Wealthy Indians desert planes for trains

Wealthy Indians desert planes for trains

By Amy Kazmin in New Delhi

Published: August 22 2008 18:37 | Last updated: August 22 2008 22:33

India’s affluent middle class is rekindling its affair with long-distance train travel, as sharp jumps in domestic airline ticket prices push many former frequent fliers back to the railways.

India has seen a boom in domestic air travel, as low-cost carriers – led by Air Deccan – brought the once-seeming luxury of air travel within the reach of a far greater number of Indians. They had previously relied on the country’s colonial-era rail system for most long journeys.

However, sharp rises in the cost of fuel have pushed India’s domestic airline ticket prices up in some cases by 20 per cent, prompting many cost-conscious Indians to keep their feet on the ground.

In July, India’s airlines carried 12.6 per cent fewer passengers on domestic flights than a year earlier, at 3.04m. Meanwhile, Indian Railways, the vast state network, saw traveller numbers in its more up-market, air-conditioned cars surge by nearly 50 per cent in the same period.

“We feel that some passengers are diverting to the trains from planes,” said Anil Kumar Saxena, a railways spokesman, although he said it was too early to know whether the trend would last.

Pankaj Gupta, a partner in New Delhi’s Outbound Travels, said, “a lot of people can’t believe that so recently it was x-y-z to fly somewhere and now it’s up by 20 per cent. It’s a shock to them. A lot of people are deferring their travel, saying: ‘We’ll think about it and let you know.’”

Since the 1990s Indian Railways has sought to upgrade its service to appeal to more demanding consumers, introducing measures such as online ticket sales.

Raajveev Batra, head of KPMG’s transport practice in India, said leisure travellers were those most likely to forgo flights and return to the trains while business travellers were still probably willing to pay a premium for a quick, efficient journey.

“The low-cost carriers helped people appreciate and realise the value of time,” he said. “People who still wish to pay more and save time will not go to other modes of transport ... The drop is largely for those passengers who were leisure travellers. I am sure that they must be shifting back to other modes of travel.”

Mr Batra said air carriers must now focus on boosting their efficiency, and predicted a period of industry consolidation. “It’s a good opportunity for airlines to introspect and look at their business but I don’t see doom for the carriers,” he said.

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Manhattan looks abroad for real estate saviours

By Daniel Pimlott and Sarah Mishkin in New York

Published: August 23 2008 03:00 | Last updated: August 23 2008 03:00

Real estate developers in New York City are stepping up their appeals to foreign buyers to bolster a housing market that is beginning to reflect the sagging fortunes of Wall Street.

Stratospheric housing prices in Manhattan, which until recently was one of the few markets in the US that had escaped the housing slump, have long been propped up by foreigners eager to live and invest there. The weak dollar has helped to encourage them still further in recent years.

But financial workers - whose annual bonuses (or lack thereof) are an obsession for Manhattan's property brokers - are facing job cuts and an uncertain future. This has left the city's resourceful brokers working harder to lure foreign investors.

"[Sales to foreigners are] absolutely one of the stabilising factors in the current market," says Steven Ussher, who runs a big real estate marketing company in New York. "For the last two years we have been travelling internationally to sell product around the globe - Korea, Australia, India, Spain, Singapore" and others.

The Moinian Group, a Manhattan developer, is keen to pitch its apartment tower on the west side of Midtown to foreigners. A quarter of sales so far have gone to international buyers and, with 10 per cent of the apartments still on the market, the group is increasing its advertising in Korean and Italian publications. It is also trying to attract Chinese buyers.

Prices in Manhattan are nearly four times as high as they were a decade ago, according to Miller Samuel, a New York real estate data company.

But home prices fell 3.1 per cent to an average of $1,669,730 (€1,128,100, £894,200) in the second quarter, according to Miller Samuel - the first time prices have slipped since the end of 2006. The total number of sales was more than 20 per cent lower than a year ago.

"In this market the international client base is more prevalent," says Jason Gothari, associate director at the Moinian Group. "They have the means right now to more easily obtain cash."

Foreigners have had an outsized impact on the market in New York recently - about a third of all condominiums sold in the last two years went to foreign buyers, according to Jonathan Miller, who runs Miller Samuel. That is about double the previous level.

The appeal to foreigners looking to buy apartments comes as the city's hotels and shops are bulging with tourists eager to take advantage of the weak dollar. Middle Eastern buyers have also been buying up New York's prize real estate assets this year, taking a controlling stake in the Chrysler Building, the art deco icon of the Manhattan skyline, and investing in the GM Building, the most expensive building ever sold in the US.

Other high-profile developers making a pitch to foreign buyers include Donald Trump scions Donald Jr and Ivanka Trump. The developer's children recently hosted a press event reaching out to British buyers for their Soho Hotel project. About 10 per cent of the units sold so far have been to Brits.

"We've had an enormous number of UK buyers contacting us on their own," Ivanka Trump said.

At Sotheby's, the luxury estate agent whose properties include $120m penthouses overlooking Central Park and $20m apartments in the West Village, "a lot of agents speak more than one language", says Lee Summers, senior vice-president.

The exclusive broker recently showed up at the Salon Privé supercar event at the Hurlingham Club in England to seek out wealthy young Brits.

But, with Wall Street banks continuing to suffer a year after the onset of the credit crisis, some doubt whether foreign investment will be enough to rescue the Manhattan market from some of the pain afflicting other parts of the US.

"As the US economy weakens their importance to the market becomes more heavily weighted," says Mr Miller. "But while important they are not enough to offset the weakness."

Rauert Peters of Engel & Völkers, the international brokerage in the US, says excited US estate agents are increasingly turning up at European road shows. "Based on the common perception that everyone in Europe should be buying in the US . . .the expectation is high, and the activity is high, but I'd say the real result is relatively low."

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Buffett says has no "buy order" on oil sands firms
Reuters
By Jeffrey Jones Reuters - Friday, August 22 07:48 pm

CALGARY, Alberta (Reuters) - Warren Buffett toured Canada's oil sands with his friend Bill Gates this week to understand how the resources are developed, but the billionaire investor said on Friday he had no plan to buy into the sector.
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In an interview on CNBC television, Buffett said he and the Microsoft co-founder discussed their interest in the oil sands a few months ago, and agreed they would get a better education with a first-hand look than just reading about it.

The visit on Monday led some in the Canadian oil and investment industries to speculate that Buffett, chairman of conglomerate Berkshire Hathaway Inc , and Gates could be readying to invest in the oil sands.

But Buffett said on Friday he has no "buy order" out, pushing down shares that had risen earlier in the week.

"No, no. I go to the movies, but I don't buy movie companies. I mean, I'm always interested in understanding the math of things and understanding as much as I can about all aspects of business," he said on CNBC's Squawk Box.

"And what I learn today may be useful to me two years from now. I mean, if I understand the tar sands today and oil prices change or whatever may happen, I've got that filed away and I can use it at some later date."

Shares in oil sands producers jumped this week on the Toronto Stock Exchange, partly on investor wagers that Buffett and Gates were interested in the business.

But they fell sharply on Friday following Buffett's remarks, and as crude prices tumbled by more than 5 percent.

Canadian Natural Resources Ltd was off C$4.42 at C$85.05, Suncor Energy Inc sank C$2.76 to C$59.02 and Canadian Oil Sands Trust , the largest interest holder in the Syncrude Canada Ltd oil sands venture, was off C$1.47 at C$50.23.

The oil sands of northern Alberta represent the largest deposits of crude outside the Middle East and are seen as a major source of secure oil supplies for the United States.

With more than $100 billion targeting new projects, the oil industry estimates production from the oil sands will nearly triple to 2.8 million barrels a day by 2015.

However, the thick crude is much more costly to develop than conventional oil, and environmental groups have mounted major campaigns to spotlight the impact of oil sands development on air, land and water.

Buffett and Gates toured Canadian Natural's C$9.3 billion ($8.9 billion) Horizon oil sands mining and synthetic crude processing operation, which is due to start production later this year.

It will be the fourth major oil sands mining venture, following those run by Syncrude, Suncor and Royal Dutch Shell Plc .

The tycoons also visited an in situ oil sands project, in which steam is injected into the earth to loosen up the gooey crude, allowing it to be pumped to the surface in wells.

Buffett did not say which such operation he toured.

No matter how efficient oil sands operations are, oil prices -- and the ability to make long-term price forecasts -- will be the biggest factor in their profitability, he said.

"Because you could be the world's greatest mining engineer, but if you were wrong about the price of oil in a big way, it would negate all that knowledge," Buffett said.

"So I can tell you that ... if you had $120 oil from now till, you know, 50 years from now, that the tar sands would work out very well. But I don't know the answer to that."

($1=$1.05 Canadian)

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British economy faces recession after zero growth
AFP
By Roland Jackson AFP - Friday, August 22 05:51 pm

LONDON (AFP) - Britain faced the threat of a recession on Friday after official figures showed the economy stuttered to a halt in the second quarter with its weakest performance for 16 years.
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The news is a major blow to British Prime Minister Gordon Brown whose governing Labour Party faces a hammering in the opinion polls and who had prided himself on his record of economic prudence when finance minister.

In reaction, the British pound dropped close to two-year lows against the dollar but stocks got a boost on the view the Bank of England is now more likely to cut interest rates in an effort to boost the slowing economy.

Prior to the three months to June, the British economy had enjoyed 63 consecutive quarters of expansion, much of which had been under Brown's tenure as chancellor of the exchequer between 1997 and 2007.

The 15-nation eurozone economy, of which Britain is not a member, also slumped towards recession in the second quarter as it shrunk for the first time in its short history, adding to the uncertain outlook.

Economists said the latest data left Britain teetering on the verge of a recession -- which is defined as two or more quarters of negative economic growth.

"The second estimate of second-quarter UK GDP clearly increases the -- already strong -- chances that the economy will fall into recession over the coming quarters," said Capital Economics analyst Jonathan Loynes.

"The economy now looks set to grow by just 1.2 percent or so this year, with a very strong chance of a technical recession in the second half ... and things will be considerably worse in 2009."

The reading of zero growth in gross domestic product (GDP) compared to the first three months of 2008 was revised sharply down from an initial reading of 0.2-percent expansion in the second quarter.

It also marked the weakest quarterly growth rate since the second quarter of 1992, the Office for National Statistics (ONS) said in a statement on Friday.

A Treasury spokesman blamed the outcome on the global credit crunch and high commodity prices, particularly the soaring cost of oil.

Britain has been hit by soaring inflation, runaway fuel costs and a slumping property market, with each problem compounding the others and making policy even more difficult to set.

Office for National Statistics website "The UK, like other economies, is seeing the consequences of globally high commodity prices as well as the uncertainty in the credit markets," the Treasury spokesman said.

"The government's priority is to guide Britain through these challenging times while also supporting those hit hardest as a result of these global factors."

The ONS said British GDP grew 1.4 percent during the second quarter when compared with the year-earlier period. That compared with the previous official estimate of 1.6 percent growth. The third and final growth estimate for the second quarter will be published in a month.

Market expectations had been for no change for both growth readings.

The sharp downgrade to the quarterly figure "follows downward revisions to the growth in output of the production, construction and services industries," the ONS said.

Economists speculated that following the data the Bank of England's monetary policy committee (MPC) could slash interest rates some time soon, after holding borrowing costs at 5.0 percent earlier this month.

"We continue to expect a technical recession in the second half of the year and the MPC to respond with the first in a series of rate cuts in November," said Lehman Brothers analyst Peter Newland.

"We judge that the risks of an earlier move have risen."

Analysts at British financial services group Ernst & Young agreed.

"With GDP flat in the second quarter and further signs of slowing activity, a contraction in the third quarter is now highly likely," they wrote in a note to clients.

"As a result, the risks to medium-term inflation are likely to subside, giving the Bank of England the scope to cut interest rates sooner than they may have thought possible."

In the first quarter of 2008, the British economy recorded quarterly expansion of 0.3 percent and an annual growth reading of 2.3 percent.

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高齢者の株譲渡益、500万円以下非課税に　金融庁要望案

　金融庁が月内にも財務省に提出する2009年度の税制改正要望案が22日分かった。焦点の証券税制は高齢者の株式投資を対象に、500万円以下の譲渡益と、100万円以下の配当金にかかる税金（現行10％）をゼロにするよう要望する方向だ。原則的にすべての個人投資家を対象に、投資額で100万円までの配当を非課税とすることも求める。個人金融資産が潤沢な高齢者を中心に手厚い優遇措置を講じ、東京市場の活性化を促す。

　株式の譲渡益と配当の税率は03年から本則（20％）の半分の10％に軽減している。09年から2年間は譲渡益で500万円以下、配当は100万円以下に限って10％の軽減税率を適用。それを超える分は20％の税率を適用することが決まっている。

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国の債務超過277兆円　06年度貸借対照表　揺らぐ「小さな政府」

　財務省は22日、2006年度の国の資産と負債の状況を示した貸借対照表を発表した。一般会計と特別会計を合わせて計算した場合、負債が資産を277兆円上回る「債務超過」。国債発行残高の増加などで資産と負債の差額は05年度と比べ3兆円悪化した。財政再建による借金の抑制と保有資産売却などの圧縮を進めなければ、小泉政権以来、政府が目標に掲げてきた「小さな政府」の改革路線が揺らぐ可能性がある。

　06年度の超過額が増えたのは、資産が目減りしたにもかかわらず、それ以上に国債発行残高が増えて負債が膨らんだのが主因。資産は704兆円で、05年度より2兆7000億円減少。財政投融資改革によって、財務省が資金運用のために政策金融機関や独立行政法人に貸し付ける額が29兆円減ったためだ。

　一方、負債は同3000億円増の981兆円だった。郵便貯金による預託金などが30兆円余り減ったものの、国債や政府短期証券の発行残高がそれを上回って増加したためだ。赤字国債だけで10兆2000億円増えた。

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韓信協、合同会社を設立　会員組合の増資引き受け

　在日韓国人信用組合協会（韓信協）が会員信用組合の増資を引き受ける合同会社を設立した。年内にもあすなろ信用組合（長野県松本市）に対して2億円の資本支援を実施する。日本経済の停滞を受けて信用組合の経営環境は厳しさを増しており、業界内で迅速に資本支援する仕組みをつくることで経営状況の改善を目指す。

　合同会社の名称は「韓信協合同会社」。資本金は2億1000万円で、2012年までに10億円に増強する予定。韓信協は05年に韓国の中央銀行である韓国銀行から受けた低利融資156億円全額で、日本国債を購入しており、その運用益を資本金に充てる。韓信協は法人格を持たず直接出資できないため、新たに合同会社を設立した。

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東証デリバティブシステム、外部出身を責任者に

　東京証券取引所は7月のデリバティブ（金融派生商品）のシステム障害を受け、同システムの責任者に外部出身の幹部を登用する。これまで生え抜き社員が中心だった人事を刷新することで、大規模なシステム障害の再発を防ぐ狙いだ。

　近く金融派生商品のシステム責任者に就任するのは、ＮＴＴグループで全国銀行データ通信システム（全銀システム）を担当していた中途入社社員。東証は6月にも、次期システムの担当部長に外部出身者を起用しており、今後も出身にとらわれない人事を徹底する。

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小学館と集英社、漫画の海外出版拡大　09年秋にも欧州進出

　大手出版社が漫画事業の海外展開を加速する。小学館と集英社は共同で2009年秋にも欧州で漫画本の現地出版を始める。講談社も9月から米国で出版に乗り出す。海外で日本の漫画の人気は高まっている。国内市場縮小に直面する出版各社は、海外で新たな収益基盤の構築を急ぐ。

　小学館と集英社が共同出資する米国法人ビズメディアはすでに出版している米国に続き、欧州でも漫画本を出版する。人気漫画「ＮＡＲＵＴＯ」「デスノート」などを軸に検討。まずフランスで出版し、英国やスペインなどに順次広げる。

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エアコン販売、猛暑で２割増　６―８月中旬

　猛暑の影響で今夏のエアコン販売が台数・金額ともに前年に比べ増える見通しだ。調査会社のＧｆＫジャパン（東京・中野）によると、6月から8月17日までの国内販売台数は前年比18.2％増、販売額で同20.1％増だった。昨年7月は悪天候で販売が落ち込んだが、今年は7月の平均気温が高くエアコン出荷が好調に推移した。

　気象庁によると、7月の平均気温は戦後3番目に高い27度を記録。エアコン販売は7月7―13日が最も好調で台数・金額ともに昨年比約3倍だった。7月単月では台数が同74.5％増、販売額は77.1％増。8月（4―17日）は台数・金額とも前年割れとなったが、6―8月全体では前年の販売実績を上回る見通しだ。

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新日鉄など鉄鋼大手、鉄鉱石権益を共同買収へ　１兆円投資

　新日本製鉄、ＪＦＥスチールなど日本の鉄鋼大手は共同で、海外の鉄鉱石権益の買収に乗り出す。第1弾としてブラジル鉄鋼大手ＣＳＮが実施する鉄鉱石子会社売却の競争入札への参加を検討、アフリカ西岸地区での鉱山買収も候補に挙がっている。投資額は1兆円程度になるもようで、日本企業による資源投資としては過去最大規模。世界での資源高を受けて自ら鉱山を確保し、安定調達をめざす。

　新日鉄とＪＦＥ、住友金属工業、神戸製鋼所の4社を軸に企業連合を組み買収に乗り出す。伊藤忠商事も加わるほか、政府も国際協力銀行を通じた低金利融資で協力する方向で調整している。

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国交省：浄水場、上流へ移設　ＣＯ２削減目指し検討

　国土交通省は、水道施設からの二酸化炭素（ＣＯ２）排出量を削減するため、浄水施設配置の根本的な見直しに着手する。浄水場などを上流に移し、下流に向かって流れる力を利用して水を供給することで、大量のエネルギーを使うポンプの稼働削減を目指す。

　厚生労働省によると、０６年度に全国の河川などから１６２億トンを取水し、浄水場で処理して水道水１５５億トンを供給した。その際、使用した電力量は７９億キロワット時にのぼる。大半はポンプ稼働に利用したエネルギーが占め、国内のＣＯ２排出量の０・２％に相当する３１２万トンのＣＯ２が排出された。

　全国には５０００カ所を超える浄水場がある。沿岸から地域が発展した経緯から、多くが下流域に建設されている。ところが、上流域に住宅地が造成されるにつれ、ポンプで押し上げて水を配るケースが目立ってきた。

　そこで、国交省は物は低い位置に移動する物理の法則を活用し、取水施設や浄水場などを順次、上流に移すことの検討を始めた。今秋、実現可能地域の分析に着手し、来年度に選定した地域を中心に施設再配置の長期的な工程表をつくる。同省水資源計画課は「これまでの水道施設は温暖化対策の視点から造られてこなかった。３０～４０年かかる大事業だが、エネルギーの無駄をなくし、ＣＯ２削減に貢献するシステムを目指したい」と話す。

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厚労相、出産・検診の支援拡大を表明　費用軽減で少子化対策

　舛添要一厚生労働相は22日午前の閣議後会見で、出産費用への支援拡大を正式表明した。無料の妊産婦検診を現在の5回から最大14回まで増やすほか、分娩（ぶんべん）時に費用を病院窓口で支払わないで済む仕組みを検討する。少子化傾向に歯止めをかけるため、妊産婦の経済的な負担を軽減する。

　現行制度では費用の全額を国が負担する無料検診は5回まで。一方、出産までに望ましい検診回数は14回とされる。1回の検診には5000―1万円かかり、出産世帯には負担が重い。国の経済支援を拡大することで、子供を産みやすい環境づくりを目指す。厚労省は追加で必要な財政負担は840億円と見込んでおり、来年度実現を目指して財務省や総務省と折衝に入る。

　分娩時の費用も軽減する。健康保険の加入者は子供1人につき35万円の出産・育児一時金を受け取れるが、実際にかかる費用は地域で差がある。舛添厚労相は「妊産婦が病院にお金を払うのではなく、国から病院に自動的にお金が回る仕組みを考えたい」と語った。将来は出産にかかる費用を保険適用することも視野に入れている。

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公明の主張受け妊婦健診の助成拡大も
出産一時金の拡充検討

　舛添要一厚生労働相は２２日の記者会見で、少子化対策の一環として「お金のことを全く心配しないで（妊婦）健診も受けられ、分娩費用も出る（対策の）検討を開始したい」とし、公明党が強力に推進してきた「出産育児一時金」の拡充や「妊婦健診」の全額公費負担に取り組む考えを表明した。年末の予算編成に向け、具体案を検討する。

　出産育児一時金は、公明党が２００５年の衆院選マニフェスト（政策綱領）で「３０万円から５０万円への拡充」を掲げて推進、０６年１０月から現在の３５万円に拡充されている。厚労相は「東京では５０万円近く費用が掛かる」と地域の事情を考慮する考えを表明。また、「妊産婦が病院にお金を払うのではなく、国から病院に自動的にお金が回る仕組みを考えたい」とも述べた。

　一方、妊婦健診について、出産までに１４回程度の健診を受けるのが望ましいが、現在、国が地方交付税で措置しているのは５回相当分。健診は１回５０００～１万円かかり、経済的負担が重いことから、厚労相は最大１４回まで財政措置を増やすことも検討する意向を示した。
　子育て支援策の拡充で公明党は今月７日、厚生労働部会が厚労相に対し、０９年度予算概算要求に向けた重点要望で「出産育児一時金の更なる増額措置」と「妊産婦健診の公費助成回数の拡大」を要望していた。

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十和田湖、１３７年経て県境確定へ　「秋田４、青森６」

2008年8月23日21時23分

　秋田・青森両県にまたがる十和田湖。１８７１（明治４）年の廃藩置県以来決まっていなかった湖面上の県境が、１３７年を経て定まる見通しになった。十和田湖に面する秋田県小坂町、青森県十和田市と両県の間で２２日に初めて開かれた４者協議で、湖の面積を「秋田県側４、青森県側６」の比率で分割する方針が固まった。

　十和田湖の面積は約６１平方キロで国内１２番目の広さ。だが、これまで湖と湖周辺に県境の線引きがされていなかったため、各自治体とも国からの地方交付税算定の根拠となる面積に組み入れることができなかった。県境が画定すれば、両県と両市町で合計６千万～７千万円の地方交付税が上乗せされる見通し。一部は、湖周辺の環境保全などに使うことを検討しているという。

　十和田湖周辺の県境の線引きは、小坂、旧十和田湖（現・十和田市）両町の間で積年の課題だった。両町議会は０３年、合同で特別委員会を設置。「秋田４、青森６」の比率で分割する案で合意した経緯がある。旧十和田湖町の合併を経て、今回の合意に至った。今後測量などを行い、詳しい線引きを決める方針という。

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不満トップは残業と休み　労使とも十分対応できず
2008.8.23 19:55

　労組が過去５年間に組合員から受け付けた苦情や不満のうち最も多かったのは、残業や休日・休暇に関するものだったことが２３日、独立行政法人「労働政策研究・研修機構」の調査で分かった。仕事の負担が重くなり、企業だけでなく労組側も職場の不満に十分対応できていない実態が浮かんだ。

　調査は昨年１１～１２月に全国の１万労組を対象に実施、約２３５０労組から回答を得た。

　それによると、苦情・不満の内容（複数回答）で多かったのは「残業、休日・休暇」が７０％で、次いで「賃金、一時金」（６４％）、「仕事の進め方」（５８％）、「評価、査定」（５５％）の順。「セクハラ、パワハラ」は３２％だった。

　苦情・不満は増加傾向にあり、その理由（複数回答）は「仕事上の要求が厳しくなった」が最も多く６０％を占めた。

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Offshore withdrawals blow to LGT

By Haig Simonian in Zurich

Published: August 22 2008 23:22 | Last updated: August 22 2008 23:22

LGT, the Liechtenstein bank in dispute with Germany over stolen client data, admitted unwelcome publicity had prompted withdrawals from its core “offshore” wealth management operation.

A bank official confirmed local press reports that German clients were threatening legal action over the bank’s decision not to reveal that confidential data had been stolen.

The theft in 2002, and the more recent sale of stolen information to the German authorities about some customers of the bank’s trust subsidiary, has exposed clients to German tax investigations over undeclared income.

Some customers have considered legal action against the bank, on the grounds that, had they been informed of the theft, they might have benefited from a German tax amnesty in 2004 to come forward voluntarily. That would have exposed them to much less swingeing penalties than the ones they face now.

The LGT official defended the decision to conceal the theft and potential risk to clients, as it had been taken because the bank believed the perpetrator had been caught and the data retrieved.

He admitted there had been “complaints” from clients, some of whom had come to LGT with legal representatives.

But he said there had been no court action, and drew attention to a precedent where a Liechtenstein court had not supported plaintiffs in an earlier case of data theft.

The comments came as LGT announced net new money rose by SFr335m ($305m) for the first six months of the year, compared with SFr6.2bn in the same period last year. The figure followed the disclosure this year of modest outflows after the German disclosures.

LGT acknowledged the modest increase masked net withdrawals from its core “offshore” operation, outweighed by inflows to its growing international onshore network. LGT declined to break down the figures.

The bank, owned by Liechtenstein’s ruling family, said net profit had slipped by almost 10 per cent to SFr122.5m in the first six months, while total assets under administration declined by 7.3 per cent to SFr95.3bn.