●Issue 14 ● Business & Finance Weekly ● August 03-09, 2020

MSCI WORLD INDEX 2.21 %▲

2.08 % 3.80 % 2.45 % 2.47 % 1.30 % 1.33 % 2.86 % 1.27 % 2.94 % 2.2 8 % WORLD JSE/Top40 DJIA S&P500 NASDAQ ASX200 SSECOMP NIKKEI225 NIFTY50 DAX FTSE100

WORLD MARKETS WEEKLY REVIEW KEY FACT Indices, Manufacturing PMIs, The huge explosion was filmed by onlookers Jobs UP but Morale is DOWN REMITT mprovement in economic data strictions on two Chinese apps, continued to provide support to Tencent's WeChat and ByteDance's world stock markets this week. Tiktok in the US. Investors drew en - Remittances across the I Investors were pleased with man - couragement from July’s Caixin world could decline by ufacturing PMIs out of the US, Japan /Markit manufacturing PMI, which $108.6 billion this year as and Eurozone. Jobs growth in Canada climbed to nearly a decade-high read - job losses mount and em - and the US also came up against the ing of 52.8 from June’s 51.2. China ployers trim payrolls, negative sentiment also posted an unexpectedly strong the Asian Development surrounding height - 7.2% jump in exports for July. In Bank said in the report “This scene ened Washington-Bei - Japan, stocks rallied. In Australia, the released on Monday. jing tensions. ASX managed to add 1.3% for the reminds us of Kyriaki AMERICAS: week. (Asia/Pac p.5) FUNDING Balkoudi Canadian equities re - what happened Editor EUROPE: European shares rose on ceived a boost from signs that an economic recovery may improving labour market in the coun - be gaining traction. Eurozone's serv - in Hiroshima try, bringing S&P / TSX Composite ices PMI strengthened to 54.7 in July Index back to levels not seen since the Fintech funding in - while the manufacturing PMI rose to creased 17% QoQ to and Nagasaki” first week of March. Investors mostly 51.8. In Europe's largest economy, the $9.3B in Q2’20. How - ignored a resumption of Canada-US Ifo Institute said the German car in - the Governor of Beirut told Sky News trade tensions. In the US, jobs growth dustry shows first recovery signs. The ever, monthly deal activ - Arabia after the explosion. and other encouraging economic data country's composite PMI rose in July ity hit a fresh low of 127 ● EASTERN ME lifted stocks which extended the pre - while German manufacturing PMI hit deals in April before vious week's gains. The US economy Beirut, Lb: 4 Aug., Port Area Around 6: 00 pm its highest level since Dec 2018. (Eu - picking up the pace in Death toll: more than 135, Injured: 6000 added 1.76 million jobs in July, beat - rope p.6) June, which saw 141 ing estimates. But the jobs market is homeless: 30 0K Property damage: US $ 10–15 bn still burdened by the abrupt shuttering The better-than-expected reports deals, according to a re - of the U.S. economy. seemed to further encourage investors. port by CB Insights. massive explosion rocked Beirut on Stocks’weekly gains also came de - But all that glitters isn’t always golden. Tuesday, flattening much of the city's spite a rise in anxiety over the lack Uncertainty, conflicts, trade tensions, EM A port, damaging buildings across the cap - of conclusive progress toward an ad - continuation of lockdowns, masks ital and sending a giant mushroom cloud into ditional fiscal stimulus congressional everywhere have turned people's the sky. At least 150 people are confirmed dead, package. (Americas p. 4) morale down. Economy is not in - and thousands more are injured in one of the vestors only. It's something more com - biggest non-nuclear explosions in history. And ASIA/PAC: Most markets in the ● EU: Cele plex. One thing is the data and another Portfolio flows to Emerg - it came as the country teeters on economic col - region climbed. Mainland Chinese thing is the human morale. And peo - ing Markets (EM) stood lapse, with the currency losing about 90% of its markets posted solid gains, even after ple's morale is down even if indices at $15.1bn in July, accord - value and the nation dealing with widespread declining on Friday on news that the turn higher. And if people's morale is ing to the Institute of In - food insecurity. Many have accused the author - Trump administration tightened re - down then the economy is down. ternational Finance (IFF) ities of corruption, neglect and mismanagement. Equity and debt inflows People engaged in protests and stormed several were $1.9 bn and 13.2 bn. government's buildings. JAPAN SERVICES PMI EM x/ China equity flows post marginal gains. Prime Minister called for an early parliamentary election. Information Minister 45.4 pt Manal Abdel-Samad and Environment Minister JULY 2020 GOLD Damianos Kattar stepped down on Sunday. The highest reading (Reuters: Mohamed Azakir) in five months, amid a gradual recovery Gold closed above in domestic demand $2000 an ounce for the first time this week, changing hands at $2040 Source: au Jibun Bank per ounce in early trad - ing on Wednesday. .2.P AFRICA TOPICS IN BRIEF MARKETS REVIEW •Law & Crime MSCI South Africa’s Public Protector, the Mixed results as ZSE resumes country's anti-corruption watchdog, ▶ South Africa -0.20 % said on Monday it was investigating trading after a Month irregularities in coronavirus-related ▶ EFM Africa EX SA 1.76 % tenders at least in three provinces. African equities finished in a mixed by 0.20%. Markets in the region fashion on Monday as the Zimbab - continued their mixed performance (Note: Weekly Change %) •Politics & Elections weStock Exchange (ZSE) resumed on Wednesday. 's EGX30 Mauritanian President Mohamed trading after it was halted in late added 0.79% while Johannesburg's NEWS TO WATCH Ould Ghazouani appointed public June. Botwana's DCI advanced ASI jumped 2.45% and Malawi's administrator Mohamed Ould Bilal as 0.10%. Dar Es Salaam's ASI weak - ASI fell 0.26%. Nigeria's ASI Foreign investors desert Prime Minister on Thursday after ened 1.81%. Johannesburg's ASI gained 0.16%. Namibia's Overall the government of previous Prime grew 0.19%. Casablanca's MASI Index spiked 2.18%. 's SA’s bond market Minister Ismail Ould Bedde Ould was lower by 1.03%. Malawi's ASI TUNINDEX grew 1.20%. Foreign investors are losing interest in Cheikh Sidiya resigned hours earlier. jumped 2.15%. Nigeria's ASI Uganda's ASI depreciated by South Africa's bonds, having sold a net •Disasters&Accidents moved up 0.29%. Namibia's Over - 1.21% while Zimbabwe's ASI R54 billion ($3.1 billion) of the debt this all Index was down 0.09%. In plunged 2.72%. On Thursday year, according to data by JSE Ltd. -Mauritius declared a state of environ - Mauritius, the ASI depreciated by stocks swung between gains and Non-resident bond holdings dropped to mental emergency on Saturday after 0.06%. ZSE ASI shed 4%. Equities losses again. Botswana's DCI de - 30.1% as of July 31, from 30.6% the the Japanese-owned ship MV finished in a mixed fashion on clined 0.19%. Dar Es Salaam's ASI previous month and as high as 37.3% Wakashio ran aground offshore days Tuesday. Dar Es Salaam's ASI moved up 0.29% and Egypt's in January, National Treasury data ago and began spilling tons of fuel. moved up 0.67%. Egypt's EGX30 EGX30 rose 1.06%. Johannes - show. On March 27, Moody’s Investors Shipping websites say the Wakashio rose 0.19% while Johannesburg's burg's ASI ticked up 0.05% and Service downgraded South Africa's built in 2007 was able to carry ASI climbed 0.75%. Malawi's ASI Malawi's ASI ticked down 0.01%. long-term foreign-currency and local- 203,000 tonnes and a length of 299.95 ticked down 0.01%. Nigeria's ASI Nigeria's ASI gained 0.19%. currency issuer ratings to Ba1 from metres (984 feet). Mauritius boasts gained 0.31%. Nairobi's ASI was Nairobi's ASI jumped 2.03%. Baa3. A week later, ratings agency some of the finest coral reefs in the off 1.12%. Namibia's Overall Index Namibia's Overall Index grew Fitch downgraded the country deeper world and relies heavily on its seas for moved up 0.41%. In Mauritius, the 0.19%.Uganda's ASI was off into "junk" territory. On April 30, S&P its food and tourism industries. ASI weakened 0.28% while 0.27% while Zimbabwe's ASI Global Ratings followed suit. The -African countries send support to Tunisia's TUNINDEX grew slumped 2.14%. Markets headed bonds exited indices tracking invest - , in light of the devastating 0.36%. Uganda's ASI depreciated into the weekend on a mixed note. ment-rated debt. explosions in Beirut Tuesday evening. sends humanitarian Making Finance Work aid to the Middle Eastern country MAJOR INDICES WEEKLY PERFORMANCE % change for Africa through 4 planes, through 8 planes. Lebanese sub-communities in COTE D'IVOIRE BRVM COMP 0.82% , EGYPT EGX30 2.06% Making Finance Work for Africa Senegal and Cote d’Ivoire, are partic - KENYA NSE20 -2.94 %, MOROCCO MASI 0.28%, NAMIBIA (MFW4A), an initiative to support the ipating in a different way. FTSE/NSX OI 1.8%, NIGERIA ASI 1.41%, SOUTH AFRICA development of African financial sec - JSE/TOP40 2.08%, TANZANIA DSE ASI 1.14%, TUNISIA tors, last week hosted a webinar in part - •Armed Conflicts TUNINDEX 1.23%, UGANDA ASI -4.29 %, ZAMBIA LSE ASI nership with KPMG International. The & Attacks 0.00% , ZIMBABWE ZSE IND -16.43% webinar examined the strong relation - South Africa, Cote d'Ivoire and Equa - ship between improved corporate gov - torial Guinea have become more AFRICAN BUSINESS HIGHLIGHTS ernance and the development of the peaceful in the past year, but the situ - financial sector in all its subsets Thierry ations in Benin and Niger have Mbimi, Partner & Head of Financial deterioriated, according to the Global CRYPTO Services Advisory at KPMG, told par - Peace Index (GPI) for 2020. ticipants: "Corporate governance ▪ELIGMA partners with QUIDAX should be to the executive management CHART of the WEEK what Central Banks and regulators are lovenia●n CREDligma, creator of the to the financial system." Where regu - 49.6 pt S GoCrypto payment platform, and lators are behind the curve, corporate Quidax, the leading African cryptocurrency policies can take the lead in creating exchange, started a partnership that will enable more robust corporate governance people to buy products and services in Africa structures, he said. July 2020 through the use of GoCrypto. The partners•hipK will enable merchants to ac - Nigeria's economy to cept crypto payments and to receive settle - Source: IHS MARKIT ments in their local currency. In Africa, the first grow 3.1% in 2021 local currency will be Nigerian Naira (NGN). Nigeria economy will bounce back ● Egypt Non-Oil Private Buchi Okoro (pictured), Co-founder and CEO at Quidax, stated: “Our with growth moving up to 3%, at the Sector PMI partnership with GoCrypto helps us answer a question we get so many end of 2021, Vice President Yemi Os - The seasonally adjusted IHS Markit times: ‘Can IT srpaen nd crypto?’ We are proud to be playing a role in answer - inbajo said on Friday with the imple - Egypt Purchasing Managers' Index ing that question.” Commenting on the partnership, Dejan Roljić, Eligma mentation of the government's increased to 49.6 in July, compared CEO, said: Economic Sustainability Plan and pri - to 44.6 in June, slightly down from “The partnership with Quidax, the leading African cryptocurrency ex - vate sector collaboration. In June, the the neutral 50.0. This was the twelfth change, marks an important milestone for the GoCrypto payment scheme IMF said the Nigerian economy will straight month of contraction in the and opens the● dWooe r for payments through GoCrypto in Nigeria and Africa. contract by 5.4% in 2020. The projec - non-oil private sector but the softest GoCrypto’s presence on the third continent in a row shows that cryptocur - tion was lower than the 3.4% negative in the current sequence, as key parts rencies are becoming a highly relevant payment method.”The number of growth the Fund had estimated for the of the economy such as tourism and sites with the GoCrypto system is steadily increasing. The system is cur - African country in April. hospitality started to reopen. rently available in 13 countries.

P.2 03-09 Aug, 2020 WORLD MARKETS WEEKLY GREED IS DEAD Politics After Individualism

wo of the UK's most thoughtful economists in their polemic against self-interest write that “we live in societies saturated in selfish - ness.” They argue that the age of homo economicus and centralisation is coming to an end, hyper-individualism must be stopped and suggest that “elite individu - alism” is the cause of our current malaise. After a “half-century of extreme individ - BOOK to READ ualism” greed is “no longer intellectually tenable”. Humans, the authors say, “have become AUTHORS’ BIO successful not by being selfish and smart, but by being social”. The values of community and mutuality John Kay will be the drivers of successful societies Born in Edinburgh in in the future -as they are already in some 1948, Kay is a leading parts of the world, from Teach for Amer - British economist ica- a selective leadership development whose career has program that's committed to achieving spanned the academic educational equity in the U.S.- to Lon - world, business and don’s Little Village-a movement of par - public affairs. He was the first dean of ents committed to alleviating material Oxford’s Said Business School and has poverty in the British capital. Mutuality held chairs at London Business could also refresh and restore politics and School, the University of Oxford, and businesses. the London School of Economics. He Greed is Dead was completed at the start has been a Fellow of the St John's Col - of the coronavirus lockdown. lege, Oxford since 1970. As the world emerges from an unprece - Kay has written weekly columns for dented crisis, the book seeks to set out the practical, original and achievable solu - Financial Times and a series of books. tions, giving the readers the chance to He has also established the Institute examine society afresh. “We are commu - for Fiscal Studies, a respected think nitarians and economists,” Kay and Col - tank and later a consultancy business. lier write, “and the central argument of this book is to reconcile our communi - ties and our economies. ”Conclusion: “Soon, we will either be celebrating the value of community, or contemplating the Paul Collier awful consequences of its loss.” A former director of Development Research at th World Bank, Sir Paul Collier is one of the world's most influ - ential development economists. He is Professor of Econom - ics and Public Policy at the Blavatnik School of Government, University of Oxford and a Professorial Fellow of St Antony’s College. He is currently a Professeur invité at Sciences Po and a Director of the Inter - national Growth Centre. His works have been published in nu - merous magazines and journals. In ad - dition to the award-winning The Bottom Billion, he is the author of Wars, Guns, and Votes: Democracy in Dangerous Places.

WORLD MARKETS WEEKLY 03-09 Aug. 2020 P.3 .

4.P AMERICAS TOPICS IN BRIEF MARKETS REVIEW •Politics & Elections Investors Re-embrace MSCI The Congress of the Republic of Peru Samuel ▶ North America 2.34 % voted 54–37 no confidence against Torres Prime Minister Pedro Cateriano on their appetite for Risk Prof. ▶ EM Latin America -2.94 % gested industrial activ - MBA & Tuesday, forcing all 19 government CANADA: Equities received a ity was expanding at Markets (Note: Weekly Change %) ministers to resign. Minister of De - boost from improving labour market the fastest pace in almost a year and fense of Peru Walter Martos was - in the country, bringing the NEWS TO WATCH named the new Prime Minister on S&P/TSX Composite Index back to a half, also provided a positive cat - Thursday, after the approval of the levels not seen since the first week of alyst. The Institute for Supply Man - US retail motion of no-confidence against Cate - March. Canada's labour market agement’s services sector gauge bankruptcies surge riano. gained 419,000 jobs in July, StatCan also came in better than expected. •Law & Crime said on Friday. However, the ongoing tensions be - Retail bankruptcies in the US are ap - -The Supreme Court of Justice of However, the benchmark remains tween the US and China remain a proaching their highest number in a Colombia, in a unanimous decision, down 3% year-to-date. Investors worry for investors. decade, according to S&P Global Mar - orderded former President Álvaro mostly ignored a resumption of The Trump administration prohib - ket Intelligence. 43 retailers have filed Uribe to be placed under house arrest. Canada-US trade tensions after US ited US residents from doing busi - for bankruptcy so far this year, includ - -Former Guatemalan Economic Min - President Donald Trump moved to ness with TikTok, WeChat or the ing Neiman Marcus, the upscale de - ister Acisclo Valladares Urruela is reimpose 10% tariffs on some Cana - apps’ Chinese owners. Stocks’ partment store chain and Brooks charged by American prosecutors for dian aluminium products. This weekly gains also came despite a Brothers, the oldest men's clothier in the laundering US$10 million, Reuters week’s rally was led by the energy rise in anxiety over the lack of con - US. For comparison, there were 48 fil - reported on Wednesday. sector as crude oil prices edged clusive progress toward an addi - ings by retailers in 2010. The coming - Citing national security concerns, higher on promising manufacturing tional fiscal stimulus congressional months will reveal which of the bank - U.S. President Donald Trump issued data and bullish weekly oil reports. package. rupt companies will find a way to sur - vive and which ones will be forced to issued two executive orders late USA: Jobs growth and other en - LATIN AMERICA: In Brazil, the permanently close stores. Thursday banning any transactions couraging economic data lifted US manufacturing PMI hit record high with the Chinese owners of the apps stocks which extended the previous 58.2 in July, the consumer price infla - Canada to impose tar - TikTok and WeChat, The move week's gains. The US economy tion was 0.36% in July vs. 0.26% in would effectively require TikTok and added 1.76 million jobs in July, June, industrial production stood at iffs on US aluminum WeChat to shut down in the US or beating estimates. 8.9% in July while unemployment Ottawa announced a C$3.6bn ($2.7bn) find new owners within 45 days. Mi - Despite the better-than-expected re - rate reached 13.3% in July. In Mexico, tariff on US aluminium products a day crosoft is already reportedly in talks port, the jobs market is still bur - the inflation rate advanced to 0.66% after US President Donald Trump's de - to purchase TikTok for billions. dened by the abrupt Covid-19 in July vs. 0.55% in June. In Colom - cision to restore a 10% tariff on Cana - •Inter. Relations driven shuttering of the U.S. econ - bia, the CPI was unchanged in July. dian aluminum imports. Friday's -Iraqi Prime Minister Mustafa Al- omy. Sentiment received an addi - Argentina, after announcing an agree - retaliatory tariffs by Canada will go into Kadhimi will visit Washington on tional lift from strong earnings ment with private creditors and mod - effect on 16 September. The counter - August 20, where he will hold talks reports from healthcare and com - ifying the payment date of the new measure was announced after Canada's with US President Donald Trump, munication services companies. The bonds, will seek to renegotiate debt deputy prime minister Chrystia Free - the White House said in a statement ISM Manufacturing Purchasing with the IMF. Argentina's economy is land previously promised a "dollar-for- on late Friday. Managers’ Index(PMI), which sug - expected to shrink 12.5% in 2020. dollar" fight. -The U.S. Treasury Department im - El Salvador's $250m posed sanctions on Friday on 11 MAJOR INDICES WEEKLY PERFORMANCE %change current and former Chinese officials, IDB loan including current Hong KongChief Ex - ARGENTINA:MERVAL 6.24 %, BRAZIL:BOVESPA -0.13 %, El Salvador’s Congress approved a ecutive Carrie Lam over Beijing's new CANADA: TSXCOMPOSITE 2.32%, CHILE: IPSA - 0.70%, $250 million loan from the Inter-Amer - national security law. COLOMBIA: COLCAP 0.69%, JAMAICA: JSE COMP -0.43%, ican Development Bank (IDB). IDB of - MEXICO: IPC 2.69%, PERU: S&P LIMA GENERAL 2.63%, fered El Salvador the loan at an interest CHART of the WEEK VENEZUELA: IBC 24.72%, USA: S&P 500 2.45%, USA: DJIA rate of 2.1% with a 5-1/2 year grace pe - 3.80. USA: NASDAQ COMPOSITE 2.47%. riod. The Salvadoran government will Aug. 2020 use the money for cash transfers to low- AMERICAS BUSINESS HIGHLIGHTS income earners and provide liquidity to cash-strapped companies, IDB said. 2. % FINANCIALS Brazil estimates record soybean crop ▪ SIMPAR gets ‘BB-’, outlook stable Brazilian soybean production will hit a record 130.5 million tons in the 2020/21 SOURCE: BCB itch assigned on Friday a first tim harvest, Mercopress reported citing Long-Term Foreign and Local Cur - ● Brazil Interest Rate F Daniel Amaral, chief economist of the On Wednesday, Brazil's central bank rency Issuer Default Ratings (IDRs) of Brazilian Association of Vegetable Oil unanimously decided to slash its 'BB-' to Brazil's Simpar S.A. and National Industries (ABIOVE). Based on this benchmark interest rate by 25 bps to Long-Term rating of 'AA-(bra)'. crop oilseed exports could reach 80 mil - a new all-time low of 2.00%. This re - The rating outlook is stable, the credit rat - lion tons in 2021, while domestic crush - duction was widely expected. In their ing agency said. Simpar is the new hold - ing could reach a new annual record of post-meeting statement, central bank ing company for JSL S.A. and its 45 million tons. ABIOVE also slightly officials noted that "...due to pruden - subsidiaries. Simpar's ratings reflect its raised the forecast for soybean process - tial and financial stability issues, the strong business profile, supported by a ing in Brazil this year, to 44.6 million remaining space for the use of mone - leading position in the Brazilian logistics industry and diversified tons, versus 44.5 million. tary policy, if any, should be small.” service portfolio.(Picture:Simpar CEO Fernando Antonio Simões)

P.4 03-09 Aug. 2020 WORLD MARKETS WEEKLY .

ASIA & PACIFIC P. 5 TOPICS IN BRIEF MARKETS REVIEW •Intern. Relations MSCI -China suspended Hong Kong's ex - Most bourses climb as data tradition treaty with New Zealand in ▶AC Asia Pacific 2.00 % a reprisal for its earlier decision to lifts confidence ▶Asia ex Japan 1.44 % end an extradition treaty with Hong exports for July, according to Kong. Chinese foreign ministry JAPAN: Stocks rallied in the first China’s General Administration of (Note: Weekly Change %) spokesman Wang Wenbin an - week of August, after the nounced the decision on Monday. au Jibun Bank Services Purchasing Customs. NEWS TO WATCH - Wang Wenbin said Wednesday that Managers’ Index (PMI) was at 45.4 The data shows that exports have China opposes the US Health and in July, a five-month high, in a sign already returned to pre-Covid19 Fintechs to partake in Human Services Secretary Alex that pressures on manufacturers levels. Ma Jun, a member of the Japan's bank transactions Azar's upcoming visit to Monetary Policy Committee of the were easing somewhat. The Japanese Bankers Association Taiwan.“China will take strong People's Bank of China estimated However, the indicator has still not (JBA) will open up access to the bank countermeasures in response to the on Wednesday that the country's recovered to “expansion” territory transfer system to fintech companies, U.S. behaviour,” Wang said, refer - economy will grow 2% for the en - (readings above 50 indicate im - possibly as early as fiscal 2021, ring to Azar’s visit. tire 2020. Hong Kong stocks proving conditions). Bank of Japan Nikkei Asian Review reported on -China's Foreign Ministry slammed dropped as Tencent comprises 12% Governor Haruhiko Kuroda said Wednesday.Bank transfers and pay - Washington for targeting Chinese of the Hang Seng Index. on Wednesday moderate recovery ments are currently processed by the apps, including TikTok, despite not is to be expected. network of banks and credit unions having any "factual basis" to support AUSTRALIA: The ASX slipped He noted that BoJ will continue to established by the JBA, and allowing claims they endanger the US na - 0.6% on Friday but the benchmark closely follow the developments in the fintech firms access to it could tional security. the country's economy and stressed index managed to add 1.3% for the week. The Rererve Bank of Aus - lead to lower transaction fees, the re - •Politics & Elections that it won't hesitate to take "what - port read. The decision to involve ever measures are necessary." tralia (RBA) said the recovery is -Sri Lanka held parliamentary elec - expected to be "slow and uneven" other subjects in the transactions came tions on Wednesday after the CHINA: Mainland Chinese mar - and "progress on reducing unem - after the Japan Fair Trade Commis - parliament was dissolved by presi - kets posted solid gains, even after ployment will be slower". sion expressed concerns over JBA's dent Gotabaya Rajapaksa in March. declining on Friday on news that The central bank kept the cash rate high prices and "closed membership." -Vanuatu's former prime minister, the Trump administration tightened unchanged at a record low of Charlot Salwai was referred to the SEBI allows exchanges restrictions on two Chinese apps, 0.25% The board also said that fis - Supreme Court to stand trial for al - Tencent's We Chat and Byte to regulate RIAs leged corruption, RNZ reported. cal and monetary stimulus will be Dance's Tiktok in the US. In - required for some time, promising The Securities and Exchange Board of •Disasters & Accidents vestors drew encouragement from to keep the cash rate target at cur - India (Sebi) has allowed stock ex - -At least 18 people died and dozens July’s Caixin / Markit manufactur - rent levels until progress is made changes to set up a subsidiary to regu - of others were injured, 15 seriously, ing PMI, which climbed to nearly towards full employment and until late investment advisors. The market after an Air India Express plane car - a decade-high reading of 52.8 from policymakers see inflation remains regulator in a circular dated Aug. 6, rying 191 people overrun the runway June’s 51.2. China also posted an sustainably within the 2-3% target. 2020 said the decision was taken con - in Calicut International Airport, Ker - unexpectedly strong 7.2% jump in sidering the growing number of regis - ala, India, local authorities said on tered investment advisors (RIAs). Saturday. MAJOR INDICES WEEKLY PERFORMANCE %change There are around 1,300 Sebi-registered -Australian PM Scott Morrison said investment advisors RIAs in India. on Thursday issuing another lock - AUSTRALIA ASX200 1.30%, CHINA SSE COMP 1.33%, HONG SEBI said the recognition of stock ex - down in the state of Victoria could KONG HSI -0.26%, INDIA NIFTY50 1.27%, INDIA SENSEX30 change's subsidiary will be based on el - cost the nation $10-12 billion. 1.15%, JAPAN NIKKEI225 2.86%, MALAYSIA KLCI -1.60%, NEW igibility of parent entity. The parent ZEALAND NZX50 -0.69%, PHILIPPINES PSEi -1.39%, TAIWAN entity should be in existence for a min - CHART of the WEEK TWII 1.30% , THAILAND SET -0.31% imum of 15 years, should have a min - imum net worth of Rs 200 crore, ASIA/PACIFIC BUSINESS HIGHLIGHTS should have nation-wide terminals Q2 2020 as well as investor grievance redressal mechanism, including arbitration, the TECHNOLOGY circular said. Besides, the stock ex - change needs to have investor service -5.32 % ▪SEZZLE to launch in India centres (ISCs) in at least 20 cities. SOURCE: STATIST. INDONESIA intech firm Sezzle is testing its service in NZ retail confidence F India, with the potential of fully launching ● Indonesia GDP Shrings by the end of the year, according to improves Indonesia's annual economic shrank Reuters. Retailer confidence remained positive by 5.32% in Q2 2020, worse than By moving into India, Minneapolis-based Sezzle in July in New Zealand, building on the market consensus of 4.61% contrac - will be able to capitalize on a booming digital strong rebound recorded in June after tion. It was the first contraction in the payments and online shopping market, as com - lockdown was lifted. 75% of retailers economy in more than 20 years. petition intensifies in the sector. responding to a new Retail Radar sur - Household consumption fell 5.51% Sezzle raised $55 million in its latest funding vey reported feelingconfident or very (vs 2.83% in Q1) and fixed investment round in July, which will go to “accelerate its confident that their business will sur - decreased 8.61%. Also, government growth strategy,” vive the next 12 months, up signifi - spending contracted 6.9%. Finance CEO Charlie Youakim (pictured) said in a release at the time. Sezzle, which cantly from just 39% in May, but 13% Minister Sri Mulyani Indrawati said currently only operates in the US and Canada, surpassed 1 million active are expecting to make employees re - fiscal spending will be more aggres - users back in February. Sezzle listed on the Australian Securities Exchange dundant when the Wage Subsidy ends. sive in H2. at AU$1.22 a share on 30 July 2019 and raised US$30 million

P.4 03-09 Aug. 2020 WORLD MARKETS WEEKLY W O R L D M A R K E T S W E E K L Y 0 3 - 0 9 Aug. 2020 P.5 6.P EUROPE & EURASIA TOPICS IN BRIEF MARKETS REVIEW •Law & Crime MSCI -Spain's former King Juan Carlos Equities higher on hopes of ▶Europe -1.61 % left the country as criminal prosecutors investigate allegations economic activity recovery ▶Large Cap -1.52 % of corruption, local media said on tive rates. In economic news, UK Monday. EU: European shares rose on signs that an economic recovery may be construction PMI increased in July (Note: Weekly Change %) -Belarusian President Alexander as well as manufacturing activity Lukashenko said on Thursday secu - gaining traction. Eurozone's serv - NEWS TO WATCH ices PMI strengthened to 54.7 in while the service sector activity also rity forces have arrested "a number accelerated last month. of "U.S. citizens, but did not say July while the manufacturing PMI Russia-Cyprus Double rose to 51.8. Retail sales also in - On the funds front, Britain’s Finan - when or why, just days before the cial Conduct Authority proposed Tax Treaty changes country goes to the polls for a creased by 5.7% in June while EU property fund investors should wait Russia on Monday announced it would presidential election, as per Reuters. producer prices rpse by 0.7%. In Europe's largest economy, the up to six months before they can get scrap a double tax treaty with Cyprus, •Trade & Tax Ifo Institute said the German car in - their money back to avoid a stam - with Moscow suggesting there was no The European Commission intro - dustry shows first recovery signs. pede for the exit leading to wide - other alternative after talks to modify duced on Wednesday more anti- The country's composite PMI rose spread suspensions in rocky markets. the deal had failed. The decision sur - dumping duties on imports of in July while German manufactur - RUSSIA: Moscow's MOEX prised Nicosia, which said talks were still under way. Chinese corrosion-resistant steel. ing PMI hit its highest level since index posted weekly gains of The Cypriot Finance Ministry said ne - -The EU decided to offer Lebanon a Dec 2018.In Spain, factory activity 7.50%. The Bank of Russia in its preferential trade agreement o Thurs - gotiations between the two sides have grew in July after long lockdown report on monetary policy, stated day, in the wake of the devastating and car sales went up. been scheduled for Aug. 10-11. A that the country's further economic Beirut blast. Italian manufacturing activity also Russian Embassy spokesperson con - recovery could be volatile due de - rebounds in July. European Central firmed in an interview with the Cyprus •Intern. Relations cline in income, restrained con - -French Emmanuel President Macron Bank Chief Economist Phillip Mail that the negotiations scheduled for Lane said the ECB is commited to sumer behavior, cautious business Aug. 10-11 regarding the Double Tax landed in the Lebanese capital on sentiments, as well as restrictions Thursday and said "unconditional recovery stimulus support. Treaty will take place as announced. on the part of external demand. The mediterranean island is a popular help is the priority." UK: The FTSE 100 Index ended The Russia IHS Markit Manufac - legal base for Russian firms due to its -Greece and Egypt signed a bilateral the week 2.28% higher. The Bank turing PMI fell to 48.4, from 49.4 low corporate taxes, privacy laws, legal agreement on Thursday which estab - of England (BoE) kept interest in June and has spent 14 months system based on English law, and status lishes a new exclusive economic zone rates unchanged and forecast that under the no-change mark of 50 - as a member of the EU. (EEZ) in the Eastern Mediterranean the UK economy would contract its longest negative run ever. between the two countries. 9.5% this year, less than the 14% The deterioration contrasted June's HSBC profit dives 65% -Foreign Ministers from Malta, , projected in May. Turkey met in Tripoli on Thursday. The pound reached 5-month high notable improvement which had Europe’s biggest bank by assets first They agreed to promote joint cooper - after BoE decision. BoE's Bailey marked the strongest reading in half profit plunged 65%. HSBC re - ation, facilitate the return of Maltese said there are no plans to use nega over a year ported on Monday a pre-tax profit of and Turkish companies to Libya and $4.32 billion for the first six months this resume flights between the three MAJOR INDICES WEEKLY PERFORMANCE %change year, lower than the $5.67 billion aver - countries. Malta and Libya are sepa - age of analysts’ estimates compiled by rated by only about 357 kilometers. BELGIUM BEL20 2.04%, DENMARK OMXC25 1.77%, FRANCE the bank. -The United Kingdom is making CAC40 2.21%, GERMANY DAX 2.94%, ITALY FTSE MIB 2.22% HSBC also said it set aside between progress in its talks with the European NETHERLANDS AEX 2.62%, NORWAY HEX -2.56%, PORTUGAL $8bn and $13bn this year for bad loans Union, British Cabinet Office Min - PSI20 1.66%, RUSSIA MOEX 7.50%, SPAIN IBEX35 1.06%, SWEDE - as it expects more people and busi - ister Michael Gove said on Friday. NOMXS30 1.94%, SWITZERLAND SMI 0.62% , UK FTSE100 2.28 % nesses to default on their repayments. The lender will also speed up 35,000 CHART of the WEEK EUROPEAN BUSINESS HIGHLIGHTS job cuts. Poll: Most CEE 27.9 % FINANCIAL currencies to gain A Reuters poll on Thursday forecast ▪SEED Capital Denmark’s VC fund most currencies in Central Eastern Eu - June 2020 rope would gain over the next 12 eed Capital, Denmark's largest venture cap - months The Czech crown was ex - S ital fund within the seed segment, believes pected to gain the most, reaching that new technology can disrupt existing industries SOURCE: DESTATIS 25.725 to the euro in the coming year. and create immense business opportunities. For Czech policymakers have been among ●Derman Factory Orders more than 20 years, some of Denmark’s best com - the most aggressive in cutting borrow - German new manufacturing orders panies have benefitted from Seed Capital's invest - ing costs. jumped 27.9% month-over-month in ments and support. The Czech National Bank (CNB) held June 2020, the most on record and The fund has identified, funded and helped many its benchmark two-week repo rate un - compared to market forecasts of a companies to commercial success, and some to changed at 0.25% on Thursday, as ex - 10.1% climb. However, factory or - profitable exits. Companies such as Vivino, Trust - pected after inflation rose to 3.3%, ders in June were 11.3% lower than pilot, Templafy and Endomondo. Founder of Vivino, Heini Zachariassen slightly above the top of the central in February, the month before restric - shares his life story as an entrepreneur in a new documentary on Amazon bank’s 1%-3% tolerance band. Earlier tions were imposed. Foreign orders Prime: Disrupting Wine - The Life of an Entrepreneur. An inspiring founder in the year, CNB cut rates by 200bps went up 22.0% in June, compared to story, that clearly shows the reality behind success. to support the economy. the previous month. (Picture: Ulla Brockenhuus-Schack Seed Capital Managing Partner)

P.6 03-09 Aug. 2020 WORLD MARKETS WEEKLY MIDDLE EAST P. 7 TOPICS IN BRIEF MARKETS REVIEW •Intern. Relations MSCI -Iranian Foreign Minister Moham - Markets trade with ▶EM Europe Middle East mad Javad Zarif said the miscalcula - tions and big mistakes made by the Beirut Explosion Eyed 1.14 % superpowers have resulted in catas - Middle Eastern stock markets were at least 135 people and injured 5,000 (Note: Weekly Change %) trophes and a surge in extremism mixed on Monday in thin holiday others. Stocks continued to swing across the globe, Tasnim news trade. Tel Aviv's TA35 gained between gains and losses on NEWS TO WATCH agency reported on Monday. 0.21%.Abu Dhabi's General Index Wednesday. 's ASI was -The US State Department’s special moved up 0.45%.Tehran's TEDPIX higher by 0.14% while Tel Aviv's envoy for Iran Brian Hook is resign - lost 0.90%. Markets in Bahrain, Jor - TA35 gained 1.30%. Riyadh's TASI Turkish lira hits ing, he told the New York Times on dan,,Lebanon, , Pales - added 0.15%. 's Exchange record low Thursday. Hook, who has been in the tine, Qatar, remained Index was off 0.49%.Abu Dhabi's The Turkish lira hit a new record role for two years, will be succeeded closed for Eid al-Adha. General Index depreciated by low on Thursday against the dollar by Elliott Abrams, currently the State Equities in the region turned in an - 0.28%. Palestine's AL QUDS de - and the euro. The currency of Mid - Department’s special representative other mixed performance on Tues - clined 0.09%. Tehran's TEDPIX ad - dle East's largest economy fell as - for Venezuela. day. Tel Aviv's TA35 gained 0.23%. vanced 1.96%. Beirut's stock market much as 3.5% to a historic low of Abu Dhabi's General Index dropped was closed as government declared 7.31 against the dollar before trad - •Disasters & Accidents 0.14%. Palestine's AL QUDS de - two-week state of emergency in the - At least 21 people have been killed ing at 7.267 at 14.42 GMT. clined 0.31%. Tehran's TEDPIX ad - city. Equities in the region finished Among the worst emerging-market and 42 others injured in an attack on vanced 0.09%. Markets in Saudi in a mixed fashion on Thursday: a prison in the city of Jalalabad in performers this year, it has lost 18% Arabia, Oman, Qatar, Bahrain re - Bahrain's ASI was lower by 0.28% despite greenback's weakness in re - Afghanistan Al Jazeera reported on mained closed for holidays. while Tel Aviv's TA35 was un - Monday. cent weeks. The lira also touched a Lebanon's BLOM index rose 1.33% changed. Riyadh's TASI rose 0.40%. record of 8.6370 versus the euro -Several explosions in the port of hours before the massive explosion Qatar's Exchange Index added and has shed 13% since the start of Beirut, Lebanon, on Tuesday killed in the port of Beirut which took 0.96%. Abu Dhabi's General Index June against that currency. at least 157 people injured more than place around 6:00pm local time climbed 1.25%. Palestine's AL Turkey's central bank announced 5,000 others. The shockwave was (15:00 GMT) on Tuesday that killed QUDS declined 0.06%. felt in a few nearby countries like that it is set to use “all available in - struments to reduce the excessive Cyprus. MAJOR INDICES WEEKLY PERFORMANCE %change -A large fire broke out on Wednesday volatility in the markets.” evening at a market in the emirate of 02-06 / 08/2020 (unless stated otherwise) FDI flows to Dubai Ajman in the UAE It caused no in - ABU DHABI ADX GENERAL 1.27%, BAHRAIN ASI -0.13% slump juries or deaths, the police said. ISX60 -0.73%, (26-29/07/2020), IRAN TEDPIX 0.2% (25-29/ 07/2020) , ISRAEL TA35 1.62%, LEBANON BLOM 1.33% Foreign direct investment in Dubai CHART of the WEEK (04/08/2020), PALESTINE AL-QUDS -0.45% OMAN MSM30 fell by 74% in the first half of the 0.12%, (26-29/07) QATAR QE GENERAL 0.47%, SAUDI ARABIA year compared with the same period 50.8 pt TADAWUL 0.55%, TURKEY BIST100 -5.88% ( 03-07 /08 /2020 ) of 2019. The Middle East financial and trade MIDDLE EAST BUSINESS HIGHLIGHTS centre drew in 12 billion dirhams ($3.3 billion) in the six months to July 2020 FINANCIALS June 30, according to Dubai FDI Monitor data released by Dubai In - ▪AMIN Investment Bank goes public vestment Development Agency (Dubai FDI), an agency of Dubai he IPO of 1 bn and 50m shares, represent - Economy. ● UAE Growth Positiv ing 15% of total equity shares of Amin In - T There were 190 FDI projects an - The seasonally adjusted IHS Markit vestment Bank (AIB) was held on Tehran Stock UAE Purchasing Managers' Index Exchange; out of total floated equities, 840m nounced in the emirate in H1 2020 (PMI), which covers manufacturing shares were offered to the public on Wednesday across sectors including technology, and services, rose to 50.8 in July from and 210m shares is offered to investment funds, e-commerce and pharmaceuticals. 50.4 in June. This was the steepest on July 9. AIB is an Iranian investment bank that Globally, Dubai ranked third in the growth in the private sector since Oc - provides asset management, advisory, underwrit - number of greenfield FDI projects tober last year, amid efforts to reopen ing, debt and equity market services to investors, and fourth in FDI capital flows, ac - the economy. Both output and new or - companies and institutions who want to develop cording to fDi Markets. ders rose for the second month running their business in Iran's financial market. (Pic: TSE CEO Ali Sahraee)

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● CURRENCIES World Government 10-Year Yield NOTE: Major FOREX rates performance ( 03-07/08/2020 ) ■ Argentina* ■ Mexico ■ AFRICA Lowest: 0.7253 Lowest: 0.01340 Highest: 44.00 Highest: 5.800 • EGP/USD - Egyptian Pound ■ AMERICAS • PLN/USD - Polish Zloty US Lowest: 43.61 Lowest: 5.700 US Dollar - Highest: 0.06285 US Dollar Index (DXY) - Dollar - Highest: 0.2711 Low - Change: 1.80% Change: 0.351 % Lowest: 0.06237 Highest: 93.99 est: 0.2646 ■ Australia ■ Poland • ZAR/USD - South African Lowest: 92.52 ■ MIDDLE EAST Highest: 0.909 Highest: 1.306 Rand US Dollar - Highest: 0.58 • USD/CAD - US Dollar Cana - • TRY/USD - Turkish Lira US Lowest: 0.794 Lowest: 1.255 77 Lowest: 0.05652 dian Dollar - Highest: 1.3452 Dollar - Highest: 0.1452 Low - Change: -0.837% Change: 0.545% • GHS/USD - Ghanaian Cedi Lowest: 1.3231 est: 0.1356 ■ Belgium ■ Russia US Dollar - Highest: 0.1757 • MXN/USD - Mexican Peso • JOD/USD - Dinar US Highest: 0.000 Highest: 5.940 Lowest: 0.1717 US Dollar - Highest: 0.04494 Dollar - Highest: 1.418 Low - Lowest: -0.270 Lowest: 5.830 • USD/NGN-US Dollar Niger - Lowest: 0.04363 est: 1.4085 Change: 11.163% Change: 0.084% ian Naira – Highest: 381.400 • ARS/USD - Argentinian Peso • KWD/USD - Kuwaiti Dinar ■ Brazil ■ South Africa Lowest:380.250 US Dollar - Highest: 0.01385 US Dollar - Highest: 3.2768 Highest: 6.540 Highest: 9.395 ■ ASIA Lowest: 0.01370 Lowest: 3.2651 Lowest: 6.285 Lowest: 9.215 • JPY/USD - Japanese Yen US • BRL/USD - Brazil Real US • ILS/USD - Israeli Shekel US Change: 3.413% Change: 0.000% Dollar-Highest: 0.949700 Dollar – Highest: 0.1919 Dollar - Highest:0.2942 ■ Canada ■ South Korea Lowest: 0.939150 Lowest: 0.1838 Lowest: 0.2915 Highest: 0.513 Highest: 1.322 • HKD/USD - Hong Kong ■ EUROPE ■ OCEANIA Lowest: 0.425 Lowest: 1.276 Dollar US Dollar - Highest: • EUR/USD - Euro US Dollar - • AUD/USD - Australian Dol - Change: 3.250% Change: 1.854% 0.1290, Lowest: 0.1290. Highest:1.1917 Lowest:1.1696 lar US Dollar - Highest: 0.7244 ■ China ■ Spain • INR/USD - Indian Rupee US • GBP/USD - British Pound Lowest: 0.7075 Highest: 3.035 Highest: 0.366 Dollar - Highest: 0.01337 US Dollar - Highest: 1.3187 • NZD/USD - New Zealand Lowest: 2.955 Lowest: 0.260 Lowest: 0.01328 Lowest: 1.2981 Dollar US Dollar - Highest: Change: 0.740% Change: -15.452% • KRW/USD - Korean Won US • EUR/CHF - Euro Swiss 0.6692 Lowest: 0.6575 ■ France ■ Switzerland Dollar - Highest: 0.000845 Franc - Highest: 1.0841 • FJD/USD - Fiji Dollar US Highest: 0.000 Highest: 0.000 Lowest: 0.000836 Lowest: 1.0726 Dollar – Highest: 0.4762 Lowest: -0.247 Lowest: -0.544 • SGD/USD - Singapore Dollar • RUB/USD - Russian Ruble Lowest: 0.4647 Change: 6.528% Change: -5.166% US Dollar – Highest: 0.7316 US Dollar - Highest: 0.01377 ■ Germany ■ Taiwan Highest: 0.000 Highest: 0.365 Lowest: -0.561 Lowest: 0.340 ●CRYPTOCURRENCIES Change: 19.326% Change: 0.000 % ■ India ■ Turkey NOTE: Leading cryptocurrencies indices performance Highest: 5.893 Highest:14.710 03-07/08/2020. Source: Investing.com Lowest: 5.808 Lowest: 12.600 Change: 0.839% Change: 10.472 % •BTC/USD, Bitcoin US Dollar • LTC/USD - Litecoin US Dol - • LEO/USD - LEO US Dollar - ■Indonesia ■ UK Highest: 11,901.8 lar - Highest: 60.995 Highest:0.5460 Highest: 6.869 Highest: 0.150 Lowest: 10,981.6 Lowest: 55.082 Lowest:0.04590 Lowest: 6.771 Lowest: 0.065 •ETH/USD-Ethereum US Dol - • EOS/USD - EOS US Dollar - • ADA/USD - Cardano US Change: -0.557% Change: 52.174% lar-Highest: 406.92 Highest: 3.2403 Dollar Highest:0.14789 ■ Italy ■ USA Lowest: 366.44 Lowest: 2.8454 Lowest: 0.13217 Highest: 1.123 Highest: 0.572 • XRP/USD - Ripple US Dol - • BNB/USD - Binance Coin • XMR/USD - Monero US Lowest: 0.973 Lowest: 0.504 lar - Highest:0.31971 US Dollar - Highest: 23.5364 Dollar Highest: 96.57 Change: -8.357% Change: 6.115% Lowest: 0.28165 Lowest: 20.7165 Lowest: 84.09 ■ Japan ■EURO BUND • USDT/USD- Tether US Dol - • BCHSV/USD -Bitcoin Cash • TRX/USD - Tron US Dollar - Highest: 0.030 Highest: 178.01 lar - Highest: 1.0011 SV US Dollar–Highest:241.91 Highest: 0.021098 Lowest: 0.004 Lowest: 176.92 Lowest: 0.9989 Lowest 241.50 Lowest: 0.018831 Change: -50.000% Change: -0.20% • BCH/USD - Bitcoin Cash US • XLM/USD - Stellar US Dol - • HT/USD - Huobi Token US Dollar-Highest: 326.07 lar - Highest:0.11162 Dollar - Highest: 5.0138 * 1-Y Bond Yield (27-31/07/2020) Note: Lowest: 280.47 Lowest: 0.09965 Lowest: 4.4558 Performance 03-07/08 /2020

P.8 03-09 Aug. 2020 WORLD MARKETS WEEKLY BOOK to READ

AUTHOR’S BIO

Mohnish Pabrai

Born in 1964 in Mumbai, Mohnish Pabrai is an Indian-American busi - nessman, investor, author and philan - thropist. Growing up in New Delhi and Mumbai, he was surrounded by both extreme poverty and wealth. He moved to the U.S. in 1983 to attend South Carolina’s Clemson University.In 1991 he started his IT company TransTech which he sold in 2000 for $20 million. He he is the founder of Pabrai Investment Funds, a group of hedge funds modeled on Warren Buffett's original partnerships and the Dak - shana Foundation.

The Dhandho Investor The Low Risk Value Method to High Return

handho is a Gujarati word, which is that high business/investing returns are not plied successfully in the stock market. means “Endeavour that creates inseparable from high-risk opportunities. And readers just introduced to important value wealth.” In The Dhandho Investor, Pabrai's methodology encourages the practi - investing concepts will also digest Pabrai's Monish Pabrai does an outstanding tioner to recognize a given venture's potential low-risk, high-return approach to business job sharing his low-risk value investing upside and downside and only go ahead with and investing. methodology. the venture when the potential downside is The book contains plenty of powerful mes - He weaves business/investing theory with limited and the potential upside is significant. sages to help both readers assess investment common sense and the stories of some of the In a single sentence, opportunities and make them better investors. most successful investors and entrepreneurs "heads I win, tails I don't lose much." Readers Taking into consideration that Pabrai manages of our time, from India's Patels (who own familiar with the principles of value investing Pabrai Investment Funds and since 1999 has over $40 billion in the motel assets in the expounded by Benjamin Graham, Warren "delivered annualized returns of over 28% United States) to Richard Branson ( of Virgin Buffett, and Charlie Munger will easily under - (net to investors)" he's worth listening to. Company). The central premise of this book stand how the Dhandho principles can be ap -

WORLD MARKETS WEEKLY 03-09 Aug. 2020 P.9 10 .P the WEEK AHEAD ECONOMIC CALENDAR Updates GDP Q2, Core CPIs, Trade Data

full economic calendar for next Bonus, EUROZONE: June Industrial Pro - ARGENTINA: July CPI m/m week starts with GDP for Sin - July Claimant Count Change, June duction m/m & y/y BRAZIL: June Service Secto Growth A gapore, inflation data from Employment Change 3M/3M m/m, SWEDEN: July CPI m/m & y/y y/y & m/m Hungary, Ukraine, industial produc - June Unemployment Rate BRAZIL: June Retail Sales m/m, y/y COLOMBIA: June Imports y/y, June tion data from Mexico, US JOLTs Job GERMANY: August ZEW Current USA: OPEC Monthly Report, Crude Industrial Production y/y, June Retail Openings, unemployement rates in Conditions, August ZEW Economic Oil Inventories, July CPI Index s.a, Sales y/y, June Trade Balance USD key economies and culminates in Fri - Sentiment July CPI n.s.a m/m, July Real Earnings PERU: Interest Rate Decision day’s US July retail sales. Central EUROZONE: August ZEW Eco - m/m, July Cleveland CPI m/m, bank meetings in New Zealand, Peru nomic Sentiment Thomson Reuters IPSOS PCSI Aug. ■FRIDAY and Egypt will also be in the spotlight. RUSSIA: June Trade Balance July Core CPI y/y, July, July CPI m/m, USA: EIA Short-Term Energy Out - Crude Oil Inventories, WASDE MALAYSIA: GDP y/y Q2 ■MONDAY look, July Core PPI m/m & y/y, July Report, 10-Year Note Auction, July SWISS: July PPI m/m & y/y PPI m/m & y/y, July NFIB Small Federal Budget Balance, INDIA: July WPI Inflation y/y, July DENMARK: July CPI y/y, June Business Optimism, MBA Delin - INDIA: July CPI y/y, M3 Money WPI Food y/y, July WBP Fuel y/y, Trade Balance quency Rates q/q Supply July WPI Manufacturing Inflation y/y SWITZERLAND: July Unemploy - CANADA: June Building Permits UK: July RICS House Price Balance, FRANCE: July CPI m/m, July HICP ment Rate n.s.a., July Unemployment m/m AUSTRALIA; July Employment m/m Rate s.a. RUSSIA: GDP Quarterly y/y Q2 Change, Full Employment Change, POLAND: GDP q/q Q2 HUNGARY: July Core CPI y/y & AUSTRALIA: August Westpac Unemployment Rate, uly Participation HUNGARY: GDP y/y Q2 July CPI y/y Consumer Sentiment, Wage Price Rate, MI Inflation Expectations EUROZONE: GDP y/y Q2, GDP TURKEY: Quarterly 3-month Jobless Index q/q Q2, Wage Price Index y/y Q2 S. AFRICA: June Retail Sales y/y q/q Q2, June Trade Balance, Employ - Average-May, Treasury Cash Balance NEW ZEALAND: RBNZ Interest ment Overall Q2 (July) Rate Decision, Monetary Policy State - ■THURSDAY UKRAINE : June Trade Balance EUROZONE: August Sentix In - ment & Rate Statement YTD (USD) vestor Confidence SOUTHAFRICA: Unemployment N. ZEALAND: July Business NZ ISRAEL : July CPI m/m & y/y UKRAINE: July CPI m/m Rate Q2, Unemployment Q2, May PMI TURKEY: June Current Account BRAZIL: BCB Focus Market Readout Manufacturing Production m/m CHINA: July Fixed Asset Investment (USD), June Industrial Production y/y, MEXICO: June Industrial Produc - INDIA: June Cumulative Industrial y/y, July Industrial Production y/y, End Year CPI Forecast (Aug) tion m/m & y/y Production, June Industrial Production Chinese Industrial Production YTD CANADA : June Manufacturing CANADA: July Housing Starts y/y, June Manufacturing Output m/m y/y July House Prices y/y, July Retail Sales m/m UK: NIESR GDP Estimate, July Sales y/y, July Retail Sales YTD y/y USA: June Retail Inventories Ex BRC Retail Sales Monitor y/y ■WEDNESDAY GERMANY: July CPI m/m & y/y, Auto, July Retail Control m/m, July USA: JOLTs Job Openings June, July July HICP y/y & m/m Retail Sales Ex Gas/Autos m/m, July GDP y/y Q2 SPAIN: July CPI y/y, July HICP y/y CB Employment Trends Index MALAYSIA: Core Retail Sales m/m, Nonfarm Pro - NEW ZEALAND: RBNZ Press UK: Thomson ReutersI PSOS PCSI NEW ZEALAND: July Electronic ductivity q/q Q2, July Retail Sales Conference August Card Retail Sales m/m m/m & y/y, Unit Labor Costs q/q Q2, JAPAN: Adjusted Current Account, UK: Business Investment q/q & y/y TURKEY: Turkey Thomson Reuters Q2, GDP q/q Q2, GDP m/m, GDP IPSOS PCSI (Aug) July Capacity Utilization Rate, July June Current Account n.s.a. Industrial Production m/m & y/y, July July NAB Business y/y Q2, June Industrial Production SOUTH AFRICA: June Gold Pro - AUSTRALIA: Manufacturing Production m/m, June Confidence, July NAB Business Survey m/m & y/y, June Manufacturing Pro - duction y/y, June Mining Production Business Inventories m/m, Michigan SINGAPORE: GDP q/q & y/y Q2 duction m/m & y/y, June Trade Bal - EGYPT: Interest Rate Decision, Consumer Expectations, Michigan UAE: June M3 Money Supply y/y ance, June Trade Balance Non-EU, Overnight Lending Rate June Construction Output m/m & y/y, USA: IEA Monthly Report, July Ex - Consumer Sentiment Michigan ■TUESDAY Index of Services port Price Index m/m, July Import 5-Year Inflation Expectations, Michi - ISRAEL: July Imports - Exports Price Index m/m gan Current Conditions & Michigan UK: June Average Earnings Index (USD), July Trade Balance MEXICO: August Interest Rate Deci - Inflation Expectations (Aug) +Bonus, June Average Earnings ex ITALY: July CPI m/m sion COLOMBIA: GDP y/y& q/q Q2

in FOCUS Reserve Bank of New Zealand Interest Rate Dcision At its monetary policy meeting held on June 24, the Reserve Bank of New Zealand (RBNZ) left the Official Cash Rate (OCR) unchanged at a record low of 0.25% for the second straight month, as widely expectedE - conomists expect the rate to stay there for at least the course of this year.The RBNZ maintained its large scale asset purchase (LSAP) programme at NZD 60 billion, - which is aimed at keeping interest rates low. The central bank Photo: Adrian Orr RBNZ also said the stronger New Zealand dollar had put pressure on export earn - Governor ings and agreed that the extent of the continued job losses and reduced ac - tivity remains uncertain.

P.10 03-09 Aug. 2020 WORLD MARKETS WEEKLY