> Finance & Stock Exchange > Markets > Financial & Business News
UPDATE 2-Kuwaitis go to the polls, economy tops agenda
Reuters: [2008-05-17 16:36:00]
(Adds turnout, fresh quotes)
By Ulf Laessing and Rania El Gamal
KUWAIT, May 17 (Reuters) - Kuwaitis voted in a parliamentary election on Saturday that they hoped would bring in fresh faces able to bury political feuds and push through economic reforms.
Some 275 candidates are running for the 50-seat National Assembly, among them 27 women hoping for their first success after failing to win a single seat in 2006.
Women won the right to vote and stand for office in 2005 but face an uphill struggle attracting voters in a Gulf Arab country where many still believe a woman's place is in the home.
"I'm against women in parliament. I think everybody should stay in his place," said Samira al-Azm, a voter in her fifties.
Nearly 362,000 Kuwaitis, over half of them women, are eligible to vote, but polling got off to a slow start on a hot, dusty weekend. By noon an average 25.6 percent of voters had cast their ballots, state new agency KUNA said.
Kuwait's ruler, Sheikh Sabah al-Ahmad al-Sabah, dissolved parliament in March to end a standoff with the cabinet that had delayed economic reforms aimed at preparing Kuwait for the era when its vast oil reserves run out.
The last assembly focused on questioning ministers over their conduct, forcing several to resign. The OPEC producer has yet to appoint an oil minister since the last quit in November.
Amid the political squabbles, reforms such as a bill to attract foreign investment were left on the back burner.
"I expect many of the old assembly not to make it. Their performance was not good enough. They were pursuing their own interests, not solving Kuwait's problems," said Hanaa, 33.
REFORM HOPES
Kuwait's bourse, the second-largest in the Arab world, rose after parliament was dissolved on hopes the new chamber would be more business-friendly but has since shed some of its gains.
"Investors now want to see some action," said Mustafa Behbehani, a director at Gulf Consulting Co in Kuwait.
The two-month campaign has been marred by protests, arrests and confusion after a new law redrew electoral districts to ensure a more balanced representation in a parliament that has tended to be dominated by Islamist blocs and tribal alliances.
Candidates have also been detained on vote-buying allegations and, under the new rules that have cut the number of constituencies from 25 to five, no one can predict who will win.
Analysts said the main Islamist and tribal blocs would do well in the enlarged districts where independents may struggle.
"They will enter the parliament. They are a big part of the society," said Amani Bouresli, a finance professor at Kuwait University. "But we expect a big change, almost 40-50 percent change, because of the five constituencies. There will a change in the faces but not in the formation of the assembly."
Kuwait, which sits on 10 percent of the world's oil, wants to wean its economy off energy exports and emulate the success of neighbours like Dubai and Bahrain which have transformed themselves into financial centres and tourist destinations.
Oil makes up over 90 percent of Kuwaiti government revenues and 55 percent of the gross domestic product in 2006, according to official data. That compares to 3 percent of GDP in Dubai.
Part of the problem is that ordinary Kuwaitis oppose reforms that would cut their benefits. They pay no taxes and are content with state jobs and handouts and free health and schools.
Many Kuwaitis are also fed up with a state which, despite its oil wealth, allows roads, hospitals and schools to crumble.
Reforms will be even harder to push through with global food prices rising and inflation at a record 9.5 percent in January. (for more Kuwait elections see factbox on reform [L17396506], factbox on political system [nL17415668] and facts on Kuwait [nL13895566]) (Editing by Lin Noueihed and Philippa Fletcher) ((+965 246 03 50, ulf.laessing.reuters.com@reuters.net))
Keywords: KUWAIT ELECTIONS/
Bulgaria's top security agency to probe bank rumour
Reuters: [2008-05-17 14:59:00]
SOFIA, May 17 (Reuters) - Bulgaria's prime minister has asked the Balkan country's top security agency to investigate rumours that First Investment Bank (FIBank) <FIB.BB> was facing financial problems, the government said on Saturday.
Sergei Stanishev reiterated that all banks that operate in the European Union newcomer were financially stable and wanted the agency to check whether the spread of rumours was a "scenario" plotted by competitors or had a political aim.
"The state agency will investigate the case which has caused panic among the Bulgarian citizens in the past days," Stanishev said in a statement. "The government will never allow citizens saving to suffer," he said.
On Friday, the central bank said FIBank and other banks were in "excellent condition", dismissing the rumours as unfounded. The move had calmed the bank's clients and decreased deposit withdrawals from Bulgaria's sixth largest lender.
The rumours have spread via several Bulgarian internet blogs in the past two weeks. Central Bank Governor Ivan Iskrov said on Friday that the spread of the rumours was a scenario aiming at damaging FIbank's credibility.
Bulgarians still keep bitter memories of a 1996/97 financial crisis that wiped out a third of the Balkan country's banks. The European Union newcomer has since introduced a currency board regime that pegs the national currency to the euro.
FIBank had assets worth of 4.07 billion levs ($3.22 billion) at end-March, when it posted a net profit of 15.07 million levs up from 10.1 million profit a year ago.
Bulgaria's 29 banks are mainly owned by big European lenders, many from Italy, Austria, Germany and Greece.
(Reporting by Angel Krasimirov; Editing by Ron Askew)
((angel.krasimirov@reuters.com; +359 887 988 196))
Keywords: FIBANK BULGARIA/
UPDATE 1-Kuwaitis go to the polls, economy tops agenda
Reuters: [2008-05-17 12:33:00]
(Adds quote, details on political groups)
By Ulf Laessing and Rania El Gamal
KUWAIT, May 17 (Reuters) - Kuwaitis voted in a parliamentary election on Saturday that they hoped would bring in fresh faces able to bury political feuds and push through economic reforms.
Some 275 candidates are running for the 50-seat National Assembly, among them 27 women hoping for their first success after failing to win a single seat in 2006.
Women won the right to vote and stand for office in 2005 but face an uphill struggle attracting voters in a Gulf Arab country where many still believe a woman's place is in the home.
"I'm against women in parliament. I think everybody should stay in his place," said Samira al-Azm, a voter in her fifties.
Nearly 362,000 Kuwaitis, over half of them women, are eligible to vote, but voting began slowly on a hot, dusty weekend morning.
Kuwait's ruler, Sheikh Sabah al-Ahmad al-Sabah, dissolved parliament in March to end a standoff with the cabinet that had delayed economic reforms aimed at preparing Kuwait for the era when its vast oil reserves run out.
"Oh voter - which Kuwait do you want?" said the daily al-Rai in an editorial, urging voters to back candidates who put national interest first.
The last assembly focused on questioning ministers over their conduct, forcing several to resign. The major OPEC producer has yet to appoint an oil minister since Badr al-Humaidhi resigned in November.
Amid the political squabbles, reforms such as a bill to attract foreign investment were left on the back burner.
REFORM HOPES
Kuwait's stock market, the second-largest Arab market, initially rose after parliament was dissolved on hopes the new chamber would be more business-friendly, but has since shed gains.
"Investors now want to see some action," said Mustafa Behbehani, a director at Gulf Consulting Co in Kuwait.
The two-month campaign has been marred by protests, arrests and confusion after a new law redrew electoral districts to ensure a more balanced representation in a parliament that has tended to be dominated by Islamist blocs and tribal alliances.
Candidates have also been detained on vote-buying allegations and, under the new rules that have cut the number of constituencies from 25 to five, no one can predict who will win.
But analysts said the main Islamist and tribal blocs, already influential and established, were likely to perform well in the large constituencies where independents may struggle.
Kuwait, which sits on 10 percent of the world's oil, wants to wean its economy off energy exports and emulate the success of neighbours like Dubai and Bahrain which have transformed themselves into financial centres and tourist destinations.
Oil makes up over 90 percent of Kuwaiti government revenues and 55 percent of the gross domestic product in 2006, according to official data. That compares to 3 percent of GDP in Dubai.
Part of the problem is that ordinary Kuwaitis oppose reforms that would cut their benefits. They pay no taxes and are content with state jobs and handouts and free health and schools.
Many Kuwaitis are also fed up with a state which, despite its oil wealth, allows roads, hospitals and schools to crumble.
Reforms will be even harder to push through with global food prices rising and inflation at a record 9.5 percent in January. (Editing by Lin Noueihed and Myra MacDonald) ((+965 246 03 50, ulf.laessing.reuters.com@reuters.net))
Keywords: KUWAIT ELECTIONS
REFILE-Kuwaitis go to the polls, economy tops agenda
Reuters: [2008-05-17 09:21:00]
(Refiles to fix typo in headline)
By Ulf Laessing
KUWAIT, May 17 (Reuters) - Kuwaitis voted in a parliamentary election on Saturday that they hoped would bring in fresh faces able to revive economic reforms to wean the country off its dependence on oil.
Some 275 candidates are running for the 50-seat National Assembly, among them 27 women hoping for their first success after failing to win a single seat in 2006.
Women won the right to vote and stand for office in 2005.
Some 361,685 Kuwaitis, over half of them women, are eligible to vote. Members of the security forces are not allowed to vote.
The Gulf Arab state's ruler, Sheikh Sabah al-Ahmad al-Sabah, dissolved parliament in March to end a standoff with the cabinet that had delayed economic reforms aimed at preparing Kuwait for the era when its vast oil reserves run out.
"Oh voter - which Kuwait do you want?" said the daily al-Rai in an editorial, urging voters to support candidates putting national interest first and seeking to work with the government to approve reforms aimed at enlivening the country's economy.
Kuwait's stock market, the second-largest in the Arab world, initially rose on hopes the new chamber would be more business-friendly, but has shed some gains recently.
"Investors now want to see some action," said Mustafa Behbehani, a director at Gulf Consulting Co in Kuwait.
The two-month campaign has been marred by protests, arrests and confusion after a new law redrew electoral districts to ensure a more balanced representation in a parliament that has tended to be dominated by Islamist blocs and tribal alliances.
Candidates have also been detained on vote-buying allegations and, under the new rules that have cut the number of constituencies from 25 to five, no one can predict who will win.
The last assembly focused on questioning ministers over their conduct, forcing several to resign. The major OPEC producer has yet to appoint an oil minister since Badr al-Humaidhi resigned in November.
Kuwait, which sits on 10 percent of the world's oil, wants to wean its economy off energy exports and emulate the success of neighbours like Dubai and Bahrain which have transformed themselves into financial centres and tourist destinations.
But Kuwait's political standoff means even a long-awaited bill aimed at attracting foreign investment has yet to pass.
Oil makes up over 90 percent of Kuwaiti government revenues and 55 percent of the gross domestic product in 2006, according to official data. That compares to 3 percent of GDP in Dubai.
Part of the problem is that ordinary Kuwaitis oppose reforms that would cut their benefits. They pay no taxes and are content with state jobs and handouts and free health and schools.
Many Kuwaitis are also fed up with a state which, despite its oil wealth, allows roads, hospitals and schools to crumble.
Reforms will be even harder to push through with global food prices rising and inflation at a record 9.5 percent in January.
"They don't treat you, they torture you," said a woman, describing dental treatment at a flagship state hospital.
(Editing by Lin Noueihed and Myra MacDonald) ((+965 246 03 50, ulf.laessing.reuters.com@reuters.net))
Keywords: KUWAIT ELECTIONS
PRESS DIGEST - British Business Press - May 17
Reuters: [2008-05-17 05:06:00]
The Times
BA FORCED TO CONSIDER '900 MILLION POUND FALL' IN PROFIT
British Airways <BAY.L> has been forced to consider a possible 900 million pound fall in profit as a result of the rising price of oil. Martin Broughton, the chairman, admitted on Friday that the board had discussed what the plan of action would be if the airline was in a "break-even position" by the end of this financial year, saying "the crude objective is not to get into a break-even situation but to stay profitable." The pessimistic comments alarmed investors. Nick van den Brul, aviation analyst at Exane BNP Paribas, said: "There is clearly a lot of bad news to come."
TAKEOVER BATTLE AT BRITISH ENERGY HOTS UP, 2 MORE APPROACHES
British Energy <BGY.L> is at the centre of an increasingly heated takeover battle as it emerged on Friday that the power company had received two more preliminary offers, one valuing it at almost 11 billion pounds. The company has received takeover or other approaches from EDF Energy <EDF.PA>, RWE <RWEG.DE>, Iberdrola <IBE.MC> and Suez <LYOE.PA>, the French industrial group. The company said it had been approached by "several parties wanting to make a full offer". The shares jumped 5.2 percent on news of the additional approaches, closing up 35.5 pence at 715.5 pence.
COMPUTACENTER SCREENS A GLOOMY QUARTER
Computacenter said it expected lower profits in the first half of the year due to slower trading in the UK and France. The company, which provides IT services to large companies, governments and investment banks, said like-for-like sales were down 1.5 percent in the first three months of 2008, while they fell 7.1 percent outside the UK, mainly as a result of weak sales in France. Mike Norris, the chief executive, said: "There's no doubt that if you have an economic downturn, IT spend will be hit."
The Daily Telegraph
QATARIS TOLD 100 MILLION POUNDS NEEDED FOR CARE HOME GROUP
The Qatari government-owned Four Seasons, one of the UK's biggest nursing home chains, has been told by bankers that a cash injection of more than 100 million pounds is necessary to stabilise the business. Royal Bank of Scotland <RBS.L> and Credit Suisse <CSGN.VX> are in fraught discussions with Paul Taylor, who heads Three Delta, the UK investment fund of the Qatari Investment Authority. Taylor has been trying to negotiate refinancing of Four Seasons' 1.3 billion pound debt, which must be completed before June to avoid a massive one-off interest payment. The banks have made refinancing conditional on the Qataris and Taylor pumping a minimum of 100 million pounds of fresh equity into the business.
SCOTS TV CHANNEL WOULD SHOW CLASSICS
The broadcaster SMG, which operates the ITV <ITV.L> franchise in Scotland, has put forward a proposal to the Scottish authorities for a new Scottish digital TV channel that would show BBC programmes and popular shows from its own archives. The plan was unveiled at the company's annual general meeting on Friday. Rob Woodward, the chief executive, said the channel would need 15 million pounds of public money.
MCKENNA CALLS TIME ON NEW BROKING ARM
Ingenious Securities, the stockbroking business of banker-to-the-stars Patrick McKenna, is being shut down. It is thought that all staff have lost their jobs, with one employee saying: "We have not been given a chance to show what we can do." McKenna, who recently paid himself between 75 and 100 million pounds in profits from the business, said: "The decision to close our securities business has not been an easy one."
The Independent
CENKOS FRUSTRATED AGAIN AS TALKS WITH ARDEN BREAK DOWN
Cenkos Securities <CNKS.L>, the broking house, has stumbled in its second takeover approach for Arden Partners <ARDN.L> after negotiations broke down. Cenkos said on Friday that discussions with Arden "have now ceased", just three months after a 1.6 billion pound bid for Close Brothers collapsed at the discussion stage. A source close to Arden said: "Cenkos were really keen to get a deal done and they got pretty close. Rivals came in and it was Arden's duty to the shareholders to evaluate them. It slowed the whole process down and Cenkos didn't want to hang around."
REGENT INNS SALES SLIDE 11 PERCENT AS SMOKING BAN HITS HOME
The smoking ban and falling consumer confidence were blamed for a sharp fall in sales at Regent Inns <REGI.L>, which operates the Walkabout pubs and Jongleurs comedy clubs. Like-for-like sales fell 11 percent in the period from 30 December 2007 to 14 May 2008. "This downturn in sales has principally arisen in Walkabout, while Jongleurs has continued to trade robustly," Regent said. The shares closed up five percent at 16.5 pence.
BLOOMSBURY SHARES RISE ON UPBEAT REPORT
Bloomsbury Publishing <BLPU.L>, the group that published the Harry Potter books, reported "encouraging" operating performance since the start of the year following good sales of Khaled Hosseini's books A Thousand Splendid Suns and The Kite Runner. "The group continues to make progress in all areas," the group said in a statement. "The measures that we are taking to reduce costs are already delivering positive results." The shares rose five percent, closing up seven pence at 154 pence.
Next: Argentine stocks rise on oil prices; peso firms