Slowing down: China’s manufacturing index falls, data reveals

An employee works above a furnace containing molten steel at a factory of Dongbei Special Steel Group Co. Ltd. in Dalian, Liaoning province January 30, 2014. PHOTO: REUTERS

BEIJING: 

China’s official gauge of its manufacturing sector slipped to a five-month low in January, the government announced Saturday, confirming a slowdown in factory activity in the world’s second largest economy.

The monthly purchasing managers’ index (PMI) declined to 50.5 in January after recording 51 in December and 51.4 in November, according to the government’s National Bureau of Statistics and the China Federation of Logistics and Purchasing.

Any figure above 50 indicates expansion of manufacturing activity while anything below that signals contraction.

All major components of the PMI index, from new orders to production, declined, indicating downward pressure on the economy, state news agency Xinhua reported.

“The decline could be largely due to the [spring] festival effect,” ANZ bank said in a note, referring to the annual Chinese lunar New Year holiday when millions of migrant workers put down their tools and return to home.

The Year of the Horse began on Friday, but the widespread closure of factories and workshops started several days earlier.

HSBC bank announced, on Thursday, that China’s manufacturing sector shrank in January for the first time in six months, with the PMI index recording 49.5, placing it in contraction territory.

Qu Hongbin, HSBC bank’s economist in Hong Kong, described it as a soft start to China’s manufacturing sectors in 2014, partly due to weaker new export orders and slower domestic business activities during January.

China recorded an annual GDP growth of 7.7% in 2013, the government said in mid-January, indicating it maintained its slowest expansion in more than a decade.

Rocket Internet aiming for new highs in Pakistan

Growing market for e-commerce creates attractive market for investors.

LAHORE: 

Internet along with even faster smartphone penetration is creating a huge demand for different online portals to meet the increasing demand for online shopping.

Many local companies have now successfully launched different online portals in the past few years, but the potential in Pakistan is big enough to attract foreign names that are now increasing their footprint in the online market.

Rocket Internet, a German based internet incubator, is also expanding its presence in Pakistan by offering different portals to online customers. The company started its operations in Pakistan two years ago by launching Daraz.pk, the first e-commerce shopping portal. Since then, the company has launched five more portals which include Foodpanda.pk, EasyTaxi,Kaymu.pk, Lamudi.pk and Carmudi.pk.

“With 30 million internet and 15 million smart phone users, we see Pakistan as a market with excellent adoption rate for e-commerce business”, Koen Thikssen, Rocket Internet Managing Director, told The Express Tribune in an interview. “The urge to adopt new online trends in Pakistan allows us to launch our products and it is being used by people, depicting the need for such platforms.”

Rocket Internet already has its presence in over 50 countries, providing online solutions with over 100 companies. The company closely monitors different online portals successfully working in developed countries. The company looks into different economies to find countries where such services are not available and introduces such models after involving and training local human resource.

In Pakistan, even though one may finds several online portals catering different needs, Thikssen believes that the online shopping concept is still developing in Pakistan and a boom in this sector is yet to arrive.

“If we see that any model successfully working in a developed country is not present in Pakistan then we will definitely go for it. We think that such gaps are huge opportunities not only for our company but also for Pakistan.”

Thikssen claims that the six portals of their company operating in Pakistan are of the same standards as a developed country. The standards and services available for such portals are same across the board, under the same name, so anyone travelling from Pakistan to any part of the world may browse the same portal to avail similar services anywhere.

The company’s management reaches individual investors for financing new ventures. The initial investments and daily operational costs for six companies working in Pakistan are being made by different investors.

The company’s revenue generation for all ventures, according to Thikssen, is more than €3 billion. The company has over 25,000 employees all over the globe. In Pakistan, the company employs more than 250 employees for the six ventures currently operating.

Oil imports: Govt to take higher credit ceiling plea to gulf states

At present, Pakistan imports petroleum products from Saudi Arabia on 30-day credit and from the UAE it buys oil on 60-day deferred payment. PHOTO: FILE

ISLAMABAD: 

Pakistan has decided to approach four Gulf Arab countries, including the world’s largest oil exporter Saudi Arabia, to seek an increase in the credit limit on oil imports in an effort to ease pressure on its weakening foreign currency reserves.

The Muslim countries that will be contacted are Saudi Arabia, the United Arab Emirates (UAE), Qatar and Kuwait, officials say.

The previous PPP-led coalition government had also tried to persuade Saudi Arabia to increase the oil import credit ceiling, but Riyadh gave Islamabad the cold shoulder.

In addition to the higher credit facility, the government is also planning to strike a state-to-state deal with the Gulf countries to reduce the cost of crude oil imports. Oil and its products’ import eats up roughly $15 billion a year.

In this connection, officials of the Ministry of Finance met representatives of oil marketing companies and refineries on Friday to discuss the measures aimed at curtailing the oil import bill and increasing the credit limit.

At present, Pakistan imports petroleum products from Saudi Arabia on 30-day credit and from the UAE it buys oil on 60-day deferred payment.

The country’s consumption of petroleum products stands at 22 million tons, of which about 13 million tons are imported. Apart from this, oil refineries import nine million tons of crude oil per annum to meet their processing needs.

Government officials believe that the import bill will swell further in the wake of closure of compressed natural gas (CNG) stations in Punjab and lack of gas supply for running power plants.

Demand for petrol from vehicle owners surges following shutdown of CNG outlets while absence of gas for power plants increases the need for furnace oil.

“In this scenario, we see pressure mounting on the already thin foreign exchange reserves of the country,” an official remarked.

Industry players say private companies in the oil sector have already made commercial arrangements with different oil suppliers. “And now, the government is planning to enter into relatively long-term oil import contracts with administrations of friendly Muslim countries,” the official said.

According to a statement issued here, Finance Minister Ishaq Dar held a meeting with representatives of Pakistan State Oil, Pakistan Refinery Limited and Pak Arab Refinery (Parco) at the finance ministry on Friday.

He discussed and reviewed their performance with specific reference to the source of oil imports as well as their consumption.

“It is important that we have comprehensive data of oil products and the source of imports for proper planning so that decisions can be made about them,” Dar said.

He pressed the oil marketing companies and refineries to brief the government on the present pattern of oil imports and its marketing and suggest measures for improvement.

The minister expressed satisfaction over the current availability of petroleum products in the country.

Ronaldo: I could play in France one day

The Real Madrid star says he has great affection for the country and has tipped Paris Saint-Germain to challenge for the Champions League

Cristiano Ronaldo has hinted he could be tempted to play in France in future should he chose to leave Real Madrid.

The Portugal star, who has enjoyed another excellent campaign with 22 goals in 20 La Liga games so far, was linked with a potential switch to Paris Saint-Germain prior to signing a new contract at Santiago Bernabeu last year.

Speaking on Sunday, the Blancos forward was open in discussing his footballing aspirations and, while he stressed he is keen to see out his five-year deal with the Spanish giants, he pointed to an interest in Ligue 1.

"Maybe one day I'll be in France to live and to play. Or maybe not," he told French football programmeTelefoot.

"France has always been welcoming to the Portuguese people. My mother worked there. It's a country that I really love. All I can say about French fans is that they continue to support me.

"I have a contract with Real until I am 33. I hope to stay here, I'm very happy."

Ronaldo believes PSG should be considered among the favourites to win the Champions League this season, with Laurent Blanc's side having cruised through the group stage to set up a tie with Bayer Leverkusen.

"PSG will be a contender to win the Champions League. It's a strong team and will be hard to beat. They will be one of the favourites to win this competition."

Ronaldo claimed his second Ballon d'Or of his career last month after his sensational form in 2013, and the 28-year-old admits the emotional ceremony will live long in his memory.

"Maybe people were surprised to see me cry [when I won]," he said.

"But those who know me know that this is the real Cristiano. Someone honest. This is the reality, this is not the image that I give myself. It was natural. Having my son at my side, it was an incredible moment. It was one of the most beautiful nights of my life.

"[Franck] Ribery, like Lionel Messi, deserved to win it too. They accomplished a lot of things. But it was my turn. People voted for me because I made a superb season.

"It will be hard to beat my own record [of 69 goals], but nothing is impossible. I will do my best, as always. I hope I will not have any injuries. I am prepared for this challenge. We'll see what happens."

Ronaldo and Madrid will be in action on Sunday as they travel to face Athletic Bilbao and will be hoping to overtake leaders Barcelona, who are a point ahead in the table.

Moving advertisement: Pakistan Railways puts up stations, trains for branding

Rafique said branding could take place on trains’ seat covers, internal walls of passenger coaches and even toilets. PHOTO: FILE

LAHORE: 

In a bid to address the ailing deficit, Pakistan Railways (PR) will allow advertisers to use its stations and trains for branding purposes, said minister Khawaja Saad Rafique.

Rafique said three trains, including Tezgam, Khyber Mail and Awaam Express would be offered for branding on their seat covers, internal walls of passenger coaches and even toilets as a pilot project.

“The deficit would decrease by the end of the fiscal year and we’ve started work on this,” Rafique told a team of journalists, adding that railway stations in Lahore, Islamabad and Karachi would also be included in the project.

The minister added that PR would be able to reduce its deficit despite an extra expenditure of Rs3 billion on paying pensions, salaries and increasing fuel prices.

He said the PR had earned Rs3.43 billion more than its earning in the previous corresponding period during the 200 days of the present government. All corrupt officers were sacked and were replaced, he added.

Meanwhile, Rafiq said that freight has been the most neglected sector and PR was doing everything it could to bring about an improvement in the area.

The minister said that the punctuality rate of trains had been raised up to 55 percent, acknowledging that there still existed room for improvement.

Rafique said a procedure had been developed to bar an officer from going abroad without permission of the technical committee, adding that several officers were asked to come back and face legal action.

He appreciated efforts at land retrieval and provision of security to trains. The minister said a request had been forwarded to the government for a raise in salaries of the PR police staff.

He also appealed to the court to take notice of one-sided stay orders by lower courts without hearing the stance of the PR.

The official added that the method to disburse pensions was being automated. Acting PR Chairperson Parveen Agha, General Manager Operation Anjum Pervaiz, IG Ibne Hussain, AGM Traffic Javaid Anwar, AGM Infrastructure M Khalid and AGM Mechanical Rana Abrar Anwar were also present.

The Saturdays to support Justin Bieber on tour

The Saturdays are in talks to support Justin Bieber on tour.
The 'What About Us' hitmakers are hoping joining forces with the 19-year-old singer will help them crack the US and are lining up meetings to discuss teaming up with Justin on his Believe tour, which has been extended with several more dates across the States this summer.
Mollie King told Capital FM: 'There are talks about it definitely. We're going to see how our schedules tie up really - we'll see.'
Rochelle Humes added: 'He's on tour right now and obviously we're really busy at the minute and in the next couple of weeks so hopefully if we can get out there and do some dates for him that would be good.'
The girls - who scored their first ever number one single in the UK on Sunday (24.03.13) - are big fans of the Canadian heartthrob and were lucky enough to meet him while they were in Los Angeles.
Una Healy excitedly said at the time: 'We met Justin Bieber, he was on a TV show with us and I remember I went in for the kiss on the cheek and he's got baby soft skin!'
Justin's tour hasn't gone as smoothly as planned so far, notably when he caused outrage by keeping his young fans waiting for nearly two hours at London's O2 arena earlier this month

Winter drives German unemployment above 3 million

In the month of January, some 3.1 million Germans were out of work, which was 263,000 more than in December, the latest figures released by the German Labor Agency (BA) on Thursday showed.

The unemployment rate in Europe's biggest economy climbed by about 0.6 percent to 7.3 percent in the month, the BA said in a statement.

Compared with the same month a year ago, the German unemployment figure was lower by about 2,000 people, it added.

The agency attributed the month-on-month rise to the winter break in some sectors of the economy, most notably in construction. It also noted, however, that if January unemployment was adjusted for seasonal variations the figure would show lower unemployment than usual for the season.

The seasonally-adjusted unemployment figure of 2.9 million people, marked a drop of 28,000 compared with December.