Page 1 - Financial Tribune No 638

Asia Manufacturing
Growth Marred by
Rising Prices
After seeing only marginal growth in the third quarter,
business conditions at Asian manufacturers have
continued to improve at a modest pace in the fourth
quarter. However, there are significant variations in
performance across the continent as well as sharply
higher input prices.
MONDAY DECEMBER 5, 2016
AZAR 15, 1395
RABI AL AWWAL 5, 1438
PGPIC,
$341m
Japan’s Itochu Corporation signed a
deal on Saturday to lend €320 million
($341 million) to the Persian Gulf
Petrochemical Industry Company
The government has projected a stronger dollar and a higher price for crude oil in the March 2017-18 budget bill.
President Hassan Rouhani submitted the
budget bill for the 2017-18 fiscal year, which
begins in March, to parliament on Sunday.
The bill projects larger revenues from taxes
and oil exports, though the weaker exchange
rate for the rial against the dollar will put next
15
USD 39,100 Rial EUR 42,280 Rial AED 11,050 Rial TEDPIX 80,063.7 DFMGI 4,261.86 Gold $1,177.10 Coin 11,200,000 Rial Brent
Japan Co. Sign
Usance LC
(PGPIC) for infrastructure development.
The agreement was signed by PGPIC
executive director Adel Nejad-Salim and top
officials from Itochu Corp and the Japanese
year's budget firmly below this year in dollar
terms. The total amount of the budget is 3,711
trillion rials, which puts it 10.6% over the
3,354-trillion-rial budget passed into law for the
current year.
Also, government companies, banks and
Embassy in Tehran, state news agency IRNA happy that Itochu Corp has decided to expand
reported without naming the Japanese officials.
collaboration in Iran. We have a huge capacity
Nejad-Salim pointed to the presence of
Japanese companies in Iran and said, “We are for production of petrochemicals, polyethylene
in particular.”
Budget Bill
in Parliament
for profit organizations which had 6,828 trillion dollar and a higher price for crude oil in the
rials this year will get 7,565 trillion rials to
finance their operations. March 2017-18 budget bill.
Higher Crude, Weaker Rial It set the greenback's exchange rate at
The government has projected a stronger
33,000 rials, up from last year's 29,970 rials,
and still far lower than the 39,600 rial/dollar in
Tehran's markets on Sunday.
Putin Says Donald Trump
Will Act Responsibly
Russian President Vladimir Putin said US president-elect,
Donald Trump, is a clever man and will quickly understand
his new responsibilities.
Putin has spoken previously of his hope that Trump
will help restore US-Russia relations and analysts said
he was unlikely to ramp up anti-western rhetoric before
Trump's inauguration in January.
"Trump was an entrepreneur and a businessman. He
is already a statesman, he is the head of the United States
of America, one of the world's leading countries," NTV
quoted Putin as saying in the interview on www.ntv.ru on
Sunday.
"Because he achieved success in business, it
suggests that he is a clever man. And if (he is) a clever
man, then he will fully and quite quickly understand
another level of responsibility. We assume that he will be
acting from these positions," Putin said.
Putin's comments appeared to address criticism
Presidential Poll
Showdown in Austria
Austrians have returned to the polls to decide the
presidential race between a rightwing populist and his
left-leaning rival.
The vote is being watched, as a far-right win could
boost populist movements in Europe.
Voters in Austria headed to the polls on Sunday
morning at the end of a bitterly fought campaign between
Greens-backed Alexander Van der Bellen and the anti-
migrant Freedom Party candidate Norbert Hofer.
Most polling stations opened at 7 a.m. (0600 UTC)
and will close by 5 p.m. on Sunday. Results are expected
to arrive later in the evening, but the winner may not
be known until absentee ballots are tallied on Monday,
reported Deutsche Welle.
INTERNATIONAL
Referendum
in Italy
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ERGO Group
Seeking
Iran Access
ERGO Group, one of the largest
insurance groups in Europe,
is keen on entering Iran's
insurance market, Alexander
Ankel, chief operating officer
of ERGO International, told the
23rd International Conference on
Insurance and Development in
Tehran on Saturday. 6
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Majlis Calls for Gov’t
Action on ISA Renewal
Iran’s Parliament has urged the government to act on a 2015
Majlis bill in response to a US Congress measure that only
awaits an expected presidential approval to reauthorize the Iran
Sanctions Act for another decade.
The call came in a statement read out in the parliament’s
Sunday session, IRNA reported.
The US Congress has voted almost unanimously to pass the
ISA extension.
5 ISA has been in effect since 1996 and will expire on Dec. 31, if
not renewed. 2
Akhoundi Facing
Impeachment
A motion for the impeachment of roads minister was presented to
the Majlis Presiding Board on Sunday, in the second attempt by
lawmakers to sack Abbas Akhoundi.
The request was signed and forwarded by 84
parliamentarians who cited his weak performance that led to a
terrible train collision, one of the worst rail accidents in Iran in
recent memory, Fars News Agency reported.
Forty-nine died and 103 were injured in what has become a
national scandal and prompted the resignation of the head of Islamic
Republic of Iran Railways, Mohsen Pourseyyed-Aqaei. 2
Greenback at
Four-Year High
The US dollar was sold for 39,500 rials in Tehran market on
Sunday to mark a 2.4% growth compared with the previous day’s
close of 38,600 rials. Reports suggest some moneychangers
had sold the currency for as high as 39,800 rials. The currency,
however, lost some ground and closed at 39,100 in late trade.
The greenback had begun a surprise rally from 37,500
about 10 days ago, reaching its highest rate in at least four
years. However, it lost some ground on Saturday by reaching
38,600 rials, following the statement of the Central Bank of Iran’s
governor that the swings are short-lived.
Sunday's rate for the American currency was unprecedented
during the tenure of President Hassan Rouhani who took office in
mid-2013. The jump in rates initially was triggered after Donald
Trump’s unexpected victory in the US presidential election last
month. However, the US Senate’s vote for extending Iran Sanctions
Act on Friday is said to have impacted the market on Sunday. 6
India Crosses $300b
FDI Milestone
4 India crossed the $300 billion foreign direct investment milestone
between April 2000 and September 2016, firmly establishing its
credentials as a safe investment destination in the world.
The 33% of FDI came through the Mauritius route, apparently
because the investors wanted to take advantage of India's double
taxation avoidance treaty with the island nation, PTI reported.
India received $101.76 billion from Mauritius between April
2000 and September 2016. The cumulative FDI inflows during
the period amounted to $310.26 billion. 15
Chinese President Calls
for Downsizing Military
Chinese President Xi Jinping on Saturday called for further
downsizing the 2.3 million-strong Chinese military and improving
its combat capabilities, after his last year's move to cut 300,000
troops from the world's largest military.
Speaking at a two-day conference on military reform, Xi, also
chairman of the Central Military Commission which is the overall
high command of the People's Liberation Army, said China's
military needs to put more focus on technology rather than force
of numbers, The Times of India reported.
"This is a major, inevitable change. We must seize the
opportunity and make breakthrough," he was quoted as saying
by state-run Xinhua news agency.
The Chinese president stressed on further military reform by
downsizing the army while improving its combat capabilities and
optimizing the structure.
Last year in September, Xi had announced that Chinese
military will see a 300,000 troop reduction, which is expected to
take place from next year, the fourth military downsizing by the
Chinese state since 1980s.
The troop reduction is regarded as part of efforts by the PLA to
streamline its force, as it launched unprecedented modernization
with new weapons and technology.
Xi's comments were reported to have caused murmurs of
dissent over his military reforms. He has already reconstituted its
administrative and command structure after carrying out an anti-
corruption drive in which several retired and servicing top military
officials were indicted.
He has also been calling on armed forces to adhere to the
leadership of the ruling Communist Party of China's absolute
leadership.
3 WORLD ECONOMY 14
Recession Will EEDIRCNAAOIGNLNLY’OSISMHIC
Visit Saudi
Arabia in 2017
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