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● How major equities indices performed during the fifth month of the year p.3 ● Stock Exchanges World Map p.5

ifo Institute Dorine WORLD Boumans Survey Specialist "The global economy is said to gradually MarkeFinancial Markets Insights ts strengthen again" p. 07

Freely Distributed ⎥ Monthly Edition ⎥ Volume II ⎥ Issue 10 ⎥ June 2019

Geraldine Weiss East & SE Europe London-Shanghai The female guru of blue chip stocks Monthly performance reports and The long-awaited stock LISTING STOCK EXCHANGES p.03 INVESTORS and publisher of IQT p.06 statistics from the region p.02 connect finally goes live

TRADING IN THE SPOTLIGHT Swiss-EU stock market battle kicks off

Kyriaki I. Balkoudi Investors in the EU and Switzerland find it harder to access each others's bourses U stock exchanges will no civil aviation, industrial standards along ordinance is going to be activated with ef- longer be able to trade in Swiss with equivalence for Switzerland’s finan- Switzerland’s Stock fect from 1 July 2019, as the European companies from Monday (July cial services sector. The proposed accord, Commission will most probably no longer David Marsh Chairman and 1) as talks on a political agree- which would require the country to adopt Market is Europe’s recognise the Swiss legal framework as Co-Founder of OMFIF ment between Brussels and EU single market rules, has been opposed Fourth Largest equivalent. “Activating the protective Bern seem to have failed. both by the political right and labour measure with regard to trading venues in unions on the left in Switzerland for in- the EU serves solely to protect the func- Public The government of non-EU member fringing national sovereignty. The rich U.K $3.3tn tioning of the Swiss stock exchange infra- investors play Switzerland said Thursday (June 27) it Alpine nation received a one-year exten- structure” the Swiss government stated. will block trading of Swiss shares in sion to agree to Brussels’ demands in late FR $2.6tn SIX, the operator of Switzerland's main it safe in the 28-country EU after the European 2017, and a further six-month extension exchange, welcomed the Swiss decision to Commission announced that it saw no at the end of 2018, which expires on Sun- DE $2.1tn activate the protective measures. Switzer- blustery times reason to extend the “equivalence sta- day, June 30. land's stock market is Europe’s fourth tus” it has granted Swiss stock exchanges CH $1.7tn largest. About one-third of trading in External fund managers barely beyond June 30. “Equivalence” makes a Contingency measure Swiss shares currently takes place within get a look in on the $37.8 trillion trade on the Swiss stock market equiva- ES $710bn the EU. The EU is Switzerland's largest held under the auspices of large lent to a trade on an exchange in an EU In November 2018, the Swiss Federal trading partner and Switzerland is the EU's government-owned investors country, allowing trades to be pooled Council adopted an ordinance to safeguard IT $610bl third-largest trading partner, after the US globally, according to OMFIF’s across countries, something that supports and strengthen the functioning of the and China. Swiss elections are approach- latest annual report. Almost 70 per world trade and improves international Swiss capital market. If the recognition of ing and will take place in October. As cent of the 750 institutions cap- market liquidity. Switzerland and the EU equivalence is not extended, this measure Market capitalisation politicians are entering election mode, tured by the Global Public In- of listed companies are embroiled in an ongoing dispute over shall ensure that EU market participants Swiss officials say there is no point signing vestor 2019 survey – that includes a broader deal that is designed to replace continue to have access to the Swiss do- Source: Bloomberg a deal now that will likely not be passed 86 sovereign wealth funds, 173 a patchwork of treaties governing areas mestic market and continue to be able to Note: Data as of June 26, 2019 by parliament or be voted down under the central banks and 491 public pen- as diverse as immigration, agriculture, trade Swiss shares there. The Swiss system of direct democracy. sion funds – allocate between 0- 10 per cent to external managers. The reluctance to outsource re- flects the “fairly conservative” na- ture of the government institutions that follow mainly risk-averse in- Greg Coffey vestment strategies, the report compiled by the Official Mone- GREAT ▶ A hedge fund maestro's blockbuster return to the industry tary and Financial Institutions TRADERS Forum (OMFIF) says. OMFIF is icknamed "The Wizard of Oz", in aged 41 and to retire after 20 years in an independent forum for central based on his past trading successes, the industry, to spend more time with his banking, economic policy and There’s Greg Coffey is an Australian hedge wife and three children in London, Aus- public investment with offices in life N fund manager. Coffey, who gradu- tralia, and on the remote Scottish island of London and Singapore. outside ated with a Bachelor of Economics Jura (population 196), where he owns a Government in- trading from Macquarie University in 1995, 12,000 acre estate and golf course. In started his career at Macquarie Bank in 2018, Coffey, known for taking multiple vestor AUM on 1993. The next year he traded emerging- trading screens on family holidays, had a the rise market equity derivatives at Bankers change of heart and made a comeback. He Trust and Deutsche Bank AG. He was launched in London Kirkoswald Capital, a Over the 2018 calendar year total hired by Blueborder Partners and was then new fund named after the Australian street public investor assets under man- hired by Bank Austria to oversee global he has a house on. The fund which moved agement (AUM) rose 3.7 per cent. equity proprietary trading. He worked for its trading desk to New York returned Sovereign wealth funds saw the London-based GLG Partners from 2003 to 6.9% year to date through the end of May, highest growth rate of almost 8 2008 managing about $7bn and then for according to a private database viewed by per cent to hit US$8.6 trillion, Louis Bacon's Moore Capital Manage- Business Insider. pension fund assets grew 4.8 per ment from 2008 to 2012 where he ran two Coffey's return to the market comes as de- cent to US$15.7 trillion, while emerging market funds. Bacon described mand for existing macro funds has re- central bank holds edged just 0.1 Coffey as "the most impressive trader I've bounded after a tough period. per cent higher to US$13.5 tril- ever seen". Since 2004, Coffey has deliv- Vicious but short-lived volatility spikes, lion. Global Public Investor 2019 ered annualised returns of 22% a year. spectacularly unsuccessful emerging market is the largest and most compre- bets and a dollar U-turn hit macro hedge hensive worldwide survey of pub- Kirkoswald Capital, funds, which tend to trade currencies and lic sector investment institutions bonds off global macro-economic trends, Created by Ip a new venture owning or managing assets equiv- The Australian decided to throw it all hard in 2018. alent to 43% of global GDP. WM 10final_Layout 1 7/11/19 12:08 PM Page 26

2 INSIDE THE MARKETS Issue 10 ⎥ June 2019

E-commerce giant Alibaba Group Kenya’s third Eurobond valued at The number of publicly listed US Holdings is debating whether to offer Sh210 billion ($2.1 billion) was ad- companies plummeted from about new public shares through a listing in mitted for trading at Euronext Dublin 8,000 in 1996 to about 4,300 in Hong Kong to raise $20 on May 22. The Eurobond was sold 2015 an EY study found, with the 1 billion, Bloomberg reported. Alibaba in 2 average number of IPOs per year in two tranches of seven and 12 3 ASIA 2014 raised $25 billion on NYSE in the decreasing from about 675 to NEWS

AFRICA years. Stabilisation period for the Eu- WORLD world’s largest first-time share sale. about 120, according to research AMERICA MARKETS Graph: Alibaba net revenue 2010-2018 robond III will run until June 15. by the University of Florida.

BALTIC STATES INVESTMENT TRENDS GPW's WIGtech offers exciting U.S. VC firms invest in opportunities to investors L. America A new index from Warsaw Stock Exchage contributing to Investments by U.S. venture capital (VC) firms into Latin America investment options diversification are skyrocketing and one of the firms leading the charge into deals is n June 24th, the Warsaw Stock Ex- nies play an increasing role in the economy and none other than Silicon Valley’s Andreessen Horowitz. It’s the only change (GPW) is launching a new on the exchange. GPW provides funding oppor- geography outside of the U.S. where the now 10-year-old venture index, WIGtech. The index will cover tunities to innovative companies which are instru- firm with $2.7 billion under management, has committed significant O high-tech companies listed on the Main mental to technological progress. As trading capital and the pace of its investments is increasing. Andreessen's first Market active in biotechnology, games, venues, exchanges are also highly specialised investment in Latin America took place in 2016 when the California- IT, telecommunication, and new technologies. The providers of state-of-the-art solutions which im- based VC firm invested an undisclosed amount in Rappi, a Colombian number of WIGtech participants will vary. Similar prove the quality of available services. As a part grocery delivery service. More recently it invested US$12.5m in to other indexes, the share of each participant will of its strategic objectives, GPW develops tech- ADDI, a Colombian point-of-sale lending startup. be calculated depending on its free float. The share nologies in order to strengthen our competitive ad- of the biggest companies will be capped at 10 per vantage” Izabela Olszewska, a member of the cent. “Following the launch of macro-sector in- GPW management board, said in a statement. The dices, we have decided to calculate and publish index portfolio will be subject to change on a British companies to WIGtech covering technology companies. The quarterly basis, coinciding with modifications of new index addresses current trends in the econ- the other indices. omy and on the capital market. High-tech compa- cut investment PHOTO: Izabela Olszewska, GPW Management Board Member UK firms look set to cut their investment by the most in 10 years in 2019 due to continued East & South East Europe Stock Exchanges uncertainty about Brexit which weighs on future economic growth prospects, a Every month you can see at a glance for May. World Markets undertakes survey by the British the trading activity of the main stock all the reasonanble efforts to ensure Chambers of Com- exchanges of East and Southeast Eu- that data included in this column merce (BCC) showed. rope. Unless stated otherwise, all was correct at the time of publica- Business investment was forecast to fall by 1.3% this year before figures below refer to performance tion. growing by only 0.4% in 2020, the BCC said. “Businesses are put- ting resources into contingency plans, such as stockpiling, rather than ‣ ATHEX - ATHENS mln): 1 145 154,32 no of traded issues: 54 Turnover (CZK investing in ventures that would positively contribute to long-term Composite Index: 7.37% Domestic Equities (PLN) 000s):10 478 702.034 economic growth,” BCC Director General Adam Marshall (pic- Main market cap (€ mln.): 55,703.32 mln): 573 825,12 Volume (pieces): 43 439 198 tured) said. Brexit has a deadline of Oct. 31. Stocks total: 55,921.23 Foreign Equities (PLN mln): 571 329,2 No of transactions: 53 067 ‣ BJSE - BANJA-LUKA ‣ LJSE - LJUBJANA ‣ SASE - SARAJEVO BIRS: -7.87% SBI TOP: -1.00% SASX10: -0.28% (Dec. 2018) Total Turnover for Securities: 42,328,670 Turnover (EUR): 30.581.746 Total turnover: 106.302.831,18 KM Lower FDI inflows Total number of trades: 1295 Average daily turnover (EUR): 1.456.274 which constitutes 66,21 % of the Total capitalisation: 3,890,815,654 Capitalisation of shares total turnover achieved on BH to CESEE ‣ BELEX- BELGRADE (in EUR 000): 6.821.225 stock exchanges. BELEX15: -1.44% ‣ MSE - SKOPJE No of transactions: 466 Foreign direct investment (FDI) inflows to Central, East and South- Turnover RSD: 4.709.139.886 MBI10: 2.32% Total no of securities traded: 3.350.474 east Europe (CESEE) declined by 13% in 2018, according to a new Turnover EUR: 39.916.418 Market capitalization(denars): ‣ ZSE - ZAGREB report from the Vienna Institute of International Economic Studies No of transactions: 2.852 169.984.978.572 CROBEX: 0.72% (wiiw). The Austria-based think tank expects lower FDI inflows in ‣ BSE - SOFIA Total Turnover (denars): 1.105.508.170 Turnover: 254,961,389 KN 2019 throughout the region, on account of declining global investment SOFIX: 1.29% Trades: 2.073 Market capitalisation: appetite and weaker business sentiment, which could lead to lower Total Capitalisation of BSE main ‣ MNSE - PODGORICA 246,023,762,938 KN GDP growth. Germany and the US are the most important ultimate market: 8,789,827,274.54 MNSE 10: 0.41% No of trades: 8,064 sources of FDI in CESEE. The wiiw FDI report is based upon the Turnover (BGN): 19,183,607 Market capitalisation wiiw FDI Database covering 23 countries of CESEE. It analyses the No of trades: 2,636 3.175.645.443 € major features of FDI developments in and out of the countries of the ‣ BSSE - BRATISLAVA Turnover: 74.830.610 € region and is published annually. SAX: -4.29% No of transactions: 389 IN FOCUS Total Trading Volume: € 14 352 693 ‣ NASDAQ - RIGA Average Daily Trading OMXR: 2.39% Volume: € 683 462 No. of listed shares: 20 ZSE & LJSE SE Asian investors ‣ BVB - BUCHAREST No. of trades: 1786 BET: 0.61% (RON) Avrg no of trades per day: 89.30 Launch Adria eye Vietnam's startups Total turnover ( RON mil): 1.057,54 Turnover (EUR mln) Month value: 3.47 Market Capitalization ( RON mil): Market value (EUR mln) Month Prime Index VC firms from across 161.020,13 end: 813.92 Southeast Asia have Traded no. of finacial instruments ‣ NASDAQ - TALLINN The Zagreb and Ljubljana Stock Ex- pledged to collectively (shares, bonds, rights and futures): OMXT: -1.44% changes are launching on June 19 a com- invest roughly US$425 819.601.805 No. of trades: 45.809 No. of listed shares: 17 mon index, called Adria Prime. The index million into early-stage ‣ BSE - BUDAPEST No. of trades: 5831 will consist of all 5 companies of the Croa- startups in Vietnam by BUX: -3.80% Avrg no of trades per day: 277.67 tian prime market and 8 companies of the 2020, according to a BUMIX: -3.55% Turnover (EUR mln) Month value: 14 Slovenian prime market. ADRIAprime, statement. The pledge CETOP: -3.31% Market value (EUR mln) Month end: which is the first joint index of ZSE and the was made during Viet- Cash market: Hungarian Equities: 800 2,653.29 LJSE, is a free float market capitalisation nam’s first Vietnam Certificates and Warrants: 25 weighted total return index, which will take Venture Summit, an ‣ NASDAQ - VILNIUS into account dividends. The following event involving all stakeholders in the startup ecosystem: policy-mak- ‣ CSE - NICOSIA OMXV: 4.19% shares will be included in the initial ADRI- ers, top-tier founders, global investors, incubators, corporates and ed- CSE General Index: -0.32% No. of listed shares: 26 No. of trades: Aprime composition: AD Plastic, Arena ucational institutes. The successful first edition of the event hosted Market capitalisation of shares (EUR): 4098 Avrg no of trades per day: 195.14 Hospitality Group, Atlantic Grupa , In- 1,000 delegates from across the country and drew in 150 international 2,12 billion Turnover (EUR mln) Month value: 12.89 tereuropa, Krka, Luka Koper, NLB, Petrol, investors. The summit was co-hosted by the country’s Ministry of Total value of transactions (EUR): Market value (EUR mln) Month end: Podravka, Pozavarovalnica Sava, Valamar Planning and Investment, the Ministry of Science and Technology, 6,31 million 3,435.17 Riviera, Telekom Slovenije, Zavarovalnica and Golden Gate Ventures. PHOTO: Paul Bragier Founding Part- ‣ GPW- WARSAW ‣ PSE - PRAGUE Triglav. The Slovenian capital market is ner at Golden Gate Ventures, an early-stage VC firm in Southeast WIG20: -4.07% (PLN) PX: -2.30% larger than the Croatian, Serbian and Bul- Asia with over 25 investments across 7 countries. Market Capitalisation (PLN Trade turnover-equities: garian markets. WM 10final_Layout 1 7/11/19 12:11 PM Page 29 I

Issue 10 ⎥ June 2019 WORLD STOCK EXCHANGES 3 Markets How 24 major equities indices summary, monthly change performed in May 2019

-7.93% -6.58% -6.69% -5.70% -3.46% -6.78% -5.00% -2.52% -5.84% -7.45% -7.34% -8.31% NASDAQ S&P 500 DJIA STOXX 600 FTSE 100 CAC40 DAX SMI SHANGHAI C. NIKKEI 225 KOSPI STI (USA) (USA) (USA) (EUROPE) (UK) (FRANCE) (GERMANY) (SWITZERLAND) (CHINA) (JAPAN) (S.KOREA) (SINGAPORE)

-3.81% -9.42% -4.28% 1.75% 0.70% -4.14% 14.81% 4.14% -7.70% -3.28% 1.13% -4.92% JSX COMP HANG SENG TWI SENSEX BOVESPA IPC ASI MERVAL MOEX EGX30 TSX COMP ASX 200 FTSE/JSE ASI (INDONESIA)(HONG KONG) (TAIWAN) (INDIA) (BRAZIL) (MEXICO) (ARGENTINA) (RUSSIA) (EGYPT) (CANADA) (AUSTRALIA) (S.AFRICA)

LISTING EXPERTS TALK London-Shanghai Wall Street's Stock Connect fi- view on trade nally goes live tensions ompanies listed in the UK will be able to Stocks and businesses sell shares in China starting on Monday feel the pinch C (June 17) with the launch of London- Shanghai Stock Connect, a project that has nvestor nervousness over the outlook taken four years to develop. This is the first time that for global growth grew as the U.S.- any foreign company would be able to list in main- China trade dispute, which has been land China. The west-bound leg of the scheme lets I simmering for the past year, ratcheted up Shanghai-listed companies list on the London Stock in May. US equities were significantly Exchange via Global Depositary Receipts (GDRs) weaker after the US government increased issuance, while the east-bound leg lets British com- the tariff rate on $200 billion of Chinese panies broaden their investor base by issuing China Traders work before the closing bell on the floor of the New York Stock Exchange (NYSE) goods to 25% from 10% and China re- Depositary Receipts (CDRs) on the Shanghai Stock sponded by hiking the tariffs on $60 billion Exchange. of imports from the US. Also worrisome Depositary Receipts (DRs) are certificates that rep- was the hardening rhetoric used by both resent an ownership of ordinary shares of a com- Politics again take countries. Experts warns that the US-China pany, allowing foreigners to buy a stake in a trade fight could deter investment, damage company of another country without the risks asso- corporate confidence and even send S&P ciated in investing in a foreign stock directly, such tumbling by 16% by summer end. as differences in currency, accounting practices or centre stage language barriers. UK's Financial Conduct Authority ■ Scott Minerd (FCA) and the China Securities Regulatory Com- A resurgence in the trade war between the US and mission (CSRC) said that the initial quota for the CIO at Guggenheim east-bound leg of the scheme was 250 billion yuan China has triggered a bout of risk-off sentiment Partners. ($36.11 billion), while the quota for the west-bound Kyriaki I. Balkoudi Editor-in-chief One of Wall Steet’s pre- leg of the program was 300 billion yuan. mier investors and one of the world’s premier bond- China opens up its orld equity markets performed EPP and S&D remain the largest two parties in fund managers, Minerd, poorly over May as trade negotia- Parliament despite losing their absolute majorities for said that by the end of the capital market tions between the US and China the first time since European parliamentary elections summer U.S. benchmarks could fall to There are almost 1500 companies listed in Shanghai, > soured and tariffs were hiked. The were held (1979). In the UK, prime minister, Theresa lower lows than those produced during a over 260 of which meet the criteria to take part in MSCI All Country World Index May, announced that she is stepping down on 7 withering fourth-quarter selloff that culmi- W June since she was unable to get her Brexit deal ap- London-Shanghai Stock Connect and list in the plunged 5.9%, the MSCI DM nated in the ugliest Christmas Eve trading British capital. Stock Connect will not require any Index finished the month 5.8% in the red and the MSCI proved by the British Parliament. session in history. “The trade tensions are direct trading infrastructure links and is only open to EM Index plummeted 7.3%. From May 10 , the US ASIA/PACIFIC likely to get a lot worse because we have companies with a market cap of Rmb20bn ($2.9bn), increased tariffs on USD 200 billion worth of Chinese Japanese stocks fell amid worries over trade. The yen never in modern times had a trade war like according to the programme’s draft rules. Kicking imports as much as 25% from 10% and announced that strengthened against other major currencies, as in- this,” Minerd told MarketWatch in an inte- off the initiative, London investors will have the op- it may impose a 25% tariff on the remaining USD 300 vestors turned towards safe havens. In Southeast Asia, view. “Our models signal markets will make portunity to trade the GDRs of Huatai Securities Co billion worth of Chinese goods, reigniting a tit-for-tat the Philippines -where president Rodrigo Duterte’s al- new lows in the summer,” he said. “A break Ltd, one of China’s largest brokerages. The launch squabble that investors had bet was on the brink of lies won a resounding victory in mid-term elections- below December lows would mark the end of the scheme marks a crucial step in China's capital being resolved. China retaliated by increasing the tariff was the region’s sole advancer as other markets de- of the bull market that began in 2009, Some- market opening-up. range from 5-10% to 5-25% on USD 60 billion worth clined. Chinese shares pluged 13% while the A shares thing we expect,” he wrote in a recent re- of imports from the US. The trade battle spilled into market dropped about 9% amid reports that the Trump search note. the technology sector after May 20 when the US ad- administration was considering penalising more Chi- ministration blacklisted Chinese telecommunications nese tech companies after the U.S. placed Huawei on ■ Jamie Dimon GRAPH of the Month giant Huawei on security fears. a blacklist. Meanwhile, with the introduction of further CEO at JPMorgan AMERICAS tariffs, the renminbi fell against the US dollar by 2.5%. Chase. Index Returns in US equities were significantly weaker after the trade EMERGING MARKETS The longest-tenured CEO negotiations between Washington and Beijing col- The MSCI Emerging Markets Index returned - among the U.S. mega- May 2019 (%) lapsed. Companies with significant exposure to China 7.22% with all 11 sectors retreating, led by consumer banks, Dimon said at a were hit particularly hard. Apple fell nearly 6% as in- discretionary and communication services stocks. conference in New York vestors worried about future iPhone sales in China. As Russia, Brazil and India outperformed. India saw the that trade has become an issue. the month ended the situation deteriorated, as US Pres- conclusion of its six-week long general election, with “Trade has gone from being a skirmish to Source: ident Donald Trump unexpectedly announced a new the Bharatiya Janata Party (BJP), led by Narendra being far more important than that. If this MSCI, FactSet, J.P. Morgan Economic 5% tariff rate on Mexican goods that would gradually Modi, winning an absolute majority in the lower house goes south in a bad way, and you have other Research, J.P. Morgan, Asset Management. increase to 25% later this year if the Mexican govern- for their second term. Investors anticipated that the surprises, that could be part of the thing that ment fails to do more to curb the flow of undocu- INDEX GBP USD JPY EUR LOC BJP’s landslide victory would translate into reform changes confidence, changes peoples’ will- mented immigrants migrating to the US. In Latin Equities (MSCI) momentum. In South Africa, equities followed global ingness to invest” he said. “You’re already America, shares were widely mixed. Brazilian stocks markets down. starting to see businesses starting to think rose slightly while Argentina surged more than 13%. MSCI World -2.4 -5.7 -8.1 -5.1 -5.5 about moving their supply lines,” he added. Stocks in Colombia, Chile, and Mexico fell between MSCI USA -3.1 -6.3 -8.7 -5.8 -6.3 Once again, politics has been a major driver of equity “That can obviously slow down business in- 7% and 9%. MSCI Europe -1.7 -5.0 -7.4 -4.4 -4.8 markets and trade remains the number one source of vestment and cause uncertainty of all differ- MSCI UK -2.8 -6.0 -8.4 -5.5 -2.8 EUROPE uncertainty for investors. Market participants will be ent types.” Referring to the stock meltdown European stock market returns were negative as watching how trade negotiations develop, with a close late last year he commented: “I’m just MSCI Japan -0.7 -4.0 -6.4 -3.4 -6.4 stalling trade talks between the U.S. and China eye on the G20 summit at Osaka, Japan at the end of telling people, we should be prepared that MSCI AC Asia -5.4 -8.5 -10.8 -8.0 -7.9 weighed on investor sentiment. Industries most sensi- June where President Trump and Chinese President when we actually have a bad environment, MSCI EM L.Am. 1.4 -2.0 -4.4 -1.4 -1.5 tive to the global trade environment such as autos and Xi Jinping are expected to meet. Regardless of the it’ll be that and worse.” “The markets will MSCI EM -4.0 -2.2 -9.6 -6.7 -6.6 semiconductors fell sharply. The elections to the Eu- outcome of these negotiations, the outlook for growth be worse off than people think and that can ropean Parliament which took place from 22 to 26 and earnings is crucial for the direction of markets cause people to panic a little bit faster than (Data as of 31 May 2019) May were another focus. The centrist parties of the over the rest of the year. they should.” WM 10final_Layout 1 7/11/19 12:11 PM Page 30

4 TRADING VENUES NEWS Issue 10 ⎥ June 2019 ⎥ World Markets Insider

Stay ahead of the market with the most ships this page aims to be your reliable interesting developments from world information centre. Every month we stock exchanges. From performance re- offer you a summary of events and trends BME heads to Paris ports to changes in trading structures, that drive the financial markets so you from c-level executive positions to new stay up-to-date to make the best choices and New York exchanges launches and new partner- regarding your investments.

Johannesburg StockExchange (JSE) is the CSX (Phnom Penh, Cambodia) healthcare, ESG, as well as popular market oldest existing and largest stock exchange in Africa, Equity Express Securities Ex- Cambodia Securities Exchange (CSE) announced weighted indexes, through NZ listed ETFs. ETFs and has dominated trading in the continent for more that 9,457,422 shares worth 120.12 billion riel were make up only 2 – 3% of the total NZ retail managed change(EESE) funds industry. than a centuty. However, new alternative exchanges was awarded an exchange licence in September traded on the Exchange on May 25, breaking the have been established recently and they are bringing 2017 and launched in December 2017 with one highest record of all time since the opening of the SET (Bangkok, Thailand) savings, ease and accessibility to the playing field. listing. EESE is the first independent black owned market in 2012. According to the internal statistic Welcome to South Africa’s new stock exchanges! The Stock Exchange of Thailand (SET) has jointly equity exchange in the country. The new ex- report of CSX, trading was mainly contributed by joined forces with Microsoft (Thailand) to scale up Zar X made its first listing in February 2017. Ad- changes, all located in Johannesburg, aim to fulfil the stock of Sihanouk Ville Port LiVE platform to "Virtual Pitching Platform", an in- vanced technology allows it to offer SA's empowerment objectives by targeting (PAS) with the total trading value tegrated entrepreneur information center for small real-time settlement (T+0), and thus smaller companies and local communities to of 120.02 billion riel where only and medium-sized enterprises (SMEs), startups, and funds and shares are received imme- participate on their exchanges. 0.02 billion riel was traded social enterprises (SEs) to pitch their business plan diately after transacting. through Auction Trading Method online to investors, enabling Thai entrepreneurs to 4AX formally commenced opera- sia (ATM) and the rest of 120 billion grow globally. LiVE platform, which comes on tions on 1 March 2017 and initially riel through Negotiated Trading stream on June 12, also connects to other alliances A seeks to attract equity listings from PACIFIC & Method (NTM). The NTM trade to strengthen and connect the startup ecosystem. frica qualifying Issuers with a focus on which was made into a deal by SET has also collaborated with alliances from both SBI Royal Securities as a stock broker beat all pre-

A companies with a market capitalisa- public and private sectors to drive the startup tion of up to R8 billion. vious records of NTM trades. ecosystem, in accordance with thegovernment pol- A2X began trading in early October 2017 with NZX (Wellington, New Zealand) icy to encourage startups to access capital funding three listings and four of the industry’s leading bro- Smartshares, which is owned by NZX, the New and grow sustainably. The next phase will provide kers on board. It provides an alternative platform Zealand Exchange, is widening out the Kiwi ETF investment knowledge for startup investment from for companies to secondary list and trade their market with eight new listings set to go live on June bloggers to enable investors to exchange views on shares. PHOTO: Etienne Nel ZAR X CEO 6. Smartshares, New Zealand’s only ETF provider, startup investment on webboards. In addition, SET will for the first time offer retail investors access to has also geared up to bridge connection to large cor- artificial intelligence and robotics, innovative porations on incubation support. SANTIAGOX (Santiago, Chile) pany of NYSE announced on June 3 that John Tut- tle has been appointed Vice Chairman and Chief Santiago Exchange presented its new brand that providers, so-called data vendors, can access reinforces its corporate business value, as a tech- Commercial Officer of NYSE Group. In this ex- BME (Madrid, Spain) panded new role, Tuttle will lead commercial out- BME is bringing together Spanish companies market data from Albania via the Vienna Stock nological, innovative, transparent, reliable and Exchange's central data feed. Market data from sustainable company. The launching took part in reach and business development of NYSE Group, with institutional investors in two key Interna- spearhead its efforts to win the largest IPOs, grow tional gatherings, both starting on Albania can potentially reach more than 18,000 the Exchange’s client and stake- end users in about 60 countries in real-time. The holder annual wine tasting event, the exchange’s community of 2,300 listed compa- June 18: the 8th edition of nies, and oversee creation of new offerings for in- the Spanish Equity Conference in one-stop shop solution reduces the administra- that summed up over 500 execu- tive, legal and IT work for clients to a minimum. tives of the financial market. “The dustries such as biotechnology and other growing New York, and the 15th Spring Eu- sectors of the economy. Michael Blaugrund, cur- ropean Midcap Event in Paris. The The Vienna Stock Exchange globally dissemi- new brand marks a new milestone, nates data from 11 markets on one feed: Updates upon completion of our 125-year rently Head of Transactions at the NYSE, has been New York Conference will bring promoted to Chief Operating Officer. together the management teams on securities from Albania, Austria, Bosnia and anniversary. It reflects the pace we Herzegovina, Croatia, Czech Republic, Hungary, have been setting and concurs of Acciona, Applus, CIE Automo- TSX (Toronto, Canada) tive, Ebro Foods, Enagás, Merlin- Kazakhstan, North Macedonia, Serbia and Slove- with a strong positioning and con- Toronto Stock Exchange (TSX) welcomed 14 urope nia, as well as trading data of the Energy Ex- solidation as relevant player in Properties and Metrovacesa with new issuers in May 2019, compared with three in 25 US institutional investors.In ad- change Austria (EXAA). Latin America, our proactivity to the previous month and 23 in May 2018. The new E develop solutions for users and dition, ten Spanish listed compa- mericas listings were 10 exchange traded funds, two life nies (Pharma Mar, Prisa, Quabit, Reig Jofré, market participants, and our work sciences companies, one mining company and towards a more connected role as Tubacex,AB Biotics, ADL Bionatur, Atrys A one real estate company. Total financings Health, Grenergy Renovables and Lleidanet- a financial infrastructure IT raised in May 2019 decreased 14% from the pre- provider", remarked the Santiago Exchange works) will be meeting in Paris with European in- vious month, and were down 25% compared to vestors. Chairman, Juan Andrés Camus. May 2018. The total number of financings in NYSE (New York, USA) May 2019 was 42, compared with 33 the previous WIENER BOERSE (Vienna, Austria) Intercontinental Exchange, Inc., the parent com- month and 65 in May 2018. The Albanian Securities Exchange and the Vi- enna Stock Exchange have signed a market data PHOTO: Artan Gjergji, CEO ALSE and Ludwig cooperation agreement. Financial information Nießen, COO and CTO Vienna Stock Exchange

KASE (Almaty, Kazakhstan) .debt circulating on KASE reached KZT10.8 trln On May 30, 2019 Kazakhstan Stock Exchange MSE (Ulaanbaatar, Mongolia) ADX (Abu Dhabi, UAE) changes and promoting the Exchange as a pre- (KASE) held the annual general meeting of share- Mongolia's Financial Regulatory Commission at its ferred destination for listing and trading in the re- holders who considered key issues of the Ex- Meeting held on 23 May, passed the Decision to list As part of the Abu Dhabi Securities Exchange’s gion. change's operations. In 2018 KASE successfully the total of 466.7 million shares of “Most Fintech” (ADX) strategy aimed at bolster- completed the implementation of its three-year de- NBFI, financial service provider. According to the ing its leading position in the re- QSE (Doha, Qatar) velopment strategy focused on the resolution No. 126, 22.3 percent or 103.8 million gion and extending its cooperation During the Shanghai Global Investment Forum development of the exchange mar- shares of the total outstanding shares of the com-

ast with global financial markets, H.E. 2019, which will be inaugurated on June 19 and ket, increasing the focus of the Ex- pany will be offered to strategic investors and the Khalifa Salem Al Mansouri, Act- is organised by Institutional Investor LLC, and

change and its services on clients, as public by method of bookbuilding. The Company E ing Chief Executive of ADX, met part sponsored by Qatar Stock Exchange (QSE), well as on improving the efficiency was listed on the Mongolian Stock Exchange as a senior officials at the London and competitiveness of the exchange Tier III issuer by the MSE CEO's Order No. A/25 Mr Rashid Bin Ali Almansoori, CEO of QSE, business. The amount of trading on dated March 29, 2019. The proceeds of MNT 4.8 Stock Exchange (LSE) recently. will deliver a presentation in which he discusses the securities market increased by billion shall be used for funding loan sources and Commenting on the visit, H.E. the investment climate in Qatar. He will also dis- 41.2 %, based on the year's results, expanding operations. The issue is underwritten by Khalifa Salem Al Mansouri cuss the characteristics, role and recent perform- KASE Index increased by 7 % to "S G Capital" LLC, and auditing service is provided stressed the importance of opening ance of QSE and provide an overview of a

iddle channels of communication and

urasia 2,304.94 points. Capitalisation of the by "Khulegt Khunnu Audit" LLC, legal due dili- number of key initiatives currently being devel- equity market made up KZT15.5 gence by "Batbayar and Partners" LLC and asset cooperation between ADX and oped, which are designed to meet the needs of in-

E trln, and the amount of corporate valuation by "Coordinate Audit" LLC. major international stock ex- M ternational investors.

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Issue 10 ⎥ June 2019 WORLD MARKETS 5 ⎥ World Markets Dashboard

The list below includes 153 stock ex- York Stock Exchange ranked as the One stop-shop for changes around the world. They are largest by market capitalisation with a presented in an alphabetical order by value of tradable shares amounting to Market Watchers continent. As of May 2019, the New 24 trillion US dollars. 1. Africa BARBADOS Saint Michael BSE CAMBODIA Phom Penh CSX BELARUS Minsk BCSE SWITZERLAND Bern BX SWISS BERMUDA Hamilton BSX CHINA Shanghai SSE BELGIUM Brussels EURONEXT TURKEY Istanbul BORSA ISTABUL ALGERIA Algiers IL BOURSA CANADA Toronto TSX CHINA Shenzhen SZSE BOSNIA-HERZEG.Banja Luka BLSE UKRAINE Kiev UX ANGOLA Luanda BOVIDA CAYMAN ISLANDS (Grand ) SXE HONG KONG Hong Kong HKEX BOSNIA-HERZEG.Sarajevo SASE UK London LSE BOTSWANA Gaborone BSE DOMINICAN REP. S.Domingo INDIA Mumbai NSE BULGARIA Sofia BSE CAPE VERDE Mindelo BVC BVRD INDIA Mumbai BSE CHANNEL ISLANDS Guernsey tise 6. Middle East CAMEROON Duala DSX EL SALVADOR San Salvador BVES INDONESIA Jakarta IDX CROATIA Zagreb ZSE BAHRAIN Manama BHB COTE D'IVOIRE Abidjan BRVM GUATEMALA Guatemala City BNV JAPAN Fukuoka FSE CYPRUS Nicosia CSE JORDAN Amman ASE EGYPT Alexandria EGX CZECH REPUBLIC Prague PSE JAMAICA Kingston JSE JAPAN Nagoya NSE IRAN Tehran TSE EGYPT Cairo EGX DENMARK Copenhagen NASDAQ MEXICO Mexico City BMV JAPAN Tokyo TSE IRAQ Baghdad ISX ETHIOPIA Addis Ababa ECX KAZAKHSTAN Almaty KASE ESTONIA Tallinn NASDAQ MEXICO Mexico City BIVA ISRAEL Tel Aviv TASE GABONE Libreville BVMAC KYRGYZSTAN Bishkek KSE FINLAND Helsinki NASDAQ GHANA Accra GSE NICARAGUA Managua BVDN FRANCE Paris EURONEXT KUWAIT Kuwait City BK PANAMA Panama City BVP LAOS Vientiane LSX KENYA Nairobi NSE MALAYSIA Kuala Lumpur BM GERMANY Frankfurt FWB LEBANON Beirut BSE LESOTHO Maseru MSM SAINT KITTS & NEVIS Basseterre GERMANY Hamburg BOERSE OMAN Muscat MSM ECSE MALDIVES Male MSE LIBYA Tripoli LSM MONGOLIA Ulaanbaatar MSE GIBRALTAR Europort GSX PALESTINE Ramallah PEX TRINIDAD & TOBAGO (Spain) MADAGASCAR Antananarivo mex MYANMAR Vientiane LSX GREECE Athens ATHEX QATAR Doha QSE TTSE MALAWI Blantyre MSE NEW ZEALAND Wellington NZX HUNGARY Budapest BSE SAUDI ARABIA Riyadh TADAWUL UNITED STATES Chicago CHX MAURITIUS Port Louis SEM NEPAL Kathmandu NEPSE ICELAND Reykjavik NASDAQ UAE Abu Dhabi ADX UNITED STATES New York NAS- MOROCCO Casablanca CASA SE PAKISTAN Karachi PSE IRELAND Dublin EURONEXT MOZAMBIQUE Maputo BVM DAQ PAKISTAN Lahore PSE ITALY Milan BORSA ITALIANA NAMIBIA Windhoek NSX UNITED STATES New York NYSE PAKISTAN Islamabad PSE LATVIA Riga NASDAQ LITHUANIA Vilnius NASDAQ NIGERIA Abuja ASCE ● SOUTH AMERICA PHILIPPINES Manila PSE WORLD MARKETS NIGERIA Lagos NSE LUXEMBOURG Lux/urg City LUXSE ARGENTINA Buenos Aires BCBA SINGAPORE Singapore SGX RWANDA Kigali RSE MACEDONIA Skopje MSE ISSN 2668-1552 BRAZIL Sao Paulo BOVESPA SOUTH KOREA Busan KREX SEYCHELLES Victoria SSE MALTA Valletta MSE published by CHILE Santiago SSE SRI LANKA Colombo CSE MONTENEGRO Podgorica MNSE SOMALIA Mogadishu SSE TAIWAN Taipei TPEX EuropaProPress Srl SOUTH AFRICA Johannesburg JSE COLOMBIA Bogota BVC NETHERLANDS Amsterdam 42 Marasesti Blv. EQUADOR Quito BVQ TAJIKISTAN Dushanbe CASE ERONEXT SUDAN Khartoum KSE THAILAND Bangkong SET Bl.1, Sc.A, 2nd fl., Ap.7, HONDURAS Tagucigalpa BVC NORWAY Oslo OSLO BORS SWAZILAND Mbabane SSX UZBEKISTAN Tashkent UZSE 04255 District 4, TANZANIA Dar Es Salaam DSE PARAGUAY Asuncion BVPASA POLAND Warsaw GPW Bucharest, Romania VIETNAM Ho Chi Minh City HOSE PORTUGAL Lisbon EURONEXT TUNISIA Tunis BVMT PERU Lima BVL

World Stock Exchanges Stock Map World ROMANIA Bucharest BVB Tel.+40 314.228.321 UGANDA Kampala USE URUGUAY Montevideo BVM 4. Eurasia RUSSIA Moscow MOEX [email protected] UGANDA Kampala ALTX VENEZUELA Caracas BVC ARMENIA Yerevan AMX RUSSIA Saint Petersburg SPB [email protected] ZAMBIA Lusaka LUSE AZERBAIJAN Baku BSE SERBIA Belgrade BELEX Commerce Registry ZIMBABWE Harare ZSE 3. Asia Pasific GEORGIA Tbilisi GSE SLOVAKIA Bratislava BSSE Code: J40/12206/2016 AUSTRALIA Sydney ASX SLOVENIA Ljubljana LJSE Printed by 2. Americas BANGLADESH Dhaka DSE 5. Europe SPAIN Madrid BME Triantafillopouloi Bros LP ● BANGLADESH Chittagong CSE NORTH AMERICA ALBANIA Tirana ALSE SWEDEN Stockholm NASDAQ Athens-Greece BAHAMAS Nassau BISX BHUTAN Thimphu RSEBL AUSTRIA Vienna WIENER BORSE SWITZERLAND Zurich SIX

●BONDS ●COMMODITIES ●CURRENCIES ●FUNDS ●CRYPTO Tariff worries Hit by global Political un- Long-term bond Impressive send bond yields growth concerns certainty is the funds do well gains for crypto lower Commodities were hit in May as key driver In a challenging month for equi- assets US-China trade talks broke down ties, longer-term higher quality Increasing concerns about the effect The EURUSD pair moved lower Crypto markets saw rapid growth fanning fears of a broad economic bond funds were the best perform- of tariffs on global economic growth during May, unable to hold over in May with total market capital- slowdown. The S&P GSCI Spot ing fixed income funds with re- made investors turn to safe havens in 1.1200 and testing the 1.1100 ization surging by 50 percent, Index was down 8.2% for the turns reaching a high of 4.32%. May. The US ten-year Treasury yield zone. The British pound weak- largely driven by Bitcoin. The month while the Dow Jones Com- The leading funds in the equity was 38 basis points (bps) lower, finish- ened and broke 0.88 as the politi- leading cryptocurrency rose 67 modity Index was down 3.6% . In- and all other funds segment in- ing the month at close to 2.1%, levels cal context worsened in the UK. percent from $5,265 on May 1st to dustrial metals also recorded a cluded mutual funds and ex- not seen since late-2017.In Europe, BOE announcements and eco- $8,900 by month’s end. Sharp ral- negative return, with copper and change-traded funds invested in ten-year German bond yields also fell nomic data were largely ignored as lies in bitcoin’s price on May 11 zinc particularly weak. solar energy gold and precious to a new low of negative 0.2% by the the Brexit uncertainty continued. and May 13 pushed its price tag The S&P GSCI Industrial Metals metals as well as global real estate. end of the month while French, Span- The Japanese yen has been the above $7,000 and then $8,000 for gave back all of its YTD gains in Funds in these categories produced ish and Portuguese yields also fell. In best cross US dollar performer in a the first time in over a year. The May, falling 5.5% for the month. some of the very few positive re- the UK, 10-year gilt yields fell 30bps context of depressed global growth other top performing cryptocurren- By contrast, agricultural commodi- sults in May, as high as 2.64%. as Brexit uncertainty remained height- expectations. The Australian dollar cies were Ethereum, Bitcoin Cash, ties gained strongly. The S&P Emerging market and high yield ened with Prime Minister Theresa May moved down against all crosses EOS, IOTA and NEM, all of which GSCI Agriculture rallied 9.7%. bond funds lagged behind. announcing she is stepping down. (AUDUSD moved under 0.6900) gained more than 50 percent each. Precious metals also posted a posi- Sources: STEELE Mutual Fund Emerging markets bonds produced and the Canadian dollar continued Those not performing so well get- tive return, with the S&P GSCI Expert, Morningstar data and Sus- positive returns but underperformed to decline against the USD breach- ting smaller gains included Stellar, Gold up 1.7% over the month. tainable Research and Analysis. developed market debt. ing and holding over 1.3500. Cardano, and Tezos.

CRUDE OIL GOLD Oil price trend Fairly muted Despite its safe-haven status, gold 2019 had a volatile May, up from $1270 Since the beginning of the year to $1300, back to test $1270 before Brent has increased by $13.74 closing the month at $1305 an oz, as per barrel or 25.02%. The latest trade relations between the U.S. and Brent oil price, as of the end of China deteriorated. The overall di- May 2019, stood at around $67 per rection is not clear as both sides, the barrel. WTI crude oil has increased world’s two largest economies, ap- $11.85, or 25.45% according to pear to believe they have the upper World Bank data. hand in the negotiations. WM 10final_Layout 1 7/11/19 12:10 PM Page 28 I

6 LEGENDARY INVESTORS Issue 10 ⎥ June 2019

Geraldine Seven criteria to Weiss screen stocks with 1. Whether the dividend yield is underval- ued on a historical basis; 2. Whether the company has raised divi- The female dends at an annual compound rate of at least 10% in the past 12 years; 3. Whether the company is trading at a guru of blue book value (BV) of two or less; 4. Whether the company has a P/E ratio of 20-to-1 or less; 5. Whether the dividend payout ratio is chip stocks 50% or less; 6. Whether the debt is 50% or less of the company's total market capitalization; 7. Whether it meets the six Blue Chip Cri- teria When a stock meets all seven of Weiss' “Folks who criteria, the stock is categorised by her ignore the as a "Buy". importance of dividends in Six Blue Chip making stock Criteria market selec- 1. The dividend must have been increased tions are not five times in the past 12 years; 2. Have an “A” credit rating from Stan- investors. dard & Poor’s rating agency; They are 3. Must have at least five million shares in circulation; speculators.” 4. It must have at least 80 institutional in- vestors; 5. It must have a total of 25 uninterrupted years of dividend payouts; 6. Earnings must have increased in at least seven of the past 12 years. Known by names like "the Grande Dame of Dividends" and "The and the repeated margins of dividend yields reliable models of underestimation Dividend Detective", Weiss, is one of the most successful women in and overestimation. According to her, an earnings figure, can be manipulated. “A Companies that don’t meet these criteria the investing industry. She was born in San Francisco in 1926, stud- clever accountant can make earnings appear good or not so good, depending on are removed from her shortlist. ied business and finance at the University of California, Berkeley in the season or the objective. There can be no subterfuge about a cash dividend. It the 1940s and got interested in investing in the early 1960s. is either paid or it is not paid.” Her strategy is simple: Buy shares when they are within 10% of their highest dividend yield and sell them when they get within 2019 Picks nable to find work as a broker or an analyst in the exclusively 10% of their lowest. Weiss' way of investing was always geared towards safe re- In hard economic times Weiss sees as male-dominated field of financial advice, Weiss collaborated with turns. Between 2000 and 2016 the “Lucky 13”, the portfolio of blue chip stocks safe havens the following industries: Fred Whitmore, her broker and published an stock advisory recommended annually by IQT outperformed both the S&P 500 and Berkshire newsletter called Investment Quarterly Trends (IQT) in 1966. In Hathaway. 1. Utilities doing so, she became the first woman to start an investment advi- In 2002, after 36 years of conducting analysis and writing for Investment Quality 2. Pharmaceuticals sory service, successfuly entering a traditionally male-dominated Trends, Weiss handed off editorial duties at Investment Quality Trends to Kelley 3. Food and drink profession. Wright. However, Weiss is still involved with the overall business strategy at IQT Weiss bought Whitmore out a year later. She then began signing her newsletters andher newsletter is still going strong, these days as an online service. The world “G. Weiss” instead of "Geraldine Weiss" for about a decade before revealing of investing contains countless individuals but few people of distinction and in- Success Formula she was a woman, due to the initial rejection her work faced. The business thrived fluence like Weiss, a true investing legend, and a role model for women investors. and Weiss began appearing on talk shows and at investor conferences. Her work Dividends Original and interviews have been published in major finance publications such as Bar- ron’s, The Wall Street Journal, Fortune, Forbes and the New York Times. She “Successful investing in the stock market is not brain Original (1988) from Weiss’ also co-authored two bestsellers on dividend-centric value investing, Dividends surgery. Anyone can be a successful investor.” book Dividends Don’t Lie Don’t Lie (1988) and The Dividend Connection (1995). MktCapM is >= US$ 300 million (basis year 2000) adjusted yearly Simplicity and value, Dividend growth periods >= 5x over past 12 FY the core of a philisophy Outstanding Shares for latest FQ is >= 5 million "After all my reading, Benjamin Graham and his books Security Analysis and Institutional shareholders are >= 80 The Intelligent Investor have really influenced me more than anything, she said. EPS over last 12 FY increased >= 7 FY However, she dropped Graham's 10-point checklist for stock selection and de- Dividend paid out >= 12 past FY parted with her own technique. Weiss embraced her instincts and invented a quite genius strategy for investing, with focus on one single metric: a company's divi- Rank according to current dends rather than earnings. She had three main reasons to believe that dividend Dividend Yield % yield is the best measure of value. Dividends result from revenue; a tendency to (higher is better) increase dividends is a growth notice and an indicator of corporate financial health

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Issue 10 ⎥ June 2019 TRADING & OPINION 7

The Swiss stock market has a Kuwaiti stocks outperformed In May 2019, total capital raised on Australia's market capitalisation of 1.1 tril- frontier and emerging markets ASX was $5.1 bn and the average daily num- lion euros ($1.25 trillion), more in the past year. The main ber of trades was 35% higher. Volatility was 4 than 10% of the pan European 5 Kuwaiti index has extended its 6 0.5% up on the previous month while ex- STOXX 600 index’s total. gain this year to 21%. The pected future volatility was an average of 13.6 Switzerland is home to Europe's small Gulf nation's stock mar- (GRAPH: Australia S&P/ASX 200 Stock 0CEANIA EUROPE fourth-largest stock market. EAST MID. ket, is worth $98 billion. Market Index Jan. 2008-June 2019)

PUBLICLY ifo Institute, is one of the leading economic research institutes in Europe and STOCKS the one most often quoted in the German media. The ifo Institute is a European TRADED COMPANIES think tank that forms a bridge between academic research and public dis- course. Besides the ifo World Economic Survey, they also publish the ifo Busi- Axel Springer Mergers & Acquisi- ness survey as well as a quarterly forecast for the German economy. jumps on KKR tions, IPOs revenues investment talks Axel Springer's share price soared 22% on Economic experts are less May 30 after the German publisher and more revealed talks were underway with with U.S. News and announcements from companies investor KKR over a potential strategic invest- listed on stock exchanges around the world. ment. Springer’s shares had lost more than a Earnings, spin-offs, take-over bids, capital in- pessimisticabout theworld quarter in value over the past 12 months as in- creases, recent and upcoming IPOs, expansion vestors grew impatient over its heavy digital into new markets, signing of alliances, M&As... investments and the drag from circulation de- economy in Q2 2019 clines at media titles including the Bild daily. ■ TSOGO SUN (AFRICA) The Berlin-based company has a market value Africa’s leading hospitality group, Tsogo Sun Ho- The global economy is said to gradually strengthen again over the course of the com- of 4.95 billion euros ($5.51 billion). tels Limited became the second company to list on ing year, as expectations among economic experts have brightened considerably. the Johannesburg Stock Exchange’s main board this year. The listing which took place on June 12, COMMODITIES comes as a result of the Tsogo Sun Hotels Limited unbundling from the Tsogo Sun group. Tsogo Sun ifo World Economic Survey Another Australian Hotels Limited owns, leases and manages hotels in South Africa as well as several sub-Saharan coun- he global economy is said to gradually figure mainly re- gold rush tries, the Seychelles and Abu Dhabi. The JSE has strengthen again, as expectations im- flects the positive Australian Bureau of Statistics data shows 360 companies listed with a total market cap of proved. Assessments of the current situ- economic develop- mining companies are spending more than R16.39 trillion. > T ation were slightly downwardly revised. ments in China and ever looking for the rare commodity across India. GDP for Australia, with almost half a billion ■ TAVAN TOLGOI The latest results of the ifo Economic Cli- 2019 is expected to dollars spent between October and mate show a slight recovery. In the second quarter of (MONGOLIA) be 5.2 percent. Cor- March.Last year, Australia also exported the 2019 the climate indicator rose from -13.1 points to - Gombojav Zandanshatar, the head of Mongolia's ruption and a lack of most gold in its history at 317 tonnes, main- 2.4 points, having previously fallen four times in a row. parliament told the Nikkei Asian Review in an in- skilled labor was taining its status as the second biggest pro- Expectations amongst the +1200 economic experts for terview on May 30 that his country's elections and ducer of the element.Industry analyst firm the coming months have brightened considerably. The cited as an obstacle other factors could impede the market debut of state- IBISWorld forecasts Australia's production same experts assessed the current situation as slightly to the economy. owned miner Erdenes Tavan Tolgoi this year. Pre- of gold will fall to 255 tonnes by 2023, push- worse than previous quarter. The global economy ■ Latin Dorine Boumans viously, Erdenes had unveiled plans to raise up to ing it down to be the world's fourth largest should gradually strengthen again over the course of America PhD, is a survey spe- $3 billion in a public stock offering in Hong Kong producer. the coming year. The global economy is expected to cialist at the ifo Institute within 2019.The Tavan Tolgoi deposit, in the south Latin America is grow by 3.4% this year. Economic momentum in in Germany, in the de- of Mongolia, is one of the world's largest coal mines. the only aggregate world trade should also pick up slightly. Growing in- partment of macroeco- It holds estimated reserves of nearly 8 billion tons of emerging and nomics and surveys. BONDS come inequality is the most frequently cited problem of coking coal. The company last year turned a net developing mar- She manages the World for the global economy. These are the main results of profit of 720 billion tugrik ($272.78 million). Mon- kets where the Economic Survey, a the ifo World Economic Survey. A quarterly report golia plans to hold a general election in 2020. economic climate quarterly economic ex- Portugal issues debt published by the ifo Institute in Munich, Germany. pert survey that covers continued to dete- around 120 countries ■ HIDROELECTRICA ■ Euro Area riorate, from –9.1 on China's market (ROMANIA) to –21.1 balance points. The assessment of the situ- In the euro area, the economic climate recovered Portugal, one of the European countries with ation remains in negative territory. The region’s most State-owned power utility Hidroelectrica has issued somewhat for the second quarter of 2019. The out- the highest level of Chinese investment, has pressing economic problems, according to the WES a public call to acquire legal services for conducting look for the coming half year brightened in many become the first ever euro zone country to experts, are corruption, inadequate infrastructure, an initial public offering (IPO) on the Bucharest euro countries. Expectations improved most notably issue bonds denominated in the Chinese yuan. and a lack of innovation. Stock Exchange that has been expected for years. in France, Belgium, and Greece. Ireland, the Nether- The southern European country announced at The Romanian state controls 80% of the company lands, and Portugal are among the countries report- ■ CIS the end of May its intention to sell 2 billion and investment fund Fondul Proprietatea holds the yuan ($289 million) worth of “Panda” bonds- ing a further deterioration in the economic outlook. The economic climate for the Commonwealth of In- remaining 20%. Hidroelectrica, which operates Respondents expect an inflation rate of 1.5% for the yuan-denominated debt issued by a foreign over 200 plants with an installed capacity of about dependent States (CIS) improved slightly but remains sovereign issuer-with a maturity of three current year. The shortage of skilled workers is the negative overall at –9.8 balance points. The survey 6,400 MW, reported a net profit of about RON2bn most frequently cited problem for the economy. years. (€430mn) for 2018. results continue to indicate weak economic perform- ■ Emerging and Developing Europe ance with no signs of recovery in the months ahead. ■ ARABIAN CENTRES In Ukraine, assessments of the present economic sit- FUNDS (S.ARABIA) The economic climate in emerging and developing uation improved again and are now in slightly posi- Europe continued to improve slightly from –20.7 to tive territory. The economic outlook, however, Sovereign funds' lat- Saudi shopping mall giant Arabian Centres debuted –17.0 points on the balance scale, as expectations clouded over and WES experts’ caution returned re- on the Tadawul, the country’s stock exchange on were revised upwards. The present economic situa- garding the next six months. tion, in contrast was more negatively assessed than est love affair with May 22. Arabian Centres’ share sale was the king- ■ Africa dom’s third biggest since Saudi bank National three months ago. Experts report as the main eco- India Commercial raised $6 billion in 2014, according to nomic problem the lack of confidence in the eco- The economic climate indicator for countries in the Refinitiv data. Arabian nomic policies of their governments. Besides a lack Middle East and North Africa (MENA) rose consid- Private equity deal activity in India surged to Centres CEO Olivier of innovation, most of emerging and developing Eu- erably, but still stands in negative territory at –3.8 bal- $19 billion in 2018, the highest level in at rope faces capital shortages as a further economic Nougarou (pictured) said ance points. Experts in this region revised their least a decade, according to PitchBook data. stumbling block. GDP growth for 2019is predicted in a statement that the IPO assessments of the current situation upwards and be- Sovereign wealth funds and pension funds “will enable us to embark to be 1.9%. This is mainly due to a strong downward came optimistic regarding the months ahead. In Sub- participated in about two-thirds of that on our strategy for future revision of growth perspectives for Turkey. Saharan Africa, the economic climate improved from amount. growth, specifically our ■ Emerging and Developing Asia –20.4 to –4.1 balance points. Assessments of both the ambitious expansion plans present situation and the economic expectations were From this year, Indian-based fund managers to develop eight assets and In emerging and developing Asia, the economic cli- revised upwards, indicating an improving economic are licensed to manage foreigners’ portfolio two expansions within the Olivier Nougarou mate improved, the indicator now points to +2.1 bal- environment. The most cited economic problem in holdings in the country, where previously next five years.” Centres CEO ance points from –17.0 in the previous quarter. This Sub-Saharan Africa is inadequate infrastructure. such assets had to be managed outside India.

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8 EVENTS Issue 10 ⎥ June 2019

EVENTS East & Monetary Policy Meeting South East Economic Europe Calendar Minutes, Crude oil inventories Below is a selection of conferences, trade From 1st July to fairs and exhibitions that take place across 31st August 2019 Central Bank reserves, Interest rate decisions, CPI, GDP, the region in July and August 2019. and more data that affect stock and forex markets 08-11/07/2019 ◆ INT. CONFERENCE ON FINANCE 01/07/2019 ■ ISRAEL Chinese Fixed Asset Invest- 16/07/2019 which measure the change in Athens, Greece ment, GDP and the total value of sales at the Venue: Titania Hotel ■ UK Interest Rate Decision ■ GERMANY Organiser: Athens Institute for Education and Re- Industrial Production Chi- retail level in Canada, ex- Manufacturing PMI The Bank of Israel's "head- German ZEW Economic search nese Fixed Asset Investment cluding automobiles. It is an Markit/CIPS releases the line" rate of interest is the rate Sentiment (Jul) Sponsored by the Athens Journal of Business & measures the change in the important indicator of con- Manufacturing Purchasing of interest announced by the The German Zentrum für Economics, the 17th Annual International Confer- total spending on non-rural sumer spending and is also Managers' Index (PMI) Governor at the end of every Europäische Wirtschafts- ence on Finance will bring together academics and capital investments such as considered a pace indicator which measures the activity liquidity month. These an- forschung (ZEW) Economic researchers of all areas of finance and other related factories, roads, power grids, for the Canadian economy. level of purchasing managers nouncements have been Sentiment Index gauges the disciplines. and property. GDP measures in the manufacturing sector. made since the end of 1993, six-month economic outlook. 31/07/2019 the annualised change in the A reading above 50 indicates and provide the commercial A level above zero indicates ■ ◆ INNOPROM inflation-adjusted value of all USA Ekaterinburg, Russia expansion in the sector; banks with a benchmark for optimism; below indicates FOMC Statement & goods and services produced Venue: Ekaterinburg-EXPO below 50 indicates contrac- their rates on local currency pessimism. The reading is Fed Interest Rate Decision tion. unindexed deposits and compiled from a survey of Organiser: Innoprom Team The U.S. Federal Reserve's Held annually in Ekaterinburg since 2010, INNO- credit. about 350 German institu- 03/07/2019 Federal Open Market Com- PROM is an international industrial fair and the tional investors and analysts. 09/07/2019 mittee (FOMC) members main industrial, trade and export platform in Russia. ■ USA 17/07/2019 vote on where to set the Crude Oil Inventories ■ MALAYSIA It features major companies from Europe, Asia, and Interest Rate Decision rate. The statement is the pri- the Americas. About 80% of the exhibition's visitors The Energy Information Ad- ■ EU mary tool the panel uses to The Central Bank of Eurozone CPI are professional buyers from around the world. ministration's (EIA) Crude communicate with investors Malaysia's Monetary Policy Eurostat releases data on the Oil Inventories measures the about monetary policy. It 09-11/07/2019 Committee votes on where to Consumer Price Index (CPI) weekly change in the number contains the outcome of the set the overnight interest which measures the change ◆ BLACK SEA PORTS & SHIPPING of barrels of commercial vote on interest rates, dis- rate. in the price of goods and Constanta, Romania crude oil held by US firms. cusses the economic outlook The level of inventories in- ■ MEXICO services from the perspective Venue: Hotel del Mar Mamaia and offers clues on the out- Organiser: Transport Events Management Ltd. fluences the price of petro- CPI. The National Institute of of the consumer. It is a key 15/07/19 Australia come of future votes. Black Sea Ports and Shippingisthe biggest annual leum products, which can Statistics and Geography re- way to measure changes in 06/08/2019 Maritime Ports, Shipping and Transport Logistics have an impact on inflation. leases data on the Consumer RBA Monetary purchasing trends and infla- Price Index (CPI) which tion. ■ BRAZL Exhibition and Conference in the Black Sea region 04/07/2019 Policy Meeting now in its 8th year. The event will be hosted measures the change in the BCB Copom Meeting Min- ■ Minutes ■ JAPAN by the Port of Constanta. ARGENTINA price of goods and services Exports & Trade Balance utes. The Central Bank of Industrial Production from the perspective of the The Reserve Bank of Aus- The Ministry of Finance re- Brazil (BCB) releases the 27/07-18/08/2019 The National Institute of Sta- consumer. It is a key way to tralia (RBA) releases the leases exports number which Minutes of its Monetary Pol- tistics releases data on indus- ◆ JARMARK SW measure changes in purchas- Monetary Policy Meeting provides the total US dollar icy Committee (Copom) trial production which Gdansk, Poland ing trends and inflation. Minutes, a detailed record amount of merchandise ex- meeting. measures the change in the Venue: The Main Town in Gdansk 11/07/2019 of the bank's most recent ports on an f.o.b. (free on total inflation-adjusted value 21/08/2019 Organiser: Gdansk International Fair Co. policy-setting meeting, board) basis.. of output produced by man- ■ FRANCE containing in-depth in- ■ INDIA St. Dominic’s Fair was established by the Pope ufacturers, mines, and utili- The French National Institute sights into the economic 18/07/2019 RBI MPC Meeting Minutes Alexander IV in 1260 and is one of the largest open- ties. for Statistics and Economic conditions that influenced The Reserve Bank of India air trade events in Europe. More than 1000 traders, ■ SOUTH AFRICA artists and collectors participate. Antiques, works of ■ RUSSIA Studies releases data on the the rate decision. Interest Rate Decision (RBI) releases the Monetary French Consumer Price Policy Meeting Minutes, a art, silvers, chandeliers, coins, jewellery and more. Central Bank reserves (USD) The South African Reserve Index (CPI) which measures detailed record of the RBI's The Central Bank of the Bank comes to a consensus 24-29/08/2019 the changes in the price of PHOTO: policy setting meeting, con- Russian Federation releases on where to set the interest goods and services purchased Philip Lowe, RBA Gover- taining in-depth insights into ◆AGRA SLOVENIA data on Foreign Exchange rate at which the private (sec- by consumers. nor (2016 – Present) the economic conditions that Gornja Radgona, Slovenia Reserves. A higher than ex- tor) banks borrow rands from Venue: Pomurski sejem 14/07/2019 central bank. influenced the decision on pected number should be by the economy. Industrial where to set interest rates. Organiser: Pomurski sejem d.d. taken as positive to the RUB, ■ CHINA Production measures the 19/07/2019 The breakdown of the MPC 57th International Fair of Agriculture and Food. while a lower than expected Fixed Asset Investment , change in the total inflation- members, interest rate votes Digital agriculture, digitalisation in agro-food preci- ■ CANADA sion agriculture, international economy, new tech- number as negative GDP & Industrial Produc- adjusted value of output pro- tends to be the most impor- Core Retail Sales MoM nologies in agriculture, generational renewal,new tion. National Bureau of Sta- duced by manufacturers, tant part of the minutes. 07/07/2019 Statistics Canada releases production and processing technologies. tistics releases data on the mines, and utilities. data on core retail sales

Digital Pay Expo Promoting 09-11⎥ 07⎥ 2019 Financial Inclusion Lagos-Nigeria he Digital PayExpo, now in its 19th opment professionals converge to discuss and hibition facility. Speakers include: Mrs Adia edition, is one of the premier con- explore innovative solutions to emerging Sowho Managing Director at Mines Nigeria T ferences in the digital payments themes in the financial inclusion space. In ad- Limited, Mr Emeka Okoye Senior Semantic space in Africa. dition, typical personas of the un/underbanked Web Architect at Cymantiks Nigeria Limited, This annual conference hosted by Intermarc, a populace who remain conspicuously absent in Mr Esaie Diei CEO at Enhancing Financial In- financial services consulting firm, aggregates most conferences are well represented in the novation and Access (EFInA), Mr Nic Wa-

FINANCE key industry players both in the supply and de- conference, playing an active role by partici- sunna General Manager at mand-side to discuss and showcase ways of pating in the panel/plenary discussion. With in- Inclusivity Solutions and Mr Robert Magala promoting the financial inclusion agenda in dustry big brands and key decision-makers Digital Finance Product Innovation and Market Nigeria and other emerging economies. Every attending, the conference offers excellent op- Development Specialist at Accion Interna- year, hundreds of C-Suite executives – bankers, portunities for companies to showcase their tional. The conference will be held at Eko investors, start-ups, policy-makers, and devel- products and services in a state-of-the-art ex- Hotel and Suites, Victoria Island, Lagos.

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