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Monday, October 2, 2017 Muharram 12, 1439 AH STAKEHOLDER RELATIONS : Page 16 GULF TIMES Uzbek delegation impressed by Oryx BUSINESS GTL Ras Laff an plant Qatar Airways wins two top awards at Qatar Airways partnership California expo

Qatar Airways has been awarded ‘Best Cabin Service’ and ‘Best Food and Beverage’ honours at the 2017 APEX Passenger Choice Awards held during the annual APEX Expo in Long with AQA Holding set to Beach, California. The airline also received the highest ranking as a 2018 five-star airline from over half a million passengers who took part in the highly influential awards. Qatar Airways group chief executive Akbar al-Baker said, “We are delighted to win these two amazing awards, especially as they are voted for by the people we care about most – our pas- help Meridiana fl y high sengers. It is their vote of confidence in us which spurs us on to continually enhance the customer experience for all of our atar Airways group chief execu- passengers on all of our flights around the world. tive Akbar al-Baker has said the “The awards, combined with being named Airline of the Year Q“important partnership” with 2017 by SKYTRAX earlier this year, vindicate our continuing AQA Holding, the new parent company of investment to ensure our award-winning five-star service is Meridiana airline, will help increase Me- the best in the world and our passengers can enjoy unrivalled ridiana’s competitiveness in the European standards of cabin service with the best dining in the sky.” market. Qatar Airways was the only airline at the prestigious event to “We look forward to working together to win two out of the top five awards. The ceremony was hosted reinforce its position to provide even more by Guy Brian Kelly of The Points Guy, a website which off ers connectivity to Italy and other European worldwide points, miles and travel related tips for frequent destinations, as well as those in the US and fliers. beyond,” al-Baker said. The latest awards come just a month after Qatar Airways Qatar Airways has further strengthened clinched the ‘Best Up In The Air Experience’ award for the third its commitment to Italy with the acquisi- consecutive year and the ‘Best Baggage Initiative’ award at the tion of 49% of AQA Holding, while the Future Travel Experience Global 2017 awards ceremony, held previous sole shareholder Alisarda has kept in Las Vegas. 51%. The award-winning airline has received a number of other Qatar Airways currently fl ies from Doha major accolades this year, including ‘Airline of the Year’ in the to Rome, Venice, Pisa and Milan. A total prestigious 2017 Skytrax World Airline Awards, which was held of 42 fl ights per week and this partnership at the Paris Air Show. This is the fourth time that Qatar Airways will further strengthen the airline’s ties to has been given this global recognition. Qatar’s national carrier Italy, while promoting job creation within also won a raft of other major awards at the Skytrax ceremony, the country, and from where it connects including ‘Best Airline in the Middle East’, ‘World’s Best Busi- passengers to more than 150 destinations ness Class’ and ‘World’s Best First Class Airline Lounge.’ around the world. The 2017 APEX awards were collated using the TripIt app from Under the terms of the contribution and Concur, travel management experts; travellers rated more shareholders’ agreement signed in July than 500,000 flights on a five-star scale, from October 2016 2016, Alisarda maintains the right to ap- through July 2017. The ratings determined the winners of point the majority of the Board members. the Passenger Choice Awards, with four- and five-star-rated Following the closing, the shareholders’ airlines rated in the categories of global, major regional and meetings of AQA Holding and Meridiana low-cost airlines. appointed the new board of directors. Alisarda’s chairman Marco Rigotti has been appointed chairman of AQA Holding while Francesco Violante is the new chair- man of Meridiana. Violante has previously Al-Baker with Rigotti at the agreement signing. Qatar Airways has picked up a 49% stake in AQA Holding, the new parent company of been the chief executive offi cer of SITA Meridiana airline. until end of June 2016, leaving in at the end October after a very successful 13 years. in the project. We are thrilled to begin this Violante, said, “I am very delighted plan and to make our passengers happy to In due course, the new plan for Meridi- partnership project with the world’s best that the shareholders appointed me as travel with us.” ana will be announced and the new chief airline. We are now working on an ambi- chairman of Meridiana board. I am ex- Meridiana is the second largest Italian executive offi cer will be appointed. In the tious business plan, with the aim to off er to cited to be part of this new venture with carrier, with an extensive network, which meanwhile, Rigotti will retain the executive the passengers’ new destinations and the the aim of building a strong airline in Italy connects the main Italian airports with Qatar Airways has received a number of major powers as deputy chairman. highest level of satisfaction. I warmly wel- and in the European market. My priori- Sardinia and provides connectivity with accolades this year, including ‘Airline of the Rigotti, said, “I am really grateful to Min- come Francesco and I am delighted that he ties will be to create value for the share- hubs in Europe, as well as in the US and Year’ in the prestigious 2017 Skytrax World ister Delrio for his determined and tireless accepted to be part of this challenging and holders, to help the management and Africa. Meridiana’s fl eet consists of Boeing Airline Awards support, encouragement and strong belief exciting venture.” all the staff to achieve the new business 737s, 767s and MD-82s. ‘Hamad Port shipping costs drop 31% since blockade’

perations at Hamad Port has helped bring down shipping costs by 31% de- Ospite an economic blockade imposed Al-Kaabi: Key visit. on Qatar by three of its Gulf neighbours, SAK Holding Group has said in its monthly real es- tate report. The report said freight prices at the begin- QP chief al-Kaabi leaves ning of the blockade were pegged at $1,700 for a 40-foot container. Today, the report said, shipping costs dropped by 31% to $1,300. “Observers noted that the wind blew coun- for Tokyo for talks with ter to what siege countries had desired. Clos- ing ports did not isolate Qatar, harm its econo- my, curb the overall development of all aspects major corporations of life, or slow down the pace of construction and development projects, especially those connected to hosting 2022 World Cup. Qatar Petroleum president and CEO, and chairman in which Qatar Petroleum and Qatargas connect “Qatar, in parallel with the blockade, of Qatargas, Saad Sherida al-Kaabi began an off icial with clients and partners in Japan, and review and launched an economic transformation plan visit to Tokyo to hold talks with senior executives discuss existing cooperation and business relation- that focused on self-reliance in securing all of major Japanese energy companies. ships and ways to enhance them. its needs, preserve the independence of pro- Al-Kaabi, who is accompanied by senior QP and The Qatar Petroleum and Qatargas annual talks duction and manufacturing operations, and Hamad Port’s unique services and state-of-the-art facilities have attracted QG off icials, will hold high level meetings and in Japan enjoy increasing importance as Qatar doing everything necessary to maintain food numerous international companies and partners discussions with chairmen, presidents, and senior continues to occupy a prominent place as a reliable and medical security, in partnership with the executives of a number of Japanese corporations and trustworthy energy supplier to Japan, par- Qatari private sector and regional and inter- several other countries in East Asia to boost emirate of Fujairah suff ered great losses when and companies including Chiyoda, JGC Corpora- ticularly liquefied natural gas. Collaboration in the national partners,” the report said. the movement of Qatari imports from around it stopped exporting to the State of Qatar and tion, Japan Bank for International Cooperation, field of natural gas has a special significance in the It said Qatar used various options and al- the world. lost all its Qatari clients. Al Jabero exports to JERA, Chubu Electric, Marubeni, Bank of Tokyo- matrix of relations with Japan, which was Qatar’s ternatives to fulfi l the needs of the local mar- According to the report, after construc- Qatar accounted for about 90% of its opera- Mitsubishi, Cosmo, Itochu, LNG Japan, Sumitomo founding LNG customer. Qatar’s first LNG ship- ket and supply it with all types of foodstuff , tion materials started fl owing into the Qatari tions. Mitsui Banking Corporation SMBC, Tohoku Electric, ment, from Qatargas, arrived at the shores of Japan medicines, raw materials, and building ma- market regularly and at reasonable prices, the The report said Hamad Port’s unique serv- a number of shipping companies, and the Ministry in January 1997 under the first ever binding LNG terials. siege countries “began to incur heavy losses ices and state-of-the-art facilities, as well as of Economy, Trade and Industry. supply contract signed between Chubu Electric Also, it quickly launched new maritime because 95% of Gulf companies were operat- ground breaking technology attracted nu- The visit is in continuation of an annual tradition, and seven other Japanese buyers and Qatargas. routes between Hamad Port and numerous ing projects in Qatar.” merous international companies and part- ports in countries such as Oman, Turkey and “For example, in the fi eld of export, the ners. Gulf Times 2 Monday, October 2, 2017 BUSINESS

Qatar shares edge down near 8,300 level amid weakened selling by foreign institutions

By Santhosh V Perumal support from domestic institutions the All Share Index by 0.44% to 2,359.63 booking weakened influentially to against QR0.25mn on September 28. by 5% to QR32.71mn and deals by 7% Business Reporter and local retail investors in the market, points. QR6.11mn compared to QR50.58mn last Total trade volume fell 19% to 8.45mn to 554. whose capitalisation eroded 0.21% to The industrials index gained 0.38%, Thursday. shares, value by 3% to QR177.06mn and However, the insurance sector’s QR453.64bn. whereas insurance fell 1.9%, consumer Local retail investors’ net buying deals by 22% to 1,961. trade volume more than doubled to The Qatar Stock Exchange, which The market saw violent gyrations in goods (1.82%), transport (1.32%), declined considerably to QR0.97mn The banks and financial services sector 0.13mn stocks and value soared 83% yesterday revised the constituents in the first 60 minutes with the index telecom (0.35%), banks and financial against QR23.34mn the previous day. saw a 57% plunge in trade volume to QR5.89mn but on an 8% fall in its indices, opened the week on a weak touching a low of near 8,260 points services (0.33%) and real estate (0.17%). Domestic institutions’ net buying also to 1.97mn equities, 19% in value to transactions to 61. note and its key barometer settled near twice. Thereafter, there was occasional Major gainers included Qatar fell perceptibly to QR9.05mn compared QR76.59mn and 46% in transactions The market witnessed a 61% surge in 8,300 levels. gains coupled with intermittent profit Islamic Bank, Industries Qatar, to QR26.4mn on September 28. to 617. the telecom sector’s trade volume to Notwithstanding weakened net booking and overall the index settled Gulf International Services, Gulf The GCC (Gulf Cooperation Council) The consumer goods sector’s trade 2.66mn shares to more than double selling by foreign institutions, the 20 points lower. Warehousing, Ezdan, Qatar Industrial funds turned net sellers to the tune volume plummeted 50% to 0.09mn value to QR34.18mn on an 86% 20-stock Qatar Index fell for the third Trade turnover and volumes on the Manufacturing, Al Meera and Salam of QR0.55mn against net buyers of stocks, value by 35% to QR4.55mn and expansion in deals to 272. straight session by 0.24% to 8,292.1 increase in the bourse, where telecom, International Investment; while Qatar QR1.65mn last Thursday. deals by 32% to 111. The transport sector’s trade volume points. industrials and banking sectors Insurance, Milaha, Al Khaliji, Masraf Al Non-Qatari individual investors’ net There was a 15% shrinkage in the real was up 9% to 0.24mn equities, whereas Islamic equities were seen dropping together accounted for about 79% of Rayan, Widam Food, Qatari Investors selling strengthened to QR3.01mn estate sector’s trade volume to 1.32mn value shrank 8% to QR5.25mn and faster than the main index and other the total volume. Group, Qatar General Insurance and compared to QR0.56mn the previous shares, 15% in value to QR17.89mn and transactions by 20% to 132. indices in the bourse, whose year-to- The Total Return Index fell 0.24% to Reinsurance, Mazaya Qatar and Barwa day. 7% in transactions to 214. In the debt market, there was date losses were at 20.55%. 13,905.37 points, the Al Rayan Islamic were among the losers. The GCC retail investors’ net profit- The industrials sector’s trade volume no trading of treasury bills and There was weakening of buying Index by 0.49% to 3,366.84 points and Non-Qatari institutions’ net profit- booking rose marginally to QR0.35mn declined 8% to 2.04mn equities, value government bonds.

Dubai’s Mashreq to reduce 30% Oil output cuts, reform of jobs as automation woes add to Saudi pain kicks in Bloomberg Dubai Non-oil growth stagnating even with 2030 vision Bloomberg Dubai audi Arabia’s economy contracted for two quarters in a row for the fi rst time since Sthe global fi nancial crisis, as the kingdom ashreqbank plans to cut grapples with low oil prices and its businesses as much as 30% of its struggle to cope with economic reforms. Mworkforce over the next The kingdom’s gross domestic product three-to-fi ve years as the Dubai- shrank 1% in the second quarter from the same based lender reduces costs and period a year earlier, when it expanded 0.9%, introduces new technology, its according to offi cial data released on Saturday. chief executive offi cer said. The economy had contracted 0.5% in the fi rst The bank is looking to reduce three months of 2017. about 10% of those jobs over Crown Prince Mohammed bin Salman is the next 12 months as comput- leading the push to transform the biggest Arab ers take over “repetitive jobs,” economy at a time when crude prices are at but will add staff in other ar- about half their 2014 peak. But as authorities eas such as advisory and digital seek to reduce the kingdom’s reliance on oil, marketing, said Abdul Aziz al- they’re also leading eff orts among Opec mem- Ghurair, who is also chairman of bers and some other major producers to bolster the United Arab Emirates’ Banks prices by cutting output. Federation. The kingdom’s oil GDP shrank 1.8% in the It’s not “just Mashreq but I second quarter, weighing on overall activity. expect the banking industry to The data also showed how non-oil indus- eliminate 20-to-30% of jobs tries are still struggling with eff orts to overhaul in the next three-to-five years the economy and shore up public fi nances. The due to artificial intelligence,” non-oil GDP, the main engine of job creation, al-Ghurair said in Dubai yes- expanded below 1%, driven mainly by the gov- terday. The bank plans to add ernment sector, the data show. about 15% of jobs in advisory, “There is very little capital spending going relationship managers to sup- on in Saudi Arabia at the moment,” Mohamad port borrowing, mortgages, al-Hajj, an equities strategist at the research digital marketing and innova- arm of EFG-Hermes in Dubai, told Bloomberg tion, he said. TV in an interview. Financial fi rms are spending The Saudi economy hasn’t contracted for billions on cutting-edge technol- two quarters in a row since at least 2010, of- ogy to automate processes and fi cial data show. The kingdom doesn’t publish cut costs. Mashreqbank is also quarterly seasonally-adjusted data, which is reassessing the size of its branch- used by some economists to defi ne a recession. es as customers move to online “What we’re seeing is stagnation in non-oil banking. The number of average activity,” said Monica Malik, chief economist branch visits has fallen to less at Abu Dhabi Commercial Bank. “Second- than one per customer this year quarter data show still very lacklustre de- from nine in 2012, al-Ghurair mand” even after the government reversed a said. decision to cut or freeze bonuses and allow- “The shape and size of our ances for state employees, she said. Saudi Arabia’s economy is contracting, though policymakers may be more concerned about the stagnation in non-oil growth, branches will shrink to half in the A Bloomberg survey conducted before according to Bloomberg. Second quarter data show it’s stuck below 1% – down from a peak of almost 10% when oil was above $100 a next three years,” he said. “We Saturday’s release show economists expect barrel – showing that a key element of the kingdom’s so-called Vision 2030 transformation plan has yet to get going. “We haven’t seen want branches to have a smaller growth to grind to a halt this year, compared any meaningful pick-up in investments or clear plans to stimulate the economy,” said Monica Malik, chief economist at Abu Dhabi format rather than having big with a growth forecast of 0.5% in the previous Commercial Bank. fl oors.” poll.

FTSE decisions hurt Saudi, boost Kuwait blue chips

Reuters Dubai

The Saudi stock index fell yesterday after news that index compiler FTSE had decided to delay including Riyadh in its secondary emerging market index, while Kuwaiti blue chips were strong after FTSE included Kuwait. In its annual country classification review on Friday, FTSE said it would need more time to evaluate the practical impact of Riyadh’s market reforms. It will therefore assess Saudi Arabia again next March: “It is anticipated that Saudi Arabia will meet the requirements for inclusion as a Secondary Emerging market from early 2018.” Khalid al-Hussan, chief executive of the Saudi exchange, told Al Arabiya television that Riyadh could still enter the index as soon as in September 2018, attracting A Saudi investor monitors share movements at the Saudi Stock Exchange, or Tadawul, in the capital Riyadh between $2.5bn and $3bn of passive (file). The Saudi index had dropped 0.6% last week amid rumours that FTSE’s decision would be negative; it lost funds when it did so. a further 0.7% yesterday. “There are new measures taking place to allow foreign shares, Samba Financial Group lost 1.3%. jumped 3.3%. Kuwait’s index of the Egypt’s main index added 0.6%. The companies to list on Tadawul in the FTSE decided that Kuwait would top 15 most valuable shares added index gained momentum last week coming year,” he added. enter its emerging market index in 1.9%, but the main index fell 0.1%. as it started to price in a reversal of The Saudi index had dropped 0.6% September 2018. Before the decision, some analysts tight monetary policy. last week amid rumours that FTSE’s Though the news had been were talking of passive fund inflows Abu Dhabi’s index rose 0.3% on the decision would be negative. expected by many investors, of several hundred million dollars, back of blue chips; First Abu Dhabi Yesterday it lost a further 0.7% and confirmation of the upgrade but in a report on Saturday, Arqaam Bank added 0.5%. The Dubai index blue chips that would probably be boosted stocks such as the region’s Capital calculated Kuwaiti stocks fell 0.5% as theme park operator part of the emerging market index largest warehousing company might have a combined weighting DXB Entertainments lost 2.9%. bore the brunt of selling; Saudi Agility, which climbed 1.2%, and of only 0.11%, resulting in $151.5mn Elsewhere in the Gulf, Oman’s index Basic Industries dropped 1.0% and National Bank of Kuwait, which of inflows. rose 0.4% to 5,156 points. Gulf Times Monday, October 2, 2017 3 BUSINESS

The One World Trade Center stands past the Brooklyn Bridge at dusk in this aerial photograph taken above New York (file). Chinese buyers spent a record $31.7bn on US residential properties in the year through March 31, remaining the biggest foreign force in the market, according to the National Association of Realtors. Chinese money is seeping through cracks into world’s housing markets

Bloomberg “It’s a question of cost and benefit,” agent Regina Li was asked by a reporter off icials’ concerns about outflows, said Beijing/Shanghai Zhang said. how people get their money out for Iris Pang, an economist at ING Bank in Since the start of 2017, Chinese applying purchases. “Clients all have their ways,” Hong Kong. for their $50,000-a-year foreign- she said. Data from some of the biggest property Shanghai restaurateur David Hu said exchange quotas must sign pledges that It turns out that the traditional routes agencies paint a rosy picture of demand he’s nervous about wiring money to the money won’t be used for real estate. still apply: Faking explanations on bank for overseas property: Australia for a home purchase because Violators face a range of potential documentation for money transfers; of China’s crackdown on currency sanctions. borrowing the bank accounts and Knight Frank’s sales in China more than outflows. Instead, he plans to carry the Hu, the restaurateur, said he and a foreign-exchange quotas of friends tripled by value in the second quarter cash in a suitcase. relative used their $50,000 annual or relatives to make multiple small from a year earlier and may set records The 61-year-old intended to move about quotas to convert yuan into Australian transfers that move a large sum, an illicit by volume and value this year. A$85,000 ($66,000) to Melbourne this dollars last year. Now, his desire to avoid method sometimes called “smurfing”; month, the last part of his financing for a regulatory scrutiny - and fees - has or shifting money through underground Shiju said it sold 30% more homes in deal struck last year. “Buying a property encouraged him to move the money by banks, according to agents and buyers the first eight months and is on track for abroad was and is still workable,” said hand, a tactic that comes with its own who spoke on condition of anonymity a record by volume. The total value of Hu, though he described the process as risks, such as potential penalties in China for fear of drawing government scrutiny. purchases slipped slightly, the company a “lot more troublesome” nowadays. and Australia for moving undeclared In some cases, wealthy individuals said. Tighter capital controls have done cash. already have cash abroad or friends little to dent the appetite of Chinese The impact of the increased currency with access to foreign currency who are Savills this month said business buyers who already helped drive prices scrutiny has been on the size rather willing to lend the money overseas and “increased slightly this year from a year higher across the globe. While definitive than the quantity of deals. At real estate mainly selling UK homes, often below rules, said Lam. He acknowledged that be repaid in yuan on the mainland. earlier,” without being more specific. data are hard to come by, real estate portal Juwai.com, the average price of $500,000, and Cushman & Wakefield growth would have been stronger Larger payments can be routed through brokers including Knight Frank, Savills overseas properties Chinese buyers also highlighted surging Chinese without the capital curbs. underground banks, many based in Interest in off shore homes surged and domestic firm Shiju report rising inquired about dropped to just over demand for British property after the The undimmed appetite suggests Hong Kong, which accept Chinese yuan among buyers in Beijing when the city purchases of overseas property this $292,000 this year from more than pound weakened following the Brexit Chinese money could continue to put onshore and put dollars into a client’s tightened local market curbs in March, year. What’s changed is that the curbs $356,000 in 2016. vote. upward pressure on prices, a trend that’s off shore account. Yet the increased according to Knight Frank. have prompted buyers to look for Some buyers are eschewing pricey hubs Still, developers continue to count on stoked concern among locals in cities scrutiny has driven transaction fees as cheaper homes in smaller cities, making like New York for less-expensive areas demand for prime luxury housing from from Vancouver to Sydney. Chinese high as 3% this year, from typical levels There’s also strong demand among the down payments more manageable. such as Florida and Texas, according the wealthiest Chinese buyers. On buyers, mainly from the mainland, but below 1.5% last year, the people said. wealthy in smaller cities like Quanzhou Part of the reason for the unhindered to Eric Lam, chief executive of Shiju, Monday, a crowd gathered in a Beijing also from Hong Kong, spent a record One reason for the continued buying in southern Fujian province and Yixing in overseas purchases could be that the overseas broker unit of Shenzhen hotel as the first 16 apartments from the $31.7bn on US residential properties in may be an absence of publicised eastern Jiangsu, the agency said. authorities have already succeeded World Union Properties Consultancy Inc. towering 125 Greenwich Street project, the year through March 31, remaining punishments of rule-breakers. At the For buyers like Shanghai restaurateur in stemming capital outflows after They’re typically spending up to 3mn being built close to One World Trade the biggest foreign force in the market, end of last year, the State Administration Hu, the appeal of overseas property lies cracking down on the most acquisitive yuan ($450,000) for US homes, and as Center in lower Manhattan, were off ered according to the National Association of of Foreign Exchange said violators could in part in the fear that China’s decades of companies. That eases the need to much as 2mn yuan for UK properties, up at prices from $1.2mn to $12mn. Realtors. be added to a watch list, denied foreign- robust growth could come to an end. enforce limits on individuals, a more prices that make for manageable down “It’s about how determined home Three months ago, standing near an exchange quotas for three years, or “China’s economy could become diff icult and costly process, said Steven payments using exchange quotas, Lam buyers are to get their money out, and advertising display in Beijing for luxury investigated for off ences including unstable,” he said. “It would make me Zhang, chief economist at Morgan said. whether their resolve is strong enough” apartments in Vancouver off ered by money laundering. feel insecure to have everything in one Stanley Huaxin Securities Co. Jones Lang LaSalle Inc said it was to risk punishments for breaking the Canadian developer Westbank, sales A stronger yuan has also helped allay basket.”

Bloomberg QuickTake China Inc’s shopping spree

By Carolynn Look and The Situation firms in assets such as ports that are Jonathan Browning consistent with the goals of its Belt In September, Donald Trump blocked a and Road Initiative. Chinese-backed investor from buying For much of 2016, China rivalled and a US semiconductor business, just at times led the US as the world’s most Here’s what Chinese companies the fourth time in a quarter-century acquisitive nation, often by forging now own: Pirelli tires, Volvo cars, that a US president has nixed a unlikely partnerships: A little-known the Inter Milan soccer team and foreign takeover on national-security property developer is buying the its crosstown rival AC Milan, New concerns. Opposition to Chinese Chicago Stock Exchange and a loss- York’s Waldorf Astoria hotel and the buyouts has also mounted in Europe, making iron ore producer purchased a Hollywood studio behind “Jurassic the main target for China’s companies UK computer-game developer. World.” in the past two years. In Germany, The Background Corporate China has been on an where China Inc struck deals at a rate unprecedented shopping spree, of almost one a week in 2016, the China’s trade forays began as early broadening its horizons as the former economy minister called on as 130BC when merchants pioneered domestic economy slows with a the European Union to give national the Silk Road through central Asia record $245bn of overseas deals in governments more powers to block to Europe. Chinese emperors for 2016. But the spending bonanza has takeovers. The European Commission centuries considered the country begun to wane thanks to obstacles has signalled that overseas buyers will self-suff icient, and foreign trade both at home and abroad. face tougher scrutiny. only opened up after Deng Xiaoping technologies and brand power, while The Argument Hank Paulson has argued that There’s anxiety among foreign Meantime, China has imposed tighter began unlocking China’s borders the weakening yuan gave them an Chinese investment should be governments that the close ties restrictions on moving Chinese in 1979. The priority soon became added incentive to spend cash sooner Critics say China should loosen embraced — one report found that between China Inc and the state currency out of the country and energy and commodities in emerging rather than later. Unlike in Europe, restrictions and give foreign Chinese takeovers had saved many expose countries to something put under scrutiny some of the markets to feed China’s breakneck the US has a regulator to vet deals companies the same freedom that American firms from bankruptcy more sinister than a welcome biggest corporations that have led industrialisation. The aperture has for national security threats. That Chinese firms enjoy when making and that most had resulted in injection of investment. And there’s the acquisition charge, including since widened to include established body — the Committee on Foreign overseas acquisitions. They argue that expansion. A study in Germany drew concern among Chinese authorities Dalian Wanda Group Co, Anbang companies in developed economies Investment in the US — has seen its China Inc gains an unfair advantage similar conclusions. Doomsayers about money fleeing the country Insurance Group Co, HNA Group and varied industries — Lenovo’s workload soar as allegations of Chinese from easy financing for deals provided warn that Chinese overseas and the nature of the investments Co and Fosun International Ltd. purchase of IBM’s personal computer cyber espionage put a spotlight on by government-backed banks. investment could turn into a Trojan by the nation’s huge private China’s regulators worry that those business in 2005 marked a watershed. technology deals. Chinese investments Managers at state-owned enterprises horse that introduces China’s conglomerates. Even so, 2017 is on companies’ purchases may destabilise The government had encouraged in a Philips unit and Western Digital fall short of international standards politics and values. That view course to be the second-biggest the financial system, weaken the the recent overseas push, as rising collapsed after involvement from and are preoccupied with short-term represents a Cold War mentality, year in history for Chinese overseas currency and deepen the country’s overcapacity at home left Chinese the regulator, which also opposed goals, according to Wang Jianlin, one critics respond, recalling the acquisitions — assuming the deals debt woes. Even so, the government companies seeking new customers. the takeover of Aixtron, a Germany of China’s richest men. unseemly backlash against Japan’s get completed. is encouraging investment by state They also covet cutting-edge technology firm with US operations. Former US Treasury Secretary takeover spree in the 1980s. Gulf Times 4 Monday, October 2, 2017 BUSINESS ETF investors cash in on metals’ best quarter since 2010

Bloomberg Supply concerns that fuelled the run- clines in the nation have also driven were ordered by the government of The biggest casualty in the fund the worst month of 2017 for a most- New York up earlier this quarter are resurfacing prices higher. Aluminium has surged Jiaozuo city in Henan province to cut outfl ow this month has been copper. active contract . as China cuts output. BNP Paribas by 11% as the Chinese government cuts output by 30% from September 19 to Barclays warned the red metal had ris- Still, the worst may be over as out- exited its short copper position, say- capacity to tackle pollution. China’s March 15. en too fast too soon and is vulnerable fl ows ebb, said Maxwell Gold, a New xchange-traded fund investors ing the raw material “is pretty much at pared production will result to “mate- “This is much earlier than the cen- to profi t-taking by investors. Hedge York-based director for investment are cashing in as industrial met- fair values now” and “has room to rise rial defi cits” in the second half of this tral government-required cut over the funds and other large speculators are strategy at ETF Securities. Outfl ows Eals head for the steepest quarter- ahead.” year through 2019, Deutsche Bank said heating season that is to start from No- also retreating, paring their net-bull- from ETF Securities’ industrial metal ly gain in almost seven years. Analysts “We believe funds were liquidating September 12, as it raised its price fore- vember, suggesting local governments ish bets by 21,558 contracts in the week ETFs slowed to $4.7mn last week, from say the exodus is likely just a pause. to book profi ts that should be pretty cast for aluminium. are very serious about enforcing cen- ended September 19, the most since $117mn a week earlier, Nitesh Shah, As the Bloomberg Industrial Met- healthy,” said Bhar, the third-most The amount of metal being churned tral government policy this year,” Mac- October, US government data show. the company’s London-based com- als Sub-index climbed to an almost accurate copper forecaster tracked by out is falling even before the cuts quarie analysts said in a note emailed Dane Davis, a New York-based ana- modities strategist. The company ac- three-year high in early September, Bloomberg in the second quarter. “It’s scheduled for winter take eff ect. The September 21. lyst at Barclays, likened the rally in counts for over 80% of the industrial ETF holders started pulling money to not the end of the bull run. We think nation’s aluminium output slipped The impact of the anti-pollution metals and the sell-off to Icarus from metal ETFs listed in Europe, according book their gains for the quarter. Out- we’re near the stages of the next up- 3.7% to 2.64mn metric tonnes in Au- policies goes beyond aluminium. In Greek mythology, with copper prices to Gold. fl ows from long-only ETFs linked to ward cycle.” gust, National Bureau of Statistics said China’s Sichuan province, as much as rising “above the clouds” on the back The outlook for metal prices is bet- the sector reached about $240mn in “We would now look for good en- September 13. 6,000 tons of mined zinc output could of transitory factors and now heading ter over the longer term because “there September, the biggest monthly with- try levels, in which to build good long The “unprecedented” policies tar- be lost due to suspension of several for a decline. are supply issues,” said Tim Atwill, the drawal since at least 2010, according to positions because we think these met- geting pollution could be the next “big mines for environmental inspections, Copper futures on the Comex in New head of investment strategy at Seat- data compiled by Bloomberg. als have very sound fundamentals,” he event” to shake commodity prices, SP Angel analysts said in a note Sep- York have surged 18% this year and are tle-based asset manager Parametric, While the redemption helped spur said. Morgan Stanley analysts including tember 26. poised for a seventh straight quarterly which oversees $200bn. an almost 7% slide in prices from this The Bloomberg Industrial Metals Tom Price said in a report on Sep- That could deepen the production gain, the longest streak since 2006. “It varies by which metal you’re month’s high, there’s reason to think Sub-index has climbed more than 10% tember 25. Macquarie Group expects defi cit that was estimated by the In- Copper futures for delivery in De- talking about, but in general a lot of the metals rally – and ETF investors this quarter amid signs of stabilising a production loss of 60,000 tonnes ternational Lead and Zinc Study Group cember slipped 0.3% to $2.971 a pound supply has been taken off the mar- – will soon return, analysts including economic growth in China, the world’s in aluminium and 360,000 tonnes in to have reached 203,000 in the fi rst six on the Comex in New York on Friday. ket,” Atwill said in an interview at the Robin Bhar at Societe Generale SA said. biggest metals user. Production de- alumina this year, after two companies months of the year. That took the September loss to 4.1%, Bloomberg headquarters in New York.

Honda to start mass Investors bemoan China recall in China over Takata airbags

AFP to a number of deaths and in- crackdown on bitcoin Beijing juries worldwide. In China, the defect involves more than 20mn AFP vehicles, most of which have al- Beijing onda will recall more ready been recalled. than 245,000 vehicles Last month, Honda reached a Hin China over concerns $605mn settlement in a lawsuit eijing’s decision to shut down bit- about airbags made by troubled over defective airbags in millions coin trading platforms has left Japanese giant Takata, Chinese of cars on American roads. Binvestors scrambling to cut their authorities said yesterday, deal- Honda joins Nissan, Toyota, losses and threatens to deprive the cryp- ing another blow to Takata’s BMW, Mazda and Subaru in to-currency of a crucial market. largest client. agreeing a deal to settle a lawsuit, “The authorities don’t understand The Japanese carmaker and replace the defective airbags anything about bitcoin!” fumed Zhang its Chinese joint venture partner from now-bankrupt Takata, and Yanhua, founder of an investment fund Guangqi Honda will start with- to compensate car owners. that was dead on arrival after Beijing drawing vehicles fi tted with the Multiple Honda models are started tightening the screws at the start potentially faulty airbags begin- aff ected by the case, including of the month. ning October 23 and will include Civic, Accord and CR-V, dating In mid-September the central bank, Accord, Fit, City, Crosstour and back to 2001. the People’s Bank of China, told virtual Everus S1 models, China’s top The airbag defect has been currency trading platforms based in Bei- consumer watchdog said. linked to 16 deaths and scores of jing and Shanghai to cease market opera- They will replace the faulty injuries worldwide, as the safety tions. The bank has focused its sights not airbags for free. devices can infl ate with exces- just on bitcoin but also ethereum and any Takata has recalled some sive force, sending shrapnel from other electronic units that are exchanged 100mn airbags produced for the infl ator canister hurtling to- online without being regulated by any some of the world’s largest auto- wards driver and passengers. country. makers, including about 70mn in The issue led to the biggest car They include two Chinese platforms, the US, because of the risk that recall in history of about 100mn Okcoin and BTC China, which accounted they could improperly infl ate vehicles worldwide. Takata in for 22% of the global volume of bitcoins and rupture, potentially fi ring February pleaded guilty to fraud at the end of August. deadly shrapnel at the vehicle’s for hiding the defect, and paid a The bank’s warning shot has shaken occupants. $1bn fi ne. The company fi led for world prices and put a damper on the ac- The problem has been linked bankruptcy in June. tive community of local investors. “The chances of a reversal are mini- mal,” said Zhang Yanhua, who has been scrambling to offl oad his bitcoins. Uber drivers need licences in Three months ago the 50-year-old had set up a small investment fund dedicated Australia’s Queensland by Jan to crypto-currencies, which met a pre- A man walking past a display cabinet containing models of bitcoins in Hong Kong. Beijing’s decision to shut down bitcoin trading mature end. platforms has left investors scrambling to cut their losses and threatens to deprive the crypto-currency of a crucial market. Bloomberg parties are fit and proper to To acquire virtual currencies, “invest- Sydney provide services that are of the ment channels (in yuan) are becoming creasingly used as a tool in criminal ac- they’re worried about this as a competi- If the government offi cially attacked high standard that Queenslanders scarcer” and access to platforms us- tivities” such as drug traffi cking. tive threat in some way,” said Yermack. the Chinese “miners”, “this would re- expect when using a taxi or ride- ing foreign currencies “will become too Bitcoin has also lured many ordinary The price of bitcoin plummeted mid- duce the volumes produced” and move Ride-booking operators and booking service,” Bailey said. complicated”, Zhang told AFP. Chinese attracted by the incredible surge September after the ultimatum to the the mining elsewhere, strengthening the drivers, such as those from Uber has faced battles worldwide Others are seeking an alternative way in prices, a popularity that has generated Chinese platforms, slipping to under hand of Western players such as BitFury, Uber Technologies Inc, will need over the legality of its ride-hailing out: private over-the-counter transac- “pyramid schemes and fi nancial fraud”, $3,300. It made a vigorous recovery to observed Greg Revenu, managing partner licences to off er their services in service, as traditional cab drivers tions between individuals are taking off said Dong Ximiao, an economist at Pe- around $4,100 Friday, though it had of investment bank Bryan, Garnier & Co. the Australian state of Queens- whose business has been threat- on messaging applications. king University. traded around $5,000 a month ago, ac- But “it’s a separate topic from trad- land under new regulations an- ened fought back by lobbying for But Zhang said that was “too risky”. But the central bank, which at the start cording to the Bitcoin Price Index. ing platforms,” said Revenu.”And as nounced yesterday in Brisbane. stiff er regulations. London has For his part, Sun Minjie, an investor of September banned companies from Another cause for concern is the fu- the spectrum of applications using the The eligibility tests for drivers revoked Uber’s licence, and chief who says he bought more than $150,000 issuing electronic currency units to raise ture of bitcoin mining in China, which blockchain technology widens, China and booking entities will be the executive off icer Dara Khosrow- worth of bitcoins, intends to hold on to funds, wants to fi ght “the speculation” the authorities have yet to comment on. may take another look.” same for all those off ering per- shahi is due to fly into the UK capital them for the long term. around the crypto-currencies, which The virtual currency is created through In fact, blockchain technology — sonalised transport, Mark Bailey, in coming days to try to negotiate “I expect nothing from the govern- “seriously disrupted the fi nancial sys- blockchain technology, which publicly which is reputedly very secure and in Queensland’s minister for main a deal that prevents the ride-hailing ment...but the fate of bitcoin does not tem”. records transaction details including the principle impossible to tamper with — is roads, road safety and ports, said in service from being banned in its depend on the Chinese authorities.” “They didn’t ban bitcoin, but banned unique alphanumeric strings that iden- already used in food safety, fi nance and a statement. Applications opened largest European market. Why has this hardening attitude to- exchanges from trading for speculative tify buyers and sellers sea freight. yesterday and ride-hailing drivers Queensland will also require wards bitcoin come about? purposes,” said David Yermack, fi nance It is very profi table but long, expen- And Beijing does not want to be left must have a licence by January 15, booked-hire vehicles to display In mid-September, the National In- professor at New York University. China sive, energy-intensive process requiring behind: Despite the crackdown the Chi- while anyone who arranges book- signs that clearly identify which ternet Finance Association of China — “has a long-term concern about capital powerful servers. nese ministry of industry announced last ings for such a service must have a entity it is operating under and an off shoot of the central bank — drew fl ight”, which hits the value of the yuan, Between 60 and 70% of new bitcoins week the launch of a research laboratory permit by December 1. that are clearly visible from at up a damning indictment against virtual he said. “It has a lot to do with problems are mined in China, where the local lead- dedicated to blockchain to “accelerate” “This allows us to ensure all least 20 metres (66 feet) away. currencies, accusing them of being “in- in the Chinese fi nancial system, that er Bitmain has imposing infrastructure. its development in the country. S Korea’s exports surge to record on steel, semiconductors

Bloomberg and some companies pushed out ship- the ministry said. “Shipment of some July 1. By industry, exports of semicon- Seoul ment of products before 10-day Chu- vessels seemed to aff ect total exports ductors rose 70% amid soaring DRAM seok holidays starting on yesterday, the value,” said Stephen Lee, economist at chip prices. trade ministry said. Meritz Securities. Shipments of steel jumped 107.2%, outh Korean exports surged to The better-than-expected data “Export growth is expected to slow helped by rising steel prices and some a record last month in the latest came after China announced its fac- to single-digit in the fourth quarter.” shipments for large-scale projects, Ssign that stronger global trade is tory gauge hit a fi ve-year high. The “Although exports are at a record- such as an off shore plant in Norway; helping to underpin growing momen- results also show that South Korea’s high, this was mostly expected amid petrochemicals gained 41.5% and pe- tum for the global economy. economy is demonstrating resilience high demand for semiconductors and troleum products increased 49.5%, as The nation’s shipments abroad even as the war-of-words between US also because of the base eff ects from prices climbed amid the disruptions rose for an 11th month in September, President Donald Trump and North low oil prices a year earlier,” Jeong to US refi neries following Hurricane driven by overseas demand for steel, Korean leader Kim Jong-un heightens Wonil, economist at Yuanta Securities Harvey. semiconductors and petrochemical tensions on the peninsular. Korea, said by phone. Exports of automobiles advanced products. Exports surged across most of 13 “South Korea’s exports will probably 57.6%, aided by base eff ects from a 19- Exports jumped 35% from a year major categories, the trade ministry be good until the end of this year, but day strike a year earlier and early ship- earlier, the trade ministry said yester- said. South Korea’s economy improved it seems to be uncertain whether the ments of automobiles before the Chu- day. The median estimate of econo- slightly in some regions in the third strong cycle for the semiconductor in- seok holidays. Exports of vessels rose mists was for a surge of 25%. Imports quarter, with domestic consumption dustry will continue into 2018.” 38.7%, with two value-added vessels gained 21.7%, versus expectations for driven by positive sentiment and the Shipments to the US rose 28.9%, shipped out in September. them to advance 20.6%. The trade government’s job-creation policy, the while those to China increased 23.4%; Exports of auto parts fell 6.4% surplus was $13.8bn, also a record. Bank of Korea said last week. Geopolit- those to Asean nations grew 44.8%. amid slowing growth in US motor Month-on-month growth in exports ical concerns surrounding North Korea from October, the trade ministry said, monetary stimulus. There will also be Exports to India surged 22.3% as South vehicle industry; shipments of tel- was the most since January 2011. There and household debt remain as risks to as the US Federal Reserve takes steps 6 1/2 fewer working days in South Ko- Korean products gained price compet- ecommunications devices and home were 2.5 more working days in Sep- the outlook, the central bank said. to reduce its balance sheet and other rea in the fourth quarter of 2017 than itiveness after the implementation of a appliances declined 15.9% and 15.6%, tember compared with a year earlier Export growth is projected to slow central banks are expected to reduce there were in the year-earlier period, goods and services tax in India started respectively. Gulf Times Monday, October 2, 2017 5 BUSINESS

Volatility revival fear Smart-beta debate sparks pits SocGen against Barclays

Bloomberg identity crisis at Vanguard London

Bloomberg its connotation of passivity - “beta” is Strategists are taking sides on New York Wall Street lingo for the market’s over- the outlook for volatility in the all return. months ahead. “Very early, there was an enormous Barclays reckons markets re smart-beta funds active or amount of noise and confusion in the are unlikely to be spooked by passive? For Vanguard Group, industry as to what this was. It was tighter US monetary policy, Athe cost of debating that point being pitched as a replacement for in- while valuations and position- has been nearly $800bn. dexing, and that really got people riled ing don’t suggest a pullback At least, that’s how much the rest of up,” said John Ameriks, head of QEG. from risk is in the off ing. the mutual fund industry has amassed “That’s one of the reasons why you Societe Generale analysts, in the investment strategies, money haven’t seen more stuff from Vanguard. meanwhile, suggest higher management’s hottest innovation since We’ve been very consistent with saying yields and a breakdown in the the ETF itself. Only the smallest sliver this is active.” correlation between stocks and has gone to Vanguard, thanks to years Vanguard has struck an intellectual bonds could spell the end of of soul-searching over how to market workaround of sorts. The products are this year’s “low volatility trap.” the concept without alienating clients active, and shouldn’t be based on an That suggests investors should trained to resist Wall Street innova- index at all, they argue. Instead, Van- snap up hedges on the cheap. tions. guard sells active factor ETFs in Canada Their opposing views come But the trend is no fad, and incoming and UK, and has sought permission to as investors navigate a tentative CEO Tim Buckley seems fi nally ready sell actively managed ETFs in the US reversal of key market trends to pull the trigger on smart beta ETFs That way, the funds aren’t based on an in the final days of the third in America. Competitors are watching index, but are managed by QEG to al- quarter, with bond bears and closely, desperate to see if Vanguard has low for more frequent rebalancing and dollar bulls on the up while tech waited too long in its quest for intel- purer factor exposures. mega-caps stumble. lectual purity to make up the fi ve-year QEG manages $2.2bn in factor in- “The dominant feature of head start given the rest of the industry. vesting portfolios, and $222mn in its the current macro environment “Their view is that we have to be very Canada and UK ETFs. The fi rm decided is very low actual and implied careful in entering any space, and the to pursue not just factor mutual funds volatility, coexisting with an terminology describing it,” said Dana but ETFs because “investor appetite for economic and political back- D’Auria, director of research at Sym- these products are most pronounced drop that contains little to alarm metry Partners, which oversees more among those who prefer ETFs,” said investors,” Barclays strategists than $8.5bn. Rich Powers, head of Vanguard ETF Ajay Rajadhyaksha and Michael “It’s a big organisation, and I don’t product management. Gavin wrote in a report. think there’s necessarily the same view But in the US ETF market, the com- The hunt for yield will on smart beta and factor investing pany will be entering a mature space, continue unabated as there’s no across the whole organisation.” where smart beta assets have more than “plausible catalyst” that could Most of the fi rm’s reticence has doubled in four years. While Vanguard upset valuations for risk assets come down to a marketing debate already off ers US-list value and growth for the remainder of 2017, ac- tied to Vanguard’s core identity as an Ambivalence at the world’s second- tion refl ected skepticism at the highest titative Equity Group, established in ETFs, many managers and industry ex- cording to the analysts. index investor. Executives have been largest asset manager has made smart level. Everyone from legendary founder 1991 and long relegated to managing perts don’t consider them smart beta Political challenges in the US, paralyased by the question of what to beta a goldmine for everyone else. Jack Bogle to longtime chief investment old-school quantitative products that since they’re market-cap weighted. China and Europe in the fourth call mutual funds and ETFs that group BlackRock said the category expanded offi cer Gus Sauter lambasted the con- use accounting metrics to mimic fun- But there’s still an opportunity for quarter are modest compared like stocks in categories such as high- at a 37% organic rate in 2016, making it cept for years, saying there’s no better damental active managers. Vanguard to chip away at BlackRock’s with the event risks investors momentum or low volatility, known as one of its biggest growth segments. “beta” than market-cap weighted in- A year after Buckley’s appoint- stronghold. It’s targeting advisers, have navigated this year, such investment factors. Are they active or It’s not that Vanguard is opposed to dexes. ment, QEG executives pitched and one of the largest consumers of smart as the French election, they add. passive? active management - about one-third A big break in the opposition came won Vanguard’s fi rst contract to man- beta, known to trust the Vanguard SocGen strategists led by Kok- Outgoing CEO Bill McNabb, loath of the fi rm’s assets are in stock picking when Buckley took over as CIO from age a close cousin of smart beta ETFs, brand. Still, their products may not ou Agbo-Bloua, by contrast, sound to off end a clientele that has pumped strategies. Sauter in 2012. It was then that Van- factor-based mutual funds that exploit be as straightforward or familiar as the alarm over stretched market more than $4tn into his funds, parses It’s just that it likes a clear distinc- guard began to test more experimen- market anomalies like size or volatility. their competitors, considering actively positioning as the US monetary the nomenclature with a deliberation tion between those types of funds and tal strategies like smart beta. Though The fi rst, Vanguard’s Global Minimum managed ETFs only make up 1% of the tightening cycle gathers pace. that borders on goofi ness. index-tracking passives. Buckley voiced scepticism about quant Volatility fund, started in 2013. Since entire ETF industry. “Low volatility across both “I’ll call them mechanical active,” And that is a line smart beta was and beating the market in general, he 2015, it’s launched three more global “The right answer for us was to sell equities and rates has no doubt McNabb says during an interview at designed to blur. Billed as hybrids, the was more open to the idea from a busi- factor mutual funds and eight factor these as an active fund, even if that created a situation where an the company’s offi ces. ”I don’t believe idea is to let computers armed with an ness perspective, according to a former ETFs abroad. means it’s a harder slog,” Powers said. increase in both vol and cor- in this smart beta concept. I don’t think idea of which stocks beat the market employee who requested anonymity to Vanguard says it was always a ques- “It’s more diffi cult to be a sales person relation could create very acute anything is smart about it.” On the oth- assemble portfolios that are only rarely speak freely. tion of semantics, not disapproval of with these products. deleveraging of risk parity/vol er hand: “Some of the factor stuff , we tweaked. That employee worked for a key the concept itself. Executives especial- That’s OK because we wanted to control funds,” they wrote in a think, is very legitimate.” At Vanguard, obstacles to its adop- player in the saga, Vanguard’s Quan- ly hated the term smart beta because of structure these products right.” note. The popular hedging strategy this year - snapping up Treasuries to hedge stocks at record prices - could fall out of favour if correlations change, When everyone’s senior, everyone loses in distressed debt reducing the allure of bonds as a “risk diversifier.” That should increase the volatility of multi- Bloomberg times. The debt deals have eroded the That’s well below the 77% average bust amount of distressed exchanges; also lost ground to fi nancial engineer- asset portfolios in the process, New York traditional claim on all assets for fi rst- for fi rst-lien term loans from 2000 people do dozens of exchanges now, ing that shuffl ed assets to diff erent they argue. lien holders, with some facing cuts in through 2016, according to Moody’s. and nobody even says anything,” said arms of an issuer and then pledged Capital-guarantee products, recoveries by a third or more, and cred- Recoveries for fi rst-lien loans, exclud- Moody’s analyst David Keisman. If those assets to new slices of debt, like which provide downside pro- tanding at the head of the line to itors farther back in line could wind up ing revolving lines of credit, were 66% anything, waiting might hurt asset and the transfer of brands and intellectual tection, look attractive if “the get repaid when a company goes with nothing. last year, a fi gure that has been falling recovery values. “It’s always better to property by J Crew and Claire’s Stores. voracious and insatiable frenzy Sbust isn’t what it used to be. It’s Toys “R” Us creditors got a taste of almost every year since reaching 95% default in a benign cycle than a bad cy- On top of that, covenant-lite debt for yield” begins to unravel, the more like milling around in a crowd, as this when term loans made in 2014 in 2011. cle,” Keisman said. “If they kick the can documents leave creditors with little strategists conclude. debt deals hollow out assets and hand dropped this month from par to 65 For lower classes of debt, it gets re- until we hit a downturn, they’re going bargaining power if things go awry be- With market volatility out top priority to more lenders. cents on the dollar almost overnight. ally ugly, with senior secured bonds to do worse.” cause they have no legal cause to inter- hovering near multi-year lows, The result is that senior creditors Unsecured debt plunged to less than recovering just 31% in 2016, down from One consequence of the swaps is vene. strategists have voiced oppos- may fare worse than expected in the 20 cents, just 13 months after the toy 74%. Senior unsecured debt received that capital structures have become Those terms have become more ing views throughout the year. next distressed cycle. retailer completed an $850mn restruc- just 14% and subordinated debt was in more top heavy, leaving fewer junior prevalent as companies borrowed HSBC Holdings last week also By some measures, it’s already hap- turing that was supposed to buy time single digits. creditors to act as a “debt cushion” to about $2tn in new money over the presented the bullish case, pening, with data from Moody’s Inves- for at least two holiday seasons. S&P Then there’s iHeartMedia, the cur- absorb losses, according to Keisman. past fi ve years. North American high- arguing low economic volatility tors Service showing average recoveries Global ratings is debating whether to rent champion of amend-and-extend. What’s more, senior lenders are fi nding yield bond covenant quality weakened will continue to lull implied and for term lenders hovering near the low- reduce its recovery forecast for various More than a dozen debt deals since the themselves pushed down in the capital in August, and is hovering around its realised price moves in markets, est since at least 2000. term loans, which is already as low as radio broadcaster’s 2008 buyout have structure as new secured debtholders record-worst score, according to a Sep- as stable data tend to boost the “There are a lot of factors, things you 70%. barely dented more than $20bn of ob- cut ahead of them in line to be repaid. tember 12 report from Moody’s. present value of future cash can see broadly in the marketplace, that At J Crew Group, term lenders are ligations. The average debt cushion below fi rst- There’s one hopeful note, relatively flows generated by companies. suggest recoveries for creditors could now in a signifi cantly worse position A stalemate with angry creditors has lien covenant-lite loans has shrunk speaking. The last distressed cycle dur- Barclays says equity rally end up being lower – if not a lot lower after they failed to stop a restructuring. prevailed since March over a plan that from 33% in 2005 to 2010 to about 22% ing the fi nancial crisis caused so much has been driven by earnings – in the next cycle,” said Colin Adams, The preppy retailer used loopholes in asks them to take losses while giving in 2016, Moody’s said. Structures con- pain that it might be hard for aggregate growth, not multiple expan- a managing director at turnaround fi rm its credit documents to move its brand value to its equity owners. If iHeart sisting only of bank debt now make up recoveries to get any lower, according sion. It recommends long glo- M-III Partners. name out of reach of secured creditors, goes bankrupt, S&P pegs recovery for 23% of deals, up from 4.5% from 2005 to Bloomberg Intelligence analyst Phil bal equities over global fixed One reason is that easy credit has al- and incur new debt against it. By S&P’s senior secured debt at about 50%, with to 2010. Brendel. income; bullish international lowed struggling companies like Toys reckoning, this cuts the likely recovery unsecured holders getting a resounding To be sure, debt buyers bear some “I’d be surprised if things are shares, but sharp de-rating of “R” Us to refi nance with scant protec- rate for J Crew’s term loans to about zero. blame because they paid little heed to stretched more than they were in 2007,” the S&P 500 unlikely. tion for lenders, some of them several 15% in a bankruptcy. “We’ve seen an insane, really ro- safety in their hunt for yield. They’ve Brendel said. “It got pretty silly.” Russia’s 10-year gold itch sends hoard to highest of Putin’s era

Bloomberg foreign currency for more than two years. in an interview last year that a portion of Moscow It’s one of a handful of central banks to reserves is held in gold to ensure their keep the faith as global demand for the diversification. Its gold holdings are all precious metal fell to a two-year low in stored inside Russia, and the management Vladimir Putin is doing his part to keep the the second quarter. But what may matter of investments in precious metals is con- upswing in gold alive. most is that gold is as geopolitics-proof an ducted separately from foreign-currency Since the Russian president went on a investment as any in the age of sanctions assets, according to the central bank’s geopolitical off ensive in Ukraine in 2014, and a deepening rift with the US. website. the haven asset had its first annual gain “Gold is an asset that is independent of Although gold is still up 12% in 2017, in four years in 2016 and is on track for any government and, in eff ect, given what prices in September touched the lowest another in 2017. is usually held in reserves, any western since August and suff ered their biggest A beneficiary of economic and political government,” said Matthew Turner, metals monthly loss this year. Plans by the US perils from North Korea to Brexit, it’s analyst at Macquarie Group in London. Federal Reserve to tighten monetary among the top-performing commodities “This might appeal given Russia has faced policy are sapping the appeal of the this year. financial sanctions.” non-interest-bearing metal as the dollar Meanwhile, the Bank of Russia has more Besides being the largest off icial buyer rebounds. than doubled the pace of gold purchases, of gold, Russia is also among the world’s The high share of gold in Russia’s bringing the share of bullion in its interna- three biggest producers, with the central reserves doesn’t worry Fitch Ratings, the tional reserves to the highest of Putin’s 17 bank purchasing from domestic miners only major credit assessor that ranks the years in power, according to World Gold through commercial banks and not in the country above junk. Council data. In the second quarter alone, open market. The headquarters of Russia’s central bank in Moscow. Bank of Russia has more than doubled the pace of gold purchases, “In the end, reserves have to be liquid,” it accounted for 38% of all gold purchased Since starting to accelerate bullion bringing the share of bullion in its international reserves to the highest of Putin’s 17 years in power, according to data. said Erich Arispe, director at Fitch’s sover- by central banks. purchases in 2007, Russia’s holdings have eigns and supranationals group. Similar to The gold rush is allowing the Bank of more than quadrupled to 1,716 tonnes combined, according to the World Gold buying continues at a similar pace, the 200 tonnes purchased annually in 2015 other commodities, gold “can be liquid as Russia to continue growing its reserves at the end of June, just behind China Council. That brought its share in Russia’s World Gold Council said the full-year and 2016. The Bank of Russia declined to well. So at this point, we don’t detect any while abstaining from purchases of and more than Turkey, India and Mexico $427bn reserves to near 17%. If Russia’s increase in 2017 “could closely match” the comment. Governor Elvira Nabiullina said concern about reserves.” Gulf Times 6 Monday, October 2, 2017 BUSINESS

Bond market gets double-dose of mystery with storm-impacted jobs

Bloomberg according to a Bloomberg survey. or tops expectations, that just lines up level since July. The Bloomberg Bar- Steven Mnuchin met with former Fed ployment picture may be easier. New York Ordinarily, that would be cause for with the three-week selloff in Treas- clays US Treasury Total Return index Governor Kevin Warsh about suc- What to Watch: Jobs data is the alarm about the pace of economic uries, the longest slide since May. The suff ered its biggest monthly decline ceeding Yellen when her term expires. main focus, though other fi gures will growth. But with the storms’ devasta- risk is if it misses the already-de- since November as traders boosted Warsh is the front-runner in the pre- also shine a light on the state of the irst, bond traders had to deal with tion so well-known, traders will prob- pressed estimate, strategists say. That wagers that the Fed is committed to a dictions markets and is seen as more economy on October 2. stubbornly low infl ation, which ably look past the slowdown and focus could spark a rally, especially after data faster pace of rate hikes. hawkish on infl ation. A decision is Markit US manufacturing PMI, con- FFederal Reserve Chair Janet on the tone of Fed speakers and any last week showed the Fed’s preferred The odds that policy makers tight- coming in two to three weeks, Trump struction spending, ISM manufactur- Yellen called a “mystery.” progress on the Trump administra- infl ation gauge is still hovering near the en again in December are about 65%, told reporters on Friday. ing, new orders and prices paid on Oc- This week they’ll have a second puz- tion’s tax plan, said Timothy High at lowest level in a year. based on overnight index swaps and Granted, right now there isn’t much tober 4. zle to solve: how to trade a jobs report BNP Paribas. “The risks are asymmetric, a weak the eff ective fed funds rate. The prob- to be hawkish about on infl ation. The ADP employment, MBA mortgage that analysts predict will be weak due “Any number good or bad is likely number likely leads to a rally, while ability climbed close to 70% last week. mystery only deepened on Friday, as applications and Markit US services to the havoc wrought by Hurricanes to be met with some skepticism,” said an at or above-consensus print will That leads to another head-scratch- the personal consumption expendi- and composite PMI on October 5. Harvey and Irma. Subadra Rajappa, head of US rates be taken with a grain of salt,” Rajappa er for bond traders: handicapping the tures price index came in at 1.4% in Initial jobless claims, trade balance, US employers probably added about strategy at Societe Generale. said. next Fed chair. Two-year yields rose August, the sixth straight month below factory orders, durable goods orders, 85,000 nonfarm workers in September, So, how will the bond market react The 10-year Treasury yield ended Friday on reports that President Don- the Fed’s target. capital goods orders and Bloomberg the smallest increase in six months, to Friday’s payrolls report? If it meets the week at 2.33%, the highest closing ald Trump and Treasury Secretary For traders, deciphering the em- consumer comfort on October 6.

Johnson, factory data could preside When it comes to US stocks, over pound’s fate this week

Bloomberg growth trumps quality London

Reuters What do UK Foreign Secretary Boris New York Johnson and manufacturing data have in common? They will both be the focus of pound traders this week. S investors are not rewarding Sterling pared its biggest monthly companies for generating good gain in at least two years on Friday Uearnings consistently, opting as disappointing economic numbers instead for a stockpicking strategy exacerbated uncertainty surround- that might be called “growth at a high ing the Brexit talks. cost.” With the ruling Conservative High-quality stocks selected for Party’s annual conference start- their strong balance sheets and sta- ing Sunday, and a host of reports ble earnings have appreciated just including sentiment surveys for the 12% this year, according to Goldman construction and services industries Sachs Group, while the broader S&P through the week, the pound could 500 benchmark index has returned be pulled in conflicting directions, 13.8%. But investors cannot seem to according to strategists. stop throwing money at companies Britain’s divorce negotiations improving their sales fastest: a group with the European Union are set to of such equities tracked by Goldman dominate the four-day Conservative Sachs has surged 20%. Put another conference, with the gathering also way, discriminating investors who closely scrutinised for any manoeu- have chosen companies with stable vrings by potential rivals against earnings prospects are being pun- Prime Minister Theresa May’s leader- ished. ship after the disastrous general This lagging interest in qual- election result in June. ity stocks has even whipsawed well- The pound was whipsawed last known fund managers; Whitney Til- month on media reports that John- son said this week he was shutting son considered resigning after set- down his Kase Capital Management ting out his own competing agenda hedge fund. for Brexit. “Historically, I have invested in The event “will be watched to see high-quality, safe stocks at good if May has the ability to pull the party prices as well as lower-quality ones behind her,” said Jane Foley, head at distressed prices,” Tilson wrote of currency strategy at Rabobank. to investors. “Given the high prices “Right now the signs do not look and complacency that currently good.” Any challenge to May’s lead- prevail in the market, however, my ership at the conference could send favourite safe stocks (like Berkshire sterling lower, she said. Hathaway and Mondelez) don’t The pound fell against most of its feel cheap, and my favourite cheap Group-of-10 peers on Friday after stocks (like Hertz and Spirit Air- Pedestrians walk past the New York Stock Exchange. US investors are not rewarding companies for generating good earnings consistently, opting instead for a data showed Britain’s current- lines) don’t feel safe. stockpicking strategy that might be called “growth at a high cost.” account deficit widened in the Hence, my decision to shut down.” second quarter and the economy Yet some managers are betting that some of those policies by gradually re- small winner’s circle of lesser-known for every dollar of earnings per share “When you see these huge head- grew at its slowest annual pace in complacent markets could be shaken ducing its bond holdings. Pacer Finan- names like Celgene Corp and Equinix anticipated over the next 12 months, lines on big investors and hedge funds four years. from their zombie-like slumber as cial is one of a several investment fi rms Inc These companies have all enjoyed compared to $20 for quality names and throwing in the towel because they That pared its gain versus the easy monetary policy and its backdrop betting that quality will matter again. robust sales growth in a US economy $13 for high adjusted free-cash-fl ow can’t make sense of the market, that dollar to less than 4% in September. of lower interest rates comes to an end. Its “Cash Cows” ETFs buy com- that’s below its boiling point, even as yield equities, according to Goldman is a sign that things are about to turn,” Still, that was its biggest monthly “In an environment like we’re in panies with strong cash fl ows and many factors disqualify some of them Sachs data. said Guggenheim Partners global chief increase since at least 2015 and has now — where no one really cares what healthy balance sheets. as quality stocks. Raff aele Savi, a portfolio manager investment offi cer Scott Minerd. been driven by hawkish Bank of things are worth — you may underper- Goldman Sachs’ global investment Netfl ix has had 12 straight quarters for BlackRock’s $647mn Global Long/ Part of the reason quality does not England rhetoric. form, but over time reality will set in,” research unit included companies of negative free cash fl ow, and the Short Equity Fund, said strong reve- work as well as it once did may be that Last year’s Conservative confer- said Sean O’Hara, director at Pacer Fi- such as retailer Ross Stores, pharma- company warned it may not see posi- nue growth is “more rare than at many more assets follow “quantitative” ence demonstrated its ability to move nancial Inc. “It always does.” cist CVS Health Corp and oil driller tive free cash fl ow “for many years” points in the past,” given US gross funds that rely on the same statistics the currency. At the gathering, May O’Hara said quality investments Schlumberger NV in its high-quality as it invests in original content like domestic product growth averaging measuring quality, said Brian Hayes, surprised markets by indicating a underperform when investors are group earlier this year. the science-fi ction drama “Stranger around 2% annually. equity strategist at Morgan Stanley & preference for a so-called hard Brexit. willing to buy stocks without regard Yet these companies have mostly Things.” The fund’s recent performance Co. Plus, it’s harder for investors to as- That spurred a sterling slump in the to their value, and that markets have not been star performers. Still, its subscriber growth contin- commentary said investors have been sess what an earnings report is saying. following days, a move exacerbated been supported by the US Federal Re- The market has been led by so- ues to exceed estimates, and the stock shunning company fundamentals. Technology giants, for instance, derive by computer-initiated sell orders, serve’s extraordinarily loose policies. called “FANG” stocks — like Face- has rocketed more than 45% this year. With the Fed’s interest-rate hiking more of their worth these days from leading to a flash crash in the cur- Earlier this month, the Fed, as ex- book Inc, Amazon.com, Netfl ix Inc Investors are paying a premium for cycle taking hold, investors are bracing services, patents and brand value, in- rency to a 31-year low on October 7. pected, said it would begin to reverse and Google parent Alphabet — and a the luxury of revenue growth: $24 for market dynamics to change. tangibles that can be hard to value.

SPOTLIGHT ON COMMODITIES Risk of crude oil correction looms as US exports spike

By Ole Hansen provided additional and general as they provide an opportunity to get has begun returning to normal after with Libya’s intent to boost production support when it said that strong involved for others who missed the hurricane disruptions, while the Kurdish by 30% before year-end — risk putting demand growth had led to second- initial move. vote in Northern Iraq raised concerns some downward pressure on Brent The month of September yielded no quarter demand outstripping supply for Gold has, however, been trading about supply being cut from the oil-rich relative to WTI. Brent has seen surging return for the Bloomberg Commodity the first time since 2014. sideways for the past four years, with region. demand from funds and passive long- index. However, behind its flat In China, iron ore and steel prices have the price averaging $1,235/oz during The Weekly Petroleum Status Report only investors after the return to an performance we saw a continued come under pressure ahead of the this time. With the latest developments, from the US Energy Information investor friendly backwardation. recovery in the energy sector being Communist Party’s twice-in-a-decade the chance of this range being broken Administration showed US crude oil In the week to September 19, funds held off set by losses in precious and congress on October 18. any time soon has diminished once exports jumped to a record, while a net long of 465mn barrels in Brent industrial metals. The Chinese government is likely again. surging imports of fuel together with crude oil, just 43mn below the February The metal sector, not least precious to continue to step up its eff orts to The early September rally fell short of increased refinery activity helped boost record. The failure to break higher back metals, reacted negatively to a hawkish combat pollution. This could lead to challenging the 2016 high at $1,375/oz, gasoline inventories. then eventually helped trigger a 13% speech from Fed chief Janet Yellen, further plant closures and production and so we are seeing an increased risk These two developments helped correction. which left the door wide open for a curbs during the most-polluting of the market staying range-bound for reduce WTI’s discount to Brent, with Given the improved outlook, we December rate hike. This was followed months from November to March. longer. increased export of WTI crude oil raise our Brent crude oil band by $5 by the tax plan announcement from These developments have hurt iron In the short term, we need to establish supporting a reduction in the tightness to a range between $50/barrel and the US president Donald Trump and the ore particularly hard at a time when whether the current weakness is more seen in the Brent spot market this $60/b. In the short term, and baring Republican party. cargoes from the world’s biggest suff ering from ample supply. Further than a relatively deep correction. month. any escalation in Northern Iraq, the US stocks rallied, while the dollar made producers in Australia and Brazil have developments in this spread hinges The positive technical outlook, albeit Increased availability of gasoline saw performance this past week has a renewed attempt to recover from been rising. initially on the direction of gold and challenged, should remain as long refinery margins return to pre-Harvey increased the risk of a correction which a 2½-year low in the belief that lower The persistent divergence between later on the potential response from gold holds above $1,260/oz, a level of levels, with tightness now only seen in potentially could see Brent reverse taxes would spur faster economic platinum and palladium has resulted in global car manufacturers. significant technical importance. middle distillates such as diesel. Lower lower towards $54/b. growth. In addition, bond yields jumped palladium trading above platinum for Although platinum trades at a record In the US, President Trump remains refinery margins could ultimately mean A developing shooting star on the on concerns an unfunded tax plan the first time in 15 years. discount to gold of more than $360, unpopular, and the successful passage lower demand for crude oil. weekly charts, both on Brent and could increase federal borrowing to Ever since the Volkswagen diesel its positive correlation to gold remains of his tax plan is nowhere near certain Oil fundamentals continue to improve, WTI crude, has increased the risk of a finance a bigger government deficit. emissions scandal broke a couple of higher than against palladium. So the as it will trigger a substantial rise in the with Q2 demand outstripping supply potential top and subsequent reversal. The biggest commodities news this years ago, palladium, which is the short-term direction of gold holds the government deficit. for the first time since 2014, according Such a reversal tends to be strongest past month, however, has been the preferred metal used in pollution key to which of the platinum group Crude oil traded higher for a fourth to the International Energy Agency. On when it forms after a series of at least recovery in the energy sector. The control for gasoline engines, has metals will perform. week as improved fundamentals that basis, a return to levels last seen three or more consecutive rising disruptions caused by Hurricane continued to outshine platinum Gold has now retraced half of the $150 continued to support friendlier during the unsuccessful attempt to rally candles with higher highs. Harvey in August helped boost (preferred in diesel engines). rally seen between July and early investor sentiment towards oil. Key during Q1 seems justified. especially Brent crude and fuel prices. These developments have led to tight September. Corrections, as long they developments this past week were Record US exports — if maintained „ Ole Hansen is head of commodity The International Energy Agency supply of palladium, while platinum is do not become too deep, are healthy signs that the US energy market during the coming weeks together strategy at Saxo Bank. Gulf Times Monday, October 2, 2017 7 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Saudi Re For Cooperative Rei 7.00 0.86 3,177,061 Boubyan Intl Industries Hold 46.00 0.44 105,100 Dhofar Beverages Co 0.26 0.00 - Solidarity Saudi Takaful Co 20.26 -0.59 306,250 Gulf Investment House Ksc 26.10 3.16 201 Construction Materials Ind 0.03 0.00 - Amana Cooperative Insurance 29.32 -0.81 1,378,003 Boubyan Bank K.S.C 453.00 2.95 1,433,159 Computer Stationery Inds 0.26 0.00 - Alabdullatif Industrial Inv 14.05 0.50 388,668 Ahli United Bank B.S.C 213.00 1.43 2,784,335 Bankmuscat Saog 0.39 -0.51 355,510 Saudi Printing & Packaging C 22.97 -1.12 298,891 Osos Holding Group Co 108.00 -0.92 10,000 Bank Sohar 0.16 0.00 - Sanad Cooperative Insurance 0.00 0.00 - Al-Eid Food Ksc 80.00 0.00 10,000 Bank Nizwa 0.09 -1.09 673,327 Saudi Paper Manufacturing Co 8.09 0.00 304,623 Qurain Petrochemical Industr 342.00 0.59 540,565 Bank Dhofar Saog 0.21 0.47 92,247 Alinma Bank 17.26 -1.20 28,507,248 Advanced Technology Co 0.00 0.00 - Areej Vegetable Oils Saoc 0.00 0.00 - Almarai Co 71.01 -0.43 421,261 Ekttitab Holding Co Sak 35.00 2.64 140,000 Aloula Co 0.53 0.00 - Falcom Saudi Equity Etf 28.50 -0.35 124,933 Kout Food Group Ksc 0.00 0.00 - Al-Omaniya Financial Service 0.28 0.00 - QATAR United International Transpo 23.15 -1.07 186,859 Real Estate Trade Centers Co 36.80 11.52 18,880 Al-Hassan Engineering Co 0.05 0.00 - Hsbc Amanah Saudi 20 Etf 29.50 0.00 - Acico Industries Co Kscc 270.00 1.50 15,000 Al-Fajar Al-Alamia Co 0.75 0.00 - Company Name Lt Price % Chg Volume Saudi International Petroche 15.59 -1.14 571,212 Kipco Asset Management Co 77.00 13.24 854 Al-Anwar Ceramic Tiles Co 0.14 2.22 226,375 Falcom Petrochemical Etf 26.70 0.00 - National Petroleum Services 824.00 -0.36 27,382 Al Suwadi Power 0.14 0.00 - Zad Holding Co 74.90 0.00 - Walaa Cooperative Insurance 27.00 -1.32 196,876 Alimtiaz Investment Co Kscc 176.00 0.00 12,579,224 Al Shurooq Inv Ser 0.00 0.00 - Widam Food Co 61.60 -2.22 2,500 Bank Al-Jazira 13.67 -1.01 1,762,178 Ras Al Khaimah White Cement 83.00 0.00 30,000 Al Sharqiya Invest Holding 0.11 0.94 37,000 Vodafone Qatar 8.43 -0.82 2,501,454 Al Rajhi Bank 65.68 -0.36 16,116,266 Kuwait Reinsurance Co Ksc 0.00 0.00 - Al Maha Petroleum Products M 1.18 0.00 5,000 United Development Co 14.76 -0.74 111,736 Samba Financial Group 23.70 -1.25 315,080 Kuwait & Gulf Link Transport 63.40 5.84 1,068,588 Al Maha Ceramics Co Saoc 0.29 0.00 - Salam International Investme 8.00 1.27 24,839 United Electronics Co 45.42 0.18 52,186 Human Soft Holding Co Ksc 3,980.00 1.02 2,500 Al Madina Takaful Co Saoc 0.10 -0.99 1,315,707 Qatar & Oman Investment Co 8.29 -0.12 26,841 Allied Cooperative Insurance 16.91 3.30 1,060,253 Automated Systems Co Kscc 170.00 0.00 6,356 Al Madina Investment Co 0.06 -1.59 114,565 Qatar Navigation 54.10 -2.35 17,300 Malath Insurance 13.58 -31.34 61,631 Metal & Recycling Co 108.00 0.00 11,640 Al Kamil Power Co 0.31 0.00 - Qatar National Cement Co 64.97 0.26 2,687 Alinma Tokio Marine 24.60 -0.12 68,590 Gulf Franchising Holding Co 70.00 0.00 103,403 Al Jazerah Services -Pfd 0.55 0.00 - Qatar National Bank 122.00 0.00 346,837 Arabian Shield Cooperative 41.58 0.43 50,569 Al-Enma’a Real Estate Co 40.40 0.50 314,661 Al Jazeera Steel Products Co 0.27 0.00 - Qatar Islamic Insurance 55.40 -0.59 77,350 Savola 45.60 -0.11 312,802 National Mobile Telecommuni 1,190.00 -2.06 2,503 Al Jazeera Services 0.16 0.64 95,000 Qatar Industrial Manufactur 41.50 3.47 2,192 Wafrah For Industry And Deve 22.86 -1.04 295,604 Al Bareeq Holding Co Kscc 0.00 0.00 - Al Izz Islamic Bank 0.07 1.43 349,455 Qatar International Islamic 50.85 -0.70 31,890 Fitaihi Holding Group 13.29 -0.08 52,720 Housing Finance Co Sak 0.00 0.00 - Al Buraimi Hotel 0.88 0.00 - Qatari Investors Group 36.00 -2.44 13,017 Tourism Enterprise Co/ Shams 30.57 -0.46 131,799 Al Salam Group Holding Co 49.40 2.92 845,510 Al Batinah Power 0.13 0.00 11,992 Qatar Islamic Bank 92.29 1.30 18,262 Sahara Petrochemical Co 13.79 -0.51 761,951 United Foodstuff Industries 0.00 0.00 - Al Batinah Hotels 1.13 0.00 - Qatar Gas Transport(Nakilat) 15.60 -1.20 186,723 Herfy Food Services Co 49.26 -1.44 92,514 Al Aman Investment Company 53.50 2.49 60,000 Al Batinah Dev & Inv 0.09 0.00 - Qatar General Insurance & Re 37.40 -4.05 4,200 Mashaer Holding Co Ksc 79.00 -1.25 206,298 Al Anwar Holdings Saog 0.15 0.66 99,932 Qatar German Co For Medical 8.00 0.00 1,059 Manazel Holding 38.20 2.96 397,157 Ahli Bank 0.17 0.00 - Qatar Fuel Qsc 100.95 0.30 7,647 Mushrif Trading & Contractin 0.00 0.00 - Acwa Power Barka Saog 0.79 0.00 - Qatar First Bank 7.08 -1.12 387,989 KUWAIT Tijara And Real Estate Inves 61.50 0.00 5,000 Abrasives Manufacturing Co S 0.05 0.00 - Qatar Electricity & Water Co 174.00 -0.46 9,754 Kuwait Building Materials 0.00 0.00 - A’saff a Foods Saog 0.59 0.00 - Qatar Cinema & Film Distrib 25.00 0.00 - Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 589.00 0.68 7,786 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Insurance Co 51.49 -1.62 21,353 Commercial Real Estate Co 98.00 1.14 6,998,539 Ooredoo Qsc 82.60 -0.24 155,383 Securities Group Co 0.00 0.00 - Future Communications Co 0.00 0.00 - National Leasing 12.28 -1.76 27,129 Sultan Center Food Products 0.00 0.00 - National International Co 76.40 -0.78 200,045 Mazaya Qatar Real Estate Dev 9.85 -1.20 63,846 Kuwait Foundry Co Sak 290.00 0.00 20,000 Taameer Real Estate Invest C 37.00 2.78 2,961,598 UAE Mesaieed Petrochemical Holdi 13.04 0.15 154,126 Kuwait Financial Centre Sak 109.00 0.00 1,400 Gulf Cement Co 81.00 0.00 150,000 Al Meera Consumer Goods Co 145.00 1.04 17,632 Ajial Real Estate Entmt 151.00 0.00 5,000 Heavy Engineering And Ship B 216.00 0.47 466,137 Company Name Lt Price % Chg Volume Medicare Group 68.91 -2.39 3,489 Gulf Glass Manuf Co -Kscc 0.00 0.00 - Refrigeration Industries & S 0.00 0.00 - Mannai Corporation Qsc 64.04 -9.99 6,476 Kuwait Finance & Investment 48.80 3.83 43,499 National Real Estate Co 137.00 0.74 3,156,364 Waha Capital Pjsc 1.72 0.00 100,000 Masraf Al Rayan 36.64 -1.29 177,061 National Industries Co Ksc 180.00 2.86 87,176 Al Safat Energy Holding Comp 40.00 10.19 360,516 United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 12.00 -2.83 16,610 Kuwait Real Estate Holding C 38.90 3.73 157,668 Kuwait National Cinema Co 1,340.00 0.00 1,753 United Arab Bank Pjsc 1.90 14.46 99,481 Industries Qatar 92.89 1.31 65,163 Securities House/The 61.60 6.21 5,744,220 Danah Alsafat Foodstuff Co 70.70 0.00 76,800 Union National Bank/Abu Dhab 4.22 -0.94 26,747 Islamic Holding Group 43.70 -6.72 26,426 Boubyan Petrochemicals Co 674.00 1.20 250,354 Independent Petroleum Group 345.00 0.00 9,958 Union Insurance Co 1.86 0.00 - Investment Holding Group 8.19 -2.50 977,394 Al Ahli Bank Of Kuwait 309.00 -0.32 35,000 Kuwait Real Estate Co Ksc 64.00 0.47 2,711,633 Union Cement Co 1.35 0.00 5,000 Gulf Warehousing Company 43.00 0.68 27,825 Ahli United Bank (Almutahed) 419.00 0.96 122,766 Salhia Real Estate Co Ksc 365.00 1.67 115,000 Umm Al Qaiwain Cement Indust 1.18 0.00 - Gulf International Services 20.58 2.95 577,671 National Bank Of Kuwait 786.00 3.29 7,810,322 Gulf Cable & Electrical Ind 518.00 -0.38 84,869 Sharjah Islamic Bank 1.37 0.00 - Ezdan Holding Group 10.54 0.38 965,373 Commercial Bank Of Kuwait 393.00 -5.30 135,705 Al Nawadi Holding Co Ksc 0.00 0.00 - Sharjah Insurance Company 3.49 0.00 - Doha Insurance Co 13.91 0.00 - Kuwait International Bank 251.00 1.62 2,561,500 Kuwait Finance House 613.00 2.00 10,403,007 Sharjah Group 1.22 -9.63 20,000 Doha Bank Qpsc 28.80 -0.69 285,621 Gulf Bank 242.00 1.26 6,582,723 Gulf North Africa Holding Co 35.40 1.72 50,000 Sharjah Cement & Indus Devel 1.03 -8.04 5,500 Dlala Holding 17.13 -0.29 546,234 Al-Massaleh Real Estate Co 39.90 5.00 540 Hilal Cement Co 190.00 0.00 6,606 Ras Al-Khaimah National Insu 4.10 0.00 - Commercial Bank Pqsc 29.00 -0.38 30,908 Al Arabiya Real Estate Co 36.50 -1.08 1,684,550 Osoul Investment Kscc 62.00 -1.27 129,000 Ras Al Khaimah White Cement 1.08 0.00 - Barwa Real Estate Co 31.72 -1.06 144,990 Kuwait Remal Real Estate Co 65.10 0.15 120,000 Gulf Insurance Group Ksc 800.00 0.00 2 Ras Al Khaimah Ceramics 2.37 -1.25 1,940 Al Khaleej Takaful Group 14.10 -0.07 26,178 Alkout Industrial Projects C 615.00 0.00 16,321 Kuwait Food Co (Americana) 1,980.00 0.00 1 Ras Al Khaimah Cement Co Psc 0.79 5.33 500 Aamal Co 8.30 -2.47 222,362 A’ayan Real Estate Co Sak 82.50 0.00 80,500 Umm Al Qaiwain Cement Indust 0.00 0.00 - Ras Al Khaima Poultry 3.70 0.00 - Investors Holding Group Co.K 23.30 1.30 2,182,890 Aayan Leasing & Investment 45.20 0.44 9,939,385 Rak Properties 0.69 0.00 1,479,240 Al-Mazaya Holding Co 118.00 2.61 3,685,794 Alrai Media Group Co Ksc 125.00 -1.57 12,700 Ooredoo Qsc 80.00 0.00 - SAUDI ARABIA Al-Madar Finance & Invt Co 24.50 4.70 176,651 National Investments Co 109.00 0.00 2,554,025 Oman & Emirates Inv(Emir)50% 0.58 0.00 - Gulf Petroleum Investment 37.80 1.07 385,860 Commercial Facilities Co 185.00 -2.12 75 Nbad Oneshare Msci Uae Ucits 6.20 0.00 - National Takaful Company 0.00 Company Name Lt Price % Chg Volume Mabanee Co Sakc 799.00 1.14 186,852 Taiba Kuwaiti Holding Co Ksc 0.00 0.00 - 0.53 - City Group 0.00 0.00 - Afaq Educational Services Co 108.00 0.00 2,500 National Marine Dredging Co 4.25 0.00 - United Wire Factories Compan 17.77 -0.45 93,837 Inovest Co Bsc 119.00 -1.65 984,602 Kuwait Pillars For Financial 0.00 0.00 - National Investor Co/The 0.51 0.00 - Etihad Etisalat Co 17.33 -0.17 277,299 Kuwait Gypsum Manufacturing 0.00 0.00 - Yiaco Medical Co. K.S.C.C 0.00 0.00 - National Corp Tourism & Hote 2.14 0.00 - Dar Al Arkan Real Estate Dev 6.59 1.38 24,089,837 Al-Deera Holding Co 31.00 -7.46 686,715 Dulaqan Real Estate Co 0.00 0.00 - National Bank Of Umm Al Qaiw 2.95 0.00 - Saudi Hollandi Bank 0.00 0.00 - Alshamel International Hold 0.00 0.00 - National Bank Of Ras Al-Khai 4.65 0.00 2,000 Rabigh Refining And Petroche 13.69 -0.44 1,349,070 Mena Real Estate Co 0.00 0.00 - National Bank Of Fujairah 3.70 0.00 - Banque Saudi Fransi 29.68 -1.79 191,556 National Slaughter House 0.00 0.00 - First Abu Dhabi Bank Pjsc 0.00 0.00 - Saudi Enaya Cooperative Insu 23.15 -0.90 299,984 Amar Finance & Leasing Co 49.00 0.00 10,000 OMAN Methaq Takaful Insurance 0.79 -1.25 308,914 Manazel Real Estate Pjsc 0.50 -3.85 4,504,203 Mediterranean & Gulf Insuran 33.06 -1.17 279,513 United Projects For Aviation 669.00 0.00 5,243 Company Name Lt Price % Chg Volume Saudi British Bank 26.51 -2.14 55,265 National Consumer Holding Co 0.00 0.00 - Invest Bank 2.40 -2.83 22,957,126 Mohammad Al Mojil Group Co 0.00 0.00 - Amwal International Investme 39.90 0.00 651 Voltamp Energy Saog 0.58 0.00 90,451 Intl Fish Farming Co Pjsc 1.50 0.67 194,808 Red Sea International Co 20.77 1.27 240,356 Jeeran Holdings 0.00 0.00 - United Power/Energy Co- Pref 1.00 0.00 - Insurance House 0.86 0.00 - Takween Advanced Industries 11.54 -0.35 247,353 Equipment Holding Co K.S.C.C 46.80 3.08 136,000 United Power Co Saog 3.55 0.00 - Gulf Pharmaceutical Ind Psc 2.37 -9.89 11,300 Sabb Takaful 28.86 -0.55 144,921 Nafais Holding 412.00 -20.00 114 United Finance Co 0.14 0.00 - Gulf Medical Projects 2.19 0.00 - Saudi Arabian Fertilizer Co 60.62 -1.04 77,210 Safwan Trading & Contracting 0.00 0.00 - Ubar Hotels & Resorts 0.13 0.00 - Gulf Cement Co 0.98 0.00 - National Gypsum 12.39 -0.16 72,763 Arkan Al Kuwait Real Estate 84.00 1.20 2,200 Takaful Oman 0.17 0.00 - Fujairah Cement Industries 1.05 0.00 - Saudi Ceramic Co 26.01 -1.55 79,378 Gfh Financial Group Bsc 130.00 -2.99 1,610,896 Taageer Finance 0.12 0.88 15,000 Fujairah Building Industries 1.56 0.00 - National Gas & Industrializa 32.10 1.04 92,937 Energy House Holding Co Kscp 34.30 0.00 100 Sweets Of Oman 1.34 0.00 - Foodco Holding Pjsc 5.22 0.00 - Saudi Pharmaceutical Industr 32.90 -0.24 39,103 Kuwait Slaughter House Co 0.00 0.00 - Sohar Power Co 0.16 0.00 370 First Gulf Bank 0.00 0.00 - Thimar 34.28 -0.12 137,705 Kuwait Co For Process Plant 165.00 0.00 20,000 Sohar Poultry 0.21 0.00 - Finance House 1.50 0.00 29,000 National Industrialization C 15.57 -0.45 537,519 Al Maidan Dental Clinic Co K 0.00 0.00 - Smn Power Holding Saog 0.69 0.00 - Eshraq Properties Co Pjsc 0.73 -5.19 29,398,530 Saudi Transport And Investme 0.00 0.00 - National Ranges Company 0.00 0.00 - Shell Oman Marketing - Pref 1.05 0.00 - Emirates Telecom Group Co 17.55 1.45 855,418 Saudi Electricity Co 23.75 -0.63 767,186 Al-Themar Real International 71.00 0.00 2,564,408 Shell Oman Marketing 1.88 0.00 - Emirates Insurance Co. (Psc) 6.00 0.00 - Saudi Arabia Refineries Co 34.08 -0.99 93,768 Al-Ahleia Insurance Co Sakp 425.00 0.00 25,000 Sharqiyah Desalination Co Sa 3.96 0.00 - Emirates Driving Company 7.60 0.00 - Arriyadh Development Company 18.02 -0.39 100,094 Wethaq Takaful Insurance Co 43.00 0.00 14,399 Sembcorp Salalah Power & Wat 0.22 0.00 25,000 Dana Gas 0.73 -3.95 11,966,982 Al-Baha Development & Invest 28.16 -1.09 328,795 Salbookh Trading Co Kscp 63.30 0.00 12,050 Salalah Port Services 0.60 0.00 - Commercial Bank Internationa 0.90 0.00 - Saudi Research And Marketing 71.18 -0.38 143,832 Aqar Real Estate Investments 71.00 0.00 25,000 Salalah Mills Co 1.33 0.00 400 Bank Of Sharjah 1.23 0.82 298,277 Aldrees Petroleum And Transp 27.52 -1.01 77,624 Hayat Communications 0.00 0.00 - Salalah Beach Resort Saog 1.38 0.00 - Axa Green Crescent Insurance 0.54 0.00 - Saudi Vitrified Clay Pipe Co 49.19 -2.69 95,437 Kuwait Packing Materials Mfg 0.00 0.00 - Sahara Hospitality 2.50 0.00 - Arkan Building Materials Co 0.66 1.54 216,500 Jarir Marketing Co 153.46 -0.35 17,896 Soor Fuel Marketing Co Ksc 122.00 1.67 38,358 Renaissance Services Saog 0.23 0.00 - Alkhaleej Investment 3.70 0.00 - Arab National Bank 23.72 -1.33 58,204 Alargan International Real 0.00 0.00 - Raysut Cement Co 0.91 0.00 15,000 Aldar Properties Pjsc 2.29 -1.72 5,646,356 Yanbu National Petrochemical 58.32 -1.72 490,258 Burgan Co For Well Drilling 82.00 0.00 1,355 Port Service Corporation 0.21 5.05 268,520 Al Wathba National Insurance 12.75 0.00 - Arabian Cement 33.60 -0.71 385,826 Kuwait Resorts Co Kscc 80.00 0.00 129,541 Phoenix Power Co Saoc 0.12 -1.61 14,206 Al Khazna Insurance Co 0.26 -7.14 1,901,139 Middle East Specialized Cabl 8.99 1.35 322,961 Oula Fuel Marketing Co 122.00 1.67 147,397 Packaging Co Ltd 2.21 0.00 - Al Fujairah National Insuran 300.00 0.00 - Al Khaleej Training And Educ 20.80 -1.52 228,574 Palms Agro Production Co 89.90 0.00 1 Ooredoo 0.49 2.94 1,033,433 Al Dhafra Insurance Co. P.S. 3.84 0.00 - Al Sagr Co-Operative Insuran 27.26 -0.51 124,577 Ikarus Petroleum Industries 0.00 0.00 - Ominvest 0.46 0.00 3,000 Al Buhaira National Insuranc 2.20 0.00 - Trade Union Cooperative Insu 21.47 1.95 386,141 Mubarrad Transport Co 73.80 0.41 29,795 Oman United Insurance Co 0.34 0.00 505,942 Al Ain Ahlia Ins. Co. 42.00 0.00 - Arabia Insurance Cooperative 16.75 0.66 212,927 Al Mowasat Health Care Co 400.00 0.00 33,988 Oman Textile Holding Co Saog 0.00 0.00 - Agthia Group Pjsc 5.20 -2.26 262,825 Saudi Chemical Company 34.78 -0.63 30,086 Shuaiba Industrial Co 280.00 0.00 10,000 Oman Telecommunications Co 1.30 1.96 353,679 Abu Dhabi Ship Building Co 2.36 0.00 - Fawaz Abdulaziz Alhokair & C 43.51 0.86 200,895 Aan Digital Services Co 0.00 0.00 - Oman Refreshment Co 1.91 0.00 - Abu Dhabi Natl Co For Buildi 0.45 0.00 - Bupa Arabia For Cooperative 116.05 -1.75 97,872 First Takaful Insurance Co 69.00 0.00 48,280 Oman Packaging 0.28 0.00 - Abu Dhabi National Takaful C 4.95 5.32 447 Wafa Insurance 24.34 -1.38 486,261 Kuwaiti Syrian Holding Co 35.50 -0.28 772,500 Oman Orix Leasing Co. 0.17 0.00 - Abu Dhabi National Insurance 4.00 0.00 - Jabal Omar Development Co 67.01 -0.31 53,767 National Cleaning Company 48.60 -3.57 50,000 Oman Oil Marketing Company 1.66 0.00 - Abu Dhabi National Hotels 2.65 -1.49 2,000 Saudi Basic Industries Corp 101.70 -1.09 6,409,691 Eyas For High & Technical Ed 540.00 0.00 19,490 Oman National Engineering An 0.16 4.67 426,500 Abu Dhabi National Energy Co 0.67 0.00 2,289,673 Saudi Kayan Petrochemical Co 9.00 -0.33 2,901,204 United Real Estate Company 99.00 0.00 111,249 Oman Investment & Finance 0.16 -0.61 276,100 Abu Dhabi Islamic Bank 3.75 -0.53 25,309 Etihad Atheeb Telecommunicat 7.96 0.00 - Agility 898.00 1.24 1,201,740 Oman Intl Marketing 0.52 0.00 - Co For Cooperative Insurance 97.15 -0.75 267,493 Kuwait & Middle East Fin Inv 28.50 0.00 10 Oman Hotels & Tourism Co 0.44 0.00 - National Petrochemical Co 18.00 -1.10 218,283 Fujairah Cement Industries 74.00 -1.99 351,000 Oman Foods International 0.00 0.00 - Gulf Union Cooperative Insur 18.67 -1.32 131,672 Livestock Transport & Tradng 280.00 0.00 5,001 Oman Flour Mills 0.93 0.00 - BAHRAIN Gulf General Cooperative Ins 19.12 -0.83 232,934 International Resorts Co 34.00 1.49 180,314 Oman Fisheries Co 0.11 -0.88 1,215,840 Basic Chemical Industries 20.96 -0.95 66,069 National Industries Grp Hold 160.00 3.23 12,339,251 Oman Fiber Optics 0.00 0.00 - Company Name Lt Price % Chg Volume Saudi Steel Pipe Co -0.24 Marine Services Co Ksc 0.00 Oman Europe Foods Industries 1.00 0.00 - 16.92 38,986 0.00 - Zain Bahrain Bscc 0.00 0.00 - Buruj Cooperative Insurance -0.26 Warba Insurance Co 0.00 Oman Education & Training In 0.15 0.00 - 33.95 119,303 0.00 - United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co 1.44 Kuwait United Poultry Co 0.00 Oman Chromite 3.64 0.00 - 161.02 9,310 0.00 - United Gulf Investment Corp 0.00 0.00 - Southern Province Cement Co -0.74 First Dubai Real Estate Deve 1.86 Oman Chlorine 0.49 0.00 - 49.57 13,914 49.20 20,010 United Gulf Bank 0.00 0.00 - Maadaniyah -0.27 Al Arabi Group Holding Co 0.00 Oman Ceramic Company 0.42 0.00 - 22.26 73,836 92.00 21,755 Trafco Group Bsc 0.00 0.00 - Yamama Cement Co -0.60 Kuwait Hotels Sak 0.00 Oman Cement Co 0.41 1.00 5,300 16.48 93,656 0.00 - Takaful International Co 0.00 0.00 - Jazan Development Co -0.81 Mobile Telecommunications Co 0.98 Oman Cables Industry 1.50 0.00 - 18.35 392,066 517.00 9,764,462 Taib Bank -$Us 0.00 0.00 - Zamil Industrial Investment 0.00 Al Safat Real Estate Co 0.00 Oman Agricultural Dev 0.00 0.00 - 26.45 31,214 0.00 - Seef Properties 0.23 -0.85 195,000 Alujain Corporation (Alco) 0.00 Tamdeen Real Estate Co Ksc 0.00 Oman & Emirates Inv(Om)50% 0.09 -1.15 17,000 22.05 - 402.00 852 Securities & Investment Co 0.00 0.00 - Tabuk Agricultural Developme -0.29 Al Mudon Intl Real Estate Co 0.26 Natl Aluminium Products 0.17 0.00 - 13.53 332,148 38.80 115,886 National Hotels Co 0.00 0.00 - United Co-Operative Assuranc -0.41 Kuwait Cement Co Ksc -4.14 National Securities 0.04 0.00 - 14.52 101,941 440.00 10,000 National Bank Of Bahrain Bsc 0.66 0.77 47,246 Qassim Cement/The -0.34 Sharjah Cement & Indus Devel 0.00 National Real Estate Develop 5.00 0.00 - 44.05 4,715 85.00 1 Nass Corp Bsc 0.12 2.52 25,100 Saudi Advanced Industries -0.23 Kuwait Portland Cement Co 0.00 National Pharmaceutical 0.11 0.00 - 13.04 204,881 995.00 6,335 Khaleeji Commercial Bank 0.11 0.91 219,000 Kingdom Holding Co -0.38 Educational Holding Group 1.62 National Mineral Water 0.05 0.00 - 10.48 92,069 313.00 100,348 Ithmaar Holding Bsc 0.13 0.00 49,000 Saudi Arabian Amiantit Co -0.73 Bahrain Kuwait Insurance 0.00 National Hospitality Institu 0.00 0.00 - 6.84 398,272 0.00 - Investcorp Bank -$Us 8.25 -5.71 378,800 Al Jouf Agriculture Developm 0.32 Asiya Capital Investments Co -7.39 National Gas Co 0.29 0.00 - 28.19 126,590 42.60 467,802 Inovest Co Bsc 0.00 0.00 - Saudi Industrial Development -1.02 Kuwait Investment Co 0.00 National Finance Co 0.14 0.00 - 10.71 213,120 106.00 40,042 Gulf Monetary Group 0.00 0.00 - Bishah Agriculture 0.00 Burgan Bank 1.70 National Detergent Co Saog 0.69 0.00 - 0.00 - 359.00 328,640 Gulf Hotel Group B.S.C 0.52 0.00 10,000 Riyad Bank -0.26 Kuwait Projects Co Holdings 0.28 National Biscuit Industries 3.75 0.00 - 11.72 460,701 358.00 124,436 Gfh Financial Group Bsc 0.45 2.27 131,000 The National Agriculture Dev 2.64 Al Madina For Finance And In -1.53 National Bank Of Oman Saog 0.21 -0.96 99,528 30.77 803,082 45.00 137,500 Esterad Investment Co B.S.C. 0.11 0.00 30,000 Halwani Bros Co -0.71 Kuwait Insurance Co 0.00 Muscat Thread Mills Co 0.08 0.00 - 49.21 9,031 275.00 167,850 Delmon Poultry Co 0.00 0.00 - Arabian Pipes Co -0.23 Al Masaken Intl Real Estate 0.00 Muscat National Holding 0.86 0.00 - 13.10 285,452 71.00 301 Bmmi Bsc 0.77 0.00 2,000 Eastern Province Cement Co -0.42 Intl Financial Advisors 0.53 Muscat Gases Company Saog 0.56 0.00 - 23.98 3,983 38.00 1,199,462 Bmb Investment Bank 0.00 0.00 - Al Gassim Investment Holding 0.00 First Investment Co Kscc -0.43 Muscat Finance 0.11 -0.88 173,200 0.00 - 46.10 1,027,867 Bbk Bsc 0.40 0.00 34,908 Filing & Packing Materials M -0.43 Al Mal In 3.09 Majan Glass Company 0.18 0.00 - 34.55 48,864 vestment Company 33.40 1,000,720 Bankmuscat Saog 0.00 0.00 - Saudi Cable Co 0.00 -0.21 Majan College 0.46 0.00 - 10.81 - Bayan Investment Co Kscc 48.10 1,542,262 Banader Hotels Co 0.06 0.00 300,500 Tihama Advertising & Public -0.47 2.63 Hsbc Bank Oman 0.12 0.00 - 46.28 103,291 Egypt Kuwait Holding Co Sae 195.00 190,000 Bahrain Tourism Co ` 0.00 - Saudi Investment Bank/The -1.46 0.66 Hotels Management Co Interna 1.25 0.00 - 14.80 30,000 Coast Investment Development 45.90 1,479,350 Bahrain Telecom Co 0.20 0.00 120,000 Astra Industrial Group -0.12 -1.96 Gulf Stone 0.12 0.00 - 16.64 41,327 Privatization Holding Compan 60.00 8,561,779 Bahrain Ship Repair & Engin 0.00 0.00 - Saudi Public Transport Co -0.48 0.00 Gulf Plastic Industries Co 0.00 0.00 - 14.52 649,188 Kuwait Medical Services Co 0.00 - Bahrain National Holding 0.00 0.00 - Taiba Holding Co 0.48 1.16 Gulf Mushroom Company 0.31 0.00 - 41.89 55,490 Injazzat Real State Company 87.00 4,000 Bahrain Kuwait Insurance 0.00 0.00 - Saudi Industrial Export Co -0.88 0.00 Gulf Investments Services 0.08 0.00 298,572 31.65 68,164 Kuwait Cable Vision Sak 28.00 18,990 Bahrain Islamic Bank 0.14 0.00 58,874 Saudi Real Estate Co 1.17 0.00 Gulf Invest. Serv. Pref-Shar 0.11 0.00 - 20.67 154,989 Sanam Real Estate Co Kscc 41.50 3,640 Bahrain Flour Mills Co 0.00 0.00 - Saudia Dairy & Foodstuff Co 1.31 0.78 Gulf International Chemicals 0.22 0.00 - 121.00 21,590 Ithmaar Holding Bsc 38.80 496,769 Bahrain Family Leisure Co 0.00 0.00 - National Shipping Co Of/The -0.51 0.00 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - 31.31 233,085 Aviation Lease And Finance C 366.00 90,981 Bahrain Duty Free Complex 0.77 0.00 20,000 Methanol Chemicals Co -0.14 0.58 Global Fin Investment 0.16 0.00 - 7.05 561,922 Arzan Financial Group For Fi 34.60 529,710 Bahrain Commercial Facilitie 0.70 0.72 5,000 Ace Arabia Cooperative Insur -0.89 0.00 Galfar Engineering&Contract 0.09 4.44 8,441,505 49.07 56,267 Ajwan Gulf Real Estate Co 60.00 30,000 Bahrain Cinema Co 1.22 0.00 5,000 Mobile Telecommunications Co 0.57 -0.20 Galfar Engineering -Prefer 0.39 0.00 - 8.81 1,381,878 Kuwait Business Town Real Es 49.80 993,987 Bahrain Car Park Co 0.00 0.00 - Saudi Arabian Coop Ins Co -0.79 0.00 Financial Services Co. 0.13 0.00 - 19.98 201,863 Future Kid Entertainment And 123.00 2,000 Arab Insurance Group(Bsc)-$ 0.49 0.00 30,634 Axa Cooperative Insurance -0.47 0.00 Financial Corp/The 0.10 0.00 - 21.14 137,704 Specialities Group Holding C 89.00 176,700 Arab Banking Corp Bsc-$Us 0.28 -1.75 418,603 Alsorayai Group -0.36 0.37 Dhofar University 0.00 0.00 - 8.32 167,736 Abyaar Real Eastate Developm 27.40 5,181,009 Aluminium Bahrain Bsc 0.50 -0.40 42,596 Weqaya For Takaful Insurance 0.00 0.00 Dhofar Tourism 0.49 0.00 - 0.00 - Dar Al Thuraya Real Estate C 204.00 10 Albaraka Banking Group 0.40 0.00 12,750 Bank Albilad -0.57 0.00 Dhofar Poultry 0.18 0.00 - 19.18 542,988 Al-Dar National Real Estate 0.00 - Al-Salam Bank 0.09 0.00 30,000 Al-Hassan G.I. Shaker Co -0.63 0.39 Dhofar Intl Development 0.32 0.00 12,320 12.63 183,471 Kgl Logistics Company Kscc 52.00 2,789,546 Al-Ahlia Insurance Co 0.22 0.00 10,220 Wataniya Insurance Co -0.13 1.92 Dhofar Insurance 0.20 0.00 - 31.86 209,264 Combined Group Contracting 530.00 5,900 Ahli United Bank B.S.C 0.71 0.00 345,000 Abdullah Al Othaim Markets 122.01 -0.48 6,418 Jiyad Holding Co Ksc 0.00 0.00 - Dhofar Fisheries & Food Indu 1.28 0.00 - Hail Cement 8.96 -0.44 125,748 Qurain Holding Co 0.00 0.00 - Dhofar Cattlefeed 0.19 0.00 - LATEST MARKET CLOSING FIGURES Gulf Times 14 Monday, October 2, 2017 BUSINESS

Battle intensifies to host London-based EU agencies after Brexit

Bloomberg November. The European Commission, spoils and feeds into a long EU tradition For example, regarding the Sweden’s the bloc’s remaining capitals and a by Helsinki, which already hosts Brussels the EU’s executive arm, published the of intense manoeuvring by member application for the EMA, the frequency ranging from two to 14 the European Chemicals Agency; assessment based on criteria including nations for the political and economic commission said in the accessibility flights a day, plus a public-transport Copenhagen, home of the European accessibility, availability of schools rewards that come with hosting pieces column that “the off er indicates the connection from the airport to the Environment Agency; and Stockholm, The contest among more than 20 and healthcare for staff families, and of Europe’s extensive regulatory availability of direct flights between proposed premises of “less than 16 where the European Centre for Disease European Union cities to host the bloc’s an assurance of operational readiness machinery. Stockholm and 23 EU capitals, with a minutes.” Prevention and Control is located, are drugs regulator and banking authority, when Britain leaves in March 2019. The EMA, which evaluates applications frequency ranging from three to 141 As for hotel space, the Bucharest off er long shots regardless of how suitable which are being forced from London by The commission stopped short of for new drugs and oversees the safety flights per week” and the availability mentions 10,000 “existing hotel rooms, the cities might be from a technical Brexit, heated up on Saturday with an a ranking, leaving more scope for of medicines, employs about 900 of 35,000 hotel rooms in the region ranging from exclusive hotels to mid- point of view. off icial assessment of the bids. political bargaining by the UK’s 27 EU people and attracts 36,000 visitors “ranging from large well-known hotel range accommodation.” By contrast, Bucharest, which is home The evaluation of applications by partners. a year to London from government, chains to small family hotels.” One of the criteria fixed for to no EU agency and is the capital of a 19 cities ranging from Stockholm “The assessment is fully based on science and industry. Stockholm also advertised a 20-minute the commission’s evaluation is medium-sized member state that joined to Bucharest seeking to lure the the information sent by the member The EBA works to align banking public transport connection between “geographical spread,” which touches the bloc relatively recently, may have a European Medicines Agency and of states,” the Brussels-based commission rules in the EU and has fewer than the airport and the central train station, on the highly political question of strong political hand when it comes to eight off ers — including from Dublin, said in a statement on its website. 200 employees. The commission’s according to the summary. balance among the northern, southern, the city’s bid for the EMA. Paris and Frankfurt — for the European “The agencies have also been consulted evaluation includes summaries of the For Romania’s off er, the commission eastern and western parts of Europe In addition to Dublin, Paris and Banking Authority sets the stage for in the process.” two sets of bids in grid form with factual said the bid shows the availability of when it comes to the location of EU Frankfurt, the bidders for the EBA deliberations by EU governments The campaign to woo the EMA and comments in bullet-point style under direct flights between Bucharest and agencies. include Brussels, Prague, Luxembourg, in October and a final decision in EBA is part of a battle for the Brexit each of the criteria. 23 EU capitals, connecting flights to On that count, the bids for the EMA Vienna and Warsaw.

Piraeus is said to set off Greek bad-loan Fox-Sky opponents market with large sale

Bloomberg Greek lenders are finally London selling assets and struggling af- filiates to shore up their balance sheets ahead of stress tests by Piraeus Bank, Greece’s biggest the Bank of Greece in February. challenge UK agency bank, is preparing to sell one The central bank is due to deter- of the largest-ever portfolios mine by June whether the four of soured property loans in the systemic lenders will need fresh country, according to people capital before the end of the with knowledge of the matter. country’s bailout programme. The bank hired UBS Group Piraeus aims to cut non- to advise on the sale, dubbed performing exposure to less than Project Amoeba, that involves €20bn by the end of 2020 from over merger decision debt with a face value of as €32.6bn in June through a mix of much as €1.5bn ($1.8bn), said sales, write-off s, restructurings, Bloomberg the people, who asked not to be collections, and liquidations, it London named because the plan is pri- said in a presentation this month. vate. The lender is reaching out Piraeus also plans a €500mn to international investors, asking covered bond next month, its key opponent of 21st them to sign non-disclosure first ever, the company said in a Century Fox’s £11.7bn agreements ahead of prelimi- statement earlier on Friday. The A($15.7bn) bid for Sky is nary bids, they said. notes will help to finance small- seeking a fresh investigation Spokesmen for Piraeus and and medium-size firms in Greece. into whether the pay-TV pro- UBS declined to comment on the Alpha Bank sold its Ionian vider would remain fi t to hold potential portfolio sale. Hotels unit late last year and in a broadcasting licence under The planned sale shows that January agreed to sell its Ser- the control of media billionaire the Athens-based lender is bian operations, while National Rupert Murdoch. stepping up eff orts to clean up Bank of Greece is selling assets Political advocacy group its balance sheet under chief in the Balkans, including its Avaaz is requesting a judicial executive off icer Christos Mega- Romanian and Albanian opera- review of telecommunication lou, who joined the company in tions, in order to slim down be- watchdog Ofcom’s June fi nding March after two predecessors fore the tests. Eurobank Ergasias that Sky is fi t and proper to hold resigned over a dispute with is seeking to off load €1.5bn of a licence, according to an Avaaz Paulson & Co Inc, one of the bad consumer loans and has statement. lender’s main shareholders. received bids for the assets. Murdoch, who already owns 39% of Sky, is trying to purchase the remainder through Fox, which has faced accusations of sexual and racial harassment at its news division. Volkswagen withdraws Ducati “Ofcom didn’t dig deep enough before declaring the Murdochs fi t to own even more sale amid unions’ opposition of our media,” said Alex Wilks, Avaaz campaign director. Bloomberg request to remain inside the “Repeated, large-scale scan- Milan VW group which should keep dals in the Murdoch empire in- investing in our company.” dicate that something is very Volkswagen considered sell- rotten at the core of their busi- olkswagen halted the ing Ducati as part of an asset nesses.” possible sale of its Duca- review that started last year The move by Avaaz comes as Vti motorcycle unit amid to examine options for opera- the UK’s Competition & Markets A pedestrian walks past a sign outside Sky headquarters in Isleworth, London. Media billionaire Rupert Murdoch, who already owns 39% of persistent opposition from its tions that aren’t a fi t for its car Authority conducts a separate Sky, is trying to purchase the remainder through Fox, which has faced accusations of sexual and racial harassment at its news division. powerful labour groups, ac- and truck focus. VW’s Audi six-month investigation into cording to an Italian union luxury division, which owns whether the deal would give Sky spokesman Andrew that Ofcom created an artifi- scandal-hit Fox News, saying his 21st Century Fox and Fox News leader. Ducati, hired Evercore Partners Murdoch too much infl uence Swailes declined to comment cially high threshold, allegedly organisation isn’t perfect, but chairman. Opponents of the deal “Ducati’s CEO told workers Inc to advise on strategic op- over UK media and probing Fox’s yesterday. without basis in law, that al- acted swiftly to tackle wrongdo- have cast a spotlight on the har- Friday that the VW supervisory tions, people familiar with the commitment to broadcasting On the fit-and-proper deci- lowed corporate governance ing. assment allegations at Fox News board decided to halt the sale matter said in April. A Ducati standards. sion, Avaaz argues that Ofcom failings at Fox to pass without His comments highlight as well as the past handling of process,” Bruno Papignani, re- offi cial declined to comment Culture Secretary Karen Bra- made factual errors in consid- serious challenge. generational change at his fa- the phone-hacking scandal at gional head of FIOM CIGL un- on the sale process, while VW dley has the fi nal say on clearing ering allegations of sexual and Earlier this month, Fox chief ther’s media empire, even as the News Corp, which is now sepa- ion, said in a phone interview. spokesman Eric Felber said the the merger after receiving the racial harassment at Fox News executive offi cer James Mur- 86-year-old maintains a grip rate from the US fi lm-and-tele- “IG Metall sustained and company doesn’t comment on CMA’s advice. in the US. Avaaz also argues doch defended his handling of on power as co-chairman of vision operation. helped Ducati workers in their market rumours.

Mercedes will deliver bag of Credit Agricole buys 3 Italian banks for $145mn coffee to you by drone in Zurich

Bloomberg unit of Daimler, is one of many businesses that Munich are racing to develop drone-delivery services, even as rules limit where the craft can fly. Amazon.com in December made its first-ever drone delivery — a television-streaming device Mercedes-Benz is taking the next step in an and a bag of popcorn — to a customer in the ambitious project to use drones for same-day UK, while convenience store chain 7-Eleven delivery, with a three-week pilot in Zurich that will last year flew a parcel of chicken sandwiches see mini copters shuttle bags of ground coff ee to and doughnuts to a private residence in Reno, fixed points in the city. Nevada. As part of the trial, customers can place an Many industries are researching potential uses order with Swiss online shopping platform of drones beyond dropping the latest Internet Siroop on selected items from retailer Black & shopping on people’s doorsteps, such as Blaze Coff ee Roasting Co. The roaster packs railroad-track inspections, spotting criminals on the order on site, rather than delivering the the run or organ delivery for hospitals, though a goods to Siroop’s logistics centre. Drones then regulatory structure for the aircraft is still in its fly to four fixed spots in inner-city Zurich about infancy. 10km away (6.2 miles), landing on the roofs For Mercedes, the pilotless craft are components of Mercedes-Benz Vito vans, which carry the of a van prototype featuring a suite of on-board parcel the last stretch, while the drones fly back systems like digital sorting equipment that could to Black & Blaze. cut in half costs for the final portion of a parcel’s “We have the incredible opportunity to do the journey. While the drones won’t directly deliver most comprehensive test of drone technology to a customer’s doorstep, they’ll skip much of in an urban environment to date,” Stefan the inner-city traff ic, and save one journey from A pedestrian passes a branch of Credit Agricole’s Cariparma bank in Rome. Credit Agricole secured a deal with the Italian national Maurer, who heads future transportation at the retailer to logistics centre. resolution fund to buy three local lenders for a combined €130mn ($145mn) to expand in its second-largest market, reports Bloomberg. Mercedes-Benz Vans unit, said on Thursday in a The next step in Mercedes’ plans is flexible Credit Agricole’s Italian division agreed to buy more than 95% of Cassa di Risparmio di Cesena, Cassa di Risparmio di Rimini and Cassa statement. drone delivery to individual vans, where the mini di Risparmio di San Miniato, according to a statement late on Friday. Through the purchase, the French bank will increase its Italian “To validate our concept at this early stage copters meet the vehicles at random spots, the customer base by 20%. Credit Agricole, led by chief executive off icer Philippe Brassac, in April started talks with the Bank of Italy and with customers and project partners will company said. the country’s deposit protection fund to buy the three local troubled lenders comprising about 250 branches overall. Credit Agricole’s help push forward the development of the “We want to get an idea on customer demand conditions included a “securitisation” of non-performing loans before its Italian unit takes over the Cesena, Rimini and San Miniato technology.” for drone deliveries, and find out which products saving banks. Burdened by bad loans, the three banks were the last regional lenders fighting for survival, after four other small banks The pilot programme, which started on last and segments work well for this,” said Peter were rescued by Unione di Banche Italiane and BPER Banca in similar deals and the government liquidated two failing Venetians banks Monday, is part of a €500mn ($589mn) eff ort Rohn, chief operating off icer of Siroop. earlier this year. A portfolio of 3bn euros of non-performing loans will be securitised with the help of the Atlante II fund or sold to private that Mercedes announced last year to speed “We also expect to get good insights on the investors and will not be part of the assets purchased by the French lender. The transaction will lower the common equity Tier 1 ratio of delivery times for online orders. The company, a practicalities involved for the retailer.” Crédit Agricole and the Crédit Agricole Group by about 10 basis points. Gulf Times Monday, October 2, 2017 15 BUSINESS

Trump ramps up Fed chair search with decision due within weeks

Bloomberg are both in the running for the post, the tasked with safeguarding US growth and Institution, where he is currently a fellow. fundbnaire Stanley Druckenmiller who running for Fed chair. The only Republi- Washington off icials said. stable prices and overseeing financial The Fed declined to comment on any of worked at Morgan Stanley before joining can currently on the Board of Governors, Conversations with additional candi- stability. the meetings. the White House of President George W Powell, 64, has a solid reputation among dates are already in the works as Trump News of Warsh’s White House visit, Others previously identified by adminis- Bush, has already drawn opposition from lawmakers from both parties and has ably Donald Trump in the next few weeks will aides try to give him a range of options, whether an inadvertent leak or a deliber- tration off icials as potential contenders for left-leaning activists, particularly for his led the Fed’s regulatory eff orts, albeit on make one of the most consequential said one of the off icials, who didn’t identify ate trial balloon to test market and politi- Fed chair include Stanford economist John pre-crisis cheerleading of Wall Street in- a temporary basis, since Daniel Tarullo decisions of his presidency with the choice those contenders. cal reaction, sent bank stocks higher and Taylor, former BB&T Corp CEO John Allison novations. retired in April. of a nominee to be the next chair of the “I’ve had four meetings for Fed chair- lifted Treasury yields. Investors weighed a and Columbia University economist Glenn “We would definitely come out against Critics of the Fed’s role in carrying out Federal Reserve, and the selection proc- man, and I’ll be making a decision over potential Fed pick who might aggressively Hubbard. him if he was the nominee,” said Jordan stricter post-crisis banking rules could ess is accelerating as he meets with top the next two or three weeks,” Trump promote the administration’s agenda to re- Yellen’s term as Fed chair term ends Haedtler, the campaign manager for hold his tenure on the board against contenders. told reporters on Friday before board- duce financial regulation and raise interest February 3, 2018, and time is get- FedUp, a grassroots group that has has him. The president and Treasury Secretary ing the presidential helicopter at the rates faster. ting tight to make a selection and get sought more diversity at the central bank. Before joining the Fed, Powell spent Steven Mnuchin sat down on Thursday White House as he travelled to his golf “In terms of policy, I think it is fair to it through Congress. The president Warsh is married to Jane Lauder, daugh- eight years at private equity firm Carlyle with former Fed governor Kevin Warsh club in Bedminster, New Jersey for the say that Warsh is less dovish than Yellen,” nominates the head of the central bank, ter of Trump friend Ronald Lauder and a Group. He also served as a senior off icial at and interviewed Fed Governor Jerome weekend. said Stephen Stanley, chief economist at subject to Senate confirmation. That global brand president at the cosmetic the US Treasury under President George Powell on Wednesday, three administra- The selection is one of the most impor- Amherst Pierpont Securities in New York. could make potential political opposition company founded by her grandmother, H W Bush. tion off icials said. He’s also met with tant facing Trump, who claims credit for an Warsh, 47, who served as Fed governor a factor as the White House considers Estee Lauder. Trump said in July that both Yellen and current Fed Chair Janet Yellen and White economy that’s reduced unemployment from 2006 until 2011, didn’t respond to a candidates. Powell had been regarded as a Cohn were being considered for the job, as House economic adviser Gary Cohn, who to the lowest level in 16 years. The Fed is request for comment through the Hoover Warsh, a close associate of hedge- long-shot candidate, but not out of the well as other candidates.

Lyft enlists Ford P&G faces an uphill fi ght against to help get self-driving cars Peltz after proxy fi rms back him on the road

Bloomberg Bloomberg New York San Francisco

rocter & Gamble Co is facing ord Motor Co and Lyft Inc have agreed to longer odds in its standoff with team up on developing and deploying au- PNelson Peltz, the billionaire Ftonomous vehicles, sealing the latest al- investor who is vying for a board seat liance intended to popularise self-driving cars. in one of the most contentious proxy The US automaker and ride-hailing serv- fi ghts in years. ice will share data to develop the systems and Peltz won the approval of promi- technology needed to design aff ordable driver- nent shareholder-advisory fi rm less automobiles, and eventually get them onto Institutional Shareholder Services Lyft’s network, they said in twin blogposts. Inc on Friday, following a similar Ford intends to take advantage of its new endorsement from Glass Lewis & Co partner’s customer base and traffi c-fl ow data the previous week. The fi rms’ sup- generated by a million daily rides, while Lyft port could give Peltz a crucial edge in benefi ts from the automaker’s production persuading P&G’s biggest investors heft and ongoing research. to vote him onto the board during its Automobile manufacturers and tech giants annual meeting on October 10. from Alphabet’s Waymo to Apple are pour- It now falls to P&G to convince ing billions into developing self-driving cars, shareholders that its board is do- pursuing a solution to growing urban grid- ing just fi ne without Peltz’s med- lock and vehicle deaths. Lyft and its larger dling. The consumer-products giant US rival, Uber Technologies, see autonomous has scheduled a webcast on Tuesday, vehicles as pivotal to their longer-term busi- when chief executive offi cer David ness prospects. The enormous fi nancial and Taylor, chief fi nancial offi cer Jon Moe- data resources needed to make robo-cars a ller and board member Meg Whitman reality have pushed them into a web of alli- will fi eld questions from investors. ances: Lyft itself has launched an open- de- “Change is not warranted when a velopment platform and its partners include highly engaged board is overseeing a General Motors Co, startup NuTonomy and plan that is working,” P&G said in a Jaguar Land Rover. statement on Friday. “We fi rmly be- “When ready, we’ll have self-driving cars lieve adding Nelson Peltz to the P&G operating alongside Lyft’s current community board would derail our progress.” of drivers to help accommodate times of sig- Peltz, a founding partner of Trian nifi cant consumer demand,” Sherif Marakby, Fund Management, launched his Ford’s vice-president of autonomous vehicles, proxy fi ght in July, saying that P&G said in a blogpost. He returned to the auto- had a “suff ocating bureaucracy” and maker in June after spending a year working on was performing worse than peers. self-driving vehicle research at Uber. He has argued that his presence on Ford chief executive offi cer Jim Hackett has the board could be the shake-up that The support of Institutional Shareholder Services could give Peltz a crucial edge in persuading P&G’s biggest investors to vote him onto the board during its formed a series of partnerships since taking the company needs. annual meeting on October 10. over the role in May. The automaker has tied P&G is the largest company by up with SUV maker Mahindra & Mahindra market value to face such a fi ght. But ditional diversity of thought and ex- beauty, grooming and health-care bury Schweppes and snack company packaged-goods sector because Ltd to boost its struggling India operations Peltz isn’t calling for a breakup of the perience,” ISS said. business; a fabric and home-care Mondelez International Inc. both rely on innovation, marketing and is exploring an electric-car joint venture business or suggesting that Taylor be The advisory fi rm also noted that division; and a unit focused on baby, Stephen Yacktman, a P&G inves- and branding, and on understanding with Anhui Zotye Automobile Co in China. ousted. And unlike with many previ- due to the size of Peltz’s holdings — feminine and family-care products. tor who runs Yacktman Asset Man- retailers and consumers. Hackett, 62, conducted a 100-day review of ous proxy battles, he’s just seeking his 1.5% stake accounts for about Each one would have regional lead- agement, has said that he will vote He also noted that none of the Ford’s business and is scheduled to lay out his one board seat. Still, the contest has a quarter of Trian’s assets under ers with full control over operations the fi rm’s shares in favour of electing current P&G directors had any ex- strategy to investors on October 3 in New York. grown increasingly bitter. Taylor, 59, management — it’s unlikely that he in their areas, instead of the bureau- Peltz. Yacktman’s stake is valued at perience in the consumer packaged The shares are down about 1.7% this year, trail- has argued that Peltz doesn’t un- would be “needlessly disruptive if cratic structure that Peltz claims is about $1.4bn. goods business either. ing peers GM and Fiat Chrysler Automobiles. derstand P&G’s business and hasn’t his actions could negatively impact in place now. In an interview before the ISS en- P&G board member Frank Blake, Apart from forging partnerships, Lyft is taken the steps needed to learn more P&G’s share price.” P&G has said that Peltz’s views on dorsement, Peltz reiterated that he’s former CEO of Home Depot, said that opening a self-driving vehicle development about the company. When Glass Lewis endorsed Peltz’s the company are “fl awed” and “out- only seeking one board seat. Peltz would be joining in the middle facility in Palo Alto, California, called “Level In throwing its support behind bid last week, it said the investor was dated” and that he would bring little “All I’m trying to do is engender of a turnaround that is already yield- 5,” a nod to the designation of fully autono- Peltz, ISS argued that the billion- a “credible, suitably experienced value as a director. It also said it had good discussion,” he said. ing results. “If this were at the very mous vehicles that don’t require human su- aire could help the company “look candidate.” The fi rm sees the decision examined several diff erent struc- Board member Patricia Woertz beginning and someone said, ‘I have a pervision. About 10% of its software engi- around the next corner and avoid to elect him as “low risk” because he tures, including one similar to the said Peltz’s experience as a director ton of ideas,’ that’s a diff erent situa- neers are working on the technology, Lyft has future missteps,” according to a 24- would be forced to work construc- one Peltz has suggested, and deter- and investor at companies includ- tion. We’re two years into this.” said. It’s hired Luc Vincent, a former senior page research note on Friday. tively with the rest of board. mined it would result in higher costs, ing HJ Heinz, former chocolate and Trian released a 93-page white director of engineering at Alphabet’s Google “P&G’s board is accountable for While it’s not guaranteed that lower effi ciency and reduced profi t. drinks giant Cadbury Schweppes paper earlier this month calling for who helped develop Google Street View, to several missteps over the past sev- shareholders will be swayed by ISS After several meetings with the and snackmaker Mondelez Interna- P&G to reorganise into three largely helm the eff ort. eral years,” the fi rm said in a report. or Glass Lewis, many institutional 75-year-old Peltz, Taylor said he tional aren’t relevant to the world autonomous units: a beauty, groom- Under the agreement outlined on Wednes- Those include “its handling of pre- investors rely on the fi rms’ advice was unconvinced the investor had P&G operates in. “We see food dif- ing and health-care business; a fab- day, Ford and Lyft will work on a platform that vious CEO successions, its oversight when they vote in proxy fi ghts. “genuine interest” in learning about ferently,” said Woertz, former CEO ric and home-care division; and one can be easily dispatch autonomous cars on of an M&A strategy that resulted in Peltz launched his campaign for a the company. of Archer-Daniels-Midland Co. “In focused on baby, feminine and fam- Lyft’s service, identify the most suitable cit- dozens of acquired brands subse- board seat after disclosing a roughly Few activist investors have had fact, we got out of the food business ily-care products. Each unit would ies for deployment and build infrastructure to quently being divested, and its fail- $3.5bn position in the Cincinnati- as big an infl uence on tired US several years ago as a result of seeing have regional leaders with full con- maintain a future fl eet. The ride-hailing gi- ure to prevent the company’s organ- based company. Trian then released consumer brands as Peltz, whose the diff erences.” trol over operations in their areas. ant’s network will become a testing ground isational structure from becoming a 93-page white paper this month previous campaigns targeted US Peltz’s response is that there are “They think that they’ve changed for systems and customer interfaces, though overly complex in the fi rst place.” calling for P&G to reorganise into ketchup maker HJ Heinz, former more similarities than not between it,” he said of the P&G bureaucracy. Ford emphasised that self-driving cars won’t The board “could benefi t from ad- three largely autonomous parts: A chocolate and beverage giant Cad- the food industry and the consumer Instead, “they’ve tweaked it a bit.” be deployed prematurely. Mattel gadget listens to babies, setting off privacy alarms

Bloomberg to eat this kind of food, the kid likes to language, the company said in a press machines is accelerating. Amazon, gird- “It appears that never before has a But Chester, with the Center for Washington listen to this kind of music, and we’ll have release. ing for competition from Apple Inc and device had the capability to so intimately Digital Democracy, said the law doesn’t this kind of information that we can share Aristotle was to be introduced at retail Google in the race to equip homes with look into the life of a child,” Senator Ed protect children once parents give with partners and advertisers.” in the summer with a recommended price smart devices, this week unveiled a slew Markey, a Massachusetts Democrat, and permission. Toymaker Mattel Inc has announced plans The toymaker announced Aristotle of $299, according to Mattel’s January of consumer gadgets including an Alexa- Representative Joe Barton, a Texas Repub- Mattel chief executive officer Margo to sell a nursery gadget that will listen to in January as a “connected kids room news release. The product didn’t turn up powered digital-home hub and a smaller lican, said in the letter. Georgiadis, hired from Alphabet Inc’s infants and watch over them, record their platform.” The device includes a speaker, in a search of Mattel’s shopping website and cheaper Echo speaker. “Consumers should know how this Google early this year, has laid out a sleep patterns, and even play a lullaby camera and lights. It’s powered by on Thursday and the company hasn’t Mattel is investing in internet-connect- product will work, and what measures vision for the 72-year-old company that should they awaken. processors from Qualcomm Inc, and it said when it will be available or if it’s been ed toys under a new leader recruited from Mattel will take to protect families’ privacy puts more emphasis on internet- con- Put another way: It eavesdrops on kids. uses programming from Microsoft Corp delayed. Google. and secure their data,” the lawmakers nected devices over traditional toys. Sceptics are asking if the device, similar to collect crib-side data and respond to a Alex Clark, a spokesman for Mattel, “Alexa and Echo have prepared us to wrote. Their questions included whether This mission has taken on new urgency to Amazon.com’s Echo with its Alexa voice baby’s needs. said in an email the company is “commit- say this is OK — to see something that’s Aristotle will always be on to record as interest appears to be waning in once- assistant, will violate children’s privacy Aristotle can be programmed to launch ted to ensuring every product we make actually quite shocking as OK,” Sherry children, and how Mattel will store and powerful brands such as Thomas and and deepen a trend of surrendering inti- into a lullaby, emit white noise, or turn meets or exceeds all applicable laws and Turkle, a professor at the Massachu- protect the information. American Girl. Shares have dropped by mate human connections to technology on a night light to soothe a waking baby regulations, including connected products setts Institute of Technology, said in an Mattel is “carefully reviewing” the letter, more than 40% this year. that talks and listens. back to sleep. The monitor sends data intended for children’s use.” interview. said Clark, the company spokesman. But electronics come with implications “The kid tech industry sees kids’ bed- on nap times and diaper changes to a Aristotle wasn’t designed to store or She called Aristotle’s lullaby capability The El Segundo, California-based toy- far beyond selling wooden train sets or room as an economic bonanza,” said Jeff corresponding smartphone app and, with record audio or video, Clark said. No third “exactly the wrong thing for a computer maker in its announcement of the product dress-up dolls. Chester, executive director of the Center permission, uploads it to the cloud. parties will have access to any personally- to be doing,” because the machine can’t said it paid “special attention” to federal “A young child’s bedroom should not for Digital Democracy, a Washington- The device can help purchase diapers, identifiable information, and any data provide the comfort a human would. law that requires websites and apps tar- be a place for corporate surveillance and based policy group that advocates for reinforce good manners in kids (by shared is entirely anonymous and fully In Congress, two lawmakers in a letter geted at children to gain parental consent data-gathering,” said Josh Golin, executive privacy protections. “They can get all requiring the word “please” in voice com- encrypted, he said. Thursday asked Mattel for details on how to collect and use children’s personal director of the Campaign for a Commer- kinds of profile information — the kid likes mands) and even help kids learn a foreign The trend towards talking, listening Aristotle will gather and store information. information. cial-Free Childhood policy group. Monday, October 2, 2017 GULF TIMES BUSINESS

BANKING ON KNOWLEDGE Will this IMF-World Bank meeting provide roadmap to resolve key global issues?

By Dr R Seetharaman The future of work is also an interest- Younger generations care much more ing area. The new economic forum will about the quality, sustainability and focus on the future of work from three provenance of the food they eat than their The annual meeting of IMF and World areas. First, technological innovations that parents do. And many are drawn to tech- Bank Group is going to be held this will bring about changes in our work- nologies that have the potential to break month in Washington DC. Some of my places and labour markets. Second, the new ground in food and agriculture. areas of interest which are expected to socioeconomic impact of technological The ‘economic and financial issues be discussed at this meeting include the innovation. Lastly, the skills and education attention. The global financial crisis has been foolproof. Should we expect large related to the impact of climate change’ future of globalisation, the future of work, necessary to adapt to change and how to placed the concept of systemic risk at the emerging market economies to take the will also be discussed. The discussion will rise in sovereign debt vulnerabilities, sys- design policies that respond to change centre stage for the guardians of financial lead in the trade liberalisation agenda focus on the key economic and financial temic risk and macro prudential testing while ensuring sustainable and inclusive stability. While eff orts by central banks going forward? issues related to the impact of climate in banking, trade development linkages, prosperity. and regulatory authorities since the crisis In relation to food security, a question change, including systemic financial harvesting for tomorrow and economic As the global economic recovery is have led to groundbreaking advances is coming up as to who will grow tomor- stability risks from climate change, regula- and financial issues related to the impact still modest, the rising vulnerabilities on in identification and measurement of row’s food? Global food demand is pro- tory perspectives on green financing with of climate change. sovereign debt in developing countries systemic risk, less explored is the use of jected to skyrocket in the future, creating industry perspectives, and measuring the The future of globalisation is also will also be discussed. The recent rise in these measurements in implementing vast job opportunities in food production, social cost of carbon. expected to be discussed. Globalisation is sovereign debt vulnerabilities in many policy. transformation and marketing. As various topics are going to be widely perceived to be at a crossroad. Its developing countries merits attention, The global trade has witnessed With low access to land, finance and discussed at this annual meeting of IMF long-acknowledged benefits to economic by a string of international financial crises especially in the context of a new creditor challenging times, and discussions on knowledge on the one hand, and the pull and World Bank Group, it needs to be growth, poverty reduction, and consum- that have heightened unemployment and landscape and rising shares of domestic, macro trade development linkages of urban lifestyles on the other, farming is seen whether it can provide a roadmap to ers’ access to varied goods at lower public debt in many countries in recent non-concessional and collateralised will also be an interesting area. Lower indeed a hard sell for many young people. address the key challenges faced by the prices, have given way to growing public years, as well as by concerns about loss debts. trade barriers and greater openness to Yet, other trends give reason for opti- global community. scepticism out of concerns of job losses, of national sovereignty and homeland se- On the financial services sector, the trade have been historically associated mism: in surveys, younger generations de-industrialisation, and inequality. curity, all of which help fuel anti-foreigner systemic risk and macro prudential with higher income growth in many express a thirst for innovation, private „ Dr R Seetharaman is Group CEO of Such a scepticism has been aggravated sentiments. stress testing is an area which received countries, but this relationship has not entrepreneurship and meaningful work. Doha Bank. Qatar’s IPI Mideast households rises 0.8% in to witness ‘squeeze’ July: MDPS atar’s Industrial Pro- to the increase in production of duction Index (IPI) seven groups – “Manufactur- Qstood at 104.1 points in ing of Beverages” by 16.5%, July, up 0.8% on the previous “Manufacturing of basic met- month, the Ministry of Devel- als” by 12.6%, “Manufactur- opment Planning & Statistics ing of food products” by 9.8%, has said. “Manufacturing of cement and on incomes: Study However, IPI in July was other non-metallic mineral 2.4% lower than in the same products” by 6.1%, “Manu- By Santhosh V Perumal period in 2016. facturing of refi ned petroleum Business Reporter The mining sector index in products” by 5.3%, “Manufac- July showed no change com- turing of chemicals and chemi- pared to the previous month, cal products” by 3.4% and ouseholds in the Middle as a result of the “stability” in “Manufacturing of rubber and East are set to witness a the quantities of crude oil and plastic products” by 2.8%. H“squeeze” on their in- natural gas produced, and an In terms of electricity index, comes on higher infl ation and increase in “other mining and an increase of 14.1% in its pro- energy costs, while the region’s quarrying” by 3.1%. duction in July (when compared overall economic growth is ex- When compared to the cor- to the previous month) was pected to be 2.4% next year, ris- responding month of the previ- seen. The annual increase (be- ing to 4% in 2019, according to a ous year (July 2016) mining IPI tween July 2016 and July-2017), study. declined by 3.4%. was 3.7%. “One of the key themes for A pick-up of 4.5% was re- When compared to the pre- Middle Eastern economies as corded in the manufacturing vious month, a rise of 1.5% was we move into the fi nal months of sector index in July compared noted in the water index in July. 2017 and into 2018 is the ongoing with the previous month, However, it was 6.9% lower squeeze on household incomes,” MDPS said. This, it said was due than the same period last year. said Economic Insight: Middle East Q3 2017, produced by Ox- ford Economics, ICAEW’s part- ner and economic forecaster. Assuming around 50% of Qatar’s nominal GDP the consumer basket is covered initially, with exemptions being gradually phased out thereafter, grows 8.5% y-o-y in it said, on this basis, it expects value added tax (proposed to be 2nd quarter: MDPS in place in the Gulf Cooperation Council) to increase the cost of living in impacted economies by Qatar’s real GDP grew 0.6% prices) in the second quarter, around 2.5% in 2018, and 0.5% year-on-year in the second up 15.6% on Q2, 2016 in each year from 2019-2022. quarter, data released by the (QR40.29bn). Households in many countries Ministry of Development However, compared to the are also feeling the pinch from Planning and Statistics previous quarter (Q1, 2017), higher energy costs – fuel prices (MDPS) indicate. the sector’s GVA dropped were raised by 6% in the UAE ear- Nominal GDP at grew 8.5% 6.8%. lier this year, Egypt’s government in the second quarter doubled the price of cooking gas, Electric lights illuminate shoppers in Avenues shopping mall in Kuwait City. Assuming around 50% of the consumer basket is covered initially, compared with Q2 in 2016, The quarterly real and although fuel price hikes in with exemptions being gradually phased out thereafter, the study said, on this basis, it expects value added tax to increase the cost of living in MDPS said. GDP was estimated at Saudi Arabia look likely to be de- impacted economies in the Middle East by around 2.5% in 2018, and 0.5% in each year from 2019-2022. Nominal GDP in the second QR198.6bn, compared layed for a few months, these are quarter was estimated at with QR197.47bn in still expected early in 2018. the report said there has been a ply in non-signatory economies, their 2010-2014 average,” ICAEW sustainability, and also support QR146.26bn, it said. In Q2, Q2, 2016 “Together with the impact of short-term improvement, but in particular Libya, Nigeria and said, adding in this case govern- the development of vibrant pri- 2016, the nominal GDP had a weaker dollar on import costs, longer-term the picture is lit- the US, has meant the broad bal- ments would come under fur- vate sectors. Furthermore, by totalled QR134.81bn. The GVA estimate of these pressures will drive con- tle changed as the average prices ance of supply and demand has ther pressure to prioritise public boosting investor and market The quarterly real GDP was non-mining and quarrying sumer price infl ation at the GCC (benchmarked by Brent crude), changed relatively little, it said. spending in growth enhancing confi dence, they can also start estimated at QR198.6bn, activities, at the current level from just 1.2% in 2017 to rose from $47 in June to $49 in “It remains possible that a areas, fi nd new revenue sources, a virtuous cycle of stronger in- compared with QR197.47bn prices, was put at QR99.68bn 4.7% in 2018, and 3.5% in 2019,” July and onwards to $52 in August, second extension of Opec’s (Or- or allow public debt to accelerate. vestments, including foreign in Q2, 2016. in Q2, 2017, up 5.5% on Q2, the report said, forecasting con- and around $56 in September. ganisation of Petroleum Export- “The GCC countries need to direct investment, and output The Gross Value Added 2016 (QR94.53bn). sumer spending growth of 2.5% More generally, although com- ing Countries) supply cuts will shift focus towards deeper, mul- growth in the near term,” Tom (GVA) estimate of mining However, compared to the in 2018 and 2019 – compared to pliance with the “Opec-plus” be required to try and keep prices ti-dimensional fi scal policy and Rogers, ICAEW Economic Ad- and quarrying was put previous quarter (Q1, 2017) an average of 4.2% per annum deal agreed almost a year ago has within a $45-$50 range for the institutional reforms. These will visor and Associate Director of at QR46.58bn (at current this shows a drop of 1.3%. from 2010-16. On the oil front, been good, the growth in sup- coming few years – less than half help to secure long-term fi scal Oxford Economics, said.

Visiting Uzbek delegation impressed with Oryx GTL’s Ras Laff an plant

ryx GTL has hosted a knowledge, experience, safety, delegation from Uz- and plant condition. Obekistan GTL visiting “The visit gave me an oppor- the company’s plant in Ras Laf- tunity to establish useful busi- fan Industrial City as part of ness contacts, as well as to get stakeholder relations and shar- a lot of new information about ing knowledge and experience GTL technology and technical to improve the global GTL in- solutions in this process. Eve- dustry. rything was organised at the Uzbekistan GTL general di- highest level. We have plans to rector Fakhritdin Abdurasu- extend our cooperation which lov led the visiting delegation can give benefi t to both Oryx alongside other guests and GTL and Uzbekistan GTL, and representatives from Sasol. The hope that the level of relation- delegation also toured the plant ship will grow between the two to further understand the GTL companies.” process. Oryx GTL chief operations He said: “I was delighted with offi cer Jacques du Toit briefed the management profession- the visitors on the process of alism of Oryx GTL leadership. transforming natural gas to fi - Being one of the fi rst large com- nal GTL products, in addition to mercial GTL plants in the world, discussing the best ways of co- Oryx GTL left an excellent operating to benefi t all sides and impression by means of staff improving GTL technology. The Uzbekistan GTL delegation at the Oryx GTL plant in Ras Laff an Industrial City.