Business

RIYADH — Saudi Arabia’s energy minister expressed confidence on Sunday of extending a global cut in oil production designed to boost prices.

Khalid Al Falih spoke ahead of a meeting on Thursday between the Organisation of the Petroleum Exporting Countries (OPEC) and Russia, where they are expected to extend the production cut pact.

“We have full commitment from the Russian side, including President [Vladimir] Putin himself,” Falih told reporters on the sidelines of summits between US President Donald Trump and Muslim leaders from around the world.

Saudi Arabia, the world’s biggest oil exporter, and Gulf members of OPEC are also fully behind an extension, while there is “strong” commitment from Iraq and others, Falih said.

With potential for “two or three more producers” to join, Falih was optimistic global supply and demand would balance by the first quarter of next year.

“We will do whatever is necessary,” he said, expressing an openness to “creative” solutions.

At the end of November, OPEC’s 13 members agreed to cut output by 1.2 million barrels per day (bdp) from January 1, initially for a period of six months to reduce a supply glut.

Then in December, non-OPEC producers led by Russia agreed to reduce their own output by 558,000bpd.

Falih said Russia “ultimately delivered” its 300,000bpd cut, though it took longer than hoped for.

“We have patiently worked together, but I think there is good faith, there is good cooperation, and going forward we intend to build on this relationship.”

Last week Russia and Saudi Arabia, the world’s two biggest oil producers, jointly called for oil producers to extend their production cuts to March 31, 2018.

Saudi Arabia currently produces close to 10 million bpd, Falih said.

Oil prices are near $50 per barrel after shedding around half of their value since mid-2014.

BERLIN — A rare working Apple-1, the first computer produced by Steve Jobs' world-beater-to-be company four decades ago, sold for less than expected at auction in Germany on Saturday.

One of only eight working models in the world, the machine fetched 110,000 euros ($125,000), well below the expected 180,000-300,000 euros — suggesting that a spike in prices after Jobs' 2011 death is definitely over.

"From our point of view we are back at normal levels. Five years after the death of (Apple co-founder) Steve Jobs the 'hype' has settled back," Uwe Breker, who oversaw the auction in Cologne, told AFP.

Breker's auction house, which specialises in the sale of technical antiques, had also been involved in a 2013 sale of another Apple-1 — which fetched 516,000 euros.

The model auctioned off Saturday and whose original owner was a Californian engineer, still had its receipt, its operating manual and other documents.

"[The Apple-1] was one of the first opportunities for someone to possess a real computer. I'd been working with computers for a while but they were huge," original owner John J. Dryden, who bought the Apple in 1976, said Friday.

He admitted that parting with the machine was a wrench but said the time had come as he had not used it in a long time.

The computer was one of around 200 Apple-1 units marketed by Steve Jobs and Steve Wozniak, who developed and built it.

Saturday's buyer was a German engineer who collects old computers.

AMMAN — Jordan Investment Commission President Thabet Al Wir on Saturday urged South Korean businessmen to increase their investments in Jordan, to further participate in developing the country’s industrial, technical and tourist sectors, according to the Jordan News Agency, Petra.

During a meeting that was organised by the Jordanian-Korean Business Council, marking the 55th anniversary of establishing relations between the two countries, Wir said that despite challenges, the country’s economy has continued to grow, noting that the Republic of Korea is a strategic partner for Jordan.

In the past 15 years, the joint commercial exchange volume grew more than five folds, Wir said during the meeting, which was attended by South Korea’s ambassador to Jordan, Lee Bom-yon. 

BRUSSELS — The European Commission on Thursday fined US social media giant Facebook 110 million euros ($120 million) for providing incorrect and misleading information on its takeover of WhatsApp, imposing its biggest penalty linked to a merger.

"Today's decision sends a clear signal to companies that they must comply with all aspects of EU merger rules, including the obligation to provide correct information," EU Competition Commissioner Margrethe Vestager said in a statement.

"The Commission must be able to take decisions about mergers' effects on competition in full knowledge of accurate facts," Vestager said.

Facebook said in response that it cooperated with the Commission.

"We've acted in good faith since our very first interactions with the Commission and we've sought to provide accurate information at every turn," a Facebook spokesperson said.

"The errors we made in our 2014 filings were not intentional and the Commission has confirmed that they did not impact the outcome of the merger review. Today's announcement brings this matter to a close."

EU regulators cleared the then $19 billion Facebook acquisition of WhatsApp in late 2014, finding no reason to believe it would dampen competition in the burgeoning social media sector.

In its statement on Thursday, the Commission recalled that the merger rules require companies to provide regulators with the accurate information essential to any review.

It noted that when Facebook notified the Commission of the acquisition in 2014, the company had said it would "be unable to establish reliable automated matching between Facebook users' accounts and WhatsApp users' accounts".

"However, in August 2016, WhatsApp announced updates to its terms of service and privacy policy, including the possibility of linking WhatsApp users' phone numbers with Facebook users' identities," it said. 

After launching a probe last year, the Commission "found that, contrary to Facebook's statements in the 2014 merger review process, the technical possibility of automatically matching Facebook and WhatsApp users' identities already existed in 2014, and that Facebook staff were aware of such a possibility”.

The Commission said Thursday's decision and the fine would have no impact on its October 2014 clearance of the deal.

Commission spokesman Ricardo Cardoso said the fine was less than it would have been because Facebook cooperated.

Cardoso added it was nonetheless the "highest fine ever" imposed by the commission for breaches linked to a merger and would serve as a deterrent to others.

AMMAN — A hotel project is expected to create more than 1,200 jobs for the country during its construction phase, besides around 530 jobs once it is completed, the Jordan News Agency, Petra, reported on Thursday.

Prime Minister Hani Mulki on Thursday laid the cornerstone for the Ritz-Carlton and residences project, a Jordanian investment in its entirety, whose cost is estimated at $235-million, according to Petra. 

Tawfiq Fakhoury, founder and chairman of Al Eqbal Real Estate Development, said His Majesty King Abdullah's commitment to promote Jordan and his calls to make use of the capabilities available in the tourism sector inspired the company to launch the project. 

Emad Al Kilani, the company’s CEO said the project is scheduled to be completed in 2020 and will reflect the Jordanian heritage, to be depicted in a modern way. The project will draw on the expertise of both local and international architects to bring about the desired results, he added.  

The hotel project, to be constructed near the fifth circle, will include 233 rooms while the envisaged 20-storey Carlton-Ritz residences tower will comprise 90 apartments that will be offered for sale, Petra reported.

HONG KONG — Oil prices pressed on with fresh gains in Asian trade on Tuesday, boosting energy firms, after Russia and Saudi Arabia indicated they could extend an output cut into next year.

The world's top two crude-producing nations raised the idea at the weekend, with a deal agreed between OPEC — of which Saudi Arabia is the key player — and Russia coming to an end in six weeks.

The news sent oil prices soaring about 2 per cent on Monday, in turn dragging global energy firms with them.

Monday's gains come after the commodity was battered earlier this month on worries that the production cut was not enough to make a dent in a worldwide supply glut and increasing output from the US and other nations.

"The comments from Saudi Arabia and Russia are driving prices up but I'm sceptical that crude will see a new level," Hong Sung Ki, a commodities analyst at Samsung Futures, told Bloomberg News. 

"As producers in the US are expected to increase output, prices will continue to be restricted from rising."

But Greg McKenna, chief market strategist at AxiTrader, pointed out the fact that traders were overlooking the need for a further cut in oil output suggested problems persisted.

"That such a large output cut extension is a tacit admission of failure is for another day and discussion," he said in a note.

On Tuesday the International Energy Agency said supply and demand in the oil market are close to matching up but warned rising US supply could mitigate the OPEC-led production cuts. 

Hong Kong-listed PetroChina gained 0.4 per cent and CNOOC put on 0.3 per cent, while Woodside Petroleum in Sydney was up 0.2 per cent and Rio Tinto jumped 1.4 per cent.

Euro extends gains 

On equity markets, Tokyo edged up 0.3 per cent by the close, Hong Kong slipped 0.1 per cent on profit-taking following a six-day rally, while Shanghai finished up 0.7 per cent, marking a fourth straight day of gains.

Seoul and Sydney each added 0.2 per cent.

But Singapore, Taipei and Wellington were all lower.

In New York the S&P 500 and Nasdaq each ended at record highs, as did London and Frankfurt, with German traders cheering a strong win for Chancellor Angela Merkel's party in a regional vote.

In early European trade on Tuesday, London opened slightly higher but Frankfurt lost 0.2 per cent while Paris was 0.5 per cent lower.

On currency markets, the euro extended gains to break above $1.10 after the German election result while the dollar's weakness has also been caused by a series of below-par results out of the US, including on inflation. 

"The euro is strengthening as political concerns in Europe ease while the dollar is being sold" after the weak economic data, Marito Ueda, a senior dealer at FX Prime, told AFP.

The greenback was also down against most other higher-yielding currencies, with the South Korean won 0.7 per cent higher, the Thai baht up 0.2 per cent and the Malaysian ringgit 0.5 per cent stronger.

AMMAN — Growth in the global economy has picked up in the last six months in line with expectations, but in many regions, it remains below the levels needed for rapid progress towards achieving the Sustainable Development Goals, according to the UN World Economic Situation and Prospects as of mid-2017 report, released on Tuesday. 

The report identifies a tentative recovery in world industrial production, along with reviving global trade, driven by rising import demand from East Asia, in particular. 

World gross product is expected to expand by 2.7 per cent in 2017 and 2.9 per cent in 2018, unchanged from UN forecasts released in January this year. 

This marks a notable acceleration compared to just 2.3 per cent in 2016.

In a statement on the report, Lenni Montiel, assistant secretary general for economic development in the UN Department of Economic and Social Affairs, underscored the “need to reinvigorate global commitments to international policy coordination to achieve a balanced and sustained revival of global growth, ensuring that no regions are left behind”.

According to the report, underpinning global economic recovery is firmer growth in many developed economies and economies in transition, with East and South Asia remaining the world’s most dynamic regions. 

However, economic recovery in South America is emerging more slowly than anticipated, and gross domestic product (GDP) per capita is declining or stagnant in several parts of Africa.

Forecasts for GDP growth in some of the least developed countries (LDCs) have been revised downward since January, with growth in the group as a whole projected to remain well below the Sustainable Development Goals target of at least 7 per cent.

The report notes that under the current growth trajectory and assuming no decline in income inequality, nearly 35 per cent of the population in LDCs may remain in extreme poverty by 2030.

Additional policy efforts are needed to foster an environment that will accelerate medium-term growth and tackle poverty through policies that address inequalities in income and opportunity, according to the report. 

It points to a combination of short-term policies to support consumption among the most deprived and longer-term policies, such as improving access to healthcare and education and investment in rural infrastructure.

The UN report states that inflation dynamics in developed economies have reached a turning point, and risks of prolonged deflation have largely dissipated. 

By contrast, inflationary pressures have eased in many large emerging markets, allowing interest rates to come down.

The report further stresses heightened uncertainty over international policy, which will hinder a strong rebound in private investment globally. 

Corporate sectors in many emerging economies are vulnerable to sudden changes in financial conditions and destabilising capital outflows, which could be triggered by faster-than-expected interest rate hikes in the United States.

The report also highlights some positive developments related to environmental sustainability. 

The level of global carbon emissions has stalled for three consecutive years. 

This reflects growing renewable power generation, improvements in energy efficiency, transition from coal to natural gas, and also slower economic growth in some major emitters. 

But, the report also warns against waning commitments going forward.

Looking ahead, the report advocates for renewed global commitments to deeper international policy coordination in key areas, including aligning the multilateral trading system with the 2030 Agenda for Sustainable Development; expanding official development aid; supporting climate finance and clean technology transfer; and addressing the challenges posed by large movements of refugees and migrants.

BEIJING — China’s growth took a step back in April after a surprisingly strong start to the year, as factory output to investment to retail sales all tapered off as authorities clamped down on debt risks in an effort to stave off a potentially damaging hit to the economy.

Waking up to the systemic threat posed by cheap credit-fuelled stimulus since the 2008-9 global financial crisis, Beijing has continued to tighten the screws on speculative financing over the past several months.

Data on Monday highlighted the broad economic impact of these regulatory curbs, with below-forecast factory output in April and fixed-asset investment in the first four months of the year reinforcing evidence of a weakening manufacturing sector and slowing momentum in the world’s second-biggest economy.

“If anything [the slowdown] is even faster than we expected,” said Julian Evans-Pritchard at Capital Economics in Singapore in an interview before the data was released.

However, “we’re still some way off from the economy weakening to the point where it will test the tolerance of policymakers...as the urgency to address some of these financial risk issues [is even greater],” he said.

Factory output was up 6.5 per cent in April from a year earlier, down from 7.6 per cent in March, and fixed-asset investment rose 8.9 per cent in the first four months of the year, off the 9.2 per cent pace in January-March. 

Analysts polled by Reuters had predicted factory output would grow by 7.1 per cent in April, and tipped fixed asset investment to rise 9.1 per cent in January-April.

Output growth slowed on tumbling steel and iron ore prices amid concern over rising inventories after China’s mills cranked out as much metal as possible to drive factory production to its highest since December 2014.

However, on a volume basis, steel output hit a record in April, data Monday showed, stoking worries of a growing glut as demand remains flat even as China says it is ahead of schedule on capacity reduction targets.

Fixed asset investment in the manufacturing sector also slowed over January-April, with growth of 4.9 per cent down from 5.8 per cent in the first quarter. Infrastructure spending, however, continued to grow over 23 per cent year-on-year in the same period, supported by Beijing’s Belt and Road initiative to expand investment links with Asia, Africa and Europe.

Property cools 

Analysts say Beijing is keen to ensure steady economic growth ahead of the 19th Communist Party Congress later in the year. Chinese leaders have pledged to shift the emphasis to addressing financial risks and asset bubbles which analysts say may pose a threat to the Asian economic giant if not handed well.

China’s central bank has been guiding short-term interest rates higher to help contain debt perils, though it is treading cautiously to avoid hurting economic growth. 

A red-hot property market, fuelled by speculative investments, has been identified by analysts and policymakers as one of the biggest risks to growth.

Monday’s data showed investment in property development picked up in April, although sales growth was significantly slower, suggesting investment in the sector remained robust even as intensified government controls to rein in the market began to take effect.

The area of property sold grew 7.7 per cent year-on-year in April, the lowest since December 2015 and well short of the 14.7 per cent increase in March. 

AMMAN — A Korean delegation, comprising representatives of nine companies specialised in the manufacturing and exporting of pharmaceuticals, medical materials and equipment, held business meetings with their Jordanian counterparts in Amman on Sunday.

The delegates and the participants discussed ways to boost business cooperation during the meetings, which were attended by Korea’s Ambassador to Jordan Lee Bom-yon.

Organised by Korea Business Centre in Amman, The Commercial Office of the Embassy of the Republic of Korea, the meetings drew a large  number of participants from Jordan, according to a statement of the commercial office.

The delegation was accompanied by representatives of Korea Health Industry Development Institute who visited the Private Hospitals Association and Royal Medical Services to discuss the possibility of further cooperation.