Business

TUNIS — The Libyan dinar has dipped to new lows on the parallel exchange market, despite a pledge from the UN -backed government and the central bank to protect its value and tackle urgent economic challenges.

One black-market currency trader told Reuters that $1 was buying more than 6.5 dinars in Tripoli on Monday, having passed 6 dinars for the first time in recent days. The official rate is 1.4 dinars to the dollar.

The widening black-market premium is seen as a sign of the erosion of confidence in the Government of National Accord (GNA), which has struggled to make an impact since arriving in Tripoli in March.

Power brokers in Libya's east have withheld their support from the GNA while frustration in the west has built over the government's inability to deal with chronic insecurity, collapsing public services, steep inflation and a liquidity crisis.

The government is struggling to overcome five years of turmoil since the overthrow of former leader Muammar Qadhafi in 2011 led to competing power bases and allowed militants to take over pockets of the country.

Some ministers have not taken up their posts and the GNA's leadership, or Presidential Council, has been at loggerheads with the Central Bank of Libya (CBL) over the disbursement of public funds and economic policy.

At a meeting in Rome last week, the council set itself a deadline of December 1 to decide on a package of decisions to address the economic crisis, with the council and central bank pledging to "continue to co-operate on steps to support the Libyan dinar".

The CBL agreed late last month to make 8.6 billion dinars ($6 billion) available to the council, and the Rome meeting was attended by a newly named deputy finance minister who is meant to smooth the release of funding. The council is expected to agree an emergency budget for 2017 within a month.

But the mechanics and approval of expenditure have been hard to negotiate, and the CBL and the council remain split over devaluing the dinar and cutting subsidies to reduce Libya's deficit, according to diplomats briefed on discussions.

"There's full recognition that devaluation is a necessary step on the way to economic recovery," said one Western diplomat. "There are two questions, one is timing and the second is who's going to take the rap."

Further complicating the situation are splits within the council, whose nine members were selected in an attempt to unite factions that had backed rival governments in Tripoli and the east since 2014.

Those associated with factions based in eastern Libya have criticised recent international efforts to mediate the crisis and Fathi Al Majbari, the council member who has held the financial brief, refused to take part in the Rome gathering or a previous meeting in London.

OPEC member Libya is highly dependent on oil sales, but reduced output and falling prices have slashed revenues to a fraction of former levels. Oil production has recently doubled to about 600,000 barrels per day (bpd), but remains well below a high of 1.6 million bpd.

The country remains beset by insecurity, including in Tripoli, where rival militias that have retained power on the ground have been involved in fresh skirmishes since Friday.

LONDON — Facebook on Monday became the latest US tech giant to announce new investment in Britain with hundreds of extra jobs but hinted its success depended on skilled migration after Britain leaves the European Union.

The premier social network underlined London's status as a global technology hub at a British company bosses' summit where Prime Minister Theresa May sought to allay business concerns about Brexit.

"London is absolutely a global hub for technology," Nicola Mendelsohn, Facebook's vice president for Europe, the Middle East and Africa told the Confederation of British Industry (CBI) conference.

Mendelsohn said Facebook would open its new headquarters in the British capital next year, taking its UK workforce to 1,500 from around 1,000 now.

"It's a place where, frankly, our engineers want to come and work," she said, stressing that the company had staff from 65 nationalities working in London.

"The movement of talent is something that obviously matters to us," she said, although she added it was "too early to say" what effect Brexit could have.

Facebook's announcement comes one week after Google confirmed it would expand its vast London campus in a move that could bring 3,000 more jobs to the city.

Apple earlier this year also said it would create a new London headquarters in the iconic and long-abandoned Battersea Power Station in 2021.

May hailed the investments in her speech to the CBI saying she wanted Britain to be "the global go-to place for scientists, innovators and tech investors”.

She also promised extra funds for research and development, as well as aiming for an "early agreement" on the status of EU nationals working in Britain after Brexit — a key concern for businesses.

'Envy of Europe' 

London Mayor Sadiq Khan welcomed Facebook's announcement as "further evidence that London's strength as a tech hub keeps on growing".

"The capital's vibrant tech scene is the envy of Europe and Facebook's continuing commitment is another sign that London is open to talent, innovation and entrepreneurship from all four corners of the world."

Facebook last month unveiled an intra-office network called "Workplace" — its first launch outside the US and a product developed entirely in Britain.

Last Tuesday, Google revealed it will add a new office building to a complex currently under development behind London's King's Cross Railway Station.

A total of 7,000 Google staff will eventually be working at the hub, which is set to open in 2018.

Google's Chief Executive Sundar Pichai told the BBC he would "worry" if controls on skilled migration were made more stringent following Brexit.

He said London was a place "where people are willing to come from anywhere in the world.

"Increasingly, for the kinds of complex things we do, we need to bring people who are across many disciplines — with many different backgrounds — together to solve problems," he said.

A report earlier this month by Nesta, a British innovation charity, and the European Digital Forum found London was the best city in Europe for digital start-ups, with Stockholm coming in a close second.

The European Digital City Index analysed the 28 EU capitals, weighting cities on scores including business environment and digital infrastructure.

"Government must continue to invest in digital skills and digital infrastructure as well as addressing the cost of office space," said Chris Haley, Nesta's head of start-up and new technology research.

Of course, it also remains to be seen how a “hard Brexit” will have an impact on the UK's business allure for digital start-ups, given that access to markets is also hugely important, he said.

European leaders have warned Britain that its plans to restrict migration from the European Union while maintaining access to European markets for British companies are incompatible and have warned this will lead to a "hard Brexit". 

AMMAN — The Jordan Strategy Forum “Investor Confidence Index” has increased for the first time since March by 0.24 points, reaching 91.44 points in August compared to 91.2 points in July, according to a statement of the forum. 

The monthly-issued index published by the forum seeks to measure the confidence of investors operating in the Jordanian market through three aspects: confidence in the Jordanian currency and monetary system, confidence in the real economy, and confidence in the Amman Stock Exchange (ASE).

According to the forum, the confidence in the real economy sub-index rose by 2.62 points in August 2016, the highest since the beginning of this year, reaching 105.47 points, according to a statement of the forum. 

The number of registered companies increased to reach 785 compared to 442 companies in the previous month, accompanied with an increase in the capital of the registered companies which reached JD13.9 million compared to JD5 million in July.

The manufacturing quantity production index increased by 6 points to reach 170.89 points as a result of an increase in the production index for all  sectors.

Although the number of construction permits increased in August 2016 to 2810 in comparison to 2235 permits in the previous month, tax on the monthly real estate volume decreased to JD10.1 million from JD12 million in July 2016. 

Sub-indices drop

Confidence in the monetary system sub-index dropped 0.84 points to 90.35 points in August from 91.2 points in July 2016. The change was attributed to a slight decrease in CBJ’s foreign reserves, which reached JD11,836 million in August.

The confidence in the Amman Stock Exchange (ASE) sub-index dropped by 1.54 points during the stated month, settling at 95.62 points in comparison to 97.12 points in the previous month. This is due to decreases in both the ASE index and the amount of foreign investment in it. 

AMMAN — Central Bank of Jordan (CBJ) Governor Ziad Fariz on Sunday said Jordan has been able to avoid many economic risks, thanks to the CBJ's monetary policy. Fariz made the remark during a meeting with a delegation from the Amman Group for Future Dialogues, the Jordan News Agency, Petra, reported.

Highlighting the financial tools that the CBJ uses to serve its client base, he cited the CBJ’s bill payment and other banking services. The CBJ policy led to further saving by the Jordanian currency compared to those by foreign currencies, he said, adding that the CBJ’s foreign currency reserves currently stands at $13.1 billion. This is sufficient to cover the Kingdom’s imports of goods and services for three to seven months, he told the delegates.

SAN FRANCISCO — Facebook's board of directors on Friday authorised spending as much as $6 billion to buy back shares in the leading social network.

The stock repurchase programme would go into effect at the start of next year, potentially allowing Facebook to take advantage of a price dip triggered early this month by word that revenue growth will slow because the company has hit a limit on how many ads it can pack onto pages.

"The timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities," Facebook said in a filing with the US Securities and Exchange Commission.

The plan is part of Facebook's strategy to focus on long-term business growth, according to the filing.

Facebook shares, which ended the formal trading day down less than a per cent, rose slightly to $118.25 in after-market trades.

The share buyback could help soothe the hearts of investors after a tumultuous period for Facebook.

Shares tumbled early this month after the social network delivered a blockbuster quarterly earnings report, but also warned that its stunning growth is set to slow.

The company joined other large tech stocks in another tumble less than a week later because of worries about policy changes and protectionism under the administration of President-elect Donald Trump.

The social network then found itself at the centre of a debate about whether it aided Trump's surprise victory by allowing false news stories to be shared unchecked.

Facebook also accidentally declared its founder Mark Zuckerberg and many other users dead this month, acknowledging — after fixing the problem — that it had committed a "terrible error" with a feature designed to memorialise accounts.

Facebook this week also said it is working to fix flaws in its metrics calculations that sometimes caused them to overestimate the social network's audience.

It was the second time in months that the company has acknowledged problems with assessing the reach of its content, a key factor for luring crucial advertising.

While Facebook has become a dominant player in online advertising and especially strong in mobile, it remains unclear whether the company can maintain momentum as it shifts into new areas such as virtual reality.

DUBAI/ DOHA — Iranian Oil Minister Bijan Zanganeh expressed optimism on Saturday about an upcoming Organisation of Petroleum Exporting Countries (OPEC) meeting and said crude prices could jump to $55 a barrel if an agreement is reached and non-OPEC producers cooperate.

"We are receiving positive signals that increase the likelihood of agreement at the meeting... and I'm optimistic about the situation," Zanganeh told state television by telephone, after meeting OPEC Secretary General Mohammed Barkindo in Tehran ahead of the November 30 meeting.

"I think if we can reach an agreement, God willing, the price would rapidly reach above $50 per barrel... If non-OPEC [producers]also cooperate, I don't think $55 per barrel would be out of reach."

Benchmark Brent crude rose by 37 cents to $46.86 per barrel on Friday.

Asked about an OPEC proposal for an output cap of 3.92 million barrels per day for Iran, Zanganeh said: "We have not reached any agreement. We have expressed our views and we look forward to explaining them."

OPEC is moving closer towards finalising its first deal since 2008 to limit oil output, with most members prepared to offer Iran significant flexibility on production volumes, ministers and sources said on Friday.

Iran has been the main stumbling block for such a deal because Tehran wants exemptions as it tries to regain oil market share after the easing of Western sanctions in January.

On Friday, Russia's energy minister said he was "quite optimistic" the OPEC oil cartel will reach an agreement later this month on a planned output cut to shore up prices.

Alexander Novak was speaking after informal talks in Doha with some but not all of his OPEC counterparts ahead of the cartel's meeting in Vienna on November 30.

The cartel's 14 members have been at odds over the details of the production cut agreed in Algiers in September, which is supposed to lead to a wider agreement with non-OPEC producers including Russia.

Iran has refused to join in until it has restored its market share following the lifting of the sanctions in January.

Also, Iraq has asked for an exemption, saying it needs the income to fund its war against the terror group Daesh. 

Asked whether he thought Iraq would agree to a freeze or cut at the Vienna meeting, Novak said: "I would say that I am quite optimistic at this point.

"Today's discussions... do instil optimism in me.

"And I believe that the consultations of technical experts, which are going to be held soon, and other consultations ahead of the 30th November meeting... would result in an agreement."

He also told reporters that Russia was willing to limit production to "certain levels".

"We believe that demand will continue to grow. 

"Even today we have discussed numbers that demand will grow by 1.1, 1.2 million bpd [barrels per day] next year.

"If we jointly with OPEC can stabilise production and not add to supply then, yes, we believe this will be a very significant step of rebalancing the market."

Saudi Oil Minister Khalid Al Falih also attended Friday's meeting but made no comment as he left and instead gave a thumbs-up sign to reporters.

OPEC ministers agreed in Algiers to reduce production to 32.5-33 million bpd from the 33.47 million pumped in August, the first cut in eight years.

SAN FRANCISCO — Facebook on Wednesday said that it has bought facial recognition start-up FacioMetrics, potentially using the technology for photo or video effects to better challenge rival Snapchat.

"How people share and communicate is changing and things like masks and other effects allow people to express themselves in fun and creative ways," a Facebook spokesperson said in an e-mail reply to an AFP inquiry.

"We're excited to welcome the FacioMetrics team who will help bring more fun effects to photos and videos and build even more engaging sharing experiences on Facebook."

Silicon Valley-based Facebook did not disclose financial terms of the deal to buy FacioMetrics, which was spun out of Carnegie Mellon University in Pennsylvania.

FacioMetrics was founded in 2015, and specialises in using artificial intelligence to give facial image analysis capabilities to applications that run on smartphones.

The technology has potential in a host of applications, including those focused on animation, measuring audience reactions, and virtual or augmented realities, FacioMetrics founder and Chief Executive Fernando De la Torre said in a release.

"We're taking a big step forward by joining the team at Facebook, where we'll be able to advance our work at an incredible scale, reaching people from across the globe," De la Torre said.

Using FacioMetrics to let users of Facebook, or subsidiaries such as Instagram, have fun with photos or video could be a countermove to those kinds of features offered in "filters" at vanishing message service Snapchat.

Parent company Snap estimates it has more than 100 million users globally of the service for sending videos, images and text messages which vanish after being viewed. Some reports say it generates 10 billion video views per day.

Since trying unsuccessfully to buy Southern California-based Snapchat several years ago, Facebook has turned to cloning popular features.

DOHA — Demand for natural gas will grow in 2017 but at a slower rate than in recent years, Qatar's energy minister said on Thursday ahead of a meeting of exporting countries.

Mohammed Saleh Al Sada said ministers of the Gas Exporting Countries Forum (GECF) would discuss "long-term strategy" at Thursday's meeting in Doha.

"The big news, of course, is that the demand for natural gas grew in 2015 by 1.9 per cent, more than double of that in 2014," he said.

"And it is expected to continue growing in the next year albeit at a lower pace." 

The Doha-headquartered GECF is made up of 12 countries, including Russia, Algeria, Libya and Venezuela who between them account for more than 40 per cent of global gas output.

Officials would not confirm if all 12 countries are represented at Thursday's meeting but ministers from Russia and Algeria were taking part.

Iranian Oil Minister Bijan Zenghanah had announced he would not attend.

The GECF is meeting at a time when Liquefied Natural Gas (LNG) production is growing because of output from non-members Australia and the United States.

Qatar is currently the world's biggest LNG exporter but could soon be overtaken by Australia.

Sada said there would be a "new environment and competitiveness" on the supply side.

AMMAN — Deputy Prime Minister for Economic Affairs and Minister of State for Investment Affairs Jawad Anani stressed on Wednesday the importance of strengthening the Jordanian-Romanian ties, especially in economic and commercial fields.

Anani made the remarks at a ceremony, marking the signing of a joint cooperation agreement between the Jordan Chamber of Commerce and the Chamber of Commerce and Industry of Romania.

Romanian Minister of Foreign Affairs Lazar Comanescu, who is currently visiting the Kingdom, attended the signing of the agreement, which is intended to boost joint activities in economic, commercial, scientific and technological areas.

Anani indicated that the joint Jordanian-Romanian commercial exchange volume was still below the desired level and he urged the Romanian side to take the steps needed to deal with this issue. 

In 2015, the deficit in the trade balance, very much tilted in Romania’s favour, exceeded $295 million, he noted.

The Jordanian official explained that the Kingdom hopes to increase its exports, including phosphate and fertilisers, among other products, to the Romanian and European Union markets. 

Under the agreement, the two sides will hold joint business conferences, and establish a joint business council that contributes to boosting business relations and encouraging investments, the Jordan News Agency, Petra, reported.

Anani also referred to the possibility of benefiting from the Romanian expertise in vocational training through setting up a Romanian vocational centre in Jordan, in addition to increasing Romanian investment projects in the Kingdom.

On the sidelines of the ceremony, Anani and Comanescu held talks on fostering economic and commercial cooperation.

Jordan's exports to Romania include vegetables, medicines, and skin-care products while its imports from Romania include wood, paper, textiles, and livestock.

KUWAIT CITY — Kuwait must enact further subsidy reforms to trim its budget deficit resulting from low oil prices despite political sensitivity, the International Monetary Fund has said.

Posting its first budget shortfall of $15 billion last fiscal year following 16 years of surpluses, OPEC member Kuwait has adopted a series of austerity measures raising the prices of fuel, power and water.

The emirate liberalised diesel and kerosene prices last year and recently hiked the cost of petrol, causing a political crisis that led to parliament being dissolved and calls for a snap election.

But even with these measures, Kuwait will need a massive 35 billion dinars ($116 billion) to finance its deficit over the next six years, the IMF said in a report released late on Tuesday.

In spite of the government reform measures, Kuwait's "fiscal and external accounts have deteriorated markedly", it said.

"Further subsidy reform is critical."

The report encouraged "the authorities to move ahead with their plans to further rationalise energy subsidies", estimated at $7 billion in last year's budget.

It also called for controls on the wage bill and for raising non-oil revenues.

Earlier this year, the Cabinet approved a comprehensive plan aimed at subsidy reforms, economic diversification and controlling the wage bill, which accounts for almost half of public spending.

But the plan was fiercely opposed by the previous parliament and also by a majority of candidates running in polls slated for November 26.

According to local media, the government plans to end subsidies by 2020.

To meet budget financing needs, Kuwait has drawn down billions of dollars from its $600-billion sovereign fund.

It has also resorted to borrowing and plans to issue domestic and foreign bonds worth $16.6 billion.

Kuwait is projecting a deficit of $29 billion this fiscal year.