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Wednesday, January 15, 2020 Jumada I 20, 1441 AH SPECIAL DEALS: Page 16 Ahlibank announces GULF TIMES Tawfeeq Travel as credit card rewards BUSINESS programme partner

QNB posts QR14.4bn net profi t in 2019; suggests 60% cash dividend NB, the largest fi nancial institution in the Middle East and Af- rica (MEA) region, has reported a 4% year-on-year increase in Qnet profi t to QR14.4bn for the year ended 2019 and suggested 60% cash dividend. The fi nancial results for 2019 along with the profi t distribution are subject to the Qatar Central Bank (QCB) approval. Total assets grew 10% to QR945bn at the end of December 31, 2019, one of the best set of results in the QNB’s history, a bank spokesman said. Solid growth in loans and advances by 10% to QR679bn contributed to the growth in total assets, he said, adding this was mainly funded by strong customer deposits generation which expanded 10% to QR684bn. Thus, the bank achieved a healthy loans-to-deposits ratio of 99.2% at the end of December 31, 2019. The lender’s operational effi ciency (cost-to-income) ratio stood at 25.9%, in addition to achieving sustainable revenue generating sources, which is considered one of the best ratios among large fi nancial institu- tions in the region. The ratio of non-performing loans to gross loans was 1.9% as on De- cember 31, 2019, one of the lowest amongst fi nancial institutions in the MEA region, refl ecting the high quality of the group’s loan book and the eff ective management of credit risk. The group’s conservative policy in regard to provisioning resulted in the coverage ratio at 100% during the review period. Total equity increased by 7% to QR95bn and earnings-per-share stood at QR1.45. The group’s capital adequacy ratio, at the end of 2019, was 18.9%, higher than the regulatory minimum requirements of the QCB and the Basel Committee. QNB Group serves a customer base of approximately 25mn support- ed by 29,000 staff resources operating from more than 1,100 locations along with 4,300 ATMs. During the year, MSCI, a global index compiler, had found QNB con- siderably improved its ESG (environment social and governance) rat- ings in a short span to occupy the top slot among the global peers. MSCI started covering the bank in October 2015 with ‘BB’ rating and in 2016 and 2017, it became ‘BBB’ and in August 2019, it was upgraded to ‘A’ rating due to ‘strong position for meeting digital banking challenges’. QNB’s total assets grew 10% to QR945bn at the end of December 31, 2019, one of the best set of results in the bank’s history GWC’s 2019 net profit Qatar wins bid to rises 9% to QR249.1mn host ‘THE BIZZ

Qatar’s leading logistics provider GWC posted a net profit of QR249.1mn in 2019, up 9% on the previous year. In 2018, it AMEA Awards 2020’ had earned a net profit of QR227.6mn. The company’s board of directors has recommended 20% cash dividend he World Confederation of Businesses (World- to shareholders, which is subject for cob) has chosen Doha as the venue for THE BIZZ discussion and approval during the TAMEA Awards to be held at the Marsa Malaz company’s annual general meeting to be Kempinski Hotel-The Pearl from November 24 to 27. held on February 3. The awards gather and recognise leading business- GWC’s gross revenues reached QR1.2bn es from diff erent regions that contribute to the daily at the end of 2019, while earnings per growth of their local communities, as well as the world share (EPS) increased to QR0.43, in economy. THE BIZZ was established by Worldcob in comparison with QR0.39 at the end of 2005 to off er to the global business community a range 2018. of benefi ts that further their development. GWC chairman Sheikh Abdulla bin The awards recognise standouts in their respective Fahad bin Jassem bin Jabor al-Thani regions, with the overarching aim being networking and said, “Our support for Qatar has formed learning among association members through various the building blocks of our operational activities. excellence. We are pursuing all Qatar was selected from more than 14 destinations, opportunities locally and internationally winning over Kazakhstan and Singapore for the rights to HE al-Baker: Qatar combines cutting-edge services with that ensure we are the provider of choice host THE BIZZ AMEA 2020 awards. With the celebra- traditional hospitality. for innovative logistics and supply tion of THE BIZZ Awards in Qatar, it is estimated that chain solutions to enable the business Sheikh Abdulla and Menon: Supporting Qatar’s growth. the city will receive executives representing around 100 Jesus Moran, founder and president of Worldcob, community to focus on their core companies from more than 50 countries. said, “Celebrating THE BIZZ AMEA 2020 in Doha ex- operations and achieve their objectives.” Bu Sulba Warehousing Park, and the oil Laff an Industrial City, with 1,000 days HE Akbar al-Baker, secretary general of QNTC and cites us deeply. The support of Qatar National Tourism The company’s comprehensive solutions and gas client-specific logistics bases at the RMOP base and some 730 days group CEO of Qatar Airways, said, “We are very pleased Council elevates this experience for our members, al- have set a benchmark for logistics in Ras Laff an Industrial City also led to at the WSSA facility passing with no to host THE BIZ AMEA Awards in Qatar, adding to the lowing them to experience cultural entertainment and excellence in the market, which in a new award by Manateq to GWC for a loss-time-injury, all while maintaining the growing portfolio of global business events that are city tours. THE BIZZ AMEA Awards will host activi- turn has led to new contracts and “develop-build-finance-operate-transfer” exacting safety standards required by choosing Qatar as their venue. ties encouraging business integration, networking, and opportunities. One such opportunity contract for the establishment of the the oil and gas industry. “Hosting over 500 global business events, including tourism, all in an exciting new destination.” was the agreement with FIFA making 1.48mn square meter Al Wukair Logistics “Our strong track record of customer conferences, congresses, and symposia, Qatar com- THE BIZZ Awards have previously been held in Paris, GWC the first Off icial National Supporter Park. approval has created an impressive rate bines cutting-edge services with traditional hospitality, New York, Hong Kong, Rome, Hawaii, Monte Carlo, San of the FIFA Club World Cup Qatar 2019. GWC said it “has earned the trust of of client retention while attracting new ensuring attendees at these events have an unparalleled Francisco, Amsterdam, and Las Vegas, among others, GWC was entrusted with carrying out the market by delivering the best” in customers from all market segments, experience.” off ering members the opportunity to live the BIZZ ex- the complex logistics requirements for logistics and supply chain solutions in as we work together to achieve the Worldcob is an international organisation founded in perience in a diff erent location each year. the tournament as the off icial logistics accordance with the “highest” quality, nation’s strategies, create a sustainable 2004 in the city of Houston, Texas, whose primary mis- In the past, Qatari companies Doha Bank, West Bay provider. health, safety, security, and environment and diverse economy – an environment sion is dedicated to promoting business development Petroleum, and Qatar Airways have been recognised The company’s continued excellence standards. that will ensure the best returns for our worldwide by using specialised initiatives such as THE for business excellence at these awards. Worldcob is in developing logistics infrastructure, The company has celebrated several investors,” stated Ranjeev Menon, group BIZZ AWARDS, Worldcob-CSR, a certifi cate in corpo- inviting all companies that are interested in applying such as the Logistics Village Qatar, GWC safety milestones during 2019 in Ras CEO of GWC. rate social responsibility, and the Worldcob Trust Seal for THE BIZZ AWARDS to submit their application at (WTS), which provides a seal of business confi dence. www.thebizzawards.com. Gulf Times 2 Wednesday, January 15, 2020 BUSINESS

Central bank hub expands on invites Lebanon banks warned to Kuwait, Morocco and Vietnam

Bloomberg on closure if paralysis Frankfurt The Bank for International Settlements has invited the central banks of Kuwait, Morocco and Vietnam to join the institution. It’s the first expansion of the Basel, Switzerland- based body since 2011, and takes total membership to 63. The BIS is often dubbed the central bank of of government persists central banks and serves as forum for policy makers to discuss global economic developments. Bloomberg “Reviewing membership at regular intervals ensures Beirut that the membership base remains in keeping with the Bank’s global profile and its mandate to promote global monetary and financial stability,” ebanese banks are at risk of having to close Bundesbank President Jens Weidmann, who is also if the executive authority remains para- the chair of the BIS Board, said in a statement. Llysed amid a deepening fi nancial and eco- The Committee on the Global Financial System and nomic crisis that’s already seen lenders impose the Markets Committee, two groups based at the measures to restrict the movement of capital. BIS, are also set to grow. Argentina, Saudi Arabia and “The situation is dangerous and cannot con- Thailand were invited to join the former; Indonesia, tinue as such without an executive authority, and Malaysia and Turkey will become members of the we might reach a point where we are forced to latter; Russia and South Africa will be represented close,” MTV television reported yesterday, citing in both. Lebanon’s union of bank employees. The move takes the share of emerging-market Politicians have struggled to form a new gov- economies to about two-fifths of the membership of ernment in the months since protests brought each committee. down the cabinet of Prime Minister Saad Hariri in October. Lebanon’s president named Hassan Diab, an academic and a former education min- ister, to form a new cabinet yet disputes among offi cials have delayed the process. Diab has insisted on a government of experts to help the country manage its crisis while the president and his allies insist on naming minis- ters with political background. Some politicians have demanded that Hariri convene the government in his caretaker capac- ity. Lebanese lenders have tightened restrictions on US dollar withdrawals and transfers abroad since protests erupted against the government’s decision to raise fees and taxes. The central bank has also been rationing for- eign currency and using its dwindling reserves to cover the import of essentials such as fuel and pharmaceuticals. The measures have forced trad- ers to turn to money changers to meet their dol- lar needs, creating a parallel rate higher than the fi xed exchange regime. Violence has been reported on several occa- It’s the fi rst expansion of the Basel, sions against lenders, with some people smash- Lebanese police stand outside the entrance to the Association of Banks in downtown Beirut (file). Lebanese banks are at risk of having Switzerland-based BIS since 2011, and ing ATM machines, storming into banks and to close if the executive authority remains paralysed amid a deepening financial and economic crisis that’s already seen lenders impose takes its total membership to 63 holding sit-ins at branches. measures to restrict the movement of capital. QNB Group Delivers Record Results with Net Profit Reaching QR14.4 billion

Commenting on the Group’s performance, Abdulla Mubarak Al-Khalifa - Group Chief Executive Officer said: “QNB’s clear strategy, disciplined execution, unique international footprint and brand strength delivers another year of sustainable profitable growth”. Key Highlights • Net Profit for the year topped QR14.4 billion, an increase of 4% from last year • Total assets reached QR945 billion, up by 10% from December 2018 • Loans and advances reached QR679 billion, up by 10% from December 2018 • Customer deposits reached QR684 billion, up by 10% from December 2018 • Healthy Loans to Deposits ratio of 99.2% • Strong cost to income ratio of 25.9% • Earnings per share increased to QR1.45, compared to QR1.44 last year • Total Equity reached QR95 billion, up by 7% from December 2018 • QNB Group’s presence spans more than 31 countries serving approximately 25 million customers through more than 1,100 locations, 4,300 ATMs and supported by 29,000 staff

International Presence Total Assets up by 10% to reach QR945 billion Subsidiaries & Associates of QNB Group QNB Group Country % Ownership QNB Capital LLC Qatar 100% QNB Suisse S.A. Switzerland 100% QNB Financial Services Qatar 100% QNB Tunisia Tunisia 99.99% QNB Finansbank Turkey 99.88% QNB ALAHLI Egypt 95% QNB Indonesia Indonesia 92% Al-Mansour Investment Bank Iraq 54% QNB Syria Syria 51% Commercial Bank International UAE 40% Housing Bank for Trade and Finance Jordan 35% Capital strength: Group Capital Adequacy Ratio (CAR) as at 31 December 2019 amounted to 18.9%, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee. Currency headwinds in our core Al Jazeera Finance Company Qatar 20% markets had limited impact on the CAR. Ecobank Transnational Incorporated Togo 20% Top-tier credit ratings QNB Group’s solid financial strength is supported by top tier credit ratings that continues to attract institutional, corporate Net Profit (QR billion) Total Assets (QR billion) and individual customers to bank with QNB, and for investors and markets to believe in the Group’s strong financial position and strategy. 15.0 14.4 13.8 1,000 945 QNB remains the highest-rated bank in Qatar and one of the highest-rated banks in the world with ratings of Aa3 from 13.1 12.4 862 Moody’s, A from S&P and A+ from Fitch. 811 11.3 These ratings are a testament to our capital strength, governance, prudent risk management, business and operating 11.3 750 720 model. This provides us with a competitive advantage to access global capital markets for wholesale funding and enables us to continue our growth and expansion plans in line with our strategy.

539 Diversified sources of liquidity 7.5 500 During 2019, QNB successfully closed the syndication of its EUR2.0 billion three-year senior unsecured term loan facility, successful completion of a USD1.0 billion bond issuance and a USD850 million Formosa bond issuances under its Euro Medium Term Note (EMTN) Programme in the international capital markets. These deals attracted strong interest around the world from key global investors, reflecting investors’ confidence in QNB Group’s financial strength and its position 3.8 250 as the largest financial institution in the Middle East and Africa region. It also reflects their trust and confidence in QNB Group’s strategy over the coming years. Growing international presence 0.0 0 In September 2019, QNB Group obtained the regulatory approvals from Hong Kong Monetary Authority (HKMA) to open a 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 branch in Hong Kong, one of the world’s global financial hubs. The branch will provide a full range of banking products and Net Profit increased by 4% to QR14.4 billion Total Assets increased by 10% to QR945 billion services to corporate entities. Financial institution of choice Proposed Dividends QNB Group’s strong financial strength, customer focused products, expanding international footprint and high quality Cash Dividends of 60% of the nominal value of the share. service offerings enabled QNB to receive the following prestigious awards during the period: QNB, the largest financial institution in the Middle East and Africa (MEA) region, announced that the Board of Directors, The Banker magazine awards for: during its meeting held today has approved its results for the year ended 31 December 2019. • Bank of the Year - Qatar 2019 The Group achieved record financial results for 2019 and in line with QNB Group’s aim of maximising returns to • Bank of the Year - Middle East 2019 shareholders, the Board of Directors have recommended to the General Assembly the distribution of a cash dividend of 60% • Bank of the Year - Egypt 2019 of the nominal share value (QR0.6 per share). The financial results for 2019 along with the profit distribution are subject to In addition, receiving two more awards from The Global Investor’s award for Broker of the Year 2019 and from The Asian Qatar Central Bank (QCB) approval. Banker’s award for Best Biometric Initiative in Qatar 2019. QNB Group in 2019 had another year of outstanding performance, one of the best set of results in the Group’s history, Creating a lasting value demonstrating a steady and sustained growth trajectory. Based on the Group’s continuous strong performance, driven by its strength and international footprint, QNB has been Financial Highlights recognized as the most valuable banking brand in the MEA region by Brand Finance (2019), with its brand value increasing to USD5.04 billion to rise to 60th place globally. QNB continued its outstanding achievements by topping the Middle East (QR billion) December 2019 December 2018 Change and Africa (MEA) region, in the Banker magazine’s Top 1000 World Banks list. QNB Group’s vision is to become a leading Net Proft 14.4 13.8 4% bank in the Middle East, Africa, and Southeast Asia by 2020, in addition to establishing a foothold in highly competitive markets. Operating Income 25.6 24.5 4% Employer of choice QNB Group firmly believes that the personal development of individual employees contributes to the stable and sustainable Total Assets 945 862 10% growth of QNB as a whole. QNB recognises those employees who make an effort to put the QNB Values into practice. QNB Loans and Advances 679 617 10% is striving to continually enhance employee engagement, ensuring that all employees can achieve continual growth, reach Customer Deposits 684 621 10% their full potential and enjoy long and fulfilling careers. Total Equity 95 88 7% QNB Group provides key attention towards talent acquisition, development and retention of nationals in the geographies where it has operations in order to be a good corporate citizen. As part of a targeted career advancement initiative, QNB has 17 Qatari nationals currently deployed in overseas branches and subsidiaries based in the key markets where QNB Key Performance Indicators December 2019 December 2018 operates. As a result of these and other initiatives, QNB’s Qatarisation ratio is 54% which is the highest among all Banking Earnings Per Share (QR) 1.45 1.44 & Financial Institutions in Qatar and was recently recognised as one of the Leading Companies and Institutions in the field of Nationalisation at the 5th meeting of the GCC Ministers of Labour and Social Development Affairs. Cost to Income Ratio 25.9% 25.8% Principles of Holistic Corporate Governance Loans to Deposits Ratio 99.2% 99.4% NPL Ratio 1.9% 1.9% QNB Group strengthened its approach to corporate governance and compliance during the fiscal financial year. QNB Group took multiple measures to enhance the governance strategy of overseas branches and subsidiaries. These measures made Coverage Ratio 100% 104% sure that Overseas Entities had a comprehensive step-by-step guide for corporate governance and compliance system Capital Adequacy Ratio 18.9% 19.0% implementation. QNB’s desire for holism and consistency in corporate governance drives the Group’s developmental needs Liquidity Coverage Ratio 160% 124% and direction. Net Stable Funding Ratio 104% 102% During 2019, QNB Group continued to work upon improvements undertaken in corporate governance and management processes. Enhance long-term shareholder value through sustainable, profitable growth Sustainability Income statement results: For the year ended 31 December 2019, Net Profit topped QR14.4 billion, an increase of In 2017, QNB Group launched a group-wide sustainability strategy across the organization. The strategy has been 4% compared to last year. Operating Income increased by 4% to QR25.6 billion. This reflects QNB Group’s success in developed in alignment with the objectives of the Qatar National Vision 2030 (QNV2030), United Nations Sustainable maintaining growth across the range of revenue sources. Development Goals and the sustainability criteria guidance as set forth by the Qatar Stock Exchange. As a result, QNB The Group’s drive for operational efficiency is yielding cost-savings in addition to sustainable revenue generating sources. Group has improved the way in which it incorporates sustainability criteria into its financing activities, launched initiatives This helped QNB Group to maintain a strong efficiency (cost to income) ratio of 25.9%, which is considered one of the best to reduce environmental impact from QNB Group’s activities and supporting local communities through volunteering and ratios among large financial institutions in the MEA region. donations. Furthermore, the Group strengthened its risk management framework and improved the transparency of its corporate governance business practices. This helps ensure QNB Group operate in a responsible and ethical manner. Balance sheet drivers: Total Assets reached QR945 billion, an increase of 10% from last year. Solid growth in Loans and Advances by 10% achieving QR679 billion, which contributed to the growth in Total Assets. This was mainly funded by QNB Group has recently embarked upon its sustainability journey and firmly believe a proactive approach to managing strong customer deposits generation which helped to increase customer deposits by 10% to reach QR684 billion from 31 environmental, social and governance factors which will strengthen its business resilience in the long-term and support December 2018. QNB Group’s position as the number one bank in the Middle East and Africa (MEA) across all financial metrics. QNB’s robust asset liability management capabilities helped QNB Group to improve its loans to deposits ratio to 99.2% as at During 2019, QNB Group established QNBeyond, our global innovation centre. QNBeyond is both, a think tank for 31 December 2019. innovation and an accelerator. This will enable QNB Group to continue to focus on value creation and future-proof our business to be the bank of choice for millions of customers today and into the future. Credit quality: The ratio of non-performing loans to gross loans amounted to 1.9% as at 31 December 2019, one of the lowest amongst financial institutions in the MEA region, reflecting the high quality of the Group’s loan book and the Group statistics effective management of credit risk. The Group’s conservative policy in regard to provisioning resulted in the coverage ratio QNB Group serves a customer base of approximately 25 million customers supported by 29,000 staff resources operating at 100% as at 31 December 2019. from more than 1,100 locations and 4,300 ATMs.

Financial Highlights

Call +974 4425 2444 or visit qnb.com Gulf Times 4 Wednesday, January 15, 2020 BUSINESS

South Africa consumer CFA franc reforms pose new confidence remains stuck at hurdle for W Africa currency 2-year low

Bloomberg Bloomberg Accra Johannesburg

n ambitious plan to adopt a South African consumer confidence common currency for 15 West remained trapped at a two-year low AAfrican countries will become and economic prospects are expected even more diffi cult to implement once to worsen. France’s former colonies in the region The consumer-confidence index follow through on an announcement stayed at -7 in the fourth quarter, to reform their single payment unit. FirstRand Ltd’s First National Bank At the heart of the matter is whether the said in an e-mailed statement on single currency for the Economic Com- Tuesday. That’s still the lowest level munity of West African States should be since the final three months of 2017 free-fl oating or have a fi xed value. An- and well off the record high of 26 other consideration is France’s continued when Cyril Ramaphosa took over as role to back up the payment unit. president two years ago. Late last month, the West Afri- Business confidence in Africa’s most- can Economic and Monetary Union industrialised economy is already at bloc of eight mostly French-speaking the lowest in more than three dec- countries agreed to start phasing out ades. Weak economic growth, record- the seven-decade-old common CFA high unemployment and the country’s franc. The reforms include removing ongoing electricity-supply crisis and requirements to keep half their re- financial woes are now also hitting serves in France and to give the coun- consumer sentiment. This survey was try a seat on the union’s board. conducted before the country was hit However, France will guarantee the by the deepest power cuts yet early in new currency’s peg to the euro as it did December. for the CFA franc. That means for now Retail-sales growth slowed to the there’s little chance that Nigeria and weakest level in seven months in Ghana, the two biggest economies in October and while business may have Ecowas, will join in. been boosted somewhat by trade French involvement wouldn’t “be over the festive season, the impact tolerated by Anglophone countries,” won’t last long. Malte Liewerscheidt, vice president The economic-outlook index rose at Teneo Intelligence, said in an e- to -14 from -17, which means the mailed note. “Conversely, France majority of consumers still expect would be unable to ‘guarantee’ the South Africa’s economic prospects to exchange rate should a juggernaut like deteriorate over the next 12 months. Nigeria join the club.” Vehicles drive past the headquarters of the Nigerian central bank in Abuja on January 10. Nigeria’s $400bn economy dominates the region and accounts for more The index measuring the appropriate- The establishment of a common than two-thirds of the gross domestic product of Ecowas, about ten times bigger than Ivory Coast, the largest among the CFA franc nations. ness to buy durable goods, such as currency has been pursued by West vehicles and furniture, fell to -18 from Africa for more than two decades to ten times bigger than Ivory Coast, the of GDP and single-digit infl ation. Nigeria said it was “studying” the Ghana is committed to do all it can to -15. help remove trade barriers, ease the largest among the CFA franc nations. Nigeria’s Finance Minister Zainab French-speaking bloc’s proposal and join the West African common cur- “The confidence gains since Mr cost of business and boost economic Last year’s agreed implementation Ahmed said in December only Togo, would respond at a later stage. Ghana rency arrangement, there are many Ramaphosa’s election have now growth in a region of more than 380mn date of 2020 for the common cur- a $5bn economy and one of the bloc’s is keen to become part of a common unresolved issues regarding the com- been completely reversed and South people. Nigeria’s $400bn economy rency was already highly ambitious, smallest, has met all of the conditions. currency arrangement, but insists mon currency,” Bank of Ghana gov- Africa’s grim economic reality has dominates the region and accounts with countries having to meet eco- That’s even as the International Mon- that last year’s declaration allows only ernor Ernest Addison said earlier this become apparent to consumers,” for more than two-thirds of the gross nomic convergence criteria that in- etary Fund estimated gross govern- for a fl exible rate regime. month. This “would take time to re- FNB said. domestic product of Ecowas, about clude keeping public debt below 70% ment debt at 72.6% of GDP last year. “Although the government of solve.” Huawei helps China overtake Germany in receiving US patents

Bloomberg China and Germany. International “We really look at new patents as Washington Business Machines Corp retained its an indication of innovation and we title of top recipient of patents for regularly review and prune our pat- the 27th year, with a record 9,262 ent assets,” said Jason McGee, chief uawei Technologies Co broke patents, far ahead of No 2 Samsung technology offi cer for IBM Cloud into the top 10 recipients of Electronics Co and No 3 Canon Inc. Platform. “We may get rid of ones HUS patents last year, accord- Overall, the patent offi ce issued that we don’t think are strategic or ing to an analysis of fi lings with the 333,530 patents, an all-time high could be better served with someone US Patent and Trademark Offi ce, the and a 15% jump after a decline in else.” latest sign that Chinese companies 2018. Cady said the increase likely IBM also announced that it’s joined are aggressive in pursuing the US lead refl ects eff orts to release a bottle- the License on Transfer, or LOT, Net- in global technology. neck over what can qualify for a pat- work, which was co-founded by Red The telecom company’s 2,418 ent, such as in the fi elds of artifi cial Hat Inc IBM bought the software patents, along with 2,177 new pat- intelligence. company for $34bn last year. ents issued to display-screen maker AI, cloud computing, blockchain Group members pledge that all BOE Technology Group, help propel and security were among the top ar- network members will get a licence China into the rank of fourth-biggest eas for IBM, the Armonk, New York, to any patent that ends up with recipient of US patents, behind Japan company said. The IBM patents re- what’s known as a “patent assertion and South Korea but ahead of Ger- fl ect the work of more than 8,500 entity,” meaning a company that many for the fi rst time, according to inventors over 45 states and 54 coun- doesn’t make products and whose the analysis by Fairview Research’s tries, the company added. sole purpose is to extract royalties IFI Claims Patent Services. While IBM may be consistently the from those who do. The group helps “China’s growing rapidly but top recipient of patents, its holdings protects automakers and retailers they’re still way behind the US in aren’t the largest, IFI found. That ti- who are just entering the technol- terms of patents,” said Larry Cady, a tle belongs to Samsung Electronics ogy arena that’s often marked by senior analyst with IFI. Co of South Korea, with Canon Inc lawsuits. The patent offi ce issued 333,530 of Japan the second-largest corpo- “If you want to be any successful patents in 2019. Nearly 80% were rate owner of patents. The diff erence, company, you have to be a successful issued to people and entities from Cady said, is that IBM doesn’t keep high-tech company,” said Ken Sed- fi ve countries: the US, Japan, Korea, all of its patents. don, head of the LOT Network.

An attendee wears a badge strip with the logo of Huawei and a sign for 5G at the World 5G Exhibition in Beijing (file). The telecom company’s 2,418 patents, along with 2,177 new patents issued to display-screen maker BOE Technology Group, help propel China into the rank of fourth-biggest recipient of US patents, behind Japan and South Korea but ahead of Germany for the first time, according to the analysis by Fairview Research’s IFI Claims Patent Services. Gulf Times Wednesday, January 15, 2020 5 BUSINESS

CORPORATE RESULTS JPMorgan posts record profit as bond trading rebounds

branches 2019 in many new cities where it the bank had opened potentially millions of Trading revenue rose nearly 31% as markets previously had not been located. bogus accounts. steadied during the last three months of 2019, Deposits grew 5% compared to a year ago. Net income applicable to common stock fell to with the gains driven by a 49% surge in fixed- CEO Jamie Dimon said the US consumer $2.55bn, or 60 cents per share, in the fourth- income trading. continued to be in a strong position. “Their quarter ended December 31, from $5.71bn, or Equities trading fell 23% due to weak wages are up, their assets are up, their $1.21 per share, a year earlier. performance in derivatives. investments are up, their home values are up,” Overall, Wells Fargo reported adjusted earnings Revenue from its equities business rose 15% to he said on a call with reporters. of 93 cents per share compared to a consensus $1.5bn. The bank’s net income rose to $8.52bn, or $2.57 of $1.12, according to estimates from Refinitiv. Citi also reached a key profitability target. per share, in the quarter ended December31, Revenue of $19.86bn came in below The bank hit a return on tangible common from $7.07bn, or $1.98 per share, a year earlier. expectations of $20.12bn. equity (ROTCE) of 12.1% for 2019, above the goal Net revenue rose 9% to $29.21bn. Analysts, on The bank’s net interest income fell 11% from of 12% it promised investors for the year. average, had expected the bank to earn $2.35 a year earlier as the US central bank lowered ROTCE is a widely watched measure of how well per share on revenue of $27.94bn, according to borrowing costs three times last year in a bid to a bank uses shareholder money to generate Refinitiv data. sustain the more than decade-long economic profits. Wells Fargo expansion amid the prolonged US-China trade Total loans, excluding home lending, rose 3% at war. JPMorgan. Wells Fargo & Co’s profit slumped 55% in the The lender’s mortgage income, however, rose to Net interest income, or the diff erence between fourth quarter as new boss Charles Scharf set $783mn from $467mn a year earlier, benefiting what a bank pays for deposits and earns from aside another $1.5bn for legal costs related from the lower interest rates. loans, was up 1% at Citi, compared with declines to the bank’s sales scandal and promised Citigroup at JPMorgan and Wells Fargo & Co. “fundamental changes.” The US Federal Reserve cut interest rates three The bank racked up operational losses of $1.9bn Citigroup Inc beat analysts’ estimates for fourth- times last year, crimping banks’ lending margins in the final quarter of the year as it set aside quarter profit yesterday, boosted by growth in and their ability to raise revenue. more cash to deal with pending litigation related its credit card business and a jump in trading Net income applicable to common shareholders JPMorgan Chase & Co posted its biggest-ever but said there were examples of strength across to its fake-account scandal that erupted more revenue. rose to $4.98bn, or $2.15 per share, in the three annual profit yesterday as its bond trading the business. than three years ago. North American branded cards, which account months ended December 31, from $4.31bn, or business bounced back in the last three months Debt underwriting fees in the investment bank Wells Fargo, the fourth-largest US lender by for a majority of the bank’s consumer banking $1.64 per share, a year earlier. of the year, setting an upbeat tone for the big US rose 11 % year over year, in part thanks to the assets, has leaned on cost cuts to stabilize its revenue, clocked double-digit revenue growth Excluding the impact of a tax benefit, Citi earned banks reporting this week. increased activity in bond issuance which made bottom line amid sluggish revenue growth and for the second straight quarter, rising 10% from $1.90 per share. Revenue rose at all but one of JPMorgan’s four for competitive pricing conditions, she said. a raft of fines and costs relating to illegal sales a year earlier. Revenue, net of interest expense, rose about 7% main businesses, beating analysts’ expectations Overall revenue at JPMorgan’s corporate and practices first uncovered in 2016. The third-largest US bank by assets has been to $18.38bn. and sending the bank’s shares 2.2% higher. investment banking unit, which houses its Lowering costs were a cornerstone of former leveraging its robust card business to help grow Analysts had expected a profit of $1.84 per share Executives were positive and clear-eyed about trading and underwriting businesses, surged chief executive off icer Tim Sloan’s recovery deposits by pitching checking and savings and revenue of $17.86bn, according to IBES data the outlook for 2020, as well. 31% to $9.47bn. plan, but the bank acknowledged last year accounts to card holders. from Refinitiv. “Our outlook heading into 2020 is constructive, The consumer and community banking that increased spending on technology and underpinned by the strength of the US business, which accounts for almost half of the compliance to satisfy regulators were going to consumer,” said JPMorgan chief financial off icer bank’s revenues, reported a $14bn, or 3% rise, keep costs elevated. Jennifer Piepszak on a call with analysts. “In over last year. The bank has hired thousands of employees to spite expected slower global growth and the Chase credit card customers used their plastic its risk management teams in an eff ort to please backdrop of geopolitical uncertainties, we to the bank’s benefit this holiday season. regulators. remain well-positioned.” The bank reported credit card, merchant Total non-interest expense jumped 17%, due to At JPMorgan, the only business to post a decline services and auto revenue surged $6.3bn or 9%, the litigation costs and higher expense related was commercial banking, which reported with credit card loans up 8%. to salaries and employee benefits. revenues fell 3% on lower net interest income But revenues were under pressure this quarter Scharf said the bank’s cost structure was simply and higher expenses due to investments in the from lower deposit margins because low too high, while also recommitting to beef up its business. interest rates meant that the bank earned less approach to regulation. The bank’s bond trading revenue jumped 86% on deposits it loaned out. “During my first three months at Wells Fargo compared to a year earlier when financial Home lending revenue was also down 5% to my primary focus has been on advancing markets were walloped industry-wide by a sell- $1.3bn. our required regulatory work with a diff erent off driven by trade and global growth concerns. Total loans, excluding home lending, rose 3% in sense of urgency and resolve,” Scharf said in a Revenue from equity markets rose 15% to the quarter. statement. $1.5bn. Home loans were down 17%. Wells is operating under heavy scrutiny, Piepszak conceded that its returns in bond- Deposits flowed into the consumer bank in the including an unprecedented cap on its balance trading benefited from “a favorable comparison fourth quarter, helping to off set a decline in sheet by the Federal Reserve, as it tries to against a challenging fourth quarter last year,” loans, as Chase opened around 100 new bank rebuild its reputation since it was revealed that US oil prices shift to discount before seasonal demand lull

Bloomberg London/Singapore

S oil prices for prompt deliv- ery traded at a discount this Uweek for the fi rst time since November, as easing political ten- sions in the Middle East pushed the market’s focus onto the coming post- winter lull in demand. West Texas Intermediate futures held near $58 a barrel on Tuesday, briefl y slipping to their lowest in six- weeks as concerns that the US and Iran were headed for confl ict over the killing of an Iranian general continued to recede. The price for unleaded fuel is displayed on a sign outside a Royal Dutch Shell As the war fears abate, attention gas station at night in Louisville, Kentucky (file). As the war fears abate, is turning to an anticipated pullback attention is turning to an anticipated pullback in US refiner demand as plants in US refiner demand as plants un- undergo maintenance once the scramble for heating fuels passes. dergo maintenance once the scram- ble for heating fuels passes. Feb- tors had piled up bullish wagers in the modities strategy at Saxo Bank A/S in ruary WTI contracts were about 2 weeks after the Organization of Pe- Copenhagen. cents cheaper than March, a condi- troleum Exporting Countries and its West Texas Intermediate crude tion known as contango that usually partners announced surprise produc- for February delivery rose 22 cents reflects weakness in the immediate tion cuts in early December, pushing to $58.30 a barrel on the New York market. their net-long position to an eight- Mercantile Exchange as of 11.17am in Despite the wave of selling, mar- month high of 288,430 contracts in London. It fell to $57.72 earlier, the ket fundamentals are showing some the period to January 7, according to lowest intraday level since December signs of strength. China’s oil imports data from regulators. 6, when Opec’s extra supply cutbacks reached a record last year, as a trade “Positive fundamentals driven by were unveiled. pact between Beijing and Washington economic green shoots and the US- Brent futures for March settlement that could improve demand appears China trade deal have been tempo- rose 35 cents to $64.55 a barrel on the near, and a cease-fi re between duel- rarily overshadowed by the need to ICE Futures Europe exchange after ling factions in Opec nation Libya has reduce elevated – and now unprofi t- dropping 1.2% on Monday. The glo- fallen apart. able – long positions held by funds,” bal benchmark crude traded at a $6.23 Hedge funds and other specula- said Ole Sloth Hansen, head of com- premium to WTI for the same month.

Onshore wind installations drop again in UK

Bloomberg according to data from industry of the industry has installed a total London association RenewableUK. of 8,500 megawatts of capacity, up The UK government halted subsidies from less than 1,000 megawatts a for onshore wind four years ago after decade ago. The UK built fewer onshore wind residents in rural areas expressed “Onshore wind is one of the cheapest farms in 2019 than the year before, concern that more installations low-carbon technologies in the the second annual decline and an were blighting the visual appeal UK, quick to build, and it’s hugely indication that government eff orts of the countryside. The move runs popular as the government’s own to curb support for the industry are counter to eff orts to rein in fossil opinion polls show 78% of people biting. Last year, 23 onshore wind fuel emissions, with wind advocates support it,” said Rebecca Williams, farms with a total capacity of 629 noting turbines are one of the RenewableUK’s policy head. “These megawatts started producing energy cheapest forms of renewable energy. figures highlight that the current across Britain. That was down from The stagnation that land-based wind approach is falling short on delivering 2018’s result and distant from the developers are feeling contrasts with renewable energy capacity at the 2,600 megawatts installed in 2017, a boom for off shore wind. That part level needed for net zero.” Gulf Times 6 Wednesday, January 15, 2020 BUSINESS

Fitch Nissan denies reported reaffi rms Pakistan’s rating at plans to split with Renault B-negative

AFP Tokyo Internews Islamabad issan is “in no way” planning to end its partnership with Re- oting weak external Nnault, the Japanese auto giant and fi scal positions and insisted yesterday after a report sug- Nslowing economy, Fitch gested a divorce was possible in the Ratings has affi rmed Pakistan’s wake of the Carlos Ghosn scandal. long-term Foreign Currency is- Britain’s Financial Times, citing suer default rating at ‘B-nega- “several people with knowledge of the tive’ with a stable outlook. matter”, said on Monday that senior The New York-based agency – executives at the scandal-hit fi rm were one of the three major global rat- speeding up work on secret plans for a ing agencies – noted high debt- potential parting of ways with France’s to-GDP ratio, economic growth Renault. rate of 2.8% and fi scal defi cit But in a statement, Nissan fi rmly at the elevated 7.9% level be- denied the claims. “Nissan is in no way sides high infl ation and interest considering dissolving the alliance,” payments and weaker revenue the statement said. growth as key weaknesses. “The alliance is the source of Nis- It said the tighter macroeco- san’s competitiveness,” the fi rm said, nomic policies were further adding that it will look to continue de- slowing GDP growth, estimated livering “win-win results for all mem- at 2.8% in FY20 from 3.3% in ber companies”. FY19 and gradually recovery to The partnership, which also in- 3.4% by FY21. cludes Japan’s Mitsubishi Motors, has Infl ation has also continued to been troubled since the shock arrest of rise sharply from the cost pass- its former chief Ghosn on charges of fi - through of the currency depre- nancial misconduct. ciation and increases in energy Ghosn, who last month jumped bail tariff s. in Japan and fl ed to Lebanon, claims Fitch forecast infl ation to the charges against him were cooked average 11.3% in FY20 against up by disgruntled Nissan executives 6.8% in FY19 and expected the hoping to block his plans to more SBP to keep the policy rate at closely integrate the automaker with the current peak of 13.25% in the Renault. coming months, before modest In a news conference in Lebanon, he cuts towards the end of FY20 as claimed the alliance was now on the infl ationary pressures begin to rocks and directionless. fade. The alliance’s new chief, Jean-Do- Fitch appreciated the reduced minique Senard, earlier hit back at the external debt, fl exible exchange reports of a planned split, telling Bel- rate and improved fi scal disci- gian daily L’Echo the claims had “no pline but highlighted govern- connection to the current situation of The logos of Renault and Nissan are seen in front of dealerships of the companies in Reims, France. Nissan is “in no way” planning to end its partnership with Renault, the ance, security and structural re- the alliance”. Japanese auto giant insisted yesterday after a report suggested a divorce was possible in the wake of the Carlos Ghosn scandal. forms as critical risk areas. (The “The Renault-Nissan alliance is not agency had downgraded Paki- dead! Soon we will show you why,” he the report as “malicious information” had indeed gone through a rough Nissan dropped 2.96 % to 618 yen de- ating its original spirit” and planning stan’s long-term debt rating to said in an interview published yester- in an interview on the French TV sta- patch”. spite the fi rm company denial. future investments. B-negative from B in December day. tion CNEWS. The 20-year partnership between Shares in Renault slumped 2.82 % on A source close to Nissan told AFP 2018). The ‘B-negative’ rating “I ask myself, where does this sort of He said it aimed to “destabilise the Nissan and Renault, whose alliance is Monday, but were stable in yesterday that the leaks probably came from “a refl ects a challenging external information come from? I am not sure group, cause trouble at a moment based on cross-shareholdings without morning trading. few disgruntled souls” inside the com- position characterised by a high it comes from a place of goodwill.” when, on the contrary, we are in the a joint structure, has been badly shak- Senard said the alliance was “no- pany who wanted to “vent their frus- external fi nancing requirement Meanwhile in Paris, French Econo- process of rehabilitating the alliance en by the Ghosn scandal. where near” the point of collapse and tration”, adding that rebuilding trust and low reserves, weak public my Minister Bruno Le Maire dismissed between Renault and Nissan, which At the close on the Tokyo market, insisted its leaders were busy “recre- between the two fi rms “will take time”. fi nances including large fi scal defi cits and a high government debt-to-GDP ratio, and weak governance indicators. It said Pakistan was making progress towards strengthen- India names career central banker Patra as deputy governor ing external fi nances and taking positive steps on the fi scal front, but considerable risks remain. Bloomberg from his wealth of experience the eeting. He added it was ap- Still, external fi nances re- Mumbai and strong understanding of propriate to allow the central main fragile with relatively low monetary policy.” bank’s previous rate cuts to “pass foreign-exchange reserves in the Patra, who has a doctorate in through and be in readiness to context of an elevated external ichael Patra was ap- economics from the Indian In- back signs of traction with reso- debt repayment schedule and pointed deputy gover- stitute of Technology, was con- lute and calibrated policy ac- subdued export performance”, Mnor of the Reserve Bank sidered a monetary policy hawk tions.” the Fitch said. of India, beefi ng up the leader- until late 2018. The growth outlook remains Pakistan’s liquidity ratio is ship of the institution at a time He made a sharp reversal un- weak given rising unemploy- 111.4%, much weaker than the of economic and banking stress. der Governor Shaktikanta Das, ment and ongoing stress in the historic ‘B’ median of 161.2%. Patra takes offi ce for a period voting for fi ve successive inter- fi nancial sector and the banking Fitch forecast a further nar- of three years from the date of est-rate cuts in 2019. system. rowing of the current account joining or until further orders, While the MPC has main- The RBI expects growth in the defi cit to 2.1% of GDP in the year according to a statement from tained an easing bias to revive current fi scal year to reach 5% – ending June 2020 (FY20) and the Appointments Committee of economic growth, Das this which would be the weakest pace 1.9% in FY21, from 4.9% in the the Cabinet. month said price stability was since 2009. last fi scal year. He’ll be one of four deputy the central bank’s prime objec- Patra fi lls a vacancy created by But it noted that import com- governors at the bank. tive as persistently high infl ation the departure of Viral Acharya, pression remained the predomi- A career central banker, disproportionately aff ects the who quit as the deputy in charge nant driver of the narrowing def- 59-year-old Patra is currently poor. of monetary policy in July before icit, facilitated by a depreciation executive director in charge of A shock 7.35% surge in head- his term ended. of the rupee against the dollar the RBI’s research department line infl ation in December boosts Acharya, a noted monetary of around 30% since December and has a seat on the six-mem- the case for policy makers to policy hawk and outspoken cen- 2017 and tighter monetary con- ber Monetary Policy Committee. keep interest rates on hold for tral banker, left the RBI seven ditions. The statement wasn’t clear longer after an unexpected pause months after his ex-boss Urjit Exports are forecast to grow what role he’ll take as deputy last month. Patel quit amid a clash with the modestly from a low base. governor, but an RBI offi cial said In voting to keep rates steady government over issues includ- Fitch forecast gross liquid it’s most likely he’ll be in charge in December, Patra said India ing lending rules and interest foreign-exchange reserves rising of monetary policy and remain needs urgent policy responses to rates. to around $11.5bn by FY20 end, on the MPC. counter the growth downturn. Das became governor in De- $7.2bn at FY19 end. “Patra is the fi rst career RBI “This will hinge around a re- cember 2018 and has been work- The SBP has also reduced its economist to rise to the level of kindling of animal spirits in a ing to restore relations with the net forward position by over deputy governor in nearly three business-conducive environ- government, including cutting $3bn since June, contributing decades,” said Siddhartha San- ment, highlighting the impor- interest rates, paying a hefty to a considerable improvement yal, chief economist at Bandhan tance of close and continuous dividend to the fi nance ministry in its net foreign-exchange re- Bank in Kolkata. “The MPC and policy co-ordination,” he said, and easing up on bank lending serves, although these remain Patra: To take charge as deputy governor of the Reserve Bank of India. the RBI will continue to benefi t according to the minutes of restrictions. negative.

Cash-stuff ed hideaway revealed in confession of China banker

Bloomberg like making regular trips to the supermarket,” linked to local government debt risk. assistant vice chairman at China Banking Shanghai the 57-year-old Lai, wearing a gray-blue polo China is in the midst of a record wave of Regulatory Commission, Yao Gang, who was shirt, said on the programme. “I didn’t spend bond defaults as growth slows, with even vice chairman of China Securities Regulatory a cent. state-backed firms now missing bond pay- Commission and Wu Xiaohui, who oversaw The former chairman of one of China’s bad It’s all confiscated in the end.” ments. Detained in 2018, Lai is accused of Anbang Insurance Group Co. banks has confessed to taking millions Confessions such as Lai’s are becoming a taking 1.65bn yuan in bribes, people familiar They were all sentenced to at least 16 years of yuan in bribes which he kept in metal more common ritual in China as President Xi with the matter have said. in prison. cabinets in a Beijing apartment he nicknamed Jinping tightens his grip on the Communist He was found to own a large number of More than 1mn government off icials have “the supermarket.” Party-ruled nation. properties, luxury watches, cars, gold and art been punished in Xi’s anti-corruption cam- Lai Xiaomin, former head of China Huarong Xi is also contending with the slowest collections. paign, according to the off icial People’s Daily. Asset Management Co, has been charged economic growth in three decades, rising The revelations about Lai have been a hot In another high-profile case, China’s Com- with taking bribes, corruption and bigamy in financial risks, a trade dispute with the US and topic among top policy makers, regulators munist Party last week expelled former China one of China’s biggest financial corruption growing opposition to the Communist Party and state-owned entities. Development Bank Chairman Hu Huaibang cases. in Taiwan and Hong Kong. The central bank has said that Lai’s “shock- after finding “serious” disciplinary and legal On Monday, he confessed in a state TV doc- Authorities are taking an increasingly ing” activities caused severe losses for the violations. umentary that he preferred cash payments tough stance on corporate malfeasance, state, undermining both financial security and Lai oversaw Huarong from 2012 until he and said he would drive trunk loads of bills broadening Xi’s seven-year corruption crack- stability. State media calls him the nation’s ran into trouble in 2018. to the apartment, where more than 200mn down into the nation’s boardrooms. most corrupt financial off icial. It’s one of four companies set up in 1999 to yuan ($29mn) was uncovered. In a speech Monday, Xi said the state will A slew of off icials have been caught up in help clean up a banking system riddled with Lai: Charged with taking bribes, corruption and bigamy in one of “I got the money and just left it there, just also punish people responsible for corruption Xi’s dragnet, including Yang Jiacai, a former bad debt. China’s biggest financial corruption cases. Gulf Times Wednesday, January 15, 2020 7 BUSINESS

Hong Kong pledges China registers 7.6% rise $1.3bn in economic relief amid in exports in December unrest

Reuters Beijing Reuters Hong Kong hina’s exports rose for the first time in five months in De- ong Kong leader Carrie Ccember and by more than ex- Lam yesterday pledged pected, signalling a modest recovery HHK$10bn ($1.3bn) in relief in demand as Beijing and Washington measures to prop up the economy agreed to defuse their prolonged trade as it grapples with months of an- war. ti-government protests that have The world’s largest economies are hurt business confi dence in the set to sign a Phase 1 trade deal today, global fi nancial hub. marking a significant de-escalation Hong Kong sank into recession but not an end to a dispute that has for the fi rst time in a decade in the rattled financial markets and weighed third quarter as the sometimes heavily on global business confidence. violent protests forced businesses China’s December exports rose to shut and scared away travellers. 7.6% from a year earlier, customs data The proposed new spending showed yesterday. brings the Chinese-ruled city’s to- The median forecast from a Reuters tal stimulus to HK$35bn ($4.5bn) poll of analysts had been for a 3.2% since this summer, when protests rise in shipments, following Novem- escalated. ber’s 1.3% drop. The measures target the elderly, Imports also surpassed expecta- unemployed and low-income resi- tions, jumping 16.3% from a year dents, with plans to provide cash earlier and boosted in part by higher handouts among other benefi ts. commodity prices. The government said it also aims The Reuters poll had forecast 9.6% to increase statutory holidays from growth versus 0.5% in November. 12 to 17 days, subject to discussions While comparisons with a weak with the business sector. December last year flattered both fig- The protests fl ared in June over ures, they also pointed to improving a now-withdrawn extradition bill demand, both globally and in China, that would have allowed crimi- analysts said. nal suspects in Hong Kong to be China posted a trade surplus of sent to mainland China for trial in $46.79bn in December, compared courts controlled by the Commu- with the poll’s forecast for a $48bn nist Party. surplus, up from November’s surplus The demonstrations, which of $37.93bn. have escalated into calls for greater For all of 2019, its exports proved Buses wait to be exported in Lianyungang port. China’s exports to the US fell 12.5% in 2019, compared with a rise of 11.3% in 2018. democracy, have also been pow- remarkably resilient to trade tensions, ered by a broad perception that rising 0.5%, while imports fell 2.8%. $24.60bn. China exports to the Unit- Overall sentiment improved last over intellectual property. China’s the risk of further complications and Beijing is meddling in the former China’s trade surplus with the ed States fell 12.5% in 2019, compared month after the two sides reached the Vice Premier Liu He is in Washington re-escalation remains. British colony’s aff airs, despite a United States for December stood at with a rise of 11.3% in 2018. Phase 1 deal, which is expected to cut from January 13-15 to sign the interim “Our judgment is Phase 1 will not guarantee of wide-ranging auton- $23.18bn, according to Reuters cal- Imports from the United States fell tariffs and boost Chinese purchases agreement. put an end to Trump Trade Wars,” omy when it returned top Chinese culations based on customs data, 20.9%, versus a 0.7% rise in the previ- of US farm, energy and manufactured However, analysts say the deal does analysts with MUFG Bank wrote in a rule in 1997, and by complaints of down from November’s surplus of ous year. goods while addressing some disputes not spell the end of trade tensions and research note prior to the data. police brutality.

Beijing to ramp up US car, aircraft and energy purchases in trade deal: Source US drops China as

Reuters Washington currency manipulator China has pledged to buy almost $80bn of additional manufactured goods from the United States over the next two years as part of a trade war truce, according to a ahead of trade deal source, likely giving a much-needed boost for planemaker Boeing. Under the terms of the trade deal to Bloomberg be signed on Wednesday in Washington, Washington China would also buy over $50bn more in energy supplies, and boost purchases of US services by about $35bn over the same he Trump administration on two-year period, the source told Reuters Monday lifted its designation on Monday. Tof China as a currency cheat, The Phase 1 agreement calls for Chinese saying the nation has made “enforce- purchases of US agricultural goods to able commitments” not to devalue increase by some $32bn over two years, or the yuan and has agreed to publish roughly $16bn a year, said the source, who exchange-rate information. was briefed on the deal. The change in the US stance was When combined with the $24bn US outlined in the US Treasury Depart- agricultural export baseline in 2017, the ment’s semiannual foreign-exchange total gets close to the $40bn annual goal The BMW Vision iNEXT electric sport utility vehicle stands on display at the report to Congress. touted by US President Donald Trump. Auto Shanghai 2019 show in China. Among the most popular US-built vehicles The document was released two The numbers, expected to be an- sold in China are BMW and Mercedes-Benz sport-utility vehicles. days before America and China are set nounced today at a White House signing to sign a phase-one trade agreement ceremony between Trump and Chinese lysts and traders doubted whether it could excess domestic assembly capacity on the in the East Room of the White House Vice Premier Liu He, represent a stagger- absorb such a big increase. Relying on rise, it’s diff icult to see the need for China at 11:30am in Washington, according ing increase over recent Chinese imports the United States so heavily could expose to purchase significantly more US-built to people familiar with the plans. of US manufactured goods, raising China to price and supply risks, they said. cars. The document listed no major US some scepticism over how it would be Trump had mainly touted the increased Among the most popular US-built vehi- trading partner as a currency ma- achieved. farm exports, which would benefit a major cles sold in China are BMW and Mercedes- nipulator among the 20 economies it Two other sources familiar with the political constituency that has been bat- Benz sport-utility vehicles. monitors for potential manipulation. Phase 1 trade deal agreed with the rough tered by Chinese retaliatory tariff s during China also has major industrial policy Switzerland was added to the mon- breakdown of the purchases, without his 18-month trade war with Beijing. goals to dominate the very manufacturing itoring list, while China, Japan, Korea, providing specific numbers. Company executives have been waiting sectors in which it has pledged to pump Germany, Italy, Ireland, Singapore, A spokesman for the US Trade Repre- eagerly for details of what other US goods up purchases of US goods, further fuelling Malaysia, Vietnam remained. sentative’s off ice could not immediately be China would be buying more of, aside scepticism. “China has made enforceable com- reached for comment. from farm products, after 18 months of tit- Many economists and experts are mitments to refrain from competitive Lighthizer on Monday called the deal for-tat tariff s that have stalled US business dubious that the Phase 1 trade agreement devaluation, while promoting trans- a “huge step forward” for US-China trade investment. will be implemented as written, despite parency and accountability,” Treasury relations and “a really, really good deal for The $80bn increase for manufactured what US off icials describe as an important Secretary Steven Mnuchin said in a the United States.” He told Fox Business goods includes significant purchases of enforcement clause in the deal. statement released Monday in Wash- Network that Beijing’s compliance would autos, auto parts, aircraft, agricultural That enforcement mechanism allows ington. Steven Mnuchin, US Treasury Secretary, speaks during a House Financial be monitored closely. machinery, medical devices and semicon- grievances to be aired through escalating The Asian nation’s commitment Services Committee hearing in Washington. “China has made enforceable “We expect them to live up to the letter ductors, said one of the sources, without consultations that would reach Chinese was made as part of the fi rst phase of a commitments to refrain from competitive devaluation, while promoting of the law. We’ll bring cases, we’ll bring ac- giving the names of any specific suppliers. Vice Premier Liu He and US Trade Repre- US-China trade deal, according to the transparency and accountability,” Mnuchin said in a statement released on tions against them if they don’t,” Lighthizer The aircraft would likely be built by Boe- sentative Robert Lighthizer. 45-page report. Monday in Washington. said. ing Co, the No 1 US exporter, whose new If a US claim of Chinese non-compliance The US and China have been nego- When the Phase 1 trade deal was struck sales to China have ground to a halt over cannot be resolved, Washington would tiating since the August 5 designation The designation in August further Currency policy has emerged as on December 13, US off icials said China the past two years. have the right to reimpose tariff s on Chi- on China, which came in response to escalated the trade war with Beijing Trump’s latest tool to rewrite glo- had agreed to buy $200bn in additional That would be a welcome shot-in-the- nese goods in proportion to the economic what the Treasury said was Beijing’s after the country’s central bank al- bal trade rules that he says have hurt US farm products, manufactured goods, arm for the aerospace giant, which has damage alleged. “concrete steps to devalue its cur- lowed the yuan to fall in retaliation to American businesses and consumers. energy and services over the next two seen shares and earnings plummet as But nothing would preclude China from rency.” new US tariff s. He has made foreign-exchange years, compared to the baseline of 2017. its best-selling 737 MAX aircraft remains retaliating, returning the two sides to the “China has never been a currency The report urges China to “increase policy a key piece of trade deals with They said they would publish targets grounded due to two fatal crashes in 2018 current status quo, people familiar with manipulator and the US latest conclu- public understanding” between Mexico, Canada, South Korea and for the four broad areas, but would keep and 2019. the deal said. sion is in line with the truth and inter- the People’s Bank of China and the China. Treasury has also expanded the details of specific products classified to The source providing the purchase Oil traders and analysts were also national consensus,” Chinese foreign “foreign-exchange activities of the number of countries whose currency avoid market distortions. figures expressed scepticism about manu- doubtful whether China would be able to ministry spokesman Geng Shuang state-owned banks, including in the and economic policies are scrutinized The $32bn agriculture increase over factured goods pledges by Beijing since purchase an extra $50bn of energy prod- told reporters in Beijing yesterday. off shore RMB market.” Treasury said to 20 from 12. 2017 was confirmed by Myron Brilliant, the the US-China trade deal does not address ucts, including crude oil, liquefied natural “China will continue to deepen our the PBoC “appears to have largely re- Countries with a current-account US Chamber of Commerce’s head of inter- any of the non-tariff barriers that have kept gas (LNG) and imports of petrochemical currency market reform, improve our frained” from intervention in 2019. surplus with the US equivalent to 2% national aff airs, who spoke to reporters on these US goods out of the Chinese market raw materials such as ethane and liquefied currency system and keep the rate ba- The report was offi cially due in of gross domestic product are now eli- Monday in Beijing. for decades, including procurement petroleum gas (LPG). sically stable at an equilibrium level.” mid-October but was delayed as the gible for the list. While seeing room for China to boost rules, product standards and subsidies to Beijing-based SIA Energy analyst Seng Bloomberg News reported earlier US and China negotiated over trade. Other thresholds include persistent purchases of wheat, soybeans, sorghum, Chinese state-owned firms. Yick Tee said the target was “too aggres- Monday that the Treasury would lift Designation as a currency manipu- intervention in markets for a nation’s dried sistillers grains and some corn, ana- With Chinese car sales flagging and sive and unlikely to be achieved”. the designation on China, news that lator comes with no immediate penal- currency, and a trade surplus of at sent the yuan to a six-month high. ties but can rattle fi nancial markets. least $20bn. Gulf Times 8 Wednesday, January 15, 2020 BUSINESS

Eurozone bond yields Asia markets extend global dip from near 2-week rally as trade tensions ease highs

AFP Reuters Hong Kong London

sia equities extended a global enchmark 10-year gov- rally yesterday, with the US de- ernment bond yields Acision to no longer designate Bin the euro area inched China a currency manipulator a further down yesterday, as debt markets sign of easing tensions between the steadied after a sharp selloff the economic titans. previous session on hopes of an The Treasury announcement came easing of trade tensions between days before the two sides are due to the United States and China sign off on the fi rst part of a wider trade After rising to near two-week agreement that has helped fan a rally in highs on Monday, most 10-year world markets. bond yields edged back down in It also led to a sell-off in safe-haven what analysts said was largely assets with the yen at a seven-month position squaring. low and gold down almost 1%, while oil But they added that the out- was also struggling with the US-Iran look for bond markets remained fl are-up seemingly in the rear window somewhat bearish given an eas- for investors. ing in US-China trade tensions, Asia was given a fi rm lead from Wall a growing sense that the worst is Street, where all three main indexes over for the eurozone economy ended higher – with the Nasdaq and and a rush of new bond supply at S&P 500 hitting fresh records – on re- the start of the new year. ports the US was about to remove the The United States and China, manipulator label from China. the world’s two biggest econo- Donald Trump accused Beijing in mies, are just a day away from August of weakening its yuan currency signing a Phase 1 trade agree- “to steal our business and factories”, re- ment. stating a long-standing grievance. In a sign of easing tensions, But soon after the end of trade on the US Treasury said on Monday Monday, the Treasury said in its semi- that China should no longer be annual report to Congress that the unit designated a currency manipu- had strengthened and Beijing was no lator. longer keeping it artifi cially weak. “There does appear to be some The yuan jumped more than 1% demand for European rates today at one point yesterday before easing but over the course of the next slightly. six weeks, we still reckon bearish The currency is up more than 4% forces will win out,” said Peter from an 11-year low touched in Sep- Chatwell, head of rates strategy tember. at Mizuho. “The yuan is the purest and best “Data is marginally improving barometer to gauge the market’s view and that should set the buying on US-China trade tension,” said Axi- tone in credit spread products Trader’s Stephen Innes. “With the yuan versus rates.” strengthening ahead of the ‘phase one’ A pedestrian looks at an electronic stock board outside a securities firm in Tokyo. Japanese shares were among the biggest gainers yesterday, rising 0.7% to 24,025.17 as Economic growth and infl a- deal signing, it’s indicating the poten- the dollar advanced against the yen owing to a rush out of safety – giving a boost to Japan’s exporters. tion in the eurozone are showing tial for further improvement in trade “good signs of stabilisation” af- relations.” is a key bone of contention in the White Mumbai and Bangkok edged up 0.1%, $1,600 for the fi rst time in seven years reports from top banks including Citi- ter a slowdown, European Cen- The US reversal of China’s status as a House and a major catalyst of the trade while Jakarta rose 0.2%. on the Iran crisis but the lowering of ex- bank, Goldman Sachs and JP Morgan. tral Bank board member Yves manipulator “is a most precise and de- war. However, profi t-taking saw Hong pectations for a confl ict with the US has “Our expectation is a solid earnings Mersch said yesterday. fi nitive de-escalation of trade tension Tokyo was among the biggest gain- Kong drop 0.2% to 28,885.14 and seen it tumble more than four % from season – nothing extraordinary but The ECB holds its fi rst meet- to date and provides a less congested ers, rising 0.7% to 24,025.17 as the dol- Shanghai slip 0.3% to 3,106.82 follow- its recent high. nothing really terrible,” Kristina Hoop- ing of the year next week. road as we pivot to phase two of the lar advanced against the yen owing to ing recent advances, while Manila fell The improving China-US outlook er, chief global market strategist at In- Germany’s benchmark 10- broader trade agreement”, he added. a rush out of safety – giving a boost to 0.7%. saw it drop 0.9% yesterday. vesco told Bloomberg TV. year bond yield was down almost Data yesterday showed China’s trade Japan’s exporters. Improving confi dence also hit gold, As well as Wednesday’s signing, in- “The environment is so accommo- 2 basis points at -0.21%, having surplus with the US narrowed 8.5% in Singapore and Seoul each put on which is a popular go-to asset in times vestors are also looking forward to cor- dative that it really is supportive of risk briefl y touched its highest level 2019, which will likely play well in the 0.4%, Sydney added 0.9%, Wellington of turmoil. porate earnings season, which kicks off assets, including equities, even if we in almost two weeks at -0.188%. White House, where the huge disparity climbed 0.7% and Taipei gained 0.6%. The yellow metal last week broke in earnest this week with the release of have a lacklustre earnings season.” Most other 10-year bond yields in the bloc were down around 1-2 bps on the day. “You had some good news in terms of China coming off the list of currency manipulators Market melt-up may and so you would have expected Yum China gears up for HK listing bond prices to extend losses,” said Andy Cossor, a rates strat- have gone too far, Bloomberg push to lure marquee Chinese fi rms to raise in China, had more than 8,900 restaurants egist at DZ Bank in Frankfurt.” Beijing funds in a city that has been shaken by across the world’s second-largest economy So, I think it might be a case that months of pro-democracy protests. as of the end of September. people got ahead of themselves some measures indicate It could also be a vote of confi dence in the It hired about 450,000 people in the yesterday and are covering short um China Holdings Inc is working fi nancial hub’s future. country, according to its latest presentation. positions.” with China International Capital Hong Kong Exchanges & Clearing Ltd The company in August agreed to buy a Hefty supply was also ex- Bloomberg always get more extreme,” he YCorp and Goldman Sachs Group Inc has said it’s seeing a spike in inquiries about controlling stake in Huang Ji Huang Group, pected to limit any bond mar- Hong Kong wrote. “That doesn’t mean it’s on the preparations of a second listing in second listings from Chinese companies af- a Chinese-style simmer pot restaurant op- kets price gains. Bond yields a good bet.” Hong Kong, fuelling the wave of US-listed ter Alibaba Group Holding Ltd’s $13bn share erator. and prices move in the opposite JPMorgan Chase & Co ana- Chinese companies returning to a market sale in November. Yum China rejected a buyout off er from direction. Italy sells three, seven he risk-on rally that lysts are among those pointing that’s closer to home. The HKEX is discussing with Chinese an investor group led by Hillhouse Capital and 20-year government bonds rolled from December to “potential vulnerability in The operator of Pizza Hut and KFC res- technology fi rms including Trip.com Group Corp in 2018, Bloomberg News reported at yesterday, while Spain launched Tright on into the start of the event of negative shocks,” taurants in China is working with the banks Ltd and NetEase Inc for possible share sales that time. the sale of a new 10-year bond 2020 may be due for a breath- strategists including Nikolaos on the share sale, according to people famil- in the city, people with knowledge of the Shares of Yum China have risen 88% via a syndicate of banks. er, according to an increasing Panigirtzoglou wrote in a re- iar with the matter. matter told Bloomberg News earlier this since its 2016 debut, outperforming the According to a lead manager, number of market analysts. search report Friday, though The listing could take place as soon as this month. Since 2010 Yum China was spun 60% gain in Dow Jones Industrial Average. investor demand for the new They point to indicators in- they note that their house view year, said the people, who asked not to be off from Louisville, Kentucky-based Yum! IFR reported last week that Yum China bond was in excess of €30bn. cluding valuations and posi- is still bullish on equities. identifi ed as the information is private. Brands Inc in 2016. is considering a listing in Hong Kong which The Dutch meanwhile are ex- tioning in futures and options Speculative positions in US A successful share sale by New York-list- The unit, which also operates Mongolian could raise as much as $2bn, citing uniden- pected to tap an existing Green that suggest stocks may be get- equity futures by asset manag- ed Yum China would bolster Hong Kong’s hotpot chain Little Sheep as well as Taco Bell tifi ed people. bond for an estimated €1.3bn. ting overextended. ers and leveraged funds “stand That’s after the MSCI All- at even higher levels than the Country World Index added beginning of 2018,” they wrote, about 1.4% since the month citing data from the US Com- began, building on last year’s modity Futures Trading Com- EM stocks hover near 19-month peak 24% jump – the biggest annual mission, drawing comparisons Indian equities increase since 2009. with a period which saw strong Reuters yuan dropped in August. While the broader “There is still plenty to be gains in January turn into a drop London optimism revived demand for emerging concerned about,” Andrew of 10% for the S&P 500 Index rise to fresh high market assets towards the end of 2019, a Lapthorne, global head of through the close on February 8 recent Reuters poll found currencies in the quantitative research at Societe that year, coupled with a vola- Emerging market stocks idled near region will again cede ground to the dollar Generale SA, wrote in a research tility meltdown that led to the Bloomberg quickened to a five-year 19-month highs yesterday in the run-up to this year as a global economic recovery note on Monday. “Valuations implosion of some VIX-related Mumbai high in December, a report an expected signing of an initial US-China remains fragile at best. are a big risk going forward.” products. after Monday’s market close trade deal this week, while the Russian Developing economies are also grappling Forward price-to-earnings The investing public may also showed. rouble was weighed down by the state’s with political unrest and faltering growth ratios for US growth stocks be starting to worry. India stocks climbed to a fresh Wholesale-price inflation also foreign currency purchases. at home, which has prompted many have reached levels only seen The latest American Asso- record for a second day as rose 2.59% from a year earlier. An index of emerging market equities central banks to slash interest rates in an in eight months over a span of ciation of Individual Investors investors weighed the outlook “We expect mid- and small- was flat at 0850 GMT, after gaining for effort to boost inflation. three decades of data, accord- Sentiment Survey showed that for corporate earnings against cap companies to outperform, three straight days on an easing in US-Iran The Turkish lira eased 0.4%, ahead of a ing to Lapthorne. pessimism among individual higher consumer-price with no possible negative tensions and optimism around the Phase 1 central bank meeting tomorrow. That only increases the focus investors about the short-term inflation. surprise on earnings. Sino-US trade agreement. Economists are split between those who on fourth-quarter results sea- direction of the stock market is The S&P BSE Sensex rose High inflation, though led by Chinese stocks ended yesterday’s session expect another interest rate cut at the son, which kicked off in earnest at a six-week high. 0.2% in the last hour of the seasonal factors, will have an about 0.3% lower as traders booked profits meeting and those who see no change on Tuesday with a blockbuster Peter Berezin, chief global session to close at 41,952.63 impact on banks due to the after the recent rally. after the central bank halved the rate last report from JPMorgan Chase strategist at BCA Research, in Mumbai after trading little surge in bond yields,” said A K But global stocks hovered near record year. The Russian rouble fell about 0.3% & Co and solid numbers from said on Friday that he advised a changed for most of the day. Prabhakar, head of research at highs, with the world’s attention squarely versus a steady dollar. Citigroup Inc. neutral view on global equities The NSE Nifty 50 Index also IDBI Capital Market Services on the trade pact between Washington and The ministry said on Monday it would Sundial Capital Research and high-yield credit for the advanced to a new high with in Mumbai. Beijing that is due to be signed today. increase its daily purchases of foreign analysts flagged another warn- next quarter, even though he is a gain of 0.3%. Software Fifteen of 19 sector indexes “The fact that markets have priced in currency to the equivalent of 18.2bn ing sign in recent days: options positive on a 12-month outlook exporter Wipro Ltd after compiled by BSE Ltd rose, the signing tomorrow does leave an roubles (about $300mn) over the next buying has overwhelmingly and recommends buying the market hours declared led by a gauge of consumer- opening for downside risks if there is month. favoured calls over puts in US dip in the event of a retreat of October-to-December net goods companies. any disappointment,” said Trieu Pham, South Africa’s rand tumbled more than markets this month. about 5% from current levels. income of Rs24.6bn ($347mn), HDFC contributed the most emerging market debt strategist at ING. half a per cent in its fourth straight day of “As a percentage of total vol- “Elevated bullish sentiment, which met analyst estimates. to the Sensex advance, “But for now, investors are taking an declines. ume, speculative-call buying against the backdrop of ongo- Its larger peer, Infosys increasing 1.2%, while Hero optimistic stance.” A survey on Tuesday showed consumer last week hit a level never seen ing uncertainty about the out- Ltd, announced quarterly MotoCorp had the largest In signs of increasing goodwill between confidence in Africa’s most industrialised in the past 20 years, and there look for global manufacturing net income on Friday that gain, rising 1.8%. S&P BSE the world’s top two economies, the US economy remained at a near two-year was little in the way of pro- and an uneasy truce between beat the highest analyst Bankex, a gauge of bank Treasury Department on Monday dropped low in the fourth quarter, as the country tective-strategy volume as an the US and Iran, poses a near- predictions. stocks, slipped 0.4% with Yes its designation of China as a currency struggles with prolonged power cuts and offset,” said Sundial president term headwind to risk assets,” Consumer-price inflation Bank Ltd dropping 8.4%. manipulator – a label it had applied as the choppy economic growth. Jason Goepfert. “Extreme can he said. Gulf Times Wednesday, January 15, 2020 9 BUSINESS

KUWAIT KUWAIT OMAN

Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume

Al-Eid Food Ksc 74.00 5.71 216,407 Oman Packaging 0.27 0.00 - Al-Madar Finance & Invt Co 93.90 4.33 160,125 Qurain Petrochemical Industr 312.00 1.30 496,519 Oman Oil Marketing Company 0.93 0.00 - Gulf Petroleum Investment 19.80 4.21 6,442,058 Advanced Technology Co 810.00 0.00 - Oman National Engineering An 0.12 0.00 - Mabanee Co Sakc 925.00 0.33 967,544 Ekttitab Holding Co Sak 15.00 0.00 156,011 Oman Investment & Finance 0.11 0.00 - Inovest Co Bsc 70.50 2.92 1,898,425 Real Estate Trade Centers Co 26.00 0.00 - Oman Intl Marketing 0.52 0.00 - Al-Deera Holding Co 20.70 1.97 170,000 Acico Industries Co Kscc 127.00 0.79 334,766 Oman Flour Mills 0.60 0.00 - Mena Real Estate Co 38.80 -1.02 3,200,794 Kipco Asset Management Co 91.00 1.11 94,153 Oman Fisheries Co 0.08 0.00 - Amar Finance & Leasing Co 38.00 0.00 - National Petroleum Services 1,250.00 -1.96 20,723 Oman Europe Foods Industries 1.00 0.00 - United Projects For Aviation 512.00 0.00 - Alimtiaz Investment Group 124.00 0.81 2,055,682 Oman Education & Training In 0.22 0.00 - National Consumer Holding Co 54.90 0.00 - Ras Al Khaimah White Cement 65.00 0.00 - Oman Chromite 3.64 0.00 - QATAR Amwal International Investme 36.00 9.09 3,000 Kuwait Reinsurance Co Ksc 163.00 0.00 - Oman Chlorine 0.35 0.00 - Equipment Holding Co K.S.C.C 19.90 5.85 120,600 Kuwait & Gulf Link Transport 64.00 3.23 433,030 Oman Ceramic Company 0.42 0.00 - Company Name Lt Price % Chg Volume Arkan Al Kuwait Real Estate 89.00 2.30 109,300 Humansoft Holding Co Ksc 3,050.00 -1.96 1,008,356 Oman Cement Co 0.24 0.00 - Gfh Financial Group Bsc 69.30 1.91 988,815 Automated Systems Co Kscc 70.00 0.00 - Oman Cables Industry 0.53 0.00 - Energy House Holding Co Kscp 22.20 -2.63 342,148 Metal & Recycling Co 30.00 175,709 Oman & Emirates Inv(Om)50% 0.00 - Zad Holding Co 13.97 0.22 5,139 33.80 0.07 Kuwait Co For Process Plant 264.00 -0.38 110 Gulf Franchising Holding Co 0.00 - Natl Aluminium Products 0.00 - Widam Food Co 6.84 0.59 6,980 75.10 0.17 Al Maidan Dental Clinic Co K 1,220.00 0.00 - Al-Enma’a Real Estate Co 0.00 3,896,132 National Real Estate Develop 0.00 - Vodafone Qatar 1.16 1.75 4,284,832 71.00 5.00 National Shooting Company 9.80 3.16 207,930 National Mobile Telecommuni 2.60 38,136 National Mineral Water 0.00 - United Development Co 1.54 0.65 4,924,627 790.00 0.09 Al-Ahleia Insurance Co Sakp 430.00 0.00 100,800 Sanad Holding Co Kscc 0.00 - National Life & General Insu 0.00 - Salam International Investme 0.51 -2.67 1,934,016 0.00 0.31 Wethaq Takaful Insurance Co 25.00 0.00 - Unicap Investment And Financ 2.52 459,182 National Gas Co 0.00 - Qatar & Oman Investment Co 0.58 0.69 1,492,694 52.90 0.24 Salbookh Trading Co Kscp 48.70 1.46 224,103 Al Salam Group Holding Co 8.77 17,090,721 National Finance Co 0.00 - Qatar Navigation 6.09 0.16 337,742 31.00 0.14 Aqar Real Estate Investments 76.00 0.00 - Al Aman Investment Company 0.00 100,000 National Detergent Co Saog 0.00 - Qatar National Cement Co 5.57 1.46 46,486 58.50 0.70 Hayat Communications 70.00 0.00 - Mashaer Holding Co Ksc -0.40 539,342 National Biscuit Industries 0.00 - Qatar National Bank 21.00 0.24 2,670,187 75.00 3.92 Soor Fuel Marketing Co Ksc 124.00 0.81 53,179 Manazel Holding 2.97 1,053,887 National Bank Of Oman Saog 0.00 - Qatar Islamic Insurance 6.80 0.00 - 38.10 0.18 Tamkeen Holding Co 5.20 0.00 - Tijara And Real Estate Inves 0.00 - Muscat Thread Mills Co 0.00 - Qatar Industrial Manufactur 3.65 2.82 27,392 49.00 0.08 Alargan International Real 106.00 10.07 16,883 Jazeera Airways Co Ksc 1.01 53,244 Muscat Insurance Co Saog 0.00 - Qatar International Islamic 9.38 -0.21 871,382 1,105.00 0.78 Burgan Co For Well Drilling 78.60 20.92 9,000 Commercial Real Estate Co -0.53 475,000 Muscat Gases Company Saog 0.60 - Qatari Investors Group 1.79 1.13 62,860 93.00 0.17 Kuwait Resorts Co Kscc 59.50 1.19 582,789 National International Co 2.56 10 Muscat Finance 0.00 - Qatar Islamic Bank 16.00 2.89 1,481,042 80.00 0.05 Oula Fuel Marketing Co 126.00 0.80 45,618 Taameer Real Estate Invest C 1.85 1,733,079 Muscat City Desalination Co 0.00 - Qatar Gas Transport(Nakilat) 2.42 0.83 1,840,324 27.50 0.10 Palms Agro Production Co 40.20 0.00 - Gulf Cement Co -3.35 1,503,002 Majan Glass Company 0.00 - Qatar General Insurance & Re 2.47 0.00 - 49.00 0.18 Mubarrad Holding Co Ksc 73.10 1.11 3,266,063 Heavy Engineering And Ship B 0.00 598,542 Majan College 0.00 - Qatar German Co For Medical 0.57 -0.53 603,803 400.00 0.17 Shuaiba Industrial Co 155.00 0.00 - National Real Estate Co 2.81 3,238,625 Hsbc Bank Oman 0.00 - Qatar Fuel Qsc 22.99 0.83 262,371 91.50 0.12 Aan Digital Services Co 12.70 0.79 5,682,308 Al Safat Energy Holding Comp 0.00 265,592 Hotels Management Co Interna 0.00 - Qatar First Bank 0.72 0.14 316,050 21.00 1.25 First Takaful Insurance Co 45.00 0.00 - Kuwait National Cinema Co 0.00 - Gulf Stone 0.00 - Qatar Electricity & Water Co 16.50 0.79 554,890 1,040.00 0.12 Kuwaiti Syrian Holding Co 33.00 0.00 - Danah Alsafat Foodstuff Co -1.31 248,990 Gulf Mushroom Company 0.00 - Qatar Exchange Index Etf 10.47 0.46 32,993 15.10 0.31 National Cleaning Company 71.00 2.90 863,635 Independent Petroleum Group -0.62 3,000 Gulf Investments Services 0.00 - Qatar Cinema & Film Distrib 2.20 0.00 10,000 479.00 0.07 United Real Estate Company 61.00 0.00 119,129 Kuwait Real Estate Co Ksc 3.92 3,092,636 Gulf Invest. Serv. Pref-Shar 0.00 - Al Rayan Qatar Etf 2.40 3.49 2,000 106.00 0.11 Agility 815.00 1.62 2,621,719 Salhia Real Estate Co Ksc 0.24 314,212 Gulf International Chemicals 0.00 - Qatar Insurance Co 3.26 1.24 1,947,931 410.00 0.11 Kuwait & Middle East Fin Inv 84.20 0.24 464,520 Gulf Cable & Electrical Ind 1.69 403,396 Gulf Hotels (Oman) Co Ltd 0.00 - Qatar Aluminum Manufacturing 0.77 -0.26 1,714,113 480.00 5.70 Fujairah Cement Industries 44.10 5.00 33,500 Kuwait Finance House 1.62 12,977,519 Global Fin Investment 0.00 - Ooredoo Qpsc 6.99 0.29 1,427,104 815.00 0.07 Livestock Transport & Tradng 176.00 -2.76 247,956 Gulf North Africa Holding Co 0.00 - Galfar Engineering&Contract 0.00 - National Leasing 0.71 0.57 372,155 61.50 0.07 International Resorts Co 9.10 0.00 850,610 Hilal Cement Co 0.00 - Galfar Engineering -Prefer 0.00 - Mazaya Qatar Real Estate Dev 0.74 0.14 78,826 100.00 0.39 National Industries Grp Hold 240.00 2.56 9,770,211 Osoul Investment Kscc 2.74 7,957,803 Financial Services Co. 0.00 - Mesaieed Petrochemical Holdi 2.35 1.73 5,089,940 75.00 0.06 Warba Insurance Co 64.50 5.74 3,886 Gulf Insurance Group Ksc 0.00 - Financial Corp/The 0.00 - Al Meera Consumer Goods Co 15.54 -0.38 220,334 660.00 0.10 First Dubai Real Estate Deve 36.00 5.57 3,640,436 Umm Al Qaiwain General Inves 0.00 - Dhofar Tourism 0.00 - Medicare Group 8.50 0.00 118,193 66.70 0.49 Al Arabi Group Holding Co 265.00 3.11 435,681 Aayan Leasing & Investment 3.60 9,420,320 Dhofar Poultry 0.00 - Mannai Corporation Qsc 3.18 -0.63 32,882 46.00 0.18 Kuwait Hotels Sak 100.00 0.00 - Alrai Media Group Co Ksc 0.00 1,094 Dhofar Intl Development 0.00 - Masraf Al Rayan 4.11 -0.72 6,540,828 37.50 0.30 Mobile Telecommunications Co 599.00 1.87 7,789,828 National Investments Co 2.19 2,448,607 Dhofar Insurance 0.00 - Al Khalij Commercial Bank 1.39 0.00 1,582,265 140.00 0.18 Eff ect Real Estate Co 20.50 0.00 - Commercial Facilities Co -2.67 205,560 Dhofar Generating Co Saoc 0.00 - Industries Qatar 10.48 0.77 1,055,942 219.00 0.21 Tamdeen Real Estate Co Ksc 304.00 1.00 228,490 Yiaco Medical Co. K.S.C.C 0.00 - Dhofar Fisheries & Food Indu 0.00 - Islamic Holding Group 1.87 0.00 425,187 66.50 1.28 Al Mudon Intl Real Estate Co 23.50 0.00 394,513 Dulaqan Real Estate Co 0.00 - Dhofar Cattlefeed 0.00 - Investment Holding Group 0.58 -2.54 12,596,115 350.00 0.17 Kuwait Cement Co Ksc 248.00 2.48 20,248 Real Estate Asset Management 0.00 - Dhofar Beverages Co 0.00 - Gulf Warehousing Company 5.32 -2.39 510,441 87.90 0.26 Sharjah Cement & Indus Devel 42.20 0.00 - Construction Materials Ind 0.00 - Gulf International Services 1.67 -0.60 1,800,756 0.04 Kuwait Portland Cement Co 980.00 0.72 1,002 Computer Stationery Inds 0.00 - Ezdan Holding Group 0.62 0.16 4,008,561 0.26 Educational Holding Group 430.00 0.00 231,038 Bankmuscat Saog 0.00 - Doha Insurance Co 1.17 1.74 13,470 0.43 Bahrain Kuwait Insurance 200.00 0.00 - Bank Nizwa 0.00 - Doha Bank Qpsc 2.94 -1.34 5,211,787 0.09 Asiya Capital Investments Co 39.70 7.01 14,200 OMAN Bank Dhofar Saog 0.00 - Dlala Holding 0.58 -0.52 394,668 0.12 Kuwait Investment Co 154.00 4.05 1,542,800 Arabia Falcon Insurance Co 0.00 - Commercial Bank Psqc 4.99 0.40 3,452,595 Company Name Lt Price % Chg Volume 0.10 Burgan Bank 307.00 2.68 4,479,601 Aloula Co 0.00 - Barwa Real Estate Co 3.54 -0.28 1,588,164 0.04 Kuwait Projects Co Holdings 216.00 1.41 915,171 Al-Omaniya Financial Service 0.10 0.00 - Al Khaleej Takaful Group 1.98 2.06 753,746 Voltamp Energy Saog 0.14 0.00 - Al Madina For Finance And In 15.10 3.42 3,040,100 Al-Hassan Engineering Co 0.03 0.00 - Al Ahli Bank 0.82 0.37 1,064,660 Vision Insurance Saoc 0.11 0.00 - Kuwait Insurance Co 349.00 0.00 - Al-Fajar Al-Alamia Co 0.75 0.00 - United Power/Energy Co- Pref 1.00 0.00 - Al Masaken Intl Real Estate 44.00 0.00 - Al-Anwar Ceramic Tiles Co 0.14 0.00 - United Power Co Saog 2.40 0.00 - Intl Financial Advisors 53.00 1.15 369,736 Al Suwadi Power 0.06 0.00 - United Finance Co 0.07 0.00 - KUWAIT First Investment Co Kscc 34.50 4.55 13,852,597 Al Sharqiya Invest Holding 0.09 0.00 - Ubar Hotels & Resorts 0.13 0.00 - Al Mal Investment Company 10.00 0.00 2,258,010 Al Maha Petroleum Products M 0.72 0.00 - Takaful Oman 0.13 0.00 - Company Name Lt Price % Chg Volume Bayan Investment Co Kscc 38.90 9.89 116,500 Al Maha Ceramics Co Saoc 0.20 0.00 - Taageer Finance 0.10 0.00 - Egypt Kuwait Holding Co Sae 405.00 0.00 - Al Madina Takaful Co Saoc 0.08 0.00 - Sultan Center Food Products 53.00 2.91 34,025 Sweets Of Oman 0.55 0.00 - Coast Investment Development 38.70 0.00 2,402,767 Al Madina Investment Co 0.03 0.00 - Kuwait Foundry Co Sak 337.00 0.30 2,000 Sohar Power Co 0.06 -4.92 - Privatization Holding Compan 49.00 1.24 398,644 Al Kamil Power Co 0.30 0.00 - Kuwait Financial Centre Sak 102.00 -0.97 971,095 Sohar International Bank 0.11 0.00 - Injazzat Real State Company 80.00 0.00 - Al Jazerah Services -Pfd 0.55 0.00 - Ajial Real Estate Entmt 179.00 0.00 4,000 Smn Power Holding Saog 0.07 0.00 - Kuwait Cable Vision Sak 14.00 0.00 - Al Jazeera Steel Products Co 0.13 0.00 - Kuwait Finance & Investment 50.40 0.80 360,859 Shell Oman Marketing - Pref 1.05 0.00 - Sanam Real Estate Co Kscc 40.00 0.00 - Al Jazeera Services 0.16 0.00 - National Industries Co Ksc 160.00 0.00 - Shell Oman Marketing 1.19 0.00 - Ithmaar Holding Bsc 22.30 0.00 - Al Izz Islamic Bank 0.06 0.00 - Kuwait Real Estate Holding C 26.10 -9.69 16,500 Sharqiyah Desalination Co Sa 0.26 0.00 - Aviation Lease And Finance C 260.00 -2.26 1,304,687 Al Buraimi Hotel 0.88 0.00 - Securities House/The 45.90 -0.65 51,928 Sembcorp Salalah Power & Wat 0.14 0.00 - Arzan Financial Group For Fi 23.50 0.86 3,825,328 Al Batinah Power 0.06 0.00 - Boubyan Petrochemicals Co 677.00 1.04 574,346 Salalah Port Services 0.60 0.00 - Ajwan Gulf Real Estate Co 14.70 -1.34 1,857,137 Al Batinah Hotels 1.13 0.00 - Al Ahli Bank Of Kuwait 260.00 2.36 966,421 Salalah Mills Co 0.50 0.00 - Kuwait Business Town Real Es 44.00 3.29 682,560 Al Batinah Dev & Inv 0.07 0.00 - Ahli United Bank (Almutahed) 338.00 1.50 717,200 Salalah Beach Resort Saog 1.38 0.00 - Future Kid Entertainment And 100.00 0.00 - Al Anwar Holdings Saog 0.08 0.00 - National Bank Of Kuwait 1,088.00 2.16 13,085,848 Sahara Hospitality 3.43 0.00 - Specialities Group Holding C 81.00 1.50 954,643 Al Ahlia Insurance Co Saoc 0.40 0.00 - Commercial Bank Of Kuwait 548.00 0.55 4,066 Renaissance Services Saog 0.32 -35.43 - Abyaar Real Eastate Developm 7.60 2.70 5,620,130 Ahli Bank 0.13 0.00 - Kuwait International Bank 277.00 1.47 11,919,027 Raysut Cement Co 0.45 0.00 - Dar Al Thuraya Real Estate C 79.00 1.28 16,000 Acwa Power Barka Saog 0.66 0.00 - Gulf Bank 314.00 2.95 14,257,123 Phoenix Power Co Saoc 0.07 0.00 - Kgl Logistics Company Kscc 36.20 2.55 1,021,490 Abrasives Manufacturing Co S 0.05 0.00 - Al-Massaleh Real Estate Co 36.50 0.00 - Packaging Co Ltd 2.21 0.00 - Combined Group Contracting 261.00 1.16 1,276,430 A’saff a Foods Saog 0.60 0.00 - Al Arabiya Real Estate Co 29.20 2.82 1,188,547 Ooredoo 0.51 0.00 - Jiyad Holding Co Ksc 43.00 7.50 1,055,107 0Man Oil Marketing Co-Pref 0.25 0.00 - Kuwait Remal Real Estate Co 23.50 2.62 125,999 Ominvest 0.33 0.00 - Warba Capital Holding Co 60.30 -4.29 297,440 #N/A Invalid Security 0.00 0.00 - Alkout Industrial Projects C 850.00 0.00 - Oman United Insurance Co 0.33 0.00 - Gulf Investment House Ksc 59.40 -0.83 161,699 #N/A Invalid Security 0.00 0.00 - Oman Telecommunications Co 0.60 0.00 - A’ayan Real Estate Co Sak 72.50 3.57 221,200 Boubyan Bank K.S.C 661.00 1.54 1,572,416 Oman Refreshment Co 1.20 0.00 - Investors Holding Group Co.K 8.00 2.56 2,377,585 Ahli United Bank B.S.C 329.00 3.13 16,448,647 Oman Qatar Insurance Co 0.09 0.00 - Al-Mazaya Holding Co 60.00 3.09 1,495,858 Osos Holding Group Co 111.00 7.77 5,030 LATEST MARKET CLOSING FIGURES

Pakistan market regulator invites Tencent’s $107bn rally surprises even feedback on new brokers’ regime bullish analysts

Internews Bloomberg the rally to take profi t. The Islamabad Hong Kong stock is trading near the most overbought level since late 2017. espite reservations by small and encent Holdings “The stock is rising partly medium brokers, the Securities and Ltd’s analysts, who due to a better earnings out- DExchange Commission of Pakistan Thave a history of be- look,” said Kevin Tam, ana- (SECP) has introduced new brokers regime. ing too bullish, have now lyst at Core Pacifi c-Yamaichi Under the proposed setup, brokers have been caught off guard by a International. “Its gaming been divided in three categories, starting recent rally in Asia’s biggest product PUBG Mobile has with Trading only for those with minimum stock. done very well recently and net worth of Rs15mn. Shares of the Chinese In- there are some good signs for Category II is for brokers with Trading ternet giant are closing in its new businesses.” and Self Clearing rights with minimum on analysts’ consensus tar- According to research- net worth of Rs100mn, while the Cat- get price, something which er Sensor Tower, revenue egory III brokers have the right for Trad- hasn’t happened in nearly from PUBG Mobile was the ing and Clearing with minimum net worth two years. It’s the most- world’s highest in Decem- Rs500mn. loved stock in Hong Kong, ber. The game garnered the The regulator has fl oated the draft as none of the 57 analyst second-most downloads amendment in the Securities Brokers (Li- ratings tracked by Bloomb- globally last year. Tencent’s censing and Operations) Regulations, 2016 erg recommend selling the Call of Duty: Mobile made for public comments and feedback. shares. Of the 50 bullish an- it into the top 10 for 2019, Under the amendment, the Trading Only alysts, more than one-third despite only being released brokers can only execute its proprietary have a 12-month price target in October. trades and trades on behalf of its clients but that lags its current price. Last week, Tencent an- cannot settle executed trades or keep cus- Tencent has jumped 27% nounced new initiatives to tody of securities or money owned by it and since an October low, add- further monetise its social- its customers. ing $107bn to sharehold- networking application We- The Category II brokers can execute as er value. The share price chat, including the launch well as settle its proprietary trades and topped HK$405 on Mon- of more customised tools trades executed on behalf their clients and day for the fi rst time since for users on the platform, can keep custody of securities and money Stockbrokers monitor share prices at the Pakistan Stock Exchange in Karachi. Despite reservations by small and medium brokers, the 2018, the price at which its according to CICC. “We ex- owned by it and its customers subject to Securities and Exchange Commission of Pakistan has introduced new brokers regime. Under the proposed setup, brokers have been biggest shareholder sold pect short-term sentiment such conditions as may be imposed by the divided in three categories, starting with Trading only for those with minimum net worth of Rs15mn. Category II is for brokers with about $10bn worth of shares to rise on new initiatives but SECP. Trading and Self Clearing rights with minimum net worth of Rs100mn, while the Category III brokers have the right for Trading and early that year. It was Hong believe the actual impact While, brokers falling under the Catego- Clearing with minimum net worth Rs500mn. Kong’s biggest-ever sec- will be limited,” analyst Na- ry III can execute as well as settle its propri- ondary off ering at the time. talie Yue wrote in a note. etary trades and trades executed on behalf is Trading and Self-Clearing will have to Small brokers, while opposing the as a conspiracy to hand over the stock mar- Tencent rose as much as These good signs came of their clients and can keep custody of se- apply for conversion to Trading Only (Cat- amendment on the grounds that it will ket in the hands of large brokers. 1.6% yesterday to HK$413 after a bearish quarter. The curities and cash owned by it and its clients. egory I) by April 15, 2020. result in concentrating the market in the The PBA pointed out that there should before turning lower with company’s profi t plummet- The amendment also allows the Category The regulator has allowed all conver- hands of large brokers, have announced to be separate clearing and settlement agents the broader market. Shares ed 13% in the third quarter, III brokers to settle trades of other securi- sions and settlements in this regard by July oppose the move using all options includ- including banks and it should not be in the fell 1.5% to close just above missing the most-pessimis- ties brokers, their clients and keep custody 1, 2020, mainly related to compliance with ing registering the complaint against the hands of large players of the same trade. HK$400. A series of block tic analyst forecast, when securities and cash owned by other brokers minimum net worth and net capital balance regulator to the ministry of fi nance, prime The association said that it has been trades totalling almost 1mn an economic downturn and their clients. for each category. minister and in the court of law. proposed that Category I brokers will be shares crossed yesterday depressed advertising and Under the new regime, a securities bro- The minimum net worth requirement for The PSX Stock Brokers Association (PBA) dependent on Category III brokers for morning at around HK$402, prompted charges within ker, which does not comply with fi nancial Trading and Self Clearing (Category II) will has already written a letter to the SECP clearing rights of all settlements and even suggesting some sharehold- its huge portfolio of invest- resource requirements for Category II that be increased to Rs125mn from July 1, 2021. against proposed amendment describing it maintain custody of their shares. ers are making the most of ments. Gulf Times 10 Wednesday, January 15, 2020 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 28,956.51 +49.46 Apple Inc 316.73 -0.07 3,139,997 S&P 500 Index 3,285.93 -2.20 American Express Co 128.89 0.27 213,471 Nasdaq Composite Index 9,251.37 -22.56 Boeing Co/The 331.55 0.40 315,722 S&P/Tsx Composite Index 17,309.51 +16.09 Caterpillar Inc 147.32 0.34 161,598 Mexico Bolsa Index 44,527.48 -319.99 Cisco Systems Inc 47.73 -0.50 879,310 Brazil Bovespa Stock Idx 117,178.30 -147.00 Chevron Corp 116.12 -0.46 320,821 Ftse 100 Index 7,627.46 +9.86 Walt Disney Co/The 142.40 -1.03 559,900 Cac 40 Index 6,039.38 +3.24 Dow Inc 52.29 -0.11 166,745 Dax Index 13,454.64 +3.12 Goldman Sachs Group Inc 246.26 0.43 248,752 Ibex 35 Tr 9,522.60 -21.30 Home Depot Inc 224.32 0.44 180,809 Nikkei 225 24,025.17 +174.60 Intl Business Machines Corp 136.64 0.03 187,899 Japan Topix 1,740.53 +5.37 Intel Corp 59.37 -0.37 1,174,890 Hang Seng Index 28,885.14 -69.80 Johnson & Johnson 145.01 -0.47 251,002 All Ordinaries Indx 7,078.00 +57.84 Jpmorgan Chase & Co 140.03 2.06 1,427,263 Nzx All Index 1,944.92 +12.97 Coca-Cola Co/The 55.99 -0.25 727,030 Bse Sensex 30 Index 41,952.63 +92.94 Mcdonald’s Corp 206.86 0.17 159,350 Nse S&P Cnx Nifty Index 12,362.30 +32.75 3M Co 181.54 0.34 150,907 Straits Times Index 3,270.54 +19.47 Merck & Co. Inc. 89.34 -0.19 334,535 Karachi All Share Index 29,973.44 -47.54 Microsoft Corp 163.40 0.07 1,711,355 Jakarta Composite Index 6,325.41 +28.84 Nike Inc -Cl B 103.14 0.96 263,875 Pfizer Inc 39.67 0.66 898,725 Procter & Gamble Co/The 125.06 0.14 414,811 Travelers Cos Inc/The 137.26 0.73 69,197 TOKYO Unitedhealth Group Inc 287.65 0.63 333,195 United Technologies Corp 151.50 -0.36 151,386 Company Name Lt Price % Chg Volume Visa Inc-Class A Shares 195.84 0.26 518,280 Nidec Corp 15,540.00 0.75 1,216,000 Verizon Communications Inc 58.91 -0.41 410,352 Isuzu Motors Ltd 1,243.00 1.14 2,236,700 Walgreens Boots Alliance Inc 54.40 0.63 326,967 Unicharm Corp 3,839.00 2.26 1,369,200 Walmart Inc 116.04 0.14 306,112 Nomura Holdings Inc 580.70 0.36 17,063,900 Exxon Mobil Corp 69.17 -0.90 730,232 Daiichi Sankyo Co Ltd 7,200.00 0.33 1,196,900 Subaru Corp 2,677.00 -0.41 2,841,000 Sumitomo Realty & Developmen 3,830.00 -0.10 1,101,500 FTSE 100 Ntt Docomo Inc 3,110.00 1.17 4,141,800 Sumitomo Metal Mining Co Ltd 3,563.00 1.74 1,312,500 Company Name Lt Price % Chg Volume Orix Corp 1,853.00 -0.30 5,754,300 Asahi Group Holdings Ltd 4,973.00 0.38 950,500 Anglo American Plc 2,172.50 -0.59 1,281,731 Keyence Corp 40,470.00 1.73 579,900 Associated British Foods Plc 2,564.00 -0.43 256,841 Mizuho Financial Group Inc 166.60 -0.36 75,145,300 Admiral Group Plc 2,309.00 0.13 188,690 Sumitomo Mitsui Trust Holdin 4,219.00 -1.36 1,159,100 Ashtead Group Plc 2,460.00 -0.36 841,780 Japan Tobacco Inc 2,429.00 0.56 4,529,800 Antofagasta Plc 977.00 0.64 1,311,901 Sumitomo Electric Industries 1,637.00 -0.06 2,252,500 Auto Trader Group Plc 576.80 0.31 1,103,954 Daiwa Securities Group Inc 577.70 1.30 3,893,400 Aviva Plc 411.40 -0.05 4,302,545 Softbank Group Corp 5,049.00 3.51 22,720,900 Astrazeneca Plc 7,682.00 0.42 454,729 Panasonic Corp 1,058.50 1.68 7,059,400 Bae Systems Plc 611.20 -0.46 2,438,536 Fujitsu Ltd 11,245.00 1.08 735,000 Barclays Plc 181.32 -0.20 15,136,678 A view of the trading room at the Frankfurt Stock Exchange. Germany’s DAX index closed flat yesterday. Central Japan Railway Co 21,945.00 0.11 230,800 British American Tobacco Plc 3,487.00 -0.23 2,365,874 Nitori Holdings Co Ltd 17,320.00 -0.46 252,200 Barratt Developments Plc 780.80 1.61 2,353,172 Ajinomoto Co Inc 1,820.50 0.05 1,070,000 Bhp Group Plc 1,810.40 0.32 2,143,159 Daikin Industries Ltd 15,580.00 0.48 761,000 Berkeley Group Holdings/The 4,882.00 0.70 174,901 Mitsui Fudosan Co Ltd 2,767.00 0.91 2,491,000 British Land Co Plc 583.40 -0.68 1,199,161 Ono Pharmaceutical Co Ltd 2,599.50 0.52 1,439,300 Bunzl Plc 2,084.00 0.14 511,000 Toray Industries Inc 748.20 1.44 5,803,600 Bp Plc 496.10 -0.20 16,682,497 Bridgestone Corp 3,990.00 -0.42 2,973,900 LVMH rally boosts Burberry Group Plc 2,273.00 1.38 533,965 Sony Corp 8,036.00 2.46 13,303,600 Bt Group Plc 186.18 -1.70 8,483,490 Astellas Pharma Inc 1,895.50 0.82 4,352,400 Coca-Cola Hbc Ag-Di 2,712.00 1.19 333,235 Hoya Corp 10,730.00 0.75 818,500 Carnival Plc 3,590.00 0.79 267,504 Nippon Steel Corp 1,680.50 2.28 4,615,300 Centrica Plc 90.32 3.13 8,526,737 Suzuki Motor Corp 4,637.00 1.29 1,786,300 Compass Group Plc 1,956.00 1.35 1,075,474 Europe shares ahead Nippon Telegraph & Telephone 2,792.00 0.13 3,755,000 Croda International Plc 5,195.00 1.56 240,308 Jxtg Holdings Inc 492.90 -1.97 20,245,500 Crh Plc 3,025.00 -0.43 1,008,296 Murata Manufacturing Co Ltd 6,870.00 -0.20 3,761,300 Dcc Plc 6,574.00 0.46 98,051 Kansai Electric Power Co Inc 1,229.50 -0.36 2,760,100 Diageo Plc 3,234.50 0.06 2,279,438 Denso Corp 4,885.00 0.72 1,344,500 Direct Line Insurance Group 329.10 0.12 1,574,216 Sompo Holdings Inc 4,213.00 -0.61 1,336,100 Evraz Plc 398.10 -3.49 1,057,638 of US-China trade deal Daiwa House Industry Co Ltd 3,446.00 1.35 1,816,500 Experian Plc 2,602.00 1.40 505,366 Dai-Ichi Life Holdings Inc 1,747.00 -0.82 4,147,700 Easyjet Plc 1,505.00 0.87 1,313,010 Mazda Motor Corp 959.00 0.42 3,579,700 ment being at record levels and con- at one point, the lowest level since July. Ferguson Plc 7,234.00 0.95 150,005 Reuters, AFP Komatsu Ltd 2,642.00 0.99 2,931,200 tinued M&A speculation. “The yuan is the purest and best Fresnillo Plc 601.00 -2.91 788,624 London West Japan Railway Co 9,455.00 0.04 598,600 Glencore Plc 243.55 0.52 11,687,019 LVMH rose 1% to touch record highs. barometer to gauge the market’s view Kao Corp 9,131.00 -0.58 955,700 Glaxosmithkline Plc 1,801.60 -0.42 2,063,168 Homebuilder Taylor Wimpey rose on US-China trade tension,” said Axi- Mitsui & Co Ltd 1,972.50 0.05 3,646,400 Gvc Holdings Plc 921.60 -0.11 1,589,564 record high for Louis Vuit- 3.9% after it reported a 22% jump in its Trader’s Stephen Innes. Daito Trust Construct Co Ltd 13,020.00 0.15 392,900 Hikma Pharmaceuticals Plc 1,940.00 0.62 224,897 Otsuka Holdings Co Ltd 4,948.00 -0.92 759,700 ton owner LVMH and a rally in order book in 2019 and struck a posi- “With the yuan strengthening ahead Hargreaves Lansdown Plc 1,809.50 -1.12 516,624 Oriental Land Co Ltd 16,010.00 0.60 463,800 homebuilder Taylor Wimpey tive tone about 2020. of the ‘phase one’ deal signing, it’s in- Halma Plc 2,104.00 -0.52 504,264 A Sekisui House Ltd 2,391.50 0.74 3,312,600 helped to push European shares high- Germany’s DAX index closed fl at as dicating the potential for further im- Hsbc Holdings Plc 591.30 0.08 7,325,301 Secom Co Ltd 9,734.00 -0.65 395,300 Hiscox Ltd 1,342.00 0.22 416,778 er yesterday, with investors looking a 4.7% jump in payment’s company provement in trade relations.” Tokio Marine Holdings Inc 6,147.00 1.74 1,596,600 Intl Consolidated Airline-Di 647.00 -1.34 2,871,545 ahead to the signing of an initial US- Wirecard off set losses in healthcare The US reversal of China’s status as a Aeon Co Ltd 2,339.00 2.59 3,417,700 Intercontinental Hotels Grou 5,036.00 -0.30 112,734 China trade deal. group Fresenius, which fell after the manipulator “is a most precise and de- Asahi Kasei Corp 1,200.50 0.50 2,730,700 3I Group Plc 1,103.50 0.00 939,399 While most major country indices company said it expected limited profi t fi nitive de-escalation of trade tension to Kirin Holdings Co Ltd 2,446.50 2.71 3,856,300 Imperial Brands Plc 1,990.80 0.93 1,134,619 Marubeni Corp 821.80 0.10 4,456,400 traded fl at to lower, the pan-European growth in 2020. date and provides a less congested road Informa Plc 842.20 -0.14 1,735,438 Mitsubishi Ufj Financial Gro 579.00 0.14 37,523,200 STOXX 600 index closed up 0.3% after Oil stocks were the biggest decliners as we pivot to phase two of the broader Intertek Group Plc 5,870.00 0.38 96,635 Mitsubishi Chemical Holdings 817.50 0.78 4,396,800 two sessions of losses. among the main sectors in Europe. trade agreement”, Innes added. Itv Plc 145.50 -1.49 7,039,161 Fanuc Corp 20,915.00 1.19 1,055,000 Johnson Matthey Plc 2,938.00 -1.51 390,835 The index had hit a record high last A 5% slump in Tullow Oil after a rat- Data yesterday showed China’s trade Fast Retailing Co Ltd 63,340.00 2.18 971,000 Kingfisher Plc 217.50 1.64 1,739,593 week on de-escalation in US-Iran ten- ings downgrade led losses, while BP surplus with the US narrowed 8.5% in Ms&Ad Insurance Group Holdin 3,670.00 0.00 1,011,600 Land Securities Group Plc 960.60 0.78 870,293 sions and hopes of a Phase 1 US-China slipped after Berenberg said increased 2019, which will likely play well in the Kubota Corp 1,722.00 0.94 2,751,800 Legal & General Group Plc 302.30 0.03 4,217,341 White House, where the huge disparity Seven & I Holdings Co Ltd 4,285.00 2.73 2,614,100 trade deal. shareholder payouts will likely have to Lloyds Banking Group Plc 58.75 0.02 149,551,617 Inpex Corp 1,155.00 -1.28 6,411,000 The deal, due to be signed in Wash- wait until the second half of the year. is a key bone of contention and a major London Stock Exchange Group 7,596.00 0.40 169,398 Resona Holdings Inc 468.30 -0.80 7,720,500 ington on Wednesday, marks the fi rst France’s Total fell after the energy catalyst of the trade war. Micro Focus International 1,114.80 2.52 560,320 Fujifilm Holdings Corp 5,792.00 -0.87 2,310,100 Tokyo’s main stocks index was Marks & Spencer Group Plc 184.35 -2.72 4,141,666 step in winding down the damaging company said it would move its fi nance Yamato Holdings Co Ltd 1,861.00 -1.17 1,191,500 Mondi Plc 1,628.50 -2.66 1,824,310 trade war that has troubled markets for department back to Paris from London among the biggest gainers, rising 0.7% Chubu Electric Power Co Inc 1,449.00 -1.63 3,746,000 Melrose Industries Plc 236.50 0.08 5,400,446 18 months. due to Britain’s impending exit from as the dollar advanced against the yen Mitsubishi Estate Co Ltd 2,097.50 0.79 3,371,700 Wm Morrison Supermarkets 191.70 1.46 3,722,441 “We are still waiting for details on the European Union, and to reduce owing to a rush out of safety — giving a Mitsubishi Heavy Industries 4,300.00 -0.09 948,900 National Grid Plc 943.40 0.22 1,612,768 Sysmex Corp 7,700.00 0.57 485,300 the trade deal... the sustainability costs. boost to Japan’s exporters. Nmc Health Plc 1,385.00 10.23 1,267,562 Shiseido Co Ltd 7,963.00 0.10 1,703,200 and the eff ectiveness of it is going to Italian tyre-maker Pirelli slid to the However, profi t-taking saw Hong Next Plc 6,828.00 1.49 146,061 Shionogi & Co Ltd 6,928.00 -0.01 941,100 be judged by the details, and there is bottom of the auto index after UBS Kong drop 0.2% and Shanghai slip Ocado Group Plc 1,296.50 1.29 371,191 Terumo Corp 3,932.00 0.23 1,900,000 Paddy Power Betfair Plc 0.00 0.00 - probably an element to the market of cut its recommendation to “neutral” 0.3% following recent advances. Tokyo Gas Co Ltd 2,582.00 -1.94 1,328,700 Prudential Plc 1,463.00 -0.58 2,027,008 just waiting to fi nd that out,” said Craig on lower price-mix contribution and European stock markets were down Tokyo Electron Ltd 25,300.00 1.85 1,273,900 Persimmon Plc 2,793.00 2.12 670,980 Erlam, market analyst at Oanda, Lon- weaker volume growth. at the half-way mark. East Japan Railway Co 9,958.00 0.70 873,000 Pearson Plc 603.00 -3.61 1,580,446 don. US President Donald Trump had in Improving confi dence also hit gold, Itochu Corp 2,580.50 0.23 3,822,500 Reckitt Benckiser Group Plc 6,168.00 1.31 485,185 Ana Holdings Inc 3,590.00 0.06 584,300 Andrea Cicione, head of macro August accused Beijing of weakening which is a popular go-to asset in times Royal Bank Of Scotland Group 230.80 -0.52 9,195,504 Mitsubishi Electric Corp 1,532.50 0.89 3,890,900 strategy at TS Lombard, suggested any its yuan currency “to steal our busi- of turmoil. Royal Dutch Shell Plc-A Shs 2,255.00 -0.57 2,673,999 Sumitomo Mitsui Financial Gr 3,998.00 -0.65 4,150,400 indication of a time frame and possible ness and factories”, re-stating a long- The yellow metal last week broke Royal Dutch Shell Plc-B Shs 2,269.00 -0.48 3,006,907 Relx Plc 1,975.50 1.49 2,429,156 agreements that would entail Phase 2 standing grievance. $1,600 per ounce for the fi rst time in Rio Tinto Plc 4,556.50 0.03 738,212 negotiations would be the most im- But soon after the end of trade on seven years on the Iran crisis but the Rightmove Plc 655.00 1.42 1,014,515 SENSEX portant takeaway. Monday, the Treasury said in its semi- lowering of expectations for a confl ict Rolls-Royce Holdings Plc 677.00 0.21 1,358,384 Luxury stocks were boosted when annual report to Congress that the unit with the US has seen it tumble. Rsa Insurance Group Plc 563.60 -0.28 494,584 Company Name Lt Price % Chg Volume UBS analysts said they were expecting had strengthened and Beijing was no The improving China-US outlook Rentokil Initial Plc 457.40 1.26 1,234,757 Adani Ports And Special Econ 389.20 -0.29 1,963,128 2020 to be another busy year for the longer keeping it artifi cially weak. heaped further pressure on gold, which Sainsbury (J) Plc 220.40 -0.05 1,303,781 Asian Paints Ltd 1,819.15 0.79 775,629 dropped to $1,545.19 yesterday. Schroders Plc 3,268.00 0.25 45,446 sector, supported by consumer senti- The dollar slumped to 6.8670 yuan Axis Bank Ltd 747.90 1.42 7,237,665 Sage Group Plc/The 734.20 -0.22 775,224 Bajaj Finance Ltd 4,193.00 0.68 703,434 Segro Plc 874.60 0.11 546,562 Bharti Airtel Ltd 469.35 0.10 8,086,659 Smurfit Kappa Group Plc 2,846.00 -0.97 152,925 Bharti Infratel Ltd 247.90 0.59 2,707,073 HONG KONG HONG KONG Standard Life Aberdeen Plc 312.70 0.22 2,020,035 Bajaj Auto Ltd 3,101.60 0.24 278,534 Ds Smith Plc 367.70 -2.13 3,105,307 Bajaj Finserv Ltd 9,554.85 1.05 162,899 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Smiths Group Plc 1,736.00 -0.63 415,369 Bharat Petroleum Corp Ltd 473.35 0.55 3,608,358 Scottish Mortgage Inv Tr Plc 601.50 0.00 2,139,837 Ck Hutchison Holdings Ltd 0.27 Cipla Ltd 484.25 1.38 2,160,301 75.10 6,117,313 Hong Kong & China Gas 15.52 0.39 14,523,395 Smith & Nephew Plc 1,872.00 0.16 904,686 Hang Lung Properties Ltd 0.86 Coal India Ltd 212.95 0.66 5,417,581 18.70 4,438,715 Bank Of Communications Co-H 5.48 -0.72 13,497,287 Spirax-Sarco Engineering Plc 9,030.00 0.17 45,343 Ck Infrastructure Holdings L 0.43 Dr. Reddy’s Laboratories 2,947.80 -0.23 357,170 57.85 2,754,806 China Petroleum & Chemical-H 4.69 -1.05 115,441,051 Sse Plc 1,460.50 1.11 1,017,267 Hengan Intl Group Co Ltd 0.08 Eicher Motors Ltd 20,489.70 1.03 116,226 61.90 2,970,700 Hong Kong Exchanges & Clear 277.60 -0.93 4,719,690 Standard Chartered Plc 716.80 0.39 1,348,212 China Shenhua Energy Co-H -0.50 Gail India Ltd 130.05 0.89 19,261,286 15.90 17,342,228 Bank Of China Ltd-H 3.32 -0.30 257,163,407 St James’s Place Plc 1,113.00 -0.63 575,778 Cspc Pharmaceutical Group Lt -1.33 Grasim Industries Ltd 759.90 0.04 1,186,220 17.76 24,625,788 Hsbc Holdings Plc 59.75 -0.33 19,350,077 Severn Trent Plc 2,533.00 0.60 140,371 Hang Seng Bank Ltd 0.48 Hcl Technologies Ltd 594.30 1.33 3,395,378 167.30 1,964,056 Power Assets Holdings Ltd 58.50 0.17 2,350,915 Tesco Plc 249.90 0.52 5,939,316 China Resources Land Ltd -1.35 Housing Development Finance 2,492.30 1.21 2,549,328 36.45 18,131,577 Mtr Corp 47.45 0.74 4,230,673 Tui Ag-Di 919.60 -0.04 893,684 Ck Asset Holdings Ltd -0.79 Hdfc Bank Limited 1,289.50 0.27 3,943,145 56.25 7,450,736 China Overseas Land & Invest 29.60 -0.17 10,253,626 Taylor Wimpey Plc 209.10 3.51 11,972,633 Sino Biopharmaceutical -1.26 Hero Motocorp Ltd 2,411.40 1.89 787,340 10.94 30,954,215 Tencent Holdings Ltd 400.40 -1.48 26,827,634 Unilever Plc 4,324.50 -0.43 1,054,486 Henderson Land Development 0.26 Hindalco Industries Ltd 211.95 0.36 7,981,507 38.50 3,907,240 China Unicom Hong Kong Ltd 7.21 1.26 31,507,662 United Utilities Group Plc 978.00 0.72 487,012 Aia Group Ltd 0.75 Hindustan Petroleum Corp 254.50 0.85 2,853,077 87.30 23,831,341 Link Reit 83.25 0.48 6,314,285 Vodafone Group Plc 156.16 2.99 32,913,827 Ind & Comm Bk Of China-H -1.01 Hindustan Unilever Ltd 2,008.80 0.70 1,610,737 5.91 206,577,219 Sino Land Co 11.54 0.35 6,042,453 John Wood Group Plc 379.50 -1.86 842,696 Want Want China Holdings Ltd 0.29 Icici Bank Ltd 537.60 -0.19 13,939,440 7.03 10,385,600 China Resources Power Holdin 11.20 2.56 12,566,254 Wpp Plc 1,038.50 -2.26 2,537,985 Sun Hung Kai Properties -0.08 Indiabulls Housing Finance L 307.35 -1.96 16,269,491 121.20 4,354,478 Petrochina Co Ltd-H 3.95 -1.00 105,100,743 Whitbread Plc 4,773.00 1.34 235,654 New World Development 0.55 Indusind Bank Ltd 1,481.65 -3.77 15,123,110 11.00 18,778,298 Cnooc Ltd 13.54 -1.46 81,058,672 Geely Automobile Holdings Lt -1.84 Infosys Ltd 775.65 0.27 11,414,418 16.04 38,215,775 China Construction Bank-H 6.75 -0.74 251,178,559 Swire Pacific Ltd - Cl A 0.40 Indian Oil Corp Ltd 126.90 -0.04 4,488,135 75.05 2,136,794 China Mobile Ltd 66.10 1.07 17,786,085 Sands China Ltd 3.14 Itc Ltd 243.25 1.67 11,843,444 44.30 20,311,269 TOKYO Wharf Real Estate Investment 0.43 Jsw Steel Ltd 280.90 0.83 7,428,691 46.80 2,591,926 Clp Holdings Ltd 0.06 Kotak Mahindra Bank Ltd 1,676.80 -0.85 2,136,892 82.75 2,948,528 Country Garden Holdings Co -0.49 Company Name Lt Price % Chg Volume Larsen & Toubro Ltd 1,326.10 -0.64 2,046,500 12.20 20,405,404 Aac Technologies Holdings In -4.44 Mahindra & Mahindra Ltd 562.50 1.36 2,793,249 64.60 16,425,537 GCC INDICES Japan Airlines Co Ltd 3,445.00 0.38 1,400,900 Shenzhou International Group 1.77 Maruti Suzuki India Ltd 7,386.80 0.46 548,522 115.00 2,287,640 Indices Lt Price Change Recruit Holdings Co Ltd 4,214.00 -0.54 2,756,200 Ping An Insurance Group Co-H 0.94 Ntpc Ltd 123.50 1.44 8,631,692 96.50 38,684,955 Softbank Corp 1,485.50 0.58 7,061,900 China Mengniu Dairy Co 32.50 -0.31 6,988,089 Oil & Natural Gas Corp Ltd 125.05 -0.32 12,432,511 Doha Securities Market 10,636.70 +69.09 Kyocera Corp 7,721.00 0.76 786,700 Sunny Optical Tech -2.33 Power Grid Corp Of India Ltd 195.25 0.23 3,371,803 142.30 7,902,601 Nissan Motor Co Ltd 618.00 -2.97 22,549,700 Boc Hong Kong Holdings Ltd 28.10 0.00 19,555,420 Reliance Industries Ltd 1,529.40 -0.93 7,230,788 Kuwait Stocks Exchange 4,889.03 +43.40 T&D Holdings Inc 1,321.00 -0.38 1,878,400 China Life Insurance Co-H -1.54 State Bank Of India 328.00 -0.83 26,296,117 22.40 38,648,837 Toyota Motor Corp 7,700.00 0.51 4,862,400 Citic Ltd 10.18 0.59 8,366,000 Sun Pharmaceutical Indus 446.00 0.31 2,708,589 Oman Stock Market 3,977.16 +32.68 Kddi Corp 3,283.00 -0.15 4,701,600 Galaxy Entertainment Group L 2.29 Tata Steel Ltd 498.60 0.57 15,660,822 62.45 15,039,798 Nitto Denko Corp 6,220.00 0.81 495,900 Wh Group Ltd 8.68 -0.23 46,401,940 Hitachi Ltd 4,587.00 0.50 4,006,600 Tata Consultancy Svcs Ltd 2,206.90 0.76 2,948,452 Takeda Pharmaceutical Co Ltd 4,404.00 0.57 3,571,500 Tech Mahindra Ltd 796.25 1.32 1,628,535 Jfe Holdings Inc 1,485.00 4.06 4,445,200 Titan Co Ltd 1,167.10 0.70 1,324,743 Sumitomo Corp 1,623.50 0.59 4,745,800 Tata Motors Ltd 195.85 -0.20 29,867,542 Canon Inc 3,079.00 0.62 3,222,000 Upl Ltd 583.55 -1.42 2,911,749 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The Eisai Co Ltd 8,106.00 -1.95 999,100 Ultratech Cement Ltd 4,483.30 0.33 438,651 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Nintendo Co Ltd 43,200.00 -0.55 1,203,500 Vedanta Ltd 165.00 2.84 19,728,091 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Shin-Etsu Chemical Co Ltd 12,365.00 3.39 1,262,700 Wipro Ltd 257.20 0.94 7,296,777 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Mitsubishi Corp 2,907.00 0.35 3,242,400 Yes Bank Ltd 38.55 -8.43 314,975,429 this data.” Smc Corp 53,950.00 1.56 164,700 Zee Entertainment Enterprise 269.55 1.68 12,052,587 Gulf Times 14 Wednesday, January 15, 2020 BUSINESS Danske’s cost burden keeps growing in an age of bank scandals

Bloomberg Sea, beyond which lies the region that with any challenge. The bank can says Danske’s “strong” capital ratio Danske is just one of a number of Danske is trying to step up its presence Stockholm dragged Danske into its worst existential “manage whatever might happen,” she provides a capital buff er of about Nordic banks being investigated for in Sweden, where it’s faced tough crisis in living memory. said. “We are one of the best capitalized $3.3bn, compared with his estimate for potential money laundering. In Sweden, competition in the mortgage market. A month after Norberg took on the job banks in Northern Europe.” a total fine of no more than $2.5bn. Still, Swedbank AB and SEB AB — which The bank’s share of new business fell At Danske Bank, the cost of adapting to of Swedish CEO, Danske announced an Danske is being investigated in equity analysts at Citigroup recently dominate in the Baltic region — have in the third quarter, and it has now a world intensely focused on financial organization-wide hiring freeze to help Denmark, Estonia and France, as well advised clients to brace for a fine of also been tainted by scandals. decided to join a local price war by not crime just keeps growing. cope with growing compliance costs. as by the US Department of Justice about $3.2bn. Earlier this month, analysts at raising mortgage rates. In an interview in Stockholm, the That’s as the European Union makes and the US Securities and Exchange “I don’t feel worried,” Norberg said. JPMorgan Cazenove warned clients “One reason is of course that our brand chief executive of Danske in Sweden, ever greater demands forcing banks Commission. It also faces a number of The EU’s fifth anti-money laundering of the risk of “significant cost pressure got aff ected due to Estonia and the Johanna Norberg, said “the peak” level to take adequate steps to ensure they class-action lawsuits. rule (AMLD5) went live on Jan. 10, given ongoing scrutiny of systems and money laundering events,” Norberg of investment to meet anti-money don’t touch suspicious transactions. The bank’s market value has plunged “raising banks’ costs, as well as controls.” says. “It’s been a hard nut to crack. We laundering requirements has “not yet Since admitting it failed to properly by almost 40%, or over $9bn, since late compliance and franchise risk. Stricter Norberg says that at Danske, a lot of got hit pretty hard being the first bank been reached.” screen €200bn ($222bn) in non- September 2018, when it revealed the client checks will also see investment in the costs of protecting the bank from in the Nordics.” The 48-year-old has been running resident flows through Estonia, Danske scale of its Estonian scandal. The bank’s compliance staff and systems upgrades money laundering “are focused on Of her first few months as Swedish CEO, Danske’s operations in the biggest Nordic has become the target of multiple capital adequacy, however, remains mount, opening doors for regulatory- getting automated processes and a Norberg says, “It’s been a steep learning nation since September, after years spent criminal investigations. Investors are better than most. compliance software,” says Sarah Jane new platform in place.” She says that curve and great fun.” But she also overseeing the bank’s markets units. now bracing for hefty fines. Norberg Philip Richards, a senior banks analyst Mahmud, Senior Analyst at Bloomberg “once that’s done the investment levels acknowledges that “the honeymoon is Her headquarters overlook the Baltic says there’s plenty of capital to deal at Bloomberg Intelligence in London, Intelligence. will decrease.” over.”

Rotenberg loses sanctions Boris Johnson hints he won’t ban suit against Nordic banks

Huawei from UK’s 5G networks Reuters Helsinki

Bloomberg London Boris Rotenberg, a Russian businessman under US sanctions over the Ukraine conflict due to his close ties with President oris Johnson suggested his Vladimir Putin, has lost a discrimination government may be ready to lawsuit he filed in a Finnish court against Ballow Huawei Technologies Co four Nordic banks. to supply at least some equipment for “Helsinki District Court has rejected Boris its 5G broadband networks even in Rotenberg’s complaint over the right to the face of strong pressure for a ban banking services and damages for dis- from the US. crimination,” the court said in a statement “The British public deserve to have on Monday. access to the best possible technol- Rotenberg, who also holds Finnish citi- ogy,” Johnson said when asked about zenship, accused Nordea, Danske Bank, Huawei in a BBC TV interview yes- Handelsbanken and OP Bank of refusing terday. “We want to put in gigabit to allow him to make payments and of broadband for everybody. If people violating his right to equal treatment as an oppose one brand or another, then EU citizen. The court said Rotenberg had they have to tell us what’s the alter- failed to prove he was a person living in native.” the European Economic Area and there- The UK for months has been de- fore he was not entitled to basic banking bating how much, if any, access to services in Finland. grant Huawei to its broadband mar- It also ruled the banks’ concerns of signifi- ket in the future amid the suggestion cant financial risks related to Rotenberg’s the US may be more wary of sharing transactions were not unfounded. intelligence if it uses Chinese equip- The court ordered Rotenberg to pay the ment. Senior US offi cials visited Lon- banks’ legal expenses, amounting to don on Monday with a last-ditch plea around €530,000 ($589,360). Contacted that the UK should bar Huawei from by Reuters via his lawyer, Rotenberg was providing the kit, warning again that not immediately available for comment. intelligence-sharing could be at risk. The decision can be appealed. Supporters argue that the compa- Rotenberg is not subject to EU sanctions ny’s equipment can be used in non- over Russia’s role in Ukraine but European core areas in a way that keeps the banks must comply with the US sanctions networks secure. But the US warns in order to do business with US banks. that the eff ects of the leap to 5G tech- The United States and the EU imposed nology are so poorly understood that sanctions on Russia after it annexed Cri- the safest and best solution is to keep mea from Ukraine in 2014 and increased the Chinese company out altogether. them after Moscow backed rebels fighting The US delegation, led by Deputy government troops in eastern Ukraine. National Security Adviser Matthew Rotenberg and his brother Arkady are Pottinger and including offi cials from long-time friends of Putin and Washington the State Department, argued that considers both of them members of the there was no way the UK could mitigate president’s “inner circle”. In his lawsuit, the security risks from such a network, Engineers from EE, the wireless network provider owned by BT Group, inspect Huawei Technologies 5G equipment overlooking St Paul’s Cathedral during trials Rotenberg complained he has been unable according to a person familiar with the in the City of London on March 15, 2019. “We want to put in gigabit broadband for everybody. If people oppose one brand or another, then they have to tell us to fulfil his legal obligations in Finland after meeting. Johnson on Monday showed what’s the alternative,” Prime Minister Boris Johnson said when asked about Huawei in a BBC TV interview yesterday. the banks refused to transmit payments of he’s alive to the US concerns. his ordinary invoices, including a traff ic tax “Let’s be clear, I don’t want as UK into doubt Johnson’s pledge to deliver the Financial Times this month that as a result of concerns over foreign Huawei has become a lightning payment worth just €18.60. prime minister, to put in any infra- 5G to most of the country by 2027. he had “no reason” to believe intelli- involvement in critical national in- rod for tensions between the US and “A systematic choice was made in drafting structure that is going to prejudice UK newspapers reported on Mon- gence-sharing with the US would be frastructure, while others said this Europe over trade and security policy the EU sanctions lists that no EU citizens our national security or our ability day that Pottinger’s team had handed harmed by a decision to allow Huawei would saddle the telecommunica- as Washington threatens reprisals would be included in the lists, even if they to co-operate with ‘Five Eyes’ intel- Johnson’s government a “dossier” of in. tions industry with extra costs and against any governments that allow had been flagged by the US ligence partners,” he said, a reference evidence against Huawei. Johnson’s spokesman on Monday delay technological upgrades. Chinese equipment to form part of presidential administration on their (...) list,” to the US, Canada, Australia and New But it may not impress. Speaking told reporters that a decision would So-called 5G, which stands for the crucial ultra-fast networks. he wrote in the complaint, which was filed Zealand. in September on condition of ano- come “in due course.” The US be- fi fth-generation wireless technol- Of the so-called Five-Eyes in- at Helsinki District Court in October 2018. As some Huawei gear has already nymity, British intelligence offi cers lieves that with the general election ogy, promises speeds as much as telligence-sharing nations, New “The statement of judgment reflects Han- been installed, companies warn that said there was nothing the US knew out of the way, it is imminent. 100-times faster than current 4G Zealand, Australia and the US have delsbanken’s view of the matter and we are a full ban would delay the roll-out of about the company that Britain did The road to a UK decision has been networks, potentially unlocking new effectively banned the company, pleased with the outcome,” Handelsbanken 5G and cost hundreds of millions of not. Andrew Parker, the head of the long and controversial. Some offi cials technologies, including automated while Canada and UK have not so- said in an e-mailed statement to Reuters. pounds. It would also potentially put domestic Security Service MI5, told have pushed for tough restrictions factories. far followed suit.

UBS Group senior banker fired for breach sues for unfair dismissal Aston Martin said to hold funding

Bloomberg said. The bank said that it would continue to defend talks with Stroll and China’s Geely London against the accusations. “We wouldn’t comment on ongoing proceedings other than to say we deny the allegations made in Bloomberg sports utility vehicle. The $189,000 DBX is reported over the weekend that Chinese A former UBS Group AG veteran who was dismissed the claim,” UBS said. London at the heart of Aston Martin’s turnaround battery maker Contemporary Amperex following a compliance-breach investigation is suing In British employment cases, an award is capped plans, which include more than doubling Technology Co Ltd may take a stake in As- the bank in London, saying his departure was “highly at just above £80,000 ($104,000) unless a worker annual output to 14,000 autos by 2023. ton Martin. A CATL representative denied unfair.” can show discrimination or that they were fired for ston Martin Lagonda Global Hold- Aston Martin has received 1,800 orders the report. Michel Lee, a senior banker in Hong Kong who blowing the whistle on improper actions. ings Plc is making a last-ditch ef- for the model, meeting a condition for the Stroll built his fortune by investing in worked on many of China’s largest corporate During his cross-examination on Monday, Lee Afort to bring in fresh funding, with carmaker to obtain a follow-on loan for fashion labels including Pierre Cardin, fundraisings, was dismissed after an internal probe apologised for being “emotional.” He frequently billionaire Lawrence Stroll closest to com- $100mn. Ralph Lauren and Tommy Hilfi ger through into the disclosure of confidential information to a appeared frustrated, raising his voice only to be mitting to buying a stake in the struggling “We remain in discussion with potential Global Brands Acquisition Corp. The ty- client in 2018. At an employment tribunal in London, interrupted by the judge. UK luxury-car maker, according to people strategic investors in relation to building coon may seek a seat on Aston Martin’s he also said he suff ered after whistleblowing Lee’s group at UBS worked on financing many of the familiar with the matter. longer term relationships which may or board of directors if he goes ahead with the and from sexual discrimination. UBS is fighting largest Chinese conglomerates as they stepped up The Canadian investor and owner of may not involve an equity investment,” investment, one of the people said. the employment claim on jurisdiction grounds, the pace of acquisitions to a record. UBS was one of the Racing Point Formula One team is Aston Martin said in an e-mailed state- Aston Martin made clear the depth of its according to court filings. four banks to hold collateral for $3bn of loans to the in advanced discussions to inject about ment over the weekend. troubles as it reported a severe decline in Lee specialised in off ering equity derivative products heavily indebted HNA Group Co after helping fund £200mn ($260mn) as part of a capital in- profi t in its fi rst full year as a listed com- before he was fired in 2018 in a decision taken by the acquisition of Hilton Worldwide Holdings Inc. crease by the automaker, said one of the “We remain in discussion with pany. Its avenues for fi nancing have nar- the president of the investment bank in London. Lee was designated a “material risk taker” by the people, asking not to be identifi ed because potential strategic investors in rowed amid weak operating performance He’d worked for 25 years at UBS, including 11 in London branch for the purposes of UK Prudential the talks are confi dential. relation to building longer term and its year-end cash balance stood at Hong Kong. The claim is at an early stage and Regulatory Authority rules, according to the filing. Separately, Chinese tycoon Li Shufu’s relationships which may or may not £107mn, according to January’s trading the full details of the complaint aren’t available, The Hong Kong off ice wasn’t legally allowed to run Geely Group has held preliminary discus- involve an equity investment” statement. but Lee’s filing said that UBS determined that his an equity derivatives position, he said. sions about a possible investment in Aston Alongside declining profi t, Aston Mar- alleged misconduct was a breach of Hong Kong “Hong Kong regulators would never allow losses to Martin, the people said. Geely, which con- A representative for Racing Point didn’t tin is facing the prospect of raising ad- employment standards. be taken in Hong Kong,” he said. trols Sweden’s Volvo, Britain’s Lotus Cars immediately respond to requests seeking ditional debt funding which may bring Throughout his tenure, Lee was always formally UBS operated much of its business through its and holds a minority stake in Daimler AG, comment outside of business hours. Geely its total outstanding debt to over £1bn. It an employee of UBS’s London branch, he said London branch, Lee’s lawyer Jonathan Cohen said. is primarily interested in a technology- declined to comment. is set to pay a 15% coupon on the planned in his filing at the start of a preliminary hearing. That UK unit is the business that enters into contracts sharing deal that could benefi t businesses Talks with various investors may not $100mn of debt fi nancing. The banker was paid above the salary cap for a with customers and holds the collateral of any such as Lotus, they said. lead to a transaction and the size of any Private equity fi rms Investindustrial and managing director in Hong Kong and compensated financing, he said. “It is the hub of the UBS investment Aston Martin’s profi t warning last week stake sale could change, the people said. Kuwait’s Adeem control more than 60% of as if he was working in London. He also faced UK bank, from which spokes lead out to staff prospecting underscored the urgency for the carmaker Aston Martin’s bonds jumped on Fri- Aston Martin. European investment fi rm disciplinary proceedings rather than those in Asia, he business elsewhere in the world,” Cohen said. to secure new investors to help pare debt day after Financial Times reported on a Investindustrial is expected to participate and fi nance the production of the DBX possible investment by Geely. Sky News in a capital increase, two of the people said. Gulf Times Wednesday, January 15, 2020 15 BUSINESS China subsidies haunting US steel industry that’s losing jobs

Bloomberg for a loss of 9,500 jobs, and US industry “American workers are now counting said by telephone. “If not for the tariff s WTO against the subsidies, leaving a American steel production grew about New York groups say that without an agreement on the administration to bring home these companies would be in very blueprint for the Trump administration 10% from 2015 to 2018. But the number on the subsidies China is paying out a real agreement with China that significant distress rather than investing to fight them. of jobs has fallen by 8.8%, according to more losses could be ahead. includes action to address China’s billions modernising facilities. But we Instead, Trump slapped 25% duties the Bureau of Labor Statistics, as the If the latest monthly manufacturing Trump is about to sign a Phase 1 trade massive industrial subsidies,” Paul would much prefer that these other on all steel imports and 10% levies on industry became more eff icient with so- data suggests anything, it’s that pact that is not expected to address said in a statement. “Without that countries that are heavily subsidising foreign aluminium, with no regard for called mini mills that use mostly scrap President Donald Trump’s tariff s haven’t the issue of Chinese steel production change, this decade looks to be a their steel and aluminium production where it originated. While they boosted metal to make steel. yet solved a key issue haunting US and other aspects related to industrial tough one for America’s factory cease and desist from doing so.” short-term profits for US steelmakers Meanwhile, in late-December US Steel steelmakers: China’s subsidising of its policy. He has said that once that’s workers.” The US and other World Trade and aluminium producers, the eff ects announced it would begin to idle a own industry. complete Phase 2 talks can begin. Peter Navarro, the White House adviser Organisation members have long have worn off . giant plant outside Detroit in April, Manufacturing jobs in December China’s subsidies are giving its metals on trade, says the Trump administration criticised China’s domestic steel Since Trump announced the tariff s, when it will begin laying off as many unexpectedly fell by 12,000 with a key industry an unfair edge and need to be is “well aware of the problem. We’re subsidies, which they said have led to US Steel Corp has lost about 75% of as 1,545 workers. The company said part of the drop coming in businesses part of any future pact, according to fully engaged, and it’s something that massive overcapacity in global markets. its value, Alcoa Corp is down about it anticipated that the final number of that make raw and fabricated metals. Scott Paul, president of the Alliance for needs to be firmly addressed.” The Obama administration, days before 56% and Nucor Corp, the biggest impacted employees will be lower than The metal-making industries accounted American Manufacturing. “The tariff s are working beautifully,” he leaving off ice, filed a complaint with the US steelmaker, is down about 21%. the announced number.

A Swiss Bank is selling US consumer prices rise slightly in rich clients an exotic US Dec; underlying infl ation muted election bet Bloomberg Consumer price index rises 0.2% London in December; CPI increases 2.3% year-on-year; core CPI gains 0.1%; up 2.3% year-on-year A Swiss wealth manager is pitching a racy way to bet on stocks ahead Reuters of potential market disruptions Washington spurred by the US presidential election. Julius Baer Group Ltd is selling S consumer prices rose slightly as much as $40mn of structured less than expected in December notes tied to large American Uand monthly underlying infl a- companies hinging on which party tion pressures retreated, which could holds the White House next year. allow the Federal Reserve to keep in- Pick the note that corresponds to terest rates unchanged at least through the winner and profit, at least in this year. theory. The Labour Department said yester- The private bank’s “Democrat Victo- day its consumer price index increased ry” note includes Main Street names 0.2% last month after climbing 0.3% in such as Ford Motor Co and Walmart November. Inc. Its ostensibly Republican-friend- The monthly increase in the CPI has ly portfolio features technology and been slowing since jumping 0.4% in financial firms like Google parent October. Alphabet Inc, Amazon.com Inc and In the 12 months through December, Citigroup Inc. the CPI rose 2.3%. That was the larg- Julius Baer, which oversees 422bn est increase since October 2018 and Swiss francs ($436bn), is wading followed a 2.1% gain in the 12 months into the famously fraught and through November. speculative debate over the partisan The CPI jumped 2.3% in 2019, the drivers of this record stock rally. For largest rise since 2011, after increasing many traders, Wall Street’s disas- 1.9% in 2018. trous calls in the run-up to the 2016 Economists polled by Reuters had election remain a fresh memory. forecast the CPI would rise 0.3% in Structured products may strike December and advance 2.3% on a year- many as an obscure way to play on-year basis. the election cliff hanger but the Excluding the volatile food and en- instruments are big business in ergy components, the CPI edged up Switzerland, where investors in the 0.1% after climbing 0.2% in November. third quarter bought and sold some The so-called core CPI was up by an 94bn Swiss francs worth, according unrounded 0.1133% last month com- to a trade group. pared to 0.2298% in November. “I am sure that other issuers will Underlying infl ation in December shortly come up with some similar was held back by declines in the costs thematic baskets for their retail of used cars and trucks, airline tickets A Simbe Robotics Tally shelf-scanning robot travels through an aisle at a Giant Eagle Market District supermarket in Pittsburgh, Pennsylvania. The Labour Department clients,” said Martin Raab, a Zurich- and household furnishing and opera- said yesterday its consumer price index increased 0.2% last month after climbing 0.3% in November. based senior portfolio manager at tion, which off set increases in the pric- Asset Security Trust, who buys the es of healthcare, apparel, new motor The Fed tracks the core personal showed policymakers generally ex- 3.5% and a broader measure of labour accelerated 2.1% and consumers paid products on occasion. vehicles, recreation, and motor vehicle consumption expenditures (PCE) price pected infl ation would eventually hit market slack dropping to a record 6.7%. more for hospital services and doctor The Julius Baer notes have a term insurance. index for its 2.0% infl ation target. the central bank’s target as the econo- In December, gasoline prices advanced visits. of one year and pay out the per- In the 12 months through December, The core PCE price index rose 1.6% my continued to expand and resource 2.8% after rising 1.1% in November. Apparel prices increased 0.4% after formance of the basket at maturity. the core CPI increased 2.3%, the larg- on a year-on-year basis in November. utilisation remained high. Food prices gained 0.2% after edging nudging up 0.1% in November. With entry costs between 1.28% est gain since October 2018, after rising It undershot its target in the fi rst 11 There were, however, concerns up 0.1% in November. New vehicle prices rebounded 0.1% and 1.4%, they’re more expensive 2.3% in November. months of 2019. among some offi cials “that global or Food consumed at home ticked up after declining for fi ve straight months. than a typical exchange-traded For all of 2019, the core CPI accel- PCE price data for December will be technology-related factors were ex- 0.1%. Owners’ equivalent rent of pri- Prices for used motor vehicles and fund, but they can be cheaper and erated 2.3% after increasing 2.2% in published later this month. erting downward pressure on infl ation mary residence, which is what a home- trucks dropped 0.8% last month after quicker for issuers to put together. 2018. The US central bank last month that could be diffi cult to overcome.” owner would pay to rent or receive increasing 0.6% in November. Structured products use deriva- US left interest rates steady and signalled Moderate infl ation was underscored from renting a home, increased 0.2% The cost of household furnishings tives to track the performance of stock index futures were trading monetary policy could remain on hold by last week’s employment report, for a third straight month. and operations dropped 0.4% in De- an underlying asset. mixed while prices of US this year after it reduced borrowing which showed the increase in annual Healthcare costs jumped 0.6% in cember, the largest decrease since De- A spokeswoman for the bank said Treasuries were higher. costs three times in 2019. wage growth retreating below 3.0% in December after rising 0.3% in the prior cember 2014. she couldn’t comment on indi- The dollar was up against a basket of Minutes of the Fed’s December 10- December, despite the unemployment month. Airline fares fell 1.6%, declining for a vidual securities. currencies. 11 meeting published early this month rate holding at near a 50-year low of Prices for prescription medication third straight month.

Yellen urged colleagues in 2014 to beware commenting on dollar

Bloomberg like, ‘I don’t have anything for you on debates about appropriate policy,” she New York that. As you know, the Treasury speaks said. for the US government on international “If we stake out positions in advance economic policy and the dollar’.” of meetings and we have already Then-Federal Reserve Chair Janet Yellen’s successor, Jerome Powell decided that it doesn’t matter what our Yellen opened the US central bank’s is under relentless pressure from colleagues have to say, there is no real October 2014 policy meeting with President Donald Trump to cut rates reason for us to meet at all. We could an unusual warning to Fed off icials: and weaken the dollar and continues save travel expenses by phoning in our Be careful what you say in public, to heed that advice. votes.” especially when it comes to the US A broad, trade-weighted measure Arms Race dollar. of the value of the US dollar against Confusion sown by competing “By longstanding agreement, other currencies maintained by the comments among Fed off icials — the the Treasury speaks for the US Federal Reserve Board rose by 26% US central bank has as many as 19 government on international from the start of July 2014 to the end policymakers when all seven seats on economic policy and the dollar,” of December 2016 as the Fed lifted the board in Washington are filled — Yellen told the Federal Open Market interest rates from near zero, leaving has been an enduring criticism of the Committee, according to a transcript counterparts in the eurozone and institution. of the meeting published on Friday. Japan behind. An academic paper presented at “It is important to respect this division Yellen’s warning was part of a broader last weekend’s American Economic of labour by carefully limiting our rebuke on the subject of public Conference by University of California remarks about exchange rates.” communications, which she said could Berkeley professor Annette Vissing- Her comments followed a rapid rise confused the public and contribute to Jorgensen took a look at what she in the dollar’s value against other market volatility — a comment that still called “the communications arms race” currencies between July and October, rings true in 2020. among Fed policymakers. a move that would extend into 2016 “We have also traditionally emphasised She argued in a paper that Fed and have major implications for the in our communications the collegial, officials compete for the attention global economy. consensus-driven nature of the of financial markets because those “We need to be careful not to ever FOMC policy process, the fact that who succeed in moving the markets’ inadvertently create the impression participants come to meetings with policy expectations gain the upper that we are somehow trying to open minds and, after discussing the hand in policymaking. This leads to jawbone down the value of the dollar,” issues, come to a collective decision,” a cacophony of public appearances she said, before laying out some Yellen said. but also to a “quiet cacophony” guidelines for her colleagues to follow This tradition “could be threatened of informal communication Janet Yellen, former chair of the US Federal Reserve, speaks during a news conference in Washington, DC (file). “By including what to say when cornered by what strikes me as an increasing between policymakers and market longstanding agreement, the Treasury speaks for the US government on international economic policy and the dollar. by a reporter: tendency for participants to take newsletters or the news media, It is important to respect this division of labour by carefully limiting our remarks about exchange rates,” Yellen had told “I would recommend saying something strong stands in public on ongoing Vissing-Jorgensen said. the Federal Open Market Committee, according to a transcript published on Friday. Wednesday, January 15, 2020 GULF TIMES BUSINESS QIB named ‘Best Islamic Bank in Qatar’ by EMEA Finance

Qatar Islamic Bank (QIB) has been to deliver even more value to our sovereigns and companies. Awards are products and services are simpler, named ‘Best Islamic Bank in Qatar’ for customers and shareholders in future.” presented to the top performing Islamic, faster, and easy to use. QIB has the third consecutive year in the 12th The Middle East Banking Awards commercial, and investment banks, as transformed into a 24x7 institution, edition of the Middle East Banking celebrates the achievements of banking well as asset managers and brokers offering customers the possibility to Putting the Awards presented by EMEA Finance. institutions that have reported record in countries across the Middle East. In perform the majority of their daily customer in The award marks QIB’s strong financial profits, demonstrated the highest turn, it highlights the successes of banks banking needs through the bank’s the heart of its performance and the successful standards of services, developed and individuals that have exceeded award-winning mobile App and strategy, QIB implementation of its business strategy. innovative products, and achieved expectations by excelling in their Internet banking, anytime, anywhere, has embarked QIB Group CEO Bassel Gamal said, overall excellence in the banking performance. without the need to visit a branch. QIB on a digital “We are pleased to have the bank’s industry. Putting the customer in the heart of its will continue to diversify and enhance transformation commitment and dedication to all its EMEA Finance is a leading bi-monthly strategy, QIB has embarked on a digital digital offerings to meet and exceed programme stakeholders recognised by such an global industry publication that reports transformation programme to provide the expectations of its customers. to provide established organisation. To be awarded on major financial events initiated and a seamless experience for its customers Recently, Moody’s Investors Service has a seamless the ‘Best Islamic Bank in Qatar’ is a influenced by the international financial on all digital channels. QIB’s digital aff irmed the long-term deposit ratings experience for true testament to our customer-centric industry active in Europe, the Middle transformation focuses on improving the of QIB at “A1”. In November 2019, Fitch its customers strategy and continuous investments in East, and Africa. customer experience, creating internal Ratings aff irmed Qatar Islamic Bank at on all digital innovation and technology. The awards are granted based eff iciencies, and contributing positively ‘A’. Also, in May 2019, Capital Intelligence channels “Achieving such awards wouldn’t have on thorough evaluation of the to the bank’s results. Ratings (CI) has aff irmed the bank’s been possible without the hard-work of performances of regional economies The bank has launched innovative Long-term Currency Rating (LTCR) of ‘A+’. all our employees. Having our team’s and banking systems, as well as analyses services and features for each In March 2019, Standard & Poor’s (S&P) eff orts recognised keeps us motivated of landmark capital-markets deals from customer segment to ensure that key aff irmed the bank’s credit rating at ‘A-’.

QSE surpasses 10,600 levels on foreign funds’ Ahlibank announces Tawfeeq buying interests

By Santhosh V Perumal QR71.19mn on January 13. Travel as its newest credit card Business Reporter Local retail investors’ net sell- ing weakened noticeably to QR38.81mn against QR40.22mn The Qatar Stock Exchange on Monday. yesterday gained for the fourth Domestic institutions’ net sell- straight session to surpass ing also declined perceptibly rewards programme partner 10,600 levels mainly on sus- to QR25.21mn compared to tained buying interests from QR26.29mn the previous day. n a new partnership, Ahl- foreign funds. The Gulf institutions’ net profit ibank credit cardholders An across-the-board buying, booking shrank influentially to Iwill be able to redeem their particularly within insurance and QR1.83mn against QR3.31mn on pearl points for ticket bookings industrials, led the 20-stock Qatar January 13. on any airline of their choice at Index settle 0.65% or 69 points The Gulf individual investors’ Tawfeeq Travel branches located higher at 10,636.7 points, amidst net selling fell marginally to throughout the country. weakened trading environment. QR0.49mn compared to QR1.1mn This collaboration will en- The weakened net selling by lo- on Monday. able cardholders to fl y with any cal retail investors and domestic However, non-Qatari individuals’ airline that meets their require- institutions were seen helping net selling grew perceptibly to ments to various destinations the market, which is up 2.03% QR9.52mn against QR6.92mn around the world. The arrange- year-to-date. the previous day. ment would also enable Ahl- Market capitalisation saw about Total trade volumes fell 37% to ibank credit cardholders to re- QR3bn or 0.51% increase to 75.24mn shares, value by 14% to deem pearl points for booking QR591.59bn mainly owing to QR258.06mn and transactions holiday packages at special rates small and microcap segments. by 29% to 4,204. and also enjoy a 5% additional Islamic stocks were seen gaining The transport sector’s trade vol- bonus. slower than the main barometer ume plummeted 72% to 2.69mn As part of this initiative, on the bourse, where non-Qatari equities and value by 75% to Ahlibank credit cardholders retail investors were increasingly QR9.22mn, while deals grew 18% will avail special travel-related bearish. to 255. deals, promotional offers, and Trade turnover and volumes There was 49% plunge in the exclusive holiday packages were on the decline on the consumer goods sector’s trade with access to express service bourse, where banking, real volume to 4.7mn stocks, 44% in counters at 10 Tawfeeq Trav- estate and industrials sectors value to QR13.57mn and 70% in els offices across the country. together accounted for about transactions to 396. Tawfeeq Travels, one of the 79% of the total volume. The banks and financial services leading travel management The Total Return Index rose sector’s trade volume tanked companies in Qatar provid- 0.65% to 19,572.43 points, All 49% to 24.81mn shares, value by ing expert advice, first-hand Share Index by 0.56% to 3,158.41 3% to QR151.8mn and deals by travel experiences and quality points and Al Rayan Islamic 25% to 1,738. services, will also offer a dedi- Index (Price) by 0.57% to 2,335.27 The real estate sector reported cated 24-hour service centre points. 45% shrinkage in trade volume for Ahlibank customers, who The insurance index gained to 10.6mn equities, 26% in value will enjoy tailor-made, exclu- 1.04%, industrials (0.9%), tel- to QR15.78mn and 45% in trans- sive travel services with prior- ecom (0.63%), consumer goods actions to 275. ity handling. (0.52%), banks and financial The industrials sector’s trade Earning pearl points and re- services (0.47%), transport volume shrank 19% to 24.01mn deeming them for Tawfeeq Trav- (0.27%) and realty (0.12%). stocks, whereas value rose less el vouchers is simple. Ahlibank More than 59% of the traded than 1% to QR44.97mn despite credit cardholders have multiple stocks extended gains with ma- 3% lower deals at 954. ways to redeem, including digit- jor movers being Qatar Islamic However, the telecom sector’s ally. They can redeem their pearl Bank, Woqod, Industries Qatar, trade volume more than dou- points by fi lling the Pearl Re- Ahlibank Deputy CEO — Business Support Services and Human Resources Mohamed al-Namla with Tawfeeq Travel CEO Rehan Ali Syed, and Mesaieed Petrochemical Hold- bled to 5.71mn shares and value wards redemption form at their other senior off icials. ing, Qatar Industrial Manufac- shot up 30% to QR14.89mn, nearest Ahlibank branch, or by turing, Qatari Investors Group, whereas transactions were calling +974 4420 5222 or digit- travel management companies tomer always comes fi rst at Ahl- the leading banking Institutions venience and fl exibility to our Qatar Insurance, Al Khaleej down 5% to 466. ally through Ahlibank Online or in Qatar and a trusted name for ibank and we believe strongly in Qatar. Ahlibank credit card- customers. Coupled with our Takaful, Vodafone Qatar and Na- The insurance sector’s trade vol- Mobile Banking application. years. Our aim at Ahlibank has that our responsibility towards holders can now benefi t from knowledge and expertise, we kilat; even as Salam International ume almost doubled to 2.72mn Ahlibank Deputy CEO — always been to provide the wid- them goes beyond providing our expertise and avail a range aim at delighting our customers Investment, Doha Bank, Dlala, equities and value more than Business Support Services and est range of services and the them with fi rst class banking of exclusive services under this every time.” QIIB and Gulf Warehousing were doubled to QR7.84mn on 1% rise Human Resources, Mohamed most personal banking experi- services.” partnership.” More information on Ahl- among the losers. in deals to 120. al-Namla, said, “We are very ence. Tawfeeq Travel CEO Rehan “Tawfeeq Travel has an ex- ibank’s Pearl Rewards Pro- Non-Qatari funds’ net buy- In the debt market, there was no proud to have established this “This partnership will result Ali Syed said, “We are delighted tensive network of 10 retail loca- gramme can be obtained by call- ing increased marginally to trading of sovereign bonds and partnership with Tawfeeq Trav- in signifi cant added value for to announce our strategic part- tions spread strategically across ing +974 4420 5222 or visiting QR72.33mn compared to treasury bills. els as they are one of the leading our credit cardholders. The cus- nership with Ahlibank, one of Qatar off ering unmatched con- ahlibank.com.qa

Qatar’s cost of living drops 0.33% in Dec

By Santhosh V Perumal 12.68% weightage in the CPI basket, saw a 2.89% Business Reporter plunge year-on-year but surged 4.9% month-on- month in December 2019. Communication, which carries 5.87% weight, saw its Qatar’s cost of living, based on consumer price group index shrank 0.11% on yearly basis but treaded index (CPI) inflation, declined 0.33% year-on-year in a flat path month-on-month in December last year. December 2019, mainly on fall in the indices of hous- The index of health, which carries 1.79% weightage, ing, utilities, transport and recreation, according to was down 0.07% on a yearly basis, even as it was flat off icial statistics. month-on-month in December 2019. The country, however, witnessed a 0.46% jump in in- However, the index of Tobacco, which has 0.27% flation on a monthly basis, said the figures released weight and was flat on a monthly basis, had more by the Planning and Statistics Authority (PSA). than doubled year-on-year with the government The International Monetary Fund, in its latest Article substantially hiking excise tax on cigarettes from IV consultation with Qatar, said inflation is projected to January 2019 peak at 3.7% in 2020 with the introduction of a value Miscellaneous Goods and Services, which have added tax, but converge to 2% in the medium term. 5.69% weightage, saw its index surge 3.46% on a The index of housing, water, electricity and other yearly basis but saw a 0.06% decline month-on- fuels — with a weight of 21.89% in the CPI basket month in December 2019. — saw a 2.61% and 0.37% decline year-on-year and The index of clothing and footwear, which has 5.11% month-on-month respectively in December 2019. weightage in the CPI basket, soared 3.05% year-on- The CPI of December 2019 excluding “housing, wa- year, even as it showed a 1.29% slump month-on- ter, electricity, gas and other fuels, expanded 0.3% month in December 2019. and 0.69% on yearly and monthly basis respectively. The index of restaurants and hotels, which have The index of transport, which has 14.59% weight- 6.08% weight, jumped 1.74% and 0.36% on yearly age, tanked 2.17% year-on-year but shot up 1.17% and monthly respectively in the review period. month-on-month in December 2019. The sector has Food and beverages, which has a weight of 12.58% the direct linkage to the dismantling of administered in the CPI basket, witnessed a 0.98% increase year- prices in petrol and diesel. on-year; whereas it shrank 1.34% month-on-month in The price of super gasoline had witnessed a year- December 2019. on-year increase of about 3% in December 2019, Education, with 5.75% weightage, also saw its index while it was flat on a monthly basis. In the case of tread a flat course on a monthly basis but registered premium gasoline, it declined by about 3% on yearly 0.93% growth on a yearly basis. basis; whereas it was up about 2% month-on-month. In the case of Furniture and household equipment, Diesel prices plummeted 8% year-on-year; but were which have 7.7% weightage in the CPI basket, it was unchanged month-on-month. up 0.02% on a yearly basis but dipped 0.1% month- The index of Recreation and Culture, which have on-month in December 2019.