Business

AMMAN — Jordan Investor Confidence Index dipped slightly in March, reaching 93.97 points from 94.4 points in February, according to a statement of the Jordan Strategy Forum. 

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

The confidence in the monetary system decreased in March to 83.01 points compared to 84.47 points although the Central Bank of Jordan foreign reserves went up by JD55.4 million to JD11.307 billion.

Confidence in the real economy continued to increase as it reached 116.75 points. The capital of registered companies increased and reached JD29.6 million in comparison to JD15.9 million and the number of these companies went up from 654 to 705 companies.

Tax on the monthly real estate volume increased by JD0.1 million to reach JD8.6 million and the number of construction permits has also increased to 3,017 permits in comparison to 2,919 permits. The manufacturing quantity production index increased as well from 91.3 points to 95.13 points. As for the confidence in the ASE, it went down by 0.92 points to 94.2 points in March, according to the forum’s statement. 

The ASE index witnessed a decrease by 27.5 points and reached 2,185.26 points. On the other hand, the ratio of inflow to outflow of foreign investment in the ASE increased from 58 per cent to 76 per cent this month.

New York, May 25, 2017 — Online retail giant Amazon on Thursday opened its first brick and mortar bookstore in New York, selling a limited range of its highest-rated books and letting customers browse products as in times gone by.

Amazon, which launched as an online bookseller in 1995 but which now sells everything from designer clothes to groceries, bided its time before venturing into the US cultural capital. It launched brick and mortar bookstores in six other cities first, starting in its hometown Seattle in 2015.

“You don’t run a marathon before you run a 5K,” said Jennifer Cast, vice president of Amazon Books. “We wanted some time to learn and we also really wanted the right spot.”

The New York store — a modest 370 square metres compared to the multi-storey premises of rival Barnes and Noble — occupies a prime spot at Columbus Circle opposite Central Park.

The offerings are limited to just 3,000 titles, none of which have received fewer than four out of five stars by Amazon’s online customers, who are invited to post their own reviews on the website.

There is also a “Page Turners” section dedicated to books that — according to Amazon data — customers have devoured in three days or less, and another to preferences of customers in the New York area.

Some of the store’s first customers welcomed the arrival of a new book store in a city where many book vendors have been forced to shutter in recent years.

“It’s just really exciting... that’s so unusual,” says freelance writer and mom of two Jennifer Rok.

“I always buy books online, so I don’t know how frequently I will buy here as opposed to on the internet, but I missed just browsing,” she said.

For Jannicke Remme, a researcher and tourist from Norway, it was a chance to browse a brick and mortar Amazon store not, yet, available in Europe. But she was less enthusiastic about the selection.

“You only see the bestsellers here, which means everybody is reading the same. That is not always nice,” she said.

Amazon plans to open 13 more brick and mortar bookstores in the United States before the end of the year, including a second one in New York, due to open this summer.

VIENNA — The Organisation of the Petroleum Exporting Countries (OPEC) decided on Thursday to extend cuts in oil output by nine months to March 2018, OPEC delegates said, as the producer group battles a global glut of crude after seeing prices halve and revenues drop sharply in the past three years.

The cuts were also shared by a dozen non-members led by top oil producer Russia, which reduced output in tandem with OPEC from January. 

OPEC’s cuts have helped to push oil back above $50 a barrel this year, giving a fiscal boost to producers, many of which rely heavily on energy revenues and have had to burn through foreign-currency reserves to plug holes in their budgets.

Oil’s earlier price decline, which started in 2014, forced Russia and Saudi Arabia to tighten their belts and led to unrest in some producing countries, including Venezuela and Nigeria.

The price rise this year has spurred growth in the shale industry of the US , which is not participating in the output deal, thus slowing the market’s rebalancing with global crude stocks still near record highs.

By 11:50 GMT, Brent crude had fallen 1.3 per cent to around $53 per barrel as market bulls were disappointed OPEC would not deepen the cuts or extend them by as long as 12 months.

In December, OPEC agreed its first production cuts in a decade and the first joint cuts with non-OPEC, led by Russia, in 15 years. The two sides decided to remove about 1.8 million barrels per day from the market in the first half of 2017, equal to 2 per cent of global production.

Despite the output cut, OPEC kept exports fairly stable in the first half of 2017 as its members sold oil from stocks.

The move kept global oil stockpiles near record highs, forcing OPEC first to suggest extending cuts by six months, but later proposing to prolong them by nine months and Russia offering an unusually long duration of 12 months.

“There have been suggestions [of deeper cuts], many member countries have indicated flexibility but ... that won’t be necessary,” Saudi Energy Minister Khalid Al Falih said before the meeting.

Cuts exclude Nigeria and Libya 

He added that OPEC members Nigeria and Libya would still be excluded from cuts as their output remained curbed by unrest.

Falih also said Saudi oil exports were set to decline steeply from June, thus helping to speed up market rebalancing.

OPEC sources have said the Thursday meeting will highlight a need for long-term cooperation with non-OPEC producers. 

“Russia has an upcoming election and Saudis have the Aramco share listing next year so they will indeed do whatever it takes to support oil prices,” said Gary Ross, head of global oil at PIRA Energy, a unit of S&P Global Platts.

OPEC has a self-imposed goal of bringing stocks down from a record high of 3 billion barrels to their five-year average of 2.7 billion. 

“We have seen a substantial drawdown in inventories that will be accelerated,” Falih said. “Then, the fourth quarter will get us to where we want.”

OPEC also faces the dilemma of not pushing oil prices too high, because doing so would further spur shale production in the United States, the world’s top oil consumer, which now rivals Saudi Arabia and Russia as the world’s biggest producer.

“A nine-month extension is insufficient at shale’s current trajectory. The strategic challenge of shale is still to be addressed,” said Jamie Webster, director for oil at Boston Consulting Group.

AMMAN — Planning and International Cooperation Minister Imad Fakhoury said several US companies want to tap investment opportunities available in the country and expand their investments, according to a ministry statement released on Tuesday.

The minister gave the remark in his address at the inauguration ceremony of the Jordanian-US Business Forum on Monday as he deputised for Prime Minister Hani Mulki.

US companies want to learn about new opportunities in the Kingdom and they also want to participate in reconstruction projects in the countries of the region, while being based in the Kingdom, the minister told the attendees, stressing the importance of the Jordan-US partnership. 

Asserting the country’s openness to global investments, Fakhoury briefed visiting representatives of US companies on investment projects that the government seeks to execute, in the context of the Jordan Vision 2025 and the Economic Stimulation Plan of 2018-2022, according to the ministry’s statement. 

Several Jordanian officials participated in the forum, including Industry and Trade Minister Yarub Qudah, Aqaba Special Economic Zone Authority Chief Commissioner Nasser Shraideh and Jordan Investment Commission (JIC) President Thabet Al Wir, in the presence of US Chargé d’affaires Henry Wooster, according to the Jordan News Agency, Petra.

Wir asserted the importance of the US market for the Jordanian economy, noting that the country’s annual exports to the US total around $1.7 billion, reported Petra. 

According to Wooster, the forum, organised in cooperation with JIC and the American Chamber of Commerce in Amman (AmCham), is important as its sheds light on new business opportunities that US and Jordanian companies as well as consumers can benefit from. 

AmCham CEO Rose Alissi said the chamber has been working in cooperation with the private sector, the US embassy in Amman and the Government of Jordan to foster bilateral ties through promoting exports and boosting investments, according to Petra. 

AMMAN — Dell EMC on Sunday hosted a conference, titled, “Let the Transformation Begin”, showcasing how they can help organisations in Jordan to stay ahead in today’s competitive digital economy, according to a company’s statement. 

At the event, attended by Minister of ICT and Minister of Public Sector Development Majd Shweikeh, Dell EMC highlighted its technologies that can be used to develop and drive an innovation-based economy characterised by economic diversification and entrepreneurship to help fulfil Jordan’s aspirations, the statement said.

“The holding of this important conference in Jordan reflects the Kingdom’s success in the global digital arena and its ever-increasing attraction as a regional hub for digital innovation,” Shweikeh said, addressing the attendees.

“Jordan recognises the importance of the ICT sector as a key driver of economic activity, and this conference’s ability to showcase the latest digital innovations will support our strategy and transition to become a knowledge-based, digital economy,” she added.

With business sustainability in the next industrial revolution depending on a solid digital strategy, a new study commissioned by Dell EMC, titled ESG 2017 IT Transformation Maturity Curve, highlighted the critical role that IT transformation plays in the journey to remain competitive and become a successful digital business.

Kamal Othman, general manager, Levant, Dell EMC told participants that Jordan is already witnessing a shift across industries, pointing out that “the Vision 2025 sweeps the business landscape with new opportunities”.

At present, “it is essential for organisations, both large and small, to transform their approach towards IT and adopt new technologies to meet their performance demands and achieve a larger objective of sustainable economic growth”, he noted, highlighting the company’s digital solutions. 

RIYADH — Saudi Arabia’s energy minister expressed confidence on Sunday of extending a global cut in oil production designed to boost prices.

Khalid Al Falih spoke ahead of a meeting on Thursday between the Organisation of the Petroleum Exporting Countries (OPEC) and Russia, where they are expected to extend the production cut pact.

“We have full commitment from the Russian side, including President [Vladimir] Putin himself,” Falih told reporters on the sidelines of summits between US President Donald Trump and Muslim leaders from around the world.

Saudi Arabia, the world’s biggest oil exporter, and Gulf members of OPEC are also fully behind an extension, while there is “strong” commitment from Iraq and others, Falih said.

With potential for “two or three more producers” to join, Falih was optimistic global supply and demand would balance by the first quarter of next year.

“We will do whatever is necessary,” he said, expressing an openness to “creative” solutions.

At the end of November, OPEC’s 13 members agreed to cut output by 1.2 million barrels per day (bdp) from January 1, initially for a period of six months to reduce a supply glut.

Then in December, non-OPEC producers led by Russia agreed to reduce their own output by 558,000bpd.

Falih said Russia “ultimately delivered” its 300,000bpd cut, though it took longer than hoped for.

“We have patiently worked together, but I think there is good faith, there is good cooperation, and going forward we intend to build on this relationship.”

Last week Russia and Saudi Arabia, the world’s two biggest oil producers, jointly called for oil producers to extend their production cuts to March 31, 2018.

Saudi Arabia currently produces close to 10 million bpd, Falih said.

Oil prices are near $50 per barrel after shedding around half of their value since mid-2014.

BERLIN — A rare working Apple-1, the first computer produced by Steve Jobs' world-beater-to-be company four decades ago, sold for less than expected at auction in Germany on Saturday.

One of only eight working models in the world, the machine fetched 110,000 euros ($125,000), well below the expected 180,000-300,000 euros — suggesting that a spike in prices after Jobs' 2011 death is definitely over.

"From our point of view we are back at normal levels. Five years after the death of (Apple co-founder) Steve Jobs the 'hype' has settled back," Uwe Breker, who oversaw the auction in Cologne, told AFP.

Breker's auction house, which specialises in the sale of technical antiques, had also been involved in a 2013 sale of another Apple-1 — which fetched 516,000 euros.

The model auctioned off Saturday and whose original owner was a Californian engineer, still had its receipt, its operating manual and other documents.

"[The Apple-1] was one of the first opportunities for someone to possess a real computer. I'd been working with computers for a while but they were huge," original owner John J. Dryden, who bought the Apple in 1976, said Friday.

He admitted that parting with the machine was a wrench but said the time had come as he had not used it in a long time.

The computer was one of around 200 Apple-1 units marketed by Steve Jobs and Steve Wozniak, who developed and built it.

Saturday's buyer was a German engineer who collects old computers.

AMMAN — Jordan Investment Commission President Thabet Al Wir on Saturday urged South Korean businessmen to increase their investments in Jordan, to further participate in developing the country’s industrial, technical and tourist sectors, according to the Jordan News Agency, Petra.

During a meeting that was organised by the Jordanian-Korean Business Council, marking the 55th anniversary of establishing relations between the two countries, Wir said that despite challenges, the country’s economy has continued to grow, noting that the Republic of Korea is a strategic partner for Jordan.

In the past 15 years, the joint commercial exchange volume grew more than five folds, Wir said during the meeting, which was attended by South Korea’s ambassador to Jordan, Lee Bom-yon. 

BRUSSELS — The European Commission on Thursday fined US social media giant Facebook 110 million euros ($120 million) for providing incorrect and misleading information on its takeover of WhatsApp, imposing its biggest penalty linked to a merger.

"Today's decision sends a clear signal to companies that they must comply with all aspects of EU merger rules, including the obligation to provide correct information," EU Competition Commissioner Margrethe Vestager said in a statement.

"The Commission must be able to take decisions about mergers' effects on competition in full knowledge of accurate facts," Vestager said.

Facebook said in response that it cooperated with the Commission.

"We've acted in good faith since our very first interactions with the Commission and we've sought to provide accurate information at every turn," a Facebook spokesperson said.

"The errors we made in our 2014 filings were not intentional and the Commission has confirmed that they did not impact the outcome of the merger review. Today's announcement brings this matter to a close."

EU regulators cleared the then $19 billion Facebook acquisition of WhatsApp in late 2014, finding no reason to believe it would dampen competition in the burgeoning social media sector.

In its statement on Thursday, the Commission recalled that the merger rules require companies to provide regulators with the accurate information essential to any review.

It noted that when Facebook notified the Commission of the acquisition in 2014, the company had said it would "be unable to establish reliable automated matching between Facebook users' accounts and WhatsApp users' accounts".

"However, in August 2016, WhatsApp announced updates to its terms of service and privacy policy, including the possibility of linking WhatsApp users' phone numbers with Facebook users' identities," it said. 

After launching a probe last year, the Commission "found that, contrary to Facebook's statements in the 2014 merger review process, the technical possibility of automatically matching Facebook and WhatsApp users' identities already existed in 2014, and that Facebook staff were aware of such a possibility”.

The Commission said Thursday's decision and the fine would have no impact on its October 2014 clearance of the deal.

Commission spokesman Ricardo Cardoso said the fine was less than it would have been because Facebook cooperated.

Cardoso added it was nonetheless the "highest fine ever" imposed by the commission for breaches linked to a merger and would serve as a deterrent to others.