ICD Buys Atlantis Dubai State Fund Buys Hotel from Debt-Laden Peer
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Business21 FRIDAY, DECEMBER 6, 2013 China bars banks from bitcoin transactions SHANGHAI: China’s government banned predicting the price could halve in the central bank. The PBOC may have cause to telecommunications authorities, it said. financial institutions from trading in bit- short-term. Digital currencies are generally be concerned about bitcoins, which are The notice was issued jointly by the PBOC, coin yesterday, in what analysts said was a highly volatile. anonymous, untraceable, and can be car- the Ministry of Industry and Information restrained first step towards regulating the Bitcoins have seen their value relative ried on memory sticks or transmitted elec- Technology, the China Banking Regulatory digital currency that has exploded in pop- to the dollar skyrocket some 800 percent tronically, because they represent a poten- Commission and the China Securities ularity in China and soared in value in in the past two months as speculators tial hole in the country’s capital controls. Regulatory Commission and China recent months. A statement by the central have piled into the currency, according to However, analysts point out that, given the Insurance Regulatory Commission. bank and four other agencies said that, bitcoinity.org. While there is no official tiny value of the total bitcoins in circula- “This is an industry that will need to be while the computer-generated currency data available, bitcoin market operators tion relative to other currencies, it is governed or regulated. The safety and the does not yet pose a threat to China’s finan- say Chinese nationals are major partici- unlikely to have much impact on the wider well-being of the common user has to be cial system, it carries risks. It did not, how- pants in the market and hold an outsized economy. More cause for worry is the way taken into consideration. All this is expect- ever, curtail the use of bitcoin by individu- share of the total number of bitcoins in cir- these digital currencies have engendered a ed,” said Ron Cao, Managine Director at als. culation. Shanghai-based BTC China has new wave of creative criminality focused Lightspeet Venture Partners, which recent- “I think it’s measured and it’s positive,” recently become the world’s largest bit- on hacking online platforms and stealing ly invested $5 million in BTC China. “‘We’ve said Zennon Kapron, of the financial con- coin exchange by volume. bitcoins stored there, and their potential got a long way to go. This thing needs to sultancy Kapronasia. “It does add legitima- A statement on the website of the for use in money laundering, bribery and be regulated at some point. We’re study- cy to the idea that it could be a nationwide People’s Bank of China (PBOC) said that purchases of illicit products such as drugs ing it. Don’t jump into it.’ My read is that’s accepted currency.” The value of bitcoins the government would act to prevent and weapons. The government will require the tone of the message.” Bitcoin traders on Chinese exchanges fell after the money laundering risks from bitcoin, trading platforms that deal in virtual cur- sold on the Chinese government’s announcement, however, with one expert which is not backed by a government or rencies such as bitcoin to register with announcement.—Reuters ICD buys Atlantis Dubai state fund buys hotel from debt-laden peer DUBAI: A unit of Dubai World has sold its ny owned by Dubai World, according to local Atlantis resort, which sits at the head of a media reports. palm tree-shaped island in the emirate, as the Dubai World’s restructuring plan envis- state-owned group raises funds to meet huge aged that it would raise $1.3-$2.3 billion debt repayments after a $25 billion restruc- between 2010 and 2012, and a further $3.9- turing in 2011. Investment Corp of Dubai $5.3 billion in 2013-2015 through sales of (ICD), a holding company of some of the emi- holdings such as P&O Ferries and MGM rate’s top groups which is also state-owned, Resorts International. However, unfavourable has bought the resort from the unit, Istithmar conditions for selling assets and the fall in val- World, for an undisclosed sum, ICD said yes- uations since the global financial crisis meant terday. Dubai World had to sit on its hands and “Our acquisition of an asset that is a major began offloading bits of its portfolio only this contributor to the domestic tourist industry is year. Atlantis was set up in 2008 as a joint in line with our overall strategy to support venture between Istithmar World and Kerzner long-term sustainable growth for Dubai,” International. In April 2012, Istithmar acquired FRANKFURT: President of European Central Bank, ECB, Mario Draghi is on his way to a Khalifa Al Daboos, deputy chief executive offi- Kerzner’s 50 percent stake in the property for news conference in Frankfurt, Germany yesterday, following a meeting of the ECB gov- cer of ICD, said in the statement. A $250 million. The Atlantis sale is Dubai erning council. — AP spokesman for Istithmar in Dubai declined to World’s second disposal this year after selling comment. The sale adds to a series of dispos- British logistics warehouse developer Gazeley ECB holds rates, focus als by Dubai World, which had promised to in June. It is close to selling The sell non-core assets under the debt-restruc- Fontainebleau hotel in Miami Beach, Florida. turing plan drawn up when the group fell vic- State-owned ICD has holdings in some of the shifts to new forecasts tim to a property market crash in the emirate emirate’s most high-profile brands, including and the after-effects of the global financial Emirates airline, Emaar Properties and lender FRANKFURT: The European Central Bank in 2015. crisis. Emirates NBD. left interest rates unchanged yesterday, “That will raise questions next time The firm needs to repay $4.4 billion in May Istithmar World’s investment portfolio pausing to assess the health of the euro- Draghi goes to the European Parliament as 2015 under its restructuring terms. Dubai’s spans consumer, industrial and financial serv- zone recovery after taking action a month to why they are not doing more to achieve economy is recovering due to renewed ices, hotels and commercial property sectors. earlier in response to falling inflation, which their own target, and could raise the pres- investor optimism in its trade, tourism and Among its assets are entertainment group is now abating. The decision to hold the sure on the ECB to do more over the coming real estate sectors but the freewheeling emi- Cirque du Soleil and the Mandarin Oriental main refinancing rate at a record low of 0.25 months,” he said. However, the ECB’s hawks rate still faces debt repayments of about $50 hotel in New York. The investment arm, which percent was widely expected after the ECB’s would resist further easing. November’s cut billion over the next three years. Economic made a spate of overseas purchases during surprise decision to cut borrowing costs last followed a fall in euro-zone inflation to 0.7 recovery is bolstering finances of some state the early part of the decade, was hard hit by month. percent in October - far below the ECB’s tar- entities which are stepping in to reduce the global financial crisis as asset values dropped “This is in line with expectations as the get of just under 2 percent. It has since debt burden. Dubai Electricity & Water sharply and access to credit dried up. The firm ECB’s action last month was seen to have picked up to 0.9 percent and unemployment Authority (DEWA), a state-owned utility, plans named veteran banker Ziad Makkawi as its rebalanced risks to price stability and also fell in October, offering the ECB a reprieve. to buy Palm Utilities, a district cooling compa- new chief executive in September. — Reuters pre-empted the publication of what we In the run-up to yesterday’s meeting, sev- think will be weak inflation projections,” said eral senior policymakers have flagged the Nomura economist Nick Matthews. Markets’ ECB’s readiness to ease policy further if need- Britons to work longer attention now shifts to ECB President Mario ed, while at the same time playing down the Draghi’s 1330 GMT news conference, at prospect of immediate action. Peter Praet, which he will present updated projections the bank’s chief economist who begins the under austerity plans from the ECB’s staff, which will include their rate meetings with a policy recommendation, first forecasts for 2015. last month put the possibility of the ECB LONDON: Britons may have to work for longer Liberal Democrat coalition government will seek The new estimates will give markets embarking on asset buys - or quantitative before claiming a state pension, under further to bring forward plans to extend the retirement insight into the ECB’s view on inflation over easing (QE) - on the agenda. austerity plans to be presented by finance min- age to 68 before they are entitled to a state pen- the medium term, the horizon over which it However, another senior ECB policymak- ister George Osborne in a budget update yester- sion, according to a government source. The aims to deliver price stability in line with its er, Benoit Coeure, said last week the ECB day. Chancellor of the Exchequer Osborne will state pension age was due to rise to from 65 to target. Should the new projections point to does not need to make large-scale asset pur- deliver his so-called autumn statement in parlia- 68 by 2046.