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Thursday, July 25, 2019 Dhul-Qa’da 22, 1440 AH AVIATION NEWS REPORTS: Page 12 Central Africa GULF TIMES routes on airlines’ BUSINESS radar over Ebola UDC posts QR238mn in H1 net profit on QR912mn revenues

United Development Company (UDC) has Al-Othman, who is also member of the reported a net profit of QR238mn over board, said the first half of 2019 marked the revenues of QR912mn for the first half of achievement of several milestones for UDC, 2019. The net profit attributable to the equity both in terms of sales and leasing. UDC’s shareholders was QR225mn and basic earnings success in positioning The Pearl-Qatar as per share was QR0.063. an attractive destination for those seeking UDC chairman Turki bin Mohamed al-Khater a lively community to live, work, and do Sheikh Abdul Rehman: Strong results. Sheikh Fahad: Robust growth. Seetharaman: Untiring eff orts. said UDC managed to build on its stable business was again evident in 2019, he noted. financial results in the first half of 2019 and is He said: “Our business model has proved actively pursuing development projects across its success during challenging times in the The Pearl-Qatar and Gewan Island. regional real estate sector. The residential With the launch of the sale of 10 tower land leasing occupancy rates at The Pearl-Qatar plots in Floresta Gardens and the fourth sales remained steady in the first half of 2019 phase of Al Mutahidah Towers, al-Khater said compared to the same period in 2018.” Doha Bank H1 net profi t UDC is well positioned to sustain its positive Al-Othman said UDC added two prestigious results, as it gears up to launch the construction accolades to its list of honours at the ‘Arabian works for United School International and the Property Awards 2019-2020’, which included Floresta Gardens, as well as Giardino Village the ‘Best Mixed-Use Development Award’ for gated residential compounds. The Pearl-Qatar and the ‘Commercial High-Rise rises 10.2% to QR519mn Al-Khater said, “Through off erings that serve Development Award’ for UDC Tower. the community needs of The Pearl-Qatar, UDC In this context, he said UDC will pursue its will further bolster the island’s position as an eff orts to enhance The Pearl-Qatar’s position oha Bank has posted a portfolio increased by QR5.5bn, tal adequacy ratio of the bank er,” Seetharaman said. During attractive destination for families and business as a local and regional business and tourism half yearly net profi t of showing a signifi cant growth of increased to 17.4% in H1, 2019 the year, Doha Bank completed professionals alike. destination that features annual events and DQR519mn, up 10.2% on 27.7% as compared to the same from 16.6% in the same pe- 40 years of operations. The “In this regard, UDC has named Orbital festivals and a growing number of retail outlets QR471mn registered in H1, 2018. period of the last year. riod last year. The bank, given bank announced a campaign by Education as the operator of United School and brands. Doha Bank chairman Sheikh Sheikh Fahad highlighted that the scale of its operations, has off ering gold rewards, launched International in Giardino Village precinct, and Al-Othman added: “UDC continued to Fahad bin Mohamed bin Jabor the achieved half yearly profi t of achieved a return on the average a new housing loan campaign tasked Al Darwish Engineering Company to provide the necessary public services to the al-Thani said the bank has made QR519mn as against QR471mn assets of 1.05% as of June 30”. as well as a Qatari buyout loan undertake the construction works for the island’s residents and visitors, ratifying a “signifi cant progress in improv- in the same period last year was Sheikh Abdul Rehman “laud- campaign off ering interest development of the School, in addition to new memorandum of understanding in June ing the cost management and due to “robust” growth on in- ed the performance” of the QE rates as low as 0%. awarding Ramaco Trading & Contracting 2019 with the Ministry of Interior to promote, effi cient utilisation of resources” vestment income and control Index ETF ‘QETF’ fund, where On this achievement, Dr Company the design and construction works of ensure, and provide traff ic and road safety where the operating cost for the on operating expenses. This was the fund achieved a total return Seetharaman said, “This new Floresta Gardens Gated Compound.” measurements and traff ic services across The period decreased by 8.2% as done as the bank focus was on of 20% in 2018, outperforming campaign is our way of thank- He added: “Our excellent customer service and Pearl-Qatar. We look forward to a promising compared to same period last strengthening the provisions. most ETFs in the world. ing our loyal customers for their rich portfolio of projects across The Pearl-Qatar future, as we continue to invest in the year thus reducing the cost to in- He expressed his satisfaction On Doha Bank H1 perform- continued support throughout will attract new investors to the Island and development of sustainable projects that will come ratio to 35.5% from 36.6% with the growth of the interest ance, Dr Seetharaman, chief the years as well as for inspiring enable UDC to sustain its diversified revenue reward the shareholders over the long term.” showing bank’s productive op- income by 5.5% as compared to executive offi cer said, “This us to innovate new products and stream.” UDC, the master developer of The Pearl- erational performance. the same period last year. achievement is the culmina- services to excel in our business.” UDC president and CEO Ibrahim Jassim Qatar and Gewan Islands, is a leading Qatari Sheikh Fahad said Doha Fitch has affi rmed Doha tion of untiring eff orts of various Furthermore, the bank also al-Othman said UDC is committed to pursue public shareholding company with a mission bank’s total assets increased by Bank’s Long-Term Issuer De- parties who contributed to the off ered a new Al Dana Savings its development activities mainly evidenced to identify and invest in long-term projects QR11.6bn, registering a growth fault Rating (IDR) at ‘A’ with a QETF’s success in its fi rst year Plan, a summer promotion for by the development of Gewan Island project contributing to Qatar’s growth and providing of 13.1%, from QR89.2bn as on ‘Stable’ outlook, which recog- of operations.. We believe the visa credit cardholders to earn with an investment value of approximately good shareholder value. June 30 last year to QR100.8bn nise Doha Bank’s sustainable QETF holds immense promise additional Doha Miles on in- QR3bn. Established in 1999, the company was first as in June this year. business model in the current and opens a gateway to the Qatari ternational spend, a personal According to the development plans, the listed on the Qatar Exchange in June 2003. It Net loans and advances in- business environment. market for global investors.” loan campaign with MetLife’s award of the marine works to UrbaCon has a shared capital of QR3.5bn and total assets creased to QR60.9bn in H1 from Doha Bank managing director “Despite challenging market Future Protect insurance policy Trading & Contracting Company and Promar of approximately QR18bn as of June 30, 2019. QR58bn for the same period last Sheikh Abdul Rehman bin Mo- conditions, Doha Bank’s per- and a new car loan campaign. Marine Contracting Company, and securing UDC activities cover a multitude of vital year, registering a growth of 5.1%. hamed bin Jabor al-Thani said, formance throws light on its Earlier in the year, Doha Bank the financing arrangement with QNB and investment sectors, including real estate Customer deposits showed a “The total shareholder’s equity superior products and services, launched the 16th edition of its Commercial Bank for the development of development, property management, year-on-year increase of 7.2% stood at QR13.3bn as of June 30 ongoing customer demand and Al Dana Scheme, crowned the Gewan Island with a credit ceiling of QR1.25bn infrastructure and utilities, maritime, and from QR51.9bn to QR55.6bn as this year, from QR12.5bn for the capitalising on market syner- fi nal millionaire of Al Dana Sav- have been concluded, al-Othman said. hospitality related businesses. of June 30 this year, which is same period last year, registering gies.” The bank’s top ranking ings Scheme’s 15th edition, un- evidence of the “strong liquid- a growth of 5.7%. of listed companies in Qatar by veiled the latest release of ‘Doha ity position” of the Bank. “The bank continued to ESG Invest, for the second year Bank My Book Qatar’ and felici- Sheikh Fahad pointed out that strengthen its key capitalisa- in a row, reinforced its position tated winners of its ‘Qmiles’ and the total fi nancial investment tion ratios, where the total capi- as a global sustainability lead- ‘Gold Rush Cards’ campaigns.

Pinsent Masons holds seminar on Arbitration in Qatar

International law firm Pinsent Masons held a professional body promoting and enforcing tion and what the proceedings and enforcement seminar on ‘Arbitration in Qatar — practical the highest international standards in the valu- of an arbitration involve. The session also issues and pitfalls to avoid’ to an audience of ation, management and development of land, considers techniques aimed at reducing the cost professionals in key sectors including infra- real estate, construction and infrastructure. of arbitration and streamlining the proceedings”. structure and energy. McDonald said, “Pinsent Masons continu- Yasmine Nashawati, RICS dispute resolution At the conference, Pamela McDonald, senior ously participates in useful seminars that raise service manager, said, “With the number of associate at Pinsent Masons’ Qatar, discussed awareness and share knowledge about dispute mega projects currently ongoing in Qatar, it key aspects of the country’s Arbitration Law avoidance and resolution, including arbitration is important to understand the key aspects of and practical issues that users of arbitration in Qatar. The main learning outcomes of this Qatar laws and how to best avoid disputes. We in Qatar should be aware of when drawing up seminar include understanding Qatar’s arbitra- are pleased to have hosted this insightful event contracts and conducting arbitral proceedings. tion landscape, what constitutes an arbitration for our professionals, providing them with es- The event was organised by the Royal Institu- agreement and their prevalence in the construc- sential knowledge that helps them navigate the tion of Chartered Surveyors (RICS), the global tion industry in Qatar, how to approach arbitra- current legal structures in Qatar.” Al-Othman: Promising future. Al-Khater: Well positioned.

UDC signs agreement with QNB, Commercial Bank to fi nance Gewan Island development

nited Development Company QNB and Commercial Bank lays sol- development of the State of Qatar, and The island will off er its residents a (UDC) has signed an agreement id foundations in terms of support- we are confi dent this distinguished and comprehensive living space merging Uwith QNB and Commercial ing UDC’s expansion plans and de- iconic project will have a very positive entertainment and retail outlets with Bank to fi nance the development of Ge- veloping its operations base through impact on the local economy by creat- smart technologies. It is expected to at- wan Island project with a credit ceiling investments in real estate develop- ing another attractive destination for tract a warm, welcoming and youthful of QR1.25bn. ment projects. residents, visitors and investors.” community seeking an urbane and vi- The signing of the agreement comes In addition, the agreement falls in line Gewan Island, UDC’s latest real es- brant lifestyle. within the framework of UDC’s devel- with UDC’s eff orts to provide superior tate project next to The Pearl-Qatar Is- The island will include a golf course, opment plans for Gewan Island, the real estate products in the local market land, will span 400,000sq m. an air-conditioned outdoor Crystal fi rm’s latest major real estate invest- and to meet the needs of investors and Once completed, the island will ac- Walkway which acts like the Island’s ment project. UDC president and CEO residents alike, al-Othman added. commodate 3,500 residents and 3,000 spine, green parks and which will at- Ibrahim Jassim al-Othman signed the Al-Khalifa said, “We are proud to be daily visitors, and will be home to 712 tract new brands to Doha. The Island agreements with QNB acting Group part of such a distinguished partnership units, including 639 apartments, 41 will also be home to entertainment fa- CEO Abdullah Mubarak al-Khalifa with UDC. This agreement represents a waterfront villas (out of which 20 vil- cilities, a sports club and a mosque. and Commercial Bank Group CEO successful model of a strategic alliance las are standalone villas), 26 beachfront Its design incorporates a number of Joseph Abraham during a ceremony within the framework of developing and UDC president and CEO Ibrahim Jassim al-Othman signing the agreements with QNB villas, six island villas, in addition to sustainability features to reduce the held at the Oyster Building at The strengthening the national economy. acting Group CEO Abdullah Mubarak al-Khalifa and Commercial Bank Group CEO 11,000sq m of retail space and a number use of vehicles and encourage walking Pearl-Qatar in the presence of repre- “We hope that this agreement will Joseph Abraham during a ceremony held at the Oyster Building at The Pearl-Qatar. of multiuse buildings. and biking through dedicated pedes- sentatives from all parties. support UDC’s objectives in fi nancing The island, which derives its name trian and cycling networks in addition Al-Othman, who is also member its expansion plans in the fi eld of real developer of long-term projects to the delighted to collaborate with QNB to from the full-round, pink-tinted and to roads connecting the Island to the of the board, highlighted that the estate development as well as QNB’s highest of standards that position Qa- provide solutions for our clients. perfectly shaped pearl from Qatar’s public transportation network. It is total investment value in Gewan directions that aim at fully-supporting tar as an international real estate des- “Being one of the lead banks for fi - marine heritage, will support a mix of also designed to reduce urban heat by Island amounts to approximately the local tourism and country image.” tination. We value our relationship nancing Gewan Island refl ects our property types, catering for diff erent incorporating green roofs, shading, and QR3bn. He said the agreement with Abraham said, “UDC is a premier built with UDC over the years and are strong commitment to the economic accommodation and investment needs. refl ective surfaces, where applicable. Gulf Times 2 Thursday, July 25, 2019 BUSINESS

Metro Bank seeks replacement for chairman

Metro Bank said yesterday it will start the remain as a non-executive director, founder process of recruiting a replacement for its and president, Metro Bank said. founder and chairman Vernon Hill, months “The Board shares Vernon’s view that Metro after an accounting error hammered its Bank has now reached a point where an Latin America central shares, left a hole in its balance sheet and independent chair is appropriate to oversee spooked customers. the next stage of our journey,” Michael Hill will continue as chairman until a Snyder, senior independent director, said in successor is appointed, after which he will a statement, reports Reuters. banks poised to join global rate cut party

Bloomberg The withering growth outlook Brasilia for Latin America’s second-largest economy puts monetary easing in the cards, possibly as soon as Au- ith infl ation subdued in gust, according to Capital Econom- Latin America and its top ics. A rate cut may become even Weconomies fl irting with more likely after the Fed reduces its recession, central banks are gearing policy rate later in the year. Changes up to join emerging market peers to the board of Mexico’s central bank from Asia to Africa in cutting inter- may also have an impact, but those est rates. are unlikely to happen before 2021. Brazil is expected to reduce bor- “Mexico will eventually cut rates rowing costs next week for the fi rst dramatically,” Edwin Gutierrez, time in over a year, after yet another head of emerging-market sover- infl ation reading surprised econo- eign debt at Aberdeen Asset Man- mists to the downside. A slowdown agement, said in an e-mail. “In the in Mexico’s annual consumer price meantime, they have to deal with the index yesterday reinforced the out- fact that they still have three hawks look for monetary easing, whether on the board. That’s going to change sooner or later, and Peru said it’s next year.” considering the same. Last week policy makers in Chile Elsewhere in the region, Chile al- cited slow infl ation and weak growth ready delivered a stunning 50 basis as signs that further monetary stim- points cut last month, and has said ulus may be needed, while Peruvian it could ease its policy further this counterparts likewise fl oated the year. And even Paraguay this week A man crossing a street in Sao Paulo. Brazil is expected to reduce possibility of an easing cycle. reduced its key rate to an eight-year borrowing costs next week for the first time in over a year, after yet Colombia may take longer but will low as below-target infl ation al- another inflation reading surprised economists to the downside. eventually “join in on the fun,” Guti- lowed policy makers to stimulate a errez said. For now, expectations for weakening economy. heavily dragged down by growth of gest legislative hurdle this month steady growth and accelerating in- “The stars have aligned for rate less than 1% in Brazil and Mexico, its and, after economists revised down fl ation give Colombian policy mak- cuts in Latin America,” said Alberto two largest economies. their 2019 growth estimates for fi ve ers less room to cut rates. Ramos, chief Latin America econo- To be sure, benchmark interest straight months, even former policy The real outlier among the re- mist for Goldman Sachs. rates have limited impact in many makers began calling for meaningful gion’s major economies is Argen- Expectations that the US Fed- Latin American countries given that monetary easing. tina. Its benchmark interest rate eral Reserve will soon lower interest informality often saps the strength “Brazil’s economy is not grow- remains the world’s highest above rates are encouraging Latin Ameri- of monetary policy decisions. ing and the central bank’s balance of 58% even after dropping more than can central banks to do the same. Domestic reasons are also play- risks have shifted in a way that allows 15 percentage points since May. The Besides that, falling infl ation rates ing their part in the outlook for for rate cuts right at the next meet- central bank has kept a super tight are a sign of widespread economic lower rates. Brazil’s central bank has ing,” said Bloomberg Latin America monetary policy, with strict controls weakness in the region that, accord- signalled that advance of a crucial economist Adriana Dupita. “Now over the amount of pesos in circula- ing to the International Monetary proposal to overhaul the country’s the debate is about how intense the tion, as it seeks to prevent a currency Fund, will grow just 0.6% this year pension system is essential for a rate easing cycle will be, how much can rout in the run-up to the October — the worst in three years. That is cut. The bill passed its fi rst and big- they cut and for how long.” presidential election. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 30 June 2019

INDEPENDENT AUDITOR’S REPORT ON REVIEW OF CONDENSED CONSOLIDATED STATEMENT CONDENSED CONSOLIDATED INTERIM FINANCIAL OF FINANCIAL POSITION STATEMENTS As at 30 June 2019 To the Board of Directors United Development Company Q.P.S.C. 30 June 31 December Introduction 2019 2018 We have reviewed the accompanying condensed consolidated statement of financial (Reviewed) (Audited) position of United Development Company Q.P.S.C. (the “Company”) as at 30 June 2019, the condensed consolidated statements of profit or loss and other comprehensive QR’000 QR’000 income, changes in equity and cash flows for the six-month period then ended, and the notes to the interim financial statements (“the condensed consolidated interim financial ASSETS statements”). The Board of Directors is responsible for the preparation and presentation Non-Current Assets of these condensed consolidated interim financial statements in accordance with IAS 34 Interim Financial Reporting. Our responsibility is to express a conclusion on these Property, plant and equipment 2,985,711 3,026,216 condensed consolidated interim financial statements based on our review. Investment properties 9,414,597 9,434,550 Scope of review We conducted our review in accordance with the International Standard on Review Right-of-use assets 5,788 - Engagements 2410 Review of Interim Financial Information Performed by the Intangible assets 558 586 Independent Auditor of the Entity. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, Investment in associates 48,267 43,441 and applying analytical and other review procedures. A review is substantially less in Investment securities 61,749 60,581 scope than an audit conducted in accordance with International Standards on Auditing and consequently, does not enable us to obtain assurance that we would become aware Accounts and other receivables 331,215 378,815 of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Deferred costs 130,937 133,438 Conclusion Total Non-Current Assets 12,978,822 13,077,627 Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements as at and for Current Assets the six months period ended 30 June 2019 are not prepared, in all material respects, in Inventories 1,060,434 1,142,539 accordance with IAS 34 Interim Financial Reporting. Work in progress 550,566 403,975 Accounts and other receivables 2,284,646 2,252,860 24 July 2019 Gopal Balasubramaniam Deferred costs 16,952 16,673 Doha KPMG State of Qatar Qatar Auditors Registry Number 251 Cash and bank balances 1,221,115 1,441,122 Licensed by QFMA: External Auditor’s License No. 120153 Total Current Assets 5,133,713 5,257,169

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR Total Assets 18,112,535 18,334,796 LOSS AND OTHER COMPREHENSIVE INCOME EQUITY AND LIABILITIES For the six-month period ended 30 June 2019 Equity Six-month period ended 30 June Share capital 3,540,862 3,540,862 2019 2018 Legal reserve 1,709,919 1,687,457 (Reviewed) (Reviewed) Other reserves 1,212,049 1,212,049 QR’000 QR’000 Retained earnings 4,262,907 4,414,833 Equity attributable to equity holders Revenue 912,225 888,572 10,725,737 10,855,201 Cost of revenue (496,660) (443,918) of the Parent Non-controlling interest 304,182 290,911 Gross profit 415,565 444,654 Total Equity 11,029,919 11,146,112

Dividend income 1,356 2,374 Liabilities Other operating income 29,940 71,157 Gain on sale of investment securities - 10,172 Non-Current Liabilities Fair value gain/(loss) on investment securities 1,168 (29,979) Interest bearing loans and borrowings 2,350,326 2,534,700 Impairment loss on trade and other receivables (1,194) (1,761) Accounts and other payables 140,992 130,042 General and administrative expenses (135,675) (130,089) Sales and marketing expenses (21,702) (22,166) Retention payable 32,201 23,004 Deferred revenue 656,634 662,623 Operating profit 289,458 344,362 Employees’ end-of-service benefits 45,461 36,704 Finance income 21,762 19,765 Lease liability 4,825 - Finance costs (81,511) (88,976) Total Non-Current Liabilities 3,230,439 3,387,073 Net finance cost (59,749) (69,211)

Current Liabilities Net share of results of associates 8,184 4,108 Net profit for the period 237,893 279,259 Interest bearing loans and borrowings 1,262,037 1,249,904 Accounts and other payables 2,418,716 2,354,650 Net profit for the period attributable to: Equity holders of the Parent 224,622 260,432 Retentions payable 108,444 140,025 Non-controlling interests 13,271 18,827 Deferred revenue 62,087 57,032 237,893 279,259 Lease liability 893 -

Other comprehensive income - - Total Current Liabilities 3,852,177 3,801,611 Total comprehensive income for the period 237,893 279,259 Total Liabilities 7,082,616 7,188,684

Total comprehensive income attributable to: Total Equity and Liabilities 18,112,535 18,334,796 Equity holders of the Parent 224,622 260,432 Non-controlling interests 13,271 18,827 237,893 279,259 These condensed consolidated interim financial statements were approved by the Board of Directors and signed on their behalf on 24 July 2019 by: Earnings per share attributable to owners of the Parent Basic and diluted earnings per share (QR) 0.063 0.074 Ibrahim Jassim Al-Othman Abdulrahman Abdullah Al-Abdulghani President and Chief Executive Officer Vice Chairman of the Board Gulf Times 4 Thursday, July 25, 2019 BUSINESS

BoJ divided on need Nissan warns of Q1 profi t to ease next week, plunge; to cut 10,000 jobs strengthen forward Reuters Yokohama guidance

issan Motor Co Ltd warned Reuters yesterday that fi rst-quarter Tokyo Nprofi t tumbled around 90%, a day before it is expected to announce more than 10,000 job cuts as the crisis ank of Japan offi cials are deepens at Japan’s second-largest au- divided on whether to tomaker. Bease monetary policy next The dismal earnings, due to be for- week or hold off , as they grap- mally announced today, mark one of ple with the need to protect the Nissan’s worst quarterly performances economy from an unwelcome in around a decade. yen spike and heightening global The automaker is fi ghting to rein in uncertainties with a dwindling its operations after years of aggres- tool-kit. sive expansion under former chairman There is no consensus with- Carlos Ghosn, ousted last year in a dra- in the BoJ yet on the preferred matic scandal that shook the industry. move at the July 29-30 rate re- The planned job cuts over the next view, as much will depend on the few years include the 4,800 detailed European Central Bank’s policy in May and will mostly be at factories decision today and the market overseas with low utilisation rates, a response, say sources familiar person with direct knowledge of the with the BoJ’s thinking. matter said yesterday. With robust domestic de- Nissan declined to comment on the mand making up for weak Japa- job cuts. nese exports, many BoJ offi cials It said a Nikkei business daily report see no imminent need to ramp up that it suff ered roughly a 90% year- monetary support, and prefer to on-year drop in fi rst-quarter operat- save its limited ammunition for ing profi t was “broadly accurate”. Its when the economy faces bigger shares ended the day up nearly 1% ear- problems, the sources say. lier. But some offi cials worry that Nissan is struggling to improve weak by standing pat at a time US and profi t margins in the United States, European counterparts are seen a key market where Ghosn for years cutting interest rates or signal pushed to aggressively grow market doing so, the BoJ risks appearing share during his time as chief execu- less dovish and sparking a yen tive. spike that would hurt Japan’s ex- Years of heavy discounting to grow ports, they say. sales in the world’s second-biggest Nissan Motor’s Skyline GT vehicles stand on display during a launch event at the company’s headquarters in Yokohama. Nissan is struggling to improve weak profit Many analysts predict the BoJ auto market have left Nissan with fall- margins in the US, a key market where Carlos Ghosn for years pushed to aggressively grow market share during his time as chief executive. will settle for a modest tweak to ing demand for the Altima sedan and its forward guidance – a pledge other models, a cheapened brand im- Now it’s time to enhance the brand,” winding Ghosn’s negative legacies”, ing the arrest of Ghosn, their shared Saikawa at Nissan may be unlikely, central banks make on future age, low resale values, and a nearly bat- he said. which has led to excess, he added. former chairman. Ghosn has been as the automaker has tasked a newly monetary policy moves – and tered bottom line. The job cuts to be disclosed this Regions with signifi cantly under- charged with fi nancial misconduct in formed nominations committee with commit to keeping rates ultra- “Deteriorating performance in the week would exceed 7% of Nissan’s utilised manufacturing capacity which Japan and denies wrongdoing. fi nding his successor. low over a longer-term horizon. United States is a big issue that we’re 138,000-strong workforce and are part could be aff ected by job cuts included Saikawa kept his job in a vote at “We want to start the process to fi nd The idea is among options facing,” Motoo Nagai, chairman of the of a broad “turnaround” strategy to be India and Brazil, another source said. an annual shareholders meeting last a successor to the CEO as soon as pos- debated internally within the automaker’s newly formed audit com- rolled out later this year, said another The latest job cuts highlight the ex- month, fi ghting off a rare rebuke by top sible,” said Masakazu Toyoda, the au- BoJ and will be on the table next mittee, said yesterday. source, a top executive who asked not tent of problems facing chief executive proxy advisory fi rms who urged share- tomaker’s lead external director who week, if the board sees the need “For a long time we were concerned to be named because he is not author- Hiroto Saikawa, who is also grappling holders not to reappoint him consid- also chairs the new committee which to forestall risks to Japan’s econ- with increasing volume (sold in the ised to speak with the media. with fractured relations with French ering he was groomed for leadership will meet for the fi rst time later yes- omy, the sources say. market). We were chasing numbers. The plan would be “aimed at un- alliance partner Renault SA follow- by Ghosn. But an extended tenure for terday. But it is hardly a done deal as some in the BoJ worry that seek- ing to appease markets with a tinkering of wording could backfi re and push up the yen, if it is seen as a sign of its despera- tion, they say. US sanctions hit mysterious China state oil trader “Pledging to keep rates low longer won’t be that eff ective when markets already expect the Bloomberg on China State Council granting ap- BoJ to keep ultra-low rates for Singapore proval to begin a restructuring process. years,” one source said. “Markets But Nam Kwong – the largest supplier may interpret it as a sign the BoJ of energy in Macau – said in a state- is running out of ammunition, he Chinese state-owned oil ment on Tuesday that it separated from which is not good.” trading company sanctioned by Zhuhai Zhenrong in September 2018. Major central banks, including Tthe White House for violating Chinese companies have been known the US Federal Reserve and the restrictions on Iranian crude keeps a to take part in barter trades to settle oil ECB, are cutting rates or shifting low profi le. debts with Iran, or make yuan-denom- to a more dovish policy stance as Even so, Zhuhai Zhenrong Co’s repu- inated payments to escrow accounts in simmering US-China trade ten- tation for doing business with Iran is Chinese banks, avoiding the use of US sions hurt trade activity and glo- well known. The company was set up in dollars and limiting the impact of sanc- bal growth. the mid-1990s by a legendary Chinese tions. FGE forecast in May this year Under a policy dubbed yield trader, Yang Qinglong, with support that China would continue importing curve control (YCC), the BoJ from the Chinese military. The armed around 260,000 barrels a day of Irani- pledges to guide short-term forces were still receiving shipments an crude and condensate exports in the rates at -0.1% and the 10-year from the Islamic Republic at the time as coming months. More than 70% of that bond yield around 0% to achieve payment for weapons during the 1980- would likely be bought by Zhenrong, its elusive 2% infl ation target. 1988 Iran-Iraq war. the industry consultant said in a note. It introduced forward guid- In early-2012, when the Obama ad- Announcing the fresh sanctions on ance on rates in July 2018 and ministration placed a previous round Monday, US Secretary of State Michael modifi ed this in April. of sanctions on Iran, Zhenrong was Pompeo said they’d also be imposed The BoJ now pledges to keep targeted because of its involvement in a in 2015 when Tehran agreed to a deal 156,000 barrels a day of Iranian crude sition of crude oil from Iran” after re- on the company’s chief executive of- current ultra-low rates at least gasoline sale to the Gulf nation. over its nuclear program, but were re- in the fi rst fi ve months, compared with strictions were fully in place on May 2. fi cer, Li Youmin. Little is known about until around the spring of 2020. Zhenrong continued to import Irani- imposed by the Trump administration around 106,000 in 2018 and 157,000 What little else that is known about Li, too. She joined Zhuhai Zhenrong The BoJ’s rate review is an crude and fuel oil, despite the sanc- last year. In May, the US ended waiv- in 2017, according to estimates by in- Beijing-headquartered Zhenrong just after graduation, according to her pro- sandwiched between that of tions, ignoring eff orts by the US to re- ers that had allowed some countries, dustry consultant SIA Energy. When adds to the mystery that surrounds it. fi le page on the website of an alumni the ECB and the Federal Open strict dealings with the Opec producer including China, to keep buying some announcing the sanctions Monday, Even when it merged with another organisation of the China Europe In- Market Committee meeting and isolate the country over its nuclear Iranian crude. the state department said Zhenrong state-owned company, Nam Kwong ternational Business School in Shang- on July 30-31, when the Fed is ambitions. All the while, Zhenrong has kept “knowingly engaged in a signifi cant Group, in 2015, few details were made hai. She declined to comment when seen cutting rates at least 25 Sanctions against Iran were lifted buying. It imported an average of transaction for the purchase or acqui- public, apart from an offi cial statement reached by Bloomberg on Tuesday. basis points.

China soybean crushers in no rush to buy from US despite Beijing tariff offer: Sources

Reuters US agricultural products. But even without the extra tariffs, Beijing’s new plan came after Chinese the United States – about half of 2017’s tariff exemptions, who spoke on condi- Beijing There have been no signs of US US soybeans could not compete with state firms COFCO and Sinograin bought 32.9mn tonnes – as the tariffs on Ameri- tion of anonymity. China’s next steps soybean sales to China in recent weeks, Brazilian supplies on price until at least around 14mn tonnes of US soybeans fol- can cargoes cut into buying. on US soybean imports remain unclear, but in an apparent goodwill gesture October, based on current premiums lowing a truce agreed by leaders of the But China’s demand for soybeans but any large volume of purchases will Despite the carrot of a potential Chinese officials briefed private import- and margins, according to six traders two countries last December. crushed into livestock feed has also de- likely be tied to the US lifting sanctions exemption from import tariffs, Chinese ers last Friday on a plan to boost them, and analysts surveyed by Reuters, mak- Each of the five crushers asked to creased dramatically in recent months on Chinese tech giant Huawei Technolo- soybean crushers are unlikely to buy according to three people familiar with ing immediate orders unlikely. take part in the new plan was given a as African Swine Fever swept across the gies, two analysts suggested. in bulk from the United States any time the matter. “It is hard to see buying of large US quota separately, with the total volume country, resulting in the death or culling “How many US soybeans China will soon as they grapple with poor margins These and other people interviewed shipments (for delivery to China) for of this batch of extra tariff-free imports of millions of pigs. buy, and for how long, depends on how and longer-term doubts about Sino-US by Reuters on the subject declined to the time being,” said Li Qiang, chief estimated at around 2mn-3mn tonnes, While COFCO and Sinograin bought much the US will adjust its policies on trade relations, people familiar with the be named due to the sensitivity of the analyst with Shanghai JC Intelligence according to one person with knowl- US soybeans on government orders, companies like Huawei,” said Li, the matter said. issue. Co Ltd. edge of the plan. the Chinese sources said, the five Shanghai JC Intelligence analyst. China imposed a 25% tariff on US soy According to one of the sources, a China’s National Development and Earlier this week US Agriculture private importers at the meeting make Washington banned American imports last year as Washington-Beijing group of five crushers were told by Reform Commission, the state planning Secretary Sonny Perdue said China had buying decisions based on commercial companies from selling most US parts trade disagreements boiled over into tit- China’s state planner that they could ap- agency that organised the Friday meet- commitments to buy 20mn tonnes of interests – mainly crush margins – which and components to Huawei without for-tat levies on each other’s goods. ply for exemptions from the 25% tariffs ing, did not respond to a fax seeking soybeans, though he did not specify a don’t favour immediate buying. special licences, citing national security That blow was felt on both sides of on some US soybean cargoes arriving comment. timeframe. Data shows crushers in Rizhao, a concerns. the Pacific: China was the top buyer of before the end of December. Yihai Kerry, Jiusan, Bohi declined to “Some of that materialised but not major hub for soybean imports in But Trump said last month that sales US soybeans. The source said the group included comment, while China Sea could not be enough and we hold them accountable northern China, currently lose 133 yuan could resume as he sought to restart A warming of relations led to hopes Yihai Kerry, owned by Singapore-based reached for comment. for that,” Perdue said. “I think the latest ($19.33) for every tonne of the oilseed trade talks with Beijing. in the soy trade that the situation might Wilmar International, state-owned A staff in the public relations depart- numbers I saw this week, we were up to they process. The Trump administration said yester- improve: After talks last month, US Jiusan Group, and privately owned ment at Hopefull and a manager from 13.67mn tonnes if I recall correctly, so “We are not in shortage of beans for day that it plans to handle applications President Donald Trump said he had Shandong Bohi Industry Co, Hopefull the company’s international trade they still have a ways to go.” August and September, but it is hard from tech companies seeking waivers agreed not to impose new tariffs on Chi- Grain & Oil, and China Sea Grains & Oils division said they were not aware of the For the whole of 2018, China im- to say about future months,” said a over Huawei blacklisting within the next nese goods – if China purchased more Industry. matter. ported 16.6mn tonnes of soybeans from manager at a crusher eligible for the few weeks. Gulf Times Thursday, July 25, 2019 5 BUSINESS

Australian regulator raps 3 banks for Philippines’ Jollibee buys breach of liquidity norms

Reuters Sydney

Australia’s banking regulator Coff ee Bean & Tea Leaf said yesterday it has ordered Macquarie Group Ltd and the Reuters domestic units of Rabobank Manila and HSBC to tighten their local funding arrangements, saying the banks had breached liquid- ollibee Foods Corp, Philippines’ ity reporting requirements. largest food service network opera- Following recent prom- Jtor, is buying US brand Coff ee Bean ises to take a tougher stance & Tea Leaf (CBTL) for $100mn as part of toward the banks it regulates, an expansion outside its home market. the Australian Prudential Jollibee, which has a market value of Regulation Authority (APRA) nearly $5.5bn, is buying loss-making broke its tradition of not CBTL from private equity fi rm Ad- publicly naming entities, and vent International and other investors said the three banks were including the Sassoon family, a large “improperly reporting the shareholder in CBTL. stability of the funding they Los Angeles-based CBTL has 1,189 received from other entities outlets spread across the United States, within the group.” Southeast Asia and the Middle East, The regulator said the banks and is rapidly growing in Asia. had provisions in their funding Nearly three-fourths of its outlets are agreements that would poten- franchised. tially allow the group funding Jollibee will invest $100mn for an to be withdrawn in a stress sce- 80% share in a Singapore holding com- nario, undermining the stability pany that will acquire CBTL. of the Australian units. The remaining 20% stake will be The “reporting of their intra- owned by Jollibee’s partner in its Viet- group funding as stable has nam coff ee and restaurant business. been in breach” of regulatory As part of the transaction, Jollibee standards, APRA said. will fork out another $250mn, a por- “APRA is requiring these tion of which was allotted to pay CBTL’s banks to strengthen intra- debt. group agreements to ensure The amount will be paid back by the term funding cannot be holding company. withdrawn in a financial stress “The acquisition of Coff ee Bean & scenario,” APRA said. Tea Leaf will be Jollibee’s largest and The regulator was “consider- most multinational so far with busi- ing a range of further options, ness presence in 27 countries,” Jollibee including the imposition of chairman Tony Tan Caktiong said in a higher funding and liquidity statement yesterday. requirements.” The deal allows Jollibee to be a key APRA gave no further details player in the large, fast-growing and of the required strengthening, profi table coff ee business, said Tan The first Jollibee restaurant in the UK is seen in London. Jollibee believes higher income in the Philippines will support spending on higher-end products like specialty but did say it would require the Caktiong, adding that the priority is to coff ee, said Ramos, who helps manage 30bn pesos ($585.94mn). lenders to re-state past funding accelerate Coff ee Bean’s growth in Asia. and liquidity ratios. The acquisition will add 14% to Jol- offi cer of Eastwest Bank in Manila. Jol- Shares in Jollibee fell 8% yesterday, Jollibee is dominant in the Philippines, ing overseas, including in China and the Macquarie said intra-group libee’s global system-wide sales and libee believes higher income in the Phil- their biggest daily drop in nearly three outselling McDonald’s and Yum Brands’ United States, by investing in restaurant loans to its banking unit repre- 26% to its total store network, he said. ippines will support spending on high- years, which Ramos attributed to the KFC. It operates the largest fast-food chains catering to local tastes. sented up to 15% of its bank’s “They really want to diversify their er-end products like specialty coff ee, spending the company will be making. chain in the Southeast Asian nation CBTL posted $312.95mn in revenues total funding, the repayment income stream. At the same time it is said Ramos, who helps manage 30bn The broader Philippine index closed with 3,195 restaurants. and $21mn in net losses last year. of which could be accelerated a business they know,” said Robert Ra- pesos ($585.94mn), including an index 1.1 lower. Known for its sweet-style Jollibee also has 1,418 stores across It had debt of $83.56mn as of end- due to a “material adverse mos, senior vice-president and trust fund that holds Jollibee shares. spaghetti, burgers and fried chicken, various brands overseas. It is expand- 2018. change” (MAC) clause that existed since 2007. That clause had now been removed, and the bank would re-calculate its liquidity ratios back to 2017, to reflect the previous clauses, Macquarie Pakistan’s last fi scal budget defi cit may touch $20.63bn said. “It is likely that (Macquarie Internews as to how the government will make deficit. According to the State Bank more than 8 per cent of GDP for end target of Rs4,150bn, thus showing a Bank’s) recalculated liquidity Islamabad adjustments of 2.8% of GDP to bring of Pakistan (SBP), the total bank bor- June 2019 but the final figure of fis- shortfall of Rs318bn or close to 1% of coverage ratios will show a down the primary defi cit at 0.6%. rowing by the government in 2018-19 cal operation will be released after 45 GDP. The non-tax revenue target was historical non-compliance,” the Secondly, the ministry of fi nance is Rs2,182bn, with Rs2,937bn from days of compilation of accounts,” top facing also some problems, so the re- firm said. It said if the unit had he initial estimates for fi s- made wrong projections before the the SBP and retirement of debt with official sources confirmed and added vised estimates may not be material- been “aware of APRA’s inter- cal year 2018-19 under fi rst parliament in fourth consecutive year. the commercial banks of Rs755bn. that the government would release ised. pretation of the MAC clause, Tyear rule of the PTI suggest When contacted, former fi nance External borrowing up to May 2019 official figures of budget deficit by The expenditure side also wit- they would have removed the that Pakistan’s budget defi cit is go- minister and renowned economist Dr is estimated at Rs535bn while the mid-August 2019. nessed some pressures so the budget clause earlier”. ing to witness new heights of touch- Hafeez A Pasha said that the budget magnitude of non-bank borrowing is The revenue estimates of the FBR deficit is all set to exceed Rs3,300bn In a statement, HSBC said it ing Rs3,300bn ($20.63bn), one of the defi cit would be climbing to 8.6% of Rs626bn, also up to May 2019. and non-tax revenue estimates are for the last financial year. maintained a strong liquidity highest ever absolute fi gure in whole GDP for the last fi scal year 2018-19 Therefore, the total borrowing ag- in the process of reconciliation with However, Minister of State for and funding position, without history of Pakistan. against revised estimates of 7.2% of gregates to at least Rs3,343bn. the AGPR and then the external data Economic Affairs Division Hammad elaborating on what led APRA This budget defi cit exceeding GDP for this period. The bottom line is that the budget will be made available by Economic Azhar stated in his tweet that net in- to say the lender had improp- Rs3,300bn or 8.5% of Gross Domestic However, it appears to have been deficit in 2018-19 is above 8.6% of Affairs Division (EAD) in next two crease in External Public Debt Stock erly reported its liquidity ratios. Product (GDP) will have far-reaching significantly understated by the min- the GDP, he stated and added that the weeks. of Pakistan in FY18-19 was approxi- Rabobank said it was work- negative impact for the fi scal adjust- istry of finance, he said and added target was 5.1% of the GDP for the last Finally, the SBP data will be avail- mately $2.5bn versus $8.6bn in previ- ing with the regulator to ad- ments under $6bn IMF programme. that they were doing the same prac- fiscal year. able after reconciliation and the min- ous year. dress its concerns, and would The primary defi cit has been esti- tice from last four consecutive years. The actual deficit has exceeded the istry will be able to post it out through Net increase in total external debt amend its funding agreements mated at negative 3.4% of GDP and An alternative approach has been target deficit by as much as Rs964bn. release of fiscal operation within the and liabilities stood at $10bn in FY18- with its parent. Pakistan will have to bring it at nega- adopted for quantification of the This reflects poorly on the quality envisaged limit of 45 days. 19 vs $13.3bn in previous year. APRA said there was no im- tive 0.6% of GDP in line with IMF deficit involving the determination of financial management by the min- One of the top official said that The external debt repayment + mediate threat to the stability agreement. of the borrowing by the government istry of finance, he maintained. the FBR’s revenue collection stood at servicing consumed $9.1bn in FY18- of the three lenders. Pakistani authorities are clueless from different sources to finance the “The budget deficit is estimated at Rs3,832-Rs3,842bn against revised 19 versus $5.8bn in previous year. ‘One-trick pony’? Australian exports zoom despite global trade war

Reuters tourism are major attractions too. by expectations that interest rates in Aus- Sydney/Melbourne Australian exports aimed solely at tralia will stay low for a long time to come Chinese domestic consumption have after the RBA cut rates twice since June to been rising. a record low 1% and as miners have so far Most world economies from Germany to They now account for 5% of Australia’s held back from hefty capital works. Japan are bearing the brunt of an intermi- GDP, larger than the value added of the Some analysts see the Aussie sliding to nable US-China trade war but one country country’s retail industry at 4.6%, accord- $0.65 this year on expectations the RBA that has been insulated from the blow so ing to an analysis by Commonwealth will take interest rates deeper into record far is Australia, which is rolling in record Bank of Australia based on data from the territory, a move that would further sup- export dollars. Asian Development Bank. port export revenues. Iron ore prices are hitting new highs, Surprisingly, that demand is equally led The benefit of strong external demand yet the Aussie dollar is wallowing near by both mining and non-mining indus- and prices is not felt across the economy, recent lows while Chinese demand for tries, the analysis showed. though. Australian goods has remained strong, “Australia’s exports to China are much In the current cycle, global miners proving to be a triple bonanza for the deeper and wider than just exports of iron such as BHP Billiton are no longer seen A$1.9tn ($1.3tn) economy. ore to make steel for Chinese fixed invest- splurging. In 2018, exports of goods and services ment,” said Joseph Capurso, Sydney- They are hiring fewer people and dol- from Australia jumped 13% from 2017. based senior currency strategist at CBA. ing out smaller pay hikes, government In the five months to May, as the trade “We hope this goes some way to data shows. war intensified, they rose 15% from a year busting the myth that the Australia-China Capital spending by Australia’s top earlier. The export boom is providing trade relationship is a one-trick pony three iron ore miners had reached $45bn Australia’s newly re-elected government based on iron ore.” A third factor helping in 2011/12. with more fiscal firepower to prop up the Australia’s economy is a weaker Aussie It is now around $13bn. country’s struggling economy, which is dollar. Still, economists are hopeful exports expanding at its slowest pace since the The commodity-linked currency has will come to the rescue yet again. 2008 global financial crisis. A container ship is pushed to its berth by a tug at the Port of Melbourne. In 2018, exports of goods and services from been on a slippery slope for much of “More fiscal stimulus is likely to be It has also lifted the Reserve Bank of Australia jumped 13% from 2017. In the five months to May this year, as the trade war intensified, they rose 15% from a this year, boosting Australian exporters’ required and this will be made pos- Australia’s (RBA) confidence, with gover- year earlier. revenues. sible by stronger-than-expected tax nor Philip Lowe recently saying “a pickup It is currently trading around $0.7000, revenues on the back of the surging in the resources sector” was supporting “There are uncertainties around global A$2.9bn – the smallest since 1979. ary of a recent surge in prices of its top compared with around $0.90 during the iron ore price,” AMP economist Shane the economic outlook. trade, but Australia has been weather- This comes at a time when global export, iron ore, after a dam disaster in mining boom. The broken link between Oliver said. Exports account for about a quarter of ing the storm,” Felsman added. “The growth is slowing, hurt largely by the es- Brazil crimped global supply. soaring exports and the depreciating local “Ultimately the combination of rate gross domestic product (GDP). economy is in a slow lane but the support calating tariff dispute between the United Shanghai iron ore prices hit a 5-1/2 year dollar has led the government of Prime cuts, fiscal stimulus, the lower Aussie “Trade is a big support for the Aussie from trade is certainly helping.” States and China which has hit trade and, in peak of $126.5 earlier this month. Minister Scott Morrison to promise a budget dollar, infrastructure spending, stronger economy,” said Sydney-based CommSec Indeed, a series of record trade sur- turn, business sentiment around the world. Iron ore’s share of Australia’s total surplus this year after a decade of shortfalls. mining investment and hopefully continu- economist Ryan Felsman, who expects pluses might even have gifted Australia ‘One-trick pony?’ exports to China is 43%. But China is also No fl ow ing solid export demand will see Australia Australia’s record stretch of 28 years of its first current account surplus in four a big buyer of Aussie coal and foods such avoid recession and growth pick up again recession-free growth to extend awhile. decades last quarter from a deficit of Australia has been the biggest benefici- as dairy and meat, while education and The Aussie dollar has been weighed sometime next year.” Gulf Times 6 Thursday, July 25, 2019 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 55.60 0.00 - Oman Packaging 0.27 0.00 - Al-Madar Finance & Invt Co 107.00 -1.83 164,589 Qurain Petrochemical Industr 351.00 -0.57 82,720 Oman Oil Marketing Company 1.07 0.00 - Gulf Petroleum Investment 21.90 -4.37 605,827 Advanced Technology Co 1,000.00 0.00 - Oman National Engineering An 0.13 0.00 - Mabanee Co Sakc 778.00 0.91 197,413 Ekttitab Holding Co Sak 14.80 2.07 90,000 Oman Investment & Finance 0.10 5.15 7,669,301 Inovest Co Bsc 71.90 0.00 - Real Estate Trade Centers Co 28.40 -0.35 11,100 Oman Intl Marketing 0.52 0.00 - Al-Deera Holding Co 12.60 0.00 - Acico Industries Co Kscc 147.00 8.89 522,539 Oman Flour Mills 0.64 0.63 30,750 Mena Real Estate Co 37.20 1.64 50,001 Kipco Asset Management Co 85.60 -3.93 108,579 Oman Fisheries Co 0.07 1.43 308,161 Amar Finance & Leasing Co 27.60 0.00 - National Petroleum Services 1,020.00 0.00 - Oman Europe Foods Industries 1.00 0.00 - United Projects For Aviation 440.00 10.83 83 Alimtiaz Investment Group 141.00 1.44 3,793,366 Oman Education & Training In 0.23 0.00 - National Consumer Holding Co 55.00 0.00 - Ras Al Khaimah White Cement 62.60 0.00 - Oman Chromite 3.64 0.00 - QATAR Amwal International Investme 55.00 0.00 - Kuwait Reinsurance Co Ksc 131.00 0.00 - Oman Chlorine 0.38 0.00 - Equipment Holding Co K.S.C.C 20.40 2.51 31,499 Kuwait & Gulf Link Transport 82.90 -0.96 203,610 Oman Ceramic Company 0.42 0.00 - Company Name Lt Price % Chg Volume Arkan Al Kuwait Real Estate 78.70 0.00 - Humansoft Holding Co Ksc 3,400.00 0.74 283,235 Oman Cement Co 0.21 0.00 - Gfh Financial Group Bsc 71.50 2.00 100,900 Automated Systems Co Kscc 82.00 0.00 - Oman Cables Industry 0.81 0.00 - Energy House Holding Co Kscp 24.50 0.00 2,750 Metal & Recycling Co -52.00 75 Oman & Emirates Inv(Om)50% 4.05 25,100 Zad Holding Co 13.00 0.00 - 24.00 0.08 Kuwait Co For Process Plant 212.00 0.00 - Gulf Franchising Holding Co 0.00 - Natl Aluminium Products 0.00 - Widam Food Co 6.29 0.32 56,804 70.00 0.31 Al Maidan Dental Clinic Co K 1,240.00 0.00 - Al-Enma’a Real Estate Co 0.00 376,419 National Real Estate Develop 0.00 - Vodafone Qatar 1.40 -0.71 2,264,950 41.50 5.00 National Shooting Company 12.40 0.81 4,000 National Mobile Telecommuni 1.25 136,041 National Mineral Water 0.00 - United Development Co 1.42 0.00 1,252,709 649.00 0.09 Al-Ahleia Insurance Co Sakp 420.00 0.00 - Sanad Holding Co Kscc 0.00 - National Life & General Insu 0.00 - Salam International Investme 0.41 -0.24 57,291 0.00 0.30 Wethaq Takaful Insurance Co 30.00 0.00 - Unicap Investment And Financ 1.07 1,147,206 National Gas Co 0.00 2,000 Qatar & Oman Investment Co 0.56 -0.53 5,880 47.30 0.15 Salbookh Trading Co Kscp 40.90 -0.24 129,100 Al Salam Group Holding Co -1.00 9,103,990 National Finance Co 0.00 - Qatar Navigation 6.60 -1.49 267,040 39.70 0.14 Aqar Real Estate Investments 80.20 0.00 - Al Aman Investment Company -0.66 119,000 National Detergent Co Saog 0.00 - Qatar National Cement Co 6.29 0.48 103,205 60.00 0.70 Hayat Communications 79.00 69.53 1,000 Mashaer Holding Co Ksc 1.72 345,595 National Biscuit Industries 0.00 - Qatar National Bank 19.35 0.68 2,169,187 71.00 3.92 Soor Fuel Marketing Co Ksc 120.00 -0.83 17,366 Manazel Holding 1.59 437,130 National Bank Of Oman Saog 0.00 - Qatar Islamic Insurance 5.74 -1.03 49,069 25.60 0.16 Tamkeen Holding Co 5.30 0.00 10,000 Tijara And Real Estate Inves 2.44 120,516 Muscat Thread Mills Co 0.00 - Qatar Industrial Manufactur 3.75 -0.27 69,554 42.00 0.08 Alargan International Real 176.00 0.00 - Jazeera Airways Co Ksc 0.11 220,005 Muscat Insurance Co Saog 0.00 - Qatar International Islamic 7.52 -0.40 578,306 950.00 0.81 Burgan Co For Well Drilling 89.10 0.00 10,100 Commercial Real Estate Co 0.85 184,139 Muscat Gases Company Saog 0.00 3,500 Qatari Investors Group 2.25 -0.44 154,799 94.60 0.16 Kuwait Resorts Co Kscc 53.20 0.19 20 National International Co -5.23 72,553 Muscat Finance 0.00 10,000 Qatar Islamic Bank 16.90 0.18 212,206 67.00 0.06 Oula Fuel Marketing Co 121.00 -0.82 226,094 Taameer Real Estate Invest C 0.00 2,922,460 Muscat City Desalination Co 0.00 - Qatar Gas Transport(Nakilat) 2.39 -0.42 4,515,799 23.00 0.10 Palms Agro Production Co 59.00 0.00 - Gulf Cement Co -4.46 138,482 Majan Glass Company 0.00 - Qatar General Insurance & Re 3.79 -2.82 43,968 60.00 0.18 Mubarrad Holding Co Ksc 62.30 2.13 20,147 Heavy Engineering And Ship B 0.25 931,117 Majan College 0.00 - Qatar German Co For Medical 0.73 -1.21 803,042 409.00 0.17 Shuaiba Industrial Co 149.00 0.00 - National Real Estate Co 0.24 210,460 Hsbc Bank Oman 0.88 16,620 Qatar Fuel Qsc 21.41 0.99 212,472 83.30 0.12 Aan Digital Services Co 12.40 -1.59 1,350,500 Al Safat Energy Holding Comp 1.90 111 Hotels Management Co Interna 0.00 - Qatar First Bank 0.40 0.00 4,465,347 21.40 1.25 First Takaful Insurance Co 39.00 8.03 18,000 Kuwait National Cinema Co 0.00 - Gulf Stone 0.00 - Qatar Electricity & Water Co 16.00 0.00 165,831 900.00 0.12 Kuwaiti Syrian Holding Co 42.70 6.75 201 Danah Alsafat Foodstuff Co -1.75 31,100 Gulf Mushroom Company 0.00 - Qatar Exchange Index Etf 10.39 0.00 - 28.00 0.31 National Cleaning Company 58.00 -1.69 5,000 Independent Petroleum Group 0.00 - Gulf Investments Services 1.32 3,316,996 Qatar Cinema & Film Distrib 2.15 0.00 - 469.00 0.08 United Real Estate Company 62.10 0.00 - Kuwait Real Estate Co Ksc -0.13 105,525 Gulf Invest. Serv. Pref-Shar 0.00 - Al Rayan Qatar Etf 2.38 0.00 - 78.90 0.11 Agility 795.00 1.02 1,272,839 Salhia Real Estate Co Ksc 0.00 10,200 Gulf International Chemicals 0.00 - Qatar Insurance Co 3.59 0.28 137,173 337.00 0.14 Kuwait & Middle East Fin Inv 47.00 6.09 6,563,348 Gulf Cable & Electrical Ind 2.53 234,174 Gulf Hotels (Oman) Co Ltd 0.00 - Qatar Aluminum Manufacturing 0.99 -0.20 1,639,720 446.00 9.50 Fujairah Cement Industries 55.00 1.85 20,100 Kuwait Finance House 0.52 4,061,099 Global Fin Investment 0.00 - Ooredoo Qpsc 6.95 1.76 292,205 766.00 0.07 Livestock Transport & Tradng 190.00 0.00 - Gulf North Africa Holding Co 2.93 2,259 Galfar Engineering&Contract 1.28 1,794,691 National Leasing 0.76 0.13 150,010 59.70 0.08 International Resorts Co 13.60 -18.56 8,030 Hilal Cement Co 0.00 - Galfar Engineering -Prefer 0.00 - Mazaya Qatar Real Estate Dev 0.80 0.63 932,917 100.10 0.39 National Industries Grp Hold 232.00 0.00 12,885,796 Osoul Investment Kscc 0.00 - Financial Services Co. 0.00 - Mesaieed Petrochemical Holdi 2.62 0.77 12,092,196 57.10 0.18 Warba Insurance Co 69.90 0.00 2,246 Gulf Insurance Group Ksc 0.00 - Financial Corp/The 0.00 - Al Meera Consumer Goods Co 14.44 0.49 150,236 610.00 0.10 First Dubai Real Estate Deve 28.50 -0.70 2,639 Umm Al Qaiwain General Inves 0.00 - Dhofar Tourism 0.00 - Medicare Group 7.88 -1.01 199,494 79.00 0.49 Al Arabi Group Holding Co 78.90 -0.13 110,300 Aayan Leasing & Investment 5.07 12,128,209 Dhofar Poultry 0.00 - Mannai Corporation Qsc 3.81 -0.26 50,653 53.90 0.18 Kuwait Hotels Sak 100.00 0.00 - Alrai Media Group Co Ksc -5.72 14,843 Dhofar Intl Development 0.00 - Masraf Al Rayan 3.90 0.52 4,035,757 31.30 0.30 Mobile Telecommunications Co 574.00 -0.17 2,072,048 National Investments Co 1.60 1,894,034 Dhofar Insurance 0.00 - Al Khalij Commercial Bank 1.17 0.00 410,652 127.00 0.17 Eff ect Real Estate Co 20.50 0.00 - Commercial Facilities Co -0.52 2,000 Dhofar Generating Co Saoc 0.00 - Industries Qatar 11.20 1.08 488,568 190.00 0.19 Tamdeen Real Estate Co Ksc 310.00 0.00 - Yiaco Medical Co. K.S.C.C 0.00 - Dhofar Fisheries & Food Indu 0.00 - Islamic Holding Group 2.45 -2.00 214,631 66.50 1.28 Al Mudon Intl Real Estate Co 17.70 2.31 259,700 Dulaqan Real Estate Co 0.00 - Dhofar Cattlefeed 0.00 - Investment Holding Group 0.58 1.75 1,391,332 350.00 0.14 Kuwait Cement Co Ksc 289.00 0.00 - Real Estate Asset Management -4.76 16,000 Dhofar Beverages Co 0.00 - Gulf Warehousing Company 4.97 -1.97 597,889 100.00 0.26 Sharjah Cement & Indus Devel 67.50 0.00 - Construction Materials Ind 0.00 131,416 Gulf International Services 1.78 -0.56 310,651 0.04 Kuwait Portland Cement Co 1,197.00 0.00 5,000 Computer Stationery Inds 0.00 - Ezdan Holding Group 0.71 -0.28 1,954,836 0.26 Educational Holding Group 320.00 0.00 - Bankmuscat Saog 0.49 624,127 Doha Insurance Co 1.16 -0.85 78,754 0.41 Bahrain Kuwait Insurance 200.00 0.00 - Bank Nizwa 1.19 50,208 Doha Bank Qpsc 2.70 0.00 2,771,444 0.09 Asiya Capital Investments Co 34.00 1.19 84,624 OMAN Bank Dhofar Saog -0.77 23,250 Dlala Holding 0.90 -0.66 500,711 0.13 Kuwait Investment Co 135.00 2.27 1,417,517 Arabia Falcon Insurance Co 0.00 - Commercial Bank Pqsc 4.60 -0.86 1,903,836 Company Name Lt Price % Chg Volume 0.10 Burgan Bank 345.00 -0.29 609,109 Aloula Co 0.00 - Barwa Real Estate Co 3.56 0.85 1,285,219 0.53 Kuwait Projects Co Holdings 222.00 0.00 386,164 Al-Omaniya Financial Service 0.10 0.00 - Al Khaleej Takaful Group 2.04 0.49 1,604,985 Voltamp Energy Saog 0.18 0.00 - Al Madina For Finance And In 17.20 -1.71 423,897 Al-Hassan Engineering Co 0.02 0.00 - Al Ahli Bank 0.80 0.38 5,182,852 Vision Insurance Saoc 0.11 0.00 - Kuwait Insurance Co 312.00 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 65.00 0.00 - Al-Anwar Ceramic Tiles Co 0.10 0.00 1,532,940 United Power Co Saog 2.50 0.00 - Intl Financial Advisors 19.90 -1.00 1,745,893 Al Suwadi Power 0.07 -4.11 181,152 United Finance Co 0.06 -8.82 24,848 KUWAIT First Investment Co Kscc 35.80 -0.83 2,185,620 Al Sharqiya Invest Holding 0.08 0.00 298,900 Ubar Hotels & Resorts 0.13 0.00 - Al Mal Investment Company 13.00 0.00 65,401 Al Maha Petroleum Products M 0.84 0.00 - Takaful Oman 0.13 0.00 - Company Name Lt Price % Chg Volume Bayan Investment Co Kscc 47.90 -0.21 45,000 Al Maha Ceramics Co Saoc 0.17 0.00 1,500 Taageer Finance 0.10 0.00 - Egypt Kuwait Holding Co Sae 416.00 0.00 - Al Madina Takaful Co Saoc 0.08 -1.23 319,990 Sultan Center Food Products 49.00 3.16 100 Sweets Of Oman 0.55 0.00 - Coast Investment Development 39.00 -0.76 1,088 Al Madina Investment Co 0.02 0.00 33,999 Kuwait Foundry Co Sak 256.00 0.00 125,600 Sohar Power Co 0.10 0.00 - Privatization Holding Compan 56.60 0.00 - Al Kamil Power Co 0.38 0.00 - Kuwait Financial Centre Sak 94.00 -0.95 625,807 Sohar International Bank 0.11 -0.93 144,290 Injazzat Real State Company 83.00 0.00 - Al Jazerah Services -Pfd 0.55 0.00 - Ajial Real Estate Entmt 130.00 0.00 12,500 Smn Power Holding Saog 0.08 0.00 - Kuwait Cable Vision Sak 22.10 0.00 - Al Jazeera Steel Products Co 0.23 0.00 - Kuwait Finance & Investment 37.50 0.00 96,020 Shell Oman Marketing - Pref 1.05 0.00 - Sanam Real Estate Co Kscc 45.00 0.00 - Al Jazeera Services 0.12 0.00 - National Industries Co Ksc 180.00 0.00 - Shell Oman Marketing 1.06 0.00 30 Ithmaar Holding Bsc 22.30 0.00 - Al Izz Islamic Bank 0.07 -2.74 59,056 Kuwait Real Estate Holding C 27.00 0.00 - Sharqiyah Desalination Co Sa 0.30 0.00 - Aviation Lease And Finance C 295.00 1.03 561,348 Al Buraimi Hotel 0.88 0.00 - Securities House/The 49.30 0.61 324,140 Sembcorp Salalah Power & Wat 0.11 0.00 - Arzan Financial Group For Fi 34.50 -1.15 1,423,271 Al Batinah Power 0.07 0.00 135,197 Boubyan Petrochemicals Co 905.00 0.11 28,020 Salalah Port Services 0.60 0.00 - Ajwan Gulf Real Estate Co 14.90 2.05 816,075 Al Batinah Hotels 1.13 0.00 - Al Ahli Bank Of Kuwait 318.00 0.32 13,641 Salalah Mills Co 0.57 0.00 - Kuwait Business Town Real Es 39.10 0.00 46,154 Al Batinah Dev & Inv 0.08 0.00 - Ahli United Bank (Almutahed) 343.00 0.29 167,318 Salalah Beach Resort Saog 1.38 0.00 - Future Kid Entertainment And 90.00 0.00 - Al Anwar Holdings Saog 0.10 -1.04 340,300 National Bank Of Kuwait 1,001.00 0.40 2,702,691 Sahara Hospitality 3.09 0.00 - Specialities Group Holding C 75.00 6.69 245,400 Al Ahlia Insurance Co Saoc 0.36 0.00 - Commercial Bank Of Kuwait 529.00 1.54 30,388 Renaissance Services Saog 0.32 0.00 2,000 Abyaar Real Eastate Developm 14.70 -0.68 974,760 Ahli Bank 0.11 0.90 63,545 Kuwait International Bank 276.00 1.47 1,148,292 Raysut Cement Co 0.33 -3.51 99,909 Dar Al Thuraya Real Estate C 179.00 0.00 - Acwa Power Barka Saog 0.66 0.00 - Gulf Bank 314.00 0.96 5,435,575 Phoenix Power Co Saoc 0.08 -5.95 17,651 Kgl Logistics Company Kscc 41.70 -0.48 1,981,440 Abrasives Manufacturing Co S 0.05 0.00 - Al-Massaleh Real Estate Co 38.10 0.00 - Packaging Co Ltd 2.21 0.00 - Combined Group Contracting 245.00 2.94 2,237,823 A’saff a Foods Saog 0.60 0.00 - Al Arabiya Real Estate Co 28.20 -2.08 1,037,584 Ooredoo 0.47 0.00 46,174 Jiyad Holding Co Ksc 46.40 1.98 161,504 0Man Oil Marketing Co-Pref 0.25 0.00 - Kuwait Remal Real Estate Co 31.00 19.23 2,515,818 Ominvest 0.34 0.00 50 Warba Capital Holding Co 79.00 -1.13 52,300 #N/A Invalid Security 0.00 0.00 - Alkout Industrial Projects C 840.00 0.00 - Oman United Insurance Co 0.17 -2.34 9,766 Gulf Investment House Ksc 53.30 -0.37 68,701 #N/A Invalid Security 0.00 0.00 - Oman Telecommunications Co 0.54 1.51 173,140 A’ayan Real Estate Co Sak 59.90 0.00 - Boubyan Bank K.S.C 593.00 -0.17 122,092 Oman Refreshment Co 1.47 0.00 - Investors Holding Group Co.K 10.10 1.00 655,249 Ahli United Bank B.S.C 277.00 0.00 10,917,763 Oman Qatar Insurance Co 0.10 0.00 - Al-Mazaya Holding Co 56.30 -0.18 106,241 Osos Holding Group Co 100.00 0.00 - LATEST MARKET CLOSING FIGURES

Deutsche Bank stumbles to big China’s SDIC hires banks for $1bn London IPO

Reuters plants, has a presence in Brit- loss on road to reinvention ain through its ownership of Hong Kong/London Red Rock Power, a Scotland- Reuters the division’s performance, based wind farm operator. Frankfurt Sewing told analysts. hina’s state-backed It is also involved in other But “this simply doesn’t mat- energy fi rm SDIC Pow- alternative energy generation ter. We must do better and we Cer Holdings has hired a such as hydropower, thermal, eutsche Bank reported will do better.” pool of three banks to list in wind and photovoltaic. a bigger than forecast RBC Capital Markets wrote London via the newly-minted On July 3, SDIC said its Dquarterly loss of €3.15bn that Deutsche’s earnings illus- Stock Connect scheme, three board approved a resolution ($3.5bn), underlining the chal- trated the “long road until we sources told Reuters, a boost to sell its GDRs in London. lenges faced by chief executive have visibility on the many step- for Britain’s status as a fi nan- Last month, Chinese bro- Christian Sewing as he attempts ping stones” to a turnaround. cial centre ahead of Brexit. kerage Huatai Securities be- to turn around the struggling Among details of the overhaul Goldman Sachs, HSBC and came the fi rst company to list business. announced earlier this month, UBS are leading the transac- in London under the much- Germany’s largest bank had Deutsche said it planned to scrap tion as global coordinators, anticipated Stock Connect already fl agged it would lose its global equities business and two of the sources said, which link with the Shanghai ex- around €2.8bn in the quarter scale back its investment bank. could be launched in the sec- change. when it announced a restructur- It also reshuffl ed manage- ond half of this year depend- There have been concerns ing plan that will see 18,000 jobs ment. ing on market conditions. that not many companies go and cost €7.4bn overall. The bank will set up a new so- SDIC Power, with a mar- would follow Huatai to Lon- The size of the loss, com- called “bad bank” to wind down ket value of 57bn renminbi don, but one of the sources pared with a profi t of €401mn unwanted assets, with a value of ($8.3bn) in Shanghai, is look- said at least three or four Chi- a year ago, prompted the bank’s €74bn of risk-weighted assets. ing to raise between $500mn nese companies have sent out shares to slide as much as 5.8% in Reuters reported on Tuesday and $1bn from the sale of “requests for proposals” to Frankfurt before regaining some that it will take years to shed Global Depositary Receipts law fi rms and banks who may ground. those unwanted assets, tying up (GDRs) on the London Stock be interested in advisory roles The bigger loss stemmed from capital that could have generated Exchange, one of the sources on listings. higher goodwill impairment income of €500mn a year. said. The source also said SDIC’s charges than foreseen when the The headquarters of Deutsche Bank is seen in Frankfurt. The bank’s troubles peaked with a $7.2bn US fine Preparations to auction un- SDIC did not immediately plans are the most advanced bank announced its restructur- in 2017 for its role in the mortgage market crisis, in a major blow that caused clients to flee. wanted equity derivatives are respond to an e-mailed re- as the company has obtained ing on July 7. “well advanced”, the bank’s fi - quest for comment outside board approval for the listing As it reshapes, the bank ex- by losses and scandal, prompting the bank’s future that spooked “tough cutbacks” to its invest- nance chief told analysts. of regular business hours in and appointed banks to han- pects to post a loss in 2019, it to embark on one of the biggest clients. ment bank, representing a major Some investors have said they China. dle the process. meaning that it will have been overhauls to an investment bank “Now we can look ahead with retreat from investment bank- doubted these moves would be Goldman Sachs and UBS Under the London-Shang- in the red for four out of the past since the aftermath of the fi nan- more optimism,” he wrote. ing for Deutsche Bank, which for enough to turn around its fl ag- declined to comment while hai Stock Connect scheme, fi ve years. cial crisis. Deutsche’s troubles peaked years had tried to compete as a ging fortunes in the face of in- HSBC was not available to Chinese companies can list But it is aiming for profi t in CEO Sewing said on Wednes- with a $7.2bn US fi ne in 2017 for major force on Wall Street. tense competition and low inter- comment. depositary receipts pegged to 2020. day that the bank had already its role in the mortgage mar- Net revenue in the quarter fell est rates. China’s State Development their Shanghai-listed shares, The bank also anticipates 2019 taken signifi cant steps in imple- ket crisis, in a major blow that 6% to €6.2bn. Others investors have said they & Investment Corp has a 49.1% while British companies can revenue to be lower than in 2018. menting the strategy. caused clients to fl ee. Revenue at Deutsche’s cash- were worried Deutsche Bank stake in the company, while issue shares on the Shanghai That forecast marks a further More than 900 employees had A new leadership, with Sew- cow bond-trading division would backtrack on a pledge not another 36.8% is listed on the Stock Exchange. scaling down in expectations given notice or been told they ing at the helm since last year, dropped 4% in the quarter, while to tap shareholders for additional Shanghai Stock Exchange, ac- Talks on the Stock Con- from previous quarters. would be made redundant from has tried to revive Deutsche’s equities sales and trading rev- cash, particularly in view of its cording to Refi nitiv data. nect scheme began in 2015, Founded in 1870, the bank is a bank that had around 91,500 fortunes, but problems have per- enue dived 32%. capital constraints. SDIC’s second biggest but it went live only this year, considered one of the most im- employees. sisted. The declines underscore the “I really can’t say that I see the shareholder, China Yangtze coinciding with Britain’s ef- portant for the global fi nancial In a note to staff , Sewing said In April, the bank called off continued weakness at the lend- positives in this plan. I remain a Power Co – which has a 7.79% forts to strengthen ties with system, along with US heavy- that the lender’s underper- nearly six weeks of talks to merge er’s investment bank, which saw bitter curmudgeon,” said Bar- stake – is also state-owned. non-European countries in weights JPMorgan Chase, Bank forming investment bank faced with cross-town rival Commerz- an 18% drop in net revenues dur- rington Pitt-Miller, portfolio The company, which focus- fi nancial services to make up of America and Citigroup. “strong headwinds” in the quar- bank. ing the period. manager at Janus Henderson In- es on investing, constructing for potential loss of business But Deutsche has been plagued ter, including questions about It then embarked on a plan for “I could make excuses,” about vestors. and operating electric power from Brexit. Gulf Times Thursday, July 25, 2019 7 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 27,220.08 -129.11 Apple Inc 207.77 -0.51 1,544,521 S&P 500 Index 3,004.65 -0.82 American Express Co 127.50 -0.55 261,126 Nasdaq Composite Index 8,268.36 +16.96 Boeing Co/The 362.75 -2.77 491,874 S&P/Tsx Composite Index 16,553.96 -18.73 Caterpillar Inc 132.61 -3.98 1,044,311 Mexico Bolsa Index 41,255.13 +319.79 Cisco Systems Inc 57.29 -0.73 1,307,868 Brazil Bovespa Stock Idx 104,298.40 +594.10 Chevron Corp 126.32 0.40 427,168 Ftse 100 Index 7,501.46 -55.40 Walt Disney Co/The 140.93 -0.23 409,396 Cac 40 Index 5,605.87 -12.29 Dowdupont Inc 0.00 0.00 - Dax Index 12,522.89 +32.15 Goldman Sachs Group Inc 220.21 0.35 191,823 Ibex 35 Tr 9,329.70 +48.10 Home Depot Inc 214.11 0.48 131,837 Nikkei 225 21,709.57 +88.69 Intl Business Machines Corp 149.69 -0.46 234,409 Japan Topix 1,575.09 +6.27 Intel Corp 52.59 1.62 2,185,857 Hang Seng Index 28,524.04 +57.56 Johnson & Johnson 129.17 0.26 555,982 All Ordinaries Indx 6,862.39 +49.91 Jpmorgan Chase & Co 116.56 0.17 795,896 Nzx All Index 1,835.08 -9.10 Coca-Cola Co/The 54.13 -0.37 1,338,116 Bse Sensex 30 Index 37,847.65 -135.09 Mcdonald’s Corp 213.06 -0.58 191,344 Nse S&P Cnx Nifty Index 11,271.30 -59.75 3M Co 179.08 0.88 193,617 Straits Times Index 3,368.44 -4.69 Merck & Co. Inc. 81.77 -0.32 534,765 Karachi All Share Index 23,689.71 -206.77 Microsoft Corp 139.81 0.37 1,923,602 Jakarta Composite Index 6,384.99 -18.82 Nike Inc -Cl B 86.53 -0.20 392,075 Pfizer Inc 42.69 -0.94 1,254,778 Procter & Gamble Co/The 112.76 -0.96 1,096,213 Travelers Cos Inc/The 147.77 0.18 103,002 TOKYO Unitedhealth Group Inc 251.53 -1.36 361,333 United Technologies Corp 135.23 0.21 206,603 Company Name Lt Price % Chg Volume Visa Inc-Class A Shares 180.42 -0.27 477,316 Nidec Corp 14,215.00 0.82 1,085,100 Verizon Communications Inc 55.48 0.00 863,270 Isuzu Motors Ltd 1,237.00 1.02 1,855,600 Walgreens Boots Alliance Inc 54.30 -0.65 377,067 Unicharm Corp 3,219.00 1.29 1,013,300 Walmart Inc 112.43 0.30 306,863 Nomura Holdings Inc 359.70 -0.96 12,410,600 Exxon Mobil Corp 75.67 0.40 559,522 Daiichi Sankyo Co Ltd 6,215.00 -0.64 923,100 Subaru Corp 2,681.00 0.06 1,616,100 Sumitomo Realty & Developmen 3,973.00 -1.37 1,063,700 FTSE 100 Ntt Docomo Inc 2,648.50 0.17 3,192,800 Sumitomo Metal Mining Co Ltd 3,260.00 -0.28 1,096,200 Company Name Lt Price % Chg Volume Orix Corp 1,668.00 0.39 2,661,900 Asahi Group Holdings Ltd 4,710.00 0.23 2,164,600 Anglo American Plc 2,187.00 -3.25 4,072,102 Keyence Corp 66,920.00 0.84 239,600 Associated British Foods Plc 2,393.00 1.83 1,167,087 Mizuho Financial Group Inc 158.00 0.00 66,160,400 Admiral Group Plc 2,221.00 -1.60 672,710 Sumitomo Mitsui Trust Holdin 3,900.00 0.65 881,100 Ashtead Group Plc 2,250.00 0.18 908,648 Japan Tobacco Inc 2,439.50 0.02 2,483,100 Antofagasta Plc 954.00 0.85 2,296,588 Sumitomo Electric Industries 1,399.00 0.29 1,532,300 Auto Trader Group Plc 535.60 0.79 3,930,685 Daiwa Securities Group Inc 477.40 -0.06 4,251,200 Aviva Plc 414.20 -0.93 7,609,623 Softbank Group Corp 5,505.00 1.01 17,399,500 Astrazeneca Plc 6,359.00 -1.62 1,980,466 Panasonic Corp 916.90 -0.42 4,907,900 Bae Systems Plc 532.80 0.41 5,012,224 Fujitsu Ltd 7,861.00 0.94 763,900 Barclays Plc 159.92 -0.11 20,559,697 Central Japan Railway Co 22,030.00 -0.11 373,500 British American Tobacco Plc 3,020.50 -1.42 2,516,881 Nitori Holdings Co Ltd 14,615.00 1.85 415,300 Barratt Developments Plc 653.80 1.27 3,783,893 Ajinomoto Co Inc 1,810.00 0.61 1,120,100 Bhp Group Plc 1,960.80 -4.00 6,580,647 Daikin Industries Ltd 13,680.00 -0.69 659,200 Berkeley Group Holdings/The 3,855.00 1.90 581,363 Mitsui Fudosan Co Ltd 2,481.50 -0.52 2,768,300 British Land Co Plc 542.20 1.27 3,337,043 Ono Pharmaceutical Co Ltd 1,954.50 0.15 874,900 Bunzl Plc 2,157.00 -1.19 488,175 Toray Industries Inc 790.70 0.19 5,363,700 Bp Plc 523.50 -0.72 24,838,129 Bridgestone Corp 4,232.00 0.19 1,502,800 Burberry Group Plc 2,251.00 -2.22 1,594,189 Sony Corp 5,955.00 1.76 5,725,300 Bt Group Plc 189.84 -0.13 12,026,731 Astellas Pharma Inc 1,540.00 -1.19 4,348,500 Coca-Cola Hbc Ag-Di 2,741.00 -0.54 487,083 A visitor looks at a ticker of share prices at the London Stock Exchange (file). The FTSE 100 closed down 0.7% to 7,501.46 Hoya Corp 8,365.00 2.55 1,331,900 Carnival Plc 3,569.00 0.11 395,324 Nippon Steel Corp 1,760.00 -0.71 2,801,500 points yesterday. Centrica Plc 89.00 -0.04 17,292,897 Suzuki Motor Corp 4,540.00 0.46 1,552,800 Compass Group Plc 1,964.50 0.00 2,451,196 Nippon Telegraph & Telephone 5,140.00 0.78 3,278,500 Croda International Plc 4,662.00 -3.40 1,018,885 Jxtg Holdings Inc 525.60 1.55 13,630,800 Crh Plc 2,628.00 -0.53 872,934 Murata Manufacturing Co Ltd 4,952.00 3.17 6,954,900 Dcc Plc 6,822.00 0.80 130,376 Kansai Electric Power Co Inc 1,231.00 -1.36 1,757,900 Diageo Plc 3,353.50 -1.58 3,306,985 Denso Corp 4,930.00 2.01 2,417,300 Direct Line Insurance Group 331.00 -0.54 2,479,503 Sompo Holdings Inc 4,432.00 -1.05 827,300 Europe’s major markets end Evraz Plc 653.60 -2.68 2,156,499 Daiwa House Industry Co Ltd 3,125.00 -1.20 1,421,400 Experian Plc 2,452.00 0.91 1,298,383 Dai-Ichi Life Holdings Inc 1,600.00 -0.03 2,499,300 Easyjet Plc 1,094.50 -1.66 1,633,971 Mazda Motor Corp 1,110.00 0.54 2,173,000 Ferguson Plc 5,982.00 -0.50 626,597 Komatsu Ltd 2,501.50 -0.02 2,938,000 Fresnillo Plc 782.60 -0.51 1,251,281 West Japan Railway Co 8,853.00 0.17 315,500 Glencore Plc 277.30 0.64 29,224,871 mixed; pound gains ground Kao Corp 8,273.00 0.49 840,400 Glaxosmithkline Plc 1,653.60 -0.42 7,809,022 Mitsui & Co Ltd 1,793.00 -0.22 2,678,100 Gvc Holdings Plc 631.00 -0.66 2,067,764 Daito Trust Construct Co Ltd 14,385.00 0.28 208,100 Hikma Pharmaceuticals Plc 1,804.50 0.39 471,362 Otsuka Holdings Co Ltd 3,906.00 0.21 1,142,500 Hargreaves Lansdown Plc 2,100.00 0.38 688,481 Oriental Land Co Ltd 14,030.00 -0.07 363,100 as Johnson takes offi ce Halma Plc 2,005.00 0.38 812,302 Sekisui House Ltd 1,893.00 -0.32 1,561,100 Hsbc Holdings Plc 656.40 -2.16 24,078,862 Secom Co Ltd 8,695.00 0.30 393,900 Hiscox Ltd 1,735.00 0.12 520,731 Tokio Marine Holdings Inc 5,766.00 -0.21 1,112,100 Intl Consolidated Airline-Di 454.70 0.20 3,701,149 and Glencore,” noted CMC Markets surprise decision to hit China with Aeon Co Ltd 1,881.00 -0.03 1,423,400 AFP Intercontinental Hotels Grou 5,530.00 0.40 281,877 analyst David Madden. more tariffs for what he called Bei- Asahi Kasei Corp 1,137.00 0.31 2,201,400 London 3I Group Plc 1,134.00 1.16 1,324,870 “Brazil’s Vale won approval to restart jing’s backsliding. Kirin Holdings Co Ltd 2,370.00 0.89 2,272,800 Imperial Brands Plc 2,135.50 0.64 1,926,660 Marubeni Corp 725.40 0.61 4,113,700 iron ore production, and that triggered But US markets were lower in mid- Informa Plc 881.00 6.53 3,683,535 Mitsubishi Ufj Financial Gro 529.20 0.38 36,631,700 he British pound gained ground the drop in iron ore prices.” day trading Thursday as investors Intertek Group Plc 5,652.00 1.22 207,382 Mitsubishi Chemical Holdings 746.10 0.48 3,599,200 yesterday as Boris Johnson took Gloomy data on eurozone business turned their attention to a US govern- Itv Plc 113.25 6.59 21,672,702 Fanuc Corp 19,875.00 2.00 878,400 over as prime minister, while activity dampened sentiment as well. ment investigation into top tech fi rms, Johnson Matthey Plc 3,184.00 -0.19 726,712 T Fast Retailing Co Ltd 67,910.00 -0.43 541,200 Kingfisher Plc 221.70 -0.63 5,360,704 European stocks were mixed amid “The manufacturing sector has be- with the Dow off 0.5%. Ms&Ad Insurance Group Holdin 3,628.00 0.11 1,159,800 Land Securities Group Plc 844.20 0.60 1,366,248 weakness in the mining sector. come an increasing cause for concern,” The Justice Department said it Kubota Corp 1,698.50 0.35 2,040,600 Legal & General Group Plc 269.30 -0.04 9,131,423 Seven & I Holdings Co Ltd 3,750.00 0.59 1,756,400 Sterling climbed versus the euro and commented Chris Williamson, an IHS would begin an antitrust review of Lloyds Banking Group Plc 56.97 -0.05 138,988,436 Inpex Corp 979.90 1.75 3,598,900 dollar as traders watched Johnson — a Markit economist after the group said major online platforms to determine London Stock Exchange Group 5,628.00 -0.18 460,599 Resona Holdings Inc 449.90 0.33 5,765,600 leading Leave campaigner in Britain’s its composite eurozone PMI (purchas- if they have “stifl ed” innovation or Micro Focus International 1,700.00 1.35 1,481,013 Fujifilm Holdings Corp 5,347.00 -0.91 1,110,400 reduced competition, and while it did Marks & Spencer Group Plc 211.70 2.47 7,743,023 shock Brexit referendum three years ing managers index) fell to 51.5 points Yamato Holdings Co Ltd 2,198.00 -0.29 788,900 Mondi Plc 1,845.50 1.35 1,827,204 ago — issued an exuberant call to arms in July from 52.2 in June. not name specifi c fi rms, it appears Chubu Electric Power Co Inc 1,476.00 0.10 1,383,100 Melrose Industries Plc 196.20 1.71 10,495,533 from in front of the premier’s residence A reading above 50 points indicates Google, Facebook, Amazon and Apple Mitsubishi Estate Co Ltd 1,999.00 -0.57 2,306,700 Wm Morrison Supermarkets 201.40 -1.56 12,132,583 at 10 Downing Street. an expansion, but the long-term trend are in the crosshairs. Mitsubishi Heavy Industries 4,656.00 0.52 936,300 National Grid Plc 840.70 -0.15 4,640,146 Sysmex Corp 7,297.00 -1.72 350,300 Investors are keen to see whether he appears to be heading towards stagna- “In other words, it will focus on Nmc Health Plc 2,479.00 2.44 383,766 Shiseido Co Ltd 8,097.00 0.36 1,202,700 pushes ahead and takes Britain out of tion. some of the biggest, most successful, Next Plc 5,658.00 3.59 412,820 Shionogi & Co Ltd 6,195.00 -1.05 813,300 the European Union at the end of Oc- Worse still, a sub index for manufac- and widely-held, stocks in the land,” Ocado Group Plc 1,211.00 0.62 1,121,146 Terumo Corp 3,130.00 0.42 1,301,000 Paddy Power Betfair Plc 0.00 0.00 - tober, which he has repeatedly pledged turing fell to 46.4 points — a 79-month said market analyst Patrick O’Hare at Tokyo Gas Co Ltd 2,652.50 -0.47 1,505,100 Prudential Plc 1,718.00 -0.98 3,269,313 to do, “no ifs or buts”. low. Briefi ng.com. Tokyo Electron Ltd 17,900.00 0.59 2,237,700 Persimmon Plc 2,065.00 1.92 1,834,747 “The pound is beginning to stabilise, Most Asian markets had enjoyed an- Separately, US regulators yesterday East Japan Railway Co 9,896.00 -0.67 743,700 Pearson Plc 879.40 -0.79 2,639,802 proving that a lot of the scepticism other day of gains, with support com- slapped a record $5bn fi ne on Face- Itochu Corp 2,105.50 0.38 3,079,900 Reckitt Benckiser Group Plc 6,475.00 -1.28 878,305 Ana Holdings Inc 3,636.00 0.39 465,200 about Boris Johnson’s Brexit policy was ing from healthy earnings results and book for privacy violations in a wide- Royal Bank Of Scotland Group 228.20 -0.17 9,372,681 Mitsubishi Electric Corp 1,462.50 0.97 2,471,600 already built into the price,” said City renewed hopes for a resolution of the ranging settlement that also called for Royal Dutch Shell Plc-A Shs 2,541.50 -0.94 5,627,029 Sumitomo Mitsui Financial Gr 3,838.00 -0.26 3,060,000 Index analyst Fiona Cincotta. China-US trade war. revamping privacy controls and over- Royal Dutch Shell Plc-B Shs 2,545.50 -0.95 3,417,452 Relx Plc 1,939.00 -0.44 2,781,600 Europe’s major stock markets were Reports said US President Donald sight. Rio Tinto Plc 4,606.50 -4.60 4,987,930 mixed at the close meanwhile, with Trump’s Trade Representative Robert In London, the FTSE 100 closed Rightmove Plc 513.40 0.16 2,388,793 SENSEX London miners weighed down by slid- Lighthizer would lead a delegation to down 0.7% to 7,501.46 points; Par- Rolls-Royce Holdings Plc 873.80 -0.39 1,861,298 ing iron ore prices, dealers said. China next week to resume trade talks. is — CAC 40 ended down 0.2% to Rsa Insurance Group Plc 574.20 -0.10 1,543,812 Company Name Lt Price % Chg Volume “A sell-off in iron ore prices in China The meeting would be the first 5,605.87 points and Frankfurt — DAX Rentokil Initial Plc 423.90 -0.12 5,444,755 Adani Ports And Special Econ 380.80 -4.74 4,748,109 has prompted a decline in major min- head-to-head since negotiations 30 closed up 0.3% to 12,522.89 points Sainsbury (J) Plc 203.20 -0.05 5,472,166 Asian Paints Ltd 1,483.40 3.78 7,400,250 yesterday. Schroders Plc 3,018.00 0.70 258,428 ing stocks like Rio Tinto, BHP Billiton were cut short in May by Trump’s Axis Bank Ltd 712.30 -2.16 6,618,279 Sage Group Plc/The 816.60 1.42 1,926,535 Bajaj Finance Ltd 3,173.55 -3.15 2,767,989 Segro Plc 776.80 3.00 2,501,526 Bharti Airtel Ltd 338.90 -1.37 4,751,577 Smurfit Kappa Group Plc 2,686.00 0.52 202,893 Bharti Infratel Ltd 264.15 0.90 2,286,092 HONG KONG HONG KONG Standard Life Aberdeen Plc 310.40 1.04 4,954,502 Bajaj Auto Ltd 2,522.60 -0.05 481,139 Ds Smith Plc 383.60 1.05 2,595,897 Bajaj Finserv Ltd 7,065.30 -1.47 441,763 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Smiths Group Plc 1,626.00 0.68 576,963 Bharat Petroleum Corp Ltd 349.10 -2.77 4,202,747 Scottish Mortgage Inv Tr Plc 552.00 -0.09 1,499,244 Ck Hutchison Holdings Ltd -0.13 Cipla Ltd 518.75 -1.92 2,707,033 76.10 4,130,967 Hong Kong & China Gas 17.54 -0.45 10,820,479 Smith & Nephew Plc 1,759.50 0.17 1,526,220 Hang Lung Properties Ltd -0.73 Coal India Ltd 216.85 -0.55 4,877,895 19.14 5,558,600 Bank Of Communications Co-H 5.84 -0.51 13,739,701 Spirax-Sarco Engineering Plc 8,770.00 0.06 205,669 Ck Infrastructure Holdings L 0.16 Dr. Reddy’s Laboratories 2,599.05 -0.01 453,664 61.90 1,312,943 China Petroleum & Chemical-H 5.15 -0.19 48,414,837 Sse Plc 1,165.00 0.87 3,685,577 Hengan Intl Group Co Ltd 2.19 Eicher Motors Ltd 16,381.05 -4.20 245,025 60.60 4,792,999 Hong Kong Exchanges & Clear 266.80 -0.22 4,683,963 Standard Chartered Plc 682.40 -4.51 10,285,249 China Shenhua Energy Co-H -0.25 Gail India Ltd 136.65 -1.41 5,568,155 16.08 14,016,363 Bank Of China Ltd-H 3.27 0.31 172,600,061 St James’s Place Plc 1,087.50 0.18 2,174,884 Cspc Pharmaceutical Group Lt 0.76 Grasim Industries Ltd 878.45 -0.57 1,003,677 13.34 29,412,064 Hsbc Holdings Plc 64.70 -0.08 11,167,792 Severn Trent Plc 2,040.00 0.69 793,191 Hang Seng Bank Ltd 0.26 Hcl Technologies Ltd 1,021.30 1.02 1,192,280 195.00 805,871 Power Assets Holdings Ltd 57.95 0.00 1,650,747 Tesco Plc 228.00 -0.83 18,692,456 China Resources Land Ltd 3.53 Housing Development Finance 2,184.25 2.14 3,133,303 35.15 15,603,849 Mtr Corp 53.60 -0.92 3,825,153 Tui Ag-Di 857.80 0.23 1,384,417 Ck Asset Holdings Ltd 1.55 Hdfc Bank Limited 2,280.90 0.77 4,340,935 62.10 6,256,235 China Overseas Land & Invest 27.95 0.36 9,290,123 Taylor Wimpey Plc 173.50 3.86 16,869,344 Sino Biopharmaceutical -1.49 Hero Motocorp Ltd 2,403.40 -2.67 619,043 9.25 42,226,626 Tencent Holdings Ltd 365.60 1.95 17,751,719 Unilever Plc 4,998.00 -0.87 1,840,947 Henderson Land Development -0.23 Hindalco Industries Ltd 197.25 -2.88 5,942,539 42.70 3,610,926 China Unicom Hong Kong Ltd 7.91 -1.37 55,387,615 United Utilities Group Plc 789.60 0.66 2,520,696 Aia Group Ltd -0.40 Hindustan Petroleum Corp 278.60 -4.03 5,208,921 86.80 13,562,096 Link Reit 95.45 -0.42 2,643,757 Vodafone Group Plc 131.76 0.73 70,146,573 Ind & Comm Bk Of China-H 0.18 Hindustan Unilever Ltd 1,728.65 2.08 2,621,818 5.54 137,143,632 Sino Land Co 13.30 -0.60 5,119,384 John Wood Group Plc 553.60 1.91 1,985,066 Want Want China Holdings Ltd -0.16 Icici Bank Ltd 408.50 -0.84 16,505,930 6.25 4,810,312 China Resources Power Holdin 11.10 0.73 3,342,333 Wpp Plc 936.60 1.14 2,201,987 Sun Hung Kai Properties -0.76 Indiabulls Housing Finance L 611.70 -4.50 9,438,901 130.60 3,213,321 Petrochina Co Ltd-H 4.24 0.00 35,000,893 Whitbread Plc 4,460.00 -1.83 4,108,448 New World Development -1.31 Indusind Bank Ltd 1,362.00 -3.86 4,148,585 12.06 14,688,332 Cnooc Ltd 13.14 -0.90 22,864,246 Geely Automobile Holdings Lt 3.31 Infosys Ltd 786.30 -0.47 5,745,146 12.48 56,677,698 China Construction Bank-H 6.17 -0.16 182,166,331 Swire Pacific Ltd - Cl A 0.68 Indian Oil Corp Ltd 147.95 0.41 41,373,022 96.40 1,540,347 China Mobile Ltd 68.65 -0.72 15,948,074 Sands China Ltd 0.75 Itc Ltd 270.85 0.07 12,072,603 40.55 5,862,133 TOKYO Wharf Real Estate Investment -0.69 Jsw Steel Ltd 255.25 -3.06 10,491,930 50.35 3,025,726 Clp Holdings Ltd -0.23 Kotak Mahindra Bank Ltd 1,497.20 0.21 2,938,236 86.85 1,939,655 Country Garden Holdings Co 0.92 Company Name Lt Price % Chg Volume Larsen & Toubro Ltd 1,387.35 -1.57 5,434,450 11.00 17,499,796 Aac Technologies Holdings In -0.45 Mahindra & Mahindra Ltd 550.00 -1.63 3,041,526 44.45 8,624,982 GCC INDICES Japan Airlines Co Ltd 3,441.00 0.09 940,700 Shenzhou International Group -0.80 Maruti Suzuki India Ltd 5,768.00 -1.80 800,687 111.90 996,014 Indices Lt Price Change Recruit Holdings Co Ltd 3,700.00 0.98 3,312,300 Ping An Insurance Group Co-H 0.74 Ntpc Ltd 131.85 -0.90 10,421,947 95.00 16,700,505 Softbank Corp 1,443.50 0.03 5,526,100 China Mengniu Dairy Co 31.75 0.00 3,373,380 Oil & Natural Gas Corp Ltd 143.60 -0.69 9,202,665 Doha Securities Market 10,549.75 +38.50 Kyocera Corp 7,112.00 0.94 1,206,200 Sunny Optical Tech 3.49 Power Grid Corp Of India Ltd 209.80 -0.31 10,227,035 93.40 9,453,938 Nissan Motor Co Ltd 781.60 0.96 9,795,600 Boc Hong Kong Holdings Ltd 31.05 -0.32 7,567,290 Reliance Industries Ltd 1,259.10 -1.13 6,943,982 Kuwait Stocks Exchange 4,835.73 +24.78 T&D Holdings Inc 1,210.00 0.04 2,011,800 China Life Insurance Co-H 0.00 State Bank Of India 339.60 -0.76 20,823,143 20.40 20,611,050 Toyota Motor Corp 7,197.00 1.37 5,064,500 Citic Ltd 10.56 0.57 7,731,549 Sun Pharmaceutical Indus 425.55 -1.09 5,319,256 Oman Stock Market 3,765.06 +1.47 Kddi Corp 2,900.00 -0.07 3,209,400 Galaxy Entertainment Group L 0.09 Tata Steel Ltd 446.00 -3.01 8,342,001 56.20 3,893,672 Nitto Denko Corp 5,279.00 0.84 598,900 Wh Group Ltd 8.02 -0.74 25,991,625 Hitachi Ltd 4,040.00 1.30 2,067,800 Tata Consultancy Svcs Ltd 2,096.80 -0.74 2,413,196 Takeda Pharmaceutical Co Ltd 3,712.00 0.19 2,970,900 Tech Mahindra Ltd 660.45 -1.60 3,060,459 Jfe Holdings Inc 1,504.50 -1.08 3,240,600 Titan Co Ltd 1,087.40 -1.07 1,732,174 Sumitomo Corp 1,636.00 -0.55 2,964,700 Tata Motors Ltd 151.25 -3.17 16,292,964 Canon Inc 3,123.00 0.74 2,479,000 Upl Ltd 617.05 -4.36 3,341,555 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The Eisai Co Ltd 5,883.00 -0.51 582,200 Ultratech Cement Ltd 4,442.85 -2.13 225,538 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Nintendo Co Ltd 39,850.00 -0.25 1,052,500 Vedanta Ltd 165.05 -1.81 9,396,709 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 10,290.00 2.18 1,316,700 Wipro Ltd 264.20 -0.11 2,249,472 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Mitsubishi Corp 2,948.00 0.39 3,700,000 Yes Bank Ltd 89.15 -1.65 104,007,122 this data.” Smc Corp 42,070.00 2.06 249,000 Zee Entertainment Enterprise 379.60 5.21 20,283,703 Gulf Times 10 Thursday, July 25, 2019 BUSINESS

Sensex marks longest India plan to raise losing streak in two months on credit risk

Bloomberg, Reuters the top gainer on the benchmark af- Mumbai ter its fi rst-quarter net income beat the highest analyst estimate, while $10bn meets world IndusInd Bank Ltd dropped the most. ndian equities dropped for a fi fth Tata Motors Ltd fell to its lowest day as concern over bad-debt close since February 8, after Fitch Irisks at some fi nancial companies Ratings downgraded its long-term outweighed a mostly positive start to issuer default rating a notch deeper the earnings season. into junk status. The benchmark S&P BSE Sensex Meanwhile the rupee yester- Index fell 0.4% at the close in Mum- day weakened against the US dollar desperate for yield bai, while the NSE Nifty 50 Index lost tracking losses in its Asian peers and 0.5%. Both gauges marked their long- due to a surge in crude oil prices. Bloomberg But the proposed issuance has also est losing streaks and lowest closes The Indian currency opened at Mumbai come under scrutiny, with former cen- since mid-May. 69.09 a dollar. The rupee was traded tral bankers and some independent Stocks swung to losses within min- at 69.08, down 0.22% from its previ- economists criticising the move, say- utes of opening as shares of Reliance ous close of 68.94. ndia’s maiden overseas bond sale ing India’s general budget defi cit and Industries extended declines after The yield on the 10-year govern- couldn’t have come at a better time a wider current-account defi cit could talks to sell a unit were said to have ment bond was at 6.477% compared Iwith yields tumbling globally. make the nation vulnerable during epi- stalled. with Tuesday’s close of 6.463%. A $10bn issuance of sovereign notes sodes of global swings. The central bank has said it’s de- Oil rose for the fourth day after by Asia’s third-biggest economy is The combined budget defi cit of fed- tected “signs of fragility” in some a report showed a hefty drop in US expected to price at a yield premium eral and state governments and state- fi nancial fi rms and is monitoring crude inventories and as the resump- of about 90 basis points to 130 points run companies is about 8% of the gross to prevent contagion and a poten- tion of direct trade talks between over US Treasuries, according to a domestic product. While the gap and tial surge in bad debt. Talks between Washington and Beijing provided a Bloomberg survey of foreign and local growing stresses in the banking system Reliance and Saudi Arabian Oil Co glimmer of hope on the demand side. investors. are an area of concern, BNP Paribas stalled on diff erences over the deal’s The rupee has risen 1% against the That’s in line with sales by coun- Asset Management says Indian assets structure, Bloomberg News report- greenback in the year so far. Foreign tries with similar credit ratings such may still see good demand. ed shortly before Tuesday’s market investors bought $9.86bn in Indian as Indonesia. The novelty of a debut “Sentiment has been improving late- close, citing people with knowledge equities and $2.55bn in the debt mar- off ering may also support demand for ly, and, India credit metrics are overall of the matter. ket during the period. India’s debt, analysts say. good and improving. So the issuance Of the twelve Nifty companies that Asian currencies were trading India’s overall budget defi cit is one should attract interest from all insti- have reported earnings so far, eight lower as the dollar remained buoyant of the highest in Asia, but that may not tutional investors,” said Jean-Charles have either met or exceeded analyst amid optimism the US and China are deter bond buyers desperate for extra Sambor, London-based deputy head of estimates. Bharti Infratel Ltd will an- making headway in resolving their returns at a time when about $13tnof ing market countries this year. Indo- tors have capped holdings of sovereign emerging-market fi xed income at BNP nounce earnings. trade dispute. global fi xed-income assets, or around a nesia sold 3.4% bonds due 2029 at debt by overseas investors, who are al- Paribas Asset Management. “The real pain still lies in bank- Indonesian rupiah was down quarter of the total, have negative yields. 130.50 basis points over Treasuries in lowed to own only about 6% of total India’s debt sale may also be a boon ing, which was the major driver since 0.24%, Philippines peso fell 0.23%, The deal will give global funds more June, while the Philippines issued 10- outstanding bonds, while peers like for local companies, who have already many months,” Sameet Chavan, a Thai baht declined 0.13%, Malaysian access to Indian sovereign bonds, and year notes at 110 basis points in Janu- Indonesia and South Korea have no re- sold off shore bonds at a record pace of technical analyst at Angel Broking ringgit lost 0.07%, and China ren- may also let the country’s other issu- ary. Russia sold 2029 dollar bonds at a strictions. about $15.5bn so far in 2019, according Ltd, wrote in a note on Tuesday. minbi fell 0.04%. The South Korean ers adjust debt sale prices based on the 3.95% yield, and Saudi Arabia issued The announcement of the foreign- to data compiled by Bloomberg. Eighteen of the 19 sector sub-in- won was up 0.09% and Japanese yen off shore sovereign bond as a bench- 2bn euros of bonds due in 2039 at 140 bond sale by the country’s Finance Those fi rms may be able to off er dexes compiled by BSE Ltd declined, rose 0.05%. mark. basis points over mid-swaps. Minister Nirmala Sitharaman in the overseas notes at a lower yield after led by gauges of metal and auto The dollar index, which measures “We think an Indian sovereign Eu- “The very low and even negative July 5 budget helped boost onshore sov- the Indian sovereign deal, in line with stocks. the US currency’s strength against robond issue would be very well re- yields in developed markets are in- ereign notes as investors cheered the past moves in other markets, including Twenty-four of the 31 Sensex a basket of major currencies, was at ceived in today’s markets,” said Gre- directly positive for EM bonds,” and opening of a new avenue for the country China. members and 38 of the 50 Nifty 97.732, up 0.03% from its previous gory Smith, fi xed-income strategist at that’s likely to result in strong demand to raise funds. The yield on benchmark “The maiden bond issuance will cre- stocks dropped. Asian Paints Ltd was close of 97.705. Renaissance Capital in London. “With for India’s sovereign off ering, said Jan 10-year bonds declined to the lowest in ate a benchmark for Indian companies US 10-year Treasuries yielding close to Dehn, the London-based head of re- 2 1/2 years before paring some gains to to raise cheaper money abroad,” said B 2%, the search for yield continues, plus search at Ashmore Group Plc. India trade at 6.46% yesterday. Prasanna, group head – Global Mar- foreign investors would be looking to “continues to place barriers to foreign The government is considering the kets – Sales, Trading and Research at EM tech stocks under pressure realise long-sought-after exposure to investors in the domestic bond market, issuance in US dollar, euro, and yen, ICICI Bank. “Given that it will be In- the Indian economy.” so dollar bonds are a second-best way and details will be fi nalised as early as dia’s maiden sovereign issue, we feel India’s debt sale would follow a to express a view,” he said. October, people familiar with the mat- that it will command scarcity premium Reuters were released. “Global growth has slew of sovereign issuance by emerg- The South Asian nation’s regula- ter said. in the global market.” London already been stifled by the protracted impasse between the world’s two larg- est economies,” said Han Tan, market Government prefers to sell euro or yen-denominated bonds Emerging-market shares fell yesterday analyst at FXTM. as tech stocks came under pressure “While the resumption of trade talks from a US investigation of technology appears to mitigate any near-term Bloomberg debut off ering at a time when investors building an Indian sovereign curve Eurobond issue would be very well companies, while weak data in some deterioration in US-China tensions, Mumbai are desperate for returns as the world’s would also be a strategic goal, and that received in today’s markets,” said major economies aggravated concerns prudent investors will not get carried pile of negative-yielding debt grows to can only be done in dollars.” Finance Gregory Smith, fixed-income strategist over global growth. away, seeing as a meaningful deal still a record $13.4tn. ministry spokesman DS Malik didn’t at Renaissance Capital in London. Developing-world tech stocks, seems a long way off at this point in India is considering an option to While Saudi Arabia and Argentina immediately respond to calls. “With US 10-year Treasuries yielding dominated by Asian listings, fell 0.5% time,” he added. raise $10bn in one go from its first have raised more money in recent The maturity of the bonds could be close to 2%, the search for yield to end three days of gains after the US South Korean stocks fell nearly 1% as overseas bond sale as early as October, years from international bond sales as 10 years or more, the people said. continues, plus foreign investors would Justice Department said it was opening chipmakers shed recent gains. according to people with knowledge of emerging markets return in popularity, The current thinking among off icials be looking to realise long-sought-after an antitrust investigation of major Trade tensions between Seoul and the matter. Prime Minister Narendra Modi’s is that a larger sale would be more exposure to the Indian economy.” digital firms. Tokyo over compensation for wartime The government would prefer to sell government will be working to a tight attractive to investors than breaking Global bonds have rallied this year However, Chinese and Hong Kong forced labourers showed scant signs yen or euro-denominated debt so timeline. the fundraising task into smaller parts, as major central banks turned stocks got a boost from progress on of abating. as to off er lower yields, the people “Market technicals are very strong, and because costs would be lower. dovish, with the slide in Treasury US-China trade. White House economic Indices in Mumbai, Moscow and said, asking not to be identified as the the country is on a positive political The government doesn’t plan to hedge yields spurring investors to pile into adviser Larry Kudlow said on Tuesday Johannesburg all fell 0.3% to 0.6%. Cur- plan is still under discussion. A dollar trajectory, so why not strike while the the proceeds as that would increase emerging-market debt. it was a good sign that top US off icials rencies in the developing world gained, bond isn’t ruled out given there would iron is hot,” said Todd Schubert, the costs, the people said. Yields on India’s benchmark local- would travel to China to discuss reviv- with Russia’s rouble rising along with be more liquidity, while it could also head of fixed-income research at Bank The central bank is in agreement with currency bonds, which foreign ing stalled trade talks. crude oil prices. decide to sell the debt in multiple sales of Singapore. the plan to raise debt overseas, the investors have limited access, have Off setting the trade optimism were South Africa’s rand also rose after over a longer period, they said. The surprise would be if there’s no off icials also said. dropped almost 180 basis points from global growth worries after economic June inflation data came in better than India is banking on the novelty of a dollar tranche as “one would think that “We think an Indian sovereign a September high. data from the eurozone and Japan expected.

Iron ore takes another big hit as blows rain down on the bulls Most Asian markets end higher

Bloomberg a January dam breach, as well as AFP Hynix both sharply lower on wor- Singapore booming demand in top user China. Hong Kong ries about the impact of the sim- There’s “a number of recent data points mering trade row with Japan that indicating the top may now be in for threatens to hit South Korea’s cru- Iron ore’s sell-off picked up pace on a iron ore,” Liberum Capital Markets said ost Asian markets en- cial tech industry. salvo of bearish blows, with Brazil’s Vale in a note, cutting Rio Tinto Group, BHP joyed another day of There was little reaction to the SA given the green light to restart some Group and Anglo American Plc to hold. Mgains yesterday, with International Monetary Fund’s de- operations, downgrades to share targets Steel inventories have been building up, support coming from more cision to lower its global growth at top producers including Rio Tinto iron ore port holdings have stabilized, healthy earnings results and re- forecast for this year and next ow- Group, and a forecast from UBS Group and mills’ profitability in China has fallen newed hopes for a resolution of ing to trade tensions, economic un- AG that prices will sink below $100 a to break-even levels, it said. the China-US trade war. certainty and rising prospects for a ton. In Singapore, iron ore for August fell as The pound was barely moved af- no-deal Brexit. Futures in Singapore and China both much as 4.2% to $108.45 a tonne, and ter Tuesday’s brief rally in reaction The Fund said the world faced a sank more than 4%, extending retreats was at $110.66 yesterday. to Boris Johnson’s election to re- “precarious” 2020. On currency from the highest in more than five The drop followed losses in the first place Theresa May as British prime markets, the pound remained stuck years. Vale said it’s got approval for two days of the week. On the Dalian minister, with investors keen to see around two-year lows against the partial resumption of dry-processing Commodity Exchange, the January whether the leading Brexiter push- dollar after Johnson’s expected operations at the Vargem Grande contract tumbled as much as 5.3%. es ahead with a no-deal divorce leadership win, which means he complex, allowing the return of 5mn Among recent market drivers: In its from the European Union. will be appointed prime minister. tons that’ll help alleviate a shortage. note, Liberum reduced Rio’s target price While Federal Reserve offi cials “Boris Johnson has vowed to “Vale is looking like its mobilising to 45 pounds. On Tuesday, the miner are blocked from speaking on pol- deliver Brexit by the October 31 production to start exporting more,” closed at 48.285 pounds. icy ahead of a crucial meeting next deadline, ‘do or die’,” said Quentin said Wayne Gordon, Singapore-based South Korea’s Posco, one of Asia’s top week, their decision on how far to Fitzsimmons, an asset manager at executive director for commodities and mills outside China, said on Tuesday it cut interest rates is the big question T Rowe Price, adding this would be foreign exchange at UBS Group’s wealth expected iron ore to drop back below on trading fl oors. Investors seen in front of an electronic stock board at a securities a tough ask as he comes up against management unit. $100 in the fourth quarter, citing a pick- However, investors are still keep- brokerage in Shanghai. The Composite index closed up 0.8% to 2,923.28 the same problems that befell “The tightness in the iron ore market up in supply after disruptions in Brazil. ing an eye on the corporate report- points yesterday. Theresa May. will start to be a little bit allayed, and as Citigroup Inc predicted iron ore will ing season, which has been broadly “The UK parliament has rejected we get into the fourth quarter, we think drop to $95 in the fourth quarter, and positive. The latest big-name fi rms were cut short in May by Trump’s on the amplitude of the US Federal the withdrawal agreement that prices will dip below $100, back down hit $75 in final three months of next to post positive results were Coca- surprise decision to hit China with Reserve’s next easing cycle as the May struck with the European Un- toward $80.” year on slowing Chinese steel demand, Cola, toymaker Hasbro and Harley- more tariff s for what he called Bei- looser the policy, the higher equity ion, the EU has stated fi rmly that Iron ore has seen a steep sell-off according to report dated July 21. Davidson, helping all three main jing’s backsliding. markets will soar.” it will not renegotiate that agree- this week as market sentiment shifts Overall port holdings in China expanded indexes on Wall Street end with Since then, he has met Chinese Hong Kong gained 0.2% and ment, and the majority of mem- following a run of bearish indicators, 2.6% last week, the biggest gain since sharp gains. leader Xi Jinping on the sidelines of Shanghai fi nished 0.8% higher, bers of parliament remain opposed with port holdings in China building February, according to Shanghai Adding to the upbeat mood were the G20 in Japan, where they agreed while Tokyo ended up 0.4%. to the UK leaving the EU without a up, mills’ profitability slipping, steel Steelhome E-Commerce Co Inventories reports that US President Don- to get both sides back to the table. Sydney gained 0.8% and Singa- deal being agreed upon.” inventories rising, and predictions for of Australian ore expanded for a fourth ald Trump’s Trade Representa- But Vanguard Markets’ Stephen pore put on 0.1% while Bangkok In Tokyo, the Nikkei 225 closed lower iron prices stacking up. week. tive Robert Lighthizer will lead a Innes said: “While the trade con- was also higher. up 0.4% to 21,709.57 points; Hong Taken together, that’s eroding the rally A Bloomberg gauge of steelmakers’ delegation to China next week to versation remains high on the list of But Taipei slipped 0.1% and Kong — Hang Seng ended up 0.2% seen in the first half, which was spurred profitability in China sank to the lowest resume trade talks. supportive factors for equity mar- Mumbai shed 0.6%. to 28,524.04 points and Shanghai by supply hits suffered by Vale following level since November earlier this week. The meeting would be the fi rst ket this week, investors’ risk ba- Seoul was down 0.9% with mar- — Composite closed up 0.8% to head-to-head since negotiations rometers are completely dialled in ket heavyweights Samsung and SK 2,923.28 points yesterday. Gulf Times Thursday, July 25, 2019 11 BUSINESS Russia’s finance ministry seeks delay of Basel III reform

Reuters the financial system, but ministers are “We have in mind a postponement economy sector...in the nearest future.” period to the approach of using Siluanov wrote. The central bank Moscow worried that economic growth — and of the increase in additions to the “At the same time, the central bank ratings,” Trofimova said. In his letter to and some parts of the government households’ real disposable incomes requirements of the banks’ capital continues work to create conditions Nabiullina, Siluanov argued that using are already at odds over economic — is stagnating, hitting the Russian adequacy,” Siluanov wrote. for national rating agencies’ ratings rating agencies would produce a better growth, as the central bank is targeting Russian Finance Minister Anton leadership’s ratings. Under the central bank’s proposals, usage in the banking supervision in the outcome. inflation and opposing the finance Siluanov has asked the central bank Some ministers have been pressing banks are already increasing capital future,” the central bank said. He said that under the Basel III changes ministry’s idea to start spending a to postpone reforms requiring banks the central bank to change the way it buff ers as part of the Basel III process Off icially, the Finance Ministry declined proposed by the central bank, banks rainy-day fund. to increase capital buff ers under the supervises banks to encourage more and should fully comply during the next comment on the letter. may try to mislead the regulator on Since Basel III calls for setting aside “Basel III” international financial rules, lending which will in turn contribute to couple of years. Reuters has not been able to their asset quality, seeking to reduce more funds to form the enlarged according to a letter seen by Reuters. growth. No government off icials have said how establish which of the rival methods the amount by which they are forced to capital, the banks have repeatedly The request for the delay focuses on The move to increase banks’ capital long it would take before domestic of assessing risk would result in increase their capital buff ers. asked the central bank to postpone the disagreement about how the banks’ buff ers — part of the Basel III rules ratings can be used as the basis for banks having to increase their capital Siluanov also said the requirement switch to the new rules. risks are assessed, with the central bank developed after the financial crisis of Basel III changes. buffers more. being planned by the central bank Andrey Kostin, the powerful CEO saying it will do in-house assessment 2008-09 — is likely to have the eff ect A Finance Ministry source, speaking However, Russia’s domestic ratings, under the Basel III reforms for a of state-owned VTB, has called for and the finance ministry arguing it of holding down lending, the chief on condition of anonymity because whose active development started borrower to have publicly traded domestic ratings to be used when should be based on ratings by domestic executive of Russia’s second bank has he was not allowed to discuss non- only a couple of years ago, lack deep instruments was unacceptable, as the evaluating a borrower’s risk, saying agencies. said. public correspondence, confirmed the statistics on defaults and cover a three banking groups the central bank they more fairly represent the reality. Siluanov’s request, which had not been In the letter dated July 17, Siluanov authenticity of the letter. limited number of companies, said had to rescue back in 2017 were on For VTB alone, Basel III means increase previously reported, comes at a time of wrote to central bank governor Elvira In an e-mailed response to Reuters, Ekaterina Trofimova, a partner at paper meeting that requirement. of the capital by 450bn roubles. broader tension between the Russian Nabiullina saying the introduction of the central bank said preliminary data Deloitte CIS and former head of Russian “Implementation of the method The bank has already partially beefed government and central bank over the the higher capital buff ers in line with shows that its risk assessment would ratings agency ACRA. announced (by the central bank)...may up its capital and was allowed by the banking sector and tools for aiding the Basel III changes should be tied to allow the freeing up of banking capital “In these conditions, it’s only possible lead to the accumulation of risks to Finance Ministry to cut dividends on economic growth. the introduction of domestic ratings for across the system and “give additional to apply a combination of the two financial stability and in the end to the last year’s profits so it could aff ord to The central bank’s priority is stability of the banks. opportunities for lending to the real methods, with a multi-year transition direct losses for society’s prosperity,” comply with the central bank’s switch.

US housing and Facebook to pay record manufacturing $5bn US fi ne over its sectors mired in weakness

Reuters sponse of the housing market to privacy violations Washington lower mortgage rates has been underwhelming,” said John Ry- Reuters nancial controls,” Zuckerberg ding, chief economist at RDQ Washington said in a Facebook post. “Going ales of new US single- Economics in New York. “The forward, when we ship a new family homes rebounded best description of home sales is feature that uses data, or modi- Ssharply in June, but sales that they have levelled out in the acebook Inc will pay a fy an existing feature to use data for the prior three months were neighbourhood of 620,000.” record-breaking $5bn fi ne in new ways, we’ll have to docu- revised down, indicating that The 30-year fi xed mortgage Fto resolve a government ment any risks and the steps the housing market continued to rate has dropped to an average of probe into its privacy practices we’re taking to mitigate them.” tread water despite lower mort- 3.81% from a more than seven- and the social media giant will The FTC also said that Cam- gage rates and a strong labour year peak of 4.94% in November, restructure its approach to bridge Analytica’s former CEO market. according to data from mortgage privacy, the US Federal Trade Alexander Nix and former app Other data yesterday showed fi nance agency Freddie Mac. Commission said yesterday. developer Aleksandr Kogan had manufacturing activity slow- New home sales in the South, The probe uncovered a wide agreed to a settlement restrict- ing to a near 10-year low in early which accounts for the bulk of range of privacy issues. It was ing how they conduct business. July, with production volumes transactions, rose 0.3% in June triggered last year by allega- Senator Richard Blumen- and purchases falling. to a 13-month high. tions that Facebook violated a thal of Connecticut was one of Weak housing and manufac- Sales in the Midwest dropped 2012 consent decree by inap- several Democratic lawmakers turing are off setting strong con- 26.3% to their lowest level since propriately sharing information who criticised the settlement, sumer spending, holding back the September 2015. belonging to 87mn users with calling it “a fi g leaf” that off ers economy and posing a threat to Sales in the West rebounded the now-defunct British politi- “no accountability for top ex- the longest expansion in history. 50.4%, the biggest gain since cal consulting fi rm Cambridge ecutives.” “By relying on a mon- Worries about slowing August 2010, more than recoup- Analytica. etary fi ne to deter Facebook, the growth, especially tied to trade ing May’s 38.5% plunge. The consultancy’s clients FTC has failed to heed history’s tensions between the United In the Northeast, sales included President Donald lessons. States and China, and weakness dropped for the second straight Trump’s 2016 election cam- Federal Trade Commission chairman Joe Simons announces that Facebook has agreed to a settlement Facebook has already writ- overseas are likely to encourage month, hitting their lowest level paign. of allegations it mishandled user privacy during a news conference at the FTC headquarters in ten this penalty down as a one- the Federal Reserve to cut inter- in eight months. The FTC voted 3-2 along par- Washington, yesterday. time-cost in return for the ex- est rates next Wednesday for the While cheaper mortgage rates ty lines to adopt the settlement, traordinary profi ts reaped from fi rst time in a decade. and the lowest unemployment which requires court approval. pay the $5bn fi ne and said the independent privacy commit- nal penalties. Facebook also is a decade of data misuse,” said The Commerce Department rate in nearly 50 years are sup- The Republican commis- FTC deal would provide “a tee that removes “unfettered barred from asking for email Blumenthal. said new home sales rebounded porting demand for housing, sioners called the settlement “a comprehensive new framework control by Facebook CEO Mark passwords to other services Facebook’s legal issues may 7.0% to a seasonally adjusted expensive materials and land complete home run” that ex- for protecting people’s privacy.” Zuckerberg over decisions af- when consumers sign up. not be over. On Tuesday, the US annual rate of 646,000 units last and labour shortages are con- ceeded any award the commis- Its share price fell about 1% yes- fecting user privacy.” It is barred from using tel- Justice Department said it was month. straining builders’ ability to pro- sion could have gotten in court. terday at $200.39. Facebook also agreed to ex- ephone numbers for advertising opening a broad investigation of May’s sales pace was revised duce sought after lower-priced Democratic commissioners Democratic FTC Commis- ercise greater oversight over if they are obtained in a security major digital technology fi rms down to 604,000 units from the homes. said it did not go far enough or sioner Rohit Chopra com- third-party apps, and said it feature like two-factor authen- into whether they engage in an- previously reported 626,000 The median new house price require a large enough fi ne. plained that the penalty pro- was ending access to friend data tication. ticompetitive practices. units. was unchanged at $310,400 in Republican FTC Chairman vided “blanket immunity” for for Microsoft Corp and Sony The company must also get The department did not iden- Data for March and April was June from a year ago. Joe Simons stressed the FTC’s Facebook executives “and no Corp. The Republican majority user consent to use facial recog- tify specifi c companies but said also revised down. There were 338,000 new limited authority and desire to real restraints on Facebook’s on the FTC said the settlement nition data. the review would consider con- Economists polled by Reuters homes on the market last month, avoid a long uncertain court business model” and does “not “signifi cantly diminishes Zuck- Facebook said it may fi nd cerns raised about “search, so- had forecast new home sales, up 0.6% from May. fi ght. “Would it have been nice fi x the core problems that led to erberg’s power — something no additional problems as it initi- cial media, and some retail serv- which account for about 11% of “Half of today’s buyers to get more, to get $10bn, in- these violations.” government agency, anywhere ates a review of its systems and ices online.” Leaders in those housing market sales, increas- are looking for homes under stead of $5bn for example, to get Facebook agreed to pay an in the world, has thus far ac- warned it will take longer to areas include Google parent ing 6.0% to a pace of 660,000 $288,000,” said Robert Frick, greater restrictions on how Fa- additional $100mn to settle al- complished.” roll out updates as it plans to Alphabet Inc, Amazon.com Inc, units in June. New home sales corporate economist at Navy cebook collects uses and shares legations that it misled inves- Under the deal, Zuckerberg use “hundreds of engineers and Facebook and possibly Apple. are drawn from permits and tend Federal Credit Union in Vienna, data?” he asked at a press con- tors about the seriousness of and other Facebook executives more than a thousand people The Republican commission- to be volatile on a month-to- Virginia.” ference. “We did not have those its misuse of users’ data, the must sign quarterly certifi ca- across our company to do this ers led by Simons said if the FTC month basis. The building industry is con- options. Securities and Exchange Com- tions attesting to privacy prac- important work.” had gone to court “it is highly Sales increased 4.5% from a strained by a lack of labour and We cannot impose such mission said. tices. The FTC said Zuckerberg “As part of this settlement, unlikely that any judge would year ago. lots zoned for building, so they things by our own fi at.” Under the FTC settlement, or others fi ling a false certifi ca- we’re bringing our privacy con- have imposed a civil penalty “There is no evidence here to tend to devote their resources to Facebook confi rmed it would Facebook’s board will create an tion could face civil and crimi- trols more in line with our fi - even remotely close to this one.” change the narrative that the re- higher-margin houses.”

Eurozone bond yields slide towards new lows after bleak German data

Reuters The weaker data could prompt a to -0.802%. The 20-year German bond London more dovish than expected response yield fell into negative territory again. by the ECB at its July meeting, sug- It was last yielding below zero on gesting that rather than just changing July 5. Core eurozone government bond forward guidance, policy action could The figures may also feed into the yields slid towards all-time lows after be taken. US Federal Reserve’s growth outlook, data showed that a recession in Ger- Money markets are now pricing in ahead of its meeting next week, man manufacturing had worsened, around a 53% chance of a 10-basis- according to Mohammed Kazmi, prompting investors to increase bets point rate cut by the ECB at that meet- portfolio manager at UBP. on a more dovish European Central ing, while a 10 bps cut is fully priced in “The data also increases our con- Bank today. for September’s meeting. viction that the Fed will communicate The performance of German goods “If we don’t see a cut, what we are a dovish message next week, given producers dropped to its lowest in going to see is some really powerful that the Fed itself is currently more seven years, a survey showed yester- rhetoric that makes it clear that the focused on global growth data rather day, adding to a grim outlook for the ECB can fix the deposit problem by than domestic, and as such today’s eurozone’s largest economy after the tiering,” said Mizuho head of rates PMIs will confirm their fears of a glo- International Monetary Fund trimmed strategy Peter Chatwell. bal growth slowdown and force them its estimate for German growth this “The rally is led by BTPs (Italian into action,” Kazmi said. year by 0.1%. Across the eurozone, government bonds), which tells us a Spanish and Italian 10-year govern- business growth has been much good amount of quantitative easing ment bonds outperformed after the weaker than expected this month. expectations are building up, while data, despite political uncertainty in IHS Markit’s Flash Composite the German two year going below both countries. Spanish 10-year bond Purchasing Managers’ Index (PMI), minus 80bps shows expectations of yields were last down 7 basis points to considered a good guide to economic rate cuts ramping up,” he said. 0.329% before recovering somewhat health, missed forecasts. German 10-year bond yields fell as towards the end of the European trad- The index dropped to 51.5 this much as three basis points to a low of ing session. month from a final June reading of -0.39%, near the record low of 0.409% Italian debt of the same matu- 52.2, missing the median expectation reached earlier this month, while its rity fell as much as 13 basis points to in a Reuters poll for 52.1. two-year government bond yield fell 1.469%, a new 33-month low. Gulf Times 12 Thursday, July 25, 2019 AVIATION BUSINESS Central African routes on Exploring Greece’s abandoned airport airlines’ radar over Ebola area of the tarmac and out to the aircraft parking stands. The unique and somewhat terribly sad By Pratap John aspect of this abandoned airport is that several aircraft of the Olympic Airways fleet is still parked on the airport site The World Health Organisation today, rotting. (WHO) recently sounded the highest There they were. Facing the Aegean sea, alarm over Ebola, a highly contagious an Olympic Airways Boeing 747-200, disease, which has already killed Boeing 727, and Boeing 737. With this more than 1,600 people in the Demo- view, I felt I was transported to a time cratic Republic of Congo, a Central when aviation was more about stair- African country. cases to First Class, and less about tight Given the importance of travel and legroom and single-aisle cabins that we tourism to the global economy, have become accustomed to today. accounting for 10% of global GDP Olympic Airways, (which became and 1 in 10 jobs on the planet; the Olympic Airlines) was the Pan Am of impact of a health emergency Greece. In 1956, the Greek State signed goes beyond the health of citizens By Alex Macheras an agreement with Onassis — a Greek to include the health of the local business tycoon — for the exclusive use and the interconnected global of air transport in Greece. On April 6, economy. An Olympic Airlines 747, once the proud 1957, Olympic was born. As such, there is a need for co- flagship jet of an airline enjoyed by the The airline served international routes operation of all concerned to ensure likes of Hollywood actors, high-profile across the globe, including the impor- that all aff ected stakeholders have heads of state, and even Jackie Kennedy, tant Greece-Australia market, beginning access to timely and accurate glistens in the sun while sitting idle just Boeing 707 operations between Athens information to allow for eff icient and South of Athens. and Sydney twice weekly via Bangkok optimal decision-making, points out I’m at Hellinikon International Airport — and Singapore. the World Travel and Tourism Council an abandoned and derelict former hub In 1973 the death of Onassis’ son, in an (WTTC). airport of Athens, now a living example aircraft accident aff ected Onassis and “The scale and longevity of the of ‘when time stood still’. the Greek aviation industry. Onassis sold impact of Ebola on travel and tourism For six decades, the airport served as all Olympic shares to the Greek state is significant when compared to other A health worker checks the temperature of a man arriving at Bata Airport in Litoral, Equatorial Guinea. The West the Greek capital’s main hub for com- and died in 1975. Following this period, epidemics, reflecting the duration Africa Ebola epidemic, which had its first reported case in December 2013, lasted two-and-a-half years, aff ecting mercial airliners. It was the Greek home the state of the airline worsened, and of the epidemic and the period over almost 30,000 people, WTTC noted. Almost 99% cases were in Guinea, Sierra Leone and Liberia. of the ‘golden age’ of air travel, handling the company went on to face serious which the borders were closed and around 12mn passengers per year. financial trouble from the 1980s, mostly flights were frozen,” WTTC said in a The economy in Guinea almost IATA, said it is co-ordinating closely international traffic. It does not see The airport had two terminals: the West due to management problems. report on the Ebola impact on global came to a halt over the same with the WHO and the International any necessity for entry screening Terminal for Olympic Airways, and the In an attempt to make Olympic profit- travel and tourism industry. two-year period. Countries as far Civil Aviation Organisation (ICAO) at airports or other ports of entry East Terminal for all other carriers. able, the airline was managed as a The West Africa Ebola epidemic, away as Kenya, more than 3,000 with respect to potential implications outside the region as of now. But following the opening of the current subsidiary of British Airways. The result which had its first reported case in miles from the outbreak, reported a for air connectivity. In line with WHO guidance, Athens Eleftherios Venizelos Internation- was even larger debts and rising losses. December 2013, lasted two-and-a- significant loss in arrivals during the WHO’s current risk assessment awareness campaigns are being al Airport (ATH) in 2001, Hellinkon was After a steady removal of the long-haul half years, aff ecting almost 30,000 period, citing travel fears over Ebola for travel and transport does not conducted for travellers to and from neglected and is now caught up in years’ fleet, in early 2009 Olympic Airlines people, WTTC noted. among other factors, the report mandate any travel restrictions or the the aff ected region. worth of bureaucracy and debates sur- ceased operations, and while the brand Almost 99% cases were in Guinea, noted. closure of borders at points of entry. As always, passengers are advised rounding what the airport site should be lives on as ‘Olympic Air’ today (as a Sierra Leone and Liberia. The majority In today’s increasingly complex and On the contrary, in a recent not to travel if they are unwell. And used for. Not only are there no concrete regional subsidiary of Aegean Airlines), of airlines froze flight routes and a interconnected global landscape, statement, its Emergency Committee any traveller developing symptoms plans for the future of the site, but in the airline is no more. number of neighbouring countries co-ordination and co-operation are explicitly said, “No country should of the Ebola within three weeks of addition to this, there isn’t any company, Valuable aircraft parts, including the closed their borders with the aff ected returning from an aff ected region firm, nor individual person managing engines, were removed prior to storing country, including Senegal and Côte is advised to seek rapid medical the former hub airport itself — hence its these long-haul birds at Hellinikon. D’Ivoire. attention. dire, sad state. In front of me on the taxiway, a bunch Countries began to re-open their Beyond the Tarmacac Health experts say the Ebola virus Now, almost 20 years since the airports’ of inflight magazines are ready to be borders in January/February 2015, is not transmitted through air, but closure, the entire site is off -limits to the loaded on to an Olympic jet — a flight and as late as September 2016 in by contact with bodily fluids and public for fears of airport buildings, or that left 20 years ago. Still standing tall the case of Côte D’Ivoire, WTTC is contagious only once there are even aircraft parts collapsing. was the air traff ic control tower — once said. a ‘must have’, especially when it close its borders or place any symptoms such as fever, vomiting I started off exploring bearer to the main controlling the busy flow of aircraft The impact of Ebola on travel and comes to global security. The same restrictions on travel and trade. Such and diarrhoea. These symptoms terminal, the original signs point towards departing and arriving at Hellinikon. tourism was immediate for Sierra principles apply to communication, measures are usually implemented are so crippling that it is nearly the departure building, where even lug- It was a very unusual experience. To Leone, with tourist arrivals down whereby technologies from mobile out of fear and have no basis in impossible for anyone suff ering them gage storage signs were still on display, see a marvel of Greek aviation in such a by 50% from 2013 to 2014. To date, to social media have enabled tweets, science. They push the movement of to board a plane. showing pricing in Greek Drachma, the dire state was sad, but at the same time, neither arrivals nor spending from advisories and messages to go people and goods to informal border The World Health Organisation stated currency replaced by the euro in 2001. extraordinary. The stored Olympic jets international visitors have yet around the world in a matter of crossings that are not monitored, thus that the risk of Ebola spreading As I walked inside the terminal, the was a reminder of how aviation was, returned to their pre-epidemic peak, seconds. increasing the chances of the spread outside the aff ected region (in Central original stickers for British Airways ‘Euro but also how far we’ve come in what with inbound arrivals from Western Given that cancelled trips to of disease. Africa) was not high. Traveller’ and ‘Club Europe’ check-in is a relatively young industry. When markets hit hardest. affected destinations is often the “Most critically, these restrictions As of now, flying is not restricted to were visible. British Airways has flown a you’re next flying to Athens Eleftherios According to WTTC, the resulting immediate response to a crisis such can also compromise local the Ebola-hit countries and Africa at variety of aircraft to Athens, including the Venizelos International Airport (ATH), be “loss” of direct travel and tourism as Ebola epidemic, it is essential economies and negatively affect large. Lockheed L-1011 Tristar 100 which flew to sure to keep an eye out during descent GDP is equivalent to 0.9% and 1.6% that those decisions that affect response operations from a security That said, WHO has already sounded Hellinikon during the late-80s. The main for Hellinikon Airport, which can usually of whole economy GDP in Guinea economies and livelihoods are and logistics perspective. National a global alert on Ebola. So it is time terminal hall was designed by famed ar- be seen from the left side of the aircraft, and Sierra Leone respectively. GDP in made with fairness rather than authorities should work with the world took notice. chitect Eero Saarinen, who also designed before the final approach. Sierra Leone slowed from a 10-year as a result of any sensationalised airlines and other transport and the Gateway Arch in St Louis and Dulles average growth rate of 7.8%, to 4.6% messaging or fear. tourism industries to ensure that  Pratap John is Business Editor International Airport in Washington, DC.  The author is an aviation analyst. in 2014. The global trade body of airlines, they do not exceed WHO’s advice on at Gulf Times. Outside, I wandered around the airside Twitter handle: @AlexInAir

Air France plans jet Boeing burns $1bn in cash as MAX grounding costs mount orders at end of July, Bloomberg operations and low debt leverage says La Tribune Chicago have helped shield it from the grounding’s impact. Boeing was bolstered from improved Bloomberg Boeing Co burned $1.01bn in cash profitability for another source of Paris during the second quarter, a sign cash, the 787 Dreamliner. Deferred of the strain from a protracted production costs for the Dreamliner grounding of the 737 MAX jetliner fell $1.06bn to $21bn in the quarter, Air France-KLM plans to announce new plane orders following two fatal crashes. the company said on its website. when it releases half-year financial results on July 31 and Investors are studying the While revenues and profit plunged may decide to remove Airbus SE’s super-jumbo A380 performance compared with for Boeing’s commercial airplane from its fleet, La Tribune reported, without saying where last year’s $4.3bn free-cash-flow business due to the MAX, the it got the information. gain to gauge how badly the other divisions were solidly To renew its short- and medium-haul fleet, Air France company will be hurt if the MAX profitable with mid-teens profit may choose Airbus’s A320neo and A220-300, La Tribune crisis extends late into the year or margins targeted by Muilenburg. reported. For its Transavia low-cost unit, the company is beyond. Analysts had anticipated Earnings from operations more considering Boeing Co’s 737 MAX, although Air France an even greater drain for the than doubled to $975mn for may wait until the crisis over two fatal crashes of the jet first full quarter of operations Boeing’s defence unit, which has passed, the newspaper said. since commercial MAX flights reported an operating margin of An outside consultant is advising Air France on the future were halted in March: an average almost 15%. Profit at the global- of its long-haul fleet, La Tribune said. Chief executive off icer $2.02bn outflow. services business climbed 14% Ben Smith, who decided to invest in cabin renovations of “It could have been worse,” Robert to $687mn while margins edged the company’s seven A380s, now wants to remove the Stallard, an analyst with Vertical above 15%. plane from Air France’s fleet, according to La Tribune. Smith Research Partners, said in a note Boeing held $9.6bn in cash and said at the Paris Air Show last month that the company was to clients yesterday. “Although marketable securities at the end mulling how long to keep operating the plane. the headline numbers for 2Q look of the quarter, up from $7.7bn a Smith wants smaller planes that yield more financially, and pretty grim, they are not as bad as Industrial Average over the period. costs that could linger for years in halt to commercial flights ordered quarter earlier. The company’s he’s upset at repeated breakdowns of the A380, the news- we had been forecasting.” Boeing disclosed some bad news the form of discounts on future jet for an airplane as significant to consolidated debt jumped by paper said. Air France is considering Boeing’s 787 and The total bill for Boeing stands on another front: the 777X, the orders, spare parts and services. airlines and Boeing as the 737 $4.5bn to $19.2bn. Airbus’s A330neo to replace the A380s, La Tribune said. at $8.3bn, and counting, as the upgraded version of its behemoth The Chicago-based company also MAX, which has a backlog of In addition to its MAX-related Airbus decided in February to stop making the A380 global grounding for its best- wide-body jet. added another $1.7bn in extra 737 4,415 unfilled orders. During costs, Boeing also faces a $4.2bn double-decker because the plane never won broad selling aircraft extends into a “Engine challenges” are delaying production cost, bringing the total an earnings conference call at payment later this year to support from airlines, which prefer smaller, more fuel- fifth month. The manufacturer the first flight to early next year, drag against future profit from 10:30am New York time, Boeing Embraer SA for a venture that eff icient aircraft. continues to churn out 42 single- Boeing said in a statement as it disrupted MAX output to $2.7bn. chief executive off icer Dennis gives it control of the Brazilian The Air France-KLM announcements depend on successful aisle 737 jets a month to dull the reported earnings. And while the The accounting charge clipped Muilenburg is expected to discuss plane maker’s commercial conclusions to negotiations with plane makers, and the blow to suppliers. Since airlines company said it’s still targeting $8.74 a share from earnings. the company’s campaign to operations. Boeing will also take company may not be ready to announce decisions on all of and lessors can’t take delivery of late 2020 for the first delivery, it Boeing swung to a core loss of restore confidence in the plane over $3.5bn of Embraer’s debt. its fleet needs when earnings are released, La Tribune said. MAX planes with the flying ban warned that “there is significant $5.82 a share, according to a and the levers it can pull to Moody’s Investors Service and in place, payments to Boeing risk to this schedule” because of company statement. Analysts maintain liquidity. Fitch Ratings revised Boeing’s have dropped while the company the engine issues. had expected a profit of $1.98 a Boeing’s best estimate is that credit outlook to negative on July absorbs the expense of storing In the second quarter, the share, according to the average aviation off icials in the US and 22 while aff irming the company’s about 150 newly built aircraft. company’s cash consumption of analyst estimates compiled elsewhere will begin to clear the rating at the sixth-highest level of The shares fell less than 1% to “was pretty much in line” with by Bloomberg. The charge didn’t plane for flight early in the fourth investment grade. $371.75 before the start of regular expectations, said Ken Herbert, appear to be fully reflected in quarter, although the timing could “Fitch believes Boeing’s credit trading in New York. Through analyst with Canaccord Genuity. expectations. slip. Regulators in US, Europe, profile can support the current Tuesday, Boeing had slid 12% since “I don’t think anyone had great Sales plunged 35% to $15.8bn. Canada and other nations are 737 MAX stresses due to an Ethiopian Airlines 737 MAX visibility.” Analysts had predicted $20.4bn. reviewing an update for software substantial liquidity, financial 8 plunged into a field March 10, Boeing revealed last week that Inventory, already at a record linked to the crashes, as well as flexibility, low leverage, access to To renew its short- and medium-haul fl eet, prompting regulators to ground it would record a $5.6bn pretax $65.4bn in the first quarter, soared possible changes to pilot training the capital markets, and revenue Air France may choose Airbus’s A320neo the MAX globally. That was the charge to compensate airlines and to $68.5bn. and other aspects of the MAX. diversification,” the ratings and A220-300, La Tribune reports biggest drop on the Dow Jones lessors, outlining for the first time There’s never been an indefinite The industrial giant’s sprawling company said.