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Athens/Rome: With efforts to patch together a Greek government looking doomed, EU policymakers warned the country it could not remain in the Eurozone if it ripped up its bailout programme, and financial markets ratcheted up the pressure on the bloc.

Eight days after inconclusive elections, Greece’s political parties have failed to form a coalition and opinion polls show that anti-bailout parties would perform most strongly in a fresh vote which is likely next month.

Last ditch talks led by President Karolos Papoulias yesterday looked unlikely to make headway after the leader of the radical leftist Syriza party said he would not attend and another left-wing leader refused to take part in any coalition without him.

Stern warning

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Sometimes it pays to ditch the office and stay home or go to a cafe. At least that’s what many so-called telecommuters across Lebanon have discovered, as an increasing number do their work from the convenience of … anywhere.

“I can be sitting by the pool with my notebook and for me it’s work,” says strategic manager Ibrahim Nehme, who insists that he can be even more productive by the pool than at the office. He is one of many people in recent years who have embraced working outside the office. After enduring a high-stress corporate job, Nehme now enjoys the relaxed atmosphere of cafes and other venues of his choosing.

Telecommuters say they cherish the freedom of working at any location, away from the constant monitoring of bosses and the crush of daily commutes. Some are set at ease by the comforts of home, others find inspiration from the buzz of a cafe – and a few high-rollers don’t mind performing their tasks in the temporary surroundings of a hotel or even an airplane. But many of those who work away from home caution that the practice requires strong self-discipline, focus and a good relationship with colleagues.

“You need to be able to concentrate well,” explains Nathalie Bucher, project coordinator for the Arab Puppet Theatre Foundation in Beirut and also writes freelance articles for publications in South Africa. “Especially in spaces that are not always quiet. And you need to be able not to lose your string when you get interrupted.”

“It is not an easy thing to do,” she admits, “but it is really important to do it when you want stuff done: to merely greet someone you know [with], ‘Kifak, good, and you? Fine, fine,’ and then lower your head again and carry on working as opposed to chatting a while with everyone who walks in [whom] you know.”

Despite the challenges of working outside the office, it appears that the practice will only grow worldwide, including in Lebanon, as people become more mobile, Internet connection improves and companies increasingly accept the idea of employees producing and filing work remotely.

“Employers are now more tolerant of people working outside the office, especially with all the tools available,” observes Tony Feghali, associate professor of business information and decision systems at the American University of Beirut. â€œIt’s going to be on the rise,” he predicts, “especially for educated women who can clock into the office two to three times a week and then do the rest of their work from home, while juggling their family obligations.”

According to the human resources research NGO Worldatwork, in 2008 17.2 million people in the United States practiced part-time telecommuting, while 2.5 million considered their home their primary place of business. The phenomenon is on the rise in various sectors – including education, journalism, advertising and consulting.

Some companies have found that offering the option of working remotely widens their talent pool, allowing for contributions by people from rural areas, those who have disabilities and others who prefer to stay home because of family obligations. Meanwhile, many employees confirm that the option to work remotely is an attractive recruiting tool.

“When I first started my job, I told them I would need to travel for three to four months out of the year,” says remote participation consultant Bernard Sadaka, who works for three different companies outside of Lebanon, mainly from his home in Zahle. Of course, he has taken certain precautions – such as securing 3G as a back-up to Lebanon’s sometimes unreliable Internet connection.

For Sadaka, the hectic schedule is worth the freedom that comes with working from home, and he manages to divide his time between his three consulting jobs. Yet although he prefers such an approach to a conventional 9-5 undertaking, he acknowledges there are pitfalls to not working in an office. These include the lack of a set daily schedule, meaning he often runs errands during the day and works late at night. He also acknowledges that working for multiple companies makes it difficult to plan a vacation or even have a free weekend, and rarely generates camaraderie among colleagues.

For Micheline Tobia, editor of Mashallah news who spends most of her days working at cafes, the distraction of people is a double-edged sword. While running into people can slow down her work, she has also found cafes to be great places for networking, having recruited several writers for Mashallah through meeting people over coffee. She also likes the familiarity of seeing many of the same people daily at cafes. â€œEvery day, I see the same people coming into the cafes, and I say ‘hi’ to them without knowing much about them,” she says.

For their part, the cafe managers say they are fond of their regular customers. Wissam al-Hassanieh, regional manager of the Coffee Bean and Tea Leaf on Hamra Street, says that 70 percent of the establishment’s customers are regulars, and he knows many of them by name. He says it doesn’t bother him if they just order coffee, because they tend to return several times throughout the day.

Similarly, Moustapha Broush, assistant manager at Brisk, also on Hamra Street, maintains he has no problem with customers sitting all day and working, although in the rare instance that someone is just drinking tea at a large table, he might ask the person to move to a smaller table to make room for other customers.

In fact, most telecommuters interviewed say they often eat two of their day’s meals at the cafe where they’re working, lamenting the price they pay for the freedom of working away from an office. But for most, the benefits appear to outweigh the costs. â€œPersonally, I just can’t imagine myself reporting to an office every morning or having a boss behind my back,” says Nehme.

“Telecommuting allows me to be freer, happier, more inspired and have more control over major aspects relating to my life. Even if the workload can sometimes be intense and you spend a lot of your time working alone, the rewards that you get from having a free and flexible schedule trump all the negatives.”

* Has announced plan to sell international businesses

* Ally has multiple ways to pay U.S. Treasury -CEO

* ResCap gets court approvals to keep operating

By Rick Rothacker and Caroline Humer

May 15 (Reuters) – Ally Financial is “absolutely not”
looking to sell its core U.S auto lending business as it seeks
ways to pay back $12 billion it owes to U.S. taxpayers after a
government-funded bailout during the financial crisis, the
company’s CEO said Tuesday.

Ally, the former in-house financing arm for General Motors
Co once known as GMAC, on Monday announced plans to sell
some international operations at the same time that its
Residential Capital mortgage unit filed for bankruptcy
protection.

ResCap, as the mortgage unit is called, received court
approvals at a Tuesday hearing in New York that will allow it to
stay in business while in bankruptcy. Under its bankruptcy plan,
ResCap will be able to preserve its mortgage servicing
operations and other assets pending their planned sales.

At the same time, the bankruptcy judge overseeing the
hearing raised questions about the mortgage lender’s plans to
halt all home equity loans to its retail customers while in
Chapter 11. ResCap attorney Lorenzo Marinuzzi said in court that
the company cannot afford the possible total payout of $400
million if the outstanding home equity lines were drawn down.

“My concern is that you are dealing with retail borrowers
all over the country in a way that will cause consternation and
confusion, and I think that they should know more than that they
are out of luck,” said U.S. Bankruptcy Judge James Peck.

Peck said that ResCap, once a major subprime lender and
profit generator for Ally, must submit to the court a copy of
the letter it plans to send to customers about their credit
lines. He also said the company must provide customers with
details about their rights in bankruptcy.

RESCAP ISSUES

The ResCap bankruptcy and planned sale of some international
assets will give Ally flexibility to find ways to repay the $12
billion in U.S. government bailout money, CEO Michael Carpenter
told analysts on a conference call.

Ally could still pursue an initial public stock offering,
find private-equity firms to buy out the U.S. Treasury’s stake,
release capital or pursue acquisitions, Carpenter said.

“We will have created optionality and opportunity as a
result of these steps,” he said.

Detroit-based Ally last year filed for an IPO, but shelved
those plans after its mortgage woes mounted and the European
debt crisis roiled markets. That has led to speculation that the
company might have to sell itself as a whole or in pieces to pay
back taxpayers.

Ally has repaid about one-third of the $17 billion it
received from the U.S. government and expects to return another
third after selling its international auto, banking and
insurance operations. Ally’s recovery from the financial crisis
has been dogged by losses and lawsuits tied to ResCap.

Earlier this year, ResCap and Ally were part of a settlement
with state attorneys general and the U.S. Department of Justice
regarding allegations that its employees “robo-signed”
foreclosure documents without proper reviews.

On Tuesday, ResCap received court approval to continue with
41,000 pending foreclosures.

SEPARATE ENTITIES

As part of the bankruptcy filing, Ally reached a $750
million settlement with ResCap that executives said will release
the parent company from mortgage-backed securities lawsuits.

Carpenter emphasized that Ally and ResCap are separate
entities, a potentially key issue during the bankruptcy.

“We believe the liabilities of ResCap do not penetrate to
Ally,” he said. “The purpose of the payment we are making is not
because these claims concern us but frankly to put the whole
issue behind us.”

Nationstar Mortgage Holdings Inc, which is
majority-owned by Fortress Investment Group LLC, struck
a deal to buy mortgage-servicing and related assets from ResCap
for about $2.4 billion, including debt, in bankruptcy.

Ally also agreed to bid $1.6 billion for a portfolio of
ResCap-owned mortgages. Carpenter said it is likely that Ally
will be outbid.

As part of the bankruptcy plan, Ally’s banking subsidiary
has also agreed to negotiate the potential sale of its mortgage
servicing rights in conjunction with ResCap’s other asset sales.
Ally Bank’s mortgage servicing rights – the right to collect
payments from borrowers – were valued at $1.3 billion at the end
of the first quarter.

The Third Saudi Insurance Summit, an IIR Middle East event, closed on the 20th of May after four days of panel discussions and exploration of emerging trends, the effect of the global financial crisis and analysis of the fastest-growing insurance market in the GCC region.

Delegates came away from the summit informed of the challenges and opportunities facing the Saudi insurance market, with the benefit of expert knowledge gleaned from eminent speakers.

The figures confirmed the potential of the insurance market in the most-populated country in the GCC, as well as highlighting how the sector is becoming more competitive.

Following the opening speech, delegates were able to attend and participate in panel discussions given by leading experts in the Saudi insurance sector.

The discussions went on to explore the status of the insurance market in general, and the challenges and the opportunities in detail, especially those presented by increasing levels of competition and regulation.

Speakers included Prakash Abraham, Business Advisory Manager, Oracle, who examined the global insurance industry and the trends within it, including changing business models and working methods, increasingly tough regulations and rising consumer power.

“These findings help to provide a guide for insurance companies who wish to remain at the forefront of the sector,” said Abraham. “The challenges in being able to provide a delivery platform for Next Generation Insurance are far outweighed by the benefits of being better-placed to capitalise on the potential of the KSA insurance market.”

The growing importance of regulation in the Saudi insurance market was explored by Chris Symeonidis, Chief Executive Officer and Deon Kotze, Director of Manar Sigma Financial Consulting. ‘An Actuarial Perspective: Securing sustainable growth through cutting-edge regulation’ gave an overview of Sama’s regulatory framework, examined how this is in line with international regulatory best practice and emphasised how the rapid growth of the insurance market in the Kingdom must be carefully managed in order to maximise the benefits for industry players and their customers.

Further insight into the increasing importance and huge potential of the Saudi insurance sector was provided by David Anthony, Director – Mena Insurance, Standard and Poor’s in his presentation ‘The analysis and rating of Saudi Arabian insurers and reinsurers’. Simon Fisher, Director – Insurance Management, Heritage London & Middle East examined the positive outlook for captive insurers in the Kingdom.

Additional key speakers at the Summit included: Dr Saleh Malaikah, Chairman of Salama, Ali Al Subaihin, CEO of Tawuniya, Ayman El Hout, General Manager of Medgulf, Tal Nazer, Managing Director of Bupa Arabia, Dr Abdullah I. Al Sharif, General Secretary, Council for Cooperative Health Insurance (CCHI), Zeed Al Rubian, Risk Management Officer, Saudi Telecom Company, Isaaq Awad Sahhar, Director – Construction and Engineering Division, United Insurance Brokers Ltd., and Sam Thanvi, Group Head – Takaful of Bank Al Jazeera.

The five interactive panel discussions encouraged a frank and open exchange between members of the panel, allowing delegates to benefit from invaluable insights and the featured speakers’ expertise.

The panel discussions covered topics such as the effects of the global financial crisis on the worldwide insurance market, how the formation of a competitive Saudi insurance industry is being affected by current economic conditions, corporate risk and internal insurance management, what the health is of the Saudi health insurance market and a review of the regional and local reinsurance and Takaful landscape amid a changing environment.

New Delhi: Indian inflation unexpectedly accelerated in April, crimping the central bank’s scope to bolster economic growth by extending interest-rate cuts. Stocks fell, erasing earlier gains.

The benchmark wholesale-price index rose 7.23 per cent from a year earlier, after climbing 6.89 per cent in March, the Ministry of Commerce and Industry said in a statement in New Delhi yesterday. The median of 32 estimates in a Bloomberg News survey was for a 6.67 per cent gain.

Reserve Bank of India governor Duvvuri Subbarao signalled last month that inflation might limit the room for further cuts after he slashed the benchmark rate by half a percentage point, flagging price risks from the fiscal deficit, energy costs and a weaker rupee. Greece’s political turmoil and a deepening debt crisis in Europe are increasing pressure on Asian nations to support growth as exports falter from Taiwan to Malaysia. China cut banks’ reserve requirements on Saturday to revive demand.

Policy dilemma

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With the opening of the London Olympic Games just a few short weeks away, has the much-heralded regeneration of large parts of East London made the area a viable target for property investors in the Middle East?

According to recent research from Lloyds TSB, house prices near the main site of the London 2012 Olympic Games have increased by more than $96,000 on average since July 2005. The UK capital was awarded the Games six years ago and since then nearby house prices have increased by around 30%, with homes in Dalston and Homerton in Hackney enjoying the greatest rises at 55 percent.

So does East London represent a viable opportunity for Middle East investors looking to snap up property in one of the world’s great cities?

“Traditionally overseas investors, whether from the Middle East or elsewhere, have always wanted fairly quick turnaround in capital gains, and historically the data shows that the biggest gains in capital values and uplift in yield, has always been Central London,” says Robert Pearce, Director at IP Global, a Dubai-based real estate investment firm which sells property in London, the US and Asia.

“When presented with the historical evidence, they gravitate towards what the data says,” he continues. “However, although East London isn’t a particularly well-known area to Middle East investors, it represents a long-term opportunity for all property investors as long as they’re willing to see the fundamental drivers.”

Following the Olympic Games, the Olympic Village is set to be converted into the East Village, offering 2,800 flats and houses; over the next 10 years a further 8,000 homes are planned to be built around the Olympic Park. In Stratford, home of the Olympic Park, an extensive redevelopment programme will add 80% to the stock of houses in the area.

According to Pearce, East London represents a greater risk and sits on a longer growth curve than some more central areas of the UK capital, “for example 12-15 years from trough to peak, as opposed to 10-12 years in core London”.

And yet the unrest of the Arab Spring, as well as ongoing violence in Syria and uncertainty in Libya, Egypt and elsewhere, has prompted many regional investors to look to London at a time when they might otherwise have splashed the cash closer to home. Moreover, they are looking to invest in London property without breaking the bank.

“There are many developers in the UK that bring their projects out to the Middle East, touring the region and running roadshows,” says Pearce. “Their push is that their price point is significantly lower than the Central London average. It’s an opportunity for investors who are not heavy on cash to get into the London market, which has safe-haven status for a lot of GCC and Middle Eastern investors.

“It’s a notoriously safe market in terms of its legal framework, the pound is relatively undervalued against the US dollar, and there are definitely price point opportunities,” he continues. “Individual middle eastern investors, those who can’t afford to get into the likes of Islington and Westminster, have definitely been buying stock.

“We’re talking one- or two-bed apartments in developments of maybe 40 or 50, built by developers who have brought brown-field sites,” he adds. “Some of them are conversions of existing buildings, warehouses for example, but the key difference is that the price point is reflective of the area. The further east you go, you don’t get the transport links that you do in central London, and that’s why you pay a little less.”

In the longer term, there is cause for encouragement in this regard, particularly in view of the significant transport system upgrades that have arrived in time for the start of the Games.