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NEW YORK — The Dow Jones Industrial Average, the most famous equity index benchmark on Wall Street shot above 20,000 for the first time at the open Wednesday. 

The blue-chip stocks index quickly blew through the much-anticipated milestone in the opening seconds of trading, culminating a US rally in the wake of US President Donald Trump’s election, in anticipation he will produce pro-growth policies. 

About 15 minutes into trading, the Dow was 20,010.71, up 0.5 per cent.

The broad-based S&P 500 also rose 0.5 per cent to 2,290.43, while the tech-rich Nasdaq Composite Index gained 0.6 per cent to 5,635.10.

The S&P 500 and the Nasdaq each closed at all-time records on Tuesday.

In crossing the 20,000 threshold after many failed tries, the market regained its optimistic mindset after the rally spurred by Trump’s election stalled in mid-December and up to the January 20 inauguration.

Analysts said the shift was triggered by Trump’s announcements Tuesday to advance two major pipeline projects that had been blocked by former president Barack Obama. 

The pipeline move “wasn’t a surprise as it was consistent with campaign rhetoric, yet it was a timely reminder for a listless market of the Trump Administration’s push to increase economic activity in the US”, said Briefing.com analyst Patrick O’Hare.

The rally spurred more stock buying by investors who were caught off guard in what O’Hare dubbed “FOMO” or the “fear of missing out”.

The renewed market confidence suggests investors are shrugging off worries about Trump, which include fears he will ignite a trade war with protectionist policies and push hard on controversial social policies. 

Trump was expected later Wednesday to announce the first steps towards building a massive wall on the Mexican border, a campaign promise that pleased his political base but has been criticised by others as unnecessary and mean-spirited, as well as a misuse of funds.

ANKARA — The Turkish central bank on Tuesday hiked its headline interest rate by 75 basis points in a bid to boost the ailing lira but failed to impress markets looking for even sharper action.

The monetary policy committee of the bank said the overnight lending rate was being lifted to 9.25 per cent from 8.5 per cent, coming on the heels of a rate hike in November last year. 

But the committee kept its one-week repurchasing (repo) rate unchanged at 8 per cent and the overnight borrowing rate was kept at 7.25 per cent.

But with markets hoping for even more and taken aback by the absence of any move in the repo rate, the lira initially lost 1.95 per cent in value against the dollar after the announcement.

It later stabilised to trade at 3.76 to the greenback, a loss in value of 0.3 per cent on the day but well short of the rally many had hoped for after the meeting.

Some economists expected interest rates to be increased by 100 basis points — or a full percentage point — after the lira lost seven per cent of its value against the dollar in the first four weeks of 2017 alone.

The lira's recent performance has been the worst of any emerging markets currency, alarming the government ahead of a referendum expected in April on changing the constitution to give President Recep Tayyip Erdogan more power.

The bank opened the door to further hikes, warning in a statement that a "significant rise in inflation" was expected in the short term.

Inflation was reported at 8.5 per cent in December, compared with 7 per cent the previous month.

"The committee decided to strengthen the monetary tightening in order to contain the deterioration in the inflation outlook," it said. 

It added: "If needed, further monetary tightening will be delivered."

'Not ready for
decisive hikes' 

Economists said the decision showed the bank was not convinced by the need for radical rate hikes to halt the plunge in value of the lira and would prefer employ other tactics.

The lira has since January 10 pared losses after the bank took measures to increase the amount of liquidity in the market, boosting demand for the lira.

The decision showed the bank was not ready to deliver "decisive, orthodox hikes even so soon after [the lira] hit all-time lows in a move that seemed on the verge of turning disorderly", Inan Demir of Normura International said in a note.

"We feel the bank still thinks that this Turkish lira depreciation will be a temporary one and its impact on inflation will be temporary," said Ozgur Altug, chief economist at BGC partners in Istanbul.

Finansbank economist Gokce Cilek said it would take "another round of sharp depreciation" for interest rates to be hiked further, saying the bank would be content for now with non-interest rate tools.

Economists also complained that policymaking was needlessly confusing at a critical time, with the date of the next monetary policy meeting unknown and the bank still employing an array of multiple interest rates.

William Jackson, senior emerging markets economist at Capital Economics, said there were "worrying signs" the bank is making the "already-convoluted monetary policy setup even more complicated".

The ruling Justice and Development Party has dominated Turkish politics since winning its first majority in 2002. The economy's strong performance and investment in public infrastructure has been a pillar of its success.

Hurriyet daily's well-connected columnist Abdulkadir Selvi said the economy would be the first priority on the government's agenda as the country headed to the referendum.

"The aim of the government is to breathe life into the economy before the referendum to calm the public," Selvi wrote Tuesday.

SEOUL — The world's biggest smartphone maker Samsung blamed faulty batteries on Monday for the fires that led to the recall of its flagship Galaxy Note 7 device.

Internal and independent investigations "concluded that batteries were found to be the cause of the Note 7 incidents", the South Korean company said in a statement.

The giant conglomerate was forced to discontinue the device —originally intended to compete with Apple's iPhone — after a chaotic recall that saw replacement phones also catching fire.

The debacle cost the company billions in lost profit and reputational damage.

Samsung acknowledged Monday that it provided the specifications for the batteries, adding: "We are taking responsibility for our failure to ultimately identify and verify the issues arising out of battery design and manufacturing.”

"We have taken several corrective actions to ensure this never happens again."

Samsung announced a recall of 2.5 million units of the oversized Galaxy Note 7 in September 2016 after several devices exploded or caught fire.

When replacement phones also started to combust, the company eventually decided to kill off the Note 7 for good.

Monday's English-language Samsung statement referred only to "incidents" but in Korean it spoke of "damage by fire".

ISTANBUL — Turkish businessman Tekin Acar had contracts to open branches of his leading cosmetics chain in ten new shopping malls this year. A few days ago he cancelled nine of them after sharp falls in the lira meant he would struggle to afford the rents.

Turkey's currency has lost around a quarter of its value since the middle of last year, causing havoc for retailers selling imported goods or paying rent pegged to the US dollar.

Many have already been suffering from a sharp economic slowdown and dwindling tourism numbers after a spate of deadly bombings.

Foreign brands in Turkey are also suffering. Dutch clothing chain C&A, Britain's Topshop, German cosmetics firm Douglas and US-based dietary supplement retailer GNC have disappeared from shopping centres in recent months.

Retail spaces in some of Istanbul's biggest malls stand empty.

"Since many brands have closed up stores one by one, people don't notice it," said Acar, who founded the cosmetics chain that bears his name in 1979 and has 76 stores across Turkey.

"In my 46-year career, it's the first time I'm having trouble paying my rent, utilities and salaries. I've put all my income from other businesses into this, I've increased capital but it isn't enough. I'm not George Soros, this is it for me."

Hundreds of malls sprung up across Turkey in the past two decades, symbols of the rapid consumption-led growth that helped build President Recep Tayyip Erdogan's reputation when he was prime minister from 2003-2014.

But that growth has left structural weaknesses in the economy, and the suffering retail sector and wider economic malaise come at an awkward time for Erdogan. He is expected to seek popular support in a spring referendum for bolstering the powers of his office and can ill-afford a sharp slowdown.

Acar's business has been further hit by a hike last week in import taxes on some cosmetics and by restrictions on the products for which credit card payments can be taken in installments, part of a drive to boost Turkey's savings rate.

Many of the new malls were financed with dollar and euro loans and their owners, who have seen their debt burden rise as the lira fell, charge rent in hard currency to offset the risk.

The payback period for shopping mall developers in Istanbul has risen in recent years to an average of 22 years from 15-16, largely due to exchange rate risk and uncertainty about rental incomes, according to Hulusi Belgu, head of the Turkish Council of Shopping Centres (AYD).

His association estimates that $53 billion has been invested in the country's 377 shopping malls over the past few decades, 70 per cent of it financed through debt, much of it dollar and euro-denominated.

There was "constant demand" from retailers to seek rent reductions because of the weaker lira, Belgu told Reuters, and mall developers — despite their own financial pressures — were having to do their best to help.

"In the end, the mall investors look at the rent to turnover ratios and act accordingly. We pull the rents to healthy ratios that allow [the retailers] to survive," he said.

Falling confidence

The lira has fallen as much as 10 per cent against the dollar since the start of 2017, making it the world's worst performing major currency. That comes on top of double-digit falls both last year and the year before.

Erdogan has urged Turks to sell dollars to prop up the lira, calling for a "sense of national mobilisation", while the central bank has taken steps to tighten lira liquidity.

Financial market investors say only a sharp interest rate hike when the central bank meets on January 24 will put a floor under the lira's losses, although Erdogan has long been opposed to such a move, fearing it will further slow growth.

The lira's fall has been a major blow to middle-class Turks, for whom life is largely dollar-denominated. Fuel prices and private school fees, clothing and electronics have all risen in price with the lira's decline, denting consumer sentiment.

Economic growth in the third quarter, the latest data available, turned negative for the first time in seven years and is forecast at just 3.2 per cent for 2016, a far cry from the high single-digit rates on which Erdogan built his reputation as prime minister from 2003-14.

"It's crucial for retailers to reduce the cost of rent during tumultuous times as the decline in sales puts a stress on our financials and rent is among the largest fixed costs for our sector," said Ahmet Can Tarkan, head of Dilasima Group, a boutique fashion retailer.

Dilasima, which operates 43 stores in five cities, imports Italian brands including MaxMara, Furla and Marella, meaning its cost of goods has risen in lira terms, as well as its rents.

"We try not to reflect small appreciations in foreign currencies onto prices but we can only absorb increases up to 5 per cent," he said. "We need to be able to replace our goods with new merchandise every 6 months, so we do push up prices when the appreciation is higher than 5 per cent."

For more affordable brands, passing on the rising costs to more price-sensitive consumers is far harder.

C&A sold its stores to DeFacto, a Turkish retailer, last June amid what it described as "challenging" market conditions.

Topshop said it had closed its physical stores in Turkey due to lease expirations, but was servicing the market online and was looking for new sites. Parent company Arcadia Group, which also owns brands including Dorothy Perkins and Miss Selfridge, is still active in Turkey.

GNC said in October it had closed 85 stores in the country, while Douglas, which first opened in Turkey in 2006, said it closed its 11 stores the same month. A Douglas spokeswoman said the company withdrew because it did not expect its small market share to show a major improvement "in the foreseeable future".

Despite being at loggerheads over rent, what mall developers and retailers do agree on is that the lira's volatility, rather than its weakness alone, is the biggest challenge.

"In the long term, we're more concerned about consumer morale than the appreciation in foreign currencies. The consumer will be willing to pay a higher price in lira terms if they feel confident about the state of Turkish economy," Tarkan said.

"Stability in foreign exchange rates is key to creating that confidence among consumers."

SAN FRANCISCO — Apple on Friday sued Qualcomm, accusing the California chipmaker of abusing its market power to demand unfair royalties, echoing charges filed days earlier by US antitrust regulators.

Apple said in the court filing that it has been overcharged "billions of dollars" by its chipmaking partner's "illegal scheme."

Apple also claimed Qualcomm owes it a billion dollars but is refusing to pay in retaliation for the iPhone maker's cooperating with South Korean antitrust regulators looking into the chipmaker's actions in that country.

"For many years Qualcomm has unfairly insisted on charging royalties for technologies they have nothing to do with," Apple said in an e-mail statement.

"To protect this business scheme Qualcomm has taken increasingly radical steps, most recently withholding nearly $1 billion in payments from Apple as retaliation for responding truthfully to law enforcement agencies investigating them."

The suit charges Qualcomm of building a business model on using its rights to older, legacy technology considered telecommunication industry standards to raise royalties when Apple innovates with features such as TouchID fingerprint recognition or digital wallets in mobile devices.

"Despite being just one of over a dozen companies who contributed to basic cellular standards, Qualcomm insists on charging Apple at least five times more in payments than all the other cellular patent licensors we have agreements with combined," Apple said.

Antitrust woes 

Apple noted in the suit that Qualcomm's business practices have come under scrutiny by antitrust regulators in an array of countries for selling its smartphone chipsets only to makers agreeing to its "preferred licence terms" for essential mobile telecom patents.

Apple asked for a jury trial, and for damages, including Qualcomm paying the company what it owes plus giving up excessive royalties it has raked in.

Qualcomm did not immediately respond to an AFP request for comment.

The Apple filing came three days after the US Federal Trade Commission filed suit in federal court in California claiming Qualcomm abused its market power in as part of its "unlawful maintenance of a monopoly in baseband processors”, which are devices that enable cellular communications in phones and other products.

Qualcomm rejected the agency's case as "significantly flawed", arguing that reasoning at the heart of the civil complaint is wrong.

South Korea's anti-trust watchdog last month slapped Qualcomm with a record fine exceeding $850 million for abusing its dominant market position as a maker of baseband chipsets used in mobile phones.

Room for rivals

Apple relies on Qualcomm for chip-based modems that enable iPhones and iPads to communicate with telecommunication networks.

Apple undoubtedly knows of the antitrust tide rising against Qualcomm and would like to help provide room for rival chipmakers to flourish, perhaps letting Intel improve its position, according to analyst Patrick Moorhead of Moor Insight and Strategies.

"I think Apple is not comfortable in feeling that they have only one source and are taking this opportunity to go after Qualcomm," Moorhead said, referring to the mobile device modems.

"Qualcomm is being looked at on every continent on the planet; this is probably, strategically, the right time for Apple to do this."

While the legal case alleges exclusionary contracts and the idea of being overcharged for licensing, it may well be powered by Apple wanting to ramp up competition to Qualcomm so it can negotiate better deals, the analyst said.

Modem chips are separate from processors that act as the brains or graphics engines for mobile devices.

DAVOS, Switzerland — OPEC countries could cut oil production again this year, Saudi Arabia's energy minister said Thursday.

Speaking at the World Economic Forum at the Swiss ski resort of Davos, Khalid Al Falih said he "would not exclude" another cut to follow last year's agreement if higher prices do not stick because of variables outside producers' control, such as a potential collapse in demand.

"I think plan b is to be resilient and to be flexible and to deal with the circumstances," he said.

"There have been times in the past where OPEC has taken one action and then a few months later found out that that action was not sufficient and followed up with another action," he said. "We will not exclude that and that's why we're meeting up again in May."

Asked if that could involve further cuts, the minister said "if needed, absolutely".

However, he said his baseline expectation is that it "will not be necessary".

OPEC agreed in late November to cut its production by 1.2 million barrels a day to 32.5 million barrels, the first reduction agreed to by the cartel since 2008. Nearly a dozen other countries, including Russia, pledged in December to cut an additional 558,000 barrels a day.

Those cuts are due to expire in June and Al Falih said an extension is also possible.

He warned that extending the cuts "could create a shortage too early which we don't want to”.

"But if we find out... that it's not enough, we will do what is necessary."

Oil prices are trading over $50 a barrel, nearly double the level they were a year ago, largely because of the production cuts.

For higher oil prices to stick, producers will have to show they are complying with their agreements.

Earlier Thursday, the Paris-based International Energy Agency (IEA) said global oil output is dropping for the first time in months, as Saudi Arabia and other oil-producing countries follow through on the pledged cuts.

The IEA's monthly report on Thursday showed OPEC production dropped to 33.09 million barrels a day in December from 34.2 million the previous month.

The IEA's executive director, Fatih Birol, cautioned that the higher oil prices prompted by the production cuts could see a rise in output from US shale gas producers and that newly increased supply could weigh on oil prices.

"Don't underestimate the shale gas reaction," he said.

Oil prices shot up to more than $100 a barrel in mid-2014 before a long slide sent them crashing below $30 in early 2016.

A number of factors hit prices, including worries over the scale of the economic slowdown in China and high supply from OPEC countries, notably Saudi Arabia, as they seemingly strove to drive US shale gas producers out of business.

Now the higher prices may entice those shale gas producers to ramp up production again.

GAZA CITY, Gaza Strip — At night, large swaths of the Gaza Strip plunge into darkness — the result of chronic and worsening power outages. In crowded city streets, the only source of light comes from the headlights of passing cars.

The power shortages are the worst to hit Gaza since Hamas seized control of the territory 10 years ago. In recent weeks, electricity has been available for just three or four hours a day. Although some relief has arrived, the power woes have turned Gaza into a cold, dark place at the height of the winter season and sparked rare public protests against the militant group.

"Our situation is bad. I swear to God it's very, very bad," said Majed Abu Nemer, a father of six who supports his family by transporting goods on a horse-drawn cart.

On a recent day, he and other residents in a poor neighbourhood of the southern town of Khan Younis burned scrap wood inside their homes, unbothered by the smoke. His family clustered around the fire, on which their mother cooked soup and roasted bread.

"I can't afford to keep buying candles, or go and bring an [emergency] light," Abu Nemer said. "When the light's battery is about to die, I go to my neighbours to charge it so I can see how my children are sleeping and if they are covered."

The shortages have not affected hospitals in the territory, which receive diesel from several international aid groups in order to run generators.

This week, the wealthy Gulf country Qatar, one of Hamas' few allies, delivered a grant to buy more fuel for Gaza's lone-power plant. The aid is expected to increase the electricity supply to as much as two eight-hour shifts every 24 hours.

But the grant does little to solve the underlying reasons for the crisis. Gaza has not enjoyed full-time electricity in at least a decade because this requires 400 to 450 megawatts of power daily. Israel provides Gaza with 120MW and Egypt 30.

The territory's lone-power plant produces 50MW, bringing the daily total in the best of times to around half the requirement. In winter, increasing demand and the worn-out electrical grid cause repeated failures.

The diesel for the power plant comes from Israel, but the Hamas-run energy authority in Gaza pays for it. Hamas accuses the rival West Bank-based Palestinian Authority, which coordinates the electricity delivery with Israel, of taxing the fuel and driving up the price.

Hamas can afford to buy enough diesel to run two turbines at the power plant. With the Qatari grant, Hamas is now buying enough to run a third turbine.

While Qatar's help has brought some relief, residents still lack power for at least eight hours a day, usually during the evenings. For many residents, doing laundry, baking bread, studying and even showering — for the many residents whose water supply depends on electric pumps — take place in the middle of the night, when power comes back on.

But keeping warm remains the greatest challenge, especially for those who live in apartments. The power alternatives, including batteries and even solar systems used by the wealthy, cannot run electrical heaters, so people resort to older, more dangerous means, like burning coal or dusting off long-abandoned kerosene heaters.

During the daytime, acrid smoke emitted from humming generators outside restaurants spills onto chunks of meat rotating on shawarma spits. Additional external wiring for battery-powered lights can be seen in shops and small businesses.

Restaurant owner Abdul Salam Al Sheikh said he has been able to keep the lights on with a generator, but the extra fuel costs are destroying his business. "It eats up your capital. It increases the costs," he said. "My money is being burned."

DAVOS, Switzerland — Chinese President Xi Jinping offered a vigorous defence of globalisation and free trade in a speech at the World Economic Forum (WEF) in Davos on Tuesday, which underscored Beijing's desire to play a greater global role as the United States turns inward.

Likening protectionism to "locking oneself in a dark room" to protect from danger, but at the same time depriving the room of "light and air", he cautioned other countries against pursuing their own interests at the expense of others.

Xi did not mention Donald Trump in his speech of nearly an hour but many of the messages he sent seemed directed at the US president-elect, who campaigned for the White House on pledges to protect US industries from foreign competition and levy new tariffs on goods from China and Mexico.

"No one will emerge as a winner in a trade war," Xi told the forum in the Swiss Alps.

He said economic globalisation has become a "Pandora's Box" for many, but that it was not the cause of many global problems. He added that international financial crises were caused by the excessive pursuit of profits, not globalisation.

Xi's appearance, a first for a Chinese leader at the annual meeting of political leaders, CEOs and bankers in Davos, came as doubts emerge about whether the United States will remain a force for multilateral cooperation on issues like trade and climate change.

Europe, meanwhile, is pre-occupied with its own troubles, from Brexit and militant attacks to the string of elections this year in which anti-globalisation populists could score gains.

This has left a vacuum that China seems eager to fill.

"It is no coincidence that Xi chose this year to make the trip up the magic mountain," said Ian Bremmer, president of Eurasia Group, a US -based political risk consultancy.

More than half a dozen senior Chinese government figures are in Davos this week, far more than in past years.  A large number of sessions are focused on Asia, including one entitled "Asia Takes the Lead".

WEF founder Klaus Schwab said Xi's presence was a sign of the shift from a uni-polar world dominated by the United States to a more multi-polar system in which rising powers like China will have to step up and play a bigger role.

"In a world marked by great uncertainty and volatility the world is looking to China," Schwab said before Xi spoke.

AMMAN — Secretary General of the Jordan Investment Commission (JIC), Mikhled Omari, on Tuesday  briefed Imad Faqid, vice president of the Airbus Group for MENA, on the procedures that the government has taken recently to increase foreign and local investment in the country.

During the briefing, Omari said the government has endorsed a unified investment law to eliminate red tape, offer more incentives, and make it easier for investors to set up projects, the Jordan News Agency, Petra, reported. Omari asserted JICs willingness to support Airbus Group in bringing more investments to the Kingdom.

LONDON — Eight men own the same wealth as the poorest half of the world's population, a level of inequality which "threatens to pull our societies apart", Oxfam said on Monday ahead of the World Economic Forum opening in Davos.

The wealth of the world's poorest 3.6 billion people is the equivalent to the combined net worth of six American businessmen, one from Spain and another from Mexico.

Picked from Forbes' billionaires list, they include Microsoft founder Bill Gates, Mark Zuckerberg who co-founded Facebook, and Jeff Bezos, founder of Amazon.

Oxfam pointed to a link between the vast gap between rich and poor and growing discontent with mainstream politics around the world.

"From Brexit to the success of Donald Trump's presidential campaign, a worrying rise in racism and the widespread disillusionment with mainstream politics, there are increasing signs that more and more people in rich countries are no longer willing to tolerate the status quo," Oxfam said in its new report, "An economy for the 99 per cent".

The charity said new data on wealth distribution from countries such as India and China had prompted it to revise its own calculation, having said a year ago the wealth of half the world's population was in the hands of 62 people.

Inequality will be among the issues topping the agenda as the world's political and business elite meet in Davos from Tuesday until Friday, when 3,000 people will gather for the annual meeting of the World Economic Forum. 

"Responsive and responsible leadership" has been chosen as the theme of the summit, which organisers said was a response to a "backlash against globalisation leading to two surprising vote results and a rise in populism in the West".

In its report Oxfam called for an increase in tax rates targeting "rich individuals and cooperations", as well as a global agreement to end competition between countries to lower corporate tax rates. 

The charity also condemned lobbying by corporations and the closeness of business and politics, calling for mandatory public lobby registries and stronger rules on conflicts of interest.