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BERLIN — The German government on Tuesday agreed to pump 62 billion euros into modernising its rail network system, as part of a wider plan to incite commuters to opt for greener public transport options.

"We've just signed the most important programme of modernisation ever in Germany," said Transport Minister Andreas Scheuer, adding that "this is the decade for railway". 

Besides the massive sum stumped up by the state, equivalent to $69 billion, German rail operator Deutsche Bahn will also plow an additional 24 billion euros into the renewal programme.

The investments will go towards "replacing obsolete installations", improving access to disabled passengers as well as renovating rail bridges, said Scheuer.

Deutsche Bahn chief Richard Lutz also vowed to improve punctuality of trains — a key turn-off for commuters, even though he also called for patience in view of the disruptions that rail upgrading will undoubtedly bring.

Getting more people to switch to trains instead of the more polluting cars or planes is a central plank of a government climate package aimed at helping Germany lower its emissions by 55 per cent by 2030 compared to 1990 levels.

As part of the package, train fares are going down while air travel prices are set to rise with higher taxes to be imposed.

Export power Germany has for years been under pressure to use its huge budget surpluses to loosen the purse strings and invest in crumbling infrastructure.

Batting away the criticism, Germany has in recent months pointed to the ambitious environmental plan to underline the massive outgoings it has pledged for the coming decade.

After two blistering summers and thousands of youths joining school strikes week after week, climate change has shot to the top of the political agenda. 

In its battle to cut emissions, car-mad Germany has lagged badly behind in the transport sector, where state-coddled auto giants VW, Daimler and BMW have long focused on gas-guzzling SUVs over hybrid or zero-emission cars.

LONDON — World stock markets gave a mixed picture on Monday as investor attention turned to the planned signing of a China-US trade pact, with Wall Street firmer and European markets mostly retrenching.

London was steady, helped by a weaker pound which boosts share prices of multinationals that earn in dollars.

Sterling sagged as Bank of England policymaker Gertjan Vlieghe hinted at a potential vote in favour of a January cut to the central bank's main interest rate.

Stoking rate-cut speculation, official data showed the UK economy shrank 0.3 per cent in November, as Brexit and political uncertainty contributed to slashing manufacturing output.

But despite some adjustments to the downside, underlying sentiment was "positive as traders are looking ahead to the signing of the first phase of the US-China trade deal on Wednesday", CMC Markets analyst David Madden said.

The picture was brighter in Asia with Hong Kong rallying more than 1 per cent and Shanghai up 0.8 per cent.

While some of the optimism that characterised the end of 2019 is making a cautious return to trading floors, dealers were left a little disappointed by a below-par jobs report out of Washington on Friday which pushed the main US indices into the red.

But on Monday, Wall Street mildly rebounded in early trading as analysts agreed that while the data missed expectations, it did suggest that the Federal Reserve will likely maintain interest rates at low levels for some time to come, with some tipping the next move could be another cut.

 Pen to paper 

Focus this week is on Washington, where China and the United States will finally put pen to paper on their much-vaunted "phase one" trade deal, which has lowered tensions between the economic superpowers and boosted hopes for the global economy.

While there are not expected to be any major announcements at the signing, investors will be looking for signs of progress on the next part of negotiations for a wider agreement.

"Provided the deal inks a commitment from China to increase agricultural products and outlines a dependable enforcement mechanism, the market will go merrily along the way," said AxiTrader's Stephen Innes.

"Traders are probably not too concerned about a currency pact as China should hold the line on any weakness in the yuan as we roll forward to negotiating phase two."

LONDON — Britain's economy has stalled, official data showed on Monday, as Brexit and political uncertainty contributed to slashing manufacturing output, heaping pressure on the Bank of England (BoE) to cut interest rates.

Gross domestic product (GDP) contracted 0.3 per cent in November, the Office for National Statistics (ONS) said in a statement. It grew only 0.1 per cent in the three months to the end of November, the ONS added.

Manufacturing, meanwhile, slumped 1.7 per cent in November.

Speaking ahead of the data a Bank of England policymaker, Gertjan Vlieghe, hinted at a potential vote in favour of a January cut to the BoE's main interest rate, weighing on the pound on Monday.

It followed comments Friday by fellow policymaker Silvana Tenreyro, who said she could support a rate cut from the current 0.75-per cent level, if the economy did not strengthen. 

On Thursday, the bank's outgoing governor, Mark Carney, said the monetary policy committee was looking at the merits of near-term stimulus.

As for the latest GDP data, "a poor performance in November was always on the cards given that the uncertainties facing the economy were at a peak with the general election looming and doubts over what would happen on the Brexit front after it had been delayed again from 31 October", noted Howard Archer, chief economic advisor to financial researchers EY ITEM Club. 

"It is clear that businesses were cautious in their behaviour while it also appears that consumers were reluctant to spend."

British Prime Minister Boris Johnson's Conservatives convincingly won a general election in December that has broken the deadlock over the UK's departure from the European Union.

Britain's parliament last week finally approved Brexit, ending years of arguments that toppled two UK governments.

"We expect the economy to get a lift in the early months of 2020 from a more settled domestic political environment following the Conservatives substantial win... and an easing of near-term Brexit uncertainties as the UK leaves the EU with Johnson's deal on 31 January," said Archer.

SINGAPORE — Singapore is opening up its banking industry to digital lenders in a reform that could shake up the sector across southeast Asia, with Chinese billionaire Jack Ma and ride-hailer Grab among those seeking licences.

Traditional banks are being challenged by a new generation of online-only competitors that can offer better savings and borrowing rates, as they do not need to spend money on overheads such as physical branches.

The introduction of digital lenders into the Singaporean market heralds the biggest liberalisation of the financial hub’s banking sector for two decades, and follows similar moves in the United States, Britain, Japan and Hong Kong, among others.

With most adults in the city already having access to financial services, firms awarded licences are likely to use the city-state as a gateway to the wider region, where many consumers still lack bank accounts.

“It’s a total reconfiguration of the terrain — we’re talking about radical changes,” Lawrence Loh, a professor at the National University of Singapore Business School, told AFP.

“Singapore is the launchpad for Southeast Asia.”

An eclectic group of 21 applicants are vying for five digital banking licences, Singapore’s central bank and financial regulator said this month.

They range from Alibaba founder Ma’s online platform Ant Financial, as it ramps up efforts to expand outside China, to a consortium that includes southeast Asian ride-hailing behemoth Grab and the region’s biggest telecom player, Singtel.

Other bidders are Asia’s biggest massage chair maker, V3 Group, and an alliance featuring computer gaming firm Razer and a supermarket chain operator.

‘Challenging old models’ 

Two of the licences will be for full banking operations, allowing holders to take deposits from consumers, while three will be for “wholesale” banking — which limits a lender to mostly dealing with small and medium-sized enterprises.

The winners will be announced in June, with operations starting in 2021, the Monetary Authority of Singapore said.

Observers say the overhaul is unlikely to spark immediate, dramatic changes in Singapore itself — where traditional banks such as DBS and UOB have already introduced digital services.

But the future impact could be massive if the new online lenders expand across a region of more than 600 million people, which is home to booming economies and where many are getting access to the internet for the first time via smartphones.

The opportunities appear huge — nearly a third of people in southeast Asia still do not have bank accounts, according to a report by Google, Singapore investment firm Temasek and business consultancy Bain & Company.

Another 98 million individuals own bank accounts but have insufficient access to financial services, while millions of small and medium-size businesses are in need of funding, the report said.

It projected digital lending in the region would rise five-fold to $110 billion by 2025.

The rollout worldwide of ultra-fast, 5G smartphone infrastructure over the next five years is also expected to accelerate the digital transformation, said Rajiv Biswas, Asia Pacific chief economist at IHS Markit.

“This is fundamentally challenging the old business model of retail banks, particularly in competing for the business of younger generations,” he told AFP.

There could be difficulties in expanding across a region where some governments have traditionally sought to shield domestic banks from foreign rivals.

But analysts say regulators have gradually been removing barriers to competition, while Loh from NUS saw a bright future for digital lending, saying: “People are very quick to adapt.”

“E-commerce, online supermarkets, food delivery — they are all done online.”

NEW YORK — Global stocks mostly drifted lower on Friday as investor appetite waned at the week’s end, US job creation disappointed and damaging new revelations weighed on Boeing.

Asian markets notched some gains for the day, however, as geopolitical tensions eased and a US-China trade deal increasingly looked like a done deal.

The US economy generated 145,000 new jobs in December, shy of a consensus forecast, while wage growth also disappointed, according to official figures released on Friday.

Meanwhile, newly released e-mails showed employees at Boeing — the largest member of New York’s benchmark Dow Jones Industrial Average — mocking aviation regulators and the design of 737 MAX jets, which have been grounded after fatal crashes.

“It’s not that we’re seeing a big selloff as much as we’re seeing a lack of buyers heading into the weekend after some obvious geopolitical turmoil last weekend,” JJ Kinahan, chief market strategist at TD Ameritrade, told AFP.

London, Frankfurt and Paris also fell. Earlier, most Asian stock markets closed higher but investors struggled to maintain a rally triggered by easing US-Iran tensions the previous day.

The toning down of rhetoric from US President Donald Trump and Tehran following an Iranian missile attack on US positions in Iraq — in retaliation for the US killing of a top Iranian commander — soothed concerns about a possible conflict in the Middle East and lit a fire under global equities on Thursday.

Looking ahead to next week, China and the United States put pen to paper on their mini trade deal.

Oil prices lost ground. There appeared to be little market reaction to claims by Canada that Iran shot down an airliner in Tehran this week, killing 176 people.

LONDON — Stocks rallied, the dollar jumped and oil prices steadied on Thursday as traders saw an easing of tensions between the United States and Iran that weighed on haven investments such as gold and the yen.

"Stock markets are strong... as US-Iran tensions have faded," noted David Madden, analyst at CMC Markets UK.

"The strong finish in New York last night prompted buying in Asia overnight, so now the bullish sentiment has reached Europe.

"The US and Iran are still at odds with each other, but as long as a conflict doesn't seem to be on the horizon, the feel good factor is likely to last," Madden added.

US President Donald Trump on Wednesday pulled back from the brink of war with Iran, saying Tehran appeared to be "standing down" after firing missiles — without causing casualties — at US troops based in Iraq.

The comments cooled what threatened to become an uncontrolled boiling over of tensions after Trump ordered the killing last Friday of a top Iranian general, Qassem Soleimani.

Oil prices, which spiked briefly to four-month highs on Wednesday soon after the Iranian attack, dropped back below their start point on the softer tone from both sides.

They managed to avoid further losses on Thursday, trading virtually unchanged compared with prices late in New York on Wednesday. 

On Wall Street, the Nasdaq hit another record high on Wednesday while the Dow and S&P 500 indices enjoyed big gains.

The positive mood continued into Asia. Tokyo and Hong Kong rallied around two per cent and Shanghai ended with a gain of 0.9 per cent.

Frankfurt took the lead in Europe, jumping 1.3 per cent in midday deals.

The rush to riskier investments saw gold, seen as a haven in times of unrest, sink more than 1 per cent, having broken $1,600 per ounce for the first time in seven years.

Assuming Iran-US tensions continue to simmer rather than boil, markets are likely to refocus on the global growth outlook and on trade, with the interim US-China trade deal expected to be signed on 15 January," said National Australia Bank's Tapas Strickland.

The lowering of tensions will allow traders to turn their attention to the release Friday of US jobs data, which will provide the latest snapshot of the world's number one economy, with recent figures indicating it remains robust.

Also in focus is the upcoming earnings season, which kicks off this month.

In London meanwhile, the pound slid around half-a-per cent versus the dollar and euro after Bank of England governor Mark Carney said Britain's economic recovery was "not assured" despite a drop in Brexit uncertainties.

LONDON — Global airline titan IAG on Thursday said its Chief Executive Willie Walsh had quit, after a long stint that saw him oversee the group's creation and rapid expansion, and would be replaced by Luis Gallego, head of Spanish division Iberia.

Walsh stands down on March 26 ahead of retirement, the owner of British Airways (BA) said in a statement.

The announcement brings down the curtain on Walsh's 15-year career with BA and IAG. Starting as BA chief executive, he went on to oversee the 2011 merger of British Airways and Iberia.

IAG has since expanded to include Aer Lingus, Level and Vueling.

The Irishman also spearheaded a cost-cutting drive to compete with budget airlines, despite criticism from some quarters that this cheapened the brand of BA — which once called itself the world's favourite airline.

Walsh, 58, was originally a pilot at Ireland's Aer Lingus but rose to become chief executive, before taking up the same role at BA in 2005.

'Unique' leadership 

"Willie has led the merger and successful integration of British Airways and Iberia," IAG Chairman Antonio Vazquez said in Thursday's statement.

"Under Willie's leadership IAG has become one of the leading global airline groups."

But British Airways suffered major disruption in September when for the first time in its 100-year history pilots employed by the airline went on strike in a long-running pay dispute.

"It has been a privilege to have been instrumental in the creation and development of IAG," Walsh said in the statement.

"I have had the pleasure of working with many exceptional people over the past 15 years at British Airways and at IAG.

"Luis has been a core member of the team and has shown true leadership over the years and I have no doubt he will be a great CEO of IAG," Walsh added.

In London midday trading, IAG shares gained 1 per cent to 624.8 pence on London's benchmark FTSE 100 index, which was up half-a-percentage point overall.

 'Difficult times' 

"Willie Walsh leaving BA has been very well telegraphed so the modest rise in IAG shares probably better reflects the overall market mood," said London Capital Group analyst Jasper Lawler.

"Iberia has been very much an equal partner in the group with BA in recent years so it makes sense that the Iberia chief Luis Gallego takes the reins."

Lawler added that Walsh had navigated other "difficult times, including fuel prices spikes and cut-throat competition from budget airlines".

Iberia has yet to announce Gallego's replacement.

"It is a huge honour to lead this great company. It is an exciting time at IAG and I am confident that we can build on the strong foundations created by Willie," Gallego said.

As Iberia chief since 2013, Gallego managed to return the airline to profitability after years of losses. He began his professional career in the Spanish Air Force before joining the commercial sector.