Business 13

FRIDAY 11 SEPTEMBER 2020

Chinese tech giant unveils HarmonyOS to replace HarmonyOS will be used in in next year. Despite the Washington restrictions on Huawei, the company recorded 105 million unit shipments in the first half of 2020.

Richard Yu Chengdong Huawei CE0 Business | 14 QSE 9,763.78 +0.53% (+51.05) FTSE 100 6,001.01 -11.83 (0.20%) DOW 27,965.89 +21.23 (0.076%) BRENT $37.00 (-1.05)

ECB keeps stimulus policies on hold Oil benchmark Brent

AP - FRANKFURT holds above $40/b The European Central Bank (ECB) left its REUTERS - LONDON Brent crude futures key stimulus settings unchanged with The bank’s governing dropped 9 cents to almost a trillion euros in stimulus still in council made the Oil prices were broadly stable $40.70 per barrel. US the pipeline to bolster the eurozone’s yesterday after losses earlier in West Texas Intermediate rebound from the severe coronavirus decision yesterday to the session, but hovered near (WTI) crude futures were shutdowns. keep benchmark interest three-month lows after data The pause may only be a prelude to showed US crude stockpiles down 14 cents to $37.91 even more stimulus later this year as the rates, the size of its rose last week and the US a barrel as of 1337 GMT. ECB and global counterparts like the US bond-buying stimulus Energy Information Adminis- Federal Reserve make clear their determi- tration (EIA) lowered its nation to maintain their massive support programmes and its demand outlook. leading commodity traders are to the economy to limit the damage from outlook unchanged. Brent crude futures booking tankers to store crude the virus outbreak. dropped 9 cents to $40.70 per oil and diesel. The rising stock- The bank’s governing council made the barrel. US West Texas Interme- piles come ahead of a meeting decision yesterday to keep benchmark diate (WTI) crude futures were on September 17 of the market interest rates, the size of its bond-buying monthly bond purchases from a stimulus the virus under control. And that has raised down 14 cents to $37.91 a barrel monitoring panel of the Organ- stimulus programmes and its outlook effort launched before the outbreak. cause for worry. After some initial success as of 1337 GMT. Both contracts ization of the Petroleum unchanged. Those measures come on top of cheap, in reversing large outbreaks in Spain, Italy hit their lowest since mid-June Exporting Countries (Opec) and Markets were waiting to hear ECB head long-term credit for banks to help them and France, and after Germany’s success this week. allies including Russia, a group Christine Lagarde’s (pictured) outlook on lend to businesses, and a negative rate in containing a disastrous first wave, cases The EIA has already cut its known as Opec+. possible threats to the economic rebound penalty of 0.5 percent on deposits left over- have started to rise again as people have 2020 world oil demand growth “Despite the recent slide in from a stronger euro, which can hurt night by commercial banks as an incentive returned from summer vacations and as forecast by 210,000 barrels per oil prices, we think that the exporters, and from weak inflation, which for them to lend the money rather than let some restrictions have been eased. day to 8.32 million bpd. Opec+ leadership will continue indicates weak demand. it pile up at the central bank. European governments have made big Industry data from the to direct its efforts towards Many analyst think that the ECB will add The ECB stimulus effort comes as the economic efforts at the national level, American Petroleum Institute securing better compliance to its pandemic emergency bond purchase Fed has shifted its 2 percent interest rate paying companies to keep workers on and (API) showed on Wednesday rather than pushing for deeper stimulus at its December meeting, when it target to an average, meaning that it could extending loans. That has kept unem- that US crude stockpiles unex- cuts at this stage,” RBC analysts will have new inflation and growth maintain stimulus for a longer period by ployment in the eurozone down at 7.9 pectedly rose by 3 million said. But some analysts, forecasts. letting inflation run higher than the target. percent, thought the rate is likely to rise barrels in the week to Sep- however, see a recovery in oil The economy of the 19 euro currency Both central banks have struggled to raise after those programs expire. tember 4 with coronavirus prices in the coming months. countries plunged 11.8 percent in the April- inflation to their goals. The ECB saw the At the EU level, governments have cases rising in several states. Norbert Rücker, head of eco- June quarter. Activity is picking up quickly inflation rate fall below zero in August with agreed to fund a €750bn recovery fund sup- Regarding ’s oil nomics at Swiss bank Julius but isn’t expected to regain pre-virus levels an annual figure of 0.2 percent, far from ported by common borrowing. The money imports, which have supported Baer, said the recent fall in US before 2022. the bank’s goal of below but close to 2 would be spent from 2021 on projects aimed oil in recent months, Bank ANZ technology equities from The bank is pumping €1.35 trillion ($1.6 percent. at supporting growth, digitalization and said they were likely to level off record highs had dragged down trillion) in newly printed money into the ECB officials have stressed that while transforming the economy to reduce emis- as independent refineries reach oil, but “we see prices moving economy through purchases of government they are taking action to help the economy, sions of carbon dioxide, the main greenhouse their maximum quotas. beyond $45 per barrel later this and corporate bonds, on top of €20bn in the key factor in the recovery will be getting gas blamed by scientists for climate change. In a further bearish sign, year”. IMF set to help Lebanon once Citigroup names Jane Fraser as first woman CEO new government in place AFP - NEW YORK coronavirus. Other women have the economy and it doesn’t become CEOs of big financial seem likely to loosen until vac- AFP - WASHINGTON Rice welcomed Lebanon Citigroup named Jane Fraser companies or in related indus- cines are widely available,” Finance Minister Ghazi Wazni’s (pictured) as its next chief exec- tries, such as Abigail Johnson at Corbat said on a conference call The IMF is ready to “redouble announcement on Wednesday utive yesterday, tapping a Fidelity Investments and Julie with analysts. its efforts” to help Lebanon that he had launched an audit woman to lead a giant Wall Sweet at Accenture. But in The Scottish-born Fraser once a new government is in of the central bank’s finances, Street bank for the first time. taking the helm of the fourth- joined Citi in 2004 after earlier place as the country reels fol- which the fund had called for. She will take over the top biggest US bank by assets, roles at Goldman Sachs and lowing a massive explosion at Rice said the move was “an job in February, replacing Fraser joins a group of Wall McKinsey & Company. She has Beirut’s port, a fund official said important part of assessing past Michael Corbat who will retire. Street CEOs that until now has spoken openly about being a yesterday. losses that are part of the Fraser, who has served as been exclusively led by white working mother in finance, The country is facing a central bank’s balance sheet.” president and CEO of global men. recounting in 2016 how she severe economic crisis after a “The audit will also help assess consumer banking since 2019, Her appointment to the top worked part-time at neglected warehouse full of the impact of the central bank’s will join the board of directors job had been telegraphed from McKinsey. fertilizer ignited in a cata- financing of government oper- immediately, the bank said. She her prior promotion in October Having children clysmic blast that devastated ations, and the central bank’s has held prior roles for Citi in 2019 to president and head of “humanized me,” Fraser said in the capitol on August 4. financial engineering on its Latin America and in global consumer banking. “We went from returning the 2016 appearance at the “We stand ready to engage own.” investment banking. Senior women at JPMorgan hardly any capital to returning Americas Society. “There is with the new government,” IMF Lebanon’s worst economic “I am honoured by the Chase are also in line to poten- nearly $80bn in capital to our nothing like having children to spokesman Gerry Rice told crunch since the 1975-1990 war Board’s decision and grateful to tially take the top job to succeed shareholders over the last six help you understand where reporters. “After its formation has seen the local currency Mike for his leadership and Jamie Dimon, who is expected years,” he said. your priorities are.” Fraser also is completed... we’re ready to plummet against the US dollar support,” Fraser said in a press to retire in the coming years. The improvement coincided recounted her sometimes unor- redouble our efforts to help and poverty double to more release. Corporate America is also with a post-2008 US economic thodox career moves, such as Lebanon and the people of than half of the population. “Our balance sheet is strong under scrutiny over the paltry expansion that ended abruptly exiting as head of the private Lebanon overcome the social The government has and our commitment to serving number of Black leaders in the with the coronavirus bank in London in 2013 to and economic crisis.” blamed central bank governor our clients and communities is wake of massive racial justice outbreak. oversee a turnaround of the The Washington-based Riad Salameh for the crisis, even stronger. I will do every- protests this year. In the most recent quarter, mortgage business from St. crisis lender is providing tech- though the latter has rejected thing I can to make all our After stumbling badly Citigroup added $5.6bn in Louis, Missouri in the midwest nical assistance as the country all charges. stakeholders proud of our firm during the subprime mortgage reserves for bad loans, a factor of the United States. struggles to recover “following The country for the first as we continue to build a better crisis, Citigroup recovered in in a 73 percent drop in profits “Everyone thought I was that terrible event at the port,” time defaulted on its sovereign bank and improve our returns.” the ensuing decade after the to $1.3bn. Large banks are also completely nuts,” she said. “I Rice said. debt in March before launching The move comes as Citi pivots 2008 financial crisis. staring at a lengthy period of knew I would grow. I knew I The tragedy devastated into talks with the IMF towards to a more challenging operating From 2012 to 2019, the low interest rates, putting a would a learn a completely dif- entire districts of Beirut and left unlocking billions of dollars in environment as large banks set banking giant saw net income damper on another source of ferent skill set.” Shares of Citi- at least 190 people dead and aid, but the negotiations have aside bns of dollars to prepare rise from $7bn to $20bn, Corbat profits. group were flat at $51.41 in late- more than 6,500 injured. stalled. for bad loans due to the said in the press release. “The pandemic has a grip on morning trading. US jobless claims flattening; labour market recovery showing signs of fatigue

REUTERS - WASHINGTON August and an increase in per- Oxford Economics in New York. given the economic shock from government-funded pandemic Donald Trump extended it manent job losses. “Failure on the part of policy- the coronavirus crisis. unemployment assistance last through an executive order, it The number of Americans filing The ebb in momentum makers to enact another fiscal Economists polled by week. was cut to $300 and a few states new claims for unemployment comes as government financial relief package poses significant Reuters had forecast 846,000 The PUA is for the self- are offering the supplement. benefits hovered at high levels aid to businesses and the unem- downside risks to the economy applications in the latest week. employed, gig workers and Economists expect funding for last week, suggesting the labour ployed has virtually dried up, and labour market.” Initial With changes to seasonal others who do not qualify for the supplement will be market recovery from the and talks for another package claims for state unemployment factors out of the way, econo- the regular state unemployment exhausted this month. COVID-19 pandemic was were going nowhere. At least benefits were unchanged at a mists expect claims, which have programs. Altogether, 1.7 million A loan programme for busi- stalling. 29.6 million people were on seasonally adjusted 884,000 for declined from a record 6.867 people filed claims last week. nesses lapsed last month and The weekly jobless claims unemployment benefits in the week ended September 5. million at the end of March, to Government money was money to help airlines with report from the Labor August. Claims dropped from about 1 drift around current levels for credited for the sharp rebound payrolls and protect jobs will Department yesterday, the most “Layoffs remain widespread million the prior week after the a while as the pandemic lingers. in economic activity, starting run out this month. Airlines, timely data on the economy’s and the labor market remains government changed the meth- Unadjusted initial claims with record retail sales growth including United Airlines and health, followed news last in a fragile place at a critical odology it used to address sea- increased 20,140 to 857,148 last in May. A $600 weekly unem- American Airlines have Friday of a further slowdown juncture,” said Nancy Vanden sonal fluctuations in the data, week. A total 838,916 applica- ployment supplement expired announced furloughs and job in employment growth in Houten, lead US economist at which had become less reliable tions were received for the in July. Though President cuts. 14 BUSINESS FRIDAY 11 SEPTEMBER 2020

Reliance Cuba plans first official peso devaluation approaches since 1959 revolution, sources say digital unit

REUTERS — HAVANA backers to

Communist-run Cuba will soon invest in its devalue the peso’s one-to-one exchange rate with the U.S. The peso will be kept retail arm dollar for the first time since the and the convertible 1959 revolution, according to REUTERS — NEW DELHI three sources who requested peso, which is fixed anonymity due to the sensitivity on par with the dollar India’s Reliance Industries Ltd of the subject. has approached investors in its As part of the reforms, due for state business digital business about poten- before the end of this year, but exchanged with tially buying stakes in its retail authorities will also unify the public at 24 arm, two sources with direct Cuba’s two domestic currencies, knowledge of the matter said according to two Cuban sources pesos to buy and 25 yesterday. and a foreign businessman, all pesos to sell, will The oil-to-telecoms con- with some knowledge of the glomerate is looking to attract plan. be eliminated, the more investors to Reliance The peso will be kept and sources said. Retail as the business expands the convertible peso, which is rapidly online to take on the fixed on par with the dollar for likes of Walmart Inc’s Flipkart state business but exchanged The Cuban economy is and Amazon.com Inc’s Indian with the public at 24 pesos to largely owned and run by the arm. buy and 25 pesos to sell, will be state, and exchange rates are set Earlier this year, Reliance, eliminated, the sources said. by the government. controlled by Asia’s richest man Cuba’s government has said The measures are part of a A farmer holds a wad of Cuban money at a vegetable stall at a market in central Cuba in this file photo. Mukesh Ambani, sold nearly 33 it will respect the peso’s current package of reforms aimed at percent of its Jio Platforms rate with the public for a time fighting an economic crisis munist Party a decade ago. Experts forecast Cuba’s eco- The government began digital business, netting more to allow residents to change caused by tough US sanctions According to the three nomic activity will drop by allowing the dollar to circulate than $20bn from companies their convertible pesos for pesos under President Donald Trump sources, there will be a signif- nearly 10 percent this year, after electronically with a bank card including Facebook, Alphabet’s and do so automatically for and exacerbated by the coro- icant increase in state wages, stagnating in 2019. Government a year ago and is opening dollar Google, KKR & Co and Silver convertible peso bank accounts. navirus pandemic and the pensions and prices due to the officials have admitted the lack stores offering everything from Lake Partners. “The most important bureaucratic inefficiency of the devaluation of the peso by as of a convertible currency has used cars and domestic appli- Mumbai-based Reliance measure is going to be changing island’s Soviet-style economy. much as 95 percent, or to forced postponement of debt ances to food and hygiene has approached some investors the official exchange rate used Shortages of basic goods around 20 pesos to the dollar. payments and drastic cuts in products. The sources said they from that deal to take stakes in by the state companies,” Omar have worsened this year, with Everleny said the devalu- fuel, food and other vital expected the dollar stores to the retail business, although “it Everleny, one of Cuba’s best- long lines a common sight at ation meant companies would imports. increase at least in the short is understood not all will par- known economists, told many stores around the have much higher costs and Economists have long term to provide stability and ticipate”, one of the sources Reuters. country. The closure of the prices would increase, requiring argued that the one-to-one capture greenbacks to import told Reuters, asking not to be “There are several pro- tourist sector has left many increased wages and official exchange rate - as well goods. named as talks are private. posals. It will never be one on Cubans without work, although pensions. as the different rate of the con- Many Cubans receive hard The sources did not specif- one... It is between 10 and up,” flights from Canada resumed Economy and Planning vertible peso and various currency from abroad and from ically name which companies he said. last week. The government Minister Alejandro Gil said in exceptions by sector - have servicing the tourism industry. Reliance had approached. The peso’s value versus the hinted in July it would adopt the July that reforms were needed stymied exports and “The monetary reform is Two leading sovereign Canadian dollar, euro and other monetary reforms and other to stimulate exports and reduce encouraged imports because a very close. This is the moment,” investment funds from the Gulf convertible currencies also is measures such as loosening imports as the local currency is dollar earned is accounted for said Everleny, who supports the countries, who are backers of expected to be adjusted centralized planning and not exchangeable on the inter- as a peso and vice versa, making measures even though he Jio Platforms - are also downward based on interna- restrictions on small businesses, national market to purchase it difficult to decipher if a warned they could be traumatic weighing a potential tional market rates. first called for by the Com- goods and pay debt. company is profitable. for some. investment, a third source said. India considers $23bn package to lure global manufacturers

BLOOMBERG Vietnam continues to be the most favoured destination, India is planning to offer followed by Cambodia, incentives worth 1.68 trillion Myanmar, Bangladesh and rupees ($23bn) to attract com- About two dozen Thailand, according to a recent panies to set up manufacturing survey by Standard Chartered in the South Asian nation, companies including Plc. people with knowledge of the Samsung Electronics The government is also matter said. Co, Hon Hai Precision planning to introduce a phased Prime Minister Narendra manufacturing programme to Modi’s government will offer Industry Co, known other sectors for allowing com- Huawei CEO Richard Yu Chengdong, ntroduced HarmonyOS at the company's developer conference. i production-linked incentives as Foxconn and panies to gradually increase to automobile manufacturers, Wistron Corp local value-addition. solar panel makers, and spe- The programme, currently cialty steel to consumer pledged $1.5bn of in vogue for components and Chinese tech giant Huawei unveils appliance companies, investments to set accessories used for mobile according to documents phones, is proposed to be reviewed by Bloomberg News. up mobile-phone extended for furniture, plastics, HarmonyOS to replace Google Textile units, food processing factories in the toys and low-value consumer plants and specialized pharma durables. Most of these items ANATOLIA — ANKARA country. on Huawei takes effect. tabloid. product makers are also being are currently imported from Last month, the US “HarmonyOS will be used in considered for the plan. China. Chinese technology giant Department of Commerce smartphones in next year,” Yu The incentive programme, their incremental sales over The details of both the pro- Huawei yesterday unveiled its issued updates to a list of rules said. He said that despite the being spearheaded by the the next five years. grammes are being worked out latest version of self-developed designed to restrict Huawei’s Washington restrictions on country’s policy planning New Delhi has been and would be put up for the Harmony access to US-based technology Huawei, the company recorded body, uses the template of a working on attracting invest- approval of the federal Cabinet (HarmonyOS) that is seen as an last month. The new rule would 105 million smartphone unit scheme implemented earlier ments to revive an economy soon, they said. alternative for Google’s prevent Huawei from acquiring shipments in the first half of this year to draw businesses that posted its worst slump A spokesperson for Niti Android, the country’s state-run chips developed or produced 2020. away from China. About two among major economies last Aayog, the government’s policy media said. with US technology and “Despite the US ban, Huawei dozen companies including quarter, when it contracted think tank, did not answer a The latest version was software from September 15. recorded 105 million smart- Samsung Electronics Co, Hon 23.9 percent. call made during business unveiled by Richard Yu The latest development in phone unit shipments in the first Hai Precision Industry Co, Corporate taxes are already hours. Chengdong, the CEO of Hua- HarmonyOS, EMUI 11 and its half of 2020, with a total known as Foxconn and among the lowest in Asia, while India imported goods wei’s consumer business at the own ecosystem Huawei Mobile revenue of 255.8 billion yuan Wistron Corp pledged $1.5bn insolvency rules were over- worth $65bn from China in the company’s annual developers Services (HMS) Core 5.0 will ($37.4bn),” the Global Times of investments to set up hauled to improve the ease of year ended March 31, while it conference in the southern enable its products to seam- quoted Richard Yu Chengdong mobile-phone factories in the doing business. But those have exports to the neighbouring Chinese city of , lessly connect to others, which as saying. The Chinese giant cur- country, according to the gov- done little to make it the first nation stood at $17bn, leaving according to the Global Times is considered the Chinese tech rently has 1.8 million developers ernment, after authorities choice for businesses looking a trade deficit of $48bn, tabloid. giant’s direct response to the and 490 million active users on offered to pay them an amount to diversify supply chains away according to latest government This came less than a week expanded ban from the Trump its ecosystem, making it the third equivalent to 4-6 percent of from China. data. before the US latest chipset ban administration, according to the largest ecosystem. Is a chaotic Brexit looming after latest spat between Britain and EU? REUTERS — BRUSSELS/LONDON Britain’s post-Brexit transition through a Joint Committee over implementing the divorce go into “tunnel” talks - more period ending on December 31. headed by European Com- treaty. The EU says applying Brit- intense and secretive negotia- The risk of a “no-deal” Brexit has Here is a possible schedule mission Vice-President Maros ain’s Withdrawal Agreement is a tions until mid-October. increased since Britain presented of potential next steps. Sefcovic (pictured) and senior separate track from future part- That would be unlikely, new legislation that would By September 14, 2020, The British minister Michael Gove. nership negotiations, though con- however, if rancour over Brit- undercut its divorce treaty with Internal Market Bill must pass For trade talks, the EU needs troversy around putting the ain’s Internal Market Bill over- the European Union, angering through both houses of British clarity before the next negoti- divorce deal into practice weighs shadows trade talks. the bloc and undermining trade parliament before becoming law. ating round on Britain’s state aid on trade talks. Prime Minister Boris Johnson talks. The legislation will be plans. Otherwise, it says it will For now, the EU wants to has said he wants a deal with the The two sides were holding debated in principle in the lower be unable to agree with London keep on talking to London to try EU by Octobver15, or Britain will emergency talks yesterday. If house on Monday (September on provisions on corporate sub- to salvage the new deal and leave trade talks and focus on they fail to provide enough 14), and then in detail over four sidies to guarantee fair market ensure the divorce agreement is contingency plans for a no-deal assurances that London will stick further days. Lawmakers can competition. honoured. Disagreements over economic split from the EU. to its legal commitments, the bloc propose and vote on changes, More negotiations on a new fisheries, level playing field guar- EU leaders are due to meet would take legal action against testing Johnson’s authority and relationship between the EU and antees of fair competition - in Brussels on October 15-16. If Britain. The EU hopes Britain’s the strength of his 80-seat Britain are due in Brussels in the including on state aid - and over a deal is not in the making by Internal Market Bill put forward majority. A bigger test is expected week of September 28-October ways to solve future disputes then, the summit would be likely on Wednesday will be altered. in the upper chamber, where 2. Keen to avoid being assigned have been the main stumbling to underline the need for contin- Otherwise, both sides are likely Johnson’s Conservative Party has Eyes are also on what blame if talks break down, the blocks in trade talks. gency preparations by the EU, to step up contingency planning no majority. This stage of debate progress on defusing the row can EU has said it will not walk away If there is tentative progress highlighting the risk of a for an abrupt split at the end of has not been scheduled yet. be made in coming weeks from the table despite the spat on these issues, the sides could ‘no-deal’.