Business

By Abid Ali in Business on November 1st, 2011
European stocks open sharply down as proposed referendum on Greek bailout casts doubt on eurozone recovery prospects. [Reuters]

We had a deal of sorts from the eurozone leaders - but it was a terrible deal for Greece. Now it seems the Greek Prime Minister George Papandreou has flown back to Athens, and in the cold light of the day, realised he and his people had been sold down the river. Hence a referendum. 

You see German Chancellor Angela Merkel wants to keep kicking the can down the road. There is no legal framework to stop eurozone nations spending beyond their means. And the German nation doesn’t want to bailout anyone - by coming forward with an incomplete deal the pressure is on Italy, Spain and France to find more austerity measures. It’s the German way of keeping the house it built in check, let the markets (bond investors) demand more interest of new bonds sold.  

Merkel and French President Nicholas Sarkozy may not want to read this: but can you believe the world’s biggest and richest trading block is begging China for money?

By Abid Ali in Business on June 23rd, 2011

The "West" is quick to point the finger at OPEC whenever oil prices are on the rise. All manner of statistics are produced to blame OPEC nations for their economic troubles.

Take for example that the cartel's members would earn $1 trillion dollars this year as crude trades above $100 a barrel. It may be so.

But let’s not forget that almost $600bn leaves these oil producing nations in remittances (western immigrants benefit as well), company profits (Western oil companies, included) and through the import of consumer goods. In effect, these nations are keeping the global economy ticking.

Let’s be clear, OPEC nations produce 40 per cent of the world’s oil. That means there are nations that produce the other 60 per cent.

By Kamahl Santamaria in Business on April 7th, 2011
Photo by EPA

I feel cheated. Big time. And by the leader of a Western European nation no less!

A few months ago, Jose Socrates, the prime minister of Portugal, was in Doha and made an appearance on Al Jazeera's business programme Counting the Cost, which is fronted by yours truly.

Obviously I wanted to talk about Portugal's precarious debt situation, and all the talk from markets and analysts that the country's visit to the EU and IMF for a financial bailout was a foregone conclusion.

There's a link to that specific programme and interview here.

Watch it, if you've got 10-15 minutes spare, and tell me if you think Mr Socrates was being genuine when he told me "we don't need any kind of help but confidence". And when he assured me that a financial bailout wouldn't be necessary.

Because two weeks ago he was forced out as prime minister.

By Abid Ali in Business on January 7th, 2011

Is this YouTube video proof that China has developed a stealth fighter jet? The origin of the video is unclear but the fact that Chinese censors allowed it to be posted on domestic websites indicates that it may have been leaked with the approval of the authorities.

The J-20 stealth bomber could challenge the US air force's F-22 Raptor. India and Russia recently signed an agreement to develop their own stealth fighter.

By Abid Ali in Business on November 25th, 2010
Photo by EPA

Would you give money to someone in debt?

Tough question I guess. You would ask yourself what is the possibility of them paying you back.

How would you feel if the money you give was guaranteed?

I think you would step up.

Now here’s the problem. Bond holders to the troubled economies of Greece, Ireland, Portugal and Spain have been offered unwritten guarantees. They have been banking on Germany stepping in to help bailout Europe’s laggards.

The lady who triggered the latest crisis that has Ireland taking its begging bowl to the European Union and International Monetary Fund is at it again. And she’s right.

German Chancellor Angela Merkel said:

Have politicians got the courage to make those who earn money share in the risk as well? Or is dealing in government debt the only business in the world economy that involves no risk?

By Laurence Lee in Europe, Business on November 16th, 2010
Photo: GALLO/GETTY

Middlesbrough, a large town in the northeast of England, has some of the nicest people you'll find anywhere, and that's particularly surprising given what they've been through over the last few decades.

Other than the container port, the two main drivers of employment here were steel (first British Steel, then Corus, then Tata, now nothing), and Imperial Chemical Industries (ICI), which also got sold off in packets to conglomerates from the Middle East, Indonesia and elsewhere. Those people who say globalisation works should take a look here - it's failed people utterly.

People say that every one of the 50,000 or so who worked in steel or petrochemicals kept another seven people in work in feeder industries - suppliers and the like - so the fact that steel's now gone and petrochemicals employs just 3,000 means ... well, you work it out.

So Middlesbrough is on its knees.
By Dan Nolan in Business on October 19th, 2010
Photo by Reuters

The United Arab Emirates' new crackdown on business with Iran will no doubt draw applause in Washington but alarm in Dubai.

New regulations preventing transactions with Iranian banks means trade between the two nations has all but come to a standstill in recent weeks, according to those affected.

In 2009 total trade was worth an estimated $12bn, making the oil-rich Arab nation Iran's top trading partner.

But the reality is that only one of the seven emirates that make up the UAE federation has been responsible for the bulk of Iranian trade and is thus regarded as Tehran's backdoor to the West – Dubai.

For years, Dubai has been seen by the West as dragging its feet on rigorous enforcement of UN sanctions - an accusation it always denies.

By Abid Ali in Business on October 19th, 2010
Photo from AFP

There’s a race going on right now. A "war" if you take the words of Brazil’s finance minister, Guido Mantega, to devalue currency. The reason is simple: by keeping your currency low against your competitor you will export more.

Timothy Geithner, the US treasury secretary, says his country  is not involved in currency manipulation. On the other hand, the US accuses China of being a currency manipulator and has delayed publishing a report to this effect.

"It is not going to happen in this country." Geithner said.

It is very important for people to understand that the United States of America and no country around the world can devalue its way to prosperity, to (be) competitive.

By Abid Ali in Business on September 13th, 2010
Photo by AP

Kabul Bank is a private bank. A monopoly, if you like: the only avenue for government employees to receive their salaries.

A great money making machine. A bank that likes to say its "Touching Hearts, Changing Lives" - it certainly has for its shareholders.

In America’s attempt to break the stranglehold of the informal cash economy, mostly the hawalas - used to transfer vast amounts of money that they fear is driving the insurgency and drugs trade - they've inadvertently created a behemoth on an Afghan scale.

In fact, Western Union is the preferred partner for remittances.

I want to share some numbers with you.

By Abid Ali in Business on September 8th, 2010
Photo by Getty Images

It sounds like the start of a joke. But these are the thoughts of Michael O’Leary, the chief executive of low-cost airline Ryanair.

O’Leary would like to fly short hop routes with only one pilot.

Let the bloody computer fly it,

he tells Bloomberg Businessweek. If the pilot was to have a heart attack then the flight attendant should land the plane, he says.

O’Leary tells the Financial Times that trains only have one driver.

In 25 years with over about 10 million flights, we’ve had one pilot who suffered a heart attack in flight and he landed the plane.  

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