Business

UK oil firm BP said it would cut 4,000 jobs globally, 600 of which will be from its North Sea operations.

It comes as profits continue to suffer as a result of a 70% collapse in oil prices leading to a big cutback in investment across the oil industry.

The North Sea job cuts are expected to take place over a two-year period.

Meanwhile, Brazil's oil giant, Petrobras, announced a massive scale back of its investment plans thanks to the lower commodity price.

Petrobras will reduce investment by $32bn, 25%, over the next four years, its third cut in six months.

The Brazilian giant said it was adapting to a new economic outlook. Its problems have been exacerbated by a fall of a third in the value of Brazil's real, which makes servicing Petrobras's mammoth dollar debts that much more expensive.

BP said all the job losses would occur in its oil exploration and drilling business.

"We want to simplify structure and reduce costs without compromising safety. Globally, we expect the headcount in upstream to be below 20,000 by the end of the year," a company spokesman said.

The job losses amount to around 5% of BP's total global workforce of 80,000. BP currently employs around 3,000 people in the UK.

'Challenging' environment

BP said it remained committed to the North Sea and would invest about $4bn (£2.7bn) there this year.

But in a statement, the oil firm said given the "challenges" of operating in the North Sea and in "toughening market conditions" it needed to "take specific steps to ensure our business remains competitive and robust".

It added: "An inevitable outcome of this will be an impact on headcount and we expect a reduction of around 600 staff and agency contractor roles by the end of 2017, with the majority of these taking place this year.

BP staff and contractors working in Aberdeen, Sullom Voe in Shetland, and Grangemouth, are expected to be affected.

The company gave no breakdown of how many jobs are expected to go in each area of its North Seas operations.

Source: bbc.com

The country earned $1.7 billion, roughly 7%, in taxes and royalties out of a total $23 billion, which is the value of gold produced in the country from 2016 to 2013, a study by the Africa Centre for Energy Policy has shown.

Using Newmont as a case- study, ACEP said the scant rent the country received from gold happened at a time when price of the commodity was good.

“The cost of production per ounce of gold was US$596 in 2012 and $542 in 2013. This indicates a revenue of $850 - $1050 per ounce of gold in 2012/2013,” the think-tank said in a press statement read by Dr. Ismael Ackah, a policy analyst.

Titled 'Golden Days for Newmont', the report said Newmont from 2003 to 2012 paid less than US$500million in taxes to the government of Ghana despite reporting annual revenues of $931 million in 2012, $919 million in 2011 and about $2.5 billion in three years.

“While Ghana's economic performance is declining over the years, the mining sector grew by 11.7% in 2013 (EITI, 2014),” the study indicated.

Over the years, there has been a clarion call for government to find ways of clawing back a lot more than the country currently gets from mining rents, especially as mining communities have not seen much benefit from same.

The companies have argued that developing communities is the task of government and not theirs, once they meet their tax obligations to the state.

In January 2012, government inaugurated a team of negotiators led by Prof. Akilakpa Sawyerr, to renegotiate existing mining contracts which were widely seen to have failed citizens.

On December 23, 2015, the Ministry of Lands and Natural Resources released a press statement to the effect that government had successfully renegotiated the contract for Newmont, the largest single investor in gold mining in Ghana.

“The proposed changes are expected to improve benefits for the Ghanaian government and economy, and increase revenues for government while assuring a fair, predictable and beneficial long-term basis for Newmont's business in Ghana,” said the statement signed by sector minister Nii Osah Mills.

At the end of the negotiations Newmont is expected to make some upfront payments of up to $27 million, which Nii Osah Mills says the company is organising to pay.

While commending government for renegotiating the Newmont contract, ACEP said the country needs a law on resource rent tax in the mining sector “to capture a share of excessive profits and introduce other exempted taxes without negatively affecting long-term mining investment”.

The country, it added, needs a mining investment law to guide how mineral revenues are collected, disbursed and spent; as well as effective transparency and accountability to track the share of royalties that goes to traditional authorities.

Source: myjoyonline.com

US jobs growth remained solid in December as the economy added 292,000 jobs, beating expectations.

The Bureau of Labor Statistics data also showed the jobless rate held at its seven-and-a-half year low of 5%.

Professional and business services, construction, health care, and food services all saw job increases.

In addition, the figures for October and November were revised up to show 50,000 more jobs created than previously reported.

However, not all sectors saw job gains in December - mining continued to decline, dropping by 8,000, and taking the total jobs lost in the sector in 2015 to 129,000.

In the fourth quarter of 2015, US economy created an average of 284,000 jobs a month, the best three-month pace in a year.

The robust figures suggest resilience in the US economy at a time of market turmoil in China, the world's second biggest economy, and global economic uncertainty.

Robust consumer spending has encouraged employers to hire staff, offsetting a drop in US exports in response to a stronger dollar.

"It is one more sign the domestic economy continues to chug along," said Kate Warne, an investment strategist at Edward Jones.

"It is not a game changer in terms of faster economic growth, but it offsets some of the other indicators that recently have suggested the economy might be slowing down."

The figures come after the first US interest rate rise in nearly 10 years in December.

The Federal Reserve raised overnight interest rates last month by a quarter of a percent to between 0.25% and 0.50%.

US stocks opened higher after the jobs figures were released. The Dow Jones Industrial Average then lost ground, closing down 167.65 points, or 1.02%, at 16,346.45.

Source: bbc.com

German carmaker Volkswagen has posted its first drop in VW brand sales in 11 years as the company continues to cope with its emissions scandal.

Sales of VW brand cars fell 4.8% in 2015 to 5.82 million cars from 6.12 million a year earlier.

Falling demand in China and US added to the losses as orders fell in December.

VW has promised it will have a fix in the coming weeks for the millions of US cars with defeat devices that disguised emission levels in diesel cars.

Sales began declining after the scandal came to light in September. Deliveries fell 5.3% in October, 2.4% in November and 7.9% in December compared with those months the previous year.

The underperformance at VW's largest division by sales and revenue pulled down annual group deliveries by 2% to 9.93 million cars, the first drop in 13 years, VW said.

However, speaking on Wednesday, Volkswagen chief executive Herbert Diess said he was "optimistic" the company would find a solution soon.

"We will bring a package together which satisfies our customers first and foremost and then also the regulators," said Mr Diess.

Regulators appear been less confident. The Environmental Protection Agency (EPA) which uncovered the scandal, said on Monday that VW had not yet "not produced an acceptable way forward".

The company will meet US regulators in Washington next week to discuss its plan.

US charges

On Monday, the US Justice Department filed a lawsuit against VW for the use of the emissions devices, which involve computer software that can detect when cars are being tested.

The Connecticut Attorney General George Jepsen said on Friday that the company was not cooperating with the investigation.

Volkswagen has been withholding corporate emails between executive related to the emissions scandal, using German law as the basis for the refusal.

"I find it frustrating that, despite public statements professing cooperation and an expressed desire to resolve the various investigations that it faces following its calculated deception, Volkswagen is, in fact, resisting cooperation by citing German law," Mr Jepsen said in a statement.

Car industry record year

In 2015, a record 17.47 million cars were sold, according to Autodata. The car data firm has been keeping records since 1980.

General Motors, one of the biggest US car firms, had an 8% increase in sales.

Mercedes-Benz USA had its most successful year since entering the country, with sales rising 3.8%.

The UK also had a record year for car sales. According to the Society of Motor Manufacturers and Traders, 2.63 million cars were registered, beating the previous record from 2003.

Source: bbc.com

Standard Life Investment - a major investor in Royal Dutch Shell - has said it will oppose the oil company's proposed takeover of BG Group.

It said a weak outlook for oil prices plus risks for BG in Brazil could make the deal "value destructive for Shell shareholders."

Few investors or analysts have openly challenged the deal's strategic benefits for the firm.

Shell said it remained confident of winning the vote.

A Shell spokesman said: "We continue to believe we have the broad base of shareholder support we need for the deal to complete."

Shell has also won the support of Institutional Shareholder Services (ISS), an influential advisory firm, which recommended that Shell shareholders support the deal.

Deal opposition

The firm announced its intention to buy BG - an oil and gas exploration company - in April 2015 for £47bn.

But Standard Life said on Friday that the risk of further oil price falls and tax and operational risks connected to BG's Brazilian assets make the deal undesirable.

"We have concluded that the proposed terms of the acquisition of BG are value destructive for Shell shareholders," said David Cumming, head of equities at Standard Life Investments.

Standard Life is the 11th largest holder of Shell's B shares, with a 1.7% stake.

Shell B shares make up the share component in the cash-and-share deal that is expected to be completed on 15 February.

Standard Life is also the 16th biggest shareholder in BG, according to data from Bloomberg.

ISS, which advises around 5% of Shell's medium and small shareholders, said it supported the deal "given the compelling strategic rationale, and the significant positive economics to be realised within a relatively short time frame."

Shell will become the world's top liquefied natural gas trader after the deal.

In December Shell said it would cut 2,800 jobs as a result of restructuring the companies into one unit.

Source: bbc.com

Ghana failed to obtain the 500 million cedis it was expecting to raise in its first bond issued yesterday, January 7, 2016.

The Bank of Ghana on behalf of government yesterday issued a three year 500 million cedi bond.

Proceeds from the bond will be used to restructure government debt and also for maturity settlement.

But government failed to obtain the expected amount.

Total bids received amounted to 426.23 million cedis.

The auction which was open to both foreign and local investors saw international bids totaling only 20 million cedis.

Meanwhile Ghana will pay  a slightly higher yield of 24.75 percent on the bond than the last 3 year bond it issued.

A three-year bond issued in October last year had a 24.5 percent yield.

Source: citifmonline.com

The oil price tumbled to $32.62 a barrel on Thursday morning as a result of rising US energy stockpiles and China's weakening currency, before recovering later in the day.

Brent crude fell 4.7%, hitting fresh 11-year lows, while US crude was down 3.9% at its lowest level since 2008.

Brent recovered to $33.95, down less than 1% on the day, while US crude climbed back to $33.42, down 1.6%.

Oversupply has hit oil prices, which are now 70% lower than in June 2014.

Companies and governments that rely heavily on oil revenues have been suffering as a result.

Adding to the continuing fall in oil prices, China depreciated the yuan on Thursday, sending regional currencies and stock markets tumbling.

Demand for crude tends to fall when the US dollar is stronger against currencies of purchasing countries, and China remains the world's biggest energy consumer.

China's stock markets were suspended less than half an hour into trading on Thursday, after falling 7% and triggering a new circuit-breaking mechanism for the second time this week.

Overnight, the US Department of Energy's weekly report showed a sharp drop in US commercial crude inventories of 5.1 million barrels to 482.3 million.

The government data also showed a gain in US crude production of 17,000 barrels a day, taking it to 9.22 million barrels a day, the fourth consecutive week of increases. There was also a rise in stockpiles at the Cushing oil hub in Oklahoma.

Oil is so oversupplied globally that countries are running out of storage.

The US, which is thought to have among the largest storage facilities in the world, has nowhere left to keep it, according to Paul Stevens, professor emeritus at the University of Dundee and a Middle East specialist.

"Storage is pretty much full and people are already talking about buying tankers as floating storage," he said.

"But if supply continues to outstrip demand, then the only thing that you can do with the oil is sell it, which inevitably pushes the price down."

The huge storage overhang means that even if US production falls this year, as oil companies halt production, it will take several months to get rid of excess supplies.

Source: bbc.com

Global shares have fallen sharply after trading was suspended on Chinese markets for the second time this week.

Wall Street followed the downward trend, with indexes sliding about 1%, while European shares closed down about 2%.

Circuit-breakers triggered the Chinese share suspension following a 7% fall in the country's main index.

Later on Thursday, the Chinese authorities said they were suspending the circuit-breaker system.

The mechanism was brought in late last year to reduce volatility on China's markets and had not been triggered until this week. It will be lifted from Friday.

The slump on Chinese markets prompted renewed panic on global markets. Share dealing was halted in the first 30 minutes, making it China's shortest trading day on record.

The FTSE 100 share index in London closed down 2% at 5,954.08.

Germany's Dax, down 2.3% at 9,979.85, while France's Cac 40 fell 1.7% to 4,403.58.

Nerves

Amid the uncertainty, the euro gained nearly a cent against the dollar, rising to $1.0870.

What does this mean for the rest of the world?

The direct financial impact of lower share prices in China is moderate. There is not enough foreign investment in the Chinese market for it to be a major problem. The London consultancy Capital Economics has said foreigners own just 2% of shares.

The issue is more about whether the financial turbulence shines a light on wider issues about the economic slowdown in China: is the economy heading for what's called a "hard landing", too sharp a slowdown?

China is now such a big force in the global economy that it would inevitably affect the rest of the world. It is the second largest economy and the second largest importer of both goods and commercial services.

Read more from Andrew Walker, BBC World Service Economics Correspondent

The pound fell against the euro by more than a cent and a half, to €1.3408.

Investors are nervous after the Chinese central bank moved to weaken the country's currency, the yuan, for the eighth day running, sparking fears of a currency war.

This move is designed to boost exports by making Chinese goods cheaper outside the country, analysts have speculated.

It is also being interpreted as an indication that consumer demand in China may be slowing more sharply than feared.

Official economic growth in China is still running at just below 7%.

But moves to devalue the yuan suggest attempts to shift the economy from an export-led one to a consumer and services-led one are running into problems.

Soros warning

Legendary US billionaire investor George Soros has warned that 2016 could see a global financial crisis on as big a scale as that seen just eight years ago.

Giving a speech to an economic forum in Sri Lanka, Mr Soros said China faced a " major adjustment problem."

He added: "I would say it amounts to a crisis. When I look at the financial markets there is a serious challenge which reminds me of the crisis we had in 2008, according to Bloomberg.

It is not the first time the billionaire hedge fund manager has warned of impending doom on the financial markets. In 2011 he warned the Greek debt crisis that consumed Europe was more serious than the 2008 financial crisis.

Analysis: Karishma Vaswani, Asia business correspondent

If at first you don't succeed - try and try again.

Or maybe you don't. Especially if panic breaks out on your stock markets for a second day this week.

The decision by China's regulators to suspend the brand new circuit-breaker mechanism - which only came into effect this week - tells you just how difficult it is to manage or control financial markets.

But perhaps that's the point.

Meddling in markets can only lead to misery - at least, that's certainly what many in China's financial circles may now be thinking.

Read more from Karishma here

China turmoil set to continue

After the trading halt, the China Securities Regulatory Commission announced that major shareholders could not sell more than 1% of a company's shares within three months as of 9 January.

It comes as a previous six-month ban of stock sales by major shareholders is set to expire on Friday.

Why is this happening now?

China's central bank devalued the yuan last Thursday, then announced the biggest month-on-month drop in its foreign exchange reserves. A World Bank report has highlighted weaknesses in China's economy. Buffeted by events in China, world stock markets are also being hit by oil prices falling to a 14-year-low.

Should we be worried?

China is responsible for 17% of all the world's economic activity, so any downturn in spending there affects the rest of the world.

Exporters to China could be hit hard as China is a key buyer of industrial commodities such as oil, copper and iron ore.

What happens next?

There is now a lot more pressure on other Asian countries to depreciate their currencies in response to China's move.

China's attempts to impose circuit breakers with a 7% threshold appear to have only added to the panic. On Wall Street, circuit breakers kick in at 20%.

Amy Zhuang, a China analyst with Nordea Bank, told the BBC she expected "a rush selling" as soon as Chinese markets opened on Friday.

Bernard Aw, market strategist at trading firm IG, said the negative sentiment was because of the perception that China may further weaken the yuan, igniting concerns over what that might mean for other economies.

A weakening of the currency is often seen by investors as an indication that that the economy is not doing well and needs to be propped up by boosting exports.

A lower yuan makes the cost of exporting goods for Chinese companies cheaper, giving the slowing factory sector a boost.

What are China's 'circuit-breakers'?

• The measures were announced in December after a summer of dramatic market losses - used for the first time time on Monday and again on Thursday
• They automatically stop trading in stock markets that drop or appreciate too sharply - a 15-minute break if the CSI 300 Index moves 5% from the market's previous close, or a whole-day halt if it moves 7% or more.
• Supposedly introduced to limit panic buying and selling - which is more likely in small investor-dominated markets like China's - but critics say they only add to selling pressure the next day.

After disappointing manufacturing data on Monday, the mainland benchmark index plunged 7%, triggering a global equities sell-off.

The negative sentiment spilled over the border to Hong Kong, where the Hang Seng index also lost 3%, closing at 20,333.34 points.

Japan's Nikkei 225 index finished down 2.3% to 17,767.34, while Australia's S&P/ASX 200 index lost 2.2% to 5,010.30 as energy shares dragged down the market.

Source: bbc.com

Oil has continued its rollercoaster ride into the new year, with Brent crude falling below $35 a barrel for the first time in 11 years.

Brent crude sank by 4.2% to $34.88 a barrel, surpassing its late December fall, and taking the price to its lowest level since 1 July 2004.

The price of US crude dropped 3.3% to $34.77 a barrel.

The sharp falls followed a short-lived rally on Monday after Saudi Arabia broke diplomatic ties with Iran.

Analysts said fears over the worsening relations between Saudi Arabia and Iran, which had initially raised concerns about possible supply disruptions and boosted the oil price, had now been overtaken by pessimism over oil cartel Opec ever agreeing on a production ceiling.

How low?

Historically, Opec has cut production to support prices. But led by Saudi Arabia, by far the group's most powerful member, the group has resolutely refused to trim supply this time.

Rising tensions over Saudi Arabia's execution of Shia cleric Sheikh Nimr al-Nimr mean that any agreement is now deemed less likely than ever.

"With relations between Opec kingpins Saudi Arabia and Iran at a historic low point, it solidifies an already unlikely scenario that Opec might cut output," said Barclays analyst Alia Moubayed.

Since mid-2014, oil prices have slumped 70% mainly because of oversupply. This in turn is largely due to US shale oil flooding the market.

At the same time, demand has fallen because of a slowdown in economic growth in China and Europe.

Iranian oil exports are also expected to rise later this year once Western sanctions against Tehran for its nuclear programme are lifted, increasing the oversupply of oil.

Opec is hoping that refusing to cut production will help to drive US shale producers out of business, believing that they will fall victim to lower prices long before its own members, and has forecast that prices will recover to $70 a barrel by 2020.

Goldman Sachs has warned that oil prices could go as low a $20 a barrel, but most analysts are expecting the price to stabilise in the second half of the year as supply from non-Opec nations slows and demand remains relatively robust.

Source: bbc.com

Sales of guns in the US are rising, just as President Barack Obama unveils control measures designed to limit the availability of weapons.

Shares in gunmaker Smith & Wesson rose to their highest value since 1999 ahead of the President's announcement.

On Monday, Smith & Wesson raised its sales estimate, saying the market was "stronger than originally anticipated".

The number of background checks on potential buyers - a guide to future sales - has also risen.

The National Instant Criminal Background Check System said that checks were up by about 38% last month compared with December 2014.

Smith & Wesson's trading update said that for the three months ending 31 January it expected sales to be about $175m-$180m. Earlier guidance put the likely figure at between $150m and $155m.

The company said that "the sell-through rate of its products at distribution has been stronger than originally anticipated, resulting in reduced distributor inventories of its firearms". That means guns are being bought faster than Smith & Wesson is supplying them.

The firm said its net profit was $14.2m (£9.46m) for the period, compared with $5.2m for the same period last year.

In December, the company reported that profits had nearly tripled for the three months to October and net sales have increased 38% over the last five years.

On Monday, the White House unveiled proposals for gun control measures that require more sellers to get licences and more gun buyers to undergo background checks.

The US Bureau of Alcohol, Tobacco, Firearms and Explosives will require that people who sell guns at stores, at gun shows or over the internet be licensed and conduct checks,

The bureau is also finalising a rule requiring background checks for buyers of dangerous weapons from a trust, corporation or other legal entity. President Obama is due to disclose further details about the plans on Tuesday.

The president has said he will curb gun violence and unregulated sales after a series of mass shootings, which included last month's attack in San Bernardino, California, that killed 14 people.

James Hardiman, an analyst at Wedbush Securities, said the increase in gun sales was probably due to buyers fearing tougher controls.

News of the stronger gun market saw Smith & Wesson's shares up 11% on Tuesday, despite stock markets in general falling sharply. Competitor Sturm Ruger's share rose 7.28% to a 52-week high.

Source: bbc.com

French telecoms operators Orange and Bouygues have confirmed that they are in talks over a possible merger.

In separate statements, Orange said that the talks were "preliminary" while Bouygues said that "no decisions have been taken".

If the deal did go ahead it would reduce the number of French telecoms operators to three from four.

The combined group would have a near-50% share of the French mobile and fixed telecoms market.

As a result, any deal is likely to be scrutinised by both domestic and European competition authorities.

French Economy Minister Emmanuel Macron opposed a previous bid by European telecoms group Altice to buy Bouygues, saying in June it risked creating a French operator that was "too big to fail".

But he has since said that he is not opposed in principle to further deals in the sector.

French newspaper reports have suggested that the deal could be worth €10bn (£7.3bn) in a combination of cash and shares.

In its statement, Bouygues said there was "no guarantee that there will be an outcome to these preliminary discussions".

Bouygues said it had signed a confidentiality agreement with Orange as "it is interested in opportunities that would enable it to bolster its long-term presence in the telecoms sector".

Orange said that the talks were not "limited by any particular calendar" and said there was "no commitment to any particular outcome".

Source: bbc.com

The US justice department is suing Volkswagen over the emissions scandal that saw the German car giant fit software in millions of cars to cheat emissions tests.

In September last year, following an investigation by US regulators, VW admitted fitting the so-called defeat device on 11 million vehicles globally.

The scandal has hit sales of VWs worldwide.

The company has put aside billions of euros to deal with the fallout.

The lawsuit, on behalf of the US Environmental Protection Agency (EPA), was filed on Monday in a federal court in Detroit, Michigan.

"The complaint alleges that nearly 600,000 diesel engine vehicles had illegal defeat devices installed that impair their emission control systems and cause emissions to exceed EPA's standards, resulting in harmful air pollution," the filing said.

It also alleges that VW "violated" clean air laws by selling cars that were different in design from those originally cleared for sale by the EPA.

"With today's filing, we take an important step to protect public health by seeking to hold Volkswagen accountable for any unlawful air pollution, setting us on a path to resolution," said assistant administrator Cynthia Giles for the EPA's Office of Enforcement and Compliance Assurance.

"So far, recall discussions with the company have not produced an acceptable way forward. These discussions will continue in parallel with the federal court action."

The department said the filing was just the first step in "bringing Volkswagen to justice".

The carmaker is also facing separate criminal charges, and a raft of class-action lawsuits filed by VW owners.

'Screwed up'

The EPA says that VW fitted many of its cars with a device that was able to recognise test conditions and adjust the engine settings accordingly, with the express purpose of giving distorted readings on nitrogen oxide emissions.

The company admitted to "totally screwing up", and there has been a shake-up in the management structure and personnel as a result. Martin Winterkorn resigned as chief executive and was replaced with Matthias Mueller, the former boss of Porsche.

The carmaker is currently conducting an internal investigation that it says will "leave no stone unturned".

The scandal has hit VW hard. It will begin recalling millions of cars worldwide soon, and has set aside €6.7bn (£4.6bn) to cover costs. That resulted in the company posting its first quarterly loss for 15 years, of €2.5bn in late October.

With the lawsuits piling up, experts say the final costs are likely to be much higher than that.

Source: bbc.com

Facebook founder Mark Zuckerberg has said he plans to build artificial intelligence (AI) to help him around the house and with his work.

In a Facebook post, he said his personal challenge this year would be to build a "simple AI" like Jarvis from Hollywood blockbuster film Iron Man, referring to the AI butler.

Mr Zuckerberg plans to share his progress over the course of the year.

Last month, he made headlines for plans to donate 99% of his stake in Facebook.

He had to defend his philanthropic venture -launched to celebrate the birth of his daughter- after critics argued that it could provide a way for the founder to avoid paying tax on the sale of his shares.

'Control everything'

On Monday, Mr Zuckerberg said he would start to build the AI with technology that is already out there and teach it to understand his voice to control everything in his home from music and lights to temperature.

"This should be a fun intellectual challenge to code this for myself," Mr Zuckerberg said.

"I'll teach it to let friends in by looking at their faces when they ring the doorbell," he said. "I'll teach it to let me know if anything is going on in Max's (his daughter's) room that I need to check on when I'm not with her."

For Facebook, he added that the system would help him visualize data in virtual reality and help him build better services, as well as lead his company.

His announcement comes as Facebook is in the midst of AI initiatives such as building an assistant through its Messenger app for users.

The tech billionaire said a part of the motivation behind this year's challenge was the reward of building things yourself.

His previous personal challenges have included learning Mandarin, reading two books a month and meeting a new person everyday, he said.

Source: bbc.com

(Closed): Wall Street finished its final day of 2015 down, marking its worst annual performance in seven years.

Oil prices suffered a second year of steep losses and are expected to take at least another year to clear as the international surplus continues.

The Dow Jones was down 178.84 points or 1.03%, at 17,425.03.

The S&P 500 was down 0.95% at 2,043.86, while the tech-heavy Nasdaq composite was 1.15% lower at 5,007.41.

The oil price collapse sent global markets reeling throughout 2015.

Shares of US oil giants Chevron and Exxon Mobil were down 0.17% and 0.22% respectively for the day.

Energy stocks have taken a beating this year, with the S&P energy sector losing nearly 24% in the last twelve months.

For the year the S&P 500 was down 0.7% while the Dow Jones ended 2.2% lower.

The Nasdaq, however was a bright spot closing 5.7% higher for 2015.

Trading volumes were thin on the last day of the year.

Apple was down 1.92% weighing on the Nasdaq.

McDonald's was down 1.08% at $118 and weighed on the Dow the most.

Stocks were led lower as US jobless claims increased by 20,000 to 287,000 last week, wildly missing forecasts of 270,000.

Brent crude oil was up 3% at $37.60 per barrel for the day but down 35% over the year. US light crude was 1.2% higher at $37.04 but down 30% for the year.

Source: bbc.com

Despite government’s efforts to stop piracy in the country, textile companies are still lamenting the impact on their operations of pirated textiles smuggled into the country.

The Managing Director of Ghana Textile Prints (GTP) Kofi Boateng said: "It is true that government has set up an anti-piracy task force, but the problem is so large -- to an extent that the efforts of government are not having any meaningful impact, though they have scared a few people.

"Our designs, labels and copyrights are being imitated by some people from the Far East. They then print and bring them back onto the Ghanaian market. So we now have to employ more young but experienced creative people so that we can have thousands of designs and colours on a monthly basis in order to survive and compete well," he said.

The once-vibrant Ghanaian textile industry is at a cross-road due to importation of cheap, pirated textiles that make original textile designs manufactured in Ghana relatively expensive.

There were about 20 textile companies which employed about 25,000 in the 1980s. But currently there is a remnant of just four textile companies employing under 2,000 people, battling to stay in business amid a myriad of challenges.

Even surviving companies Akosombo Textile Limited (ATL), Tex Style Ghana Limited (GTP), Printex and Ghana Textile Manufacturing Company (GTMC) are struggling in the face of competition from cheap, pirated imports.

The Association of Ghana Industries (AGI) has said it is not against the importation of fabrics so far as they are not fake in terms of design, brand-name and other characteristics.

The illegal business has in recent years led to the retrenchment of many textile workers, while some local manufacturers have had to diversify their businesses.

The task force team since its establishment in 2010 has undertaken many different destruction exercises, with a total 6,000 pieces of Ghanaian-designed fake textiles destroyed.

The textile designs were seized during operations by the task force at various outlets across the country.
John Kwesi Amoah, Assistant Manager Brand Protection ATL, noted that: “We want fair competition; we are not saying that government should ban people from importing textiles, but we want fair competition. People should come with their own design and brand”.

Source: peacefmonline.com

Apple's Italian subsidiary has agreed to pay €318m (£235m; $348m) following an investigation into tax fraud allegations, Italy's tax office says.

Italy's tax authorities say the company failed to pay €880m in tax between 2008 and 2013, according to La Repubblica.

The settlement follows an investigation by prosecutors in Milan.

The US tech giant has not commented on the deal. It has previously denied attempting to escape paying tax owed on profits made around the world.

Apple Italia is part of the company's European operation which is headquartered in Ireland, a country with one of the lowest levels of corporation tax in the EU.

A spokesman for the tax agency confirmed the newspaper's report was accurate but would not divulge further details.

Ireland taxes corporate earnings from normal business activities at a rate of 12.5% compared with 27.5% in Italy.

Investigators in Italy say they found a huge gap between the company's revenues in Italy of over €1bn between 2008 and 2013 and the €30m that was paid in tax in the country.

The settlement comes amid a European Commission investigation into the tax arrangements of numerous multinational companies accused of using cross-border structures to reduce their tax bills, sometimes with the help of secret and potentially illegal "sweetheart" deals.

The issue of Apple's Irish arrangements is separate from but related to the broader one of multinational companies "parking" revenues and profits in low-tax countries.

Apple's activities in the Republic of Ireland are currently subject to that investigation, which is due to announce soon whether tax breaks designed to secure the company's extensive investment in Ireland amounted to illegal state aid.

Apple's European operations have been headquartered in Cork since 1980.

The company is expanding its workforce there to 6,000 and it has been joined in Ireland by other US tech firms including Twitter, Microsoft and Google.

The company's chief executive, Tim Cook, has rejected accusations that the firm has been sidestepping US taxes by stashing cash overseas, insisting: "We pay every tax dollar we owe."

Mr Cook said on a visit to Ireland in November that he was confident the Dublin government and his company would be found to have done nothing wrong.

Source: bbc.com

Two US class action lawsuits against Facebook by shareholders alleging it hid growth concerns ahead of its 2012 public listing can now go ahead.

A federal judge certified the legal proceedings, Reuters reports, saying investors who claim they lost money could pursue their claims as groups.

Facebook told the BBC that it was disappointed with the decision and it has launched an appeal against it.

The firm's initial public offering (IPO) in May 2012 raised $16bn (£10bn).

The investors say that by purchasing the firm's shares at inflated prices they lost money.

That year, its shares began trading on 18 May in New York at $38 per share, but the price fell to almost half the amount of $17.55 on 4 September.

The price stayed below the IPO price for more than a year, but shares ultimately rebounded and closed up at $107.26 on the Nasdaq index on Tuesday.

District judge Robert Sweet gave the lawsuits class action certification on 11 December, but the order was made public on Tuesday, Reuters reports.

Concerns over revenue

Investors claim that Facebook omitted information about revised revenue projections and the impact that increased mobile usage, at a time when there was little advertising on mobile devices, would have on its revenues.

But Mr Sweet said Facebook provided "an impressive amount of evidence" to indicate that shareholders knew how mobile usage would affect the firm's revenue.

However, he rejected the tech giant's argument that shareholders should pursue their claims individually.

In a 55-page decision, Mr. Sweet said that given the extraordinary size of the case, allowing two subclasses "in fact adds more weight to the predominance of common questions and answers, practically negating the individualized questions raised".

Facebook told the BBC that it believes the class certification is "without merit".

The tech giant also said the decision "conflicts with well-settled Supreme Court and Second Circuit law", and it has already filed an appeal seen by the BBC.

"The suggestion that class members' knowledge might be inferred on a class-wide basis flouts due process," the appeal said.

Source: bbc.com

Brazil's deficit jumped in November to one of the highest levels on record as state finances came under increasing strain amid a deep recession.

The public sector deficit - the difference between what the government spends and what it receives in revenues - rose to 19.6bn reais ($5.1bn).

This was worse than expected and much higher than October's 11.5bn reais.

The government is struggling to increase tax revenues as the economy continues to shrink.

Between July and September, the economy contracted by 1.7% compared with the previous quarter, deepening the country's worst recession in 25 years.

The economy has shrunk in all but one of the last six quarters.

Unemployment has risen sharply this year and now stands at 7.5%, putting a further strain on government finances.

Inflation is also running at more than 10%, undermining the value of Brazilians' savings and their ability to spend.

Brazil's economy has been hit hard by a slowdown in global demand - particularly in China - for its commodities, while a corruption scandal centred on state oil giant Petrobras has severely damaged investor confidence.

Source: bbc.com

Asian shares traded mixed, following a lacklustre lead from global markets dragged down by oil prices.

The price of US crude oil dropped more than 3% overnight, while Brent crude was back near 11-year lows on reports that Iran plans to increase exports once sanctions are removed, which would add to the global supply glut.

Lower energy shares across Asia weighed on benchmark indexes.

Japan's Nikkei 225 index was down 0.1% to 18,850.17 in morning trade.

"Oil prices look likely to continue in their depressed state if Iran is able to ramp up its exports at such a rapid rate," said market analyst Angus Nicholson at trading firm IG in a note on Tuesday.

Iran intends to increase exports by 500,000 barrels per day once the economic sanctions are removed, according to reports.

Toshiba's restructuring

Meanwhile, shares of Toshiba rose by 0.6% on a local report that the struggling electronics giant planned to ask for an additional $2.5bn (£1.7bn) in credit to fund its large-scale restructuring.

The company is reeling from a $1.3bn accounting scandal earlier this year.

Chinese shares headed higher in early trade with the Shanghai Composite up 0.4% to 3,546.38, while Hong Kong's Hang Seng index was higher by 0.1% to 21,945.33.

In Australia, the benchmark S&P/ASX 200 was up 0.6% to 5,238.80 after reopening from public holiday on Monday.

Bucking the trend were shares of Woodside Petroleum, up 0.1% despite the drop in oil prices.

South Korea's Kospi index was down 0.7% to 1,949.56, following the previous session's losses.

Source: bbc.com

The Bank of Ghana has asked rural and community banks (RCBs) to put in place corporate governance and effective risk management best practices that help banks to clearly identify, measure, control and mitigate the risks associated with their operations.

It observed that good corporate governance and risk management systems lie at the heart of any successful business, and further advised rural banks to adopt adequate measures that deal with the associated challenges of operational and credit risks which often come along with their operations.

Head of Other Financial Institutions Supervision, Bank of Ghana, Mr. Raymond Amanfu, made these remarks at the shareholders’ Annual General Meeting (AGM) of Atwima Mponua Rural Bank at Toase.

He said RCBs should give serious consideration to human capital as part of their attempts to grow.

He insisted that RCBs should endeavour to appoint competent and reliable persons of high integrity to manage their institutions, and also deal with issues of unethical banking practices promptly and appropriately.

He indicated that the BoG does not countenance such practices. “We require due diligence be carried out on all prospective RCB staff before they are employed”.

Mr. Amanfu said impacts from the rural banking industry continue to be felt in the economy. He noted that after four decades of operations, the RCB sector has evolved significantly in response to phenomenal challenges posed by changing dynamics in the industry and among other actors.

It is important to note that the total assets of rural and community banks (RCBs) grew from a year-on-year total figure of GH?1.8billion in October 2014 to GH?2.40billion in October 2015, marking a 17.8 percent increase.

This noteworthy performance of RCBs accounted for 3.4 percent of the total assets in a banking industry with GH?70.39billion as at October 2015.

The total assets of RCBs were funded mainly by deposits, 76.22 percent; borrowings and other liabilities, 10.36 percent; and reserves of 9.45 percent.

Notwithstanding the steady performance recorded by the RCB sub-sector, the BoG expressed concern at some major lapses which continue to occur in the operations of RCBs despite several initiatives taken to address them.

It said it will ensure that all licenced institutions operate within the rules and laws governing their operations, and not tolerate any violations of laws -- as offenders will be appropriately sanctioned.

This warning comes with the knowledge that some RCBs have been operating agencies in the urban centres without the BoG’s approval.

The central bank has noted that these agencies are mostly established without due consideration as to the financial and supervisory capabilities of the RCBs, which often leads to misuse of depositors’ funds with attendant effects of flouting prudential requirements.

Source: bbc.com