Redundancy threat real even for top earners - survey

It doesn't matter how much you earn or how senior your role is, the threat of redundancy amid the global economic slowdown can affect anyone, the results of the Arabian Business Salary Survey suggests.

Four out of the top 10 earners who completed the poll during January told us they were anxious about keeping their job during 2009 including one aviation company director who had been in his role for more than five years.

All those top earners who were worried about job security worked in the UAE although the industries in which they specialised varied from healthcare to banking.

Etisalat to unveil prepaid plans for iPhone - UAE

Etisalat is to unveil prepaid plans for iPhone users in the UAE in the near future, the company revealed on Sunday.

“Etisalat will announce prepaid plans for the customers in the near future. However, as of now prepaid customers can also benefit from the free postpaid SIM card on purchase of every package and activate their iPhone,” a spokesperson said.

The country’s largest telecom operator also responded to criticism from Arabian Business readers over the difference in pricing of iPhone packages in the UAE and Saudi Arabia, where Etisalat last month launched the Apple handset through its subsidiary, Mobily.

Retail survey exposes customer service flaws

The level of customer service in Dubai's retail market is deteriorating, a UK-based company has found in its annual survey.

Based on interviews with 583 Dubai residents, business consultancy Joshua found that customer service satisfaction remains low in the emirate, with the retail sector coming out as the worst offender.

The category that saw the biggest drop in standards was staff behaviour, which only managed to score 2.1 on a scale of 1 to 5, compared with 2.8 last year.

UAE business sentiment 'on the rise' - Standard Chartered

Business sentiment in the UAE is on the rise, heightening the importance of the government addressing the liquidity crunch, Standard Chartered said on Thursday.
Markets have reacted positively to the news that Dubai will be able to meet its financial obligations this year, with the Dubai Financial Market posting its biggest daily increase on Monday since November 17, racking up a 7.91 percent increase as it closed at 1,652 points.

“Sentiment is improving and with momentum now turning positive there is an opportunity for policymakers to step up their efforts to improve liquidity in the UAE economy,” a team of Standard Chartered economists wrote in a note to investors.

Dollar Falls in Asia on US Bank Fears

TOKYO: The dollar fell against the yen in Asia Monday as reports that Washington may have to nationalise some ailing banks stoked fears over the depth of the global financial crisis.

The dollar slipped to 93.05 yen in Tokyo morning trade from
93.29 in New York late Friday.

The euro dropped to 1.2787 dollars from 1.2824 and to 119.09 yen from 119.63, hit by concerns over the health of the Eastern European economies.

“Markets are unsettled by two fears right now: the nationalisation of US banks and the financial crisis hitting Eastern Europe,” said Ryohei Muramatsu, manager of Commerzbank’s Group Treasury Asia in Tokyo.

The US government is in talks that could lead to it taking a 25-40 percent stake in Citigroup, The Wall Street Journal reported.

Senator Christopher Dodd, who heads the Senate banking committee, said that President Barack Obama’s administration was seeking to avoid nationalising banks but did not rule out a short-term state takeover. Fears about US banks pushed stocks down to six-year lows on Wall Street on Friday.

US Treasury Secretary Timothy Geithner was reportedly due to unveil more details of a banking rescue plan this week. Markets were disappointed by a lack of detail when Geithner first outlined the scheme earlier this month. “The reaction of stocks will be an important driver of currencies this week,” NAB Capital strategist John Kyriakopoulos wrote in a note to clients.

Some market watchers warned against excessive optimism over the Wall Street bailout. “I think it is better for markets not to expect any concrete details on a swift plan from Geithner,” said Muramatsu. “If the speech disappoints investors again, it could put markets back into dangerous territory,” he added.

US turns to China to resolve econ crisis

Secretary of State Hilary Clinton says China's continued investment in US Treasury bonds is essential to finance the $787b stimulus plan. "Because our economies are so intertwined the Chinese know that in order to start exporting again to its biggest market, the United States had to take some very drastic measures with this stimulus package," Clinton said at the US embassy shortly before leaving Beijing. US President Barack Obama signed a record $787 billion bill on Tuesday with the aim of reviving the world's largest economy. Clinton said China was making 'a very smart decision' by continuing to invest in US Treasuries, saying it would help the US economy moving again. "By continuing to support American Treasury instruments the Chinese are recognizing our interconnection. We are truly going to rise or fall together," said Clinton, wrapping up her first overseas visit as secretary of state which also took her to Japan, Indonesia and South Korea. China is the top holder of US Treasury bills, with $696.2 billion of such securities in December followed by Japan with $578.3 billion, according to the latest official data from Washington.

GM stock hits 74-year low

General Motors Corp. shares have dived to their lowest level in more than 70 years, pulled down by a drop in the broader markets.

GM shares hit a low of $1.52 in early afternoon trading, before rebounding somewhat to close down 23 cents, or 11.5 percent, at $1.77. The low matched a record set on July 26, 1934, according to the Center for Research in Security Prices at the University of Chicago.

The price is adjusted for splits and other changes.

The Detroit-based automaker's shares have been battered over the past year by worries about the viability of the US auto industry and plunging sales stemming from the industry wide drop in demand for new vehicles.

GM shares were worth $3.50 just a month ago and $25.54 a year ago.

On Tuesday, GM said it would need a total of USD 30b in federal aid in order to avoid filing for bankruptcy protection, up from a previous estimate of USD 18b and including USD 13.4b it has already received. It also said it would need to cut 47,000 jobs worldwide.

Dubai shares rally as investors eye Borse news

Shares of Dubai Financial Market Co (DFM) surged 11.29 percent as the stock exchange's mother company, Borse Dubai, proved it would not default on a loan due for refinancing this month. 

Investors often trade DFM based on news related to Borse Dubai although the stock exchange's profits are not linked to the parent, derived rather from revenues from trading volumes the index DFMGI.

The Borse refinancing "will give confidence to investors that Dubai will be able to weather the storm, but it does not have any direct affect on DFM," said Amr Diab, head of sales at EFG-Hermes.

UK inflation rate falls to 3%

UK inflation rate has fallen in January to nine-month low as the country's stocks have plunged and global economic recession has widened. 

Consumer Prices Index (CPI) inflation descended slightly in January to 3%, from 3.1% in December as cheaper food, fuel, transport and housing reduce pressure on prices, the Office for National Statistics said Tuesday in London. 

CPI inflation in the UK has dropped for four months consecutively. An inflation of 5.2% was recorded in September. 

The headline Retail Prices Index (RPI) rate, which includes mortgage costs and is often used in pay negotiations, reduced to 0.1% from 0.9% in December. This is the lowest rate registered since 1960. The decrease in RPI may lead to pressure on employers to limit salary rises. 

Transport costs have had the biggest downward contribution, as the price of petrol fell by 2.9 pence per liter to 86.3 pence between December and January. Diesel prices in the same period decreased 4 pence per liter to 98.4 pence.

Jobs threat to dictate house price fall - top agent

Job cuts will dictate how much house prices will fall over the next few months, a top Dubai real estate agent has said. 

Speaking on the sidelines of the Dubai International Property Show, Vince Easton, sales director at property consultant Sherwoods said the city’s uncertain job market would have a "big impact" on prices in the next three months, predicting a new wave of layoffs in March.

Japanese minister denies being drunk at G7

Japanese Finance Minister Shoichi Nakagawa has strongly denied that he was drunk at a Group of Seven news conference in Italy. 

Nakagawa told reporters on Monday that he had taken medicine on his flight to Rome for a meeting of the finance leaders. 

"I did not drink a glassful," he said, adding that "I had a cold. Honestly, the cold medicine kicked in too much". 

He hinted that the medication might have affected him badly. 

Nakagaw, a close ally of Japan's premier Taro Aso, also apologized for his poor performance at the news conference late Saturday in Rome. 

"It is true that I didn't conduct myself properly, and I feel I must set the record straight," the 55-year-old Nakagawa told reporters in Tokyo. 

Videos of the conference showed that Nakagawa at one point mistakenly answered a reporter's question about interest rates meant for Bank of Japan Gov. Masaaki Shirakawa, who was also present at the news conference. 

"Hmm? What? Can you say that again?" Nakagawa asked a reporter. 

He also tried to grab a glass placed in front of Shirakawa instead of the one right before him. 

Despite his denials, several Japanese media reports agreed he had the glassy eyes and sweaty complexion of a man who had enjoyed a few glasses of Chianti, courtesy of his Italian hosts. 

Premier Aso has also come under pressure to sack Nakagawa after the incident.

Australia's MPs approve stimulus package

Australia's upper house passes the Labor government's A$42billion ($27bn) stimulus package after the bill was blocked during an earlier vote. 

The bill was backed in the Australian Senate on Friday by 30 votes to 28. 

The approval came after the government reached a deal with an independent lawmaker who had earlier joined the Liberal Party-led opposition. 

Labor does not have a majority in the Senate, and some compromise had been expected. 

Earlier on Thursday, Senator Nick Xenophon "no" vote saw the package defeated in a tied vote in its first attempt to clear the Senate. 

The approval of the package clears the way for the government to roll out planned initiatives designed to boost the economy and avert a recession. 

"Australia cannot resist the international economic forces and we cannot defy the effects of the downturn in our own region. But through decisive government action we can reduce the effects of the global recession on Australian families, jobs and small businesses," Premier Kevin Rudd told lawmakers. 

Financial experts say the ultimate approval of the stimulus package is a positive for the economy.