QATAR | Page 20 SPORT | Page 1 INDEX 2, 20 QATAR 3 REGION 4, 5 ARAB WORLD INTERNATIONAL 6 – 17 18, 19 COMMENT BUSINESS 1 – 5, 8 – 12 CLASSIFIED SPORTS 7, 8 1 – 11 Al Khor Fly In event sparks children’s interest in aviation Nasser stretches Dakar lead DOW JONES QE NYMEX 17,758.49 12,305.52 47.54 -149.38 -0.83% +407.34 +3.42% -1.25 -2.56% Latest Figures pu QATAR | Sport Bayern Munich team in Doha German champions Bayern Munich arrived in Doha yesterday for their winter training camp which lasts for eight days. A number of German national team players who won the World Cup in Brazil are part of the travelling squad including, Mario Gotze, the scorer of World Cup final winning goal. The camp is the fifth for the German giants who will be training at Aspire Academy. The club’s chairman, Karl-Heinz Rummenigge, praised the training conditions in Doha as well as the sporting facilities, saying that the players were eager to return to Qatar every year. Bayern will take on Qatar Stars League all-star team in a friendly on Tuesday at Abdullah bin Khalifa Stadium, with the latter being coached by Lekhwiya manager Michael Laudrup. Gorbachev warns of major conflict Reuters Paris Former Soviet leader Mikhail Gorbachev warned that tensions between Russia and European powers over the Ukraine crisis could result in a major conflict or even nuclear war, in an interview to appear in a German news magazine. “A war of this kind would unavoidably lead to a nuclear war,” the 1990 Nobel Peace Prize winner told Der Spiegel news magazine, according to excerpts released yesterday. “We won’t survive the coming years if someone loses their nerve in this overheated situation,” added Gorbachev, 83. “This is not something I’m saying thoughtlessly. I am extremely concerned.” Page 18 COMMODITIES | Energy Oil hits lowest since April 2009 Global oil prices resumed their slide yesterday after two days of relative calm, with Brent and US crude hitting their lowest level since April, 2009, on persistent worry over the global supply glut. Benchmark Brent crude broke below $49 a barrel, drifting further below the $50 support level it had seen earlier in the week. US crude fell below $48. Oil prices had barely moved in the past two sessions after tumbling 10% the first two days of the week. SYRIA | Conflict Assad вЂ�building nuclear plant’ Intelligence suggests that Syrian President Bashar al-Assad is building a secret underground plant with the aim of developing nuclear weapons, Germany’s Spiegel news magazine said yesterday. Citing information made available by unidentified intelligence sources, Spiegel said the plant was in an inaccessible mountain region in the west of the war-ravaged country, 2km from the Lebanese border. Children flying a kite in front of a sculpture on the Corniche Promenade in Doha, promoting the Handball World Championship 2015, which will take place in Qatar from January 15 to February 1. Film lovers rue dearth of вЂ�affordable’ venues By Ramesh Mathew Staff Reporter F ilm lovers among the country’s expatriates continue to rue the dearth of cinemas that they can visit without having to pay a hefty sum for a ticket. While Qatar has more than 50 multiplex screens spread over seven locations, many movie buffs feel that unlike in some other GCC states, the country has only a couple of halls that can be called “affordable” options for expatriates with limited income. Some of the п¬Ѓlm lovers say the only halls that fall within their budget are the two screens at West End Park, which cater mainly to South Asian expatriates, screening Bollywood and other Indian п¬Ѓlms. Two more screens are due to open at the venue. While there has been a surge in the country’s population over the last п¬Ѓve to six years, including a large number of workers who have arrived in Qatar to take up employment in different infrastructure and other projects, there are hardly any avenues for entertainment for people like them. It is learnt from the operators of some major multiplexes in the country that they generally have little patronage on weekdays. On weekends, the crowds swell signiп¬Ѓcantly, especially when bigticket blockbusters are screened. People queuing up for cinema tickets at West End Park. PICTURE: Jayaram. The relatively low patronage on weekdays has prompted some to call for better marketing strategies, as seen in some European cities, where tickets for shows on weekdays are priced lower than those for weekends. Such a model is followed in some Asian cities as well. “If the operators can offer reduced ticket rates on weekdays, the response would certainly be better,” says an expatriate who moved to Qatar more than a couple of years ago from a neighbouring GCC state. Sources familiar with the movie industry in the GCC states say some cinemas in the UAE and Oman have also successfully experimented with the model of lower ticket rates on weekdays. When contacted recently, a local cinema operator said their company had plans to introduce a similar marketing strategy so as to boost patronage on weekdays. Calling for the introduction of such marketing plans at local screens, a cinema manager said it would not only contribute to improved revenues for companies like theirs, but also provide an opportunity for many people to watch movies in a comfortable environment. Sri Lanka swears in new president Reuters Colombo Cables of congratulations S HH the Emir Sheikh Tamim bin Hamad al-Thani and HH the Deputy Emir Sheikh Abdullah bin Hamad al-Thani have sent cables of congratulations to Maithripala Sirisena on the occasion of his winning Sri Lanka’s presidential ri Lankan President Mahinda Rajapakse lost his bid for a third term yesterday, ending a decade of rule. Opposition candidate Maithripala Sirisena, a one-time ally of Rajapakse who defected in November and derailed what the president thought would be an easy win, took 51.3% of the votes polled in Thursday’s election. Rajapakse got 47.6%, according to the Election Department. Celebratory п¬Ѓrecrackers were set off in the capital, Colombo, after Rajapakse conceded defeat to Sirisena, who has vowed to root out corruption and bring constitutional reforms to weaken the power of the presidency. Sri Lanka’s stock market climbed to its highest in nearly four years. “We expect a life without fear,” said Fathima Farhana, a 27-year-old Muslim election, wishing him success. HE the Prime Minister and Minister of Interior Sheikh Abdullah bin Nasser bin Khalifa al-Thani has also sent a cable of congratulations to Sirisena on the occasion. woman in Colombo. “I voted for him because he said he will create equal opportunities for all,” she said of Sirisena. Like Rajapakse, Sirisena is from the majority Sinhala Buddhist community, but he has reached out to ethnic minority Tamils and Muslims and has the support of several small parties. Sirisena was sworn in at Colombo’s Independence Square, where British colonial rulers handed Sri Lanka its independence in 1948, alongside his new prime minister Ranil Wickremesinghe. In an acceptance speech, he was vague on foreign policy, promising to “maintain a close relationship with all countries and organisations”. However, his allies say he will rebalance the country’s foreign policy, which tilted heavily towards China in recent years as Rajapakse fell out with the West over human rights and allegations of war crimes committed at the end of a drawn-out conflict with Tamil separatists in 2009. Pages 17, 18 January 10, 2015 Rabia I 19, 1436 AH www. gulf-times.com 2 Riyals Suspects killed as twin sieges rock France The violent end to the simultaneous stand-offs followed a police operation of unprecedented scale as France tackled one of the worst threats to its internal security in decade UKRAINE | Crisis in In brief d Doha ready for Handball World Championship he R is bl TA 978 A 1 Q since GULF TIMES SATURDAY Vol. XXXV No. 9598 T wo brothers suspected of a bloody attack on the offices of French satirical newspaper Charlie Hebdo were killed when police stormed their hideout yesterday, while a second siege ended with the deaths of four hostages. The violent end to the simultaneous stand-offs followed a police operation of unprecedented scale as France tackled one of the worst threats to its internal security in decades. The heavy loss of life over three consecutive days also risked fuelling anti-immigrant voices in the country and elsewhere in the West. Officials said Cherif Kouachi and his brother Said, both in their thirties, died when anti-terrorist forces moved in on a print shop in the small town of Dammartin-en-Goele, northeast of Paris, where the chief suspects in Wednesday’s attack had been holed up. The hostage they had taken was safe, an ofп¬Ѓcial said. Automatic gunп¬Ѓre rang out, followed by blasts and then silence as smoke could be seen billowing from the roof of the print shop. Amid thick fog, a helicopter landed on the building’s roof, signalling the end of the assault. A government source said the brothers had emerged from the building and opened п¬Ѓre on police before they were killed. Minutes later police broke the second siege at a Jewish supermarket in eastern Paris. A police union source said four hostages had died there along with a gunman, believed to have had links to the same Islamist group as the Kouachi brothers, who was holding them. News footage of the Hyper Cacher kosher supermarket in the Vincennes district showed dozens of heavily armed police officers massed outside of two entrances. The assault began with gunп¬Ѓre and a loud explosion at the door, after which hostages were rushed out. Reuters photographs taken from long distance showed a man holding an infant and looking distressed being herded into an ambulance by police. Others were carried in on stretchers. French authorities have mobilised a force of nearly 90,000 since Wednesday’s attack on Charlie Hebdo, a weekly that has long courted controversy by its satirical articles and cartoons. The Kouachi brothers were prime suspects in this attack when hooded gunmen shot dead 12 people including some of France’s top cartoonists along with two police officers. Security sources said the Frenchborn brothers of Algerian origin had been under surveillance and had been Emir reiterates Qatar’s solidarity HH the Emir Sheikh Tamim bin Hamad al-Thani yesterday held a telephone conversation with French President Francois Hollande. The Emir expressed his condolences and sympathy to the French government and families of the victims of the “criminal attack” on the offices of Charlie Hebdo newspaper on Wednesday as well as the shooting at Montrouge on Thursday, wishing speedy recovery for the injured, the official Qatar News Agency (QNA) said. “HH the Emir reiterated Qatar’s solidarity with the French people and its leadership against such a crime that aims to destabilise the security and stability of the friendly French Republic, stressing the state’s stance that rejects violence and terrorism no matter what the motives and reasons were,” QNA said. “The Emir greeted the French president on his position on distinguishing between the perpetrators of this heinous crime on one side and Islam and Muslims on the other,” it added. placed on European and US “no-fly” lists. The violence raised questions about surveillance of radicals, far-right politics, religion and censorship in a land struggling to integrate part of its 5mnstrong Muslim community, the largest inn the European Union. European leaders will make an extraordinary show of support for France by joining a mass rally in Paris tomorrow as a wave of global support continued following the bloody end to the Charlie Hebdo attacks’ sieges. British Prime Minister David Cameron and Spanish Prime Minister Mariano Rajoy, whose countries have suffered major terror attacks in the past decade, were among the п¬Ѓrst to say they would attend a huge rally in Paris tomorrow. Cameron said he would be “celebrating the values behind Charlie Hebdo”. German Chancellor Angela Merkel, Italian Prime Minister Matteo Renzi and Belgian Prime Minister Charles Michel said they would also come. European Council President Donald Tusk and European Commission chief Jean-Claude Juncker said they would attend the Paris rally as well, accompanied by the EU’s foreign affairs supremo Federica Mogherini. Tusk said European Union’s next scheduled summit on February 12 would focus on how to boost anti-terror efforts. “Terror has struck in Europe. It is, sadly, not the п¬Ѓrst time,” Tusk said in Riga, the capital of Latvia which assumed EU’s rotating presidency on January 1. The EU can respond to the “barbaric attacks in Paris” by “strengthening our security”. Pages 3, 4, 11 French police special forces launching their assault to break the siege at a Jewish supermarket in eastern Paris. 2 Gulf Times Saturday, January 10, 2015 QATAR Pardon for Nepalese expatriate convicted of murder A Nepalese expatriate who was convicted for the murder of an Indonesian woman, and awarded a 15-year jail sentence, has been pardoned by the Government of Qatar and travelled home. Chandrasekhar Yadav, 40, was pardoned as part of the Qatar National Day celebrations last month, according to a Nepalese newspaper’s online portal. On Thursday he reached his home in Belaha district in Nepal. Yadav was sentenced on December 21, 2010 along with two Indian taxi drivers - Sreedharan Manikantan and Mahadevan Unnikrishnan - who were awarded a 25-year sentence each. They have been serving the sentence in the Central Prison since October 2003 in the case of an “unidentiп¬Ѓed” Indonesian woman, whose body was found at Al Wakrah beach. The case moved from one court to the other and one of the courts had awarded death sentence to the trio in 2006 before the Supreme Court reduced the punishment in December 2010. The case was reportedly one of the rarest instances of a legal battle going to the country’s Supreme Court thrice before its п¬Ѓnal judgment, which came seven years after the legal process began. Although the police could not establish the identity of the murdered woman, the public prosecution said she was an absconding Indonesian maid. Former Nepal ambassador to Qatar Suryanath Mishra, who had taken special interest in Yadav’s case and appointed for him a Qatari woman lawyer Mona Abdulrahman, has hailed his release. He also expressed his gratitude to the Qatari authorities, the Nepalese newspaper has reported. Yadav’s wife Ramdulari Devi also thanked the Qatari government and all those who had supported the efforts to secure his release. Multiple вЂ�projects by same company causing delay’ Some members of the Central Municipal Council (CMC) have complained against companies which deploy their manpower between several projects at the same time, thereby causing delays in completion, local Arabic daily Arrayah has reported. Such companies also engaged sub-contractors who failed as well to deliver on time. A CMC member cited a specific project in which nine sub-contractors were engaged in a year. “Finally, this project was delayed and it was after completion that many technical defects came to light,” he said. Another member of the CMC pointed out that delays in the completion of projects and defective construction are a burden on the exchequer. “A lot of money is spent on repairing such defects,” he said while calling for classification of the companies in terms of completing the work with quality and within the deadline. “Defaulting companies should be excluded from future contracts and only contractors who are capable of handling the projects by themselves selected,” the CMC member added. Guard honoured A laaudddin Ahmed, an expatriate security guard of a private security company deployed at Hamad International Airport (HIA), handed over to the authorities a bag containing 16,500 euros, which he found abandoned, local Arabic daily Al-Sharq reported yesterday. Ahmed was thanked and honoured by Brigadier Issa Arar al-Rumaihi, director, airport security department. QRC Al Khor holds п¬Ѓrst-aid lecture for marine scouts Q atar Red Crescent’s (QRC) branch in Al Khor recently participated in several social and cultural events and organised a п¬Ѓrst-aid lecture for scouts under “I Am a Paramedic”, a public training programme sponsored by the Ras Laffan Community Outreach Programme (COP) during the 2014-2015 academic year and targeting 4,500 students across 19 schools in the Al Shamal (northern) region of the country as well as teachers, administrative staff and parents (through the students). At the Cultural Convoy, a two-day event organised by the Ministry of Culture, Arts and Heritage at Al Khor Cultural Centre and involving cultural, artistic and folkloric activities, the branch set up a special corner to introduce the public to QRC’s mission and role in the service of the Qatari and other societies, distribute health education printouts and conduct blood sugar and pressure tests for free for the 600 visitors. The branch also organised the Safe Journey exhibition at the Al Thakhira Youth Centre in partnership with the Community Policing Department and Traffic Department. The exhibition lasted for two days - one Each peacock can cost as much as QR1,800 at the bird market, but customers can also get good bargains. PICTURES: Joey Aguilar Health education printouts being distributed among children. for men and another for women - with a special focus on youth aged 14-21 years to educate them on traffic rules and road safety procedures, thereby helping reduce accidents and subsequent injuries and deaths. A QRC corner was established to communicate with the public, inform them of the basics of п¬Ѓrst aid that must be administered to injured people, and safety guidelines. QRC ambulances and medical workers were de- ployed to provide medical coverage at the event venue and perform health checks for free to those attending, whose number exceeded 500. In relation to community training and education, the branch organised a п¬Ѓrst-aid lecture for scouts under the “I Am a Paramedic” programme for the beneп¬Ѓt of 15 members of the Marine Scouts Camp – Al Khor. Delivered by Da’as Qassem Baioumi, a volunteer and п¬Ѓrst- aid instructor, the lecture was aimed at raising awareness among the youth on the importance of п¬Ѓrst aid and the fundamental skills that should be learnt by anyone who deals with an injured person in emergencies. QRC – Al Khor works for the local community in the Al Shamal region through close co-operation with different institutions and civil society organisations there. Chinese hen for sale. Bird market in Mamoura attracting city pet keepers By Joey Aguilar Staff Reporter A small bird market at Mamoura in Doha continues to attract residents who want to own exotic pets such as peacocks. Located within a slaughterhouse a few metres away from the vegetable and п¬Ѓsh market, the place is spread over approximately 200sq m. A seller said they get the peacocks from Al Khor along with other birds such as Chinese chicken, small and big ducks and swans. He added that the peacocks are originally from Qatar and not imported from other countries. As this species is rare in Qatar, peacocks are more expensive than the other birds they sell, he added. While a single peacock can cost as much as QR1,800, a customer can get a pair at a heavily discounted price of QR2,000. Some customers try to fur- ther negotiate the price, quoting as low as QR500 per piece, but the seller insists on the last price of QR2,000 per pair. The seller said he may not be able to sell all 10 birds before the winter ends, but expressed conп¬Ѓdence that buyers would flock to the place before summer. While he noted that peacocks can adapt to all types of climate, some caretakers have provided air-conditioners in cages. “This is to make sure that they are safe from the searing heat during summer,” he pointed out. The bird market also sells hens, roosters, turkeys and quails, among other types. One can also п¬Ѓnd rabbits in the market. A hen costs QR50 while a rooster is pegged at QR70. Smaller birds are cheaper, such as little ducks and quails. Besides, eggs can also be bought from the place. While a tray of chicken eggs (30 pieces) is priced at QR25, a tray of turkey eggs costs QR250. Asked why such eggs are expensive, one seller explained that turkey eggs are bigger and more nutritious and delicious. “Many of our regular customers in Doha visit us just to buy turkey eggs,” he said. “They know these are really fresh ones.” A number of residents visit the market looking for turkey, hens, ducks, rabbits, parrots and other kinds of birds and animals, according to the seller. “Unfortunately, as some birds are not available here, we refer them to shops in Souq Waqif.” Big ducks attract a number of customers. Besides peacocks and chicken, the bird market also sells rabbits. QC sponsors meeting on Humanitarian Summit preparation Q atar Charity (QC) has sponsored a co-ordination meeting to prepare for the Humanitarian Summit, taking place in the Moroccon capital, Rabat, from January 26 to 28. The meeting is organised by the Humanitarian Forum and hosted by the Islamic Educational, Scientiп¬Ѓc and Cultural Organisation in co-ordination with the Organisation of Islamic Co-operation, sponsored by QC and the Alwaleed Bin Talal Foundation. The meeting aims to draw the attention of directors and heads of boards of directors of civil society organisations working in various areas of development to the issues of efficiency and accountability, given their importance in the management of these organisations, enabling them to use current methodology and tools in building their capacity. The meeting is taking place ahead of the regional meeting of the Global Humanitarian Summit for the Middle East and North Africa, which will be held by the United Nations Ofп¬Ѓce for the Co-ordination of Humanitarian Affairs (OCHA) in the п¬Ѓrst week of March in the Jordanian capital Amman, in preparation for the 2016 Humanitarian Summit. The meeting aims to discuss the outputs and national workshops that have already been held in the Middle East, North, East and South Africa and in Europe to develop a collective perception of Arab societies regarding the future of humanitarian work in the Arab region within the framework of the 2016 World Summit. The last day of the meeting will involve a workshop to build the capacity of civil society organisations and raise awareness among civil society bodies in Morocco in order to enable them to perform their roles effectively, and make them viable and ready for accountability of various stakeholders. The objectives of this workshop involve three main goals: raising the awareness of civil society organisations, the concept and the areas of building their own abilities, drawing the attention of the directors of these organisations to the issues of efficiency and accountability in light of their importance in the management of contemporary civil society organisations, and enabling officials in these organisations in the methodology and tools used in civil society organisations internationally. The Humanitarian Forum, in collaboration with 23 humanitarian organisations, including QC, has already held a national workshop in the Middle East, North, East and South Africa and Europe, including 14 consultative workshops in the Arab world - in Qatar, Bahrain, Kuwait, Yemen, Jordan, Tunisia, Sudan, Saudi Arabia, Libya, Iraq, Lebanon, Egypt, with Syrian organisations operating in Turkey, and Palestine (in both Gaza and the West Bank). QC has organised several previous workshops in this regard, including two national consultations in the West Bank and Gaza Strip in preparation for the World Summit on Humanity to be held in Istanbul in 2016 in co-ordination with the Humanitarian Forum and the United Nations Office for the Coordination of Humanitarian Affairs in Palestine, and with the participation of over 100 human institutions. QC organised a similar workshop in collaboration with the Humanitarian Forum under the auspices of OCHA in Gaziant- ep, Turkey, with the participation of 51 people representing 30 organisations active in Syria. Similar workshops have also been held in the Balkans in support of civil society organisations set to participate in the 2016 summit. Within the same framework, QC also participated in the п¬Ѓrst national consultative meeting for humanitarian organisations, which was held in Doha in collaboration with Qatar Red Crescent (QRC), the Humanitarian Forum and OCHA, at the QRC headquarters in Doha. Twenty-four representatives from the Qatar humanitarian п¬Ѓeld participated in the workshop, representing 10 of the most important Qatari actors. Gulf Times Saturday, January 10, 2015 3 REGION AQAP seen as Al Qaeda’s most dangerous arm AFP Sanaa A l Qaeda in the Arabian Peninsula, which is reported to have trained one of the two suspects in the deadly attack on French magazine Charlie Hebdo, is seen by Washington as the militant network’s most dangerous branch. It was formed in January 2009 as a merger of the Yemeni and Saudi branches of Al Qaeda and is led by Nasser al-Wuhayshi. AQAP has a record of launching attacks far from its base in Yemen, including a bid to blow up a US airliner over Michigan on Christmas Day in 2009. The group recently called for its supporters to carry out attacks in France, which is part of a US-led coalition conducting air strikes against Islamic State group militants in Iraq and Syria. AQAP’s English-language propaganda magazine Inspire has urged militants to carry out “lone wolf” attacks abroad. In 2013 it named Charlie Hebdo cartoonist and editor-in-chief Stephane Charbonnier among its list of targets. Charbonnier was one of 12 people killed in Paris on Wednesday by two gunmen who stormed the magazine’s offices. In 2009 an AQAP suicide bomber tried to assassinate Saudi Prince Mohamed bin Nayef, the kingdom’s current interior minister who had led a crackdown on the militant group between 2003 and 2006. The attacker managed to inп¬Ѓltrate Prince Mohamed’s security in Jeddah and detonate explosives planted inside his body. The prince escaped with light wounds and the bomber was the only fatality. In November 2010, the group claimed responsibility for sending parcel bombs to the United States and putting a bomb aboard a UPS cargo plane that crashed two months earlier in Dubai. It took advantage of the weakness of Yemen’s central government during an uprising in 2011 against now-ousted president Ali Abdullah Saleh to seize large swathes of territory across the south. But after a month-long offensive launched in May 2012 by Yemeni troops, most militants fled to the more lawless desert regions of the east towards Hadramout province. Since then, AQAP has regularly carried out deadly attacks against Yemeni security forces and, more recently, has claimed a series of bombings against Shia Houthi militiamen in the capital Sanaa and central provinces. The US has launched scores of drone strikes on AQAP targets in Yemen, including an attack that killed US-born American radical Islamist cleric Anwar al-Awlaki in September 2011. Months later, Yemeni Al Qaeda leader Fahd al-Quso, who was believed to have helped mount a deadly attack on a US warship in a Yemeni port in 2000, was killed in an air raid blamed on the US. In July 2013, AQAP conп¬Ѓrmed the death in a US drone strike of its deputy leader Saeed al-Shehri, a former Guantanamo Bay prisoner in Cuba who had undergone rehabilitation in Saudi Arabia after his release. The first known attack of Al Qaeda in Yemen dates back to 1992, when bombers hit a hotel that formerly housed US Marines in the southern city of Aden, in which two non-Amer- Five held over car bombing in Sanaa Paris attack suspect вЂ�was trained’ by Yemen Qaeda Said Kouachi is said to have travelled to Yemen in 2011, where he received training from Al Qaeda in the Arabian Peninsula in small arms combat and marksmanship Agencies Sanaa O ne of the suspects in the attack against French satirical magazine Charlie Hebdo studied in Yemen where he attended Al Qaeda training camps, Yemeni security sources and a classmate said yesterday. Said Kouachi appeared at various times between 2009 and 2013 in the troubled country, п¬Ѓrstly as a student at Sanaa’s Al Iman University and then at Al Qaeda training camps in south and southeast Yemen, the sources said. According to witness reports from Wednesday’s attack on the Paris office of Charlie Hebdo that left 12 people dead, one of the two gunmen cried out that Al Qaeda in Yemen was behind it. The two suspects, Said Kouachi and his brother Cherif, were killed yesterday when police stormed the building where they were holed up, sources close to the investigation said. Said Kouachi in 2009 attended Al Iman University, headed by fundamentalist preacher Abdel Majid al-Zindani whose name п¬Ѓgures on a US terror blacklist, a former Yemeni classmate said, declining to be named. According to US officials, Kouachi was known by French intelligence to have travelled to Yemen in 2011, where he received training from Al Qaeda in the Arabian Peninsula (AQAP) in small arms combat and marksmanship. Yemen, a key ally in US efforts to combat Al Qaeda, has been wracked by political turmoil and violence since an uprising toppled strongman Ali Abdullah Saleh in 2012. AQAP, formed in January 2009 as a merger of the Yemeni and Saudi branches of Al Qaeda, is seen by Washington as the millitant network’s most dangerous branch. The US has launched scores of drone strikes on AQAP targets in Yemen, which experts say the group has been using as a military and ideological training ground for militants from around the world. Laurent Bonnefoy, a professor at Sciences Po university in Paris and an expert on Yemen, said many foreigners travel to the country to attend Qur’anic and Arabic language classes. Some of the students, “who at the outset do not have a violent outlook, veer towards violence”, Bonnefoy said. Saeed al-Jamhi, a Yemeni researcher and specialist on extremist groups, said AQAP has п¬Ѓne-tuned “a policy of recruiting foreign elements” among students who converge on the impoverished and unstable country. “After having trained them, AQAP leaves them free to select the targets and means to carry out” attacks, he said. Bonnefoy agreed that “any eventual claim of responsibility does not mean that AQAP was Kerry, Zarif to meet in Geneva next week Agencies Washington U S Secretary of State John Kerry will meet with his Iranian counterpart in Geneva on January 14 ahead of the next round of talks on Iran’s nuclear programme, a US official conп¬Ѓrmed yesterday. The two foreign ministers will discuss “guidance for the negotiating teams” which will meet in the Swiss city from January 18 seeking to reach a deal before the end of June, a senior State Department official said. Iranian negotiator Abbas Araqchi was earlier quoted by the Isna news agency as saying that Iranian Foreign Minister Mohamed Javad Zarif would meet with Kerry in Geneva. US and Iranian delegations are also to hold bilateral discussions on January 15-17 ahead of multilateral talks between Iran and the P5+1 group of nations. The US State Department announced on Thursday that bilateral negotiations would restart in Geneva, as a third deadline for a lasting agreement on Iran’s nuclear programme looms. Acting Deputy Secretary Wendy Sherman, who has led the US delegation for more than two years, will head the team of senior officials and advisers to the talks, it said. Republican lawmakers said on Thursday they are close to reintroducing legislation seeking a voice in the negotiations and to impose tougher sanctions against Iran, now that they control both houses of the US Congress. Senator Mark Kirk told reporters at the Capitol he expected the Senate banking committee to vote within weeks on a bill he co-authored with Democratic Senator Robert Menendez that would increase sanctions on Iran if the negotiations falter. directly involved or provided operational support”. However, Charlie Hebdo has for years been on an AQAP list of targets and Al Qaeda’s late chief Osama bin Laden warned Europe back in 2008 of consequences for Prophet Muhammad cartoons published in a Danish newspaper and reproduced in the French weekly. According to the classmate at Al Iman University, Said Kouachi, a Frenchman of Algerian origin, used the name of Mohamed. “He was disciplined, calm and discreet” as a student, he said. The classmate said he lost track of Kouachi between 2010 and 2013, when Shia militiamen overran a studies centre in Dammaj, in Saada province to the north of the capital, run by Salaп¬Ѓsts. Another colleague said Kouachi battled with other students to defend the centre against the Shia п¬Ѓghters, before their defeat in December of that year when survivors were evacuated. How he returned to France afterwards remains unknown. Western intelligence sources said that after Kouachi’s return from Yemen, both brothers appeared to have refrained from any activities that might have drawn the attention of French law enforcement or spy agencies. They also said that in the months leading up to Wednesday’s attack, the men were not treated as priority targets by French counter-terrorism agencies although Germany said later they were on a European watch list. ican citizens were killed. In 2000, an Al Qaeda suicide attack on the naval destroyer USS Cole in Aden killed 17 US military personnel. Two years later, a bombladen boat struck the Frenchowned oil tanker Limburg off the coast of Yemen. Al Qaeda claimed responsibility for the attack that killed a Bulgarian sailor. Wuhayshi in July 2011 reafп¬Ѓrmed the group’s allegiance to Ayman al-Zawahri, head of the worldwide Al Qaeda network since the death of Osama bin Laden in May 2011. AFP Sanaa Y Mourners carry the coffins of two victims of Wednesday’s car bombing during a funeral procession in Sanaa yesterday. Fiery protest Saudi arrests seven over border attack Reuters Dubai S A Molotov cocktail thrown by protesters explodes on a riot police armoured personnel carrier at a highway in the village of Sitra, south of Manama, yesterday. Several demonstrations calling for the release of Sheikh Ali Salman, head of the Al Wefaq opposition group, were held across the country, local media reported. emeni security forces have arrested п¬Ѓve suspected Al Qaeda members accused of carrying out a car bomb attack on a police academy that killed 40 people, the Sanaa police chief said yesterday. General Abdel Razaq alMoayed, quoted by the ofп¬Ѓcial Saba news agency, said the п¬Ѓve members of “an Al Qaeda cell” had been detained and that a sixth suspect, the owner of the vehicle used in Wednesday’s attack, was being sought by authorities. The official said the п¬Ѓrst suspect was arrested on Wednesday at the scene of the attack and had provided the names of the other four cell members. The vehicle owner was identified by the registration documents, Moayed added. The bombing targeted dozens of potential recruits lined up to register at the academy in the centre of the Yemeni capital, killing 40 and wounded 71 others. Yemen’s top security body blamed Al Qaeda for the blast. But a leader of Al Qaeda in Yemen, Sheikh Saleh Abdel Ilah al-Dahab, denied any involvement by the militant group in Wednesday’s attack. “Al Qaeda has nothing to do with the incident,” he wrote on Twitter, accusing the Shia Houthi militia that overran Sanaa in September of being behind the bombing. Unstable and impoverished Yemen has been hit by a wave of violence in recent months, as the Houthis clash with Sunni tribal forces and Al Qaeda militants. audi Arabia has arrested three Saudi nationals and four Syrians over links to a suicide bombing and gun attack on the kingdom’s border with Iraq, the п¬Ѓrst ground assault by militants on the frontier in years. On Monday, militants killed two Saudi border guards and their commanding officer on the frontier with Iraq, the interior ministry said, in an assault one analyst called Islamic State’s п¬Ѓrst assault on the kingdom. Yesterday, state news agency SPA quoted an interior ministry spokesman as saying three of the four attackers who were all killed during the raid - were Saudi nationals and described them as members of the “deviant group”, a phrase authorities have used to describe Al Qaeda. Security forces also seized weapons including AK47 automatic guns, hand grenades, explosive belts and cash including Iraqi and Syrian banknotes, from the scene where the attack took place. Seven people - three Saudis and four Syrians - have been arrested, he added. No group claimed responsibility for the assault in a remote desert area next to Iraq’s Anbar province, where the Islamic State militant group is п¬Ѓghting Iraqi army forces backed by Shia militias. The four raiders shot at a border patrol on Monday morning near the city of Arar and when security officers responded, one of the attackers was captured and detonated an explosives belt and was killed. Another attacker who was shot during an initial exchange of п¬Ѓre near the Suweif border post was also killed as were two other militants as they were trying to escape. Saudi forces have joined USled air strikes against Islamic State positions in Syria. The group, which has declared its own caliphate and wants to redraw the map of the Middle East, has called for “lone-wolf” attacks against Saudi security forces, the Shia minority and foreigners. Saudi Arabia boosted its security on the frontier with Iraq in July, adding thousands of troops to back up a border guards force, after Islamic State seized swathes of territory in Iraq including in Anbar province. 4 Gulf Times Saturday, January 10, 2015 ARAB WORLD Paris attack reminds Arab cartoonists of risks at home Reuters Cairo A fter Egyptian cartoonist Andeel took to social media to condemn the slaughter of colleagues in Paris, he received expressions of sympathy - often not for the victims but for the suspected Islamist gunmen. Some respondents on his Facebook page criticised the attack at the offices of the Charlie Hebdo newspaper, in which 12 people including several of France’s top cartoonists were shot dead on Wednesday. But Andeel was alarmed by the level of backing for the killings at the French weekly. The 28-year-old satirist said he feared voices of moderation were being drowned out because expressions of hate “are always a lot more colourful and loud”. The Charlie Hebdo killings were thousands of kilometres from Cairo, and yet reminded Arab cartoonists of the risks they face. “A lot of people showed so much support for these crimes which is really weird and kind of crazy,” Andeel said. Freedom of expression was meant to flourish after the Arab Spring revolts brought down au- tocrats across much of the Middle East and North Africa. Nearly four years later, many people are still watching their step. Authoritarian rule has returned to many Arab countries while the rise of Islamic State militants who have seized large areas of Iraq and Syria also poses dangers to anyone who dares to debate religion. Chief among them are satirists, who had felt a greater sense of freedom after the autocrats were toppled in 2011. “I see what happened (in Paris) as a continuation of what is going on in Syria and Iraq ... The same “A lot of people showed so much support for these crimes which is really weird and kind of crazy” mentality,” said Hany Shams, a cartoonist at Egypt’s government-run Akhbar Al Youm newspaper. In Lebanon, satirists say things are easier but far from ideal. Stavro Jabra, a cartoonist whose work is published in two dailies, said he had known some of the Charlie Hebdo victims. “We want to defend the freedom of the press, the freedom of the media and the freedom of opinion. This is our mission,” said Jabra. Lebanon had more freedom than other Arab countries, but there were still limits that applied to local leaders as well as the multi-ethnic country’s religions. One such was Hassan Nasrallah, leader of the Shia Muslim movement Hezbollah. “We can’t get into religions ... If you draw Nasrallah, they will attack you,” said Jabra. “If you draw this person or that, it’s forbidden. You get threats, phone calls, e-mails saying вЂ�this cannot be drawn’.” Outside the Arab world in Turkey, cartoonists were targeted by some Islamist writers on Twitter after the Paris attack. Ibrahim Yoruk, a columnist at the newly-established Vahdet newspaper, warned Turkish satirical magazine Penguen under the #CharlieHebdo hashtag. “You can’t do humour by insulting the faith of the people, Penguen. You should realise this,” he said. Another user, whose account seemed later to have been suspended, took to Twitter to threaten another satirical weekly called Leman. “God willing the next will be Leman magazine, although there’s more than 12 there to be decapitated,” the user tweeted under the same hashtag. Hezbollah leader Nasrallah addresses his supporters via a screen in Beirut’s southern suburbs yesterday. Actions of militants worse than cartoons: Hezbollah AFP Beirut T he chief of the powerful Lebanese Shia group Hezbollah said yesterday that militants have caused more offence to Muslims than any book, cartoon or п¬Ѓlm. In a televised speech, Hassan Nasrallah also said Western countries were aiding militancy by exporting terrorists to Muslim countries. “Now, more than ever, we need to talk about the Prophet (Muhammad) because of the behaviour of certain terrorist... groups that claim to be Islamic,” said Nasrallah. “They offended the Prophet of God more than anyone else in history,” he added. “Through their shameful, heinous, inhumane and cruel words and acts, (these groups) have offended the Prophet, religion... the holy book and the Muslim people more than any other enemy,” said Nasrallah. And he said that offence was “greater than the books, the п¬Ѓlms and the cartoons that have insulted the Prophet”. He did not mention cartoons published by French magazine Charlie Hebdo that led two gunmen to slaughter 12 people at its offices this week, but said the “authors of offensive books and cartoons that were insulting to the Prophet” are among Islam’s enemies. Nasrallah was indirectly re- ferring to The Satanic Verses by Salman Rushdie, against whom Iran’s Ayatollah Khomeini issued a fatwa, or religious order, to have him killed. Nasrallah also alluded to a video entitled The Innocence of Muslims, which was distributed online in 2012 and caused an uproar among Muslim communities all over the world. A series of cartoons showing Prophet Muhammad were published in a Danish newspaper in 2005 and Charlie Hebdo was among the media that reprinted them. Hezbollah joined a string of other Islamist parties and movements and called for demonstrations against those cartoons. Meanwhile, Nasrallah also said France “exported” militants to the region. Hezbollah has sent thousands of п¬Ѓghters into neighbouring Syria to aid President Bashar alAssad in a civil war in which he claims that all his opponents are foreign-backed jihadists. The regime has frequently singled out France for backing the opposition. Many members of jihadist groups in Syria are Westerners, from countries including France, the United States and Britain. Cherif Kouachi, one of the suspects in the Charlie Hebdo massacres, was involved in a Paris network that helped transport radical Muslims to Iraq to join Al Qaeda’s п¬Ѓght against US forces at the height of their intervention. US trains Iraqis for house-to-house п¬Ѓght AFP Baghdad A An American military trainer observes Iraqi soldiers during an exercise on approaching and clearing buildings at the Taji base complex. American forces вЂ�building pressure’ on Islamic State Reuters Washington U S efforts against Islamic State militants in Iraq are “a drumbeat, a steady building pressure” on several fronts that will ultimately enable Iraqi forces to launch a counteroffensive at a time of their choosing, the top US military officer said. General Martin Dempsey, chairman of the Joint Chiefs of Staff, said U.S. forces were not sitting idly in the key Iraqi cities of Baghdad or Arbil waiting until spring to launch an offensive but were actively working to weaken IS in several areas. “When you ask me what are the prospects for a spring offensive, we’re working with Iraqis, military and civilian leaders, to determine the pace at which we will encourage them and enable them to do a counter-offensive,” Dempsey said. “But I want to make sure I also highlight the fact that this isn’t about ... waiting till the spring to do anything.” “This is a drumbeat, a steady building pressure on ISIL along eight or nine lines of effort: counter-п¬Ѓnancing, counter-foreign п¬Ѓghters, counter-message as well as the military operations,” he added, using another acronym for IS. Dempsey spoke to reporters on Thursday after meeting with his Israeli counterpart, Lieuten- ant General Benjamin Gantz, to discuss regional security and military co-operation as Gantz winds up his tenure as the chief of the Israel Defence Forces general staff. Dempsey said Iraq would initiate a counter-offensive against Islamic State when Baghdad felt it was ready to conduct the necessary military operations to recapture territory and follow it with humanitarian and reconstruction efforts. “In the meantime we’re keeping steady pressure on and we’re building their capacity,” Dempsey said. He said several hundred Sunni tribesmen had been incorporated into Iraqi Security Force, a sign the mainly Shia government was trying to become more inclusive. He also said several thousand troops had been newly trained. The chairman said US forces were looking for ways to help Iraqis cope with improvised explosive devices, roadside bombs and houses rigged with explosives. “There’s some things that we can do to help the Iraqi Security Forces reduce their casualties as they go forward and we’re discussing that with them,” he said. The Pentagon said this week that US forces have hit or damaged some 3,222 IS targets in Iraq and Syria since August. US military officials also said the department is looking into complaints that civilians may have been killed in US air strikes. team of camouflage-clad Iraqi soldiers lines up near the door of a one-storey house north of Baghdad with rifles ready, preparing to enter and search it. For now, there are no militants inside, and American and Iraqi instructors are on hand to tell them how to position themselves, where to look when they enter and how to hold their Kalashnikov assault rifles. But these are skills the soldiers, who are some two weeks into a six-week training programme at the massive Taji base complex, may soon need to employ against foes who shoot back. The Islamic State (IS) militant group led a sweeping militant offensive last June that overran large areas north and west of Baghdad, and multiple Iraqi divisions collapsed during the assault. A US-led coalition is carrying out air strikes against IS, and is also providing training aimed at rebuilding the Iraqi forces and readying them to п¬Ѓght. The aim is to eventually train 5,000 federal soldiers and Kurdish п¬Ѓghters at п¬Ѓve sites every six to eight weeks—a tight timeline, especially for newly recruited troops. There are four Iraqi battalions, of roughly 400 soldiers each, being instructed in infantry skills at Taji by a combination of US and Iraqi trainers. Around 80 more are receiving tank training. Most are recent recruits who volunteered after the IS-led offensive began, knowing that they would likely see combat. Before this course, they received just a few months of basic training. Now they are being trained for the house-to-house п¬Ѓghting that will be necessary to recapture the cities, towns and villages that IS holds. The recruits will have to make split-second distinctions between militants and civilians if they are to avoid casualties among residents whose support will be vital in the long run if IS is to be defeated. Knowing how to approach, enter and clear a building are key skills that they will need. The exercise begins with small teams of Iraqis rushing across open ground, going prone to avoid simulated enemy п¬Ѓre, then moving to take cover behind makeshift obstacles, including wooden doors. The training programme is still in its infancy and some improvisation is necessary. To mimic the sound of gunп¬Ѓre as the exercise unfolds, one American soldier has the unenviable task of repeatedly hitting a piece of metal with a hammer. When they reach cover, the Iraqi soldiers are supposed to ready their assault rifles to п¬Ѓre— saying “bang” to simulate shooting, as they are not using blank ammunition—and then put the safeties back on before advancing again. The second step is periodically forgotten, and US instructors yell “put your safety on” at the errant trainees, sometimes accompanied by profanity. The Iraqi soldiers then reach the building they will clear and “stack”, lining up one behind the other along the wall with rifles ready, before moving inside. The exercise also includes simulated casualties, with some soldiers being declared “wound- ed” so others can practise battleп¬Ѓeld п¬Ѓrst aid. “It’s really taking a lot of the training from throughout the last couple weeks and kinda combining them into an event that... brings it all together,” says Captain David Neveau. The units training at Taji have a shortage of experienced officers and non-commissioned officers, so they are being selected from the ranks during the course. “From a newly formed unit, they don’t really have a bunch of NCOs and a bunch of officers, so we’re trying to pick leaders from the group,” Neveau says. There is training for officers focusing on leadership, but another aim is to spread responsibility down the ranks. We “actually have some of the commanders off to the side... letting some of the soldiers take their squads and teams through,” says Command Sergeant Major Tony Grinston, who is overseeing the training programme. “We’re just trying to take small steps so that when... a leader goes down, the mission continues,” he says. But the key question is whether the Iraqi army will continue the training after the course is over—something that US soldiers say was not done after American forces departed in 2011. “If you... teach them and then stopped doing it for a year or six months, you can’t expect them to be good at it,” Grinston says. Command Sergeant Major Tony Grinston speaks to Iraqi soldiers. Gulf Times Saturday, January 10, 2015 5 ARAB WORLD Time is running out for Libya peace talks: UN AFP Tripoli T he UN called yesterday for Libya’s warring factions to resume peace talks “before it is too late” after its envoy to the violence-plagued state met with rival camps. UN envoy Bernardino Leon, who held talks for the п¬Ѓrst time with retired General Khalifa Haftar, said “time was running out” to tackle the country’s political and security crises. “Libyans need to unite and work towards solving their differences if they want to save their country,” Leon was quoted as saying in a statement issued yesterday, a day after his meetings. Leon also met with representatives of Libya’s internationally recognised government in Tobruk and with rival officials in Tripoli, the statement added. Three years after dictator Muammar Gaddaп¬Ѓ was toppled and killed in a Nato-backed revolt, Libya is awash with weapons and powerful militias, and run by rival governments and parliaments. Haftar, a controversial п¬Ѓgure, launched a May offensive against mainly Islamist п¬Ѓghters in control of the second city of Benghazi. He was initially accused by Libya’s internationally recognised government of carrying out a coup but relations have since thawed as Haftar’s п¬Ѓghters and state forces jointly battle militias. Libya’s parliament, which took refuge in the remote east after п¬Ѓghters from the predomi- nantly Islamist Fajr Libya militia stormed the capital in August, has asked Haftar and other retired officials to be officially reinstated into the army. With no early end in sight to the violence, the UN has postponed peace talks that were due to take place on Monday. Also yesterday, a rocket at- tack targeted the Tripoli headquarters of a private television station close to Islamist factions, causing damage but no casualties. Al Nidaa television said its ofп¬Ѓces had been hit by two rocketpropelled grenades but vowed that the attack would not force the channel off air. UN conп¬Ѓrms rebels killed hundreds in South Sudan AFP Juba R ebels in South Sudan slaughtered at least 353 civilians in April last year, including people sheltering in a mosque, hospital and a United Nations base, UN rights investigators said yesterday. The report is the п¬Ѓrst detailed account of two incidents that have highlighted a pattern of gross abuses and atrocities committed during the yearold civil war in the world’s youngest nation. The UN also noted that nearly nine months after the events, “no perpetrator has been held accountable” for the killings, which it said “may amount to war crimes”. “Victims were deliberately targeted on the basis of their ethnicity, nationality or perceived support for one of the parties to the conflict” In the April 15 attack on the northern oil town of Bentiu, fighters backing South Sudan rebel leader Riek Machar murdered at least 287 civilians sheltering in a mosque, many of them traders and their families from neighbouring Sudan’s Darfur region. “They lined up about 20 Darfurians, who were tied with their clothing... and told them to run to save their lives,” the report said. “When they ran, soldiers shot at them outside of the gate.” Later that day, 19 civilians were killed in the town’s hospital, UN investigators said. Fighters also took to the radio urging rival groups to be forced from the town and for men to rape women from the rival tribe. “Victims were deliberately targeted on the basis of their ethnicity, nationality or perceived support for one of the parties to the conflict,” the UN said in a 33-page report. Two days later on April 17, in the eastern town of Bor, a gang of heavily-armed men marched on the UN base, which hundreds of civilians had fled to for protection. The “mob forcibly entered the protection site and went on a rampage of killing, looting and abductions”, the report by the UN peacekeeping mission in South Sudan (UNMISS) said, adding the assault left at least 47 dead—including 11 children, one just eight months old—and was likely to have been “planned in advance”. The attack on Bentiu and the UN base in Bor are two of the most high proп¬Ѓle massacres in a long list of atrocities carried out in the more than a year-long civil war. The UN report said that while the war has been marked by “gross abuses” the two attacks “seemed to represent the nadir of the conflict”. At least 353 civilians were killed and another 250 were wounded in the two attacks, the UN said. No overall death toll for the war has been kept, either by the government, rebels or the United Nations, although the International Crisis Group says it estimates that at least 50,000 people have been killed. Some diplomats suggest it could be double that п¬Ѓgure, while hunger and disease have killed thousands more. Fighting broke out in South Sudan in December 2013 when President Salva Kiir accused his sacked deputy Machar of attempting a coup. The п¬Ѓghting in the capital Juba set off a cycle of retaliatory massacres across the country, pushing it to the brink of famine. Both government forces loyal to Kiir and rebels loyal to Machar continue to п¬Ѓght, despite numerous ceaseп¬Ѓre deals. Residents walk in a damaged neighbourhood of Aleppo yesterday. 2,100 died in Syria jails last year, says monitor Agencies Beirut A t least 2,100 people died in Syrian prisons last year and the bodies of many showed signs of torture, a monitoring group said yesterday, quoting the families of deceased detainees. The British-based Syrian Observatory for Human Rights said it believed the true п¬Ѓgure to be much higher but had only reported cases where families had received a corpse or a death certiп¬Ѓcate from a prison. “The prisons tell the families that the prisoners died of natural causes, such as a heart attack,” Observatory head Rami Abdel Rahman said. UN investigators said in March there were suspected war criminals in Syrian military units and security agencies as well as in the insurgent groups п¬Ѓghting them in the country’s civil war. They said they were investigating evidence of torture, killing and starvation in Syrian prisons and that the heads of intelligence branches and detention facilities were on a list of potential suspects. More than 76,000 people were killed in the war in 2014, the Observatory said, and the UN says 200,000 have died since the conflict started. In January 2014, former war crimes prosecutors commissioned by Qatar said they had “clear evidence” showing the systematic torture and killing of 11,000 detainees in Syrian jails from a trove of photos supplied by a Syrian military police photographer. The Observatory also said yesterday pro-regime militia have repelled an incursion by Al Qaeda on two Shia Muslim villages in the north of the country. The villages of Nubol and Zahraa in war-battered Aleppo province had been under siege by Al Nusra Front, Al Qaeda’s Syria branch, and other Islamist rebels for a year and a half. On Thursday, “Al-Nusra Front’s п¬Ѓghters entered the villages on seven tanks”, said the Observatory. “It was a major, simultaneous attack,” said the monitoring group, which relies on a broad network of activists and doctors across the country for its reporting. The National Defence Force, a pro-government militia, repelled the п¬Ѓghters with the Syrian air force providing cover, the monitor said, adding that the militants withdrew. At least 25 people were killed, including 14 militants, it said. The militants left behind three tanks, the Observatory said quoting witnesses. Al Nusra Front had launched an offensive in November aimed at seizing Nubol and Zahraa. The villages are the last regime bastions in the northwest of Aleppo province. Syria’s conflict began as a pro-democracy revolt that later morphed into a brutal civil war after President Bashar al-Assad’s regime unleashed a brutal crackdown against dissent. Through the course of the war, organisations such as Al Nusra Front and Islamic State have emerged, seizing large swathes of territory across the country. Prominent opposition figure Moaz al-Khatib said yesterday he had turned down an invitation to a Moscow meeting with Syrian government officials, in a further blow to Russian efforts to find a solution to the conflict. “We decided to decline ... this is because the conditions we think are necessary to ensure the success of the meeting are not available,” the moderate Islamist said in an online post. When he headed the Western-backed Syrian political opposition in 2012, Khatib called for negotiations with Assad to pave the way for a handover of power. Russia, one of Assad’s top allies, had extended invitations to senior opposition п¬Ѓgures within Syria and outside to meet Syrian government representatives in late January. Tunisians rally as IS says journalists slain AFP Tunis A Demonstrators mourn during the rally in Tunis yesterday. round 300 people demonstrated in central Tunis yesterday in solidarity with two journalists the Libyan branch of the Islamic State (IS) group claims it has executed. “We are all Sofiene, we are all Nadhir,” read placards held by the demonstrators, many of them young journalists, in reference to Sofiene Chourabi and Nadhir Ktari. On Thursday, the IS branch in Libya issued a statement saying the pair, who went missing there in early September, had been executed because they had “sowed corruption in the land.” But echoing official statements, the head of the National Syndicate of Tunisian Journalists, Neji Bghouri, said the “news has still not been confirmed” and called on the government to uncover the truth. “We chose to be journalists, and we know it is difficult. We have chosen freedom and we will carry on,” he said. “We are all Sofiene, we are all Nadhir,” read placards held by the demonstrators” Sami Ktari, father of one of the two, called on the authorities to “take the matter seriously”. Newly elected President Beji Caid Essebsi met the families of the two men yesterday but has not made any public statement about the case. But Foreign Minister Mongi Hamdi said the authorities are following the case “minute by minute”. Until such time as the claim of their deaths is confirmed, he said “we hope that they are false.” Hamdi expressed frustration on Thursday over failed efforts to secure the two men’s release, saying “we do not know who kidnapped them, why they kidnapped them or where they are.” Chourabi, an investigative journalist and blogger who was active during Tunisia’s 2011 revolution, and Ktari, a photographer, went missing in the Ajdabiya district of eastern Libya on September 8. Libya has been engulfed by chaos since the 2011 Natobacked uprising that toppled and killed veteran dictator Muammar Gaddafi, with two rival governments and a host of militias now vying for territory. IS has seized swathes of Iraq and Syria, declaring a “caliphate” and committing widespread atrocities, including the beheading of Western hostages. 6 Gulf Times Saturday, January 10, 2015 AFRICA POLITICS HEALTH CRIME SECURITY BLAST Gambia’s ruler again reshuffles government School programme to treat parasitic worms UN demands probe into albino girl abduction Somalia locks down capital ahead of East Africa summit UN peacekeepers wounded in attack Gambia’s President Yahya Jammeh has reshuffled his government for the second time in less than two weeks in the wake of a foiled coup bid. Attorney general and Justice Minister Basirou Mahoney was replaced by Minister of Higher Education Aboubacar Senghore, who also keeps his previous portfolio. The general secretary at the presidency, Kalilu Bayo, was replaced by his deputy Lamin Nyabally, while a new post of presidential spokesman was handed to Lamin Manga, hitherto the director general of state radio and television. The previous reshuffle in the small west African country, ruled by Jammeh for 20 years, took place on Monday and concerned the ministers of foreign affairs, information and communication, and transport and public works. Ethiopia is launching a national initiative in schools this year to treat children at risk of infection from parasitic worms, mirroring a programme in Kenya which has improved child health and school attendance, a charity involved said. Ethiopia aims to treat at least 80% of children at risk from parasitic worms by 2020, Evidence Action said. The Horn of Africa nation, ravaged by famine in the 1980s, has received praise for the way it has improved its national health system. The country of about 96mn people has more than 10mn children at risk for schistosomiasis, caused by a parasite found in contaminated lakes or other freshwater sites, and 18mn children at risk from soil-transmitted helminths, parasitic worms. Tanzania must find an albino girl kidnapped last month, the country’s top UN official said yesterday, expressing “outrage” at a series of attacks on albinos, whose body parts are sold for witchcraft. Kidnappers armed with machetes seized four-year-old Pendo Emmanuelle Nundi on December 27 from her home in the northern Mwanza region. Police have since arrested 15 people, including the girl’s father and two uncles. “The government must conduct a full investigation into the matter and arrest the perpetrators,” said UN country chief Alvaro Rodriguez on state television, after visiting the worst affected regions in northern Tanzania. At least 74 albinos have been murdered in the east African country since 2000. Somali soldiers yesterday put large parts of the capital Mogadishu under lockdown ahead of the first meeting of a regional east African trade bloc in the war-torn nation for over two decades. “Security has been tightened because of the IGAD (Intergovernmental Authority on Development) delegation,” said Daud Aweys, spokesman for the presidential palace, as representatives began to arrive for one of the largest and highest profile meetings seen in Mogadishu for years. Ministers from Djibouti, Ethiopia, Kenya and Uganda - who have contributed troops to the 22,000-strong African Union force in Somalia - are expected at today’s IGAD talks. Sudan and South Sudan are also believed to be sending representatives. Seven UN peacekeepers were wounded by a blast that hit their vehicle near the airport in the northern Malian town of Kidal yesterday, the latest in a string of attacks on foreign forces. A witness said the troops involved were Senegalese. An investigation was underway to establish if the vehicle hit a land mine or another kind of explosive device, the UN mission said. Peacekeepers have deployed in the West African country since mid-2013 but militants driven from its desert north two years ago by French forces have stepped up ambushes and bomb attacks on UN and government troops. France has withdrawn some troops from Mali to focus on a broader, Sahel-wide security operation against militants. Thousands to test Ebola vaccines Millions of doses of the vaccines are expected to be available by the middle of the year, and tens of millions by 2016 AFP Geneva H uman tests of two possible Ebola vaccines have proven safe and now tests to measure their efficiency will begin within weeks in the three west African countries ravaged by the deadly virus, the World Health Organisation (WHO) said yesterday. “These trials are about to begin for the two lead vaccines,” WHO assistant director general Marie-Paule Kieny told reporters, adding that the vaccines would be tested on tens of thousands of people across Guinea, Liberia and Sierra Leone. The Phase III testing to ensure the vaccines actually provide protection against the virus that has killed 8,259 people in the three African countries is set to begin in Liberia by the end of the month, she said. Separate tests are scheduled to start in Sierra Leone and Guinea in February, she added. There is no licensed treatment or vaccine for Ebola, and the WHO has endorsed rushing potential ones through trials in a bid to stem the epidemic. The two potential vaccines that have been undergoing Phase 1 safety tests on humans UN helps restart measles vaccinations UN helps restart measles vaccinations The UN children’s agency said yesterday it was helping Ebolabattered countries in west Africa resume measles immunisations at a peak transmission time in the region. Measles transmission traditionally peaks in west Africa between December and March. The disease can be fatal. This comes at a time when the Ebola crisis has claimed more than are ChAd3, made by Britain’s GlaxoSmithKline, and VSV-EBOV, manufactured by the Public Health Agency of Canada and developed by Merck. Tests of the two potential vaccines have been conducted on volunteers in a range of countries, including Switzerland, Mali, Gabon, Britain, Germany, Canada and the US. Both have shown to have “an acceptable safety proп¬Ѓle,” Kieny said, relaying the п¬Ѓndings of a high-level meeting of policy makers, researchers, regulators and vaccine developers in Geneva Thursday. “That is really good news,” she said, acknowledging that “the world is waiting for us to get these vaccines ready and out to the people with this virus raging through their communities.” Millions of doses of the vaccines are expected to be available by the middle of the year, and tens of millions by 2016, Kieny said. 8,200 lives and overwhelmed health care systems in Liberia, Sierra Leone and Guinea which are at the centre of the epidemic. These countries account for almost all the Ebola deaths and cases worldwide. Unicef said a measles outbreak was declared in Guinea early last year before the Ebola crisis, with the number of confirmed measles cases growing almost fourfold from 59 in 2013 to 215 last year. The three African countries struggling to stop Ebola have chosen radically different approaches to testing whether the vaccines will actually protect humans against the deadly virus. Kieny said Liberia, where the outbreak has proven most fatal so far causing nearly 3,500 deaths, planned to test both vaccines against a third control vaccine, with around 9,000 people receiving each. Guinea, meanwhile, aimed to test one of the vaccines using a so-called “ring study” approach that was used to eradicate smallpox, in which the entire village or community surrounding each infected person is vaccinated. Kieny said that Guinea planned to offer 4,500 people immediate vaccination and another 4,500 later. Sierra Leone plans to test one of the vaccines on around 6,000 people, who will receive their injections in a randomised order. World Health Organisation assistant director general Marie Paule Kieny speaking during a press conference at the WHO headquarters in Geneva yesterday. A peasant from the village of Selbo, in northern Burkina Faso, gesturing near grass he planted to help stop the advance of the Sahara desert. Faced with the advancement of the Saharan desert, a result of world climate change, the peasants of Burkina Faso are fighting with little means but certain success to stop the advancement of the dunes by planting shrubs. Farmers beat back the desert in Burkina Faso, п¬Ѓeld by п¬Ѓeld By Romaric Ollo Hien/AFP Rim, Burkina Faso I n Burkina Faso, what was once stony semi-wasteland is now covered in verdant crop п¬Ѓelds, rescued from relentless desertiп¬Ѓcation. Using simple agricultural techniques largely spread by word-of-mouth, this tiny West African state has rejuvenated vast stretches of scrubby soil over the past 30 years, proving they are not doomed and giving hope to other vulnerable areas in the region. One success story is Rim, a peaceful hamlet of about 3,000 people in the country’s north, close to the border with Mali. Below the village as far as the eye can see, tall stalks groan under the weight of fat cobs of “baniga”, a white sorghum grown in this part of the country. “This place was a desert. But the people succeeded in regreening the region,” said Amanda Lenhardt, a researcher with Britain’s Overseas Development Institute (ODI), who authored a report on farming developments in Burkina Faso. Called “zai” or “stone contour”, the low-cost techniques were devised from some of the region’s traditional farming techniques, nudged along with some outside help. They have gained favour in different parts of the Sahel region - a semi-arid band that spans the continent with the Sahara Desert to the north and African savannah lands to the south - but have seen particular success in Burkina Faso. A farmer collecting ears of Nerica rice (New rice for Africa) near Fada Ngourouma, in the region of the dam of Bagre, eastern Burkina Faso. In Rim, as in other parts of the country’s north, farmers now swear by “zai” after again producing food on land considered lost to agriculture - the occupation of at least 80% of the population. The technique consists of building little stone barriers to trap runoff water and ensure it seeps into the ground, preventing erosion, agronomist Paulin Drabo explained. Holes for planting are then dug next to the stones and packed with fertiliser, which together with the improved hydration, helps crops sprout up quickly. “Before, when we planted on bare ground, we harvested nothing. Now, with the technique they showed us, the meal grows well,” Sita Rouamba, a female farmer, said happily. The shift to sustainable techniques has also expanded the supply of arable land. In the past, farmers scrambled for plots on the banks of rivers, where the soil is most fertile. Now they can grow food “on any kind of soil, no matter how degraded”, said 38-year-old Souleymane Porgo, a hoe slung over his shoulder. Farm yields are also vastly improved. “At the moment, my store is full of grain I haven’t touched. I also have plenty of beans,” Souleymane’s father, Saidou, who heads a family of 11 children and several grandchildren, said. His yields have made him a man of means, with goats, a motorbike and cattle, which can be sold to pay for food if a harvest fails. “All of this helps me properly care for my family,” Saidou said with pride. Around 30 producers in Rim have converted to “zai” farming, out of around 700,000 na- tionwide, said Joel Ouedraogo, director of the Federation Nationale des Groupements Naam, a non-governmental organisation that works with farmers. Between 200,000 and 300,000 hectares of barren land - an area roughly the size of Luxembourg - have been rehabilitated, he estimated. In a region threatened by the advancing Sahara sands, the results are impressive, the ODI’s Lenhardt said. Burkina Faso shows it is “possible” to combat climate change, said the Canadian, who credits the rapid adoption of the new techniques to word-of-mouth. Seen from the sky the change is dramatic. The parched, ochre-coloured stretches are the areas where “zai” farming has yet to take root. The green tracts in between are the newly fertile zones. Nutrition is always a concern in Burkina Faso but the bid to beat back the desert goes beyond food security alone. Like many developing countries the impoverished former French colony is grappling with a rural exodus, which is straining resources in urban centres. The better the prospects from farming the lesser the lure of city life for young people, who account for 60% of the population of 17mn. Souleymane Porgo represents a new generation of young villager, who sees his future on the land. Souleymane left Rim to seek his fortune in neighbouring Ivory Coast seven years ago. Six years after being wooed back by the “zai” revolution, the father of four is home to stay. African moon bid seeks boost for spacecraft blast off AFP Cape Town A n ambitious project to put an African spacecraft on the moon is sputtering on the launchpad as it struggles to secure an Internet crowdfunding lift off. The Africa2Moon Mission has drawn just $13,000 (11,000 euros) of the initial target of $150,000 with a countdown of only three weeks left before the appeal closes. In contrast, a private British moon project - Lunar Mission One - rode the Internet crowdfunding phenomenon to reach its target of nearly a million dollars ahead of deadline last month. The apparent lack of interest may come as little surprise to those for whom Africa conjures up disease and poverty rather than science and space exploration. But countering that view of the continent is one of the underlying aims of the project by the Foundation for Space Development, which says it will go ahead even if the initial target is not reached. “We get a lot of Afro-pessimism,” CEO Jonathan Weltman told AFP. “Anything positive, aspirational or leading edge is treated with scepticism. “But I have faith that Africa can do this, without a doubt.” The non-proп¬Ѓt group was cofounded in 2009 by the head of the space lab at the University of Cape Town, Peter Martinez, who is also chairman of the South African Council for Space Affairs, the national regulatory body. The mission is to see an Africanengineered rocket take an Africanbuilt module to the moon. The aim is to inspire wider interest in the study of science and technology among young Africans while stemming the “braindrain” of highly qualiп¬Ѓed graduates to the developed world. The world’s poorest continent recently scored a major international scientiп¬Ѓc coup with the decision in 2012 to build the bulk of the world’s biggest telescope in South Africa. The multi-nation Square Kilometre Array Radio telescope (SKA) will investigate the Big Bang, peek at black holes and uncover new frontiers—possibly even life beyond Earth - by peering further into the universe than ever before. SKA site bid manager Adrian Tiplady said the telescope project proved “there’s deп¬Ѓnitely the skills and talent out there and a huge amount of interest as well”. The Africa2Moon project “certainly is feasible,” he told AFP. “There is the expertise to design, develop and launch such a vehicle.” South Africa is the most developed economy on the continent and under the former apartheid regime had nuclear weapons and a ballistic missile programme, but the foundation is pushing for an all-inclusive African effort. The appeal for $150,000 is to cover the п¬Ѓrst phase, which aims to п¬Ѓnalise a feasibility report by the end of November and present it to an international conference. Only then will it be possible to estimate the full cost of the mission, Weltman said. He admits to disappointment - and some puzzlement - over the failure so far of the hoped-for crowdfunding boost for Africa’s rocket to the moon. “The industry and media response has been overwhelmingly positive and supportive,” Weltman said. “The donor response has been slower than we hoped but has picked up dramatically at the start of this year and we are optimistic about our target being reached, if not by the end of the current crowdfunding campaign, then through other funding sources in the п¬Ѓrst quarter of the year.” Apart from Afro-pessimism, a lack of publicity on the project - whose website is http://africa2moon.developspacesa.org/ - may have contributed to the funding shortfall. Gulf Times Saturday, January 10, 2015 7 AMERICAS US court overturns ruling that blocked Keystone pipeline Reuters Washington T he Nebraska Supreme Court yesterday removed one of the last hurdles for President Barack Obama to settle the fate of the politically charged Keystone XL oil pipeline, delivering a closely watched decision on an issue that could help deп¬Ѓne his second term. After months of deliberation, the court allowed a route for the pipeline to cross the state, shifting the debate over TransCanada Corp’s controversial line fully to Washington, where Republicans now in control of Congress are seeking to force its п¬Ѓnal approval after more than six years of acrimony with the White House. Meanwhile, the US House of Representatives approved the Republican measure yesterday authorising construction of the Keystone XL oil pipeline. Lawmakers voted 266 to 153 to pass the bill that circumvents the Obama administration, which over the past six years has yet to issue a decision on whether to greenlight the mega-project that would transport crude oil from Alberta, Canada to reп¬Ѓneries on the US Gulf Coast. The Senate is expected to take up a Keystone bill for debate next week. In Nebraska, the legal question State Dept studying Nebraska ruling on Keystone The US State Department is studying a decision by the Nebraska Supreme Court that denied a challenge over the route of the proposed Keystone XL pipeline and the White House will wait for that process to continue, a spokesman said yesterday. “The State Department is examining the court’s decision as part of its process to evaluate whether the Keystone XL Pipeline project serves the narrowly focused on whether the governor had a right to bless a pipeline route, but the state supreme court has had the matter since February and the 64-page ruling reflects how contentious it has become. The court said it could not decide whether legislation backed by former governor Dave Heineman wrongly gave him authority to grant TransCanada a pipeline route in 2012. But the court was deadlocked, which amounted to ruling in the company’s favour. “(B)ecause there are not п¬Ѓve judges of this court voting on the constitutionality of (the legislation), the legislation must stand by default,” the seven-judge panel said in its ruling. The pipeline debate has energised environmentalists who national interest. As we have made clear, we are going to let that process play out,” White House spokesman Eric Schultz said in a statement. Regardless of the court ruling, Schultz said President Barack Obama would veto a congressional bill requiring approval of the controversial project from Canada. “If presented to the president, he will veto the bill,” Schultz said. see it as an emblem of fossil fuel dependence and energy interests who see a Canada-to-Texas pipeline system as a tool to spur energy production in North America. President Barack Obama has said he could not endorse a project that meaningfully worsens climate change and the issue could become one of the more controversial of his second term. But the issue may well be settled in the Congress where Republicans have vowed to push the issue over Obama’s threatened veto. “Today’s ruling provides the perfect opportunity for the President to change his unproductive posture on this jobscreating infrastructure project,” said Senate Majority Leader World must respond to Paris attack, says Harper Reuters Delta, British Columbia T he deadly attacks in Paris serve as a vivid reminder that jihadists are at war with those they disagree with, and the world must confront them, Canadian Prime Minister Stephen Harper said on Thursday. “The international jihadist movement has declared war. They have declared war on anybody who does not think and act exactly as they wish they’d think and act,” Harper told reporters when asked about Wednesday’s attack. “We may not like this and wish it would go away, but it’s not going to go away, and the reality is we are going to have to confront it.” Harper spoke as a manhunt was underway in France for two brothers suspected of being the Islamist gunmen who killed 12 Stephen Harper people in Wednesday’s attack on a satirical weekly newspaper in Paris. Harper said any doubts in Canada about the reality of threats posed by such extremists should have vanished on Oct. 22. That was the day when a radicalised Canadian gunman killed a soldier at the national war memorial and then stormed the Parliament building. The Ottawa attack underscored fears that Canada, a close ally of the United States in its campaign against the Islamic State militant group, had been targeted in a reprisal. Other manifestations of the threat posed by militant Islam in Canada included the case of the so-called “Toronto 18,” Harper said, referring to the 2006 arrests of a group of men charged with planning attacks on Toronto-area targets in a plot to get Canada to withdraw troops from Afghanistan. Canada’s security agencies have been able to prevent most attacks by extremists from coming to fruition, Harper said. “But the fact of the matter is this recent development, the emergence of the so-called Islamic State, its sudden control of a vast territory with vast amounts of п¬Ѓnancial resources, has escalated this to a whole new global level,” he added. Re-enactment Mitch McConnell, a Republican from Kentucky. The court’s decision allows the US State Department to decide whether the pipeline meant to carry Canadian oil sands fuel would be in the national interest, a necessary step for the crossborder energy project. Environmentalists oppose Keystone since it could help expand oil sands development and President Barack Obama has said he will weigh whether the project might worsen climate change. Officials had said they could not test whether the project is in the national interest before the Nebraska Supreme Court ruled. Yesterday’s decision cleared the way. Three members of the Nebraska panel said they believed the landowners who initially challenged the legislation did not do so properly, and declined to offer an opinion on whether it was constitutional. The other four judges said they believed the law, which allowed the governor to bypass regulatory procedures and approve the route himself, unconstitutional. But the court said it required п¬Ѓve judges to agree in order to rule on whether a legislative enactment was constitutional, and left the law in place by default. US teen who tried to join IS hit with terror charge AFP Washington A US teen arrested at a Chicago airport while trying to join up with Islamic State п¬Ѓghters in Iraq and Syria, has been formally charged, federal prosecutors said yesterday. Mohamed Hamzah Khan, 19, faces one count of “attempting to provide material support to a foreign terrorist organisation,” a charge that carries a maximum penalty of up to 15 years in prison and a $250,000 п¬Ѓne. No date has yet been set for Khan’s next court appearance, according to the statement from the Justice Department, which added that the investigation is continuing. The Illinois teenager was arrested October 4 at Chicago’s O’Hare airport with a roundtrip ticket to Istanbul. US Vice-President Joe Biden greets US President Barack Obama upon arrival at McGhee Tyson Airport yesterday in Alcoa, Tennesee. Obama is in Tennessee to speak on new proposals for higher education accessibility. At left is Biden’s wife Jill Biden. Radical imam Abu Hamza jailed for life Agencies New York A measles outbreak that began at Disneyland may have spread to others in Orange County, Calif., where health officials warned the public on Thursday about possible exposure. Orange County health officials confirmed two more unvaccinated children - who were all old enough to be vaccinated - contracted measles between December 15 and December 20 at the amusement park. On Wednesday, California’s Department of Health reported nine confirmed cases of measles, of which one case was in Orange County. But others could have been exposed to measles at health facilities in the area while the three children were infectious, said Orange County Health Care Agency spokeswoman Nicole Stanfield. At least three other cases have been confirmed, bringing the county total to six. Of the three recently diagnosed, all are adults; one was unvaccinated, one was partly vaccinated, and one was fully vaccinated. None of the adults were hospitalised, Stanfield said.“We expect more cases to appear,” she said. Brief interactions with those who have measles offer a low risk of infection, but officials are asking those who were at St Joseph Hospital, CHOC Children’s Hospital and Quest Diagnostics Laboratory in Orange to watch for symptoms from 7 to 21 days after the possible exposure. Symptoms include a rash, fever, cough and red, watery eyes, according to the Orange At least 26 US kids die of flu in вЂ�bad’ season AFP Miami A R adical imam Abu Hamza al-Masri was sentenced to life in prison yesterday, eight months after he was convicted of federal terrorism charges in New York. US District Judge Katherine Forrest in Manhattan imposed the sentence on the one-eyed, handless Abu Hamza, whom jurors had found guilty of providing a satellite phone and advice to Yemeni militants who kidnapped Western tourists in 1998, leading to the deaths of four hostages. The defendant was also convicted of sending two followers to Oregon to establish a militant training camp, and dispatching an associate to Afghanistan to aid Al Qaeda and the Taliban against the United States. “Abu Hamza was not convicted for his words,” federal prosecutor Edward Kim told Forrest prior to the sentencing. “His crimes truly spanned the globe, from Yemen to Afghanistan to the United States.” Abu Hamza, 56, had gained notoriety for his incendiary sermons at the Finsbury Park Mosque in London, which US and UK authorities said helped inspire a generation of militants, including the would-be shoe bomber Richard Reid. “I still maintain my innocence,” Abu Hamza told the judge prior to being sentenced. He asked that corrections officials arrange to properly treat his disabilities, and that any prison time not constitute “a backdoor for torture.” Defence lawyers had urged that Abu Hamza be sentenced to Abu Hamza al-Masri a term shorter than life in prison. They also said any sentence should take into account their client’s need as a double amputee for specialized medical care, pressing for Abu Hamza to be sent to a medical facility instead of a maximum security prison. Prosecutors, in contrast, called Abu Hamza a “global terrorist leader who orchestrated plots around the world.” Abu Hamza, whose real name is Mustafa Kamel Mustafa, testiп¬Ѓed in his defense at trial. He denied he sent anyone to Oregon or Afghanistan and claimed he acted as an intermediary during the Yemen kidnapping in search of a peaceful resolution. He also said for the п¬Ѓrst time that he lost his hands in an accidental explosion in Pakistan while working two decades ago as an engineer, contradicting many reports that he lost the limbs while п¬Ѓghting the Soviets in Afghanistan in the 1980s. Abu Hamza has been known for having used a hook in place of his missing right hand. He spent eight years in prison in Britain for inciting violence before his 2012 extradition to the United States. Disneyland measles may have spread, officials warn Tribune News Service Washington Re-enactors of the Battle of New Orleans march back to their camp from the re-created battlefield on the 200th anniversary of the battle in Chalmette, Louisiana on January 8. Some 1,500 people gathered in the New Orleans suburb of Chalmette to re-enact and commemorate the bicentennial of the final battle of the War of 1812, when American forces led by Andrew Jackson routed the British. Obama arrives in Tennesee County Health Care Agency. Those who have not had measles or the vaccine are at a higher risk for the disease. Other measles cases in the state have been reported in Alameda, Riverside and San Diego counties, as well as the city of Pasadena, according to the California Department of Public Health. Two additional park visitors who were diagnosed as having measles live in Utah. Of those confirmed cases, one was vaccinated for measles, six were unvaccinated, and two were too young to be vaccinated, state officials said. Measles had mostly disappeared in the United States, but there has been a recent upswing in confirmed cases. In California, Orange County had a large share of last year’s conп¬Ѓrmed cases, with 22 of the 62 people diagnosed with measles. particularly bad flu is sweeping the United States, killing 26 children so far this season and nearly doubling hospitalisations among people over 65 in the past week alone, officials said yesterday. The reason is the predominant strain of flu this year is H3N2, a variety that has shown itself in prior years to be more virulent than other kinds. Even more, the vaccine that is supposed to protect against the annual flu is missing its mark because two-thirds of the H3N2 strains that experts are seeing were not included in this year’s flu shot, said the US Centres for Disease Control and Prevention. “It is shaping up to be a bad year for flu,” said CDC chief Tom Frieden in a conference call with reporters. “H3N2 is a nastier flu virus than the other flu viruses.” At week seven of the typically 13-week flu season, the virus “is now widespread in almost the entire country,” he said. Flu typically infects п¬Ѓve to 15 percent of the population. It can be dangerous in those with weak immune systems, including the elderly and children. “It is shaping up to be a bad year for flu” Frieden said hospitalisation rates among people over 65 “are rising sharply,” going from 52 per 100,000 last week to 92 per 100,000 this week. “That is high but typical for H3N2 seasons,” Frieden said. The last H3N2 season was in 2012-2013, and the cumulative hospitalization rate among the elderly that season was 183 per 100,000. “We wouldn’t be surprised to see something similar happen this year,” Frieden said. An update on the effectiveness of this year’s vaccine will be released in the coming weeks. While Frieden said he expect to п¬Ѓnd the vaccine to be weaker than usual, he said authorities are still urging people to get their flu shot because it may offer some protection against other strains of the flu that are circulating. He also called for doctors to give antiviral drugs, like Tamiflu, to patients if they get sick. “In the context of an H3N2 predominant season, with a less effective vaccine, treatment with anti-flu drugs is even more important than usual,” he said. Scientists have found that anti-flu drugs can reduce symptoms, shorten the duration of symptoms and reduce the risk of complications, he said. “Anti-viral flu medications are greatly under-utilized but if you get the flu and you get medicines early they could keep you out of the hospital, they could keep you from having to go into the intensive care unit and they might even save your life.” Most people do not know the anti-viral drugs exist and fewer than one in п¬Ѓve high-risk patients get treated, he said. 8 Gulf Times Saturday, January 10, 2015 ASEAN Man arrested for procuring boys for suspected US paedophile Reuters Bangkok T hai police working with the US Federal Bureau of Investigation have arrested a man for procuring more than 100 boys over the past three years for an alleged American paedophile in northern Thailand, police said yesterday. Ayo Ahcho, a 23-year-old from the Akha hill tribe, was arrested on Tuesday in a border village in the Mae Fah Luang district of Chiang Rai province and charged with human trafficking, said Lt. Col. Apichart Hattasin of Thailand’s northern region police. Police said Ayo had been supplying boys to be sexually abused by 61-year-old Thomas Gary, who had been coming and going from Thailand for 20 years and was arrested on Sept 13 and charged with the sexual abuse of minors. “This was an individual case. This was not a network,” Apichart told the Thomson Reuters Foundation by telephone. Ayo himself had been having sex with Gary for three months, and Gary later provided Ayo with a room in the Chiang Mai guesthouse where he stayed and paid him 1,000 baht ($30) a day to work as his “servant”, Apichart said. Ayo would pick up boys ranging in age from 13 to 18 for Gary every other day or so, usually vulnerable children and orphans from the streets or from video game Internet cafes in Chiang Mai, the police officer said. He said Gary had kept a collection of dirty socks and underwear from the boys he abused. Apichart said Gary, who would normally stay in Thailand for about п¬Ѓve months each time he visited, had been released on bail within a few weeks of his arrest. He remained in Chiang Mai pending a court hearing. The US State Department in June named Thailand as one of the world’s worst centres for human trafficking, saying it was “not making signiп¬Ѓcant efforts” and was a source, destination and transit country for men, women and children subjected to forced labour and sex trafficking. According to child protection group Ecpat International, the number of Thai victims of trafficking for sexual exploitation is decreasing due to improved social and educational services. However, these services are not extended to stateless and undocumented migrants, who continue to be particularly vulnerable to commercial sexual exploitation, Ecpat said. Many people from hill tribes in northern Thailand are stateless. Three rebels killed in Thai south п¬Ѓreп¬Ѓght AFP Bangkok T hree suspected insurgents were killed in a shoot-out with soldiers in Thailand’s restive deep south yesterday after a 12hour stand-off at a house ended in bloodshed, police said. Acting on a tip-off, soldiers surrounded a house where a group of suspected rebels — who are п¬Ѓghting for greater autonomy for the Muslimmajority southernmost region — were holed-up since the early hours of Friday morning. “There was a long negotiation to persuade them to surrender,” a police official from Mayo district in Pattani province said, requesting anonymity. But the discussions collapsed and a prolonged п¬Ѓreп¬Ѓght erupted, before heavilyarmed security forces stormed the building, ending the incident 12 hours after it began. “Three insurgents were killed in the clash with soldiers... two others escaped,” he said, adding that several guns — including assault rifles — were abandoned by the suspects. Conflict analysts Deep South Watch say 6,300 people - the majority civilians - have been killed in a bitter, bloody and seemingly intractable 11-year insurgency mainly in Thailand’s southernmost provinces of Pattani, Narathiwat and Yala. A patchwork of disparate but seemingly well-organised rebel groups are calling for level of autonomy for the culturally distinct Muslim majority south, as well as an amnesty for their prisoners and wanted п¬Ѓghters. Thailand, a predominantly Buddhist nation, annexed the region more than 100 years ago and stands accused of perpetrating severe rights abuses as well as railroading the distinctive local culture through clumsy — and often forced — assimilation schemes. Street art Children run past a mural of a hippopotamus as part of the Street Art project вЂ�Laman Seni’ in Shah Alam, Malaysia yesterday. Pings detected in hunt for aircraft black boxes AFP Pangkalan Bun S ignals believed to be from the black box data recorders of crashed AirAsia Flight 8501 were detected yesterday, Indonesian authorities said, raising hopes they could be retrieved and the disaster explained. However the signals indicated the boxes may have been dislodged from the wreckage of the plane’s tail and fallen hundreds of metres deeper into the Java Sea, one of the search coordinators, S B Supriyadi, told reporters at nightfall. “We can’t get the co-ordinates yet. The possibility is the black box was thrown off and fell to the seabed and is buried in mud,” said Supriyadi, a director with the National Search and Rescue Agency who is stationed at search headquarters in the town of Pangkalan Bun on Borneo island. The plane crashed on December 28 during stormy weather as it flew from the Indonesian city of Surabaya to Singapore, claiming the lives of all 162 people on board. Rough seas and strong currents have slowed multinational efforts to п¬Ѓnd the wreckage of the plane, which is lying in rela- A search and rescue helicopter prepares to land on the Indonesian navy vessel KRI Banda Aceh during operations to lift the tail of AirAsia flight QZ8501 from the Java sea yesterday. tively shallow waters, and determine why it crashed. The black boxes are regarded as crucial to explaining the cause of the disaster, as they should contain recordings of the pilots’ п¬Ѓnal words and general flight data. They are designed to give a ping signal for 30 days after a crash so that the recorders can be found. The tail of the plane, where the black boxes were housed, was discovered on Wednesday partially buried in the seabed 30 metres underwater. But the late yesterday comments from Supriyadi, echoed by Indonesian military commander General Moeldoko, indicated the search had taken another frustrating twist and divers would have to go much deeper to retrieve them. Dozens of elite Indonesian Marine divers had tried but failed to thoroughly search the tail after its discovery on Wednesday, in a task complicated by powerful currents and the fact it was partially buried in the seabed. Those problems continued throughout yesterday, with efforts to lift the tail using floatation devices also scuppered by rough seas. Indonesian authori- ties have also brought a crane to the KRI Banda Aceh Navy vessel stationed close to the tail site, in hopes of using that to lift the wreckage. Supriyadi said the conditions were severely hampering all search efforts -- for the black boxes, other parts of the plane, and bodies. “Hopefully the weather and the sea are better tomorrow so we can do our operation,” he said. American, Chinese and other foreign naval ships are also involved in the hunt for other parts of the plane’s wreckage, as well as for the bodies of passengers. Just 48 bodies have been found so far, according to Indonesian authorities. All but seven of those on board were Indonesian. The non-Indonesians were three South Koreans, one Singaporean, one Malaysian, one Briton and a Frenchman — co-pilot Remi Plesel. In Jakarta, Transport Minister Ignasius Jonan announced 61 domestic flight routes operated by national flag carrier Garuda and four budget airlines had been suspended because they did not have permits. The ministry launched the probe into the permit system after п¬Ѓnding that Indonesia AirAsia did not have authorisation to fly the Surabaya-Singapore route on a Sunday, the day of the crash. It quickly banned Indonesia AirAsia from flying the Surabaya-Singapore route on any day. However, investigators have not linked the lack of authorisation to the crash, and Jonan said yesterday the audit had not uncovered any more permit violations by AirAsia. The Indonesian meteorological agency has said weather was the “triggering factor” for the crash, with ice likely damaging the engines of the Airbus A320-200. INTERNET Yingluck launches deп¬Ѓant impeachment defence AFP Bangkok O usted Thai prime minister Yingluck Shinawatra launched a deп¬Ѓant defence yesterday at the п¬Ѓrst hearing of impeachment proceedings that could see her banned from politics for п¬Ѓve years and deepen the country’s bitter divisions. Yingluck, Thailand’s п¬Ѓrst female premier and the sister of self-exiled former leader Thaksin Shinawatra, was dumped from office by a controversial court ruling shortly before the army seized power in a coup on May 22. She faces impeachment by the military-stacked National Legislative Assembly over her administration’s loss-making rice subsidy programme which -- while popular among her rural power base - costbns of dollars and was a driving force behind protests that toppled her government. Ousted former Prime Minister Yingluck Shinawatra delivers her opening statement to the military-appointed National Legislative Assembly in Bangkok yesterday. Analysts say the impeachment move is the latest attempt by Thailand’s royalist elite to neuter the political influence of the Shinawatras, whose parties have won every election since 2001. A guilty verdict from the assembly carries an automatic п¬Ѓve-year ban from politics, but could also galvanise her family’s вЂ�Red Shirt’ supporters to protest after months of silence under martial law. Yingluck, dressed in a black suit and pink shirt, arrived at the hearing flanked by security and a handful of her party members. “I ran the government with honesty and in accordance with all laws,” she told the assembly, rejecting the allegation of dereliction of duty by the nation’s anti-graft body that resulted in the impeachment bid. “The rice pledging scheme... aimed to address the livelihood of rice farmers, their debts and falling rice prices,” she said, describing it as part of the “social contract” which she claimed helped 1.8mn rice farmers. She ended a detailed and impassioned defence by urging the assembly to “deliberate with virtue, without prejudice or a hidden political agenda”. A successful impeachment needs three-п¬Ѓfths of the 250-strong assembly to vote in favour. A verdict is expected by the end of January. Prosecutors are also in the process of deciding whether Yingluck should face a separate criminal case over the rice subsidy scheme. Yingluck’s supporters say the proceedings and the criminal charges are part of a wider campaign to cripple the Shinawatra clan and disempower their vot- ers, who are drawn mainly from the poor but populous northern part of the country. But the move is not without risks. A vote to impeach Yingluck could stir the Red Shirts to protest, ending months of relative calm since the army grabbed power and imposed martial law. Thai politics expert Thitinan Pongsudhirak said the impeachment proceedings pose “a dilemma” for the junta and their supporters, who are desperate to land another body blow on the Shinawatras. “On the one hand they (the junta) want to see her disqualiп¬Ѓed from Thai politics,” said Thitinan, who is director of the Institute of Security and International Studies at Bangkok’s Chulalongkorn University. “But if they go all out against Yingluck -- by pushing for a ban or criminal charges -- they risk aggravating Thailand’s political conflict by stirring up the proThaksin camp.” Only a handful of supporters gathered outside the leg- islature yesterday. “This (impeachment) hearing is not fair,” said Varanchai Chokchana, a suited 63-year-old supporter clutching a bunch of roses for Yingluck. “They (the government) said they wanted reconciliation, but instead they have just seized power.” Yingluck’s billionaire brother Thaksin, who was deposed as premier in a 2006 coup, sits at the heart of Thailand’s deep schism, despite living overseas to avoid jail for a graft conviction. He is loathed by the Bangkokcentred establishment, its supporters in the south and among the judiciary and army, but still draws deep loyalty in the north and among sections of the urban middle and working classes. Since Thaksin swept to power in 2001, Shinawatra governments have been floored by two coups and bloodied by the removal of three other premiers by the kingdom’s interventionist courts. Filipino nurse sacked for вЂ�offensive’ online remarks A Singapore government hospital sacked a Filipino nurse yesterday for “offensive” remarks on social media, the latest in a string of foreigners dismissed from their jobs in the city-state for sparking controversy online. Tan Tock Seng Hospital said that the decision to fire Ello Ed Mundsel Bello came after it investigated three of his posts on Facebook and Google Plus that touched upon race and religion. It did not reveal the contents of the posts but described them as “highly irresponsible and offensive to Singapore and religion”. “We have dismissed Mr Ello Ed Mundsel Bello from our hospital immediately for his... comments made in 2014 while in our hospital’s employment,” Tan Tock Seng said in a statement on Facebook. “They have distressed members of the public and our hospital staff... His conduct goes against our staff values of respect, professionalism and social responsibility.” Police are currently investigating a separate post on Bello’s Facebook page this month in which he described Singaporeans as “loosers (sic) in their own country”. Gulf Times Saturday, January 10, 2015 9 AUSTRALASIA/EAST ASIA DIPLOMACY CRIME HEALTH OFFBEAT PEOPLE Pyongyang rejects call from South for talks Japan love-triangle poisoner denied retrial Taiwan to cull 120,000 chickens after bird flu Customs officers find drugs behind Winnie the Pooh Time Machine, Birds actor Taylor dies at 84 North Korea rejected yesterday a South Korean call for the resumption of stalled talks, a setback for efforts to reduce tension on the peninsula after the North Korean leader made a surprise New Year call for a summit. South Korea’s parliament called last month for a resumption of negotiations on various issues including North Korea’s human rights, and families still separated by the 1950-53 Korean War. But an official at South Korea’s Ministry of Unification, which handles inter-Korean affairs, said the North had rejected the proposal, without giving a reason. South Korea has also proposed inter-Korean talks be held this month. An 88-year-old Japanese man convicted of poisoning five women to rid himself of an unwanted love triangle was yesterday denied a retrial and ordered to remain on death row. Masaru Okunishi was sentenced to death in 1972 after being convicted of multiple counts of murder by slipping pesticides into wine at a community party in a remote mountain village in central Japan. The farmer initially told police he added the toxic chemicals to kill both his wife and his mistress, so he could untangle his twisted love life. Three other women also died, while a dozen fell ill but survived. Taiwanese authorities began culling around 120,000 chickens yesterday following the latest outbreak of a less virulent strain of bird flu, one of the island’s biggest culls in recent years. The move, to be completed today, came after some chickens at a farm in southern Pingtung county tested positive for the H5N2 strain of bird flu, according to the Bureau of Animal and Plant Health Inspection and Quarantine. It said the affected farm will be thoroughly disinfected, while monitoring of other farms in the area will also be stepped up. Local media said the farm is one of the largest of its kind in Taiwan and produces around 100,000 eggs daily. New Zealand foiled attempts to smuggle in more than 1,000 kilograms of illegal drugs in 2014, with stashes stuffed inside Winnie the Pooh pillows, camouflaged as breath mints and stashed in a can of porridge oats, the customs service said yesterday. Manager Jonathan Morten said customs officers were trained to have an eye for detail and a strong sense of suspicion and were bemused by an attempt to import a can of porridge oats. The can was later found to contain 3.5 grams of methamphetamine. A collection of children’s Winnie the Pooh and Micky Mouse pillows were found to be stuffed with pseudo-ephedrine. Rod Taylor, the Australian-born actor who helped actress Tippi Hedren battle swarms of vicious birds in Alfred Hitchcock’s 1963 film The Birds”, has died at the age of 84, his daughter announced on a fan website. Taylor, who would have been 85 tomorrow, died at home in Los Angeles after suffering a fall two weeks ago, the website said. His first leading role was in the 1960 film version of the H G Wells classic The Time Machine, but he was best known for co-starring in the Hitchcock film about a massive bird attack on a small northern California coastal town. Jackie Chan’s son gets jail term for drugs offence AFP Beijing T he son of kung fu star Jackie Chan was sentenced to six months in prison yesterday after admitting drugs offences, a Beijing court said. Jaycee Chan, who like his father has worked as an actor and singer, will be released in midFebruary, having already spent п¬Ѓve months in jail. State broadcaster China Central Television showed Chan pleading guilty in court, wearing a black jumper and blue trousers, flanked by two policemen. “I broke the law,” he said, appearing attentive and respectful of the proceedings. “I deserve to be punished. When I return to society, I deп¬Ѓnitely won’t do it again.” Chan was detained in August and charged with providing a venue for others to use drugs after police said they found 100 grams (3.5 ounces) of marijuana at his home in the Chinese capital. An hour and 22 minutes after proceedings began, the Dongcheng District People’s Court posted on a veriп¬Ѓed social media account: “He was convicted. He has been sentenced to six months in jail and п¬Ѓned 2,000 RMB,” or renminbi ($320). The court also said that his “detention” will end on February 13. Chan and Ko Chen-tung, a Taiwanese actor also known as Kai Ko, both tested positive for marijuana according to state This handout photo taken yesterday shows Jaycee Chan (second right), son of kung fu star Jackie Chan, being escorted before his trial at the Dongcheng District People’s Court in Beijing. media, and Kai made tearful televised confessions. At least 10 locally known stars were detained on drug-related charges last year, state-run me- dia have said. The arrests have been seen by observers as part of a wider campaign on morals by Beijing, which has also targeted pros- titution and the wider drugs trade. Around 200 mainly domestic journalists at the Dongcheng court were allowed to set up their equipment outside the building as the defendant arrived, and reporters were invited to wait in a conference room in the court building, where staff gave updates while handing out bottled water and tea. The scene was far removed from trials of Chinese dissidents, which domestic journalists generally do not attend except for a select few from state-run outlets. Foreign journalists at sensitive hearings are often aggressively targeted by plain clothes police if they go within even a few blocks of the courthouse. Jaycee Chan has featured in several п¬Ѓlms but has not so far won the acclaim earned by his father, one of Asia’s bestknown actors with a string of Hollywood hits to his name. Shortly after his son’s detention, Jackie Chan said in a post on China’s Twitter-like Sina Weibo that he was “extremely angry and extremely shocked”. “As a public п¬Ѓgure, I am ashamed. As a father I feel terrible,” he said in August. A total of 7,800 people were arrested for drugs offences in Beijing between January and August last year, state media reported, an increase of almost 72% on the same period in 2013. There were 26,000 “registered cases” of drug use in Beijing in 2014, up 10% year-onyear, according to police, who claim “singers, actors and п¬Ѓlm directors” comprise 0.15% of drug users in the city. Use of recreational drugs has risen in recent years in China as an economic boom has boosted the middle classes’ disposable income. Japanese woman п¬Ѓnds вЂ�dental material’ in burger AFP Tokyo A Japanese woman got more than a mouthful when she claimed to have discovered fragments later identiп¬Ѓed as “dental material” in a McDonald’s hamburger, marking the fast-food chain’s latest food quality embarrassment. The discovery of the objects, conп¬Ѓrmed by McDonald’s to be dental yesterday, comes two days after the company admitted several foreign objects had been found in food at Japanese outlets, including a human tooth in a container of french fries at an outlet in Osaka. An unidentiп¬Ѓed woman told the Asahi television network she had found three tiny fragments of what looked like teeth in a burger she bought at a McDonald’s outlet in northern Kushiro city in September. “I took a bite and there was a crunch,” the woman said in footage aired yesterday, adding that she initially thought it was a piece of sand or stone. “I can’t help thinking that it was (already) in the meat.” A third-party examination determined the opaque white fragments were “dental material”, according to company spokeswoman Miwa Yamamoto, saying the substance is commonly used to п¬Ѓll cavities or in other dental work. McDonald’s, however, would not conп¬Ѓrm the woman’s claim that the fragments were inside her burger. Yamamoto said the customer was told that there was an “extremely low chance” it could have fallen into raw material, given the highly-mechanised process. None of the employees at the outlet had issues with their teeth at the time and the customer denied it could have come from her, Yamamoto said. On Wednesday, McDonald’s acknowledged a human tooth had been found in fries sold by another outlet last year, while it has also been hit by incidents in which pieces of vinyl were found in chicken nuggets and a tiny piece of hard plastic in a sundae. Japanese media reported several other cases of contamination, including a piece of metal in a pancake. The incidents mark another public relations setback for the firm, which is struggling to recover from a battering to its reputation this summer when a Chinese supplier was found to be mixing out-of-date meat with fresh produce. Then, late last year, the company had to airlift an emergency supply of french fries from the US after a chip shortage had resulted in rationing at its 3,000 restaurants across Japan. Labour disputes on the US West Coast had bunged up the export chain, leaving Japanese firms scrambling to secure fresh supplies. The difficulties looked set to hit McDonald’s bottom line, with the Japanese unit earlier saying it was on track to report a 17bn yen ($142mn) annual loss for 2014. Japan generally has a good record on food safety, and its consumers are used to high standards. Occasional blunders can prove costly to reputations, and п¬Ѓrms that have fallen foul of shoppers have discovered the impact can be long-lasting. CURBS Man charged in fresh counter-terror raids AFP Sydney A ustralian police conducted fresh counterterrorism raids in Sydney yesterday, officials said, as part of an ongoing investigation into citizens providing support to foreign п¬Ѓghters overseas. A 33-year-old man was arrested and charged with acquiring and possessing ammunition illegally in the raids, which were carried out at four properties in southwest Sydney, New South Wales police said. He was refused bail and ordered to appear in a Sydney court today. The warrants were “part of a long-running investigation and not as a result of any speciп¬Ѓc terrorism threat,” police added in a statement. The raids were unconnected to the 16-hour standoff at a Sydney cafe in mid-December that left the lone gunman, self-styled cleric Man Haron Monis, and two hostages dead, an Australian Federal Police spokeswoman said. The investigation, which has been running for more than a year, is looking into alleged п¬Ѓnancial and other support for foreign п¬Ѓghters involved in conflicts such as those in Syria and Iraq. “The priority for all agencies involved in these operations is to ensure the safety of the community,” the Australian Federal Police’s interim Assistant Commissioner Peter Crozier said. Australia raised its terror threat level in September on growing concern about militants returning from п¬Ѓghting in Iraq and Syria. There were also large-scale counter-terrorism raids across the country in September. Eleven people have been charged with various offences related to the alleged planning of an attack on domestic soil and helping citizens travel to the Middle East as foreign п¬Ѓghters. End of the road for racy models at autoshow? вЂ�Coming of Age Day’ ceremony A 20-year-old tour guide dressed in a traditional kimono hangs up an вЂ�ema’, or votive tablet, with her written wish at Tokyo’s Meiji Shrine after attending a purification ceremony with a Shinto priest to celebrate Japan’s Coming of Age Day yesterday. Since tour guides will be busy working on Japan’s national holiday Coming-of-Age Day on January 12, the company had a ceremony for them ahead of time. Young people turning 20 are officially recognised as adults in Japan. Female models in tight dresses and miniskirts may be banned from one of Asia’s premier car exhibitions in Shanghai this year. The Chinese government is concerned about what it sees as increasing vulgarity in society. A crackdown on pornography and freedom of expression more generally has intensified since President Xi Jinping assumed office in 2013. Victor Yang, spokesman of Geely Automobile Holdings Ltd said yesterday that the company has received verbal notice from the Shanghai autoshow organiser that no models can be used at the weeklong event, from April 20. An official at the Council for the Promotion of International Trade Shanghai, one of the main organisers, said such a restriction was “under discussion” and a decision would be published soon. Auto promoters in China, as in many other places, often employ models to jazz up their stands. The models often seem to get more attention than the cars. Government censors faced a backlash from Chinese Internet users this month when a television drama about a Chinese empress was scrubbed of all footage showing actresses’ cleavage. China punishes 17 officials over Xinjiang violence Reuters Beijing C hina has punished 17 officials for lapses in connection with explosions and riots in the Xinjiang region in September, state media said, as the regional Communist Party boss said the п¬Ѓght against “terrorism” was getting “more intense”. Dozens of people were killed in Xinjiang in the violence which began when explosions killed six people. Riots followed the blasts and police shot dead 40 people, some of whom were trying to blow themselves up, state media said at the time. It was one of several violent incidents that have rocked the region in recent years. The government has blamed the trouble on separatists from the Uighur ethnic minority, most of whom are Muslim, who it says want to form an independent country called East Turkestan. It is difficult for foreign journalists to report in Xinjiang, making it almost im- possible to reach an independent assessment of the security situation. After an investigation into the Sept. 21 violence, Xinjiang’s Communist Party committee gave 17 officials “party and government disciplinary” punishment for security and other lapses, the www. ts.cn news site, which is run by the committee, said late on Thursday. Zhang Chunxian, Xinjiang’s party secretary, said the security situation was “extremely grim”. “Xinjiang’s anti-terrorism п¬Ѓght has entered a phase that is more complicated and more intense,” Zhang said, according to a report published by the website on Thursday. “We must take the initiative to brandish the sword, take the of- fensive and comprehensively attack.” The government has blamed attacks in other parts of China, including Beijing, on militants from Xinjiang. Human rights activists say repressive government policies in Xinjiang, including curbs on religion and culture, as well as economic and social problems have provoked unrest. 10 Gulf Times Saturday, January 10, 2015 BRITAIN CONDOLENCE Prince Harry signs a book of condolence at the French embassy in London yesterday for the 12 victims of the attack on the Paris offices of satirical weekly Charlie Hebdo. WEATHER DECISION PEOPLE OPERATION Huge storm sparks major disruption Expansion of 100-year-old Tube power plant unveiled Ebola nurse Cafferkey remains critical, say family Salvors to pump water from carrier Around 85,000 properties were left without power at the height of a storm which caused major disruption to the transport network. ScotRail suspended all services for safety reasons for a time yesterday after hurricaneforce winds which brought gusts of up to 113mph battered the country. Ferry services were subject to cancellations and several roads and bridges were closed, as were many schools. A gust of 113mph was recorded at Stornoway on Lewis, the strongest gust since records at that site began in 1970, while a gust of 110mph was recorded at Loch Glascarnoch in the Highlands. London mayor Boris Johnson has unveiled plans for an expansion of one of the world’s oldest electricity stations to help power the capital’s underground rail network. Greenwich Power Station, which was built in 1906 to provide electricity for London’s trams, will receive up to six new gas engines to power the network known as the “Tube” and provide heat for 20,000 homes. London has an ambitious target to reduce its carbon emissions by 60% by 2025 to try to tackle climate change and cutting emissions from the transport network is a large part of this plan. The new gas-fired engines could cover around 13% of the Tube’s annual power needs. Pauline Cafferkey, the British nurse fighting the Ebola virus after her return from treating the sick in Sierra Leone, remains in a critical condition, her family has said. In a statement issued by the Royal Free hospital in London, which is treating the nurse, Cafferkey’s family thanked the public for their messages of support. “We have been very touched by the kind words,” the statement said. “Pauline continues to be in a critical condition at the Royal Free hospital. We want to thank all the staff caring for her for their kindness, support and compassion. Pauline’s condition could remain the same for some time and we would again ask for her and our privacy to be respected.” Salvors are hoping to begin pumping 3,000 tonnes of water which have been taken onboard a car carrier which became stranded near to a busy shipping lane. The Hoegh Osaka was beached deliberately on Bramble Bank sandbank, near Southampton, last Saturday after it began listing as it left the Hampshire port. The 51,000-tonne ship, which has a cargo of 1,400 cars and 105 pieces of construction equipment, floated free from the sandbank on the high tide on Wednesday and has since been anchored at a spot two miles east called Alpha Anchorage near Lee-on-theSolent. 999 crews told to stay away by hospital with bed-crisis London Evening Standard London T he A&E crisis deepened yesterday as Britain’s biggest NHS trust revealed that one of its hospitals ran out of beds and had asked ambulances to stay away. It came as NHS England п¬Ѓgures for the п¬Ѓrst days of 2015 showed more than 2,500 patients waited on trolleys for more than four hours to be admitted to London hospitals - including 33 who waited more than 12 hours. Patients were stuck in ambulances for more than 30 minutes outside the capital’s A&E units on 706 occasions last week, the п¬Ѓgures showed. Yesterday the Standard revealed that Barts Health - the country’s biggest group of hospitals - had 36 patients in Whipps Cross’ casualty department awaiting admission to a ward at 6am on Tuesday but nowhere to put them. The previous evening the hospital, in Leytonstone, was so busy that trust bosses asked for ambulances to be diverted, only to be refused as other hospitals were also full. In the week ending on Sunday, 463 patients at Barts waited more than four hours to be admitted to a ward. Yesterday it was also revealed that the neighbouring Barking, Havering and Redbridge trust was forced to declare an “internal major incident” in the runup to Christmas. Bosses at the trust - the only one in London in special measures - were forced to implement the crisis procedure as Queen’s hospital in Romford and King George in Ilford buckled under unprecedented demand on December 16. Last week it had 249 A&E patients waiting more than four hours to be admitted and 21 who waited more than 12 hours. An internal major incident, which trusts do not have to make public at the time, was also declared by Croydon hospital for a period earlier this week. Barking, Havering and Redbridge was the worst trust in the capital, and the fourth worst nationally, for A&E delays during the last quarter of 2014. At Whipps Cross this week, outpatient operations were cancelled to free up space. An extra 99 “escalation” beds introduced across Whipps Cross, the Royal London and Newham to help with demand were “not sufficient”. At times, patients had to be held in ambulances outside Whipps Cross’ A&E department for more than an hour. Barts said that the London Ambulance Service’s “intelligent conveyancing” system, which takes patients only to hospitals with spare capacity, effectively ground to a halt. Ambulances were diverted away from Whipps Cross for short periods last Friday and on Sunday to prevent its resuscitation room exceeding capacity. All 36 patients stuck in A&E on Tuesday were eventually found a bed. Other trusts requesting ambulance diversions last week included the Royal Free, Hillingdon, Lewisham and Greenwich and King’s College. Menwhile, Circle Holdings, the п¬Ѓrst private company to run a general hospital for the National Health Service, yesterday said it was pulling out of Hinchingbrooke hospital in eastern England because it was no longer sustainable. Its decision, triggered by a crisis in the provision of emergency care across the NHS in recent months, is a blow to government plans to increase the role of private companies in healthcare. Premier meets small business owners Prime Minister David Cameron sits with Chancellor George Osborne during a meeting with local small business owners in Stockport, northern England, yesterday. Protecting Britons from terror top priority: govt Chancellor says MI5 and MI6 will get whatever resources they need, in response to call for new powers after Paris attack Guardian News and Media London G eorge Osborne has pledged to give MI5 and MI6 whatever resources they need to allow them to maintain their “heroic job” in protecting the British people from terrorist threats at home and abroad. Speaking after the director general of MI5 called for new powers in the wake of the Charlie Hebdo attack in Paris, the chancellor endorsed Andrew Parker’s view that the п¬Ѓght against terrorism is Britain’s main national priority. Osborne told BBC Breakfast on Friday: “My commitment is very clear. This is the national priority. We will put the resources in. Whatever the security services need they will get because they do a heroic job on our behalf.” Parker had warned of a dangerous imbalance between increasing numbers of terrorist plots against the UK and a fall in the capabilities of intelligence services to spy on communications. He described the Paris attack as “a terrible reminder of the intentions of those who wish us harm” and said he had spoken to his French counterparts to offer help. Osborne said the government had recently set aside an extra ВЈ100mn to allow the intelligence agencies to monitor “self-starter” terrorists travelling to Iraq and Syria. “In the last few weeks we have put extra money – over ВЈ100mn – into speciп¬Ѓcally monitoring people going to conflicts in Syria and Iraq, these self-starting terrorists who get their ideas off the internet and then go and want to perpetrate horrendous crimes,” he told the BBC. “So we are putting a huge ef- “ The Grand Budapest Hotel”, an offbeat comedy starring Ralph Fiennes as the concierge of a luxury hotel in a bygone Europe, topped the shortlist for Britain’s Bafta awards, with 11 nominations, including for best п¬Ѓlm. Following is how the main п¬Ѓlms stack up for the awards. Nominations were announced yesterday and the winners will be unveiled by the British Academy of Film and Television Arts on February 8. O The Grand Budapest Hotel was nominated for best п¬Ѓlm, best director for American Wes Anderson and original screenplay; original music, cinematography, editing, production design, costume design, make-up and hair and sound. Fiennes was nominated for leading actor. O Birdman, a satire of show business by Mexican director Alejandro Inarritu, was nominated for best п¬Ѓlm, best director, original screenplay, original mu- sic, cinematography, editing and sound. Star Michael Keaton is nominated for leading actor while co-star Edward Norton is up for best supporting actor and Emma Stone is nominated for supporting actress. O The Theory of Everything, a biopic of scientist Stephen Hawking by British director James Marsh, received nominations for best п¬Ѓlm, outstanding British п¬Ѓlm, director, adapted screenplay, original music, editing, costume design and make-up and hair. English actor Eddie Redmayne was nominated for leading actor, while Felicity Jones received a nomination for leading actress. Jones, 31, who is also up for a Golden Globe tomorrow, said recognition by her home п¬Ѓlm industry was “fantastic”, adding: “It was such a collaborative process so it’s wonderful that everyone involved has been recognised because truly it was one of those special projects where we all cared so much about it.” She said she was “very happy” to face competition for leading actress from stars in “really exciting female parts”, including fellow Brit Rosamund Pike in Gone Girl. O The Imitation Game, about World War II code-breaker Alan Turing directed by Norway’s Morten Tyldum, was nominated for best п¬Ѓlm, outstanding British п¬Ѓlm, adapted screenplay, editing, production design, costume design and sound. Benedict Cumberbatch was nominated for leading actor and Keira Knightley was nominated for supporting actress. O American director Richard Linklater’s coming-of-age п¬Ѓlm Boyhood, п¬Ѓlmed over a 12-year period using the same cast, received п¬Ѓve nominations, as did American director Damien Chazelle’s Whiplash, which portrays a music instructor who pushes students beyond their limits. O There were four nominations each for Mr Turner, British director Mike Leigh’s portrayal of landscape painter J M W Turner, British director Christopher Nolan’s space epic Interstellar and US п¬Ѓlm Nightcrawler, about a video cameraman who п¬Ѓlms gruesome accidents. made clear his strong political support for MI5. Speaking to an invited audience at MI5 headquarters on Thursday, Parker said the threat level to Britain had worsened and extremist groups in Syria and Iraq were directly trying to orchestrate attacks on the UK. Such an attack was highly likely and MI5 could not guarantee it would be able to stop it, he said. “Strikingly, working with our partners, we have stopped three UK terrorist plots in recent months alone,” he said. “Deaths would certainly have resulted otherwise. Although we and our partners try our utmost, we know that we cannot hope to stop everything.” More pupils вЂ�going to school hungry’ Grand Budapest Hotel leads Bafta nominations Reuters London fort in. As the director general of MI5 has said, that is the threat we face and we face a threat from more complex plots. So we have got to be vigilant, we have got to have the resources there.” The chancellor said the agencies were “absolutely in the front line with the police at dealing with this threat. They will get the support they need and indeed in the last few weeks they have got that support.” His remarks focused on the п¬Ѓnancial support the government will provide for Britain’s three intelligence agencies, the domestic agency, MI5, the overseas Secret Intelligence Service, MI6, and the UK’s GCHQ eavesdropping centre. But he also Agencies London R British comedian and actor Stephen Fry holds up a Bafta statuette during the Bafta film awards nominations at Bafta in London yesterday. ising numbers of children are arriving for school hungry, according to a poll of teachers. Almost two п¬Ѓfths of school staff (38%) say that every day, they see pupils turning up for class who have not had enough to eat, while a similar proportion see it between once and four times a week. And nearly a third (31%) suggested that a child has blamed falling asleep in class on being hungry or thirsty. The survey, which questioned almost 900 teachers, found that a п¬Ѓfth believe that the number of youngsters turning up for lessons hungry has increased in the last year, while a further 77% said it had stayed about the same. Just 2% said they thought there had been a decrease. Of those that said there had been an increase in hungry pupils, 69% said they thought one of the main reasons for this is due to families continuing to struggle due to the economic downturn, while 56% said beneп¬Ѓts cuts are affecting families’ п¬Ѓnancial situations, making it tougher for them to provide breakfast for their children. Just under half (48%) thought that some parents were struggling to п¬Ѓnd work and cannot afford to put food on the table in the morning. Three quarters of all the teachers questioned said that being hungry or thirsty makes a child more lethargic, while 83% said youngsters are unable to concentrate and 62% said pupils are unable to learn if they have not eaten properly. Three in 10 admitted that they have brought food into school for pupils they believe have not had breakfast. Paul Wheeler from Kellogg’s, which commissioned the poll, said: “It’s a crying shame that so many children are going to school without having eaten a basic breakfast. “When your stomach’s rumbling it’s hard to concentrate on anything else, so it’s no small wonder we’re hearing about children becoming badly behaved and unwilling to learn when they’re hungry.” Kellogg’s provides school breakfast clubs for children in deprived areas of the UK. Gulf Times Saturday, January 10, 2014 11 EUROPE LAW ENVIRONMENT STRATEGY DNA TESTING VIOLENCE Russia bans transvestites, transsexuals from driving Swedish court stops hotly contested wolf hunt EU states call for plan to tackle Russian вЂ�propaganda’ Missing skier identified in Austria after 86 years Six killed ahead of planned Ukraine peace talks Russia has passed a controversial law banning transvestites and transsexuals from driving, prompting sharp criticism from rights activists, including a prominent Kremlin adviser. The legislation that entered into force this week bans anyone diagnosed with a range of personality and gender identity disorders, including transvestites and transsexuals, from taking the wheel. The list also includes people with sexual fetishes, voyeurs and paedophiles, as well as pathological gamblers and kleptomaniacs. The law follows other legislation passed in Russia discriminating against people because of their sexual orientation. A Swedish court has pulled the plug on a wolf hunt due to start yesterday, favouring animal rights activists in one of the country’s most hotly disputed environmental issues. Sweden resumed wolf hunting in 2010 and 2011, which led the European Commission to protest the country’s policy of hunting quotas. Since then environmental advocates have been successful in fighting the government’s decisions to allow culling. A lower court agreed on Thursday with wildlife activists that the regions of Oerebro and Vaermland had exceeded their powers by issuing hunting permits for species protected by European nature legislation. Britain, Denmark, Estonia and Lithuania yesterday urged Brussels to prepare an EU-wide plan to tackle Russia’s “propaganda campaign” amid tensions over Ukraine. “Russia is rapidly increasing its disinformation and propaganda campaign, as an asymmetric response to Western economic power,” the countries’ foreign ministers said in a letter. “At the same time in Russia the free media is suppressed by the government, intimidated and pushed out of the public sphere, when foreign media outlets are discriminated and forced to close.” The letter to EU foreign policy chief, warned that “propaganda aims at hindering the EU and Western unity”. Human remains found in a cave in the Austrian Alps have been identified as those of a skier who went missing 86 years ago, police said yesterday. DNA tests confirmed that the remains were of Karl K, who never came home after going skiing alone on the Untersberg mountain near his home in Salzburg in March 1929. He was 21. In November 2014 a geologist found bones in a cave — he thought at first they were from an animal —as well as a hobnail leather boot and bits of wooden ski and pole. Police came across K’s name after combing through old records and were able to get a match after comparing DNA with his surviving half-sister, who is well over 100. Four Ukrainian soldiers and two civilians were reported killed yesterday in an upsurge in mortar and rocket attacks launched just days ahead of planned international talks on the crisis. Local authorities in the rebel stronghold of Donetsk said two civilians were killed and seven injured in clashes around the industrial city’s disputed airport. The air hub — once the busiest and most modern in the largely Russianspeaking east of Ukraine — has been held by a skeleton force of government soldiers since late May. Almost daily attacks by pro-Russian insurgents on the airport have resulted in heavy civilian casualties. France is at вЂ�war’ with terror, not religion: PM AFP Paris French PM Manuel Valls says new security measures necessary; Charlie Hebdo survivors start work on new issue R AFP Paris F rance is at “war” with terrorism, but not religion, Prime Minister Manuel Valls said yesterday as police cornered two suspected Islamist gunmen near Paris. “We are in a war against terrorism. We are not in a war against religion, against a civilisation,” Valls said. The country has been left reeling after the massacre Wednesday of 12 people at a satirical weekly magazine by two brothers shouting Islamist slogans. And as a dramatic manhunt saw police corner the suspects in the small town of Dammartinen-Goele north of Paris, Valls said it would “certainly be necessary to take new measures” to response to extremist threats. He said that current policies had resulted in п¬Ѓve attacks being foiled since August 2013. “We knew we could be hit,” he said, adding he had no doubt the French would emerge stronger from the incident. “What are terrorists looking for? To create fear, to pit the French against each other — and we must be stronger than that.” Meanwhile, surviving employees of Charlie Hebdo started work on a new issue yesterday in premises loaned by the newspaper Liberation. Prime Minister Valls and Culture Minister Fleur Pellerin visited Liberation in a show of support for the journalists, cartoonists and others shown into the building in central eastern Paris. Among the employees were one of its columnists, Patrick Pelloux, and its lawyer, Richard Malka, who had told AFP on Thursday that a special “survivors’ issue” of Charlie Hebdo would come out next Wednesday, with 1mn copies printed instead of the usual 60,000. The massive print run is a sign of deп¬Ѓance after two gunmen using automatic rifles mowed Snipers, copters turn French town into a warzone (From L) French columnist for Charlie Hebdo Patrick Pelloux, French Prime Minister Manuel Valls and French Culture Minister Fleur Pellerin speak during a visit to the headquarters of Liberation on January 9, 2015 in Paris, as editorial staff of French satirical newspaper Charlie Hebdo and Liberation gather following the deadly attack that occurred on January 7 by armed gunmen on the Paris offices of Charlie Hebdo. down the newspaper’s staff during an editorial meeting on Wednesday this week. Twelve people were killed, including п¬Ѓve of the newspaper’s most prominent cartoonists, and two policemen. The surviving staff members were met by Liberation’s bosses and shown to an area donated to them to work on the issue. “There are around 30 people with Charlie Hebdo. They need to be able to work with humour,” one of the bosses, Laurent Joffrin, told reporters. “We are hosting them because they don’t even have a pencil. Their computers and all their equipment have been sealed” in their bloodsoaked offices a few streets away, said another, Pierre Fraidenraich. Another French newspaper, Le Monde, supplied the Charlie Hebdo team with computers, in a sign of solidarity by media after the attack. France’s culture minister said on Thursday she was looking at injecting around 1mn euros ($1.2mn) into Charlie Hebdo to ensure its survival. Meanwhile, a police source told Reuters that the man suspected of killing a policewoman in a southern suburb of Paris on Thursday before fleeing the scene was a member of the same jihadist group as the two suspects in the attack at weekly newspaper Charlie Hebdo. The assailant believed to be behind the shooting in the Montrouge area knew Cherif and Said Kouachi, the brothers suspected of killing 10 journalists and two police officers in Wednesday’s assault, the source said yesterday. The man, wearing a bulletproof vest and carrying an as- sault rifle and a handgun, fled in a Renault Clio from the scene after the attack and is still on the run. Two people have been arrested in an investigation by antiterrorist authorities, the source said. Racist graffiti scrawled on French mosque Muslim faithful arriving for morning prayers in southwestern France yesterday found racist graffiti scrawled on their mosque, two days after an Islamist attack in Paris left 12 people dead. The graffiti was written in fluorescent green paint on the gate, trash can and a notice board outside of the mosque in Bayonne, Abderrahim Wajou, the president of the regional Muslim association, told AFP. The graffiti alluded to Wednesday’s attack on the weekly satirical Charlie Hebdo, Wajou said. “We fear that these acts will increase,” he said. “We are like everyone else, we are terrified by what happened at Charlie Hebdo, what happened was totally unjust. But adding insult to injury will only sow discord.” Muslim places of worship in several French towns have been targeted since Wednesday’s massacre at Charlie Hebdo, which has deeply shocked France. The attacks, which have included shots being fired and blank grenades thrown, have not harmed anyone. ooftop snipers, police in black armoured gear and hovering helicopters lent a small French town near Paris’s Charles de Gaulle airport where the Charlie Hebdo massacre suspects were holed up the air of a warzone yesterday. Businesses in Dammartinen-Goele, home to about 8,000 people, shuttered, leaving the streets deserted except for lines of police vehicles and units of heavily armed officers. Masked and helmeted troopers with automatic weapons were seen peering out of a blue police helicopter hovering overhead. “The whole zone is surrounded. We are conп¬Ѓned to our homes. We can hear helicopters and there’s one currently hovering over my house,” Michel Carn, a resident, said. The forces’ focus — like the entire country’s — was on a printing business in an industrial park on the town’s northeastern outskirts, where the two brothers suspected of killing 12 people during an Islamist attack on the magazine on Wednesday were surrounded. Inside the brothers, who had evaded police in a two-day manhunt following France’s worst terrorist attack in decades, held an employee hostage. A little earlier, salesman Didier did not see anything amiss when he arrived at CTD printers for a business meeting, until he met a man at the door dressed in black and carrying what appeared to be a Kalashnikov assault rifle. He’d stumbled right into one of France’s most wanted men as well as his hostage, he told France Info radio. “When I arrived, my client came out with an armed man who said he was from the police. My client told me to leave so I left,” Didier said. He identiп¬Ѓed the man he was to meet as Michel. “I shook Michel’s hand and I shook the hand of one of the terrorists,” he told the radio. Reflecting the extraordinary atmosphere in France now, Di- dier said he almost believed that the armed man in black was a policeman. But when the man told him, “вЂ�Leave, we don’t kill civilians anyhow’, that really struck me,” he said. “So I decided to call the police. I guess it was one of the terrorists.” Residents described their terror at the sudden transformation of their small town. “It happened very, very quickly. We saw helicopters and suddenly we saw CRS (elite police) all around us. We started to panic a bit,” said Stephane, 45, who works in a hazardous materials business. “My daughter works at the food shop, in the area where the terrorists are hiding. The business where she works is being protected by GIGN (police commandos). They told them to turn out the lights and take cover” “They just gave us enough time to grab something warm to wear outside. Now we’re waiting,” he said. A 60-year-old woman said her daughter worked close to the hostage scene. “My daughter works at the food shop, in the area where the terrorists are hiding. The business where she works is being protected by GIGN (police commandos). They told them to turn out the lights and take cover,” she said. “My daughter told me: вЂ�Don’t be scared mummy, we’re well protected. She was calm but me, I’m scared. I’m really scared,” the woman said, sobbing. Marcel Bayeul, a local union official, said there were snipers on the roofs of a warehouse in the industrial park. “Our workers are protected,” he said. But few really felt safe. The town mayor’s office appealed on its Internet site for residents to stay behind closed doors. Nearby schools were evacuated, deepening the sense of siege. “Ambulances are here, п¬Ѓremen are here and everything is ready,” the deputy mayor, Jean-Pierre Mateo, said. “We hope the ambulances won’t be needed.” Paris massacre targeted вЂ�all faiths’ Danish newspaper says AFP Ankara T urkey’s top Muslim cleric has denounced the attack on a French satirical weekly as an “unacceptable” action targeting all faiths including Islam, saying he was pained to see Islamic values used as a pretext for slaughter. Twelve people were killed on Wednesday in the unprecedented jihadist attack in Paris on the Charlie Hebdo magazine, which was known for lampooning radical Islam and had angered Muslims on several occasions. But Mehmet Gormez, the head of Turkey’s Religious Affairs Directorate — known as Diyanet in Turkish — told AFP in an interview that the massacre was an attack on all faiths, including Islam and the message of its Prophet Muhammad. “I see this attack not only (as an attack) against a magazine’s employers, France, the West or Europe but against all faiths, all esteemed values and God’s messages of mercy and grace con- veyed by the prophet to humanity,” he said. Video footage circulated on social media showed black hooded gunmen running through the streets of Paris, п¬Ѓring off a hail of bullets and shouting “Allahu Akbar” and “We have avenged the Prophet Muhammad.” But Gormez, the top cleric in Turkey’s officially secular system, expressed fury that the attackers had used sacred Islamic words like “Allahu Akbar” read out to every Muslim when they are born and repeated in each prayer time. “The brutal massacre of people is unacceptable. It is similarly unacceptable that they are carried out in the name of religion. “It is more painful that sacred values are disregarded, eminent concepts and values that belong to Islam are taken hostage.” While unequivocally condemning the attack “without any buts”, Gormez said he deemed freedom of expression signiп¬Ѓcant but said it has a limit. “I believe that denigrating or insulting the values that make a person human — in the name of freedom of expression — is not correct.” “When it is looked at by a different faith or culture, defamation — especially on the subject of faith —could become cultural torture,” he said. “The brutal massacre of people is unacceptable” Gormez said violent attacks were not linked to Islamic traditions and they were carried out by individuals with “wounded conscious and fatal identities” who were raised in the shadow of wars and the occupations of Iraq and Afghanistan. “Neither Damascus nor Baghdad were cities in history where extremists speaking fluent Oxford English beheaded other people,” he said, referring to the murders committed by Islamic State (IS) EU-born jihadists in Iraq and Syria. The attack, suspected to have been carried out by two French brothers of Algerian origin — has raised fears of a surge in anti-Muslim feelings in Europe with public sentiment already inflamed by the atrocities committed by IS. Reprising a theme of President Recep Tayyip Erdogan, Gormez said that Islamophobia in the West “has transformed into an industry”. But he said that those who were behind the massacre were trying to whip up an increase in Islamophobia in Europe. “But I believe that common sense will prevail,” he said, expressing hope that people of all faiths, including atheists, “will join hands and learn lessons from this scourge”. German group PEGIDA has in recent months rallied thousands of people in Dresden for demonstrations against what it calls the “Islamisation of the Occident.” But there has already been a strong public reaction — Germany’s Cologne Cathedral turned off its lights on Monday in a symbolic rejection of a rally taking place in its shadow, a gesture Gormez said had profoundly touched him. “I penned an emotional letter to Cologne cardinal to express my gratitude,” he revealed. won’t reprint cartoons Reuters Copenhagen D anish newspaper Jyllands-Posten, which angered Muslims by publishing cartoons of the Prophet Muhammad 10 years ago, will not republish Charlie Hebdo’s cartoons due to security concerns, the only major Danish newspaper not to do so. “It shows that violence works,” the newspaper stated in its editorial yesterday. Denmark’s other major newspapers have all republished cartoons from the French satirical weekly as part of the coverage of the attack which killed 12 people in Paris on Wednesday. Many other European newspapers also republished Charlie Hebdo cartoons to protest against the killings. When Jyllands-Posten published 12 cartoons by various artists in September 2005, most of which depict the Prophet Muhammad, it sparked a wave of protests across the Muslim world in which at least 50 people died. “We have lived with the fear of a terrorist attack for nine years, and yes, that is the explanation why we do not reprint the cartoons, whether it be our own or Charlie Hebdo’s,” JyllandsPosten said. “We are also aware that we therefore bow to violence and intimidation.” Jyllands-Posten decided to tighten its security level in the wake of the Paris attack. “The concern for our employees’ safety is paramount,” it said in yesterday’s editorial. Meanwhile, a Swedish member of parliament reported a far-right leader to the police yesterday for alleged incitement to hatred over a comment related to the Charlie Hebdo massacre in Paris. In a Facebook comment to an article on the killings at the French satirical weekly’s office on Wednesday, the party secretary of the Sweden Democrats Bjoern Soeder wrote “вЂ�The religion of peace’ shows its face.” “He has linked practising Muslims to a terrorist act, it’s extremely offensive,” Veronica Palm, from the ruling Social Democratic party told TV4 news. “This statement is offensive to a group of people and I want to see if it comes under laws against inciting racial hatred,” said Palm. Soeder is also a deputy speaker of the Swedish parliament where his anti-immigration party doubled its support to 13 percent in a September election — making it Sweden’s third political party. The Sweden Democrats, with roots in the country’s most radical extreme right, entered parliament in 2010. 12 Gulf Times Saturday, January 10, 2015 INDIA COMMENT OFFBEAT CRIME ACCIDENT LAW AND ORDER Politician claims Paris massacre justified Plans afoot to clean govt offices with cow urine Father admits to woman’s honour killing Three die in Maharashtra blast Six militants nabbed, arms seized in Assam Police yesterday said they were investigating a regional political leader who reportedly justified the massacre at France’s satirical weekly Charlie Hebdo and called for the attackers to be rewarded. Police have registered a preliminary criminal case against Haji Yakub Qureshi, a former government minister in Uttar Pradesh, for inciting communal hatred. “Based on newspaper reports, we have lodged an FIR (first information report) against Qureshi under Section 505 of the Indian Penal Code,” Meerut city police chief Om Prakash said. “We are probing the case and will take action as per the laid out law,” he said. Cow urine may soon be used to clean the floors of government offices in the country. A charity working to care for and protect the cows that freely roam India’s streets has developed a cleaning product with their urine - distilled and spiked with natural perfumes to remove the pungent odour. “Initially when we tried the product, it had too strong a smell. Nobody would have used it. So we have distilled the urine now and added natural ingredients like pine oil to cover the smell,” said Anuradha Modi from the Holy Cow Foundation. Modi said she was working on a deal to get the company that supplies housekeeping items to government offices to use the product. A 19-year-old woman was allegedly killed by her father and brother in Uttar Pradesh as they did not approve of her relationship with a local man, a news report said yesterday. The victim, a member of the Dalit or the so-called low-caste community, was found dead with extensive head injuries in a field in Muzaffarnagar district Tuesday, broadcaster NDTV reported. Her father and brother allegedly beat her with bricks after spotting her with a man, and were arrested on Thursday, police were quoted as saying. Police said the father had confessed to murdering his daughter for “honour,” as she threatened to elope if the family did not accept her relationship. At least three people were killed and four injured in a suspected gelatin blast in a wind power generation plant in Satara, Maharashtra, yesterday, officials said. The incident occurred around 10am when the victims were burning a heap of waste and rubbish material, Satara superintendent of police A Deshmukh said. “The suspected stock of gelatin sticks or some other explosives may have been accidentally ignited,” he said from the site. The injured, whose condition is described as serious, have been taken to the Satara Civil Hospital. The wind power plant is located in a remote, hilly region of Satara district. Six National Democratic Front of Bodoland (NDFB) militants have been arrested from Assam’s Kokrajhar district and a huge cache of arms and ammunition has been recovered from them, police said yesterday. The militants were arrested from a forest on Thursday night and two of them were involved in killing people in Kokrajhar, police said. Security forces have recovered four pistols, one AK 47 rifle, one M16 rifle, four grenades, over 300 rounds of ammunition and four bags of medicine from their possession. “Two of the arrested militants, identified as Mithinga and Khurei, were directly involved in a massacre in Kokrajhar on December 23, 2014,” a police official said. Chandy bats for blue-collar expatriates at diaspora meet By Ashraf Padanna Thiruvananthapuram K erala Chief Minister Oommen Chandy has urged the federal authorities to expedite the process of enfranchising India’s 10mn-strong diaspora and to address issues of blue-collar workers. He wanted changes in election laws and suitable technology to be developed to provide online voting facility to the NRIs and end the discrimination. Contrary to expectations of the delegates from the Gulf countries, Prime Minister Narendra Modi failed to make any commitment on issues like absentee voting in his address at the Pravasi Bharatiya Divas (PBD) on Thursday. The southern state, which hosted the PBD or Non-Resident Indian day celebrations in 2013, represents most of the Indian expatriates in the Gulf countries who contribute nearly half of the foreign exchange remittances to the country. The state which opened the п¬Ѓrst corporate international airport with the support of its diaspora, has since 2005 been demanding waivers in strict conditions for starting a budget airline for the low-income expats. “The ordinary, common NRIs, who constitute close to 75% of the total expat population, are not represented here,” Chandy said in his address at the chief ministers’ conclave of the three-day event that concluded yesterday. He proposed setting up a separate one-day session for emigrant labourers to discuss their problems from the PBD’s next edition onwards. “These people remit on an average over Rs600bn per year to our banks in Kerala which is three times our annual plan budget,” he said in his address webcast live. “We have to stand united and should carry all sectors of society together for fulп¬Ѓlling our goals”. The Kerala chief minister also aired concern about the travel woes of the Gulf-based NRIs who complain of “exorbitant and unreasonable airfare charged by various airlines including our own Air India”. “Almost 80% of the Indians in the Gulf are blue-collar workers,” he said. “And during vacations, the airlines increase their fares п¬Ѓve to 10 times. Exploitation of the poor workers must stop. The government must think about it”. Referring to Saudi Arabia’s Nitaqat initiatives to regularise overseas workers, Chandy said global trends indicate a further shrinkage in the job market for expatriates in the Gulf and it might force more workers to return for good. He also sought federal assistance for their rehabilitation. “We must think about how we can rehabilitate (them) and in what way we can (exploit) their expertise. (We have) chalked out a rehabilitation package but lack of resources is a problem,” he said. Quoting a McKinsey report on India’s economic geography for 2025, he said there was an opportunity for companies to target Kerala as a production base as one of the eight high performing states based on growth, per capita income, productivity of workers, literacy rate and electriп¬Ѓed households. “Domestic consumption in Kerala is high, thanks to a great extent to remittances from our emigrants. Companies which choose to set up businesses in Kerala are likely to п¬Ѓnd a strong consumer base and ready demand,” he said. An interactive session chaired by V K Singh, the junior minister for external affairs and overseas Indian affairs, with Chandy sitting among the audience was also held separately yesterday to discuss issues of labour and employment in the Gulf. Charity initiative Maharashtra Governor C Vidyasagar Rao walks alongside Shiv Sena chief Uddhav Thackeray and Yuva Sena chief Aditya Thackeray at Uddhav’s photography exhibition organised to raise funds for drought affected farmers, in Mumbai yesterday. Omar blames PDP for governor rule in Kashmir AFP New Delhi K ashmir was brought under New Delhi’s direct rule yesterday after political rivals failed to agree on a powersharing coalition, more than two weeks after elections in the country’s only Muslim-majority state. A federal government spokesman conп¬Ѓrmed that President Pranab Mukherjee had placed Governor N N Vohra in charge of the state, the day after the acting chief minister stepped down. Dutt returns home as furlough plea pending IANS Mumbai B ollywood actor Sanjay Dutt, who went to Yerawada jail in Pune at the end of his 14-day furlough but did not surrender and returned home on Thursday, is in Mumbai with family, awaiting a decision on his request for its extension, his lawyer said. “The authorities have yet to inform us on his application seeking extension of furlough leave. Till then, he is at home in Mumbai,” lawyer Hitesh Jain said. Dutt, 55, who flew to Pune and went up to Yerawada Central Jail, spent a few hours in the vicinity of the prison and later went away without surrendering though his 14-day furlough had ended. Jain claimed a government official had said that it was not necessary for the star to go back to jail till a decision was taken on his December 27 application for extension of his furlough. He had been granted a 14-day furlough to go home on December 24. Before leaving for Pune on Thursday, Dutt told media persons that his application for extension of furlough was still under process. “The authorities have yet to inform us on his application seeking extension of furlough leave. Till then, he is at home in Mumbai” “We made the request for extension of the furlough on December 27 and it is still under process. As the laws stipulate that I must surrender myself if I am not granted the extension, I am doing it now,” he had said. Earlier Dutt was released on furlough in October 2013 for two weeks on health reasons, followed by a similar leave in December 2013 to tend to his ailing wife, Maanyata. The frequent furloughs had led to charges of favouritism. Dutt’s latest furlough saw him attending a special show of the latest Aamir Khan megahit, PK, and celeb parties. In February last year, the Bombay High Court had commented on the diligence in granting the actor’s requests for furlough which was not visible in case of other convicts who applied for leave. Dutt was convicted in 2007 for illegal possession of an AK-56 assault rifle during the 1992-93 Mumbai communal conflagration before the March 12, 1993, serial bomb blasts in the city and sentenced to six years jail. The Supreme Court had upheld the conviction in 2013 but reduced the sentence to п¬Ѓve years, less time already served. “The president has approved the governor’s rule for the state,” home ministry spokesman M A Ganapathy said after Vohra had made an official recommendation to Mukherjee. The move comes more than two weeks after the December 23 announcement of results of the state elections which saw all parties fall way short of the 44 seats needed for an absolute majority. Chief Minister Omar Abdullah, whose National Conference Party won only 15 seats after suffering an electoral meltdown, had stayed on as caretaker but he sub- mitted his resignation to Vohra on Thursday. “I am sorry after an election with such a good turnout we have a situation of governor’s rule but as I’ve maintained the onus lies with PDP” The imposition of direct rule means local representatives will have no say in the running of Kashmir for the time being, a particular sensitive issue in a region where rebels have been п¬Ѓghting to secede from India since 1989. Henious crime It comes after the two parties which won the most seats— the Peoples Democratic Party (PDP) and Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) - failed to work out a power sharing arrangement or cut a deal with other smaller parties. The PDP won 28 seats while the BJP won 25, mainly mopping up in the mainly Hindu Jammu region in the south of the state. Abdullah, who suffered a backlash over his government’s handling of devastating floods in September, said it was vital Uber rape case driver вЂ�tried to kill victim’ IANS New Delhi A Two men who were arrested in connection with the alleged abduction and gang-rape of a Japanese tourist, are brought to a court in Kolkata yesterday. Police have arrested five men in connection with the alleged abduction and gang-rape of a 23-year-old Japanese tourist, officials said. the state not be left in “limbo”. “I am sorry after an election with such a good turnout we have a situation of governor’s rule but as I’ve maintained the onus lies with PDP,” he said on Twitter. PDP spokesman Nayeem Akhtar said that the party was still in discussions with a range of parties. “It might lead to a brief spell of governor’s rule but ultimately a popular government has to come and serve the state because the people have voted for the government,” Akhtar told NDTV. court in the capital yesterday reserved till January 13 its order on framing of charges against a Uber cab driver accused of raping a woman executive. The court decision was prompted by the prosecution claim that the accused had endangered the victim’s life by causing grievous injuries during the sexual assault. Additional sessions judge Kaveri Baweja reserved the order after the prosecution and defence concluded arguments in the case. Shiv Kumar Yadav, 32, allegedly raped the woman executive on the night of December 5 in the cab she hired to head back home in north Delhi’s Inderlok area. Special public prosecutor Atul Srivastava informed the court that Yadav had caused injuries to victim while committing rape. He requested the court to frame charges against Yadav as he had endangered the victim’s life. Relying on the victim’s statement in the case, he further added that Yadav had tried to strangle the victim and few scratch marks were found on her neck. The defence counsel argued that the injuries on neck did not establish that Yadav had been trying to strangle the woman. While the prosecution claimed that the accused had taken the woman to an isolated place with the motive of committing the heinous crime, the defence counsel said Yadav had merely followed the route to the victim’s house as per her direction. The prosecution added that Yadav had also threatened the victim. Srivastava said that threatening a woman itself was enough evidence to frame charges against Yadav in the case. The chargesheet was п¬Ѓled on December 24 - 19 days after the rape - and the cognizance of the chargesheet was taken by a magistrate court on January 5. Police have charged Yadav for rape, kidnapping or abducting a woman, criminal intimidation and voluntarily causing hurt under the Indian Penal Code. In the over 100-page chargesheet, the police cited 44 prosecution witnesses in support of its case. Gulf Times Saturday, January 10, 2015 13 INDIA INITIATIVE TELECOMMUNICATIONS POLITICS PUNISHMENT ENTERTAINMENT Modi calls for educational institutions in Muslim areas Kerala first state to be fully covered under NOFN Will give full statehood to Delhi, pledges BJP School cuts boys hair for damaging bench Lunchbox director thrilled at Bafta nomination Prime Minister Narendra Modi has directed officials to plan for educational institutions in minorities, especially Muslim, populated areas and also to work out details for imparting technical education and skill development to them, said Union Minister of State for Minorities Welfare Mukhtar Abbas Naqvi. He said the prime minister had called a meeting on Wednesday, where he asked them to prepare the plans. Addressing the 17th foundation day of Maulana Azad National Urdu University in Hyderabad, Naqvi said the government would identify and allot land for setting up Industrial Training Institutes and polytechnics in minoritydominated areas which lack educational facilities. Kerala will become the first state to be fully covered by the National Optical Fibre Network (NOFN) project, the department of telecom (DoT) officials said. Under the NOFN project, the government plans to connect 250,000 gram panchayats through broadband by 2016 end. Kerala will become fully connected by March, 2015. Communications and IT Minister Ravi Shankar Prasad will launch the process of connecting the first district in the state on Monday. Sources also said the government is mulling a levy on telecom operators’ annual spectrum usage charges towards the Swachch Bharat campaign (cleanliness drive) launched by Prime Minister Narendra Modi. Delhi will get full statehood if the BJP comes to power, a party leader said yesterday. Speaking to reporters at the Ramlila Maidan in New Delhi ahead of Prime Minister Narendra Modi’s rally today, Bharatiya Janata Party leader Prabhat Jha said: “We had promised in our manifesto that we will give full statehood to Delhi but for that we have to come to power.” In the run up to the Lok Sabha elections last year, Modi had promised to grant full statehood to Delhi after coming to power. The promise was also a part of manifesto of the Delhi BJP in the 2013 assembly polls. “The promises made by us in our manifesto will be fulfilled,” assured Jha. A high school principal in Patna allegedly abused four students and cut their hair after they damaged a bench in the class, police said yesterday after registering a complaint in this regard. Four class VIII students — Sidharth Pandey, Shivam Kumar, Shubham Kumar and Gulshan Kumar — have accused Ruby Singh, principal of Devi Dayal High School of humiliating them and cutting their hair after a school bench was damaged. Patna superintendent of police Shivdeep Lande said an FIR has been registered and police have begun investigation in the case. “We would take proper action after interrogating the accused principal,” he said. It’s a great way to start the New Year, says Indian director Ritesh Batra, whose debut feature movie The Lunchbox has been nominated in the Film Not in the English Language category of the British Academy Film Awards 2015. “It’s an incredible honour for me and my team. I am in London right now, and I just heard about it, and we are honoured to be nominated alongside the finest films of the year. It’s a great way to start the New Year,” Batra said. The nominations for the awards, organised annually by British Academy of Film and Television Arts (BAFTA), were announced in London yesterday. 300 Secret Service agents вЂ�to guard’ US president Cityscape Calls to boost spendings threaten govt deп¬Ѓcit targets IANS New Delhi T he Delhi Police and other agencies have begun making elaborate security arrangements for the visit of US President Barack Obama who will be the chief guest at the Republic Day parade here. However, the security details will be п¬Ѓnalised only after the arrival of a US advance team on January 13, officials said. Over 300 US Secret Service agents are expected to be part of Obama’s security cover as he arrives in India on January 25. The officials said Obama would be lodged at the ITC Maurya hotel during his stay in the capital. “Over 20 members of the advance team of the US Secret Service, the federal law enforcement agency responsible for the protection of the US president, are expected to arrive in the capital on January 13,” said an official, who did not wish to be named. The official said that over 270 Secret Service agents are expected to come in the days leading to Obama’s arrival on January 25. The official said Obama was accompanied by 190 Secret Service agents in 2010. “We are yet to get the exact number of his security personnel, but we expect that the number will be over 300,” another official said. Officials said they have been communicating with US agencies regarding security arrangements but were waiting for the arrival of US advance group. The security arrangements are expected to be more challenging this time compared to 2010 as Obama will be seated in the open on Rajpath for the Republic Day parade for more than an hour. Sources said that Rajpath will be closed for public from January 24 evening and government offices in the vicinity of Raisina Hill will be closed from January 23 till the end of Obama’s visit. Reuters New Delhi A People are silhouetted as they walk on a beach along the shores of the Arabian Sea in Mumbai yesterday. Tharoor, 11 others to face grilling in murder probe IANS New Delhi A friend of Sunanda Pushkar, who had dropped her to a south Delhi hotel from the airport, has been questioned in connection with her murder, Delhi Police said yesterday, adding 12 more people including her husband Shashi Tharoor will soon be questioned. Sunil Trakru, a businessman and a close friend of Pushkar, has been questioned twice, a few days before the registration of FIR (п¬Ѓrst information report) on January 4, a police officer said. He said Trakru’s name had surfaced during the questioning of Tharoor’s domestic help Shri Narayan Singh in November last year. Singh had again been questioned on Thursday. Singh was questioned for a few hours, during which he revealed that the couple had a п¬Ѓght a day before Pushkar was found dead. Singh had also told police that Trakru had dropped Pushkar from the Delhi airport to Hotel Leela Palace where she was found dead in her room (number 345) on January 17. The couple had returned from Kerala on January 14 but Tharoor went to his house in Lodhi Colony, while Pushkar left for the hotel. Singh was questioned for a few hours, during which he revealed that the couple had a fight a day before Pushkar was found dead Delhi police officials also said they would soon question 12 more people including Tharoor, Pushkar’s son Shiv Menon, her two brothers Ashish Dass and Rajesh Pushkar and her cardiologist Rajat Mohan. They are also looking for a person named вЂ�Kaitie’ whose name surfaced during arguments between Tharoor and Pushkar, overheard by Singh. Police will also quiz Tharoor’s personal assistant (PA) Rakesh Kumar Sharma, and another family friend Sanjay Dewan, who found Pushkar dead when he came to enquire about her health. At that time, Sharma was also present in the hotel. Senior journalist Nalini Singh, with whom Pushkar was believed to be in touch over phone before her death, will also be called to join the probe, the officer added. Besides, two of Tharoor’s officers on special duty (OSD) - Shiv Kumar Prasad and Abhinav Kumar - along with driver Bajrangi will also be questioned. The special team investigating the murder yesterday visited the hotel where they questioned the staff and also went to the room where Pushkar had stayed. Police on Tuesday revealed that Pushkar was poisoned to death. weak recovery from India’s longest growth slowdown in decades is pushing Prime Minister Narendra Modi’s advisers to consider loosening п¬Ѓscal deп¬Ѓcit targets, risking the ire of investors, ratings agencies and the central bank. Ahead of the federal budget in February, Modi’s new team of advisers has argued for higher deп¬Ѓcits to fund infrastructure projects needed to remove bottlenecks constraining growth and to create jobs for a burgeoning workforce. Yet with debt service devouring 42% of federal spending, higher deп¬Ѓcits would revive risks of a ratings downgrade and delay an interest rate cut by the Reserve Bank of India (RBI). “Fiscal consolidation is important. But should it be at the cost of growth?” one senior п¬Ѓnance ministry official said. “We cannot afford to compromise with growth forever.” In a mid-year report to parliament last month, the п¬Ѓnance ministry’s new economic adviser Arvind Subramanian urged a comprehensive review of India’s medium-term п¬Ѓscal strategy to create space for higher capital spending. Economist Arvind Panagariya, named this week by Modi to run his new policy unit, has also argued for loosening deп¬Ѓcit targets to boost capital spending. Weak investment has been a prime cause of India’s worst economic performance in a Promo event quarter century, with two successive years of sub-5% growth before a weak recovery began during 2014-15. Portfolio investors pumped $40bn into India last year, betting on Modi’s promise of “better days” ahead, putting Indian shares and bonds among the best performers globally. To make good on that pledge, Modi plans to spend up to $50bn in the year to March 2016 on new roads, rail lines, ports and irrigation facilities. “Fiscal consolidation is important. But should it be at the cost of growth? We cannot afford to compromise with growth forever” “The most urgent priority (is) to build the productive capacity of the economy and launch a supply-side revolution,” said Jayant Sinha, a deputy п¬Ѓnance minister, adding that India needs growth rates of 7-8% to prosper. This strategy could mean ditching targets to trim the п¬Ѓscal deп¬Ѓcit to an eight-year low of 3.6% of GDP in 2015-16 and 3% the following year. The economy’s slowdown has depressed tax revenues to just 10% of GDP from a peak of 11.9% in 2007-08, forcing New Delhi to cut spending and roll over outlays to contain the deп¬Ѓcit in the past two years. This п¬Ѓscal year, Finance Minister Arun Jaitley will resort to similar methods to cap the deп¬Ѓcit at 4.1%, aides say. With a national debt at 70% of GDP and a consolidated п¬Ѓscal Businessman gets bail in chopper deal case IANS New Delhi A Bollywood actresses Neha Dhupia (left), Shilpa Shetty (centre) and Mandira Bedi pose for a photograph during a promotional event in Mumbai. deп¬Ѓcit above 7%, India’s public п¬Ѓnances are worse than its peers and it has spent recent years at risk of a downgrade of its sovereign credit rating to вЂ�junk’ status. Success in narrowing the federal deп¬Ѓcit by 1.2 percentage points to 4.5% last year helped ward off downgrades. Keeping India at the lowest investment grade rating, major rating agencies have urged New Delhi to invest more without increasing borrowing. “High п¬Ѓscal deп¬Ѓcits constrain India’s sovereign credit proп¬Ѓle,” Atsi Sheth, senior vice president at Moody’s, said. “If higher public investment was pursued by redirecting expenditures away from current and towards capital spending, thus supporting growth without increasing п¬Ѓscal risks, it would be credit positive.” Finance ministry officials say it is premature to say whether п¬Ѓscal targets will have to be jettisoned, as they are banking on windfalls from tumbling global oil prices and mobile spectrum and coal block auctions. With inflation declining steeply to 4.4% in November, the RBI is holding out prospects of a cut in its 8% benchmark interest rate, but Governor Raghuram Rajan is waiting for Jaitley’s budget before acting. A higher deп¬Ѓcit may compel the RBI to keep rates on hold, which Manish Wadhawan, managing director and head of rates at HSBC, said would spark a sell-off in bond markets that have rallied hard since Modi took power last May. court here yesterday granted bail to businessman Gautam Khaitan accused in a money laundering case related to the AgustaWestland VIP chopper deal. Granting bail to Khaitan, the Central Bureau of Investigation special judge V K Gupta directed him to furnish a personal bond of Rs1mn and two sureties of the like amount. The judge ordered Khaitan to surrender his passport, not to leave the country without prior permission of the court and not to tamper with the evidence in the case. During arguments, enforcement directorate (ED) prosecutor N K Matta opposed Khaitan’s bail plea alleging that he was behind the “parking” of alleged kickbacks in the matter and the agency was conducting further probe into the same. Defence counsel P V Kapur and advocate P K Dubey argued that the other accused, who were allegedly the recipients of purported bribe, had not been arrested so far while Khaitan was behind bars for over three months. Khaitan was on the board of the Chandigarh-based company Aeromatrix and was arrested a day after the ED conducted a search of his premises on September 22 last year. The supply of 12 VIP helicopters from AgustaWestland came under scrutiny after Italian authorities alleged that the company paid a bribe to clinch the deal with India, inked in February 2010. Following these allegations, the government on January 1, 2014, terminated the Rs36bn (about $770 million) deal with AgustaWestland for the purchase of the choppers meant to ferry the president, the prime minister and other VIPs. The (ED) in November 2014 had п¬Ѓled the chargesheet naming Khaitan, his wife Ritu, Chandigarh-based п¬Ѓrm Aeromatrix and two Italian middlemen, Carlo Gerosa and Guido Haschke, as accused in the case and booked them for the offences under the provisions of the Prevention of Money Laundering Act (PMLA). 14 Gulf Times Saturday, January 10, 2015 LATIN AMERICA PEOPLE VIOLENCE VERDICT TRAGEDY CRIME Cuba denies convening media over Fidel’s illness Seven shot dead at Venezuelan funeral Peru ex-president handed jail term for embezzlement Three die as boat capsizes off Costa Rica 13 police officers held in missing journalist case Cuba yesterday denied reports it had summoned foreign media to a press conference amid reports that 88-year-old Fidel Castro’s health is deteriorating. Such press conferences are always convened by e-mails or cell phone text messages and none have been sent, said an official at the International Press Centre, the Foreign Ministry section that deals with foreign media. News outlets in Miami, a stronghold of antiCastro sentiment in the huge Cuban immigrant community, had reported that a news briefing had been called for yesterday. They hinted it was because the former longtime president had suffered a downturn in his health. Gunmen opened fire at mourners during a funeral in Venezuela, killing seven people and leaving five wounded, authorities and local media said. The shooting took place in the old cemetery of the central town of Turmero, the attorney general’s office said in a statement. “Several armed men fired at a group of people at the funeral of a friend who had died days earlier,” the statement said. Local media said the victims died in a fight between rival gangs as one group buried one of its members. According to the El Nacional newspaper, attackers from the “Tonito de Paya” gang were enemies of the man being buried and blamed five earlier murders on him. A Peruvian court sentenced former president Alberto Fujimori, already in jail for a governmentbacked massacre, to eight years in prison on charges of embezzling state funds to manipulate the media. The sentence has only symbolic effect since jail time does not accumulate in Peru. Fujimori is currently jailed on a 25-year sentence over the killing of 25 people by a governmentbacked death squad in the course of Peru’s war against the Maoist Shining Path rebel group. Fujimori was also ordered to pay $1mn in civil damages, for ordering funds diverted from the Armed Forces and National Intelligence Service to newspapers to discredit his political opponents. Three people were killed when a catamaran with 108 passengers and crew on board capsized off Costa Rica’s Pacific coast. There were many foreign tourists on board the catamaran, reports said. The director of the Costa Rican Firefighters Corps, Hector Chaves, and the Red Cross, however, had initially put the toll at four. Costa Rica’s public security ministry said two of the victims were a 70-year-old US woman and an 80-year-old British man. Costa Rican authorities and private boats recovered 103 people from the catamaran, while rescuers were continuing their search for two other people who were missing. Thirteen police officers in the Mexican state of Veracruz have been arrested for their suspected involvement in the disappearance of journalist Jose Moises Sanchez. At the same time, the National Commission of Human Rights called on the country’s federal attorney to investigate the case of the missing reporter. Sanchez disappeared on January 2 after a group of gunmen in civilian clothes broke into his house in the Veracruz town of Medellin de Bravo and hustled him away. Sanchez, 49, is the director and editor of the local weekly magazine, La Union, and worked as a citizen-journalist posting complaints about alleged corruption on social-networking sites. Shopping no fun in shortage-hit Venezuela AFP Caracas I t may have oil galore, but Venezuela also boasts an economy so gutted by inflation and shortages that for many people shopping is a second job. Venezuelans make daily treks to automated bank teller machines as runaway price hikes gnaw away at their purchasing power. Shortages abound of such basics as milk, soap, diapers and toilet paper. Stores open late or close early because they run out of stuff to sell. Way before dawn, lines form outside department stores. Bartering is back. Social media serve as heads-up sentinels to report which shop has what. And for many Venezuelans, free time is no longer so free. A survey by pollster Datanalisis found that they spend on average eight hours a week equivalent to a work day - simply running around to stores trying to buy the essentials of everyday life, many of which Venezuela imports. Just listen to Carlos Jones, a 50-year-old electrician waiting in line to buy detergent. He often shops before he goes to work, during his lunch break and after his shift ends. “Today I have been to three stores. In one I got deodorant and in another, soap. Yesterday I spent three hours in line and when it came my turn, they were out of what I wanted,” Jones said. What is wrong with this picture? In part, the problem is the sharp decline in oil prices. That stings in Venezuela, which gets 96% of its foreign currency from oil, of which it has the world’s largest proven reserves. What is more, the leftist government of President Nicolas Maduro - heir to the late п¬Ѓrebrand Hugo Chavez - maintains strict currency controls, making it hard for importers to get the dollars they need to bring in everything from cars to medicine. Fewer dollars floating around puts pressure on the black market exchange rate for the local currency, the bolivar. And as importers have trouble buying dollars at the cheap, official, government-set rate of 6.3 bolivars to the dollar, they often turn to the black market to get greenbacks. There, a dollar is 30 times more expensive. And of course, that cost is passed on to consumers. For months last year, the government simply stopped publishing inflation п¬Ѓgures. In late December, it п¬Ѓnally reported that the rate for the 12 months to November 2014 topped 63% - one of the highest in the world. The economy is also in recession, it added. So, it’s a mess out there. Maduro travelled to China this week in search of investment to boost the economy. He said in Beijing that he got pledges for $20 billion. Mauricio Tancredi, chairman of Consecomercio, a chamber of commerce, said he was worried about the drop in Venezuelans’ quality of life. Indeed, fury over shortages, crime and inflation triggered riots last year that left 43 people dead. “We have never seen so many businesses closing early or opening late because they have no merchandise to sell,” Tancredi told a local radio station. Several restaurant owners said they have employees whose only job is to scurry around to supermarkets and shops buying food for the eateries to cook and serve. Re-enacting history People cheer as a convoy of military trucks, re-enacting the triumphant 1959 march into Havana by Fidel Castro and his “Barbudos” (bearded) guerrillas, drive past in Havana. 36 Cuban activists вЂ�freed in last two days’ Reuters Havana O ne of Cuba’s most prominent dissident groups yesterday said 36 opposition activists, including a popular hip-hop artiste, have been freed in the last two days as part of a deal to improve relations between Cuba and the US. The dissident Patriotic Union of Cuba (Unpacu) said 29 of its members were among those released, and that most had been warned by the communist gov- US admits being overly upbeat on Haiti quake aid AFP Port-au-Prince U S officials admitted that Washington had been over ambitious in its plans to help Haiti in the aftermath of a devastating earthquake, despite pledging about $4bn in aid. Five years after the 7.0 quake levelled much of the capital Port-au-Prince on January 12, 2010, more than a million survivors left homeless have been rehoused. But thousands still live in canvas makeshift shelters as Haiti’s own efforts to get back on its feet have been hampered by political instability and by a cholera outbreak blamed on UN peacekeepers’ poor hygiene. US officials said there had been a lot of progress made in health and security, as well as in encouraging economic growth and “incredible gains in the agricultural sector” with yields in some crops up 300%. But acting assistant administrator for the US agency USAID, Elizabeth Hogan, told reporters “the US government was very ambitious in terms of what we expected to accomplish as far as the shelter sector is concerned.” “We had expected many more donors to come forward to partner with us to build new homes, new settlements. And those funds did not materialise,” she said. Even before the quake hit, there had been a 500,000 unit housing shortage in the capital, a gap which on its own would have cost $15bn to fill. The total amount of international aid pledged for Haiti between 2010 and 2020 was $16bn. “So, I think you can understand the resources really aren’t there to do everything,” said the state department’s Haiti special co-ordinator Tom Adams. “We realised that we are certainly not going to be able to come anywhere close to building the kind of hous- ing stock that Haiti requires,” added Hogan. Now the US administration is working with the Haitian government to help Haitians build homes, shifting its focus on housing п¬Ѓnance and unlocking funds from п¬Ѓnancial institutions. With the impoverished Caribbean nation also mired in a political crisis, Hogan admitted that in democracy building “we haven’t been as successful, quite frankly, because a lot of that depends on the government of Haiti taking certain actions.” “We were I think greatly optimistic about how far and how fast they would be able to go over the last five years.” Long-delayed elections have now been put off until early next year, under a deal signed by President Michel Martelly. Martelly has called for the parliament to convene on January 12 to endorse the appointment of new Prime Minister Evans Paul, who will be tasked with forming a government. ernment they would be sent back to prison if they continued their opposition activities. “Our freed prisoners are committed to continue п¬Ѓghting for the democratic Cuba which we all want,” Unpacu’s leader Jose Daniel Ferrer said in a statement. “The Unpacu activists have left prison with more energy, force and motivation than they had when they were jailed.” Cuba’s commitment to free a list of 53 prisoners was a key part of the historic deal announced on December 17 under which the Cuban and US governments agreed to renew diplomatic relations after more than 50 years of hostilities. Most of those released over the last two days were accused of such offences as resisting arrest and threatening police officers, and had been given short sentences of two to п¬Ѓve years. The hip-hop artiste, Angel Yunier Remon, known as “The Critic”, was serving the longest prison term, eight years. Remon was arrested in 2013 after painting a giant slogan, “Down With The Dictatorship!”, on the street outside his home in the Honoured eastern city of Bayamo. He staged several hunger strikes while behind bars, and said he contracted cholera due to the unsanitary prison conditions. “I’m so happy to be back with my family, my children, and my wife,” Remon said from Bayamo yesterday morning, adding that he had no plans to give up working for the opposition. “Our country is still a dictatorship,” he said. “We’re going to keep battling for an independent and truly free Cuba.” Dissident groups say most of those freed over the last couple US п¬Ѓrms begin push to lift Cuba export rules Reuters Washington U Paraguayan Anacleto Escobar (centre), veteran of the Chaco War (1932-1935) fought between Paraguay and Bolivia, is assisted during a ceremony coinciding with his 100th birthday in which he and his wife Cayetana Roman received a house - the first in their lives they own - as a gift for his merits, in Neembucu, Paraguay. of days have been released on the condition that they report regularly to the authorities. Cuba’s government does not comment on police actions involving detentions, and it has said nothing about this week’s releases. It typically describes dissidents as “mercenaries” in the pay of the US. The top US diplomat for Latin America, US assistant secretary of state, Roberta Jacobson, is due to visit Havana on January 21-22 for talks with Cuban officials on the normalisation of diplomatic ties and migration issues. S businesses are pushing to entirely lift an embargo on Cuba and win a larger share of its imports in the wake of President Barack Obama’s move to ease sanctions against the island nation. The Caribbean country imports 80% of its food, a market valued at $1.7bn. The US lags behind Venezuela, China, Spain and Brazil in goods imported to Cuba, which is just 90 miles from the US coast. At one point, US growers supplied about 30% of Cuba’s now $300mn annual rice market. A rule change in 2008 that forced payment on order, rather than on receipt, pushed US producers out of the market. Total US exports of all goods to Cuba in the first 11 months of 2014 were just $273mn. Devry Boughner Vorwerk, chair of the newly launched US Agriculture Commission for Cuba and vice president at Cargill, the largest privately owned US food processor, said there is an opening to shape Obama’s rules as they simultaneously press Congress to lift the more than 50-year US embargo. “We’ve already come together and ... are working on some solid recommendations,” Vorwerk said at a coalition launch event. The coalition represents nearly 30 food companies and industry groups. A bipartisan group of lawmakers spoke, though opposition to the president’s plan is expected from some Republicans in Congress. Obama announced on December 17 he would direct his administration to allow US companies to sell agricultural and building materials, equipment used by private-sector entrepreneurs and telecommunications services in Cuba. Among the changes Obama instructed the US departments of treasury and commerce to make was to tweak the definition of “cash in advance” to ease agricultural exports such as rice. Gulf Times Saturday, January 10, 2015 15 PAKISTAN/AFGHANISTAN Peshawar schools to reopen on Monday AFP Peshawar S chools in the restive northwestern Pakistani province of Khyber Pakhtunkhwa will reopen on Monday, an official said, after an extended break following a brutal Taliban assault which killed 150 people, the country’s deadliest-ever attack. Provincial Information Minister Mushtaq Ghani said that “all the necessary security measures” have been taken for 35,000 educational institutions, including schools, colleges and universities to reopen on January 12. The government had an- Afghan cop dies in blast nounced a winter vacation due to security threats after the deadly attack on the militaryrun school in Peshawar killed 150 people, including 134 children. Ghani also said the authorities would build walls around government-run education institutions which would extend at least 8ft (2.4m) high, and would also introduce community policing systems whereby civilians with experience operating weapons would be trained and paid to guard educational facilities. Private sector schools, colleges and universities have meanwhile been issued with strict guidelines with requirements including having guards, Ghani said, adding that schools’ licences could be revoked if they did not follow the rules. “All the necessary security measures” have been taken for 35,000 educational institutions, including schools, colleges and universities to reopen on January 12” In response to the Taliban attack, Pakistan’s parliament last week passed a constitutional amendment approving the establishment of military courts to hear terrorism-related cases. Prime Minister Nawaz Sharif also lifted the country’s sixyear-old moratorium on the use of the death penalty, reinstating it for terror cases in the wake of the slaughter at the school. SCHOOLS ASKED TO RAISE FUNDS: The Capital Administration and Development Division (CADD) of Islamabad has directed all schools to raise funds for hiring security guards. The institutions were asked to channelise their school management committees (SMC) for the fund raising. “It is decided that the SMCs will hold meetings to arrange their armed security guards by raising funds. The committees may collect the funds through volunteer parents or other well-off families,” said a CADD spokesman. He said Minister of State for CADD Usman Ibrahim presided over a meeting to discuss the security arrangements in the schools and colleges. During the meeting, it was decided that PWD would prepare a cost estimate for security matters for which resources would be arranged by CADD. A senior official of CADD said it was strange that the PWD was being asked to prepare cost estimates just three days before the reopening of the schools. He said all schools were supposed to complete their security arrangements by February 10 after which a team would inspect the arrangements to issue them a certiп¬Ѓcate for the reopening of the institutes. Repair work after bomb blast IANS Kabul O ne policeman has been killed and two others wounded in a bomb attack in the southern Afghanistan province of Uruzgan, police said yesterday. The blast took place on Thursday after a police vehicle travelling along a road in Mehar Abad locality of provincial capital Tirin Khot was struck by a bomb planted by the roadside, deputy provincial police chief Mohammad Islam Kochai told Xinhua news agency. The injured were shifted to a hospital, he said, blaming the Taliban insurgent group for triggering the blast which occurred at around 3.30pm. The police Ranger vehicle was also destroyed in the explosion, he added. The Taliban have intensiп¬Ѓed attacks over the past couple of months as the Afghan National Security Forces (ANSF) assumed full security charges from Nato-led troops after a four-year security transition. Pakistan plans law to regulate NGO funding The Pakistan government plans to tighten the regulatory mechanism for international funding to nongovernment organisations (NGOs), and the Securities and Exchange Commission of Pakistan (SECP) have been given the task to formulate a law in this regard. The law will regulate international and local NGOs and individuals receiving and utilising foreign contribution. Currently the total number of NGOs registered with the SECP is only 634. The figure is not even 1% of total 64,000 companies registered with the regulator. Under the proposed law, all NGOs will have to be registered with the SECP which will also ensure that funding is utilised for the same purpose it has been received for, an official of the commission said. The draft law is being finalised and likely to be forwarded to the Ministry of Finance next week. A recent meeting chaired by secretary law and attended by representatives of SECP, economic affairs division (EAD), ministry of finance, State Bank and the federal board of revenue (FBR) discussed the new law. NGOs will be required to seek registration with the EAD and sign a memorandum of understanding (MoU) with the division over project details. This registration and MoU will be valid for five years and is renewable. Currently, the NGOs are registered at four different government offices starting with Societies Act 1860 falling under the provinces. Most of the local NGOs, madarassas, and such other organisations are registered under this law. However, they can operate at the national level. The second law applicable at the district level is the social welfare law. Four Qaeda rebels killed AFP Karachi P akistani police yesterday said they had shot dead four regional Al Qaeda militants including a senior leader in an early morning encounter in the port city of Karachi. The leader, named as “Sajjad” — also known as Kargil — was said to be a Bangladeshi who moved to Pakistan in 2009 and specialised in making IEDs and suicide jackets. He was also the Karachi commander of Al Qaeda in South Asia, a new branch of the global militant outп¬Ѓt that launched last September, a local police official said. “The Crime Investigation Department (CID) of the police raided a house in Qayyumabad neighbourhood in the eastern part of Karachi where the suspects were plotting a terrorist attack,” the ofп¬Ѓcial said on condition of anonymity. Umar Khatab, a senior policeman in the CID, conп¬Ѓrmed the killings. “Sajjad came from Bangladesh to Pakistan in 2009 and lived in Waziristan where he swore allegiance to Asim Umar, the Pakistan chief of AQIS,” Khatab said. He said the police recovered ammunition, weapons and a suicide jacket from the house after the shootout. It was not immediately possible to conп¬Ѓrm the details of the event with independent witnesses from the neighbourhood. Rights activists say suspected militants who are cap- tured are often killed in staged encounters by security forces. Meanwhile, three paramilitary soldiers were killed and four others injured in the southwestern province of Baluchistan in an attack by unidentiп¬Ѓed gunmen. The incident occurred around 70kms (around 40 miles) north of port of Gwadar. “Three paramilitary soldiers were killed when their vehicle was п¬Ѓred at in Sunster Zahiran area of Baluchistan near the Iran border,” local administration official Balach Gichki said, adding that four other soldiers were wounded in the incident. Abdul Hameed Abro, another senior administration official, conп¬Ѓrmed the incident. Oil and gas rich Baluchistan is Pakistan’s largest but least developed province, which has long been wracked by a predominantly secular secessionist insurgency that was revived in 2004. Pakistan has upped the ante against the Taliban and Al Qaeda linked militants after a December 16 attack on a military-run school in the northwestern city of Peshawar. The country’s deadliest terror attack killed 150 people, 134 of whom were schoolchildren. Pakistani officials have said they plan to hang 500 convicts in coming weeks, drawing protest from international human rights campaigners. Last week, Pakistan parliamentarians approved a law for the establishment of a military court to speed up justice in terror-related cases. Action against Jamia Hafsa over Daish video Internews Islamabad I Railway workers starting their work for replacement of damaged railway track in Jaffarabad yesterday. A bomb blast blew up a section of track in Jaffarabad. slamabad police have decided to register criminal cases against the Shohada Foundation and students of Jamia Hafsa for вЂ�waging war’ and inviting terrorist organisation Islamic State (IS), also known by its Arabic acronym Daish, to avenge Operation Silence, that was carried out against the Lal Masjid in 2007. Senior police officials said Father on the run after killing п¬Ѓve children AFP Karachi P akistani father-of-six is on the run after strangling п¬Ѓve of his children to death, apparently believing the sacriп¬Ѓce would endow him with magical powers including alchemy, police said yesterday. Ali Nawaz Leghari, 40, killed the two girls and three boys, aged between three and 13 overnight Thursday in the village of Saeed Khan, some 230kms (140 miles) north of Karachi. “The man’s п¬Ѓnancial condition was bad but he was also learning black magic and it seems that he made the sacriп¬Ѓce to excel in the craft,” police officer Qamaruddin Rahimo said. Amjad Sheikh, the district’s police chief, conп¬Ѓrmed the incident which occurred while Leghari was undertaking a 40day spiritual journey, known as a вЂ�Chilla’ prescribed to him by a pir (living saint) that he hoped would teach him the art of alchemy. Rahimo said that on Tuesday Leghari had attempted to poison the family’s dinner but was spotted by his wife, resulting in a bitter quarrel. The wife along with their eldest son left the house to go and stay with her parents. With the pair out of the way, Leghari was able to successfully carry out his plan to sedate the remaining п¬Ѓve children and then used a rope that was found at the scene to strangle them, said Rahimo. “He strangled them one by one inside the room and later dumped them on a bed in the courtyard,” he said, adding police were now hunting Leghari down. Black magic practices are rooted in mystic Suп¬Ѓ lore and have traditionally been the domain of pirs and aamils (sorcerers). The practice is particularly strong in rural parts of the country including the impoverished southern Sindh province where the killings took place. Hanging cancelled after last-minute pardon AFP Lahore A uthorities in Pakistan’s central Punjab province on Thursday cancelled the hanging of a convicted sectarian militant after the victim’s family pardoned him, officials and a family member have said. The case is seen as a test of the government’s plan to execute convicted terrorists in the aftermath of a school massacre that claimed 150 lives in the country’s deadliest terror attack. The stay of execution came as a roadside bomb killed four Pakistani security officials in a region where the military has been battling Taliban and Al Qaeda militants for more than a decade. The pardoned militant, Ikramul Haq, is a member of banned Sunni militant outп¬Ѓt Lashkar-e-Jhangvi who was sentenced to death by an antiterror court in 2004 for killing a Shia three years earlier. He was set to be hanged in the eastern city of Lahore early Thursday but his family came to a deal with the victim’s relatives on Wednesday night, Haq’s lawyer, Ghulam Mustafa Mangan, said. Murder can be forgiven under Pakistani law in exchange for blood money, while rival militant groups may choose to pardon each others’ convicted killers. “The hanging was cancelled after we reached a compromise with the complainant’s family. They have pardoned my client,” Mangan said. Under the compromise Lashkar-e-Jhangvi will pardon two Shia convicts and Shias will pardon three other Lashkar convicts languishing in different jails of Punjab for sectarian killings, he said. Altaf Hussain Shah, a representative of local Shia community, conп¬Ѓrmed the deal. Ehsanul Haq, brother of Ikramul Haq, conп¬Ѓrmed the cancellation of the hanging. A senior prison official also conп¬Ѓrmed the move, adding: “A magistrate has recorded the statements and the execution has been stayed. Now the court will decide whether the person (should) be acquitted or not.” Pakistan last month lifted a six-year moratorium on the death penalty in terror cases in the wake of the Taliban’s horriп¬Ѓc massacre at an army-run school in the city of Peshawar, and has so far executed nine people. The attack on December 16 left 150 people dead, the vast majority of them children. Pakistani officials have said they plan to hang 500 convicts in the coming weeks, drawing protest from international human rights campaigners. APPEALS REJECTED: A Pakistan court yesterday rejected the mercy appeals of two death row convicts, while a similar plea of another was dismissed as his execution was already put on hold. The Sindh High Court cancelled the appeal of convicts Saeed Awan and Behram Khan on the grounds that they did not receive a presidential pardon, Dawn online reported. Khan’s execution will take place on January 13 and of Awan on January 15. The appeal п¬Ѓled by convict Shafqat Hussain was dismissed since the federal interior ministry had already halted his execution. He was sentenced to death in September 2004 for abducting and killing a child. The execution was also halted for three other convicts, who were sentenced to death for an assassination attempt on former president Pervez Musharraf in Rawalpindi in 2003. The Lahore High Court’s Rawalpindi bench, headed by Justice Amin Qazi, heard the petition п¬Ѓled by convicts Khalid Mehmood, Nawazish Ali and Mushtaq Ahmed. on Thursday that they had sought the legal opinion of the prosecution department over a press release and video massage, made by students of the Jamia Hafsa seminary, inviting Daish to come to Pakistan. The press release and video were issued by the Shohada Foundation. A report was prepared on the issue by superintendent of police Rizwan Omar Gondal, which was forwarded to inspector general (IG) Tahir Alam Khan for further action. Imran added into Cricketing Divorcees’ Club Cricketer-turned-politician and Pakistan Tehreek-e-Insaf (PTI) chairman Imran Khan is now the latest addition to the illustrious membership roll of International Cricketing Divorcees’ Club, joining cricketers like Sarfraz Nawaz, Muhammad Azharuddin, Vinod Kambli, Wasim Akram, Sohail Tanvir, Zaheer Abbas, Phil Tufnell, Shane Warne, Shoaib Malik and Glenn McGrath. In Shoaib Malik’s case, it was reported that the all-rounder was already married to a girl named Ayesha Siddiqui which Malik denied initially. It was confirmed later that Malik had married Ayesha and after seeking a divorce, the former captain of Pakistan had married Sania. Indian tennis star Sania, who was earlier engaged to her childhood friend Sohrab Mirza, called off her engagement to marry Malik. While divorce is one of the most common topics of dinner time conversations in conservative nations like Pakistan, a good number of British cricketers like Darren Gough, Graham Thorpe, Mark Butcher and Dominic Cork have also seen their marriages breaking up while on England duty, and most of them had chosen to re-marry. Most widely-subscribed cricketing website “ESPN Cricinfo” states: “In England, marital break-up among cricketers has increased steadily, a trend in step with a wider society that has seen the divorce rate treble in a generation.” 16 Gulf Times Saturday, January 10, 2015 PHILIPPINES Diaper-wearing volunteers guard citizens at procession Reuters Manila T hree hundred volunteers in diapers were on hand yesterday to form human barricades during a jam-packed open-air Catholic Mass in Manila before a statue of Jesus Christ was paraded through city streets for the annual “Black Nazarene” procession. More than 5mn Filipinos attended Mass at a park, with the Metro Manila Development Authority assigning adult diapers to volunteers who could not leave their posts, in a trial days before a visit by Pope Francis. Emergency and police officials said they expect a much bigger crowd when the leader of 1.2bn Roman Catholics celebrates Mass at the same venue on Jan 18. Authority chairman Francis Tolentino said only the volunteers at yesterday’s Mass were required to wear the adult diapers. “About 300 of them because they cannot leave their positions otherwise people will come in and break the line,” he said. About 2,000 diapers were distributed to civilian auxiliaries on traffic duty for the procession, but there was no data on how many used them. In a radio interview, Tolentino said defaulters would not be penalised as the exercise was optional. “I feel so uncomfortable wearing it,” a man on traffic duty told Reuters when asked why he did not wear the diaper. The experiment invited much ridicule on social media with critics questioning why the city authority did not rent more portable toilets. Many devotees were seen urinating in the park. “This has got to be the dumbest idea of the year,” said Twitter user Joseph Brian Calimon. An authority official defended the experiment as a “practical” option, adding in a statement that adult diapers are “used regularly as standard operating gear” by US soldiers, Buckingham Palace guards, and astronauts. After the Mass, about a million people took part in the procession for a 5km walk to the Basilica of the Black Nazarene with a centuriesold black statue of Jesus Christ, which is widely believed to have healing powers. Barefoot devotees lined the streets to see and try to touch the life-size statue of Jesus kneeling with a cross, in a festival held in the former Spanish colony for more than 200 years. At least one devotee was crushed to death, while hundreds fainted or suffered minor injuries, as a sea of humanity was funnelled through narrow streets for the largest parade in the predominantly Roman Catholic country. Devotees clamber on top of one another to touch the religious icon (top centre) of the Black Nazarene during the annual religious procession in Manila yesterday. 5.5mn take part in parade ahead of Pope Francis’ visit AFP Manila M Traffic enforcers of the Metro Manila Development Authority display adult diapers in Manila. ore than 5mn barefoot devotees paraded a centuries-old icon of Jesus Christ through Manila yesterday in a loud, heaving paroxysm of religious fervour ahead of Pope Francis’ visit to Asia’s bastion of Christianity. In fervent displays of devotion, huge crowds of men, women and children chanted “Viva!” (Long live!) and twirled white handkerchiefs at the Black Nazarene, with some hurling themselves at the supposedly miraculous statue for good luck. “The Lord is my healer,” Lina Javal, 58, declared after waiting in line for hours to kiss the lifesized ebony statue, showing an AFP reporter the healed incision from throat surgery she underwent last month. “It’s an extraordinary feeling, it’s like the Holy Spirit is entering my body,” said the clerk from nearby Laguna province. The mammoth procession, estimated by the Philippine Red Cross at 5.5mn people, crawled at a near-snail’s pace along Manila’s old quarter as devotees risked life and limb for the privilege of pulling the fat rope that moved the float forward. City officials and the Philippine Red Cross said a man died from heart attack and more than 600 others were treated for various injuries as the crowd wriggled past trash-strewn streets in light rain and overcast skies. The procession is expected to last well into the night. “I pray that the Nazarene continues watching over my grandson, that he is kept healthy,” said Manila laundrywoman Imelda Santiago, 62. She carried the two-year-old Agriculture dept chief told to quit over garlic price issue By Llanesca T Panti & Jefferson Antiporda Manila Times A griculture Secretary Proceso Alcala should resign from his post for failing to stop a “cartel” from manipulating garlic prices last year. Party-list congressmen Walden Bello and Antonio Tinio made the call yesterday, a day after graft charges were п¬Ѓled against 119 individuals, including Clarito Barron, a former head of the Bureau of Plant Industry (BPI), and alleged garlic cartel queen Lilia Cruz, for conniving to enable Cruz to corner garlic import permits. Senator Sergio OsmeГ±a, however, would settle for Alcala’s suspension until investigation of his role in the alleged price manipulation was completed. The manipulation of garlic prices could not have happened without the knowledge of the officials of the Department of Agriculture (DA), including Alcala, and so he has to be suspended, according to Osmena. His statements came a day after the National Bureau of Investigation (NBI) п¬Ѓled a criminal complaint against 119 government officials (including Barron), importers and several leaders of farmers’ co-operatives reportedly involved in the alleged manipulation of garlic prices last year. The NBI said the supposed collusion between officials of BPI, which is under the DA, and the importers and the co-operatives led to the sudden spike in the prices of garlic in the local market in 2014. Majority of the import permits issued by the bureau last year was said to have been cornered by Cruz, a businesswoman who established the Vegetable Importers, Exporters and Vendors Association of the Philippines (Vieva Philippines). The NBI, however, saw no need to include Alcala in the criminal complaint, saying there was no sufficient evidence that would link the DA secretary to the controversy. But OsmeГ±a said it is unlikely that Alcala is unaware of what his men are up to or has no information about the supposed collusion between the agriculture department officials and the importers.“In fact, as the head of the DA, he can immediately put a stop to it if he wanted to, so I believe that it (garlic price manipulation) has the secretary’s blessing,” he added. “I think he (Alcala) should be suspended, at least while investigation is going on. But that’s up to the ombudsman,” Osmena said. Meanwhile, he suggested that the government do away with “import permits” since their issuance is not sanctioned by law. Since 1997 when Congress passed the Tariffication Act in 1997, the government has not restricted importation of garlic, onions and eight other agricultural products and just imposed import taxes instead. Tariffication refers to replacement of quantitative restrictions on imports with their estimated tariff equivalent. By 1999, however, according to Osmena, he learned about import permits being required of importers, with the government citing phytosanitary measures issued by the Plant Quarantine Service (PQS) of the BPI. All imported commodities are subject to PQS’ veriп¬Ѓcation, inspection and examination in the laboratory. The agency can also place imported products under quarantine or destroy them if needed.The charge sheet accuses Barron of receiving P240,000 cash as bribe, in exchange for issuing four import permits worth P60,000 each. Others charged were Merle Bautista Palacpac, officer in charge of Plant Quarantine Service and Luben Quijano Marasigan, former PQS chief and now quarantine officer assigned at North Harbour, Manila. Justice Secretary Leila de Lima earlier said the probe of Alcala’s alleged involvement in the garlic cartel is yet to be determined. Caloocan City (Metro Manila) representative Edgar Erice, a party-mate of Alcala in the ruling Liberal Party headed by President Benigno Aquino, backed de Lima’s stance. “It is still a work in progress and we have to understand that the (justice department) is strategising for a solid prosecutorial position,” Erice told Manila Times in a text message. boy, who is blind in his right eye, to the parade, shielding him from the rain with a blanket. Many Filipinos believe the statue holds miraculous healing powers and make lifetime vows to join the annual parade, often wearing T-shirts emblazoned with an image of Christ crowned in thorns. “The brand of religious devotion that we see in Filipino Catholicism is based on a very strong desire of the majority of our people for a more immediate and direct access to divine help or power,” said Manuel Victor Sapitula, a sociology professor at the University of the Philippines. “That is why it is sought through physical touch, sound, bodily experience, or any combination of these,” he added. The Philippines is also host to some other forms of extreme piety, including ritual cruciп¬Ѓxion of more than a dozen devotees at a farming village north of Manila each Good Friday, when male penitents wearing black masks and crowns of thorns also whip their backs bloody with strips of bamboo. Isko Moreno, the vice mayor of Manila city, told ABSCBN television that about a million people took part at the start of the procession, and many more waited to join it along a circuitous route. Eight in 10 of the Philippines’ 100mn people are Catholics, and the Black Nazarene festival is a display of the vibrance of the religion ahead of the papal visit which begins on January 15. During his January 15-19 trip, Pope Francis will comfort victims of deadly Super Typhoon Haiyan in central Leyte island, and celebrate mass for millions in the capital’s largest outdoor park. First brought to Manila by Augustinian priests from Mexico in 1607, decades after the archipelago was colonised by Spain, the Nazarene statue is believed to have acquired its colour after it was partially burnt when the galleon carrying it caught п¬Ѓre. Construction worker Angelo Pamarca, 30, walked an hour to join the procession with his sixyear-old daughter perched on his shoulders. “I ask the Black Nazarene to forgive my many sins and give me strength to resist temptation,” Pamarca said with a mischievous grin, declining to elaborate. Aileen Amandy, 48, joined the parade with her teenage daughter to seek divine intervention in helping her children complete their studies. “He always grants my prayers,” Amandy said, crediting the Black Nazarene with healing a son suffering from high fever and convulsions, and keeping another son, a policeman, safe from harm. Philippines to buy two C-130 transport planes from US Navy Reuters Manila T he Philippine military yesterday signed a pact with the US Navy to buy two secondhand C-130 transport planes to boost its capability to fan out quickly for territorial defence and humanitarian operations. Washington has been helping develop the military capability of its former colony in the face of serious security challenges in the South China Sea, as China steps up its presence in disputed areas. China claims almost all of the sea, believed to be rich in mineral and oil-and-gas deposits. Brunei, Malaysia, Vietnam, Taiwan and the Philippines also have claims on the waters, traversed by about $5tn of shipborne trade each year. “The US is helping us pay for these two aircraft,” Colonel Restituto Padilla, a spokesman for the Armed Forces of the Philippines, said, adding that the US State Department would provide about $20mn in foreign military financing. “We have requested some 1.6bn pesos to complete the purchase of the transport planes,” he added, referring to a sum equivalent to $35.61mn. The transport planes, to be delivered early next year, will take to five the number of mission-ready C-130s, for a boost in the number and capacity of existing medium-lift aircraft. In 2014, Washington allocated military assistance funds of $50mn to the Philippines. Besides the C-130s, the funds were used to install weapons on two frigates, also acquired from the US coast guard. Padilla said the transport planes would be used to rapidly deploy troops in the fight against Maoist-led rebels and others and to carry relief to disaster-hit areas. Taxi drivers to display new IDs from Jan 16 Manila Times Manila B y next week, taxi drivers are required to display their new tamper-proof IDs on their vehicles, the Land Transportation Franchising and Regulatory Board (LTFRB) said yesterday. To recall, LTFRB last November, said that it will soon be issuing these new IDs to provide passen- gers with a quick way for them to identify their names and if necessary, report to authority in case they refuse service. At the same time, it will also be easier for the board to determine taxi drivers possibly involved in criminal activities. The IDs will require the driver’s name and picture and company name, while a barcode will bear the driver’s track record. LTFRB said that this can be accessed via smartphone. They will be out by Jan 15 and will be required to be displayed on Jan 16. Gulf Times Saturday, January 10, 2015 17 SRI LANKA/BANGLADESH Sirisena sworn in as Lanka’s new president AFP Colombo M aithripala Sirisena was sworn in as Sri Lankan president yesterday after a shock victory over veteran strongman Mahinda Rajapakse in an election dominated by charges of corruption and growing authoritarianism. Sirisena took the oath of office hours after Rajapakse conceded defeat, saying he accepted the decision of Sri Lankans who turned out in force on Thursday to vote him out after 10 years in office. Sirisena said Sri Lanka would mend its ties with the international community, in a clear reference to Rajapakse’s falling out with the West over allegations of wartime rights abuses by the military. “We will have a foreign policy that will mend our ties with the international community and all international organisations in order that we derive maximum beneп¬Ѓt for our people,” he said. Celebratory п¬Ѓrecrackers could be heard in Colombo as Sirisena was sworn in on the capital’s Independence Square along with new Prime Minister Ranil Wickremesinghe. “People want a new political culture. I don’t want anyone taking the law into their own hands,” said Wickremesinghe, the head of the opposition United National Party (UNP), at an earlier press conference. Sirisena, a former health minister who united a fractured opposition to pull off an unlikely victory, thanked Rajapakse for a “fair election that allowed me to be the president”. Pope visit on despite Rajapakse defeat AFP Colombo T he Catholic church yesterday reiterated that Pope Francis will go ahead with his visit to Sri Lanka next week despite the change of government in Colombo following a snap election. Colombo-based Cardinal Malcolm Ranjith appealed for “peace and order” after Mahinda Rajapakse was defeated by his former health minister and opposition candidate Maithripala Sirisena. “We earnestly appeal to all Sri Lankans to help make this visit of the Holy Father (from January 13-15) a success by maintaining peace and order at this moment when a new president has been elected,” the church said in a statement. It said the incoming president, who is also a Buddhist like his predecessor, had promised Cardinal Ranjith “to give his fullest co-operation for the success of this papal visit”. There had been concerns that a messy outcome to the election might have thrown the papal visit into doubt but Rajapakse conceded defeat on Friday in a move that was welcomed by Sirisena. Roman Catholics account for around 6% of the population in Buddhist-majority Sri Lanka. He was elected with a 51.28% share of the vote to the former leader’s 47.58%. It was a remarkable reverse for a leader who had appeared certain of victory when he called snap polls in November. Thilanga Sumathipala, a lawmaker with Rajapakse’s Sri Lanka Freedom Party, said the outgoing president had a “very emotional” meeting with ministers as he bowed out yesterday. US Secretary of State John Kerry welcomed Rajapakse’s early concession and said he looked forward to working with the new leader. Sirisena has promised sweeping reforms of the presidency and said he will transfer many of its executive powers to parliament. He was elected on a tide of resentment against Rajapakse, who rewrote the constitution after his re-election in 2010 to remove the two-term limit on the presidency and give himself more powers over public servants and judges. During the campaign, Sirisena said that he had warned Rajapakse to change his ways or risk new unrest in the country. “He was leading the country down a dangerous road to destruction,” he had said, promising a “constitutional revolution” if elected. Rajapakse enjoyed huge support among majority Sinhalese voters after overseeing the end of a separatist war by ethnic Tamil rebels in 2009. But critics say he failed to bring about reconciliation in the years that followed his crushing victory over the Tamil Tiger guerrillas. He is also accused of under- Sri Lanka’s newly-elected president Maithripala Sirisena, centre, taking oath as he was sworn in at Independence Square in Colombo yesterday. Newly elected Prime Minister Ranil Wickramasinghe at the election commissioner’s office in Colombo yesterday. mining the independence of the judiciary and has packed the government with relatives, sparking resentment even within his own party. Rajapakse fell out with the West over allegations his troops killed 40,000 Tamil civilians at the end of the civil war, and refused to cooperate with a UN-mandated investigation. He cultivated close links with China, which has invested heavily in Sri Lanka, seeking to counter rival regional power India’s influence. Beijing yesterday downplayed suggestions the new leadership could impact its projects in Sri Lanka. The opposition has promised to address international concerns over war crimes and normalise relations with Western nations and India, whose Prime Minister Narendra Modi Supporters of Sri Lanka’s newly elected president Maithripala Sirisena gathered to celebrate as he was sworn in at Independence Square in Colombo yesterday. congratulated Sirisena. Sirisena’s decision to run triggered a slew of defections and became a rallying point for disaffection with Rajapakse and his powerful family. His vision for the country ties in closely with the free-market policies of the centre-right UNP which provided him with the political base to contest the election. But analysts say he faces a challenge to unite the rainbow coalition of parties from rightwingers to Marxists that helped him secure victory. The vote passed off largely peacefully, although there were some reports of intimidation in Tamil areas. The president had come under international pressure, with Washington urging him to ensure peaceful and credible polls. The election came days before a visit to the island by Pope Francis which some Catholic leaders had said should be cancelled in the event of violence. Election monitors said large numbers of people had voted in the Tamil-dominated former war zones of the north and east, which are heavily militarised. Tamils are Sri Lanka’s largest minority, accounting for 13% of the population and helped bring down Rajapakse by supporting his rival. “We voted to get our dignity back,” said a Tamil journalist who asked not to be named. “We may have good roads and a new railway line, but what we want is to live in peace.” Tamils celebrate toppling вЂ�known devil’ AFP Colombo S ri Lanka’s Tamils yesterday celebrated their key role in ousting Mahinda Rajapakse, whose 11th-hour charm offensive and exhortation to vote for “the known devil” was too little, too late. Rajapakse was strongly resented among Tamils in Sri Lanka after ordering a brutal military suppression of a separatist insurgency in which thousands of civilians are said to have died. With the majority Sinhalese vote split between the president and his successful challenger Maithripala Sirisena, Sri Lanka’s largest minority group emerged as kingmakers in the polls. “We were the deciding factor at this election,” said school teacher Kanchana Keethiswaran in the northern Jaffna peninsula, scene of the worst of the violence in the decades-long conflict. “We hope the new president does not forget that he won only because of our (Tamil) votes.” Rajapakse had travelled to Jaffna last week for a campaign rally, as the extent of support for the opposition among majority Sinhalese became clear. During a campaign rally he told residents that Sirisena was a stranger to the region, while he had travelled there at least 11 times after п¬Ѓrst becoming president in 2005. “The devil you know is better than the unknown angel,” he said in Sinhala, speaking through a translator. “I am the known devil, so please vote for me.” The somewhat mangled metaphor appears to have rung true for many Tamils, who came out in unusually large numbers to vote for Sirisena despite some reports of intimidation. More than a million Tamils endorsed Sirisena, who took a 51.28% share of the vote nationwide to secure the presidency. The main Tamil party, the Tamil National Alliance (TNA), backed Sirisena’s candidacy and said it was grateful to its supporters for electing their choice for the top job. But it made clear it expected him to address the issue of greater autonomy for Tamil areas of the country — something that may prove a challenge given that his diverse support base includes Sinhalese nationalists. “The new president Sirisena has to address urgently many grave issues the country faces, including an honourable resolution of the national question,” the TNA said, in a reference to Tamil autonomy. The Tamil Tigers ran Jaffna as a de facto state for nearly п¬Ѓve years until they were dislodged in 1995 and the area has been heavily militarised since the war ended in 2009. Tamils in the arid peninsula strongly oppose the large military presence in the region, which they see as an occupation. International rights groups have also asked Colombo to withdraw its troops, a demand rejected by the government. Retired Tamil civil servant S Sebanayagam, 73, said Tamils had voted for “change” — the campaign slogan of Sirisena, who has promised to investigate war time rights abuses, a highly emotive issue. Rajapakse refused to acknowledge that his troops killed any civilians while defeating Tamil rebels in a bloody offensive in May 2009. In all, around 100,000 people were killed in the conflict between 1972 and 2009. Rajapakse had spent billions of dollars to rebuild infrastructure in the former war zones, but failed to win popular support. “We voted to get our dignity back,” said a Tamil journalist who asked not to be named. “We may have good roads and a new railway line, but what we want is to live in peace.” Paris massacre condemned at Bangladesh gathering AFP Dhaka M uslims attending one of the world’s largest religious gatherings joined the chorus of condemnation yesterday over the deadly attack on a French satirical weekly, saying the killings ran contrary to the tenets of Islam. Bangladesh’s Biswa Ijtema, or World Muslim Congregation, is the world’s second largest Islamic gathering after the Haj with devotees coming from all over the globe to pray and hear imams preach for three days. Canopies stretching for more than a kilometre, erected on open ground on the banks of the Turag river, were already packed with tens of thousands of worshippers even before the official start yesterday. While politics is assiduously avoided at the gathering, the killings of 12 people in an Islamist attack on the magazine Charlie Hebdo in Paris weighed on the minds of many of those attending. “Islam does not support killings. Even during the time of the Prophet, non-believers would satirise him and Islam, but he tolerated them and forgave them,” said Mohammad Faiyaz, a senior Islamic scholar at the congregation. Faiyaz said the “mindless and abominable killings” of journalists and police had tarnished the religion’s image and made the work of preachers such as himself that much more difficult. “These attackers simply don’t know what Islam is all about,” he said. Mohammad Zakaria, who is a cleric at a mosque in Dhaka, said he was “deeply saddened” at the death of the journalists, slamming the “terrorists” behind Wednesday’s massacre. Charlie Hebdo has a history of publishing cartoons mocking all religions, including Islam, and had been previously been п¬Ѓrebombed after running caricatures of the Prophet Mohammed. Muslims attending the Friday prayer in the streets close to the congregation ground during the first day of the three-day long Muslim Congregation at Tongi, near Dhaka, yesterday. The gunmen were heard crying “we have avenged the Prophet” and “Allahu akbar” (God is greatest) after carrying out their killing spree. But Zakaria said the idea that the Prophet’s honour needed avenging by masked gunmen was absurd. “Almighty Allah alone is enough to protect Islam. History proves that Allah protected Islam by sending Ababil birds to beat those attackers who wanted to destroy the Holy Kaaba,” he said, referring to a sacred site in the holy city of Mecca. Launched by Tablig Jamaat, a non-political group that urges people to follow the tenets of Is- lam in their daily lives, the gathering at Tongi was п¬Ѓrst held in 1964 and now draws around 3mn people each January. Most of those who attend are from rural areas of Bangladesh although the event also draws tens of thousands from Muslim countries in North Africa, Central Asia and even China. 18 Gulf Times Saturday, January 10, 2015 COMMENT Chairman: Abdullah bin Khalifa al-Attiyah Editor-in-Chief : Darwish S Ahmed Production Editor: C P Ravindran P.O.Box 2888 Doha, Qatar [email protected] Telephone 44350478 (news), 44466404 (sport), 44466636 (home delivery) Fax 44350474 GULF TIMES An opportunity for reconciliation in Sri Lanka By giving a mandate to opposition candidate Maithripala Sirisena, Sri Lanka’s people have voted to scrap the kind of presidency that has allowed п¬Ѓgures like the ousted Mahinda Rajapakse to dominate the country’s politics for years. Abolishing the country’s 37-year-old executive presidential system was a centrepiece of Sirisena’s campaign. He argued that Rajapakse was assuming the power of a dictator after already serving two terms. He has a good opportunity now to capitalise on the consensus he has garnered during the campaign, and push changes through. Observers expect Sirisena to start by abolishing the executive powers and making the parliament more powerful. Whether or he goes on to reform the constitution, Sirisena’s election itself has already been cited as a considerable achievement and a possible indication of improved unity. He gained the support of a range of minority groups, and his success has sparked new hope of reconciling a nation long divided on ethnic lines. Sirisena drew some support from the majority Sinhala community in the southern part of the country, but his overall majority was boosted by minority votes. A political party formerly allied with the Tamil rebels came out in his favour, helping him win in the north and east. He was also the favourite in predominantly Muslim areas. Rajapakse by contrast played almost entirely to the majority Sinhala community, which accounts for 75% of the country’s 20mn population. He campaigned largely on his victory in the war against Tamil rebels of the Liberation Tigers of Tamil Eelam (LTTE) in 2009. His supporters carried pictures of victims of the conflict in attacks carried out by the LTTE. Even before the campaign, п¬Ѓlms and clips of government troops п¬Ѓghting the rebels were regularly shown on state-run television. But it seems many people believe that Sri Lanka should move on after the defeat of the LTTE. Rajapakse’s support from minorities also suffered after his government supported a radical Buddhist group widely believed to be backed by the outgoing president’s brother, Defence Minister Gotabhaya Rajapakse. The Bodu Bala Sena (Buddhist forces) allegedly encouraged attacks on Muslims in a town south of the capital last year and were also reportedly involved in attacks on Christian prayer groups. Gotabhaya Rajapakse, along with other members of the Rajapaksa family in prominent positions, is likely to be replaced in the new administration. Beyond non-speciп¬Ѓc campaign rhetoric, Sirisena has offered no concrete solution to the problems of the minority Tamils, nor has he said how he plans to address the calls for an international human rights investigation that dogged his predecessor. The West must play key role in reforming Ukrainian society Despite п¬Ѓnancial difficulties in the EU and the US, support for Ukraine’s efforts at reform and modernsation is crucial By Bogdan Klich Warsaw T he accumulation of conflicts and crises in Eastern Europe and the Middle East poses new challenges for Nato and the European Union. If these challenges are to be met, both institutions – bastions of Western values and security – will have to clarify their objectives and adjust the way they operate. Should they fail to do so, the West’s two greatest political achievements of the postwar era may begin to unravel. That Nato and the EU may lack the will to change is indicated by the fact that, even after Russian troops invaded Crimea and eastern Ukraine’s Donbas region, only part of the West was ready to admit that President Vladimir Putin was intent on restoring Russia as an aggressive global power. It took others months to accept the reality that Putin’s willingness to use force to change national borders in Europe could not go unchallenged. Of course, there still has been no direct Russian attack on a Nato member state. But the state of turmoil just beyond the Alliance’s eastern border has created a reasonable fear in Nato’s Baltic member countries, as well as in Romania and Poland, about whether or not the Alliance would actually stand with them should they be threatened. Putin’s revanchism is an attempt to undermine the entire model of international security – one based on co-operation and dialogue, not military force – that has prevailed since the end of the Cold War, and has long been the animating vision behind European uniп¬Ѓcation. His aggression has dispelled whatever doubts had existed as to whether the transatlantic bond still mattered. In the long term, the best course of action will be to reduce European dependence on Russian energy The question now is whether the West retains the will, and the means, to chart a path through a crisis on its very doorstep. When the п¬Ѓrst wave of Central European countries joined Nato in 1999, both the Russian Federation and Ukraine accepted their admission. Both were offered “special partnerships”, and dedicated channels of communication – most notably the Nato-Russia Council and the Nato-Ukraine Commission – were established to create trust and dispel fears that Nato posed a threat to its eastern neighbours. Putin’s actions demonstrate that Russia does not accept that Nato is a defensive alliance that poses no threat to Russian security. His desire for a sphere of influence that limits Western influence in countries bordering Russia – above all, Ukraine – has revealed that efforts to build trust with the Kremlin have been for naught. Given the gravity of the situation, it seems foolhardy to continue to grant Russia the privileged partnership with Nato that it has enjoyed since the late 1990s. Yes, the Nato-Russia Council – a useful infrastructure of communication in times of tension – should be maintained. But there should no longer be any pretense of partnership with Russia. Moreover, new policies for protecting Nato’s partners in Eastern Europe, Central Asia, and the South Caucasus are badly needed. The West must convince the Kremlin to roll back its intervention in Ukraine, and make it clear that further use of military force will be met with countermeasures that are more severe than the sanctions imposed thus far. In the long term, the best course of action will be to reduce European dependence on Russian energy. New liqueп¬Ѓed natural gas terminals in Europe and legislative changes in the United States to enable the export of America’s burgeoning energy supplies will demonstrate to Russia that its window of energy-based leverage is closing. In the short term, Nato and the EU must show the Ukrainians that they are not alone. They must maintain pressure on the Kremlin to reverse its intervention and abide by the Minsk Protocol, ratcheting up sanctions should Russia fail to live up to its word. Despite a nominally binding ceaseп¬Ѓre, the situation remains uncertain and subject to rapid escalation, especially in light of Russia’s new military incursions in Donbas. Only п¬Ѓrmness will convince the Russian elite that Putin’s strategy of confrontation is a dead end for their country. The West must also avoid any temporary solution that could lead to the unintended breakup of Ukraine. Should current sanctions fail to do the job, Europe and the US should widen them to include the oil and gas sector, which is the engine (and soft underbelly) of the Russian economy. The West can no longer afford the inconsistency that it has displayed until now, with EU countries pursuing policies that reflect their differing national interests. It is past time for all EU and Nato members to recognize their obligation of solidarity in the face of the Russian threat. But it is the West’s long-term commitment that will have the greatest impact on the Kremlin. The West must become actively engaged in reforming Ukrainian society, including the country’s armed forces. Despite п¬Ѓnancial difficulties in the EU and the US, support for Ukraine’s efforts at reform and modernsation is crucial. It will take п¬Ѓrm support and generous assistance to give Ukraine the chance to repel Russian aggression and join the community of democratic, liberal and prosperous countries.Project Syndicate zBogdan Klich, a member of the Polish Senate, was Poland’s defence minister from 2007 to 2011 and a member of the European Parliament from 2004 to 2007. Sirisena’s success has sparked new hope of reconciling a nation long divided on ethnic lines To Advertise [email protected] Display Telephone 44466621 Fax 44418811 Classified Telephone 44466609 Fax 44418811 Subscription [email protected] 2014 Gulf Times. All rights reserved President Putin: his actions demonstrate that Russia does not accept that Nato is a defensive alliance that poses no threat to Russian security. Welcome to smart homes By Glenn Chapman Las Vegas/AFP F rom door bells that scrutinise visitors to washing machines that know when you’re home and lights that click off when you get in bed, houses are getting smarter. The trend of once-dumb п¬Ѓxtures and appliances being given the brains to respond to, or even anticipate people’s needs was on display at the Consumer Electronics Show that ended in Las Vegas yesterday. US home improvement shop chain Lowe’s built a mock house on the cavernous show floor to demonstrate Iris, a globe-shaped device that acts as a hub for using smartphones to control lights, thermostats, outlets and more. CES was rife with Internet-linked smart light bulbs, door locks, wall outlets for smart homes. Hubs used as command centres for gadgets in homes plug into the Internet and then connect with compatible п¬Ѓxtures, locks, security cameras, appliances or other objects wirelessly using new technologies such as ZigBee or Z-Wave. Internet connections let hubs exchange information, alerts or messages with applications in smartphones or tablet computers. The system in the Lowe’s smart house could alert parents to the arrival home of their children, thanks to a signal from a special fob attached to their key rings. Window blinds could be opened or closed on commands, and a sensor affixed to a dog’s collar signaled a doggy door to unlock when a pet neared. “You don’t need many remote controllers; all you need is this ring” Smart home systems can also synch to surveillance cameras and motion detectors, allowing people to monitor their homes without costly service contracts with security companies. The demo home also featured a box that connected to the water line and sends a message to the home owner if change in flow indicates a leak or burst pipe. “And everything we have is do-ityourself,” a Lowe’s spokesperson said while guiding AFP through the mock home. German home appliance titan Bosch showed off its connected home system that uses sensors and cameras for its creations to communicate with one another, even letting people virtually glimpse into refrigerators while shopping to see what they might need. Logbar, which has offices in Japan and Silicon Valley, was catching attention with a Bluetooth-enabled ring that, when worn, allowed people to control smartphones using gestures. Logbar is planning to release a Ring Hub disk that will synch with the rings to allow infra-red enabled televisions, lights, appliances and other things in homes to be controlled with gesture. “You don’t need many remote controllers; all you need is this ring,” Momoko Matsuzaki of Logbar told AFP. “Then, when you leave your house you can also control your phone with it.” South Korean consumer electronics giant Samsung used CES to announce that not only is it working toward making nearly all of its devices “connected” but that it is opening the platform to software developers and hardware makers. Allowing rival home devices to “speak” to each other through a common hub promises to ramp adoption faster than forcing consumers to pick between systems that work only with one company’s products. Forrester analyst Frank Gillett referred to the various hubs and systems for connected homes as being in a “fragmented battle.” Google is pushing into the market through smart-thermostat maker Nest, which it bought a year ago in a deal valued at $3.2bn. A growing list of household things or services that work with Nest was unveiled at CES. Among them were a car-charging station that lets users know when energy prices are high and a washer and dryer that switch to quieter modes when people are home. There was also a smart door lock that starts warming or cooling the house when someone arrives home and sets the thermostat to an away mode to save energy when someone locks up on the way out. “Things that magically happen around your house aren’t just sci-п¬Ѓ anymore,” Nest co-founder and head of engineering Matt Rogers said in a blog post. Gulf Times Saturday, January 10, 2015 19 COMMENT When macroeconomic diagnosis goes wrong There is nothing progressive about large budget deп¬Ѓcits and a rising debt-to-GDP ratio one of his New York Times commentaries in the first half of 2013, when “austerian” deficit cutting was taking effect, forecast a major reduction in unemployment or that economic growth would recover to brisk rates. On the contrary, “the disastrous turn toward austerity has destroyed millions of jobs and ruined many lives”, he argued, with the US Congress exposing Americans to “the imminent threat of severe economic damage from short-term spending cuts”. As a result, “full recovery still looks a very long way off ”, he warned. “And I’m beginning to worry that it may never happen”. I raise all of this because Krugman took a victory lap in his end-of-2014 column on The Obama Recovery. The recovery, according to Krugman, has come not despite the austerity he railed against for years, but because we “seem to have stopped tightening the screws: Public spending isn’t surging, but at least it has stopped falling. And the economy is doing much better as a result”. That is an incredible claim. The budget deп¬Ѓcit has been brought down sharply, and unemployment has declined. Yet Krugman now says that everything has turned out just as he predicted. In fact, Krugman has been conflating two distinct ideas as if both were components of “progressive” thinking. On one hand, he has been the “conscience of a liberal”, rightly focusing on how government can combat poverty, poor health, environmental degradation, rising inequality, and other social ills. I admire that side of Krugman’s writing, and, as I wrote in my book The Price of Civilisation, I agree with him. On the other hand, Krugman has inexplicably taken up the mantle of crude aggregate-demand management, making it seem that favoring large budget deп¬Ѓcits in recent years is also part of progressive economics. (Krugman’s position is sometimes called Keynesianism, but John Maynard Keynes knew much better than Krugman that we should not depend on mechanistic “demand multipliers” to set the unemployment rate.) Deп¬Ѓcits were not increased enough in 2009 to escape from high unemployment, he By Jeffrey D Sachs New York F or several years, and often several times a month, the Nobel laureate economist and New York Times columnist and blogger Paul Krugman has delivered one main message to his loyal readers: deп¬Ѓcitcutting “austerians” (as he calls advocates of п¬Ѓscal austerity) are deluded. Fiscal retrenchment amid weak private demand would lead to chronically high unemployment. Indeed, deп¬Ѓcit cuts would court a reprise of 1937, when Franklin D Roosevelt prematurely reduced the New Deal stimulus and thereby threw the United States back into recession. Well, Congress and the White House did indeed play the austerian card from mid-2011 onward. The federal budget deп¬Ѓcit has declined from 8.4% of GDP in 2011 to a predicted 2.9% of GDP for all of 2014. And, according to the International Monetary Fund, the structural deп¬Ѓcit (sometimes called the “full-employment deп¬Ѓcit”), a measure of п¬Ѓscal stimulus, has fallen from 7.8% of potential GDP to 4% of potential GDP from 2011 to 2014. Krugman has vigorously protested that deп¬Ѓcit reduction has prolonged and even intensiп¬Ѓed what he repeatedly calls a “depression” (or sometimes a “low-grade depression”). Only fools like the United Kingdom’s leaders (who reminded him of the Three Stooges) could believe otherwise. Yet, rather than a new recession, or an ongoing depression, the US unemployment rate has fallen from 8.6% in November 2011 to 5.8% in November 2014. Real economic growth in 2011 stood at 1.6%, and the IMF expects it to be 2.2% for 2014 as a whole. GDP in the third quarter of 2014 grew at a vigorous 5% annual rate, suggesting that aggregate growth for all of 2015 will be above 3%. So much for Krugman’s predictions. Not insisted, and were falling dangerously fast after 2010. Obviously, recent trends – a signiп¬Ѓcant decline in the unemployment rate and a reasonably high and accelerating rate of economic growth – cast doubt on Krugman’s macroeconomic diagnosis (though not on his progressive politics). And the same trends have been apparent in the United Kingdom, where Prime Minister David Cameron’s government has cut the structural budget deп¬Ѓcit from 8.4% of potential GDP in 2010 to 4.1% in 2014, while the unemployment rate has fallen from 7.9% when Cameron took office to 6%, according to the most recent data for the fall of 2014. To be clear, I believe that we do need more government spending as a share of GDP – for education, infrastructure, low-carbon energy, research and development, and family beneп¬Ѓts for low-income families. But we should pay for this through higher taxes on high incomes and high net worth, a carbon tax and future tolls collected on new infrastructure. We need the liberal conscience, but without the chronic budget deп¬Ѓcits. There is nothing progressive about large budget deп¬Ѓcits and a rising debt-to-GDP ratio. After all, large deп¬Ѓcits have no reliable effect on reducing unemployment, and deп¬Ѓcit reduction can be consistent with falling unemployment. Krugman is a great economic theorist – and a great polemicist. But he should replace his polemical hat with his analytical one and reflect more deeply on recent experience: deficit-cutting accompanied by recovery, job creation and lower unemployment. This should be an occasion for him to rethink his long-standing macroeconomic mantra, rather than claiming vindication for ideas that recent trends seem to contradict. - Project Syndicate zJeffrey D Sachs is professor of sustainable development, professor of health policy and management, and director of the Earth Institute at Columbia University. He is also special adviser to the United Nations secretary-general on the Millennium Development Goals. Weather report LEGAL HELPLINE Three-day forecast Validity of an admission The admission shall be taken as a whole but the admission may be divisible if it was focused on multiple independent facts By Nizar Kochery Doha QUESTION: In a case before the Qatar civil court, a party has submitted in writing that I have admitted a claim to one of our colleagues but there is no written proof for that. He claims that this as my acceptance. What is confession as per laws? AW, Doha ANSWER: Acceptance of non-judicial admission shall be at the discretion of the judge and shall be proved in accordance with the general rules of evidence. The non-judicial admissions are admissions which are made by the party elsewhere than before the judicial authority or that takes place before the judicial authority in other than the action brought upon the admitted fact. According to Article 302 of the procedural laws, the judicial admission is the acknowledgment by the litigant or his representative, especially before the judicial authority while proceeding the legal action against him. The validity of the admission stipulates that the confessor shall be a person competent to contract and shall be a conclusive argument against the confessor but limited to him. The admission shall be taken as a whole but the admission may be divisible if it was focused on multiple independent facts. In general admission shall not be divisible upon the confessor in a way to exclude what is favourable for him and keep the unfavourable. Agreement on clearing dues Q: I am a shareholder in a company but not active in its management. There is an agreement wherein it is stated that I will clear the other partner’s dues. Will I be liable for this? The party holding the agreement has п¬Ѓled a case against me to recover the amount speciп¬Ѓed to be paid by me. RT, Doha A: Under Article 177 of Qatar Civil Code, a contract shall not create any obligations binding upon third parties but may grant rights in such third parties’ favour. A person who binds himself to procure the performance of an obligation by a third party, does not in so doing bind the third party. In the event if the third party refuses to perform the obligation, the person who bound himself to obtain such performance, will be liable to indemnify the other contracting party by himself performing the obligation, the performance of which he undertook to procure. If the third party consent to perform the obligation, he shall assume such obligation while the person giving the undertaking is discharged therefrom but the former’s consent is effective only from the time that it is given, unless it is indicated expressly or by implication that the consent is retroactive as from the date of the agreement between the contracting parties. Maternity leave for women staff Q: I am a woman working with a limited liability company (the branch of a UAE company) in Doha for the last three years. I am expecting and looking to avail of maternity leave and other beneп¬Ѓts. My company grants only 35 days in maternity leave as per its practice in the UAE. Please advice what Law will be applicable to me when I work in Doha with a UAE-based company? Will there be any relaxations to it as it is a branch of a UAE-based company? SE, Doha A: Qatar Labour Law – No14 of 2004 will be applicable for all workers/ employees in Qatar with exceptions provided under Article 3 of the Law as amended. The Law provides that female employees who have been employed for one year by the same employer are entitled to 50 days paid maternity leave on full salary. The leave must be taken in the period immediately before and after delivery provided that the leave must include 35 days in the post-delivery period. A medical certiп¬Ѓcate issued by a licensed physician stating the probable delivery date to be submitted. If the post-delivery health of the employee hinders return to work after the end of her maternity leave period then, provided that an adequate medical certiп¬Ѓcate is furnished, an employee may take unpaid leave for a period not exceeding 60 consecutive or staggered days. In addition to the leave beneп¬Ѓts, a female employee who is breastfeeding her child is entitled to a one hour nursing break determined by her, per day, for one year following delivery of the child. TODAY High: 23 C Low: 15 C Partly cloudy with chance of scattered rain at places becoming slight dust to dusty and cold by evening The law prohibits employer from terminating employment of the female employee’s due to her taking of maternity leave. Also, the employer may not issue notice of termination of employment contract during the maternity leave period or give the employee a notice period that expires during this period. SUNDAY High: 21 C Low : 15 C M Cloudy MONDAY High: 21 CC Low : 14 C P Cloudy Breach of contract Q: My employment contract provides free housing and transportation. The company has now stopped those allowances. Because of it, I am not interested to continue working with the company. Can I terminate my contract? Do I need to give notice? ED, Doha A: Article 51 of the Labour Law permits an employee to terminate his employment contract with immediate effect if his employer has breached the terms of the employee’s employment. Such termination can be with or without written notice being served. Fishermen’s forecast OFFSHORE DOHA Wind: NW-SE 18-25/KT Waves: 2-4/5 & 6-8/ Feet INSHORE DOHA Wind: NW-SE 13-20/28 KT Waves: 1-2/3 & 2-4/5 Feet Around the region Abu Dhabi Baghdad Dubai Kuwait City Manama Muscat Riyadh Tehran Weather today Clear Cloudy Clear Clear Clear Clear P Cloudy Clear Max/min 23/15 12/03 23/15 17/07 19/06 29/19 16/10 06/-1 Weather tomorrow Clear C Showers Clear P Cloudy P Cloudy Clear P Cloudy M Cloudy Max/min 24/16 08/01 26/17 14/02 20/12 29/19 18/04 06/-3 Weather tomorrow P Cloudy P Cloudy C Showers C Rain P Cloudy P Cloudy P Cloudy Clear Clear Rain C Storms Clear C Rain P Cloudy Cloudy Clear Clear C Rain Clear Clear T Storms M Cloudy Clear Max/min 16/08 11/09 30/23 12/03 14/09 27/18 29/23 23/13 19/13 07/06 31/26 28/14 13/03 27/20 -1/-5 19/08 -6/-8 13/06 33/22 04/-2 31/24 34/21 10/01 zPlease send your questions by e-mail to : [email protected] LEGAL SYSTEM IN QATAR According to Article 1179, sums disbursed for seeds, manure and other fertilisers and insecticides, and sums disbursed for cultivation and harvesting are secured by a privilege over the crop for whose production they are spent: they will have the same rank. Such sums are payable out of the proceeds of sale of the crop, immediately after the claims with respect to the court proceedings, sums due to the Public Treasury, expenses for the preservation of and repair to the property and sums secured by a general privilege. Building and agricultural rents for two years, or for the duration of the lease if less than two years, and all sums due to the lessor by virtue of the lease agreement, are all secured by a privilege over all attachable movables and crops existing on the leased property and belonging to the lessee. Subject to the provisions relating to stolen or lost property, this privilege is enforceable even when the movables belong to the wife of the lessee or to a third party, as long as it is not established that the lessor had knowledge, at the time the movables were brought onto the leased property, of the existence of a third party’s rights. The privilege is also enforceable over movables and crops belonging to a sub-lessee, if the lessor had expressly prohibited sub-letting. If sub-letting was not prohibited, the privilege will only be enforceable up to the amounts due by such sub-lessee to the principal lessee on the date a formal summons is served by the lessor for non-payment of these sums. If movables and crops so charged are removed from the leased property, notwithstanding the objection of the lessor or without his knowledge, and the movables remaining on the property are not sufficient to secure the privileged claims, the privilege is enforceable on the movables and crops by third parties in good faith. The privilege shall remain in force for three years from the date of the removal, even to the detriment of a third party’s rights, if the lessor effects within the prescribed time limit an attachment on the movables and crops removed. If, however. The movables and crops are sold to a purchaser in good faith in the market by public auction or by a merchant dealing in similar articles, the lessor must reimburse the purchaser with the price. These privileged claims are payable out of the proceeds of sale of such movables and crops subject to such privilege, immediately after the claims above-mentioned with the exception of claims in respect of which the privilege does not operate against the lessor in as much as he is a third party holder in good faith. Around the world Athens Beirut Bangkok Berlin Cairo Cape Town Colombo Dhaka Hong Kong Istanbul Jakarta Karachi London Manila Moscow New Delhi New York Paris Sao Paulo Seoul Singapore Sydney Tokyo Weather today Clear C Showers P Cloudy C Rain C Showers P Cloudy P Cloudy P Cloudy Clear P Cloudy M Cloudy P Cloudy P Cloudy C Rain Snow Clear C Showers C Rain Clear Clear T Storms Clear Clear Max/min 08/05 08/05 31/23 08/07 13/05 29/19 31/23 23/14 18/13 02/02 31/26 27/13 13/12 26/21 -6/-8 18/07 00/-9 14/13 33/21 02/-5 28/24 33/21 10/00 20 Gulf Times Saturday, January 10, 2015 QATAR Dr al-Sulaiman (second, left) joins a military pilot, plane owner and other guests in a photo opportunity at the 8th Al Khor Fly In yesterday. PICTURE: Joey Aguilar. PC-21 instructor pilot Rick Williams urges citizens to join the Qatar Air Force. PICTURE: Joey Aguilar Al Khor Fly In event sparks children’s interest in aviation By Joey Aguilar Staff Reporter T he annual staging of the Al Khor Fly In is an indication of the growing interest on aviation especially in the Middle East, a senior official of the Qatar Aeronautical College (QAC) has said. Dr Saeed al-Sulaiman, director of Academic Affairs/Registration, QAC, was talking to Gulf Times on the sidelines of the 8th Al Khor Fly In, which opened yesterday at the Al Khor air п¬Ѓeld. “Here you can see people bringing their own aircraft, from jet to smaller and lighter planes,” he said. “This shows how aviation is spreading in the world especially here in the Gulf, in the Middle East.” The two-day event features light aircraft like autogyros, weight-shift microlight planes, Cessna planes and helicopters. This year, two new PC-21 п¬Ѓxed wing trainer planes flown by pilots from the Qatar Emiri Air Force are among the main attractions. QAC, the Civil Aviation Authority, Boeing, Qatar Airways, and other companies are also conducting activities for visitors at their stalls in a bid to create awareness on aviation among children. Al-Sulaiman said that knowledge on aviation is also spreading very fast especially with the advent of modern technology. “There are no limits on knowledge. I call this the revolution of technology because it will make everything possible,” he noted. “I also feel manufacturing of small aircraft is going to increase.” The senior QAC official pointed out that aviation plays an important role in every country since aircraft are used for various purposes such rescue (or A child gets trained on a basic flight simulator at the Qatar Aeronautical College’s pavilion at the Al Khor Fly In yesterday. PICTURE: Jayan Orma. emergency), medical and tourism, among others. Despite the challenges, he believes that aviation will also continue to create many opportunities not only for residents in the country but in the whole region as well. “A lot of people want to fly and buy an aircraft in the future,” he said. “Aviation is available to everybody, it is easy and not complicated.” PC-21 instructor pilot Rick Williams echoed the statements of al-Sulaiman saying they are currently training pilots for the frontline. He stressed that part of their vision is to produce not only highly qualiп¬Ѓed civilian pilots but also to open a college for military pilots. With more pilots, Williams said they will be able to п¬Ѓll all the planes that Qatar Air Force has been purchasing. “The efforts in opening up these colleges are actually going to be able to put us world class, aviation training wise. Qatar will be number one I am sure, in no time,” he added. About some tips for aspiring Qatari pilots, he said: “I want them to join the Qatar Air Force and tell me they want to fly п¬Ѓghter jets. In that way we can train them and impart proper, efficient, safe training and eventually they will be flying in the front line for their country in the most advanced aircraft.” PC-21 п¬Ѓxed wing trainer planes arrived in the country in October last year and were showcased during the Qatar National Day, according to Williams. Visitors to the Al Khor Fly In take a close look at some autogyros. PICTURE: Jayan Orma. Children have fun with big toy planes at the Al Khor Fly In. PICTURE: Jayan Orma. Visitors are seen near a Cessna 680 Sovereign plane. A light aircraft approaches for landing during Al Khor Fly In yesterday. PICTURE: Jayan Orma. PREMIUM SERVICE | Page 2 SHARES GAIN | Page 3 India’s newest airline Vistara takes off Infosys Q3 net profit rises 13% Saturday, January 10, 2015 Rabia I 19, 1436 AH JOBLESS RATE UNCHANGED : Page 12 GULF TIMES Canada loses jobs for second month in a row; housing cools BUSINESS Cyprus Airways closed down after EU ruling Money paid out in 2012 and 2013 as part of a €103mn ($122mn) restructuring package would have to be recovered by the government Reuters Nicosia/Brussels C yprus closed down its flag carrier Cyprus Airways yesterday after the European Commission ordered the struggling airline to pay back over €65mn in illegal state aid. EU Competition Commissioner Margrethe Vestager said Cyprus Airways had no chance of becoming viable without continued state subsidies, meaning the money paid out in 2012 and 2013 as part of a €103mn ($122mn) restructuring package would have to be recovered by the government. In 2013, Cyprus was forced to take a €10bn bailout from the European Union and International Monetary Fund. In Nicosia, authorities said the Cyprus Airways decision meant a suspension of operations. “The company has ceased being a viable entity, and cannot continue to operate,” Finance Minister Harris Georgiades told reporters. Asked when the company would cease flights, he said: “From tomorrow there will be alternative arrangements.” An administrator would be appointed and it was expected its air licence certiп¬Ѓcate would be revoked, he said. Under EU rules a company can only receive state assistance once every 10 years. Cyprus Airways, which recently resorted to selling assets such as its slot at A Cyprus Airways aircraft landing in Larnaca airport yesterday. EU Competition Commissioner Margrethe Vestager said Cyprus Airways had no chance of becoming viable without continued state subsidies. London Heathrow to stay afloat, had previously received п¬Ѓnancial assistance in 2007. The Commission opened an investigation into the aid in March 2013, and the stateowned airline has 10 years to pay back the money. The Commission said Cyprus had provided no evidence that the airline faced “exceptional and unforeseeable” circumstances that would justify additional aid after the 2007 rescue package. “Cyprus Airways has received large quantities of public money since 2007 but was unable to restructure and become viable without continued state support ... injecting additional public money would only have prolonged the struggle without achieving a turn-around,” Vestager said in the statement. In addition, EU law requires that the company receiving restructuring aid contributes at least 50% to the cost. “The Commission found that Cyprus Airways’ own contribution is signiп¬Ѓcantly below the level of 50% required by the guidelines,” it said. Attempts to sell Cyprus Airways flopped last year. European low-budget airline Ryanair and Greece’s Aegean Airlines had expressed some preliminary interest but it was not followed up with anything п¬Ѓrmer. Both Ryanair and Aegean, which have taken market share away from Cyprus Airways, have submitted applications to Cypriot authorities seeking an air operator certiп¬Ѓcate, which would allow them to create subsidiaries on the island. Turkey’s Tupras faces $69mn hit from tax demand and related fines Reuters Istanbul Turkey’s sole oil refiner Tupras said it faces a tax demand and related fines totalling 160mn lira ($69mn) following an 18-month investigation by authorities. The demand for 65.6mn lira and fines of 94.4mn lira date from 2009 to 2013, the company said in a filing with the stock exchange. “We plan to utilise all of our legal rights including negotiations,” Tupras, owned by Turkey’s biggest company Koc Holding, added in the statement late on Thursday. A Tupras official declined to comment further. In the past, tax fines levied on companies have been reduced sharply after negotiations. Shares in Tupras, which is based in Kocaeli province, dipped 0.88% to 56.05 lira yesterday morning, while the broader index was slightly higher. The tax investigation began in July 2013, when police and finance ministry inspectors raided the offices of Tupras and Aygaz — Turkey’s biggest seller of liquefied petroleum gas, also owned by Koc — and checked their physical inventories. At the time, Finance Minister Mehmet Simsek denied the probe was politically motivated. Some analysts had pointed to criticism of the Koc family, one of Turkey’s wealthiest, by President Tayyip Erdogan, then prime minister, for its perceived role in supporting antigovernment demonstrations in June 2013. The family owns five of Turkey’s 10 largest companies, and Erdogan expressed anger with the Koc-run Divan Hotel for opening its doors to protesters fleeing police tear gas. The hotel said at the time that it acted humanely and the accusations of backing the protests were unfair. However, Erdogan — elected president in 2014 — last month attended a ceremony for a $3bn upgrade of the Tupras refinery, one of Turkey’s largest-ever industrial investments, leading to speculation the two sides had made amends. Tupras has faced official penalties in the past. In 2014, the competition board fined it 412mn lira for abusing its dominant market position in pricing and contracts Tupras has faced official penalties in the past. In 2014, the competition board fined it 412mn lira for abusing its dominant market position in pricing and contracts. It was also ordered to pay 605mn lira in back taxes and fines in 2010 but negotiated it down to 153mn. The Koc family is one of the most prominent dynasties among a secular business elite in Turkey that has at times had an uneasy relationship with Erdogan’s Islamist-rooted AK Party. Erdogan’s government has in the past levied severe tax fines and seized the assets of media firms perceived to be critical of his administration. The government has denied any political motivation in such cases. Monte dei Paschi says ECB asking for 14.3% core capital level Reuters Milan/Rome T he European Central Bank (ECB) has asked Monte dei Paschi di Siena to raise its core capital level to 14.3% as it sets new, tougher requirements for riskier lenders to bolster their п¬Ѓnancial strength. The Tuscan lender, which emerged as the weakest bank in a Europe-wide health check of the sector last year, said the ECB request was preliminary and subject to changes, adding it was reviewing the proposal and would reply on January 16. Its shares were down 4.4% by 1205 GMT. The ECB’s 14.3% Common Equity Tier 1 or core capital requirement compares with a level of 12.8% the bank had at the end of September 2014. Monte dei Paschi’s statement came after Il Sole 24 Ore daily said the ECB had decided to assign speciп¬Ѓc capital requirements to individual banks which in the case of most Italian lenders will be much higher than those set by Basel III rules. Italy’s bank sector fared the worst in the ECB’s assessment, laying bare the extent of the economic crisis in the eurozone’s third biggest economy. Nine Italian lenders failed the tests although only Monte dei Paschi and Carige still have a capital shortfall to п¬Ѓll. The two banks have already announced plans for a €2.5bn and a €700mn capital increase respectively. The ECB sent letters to the banks it directly supervises where it outlined concerns and potential consequences based on the results of the assessment in October, banking sources said, but not all have been told to raise their capital levels. The request signals steps by the ECB to tighten its grip as the eurozone’s most powerful banking supervisor by making speciп¬Ѓc banks hold capital above minimum requirements depending on the riskiness of their operations. One banking source described the letters as an individual dialogue based on details revealed by the unprecedented thoroughness of the assessment. The banks have January to respond to those letters, though a second source said the room for negotiation was limited, and are expected to reach concrete conclusions in February. Il Sole said the new requirements would in particular set an average common equity Tier 1 ratio floor for the 15 Italian banks under ECB supervision of 10.5%. That compares with a general Basel III minimum capital requirement of 7%. The new capital requirements are part of the so-called regular supervisory review of lenders, which was until last year done by national supervisors and is now done by the ECB. European regulators say the review’s purpose is to ensure banks have adequate strategies as well as capital and liquidity to ensure a sound management and coverage of risks to which they are or might be exposed. “The ECB needs to show all the institutions that it takes its role as supervisor seriously,” said KPMG partner Daniel Quinten, a former regulator at the German central bank. “I would expect the ECB to dig a little deeper into all these areas — capital adequacy, governance and controls, liquidity, and business models,” he said. Some analysts said tougher capital rules could further curb bank lending, threatening efforts to kickstart the economy. “There is a concrete risk that if banks must have higher capital levels, they will lend less to households and businesses, and this will have a negative impact on the economy,” said Vincenzo Longo of IG. Il Sole said the CET 1 floor requirement for UBI Banca will be 9.6%, while unlisted Banca Popolare di Vicenza will have to lift its CET 1 to 11.6%. It gave no exact capital requirements for other Italian lenders. A source close to UBI conп¬Ѓrmed the bank had received a request to raise its minimum core capital, without elaborating. Popolare Vicenza said the required capital level was “well below” 11.6%. Il Sole said that if the banks fail to convince the ECB to reduce the proposed minimum requirements, they will have to apply the new floors as of February or March. The ECB declined to comment on individual banks. A view of the Monte dei Paschi di Siena headquarters in Milan. The Tuscan lender said it was reviewing the ECB request to raise its core capital level, and would reply on January 16. 2 Gulf Times Saturday, January 10, 2015 BUSINESS India’s newest airline takes off seeking upmarket flyers China’s Kaisa misses coupon deadline AFP New Delhi Reuters Hong Kong I ndia’s newest airline made its maiden flight yesterday, kickstarting attempts to attract well-heeled passengers in a market dominated by loss-making, no-frills carriers. New airline Vistara – a Sanskrit word meaning “limitless expanse” – took off from New Delhi for п¬Ѓnancial hub Mumbai, offering flyers premium services including a string of special meal options. “Being full service doesn’t mean you’re lavish or you’re over the top. It means serving different customers’ needs differently,” Vistara chairman Prasad Menon said at Delhi airport. India’s aviation market is expected to be the third-largest globally within a decade. But the sector is currently plagued by losses stemming from hefty operating costs and bruising fare wars that has left at least one no-frills carrier, SpiceJet, struggling. Vistara is steering clear of the budget market dominated by a string of mostly loss-making airlines who last year had offered fares lower than the price of a second-class train ticket. Instead, Vistara’s premium economy fares for short flights from the capital to Mumbai start at Rs12,000 ($190). The airline is 49% owned by deep-pocketed Singapore airlines, one of the world’s top-rated carriers. Mumbai-based Tata conglomerate, one of India’s most respected brands, controls the other 51%. “India’s aviation market has been expanding rapidly and we have been eager to directly participate in and contribute towards this growth story for many years,” Singapore Airlines CEO Goh Choon Phong said in a statement. Analysts said Vistara has a chance of success given the recent drop in hefty fuel prices, thanks to a fall in global oil prices, and the fact the ailing Indian economy was expected to pick up. “There will always be a niche of passengers who do not mind paying a bit more for better quality,” D Vistara made its maiden flight yesterday, kickstarting attempts to attract well-heeled passengers in a market dominated by loss-making, no-frills carriers. Amrit Pandurangi, senior director for aviation at Deloitte India, told AFP. “It (Vistara) just needs to keep focusing on maintaining its difference from other players in the market.” India’s intense airline competition has seen at least one casualty, with Kingп¬Ѓsher Airlines grounded in 2012 laden with debts and Spicejet currently desperately seeking an outside investor. Vistara, operating the 148-seater Airbus A320200 on three routes initially, is the third full-service carrier after state-run Air India and Jet Airways, both currently in the red. Tata also holds a stake in an Indian low-cost carrier, which started flying last June, operated by Asia’s biggest-budget airline AirAsia. The previous national Congress government began allowing foreign airlines to buy up to 49% stakes in Indian carriers in 2012. Japan machinery orders seen rebounding Reuters Tokyo J Japan’s core machinery orders likely rose 5% in November from the previous month, the poll of 21 analysts showed yesterday. apan’s leading indicator of capital expenditure probably rebounded in November, a Reuters poll showed, as strong corporate earnings on the back of a weak yen encouraged more п¬Ѓrms to spend. The nation’s current account balance will likely show a modest surplus in November helped by a lower trade deп¬Ѓcit due to falling oil prices and a rise in income from overseas investment due to the soft yen. Core machinery orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, likely rose 5% in November from the previous month, the poll of 21 analysts showed. That compared with a 6.4% fall in October and followed a 2.9% rise in September. Compared with a year earlier, core orders probably fell 5.8% in November, the poll found, down for the second straight month. Still, the economy is expected to emerge from recession in the last three months of 2014, after unexpectedly contracting following a sharperthan-expected drop in consumption following a sales tax hike last April. “The appetite for capital spending among п¬Ѓrms, especially the big manufacturing sector, is on the rise as the impact from the yen’s weakness on boosting corporate earnings is big,” said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute. Analysts say п¬Ѓrms’ capital spending is expected to recover but only at a modest pace. “We expect a moderate increase (in core machinery orders) although there are some weakness seen reflecting stalling domestic demand and a stagnant volume of exports,” said Takeshi Minami, chief economist at Norinchukin Research Institute. The Cabinet Office will release the data on January15. The poll also showed the current account balance, which will be released on Monday, is expected to show a surplus of ВҐ133.2bn ($1.12bn) in November, which would be a п¬Ѓve straight monthly surplus. “Falls in oil prices contributed to a narrowing trade deп¬Ѓcit and the weak yen helped gains in the income balance,” said Tsunoda at Shinkin Central Bank Research Institute. But the expected surplus for November will be smaller than a surplus of ВҐ833.4bn in October. Wholesale prices, which measures the price companies charge each other for goods and prices, likely rose 2.1% in the year to December following a 2.7% gain in November, the poll showed. eveloper Kaisa Group Holdings missed a deadline to pay a $26mn bond coupon, fuelling investors’ concerns about the creditworthiness of Chinese property п¬Ѓrms amid a downturn in the market. The payment was due on midnight Hong Kong time (1600) on Thursday, but traders said Kaisa had a 30-day grace period to resolve the situation. Failure to pay the coupon on Kaisa’s 2020 bond could trigger the п¬Ѓrst dollar bond default by a Chinese property issuer. “The main thing now is payment before the grace period. Lateness does not matter as the market has already priced that in the bonds,” said a Hong Kong-based trader who declined to be named as he was not authorised to speak to the media. Shenzhen-based Kaisa has declined to comment on its debt issues. The company, one of China’s smaller listed developers, warned last week it may default on more debt after it failed to repay HSBC a HK$400mn ($51mn) loan that was due on December 31. Trading in the 2020 bond remained subdued yesterday at around 30 cents on the dollar. All Kaisa’s outstanding bonds have lost two-thirds of their value over the past month and its shares have been suspended since the end of December, after it was hit by the resignation of senior executives and a government-imposed block on some of its projects. China’s property market, a key driver of economic growth with also affects more than 40 other sectors from cement to furniture, is grappling with oversupply and tighter credit. Investment in the sector grew at its slowest pace in over п¬Ѓve years between January to November, data showed last month. The government is also increasingly scrutinising developers in the southern Guangdong area as part of a widespread campaign against corruption, heightening investors’ concerns. Yesterday, newly listed developer Logan Property said the authorities had since 2010 locked three units, now worth some 6mn yuan ($967,000) at a residential project in the southern city of Shenzhen in Guangdong. I It said the lock was due to land problems at a nearby gas station and that the issue would not have any impact on its business, but traders said the news was likely to fuel market jitters about developers in Guangdong. A future for PCs? Acer’s Jason Chen is betting the company on next-gen models Bloomberg Taipei When Jason Chen took over as chief executive officer at Acer Inc a year ago, he was handed a three-page, colourcoded list of problems at the ailing PC maker. He shoved the memo in a drawer and never looked at it again. Instead, the 53-year-old focused on the positive. Chen crafted a 100-day plan after reading books about turnarounds at International Business Machines Corp and Japan Airlines Co. He met with employees at Acer’s Taipei headquarters to share ideas and then headed overseas to bolster morale. Defying predictions of a PC industry in decline as consumers shift to mobile devices, Acer is betting on next-generation models, including inexpensive laptops that run Google Inc’s Chrome software and tabletlaptop hybrids, while expanding into phones and cloud computing. With the company’s shares rising 17% last year, Chen is declaring his turnaround complete and predicting a return to sales growth. “Any and every company has a lot of problems,” Chen said during an interview at Acer’s headquarters. “I pay much more attention to what are the strengths of the company and how do we use the strengths to capture opportunity.” Acer hasn’t seen much of Chen’s brand of optimism lately. In the three years before he came on, the company’s stock tumbled 80% as the PC market slid and profits evaporated. The company ultimately took $450mn in write-offs, and the previous management team resigned. Chen has “delivered what’s needed to take the first step in turning around the company,” said Vincent Chen, at Yuanta Financial Holding Co, who rates Acer a hold. “He’s been successful in controlling the losses and turning to profit.” Although Jason Chen was born in Taiwan, he’s travelled the world for his career. He worked at IBM, Intel Corp and most recently Taiwan Semiconductor Manufacturing Co before joining Acer. A salesman by training, he emphasises words such as “optimise” and “stabilise.” Asked why he accepted the proposal from Acer founder Stan Shih to lead the company, Chen said it was the size of the undertaking that attracted him. “The key word was вЂ�challenge,’” he said in the December 16 interview. “The highest-level challenge in business is turnaround.” Having bled cash, market share and revenue during the past three years, Chen wants to take the former notebook-computer leader back to basics. He set up regular Monday morning meetings to model revenue expectations for the coming six months so he can decide how much to spend. Acer’s experience is in the “not-socomfortable” business of making PCs, Chen said. Rather than shifting to completely new businesses, he wants to make steady improvements within PCs while expanding in related areas. By exploiting the core business, Chen said Acer would return to annual revenue growth this year for the first time in five years. “The turnaround is pretty much done,” he said. This year, “we should no longer talk about turnaround.” Acer sees its biggest chance in the nascent market for Chromebooks – lowcost laptops that run Google’s operating system and eschew expensive internal storage drives. Acer has about 35% of the market, according to researcher International Data Corp, and figures growth in the category will lift its fortunes. The company announced what it said was the industry’s first 15.6-inch Chromebook January 3 in Las Vegas. Chromebooks probably won’t be a “cure-all,” said Bryan Ma, a PC analyst at IDC in Singapore. “It might help stabilise things to get them back up onto their feet in the short term,” he said. “Ultimately, the bigger question is how they plan to address product categories beyond the PC.” Convertible notebooks – with detachable keyboards that allow them to transform into tablets – let Acer cater to those who’ve been dumping PCs for Apple Inc iPads. Meanwhile, high- end models will help the company attract the gamer crowd that hasn’t yet given up on computers entirely. Acer is also venturing into smartphones. From a small base, the company has tripled its sales during the past three years and plans to keep its focus tight, exploring different markets and strategies to find a successful formula. That low-key, small-scale approach will allow Acer to ride out a wave of hyper-competition that’s likely to wipe out rivals, Chen said. It’ll also help the company stay alive long enough to realise Shih’s dream of building a cloud-computing ecosystem that Acer’s founder first conceived of a decade ago. Relaunched last year under the Build Your Own Cloud tag, Acer’s vision is to let users host their own data at home using the company’s software and hardware platforms, avoiding the pitfalls that have seen bigger names fall victim to hacking and privacy breaches. While Chen refused to grade his own first-year performance, investors and customers have already bought into the sales spiel. Acer’s stock price, market share and shipments have grown, and analysts are predicting its fourth-quarter revenue will show the first gain since June 2012. “I am a strong believer that when you face the sun, and move as fast as you can toward the sun, the shadow will be behind us,” Chen said. “But if you keep looking at the shadow, it’ll grow longer because the sun sets.” Chen: Using company’s strengths to capture opportunity. Gulf Times Saturday, January 10, 2015 3 BUSINESS China central bank to keep вЂ�prudent’ monetary policy Taiwan’s exports hit record high in ’14 AFP Taipei Reuters Beijing T T he People’s Bank of China will continue to maintain “prudent” monetary policy in 2015, keeping credit growth stable while having its hands free to п¬Ѓne-tune policy when necessary, the regulator said in an online statement yesterday. However, the central bank said it would quicken the pace of market-oriented interest rate reform and push forward on increasing yuan convertability in the capital account. The People’s Bank of China (PBoC) also said it would take steps to prevent systemic risks in the п¬Ѓnancial sector, a sign that regulators will maintain pressure on off-balance sheet lending and shadow banking. China has made a series of moves to clamp down on shadow banking in recent months, including tighter regulations on the usage of bond market and interbank assets for reп¬Ѓnancing. The announcement reiterates the PBoC’s commitment to stable monetary policy, even as speculation mounts that Beijing will have to take steps to boost growth and fend off deflationary pressures, in particular loosening monetary policy by cutting reserve requirement ratios (RRR) for banks. But many economists believe the PBoC has resisted such calls because it fears that weak demand for loans from viable corporate borrowers means fresh liquidity will only be funnelled into speculative ventures or help reinflate asset bubbles in property. Analysts say the PBoC could take that view because of its experience in 2009, when stimulus spending caused widespread economic distortions. A 50 basis point standard RRR cut would create an estimated 2.4tn yuan ($386.57bn) in new funds after the money multiplier is applied. Liu Ligang, China economist at ANZ A pedestrian walks past the People’s Bank of China in Beijing. The central bank said yesterday it would quicken the pace of market-oriented interest rate reform and push forward on increasing yuan convertability in the capital account. in Hong Kong, has called for the central bank to cut RRR or otherwise inject more cash into the system. He said that usually in an economy that’s slowing п¬Ѓrms do not see the need for fast investment and “may not want to borrow more”. “But China’s case is a bit different,” Liu said. “If you look at the last six years, п¬Ѓrms have leveraged up quite a lot, previously bank loans were at quite high interest rates. If China can relax monetary policy further, п¬Ѓrms could have a great incentive to borrow at a lower rate, and use them to pay off high-yield debt. Merely doing so will alleviate п¬Ѓrms’ п¬Ѓnancial burdens and also the risk of default.” aiwan’s exports rose 2.7% year-on-year to a record high of $313.84bn in 2014, helped by booming demand for smartphones and other electronic products, the government said yesterday. Electronics exports rose 13.5% last year compared to 2013 to hit $99.99bn, the п¬Ѓnance ministry said, while shipments of metals and machinery from the exportreliant island also increased. Exports to all overseas markets grew, including a 7.1% rise in shipments to the US to $34.87bn and a 2.9% increase to China and Hong Kong to $124.69bn. Much of the growth was driven by shipments of new mobile devices, including Apple’s iPhone 6, which helped drive export orders higher for ten straight months. Taiwan’s Hon Hai, also known as Foxconn, is the world’s largest computer components manufacturer and assembles products for leading international brands including Apple’s iPhones. But the strong export growth weakened towards the end of the year, dipping 2.8% in December for the п¬Ѓrst time since the start of the year due to shrinking demand in most overseas markets. The monthly п¬Ѓgure was dragged down by a nearly 40% slump in exports of mining products to $1.27bn, which cancelled out a 9.7% increase in electronic exports to $8.43bn. Last year Taiwan’s economic growth was buoyed by a steady recovery in developed countries as well as improved domestic consumption. Weak yen spurs Japan electronics п¬Ѓrms to bring production home Reuters Tokyo C Sikka: Trying to revive Infosys by focusing on innovation. Infosys Q3 net profit rises 13%, shares gain AFP Bangalore Indian software giant Infosys announced yesterday a better-than-expected 13% jump in third-quarter net profit, helped by strong demand for services in the US. The country’s secondlargest IT services exporter said October-December net profit hit Rs32.50bn ($521mn), up from Rs28.75bn in the same period last year. Analysts had expected profits to be about Rs31.5bn. “We are seeing good demand from North America while Europe is a bit muted,” said Vishal Sikka, Infosys chief executive and managing director. Infosys shares cheered the earnings, gaining 4.99% to Rs2,073. They had hit an intra-day low of Rs1,914.10 before the profit news was announced. The company, created by seven software professionals around a kitchen table in the 1980s, said it was confident of expanding revenues by seven to nine% in the current year ending March 31. In the just ended quarter, Infosys’ revenues rose to Rs137.96bn ($2.21bn) from Rs130.03bn a year ago. The company, based in the southern high-tech hub of Bangalore, announced it has more than $5.5bn in cash reserves, but top management did not detail how the firm planned to spend it. Infosys, once known as the “bellwether” of India’s flagship outsourcing industry and billed as the country’s equivalent of Microsoft, is listed in Mumbai and New York. Sikka replaced co-founder Narayana Murthy, who had been recalled from retirement last year to help Infosys, once the star of India’s information technology sector, regain market share. Sikka, a former executive of SAP AG, is trying to revive Infosys including by focusing on innovation and creating higher-earning opportunities in fields such as data analytics. Co-founders, including Murthy, sold $1.1bn worth of stock in the company in December. Murthy stressed at the time that the sale did not reflect lack of confidence in the company’s prospects and he remained a top investor in Infosys. anon Inc and other Japanese electronics companies want to bring production of some goods back home, reversing a years-old trend of overseas manufacturing as a rapid decline in the value of the yen makes local goods more competitive. The yen has tumbled some 8% since the Bank of Japan last eased monetary policy in October and is now trading near seven-year lows. Since late 2012, it has lost a third of its value due to Prime Minister Shinzo Abe’s reflationary economic policies. The steep slide has raised costs for п¬Ѓrms highly dependent on raw material imports as well as those that manufacture abroad. Now, Canon says it wants domestic production to return to 60% of overall output in three years, up from around 40%. “From now on, new copier, camera and printer products will be built at domestic factories and as they replace older products, the volume of goods made overseas will fall,” said company spokesman Hirotomo Fujimori. Sharp Corp is also looking at lifting the ratio of LCD televisions and refrigerators made in Japan to counter the yen’s weakness, a spokesman said. Panasonic Corp has been considering whether to lift domestic production levels for some time. Its white goods division sees a 1.8bn yen drop in operating income every time the dollar strengthens by one yen, because this division largely produces its goods overseas and sells them in Japan. No companies, however, have yet to go so far as saying that yen weakness is a big enough factor to justify the large investment needed for new domestic plants or assembly lines. “Most white goods sold in Japan are imported from China so it’s natural we could see more goods manufactured in Japan on the back of a weaker yen,” Panasonic CEO Kazuhiro Tsuga said at the Consumer Electronics Show in Las Vegas this week. “But it’s more of a passive rather than a proactive shift,” he added. Canon says it wants production in Japan to return to 60% of overall output in three years, up from around 40% Chinese police buy вЂ�Trojan Horse’ for $24,000 Bloomberg Hong Kong P Police across China are buying software and equipment to tap mobile phones as President Xi Jinping tightens control of public opinion and the spread of information. olice across China are buying software and equipment to tap mobile phones as President Xi Jinping tightens control of public opinion and the spread of information. The police department of the Wenzhou Economic and Technological Development Zone said it spent 149,000 yuan ($24,000) to buy equipment, including what it called Trojan Horse software, from a stateowned technology company, according to a post on its website on Wednesday. The software is used to monitor calls, texts and photos on smartphones, it said in the post, which was removed after gaining attention on Chinese social media. The purchases shed light on the extent to which China monitors its citizens’ personal information amid a broader government clampdown on Internet freedom. Provincial governments and police departments in Jiangsu and Inner Mongolia are seeking to buy similar software to gather information from mobile devices, according to procurement lists on their websites. “Attackers have really shifted their focus to mobile devices as people use mobile for almost every aspect of their lives,” said Bryce Boland, chief technology officer for Asia- Paciп¬Ѓc at online security consultant FireEye Inc “We’re also seeing it being used by nation states, targeting political dissidents and so on.” Authorities have focused on smartphones and tablet computers as more people access the Internet via mobile devices; the number of Chinese people doing so rose 13.6% to 527mn by June from a year earlier, according to government statistics. In a procurement list for informationgathering devices, police in Shandong province sought equipment to gather mobile information on phone contact lists, call records, texts, calendars and social media records, including those for Face- book Inc and Twitter Inc.Both services are blocked in China. The department also sought to collect information deleted from mobile phones. Users may inadvertently install this type of software on their mobile phones by clicking on links or downloading fake or corrupted applications, Boland said. The risks are higher if the apps haven’t been vetted by Apple Inc’s iTunes or Google Inc’s Play store for Android. Two phone calls to the police department’s communications department went unanswered on Wednesday. Wuhan Hongxin Communications Technology Co, which sold the software, also didn’t answer two calls for comment. In November, Apple said it began blocking malicious software aimed at users of its products in China. Security experts discovered that malware known as WireLurker was stealing information from apps running on Apple’s operating systems for personal computers and mobile devices. 4 Gulf Times Saturday, January 10, 2015 BUSINESS HK tycoon Li Ka-shing to revamp business empire Reuters Hong Kong A sia’s richest man, Li Kashing, is restructuring his business empire to create two listed companies, one focusing on property and the other on telecoms, retail and energy, in a bid to boost their value and attract more investors. The 86-year-old Hong Kong tycoon built his sprawling empire over more than half a century from a plastic flower business, but has been frustrated that his group’s listed companies trade at a discount to the book values of their net assets, a common feature of conglomerates. “This transaction is a watershed event in our group’s history. It is transformational from the point of view of shareholder value,” Li said in a statement yesterday. Li’s two largest listed companies are Cheung Kong (Holdings) and Hutchison Whampoa, which both run a wide range of businesses. As on January 7, Cheung Kong, which owns just under half of Hutchison Whampoa, traded at a 23% discount, or about HK$87bn ($11.22bn), to its book value at the end of June 2014, the statement said. “The issue of holding company discount has puzzled us for a long time, until we thought of a way to resolve it during the second half of last year,” Victor Li, executive deputy chairman of Cheung Kong and Hutchison told a news conference when asked why they chose to do the restructuring now. The proposed reorganisation will put the property assets into a new company, Cheung Kong Property Holdings Ltd, with another, CK Hutchison Holdings Ltd, managing ports, telecoms, retail, energy, aircraft leasing and other businesses. The transaction will increase transparency of the group and give investors direct shareholding in the two companies, the statement said. Some analysts said Li had timed the reorganisation to tap growing interest in Hong Kong shares from mainland Chinese investors following a recent link-up that allows investors in Shanghai and Hong Kong to trade shares on each other’s bourses. “Right now it should be a good time, particularly when investors are trying to п¬Ѓnd some high-value investments after the Shanghai-Hong Kong Stock Connect,” said Castor Pang, head of research at Core Paciп¬Ѓc-Yamaichi in Hong Kong. “Some investors are trying to accumulate shares of Cheung Kong and Hutchison,” he added. As part of the reorganisation, Cheung Kong will ask Hutchison Whampoa shareholders to exchange each share for 0.684 CKH Holdings share, resulting in the cancellation of Hutchison shares. The reorganisation comes at a time when Li, who has an estimated $33.5bn net worth, according to Forbes, has been trimming exposure to Hong Kong and buying utility and telecom assets in Europe. As part of the reorganisation, the Li family trust will boost its stake in Canada-listed Husky Energy to 40.2% from 35.6%. Li: Shifting focus to woo investors. China’s inflation rises to 1.5% in Dec AFP Beijing C hinese inflation rebounded marginally in December, the government said yesterday, but economists warned of deflationary threats and called for more monetary stimulus to boost slowing growth in the world’s secondlargest economy. The consumer price index (CPI) rose 1.5% year-on-year in December, the National Bureau of Statistics announced, matching market estimates and marking an increase from a п¬Ѓve-year low of 1.4% in November. But for full year 2014, consumer inflation was 2%, the bureau said, down from 2.6% in 2013 and well below the government’s target of about 3.5%. Also, the producer price index (PPI) – a measure of costs for goods at the factory gate and a leading indicator of the trend for CPI – declined for the 34th straight month. The 3.3% year-on-year fall was larger than the 3.1% median forecast in a Bloomberg News survey, and the biggest since September 2012. The last PPI increase was in January 2012. Moderate inflation can be a boon to consumption as it encourages consumers to buy before prices go up, while falling prices encourage shoppers to delay purchases and companies to put off investment, both of which can hurt growth. “Authorities need to be vigilant on the rising risk of deflation,” ANZ economists Liu Li-Gang and Zhou Hao said in a note after the data were released. China’s economy expanded 7.3% in the third quarter of last year, the slowest since 2009 at the height of the global п¬Ѓnancial crisis, and has showed continued weakness in the fourth quarter. “We believe the weak inflation data in December was mainly the result of falling commodity prices, worsening overcapacity in upstream industries and weak growth momentum,” Nomura economists said in a note. “We expect inflation to remain low in the coming months with concerns over deflation risks continuing to rise.” China announces fourth-quarter and annual growth п¬Ѓgures on January 20. The data suggest authorities will announce fresh monetary easing, the Nomura economists said, adding they expect the central People’s Bank of China (PBoC) to cut interest rates in the second quarter of 2015 while Vendors pack onions in a market in Anhui province. China’s inflation rebounded marginally in December, the government said yesterday. lowering the amount of cash banks must keep on hand once in every quarter this year. Reducing the reserve requirement ratio (RRR) increases the amount of money banks can lend out and help boost economic activity. The last full-fledged RRR cut was in May 2012, though the PBoC carried out targeted reductions last year, part of a series of “mini-stimulus” steps introduced from April when growth began to slow. The PBoC in November cut interest rates for the п¬Ѓrst time in more than two years in a bid to boost growth, though economists have said that move alone would be insufficient. Liu and Zhou of ANZ also called for more monetary stimulus. “In our view, Chinese authorities will need to use both structural reform measures as well as monetary policy tools to head off the risk of deflation, especially when domestic demand remains weak and commodity and energy prices continue to fall,” they wrote. “We therefore believe that RRR cuts, or other monetary policy easing measures with similar effects, can be expected in (the п¬Ѓrst quarter of ) 2015.” Food prices drove December’s inflation uptick, according to statistics bureau п¬Ѓgures, rising 2.9% on-year from 2.3% in November. Nonetheless falling oil and farm commodity prices are likely to add downward pressure this year, according to Julian Evans-Pritchard, China economist at Capital Economics. But he wrote in a note: “With most households and п¬Ѓrms set to beneп¬Ѓt from the fall in inflation, we think concerns about deflation, at least in China’s case, are overplayed.” Chinese authorities are trying to transform the country’s economy to one whereby its increasingly wealthy consumers drive growth. Chinese President Xi Jinping regularly speaks of a “new normal” in which GDP growth moderates to more sustainable levels as the country’s economy matures. Japan reins in spending in extra budget Dow Jones Tokyo Japan will use extra tax revenue and unused funds from last year’s budget to reduce its borrowing and to pay for economic stimulus, in a two-pronged strategy aimed at restoring the nation’s economic and fiscal health. A supplementary budget plan unveiled yesterday proposes spending ВҐ3.5tn ($29bn) on economic stimulus, government officials said. It also projects a drop of ВҐ1.5tn in debt servicing costs amid a recent sharp fall in long-term interest rates. Net spending will increase by ВҐ3.1tn, adding to the ВҐ95.9tn originally budgeted for the current fiscal year to March. Japan also plans to earmark in the extra budget ВҐ90.9bn in aid to West Africa to help with the Ebola crisis along with other humanitarian aid efforts, the officials said. The latest supplementary budget is the smallest in seven years, reflecting an attempt by Prime Minister Shinzo Abe to address concerns about the nation’s towering debt as he tries to lift the economy out of decades of deflation through his “Abenomics” pro-growth policies. The extra spending will be funded by an expected ВҐ1.7tn overshoot in tax revenue and ВҐ2tn in unused budgetary funds from last year. The surplus revenue will enable Abe to reduce borrowing by about 2% from what the government initially projected. The government expects ВҐ51.7tn in tax revenue for the current fiscal year, the highest in 17 years. While the sales tax increase in April is the main reason for the revenue growth, officials say income tax receipts have also grown briskly thanks to many large Corps paying higher salaries and bonuses. Discussions over the budget are being closely watched after Moody’s Investors Service downgraded Japan’s sovereign debt last month. The ratings firm warned about the country’s dire fiscal situation as total central government debt is set to surpass ВҐ1,100tn by the end of March-22 times government revenue and more than double the size of the economy. Supplementary budgets are supposed to be an emergency step to deal with major, unexpected economic events, such as the 2008 Lehman shock or the 2011 Tohoku earthquake. But in recent years such spending has become routine. The smaller extra budget suggests Abe is serious about addressing the country’s high debt level. He said earlier this week that he will make tackling structural economic challenges, such as barriers to female labor participation, an aging population and ballooning social security expenditure, the main focus of his efforts this year. The prime minister’s focus on reviving growth through restructuring and not government spending is expected to be seen in the annual budget for the next fiscal year, which he will unveil on Wednesday, officials said. The total budget is likely to show an increase from the current fiscal year’s initial budget of ВҐ95.9tn, but by only around 1%, they said. A few items will see greater spending, such as ВҐ600bn earmarked for improving day care services, for instance. Honda to pay $70mn in п¬Ѓnes for violating US law Bloomberg Tokyo H onda Motor Co agreed to pay a record $70mn in п¬Ѓnes and submit to stricter oversight for failing to tell the US government about warranty claims and more than 1,700 injuries and deaths linked to potential defects in its cars. Automakers are required to report such information under a 14-year-old US law, and Honda’s violations may have hampered the National Highway Traffic Safety Administration’s ability to quickly identify vehicle flaws. Honda’s violations came to light late last year as investigations into a global crisis over defective air bags cast doubt on the diligence of some automakers to tell the government about all potential product defects. In a synopsis of an internal review п¬Ѓled with NHTSA in November, the Tokyo-based automaker blamed its underreporting on “inadvertent data entry or computer programming errors” that spanned 11 years. “We have resolved this matter and will move forward to build on the important actions Honda has already taken to address our past shortcomings in early-warning reporting,” Rick Schostek, Honda North America’s executive vice-president, said yesterday in a statement. “We continue to fully cooperate with NHTSA to achieve greater transparency and to further enhance our reporting practices.” The civil penalties yesterday comprise two п¬Ѓnes of $35mn, each the maximum allowable under US law. One covers Honda’s failure to report 1,729 death and injury claims from 2003 to 2014. The second covers lapses on completely reporting warranty claims and repairs offered under “customer satisfaction campaigns.” As part of a civil consent order with NHTSA, Honda will revise its regulatory compliance practices, according to the US statement. The number of injury-claim omissions Honda admitted exceeded the 1,144 reports Honda п¬Ѓled over the 11year period. Eight of Honda’s missing reports, from July 1, 2003, to June 30, 2014, involved Takata Corp air-bag inflator ruptures, and NHTSA knew of those incidents, the company said in November. Honda President Takanobu Ito said then that the automaker didn’t share the same understanding as authorities of its obligations under US law. He said local management made many mistakes п¬Ѓling early-warning reports, which NHTSA relies on to help spot po- tential defects. Honda said in October it had asked for a third-party audit of potential inaccuracies in its reports to NHTSA. The company decided in September to include verbal claims from owners or their representatives to make its reporting more consistent with other automakers, it said at the time. Honda has said it has provided NHTSA detailed information relating to all known ruptures of Takata air-bag inflators. JPMorgan Chase & Co’s Singapore branch was “reprimanded” by the island nation’s central bank for letting two representatives provide advice on structured deposits without authorisation. The incidents occurred from Nov. 26, 2010, to January 16, 2013, according to a statement posted to the Monetary Authority of Singapore’s website. The Singapore unit of JPMorgan Chase Bank NA also permitted four unauthor- ized representatives to deal in regulated securities and fund-management activities in the same period. The statement didn’t give details on how JPMorgan was reprimanded. James Murphy, a Hong Kong-based spokesman for JPMorgan, declined to comment on the matter. The US Justice Department has tapped Andrew Weissmann, a former top lawyer at the FBI, to lead prosecution of п¬Ѓnancial and corporate fraud, according to two people familiar with the matter. Weissmann, who led the Enron Task Force, will oversee US investigations into interest-rate manipulation and foreign bribery, said the people, who asked not to be named because the hiring hasn’t been made public. He is now a professor at the New York University School of Law. Weissmann, 56, spent 15 years as a prosecutor at the US attorney’s office in Brooklyn, where he rose to chief of the criminal unit. He also headed the team of prosecutors and Federal Bureau of Investigation agents that investigated cases involving Enron, the nowdefunct Houston energy trader and brought them to trial. Before becoming a law professor, Weissman was general counsel of the FBI from 2011 to 2013 under Director Robert Mueller. Weissmann didn’t immediately respond to an e-mail seeking comment. Peter Carr, a Justice Department spokesman, declined to comment. Walter Jospin was named regional director of the Securities and Exchange Commission’s Atlanta office, the agency said in a statement. Jospin will oversee enforcement and examinations in the п¬Ѓve-state region, the SEC said. Gulf Times Saturday, January 10, 2015 5 BUSINESS DJIA WORLD INDICES Company Name Microsoft Corp Exxon Mobil Corp Johnson & Johnson Wal-Mart Stores Inc Procter & Gamble Co/The General Electric Co Jpmorgan Chase & Co Chevron Corp Pfizer Inc Verizon Communications Inc Coca-Cola Co/The Merck & Co. Inc. Intel Corp At&T Inc Visa Inc-Class A Shares Walt Disney Co/The Intl Business Machines Corp Cisco Systems Inc Home Depot Inc 3M Co United Technologies Corp Unitedhealth Group Inc American Express Co Boeing Co/The Mcdonald’s Corp Goldman Sachs Group Inc Nike Inc -Cl B Du Pont (E.I.) De Nemours Caterpillar Inc Travelers Cos Inc/The Lt Price 47.04 91.74 105.23 89.64 90.60 24.07 59.59 108.00 32.59 46.76 43.32 62.86 36.62 33.54 260.25 94.60 157.96 27.66 105.78 161.93 113.84 103.72 90.66 131.51 93.12 187.77 96.08 73.85 87.52 106.18 % Chg -1.16 -0.53 -1.09 -0.92 -0.55 -1.23 -1.32 -2.18 0.26 -0.89 -0.44 0.02 -0.19 0.12 -1.59 0.86 -0.29 0.55 -0.88 -1.04 -0.71 -0.94 -1.00 -0.22 -1.31 -1.31 -1.01 -0.91 -1.34 -0.93 9,749,897 4,903,601 2,095,936 3,545,152 1,438,716 10,886,322 5,186,462 3,630,221 8,758,604 4,924,286 3,276,772 4,303,641 9,545,647 7,844,184 928,515 3,679,526 1,719,660 8,332,038 1,675,880 810,356 1,049,252 1,188,383 1,309,581 1,213,605 1,507,214 645,926 895,976 3,197,980 1,864,672 486,944 FTSE 100 Company Name Wpp Plc Wolseley Plc Wm Morrison Supermarkets Whitbread Plc Weir Group Plc/The Vodafone Group Plc United Utilities Group Plc Unilever Plc Tullow Oil Plc Tui Ag-New Tui Ag-Di Travis Perkins Plc Tesco Plc Taylor Wimpey Plc Standard Life Plc Standard Chartered Plc St James’s Place Plc Sse Plc Sports Direct International Smiths Group Plc Smith & Nephew Plc Sky Plc Shire Plc Severn Trent Plc Schroders Plc Sainsbury (J) Plc Sage Group Plc/The Sabmiller Plc Rsa Insurance Group Plc Royal Mail Plc Royal Dutch Shell Plc-B Shs Royal Dutch Shell Plc-A Shs Royal Bank Of Scotland Group Rolls-Royce Holdings Plc Rio Tinto Plc Reed Elsevier Plc Reckitt Benckiser Group Plc Randgold Resources Ltd Prudential Plc Persimmon Plc Pearson Plc Old Mutual Plc Next Plc National Grid Plc Mondi Plc Meggitt Plc Marks & Spencer Group Plc London Stock Exchange Group Lloyds Banking Group Plc Legal & General Group Plc Land Securities Group Plc Kingfisher Plc Johnson Matthey Plc Itv Plc Intu Properties Plc Intl Consolidated Airline-Di Intertek Group Plc Intercontinental Hotels Grou Imperial Tobacco Group Plc Hsbc Holdings Plc Hargreaves Lansdown Plc Hammerson Plc Glencore Plc Glaxosmithkline Plc Gkn Plc G4s Plc Friends Life Group Ltd Fresnillo Plc Experian Plc Easyjet Plc Dixons Carphone Plc Direct Line Insurance Group Diageo Plc Crh Plc Compass Group Plc Coca-Cola Hbc Ag-Cdi Centrica Plc Carnival Plc Capita Plc Burberry Group Plc Bunzl Plc Bt Group Plc British Land Co Plc British American Tobacco Plc Bp Plc Bhp Billiton Plc Bg Group Plc Barratt Developments Plc Barclays Plc Bae Systems Plc Babcock Intl Group Plc Aviva Plc Astrazeneca Plc Associated British Foods Plc Ashtead Group Plc Arm Holdings Plc Antofagasta Plc Anglo American Plc Aggreko Plc Admiral Group Plc Aberdeen Asset Mgmt Plc 3I Group Plc Lt Price 1,358.00 3,699.00 176.30 4,713.00 1,767.00 224.90 938.00 2,626.00 387.00 1,078.00 1,114.00 1,781.00 204.10 125.70 388.30 945.10 783.50 1,595.00 693.00 1,077.00 1,182.00 884.00 4,741.00 2,053.00 2,633.00 241.80 462.60 3,321.00 431.70 422.00 2,160.00 2,106.50 367.70 862.00 2,985.00 1,090.00 5,245.00 4,931.00 1,478.00 1,459.00 1,177.00 189.10 6,890.00 922.50 1,049.00 517.00 448.00 2,215.00 73.74 244.10 1,182.00 321.40 3,506.00 213.50 334.30 465.40 2,459.00 2,598.00 2,934.00 602.00 947.50 618.50 286.20 1,409.50 337.80 271.90 371.70 816.00 1,093.00 1,630.00 455.40 299.20 1,823.50 1,523.00 1,081.00 1,128.00 268.80 3,016.00 1,077.00 1,647.00 1,812.00 392.50 773.50 3,472.00 398.65 1,376.00 830.10 431.40 231.00 467.70 1,031.00 490.40 4,587.00 3,078.00 1,139.00 978.50 750.00 1,152.50 1,529.00 1,353.00 421.90 430.70 % Chg -0.22 -1.04 -4.55 -0.44 -0.56 -0.38 -0.42 -1.57 -1.75 0.00 0.36 -1.77 -2.46 -5.35 -1.89 -2.64 -1.51 -0.31 -1.42 -1.28 -1.17 -0.34 1.17 -0.24 -1.02 -4.20 -0.64 -1.23 -0.44 0.38 -1.82 -1.68 -2.65 -2.27 -1.40 -0.27 -0.29 0.88 -1.73 -5.20 1.20 -2.22 -0.22 -1.06 -0.38 -1.15 0.25 -0.05 -0.49 -0.29 0.08 -0.40 1.45 1.91 -1.47 -1.75 1.19 -1.37 -0.54 -0.69 -3.07 -0.88 -2.14 -1.26 -1.08 -1.31 1.81 -1.03 0.18 0.87 -1.15 0.71 -1.41 -1.87 -0.92 -2.42 -0.92 -1.05 -1.19 -0.24 0.33 -1.70 -0.64 -1.15 -1.57 -0.83 -1.47 -5.12 -2.55 -0.26 -3.28 1.49 0.32 -0.58 0.71 -2.15 0.54 -2.41 0.72 1.20 -1.49 -0.53 Volume 3,868,453 649,129 14,766,293 407,015 1,745,073 53,882,776 1,638,923 2,081,771 7,547,105 1,750,837 1,533,387 633,972 58,209,505 49,053,948 3,097,377 8,396,976 821,768 2,497,375 917,680 851,301 1,831,231 3,067,110 1,362,977 765,924 280,173 15,260,148 2,407,391 3,258,629 4,798,194 1,411,145 4,306,279 4,167,176 19,672,780 5,184,723 3,817,859 2,312,187 938,225 706,452 2,529,432 1,568,053 3,120,023 8,238,073 385,144 7,608,085 1,223,050 1,529,552 9,111,211 460,842 94,697,410 8,834,931 1,609,540 5,681,284 639,918 14,492,599 2,275,555 13,176,447 787,791 490,316 1,859,101 28,810,183 897,247 2,156,872 21,967,948 7,866,803 3,409,693 2,778,480 6,524,679 1,313,488 2,199,348 1,891,330 3,037,378 4,533,883 3,180,686 1,433,918 3,469,562 420,390 12,391,467 727,078 1,006,173 698,814 536,020 11,081,430 3,060,017 1,749,023 30,607,664 6,856,856 8,667,128 7,119,602 46,548,871 6,547,901 1,466,179 16,471,080 2,252,198 525,772 2,773,337 3,281,451 2,397,875 3,905,944 708,838 698,065 3,874,836 1,868,740 TOKYO Company Name Inpex Corp Daiwa House Industry Co Ltd Sekisui House Ltd Kirin Holdings Co Ltd Japan Tobacco Inc Seven & I Holdings Co Ltd Toray Industries Inc Asahi Kasei Corp Sumitomo Chemical Co Ltd Shin-Etsu Chemical Co Ltd Mitsubishi Chemical Holdings Kao Corp Takeda Pharmaceutical Co Ltd Astellas Pharma Inc Eisai Co Ltd Daiichi Sankyo Co Ltd Fujifilm Holdings Corp Shiseido Co Ltd Jx Holdings Inc Lt Price 1,235.50 2,249.00 1,551.00 1,442.50 3,200.00 4,366.50 957.50 1,086.50 460.00 7,758.00 588.30 4,709.00 5,107.00 1,778.00 4,807.50 1,594.50 3,741.50 1,696.50 444.70 % Chg -0.08 -1.06 -1.24 -0.93 1.57 0.73 -1.24 0.28 -0.43 -0.09 0.74 0.30 0.20 1.63 0.11 -5.73 0.54 2.26 -0.04 Indices Volume Volume 4,297,500 1,649,900 4,569,400 3,235,300 6,849,300 2,641,700 11,215,000 4,900,000 9,538,000 1,565,300 6,427,500 2,747,600 2,978,400 12,768,900 1,527,700 12,384,700 2,458,500 4,201,400 12,399,100 Lt Price Change Dow Jones Indus. Avg S&P 500 Index Nasdaq Composite Index S&P/Tsx Composite Index Mexico Bolsa Index Brazil Bovespa Stock Idx Ftse 100 Index Cac 40 Index Dax Index Ibex 35 Tr 17,765.03 2,045.29 4,707.34 14,342.44 42,173.49 48,700.02 6,501.14 4,179.07 9,648.50 9,719.00 -142.84 -16.85 -28.85 -115.28 -228.82 -1,243.28 -68.82 -81.12 -189.11 -396.00 Nikkei 225 Japan Topix Hang Seng Index All Ordinaries Indx Nzx All Index Bse Sensex 30 Index Nse S&P Cnx Nifty Index Straits Times Index Karachi All Share Index Jakarta Composite Index 17,197.73 1,380.58 23,919.95 5,440.12 1,125.10 27,458.38 8,284.50 3,338.44 24,298.23 5,216.67 +30.63 +2.91 +84.42 +80.70 +2.27 +183.67 +49.90 -6.67 +218.95 +4.84 TOKYO Company Name Bridgestone Corp Asahi Glass Co Ltd Nippon Steel & Sumitomo Meta Sumitomo Metal Industries Kobe Steel Ltd Jfe Holdings Inc Sumitomo Metal Mining Co Ltd Sumitomo Electric Industries Smc Corp Komatsu Ltd Kubota Corp Daikin Industries Ltd Hitachi Ltd Toshiba Corp Mitsubishi Electric Corp Nidec Corp Nec Corp Fujitsu Ltd Panasonic Corp Sharp Corp Sony Corp Tdk Corp Keyence Corp Denso Corp Fanuc Corp Rohm Co Ltd Kyocera Corp Murata Manufacturing Co Ltd Nitto Denko Corp Mitsubishi Heavy Industries Nissan Motor Co Ltd Toyota Motor Corp Honda Motor Co Ltd Suzuki Motor Corp Nikon Corp Hoya Corp Canon Inc Ricoh Co Ltd Dai Nippon Printing Co Ltd Nintendo Co Ltd Itochu Corp Marubeni Corp Mitsui & Co Ltd Tokyo Electron Ltd Sumitomo Corp Mitsubishi Corp Aeon Co Ltd Mitsubishi Ufj Financial Gro Resona Holdings Inc Sumitomo Mitsui Trust Holdin Sumitomo Mitsui Financial Gr Bank Of Yokohama Ltd/The Mizuho Financial Group Inc Orix Corp Daiwa Securities Group Inc Nomura Holdings Inc Sompo Japan Nipponkoa Holdin Ms&Ad Insurance Group Holdin Dai-Ichi Life Insurance Tokio Marine Holdings Inc T&D Holdings Inc Mitsui Fudosan Co Ltd Mitsubishi Estate Co Ltd Sumitomo Realty & Developmen East Japan Railway Co West Japan Railway Co Central Japan Railway Co Ana Holdings Inc Nippon Telegraph & Telephone Kddi Corp Ntt Docomo Inc Tokyo Electric Power Co Inc Chubu Electric Power Co Inc Kansai Electric Power Co Inc Tohoku Electric Power Co Inc Kyushu Electric Power Co Inc Tokyo Gas Co Ltd Secom Co Ltd Yamada Denki Co Ltd Fast Retailing Co Ltd Softbank Corp Lt Price 4,245.50 592.00 287.00 0.00 204.00 2,575.00 1,770.50 1,492.50 31,060.00 2,561.50 1,693.50 7,734.00 883.70 488.60 1,414.00 7,935.00 343.00 600.90 1,385.50 261.00 2,599.00 7,270.00 52,470.00 5,385.00 19,375.00 7,480.00 5,361.00 13,375.00 6,804.00 675.20 1,016.00 7,609.00 3,531.50 3,631.50 1,503.00 4,020.00 3,715.50 1,188.00 1,051.00 12,205.00 1,268.50 693.70 1,535.00 8,724.00 1,183.00 2,098.50 1,211.00 632.80 599.20 428.20 4,094.00 637.00 197.50 1,423.50 900.60 648.20 3,025.50 2,877.00 1,730.00 3,947.00 1,387.00 3,139.50 2,395.50 3,974.50 8,879.00 5,579.00 17,640.00 301.30 6,367.00 7,504.00 1,872.00 489.00 1,376.50 1,097.50 1,368.00 1,157.00 633.50 6,662.00 387.00 44,760.00 7,204.00 % Chg 1.42 -0.84 0.00 0.00 -0.49 0.41 0.83 -0.67 0.13 0.27 0.89 -0.96 1.06 -2.14 -0.07 0.85 -0.87 -1.56 -0.11 -0.76 1.33 1.54 0.67 -0.59 0.60 3.89 -0.30 1.87 1.92 0.93 1.30 0.73 1.15 -0.87 -1.25 1.35 0.16 0.38 0.33 0.58 0.79 -0.09 -0.97 1.10 0.17 0.77 -0.78 0.91 1.23 0.05 -1.57 0.17 0.05 1.53 0.18 -1.70 0.97 1.64 -0.09 2.41 0.76 0.34 -0.50 -0.24 -0.24 -0.50 0.66 -0.89 2.63 0.71 5.38 -0.61 0.69 -0.90 0.29 -1.20 0.44 0.18 -0.26 0.80 0.87 Volume 3,402,800 8,370,000 38,275,000 38,143,000 1,925,600 2,913,000 5,027,400 180,400 5,147,700 6,156,000 1,258,200 16,339,000 38,160,000 6,274,000 1,326,400 20,528,000 14,792,000 6,545,400 13,565,000 9,552,200 1,605,400 98,400 2,850,100 1,362,200 1,207,800 1,757,100 894,300 1,696,900 13,847,000 11,763,900 10,425,400 6,251,300 2,759,700 5,093,300 1,148,000 4,534,800 3,801,000 1,645,000 893,800 5,845,300 10,600,100 13,410,300 1,037,200 4,922,500 4,354,700 5,085,100 53,702,100 10,430,800 26,148,000 11,462,000 3,902,000 128,595,500 9,229,300 11,593,000 45,179,400 1,179,700 1,737,900 4,404,800 2,866,400 2,255,000 4,340,000 9,740,000 3,148,000 584,800 503,600 374,100 17,269,000 2,897,100 2,622,700 12,892,600 23,524,200 1,726,300 3,167,900 991,400 2,132,600 6,587,000 1,145,200 6,035,700 1,602,100 8,018,000 SENSEX Company Name Zee Entertainment Enterprise Wipro Ltd Ultratech Cement Ltd Tech Mahindra Ltd Tata Steel Ltd Tata Power Co Ltd Tata Motors Ltd Tata Consultancy Svcs Ltd Sun Pharmaceutical Indus State Bank Of India Sesa Sterlite Ltd Reliance Industries Ltd Punjab National Bank Power Grid Corp Of India Ltd Oil & Natural Gas Corp Ltd Ntpc Ltd Nmdc Ltd Maruti Suzuki India Ltd Mahindra & Mahindra Ltd Lupin Ltd Larsen & Toubro Ltd Kotak Mahindra Bank Ltd Jindal Steel & Power Ltd Itc Ltd Infosys Ltd Indusind Bank Ltd Idfc Ltd Icici Bank Ltd Housing Development Finance Hindustan Unilever Ltd Hindalco Industries Ltd Hero Motocorp Ltd Hdfc Bank Limited Hcl Technologies Ltd Grasim Industries Ltd Gail India Ltd Dr. Reddy’s Laboratories Dlf Ltd Coal India Ltd Cipla Ltd Cairn India Ltd Bharti Airtel Ltd Bharat Petroleum Corp Ltd Bharat Heavy Electricals Bank Of Baroda Bajaj Auto Ltd Axis Bank Ltd Asian Paints Ltd Ambuja Cements Ltd Acc Ltd Lt Price 360.80 553.50 2,729.35 2,680.35 399.65 79.80 522.30 2,512.30 830.05 303.20 207.80 860.30 206.60 138.45 351.00 140.25 135.35 3,468.20 1,238.20 1,420.70 1,500.25 1,360.95 152.85 356.90 2,074.45 802.00 154.00 341.85 1,113.30 864.60 155.00 2,992.25 975.65 1,545.55 3,404.55 435.30 3,163.80 137.85 375.05 632.35 243.00 355.80 679.35 254.75 1,060.45 2,375.85 494.95 812.50 223.80 1,398.50 % Chg -1.02 1.56 0.07 4.43 1.19 -0.25 2.01 2.80 1.37 -0.54 -1.28 2.17 0.02 0.07 2.69 -3.24 -1.60 -0.21 0.05 0.91 -0.65 1.51 -3.20 -1.52 5.12 0.41 -1.66 -1.61 -0.89 5.82 1.61 0.28 1.12 0.73 -0.60 1.06 3.18 -3.43 -1.16 2.29 0.60 -1.48 0.26 -1.09 -1.59 -3.04 -1.39 -0.96 -1.15 0.51 Volume 1,492,336 2,734,369 341,133 815,393 5,777,717 1,847,084 4,355,644 1,695,177 1,879,037 13,027,028 3,191,173 3,572,037 3,473,343 1,305,480 9,885,663 3,403,878 2,825,927 212,724 785,428 352,085 1,303,428 3,374,357 7,576,164 7,630,400 12,344,699 627,584 5,191,779 15,228,074 1,191,998 4,179,156 4,899,359 381,855 2,453,048 1,633,171 53,189 3,210,821 623,655 9,053,910 1,529,571 2,358,025 1,927,493 3,787,604 1,806,078 2,821,232 827,343 276,513 5,596,642 1,895,227 1,338,330 292,496 A view of a screen with Santander’s value at the Madrid Stock Exchange yesterday. Madrid’s Ibex 35 plunged 3.91% to 9,719 points with Santander collapsing on shock news of a €7.5bn ($8.8bn) capital raising. Europe stocks slump on ECB report; Santander hits Madrid AFP London E urope’s equities sank yesterday on disappointment over the reported size of potential bond purchases from the European Central Bank, while Madrid was rocked by giant bank Santander’s massive capital hike. Most European markets gave up at least half of the gains from the day before. London’s FTSE 100 shed 1.05% to close at 6,501.14 points, while Frankfurt’s DAX 30 lost 1.92% to 9,648.50 points and the CAC 40 in Paris dropped 1.90% to 4,178.07. Madrid’s Ibex 35 felt the heaviest losses plunging 3.91% to 9,719 points, with shares in Spanish banking titan Santander collapsing on shock news of a €7.5bn ($8.8bn) capital raising. The second heaviest losses were witnessed in Milan, where the FTSE MIB index fell 3.27% to 18,177 points after shares in troubled bank Monte dei Paschi di Siena plunged more than 8% after having soared the day before on takeover speculation. The euro recovered to $1.1835 in London, after tumbling Thursday to $1.1754 — last seen in December 2005 — on ECB stimulus speculation. ECB staff have presented its governing council with various models for a new asset purchase programme to ward off deflation in the euro area, Bloomberg news agency reported. However, governors took no decision on the design or implementation of any package after the presentation, Bloomberg said, quoting sources who attended the meeting. In Madrid, investors were still shellshocked by the surprise news from Santander, which is the eurozone’s largest bank by market value. Banco Santander’s share price nosedived 14.09% to close at €5.89 yesterday after it unveiled plans the day before to raise the fresh funds. The unexpected move by new Santander HONG KONG HONG KONG Company Name Aluminum Corp Of China Ltd-H Bank Of East Asia Bank Of China Ltd-H Bank Of Communications Co-H Belle International Holdings Boc Hong Kong Holdings Ltd Cathay Pacific Airways Cheung Kong Holdings Ltd China Coal Energy Co-H China Construction Bank-H China Life Insurance Co-H China Merchants Hldgs Intl China Mobile Ltd China Overseas Land & Invest China Petroleum & Chemical-H China Resources Enterprise China Resources Land Ltd China Resources Power Holdin China Shenhua Energy Co-H China Unicom Hong Kong Ltd Citic Ltd Clp Holdings Ltd Cnooc Ltd Cosco Pacific Ltd Esprit Holdings Ltd Fih Mobile Ltd Hang Lung Properties Ltd Hang Seng Bank Ltd Henderson Land Development chairwoman Ana Botin was aimed at dispelling concerns among investors that its п¬Ѓnancial cushion is thinner than those of other big European banks. The shares sale will amount to about 10% of the current market value of the lender. In New York Wall Street stocks traded lower at midday yesterday after a mixed jobs report. The Dow Jones Industrial Average shed 0.67% to 17,787.75, while the broad-based S&P 500 slid 0.55% to 2,050.70 and the tech-rich Nasdaq Composite Index reversed 0.42% to 4,716.18. While the US economy added a solid 252,000 jobs in December and the unemployment rate dropped to 5.6%, hourly wages fell and the labour participation rate dropped. That mixed data is unlikely to shake the US Federal Reserve from its current course of raising interest rates later this year although 2014 turned out to be the best year for job generation in the US in 15 years. Lt Price 4.03 31.00 4.44 6.78 8.95 26.20 17.68 124.80 4.78 6.45 30.45 26.25 95.05 24.50 6.21 16.00 22.05 19.88 22.85 11.20 13.74 66.80 10.62 11.00 9.11 3.75 21.10 127.00 53.25 % Chg -1.71 -0.16 0.23 -0.88 1.47 2.14 2.91 -0.64 -3.82 0.00 1.67 -0.19 1.55 1.45 -0.96 0.25 0.68 -0.50 -1.72 5.26 0.44 1.06 1.53 -1.61 0.55 3.88 -0.94 0.08 0.09 Volume 28,431,394 1,063,689 511,664,499 80,050,917 12,761,200 19,249,005 12,974,031 8,221,788 38,489,136 322,642,380 79,288,585 2,658,431 31,192,151 19,296,046 160,864,522 2,020,705 11,484,683 7,929,360 22,267,668 112,073,944 14,345,246 2,613,399 104,673,569 2,402,426 1,411,264 24,174,519 3,568,467 672,095 3,945,798 Company Name Hong Kong & China Gas Hong Kong Exchanges & Clear Hsbc Holdings Plc Hutchison Whampoa Ltd Ind & Comm Bk Of China-H Li & Fung Ltd Mtr Corp New World Development Petrochina Co Ltd-H Ping An Insurance Group Co-H Power Assets Holdings Ltd Sino Land Co Sun Hung Kai Properties Swire Pacific Ltd-A Tencent Holdings Ltd Wharf Holdings Ltd Lt Price 17.72 177.00 71.10 87.40 5.73 7.33 32.50 9.08 8.81 83.15 75.05 12.42 119.10 99.75 127.20 59.35 % Chg -0.11 -0.45 -0.14 0.92 0.17 0.96 0.78 0.11 0.34 1.53 -0.53 0.65 0.51 0.00 -0.08 1.98 Volume 5,998,209 4,501,116 22,291,858 9,122,856 264,517,207 36,471,144 3,423,905 26,841,086 136,449,914 55,819,102 2,053,864 4,387,029 4,155,061 1,273,716 31,842,127 7,973,041 GCC INDICES Indices Doha Securities Market Saudi Tadawul Kuwait Stocks Exchange Bahrain Stock Exchage Oman Stock Market Abudhabi Stock Market Dubai Financial Market Lt Price 12,305.52 8,284.89 6,491.07 1,425.07 6,253.55 4,478.76 3,674.29 Change +407.34 +151.50 +67.86 -0.09 +49.43 +54.12 +73.96 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended as an offer or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on this data.” CURRENCIES DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI DINAR KUWAITI DINAR 6 Gulf Times Saturday, January 10, 2015 BUSINESS/LEISURE Adam Pooch Cafe Garfield The XL-Catlin deal is the latest in a string of European insurance mergers as the region’s 5,000 underwriters face stricter capital rules. XL set to write nearly a tenth of Lloyd’s business after Catlin deal Reuters London X L Group Plc said it would buy underwriter Catlin Group Ltd for about ВЈ2.79bn ($4.22bn), increasing the Dublin-based insurer’s share of business written in the Lloyd’s of London market to nearly 10%. The deal is the latest in a string of European insurance mergers as the region’s 5,000 underwriters face stricter capital rules. Mergers usually make it easier for companies to cut expenses relative to assets, helping them to raise capital. “We are forecasting that we will, at a minimum, have about $200mn in cost savings across the two organisations when they are combined,” XL chief executive Mike McGavick, who will head XL Catlin, said in an interview. “That’s about 10% of the com- Bound And Gagged Cryptic Clues Sudoku Sudoku is a puzzle based on a 9x9 grid. The grid is also divided into nine (3x3) boxes. You are given a selection of values and to complete the puzzle, you must fill the grid so that every column, every row and every 3x3 box contains the digits 1 to 9 and none is repeated. Weekly’s Solutions ACROSS 1. Two pig stealers will get beaten! (3-3) 4. Makes an outline of a game, we hear (6) 9. Thought I’d no reactions when disturbed (13) 10. Serious enough to resent a change (7) 11. Did it flow divinely from the choir? (5) 12. Two prepare to take the strain (5) 14. Diplomatic representative in a maiden voyage (5) 18. A topless specimen is quite enough (5) 19. The devil of a match (7) 21. A device that has some current attraction (13) 22. Insist upon a lock being put back (6) 23. Although he keeps going, he remains where he is (6) bined expenses of the company,” he added. It is too early to say how many jobs will be cut, he said. Catlin writes about 7.5% of all Lloyd’s premiums, making it the biggest syndicate on the market, while XL accounts for about 2%. The offer of 388 pence in cash and 0.13 new XL share values each Catlin share at about 715.3 pence — a premium of 8.3% to the stock’s close on Thursday. Shares in London-listed Catlin were trading at 708 pence in afternoon business, while XL shares were up 1.6% at $35.99 in early trading on the New York Stock Exchange. Bermuda-based Catlin, which sells insurance for everything from flooding to kidnapping, said it would pay a п¬Ѓnal dividend of 22 pence, reversing a decision made in December to forego the payout after an approach from XL. At the time, XL — which has a market value of more than $9bn — had offered ВЈ2.53bn for Catlin. Stephen Catlin, who founded the company that bears his name in 1984, told Reuters that some of Catlin’s investors had “showed a very clear preference” for the final dividend and to have the amount subtracted from the purchase price. Catlin’s top investors include BlackRock Institutional Trust Co, Cantillon Capital Managem ent and MFS Investment Management. “This bid both highlights the attractions of Lloyd’s for external players and increases the scarcity value for the remaining companies,” Shore Capital analyst Eamonn Flanagan said in a research note. Earlier this week, brokerage Westhouse Securities flagged Novae Group and Lancashire Holdings as the next possible Lloyd’s takeover targets. Quick Clues DOWN 1. Diplomacy, we hear, took a devious course (6) 2. Youthful soothsayers, biblically speaking (5,8) 3. Girl involving one in love entanglement (5) 5. Make a new adjustment for the back row, by the sound of it (7) 6. An imaginative air-trip? (6,2,5) 7. Dispatched with railway guard (6) 8. Before the end of the day, the trial will make you irritable (5) 13. Somehow trace an alternative producer ... (7) 15. ... indispensable for one who is filming (6) 16. This craft will upset the lotteries (5) 17. As a culinary device, it causes some friction (6) 20. Land-line shown on the map (5) ACROSS 1. Leave (6) 4. Bog (6) 9. Warily (13) 10. Bared (7) 11. Embellish (5) 12. Form (5) 14. Demon (5) 18. Go in (5) 19. Release (7) 21. Imprisonment (13) 22. Holds up (6) 23. If not (6) DOWN 1. Determine (6) 2. In brackets (13) 3. Circular (5) 5. Daunt (7) 6. Official (13) 7. Dictum (6) 8. Apart (5) 13. Depict (7) 15. Following (6) 16. Odd (5) 17. Gratitude (6) 20. Memorise (5) Weekly’s Solutions QUICK Across: 1 Inconclusive; 7 Fight; 8 Anger; 9 Lie; 10 Travelled; 11 Indian; 12 Dental; 15 Incessant; 17 Tic; 18 Llama; 19 Image; 21 Imperfection. Down: 1 Intelligible; 2 Nag; 3 Lethal; 4 Statement; 5 Vigil; 6 Predilection; 7 Field; 10 Translate; 13 Title; 14 Tariff; 16 Chasm; 20 Arc. CRYPTIC Across: 1 Preservation; 7 Order; 8 Raise; 9 Mar; 10 Sweetmeat; 11 Unsaid; 12 Abuser; 15 Armistice; 17 Air; 18 Omaha; 19 Issue; 21 Shoe repairer. Down: 1 Perambulator; 2 End; 3 Varlet; 4 Turntable; 5 Opine; 6 Letter-writer; 7 Ogres; 10 Shipshape; 13 Slate; 14 Divine; 16 Meath; 20 Sea. 8 Gulf Times Saturday, January 10, 2015 BUSINESS Spanish fund п¬Ѓrm suffers asset flight after star manager’s exit Cinven hires Rothschild for divestment of truck parts maker Jost Bestinver sees assets slide 30% in 2014, says Lipper; exit of Francisco GarcГa Parames seen as a key factor; Parames in talks to skip non-compete clause, set up new fund; Bestinver says outflows from funds have now normalised Reuters Frankfurt B Reuters London/Madrid O ne of Spain’s leading fund п¬Ѓrms, Bestinver, lost almost a third of its assets in 2014 after star manager Francisco GarcГa Parames left, becoming the latest industry player to fall foul of so-called вЂ�key man’ risk. Parames, who co-ran most of the п¬Ѓrm’s main funds, resigned at the end of September after 25 years with the company and two key managers, ГЃlvaro GuzmГЎn de LГЎzaro and Fernando Bernad, followed him on Monday. Through a spokesman, Parames told Reuters he had left after disagreement over the strategic direction of the п¬Ѓrm, which wanted to broaden its investor base while Parames was keen to focus on core investors with large levels of liquidity. Bestinver also wanted to branch out into п¬Ѓxed income, a letter from its chairman to Parames showed, the spokesman added, a move Parames did not support. Bestinver would not comment on the reasons for Parames’ departure when asked by Reuters. Bestinver, owned by Spanish conglomerate Acciona, saw its managed assets fall to $5.7bn at the end of December, from $8.2bn a year earlier, Lipper data showed, a slide of 30%. The bulk of the outflows for all of Bestinver’s funds occurred from September to the end of December, the data also showed, with the flagship Bestinfond Fl fund losing more than $750mn in assets during September and October. The ability of an exiting manager to trigger a rush for the investor exit has been seen several times in recent months, most notably when Pimco founder Bill Gross left, taking billions of dollars with him to his new company. Javier SГЎenz de Cenzano, director of manager research in Iberia and Italy for Morningstar, said all Bestinver’s products under coverage had been downgraded to вЂ�neutral’ from вЂ�gold’ after Parames left. “We do think ParamГ©s and the other two co-PMs (portfolio managers) had Parames, who co-ran most of the firm’s main funds, resigned at the end of September after 25 years with the company and two key managers, ГЃlvaro GuzmГЎn de LГЎzaro and Fernando Bernad, followed him on Monday. critical importance in the successful track record Bestinver funds generated over a very long time period,” he said. “They were key decision makers in a process where bottom-up fundamental research on stocks was the main driver of returns.” Parames adopted a value based approach to his investment decisions, a style favoured by peers such as Warren Buffett, which tries to spot undervalued stocks hoping they will rise over the mid to long-term. The Bestinfond FI fund gained 65.4% in the п¬Ѓve years to the end of 2014, Lipper data showed, compared with a 31.2% rise in the Euro Stoxx 50 index during that period, with dividends reinvested. The company’s own estimate of the assets that have left its funds, given in an internal presentation seen by Reuters, amount to €2.8bn ($3.3bn) between September 23, the date of Parames’ resignation, and November 30. Bestinver said, however, that much of that was down to institutional investors who had a formal obligation to withdraw funds if management changed. Norges Bank Investment Management was one such investor, Morningstar’s de Cenzano said. Outflows have normalised since the beginning of November, Bestinver said. Lipper estimated that net outflows from all Bestinver’s funds in December were $285mn. Performance in the main Bestinfond, meanwhile, improved slightly after Parames left, showing a gain of 1.2% between end-Sept. and end-December, against a full year performance of 0.7%, the data showed. While Bestinver has hired a number of new staff, including Beltran de la Lastra from JPMorgan Asset Management as chief investment officer, and Ricardo CaГ±ete from Mutuactivos as head of Iberian equities, Morningstar said it remained cautious. “Our overall view is that the п¬Ѓrm has gone through material turmoil and there are signiп¬Ѓcant changes to its culture and investment team. We still have to see to what extent the investment process might change too,” de Cenzano said. The spokeman for Parames said his exit carried with it a two-year noncompete clause which he was currently hoping to have overturned in exchange for around €30mn, to allow him to set up a new venture, possibly in London. Bestinver, however, had yet to respond to the offer, the source added. uyout group Cinven has mandated Rothschild to explore options including a sale or stock market listing of its German truck and trailer parts maker Jost Group, two people familiar with the deal said. Any divestment would prove a positive turn for Cinven, which acquired a majority stake in Jost just weeks before the Lehman insolvency in 2008 and had to agree to a restructuring of Jost’s п¬Ѓnances in 2010 to avoid a looming insolvency. After posting heavy losses at the height of the global economic crisis, Jost currently has earnings before interest, taxes, depreciation, and amortization of roughly €75mn ($88mn), the sources said. If valued at a similar multiple as peers — which trade at an average of 8 times their earnings — Jost may reap a valuation of about €600mn in a potential sale. The process is still at an early stage and may only officially launch in several weeks or months with the outcome completely open, the sources said. Rothschild and Cinven declined to comment, while Jost was not available for comment. In a move to gain a more international footing ahead of any sale or stock market listing, Jost in October bought peer Mercedes-Benz TrailerAxleSystems from car maker Daimler. “The deal increased Jost’s size and may make it more appealing for potential IPO investors,” one of the sources said. Jost, which competes with listed groups like Wabco, SAF Holland and Stabilus, may also appeal to rivals or to other buyout groups, the sources said. “However, truck part makers usually have a pretty regional focus, so I do not expect a large number of strategic players to look at the asset,” an industry source said. Jost struck a deal in 2010 to restructure its п¬Ѓnances, avoiding a looming insolvency and cutting its loan burden through a debt-for-equity swap. Gulf Times Saturday, January 10, 2015 9 BUSINESS Moody’s cuts Tesco rating to non-investment grade Reuters London A Tesco supermarket in north London. The downgrading of Tesco’s debt to вЂ�junk’ status could limit its negotiating power on potential asset sales as Britain’s biggest retailer embarks on the long-awaited recovery plan designed to reverse its sliding fortunes. his п¬Ѓght with the ratings agencies to retain an investment-grade rating. “Borrowing costs will rise, at a time of squeezed operating margins, and Tesco’s negotiating leverage on future business disposals will be much reduced,” he said. Tesco said on Thursday that it had appointed Goldman Sachs to explore options for data-gathering business Dunnhumby, which could include a stock market flotation or a sale. Some analysts say that Tesco may also need to sell or spin off assets in Asia or eastern Europe to raise cash, though Lewis said on Thursday there was no need for a п¬Ѓre sale. He also emphasised that Tesco’s liquidity and funding were “very secure”, noting that one of his п¬Ѓrst moves when he became CEO last September was to establish a 5bn pound credit facility. Stewart said that the company would work hard to regain its investmentgrade status if it were downgraded but it would not set a deadline for doing so. Because many major investors are not allowed to own bonds below investment grade, known as junk bonds, the ratings downgrade could force some to sell their holdings. Moody’s said that Tesco could return to an investment grade rating if its operating performance recovered in the UK, with like-for-like sales increasing and its trading margin improving to at least 3%. The ratings agency said Tesco would also need to continue strengthening its corporate governance and demonstrate a commitment to a conservative п¬Ѓnancial policy, with an adjusted debtto-core earnings ratio of 4.5 times or below. Other agencies have also taken action. S&P warned in December that it may also downgrade Tesco to highyield “junk” status after placing its BBB- rating on credit watch negative. Fitch rates Tesco at BBB- with a negative outlook. Gazprom accused of locking Moncrief out of gas deal Bloomberg Detroit G azprom backed out of a deal with Moncrief Oil International for rights to develop a natural gas п¬Ѓeld in Siberia, sabotaged a joint venture and stole the Texas energy company’s trade secrets, Moncrief’s lawyer told jurors at the start a $1.37bn trial Moncrief, based in Forth Worth, Texas, is arguing the case before a hometown jury after failing in two previous tries elsewhere. The company lost in a German courtroom in 2010 and a separate suit over the same deal was dismissed in a Texas federal court in 2007. “The defendants over here played Reuters Madrid/London S T he downgrading of Tesco’s debt to “junk” status could limit its negotiating power on potential asset sales as Britain’s biggest retailer embarks on the long-awaited recovery plan designed to reverse its sliding fortunes. On Thursday Tesco’s shares had risen as much as 15% in their biggest one-day gain since 1988 after the grocer reported much better-than-feared Christmas trading and new boss Dave Lewis detailed plans to slash costs and sell assets to fund lower prices and recover lost market share. However, the shine was taken off Tesco’s day when, after the stock market closed, ratings agency Moody’s downgraded the company’s debt to non-investment grade, or junk, on expectations that proп¬Ѓts will remain challenged by changes in the British grocery market. The move marks another fall from grace for Britain’s biggest private employer, a staple of British pension funds that was rated A1 by Moody’s in 2008. Tesco is still reeling from an accounting scandal and issued four proп¬Ѓt warnings last year. Shares in Tesco fell up to 2.5% yesterday morning while its bonds largely shrugged off the news, which had been anticipated. “It’s not particularly helpful for Moody’s to downgrade them to junk on the day it looks like they are starting to recover,” Richard Dunbar, investment director at Aberdeen Asset Management told BBC radio. “There were some straws in the wind that would suggest the company is starting to do things right.” Clive Black, retail analyst at Shore Capital, said the time to have downgraded Tesco’s debt would have been 12-18 months ago, “not now, when management is actually doing something about its risk proп¬Ѓle”. Tesco’s debt at the half-year stood at ВЈ7.5bn ($11.4bn), and of its outstanding liabilities, it faces peak repayments in 2016, 2017 and 2019. Independent retail analyst Nick Bubb said that in Tesco’s meeting with analysts on Thursday п¬Ѓnance chief Alan Stewart seemed resigned to losing Santander tumbles after €7.5bn share sale by no rules whatsoever,” Moncrief’s lawyer Michael Anderson told jurors in state court today. Gazprom, Russia’s largest company, “destroyed Moncrief’s work on the venture,” the attorney said. Gazprom also misappropriated trade secrets, according to Moncrief. “This wasn’t a trade secret,” Gazprom lawyer Van Beckwith told jurors. “It was a sales pitch and it was a bad one for Gazprom.” The trial’s location is a concern for Gazprom, Mike Calhoon, a lawyer for the Russian company, told prospective jurors on January 6. Moncrief Oil Chairman Richard Moncrief is a grandson of Monty Moncrief, one of the original Texas wildcatters. Calhoon asked 150 prospective jurors whether they would be predisposed to favour someone from the locally prom- inent Moncrief family over a Russian business. Dozens raised their numbered cards to indicate they would be. A jury of six men and six women was selected yesterday. The trial may take about six weeks. Moncrief should be pursuing its claims in Russia, not the US, Moscowbased Gazprom said. Moncrief sued in the US because Russia is “not a realistic option given the culture of lawlessness that pervades Russian society,” lawyers for the Texas company said in court papers. Moncrief said it obtained its interest in Russia’s Yuzhno- Russkoye Field, also known as the Y-R Field, through a series of agreements with a Gazprom subsidiary in 1997. Gazprom later contracted with the German chemical company BASF SE to develop the п¬Ѓeld. Moncrief contends the initial deal was muddied by corruption in Russia before Vladimir Putin became prime minister in 1999. Putin is the current president of Russia. Gazprom dropped the deal later, after it had seemed to get back on track. Moncrief said it relied on the purported deal with Gazprom to develop a separate joint venture with Occidental Petroleum that would import natural gas and sell it from Texas throughout the US, Occidental agreed to the joint venture in exchange for an option to acquire an interest in the Y-R п¬Ѓeld from Moncrief, according to court papers. Instead, Gazprom met with Occidental, proposing an arrangement that could “bypass any participation by Moncrief,” the lawyers said. Gazprom’s representatives “point- edly closed the meeting by reminding Occidental of its signiп¬Ѓcant Russian assets,” Moncrief lawyers said in the complaint. Occidental pulled out of the joint venture with Moncrief in 2007. Gazprom “destroyed the joint venture,” the lawyers said. Moncrief claims Gazprom misappropriated trade secrets that it obtained in meetings and discussions that followed the Russian company’s 2003 announcement that it planned to sell liqueп¬Ѓed natural gas to the US Gazprom representatives went to Fort Worth, Houston and Boston and took part in talks, which included Moncrief’s study of the US natural gas market and prospects for building a liqueп¬Ѓed natural gas import terminal near Corpus Christi, Texas, according to court papers. hares in Spain’s Santander tumbled more than 10% yesterday after the bank sold €7.5bn ($8.9bn) of new shares at a steep discount, aiming to improve its capital strength and fund growth. The eurozone’s biggest bank announced the quick-fire share sale late on Thursday and sold 1.2bn shares at 6.18 euros apiece, at the bottom of the indicated price range and a 10% discount to its previous share price. The shares were down 10.9% at €6.11 by 0820 GMT after what bankers said was the biggest accelerated bookbuild ever in Europe. Santander’s new chief Ana Botin unveiled the share sale and cut the bank’s dividend to lift its capital strength and fund expansion, the latest sign she is stamping her mark on the bank after taking over from her late father, Emilio, who ran Santander for 28 years until his death last September. Santander denied it needed the capital to fund acquisitions, as in a past route to rapid expansion under Emilio Botin. But the hike still prompted speculation it could look at purchases, with Italy’s Monte dei Paschi and Portugal’s Novo Banco seen as possible targets. Shares in Monte Paschi had jumped 12% yesterday, but pulled back 4% yesterday as the talk cooled and a report said regulators want it to hold more capital. Santander said its core capital ratio (on the basis of the full Basel III rules laid down by global sector regulators) should reach nearly 10% this year and 10 to 11% by 2016. Analysts at brokerage Natixis described the forecasts as cautious, despite its plans to expand lending. “Either the group expects major regulatory changes, or it plans to make acquisitions between now and the end of 2015,” the Natixis analysts said in a note. Some believe other banks could follow suit. Nick Anderson, analyst at Berenberg, said Santander’s move could pressure other European banks to raise capital. Citing an unnamed market source, Spanish newspaper El Conп¬Ѓdencial said pressure from new eurozone bank supervisors had partly pushed Santander to raise the funds, though the Spanish bank has denied it was prodded by the European Central Bank. Capital levels at Santander have long been under scrutiny, but Emilio Botin had resisted calls to improve it by raising cash from shareholders or cutting its dividend. Santander said the cash will be used to п¬Ѓnance grow in key markets including Spain, Brazil, Britain, Poland and the US. “The objective of this transaction is to accelerate our plans to grow organically,” Ana Botin said in a memo to staff. Unglamorous lead is desperately seeking a good story By Andy Home London Lead was the second worst performer among the major industrial metals traded on the London Metal Exchange (LME) last year. It was close but copper, which came under sustained bear attack over the closing weeks of 2014, just pipped it for the booby prize. is now trading consistently below the $1,900-per tonne level, its weakest performance since the third quarter of 2012. It’s also trading at a discount of more than $300 per tonne to “sister metal” zinc, so called because both have historically been produced at the same mines. Trading lead and zinc as a relative value pair is a favoured past-time on the LME “Street” but the gap between the two is now as wide as it’s been since the end of 2008. Lead’s relative under-performance has caused a good deal of head-scratching among analysts. Or at least those analysts who still care, because this market’s real stand-out feature over the last year or so has been collective apathy. LME lead volumes slipped another 0.5% last year after tumbling by 9.4% in 2013. It was the only major LME-traded metal to have experienced two consecutive years of lower trading volumes, something of a stand-out given total volumes grew by 6.7% in 2013 and by another 3.5% in 2014. Even more stark has been the decline in open interest. It has been falling steadily since August last year and is currently grinding along at levels that have defined this market’s apathy low points over the last couple of years. Markets love a good story. And in commodity markets the story tends, as often as not, to come from the supply side. Copper, for example, is currently the bears’ play-thing because of an expected swing to surplus this year as mine and refined supply overwhelm demand growth. Zinc is in favour because of its compelling narrative of closing mines and resulting shift to raw materials deficit. It doesn’t necessarily matter whether the narrative is “true”. What matters is that there is a narrative at all. And lead just doesn’t have one. LME stock movements? Lead stocks have done no more than oscillate gently over the last year, ending December up a marginal 8,000 tonnes. LME spreads? Barring an oh-so-brief flirtation with backwardation in August, the benchmark cash-to-three-months spread has spent most of the last 12 months in benign contango. Everything points to a market that is broadly balanced, a perception reinforced by the most recent forecasts from the International Lead and Zinc Study Group (ILZSG). While the ILZSG is expecting a headline- grabbing 366,000-tonne deficit in zinc this year, its assessment of the lead market is that it will record a deficit of just 23,000 tonnes. Hardly the stuff to get the pulse racing in an 11.5mn tonne global market. China, the driving force of other metal markets, isn’t generating any sparks either. The e-bike story, a regular feature of the lead market in more interesting times past because of its use in vehicle batteries, has disappeared along with slowing e-bike production growth. Moreover, China is no longer importing refined lead anyway. Net trade in the first 11 months of 2014 amounted to 30,000 tonnes of exports. The inference is that the market in China is pretty much balanced too. If the surface of the global lead market is becalmed, might there be a good story lurking in its hidden depths? Possibly, but the problem is that no-one knows. Lead has a higher recycling component than any other base metal and the scrap, or secondary, part of any industrial metal market is a dark and opaque place. Too dark for most LME analysts to see into with any degree of confidence, even in developed economies let along emerging markets such as China. And talking of China and opacity, what goes on in that country’s mining sector is a mystery with few analysts having any confidence in the official production figures. This makes assessing future supply and balance trends very tricky indeed. Stephen Briggs of BNP Paribas is one analyst who does still care about the lead market. And he makes a compelling case that there is a slow-burn bull story at work in lead. Even with expected below-par demand growth over the next couple of years, “we do not believe that lead demand growth can be met by secondary production alone”. “This puts much of the onus to meet demand on the primary sector. Yet at the mining stage, lead is usually only a by-product and one that most firms have long shunned on environmental grounds.” Briggs notes that the big zinc mines due to close this year are all relatively small lead producers but, equally, that the new zinc mines coming on stream to replace them are too. Seven major new mines will produce nearly 600,000 tonnes per year of zinc but only 20,000 tonnes per year of lead. The logical conclusion is that lead, at some future date, is going to experience its own primary raw materials crunch. But there is a big caveat. “We recognise, though, that forecasts of lead mine production are subject to great uncertainty, due to the huge role of the hard-to-track Chinese industry, where output has fully doubled since 2009 to take its market share to 55%.” Andy Home is a Reuters columnist. The opinions expressed are his own. 10 Gulf Times Saturday, January 10, 2015 BUSINESS Top bond managers plan for 2015 energy rebound Bloomberg New York B ond-fund managers in the US that beat their peers last year by bucking Wall Street predictions that interest rates would rise say beaten-down debt of energy companies is attractive for 2015. The plunge in petroleum prices that has caused bonds of energy exploration п¬Ѓrms to tumble more than 60 cents on the dollar has created one the most “exciting opportunities,” said Rick Rieder, BlackRock Inc’s chief investment officer of п¬Ѓxed income and co-manager of its Total Return Bond Fund. “People often paint energy with one brush but these business models are extremely different.” The best bond fund managers of 2014 are taking on more credit risk and snubbing short-term Treasuries along with their bets on energy debt. Bloomberg News spoke with managers with at least $1bn in assets that had the highest risk-adjusted returns through Dec. 15. The gain is calculated by dividing total return by volatility, or the degree of daily price-swing variation, giving a measure of performance per unit of risk. The price of oil has fallen 54% since June, dragging junk-rated energy issues to a 7.4% loss for all of last year, according to the Bank of America Merrill Lynch High Yield Energy Index. The average yield on bonds in the index is 9.6%, compared with 7.02% for all of the junk bonds in the Bank of America Merrill Lynch US High Yield Index. Debt of Samson Resources Co fell the most in the energy gauge, tumbling 56%. The company’s $2.25bn of 9.75% unsecured notes due in п¬Ѓve years trade at 38.5 cents on the dollar to yield 37.7%. Here are some favourite ideas for this year from the top п¬Ѓve managers of 2014: - Ken Taubes, chief investment officer at Pioneer Investment Management in Boston, which earned a risk-adjusted 3.32% in its Pioneer Bond Fund. Purchasing short-term Treasuries makes little sense to Taubes, whose п¬Ѓrm manages $248bn globally, since returns after inflation are negative. Two-year Treasury notes are yielding 0.66 percentage point. Taubes is buying bank bonds since new regulations mandate stronger capital rules, which will improve creditworthiness. “By hook or by crook, whether they like it or not, they’re improving their credit quality,” he said. Bank debt returned 5.24% in 2014 and has rallied 8.3% on an annualised basis since the end of 2008, according to Bank of America Merrill Lynch index data. The extra yield investors demand to hold bank debt rather than similarmaturity government securities shrank to 1.25 percentage points, down from 6.56 percentage points at the end of 2008. - BlackRock’s Rieder and colleague Bob Miller earned 3.2% in their fund in part because of bets that long- er-term U S bonds would rally. After a 29% gain last year, 30-year Treasuries may still have room for appreciation in 2015 even with yields at about 2.6%, according to Rieder. Any interest rate increase by the Federal Reserve is likely to affect short-term securities rather than longer-dated ones, he said. Economists expect the US central bank to raise its benchmark rate in the second quarter for the п¬Ѓrst time since 2006, according to data compiled by Bloomberg. Central banks in Europe and Japan are stimulating their economies at the same time the Fed is tightening its policy, a divergence that will add volatility to markets. “You have to be more flexible in how you look at your portfolio to try and create a more stable equilibrium,” Rieder, who manages $690bn in assets, said. “It’s a really, really big deal.” - Matthew Freund’s USAA Intermediate-Term Bond Fund, which manages $2.1bn, returned 3.13%. The San Antonio-based manager is examining opportunities in the energy sector after avoiding the industry during an issuance spree before the oilprice plunge. Since early 2010, energy producers have raised $550bn in new bonds and loans. Yields on junk-rated energy debt have surged from last year’s low of 5.7%. Spreads on the securities have climbed to 789 basis points, more than double the 2014 low. Buying commercial mortgagebacked securities, which are backed by loans by assets from skyscrapers and shopping malls, and debt linked to aircraft helped performance last year, Freund said. Fixed-rate CMBS yield 2.34%, compared with 1.76% for all kinds of assetbacked securities, according to Bank of America Merrill Lynch index data. Other investors’ aversion to airlines, given their history of failures, makes debt backed by aircraft attractive, since it’s protected in bankruptcy. Big banks park energy sector bonds in US money funds Reuters Boston B ig European and American banks have found a productive place to park the energy sector’s most distressed debt: the $2.7tn US money market industry. Barclays Bank, Credit Suisse and Wells Fargo and others get overnight and short-term loans from companies that run money market mutual funds such as Fidelity Investments, BlackRock, American Beacon and others. The banks use the money to fund long positions in securities or to cover short positions. For collateral, the funds are accepting the junk-rated bonds of beat-up energy companies. Even though the value of the bonds are in free fall as oil prices plummet, the money funds readily accept the debt, because it’s a way to generate abovemarket yields in an industry hurt by near-zero interest rates. In 2014, the average yield for taxable money fund investors was a paltry 0.01%. Banks currently have about $90bn outstanding in short-term and overnight loans backed by riskier assets that include corporate debt and equities. The exact amount of junk-rated energy debt used as collateral was not available. But more than a dozen of the sector’s mostly highly distressed issuers, including QuickSilver Resources, Black Elk Energy, Halcon Resources, Samson Investment and Sidewinder Drilling Inc, have had their bonds used as collateral, according to recent fund disclosures. These so-called “other repurchase agreements” generate above-market yields for the funds, ranging anywhere from 20 basis points to 50 basis points. In contrast, repo loans backed by safe US Treasuries can generate yields of about 10 basis points and less, according to recent fund disclosures. Most money fund assets are in Treasuries, certiп¬Ѓcates of deposit and government agency debt. But some jarring discoveries in the types of collateral money funds accept on shortterm loans to big banks can be found Pedestrians walk past the corporate headquarters of Barclays in London. Barclays Bank, Credit Suisse and Wells Fargo and others get overnight and short-term loans from companies that run money market mutual funds and others. by investors who dig through industry disclosures. A money fund run by Morgan Stanley recently disclosed, for example, an $8.25mn repurchase agreement with Credit Suisse, which used bonds issued by Sidewinder Drilling as most of the collateral. As oil prices have tumbled, so has the value of Sidewinder’s 2019 bonds, falling about 44% since early October. Credit Suisse declined to comment. Money funds downplay the risk in the repo transactions backed by the junk-rated collateral. They say their ul- timate backstop is the bank on the other side of the deal. Fidelity, the largest money fund operator in the industry, declined to comment on any speciп¬Ѓc transaction. In a statement, the company said, “We make an independent assessment on the counter-party credit quality in all repurchase agreements to ensure the counter-party represents minimal credit risk.” By contrast, No 1 US mutual fund company Vanguard Group plays it safe. The $133bn Vanguard Prime Money Market Fund and the company’s other money funds only accept US govern- ment securities as collateral, company spokesman David Hoffman said. “In times of stress, governments are far more liquid than other asset classes,” Hoffman said. “This is especially true with US Treasuries, which are likely to rally during times of stress.” Federal Reserve Bank policymakers say they are worried that some banks rely too much on repo loans as a source of wholesale funding. They also point out how money funds make loans secured by assets they would quickly unload if the bank on the other side of the deal defaulted. “What always worries you about wholesale funding is the run risk,” John Williams, president of the Federal Reserve Bank of San Francisco, told reporters this week at an economic conference in Boston. “... Heavy reliance on wholesale funding, which is still there for certain institutions, is an important issue that we need to address and make sure our п¬Ѓnancial system is resilient to things going wrong.” Despite a host of new regulations for money funds and banks, some of the same elements of risk that led to a redemption run in the money fund industry and the failure of Lehman Brothers in 2008 remain intact. Treasury and Federal Reserve officials say more work needs to be done to address the risks of asset п¬Ѓre sales and redemption runs. A redemption run on the Reserve Primary Fund in 2008 has been a rallying cry for reform after its exposure to Lehman Brothers debt prompted panicked investors to withdraw their money in droves. That run led the fund to “break the buck,” a rare event in the money market fund industry that refers to a fund’s net asset value falling below $1 per share. In recent presentations, Boston Fed President Eric Rosengren has said there should be more disclosure about the composition of the collateral used in repo agreements. He said it would allow investors an opportunity to observe changes in п¬Ѓnancing patterns and might prevent risk taking that investors may consider excessive. And this summer, before oil prices began their descent, bonds issued by Black Elk Energy Offshore Operations were used as collateral in repo agreements with funds run by Fidelity, BlackRock Inc and Goldman Sachs’ investment management arm, fund disclosures show. But in recent months, Black Elk debt maturing later this year is not turning up as collateral in the latest round of money fund disclosures. The yield on its bonds has spiked as high as 75% in the past month, an indication of the bond market’s dimming view the company can avoid default. Freund, chief investment officer for $63bn of mutual funds at USAA, cautioned investors not to use leverage to boost returns. “If you’re an intermediate investor, and you’re way out long or in high yield, get back to home base,” he said. “I would really be in positions where you’re not a forced seller.” - Ken Leech, chief investment ofп¬Ѓcer at Western Asset Management Co, has been adding energy assets slowly, including debt from California Resources Corp, an exploration and production company. The Western Asset Core Plus Bond fund gained 3.02% after the risk adjustment. Leech said he sees value in CMBS, residential-mortgage backed securities and US investment-grade corporate bonds. The extra yield investors demand to hold company debt rather government notes rose last year for the п¬Ѓrst time since 2011 on slower global growth, which reduced returns. Trainline plans LSE listing in Feb Reuters London T rainline, Britain’s biggest online rail booking system and п¬Ѓfth-largest e-commerce platform, said it intended to raise ВЈ75mn ($113mn) through a listing on the London Stock Exchange in February. The п¬Ѓrm’s private equity owners Exponent, Harbourvest Partners and Northwestern Mutual Life Assurance will sell shares in the sale, which is expected to result in 25% of the business being sold, Trainline said. Exponent has an option to sell a 15% stake on top of that. The company is looking at a valuation of over ВЈ500mn ($753.2mn), a source familiar with the matter told Reuters. “We’re excited. We sit at the heart of the rail industry - our passenger numbers are up twofold since the 1990s, as railway continues to take share from road,” said Clare Gilmartin, the company’s chief executive ofп¬Ѓcer. The former eBay executive sees Trainline as a technology business at heart. “Growth in the last few quarters has largely been driven by an acceleration in mobile sales; there’s huge room to grow online and through mobile in the UK,” she said. While Gilmartin was coy on the subject of expanding its service offering beyond rail, she said the company was looking to Europe as its next growth market. It has already entered into deals with Deutsche Bahn and Trenitalia, is in discussions with other national operators and sees potential in expanding cross-border rail routes in Europe. Trainline said that it would use the proceeds from the sale to pay off existing debt and settle bank costs and fees. Adjusted core earnings (EBITDA) across Trainline’s branded businesses grew to ВЈ21mn in 2014, up from ВЈ14.3mn in 2013. Returns on commodity index products disappoint investors By John Kemp London Commodities were the worst performing asset class for the third year running in 2014. Investors, including some of the world’s largest pension funds, have seen billions of dollars of wealth disappear as a result of investing in commodity index products over the last decade. So it is essential to understand what went wrong to help prevent a similar problem recurring in future. “Facts and fantasies about commodity futures,” first published in 2004 by Gary Gorton and Geert Rouwenhorst, proved one of the most influential research papers in 21st century finance. It provided the intellectual underpinning for the investment boom in commodity derivatives which followed over the next eight years until roughly 2012. Gorton and Rouwenhorst concluded “the risk premium on commodity futures is essentially the same as equities” and better than bonds. “In addition to offering high returns, the historical risk of an investment in commodity futures has been relatively low” and “they are an attractive asset class to diversify traditional portfolios of stocks and bonds.” Yet all of those propositions have come under scrutiny as returns on commodity index products have disappointed investors over the last three years and in some cases longer. Several high-profile investors and commodity index fund operators have recently closed down their operations citing returns which failed to match the complexity and risk involved in running the programmes. “Facts and fantasies” was based on an analysis of returns that would have been available to an investor in an equallyweighted index of commodity futures fully collateralised by US Treasury bonds between July 1959 and March 2004 (NBER Working Paper 10595). “Facts and fantasies,” and similar papers written later by others, played a pivotal role popularising investment in commodities and making commodity indices respectable for a much wider group of investors. Previously, commodity investment was the preserve of investors and hedge funds with a high appetite for risk and willingness to endure volatility. “Facts and fantasies” helped convince even conservative investors, such as pension funds, that commodity derivatives, especially indices, were a prudent addition to their portfolios. Commodity derivatives were not just a directional bet on boom-bust but an “asset class” that could be a source of long-term returns across the business cycle. Initially, the performance of commodity indices was in line with the historical research, and even exceeded expectations. Commodity indices soared between early 2002 and July 2008. Hit-hard when the global financial crisis intensified in third quarter of 2008, they staged a moderate comeback in 2009, 2010 and 2011. Since then, however, performance has been consistently disappointing. Between June 2004 and June 2014, the compound annual growth rate (CAGR) for the S&P Goldman Sachs Commodity Index (GSCI) was -1.8%. The Light Energy and Non-Energy versions of the GSCI performed little better, eking out meagre returns of +1% and +2% per year respectively. By Dec 23, however, returns on the GSCI averaged -3.7% per year since the middle of 2004, -1.3% for the Light Energy version, and just +1.2% for the Non-Energy variant. Returns have been poor compared with stocks. The S&P 500 equity index achieved total returns of around +7% per year between June 2004 and June 2014, increasing to about +7.9% by December 2014. In practice, commodity derivatives have exhibited all of the volatility of other asset classes (and often more) but none of the returns. The most widely invested commodity indices were the two families known originally as the GSCI and the Dow Jones AIG index. Both have changed ownership and been rebranded over time and are now controlled by Dow Jones S&P Indices and Bloombeg Indexes respectively. None of the most commonly tracked benchmarks is an exact replica of the equal-weighted basket of commodity futures analysed by Gorton and Rouwenhorst between 1959 and 2004. For all sorts of reasons, not least the small scale of some futures contracts, it is difficult to exactly replicate the “Facts and fantasies” type index as an investable index in the real world. Most index families, but especially the main GSCI, are heavily weighted towards petroleum futures (crude oil, gasoline and distillate fuel oil), which tends to limit their diversification. But the fact most commodity indices have produced similarly disappointing returns since 2004, including variants with a much lighter weighting towards crude oil and refined fuels, suggests index composition and the process for rolling maturing contracts forward on its own cannot explain the poor performance. There is a tendency in the financial services industry to celebrate successful products and try to quickly forget the unsuccessful ones: why dwell on the failures of the past? The basic explanations for the poor performance of the indices can be recounted easily enough. Index returns comprise three components: (1) the spot price of the commodity; (2) the yield from the Treasury securities used as collateral; and (3) the roll return from swapping a position in maturing contracts into longer dated ones. John Kemp is a Reuters market analyst. The views expressed are his own. Gulf Times Saturday, January 10, 2015 11 BUSINESS Sensex climbs; rupee strengthens further Bloomberg Mumbai Pedestrians walk past a share prices board in Tokyo. Japanese stocks closed up 0.18% at 17,197.73 points yesterday. Asia markets mostly up on upbeat Wall Street AFP Tokyo A sian shares mostly climbed for a third straight day yesterday following more advances on Wall Street, while bargain-buying helped oil recover slightly from its latest sell-off. The euro edged up but struggled to make sizeable gains against the dollar, weighed down by expectations the European Central Bank will unleash a vast easing programme at the same time as the US Federal Reserve plots an interest rate hike. Tokyo gave back most of its early gains but ended marginally higher, adding 0.18%, or 30.63 points, to 17,197.73. Seoul surged 1.05%, or 20.05 points, to 1,924.70 and Sydney rose 1.56%, or 84.15 points, to close at 5,465.6. Hong Kong added 0.35%, or 84.42 points, to 23,919.95, but Shanghai slipped 0.24%, or 8.05 points, to 3,285.41. In other markets, Taipei fell 0.24%, or 22.45 points, to 9215.58; Taiwan Semiconductor Manufacturing Co fell 2.9% to Tw$134.0 while smartphone maker HTC rose 1.37% to Tw$148.0. Wellington rose 0.19%, or 10.79 points, to 5,584.84; Fletcher Building was up 1.11% at NZ$8.21 while Meridian Energy eased 1.12% to NZ$1.76. Manila added 0.48%, or 35.09 points, to 7,402.72; Philippine Long Distance Telephone rose 1.86% to 2,954pesos and Metropolitan Bank was up 1.21% at 88.15 pesos. Bangkok closed up 0.51%, or 7.80 points, to 1,529.42; Bank of Ayudhya jumped 11.73% to 50baht, while telecoms company True Corp gained 5.26% to 12baht. Kuala Lumpur gained 0.25%, or 4.38 points, to 1,732.44; industrial conglomerate DRB-Hicom rose 3.14% to end at 1.64 ringgit, while mobile telecom provider Maxis gained 1.47% to close at 6.90 ringgit. The mainland Chinese market swung wildly through the day, at one point adding 3.38% following news that Chinese inflation edged up in December but fell well short of the government’s target for the full year. Conп¬Ѓdence has picked up over the past few days as analysts predict the ECB will launch a huge bond-buying scheme— known as quantitative easing (QE) – to kickstart the eurozone economy. Expectations were fanned when data Wednesday showed consumer prices in the currency bloc had fallen for the п¬Ѓrst time since October 2009, during the depths of the п¬Ѓnancial crisis. A pause in the downward spiral of oil prices also provided some relief after a report showed US stockpiles had fallen last week, fuelling hope that demand is picking up. US benchmark West Texas Intermediate for February delivery edged up 17 cents to п¬Ѓnish at $48.96 a barrel and Brent North Sea crude for February rose one cent to $50.97. Eyes are now on a closely followed US jobs report due later in the day, with forecasts for another sharp rise in new posts, giving the Fed more ammunition to lift interest rates. The release Wednesday of minutes from the bank’s December meeting boosted spirits after it showed policymakers are unlikely to announce a hike until at least April. In New York the Dow surged 1.84%, the S&P 500 jumped 1.79% and the Nasdaq gained 1.84%. And markets in Frankfurt, Paris and Milan closed up more than 3%. “When it comes to US economic reports there’s nothing more important to the Fed than labour market numbers,” said Kathy Lien of BK Asset Management. “The December employment report is scheduled for release on Friday and the big question is whether the strength in November carried into December.” On currency markets the euro, which slipped below $1.18 Thursday for the п¬Ѓrst time since 2009, bought $1.1806 yesterday, compared with $1.1795 in New York Thursday afternoon. It also fetched ВҐ140.94 against ВҐ141.15. The dollar was at ВҐ119.39 yesterday, compared with ВҐ119.65 in US trade. In China the government said inflation came in at 1.5% in December, in line with forecasts and up from the п¬Ѓve-year low of 1.4% the previous month. However, for the full year 2014, consumer inflation was 2.0%, down from 2.6% in 2013 and well below the government’s target of about 3.5%. The soft inflation п¬Ѓgures are the latest showing a slowdown in the world’s number two economy, with manufacturing, trade and investment all weak. Gold fetched $1,211.42 an ounce, compared with $1,206.35 on Thursday. Indian stocks rose for a second day, paring a weekly loss, as the nation’s second-largest software exporter reported profit that beat estimates and global stocks rallied. Infosys rallied the most in three months after the company maintained its annual sales forecast. The stock now has the highest weighting on the S&P BSE Sensex, up from a third place yesterday. Hindustan Unilever climbed to a record, while drugmakers Dr Reddy’s Laboratories and Cipla were among the best performers on the benchmark index. The Sensex gained 0.7% to 27,458.38 at the close, paring the weekly loss to 1.5%. Net income at Infosys rose 13% to Rs32.5bn ($521mn) in the December quarter, exceeding the Rs31.6bn median of 29 analysts’ estimates in a Bloomberg survey. The Bengaluru-based company kept its forecast for full-year sales to rise 7% to 9% in US dollar terms. “Spending on technology has improved dramatically, and the guidance given by Infosys is conservative,” Trip Chowdhry, a US-based analyst at Global Equities Research, said in an interview to Bloomberg TV India yesterday. “Infosys can easily meet or beat the top-end of its guidance.” Profits at 67% of the 30 Sensex companies beat or matched analyst estimates in the September quarter, versus 46% in the three months ended June and 60% in March, data compiled by Bloomberg show. Earnings are likely to rise 27% over the next year, versus 11% for companies on the MSCI Emerging Markets Index, the data show. Infosys jumped 5.1%, the steepest climb since October 10. The stock had lost as much as 3.1% today before the results. Tata Consultancy Services increased 2.8%, the most since December 16. The companies were among the best performers on the Sensex yesterday. Hindustan Unilever soared 5.8%, taking this week’s rally to 14%, the most since the week ending May 5, 2013. Brokerages including JPMorgan Chase & Co, Credit Suisse Group, Kotak Securities and IIFL Holdings have raised their ratings on the stock this week. “The fast-moving consumer goods pack is being rerated and Hindustan Unilever is the benchmark of the sector,” said Harsh Mehta, an analyst at Beware the market maxim вЂ�the trend is your friend’ Reuters London The old financial market maxim “the trend is your friend” has rarely been more appropriate than when applied to the recent falls in oil, government bond yields and the euro, which have been nothing short of dramatic. But investors enjoying the ride should make sure their seatbelts are fastened: while the trend may well have further to run over the longer term, the risk of sudden reversals is growing by the day. A look at how equities have performed over the last two years shows that the S&P 500 has risen some 40% on its way to a series of record highs. But there have been 10 swings lower of between 4 and 10% in that time. Since oil started tumbling in the middle of last year, however, there’s been barely a single noteworthy snap back of 5% or more. The fall has been precipitous and relentless. The picture for the euro and bonds is similar. But the pullbacks and spikes in volatility that have characterized stock market movements are bound to hit oil, bonds and the euro in time. “These market moves have very little to do with fundamentals, and could create opportunity,” said Valentijn Nieuwenhuijzen at ING Investment Management. A significant, if unquantifiable, factor behind the rapid acceleration in market momentum recently is automated trading. Momentum funds and algorithm computer models are playing a bigger part in financial markets now than ever before. Central to the swings across all financial assets is oil. Slowing demand growth and (more pertinently) plentiful supply as producers refuse to cut output pushed Brent crude futures below $50 a barrel this week for the first time since 2009. That marks a 55% decline in six months, and a 40% brokerage HDFC Securities. “There may also be some flight to safety that’s benefiting the stock.” Dr Reddy’s jumped 3.2%, the most since November 7, and Cipla gained 2.3%, the steepest advance since December 18. The Sensex rallied 30% in 2014, the most among the world’s 20 biggest markets after China. Foreigners bought $16bn of stocks on expectations economic growth will rebound after Prime Minister Narendra Modi won the biggest electoral mandate in three decades in May. Global investors sold a net $62mn of local shares on January 8. The Sensex is valued at 15.2 times projected 12-month profits, compared with the MSCI Emerging Markets Index’s multiple of 11.2, data compiled by Bloomberg show. Meanwhile the rupee completed its biggest weekly gain since May on optimism demand for emerging-market assets will be sustained amid the prospect of further euroarea stimulus. European Central Bank President Mario Draghi said this week that policy makers may undertake measures including buying sovereign bonds to spur growth. Minutes of the Federal Reserve’s December meeting released January 8 showed the US is unlikely to raise interest rates before late April. Global funds bought a record $26.4bn of Indian debt in 2014, while pouring about $16bn into the nation’s stocks, exchange data show. The rupee climbed 1.6% from January 2 to close at 62.3250 a dollar in Mumbai, the biggest weekly gain since May 16, prices from local banks compiled by Bloomberg show. The currency rose 0.6% today and is Asia’s best performer this week. Indian sovereign bonds completed a second weekly advance. “Strong inflows continue to lend support to the rupee,” said Paresh Nayar, head of currency and money markets at FirstRand in Mumbai. “India looks relatively attractive when you see other major world economies slowing.” The Reserve Bank of India forecasts the $1.9tn economy, Asia’s third-largest, to grow 5.5% in the year ending March 2015, compared with 4.7% last year.Three-month offshore non-deliverable forwards for the rupee rose 1.6% this week and 0.7% today to 63.27 a dollar, data compiled by Bloomberg show. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars. Indonesia raises $4bn in dollar bonds Reuters Jakarta I fall in the last two months alone. Moves of such magnitude over relatively short periods are often evidence that prices have overshot. The oil market is no stranger to longer term price swings, however. As Reuters Breakingviews columnist Edward Hadas points out, since 2000 the daily price has been on average 18% higher or lower than six months earlier. If the fall in oil has been eye-catching, the move in bond markets has been historic. The benchmark cost of 10-year government borrowing reached record lows this week in Japan, Germany, France, the Netherlands, Austria, Belgium, Finland, Canada and Australia. The average 10-year yield in the G3 economic powerhouses of the US, eurozone and Japan fell below 1% - the lowest on record, according to Steven Englander, global head of currency strategy at Citi. By this measure, investors are pricing in a world economy that is in a worse state now than it was in the Great Depression of the 1930s or during the global financial crash of 2007-09. Is that really the case? If the answer is no, there is a growing risk that massive one-way bets on oil, sovereign bonds and the euro could be vulnerable to a violent reversal, especially as central banks are almost out of ammunition in their fight against deflation and sub-par growth. “What are they going to do for an encore?” asked Citi’s Englander. Like most people in currency markets, he expects the euro to remain under pressure. It hit a nine-year low of $1.1753 this week, a whisker off its January 1999 launch rate of $1.1747. Englander and Nieuwenhuijzen share the broad market consensus view that corrections and bouts of volatility will not translate into longer-term trend reversals. The longerterm investment strategy, therefore, would be to sit tight. Investors with a shorter term horizon, however, would do well to protect themselves against prospective turbulence. For example, even if you still believe oil prices are headed lower, you could hedge that view by buying shares in commodityrelated companies which are likely to benefit from continued strength in broader equity indices. ndonesia has raised $4bn in a US dollar bond issue, taking advantage of the current low-yield environment and improving sentiment about the country and policies its new president is pursuing. The yield is at 4.200% for $2bn of 10-year notes and 5.200% for $2bn 30-year notes. This compares with a yield of 5.950% for 10-year notes and 6.850% for 30-year notes for similar sized tranches Indonesia issued one year ago. With the improved terms on the new bonds, “Indonesia has to fork out a lower percentage than in a tough market,” said Wellian Wiranto, an economist at Singapore’s OCBC bank. Demand for the new bonds was strong. Bankers said this led Indonesia to increase its total size to $4bn rather than $3bn. The Finance Ministry said yesterday the bonds drew bids for $19.3bn, the largest-ever combined order book for Indonesian sovereign bonds. Finance Minister Bambang Brodjonegoro said Indonesia may issue more debt in the global market this year. Scenaider Siahaan, a director at Indonesia’s debt management office, said the country plans to issue global sukuk and samurai bonds in the п¬Ѓrst quarter as the yield is currently favourable. Saturday, January 10, 2015 BUSINESS GULF TIMES QSE WEEKLY REVIEW Dividend announcements help sway market to close positive By Santhosh V Perumal Business Reporter Gyrations in the oil market took the Qatar Stock Exchange through a rollercoaster path and it closed positive, albeit at lower levels, the only one bourse in the Gulf region to do so during the first week of 2015. While Qatar’s main 20-stock index was 0.16% up, Dubai shrank 2.64%, Muscat (1.57%), Saudi Arabia (1.48%), Abu Dhabi (1.11%), Kuwait (0.68%) and Bahrain (0.11%) during the week that, however, saw losers outnumber gainers. Micro and large cap equities largely instilled the bullish momentum to the local bourse during the week that saw Industries Qatar (IQ), Gulf International Services (GIS) and Mesaieed Petrochemical Holding (MPHC) announce dividend for 2014, ahead of their corporate results. The dividend announcements helped sway the market to positive; barring that there are no other positive indicators at present to suggest a sustained bullish trajectory, an analyst with a brokerage house said. The current troughs in the oil price may act as a dampener in the sentiments in the stock markets and there are no signs of strengthening energy prices in the short to medium term, he said. Crude oil prices have corrected by over 50% from their highs in 2014 owing to excess supply, driven by higher US shale oil output and a fall in demand because of slowdown in many major economies. Domestic institutions’ buoyant net buying largely supported the bourse during the week that saw the oil price plunge to a five-and-a-half year low of below $50 a barrel, forcing the 20-stock Qatar Share Index to touch a low of 11,812 points on Tuesday but only to gain for the next two days. Buying interests in the consumer goods and industrials outweighed the selling pressure, notably in the insurance and telecom counters during the week that saw Qatar Insurance Company (QIC) establish a Malta subsidiary to further strengthen its European operations. The industrials and insurance stocks gained 1.84% and 1.82% respectively; while telecom shrank 4.8%, insurance (4%), transport (0.91%), realty (0.09%) and banks and financial services (0.05%) during the week that saw Barwa fully acquire Lusail Golf Development. The index that tracks Shariah-principled stocks was seen gaining faster than the other indices during the week that saw real estate, industrials and banks together account for more than 81% of the total trade volume. The 20-stock Total Return Index was up 0.16%, All Share Index (comprising wider constituents) by 0.01% and Al Rayan Islamic Index by 0.71% during the week. Of the 43 stocks, only 16 gained, while 25 declined and two were unchanged during the week. Four each of the 12 banks and financial services and the eight consumer goods; five of the nine industrials and three of the four realty stocks close higher during the week. Major movers included IQ, GIS, Qatar Islamic Bank, Barwa and Mazaya Qatar; even as Islamic Holding Group, Vodafone Qatar, QIC, Qatari Investors Group, Doha Bank, Aamal Company, MPHC, Ezdan and Nakilat were seen bucking the trend. Market capitalisation was up 0.16% or QR65mn to QR677.44bn during the week. Micro and large cap equities gained 0.99% and 0.48%; whereas mid and small caps fell 1.24% and 0.04% respectively during the week. Domestic institutions were net buyers to the tune of QR320.27mn; while their foreign counterparts were net sellers to the extent of QR212.27mn. While local retail investors net sold QR113.74mn worth stocks; non-Qatari individuals were net buyers to the tune of QR5.99mn. A total of 58.05mn shares valued at QR2.49bn changed hands across 35,422 transactions. The real estate sector saw a total of 24.63mn equities worth QR709.35mn change hands across 8,739 deals. As many as 12.63mn industrials stocks valued at QR674.87mn trade across 10,067 transactions. The banks and financial sector witnessed as many as 9.85mn shares worth QR696.19mn change hands across 9,028 transactions. The telecom sector saw 5.52mn equities valued at QR150.33mn trade in 3,636 deals. The market saw a total of 1.79mn consumer goods stocks worth QR121.06mn change hands across 2,289 transactions. The transport segment recorded 2.94mn shares valued at QR98.96mn trade in 1,069 deals. The insurance saw a total of 0.69mn shares worth QR43.58mn trade across 594 transactions. The debt market witnessed a total of 5,000 treasury bills valued at QR49.8mn change hands across mere one deal; while there was no trading of government bonds during the week. US payrolls rise solidly, jobless rate drops, but so do wages Nonfarm payrolls increase 252,000 in December; unemployment rate falls to 5.6% from 5.8%; average hourly earnings fall 5Вў; workweek steady Reuters Washington U S job growth increased briskly in December and the jobless rate dropped to a 6-1/2 year low, but wages slipped in the latest sign a tightening labour market has yet to give much of a boost to workers. Nonfarm payrolls increased 252,000 last month after an upwardly revised 353,000 jump in November, the Labor Department said yesterday. The unemployment rate fell 0.2 percentage point to 5.6%, partly because people left the labour force. But a п¬Ѓve cent drop in average hourly earnings, which nearly erased gains seen in November, took some shine off the otherwise mostly upbeat report. Over the past year, earnings rose only 1.7%, the weakest 12-month showing since October 2012. Economists said the data buttressed the case for the Federal Reserve to take a go-slow approach to raising interest rates. “We are once again looking at a situation where people are getting hired but we are not seeing the wage increases the Fed would like to see,” said Kate Warne, investment strategist at Edwards Jones in St. Louis. “That keeps the Fed on hold.” US stocks opened flat before turning lower, while prices for US debt rose as traders pushed back their expectations for when the US central bank would raise rates. Some economists said the data should keep the Fed, which has kept overnight borrowing costs near zero since December 2008, on track for a rate hike around mid-year. Futures markets continued to point to a rate increase in September, although chances policymakers would move later rose. “This is probably a good enough Canada loses jobs for second month in a row, housing cools Reuters Ottawa Canada’s job market continued to gently cool off in December, shedding 4,300 positions after a loss of 10,700 jobs in November, while the hot housing market showed signs of decline. Statistics Canada said yesterday that the unemployment rate had remained unchanged at 6.6%. Market analysts had expected an increase of 15,000 jobs. The two months of fairly small declines followed big gains in September and October. Full-time employment in December grew by 53,500 jobs, while part-time work dropped by 57,700. “Full-time employment was quite strong, wages bounced back, and the unemployment rate held steady,” said Doug Porter, chief economist at BMO Capital Markets. “So, while the headline number is a disappointment, you don’t have to dig too far beneath the surface to see the overall results weren’t uniformly bad,” he told Reuters. The 12-month gain came to 185,700 positions, an increase of 1.0%, while the six-month moving average for employment growth was 22,100 jobs, up from 21,300 in November. The Bank of Canada, which has kept interest rates at near-record lows for more than four years to stimulate the economy, said last month the labour market still showed significant slack. “It will argue for the Bank just to remain on the sidelines, continuing to monitor data,” said Paul Ferley, assistant chief economist at the Royal Bank of Canada. The labour participation rate, which is of particular interest to the central bank, slipped to 65.9%, the lowest since October 2001. number to allow the Fed to stay on course in terms of adjusting policy,” said Peter Cecchini, managing director and chief market strategist at Cantor Fitzgerald in New York. December marked the 11th straight month of payroll increases above 200,000, the longest stretch since 1994. For last year as a whole, the economy generated 2.95mn new jobs, the strongest showing for any year since The Canadian dollar retreated to its weakest level in more than 5-1/2 years following yesterday’s data, which included a government report from the US showing the economy there added 252,000 jobs in December. The Canadian dollar hit $1.1887 against the greenback, or 84.13 US cents, sharply weaker than just before the release. Canadian policy makers are also concerned about the hot property market, which is starting to cool. 1999. Overall, the data suggested the economy was positioned for solid growth this year, despite troubling weakness in some economies overseas. Adding to the report’s generally strong tenor, a total of 50,000 more jobs were created in October and November than previously thought. Economists were struck by the weakness in wages given the tighten- Housing starts fell more than expected in December and November figures were revised lower. The Canada Mortgage and Housing Corp said the seasonally adjusted annualised rate of housing starts fell to 180,560 units in December from 193,199 in November. Analysts had forecast 193,500 starts. Separately, Statscan said the value of Canadian building permits plummeted by 13.8% in November to C$6.58bn ($5.58bn) on widespread weakness, the second large drop in four months. ing jobs market. The unemployment rate dropped by more than a percentage point last year, and is now near territory Fed officials consider commensurate with full employment. The drop in wages in December was widespread across industries, but most acute in the mining and logging sector. Christoph Balz, an economist at Commerzbank, said soft earnings were a hangover from the 2007-2009 reces- sion. “Firms (were) unable to reduce wages during the recession, and they must now work off a stockpile of pentup wage cuts.” Even so, economists expect to see a spark soon as the labour market continues to tighten. “The wage story should look much better at the end of 2015,” said Dan Greenhaus, chief strategist at BTIG in New York. E&P spending in N America could drop 30% or more, says Barclays Reuters New York O il and gas companies could cut spending on exploration and production (E&P) in North America by 30% or more this year if US crude oil prices continue to trade in the $50-$60 per barrel range, Barclays said. Brent crude futures were at $50.50 yesterday, while US crude futures were at $48.57 — both at п¬Ѓve-year lows, having more than halved since June due to oversupply and tepid demand growth. Spending in North America will fall 14.1%, while international spending will fall 6.7%, Barclays said, noting companies’ budgets had assumed Brent at about $70 per barrel and US crude at $65. That would mean spending across the globe would fall about 9% to $619.43bn this year, Barclays estimated on the basis of a survey of 225 oil and gas companies. Given the continued fall in oil prices, spending could “trend even lower”, with North America being hit the hardest, Barclays said on Thursday in a report titled “Global 2015 E&P Spending Outlook”. Several US companies have already announced much smaller budgets for this year and some are even reducing the number of rigs they use as drilling in several shale п¬Ѓelds proves to be uneconomic at current prices. The US onshore rig count is expected to fall by 500 rigs over the year to about 1,250 rigs by the end of 2015, according to Barclays. The bank said the Middle East will be the lone source of strength globally, with spending expected to rise 14.5% as companies stick with their drilling plans assuming the oil downturn will be of a much shorter duration than in the past. Detroit auto show revs up amid вЂ�perfect’ industry conditions AFP Detroit A surging economy, more jobs and cheap gas: the US auto industry will celebrate a confluence of near-perfect conditions as it unveils its latest wheels in the annual Detroit car show next week. After racking up the best year in sales since 2006, the last year before the п¬Ѓnancial crisis hit, automakers will put out for display some 40 new car and truck models, hoping to seduce buyers to make 2015 even better. The cars will be more powerful and decked out with ever-more high-tech bells and whistles that are making them safer than ever, while pushing slowly toward the day of the hands-free automobile. Rolling onto the red carpet in Detroit will be Cadillac’s most powerful car ever, the new 640 horsepower CTSV; Lexus’s GS F performance sedan; a brand-new version of the legendary Acura NSX; and possibly the next-generation Ford supercar. Pickup fans will be wowed with the all-new Nissan Titan and Toyota Tacoma trucks. The struggling green-car sector will also have badly needed fresh offerings in the form of a redesigned GM Volt, and Hyundai’s hybrid and plug-in Sonatas. The show, the premier auto exposition in the US, will also see the return of Chinese makers, absent for several years after self-imposed exile, with Guangzhou Auto presenting a new car — which will not be sold in the US. The impressive array going on display underscores how the American consumer is enjoying the richest, most diverse range of choices from the Detroit “Big 3” — General Motors, Ford and Chrysler, now renamed FCA US — and European and Asian producers. With gas prices at their lowest in six years, interest rates rock-bottom, and the US economy and household worth growing steadily, “we’re almost in a perfect storm,” said Joe Vitale, industry analyst at consultant Deloitte. “When you look at all those factors, one it’s a good time to be a consumer, two there’s liquidity out there for the purchase of vehicles, three there’s aging of the vehicle population. “All these things make it very desirable for the auto industry over the coming year.” The North American International Automobile Show — to give it its full name — expects a million visitors to descend on bone-chilling Detroit between January 17 and 25. Some 20 manufacturers will compete for the spotlight in a US market that has been a bright spot in a world where other economies are struggling to grow. The industry is coming off a year of sales of at least 16.5mn cars and trucks in the US, up 5.9% from 2013, according to Autodata, an industry consultant. General Motors led the pack with sales of 2.94mn units; Ford was second at 2.48mn, Toyota close behind with 2.37mn, and FCA US, the former American Chrysler marque now owned by Italy’s Fiat, selling 2.09mn cars and trucks. GM chief executive Mary Barra predicted on Thursday that sales in 2015 could reach a buoyant 17mn vehicles, a level last seen in 2001. “The US economy and vehicle sales have been rebounding since 2009 and we believe there is still plenty of room for the auto industry to grow,” she said. But for all the expected razzmatazz, the show does not open under absolutely clear skies. After a record year of recalls in the US, some 60mn cars in total, many for life-threatening defects, automakers will be under pressure to demonstrate a greater commitment to car quality and consumer safety. GM is especially under the gun, having been shown at the beginning of 2014 to have known about a faulty ignition for more than a decade before taking action. At least 42 people died in crashes tied to that problem and the company is facing criminal investigation even as it pays out millions of dollars to settle claims. The other cloud over the industry is the receding demand for energy-saving vehicles as gasoline prices sink. Sales growth overall has been heaviest in the pickup truck and sports utility vehicle segments, while sagging for electrics and hybrids. Demand for such vehicles “has been somewhat disappointing for the auto companies,” said Martin Zimmerman, a former economist at Ford and now professor at Michigan University. With the companies under regulatory pressure to reduce the fuel consumption averages of their fleets, the lackadaisical demand for electrics poses a problem for them, according to Zimmerman. Both automakers and regulators “are going to have to come to terms with these lower oil prices,” he said. General Motors CEO Mary Barra holds a media briefing before the start of GM’s annual shareholders meeting in Detroit, in this file photo taken on June 10, 2014. Barra, meeting with reporters on Thursday, said growth in the US auto market will flatten out this year, although a strong economy and falling gasoline prices should sustain demand. NBA | Page 8 CRICKET | Page 6 Rockets send Knicks to 14th straight loss Smith trumps Bradman to fuel run chase Saturday, January 10, 2015 Rabia I 19, 1436 AH SPOTLIGHT GULF TIMES Prince Ali's FIFA bid doomed, say Asian chiefs SPORT Page 4 RALLYING Nasser stretches Dakar lead Agency Antofagasta, Chile Qatar's Nasser Saleh al-Attiyah in action in the Dakar rally on Thursday. Q atar’s Nasser al-Attiyah completed another day in the lead as the Dakar Rally continued to push participants to the limit. This is the fourth straight day that the Qatari driver has held the lead, through an extremely wide variety of road and weather conditions on each occasion. The deп¬Ѓning characteristic of Thursday’s 458-kilometre stage in Chile was the abundance of fesh-fesh: п¬Ѓne powdery sand that can easily cause cars to become bogged down. Because of that, both navigation and driving skill is paramount to avoid falling into yet another of the insidious traps that the Dakar regularly lays for its competitors. As he won the stage on Wednesday, Nasser was п¬Ѓrst on the road today and co-driver Matthieu Baumel was on top of his game to guide the duo over the featureless terrain of the Atacama Desert. But having started the day with a lead of more than eight minutes, Nasser knew that there was no need to push to the maximum today, meaning that he could look at the bigger picture and manage his pace. He ended the stage fourth, three and half minutes behind the stage winner, but actually stretched his overall lead to more than 10 minutes over Giniel De Villiers, who dropped time on the stage. “The stage was really hard – not easy – with a lot of fesh-fesh,” said the Qatari, who also happens to be an Olympic medallist at skeet shooting. “In the last 10 kilometres we got a flat tyre, so then we changed the wheel, it only took us 1m35s which is quite fast. I’m quite happy to п¬Ѓnish the day with just one puncture and without any trouble with the car. I’m glad I did not win the stage, because tomorrow will be very difficult and I would like someone else other than Matthieu and myself to open the road.” During the next stage competitors make their way up the Paciп¬Ѓc coast towards Iquique, with spectacular views over the ocean. Not that the drivers will have time to admire it, as they will be tackling a 186-kilometre stage, consisting mainly of fast gravel tracks. For the п¬Ѓrst time, the location hosting the halfway point in the rally will mark the arrival of the crews with a podium ceremony in the city centre. Nasser is beginning to think about the second half of the event. “I need to think a lot next week because we also have the marathon stage,” he concluded. “I don’t know what it will be like, but we are going day by day. Our plan is to win the race: we are leading and we’ll just try to keep going like this.” Meanwhile, Russian driver Vladimir Vasilyev maintained defending champions Mini’s monopoly of the Dakar Rally, the manufacturer making it п¬Ѓve stage wins in п¬Ѓve on the shores of the Paciп¬Ѓc Ocean. But Carlos Sainz, the 2010 champion, retired from the race after rolling and destroying his troubled Peugeot. Vasilyev clinched the 458km run from Chile’s Atacama desert, the driest place on earth, to the coastal stop of Antofagasta. The Toyota of Saudi Arabia’s Yazeed Alrajhi was second on the stage—just 20 seconds behind—to remain third in the overall standings. The Hummer of America’s Robbie Gordon was third on the day. Mini’s Qatari driver Nasser al-Attiyah, the 2011 champion and overall leader, was fourth Thursday with 11-time champion Stephane Peterhansel in a Peugeot a place further back. For the п¬Ѓrst time in the 2015 race, South Africa’s 2009 champion Giniel de Villiers failed to п¬Ѓnish on the podium. However, the Toyota driver, sixth on the day, remains second overall. 2 Gulf Times Saturday, January 10, 2015 ASIAN CUP SPOTLIGHT IN AGREEMENT Australia crush Kuwait 4-1 in their Asian Cup opener вЂ�It was the right kind of reaction and eventually we overwhelmed them. The positives outweigh the negatives tonight and this will give us confidence for the next games’ Maaloul: Australia deserved the win Kuwait’s football coach Nabil Maaloul. AFC Melbourne C oach Nabil Maaloul conceded Australia fully deserved yesterday’s 4-1 win in the opening game of the AFC Asian Cup Australia 2015 despite seeing Kuwait take a surprise early lead at Melbourne Rectangular Stadium. An eighth minute header from Hussain Fadhel had handed Kuwait the lead in front of a sold out crowd in the Group A opener as the defender capitalised on slack Australia marking at a corner. But with Tim Cahill and Massimo Luongo turning the tie in favour of the home side before half-time, second half goals from Mile Jedinak and James Troisi earned Australia all three points despite the best efforts of Kuwait. “The match was difficult as we expected. Australia are very strong and better than our team physically, and with their speed, they are faster than our team. They deserved to win this match,” said Tunisian coach Maaloul, who was only appointed last month. “The physical п¬Ѓtness of the Australia team helped stop our team, especially our forwards. “We asked our players to press Australia in the second half, but the third goal which was scored from a penalty made our players go back and affected our performance negatively.” Kuwait will hope for improvements ahead of Tuesday’s meeting with Korea Republic. “There is a big difference between Australia and Kuwait especially in physical п¬Ѓtness and the readiness of Kuwait in terms of tactical and physical aspects. The forward players were not ready due to injury and the new players lacked experience and could not do what is required,” added Maaloul. “The injured players were not ready. Two important players, Bader al-Mutawa and Yousef Naser, were not ready and we hope they can come back in the future and play for more than they did in this match.” To further add to Maaloul’s woes, goalscorer Fadhel was forced off just before the hour mark with an apparent ankle injury, with Khaled al-Qahtani also a doubt to face Korea after being forced off with just over 15 minutes remaining. “It is very difficult to have the players who are injured very quickly get back to the tournament,” said Maaloul. “Maybe it is very difficult to prepare Hussain Fadhel to play the next match and maybe alQahtani could be replaced by Fahad Awad who was suspended for this match.” North Korea defend picking suspended player Australia’s Massimo Luongo (right) celebrates his goal with teammate Tim Cahill during their Asian Cup Group A match against Kuwait at Rectangular stadium in Melbourne. AFP Melbourne A ustralia displayed impressive п¬Ѓrepower to beat Kuwait 4-1 in their Asian Cup opener yesterday after talisman Tim Cahill kick-started the tournament hosts following an early scare. Massimo Luongo, Mile Jedinak and James Troisi were also on target for the Socceroos, who could have scored six or seven and were serenaded with a chorus of “Oles” by a sell-out crowd of 30,000 in Melbourne. Kuwait had stunned Australia with a goal from Hussain Fadhel after just eight minutes, the big defender stooping to head in a corner and silence the home fans. But Cahill relieved the tension on a wet and chilly evening by slamming home the equaliser in the 33rd minute after smart work down the right from Luongo. The 35-year-old has now scored at each of the last three Asian Cups. Luongo put Australia in front moments before half-time with a superb header to give the home side a huge boost going into the break. Skipper Jedinak stroked home a penalty in the 62nd minute, giving the Socceroos a two-goal cushion as they continued to press, playing with a swagger that was sorely missing as they managed just a single win in 11 matches last year. Troisi poked home a fourth in stoppage time to cap a dominant performance. “Obviously we got off to a disappointing start,” Australia coach Ange Postecoglou told reporters. “Sometimes things don’t go to plan but it’s how you react. “It was the right kind of reaction and eventually we overwhelmed them. The positives outweigh the negatives tonight and this will give us conп¬Ѓdence for the next games.” Australia, runners-up to Japan four years ago, are also drawn alongside Oman and 2002 World Cup semi-п¬Ѓnalists South Korea in Group A as they bid to capture a п¬Ѓrst Asian Cup with a revamped side after their golden generation failed to win a major title. CAHILL MENACE Cahill almost grabbed a second, forcing a superb save from Hameed Youssef on the hour-mark, before Mathew Leckie smashed a left-foot shot against the underside of the bar as the floodgates threatened to open. “Tim is still a fantastic player,” Postecoglou gushed after Cahill, who has scored nine of Australia’s last 16 goals, once again demonstrated his importance to the green the gold. “We saw at the World Cup he’s still very dangerous against the world’s best defences. There wouldn’t be a defender in the world today who would like to be one-on-one with Tim Cahill.” The former Everton forward, who has now scored 38 times in 78 internationals, added: “It’s always special. I always talk to the boys about taking the opportunities and savoring them. I’m 35 but I feel great. When you play for your country, you’ve got to give it everything.” Substitute Nathan Burns also rattled the crossbar with a diving header as the Socceroos turned on the style against the 1980 champions Kuwait, who had beaten them in п¬Ѓve of their previous 10 meetings. Kuwait coach Nabil Maaloul, who has been in the job just three weeks, was philosophical in defeat. “Let’s face facts: there’s a big difference between the level of the Australian team and Kuwait,” he said. “When we scored the early goal I was the only person on my bench not expressing my joy because I knew Australia had the quality to score at any time—and they proved it. Their third goal, the penalty, killed us.” NORTH KOREA defended their selection of a suspended player and dodged questioning about their coach’s one-year ban yesterday as they prepared to open their Asian Cup campaign against Uzbekistan. At a press conference, North Korean translator replied “What do you mean?” to a query about suspended coach Yun Jong-Su, before the question was given the red card by the moderator. The Asian Football Confederation (AFC) banned Yun for a year over his angry rant following North Korea’s narrow loss to South Korea in the Asian Games final in October. North Korea’s squad is missing South Korean-based star striker Jong Tae-Se but includes Ri Sang-Chol, who will miss all three Group B games through suspension. Caretaker coach Jo Tong-Sop said Jong was injured, and added Ri would benefit from the trip despite not playing—and would be fresh if North Korea qualify for the knock-outs. “He’s a good player. He cannot participate in the three matches in the group stage, I know that very well,” said Jo. “This will be a very good chance for him to learn how fair play is important for a player. And if he has a good rest he can be used in the next stage of the Asian Cup.” North Korea face a difficult first outing today against Uzbekistan, the 2011 semi-finalists who were one win away from a World Cup play-off last year. The team from the isolated communist state have not played a friendly since November but Jo said he preferred to work on team unity rather than warm-up matches. “Rather than playing a lot of friendly matches, I concentrated on uniting our team and preparing our team,” he said. BOTTOMLINE Qatar team’s preparations hit fever pitch By Our Correspondent Canberra, Australia Q atar squad headed by coach Djamel Belmadi on Thursday underwent a two-hour morning and evening training sessions, just two days ahead of their opening Asian Cup match. Having landed in Canberra on December 28, 2014, Qatar squad is preparing for their opening clash against the UAE on January 11. Belmadi’s French assistant coach Sergio Romano was also present during the morning and evening stints, QFA officials said on Thursday. The QFA football delegation later met with AFC officials in a routine gesture prior to the start of the event on January 9. The meeting was held to facilitate Qatar players getting their official portraits taken for the event website. Meanwhile, Qatar’s influential striker Khalfan Ibrahim is touted as the team’s main players, according to player assessments on the AFC website and in sections of the Australian media. Ibrahim was the goal-scorer during Qatar’s 1-0 win over Australia in October friendly in Doha. Qatar’s best performance at the Asian Cup has been a couple of quarter-п¬Ѓnals berths in previous editions. Qatar national team during one of their training sessions in Canberra, Australia. PICTURES: Fadi al-Assaad Gulf Times Saturday, January 10, 2015 3 ASIAN CUP SPOTLIGHT FOCUS For Palestinians, the Asian Cup is more than a game вЂ�Our goal is to let the world know that Palestinian national team is moving forward, despite the difficulties facing us. Palestinian players have the right to play and develop’ Uzbekistan looking to hit back from World Cup disappointment DPA Sydney U zbekistan came within a goal of qualifying for the 2014 World Cup but with that disappointment behind them they hope to make a strong start to the Asian Cup with an opening victory over North Korea in Sydney today. “It was very hard for us because we couldn’t qualify and Uzbekistan always play to win,” coach Mirdjalal Kasimov said yesterday of the World Cup heartbreak. “But life is continuing and at this tournament we try to be at the top level.” Uzbekistan tied with South Korea for second place in the п¬Ѓnal qualifying group for 2014 but lost out on an automatic spot for Brazil on goal difference. Instead they faced a play-off with Jordan to progress into another play-off but lost out after a marathon penalty-shoot out. Chasing the World Cup dream hindered Asian Cup qualifying which began with a draw and a defeat from the п¬Ѓrst two matches before a strong п¬Ѓnale guaranteed their tickets to Australia. And they face North Korea in their п¬Ѓrst Group B game looking for three points. “It is the п¬Ѓrst game and it will be a tough game,” Kasimov said. “There can be some pressure. But if we win this game it will help us for the next game.” After the collapse of the Soviet Union, Uzbekistan п¬Ѓelded an independent team for the п¬Ѓrst time in 1992. But it took several years to п¬Ѓnd a rhythm with quarterп¬Ѓnal appearances in the Asian Cups of 2004 and 2007. In the last edition in 2011 the team secured an impressive fourth-place п¬Ѓnish, even if the competition ended with a disappointingly heavy semi-п¬Ѓnal defeat to Australia and a loss to South Korea in the third-place play-off. With China and Saudi Arabia the other teams in the group, Uzbekistan will expect to progress to the knock-out phase without too many problems. Midп¬Ѓelder Timur Kapadze said that while the team had ambitions to make an impact, surviving the group was the immediate focus. “Uzbekistan is not taking part in such a big tournament for the п¬Ѓrst time, we want to achieve more,” he said. “Of course we do our best to play our best football but our п¬Ѓrst aim is to qualify from the group stage. We’re thinking only about that.” The Uzbeks will look to 32-year-old midп¬Ѓelder Server Djeparov for leadership on the pitch in his fourth Asian Cup but coach Kasimov predicts a bright future due to the youth coming through the ranks. “We have many talented young players in our team and all Uzbezk dootball. You can see it in different competitions (at youth level),” he said. “I believe in future we will be one of the best, top teams in Asia.” The next step to becoming one of the best begins today in Sydney. The coach joked Australia was a long way to travel but was otherwise happy with the buildup to the tournament. “Australia has hosted us well and we have every condition to prepare,” he said. “The climate is good here, it is football weather and we prepare for the games.” AIMING HIGH This file photo shows Palestinians celebrating in the West Bank city of Ramallah after Palestine qualified for their maiden Asian Cup appearance. (AFP) AFP Ramallah, Palestine F rom the West Bank to the Gaza Strip, Palestinians are pinning both sporting and political aspirations on their national football team as it prepares for its Asian Cup debut in Australia. For many Palestinians, sporting prowess is just as important as political and diplomatic moves to achieve statehood with the national team viewed as a part of the national “resistance” - dubbed “AlFidaee” after the militants who fought Israel in the decades after its establishment in 1948. “Sport is still an important weapon in politics,” said Palestinian president Mahmud Abbas as he greeted the 23-man squad at a ceremony to mark their departure for the tournament. The Palestinians have made some inroads towards achieving statehood, winning the rank of observer state at the United Nations in 2012, but have struggled to gain full membership. FIFA, however, recognised the Palestine national team in 1998. Following a diplomatic blow last month when the UN Security Council rejected a Palestinian-drafted resolution seeking to set an end date for the Israeli occupation, all eyes are now on Al-Fidaee. The team, ranked 115th in the world, will kick off its Asia Cup campaign against Japan on January 12 after qualifying for the п¬Ѓrst time. Placed in Group D, Palestine will also play Jordan and Iraq over the coming fortnight. “This is a historic occasion for us as it is our п¬Ѓrst Asian Cup,” striker Ashraf al-Fawaghra told the FIFA.com website. “Our goal is to let the world know that the Palestinian national team are moving forward, despite the difficulties facing us. We want to convey the message that the Palestinian players have the right to play and develop,” the 28-year-old said. “We want to bring a smile back to the faces of our people and make our fans happy.” Palestinian players face difficulties in getting to and from tournaments both at home and away due to tight Israeli restrictions on movement, and some have been arrested or imprisoned. An international under-17s tourna- ment hosted by the Palestinians in 2013 was delayed after Israel refused to grant entry visas to some Arab players, and the competition went ahead only after pressure from FIFA and UEFA. Some Palestinian players have even been killed, including Gaza football legend Ahed Zaqqut, 49, who died during a deadly 50-day war between Israel and Hamas militants last year. For Palestinian Football Association chief Jibril Rajub, a leader within Abbas’s Fatah party, the beautiful game has a unique status for Palestinians. “For the rest of the world it’s just sport—cups, medals, and so on. But in Palestine, it’s part of the project for liberation, a political project,” he told AFP. “The Palestine team, which is playing against the biggest teams in Asia has—despite the occupation, the blockade (on Gaza), and pressure and repression by Israel -- attracted the attention of the media and the international community,” he said. Using football terminology to further the Palestinian cause, Rajub has regularly urged FIFA to show Israel the “red card”—suspend its membership—over the difficulties the occupation poses to Palestinian sport. For him and for many others, the raising of Palestinian flags at stadiums across Australia will be a sweet sight after Australia - which is hosting the Asian Cup - was one of only two countries in the 15-member UN Security Council to vote against the resolution. The other was the United States, Israel’s closest ally. Palestine, which won last year’s AFC Challenge Cup, was named best national team in 2014 by the Asian Football Confederation. Its 23-man squad reflects the disparate nature of the stateless Palestinian people—six players play professionally abroad, six come from the Gaza Strip, three are from the Palestinian diaspora and three are Arab-Israelis. A fourth Arab-Israeli—descendents of some 160,000 Palestinians that stayed in Israel after the Jewish state was established—was selected to play but was unable to join the squad for fear he would have lost his teaching job in Israel. For now, tensions with Israel will remain far from the pitch because teams from the Jewish state only play in European tournaments. BOTTOMLINE We have to be ambitious, says Oman coach Paul Le Guen AFP Canberra O man’s French coach Paul Le Guen (right) said he was in shock over this week’s Paris massacre as he paused to remember the victims ahead of the Asian Cup yesterday. Le Guen used his official press conference to pay tribute to the 12 people killed in an Islamist attack on satirical weekly newspaper Charlie Hebdo. Speaking ahead of Oman’s Asian Cup opener against South Korea, the ex-Lyon boss sent his condolences to the families grieving in France. “My thoughts are with the families in France who were involved in this drama. We feel very sad, we are in a state of shock about what happened,” Today’s fixtures Group A South Korea v Oman Group B Uzbekistan v North Korea Saudi Arabia v China said Le Guen yesterday. Le Guen, who played 17 times for France, said he was focused on Saturday’s match at Canberra Stadium but wanted “to send a message to his compatriots at this difficult time”. Lowly Oman are ranked 93 in the world and face a difficult mission to progress from Group A, consisting of hosts Australia, South Korea and underdogs Kuwait. But Le Guen, who led Lyon to three consecutive French Ligue 1 titles, insisted his team were not at the 16-country tournament just to make up the numbers. “We know the histories of South Korea and Australia but we have to be ambitious,” he said. “Australia and South Korea are the favourites (to qualify for the knockout stages) but we are here to create trouble and a surprise. “We’re not just here to participate and be kind to everybody.” Oman’s most likely route to the knock-out stages would be by defeating Kuwait and grabbing draws with both the hosts and the Koreans. “If you say I have a draw against Australia and South Korea then give me the paper and I will sign it now!” Le Guen joked. But he added seriously: “Maybe we can do it. If we play our way and are not afraid in a big stadium with a great atmosphere.” China’s Zheng hoping for a bright future China’s head coach Alain Perrin (left) of France and captain Zheng Zhi attend a news conference before their training session in Brisbane. Agencies Brisbane C hina hope to use the AFC Asian Cup Australia 2015 as a springboard to leap out of the “dark days” and into a brighter future, captain Zheng Zhi said yesterday ahead of his team’s п¬Ѓrst game in Group B against Saudi Arabia. “As you know after the World Cup, Chinese football suffered some dark years but I think after the year we had, the team has started heading in the right direction,” said Zheng, who will be playing in his third Asian Cup. “That goes for our youth football and our league, in which some clubs played in the Champions League so we have had some achievement. The Chinese team can win some things in future international competitions so this is a good opportunity yes, a very good opportunity. “As a football player, to win the Asian Cup is a dream. The Asian Cup is the top tournament in Asia; everybody dreams to win the Asian Cup.” The AFC Champions League winner with Guangzhou Evergrande will be skippering a young side coached by Frenchman Alan Perrin, who is entrusted with the task of guiding two-time п¬Ѓnalists China out of the group phase after п¬Ѓrst-round elimination in 2007 and 2011. China lost the 2004 п¬Ѓnal to Japan on home soil. Perrin likened the pressure being cooked up to what he felt at some of the top competitions in Europe. “The Asian Cup is the best “I already feel the atmosphere. After one month in China and Austria, we are ready for this tournament. It’s an important match for both China and the Saudi Arabia team. They are a very strong team and they did well at the Gulf Cup. They have good teamwork and their captain is a famous player” tournament in Asia,” the former Lyon and Portsmouth boss said. “The pressure I have here is like what it was in the French Cup and the Champions League in Europe.” “I already feel the atmosphere. After one month in China and Austria, we are ready for this tournament. It’s an important match for both China and the Saudi Arabia team. They are a very strong team and they did well at the Gulf Cup. They have good teamwork and their captain is a famous player. “I feel a lot of pressure but we can handle it.” The manager, nevertheless, did give the Saudis the edge in terms of physical condition with the three-time champions in the middle of their season and coming off a runners-up п¬Ѓnish at the Gulf Cup behind Qatar, while the Chinese Super League runs from March until November. “I think the Saudi players are in better form because they are in mid-season and had the Gulf Cup to build on,” he said. “My players are tired after a long season and some have just п¬Ѓnished their vacation. On this point, they have the advantage.” 4 Gulf Times Saturday, January 10, 2015 FOOTBALL SPOTLIGHT ANALYSIS Prince Ali’s FIFA bid doomed, say Asia sports chiefs вЂ�We made it clear where Asia is heading in the next FIFA election and 46 countries have committed to Sepp Blatter to take a fifth term—so nothing has changed’ FIFA vice-president Prince Ali bin al-Hussein of Jordon (centre) arrives for the Asian Football Confederation (AFC) Extraordinary Congress meeting in Melbourne. AFP Singapore A sia’s top sports leaders yesterday refused to back Prince Ali bin alHussein’s election challenge to FIFA president Sepp Blatter and insisted it was doomed to failure. Asian Football Confederation (AFC) chief Shaikh Salman bin Ebrahim alKhalifah told AFP there would be no about-turn on the regional body’s previous commitment to back Blatter. He said all 46 AFC member associations were behind the controversial 78-yearold’s re-election, despite Jordanian royal Prince Ali’s status as an AFC vice president. “We made it clear where Asia is heading in the next FIFA election and the 46 countries have committed to Joseph Sepp Blatter to take a п¬Ѓfth term—so nothing has changed,” Shaikh Salman said after an AFC extraordinary congress in Melbourne, before the start of the Asian Cup. “We never change our commitment.” Shaikh Salman added that he had been stunned to hear of Prince Ali’s decision, announced this earlier week, to stand against Blatter in the May 29 FIFA election. “I was surprised to see it in the press,” he said. “If there is a candidate from Asia, Asia has to push for it. It’s not the way around that somebody can nominate themselves without consulting the Asian confederation. At the end of the day, you will need the backing of the confederation.” Prince Ali, 39, a FIFA vice president and head of the West Asian Football Federation, was one of several officials who called for the publication of ethics investigator Michael Garcia’s report into allegations of corruption surrounding the 2018 and 2022 World Cup bids. His appearance in Melbourne triggered a sudden media crush, although he declined to give any comment. Blatter has become a deeply controversial п¬Ѓgure following a series of scandals including over the bidding process for 2018 and 2022, won by Russia and Qatar respectively. Prince Ali, who has vowed to repair FIFA’s tarnished reputation, is a close ally of Blatter rival and UEFA president Michel Platini, meaning he can count on a signiп¬Ѓcant number of the European body’s 54 votes. Speaking to Swiss daily Le Matin, Blatter responded to the challenge by saying: “I can only rejoice in this candidacy. We’re a democracy, and this can only be good for the debate.” He added: “Don’t they say that victory without peril is a triumph without glory?” Olympic Council of Asia (OCA) boss Sheikh Ahmad al-Fahad al-Sabah warned that Prince Ali risked upsetting the unity of member nations across the region. He predicted Prince Ali would struggle to win “10 to 15 percent of the votes” and suggested he reconsider entering the race. “I hope Prince Ali or any other candidate will think a thousand times before making his calculation,” the powerful Kuwaiti said in Melbourne. “He has the right to continue, but we wish to show our solidarity in the football family—and solidarity is needed more than ever in this organisation during (a time of) the Garcia п¬Ѓle and stories of corruption.” Sheikh Ahmad added: “I hope he will recalculate to think what would be a realistic analysis (of the situation) and take the right resolution.” However, Japan’s football chief took a more circumspect view. “We have not made a decision on whether to support Prince Ali or support Blatter,” Japan Football Association president Kuniya Daini told AFP. “Prince Ali has very clear ideas but of course it depends if the Asian members back him. Japan belongs to the East Asian Football Federation and we hope to decide with our partners what direction to follow after we meet with them next month. We haven’t decided anything unilaterally.” Chelsea’s head coach Jose Mourinho. Reuters London I f Chelsea manager Jose Mourinho is asked where it all went wrong at the end of the season rather than patted on the back for steering Chelsea to the title, he might point to their trip to Newcastle United in December. The now managerless north east club head to Stamford Bridge for the return п¬Ѓxture today, but there has been a noticeable shift in the mood at the Premier League leaders in the month since they suffered their п¬Ѓrst defeat of the season at St James’ Park on Dec. 6. Before that match, Chelsea were undefeated in 23 matches in all competitions since April’s Champions League semi-п¬Ѓnal against Atletico Madrid and were six points clear at the top of the table. The talk was of whether they would emulate Arsenal’s вЂ�Invincibles’ and go through the whole season unbeaten. Not anymore. They have now lost two, including the Newcastle defeat, and drawn one of the last six league games and while the wheels have not come off their title charge, the relentless momentum of their early season form has been halted. They are still at the summit of the Premier League, but are ahead of champions Manchester City only by virtue of the alphabet, while a draw to Southampton and defeat to Tottenham Hotspur in their last two games has made the need to rebound at home to Newcastle all the more acute. Their success in the early part of the season was built on the foundation of a rock solid defence with the pieces on the Chelsea chessboard expertly manoeuvred by master tactician Mourinho. Yet both the back four and their trustee steward are currently under scrutiny. The defence that conceded just 11 in the 14 games up until the Newcastle defeat were bullied in a 5-3 defeat against Tottenham on New Year’s Day, when stalwart John Terry looked all of his 34 years against the Premier League’s marksman-of-themoment Harry Kane. There are, however, some faint rumblings among Chelsea fans that perhaps Mourinho deserves some of the blame for that debacle in failing to make the most of one of the most well-stocked squads in world football. Terry, his defensive partner Gary Cahill and fullback Branislav Ivanovic started all four league games in a congested 11-day Christmas period, while Cesar Azpilicueta began three of those matches. The contrast in Chelsea’s form in recent weeks, compared with the start of the season, is reflected in their manager’s demeanour. At the start of the campaign, everything Mourinho did gave the impression of a man in total control, steering every detail of his club’s title challenge just as he had in the pomp of his п¬Ѓrst spell in charge. Yet a less relaxed Mourinho has emerged in recent weeks, seeking to shift blame away from his team amid conspiratorial suggestions that a campaign is being waged against his side. Previously feted as a master of the art of deflecting attention and lifting pressure from his team, his consistent jibes against officials have only added to the impression that control is slipping through his п¬Ѓngers. An FA misconduct charge on Thursday was followed by Mourinho deciding to skip the following day’s news conference, choosing instead to let assistant Steve Holland answer questions on his behalf. There is, no doubt, pressure in being the most highly-prized manager in world football that comes from having to live up to past achievements as well as his reputation as one of the game’s great personalities. Yet it will not be long before his recent record gets called into question. If he fails to win the title this season he would have won only one league crown in п¬Ѓve seasons at Chelsea and Real Madrid, two of the richest clubs on the planet. For the self-proclaimed Special One that would be a distinctly ordinary record in comparison to his seven previous complete seasons at Inter Milan, Chelsea and Porto when he won six league titles and two Champions Leagues. CLARIFICATION Lampard clears up вЂ�lies and nonsense’ AFP London BOTTOMLINE Chelsea cool down Messi talk AFP London C helsea assistant manager Steve Holland yesterday distanced the Premier League giants from a move for Barcelona’s Argentina star Lionel Messi (right). The Stamford Bridge club have been linked with an approach for Messi whose future in Spain has been thrown into doubt because of a breakdown in relations with Barca coach Luis Enrique. The four-times world player of the year has a ВЈ200 million ($302mn) buy-out clause in his contract with the La Liga club. But his wage demands mean that any move for the player would require a total outlay of around ВЈ500 million ($756mn). Chelsea are one of the few clubs believed to have the resources to fund a deal of that size, but Holland believes Financial Fair Play regulations would prohibit a move. Blues and Mourinho looking for answers And Holland insists Blues manager Jose Mourinho has no intention of making changes to his playing squad during the current transfer window. Mourinho did not attend yesterday’s routine press conference after being charged with misconduct by the Football Association. And Holland said: “With Financial Fair Play, many players have been sold to balance the books. That has been the case in the last 12 months. “But when you see the numbers that have been mentioned around the Messi deal I would think it looks impossible under Financial Fair Play.” He added: “I think he has made it clear in this window nobody leaves, nobody goes. “I recall he said a similar thing at this time last year and a few things happened that meant we had to be reactive. Manchester United made a huge offer for Juan Mata and there was an offer for Kevin De Bruyne. “Jose was happy to keep them. But sometimes you have to react. But the hope and expectation is that nobody comes or leaves.” Mourinho will take charge of his side against Newcastle this weekend, 48 hours after being hit with a FA misconduct charge for comments he made in the wake of his side’s draw at Southampton. The Chelsea manager condemned referee Anthony Taylor’s display after midп¬Ѓelder Cesc Fabregas was booked for diving when television replays showed the player was fouled inside the Southampton penalty area. That was the latest in a succession of controversial decisions to affect Mourinho’s side. And while Holland insists the manager remains unaffected by the charge, he insisted Mourinho’s frustration was shared throughout the club. Holland said: “Jose’s been п¬Ѓne today. He’s very focused on the game against Newcastle. We lost away to Newcastle only very recently. We are very determined to put that right. “There is a frustration with all of us, the coaching staff and the players, not just Jose with an accumulation of events which surfaced at the Southampton game with Cesc. “We are all together in this. But we have to move on.” The draw at Southampton was followed by a 5-3 defeat at Tottenham Hotspur, allowing Manchester City to draw level at the head of the EPL table. And Holland admitted that the intensity of the title race meant tensions were rising. He added: “At the halfway mark the difference between success and failure is so small. In a game like Southampton where clearly a penalty should have been given and you assume you would go on to win the game and get two extra points that could prove to be vital. So when managers speak straight after the game there is a frustration. Small margins deп¬Ѓne success or failure.” F rank Lampard yesterday moved to clear up “lies and nonsense” over his move to New York City FC, conп¬Ѓrming he will move to the States after completing his loan deal with Manchester City. Lampard issued a statement which said he does have an agreement in place with Major League Soccer side New York and will move there at season’s end. “I want to make it completely clear about my situation as I have read a lot of lies and nonsense over the last few days,” the statement said. “When released from Chelsea last year at the end of my contract I signed a commitment to play for NYCFC for two years starting January 1, 2015. I was then offered the chance to train and be part of the Man City squad in the interim to keep myself in the best shape going into New York. “This period has since been extended by Man City and I will now start playing for NYCFC at the end of this current Premier League season. “There has always been a constant dialogue between all parties in this time to п¬Ѓnd the best solution for everyone. I can say that I am very excited about ar- City’s Frank Lampard. riving in New York and giving everything to the team to make us a success in the MLS as soon as possible. “Thanks everyone for your ongoing support and I wish everyone a healthy and happy 2015!” Lampard’s assertion that his New York City contract was originally due to start on January 1 may add further confusion as, when the MLS franchise originally announced his signing in July 2014, they said on their website: “New York City FC signs Frank Lampard to a Designated Player contract ... a two-year contract which starts August 1 (2014).” Manchester City and New York City, both part of the City Football Group, have been criticised on both sides of the Atlantic for their handling of the situation. Gulf Times Saturday, January 10, 2015 5 FOOTBALL PREVIEW/ LA LIGA FOCUS Atletico aim to inflict more pain on Barcelona The unrest at the Camp Nou kicked into overdrive on Monday 63-goal Ronaldo confident of retaining Ballon d’Or award DPA Madrid C ristiano Ronaldo, never short on self-conп¬Ѓdence, is fairly sure of retaining the FIFA Ballon d’Or award on Monday, after a memorable 2014 in which he scored 63 goals for Real Madrid and Portugal in all competitions. His rivals for the coveted award are old adversary Lionel Messi of Barcelona and Argentina - the winner in 2010, 2011 and 2012 - and Germany and Bayern Munich goalkeeper Manuel Neuer. Ronaldo, who is 30 in February, has not said much about the award recently. However, he did raise eyebrows a few months ago by saying: “In my head, I think I am the best player in the world.” Statements over the years - in 2011 he infamously said “some people jeer me because I am rich, handsome and a great player” have led to Ronaldo being considered arrogant in some quarters. The fact that he is the п¬Ѓrst player ever to have a museum dedicated to himself, on his home island of Madeira complete with a massive statue,- has conп¬Ѓrmed this negative impression for many people. Not that Ronaldo is very wor- ried about his critics, after a remarkable year in which he guided Real to four major trophies: the Champions League, the UEFA Super Cup, the Club World Cup and the Spanish cup. Ronaldo’s goals record in these triumphs was nothing short of astonishing. He banged in 17 goals in the Champions League, then scored both goals in Real’s 2-0 defeat of Sevilla for the UEFA Super Cup in August. He was top scorer in La Liga last season with 31 goals, and is currently way ahead atop the scorers’ chart with 26, a tally which puts him on course to beat Messi’s record of 50 goals in 2012. However, Ronaldo’s critics point to the fact that he again failed to shine on the most important stage of all: the World Cup п¬Ѓnals. He scored only one goal at the tournament, the same as in 2010, and failed to guide Portugal beyond the п¬Ѓrst round, while Messi’s Argentina reached the п¬Ѓnal and Neuer’s Germany won the trophy. Nonetheless, 2014 was an excellent year for him, and this is why he is considered favourite to win the Ballon d’Or in Zurich on Monday. “Not everybody likes Ronaldo, it has to be said,” commented Radio Marca recently. Atletico Madrid players celebrate their victory at the end of their Spanish Copa del Rey round of 16 first leg match against Real Madrid on Wednesday. AFP Madrid B FIXTURES (All times Qatar) arcelona’s new year has had anything but a happy start and things could get even worse tomorrow as the crisis-hit Catalan giants host in-form Atletico Madrid side at the Camp Nou. A shock 1-0 defeat to Real Sociedad last weekend after coach Luis Enrique had relegated nearly 300 million euros of talent, including Lionel Messi and Neymar, to the bench left Barca tied with Atletico one point adrift of leaders Real Madrid, who also have a game in hand their title rivals. The unrest at the Camp Nou kicked into overdrive on Monday when sporting director Andoni Zubizarreta was sacked, his assistant and club legend Carles Puyol resigned and Messi then missed an open training session with the club’s fans. The Argentine sparked transfer rumours by then following Chelsea on the social networking site Instagram, whilst reports emerged that his relationship with Enrique is at breaking point. Today: Real Madrid v Espanyol (6pm), Malaga v Villarreal (8pm), Celta Vigo v Valencia (10pm). Tomorrow: Almeria v Sevilla (2pm), Athletic Bilbao v Elche (7pm), Granada v Real Sociedad (9pm), Barcelona v Atletico Madrid (11pm) Monday Rayo Vallecano v Cordoba (9.45pm) On Wednesday, club president Josep Maria Bartomeu called early elections for the end of the season in response to the increasing pressure on his position, whilst insisting that Messi, who signed a contract until 2018 as recently as May, would remain in the Catalan capital. Given the circumstances Atletico are probably the last opponents that Enrique’s men would like the face this weekend as they bound into Barcelona on a wave of enthusiasm created by Fernando Torres’s return to the club and a third win over Real Madrid this season on Wednesday. Before seeing their rivals do battle, Real Madrid can move four points clear at the top when they welcome Espanyol to the Santiago Bernabeu today Torres contributed little in his п¬Ѓrst appearance for Los Rojiblancos in over seven years, but did taste victory over Real for the п¬Ѓrst time as an Atletico player thanks to second-half goals from Raul Garcia and Jose Maria Gimenez. The result was even more impressive as Atletico boss Diego Simeone had made seven changes to his side and Torres is expected to start on the bench as Mario Mandzukic, Koke, Arda Turan, Juanfran and Miguel Angel Moya return to the starting line-up. Before seeing their rivals do battle, Real Madrid can move four points clear at the top when they welcome Espanyol to the Santiago Bernabeu today. Carlo Ancelotti’s men have also had a far from ideal start to the year with backto-back defeats to Valencia and Atletico coming after a 22-game winning run to end 2014. “I think to call it a crisis is a bit exag- gerated, but it is clear that we are not happy,” Ancelotti said after defeat at the Vicente Calderon in midweek. “We have lost and we need to get back to winning quickly.” Cristiano Ronaldo was only used as a second-half substitute against Atletico and is expected to return the starting line-up two days before he will hope to get his hands on a third Ballon d’Or on Monday. Valencia’s victory over Madrid last weekend moved them back up to fourth and they can move to within a point of Barca and Atletico with a win at goal shy Celta Vigo today. Since shocking Barcelona at the Camp Nou in early November, Celta have taken just one point and failed to score in seven league games. Sevilla were the latest side to inflict defeat upon the Galicians and maintain their quest for a return to the Champions League when they visit Almeria in an Andalusian derby. Meanwhile, David Moyes will be hoping his Real Sociedad side kick on from their latest giant-killing this season when they travel to struggling Granada. SERIE A вЂ�No crisis’ at Juve as champions prepare to take on Napoli AFP Rome KING’S CUP Neymar hits double as Barcelona put five past Elche Reuters Barcelona N eymar’s double helped Barcelona cruise to a 5-0 victory in the п¬Ѓrst leg of their King’s Cup last 16 tie against Elche on Thursday to ease the pressure on coach Luis Enrique. The Brazilian put the Catalan club ahead after 34 minutes when he п¬Ѓred home following a well worked move and after that the flood gates opened against the bottom side in La Liga. Six minutes later Luis Suarez slotted past Przemyslaw Tyton after creating the chance with a delightful dummy as he allowed the ball to run through his legs before bearing down on goal. Lionel Messi, who was the focus of attention following a reported bust-up with Enrique, looked very motivated from the start with some lively runs and converted a penalty just before halftime after Neymar was felled by defender Enzo Roco. Jordi Alba made it 4-0 with a clinical п¬Ѓnish from a Messi pass after 55 minutes and Neymar got his second foal with a deflected drive Ronaldo (front) is the favourite to win the Ballon d’Orr award on Monday. Barcelona’s Brazilian forward Neymar da Silva Santos Junior (L) vies with Elche’s Polish goalkeeper Przemyslaw Tyton during the Spanish Copa del Rey (King’s Cup) round of 16 first leg football match FC Barcelona vs Elche FC at the Camp Nou stadium in Barcelona on Thursday. from distance п¬Ѓve minutes later. Shortly afterwards Neymar was substituted and made it clear he was unhappy as he shook his head when walking off. It was an important win for Enrique who was criticised for leaving Messi and Neymar on the bench for the defeat by Real Sociedad last Sunday with his team stuttering under him. The coach put out a п¬Ѓrst choice strike force against Elche as he could not afford another slip-up and he received a mixed reception from the Camp Nou crowd. At several times during the game fans chanted his name but they were then drowned out by whistles. “The only reflection that I will make is that which interests me, and I value the support of the fans to the players. They are the protagonists in this show and I like it that they are supported,” he told a news conference. “This is basic if we are going to have a good season and it is great if they can back the players.” It has been a difficult week with presidential elections brought forward a year to the end of this season due to general dissatisfaction with the management of the club. “I think that our supporters have belief in us and in this sense I am in favour of the decision to hold elections by the president (Josep Maria) Bartomeu as a generous gesture” said Luis Enrique. “This is a way of bringing some calm and hopefully we can build on that with some good results.” Barca will face either Real Madrid or Atletico Madrid in the King’s Cup quarter-finals once they finish off Elche. Atletico hold a 2-0 first-leg lead after the home leg on Wednesday. J uventus midп¬Ѓelder Claudio Marchisio has brushed off suggestions of a crisis, insisting the champions’ resolve will remain intact when they visit in-form Napoli looking for their п¬Ѓrst win of the year tomorrow. Juventus saw their lead over title challengers Roma reduced to a point on Tuesday when Mauro Icardi struck late for Inter to level Carlos Tevez’s п¬Ѓfthminute opener in Turin. Roma will go top if they beat Lazio in the city derby on Sunday afternoon, heaping further pressure on a Juventus side that lost the Italian Super Cup п¬Ѓnal to Napoli in Doha in their last game of the year. But having secured their qualiп¬Ѓcation for the last 16 of the Champions League, Marchisio has put the situation into perspective. “Maybe we could have handled certain games better, but speculation about physical or psychological problems is totally wide of the mark,” Marchisio told Sky Sport on Thursday. “There are always peaks and troughs in a season but when you come up against teams like Napoli you can’t fail to get п¬Ѓred up for the game.” Fixtures (All times Qatar) Today: Sassuolo v Udinese (8pm), Torino v Milan (10.45pm) Tomorrow: Inter v Genoa (2.30pm), Atalanta v Chievo, Cagliari v Cesena, Fiorentina v Palermo, Verona v Parma, Roma v Lazio, Sampdoria v Empoli (all 5pm), Napoli v Juventus (10.45pm) Napoli welcome Massimiliano Allegri’s men looking to emulate Genoa, the only team so far this season to take all three points from Juventus following their 1-0 home win at the Luigi Ferraris stadium in October. But while Marchisio admits meeting Napoli at their formidable San Paolo stadium will be “difficult”, he added: “They are a great side but we want to upset predictions and make sure we come away with the win.” While several Italian sides, notably Inter, look to bolster their squads for the second half of the campaign, Roma have not been in a selling mood. Midп¬Ѓelder Kevin Strootman, who only recently returned from a long injury lay-off, had attracted the interest of Manchester United but has ruled out a possible move. 6 Gulf Times Saturday, January 10, 2015 CRICKET Positive India will play for win at Sydney, says Ashwin SYDNEY: Encouraged by the perfect batting conditions and armed with a positive mindset, India will chase their first win of the series once Australia set them a target on the final day of the fourth Test, Indian spinner Ravichandran Ashwin said yesterday. Australia, 2-0 up in the series, have already taken an overall 348-run lead in the final match with four wickets intact and will declare early enough today to give their bowlers enough time to claim 10 Indian second innings wickets. Rather than batting out the day for a draw, Ashwin suggested the visitors will try to chase down the target on a benign track at the Sydney Cricket Ground. “We are here to play positive cricket and win games of cricket. If presented with the chance to try and go for a victory, we will try to go for it as sensibly as possible,” the 28-year-old off-spinner told reporters. “We are here to win games of cricket, there’s no two ways about it. “It all depends on how positively you can bat and the techniques you apply. Definitely it’s going to be a very positive game tomorrow, we will try and be positive about it.” Number eight batsman Ashwin himself capitalised on the ideal batting conditions to hit his fourth test fifty and was confident India can still sign off the series with a win. “It’s still pretty decently poised, although they definitely have an ace up. We’ll have to see how it goes. “There’s not a lot of devils in the wicket, but we definitely found it a little too hard to score, it’s a new ball wicket.” Underlining how good the track was for batting, Ashwin (50) added 65 runs for the eighth wicket with Bhuvneshwar Kumar (30), who was adjudged caught in a controversial decision. “This was one of the slowest innings in my test career. I wanted to bat as deep as possible and put it into as many holes as possible and make sure that if any team won, it was India,” Ashwin, who has two test centuries, said of his 111-ball knock. “But fortunately or unfortunately, the game is very well poised now, you don’t know which way it’s going to go.” FOURTH TEST Smith trumps Bradman to fuel Aussie run chase вЂ�To lead from the front the way he does and also to do it in all sorts of situations, it’s great to watch’ AFP Sydney S teve Smith eclipsed a Don Bradman record by powering a furious Australian run chase to set a massive target for India in the п¬Ѓnal Sydney Test yesterday. The Australian skipper with the Midas touch went helterskelter after the runs in a bid for a declaration to pursue the home side’s third victory in the four-match series on Saturday’s п¬Ѓnal day. Smith, backed by four centuries, passed Bradman’s 1947/48 record of 715 for most Australian runs in a series against India with a frenetic 71 off 70 balls. The skipper, who was given out leg before wicket to Mohammed Shami, п¬Ѓnished the series with 769 runs at an average of 128.16. Some late п¬Ѓreworks from Joe Burns with 66 off 39 balls with six fours and two sixes propelled Australia to 251 for six off 40 overs and a lead of 348 with Brad Haddin not out for 31. A declaration was likely overnight. The highest successful runchase record in the fourth innings of a Sydney Test is currently Australia’s 288 for two against South Africa nine years ago. “To lead from the front the way he does and also to do it in all sorts of situations, it’s great to watch,” Burns said of his skipper. “There aren’t too many batters in the world better at the moment, so it’s just great to watch.” Burns said Australia was in a strong position to go on and win the Test. “The wicket spun and I think it will only get harder to bat on as the game goes on,” he said. “We’ll come out tomorrow and I’m sure we’re going to create 10 opportunities. It’s just a case of taking all 10.” Chris Rogers raised his sixth straight 50 of the series with a glorious cover drive for four but he was out shortly after, hitting straight to Suresh Raina for 56 off 77 balls. The Australians п¬Ѓnally dislodged India for 475 after 162 overs to lead by 97 runs on the п¬Ѓrst innings shortly before tea. Warner out for four Virat Kohli was rewarded for some bold captaincy by getting п¬Ѓrst innings centurion David India’s Suresh Raina (second from left) reacts as Australia’s Shane Watson (left) avoids being run out as wicket keeper Wriddhiman Saha drops the ball on day four of the fourth Test against at the Sydney Cricket Ground in Sydney, yesterday. Warner for just four in the second over of the innings bowled by spinner Ravichandran Ashwin. Ashwin got an edge off Warner to Murali Vijay, the sixth time the spinner has claimed Warner’s wicket in Tests. “We deп¬Ѓnitely leaked a lot more runs than we would like to have, they played a few good shots,” Ashwin said. “It’s still pretty decently poised, although they deп¬Ѓnitely have an ace up, we’ll have to see how it goes.” Shane Watson, who narrowly avoided being run out shortly before tea in a mix-up, was bowled by Ashwin for 16 to complete an underwhelming series of just 238 runs at an average of 29.75, while Shaun Marsh lasted four balls for one. Yet another dropped catch stalled Australia’s efforts to mop up the Indian п¬Ѓrst innings when Burns made a hash of a chance off Bhuvneshwar Kumar on nought. His blooper was the 16th missed opportunity, which has cost the Australians 657 runs in the series. Kumar was eventually given out by umpire’s referral caught at slip by Watson off Nathan Lyon for 30 after putting on 65 with Ashwin. Paceman Mitchell Starc was rewarded for a terriп¬Ѓc over when he coaxed an edge off Ashwin, who was on 50, to Haddin for his third wicket of the innings. Haddin took his fourth catch and last of the innings to dismiss Umesh Yadav for four to end the Indian resistance nearing tea. The tourists lost the wickets of Kohli and Saha in the morning session. Kohli’s hopes of building an even bigger innings evaporated in the п¬Ѓfth over of the day when he fell to Ryan Harris. He clipped low to Rogers at mid-wicket and threw back his head in anguish before slowly departing with 147 off 230 balls including 20 fours. It was the new India skipper’s fourth century of the series, equalling Australian counter- SPOTLIGHT erage of 92.28, eclipsing Rahul Dravid’s 619 for India against Australia in 2003/04. SCOREBOARD Australia 1st innings 572 for 7 India 1st innings (overnight 342 for 5) M. Vijay c Haddin b Starc ..................................................0 L. Rahul c and b Starc .......................................................110 R. Sharma b Lyon..................................................................... 53 V. Kohli c Rogers b Harris ............................................147 A. Rahane lbw b Watson ...................................................13 S. Raina c Haddin b Watson ...........................................0 W. Saha c Smith b Hazlewood .................................35 R. Ashwin c Haddin b Starc ........................................50 B. Kumar c Watson b Lyon .........................................30 M. Shami not out .......................................................................16 U. Yadav c Haddin b Harris ............................................. 4 Extras (b4, lb7, w1, nb5) ....................................................17 Total (all out, 162 overs) ...............................................475 Fall of wickets: 1-0 (Vijay), 2-97 (Sharma), 3-238 (Rahul), 4-292 (Rahane), 5-292 (Raina), 6-352 (Kohli), 7-383 (Saha), 8-448 (Kumar), 9-456 (Ashwin), 10-475 (Yadav) Bowling: Starc 32-7-106-3, Harris 31-7-96-2 (3nb), Hazlewood 29-8-64-1 (1w), Lyon 4611-123-2 (1nb), Watson 20-4-58-2 (1nb), Smith 4-0-17-0 Australia 2nd innings C. Rogers c Raina b Kumar .........................................56 D. Warner c Vijay b Ashwin ............................................. 4 S. Watson b Ashwin ...............................................................16 S. Smith lbw b Shami .............................................................71 S. Marsh c Vijay b Ashwin ...................................................1 J. Burns c Yadav b Ashwin ...........................................66 B. Haddin not out ......................................................................31 R. Harris not out ...........................................................................0 Extras (b2, lb2, nb2) ..............................................................6 Total (6 wickets; 40 overs) ........................................251 Fall of wickets: 1-6 (Warner), 2-46 (Watson), 3-126 (Rogers), 4-139 (Marsh), 5-165 (Smith), 6-251 (Burns) Bowling: Kumar 8-0-46-1, Ashwin 19-2-105-4, Shami 6-0-33-1 (1nb), Yadav 3-0-45-0 (1nb), Raina 4-0-18-0 OPINION Shocked at Tharanga’s omission from Cup squad: Muralitharan IANS Dubai S ri Lankan spin legend Muttiah Muralitharan has said he was surprised to see young allrounder Jeevan Mendis getting picked ahead of seasoned batsman Upul Tharanga in the country’s 15-member World Cup squad. The off-spin maestro, a member of the World Cup winning squad in 1996, also expressed concern about the balance of the squad to be led by ace all-rounder Angelo Mathews. “The Sri Lanka squad for the World Cup contained two big surprises for me: the absence of opener Upul Tharanga and the inclusion of Jeevan Mendis as a spin-bowling all-rounder,” Muralitharan wrote in a column published at the International Cricket Council (ICC) website Thursday. “Tharanga’s omission shocked me. True, he had not been picked against England part Smith’s achievement. It also took Kohli’s series aggregate to a record 646 at an av- Sri Lankan spin legend Muttiah Muralitharan or New Zealand, but he has a decent One-Day International record, averaging just under 34, and he has the precious gift of experience, with 176 matches under his belt.” But the right-arm former spinner said apart from these two decisions, the squad picked was formidable, particularly the batting depth. “I do worry about the balance of the squad thanks to Jeevan Mendis’ inclusion ahead of Tharanga but overall it is a solid line-up, full of experience, especially in the batting, and if everyone stays п¬Ѓt and п¬Ѓnds form then there is no reason why Sri Lanka cannot at least match their achievements of the last two editions,” he said. The 42-year-old, who represented his country in п¬Ѓve World Cups - 1996, 1999, 2003, 2007, 2011 - taking 67 wickets, felt left-handed opener Tharanga’s experience would have been helpful in Australian conditions. “He was a key member of our squads in both 2007 and 2011 when we reached the п¬Ѓnal on both occasions, and in that latter tournament he made 395 runs, including centuries against Zimbabwe and England, at an excellent strike-rate of almost 84 runs per hundred balls,” he said. “Tharanga was involved with the one-day side as recently as the hastily arranged tour of India in November and my strong preference would have been to have him to open alongside Tillakaratne Dilshan and, rather than leaving out Dimuth Karunaratne, the man now earmarked for that role, I would have sacriп¬Ѓced Jeevan Mendis.” Muralitharan, world’s highest wicket-taker with 1334 scalps (800 in Tests and 534 in ODIs), also defended the Sri Lankan selectors’ decision to include injury-plagued pacer Lasith Malinga. “I do agree with chairman of selectors Sanath Jayasuriya about the inclusion of Lasith Malinga, that his selection is a risk worth taking, even though the fast bowler is still on the comeback trail following surgery to his left ankle last year,” Muralitharan said. “Malinga is a match-winner, someone who will enjoy conditions in Australia and New Zealand and as, like Mahela (Jayawardene) and Kumar (Sangakkara), he is likely to be playing his last World Cup,” he added. “He may well п¬Ѓnd within himself the extra motivation to go out with a bang, especially as he was part of the squad that fell at the п¬Ѓnal hurdles in both 2007 and 2011.” New Zealand can reach World Cup final, says coach IANS Wellington N ew Zealand coach Mike Hesson has said the 15-member strong squad selected for next month’s cricket World Cup possesses the right mix of youth and experience to realise the Kiwis’ dream of entering the п¬Ѓnals. “I think within the squad we’ve got an ability to adapt to different conditions and I don’t think we’ll be rolling out the same 11 every game, depending on the surfaces we face,” Hesson was quoted as saying by cricket. com au yesterday. “The fact we’ve got two spinners in the squad gives us options, the fact we’ve got guys with genuine pace means we can attack different sides in different ways.” Grant Elliot’s inclusion raised eyebrows as the all-rounder hasn’t played for the national team since November 2013, but Hesson justiп¬Ѓed his recall saying he provides the team multiple options which they require. “Grant has performed well in New Zealand and Australian con- ditions. He’s in good form, he’s able to offer us a bowling option, and he’s experienced,” he said. “He’s also got a bit of craft about him in terms of how he manoeuvres the ball - he’s a welcome addition to the squad.” Skipper Brendon McCullum said it was exciting to see the squad coming together, with just over п¬Ѓve weeks until their п¬Ѓrst game against Sri Lanka at Hagley Oval in Christchurch Feb 14. “On paper, it’s without doubt the strongest team I’ve certainly been involved with heading into a World Cup,” he said. “But games aren’t won on paper, so we’ve got to make sure we’re able to transfer the look of our squad to performance out on the п¬Ѓeld.” Meanwhile, New Zealand bowling coach Shane Bond will step down after the World Cup, the country’s cricket board said yesterday. Former Test bowler Bond would not be renewing his contract against the wishes of the board, New Zealand Cricket (NZC) said, without elaborating on why the 39-year-old was withdrawing his services. Gulf Times Saturday, January 10, 2015 7 SPORT ATHLETICS Kenyan athletics boss says doping crisis вЂ�as bad as AIDS’ AFP Nairobi T he head of Kenya’s athletics governing body said yesterday that a crisis over doping among the east African nation’s fabled distance runners was “as bad as AIDS”. Athletics Kenya president Isaiah Kiplagat, who has been fending off allegations of failing to take the issue seriously, promised to put in place strin- gent domestic anti-doping test procedures. The crisis in Kenyan sports follows the disgrace of top female marathoner Rita Jeptoo, a two-time Chicago and Boston winner who was caught using the blood-boosting drug EPO. “This doping issue is just as bad as AIDS. This will be a serious elaborate exercise. We will roll out an educative programme such as the one Kenya launched when HIV-AIDS was п¬Ѓrst detected,” Kiplagat told reporters. “We plan to have our own RUGBY Reuters Sydney V some good Rugby for the Waratahs and hopefully getting selected for the Wallabies.” Cheika, who helped Beale resurrect his career at the Waratahs last year after alcohol problems brought a premature end to his time at the Melbourne Rebels, welcomed his retention. “Kurtley is a fantastic player who will add to our great talent pool of inside backs,” said Cheika. “I’m looking forward to getting the best out of him again over the next 12 months.” Although Beale started his career as a flyhalf and has played much of his international rugby at fullback, Cheika has used him at inside centre at the Waratahs. Beale is a highly skilled player whose turn of pace and ability to squeeze through the narrowest of gaps can bamboozle even the best defences. His value as an impact player coming off the bench is heightened by his proven ability to land long penalties in clutch situations towards the end of a games. SPOTLIGHT Montpellier prolong Galthie suspension AFP Paris M ontpellier yesterday extended the suspension of coach Fabien Galthie, the former French rugby captain, with the club president saying Galthie’s management had been a “failure”. Galthie was relieved of his duties on December 29 after a string of defeats, with South Africa’s 2007 World Cup winning coach Jake White brought in as a consultant to take over the reins. “The suspension is extended. I’m giving myself time to reflect,” said club president Mohed Altrad, after prolonging the initial suspension which ran until January 9. “I let him know my grievances,” Altrad continued. “I’m disappointed because this period of provisional suspension is intended to give the employee time to think ... to come and say something interesting to his boss. “He didn’t tell me anything. Saying вЂ�I’ve nothing to say’ leaves very little after such a meeting.” Altrad said he had “eight up—for all elite athletes. Kenya’s sports bosses have been accused of inaction on the doping issue, which has cast a shadow over the recordbreaking and medal-winning achievements of its distance runners—who are a major source of national pride. They have also cast the current crisis as being a result of what they insist are dishonest foreign agents and coaches who are “corrupting” Kenyan runners. Jeptoo is the biggest name in Kenyan athletics to have been busted for cheating, and will appear before a disciplinary panel next week. She is expected to face a two-year ban and be stripped of her recent titles. Jeptoo tested positive for EPO, which can massively increase endurance and recovery times during intense training, in an out-of-competition test in Kenya last September. A test of her “B” sample, conducted at the World Anti-Doping Agency laboratory in Lausanne in December, conп¬Ѓrmed the presence of the drug. GOLF Beale signs with Wallabies through World Cup ersatile back Kurtley Beale (pictured), who was at the heart of the text message scandal that led to Australia rugby coach Ewen McKenzie’s resignation last year, has signed on for another season with the Wallabies. Beale, who turned 26 on Tuesday, will now almost certainly play a part in the World Cup in England this year as well as help the New South Wales Waratahs defend the Super Rugby title. Both teams will be guided by Michael Cheika, who replaced McKenzie when the former test prop quit in the wake of the scandal over obscene text messages sent to a female member of the Wallabies staff. Beale, who has been involved in a string of disciplinary issues over the last few years, faced having his contract torn up over the incident but an independent tribunal instead landed him with a A$45,000 ($36,495) п¬Ѓne. He rejoined the Wallabies squad on their November tour of Europe after regaining his п¬Ѓtness and won his 48th and 49th caps off the bench against England and Ireland. “I’m really looking forward to the year ahead and am grateful to the ARU and Waratahs for the opportunity to continue my career here in Australia,” Beale said. “With the World Cup coming up, I’m looking forward to getting back out there and playing Athletics Kenya president Isaiah Kiplagat doping control officers to nab the athletes locally,” he said, adding that Athletics Kenya would partner the newly-launched Antidoping Agency of Kenya (ADAK) to conduct random in-competition and out-of-competition testing. Other measures to be put in place include a lifetime ban on any sports agent or coach who has three athletes in their stable who test positive for doping, plus the mandatory introduction of biological passports—which monitor changes in blood make- pages of criticisms” against Galthie covering team results, his “blunt” manner of communication, “defeatist, aloof and non-motivating behaviour” and his “criticism” of players and the club president. “It’s a failure. We can’t say that Galthie’s path this season has been a success. “You have to go a long way back in French rugby history to п¬Ѓnd a club which has lost eight out of nine matches. “I also remember his comments before the match at Bath (European Cup on December 5, 30-5 defeat), when he said that we were going to lose,” added Altrad. “The players, including (David) Attoub and (captain Fulgence) Ouedraogo, were saying they were going to п¬Ѓght, at least put on a good show and why not win. His (Galthie) comments didn’t put the players in a comfortable position.” Altrad also slammed Galthie’s outside activities, advertising campaigns, and television commentary roles, along with a trip to Brazil when the team prepared for and played a Top 14 match. One TV advertising campaign had Galthie declaring what he would do as future coach of the France national team. Sullivan takes lead at South African Open вЂ�I thought I did well on eight to make birdie after a couple of smelly holes in the middle’ Reuters Johannesburg Woods вЂ�ready to go,’ will make season debut in Phoenix E Tiger Woods will make his season debut at this month’s Waste Management Phoenix Open, a tournament he has not played in 14 years, the former world number one said yesterday. Woods, who was limited to nine tournaments last year due to back issues, also said he will play the following week’s Farmers Insurance Open at Torrey Pines in La Jolla, California. The Phoenix Open, famous for its massive galleries and an amphitheatre par-three 16th that is the center of the event’s party atmosphere, will mark Woods’s п¬Ѓrst event since п¬Ѓnishing tied for last at the 18-player Hero World Challenge last month. “It will be great to return to Phoenix,” Woods said in a statement on his website. “The crowds are amazing and always enthusiastic, and the 16th hole is pretty unique in golf. “Torrey is a very important place to me. My pop took me there when I was younger, and I have a lot of special memories of watching the tour play there when I was growing up.” In three previous starts at Phoenix, Woods cracked the top п¬Ѓve twice, п¬Ѓnishing third in 1999 and tied for п¬Ѓfth in 2001. In 1997, he electriп¬Ѓed the huge crowds surrounding the par-3 16th hole by making a hole-in-one. Woods is very familiar with Torrey Pines, where he grew up playing junior golf, and he has won the tournament seven times, most recently in 2013. The last of his 14 majors came in the 2008 US Open on the South Course at Torrey Pines where he beat Rocco Mediate in a playoff. nglishman Andy Sullivan took a single stroke lead after shooting a 70 in the second round of the South African Open at Glendower Golf Club yesterday. But he will be feeling the heat with Charl Schwartzel just one shot behind in second place after the 2011 Masters winner hit a 69, starting his round with consecutive bogeys but п¬Ѓnishing birdie, eagle, birdie for a tworound total of 137. Schwartzel is the highest proп¬Ѓle South African golfer to have never won the country’s top professional prize in a tournament п¬Ѓrst played more than a century ago. But the sentimental favourite Ernie Els, who was just one off the overnight leaders after a п¬Ѓrst round 67, fell dramatically back after a п¬Ѓve over-par 77 which included two triple bogeys. He did make the cut, however. Sullivan, who carded an opening day 66, said he felt he might have been able to post a better score but dropped shots after п¬Ѓnding the thick rough off the tee. “I thought it was going to be a really good knock on the front nine, but a few little errant drives meant the rough got its payback on me today,” he told reporters. “But anything in red п¬Ѓgures (under par) is good, so I am really happy with the position I am in. I thought I did well on eight to make birdie after a couple of smelly holes in the middle.” Sullivan’s day included four birdies, three of which came on the back nine – Sullivan’s п¬Ѓrst nine – at Glendower Golf Club Andy Sullivan carded a two-under 70 to take a one-shot lead at 8 under at the South African Open at Glendower Golf Club yesterday. in Johannesburg. It was enough to hold off Charl Schwartzel, who sits in second place after a second-round 69. Schwartzel closed birdie-eagle-birdie to move within a shot of the lead. “When I get in these positions I п¬Ѓnd myself enjoying it more,” Sullivan said. “It’s where you want to be, you practice to be in these situations and I am playing with the guys I always wanted to as a kid. It’s fantastic. “It’s new territory to be up there after two rounds, but hopefully I can take what I usu- ally do in rounds three and four, and blow the п¬Ѓeld away.” Joint overnight leader Jbe Kruger slumped after a round of 80. Denmark’s Lasse Jensen and South Africans Colin Nel and JJ Senekal are tied in third place, two strokes off the lead. PREVIEW Family expectations a вЂ�problem’ for Johnson on Maui Reuters Kapalua, Hawaii R eturning to the Hawaiian island of Maui for the PGA Tour’s Hyundai Tournament of Champions is a double-edged sword for Zach Johnson, whose young family now expect him to be a perennial qualiп¬Ѓer for the event. Johnson clinched last year’s title by one shot over fellow American Jordan Spieth and will be competing in the winners-only п¬Ѓeld at Kapalua Resort for the eighth time, having missed out on qualiп¬Ѓcation only once since 2007. The elite $5.7mn event this week brings together 34 winners from the previous season and Johnson, an 11-times champion on the PGA Tour, has given his children the impression that he punches his ticket Zach Johnson to Maui virtually at will. “My (two) boys, granted they’re young, they kind of expect it,” a smiling Johnson told reporters while preparing for Friday’s opening round on the Plantation Course. “That’s a problem. My eightyear-old has celebrated six birthdays here in Maui. That’s also a problem, but a good problem. “It’s great to be back in Maui. This is a pretty special place to start, and it’s one that certainly I and my family relish because it’s not easy getting back here.” Johnson triumphed at Kapalua last year after closing with a seven-under-par 66, iron-clad conп¬Ѓrmation that he has adjusted well to a hilly layout that measures 7,452 yards. “I used to think this golf course wasn’t in my favour but the more and more I play it, the better I feel like it is suited to me,” said the 38-year-old American. “I’ve grown to at least enjoy it, for sure.” South African Tim Clark, like Johnson one of the shorter hitters on the PGA Tour where power is a prized commodity, has also had to adapt to Kapalua’s special requirements. “My п¬Ѓrst reaction was, вЂ�Do we get a cart for the week?’” Clark recalled of his Tournament of Champions debut in 2011 when he tied for 17th. “It’s certainly an interesting golf course. “On a personal level, I’d like to see it a little bit narrower ... but I like the grasses we’ll be playing on and I like playing in the wind, so I look forward to the week.” Long established as the opening event on the PGA Tour, this week’s edition is the eighth in the вЂ�wrap-around’ season that was п¬Ѓrst introduced for 201314. Masters champion Bubba Watson, the American world number four, heads the п¬Ѓeld. 8 Gulf Times Saturday, January 10, 2015 SPORT NBA Rockets send reeling Knicks to 14th straight loss вЂ�It’s not fair what they’re doing. They’re terrible. And Carmelo should be playing. Why isn’t he playing?’ frame, Harden was done for the night, as well as diehard Knicks fan and п¬Ѓlm director Spike Lee, who was long gone, as the Rockets coasted home with the lopsided win. “They’re going through a tough time, but they’ll turn it around soon,” Harden said. Elsewhere, LaMarcus Aldridge had 24 points with 12 rebounds, Wesley Matthews netted 18, and the Trail Blazers beat the visiting Heat 99-83 for their sixth win in the last seven games. Trailing by п¬Ѓve at the break, Portland (28-8) opened on a 17-3 run and outscored its guests 3316 in the pivotal third quarter, with Aldridge dropping in 10 for a 76-64 lead. The gap grew to as much as 23 in the п¬Ѓnal frame, as the Trail Blazers improved to 16-2 at home. Dwyane Wade netted 23 points and Chris Bosh added 18 for Miami (15-21) losers in п¬Ѓve of its last six games. Gerald Henderson dropped in a season-high 31 points, Kemba Walker added 29, and the visiting Hornets (14-24) trimmed the suddenly-slumping Raptors 103-95 for their fourth straight victory. The Raptors cut an early 11-point deficit to 99-95 with 42.3 seconds remaining. But Walker hit a jumper with 19.6 seconds left to seal the victory. Kyle Lowry had 24 points and Lou Williams added 15 for Toronto (24-11) which suffered a season-high fourth straight loss. Agencies Los Angeles T he Houston Rockets have championship aspirations while the woeful New York Knicks continue to turn the Big Apple rotten. League top scorer James Harden tossed in 25 points in just three quarters, Trevor Ariza added 18, and the visiting Rockets extended the Knicks’ franchise-record losing streak to 14 Thursday with a 120-96 victory. Asked how the Rockets prepared for the league-worst Knicks п¬Ѓlled with untested youngsters and players on 10day contracts, Harden said “We have one goal at the end of the season and that’s to be champions.” “We can’t play down to our competition.” Lithuania’s Donatas Motiejunas netted 17 points, Patrick Beverly had 14 while Dwight Howard collected 13 with 10 rebounds for Houston (24-11) which hit 16-of-36 from behind the arc and led by as many as 27 en route to its 12th straight victory in the series. Reserves Travis Wear had 21 points, Langston Galloway had 19 and Cleanthony Early added 16 for the short-handed Knicks (5-34), losers of 11 consecutive home games and 24 of their last 25 overall. “I see frustration, I see disappointment,” said Knicks rookie coach Derek Fisher, whose club hasn’t won since beating Boston on December 12. “None of us is enjoying losing at all.” It’s gotten so embarrassing at Madison Square Garden that п¬Ѓve young adults sat behind the baseline near the Rockets bench, each wearing brown paper bags over their heads in protest over Toronto Raptors guard Kyle Lowry dribbles past Charlotte Hornets guard Kemba Walker during the fourth quarter at Air Canada Centre on Thursday. the Knicks’ play. “We’re doing this because the Knicks are the worst team,” one of the bag-wearers, 18-year-old James Martucci told the New York Daily News. “It’s not fair what they’re doing. They’re terrible. And Carmelo should be playing. Why isn’t he playing?” With their top scorer Carmelo Anthony missing his п¬Ѓfth straight game because of a sore left knee, the Knicks trailed 5642 at halftime as Harden and Ariza combined for 32 points. The deп¬Ѓcit grew to 24 be- Results hind Howard’s 11 third-quarter points. With Houston comfortably ahead, 93-69 entering the п¬Ѓnal Charlotte Houston Portland 103 Toronto 95 120 NY Knicks 96 99 Miami 83 NFL Cowboys-Packers rematch tops playoff games AFP New York I n a rematch of a brutally cold 1967 playoff classic dubbed the “Ice Bowl,” the Dallas Cowboys and Green Bay Packers meet tomorrow, topping a weekend of intense knockout clashes. The Cowboys, unbeaten on the road this season, travel to Green Bay, perfect at home in the campaign, in sub-freezing conditions and one team will have its title dreams ended. “We don’t pay attention to them being 8-0 on the road because they haven’t come here and beaten us here at Lambeau,” Packers defensive back Micah Hyde said. “But it’s going to be a tough matchup and we understand that.” It’s the п¬Ѓrst time the Cowboys have visited Lambeau Field for a playoff game since New Year’s Eve in 1967, when Bart Starr’s late touchdown plunge in wind chills averaging minus-48 (minus-44 Celsius) gave the Packers a 21-17 triumph on their way to winning the second Super Bowl. The last time an unbeaten road team visited an unbeaten host in the playoffs came in 1972 when visiting Miami won at Pittsburgh on the way to the only undefeated Super Bowl championship run. “This will be a big challenge,” Packers coach Mike McCarthy said. “It’s deп¬Ѓnitely something that jumps off the stat sheet when you see eight wins on the road.” The Cowboys, featuring NFL rushing champion DeMarco Murray and standout quarter- back Tony Romo, have lost their past six road playoff games while the Packers, whose quarterback Aaron Rodgers has been nagged by a calf injury, has thrown 38 touchdowns without an interception in 477 passes over his past 16 home games. The Cowboys have not reached the Super Bowl since winning their third in four seasons in 1996. And since the Packers last won the Super Bowl in 2011, they saw a 15-1 season end with a home playoff loss to the New York Giants and exits to San Francisco the past two years. The Packers-Cowboys winner will face either defending Super Bowl champion Seattle or upstart Carolina, only the second playoff qualifier with a losing regular-season record, in the National Conference final. In the American Conference, Denver quarterback Peyton Manning will guide the Broncos against his former club, the visiting Indianapolis Colts, tomorrow while the top seed New England Patriots play host today to Baltimore, the Ravens fresh off winning their playoff opener at Pittsburgh. Winners of the conference п¬Ѓnals on January 18 will advance to the Super Bowl championship spectacle on February 1 at Glendale, Arizona. Manning, who guided the Colts to a Super Bowl crown in 2007, is 0-4 in playoff games when the temperature is below 40 degrees and such conditions are forecast Sunday. His replacement as the Colts’ signal caller, Andrew Luck, is 0-2 in road playoff starts. Manning’s Broncos were rout- ed by Seattle in last year’s Super Bowl and the Seahawks look tough again thanks to a stellar defensive unit that allowed the fewest points in the NFL, although it п¬Ѓgures to be tested by Carolina run-pass threat Cam Newton. Seattle, Carolina streaking The Seahawks have won six in a row while the Panthers have won п¬Ѓve consecutive games, most recently ousting Arizona in last week’s п¬Ѓrst round while Seattle and this week’s other hosts enjoyed a bye. Seattle star rusher Marshawn Lynch and quarterback Russell Wilson will be challenged by a quick Carolina defensive lineup, but the Panthers have led in the second half of games against the Seahawks in each of the past three years only to lose. The Ravens, who won the 2013 Super Bowl, and the Patriots, who lost the 2008 and 2012 title games since taking their third crown in four seasons at the 2005 Super Bowl, meet in New England for a playoff contest for the fourth time since 2009 with Baltimore seeking a third road triumph. Owners back Goodell after probe supports Rice story National Football League club owners restated their support for commissioner Roger Goodell after an independent probe backed his version of events in the Ray Rice domestic violence scandal. The confirmation of Goodell’s account that no NFL employee had seen a brutal knockoutpunch elevator video before the public, and before punishment was imposed, brought resounding support in the form of a reaction letter from New York Giants president John Mara and Pittsburgh Steelers president Art Rooney II on behalf of all 32 NFL club owners. “It is clear to us that commissioner Goodell was forthright in the statements he made to the owners about this matter, and we have every confidence that Roger Goodell is the right person to lead the league as we move forward,” Mara and Rooney said. Goodell had been criticised for issuing the former Baltimore Ravens running back only a two-game ban over a domestic violence incident last February at an Atlantic City casino. That became an outcry of criticism after website TMZ released a video of Rice knocking out Janay Palmer, his then-fiancee whom he later married, in an elevator. Goodell then toughened the punishment to an indefinite suspension, a move Rice later had overturned on appeal. When an Associated Press report said a law-enforcement official had sent a copy of the elevator video to the NFL months before it was public and that a voicemail from a woman at the league office confirmed receipt of the package, some called for Goodell to be punished for trying to downplay the matter after the league had seen the brutal elevator punch. That sparked the investigation by former FBI director Robert Mueller which ended with a report Thursday that said the league should have undertaken a more complete investigation before punishing Rice. Los Angeles Kings center Mike Richards (left) falls as New York Rangers defenseman Kevin Klein takes the puck during the second period of an NHL hockey game on Thursday in Los Angeles. NHL Rangers top Kings 4-3 in Stanley Cup final rematch Agencies Los Angeles N early seven months after the New York Rangers’ Stanley Cup hopes were crushed on the Staples Center ice, they returned to Hollywood and demonstrated why they’ve got a great chance to get back to the big stage again this summer. Dan Boyle had a goal and an assist, Cam Talbot made 28 saves and the Rangers held off the Los Angeles Kings for a 4-3 victory Thursday in a rematch of last year’s Stanley Cup п¬Ѓnals. Kevin Klein, Lee Stempniak and Martin St. Louis scored in a 5:46 span of the second period for the Rangers, who erased an early two-goal deп¬Ѓcit and completed a Southern California sweep with their 12th win in 13 games overall. вЂ�вЂ�It’s a tough building to come in and play, and obviously we didn’t fare very well in here last time,’’ said Talbot, who overcame a rocky beginning to win in just his second start in New York’s last 13 games. вЂ�вЂ�It’s a good measuring stick for us. It was great to get a win in a building like this.’’ Derick Brassard had two assists for the Rangers, who are on their longest streak of regular-season success in two decades. Conn Smythe Trophy winner Justin Williams got his second goal with 4:03 to play while the Kings dominated the third period, but Talbot held on during the Kings’ 6-on-4 advantage in the п¬Ѓnal 35.9 seconds. вЂ�вЂ�When we’re not skating, we don’t play to our strengths,’’ Brassard said. вЂ�вЂ�In the п¬Ѓrst period, we were pretty slow out there. In the second period, we started skating, and that gave us a chance to win.’’ Elsewhere, Jakub Voracek scored a power-play goal 1:28 into overtime to lift the Philadelphia Flyers to a 3-2 win over the Washington Capitals. In addition to Voracek, who leads the NHL with 49 points on 16 goals and 33 assists, the Flyers (16-18-7) also got goals from R.J. Umberger and Sean Couturier. Washington goaltender Braden Holtby made 30 saves while starting his 23rd straight game, a Caps (21-127) record. Alexander Steen scored one goal and assisted on another to lead the St. Louis Blues to a 7-2 win over the San Jose Sharks. Seven different players scored for the Blues (25-13-3), who have now scored 20 goals in their last three games. The Sharks fell to 22-15-5 with the loss. Results Boston Philadelphia Carolina St. Louis Nashville Chicago Colorado Arizona Florida NY Rangers 3 3 5 7 3 4 5 4 3 4 New Jersey Washington Buffalo San Jose Dallas Minnesota Ottawa Winnipeg Vancouver Los Angeles 0 2 2 2 2 2 2 1 1 3 Gulf Times Saturday, January 10, 2015 9 SPORT SPOTLIGHT Doha rout Abu Dhabi Harlequins in Gulf Top Six Rugby Championship Doha had lost to Harlequins in the Sevens final in December, and they took their revenge for that heart-break in style Doha and Abu Dhabi Harlequins players slug it out during the opening round match of the Gulf Top Six Rugby Championship at Doha Rugby Football Centre yesterday. PICTURES: Nasar T K By Sports Reporter Doha D oha started their Gulf Top Six Rugby Championship campaign on a commanding note, with a thumping win over defending champions Abu Dhabi Harlequins yesterday. At the Doha Rugby Football Centre, the hosts convincingly beat Harlequins 50-10 in a lopsided game. Doha had lost to Harlequins in the Sevens п¬Ѓnal 5-27 in December, and they took their revenge for that heart-break in п¬Ѓne style. It was a very good win for Doha against Harlequins, with the Abu Dhabi’s oldest team mostly consisting of youngsters. For Harlequins, wingers Adel al-Hendi and William Umu, who enjoyed a storming Sevens п¬Ѓnal with a bagful of tries, were both missing, while Quins’ pack too were without a host of heavy-hitters, including flankers Renier Els and Charlie Farmer and lock Anthony Murphy and brother Graham, who is a prop. Harlequins’ full-back Jeremy Manning, at 29, is among the oldest members in the team but they have been in п¬Ѓne form last year. They won the two major titles last year – the UAE Premiership and the Dubai Sevens last year. Doha couldn’t have been heading into the competition in any better form, having won six games out of six in their pre-Christmas tournament of the Gulf Premiership, beating Muscat, Kuwait and fellow Gulf Top Six representatives, Bahrain. Still it was touted to be a difficult en- counter for Doha. In the end, the hosts hardly put a foot wrong in the п¬Ѓrst game of the competition. It was pretty much a perfect conditions at the DRFC, with slight breeze and lush green cover making it ideal. Both the teams began on a careful note in the п¬Ѓrst п¬Ѓve minutes, wary of conceding a try. It was Doha, who jumped into a 5-0 lead, after a п¬Ѓne hands off the back of the scrum resulting a in a try, which winger Flo Lacambra converted. However, Quins reduced the deп¬Ѓcit by three points through a penalty. Thereafter the pace of the pace picked up, with Doha strong lines causing havoc within Harlequins defence allowing the hosts to a take strong lead which they kept throughout. A try by Tim Newnham and conversion from Greg Evans increased the lead to 19-3, before a strong run and a well-deserved try from David Ford made it 24-3 in favour of Doha. The hosts further increased their lead to 25-3 after a try from Kerne Wales. Harlequins attempted to mount back and came out of the blocks quickly to reduce the deficit to 29-10, but that was the last try for them as Doha dominated thereafter till the п¬Ѓnal whistle. Doha coach Aaron Palmer was pleased with the victory. “We have trained well this week, given that most guys have been away for the Christmas break and we haven’t had any 15s rugby since mid-November. We got back into our moves and patterns seamlessly and hope to carry that into the game tomorrow,” he said after the match. “We welcome new flyhalf Stefano Hunt into the squad, he has arrived from Australia and should be a genuine asset for the team for the Top 6 competition,” he added. After п¬Ѓrst round of the competition, Doha lead the Gulf Top Six table with п¬Ѓve points ahead of Dubai Hurricanes and Abu Dhabi Saracens thanks to superior goal difference. Harlequins are at the bottom, below Jebel Ali Dragons and Bahrain. FOCUS Boston claims frontrunner spot in 2024 Olympics race Reuters Berlin B oston joined the race to host the 2024 Olympics, instantly claiming the favourites tag as the United States look to land their п¬Ѓrst summer Games since 1996. It is not so much what the city is offering that gives it an edge at the start of the two-year race but rather the timing of its candidacy and improved ties between US Olympic Committee (USOC) chiefs and the International Olympic Committee. Germany will bid with either Hamburg or Berlin while Rome has also conп¬Ѓrmed it will campaign for the biggest sports event in the world with a decision set for 2017. But Boston looks to be the city to beat as it seeks to bring the Games back to the United States some 28 years since the Atlanta 96 Games, with IOC President Thomas Bach welcoming what he said was a strong candidacy. “The Boston bid will be a strong one. Bostonians are well known for their enthusiasm for sport and the city has a great heritage in sport, science and education,” Bach said yesterday. “The bid also has the great potential to build on the strength of the athletes from the US Olympic Team - US athletes have a worldwide reputation and will be a huge asset for the bid.” Boston, the п¬Ѓrst U.S. city to bid after failed attempts by New York in 2005 for the 2012 Games and Chicago in 2009 for the 2016 Olympics, was unveiled over two-time host Los Angeles, San Francisco and Washington on Thursday. When Chicago was spectacularly eliminated in the п¬Ѓrst round of voting for the 2016 Olympics, it was the culmination of a clash between the IOC and the USOC that had been brewing on several fronts for years. A bitter row between the two sides over an old sponsorship and television rights revenue sharing agreement that the IOC wanted to update to reflect current market conditions and the USOC opposing it had reached boiling point. A unilateral 2009 announcement by the USOC of plans to set up an Olympic channel without consulting the IOC added further oil to the п¬Ѓre that led to the sensational snubbing of Chicago despite US President Barack Obama’s personal pitch at its session in Copenhagen. Since then a new revenue sharing deal between the two sides has been forged, the IOC is setting up its own Olympic channel and the United States Olympic Committee has a new presi- United States Olympic Committee president Lawrence F. Probst III speaks after Boston candidature was announced to host the 2024 Olympics. dent with Larry Probst. “This is a very different USOC from the one in 2009,” said Stratos Saп¬Ѓoleas, Olympics consultant for the Pyeongchang 2018 winter Games, who also worked on the Chicago candidacy. “In the past п¬Ѓve years USOC has worked energetically to bridge differ- ences with the IOC, it became more internationalist in its outlook, it sought and made friends in international federations and national Olympic committees. This effort culminated in getting Probst elected as an IOC member. I expected that the transformation in the USOC will be reflected in the strategy of Boston’s Olympic bid,” said Saп¬Ѓoleas. The IOC has also elected a new chief with Bach replacing Jacques Rogge in 2013 and almost immediately ushering in a string of reforms aimed at making the Olympics a more attractive proposition. Voted in last month, the changes named “Agenda 2020” make bidding easier and cheaper, reducing costs which in the past were as much as $100 million. They also allow for greater flexibility for cities to integrate the Games into their own urban development plans rather than forcing the city to bend them to п¬Ѓt the Olympics. The United States still remain the biggest cash cow for the IOC with broadcaster NBC having signed a staggering $7.65 billion deal with the IOC for North American broadcasting rights of the Games until 2032, conп¬Ѓrming this as the single biggest source of revenue for the Olympic movement. US companies, such as General Electric, Coca-Cola, McDonald’s and Procter & Gamble among other, have continued as top sponsors of the IOC, penning long-term deals and strengthening the argument for a US winner for 2024. With the 2014 Sochi winter Games drawing criticism over hosts Russia’s human rights record, the IOC is eager to polish up its prime product with top bids, especially after four of six bidders for the 2022 winter Games dropped out over п¬Ѓnancial concerns or lack of public support. “Clearly to have four leading American cities actively bidding for being the candidate shows that the concept and the product is not broken,” sports marketing expert Michael Payne, former longtime IOC marketing chief, told Reuters yesterday. “The recent reform process is also making bidding easier, simpler and better.” Boston, like most cities bidding for the Olympics these days, will need to gain wide public support for a project seen by critics as too expensive and too big for any city and with far-reaching п¬Ѓnancial, social and environmental repercussions long after the Games have come and gone. “The big challenge Boston has got to address is the question of public support because that will make or break the bid,” said Payne. With more cities expected to join the fray until the September deadline—including possibly Doha, Dubai, Paris, Istanbul, Budapest as well as an African bid, Boston will face stiff competition but it looks to have at least secured the inside lane at the start. 10 Gulf Times Saturday, January 10, 2015 SPORT BRISBANE INTERNATIONAL SPOTLIGHT Federer shows no sign of slowing down Swiss ace races to victory in just 39 minutes, Nishikori powers past Tomic Sharapova and Ivanovic reach Brisbane final Reuters Brisbane R ussia’s Maria Sharapova and Ana Ivanovic of Serbia won their semi-п¬Ѓnals at the Brisbane International yesterday to set up a highly-anticipated showdown in the leadup to this month’s Australian Open. Sharapova beat the talented Ukrainian Elina Svitolina 6-1 6-3 to reach the п¬Ѓnal without dropping a set while Ivanovic battled her way to a 7-6(2) 6-4 victory over American Varvara Lepchenko. Sharapova beat Ivanovic in the 2008 Australian Open п¬Ѓnal and both women are in devastating form heading towards the п¬Ѓrst grand slam of the season, starting in Melbourne on Jan. 19. Sharapova has dropped just nine games in her three matches to get to the п¬Ѓnal and showed no mercy against Svitolina, a rising star who won the 2010 junior French Open, as she reached her 56th WTA п¬Ѓnal. “I expected her to play well. I think I did a lot of things good to try to take away her game,” Sharapova said. “In the end, it became a little bit more difficult. She became more free, went for her shots a little bit, a few unforced errors from my end, but overall I’m happy I stuck with it and п¬Ѓnished the last point.” Ivanovic, who came from a set down to win her previous match, once again had to dig deep before seeing off Lep- chenko after nearly two hours on the Pat Rafter Arena. Lepchenko twice served for the opening set but Ivanovic broke back both times then won the tiebreaker. In the second set, Ivanovic charged to a 5-1 lead before she got the wobbles, allowing Lepchenko to reel off the next three games before she п¬Ѓnally sealed the win on her seventh match point. “Deп¬Ѓnitely, (my) heart was racing a little bit, especially that it was really becoming a battle,” Ivanovic said. “Even though I was 5-1 up, still felt like a battle all the way through.” Ivanovic will be chasing her 16th WTA career title and her п¬Ѓfth in 12 months after she began her latest resurgence up the world rankings. Currently ranked seventh, the 27-yearold is looming as one of the favourites for the Australian Open. A former world number one who won her only grand slam title at the 2008 French Open, Ivanovic credits her return to form to п¬Ѓnally learning how to cope with fame. “I struggled to be in the spotlight. For me, this is something that took time to get used to because I was very shy,” she said. “It was really overwhelming for me and all the pressures. I always play tennis as a game and not all these pressures and expectations. I felt like I had no time to go to movies with friends, you know, and this is what every person needs. So I really feel since maybe year and a half I found this balance.” Roger Federer of Switzerland returns to Australia’s James Duckworth during their quarter-final match at the Brisbane International tournament yesterday. (EPA) Reuters Brisbane R Wawrinka in Chennai Open semis oger Federer sent a reminder to the young guns of men’s tennis that he is nowhere near close to riding quietly into the sunset when he romped to victory in just 39 minutes at the Brisbane International yesterday. The 33-year-old Swiss maestro produced a masterclass of shot-making as he thrashed Australian wildcard James Duckworth 6-0 6-1 to charge into the semi-п¬Ѓnals of the Australian Open warmup event. Federer’s amazing performance came just 24 hours after he struggled to see off John Millman, raising doubts about his form ahead of the п¬Ѓrst grand slam of the year. It was also stark evidence that he remains a major force in men’s tennis with an utterly dominant victory on the same day Japanese sensation Kei Nishikori led a trio of rising stars into the last four. Chennai: Twice champion Stanislas Wawrinka sailed into the Chennai Open semi-finals yesterday, staving off Gilles Mueller’s late challenge en route to a 6-2 7-6(4) victory. In their first ever meeting, Australian Open champion Wawrinka broke his opponent from Luxembourg in the opening game and pocketed the first set of the quarter-final quickly. Mueller, however, refused to throw in the towel and took a 4-2 lead in the second before Wawrinka rallied to level “I’m very happy actually. I saved energy and stress and nerves and everything because yesterday was quite nerve wracking and physically difficult because it was п¬Ѓrst match of the season,” Federer said. “I felt tired. This morning, I had muscle pain and all that stuff. So I’m very happy I it 4-4 and force a tie-breaker in which the Swiss world number four prevailed. “Gilles is a big-server, left, it’s tough returning but I’m happy,” Wawrinka, who meets fourth seed David Goffin in the semi-final, said in a courtside interview. “I was really aggressive and I’m happy the way I finished the match, the way I’m playing in general,” said Wawrinka who hit 29 winners, six more than his opponent. Spaniard Roberto Bautista will meet Slovenia’s Aljaz Bedene in today’s other semi-final. got it done quickly today.” Nishikori, still on a high after reaching the п¬Ѓnal of last year’s U.S. Open, continued his impressive build-up to Melbourne when he demolished Bernard Tomic 6-0 6-4. He was joined in the last four by Milos Raonic and Grigor Dimitrov, another two up-and-comers tipped to challenge the old order at this year’s majors. Raonic rode his booming serve to a 7-6(5) 3-6 7-6(2) win over Australia’s Sam Groth to set up a mouth-watering semiп¬Ѓnal clash against Nishikori. Dimitrov made light work of his quarter-п¬Ѓnal with Martin Klizan, defeating the Slovakian 6-3 6-4 to book an equally attractive encounter against Federer. Raonic and Dimitrov both made the semi-п¬Ѓnals at Wimbledon last year and while they stumbled against their more seasoned opponents they, along with Nishikori, have been earmarked as potential grand slam winners. Nishikori took less than an hour to brush past Tomic, who was also tipped for big things after reaching the quarters at Wimbledon as a teenager in 2011. “There was not a lot I could do,” the Australian told reporters. “That’s why he’s gotten to (number) п¬Ѓve in the world and potentially has a big chance of becoming a top-three player this year.” ROUND-UP Maria Sharapova of Russia exults after she won a point during her semi-final match against Elina Svitolina of Ukraine. (Reuters) FOCUS Williams faces Wozniacki for title Poland into Hopman Cup final to meet US Agencies Auckland V enus Williams powered into the п¬Ѓnal of the Auckland Classic yesterday 6-0 6-3 for the second straight year, setting up a title showdown among former number one players. The 34-year-old American will take on Caroline Wozniacki after the Dane booked a spot in a 38th WTA п¬Ѓnal with a 4-6, 6-3, 6-4 comeback win over Czech Barbora Zahlavova Strycova. Williams, who lost the 2014 п¬Ѓnal to Ana Ivanovic, is setting a record with every success as she plays in her 76th п¬Ѓnal. The American won her 45th title in February in Dubai; and another one in New Zealand would make her the fourth-oldest champion in WTA records. Williams stands 5-0 over Wozniacki, last autumn’s US Open п¬Ѓnalist. “She’s obviously a tough competitor. It won’t be easy, but I’m looking forward to it,” said Wozniacki. “I’m pleased to reach my п¬Ѓrst п¬Ѓnal of the year.” The Dane won 10 of the 13 games to take level by winning Caroline Wozniacki of Denmark beat Barbora Zahlavova Strycova of the Czech Republic in the semi-final in Auckland. (AFP) the second set against Zahlavova Strycova before sweeping the third for the semi-п¬Ѓnal victory. “It was all about staying in the match. I didn’t start off well, But I started playing better as it went on and I think she did too. I just had to kind of get going out there.” HALEP IN FINAL, KVITOVA KNOCKED OUT Top seed Simona Halep sailed into the WTA Shenzhen Open п¬Ѓnal yesterday and will face Timea Bacsinszky after the Swiss world number 47 upset double Wimbledon winner Petra Kvitova. Romanian Halep, ranked third in the world and last year’s French Open runner-up, disposed of unseeded home player Zheng Saisai in straight sets, 6-2, 6-3. But the scoreline belied the fact that the world number 97 put up enough resistance to draw the match out to an hour and 26 minutes. Czech Kvitova, the world number four and second seed at the $500,000 tournament, was favourite to go through in the other semi-п¬Ѓnal. But she was broken in the third game and although the 2011 and 2014 Wimbledon champion saved п¬Ѓve set points, Bacsinszky п¬Ѓnally clinched the п¬Ѓrst set. In the second set Kvitova had three break points in a long fourth game, but the 25-yearold Swiss, who had not reached a WTA п¬Ѓnal since 2010, held on and showed no nerves on match point, seizing her п¬Ѓrst opportunity to seal victory. The left-handed Kvitova was bidding to make her third п¬Ѓnal in China in a row, after winning the inaugural Wuhan Open and losing to Maria Sharapova in the decider of the China Open last autumn. AFP Perth P oland will face the United States in today’s mixed teams Hopman Cup п¬Ѓnal. The Polish team of Agnieszka Radwanska and Jerzy Janowicz qualiп¬Ѓed for the title decider with a 2-1 win over the French pairing of Alize Cornet and Benoit Paire yesterday. They will face the American duo of Serena Williams and John Isner in the п¬Ѓnal. Cornet kept France’s hopes of reaching the п¬Ѓnal alive with a brave three-set win over Radwanska in a performance inspired by her desire to honour her 12 countrymen killed in the Charlie Hebdo magazine attack on Wednesday. However, Janowicz then ensured the Poles would play in the п¬Ѓnal for the second successive year, his win over Benoit Paire in the men’s singles meaning Poland could not be dislodged from the top of Group B. Janowicz eventually beat the misп¬Ѓring Paire in straight sets, 6-4, 7-6 (8/6), after the Frenchman staved off four match points. Radwanska teamed with Grzegorz Panп¬Ѓl to reach last year’s п¬Ѓnal in the country’s Hopman Cup debut, but the Poles were beaten by France’s Cornet and Jo-Wilfried Tsonga. The Poles won the shortened doubles, with only a single set played, 6-4. Radwanska said she was looking forward to the chance to atone for last year’s loss in the п¬Ѓnal. “Hopefully this year we can win one more match,” she said. “But the USA are good players so it is going to be a tough one.” Earlier, п¬Ѓfth-ranked Radwanska and 18thranked Cornet produced the match of the tournament in an epic singles encounter that the Frenchwoman eventually won 6-4, 2-6, 7-5. Cornet, beaten in the singles by Radwanska in last year’s п¬Ѓnal, described it as one of the best wins of her career. With “Je Suis Charlie” written on her bag, the 24-year-old said she was horriп¬Ѓed by the Charlie Hebdo killings and was determined to honour the victims on the court. “Each time I was going to the chair I was seeing the message and it was coming to my mind,” she said. “I was thinking вЂ�you are here, you have the chance to do what you like and play in front of this amazing crowd, so just have fun and give everything and try to win for them’. It is a good thing, because I can bring even more this message when I win the match. For me it is very important because we have to be conscious that what happened is really, really bad and stay strong.” Great Britain beat Australia 3-0 in a tie that had no impact on the п¬Ѓnal. Andy Murray wrapped up an impressive week of singles ahead of the Australian Open with a 6-3, 6-3 win over Marinko Matosevic, while Heather Watson had her п¬Ѓrst singles win of the tournament against world number 29 Casey Dellacqua, 6-3, 6-4. Gulf Times Saturday, January 10, 2015 11 TENNIS QATAR EXXONMOBIL OPEN FERRER SETS UP BERDYCH SHOWDOWN IN DOHA вЂ�This match needed more concentration because with Karlovic, if you make one or two mistakes with your serve, you are out’ By Mikhil Bhat Doha L ike in the tournament so far, Ivo Karlovic was right up there with the number of aces yesterday. He served 30 of them in the Qatar ExxonMobil Open semi-п¬Ѓnal against Spain’s David Ferrer. But the Spanish fourth seed won crucial points off Croat’s errors in the third set tie-break to reach his п¬Ѓrst п¬Ѓnal in four Doha appearances. Ferrer beat his 6’11” opponent 6-7 (2) 7-6 (5) 7-6 (4) in a little over two and a half hours at the Khalifa International Tennis and Squash Complex Centre Court. While world number one Novak Djokovic grew increasingly frustrated not being able to win a break point in the previous round against Karlovic on Thursday, Ferrer handled his nerves well in crunch situations even as there were no service breaks in the entire match. “It was very difficult because Ivo is serving unbelievable this week. He surprised me with his second serve and it was not easy to return him. But the key was in the close points,” said Ferrer, whose best performance before coming to Doha this time round was a semiп¬Ѓnal appearance in 2013. “Mentally it was a tough match. I think in the п¬Ѓrst set he was better than me. Maybe I had more chance in the second. Third, it was very close. I think in important moments, I received better than him.” Even as Karlovic had more winners in the match at 67, to Ferrer’s 47, the Croat had 50 unforced errors. In the п¬Ѓnal tiebreak of the match, Ferrer made it 2-2 against his seventh seed opponent. On the next serve, Ferrer replied Karlovic’s backhand slice return with a shot into the net, giving the 35-yearold an opening considering he was serving next. Karlovic served, made it to the net like he had done 75-odd times before that, but this time Ferrer went right past him for a winner. Next, Karlovic was at the net again but went long to hand Ferrer a 4-3 advantage with the Spaniard set serve next. Ferrer made it 6-3 with Karlovic’s backhand slice and a forehand both going long. Karlovic did serve an ace next to make it to 4-6 and give himself a glimmer of hope, but Ferrer was able to handle his second serve well and went past him at the net to win the match-point. “I think this match needed more concentration than the other ones because with Ivo Karlovic, if you make one or two mistakes with your serve, you are out,” Ferrer said. RESULTS SINGLES SEMI-FINALS 4-David Ferrer (ESP) beat 7-Ivo Karlovic (CRO) 6-7 (2) 7-6 (5) 7-6 (4); 3-Tomas Berdych (CZE) beat Andreas Seppi (ITA) 6-2 6-3 ORDER OF PLAY Centre Court at 6pm: 3-Tomas Berdych (CZE) vs 4-David Ferrer (ESP) Ferrer was talking even as third seed Tomas Berdych was playing Italy’s Andreas Seppi in the other semiп¬Ѓnal. So asked about his preparation for the п¬Ѓnal, the Spaniard said, “Yesterday, I thought my opponent was Novak Djokovic, and it was surprise Ivo Karlovic. So I will see tomorrow. “Now, I want to rest, have a massage with my physio and be ready for tomorrow.” Ferrer will be preparing for Czech Republic’s Berdych, who posted his sixth straight win over Seppi with the streak starting at the 2008 Beijing Olympics. Seppi had won only twice in the eight matches the two had played before yesterday, but those wins were back in 2005 and 2008. Yesterday, Berdych took only 73 minutes to post a 6-2 6-3 win and make it to the п¬Ѓnal of the USD1.2 million tournament “So far it has been a pretty good week. I was feeling very good on the court. It is very important for me that the whole week went like that but it is not over yet and there is one more to go -- very important one. I am looking forward to it,” Berdych said after his match. Asked about whether he was relieved at not having to play Karlovic in the п¬Ѓnal, he said: “Well, no one from among us wants to play him because he is a very tough opponent. I have to say that I watched quite a bit of that match (Ferrer vs Karlovic) and Ivo played an incredible match. But it just shows how tough David is, п¬Ѓghting for each point. It is not going to be an easy п¬Ѓnal at all. “I am just going to get some good rest, and try and get my body in good shape. That’s all I can do for now. Tomorrow is another day, and I will have to get ready and bring my weapons back again and try to do it again.” While Ferrer leads the head-to-head record 7-5, Berdych has won the last two matches the pair have played against each other. The Czech third seed beat his Spanish opponent 6-4 6-4 in the round robin stage of the ATP World Tour Finals in 2013 before winning the 2014 Australian Open quarterп¬Ѓnal 6-1 6-4 2-6 6-4. David Ferrer of Spain celebrates after he beat Croatia’s Ivo Karlovic to reach the Qatar ExxonMobil Open final, yesterday. PICTURES: Jayan Orma Third seed Tomas Berdych essays a forehand en route to his win over Italy’s Andreas Seppi in the semi-final at the Khalifa International Tennis and Squash Complex. SPOTLIGHT Nadal-Monaco win Qatar ExxonMobil Open doubles title By Mikhil Bhat Doha H Rafael Nadal (left) and his partner Juan Monaco won the doubles final beating the Austrian pair of Philipp Oswald and Julian Knowle 6-3 6-4. PICTURE: Jayan Orma e may have lost in the opening singles round at Qatar ExxonMobil Open, but Rafael Nadal is not heading out of Doha without a trophy. The Spaniard, along with Argentine partner Juan Monaco, won the doubles п¬Ѓnal beating the Austrian pair of Philipp Oswald and Julian Knowle 6-3 6-4 at the Khalifa International and Tennis Complex yesterday. The title is Nadal’s fourth doubles title in Doha while ninth doubles crown overall. For Monaco, this was his third doubles title. “It is an amazing feeling playing here in Doha. Unfortunately I lost early in the singles but I fortunately I played in doubles with a friend here and we played really well. I am really happy. Hopefully I can come here next year and play again with my friend,” said Monaco, who signed off as вЂ�Raп¬Ѓco’ (combining their nicknames Rafa and Pico) on camera after the match. “Last time we played together was in Chile but we lost. Here we had an opportunity again and it is a special feeling now to win a tournament with a good friend.” Nadal added: “I started the season with a title, even if it is doubles, and it is a great feeling playing with one of my best friends on the tour. Thanks to Juan. Thanks to Doha for supporting us, (QTF president) Nasser (Ghanim al-Khelaiп¬Ѓ), (tournament director) Karim (Alami), sponsors, and everyone who make possible the event which is one of the best on Tour for us. Hope to see you all next year and I hope to play better in singles too.”
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