                                                                                      Hyundai boss to give $462m to charity

    Jordan’s energy czar says his              ment stipulates higher costs, but                    South Korea’s top automaker                   The money will be donated to a         accounting to raise a slush fund to          dential pardon two months later.
    country will sign an agreement             declined to say how much.                            Hyundai Motor said Sunday its              charity group founded by Hyundai,         bribe government officials and                 Since then he has donated
    with Egypt next month to resume              Jordan depends on Egyptian                         chairman would give $462 million           it said, adding the sum was the           politicians in return for business           shares worth 150 billion won for
    natural gas supplies.                                                                           to charity, partly fulfilling a pledge     largest personal donation ever            favours.                                     charity, prompting calls from civic
      Energy      Minister     Khaled          gas to generate 80 percent of its                    made in 2006 while being investi-          made in South Korea.                        He said at the time the donation           groups and lawmakers to fully fulfill
    Toukan says several attacks this           electricity. The resource-poor                       gated for corruption.                         The move came amid calls for           was aimed to “take social and ethi-          his pledge to donate one trillion
    year on Egypt’s pipeline deliver-          country has resorted to heavy                          Chung Mong-Koo will donate               Chung, 73, to honour his promise          cal responsibility” for the scandal.         won.
    ing the fuel may prompt Jordan to          fuel and diesel to keep national                     shares worth 500 billion won ($462         to donate one trillion won ($924            The tycoon was given a jail term,            Hyundai Motor, with its affiliate
    look for alternatives, but Jordan                                                               million) in Hyundai Glovis — a             million).                                 which was reduced on appeal in               Kia Motors, is the world’s fifth
    will now try to use Egyptian gas           power plants running. The shift                      Hyundai Motor subsidiary — to                 Chung was later convicted of           2008 to a suspended three-year               largest automaker and controls
    to meet its energy needs.                  cost Jordan $4.2 million a day.                      help children from poor families,          embezzling 90 billion won in com-         sentence and 300 hours of public             nearly 80 percent of the South
      Toukan said Sunday the agree-            (AP)                                                 the company said in a statement.           pany funds through fraudulent             service before receiving a presi-            Korean auto market. (AFP)



                                                                                       Producer cites no impact on existing customer portfolio


Qatargas plans several LNG outages in autumn
DUBAI/DOHA, Aug 28, (RTRS):                    tively for around two weeks each                 mtpa train 3.                                dinated with all parties of our opera-        Qatargas did not comment on                 could cut supply to north west
Qatargas will stop three of the                from mid September to early                         “Qatargas can confirm that the            tions, shipping and customers as part       whether the inlet receiving facility          European consumers already worried
world’s biggest liquefied natural gas          November — when heating demand                   planned maintenance of its Trains 5,         of our annual planning exercises.           work would require the complete               about Qatari LNG diversions to high-
(LNG) producing plants at different            from big buyers in Europe and north-             6 and 7, as well as Qatargas 3 and 4         There will be no impact on our exist-       shutdown of trains 3 or 4.                    er paying Japan, where gas demand
times during a rolling maintenance             east Asia climbs as temperatures fall.           inlet receiving facilities will take         ing customer portfolio.”                      Some inlet receiving systems can            has boomed since a March earth-
programme planned for this autumn,                Qatargas did not give exact dates             place this autumn,” a spokesperson              On Friday, traders familiar with the     be bypassed so that production can            quake shut nuclear power plants.
the world’s largest LNG producer               or durations on Sunday for the clo-              from Qatargas in a statement on              plans said work at trains 5-7 was           be maintained, while others require a            Qatargas operates seven LNG
said on Sunday.                                sures of its three newest production             Sunday.                                      expected to last for about two weeks        complete shutdown, an industry                trains with a capacity of 42 million
   European gas prices leapt on                lines — each able to produce 7.8 mil-               “Qatargas operates a rolling pro-         each, also reducing Qatari conden-          source said.                                  tonnes per annum (mtpa), but has
Friday after traders with knowledge            lion tonnes a year (mtpa) of LNG —               gramme of planned maintenance at             sate production while the huge pro-           British benchmark front-season              signed several deals since March to
of the situation told Reuters Qatargas         but said it also planned to do work on           its facilities. These necessary,             cessing plants attached to Qatar’s          gas prices soared six percent on              sell more LNG to new markets in
trains 5, 6 and 7 would shut consecu-          parts of the 7.8 mtpa train 4 and 3.2            planned and safe shutdowns are coor-         vast North Field are down.                  Friday on fears the maintenance               addition to Japan.



                       Policy paralysis feared
                                                                                                Italy readies austerity changes;
    Economic leaders
    pressure politicians                                                                        economy minister ‘under fire’
    JACKSON HOLE, Wyo, Aug 28,
    (Agencies): The heads of the US
                                               be a top priority, and he called on the
                                               US government to put a floor under
                                                                                                                                    VAT hike, local govt cuts, solidarity tax mulled
    Federal Reserve, IMF and OECD              the sagging housing market, remarks
    stepped up pressure on political lead-     that Lagarde echoed forcefully on                ROME, Aug 28, (Agencies): Italy’s ruling coalition is preparing                          measures he likes without consulting,” Cabinet Undersecretary Daniela Santanche
    ers on both sides of the Atlantic to       Saturday.                                        significant changes to its austerity plan presented in mid-August                        was quoted saying in la Repubblica on Sunday, adding Tremonti’s powers should be
    shake off their inertia and tackle            Bernanke’s speech was “the shot                                                                                                        cut.
    urgent economic problems.                  across the bow of the government
                                                                                                and Economy Minister Giulio Tremonti, who put together the                                  “We don’t want supermen or superministers,” she said.
       If politicians ignore their pleas —     saying, ‘don’t keep layering expecta-            original plan, appears increasingly isolated.                                               Santanche listed several key amendments that will be made to the austerity plan,
    including a blunt call from                tions on the Federal Reserve, guys,                The 45.5 billion euro ($65.3 million) austerity package, drawn up at the insis-        which aims to balance the budget by 2013.
    International Monetary Fund chief          you have a job to do,’” Columbia                 tence of the European Central Bank, is currently being examined by the Senate,              Among these, she said a plan to merge town councils with less that 1,000 inhabi-
    Christine Lagarde to “act now” — the       Business School Dean Glenn                       where any amendments must be presented by 1800 GMT Monday.                               tants would be scrapped, as would a proposal to abolish provincial governments with
    slowdown in world growth and debt          Hubbard said in an interview with                   Ahead of this deadline, tensions have been running high in Silvio Berlusconi’s cen-   less than 300,000 inhabitants.
    turmoil in Europe could morph into a       Reuters Insider.                                 tre-right coalition, with Tremonti widely blamed for what are seen as failings of the       To raise more revenue, the main value added tax rate would be increased to 21 per-
    deeper crisis, top monetary officials                   Monitoring                          original package and also for resisting the changes that are now being proposed.         cent from 20 percent, she said.
    and economists warned at an annual            “The Fed is simply saying, ‘We are               Italian newspapers report Berlusconi himself is exasperated by Tremonti’s inflexi-       These changes have been urged by several government members but are said to be
    retreat here.                              monitoring the situation very careful-           bility and politicians and media close to the prime minister now regularly attack him    opposed by Tremonti. Berlusconi says whatever changes are made in the individual
       “I hope they listen,” said Bank of      ly but would encourage the govern-               in a way that would have been unthinkable a few months ago.                              measures, the overall size of the deficit correction will stay the same.
    Israel Governor Stanley Fischer.           ment, both parties, to get their act                “Tremonti has to get used to the fact he’s not in charge, he can’t just draw up the      Another amendment being considered is to soften the so-called “solidarity tax” on
       Alarm over political deadlock was       together and pass a long-term fiscal
    as obvious a backdrop to the annual        strengthening package and then per-                                                                                                                                                      high earners, by applying it only to those
    meeting of policymakers in the wilds       haps short-term stimulus.”                                                                                                                                                               who make more than 150,000 euros per
    of Wyoming as the thunderstorms that          The calls from the world’s econom-                                                                                                                                                    year, rather than those earning 90,000 as
    rolled over the nearby Grand Teton         ic policy elite may give some political                                                                                                                                                  in the original plan.
    peaks and dumped rain on the               cover to President Barack Obama,                                                                                                                                                            However, these and other possible
    Jackson Lake Lodge.                        who faces a tough re-election fight                                                                                                                                                      changes are subject to frenetic negotia-
       “The governance right now is not        next year with the US unemployment                                                                                                                                                       tion ahead of the Monday evening dead-
    going through a very brilliant             rate stuck above 9 percent.                                                                                                                                                              line, with a key meeting scheduled for
    moment, I have to say, neither in             Obama is preparing for a speech                                                                                                                                                       Monday between Berlusconi and his
    Europe nor in the United States,”          after the Sept. 5 Labor Day holiday in                                                                                                                                                   main coalition partner, the pro-devolu-
    Angel Gurria, who heads the multi-         which he is expected to lay out pro-                                                                                                                                                     tion Northern League.
    nation Organization for Economic           posals to boost hiring. He is reaching                                                                                                                                                      So far the League has resisted pressure
    Co-operation and Development, told         out to other world leaders too.                                                                                                                                                          from other coalition members to raise
    Reuters.                                      On Saturday, Obama spoke with                                                                                                                                                         the retirement age.
       “The signals that are coming out of     German Chancellor Angela Merkel,                                                                                                                                                            The head of Italy’s main business
    the short-term discussions is, ‘We         and the White House said the two
    can’t even agree on about the time of      leaders vowed to act to shore up a
                                                                                                                                                                                                                                        lobby said on Saturday the austerity
    the day, even if there’s a big clock       global recovery that now looks at risk.                                                                                                                                                  plan, which she already saw as inade-
    telling us what the time of the day           A day earlier Obama had called                                                                                                                                                        quate, looked sure to be “clearly wors-
    is.’”                                      Lagarde to talk about fiscal policy.                                                                                                                                                     ened” by the amendments under discus-
                  Impasse                      They agreed that the world economy                                                                                                                                                       sion.
                                               needs further steps to boost growth.                                                                                                                                                        “There is hardly anything structural
       In the United States, the political                                                                                                                                                                                              and nothing for growth,” Confindustria
    impasse has thwarted moves to tame            Obama’s potential presidential
    massive budget deficits which              challengers, including leading                                                                                                                                                           President Emma Marcegaglia said,
    brought the nation to the edge of a        Republican candidate Mitt Romney,                                                                                                                                                        adding it would “certainly have a
    debt default and cost the United States    have repeatedly blamed Obama’s                                                                                                                                                           depressive effect” on the economy.
    its coveted AAA credit rating from         policies for impeding growth.                                                                                                                                                                           Criticism
    Standard & Poor’s.                            The US economy grew less than 1                                                                                                                                                         Criticism of Tremonti has been build-
       In Europe, leaders are fighting over    percent in the first half of the year and                                                                                                                                               ing steadily, fuelling speculation he will
    who should pay for the sovereign debt      has yet to return to its pre-recession
                                               size.                                                                                                                                                                                   soon resign or be pushed out of govern-
    crisis in the euro zone, which has a                                                                                                                                                                                               ment.
    unified regime for monetary policy                     Also:                                                                                                                                                                          He has never been popular among col-
    but whose member nations run their         BERLIN: Tax relief promised for                                                                                                                                                         leagues, who resent his wide powers and
    own budget policies.                       2013 will be moderate, German                                                                                                                                                           autocratic style, but until recently he was
       Lagarde, whose appearance on            Chancellor Angela Merkel said in an                                                                                                                                                     invulnerable because his tight spending
    Saturday was a late addition and           interview on Sunday offering an early                                                                                                                                                   curbs were considered to have shielded
    reflected her sense of urgency, deliv-     glimpse of a policy held dear by her
    ered a hard-hitting pitch against brak-    liberal coalition partners.                      This file photo taken on March 7, 2011 shows Philippine President Benigno Aquino during a speech before members of                     Italy from the euro zone debt crisis.
    ing spending too fast as nations strug-        “In the fall, we will have tax                                           the armed forces at Camp Aguinaldo in suburban Manila. (AFP)                                                  All that changed when Italian govern-
    gle to rein in long-term budget            income forecasts and when we know                                                                                                                                                       ment bonds suddenly came under market
    deficits.                                  them, we will decide before the end of                        Aquino on a mission to secure billions of dollars in deals                                                                attack this summer.
       She was far from alone.                 the year on moderate tax decreases for                                                                                                                                                     An editorial on Sunday in daily Il
       The Fed has slashed US interest         low and medium incomes,” Merkel                                                                                                                                                         Giornale, owned by Berlusconi’s brother
    rates to near zero and bought $2.3 tril-
    lion in long-term securities in an
    effort to kick-start the recovery. With
    monetary policy stretched to its lim-
                                               said to Bild am Sonntag.
                                                   The chancellor said that the ruling
                                               conservative-liberal coalition had
                                               agreed in July on tax reductions that
                                                                                                Philippines, China talk trade                                                                                                          and virtually a mouthpiece for the prime
                                                                                                                                                                                                                                       minister, strongly attacked Tremonti.
                                                                                                                                                                                                                                          “If he’s so good, and so far they’ve left
                                                                                                                                                                                                                                       things up to him, then why have we got
    its, fiscal policy is now key, Fed         would take effect on January 1, 2013.            MANILA, Aug 28, (AFP): Philippine               “We’ll all try our best to make this     mate deposits among the biggest in the        into this situation?” it asked, while
    Chairman Ben Bernanke suggested.           Germany holds general elections in               President Benigno Aquino travels to          trip very rewarding to both of our two      world, according to the US State              another article in the same newspaper
       “Although the issue of fiscal sus-      2013 and little indication had been              China this week on a mission to secure       countries and two peoples,” China’s         Department’s country profile.                 was headlined, “Silvio and Giulio head-
    tainability must urgently be               given so far on the scale or type of tax         billions of dollars in trade deals, with     ambassador to the Philippines, Liu             But mining is not expected to the          ing for the final battle”.
    addressed, fiscal policymakers should      cuts the government would propose.               both sides looking to rebuild goodwill       Jianchao, told reporters in a briefing      sole, or even biggest, focus during              A similar message was delivered on
    not as a consequence disregard the             Cutting taxes is a key policy of the         amid a bruising territorial row.             about Aquino’s visit.                       Aquino’s trip, which will take him to         Saturday by Sandro Bondi, who this year
    fragility of the current economic          junior coalition party, the Free                    Aquino’s five-day visit starting             “The Philippine economy is taking        Beijing, Shanghai and the eastern sea-        quit his posts as culture minister and
    recovery,” he said on Friday.              Democrats, but Finance Minister                  Tuesday is held against the backdrop         off and I have told the Philippine peo-     side city of Xiamen.                          national co-ordinator of the ruling
       “Fortunately the two goals of           Wolfgang Schaeuble of the conser-                of increasingly strident Philippine          ple that China is ready and willing to         Philippine officials have said they        People of Freedom party, but who
    achieving fiscal sustainability —          vative Christian-Democratic party has            accusations of Chinese aggression and        add power to the wings of the               will be seeking Chinese investment in a
    which is the result of responsible poli-   resisted cuts believing that budget dis-                                                                                                                                                remains close to Berlusconi.
                                                                                                bullying in their dispute over compet-       Philippine economy.”                        raft of infrastructure projects, from rail       “Giulio Tremonti has become more of
    cies set in place for the longer term —    cipline should remain the priority.
    and avoiding the creation of fiscal            Meanwhile, according to weekly
                                                                                                ing claims to parts of the South China                      Scoured                      to roads, airports and schools.               a problem than an asset,” Bondi said.
    headwinds for the current recovery         der Spiegel, Schaeuble is about to               Sea.                                            China has scoured the world in              There is also significant Philippine          A dispute over austerity measures
    are not incompatible.”                     revise the 2012 growth forecast to 2.0              Aquino’s aides said he would raise        recent years for all kinds of natural       investment in China and Aquino is             within the Italian government deepened
       Bernanke said battling long-term        percent, up from 1.8 percent previous-           the sensitive issue in his meetings with     resources to fuel its fast-developing       hoping his trip will deepen his coun-         last week with Prime Minister Silvio
    joblessness in the United States must      ly.                                              China’s leaders, including President         economy and provide the raw materials       try’s presence inside the world’s sec-        Berlusconi publicly rebuking a key ally
                                                                                                Hu Jintao, but his main focus would be       for its phenomenal manufacturing sec-       ond-biggest economy.                          over comments that the country’s politi-
                                                                                                on improving economic ties.                  tor.                                           In this light, Aquino will bring about     cal system is dead.
                                                                                                   “The visit hopes to push for more            However, China has not clinched the      200 Filipino businesspeople with him.            Northern League head Umberto Bossi

Germany marks 125 years                                                                         trade, investment... it will also show-
                                                                                                case the Philippines as an attractive and
                                                                                                profitable business destination,”
                                                                                                                                             kinds of multi-billion-dollar resource
                                                                                                                                             contracts with the Philippines that it
                                                                                                                                             has elsewhere — and Liu signalled
                                                                                                                                                                                            And in an effort to attract more
                                                                                                                                                                                         Chinese tourists, Aquino’s delegation
                                                                                                                                                                                         will press China to declare 2013 “Visit
                                                                                                                                                                                                                                       criticised the fact rich northern regions
                                                                                                                                                                                                                                       have to subsidise poor southern areas,
                                                                                                                                                                                                                                       and concluded “the Italian system is con-
                                                                                                Foreign Affairs Assistant Secretary          Chinese firms were becoming increas-        the Philippines Year”.                        demned to death”.

of the automobile’s ‘birth’                                                                     Cristina Ortega told reporters.
                                                                                                   Ortega said the two sides were plan-
                                                                                                ning to sign during Aquino’s visit a
                                                                                                                                             ingly hungry for Philippine natural
                                                                                                                                             riches.
                                                                                                                                                “I think we do have great potential in
                                                                                                                                                                                            Nevertheless, Aquino has also told
                                                                                                                                                                                         the Philippine people he will not allow
                                                                                                                                                                                         economic priorities to override his
                                                                                                                                                                                                                                          Bossi, whose far-right party has previ-
                                                                                                                                                                                                                                       ously flirted with separatism, said Italy
                                                                                                                                                                                                                                       no longer functions and spoke of a
STUTTGART, Germany, Aug 28, (AFP):             tal Stuttgart will not miss the Mercedes         five-year economic plan that would tar-      the area of mining,” Liu said when          country’s claims to parts of the South        greater northern Italy.
Germany is celebrating this year the birth     star that sits above the main train station      get $60 billion in trade in 2016, a six-     asked what types of investments China       China Sea.                                       Berlusconi took the unusual step of
of the automobile, with a patent applied       or the posters that advertise the local auto     fold increase from 2010.                     was looking for in its fellow Asian            China claims most of the South             issuing a public rebuke.
for by Carl Benz 125 years ago for a           museum.                                             She said one immediate contract           country.                                    China Sea, even near the coasts of               “I regret being in disagreement with
motorized tricycle, in hopes of drawing           Built at the base of a hill that dominates    may be sealed involving a Chinese car           “I think that the mining companies,      Southeast Asian countries, and the            my friend Umberto Bossi. I firmly
tourists smitten by cars.                      the city, the museum inaugurated in 2006         manufacturer investing at least $1.5         mining corporations of China and the        Philippines has accused Chinese forces        believe that Italy exists and will always
   The national tourism office has made        boasts a striking glass facade that covers a     billion in the Philippines.                  mine owners of this country can have        of acts such as firing warning shots at       exist,” the prime minister said in a state-
the auto industry a highlight of its annual    double spiral of steel meant to represent           China, with an eye on the                 direct and efficient... negotiations for    Filipino fishermen in disputed waters         ment.
programme for the first time and the           the automobile’s DNA.                            Philippines’ vast and mostly untapped        furthering their cooperation on min-        this year.                                       He said Italians had always reacted
southwestern region of Baden-                     An elevator that emits sports car sounds      natural resources, has also signalled it     ing.”                                          “As far as our sovereignty is con-         with great pride to the “snubs” of history
Wuerttemburg alone has organised 200           takes visitors to halls that contain the first   does not want the maritime tensions to          The Philippines has untapped miner-      cerned, no one can claim our islands.         and said that Italy’s north and south
events from May through September.             autos, invented almost simultaneously by         derail a flourishing economic partner-       al wealth estimated at more than $840       We will not just back down from a larg-       share a “common history and a common
   Anyone travelling to the regional capi-     Carl Benz and Gottlieb Daimler.                  ship.                                        billion, with its copper, gold and chro-    er country,” Aquino said this month.          destiny”.

								
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