Malaysia steamrolls 1,069 bitcoin mining machines page 10

Tuesday, July 20, 2021

33,769.06 10,696.30 52553.40 1,808.20 Dow -918.79 pts QE -79.67 pts sensex -586.66 pts Gold -0.37 % Microsoft Exchange hack caused by China, allege US and allies page 9 Price percentage Price percentage 25.12 Brent 68.17 -7.37 % WTI 65.87 -8.27 % Silver -2.62 % Markets Fuel network expansion set to fall on COVID-19 boost Woqod’s growth: QNBFS concerns Agencies Woqod targets to add four petrol stations in the second half of 2021 and seven more petrol stations in 2022 New York

Satyendra Pathak Stock markets around the Doha world went through a sell-off on Monday as fears over the Woqod’s ongoing expansion of retail fuel spread of new coronavirus station network should support its fuel and variants hit markets. non-fuel revenue growth gradually, QNB Fi- In the US, the S&P500 in- nancial Services (QNBFS) has said in its lat- dex was trading 1.74 per cent est company report. lower at 7.20pm time, Woqod targets to add four more petrol while the Dow Jones Industrial stations in the second half of 2021 that will Average was down 2.41 percent. raise its network to 111 stations, QNBFS European markets also said. In 2022, the company plans to add sev- closed lower, with the Euro- en more stations to its network that should Stoxx 50 down 2.66 per cent, bring the number of stations to 118. France’s CAC 40 index down “New petrol stations should contribute 2.54 percent. In Asia, the to Woqod retail sales in the second half of Hang Seng index closed 1.84 2021 and 2022. Woqod announced that it per cent lower, and Japan’s has opened two petrol stations since the Nikkei 225 index was down beginning of 2021, bringing the number of 1.25 percent. stations currently operated by the company “The sell-off is all about to 107 from 105 at 2020 year-end,” QNBFS the Delta variant, and inves- said in the report. tors are using this as a perfect “Qatar Airways Group’s planned expan- excuse to push the markets sion is likely to be the foremost long-term lower,” said Naeem Aslam, driver for Woqod’s bottom-line growth. Re- chief markets analyst at bro- moval of the blockade and the World Cup in ker Avatrade. 2022 should also be supportive for jet fuel In the UK, where many volumes longer-term,” the report said. coronavirus restrictions were Analysing the company’s financial results lifted on its so-called “Free- in the second quarter of 2021, the report said, dom Day”, the FTSE 100 index “Woqod’s net profit rose 371.7 percent year- fell 2.34 percent. The pound on-year (yoy) to QR207.9 million. The com- also fell sharply against the pany allocated QR56 million of provisions for dollar to $1.3673. trade receivables in line with IFRS require- Far from giving investors ments during the first half of 2021. It is likely New petrol stations are expected to contribute to Woqod’s retail sales in the second half of 2021and 2022. confidence, the removal of so- to be the major reason behind the deviation cial distancing curbs meant it from our bottom-line forecast.” (eps) amounted to QR0.46 in the first half 2021 against QR9.8 million in the second higher product prices and higher volumes evaporated as sharply rising in- “The net profit for the first half of 2021 of 2021 as compared to QR0.27 in the first quarter of 2020, during when Woqod’s sales and 18.6 percent qoq that may be attribut- fection rates caused disruption excluding minority rights amounted to half of 2020,” the report said. The compa- volumes had declined sharply due to the able to the higher product prices as well,” to operations, said Susannah QR461.1 million, compared to an amount ny’s strong recovery on a yoy basis in gross broad-based lockdowns. the report said. Streeter, senior investment of QR270.2 million achieved in the same profits was mainly due to low base, it said. “Woqod recorded QR4.5 billion in net “We maintain our target price (TP) of and markets analyst at stock- period last year, representing an increase “The company posted QR237.3 million sales in the second quarter of 2021, increas- QR19.8 and ‘market perform’ rating for broker Hargreaves Lansdown. rate of 71 percent. The earnings per share in gross profits in the second quarter of ing 110.5 percent yoy, mainly thanks to now,” it said. (See also Page 10) Pakistan receives record $29.4 bn Oil prices fall 6% after OPEC+ remittances in producers agree to raise output

2020-21 fiscal Agencies London Agencies Pakistan received record Oil prices fell more than 6% in their $29.4 billion remittances dur- largest daily decline since late March ing the financial year 2020-21 on Monday after OPEC+ overcame as non-resident Pakistanis internal divisions and agreed to boost continued to send over $2 bil- output, causing concern about a lion foreign exchange for the crude surplus as COVID-19 infections 13th consecutive month in rise in many countries. June, latest data shows. Brent, the key international oil State Bank of Pakistan, benchmark, fell below $70 to trade the country’s central bank, 6.06 per cent lower at $69.13 per bar- said workers’ remittances rel at 6.20pm Qatar time. West Texas registered a substantial $6.24 Intermediate was 6.75 per cent lower billion, or 27 percent year-on- $31 billion at $66.96 per barrel. year growth, improving the OPEC+ ministers agreed on Sun- country’s external sector po- ● This is the fastest growth day to increase oil supply from Au- sition despite the challenging in remittances since the gust to cool prices that this month hit global economic conditions. financial year 2002-03. their highest level in more than two “This is the fastest growth The government has set years as the global economy recovers in remittances since the finan- $31 billion in remittances from the COVID-19 pandemic. cial year 2002-03,” the central for the present fiscal year The group of members of OPEC bank said. of 2021-22. and allies such as Russia also agreed Oil prices are likely to continue their rise in the long-term as mobility restrictions ease and demand for energy rises. Pakistan received $23 bil- new production shares from May 2022. lion in remittances during the “Longer-term, free and additional pro- “The global COVID situation is ing markets this week, in the longer reporters after the meeting. financialyear 2019-20. The The inflows from EU coun- duction capacities from OPEC+ coun- turning dire again and it understand- run, the ability of OPEC+ once again OPEC continues to maintain its government has set $31 billion tries remained strong as the tries are the key reason why we see oil ably makes investors wary although to overcome their difference is a pos- demand growth forecast for crude at in remittances for the present remittances reached $2.709 moving lower again,” said Julius Baer it must be stressed that restrictions itive for prices,” said Jeffrey Halley, almost 6 million bpd for 2021, leaving fiscal year of 2021-22. billion during 2020-21 com- analyst Carsten Menke. are being eased in other parts of the senior market analyst, Asia Pacific at the estimate unchanged in its July re- The total inflows from the pared to $1.778 billion in the “We remain confident that the world.” Oanda. port for the third consecutive month. Middle East during 2020-21 previous fiscal, showing a oil market is in the final phase of its OPEC+ last year cut output by “If demand falls short of expecta- Total global oil demand is set to were $17.09 billion, account- growth of 52.3 per cent. upcycle.” Goldman Sachs, however, a record 10 million barrels per day tions, OPEC+ more than likely has reach 96.6 million bpd, the group said ing for 58.1 percent of the total Overseas Pakistanis re- said it remained bullish on the out- (bpd) as the pandemic hollowed out the discipline to modify production in its latest monthly market report. remittances sent by overseas siding in the UAE and Saudi look for oil and the agreement was demand, prompting a collapse in pric- targets to support prices as well now, Longer-term, oil prices are likely to Pakistanis during the year. Arabia continued to play the in line with its view that producers es with US oil futures prices at one as necessary,” he added continue their rise as mobility restric- In addition to the Middle lead role as they remitted a “should focus on maintaining a tight point falling into negative territory. Saudi Arabia’s energy minister, tions ease and demand for energy rises. East and Gulf region, the Unit- record $13.77 billion during physical market all the while guiding OPEC+ producers have gradually Prince Abdulaziz bin Salman warned Following the Opec+ decision to ed Kingdom ($4.1 billion), and July-June 2021 compared to for higher future capacity and disin- eased their output curbs, which now about ‘uncertainty’ in the oil markets. boost supply, Brent, the benchmark the United States ($2.7 billion) $12.22 billion in the corre- centivising competing investments.” stand at around 5.8 million bpd. “We’re dealing with uncertainty. under which two thirds of oil glob- also emerged as major con- sponding fiscal period, reflect- But PVM Oil analyst Tamas Varga “Although the intention to in- And if you are dealing with uncer- ally trades, is still headed towards $80 tributors to the remittances in ing a strong 12.68 per cent sounded a note of caution on the pace crease production is a short-term tainty, the first thing you need to do per barrel as demand is set to outpace 2020-21, reflecting year-on- growth despite difficulttimes of the expected recovery of demand negative for oil prices, particularly as is to acquiesce to the concept that you supply, said Giovanni Staunovo, com- year growth of 58 percent de- in the wake of the COVID-19 from the pandemic. it coincides with growth fears sweep- cannot predict uncertainty,” he told modity analyst at Swiss bank UBS. spite the pandemic. pandemic. Economy & Business Tuesday, July 20, 2021 09

Expert commentary GECF member countries shifting Microsoft Exchange towards less carbon intensity hack caused by China, here is more than one way to achieve than US$5 billion into environmental the Paris Agreement targets, and projects in the oil and gas sectors. The Tmore than one way to achieve a low Iranian Ministry of has been carbon future. Although it is projected implementing various programmes, one that renewables and other unconventional of which is to promote the establishment sources of energy may gain a significant of flare gas recovery units in the country’s allege US and allies portion of the energy supply mix in the next oil-rich regions. These projects aim to 30 years, based on the GECF Global Gas prevent the loss of natural gas, protect the Model’s (GGM) calculation, at the GECF we environment, and provide environmentally However, the believe that some concerns may restrict the friendly feedstock for petrochemical plants worldwide commitment to fully substitut- in the country. Moreover, the Associated Biden admin did ing fossil fuels, and in particular natural Gas Gathering Plan (AMAK) is the largest gas. The GGM shows that being committed domestic environmental project in the oil not announce to carbon-neutral targets does not suf- and gas sector, which collects associated pe- any actions ficiently contribute to the greenhouse gas troleum gas (APG) from oilfields and after (GHG) emissions reduction, if not accom- dehydration, injects it into the pipeline for against Beijing panied by feasible policies. further consumption. Years ago, the need to discuss climate • In Iraq, currently, most of its gas Agencies change would not be a given as it is to- output is associated with gas produced at day. Since global warming has become a oil fields and the majority of this is flared. The Biden administration major hazard for the future of the planet, According to an April 2021 report by the and Western allies formally energy transmission as a response to this World Bank, Iraq had the world’s second- blamed China on Monday for a concern is inevitable. To limit warming to largest gas flaring volume last year after massive hack of Microsoft Ex- 1.5°C by 2050-60, many countries agreed Russia, burning around 17.3 billion cubic change email server software and pledged under the Paris Agreement to metres (bcm) of gas in 2020. However, the and accused Beijing of work- set up ambitious targets to reach net-zero country plans to end gas flaring by 2025. ing with criminal hackers in emissions across their regions. According to In this regard, Sinopec and TotalEnergies ransomware attacks and other Climate Action Tracker, 127 countries that intend to work on developing four associ- cyber operations. produce around 63% of global emissions ated gas and projects in Iraq to The announcements, are now committing themselves to adopt collect and refine associated gas produced though not accompanied by net-zero targets. Several explanations fol- from the Ratawi, West Qurna 2, Majnoun, sanctions against the Chinese low to elaborate on this point: Tuba, and Lahis oil fields. government, were intended First, the global energy demand may • In Norway, Equinor has already as a forceful condemnation of A Microsoft computer is among items displayed at a Microsoft store in suburban Boston. outweigh the energy supply from uncon- brought CO2 emissions in the oil and gas activities a senior Biden ad- ventional sources due to increasing con- production down to industry-leading levels. ministration official described nounced charges against four The EU said malicious cyber Beijing to uphold its interna- sumption in energy-intensive sectors, such The company is implementing several as part of a “pattern of irre- Chinese nationals who prose- activities with “significant ef- tional commitments and obli- as power, transportation, and emission reductions measures, sponsible behaviour in cyber- cutors said were working with fects” that targeted govern- gations “and to act responsibly industry. As a long-lived es- which takes into account scope 1 space.” They highlighted the the Ministry of State Security ment institutions, political or- in the international system, tablished industry, up to now and 2 GHG emissions (operated ongoing threat from Chinese in a hacking campaign that ganizations and key industries including in cyberspace.” The oil and gas have played a key basis 100%) and scope 3 GHG government hackers even as targeted dozens of computer in the bloc’s 27 member states alliance said it was determined role in the energy supply mix emissions (use of products, the administration remains systems, including companies, could be linked to Chinese to “actively deter, defend and it is estimated to remain equity share). The company has consumed with trying to curb universities and government hacking groups. The U.K.’s against and counter the full dominant, at least, in the next the ambition of reducing the ransomware attacks from entities. The defendants are National Cyber Security Cen- spectrum of cyber threats.” 15 to 20 years. While this GHG emissions from its oper- Russia-based syndicates that accused of stealing trade se- tre said the groups targeted That hackers affiliated with industry has been subject to ated offshore fields and onshore have targeted critical infra- crets and confidential business maritime industries and naval the Ministry of State Security massive investment and devel- plants by 40% by 2030, 70% by structure. information. defense contractors in the U.S. were engaged in ransomware opment, emerging renewables Dr Hussein Moghaddam 2040 and to near zero by 2050. The broad range of cy- Unlike in April, when pub- and Europe and the Finnish was surprising and concerning may warrant more time and Equinor considers CCS as vital berthreats from Beijing dis- lic finger-pointing of Russian parliament. to the U.S. government, the investment to follow in their predecessor to meet its net-zero target. The company closed on Monday included hacking was paired with a In a statement, EU foreign senior administration official industry’s footsteps. Despite the advance- has extensive experience with CCS opera- ransomware attacks from raft of sanctions against Mos- policy chief Josep Borrell said said. But the attack, in which ment in renewables, to fill the supply gap, tions and is a part of more than 40 research government-affiliated hackers cow, the Biden administration the hacking was “conducted an unidentified American countries will ensure their energy security projects on CCS. that have targeted victims — did not announce any actions from the territory of China company received a high-dol- due to unpredictable dynamics of the ener- • In April 2021, Qatar joined in creat- including in the U.S. — with against Beijing. Nonetheless, for the purpose of intellectual lar ransom demand, also gave gy sector by preserving their supplies from ing a Net-Zero Producers Forum as part of demands for millions of dol- a senior administration offi- property theft and espionage.” U.S. officials new insight into conventional sources, among which natural the countries’ climate commitments. This lars. U.S officials allege that cial who briefed reporters said The Microsoft Exchange what the official said was “the gas is the cleanest and the cheapest. forum is said to be dedicated to develop- China’s Ministry of State Se- that the U.S. has confronted cyberattack “by Chinese state- kind of aggressive behavior Second, since the global population ing long-term strategies to reach global curity has been using criminal senior Chinese officials and backed groups was a reckless that we’re seeing coming out is rising specifically in urban areas, many net-zero emissions. In this context, as part contract hackers who have that the White House regards but familiar pattern of behav- of China.” developing regions may not be able to af- of a new sustainable development strat- engaged in cyber extortion the multination public sham- iour,” U.K. Foreign Secretary The majority of the most ford higher prices of energy generated from egy, Qatar Petroleum (QP) is targeting to schemes and theft for their ing as sending an important Dominic Raab said. damaging and high-profile re- renewables, unless the industry will gener- reduce 25% emissions from its LNG plants own profit, officials said. message. NATO, in its first public cent ransomware attacks have ate economies of scale. To this end, renewa- by 2030. Furthermore, emissions from its Meanwhile, the Justice The European Union and condemnation of China for involved Russian criminal bles require large investments – according upstream operations will be reduced by Department on Monday an- Britain also called out China. hacking activities, called on gangs. to the International Energy Agency, annual at least 15%, and flaring intensity will be clean energy investment worldwide will reduced by 75%, from the 2013 level. The need to be around US$4 trillion by 2030 company is also committed to limiting to reach net-zero emissions by 2050 in methane emissions in its gas value-chain by order to overcome the mismatch that exists setting a methane intensity target of 0.2% Concerns grow as space tourism lifts off between energy demand and the availability by 2025. QP also aims to add more than 4 of energy from various renewable sources. GW of renewable energy in Qatar, which Agencies Ross’ paper found Blue Third, research and development in should reduce CO2 emissions by 5 million Origin’s vertical launch reus- the oil and gas industry have been grow- mt/year. Last but not the least, QP is aim- After years of waiting, Rich- able rocket causes a hundred ing substantially to promote innovation in ing to capture and store some 7 million mt/ ard Branson’s journey to space times less ozone loss and 750 developing new technologies for generat- yr of CO2 from its LNG facilities by 2027. this month on a Virgin Galac- times less climate forcing ing cleaner energy. Increasing efficiency is The company has already included environ- tic vessel was supposed to be magnitude than Virgin’s, ac- one of the main outcomes of such innova- mental considerations in some of its supply a triumphant homecoming. cording to ballpark calcula- tive advancement in the industry that has contracts. Instead, the jaunt attracted tions. been accelerating in recent years. In other • In Russia, NOVATEK has embraced significant criticism -- about But that doesn’t mean it’s words, energy transition not only considers a long-term methane emissions reduction its carbon footprint. totally clean. renewables development, but also implies a target by 2030, mainly to diminish meth- With Jeff Bezos set to “It takes electricity to process of optimising the behaviour of en- ane emissions per unit of production by launch on a Blue Origin rocket make liquid oxygen and liquid ergy systems without necessarily adhering 4% in the production, processing and LNG on July 20, and Elon Musk’s hydrogen,” Ross told AFP. to the complete removal of fossil fuels. And segments. Furthermore, the company has SpaceX planning an all-civil- “You could go back and among fossil fuels, natural gas plays a key plans to reduce GHG emissions per unit of ian orbital mission in Septem- calculate how much electricity role in the development of efficiency. production in the upstream segment by 6%, ber, the nascent space tourism was used to make the propel- The GECF Secretariat strives to favour as well as by 5% per ton of LNG production. industry finds itself facing lant,” he said. “It depends how this opportunity within the framework of Russia is also targeting 20-25% of future tough questions about its en- far back in the supply chain the Environmental Knowledge and Solu- global hydrogen trade. The country has pro- vironmental impact. Virgin Galactic’s SpaceShipTwo uses a type of synthetic rubber as fuel you look.” tions (EKS) initiative that has been estab- jected that it could export up to one million Right now, rocket launch- and burns it in nitrous oxide, a powerful greenhouse gas. The impact of suborbi- lished as a way to support the Paris Agree- mt/yr of hydrogen in 2024, rising to 7mn es as a whole don’t happen tal launches such as those by ment process and the attainment of UN mt/yr in 2035 and between 7.9 and 33.4 often enough to pollute sig- supply chain’s carbon foot- ShipTwo uses a type of syn- Virgin and Blue Origin pale in Sustainable Development Goals. The GECF million mt/yr by 2050. nificantly. print,” it said in a statement thetic rubber as fuel and burns comparison to the impact of Member Countries are in the forefront of To conclude, global challenges require “The carbon dioxide emis- to AFP. it in nitrous oxide, a powerful rockets that achieve orbit. such developments through efficiency- a global determination that goes beyond sions are totally negligible But while transatlantic greenhouse gas. When SpaceX puts four enhancing processes that pave the way for mere promises. Taking sustained, practi- compared to other human flights carry hundreds of peo- The fuel pumps black car- private citizens into space energy transition and carbon reduction in cal, even sluggish, steps is crucial to battle activities or even commercial ple, Virgin’s emissions work bon into upper stratosphere, in September, it will use its various ways, including but not limited to: global warming. Many countries in the aviation,” NASA’s chief cli- out to around 4.5 tons per 30-50 kilometers high. Falcon 9 rocket, which cal- * Reducing methane emissions from OECD have already started moving toward mate advisor Gavin Schmidt passenger in a six passenger Once there, these particles culations show puts out the flaring and waste gases a sustainable economy through the energy told AFP. flight, according to an analysis can have multiple impacts, equivalent of 395 transatlan- * Investing in renewable energy transition. Above mentioned examples indi- But some scientists are published by French astro- from reflecting sunlight and tic flights-worth of carbon * Deploying carbon capture and storage cate that the GECF Member Countries have worried about the potential physicist Roland Lehoucq and causing a nuclear winter ef- emissions. (CCS) been mindful and responsive to the need for longer term harm as the colleagues in The Conversa- fect, to accelerating chemi- “We are living in the era * Investing in blue hydrogen for the energy transition. However, this is industry is poised for major tion. cal reactions that deplete the of climate change and start- * Removing fossil fuel subsidies and just the beginning and they can leverage growth, particularly impacts That’s roughly equivalent ozone layer, which is vital to ing an activity that increases increasing energy efficiency the great opportunities that energy transi- to the ozone layer in the still to driving a typical car around protecting people from harm- emissions as part of a tourism Emissions reduction is a top priority tion provides to develop their economy in poorly understood upper at- the Earth, and more than ful radiation. activity is not good timing,” for the industry and the GECF Secretariat general, and in particular. mosphere. twice the individual annual “We could be at a danger- Annette Toivonen, author of is supporting its members in these efforts. Virgin Galactic, which carbon budget recommended ous point,” said Toohey, who the book “Sustainable Space Some specific examples of how the GECF came under fire in op-eds on to meet the objectives of the wants more scientific inves- Tourism,” told AFP. Member Countries have been recently ac- CNN and Forbes, as well as on Paris climate accord. tigations into these effects The world is far more tive in this area: social media, for sending its “The issue here is re- before the launches become aware of the climate crisis • Egypt has launched an energy diversi- billionaire founder to space ally one of disproportionate more frequent. now than when these compa- fication strategy, known as the 2035 Inte- for a few minutes in a fossil impacts,” Darin Toohey, an Virgin has said it wants to nies were founded in the early grated Sustainable Energy Strategy, which fuel-guzzling spaceship, says atmospheric scientist at the conduct 400 flights a year. 2000s and that could encour- aims to step up the development of renew- its carbon emissions are about University of Colorado, Boul- Compared to Virgin Ga- age businesses to look at ways able energy and energy efficiency in the equivalent to a business-class der told AFP. lactic’s SpaceShipTwo space- to minimize pollution through country. Egypt aims to produce 20% of its ticket from London to New “I actually grew up on the planes, Blue Origin’s are much cleaner technologies to get electricity using renewable sources by 2022 York. space program and that got cleaner, according to a recent ahead of the problem. and 42% by 2035. Furthermore, Egypt has The company “has already me into science.... but if some- paper by scientist Martin Ross “Who would want to be a committed to reducing energy subsidies taken steps to offset the car- one offered me a free ride, I of Aerospace, which Bezos’ space tourist if you can’t tell and adjust the prices to international levels. — By Dr Hussein Moghaddam, bon emissions from its test would be very nervous taking company plugged on Twitter. people you were a space tour- • In order to achieve a desirable level Senior Energy Forecast Analyst, flights and is examining op- it because I would know that That’s because it burns liq- ist?” argued Toivonen, who of environmental protection and sustain- Energy Economics and Forecast- portunities to offset the car- my own footprint is way larger uid hydrogen and liquid oxy- lectures at Finland’s Haaga- able development, Iran has invested more ing Department, GECF Secretariat bon emissions for future cus- than it should be,” he said. gen, which combusts as water Helia University of Applied tomer flights, and reduce our Virgin Galactic’s Space- vapor. Sciences. 10 Tuesday, July 20, 2021 Economy & Business Travel stocks slump, Investors dump stocks and buy with airlines, cruises, hotels bearing brunt bonds as virus fears flare again Agencies Airlines say domestic leisure travel is back to pre- Air travel in the United pandemic levels, but inter- Stocks fall sharply as worries of COVID-19 spike sweep from Wall St. to Sydney States hit another pandem- national travel and business ic-era record over the week- trips both remain sharply Agencies dip in stocks as merely an op- end as vacationers jammed lower than in 2019. That is portunity to buy low. Plus, airports, but shares of air- especially bad for American, Resurgent pandemic wor- the general expectation is still lines, cruise lines, hotels and United and Delta, which get ries are knocking stocks lower for the economy to continue almost anything else related a sizeable chunk of revenue from Wall Street to Sydney on growing. to travel tumbled Monday from international and Monday, fueled by fears that Barry Bannister, chief eq- on growing concerns about business travel. faster-spreading variants of uity strategist at Stifel, was highly contagious variants Airlines are frustrated the virus may upend the econ- more pessimistic. He says the of coronavirus. that restrictions on inter- omy’s strong recovery. stock market may be in the The Transportation Se- national travel haven’t been The S&P 500 was 2% lower early stages for a drop of as curity Administration said relaxed more quickly. The in afternoon trading, after set- much as 10% following its big it screened more than 2.2 rise in coronavirus infec- ting a record just a week ear- run higher in prices. The S&P million people at airport lier. In another sign of worry, 500 nearly doubled after hit- checkpoints on Sunday, the yield on the 10-year Treas- ting its bottom in March 2020. the highest number since ury touched its lowest level “The valuations, they just early March 2020, when the in five months as investors got too frothy,” he said. “There pandemic was beginning to scrambled for safer places to was just so much optimism crush travel in the U.S. That put their money. out there.” topped a record set just Not encouraging The Dow Jones Industrial The bond market has been two days earlier and was Average was down 885 points, louder and more persistent the fourth peak recorded in Investors weren’t or 2.6%, at 33,802, as of 12:58 in its warnings. The yield on July. celebrating the latest p.m. Eastern time. The Nas- the 10-year Treasury tends to However, Sunday’s evidence of a recovery in daq composite was 1.5% lower. move with expectations for mark was still 18% lower travel since vaccines Airlines and stocks of economic growth and for in- than on the comparable against COVID-19 became other companies that would flation, and it has been sink- Sunday in 2019, according widely available in the US get hurt the most by potential ing since late March, when it to the TSA. Stocks were down broadly COVID-19 restrictions were was at roughly 1.75%. It fell to Investors weren’t cel- out of concern over rising taking some of the heaviest 1.19% Monday from 1.29% late ebrating the latest evidence infections in many losses, similar to the early Friday. of a recovery in travel since countries, and airline and days of the pandemic in Feb- Analysts and professional vaccines against COVID-19 cruise line stocks were hit ruary and March 2020. Mall investors say a long list of rea- became widely available in owner Simon Property Group sons is potentially behind the the U.S. Stocks were down especially hard. Shares of fell 5.9%, and cruise operator Specialist Gregg Maloney works on the floor of the New York Stock Exchange, Monday, July 19, 2021. sharp moves in the bond mar- broadly out of concern over American Airlines, Delta Air Carnival lost 5.5%. ket, which is seen as more ra- rising infections in many Lines and United Airlines The drop also circled the of the world. sinking to the lowest levels a 5% pullback from a record tional and sober than the stock countries, and airline and tumbled more than 4%. world, with several European Experts are saying Indone- since January. Cases are on high was in October. market. But at the heart is the cruise line stocks were hit markets sinking roughly 2.5% sia has become a new epicenter the rise in all 50 states, Several analysts pointed to risk the economy may be set to especially hard. and Asian indexes down a bit for the pandemic as outbreaks Localized coronavirus that backdrop of high prices slow sharply from its current, Shares of American Air- tions — the U.S. daily rate less. The price of benchmark worsen across Southeast Asia. surges are starting to affect and very calm movements for extremely high growth. lines, Delta Air Lines and of new reported cases has U.S. crude, meanwhile, sank Meanwhile, some athletes heavily unvaccinated commu- weeks while dissecting Mon- Besides the new variants United Airlines tumbled more than doubled over more than 6% after OPEC have tested positive for COV- nities in places like Missouri day’s drop. of the coronavirus, other risks more than 4%, and South- the past two weeks, and the and allied nations agreed on ID at Tokyo’s Olympic Village, and Arkansas, where hospi- “It’s a bit of an overreac- to the economy include fading west was off more than 3% World Health Organiza- Sunday to eventually allow with the Games due to open tals are running out of space tion, but when you have a pandemic relief efforts from in midday trading. Shares tion says the delta variant for higher oil production this Friday. again. Almost all of the hos- market that’s at record highs, the U.S. government and a of Boeing, which was just is causing cases and deaths year. Even in the United States, pitalized COVID patients are that’s had the kind of run Federal Reserve that looks set starting to see a recovery in from COVID-19 to rise Increased worries about where the vaccination rate is unvaccinated. More than 68% we’ve had, with virtually no to begin paring back its as- orders for airline jets, fell worldwide after a period the virus may seem strange generally higher, people in Los of the U.S. adult population pullback, it becomes extreme- sistance for markets later this nearly 5%. of decline — could delay to people in parts of the world Angeles County once again has received at least one dose ly vulnerable to any sort of bad year. Shares of cruise lines moves to make travel easier. where masks are coming off, must wear masks indoors re- of vaccine and 59% are fully news,” said Randy Frederick, Monday’s selling pressure fell to levels last seen be- After massive losses or already have, thanks to gardless of whether they’re vaccinated. And about a dozen vice president of trading & de- was widespread, with 95% fore vaccines were avail- last year, airlines are doing COVID-19 vaccinations. But vaccinated following spikes states have yet to vaccinate 40 rivatives at Charles Schwab. of the stocks in the S&P 500 able to Americans. Carnival better, with more Ameri- the World Health Organiza- in cases, hospitalizations and percent of their population. “It was just a matter of what lower. Even Big Tech stocks and Norwegian Cruise Line cans booking flights. Delta tion says cases and deaths deaths. Financial markets have that tipping point was, and it were falling, with Apple down Holdings tumbled more reported a second-quarter are climbing globally after a Across the country, the been showing signs of in- seems we finally reached that 2.9% and Microsoft 1.6% low- than 5%, and Royal Carib- profit last week, thanks period of decline, spurred by daily number of COVID has creased concerns for a while, this morning” with worries er. Such stocks seemed nearly bean was down more than to federal pandemic re- the highly contagious delta soared by nearly 20,000 over but the U.S. stock market had about the delta variant. immune to virus fears during 4%. The hotel sector was lief. United, American and variant. And given how tightly the last two weeks to about remained largely resilient. He and other analysts are earlier downturns, rising on hammered too, and shares Southwest report results connected the global economy 32,000. The vaccine campaign The S&P 500 has had just two optimistic stocks can rebound expectations they’ll continue of Airbnb also slipped. this week. is, a hit anywhere can quickly has hit a wall, with the average down weeks in the last eight, quickly. Investors have been growing almost regardless of affect others on the other side number of daily inoculations and the last time it had even trained recently to see every the economy’s strength. Zoom to buy cloud-based call centre operator Five9 in $20 bn deal

Agencies office meets and socialise. said in a statement on Sunday. by the boards of both compa- around US$106 billion. The San Jose, California- The acquisition will com- nies, Five9 stockholders will Zoom rose 45 per cent over Zoom Video Communications based company is now shift- plement Zoom Phone service, receive 0.5533 shares of Class the past year, as conferencing announced a US$14.7 billion ing focus to its two-year-old an alternative to legacy phone A common stock of Zoom for platforms, which also include (S$20 billion) all-stock deal cloud-calling product Zoom offerings, by adding Five9’s each share of Five9, it added. Cisco Systems Inc’s Webex to buy cloud-based call centre Phone and conference-hosting business customers and com- Based on the July 16 clos- and Microsoft Teams, have operator Five9 Inc in its larg- product Zoom Rooms as bigger bining its contact centre soft- ing share price of Zoom Class A seen a surge in usage due to est-ever acquisition, as com- players Facebook and Alpha- ware to optimise customer in- common stock, this represents the coronavirus pandemic that petition intensifies in its core bet’s Google amp up their video teractions across channels, it a price of US$200.28 for each has spurred a seismic shift to video-conferencing sector. products. added. share of Five9 common stock, online working, learning and The teleconferencing ser- “The acquisition is expected Five9’s customers include or nearly a 13 per cent premi- socialising. vices provider has become a to help enhance Zoom’s pres- Under Armour, Lululemon um, and an implied deal value Global spending on cloud- household name and investor ence with enterprise custom- Athletica and Olympus Corp, of about US$14.7 billion. based conferencing is forecast favorite in the year since the ers and allow it to accelerate its according to its website. Shares in Zoom, which to reach US$5.41 billion this coronavirus pandemic, as busi- long-term growth opportunity Five9 will become an oper- become a president of the com- pected to close in the first half went public in 2019, rose 1.4 year, up from US$5.02 billion nesses and schools adopted its by adding the US$24 billion ating unit of Zoom and its chief pany, staying on as chief of the of 2022, it said. per cent to US$361.97 on Fri- in 2020, according to tech con- services to hold virtual classes, contact centre market,” Zoom executive Rowan Trollope will unit after the deal, which is ex- Under the pact, approved day, valuing the company at sultancy Gartner.

Owner steals energy Tencent buys UK’s Sumo Malaysia steamrolls 1,069 bitcoin mining machines Agencies

Agencies in the mining of bitcoin and other leased a video of the police steam- UK videogame developer cryptocurrencies. The coins are rollering the mining rigs in Miri. Sumo has been bought by a Authorities in Malaysia arrest- mined by computers that process In May, UK police officers Chinese tech giant Tencent for ed the owners of a cryptocurrency complex algorithms in halls that forced their way into an enormous £919m. mining farm for stealing energy, span the area of several football bitcoin mine at the Great Bridge The deal brings together shut down the unit and steamroll- pitches. In April, researchers at Industrial Estate in Sandwell, the Sumo’s portfolio of games ered 1,069 of its mining machines Cambridge University estimated West Midlands, where they found with Tencent’s more high-pro- worth 5.3 million Malaysian ring- that the electricity consumption a large bank of around 100 com- file titles. git ($1.25m), reports said. of the Bitcoin network is almost puters used for mining. Tencent is one of the larg- The raid was a joint opera- 120 terawatt-hours per year. That “My understanding is that est video games publishers tion carried out by the police and is more than the UAE’s energy mining for cryptocurrency is not in the world and has a stake Sarawak Energy Berhad in the consumption at 119.45 terawatt- itself illegal but clearly abstracting in the two popular Battle Malaysian city of Miri, according hours, and on course to overtake electricity from the mains supply Royale-style games: Fortnite to local newspaper The Star. The Pakistan. to power it is,” Sergeant Jennifer and PlayerUnknown’s Battle- operation took place between Feb- “A total of six people have been Griffin, of Sandwell Police, said in grounds (PubG). ruary and April and those arrested successfully charged under Section a statement. Sheffield-based Sumo, were charged with stealing energy, 379 of the Penal Code for electric- In May, Iran banned the min- which has 14 studios in five the newspaper added. ity theft and have been fined up to ing of cryptocurrencies such as countries and employs more The arrests follow a crackdown 8,000 Malaysian Ringgits [$1,896] Bitcoin for nearly four months than 1,200 people, released against bitcoin miners in China and jailed for up to eight months,” as part of efforts to reduce power video games including Hot- in June, when authorities, con- Miri police chief Hakemal Hawari As many as 1,069 bitcoin mining machines were destroyed in the Malaysian cuts caused by surging electricity shot Racing, Sackboy: A Big cerned about the environmental said. city of Miri. demand during the hot and dry Adventure and WST Snooker impact of cryptocurrency mining, “The electricity theft for min- summer. last year. closed down operations in Sichuan ing bitcoin activities has caused to illegal electricity supply connec- git ($1.98m) worth of electricity In June, Iranian authorities Carl Cavers, chief execu- province. frequent power outages and in tions,” he added. due to Bitcoin mining operations. seized 7,000 computers at an ille- tive of Sumo, said the “oppor- Electricity is a primary input 2021, three houses were razed due The SEB said it lost 8.4m ring- Local news outlet Dayak Daily re- gal cryptocurrency farm in Tehran. tunity to work with Tencent is one we just couldn’t miss”. Tuesday, July 20, 2021 11 Economy & Business What China expects from businesses: Total surrender Unlike regulators in Europe and the US, Beijing is using the guise of antitrust to bring powerful tech companies into line with its priorities NYT

hen Pony Ma, head of the Chinese in- ternet powerhouse Tencent, attended a group meeting with PremierW Li Keqiang in 2014, he com- plained that many local governments had banned ride-sharing apps in- stalled on smartphones. Li immediately told a few minis- ters to investigate the matter and re- port back to him. He then turned to Ma and said, “Your example vividly demonstrates the need to improve the relationship between the government and the market.” By then, Tencent had invested $45 million in a ride-hailing startup called Didi Chuxing, which later be- came a model in the government’s push to digitize and modernize tra- ditional industries. When President Xi Jinping met with global tech lead- ers in Seattle in 2015, Didi’s founder, Cheng Wei, then 32 years old, joined Amazon’s Jeff Bezos, Apple’s Tim Cook and Ma at the gathering. But the relationship between Bei- jing and the tech sector has splintered badly in the past year. Didi is now a target of the government’s regula- tory wrath. Days after the company’s initial public offering in New York last month, Chinese regulators pulled its apps from app stores on the grounds of protecting national data security and public interests. At the heart of the Didi fiasco, and to a large extent China’s increasingly aggressive antitrust campaign, is the question of what Beijing expects from private enterprises. The answer is a lot more complicated than in the United States or Europe. China’s Big Tech wields as much power as the American tech giants in the national economy. Like their by Jialun Deng/The New York Times American counterparts, the Chinese companies have appeared to engage The Communist Party made it is managing the geopolitical tension spent 12 hours as a meal-delivery After the deaths of two of his two foundations. in anti-competitive practices that hurt clear last year that it needs “politically with the United States. worker, only to make about $6. That employees and much online criti- What do all of these actions have consumers, merchants and smaller sensible people” in the private sector As China’s economic growth set off widespread discussions about cism, Colin Huang, founder of the e- to do with antitrust and curbing the businesses. That deserves scrutiny who will “firmly listen to the party slows and opportunities dwindle, the how badly online platforms treated commerce platform Pinduoduo, said power of Big Tech? Not much, di- and regulation to prevent any abuse and follow the party.” They should country’s rising inequality is becom- their workers. in March that he would step down rectly. But the companies and entre- of power. contribute more to the longevity of ing a time bomb in the eyes of the Tencent, Didi and e-commerce to make way for the next generation. preneurs are effectively telling the But it’s important to keep in mind the Communist Party and help make party, which is paranoid about social giant Alibaba — known as “platform” He is 41 and was just named China’s government that they know who the that the Chinese tech companies op- China great again, the party said. unrest and any skepticism about its companies — are now second-class second-richest person. master is and that they need to do erate in a country ruled by an increas- The message, people in the tech legitimacy. And the tech companies citizens in the eyes of the government, In May, Zhang Yiming, 38, found- things that at least look as if they will ingly autocratic government that de- industry said, is that businesses need are increasingly being blamed for the a Beijing-based venture capitalist told er of ByteDance, the parent company reduce social inequality and discon- mands the private sector surrender to prove that they’re useful and help- wealth gap, with their founders criti- me. (First-class companies develop of TikTok, announced that he would tent. with absolute loyalty. So unlike the ful in advancing the government’s cized as villains who take advantage “real” technologies such as semicon- also resign as CEO. A month later, he The other “sin” Didi committed is antitrust campaigns that European goals while avoiding causing trouble. of consumers and force their employ- ductors and artificial intelligence that unveiled a $77 million donation to that it went public in New York at a and American officials are pursuing in Didi didn’t heed the message, ees to work long hours. can help China become more self-re- set up an education foundation in his time when the geopolitical tension be- their regions, China is using the guise these people said. They were sur- Beijing was not happy last year liant technologically, he said.) For the hometown. The Wall Street Journal tween China and the United States is of antitrust to cement the Communist prised that Didi defied some regula- when some big internet companies in- government, the platforms have too also reported that he shelved ByteD- intensifying and the two countries are Party’s monopoly of power, with pri- tors’ objections and rushed its IPO vested heavily in apps that sell vegeta- many users, too much data, too much ance’s IPO plans in March after meet- fighting for tech supremacy. vate enterprises likely to lose what’s through in the current regulatory en- bles to local residents. That’s because capital and too much power, he said. ing with regulators. There’s a growing concern in Chi- left of their independence and be- vironment. the apps could replace the mom-and- In the past six months, the tech A business unit of Tencent said na that many tech companies, backed come a mere appendage of the state. For some government officials, pop vegetable stands where many giants and some star entrepreneurs last month that its employees were by Western venture capital firms and The developments at Didi amount Didi’s U.S. listing was “yang feng yin lower-income people make a living. have pledged their loyalty and made now required to leave the office by 6 listed in New York, could become eco- to “a shock-therapy type of enforce- wei” (“to comply publicly but defy Beijing also went after Ant Group, gestures with money and resigna- p.m. Wednesdays and 9 p.m. other nomic pawns if bilateral relations de- ment,” said Benjamin Qiu, a partner privately”). The phrase is revealing a financial technology giant controlled tions. weekdays. ByteDance announced teriorate. China has announced that it at the law firm Loeb & Loeb in Hong because it is often used to describe a by billionaire Jack Ma, partly because Tencent announced in April that this month that it would abolish the will require domestic tech companies Kong. “We could see more control by subordinate’s betrayal of a superior. it believed that Ant made it too easy it would spend $7.8 billion on green requirement of working Saturdays to submit to a cybersecurity checkup the state, with in-effect data nationali- “At a moment like this, internet for young people to take out personal energy, education and village revitali- every other week, a common practice before they list their shares abroad, zation as the end result.” companies that are ‘politically incor- loans, building up social discontent. zation. at many Chinese companies. which will probably thwart most IPO Americans and Europeans who rect’ will only meet a dead end,” Li The government cracked down In April, five days after Xi visited After the Didi crackdown, simi- plans. are, understandably, frustrated with Chengdong, an internet consultant on the online education industry, too, his alma mater, Tsinghua University, lar announcements kept coming. “China needs to prepare for the their regulators’ lack of progress in and investor, wrote of Didi in a social which officials believe profits from in Beijing, Wang Xing, founder of the JD.com, an e-commerce platform, worst-case scenario,” a Weibo user, reining in Big Tech shouldn’t be too media post. playing on the anxieties of parents. meal-delivery company Meituan and said Tuesday that it would increase Xiong Weizhou, commented on his impressed by how swiftly Beijing is For the companies, it’s helpful to That, in turn, has increased the cost also a Tsinghua graduate, set up a its employees’ average annual salary verified Weibo account. “It could be a bringing its tech titans to heel. Like know Beijing’s priorities. Domesti- of raising children, thus jeopardizing foundation at the university. In June, to 16 months of pay from 14 months. war with Taiwan or sanctions by the many things in China, efficiency cally, that is to reduce inequality and Beijing’s new policy of encouraging Wang donated shares that were worth On Friday, Lei Jun, founder of the U.S. and Europe. Important Chinese comes at the cost of law and due pro- promote what the party calls “collec- couples to have more than one child. more than $2 billion to his own foun- smartphone maker Xiaomi, donated companies shouldn’t become the na- cess. tive prosperity.” Internationally, it In April, one government official dation. shares worth more than $2 billion to tion’s soft underbelly.”

Qatar’s industrial production up 6% in May as mining output grows Tribune News Network and 1.7 percent year- on- year. by 2.2 percent. and chemicals and chemical Doha The m-o-m climb in min- According to the Planning The manufacturing com- products by 1.2 percent. As ing output was driven by in- and Statistics Authority the ponent of the IPI in May for printing and reproduction Qatar’s industrial produc- crease production of crude oil showed a 7.7-percent increase of recorded media, the pro- tion in May rose 6 percent and natural gas, by 5.9 per- key Industrial Production when compared with that in duction was stopped in May from April mostly due to a cent. However, “other mining Index stood at 105.8 the same month last year. 2020 due to the coronavirus jump in the mining output, and quarrying” group showed points in May, up 1.7 per- The fall was caused main- pandemic. which includes oil and gas a month-on-month decline of cent from a year ago ly by heightened productions Electricity output — production. 3.8 percent. of cement and other non- which accounts for 0.7 per- According to the Plan- Qatar’s manufacturing metallic mineral products by cent of IPI — increased 36 ning and Statistics Authority output— which has a rela- cent, beverages by 5.3 percent 55.3 percent, basic metals by percent in May month-on- (PSA), the key Industrial Pro- tive weightage of 15.2 percent and food products by 0.4 per- 29.6 percent, refined petrole- month and 9.4 percent year- duction Index stood at 105.8 in the index — rose in May, cent. However, manufactur- um products by 25.3 percent on-year. points in May, up 1.7 percent showing a 5.5 percent climb ing output in three groups and rubber and plastics prod- Similarly, water produc- from a year ago. from April. PSA attributed went down — printing and re- ucts by 16.9 percent. tion (desalination), which The mining component of this to rise in the manufacture production of recorded media However, manufactur- carries a weightage of 0.5 the index, which has a rela- of refined petroleum products by 8.8 percent, cement and ing output went down in percent, showed an increase tive weightage of 83.6 per- by 7.2 percent, basic metals other non-metallic mineral three groups year-on-year — of 7 percent month-on- The mining component of IPI, which has a relative weightage of cent, showed an increase of by 7 percent, chemicals and products by 5.3 percent and beverages by 10.9 percent, month and a decrease of 19.8 83.6 percent, showed an increase of 5.9 percent in May m-o-m. 5.9 percent month-on-month chemical products by 5.9 per- rubber and plastics products food products by 7 percent percent year-on-year.