Arab corruption on the rise since 2011 uprisings - poll

Corruption has worsened in most Arab countries since their 2011 revolutions, even though anger with corrupt officials was a major reason for the uprisings, according to a public opinion poll released on Tuesday.

The survey by Transparency International, a global non-governmental body which studies bribery around the world, appears to dash hopes that the Arab Spring would produce cleaner government and business in the region.

The Arab public's continued frustration with corruption may undermine governments' efforts to restore political stability, while hindering economic growth and foreign investment.

Of four countries which experienced changes of government during the Arab Spring, a majority of respondents in three -Egypt, Tunisia and Yemen - feel the level of corruption has risen in the past two years, the survey showed.

In Egypt, 64 percent said corruption had worsened; in Tunisia, the proportion was 80 percent. The exception was Libya, where only 46 percent said the country had become more corrupt.

Within Egypt, 78 percent of respondents said the police were corrupt or extremely corrupt. The proportion was 65 percent for the judiciary and 45 percent for the military, one of the country's most respected institutions which ousted Islamist President Mohamed Mursi last week sparking a wave of protests.

The survey also showed growing public disenchantment in many other Arab countries which did not experience revolutions but where the Arab Spring has increased political tensions.

In Lebanon, 84 percent said corruption had worsened in the past two years, in Morocco 56 percent and in Iraq, 60 percent. The ratio in Jordan was 39 percent, while 44 percent said the level of bribery had stayed the same.

Christoph Wilcke, Middle East and North Africa director for Transparency International, said the police, judiciary and political parties in Arab countries needed to be reformed in order to gain the trust of the public.

In the social and economic turmoil that has followed the Arab Spring, however, governments have had little time or energy to push such reforms.

"There is a contradiction between policy and rhetoric," said Wilcke.

For example, in an attempt to attract foreign investment the Egyptian government reconciled itself with some members of the former regime of Hosni Mubarak who had been convicted of corruption, he added.

The survey was based on interviews with about 1,000 people in each country between last September and March this year.

Bank of Sharjah expects 25-30% growth in 2014

(Getty Images)

Bank of Sharjah expects net profit growth of around 25-30 percent in both 2013 and 2014, aided by an improved performance of the economy in the UAE, its chief executive said.

Lenders in the UAE have on the whole posted strong profit growth in the first nine months of this year, with Bank of Sharjah reporting a 20.4 percent year-on-year hike in net profit for the period.

The bank benefited this year from lower bad loan provisioning and the writing back of existing impairments, Varouj Nerguizian said, while higher loan growth would continue into next year as the UAE's economy was boosted by spending related to Dubai's hosting of global trade fair Expo 2020.

"When you fly on Concorde, before it takes off, you feel the afterburner when you take off - like somebody pushed it - and when it goes to cross the speed of sound, again the afterburner gives another push.

"That's exactly like 2020 as we were doing fine but it will give us a further boost," Nerguizian said late on Sunday on the sidelines of an event marking the bank's 40th anniversary. Dubai won the right to host the Expo late last month.

UAE banks were hit by a local real estate crash and debt problems at Dubai state-linked entities at the end of the last decade, forcing them to take big provisions. But they have benefited from a rebound in the property market in the last 12 months and growth in core industries such as tourism and trade.

Bank of Sharjah's loan growth in 2014 will be around 15-20 percent, Nerguizian said, with the potential for increased trade with Iran a factor that could drive lending growth in a big way, should economic sanctions on Tehran be eased.

"We expect the reduction of the tensions between the United States and the West and Iran to be extremely positive for the banking industry," Nerguizian said.

Dubai, across the Gulf from Iran and home to tens of thousands of ethnic Iranians, has long been a major commercial hub for the Iranian economy, re-exporting consumer goods from other countries to the Islamic republic.

However, bilateral trade between the emirate and Iran dropped 31 percent in 2012 and a further 12 percent in the first half of 2013 because of the sanctions, which made it legally dangerous for banks around the world to deal with Iranian institutions.

At the end of September, Bank of Sharjah had recorded 4.2 percent loan growth over the end of 2012, its third-quarter financial statement showed.

Nine officials, execs accused in Oman graft trials

Nine state officials and private sector executives have gone on trial in Omanon charges of taking or offering bribes, in a widening crackdown on corruption in the Gulf sultanate's oil industry and related sectors.

Corruption is a politically sensitive issue in Oman, which saw sporadic street protests against graft and unemployment in 2011 as political unrest gripped other Arab countries.

The charges, mostly involving infrastructure projects, were outlined in six trials that opened on Sunday. The nine accused all denied the charges when they appeared at the Court of First Instance in the capital Muscat.

Eight individuals, including former or serving state officials, face similar charges in four other trials that have opened in the past six weeks.

Sunday's hearings were postponed to Dec. 26 after defence lawyers sought time to review evidence presented by the prosecution.

Among Sunday's cases, Qasim al Shizawi, director-general of ports in the Ministry of Transport and Communications, is accused by state prosecutors of receiving a bribe from Faithi Alaaiddin and Rizq Mustafa, executives at Consolidated Contractors Co - Oman (CCC-Oman), to facilitate several projects.

Spokesmen for the ministry and CCC-Oman could not be reached for comment despite repeated attempts.

In a second case, prosecutors allege Alaaiddin of CCC-Oman paid a bribe to Adil al Kindi, former chief executive of Oman Oil Refinery Co, to facilitate CCC-Oman operations.

An official at Oman Oil Refineries and Petroleum Industries Co, which now owns Oman Oil Refinery's assets, told Reuters that current management had no details about the case.

In a third case, prosecutors allege an executive they named simply as Muthukumaraswamy of Larsen & Toubro Oman, an affiliate of Indian engineering firm Larsen & Toubro, paid a bribe to Mukhtar Al-Muraza, senior manager at Oman Gas Co.

Yousuf al Ojaili, chief executive of Oman Gas, told Reuters: "I have no comments at this point; the cases are in the court's hands." Attempts to contact a spokesman for Larsen & Toubro Oman were unsuccessful.

Oman is a significant oil producer, pumping around 950,000 barrels per day of crude, with oil and gas sector revenues providing the vast majority of government revenues.

The country is spending heavily to develop its energy and industrial infrastructure in an effort to create jobs for its citizens. On Monday, international oil giant BP signed 30-year deals to develop an Omani gas project with an estimated investment of $16 billion

RSA Insurance drops another 3% on credit rating fears

As investors play a wait and see game ahead of this week's US Federal Reserve meeting, leading shares have edged higher after four days of decline.

But RSA Insurance is an exception, losing 2.55p to 89.95p and heading the FTSE 100 fallers.

Since its profit warning on Friday - the third in a row - and the subsequent departure of its chief executive, investors have started to worry about the insurer's credit rating. The insurer - which has been hit by severe problems at its Irish business - is expected to hold meetings to try and avoid a downgrade from A which could put further pressure on the business. Meanwhile analysts have been unveiling their own downgrades, with Canaccord Genuity cutting its target price from 100p to 85p with a sell rating. Analyst Ben Cohen said:

We think RSA needs to improve its solvency positions by up to £1bn, to take its capital strength back to the levels in 2008/9, when solvency was simply not an issue. We see this being achieved by a combination of a lower dividend (a cut by a third), new reinsurance covers (to reduce volatility of earnings going forward and capital consumption of the back-book) and portfolio adjustment/disposals, the largest of which could include Canada, in our view. A rights issue is also a possibility, albeit only likely a necessity if other reserving issues arise in coming months.

We were surprised as to the lack of details in Friday's announcement, and think shareholder pressure will make management come back sooner than [its full year results announcement in] February.

Also heading lower is Aberdeen Asset Management, down 5.8p to 450.3p following a report that the market is worried about its purchase of Scottish Widows and the uncertainty of integrating the business.

Mining shares are weaker after an HSBC manufacturing index came in lower than expected, albeit still showing growth. Antofagasta has fallen 5p to 756p while Anglo American is 4.5p lower at £12.65, not helped by Societe Generale reducing its price target from £17.50 to £16 although the bank kept its buy rating following the miner's strategy day last week:

Overall, we found the presentation convincing, but we are mindful that the bulk of the savings will be back-ended towards 2015-16.

2014 will continue to see headwinds (copper grades, Sishen's high stripping ratios). Because of strong capex ($7.5bn in 2014 and $6.5bn in 2015 versus $6.4bn in 2013), net debt is likely to increase in the next two years. We are cutting our 2013-2015 earnings per share forecast given 1) the group's copper production target (50,000 tonne cut to our forecasts), 2) higher than expected costs at Minas Rio, and 3) Sishen's increasing costs and relatively subdued production profile. However, 1) We think Anglo's savings initiatives are credible and will gradually kick in; 2) we like its commodities mix (iron ore, platinum, diamonds), and 3) most of the headwinds are now well known/contained (Minas Rio essentially de-risked, Sishen and Los Bronces' copper grade issues well flagged) and 4) Anglo's valuation is attractive relative to peers.

Chief executive Mark Cutifani made it very clear that he would not reshuffle Anglo as radically as some in the market would have anticipated (exit or restructure Anglo Platinum? reduce South African exposure?) and unlock value for shareholders. Instead, we expect he will favour continuity and bring the assets to their full potential before taking any significant initiatives.

But temporary power supplier Aggreko - which was under pressure on Friday - has jumped 89p to £16.05 after saying it expected its 2013 performance to be slightly ahead of expectations.

Overall the FTSE 100 is currently 22.12 points higher at 6462.08, with uncertainty over whether the Fed will decided to turn off the money taps or not at this week's meeting, the last with Ben Bernanke as the central bank's chairman. Mike van Dulken, head of research at Accendo Markets, said:

Yet another leg lower. This time with China PMI Manufacturing and Japanese business outlook disappointing, and adding to the weight of existing Fed taper fears which, thanks to jobs data and political progress have helped usher the index lower ahead of the [Fed's] last meeting of the year and chairman Bernanke's last press conference.

Nonetheless, the sharp overnight rebound from just below 6400 and so close to the long-term trendline of rising lows means we may be closer - after a correction of 6.2% and 6-weeks - to the bottom and thus a reversal. Could it coincide with another taper delay and thinner pre-holiday volumes to help deliver the Santa Rally that markets have been yearning for?

Aggreko wins World Cup and Commonwealth Games power contracts

Shares in temporary power supplier are biggest riser in FTSE 100 a year on from two profit warnings in two months

Construction continues in Manaus, Brazil, ahead of the 2014 World Cup. Photograph: Adam Davy/PA

Aggreko has won contracts to supply power at next year's World Cup in Brazil and Commonwealth Games in Glasgow, following a challenging period for the British company.

Shares in the temporary power supplier rose 5.8%, making it the biggest FTSE 100 riser on Monday morning, as it revealed the major sporting event wins and updated the market on the full year.

Revenue will be roughly flat at £1.57bn, while pre-tax profit is expected to be "at least" £335m in the year to 31 December, lower than the £367m achieved in 2012 but slightly above analysts' expectations of £332m.

Aggreko will provide temporary power for broadcasting of all World Cup matches in each of the 12 host cities, as well as for the International Broadcast Centre in Rio de Janeiro. It will supply and operate more than 46 megawatts of generating capacity, 1,000 distribution panels and 200km of electric cables.

The major contract wins are a welcome boost for the company, which faced a weakened outlook at the end of last year when the end of its 2012 Olympics contract coincided with declining military work and doubts over contract extensions in Japan, prompting two profit warnings in two months.

John Lawson, an analyst at Investec, said Aggreko's latest statement should be seen as a "welcome update", with no nasty shocks.

"Investors should be able to sleep slightly easier tonight, with no profit warning and no bad debt write-down."

On a regional basis, the company said underlying full-year revenue – excluding the boost from the London Olympics a year earlier – was likely to be around 8% higher in its Europe, Middle East, and Africa business.

Underlying revenue is expected to grow by around 7% in the Americas and fall by around 12% in Asia Pacific, largely as a result of contracts finishing in Japan.

Net debt is expected to fall by around £200m to below £400m as it scaled back investment in 2013 to deal with the weaker outlook.

Other deals secured recently include a six-month 80-megawatts diesel contract in Panama, under which Aggreko will provide power as a licensed generator to the country's wholesale electricity market.

Lloyd's of London appoints first female chief executive in 325-year history

Inga Beale has previously said that having women at board level changes how companies are run.

Forty years after the first woman entered the Lloyd's of London dealing floor as a broker, the 325-year-old insurance market has named its first female boss.

The company is to be run by 30-year industry veteran Inga Beale from January. Currently the chief executive of Canopius, a Lloyd's managing agent thought to be the subject of a takeover bid, Beale will replace Richard Ward who surprised the industry by resigning in the summer.

"Lloyd's is already an international leader, but this unique market has an extraordinary opportunity to increase its footprint and to cement its position as the global hub for specialist insurance and reinsurance. I'm looking forward to working with the Lloyd's team and the wider market to deliver a strategy for profitable and sustainable growth alongside Lloyd's robust market oversight," said Beale.

The world's largest insurance market insures anything from footballers' legs to singers' voices – Bruce Springsteen once insured his for £3.5m – as well as providing cover against natural disasters such as storms and floods.

Based in an eye-catching building in London's Lime Street – designed by Richard Rogers with the lifts are on the outside – Lloyds is actually a group of about 80 competing insurance syndicates that traces its origins back to a 17th-century London coffee house where merchants insured ships.

Beale has held a number of senior roles in the insurance industryincluding at Zurich Insurance and at the insurance arm of General Electric.

In June, in an interview she gave as chief executive of Canopius, she said having women at board level would make a difference to the way companies were run and stressed the importance of having female role models.

"I think the business is run differently if you have women around the decision-making table and that's why it's good to have diversity, not just on the gender side. Different people approach things differently and provide alternative views – diverse boards help companies make better decisions, which affect the bottom line," said Beale.

"Until we get more women around the decision-making table women are unlikely to get enough encouragement to really aspire to reach senior positions in the industry."

Her appointment comes 40 years after the first female broker at Lloyd's. Liliana Archibald also became the first female Name – one of the individuals who back the market with their own money.

After her first day in the broking room at Lloyd's, Archibald passed the building on the way home and commented that "the roof was still on".

Beale's appointment also coincides with more attempts to help women break the glass ceiling with business secretary Vince Cable requiring FTSE 100 companies to have 25% female representation on their boards by 2015.

UK housebuilders counter Ed Miliband's land-hoarding claim

Britain's biggest four developers – Barratt, Berkeley, Persimmon and Taylor Wimpey – have a collective land holding of almost 300,000 plots. Photograph: Matt Cardy/Getty Images

Britain's housebuilders have launched a scathing counter attack againstEd Miliband's claim that they are hoarding land for profit.

The industry said plots are built on as soon as planning permission is secured, and argued that the 557% increase in profits among the nation's four biggest housebuilders this year comes from a very low base following the financial crisis.

Pete Redfern, chief executive of Taylor Wimpey, said: "The industry is only just returning to the point where it is meeting its cost of capital following the most prolonged downturn in housing history.

"The comparison used for profitability is against a point where many in the industry were loss making, so a percentage improvement is rather meaningless."

Britain's chronic housing shortage is expected to push up prices by as much as 8% next year according to the property website Rightmove, unless a flood of new properties are built.

The biggest four developers by turnover – Barratt, Berkeley, Persimmon and Taylor Wimpey – have a collective land holding of almost 300,000 plots.

Miliband is accusing housebuilders of holding on to land to push up values, and claims some "stick-in-the-mud councils" are blocking development.

Redfern strongly rejected the Labour leader's accusation that housebuilders are hoarding land.

"We continue to start all sites as soon as possible once an implementable planning permission is received. Taylor Wimpey specifically and the industry as a whole have only a tiny percentage of sites that have a planning permission, where construction has not been started."

A spokesman for the Home Builders' Federation (HBF), the industry's trade body, said: "Developers don't land bank, all the evidence is there. As soon as developers get a planning permission they want to start on site. Developers are not land hoarders."

One major housebuilder said companies in the sector would be perceived as hugely risky and lose investment if they did not have sufficiently long land bank holdings of typically more than four years.

The HBF said the industry would work with Michael Lyons, the chair of Labour's new independent commission on housing, to improve understanding of the issues.

"We are looking to work with the Lyons Commission to help them understand the complexity of housing delivery going forward."

Lyons said the country needed to build more than 200,000 homes a year by 2020 if demand was to be met and the backlog of under-supply addressed.

Shares in the sector were down on Monday morning, with Persimmon shares 1.7% lower, Barratt down 0.9% and Taylor Wimpey off 0.2%