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June 30, 2006
New Bin Laden Tape
msn.com news
Osama bin Laden defended attacks by Abu Musab al-Zarqawi against civilians in Iraq, purportedly saying in a taped Web message Friday that the slain al-Qaida in Iraq leader was acting under orders to kill anyone who backs American forces.
Bin Laden paid tribute to al-Zarqawi in a 19-minute audio message posted on an Islamic militant Web site. The message has narration by a voice resembling bin Laden’s as a video shows an old photo of him in a split-screen next to images of al-Zarqawi taken from a previous video. In the message, bin Laden demands President Bush hand over the body of al-Zarqawi to his family and effusively praises the Jordanian-born militant, often in rhyming couplets. His voice sounded breathy and fatigued at times.“We will continue to fight you and your allies everywhere, in Iraq, Afghanistan, Somalia and Sudan to run down your resources and kill your men until you return defeated to your nation,” he said, addressing Bush.It was the fourth message purportedly put out this year by bin Laden. All have featured his voice in audiotapes. New video images of him have not appeared since October 2004. No immediate confirmation
The authenticity of the video could not be immediately confirmed. It bore the logo of As-Sahab, the al-Qaida production branch that releases all its messages, and was posted on an Islamic Web forum where militants often post messages. Typically, the CIA does a technical analysis to determine whether the speaker is who the tape claims and the National Counterterrorism Center analyzes the message’s contents.
June 28, 2006
The Portuguese are our favourites; New world champs
Portugal, Argentine, Brazil, Italy, France, Germany, Ukraine and England are through to the quarter finals.
June 27, 2006
Popular Fan
Italy win the match but Ukraine to the quarter finals
June 26, 2006
Malaysia's converts test freedom of faith
By Mohammed Sultan Aziz
KUALA LUMPUR (Reuters) - Five days after she declared legally that she had converted from Islam to Christianity, several officers from Malaysia's state Islamic department turned up at the woman's office and arrested her.
She said they took her, then 21, to a drug rehabilitation center for men, where a Muslim teacher counseled her on her conversion and on one occasion, caned her back. After two months, she found an unlocked door out of the compound and escaped.
"What they did was wrong. They shouldn't decide our beliefs for us," said the woman -- who asked not to be named -- of her ordeal in 1999.
While Malaysia is one of the world's most modern and relaxed Muslim countries, its treatment of apostates, primarily those who have given up the Muslim faith, has ignited a heated debate.
Malaysia's Federal Court could rule in the next few days on whether Islamic courts -- which have authority over the country's Muslims, accounting for more than 60 percent of the population -- have the sole right to judge apostates.
The ruling comes amid calls for capital punishment for apostasy, and follows a spate of civil suits by Malaysians seeking official recognition of their decision to leave Islam.
Half of Malaysia's 26 million people are ethnic Malays, who by law must be Muslim, while its Chinese and Indian minorities include Muslims, Christians, Buddhists, Hindus and Sikhs.
Islamic law is selectively enforced by local officials in each of Malaysia's 13 federal states. Unmarried Muslim couples caught in hotel rooms can be charged, while believers seen eating in the daytime during the fasting month of Ramadan can be fined.
Kelantan state, run by an Islamist party, has separate-sex supermarket queues, but the national capital, Kuala Lumpur, is more relaxed with plenty of dance clubs where men and women mingle openly. Yet many say Malaysia's secular status is being eroded.
In December, Islamic authorities gave Malaysian mountain-climber M. Moorthy a Muslim burial against the wishes of his Hindu widow.
Officials said he had converted to Islam before his death, despite assertions to the contrary by most of his family.
"Apostasy is not a new phenomenon but the issue has come to the forefront because it underscores the growing Islamization of a country that was intended to be secular," civil activist Haris Mohamed Ibrahim told Reuters.
Officials also destroyed a commune last July, arresting members of the Sky Kingdom cult which preached a synthesis of all religions and had a giant two-story teapot on its premises. The government said the cult practiced a "deviant" form of Islam.
BIG SIN
Malaysia's civil courts have said they cannot recognize conversions from Islam and refer apostates to the Islamic courts, where sentences for various offenses range from caning to jail.
Although such sentences are rarely carried out on apostates, Malaysians who leave Islam can find themselves in a legal limbo, unable to register their new religious affiliation or to marry non-Muslims. Many keep quiet about their choice or move abroad.
Rights activists say such barriers to conversion are at odds with Malaysia's status as a member of the United Nations Human Rights Council and violate the nation's constitutional guarantee of freedom of worship.
Neighboring Indonesia, which has the world's biggest Muslim population, has no official sanctions against such converts and recognizes civil marriages between Muslims and non-Muslims. In some Middle Eastern countries, where the conversion rates from Islam to Christianity are high, conversions are allowed and non questionable since the decision is a personal one, whilst in some gulf countries like suadi arabia the conversion is punishable by death; a matter that is being intinsively resisted by locals and human rights activists.
"Unfortunately, some people have fixed ideas about Islam and see apostasy as a challenge to the religion," said Norhayati Kaprawi of the Muslim women's group Sisters in Islam.
Some groups, including the opposition party Parti Islam se-Malaysia (PAS), want apostasy to be punishable by death. One government cleric said about 250,000 Malaysians had left Islam.
The Koran forbids Muslims to abandon their faith, but it doesn't specify the penalties, said Sohirin Solihin, professor of Koranic studies at Malaysia's International Islamic University.
But traditional writings, or Hadith, associated with the Prophet Mohammad proscribe death.
"The Koran is clear that there is no compulsion of religion but the issue of religious freedom is different for Muslims and non-Muslims. The Muslim understanding of this is different from the Western one," he said.
Earlier this year, the case of an Afghan man who faced the death penalty after he converted to Christianity sparked an international outcry. He was later granted asylum in Italy.
While efforts to make apostasy a crime punishable by death in Malaysia are unlikely to succeed given the government's multiethnic coalition of Malay, Chinese and Indian parties, many fear that obstacles to religious conversion will stay in place.
The minister in the Prime Minister's Department for religious affairs, Abdullah Md Zin, declined to comment. His spokesman referred questions to the government's Department of Islamic Development where officials declined comment.
But the department's Web site recommends isolating and counseling apostates and then jailing them if they fail to repent.
"If the person remains an apostate, it is left to the respective authorities to impose the fitting sentence that is death," the department said in its Malay-language "Frequently Asked Questions" section.
Heavy Rain in East Coast
A weekend of heavy rain created a nightmare for commuters in Washington, D.C., and the mid-Atlantic region Monday, spilling mud over the Capital Beltway, washing out roads and disrupting Amtrak service, and forecasters warned the storms won't be ending any time soon.
East Timor PM quits
Dili - East Timor; embattled prime minister, Mari Alkatiri, resigned on Monday, saying he would share responsibility for a political crisis that has gripped Asia's newest nation for over two months.
There was no immediate word on a replacement, but news of his departure was welcomed by thousands of protesters who have been demonstrating in the capital for the past week. They cheered and car horns blared as word of the resignation spread.
Alkatiri said he was stepping down to avoid the resignation of the nation's popular president, Xanana Gusmao, who had threatened to quit himself unless the prime minister left office.
"I am ready to resign from my position of prime minister of the government of RDTL (East Timor) so as to avoid the resignation of his excellency the president of the republic," Alkatiri told a news conference.
He said he was doing so "having deeply reflected on the present situation prevailing in the country ... assuming my own share of responsibility for the crisis affecting our country."
Alkatiri added that he was "determined not to contribute to any deepening of the crisis." He read out his statement and refused to answer questions.
The prime minister has been widely blamed for violence that erupted in late May as fighting within the armed forces spiraled into rioting, arson and looting in the streets of the capital, Dili.
The violence ended only with the arrival last month of a 2,700-strong Australian-led peacekeeping force that has disarmed the army and police and taken responsibility for security. Calls for Alkatiri's resignation have been the rallying cry of protests by thousands of Timorese that peaked in the past six days after damaging revelations in an Australian news documentary linked him to a plot to arm a civilian militia.
EXPECTED TO RESIGN
Many Timorese and foreign diplomats had expected Alkatiri to resign on Sunday after a meeting of his Fretilin party, which controls parliament.
But instead, the party issued a statement saying he would carry on, prompting one of the country's best-known political figures -- Nobel Peace Prize laureate Jose Ramos-Horta -- to resign from the key ministries of defense and foreign affairs.
On Monday, Ramos-Horta called a news conference to explain his resignation, adding another twist to a plot that would not seem out of place in a Graham Greene novel, right down to the setting on this sleepy, tropical heavily Catholic half-island of around 1 million.
Midway through he excused himself to take a phone call, then returned, smiling, to say:
"I am a little person with no consequence on this planet and there is other news for you to cover."
He then advised the media to go to Alkatiri's house.
Ramos-Horta is being touted as a possible replacement for Alkatiri should Gusmao ask parliament to form a national unity government to rule until elections due by May 2007.
Neither Ramos-Horta nor Gusmao -- both urbane and western-leaning -- belong to Fretilin. The party is seen in the West as socialist-orientated, a legacy of the years its leaders spent in exile in Mozambique or Angola during East Timor's long independence struggle.
Another possible contender for premier is Ana Pessoa, Ramos-Horta's ex-wife, who is a staunch Fretilin member.
Whoever takes over, many Timorese and potential foreign investors want to see more done to rebuild the country's infrastructure and develop projects to create jobs in a country where unemployment is around 70 percent.
Although Timor's only export is "boutique" coffee, the country has potentially vast untapped oil and gas reserves in the sea that divides it from Australia, and has already earned hundreds of millions of dollars in exploration rights.
East Timor was a Portuguese colony for centuries before a revolution in Lisbon in 1975 gave the territory a brief taste of independence. Indonesian troops invaded a few days later and Jakarta annexed East Timor in 1976.
After a 1999 vote for independence marked by violence blamed largely on pro-Jakarta militia with ties to the Indonesian army, an international peacekeeping force moved into the territory, ushering in a transitional period of U.N. administration before East Timor became a fully fledged nation in 2002.
June 25, 2006
Argentina and Germany yesterday's winners
June 24, 2006
France is Back and Viva Espania
June 23, 2006
Reviving the Peace
Israeli Prime Minister Ehud Olmert and Palestinian president Abbas agreed at an informal meeting in Jordan on Thursday to hold a summit in the next few weeks in a bid to revive the peace process. Shaking hands at a breakfast hosted by Jordan's King Abdullah II for Nobel prize laureates in the ancient town of Petra.
President Bashar al Assad meets President Mubarak in Egypt
The splendid Portugees heading for the cup
The splendid Portugal next.
Portugal yesterday proved beyond all doubts that they can win the World Cup. The so skilled portuguese played beautifully and kept in control despite the vigourous struggle the Netherlands put up.
Cristiano RONALDO (POR)
They’ve told me that I’ve only got bruising and I think that I’m going to be available for the next game. Our team is in really good shape to face England.
Brazil 4 Japan 1
June 22, 2006
Argentina Leads and Netherland Follows but both drew
June 21, 2006
The heat is on
June 20, 2006
Trade in the Arabia
By Hans-Heino Kopietz
The so-called Middle East is not quite as it appears in the media. Conducting business there is no more difficult or dangerous than in any other part of the world.
There is however one problem: in this market of some 400 million people situated between the Atlantic and the Persian Gulf, western preconceptions are resented. They can even harm your business profit. Legitimate business(and sometimes not so legitimate)is conducted by all the usual means and is very much encouraged and welcomed. But there are several points to consider.
Firstly, the term Middle East only denotes an arbitrary British geographical concept describing its location within the former global empire.
Secondly, there are twenty-two countries in the area, and the arbitrary term 'Middle East' does not describe their complex cultural, religious, ethnic and topographical diversity. Nor does it portray the varieties of political and economic systems, the great number of legal traditions, as well as the hugely different economic requirements, especially import or export capabilities and prospects, and sources of financing.
Thirdly, the term Middle East does not distinguish between Arabs, Turks, Iranians, Israelis, and certainly not the varieties of ethnic and religious schisms within these countries (for instance only about 50% of Persia [Iran] is inhabited by Persians; 20% of Iraq and Turkey are Kurds, etc.)
Generally, the people are predominantly Muslims of which the two most important parts are the Sunni and Shia. Persian-dominated Iran is mostly of the Shia persuasion, but so is Arab Iraq and Bahrain. Christians, of whom there are many in all these countries adhere to many different rites. About 10 % of Egyptians are Christian Copts and the Christians of Lebanon belong to a myriad of denominations. Tariq Aziz, previously Iraq's second most powerful political government figure is a Christian. Judaism, the official religion of Israel, also is made up of militant orthodoxy and the liberal and more secular camps. Many Jews continue to live in Muslim countries.
Nor is the area one big desert, as the dramatic mountains in northern Iraq, Turkey, Iran, Lebanon, and North Africa illustrate. The Arabian peninsula too has significant mountainous regions. Not all regions are short of water and only a few countries are rich in oil and gas. Only a few countries ban alcohol. And if they do, the regulations are easily circumvented. Thousands of years of experience with unpopular rulers have shaped the region's inhabitants into crafty survivors. They love life with all its pleasures and pain, defeats and glories. Only a very few countries chop off hands or heads (and not those of Westeners), and only in a very few countries are the rights of woman restricted.
And certainly only a tiny minority of people are passively or actively involved in terrorist activities. The region's military conflicts and its diplomatic confrontations with western powers in the past have not impeded commercial relations. Indeed, western economies have benefited from them.
This vast area with its motley collection of humanity has therefore only three things in common 1. a profound respect for the revealed religions. 2. a profound pride of their respective language (principally Arabic, Turkish and Farsi) and 3. The profit motive.
When God created these people, it appears that He in his infinite wisdom genetically pre-programmed them with a highly acute sense for business affairs.
In 1996, UK trade with the Middle East and North Africa amounted to £8,875 million, up by some 24% from the previous year, the largest increase since the 1970s, leaving arecord positive trade balance of £5,210 million. This means the area constitutes over 12% of the UK's trade outside of the European Union. Saudi Arabia and Turkey are the most significant trading partners with £4050 million of UK exports to these countries. The United Arab Emirates, Kuwait, Oman, Iran, Egypt, Morocco, and Libya account for some £2000 million worth of British exports. Mauritania and Iraq, the latter ostensibly under sanctions, recorded the highest growth with 139% and 116% respectively.
The Middle East is still deficient, although improving in the manufacturing industry. The agricultural sectors in many countries have experienced dramatic reversals, mostly due to high population growth. Forty years ago some were net exporters, today they are net importers.
In this volatile markets, with its vast opportunities as well as some pitfalls and risks, trade advice will be facilitated by The Middle East Association of 34 Bury Street, London, which has since 1961 provided incalculable to British exporters. Its complimentary and equally authoritative organisation, COMET (Committee for Middle East Trade) provides Government and industry advice on export and investment opportunities in the area.
The Department of Trade and Industry, the numerous Chambers of Commerce, which have country and market specialist in situ especially in the Arab-British Chamber of Commerce (London) as well as regional trade missions in London will guide the potential exporter or investor to a suitable country and market.
But there are other considerations when dealing with this area, such as transport, insurance, banking. languages, and very importantly security arrangements for property and personnel. After seeking advice for a suitable export market, the company (depending on the size and budget) should seek a professional representative with regional expertise, and preferably an adequate knowledge of Arabic, or at least French. English is used in the eastern Mediterranean, while French is predominantly used in North Africa, but also in Egypt, Syria and Lebanon
Potential exporters and investors must also seek advice from Banks with extensive Middle Eastern experience, such as Lloyds, Morgan-Grenfell (both in London), and smaller Banks such as Schroeder-Asseilly (London/Beirut) before embarking on the adventure.
Always remember, Middle Eastern countries need and welcome you, but they have much longer commercial experience than you, several thousands years of experience. Good luck, and good hunting.
Viva Espania; they done it again
June 19, 2006
France a disappointing draw
Korea Republic came back to earn a 1-1 draw with France.
Brazil as usual winning 2 - 0 on Australia.
Croatia drew with Japan 0-0.
June 18, 2006
USA back in action
USA drew with the strong Italian team yesterday. The Italians are world champs in this game and if USA can tie up with these awsome wonderers, they surely can go a long way up. Good luck America and keep nerves cool we don't want any more red cards.
Portugal won its game against Iran 2-0.
Ghana pressured throughout the game and won the Czech Republic 2-0.
June 17, 2006
Argentina capturing the heart of the world and Maradona dancing
www.graincon.com
Argentina celebrated a six-goal show against Serbia and Montenegro to book their place in the Round of 16 along with the Netherlands who had to work hard to see off Côte d'Ivoire.
Netherland 2 Ivory Cost 1.
Angola surprises Mexico 0-0
HANOVER, Germany — Angola catches on to this World Cup thing fast. Goalkeeper Joao Ricardo frustrated Mexico with a some dramatic saves and the Black Antelopes, down to 10 men for the final 11 minutes, drew 0-0 with the heavily favored Mexicans on Friday night to keep alive hopes of a second-round berth at the World Cup.
June 16, 2006
Rooney brings England back
England's Wayne Rooney, front, takes a shot despite the challenge of Trinidad and Tobago's Brent Sancho during their World Cup Group B soccer match. Rooney brought the English back and they won in style 2-0. Now the hopes are high.
Paraguay is out, perhaps a bit harshly after the shots they took in the second half. Sweden has virtually clinched a spot in the second round with a lone goal in two games. If Trinidad & Tobago can beat Paraguay by two while Sweden loses to England, then the Soca Warriors will move on. Every other scenario favors the Swedes.
Ecuador officially moves into the round of 16 as the final whistle blows. They won their match against Costa Rica 3 - 0.
June 15, 2006
Viva Espania and Germany, Tunisia drew with Saudia
GERMANY has guaranteed its place in the second round of the World Cup it hosts after a most dramatic 1-0 victory against Poland this morning (AEST).
Spain: Scored a sizzling 4 goals to mark its first win in the world cup against Ukraine.
Tunisia: Drew 2 all with Saudi, both teams got them selves a point.
June 14, 2006
Tunisia and Saudia, Arabian colours in the skies of Almania
Tunisia tonight bears the hopes of Arabia. Arabs are crying loud for the young Tunisian players who proved that they are up to the challenge. Tunisia is playing the Saudia team who too have high hopes and is playing in full force tonight. The Saudi's are prepared for the match and promising to put up a performance that will yield them decent expectations in this champion ship.
President Bush back from Iraq
President George W. Bush shakes hands with Iraqi President Jalal Talabani, right, during his visit Tuesday, June 13, 2006, to the U.S. Embassy in Baghdad. With them is U.S. Ambassador to Iraq Zalmay Khalilzad.
US President George W. Bush returned to Washington early Wednesday after a surprise visit to Iraq where he supported the new Iraqi government and US troops in their fight against insurgents.
Bush's Air Force One jet landed at Andrews Air Force base, outside the capital, at 3:00 am (0700 GMT), and was escorted, sirens blaring, by police in a motorcade to the White House.
Bush made no comment to reporters, who caught a quick glimpse of him as he got off his plane and into a waiting car.
Travel was by motorcade instead of helicopter because of tents set up on the White House lawn for a congressional picnic later Wednesday.
Brazil, South Korea win, France draws
Brazil: Kaka scored in the 44th minute Tuesday night, but Croatia made the Brazilians work for every bit of the 1-0 victory that preserved their record eight-straight winning streak at the World Cup. A quick evaluation of what we saw yesterday: Brazilians are going to meet either the Italians or the Germans in the final match, quote us.
South Korea: South Korea's long wait for its first World Cup victory on foreign soil ended against the tiny African nation, which put up an unexpectedly spirited performance given the coaching turmoil that ended only moments before the match.
France: Star-studded France were held to a 0-0 tie by Switzerland on Tuesday, bringing back memories of their horrid World Cup 2002 performance, when Les Bleus were knocked out in the first round without finding the net.
June 13, 2006
Private Banking
During the 20th century and beggining of the 21st , the Arab countries have turned into a hyper business arena where almost all global banks have located their finest resources whilst attempting to outstand the competitors in securing the higher share of the Arabian markets. Some banks have succeeded in generating vast profits that are beyond the imagination of common people. In 1997, I read a report showing one global bank in Saudi Arabia making a net profit of 3 billion US Dollars from trade services alone, a figure that exceeded the collective profits of Saudi Banks at that time.
The Swiss Banking Corporation is a major player which believes that it needs more than an offshore base to attract Gulf investors and has established offices in Dubai. "The private banking market will develop from a mainly offshore business to one where both on and offshore services are required," predicts Ernst Balsiger of SBC private banking.
Dutch giant ABN Amro has also invested heavily in building up a regional presence. It has locations in Dubai, Abu Dhabi, Saudi Arabia, Bahrain, Lebanon and Turkey.
Confined to global banks, such competition is a legitimate one. It is only righteous that those who better provide the needed services at the higher standards in the most secure and efficient manner eat the cake.
The winds of competition are also blowing through the region's personal banking market, particularly at the top end. Local banks in the region have seen their wealthiest clients take their funds to international private banks. Now some are responding by developing their own services.
The opportunities for domestic private banks appear to be very great indeed. One area where the domestic institutions have a distinct advantage is in catering to those local investors who wish to remain within Islamic law. The Arab Gulf banking sector is fully exposed to these trends which are running parallel with the resurgence of interest in Islamic banking and the desire, especially among the rapidly growing Muslim middle classes in the Middle East and elsewhere for Islamic banking solutions.
Clearly the Islamic banks will continue to play an increasingly important and competitive role when seeking business from the local nationals and expatriates from neighboring Islamic countries.
local banks in the Arab Gulf and elsewhere, as well as the Islamic banking windows of international conventional banks, are offering an ever wider number of Islamic banking products of increasing sophistication to local Arab Gulf clients.
The prohibitions on trading, discounting, debt or interest payment impose certain restrictions. Although institutions are working to devise products which circumvent these constraints, gaps remain. "Islamic banks, although growing, do not yet offer all the conveniences and choices available in investment," concedes Youssef Shahed Youssef, a senior vice president of the Faysal Islamic Bank in Bahrain.
Not that the overseas players are allowing the local houses a free hand when it comes to cornering this market. Venerable Swiss bank Pictet et Cie, for instance, has teamed up with Kuwaiti-based finance house The International Investor and developed a joint venture private banking service aimed at Islamic investors.
"The company offers asset management and other financial services and products to anybody seeking Swiss banking services who has an Islamic tradition," explains Adnan Al-Bahar of The International Investor.Local banks are not content with just directing their energies towards Islamic investors. Some are seeking to broaden their horizons and develop private banking services which will cater to all investors.
The National Bank of Oman is one organisation looking to enter the market shortly. "We are looking at developing a private banking service," says Salaam Al-Shasky, deputy general manager of retail and investment banking. "We are quite capable of managing our clients' money well for them, and adding private banking services to that expertise is something we would like to do in the longer term," he explains.
The HSBC has already launched its own product and has the added advantage of a network of 30 branches across the Arab world. Locations in Jordan, Lebanon, the Palestinian Authority and in Egypt through its associate company Egyptian British Bank makes it ideally suited to Arab expatriates. In the Gulf, it has centres in UAE, Qatar, Bahrain and access to a network of branches in Saudi Arabia through the Saudi British Bank. Arab Bank, centred in Jordan, is another institution that can boast an impressive network of branches across the Middle East.
Bahrain's Middle East Bank has also developed its own private banking service. To date, it has concentrated on the development and distribution of mutual funds and treasury products, relying on its own expertise. However, other local competitors have drawn on internationally renowned fund managers for portfolio management services.
Trying to compete in the broader private banking market is certainly more of a challenge. Local institutions enjoy neither the cachet of a Swiss bank nor access to the global investment expertise that many American and European private banks can offer.
Globally, the private banking market is becoming more competitive, and the Middle East is no exception. David Rosier, who is chairman of the Private Client Division at Mercury Asset Management, part of Merrill Lynch, says: "In the past, the older generation of nationals in the Arab Gulf tended to be comfortable in a long-standing relationship with a Swiss bank. The money, largely, would be placed on deposit. We think that has changed. The new generation, especially, want to see the money work harder."
According to a recent study by Merrill Lynch and Gemini Consulting this group controls wealth in excess of $1 trillion. The vast majority - a potential clientele of 200,000 individuals, the study estimates - are based in the Gulf States. A very large proportion of the total HNWI wealth in the Arab world is accounted for by the six Arab Gulf countries, most particularly Saudi Arabia, the UAE and Kuwait.
Private banking has become an amorphous term as the number of players in the market has increased. Many have developed different types of services, thus blurring the definition of what a private bank is. It can be difficult to pin down a definition because private banking is not a product-defined area. This is because it is not a product defined business. The key element is service, but this is often overlooked in the corporate machismo, which means that people prefer to be associated with the intellectually important side of the business rather than the service side. But it is the service that is vitally important.
For some, it is the relationship between the bank and the customer that is the key. The most important thing when dealing with individuals is to understand them as people, to discover their risk profile. This relationship is vital and is an emotional thing. The only way to understand clients is to put a senior manager in front of them and talk to them about the services they require.
Private banking is a fashionable term with a lot of different meanings. You could say that it's just a more personal service than the clearing banks provide. The key feature is that products are tailor made for groups of clients, rather than just taken from a whole suite of generalised products."
Private banking providers differ in the type of client they are targeting. The most bespoke service providers are usually looking for clients with more than $1 million to invest. Institutions such as Credit Suisse and Citibank Private Banking, both of which are based in Zurich, have this minimum investment level. Lloyds Bank, meanwhile, targets clients with in excess of $500,000. Banking and portfolio management services can sometimes be accessed with as little as $100,000. Jersey-based Royal Bank of Scotland is one house which is looking for these "smaller" investors. At that level the service will inevitably be less personalised whilst an investment portfolio will usually concentrate on mutual funds and unit trusts, rather than individual equities.
HSBC Private Bank is targeting the higher end of the market. Clients with minimum deposit of $1 million although they do have clients who place a lot more than that. They travel the world to look after their clients, and offer a window to the whole HSBC Group, as well as providing banking services and advice.
Credit Suisse, a leading Swiss institution, takes on clients with at least $1 million. They focus on their clients financial and personal well-being. They even offer advice on non-financial aspects of life, like bringing up a family, organising property, planning for children's education… Imagine.
Other banks are targeting those with less funds. Citibank’s Citigold private banking service is aimed at those with $100,000 and above. Their target market can be described as "the wealth creators and the early rich, entrepreneurial people, internationally mobile executives; generally, people who are time starved."
A number of internationally renowned banks and institutions have established local centres in the Middle East, rather than trying to market their services from overseas.The Swiss Banking Corporation is a major player which believes that it needs more than an offshore base to attract Gulf investors and has established offices in Dubai. "The private banking market will develop from a mainly offshore business to one where both on and offshore services are required," predicts Ernst Balsiger of SBC private banking.
Dutch giant ABN Amro has also invested heavily in building up a regional presence. It has locations in Dubai, Abu Dhabi, Saudi Arabia, Bahrain, Lebanon and Turkey.
Lloyds Bank International Private Banking also operates out of Dubai. It focuses on the discretionary management of investment portfolios and banking services. "Most of the products are booked in Switzerland which is popular here as a location for assets to be placed," says the bank's Osmond Plummer.
What international giants such as these can offer is global reach. Merrill Lynch, for instance, which has offices in Dubai, has a worldwide presence, not only in terms of investment expertise but also in being able to offer locally based private client services to high net worth individuals in numerous countries. Citibank, meanwhile, combines a presence in the Arab world with offices in 100 countries across the globe.
The core of most private banking services is cash management and traditional banking products. Some providers offer loan facilities and credit or charge cards. In the Middle East, multi-currency facilities are particularly popular. Current and deposit accounts in a wide range of global currencies are frequently available, whilst ATM card facilities allow clients to withdraw funds around the world. The true private banking service would not just make these facilities available, but provide the individual with advice in choosing the right solution and ongoing support in ensuring that the client makes best use of what is on offer.For the expatriate HNWI, for instance, multi-currency cash management in a private banking service should include taking the necessary steps to not only match holdings with current expenditure but also to look ahead to the currency that the expatriate will ultimately need to invest in. A Jordanian executive, for instance, who intends to return home, will ultimately need to have long term cash holdings denominated in Jordanian Dinars, but is probably being paid in US dollars and spending in the local currency.
Private banking extends well beyond bank account facilities and into what can be loosely termed as wealth management. This can include company formations, establishing and running trusts and the management of investment portfolios. Some banks have also developed guaranteed products to appeal to the more risk averse local investor.Not surprisingly, the cachet of using a private bank comes at a price. Charges vary and there are no uniform guidelines. The key, of course, is value for money. Many charge annual fees for portfolio or trust management, whilst some also levy a yearly charge for banking and additional services. Custody, dealing, foreign currency exchange and transaction costs may also be levied.
In spite of all the competition, the local banks certainly have a role to play in the private banking market. The local banks have a lot going for them. The possibility of having someone just down the road looking after your investment is attractive compared to telephoning an anonymous voice overseas.
If done correctly, the whole relationship-management feature can be greatly superior to anything that can be achieved long distance. Cultural similarities and an empathy with local needs are also advantages for the local private banks. Whether these advantages can be turned into greater market share remains to be seen.
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Italia, Czechoslovakia and Australia move forward
The Americans yesterday disappointed those audience from all over the globe who came to see them surprising the world and competing for the cup. Now they need a miracle to regain their image amongst the world's footballers. Czech won 3-0.
In a breath taking game, the Italian masters yesterday proved beyond doubts their intentions to bring the Cup back to Italy for the forth time in the history of the game. Yesterday, every one believed they can and indeed will do it after their splendid win on Ghana 2 - 0.
Australia waited 32 years for this, enduring so many heartbreaks in World Cup qualifying. Then it appeared a horrible blunder by the referee could deal a fatal blow to their chances. Second-half subs Tim Cahill and John Aloisi changed all that, and they'll be the toast of the country. It's 3-1, and given Japan's inability to threaten the Australian goal, it's a fair result to a wonderfully entertaining game.
June 12, 2006
Netherlands, Mexico and Portugal got it right
Robben stretched the Serbia and Montenegro defence to breaking point in the first half of the Group C victory today (AEST), earning rave reviews for his performance.
He scored the only goal after 18 minutes, controlling a beautifully weighted through ball from van Persie and slotting home past goalkeeper Dragoslav Jevric.
Portugal gets the win it expected, but with far less style, excitement or fanfare than it hoped. In what was at best a less-than-enthralling game after the 10th minute, Angola will be happy with the way it responded.
Mexico: And there's the whistle. It wasn't the most convincing 3-1 win you'll ever see, but Mexico will be delighted with the result.
Oswaldo Sanchez performs admirably in returning after his father's death to earn the victory in net. Coach Ricardo La Volpe -- probably a touch nervous after using all three subs just 52 minutes in -- looks like a genius having inserting Zinha, whose assist and goal in the second half made the difference for the winners.
90th minute: Two minutes of stoppage time on the way. Iran lines up a free kick from 35 yards, but nothing comes of it. Mexico appears content to let the clock wind down.
June 11, 2006
Argentina wins elegantly
Hernan Crespo and Javier Saviola took advantage of some shaky defense to score first-half goals, and Argentina beat Ivory Coast 2-1 Saturday night in the first game of what many think is the toughest World Cup group.
England flukes it 1- 0
FRANKFURT, Germany — England got the win all right, without ever scoring a goal, luck served them well.
England thrilled its legions of red-and-white clad fans Saturday with a glorious, if not fortuitous, start in the World Cup, getting an own-goal off David Beckham's curling free kick in the third minute and holding on for a 1-0 victory over the South Americans.
The thrilling start prompted bold and loud bursts of "Rule Britannia," but then, in the second half, the team went flat — cooked by a blistering sun and its own miscues.
"We let them pass the ball around too much," Beckham said. "But we were exhausted. We can put it down to that, because we are usually strong and our fitness levels are high."
The match's one and only highlight came when Paraguay captain Carlos Gamarra inadvertently headed in Beckham's kick less than three minutes in, the fastest own-goal in tournament history. And when no one else could find the net, it was the first time a 1-0 World Cup game was decided on an own-goal.
June 10, 2006
GERMANY 4-2 COSTA RICA
Six goals in the FIFA World Cup™'s opening fixture, including two crashing thunderbolts, saw Germany off to the best of starts against Costa Rica.
June 08, 2006
AL Zarqawi killed in a US air raid
