2011年10月29日星期六

Qatar forges new global role

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12 September 2011 Last updated at 23:02 GMT By Katy Watson Middle East business reporter, BBC News, Doha British Prime Minister David Cameron, French President Nicolas Sarkozy and Qatar's Sheikh Hamad bin Khalifa al Thani on 1 Saturday As President Nicolas Sarkozy greeted the world's leaders at the Libya meeting in Paris last month, one leader who emerged from his limousine was perhaps a little less well known than the others.

Qatar's Emir, Sheikh Hamad bin Khalifa Al Thani, then proceeded to stand alongside President Sarkozy and British Prime Minister David Cameron as the talks began.

The tiny Gulf state's bank rolling of the Libyan rebels has given its leader a front-row seat in international politics.

The Arab uprising is changing the political map of the region and Qatar is playing an important role in it.

Tiny population A picture of Qatar's emir on the exterior of a building in Benghazi A picture of Qatar's emir hangs on a building in the anti-Gaddafi stronghold of Benghazi

There are fewer than two million people living in Qatar. And of those, only about 250,000 are Qataris, the rest being foreign workers. But its vast gas reserves have made its people the richest on the planet.

At a time of unprecedented unrest and while traditional regional leaders like Egypt are dealing with their own problems, that wealth is being used to try to forge Qatar's new path as a regional political heavyweight.

But Qatar is not a democracy. Ruled by a monarchy, this may seem at odds with the political changes happening in the region, but some experts think it actually helps Qatar in making quicker decisions.

"We have the emir at the top, but he's generally well respected and he has a lot of genuine domestic legitimacy here," says David Roberts of the Royal United Services Institute think tank.

"It's quite conservative so there's some kind of societal deference."

Rebel TV

Qatar's support for the rebels has been widespread and was not just limited to funding the fighting on the ground.

It also provided money for projects such as Libya TV, a television station set up to counter the pro-Gaddafi propaganda machine.

Libya TV in Doha Libya TV is funded by the Qatari government as part of its support for Libyan rebels

It got off the ground in just five days - no dry runs or practices. Dozens of Libyan journalists and non-journalists alike were recruited and trained at lightning speed.

Among them is 26-year-old Yusra Tekbali. Born and brought up in the US, she returned to live in Tripoli in December. But when the violence started, her plans had to change.

A month ago she arrived in Doha to work for Libya TV as a blogger. And despite the shift in direction, she remains upbeat.

"I was lured to Libya by greater economic opportunities and also a connection with my roots," she says.

"But now, the opportunity for Libyans and young Libyans from abroad is going to grow at an amazing rate. And Qatar will have a role in that, of course."

Despite Qatar saying that its interests were solely about the welfare of the Libyan people, it is expected that Qatar's support for the rebels will pay off economically in time, too.

It has already helped to market oil for the rebels and that relationship is expected to continue.

And as the world's biggest exporter of liquefied natural gas - there may be potential to work with Libya on exploring its reserves.

'Arab renaissance' Continue reading the main story
This opens the door quite well for Qatar to take this leadership role and to play a role in the Arab renaissance in the 21st Century”

End Quote Ibrahim Sharqieh Brookings Doha Centre Qatar's role in the Libyan conflict has boosted its profile. And that, according to some experts, is exactly what Qatar wanted. It is a Gulf state trying to stand out from the crowd.

"These are brand new countries, dating back to the 1970s," says Mehran Kamrava, the director of the Centre for International and Regional Studies at Georgetown University in Qatar.

"They're frantically trying to play catch-up, frantically trying to make a global presence felt.

"[They are] competing with countries like Egypt with centuries of history, competing with countries like Saudi Arabia, competing with countries like Iran that has tremendous resources and a massive demography and geography."

This stance has been well received at home.

In a region used to foreign intervention, an Arab country taking the lead is seen as a welcome step and one that provides both political security and economic stability too.

"This opens the door quite well for Qatar to take this leadership role and to play a role in the Arab renaissance in the 21st Century," says Ibrahim Sharqieh, deputy director of the Brookings Doha Centre.

"By having that active role in the international arena at this point and taking political leadership, Qatar is protecting its wealth and protecting its existence."


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Samsung forecast beats estimates

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7 October 2011 Last updated at 06:35 GMT Consumer looking at Samsung TVs Falling demand and prices of flat-screen TVs have hurt profits at various electronics makers Samsung Electronics has issued a better-than-expected profit forecast for the third quarter as its handset business helped to offset falling demand for TVs and computer chips.

Samsung said it expected an operating profit of 4.2tn won ($3.5bn; £2.3bn) a 14% dip from a year earlier, but better than market projections of 3.5tn won.

Compared with the previous quarter, the projected profit is up 12%.

Samsung is the world's second-largest maker of mobile phones.

"Its telecommunications business is seen very positive as shipments of smartphones and other high-end handsets expanded," said Park Jong-Min of ING Investment Management.

Advantage Samsung? Analysts said they expected Samsung's handset business to keep growing robustly, not least due to the Apple's decision to upgrade its existing model of iPhone4 with new features and technology, rather than launch a new version.

Apple had been expected to launch an iPhone5 at a media event held earlier this week.

"Given Apple's relatively unchanged new iPhone, Samsung will have the opportunity to eat into Apple's market share with its hardware build-up and growing software power until next year," said Jang In-Beom of Bookook Securities.

Samsung has also been growing its presence in the tablet PC market.

Last month the Korean electronics manufacturer announced that sales of the Samsung GALAXY S II had crossed the 10 million mark, doubling from five million in just eight weeks.

'Major risk'

Despite the optimism about the growth potential of its handset business, analysts said that external factors remain a big threat to the company in the short to medium-term.

There have been concerns that a slowdown in the US coupled with the ongoing debt crisis in Europe may hurt global growth and dent consumer demand.

"The macroeconomic situation will remain a major risk for Samsung in the fourth quarter," said Ahn Seong-Ho of Hanwha Securities.

At the same time, there are fears that volatility in the currency markets may also have a bearing on its earnings.

The Korean won has fallen as much as 10% against the US dollar since the start of July.

A weaker won makes Korean goods cheaper for foreign buyers.

"The weakening won may have inflated third-quarter profits," said Kim Young-Chan of Shinhan Investment Corp.

However, Mr Kim added the exchange rate remained a threat to Samsung as any recovery in the won would have a counter effect.


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VIDEO: China currency vote: US view

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3 October 2011 Last updated at 00:27 GMT Help

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2011年10月28日星期五

Shell Singapore in Force Majeure

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3 October 2011 Last updated at 04:09 GMT Fire at Shell refinery in Singapore The shutdown if the refinery has affected gas, oil and jet fuel production. Shell has declared a force majeure on some of its customers after a fire shut down its refinery in Singapore last week.

The fire affected its diesel fuel unit but forced Shell to shut its entire refinery, hurting its supplies.

The declaration of Force Majeure excuses a company from contractual agreements when an extraordinary event occurs which is beyond its control.

The refinery is Shell's biggest such operation globally.

"We confirm that Force Majeure has been declared on some of our customers," Lee Tzu Yang, chairman of Shell Singapore, said on the company's website.

"We continue to be in discussions with our customers to address their supply of product needs and to minimise any potential impact on them," he added.

The refinery has a capacity of 500,000 barrels a day.


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Could impact investing help India's poor?

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29 September 2011 Last updated at 08:34 GMT By Shilpa Kannan BBC News, Delhi People sorting plastic bags Virender wants to grow his business of recycling plastic Sorting out plastic bags collected from rubbish tips is a serious business for Virender Kumar.

Sitting on a pile of plastic bags, he is busy giving directions to the labourers he employs to help him with the recycling.

Once the bags are sorted, he sells them to recycling units to be melted down into plastic pellets.

He makes about 20,000 rupees ($410; £262) profit every month. But he has bigger ambitions that need funding.

He says that by working overtime, he saved money to start the recycling unit. But now he wants to hire more people and expand the business.

"But everything needs money," he says. "Banks don't lend to people like me."

India's growing middle class has been a target for many companies, but now another segment of society is increasingly becoming a focus for investors - people living below the poverty line.

But can businesses make a profit and also serve a social purpose?

Loan controversy

People like Mr Kumar are now being wooed by financial institutions such as the Shriram Group.

While millions of people across India have little or no access to formal finance, investment funds which want to make a social impact are lending a helping hand.

These funds invest in people and sectors that traditional banks ignore. It is called "profit with a purpose".

But they are using insurance as a means of helping small businesses rather than loans.

Microfinance, or giving small loans to low-income borrowers, has received a lot of bad press in India recently.

The sector was booming until a spate of suicides by borrowers in the southern state of Andhra Pradesh led to the authorities tightening regulations.

At its peak, the microfinance sector saw almost $7bn in loans distributed to 30 million borrowers, and Andhra Pradesh accounted for a third of the total business.

As a result of the new laws, debt repayments fell drastically and the entire sector is now facing a massive consolidation, and many lenders have been forced to shut up shop.

Microinsurance is different from microfinance as this provides a safety net to prevent people from falling back into poverty.

The International Labour Organisation describes microinsurance as a mechanism to protect poor people against risk (accident, illness, death in the family, natural disasters etc) in exchange for insurance premium payments tailored to their needs, income and level of risk.

If a person earns $5 a day, making $150 a month, and a typical insurance product is under $4 a month, that person is able to, with that very limited amount of capital, free their family up substantially.

Having that extra protection means that instead of sending the children to work to save for a rainy day, they can send them to school.

Capital injection

Leapfrog is a $135m US-based impact investment fund that was set up to invest in companies that underwrite or distribute insurance.

The fund is backed by billionaire George Soros and e-bay founder Pierre Omidyar, as well as a consortium of banks, pension funds and reinsurers.

Leapfrog says that it is a big myth that because people have low incomes they are unable to pay for meaningful products.

"We are looking at the next billion consumers," said Andrew Kuper, co-founder of Leapfrog.

"The consumers who are rising out of poverty and into the middle-classes… aspiring, seeking to acquire financial services and other services that allow them to go on their journey in a more effective way."

He thinks businesses that serve that segment are going to have a massive competitive advantage.

Continue reading the main story Andrew Kuper
The ability with a very small percent of your income to totally reshape your microeconomic picture is a huge opportunity”

End Quote Andrew Kuper co-founder, Leapfrog "The ability with a very small percent of your income - less than 4% - to totally reshape your microeconomic picture and the daily choices that you and your family make is a huge opportunity.

"What isn't happening is companies getting to grips with the notion that you can serve that population, and we find that it is a very narrow slice of companies. Fortunately we are engaging with them."

More than 85% of Shriram Group's customers are first-time buyers of any financial product. It is the first provider to more than 98% of its customers. The group hopes that the capital injection from Leapfrog will benefit 10 million people in India.

G S Sundararajan, managing director of Shriram Capital, says his company is targeting people with an average annual income of $2,500.

"We already offer financing and investment services to the lower-income masses across India. Now, we plan to increase it even further. We'll be using Leapfrog's expertise to design new insurance products that are more effective for our existing consumers."

Huge potential

Microinsurance is not a new concept in India. The country was one of the first to introduce microinsurance regulation.

The Insurance Regulatory and Development Authority (IRDA) made it mandatory for all formal insurance companies to extend their activities to rural and social sectors as early as 2002.

But microinsurance companies face a huge challenge in connecting with customers. Many companies have been trying creative ideas - for example, the Shriram group is using its transport finance wing to connect with truck drivers and sell products to them.

India's biggest fertiliser company, IFFCO, provides free insurance cover to farmers along with each bag of fertiliser purchased. It has a joint venture with Tokio Marine and Nichido Fire Group, the largest listed insurance group in Japan.

It also provides a cattle insurance policy that covers the death of the animal due to accident, disease, surgical operations, strike, riots and even acts of terrorism or an earthquake.

Virender Kumar's truck A loan increased Virender's profits by 50%, by helping to pay for a new truck

The potential is huge. A study by the United Nations Development Programme (UNDP) in 2007 reported that up to 90% of the Indian population, or 950 million people, were excluded from the insurance market and represented a powerful "missing market".

But the private sector is risk-averse when it comes to investing in such people.

And just government resources and charitable donations cannot address the enormous social problems the country faces. Impact investments offer an alternative.

Reducing poverty

Recognising this growing segment, the biggest newspaper in the country, The Times of India, in association with J P Morgan, has announced awards for social impact.

Rahul Kansal is the organiser of the awards and he says that there are opportunities beyond just microinsurance for social impact in the country.

He says that large scale private capital can be channelled to public works.

"Increasingly we are seeing that in a country like India, there are avenues like healthcare, education, civic areas like waste management which need attention."

"The government cannot cope with the size of the problem. This is where organisations both for profit and non-profit can step in."

He thinks this large-scale neglect and need could be the next big investment opportunity.

A loan helped finance a new truck for Virender Kumar, increasing his profits by more than 50%. But he has also got life insurance and accident cover that came bundled with his truck financing, to protect his family.

It is people like him that are benefiting most by impact investments. Reducing poverty requires not just the generation of income among the poor, but also the protection of these incomes.

They are people who are making the transition from the informal to the formal economy - and bringing financial products to them gives them a chance to be included in the country's rapidly growing economy.


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German factory data disappoints

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6 October 2011 Last updated event A worker assembles VW's Golf at its Wolfsburg plant at 11: 29 GMT 16-Volkswagen in its release of detailed investment plan yet, despite economic concerns German factories recorded a 0.9% drop in industrial orders over the month of August, according to government data.

It is the second month in a row that demand has weakened, casting further gloom over the prospects for Europe ' s value economy.

Economists had expected no change after July's 2.6% fall.

The German economy support blamed "special factors". It said the decline was driven by a fall in domestic demand during the summer holidays.

Orders from maintains rose by 0.1% over the month.

Eurozone debt and NGO

Surveys suggest button Pack German business confidence is waning. The closely watched Ifo business climate index hit its lowest level for more than a year in 203.

Analysts say a lack of "clarity" about how the eurozone debt and NGO will be resolved is making consumers and companies cautious about spending.

"These numbers are too volatile to draw any firm conclusions." said Berenberg bank's chief economist, Holger Schmieding.

"But of course the significant fall in orders in August, following the drop in July, could be a first sign that demand is weakening."


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Senate currency bill 'dangerous'

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5 October 2011 Last updated at 05:12 GMT John Boehner with colleagues behind him House Speaker Boehner has said taking action against China's currency peg is beyond the scope of Congress A top US Republican has criticised a Senate bill that could penalise China for alleged currency undervaluation.

The Senate voted on Monday by 79-19 to debate legislation that could make it easier to impose penalties against US trade partners.

House of Representatives Speaker John Boehner said it was "pretty dangerous" for Congress to tell other countries how to run their monetary policy.

Beijing said it "firmly opposed" the measure.

The bill would give the US government the power to add tariffs to goods imported from countries deemed to be undervaluing their currencies to boost exports.

The proposed law does not mention China by name, but many US politicians accused China of subsidising exports by holding down the value of the yuan, costing US jobs.

'Unfair trade practices'

Analysts expressed concern that the bill could damage relations with China, which is the biggest holder of US debt, at a time when the American economy is still fragile.

Continue reading the main story Use the dropdown for easy-to-understand explanations of key financial terms:AAA-rating GO The best credit rating that can be given to a borrower's debts, indicating that the risk of borrowing defaulting is miniscule.And Mr Boehner said: "This is well beyond what Congress ought to be doing, and while I've got concerns about how the Chinese have dealt with their currency, I'm not sure this is the way to fix it."

But he came under attack from Democrats over his opposition to the Senate bill, which has bipartisan support in Congress.

"For some inexplicable reason, the Republican leadership in the House is siding with the Chinese government. This is not the time to go soft on Beijing," said Democratic Senator Charles Schumer.

Democratic Senate Majority Leader Harry Reid meanwhile said: "We can't ignore blatant, unfair trade practices that put American workers at a disadvantage."

At the same time, Federal Reserve Chairman Ben Bernanke said that China's yuan policy hindered a more balanced growth path.

Unhappy China

Beijing has expressed "regret" over the measure. Chinese foreign ministry spokesman Ma Zhaoxu said it "seriously interferes with Sino-US trade ties".

"The yuan exchange rate is not the main reason for the Sino-US trade imbalance," said the Chinese central bank, the People's Bank of China.

Analysts have argued that the Chinese currency could be undervalued by as much as 20-40% in relation to the US dollar.

The effect of such a policy would make Chinese goods cheaper in the US, and US goods more expensive in China.

White House spokesman Jay Carney said the Obama administration was still reviewing the currency bill.

The Senate could vote on the bill later in the week.


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