Friday, January 26, 2007

Kuwait Islamic banking institutions urged to bolster ties with Japan

Kuwaiti Ambassador to Japan Ghassan Al-Zawawi yesterday spoke highly of Japan's strong interest in Islamic finance stems from various Japanese institutions, while urging Kuwaiti Islamic banking industry to build cooperative ties with Japanese players."I am not much impressed with the level of attendees from the Middle Eastern countries participating in Japan's first major seminar on Islamic finance, particularly Kuwait, a market leader in this industry," Al-Zawawi told Kuwait News Agency.Al-Zawawi made remarks after the two-day international forum, which drew about 300 delegates including policymakers, banking regulators, commercial bankers, investors, economists, researchers as well as Islamic banking practitioners from the Middle East and Asia."I was expecting to see better participation from Kuwaiti financial institutions to take this opportunities gaining leverage on the world's second largest economy," Kuwaiti ambassador emphasized the importance of realising that the Japanese side is keen to entering Islamic finance industry.Japan's first full-fledged seminar on Islamic finance is aimed at facilitating further understanding of the global Islamic banking industry among local financial community, according to the Islamic Financial Services Board (IFSB), co-organiser of the event.It is the first such seminar organised by the IFSB in G8 major countries-Japan, US, Britain, Canada, France, Germany, Italy and Russia. Japan will be the first state among G8 to issue Islamic bond known as Sukuk later this year. Established by Muslim nations, IFSB's membership includes Kuwait Finance House (KFH), Boubyan Bank and nine other Kuwaiti financial institutions.With half of the world's Muslim population living in the Asia-Pacific region, the Japanese Islamic banking market has the potential for long-term growth. Boasting the Asia's biggest bourse and foreign exchange trading centre, for Japan, this is an opportunity to attract funds from oil-producing countries, which have ballooned to some USD 2 trillion.Mohammed Saleem, Treasurer of Kuwait Investment Authority (KIA) told Kuna that he is attending the seminar in order to "give confidence" to Japanese financial institutions by sending a strong message that the Kuwaiti government is supporting this event, which Al-Zawawi took an initiative to realise. "KIA also wants to explore business opportunities here and to share ideas and experiences with Japanese attendees how to convince more institutions to join Islamic banking industry," he added.Asked whether KIA has an interest in issuing Sukuk by Japanese lenders, Saleem did not rule out the possibility. "If it meets KIA's guidelines and policy, we will be happy to be involved in".According to Takeshi Maeda, Director General of the government-backed Japan Bank for International Cooperation (JBIC), JBIC plans to structure Shariah compliant financial products in Asian market with a view to intriguing the petro-dollars to strategic projects and infra structure building in Asia. JBIC set up last May a joint panel with three major Japanese commercial banks, including Bank of Tokyo-Mitsubishi UFJ, the world's biggest bank, to study Islamic financial practices. Wholly funded by the government, JBIC also plans to issue up to $500 million worth of Sukuk in Malaysia later this year, becoming the first Japanese lender to issue bonds managed by rules in accordance with the Quran's teachings.Islamic financing is based on Shari'ah, or Islamic law, which prohibits charging or paying interest. Instead, there are schemes for partnerships in trade in goods and services, direct investment and renting as well as profit sharing. Shari'ah also bans financing businesses related to alcohol, pork, gambling and weapons.With its assets worth more than $300 billion and annual growth exceeding 15 percent, Islamic financial service industry promises great potential, according to the IFSB. - Kuna

Vista centers Microsoft strategy to offer 'connected experiences'

SAN FRANCISCO — When Microsoft says Windows Vista is its most important product announcement in years, it isn't just feeding the hype machine.
The new operating system, to be made available to consumers Tuesday, will register a seismic impact on the software giant's bottom line and underscore Microsoft's future vision of computing for millions of consumers worldwide. Just ask Microsoft Chairman Bill Gates.
"Vista is the biggest thing for us in years," Gates said in a telephone interview. "It is at the core of everything we do."
Vista is the hub of Microsoft's unfolding "connected experiences" strategy, a treatise on how consumer-electronics gadgets — be they TVs, game consoles or music players — connect and their content is delivered to PCs and cellphones. The convergence of digital devices has dominated recent Gates speeches, including his keynote address at the massive Consumer Electronics Show in Las Vegas this month.

Orangutans re-learn monkey business in Indonesia

Kevin is a one-year-old orphan who's taking a walk on the wild side.
The Indonesian orangutan is one of 17 primates who were illegally captured and sold as pets but who are now learning to adjust to living in their natural habitat, thanks to the Sumatran Orangutan Conservation Programme in the North Sumatra province.
"Most of the orangutans in this quarantine are seized from houses. Kevin is the youngest," said programme manager Asril, referring to the recently captured primates.
"We also have a Borneo orangutan. We got him during a raid in Belawan. We estimate his age is 16," he added.
Most rescued animals need regular exercise to strengthen their muscles so they can again swing in the trees of the vast Sumatran forest.
Authorities say the orangutans will spend between six to 12 months in the quarantine center before being released into the Bukit Tiga Puluh National Park in Jambi province.
Many of the country's orangutans have been illegally taken to countries all over Asia and Europe and Indonesia is making continuous efforts to have them returned home.
The primate's population in Indonesia has been decreasing rapidly as their habitat in Borneo and Sumatra has been disrupted by illegal logging, forest fires, poaching of orangutan babies and the illegal pet trade.
In 2002, it was estimated there were around 60,000 orangutans left in the jungles of Borneo and Sumatra islands. Some ecologists say the number has now been halved and others say the species could become extinct in 20 years.

approvals fall of Mortgage

Mortgage approvals fell 11.1 percent in December from a year ago to 45,533, the first annual fall since April, a survey showed on Friday, indicating higher borrowing costs may be dampening demand.
The British Bankers' Association left its figure for underlying net mortgage lending reported last week unrevised at an increase of 5.8 billion pounds, a robust figure but well below the record 6.7 billion pounds' rise recorded in November.
Interest rate futures trimmed losses after the data but investors are still convinced the Bank of England will raise rates by the end of March and might even hike again later in the year, following this month's surprise increase to 5.25 percent.
"The BBA data add to some recent tentative signs that higher interest rates and elevated house prices could be starting to weigh down on housing market activity," said Howard Archer, an economist at Global Insight.
BBA director of statistics David Dooks played down the fall in approvals -- a forward-looking measure of the health of the market -- noting a broader look at the last three months of 2006 showed the housing market remained strong.

"The final quarter of last year, despite seasonally lower activity in December, showed the mortgage market to be stronger than at the same time a year earlier and lending still growing significantly at a time of rising interest rates," he said.
The majority of house market data has depicted strong demand and price increases despite rising borrowing costs. The BoE raised interest rates by a quarter-point this month following similar hikes in August and November last year.
But BBA approvals data has showed signs of weakening since the BoE's monetary tightening cycle began. Approvals rose an annual 20 and 22 percent in May and June respectively last year.