Your Daily News 16 March 2015

0

International and European News

16 March 2015

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Your Daily News 16 March 2015

1

International News

Russia cuts interest rates as rouble crisis

eases

[16 March 2015, BBC News] Posted 13 March:

Russia's central bank has cut its key interest rate

by one percentage point to 14%, as concerns

over inflation recede as Russia's economy falters.

The move, which was widely expected, comes as

the rouble stabilises following its radical 46%

decline in 2014.

That drop prompted the bank to increase rates

up to 17% in an effort to halt the plunge.

The rate rise strengthened the rouble against the

dollar.

Read more:

http://www.bbc.co.uk/news/business-31871321

Gotham Air is Uber for helicopters

[16 March 2015, CITY A.M.] Posted 13 March. By

Emma Haslett: Pills, pets, hot stone massages -

there's an Uber for all of them. But now the "hail

something from your smartphone" model has

gone considerably more upmarket, after the

launch of Gotham Air - an Uber for helicopters.

Admittedly hailing a helicopter comes with more

conditions than hailing a cab. Firstly, at the

moment it's only in New York. Secondly, the

helicopter will only ferry passengers from

Manhattan's Downtown Heliport to either JFK or

Newark airports. Thirdly, it operates a flat fee of

$219 (£150) per journey. And fourthly, the

chopper will only take off once it has a minimum

of four passengers.

But the app, which launched on 12 March, cuts

passengers' journey to the airports down to a

time-efficient six minutes.

Read more:

http://www.cityam.com/211547/gotham-air-

uber-helicopters

US markets in a panic about prospect of Fed

rate hike

[16 March 2015, CITY A.M.] US stock markets

are in the midst of a ―patient panic‖ ahead of

Wednesday‘s Federal Reserve statement, when

many investors expect a change in the Fed‘s

language that would send the clearest signal yet

that a rate hike is coming soon.

The S&P 500 has fallen 2.6 per cent since

February‘s stronger-than-expected jobs report a

week ago boosted expectations for an interest

rate increase as soon as June.

Stocks may fall further if Fed chair Janet Yellen

drops a pledge to be ―patient‖ about rate hikes in

the Fed‘s statement after the upcoming policy

meeting. Most economists expect her to erase

that word as a precursor to starting rate hikes in

June, according to a Reuters Poll.

Read more:

http://www.cityam.com/211612/us-markets-

panic-about-fed-rate-hike-week-ahead-wall-st

INDIA: ITC to set up 20 factories for FMCG

business

[16 March 2015, Times of India] Posted 14

March: PTI. NEW DELHI: Diversified

conglomerate ITC Ltd on Saturday said it is in the

process of setting up 20 factories for its FMCG

products as it aims to garner Rs 1 lakh crore

revenue from that business alone by 2030.

"We are in the process of building 20 factories.

How much money we are going to spend ... We

are one company that is not looking for interest

rate to dip before we think of our investment. We

are not borrowing money, we want to invest. It‘s

for FMCG," ITC chairman Y C Deveshwar said at

India Today 2015 conclave.

He further said: "There are some roadblocks, we

are stuck on land ... but let us contribute to this

country in a significant way."

Your Daily News 16 March 2015

2

Deveshwar, however, did not elaborate on the

investment the company would make for setting

up these factories.

In the previous fiscal, ITC's revenue from FMCG

including cigarettes stood at Rs 23,555 crore.

The company's FMCG business includes

cigarettes, foods, lifestyle retailing, personal

care, education & stationery, safety matches and

agarbattis [incense sticks].

[NOTE: A crore (abbreviated cr) is a unit in the

Indian Numbering System equal to ten million

(10,000,000), which is written in these regions as

1,00,00,000, equal to a hundred lakh (a lakh is

equal to one hundred thousand and is written as

1,00,000).]

Read more:

http://timesofindia.indiatimes.com/business/india

-business/ITC-to-set-up-20-factories-for-FMCG-

business/articleshow/46566615.cms

IMF Supports GST In India

[16 March 2015, Tax-News.com] Posted on 13

March. By Mary Swire, Tax-News.com, Hong

Kong

The International Monetary Fund has urged India

to proceed with its planned goods and services

tax to raise revenue for growth-enhancing capital

spending and social programs.

A well-designed GST should be implemented with

minimal exemptions and a moderate single rate,

as it would create a single Indian market,

enhance the efficiency of goods and services

trade between states, and thereby boost gross

domestic product (GDP) growth, the IMF said in

its 2015 Article IV consultation report with India.

Further revenue gains can be achieved by

instituting tax administration reforms, including

by reorganizing tax administration along

functional lines and merging the indirect and

direct tax boards, the IMF said.

The Fund noted that India's ratio of revenue to

GDP is considerably below its peers.

See more at:

http://tax-

news.com/news/IMF_Supports_GST_In_India___

_67527.html

Egypt to build new administrative and

business capital

[16 March 2015, BBC News] Posted 13 March:

Egypt's new administrative and business city, on

the outskirts of Cairo, has been revealed on a

new website. It says the city will house up to five

million residents and be built in the corridor

between Cairo and the Red Sea.

There will be 1.1m housing units and 1.75m

permanent jobs.

The city is set to be officially unveiled at an

Egyptian government conference at the Red Sea

resort of Sharm El-Sheikh, to global investors

and politicians.

'Significant shipping routes'

The website - unveiled on Friday - says that "the

master plan is to create a global city with smart

infrastructure for Egypt's future, which will

provide a multitude of economic opportunities

and offer a distinct quality of life".

It will be built over 700 sq km (270 sq miles) -

about the size of Singapore.

Read more:

http://www.bbc.co.uk/news/business-31874886

Tax Study Explains US Corporate Exodus

[16 March 2015, Tax-News.com] Posted on 13

March. By Mike Godfrey, Tax-News.com,

Washington: A study has found that the

competitive disadvantage caused by the present

United States tax code led to a USD179bn net

loss of American companies and business assets

to foreign buyers between 2003 and 2013.

The study, prepared by accounting firm Ernst &

Young (EY) LLP and released by the Business

Roundtable (BRT), also suggested that a 25

percent US corporate tax rate (rather than the

Your Daily News 16 March 2015

3

present headline federal rate of 35 percent)

would have prevented foreign purchases of 1,300

companies during that same period.

Having looked at more than 25,000 cross-border

merger and acquisition (M&A) transactions

among the 34 OECD countries between 2004 and

2013, EY found that American companies had

been the target in 23 percent of transactions by

value and the acquirer in just 20 percent,

resulting in the USD179bn mergers and

acquisitions "deficit." In addition, technology-

intensive sectors accounted for a significant

portion of the transactions by value.

It was pointed out that, over those 10 years, the

US statutory corporate income tax rate remained

steady while rates in many other countries fell.

As a result, the gap between the US statutory

corporate income tax rate and the simple-

average OECD rate has increased from two

percent to 10 percent, heightening the

disadvantage in the M&A market for US

companies.

See more at:

http://tax-

news.com/news/Tax_Study_Explains_US_Corpor

ate_Exodus____67525.html

Seychelles Confirms Tax Amnesty

[16 March 2015, Tax-News.com] Posted on 13

March. By Lorys Charalambous, Tax-News.com,

Cyprus: The Seychelles Revenue Commission has

confirmed the availability of an amnesty on

penalties and interest for businesses that have

outstanding tax debts and returns.

Further to measures to boost tax compliance

announced in the 2015 Budget, the SRC has

implemented a debt recovery plan that will apply

to business tax arrears for tax years up to 2013

(for amounts payable in 2014), and for

withholding tax, duties, and all other taxes, for

payments due for tax years up to 2014.

Taxpayers have three options to settle their

outstanding tax as at December 31, 2014, or to

submit outstanding returns. The program offers a

100 percent waiver of penalties and interest on

arrears cleared by May 31, 2015; a 50 percent

waiver of penalties and interest on arrears

cleared by August 31, 2015; and a 25 percent

waiver of penalties and interest on arrears

cleared by October 31, 2015.

See more at:

http://tax-

news.com/news/Seychelles_Confirms_Tax_Amne

sty____67529.html

WTO Panel To Mediate In China-Canada

Dumping Dispute

[16 March 2015, Tax-News.com] Posted on 13

March. By Mike Godfrey, Tax-News.com,

Washington: The World Trade Organization on

March 10, 2015, established a panel to adjudicate

in a dispute between Canada and China over

anti-dumping duties imposed by China on imports

of Canadian cellulose pulp.

Canada complained to the WTO about the duties

in October last year, alleging that they put

Canadian exporters of cellulose pulp (also known

as dissolving pulp) at a disadvantage. Canada

said that the measures are inconsistent with

China's obligations under the Anti-Dumping

Agreement and the General Agreement on Tariffs

and Trade (GATT) 1994.

The anti-dumping duties were levied by China on

April 6, 2014, at rates of up to 23.7 percent. Last

year, Canadian companies exported CAD317m

(USD249m) of cellulose pulp to China. In 2013,

Canada produced approximately 750,000 tons of

cellulose pulp, of which 363,000 tons was

exported to China.

See more at:

http://tax-

news.com/news/WTO_Panel_To_Mediate_In_Chi

naCanada_Dumping_Dispute____67531.html

Costa Rica Consults Public On VAT Reform

[16 March 2015, Tax-News.com] Posted on 13

March. By Mike Godfrey, Tax-News.com,

Washington: The Costa Rican Government on

March 10, 2015, launched a public consultation

on its plan to implement a value-added tax in

place of the current general sales tax.

Under the proposal, the VAT would come into

force in 2016 at a rate of 13 percent (the same

rate currently applied to the general sales tax)

before rising to 15 percent in 2017. Exemptions

would be granted to the supplies of companies

operating in free trade zones and certain sectors,

Your Daily News 16 March 2015

4

such as the healthcare and public transport

sectors.

The Government also plans to make changes to

the income tax regime. Together, the proposed

reforms are expected to raise Government

revenue by about CRC600bn (USD1.12bn), or

two percent of gross domestic product (GDP).

The Government aims to submit the proposal to

the legislative assembly by April 13.

See more at:

http://tax-

news.com/news/Costa_Rica_Consults_Public_On

_VAT_Reform____67532.html

Egypt To Up Scrutiny Of Self-Employed

Persons

[16 March 2015, Tax-News.com] Posted on 13

March. By Fernand Gagnier, for

ExpatBriefing.com:

The Egyptian tax authorities wish to step up tax

compliance efforts to ensure the correct payment

of taxes among self-employed professionals.

The Minister of Finance, Hany Kadry Dimian, has

said that he is considering a proposal to open six

new tax offices dedicated to dealing with this

sector, referred to as the "non-commercial"

professional sector, which includes doctors,

architects, accountants, lawyers, and similar

professions. He noted that tax revenues from this

sector have not increased at the same rate as in

the commercial and industrial sectors.

Plans under consideration also include

establishing and encouraging information sharing

between different government departments and

between the tax authorities and the various

professional members' associations. Already

underway is a program of liaison and education,

with officials visiting the offices of professionals

to provide assistance on tax matters.

See more at:

http://tax-

news.com/news/Egypt_To_Up_Scrutiny_Of_SelfE

mployed_Persons____67533.html

US & Canada: Public Finance Round up

[16 March 2015, Public Finance International]

Posted on 13 March: A round-up of recent public

finance stories from the US & Canada you might

have missed.

Round up:

Obama to announce student loan reforms as

education department stalls: President Barack

Obama will announce sweeping borrower-

friendly recommendations to fix the $1.1

trillion federal student loan system that, taken

together, amount to an indictment of the US

Department of Education's inability to protect

borrowers from ever-increasing burdens. (The

Huffington Post)

Fannie Mae putting taxpayers back at risk with

careless behaviour, probe warns: Nearly seven

years after it was bailed out from the housing

market crash, mortgage giant Fannie Mae is

still engaging in behaviour that could

precipitate future financial crises and taxpayer

losses, a government watchdog warns in a

report. (The Washington Times)

Shrinking pool of low-skilled Canadians leading

to foreign-worker growth: The pool of low-

skilled Canadian workers is shrinking fast as

more students go on to higher education, a

development the Parliamentary Budget Officer

says helps explain the growth in the

Temporary Foreign Worker Programme. (Globe

and Mail)

Nevada bill would allow more government

entities to invest public money: Nevada

lawmakers are reviewing a bill allowing local

governments and certain state funds to more

broadly invest public money. (The Republic)

Bipartisan House plan moves to bolster state

pension fund: House leaders facing a $7.2bn

shortfall for state worker retirement pensions

have unveiled a plan to increase what Texas

pays but also upping employee contributions.

(The Monitor)

McCrory budget includes 1st wave of

recommendations in newest NC government

reform effort: Recommendations from a

government reform study could save $71m

over two years if lawmakers approve them,

but they won't really be successful unless the

state makes efficiency a permanent objective,

Governor Pat McCrory‘s budget director said

Tuesday. (The Daily Journal)

See more at:

http://www.publicfinanceinternational.org/news/

2015/03/us-canada-round-up-round-up-obama-

to-announce-student-loan-reforms-as-education-

department-stalls-and-more/

Your Daily News 16 March 2015

5

Asia Pacific: Public Finance Round up

[16 March 2015, Public Finance International]

Posted on 13 March: A round-up of recent public

finance stories from Asia Pacific you might have

missed.

Round up:

Asia rushes to lower rates, but maybe not fast

enough: Central banks across Asia are racing

to cut interest rates, but they may not be

doing it fast enough to stave off economic

malaise. (New York Times)

China‘s fiscal deficit makes sense: BLOG:

China‘s central government deficit is projected

to be the largest in six years. The official

government deficit was originally forecast to

be around 2.3% of GDP, but the actual deficit

will likely come close to 2.7%, according to

Finance Minister Lou Jiwei. This is because

China is committed to expanding its fiscal

policy in the face of a domestic and global

economic slowdown, as well it should be. (The

Diplomat)

Australian coalition threatens taxpayer funded

advertising blitz on pension changes:

Taxpayers appear set to bankroll new

advertising on the Abbott government‘s

proposed pension changes to counter what the

prime minister terms a ‗dishonest‘ public

campaign underway in South Australia. (The

Guardian)

Modi‘s budget slashes environmental funding

for India: Environmentalists in India have

expressed alarm over the new budget of the

government of Prime Minister Narendra Modi,

which they say heralds substantial cuts in

environmental programmes and fails to

address the country‘s worsening pollution and

vulnerability to climate change. (Reuters via

Business Standard)

IMF cuts economic forecast for Bangladesh,

citing political violence: The Bangladesh

economy will grow by about 6%, less than

previously forecast, in the year to end-June if

political violence persists, the International

Monetary Fund said on Tuesday. (Reuters via

Daily Mail)

See more at:

http://www.publicfinanceinternational.org/news/

2015/03/asia-pacific-round-up-asia-rushes-to-

lower-rates-but-maybe-not-fast-enough-and-

more/

Middle East & Africa: Public Finance Round

up

[16 March 2015, Public Finance International]

Posted on 13 March: A round-up of recent public

finance stories from the Middle East & Africa you

might have missed.

Round up:

MF says not ready to resume funding to

Zimbabwe: The International Monetary Fund

has ruled out resuming loans to Zimbabwe

until the southern African country has retired

its longstanding external debt of about $10bn.

Zimbabwe‘s government is seeking new loans

to help bail out its depressed economy. (Voice

of America)

Cameroon asks public to aid soldiers and

refugees: Cameroon‘s government is asking

the public to donate money, food and clothing

to help offset the growing needs of its soldiers

and refugees, including those respectively

fighting and fleeing the Boko Haram

insurgency on its northern border with Nigeria.

(Voice of America)

Bahrain to investigate alleged waste of $1.1bn

of public money: Bahraini legislators plan to

investigate alleged squandering of 400 million

dinars ($1.06bn) of public funds by

government departments and state-linked

companies, a Manama newspaper reported on

Sunday. (Reuters Africa)

$940m IMF bailout not enough, says Ghana

VP: Vice President Kwesi Amissah-Arthur says

the 940-million dollar package to be given to

Ghana by the International Monetary Fund is

not enough. (Starr fm online)

South Africa‘s Zuma rebuffs demands to re-

pay state for home upgrade: South African

President Jacob Zuma deflected demands by

the opposition to pay back some of the money

used in a $23m (£15.3m) state-funded

security upgrade to his rural home, saying the

government had yet to decide whether he

should do so. (Reuters)

See more at:

http://www.publicfinanceinternational.org/news/

2015/03/middle-east-africa-round-up-imf-says-

not-ready-to-resume-funding-to-zimbabwe-and-

more/

Your Daily News 16 March 2015

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Spending on the US crumbling infrastructure

[16 March 2015, Brookings] Posted on 10 March:

By David Wessel: Larry Summers recently said

something startling: ―At this moment . . . the

share of public investment in GDP, adjusting for

depreciation, so that‘s net share, is zero. Zero.

The US is not net investing at all, nor is Western

Europe,‖ he told a Princeton University audience.

In other words, total federal, state, and local

government investment is enough to cover only

the amount of wear and tear on bridges, roads,

airports, rails, and pipes. ―Can that possibly

make sense?‖ asked the former Treasury

secretary, who has been campaigning for more

government spending on infrastructure.

Read more:

http://www.brookings.edu/research/opinions/201

5/03/10-spending-crumbling-infrastructure-

wessel

Food Security: Should The GCC Be Worried?

[16 March 2015, Gulf Business] Oil revenues

cushion the GCC from any major food crisis but

with the region still reliant on imports, countries

face real supply chain risks, wrote Mary Sophia

on 14 March.

Food security has long been a burning issue in

the GCC given the region‘s over-dependence on

food imports. according to a report by investment

bond alpen Capital, countries such as Qatar,

Bahrain and the uaE import anywhere between

80 to 90

per cent of their food, leaving them dangerously

vulnerable to an increase in global food prices.

How much the GCC was dependent on food

imports was further laid bare during 2007, when

a global food shortage forced many countries to

halt exports, causing the price of staples to surge

almost 59 per cent in the region.

In the past, such incidents have prompted the

Gulf countries to ramp up their domestic

agricultural production. Though such steps were

necessary, the lack of arable land and scare

water resources were serious obstacles.

Since then, many countries have also invested in

agricultural farmland across the world in order to

ensure food security.

But such investments have often been

accompanied by veiled criticisms of wealthy Gulf

countries eating into the food supply of less-

developed nations.

Ensuring food security through such channels is a

viable long-term option, some experts argue,

while others believe that the region does not

have an immediate threat of being cut off from

food supplies just yet.

One of the biggest buffers that the Gulf nations

have from food insecurity is their oil revenue,

according to some experts. Thanks to their large

fiscal reserves, GCC countries are able to

purchase food reserves and store them for times

of need.

Read more:

http://gulfbusiness.com/2015/03/food-security-

gcc-worried/

CENTRAL AMERICA: Daily News 16/03/2015

[16 March 2015, Central America Data] Posting

of Daily News from around the region.

Summaries

Report on Construction Projects - January

2015: A bus terminal, a wastewater treatment

plant and several residential developments top

the list of environmental impact studies

presented in January in Costa Rica.

Panama: Intervention in Banca Privada

D'Andorra; The Superintendency of Banks has

given the order for Administrative and

Operational Takeover after the US government

accused the Group BANCA PRIVADA

D'ANDORRA of alleged money laundering.

Your Daily News 16 March 2015

7

Guatemala: Agreements on Advanced Pricing

with SAT: The Tax Authority announced

special audits in companies with "related

parties abroad", which can be avoided by

presenting an Agreement on Advance Pricing.

Modifications to Tender for Urban Renewal of

Colon: A reduction has been made from seven

to two in the number of days that companies

have to correct their proposals and the net

capital companies must possess in order to

participate has been lowered to $150 million.

Nicaragua: Business Mission to Chile:

Preparations are being made for a trip by a

group of companies traveling from April 20th

to 24th to the South American country to

explore business opportunities under the trade

agreement which has been in force since

2012.

Nicaragua Gets Off "Gray List": The Financial

Action Task Group has removed Nicaragua

from the list of countries that pose risks

relating to money laundering and terrorist

financing.

Panama: Initiative to Reduce Sulfur in

Gasoline: The bill which aims to reduce the

sulfur content in diesel and gasoline would

give importers and distributors up to 12

months to renegotiate supply contracts once it

comes into effect.

Nine Months to Refund VAT to Exporters: In El

Salvador the export sector claims that delays

of up to nine months are being reported on tax

refunds due from the Treasury, which should

take no more than 30 days.

Source:

http://us2.campaign-

archive1.com/?u=4ef00faac80ef7aee4649e335&i

d=1955e376d7&e=6590d68ce0

AUSTRALIA: Family businesses face an age-

old problem

[16 March 2015, Business Spectator] Posted 12

March, by Tony Kaye: Collectively, we‘re all living

longer - a biological fact highlighted earlier this

month with the release of the latest

Intergenerational Report by the federal

Treasurer, Joe Hockey.

According to the report, the average Australian

life expectancy at birth is forecast to reach 95.1

years for men and 96.6 years for women by

2054-55, compared with 91.5 years and 93.6

years today.

And the number of Australians aged over 65 is

projected to more than double from the current

level by 2055.

―In general, Australians are living longer and

healthier lives than in years past, and are more

active in their older years,‖ the Intergenerational

Report stated. ―Over the next 40 years, Australia

will need to embrace the potential of this talented

older population group, particularly by valuing

their increased and ongoing engagement in the

workplace and community.‖

That‘s true across the working population as a

whole, but Australia‘s ageing process also has

specific ramifications for family businesses -

which will increasingly need to grapple with the

dynamics of having multiple generations working

within their business, and with the complexities

of succession as older members choose to

prolong their time at the helm rather than retire.

Read more:

https://www.businessspectator.com.au/article/20

15/3/12/family-business/family-businesses-face-

age-old-problem

China's route to riches

[16 March 2015, BBC News] Posted 12 March. By

Linda Yueh, Chief business correspondent: This is

the billion dollar question. How did a poor

communist country transform itself into having

the second most billionaires in the world, after

the United States, in just over a generation?

Hurun, which tracks the wealthy, says that they

have identified 400 billionaires in China, but there

are another 800 yet to be profiled.

The author went to Shanghai to find out, since

it's one of the cities where the rich dwell. Hurun

estimates that one in seven millionaires in China

live in Shanghai. One in six live in Beijing.

It's an extraordinary change from a centrally

planned economy where everyone was at least

nominally equal. But, like in George Orwell's

Animal Farm, some animals are more equal than

others. Rich officials and their offspring, the

princelings, have always sat uncomfortably within

a communist system.

Indeed, communism erased inherited wealth in

China.

Your Daily News 16 March 2015

8

Hurun estimates that more than half (55%) of

millionaires started their own businesses. Of the

rest, 10% made their fortunes from the stock

market, 15% from real estate, and 20% are

highly paid executives

Of the super-rich - those with 100m yuan ($16m;

£10m) or more - the number of entrepreneurs

stands out even more. Some 80% of the super-

rich own their own firms and 15% made their

money from real estate, while another 5% made

a fortune in stocks.

Read more:

http://www.bbc.co.uk/news/business-31832200

INDIA: As oil prices fall, trade deficit shrinks

to 17-month low in February

[16 March 2015, Times of India] Posted 14

March. TNN: NEW DELHI: Driven by a sharp fall

in oil prices, India's trade deficit contracted to a

17-month low of $6.85 billion in February as

imports shrank at a faster pace than exports.

Exports fell 15% to $21.55 billion compared with

$25.35 billion a year ago, the commerce

department said in a statement on Friday.

Imports were down 15.7% to $33.7 billion.

Lower price of crude meant that petroleum

product exports fell almost 55% from $4.6 billion

in February to $2.1 billion. This didn't only result

in the share of petrol and diesel and other

products in India's export basket falling from

over 18% to a shade under 10%, but also

resulted in a change in the pecking order. While

engineering exports ($5.1 billion) remained the

top-most item in the basket, gems and jewelry

(despite a 3.5% decline to $3.5 billion) overtook

oil products to occupy the second spot.

Read more:

http://timesofindia.indiatimes.com/business/india

-business/As-oil-prices-fall-trade-deficit-shrinks-

to-17-month-low-in-

Feb/articleshow/46560941.cms

In China, a Building Frenzy‟s Fault Lines

[16 March 2015, New York Times] Posted 13

March. By David Barboza: As the real estate

market in the United States was collapsing in the

mid-2000s, Wall Street went in search of new

terrain, and found it in China. All across the

country, from Beijing to Shenzhen, sprawling

housing developments and business districts

were popping up, seemingly overnight. Real

estate prices were soaring. Western banks, hedge

funds, private equity firms and other investors

wanted a piece of the action.

Billions poured into Chinese real estate, and big

foreign financial firms hunted for the next hit —

the small bet that investors could ride to great

heights. One of those firms, Credit Suisse,

scoured the landscape and in 2007 discovered

Kaisa, a relatively small property developer in

Shenzhen that mostly bought and rehabilitated

distressed properties. Credit Suisse brokered a

$300 million investment deal for Kaisa, and two

years later, it went public. Its chairman, Guo

Yingcheng, posed for photographs on the floor of

the Hong Kong Stock Exchange holding a statue

of a bull, which seemed to signify hopes for his

company‘s coming bull run. His colleagues

poured Champagne into an ice sculpture of the

company‘s stock code: 1638.

With the $450 million raised in the initial public

offering, Kaisa embarked on an aggressive

expansion into 20 more cities. It formed a

partnership with Marriott hotels and announced

plans to build one of the world‘s tallest buildings.

Kaisa shares skyrocketed, helping lift the

fortunes of its Western patrons, including the

Carlyle Group, an American private equity firm.

Then came the fall. The real estate market

slumped, dragging down the rest of the Chinese

economy. Developers, in particular, were under

pressure, as foreign investment dried up.

Read more at:

http://www.nytimes.com/2015/03/15/business/d

ealbook/in-china-a-building-frenzys-fault-

lines.html

China plays down India's worry over

growing sea clout

[16 March 2015, Economic Times] Posted 14

March. PTI: NEW DELHI: Amid concerns over its

growing assertiveness in South China Sea, China

on Saturday said there was no "insecurity" as

well as no restriction on the freedom of

navigation in the region.

"The problem does not exist," Chinese

Ambassador Le Yucheng said referring to

freedom of navigation and security in the

resource-rich South China sea.

Your Daily News 16 March 2015

9

Describing it as a stable region, the envoy said

South China Sea was key for China's international

trade. The envoy had words of praise for the

Prime Minister Manmohan Singh, who he said had

done remarkably well to lift India's economy.

"China, more than anyone else, is interested in

ensuring security of the waters. 70 per cent of

Chinese goods come and go through the waters,"

he said.

Asked about the mentioning of the South China

Sea dispute in the India-US joint statement

issued during President Barack Obama's visit

here in January, Le said China took note of it and

that there was no problem of security or any

issue relating to freedom of navigation in the

region.

"We noticed the statement about the South China

sea. The South China sea remains stable and

secure. Nothing happened. There has been no

incident," Le said at an event.

China has an acrimonious relationship with

Vietnam, the Philippines, Malaysia and Brunei

over the South China Sea issue.

Read more at:

http://economictimes.indiatimes.com/articleshow

/46564341.cms

Government to ease process of doing

business in India: says Arun Jaitley

[16 March 2015, Economic Times] Posted 14

March. PTI: LONDON: The government is fairly

determined and is introducing changes to ease

the process of doing business and attract

investments in India while trying to rationalise

and lower taxes, Finance Minister Arun Jaitley has

said.

He also said that the GDP growth rate this year

would be 7.5% and hopefully higher in the next

year.

"We are trying to rationalise taxes, lower taxes

and introduce a non-adversarial and fair system

of taxation. There is a raging a raging ideological

battle between reform and obstruction. The

government is fairly determined.

"The roadmap for us is very clear. We need a lot

of investment in India and we need to ease the

process of doing business in India and therefore

slowly we are introducing changes in that

direction," he said addressing a gathering of

international investors on 'Investment

Opportunities in India' here last night.

Read more at:

http://economictimes.indiatimes.com/articleshow

/46563908.cms

Ex-NSA director says: “China has hacked

every major corporation in U.S.”

[16 March 2015, CNN] The Chinese government -

seeking to steal valuable secrets - has hacked

into the computers at every major American

company, according to the nation's former spy

director.

Mike McConnell [pictured], who served as

director of national intelligence under President

George W. Bush, made the comments during a

speech at the University of Missouri on 12 March.

"The Chinese have penetrated every major

corporation of any consequence in the United

States and taken information," he said. "We've

never, ever not found Chinese malware."

He said the malware lets Chinese spies extract

information whenever they want. McConnell, who

also led the NSA from 1992 until 1996, continues

to investigate hacks as a high-ranking adviser to

Booz Allen Hamilton (BAH).

He listed victims he has come across during his

investigations: U.S. Congress, Department of

Defense, State Department (which is currently

dealing with Russian hackers) and major

corporations.

Your Daily News 16 March 2015

10

The U.S. government has said it has caught

Chinese spies stealing blueprints and business

plans. Last year, federal prosecutors took the

unprecedented step of filing formal criminal

charges against five Chinese government spies

for breaking into Alcoa (AA), U.S. Steel Corp. (X),

Westinghouse and others.

But McConnell's assertion is different. It would

mean that no large company can escape the

massive theft of American entrepreneurial ideas.

Read more:

http://money.cnn.com/2015/03/13/technology/s

ecurity/chinese-hack-us/index.html

Dubai Water Canal Project‟s Phase 1 Almost

40% Complete - RTA

[16 March 2015, Gulf Business] Posted on 15

March. By Mary Sophia: The first phase of the

Dubai Water Canal project is almost 40 per cent

complete, the Chairman and Executive Director of

Roads and Transport Authority (RTA) Matter Al

Tayer said.

The work in the Phase 1 of the mega project

includes the construction of a bridge over the

Sheikh Zayed Road comprising of eight lanes in

each direction.

―The contractor of phase I of the project started

construction works in the Northern Bridge on the

Sheikh Zayed Road in the direction of Dubai,

nearby the red line of Dubai Metro,‖ said Al

Tayer.

―Almost 50 per cent of excavation works and

casting of concrete piles have been completed,

and the Northern Bridge is expected to open in

the fourth quarter of this year. The construction

of the bridge in the direction from Dubai to Abu

Dhabi would follow. The company also embarked

on constructing service roads in the Business Bay

area after shifting the existing utility lines in

site.‖

Meanwhile the completion rate in phase II, which

includes construction of bridges in Al Wasl and

Jumeirah road, reached 25 per cent, he added.

Read more:

http://gulfbusiness.com/2015/03/dubai-water-

canal-projects-phase-1-almost-40-complete-rta/

UAE‟s Dana Gas To Invest $350m In Egypt

[16 March 2015, Gulf Business] Posted on 15

March. Reuters: Investments include drilling

nearly 40 new development wells, a similar

number of workovers on existing wells, building

new pipelines and debottlenecking an existing

plant.

Dana Gas will invest $350 million in Egypt over

the next 30 months and expects to receive

outstanding arrears from the government by the

end of 2016, the United Arab Emirates company‘s

chief executive said on Saturday.

The investments include drilling nearly 40 new

development wells, a similar number of

workovers on existing wells, building new

pipelines and debottlenecking an existing plant,

Patrick Allman-Ward told Reuters at a weekend

investment summit at the Red Sea resort of

Sharm El-Sheikh.

He said he expected Egypt to pay Dana $185

million in arrears by the end of 2016, but added

if they failed to do so, the company would

recover the money by the end of 2018 by selling

the government‘s share of condensate exports

under a production agreement.

―The mechanism will allow us to recover the

current overdue receivables over the course of

time‖, he said.

Egypt has delayed payments to oil and gas firms

as its economy has been hampered by four years

of instability since the fall of Hosni Mubarak in

2011.

The oil ministry said last week it would repay its

remaining $3.1 billion debt to foreign oil and gas

companies by mid-2016, a year later than

previously indicated.

Read more:

http://gulfbusiness.com/2015/03/uaes-dana-gas-

invest-350m-egypt/

INDIA: E-commerce companies fuel growth

in brick-and-mortar real estate

[16 March 2015, Times of India] Posted 15

March. By Anshul Dhamija & Nauzer Bharucha,

TNN: For companies that do their business

online, e-commerce giants are spending a lot on

brick and mortar. Just 12 hours before the

Your Daily News 16 March 2015

11

country rang in the New Year, cab service

provider Ola signed on 20,000 sq ft of prime

office space at Embassy Golf Links (EGL), a

premium Grade A business park located just 20

minutes away from Bengaluru's city center of MG

Road.

That was the last available office space at the 21-

office block EGL campus, which charges tenants

approximately Rs 100 per sq ft per month as

rent.

While the office transaction is minuscule in the

context of India's over 400 million sq ft leased

office market, the deal signaled the coming of

age of the country's new sunrise sector.

Consumer internet firms clearly, are competing

for marquee office spaces with Fortune 500

companies who have, for the longest time,

dominated India's tenanted office market.

Read more:

http://timesofindia.indiatimes.com/business/india

-business/E-commerce-companies-fuel-growth-

in-brick-and-mortar-real-

estate/articleshow/46569471.cms

Apple Watch: Most people not interested in

buying

[16 March 2015, Times of India] Posted 14

March. Reuters: SAN FRANCISCO: Apple Inc's

new smartwatch may be a tough sell, with 69%

of Americans indicating they are not interested in

buying the gadget, according to a Reuters/Ipsos

poll.

However, the survey also showed limited

awareness of the watch. The poll was taken after

Apple chief executive Tim Cook rolled out the

product on March 9, and only about half of

respondents said they had heard news of the

timepiece in the last few days.

Also, in an encouraging sign for Apple, roughly

13% of survey respondents who did not own an

iPhone said that they would consider buying one

in order to buy an Apple Watch, which needs an

iPhone to work fully.

Apple overcame skepticism about the iPad and

iPod when they first debuted, but the survey

suggests that the world's largest technology

company has work to do to make the watch

ubiquitous.

The new watch, a test of Cook's leadership, is the

company's first new product in five years, and it

hits stores on April 24.

It allows users to check email, listen to music and

make phone calls from their wrist. Apple will sell

various versions, from a $349 'sport' edition to a

$17,000 18-karat gold timepiece.

Ipsos surveyed 1,245 Americans online between

March 9 and March 13. The data was weighted to

reflect the US population and has a credibility

interval of plus or minus 3.2 percentage points.

Apple did not immediately respond to a request

for comment on the poll.

More than half of respondents, 52%, agreed with

the statement that smartwatches are a "passing

fad."

One-quarter of respondents said they were

interested in purchasing the Apple Watch, but

69% said they had no desire, and 6% said they

were unsure.

Read more:

http://timesofindia.indiatimes.com/tech/tech-

news/Apple-Watch-Most-people-not-interested-

in-buying/articleshow/46562075.cms

INDIA: Government mulls priority sector

lending certificates for banks

[16 March 2015, Business-Standard] Press Trust

of India, New Delhi on 15 March: The Indian

Government proposes to introduce Priority Sector

Lending Certificates (PSLCs), on the lines of

carbon credit trading, wherein banks can earn

premium for exceeding targets.

Your Daily News 16 March 2015

12

This will be a part of the government's "re-

orientation" of the priority sector lending

schemes where banks are given targets to

provide credit to specific sectors, like exports and

agriculture.

"PSLCs will provide a market-driven incentive for

efficiency and enable banks to sell their surplus

lending and thus earning a premium for their

efficiency/geographical spread," sources said.

Earlier this month, an RBI committee had

recommended introduction of PSLCs to enable

banks "to meet their PSL requirements even

while leveraging their comparative advantage in

lending".

The changes proposed in the priority sector

guidelines are aimed at re-aligning the norms

with the significant change in the economic

structure, contribution by various sectors to GDP

and the demographic profile.

So far total credit extended by banks in priority

sector lending is Rs 21,54,356.29 crore.

Among the changes proposed, renewable energy

sector is likely to be accorded the priority sector

lending status, up to Rs 10 crore loans.

[NOTE: A crore (abbreviated cr) is a unit in the

Indian Numbering System equal to ten million

(10,000,000), which is written in these regions as

1,00,00,000, equal to a hundred lakh (a lakh is

equal to one hundred thousand and is written as

1,00,000).]

Read more:

http://www.business-standard.com/article/pti-

stories/govt-mulls-priority-sector-lending-

certificates-for-banks-115031500195_1.html

Has the US Federal Reserve's 'patience'

been exhausted?

[16 March 2015, Economic Times] Posted 15

March. Reuters: LONDON: For a world economy

coming to terms with a soaring dollar and a

plunge in oil prices, this week will be all about the

U.S. Federal Reserve's policy meeting and its

intentions on interest rates.

A combination of the European Central Bank

printing lots of euros and expectations of a first

U.S. rate rise has caused turmoil on the foreign

exchanges and in emerging markets.

The euro, which peaked at nearly $1.40 in the

middle of last year, is now languishing around

$1.05 and apparently headed for parity.

After successive months of strong jobs data,

expectations have been growing that the Fed will

point towards a June rate rise by dropping a

pledge to be "patient" in considering such a

move.

But the dollar's surge, crimping U.S. exports and

cutting imported inflation, could cause its

policymakers to pause for thought.

Read more at:

http://economictimes.indiatimes.com/articleshow

/46572499.cms

INDIA: AECOM offers advisory blueprint for

„Make in India‟ projects

[16 March 2015, Economic Times] Posted 15

March. By PTI: NEW DELHI: Bullish on India, US-

based infrastructure design and consultancy giant

AECOM has offered to provide advisory services

and prepare blueprints for various projects under

the government's Make in India, Smart Cities,

Clean India and Clean Ganga initiatives.

The USD 20-billion group, which currently has

2,500 employees in India and plans to take it to

4,000 soon, is looking to actively participate in

these initiatives of Prime Minister Narendra Modi

across various sectors.

Read more at:

http://economictimes.indiatimes.com/articleshow

/46572873.cms

Assocham's proposal for 'Chinese

Manufacturing Zone' in Uttar Pradesh

[16 March 2015, Economic Times] Posted 15

March. By PTI: LUCKNOW: With around 50

Chinese firms evincing interest towards

investment in Uttar Pradesh [Northern India],

industry body Assocham is working on a proposal

for setting up a 'Chinese Manufacturing Zone' in

the state.

Around 50 Chinese companies were in contact

with the industry body, Assocham's secretary

general D S Rawat told PTI. He said that these

companies want to invest in India through a

'manufacturing zone' and as per their

requirement UP is the most suitable place.

Your Daily News 16 March 2015

13

"Assocham is working on a project, whose

proposal will be submitted to Chief Minister

Akhilesh Yadav after three weeks. In this

proposal, we will ask the government to set up a

Chinese manufacturing zone.

"If the government provides land and some

rebate in taxes to these willing companies then

they will create a zone on their own. They want

to bring 100 other companies with them," Rawat

said.

Read more at:

http://economictimes.indiatimes.com/articleshow

/46573017.cms

India must seize chance to be top economy,

IMF chief Christine Lagarde says

[16 March 2015, Times of India] By Surojit

Gupta, TNN: India has an opportunity to emerge

as one of the world's most dynamic economies

but it needs to implement the planned reforms

and open up more fully to the world, IMF chief

Christine Lagarde [pictured] told TOI in an

exclusive written interview.

Lagarde, who begins her India visit on Monday,

praised the steps taken by PM Narendra Modi and

RBI governor Raghuram Rajan to steer the

economy to a higher growth trajectory and called

for bringing more women into the workforce to

boost growth.

"India is indeed a bright spot in the global

economy, and economic developments hold much

promise. I believe India has an opportunity to

become one of the world's most dynamic

economy, and my message during my visit here

will be: seize it!," Lagarde told TOI.

The IMF chief also lauded the government's

financial inclusion plan Jan Dhan and said the

JAM trinity (Jan Dhan, Aadhar and Mobile) is an

important step towards overhaul of the subsidy

regime.

Read more at:

http://timesofindia.indiatimes.com/business/india

-business/India-must-seize-chance-to-be-top-

economy-IMF-chief-Christine-Lagarde-

says/articleshow/46578103.cms

Should Australia join the Asian

Infrastructure Investment Bank?

[16 March 2015, Business Spectator] By Stephen

Grenville: Should Australia join the Chinese-

sponsored Asian Infrastructure Investment Bank?

As often happens in international affairs, the

answer is not found in the technical pros and

cons of the proposal, but in the politics.

America seems to have strongly encouraged its

close Asian friends (Japan, South Korea and

Australia) not to join, concerned about China's

growing influence in Asia. But now that the UK

has decided to become a founding member, the

pressure is on the hold-outs to sign up.

There is no doubt that Asia needs much more

infrastructure; that China has a lot of experience

at building it; and that China has massive savings

to help fund it. There is no doubt, too, that there

would be some overlap with the World Bank and,

perhaps more obviously, with the Asian

Development Bank.

The AIIB does raise some questions. Would some

competition between rival funding institutions be

helpful? Would this new channel add to the

resources going into infrastructure, or just re-

channel the same funds? Is Australia more

effective in improving AIIB governance by joining

in from the start or by playing hard-to-get?

To start, the AIIB is just one more example of

devolution away from the centralised global

economic institutions created at Bretton Woods in

1944 and towards a more regional framework.

Your Daily News 16 March 2015

14

The establishment of the Asian Development

Bank in 1966 was an early example. The

devolution process in Asia was given a huge

boost by the Asian financial crisis of 1997-8.

Many policy-makers in the region still hold the

view that the IMF failed to understand the crisis,

and from then on, they realised they should work

to build regional institutions.

Read more:

www.businessspectator.com.au/article/2015/3/1

6/asia/should-australia-join-asian-infrastructure-

investment-bank

INDIA: Government against retro tax

legislation, says Arun Jaitley

[16 March 2015, Times of India] By Kounteya

Sinha, TNN: LONDON: Finance minister Arun

Jaitley [pictured] has said the government will

not move in the direction of "retrospective

legislation on tax issues", referring to the latest

controversy surrounding Cairn Energy and Cairn

India.

"We have stuck to our word," he said. "For any

assessee, if he has any grievance against the

legacy issues of the previous government, they

have the due process to resort to. There is huge

enthusiasm over India and the country is back on

the radar of international investors."

Jaitley also said that wherever a judicial process

had decided an issue, the government had

chosen not to challenge it. On the issue of fresh

notices or action, any assessing officer who

wanted to take such action would have to have

the clearance of the Central Board of Direct

Taxes, and "legacy claims and notices" that had

been initiated by the previous UPA government

need to be sorted out through a due judicial

process, he added.

Jaitley, who had meetings with British Prime

Minister David Cameron and Chancellor of the

Exchequer George Osborne on Saturday, said he

was confident that India's GDP will see a growth

of 7.4% this year and 8% next year.

In an interview to TOI, Patricia Hewitt, chair of

the UK India Business Council (UKIBC), said she

was disappointed by the news that Cairn Energy

has been hit with a demand for $1.6 billion in

retrospective taxes.

Read more at:

http://timesofindia.indiatimes.com/business/india

-business/Govt-against-retro-tax-legislation-

FM/articleshow/46578237.cms

AUSTRALIA: New car sales rise in February

[16 March 2015, Business Spectator] By Mitchell

Neems: The Reserve Bank of Australia's February

rate cut appears to have produced the adrenaline

shot to the economy it was intended to,

according to Australian Bureau of Statistics (ABS)

data.

The latest figures show new vehicle sales rose a

seasonally adjusted 2.9 per cent to 95,737 in the

month. The figure compares to an upwardly

revised 93,035 in January. Total sales are now a

seasonally adjusted 4.1 per cent higher than a

year earlier.

In February, the RBA cut the official cash rate to

2.25 per cent, the lowest point on record in a bid

to stimulate the local economy amid a low price

environment for commodities and a weakening

Australian dollar.

The Northern Territory led the strong

performance, with new car sales in the Top End

lifting 22.4 per cent in the month, followed by a

rise of 8.8 per cent in South Australia and 5.9 per

cent in the ACT

Read more at:

www.businessspectator.com.au/news/2015/3/16/

economy/new-car-sales-rise-february

Your Daily News 16 March 2015

15

AUSTRALIA: Agrarian socialists hold the

NSW power keys

[16 March 2015, Business Spectator] By Keith

Orchison: The ―conversation‖ in New South Wales

on power privatisation in the run-up to the March

28 state election has inevitably descended into a

shouting match, and the really important point at

issue -- how many voters are listening -- will only

become apparent on or after polling day.

In one sense the ―debate‖ only matters in the 5

per cent of the state that makes up the ―Greater

Sydney‖ conurbation stretching from the

Illawarra in the south to the Blue Mountains, and

north to the Central Coast plus the Hunter Valley

– home to most power consumers, most voters

and the two large distribution businesses from

which Mike Baird hopes to garner much of the

revenue from leasing the networks.

The rural distribution franchise holder will not be

offered for sale if the Coalition wins the election,

but voters who live in 90 per cent of the state

served by Essential Energy are still important

because their Legislative Council choices will help

decide whether Baird‘s parliamentary privateering

path is a molehill or a mountain.

Country power consumers in sprawling NSW pay

more for their energy than the urban types

because the network costs to reach them are

higher -- lower user density and more poles,

wires, transformers and so forth.

Read more:

http://www.businessspectator.com.au/article/201

5/3/16/election/agrarian-socialists-hold-nsw-

power-keys

AUSTRALIA: Uni deregulation plan looks

doomed

[16 March 2015, Business Spectator] AAP:

Independent senator Jacqui Lambie will leave her

hospital bed early to join other crossbenchers in

opposing the Abbott government's university

deregulation plan.

Labor and crossbenchers have criticised the

government for linking $150 million in annual

science funding to fee deregulation, putting at

risk the jobs of 1700 researchers.

Opposition higher education spokesman Kim Carr

flagged he'll be moving a motion condemning the

move on Monday, co-sponsored by the majority

of the crossbench.

A vote on the bill is due on Wednesday.

"It is time for the education minister to admit his

policy is unfair and accept defeat with good

grace," Senator Carr said in a statement.

Read more at:

http://www.businessspectator.com.au/news/201

5/3/16/national-affairs/uni-deregulation-plan-

looks-doomed

How to resolve residential mortgage

distress

[16 March 2015, Business Spectator] By Jochen

Andritzky: In housing crises, high mortgage debt

can feed a vicious circle of falling housing prices

and economic slowdown. As a result, more

households default on their mortgages and the

crisis deepens.

Last year‘s IMF Working Paper studies the

differences in the housing crises and policy

responses in Iceland, Ireland, Spain, and the

United States, and argues that crisis policies

geared to provide temporary debt service relief

for struggling households, followed by durable

loan modifications, can help break this vicious

circle.

Why policymakers worry about mortgage distress

The recent global financial crisis affected many

countries, but those with previous housing booms

and high mortgage debt typically suffered deeper

and longer recessions. One reason is that housing

busts and high debt can amplify the initial shock.

For instance, property markets may get flooded

from forced home sales by over-indebted

households. The resulting fall in house prices

then further reduces the wealth of all

homeowners and induces them to cut

consumption, which slows the economy even

more. We saw this cycle play out in the recent

housing crises in Iceland, Ireland, Spain, and the

United States, although with different intensity.

For sure, it is best to avoid housing-related

boom-bust cycles, as emphasised in previous

work on housing recoveries. However, once

mortgage default becomes widespread, a crisis

resolution strategy is needed. While the

experience shows that there is no ―one-size-fits-

Your Daily News 16 March 2015

16

all‖ solution, there are a few policies that could

help to curtail the downward spiral resulting from

severe housing busts.

Read more:

http://www.businessspectator.com.au/article/201

5/3/16/global-news/how-resolve-residential-

mortgage-distress

What your business can learn from startups

[16 March 2015, Smart Company] By Brad

Howarth: The start-up scene in Australia is

undoubtedly booming, as a growing number of

entrepreneurs set about launching businesses

they hope will achieve high growth and equally

high returns.

As a result, the overall understanding of what

makes a good start-up is becoming more

widespread. And while those lessons are readily

adopted and enhanced by each successive wave

of entrepreneurs, they are also proving applicable

to the broader rump of Australian small

businesses with more modest aspiration for

growth.

Read more: Five startups to watch in 2015

Indeed, the same tools and processes that help

startups achieve rapid growth can be harnessed

by any business, and give small business owners

back two of the commodities they most

desperately covet – time and money.

Read more at:

http://www.smartcompany.com.au/technology/4

6079-what-your-business-can-learn-from-

startups.html

CHINA: China's Li warns on growth

[16 March 2015, Business Spectator] DOW

JONES NEWSWIRES: China's premier has warned

that the world's No. 2 economy faces

"considerable" downward pressure and said that

Beijing has the tools to spur growth if the

slowdown hits employment.

At his annual news conference, Premier Li

Keqiang said "we are prepared to step up efforts"

to support the economy if a slowdown hits

employment. China has "more tools in the

toolbox" if that were to happen, he said.

Speaking for two hours before foreign and

domestic media, Mr Li touched on a range of

topics. He said China and the US have many

common interests, despite tensions, and played

down the idea of China threatening Washington,

while he also said China supports the territorial

integrity of Ukraine. He also called for stern

punishment for major polluters and dismissed the

idea that China is a source of global deflationary

pressure.

He also addressed violence along the China-

Myanmar border. On Friday four Chinese farmers

were killed and another nine injured after a bomb

was dropped on Chinese territory. China has

blamed a Myanmar warplane, while the Myanmar

government has blamed local rebels.

"We have the responsibility and the capacity to

firmly safeguard stability" and will protect "lives

and property" in the border area, Mr Li said.

On the economy, Mr Li said that China has room

to take further action because it has refrained

from massive stimulus measures in recent years,

despite a slowdown in growth.

Read more:

www.businessspectator.com.au/news/2015/3/16/

china/chinas-li-warns-growth

Markit China Business Outlook

[16 March 2015, Markit Economics] The Markit

Business Outlook Survey, which looks at

expectations for the year ahead, indicated

continued optimism at Chinese companies

regarding future business activity. Furthermore,

February‘s net balance of +30 percent is up from

+26 percent in the autumn to the highest reading

in a year. The latest reading is also above both

the BRIC and global averages (+28 percent and

+27 percent, respectively).

Key points:

Confidence towards activity, business

revenues

and new orders improves at start of 2015

Input price inflation set to remain muted

Slight fall in selling prices forecast

Read more at:

http://www.markiteconomics.com/Survey/PressR

elease.mvc/53cbf3089b0f4623b53fcaae834c4dd2

Your Daily News 16 March 2015

17

China becomes the world's third largest

arms exporter

[16 March 2015, BBC News] China has become

the world's third largest exporter of arms after

the US and Russia, according to a new report.

China overtook Germany, France and the UK in

exporting weapons between 2010 and 2014, said

the Stockholm International Peace Research

Institute (SIPRI).

China now accounts for about 5% of the world's

exports of arms. Three Asian countries -

Pakistan, Bangladesh and Myanmar - accounted

for more than two-thirds of those exports.

The world's second largest economy also had 18

African nations as clients during the five-year

period, according to the study, which said the

data reflected the volume of arms deliveries and

not the financial value of the deals.

Read more at:

http://www.bbc.co.uk/news/technology-

31901493

Markit Global Business Outlook

[16 March 2015, Markit Economics] The Markit

Global Business Outlook Survey, which looks at

expectations for the year ahead across 6,100

companies, found optimism to have fallen to a

post-financial crisis low in February. The waning

largely reflected a fading of sentiment from last

year‘s peaks in the US and UK, and masks a

welcome upturn in sentiment in the Eurozone,

China and Japan.

Key points:

Expectations regarding activity and

employment hit new survey lows in February

Softer US and UK outlooks contrast with better

sentiment in Eurozone, Japan and China

Outlook remains weak in Russia

Global price pressures pick up from October‘s

low, but deflation risk rises in China

Read more at:

http://www.markiteconomics.com/Survey/PressRel

ease.mvc/a3d006c9f750422ba99dab1c70185af1

Markit Japan Business Outlook

[16 March 2015, Markit Economics] The Markit

Business Outlook Survey, which looks at

expectations for the year ahead, signalled

strengthened confidence at Japanese private

sector companies in February, with the overall

net balance posting at +16 percent, up from +13

percent in October. However, sentiment in Japan

is the lowest out of the 12 major countries

surveyed.

Key points:

Business activity forecasts more optimistic

than last autumn…

…but remains subdued by global standards

Positive expectations for employment

Read more at:

http://www.markiteconomics.com/Survey/PressR

elease.mvc/09bd3643a09b4ff4b8bf73f59554f0fe

Markit U.S. Business Outlook

[16 March 2015, Markit Economics] The Markit

Business Outlook Survey, which looks at

expectations for the year ahead across 650 US

private sector companies, highlighted that

business sentiment remained positive in

February, but the degree of optimism moderated

to a post-crisis low. At +24 percent, down from

+31 percent in October 2014, the net balance of

firms expecting a rise in business activity over

the year ahead was the lowest since the survey

began in late-2009.

Key points:

Your Daily News 16 March 2015

18

U.S. private sector firms report weakest

business optimism since the survey began in

2009

Job hiring intentions moderate in February

Input price expectations pick up from last

October‘s survey-record low

Read more at:

http://www.markiteconomics.com/Survey/PressR

elease.mvc/8b2334e3a96e41718d3dada5d8ced8

e8

Markit India Business Outlook

[16 March 2015, Markit Economics] The Markit

India Business Outlook survey points to sustained

optimism among Indian companies. However, the

net balance of +26 percent for overall output is

the lowest in one year and below the both the

BRIC and global averages. Weaker degrees of

sentiment have been recorded across the

manufacturing and service sectors, with the

respective net balances registering +24 and +28

percent in February.

Key points:

Growth of both output and new business is

forecast to soften

Employment is set to expand at slower pace

Inflation rates projected to ease

Read more at:

http://www.markiteconomics.com/Survey/PressRele

ase.mvc/6c245b71d89a4f85b5eb978967566cd1

AUSTRALIA: Cheques? A dying breed,

statistics show

[16 March 2015, Finance Rising] Posted 13

March: By Leighann Morris: As a payment

method, cheques are on the way out, or so

proves recent Australian statistics. Usage

declined by 14% last year as card payments and

direct debits gained traction.

Between 2002 and 2014, cheques saw a 71%

decline. However, they are still used for property

settlements and major business payments,

according to the Australian Payments Clearing

Association (APCA).

As a result, banks are unlikely to cease from

accepting cheques as a payment method in the

foreseeable future, says APCA.

Read more:

http://www.financerising.com/2015/03/13/chequ

es-a-dying-breed-statistics-show/

Dubai‟s Emaar Says Not Part Of Egypt‟s

Capital City Project

[16 March 2015, Gulf Business] Reuters: Dubai‘s

Emaar Properties is not involved in a project to

build a new administrative capital city in Egypt, it

said on Monday after Egyptian and United Arab

Emirates media reports that the company would

participate in the ambitious scheme.

Emaar, 29 per cent owned by state fund

Investment Corporation of Dubai, last month filed

a request to list its Egyptian unit on Cairo‘s

bourse, and the UAE is a close ally of Egypt‘s

President Abdel Fattah al-Sisi.

But the company said in a Dubai bourse

statement on Monday that it was not involved in

developing the planned new capital to the east of

Cairo, which housing minister Mostafa Madbouli

said on Friday would take up to seven years to

build at a cost of $45 billion.

Read more at:

http://gulfbusiness.com/2015/03/dubais-emaar-

says-part-egypts-capital-city-project/

UAE Job Market Set To Boom This Year

[16 March 2015, Gulf Business] A stable economy

and an unwavering flow of investments will push

up hiring, writes Suhail Masri, VP of Bayt.com:

With a stable economy and an unwavering flow of

investments across various sectors, job seekers

in the UAE have a good reason to rejoice.

A recent survey done by Bayt.com has shown

that the job market in the country will be picking

up in the next three and 12 months.

The Bayt.com Middle East Job Index survey

(February 2015) reveals that 55 per cent of

Your Daily News 16 March 2015

19

employers in the UAE are hiring within the next

three months; 68 per cent are hiring within a

year‘s time. Up to 69 per cent of employers hiring

within the next three months are looking to fill up

to 10 positions in their companies.

Data from Bayt.com Middle East Job Index survey

suggests that junior executives (40 per cent) will

be highly in demand. UAE employers will be

mostly looking for accountants, sales managers,

customer service representatives and

receptionists, with banking/finance (38 per cent),

construction (34 per cent), oil, gas and

petrochemicals (31 per cent) and tourism (30 per

cent) emerging as the top industries that will be

hiring talents in the UAE.

Read more at:

http://gulfbusiness.com/2015/03/uae-job-

market-set-boom-year

Your Daily News 16 March 2015

20

News from Europe

Google to open first UK drop in „garage‟ to

fix 200,000 SMEs web problems

[16 March 2015, Business Matters] Posted on 13

March: Google has launched its first "digital

garage", a multi-million pound project it said

would help 200,000 UK SMEs harness the

internet to grow their business.

Its first ―garage‖ – a drop-in centre that will

advise on building a mobile website, developing

e-commerce and optimising Internet search

rankings.

To kick-off the project, Google will open The

Leeds Garage, a pop-up space based in Leeds

Dock, which will open its doors on March 30th as

part of a six-month pilot initiative.

Businesses are invited to get a digital ‗tune-up‘

and participate in master classes based on

Google‘s own expertise. Small businesses and

aspiring entrepreneurs are also invited to

participate in events organised by local partners

and take advantage of one-to-one mentoring

sessions, which can help any business become a

digital business.

Eileen Naughton, Google‘s managing director of

UK and Ireland, said less than 30 percent of

small businesses had an effective online

presence, and Google wanted to ―jump start‖ the

other 70 percent. ―We understand (small

businesses) don‘t have the benefit of large IT

tech infrastructure and development, and they

need our assistance in this area

disproportionately more than a large business

would,‖ she said in an interview.

―We‘ve never set up an outpost in a city – in a

garage – as we have here in Leeds, and offered

these services openly. For us, it‘s an exciting

experiment.‖

Read more:

http://www.bmmagazine.co.uk/news/google-to-

open-first-uk-drop-in-garage-to-fix-smes-web-

problems/

GOV.UK Announcements 16/03/2015

[16 March 2015, GOV.uk] Announcements by

GOV.uk on 12 and 13 March.

Announcements

Press release: Surge in British built vehicles

with British made components: New research

reveals that British cars are being made with

more British sourced components.

Consultation outcome: Trade unions: assured

registers of members: [Updated: Government

response published.] Views are sought on the

requirement for trade unions to give annual

assurance that membership registers are up to

date.

Guidance: Trade union: register of members -

new requirements: Explains the new

requirement for trade unions to provide

confirmation that their membership registers

are up to date.

Press release: Consumer champion Lynn

Faulds Wood to lead product safety review:

Leading consumer campaigner Lynn Faulds

Wood will lead a review of the UK‘s system for

the recall of unsafe products.

Research and analysis: Traineeships:

evaluation: [Updated: The full report was

published.] Findings from a survey of the first

year of the traineeships programme.

News story: Reunited - Sellafield‘s first ever

female apprentices: A guest article from

nuclear firm Sellafield Ltd - to celebrate

National Apprenticeship Week 2015.

Corporate report: BIS performance indicators:

enterprise: [Updated: 'Value Enterprise

Finance Guarantee funds used by businesses

(input indicator)' was replaced with the latest

version.]

Your Daily News 16 March 2015

21

The input and impact indicators on enterprise

as set out in the departmental business plan.

Guidance: Cyber security supplier to

government scheme: [Updated: Added

Protection Group International and CyberLytic

to the list of suppliers.]: Cyber security

supplier to government scheme guidance note,

application form and participating companies.

Guidance: Export control: licensing

performance dashboard: [Updated: Added

February 2015 performance data.] Trends in

licensing, with guidance on avoiding

processing delays for your export licence

applications.

Guidance: Export control training bulletin:

January to July 2015: [Updated: The

Beginners Workshop for 14 May is fully

booked.] Details of courses, seminars and

workshops to help you understand UK

strategic export controls.

Source:

http://www.GOV.uk

20 new banks in next five years

[16 March 2015, Mortgage Finance Gazette]

Posted on 13 March, by Joanne Atkin: Over the

next five years, there are likely to be five or six

new banks each year, some new entrants might

merge, and the introduction of ring-fenced banks

will result in a different landscape to retail

banking by 2020.

This was the conclusion of a speech given at the

Mortgage Finance Gazette Conference on 11

March, by Martin Stewart, director of banks,

building societies and credit unions at the

Prudential Regulation Authority and Bank of

England.

He anticipates that a number of non-bank lenders

will apply for a banking licence but the PRA still

expects to see both bank and non-bank mortgage

lenders continuing to operate in the UK mortgage

market.

Read more:

http://www.mortgagefinancegazette.com/bankin

g/20-new-banks-next-five-years/

Markit France Business Outlook

[16 March 2015, Markit Economics] The latest

Markit Business Outlook Survey shows that

optimism in France‘s private sector economy to

the highest level for one year in February. A net

balance of +19 percent of companies anticipate

growth of activity during the coming 12 months.

This is up from +13 percent last autumn.

However, sentiment in France is weaker than the

eurozone and global averages (+38 percent and

+27 percent respectively).

Key points:

Firms report brighter outlook for activity, new

business and revenues

Strongest outlook for profits since June 2011

Slight increase in employment forecast

Read more at:

http://www.markiteconomics.com/Survey/PressR

elease.mvc/918603978b1a4bfda3d90bcf83723fb

7

Markit Germany Business Outlook

[16 March 2015, Markit Economics] Markit‘s

latest Business Outlook Survey signals an

improvement in optimism at German

manufacturing and service sector companies. The

data highlight positive expectations towards

business activity, revenues, new orders and

profits, and a record proportion of firms intend to

add to their payrolls. Companies furthermore

expect both input and output prices to increase

over the next 12 months.

Key points:

Survey data shows positive expectations for all

main measures of corporate health

Improving economic conditions and higher

exports likely to boost growth in coming year

Hiring intentions hit record high

Read more at:

http://www.markiteconomics.com/Survey/PressR

elease.mvc/a93dab0fc1764fc5bf8acb2f495579eb

Markit UK Business Outlook

[16 March 2015, Markit Economics] Markit‘s

Business Outlook Survey signals ongoing

optimism at UK private sector companies in

February. While levels of positive sentiment are

down across most key barometers of corporate

health, optimism remains strong in the context of

historical data and well above the global average.

Key points:

Strong sterling, potential interest rate rise,

Eurozone uncertainty and general election

dampen business confidence

Your Daily News 16 March 2015

22

Optimism eases across services,

manufacturing and construction sectors

Further strong rise in employment expected

Read more at:

http://www.markiteconomics.com/Survey/PressR

elease.mvc/4d1e122dc8a94333aaa427d859bf5c3

3

NI Business Calls For Corporation Tax Cut

[16 March 2015, Tax-News.com] Posted on 13

March. By Jason Gorringe, Tax-News.com,

London: Paul Henry, the Chairman of Chartered

Accountants Ulster Society, has said that a

corporation tax cut would be an important

catalyst for economic and social change in

Northern Ireland.

Speaking at the Society's annual dinner, Henry

said: "Many people felt that devolution of the

power to reduce corporation tax to the Stormont

Executive could never happen. We do, however,

now have a potential operation date of April 2017

for this new incentive. This is tremendously

significant as it allows our elected representatives

and potential investors into Northern Ireland to

plan ahead and realistically evaluate the benefits

of the incentive. Now that a timetable has been

set, we can all work to deliver the benefits."

Henry noted the conditions attached to the

devolution of corporation tax powers. Under last

December's Stormont Agreement, the Northern

Ireland Executive must implement welfare and

public sector reform, bring the budget under

control, and resolve outstanding issues relating

to Northern Ireland's past.

See more at:

http://tax-

news.com/news/NI_Business_Calls_For_Corporat

ion_Tax_Cut____67528.html

Iceland drops bid to become part of

European Union

[16 March 2015, The Independent] Posted on 13

March. By Loulla-Mae Eleftheriou-Smith: Iceland

has withdrawn its bid to become part of the

European Union, two years after its application

was paused when a centre-right coalition party

came into power.

―Iceland‘s interests are better served outside of

the European Union,‖ the country‘s foreign

minister, Gunnar Bragi Sveinsson [pictured]

wrote on his website, the Guardian reports.

Iceland first placed its bid to become part of the

EU in 2009 when the country was ruled by a left-

leaning government and its economic stability

had been crippled by the financial crisis.

But a continued sticking point between Iceland

and the EU was the Common Fisheries Policy,

Deutsche Welle reports. The Union‘s law currently

dictates which states can catch what kind of fish

and in what amount, while Iceland has long

claimed that its own system, which did not

comply with EU regulation, was better for

business and for preserving fish populations.

See more at:

http://www.independent.co.uk/news/world/europ

e/iceland-drops-bid-to-become-part-of-european-

union-10106502.html

Your Daily News 16 March 2015

23

Greek finance minister Yanis Varoufakis

sounds alarm over quantitative easing

[16 March 2015, CITY A.M.] Posted on 14 March.

By Jessica Morris: The European Central Bank

kicked off its bond-buying programme this week,

as investors cheered the move, however Greece's

Finance Minister Yanis Varoufakis warned over its

potential outcomes.

"QE is all around us and optimism is in the air,"

Varoufakis said in Italy. "At the risk to sound the

party pooper ... I find it hard to understand how

the broadening of the monetary base in our

fragmented and fragmenting monetary union will

transform itself into a substantial increase in

productive investments."

"The result of this is going to be an equity run

boost that will prove unsustainable."

Frankfurt unleashed its "biggest bazooka", or the

€1.1 trillion (£720bn) quantitative easing

programme this week. The ECB will buy around

€60bn worth of public and private bonds every

month up until September 2016.

It's hoped the package will ward off a bout of

prolonged deflation, and boost economic growth

in the ailing region.

See more at:

http://www.cityam.com/211575/greece-finance-

minister-says-qe-will-fuel-unsustainable-equity-

rally

UKTI Business Opportunities 16/03/2015

[16 March 2015, UKTI] Posting of business

opportunities from UK Trade & Investment.

Business Opportunities

Cyprus - Preparation for the implementation of

the acquis - IPA: Technical assistance required

to help prepare the Turkish Cypriot community

for the implementation of the EU acquis

Cyprus - Social and economic development

and infrastructure - IPA: Technical assistance,

supplies and works required for economic

development project in Turkish Cyprus

Source:

http://www.businessopportunities.ukti.gov.uk

Italy Has EU's Highest Tax Compliance Cost

[16 March 2015, Tax-News.com] Posted on 13

March. By Ulrika Lomas, Tax-News.com,

Brussels: A medium-sized Italian company

spends on average EUR7,559 (USD8,010) every

year to complete administrative requirements

under the country's bureaucratic tax code,

according to data provided by the ImpresaLavoro

research center.

ImpresaLavoro calls the cost suffered in

maintaining tax compliance "an amount that is

without equal in the rest of Europe, and

represents a real additional hidden tax that

Italian companies are forced to bear."

The World Bank, in its report on Doing Business,

has noted that Italian businesses have to put in

269 hours to prepare and compile the necessary

documents and returns regarding employees'

taxes, value-added tax, and taxes on business

profits. Meanwhile, Eurostat has estimated that

the cost of that time is EUR28.1 per hour.

ImpresaLavoro therefore has declared Italy the

winner in the "non-prestigious" classification of

having the EU's most burdensome tax regime,

beating Germany, in second place, by EUR736

(218 tax-compliance hours at a cost of EUR31.1

per hour, or EUR3 more).

Even though France has a tax code as complex as

Italy's, it takes a French company only 137 hours

to comply with their taxes each year, at a total

cost of EUR4,699. That cost in the United

Kingdom was found to be EUR2,299.

See more at:

http://tax-

news.com/news/Italy_Has_EUs_Highest_Tax_Co

mpliance_Cost____67526.html

UK: Abolishing IR35 would cost £550m per

year, HMRC claims

[16 March 2015, AccountancyAGE] Posted on 13

March, by Calum Fuller: Abolishing the IR35

regime would prove far more costly to the public

purse than continuing to operate it, HM Revenue

& Customs claims.

According to figures released this week,

continuing to operate IR35 will incur

administrative costs of £16m, while repealing it

would hit the Exchequer to the tune of £550m

per year.

The legislation, designed to prevent people from

lowering their tax bill by not being directly

Your Daily News 16 March 2015

24

employed, has been the source of various

controversies in recent years.

There was public and political anger in 2012 after

it was revealed 2,000 senior office holders of

public bodies were revealed to be receiving

payment off-payroll, while the BBC revealed later

in the year that 148 of its 467 presenters were

engaged in the same fashion.

The numbers were reached based on figures from

2010/11, when around 6,000 operated through a

service company and were applying IR35.

Read more:

http://www.accountancyage.com/aa/news/23995

55/abolishing-ir35-would-cost-gbp550m-per-

year-hmrc-claims

FCA sets out final guidance on social media

[16 March 2015, New Model Adviser] Posted 13

March: By Michelle Abrego: The Financial

Conduct Authority (FCA) has finalised its

guidance on social media promotions, asking

firms to approve and record all digital media

communications.

In August 2014, the FCA set out its proposed

supervisory stance of financial promotions in

social media after it said it had noticed an

increase in firms‘ use of digital media for

customer communications.

The FCA reiterated that firms need to make sure

advertisements on social media platforms need

be considered individually, with stand-alone

compliance and that all promotions should be

‗fair, clear and not misleading‘.

In its finalised guidance, the FCA said its existing

requirements on approval and recordkeeping of

every financial promotion extended to social

media.

To see the guidance, click here.

Read more:

http://citywire.co.uk/new-model-

adviser/news/fca-sets-out-final-guidance-on-

social-media/a803442

UK: Lending rules push owners to equity

release

[16 March 2015, CITY A.M.] By Chris

Papadopoullos: Stricter mortgage rules could be

creating difficulties for homeowners looking to

remortgage later in life, leading to a boom in

equity release.

Equity release usually involves either a lifetime

mortgage – a mortgage that does not need to be

repaid until the borrower dies – or selling a share

in your home in a deal that still allows you to

spend the rest of your life there.

The number of new equity release customers

aged between 55 and 64 jumped by 32 per cent

in the second half of 2014, according to figures

released today by the Equity Release Council

(ERC).

The bump in homeowners looking to equity

release follows the implementation of the

Mortgage Market Review (MMR) in April, which

put stricter rules on mortgage lending. Prior to

MMR implementation, the proportion of

customers aged 55-64 had been in decline.

Read more:

http://www.cityam.com/211624/lending-rules-

push-owners-equity-release

UK: New tax avoidance offence expected in

Budget

[16 March 2015, ICAEW Economia] Posted 12

March: Accountancy firms predict that a new

offence of aiding and abetting tax evasion and

aggressive tax avoidance will be announced in

next week‘s Budget

It is expected that George Osborne will outline

proposals to introduce special measures, aimed

at professional service firms, to deter serial

avoiders and scheme promoters.

The controversial proposals, including stiff

penalties to tackle offshore evasion, had been

quietly dropped until recent events forced HMRC

to put them back on the agenda, according to

BDO.

―Criminal sanctions for tax evasion already exist

but only for those who intended to defraud the

exchequer and there is a high burden of proof in

a criminal trial. However, under the new

proposals, HMRC will only need to demonstrate

that a person failed to declare correctly their

offshore income and gains and, therefore, intent

becomes irrelevant,‖ said Dawn Register, partner,

tax dispute resolution, BDO.

Your Daily News 16 March 2015

25

See more at:

http://economia.icaew.com/news/march-

2015/new-tax-avoidance-offence-expected-in-

budget

UK: 'Radical' business rates review launched

[16 March 2015, BBC News] A "radical" review of

the business rates system in England has been

launched, with its findings due in time for the

Budget in 2016.

The review "paves the way for changes" to the

current system, which has been in place since

1988, the Treasury said.

However, the outcome is expected to be fiscally

neutral, meaning that the total sum collected

from businesses will not change.

The review was first announced in December's

Autumn Statement.

"The time has come for a radical review of this

important tax. We want to ensure the business

rates system is fair, efficient and effective," said

Danny Alexander, chief secretary to the Treasury.

The Treasury said the review will look at how

firms use property, what the UK could learn from

other countries and how the system could be

modernised to better reflect changes in property

values.

Read more:

http://www.bbc.co.uk/news/business-31897113

UK Budget 2015: No gimmicks, pledges

George Osborne

[16 March 2015, BBC News] Posted 15 March:

Chancellor George Osborne has promised "no

giveaways, no gimmicks" in this week's Budget -

but said he would further relax pension rules.

He is set to allow up to five million existing

pensioners to swap their fixed annual payments

for cash.

Mr Osborne told the BBC his last Budget before

the election would be one for a "truly national

recovery".

Labour's Ed Balls said the Tories were committed

to an "ideological plan" for the biggest cuts since

World War Two.

The chancellor and shadow chancellor both

appeared on the BBC's Andrew Marr Show days

before the Budget, the last one before all the

parties go to the polls on 7 May.

In what is seen as an attempt to woo older

voters, the chancellor is expected to extend

pension changes from April 2016, to allow

existing pensioners to swap their annuity for a

fixed lump sum.

It follows reforms announced last year that allow

working people to cash in all or part of their

defined contribution pension when they retire,

rather than buy an annuity that guarantees an

income for life.

Read more:

http://www.bbc.co.uk/news/uk-31892518

New Report reveals 100 EU regulations that

cost Britain £33bn

[16 March 2015, CITY A.M.] By Guy Bentley: 100

of the EU's most draconian regulations are

costing Britain over £33bn a year, according new

analysis from the think-tank Open Europe.

Adding insult to injury, the report reveals that the

accompanying impact assessment found the

costs of a quarter of these regulations

outweighed the estimated benefits but were

signed off by the British government all the

same. These included the Temporary Agency

Workers Directive and the Energy Performance of

Buildings Directive.

Your Daily News 16 March 2015

26

The total cost of these rules is so large that they

exceed the Treasury's expectations for all the

revenue to be raised in Council Tax for the 2014-

15 financial year. However, despite this gloomy

picture, moving to one alternative to Britain's EU

membership - the Norway option - would result in

93 of these regulations remaining in place.

Read more:

http://www.cityam.com/211588/open-europe-

reveals-100-eu-regulations-cost-britain-33bn

Crimea‟s grim anniversary

[16 March 2015, European Voice] As the Russia-

Ukraine crisis enters its second year, EU leaders

must turn their attention to the sanctions regime

and increasing pressure on Russia‘s energy

interests, writes Andrew Gardner:

The first anniversary of Russia‘s annexation of

Ukraine‘s Crimean peninsula falls on Wednesday

(18 March). In Russia, the anniversary will be

hard to miss: large celebrations are planned. The

European Union will mark the moment in glum

ways, both explicitly – EU foreign ministers will

put out a critical statement when they meet

today (16 March) – and, more generally, by

dedicating much of a meeting of EU leaders (19-

20 March) to issues related to Russia.

The EU has punished Russia for grabbing Crimea

from Ukraine, by imposing comprehensive

sanctions. One thing is certain in this anniversary

week: there will be no softening of the EU‘s

position on Crimea. ―There is no division on that;

that has always been very clear,‖ said one

diplomat last week.

There is no such unity in the EU‘s debate about

economic sanctions against Russia, which

currently turns on the question of extending

existing sanctions until the end of the year. When

EU leaders last met, on 12 February, France and

Germany had hours earlier brokered a peace

process in Minsk that is supposed to culminate, at

the end of the year, with Ukraine regaining

control of its eastern borders from separatists

and Russian forces.

It therefore seems logical in many national

capitals to extend the EU‘s sanctions on Russia,

which expire in July, until the end of the year.

That way, they reason, EU sanctions will reinforce

the Minsk process. However, some EU states – a

small group led by the Greeks, Cypriots, and

Austrians – argue that sanctions should not be

extended now at a point when there are signs of

a de-escalation in fighting.

Bridging those differences will be the big battle of

Thursday night, when EU leaders discuss the

Ukraine crisis.

Read more:

http://www.europeanvoice.com/article/crimeas-

grim-anniversary/

UK: Farage sets out price of deal with

Cameron after election

[16 March 2015, CITY A.M.] By Charlotte Henry:

NIGEL Farage is prepared to do a deal with the

Democratic Unionist Party (DUP) in Northern

Ireland to support David Cameron, but only in

return for a referendum on Britain‘s EU

membership in 2015.

Writing in his new book ―The Purple Revolution‖,

published tomorrow, the Ukip leader rules out a

formal coalition with the Tories. However, he

says: ―I see a Tory, Ukip, DUP three-way deal as

a possible scenario.‖

Farage believes that the DUP has moved on from

sectarianism and shares Ukip‘s euroscepticism.

Consequently the two parties ―have developed a

mutual respect for each other‖, he says.

Conservative chief whip Michael Gove is another

person that Farage believes he could do a deal

with. This prompted Labour‘s Ed Balls to

comment that a deal between Ukip and the

Conservatives ―is probably happening in [Gove‘s]

kitchen.‖

In a television interview yesterday, chancellor

George Osborne said the idea of deal with Ukip

was ―total nonsense‖, but declined to

categorically rule out the possibility.

Responding, Douglas Alexander, chair of Labour‘s

general election campaign, commented: ―Nigel

Farage wants a Tory government. Ukip is ready

to prop up a Tory government and support their

plan to take spending levels back to the 1930s

when we didn‘t have a health service.‖

Read more:

Your Daily News 16 March 2015

27

http://www.cityam.com/211637/farage-sets-out-

price-deal-cameron-after-election

UK: Government confirms annuity sale plans

[16 March 2015, New Model Adviser] By Jun

Merrett: The government has confirmed it will

allow savers to sell their annuities as part of this

week‘s 2015 Budget.

From April 2016, the government will remove the

restrictions on buying and selling existing

annuities to allow savers to sell the income they

receive from their annuity without unwinding the

original annuity contract.

Currently people wanting to sell their annuity

income to a willing buyer face a 55% tax charge,

or up to 70% in some cases. The government is

set to remove this charge so people will only be

taxed at their marginal rate.

The government said that savers would then

have the freedom to use that capital as they

want, thereby extending its 2014 Budget pension

freedoms to around 5 million people who have

already bought an annuity.

This means they can either take it as a lump sum

or place it into drawdown to use the proceeds

more gradually.

The government will launch a consultation on the

matter later this week.

Read more:

http://citywire.co.uk/new-model-

adviser/news/gov-t-confirms-annuity-sale-

plans/a803855

UK: Business group slams Labour plan for

enforced profit sharing

[16 March 2015, CITY A.M.] By Lynsey Barber:

POTENTIAL Labour party plans to force

companies to share profits with staff have been

slammed by the Institute of Directors as

―counterproductive‖ and a deterrent to

investment.

The policy to force firms with over 50 employees

to set up profit-sharing schemes in the style of

John Lewis is reportedly being considered by Ed

Miliband in a bid to level out economic growth.

Read more:

http://www.cityam.com/211635/business-group-

slams-labour-plan-enforced-profit-sharing

UK: Bankers to face new fitness test under

FCA rules

[16 March 2015, CITY A.M.] By Kasmira Jefford:

Financial services firms will be forced to vet

thousands of staff each year and make sure they

are ―fit and proper‖ to perform their roles under a

new framework being finalised by City regulators.

The Financial Conduct Authority (FCA) and the

Prudential Regulation Authority (PRA) will today

publish the final proposals for a new regime that

will seek to make banks and other lenders take

greater responsibility for the propriety of their

staff rather than the regulators. Sky News first

reported the story.

The new regime represents the City‘s attempt to

impose tough professional standards and repair

the industry‘s tattered reputation following a

series of scandals including Libor rigging, the

Payment Protection Insurance mis-selling and

most recently the HSBC tax allegations.

Read more:

http://www.cityam.com/211634/bankers-face-

new-fitness-test-under-fca-rules

London could see revolutionary skyscrapers

that cast no shadow

[16 March 2015, CITY A.M.] By Lynsey Barber:

London‘s skyline is about to change dramatically

as the only way to build is upwards.

Hundreds of skyscrapers are being planned for

the capital over the next decade and some fear

that could cast a large shadow over the city.

Your Daily News 16 March 2015

28

Now architects have come up with an innovative

new building design however, which can regulate

the amount of light around a tower, meaning

Londoners will be able to bask in the glorious

sunshine rather than being caught in the chilly

shadows cast by the ever-taller towers of the

capital.

Read more:

http://www.cityam.com/211633/london-could-

see-revolutionary-skyscrapers-cast-no-shadow

Slowdown at top and bottom of market hits

London house prices

[16 March 2015, CITY A.M.] By Chris

Papadopoullos: London‘s property prices fell from

February to March, figures released today show.

New seller asking prices dropped by 0.4 per cent

according to online property market Rightmove.

It is the first time in three years that prices have

retreated in March.

High-end property values saw their asking prices

trimmed by 2.6 per cent. Demand for high-end

properties has been hit by stamp duty changes

and Labour‘s proposed mansion tax. First-time

buyer property prices slipped by 0.2 per cent.

Tighter lending criteria and high prices are acting

as a barrier to first-time buyers, Rightmove said.

Read more:

http://www.cityam.com/211623/slowdown-top-

and-bottom-market-hits-london-house-prices

UK: Pension freedoms: 'Don't book a cruise

yet'

[16 March 2015, BBC News] By Kevin Peachey,

Personal finance reporter, posted 13 March:

People planning to cash in their pension savings

under new rules taking effect in April have been

warned "not to book the cruise now".

It will take time and paperwork to withdraw

pension savings as cash, warns Michelle

Cracknell, chief executive of the Pensions

Advisory Service (TPAS).

New regulations that make it easier to access a

pension pot take effect on 6 April. But this does

not mean savers will be offered instant cash

withdrawals.

The new rules mark the biggest overhaul of

pension regulations for many years.

Running out of cash

The changes allow people aged 55 and over to

cash in all or part of their defined contribution

pension if they wish, rather than buy an annuity

that guarantees an income for life.

Read more:

http://www.bbc.co.uk/news/business-31867788

UK: Budget 2015: Police warning over leak

risk

[16 March 2015, BBC News] By James Landale,

Deputy political editor: Posted 13 March: The top

civil servant at the Treasury has warned staff he

will not "hesitate to call in the police" if anyone

leaks details from the Budget.

Sir Nicholas Macpherson has sent an email to

officials reminding them he takes rules banning

any pre-briefing of next week's Budget "very

seriously".

He warned staff not to disclose details of changes

to individual tax rates or economic and fiscal

forecasts. Pre-briefing was banned after much of

the 2013 Budget came out by mistake.

The email, written in bold red type, reads: "It is

now less than a week till the Budget.

Read more:

http://www.bbc.co.uk/news/uk-politics-

31876623

Data protection: EC agrees on general

principles & "one stop shop" mechanism

[16 March 2015, Latvian Presidency of the

Council of the European Union] Posted on 13

March: The Council reached a partial general

approach on specific issues of the draft regulation

setting out a general EU framework for data

protection, on the understanding that nothing is

agreed until everything is agreed.

The partial general approach includes the

chapters and the recitals concerning the "one

stop shop" mechanism (chapters VI and VII) as

well as the chapter and the recitals relating to the

principles for protecting the personal data

(chapter II).

In October and December 2013 the Council

already expressed its support for the principle

that, in important transnational cases, the

regulation should establish a "one-stop-shop"

mechanism in order to arrive at a single

Your Daily News 16 March 2015

29

supervisory decision, which should be fast,

ensure consistent application, provide legal

certainty and reduce the administrative burden.

This is an important factor to enhance the cost-

efficiency of the data protection rules for

international business, and so to contribute to the

growth of the digital economy.

According to the text agreed, the one stop shop

mechanism should only play a role in important

cross-border cases and will provide for

cooperation and joint-decision making between

several data protection authorities concerned.

The text clarifies that the jointly agreed decision

will be adopted by the data protection authority

best placed to deliver the most effective

protection from the perspective of the data

subject.

Read more:

https://eu2015.lv/news/media-releases/921-

data-protection-council-agrees-on-general-

principles-and-the-one-stop-shop-mechanism

Shops desert UK high streets at faster rate

in 2014

[16 March 2015, BBC News] The number of high

street shops fell sharply last year after many

more stores closed than opened, research

suggests.

The Local Data Company, which based its

analysis on the top 500 UK town centres, said a

net total of 987 high street shops disappeared in

2014, almost three times the 2013 total.

Overall, it said 5,839 outlets closed last year,

equivalent to 16 a day. Clothes and shoe shops

suffered the biggest declines, it said.

It found service shops such as opticians and

travel agents also saw net falls in shop numbers,

but leisure stores, such as food and drinks

outlets, continued to thrive. Coffee shops,

tobacconists and charity shops were among those

opening the most branches last year, it said.

The biggest losers by category were mobile

phone shops, which saw their numbers drop by

419, with their decline accelerated by Phones

4U's collapse into administration.

Read more:

http://www.bbc.co.uk/news/business-31899346

European backing for new Papworth

hospitals

[16 March 2015, European Investment Bank]

Posted on 13 March: The European Investment

Bank (EIB) has agreed to provide GBP 46 million

for the new 310 bed Papworth Hospital to be

constructed on the Cambridge Biomedical

Campus next to Addenbrooke's Hospital.

The 31-year loan from Europe‘s long-term

lending institution for the new Papworth Hospital

is the third new hospital to be supported by the

EIB in UK this year following confirmation of

support for the new Royal Hospital for Sick

Children in Edinburgh and the Dumfries and

Galloway Royal Infirmary.

Read more:

http://www.eib.org/infocentre/press/releases/all/

2015/2015-055-european-backing-for-new-

papworth-hospitals.htm

Pound at five-year low after Carney's

comment, disappointing construction data

[16 March 2015, CITY A.M.] Posted 13 March. By

Jessica Morris: The pound slumped to its lowest

level in five years against the dollar, after poor

construction data, and Bank of England governor

Mark Carney's rate comments.

Your Daily News 16 March 2015

30

Construction suffered its worst fall in more than a

year in January, when it contracted 2.6 per cent,

way below economists' expectations. However,

this conflicted with other industry surveys, which

suggest that the construction sector had a much

better start to the year.

Howard Archer, chief UK and European economist

at IHS Global Insight, said: "There is a very real

risk that construction output will contract in the

first quarter of 2015 and be a drag of [economic]

growth."

But it's good news for Carney, who yesterday

warned low inflation outside of the UK and a

strong pound could push back a rate hike.

Read more:

http://www.cityam.com/211565/sterling-falls-

five-year-low-amid-carneys-comment-

disappointing-construction-data

How Halifax wants to use your heartbeat as

a security device

[16 March 2015, CITY A.M.] Posted 13 March. By

Emma Haslett: Bank security just took a step into

the future, after the Halifax introduced a system

that uses your heartbeat to identify you.

Forget pin numbers and card readers - this

system uses a Nymi wristband, which can read

the rhythm of the wearer's heart. According to its

makers, everyone's heartbeat is different - which

makes it the perfect authentication device.

Not only does the wristband sense the wearer's

heartbeat, it can work out where they are - if

they're anywhere near a device which allows

them to access their account, it will unlock it.

Read more:

http://www.cityam.com/211562/how-halifax-

wants-use-your-heartbeat-security-device

HSBC: French prosecutor requests criminal

trial over tax dodging allegations [16 March 2015, CITY A.M.] Posted 13 March. By

Joe Hall: A French prosecutor has requested

HSBC‘s Swiss private bank be sent to a criminal

trial to face charges over a suspected tax

avoidance scheme.

HSBC had been the subject of an investigation

from French magistrates into alleged tax fraud

involving 3,000 French taxpayers, which ended

last month.

The under-fire bank now has a month to respond

after which French magistrates will take the final

decision on whether to hold a criminal trial.

Today HSBC told the Guardian: ―This is a normal

step in the judicial procedure and the outcome of

the matter is not determined as of today.‖

Read more:

http://www.cityam.com/211560/hsbc-french-

prosecutor-requests-criminal-trial-over-tax-

dodging-allegations

UK: Alternative lending deals rocket 43 per

cent amid M&A flurry

[16 March 2015, CITY A.M.] Posted 14 March. By

Jessica Morris: Non-bank lending jumped last

year, with 195 deals in the UK and Europe, up 43

per cent from a year earlier.

Mergers and acquisitions activity drove around 51

per cent of the deals, overtaking refinancing,

when considering deals since the tracker began

at end of 2012.

"With increased confidence in the markets and

wider funding options, we are seeing a pick-up in

mergers and acquisitions activity," Fenton Burgin,

head of UK debt advisory at Deloitte, said.

Alternative finance offers businesses a range of

borrowing options which are outside of a

traditional bank loans. The sector has swelled in

recent years, as banks struggled to lend after the

financial crisis, and alternative sources of finance

sprung up to plug the gap.

The deal tracker also found that 62 per cent of

deals were conducted in mainland Europe in

2014, compared to 38% of deals completed in

the UK.

Your Daily News 16 March 2015

31

―There is increasing activity in France, Germany

and Southern Europe. However, mainland Europe

may not embrace direct lenders with the same

lightning speed as the UK due to the larger share

of family or founder owned businesses, who are

intrinsically more risk averse than private

equity.‖ Floris Hovingh, head of alternative lender

coverage at Deloitte, said.

The UK dominates the alternative finance

industry, recently increasing its market share to

77 per cent, according to an earlier report

published by Cambridge University and Ernst &

Young.

Read more:

http://www.cityam.com/211569/alternative-

finance-deals-jump-43-cent-amid-flurry-mergers-

and-acquisitions

The British invasion of Silicon Valley

[16 March 2015, Telegraph] Posted 14 March. By

Rebecca Burn-Callander, Enterprise Editor:

Ambitious British start-ups find that California is

the only place to build billion-dollar businesses

Going by the billion-dollar success stories of

companies such as Uber, Airbnb and Snapchat,

the streets of Silicon Valley appear to be paved

with gold. With new companies in the Bay area

attracting dizzying valuations – Angel List quotes

the average pre-investment valuation at $4.8m –

it‘s little surprise British start-ups want a slice of

the action.

The British Consulate in Silicon Valley says it

fields enquiries from more than 300 companies a

year looking to make the move, and the number

is expected to rise as initiatives such as the

Silicon Valley Internship Programme give Britons

the opportunity to rub shoulders with start-up

giants.

Is Silicon Valley the place to build a technology

start-up? Should entrepreneurs up sticks and

cross the Atlantic? In this article, the Telegraph

reports on three British entrepreneurs who

moved to California to seek their fortunes.

Read the full article:

http://www.telegraph.co.uk/finance/businessclub

/11471516/The-British-invasion-of-Silicon-

Valley.html

Investment banking more popular career

than at any time in the last three years

[16 March 2015, CITY A.M.] Posted 13 March. By

Guy Bentley: Investment banking has become

one of the most attractive careers for Londoners

and surged to its most popular level in three

years.

Global recruiter Randstad polled over 10,000

workers to discover how attractive different

industries are to the UK's workforce.

In London, investment banking is now the third

most popular sector following electronic

engineering and automotive aerospace. More

than a third of respondents said they thought

investment banking was an attractive career.

The capital was, however, the only region where

investment banking featured in the top three

most attractive sectors. Investment banking

ranks ninth in the UK as whole in terms of career

attractiveness. The automotive industry topped

the list for the fourth year in a row.

Read more:

http://www.cityam.com/211556/investment-

banking-more-popular-any-time-last-three-years

Your Daily News 16 March 2015

32

UK: Businesses face a tax cliff - Chancellor

must give them a Budget break

[16 March 2015, Daily Mail] Posted 14 March. By

Simon Watkins for The Daily Mail: British

businesses are facing a tax cliff next year, but

this week the Chancellor in his Budget has an

opportunity to save them from going over the

edge.

Last year, George Osborne increased the amount

that companies could invest and claim tax relief

to £500,000. The move was targeted to

encourage firms to spend on new equipment and

machinery, investment that should help improve

the productivity of British firms, boost

employment and ensure that the recovery built

on solid foundations.

The step was temporary and the tax relief will

drop back to its previous level of just £25,000 on

January 1, 2016. The CBI, the British Chambers

of Commerce and others who are calling for it to

be extended are quite right and the Chancellor

should use the last Budget of this Parliament to

do just that.

Tax reliefs for business are bound to rankle in

some quarters, but the aim of tax policy should

be to encourage behaviour that benefits the

wider economy – and society – and this measure

fits the bill. The economic recovery of the last

two years is far from perfect.

Productivity in Britain remains moribund and

investment in plant and machinery is one very

straightforward way to help lift that productivity.

Read more:

http://www.thisismoney.co.uk/money/comment/

article-2994900/SIMON-WATKINS-British-

businesses-face-tax-cliff-year-Chanellor-Budget-

break.html

Britain on the brink of a food crisis caused

by a shortage of lorry drivers

[16 March 2015, Daily Mail] Posted 14 March. By

Matt Chorley, Political Editor For Mail Online:

Shoppers could be faced with empty shelves

without urgent action to recruit an army of lorry

drivers, it was warned on Saturday.

Chancellor George Osborne is under pressure to

announce support for training in the haulage

industry in the Budget this week, amid warnings

of shortage of 45,000 drivers.

The crisis in in the industry could mean food

shortages at peak times, including this Easter

and the summer months.

New training rules mean the logistics industry is

thousands of drivers short, according to the UK

Commission for Employment and Skills.

The Freight Transport Association claims more

than 20,000 drivers have quit since September.

It comes after a new Driver Certificate of

Professional Competence was introduced across

the EU, which meant drivers had to complete an

extra 35 hours training, costing some £500.

Read more:

http://www.dailymail.co.uk/news/article-

2994731/Britain-brink-food-crisis-caused-

shortage-lorry-drivers-lead-shelves-summer.html

UK: Half a million more people claiming

housing benefit under coalition

[16 March 2015, The Guardian] Posted 14 March.

By Daniel Boffey, policy editor: Britain‘s failure to

build affordable homes has led to a soaring

housing-benefit bill – with half a million more

people now relying on state handouts to pay their

rent than when the coalition came to power, a

damning new analysis reveals.

The coalition‘s crackdown on welfare has failed to

prevent an explosion in the number of people

relying on state help in recent years, with a total

of five million people now claiming housing

benefits. And with 1.8 million on waiting lists for

social housing, hundreds of thousands more

have, instead of escaping welfare dependency,

fallen into the hands of private landlords charging

increasingly exorbitant rents.

Spending on housing benefit has risen by £650m

a year on average since 2009-10, and at a faster

rate than during Labour‘s 13 years in power, a

new analysis of official Department for Work and

Pensions figures finds. The annual housing

benefit bill is expected to hit £25bn by 2017.

A major cause of the ballooning bill, according to

experts, is the dearth of affordable housing. The

number of affordable homes built in 2013-14 was

the lowest in a decade – despite the UK‘s

population rising by five million over the past 12

Your Daily News 16 March 2015

33

years, a rate of growth unequalled anywhere in

Europe.

As demand has grown, private landlords have

hugely increased rents. Commuter areas outside

London such as Surrey Heath and Elmbridge saw

rises of 14% last year.

The huge increase in housing-benefit claimants

has been despite the new coalition government‘s

announcement of a war on the ―out of control‖

benefit budget in 2010. Proposals included the

benefit cap, introduced in April 2011 for new

claimants, which saw the maximum amount a

claimant could receive limited to £500 a week for

families with children and £350 for individuals.

Read more:

http://www.theguardian.com/society/2015/mar/

14/housing-benefit-coalition-people-claiming

GERMANY: Europe‟s industrial heart moves

east

[16 March 2015, Business-Standard] By Paul

Taylor: BRUSSELS (Reuters) on 15 March: Once

depicted as a "Blue Banana" stretching from

Manchester to Milan, Europe's industrial

heartland has moved eastwards just as its

political centre of gravity has shifted to Germany.

The term was coined in 1989 - the year the Berlin

Wall fell - to describe French geographer Roger

Brunet's work identifying a manufacturing

megacity, visible from space at night as a band of

light curving from England to Italy via the

Netherlands, Belgium, West Germany and

Switzerland. Brunet was worried that France, a

highly centralised economy dominated by Paris,

was falling off the map.

He developed the concept to urge the

government to invest in infrastructure to connect

the Paris-Lyon-Marseille axis to the highly

urbanised European backbone of around 110

million people.

A quarter of a century later, the continent's

industrial geography has morphed. A more fitting

image might be a golden football centred on

southern Germany and reaching into Poland,

Hungary, the Czech Republic, Slovakia, Austria

and Romania.

Read more:

http://www.business-

standard.com/article/reuters/no-more-blue-

banana-europe-s-industrial-heart-moves-east-

115031500354_1.html

UK: A Labour government should create

'procurement minister' role - task force

[16 March 2015, Supply Management] By Will

Green: A future Labour government should

appoint a cabinet minister with responsibility for

purchasing and ensure there is at least one buyer

for every £1 million of central government spend,

according to a report from the party‘s task force

on public procurement.

The report recommends a ―professionally

resourced procurement and contract

management function within the civil service‖

should be established, and that a ―Labour

government‘s approach to public procurement

needs to be strategic rather than ad hoc, taking

full advantage of the freedoms allowed under EU

law to align government contracting with

Labour‘s wider political goals and underlying

values‖.

The report, which was produced by a task force

involving the Labour Finance and Industry Group

and Society of Labour Lawyers, said its

recommendations should be stated as policy

―from day one of a new Labour government‖, but

an independent review should be completed

within three months to ―consult with affected

stakeholders on their detailed implementation‖.

See more at:

http://www.supplymanagement.com/news/2015/

labour-government-should-create-procurement-

minister-role-task-force