SATURDAY, FEBRUARY 15, 2014 BUSINESS World’s top financial regulator joins global FX probe LONDON: Foreign exchange benchmarks will be ing in the $5.3 trillion-a-day market. The US Federal allegations were “every bit as bad” as Libor. cooperating with regulators, handing over emails reviewed by the world’s top financial regulator, the Reserve is also involved in the probe, several sources Traders’ manipulation of London Interbank and electronic chat room communications between latest front to be opened in a global probe into alle- with knowledge of the investigation have told Offered Rates (Libor), benchmark global interest traders. An FSB spokeswoman told Reuters the FSB gations of price manipulation in the world’s largest Reuters, although the extent of that involvement is rates, has resulted in banks shelling out $6 billion in would inform G20 central bankers and finance min- financial market. The Financial Stability Board (FSB), unclear. “Recently, a number of concerns have been fines and settlements. The unfolding foreign isters meeting in Sydney next week that the FX which coordinates regulation for the Group of 20 raised about the integrity of foreign exchange rate exchange scandal has already seen more than 20 review was being undertaken. The board has already (G20) leading economies and is chaired by Bank of benchmarks,” the regulatory task force for the G20 traders put on leave, suspended or fired. No charges set up a group to study how best to move from a England governor Mark Carney, said yesterday it said in a statement yesterday. of any kind have been brought yet. quote to a market transaction-based system for would open its own investigation. It is the latest step “The FSB has consequently decided to incorpo- Groups of senior traders are alleged to have compiling interest rate benchmarks like Libor. The in an investigation into allegations that a handful of rate an assessment of FX benchmarks into its ongo- shared market-sensitive information relevant for the FSB’s foreign exchange group will be chaired by senior traders exchanged market-sensitive informa- ing program of financial benchmark analysis,” it popular WM/Reuters “fix,” or London fix, which is set Guy Debelle, assistant governor at the Reserve Bank tion and colluded to manipulate benchmark curren- added, confirming a Reuters exclusive last month. at 4 p.m. London time, using actual trades. London is of Australia, and Paul Fisher, executive director for cy rates. The scale of the probe and severity of the allega- the hub of the global market, accounting for some markets at the Bank of England. The FSB said con- The US Department of Justice and Britain’s tions were outlined last week by FCA chief executive 40 percent of the $5.3 trillion traded on an average clusions and recommendations would be transmit- Financial Conduct Authority (FCA) are among those Martin Wheatley, who told British lawmakers that day. Most of the major banks in the industry, such as ted to the G20 leaders summit in Brisbane in leading the investigations into potential wrongdo- the investigation would last into next year and the Citigroup , JP Morgan Chase and Deutsche Bank are November. — Reuters Slow Asia’s economy weighs on Starwood Hotels forecast Shares fall as much as 5%

BEIJING: Starwood Hotels & Resorts Worldwide Centara and Marriott International Inc - with just million of that was repurchased between Oct. 24 Inc forecast first-quarter revenue below analysts’ over 2 percent market share in 2012, according and end-December. “The real disappointment is estimates, mainly due to a slow Asian economy to Euromonitor. in the lack of buybacks in the (fourth quarter),” he and a strong US dollar. Starwood’s shares fell as The Thai Hotel Association said earlier this said. Starwood returned more than $500 million much as 5 percent after the owner of the month that occupancy rates in the capital were to shareholders in 2013 through stock buybacks Sheraton and Westin hotel chains also reported a hovering at around 50 percent, well below the and dividends, roughly similar to 2012. In con- drop in fourth-quarter revenue and did not say if usual 80 percent at this time of year - particularly trast, Marriott returned over $1.3 billion to share- it had bought back shares in January. An austeri- as 2013 was a record year for tourists with more holders in 2012. ty drive by China’s government and slow eco- than 26 million visitors. Tourist arrivals last month Starwood forecast first-quarter profit of 53-56 nomic activity in the rest of Asia are weighing on were about 1 million, half the number in cents per share, well below the average analyst U.S. hoteliers’ results. Chief Financial Officer December. Growth in tourism, which accounts estimate of 63 cents per share, according to HYDERABAD: An Indian vendor sells job application forms at his stand yesterday. Vasant Prabhu said on a conference call That anti- for about a tenth of Thailand’s GDP, more than Thomson Reuters I/B/E/S. “There’s limited visibili- More than 850,000 new employment opportunities are expected to open across the government protests in Thailand “significantly” halved to 10.7 percent in the fourth quarter year- ty across the lodging business and as such, we country this year, according to a survey by an Indian recruitment agency. — AFP hurt Starwood’s business in January, while the on-year from a 26.1 percent jump in July- believe conservative guidance at this point is company’s performance in India was weak and September. Online travel agency Orbitz prudent,” MLV & Co analyst Ryan Meliker wrote in will likely stay that way until after the general Worldwide Inc forecast current-quarter revenue a note. Starwood’s RevPAR from hotels open at India inflation falls elections later this year. A severe winter in the below analysts’ estimates yesterday. Starwood least one year in Asia, excluding China, dipped 3 United States that delayed travel and a slight dip said its revenue per available room (RevPAR) - a percent in the fourth quarter. Excluding currency in consumer sentiment in January are also metric of hotel health, calculated by multiplying changes, RevPAR rose 8 percent in Asia, exclud- to 8-month low expected to hit hotel operators in the current a hotel’s average daily room rate by its occupan- ing China, CEO Frits van Paasschen said. Total rev- quarter. cy rate - rose almost 8 percent at company-oper- enue fell 1.8 percent to $1.51 billion in the quar- NEW DELHI: India’s inflation fell to an eight- cut in lending rates to help boost slumping ated hotels in North America in January. ter, just shy of the average analyst estimate of month low in December due to easing food growth. But the Reserve Bank of India (RBI) Thai impact Hyatt Hotels Corp is scheduled to report $1.53 billion. Net income fell to $128 million, or prices, data showed yesterday, providing some raised its benchmark policy rate to 8.0 percent Hotel occupancy rates have dropped sharply results on Friday, while Marriott and Hilton 67 cents per share, from $142 million, or 72 cents good news for the government ahead of last month in a bid to wrestle down inflation, in central Bangkok, where street protests began Worldwide Holdings Inc are expected to report per share, a year earlier. elections. The scandal-hit Congress-led which it has signaled is its top priority. in November aimed at removing the government over the next few weeks. Excluding items, Starwood earned 73 cents government of Prime Minister Manmohan In its mid-year review on the economy pre- led by Prime Minister Yingluck Shinawatra. per share, above the 70 cents per share analysts Singh is desperate to tame inflation and revive sented to parliament this week, the govern- Starwood runs a Westin hotel and a Sheraton Slower buybacks had expected. Starwood shares last traded down the economy as it seeks a third term in office at ment also said prices need to be curbed. “The hotel close to one of the main protest sites at JP Morgan analyst Joseph Greff said Starwood 2.24 percent at $75.36 yesterday on the New York national elections due by May. outlook on growth is also threatened by certain Asoke, making access for cars and tourist buses was slowing the pace of its share buybacks. The Stock Exchange. The stock has gained more than The Wholesale Price Index — the most downside risks, the biggest being the high rate difficult. Starwood ranks fourth among leading company bought back $78.6 million in shares in a fifth in the past 12 months, in line with the Dow widely watched price barometer-eased to 5.05 of inflation, which further dents the ability of hotel brands in Thailand behind Accor SA, the fourth quarter, and Greff estimated that $2.7 Jones U.S. Hotels index. — Reuters percent in January from a year earlier, down the RBI to extend monetary policy support to sharply from 6.16 percent the previous month. growth revival,” it said. Ministry of Commerce The decline was on par with analysts’ forecasts and Industry figures showed yesterday food of just under six percent. The latest figures prices, a main driver of inflation, rose 8.80 per- Japan Display set for Tokyo come after the government announced this cent year-on-year, but were down from a rise of week that retail inflation-compiled using a nar- 13.68 percent in the previous month. The cost rower basket of goods-plunged to a two-year of all vegetables rose 16.60 percent year-on- listing worth around $3.8bn low of 8.79 percent in January. year, down from 57.33 percent last month, With industrial output shrinking by 0.6 per- while onions, regarded as a cooking essential in cent in December in the third straight monthly India, rose 6.59 percent, down from a 40 per- TOKYO: Japan Display, the world’s biggest maker of to 409 billion yen. The company was formed from will reduce their individual stakes from 4.3 contraction, business has been clamoring for a cent rise in December. — AFP screens for tablets and smartphones, gained the ailing display units of Ltd, Corp percent to 1.7 percent. approval from the Tokyo stock exchange for a listing and Toshiba Corp in 2012. Its majority shareholder, Japan Display will issue 140 million new shares of around $3.8 billion as the company taps one of the government-backed Innovation Network to raise a further 154 billion yen as it expands Japan airlines locked in Asia’s best performing equity markets in the past Corporation of Japan, has since engineered a turn- capacity, with 63 million of those offered to over- year. The sale next month will allow a government- around. The company has managed to stage a seas investors. Of that, 17 billion yen will go towards backed fund, which spent 200 billion yen ($1.96 bil- sharp earnings recovery on booming worldwide increasing production of modules for mid-tier fresh landing slot battle lion) on a controlling stake in Japan Display, to consumer demand for mobile devices, claiming the smartphones for the Chinese market while 2.5 bil- TOKYO: Japan’s two biggest airlines were Ito said JAL’s request was giving the airline recoup its investment. Japan Display will also issue top share of the small and midsize panel market in lion yen will be invested in a factory in central Japan locked in a fresh battle yesterday over land- a “great sense of crisis”, and warned it was new shares to help fund investment in equipment 2013. Japan Display said yesterday that it expects that makes LCD panels used in cars. ing slots at a Tokyo airport, with the civil falling behind its bailed-out rival. as it builds capacity to meet rising orders from mar- operating profit to grow more than 17 times to 36.4 aviation regulator playing referee between “We are concerned that the business kets including China. billion yen in the year ending March against sales of Japan IPOS the warring carriers. The spat erupted again environment would get further distorted,” The offering by the supplier to Apple Inc and 623.4 billion yen. Net profit will expand more than Companies raised $10.4 billion from IPOs in as All Nippon Airways (ANA) lodged a com- he told reporters in Tokyo yesterday, Samsung Electronics Co Ltd is part of an expanding nine times to 36.6 billion yen, while EBITDA, or earn- Japan in 2013, with deal volumes down 19 percent plaint over rival Japan Airlines’ (JAL) appli- adding that “we hope the Civil Aviation pipeline of Japanese listings. Companies are ings before interest, tax, depreciation and amortisa- from the previous year, Thomson Reuters data cation to launch a new route to Ho Chi Bureau will make an appropriate decision”. increasingly venturing into equity markets after the tion, will reach 370.17 yen per share, it said. showed. Consulting firm EY forecasts the number of Minh City from downtown Haneda airport, ANA has tried to cut costs and boost pro- reflationary policies of Prime Minister Shinzo Abe deals in 2014 to rise to about 80 from 60 last year, the world’s fourth-busiest hub. ductivity to keep up with its rival, Ito said. boosted Tokyo stock prices by more than 60 per- Expanding capacity buoyed by Prime Minister Abe’s economic policies. The request came several months after “But there is no way we can catch up if this cent since November 2012. At 389.3 billion yen, the Japan Display set a tentative IPO price of 1,100 Hitachi said yesterday that it would relist its battery Japan’s transport ministry awarded twice as distorted business environment continues,” Japan Display listing is on par with Suntory yen and plans to list on March 19. That price would and recording media subsidiary Hitachi , sell- many Haneda landing slots to ANA, he added. A bureau official told AFP that a Beverage and Food Ltd’s 388 billion yen initial pub- give it a market capitalization of 681.3 billion yen. ing shares in an offering worth up to $750 million. prompting threats of legal action from its decision on JAL’s bid would made be after lic offering last July. At a touch more at the current Existing shareholders are selling 213.9 million Railroad operator Seibu Holdings and Line Corp, key domestic rival which had earlier considering “all aspects of ensuring that price, it would be the biggest since Japan Airlines shares. The Innovation Network Corporation of operator of the free messaging app Line, currently received a massive bankruptcy rescue from there is an environment of fair competi- Co Ltd’s $8.5 billion in September 2012. Japan will reduce its stake from 86.7 percent to 34.5 owned by South Korea’s Naver Corp are other major Tokyo. Yesterday, ANA president Shinichiro tion”. —AFP Japan Display said it may issue an additional 18 percent, enough to give it a veto right at board listings that are considered possible in Tokyo this million shares as over-allotment, bringing the total meetings. Other shareholders Sony, Hitachi and year. —Reuters

EXCHANGE RATES

Malaysian Ringgit 85.910 Singapore Dollar 0.220585 0.226585 Al-Muzaini Exchange Co. UAE Exchange Centre WLL Chinese Yuan Renminbi 47.100 Thai Bhat 9.630 South African Rand 0.019906 0.028406 Turkish Lira 129.370 Sri Lankan Rupee 0.001894 0.002474 ASIAN COUNTRIES COUNTRY SELL DRAFT SELL CASH Taiwan 0.009220 0.009400 Japanese Yen 2.761 Australian Dollar 259.84 256.84 Thai Baht 0.008329 0.008879 Indian Rupees 4.557 Canadian Dollar 259.85 260.85 Bahrain Exchange Company Pakistani Rupees 2.687 Swiss Franc 320.83 318.83 Arab Srilankan Rupees 2.161 Euro 390.36 391.36 Bahraini Dinar 0.744738 0.752738 Nepali Rupees 2.855 US Dollar 282.45 285.45 COUNTRY SELL CASH SELLDRAFT Egyptian Pound 0.037059 0.040159 Singapore Dollar 224.320 Sterling Pound 468.11 471.11 Europe Iranian Riyal 0.000078 0.000080 Hongkong Dollar 36.514 Japanese Yen 2.82 2.84 Belgian Franc 0.007361 0.008361 Iraqi Dinar 0.000184 0.000244 Bangladesh Taka 3.637 Bangladesh Taka 3.636 3.906 British Pound 0.458741 0.467741 Philippine Peso 6.299 Jordanian Dinar 0.395218 0.402718 Indian Rupee 4.544 4.844 Czech Korune 0.006067 0.018067 Thai Baht 8.680 Kuwaiti Dinar 1.0000000 1.0000000 Sri Lankan Rupee 2.160 2.595 Danish Krone 0.047665 0.052665 Irani Riyal transfer 0.271 Nepali Rupee 2.842 3.377 Lebanese Pound 0.000138 0.000238 Euro 0.380048 0.387548 Irani Riyal cash 0.273 Pakistani Rupee 2.684 2.790 Moroccan Dirhams 0.024452 0.048452 UAE Dirhams 76.97 77.43 Norwegian Krone 0.042159 0.047359 Nigerian Naira 0.001198 0.001834 GCC COUNTRIES Bahraini Dinar 751.77 753.84 Romanian Leu 0.081716 0.81716 Omani Riyal 0.729552 0.735232 Saudi Riyal 75.550 Egyptian Pound 40.57 41.17 Slovakia 0.008115 0.018115 Qatar Riyal 0.077078 0.078291 Qatari Riyal 77.845 Jordanian Dinar 401.99 407.64 Swedish Krona 0.039903 0.044903 Saudi Riyal 0.074883 0.075583 Omani Riyal 735.970 Omani Riyal 734.55 741.85 Swiss Franc 0.308378 0.318578 Syrian Pound 0.002170 0.002390 Bahraini Dinar 752.490 Qatari Riyal 78.00 78.55 Turkish Lira 0.126495 0.133495 Tunisian Dinar 0.173797 0.181795 UAE Dirham 77.156 Saudi Riyal 75.45 75.85 Turkish Lira 0.126495 0.133492 Australasia ARAB COUNTRIES UAE Dirhams 0.076123 0.077272 Australian Dollar 0.247719 0.259219 Yemeni Riyal 0.001286 0.001366 Egyptian Pound - Cash 39.850 Dollarco Exchange Co. Ltd New Zealand Dollar 0.229690 0.239190 Egyptian Pound - Transfer 40.252 Yemen Riyal/for 1000 1.322 Rate for Transfer Selling Rate America Tunisian Dinar 178.790 Al Mulla Exchange US Dollar 282.950 Jordanian Dinar 400.080 Canadian Dollar 0.252075 0.260575 Canadian Dollar 260.370 Lebanese Lira/for 1000 1.901 US Dollars 0.279100 0.283450 Sterling Pound 465.915 CurrencyTransfer Rate (Per 1000) Syrian Lira 2.019 US Dollars Mint 0.279600 0.283450 Euro 387.045 Morocco Dirham 35.400 Swiss Frank 315.395 Asia US Dollar 282.500 Bahrain Dinar 747.125 Euro 389.150 EUROPEAN & AMERICAN COUNTRIES Bangladesh Taka 0.003342 0.003942 UAE Dirhams 77.015 Pound Sterling 473.500 US Dollar Transfer 283.200 Chinese Yuan 0.045310 0.048810 Qatari Riyals 78.565 Canadian Dollar 259.750 Euro 387.420 Saudi Riyals 76.320 Hong Kong Dollar 0.034392 0.037142 Indian Rupee 4.555 Sterling Pound 467.280 Jordanian Dinar 398.760 Indian Rupee 0.004164 0.004565 Egyptian Pound 40.230 Canadian dollar 258.750 Egyptian Pound 40.589 Indonesian Rupiah 0.000018 0.000024 Sri Lankan Rupee 2.158 Turkish lira 128.120 Sri Lankan Rupees 2.161 Japanese Yen 0.002679 0.002859 Bangladesh Taka 3.635 Swiss Franc 316.780 Indian Rupees 4.554 Kenyan Shilling 0.003364 0.003364 Philippines Peso 6.305 Australian Dollar 257.430 Pakistani Rupees 2.685 Korean Won 0.000256 0.000271 Pakistan Rupee 2.698 US Dollar Buying 282.000 Bangladesh Taka 3.635 Malaysian Ringgit 0.082128 0.088128 Bahraini Dinar 752.300 Philippines Pesso 6.287 UAE Dirham 77.000 GOLD Nepalese Rupee 0.003076 0.003246 Cyprus pound 694.980 Saudi Riyal 75.500 20 Gram 240.000 Pakistan Rupee 0.002397 0.002677 Japanese Yen 3.755 10 Gram 121.000 Philippine Peso 0.006467 0.006747 Syrian Pound 2.970 5 Gram 62.500 Sierra Leone 0.000069 0.000075 *Rates are subject to change Nepalese Rupees 3.820