Business

MELBOURNE — Jeering Qantas shareholders voted down a pay package for the company's top brass recently, as the outgoing chairman apologised for a public "loss of trust" in Australia's much-loved carrier.

At a fractious annual meeting in Melbourne, 83 per cent of shareholders voted against a package that would have gifted key executives millions of dollars in bonuses.

The 102-year-old airline enjoyed a record profit last year.

But it also enraged once-loyal Australians through astronomical ticket prices and allegedly selling seats for 8,000 already cancelled flights.

This came after taking a multibillion-dollar taxpayer bailout during the pandemic.

Chairman Richard Goyder, who is slated to retire next year, said the board had heard the "strong" message sent by shareholders.

"There are things we got wrong, things we should have handled better" Goyder admitted, "things we should have fixed faster, and for that we apologise". 

Qantas was long seen as the "spirit of Australia" — the island nation's link to the rest of the world.

Although not state-run, it is seen as an integral part of the economy and vital to cohesion in a country where major cities are hundreds of kilometres apart.

So far, Qantas' attempts to salvage its reputation have fallen flat.

It has defended selling seats on cancelled flights, arguing that rather than buying tickets for specific flights, customers buy a "bundle of rights" and a promise that the airline will "do its best to get consumers where they want to be on time".

In September Australia's high court ruled Qantas illegally sacked 1,700 ground staff during COVID-19 lockdowns.

Despite vowing to "restore confidence" Goyder faced angry heckles from shareholders as he tried to shut down complaints from one angry investor.

The Qantas chairman asked for the man's microphone to be cut off, prompting boos, jeers and cries of "shame on you" from other shareholders in the room.

SAN FRANCISCO — Apple recently reported that sales fell for the fourth consecutive quarter when compared to the prior year, but profit rose on the back iPhones and services.

The tech giant said it made a profit of $23 billion on revenue of $89.5 billion, which was down slightly from the same period last year.

Apple chief executive Tim Cook said iPhone sales set a new record for its September quarter while money taken in from services hit an all-time high.

The company brought in $43.8 billion from iPhone sales while its services unit selling products such as Apple Music and iCloud brought in $22.3 billion, up 16 per cent from a year ago.

"We now have our strongest lineup of products ever heading into the holiday season, including the iPhone 15 lineup," Cook said in an earnings release.

The iPhone performance came as sales of smartphones continued to shrink globally in the recently-ended quarter as consumers watched spending, according to market tracker Counterpoint.

Smartphone sales fell 8 per cent, marking the ninth consecutive quarter of decline in year-over-year comparisons, according to research by Counterpoint's Market Pulse service.

Apple's strong September sales along with buzz around the new iPhone 15 line-up were signs the current quarter may break the losing trend, according to the market tracker.

The company said that the supply of premium versions of the iPhone 15 would be constrained until the end of the year, putting a brake on sales

"We're working very hard to get the product in the hands of all the customers that have ordered it," said Apple CFO Luca Maestri.

Cook said that Apple continued to face "an uneven macro-economic environment" in the quarter, including pressure from currency exchange rates.

"We've adapted continuously to circumstances beyond our control, while being thoughtful and deliberate on spending."

Sales of computers, tablets and connected accessories all fell year-on-year. 

Apple's Macs suffered in particular with sales plummeting by half, to $7.6 billion for the quarter, though this was partly due to a post-COVID sales burst a year ago.

"We have great confidence in our Mac lineup and are excited about the recently announced iMac and MacBook Pro, powered by our M3 chips," Maestri said.

The number of Mac users is at an all-time high, and half of the people buying models during the recently ended quarter were new to Apple's line of computers, according to Maestri.

Apple unveiled its latest iPhone lineup in September, with its Lightning charger ports replaced on the newest models by a universal charger after a tussle with the European Union.

China factor 

The firm said sales in China slipped, but Cook added this was due to foreign exchange factors.

"Underneath that if you look at the different the categories, iPhone actually set a September quarter record in mainland China," he said.

Since the US tech giant first established a presence in China in 1993, Apple has grown into a major provider of smartphones, laptops and consumer electronics in the country.

During an earlier visit in March to Beijing, Cook said his company enjoyed a "symbiotic" relationship with China.

The country remains the company's main manufacturing hub, despite diplomatic turbulence between Washington and Beijing as well as talk of pivoting more production to India.

Apple shares fell more than 3 per cent to $171 in after-market trades that followed release of the earnings figures.

AMMAN — Mazen Wathaifi, chief executive officer of Amman Stock Exchange (ASE), said that 97 per cent out of 168 listed companies have provided the ASE with their reviewed quarterly financial statements for the period ended September 30 during the specified period, through the e- disclosure System XBRL. 

This high percentage reflects the compliance of listed companies with the laws and regulations, and the compliance of such companies with the principles of transparency and disclosure, according to the website of ASE. 

Wathaifi added that all listed companies on the ASE should provide their reviewed interim financial statements within the specified period, according to the directives for listing securities on the ASE. He also confirmed that the ASE posts these financial statements on the ASE website www.exchange.jo under circulars and disclosures/quarterly reports window.

Wathaifi stated that profits after tax attributable to the company's shareholders for the three quarters of 2023 for the public shareholding companies listed on the ASE that provided their financial statements decreased to reach JD1641.2 million, compared with JD1991.8 million for the same period of 2022, a decrease of 17.6 per cent. 

Profits before tax for these companies also decreased, reaching JD2311.4 million for the three quarters of 2023, compared with JD2705.5 million for the same period of 2022, a decrease of 14.6 per cent.

In terms of sectors, profits after tax attributable to the company's shareholders for the financial sector of companies that provided the ASE with their financial statement increased by 32.9 per cent, the services sector decreased by 24.2 per cent and the industrial sector decreased by 47.3 per cent, the website stated.

He added that the decline in these percentages is relative since the comparison is made with many listed companies achieving record and unprecedented profits in 2022. The profits achieved for this period in 2023 are high compared with previous years, considering the financial and monetary stability and the improvement in many national economic performance indicators. 

He also pointed out that the number of profitable companies for the first three quarters of this year has increased to 112 companies compared with 106 companies in 2022. The number of companies that incurred losses has decreased to 51 companies compared with 57 companies in 2022. 

Additionally, a number of subsectors have seen increases, with the engineering and construction industries, the hotel and tourism, the real estate, the diversified financial services, the electrical industries, the insurance, the bank sector, and the chemical industries sector recording increases of 410.7 per cent, 392 per cent, 179.3 per cent, 159 per cent, 83.4 per cent, 48.5 per cent, 30.8 per cent and 3.7 per cent respectively.

DHAKA — Thousands of Bangladeshi garment workers barricaded roads in Dhaka on Wednesday demanding fair wages for clothing they make for major Western brands, with at least two killed during days of protests.

Sabina Begum, a 22-year-old seamstress, said she joined the protests because she was "struggling to ensure bread and butter" for her family, saying the monthly minimum wage of 8,300 taka ($75) did not cover basic needs.

"How can we spend a month with 8,300 taka when we need to spend 5,000-6,000 taka alone for the rent of a one-bedroom house?" Begum told AFP.

The garment worker protests come as Bangladesh also reels from separate anti-government demonstrations, with opposition party supporters demanding Prime Minister Sheikh Hasina step down ahead of elections due by the end of January.

Bangladesh's 3,500 garment factories account for around 85 per cent of the South Asian country's $55 billion exports, but conditions are dire for many of its four million apparel workers.

Major Western companies including Adidas, Gap, H&M and Levi Strauss purchase goods from Bangladesh manufacturers.

Bangladesh's powerful manufacturers' association has offered workers a 25 per cent pay raise, ignoring demands for a nearly threefold increase to the basic salary.

Police said at least 5,000 garment workers, demanding a monthly minimum wage of 23,000 taka ($208), set up roadblocks in the capital Dhaka.

An AFP correspondent at the protests said the number of workers could be significantly higher.

Assistant Commissioner of Dhaka Metropolitan Police Omar Faruq said no violence had been reported on Wednesday in the city.

However, a crowd of around 1,500 protesters hurled rocks at multiple factories in the industrial city of Gazipur, regional head of the industrial police unit Sarwar Alam told AFP.

"We fired tear gas and sound grenades to disperse the protesters," he said.

'Hunger and injustice' 

Garment worker Nurul Islam, 25, accused supporters of the ruling party of attacking the protesters.

"We want justice, we want a sufficient wage," Islam said.

Police could not confirm any such attack but the Prothom Alo newspaper quoted witnesses reporting that a ruling party activist had fired a gun.

"The ruling party men attacked our people yesterday," Islam said. "The owners don't want to raise our wages. Should we die of hunger and injustice?"

Protests began last week but violence escalated on Monday when tens of thousands left their shifts and staged protests in Gazipur, where a six-storey factory was torched by workers, leading to the death of one labourer.

Another worker was killed during clashes between police and protesters.

The Clean Clothes Campaign group, a global network supporting workers' rights, said it "strongly condemns the violent repression" of the garment protesters.

It also said "brands sourcing from Bangladesh have an undeniable role in the recent developments", and that "most refused" to publicly back the unions' demand for higher wages.

On Sunday, police charged opposition Bangladesh Nationalist Party (BNP) leader Mirza Fakhrul Islam Alamgir and more than 150 other top party members with the murder of a policeman during the anti-government demonstrations.

The violence has sparked international concern, with seven nations including the United States, Australia, Britain, Canada and Japan urging all sides to "exercise restraint, eschew violence and work together" for a free and fair vote.

The country of nearly 170 million people has overtaken neighbouring India in per capita income, with the garment industry at the centre of its impressive growth over the past two decades.

Hasina's government set up a panel this year to set a new minimum wage.

Unions say that garment factory owners — who include ministers and influential lawmakers — have played a role in fixing the minimum wage during past negotiations.

Faruque Hassan, the president of the Bangladesh Garment Manufacturers and Exporters Association, said on Tuesday they would raise minimum wages from next month but without specifying by how much.

BRUSSELS — Economic growth in the eurozone contracted in the third quarter, data showed on Tuesday, hit by the European Central Bank's (ECB's) painful rate-hiking campaign and Germany's weakening economy, but inflation slowed in October.

The EU's official data agency said the 20-country single currency zone's economy shrank by 0.1 per cent over the July-September period, after recording only 0.2 per cent growth in the second quarter. 

The figures reflect the difficulties facing the eurozone including the cost-of-living crisis and concerns over the flagging demand in the global economy.

Although the eurozone has weathered the shocks from the coronavirus pandemic and the war in Ukraine, fears are growing over the economic effects of the Israel-Hamas war.

The data published by Eurostat on Tuesday showed, however, the whole 27-country European Union economy — including members who do not use the euro — fared better, growing by 0.1 per cent in the quarter.

Germany's economy shrank by 0.1 per cent in the third quarter, while Austria also recorded a contraction of 0.6 per cent.

France, the EU's second biggest economic powerhouse, only grew by 0.1 per cent, and Italy's economy stagnated in the third quarter, the data showed.

Germany has been hit hard by elevated energy costs, a sluggish manufacturing sector and high interest rates designed to tame inflation.

Consumer price inflation in the eurozone has slowed to 2.9 per cent, Eurostat data for October showed Tuesday, the lowest rate since July 2021 when it reached 2.2 per cent.

The figure is down from 4.3 per cent in September and lower than predicted by analysts who had expected inflation to remain above 3 per cent.

The inflation rate is also now closer to the ECB's 2 per cent target. Despite higher borrowing costs, the ECB remains steadfast behind its mission to tame red-hot inflation.

But signs of weakness in the economy as well as ebbing price pressures prompted the ECB to leave interest rates unchanged earlier this month after raising them in each of their previous 10 meetings.

"Continued deflation in energy prices and easing food price inflation were the main drivers," Tomas Dvorak, senior economist at Oxford Economics said, adding that he expected inflation to "dip below target" in 2024.

"We think the ECB will start with rate cuts already" as early as in April, he added.

Inflation slows 

Eurozone inflation is down from its peak of 10.6 per cent in October last year following Russia's invasion of Ukraine which sent energy prices spiralling.

Core inflation, which strips out volatile energy, food, alcohol and tobacco prices, also slowed to 4.2 per cent in October from 4.5 per cent in September, Eurostat said.

Core inflation is the key signal for the ECB.

Belgium and The Netherlands was the only countries where consumer prices fell, by 1.7 per cent and 1 per cent respectively in October, according to Eurostat figures.

Energy prices in the eurozone fell much further in October, sinking by 11.1 per cent on the back of a drop of 4.6 per cent the previous month.

The rise in food and drink prices also slowed down, reaching 7.5 per cent in October compared with 8.8 per cent in September, according to Eurostat.

ABU DHABI — Upcoming UN climate talks in Dubai will be open to the private sector on an unprecedented scale, the conference's chief said on Monday, calling it a chance to "reimagine entire economies".

Sultan Al Jaber, the COP28 president and head of state-owned oil giant ADNOC, was speaking at the start of preliminary discussions in Abu Dhabi where ministers will grapple with key climate issues.

"Inclusivity is a defining principle of COP28. That includes being open to the private sector on a scale we have never seen before," Jaber said in the UAE's capital.

Jaber has consistently tried to frame the climate crisis as an economic opportunity. He said about 70 ministers and 100 delegations are attending the two-day talks, more than double the usual number.

"Decision-makers in finance will be with us. Key figures in tech will be with us. Leaders across every significant industrial sector of the global economy will be with us," he said.

The future of fossil fuels is likely to be the biggest source of contention at the November 30-December 12 COP28 summit, along with providing help for poorer nations to cope with the effects of climate change.

"I know there are strong views about the idea of including language on fossil fuels and renewables in the negotiated text," Jaber said, without elaborating.

"We also need to transform international financial institutions, build carbon markets and incentivise private investment to turn billions into trillions," he added.

World leaders meeting in Dubai, the United Arab Emirate's commercial hub, for COP28 will also have to respond to a damning progress report on the world's commitments under the Paris Agreement.

The 2015 deal aims to limit global warming to well below two degrees Celsius since the pre-industrial era, and preferably a safer 1.5ºC.

"COP28 must deliver a robust global stocktake with a strong mitigation outcome, a comprehensive adaptation agreement, and groundbreaking solutions on finance," Jaber said.

He added that "more than 20" oil and gas companies had responded to an appeal from COP28 to end methane emissions by 2030.

"And we are engaging with all high-emitting sectors — like heavy transportation, aluminium, steel and cement — to lay out credible decarbonisation plans," Jaber said.

COP28 is taking place as resource-rich Gulf countries including Saudi Arabia, the world's biggest oil exporter, are trying to reduce their economies' reliance on fossil fuels.

AMMAN — Arab Bank Group delivered strong financial performance in the first nine months of this year, reporting net income after tax of $630.3 million compared with $405.8 million for the same period last year with an increase of 55 per cent.

The group maintained its strong capital base with a total equity of $10.8 billion. Loans grew to $36.3 billion and deposits reached $49 billion. Excluding the impact of devaluation of several currencies against the US dollar, loans and deposits grew by 4 per cent and 5 per cent respectively, according to a statement by the Arab Bank Group.

Sabih Masri, chairman of the Board of Directors, stated that the results underscore the bank’s success in pursuing its growth strategy, despite the challenging environment. 

Randa Sadik, chief executive officer, said that the bank succeeded in delivering continued growth through its operating entities and across different segments. This is in line with the bank’s objective to achieve sustainable results across all business lines. Sadik added that the group continues to benefit from the diversified business model and its prudent risk strategy with key indicators remaining strong where loan-to-deposit ratio stood at 74 per cent, and credit provisions held against non-performing loans continue to exceed 100 per cent, and capital adequacy ratio of 16.9 per cent.

It is worth noting that Arab Bank announced recently the successful issuance of its $250 million in Additional Tier 1 Capital Securities with a fixed coupon of 8 per cent. The issuance was through a private placement and was listed on the International Securities Market and the Sustainable Bond Market of the London Stock Exchange. The bond’s proceeds will be used to finance a portfolio of qualified sustainable projects.