Mario Draghi, the ECB president, addresses the media in Frankfurt yesterday after the bank cut its growth forecast for the euro zone. Johannes Eisele / AFP
Mario Draghi, the ECB president, addresses the media in Frankfurt yesterday after the bank cut its growth forecast for the euro zone. Johannes Eisele / AFP

ECB to buy bonds to help weaker nations



The European Central Bank (ECB) yesterday unveiled plans to restart buying government bonds in a move aimed at cutting high borrowing costs faced by distressed euro-zone nations.

In a sign of the deepening turmoil enveloping the single-currency area, the ECB also trimmed its economic forecasts for this year and next.

"We are in a situation now where you have large parts of the euro area in what we call a bad equilibrium," said Mario Draghi, the bank's president, announcing the plan.

"You may have self-fulfilling expectations that feed on themselves and generate very adverse scenarios. This would justify the intervention of the central bank."

Mr Draghi fleshed out more details of the bond-buying programmethe ECB first mooted last month. Involving the purchase of government bonds in the open market, the scheme will provide a "fully effective backstop" against market volatility.

But he made it clear governments seeking help under the scheme would have to comply with strict rules and conditions first. It means Spain and Italy may have to follow the path of Greece, Portugal and Ireland in seeking formal bailouts before the ECB will act.

The ECB hopes buying sovereign bonds will help to raise their pricing and, as a result, lower their yield. Yields are used as a benchmark by countries to determine the cost they borrow in the market.

Yields for peripheral countries' five and 10-year bonds are still at elevated levels, despite falling in the past month since news of the bond-buying scheme emerged.

European markets edged higher after the announcement, with the Eurofirst 300 up 1.01 per cent at 1,090.17.

The ECB had earlier left its official interest rates unchanged.

Its growth forecast for this year was trimmed to about minus 0.4 per cent, with possible growth next year of up to 1.4 per cent.

Mr Draghi's announcement came on the same day a fresh wave of dire economic data signalled the euro zone was heading towards a deep recession.

The decision to go ahead with buying bonds signals Mr Draghi's victory in the battle to push through the scheme despite opposition from Germany's Bundesbank.

Mr Draghi yesterday said the vote in favour of the programme was not unanimous with one dissenting vote, without giving further details.

The latest measure will succeed the bank's securities markets programme, which has been inactive since March.

The EU's statistics office Eurostat confirmed GDP in the 17 countries using the euro fell 0.2 per cent in the second quarter compared with the previous quarter. The year-on-year fall was revised to 0.5 per cent from its previous estimate of 0.4 per cent.

Meanwhile, the Organisation for Economic Cooperation and Development, based in Paris, also warned the problems were infecting the global economy. The crisis was "dampening global confidence, weakening trade and employment and slowing economic growth," it said.

Other data showed unemployment in Greece, the initial source of euro-zone woes, rose to 24.4 per cent in June, up from 23.5 per cent in May.

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Specs

Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request

How to wear a kandura

Dos

  • Wear the right fabric for the right season and occasion 
  • Always ask for the dress code if you don’t know
  • Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work 
  • Wear 100 per cent cotton under the kandura as most fabrics are polyester

Don’ts 

  • Wear hamdania for work, always wear a ghutra and agal 
  • Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
  • Drones
  • Animals
  • Fireworks/ flares
  • Radios or power banks
  • Laser pointers
  • Glass
  • Selfie sticks/ umbrellas
  • Sharp objects
  • Political flags or banners
  • Bikes, skateboards or scooters
The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

Company profile

Date started: Founded in May 2017 and operational since April 2018

Founders: co-founder and chief executive, Doaa Aref; Dr Rasha Rady, co-founder and chief operating officer.

Based: Cairo, Egypt

Sector: Health-tech

Size: 22 employees

Funding: Seed funding 

Investors: Flat6labs, 500 Falcons, three angel investors

NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

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Dubai works towards better air quality by 2021

Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.

The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.

These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.

“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.

“We’re in a good position except for the cases that are out of our hands, such as sandstorms.

“Sandstorms are our main concern because the UAE is just a receiver.

“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”

Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.

There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.

“There are 25 stations in total,” Mr Al Daraji said.

“We added new technology and equipment used for the first time for the detection of heavy metals.

“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”

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5 of the most-popular Airbnb locations in Dubai

Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:

• Dubai Marina

The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.

Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739 
Two bedroom: Dh627 to Dh960 
Three bedroom: Dh721 to Dh1,104

• Downtown

Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure.  “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."

Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154

• City Walk

The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena.  “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”

Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809 
Two bedroom: Dh682 to Dh1,052 
Three bedroom: Dh784 to Dh1,210 

• Jumeirah Lake Towers

Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.

Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629 
Two bedroom: Dh549 to Dh818 
Three bedroom: Dh631 to Dh941

• Palm Jumeirah

Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.

Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770 
Two bedroom: Dh654 to Dh1,002 
Three bedroom: Dh752 to Dh1,152 

COMPANY%20PROFILE
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The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

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