Business

TUNIS — Tunisia's powerful UGTT union called another national strike for January to press its demand for higher wages after the government said on Saturday it would seek a realistic pay deal.

About 650,000 public sector workers went on strike and thousands joined protests across Tunisia on Thursday over the government's refusal to raise wages amid threats from international lenders to stop financing Tunisia's tattered economy.

Raising the pressure on the government the UGTT approved plans for a nationwide strike that include public employees and state companies on January 17.

Prime Minister Youssef Chahed conceded that pay was an issue, but added that any agreement must take into account the public finances.

"There is a real problem in the decline in purchasing power and high inflation and the decline of public services... These will be our priorities in the next period," Chahed told parliament.

The government had said it does not have the money to pay for the increases strikers want, worth about 2 billion Tunisian dinars ($690 million) in total.

Under pressure from the International Monetary Fund and a deepening political crisis, Chahed is battling to cut the budget deficit to about 4.9 per cent of GDP this year and 3.9 per cent in 2019 from 6.2 per cent last year.

His unpopular reforms include cuts to the public sector, state companies and fuel subsidies.

The 2011 uprising was sparked by anger at unemployment and poverty and record levels of inflation. 

The state Institute of Strategic Studies says real purchasing power has fallen by 40 per cent since 2014. 

BEIJING — China rejected fresh US accusations of perpetuating "unfair" trade practices and urged Washington on Thursday to stop making provocations, showing little sign of backing down days ahead a high-stakes meeting between leaders from both countries.

President Xi Jinping is due to hold talks with US President Donald Trump during a G-20 summit in Argentina at the end of the month, with the rest of the world hoping they can find a way to de-escalate a trade war that is threatening the global economy. 

China's commerce ministry said it is deeply concerned by a report issued by the US administration this week, which said China had failed to alter its "unfair" practices. 

"The US side made new groundless accusations against the Chinese side, and China finds it totally unacceptable," Commerce Ministry spokesman Gao Feng told reporters at a news conference in Beijing.

The findings were issued in an update of the US Trade Representative's "Section 301" investigation, which looks into China's intellectual property and technology transfer policies and has sparked US tariffs on $50 billion worth of Chinese goods that later ballooned to $250 billion. 

Gao said the report reflects US unilateralism in violation of World Trade Organisation rules.

"We hope the United States will drop the words and behaviours that damage bilateral economic and trade relations and adopt a constructive attitude," Gao said.

The ministry is also evaluating the potential impact from a separate US proposal this week to increase control over technology exports, and said it would take the necessary steps to uphold Chinese firms' legitimate interests.

Citing security concerns, the US government on Monday proposed stepping up scrutiny over technology exports in 14 key high-tech areas including artificial intelligence and microprocessor technology, a move that many analysts view as directly targeting China. 

A 30-day public consultation period on the proposal to include those sectors in its broader export control regime is under way and will end on December 19, according to a document published on the US government's Federal Register on Monday.

"We are evaluating the measures that the United States may take," Gao said, stressing that Washington's generalisation of the concept on national security would only result in unnecessary barriers and damage trade.

"China will pay close attention to the relevant US legislation and take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises as appropriate," he said.

Washington is demanding Beijing to improve market access and intellectual property protections for US companies, cut industrial subsidies and slash a $375 billion trade gap. Trump has imposed tariffs on $250 billion of Chinese imports to force concessions.

The US tariff rate on $200 billion in Chinese goods is set to increase to 25 per cent from 10 per cent on January 1. Trump has threatened to impose tariffs on all remaining Chinese imports — about $267 billion more in goods — if Beijing fails to address US demands.

PARIS/TOKYO — France stood by embattled Renault boss Carlos Ghosn on Wednesday, saying it wanted evidence from industry partner Nissan to support misconduct allegations against him, and added that both Paris and Tokyo wanted a stable carmaking alliance.

While Japan took a similar line, saying it was keen for stability in the Nissan-Renault partnership following Ghosn’s arrest, a Nissan executive said the Japanese automaker was seeking ways to weaken the influence of its French partner.

The 19-year alliance, enlarged in 2016 to include Japan’s Mitsubishi Motors, has been rattled to its core by Ghosn’s shock arrest in Japan on Monday, with the 64-year-old group chairman and industry star accused of financial misconduct. 

Ghosn, a Brazilian, Lebanese and French citizen, has personally shaped the alliance and pledged to consolidate it with a deeper tie-up, one not all parties were convinced by. 

“We need to return to the original idea of a win-win relationship,” a long-time Nissan executive told reporters at an organised briefing, speaking on condition of anonymity. It should be “a more equal relationship than before”.

As well as geography and culture, the ties among the companies are complicated by the role of the French state. 

The French government holds 15 per cent of Renault, which in turn owns 43.4 per cent of Nissan. The Japanese company holds a non-voting 15 per cent stake in Renault and a 34 per cent share of Mitsubishi Motors.

The Nissan executive said a reduction of Renault’s stake in Nissan — which recovered from near-bankruptcy after Ghosn took its helm and is now more profitable than its French partner —should be one option under consideration.

In Japan, there is concern that France is ultimately seeking to take control of Nissan and Mitsubishi. In France, there are suspicions that Ghosn may have been targeted so as to hinder French influence. Trust has been undermined on both sides.

“There is a feeling of crisis at the ministry of economy, Trade and Industry that at this rate Nissan and Mitsubishi will be seized by the French government,” said a senior source familiar with Japanese government thinking. 

In Paris, French Finance Minister Bruno Le Maire sought to ease the tensions, saying stability remained critical for both France and Japan. He said he wanted to see the evidence against Ghosn before reaching conclusions, and added that he would meet his Japanese counterpart on Thursday for talks. 

“At this stage, we do not have any evidence to support the accusations against Mr Carlos Ghosn,” Le Maire told reporters. “I would like to emphasise the Renault board’s request that Nissan share all the evidence available to it.”

Nissan has said it will fire Ghosn as chairman on Thursday.

Renault on Tuesday tapped its chief operating officer and a senior board member to fill in for Ghosn, but the board refrained from ousting him while waiting for details on the allegations — a decision that could buy more time for an accelerated, permanent succession process.

Auto tumult

One of the world’s best-known auto industry executives, Ghosn bestrode the alliance, serving also as chief executive of Renault and chairman of Mitsubishi Motors, although he often said that his efforts to drive integration were hampered by the French government’s stake in Renault.

On Monday, Nissan CEO Hiroto Saikawa portrayed Nissan as a victim of Ghosn’s alleged misdeeds. But Nissan itself faces scrutiny over the financial misconduct case, with the Asahi newspaper reporting on Wednesday that prosecutors were weighing bringing a case against the Japanese automaker.

With Ghosn potentially gone from the picture, the future shape of the alliance is the subject of intense investor speculation. Mitsubishi Motors CEO Osamu Masuko said on Tuesday it may be hard to manage without the unifying figure of Ghosn.

On Wednesday, Renault shares rose 1.3 per cent after falling more than 9 per cent this week. Nissan closed up 0.4 per cent after falling nearly 6 per cent a day earlier. Mitsubishi Motors closed down 1 per cent after losing nearly 7 per cent on Tuesday. 

The success of the alliance, which helps the automakers develop products and control costs, is critical for the members at a time when the industry is buffeted by major changes in consumer tastes and rivals are investing billions in new growth areas like automated and internet-connected vehicles.

Given those considerations, the Japanese and French governments have backed the alliance.

It “is a symbol of Franco-Japanese industrial success”, the top Japanese government spokesman said, calling for a “stable relationship” among the three automakers.

Whistleblower 

Nissan said on Monday an internal investigation triggered by a tip-off from a whistleblower had revealed that Ghosn engaged in wrongdoing, including personal use of company money and under-reporting for years how much he was earning.

Ghosn was arrested by Japanese prosecutors who said he and Representative Director Greg Kelly conspired to understate Ghosn’s compensation at Nissan over five years from 2010, saying it was about half the actual 10 billion yen ($89 million).

Ghosn and Kelly, who has also been arrested, have not commented on the accusations and Reuters has not been able to reach them. Kyodo News reported on Wednesday that the Tokyo District Court has decided Ghosn and Kelly would be detained for a further 10 days.

Japan’s Nikkei business daily reported on Tuesday that Ghosn had received share price-linked compensation of about 4 billion yen over a five-year period to March 2015, but that it went unreported in Nissan’s financial statements. 

Prosecutors also plan to interview Saikawa on a voluntary basis, NHK reported on Wednesday citing unidentified sources.

Prosecutors were not immediately able to comment. A Nissan spokesman declined to comment.

LONDON — Bitcoin tumbled as much as 10 per cent on Tuesday to below $4,500, bringing the world's best-known cryptocurrency's losses to 30 per cent within a week as a sell-off in digital currencies intensified across the board.

Other cryptocurrencies also skidded sharply, with Ethereum's ether losing 10 per cent and Ripple's XRP down 13 per cent in a largely sentiment-driven slide.

The latest move lower started this month after a period of relative stability, with prices of bitcoin having hovered around the $6,500 mark for several months.

"The euphoria has died and prices have consolidated with lower lows and lower highs. A lot of people have lost interest," said Fawad Razaqzada, an analyst at Forex.com.

Tuesday's falls coincided with broader drops in financial markets. European shares weakened following a big fall on Wall Street. 

As well as a general decline in investor confidence in the value of cryptocurrencies, some traders have also blamed the recent drop on fears that a "hard fork" in bitcoin cash, where the smaller coin that split into two separate currencies, could destabilise others.

Bitcoin was trading on Tuesday at $4,354.20, its lowest level on the Bitstamp exchange since October, 2017.

Bitcoin has now lost about 75 per cent of its value since peaking in December. 

A regulatory clampdown on cryptocurrency trading in early 2018 and a drop in investor interest has sent people scrambling for the exit. 

Cryptocurrency advocates say price volatility is to be expected, and that the need for virtual currencies which operate outside the mainstream banking system will outlast any short-term price falls.

The second and third largest cryptocurrencies, XRP and ether, were trading at $0.4451 and $133 respectively on the Luxembourg-based Bitstamp exchange.

According to industry tracker Coinmarketcap.com, the total market capitalisation of virtual currencies is now below $150 billion, down from around $800 billion in January.

AMMAN — A trade delegation from the Republic of Korea on Monday explored the possibility of increasing business cooperation with their Jordanian counterparts, according to a statement of the Korea Business Centre in Amman.

The delegates, comprising representatives of seven Korean companies, met in Amman with Jordanian businessmen who have an interest in the Korean products and industries, the statement said.

The visiting delegates are manufacturers and exporters of power and electricity products.

Their manufactured and exported products include ignition output voltage devices for power plants, wind power and automation industries couplings, gas leak detectors and smart power pipe management systems, in addition to water treatment equipment.

During the visit, the delegation got acquainted with the Jordanian business environment.

Jordan has a stable business climate and modern legislation that work to stimulate and encourage economic activity, the statement said.  

The meetings are expected to result in trade partnerships and deals that promote economic and investment relations between the Kingdom and the Republic of Korea, according to the statement.

This visit, organised by the Korea Business Centre in Amman, is in line with the distinguished bilateral relations between the two countries. 

The Korea Business Centre, known as Kotra, works to promote trade and investment cooperation between Jordan and the Republic of Korea.

CAIRO — Egypt is looking to use its vast, newly tapped undersea gas reserves to establish itself as a key energy exporter and revive its economy.

Encouraged by the discovery of huge natural gas fields in the Mediterranean, Cairo has in recent months signed gas deals with Israel as well as Cyprus and Greece.

Former oil minister Osama Kamal said Egypt has a “plan to become a regional energy hub”.

In the past year, gas has started flowing from four major fields off Egypt’s Mediterranean coast, including the vast Zohr field, inaugurated by Egypt’s President Abdel Fattah Al Sisi.

Discovered in 2015 by Italian energy giant Eni, Zohr is the biggest gas field so far found in Egyptian waters.

The immediate upshot has been that since September, the Arab world’s most populous country has been able to halt imports of liquified natural gas, which last year cost it some $220 million (190 million euros) per month.

Coming after a financial crisis that pushed Cairo in 2016 to take a $12 billion loan from the International Monetary Fund, the gas has been a lifeline.

Egypt’s budget deficit, which hit a record 103 per cent of gross domestic product in the financial year 2016-17, has since fallen to 93 per cent.

Gas production has now hit 184 million cubic metres a day.

Having met its own needs, Cairo is looking to kickstart exports and extend its regional influence.

It has signed deals to import gas from neighbouring countries for liquefaction at installations on its Mediterranean coast, ready for reexport to Europe.

 Israel, Cyprus deals 

In September, Egypt signed a deal with Cyprus to build a pipeline to pump Cypriot gas hundreds of kilometres to Egypt for processing before being exported to Europe.

Then in February, Egypt, the only Arab state apart from Jordan to have a peace deal with Israel, inked an agreement to import gas from Israel’s Tamar and Leviathan reservoirs.

A US-Israeli consortium leading the development of Israel’s offshore gas reserves in September announced it would buy part of a disused pipeline connecting the coastal city of Ashkelon with the northern Sinai Peninsula.

That would bypass a land pipeline across the Sinai that was repeatedly targeted by militants in 2011 and 2012.

The $15-billion deal will see some 64 billion cubic metres of gas pumped in from Israel fields over 10 years.

Ezzat Abdel Aziz, former president of the Egyptian Atomic Energy Agency, said the projects were “of vital importance for Egypt” and would have direct returns for the Egyptian economy.

They “confirm the strategic importance of Egypt and allow it to take advantage of its location between producing countries in the east and consuming countries of the West”, he said.

Petro-processing dollars 

The Egyptian state is also hoping to rake in billions of dollars in revenues from petro-chemicals. 

Its regional energy ambitions are “not limited to the natural gas sector, but also involve major projects in the petroleum and petrochemical sectors”, said former oil minister Kamal.

Minister of Petroleum and Mineral Resources Tarek El Molla recently announced a deal to expand the Midor refinery in the Egyptian capital to boost its output by some 60 per cent.

On top of that, the new Mostorod refinery in northern Cairo is set to produce 4.4 million tonnes of petroleum products a year after it comes online by next May, according to Ahmed Heikal, president of Egyptian investment firm Citadel Capital.

That alone will save the state $2 billion a year on petrochemical imports, which last year cost it some $5.2 billion.

Egypt is also investing in a processing plant on the Red Sea that could produce some four million tonnes of petro-products a year — as well as creating 3,000 jobs in a country where unemployment is rife.

NEW YORK — The pound rebounded against the dollar on Friday, a day after a severe shellacking, as some investors were willing to bet on British Prime Minister Theresa May getting a controversial Brexit draft deal through parliament, dealers said.

Even as dark clouds continued to gather over the prime minister’s political future, many felt she might just get enough support for what she called “the best deal for Britain”, they said.

“The pound is holding on to its early Friday morning gains, on the back of UK PM May’s radio interview in which she said her deal was the best Brexit compromise the UK could achieve”, said Dean Popplewell, an analyst at Oanda.

In the late European afternoon, the pound was up around 0.6 per cent against the dollar, off earlier highs, but slightly down against the euro.

The British currency slumped 1.7 per cent against the dollar on Thursday, the biggest daily drop for more than two years.

But analysts warned that the outlook for the British currency’s trajectory was uncertain.

‘Short-lived’ 

“Stability in the pound... could be short-lived, with clamors for a vote of no confidence from Conservative Brexiteers meaning the political upheaval will continue as we end the week,” said Joshua Mahony, market analyst at IG trading group.

Meanwhile in European stock markets, Brexit fears kept prices down, with banking shares particularly under pressure “over concerns of a disorderly UK exit from the European Union”, said analysts at Charles Schwab.

Elsewhere, Wall Street eked out a split finish — reversing some earlier losses following hopeful comments on trade from US President Donald Trump — but still finishing the week sharply lower after a string of earlier losses.

Trump gave the major stock indices a bump in early afternoon, announcing that Beijing had made overtures toward resolving the US-China trade war so he might not need to impose yet more tariffs.

In New York, oil prices also ended lower for the sixth straight week but benchmark WTI crude was flat.

Exxon Mobil added 1 per cent while fellow Dow member Chevron grew 1.8 per cent.

“Oil and gas stocks are doing well, because oil prices are off their lows. We seem to have found a floor in that sector,” Chris Low of FTN told AFP.

Asian stock markets earlier swung throughout Friday’s session as investors weighed China-US trade speculation.

Trump said China offered a list of trade concessions as part of a move to smooth relations ahead of a G-20 summit where he is expected to meet Chinese President Xi Jinping.

The Financial Times said the two sides were stepping up efforts and that US Trade Representative Robert Lighthizer had told business leaders the next round of tariffs would be put on hold. While Lighthizer’s office denied that, observers said the news still provided some hope.

WASHINGTON — Global retail giant Walmart is more upbeat about earnings for the year, despite tamping down expectations just a month ago, after posting sales growth across all its business lines and most regions on Thursday.

The company has been buffeted by investments and sell-offs as it tries to position the chain to compete in the changing and competitive retail and ecommerce sector.

"Each of our segments achieved solid sales growth," Walmart chief Doug McMillon said.

Just a month ago, the retailer trimmed its profit forecast for the year, but with improving sales and increased traffic in its stores, the company said total revenue jumped 1.4 per cent in the third quarter to $124.9 billion.

At the same time, the key metric of comparable store sales — those at existing outlets rather than new stores — rose 3.4 per cent in the US, as customer traffic rose 1.2 per cent in the three months ended October 26.

"Overall, we're encouraged by the momentum in our business and excited to be in a strong position to invest for the future as prior investments pay back," McMillon said in a statement.

The solid sales growth pushed the closely-watched earnings per share measure to $1.08 in latest quarter, beating expectations.

The company raised its estimate of fiscal year 2019 EPS by 10 cents to $4.75 to $4.85, just a few weeks after lowering the estimate following the acquisition of India's online retailer Flipkart. 

Company executives said the investment, like others in ecommerce, home grocery delivery and curbside pickup, have been key to keep the store competitive.

The chain now has 2,100 grocery pickup locations and is increasing delivery options so that "by the end of the year we'll cover about 40 per cent of the population with delivery through about 800 stores".

In addition, the chain saw sales growth "in nine of our 10 markets, including our four largest markets: Mexico, China, Canada and UK", according to the statement.

Walmex in Mexico led the way with an increase of 5.4 per cent in the quarter, while sales in China rose 2.2 per cent.

Investors seemed to be cheering the news initially, but by midday Walmart shares had retreated 2.2 per cent making it one of the biggest losers in the benchmark Dow Jones Industrial Average.

Chief financial officer Brett Biggs told reporters the US-China trade tensions with steep tariffs on $250 billion in Chinese goods is something the firm "will manage through", regardless of what happens.

SINGAPORE — Substantial progress has been made on hammering out a China-backed trade deal, Singapore's leader said on Wednesday, driving ahead the world's largest commercial pact which the United States is excluded from.

World leaders gathered in the tropical city state this week for a summit where a massive Beijing-backed agreement covering half the world's population has dominated discussions.

Diplomats have been trying to nail down details as Beijing entices its neighbours to join a commercial alliance seen as an antidote to President Donald Trump's "America First" protectionist trade policy.

The US has imposed tariffs on roughly half of what it imports from China, prompting Beijing to retaliate with its own levies.

Beijing's leaders have recast themselves as the defenders of global commerce — with the United States under Trump relegated to the sidelines.

China, Japan and India are among 16 Asia-Pacific countries negotiating the Regional Comprehensive Economic Partnership (RCEP).

"Substantial progress has been made this year to advance the RCEP negotiations," Singaporean Prime Minister Lee Hsien Loong said on Wednesday, adding talks were now "at the final stage".

"With the strong momentum generated this year, I am pleased to note that the RCEP negotiations are poised for conclusion in 2019," he added.

But he cautioned any further delays could risk "losing credibility" for a deal — which has already taken six years to negotiate. 

Trump absent 

This week's meetings are the biggest in a series of annual gatherings organised by regional bloc the Association of Southeast Nations (ASEAN), and are attended by 20 leaders.

RCEP was given extra impetus after US President Donald Trump pulled the US out of the rival Trans-Pacific Partnership (TPP) in early 2017.

That deal was spearheaded by his predecessor Barack Obama and aimed to bind fast-growing Asian powers into an American-backed order to counter China.

The TPP is still alive even without Washington — and will come into effect in December — but RCEP, if realised, will be the world's biggest trade deal.

However, the Beijing-backed pact is much less ambitious than the TPP in areas such as employment and environmental protection.

Beijing had hoped to have the meat of the deal done by the end of this year, but the timetable has now slipped to 2019. 

However, this has not stopped Chinese leaders from basking in the progress already made. 

During a meeting with Southeast Asia leaders, Chinese Premier Li Keqiang said he was hopeful talks would "break through the ceiling" and take regional trade "to new heights".

Trump is not at the Singapore summit, nor will he attend a subsequent gathering of world leaders in Papua New Guinea at the end of the week, having sent Vice President Mike Pence instead.

TAIPEI/SEOUL — Shares in Asian suppliers and assemblers for Apple Inc. fell on Tuesday after several component makers warned of weaker than expected results, leading some market watchers to call the peak for iPhones in several key markets.

Following a poor forecast earlier this month, analysts and investors voiced concern over the state of Apple's business, contributing to growing worries that iPhone sales were stagnating and could hurt suppliers.

Fresh warnings on Monday from screen maker Japan Display Inc., British chipmaker IQE Plc. and Lumentum Holdings Inc., the main supplier of the Face ID technology in the latest generation of iPhones, hurt technology stocks in Asia on Tuesday.

Taiwan-based assembler Hon Hai Precision Industry Co. Ltd. (Foxconn) dropped more than 3 per cent. Rival Pegatron Corp fell more than 5 per cent but later recouped losses. Both companies count Apple as a major customer. 

The world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co., fell 2.6 per cent, while Flexium Interconnect Inc. was down 1.5 per cent. The Taiwan Weighted Index was down around 1.6 per cent.

"Apple's iPhone weakness has been a long-term issue for the Asia supply chain," said Arthur Liao, an analyst at Fubon Research in Taipei. 

"For Apple, the iPhone shipment has reached its peak. For tech suppliers facing the future, they have no other big client like Apple." 

The Cupertino, California-based tech giant's shares fell to their lowest level in more than three months on Monday. 

Last week, a media report saying the iPhone maker had told its smartphone assemblers to halt plans for additional production lines dedicated to its new lower-priced iPhone XR had pressured supplier stocks.

Analysts said the lack of technological breakthroughs had put a cap on demand, which would persist in the coming quarters.

"With no new technology in sight next year for the supply chain, this is not ideal for the companies involved," said Nicole Tu, a Taipei-based analyst at Yuanta Investment Consulting.

"Up through the first half of 2019 we likely won't see any breakthrough." 

Lumentum on Monday slashed its profit and revenue forecast for the current quarter, while IQE warned that current-year results would be lower. Japan Display lowered both sales and margin outlook for the year as well.

No confidence

Apple warned earlier this month that holiday sales would miss Wall Street expectations due to weakness in emerging markets including India and foreign-exchange costs.

Among other Apple suppliers in Asia, Hong Kong-based acoustic components maker AAC Technologies Holdings Inc. slumped more than 6 per cent. 

South Korean electronic parts suppliers Samsung Electro-Mechanics Co. Ltd., Apple's supplier of multi-layer ceramic capacitors, dropped more than 5 per cent, while LG Innotek Co. Ltd. plunged 9.5 per cent.

Apple said earlier this month it would stop giving the number of iPhones, iPads and Mac computers it sold in a quarter, a closely watched metric and a key indicator of the company's success.

The move led analysts to question the company's business and its share price has since dropped 12.6 per cent.

"[This] indicates that the company itself is not confident about its performance at the moment," said Park Jung-hoon, a fund manager at HDC Asset Management, which owns Samsung Electronics shares.

"Although Apple has positioned itself as a super-expensive handset maker providing high-end products, its strategy has not been working in emerging markets, including China and India as Chinese vendors have been making iPhone-like products," he said.