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Nine Jordanian banks among top 100 most powerful Arab banks for 2023

By - Dec 23,2024 - Last updated at Dec 23,2024

AMMAN — Nine Jordanian banks have been ranked among the 100 most powerful Arab banks in terms of capital for 2023, according to Secretary-General of the Union of Arab Banks Wissam Fattouh.

An analytical study by the Union's General Secretariat revealed that the rankings, based on capital, included nine Jordanian banks: Arab Bank, Housing Bank, Capital Bank of Jordan, Jordan Kuwait Bank, Union Bank, Jordan Islamic Bank, Bank of Jordan, Cairo Amman Bank, and Jordan Ahli Bank.

The combined capital of these nine banks totals $13.3 billion, with their aggregate assets valued at approximately $131.3 billion, according to the Jordan News Agency, Petra. 

Arab Bank led locally, securing the 16th spot regionally in terms of capital, followed by Housing Bank in 57th place, and Capital Bank of Jordan in 70th.

Jordan Islamic Bank followed in sixth place locally and 80th regionally, with the Bank of Jordan in seventh place locally and 82nd regionally. 

Cairo Amman Bank ranked eighth locally and 88th regionally, and Jordan Ahli Bank ranked ninth locally and 98th in the Arab world.

In terms of assets, Arab Bank led locally and ranked 14th in the Arab world, followed by Housing Bank in second place locally and 61st regionally. 

Capital Bank of Jordan secured third place locally and 67th regionally, while Union Bank ranked fourth locally and 69th in the Arab world.

The Jordan Islamic Bank was ranked fifth locally and 73rd regionally, while Jordan Kuwait Bank was sixth and 77th regionally. 

Cairo Amman Bank was ranked seventh locally and 83rd regionally and Jordan Ahli Bank came eighth locally and 90th regionally.

The study also revealed that the total core capital of the 100 strongest Arab banks reached $451.9 billion, with combined assets amounting to $4.2 trillion.

The UAE led the list with 18 banks, while 21 Arab Islamic banks were featured, including contributions from Qatar and Saudi Arabia (four each), Kuwait, the UAE, and Bahrain (three each), Egypt (two), and Jordan and Oman (one each).

 

'Finally, we made it!' — Ho Chi Minh City celebrates first metro

By - Dec 22,2024 - Last updated at Dec 22,2024

People are seen under the lotus-shaped skylight at Ben Thanh metro station in Ho Chi Minh City on Sunday (AFP photo)

HO CHI MINH CITY — Thousands of selfie-taking Ho Chi Minh City residents crammed into train carriages Sunday as the traffic-clogged business hub celebrated the opening of its first-ever metro line after years of delays.

Huge queues spilled out of every station along the $1.7 billion line that runs almost 20 kilometres (12 miles) from the city centre — with women in traditional "ao dai" dress, soldiers in uniform and couples clutching young children waiting excitedly to board.

"I know it (the project) is late, but I still feel so very honoured and proud to be among the first on this metro," said office worker Nguyen Nhu Huyen after snatching a selfie in her jam-packed train car.

"Our city is now on par with the other big cities of the world," she said.

It took 17 years for Vietnam's commercial capital to reach this point. The project, funded largely by Japanese government loans, was first approved in 2007 and slated to cost just $668 million.

When construction began in 2012, authorities promised the line would be up and running in just five years.

But as delays mounted, cars and motorbikes multiplied in the city of nine million people, making the metropolis hugely congested, increasingly polluted and time-consuming to navigate.

The metro "meets the growing travel needs of residents and contributes to reducing traffic congestion and environmental pollution", the city's deputy mayor Bui Xuan Cuong said.

Cuong admitted authorities had to overcome "countless hurdles" to get the project over the line.

'Frustrating' delays

According to state media reports, the metro was late because of "slow capital disbursement, unexpected technical problems, personnel difficulties and the COVID-19 pandemic".

"The delays and cost overruns have been frustrating," said professor Vu Minh Hoang at Fulbright University Vietnam, who warned that with just 14 station stops, the line's "impact in alleviating traffic will be limited in the short run".

However, it is still a "historic achievement for the city's urban development", he added.

With lessons learnt, "the construction of future lines will be increasingly easier, faster, and more cost-efficient", Hoang told AFP.

Back on the train, 84-year-old war veteran Vu Thanh told AFP he was happy to experience below ground in a more positive way after spending three years fighting American troops in the city's famous Cu Chi tunnels, an enormous underground network.

"It feels so different from the underground experience I had years ago during the war. It's so bright and nice here," he said.

Reflecting on the delays, he added: "We built the tunnels to hide from our enemies in the past, so building a tunnel for a train should not be that hard," he added.

"Finally, we made it!"

Weight-loss drugmaker Novo Nordisk's shares fall on disappointing study

Drugmaker has hold on 74% of market for weight-loss treatments

By - Dec 21,2024 - Last updated at Dec 21,2024

COPENHAGEN — Shares in Danish pharmaceutical giant Novo Nordisk, maker of diabetes and weight-loss treatments Ozempic and Wegovy, plunged on Friday after it announced disappointing results of a new drug study.

The drugmaker said clinical trials had demonstrated that overweight subjects using the weight-loss drug Cagrisema had lost an average of 22.7 per cent of their weight over the 68-week trial, compared to 2.3 per cent for those using a placebo.

The result fell short of the 25 per cent Novo Nordisk had expected for the drug, sending shares down over 22 per cent following the announcement.

The trial included 3,417 overweight or obese people with one or more comorbidities.

Martin Holst Lange, executive vice president for development at Novo Nordisk, said in a statement that the company was "encouraged"

 by the results.

He added that with the insights from the trial, "we plan to further explore the additional weight loss potential of Cagrisema".

In November, the drugmaker posted a 21-per cent rise in net profit to 27.3 billion kroner ($3.85 billion) for the July-to-September period, but lamented capacity limitations at its production sites.

Sales of Wegovy, which has been approved for use to treat obesity in Britain, Denmark, France, Germany, Norway and the United States, rose by 42 per cent in the first nine months of the year.

Sales of Ozempic — an injectable anti-diabetic treatment which has become popular for its slimming properties — soared by 54 per cent in the same period.

Novo Nordisk has a hold on 74 per cent of the market for weight-loss treatments.

The World Obesity Federation predicts that by 2035, over half of the world's population will be overweight or obese and the global economic impact could then exceed $4 trillion a year.

EU chief in Bern to reset ties with Switzerland

By - Dec 21,2024 - Last updated at Dec 21,2024

Swiss President Viola Amherd shakes hands with European Commission President Ursula von der Leyen after a statement in Bern on Friday (AFP photo)

BERN, Switzerland — European Commission president Ursula von der Leyen visited the Swiss capital recently to seal a new set of agreements aimed at stabilising the country's ties with the bloc after disagreements over freedom of movement across Switzerland's borders.

Switzerland was set to announce it has concluded the package deal with the European Union which would recalibrate relations with the surrounding bloc.

However, the government's green light, after years of sometimes hostile negotiations, is just the first step on the road to refreshing relations between the wealthy Alpine nation and its biggest trading partner.

The Swiss parliament will also have its say — with the hard-right Swiss People's Party (SVP), the country's biggest party, fiercely opposed to any rapprochement with the EU — and the public will likely have the final word in a referendum.

A sticking point in the talks — which has now reportedly been resolved — had been Switzerland's stubborn efforts to secure an exemption to the EU's cherished free movement of people between countries.

On Friday, SVP lawmakers stood outside the parliament in Bern holding up candles in what they called a vigil "for our independence and democracy", in opposition to the "package of lies" in the "EU submission treaty".

It said Switzerland would be forced to pay hundreds of millions of francs to the "crisis-ridden EU", saying the government's "logic is simply perverse: it is handing us Swiss over to the EU — and we are supposed to pay for it!"

SVP president Marcel Dettling said they were "fighting for the self-determination of the Swiss people".

'Delicate balance'

"President Von der Leyen is meeting with the president of Switzerland, Viola Amherd, in Bern," a European Commission spokesperson said Friday, adding that they would host a joint press conference at 1315 GMT.

Bern and Brussels are seeking to simplify and harmonise their ties, which are currently governed by a tangle of more than 120 separate agreements.

Relations plunged when Switzerland, suddenly and without warning, slammed the door on the negotiations in 2021.

The talks tentatively resumed in March, with the goal of concluding a deal by the end of the year.

Unlike previous attempts to seal an overarching framework agreement, the current negotiations have sought to update the existing agreements and conclude new ones on issues like electricity, health and food safety.

In recent days, Swiss media cited diplomatic sources saying that all the issues had been agreed, with the exception of how much Switzerland should pay into the EU's Cohesion Fund, which is aimed at reducing economic and social disparities in the bloc.

A fresh round of discussions on Tuesday "took place in a very positive atmosphere", a European diplomatic source said.

"We believe we have reached what is a very delicate balance, and should be appreciated as such by all parties."

The road to this point has been long: around 200 negotiation meetings have taken place.

Separate slices

Fearing it could be tough to win over voters, Bern last week reportedly changed its strategy, and cut the package of agreements into four separate "slices", according to Swiss public broadcaster SRF.

Each slice could then be put to a referendum separately, reportedly in the hope that it would be easier to win support on each narrow set of issues than on a broad package.

The Swiss Trade Union Federation has already called for further negotiations, warning that the agreement as it currently stands risks hitting Swiss wages.

Unions have also voiced concern at the potential impacts on Switzerland's rail and electricity sectors.

The Swiss business federation Economiesuisse supports an agreement.

It said a deal would "enable Switzerland to maintain the current conditions, allowing its economy to access the European market, and to develop them in important areas".

BoE holds interest rate after inflation rise

By - Dec 19,2024 - Last updated at Dec 19,2024

The Bank of England, Britain's central Bank, is pictured in London on Thursday (AFP photo)

LONDON — The Bank of England (BoE) on Thursday kept its key interest rate at 4.75 per cent, deciding against a cut in line with the US Federal Reserve (Fed), as UK inflation rises again. 

"We've held interest rates today following the two cuts since the summer," BoE Governor Andrew Bailey said in a statement. 

"We need to make sure we meet the 2 per cent inflation target on a sustained basis," he added following a regular policy meeting and after official data this week showed UK annual inflation rising to 2.6 per cent. 

The expected rate decision came a day after the Fed cut US borrowing costs by a quarter-point but signalled fewer reductions for next year. 

The European Central Bank cut eurozone rates last week while the Bank of Japan made no change in a decision announced Thursday. 

Britain's finance minister Rachel Reeves said she supported the latest BoE call despite the pressure that it puts on Britons. 

Had the BoE cut its rate, retail banks would likely have followed suit by reducing borrowing costs on mortgages. 

"I know families are still struggling with high costs," Reeves said Thursday. 

"We want to put more money in the pockets of working people, but that is only possible if inflation is stable and I fully back the Bank of England to achieve that." 

Bailey joined five other policymakers in voting for no change, while the remaining three called for a cut of 0.25 per centage points as they highlighted "sluggish demand and a weakening labour market". 

"The Bank of England is ringing in the same discordant notes of caution as the Federal Reserve," noted Susannah Streeter head of money and markets at Hargreaves Lansdown. 

"The Fed's guidance yesterday of just two further interest rate cuts next year sparked nervousness... and the Bank's decision has done little to provide much cheer." 

Global stock markets retreated following the Fed's update, while reaction to the BoE's action was muted. 

Britain's Consumer Prices Index reached 2.6 per cent in the 12 months to November, up from 2.3 per cent for October, data showed Wednesday. 

CPI had struck a three-year low of 1.7 per cent in September before higher energy bills pushed it back above the BoE's inflation target. 

November's additional inflation rise is a further blow to the Labour government, which has found efforts to grow the economy come unstuck since winning power in July. 

The BoE reduced its key interest rate in August for the first time since early 2020, from a 16-year high of 5.25 per cent as UK inflation returned to normal levels. 

It cut further last month, while analysts on Thursday forecast that the next reduction will occur in February. 

Major central banks started this year to cut interest rates that had been hiked in efforts to tame inflation. 

UK inflation had soared to above 11 per cent in October 2022, the highest level in more than four decades, as the Russia-Ukraine war cut energy and food supplies, sending prices soaring. 

Companies faced supply constraints also as they struggled to return to the pre-COVID rhythm of working. 

Japanese carmakers Honda, Nissan in preliminary merger talks — reports

By - Dec 18,2024 - Last updated at Dec 18,2024

The emblem of Japanese automaker Nissan Motor is seen at a showroom in Yokohama on May 9, 2024 (AFP photo)

TOKYO — Japanese auto giants Honda and Nissan are in preliminary merger talks to help them compete against Tesla and Chinese electric vehicle makers, media reports said Wednesday.

Shares in Nissan soared as much as 24 per cent, while Honda dipped more three per cent. Mitsubishi Motors — of which Nissan is the top shareholder — gained almost 20 per cent.

Japan's number two and three automakers behind Toyota had already agreed in March to explore a strategic partnership on EVs.

"We are discussing possibilities for cooperation... in a wide range of fields and in various areas, and those possibilities include the latest reports, but there is nothing decided," a Honda spokesman told AFP on Wednesday.

Nissan said: "The content of the report is not something that has been announced by either company... If there are any updates, we will inform our stakeholders at the appropriate time."

Major automakers the world over have been reeling from tough competition in EVs, in particular from Chinese competitors such as BYD.

Volkswagen, for instance, is considering closing German factories for the first time in its history.

Last month, Nissan announced 9,000 job cuts, slashed its sales forecasts and said it would reduce global production capacity by 20 per cent.

Warning of a "severe situation", CEO Makoto Uchida said he would forfeit half his salary.

Nissan has seen a turbulent decade that included an attempted major alliance with France's Renault that saw its former boss Carlos Ghosn arrested in 2018.

In Paris, shares in Renault, which owns a significant stake in Nissan, soared more than six per cent on Wednesday.

Electric race 

Bloomberg reported that an approach by Taiwan's Foxconn — officially known as Hon Hai Precision Industry — to take a controlling stake in Nissan accelerated discussions with Honda.

Foxconn, the world's largest contract electronics manufacturer including for Apple, was not immediately available for comment.

Honda and Nissan are considering operating under a holding company and will soon sign a memorandum of understanding, the Nikkei reported.

Their respective stakes, as well as other details, will be decided later, and they also look to eventually bring Mitsubishi Motors under the holding company, the paper said.

The Financial Times reported that the exploratory talks about a merger were at an early stage.

There are, however, concerns about a possible political backlash since a merger could result in significant job cuts, the FT reported.

Japanese television channel TBS reported that the companies could make an announcement as early as Monday.

 

Honda is considering several options including a merger, capital tie-up or the establishment of a holding company, executive vice president Shinji Aoyama told Bloomberg.

Overtaken

China overtook Japan as the world's biggest vehicle exporter in 2023, helped by its dominance in EVs, a sector where Japanese firms have lost ground by focusing on hybrid vehicles.

Honda announced plans in May to double investment in electric vehicles to $65 billion by 2030, part of its ambitious target set three years ago of achieving 100 per cent EV sales by 2040.

Nissan has signalled similar ambitions.

It said in March that 16 of the 30 new models it plans to launch over the next three years would be "electrified".

The world's auto giants are increasingly prioritising electric and hybrid vehicles, with demand growing for less polluting models as concern about climate change grows.

At the same time, however, there has been a slowdown in the EV market on the back of consumer concern about high prices, reliability, range and a lack of charging points.

"From Nissan's perspective, the possible merger would provide short-term relief for Nissan, which is under significant financial pressure," Tatsuo Yoshida, Bloomberg Intelligence analyst, told AFP.

"From Honda's perspective, Honda is performing better financially, the benefits for Honda would be more long-term," Yoshida said, adding, however, that agreeing on a deal would be "very difficult".

 

Global stocks mostly fall, bitcoin soars to new peak

By - Dec 17,2024 - Last updated at Dec 17,2024

This illustration photograph shows a Bitcoin cryptocurrency coin picture displayed on a smartphone beside a screen showing a trading chart in Brussels on Tuesday (AFP photo)

NEW YORK — Global shares mostly retreated Monday as markets awaited a Federal Reserve interest rate decision while concerns over political battles in Europe and China's struggling economy pressured equities.

The Nasdaq was the day's outperformer, surging more than one per cent to a fresh all-time high behind big gains for Broadcom, Google-parent Alphabet and other tech names.

But the Dow fell, along with bourses in Europe and Asia as traders fretted over political instability in France and Germany.

Bitcoin, meanwhile, hit a new record high, reaching $107,115.89 as it continues to gain support from Donald Trump's backing of cryptocurrencies.

Investors are turning their attention to Wednesday's US Federal Reserve decision on borrowing costs at its last policy meeting of the year before Trump takes office next month.

The Fed is widely expected to cut its key lending rate for a third straight time, reducing it by a quarter point despite a recent uptick in inflation.

But there are fears it will have to slow its pace of easing next year owing to sticky inflation and bets that Trump's tax cuts and tariffs will reignite price increases.

Kathleen Brooks, research director at trading platform XTB, said that there would be "an elephant in the room" at the Fed meeting.

"How to accurately forecast economic activity and inflation rates, when the President-elect's policies are expected to have a huge economic impact and could trigger more inflation?" she wrote.

China and Europe worries 

Investors also tracked data showing that Chinese retail sales grew 3.0 per cent last month, much slower than in October and well off the five per cent forecast.

Hong Kong and Shanghai stock markets closed lower after the data release while oil prices fell slightly on concerns over Chinese demand.

Chinese officials have unveiled a string of aggressive measures in recent months aimed at bolstering growth in the world's second-biggest economy.

In Europe, the Paris stock market fell 0.7 per cent after Moody's downgraded France's credit rating Saturday following months of political crisis and the appointment of centrist Francois Bayrou as prime minister.

"The market is likely to watch closely to see how the political problems in France affect sentiment in the German economy," said Jochen Stanzl, an analyst at CMC Markets.

Frankfurt slid 0.5 per cent as Germany's embattled center-left Chancellor Olaf Scholz lost a confidence vote, triggering elections set for February 23.

The European Central Bank cut rates again last week as inflation appears to come under control and the eurozone economy shows signs of weakness.

ECB chief Christine Lagarde said Monday that the bank would keep lowering interest rates, while warning that higher US tariffs under Trump could hit growth in the bloc.

A closely watched survey released Monday showed that business activity declined further in the eurozone in December, though less sharply than the previous month thanks to an upturn in the services sector.

 

China's retail sales weaken, miss forecasts in November

By - Dec 16,2024 - Last updated at Dec 16,2024

BEIJING — China's retail sales growth weakened last month, official data showed on Monday, missing forecasts as demand remains muted in the world's number two economy.

The country is battling sluggish domestic consumption, a persistent crisis in the property sector and soaring government debt — all of which threaten Beijing's official growth target for this year.

Retail sales expanded three per cent year-on-year in November, the National Bureau of Statistics (NBS) said, slowing from a 4.8 per cent rise in October that was its best reading in eight months.

The figure fell significantly short of the 5.0 per cent forecast in a Bloomberg survey of analysts.

The NBS also said the national urban unemployment rate remained unchanged at five per cent in November.

Industrial production growth stayed broadly flat at 5.4 per cent compared with 5.3 per cent in October.

Beijing has unveiled a string of aggressive measures in recent months aimed at bolstering growth, including cutting interest rates, cancelling restrictions on homebuying and easing the debt burden on local governments.

But economists have warned that more direct fiscal stimulus aimed at shoring up domestic consumption is needed to restore full health in China's economy, which has struggled to fully recover since the COVID-19 pandemic.

Beijing is pushing for an official national growth target this year of around five per cent, a goal officials have expressed confidence in achieving but which many economists believe it will narrowly miss.

The International Monetary Fund expects China's economy to grow by 4.8 per cent this year and 4.5 per cent next year.

UK's Starmer to push green energy ties on Norway trip

By - Dec 16,2024 - Last updated at Dec 16,2024

A general view of the Northern Lights Carbon Capture and Storage facilities, during a visit of the British Prime Minister to discuss climate, energy and defense cooperation in Bergen, Norway, on Monday (AFP photo)

LONDON — British Prime Minister Keir Starmer will visit Norway on Monday where he is expected to tout a "green industrial partnership" on renewable energy and carbon capture to tackle climate change.

It comes as Starmer's new Labour government seeks ways to meet its commitments to completely decarbonise the UK's electricity production by 2030, reduce emissions by at least 81 per cent compared to 1990 levels by 2034 and become carbon-neutral by 2050.

To be formally signed in the spring, the agreement with Oslo would help Britain "seize the opportunities from a new era of clean energy, driving investment into the UK and boosting jobs both now and in the future", Starmer was cited as saying in a statement from his office.

Precise details of the partnership's contents were not made available ahead of Starmer's meeting with his Norwegian counterpart Jonas Gahr Store.

At the beginning of October, the Labour government announced 22 billion pounds ($28 billion) in investment over 25 years to develop carbon capture and storage on two former industrial estates in the north of England.

Carbon capture, utilisation and storage is a technology that seeks to eliminate emissions created by burning fuels for energy and from industrial processes.

The carbon is captured and then stored permanently in various underground environments.

"Our partnership with Norway will make the UK more energy secure, ensuring we are never again exposed to international energy price spikes …," said Starmer.

Quoted in the Downing Street release, Norway's Prime Minister Store hailed the agreement as "important to facilitate more green jobs both in Norway and the UK, and for advancing the green transition".

The two North Sea countries already have extensive energy ties, with Norway being one of the UK's main suppliers of gas.

Several Norwegian companies already have a strong presence in the British market.

Norwegian energy giant Equinor has partnered with BP in a number of carbon capture and storage projects in the UK, while Vagronn is also involved in a floating wind farm project in Scotland.

The UK's ambition to become "a world-leader in carbon capture" comes despite doubts over the technology's effectiveness at tackling global warming given the costs and complexity involved.

It has however been advocated by the UN's Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA), especially for reducing the CO2 footprint of difficult to decarbonise industries like cement and steel.

Founder of Spain's Mango clothing chain dies in accident

By - Dec 15,2024 - Last updated at Dec 15,2024

Madrid — Isak Andic, the founder of Spanish clothing retailer Mango, one of Europe's largest fashion groups, with nearly 2,800 stores worldwide, died Saturday in an accident, the company said.

While the company did not provide further details, Spanish media reports said the 71-year-old died after falling while hiking with several members of his family near Barcelona.

"It is with deep regret that we announce the unexpected death of Isak Andic, our non-executive chairman and founder of Mango," the Barcelona-based company's CEO, Toni Ruiz, said in a statement.

"Isak has been an example for all of us. He dedicated his life to Mango, leaving an indelible mark thanks to his strategic vision, his inspiring leadership and his unwavering commitment to values that he himself imbued in our company," he added.

Born in 1953 in Istanbul, Andic moved to Barcelona in Spain's wealthy northeastern Catalonia region with his family when he was 14.

He opened his first shop on the Paseo de Gracia, Barcelona's famous shopping street in 1984 with the help of his older brother Nahman. It was hugely successful.

Spain had just emerged from a decades-long dictatorship that ended with the death of General Francisco Franco in 1975, and consumers were hungry for more modern clothes.

"He saw that we needed colour, style," the company's global retail director, Cesar de Vicente, said in an interview with AFP in March 2024.

Andic quickly opened dozens of more stores in Spain and then abroad, starting in neighbouring Portugal and France, all under the name Mango.

The company has consolidated its position as one of the leading international fashion groups, with a major presence in more than 120 markets and 15,500 employees worldwide, according to its website. The company closed 2023 with a turnover of 3.1 billion euros.

'Committed businessman'

Like its main domestic rival Inditex, the world's biggest fashion retailer and owner of the popular Zara brand, Mango strives to quickly adjust its production to the latest fashion trends while offering affordable prices.

Mango has just a single brand and it does not own any factory, outsourcing its production mainly to lower-cost Turkey and Asia.

Andic "realised that having the same name, having the same brand in all the shops, would make the concept much stronger", said De Vicente.

The media-shy entrepreneur was one of Spain's richest men. Forbes estimates he and his family have a net worth of $4.5 billion

"His legacy reflects the achievements of a business project marked by success, and also by his human quality, his proximity and the care and affection that he always had and at all times conveyed to the entire organisation," Ruiz said, adding "his departure leaves a huge void".

The head of the regional government of Catalonia, Salvador Illa, hailed Andic as "a committed businessman who, with his leadership, has contributed to making Catalonia great and projecting it to the world.

"He leaves an indelible mark on the Catalan and global fashion sector," he added in a post of social network X, offering his condolences.

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