BAD LOANS | Page 2 UK WARNING | Page 15 Turkey said ‘Economy to to plan help shrink sans for lenders Brexit deal’

Tuesday, September 18, 2018 Moharram 8, 1440 AH FITCH SOLUTIONS REPORT: Page 16 GCC set to enjoy an GULF TIMES uptick in economic activity in 2018, BUSINESS driven by oil prices

Qatari Diar off icials among others mark the occasion of the completion of the first phase of the Sea Pearl Atakoy project in Istanbul. Right: A view of the Sea Pearl Atakoy in Istanbul. Qatari Diar completes 1st phase of Sea Pearl Atakoy in Turkey

QNA four residential towers, a fi ve-star the implementation of this unique The project will have direct access which overlooks the seafront, has a meanings of sophistication, luxury Doha hotel, landscaped gardens and retail project, pointing out that the work is to the Atakoy coastline, and more continuous facade for each unit. and innovation, providing customers units. continuing to fi nish the second phase, than 100,000 sq m of green space with Residents can take advantage of with a life of luxury and living com- Qatari Diar CEO, Eng Abdullah and that the project represents a real unique landscapes and pine trees. the marina and shopping malls in fort, making it an ideal destination for atari Diar Real Estate Com- bin Hamad al-Attiyah expressed the addition to the real estate sector of The project is characterised by the project, especially as it enjoys a both tourists and investors. pany has announced the com- company’s pride in its project, “Sea Istanbul. beautiful natural designs and green central location close to a number of Turkish developer Kuzu Group is Qpletion of the fi rst phase of its Pearl Atakoy” in Istanbul, which re- Qatari Diar is building a 128,000 sq spaces rich in plants and fl owers in- hotels and shopping malls, schools developing the project using high- project, Sea Pearl Atakoy, in Istanbul, fl ects the deep relationship between m mixed-use project at Sea Pearl Ata- spired by the ancient Ottoman pal- and hospitals, and a five-minute quality materials, including a founda- noting that all buyers will be given Qatar and Turkey, adding that project koy, which overlooks the banks of the aces. drive from the Ataturk International tion system consisting of earthquake their residential units and full serv- represents the strategic partnership Marmara Sea. The green areas and gardens cover a Airport and Marina Atakoy. It means resistant layers, a central heating sys- ices will be completed at this stage, between Qatari Diar and the Turk- It consists of eight residential tow- large area of the project’s land. access to residential units by sea as tem, high-equipped interior kitchens, which includes four residential towers ish developer Kuzu, one of the largest ers with 1480 residential units, a Private gardens are designed on well. sound insulation among residential with 634 apartments. contracting companies in Turkey. 5-star hotel with 120 private hotel each fl oor to make the nature breathe Qatari Diar off ers a unique oppor- units, intelligent security systems in Qatari Diar also said it is currently He stressed that confi dence in the units and 95 hotel apartments, shops, into the heart of each residential unit. tunity to invest in Turkey with the residential units. The residents will in the process of launching the second strength of the Turkish economy was with all hotel rooms enjoying a spec- Due to its unique design, the only prestigious Sea Pearl Atakoy residen- also be able to access a range of other phase of the project, which includes the catalyst behind the follow-up and tacular sea view. Sea Pearl Atakoy project in Istanbul, tial project, which embodies all the services.

QIC executive meets with Romanian ambassador to boost business ties Qatar businessmen keen to invest in Cote d’Ivoire

atari businessmen have and trade co-operation between expressed keen interest to both countries “would grow to Qexplore investment op- higher levels.” portunities available in the Re- He said “the Ivorian economy public of Cote d’Ivoire’s agricul- is open” and off ers investment ture, mining, tourism, and real incentives for foreign investors estate sectors, according to Qatar such as free remittance and VAT Chamber offi cial vice chairman exemption, as well as custom and Mohamed bin Towar al-Kuwari. taxes incentives for investors ex- Al-Kuwari made the statement tended to 15 years. during a recent business meeting Essis noted that Cote d’Ivoire with State Secretary to the Prime saw signifi cant economic reforms Minister in charge of Private In- and is leading other African coun- vestment Promotion Emmanuel tries that witnessed rapid eco- Essis and Chamber of Commerce Qatar Chamber off icial vice chairman Mohamed bin Towar al-Kuwari nomic development. Tourih added and Industry of Ivory Coast chair- hands over a token of recognition to Republic of Cote d’Ivoire’s State that Cote d’Ivoire is interested to man Faman Tourih. Secretary to the Prime Minister in charge of Private Investment bring in investments from Qatari The meeting focused on ways Promotion, Emmanuel Essis in the presence of Chamber of Commerce businessmen. of enhancing economic and trade of Ivory Coast chairman Faman Tourih and other dignitaries. Ouattara, in a speech delivered relations between Qatar and Cote before offi cials of Qatar Chamber d’Ivoire and the establishment of His Highness the Amir Sheikh both countries’ distinguished re- and Qatari Businessmen Associa- business alliances and partner- Tamim bin Hamad al-Thani to lations.” He also stressed Qatar tion, encouraged Qatari business- ships between Qatari and Ivorian Cote d’Ivoire last year established Chamber’s keenness to bolster men to invest in his country and Qatar Insurance Company (QIC) senior deputy group president and chief executive Ali al- businessmen. a roadmap to both countries’ rela- co-operation with the Ivorian benefi t from the opportunities it Fadala recently met with Romanian ambassador Cristian Tudor at the QIC Headquarters in Addressing the attendees, al- tions at various fi elds, especially Federation of Chambers, noting off ers in the agricultural, indus- West Bay. “As the leading insurer in the Middle East and North Africa region, Qatar Insurance Kuwari said both countries enjoy in the economic and investment that “it will help deepen relations trial, and real estate sector. Group engages in strategic partnerships in various sectors such as infrastructure, healthcare “strong ties” and “share joint de- opportunities. between both countries’ busi- He said the discussions held etc., that assist in embedding technologically advanced, innovative solutions to achieve sire” to elevate relations to higher He also lauded the ongoing nessmen.” with businessmen from both sides further growth and sustainability in the business,” al-Fadala said. Over the past few months standards, especially in the eco- visit of Cote d’Ivoire President Essis said both Qatar and Cote “will open the door for further the relations between Qatar and Romania have grown by leaps and bounds. nomic and trade sectors. Alassane Ouattara to Qatar, say- d’Ivoire “enjoy distinct relations,” economic co-operation in the Al-Kuwari said the visit of ing the visit “will push forward and expressed hope that economic future.” Gulf Times 2 Tuesday, September 18, 2018 BUSINESS Banking and industrials equities weigh on Qatar bourse

By Santhosh V Perumal for more than 49% of the total volume. Gulf individuals turned net sellers to the transactions by 4% to 345. There was a Business Reporter The Total Return Index fell 1.1% to 17,324.08 extent of QR0.16mn compared with net 22% shrinkage in the transport sector’s points, the All Share Index by 1.1% to buyers of QR0.34mn on Sunday. trade volume to 0.21mn shares, 43% in 2,873.2 points and the Al Rayan Islamic Non-Qatari institutions’ net buying value to QR5.28mn and 27% in deals to The Qatar Stock Exchange continued to Index (Price) by 0.74% to 2,363.74 points. weakened significantly to QR23.17mn 201. remain under the bearish spell for the The banks and financial services index against QR36.6mn on September 16. However, the insurance sector’s trade second day yesterday, dropping more shrank 1.8%, followed by industrials (1.11%), However, local individual investors were volume more than quadrupled to 0.46mn than 109 points, mainly dragged by telecom (0.87%) and realty (0.41%); while net buyers to the extent of QR27.66mn equities and value also more than banking and industrials equities. consumer goods gained 0.38%, transport compared with net sellers of QR34.37mn quadrupled to QR16.78mn on more-than- Strong selling pressure from Gulf and (0.33%) and insurance (0.09%). the previous day. doubled transactions to 139. domestic funds drove the 20-stock Qatar About 61% of the traded stocks were in the Non-Qatari individuals’ net buying The telecom sector’s trade volume Index down 1.1% to 9,832.68 points. red with major losers being QNB, Qatar increased perceptibly to QR3.22mn doubled to 1.28mn stocks, value soared Doha Bank-sponsored exchange traded Islamic Bank, Masraf Al Rayan, Industries against QR2.21mn on Sunday. 62% to QR14.1mn and deals by 27% to 254. fund QATR declined 1.06%; whereas Qatar, Qatari Investors Group, Vodafone Total trade volume fell 8% to 5.59mn The real estate sector’s trade volume Masraf Al Rayan-sponsored QETF gained Qatar, Ezdan, Mazaya Qatar and United shares and value by 7% to QR183.16mn, expanded 24% to 0.97mn shares to more 1.18%. Development Company; even as Nakilat, Zad while transactions rose 8% to 3,130. than double value to QR27.95mn on a 65% Islamic equities were seen dropping Holding and Barwa were among the gainers. The banks and financial services sector jump in transactions to 578. slower than the other indices in the Gulf institutions’ net profit-booking saw a 52% plunge in trade volume The industrials sector reported a 17% market, which reported 15.36% gains year- strengthened substantially to QR28.87mn to 1.47mn equities, 41% in value to growth in trade volume to 0.91mn to-date. compared to QR5.41mn on September 16. QR60.23mn and 19% in deals to 852. equities, 67% in value to QR30.37mn and Strong selling pressure from Gulf and domestic funds Trade turnover and volumes were on the Domestic institutions turned net sellers to The consumer goods sector’s trade 29% in deals to 761. drove the 20-stock Qatar Index down 1.1% to 9,832.68 decline in the bourse, where the banking the tune of QR25.02mn against net buyers volume plummeted 33% to 0.28mn In the debt market, there was no trading points yesterday and telecom sectors together accounted of QR0.63mn the previous day. stocks, value by 35% to QR28.45mn and of treasury bills and sovereign bonds.

Turkish lira weakens, Turkey is said to plan bank shares fall after help for banks to deal Erdogan’s Isbank comments with bad loans pile-up Reuters Istanbul Bloomberg Istanbul urkey’s lira weakened 2% and banking shares fell yesterday after he Turkish government will TPresident Recep Tayyip Erdogan unveil measures to help banks was quoted as calling for an investiga- Ttackle the expected pile-up tion into members of the opposition who of bad loans resulting from the lira’s serve on the board of the country’s biggest plunge and soaring interest rates, ac- lender. cording to people with knowledge of The lira’s decline — it fell as far as the matter. 6.3300 to the dollar in afternoon trade The plan will seek to mitigate the — all but erased the gains made since the need for capital injections and pro- central bank’s mammoth interest rate hike pose carving out non-performing of 6.25 percentage points last week. loans for transfer to a state-designat- The Hurriyet newspaper yesterday ed entity, said the people, who asked quoted Erdogan as saying authorities not to be named because the delibera- should look into members of the main tions are confi dential. The measures opposition Republican People’s Party are likely to be announced on Thurs- (CHP) over its 28% stake in Isbank, be- day, one of the people said. queathed to the bank by Mustafa Kemal Shares of Turkish banks rallied Ataturk, founder of the Turkish Repub- on the news. Turkish lenders have lic. been struggling to deal with a rising While the CHP does not receive divi- number of restructurings after the lira dends from the stake — those go to cultur- dropped about 40% against the dol- al associations, as stipulated by Ataturk’s lar this year, matching the Argentine will — party members do have seats on the peso as the world’s worst-performing bank’s board. currency and hurting fi rms’ ability “It owns 28% of Isbank shares. It can’t to repay foreign-currency loans. The get money from there but it has four board energy industry alone owes $51bn to members. What do these four members the nation’s banks. do? This must be looked into,” Hurriyet “The creation of a so-called bad quoted Erdogan as telling reporters on his bank to absorb all of the debts, which plane returning from Azerbaijan. are bound to start non-performing, The lira stood at 6.2900 to the dollar at may dilute some of the risks associ- 1515 GMT. ated with the Turkish banking sec- A cashier counts out Turkish lira banknotes on the counter of a foreign currency exchange store in Istanbul. Turkish lenders have been struggling to deal with a Isbank shares fell nearly 6% and the tor,” said Julian Rimmer, a trader at rising number of restructurings after the lira dropped about 40% against the dollar this year, hurting firms’ ability to repay foreign-currency loans. sell-off extended to the broader banking Investec Bank Plc in London. “But the index, which dropped 2.4%. subsequent lack of transparency will the people. On Thursday, Treasury pared losses from as much as 2.6% to plan when reached by Bloomberg. triggered by US sanctions over the Isbank dollar bonds also fell. concern bond investors and there is and Finance Minister Berat Albayrak a 1.8% decline as of 2.17pm in Istanbul. “Steps will be taken toward liquid- detention of an American pastor, and “Market hating Erdogan’s comments” no way of avoiding a general decline in is expected to announce a medium- About half of Turkey’s non-fi nancial ity in banks,” Dunya newspaper cited accelerated when US President Don- about Isbank, said Timothy Ash of Blue- Turkey’s overall creditworthiness, no term economic programme with fi s- companies’ total liabilities of $331bn at Albayrak as saying on Friday. “Now, ald Trump imposed tariff s on some of Bay Asset Management in an email. matter where you park the NPLs.” cal and macroeconomic targets for end-June is with banks based in Tur- we are waiting for banks to take steps the nation’s imports. Erdogan and his aides have previously The new measures were discussed the next three years, and the help for key, according to central bank data. toward the manufacturing industry Last week, the central bank jacked called for greater scrutiny of the CHP over in a series of meetings between bank banks will likely be unveiled then, the The ratio doubled from 2008. and this approach should be on a win- up rates to 24%, more than expected, the stake. executives and senior government of- person said. The Treasury and Finance Ministry win basis.” though the currency is still trading One of his aides in 2016 called for its fi cials last week, according to one of The Borsa Istanbul Banks Index didn’t immediately comment on the The lira’s losses in August were below where it was in July. nationalisation.

Abu Dhabi to IPO Cepsa in mega deal Abu Dhabi is pushing ahead with an initial public offering for Spanish oil company Cia Espanola de Petroleos SAU, in what could be Gap grows between what investors the largest such deal in a decade, according to Bloomberg. The emirate’s Mubadala Investment Co will offer a stake of at least 25% in Cepsa in the fourth quarter, the state-owned investor said yesterday in a want, and what Egypt is off ering statement. The Madrid-based refiner will list on Spanish exchanges. Mubadala is proceeding with an IPO rather Bloomberg fl ation being on target, said Mahmoud El than a sale after potential bidders were Cairo Masry, an economist at Pharos Holding narrowed down to private-equity firm in Cairo. Egypt’s Monetary Policy Com- Carlyle Group LP, people familiar with the mittee meets on September 27. matter said previously. Cepsa could raise gypt has managed to stay under The yields on one-year T-bills have about €3bn ($3.5bn), people said, making the radar throughout the emerg- risen by about 160 points since the be- it the biggest oil IPO in about 10 years, Eing-market rout, but that doesn’t ginning of the year despite a 2 percent- according to data compiled by Bloomberg. mean its assets are unscathed. age-point cut in benchmark rates. The That would value the whole company at The nation cancelled three consecu- government last sold one-year and six- as much as €10bn, handing Abu Dhabi tive Treasury bond auctions – latest of month notes on Thursday at a pretax significant paper gains because its funds which was yesterday – after investors rate of 19.296% and 19.501%, respec- took full control of the firm in 2011 in a asked for “unrealistic” yields. Demand tively. deal valuing it at about €7.5bn. A unit of for Egyptian debt across maturities On Sunday, the government sold Mubadala acquired the almost 90-year-old weakened in August and September 4.8bn pounds worth of 9-month T- Cepsa amid a push to invest in downstream compared to the average of the preced- bills – nearly 60% of the 8bn it had of- industries such as oil refining to ensure ing 13 months, central bank data show, fered – with the average yield rising 12 future demand for crude from the UAE. even though the currency has been basis points to 19.757%. Citigroup Inc, Bank of America Merrill relatively stable this year. That has Analysts have said the spillover from Lynch, Banco Santander SA and Morgan spurred an increase in yields across the the emerging markets rout prompted Stanley are joint global coordinators and board. foreigners to sell Egyptian debt, help- bookrunners, according to the statement. The nation needs to fi gure out how ing push up yields. There could be a Barclays Plc, BNP Paribas SA, First Abu to keep its debt attractive or else it risks fl ip-side, however. Ahmed Badr, CEO Dhabi Bank PJSC, Societe Generale SA and seeing its yields rise further, which for the Middle East and North Africa UBS Group AG are additional bookrunners. would make the government’s plans to at Renaissance Capital, told Bloomberg Rothschild & Co is acting as financial cut its defi cit even more challenging. TV in an interview that higher returns adviser. Central to that may be holding interest could make Egypt attractive to foreign rates stable in the long-term, despite in- investors once again. Gulf Times Tuesday, September 18, 2018 3 BUSINESS High US stock valuations hinge on infl ation, interest rates

Reuters stocks, and relatively subdued infl a- Thomson Reuters I/B/E/S. Stocks are to Keith Lerner, chief market strate- They project the S&P 500 will fi nish companies, as a reason why those his- New York tion supports low interest rates. commonly valued by their forward P/E gist with SunTrust Advisory Services next year at 3,350, a roughly 15% rise torical comparisons may not be as ap- “There’s an argument historically ratios, meaning their prices divided in Atlanta. from current levels. propriate. with that type of infl ation backdrop by earnings estimates for the next 12 Annual CPI last topped 4% about 10 Credit Suisse equity strategist Another factor is the relative attrac- nvestors are banking on tame infl a- and rates where they are, that you can months. years ago. Patrick Palfrey said tax cuts and oth- tiveness of equities to bonds and other tion and interest rates to support justify a higher valuation,” said Wal- The S&P 500’s average forward P/E When the CPI increases 0-2%, the er factors are propping up results in assets. IUS stock prices and help counter ter Todd, chief investment offi cer at over the past 33 years has been 15 times index trades at 16.6 times forward P/E. 2018, so next year’s decline in earnings For example, the earnings yield, any concerns over an anticipated slow- Greenwood Capital in Greenwood, earnings estimates, but the index has At 2-4 % CPI growth, the average is growth is less severe that it seems. which is earnings divided by a stock’s down in corporate earnings growth South Carolina. traded above that level for more than 16.4 times. This year’s underlying earnings price, for the S&P 500 is currently 6%, next year. The ability of stocks to hold relative- two years, according to Thomson Reu- In the 12 months through August, growth is closer to 9-10%, Palfrey said, against a roughly 3% yield for US 10- As they have recently, stocks in gen- ly high valuations is important because ters Datastream. the CPI increased 2.7%, according to which would be only slightly ahead of year Treasuries. eral are poised to trade at valuations, an expected slowdown in corporate This year, the index peaked at about data on Thursday. the nearly 8% expected by Credit Su- A spike in bond yields would change based on price-to-earnings ratios, profi t growth in 2019 could otherwise 18.5 times in late January before the Lerner calls a P/E of 16 to 17 times isse next year. Credit Suisse also sees the valuation equation, could be put to higher than they have traded on av- temper stock returns. market’s 10% correction, and now a fair current valuation, with global limited risk of a recession on the hori- the test as the Federal Reserve is ex- erage since the mid-1980s, investors Analysts will increasingly focus on trades at about 16.8 times. trade tensions and other issues causing zon, Palfrey said. pected to continue its tightening cycle. said. next year’s outlook as third-quarter More than 60 years of data show fl uctuations within that range. “The economy actually is still mov- Mark Hackett, chief of investment Yields on US government securities reports arrive next month. that the S&P 500 trades on average at “The way the market is looking at ing at a very healthy clip,” Palfrey said. research at Nationwide, said a 4% yield and consumer prices overall have been Spurred by corporate tax cuts that higher valuations when the consumer this is a 16 level on a forward P/E basis While current P/Es are higher than on the 10-year US Treasury note would moving higher, although they remain took eff ect this year, earnings of com- price index (CPI), a common measure is pretty good support,” Lerner said. average historically, strategists point pressure equities, although he doesn’t relatively moderate. panies on the benchmark S&P 500 in- of infl ation, is rising annually between Equity strategists at Credit Suisse to a change in the composition over see that level in the near term. Investors said low bond yields mean dex are expected to climb 23% in 2018, 0 to 4%, compared to when it is higher project the forward P/E will drift high- time of the S&P 500, including a “Every investment is competition reduced investment competition for and then 10% in 2019, according to or when there is defl ation, according er and end 2019 at 18 times. greater weight for higher-valued tech for that next dollar,” Hackett said. Only economist to call Russia Nasdaq restores Nordic rate hike was clearing buff er after also in for jolt

Bloomberg tral bank’s rationale as driven Moscow by the need to rein in risks of faster price growth and infl a- power trader default tion expectations caused by he sole economist to rouble volatility. Similarly, the Reuters correctly predict the central bank will refrain from Oslo TRussian central bank’s purchases of foreign currency fi rst interest-rate increase on the market to avoid adding since 2014 felt a jolt at seeing to instability, she said. embers of Nasdaq’s Nordic com- the outlook that accompanied The rouble followed most modities exchange have fully Friday’s decision. emerging-market currencies Mreplenished vital clearing house For Region Investment Co’s lower yesterday after a surge of contingency funds that were lost last Valery Vaisberg, whose fore- 2.7% last week, trading 0.2% week when a single Norwegian trader de- cast was the only one on target weaker at 68.1850 against the faulted, the exchange operator said. in a Bloomberg survey of 42 dollar in Moscow. Investors Einar Aas, a derivatives trader who analysts, the upswing in infl a- anticipate the Russian cur- made large bets on the power market, tion assumed by policy makers rency will remain among the left a €114mn ($133mn) hole in the clear- is, “of course, pessimistic.” world’s most unstable, with its ing house buff ers when his funds ran out, After a selloff in the rouble one-month implied volatility drawing scrutiny from regulators seeking over recent weeks, the Bank of the fourth-highest globally. to clarify whether rules were broken. Russia now sees price growth A decline of about 9% so far Energy fi rms and other players on the surging past its goal of 4%, this year in the nominal eff ec- 166-member market had been given reaching 5% to 5.5% by the end tive exchange rate will con- deadline to cover the loss or face default of 2019 from 3.1% last month. tribute nearly one percent- themselves. That’s an upward adjustment age point to annual infl ation, “The Member Default Fund now has of one percentage point in the according to Nabiullina. A been recapitalised by 100%, or €107mn path for infl ation it laid out value-added tax increase will ($125mn),” Nasdaq said in a statement. earlier. also boost price growth by one The company had previously said it “I didn’t expect a serious percentage point in 2019, the would replace the remaining loss of €7mn change in the central bank’s central bank estimates. itself. forecasts,” said Vaisberg, head Infl ation might even touch Clearing houses like the one oper- of research at Region, an in- 6% at its peak in the fi rst half ated by Nasdaq are vital for the stability vestment company in Moscow of 2019, the governor said. of markets, acting as an intermediary in that manages 479bn roubles Only two economists polled stock, bond or derivatives transactions ($7bn) in assets. “Now it’s by Bloomberg see infl ation and ensuring completion if one side goes clear that we are really shifting around that level or higher in bust. to a tightening cycle.” the fi rst and second quarters “Finansinspektionen (the Swedish The surprise pivot to rate of next year. Financial Supervisory Authority) is fol- increases was one part of a There’s little consensus lowing up on whether Nasdaq Clearing response by Governor Elvira about what course the central has acted in compliance with current Nabiullina to threats of US bank will take now. The gov- regulation and whether the regulation is sanctions that are stalking the ernor said further tightening sufficient,” the Swedish financial mar- Pedestrians walk past the Nasdaq MarketSite in New York (file). Members of Nasdaq’s Nordic commodities exchange have fully market and putting pressure isn’t inevitable but can’t be kets regulator said in a statement late on replenished vital clearing house contingency funds that were lost last week when a single Norwegian trader defaulted, according to on the rouble. ruled out. Rate cuts may not Friday. the exchange operator. Besides lifting the bench- resume for more than a year, The clearing house will also hire an ex- mark to 7.5% from 7.25% on she said. ternal party to review its handling of the ing the maximum level of €4 for which Following the default of Aas, Nasdaq’s they may be worried about trading safety,” Friday, the central bank also With infl ation still forecast case, Nasdaq Clearing chief executive of- Nasdaq Clearing’s risk model had been clearing house on Friday said it would ad- he said. announced it’s extending a around the target this year, the fi cer Julia Haglind told Reuters. calibrated. just its models and demand bigger capital “Lower liquidity could be an outcome pause in foreign-currency Bank of Russia may wait past While Aas had bet that Nordic-German Since 2011, when the current pricing buff ers in order to shift more of the risk of this, it is completely logical. After an purchases for reserves until next month’s meeting to see if spreads would narrow, this backfi red on system was set up, the largest change in from the mutualised default fund to the incident like this it is normal that you will the end of December. In Au- it needs to lift borrowing costs September 10 as heavy rain pushed down Nordic-German spreads on any single day owners of individual portfolios. see an eff ect on liquidity. gust, it initially suspended the again, said Vaisberg. Although prices in the hydroelectric-dependant had been €1.6, Nasdaq said, calling the “The fact that they are increasing mar- And it is unfortunate as we have seen programme – conducted on the chance of rate increases is Nordic region, while a spike in the cost of September 10 market move “a true ‘Black ginal requirements could decrease (mar- liquidity falling over the years,” he added. behalf of the Finance Minis- higher in the fi rst and second carbon drove up German prices, Nasdaq Swan’ event.” ket) liquidity,” investor relations manager Nasdaq on Friday also deposited $22mn try under the so-called budget quarters of 2019, the central said. Nordic power prices continued to fall Maans Holmberg at Finnish power fi rm in additional funds on a temporary basis rule – until the end of this bank could refrain from tight- In a single day, the difference between on Monday due to wet weather and linger- Fortum told Reuters. to help restore trust in the market, the ex- month. ening policy further in 2018 if Nordic and German power prices for ing concerns about the default, said Lauri “But if they didn’t increase them after change said. Aas is now barred from trad- Speaking after the decision, infl ation ends this year near 2019 widened by €5.56, 17 times more Riihimaki, a trading manager at Finnish last week’s event maybe some members ing, and said on Thursday that he risked Nabiullina explained the cen- 4%, he said. than the average daily move and exceed- energy services company Enegia. would anyway reduce their liquidity as personal bankruptcy. Relief for Rusal, but aluminium’s political risks remain

By Andy Home removed, political risk is not going to dis- is that they will remain “contingent on But on the flip side, why haven’t the London appear any time soon from the aluminium such performance either not being prohib- sanctions already been lifted in full, given market. ited or being authorised by OFAC.” the US administration’s soothing noises Relations between the United States That sanctions clock, in other words, is about not wanting to inflict excessive The United States has thrown Russian and Russia, the world’s second largest still ticking. collateral damage on Rusal and signs that aluminium company Rusal a lifeline by producer of the metal, remain strained, to Swiss trade house Glencore, which mar- Deripaska is prepared to reduce his influ- loosening sanctions imposed on the say the least. kets a significant amount of Rusal metal to ence in the company? company in April. Relations between the United States the rest of the world, is likely to have the It feels as if OFAC has given Rusal some Critically, the US Treasury has tweaked and China, the world’s largest producer, risk appetite to capitalise on exactly this breathing space but is not yet ready to its sanctions to allow Rusal to enter into are deteriorating by the day as the drums sort of shift in the US stance. release fully the sanctions pressure, imply- new contracts with existing customers. of trade war beat ever louder. But others such as the automotive com- ing a second extension of that deadline. This is good news for the Russian com- The Off ice of Foreign Assets Control panies that buy Rusal’s aluminium alloy That’s probably not going to be enough pany, which has been shunned by buyers (OFAC), which administers US sanctions, products may be considerably more wary for risk-averse customers to commit to negotiating 2019 shipments. announced on Friday the changes in the until the sanctions threat is fully dispelled. 2019 contracts, meaning there will be a It’s also good news for the aluminium form of an amended list of “Frequently This is widely assumed to be a case of significant amount of aluminium, par- market, which was facing the prospect Asked Questions”. “when” not “if” in the aluminium market. ticularly in alloy form, without an obvious of 3.7mn tonnes of Rusal product being The “maintenance” of existing The London Metal Exchange (LME) home next year. locked out of the supply chain. contracts has been extended to include three-month aluminium price is cur- In less troubled times the sanctions on However, the broader sanctions threat “transactions and activities...in a manner The United States has thrown Russian aluminium company Rusal a rently trading around $2,020 per tonne, Rusal would already have been removed against Rusal, a by-product of the sanc- consistent with past practices that existed lifeline by loosening sanctions imposed on the company in April pretty much where it was before the after a deal on just how far Deripaska tions against its oligarch owner Oleg between the party” and Rusal prior to the April 6 sanctions sent it rocketing to a would have to step away from the Deripaska, remains. imposition of sanctions on April 6. Even stockpiling Rusal metal may be al- season” has been taking place at Metal high of $2,718. company. US Treasury Secretary Steven An October 23 deadline for customers Existing contracts were already allowed lowed, if the “transaction history indicates Bulletin’s aluminium conference in Berlin, OFAC’s latest move will reinforce the Mnuchin said back in July that “we weren’t to wind down business with the company to run up until the October 23 sanctions that the scope and extent of maintaining but Rusal faced being locked out of the market’s conviction that sanctions will looking to put sanctions on aluminium still stands, leaving any new contracts deadline. inventory is consistent with past practice.” talks as buyers balked at the risk of falling be lifted once Deripaska steps back from companies.”Rather, “the intent was to still beholden to the same underlying Now, new contracts will be allowed be- The concession comes just as global prey to secondary sanctions. Rusal. change the behaviour of the oligarch.” uncertainty about when sanctions will be yond that date if they are consistent with aluminium producers and consumers are The question now is whether OFAC has Why hold out the prospect of new con- fully lifted. past practice, based on a demonstrable negotiating long-term contracts covering off ered enough to change those buyers’ tracts if they are only going to be snatched „ Andy Home is a columnist for Reuters. And even if sanctions are eventually transaction history. 2019 shipments. The annual “mating minds. The catch with any new contracts away again in a few weeks’ time? The views expressed are those of the author. Gulf Times 4 Tuesday, September 18, 2018 BUSINESS

Asia bourses hit by fears of new Indian rupee slumps as new Trump tariff s on China

AFP Hong Kong govt measures disappoint

Bloomberg Asian markets sank yesterday Mumbai following reports that Donald Sensex Trump is planning to hit China with another round of tariff s, he Indian rupee slumped with crashes dealing a blow to hopes the nation’s stocks as investors for talks between the two Tshowed their disappointment economic giants. with the government’s latest measures 505 points Traders sent regional equities to support the currency. surging on Thursday and The rupee closed 0.9% lower at 72.50 The BSE Sensex fell over 500 points Friday as it emerged that per dollar yesterday after sliding as yesterday dragged mainly by heavy Treasury Secretary Steven much as 1.1% to 72.68, adding to three losses in financial stocks such as Mnuchin had off ered to meet previous weeks of declines and near- HDFC. off icials from Beijing to avert ing last week’s record low of 72.91. The The broader Nifty 50 slipped below an all-out trade war. S&P BSE Sensex lost 1.3%. the 11,400 level. However, The Washington India’s government on Friday an- The rupee weakened against the Post and Wall Street Journal nounced steps to boost capital fl ows dollar despite the government said the president had and curb the ballooning current-ac- measures. decided to impose 10% count gap. Over the weekend, the government levies on $200bn of Chinese The measures included easing re- announced several steps to prop up imports and could make an strictions on overseas borrowing by capital inflows and to curb “non- announcement in the coming local manufacturers, potentially re- essential” imports, while sticking to days. laxing the cap on foreign ownership of its fiscal deficit targets. That would come on top of individual company bonds, tax breaks Moreover, continued selloffs the $50bn already announced on rupee debt sold abroad and limiting in global markets also added over the summer and would “non-essential imports.” pressure. account for about half of Traders and analysts deemed the European shares followed Asian China’s exports to the United measures to be insuffi cient to stem counterparts lower as investors States. Beijing has threatened losses in Asia’s worst-performing cur- grappled with the latest US threat to retaliate against any rency this year. to announce a new round of measures. There had been speculation the au- tariffs on Chinese goods in the “Whether this is little more thorities would act to buff er the impact latest escalation of their trade than the president using this of oil companies’ foreign-exchange conflict. leverage as a negotiating requirements in the spot market or tap The dollar slipped after Friday’s gains tactic, China off icials will funds from overseas Indians. and emerging-market currencies continue to be frustrated,” “The measures announced were declined. said Stephen Innes, head of more at the margin,” said Ashish Vai- Meanwhile, FIIs purchased shares Asia-Pacific trading at OANDA. dya, head of trading at DBS Bank in worth Rs 1,090.56 crore on Friday on “This good cop bad cop Mumbai. “More concrete measures like The rupee closed 0.9% lower at 72.50 per dollar yesterday aft er sliding as much as 1.1% to 72.68, adding to net basis, while DIIs bought equities routine continues to detailing the import control measures three previous weeks of declines and nearing last week’s record low of 72.91 worth Rs 115.14 crore. undermine Mr Mnuchin’s or opening a dollar window for oil re- The BSE Sensex closed lower eff orts as it’s still not clear fi ners will be positive.” had to say about the announcement: money abroad. Most of the measures is that the RBI and the government are by 505.13 points, or 1.33%, to if anyone other the Trump Government bonds sold off briefl y Oanda Corp (Stephen Innes, Sin- are aimed at increasing short-term ex- working together to ensure stability. 37,585.51, while the Nifty 50 fell himself is commissioned to on speculation the Reserve Bank of In- gapore-based head of trading for ternal debt or in eff ect worsening the Don’t need sharp appreciation of the 137.45 points, or 1.19%, to close at cut a deal. dia will need to hike benchmark rates Asia Pacifi c): It’s “intervention redux risk profi le of companies by increasing rupee. Measures will ensure less pres- 11,377.75. And not too unexpectedly, to support the rupee. The yield on 2013” all over again. A good bit of the unhedged exposure; could be consid- sure on INR. Meanwhile, BSE MidCap and and quite ominously, China the benchmark 10-year debt climbed measures announced are priced in into ered negative. Comments on moderate infl ation SmallCap were down 0.76% and could cancel the meeting.” as high as 8.18% before erasing gains INR. Still concerned about emerging- In an environment when the rupee is may lower expectations of hike in 0.05%, respectively. Hong Kong led losses to drop three basis points at close to market contagion. under pressure, foreign investors would benchmark rates in October. Sixteen out of 19 sectoral indices on yesterday, dropping 1.3% 8.10%. Feeling from the street is that provid- not be willing to increase their portfolio Standard Chartered (Gopikrishnan the BSE declined with finance losing while Shanghai ended 1.1% off . Indian equities extended two straight ed rupee stays below 74 against USD, of rupee-denominated assets like ma- MS, head of foreign exchange, rates most at 1.44% followed by energy Seoul and Singapore each lost weeks of declines. Goldman Sachs there will be no immediate concerns sala bonds. and credit for South Asia): Measures 1.30% and energy 1.20%. 0.7%, while Taipei, Jakarta and Group Inc lowered its rating on local about debt servicing. But the problem Giving additional exposure limits to were nowhere close to the big-bang On the other hand, realty gained Mumbai also saw deep losses. shares to the equivalent of a hold from with that level is it off ers a target for the overseas investors might not be much steps the market was expecting. Most 1.36%. Power and utilities also ended Sydney edged 0.3% higher. a buy, citing the less favourable outlook emerging market bears to focus on. help when they are already pulling out crucial announcement was restricting with gains. BPCL, HPCL, TCS, Tech Tokyo was closed for a due to elevated valuations, a potential HDFC Bank (Abheek Barua, money from the Indian markets. non-essential imports. Mahindra and Power Gird were public holiday. But while slowdown in economic growth and up- economist): Measures are better suit- FirstRand (Paresh Nayar, Mum- That’s where everyone is looking for among the top gainers, whereas Sun investors were in a selling coming elections. ed for when the sentiment in the glo- bai-based head of currency and details, especially if they do something Pharma, HDFC, Tata Motors, Bajaj mood, some positives could The fi rm had been bullish on Indian bal market is positive toward emerging money markets): It’s not what the on imports of electronic goods. Market Finance and Titan were among the be taken from reports that stocks since March 2014. markets, and when it is relatively easy markets were expecting but still posi- focus will be on whether they will open major losers. Trump was considering 10% Here’s what traders and economists for emerging market companies to raise tive for rupee. More important message a separate window for oil companies. tariff s instead of the feared 25%, said JP Morgan Asset Management global market strategist Kerry Craig. “No more tariff s would still be the best outcome for the markets but with the US Templeton says EMs approaching turning point administration seemingly wanting to pursue its longer term strategic agenda against Bloomberg expect to be winners and losers in the Commission show. It could go either Templeton, the California-based mon- ket’s gone from a tightening bias to now China, that’s unlikely to be the Sydney emerging market complex.” way, Siniakov said. The dollar might ey manager, which oversees $722bn in a little bit of easing. The kiwi dollar case, especially as there is The rout in emerging-market assets appreciate more if investors continue assets: suff ered because of that. We still think little in the way of pain being this year was spurred by higher Treas- to seek haven assets amid worsening What else are you buying? the hurdle’s pretty high for an easing. felt by the US economy or ranklin Templeton Investments ury yields and US tax cuts, alongside US and China trade relations, though We’re continuing to hold infl ation We see the Aussie potentially trading at equity market,” he said. says the rout in emerging markets angst over the escalation of trade re- it may be weaker if the US economy protection – we play in the zero cou- around 106 against the Kiwi. “Timing is also important Fmay be nearing a bottom though strictions between the US and China. starts to overheat and the chance of a pon swap space in US infl ation mar- Have we seen the end of the when it comes to enacting reckons there are still countries like the Still, Templeton’s willingness to sit out slowdown starts to weigh on investors’ kets. If late-cycle infl ation does spike in emerging market rout? any new tariff s. Philippines that will suff er. a directional bet on the dollar high- minds, he said. the US, then we have some protection. We are closer to a bottom, although A staggered implementation Given the uncertainty, the money lights how divided money managers “For us here locally we’re focusing We’ve also taken some options on some I don’t know that we’ve seen a real ca- is being the viewed as the manager is keeping a net neutral dol- are after the greenback has gained more on the Asia region, it’s about countries credit-default swap indices. pitulation in emerging markets. There’s best of a bad situation.” lar position, while making trades in- than 5% since mid-April. that are in a better fi scal position, good Why short the Aussie? been pressure, but in some ways it’s On foreign exchanges cluding shorting the Philippine peso, JPMorgan Asset Management and domestic stories and good policy ac- We’re looking at an Australian dollar been orderly. We haven’t seen the shock emerging market currencies as well as betting the Aussie will de- Man Group Plc are among those ex- tions by their leaders,” said Siniakov. range of 70 to 75 US cents for now. The and awe, for example, through a real continue to struggle as cline against the New Zealand dollar, pecting further strength. Others Some emerging markets, including Aussie dollar is being driven lower not dive in Treasury yields and a full fl ight investors fret over a possible said Chris Siniakov, managing direc- such as DoubleLine Capital’s Jeff rey Turkey and Indonesia will continue to by domestic factors, even though the to quality. spillover from financial crises tor of fixed income for Australia at Gundlach see a decline by year’s end. see pressure, he said. property market headlines have some What’s your view on the Fed? in Argentina, Turkey and Templeton. The greenback’s resurgence has The core of Templeton’s fi xed-in- off shore investors shorting the Aussie. The market’s priced for maybe 2.5 South Africa. In Hong Kong, “We are trying not to make the big prompted President Donald Trump come portfolio consists of investment- It’s a risk currency that’s caught up in interest-rate hikes in the US over the the Hang Seng closed down dollar decision at the moment be- to previously jawbone the currency. grade corporate bonds. But even there, the emerging market malaise. Until next 12 months. We think the most im- 1.3% to 26,932.85 points and cause we feel like it could pop either That’s not deterring speculative inves- things are looking expensive, he said. those issues go away, the path for the portant metric is going to be fi nancial Shanghai — Composite ended way,” Siniakov said in an interview in tors such as hedge funds that are still Below are excerpts of an interview Aussie is likely lower. asset prices – as long as they remain down 1.1% to 2,651.79 points. Sydney. “We are preferring to choose betting on further dollar gains, data with Siniakov and Andrew Canobi, di- On the other hand, New Zealand’s stable, the Fed is emboldened to keep where there’s relative value and who we from the Commodity Futures Trading rector of fi xed income for Australia at economy is not in bad shape. The mar- lifting rates.

China’s Huatai, Bluestar are said Tariff threat rattles emerging equities to weigh London share sales

Reuters they could have been, but still Turkish lira was the biggest daily the forint was trading off Friday’s Bloomberg Talks about listing GDRs in London London enough to weigh on sentiment,” faller, down 1.4% to levels hit prior three-week highs against the euro Hong Kong come as authorities in the UK and China said Per Hammarlund, chief to last Thursday’s hefty 625 basis ahead of Tuesday’s central bank move closer to starting what’s known the emerging markets strategist at SEB. point interest rate rise to 24%. meeting. London-Shanghai link, a system that will see merging equities fell over 1% The Asian manufacturing econ- Investor focus is now turning to The bank is expected to keep Huatai Securities Co, China’s third-largest companies from each country list shares yesterday in the wake of re- omies took the brunt of the sell- the damage to the real economy rates on hold at record lows, but brokerage by market value, and Bluestar in the other nation’s stock market. While Eports that the United States ing, with Chinese mainland shares from Turkey’s financial shock, may give clues on how it will with- Adisseo Co are among Chinese companies Chinese policy makers have said the aim is to was about to announce a new down 1.1% and Hong Kong down with the government’s medium- draw liquidity from domestic mar- considering UK listings as authorities prepare start the programme this year, no firms have round of tariffs on some $200bn 1.3%. term economic plan due out on kets. a trading link between the two countries, announced their participation. worth of Chinese imports, while Indonesia lost 1.8%, with the Thursday. Investors are also awaiting an people familiar with the matter said. Bluestar Adisseo, a Chinese animal- Turkey’s lira once again led cur- country’s trade defi cit larger than “The government needs to show address from Hungary’s prime Huatai, which has a market capitalisation nutrition firm, is separately weighing a GDR rency losses. expected in August as export they understand the consequenc- minister Viktor Orban later today of about $16bn, has asked investment banks off ering in London that could raise about MSCI’s benchmark emerging growth slowed. es of the present lira crisis...how following last week’s vote by the to pitch for a role on a potential sale of global $500mn, the people said. stocks index was down 1.2% as in- Indian shares fell 1.1 % and both much this impacts the broader European parliament to sanction depositary receipts in London, according to The company, controlled by state-owned vestors braced for more measures countries’ currencies remained macro picture and government fi - Hungary for fl outing European Un- the people. It is considering selling GDRs as China National Chemical Corp, is discussing in the ongoing US-Sino trade war, under pressure, with the Indone- nances,” said Hammarlund. ion rules on democracy and civil soon as this year, the people said, asking not the possibility with potential advisers, accord- with the Wall Street Journal report- sian rupiah down around 0.7% and “They need to show they are re- rights. to be identified because the information is ing to the people. ing that Beijing may reject an off er India’s rupee 0.9%. alistic about their budget assump- Egyptian stocks fell 0.5% after private. No final decisions have been made, and of new trade talks if the US moves The rupee is Asia’s worst-per- tions for next year. Otherwise the slumping 3.6% on Sunday to mid- The company could seek to raise the there’s no certainty the deliberations will lead ahead with its latest tariff round. forming currency against the dollar lira will quickly come under re- February lows in their biggest one- equivalent of at least several hundred mil- to any deals, the people said. The precise The new tariff s, reported to be this year, down nearly 12%. newed pressure.” day loss since January 2017. lion dollars, though a precise size hasn’t structure of the off erings remains unclear, set at 10% rather than the 25% Late on Friday India announced President Tayyip Erdogan said The moves followed the seizure been decided, two of the people said. Any and they could be delayed due to the novelty Washington had earlier said it was measures aimed at stemming the on Friday that Turkey was freez- of assets belonging to some Mus- deal would be complicated by the fact that of the transactions, the people said. considering, will cover internet fall, including cutting imports, ing new government investment lim Brotherhood leaders and an the company’s stock is already available to A representative for Huatai didn’t im- technology products and other easing overseas borrowing norms projects to cut public spending and arrest order on former President international investors in Hong Kong, where mediately respond to a request for comment, electronics, printed circuit boards for manufacturers and relaxing tackle double-digit infl ation. Hosni Mubrak’s sons Alaa and it trades at a discount to its Shanghai-listed while a representative for Bluestar declined and consumer goods. rules around banks raising rupee- Elsewhere in emerging Europe, Gamal on charges of stock market shares, the people said. to comment. “The tariff s are a bit lower than denominated overseas bonds. The Budapest shares fell 0.6% and manipulation. Gulf Times Tuesday, September 18, 2018 5 BUSINESS

It’s crunch week Workers in world’s richest again for Nafta with US and economies enjoy biggest Canada at odds

Bloomberg Here are the core remaining Ottawa issues: Dispute panels: Anti-dumping panels contained in Nafta’s Chap- pay raise in a decade US-Canada trade talks are poised ter 19. US Trade Representative to come to a head this week, as Robert Lighthizer has long de- Bloomberg negotiators bear down on their spised them and sees them as an Washington next deadline amid President assault on sovereignty and wants Donald Trump’s threats to cut his to kill them; Canada calls this a red largest export market out of the line issue, and sees them as an es- orkers in the world’s richest deal. sential arbiter in a trade pact with countries are getting their big- High-level negotiations are a country 10 times its size. Wgest pay bump in a decade, a expected to resume this week in a Cultural exemptions step toward solving a labour market puz- bid to reach a deal for Canada to Canadian Prime Minister Justin zle that’s unnerving central bankers. remain in the three-nation North Trudeau doesn’t want to open the As shrinking unemployment in the US, American Free Trade Agreement, door to US takeovers of Canadian Japan and eurozone fi nally forces com- a Canadian government off icial TV networks, or a flood of US panies to lift wages to retain and attract said, speaking on condition of content. staff , JPMorgan Chase & Co reckons pay anonymity. Congress is pressing Dairy: This is probably growth in advanced economies hit 2.5% for Canada to be kept in Nafta, Canada’s big bargaining chip. It’s in the second quarter, the most since the after the US and Mexico struck not in Nafta now but the US is eve of 2009’s worldwide recession. The their own deal last month. seeking more access to Canada’s bank predicts wages will accelerate to Time is running out to reach an protected market. Trudeau has near 3% next year. accord that can be signed before said he’ll bargain here. Fatter wallets should support global Mexico’s president-elect takes Cross-border shipping: The economic growth already enjoying its off ice. There are no high-level US wants Canada to raise its best upswing since 2011, while encour- talks scheduled in the middle of so-called de minimis level, under aging central banks such as the Federal this week, probably on Thursday, which cross-border shipments are Reserve to keep tightening monetary is considered the next deadline to shipped duty-free. policy before infl ation takes hold. It may reach a handshake deal that could Pharmaceuticals: The US and prove less welcome news for stock and be converted into legal text by the Mexico agreed to 10-year patent bond prices. end of this month, the off icial said. protection for biologic drugs, but “It’s a good thing: you’re more confi - The Trump administration – Canada wants a shorter period. dent in the sustainability of your expan- facing a fight with China, falling Longer patent protection raises sion, you’re more confi dent that you’re approval ratings and upcoming drug costs, and Canada is eyeing going to get infl ation moving up,” said midterm elections, among other expanded public funding for Bruce Kasman, chief economist at JP- issues – has begun to show more pharmaceuticals. Morgan in New York. “It is a signal that flexibility and the progress of talks Intellectual property: Mexico we’re normalising economic cycles.” picked up last week, two off icials and the US agreed to tougher If sustained, the pickup in pay will set- familiar with negotiations said. protections here. It’s a sticking tle a debate over whether the historical Whether it will be enough is the point, but there have been scant relationship between tightening labour major question. signs that Canada sees this as a markets and rising wages had broken “What has surprised me is look- core issue. The US-Canada deal down even as unemployment in devel- ing at the conciliatory position won’t substantially change any oped economies fell to its lowest since of the US on a lot of issues,” said of the autos agreement already 1980 by JPMorgan’s estimation. Laura Dawson, Director of the Wil- struck by the US and Mexico, of- Reasons to doubt the reliability of the son Center’s Canada Institute in ficials familiar with talks have said. Phillips Curve, an economic model cre- Washington. The US has dropped Autos had been the biggest stick- ated in the 1960s, include the assimilation some of its most high-profile de- ing point in earlier talks. In other of China and India into the global work- mands, but she stopped short of words, two of the subjects Trump force, greater automation, retiring baby making any bets. “They’re closer talks about most – cars and dairy – boomers being replaced by lower-paid now than they have been; that’s all are resolved or within grasp. workers, low productivity, companies in- I’ve got.” Next steps creasingly dominating industries and de- Congress view: If the countries The countries have been close clining labour-union membership. fail to get a deal this week, they’ll to a deal for weeks, but remain at By suppressing pay, such forces have be at a crossroads. Trump has loggerheads. This week, Canada’s been identifi ed as driving the rise of pop- threatened to proceed without parliament returns from its sum- ulism at the ballot box as voters embraced Canada, but Congress has warned mer break, squeezing Canadian President Donald Trump and Brexit in he can’t do that on the current US bandwidth. the hope they would spur prosperity. “In the US, the recent gains look sus- gest manufacturer, said in March that its Bank of America Corp found that young- legal path, which was for a three- Foreign Minister Chrystia “At some stage the Phillips Curve should tainable because labour slack has fi nally pay raises this year top the 3% increase of er workers and women in particular place country deal. House Speaker Paul Freeland, who is Trudeau’s Nafta reassert itself as the labour market con- been reduced to a critical level. However, 2017 and a 2.4% bump in 2016. greater importance on non-monetary Ryan and Minority Leader Nancy minister, is scheduled to be in tinues to tighten in much of the developed we will not have clarity regarding the Wages in the euro-area rose 2.2% in “lifestyle” benefi ts than their counter- Pelosi last week called for Canada parliament and will host a summit world,” said Megan Greene, chief econo- trend, as Hurricane Florence will muddy the second quarter, the most since 2012, parts. to be included. in Montreal beginning on Friday. A mist at Manulife Asset Management. the average hourly earnings results for while earnings excluding bonuses in the Some economists are confi dent that Trump has also threatened to Canadian cabinet meeting is also There are fresh signs employees are the next few months.” UK climbed 3.1% in July, the most since wages will extend their best run in a apply tariff s to Canadian auto scheduled for Tuesday, one Cana- already doing better. Average hourly “For the euro area, reduced slack 2015. decade. Those at Citigroup argue earn- exports to the US. dian government off icial said. earnings for private American workers seems to be translating into stronger pay The key question is how sustain- ings are now outpacing the rate of overall “It should be trilateral,” Pelosi, The off icial confirmed that climbed 2.9% over the year in August, gains and now fi rmer underlying infl a- able the recent gains will be. Even if pay gross domestic product growth in several whose Democrats are poised to Thursday is a target for any the most since the recession ended in tion. We expect this trend to continue.” growth does continue, any accompany- advanced economies and predict they potentially take control of the agreement this week - but also mid-2009. Flowers Foods Inc, a Tho- The positive trend in Japan is more sus- ing rise in infl ation will eat into the abil- will keep rising faster than infl ation as House of Representatives, said on stressed Canada doesn’t think it’s masville, Georgia- based maker of pack- tainable than before. With a super-tight ity of consumers to spend by pressuring productivity picks up and fi rms absorb Friday. Asked about a Mexico- a hard deadline. Trudeau has said aged bakery products, is among the com- job market, labour cash earnings in 2018 so-called real wages. JPMorgan esti- some of the higher labour costs. That’s only deal, she said: “I just don’t as much publicly, saying so-called panies reporting higher employee costs are growing over 1% a year on year on mates infl ation in developed markets will what happened in the last two US expan- think that is in the interest of this deadlines have come and gone in as the US jobless rate sits near the lowest average, much faster than the rate of rise to 1.9% by the end of next year from sions, they said in a new report. hemisphere to be able to prevail in talks. “We will do the work needed since the 1960s. about 0.5% in 2017,” says Carl Riccadon- 1.6% in July and is “on guard for a more Meantime, Andrew Cates and Rob- the global marketplace.” and try and get there as quick as “We are seeing both higher wages and na, Jamie Murray and Yuki Masujima, rapid escalation” because of wages. ert Dent, economists at Nomura Hold- Sticking points: Canada is we can, but we are going to make increased turnover, which has contrib- Bloomberg Economics. One reason to expect pay to stay weak ings Inc, wrote in a report last month off ering certain concessions, sure that we are doing what is uted to higher manufacturing work- In Japan, cash earnings rose 1.5% in is that companies are increasingly off er- that many of the trends which under- such as on dairy, in exchange for necessary to get the right deal force-related cost,’’ Steve Kinsey, chief July from a year ago and 3.3% in June. ing more fl exible working arrangements, mined pay are now reversing course as keeping parts of the current deal it for Canadians,” Trudeau said on fi nancial offi cer at Flowers Foods, told Again, companies are feeling a pinch. longer vacations and better benefi ts in- the working age population declines and deems essential. September 13. investors on August 9. Toyota Motor Corp, the country’s big- stead of higher wages. A recent survey by governments pursue protectionism.

Machines to handle half of work tasks by 2025, says report Fiat said to weigh new Marelli Bloomberg 15mn in the UK could be lost by 2035. A London McKinsey report in December produced one of the rosier assessments, forecasting jobs lost and created by new technology Machines and automated software will be might be about equal by 2030. approaches after low KKR bid handling fully half of all workplace tasks In its latest analysis, the WEF said within seven years, a new report from the the eff ects of automation may vary Bloomberg the deal maestro. Without the right World Economic Forum forecasts. But the substantially across industries, and Milan price, the preferred route remains group said technologies such as artificial predicted job losses to be heaviest in the spin-off of Marelli, which was intelligence, robotics, and precision mining, consumer, and information approved by its board in April, the medicine, could create more jobs than technology companies, and less within iat Chrysler Automobiles NV people said. they threaten. professional services firms. will evaluate other potential Market conditions for a spinoff In a study of executives and specialists Many new jobs may be less secure than Fbuyers for its Magneti Marelli and a listing of the unit on the Milan across 12 industries, published yesterday, in the past, as businesses are increasingly parts unit because the carmaker stock-exchange have deteriorated the WEF concluded that this so- called turning to contractors and freelancers, the views a bid made by KKR & Co as too in recent months as global trade “Fourth Industrial Revolution” could create Swiss foundation said. low, people familiar with the matter tensions and profi t warnings from 133mn jobs globally, while 75mn workers It warned there’s a significant gap between said. automakers including Fiat Chrysler, may be displaced. the skills workers currently have and those KKR off ered less than the €6bn as well as suppliers like Continental Saadia Zahidi, head of the WEF’s Center that may be required for future new roles. ($7bn) minimum valuation sought AG, have eroded confi dence in the for the New Economy and Society, said It estimates more than half of employees by Fiat, which ended the exclusiv- industry. companies had “a moral and economic at large companies would need significant ity of the talks, said the people, who Marelli’s French competitor, Fau- imperative” to invest in retraining and retraining in order to take advantage asked not be named because the recia SA, trades at about 3.8 times continuing education for their employees. of new opportunities created by digital talks are confi dential. expected earnings before interest, “Without proactive approaches, technology. The Italian carmaker can now Pedestrians are seen walking near to the off ices housing the headquarters taxes, depreciation and amortisa- businesses and workers may lose out,” But it said half of all companies plan evaluate other inquiries received for of Fiat Chrysler Automobiles in London. Fiat will evaluate other potential tion. At the same valuation, the Fiat she said. retraining only for “key roles,” and only the unit while it prepares to even- buyers for its Magneti Marelli parts unit because the carmaker views a bid unit would be worth less than 4bn The report is the latest in a series of one-third say they plan any retraining for tually separate the Milan-based made by KKR & Co as too low, people familiar with the matter said. euros, the people said. Marelli is ex- eff orts by academics, consultancies and at-risk workers. company and distribute shares to pected to report about 1bn euros in governments to assess the impact of new Best known for throwing an annual investors, another viable way to ex- vive if the private equity fi rm raises Mike Manley, who took over July Ebitda this year. technologies on employment. Previous summit of business and government tract value and simplify the group’s its valuation, the people said. Fiat’s 21, days before predecessor Sergio Volvo Cars earlier this month studies, including an earlier one by the leaders in the Swiss ski resort of Davos, the structure. board in April approved the plan to Marchionne died. Marchionne, who delayed plan for a share sale, say- WEF, have generally forecast automation WEF said it based its forecast on a survey The US fund wanted to pay spin off the auto-parts unit. had favoured a separation of the ing the timing is “not optimal.” The will destroy more jobs than it creates. of senior executives, strategy off icers around €5bn for Marelli because Fiat and KKR declined to com- business by distributing shares to backtracking from plans that were The scale of projected displacement varies and human resource specialists at 300 conditions for Fiat’s alternative ment. Fiat shares fell 0.8% to €14.86 investors, had said Fiat was open to said to involve a share sale as early as enormously between research groups, global companies, spanning 20 diff erent plan of spinning off the division in Milan trading, giving a market changing its mind for a “big check.” this fall in Sweden and Hong Kong however. countries. have deteriorated, people familiar value of €23bn. Holding company The decision on Marelli will also shows the worsening strain from A Bank of England study in 2015 produced It said these companies represented more with the matter said September 12. Exor NV stock fell 0.9%. be the fi rst M&A decision to be taken trade confl ict. some of the bleakest figures, forecasting than 15mn employees and their economies Talks with KKR, which would merge The sale of Marelli would become by Chairman John Elkann, who had Still, luxury carmaker Aston Mar- that as many as 80mn jobs in the US and represented 70% of global GDP. Marelli with its Japanese parts mak- one of the fi rst major milestones for been working with Marchionne for tin is pushing ahead with its plan for er Calsonic Kansei, could still re- Fiat Chrysler chief executive offi cer over 14 years, following the death of a London initial public off ering. Gulf Times 6 Tuesday, September 18, 2018 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Solidarity Saudi Takaful Co 16.14 1.51 137,449 Amana Cooperative Insurance 15.40 -0.90 232,848 Aloula Co 0.53 0.00 - Amana Cooperative Insurance 15.40 -0.90 232,848 Alabdullatif Industrial Inv 11.44 2.14 183,823 Al-Omaniya Financial Service 0.28 0.00 - Alabdullatif Industrial Inv 11.44 2.14 183,823 Saudi Printing & Packaging C 15.98 0.13 148,943 Al-Hassan Engineering Co 0.03 0.00 - Saudi Printing & Packaging C 15.98 0.13 148,943 Saudi Paper Manufacturing Co 11.90 -1.65 486,535 Al-Fajar Al-Alamia Co 0.75 0.00 - Saudi Paper Manufacturing Co 11.90 -1.65 486,535 Alinma Bank 20.32 3.67 15,905,381 Al-Anwar Ceramic Tiles Co 0.09 -1.06 45,900 Alinma Bank 20.32 3.67 15,905,381 Almarai Co 49.00 -0.31 357,480 Al Suwadi Power 0.12 0.00 - Almarai Co 49.00 -0.31 357,480 Falcom Saudi Equity Etf 29.50 -0.67 145,854 Al Sharqiya Invest Holding 0.10 0.00 290,250 Falcom Saudi Equity Etf 29.50 -0.67 145,854 United International Transpo 27.65 3.95 386,598 Al Maha Petroleum Products M 0.86 0.47 13,000 United International Transpo 27.65 3.95 386,598 Hsbc Amanah Saudi 20 Etf 31.00 0.00 1 Al Maha Ceramics Co Saoc 0.21 0.00 - Hsbc Amanah Saudi 20 Etf 31.00 0.00 1 Saudi International Petroche 19.34 1.68 841,180 Al Madina Takaful Co Saoc 0.10 -1.03 229,992 QATAR Saudi International Petroche 19.34 1.68 841,180 Falcom Petrochemical Etf 34.10 0.00 158 Al Madina Investment Co 0.04 0.00 7,500 Falcom Petrochemical Etf 34.10 0.00 158 Walaa Cooperative Insurance 23.38 -0.60 311,432 Al Kamil Power Co 0.38 0.00 - Company Name Lt Price % Chg Volume Walaa Cooperative Insurance 23.38 -0.60 311,432 Bank Al-Jazira 13.76 3.30 3,836,498 Al Jazerah Services -Pfd 0.55 0.00 - Bank Al-Jazira 13.76 3.30 3,836,498 Al Rajhi Bank 82.50 1.73 2,845,075 Al Jazeera Steel Products Co 0.28 0.00 - Zad Holding Co 100.01 3.16 29,006 Al Rajhi Bank 82.50 1.73 2,845,075 Samba Financial Group 29.25 5.79 1,948,334 Al Jazeera Services 0.12 0.00 - Widam Food Co 72.50 -0.68 870 Samba Financial Group 29.25 5.79 1,948,334 United Electronics Co 56.00 0.00 108,968 Al Izz Islamic Bank 0.09 0.00 25,730 Vodafone Qatar 8.75 -1.69 1,235,656 United Electronics Co 56.00 0.00 108,968 Allied Cooperative Insurance 17.30 -0.35 129,096 Al Buraimi Hotel 0.88 0.00 - United Development Co 14.44 -0.55 48,362 Allied Cooperative Insurance 17.30 -0.35 129,096 Malath Insurance 12.30 0.82 411,269 Al Batinah Power 0.12 0.00 - Salam International Investme 5.08 -0.59 44,434 Malath Insurance 12.30 0.82 411,269 Alinma Tokio Marine 18.80 -0.74 78,409 Al Batinah Hotels 1.13 0.00 - Qatar & Oman Investment Co 6.10 0.99 6,989 Alinma Tokio Marine 18.80 -0.74 78,409 Arabian Shield Cooperative 17.96 1.24 303,966 Al Batinah Dev & Inv 0.09 0.00 - Qatar Navigation 69.01 -0.12 29,495 Arabian Shield Cooperative 17.96 1.24 303,966 Savola 29.50 2.08 535,479 Al Anwar Holdings Saog 0.12 -2.50 33,881 Qatar National Cement Co 56.50 0.00 71,925 Savola 29.50 2.08 535,479 Wafrah For Industry And Deve 14.04 0.00 - Al Ahlia Insurance Co Saoc 0.36 0.00 100,000 Qatar National Bank 174.00 -2.82 86,034 Wafrah For Industry And Deve 14.04 0.00 - Fitaihi Holding Group 11.44 0.35 92,069 Ahli Bank 0.16 0.00 - Qatar Islamic Insurance 51.50 -1.53 7,392 Fitaihi Holding Group 11.44 0.35 92,069 Tourism Enterprise Co/ Shams 30.20 1.17 42,148 Acwa Power Barka Saog 0.78 0.00 - Qatar Industrial Manufactur 42.00 -2.33 44,270 Tourism Enterprise Co/ Shams 30.20 1.17 42,148 Sahara Petrochemical Co 16.50 2.48 1,549,151 Abrasives Manufacturing Co S 0.05 0.00 - Qatar International Islamic 57.85 -0.26 40,547 Sahara Petrochemical Co 16.50 2.48 1,549,151 Herfy Food Services Co 43.20 -0.46 16,737 A’saff a Foods Saog 0.61 0.00 - Qatari Investors Group 30.51 -1.68 68,457 Herfy Food Services Co 43.20 -0.46 16,737 Saudi Ind Investment Group 25.30 3.27 708,357 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Islamic Bank 137.00 -1.08 40,346 Saudi Ind Investment Group 25.30 3.27 708,357 Salama Cooperative Insurance 16.84 -0.94 316,597 #N/A Invalid Security 0.00 0.00 - Qatar Gas Transport(Nakilat) 17.70 0.57 182,302 Salama Cooperative Insurance 16.84 -0.94 316,597 Emaar Economic City 9.53 2.36 2,410,880 #N/A Invalid Security 0.00 0.00 - Qatar General Insurance & Re 49.00 0.00 - Emaar Economic City 9.53 2.36 2,410,880 Alahli Takaful Co 24.44 -0.24 38,845 #N/A Invalid Security 0.00 0.00 - Qatar German Co For Medical 5.07 0.00 10,826 Alahli Takaful Co 24.44 -0.24 38,845 Anaam International Holding 10.58 0.76 81,145 #N/A Invalid Security 0.00 0.00 - Qatar Fuel Qsc 152.00 0.41 122,722 Anaam International Holding 10.58 0.76 81,145 Saudi Telecom Co 81.50 0.74 206,495 #N/A Invalid Security 0.00 0.00 - Qatar First Bank 5.14 0.59 81,093 Saudi Telecom Co 81.50 0.74 206,495 Al Alamiya Cooperative Insur 36.80 -0.81 170,330 #N/A Invalid Security 0.00 0.00 - Qatar Electricity & Water Co 191.02 -0.04 22,436 Al Alamiya Cooperative Insur 36.80 -0.81 170,330 Saudi Industrial Services Co 13.00 1.09 59,129 #N/A Invalid Security 0.00 0.00 - Qatar Exchange Index Etf 97.85 -1.06 1,150 Saudi Industrial Services Co 13.00 1.09 59,129 Al-Ahsa Development Co. 9.89 -1.10 287,947 Qatar Cinema & Film Distrib 16.51 0.00 - Al-Ahsa Development Co. 9.89 -1.10 287,947 National Co For Glass In/The 18.00 -0.77 38,706 Al Rayan Qatar Etf 23.98 1.18 2,010 National Co For Glass In/The 18.00 -0.77 38,706 Dur Hospitality Co 19.70 2.50 152,962 Qatar Insurance Co 36.35 0.28 453,404 Dur Hospitality Co 19.70 2.50 152,962 Tabuk Cement Co 11.20 0.90 148,098 Ooredoo Qpsc 70.00 -0.30 45,952 Tabuk Cement Co 11.20 0.90 148,098 Sasco 15.02 0.27 78,942 UAE National Leasing 9.15 -0.44 28,782 Sasco 15.02 0.27 78,942 Saudi Cement 39.75 -0.87 55,542 Mazaya Qatar Real Estate Dev 6.90 -0.29 82,119 Saudi Cement 39.75 -0.87 55,542 Aseer Trading Tourism & Manu 9.94 0.40 132,710 Company Name Lt Price % Chg Volume Mesaieed Petrochemical Holdi 16.20 -0.12 279,460 Aseer Trading Tourism & Manu 9.94 0.40 132,710 Nama Chemicals Co 24.08 1.35 177,541 Al Meera Consumer Goods Co 152.00 -0.10 26,373 Nama Chemicals Co 24.08 1.35 177,541 Saudi Arabian Mining Co 50.20 3.29 875,341 Waha Capital Pjsc 1.83 -0.54 26,500 Medicare Group 67.47 -0.78 19,130 Saudi Arabian Mining Co 50.20 3.29 875,341 Yanbu Cement Co 20.30 -1.55 152,252 United Insurance Company 2.00 0.00 - Mannai Corporation Qsc 58.50 0.86 23,751 Yanbu Cement Co 20.30 -1.55 152,252 Saudi Fisheries 18.56 -0.64 499,792 United Arab Bank Pjsc 1.25 0.00 - Masraf Al Rayan 38.00 -1.35 284,788 Saudi Fisheries 18.56 -0.64 499,792 Ash-Sharqiyah Development Co 47.60 1.71 50,365 Union National Bank/Abu Dhab 5.00 -1.77 823,757 Al Khalij Commercial Bank 11.00 0.00 34,313 Ash-Sharqiyah Development Co 47.60 1.71 50,365 Makkah Construction & Devepl 80.60 -0.49 7,654 Union Insurance Co 2.03 0.00 - Industries Qatar 124.90 -1.65 76,062 Makkah Construction & Devepl 80.60 -0.49 7,654 Al Jouf Cement 8.99 0.11 314,445 Union Cement Co 0.00 0.00 - Islamic Holding Group 26.97 0.22 1,999 Al Jouf Cement 8.99 0.11 314,445 Abdullah A.M. Al-Khodari Son 7.24 0.00 - Umm Al Qaiwain General Inves 1.00 0.00 - Investment Holding Group 5.58 0.00 133,499 Abdullah A.M. Al-Khodari Son 7.24 0.00 - Knowledge Economic City 11.50 2.31 111,460 Sudan Telecommunications Gro 0.46 0.00 306,428 Gulf Warehousing Company 40.30 0.75 567 Knowledge Economic City 11.50 2.31 111,460 Al-Ahlia Cooperative Insuran 10.36 -0.96 137,906 Sharjah Islamic Bank 1.19 -0.83 100,000 Gulf International Services 17.00 -0.70 164,944 Al-Ahlia Cooperative Insuran 10.36 -0.96 137,906 Al Rajhi Co For Co-Operative 54.90 1.48 166,610 Sharjah Insurance Company 2.84 0.00 - Ezdan Holding Group 10.07 -0.89 169,152 Al Rajhi Co For Co-Operative 54.90 1.48 166,610 Alkhodar Ab Equity 54.10 1.50 239,229 Sharjah Group 1.30 0.00 - Doha Insurance Co 12.74 0.00 - Alkhodar Ab Equity 54.10 1.50 239,229 Kec Ab Equity 22.66 -0.09 83,854 Sharjah Cement & Indus Devel 0.99 0.00 - Doha Bank Qpsc 23.90 0.00 217,577 Kec Ab Equity 22.66 -0.09 83,854 Alahlia Ab Equity 23.32 1.22 9,646 Ras Al-Khaimah National Insu 3.20 0.00 - Dlala Holding 12.31 0.90 201,335 Alahlia Ab Equity 23.32 1.22 9,646 Arcci Ab Equity 7.75 1.04 616,951 Ras Al Khaimah White Cement 0.95 0.00 - Commercial Bank Pqsc 39.00 -0.08 448,949 Arcci Ab Equity 7.75 1.04 616,951 Appc Ab Equity 21.42 2.19 1,224,039 Ras Al Khaimah Ceramics 2.34 6.36 152,559 Barwa Real Estate Co 37.00 0.54 674,757 Appc Ab Equity 21.42 2.19 1,224,039 Albabtai Ab Equity 41.20 7.15 1,677,831 Ras Al Khaimah Cement Co Psc 0.70 0.00 50,000 Al Khaleej Takaful Group 9.61 -1.94 2,127 Albabtai Ab Equity 41.20 7.15 1,677,831 Allianz Ab Equity 85.60 -0.12 139,513 Ras Al Khaima Poultry 1.89 0.00 - Aamal Co 9.60 -0.83 46,004 Najran Ab Equity 9.63 -0.21 257,788 Rak Properties 0.60 -1.31 266,813 Altayyar Ab Equity 66.10 -2.36 184,834 Ooredoo Qpsc 72.90 0.00 - KUWAIT Ncb Ab Equity 8.44 0.48 102,864 Oman & Emirates Inv(Emir)50% 0.51 0.00 - Catering Ab Equity 43.70 -0.68 115,593 National Takaful Company 0.51 0.00 - SAUDI ARABIA National Marine Dredging Co 3.06 0.00 - Company Name Lt Price % Chg Volume Cityc Ab Equity 18.70 0.97 57,189 Dallah Ab Equity 17.80 0.00 47,718 National Investor Co/The 0.58 0.00 - Company Name Lt Price % Chg Volume United Wire Factories Compan 15.68 2.48 29,091 Northcem Ab Equity 14.62 1.11 115,009 National Corp Tourism & Hote 1.95 0.00 - Etihad Etisalat Co 17.86 1.71 1,218,041 Care Ab Equity 17.30 0.58 167,060 National Bank Of Umm Al Qaiw 2.50 0.00 40,000 United Wire Factories Compan 15.68 2.48 29,091 Dar Al Arkan Real Estate Dev 8.89 2.18 34,056,752 National Bank Of Ras Al-Khai 4.39 4.52 1,080 Etihad Etisalat Co 17.86 1.71 1,218,041 Alawwal Bank 14.04 -1.13 735,752 National Bank Of Fujairah 2.96 0.00 - Dar Al Arkan Real Estate Dev 8.89 2.18 34,056,752 Rabigh Refining And Petroche 21.96 3.20 1,987,454 Methaq Takaful Insurance 0.78 0.65 88,000 Alawwal Bank 14.04 -1.13 735,752 Banque Saudi Fransi 32.00 1.59 343,363 OMAN Manazel Real Estate Pjsc 0.45 -0.22 3,148,600 Rabigh Refining And Petroche 21.96 3.20 1,987,454 Saudi Enaya Cooperative Insu 19.76 -1.69 163,070 Invest Bank 2.10 0.00 - Banque Saudi Fransi 32.00 1.59 343,363 Company Name Lt Price % Chg Volume Mediterranean & Gulf Insuran 13.08 -4.80 818,050 Intl Holdings Co Pjsc 1.14 -4.20 423,330 Saudi Enaya Cooperative Insu 19.76 -1.69 163,070 Voltamp Energy Saog 0.00 Saudi British Bank 31.15 2.30 141,435 0.30 - Insurance House 0.85 0.00 - Mediterranean & Gulf Insuran 13.08 -4.80 818,050 Vision Insurance Saoc 0.00 Red Sea International Co 15.80 1.15 45,635 0.15 - Gulf Pharmaceutical Ind Psc 2.00 0.00 252,159 Saudi British Bank 31.15 2.30 141,435 United Power/Energy Co- Pref 0.00 Takween Advanced Industries 10.32 1.78 418,802 1.00 - Gulf Medical Projects 1.98 0.00 - Red Sea International Co 15.80 1.15 45,635 United Power Co Saog 0.00 Sabb Takaful 18.98 1.17 51,566 3.44 28 Gulf Cement Co 0.93 0.43 100,000 Takween Advanced Industries 10.32 1.78 418,802 United Finance Co 2.15 Saudi Arabian Fertilizer Co 77.50 1.17 270,756 0.10 25,360 Fujairah Cement Industries 1.20 0.00 - Sabb Takaful 18.98 1.17 51,566 Ubar Hotels & Resorts 0.00 National Gypsum 12.44 0.00 47,108 0.13 - Fujairah Building Industries 1.56 0.00 - Saudi Arabian Fertilizer Co 77.50 1.17 270,756 Takaful Oman 0.00 Saudi Ceramic Co 17.26 -0.12 53,971 0.13 - Foodco Holding Pjsc 3.35 -9.46 1,942 National Gypsum 12.44 0.00 47,108 Taageer Finance 7.69 National Gas & Industrializa 26.30 0.00 14,651 0.10 21,384 First Abu Dhabi Bank Pjsc 14.20 -2.61 10,410,180 Saudi Ceramic Co 17.26 -0.12 53,971 Sweets Of Oman 0.00 Saudi Pharmaceutical Industr 30.25 0.83 62,622 0.55 - Finance House 1.68 0.00 - National Gas & Industrializa 26.30 0.00 14,651 Sohar Power Co 0.00 Thimar 26.50 1.92 78,560 0.11 25,000 Eshraq Properties Co Pjsc 0.57 -0.35 2,315,998 Saudi Pharmaceutical Industr 30.25 0.83 62,622 Sohar Poultry 0.00 National Industrialization C 18.60 4.38 1,831,784 0.21 - Emirates Telecom Group Co 16.00 -0.99 799,204 Thimar 26.50 1.92 78,560 Smn Power Holding Saog 0.00 Batic Investments And Logist 36.00 -2.57 57,021 0.60 - Emirates Insurance Co. (Psc) 6.50 0.00 - National Industrialization C 18.60 4.38 1,831,784 Shell Oman Marketing - Pref 0.00 Saudi Electricity Co 16.08 -1.95 3,199,714 1.05 - Emirates Driving Company 7.40 5.71 3,000 Batic Investments And Logist 36.00 -2.57 57,021 Shell Oman Marketing 0.00 Saudi Arabia Refineries Co 39.80 0.51 166,893 1.49 495 Dana Gas 1.14 -1.72 11,581,989 Saudi Electricity Co 16.08 -1.95 3,199,714 Sharqiyah Desalination Co Sa 0.00 Arriyadh Development Company 15.98 0.88 448,515 2.68 - Commercial Bank Internationa 0.63 -10.00 200 Saudi Arabia Refineries Co 39.80 0.51 166,893 Sembcorp Salalah Power & Wat 0.00 Al-Baha Development & Invest 14.76 0.68 29,295 0.22 6,000 Bank Of Sharjah 1.08 0.93 335,000 Arriyadh Development Company 15.98 0.88 448,515 Salalah Port Services 0.00 Saudi Research And Marketing 100.20 -0.79 97,911 0.60 - Axa Green Crescent Insurance 0.50 0.00 - Al-Baha Development & Invest 14.76 0.68 29,295 Salalah Mills Co 0.00 Aldrees Petroleum And Transp 26.85 0.94 182,972 0.77 - Arkan Building Materials Co 0.56 3.52 1,000 Saudi Research And Marketing 100.20 -0.79 97,911 Salalah Beach Resort Saog 0.00 Saudi Vitrified Clay Pipe Co 45.70 -0.65 3,001 1.38 - Alkhaleej Investment 2.10 0.00 - Aldrees Petroleum And Transp 26.85 0.94 182,972 Sahara Hospitality 0.00 Jarir Marketing Co 176.20 0.11 51,813 2.38 - Aldar Properties Pjsc 1.82 -2.67 6,637,845 Saudi Vitrified Clay Pipe Co 45.70 -0.65 3,001 Renaissance Services Saog 0.00 Arab National Bank 31.45 1.45 163,621 0.41 402 Al Wathba National Insurance 12.76 0.00 - Jarir Marketing Co 176.20 0.11 51,813 Raysut Cement Co -5.26 Yanbu National Petrochemical 70.00 0.86 386,175 0.47 86,819 Al Qudra Holding Pjsc 1.05 0.00 - Arab National Bank 31.45 1.45 163,621 Phoenix Power Co Saoc -2.50 Arabian Cement 19.44 0.93 176,744 0.12 832,260 Al Khazna Insurance Co 0.25 0.00 - Yanbu National Petrochemical 70.00 0.86 386,175 Packaging Co Ltd 0.00 Middle East Specialized Cabl 7.22 1.40 233,905 2.21 - Al Fujairah National Insuran 300.00 0.00 - Arabian Cement 19.44 0.93 176,744 Ooredoo 0.00 Al Khaleej Training And Educ 12.34 0.33 178,836 0.53 139,357 Al Dhafra Insurance Co. P.S. 3.85 0.00 - Middle East Specialized Cabl 7.22 1.40 233,905 Ominvest -1.73 Al Sagr Co-Operative Insuran 12.16 0.16 608,946 0.34 69,459 Al Buhaira National Insuranc 2.21 0.00 - Al Khaleej Training And Educ 12.34 0.33 178,836 Oman United Insurance Co 0.00 Trade Union Cooperative Insu 22.02 0.36 227,330 0.31 - Al Ain Ahlia Ins. Co. 38.00 0.00 - Al Sagr Co-Operative Insuran 12.16 0.16 608,946 Oman Telecommunications Co -2.73 Arabia Insurance Cooperative 20.50 -0.97 447,694 0.86 81,000 Agthia Group Pjsc 4.70 0.00 100,661 Trade Union Cooperative Insu 22.02 0.36 227,330 Oman Refreshment Co 0.00 Saudi Chemical Company 32.45 0.46 45,122 1.75 - Abu Dhabi Ship Building Co 1.19 0.85 50,605 Arabia Insurance Cooperative 20.50 -0.97 447,694 Oman Qatar Insurance Co 0.00 Fawaz Abdulaziz Alhokair & C 23.40 2.63 439,504 0.12 6,300 Abu Dhabi Natl Co For Buildi 0.43 0.00 - Saudi Chemical Company 32.45 0.46 45,122 Oman Packaging 0.00 Bupa Arabia For Cooperative 96.50 1.79 55,338 0.28 - Abu Dhabi National Takaful C 4.40 0.00 - Fawaz Abdulaziz Alhokair & C 23.40 2.63 439,504 Oman Oil Marketing Company 0.00 Wafa Insurance 11.26 -2.26 416,520 1.10 - Abu Dhabi National Oil Co Fo 2.41 -0.82 923,941 Bupa Arabia For Cooperative 96.50 1.79 55,338 Oman National Engineering An 0.00 Jabal Omar Development Co 38.20 2.00 1,161,653 0.17 - Abu Dhabi National Insurance 3.75 0.00 - Wafa Insurance 11.26 -2.26 416,520 Oman Investment & Finance -2.91 Saudi Basic Industries Corp 116.80 -0.34 3,548,701 0.10 124,350 Abu Dhabi National Hotels 2.70 0.00 - Jabal Omar Development Co 38.20 2.00 1,161,653 Oman Intl Marketing 0.00 Saudi Kayan Petrochemical Co 16.28 8.10 20,663,862 0.52 - Abu Dhabi National Energy Co 1.13 0.00 1,010,498 Saudi Basic Industries Corp 116.80 -0.34 3,548,701 Oman Flour Mills 0.00 Etihad Atheeb Telecommunicat 5.35 0.00 - 0.74 800 Saudi Kayan Petrochemical Co 16.28 8.10 20,663,862 Oman Fisheries Co -1.15 Co For Cooperative Insurance 52.30 -0.19 191,103 0.09 307,442 Etihad Atheeb Telecommunicat 5.35 0.00 - Oman Europe Foods Industries 0.00 National Petrochemical Co 26.00 2.77 175,555 1.00 - Co For Cooperative Insurance 52.30 -0.19 191,103 Oman Education & Training In 0.00 BAHRAIN Gulf Union Cooperative Insur 14.18 -0.28 250,264 0.21 - National Petrochemical Co 26.00 2.77 175,555 Oman Chromite 0.00 Gulf General Cooperative Ins 13.50 1.05 49,897 3.64 - Gulf Union Cooperative Insur 14.18 -0.28 250,264 Oman Chlorine -1.25 Basic Chemical Industries 22.30 2.20 95,324 0.32 16,110 Company Name Lt Price % Chg Volume Gulf General Cooperative Ins 13.50 1.05 49,897 Oman Ceramic Company 0.00 Saudi Steel Pipe Co 21.54 3.56 578,806 0.42 - Basic Chemical Industries 22.30 2.20 95,324 Oman Cement Co -0.55 Zain Bahrain Bscc 0.00 0.00 - Buruj Cooperative Insurance 23.40 -0.34 98,928 0.36 13,039 Saudi Steel Pipe Co 21.54 3.56 578,806 Oman Cables Industry 2.88 United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co 78.20 -2.13 44,282 1.00 10,000 Buruj Cooperative Insurance 23.40 -0.34 98,928 Oman & Emirates Inv(Om)50% 0.00 United Gulf Holding Bsc 1.12 0.00 1,500 Southern Province Cement Co 33.45 -0.74 95,900 0.13 100 Mouwasat Medical Services Co 78.20 -2.13 44,282 Natl Aluminium Products 3.89 Trafco Group Bsc 0.32 0.00 100,250 Maadaniyah 18.20 1.34 29,051 0.37 7,718 Southern Province Cement Co 33.45 -0.74 95,900 National Securities 0.00 Takaful International Co 0.09 0.00 166,491 Yamama Cement Co 13.88 1.91 54,848 0.04 - Maadaniyah 18.20 1.34 29,051 National Real Estate Develop 0.00 Seef Properties 0.22 1.82 81,800 Jazan Energy And Development 15.64 1.03 114,995 5.00 - Yamama Cement Co 13.88 1.91 54,848 National Pharmaceutical 0.00 National Bank Of Bahrain Bsc 0.61 0.00 30,291 Zamil Industrial Investment 20.16 0.80 53,919 0.12 - Jazan Energy And Development 15.64 1.03 114,995 National Mineral Water 0.00 Nass Corp Bsc 0.10 0.00 26,236 Alujain Corporation (Alco) 30.10 3.61 437,984 0.10 - Zamil Industrial Investment 20.16 0.80 53,919 National Life & General Insu 0.00 Khaleeji Commercial Bank 0.08 0.00 20,000 Tabuk Agricultural Developme 9.98 1.63 76,100 0.34 - Alujain Corporation (Alco) 30.10 3.61 437,984 National Gas Co 0.00 Ithmaar Holding Bsc 0.11 0.00 582,500 United Co-Operative Assuranc 11.40 1.24 93,481 0.34 - Tabuk Agricultural Developme 9.98 1.63 76,100 National Finance Co 0.00 Investcorp Bank -$Us 9.40 0.00 2,000 Qassim Cement/The 31.90 -2.15 81,093 0.13 - United Co-Operative Assuranc 11.40 1.24 93,481 National Detergent Co Saog 0.00 Inovest Co Bsc 0.29 0.00 50,000 Saudi Advanced Industries 12.38 1.48 242,522 0.70 - Qassim Cement/The 31.90 -2.15 81,093 National Biscuit Industries 0.00 Gulf Hotel Group B.S.C 0.00 0.00 - Kingdom Holding Co 8.42 0.24 57,633 3.75 - Saudi Advanced Industries 12.38 1.48 242,522 National Bank Of Oman Saog 0.00 Gfh Financial Group Bsc 0.37 -2.67 1,218,000 Saudi Arabian Amiantit Co 5.82 1.57 518,636 0.18 640,731 Kingdom Holding Co 8.42 0.24 57,633 Muscat Thread Mills Co 0.00 Esterad Investment Co B.S.C. 0.00 0.00 - Al Jouf Agriculture Developm 22.68 0.44 18,629 0.08 - Saudi Arabian Amiantit Co 5.82 1.57 518,636 Muscat Insurance Co Saog 0.00 Eskan Bank Realty Income Tr 0.10 0.00 100,000 Saudi Industrial Development 8.20 0.00 127,881 0.80 - Al Jouf Agriculture Developm 22.68 0.44 18,629 Muscat Gases Company Saog 0.00 Delmon Poultry Co 0.00 0.00 - Riyad Bank 15.58 2.23 975,114 0.28 5,000 Saudi Industrial Development 8.20 0.00 127,881 Muscat Finance -1.10 Bmmi Bsc 0.72 2.14 25,000 The National Agriculture Dev 31.80 3.41 34,599 0.09 529,528 Riyad Bank 15.58 2.23 975,114 Muscat City Desalination Co 1.48 Bbk Bsc 0.44 0.00 6,000 Halwani Bros Co 46.30 -0.43 7,620 0.14 35,000 The National Agriculture Dev 31.80 3.41 34,599 Majan Glass Company 0.00 Bahrain Telecom Co 0.25 -0.80 380,000 Arabian Pipes Co 10.18 1.19 834,835 0.18 - Halwani Bros Co 46.30 -0.43 7,620 Majan College 0.00 Bahrain National Holding 0.38 0.00 20,000 Eastern Province Cement Co 20.22 -3.90 40,079 0.45 - Arabian Pipes Co 10.18 1.19 834,835 Hsbc Bank Oman 0.00 Bahrain Kuwait Insurance 0.00 0.00 - Al Gassim Investment Holding 10.44 -0.19 35,119 0.12 138 Eastern Province Cement Co 20.22 -3.90 40,079 Hotels Management Co Interna 0.00 Bahrain Islamic Bank 0.12 0.00 76,672 Filing & Packing Materials M 37.00 -0.54 109,382 1.25 - Al Gassim Investment Holding 10.44 -0.19 35,119 Gulf Stone 0.00 Bahrain Flour Mills Co 0.00 0.00 - Saudi Cable Co 23.90 3.20 267,930 0.12 - Filing & Packing Materials M 37.00 -0.54 109,382 Gulf Mushroom Company 0.00 Bahrain Duty Free Complex 0.71 0.00 146,800 Tihama Advertising & Public 39.15 1.42 94,448 0.31 - Saudi Cable Co 23.90 3.20 267,930 Gulf Investments Services -1.04 Bahrain Commercial Facilitie 0.75 0.00 29,184 Saudi Investment Bank/The 17.82 0.79 61,982 0.10 1,511,377 Tihama Advertising & Public 39.15 1.42 94,448 Gulf Invest. Serv. Pref-Shar 0.00 Bahrain Cinema Co ` 9.41 40,608 Astra Industrial Group 17.22 4.24 121,955 0.11 - Saudi Investment Bank/The 17.82 0.79 61,982 Gulf International Chemicals 1.03 Arab Banking Corp Bsc-$Us 0.40 0.00 100,000 Saudi Public Transport Co 14.20 0.85 700,230 0.20 9,400 Astra Industrial Group 17.22 4.24 121,955 Gulf Hotels (Oman) Co Ltd 0.00 Aluminium Bahrain Bsc 0.63 -0.79 62,869 Taiba Holding Co 29.50 -0.67 25,651 9.50 - Saudi Public Transport Co 14.20 0.85 700,230 Global Fin Investment 0.00 Albaraka Banking Group 0.28 0.00 25,000 Saudi Industrial Export Co 208.60 -0.67 28,180 0.09 - Taiba Holding Co 29.50 -0.67 25,651 Galfar Engineering&Contract -1.85 Al-Salam Bank 0.10 0.00 25,000 Saudi Real Estate Co 14.66 -0.54 691,545 0.11 2,707,936 Saudi Industrial Export Co 208.60 -0.67 28,180 Galfar Engineering -Prefer 0.00 Ahli United Bank B.S.C 0.67 0.00 2,800,526 Saudia Dairy & Foodstuff Co 86.00 -0.92 50,142 0.39 - Saudi Real Estate Co 14.66 -0.54 691,545 Financial Services Co. 0.00 #N/A Invalid Security 0.00 0.00 - National Shipping Co Of/The 31.45 2.78 1,362,344 0.18 - Saudia Dairy & Foodstuff Co 86.00 -0.92 50,142 Financial Corp/The 0.00 #N/A Invalid Security 0.00 0.00 - Methanol Chemicals Co 11.20 2.19 3,794,944 0.10 - National Shipping Co Of/The 31.45 2.78 1,362,344 Dhofar Tourism 0.00 #N/A Invalid Security 0.00 0.00 - Chubb Arabia Cooperative Ins 18.90 0.43 45,807 0.49 - Methanol Chemicals Co 11.20 2.19 3,794,944 Dhofar Poultry 0.00 #N/A Invalid Security 0.00 0.00 - Mobile Telecommunications Co 6.24 -3.26 5,216,968 0.18 - Chubb Arabia Cooperative Ins 18.90 0.43 45,807 Dhofar Intl Development 0.00 #N/A Invalid Security 0.00 0.00 - Saudi Arabian Coop Ins Co 12.12 0.50 207,714 0.28 - Mobile Telecommunications Co 6.24 -3.26 5,216,968 Dhofar Insurance 0.00 #N/A Invalid Security 0.00 0.00 - Axa Cooperative Insurance 22.10 0.64 71,404 0.14 - Saudi Arabian Coop Ins Co 12.12 0.50 207,714 Dhofar Fisheries & Food Indu 0.00 #N/A Invalid Security 0.00 0.00 - Alsorayai Group 12.30 1.15 192,529 1.28 - Axa Cooperative Insurance 22.10 0.64 71,404 Dhofar Cattlefeed 0.00 #N/A Invalid Security 0.00 0.00 - Bank Albilad 24.40 2.26 478,231 0.17 - Alsorayai Group 12.30 1.15 192,529 Dhofar Beverages Co 0.00 #N/A Invalid Security 0.00 0.00 - Al-Hassan G.I. Shaker Co 8.44 0.72 312,951 0.26 - Bank Albilad 24.40 2.26 478,231 Construction Materials Ind 0.00 #N/A Invalid Security 0.00 0.00 - Wataniya Insurance Co 23.50 -0.25 17,146 0.03 2,187 Al-Hassan G.I. Shaker Co 8.44 0.72 312,951 Computer Stationery Inds 0.00 #N/A Invalid Security 0.00 0.00 - Abdullah Al Othaim Markets 64.70 3.35 95,262 0.26 - Wataniya Insurance Co 23.50 -0.25 17,146 Bankmuscat Saog -1.00 #N/A Invalid Security 0.00 0.00 - Hail Cement 7.73 0.13 87,096 0.40 675,430 Abdullah Al Othaim Markets 64.70 3.35 95,262 Bank Sohar -2.29 #N/A Invalid Security 0.00 0.00 - Saudi Re For Cooperative Rei 6.90 0.73 500,104 0.13 730,796 Hail Cement 7.73 0.13 87,096 Bank Nizwa 0.00 Solidarity Saudi Takaful Co 16.14 1.51 137,449 0.09 305,300 Saudi Re For Cooperative Rei 6.90 0.73 500,104 Bank Dhofar Saog 0.16 -0.61 182,214 LATEST MARKET CLOSING FIGURES Gulf Times Tuesday, September 18, 2018 7 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 26,133.54 -21.13 Apple Inc 219.84 -1.79 14,577,699 S&P 500 Index 2,897.13 -7.85 Microsoft Corp 112.59 -0.69 7,295,173 Nasdaq Composite Index 7,945.58 -64.46 Exxon Mobil Corp 83.41 0.59 2,417,083 S&P/Tsx Composite Index 16,097.67 +84.18 Johnson & Johnson 140.05 0.40 1,559,026 Mexico Bolsa Index 49,551.64 -60.29 General Electric Co 12.82 1.12 16,920,781 Brazil Bovespa Stock Idx 76,003.58 +574.49 Jpmorgan Chase & Co 113.54 0.04 3,654,880 Ftse 100 Index 7,302.10 -1.94 Procter & Gamble Co/The 84.06 0.54 2,117,793 Cac 40 Index 5,348.87 -3.70 Walmart Inc 95.06 0.50 2,043,919 Dax Index 12,096.41 -27.92 Verizon Communications Inc 54.61 0.10 3,748,510 Ibex 35 Tr 9,404.60 +39.30 Pfizer Inc 43.05 0.21 4,683,802 Nikkei 225 23,094.67 +273.35 Visa Inc-Class A Shares 146.53 -0.89 1,955,147 Japan Topix 1,728.61 +18.59 Chevron Corp 117.77 0.33 1,386,270 Hang Seng Index 26,932.85 -353.56 Coca-Cola Co/The 46.08 0.20 3,045,206 All Ordinaries Indx 6,293.90 +17.55 Intel Corp 45.74 0.44 6,194,185 Nzx All Index 1,630.47 -0.05 Merck & Co. Inc. 70.20 0.32 1,697,569 Bse Sensex 30 Index 37,585.51 -505.13 Cisco Systems Inc 47.31 -0.20 4,518,104 Nse S&P Cnx Nifty Index 11,377.75 -137.45 Home Depot Inc 209.09 0.01 802,274 Straits Times Index 3,141.40 -20.02 Intl Business Machines Corp 148.11 -0.15 959,052 Karachi All Share Index 29,686.96 -278.86 Walt Disney Co/The 109.26 0.00 1,871,334 Jakarta Composite Index 5,824.26 -107.02 Unitedhealth Group Inc 265.15 -0.06 477,144 3M Co 210.02 1.03 573,599 Mcdonald’s Corp 158.56 -1.42 2,768,080 Nike Inc -Cl B 83.65 0.19 1,605,676 TOKYO United Technologies Corp 137.94 0.10 1,827,557 Boeing Co/The 358.37 -0.40 903,929 Company Name Lt Price % Chg Volume Goldman Sachs Group Inc 227.93 -0.57 664,944 Sumitomo Realty & Developmen 3,835.00 1.08 2,018,000 American Express Co 109.22 -0.31 831,646 Sumitomo Metal Mining Co Ltd 3,685.00 1.10 1,904,200 0.00 0.00 - Orix Corp 1,786.50 1.45 5,626,300 Caterpillar Inc 147.40 1.73 1,588,228 Daiwa Securities Group Inc 678.50 1.36 8,888,500 Travelers Cos Inc/The 130.25 0.18 276,650 Softbank Group Corp 10,945.00 -0.41 9,989,300 Mizuho Financial Group Inc 194.90 0.83 137,025,200 Central Japan Railway Co 22,265.00 -1.63 486,000 Traders work at the Frankfurt Stock Exchange. The DAX 30 was down 0.2% to 12,096.41 points yesterday. FTSE 100 Nitori Holdings Co Ltd 16,660.00 -1.39 440,500 T&D Holdings Inc 1,647.50 0.92 2,794,100 Company Name Lt Price % Chg Volume Toyota Motor Corp 6,848.00 0.96 7,650,200 Hoya Corp 6,590.00 2.97 2,013,200 Wpp Plc 1,148.00 2.09 2,897,177 Sumitomo Mitsui Trust Holdin 4,401.00 0.89 1,890,700 Worldpay Group Plc 0.00 0.00 - Japan Tobacco Inc 2,963.50 -0.82 6,238,500 Wolseley Plc 0.00 0.00 - Osaka Gas Co Ltd 2,082.00 -0.29 1,738,900 Wm Morrison Supermarkets 258.80 0.54 7,470,292 Sumitomo Electric Industries 1,714.50 1.99 2,932,500 Whitbread Plc 0.11 European markets wobble 4,690.00 415,499 Ono Pharmaceutical Co Ltd 2,947.50 0.02 2,168,500 Vodafone Group Plc 168.08 0.38 37,208,743 Ajinomoto Co Inc 1,880.00 -0.11 2,074,000 United Utilities Group Plc 706.60 0.91 1,515,102 Mitsui Fudosan Co Ltd 2,472.00 1.52 4,448,100 Unilever Plc 4,253.50 -0.21 1,907,809 Daikin Industries Ltd 14,985.00 1.90 1,551,300 Tui Ag-Di 1,376.00 -0.07 1,075,947 Toray Industries Inc 841.90 1.81 6,204,300 Travis Perkins Plc 1,115.00 -0.89 1,469,645 as trade war woes deepen Bridgestone Corp 4,149.00 1.72 4,350,000 Tesco Plc 235.10 0.34 17,007,851 Sony Corp 6,630.00 3.69 9,555,000 Taylor Wimpey Plc 170.40 0.18 6,930,722 Astellas Pharma Inc 1,898.00 0.32 10,473,200 Standard Life Plc 0.00 0.00 - gressive use of tariff s as a success for possible spillover from fi nancial crises in Jxtg Holdings Inc 772.00 1.94 14,533,900 AFP Standard Chartered Plc 608.00 -0.67 5,665,664 Nippon Steel & Sumitomo Meta 2,178.00 1.40 3,939,300 American business. Argentina, Turkey, and South Africa. St James’s Place Plc 1,097.50 -0.23 978,001 London Suzuki Motor Corp 6,895.00 -2.60 4,586,800 “The ongoing confl ict between the “Equities in emerging Asia have Sse Plc 1,122.50 3.55 4,722,132 Nippon Telegraph & Telephone 4,969.00 0.16 4,063,300 US and China continues to be a pri- been hit harder than those in the rest Smith & Nephew Plc 1,402.00 0.36 1,561,033 Sompo Holdings Inc 4,444.00 2.82 2,021,300 Sky Plc 1,573.00 -0.41 1,079,660 tock markets were uneasy and mary driver of market sentiment, with of the world today as last week’s small Daiwa House Industry Co Ltd 3,259.00 1.68 3,787,800 Shire Plc 4,468.50 -0.40 2,100,917 the dollar fell yesterday following investors concerned about the pros- recovery has come to a swift end. We Komatsu Ltd 3,111.00 2.00 6,563,100 Severn Trent Plc 1,900.00 0.85 479,768 reports that US President Donald pect of a full blown trade war as neither would not be surprised if they contin- West Japan Railway Co 7,494.00 -1.69 818,500 S Schroders Plc 3,009.00 0.10 136,763 Trump is planning to hit China with side shows a willingness to blink,” said ued to underperform,” Capital Eco- Murata Manufacturing Co Ltd 17,675.00 5.27 1,586,800 Sainsbury (J) Plc 321.70 0.16 3,657,451 Kansai Electric Power Co Inc 1,650.50 -2.02 3,167,300 another round of tariff s, dealing a blow Craig Erlam, senior market analyst at nomics analysts said in a note. Sage Group Plc/The 581.20 -0.79 1,587,238 Denso Corp 5,436.00 2.20 2,650,200 to hopes for conciliatory talks between Oanda trading group. Meanwhile, the pound held up as Abi Sab Group Holding Ltd 0.00 0.00 - Dai-Ichi Life Holdings Inc 2,120.00 1.02 4,456,400 the two economic giants. In Europe, London’s FTSE 100 was uncertainty over Brexit loomed large, Rsa Insurance Group Plc 612.00 0.56 1,477,447 Mazda Motor Corp 1,287.00 1.90 6,109,000 Royal Mail Plc 489.00 0.72 2,113,025 Traders had late last week welcomed fl at at 7,302.10, Frankfurt’s DAX 30 was with British Prime Minister Theresa Mitsui & Co Ltd 1,919.50 1.45 8,771,000 Royal Dutch Shell Plc-B Shs 2,514.50 0.26 3,735,685 US Treasury Secretary Steven Mnuch- down 0.2% at 12,096.41 and Paris’s May warning that her plan is the only Kao Corp 8,885.00 1.62 2,399,300 Royal Dutch Shell Plc-A Shs 2,473.00 0.14 4,608,560 in’s off er to meet offi cials from Beijing CAC 40 lost 0.1% to 5,348.87 points at alternative to crashing out of the Euro- Sekisui House Ltd 1,672.00 0.54 4,266,600 Royal Bank Of Scotland Group 250.00 1.58 15,622,772 pean Union without an agreement. Oriental Land Co Ltd 11,275.00 -0.75 837,900 to avert an all-out trade war. the close yesterday. Rolls-Royce Holdings Plc 982.80 0.16 2,592,552 Secom Co Ltd 9,101.00 -0.11 1,565,800 However, The Washington Post and Hong Kong’s stock market led losses May’s warning came as the Inter- Rio Tinto Plc 3,605.00 0.24 2,399,006 Tokio Marine Holdings Inc 5,193.00 2.28 3,393,900 Wall Street Journal said the president yesterday, while the main European in- national Monetary Fund warned that Rexam Ltd 0.00 0.00 - Aeon Co Ltd 2,541.00 -0.33 3,922,900 Britain’s economy would suff er “sub- Relx Plc 1,571.00 -1.26 6,721,447 had decided to impose 10% levies on dices were lukewarm. Fanuc Corp 21,690.00 2.80 1,913,100 Reckitt Benckiser Group Plc 6,750.00 1.05 1,326,538 $200bn of Chinese imports and could While investors are in a selling mood, stantial costs” should it depart the EU Daito Trust Construct Co Ltd 14,290.00 1.35 820,100 Randgold Resources Ltd 4,720.00 1.40 558,332 make an announcement in the coming some positives could be taken from re- in March with no divorce deal. Otsuka Holdings Co Ltd 5,289.00 -2.92 2,570,300 Prudential Plc 1,681.00 -1.44 4,273,620 days. ports that Trump was considering 10% Over on the oil markets, prices were Resona Holdings Inc 610.20 1.40 13,667,200 Provident Financial Plc 634.20 1.12 244,901 Asahi Kasei Corp 1,593.00 1.17 4,502,100 That would come on top of the tariff s instead of the feared 25%, said edging upwards as supply concerns Persimmon Plc 2,383.00 -0.17 915,543 Kirin Holdings Co Ltd 2,797.50 0.54 4,900,500 $50bn already announced over the JP Morgan Asset Management global rose over the US’ imminent return to Pearson Plc 838.80 0.17 2,733,018 Mitsubishi Ufj Financial Gro 680.60 0.98 76,002,600 summer and would account for about market strategist Kerry Craig. sanctions on Iran’s oil industry. Paddy Power Betfair Plc 6,850.00 -1.01 141,997 Marubeni Corp 956.80 1.60 8,624,700 Old Mutual Plc 0.00 0.00 - half of China’s exports to the United “Timing is also important when it “Oil prices remain better bid as the Mitsubishi Chemical Holdings 993.00 2.61 8,148,700 Next Plc 5,372.00 0.41 318,190 States. comes to enacting any new tariff s. A market focuses on the potential impact Fast Retailing Co Ltd 58,090.00 2.15 1,498,200 National Grid Plc 797.00 0.72 7,568,923 Beijing has threatened to retaliate staggered implementation is being of US sanctions on Iran despite prom- Ms&Ad Insurance Group Holdin 3,423.00 3.16 3,107,400 Mondi Plc 2,128.00 -0.23 1,062,308 against any measures. Reports suggest viewed as the best of a bad situation,” ises by Washington that the Saudis, Kubota Corp 1,790.00 3.32 5,067,900 Merlin Entertainment 390.90 1.03 1,851,770 Seven & I Holdings Co Ltd 4,980.00 1.45 4,162,700 China would call off any meetings if Craig added. Russia and the US could together raise Mediclinic International Plc 462.20 -0.64 1,086,655 Inpex Corp 1,320.50 0.49 7,183,100 the new duties take eff ect. Elsewhere on foreign exchange yes- output fast enough to off set falling Marks & Spencer Group Plc 284.80 0.07 8,228,920 Sumitomo Mitsui Financial Gr 4,397.00 0.89 6,466,300 Fanning the fl ames of the trade con- terday, emerging market currencies con- supplies,” wrote Dean Popplewell, vice London Stock Exchange Group 4,751.00 -0.81 612,850 Ana Holdings Inc 3,819.00 0.37 1,675,300 Lloyds Banking Group Plc 59.29 0.70 134,556,893 fl ict, Trump yesterday hailed his ag- tinue to struggle as investors fret over a president of market analysis at Oanda. Mitsubishi Electric Corp 1,472.00 2.58 10,420,200 Legal & General Group Plc 252.60 -0.32 7,811,632 Honda Motor Co Ltd 3,217.00 1.23 6,734,300 Land Securities Group Plc 888.00 0.06 1,083,871 Tokyo Gas Co Ltd 2,704.00 1.01 2,265,800 Kingfisher Plc 266.00 1.37 5,790,019 HONG KONG HONG KONG Tokyo Electron Ltd 16,290.00 1.56 2,641,300 Johnson Matthey Plc 3,510.00 0.34 376,256 Panasonic Corp 1,281.00 1.59 9,399,700 Itv Plc 158.00 -1.13 13,631,074 Fujitsu Ltd 794.00 0.46 9,580,000 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intu Properties Plc 153.50 0.13 2,067,179 East Japan Railway Co 10,215.00 -1.30 1,328,200 Intl Consolidated Airline-Di 685.60 0.38 2,754,646 Aluminum Corp Of China Ltd-H 3.23 -1.22 8,298,000 Hong Kong & China Gas 15.78 -0.75 4,817,261 Itochu Corp 2,013.00 1.46 6,409,300 Intertek Group Plc 4,852.00 -0.88 235,576 Bank Of East Asia Ltd 29.00 -0.17 927,369 Hong Kong Exchanges & Clear 217.80 -1.45 3,770,928 Fujifilm Holdings Corp 4,940.00 4.62 3,585,900 Intercontinental Hotels Grou 4,633.00 -1.34 377,045 Bank Of China Ltd-H 3.39 -0.59 181,671,619 Hsbc Holdings Plc 67.55 -0.52 12,055,845 Yamato Holdings Co Ltd 3,286.00 -1.88 2,036,400 Inmarsat Plc 495.00 0.18 3,598,968 Bank Of Communications Co-H 5.63 -0.88 13,214,824 Hutchison Whampoa Ltd 0.00 0.00 - Chubu Electric Power Co Inc 1,654.50 -0.69 2,200,100 Informa Plc 733.00 -0.22 2,741,940 Belle International Holdings 0.00 0.00 - Ind & Comm Bk Of China-H 5.42 -1.28 173,772,691 Mitsubishi Estate Co Ltd 1,809.00 1.03 4,945,500 Imperial Brands Plc 2,625.50 0.31 1,334,285 Boc Hong Kong Holdings Ltd 35.60 -2.60 6,108,736 Li & Fung Ltd 1.95 -2.50 18,878,254 Mitsubishi Heavy Industries 4,069.00 0.37 1,371,700 Hsbc Holdings Plc 655.40 -0.46 12,404,683 Cathay Pacific Airways 11.06 -1.78 2,754,377 Mtr Corp 41.80 0.24 4,763,016 Shiseido Co Ltd 7,598.00 -1.86 3,548,700 Hargreaves Lansdown Plc 2,224.00 0.86 735,343 Ck Hutchison Holdings Ltd 91.05 -0.11 2,995,017 New World Development 10.04 -1.18 7,535,622 Shionogi & Co Ltd 6,846.00 1.68 2,173,500 Hammerson Plc 459.00 -0.22 1,619,074 China Coal Energy Co-H 3.13 -1.26 4,773,753 Petrochina Co Ltd-H 6.00 0.50 125,377,557 Recruit Holdings Co Ltd 3,540.00 1.14 7,942,900 Glencore Plc 300.35 -0.40 80,848,428 China Construction Bank-H 6.51 -1.51 164,047,822 Ping An Insurance Group Co-H 74.55 -0.80 22,939,673 Japan Airlines Co Ltd 3,980.00 -0.50 1,865,400 Glaxosmithkline Plc 1,487.60 0.23 6,398,021 China Life Insurance Co-H 16.90 -0.24 34,997,041 Power Assets Holdings Ltd 56.30 -0.88 1,804,877 Nitto Denko Corp 8,177.00 3.93 1,530,000 Gkn Plc 0.00 0.00 - China Merchants Port Holding 14.92 -2.36 2,390,062 Sino Land Co 13.44 0.75 3,270,324 Kddi Corp 3,045.00 -0.49 9,767,300 Fresnillo Plc 788.20 0.38 1,251,933 China Mobile Ltd 76.05 -1.11 14,948,506 Sun Hung Kai Properties 116.20 -0.85 3,869,421 Rakuten Inc 823.90 1.18 6,371,400 Experian Plc 1,920.50 -1.26 1,259,010 China Overseas Land & Invest 23.75 -1.66 5,379,402 Swire Pacific Ltd - Cl A 86.45 -1.31 840,621 Kyocera Corp 6,506.00 -0.29 4,257,000 Easyjet Plc 1,438.50 1.23 1,036,377 China Petroleum & Chemical-H 7.56 0.27 87,107,700 Tencent Holdings Ltd 319.20 -3.27 18,863,537 Nissan Motor Co Ltd 1,060.00 1.39 15,909,200 Dixons Carphone Plc 162.10 0.22 3,078,575 China Resources Beer Holding 29.95 -1.16 4,168,009 Wharf Holdings Ltd 21.55 -1.37 2,731,676 Direct Line Insurance Group 321.70 -0.40 2,946,917 China Resources Land Ltd 26.65 -2.91 6,132,743 China Resources Power Holdin 13.42 -0.30 4,117,493 Diageo Plc 2,645.00 -0.95 3,608,017 SENSEX Dcc Plc 7,135.00 0.28 143,487 China Shenhua Energy Co-H 16.44 -2.95 17,918,163 GCC INDICES Crh Plc 2,445.00 0.62 1,719,126 China Unicom Hong Kong Ltd 9.32 -1.89 13,940,562 Compass Group Plc 1,641.50 0.46 1,868,534 Company Name Lt Price % Chg Volume Citic Ltd 11.08 -1.25 5,093,706 Indices Lt Price Change Coca-Cola Hbc Ag-Di 2,567.00 -1.19 406,031 Clp Holdings Ltd 94.35 -0.89 2,053,570 Doha Securities Market Zee Entertainment Enterprise 475.25 0.68 2,363,697 9,832.68 -109.35 Centrica Plc 145.45 1.50 17,760,109 Cnooc Ltd 14.50 -0.82 59,698,077 Saudi Tadawul Yes Bank Ltd 318.60 -1.39 19,706,277 7,609.65 +139.84 Carnival Plc 4,815.00 2.36 732,207 Cosco Shipping Ports Ltd 7.42 -2.50 1,816,422 Kuwait Stocks Exchange Wipro Ltd 329.90 -0.09 4,883,651 #N/A N/A #N/A N/A Capita Plc 145.00 0.28 3,545,647 Esprit Holdings Ltd 1.72 -3.37 1,811,085 Bahrain Stock Exchage Vedanta Ltd 234.90 -0.30 13,795,905 1,338.98 -2.23 Burberry Group Plc 2,109.00 -2.04 1,625,507 Fih Mobile Ltd 0.99 -1.98 1,611,000 Oman Stock Market Ultratech Cement Ltd 4,103.50 -2.04 216,436 4,515.94 -47.26 Bunzl Plc 2,412.00 -0.58 577,237 Hang Lung Properties Ltd 15.04 -1.31 2,883,913 Abudhabi Stock Market Tech Mahindra Ltd 767.55 0.93 2,345,771 4,882.85 -82.90 Bt Group Plc 228.80 1.24 15,654,965 Hang Seng Bank Ltd 207.00 -0.58 733,918 Dubai Financial Market Tata Steel Ltd 616.40 0.23 7,819,670 2,752.13 -21.96 British Land Co Plc 615.80 0.06 2,066,001 Henderson Land Development 39.85 -1.60 2,602,861 Tata Power Co Ltd 77.90 2.23 5,618,932 British American Tobacco Plc 3,669.00 0.26 2,166,958 Tata Motors Ltd 260.25 -2.38 10,145,873 Bp Plc 548.70 -0.31 18,790,401 Tata Consultancy Svcs Ltd 2,074.15 0.42 1,083,326 Bhp Billiton Plc 1,533.00 0.17 4,712,461 Sun Pharmaceutical Indus 646.20 -2.86 6,915,940 Berkeley Group Holdings/The 3,627.00 0.44 365,359 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 285.30 -1.84 17,126,469 Barratt Developments Plc 559.20 0.50 3,230,676 Reliance Industries Ltd 1,225.90 -2.17 7,126,036 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Barclays Plc 171.14 0.04 30,582,173 Punjab National Bank 83.00 0.24 28,140,141 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Bae Systems Plc 627.60 0.26 5,645,301 Power Grid Corp Of India Ltd 201.90 0.87 8,677,999 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Babcock Intl Group Plc 696.60 0.26 1,635,312 Oil & Natural Gas Corp Ltd 171.70 -0.49 4,229,328 this data.” Aviva Plc 478.00 0.13 8,820,529 Ntpc Ltd 172.25 -1.54 2,401,396 Astrazeneca Plc 5,622.00 -0.41 1,403,327 Maruti Suzuki India Ltd 8,537.80 -1.03 456,472 Associated British Foods Plc 2,263.00 1.21 670,940 Mahindra & Mahindra Ltd 950.85 -0.11 2,127,448 Ashtead Group Plc 2,340.00 -2.26 1,275,947 Lupin Ltd 950.20 -1.91 2,752,476 CURRENCIES Arm Holdings Plc 0.00 0.00 - Larsen & Toubro Ltd 1,344.75 -1.04 996,581 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Antofagasta Plc 777.00 -0.97 2,454,606 DINAR DINAR Kotak Mahindra Bank Ltd 1,230.40 -0.74 1,899,017 Anglo American Plc 1,546.40 0.09 3,120,971 Itc Ltd 302.00 -1.68 6,231,433 Admiral Group Plc 2,035.00 0.79 550,494 Infosys Ltd 725.95 -1.06 5,719,318 3I Group Plc 933.80 0.43 1,550,239 Indusind Bank Ltd 1,877.05 0.23 1,024,819 #N/A 0.00 0.00 - Idea Cellular Ltd 47.70 2.91 21,937,249 Icici Bank Ltd 325.70 -0.81 7,726,063 TOKYO Housing Development Finance 1,878.85 -2.42 2,228,192 Hindustan Unilever Ltd 1,605.45 -1.46 1,005,607 Hindalco Industries Ltd 241.35 -1.67 10,209,155 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 3,127.90 -1.84 281,373 Hitachi Ltd 732.40 1.93 25,031,000 Hdfc Bank Limited 1,992.20 -1.84 2,414,097 Takeda Pharmaceutical Co Ltd 4,685.00 0.71 5,236,600 Hcl Technologies Ltd 1,078.40 0.72 1,754,819 Jfe Holdings Inc 2,348.50 0.79 2,746,100 Grasim Industries Ltd 1,065.20 0.14 766,541 Sumitomo Corp 1,812.50 1.09 5,888,100 Gail India Ltd 372.55 0.70 3,847,082 Canon Inc 3,459.00 1.56 5,628,100 Dr. Reddy’s Laboratories 2,568.50 -0.52 733,305 Nintendo Co Ltd 38,130.00 -1.57 2,065,900 Coal India Ltd 274.95 -0.87 3,011,650 Eisai Co Ltd 10,330.00 -1.57 1,601,700 Cipla Ltd 664.90 -0.23 2,356,989 Isuzu Motors Ltd 1,657.50 1.35 3,070,200 Cairn India Ltd 0.00 0.00 - Unicharm Corp 3,742.00 0.11 1,973,700 Bosch Ltd 20,986.10 -0.38 43,082 Shin-Etsu Chemical Co Ltd 9,582.00 3.35 2,530,800 Bharti Airtel Ltd 382.05 -0.40 3,341,137 Smc Corp 34,600.00 4.03 489,700 Bharat Petroleum Corp Ltd 364.00 2.68 9,390,333 Mitsubishi Corp 3,292.00 1.92 8,235,600 Bharat Heavy Electricals 76.15 -1.17 4,229,235 Asahi Group Holdings Ltd 4,901.00 1.16 2,062,200 Bank Of Baroda 135.25 0.63 20,134,459 Keyence Corp 62,010.00 5.14 594,600 Bajaj Auto Ltd 2,860.65 -0.59 148,826 Nidec Corp 16,050.00 3.65 1,172,900 Axis Bank Ltd 625.95 -1.64 7,158,304 Nomura Holdings Inc 522.60 1.40 18,733,900 Asian Paints Ltd 1,308.65 -1.89 1,026,836 Daiichi Sankyo Co Ltd 4,567.00 -0.41 2,836,800 Ambuja Cements Ltd 225.90 -1.70 1,919,780 Subaru Corp 3,165.00 2.00 4,145,700 Adani Ports And Special Econ 380.80 0.18 1,575,508 Ntt Docomo Inc 2,959.50 -0.07 4,562,300 Acc Ltd 1,586.75 -0.97 631,577 Gulf Times Tuesday, September 18, 2018 13 BUSINESS

‘Flipkart India to merge three govt eyes stake in Star’s banks to tackle bad loans Hotstar’ Reuters Bengaluru Govt plans to merge Bank of Baroda, Dena Bank, Vijaya Bank; merged bank to be India’s almart Inc’s Flipkart third-largest with assets of $204bn; unit is in talks to buy India has non-performing bank Wa stake in Star India’s loans of more than $150bn video streaming service Hotstar, the Mint daily reported yester- Reuters day, stepping up the e-com- New Delhi merce fi rm’s battle with Ama- zon.com Inc by expanding into video content. ndia plans to merge state-run Bank Flipkart’s reported talks with of Baroda, Dena Bank and Vijaya Hotstar come at a time when IBank, the fi nancial services secre- there is high demand in the tary said yesterday, as part of eff orts to country for video streaming tackle a pile of bad loans plaguing the services like Netfl ix and Amazon banking sector and revive credit growth. Prime Video, which off er origi- The government will continue to nal content shows like Sacred provide capital support to the merged Games and Breathe. bank, which is expected to be India’s Hotstar, owned by Twenty- third largest with assets of Rs14.82tn First Century Fox’s Star India ($204bn), Rajeev Kumar told reporters. unit, launched in India in 2015 “It is a major economic, commercial – about a year ahead of stream- decision,” fi nance minister Arun Jaitley ing giant Netfl ix and nearly two added. years ahead of Amazon Prime Banking sector reforms are a major Video debut in the country – plank of Prime Minister Narendra Mo- remains well ahead of both in di’s administration to revive lending, terms of its popularity with do- which has slowed to multi-decade lows mestic users. as banks struggle with bad loans. Hotstar has been off ering pre- The government owns majority mium content like HBO’s Game stakes in 21 lenders, which account for of Thrones and live-streaming of more than two-thirds of banking assets popular Indian Premier League in Asia’s third-biggest economy. cricket for an annual subscrip- But these banks also account for the tion of Rs999 ($13.90). lion’s share of more than $150bn in bad A Hotstar representative de- debt which is weighing on the sector, nied any such talks with Flip- and need billions of dollars in new capi- kart, but said it was open to tal in the next two years to meet global partnerships that can help grow Basel III capital regulations. the Internet ecosystem in India India’s decision to merge the three and beyond. banks will first need to be approved by Flipkart was not immediately each of their board of directors, Jait- available for comment. ley said, adding that the government Flipkart has already tied up will then prepare an amalgamation with Hotstar to launch a video scheme. advertisement platform in July. This would need the approval of the Hotstar is also one of the In- cabinet of ministers and the houses of ternet partners for Flipkart Plus, parliament – a process he expects to be its customer loyalty programme completed by the end of March 2019. competing with Amazon Prime. The new bank is expected to have a India plans to merge state-run Bank of Baroda, Dena Bank and Vijaya Bank, the financial services secretary Rajeev Kumar said yesterday, as part of eff orts to tackle a pile Walmart acquired about 77% net non-performing asset ratio of 5.71% of bad loans plaguing the banking sector and revive credit growth. The government will continue to provide capital support to the merged bank, which is expected to be of Flipkart for nearly $16bn in of its total assets, nearly 9,500 bank India’s third largest with assets of Rs14.82tn ($204bn), Kumar said. what was the US retail giant’s branches and 85,675 employees. largest-ever deal and a move to “Merging the three banks will give the synergies will be,” he said. The pro- eries and restructurings, and in Febru- speed up consolidation of other state- Anand Rathi. In the short-term, how- take on arch rival Amazon in a the new entity benefi ts of economies of posed merger is the latest in a series of ary 2017 approved the merger of State run banks. “Over time, this (merger) ever, there could be an impact on the key growth market. scale and distribution,” said Sunil Shar- measures introduced by the govern- Bank of India (SBI) with its fi ve subsidi- will strengthen the global positioning share price of state-run banks as few Flipkart, along with its fash- ma, chief investment offi cer at Sanctum ment to quickly cut the pile of bad loans ary banks, helping the country’s largest of Indian banks, but there will be a con- would be ready to take long term bets ion units Myntra and Jabong, is Wealth Management. in the banking sector. lender by assets cut expenses. siderable transition period for this,” said on them, said Asutosh Mishra, banking slightly ahead of Amazon in In- “But a lot will depend on the man- India introduced a new insolvency In August last year it also approved Sujan Hajra, chief economist and head sector analyst at Mumbai-based Reli- dia’s online retail, according to agement of the larger entity and what process in 2016 to speed up debt recov- the creation of a ministerial panel to of research at Mumbai-based broker ance Securities. Forrester estimates.

Infosys invests Noble’s future owners pledge ‘conservative’ accounting

$1.5mn Bloomberg over the past 12 months conservatively won shareholder backing for the plan, senior creditors, 10% to management counts weren’t rigorous enough. As Singapore recalibrated asset valuations,” the ad and it’s said more than 85% of senior and the rest to existing stockholders. part of their review, “the AHG and its hoc group of creditors said in the letter, creditors are in support. Completion of The debt burden will be halved. fi nancial advisers conducted a fi nancial more in dated September 13. Singapore-listed the overhaul will likely bring fresh scru- After asset sales, Noble has shrunk and business diligence exercise giving he new owners of Noble Group Noble Group last year alone wrote down tiny on whether the slimmed-down back to its roots and it’s now focused on specifi c attention to matters raised by US firm Ltd pledged a “conservative ap- $1.6bn in fair-value gains. company can both turn a profi t and coal, LNG and freight. public critics,” Swanson’s letter said. Tproach” to the commodity trad- By addressing the “historical ac- service its reduced debt burden while Iceberg Research – led by a former “The new board will conduct a compre- TidalScale er’s accounting, including a special fo- counting issues” at Noble, the future also moving on from the claims of im- employee, Arnaud Vagner – has said the hensive review of corporate accounting cus on the practices blamed for infl ating owners are seeking to draw a line under propriety that marked its implosion. debt-for-equity proposal won’t revive and risk-management policies as part its balance sheet and causing billions of the controversy that’s surrounded the The ad hoc group “believes that the the trader’s fortunes and has criticised of its commitment to best practice gov- IANS dollars in writedowns. trader’s bookkeeping since it was fi rst current management team, coupled Noble’s management and accounting, ernance arrangements.” Bengaluru The creditors that will own the ma- attacked by Iceberg three years ago. with a new governance structure, is including claims profi ts were over- Noble Group is in the process of jority of the company said Noble will They said they’ll place their faith in well-positioned to execute on the pro- stated. In response, Noble Group has fi nding a new chairman to replace in- take a “conservative approach to non- existing management to turn the com- posed turnaround,” the creditors group consistently stood by its accounts and cumbent Paul Brough, and has said the Software major Infosys cash accruals specifi cally and account- pany around. In a separate statement said in the letter, which was signed by defended its actions. The ad hoc group successful candidate will come from yesterday said it invested an ing generally,” according to a letter yesterday, Noble said it will launch the Joseph Swanson, senior managing di- said members had weighed up the mer- outside the company. In their letter, the additional $1.5mn (Rs109mn) in made public by the company yesterday. schemes of arrangement for the rescue rector at Houlihan Lokey Inc, a fi nancial its of winding down the business or AHG said there’d been good progress on the US-based TidalScale, dou- It was the technique of booking pa- plan in London and Bermuda courts by adviser to the group. selling the trader to a strategic investor, drawing up the new board, including a bling it to $3mn in the software per gains on some long-term contracts, September 21. Candidates for the new board “must but both options were rejected in favor slate of independent directors. In an in- services firm. despite the fact they wouldn’t generate After years of crisis, losses and de- be committed to international best of keeping Noble together as a rejuve- dicative outline released in March, No- “The additional investment any cash for years, that was attacked by faulting, Noble Group has been putting practices and the highest levels of ethi- nated standalone business. ble had aimed for the rescue to be done of $1.5mn is made through our Iceberg Research in 2015, triggering the in place the fi nal elements of the res- cal comportment.” In reaching that decision, the group by July but that timeline slipped after it innovation fund in TidalScale implosion of the once-giant trader. cue, which will see control handed to Under Noble’s revamp, 70% of the checked out the claims against Noble faced opposition from some sharehold- Inc, which is spearheading the “The balance sheet write-downs the senior creditors. Last month, Noble equity in a new company will go to the Group, including suggestions its ac- ers and it revised the terms. software-defined server revolu- tion,” said the city-based IT major in a statement here. Infosys invested $1.5mn in the California headquartered China to speed up efforts to cut solar, wind subsidies firm in 2016. TidalScale’s servers deliver in-memory performance at any scale, are self-optimising, Reuters Administration (NEA) dated September major corporations in China. “I don’t use standard hardware and are Shanghai 13 to the industry and reviewed by Reu- think there will be a specific magical compatible with all applications ters. The guidelines said some regions date when (parity) is here for all loca- and operating systems. with cost and market advantages had tions,” he said. “It will gradually spread The servers also enable or- China will speed up eff orts to ensure already “basically achieved price par- over time as eff iciencies continue to ganisations to create systems of its wind and solar power sectors can ity” with clean coal-fired power and no improve and prices become more any size, using the commodity compete without subsidies and achieve longer required subsidies, and others competitive.” servers they have while requir- “grid price parity” with traditional en- should learn from their experiences. China’s solar sector is still reeling ing no software changes. ergy sources like coal, according to new They also urged local transmis- from a decision to cut subsidies and The US firm transforms the draft guidelines issued by the energy sion grid companies to provide more cap new capacity at 30 gigawatts (GW) economics and time constraints regulator. support for subsidy-free projects and this year, down from a record 53 GW in of working with big data. As it tries to ease its dependence ensure they have the capacity to dis- 2017, with the government concerned “TidalScale’s servers ad- on polluting fossil fuels, China has tribute all the power generated by wind about overcapacity and a growing dress a key challenge many encouraged renewable manufacturers and solar plants. subsidy backlog. enterprises face – to increase and developers to drive down costs The draft guidelines were issued for According to the NEA, the gov- the return on investments made through technological innovations and feedback from the industry and it is un- ernment owed around 120bn yuan in technology infrastructure economies of scale. clear when they will come into eff ect. ($17.46bn) in subsidies to solar plants assets,” said Infosys vice- The country aims to phase out Solar power generation costs fell by the middle of this year. president Deepak Padaki on the power generation subsidies, which 90% from 2007 to 2017, and GCL New Lapham said the cap on new occasion. have become an increasing burden Energy Holdings, one of China’s biggest projects has hurt the industry in the “Our customers are discover- on the state. clean energy developers, said in late short term, but by making a compo- ing that they don’t have to buy China’s regions will make an extra August that grid price parity could hap- nent supply glut even worse, it has also new hardware or rewriting push to provide technological and pen within a year. reduced prices and brought China even code so their workloads can run policy support to the renewables sec- “Parity is here already for high closer to grid price parity. across clusters,” said Smerdon. tor in order to ensure they can operate price markets,” said Thomas Lapham, “The silver lining may be that we are China will speed up eff orts to ensure its wind and solar power sectors can compete The investment will be made subsidy-free, according to draft guide- chief executive of Asia Clean Capital, on more stable ground for 2019 and be- without subsidies and achieve “grid price parity” with traditional energy sources like by September 28. lines issued by the National Energy which builds rooftop solar projects for yond, even without subsidies,” he said. coal, according to new draft guidelines issued by the energy regulator. Gulf Times 14 Tuesday, September 18, 2018 BUSINESS

Pakistan raises gas RBI’s lethargic move on rupee prices to trim subsidies puts rate increase on agenda amid Bloomberg budget woes Mumbai

Reuters ndia’s measures to shore up the ru- Islamabad pee have fallen short, probably leav- Iing the central bank with little op- tion but to raise interest rates perhaps Pakistan yesterday increased as early as next month. natural gas prices by up to The rupee fell to near record lows, 20%, Petroleum Minister shares dropped and bond yields moved Chaudhry Mohammad higher yesterday, indicating inves- Sarwar said, in eff ect slashing tors were not impressed by the slew consumer subsidies that of measures announced late Friday by were a fiscal drag on the Finance Minister Arun Jaitley that in- government’s budget. cluded facilitation of bond issuance by Sarwar said the move would local companies and possible curbs on help ease part of the Rs152bn imports. ($1.24bn) deficit for state- The measures seek to increase foreign owned Sui Northern and capital infl ows by making it easier for Sui Southern, the two main local manufacturing companies to bor- suppliers of natural gas row money overseas as well as relaxing that are bleeding cash and restrictions on investments into corpo- subsidising consumers and rate bonds, thus signalling India is open industries. to foreigners. The decision was taken by Authorities believe that these meas- the Economic Coordination ures are likely to bring in $8bn to $10bn Committee chaired by new over time. Prime Minister Imran Khan, But they are unlikely to spur a signifi - who has vowed radical cant shift in foreign infl ows immedi- economic reforms. ately, especially at a time when elevated “It was a tough decision oil prices, a sell-off in emerging markets for us to take,” Sarwar said, and a widening of the current-account adding that the price hike defi cit show little signs of abating, was “10% to 20%”, depending economists say. on how much gas the user While gains in consumer prices eased consumed. in August, the outlook remains clouded The new measures would given the weak rupee and costly oil and inject “Rs58bn to stabilise will put the onus on the infl ation-tar- the two companies”, Sarwar geting Reserve Bank of India to do more. added. The RBI’s six-member monetary pol- The price hike is some icy committee, which has raised rates Reserve Bank of India signage is displayed at the entrance to the bank’s headquarters in Mumbai. The RBI’s six-member monetary policy committee, which has raised way off the 46% rise twice since June, will announce its next rates twice since June, will announce its next rate decision on October 5. recommended by Pakistan’s rate decision on October 5. regulator, which is roughly Upasna Bhardwaj, an economist with demand off -market. Swap traders are nounced Friday would help plugging the That suggests he would want to and causing an upheaval in Asia. “Given the increase needed if the Kotak Mahindra Bank Ltd in Mumbai, pricing in 100 basis points of rate hikes current-account gap over a longer period, shield India from the sell-off sweep- that the widening in the current-ac- gas providers were to break expects more measures from the RBI in in the coming 12 months, despite Au- it is not enough to attract capital needed ing emerging markets and the measures count defi cit has both a cyclical and a even and de facto subsidies coming months. gust’s subdued infl ation report. to overcome a balance of payments defi - could include front-loading rate hikes structural element to it, authorities will be terminated. “We are expecting a 25 basis-point That highlights growing nervousness cit of more than $20bn that some econo- to shore up sentiment toward the rupee. have to address both,” Pranjul Bhandari, Such price rises are politically rate hike in October,” she said, add- about India’s stretched external fi nanc- mists are estimating for this year. Jaitley told reporters on Monday that chief India economist at HSBC Hold- sensitive in Pakistan, which ing the RBI could also aggressively in- es at a time when the current-account That shortfall is mainly due to drying India was grappling with higher oil ings Plc, said and added that HSBC ex- has enjoyed decades of tervene in currency markets as well as gap has widened to a fi ve-year high and up of capital infl ows, prompting gover- prices, tighter US monetary policy and pects the RBI to raise policy rates by 50 cheap gas due to its natural open a swap window for oil marketing imports outpace exports. nor Urjit Patel to fl ag the need to main- a fi rmer dollar along with the threat of basis points in the fourth quarter, taking resources. companies to help them meet dollar While some of the measures an- tain economic stability. trade wars, which was impacting China the repurchase rate to 7%. However, over the past decade those gas reserves have not been enough and Pakistan experienced a number of shortages until China calls for borderless research to boost AI development it began importing liquefied natural gas (LNG), which is more expensive than Bloomberg borderless approach to AI research. be inclusive and support each other Yagnik showed off slides of the com- Chinese research centres as proof that domestic gas. Beijing He called for foreign investment in the so that we can respond to the dou- pany’s AI activities in the country. the country needed a global approach Sarwar said Pakistani country and pledged to foster “an en- ble-edged sword eff ect of new tech- The search giant, a unit of Alphabet to AI. consumers would be given vironment of free thinking” to support nologies,” He told attendees through Inc, is a key sponsor of the event. Jack Ma, the chairman of Alibaba relief via a reduction in most little more than a year ago, Chi- development. a translator. “AI represents a new era. Google chief executive offi cer Sun- Group Holding Ltd, said China’s rules, taxes on LNG, except a 10% na released an aggressive plan to The tone struck by He is a far cry Cross-national and cross-discipline dar Pichai was invited to the confer- systems and way of thinking needs to sales tax. A become the world’s leading ar- from the aggressive plan issued by the cooperation is inevitable.” ence but declined to attend. be reformed, including how its indus- Pakistan is struggling to tifi cial intelligence player. State Council last year with the aim of The comments echoed those of The company’s Beijing research tries and regulators adapt to technol- avert a currency crisis that But with its technological depend- China becoming the world leader in AI President Xi Jinping, who said in a let- centre and its plans to release search ogy. could force it to seek a ence on the US laid bare, it’s now pro- by 2030, in part through government ter to the conference that China was products in China that conform to the “Governments should not care bailout from the International moting a softer approach, calling for support. willing to share the benefi ts of AI with country’s censorship laws have faced whether the taxi industry should be Monetary Fund. all nations to join hands to develop the While He’s comments contained few other countries. a strong backlash from US lawmakers. substituted,” Alibaba’s Ma said. “Gov- The country’s current- technology. specifi cs, the softer approach comes The summit was used by several US Some of the most strident com- ernments should pay attention to account deficit has ballooned Chinese leaders, including Vice Pre- after Shenzhen-based ZTE Corp was companies to show off their dedication ments at the summit came from lead- whether road safety is good and if peo- in recent years, while the mier Liu He, joined business mogul crippled by US penalties and as trade to developing AI in China. ers of China’s two biggest technology ple will be killed in traffi c accidents. fiscal deficit has shot up to Jack Ma and executives from Google tensions between the nations build. Microsoft Research Asia and Ama- companies. Whether one industry is substituted 6.8% of the economy in the at the World Artifi cial Intelligence “We’re hoping that all countries, zon Web Services both announced new Ma Huateng, chairman of Tencent by another should be determined by year that ended June 30. Conference in Shanghai to support a as members of the global village, will labs in Shanghai, while Google’s Jay Holdings Ltd, cited Google’s launch of the market.”

36.6MW power project completed in Pakistan’s Swat China’s Meituan locked in battle of super-apps Internews Peshwar Reuters and “special prices” on home delivered Beijing/Shanghai crabs. Meituan’s take-away platform has similar deals. The Khyber Pakhtunkhwa “The question will be, when you stop provincial government has eituan Dianping, which raised subsidising these items, how many claimed to have achieved $4.2bn in its Hong Kong IPO, people can aff ord it?” Jane Sun, chief another target in the energy Mis one of China’s super-apps, executive of Chinese online travel plat- sector by successfully complet- with 340mn users ordering groceries, form Ctrip, told Reuters in an interview ing Daral Khwar hydropower paying bills, renting bikes and booking in Beijing. “That’s the challenge for any project having generation hotels – but it is far from alone. company who is using cash rebates to capacity of 36.6MW. The delivery-to-ticketing platform, gain customers.” The power project has been backed by Internet giant Tencent Hold- Launched in 2010 in Beijing, Meituan completed by the province on ings Ltd, is squaring off with Alibaba initially was a Chinese Groupon clone, its own. According to a state- Group Holding Ltd-backed rivals in- off ering discounts and group buying. ment issued yesterday, Daral cluding Alipay, Ele.me and Koubei as It was founded by Wang Xing, who Khwar hydropower project had well as Tencent’s own WeChat. left graduate school at the University of been connected to national This battle of the super apps – which Delaware to start businesses in China. grid after starting of power off er users a plethora of disparate Before Meituan, Wang set up Xiaonei. generation. services – creates a challenge for the com and Fanfou, Chinese equivalents of The power project will earn company ahead of its public fl oat this Facebook and Twitter. Rs1.2bn annually for the provin- month. Xiaonei was sold, while Chinese reg- cial exchequer. On Thursday it set an aggressive val- Management team of China’s Meituan Dianping, an online food delivery-to-ticketing services platform, attend a news conference ulators eventually blocked Fanfou over Pakhtunkhwa Energy De- uation of $52.8bn. on its IPO in Hong Kong. Meituan, like many of China’s fast-growing tech firms, has had to burn cash to keep ahead of rivals, both sensitive content. velopment Organisation chief To justify its price tag, Meituan will to subsidise shoppers and add new services. It bought bike-sharing firm Mobike for $2.7bn this year, an expensive acquisition In 2015 Meituan completed a $15bn executive off icer Engr Syed need to lure in cost-conscious consum- that is straining its margins. merger with rival Dianping, akin to US Zainullah Shah said that the ers like Wu Lingli, 22, a student in Wuxi. online review fi rm Yelp Inc. power project, which is located “Generally it’s all about price,” said es. It bought bike-sharing fi rm Mobike WeChat also off ers shopping, ticket- “The reasoning is simple: the position Meituan Dianping’s ambitions now in Behrain area of Swat district, Wu, who jumps between Meituan and for $2.7bn this year, an expensive acqui- ing and food delivery, while Meituan’s that Meituan has in food and amuse- rely heavily on food, which accounted would generate 154GWh of rivals Ele.me, Didi, Taobao and others sition that is straining its margins. push into hotel booking and ride shar- ment services is similar to Alibaba in for 62% of the company’s revenue last electricity annually which will when shopping online. “If the product Its wide variety of services has at- ing has pitted it against fi rms like Ctrip e-commerce, but even more solid,” Li year, according to its prospectus. earn Rs1.2bn for the province. is the same then I’m defi nitely just look- tracted users, but crimped profi ts. and Didi Chuxing, both dominant in added. “The market is big enough.” “We believe eating is the basic need He further stated that the ing at price; I’ll go wherever is cheaper.” The company lost 22.8bn yuan their fi elds. The battle for that market is playing for everybody, and also the most fre- power project was generat- The company is coming to market as ($3.33bn) in the fi rst third of this year, Meituan Dianping sees room for out on China’s streets, with Meituan’s quent need as everybody needs three ing cheapest clean source of China’s tech sector faces something of a despite a big jump in revenue. growth. Citing a report from iResearch, fl eet of yellow-and-black-clad couri- meals a day. It is the absolute inelastic electricity. downturn, with investors questioning It lost about $2.8bn in 2017. it estimates China’s consumer service ers competing against an army of blue- demand,” Wang said an IPO news con- He revealed the fact that sky-high valuations. Alibaba, meanwhile, has been beefi ng e-commerce market will grow to 8.01tn wearing Ele.me workers and red-uni- ference this month. besides Daral Khwar a number Tencent and Alibaba, along with re- up its off erings, snapping up food deliv- yuan ($1.17tn) by 2023, almost three formed Baidu takeaway crew. Its long-term success, though, of other power projects would cent listings like Xiaomi Corp, have ery service Ele.me and Baidu Waimai, times the size of the market last year. Meituan has already survived a subsi- will require keeping users like Hou start generating electricity seen their shares sink this year. which it plans to roll together with its “In the short term there will be dy war, but pricing – especially in food Chenchen on its platform outside meal during the current year, thus Meituan Dianping, like many of Chi- lifestyle services app Koubei. turbulence, but in the long run I ex- delivery – remains central. times. Hou, 21, a student in Shanghai, earning billions of rupees for na’s fast-growing tech fi rms, has had to Its affi liated payment app, Alipay, pect (Meituan’s) valuation to exceed On rival Ele.me’s app, prominent says she uses Meituan for many things: the provincial kitty. burn cash to keep ahead of rivals, both to which has more than 500mn users, al- $100bn,” said Li Chengdong, a Beijing- banners off er “50% off ” yellow rice food, taxi hailing, fi nding restaurants, subsidise shoppers and add new servic- ready bundles shopping and travel. based tech analyst. cakes, “delivery starting from 0 yuan” buying tickets and even karaoke. Gulf Times Tuesday, September 18, 2018 15 BUSINESS

Credit Suisse scolded for its oversight of rogue wealth manager

Bloomberg and his clients until a massive wrong-way “The lack of any fine in this case shows Credit Suisse said yesterday that Finma covered the period from 2006 to 2016. Frenchman gained 30mn francs through Zurich bet on a Californian drug maker in 2015 that the Swiss regulator is toothless in acknowledged “the improvements that Credit Suisse must put right “the relevant his deception. exposed his behaviour. terms of its inability to mete out meaning- have been made to our compliance and control systems and processes, and so In June, lawyers for Credit Suisse asked “Instead of disciplining the client manager ful penalties or other sanctions,” said control framework over the last few years prove that higher-risk business relation- Geneva’s Criminal Appeals Court to acquit Credit Suisse Group was scolded by promptly and proportionately, the bank Alexander, who is also a research fellow at and of the additional measures already ships and transactions are adequately Lescaudron of a single count of criminal Switzerland’s financial regulator for its rewarded him with high payments and the University of Cambridge. planned by the bank.” detected, categorised, monitored and mismanagement, but not his convictions failure to properly oversee a former star positive employee assessments,” Finma Finma also wrapped up a second case Shares of Credit Suisse fell 0.5% at 12:33pm documented,” Finma said in the state- for fraud and forgery. Lawyers for one wealth manager convicted of fraud, escap- said, adding that oversight was “inad- against the bank, this time looking at its re- in Zurich. The stock is down 16% this year, ment. of his clients said the bank was trying to ing any real penalties for its compliance equate” because of his special status. lationships with soccer’s governing body in line with a broader decline for the MSCI The bank began an overhaul of its overturn the mismanagement charge be- shortcomings. The regulator said it ordered Credit and two South American oil companies. Europe Bank Index over the same time compliance structure when the FIFA and cause unlike fraud and forgery, a convic- Finma identified deficiencies in the bank’s Suisse to improve internal controls and a Credit Suisse has exited a number of “high frame. Lescaudron aff airs became public. Since tion carries broad implication for what the anti-money laundering controls as well third party will be hired to monitor their risk markets” in recent years including The other case that Finma concluded 2015, Credit Suisse has split its legal and bank may have to pay out in civil lawsuits. as shortcomings in its oversight of the implementation. The bank pointed out that private banking with onshore Venezuela yesterday combined probes into the compliance units and created a regulatory In July, a Geneva appeals court ruled manager, identified as Patrice Lescaudron Finma didn’t order any illegal profits to be clients and Panama. In recent years, it also bank’s relationships with off icials at FIFA, aff airs and compliance unit that reports to that the prosecutor who led the pretrial by people with knowledge of the matter. repaid. Nor did the Swiss regulator hand stopped dealing with the riskiest so-called soccer’s governing body, and its dealings the CEO. investigation into Lescaudron must look The agency didn’t identify Lescaudron by down a fine as it’s not empowered to do so. politically exposed persons, who are seen with Petroleos Brazileiro SA and Petroleos Its chief, former investment banker Lara at whether the Frenchman should have name in the yesterday morning statement. It shows Finma lacks the enforcement as a potential hazard because of links to de Venezuela SA that have been at the Warner, became a member of the bank’s been charged for mismanaging two of Lescaudron was convicted in February tools that its British counterpart can wield funds from governments and national center of political firestorms in Brazil and executive board. The firm also hired an ad- his clients investments. Prosecutor Yves and sentenced to five years in prison for to police UK banks for compliance failures agencies. Venezuela. ditional 800 people to bolster compliance, Bertossa dismissed the allegation from his perpetrating an eight-year scheme in in London, according to Kern Alexan- Credit Suisse has consistently said that FIFA was rocked by a corruption probe and the bank’s board of directors plans to indictment of Lescaudron a year ago. which he made unauthorised trades and der, the chair of law and finance at the Lescaudron was a lone wolf who hid his that erupted in 2015, when dozens of establish a compliance committee. That leaves a chapter in the Lescaudron faked purchase orders in a bid to reverse University of Zurich. Last year Deutsche activity from his bosses and colleagues. soccer executives were arrested in Swiss Lescaudron maintained he never profited aff air still to be written. Beyond that, Credit deepening clients’ losses that resulted in Bank was fined £163mn ($214mn) by the Georgian billionaire Bidzina Ivanishvili, his police raids and the US Justice Depart- from his illicit trades and his deception Suisse is still being probed in two other damages of 143mn Swiss francs ($148mn). UK’s Financial Conduct Authority for biggest client and victim, said the bank ment filed charges relating to bribery was motivated by a desire to recover his legal cases that are related to compliance Lescaudron’s activity, which began in anti-money laundering failings related to must have, or at least should have, known allegations involving hundreds of millions clients’ money. The judge overseeing matters, according to a spokesman for 2007, went undetected by Credit Suisse Russian accounts. of his wrongdoing. of dollars. The regulator said that review the case disagreed and found that the the bank.

Deutsche Bank UK economy will shrink to move assets without Brexit deal: IMF from London Managing director Lagarde will “hope and pray” for Brexit deal; UK after Brexit and EU face “daunting” challenges to get deal; Brexit supporters accuse IMF of reviving “Project Fear” Reuters While the least disruptive Frankfurt possibility would have been Reuters that only new business would London move to the continent, a dis- eutsche Bank said yes- ruptive option is to actually terday it would move shift existing portfolios. ritain’s economy will shrink if it Dassets from London “This is not only a major leaves the European Union without to Frankfurt after Britain’s cross-border fi nancial fl ow in Ba Brexit deal and it will suff er some planned exit from the European itself but also a huge logistical damage whatever terms it agrees, the In- Union next year, in line with and legal undertaking for the ternational Monetary Fund said on Mon- demands from British and EU banks involved, and their cli- day, challenging the promises of some regulators. ents. Brexit supporters. Deutsche Bank said in a Contracts need to be modi- The Fund predicted Britain’s economy statement it would make fi ed, one by one,” Eurointelli- would grow by about 1.5% a year in 2018 Frankfurt rather than London gence said. and 2019 — lagging behind Germany and the primary booking hub for The ECB declined to com- France — if a broad Brexit agreement was its investment banking clients, ment. struck. as per an announcement made According to a report by the “I’m a desperate optimist, and I very last year. Financial Times, Deutsche much hope and pray that there will be a “By defi nition this involves Bank could over time move deal between the European Union and the moving assets from London to about three quarters of its esti- UK,” IMF managing director Christine Frankfurt, a process which is mated €600bn ($700bn) in as- Lagarde said. already underway with the full sets from London to Frankfurt. But failure to get a deal would lead to understanding of UK and EU One option being considered a contraction, she said.”Let me be clear, regulators,” it said, declining is to shrink the London balance compared with today’s smooth single to specify the volume of asset sheet so it ends up being small- market, all the likely Brexit scenarios will shifts. er than its US holding company, have costs for the economy and to a lesser A source familiar with the which has roughly $145bn of extent as well for the EU,” Lagarde said as matter said the European Cen- assets, the paper said. the IMF presented its annual report on tral Bank, as Europe’s main fi - According to a source close Britain’s economy. nancial supervisor, was putting to the matter, Deutsche Bank is “The larger the impediments to trade pressure on banks to shift in- also considering transforming in the new relationship, the costlier it will vestment banking activities its UK arm into a smaller, less be. This should be fairly obvious, but it from London to the continent. complex and ring-fenced sub- seems that sometimes it is not.” The ECB thereby wants to sidiary. Britain is due to leave the EU in little IMF managing director Christine Lagarde speaks during a news conference in London yesterday. “I’m a desperate optimist, and I prevent investment banks set- Analysts at Eurointelligence more than six months’ time but London very much hope and pray that there will be a deal between the European Union and the UK,” Lagarde said. ting up empty shells on the said this was costly in terms and Brussels have yet to strike a deal to continent while still supplying of capital. “We presume this is secure a transition period. Hammond has been criticised by some of “Project Fear,” a term Brexit support- However, stronger-than-expected data their services from London, the because of netting eff ects be- Prime Minister Theresa May has strug- Conservative Party lawmakers who say ers use for pre-referendum warnings of last week showed the economy had its source added. tween the London and Frank- gled to bridge a deep divide within her he wants to keep Britain too close to the the economic consequences of a Leave fastest growth in nearly a year, helped by Regulators are demanding furt books which would dis- Conservative Party about how close a EU. vote. the World Cup and hot summer weather. that capital, risk management, appear if the London business relationship Britain should have with the Many Brexit supporters say Britain “Did they learn nothing from their loss The IMF said there was a “daunting” governance structures are set becomes a separate fi rm,” they EU. must distance itself from Brussels in or- of credibility after Project Fear Mark 1? range of issues still to be dealt with before up on the continent to support said. She is hoping to make progress towards der to strike its own trade deals with fast- In other words, stop making bold claims Brexit. investment banking activities, Deutsche Bank said while the a deal when she meets fellow EU leaders growing economies around the world. when you really don’t know what will Lagarde also said the IMF would lower the person said. terms on which banks will op- this week. The IMF said those kind of deals would happen,” Lea said on Twitter. its forecast for global economic growth With passporting for fi nan- erate in the EU and Britain after British fi nance minister Philip Ham- not off set the drag to the economy from Britain’s economy — the world’s fi fth- when it updates its outlook in November. cial services off the table Deut- Brexit remained unclear, the mond, speaking alongside Lagarde, said leaving the EU. biggest — slowed after the 2016 referen- “But I can say at this point, without sche Bank illustrates what to lender plans to operate in the the government had to heed the “clear Ruth Lea, an economist with Arbuth- dum decision to leave the EU and it con- disclosing any numbers, is that clouds on expect from Brexit, analysts UK as a branch in line with the warnings” from the IMF of a no-deal not Banking Group and a Brexit advocate, tinues to be outpaced by most other rich the horizon have not become lighter but from think-tank Eurointelli- Prudential Regulation Author- Brexit. accused the IMF of joining a new round nations. darker,” she said. gence said. ity’s guidance.

Ferrari is said to put special edition supercar at heart of strategy plan Maersk says customers to Bloomberg more than two years after he called Marchionne’s Milan profit targets “aspirational.” Special edition models, which typically earn higher margins, could help Camilleri in boosting profits pay for $2bn-a-yr fuel hike Ferrari is set to unveil a special edition supercar that without losing the exclusivity of the brand. will form an integral part of chief executive off icer Ferrari customers typically have to wait more than Louis Camilleri’s highly-anticipated five-year strategy a year to get delivery of a new car while for special Bloomberg for the shipping industry,” Vincent Clerc, About 90% of world trade moves by sea, in- plan, according to people familiar with the matter. edition models, demand outstrips supply so the Copenhagen chief commercial offi cer at Copenhagen- cluding millions of tonnes of oil, gas and dry The so-called “Icona” project, hinted at to custom- company often selects its most loyal clients. based Maersk, said in a statement. commodities like coal and iron ore. ers last month in an invitation, will broaden Ferrari’s The new CEO has a tough act to follow after Mar- The new bunker fuel surcharge model “is The attempt to pass on costs is yet anoth- off ering of limited edition supercars, a range aimed chionne boosted Ferrari’s value by spinning it off from he cost of delivering world trade is a simple, fair and predictable mechanism er secondary impact from rules that are ex- at boosting profit margins, said the people, who Fiat Chrysler and then doubling profit in just four about to go up. that ensures clarity for our customers in pected to boost oil prices and upend global asked not to be named because details about the car years by raising production and introducing one-off T A.P. Moller-Maersk, the world’s planning their supply chains for this sig- refi ning systems. Until now, few companies aren’t yet public. A spokesman for Ferrari declined to models. The former chief, who died on July 25, was largest container shipping line, said yester- nifi cant shift.” have confi rmed publicly that their custom- comment ahead of a capital markets day scheduled preparing to expand the manufacturer beyond sport day that customers using its giant box ships Maersk, which controls about a fi fth of ers will have to pay up to cover the addition- to get underway today at Ferrari’s headquarters in cars and introduce hybrid electric vehicles, including will have to pay separately for fuel from the container shipping market, has for years al expense. Maersk’s ships transport every- Maranello, Italy. Details of the supercar were likely to its first ever SUV. The SUV is not expected to be shown 2020, when prices are expected to surge be- added surcharges to its container rates to thing from electrical goods to furniture. be revealed later yesterday. at the planned strategy presentation. cause of tougher environmental standards. make up for swings in bunker fuel prices Maersk plans to use more expensive low- Camilleri’s strategy for the race carmaker will be Ferrari is banking on Camilleri getting up to speed The regulations are designed to cut down with varying degrees of success. sulphur fuel when the new rules start, but closely watched by investors, especially whether he quickly. While Marchionne was planning to retire emissions of sulphur, a pollutant blamed for It hasn’t always succeeded in moving all will also install a limited number of its ves- will stick with a goal of doubling profit to €2bn by from Fiat Chrysler in 2019, he was meant to stay on at human health conditions such as asthma. costs over to clients because of fi erce com- sels with on-board equipment called scrub- 2022, a plan put forward by his deceased predeces- Ferrari for another five years. His succession plan was To get customers ready for the fuel up- petition and overcapacity in the shipping bers that enable the carriers to keep using sor, Sergio Marchionne. Camilleri was picked for the not as advanced at the Maranello-based company as grade, the Copenhagen-based company industry. cheaper fuels that are high in sulphur. job by John Elkann, the leader of the Agnelli family it was at FCA. Marchionne said in February that Ferrari will from next year start to break out the A successful implementation of the new “This will have an infl ationary impact on that controls Ferrari and Fiat Chrysler Automobiles, planned to double its profit to €2bn within five years. fuel cost when charging its customers for pricing system could have profound impli- the cost of transportation,” Olivier Jakob, an during a dramatic July weekend as Marchionne’s Elkann picked Camilleri as CEO while opting to take delivering goods in steel containers across cations for trade given that Maersk says its oil analyst at Petromatrix GmbH, said of the health took a turn for the worse. on Marchionne’s role as chairman of Ferrari. The race thousands of miles of ocean. own fuel bill in 2020 will jump by $2bn — or extra costs involved in complying with the The newly-minted CEO stumbled out of the gate carmaker’s strategy is also seen as a test of his own From 2020, customers will then be ex- almost 60% more than it had to pay in 2017. new rules. in August when Ferrari shares plunged the most in acumen. pected to cover that bill. The company estimates an extra fuel bill of “It could impact some world trade, it may “The 2020 sulphur cap is a game changer $15bn a year for container shipping lines. lower demand in some areas and goods.” Tuesday, September 18, 2018 GULF TIMES BUSINESS Benchmark crude futures continue decline for second week

www.abhafoundation.org last week, even though the October heating demand will still take some delivery prices had declined. After time to pick up. Like Gordon, the several weeks of gains and a tight tropical storm Florence depressed Oil fundamental picture, prices were due gas demand along its path with Benchmark crude futures continued for a correction amid a relatively low cooler weather and power outages. to decline for a second straight week, activity. Inventories, currently estimated at with a drop of more than 1.6% for In addition to steady demand 18% above the five-ear average, are both Brent and WTI. prompted by restocking ahead of the expected to drop to 8% by the end Demand risks outstripped other winter season, prices also received a of October, as utilities will continue factors, fuelled by escalating trade significant boost from relatively high steady injections into storage. UK disputes and crises in key emerging oil prices, where Brent is averaging gas futures dropped almost 4% last markets. The US rig count increased $75 a barrel for almost six months. week, stopping a seven-week gaining by seven according to the latest data; In the US, Henry Hub natural gas streak. however, rig activity looks capped, futures continued to decrease last Prices fell mostly due to a gas supply which is likely to be due to evacuation week, prompted by a drop in cooling recovery, a warmer weather forecast, this week on some producing oil and „ This article was supplied by the Abdul- Foundation for Energy and Sustainable constraints. demand in the fall season, while the and a cancelled strike action planned gas platforms in the North Sea. lah bin Hamad Al-Attiyah International Development. In contrast, supply factors were supportive, with the premium on reduced Iranian supply increasing. US crude stocks declined substantially by 5.3mn barrels last week, which trimmed the weekly price losses, along with a slowdown in the US crude production growth. US production forecasts were revised for both 2018 and 2019, down to 10.66mn bpd and 11.5mn bpd respectively. After an increase in the supply risks, as explained in previous editions, demand risks are also rising with both Opec and IEA warning that a downside could be inflicted on oil demand early next year. In this context, multiple scenarios could be envisaged, and a rise in price volatility can be expected. That in turn could generate price spikes in either direction.

Gas Asian spot LNG prices for November delivery reached $12 per mmbtu

GCC countries’ banks focused on consolidation: Fitch Solutions ‘GCC set to enjoy an uptick Region’s lenders said to benefit support deposit growth, ensuring suf- from ‘improving’ operating ficient funding to grow banks’ loan books environment in 2018 without hampering overall sector stability. That said, despite tailwinds from recover- By Pratap John ing economic activity, Fitch Solutions in economic activity in Chief Business Reporter caution that growth in the GCC banking sector and the support they receive from governments will remain modest com- Banks from across the GCC countries “are pared with the pre-oil slump boom years, becoming increasingly focused on con- which began in 2014. solidation deals in order to become more Year 2018 is an active year for deals: In ex- 2018, driven by oil prices’ competitive” on both regional and global pectation of the improving fortunes of the scale, Fitch Solutions said and noted sector, data from Zephyr, a Bureau van that commercial lenders in the region Dijk product, shows that there have been Fitch Solutions forecasts with the loss of Iranian barrels, will benefit from an improving operating 37 M&A deals across the GCC banking and average weighted real a reduction in global spare pro- environment in 2018. financial services industry announced in GCC GDP growth of 2.3% in duction capacity and a thin- In the ongoing climate of lower oil prices the 2018 ytd period worth a combined 2018 and 2.7% in 2019 ning project pipeline adding and a subsequent decline in government $7,832mn. upside pressure to prices.” banking deposits, which banking sectors Even though the volume of deals by By Pratap John From 2019, Fitch Solutions across the region are largely dependent this stage in the year has remained Chief Business Reporter expect prices to increase ro- on, banks across the Gulf Cooperation unchanged at 37, Fitch Solutions highlight bustly, with a healthy global Council block of nations are embarking that this represents a more than four-fold demand growth outlook out- on a merger drive. increase in deal value from the $1,808mn he GCC countries look pacing supply growth, which According to Bloomberg data, there were in deals announced by the same stage set to enjoy an uptick will continue to experience 73 GCC-based banks serving around 51mn last year. Tin economic activity in constraints due to Iranian customers (as of September 2018), mak- This also ranks the tally of deals in the 2018, largely driven by further sanctions, limited new project ing size and scale increasingly important ytd period as the second-most active gains in oil prices, Fitch Solu- start-ups and declining rates in a competitive marketplace. since 2010, with the equivalent period in tions has said in a report. in Asia-Pacifi c, Sub-Saharan In Fitch Solutions’ view, the “surge in 2016 leading the way with a post-global Fitch Solutions team fore- Africa (SSA) and Europe. merger activity over recent quarters financial crisis high of 38 deals recorded casts Brent to average $75 a In sum, Fitch Solutions said can be largely attributed to attempts by worth a combined $19,436mn. barrel this year and $80/b while the ongoing oil price re- lenders to jockey for position ahead of the “While banking mergers are complex in 2019, up from $54.8/b in Gasoline storage tanks stand at the Q8 Europort refinery, operated by Kuwait Petroleum Corp, covery is set to remain a long expected improvement in operating con- and require the crossing of numerous 2017, which will support con- in Rotterdam, Netherlands (file). Fitch Solutions team forecasts Brent to average $75 a barrel this way off former highs, the ditions that lies just around the corner.” regulatory hurdles as well shareholder fi dence in the economy, and year and $80/b in 2019, up from $54.8/b in 2017, which will support confidence in the economy, more supportive and stable “We believe that GCC commercial banks agreement on valuations,” Fitch Solu- enable governments to move and enable governments to move away from austerity. oil price outlook beyond 2019 will benefit from an improving operat- tions highlight that “there is plenty of away from austerity. should serve to support the ing environment in 2018, largely owing upside potential for further deals to be The uptick in economic ac- earlier. At the centre of the with oil prices,” Fitch Solu- ty around the impact from the GCC banking sector’s growth to the economic recovery underway announced over the coming quarters too, tivity in 2018, Fitch Solutions need for GCC economies to tions said. sanctions on Iran by the US and its subsequent ability to across the region. Rising oil prices will and some of them could be sizeable when believes, will be a boon for the diversify away from their fo- The banking sector and the (which will place up to 2.5mn compete on the global stage. enable governments to move away from taking the value of combined assets into banking sector of these coun- cus on oil and into new sec- regional economy has suf- bpd of oil exports at risk), “As such, we expect to austerity, which supports consumer and account.” tries. tors is inextricably linked to fered since volatility fi rst hit as well as further trade risk see an ongoing fl ow of deals business confidence and has a positive The latest deal to be put on the table – “We forecast average the price of oil itself. the oil price environment between the US and China, across the region as lenders impact on credit demand,” points out and further accelerate the merger trend weighted real GDP growth of “In the similar vein, so is back in mid-2014, and a sus- clouds the outlook. and operators in the fi nancial Fitch Solutions, which was known as BMI – is a potential tie-up between Qatari 2.3% in 2018 and 2.7% in 2019 the speed at which they are tained period of low prices “On the back of such events, services sector shuffl e for po- Research earlier. lenders Barwa Bank and the International across the block, after bot- able to do so. Furthermore, has continued since. we have revised our medium- sition ahead of the expected Meanwhile, government eff orts to support Bank of Qatar, which would potentially toming at an estimated 0.4% growth in local banking as- “Looking ahead, we high- term price forecast upwards return of tailwinds to the in- domestic banks through capital injections, create a group with total assets of $22bn, in 2017,” points out Fitch So- sets is closely correlated to light that in the near term, we with new price targets from dustry and the improvement combined with rising interest rates, will Fitch Solutions noted. lutions, part of Fitch Group, economic growth, and both see heightened price volatility 2019-2022. We foresee a grow- in the macroeconomic back- and known as BMI Research will also rise or fall in tandem in Brent as further uncertain- ing market defi cit from 2019, drop,” Fitch Solutions noted. Seminar underscores strong commitment to continuing US-Qatar co-operation in energy

The US National Association of Regulatory Energy Aff airs at the Ministry of Energy and Utility Commissioners (NARUC), in association Industry, thanked the development in bilateral with the US Department of Energy, recently co-operation, which is expected to contribute held a training seminar, which was attended broadening Qatari off icials’ understanding of by more than 20 Qatari senior staff , managers the US experience in this area. and trainees from several government and The seminar featured a productive exchange private entities including the Ministry of Energy between the US and Qatari participants and and Industry, Qatar Petroleum, Kahramaa, underscored strong commitment of the US and Qatar Electricity and Water Company, and Siraj Qatar to continuing constructive co-operation Company. in the field of energy. The US commends The seminar, conducted as a live webinar, was Qatar’s National Vision 2030 eff orts to achieve held under the title “Models for Regulating the sustainable development goals, and the eff orts Electricity Sector and Encouraging Renewable of public and private sector personnel to deliver Energy Integration.” high-quality services to the residents of Qatar It featured presentations by Diane Burman, to raise standards of living in the country. commissioner for the New York Public Service The US Department of Energy and Qatar’s Commission; Jack Betkoski, commissioner for Ministry of Energy and Industry signed the Connecticut Public Utilities Authority and a Memorandum of Understanding to president of NARUC, and Tom Stanton, principal strengthen and facilitate bilateral energy researcher at the US National Regulatory co-operation during the inaugural US-Qatar Research Institute. Strategic Dialogue held in January 2018 in Sheikh Mishal bin Jabor al-Thani, director of Washington, DC.