US stocks end 2015 mostly flat Page III The US stock market took investors for a wild ride in 2015, but in the end it was a trip to nowhere. Despite veering between record highs and the steepest dive in four years, the stock market ended the year essentially flat, delivering the weakest performance since 2008.

INS IDEEU-Ukraine trade deal comes into forceUkraine’s free-trade deal with the EU comes into effect Friday, coinciding with the start of Moscow’s food embargo against Kiev that will force the impoverished former Soviet republic to revisit its economic model. The free-trade accord is part of the broader EU Association Agreement—signed at the end of June 2014. Pg: III

E-commerce biz to cross $38b markHelped by increasing internet, mobile penetra-tion and growing accepta-bility of online payments, e-commerce market in India is likely to touch $38 billion mark in 2016, a study revealed here on Friday. The study done by the industry lobby Associated Chambers of Commerce stated it is likely that there will be a huge 67 percent jump in 2016 over the $23 billion revenue for 2015. Pg: IV

SATURDAY, JANUARY 2, 2016 (18-09-2072) kathmandupost.ekantipur.com

moneymoneyfinance&economyfinance&economy

kathmanduposttheCROSS CURRENCY

US Dollar 106.28

Euro 115.42

Pound Sterling 156.75

Japanese Yen 8.83

Chinese Yuan 16.37

Qatari Riyal 29.18

Australian Dollar 77.57

Malaysian Ringit 24.75

Saudi Arab Riyal 28.37HOW TO READ THE TABLEThe chart shows the rates of nine world currencies. Move across the table to find rates of exchange between any two currencies. One unit of the currency mentioned vertically is worth that amount in the currency mentioned horizontally.

USD EUR JPY GBP CHF CAD AUD INR NR

NR 106.2800 115.4200 8.8300 156.7500 106.1200 76.6500 77.5700 1.6015

INR 66.155 71.858 0.5495 97.543 66.083 47.6146 48.307 0.6244

GBP 0.6781 0.7338 0.0056 0.6766 0.4889 0.4946 0.0103 0.0064

JPY 120.3 130.45 178.5714 120.06 86.66 87.7700 1.8198 0.1133

EUR 0.921 0.0077 1.3628 0.9188 0.6639 0.6717 0.0139 0.0087

USD 1.0858 0.0083 1.4747 0.9990 0.7213 0.7296 0.0151 0.0094

F O R E X

Exchange rates fixed by Nepal Rastra Bank

C M Y K

ASSOCIATED PRESS NEW YORK, JAN 1

Our cars, our homes, our appli-ances and even our toys: Things around us are going to keep get-ting smarter. In 2016, we’ll entrust even more of our lives and their intimate details to machines—not to mention the companies that run them.

Are we ready for that?You might, for instance, like

the idea of turning on your TV with a spoken command—no more fumbling for the remote! But for that to work, the TV needs to be listening all the time, even when you’re not watching. And even when you’re discussing something extremely personal, or engaged in some other activity to which you’d rather not invite eavesdroppers.

How much should you worry? Maybe your TV never records any of your casual conversations. Or maybe its manufacturer is recording all that, but just to find ways to make the TV better at understanding what you want it

to do. Or maybe it retains everything it hears for some other hidden purpose.

You may never know for sure. At best, you can hope the compa-ny keeps its promises on privacy. More important, you have to trust that its computer systems are really secure, or those prom-ises are suddenly worthless. That part is increasingly difficult to guarantee—or believe—as hack-ing becomes routine.

And here’s the chief quandary: Every technological benefit comes with a cost in the form of a threat to privacy. Yet not paying that price has its own cost: an inability to participate in some of technology’s greater achievements.

Because smart gadgets thrive on data—data about you and your habits, data about what large numbers of people do or say or appear to want in particular situ-ations—it’s difficult not to share pretty much everything with them.

Doing otherwise would be like turning off your phone’s location

services, which disables many of its most useful features.

The consequences aren’t restricted to phones and TVs:

Kids will be able to talk to more toys and get personalized, computer-generated responses. Does the “don’t talk to strangers” rule apply if the stranger is the

Hello Barbie talking doll or Dino, the dinosaur powered by IBM’s Watson artificial-intelligence sys-tem? Cars will work with GPS technology and sensors in park-ing meters, roads and home appli-ances to help route you around traffic and turn on your liv-ing-room lights as you approach

the driveway. But that can also generate a detailed record of your whereabouts.

Thermostats from Nest and others will get smarter at con-serving energy when you’re away. Potential burglars might find that information handy.

Home security cameras are getting cheaper and more plenti-ful, but they’re sometimes inse-cure themselves, especially if you set them up clumsily.

There’s already a website devoted to showing video from cameras with no passwords. Though they are mostly outdoor or business cameras, one was trained on a baby’s crib, and another in a living room.

Wearable health devices will track your heart rate, fitness lev-els and more—and share achieve-ments with friends and family. But slacking off may carry a heavier cost than those extra hol-iday pounds, particularly if your insurance company yanks dis-counts for meeting fitness goals.

Software from Google and Facebook will get even more

refined to help you cut through the noise. That’s great if Facebook is showing you posts from friends you already interact the most with, but will a long-lost friend’s plea for help go unan-swered because you don’t see it?

The pending onslaught of pri-vacy trade-offs might seem trivial when it comes to a talking—and listening—Barbie.

But maybe it’s less so when your phone knows enough about you to remind you it’s time to leave for an important interview (if the alternative would be los-ing a shot at that job) or your smart home can really tell you if you turned off the oven before leaving for an international trip.

“The encroachments on our privacy are often self-inflicted in the sense that we will accept the trade-off one bit at a time,” says John Palfrey, co-author of “Interop: The Promise and Perils of Highly Interconnected Systems.

And these trade-offs can be quite subtle. Technological advances typically offer immedi-

ate, tangible benefits that, once you’ve put enough of them together, can indeed revolutionize daily life.

Can you imagine living your life without a smartphone? A few years from now, you might goggle at the thought of managing your day without constant advice from Siri or “OK Google.”

As for the risks, they’ll tend to be diffuse, abstract and often dif-ficult to ascertain even if you’re paying attention—and most peo-ple won’t.

In a study released Wednesday, the Pew Research Center says about half of American adults have no confidence that they understand what’s being done with their data, and about a third are discouraged by the amount of effort needed to get that under-standing.

In short, convenience usually wins. Shiny new things are inher-ently attractive, and it takes a while for some of us to get uneasy about the extent to which we may be enabling our own surveillance.

Gadgets around us will keep getting smarter, like it or notT H E T EC H N O LO GY R EVO LU T I O N

n In this Feb 14, 2015 file photo, Hello Barbie is displayed at the Mattel showroom during the North American International Toy Fair in New York. AP/RSS

Farmer helpline being launched in 25 districts

SANGAM PRASAINKATHMANDU, JAN 1

The government has launched a mobile phone service named Kisan Sim to educate and inform farmers about the weather, agricultural exten-sion service, crop insurance and other matters in a bid to boost productivity and cut losses from climate hazards.

Free mobile sim cards with a Rs100 balance will be dis-tributed to 5,500 farmers in 25 districts under the Agriculture Management Information System project. “We have signed an agree-ment with Nepal Telecom to provide this service,” said Shyam Kishore Sah, spokes-person of the Ministry of Agricultural Development.

This first ever farmer help-line in Nepal provides high quality and supporting infor-mation to farmers, enabling them to make more informed decisions when preparing the ground, planting, managing pests and harvesting, he said.

The climate and weather news is integrated in the phone-based agricultural information that will advise and support smallholder farmers. Those who have Android smartphones should download the application Hamro Krishi which will ena-ble them to get information offline.

“Farmers will get early warning information about drought, rainfall and rising temperature through regular SMS so that they can act accordingly,” said Sah. “The major objective of the project is to keep farmers abreast of climatic behaviour and pro-tect them from distress.”

Besides, farmers can ask questions through the mobile service about when to apply fertilizer and weed. They can also ask about pest attacks on crops and protection meas-ures, he said.

Contact numbers of agri-culture offices and crop insur-ers in the district, toll free numbers, audio notices and success stories related to the agriculture sector will be pro-vided to farmers.

“This technology has been particularly developed to bridge the knowledge gap in rural areas,” Sah said. The service will not provide infor-mation about crop prices and market access, but such pro-grammes can be integrated in the service in the years ahead, he added.

According to the ministry, the District Agriculture Office will form a committee to select farmers’ groups for the services.

Piloted in Banke, the pro-ject is being implemented in three phases. In the first phase, it will cover eight dis-tricts—Dhankuta, Sunsari, Siraha, Kavre, Bara, Rupandehi, Banke and Jumla.

In the second phase, the project will be implemented in Sankhuwasabha, Jhapa, Morang, Saptari, Mahottari, Chitwan, Surkhet and Kailali; and in the third phase, it will be extended to nine districts—Darchula, Doti, Rukum, Dang,

Mustang, Kaski, Palpa, Dhading and Dolakha.

The Agriculture Manage-ment Information System is one of the four components of a pilot programme on Climate Resilience funded by the World Bank and implemented by the ministry.

Nepal’s farm sector employs 66 percent of the pop-ulation and accounts for 33 percent to the GDP, but it is highly exposed and vulnera-ble to extreme climate events and impacts of climate change. Agricultural produc-tion is constrained by fre-quent natural disasters like flood, drought, landslide, intense rain, hailstorm and cold and heat wave.

According to the ministry’s statistics, 61,000 hectares of paddy fields were abandoned last summer due to poor rain-fall and drought in many cen-tral Tarai districts. Likewise, crop failure has been reported on 1 percent of the country’s paddy fields.

The Food and Agriculture Organization (FAO) of the United Nations has projected that climatic conditions in Nepal will worsen, and that there may be even more fre-quent occurrences of cli-mate-related extremes and negative impacts on food pro-duction.

“However, by adopting the right measures, it is possible to adapt effectively to the chal-lenges posed by climate change. Such measures require a comprehensive approach that includes strengthening the capacities of institutions and delivering need-based services to farming communities,” the FAO said.

Shortages stall construction work at priority projectsPOST REPORTKATHMANDU, JAN 1

The fuel crisis and shortage of building materials have stalled the construction work of Nepal’s first priority pro-jects with 25 percent of them recording 80 percent progress during the first four months of the fiscal year, the National Planning Commission (NPC) said in a progress report.

Only 82 out of the 326 top priority projects have achieved best performance. The government puts projects showing more than 80 percent progress under the best per-forming category.

Similarly, 73 projects (22 percent) have achieved pro-gress of 50-80 percent while 115 projects (35 percent) have completed less than 50 percent of their construction work during the review period. The status reports of 56 projects (18 percent) are not known, the report said.

Finance Minister Bishnu Poudel said that there was a need to reprioritize large development projects based on their chances of being completed.

Speaking at the 35th meet-

ing of the National Development Action Committee (NDAC) on Friday, he said that most of the devel-opment projects were facing problems due to lack of fuel and construction materials.

According to the NPC, the government has put 468 pro-jects in this year’s priority list. Among them, 326 projects have been classified as top priority, 120 projects second priority and 22 projects third priority.

In fiscal 2014-15, there were 491 development projects under construction. Of the 339 projects in the top priority list, 199 projects were able to complete 80 percent of the construction work.

Poudel said that shortages of fuel and materials had

affected many development projects. “Due to this reason, the government has been una-ble to spend Rs90 billion of the capital expenditure budget for reconstruction,” he said.

The country has been reel-ing under severe shortages of various products due to a trade embargo imposed by India that has continued for more than three months. The embargo on cargo movement has brought life to a near standstill.

Market prices have zoomed

and economic growth has slowed. The government has projected that the country’s economic growth could be less than 2 percent this year while inflation has already exceeded 10 percent in the first four months.

Similarly, the government’s revenue collection has plunged. Poudel said the gov-ernment was exploring new ways to increase revenue to make up for the deficit in reg-ular sources. During the first five months of the current fiscal year, government missed its revenue target by Rs50 billion.

The finance minister also stressed the need to focus on the reconstruction of earth-quake affected areas. “The effort will help increase eco-nomic activities,” said Poudel, adding that the government would manage sufficient fund-ing for national pride projects so that they wouldn’t have to shut down for lack of money.

Meanwhile, Minister of Peace and Reconstruction Ek Nath Dhakal said that the gov-ernment had not been able to spend capital resources

because it failed to appoint officials in many areas.

Home Minister Shakti Basnet said there was a need to revise the priority list of projects. According to him, the absence of elected people’s representatives at the local level had also resulted in the projects’ missing their deadline.

Likewise, Minister for Information and Communi-cations Technology Sherdhan Rai called for an effective monitoring and evaluation system to ensure the timely completion of development projects.

Meanwhile, the NPC has planned to recommend to the respective ministries to issue directives along with suitable standards within two months in a bid to speed up the con-struction work of multi-year projects.

The NPC has also planned to ask the respective minis-tries to send a list of the required human resources at short-handed government offices to the Public Service Commission so that addition-al staff can be arranged.

IN A NUTSHELLn Only 82 projects (25 percent) out of the 326 top priority projects have

achieved best performance i.e. more than 80 percent progressn 73 projects (22 percent) have achieved progress of 50-80 percentn 115 projects (35 percent) have completed less than 50 percent of their

construction workn Status reports of 56 projects (18 percent) are not known

According to the NPC, the government has put

468 projects in this year’s priority list

n A file photo shows farmers harvesting paddy in Pokhara.

Free mobile sim cards with a Rs100 balance will be distributed to

5,500 farmers in 25 districts

national development action committee meet

new year celebrations

n Tourists spend a good time with black headed gulls as they celebrate the New Year’s Day in Kunming, southwest China’s Yunnan Province, on Friday. XINHUA

moneyeconomy IISaturday, January 2, 2016 | thekathmandupost

‘ANA in billion dollar Airbus deal’TOKYO: Japan’s All Nippon Airways is buy-ing three Airbus A380s in a billion-dollar deal, business daily Nikkei said Friday, making it the first Japanese carrier to own the superjumbo jet. The Japanese airline plans to introduce the double-decker planes on flights to Hawaii and other overseas destina-tions, in an effort to boost its international business. The company paid about 150 billion yen ($1.23 billion) for the three A380 planes, which have 500 seats, more than double the number of spots on ANA planes that currently fly to Hawaii, the business daily said. In 2014, ANA was ahead of its rival Japan Airlines (JAL) in terms of passenger count on international flights, but JAL served more people on the Tokyo to Hawaii route -- 35 percent of all Hawaii-bound passen-gers compared to ANA’s 20 percent. (AFP)

Tourists may soon have aerial view of MumbaiMUMBAI: Tourists will soon get to have an aerial view of Mumbai from a helicopter, thanks to Maharashtra Tourism Dvelopment Corporation (MTDC) and Pawan Hans Ltd. The scheme, Mumbai Darshan, ini-tially with two choppers, would be launched on January 7. The helicop-ters will take off from the Juhu airport and fly northwards, on the west-ern side of the city to avoid interference with the air traffic at the Mumbai airports. “A base formula of around Rs.320 per minute, plus taxes, has been arrived at between the state gov-ernment and PHL, for the Mumbai Darshan. Initially, two choppers will be deployed and it will be gradually increased,” MTDC man-aging director P.J. Nainuttia said. He added that subsequently the rides and tours would include South Mumbai, Matheran, Murud-Janjira, Ajanta-Ellora at Aurangabad, Nashik, Shirdi, the pristine beaches of Konkan and the Tadoba. (IANS)

GE wins Saudi power plant contract NEW YORK: General Electric announced Thursday that it had won a contract worth nearly $1 billion from the Saudi Electricity Company to build and supply a power plant in northern Saudi Arabia. Under the con-tract, the US industrial giant will build the Waad Al Shamal combined-cy-cle power plant and pro-vide four advanced gas turbines, a steam turbine and turbine maintenance services. Waad Al Shamal will serve phos-phate mining operations in an area of Saudi Arabia that the govern-ment has targeted for industrial development, GE said in a statement. The 1,390-megawatt plant, which also will have solar technology, will be able to provide the equivalent power needed to supply more than 500,000 Saudi homes. (AFP)

NEWS DIGEST

C M Y K

REUTERSCHICAGO, JAN 1

As the United States marks more than six years without an increase in the federal minimum wage of $7.25 an hour, 14 states and several cities are moving for-ward with their own increases, with most set to start taking effect on Friday.

California and Massachusetts are highest among the states, both increasing from $9 to $10 an hour, according to an analysis by the National Conference of State Legislatures. At the low end is Arkansas, where the minimum wage is increasing from $7.50 to $8. The smallest increase, a nick-

el, comes in South Dakota, where the hourly minimum is now $8.55.

The increases come in the wake of a series of “living wage” protests across the country, including a November campaign in which thousands of protesters in 270 cities marched in support of a $15-an-hour minimum wage and union rights for fast food workers. Food service workers make up the largest group of minimum-wage earners, accord-ing to the Bureau of Labor Statistics.

With Friday’s increases, the new average minimum wage across the 14 affected states rises from $8.50 an hour to just over $9.

Several cities are going even

higher. Seattle is setting a sliding hourly minimum between $10.50 and $13 on Jan. 1, and Los Angeles and San Francisco are enacting similar increases in July, en route to $15 an hour phased in over six years.

Backers say a higher minimum wage helps combat poverty, but opponents worry about the poten-tial impact on employment and company profits.

In 2014, a Democratic-backed congressional proposal to

increase the federal minimum wage for the first time since 2009 to $10.10 stalled, as have subse-quent efforts by President Barack Obama. More recent proposals by some lawmakers call for a federal minimum wage of up to $15 an hour.

Alan Krueger, an economics professor at Princeton University and former chairman of Obama’s Council of Economic Advisers,

said a federal minimum wage of up to $12 an hour, phased in over five years or so, “would not have a noticeable effect on employ-ment.”

Some employers may cut jobs in response to a minimum-wage increase, Krueger said, while oth-ers may find hikes allow them to fill job vacancies and reduce turnover, lifting employment but lowering profits.

In recent years, an increasing number of states and municipali-ties have enacted their own wage floor policies. Currently, 29 states plus the District of Columbia and about two dozen cities and coun-ties have their minimum wage at levels higher than the federal

minimum. Many are now in the midst of multi-year phase-in plans that will ultimately take them to between $10 and $15 an hour. The 14 states where increas-es take effect on Friday are: Alaska, Arkansas, California, Colorado, Connecticut, Hawaii, Massachusetts, Michigan, Nebraska, New York, Rhode Island, South Dakota, Vermont and West Virginia.

The non-partisan Congressional Budget Office esti-mated 2014 federal proposal would have raised the wages of 16.5 million Americans and lifted 900,000 of them out of poverty but would have cost as many as 1 million jobs.

New year brings minimum wage hikes for AmericansP ROT EST PAYS O F F

The new average minimum wage across the 14 affected states rises from $8.50 an

hour to just over $9

Speedy passage of new Cooperative Act urgedPOST REPORTKATHMANDU, JAN 1

Stakeholders have called for a speedy passage of the new Cooperative Act, stressing that it should include merger policy to streamline the rapid-ly proliferating savings and credit cooperatives amid increased incidences of complex problems. They said that lack of proper regulation had led to an increase in financial crime.

Speaking at the fifth annual general meeting of the Nepal Cooperatives Journalists Society held on Friday, Deputy Prime Minister and Minister for Cooperatives and Poverty Alleviation Chitra Bahadur KC said that the act was close to being completed, and that it

would be sent to the Law Ministry for its examination.

“Once the act is endorsed, it will address the problems being faced currently like duplication of membership besides facilitating mergers,” he said. “Cooperatives are mushrooming in the country, and if the government does not act in time, the result can be severe as it can affect a large number of people.”

There are 33,000 coopera-tives operating in Nepal. Among them, 11,000 are sav-ings and credit cooperatives.

They hold more than Rs150 billion in deposits of the gen-eral public.

A report published by Nepal Rastra Bank shows that most of the savings and credit cooperatives are concentrated excessively in urban areas, and have invested heavily in real estate and other risky areas. The report shows that many cooperatives have not maintained effective manage-ment of assets and liabilities, which has posed a risk to long-term liquidity at a time when they have a low liquidity level.

The central bank also said that the credit-to-deposit ratio of cooperatives was high, and that the interest rates on deposits and loans were not being maintained as per its directive. Their credit-to-de-posit ratio is 92.3 percent, which means they have little liquidity available. These fac-tors could pose a risk to the savings of the general public.

The many cases of embez-zlement seen in the sector has been blamed on weak legal provisions. Although the government has moved to replace Cooperative Act 1992 with a new one more in tune with the times, progress has been very slow. Deputy Prime Minister KC said that more work needed to be done on the draft act, and that an inten-sive study of the problems in

the sector would be carried out before finalising it. A high-level commission formed to probe troubled cooperatives under Gauri Bahadur Karki two years ago has also urged the government to insert a provision for stricter punish-ment in the new act.

According to the commis-sion’s report, 150 troubled cooperatives had stolen Rs11 billion from 12,962 people.

Rishi Raj Ghimire, presi-dent of the Nepal Federation of Savings and Credit Cooperatives Union, said the problem in savings and credit cooperatives could be largely addressed by merging them.

“It will help avoid duplica-tion of membership too,” said Ghimire, adding that a sepa-rate act on savings and credit cooperatives was needed.

There are 33,000 cooperatives operating in Nepal. Among them, 11,000 are savings and credit

cooperatives. They hold more than Rs150 billion in deposits of the general public

Experts help divided Cyprus figure out economics of peaceASSOCIATED PRESSNICOSIA, CYPRUS, JAN 1

A peace accord cobbling Cyprus back together again after over four decades of eth-nic division is possible in 2016 and will bring opportunity and economic growth, offi-cials say. But sorting out the financial side of reunification will be a huge task.

The challenges of melding the economies of an interna-tionally recognized Greek Cypriot south that enjoys European Union membership and a breakaway Turkish Cypriot north that relies heav-ily on Turkey’s financial sup-port are coming into sharp relief as the rival leaders press on with tough negotia-tions into the new year.

That’s why experts from the International Monetary Fund and the World Bank have been recruited to help Nicos Anastasiades, the island’s Greek Cypriot president, and Turkish Cypriot leader Mustafa Akinci to navigate the economic labyrinth of a hoped-for reunification deal that both men say they want to clinch in 2016.

Cyprus was split in 1974 when Turkey invaded follow-

ing a coup aiming to unite the island with Greece. Only Turkey recognizes a Turkish Cypriot declaration of inde-pendence and continues to maintain around 35,000 troops in the north.

The experts this month made the first of many trips to Cyprus to sort out the mechan-ics of a unified economy before a peace deal is agreed. The benefits are clear: eco-nomic growth and rising wealth is needed to make a new federation work and help sell the deal to a long-divided and skeptical people.

“If the settlement talks

were conducted in a purely political fashion, without regard to the ensuing econom-ic implications of decisions made, or if these were relegat-ed to a later stage, significant opportunities would be lost for kick-starting the economy of a post-settlement Cyprus,” the United Nations spokesper-son’s office told The Associated Press. The person spoke only on condition of anonymity in line with department rules.

The experts will focus on issues including post-settle-ment public finances in a fed-erated Cyprus, keeping banks

stable, taxation and switching the north’s currency to the euro and applying EU law there. “It’s very symbolic that the IMF is involved for the first time,” said East Mediterranean University Provost Ahmet Sozen.

But as is often with Cyprus peace talks, optimism is tem-pered by reality.

A key challenge to a pact’s political and economic suc-cess is dealing with private property lost during the con-flict. In particular, experts need to figure out the cost of compensating property own-ers and where that money will come from.

“Well managed, a solution should be able to pay for itself in the long perspective, due to a higher growth rate, but it will still need external sup-port up front in order to be properly implemented,” the UN spokesperson said.

Most property in the north belongs to Greek Cypriots who fled in the face of advanc-ing Turkish troops. But Turkish Cypriots insist any peace accord should ensure that they hold on to the major-ity of property in their future administrative zone and remain the majority in popu-

lation as well. Sozen said Turkish Cypriots take the issue very seriously because it’s tied to their sense of secu-rity and that Akinci, the Turkish Cypriot leader, is “very firm on this.”

Turkish Cypriots see doling out cash for property as the primary way of dealing with the issue, as it would avoid displacing a large number of Turkish Cypriots who have since moved in.

There is no figure on how much this will cost, but the European Union and the U.S. and other countries have offered financial support, according to the U.N.

Many Greek Cypriots see the ‘compensation-first’ tack as curtailing their property rights and coming in direct conflict with EU principles that both sides say should be the bedrock of any agreement. Parliamentary Speaker Yiannakis Omirou blasted Turkish Cypriot posi-tions as “legalizing the inva-sion’s outcome.”

In a terse statement, Cypriot government spokes-man Nicos Christodoulides said Akinci’s remarks on the issue show that “there’s plen-ty of work yet to be done.”

Essar agrees to loan payback planASSOCIATED PRESSST. PAUL, JAN 1

Essar Steel Minnesota has agreed to repay the state loans tied to its taconite plant pro-ject on Minnesota’s Iron Range after the company was given a deadline to accept a repayment timeline, Gov. Mark Dayton said on Thursday.

Dayton said he was notified Wednesday that Essar Steel Minnesota and its parent com-pany, Essar Global Fund Ltd., have accepted his final offer for repayment of the state’s $66 million in loans. Last week Dayton gave the company until Dec. 30 to reach a repay-ment plan for state loans toward construction at the Nashwauk taconite plant site in northeastern Minnesota.

In a statement, Dayton called the project “tremen-dously important to the Iron Range, supporting more than 700 construction jobs and an expected 350 permanent jobs once the plant opens.” The governor said Essar Steel Minnesota CEO Madhu Vuppuluri’s willingness to accept the state’s final offer and repay the loan “is an important step to move this project forward.”

Essar Steel Minnesota said

Thursday it has told Dayton that the company accepts the state’s proposed repayment terms and is pleased that an agreement was reached.

“With his issue resolved, Essar will continue to focus its efforts on keeping pay-ments flowing to our contrac-tors and vendors and on mov-ing forward again with this historic project,” Essar said in a statement. The offer requires Essar Steel to start making payments on the loan in February 2016, repaying $10 million to the state by the end of March 2016.

The remaining $56 million will then be repaid in quarter-ly payments, starting in 2017 and ending in 2020. If Essar sells its ownership interest in the project, it would have to pay its remaining debt in full.

Essar has struggled to open the proposed $1.8 billion iron ore processing plant. The offer also requires the compa-ny to notify the state of the status of its payments to ven-dors each quarter.

Nawaz launches Voluntary Tax Compliance plan

DAWNISLAMABAD, JAN 1

Prime Minister Nawaz Sharif urged the business communi-ty to pay taxes transparently for greater development and prosperity, through the launch of the Voluntary Tax Compliance scheme.

The compliance scheme launched here Friday aims to register non-filer traders and regulate the undocumented economy. Nawaz explained to traders that collecting more taxes can help build a strong-er economy, reduce unemploy-ment and poverty, attract more investment and fortify the country in the fight against terrorism.

The premier told traders the government has taken steps towards resolving issues such as the restoration of law and order in the country and counter-terrorism.

“Peace in Karachi is neces-sary for peace in the entire country,” he said. “The gov-ernment is taking steps to reform sectors including health, education and road links as well.”

Nawaz said the situation in the country has improved in comparison with the state of affairs 3-4 years ago, Radio Pakistan reported. “Economic reforms have yielded positive results and economic prosper-ity in the country will change the fate of the nation,” he claimed.

Traders play an integral

role in the development of economy, he said, adding that the government would pro-vide support to traders in every way possible.

“The PML-N led govern-ment has stepped forward to deal with internal and exter-nal challenges while policies are being devised after consul-tation with the relevant stake-holders in this regard” in order to steer the country towards progress, Nawaz claimed.

The government believes in resolving issues with mutual understanding and consulta-tion, he told members of the business community. “This spirit will take the country forth on the path towards pro-gress and prosperity.”

Finance Minister Ishaq Dar on Monday directed the Federal Board of Revenue (FBR) to further improve the draft Voluntary Tax Compliance scheme in order to attract maximum number of new taxpayers and achieve the aim of broadening the tax base.

With the start of the new year, provisional figures released on Tuesday showed the FBR’s revenue collection exceeded the collection target by Rs20bn to Rs770 billion for the second quarter (October-December) of the fiscal year.

The surpassing of target is unprecedented because in the past few years the FBR has never been able to achieve revised targets.

falling revenue

n A night view of the Venetian Macao Resort Hotel (left) and Galaxy Macau resort are seen in Macau, China on Thursday. Gambling revenue in the Chinese territory of Macau fell for the second year in a row in 2015 as a prolonged anti-corruption campaign and slowing economic growth battered the world’s largest casino hub. REUTERS

Essar has struggled to open the proposed

$1.8 billion iron ore processing plant

n Nawaz Sharif

n A file photo shows a view of the Bank of Cyprus UK in Charlotte Street, central London. AP/RSS

money worldIII thekathmandupost | Saturday, January 2, 2016

Oil ends 2015 battered by supply glutNEW YORK: Oil prices pared losses on Thursday but ended 2015 sharply lower as the “black gold” was battered by pro-longed global oversupply and a slowdown in ener-gy-hungry China’s econ-omy. North Sea Brent, the European benchmark for oil, dropped almost 35 percent over the year, while the US benchmark West Texas Intermediate (WTI) fell 30 percent. “With Brent crude oil hovering near 11-year lows and WTI not faring all that much better, the markets are ending the year on a somber note, consistent with what we see as ongoing physical oversupply,” said Tim Evans of Citi Futures. The key futures con-tracts finished Thursday with modest daily gains. WTI for delivery in February rose 44 cents to close at $37.04 on the New York Mercantile Exchange. In London, Brent for February deliv-ery rose 82 cents to $37.28 a barrel. (AFP)

China new home prices up in DecBEIJING: China’s new home prices increased in December for the fifth straight month, a survey showed Friday, following a series of stimulus measures aimed at boost-ing lending. The gains come as authorities have vowed to stabilise China’s property mar-ket—a key pillar of the world’s second-largest economy. The average price of a new home in China’s 100 major cities rose 0.74 percent month-on-month in December to 10,980 yuan ($1,686) per square metre, the China Index Academy (CIA) said in a report, marking a pick-up from November’s 0.46 percent rise. On a year-on-year basis, prices increased 4.15 percent. China’s property sector has come under pressure in the past two years as new buyers were priced out of the market while the economy falters. Home sales fell 7.8 percent in value in 2014. (AFP)

Dow, S&P 500 in red for 2015NEW YORK: The Dow Jones Industrial Average and the S&P 500 racked up their worst annual performance in seven years Thursday after a sell-off in the final Wall Street session of 2015. The S&P 500 fell 0.9 per-cent to 2,043.94, leaving the broad-based gauge of US stocks down 0.7 per-cent for the year, its first loss since 2011. The blue-chip Dow dropped 1.0 percent in the session to 17,425.03, taking its annu-al loss to 2.2 percent. But the tech-rich Nasdaq Composite Index proved a bright spot, ending 2015 with a gain of 5.7 percent despite dropping 1.2 per-cent to 5,007.41 in the last day of trade. Analysts said the declines in Thursday’s session should be taken with a grain of salt due to light trading volume ahead of the market’s closure for the New Year holiday and the incentive to sell stocks to book losses for tax purposes. (AFP)

NEWS DIGEST

REUTERSSINGAPORE, JAN 1

A decade-old commodity boom came crashing to an end in 2015, hurting energy and mining com-panies and punishing prices as China’s industrial rise and appetite for raw materials slowed. The outlook for 2016 is not much better.

The Thomson Reuters Core Commodity Index fell by a quar-ter over the year to hit its lowest level since 2002 in December, as commodities ranging from iron ore to oil took a battering.

“The chances of an optimistic 2016 are bleak,” Mark To, head of research at Hong Kong’s Wing Fung Financial Group, said. “Slowing economic growth and structural reforms in China might contribute to decreased

demand for commodities.”Further interest rate hikes by

the US Federal Reserve will add to the pain by strengthening the dollar and making many com-modities more expensive for international buyers, To said.

The smallest, niche agricultur-al commodities were the only bright spots in sight as weather and disease roiled crops, raising concerns about tightening sup-plies and boosting cocoa, cotton and orange juice.

Among industrial commodi-ties, iron ore prices tumbled 40 percent this year due to global oversupply and shrinking Chinese steel demand, marking a third year of losses. The rout is seen stretching into next year.

In coal, thermal prices fell almost a third in 2015, hurt by waning Chinese demand and the

rise of renewable energy, with Goldman Sachs and the International Energy Agency say-ing China’s coal demand has peaked.

Both iron ore and coal have shed around 80 percent in value since their respective historical

peaks in 2011 and 2008.The downturn has hammered

mining majors like BHP Billiton, Rio Tinto and Anglo American, as well as merchants like Asia’s Noble Group and Europe’s Glencore, forcing them to slash jobs and sell assets.

Benchmark oil and natural gas prices have also slumped, down a third this year and two thirds since the rout began in 2014, as ballooning supply met slowing demand.

“Headwinds (are) growing for 2016 oil,” Morgan Stanley said this week, citing increases in global supply and a slowdown in demand, reflecting a market con-sensus that meaningfully higher prices are not expected before late 2016.

The outlook is expected to trig-ger a fight for survival across the supply chain, including shippers and private oil drillers, while oil-dependent countries from Venezuela and Russia to the Middle East face smaller revenues.

Prices of industrial metals also plummeted this year. Copper and

zinc shed a quarter of their value, and nickel collapsed more than 40 percent, hammered by slowing growth in top consumer China.

Some investors are hoping base metals are over the worst, but some fund managers and ana-lysts expect further losses next year before miners make signifi-cant output cuts to offset slowing demand growth.

“We’ve come a long way, but 2016 will probably be another lost year for commodities, though we should see a bottom,” said Tiberius Asset Management Chief Executive Christoph Eibl.

“The supply overhang needs to be corrected, which will be pain-ful because that means giving up market share and restructuring,” Eibl added. “I think this will hap-pen next year.”

Gold, however, is showing no sign of recovery after sliding to a near six-year low earlier in December.

The metal closed the year down about 10 percent for its third straight annual loss, on a strong-er dollar and prospects that high-er US interest rates will hurt demand for non-interest-paying bullion.

Its outlook heading into next year does not look much better, with several traders and broker-ages predicting a drop in prices to $1,000 an ounce or below early in 2016, before firming in the sec-ond half.

Gold has largely been influ-enced by US data and the Fed’s monetary policy. Even if the Fed rate hike path next year is slow, gold would take a hit, said traders.

Ending of China’s super-boom spells pain with no end seen yetR I S E A N D FA L L

n Cargo trucks drive through a container pool at a seaport in Qingdao in eastern China’s Shandong province on Thursday. AP/RSS

C M Y K

EU-Ukraine trade deal comes into forceAGENCE FRANCE-PRESSE KIEV, JAN 1

Ukraine’s free-trade deal with the EU comes into effect Friday, coinciding with the start of Moscow’s food embar-go against Kiev that will force the impoverished former Soviet republic to revisit its economic model.

The free-trade accord is part of the broader EU Association Agreement—signed at the end of June 2014—and stands at the heart of the drastic deterioration of Ukraine’s relations with Russia, furious at seeing its Soviet-era satellite turn to the West.

Ukraine, whose market has been traditionally oriented toward Russia, will now have to turn itself toward the European market and abide by its rules.

“The agreement will con-tribute to the modernisation and diversification of the Ukrainian economy and will create additional incentives for reform,” the European Commission said in a state-ment on Thursday.

Brussels also said the deal would help Ukraine improve its business climate and attract foreign investment, a view shared by Yegor Perelygin, an analyst at UniCredit bank.

The road to Ukraine’s adop-tion of the deal has been pep-pered with obstacles.

In November 2013,

Ukraine’s then pro-Kremlin president Viktor Yanukovych rejected the association agree-ment, triggering pro-Europe-an protests that led to his downfall and eventually to the armed conflict in eastern Ukraine, which has left more than 9,000 people dead.

Fearing the deal could see its market flooded with European goods, Russia has taken retaliatory measures, suspending its free-trade agreement with Ukraine and banning the import of Ukrainian food starting on Friday.

Prime Minister Arseny

Yatsenyuk has put the cost of Moscow’s measures to his country at some $600 million.

President Petro Poroshenko admitted earlier this month that Russia’s retaliatory move would cause “damage” to Ukraine’s economy but said he was “ready to pay the price” and press on with efforts to join a European Union free-trade zone.

He blasted the embargo in his New Year address, saying Moscow was trying to “eco-nomically strangle” Ukraine.

“Moscow closing its market to Ukrainian merchandise, a powerful economic attack, is

another part of the war (...) against us,” Poroshenko said.

Kiev has vowed to strike back with its own measures and is expected to announce a list of banned Russian prod-ucts in the near future.

Ukraine mostly exported agricultural products, vegeta-bles, fruit, dairy and sweets to Russia, with the countries’ trade ties shrinking by 70 per-cent compared to 2011, accord-ing to Russia’s deputy minis-ter of economic development Alexei Likhachev.

“This (the Russian embar-go) will of course be a prob-lem for Ukrainian food pro-

ducers, but let’s not forget that many of them have already entirely or partially reorient-ed their production toward alternative markets: the EU, Africa, Kazakhstan, China, the Middle East,” said UniCredit analyst Perelygin.

The impact of European products flooding onto the Ukrainian market remains unclear according to invest-ment specialist Olexandra Brovko, with other analysts saying the effects of the deal will only be tangible in the long term given the current economic slowdown in Europe.

“It’s difficult to predict how competition will be estab-lished and what consequences this will have on Ukrainian producers,” said Brovko, who works for a Ukrainian NGO that aims to facilitate busi-ness and investment in the country.

Brovko added that the arrival of European products on Ukraine’s would not neces-sarily dampen demand for Ukrainian goods.

“It’s possible that certain European products will find buyers and find a niche on the market where there are no competitors,” she said.

According to economist Olexandr Valchyshen of Investment Capital Ukraine, the free-trade agreement with the EU will boost investment in the country given the “very competitive” cost of Ukrainian labour.

Russia announces lawsuit against UkraineMOSCOW: Russia’s finance ministry said Friday it was suing Ukraine for defaulting on a $3-billion debt to Moscow, following an order by President Vladimir Putin. Kiev is “in a state of default” regarding its obli-gations toward Moscow and legal proceedings would ensue, the ministry said.

“Russia’s finance minis-try (...) has initiated proce-dures required for an imme-diate lawsuit against Ukraine,” the statement said, adding that the lawsuit would be heard in a British court.

Ukraine announced last month it would not make the

payment on its debt to Moscow after Putin vowed to sue Kiev if it failed to pay by the end of 2015.

The debt stems back to 2013 when Russia loaned $3 billion to the Kremlin-backed president Viktor Yanukovych, before pro-Eu-ropean protests that led to his downfall.

Ukrainian authorities say it is not a sovereign loan by one state to another but rather a transaction made via the financial markets that is subject to terms agreed with other creditors.

Kiev reached a restructur-ing deal in August with its private creditors, including

major banks and investment funds, which agreed to reduce their claims by 20 percent.

Moscow however main-tains that the loan cannot be considered private debt and has refused such conditions.

The Russian government instead offered to spread out the payment over three years, an offer Kiev rejected.

“Ukraine preferred defaulting on its debt obliga-tions to holding honest nego-tiations,” the finance minis-try said, adding that the legal proceedings “do not preclude constructive dia-logue to reach an acceptable settlement of the debt.” (AFP)

Non-subsidised LPG rates hiked, jet fuel cut

INDO-ASIAN NEWS SERVICE NEW DELHI, JAN 1

State run-Indian Oil Corp (IOC) hiked prices of non-sub-sidised LPG, or cooking gas, cylinders by around Rs 50, effective from Friday.

Allowing for local levies, the market price of a non-sub-sidised liquefied petroleum gas cylinder of 14.4 kg is now Rs 657.50 in Delhi, Rs 686.50 in Kolkata, Rs671 in Mumbai and Rs671.50 in Chennai.

This is the second such suc-cessive hike in less than two months. Prices were last raised in December by nearly Rs60 a cylinder.

Also from Friday, cooking gas consumers with taxable income of more than Rs10 lakh per annum will no longer get benefit of the subsidy on gas cylinders, the government has announced.

To be applicable from the New Year, the directive would be effected “initially on a self-declaration basis”, a petroleum ministry statement

said. Meanwhile, with the Indian basket of crude oils again in free fall towards the $30 a barrel mark, prices of aviation turbine fuel (ATF), or jet fuel, were reduced by a steep 10 percent effective from Friday to Rs39,892.32 per kl in Delhi from Rs44,320.32 per kl.

This caused airlines’ stocks to hit fresh record highs in intra-day trade on hopes of a boost in companies’ profitabil-ity. IOC has also announced cuts in transport fuel prices effective from Friday, with pet-rol prices per litre being reduced by Rs0.63 and diesel by Rs1.06, both at Delhi, with corresponding price revision in other states. Petrol per litre now costs Rs59.35 in Delhi, Rs65.12 in Kolkata, Rs66.40 in Mumbai and Rs59.77 in Chennai. The price of diesel per litre from January 1 is Rs45.03 in Delhi, Rs48.80 in Kolkata and Rs52.16 in Mumbai. The Indian basket of crude oils closed trading on Thursday at $32.90 for a barrel of nearly 160 litres.

South Korea’s exports tumble 13.8pc in DecXINHUASEOUL, JAN 1

South Korea’s exports tum-bled 13.8 percent in December from a year earlier due to soft demand for ships and lower prices of oil products and chips, a government report showed Friday.

Exports, which account for about half of the economy, came in at 42.6 billion US dol-lars, down 13.8 percent from a year earlier, according to the Ministry of Trade, Industry and Energy.

Imports declined at a faster pace of 19.2 percent in December from a year earlier to reach 35.5 billion US dollars.

Helped by faster fall in

imports than exports, trade surplus was 7.2 billion dollars in December, keeping a surplus trend for 47 months in a row.

Ship exports plunged 35.1 percent, and those for oil prod-ucts and semiconductors dropped 25.6 percent and 17.1 percent due to lower product prices.

Shipments of consumer electronics, cars, textiles and

general machinery declined, but cosmetics exports increased 25.3 percent. Exports of telecommunica-tion devices, including smart-phones, gained 7.6 percent.

By region, exports to the United States and the European Union slumped 4.7 percent and 7.6 percent, and those to China, South Korea’s largest trading partner, tum-bled 16.7 percent.

Exports to Vietnam rose 5.2 percent, but those to Japan and the Middle East posted a double-digit reduction.

Raw material imports plunged 27.6 percent on lower crude oil prices, and imports of capital and consumer goods slipped 17.1 percent and 9 percent respectively.

welcoming new year

n Fireworks show marking the New Year’s Day of 2016 is held at Victoria Harbour in south China’s Hong Kong, on Friday. XINHUA

Exports, which account for about half of the economy, came in at 42.6 billion US dollars, down 13.8 percent

from a year earlier

US stocks end 2015 mostly flatASSOCIATED PRESS NEW YORK, JAN 1

The US stock market took investors for a wild ride in 2015, but in the end it was a trip to nowhere.

Despite veering between record highs and the steepest dive in four years, the stock market ended the year essen-tially flat, delivering the weak-est performance since 2008. That means if you invested in a fund that tracks the Standard & Poor’s 500 index, you have little to show for the past 12 months. “It’s been mildly disappointing,” said Michael Baele, managing director at the Private Client Reserve at US Bank. “Any

time that you come in toward the end of the year close to flat you always want a little bit more.” Markets overseas had their own challenges.

China’s market surged in the late spring and then fell sharply in the summer despite several efforts by China’s gov-ernment to stem the decline. The Shanghai Composite Index ended the year up 9.4 percent. Japan’s market fin-ished flat after that country’s government stepped up its economic stimulus program. In Europe, Britain’s market ended the year down about 5 percent, while indexes in Germany and France turned in healthy gains of 9.6 percent and 8.5 percent, respectively.

In the US, the market got 2015 off to a slow start as investors worried about fall-ing crude oil prices, flat earn-ings growth and when and how quickly the Federal

Reserve would begin raising interest rates.

By May, the major indexes were hitting new highs. Even the Nasdaq bested its dot-com high-water mark set in March

2000. The market didn’t stay in milestone territory for long, though. Worries about slow-ing growth in China and else-where gave reason for the Fed to pause and for investors to fret, even as the US economy continued to create jobs and consumer confidence improved. Weak company earnings, largely due to the strong dollar and falling oil prices, didn’t do much for the market’s confidence.

By August, the anxiety had deepened and the market dropped sharply. The three major US indexes went into a correction, commonly defined as a loss of at least 10 percent from a recent peak, for the first time in four years.

Rupee ends flat at 66.14 against dollarPRESS TRUST OF INDIANEW DELHI, JAN 1

Starting the New Year on a steady note, the rupee recov-ered from initial losses against the US dollar to close at 66.14 on fresh selling of the American currency by banks and exporters on fresh foreign capital inflows into equity market.

The rupee resumed lower at 66.20 as against overnight closing level of 66.15 at the Interbank Foreign Exchange (Forex) market and dropped further to 66.26 on initial dol-lar demand from banks and importers. However, it recov-

ered from initial losses to 66.13 before finishing at 66.14, showing a mere gain of one paise or 0.02 per cent. The rupee gained 25 paise, or 0.38 per cent, in two days.

The domestic currency moved in a range of 66.13 and 66.26 during the day. Globally, the US dollar ended higher against its major rivals yester-day amid lacklustre trade due to holiday season.

Foreign portfolio investors (FPIs) pumped in USD 166.53 million into equity market yesterday, as per Sebi data. Meanwhile, the benchmark BSE Sensex moved up further by 43.36 points.

n A file photo shows traders working on the floor of the New York Stock Exchange. AP/RSS

moneybazaar IVSaturday, January 2, 2016 | thekathmandupost

Laxmi Bank CEO Khaling in NBAKATHMANDU: Laxmi Bank CEO Sudesh Khaling has been elected as a member of Nepal Bankers’ Association (NBA). The annual general meeting of the NBA on Tuesday elected Kishore Maharjan as its new vice president and seven new members. The others member of the NBA are Sanima Bank CEO Bhuvan Dahal, Nepal Bangaldesh Bank CEO Gyanendra Dhungana, Everest Bank CEO AK Ahluwalia, Agriculture Bank

CEO Lila Prakash Sitaula, Nepal Investment Bank CEO Jyoti Prakash Pandey and Prabhu Bank CEO Ashok Sherchan. (PR)

Maruti Suzuki’s Dec sales up 8.5pcMUMBAI: Leading passenger automobile manufacturer Maruti Suzuki on Friday reported an 8.5 percent rise in its total sales for last month. The company sold 119,149 units during the month under review—up from an off-take of 109,791 units in the corresponding month of 2014. The automobile manufacturer’s sales during November rose by 9.7 percent year-on-year to 120,824 units. Domestic sales during the month under review increased by 13.5 percent at 111,333 units from 98,109 units sold dur-ing December 2014. However, exports plunged by 33.1 percent in the month under review with 7,816 units being shipped out -- down from 11,682 units of the company sold abroad during the corresponding month of 2014. The sales of passenger car segment surged 11.6 percent to 91,043 units sold during last month—from 81,564 units in the like period of 2014. The company’s passenger car seg-ment comprises of brands like Alto, WagonR, Swift, Ritz, Celerio, Baleno, Dzire, Dzire Tour, SX4 and Ciaz. (IANS)

Hyundai’s Dec sales up 8pcNEW DELHI: Automobile manufacturer Hyundai Motor India on Friday reported an overall sales growth of eight percent for December 2015. According to the company, its total sales for the last month of the last year stood to 64,135 units—up from 59,391 units sold during the corre-sponding month of 2014. The company’s domestic sales in the month under review grew by 28.8 percent to 41,861 units, from 32,504 units sold during December 2014. However, the company’s exports during last month plunged by 17.2 percent to 22,274 units from 26,887 units shipped out in the corresponding period of 2014. “With strong performance of Grand i10, Elite i20 and Creta in December, Hyundai domestic volume grew by 28.8 per-cent with 41,861 units,” said Rakesh Srivastava, senior vice president for sales and marketing with Hyundai Motor India. In addition, the company reported a cumu-lative sales growth of 15.7 percent for 2015. (IANS)

Euro, pound sag on final day of yearNEW YORK: The euro and pound sagged on the final day of the year Thursday ahead of a long holiday weekend and next week’s gush of US economic data. After holding steady against the greenback for more than a week, the euro lost 0.6 percent at $1.0855 around 2200 GMT, amid mounting analyst predictions that the US currency will strengthen further in early 2016. The euro also slipped 0.8 percent on the yen to 130.59 yen. The pound, which has steadily fallen since early November on rising doubts that the Bank of England will begin tightening monetary policy in the near future, lost another 0.5 percent at $1.4737. That nevertheless was still nearly two cents high-er than the year’s low struck in April. Markets are “look-ing ahead to 2016 when the Federal Reserve has penciled in a series of dollar-bolstering interest rate rises,” said forex market analyst Joe Manimbo of Western Union Business Solutions. (AFP)

Honda confirms 9 death linked to Takata airbagWASHINGTON: Honda Motor Co confirmed on Thursday that a Takata airbag inflator ruptured in a July crash of a Honda Accord and likely led to the death of the young driver, the ninth death in the world linked to the faulty inflators. The death, first reported by US auto safety authorities last week, is the eighth in the United States and the first since April tied to the inflators that have been recalled in tens of million of vehicles worldwide. After an inspection of vehicle components in coopera-tion with regulators, Honda said it “confirmed that the Takata driver’s front airbag inflator ruptured” and “inju-ries related to this airbag inflator rupture likely resulted in the tragic death of the underage driver.” The US National Highway Traffic Safety Administration said last week the death took place in July in a recalled used 2001 Honda Accord coupe near Pittsburgh. The unidenti-fied teen-aged driver was hospitalized after a Takata air-bag ruptured and died several days later. (REUTERS)

Gold heads for third annual loss LONDON: Gold was steady on Thursday but poised to mark its third straight annual loss, ahead of what is like-ly to be another tough year with the prospect of higher US interest rates and dollar strength. Largely influenced by US monetary policy and dollar flows, the price of gold has fallen about 10 percent in 2015 as some investors sold the precious metal to buy assets that pay a yield, such as equities. Spot gold was down 0.1 percent at $1,059.62 an ounce by 1238 GMT, during the last trading session of the year. Volumes were thin ahead of the New Year holiday on Friday. Prices were set to end 2015 close to a near-six-year low of $1,045.85 hit earlier in December. “The key factor for gold remains the strong dollar and that ulti-mately trumps all other issues including the economy and the geopolitics,” said Ross Norman, chief executive of bullion broker Sharps Pixley. The dollar was on track for a 9 percent gain this year against a basket of major currencies, making dollar-denominated gold more expen-sive for holders of other currencies. (REUTERS)

BIZLINE

MICHAEL D SHEAR

There was never any doubt that I would buy an Apple Watch on the day it was released. I’m a White House correspondent for The New York Times, but I’m also that early-adopter guy.

Buying the watch has led to the inevitable questions from friends and family: “What do you think? Should I get one of those?” My search for an answer reminds me of a similar period nearly a decade ago, in the months after I stood in line for several hours at an Apple Store in Arlington, Va., to be among the first to spend $599 on the original iPhone. The Apple employees cheered as I emerged with the phone.

The next day, I was on a Southwest flight to New Hampshire to cover Fred Thompson, the late actor and

senator, who was then running for president. As I sat in my aisle seat, playing with the phone, a crowd formed. First the flight attendants. Then pas-sengers. They all wanted to see the crazy new device in action.

But back then, it was hard to recommend to my fellow report-ers on the campaign trail that they ditch their BlackBerrys. The iPhone’s on-screen key-board made typing a clunky business.

The phone couldn’t connect with most workplace email sys-tems. Cell service (limited to AT&T) was slow and flaky at best. Battery life was short. There was no App Store. The iPhone didn’t even have a “cut and paste” feature.

There was just a sense—largely unrealized at the time—that somehow this device was the future, while using my

thumb to scroll through a black-and-white list of emails on my BlackBerry was the past. Surfing the web, reading email, listening to music, checking the weather and stocks—all on one device. It was revolutionary.

When colleagues asked, I was honest about the limitations even as I gushed about the tech-nological potential. Most of my friends listened politely, tried to type on the screen with their

thumbs, and then stuck with the BlackBerry. The watch feels as if it is at a similar place. For the same $599, which gets you a model with a 42-millimeter stainless-steel case, the Apple Watch is a slave to a user’s iPhone, relying on the larger device for processing and com-munications. It has no GPS or cellular capability. It can run apps, but slowly. And without any keyboard, it requires voice

dictation, which is still far from perfect. In most cases, opening an app on the iPhone is still a far better experience.

Like the original iPhone, the watch also feels like a physical compromise. The case is bigger and bulkier than the ideal device you would want to strap to your wrist.

And while battery life is amazing for a device this small—routinely almost 24 hours on a single charge—it still requires that I remember to pop the watch onto a charger every night. And yet, after almost eight months, the Apple Watch feels like the future to me.

More than anything else, the watch has changed the way I communicate via email and text messages. Using Apple’s VIP feature, I direct all of the most important messages to my watch, which alerts me with a

subtle tap on my wrist or a soft ding. I ignore most after a quick glance. (Sorry, Mom.) Many get a quick “O.K.” or “Sounds good.” I pull out my phone only for the ones I need to respond to at length.

The same is true for phone calls, which appear on my watch while my phone remains tucked away in my pocket, or still at my desk on the other side of the office. It’s like Caller ID for my wrist.

The watch has also become my first stop for personal sched-uling. I use it to check the weather and to see at a glance what my next appointment is. My OpenTable app taps my wrist when a restaurant reser-vation is coming up. The eBay app lets me know when I’ve won, or lost, an auction—no phone required.

—© 2016 The New York Times

With taps on the wrist, Apple watch points to the futureF U T U R E O F T EC H N O LO GY

C M Y K

traditional fruits

n A seller dressed as a Snow Maiden, waits for customers to buy tangerines, traditional fruit for the New Year in Russia, at GUM Department Store in Red Square in Moscow, Russia, on Thursday. For most Russians, it’s not New Year’s without a Salad Olivier, a dish meant to augur prosperity. AP/RSS

MARKET WATCH

Vegetables Unit Price (Rs)

Fruits Unit Price (Rs)

Red Potato Kg Rs 32White Potato Kg Rs 29Onion (Indian) Kg Rs 70Tomato Small Kg Rs 70Tomato Big Kg Rs 60Squash Kg Rs 33Cabbage Kg Rs 50Egg Plant Long Kg Rs 50Cow Pea Kg Rs 75

DAILY COMMODITIES

Apple Kg Rs 150Pomegranate Kg Rs 250Mango Kg Rs 120Water Melon Kg Rs 75Orange Kg Rs 90 Pineapple 1Pc Rs 95Cucumber Kg Rs 95Pear Kg Rs 205Papaya Kg Rs 75Banana Doz Rs110Lime 100 Pcs Rs 475

Pokhreli Rice Kg Rs 65Jeera Mashino Rice Kg Rs 65Indian Bashmati Rice Kg Rs 110Mansuli Rice Kg Rs 55Sona Rice Kg Rs 50 Beaten Rice (Taichin) Kg Rs 120Beaten Rice Kg Rs 70Big Mas Kg Rs 260Small Mas Kg Rs 200Big Mung Kg Rs 200Musuro (No 1) Kg Rs 210Musuro (No 2) Kg Rs 180Rahar Kg Rs 235Chana (Big) Kg Rs 140Chana (Small) Kg Rs 120Chilli Powder Kg Rs 275

Commodities Unit Price (Rs)

INT’L MARKET

Energy Price (US$) %Change

Agriculture Price (US$) %Change

Industrial Metals Price (US$) %Change

Copper Future (Lb) 213.5 -0.54

Precious Metals Price (US$) %Change

Gold 100 Oz Futr (T Oz) 1,060.20 0.04Silver Future (T Oz) 13.8 -0.28

Cocoa Future (Mt) 3,211.00 -0.56Coffee ‘C’ Future (Lb) 118.2 -0.51Corn Future (Bu) 358.75 -0.07Cotton No.2 Futr (Lb) 63.28 -1.08Rough Rice (Cbot) (Cwt) 11.84 0.17Soybean Future (Bu) 864.25 -0.69Soybean Meal Futr (T) 265.5 -0.78Soybean Oil Futr (Lb) 30.75 -1.03Sugar #11 (World) (Lb) 15.24 0.59Wheat Future(Cbt) (Bu) 470 0.05

RETAIL PRICE

Brent Crude Futr (Bbl) 37.28 2.25Gas Oil Fut (Ice) (Mt) 334.25 -1.40Gasoline Rbob Fut (Gal) 127.1 2.20Natural Gas Futr (Mmbtu) 2.34 5.56

GASOLINE WATCH

BULLION

SOURCE: FENEGOSIDA

Rs 48,000

Rs 47,750

Rs 675

E-commerce biz to cross $38b markINDO-ASIAN NEWS SERVICE NEW DELHI, JAN 1

Helped by increasing internet, mobile penetration and growing acceptability of online payments, e-commerce market in India is likely to touch $38 billion mark in 2016, a study revealed here on Friday.

The study done by the industry lobby Associated Chambers of Commerce (Assocham) stated it is likely that there will be a huge 67 percent jump in 2016 over the $23 billion revenue for 2015.

The industry has witnessed a growth of 52 percent over 2015 and has emerged as one of the fastest growing sectors.“Increas-ing internet and mobile penetra-tion, growing acceptability of online payments and favorable

demographics has provided the e-commerce sector in India the unique opportunity to companies connect with their customers,” the Assocham paper said.

Releasing the paper, Assocham secretary general D.S. Rawat said India’s e-commerce market was worth about $3.8 billion in 2009, it went up to $17 billion in 2014 and to $23 billion in 2015m, and is expected to touch a whopping $38 billion mark by 2016.

On the other hand, mobile com-merce (m-commerce) is growing rapidly as a stable and secure supplement to the e-commerce industry. Shopping online through

smart phones is proving to be a game changer, and industry lead-ers believe that m-commerce could contribute up to 70 percent of their total revenues.

The paper revealed that Mumbaikars have left behind all other cities in India shopping online in 2015. While Delhiites rank second, Ahemdabadis rank third. Bengaluru residents rank fourth and Kolkata people rank fifth in their preference for online shopping in 2015.

“The customer is connected 24x7 through their smart phones, tablets and other mobile devices which is leading to a gradual evo-

lution of e-commerce into mobile commerce and there is an issue of convenience which also leads to impulsive buying,” Rawat added.

The most important contribut-ing factor to the rapid growth of digital commerce in India is the increase in the use of smart-phones. Mobiles and mobile accessories have taken up the maximum share of the digital commerce market in India, added the Assocham paper. Almost 45 percent of online shoppers report-edly preferred cash on delivery mode of payment over credit cards (16 percent) and debit cards (21 percent). Among the age seg-ments, 18-25 age group has been the fastest growing segment online with user growth being contributed by both male and female segments, the study added.

Agreement reached to end syndicate in DangDURGALAL KCDANG, JAN 1

Rapti Zone Public Bus Transport Entrepreneurs’ Committee has finally agreed to end syndicate system in transport system, pav-ing the way for new entrepre-neurs to enter the business.

The move will enable Malika Kalika Transport Private Limited (MKTPL), a new player, to intro-duce deluxe buses on Dang-Kathmandu route.

The new transport committee said that it would start deluxe bus service on Dang-Kathmandu route from Saturday.

During a meeting held at the District Administration Office on Friday, the Rapti transport com-mittee committed that it would not obstruct services provided by other operators who are not its members.

Earlier, the committee had warned of obstructing any bus service operated without its approval.

Although the Supreme Court has already decided against the

syndicate system terming it ille-gal, the government has failed to implement the court order.

“Nobody will now obstruct the legally operated transport sys-tem,” said Superintendent of Police Kuber Kadayat, Chief of Dang District Police Office. “An agreement between the two trans-port committees has been reached not to obstruct each other’s opera-tions,” he said. Malika Kalika Transport’s General Secretary Gehendra Oli said that Chief District Officer Deepak Kafle assured them during the discus-sion that those going against the

law would face action. On Wednesday, Malika Kalika’ buses were targeted with stones when it brought buses under police escorting. Oli said that their five buses were damaged in Lamahi, Gogli and Ghorahi.

The new transport committee has kept its buses at an Armed Police Force base camp in Tulsipur, Dang.

Oli said that they would operate one night bus from Dang to Kathmandu every day from Saturday onwards.

Earlier, when Malika Kalika announced that it was going to

operate deluxe buses, the Rapti transport committee had warned that it would not allow the compa-ny to operate its buses.

Oli himself was attacked and the Malika Kalika’s office and ticket counter in Tulsipur was vandalised.

The Rapti transport committee had been obstructing the opera-tion of buses from new companies for long. As a result, people were forced to travel on old buses with bad services.

New entrepreneurs have entered the business with deluxe buses and improved services.

After Malika Kalika brought new busses with improved facili-ties, the Rapti transport commit-tee had started operating AC buses. Currently, as many as 574 vehicles operate under Rapti Transport Entrepreneurs’ Committee. In Rapti zone, there are 14 transport committees, nine of them are related to passenger service and five related to cargo service. Now, one transport com-mittee each has been registered in Dang, Rukum and Salyan.

The industry has witnessed a growth of 52 percent over 2015 and has emerged as one of the fastest growing sectors

n Khaling

Shopping online through smart phones is proving to be a game changer