Business

BEIJING — Apple megafans flocked to Beijing's swish flagship store on Friday as the tech giant kicked off its fourth decade in gadget-mad China — even as it looks to shift some production out of the country.

The California-based company held a series of events in Beijing at the first retail store it ever opened in China to mark the milestone of 30 years in the key consumer market.

Enthusiasts gathered at the sleek showroom in the commercial Sanlitun district to soak up the event, which featured an appearance by renowned Chinese record producer Zhang Yadong and several short films shot and edited entirely on Apple products.

"I'm an old Apple fan," said 17-year-old high school student Hu Jiarong in front of the Beijing store.

"You could say I'm a hardcore fan. I've used iPhones since the 6s all along until the 14 Pro," he added.

"I feel that each new generation is stronger than the last."

Since the US-based 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.

But last year, sales were hit by curtailed production at factories as a result of China's zero-COVID policy.

And US export controls on high-tech components are also threatening the company's supply chain.

Despite the developments, the firm still enjoys a strong base of loyal consumers in China.

Twenty-two-year-old university student Vicky Zhang told AFP outside the store that she has been using Apple's iPhones since she was in middle school.

"It's very comfortable to use, the packaging is very simple, and there aren't any messy and chaotic icons," said Zhang.

Asked if Apple's relocating of production outside of China would impact her future smartphone purchasing decisions, Zhang said: "I don't think so.

"I think it's just the trend, and not a loss of points from my perspective."

In March, Apple CEO Tim Cook visited Beijing, saying his company enjoyed a "symbiotic" relationship with China.

"For 30 years, we've been proud to serve local people," Cook said in an online statement on Friday congratulating the firm on the anniversary.

"We'll continue to do our part in enriching the lives of Chinese customers, helping them reach their full potential, and trying our hardest to make the world a better place."

GENEVA — Doctors Without Borders (MSF) said on Thursday a deal aimed to bring long-term preventative HIV treatment to vulnerable populations was on hold after the drug maker imposed pricing confidentiality.

In a statement, MSF called on ViiV Healthcare, to withdraw unacceptable conditions suddenly added to a long-negotiated purchase agreement for the preventative HIV drug cabotegravir long-acting (CAB-LA).

These conditions, including a confidentiality clause on the drug's price and supply terms, "are not acceptable in MSF purchase agreements", the statement said.

MSF warned that the new conditions were holding up its procurement of the drug, which it said was the most effective form of HIV prevention available today.

ViiV Healthcare is a subsidiary of British pharmaceutical giant GSK.

A spokesperson for Viiv said: "We share MSF's ambition to enable access to cabotegravir LA for PrEP.

"We remain committed to supporting our partners, and we're currently working closely on contract negotiations with MSF to enable access to cabotegravir LA for PrEP as quickly as possible."

MSF said it had been negotiating the deal since early 2022, with the aim to first bring the highly effective drug, given as an injection every eight weeks instead of as daily pills, to vulnerable populations in Mozambique.

But a few months ago ViiV had suddenly added the confidentiality clause, it said.

It had also announced it retained the power to terminate the contract or refuse the purchase order without just reasons, in what MSF said undermined supply security. 

MSF is "stuck in an infuriating situation", Helen Bygrave with the MSF Access Campaign said in the statement.

"There's a lifesaving HIV prevention drug at our fingertips, but ViiV, the only corporation producing CAB-LA for at least the next three to four years, is deliberately putting up red tape to delay access for people in our care."

'Stop stalling' 

In May last year, the Health Gap civil society group alleged that ViiV had set an access price for CAB-LA at $23,000 per person per year in the United States, and at $240-270 per person per year in low-income countries, "putting the drug far out of reach for those who need it most".

MSF said Thursday that "the new access price is not expected to be significantly different".

"Regardless, ViiV continues to undermine the established good practices of transparency on HIV drug prices and supply terms in its ongoing negotiations with procurers, by attempting to reinstate confidentiality clauses around the price and supply terms of CAB-LA," it said.

The medical charity said that since it first began responding to the HIV crisis more than two decades ago, it had consistently refrained from signing such clauses, akin to Non-Disclosure Agreements, as part of its efforts to help promote access to affordable, quality-assured treatments.

Bygrave called on ViiV to "stop stalling... so that we can make sure people in our care are offered the most effective HIV prevention as quickly as possible".

"MSF remains open to finding an immediate solution and awaits the response from ViiV."

WASHINGTON — Mortgage rates in the United States have surged to the highest since 2002, said a home loan finance company Thursday, adding pressure to buyers who are already grappling with high costs and low inventory.

The popular 30-year fixed-rate mortgage reached 7.09 per cent this week, said Freddie Mac in a statement, adding that it last rose above the 7 per cent threshold in November 2022.

The housing market has been reeling since interest rates rapidly climbed in recent months, a trend that has made home owners reluctant to put their properties up for sale — having previously locked in lower rates on their mortgages.

The current rate will "make it even more difficult for potential homebuyers to afford the new home that they're looking for," said Economist Oren Klachkin of Oxford Economics.

"It's just becoming increasingly unaffordable. Rates are high, there're also signs that the flow of credit is being tightened as well and because of this, there's basically no supply out there," he told AFP.

A year ago, the 30-year rate stood at 5.13 per cent while rates hovered below 3 per cent in late 2020.

The latest 7.09 per cent figure is the highest since April 2002, according to Freddie Mac data.

"The more rates rise, the less likely you are to list your house because it just means that you have to move from your sub-four per cent mortgage into a new mortgage," Klachkin said.

This could potentially double the cost of home owners' monthly payments, if rates go to 8 per cent, he added.

In June, sales of existing homes fell to the slowest rate since January while the median sales price hit the second-highest on record, according to National Association of Realtors (NAR) data.

The NAR noted that a third of homes were sold above list price that month.

With a lack of existing homes for sale, buyers have been pushed into the market for new properties.

AMMAN — Jordan Capital & Investment Fund (JCIF) announced that it has finalised details on a significant minority investment in Aqaba Digital Hub (ADH), a flagship project poised to tap into the growing demand for modern digital transformation in Jordan. 

The project encompasses the largest carrier-neutral 6MW data centres in Jordan and stands as one of the MENA region’s largest. Its array of services covers a range of offerings, including an open-access submarine cable landing station, cloud services, long-haul telecommunications services, a carrier-neutral Internet exchange point, expanded fibre networks and satellite services, according to a JCIF statement.

During a ceremony held at ADH’s offices in Aqaba on Thursday, JCIF — which is owned by Jordanian banks — and ADH signed the deal in the presence of Minister of Investment Kholoud Al Saqqaf; ASEZA Chief Commissioner Nayef Al Fayez; Deputy Governor of the Central Bank of Jordan Khaldoun Al Wshah; and Chairman of the Board of Commissioners of the Telecommunications Regulatory Commission Bassam Al Sarhan. The ceremony was also attended by leaders and dignitaries from the private sector.

Founded in 2017 by Eyad Abu Khorma, ADH currently operates regional fibre-optic networks and a carrier-neutral, Uptime-Certified Tier-III data centre; serves as a hub for connectivity, infrastructure technologies and cloud services; and provides wholesale capacity services to local and neighbouring markets. Moreover, ADH has been chosen as the Jordanian hosting facility and landing station for the Blue Raman submarine cable, linking Asia with Europe. Leveraging its existing infrastructure from the BlueRaman cable landing station, ADH will introduce new options for cloud services, international gateway services and other high-technology solutions and applications to the Jordanian and regional markets.

Strategically located within Aqaba, ADH data centres act as an ideal disaster recovery site for banks across Jordan, fortified by their secure and technologically advanced facilities. This development not only strengthens the financial sector’s resilience but also elevates Jordan’s financial technology ecosystem.

Saqqaf underscored the significance of the first investment agreement between JCIF and ADH as a vital step towards addressing the increasing demand for modern digital transformation services in Jordan. The minister emphasised the importance of establishing investment funds, as they stimulate and attract capital to invest in various priority and competitive economic sectors. This, in turn, is poised to substantively contribute towards the realisation of economic and developmental goals that will directly influence economic growth while combating poverty and unemployment issues.

Furthermore, Saqqaf added that the Investment Environment Law for 2022, for the first time, laid the foundation for a legal framework that facilitates the inception of investment funds devoted to the pursuit of economic activities. According to the law, an investment fund assumes legal personality following its establishment and formal registration under the Ministry of Investment. She also highlighted that the Investment Promotion Strategy 2023-2026, approved by the Investment Council in May, targets multiple sectors — namely IT — as a priority sector set to attract investments to Jordan.

Fayez stated that Aqaba serves as a host for the first Jordanian digital city and is considered a primary hub for tech investments within the region, which thereby helps promote Jordan globally. He emphasised ASEZA's pivotal role in providing facilitations for investors and in equipping and empowering youth through dedicated tech initiatives aimed at preparing them for such investments, as well as for the local and international job markets.

“This deal will mark a key investment for JCIF since its official launch in 2022 and aligns with the fund’s strategy to play a central role in the Jordanian economy by creating jobs, attracting new businesses and bringing cutting-edge technologies to local communities,” stated Hani Qadi, chairman of JCIF Management Company. “Information and communications technology [ICT] has emerged as a core driver of the modern knowledge-based economy and plays a crucial role in the socioeconomic development of a country. On this note, we extend our sincere appreciation to the government of Jordan and the Central Bank of Jordan for their consistent support of JCIF.” 

“Since its inception, the Aqaba Digital Hub has attracted distinguished local, regional and international telecommunications operators, as well as global content delivery networks,” said Abu Khorma. “Our partnership with JCIF will provide capital for growth, increase access to resources and help drive expansion by further opening up new market opportunities,” Abu Khorma added. 

“We are delighted to partner with Eyad Abu Khorma on this pioneering project, which will help serve the growing demand for modern digital services in Jordan and the MENA region. This project will be critical to enhancing solutions for digital transformation and developing hubs for companies and organisations of all sizes,”commented Faris Sharaf, CEO of JCIF Management Company.  

JCIF is wholly owned by 16 Jordanian commercial and Islamic banks and is the largest private sector investment fund in Jordan, with a capital commitment of JD275 million ($388 million). The fund aims to invest in pioneering companies with opportunities for growth, development and expansion by providing fresh capital to help increase employment and promote economic growth across Jordan. JCIF targets investments in dynamic and promising sectors, notably in the fields of food and health security, manufacturing, and ICT, with the aim of unleashing Jordan’s potential to build for the future, according to the statement. 

LONDON — Britain's annual inflation rate dropped sharply in July to a 15-month low, official data revealed Wednesday, off the back of lower energy prices and in line with economists' expectations.

The Consumer Prices Index (CPI) rose by an annual rate of 6.8 per cent, down from 7.9 per cent in June, the Office for National Statistics (ONS) said, easing the country's cost-of-living crisis.

July's price growth met the predictions of analysts, including the Bank of England, which had forecast the 6.8 per cent rate. 

It follows a bigger-than-expected drop in June, when the CPI fell 0.8 per cent.

However, UK inflation has for months been the highest among G-7 nations, despite the Bank of England hiking its key interest rate more than a dozen times in succession to try to tame it.

Although there was a fall in gas and electricity prices in July, food prices continued to rise, but less quickly than in the same month a year earlier.

"Inflation slowed markedly for the second consecutive month, driven by falls in the price of gas and electricity," ONS Deputy Director of Prices Matthew Corder said.

"Although remaining high, food price inflation has also eased again, particularly for milk, bread and cereal.

"Core inflation was unchanged in July, with the falling cost of goods offset by higher service prices," he added.

'Get it done' 

Prime Minister Rishi Sunak has set a target of halving inflation through this year to around five per cent by 2024.

Despite the Bank of England projecting inflation could actually rise again next month, due to the impact of public sector pay rises, Sunak insisted Wednesday's figures showed "the plan is working".

"If we stick to the plan I've set out, we'll get it done," Sunak added.

However, the Institute for Fiscal Studies economic think-tank was sceptical.

"The stubbornly high rate of price inflation for goods and services other than food and energy has put the target in jeopardy," said IFS Research Economist Heidi Karjalainen.

Finance Minister Jeremy Hunt welcomed the latest CPI data but cautioned "we're not at the finish line" and that hitting the Bank of England's 2 per cent inflation target "as soon as possible" remained the overarching goal.

Data published Tuesday showed that UK unemployment increased in the three months to the end of June while wages grew at a record annual pace.

Martin McTague, national chairman of the Federation of Small Businesses (FSB), said the latest CPI statistics would renew fears of a "wage-price spiral".

"The worry now is that rising wages ignite a fresh wave of inflation in September, which will threaten the momentum from June's GDP growth," he added.

Interest rate rises since late 2021 have sparked widespread financial pain, with mortgage turmoil in particular as commercial lenders lift their own rates on home loans.

Wednesday's CPI figures may not prevent a further rate rise in late September, when the Bank of England's monetary policy committee next meets to decide whether to hike its current base rate of 5.25 per cent.

DAMASCUS — Syrian President Bashar al-Assad has decreed a 100 per cent pay rise for civil servants and pensioners while fuel subsidies were lifted in a country ravaged by 12 years of war.

The Syrian economy has been battered by the conflict that has killed more than 500,000 people and displaced millions since it began in 2011.

In two decrees issued late Tuesday, Assad doubled the salaries and pensions of those currently and formerly employed in the civil service and military, as well as contract workers.

Prior to the decision, the monthly salary of civil servants had been between around $10 and $25, depending on the Syrian pound's street value.

The presidential decrees also set the minimum monthly wage in the private sector at 185,940 Syrian pounds, or about $13 on the black market.

In a separate statement late Tuesday, the commerce ministry announced the total lifting of subsidies on petrol and a partial lifting of subsidies on fuel oil.

As a result the price of petrol has risen to 8,000 pounds from 3,000 previously, and fuel oil to 2,000 pounds from 700 previously, according to the ministry.

The Syrian pound was trading at around 14,300 to the US dollar on Wednesday, according to unofficial monitoring websites, compared with the official rate of 8,542.

The currency has lost most of its value since the start of the war, when it was worth 47 against the greenback.

Most of the population has been pushed into poverty, according to the United Nations.

LONDON — UK unemployment increased in the three months to the end of June while wages grew at record annual pace, official data showed on Tuesday, as the economy struggles with high inflation.

The number of people out of work increased to 4.2 per cent compared to 4.0 per cent in the three months to the end of May, the Office for National Statistics (ONS) said. 

The rise is "mainly due to people taking slightly longer to find work than those who started job hunting in recent months," said Darren Morgan, director of economic statistics at the ONS.

He added that the number of people "prevented from working by long-term sickness has risen again to a new record". 

The UK finance ministry noted that Britain's unemployment rate was lower than that of Canada, France, Italy, Spain and the Euro area. 

While the unemployment rate is the highest since the period from July to September 2021, the ministry added that it remains "low by historical standards". 

The ONS figures also showed that regular pay excluding bonuses was 7.8 per cent higher in the three months to the end of June compared to the same period last year.

This is the highest annual growth rate since comparable records began in 2001.

"Coupled with lower inflation, this means the position on people's real pay is recovering and now looks a bit better than a few months back," Morgan said.

UK annual inflation stands at 7.9 per cent, the highest among G-7 nations, while the Bank of England is tasked by the UK government with keeping annual inflation at around 2 per cent.

Further rate hike 

The Bank of England has hiked its key interest rate several times since late 2021 and analysts predict that the central bank will increase its rates further following today's figures.

"The fall in employment in the three months to June and further rise in the unemployment rate will be welcomed by the Bank of England as a sign labour market conditions are cooling," said Ruth Gregory, deputy chief UK economist at Capital Economics.

But she added that with wage growth still accelerating, the Bank of England is likely to increase its key rate to 5.5 per cent "before it brings its tightening cycle to a close".

"There was always the likelihood that today's unemployment and wages numbers would give the Bank of England a headache when it comes to deciding what to do when it comes to further rate increases," said Michael Hewson, chief market analyst at CMC Markets UK.

"And this morning's numbers have not just given the central bank a headache, but a migraine," he added.

For Susannah Streeter, head of money and markets at Hargreaves Lansdown, the record annual wage growth means another rate hike from the Bank of England "looks bolted on in September". 

According to a report by the Chartered Institute of Personnel and Development published Monday, 40 per cent of British employers making a counteroffer have offered a higher salary amid persistent labour shortages.

At the same time, workers across the economy have over the past year staged industrial action to demand pay rises in response to the worst cost-of-living crisis in a generation. 

According to the ONS, 160,000 working days were lost because of labour disputes in June, and over half of those were in the health and social work sector.