World Markets REPOR T& ●GEOPOLITICS ●FINANCE ●TRADING ● BUSINESS ●INVESTING ● DATA May 18-24, 2020 Issue 03

MAJOR 1.73 % 3.29 % 3.20 % 3.44 % 1.71 % 1.91 % 1.75 % 1.10 % 5.82 % 3.34 % INDICES FTSE/JSE DJIA S&P500 NASDAQ ASX200 SSECOMP NIKKEI225 NIFTY50 DAX FTSE100

MARKETS REVIEW Week May 18-24 KEY POINTS X I P N

Equities climbing in A

TRADE C S / P cautious environment F A

: o isk appetite returned to world markets. Equity in - t WTO sees global trade o dices were mostly up driven by the optimism from the h dropping between 13% P economic re-openings and the large fiscal and mon - and 32% in 2020, de - etary stimulus packages. Headlines regarding poten - pending on the en - ● US-CHINA: China-U.S.tensions flared up tial answers to the pandemic out of the healthcare sector durance of the pandemic Kyriaki again. The White House stepped up pressure on also offered support. But stocks gave up a portion of their and post-pandemic re - China, while Beijing announced plans to impose I.Balkoudi gains as caution returned with US-China friction coming covery period. national security legislation on Hong Kong. to the fore again. US: It was a strong week of gains for US stocks as some encouraging economic STOCKS reports supported sentiment. Comments from US Federal Reserve Chair Jerome Powell who said that the central bank had not exhausted its options to counteract the slowdown also reinforced the brighter mood. IHS Markit’s gauge of May services sector activity surprised on the upside, while mortgage World stocks have applications jumped off a five-year low. (see Americas section on p.3) bounced back by 31% in less than two months ASIA/PACIFIC : Asian markets closed higher for the week but took a beating from a March selloff. on Friday after China announced plans to impose a new security legislation ● German Chancellor Angela Merkel and on Hong Kong. In Japan, the central bank bolstered its support for business INTEREST EU: French President Emmanuel Macron proposed financing to about $700 billion, launching its version of Federal Reserve's the creation of a recovery fund worth €500 bil - ‘Main Street’ lending scheme. In Australia, the ASX managed to end on a high lion aimed at rescuing the EU from the toughest for a fourth straight week. (see Asia/Pacific section on p.4) crisis in its history. The South African Re - EUROPE: Equities made gains in every major developed market in the con - serve B ank cut its main tinent as countries began to emerge from lockdowns. France and Germany lending rate by 50 basis proposed a one-off €500 billion rescue fund designed to support economies points to 3.75%. The across the EU to rebound from the coronavirus crisis. move helped send the Bank of England (BoE) Governor Andrew Bailey told lawmakers that BoE rand to a two-mont is neither ruling in nor ruling out negative interest rates as it tries to fight the high. worst downturn in centuries. His comments came shortly after the UK issued its first bond with a negative yield. Adding to the long list of monetary policy INFLATION actions, the European Central Bank signalled that it is ready to do more. (See Europe section p.5) ● WORLD: Kristalina Georgieva, the head Despite positive headlines which are driving the markets, uncertainties are of the International Monetary Fund, warned creating an environment of caution. Investors seem to enjoy the recent rally The Bank of Russia ex - that full global economic recovery is unlikely in but the economy and the stock market are seemingly on different pages at the pects further growth of 2021. The Washington-based institution is due moment. As economic forecasts continue to deteriorate, will they manage to annual inflation that to release new global projections in June. hold their nerve amid the chaos? amounted to 3.1% in April. SWF

Sovereign wealth funds (SWF) invested $5.36bn in U.S. equities and bonds in Q1, at the ex - ● UK: The Bank of England is now open to pense of riskier invest - the idea of negative interest rates, Governor ments, eVestment data Andrew Bailey said, just days after it had showed. ruled them out.

WORLD MARKETS W.REVIEW MAY 18-24-2020 P.1 AFRICA P. 2 TOPICS IN BRIEF MARKETS REVIEW NEWS TO WATCH Politics, Law, Disasters Wealthy countries have & Elections NSE records loss, Egypt failed Africa The United Nations Office for the issues eurobonds The presidents of Kenya, Ivory Coast, Coordination of Humanitarian Af - Sierra Leone, Senegal and Niger say NIGERIA: Equities listed on the Nigerian Stock Exchange shed a whoop - fairs on Monday announced that wealthy industrial countries are failing ing N1.95 trillion in the first quarter of the year. The Nigerian All-Share nearly 1 million people are affected Africa, with pledges of financial sup - and at least 24 people have died in Index (ASI) also dropped by 20.73% during the period under review. The fall has been attributed to the coronavirus pandemic, as well as the plunge port and debt relief falling well short the flash floods that hit Beledweyne of the continent's needs amid the and Jowhar, Somalia. in global oil prices. The best performing indices in the market were: In - dustrial Index (-3.28%), NSE Insurance (-5.10%), NSE Premium Index( worsening COVID-19 outbreak. The On the same day, Ugandan police ar - leaders took part in a virtual round - rested Stella Nyanzi, a prominent ac - -16.77%) NSE Lotus Islamic (-17.56%) NSE Oil and Gas (-18.01%) and NSE AFR Div Yield Index (-18.86%) .The NSE Consumer Goods was table on Tuesday organized by the ademic and vocal critic of President New York Forum Institute. as she protested the worst performing index during the quarter, (-45.10%) Nigeria’s most against lockdown measures. The important commodity ( crude oil), also registered its worst quarterly per - Investors grab SA coins Parliament of on Tuesday formance in the first quarter of the year. Nigeria is just one of the many emerging and frontier markets which have accepted the resignation of Tom Foreign investors are snapping up experienced capital outflows due to the imminent global recession. A rise Thabane and Finance minister platinum coins engraved with African in the fortune of crude oil will bolster investor’s confidence in the nation’s Moeketsi Majoro replaced him as in - wildlife. Richard Collocott, managing capital market. terim Prime Minister. director of the Johannesburg-based Citizens of Burundi headed to the EGYPT: Egypt issued eurobonds worth $5 bln, the finance ministry an - Prestige Bullion told Bloomberg that polls on Wednesday to elect their nounced on Friday, describing it as the biggest international bond issuance over 2,000 coins featuring an elephant president and the members of the in its history. sold out to US and Asian investors National Assembly. Regional and The ministry said the issuance was in three tranches with maturities of after being minted in March. international election observers were four, 12 and 30 years, and was mainly aimed at providing the necessary blocked from monitoring the elec - liquidity to cover the needs of the upcoming 2020/2021 fiscal year, which Rwanda's tea sector tion. Full results are expected within begins on 1 July. growing The issuance attracted bids by over 400 investors, including 60 new in - a week. In Rwanda, the tea sector spared by The World Bank approved a $1 bil - vestors who were subscribing to Egypt’s international bonds for the first time. The bids came from investors in the US, the EU, Asia, the Middle the coronavirus pandemic saw a lion budget support operation for marked increase during the first quar - Kenya, which has recorded strong East, and Africa. The issuance was the second during the current 2019/2020 fiscal year, ter of this year. It totals over 9,000 economic growth in recent years that tonnes revenue of more than US$27.6 has led to a reduction in poverty. after a $2 billion triple-tranche eurobond issuance in November. It comes nearly a week after Egypt secured $2.772 billion from the International million, which is up by 15% from the In , Basic Education same period in 2019. Minister Angie Motshekga said Monetary Fund (IMF). schools will reopen for Grades 7 and MAJOR INDICES WEEKLY PERFORMANCE ( % change) Sudan inflation hits 99% 12 on June 1. The closure of schools Sudan’s inflation rate has risen further halted a national feeding programme COTE D'IVOIRE BRVM COMP -3.30% , EGYPT EGX30 -2.39% to 99% in April due to rising food providing meals to 9 million ex - KENYA NSE ASI 2.00%, MOROCCO MASI 2.96 %, NAMIBIA prices, the Sudanese Central Bureau tremely poor children. FTSE/NSX OI 4.3%, NIGERIA ASI 5.59%, SOUTH AFRICA of Statistics announced. This rate had FTSE/JSE 1.73%, TANZANIA DSE ASI -1.12%, TUNISIA TUNIN - already risen to 82% the previous CHART of the WEEK DEX -0.15%, UGANDA ASI 1.94%, ZAMBIA LSE ASI -0.11% , month, over one year. But rising ZIMBABWE ZSE IND 32.21%. prices for grains, meat, milk and bread Nigerian GDP grows have further increased inflation. in Q12020 HIGHLIGHTS in AFRICAN BUSINESS Namibia suspends ce - •Banking group Investec CEO Fani Titi told Fin24 that South real imports Africa should accelerate the easing of the lockdown. He also Namibia will suspend all cereal im - said government nd industries need to to work towards a com - ports from next month. The Namibian mon objective of saving both the economy and lives. Agronomic Board, NAB announced National Bureau of Statistics that maize and pearl millet imports • African e-commerce giant Jumia reported an almost 7% will not be allowed entry into the ● Nigerian GDP grows fall in Q1 revenue due to supply chain disruptions. Still, dur - country until millers have taken up in Q1 2020 ing an earnings call on Wednesday, founders Sacha Poignon - the local harvest, later in the year, in nec and Jeremy Hodara (pictured) said they saw November. In the first quarter of 2020, Nigeria’s opportunities amid the pandemic Gross Domestic Product (GDP) grew by 1.87%(year-on-year) in real ● Nigeria-based Dangote Cement reported a combined terms. This performance was profit after tax (PAT) of N60.6 bn (0.6% YoY) in its Q1'20 MSCI recorded against the backdrop of unaudited results. The company revealed that it has obtained SEC approval for the planned share buyback programme significant global disruptions result - ▶ South Africa ing from the COVID-19 public (Picture: Michel Puchercos CEO) 1.30% health crisis, a sharp fall in oil prices ● Ethiopian Airlines CEO is 'optimistic' on post-pandemic ▶ EFM Africa EX SA 2.06% and restricted international trade. recovery. Tewolde Gebremariam, chief executive of Africa's The performance recorded in Q1 biggest carrier, told Reuters he is confident that the passenger 2020 represents a drop of –0.23% industry will recover because "people were not meant to be (Note: Weekly Change %) points compared to Q1 2019. locked down".

P.2 MAY 18-24-2020 WORLD MARKETS WEEKLY P. 2 AMERICAS P. 3 TOPICS IN BRIEF MARKETS REVIEW NEWS TO WATCH Politics-Law-Crime Uncertainty prevails Canada's inflation rate Health-Int.Relations goes negative The week kicked off with protests despite optimism Annual inflation rate turned nega - against the government in Chile's US: It was a strong week of gains for US stocks as enthusiasm over the tive in April, Statistics Canada data Santiago due to food shortages in the economy reopening and some encouraging economic reports supported showed. The consumer price index poorest neighborhoods of the city sentiment. Comments from US Federal Reserve Chair Jerome Powell who for April dropped to –0.2% com - created by the lockdown. told an interviewer that the central bank had not exhausted its options to pared with a year ago, the first year- On Tuesday (May 19) Canadian counteract the slowdown reinforced the brighter mood. IHS Markit's man - over-year decline since September Prime Minister an - ufacturing and services output in May showed improvement while existing 2009, when prices fell -0.9%. nounced the border between the home sales in April were surprising handily on the upside. Among the major categories seeing United States and Canada will re - Mortgage applications jumped in May off a five-year low but weekly initial huge price declines were: Gasoline, traveler accommodation, electricity main shut until June 21 as a result of jobless claims for last week remained painfully elevated at roughly 2.4 mil - prices, clothing and footwear. the coronavirus pandemic. lion. News of progress on coronavirus vaccine development also lifted op - In Brazil, the Ministry of Health re - timism for the economic recovery. However, a vaccine and a new round of US money market as - ported 17,408 new confirmed cases massive monetary and fiscal policy responses cannot fix the and 1,179 more deaths from world economy. The world economy will rebound when peo - sets increased COVID-19, their highest daily death ple produce and consume again. Tensions between the US US money market fund assets in - toll to date, bringing Brazil's death and China continued to rise, dampening gains slightly. creased by $5.81 billion to $4.722 toll to 17,971 and 271,628 total cases. trillion in the week ended May 19, On Wednesday (May 20) Colombia LATIN AMERICA: In Latin America, the coronavirus pan - the Money Fund Report said. Tax - followed in Argentina's footsteps and Samuel demic, the recession, oil prices and tensions between Wash - able money market fund assets in - imposed one of the toughest travel Torres ington and Beijing were the catalysts for the week, leading to creased by $6.35 billion to $4.587 bans in the world saying no interna - Prof. a negative momentum and a fall in the main currencies of the MBA & trillion, while tax-free assets de - tional passenger flights will be al - region, which faces the largest contraction of GDP since 1930, Markets creased by $531.10 million to lowed until August 31. Argentina is on course for a technical default and extends ne - $134.77 billion, according to the re - In Mexico, official data showed that gotiations with creditors until June 2. In Mexico, telecommunications, port, published by iMoneyNet. homicides in the country hit record health and industrial services stocks showed a significant move to the down - levels in the first four months of side on Thursday. In Colombia,considerable weakness was visible among 2020, climbing by 2.4% from the public services and agriculture sectors. In Brazil, which is becoming the Ecuador cuts public same period last year. In Bolivia, new epicenter of the pandemic in the region, the stimulus package by Pres - spending by $4 bn Bolivian Minister of Health Marcelo ident Bolsonaro improved sentiment on the business sector on the Sao Paulo stock exchange. In Venezuala, Caracas' IBC Index closed up 2.94%. The Andean country's government Navajas was dismissed and arrested on Tuesday announced new public in graft probe over ventilators bought Finally, the number of unemployed in region will reach 37.7 million this year (up 11.5%) while Extreme poverty is expected to surge to 214 million people. spending cuts aimed at saving $4 in a Spanish company. billion. The South American nation On Thursday (May 21) US President MAJOR INDICES WEEKLY PERFORMANCE (%change) has been hit hard by the global fall Donald Trump announced Washing - of oil prices, one of its main exports. ton will withdraw from the Open ARGENTINA: MERVAL 4.00%, BRAZIL: BOVESPA 5.95% The country uses the U.S. dollar as Skies Treaty within six months, alleg - CANADA:TSX COMPOSITE 1.88%, CHILE: IPSA 2.80% ,COLOM - its currency, which stops it from ing Russian actions had prompted BIA: COLCAP 0.37%, JAMAICA: JSE -2.31%, MEXICO: IPC 0.26%, printing money to finance spending. him to take the decision. The Open PERU: S&P LIMA GENERAL 1.05%, VENEZUELA: BVCC 1.40%, Skies Treaty came into force in 2002 USA: S&P 500 3.20%, USA: DJIA 3.29%, USA: NASDAQ COMPOS - Venezuela sues BoE and is designed to boost confidence ITE 3.44%. and assure against attacks. Some 35 over $1bn gold nations are party to the treaty .Russ - Venezuela has launched legal pro - ian's Ministry of Foreign Affairs AMERICAN BUSINESS HIGHLIGHTS ceedings against the Bank of Eng - called the move “very regrettable." ● Santander Consumer USA Inc. the nation's largest sub - land (BoE) over its refusal to release prime auto financing company, settled claims of loan impro - €930m ($1bn; £820m) worth of CHART of the WEEK prieties with 34 states to the tune of $550 million. The Venezuelan gold stashed in its company said it had been expecting the settlement. (Picture: vaults. BoE has delayed the transfer CEO Timothy Wennes) of 31 tonnes of Venezuelan gold since 2018. According to the claim ●Apollo Global has invested $1.75 billion in US supermar - form filed to London’s High Court, May 17 ket operator Albertsons. “We believe the investment led by the UK central bank’s actions are 2020 the Apollo funds represents a vote of confidence in both our “depriving Venezuela’s central bank business and our long-term strategy,” Albertsons CEO Vivek (BCV) of access to its gold reserves 2.4 Sankaran said. US Dep.of Labor at a time of national and global ●E-commerce company Shopify will have staff work from emergency.” ● US Initial Jobless Claims home as much as possible, even after the pandemic ends. The number of Americans filling for Tobi Lutke, CEO Shopify, which became Canada's most unemployment benefits hit 2.4 mil - valuable company earlier this month, said in a tweet it's now MSCI lion, bringing the 9-week total to "digital by default." ▶ North America 3.26% nearly 39 million. It was the seventh ●AT&T Inc said on Tuesday it was shutting its Venezuela week in a row that claims declined subscription TV unit, DirecTV, citing US sanctions, cutting ▶ EM Latin America 8.38% but remained historically elevated. off a key source of entertainment for millions of people. Di - The weekly report is a crucial indi - recTV was Venezuela's most popular television service. (Pic - (Note: Weekly Change %) cator of the US labour market. ture: AT&T CEO: Randall L. Stephenson)

WORLD MARKETS WEEKLY MAY 18-24-2020 P.3 .

ASIA & PACIFIC P. 4 TOPICS IN BRIEF MARKETS REVIEW NEWS TO WATCH Politics, Accidents, Big slump in South Disasters, Law ,Health Monetary policy moves Korea’s exports Six Pakistani soldiers were killed on and politics in focus South Korea's exports dropped 20.3 Tuesday when their vehicle was tar - percent in the first 20 days of May, geted by a roadside bomb in Asian markets closed higher for the week but took a beating on Friday. from the same period a year earlier, Balochistan. A military court in Viet - data from the Korea Customs Service CHINA: The week saw a further deterioration in U.S.-China relations. showed. The value of exports reached nam on Thursday sentenced former The US Senate overwhelmingly passed a bill that could block some Chi - deputy defense minister Nguyễn Văn $20.3 billion, compared to $25.5 bil - nese companies from listing on US stock exchanges. Meanwile, China lion a year ago. Monthly trade data Hiến to four years in prison for al - urged domestic firms to list in London to hedge against Wall St’s growing lowing three plots of land in Ho Chi from Asia’s fourth-largest economy is hostility, The South China Morning Post reported citing sources. In - considered a bellwether for world Minh City to be illegally transferred vestors pulled from Hong Kong stocks on Friday as China announced from the Navy to private investors. trade as it is the first to be released plans to impose a new security legislation on the Special Administrative among major exporting nations. An Airbus A320 carrying 99 people Region with the Hang Seng Index sinking 5.6%. crashed on Friday in a residential area Mainland A-shares also dropped on the last trading day of the week. HSBC sees big wealth near Karachi Airport, Pakistan. Critics say the proposed legislation would effectively end one country, Ninety-seven people onboard were two systems status. asset growth killed; the other two survived injured. HSBC Holdings, Europe's largest In New Zealand, JAPAN: Japanese stocks posted gains for the week as the Bank of Japan left its monetary policy stance unchanged and pledged further support. lender by assets, expects to achieve Todd Muller defeated Simon Bridges double-digit asset growth in its to become the new leader of the Na - The central bank bolstered its support for business financing to about $700 billion, launching its version of Federal Reserve's ‘Main Street’ newly combined wealth business in tional Party, and the Leader of the Asia Pacific by 2023, Greg Opposition. lending scheme. The country's economic conditions will likely stay tough in the current Hingston, the unit's regional head In China, the government scrapped told Reuters. The combined wealth its longstanding tradition of offering quarter, Finance Minister Taro Aso said on Tuesday. Ministry of Finance (MOF) data on Thursday showed Japan's exports fell 21.9 percent in business, which came into effect on an annual growth target in its yearly May 1, manages assets worth about work report unveiled at the start of April year-on-year, the fastest decline since the 2009 global financial crisis, as pandemic wipes out global demand car exports there plunging US$1.3 trillion globally, with nearly the annual meeting of parliament, cit - half of that in Asia. ing uncertainties brought on by the 65.8%. pandemic. AUSTRALIA/NZ: In Australia, the ASX managed to bank a fourth Singapore to restart “If the epidemic hadn’t happened, straight week of gains but closed lower on Friday Earlier in the week, under general circumstances, the minutes from the country’s central bank’s last meeting revealed that economy GDP growth target would be set Australia is facing an “unprecedented” economic contraction due to the The city state will see three-quarters around 6%,” Chinese President Xi coronavirus pandemic. of its economy resume normal oper - Jinping told a parliamentary group In New Zealand, RBNZ Deputy Governor Geoff Bascand told Reuters ations when curbs to fight the coro - discussion on Friday, according to in an interview that the central bank “will evaluate negative rates along - navirus are eased from June 2, its state media. side other options." government said on Tuesday, after The next day, the country reportred two months of workplace closures. no cases for the first time since the MAJOR INDICES WEEKLY PERFORMANCE (%change) Retail stores and restaurant dining pandemic began. likely to resume in July, Nikkei AUSTRALIA ASX200 1.71%, CHINA SSE COMP -1.91%, CHINA Asian Review reported. SZSE COMP -3.10% , INDIA NIFTY50 -1.10% , INDIA SENSEX30 CHART of the WEEK -1.37 , JAPAN NIKKEI225 1.75%, MALAYSIA KLCI 2.37%, NEW Good news for Aus - ZEALAND NZX50 -0.63%, SINGAPORE STI 2.62%, PHILIPPINES tralia's jobs market PSEi -0.05% , TAIWAN TWI -0.03%, THAILAND SET 1.81% Payroll data from the Australian Taxation Office, analysed by the April HIGHLIGHTS in ASIA&PACIFIC BUSINESS Bureau of Statistics (ABS), shows 2020 the number of employees on payroll ●Australian consumer lending company Afterpay said it has fell 7.3 per cent nationally from Japan Ministry of Trade & Economy signed up 1 million active customers in the U.S. over the mid-March to early May. "The latest past 10 weeks. Afterpay plans to launch in stores in the US data shows a further slowing in the in its fiscal H2 2020. (picture: Anthony Eisen CEO) ● Japan industrial produc - fall in COVID-19 job losses be - tion down 3.7% ● Chinese online search giant reported a 7% year-on-year tween mid-April and early May," Industrial production in Japan de - revenue decline in Q1 to 22.5 bn yuan ($3.18 bn). Diversi - said Bjorn Jarvis, head of labour clined by 3.7% month-on-month in fied revenue streams helped Baidu to stay resilient amid the statistics at the ABS. March 2020, the steepest drop in in - fallout of the pandemic, said Robin Li, co-founder and CEO. dustrial output since October last year, due to the COVID-19 outbreak. ● Japan's Nomura said it planned to beef up business with un - MSCI The largest contributors to the de - listed companies, including offering advice to startups “To crease were motor vehicles, produc - achieve sustainable growth, I have to take Nomura to a different ▶AC Asia Pacific -0.07% tion machinery, and inorganic & dimension” CEO Kentaro Okuda told an investor briefing. organic chemicals. On an annual ▶Asia ex Japan -1.46% basis, industrial output fell 5.2% in ● Co-working major WeWork India has decided to lay March, the sixth straight month of off around 20 per cent of its staff In a statement, Karan decline, after a 5.7% decline in Feb - Virwani, CEO noted that the decisions impacting (Note: Weekly Change %) ruary people are "some of the hardest" to make.

P.4 MAY 18-24-2020 WORLD MARKETS WEEKLY .

P. 4 EUROPE & EURASIA P. 5 TOPICS IN BRIEF MARKETS REVIEW NEWS TO WATCH Politics, Business, ECB Meeting Accounts Law, Social A solid advance amid The European Central Bank (ECB) released on Friday (May 22) the In Sweden, an earthquake with a encouraging signs accounts of its April monetary pol - magnitude of 4.1 stroke near icy meeting saying that despite Kiruna on Monday. No injuries European equities made gains in every major developed market in the market liquidity "progressively im - were reported. The European continent as countries began to emerge from lockdowns. proving," financial markets continue Court of Justice on Tuesday ruled UK : After growing speculations,Bank of England (BoE) Governor to show "signs of fragility." Mem - that Hungarian authorities circum - Andrew Bailey told lawmakets on Wednesday that BoE is neither bers of the ECB board concluded vented EU law by holding Afghan ruling in nor ruling out negative interest rates, as it tries to fight the the "mild" scenario for the coron - and Iranian asylum seekers in un - worst dowturn in centuries. It's worth remembering that only a couple avirus pandemic has been too opti - lawful detention at a camp near the of weeks ago, Bailey said, in effect, that the BoE had never lowered mistic, adding a V-shaped economic Serbian border. interest rates to below zero and wasn’t going to start now. recovery can "probably be ruled Kyrgyzstan will reopen the retail His Wednesday comments came shortly after the UK issued its first out." and services sectors from May 21, bond with a negative yield. The auction means Britain joined the club and public transportation from of negative-yielding debt issuers. Meanwhile, April jobless claims Russia's gold May 25, the government said on jumped to highest since 1996, data showed. Tuesday. The European Union’s reserves top-up Brexit negotiator, Michel Barnier, EUROZONE: Equities ended the week higher. France and Germany In April, the value of the Russian said on Wednesday that Britain proposed Monday a one-off €500 billion rescue fund designed to central bank’s gold reserves grew was not automatically entitled to support economies across the EU to rebound from the coronavirus by $6.244 billion, or 5.2 percent, any benefits that the bloc had pre - crisis. The announcement followed weeks of debate between EU reaching a value equivalent of over viously granted to other partners leaders over which financial mechanisms should be used. $126 billion, or 21.3 percent of the on trade. France, Italy and Spain had favored grants but Austria, the Nether - bank’s total reserves, according to Europe's largest coach operator lands, Denmark, and Sweden said they would only accept a rescue figures released by the regulator. Shearings collapsed into adminis - fund that gave out loans. French Economy and Finance Minister The central bank’s international re - tration on Friday with 2,460 imme - Bruno Le Maire stressed on Tuesday that the fund is not expected to serves, consisting of gold, foreign diate job losses and thousands of become available before 2021. currency reserves and special draw - holidays cancelled. Germany’s DAX index was especially strong after the monthly sur - ing rights assets, are a type of rainy The Ukrainian Ministry of Internal vey published by ZEW showed that economic sentiment in Europe's day investment fund enabling the Affairs confirmed on Saturday that largest economy surged to 51 points in May significantly surpassing Russian government to pay off for - Valeriy Davydenko, an independ - the expectations. eign lenders, or make up for gaps in ent member of the Verkhovna Adding to optimism, purchasing managers’ indices for the region en - the budget during a crisis period. Rada, the unicameral parliament of couragingly showed improved activity in most countries in May and According to the World Gold Coun - Ukraine, had been found dead in Eurozone consumer confidence was also up slightly this month. cil (WGC), in 2018 Russia bought his office in Kiev with a gunshot 274.3 tons of gold, in 2019- 158.1, wound to the head. MAJOR INDICES WEEKLY PERFORMANCE (%change) and so far in 2020 - 28 tons. In Spain, thousands of protesters BELGIUM BEL20 1.04%, DENMARK OMXC25 4.75%, FRANCE participated in car protests in Outlook for European CAC40 3.90%, GERMANY DAX 5.82% , ITALY FTSE MIB 2.75% Madrid, Seville, Barcelona and NETHERLANDS AEX 4.81%, NORWAY HEX 2.74%, PORTUGAL corporate profits other cities against the lockdown PSI20 6.14%, RUSSIA MOEX 4.45 %, SPAIN IBEX35 3.44%, SWE - and the national government. worsens DEN OMXS30 4.14%, SWITZERLAND SMI 2.17%, UK FTSE100 Expectations for second- and third- -3.34%. quarter corporate profits are deteri - CHART of the WEEK orating further in Europe. HIGHLIGHTS in EUROPEAN BUSINESS Companies listed on the pan-Euro - pean STOXX 600 are now expected ● Austria-based group Borealis has announced that it pulls to report a decline of 48.4% in sec - out of $6.8bnplan to build petrochemical plant in Kaza - ond-quarter earnings, down from a April khstan, citing economic uncertainties sparked by the pan - drop of 46.7% forecast the week 2020 demic. The company also reported a net profit of €151m before. Before the pandemic, ana - UK National Statistics Bu. in Q1. (Picture: Borealis CEO Alfred Stern) lysts had expected the first quarter of 2020 to bring an end to Europe’s ●UK retail sales fall by ● Russian gas giant Gazprom is moving ahead with plans to corporate recession that had lasted build a $20bn gas pipeline to China. Gazprom CEO Alexei through 2019. a record 18% Miller (pictured) announced to Russian media that the com - Retail sales in the UK plunged pany had begun design and surveying work for the pipeline. 18.1% month-over-month in April of 2020, worse than market expec - ●Zalando, Europe’s biggest online only fashion retailer, pro - MSCI tations of a 16% fall. It is the biggest posed that Jennifer Hyman (pictured) joins its supervisory slump in retail sales on record, due board, replacing Alexander Samwer. Hyman is CEO and ▶Europe 4.18% to the coronavirus pandemic and re - Co-Founder of clothing rental firm Rent the Runway. strictive measures imposed such as stores and business closures. Biggest ●Terms of a planned merger between Fiat Chrysler and ▶Large Cap 3.37% declines were seen for sales of fuel Peugeot-owner PSA are set in stone, FCA’s chairman John Elkann (pictured) said in conference call after the annual (-52%), clothing and footwear shareholder meeting of Exor, the Agnelli family holding (Note: Weekly Change %) (-50.2%) and household goods company which controls FCA.

P.4 MAY 18-24-2020 WORLD MARKETS WEEKLY W O R L D M A R K E T S W E E K L Y M A Y 1 8 - 2 4 - 2 0 2 0 P.5 MIDDLE EAST P. 6 TOPICS IN BRIEF MARKETS REVIEW NEWS TO WACTH Politics,Conflicts, Arab Markets experi - Turkey, Qatar triple FX Law, Health, swap line Int.Relations ence losses Turkey secured a tripling of its cur - rency-swap agreement with Qatar, Qatar tightened restrictions on com - ARAB COUNTRIES: Major Arab stock markets registered value losses Turkey's central bank said on Wednes - mercial activities on Monday, as part of about 25% in the first quarter of 2020, due to heightened volatility in day. The deal is valued at $15bn. of measures to stem the spread of the oil markets and the pandemic, a UN agency said. Turkey obtained $3 billion of the novel coronavirus. The United Arab The new policy brief by the United Nations Economic and Social Com - swaps from Qatar at the height of a Emirates said it will extend a nightly mission for Western Asia (ESCWA) and the Union of Arab Banks on the currency crisis in August 2018. curfew by two hours from this week current situation of Arab financial markets and the banking sector in the and it would next month start receiv - Arab region, found that the coronavirus pandemic and the collapse in oil Kuwait, S.Arabia ing those with valid residencies prices, have lowered investors’ appetite for risk and decreased trading in stranded abroad whose families are in stock markets, investment, tourism and remittances inflows, rendering suspend joint field the UAE, state media reported. future growth prospects beak. production Palestinian President Mahmoud The health and oil crises also decreased the share price values of the Abbas on Tuesday announced the ter - largest Gulf Cooperation Council countries' banks by 25 per cent in the Kuwait and Saudi Arabia will halt oil mination of all agreements, including first quarter of 2020. Default rates may reach 10%, up from 5% in 2019. production from the joint Al-Khafji security ones, with Israel and the field for one month starting June 1 fol - United States in response to Israel's TURKEY: Turkey's benchmark stock index BIST100 closed up 3.3% lowing an output cut deal between plans to annex the Jordan Valley, ac - for the week. The market was closed on Tuesday for a holiday. Turkey's OPEC and non-OPEC countries, state cording to WAFA. Central Bank on Thursday lowered its key interest rate, also known as news agency KUNA reported. The United Nations expressed alarm the one-week repo rate, to 8.25% from 8.75%, in line with market ex - at violence in Afghanistan as Afghan pectation. Since the beginning of this year, the bank has cut the rate by Oman cuts salaries for civilian casualties jumped to 380 in a total of 375 basis points. new civil servants April. The International Monetary Meanwhile, the government has been strongly Fund on Wednesday approved a $396 encouraging domestic banks and corporations to buy Turkish govern - Oman has reduced the salaries of new million loan to Jordan to address ment bonds and to minimize exchanges of lira for other currencies. civil service employees by up to 20 pressing financing needs after the per cent with immediate effect. The country’s economy was hit hard by MAJOR INDICES WEEKLY PERFORMANC (% change) salaries cuts range from 20 per cent the coronavirus. for doctorate holders to 5 per cent for Lebanon's PM Hassan Diab wrote in 17-21/05/2020 (unless otherwise stated) secondary school graduates. The sul - The Washington Post on Thursday: ABU DHABI ADX GENERAL 1.13% , BAHRAIN ASI 2.40% tanate last raised civil servants' “Once the breadbasket of the Eastern salaries in 2013. IRAQ ISX60 -0.91%, IRAN TEDPIX Mediterranean, Lebanon is facing a 4.1% - (09-13/05/2020) dramatic challenge that seemed ISRAELTA35 5.23%, LEBANON BLOM -7.87% (18-22/05/2020) BoI head supports ex - unimaginable a decade ago: the risk PALESTINE AL-QUDS 0.14% , OMAN MSM30 -0.40%, QATAR pansionary budget of a major food crisis.” QE GENERAL 1.58%, SAUDI ARABIA TADAWUL 4.97% Bank of Israel Governor Amir Yaron TURKEY BIST100 3.26% (18-26/05/2020) said he supports an expansionary CHART of the WEEK 2020-21 budget. “As long as the econ - HIGHLIGHTS in MIDDLE EAST BUSINESS omy is in a phase of contraction or even a phase of recovery, we don’t ● UAE telecoms operator Etisalat announced on Wednes - want to tighten belts in a way that pre - day that its CEO Saleh Al Abdooli has resigned for per - vents it from growing as fast as possi - April 2020 sonal reasons. The board of directors has accepted his ble and exiting the crisis,” Yaron told resignation and appointed Hatem Dowidar (pictured) as an online economic conference. Turkish Statistical Ins. acting CEO for the group. Bad news for Dubai ● Turkey's economic con - ● Dubai Airports CEO Paul Griffiths expects 18-24 fidence index falls months recovery timeframe. Dubai International Airport companies Turkey’s economic confidence index recorded 17.8 million customers in Q1 2020, down 19.8 A new survey by the Dubai Chamber had a drop in April of 5.8 percent to per cent y-o-y due to dampened demand and reduced of Commerce revealed that 70% of 51.3 in April 2020 from 91.8 in the flights. Dubai companies expect to go out of previous month. It was the lowest ● Royal Dutch Shell evacuated some 60 foreign staff from business within six months. The reading on record, as sentiment dete - Iraq’s Basra Gas Company -a venture between South Gas Chamber surveyed 1,228 CEOs riorated among service providers Company, Shell and Mitsubishi- as a security measure fol - across a range of sectors between manufacturers, retailers; constructors lowing a protest over delayed pay. (Picture: Shell CEO Ben April 16-22, during the emirate’s and consumers. van Beurden) strictest lockdown period.

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P.6 MAY 18-24-2020 WORLD MARKETS WEEKLY