Business 13 SATURDAY 17 APRIL 2021 New CEO Orcel calls for discipline, rigor in letter to UniCredit staff Throughout, UniCredit has been ever present as a key client, so in many respects, I feel as though I am coming home.

Andrea Orcel UniCredit Chief Executive Officer Business | 14 QSE 10,899.06 +293.68 (2.77) FTSE 100 7,019.53 +36.03 (0.52%) DOW 34,201.99 +166.00 (0.49%) BRENT $66.73 (-0.21)

World stocks set record high on strong China, US data

REUTERS — becomes more entrenched, course for their first substantial fuelled by continued fiscal weekly gains in six. Global stocks hit a record high stimulus and ultra-loose mon- Government stimulus, a Despite the strong data, US yesterday and oil climbed after etary policy, we think this should string of strong corporate bond yields dropped, in part strong US and Chinese economic translate into continued positive earnings releases and signs driven by buying from Japan, data bolstered expectations of a UK equity market performance,” which began a new financial solid global recovery from the said Nick Peters, multi asset port- of economic recovery in year this month. The 10-year US coronavirus-induced slump. folio manager, Fidelity countries ahead in the Treasuries yield was last at 1.573 Government stimulus, a International. COVID-19 vaccination race percent. string of strong corporate US stock futures pointed to have all helped push stock “We retain a modest short earnings releases and signs of a mixed open on Wall Street, markets onto new heights in position in US rates and would economic recovery in countries with those for the S&P 500 up be inclined to add to this should ahead in the COVID-19 vacci- 0.1 percent and Nasdaq futures recent days. Driving the move yields drop towards 1.5 percent nation race have all helped push down 0.1 percent. Overnight, was Chinese data showing on the 10-year part of the yield stock markets onto new heights Asian markets had tracked a path record 18.3 percent growth in curve,” said Mark Dowding, chief A man looks at a list of the best performing stocks, seen on a display in a in recent days. “As the economic similar to Europe’s. MSCI’s investment officer at BlueBay window of the UBS headquarters in Zurich, Switzerland, on Wednesday. the first quarter. re-opening accelerates in the broadest index of Asia-Pacific Asset Management. coming months, we believe the shares outside Japan was last up In the currency market, bull market remains on a solid 0.5 percent, with Shanghai strategist at Nordea Asset stop the economy overheating. benefits, which tumbled last lower US yields were a drag on footing,” said Mark Haefele, chief shares adding 0.8 percent and Management. The strong Chinese data had week to the lowest level since the dollar overnight, and the investment officer, UBS Global Japan’s Nikkei up 0.1 percent. “As the US economy and then followed similarly upbeat March 2020. dollar index ebbed in late Wealth Management. Driving the move was European economies open up, it numbers out of the All of which initially helped morning trade in Europe to be MSCI’s broadest gauge of Chinese data showing record 18.3 should further help Asian overnight. Retail sales rebounded oil prices push on, hitting one- down 0.2 percent. The was world stocks edged higher in percent growth in the first exports. This should support 9.8 percent in March, pushing the month highs thanks to the eco- up 0.2 percent at $1.1989, having early European trade, up 0.2 quarter, though the reading Emerging Market and APAC level of sales 17.1 percent above nomic data and higher demand hit a six-week high of $1.19935 percent to a record high. Europe’s slightly undershot expectations. equities as well as China equities its pre-pandemic level to a forecasts from the International overnight. The pound was down top indexes all opened higher, led Retail sales bounced strongly last and fixed income.” Despite the record high. Energy Agency (IEA) and OPEC, flat at 1.3791. Gold bounced off by Britain’s FTSE 100, up 0.5 month. “We remain focused on punchy GDP number, gains were The brightening economic before pulling back. Brent futures session lows to trade up 0.8 percent and passing 7,000 points a China-led rebound steadily tempered by the view that prospects were underscored by were last flat at $66.94 per barrel. percent to pass its previous for the first time since February helping the Asia-Pacific region,” Beijing will act to rein in the brisk other data, including first-time US crude was down 0.1 percent seven-week high at $1,777.9 per 2020. “As the global recovery said Sebastien Galy, senior macro expansion later in the year to claims for unemployment at $63.4 per barrel, both on ounce. Building sales take over 83.8% of weekly realty activity: Ezdan Report THE PENINSULA — DOHA showed that the registered property Registration Department. and was sold at a price per square foot sales reached QR783m and were dis- Al Rayyan Municipality ranked first of QR503. Qatar’s weekly property market has tributed among 7 municipalities in terms of value through the sale of a Ezdan Real Estate Company runs witnessed a significant surge in the including Umm Salal, Al Khor, Al Dha- residential building in Al Rayyan Al more than 22,800 residential units, and volume of building sale deals which khira, Doha, Al Rayyan, Al Shamal, Al Jadded at QR421.4m. The building around 790 commercial units inside stood at QR656.3m, or 83.8 percent of Daayen, and Al Wakra, and included spans over an area of 23,484sqm and Doha and its environs, including Al the total sales volume, while land lots the sales of vacant lands, residences, was sold at QR1,667 per square foot. Wakra and Al Wukair. The company generated up to QR126.9m, or about multi-use buildings, multi-use land lots Doha also has seen the sale of a res- continues to invest in the real estate 16 percent of the total sales, according and residential buildings, according to idential compound in the Fereej Al- sector and contribute to real estate to Ezdan Real Estate report. the data gleaned from the real estate Asiri area, at a value of QR83m, development in the State of Qatar on The market activity from April 4-8 bulletin released by the Real Estate extending over an area of 15,312sqm, a large scale. Google misled consumers over data collection, says Australian watchdog

REUTERS — SYDNEY information from the quoted the ACCC chairman location history setting on Rod Simms as saying that Australia’s federal court user devices between the regulator would seek a found Alphabet’s Google January 2017 and December penalty in the “many mil- misled some consumers 2018. A setting to control lions”. A Google spokesman about personal location web and application said the company was data collected through activity, when turned on, reviewing its options. Android mobile devices, also enabled Google to “The court rejected the country’s competition collect, store and use the many of the ACCC’s broad regulator said yesterday. data and was turned on by claims. We disagree with The Australian Compe- and others that big busi- default on the devices. the remaining findings and tition and Consumer Com- nesses must not mislead Users were not are currently reviewing mission (ACCC) said it is their customers,” ACCC informed that turning off our options, including a seeking declarations and Chair Rod Sims (pictured) location history but leaving possible appeal,” the penalties from Google, said in a statement. the “Web & App Activity” spokesman said. though it did not specify an The case revolves around setting on would allow The tech giant has been amount. specific Google settings Google to continue to collect embroiled in legal action in “This is an important related to its location data data, the court found. Australia in recent months victory for consumers, espe- collection, location history The court will need to as the government mulled cially anyone concerned and ‘web & app activity’. decide what it considers a and later passed a law to about their privacy online, The court found that breach and how many make Google and Facebook as the Court’s decision sends Google wrongly claimed it occurred but the Australian pay media companies for a strong message to Google could only collect Broadcasting Corp (ABC) content on their platforms. Turkey bans crypto payments citing risks

REUTERS — ANKARA regulation and supervision mechanisms nor a central regulatory authority,” among other security risks. Turkey’s central bank banned the use of cryptocurrencies “Payment service providers will not be able to develop and crypto assets to purchase goods and services, citing business models in a way that crypto assets are used possible “irreparable” damage and significant transaction directly or indirectly in the provision of payment services risks in a move that cooled global bitcoin prices. and electronic money issuance,” and will not provide In legislation published in the Official Gazette yes- any services, it said. “Their use in payments may cause terday, the central bank said cryptocurrencies and other non-recoverable losses for the parties to the transac- such digital assets based on distributed ledger technology tions... and include elements that may undermine the could not be used, directly or indirectly, as an instrument confidence in methods and instruments used currently of payment. in payments,” the central bank added. Turkey’s growing crypto market has gained This week Royal Motors, which distributes Rolls-Royce momentum in recent months as investors joined a global and Lotus cars in Turkey, became the first in the country rally in bitcoin, seeking to hedge against lira depreciation to say it would accept payments in cryptocurrencies. Glo- and inflation, which topped 16 percent last month. Bitcoin bally, giants such as Apple, Amazon and Expedia also accept was off nearly 3 percent at $61,490 versus the dollar at such payments. Crypto trading volumes in Turkey hit 218 0754 GMT after the Turkish ban, which was criticised by billion lira ($27bn) from early February to 24 March, up the main opposition party. In a statement, the central from just over 7 billion lira in the same period a year earlier, bank said crypto assets were “neither subject to any according to data from US researcher Chainalysis. 14 BUSINESS SATURDAY 17 APRIL 2021

China launches Oil holds near $67, heads for weekly gain 1st class-action REUTERS — LONDON and the Organization of the lawsuit in war Petroleum Exporting Countries Oil held near $67 a barrel Oil has recovered from (OPEC) both made upward revi- against fraud in yesterday and was heading for pandemic-induced lows last sions to oil demand growth a weekly gain as a stronger forecasts for 2021. year, helped by record cuts to corporate sector demand outlook and signs of Figures on Wednesday also economic recovery in China and oil output by OPEC and its showed US crude inventories the United States offset rising allies, a group known as fell by 5.9 million barrels. REUTERS — SHANGHAI COVID-19 infections in some OPEC+. Some of the OPEC+ Demand hopes offset other major economies. cuts will be eased from May concern about rising corona- China launched the country’s China’s first-quarter gross virus cases in other big econ- first class-action lawsuit against and the group meets on April domestic product jumped 18.3 omies. India’s infection rate hit a listed company yesterday, percent year on year, official 28 to consider further tweaks a record high while Germany’s targeting Kangmei Pharmaceu- data showed yesterday. On to the supply pact. chancellor yesterday said a tical, as regulators vowed “zero Thursday figures showed a rise third wave of the virus had the tolerance” against accounting in US retail sales and a drop in country in its grip. fraud and other capital markets unemployment claims. a barrel at 1340 GMT. It was Oil has recovered from pan- “tumors”. Oil field technicians work with a drill at a rig of Ecuador’s state oil “Given the improving heading for a weekly gain of 6.2 demic-induced lows last year, The China Securities company Petroamazonas, in Tiputini, Ecuador. outlook for the world’s two percent after rising in the past helped by record cuts to oil Investor Service Centre (CSISC), biggest economies, there is little four sessions. US West Texas output by OPEC and its allies, a a government-affiliated body, chance of the market’s feel- Intermediate (WTI) crude fell election interference and costs and general uncertainty group known as OPEC+. is suing Kangmei on behalf of good glow being extinguished 10 cents, or 0.2 percent, to hacking could also support in trade with Russia,” said Some of the OPEC+ cuts will more than 50 individual any time soon,” said Stephen $63.36. prices. Eugen Weinberg of be eased from May and the investors in a landmark case in Brennock of oil broker PVM. New US sanctions imposed “Though they do not affect Commerzbank. group meets on April 28 to con- China’s capital markets, the Brent crude was down 8 on Russia, one of the world’s top the oil sector directly, they Helping the rally this week, sider further tweaks to the China Securities Regulatory cents, or 0.1 percent, at $66.86 oil producers, over alleged could lead to higher financing the International Energy Agency supply pact. Commission (CSRC) said. Kangmei was engaged in intentional and systematic financial cheating worth 30 Cathay Pacific to cut cash burn billion yuan ($4.60bn) between 2016 and 2018, CSRC said, REUTERS — SYDNEY adding “toxic tumors” in capital markets must be eradicated Hong Kong’s Cathay Pacific swiftly, and relentlessly. Airways said yesterday a relax- Kangmei could not be ation of quarantine require- immediately reached for ments for its cargo crews would comment outside business help to boost air freight capacity hours. and lower its cash burn at a time China introduced the class- when it has only a skeleton action mechanism to capital People take photos by the Morgan Stanley building in Times Square passenger service. markets last year as part of in New York City, New York, in the US. The airline had previously efforts to crack down on cor- said rules that took effect on porate malfeasance and bolster February 20 and required most investor confidence. A passenger walks to the First Class counter of Cathay Pacific crew to quarantine for two Although corporate fraud is Morgan Stanley profit Airways at Hong Kong Airport in Hong Kong, China. weeks in hotels before returning not uncommon in China, retail to normal life in Hong Kong investors have historically had blows past estimates would increase cash burn by business while also progressively Hong Kong government’s stated little chance to make their about HK$300 million to reducing our monthly operating intention of lifting the man- voices heard. Small investors HK$400 million cash burn.” Shares were up 1.1 datory quarantine period for often likened legal action to REUTERS — NEW YORK Morgan Stanley said net ($38.62m-$51.49m) per month, percent in trading before the travellers from mainland China ants fighting elephants. income applicable to share- on top of the regular HK$1 billion announcement. and reducing it for those arriving Still, CSRC said yesterday Morgan Stanley reported a 150 holders rose to $3.98bn, or to HK$1.5 billion levels. The airline said there had from low- and medium-risk that the new class action mech- percent jump in first-quarter $2.19 per share, in the quarter “Just this week, the gov- been zero positive COVID-19 places was a positive step in the anism would greatly reduce profit yesterday that sailed past ended March 31, from $1.59bn, ernment announced that it tests this year among the more right direction. investors’ cost of suing listed expectations, as a global deal- or $1.01 per share, a year ago. would lift the mandatory quar- than 18,500 tests its operating Cathay reported a record companies and help reduce making boom boosted Analysts were looking for a antine requirement for fully vac- Hong Kong-based crew had cargo load factor of 86.4 percent malpractices in China’s capital and profit of $1.70 per share, cinated Hong Kong-based taken in the days following their in March, though freight carriage market. heightened trading activity according to IBES data from aircrew on freighters and cargo- arrival in Hong Kong. fell by 29.6 percent from a year Unlike the US system, class lifted its institutional securities Refinitiv. only passenger flights from Cathay carried just 18,539 earlier. Nearly 60 percent of actions must be launched by division. Net revenue jumped 61 today,” Cathay Chief Customer passengers in March, having cut Cathay’s 2020 revenue of government bodies such as The Wall Street power- percent to $15.72bn. and Commercial Officer Ronald capacity by 47 percent from Feb- HK$47.9 billion was from its CSISC, and only typical and house, however, recorded a Like bigger rival Goldman Lam said. “This will have a pos- ruary due to the crew quarantine cargo operations, up from about major cases are selected total one-off loss of over Sachs Group, Morgan Stanley itive impact on our cargo rules. However, Lam said the 20 percent in 2019. initially. $900m that it said was related benefited from an unprece- to a credit event and subse- dented boom in dealmaking quent losses from “a single through special purpose acqui- prime brokerage client.” sition companies (SPACs). South Africa business groups to help vaccinate 160,000 a day Morgan Stanley was one of six Global investment banking banks who had exposure to fees hit an all-time record of BLOOMBERG providers and others, Martin capacity to inoculate 50,000 South Africa vaccinated Archegos Capital Management, $39.4bn during the March Kingston, chairman of B4SA’s people a day. 292,623 health-care workers as a family office fund that quarter, according to data from South Africa’s biggest business steering committee, said yes- The announcement was of April 15. defaulted on margin calls late Refinitiv. grouping will help develop terday in an online press con- made as South Africa began B4SA’s members, which last month and triggered a Morgan Stanley conceded private industry’s capacity to ference. “No citizen will be asking people over the age of 60 include Business Unity South firesale of stocks across Wall the second position in the administer 160,000 coronavirus denied,” he said. to register for the vaccine. The Africa, Business Leadership Street. league tables to JPMorgan vaccinations a day, according to South African financial- country has been slow to roll out South Africa, the Black Business Despite that setback from Chase & Co during the quarter, Business for South Africa. services group Discovery previ- its vaccination program and has Council and the Banking Asso- the one-time loss, overall according to Refinitiv, but still Vaccines will be adminis- ously said it has plans in place to now had to pause the distri- ciation of South Africa, are results comfortably beat expec- raked in robust investment tered at pharmacies, employer vaccinate 3 million of its med- bution of doses because of working closely with the tations, wrapping up a robust banking fees - the league tables premises and large-scale sites ical-insurance members against uncertainty about Johnson & Department of Health to build quarter for Wall Street’s biggest rank firms on developed by medical-insurance the coronavirus, with the Johnson inoculations. capacity, Kingston said. banks that benefited largely the amount of M&A fees they from reserve releases, record generate. capital markets activity and a Investment banking surge in trading. revenue more than doubled to Eskom’s two biggest labour unions demand 15% wage increase The spike in trading $2.6bn, driven largely by the volumes during the first quarter volume of such deals. BLOOMBERG workers of South Africa and the National text message. South Africa’s consumer of 2021, driven by a Reddit- Morgan Stanley also gen- Union of Mineworkers tabled their demands inflation rate is currently 2.9 percent. fueled trading frenzy in erated handsome underwriting The two biggest unions representing workers at a preparatory meeting yesterday and pay Eskom is struggling to meet electricity “meme” stocks like GameStop, fees from numerous high- at Eskom Holdings are seeking 15 percent talks will resume on May 4, Eskom demand due to breakdowns at its old and drove a 66 percent jump in profile IPOs of companies such wage increases, adding to the woes spokesman Sikonathi Mantshantsha said by poorly maintained plants and isn’t gener- revenue at Morgan Stanley’s as Affirm Holdings and confronting the loss-making South African phone. Solidarity, a smaller union, wants 9.5 ating enough cash to fund its operations and institutional securities business. AppLovin Corp. power utility. The National Union of Metal- percent increases for its members, it said by service its 464 billion rand ($33bn) of debt. Europe car sales surge 63% in March New CEO Orcel calls for discipline, BLOOMBERG Stellantis and Renault. “Only the critical global supply situation for various semiconductor cate- rigor in letter to UniCredit staff Europe’s auto sales soared last month from a gories currently has a limiting effect on this depressed level a year ago, making up for a dismal upswing,” VW Chief Executive Officer Herbert start to the year even as virus-related restrictions Diess said at the Hannover Messe trade fair BLOOMBERG Orcel, who had been waiting for persisted in key markets. Thursday. a chance to run a top lender for New car-registrations rose 63 percent in March, March tends to be a seasonally strong time of UniCredit Chief Executive Officer years, it marks a return to the the European Automobile Manufacturers’ Associ- year for Europe’s auto industry, so registrations Andrea Orcel (pictured) gave the firm he helped create more than ation said yesterday. The gains erased an early- were still about 13 percent below what the industry bank’s 82,000 employees his two decades ago. year decline to leave sales up 0.9 percent for the averaged for the month in the decade before the first insight how he’ll run the “This is the culmination of quarter. pandemic, according to the ACEA. While Italy - Italian lender, saying his ambi- my career in banking, an While automakers are benefiting from easy the epicenter of Europe’s initial virus outbreak - tious plans will be built upon industry I started in at the age of comparisons to a year ago, when countries were saw sales rise almost 500 percent last month, they “discipline and rigor.” In his first 25,” Orcel said. Beyond reducing locking down to contain the spread of COVID-19, remained 12 percent below 2019 levels as virus- letter to employees the new CEO the bank’s complexity, simpli- last month’s sales stack up well even relative to related measures curb economic activity. - known for his tough work ethic demanding hard-worker. Anec- fying decision-making and pre-pandemic. The 1.39 million vehicles registered Carmakers have been coping with restrictions while head of UBS Group’s dotes within the industry adopting new technologies, was the highest since June 2019. by moving sales processes online and taking investment bank - said UniCredit abound, from his demands that Orcel faces some very specific Carmaker shares lifted on sales regaining advantage of government subsidies for electric should become a “disruptor” that subordinates log a certain challenges going forward. He momentum and Daimler reporting better-than- vehicles. Economic forecasters have said the con- innovates and breaks down number of client calls per week, inherits a leaner bank, but con- expected earnings for the first quarter. The Mer- tinent’s growth prospects rest on a vaccination internal barriers that prevented to his determination to fight fronts challenges including cedes-Benz maker cited strong sales in all major program that started slowly but has begun to accel- progress. While short on after it pressure from the government regions, not just China and the US. The STOXX erate. Even as many areas slowly return to normal, specifics, Orcel also said he rescinded an offer to make him to take over troubled lender Europe 600 Automobiles & Parts Index climbed carmakers are benefiting from health concerns wants to reduce complexity and CEO. Banca Monte dei Paschi di Siena 1.5 percent in early trading, led by gains in over using public transport or ride hailing services streamline the business for “It is not without risk,” Orcel and doubts over the lender’s Volkswagen, Continental and Daimler. during a pandemic. quicker decision-making. said of his plans. “It does not route to growth. Consumers returning to dealerships are a Among Europe’s five largest markets, sales rose The 57-year-old Italian promise an easy life.” Once seen The bank will focus on areas welcome development for the industry after 29 percent and 21 percent in Italy and France in native, who has a degree in eco- as a potential successor to Sergio that can generate a profitable months of Europe’s car market lagging behind the first quarter. Registrations fell 15 percent in nomics and commerce from the Ermotti to take over at UBS, growth and will seek paths “that rising sales seen in China and the US. Carmakers’ Spain, 12 percent in the UK and 6.4 percent in University of and a mas- Orcel took over at the helm of are value accretive, aiming to concerns have shifted dramatically from demand Germany. About 47 percent of vehicles registered ter’s in business administration Italy’s No. 2 bank after spending deliver total risk-adjusted to supply issues, with the global chip shortage ham- in the first three months of the year were VW or from Insead at Fontainebleau, two years out of a job over the returns in excess of the bank’s pering production for the likes of Volkswagen, Stellantis models. near , is known as a botched move Santander. For cost of equity,” the CEO said.