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Stockland profit falls in tough conditions

After years of improving financial performance and low interest rates, the global economy and equity markets saw the biggest fall in quarterly profits in a decade on Tuesday.

The main banks and governments had the lowest profit growth, with earnings per share (EPS) falling by nearly three per cent year-on-year. The banks' average EPS fell 9 per cent, while Britain's City index fell 1.3 per cent in April, according to Thomson Reuters data.

Global stock market performance has been struggling in 2015, despite record profits. Inflation was forecast to remain relatively low for the rest of the year and stocks were still not in their all-time best shape.

"The slowdown in the UK economy, its high unemployment and low rate make it clear investors have become increasingly concerned about the economy's potential upside," said Andrew Reitz, senior global economist at JPMorgan. "If the EU referendum result doesn't hold a positive impact on British economic activity, however, it could have an impact on the broader markets."

The US Federal Reserve and European Commission said that with its current policies in place the global economy could face a return to high inflation in the future, potentially triggering a repeat of the financial crisis in the US that began about 2009.

In a note posted to the Reuters website, the Federal Reserve's John Williams said that low oil prices would mean that the Fed may not be able to keep interest rates low enough for financial stability in the future.

"There may not be another time for U.S. central bankers to hold long-term interest rates near zero, if in fact the U.S. economy and financial system can only function as a function of that one," Williams said.

As of March 31, the global economy was inching closer to "full employment", defined as three quarters of annual growth in the average of the leading industrialised countries, according to the US National Bureau of Economic Research.

Analysts at Capital Economics, a research firm in New York that focuses on the economy, forecast that the overall world economy, by 2017, could achieve a growth rate of 1.5 per cent, and 3.4 per cent if oil prices keep rising, setting it up for an even bigger rebound in the coming years.

In its note to clients, Credit Suisse, a Swiss bank, also warned that financial markets could be pushed into "a new round of bearish territory".

"With a weakening euro zone and weak dollar, the risks of falling oil prices, political uncertainty and slower growth worldwide are greater.

"While it is certainly an interesting period, the downside risk to investors is that markets could experience a return to more bearish levels."

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Tissue giant helps ease gas demand

By John A. Vignoli and J. Scott Applewhite

DUBAI, United Arab Emirates: The first of several planned wind farms in the UAE is nearing completion and is expected to provide 8.2 billion kilowatt hours (kWh) of electricity from a single plant, or enough to meet about 70 percent of the country's total electricity demand.

In addition, the project will allow the company to make a major effort to reduce emissions to the atmosphere and, if all goes well, will also help meet its target for reducing fuel consumption by 12 to 15 percent from 2010 levels by 2035 and provide around 4.6 billion tons of CO2 equivalent (tonnes) of economic and environmental benefits over the life of the project.

The UAE National Energy Authority (NEA), a project joint venture with German and Spanish energy majors Tepco (to which it is a licensee) and Royal Dutch Shell (to which it is a subcontractor), is aiming to achieve the same aims in the country by 2036.

"I am confident the UAE is poised for a huge increase in energy security," says A. M. Akwaib Shafiq, head of the NEA, who led a meeting of the project's five stakeholder groups with representatives from the government and business, and representatives of the private sector and the private sector firms. "This announcement shows that the energy security of the UAE is at the highest and best level."

The NEA believes the development of its new gas field can be a positive part of efforts to reduce emissions. At the same time, Shafiq acknowledges the difficulty of achieving the ambitious target: "At the moment, when the project is under construction, we are experiencing an unexpected windstorm."

He hopes the windstorm will have calmed by the end of 2015 and that the construction of the new gas field will start up in earnest in 2016. However, Shafiq admits that progress must be made before the windstorm will be quietened: "The windstorm could be over in three weeks. We must be ready in time to take the

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