ESKOM WOES | Page 3 From national treasure to global disgrace

Friday, February 22, 2019 Jumada II 17, 1440 AH UK FINDINGS: Page 12 Watchdog fi nes GULF TIMES asset managers for breaking BUSINESS competition rules

Global trade pain stings export India, China to drive economies from Japan to Germany

Bloomberg natural gas market Frankfurt

rom Japan to Germany, from economic numbers to profi t warnings, there’s no shortage of evidence that the Fworld is feeling the pain of a slump in trade. In Asia, South Korea and Japan reported declines in exports, while European powerhouse Germany is seeing manufactur- until 2040: IEF chief ing shrink the most in six years. Shipping giant Maersk said yesterday that profi t will fall short of expectations, and chief Share of gas in global energy mix will GECF and called for the organisation’s executive Soren Skou said the outlook for this year is bleaker. be no less than 25% by 2040, says “valued contributions” to the dialogue. A UBS tracker puts global growth at the weakest in a dec- Dr Xiansheng In order to enhance this dialogue, the ade, and the worries have overwhelmed central bankers. GECF will participate in the ‘9th IEA-IEF- On Wednesday, minutes of the Federal Reserve’s last policy By Pratap John OPEC Symposium on energy outlook’ next meeting highlighted slower growth in China and Europe, Business Editor week, of which the GECF will be the fourth trade disputes and complications from Brexit. partner. The European Central Bank was set to publish the account GECF secretary general Dr Yury Senty- of its January meeting later yesterday, and some offi cials have ndia and China will drive the natural gas urin made introductory remarks. already laid the groundwork for a policy response in March. market until 2040, International En- Dr Xiansheng is an accomplished au- That could include new long-term loans for banks and a Iergy Forum (IEF) secretary general Dr thority not only on energy policy related change to their language on the outlook for interest rates. Sun Xiansheng said even as he underlined matters, but has ample industry experi- “Uncertainty is the big buzzword for central banks,” natural gas’s “critical role in achieving sus- ence, covering both oil and gas produc- Carsten Brzeski, ING Diba chief economist, said on Bloomb- tainable and inclusive growth”. tion, trading and pipeline construction, erg Television. “Maybe if all these external risks turn out be- The two Asian countries will be the ma- gathered through the various roles he held nign, then we might see another move by the Fed, another jor consumers over the next two decades at China National Petroleum Corpora- attempt by the ECB to normalise. But judging from today, followed by Africa and the Middle East, he tion (CNPC). In his current role as the the probability that all these risks will have a benign outlook said while delivering the second edition of secretary-general of the IEF, an intergov- is pretty low.” the 2019 series of the Gas Exporting Coun- ernmental organisation that aims to foster Bond markets around the world have responded to the tries Forum’s (GECF) monthly lecture here greater mutual understanding and aware- weaker outlook. The average yield on securities in the yesterday. ness of common energy interests among its Bloomberg Barclays Global-Aggregate Index fell this week to Indian demand for gas is estimated to members, he has contributed greatly to the the lowest since April, and Japanese bond yields dropped to grow at 4.9% through 2040 while that of global dialogue on energy. two-year lows yesterday. China at 4.7%, Xiansheng said while de- The organisation has some 72 member “There is no sense that yields will rise anywhere around livering the lecture entitled “Global Energy countries and between themselves account the world,” said Takafumi Yamawaki, head of Japan rates and Security: The Role of Gas in Sustainable for the bulk of global supply and demand foreign-exchange research at JPMorgan Chase & Co in Tokyo. and Inclusive Growth” at the GECF’s head- for oil and gas. That makes this year’s V-shaped recovery in global equity quarters in Doha. Considering their similarities and markets all the more striking as traders bet on a resolution to Africa’s demand will grow at an estimated aligned interests, such as encouraging the US-China trade dispute. 3.3% between now and 2040, while the Mid- Dr Xiansheng delivering the second edition of the 2019 series of the Gas Exporting the dialogue between producers and con- In the euro area, the manufacturing Purchasing Manag- dle East at 2% during the period, he said. Countries Forum’s monthly lecture in Doha yesterday. Right: Sentyurin. sumers, the GECF and the IEF have been ers Index dropped to a level consistent with contraction. IHS Demand in the US, the world’s largest PICTURES: Shemeer Rasheed collaborating for several years, an exam- Markit, which compiles the report, said the 19-nation econ- economy, will grow at 0.7% through 2040, ple of that being their joint work on the omy may struggle to register growth much above 0.1% this Xiansheng said. This is a fact, he said, that has been the market, but Qatar will continue to be Joint Organisations Data Initiative (JO- quarter. In terms of production, the IEF secretary proven by all major forecasting agencies, a steady producer through the forecasted DI-Gas). Orders fell for a second month, with companies citing general noted that Africa will grow at an including Opec and the International En- period. And while the focus of the GECF is on “global trade protectionism worries, Brexit, the downturn of estimated 3.7% until 2040. Mozambique ergy Agency. In terms of the consumers, the IEF sec- natural gas as the cleanest, most effi cient the auto sector, increased political uncertainty.” will drive the African production at 12.2% “In fact, the share of gas in the global en- retary general mentioned there would be a and most versatile source of energy, simi- But there were some positives. Services proved a bright during the period, he said. ergy mix will be no less than 25% by 2040,” shift to Asia, with China and India having larly to the IEF, it looks at the interrelation spot, and it pushed the overall composite PMI to a three- The Middle East will follow with a he noted. the fastest growth rate. between gas and other energy sources as month high. France also off ered some support, reporting a growth rate of 2.2% with Qatar and Iran The fi gure also corresponds with the fi g- Xiansheng also called for collaboration well as the sustainable growth of gas mar- better-than-forecast PMI that may hint at a stabilisation. leading gas production until 2040. ures projected in the GECF’s own Global in terms of policy and investment deci- kets. For Skou, his peers, and global manufacturing as a whole, In Asia–Pacifi c (2%), Australia and Chi- Gas Outlook 2040. sions and a necessity to develop infrastruc- Both organisations are united in their the latest fi gures show that a truce in the US-China trade war na will be major producers at 3% and 3.9% “Gas will continue to get momentum as ture and pricing mechanisms. In order to belief that achieving the United Nations can’t come soon enough. respectively. it can be a solution to the Paris Agreement ultimately reach energy security supply, he Sustainable Development Goals (SDGs) The latest reports are that negotiators are working on mul- In his speech, Xiansheng underlined the Goals,” Xiansheng stated. stressed that “international and regional and especially SDG 7 ‘Ensure access to af- tiple memorandums of understanding that would form the critical role of natural gas in achieving sus- Looking at producers, he said several energy cooperation is the solution”. fordable, reliable, sustainable and modern basis of a fi nal trade deal, though no breakthrough is expected tainable and inclusive growth. new emerging producers are expected in This is where he praised the role of the energy for all’ is of prime importance. during talks this week. Samsung revamps flagship range with 5G, low-cost options

Bloomberg first time the figure had slid on a full-year Samsung’s stock fell about 1% yesterday would be integrated into the new camera San Francisco/London basis, according to Strategy Analytics. morning in Seoul. application. It lets people upload photos Consumers are holding on to their Samsung will probably sell more than and videos directly to the Instagram phones longer and spending less on 40mn Galaxy S10 units in the first year of Stories feature and use the app’s filters. Samsung Electronics Co debuted its most upgrades, putting pressure on manufac- release, Counterpoint said in an e-mail. Samsung also said it is working with extensive new lineup of smartphones, turers to bolster innovation and justify That would be more than the Galaxy S9 Adobe Inc on an optimised version of its taking on Apple Inc in a slowing market their price tags. With premium mobile for the same period, but fewer than the Premiere Rush CC video editing app. with 3-D cameras, an in-screen fingerprint phones that can cost well over $1,000 a Galaxy S7, Samsung’s best-selling S-series The Galaxy Fold, which turns into a tablet, scanner and faster 5G connectivity and a piece, customers have also been turning smartphone, it said. will cost $1,980. device with a folding screen. to lesser-known companies, which has The S10 and S10+ include 6.1-inch and “The foldable design, especially the The South Korean technology giant given rise to Chinese companies such as 6.4-inch screens respectively, up from hinge, is more refined than many other introduced four new phones in its Galaxy Huawei Technologies Co, Xiaomi Corp 5.8 inches and 6.2 inches on last year’s competing solutions,” said Bryan Ma, vice S range – the S10, S10+, S10e, and S10 5G. and Oppo. models. The front-facing cameras sit inside president of devices research at IDC. “But The S10 and S10+ are direct successors to In China, Samsung has been almost holes cut into in the display itself as an there are still a number of challenges last year’s S9 and S9+, while the S10e and driven out of the phone market, and alternative to including them in a “notch,” around hardware – thickness, crease, bat- S10 5G are two new models for the com- globally it faces losing the title of the as the iPhone does. The displays also now tery, reliability, price – as well as software. pany: a low-end phone aimed at Apple’s world’s biggest handset maker to Huawei. have in-screen fingerprint scanners, a new It won’t be a big volume mover at that iPhone XR, and a high-end version priced Samsung sold 291mn smartphones last approach that diverts from the 3-D facial price, but keep in mind that notebook above $1,000. It also showed off the year while Huawei sold 206mn, according recognition scanner employed by Apple in PCs used to cost $2,000, too, before they Galaxy Fold, a smartphone with a screen to StrategyAnalytics. its latest devices. They also add a third back reached more aff ordable price points.” that expands to tablet size. “The introduction of the Galaxy S10e is camera as a wide-angle lens. Those models Even with Apple’s strong market share in Samsung’s success with its latest gadgets likely a response to the premium-price start at $900 and $1,000 respectively. regions like the US, the new Samsung line will be a barometer for a global smart- fatigue now plaguing the industry,” At its San Francisco event, Samsung also could pose a serious challenge to iPhones. phone industry struggling to revive mo- Wayne Lam, a mobile devices analyst at announced a pair of key partnerships for Samsung is beating Apple by about half a mentum after a decade of robust growth IHS Markit, wrote in an email. “Samsung’s the new devices. Adam Mosseri, head of year with features like triple-camera pho- ground to a halt. Global shipments fell fortune in China may very well rest on the Facebook Inc’s Instagram photo-sharing tography, and by at least a year a half with Samsung product marketing manager Drew Blackard announces the new Galaxy last year to 1.43bn units, marking the revitalised Galaxy S10 product line.” app, announced that an Instagram mode 5G and a rear-facing 3-D camera. Page 4 S10 5G during the Samsung Unpacked event in San Francisco. Gulf Times 2 Friday, February 22, 2019 BUSINESS

Buying support from domestic institutions helps QSE near 10,200 level

By Santhosh V Perumal slower than the main index in the Holding, Industries Qatar, QNB, Doha buyers of QR41.11mn on Wednesday. shares, 17% in value to QR41.45mn and Business Reporter market, where Gulf institutions turned Bank, Islamic Holding Group, Qatari Gulf individuals’ net profit booking 13% in deals to 1,443. bearish. German Company for Medical Devices, strengthened noticeably to QR2.38mn The consumer goods sector’s trade Trade turnover and volumes were on Salam International Investment, against QR1.04mn the previous day. volume grew 23% to 0.64mn equities The Qatar Stock Exchange yesterday the increase in the bourse, where the Medicare Group, United Development Non-Qatari institutions’ net buying on more-than-doubled value to gained 114 points to inch near the industrials, realty and banking sectors Company, Barwa and Vodafone Qatar. shrank influentially to QR78.04mn QR100.81mn on a 38% growth in 10,200 level, mainly on strong buying together accounted for more than 86% Nevertheless, Qatar Islamic Bank, compared to QR91.7mn on February transactions at to 686. support from domestic institutions in of the total volume. Alijarah Holding, Dlala, Qatari Investors 20. However, the transport sector saw a view of attractive valuations. The Total Return Index gained 1.5% to Group, Qatar Industrial Manufacturing, Total trade volume grew 63% to 45% plunge in trade volume to 0.17mn Robust demand, especially for the 18,109.02 points, the All Share Index Ooredoo and Gulf Warehousing were 14.45mn shares, value by 13% to stocks, 53% in value to QR3.74mn and industrials, banking and consumer by 1.31% to 3,976.52 points and the Al among the losers. QR432.38mn and transactions by 16% 35% in deals to 128. goods equities, led the 20-stock Qatar Rayan Islamic Index (Price) by 1.08% to Domestic institutions’ net buying to 7,484. The insurance sector’s trade volume Index to settle 1.13% higher at 10,191.5 2,432.92 points. increased substantially to QR54.18mn The telecom sector’s trade volume plummeted 23% to 0.34mn shares and points. The industrials index soared 2%, against QR11.53mn on Wednesday. almost tripled to 0.86mn equities and value by 19% to QR11.69mn, whereas Foreign institutions continued to be followed by banks and financial Local individuals’ net selling declined value rose 7% to QR12.13mn, while transactions expanded 48% to 536. buyers but with lesser intensity in services (1.68%), consumer goods significantly to QR91.32mn compared deals were down 10% to 497. The banks and financial services the market, whose sensitive index (1.24%), real estate (0.73%) and to QR141mn the previous day. The industrials sector’s trade volume sector reported a 1% dip in trade registered 1.04% declines year-to-date. transport (0.29%); while insurance and However, non-Qatari individuals’ net more than doubled to 6.97mn stocks volume to 2.56mn equities, 37% in Robust demand, especially for the Market capitalisation expanded 1.27%, telecom declined 0.83% and 0.03% profit booking grew considerably to and value also more than doubled value to QR126.02mn and 15% in deals industrials, banking and consumer or more than QR7bn, to QR578.4bn respectively. QR27.54mn against QR2.38mn on to QR136.54mn on a 43% increase in to 1,304. goods equities, led the 20-stock mainly owing to large and midcap About 67% of the traded stocks February 20. transactions to 2,890. In the debt market, there was no Qatar Index to settle 1.13% higher at segments. extended gains with major movers Gulf funds turned net sellers to the The real estate sector reported a trading of treasury bills and sovereign 10,191.5 points yesterday Islamic equities were seen gaining being Mesaieed Petrochemical tune of QR11.03mn compared with net 42% surge in trade volume to 2.92mn bonds.

Just like that; Oman said to cut borrowing Oman bond yields are plans as it turns to asset sales back below

Bloomberg Bahrain’s Dubai

Bloomberg man plans to slash its bor- Dubai rowing requirements for 2019 Oby as much as 70% and rely on asset sales to plug one of the largest he hefty premium investors de- budget defi cits among oil exporters, manded to hold Oman’s Eurobonds according to a senior government of- Trather than those of lower-rated fi cial. Bahrain has just vanished. The Gulf Arab nation will likely The sultanate’s plans to slash its borrow- raise between $2bn and $3bn in bonds ing requirements and rely on asset sales for and loans, the offi cial said on condi- funding lifted Eurobonds due 2028 by the tion of anonymity because the plans most on record, driving the yield down 40 haven’t been made public. The budg- basis points to 6.41% as of 9.54am in Lon- et had listed debt requirements of don yesterday. Bahrain’s similar-maturity about $6.2bn. debt, which rallied last year after winning Oman is working with legal advis- a $10bn bailout package and inclusion in ers to update its bond programme and JPMorgan Chase & Co’s emerging-market will tap the market before early May. bond indexes, now yields three basis points The country plans to plug its funding more than Oman’s, according to data com- gap using dividends and capital gains piled by Bloomberg. received from Oman Oil Co’s stake Oman’s BB grade by S&P Global Ratings sale of the Khazzan fi eld, the offi cial is two levels higher than Bahrain’s. said. Oman, which has one of the largest An additional $1bn will come from budget defi cits among oil exporters, will the ownership transfer of some gas also tap a $1.2bn loan backed by the World pipelines to Oman Gas Co, he said. Bank’s Multilateral Investment Guarantee “The market was expecting $6bn Agency, and any additional funding will of supply, if we get less and if we see come through domestic borrowing, a sen- evidence of fi scal consolidation and ior government offi cial said on condition of discipline in Oman we should see anonymity because the plans haven’t been spreads tighten,” Abdul Kadir Hus- made public. sain, head of fi xed-income asset Oman has been slow to implement re- management at Dubai-based invest- forms following the crash in oil prices in ment bank Arqaam Capital Ltd. 2014. Since then, its debt as a share of eco- The country’s dollar bonds due nomic output has risen 10-fold to 50%. in January 2028 gained the most on Fitch Ratings downgraded the country’s record, with the yield falling as much debt to junk in December, fuelling a sell- as 47 basis points to as low as 6.35%. off in the nation’s bonds. The securities were trading at 6.52% “The key for Oman will be how fast they by 11.22am in London yesterday. start some reforms on the fi scal front,” said The plan is helping to pair losses in Sergey Dergachev, senior portfolio manag- Oman’s bonds as the country grap- The traditional houses of the old city district sit surrounded by mountains in Muscat (file). Oman plans to plug its funding gap using dividends and capital gains er at Union Investment Privatfonds GmbH ples with volatile oil prices. The yield received from Oman Oil Co’s stake sale of the Khazzan field, an off icial said. in Frankfurt. “There needs to be a realisa- on dollar-denominated securities tion by the ministry of fi nance and central due in 2028 had risen almost 100 ba- nancial crisis and won’t need a bail- the Middle East and North Africa, defi cit of 9% of gross domestic prod- is the only rating company that has bank that its investment-grade rating is at sis points since the end of September out similar to the one that Bahrain such as companies from Saudi Ara- uct this year, has been slow to imple- Oman at investment grade, though severe risk by Moody’s.” through Wednesday, according to got last year as its fi scal position im- bia, to get better pricing, Jaiparan ment reforms following the crash in it’s just one level above junk. S&P has lowered the sultanate’s debt data compiled by Bloomberg. proves, according to S&P Global Rat- Khurana, a London-based strategist oil prices in 2014. Since then, its debt The government offi cial said some ratings by six notches since early 2015, re- Bond investors may be fretting too ings. Oman’s dollar bonds continue to at Morgan Stanley, wrote in a note, as a share of economic output has of the needed borrowing will come fl ecting concern over its fi nances,” Trevor much about Oman’s fi nances, ac- trade at a discount to similarly rated citing Bloomberg’s story. “With 2019 risen 10 fold to 50%. from tapping a $1.2bn loan backed Cullinan, a credit analyst at S&P, said in an cording to the rating company that peers, even after rebounding from budget forecasts looking ambitious Fitch Ratings downgraded the by the World Bank’s Multilateral In- interview in Dubai on Tuesday. Oman’s fi s- was the fi rst to downgrade the sultan- last quarter’s sell-off . versus the 2018 out-turn, slippages country’s debt to junk in Decem- vestment Guarantee Agency. Any ad- cal position is now improving and the cur- ate to junk. Oman may come to the market be- cannot be ruled out,” he said. ber, fuelling a sell-off in the nation’s ditional funding will come through rency peg is set to “remain in place for the The nation will likely avoid a fi - fore May to beat other issuers from Oman, with an expected budget bonds. Moody’s Investors Service domestic borrowing, the offi cial said. foreseeable future,” he said.

Tunisian central bank sees inflation below Iraq vows to continue sanctions-busting 7% after rate hike

Reuters imports from Iran despite US pressure Tunis

Bloomberg year after pulling out of the Iranian Tunisia’s central bank chief said he expects inflation to Moscow nuclear deal, Mustafa said fall below 7% following Tuesday’s interest rate rise but Iraqi Prime Minister Adel Abdul the government also needs to do more to curb prices. Mahdi’s government has rebuff ed “After our decision to raise the interest rate we expect raq is close to fi nalising a deal that the US pressure to cut energy ties the annual inflation to fall to less than 7%, precisely will allow it to import Iranian en- with Iran, adding to strained ties to 6.8% or 6.9%,” central bank governor Marouane Iergy despite American sanctions with Washington over Trump’s vow Abbassi told reporters on Wednesday. by avoiding the US dollar, an Iraqi of- to keep troops in Iraq indefi nitely to Inflation stood at 7.1% in January. fi cial said. “watch” the Islamic Republic. The The bank raised its key interest rate to 7.75% on “A big delegation came from the two neighbours have become close al- Tuesday, from 6.75%, to curb inflation, the third such Iranian central bank and the idea was lies since the 2003 US-led overthrow hike in the past 12 months. proposed to trade with Iran in euros,” of Saddam Hussein. It last raised the rate by 100 basis points in May. Abdulkarim Hashim Mustafa, special “These are American sanctions and “Raising interest rates is very important but not adviser to Iraq’s prime minister, said we have the right to protect our na- enough to curb inflation,” he said. “It should be in an interview on Tuesday in Mos- tional interests,” Mustafa said. “We accompanied by other measures by the government cow on the sidelines of a Middle East tell them always: we are your friends including fighting cross-smuggling and monopolies in conference hosted by the Kremlin- but we are not part of your policies in local trade.” backed Valdai discussion club. “There the region. The Americans are well Tunisia’s inflation rate has come down from 7.5% in are other ideas to pay in Iraqi dinars, aware of this – it isn’t news for them.” December and had reached 7.8% last June, the highest or in oil.” Iraq doesn’t expect the American since 1990. The US has been pressuring Iraq forces to stay for an indefi nite period The dinar has slumped as a worsening trade deficit to end its purchases of Iranian natu- of time, the offi cial said. “When the has eroded Tunisia’s foreign currency reserves, which ral gas and electricity, which meet a Iraqi side asks the American side to now cover only about 85 days’ worth of imports. large share of domestic energy needs. pull out, they will withdraw as they The International Monetary Fund called last October In the meantime, it has extended to have done in the past,” he said. “As for further monetary tightening by Tunisia to tackle A vendor inspects Iranian rials at a currency exchange shop in Baghdad. Iraq is close to finalising a deal Baghdad a temporary waiver from the the terrorist threat recedes, the US rising prices. that will allow it to import Iranian energy despite American sanctions by avoiding the US dollar, an Iraqi sanctions targeting Iran that Presi- will scale back its military presence off icial said. dent Donald Trump reimposed last in Iraq.” Gulf Times Friday, February 22, 2019 3 BUSINESS

From national treasure to global disgrace; what ruined Eskom?

The nation will likely pay for a few ity. Other state entities, including South years of mismanagement and African Airways, the national carrier; graft “for generations to come” armaments company Denel SOC Ltd and the public broadcaster also fell victim to Bloomberg graft and bad management decisions and Cape Town appointments. They too are in dire financial straits and in need of bailouts. The sorry state of South Africa’s state The nation’s finances slid as well. Public power utility starkly illustrates just how far debt and the state wage bill soared, while the country slipped during former presi- the country experienced several ratings dent Jacob Zuma’s scandal-marred rule downgrades before eventually being and the enormity of the task of rebuilding relegated to junk by S&P Global Ratings the nation’s stricken finances. and Fitch Ratings Ltd. From the heady days of the 2000s, when Nedbank Ltd, South Africa’s fourth-largest growth topped 5% a year, the economy bank, estimates that corruption, malad- has struggled through two recessions, and ministration and bad policies shaved debt ratios have tripled. There have been 470bn rand off the nation’s gross domes- almost daily revelations of state corruption, tic product between the start of Zuma’s the nation’s final investment-grade rating is second term in May 2014 and February hanging by a thread and budget surpluses last year, when the ANC forced him to step have turned to ever-widening shortfalls. down to stem a loss of support. And then there’s Eskom Holdings SOC Ltd, The task of picking up the pieces has been which supplies 95% of the nation’s power. left to Zuma’s successor and new party Driven to the brink of collapse, it secured leader Cyril Ramaphosa. He has replaced a record 69bn rand ($4.9bn) bailout in the boards and management of Eskom the national budget on Wednesday, an and other state companies, embarked on allocation that will force the government a drive to lure $100bn in new investment to break its expenditure ceiling. and clamped down on graft. But rebuild- Company chairman Jabu Mabuza said ing the economy will likely take years — even that might not be enough. The utility the Treasury sees growth averaging just had wanted 100bn rand to help service 1.8% over the next three years and sees its mountain of debt, pay its bloated the budget deficit swelling to a decade workforce and maintain an ageing fleet of Pylons carry electricity from a sub-station of state power utility Eskom outside Cape Town (file). South Africa’s National Treasury now considers Eskom the biggest high. power plants that intermittently trip and threat to the nation’s finances. State institutions have been so badly dam- cause rolling blackouts. aged and graft has become so embedded “We are paying for the past, the nine absolutely essential entity for the future of company of the year at the Financial from off ice, a series of inquiries placed the “Eskom is a symbol of where South Africa that a turnaround could prove elusive, years of waste,” said Colin Coleman, chief our economy,” he said. “Eskom is receiv- Times Global Energy Awards in New York, utility at the epicentre of a looting spree finds itself today, a combination of having according to Andre Duvenhage, a political executive off icer of sub-Saharan Africa at ing absolutely intense attention.” with all of its 78 production units consid- of billions of rand in taxpayer funds by a lot of potential and messing up on that science professor at North-West Univer- Goldman Sachs Group Inc. “South Africans Eskom is a South African success story ered to be in good working condition. allies of the then-president, with his tacit due to wrong decisions, wrong manage- sity in Potchefstroom, west of Johan- are going to pay for that for generations gone wrong. But by 2005, South Africa was running consent. ment actions,” said Roland Henwood, a nesburg. While Ramaphosa may have the to come.” Founded in 1923, the utility built dozens of short of power, after the government Zuma denies any wrongdoing. political science lecturer at the University necessary qualities required to pull it off , The government is taking several steps mainly coal-fired plants over six decades underestimated the scale of demand and Meanwhile, the utility’s staff soared by a of Pretoria. “The government has been he’ll be hamstrung by his unsteady grip to fix Eskom in addition to the bailout, to become the world’s fourth-largest delayed investments in new generat- third, to 48,628, between 2007 and last forced into making concessions to Eskom, over the ruling party and his opponents including breaking it into three units and power company. When white minority rule ing capacity. The real rot at Eskom set year, while its generating capacity rose but there’s no other option.” within it, he said. ensuring it cuts costs, Public Enterprises ended in 1994, its spare generating capac- in following Zuma’s election to head the just 7% and power sales volumes less than The National Treasury now considers “This change isn’t a one-year project, Minister Pravin Gordhan said in an inter- ity during peak demand times was more ruling African National Congress in late 3%. Electricity prices surged almost five Eskom the biggest threat to the nation’s it’s more like a second transformation,” view with Bloomberg Television yesterday. than double the international norm of 15%. 2007. He became president in May 2009. times over the period and Eskom’s debt finances. But the decay that occurred Duvenhage said. “I’m not sure the political “Everyone recognises that Eskom is an Seven years later, it was named power By last year, after Zuma had been booted ballooned almost 10-fold. during Zuma’s rule wasn’t just at the util- environment can take this.”

Bloomberg QuickTake Q&A Why South Africa’s Eskom has the lights flickering

By Mike Cohen and Paul Burkhardt and repairs, and it lacks key technical orchestrated attempt by Zuma’s Johannesburg skills needed to carry out the work, allies to raid Eskom’s coff ers with despite having a bloated workforce. his tacit consent. Accusations that Plants that produce more than half the utility was looted are now being Blackouts have had South Africans Eskom’s power are at, or nearing, their investigated by a judicial commission. firing up candles, flashlights and ideal retirement age. Zuma and his allies deny wrongdoing. generators as crisis-plagued Eskom 2. How did this happen? Eskom’s board and management Holdings SOC Ltd, which provides were replaced in January 2018, most of the country’s electricity, South Africa was able to produce the month after Cyril Ramaphosa struggles to meet demand. The state- more electricity than it needed when succeeded Zuma as head of the ruling owned company took almost 10% white-minority rule ended in 1994, but party, the African National Congress. of its generation capacity off line in the government didn’t foresee how Since then, there’s been a concerted recent weeks to prevent the collapse sharply demand would spike as the eff ort to stamp out graft, and a of the national grid, a consequence economy expanded and previously number of senior executives and staff of construction problems at two neglected black areas were connected have left the company. Ramaphosa new plants and years of deferred to the grid. Eskom announced a series was named South African president in maintenance. But Eskom’s problems of multibillion-dollar investments after February 2018, after the ANC forced run far deeper. It’s mired in debt and the government awoke to the severity Zuma to step down. isn’t selling enough energy to cover of the problem in the mid-2000s, but 4. How precarious is Eskom’s Cows graze as steam rises from the cooling towers of Matla Power Station, a coal-fired power plant operated by Eskom all its costs, leaving it scrambling for the projects came too late and took fi nancial position? in Mpumalanga province, South Africa. The country plans to bail out the utility and split it into three entities in the hope money to replace ageing plants. Now too long to build. The first wide-scale of reviving its fortunes. South Africa plans to bail out the utility outages occurred in late 2005. The Very. By its own admission, it’s in a and split it into three entities in the Medupi and Kusile coal-fired plants, “death spiral.” It is saddled with 419bn hope of reviving its fortunes. which were supposed to add almost rand worth of debt that it’s battling to 5. What’s being done to get up money for operations. Eskom had the immediate horizon, and it’s hard 1. What caused the power 9,600 megawatts to the grid and be service, and it anticipates showing a the utility back on track? floated a proposal for the government to see the government allowing it to shortages? fully operational in 2015, are still years loss of about 20bn rand for the year to take over some of its debt – an option happen. The utility provides about 95% away from completion. Their projected ending in March. Sales volumes are Ramaphosa plans to split into not favoured by Finance Minister Tito of the nation’s power. If it were to cease Theoretically Eskom should be able costs have more than doubled to at a decade low and continue to fall separate generation, distribution and Mboweni, who is trying to stick to debt operating or the grid were to collapse, to generate about 47,000 megawatts 292.5bn rand ($21.2bn). as the economy stagnates. Increasing transmission businesses under a state ceilings and preserve the country’s sole South Africa’s economy would grind of power, but output fell as low as 3. Where was management? numbers of businesses and middle- holding company, a reorganisation he remaining investment-grade rating. to a halt and many businesses would 26,000 megawatts when several of its class consumers have moved off the says will enable each unit to manage The company is also considering selling be driven into bankruptcy, triggering plants were being serviced or broke The utility went through repeated grid as the price of renewable energy its costs more eff ectively and make it assets and firing as many as 16,000 staff . investor flight and multiple downgrades down. The power crunch peaked in board and management changes drops. Meanwhile, near-bankrupt easier for them to raise funding. The That proposition would meet with fierce to the nation’s fragile credit rating – as February when six of the utility’s units during the almost nine years Jacob municipalities are falling behind in budget announced on February 20 resistance from labour unions, which well as potential social unrest. The unexpectedly went off line, resulting in Zuma was South Africa’s president. paying their bills as customers in includes an almost $5bn cash injection also oppose the breakup plan. ongoing power cuts are already weighing some of the worst outages the country Investigations by lawmakers and the impoverished townships default on over the next three years – the largest 6. What happens if it fails? on South Africa’s rand and bonds, and has ever seen. A lack of money forced nation’s graft ombudsman alleged their debts or steal power through bailout in South Africa’s history – to present a huge risk to smelters, mines the utility to cut back on maintenance that the upheaval was part of an illegal connections. help Eskom service its debt and free The total collapse of Eskom isn’t on and other energy-intensive businesses. Gulf Times 4 Friday, February 22, 2019 BUSINESS

India overhauls oil and gas ‘US, China sketch outlines exploration rules to of deal to end trade war’ lift output Reuters Washington

Reuters New Delhi he United States and China have started to outline commitments Tin principle on the stickiest is- ndia yesterday revamped sues in their trade dispute, marking the rules for future explora- most signifi cant progress yet toward Ition and production of oil ending a seven-month trade war, ac- and gas blocks in its efforts to cording to sources familiar with the ne- attract private investment and gotiations. increase domestic production. The world’s two largest economies India imports four out of have slapped tit-for-tat tariff s on hun- every five barrels of crude oil it dreds of billions of dollars of goods, consumes and is likely to shell slowing global economic growth, skew- out more than $100bn on oil ing supply chains and disrupting manu- purchases in 2018/19. facturing. “The emphasis of the new As offi cials hold high level talks yes- rules is for raising hydrocar- terday and today in Washington, they bon production,” Dharmendra remain far apart on demands made by Pradhan, India’s oil minister US President Donald Trump’s adminis- said in New Delhi. tration for structural changes to China’s Under the new rules, pro- economy. ducers will be given pricing and But the broad outline of what could marketing freedom that is cur- make up a deal is beginning to emerge rently non-existent in natural from the talks, the sources said, as the gas blocks in India. two sides push for an agreement by Explorers will also be given March 1. financial incentives for early That marks the end of a 90-day truce production from their blocks, that Trump and Chinese President Xi Pradhan said. Jinping agreed to when they met in Ar- “Fiscal incentive is also pro- gentina late last year. vided on additional gas pro- Negotiators are drawing up six mem- duction from domestic fields orandums of understanding on struc- over and above normal produc- tural issues: forced technology transfer tion,” a government statement and cyber theft, intellectual property said. rights, services, currency, agriculture Prime Minister Narendra and non-tariff barriers to trade, ac- Modi, who is seeking re-elec- cording to two sources familiar with the tion in a few months, has tar- progress of the talks. geted a 10% reduction to In- At meetings between US and Chinese dia’s dependence on imported offi cials last week in Beijing the two US Trade Representative Robert Lighthizer (4th from left); Treasury Secretary Steven Mnuchin (3rd from left); Commerce Secretary Wilbur Ross; White House economic crude by 2022. sides traded texts and worked on out- adviser Larry Kudlow and White House trade adviser Peter Navarro pose for a photograph with China’s Vice Premier Liu He (4th from right), Chinese vice ministers and However, India’s depend- lining obligations on paper, according senior off icials before the start of US-China trade talks at the White House in Washington yesterday. ence has increased from 78% to one of the sources. in 2014/15 to an estimated 84% The process has become a real trade nifi cant step in getting China to sign up China denies it engages in such prac- Trump’s tariff s. The two sides were dis- “I think they’re trying to move fast so in 2018/19, government data negotiation, the source said, so much so both to broad principles and to specifi c tices. Trump administration offi cials cussing an enforcement mechanism for that doesn’t happen,” he told reporters shows. that at the end of the week the partici- commitments on key issues, he said. also object to non-tariff barriers in Chi- the deal, the source said. in the Oval Offi ce, while not ruling out Pradhan said that state- pants considered staying in Beijing to Several Chinese government sources na, including industrial subsidies, reg- Reuters reported last month that the the possibility of extending the dead- owned companies Oil and Nat- keep working. told Reuters that the two countries have ulations, business licensing procedures, United States was pushing for regular line. ural Gas Corp and Oil India will Instead they agreed to take a few days basically reached a consensus on alle- product standards reviews and other reviews of China’s progress on pledged Lower-level offi cials held a round of be allowed to induct private off and reconvene in Washington. viating the trade imbalances, but there practices that they say keep US goods trade reforms and could reinstate tar- talks in Washington on Tuesday and players to enhance production The sources requested anonymity to were still some diff erences on each out of China or give an unfair advantage iff s if it deems Beijing has violated the Wednesday. from its existing blocks and speak candidly about the talks. other’s “core demands” that they were to domestic fi rms. agreement. They will be joined yesterday by the bring in new technology and Chinese Commerce Ministry spokes- seeking to narrow. US Treasury Secretary Steven The parties also were looking at a top level negotiators, led by US Trade capital. man Gao Feng yesterday declined to “It can be said that we are now in Mnuchin has pushed for China to open 10-item list of ways that China could Representative Robert Lighthizer and The new rules will be largely comment on the MoUs. the sprint phase, and both negotiating its fi nancial services markets to more reduce its trade surplus with the United Chinese Vice Premier Liu He. applicable on 19 basins and The MoUs cover the most complex teams are working towards the goal of foreign fi rms, including credit card gi- States, including by buying agricul- One senior Chinese government of- on future licensing rounds, he issues aff ecting the trading relation- reaching an agreement within the dead- ants Visa and MasterCard, which have tural produce, energy and goods such as fi cial familiar with the talks said that added. ship between the two countries and are line, but some problems are still quite waited years for China to make good on semiconductors, according to two other extending the deadline was an option, India has 26 sedimentary meant, from the US perspective, to end complicated to resolve,” said one Chi- promises to allow them to operate there. sources familiar with the talks. though both sides were trying to reach basins, of which only seven the practices that led Trump to start nese offi cial familiar with the situation. On currency, US offi cials including Time is running short ahead of the agreement before March 1 and any ex- are producing. Encouraging levying duties on Chinese imports in The United States has accused Beijing Mnuchin have warned China against March 1 deadline to resolve the dispute tension would not be too long. private partnership can lead to the fi rst place. of forcing US companies doing business devaluing its yuan to gain a competi- or see US tariff s on $200bn worth of It is possible the talks won’t resolve more discoveries and higher One source cautioned that the talks in China to share their technology with tive advantage after the Chinese cur- Chinese goods rise from 10% to 25%. all the diff erences, and it will be up to production, local broker Emkay could still end in failure. local partners and hand over intellec- rency weakened signifi cantly against Trump said on Tuesday he thought the two heads of state to make a fi nal said in a report. But the work on the MoUs was a sig- tual property secrets. the dollar last year, partly counteracting China had an incentive to move swiftly. decision, the offi cial said. Samsung’s $2,000 Galaxy Fold Adani Enterprises could sparks mixed comments wait up to two years for Bloomberg Seoul Carmichael mine approval This year’s rally in shares of Samsung Electronics Co paused following the highly anticipated debut of its $1,980 foldable Reuters “I would guess, but it is an absolute mess, six Galaxy handset. New Delhi months to two years,” she said. “They (Depart- The world’s largest smartphone maker’s ment of Environment) have said they (Adani) stock was little changed yesterday amid have to go back to the drawing board and draft a mixed comments from analysts and Twitter ndia’s Adani Enterprises might have to wait management plan.” observers regarding the Galaxy Fold’s high up to two years to get two environmental Queensland’s Department of Natural Re- price tag, functionality and sales prospects. I approvals to start construction at its con- sources said yesterday in a statement that Samsung is still up more than 20% in 2019, troversial Carmichael coal mine in Australia, a Chestnutt’s role was “to attract business in- rebounding from a drop of over 20% last Queensland government official told Reuters. vestment to the Queensland resources sec- year. Adani said in November that it would fund tor” and that she was “not authorised to “The phone seems to be pretty good, in the mine and rail project itself, requiring the speak about any specific environmental terms of price and design, as I thought it company to cut the initial plans for the mine to approvals.” would be $3,000,” said Park Sung-shin, around a quarter of its original size, after banks The Queensland Department for Environ- fund manager at KTB Asset Management. buckled to pressure from investors worried ment and Science has said two approvals were “Shares of Samsung and its suppliers are about climate change. required, one relating to a plan to protect an falling just for profit-taking after the event.” Environmental activists have contested the endangered bird species, the black-throated Suppliers’ shares were mixed, with project since it was first proposed eight years finch, and another to identify the source aqui- Samsung Electro- Mechanics Co and ago because of concerns about global warming fer of ground water in the area. Partron Co declining as much as about 3% and its potential impact of its port operations Chestnutt said protests against the mine while Power Logics Co and Elk Corp each on the Great Barrier Reef. were a “hindrance” and that there was a lot of surged at least 5%. misinformation about the mine that needed to The standout was Finetek Co, which The Queensland Department for be challenged. jumped more than 20% for a second- Environment and Science has said two Asked what she considered “misinforma- straight day in Seoul. approvals were required, one relating to a tion”, she said, “I think people just think that Finetek was the first South Korean plan to protect an endangered bird species, coal is dirty and global warming is a major is- company to develop equipment for the black-throated fi nch, and another to sue, and people just like to blame the coal busi- “bonding” components in flexible screens, identify the source aquifer of ground water ness for that, CO2 (carbon dioxide) for that.” according to a spokesman. in the area A spokesman for Adani said the firm expect- The Fold’s technology is impressive ed to move faster on the project in future. enough that Samsung Display targets Carmichael is one of the world’s biggest “We have provided all required information sales of flexible-screen panels to clients in greenfield coal projects in recent years. data and feedback needed for this process to be China, though it may wait about a year or Caoilin Chestnutt, Queensland’s Resources completed and accordingly we expect to have so in order to prevent rival smartphones Samsung’s new Galaxy Fold smartphone which features the world’s first 7.3-inch Infinity Investment Commissioner, commented on the these plans approved in the very near term,” from catching up with its parent’s flagship Flex Display that works with the next-generation 5G networks is seen in San Francisco. approval length in an interview on the sidelines the spokesman said in an emailed response to product too quickly, Samsung Securities The world’s largest smartphone maker’s stock was little changed yesterday amid mixed of the Coaltrans conference in New Delhi late Reuters. said in a report. comments from analysts and Twitter observers regarding the Galaxy Fold’s high price on Wednesday. Adani plans to start producing around 10mn “While shipment volume in absolute terms tag, functionality and sales prospects. Her agency is not responsible for issuing en- tonnes of coal a year and eventually ramp up to is not significant, we believe that its role as vironmental approvals for the project, which is 27.5mn tonnes at the mine. a pioneer in changing smartphone form 1mn foldable phones this year, with total “It’s an important step in opening the regulated by Queensland’s Department for En- The company last week slammed a report factors is noteworthy,” Peter Lee, an analyst shipments for its new GS10 line of devices market of foldable phones,” Lee Dongju, an vironment and Science. on the endangered bird which was reviewed at Citigroup Global Markets Inc wrote in reaching 37mn compared with about 40mn analyst at KTB Investment, wrote in a note. Chestnutt told Reuters she believed environ- by the Queensland government, calling it “an a note. Citi estimates Samsung will ship “historically” for a smartphone series. “The debut is meaningful in itself.” mental clearance for the project could in theory anti-Adani lobbying document, dressed up as be given in the next several months. science.” Gulf Times Friday, February 22, 2019 5 BUSINESS

Imran okays Pak-Turkey Strategic SK Hynix plans to spend Economic Framework

Internews $107bn on 4 chip plants Islamabad Pakistani Prime Minister Imran Reuters Khan approved in principle, Seoul the draft Strategic Economic Framework between Pakistan and Turkey and directed early outh Korea’s SK Hynix Inc finalisation of the framework yesterday said it would spend aiming at transforming the S$107bn building four factories, bilateral relations between the as the memory chip maker seeks to two countries into a broader maintain its competitiveness in the growing strategic economic face of Chinese efforts to become a relationship. leading chipmaking nation. He directed relevant minis- The chip fabrication plants will be tries to vigorously pursue this built on a 4.5mn square metre site framework and put in place south of Seoul beginning 2022, com- strong institutional arrange- plementing two existing domestic ments for its implementation, factories that will receive a separate once finalised. 55tn won ($49bn) investment over The meeting was attended the next decade. by relevant federal ministers The plans for the factories, pro- and secretaries including ducing DRAM and next-generation Finance, Information and chips, come as chipmakers prepare Broadcasting, IPC, Health, for a surge in demand to power new Commerce, Energy, chairman technology such as fifth-generation BOI and others. (5G) communication networks and It was informed that during artificial intelligence, even as a slow- the Prime Minister’s visit to down in smartphone sales kills off a Turkey in the first week of two-year chip boom. January this year, the top “Though there is not enough chip leadership of the two sides demand for autonomous cars now, I had agreed to transform the believe there will be much more de- bilateral relationship into a mand for self-driving vehicles in the long-term strategic trade, next 10 years or as early as in 2023 or investment and economic 2024,” said analyst Kim Young-gun at relationship based on the Mirae Asset Daewoo. principles of reciprocity and “That will create more chip de- fairness. mand for SK Hynix,” as will the com- On his return from Turkey, mercialisation of 5G networks over SK Hynix yesterday said it would spend $107bn building four factories, as the memory chip maker seeks to maintain its competitiveness in the face of Chinese the Prime Minister constituted the next few years, Kim said. efforts to become a leading chipmaking nation. a ten member ministerial com- The plan also intensifies an arms mittee headed by the Finance race between South Korea, the consumer, importing $270bn worth the capital. The chipmaker, which tions,” spokeswoman Olivia Lee told firm Bain Capital which bought the Minister, Asad Umar to finalise world’s biggest exporter of memory in 2017 – more than its total imports has a third plant in the Chinese city Reuters. Shares in SK Hynix were up majority of Toshiba Corp’s memory the proposed framework. chips, and China, which has been of crude oil. of Wuxi, said it had not yet deter- 1.5%, while those of domestic peer chip business last year. Subsequently, two meetings aggressively encouraging chipmak- SK Hynix said the investment mined the increase in production Samsung Electronics Co Ltd – which On Wednesday, people familiar of this Ministerial Committee ing investment to curb reliance on plan, subject to approval from lo- capacity. announced a new smartphone late with the matter told Reuters Bain were chaired by the Finance imports amid a trade spat with the cal authorities, will see over 50 do- “It is indeed a long-term invest- on Wednesday – were almost flat. had chosen banks to manage an ini- Minister and ideas and propos- United States. mestic and foreign suppliers join ment plan and our strategy may SK Hynix was a member of a con- tial public offering of Toshiba Mem- als were received from the China is the world’s largest chip at the site in Yongin, 40 km from change depending on market condi- sortium led by US private equity ory as early as September. 16 relevant ministries of the federal government. After due consideration and examination, proposals were identified, evaluated and Shell, PetroChina spat holds up Australia coal seam gas project incorporated into a whole- some draft strategic economic framework. Reuters said. Shell and PetroChina acquired The project would help unlock the The Finance Minister Melbourne/Singapore the Surat gas resource in a A$3.5bn majority of Arrow’s reserves for both briefed the meeting that it is ($2.5bn) takeover of Arrow in 2010. the domestic and export markets, the an integrated framework that They had expected to reach a final spokeswoman said. has been built keeping in view Royal Dutch Shell and PetroChina are investment decision on the Surat PetroChina said in an email to Reu- the best interest of Pakistan, at loggerheads over gas sales pricing project in 2018, with first production ters that “talks on investment and co- capitalising on mutual comple- at their Arrow Energy joint venture, around 2020, after the Arrow venture operation in Australia’s Arrow (project) mentarities and key advan- holding up development of Australia’s signed a 27-year deal at end-2017 to are still ongoing,” without responding tages of the two economies, biggest coal seam gas resource, three supply gas from Surat to QCLNG. to a question about the pricing dispute. the framework so finalised industry sources said. PetroChina, though, is unhappy PetroChina’s takeover of Arrow with will serve as the overarching PetroChina, the listed arm of China with the price in the sales agreement Shell in 2010 was its first investment in strategic policy framework in- National Petroleum Corp (CNPC), is with QCLNG and the technical plan for Australia’s coal seam gas sector, seen tegrating all facets of existing eager to start developing Arrow’s 5tn developing the gas. This is now holding as a key acquisition at the time, but it bilateral economic coopera- cubic feet (140bn cubic metres) of gas up final approvals, according to three has been a big loss-maker. tion into a single platform. in the Surat Basin in Queensland to turn industry sources familiar with the talks, Over the five years through 2017, the The Economic Framework around loss-making Arrow Energy, one who declined to be named due to the latest year available, PetroChina has seeks to build a strategic of its key overseas assets. sensitivity of the matter. reported losses of 15.5bn yuan ($2.3bn) economic framework with It is at the mercy of venture partner Shell Australia chairman Zoe on its share of Arrow’s earnings. Arrow brotherly country Turkey in a Shell, however, as the Anglo-Dutch Yujnovich said on February 13 that it Energy said in December that it had globally evolving geo strategic oil company is also majority owner of is working through Chinese approval suspended engineering design work environment and through this Arrow’s biggest potential customer, processes right up to senior levels of on a group of proposed expansion instrument tangible measur- Queensland Curtis LNG (QCLNG), a Beijing’s powerful state planner, the wells to reallocate spending to another able results will be pursued. liquefied natural gas plant on an island National Development and Reform area of the project. It will encompass broader off Queensland state. Commission. It deferred all questions about areas of bilateral co-operation “PetroChina, as a 50% stakeholder in Shell still hopes to secure approval timing or investment to Shell and like trade, textiles, investment, Arrow, expects to maximise interests in time to deliver first gas in 2021, PetroChina. industries and production, from the JV versus QCLNG. Yujnovich said. QCLNG is one of three LNG export energy, economy/banking and But for Shell, it may be thinking of “But it is an area we’re going to have plants built in Queensland, all fed by finance, aviation, agriculture, using its operator role at QCLNG to work really carefully on, particularly coal seam gas. QCLNG and one of its social sectors and tourism. protect its interests,” said a Chinese oil the Chinese approval processes, as we rivals are struggling to operate at full Pakistan through this frame- industry executive, who declined to step through the next phase,” she said. capacity as coal seam gas wells have work is not looking for aid but be named due to the sensitivity of the When asked whether gas pricing proven to be less productive than trade, investment and technol- issues. was in contention, a Shell spokes- expected. ogy for enhancing industrial A PetroChina worker inspects a pump jack at an oil field in Tacheng, Xinjiang. Royal PetroChina’s investment is “already woman said that Shell supports both This has led to concerns that QCLNG productivity of its economy. Dutch Shell and PetroChina are at loggerheads over gas sales pricing at their Arrow bleeding and the firm wants to cut Arrow and QGC in developing the Surat may have to shut one of its two There are strong mutual Energy joint venture, holding up development of Australia’s biggest coal seam gas losses, hoping not to make further bad gas project. QGC is the Shell subsidiary processing units by 2025 if more gas complementarities between resource, three industry sources said. investment decisions,” the executive holding the company’s stake in QCLNG. isn’t brought into production. the two economies. ‘Pakistan’s fi scal health deteriorating sharply’

Internews slashed development spending and ments amounted to Rs877bn in fi rst and net lending dropped to a paltry Tax revenue was also down to 5.4% rate. That means the tax revenue Islamabad net lending by a massive 36% to rein six months of the current fi scal year 1% of GDP compared to 1.6% of GDP of GDP this year compared to 5.6% of should have automatically increased in runaway spending in mark up pay- compared to Rs751bn of same period of last year. last year. by at least 11% (over 4% GDP plus over ments and defence, posting an in- of last year, showing an increase of The total expenditure in fi rst half The performance of non-tax rev- 7% infl ation). akistan’s fi scal defi cit crossed crease of 32% and 22% respectively. Rs126bn or 32%. of CFY amounted to Rs3.36tn against enue was no exception that stood at Direct taxes also dropped to 1.8% of 2.7% of gross domestic product The country has never posted such As percentage of GDP, mark up Rs3.18tn of comparable period last 0.6% of GDP in fi rst half of CFY com- GDP during CFY against 1.9% of same P(GDP) in the fi rst half of this fi s- a higher fi scal defi cit since 2010-11 consumed 2.3% compared to 2.1% of year, showing an increase of 5.5%. pared to 1% of GDP same period last time last year. cal year – the highest in eight years when the gap between the govern- GDP the same period last year. The trade off in spending between year. Taxes on goods and properties also despite government’s claims to have ment revenues and expenditure stood The defence expenditure in fi rst non-productive and productive sec- The revenue performance in abso- declined to 2.1% of GDP compared to put the house in order with greater at 2.9% of GDP or Rs490bn in abso- six months of current year stood at tors of economy helped contain FY19 lute terms was no better either. 2.2%. fi scal discipline and austerity. lute terms. Rs479.6bn compared to Rs393bn of total expenditure at 8.7% of GDP For example, total revenue collec- The share of sales tax also dropped Almost all the major fi scal indica- Nevertheless, the country’s fi scal same period last year, showing a jump compared to 8.9% in FY18. tion stood at Rs2.33tn in fi rst half of to 1.8% of GDP from 1.9% last year. tors both on expenditure and revenue defi cit had stood 2.6% in 2012-13 and of 22% or Rs87bn. The current expenditure, however, current year compared to Rs2.38tn of Non-tax revenue also dropped to side showed deterioration in fi rst half 2.5% twice in 2011-12 and 2016-17. Its share in GDP also inched up to remained out of control. last year, showing a reduction of Rs- Rs245bn in fi rst six months compared of the current fi scal year when com- The Ministry of Finance reported 1.2% this year against 1.1% of GDP For example, current expenditure in 58bn or 2.43%. to Rs358bn of same period last year, pared to same period of last year. that defence expenditure and mark up same period last year. FY19 stood at Rs2.98tn compared to This is perhaps a rare phenomenon down by a massive Rs113bn or 32%. According to fi scal operations data payments also posted an upward jour- Unfortunately this led to a cut back Rs2.55tn of FY18, showing an increase that revenue collection has ever been Both the federal and provincial rev- released by the Ministry of Finance, ney as share of the size of the national in the Public Sector Development of Rs44bn or about 18%. lower than previous year. enues contributed to poor tax revenue the fi scal defi cit in absolute terms economy (GDP), leaving little space Programme (PSDP). The PSDP spend- The current expenditure stood at Tax revenue amounted to Rs2.08tn performance. amounted to Rs1.029tn in fi rst half for the government to spend on im- ing in fi rst half of this year plummeted 7.8% of GDP during CFY, signifi cantly in fi rst half of current year compared Provincial revenue slightly in- (July-December 2018) that was al- provements in the living standards of to Rs328bn compared to Rs520bn of higher than 7.1% of GDP last year. to Rs2.03tn, showing a nominal in- creased in absolute terms to Rs188bn most 30% higher than same period of the people in the form of infrastruc- same period last year, showing a re- On the other hand, total revenue crease of Rs55bn or 2.71%. this year against Rs176bn of last year last year – the pre-election spending ture development and social sector duction of 37% or about Rs192bn. collection dropped to just 6.1% of Normally, the tax revenue should while federal revenue inched up to session of PML-N. spending. This is also evident from the fact GDP in fi rst half of current year com- increase every year at the cumulative Rs1.89tn compared to Rs1.85tn of For its part, the PTI government Data showed the total mark up pay- that overall development spending pared to 6.6% of GDP last fi scal. rate of infl ation and economic growth same period last year. Gulf Times 6 Friday, February 22, 2019 BUSINESS Asia markets mostly up on hopes of resolving trade row

AFP was enhanced yesterday as Bloomberg est level against the dollar since July, with if expectations were not met. “There’s a wind down its balance sheet of securi- extended Wednesday’s losses that came Hong Kong News said negotiators were sketching out support also coming from other reports lot of optimism baked into global markets ties and other assets – which helps keep after Fitch warned it could slash Britain’s a number of memorandums of under- that the US is calling in China not to on the outcome of the negotiations and borrowing costs down – but added “it was credit rating owing to the economic hit standing on key issues including intellec- weaken it to off set the impact of tariff s. precisely zero detail on the actual result,” not yet clear” what rate moves “may be from a potential no-deal Brexit. Asian markets mostly rose yesterday on tual property and technology transfer. Tokyo ended up 0.2% at 21,464.23, said Jeff rey Halley, senior market analyst appropriate later this year”. Adding to sterling’s weakness was growing optimism that China and the Without naming sources, the report while Sydney rose 0.7%, Wellington added at OANDA. The minutes showed there could be Prime Minister Theresa May’s failure to US will finally resolve their long-running said no final agreement was expected in 0.6% and Taipei 0.5%. “A suboptimal outcome could make for another hike if price pressures pick up. get a breakthrough in talks with European trade war, with a report saying the two Washington this week but that China’s There were also gains in Mumbai, Bang- a potentially ugly correction in equities Analysts said there was still a possibility Commission President Jean-Claude sides were working on an outline for a top negotiator Liu He would meet Donald kok and Jakarta, while Singapore was flat and currencies in particular.” of more increases in borrowing costs this Juncker on revising their Brexit deal. deal. Trump today. though Seoul and Manila dipped. On Wednesday, minutes from the Fed’s year, after four in 2018. With just over a month until Britain Equities have enjoyed a stellar start to After a cautious start, markets were up While there has been no concrete sign latest policy meeting showed its board “The debate is still focused on whether leaves the bloc, May still has no agree- the year on hopes for the negotiations across Asia yesterday. of progress in the trade talks, Trump has was concerned about the global outlook to tighten or not, and not whether to cut,” ment that she can push through parlia- and expectations the Federal Reserve will Hong Kong rose 0.4% to 28,629.92 but insisted the talks are going “very well” and trade tensions, and said US growth said Lou Crandall, chief economist at ment. ease up on its pace of monetary tighten- Shanghai dipped 0.3% at 2,751.80 after and has indicated he could push back a would “step down” from last year’s rapid Wrightson ICAP LLC. “The risk is tilted in Adding to her woes was news that ing as growth at home and globally slows. fluctuating through the day. deadline for a deal to be done. pace. the direction of more tightening.” three MPs had quit her ruling Conserva- The upbeat mood across the region The yuan was sitting around its strong- However, observers warned of turmoil It also said it expects to continue to On currency markets, the pound tive party.

Indian equities gain on recapitalisation Brexit concerns bite of PSU banks by govt

IANS fi rmation of slow pace in rate Mumbai hikes,” said Vinod Nair, head of research, Geojit Financial Serv- ices. into sterling’s share ndia’s major indices Sensex Nair added that accumulation and Nifty advanced for the is seen in heavyweights after Isecond day yesterday, after the recent fall, while mid- and it broke the nine-session-long small-cap have outperformed. losing streak earlier in the week Undercurrent in the market over easing US-China trade ten- is yet to stabilise due to cau- sion and government’s recapi- tion on global trade and growth, of London FX market talisation of PSU banks. while easing interest rates and The Finance Ministry on reforms by the government will Reuters Wednesday announced capital give impetus to consumption- London infusion of Rs482,390mn in the led stocks. 12 public sector banks, follow- The BSE Sensex closed ing which PSU Bank Nifty index 142.09 points or 0.40% higher s Brexit talks drag on, sterling surged up to 1.6%. at 35,898.35, while the Nifty trading volumes in London, the However, the export-oriented gained 54.40 points or 0.51% at Aworld’s biggest forex trading cen- IT stock closed lower both on 10,789.85. tre, are languishing well below long-term BSE and NSE. Tata Motors led the gains in the averages, with long-term investors and Corp Bank, the biggest recipi- Sensex pack and was followed sovereign players set to stay on the side- ent of the infusion, gained close by Vedanta, Tata Motors(DVR), lines until the crisis is over. to 20%. ONGC and Bajaj Finance, while Trading volumes in the pound have “Market extended gains as Yes Bank, Infosys, Maruti Su- inched higher since the start of 2019 as investor sentiment has been zuki, Coal India and IndusInd Britain’s scheduled March 29 exit from boosted owing to recapitalisa- Bank settled lower, slipping up the European Union approaches. tion of PSU banks and Fed’s af- to 1.50%. But in the past year – a period when virtually every one of the world’s major currencies including the Chinese yuan clocked increased market share – inter- est in trading sterling tailed off . Emerging markets rise That drop in volumes, a clear sign of investors’ reluctance to buy and sell on trade talk optimism British assets, may be contributing to sterling volatility, with many citing re- duced liquidity as a reason why the cur- Reuters 0.5% rise leading gains. Russia and rency seems to have become vulnerable London Turkey made muted gains, while to exaggerated swings on relatively minor South Africa turned lower. headlines in recent weeks. “With a mix of factors including “A lot of people... have increased ex- Emerging market stocks made digestion of the minutes from the posure (in recent weeks) though sterling As Brexit talks drag on, sterling trading volumes in London, the world’s biggest forex trading centre, are languishing well below cautious gains yesterday on Fed and some other expectations volumes are about 40%-50% lower than long-term averages, with long-term investors and sovereign players set to stay on the sidelines until the crisis is over. Trading reports that Sino-US trade negotia- around a US-China trade deal, the pre-Brexit roughly on an average,” said volumes in the pound have inched higher since the start of 2019 as Britain’s scheduled March 29 exit from the European Union tors have started to tackle their market is just bombarded with... Fabrizio Russo, Nomura’s head of foreign approaches. toughest issues, while the cur- conflicting information, just trying to exchange sales for Europe, the Middle rency index made minor moves find its way through,” Maggio said. East and Africa. off shore-traded Chinese currency has currency futures on a platform run by ter Theresa May in parliament indicates as investors digested the US Fed’s Mainland China shares declined He was speaking of turnover on overtaken the euro/pound rate, with a the CME group has jumped to more than she does not have lawmakers’ support January meeting minutes. as Beijing said it will not resort Nomura’s platform. 2.8% share in London versus the dollar, nearly 5,000 contracts this week, from less than six weeks before the March 29 The MSCI index of emerging to aggressive interest rate cuts Dollar/pound remains the second- almost double 2016 levels. 1,500 contracts at the start of February. exit date. Positioning on UK equities too market shares rose 0.25% and to boost growth, with Premier most traded exchange rate in London but The Australian dollar and Japanese yen Of late, expectations of a Brexit solu- has declined; allocations fell last month touched a three week high, after Li Keqiang reiterating that the average daily turnover dropped to $324bn also increased their shares, to 5.1% and tion have fuelled some interest in ster- to the second-biggest underweight on Reuters reported the United States “flood-like” stimulus unleashed in the six-month period ending October 12.2% respectively, the BoE said. ling. record, Bank of America Merrill Lynch’s and China are drawing up six in past downturns would not be 2018, versus $351bn in the previous pe- Instead, more investors have turned to The currency is also considered un- fund manager survey showed. memorandums of understanding resorted to. riod ending April 2018, according to the the derivative markets to hedge sterling dervalued and big institutional investors However, a recent tentative unwinding on structural issues. “The warning from the Chinese latest data from the Bank of England. bets, preferring to take positions here such as sovereign wealth funds remain of large negative short bets against the This could herald the most Premier seemingly indicates that The size of the broader currency mar- rather than the volatile spot market. broadly underweight. pound and the underweight position on significant progress yet toward the authorities are still deeply con- ket has expanded in the past four years Because the pound has become more CLS, a major settler of foreign ex- British assets indicates that any sort of ending the months long trade cerned about the debt problems,” but the pound’s percentage market share susceptible to Brexit headlines, com- change trades says average daily volumes Brexit resolution could trigger a rally. dispute before a March 1 deadline, said Commerzbank analysts. has broadly stagnated and against some panies and some institutional investors in the pound clocked a decent $65bn in Expectations of an economic rebound which US President Donald Trump In currencies, the MSCI index of currencies it has fallen. have taken to the currency forwards and January, up from $64bn in the Decem- and the pound’s undervaluation with re- said he was willing to extend if emerging market currencies was The share of the pound/dollar ex- swaps markets to execute their currency ber quarter and $60bn in the September spect to its peers would also draw in more both sides were close to making a slightly lower. change rate declined to 12.4% in October needs rather than executing them via quarter. participation from mutual funds and complete deal. The Chinese yuan rose to a 2018 from 12.9% earlier while the euro/ cash markets, a head of trading at a Euro- Last year’s average was $62bn. central banks who have so far been on the “Sentiment seems to be more seven-month high, fuelled by trade pound exchange rate, the most suscepti- pean bank in London said. For instance, But pre-Brexit, daily average volumes sidelines, leaving hedge funds to domi- positive than negative although optimism, before slipping slightly. ble to Brexit-related headlines, has seen CLS data shows average daily turnover were as much as $100bn and have fallen nate trading. not 100%,’ said Cristian Maggio, Most other Asian currencies its share decline to 2.5%, according to on sterling swaps rose to $202bn in Janu- 30%-40% across the board barring a “The (recent) rise in volume probably head of emerging markets strat- weakened as the Fed’s minutes BoE data which is based on FX trading in ary 2019 from $188bn a year ago. Similar brief spike in September 2018, CLS data refl ects the tension between a funda- egy at TD Securities. were perceived to be not as dovish London. Before the June 2016 Brexit ref- increases were noticed even in the euro/ shows. mentally undervalued currency and the Asian shares hit a 4-1/2 month as expected, aiding a move higher erendum, euro/pound’s share was 2.6%, pound currency swap markets with a 27% But the struggling economy and Brexit uncertainty surrounding or need to hedge high, with India and Taiwan’s near in the dollar overnight. peaking at 2.9% in October 2016. increase in swaps to $24bn. uncertainty are also capping turnover. the Brexit outcome,” said Erik Norland, a Such has been its decline that even the Average daily turnover on pound/euro A series of defeats for Prime Minis- senior economist at the CME Group. LME copper squeeze will test market’s bull credentials

By Andy Home Friday’s close to $58 backwardation at date has taken place in Shanghai, where and New Orleans. Those cancellations have Slack LME time-spreads over the last cou- but the broader tightness hasn’t dissipated. London Monday’s close, the tightest the spread has stocks are up by 88,432 tonnes since the left LME “live” stocks at just 76,025 tonnes, ple of months mean that metal availability Cash metal was still $20 per tonne higher been since October last year. start of January. not far off the decade-low of 57,650 tonnes hasn’t been tested. than three-month metal as of Wednesday’s The contraction was sharp and brutal This too is normal, seasonal demand registered at the end of October, the last This week’s action may be about to close. Is copper finally about to break up out of its for short position-holders but not entirely weakness being overlaid by the Lunar New occurrence of severe spread tightness. change that. It’s not as if LME time-spreads shouldn’t well-trodden seven-month range? unexpected. Year holidays. Exchange stocks can often flatter to The ferocity of the return to backwarda- be tight, given that available tonnage is so London Metal Exchange (LME) three- Stocks of copper registered with the LME The build in Shanghai has been signifi- deceive. tion on the LME seems to have been in part low. month copper came tantalisingly close on are super low. cantly off set by a fall in CME stocks, down The copper market still remembers the down to one of those large-position clashes If anything, it was January’s contango Wednesday with a mini-surge to $6,426.50, Indeed, global exchange stocks are low, by 36,143 tonnes on the start of January zig-zag in LME stocks over the course of that often enliven spread trading. structure that looked anomalous. challenging the upper band of the $5,725 to which is why a growing number of copper with metal still flying daily out the ware- 2017, a repetitive loop of huge deliveries The LME’s positioning reports showed Borrowing the spreads may have been $6,440 range that has defined the market bulls argue that copper’s robust micro house door. and equally huge departures as two trading there were three significant longs as of the an enticing trade for those believing in cop- since July 2018. dynamics can turn back the bear tide of CME inventory, all of it located in the houses slugged it out. close of business Friday, each holding war- per’s robust micro dynamics but with less The market was regrouping Thursday macro negativity. United States, has been dwindling steadily Should we believe stocks this time? rant and cash positions equivalent to 50% conviction on the macro landscape. around the $6,380 level. The return of time-spread tightness is since May last year. Yes, according to Citi, a prominent bull to 80% of stocks. If so, there may well be more collisions of Glencore set the ball rolling with an an- going to put that argument to the test. Some of the metal may well have in the market with a call for a 10% rally over That’s not quite as sinister as it sounds, multiple dominant longs and short-position nouncement that an “updated mine plan” at The total amount of copper registered migrated to LME warehouses thanks to the next three to six months. remembering that these positions are meas- holders ahead. its Mutanda copper operations in the Demo- with the world’s three exchanges – LME, the massive arbitrage gap that opened up The bank says it was high trucking costs ured against the low LME open tonnage. And backwardation may be here to stay cratic Republic of Congo would reduce Shanghai Futures Exchange and CME – rose between the two exchanges last year. that isolated much of the CME stock. But the number and size of the longs for a while. output by 100,000 tonnes per year. by 60,300 tonnes in January and the first That gap has just snapped shut as a pre- With those costs since abating but US clearly spooked short-position holders. That will test how much copper is really Momentum came from chart dynamics, half of February. viously stranded mountain of metal in CME physical copper premiums remaining high, The “tom-next” spread, the cost of bor- “out there” and available for exchange deliv- specifically a break of the 200-day moving Rising exchange inventory is normal at locations such as Salt Lake City and Tucson metal previously stranded in Arizona and rowing metal for one day, spiked out to a ery. Not much, if bulls such as Citi are right. average on Tuesday, and frantic covering by this time of the year, a seasonal low spot for rapidly diminishes. Utah has been going to consumers.The $20 backwardation on Tuesday morning. Maybe quite a lot, if January’s relaxed options traders against upside exposure. manufacturing activity. Arbitrage may have been behind the lack of inflow at LME locations in the United Things have calmed down a little since spreads weren’t just an anomaly. Another What really primed the move, however, Not only has this year’s rise been highly January deliveries into LME warehouses in States, just 475 tonnes so far this month, then. dilemma for Doctor Copper. was a dramatic tightening in LME time- modest so far, but at 411,000 tonnes total New Orleans but since then LME stocks in and bursts of cancellation activity in Chi- The number of dominant longs had fallen spreads. exchange inventory is 345,000 tonnes the United States have also been falling with cago and New Orleans support such a view. to two as of the close of business Tuesday  Andy Home is a columnist for Reuters. The benchmark cash-to-three-months lower than it was at the same point of 2018. more scheduled to depart, judging by some But exchange stocks are only ever the tip and one of them has diminished in size. The opinions expressed here are those of period flipped from small contango at Moreover, just about all of the increase to sizeable cancellations of metal in Chicago of a larger inventory pool. “Tom-next” has seemingly normalised the author. Gulf Times Friday, February 22, 2019 7 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 16.32 1.62 334,625 Specialities Group Holding C 71.90 0.14 100,810 Arabia Falcon Insurance Co 0.12 0.00 - Amana Cooperative Insurance 15.88 -1.61 1,092,601 Abyaar Real Eastate Developm 16.90 -0.59 1,570,552 Aloula Co 0.53 0.00 - Alabdullatif Industrial Inv 11.52 0.17 56,389 Kgl Logistics Company Kscc 41.10 0.24 337,264 Al-Omaniya Financial Service 0.18 0.00 - Saudi Printing & Packaging C 16.50 -0.72 82,149 Combined Group Contracting 302.00 0.00 69,504 Al-Hassan Engineering Co 0.02 0.00 - Saudi Paper Manufacturing Co 12.14 -0.49 292,674 Jiyad Holding Co Ksc 67.90 0.00 5,300 Al-Fajar Al-Alamia Co 0.75 0.00 - Alinma Bank 24.08 0.17 3,787,672 Boubyan Intl Industries Hold 0.00 0.00 - Al-Anwar Ceramic Tiles Co 0.08 0.00 1,146,400 Almarai Co 55.30 -0.36 140,226 Gulf Investment House Ksc 43.60 -0.23 12,000 Al Suwadi Power 0.10 0.00 - Falcom Saudi Equity Etf 33.40 0.30 171,078 Boubyan Bank K.S.C 554.00 1.09 277,821 Al Sharqiya Invest Holding 0.09 0.00 314,592 United International Transpo 29.00 -0.68 186,625 Ahli United Bank B.S.C 252.00 -1.56 16,787,461 Al Maha Petroleum Products M 0.86 0.47 30,660 Hsbc Amanah Saudi 20 Etf 30.60 0.00 - Osos Holding Group Co 104.00 1.96 250 Al Maha Ceramics Co Saoc 0.20 0.00 450 QATAR Saudi International Petroche 19.90 0.20 284,481 Al-Eid Food Ksc 75.00 0.00 5,000 Al Madina Takaful Co Saoc 0.09 0.00 - Falcom Petrochemical Etf 32.50 0.00 1 Qurain Petrochemical Industr 378.00 1.07 90,464 Al Madina Investment Co 0.03 0.00 17,500 Company Name Lt Price % Chg Volume Walaa Cooperative Insurance 23.84 0.76 240,438 Ekttitab Holding Co Sak 19.30 -0.52 260 Al Kamil Power Co 0.38 0.00 - Bank Al-Jazira 16.06 -0.37 903,499 Real Estate Trade Centers Co 33.50 1.52 11,495 Al Jazerah Services -Pfd 0.55 0.00 - Zad Holding Co 120.00 0.00 200 Al Rajhi Bank 100.80 -0.20 1,945,010 Acico Industries Co Kscc 164.00 -4.65 190,000 Al Jazeera Steel Products Co 0.28 0.00 - Widam Food Co 69.10 -0.58 28,295 Samba Financial Group 37.05 -0.27 696,829 Kipco Asset Management Co 75.30 0.40 508 Al Jazeera Services 0.11 0.00 13,853 Vodafone Qatar 8.20 1.11 775,724 United Electronics Co 59.70 0.51 211,476 National Petroleum Services 1,010.00 -2.88 16,169 Al Izz Islamic Bank 0.09 0.00 300,622 United Development Co 15.35 2.40 1,732,748 Allied Cooperative Insurance 22.80 0.09 129,314 Alimtiaz Investment Group 126.00 0.80 582,100 Al Buraimi Hotel 0.88 0.00 - Salam International Investme 4.74 2.38 7,295 Malath Insurance 12.02 -1.15 787,056 Ras Al Khaimah White Cement 80.00 0.00 55,000 Al Batinah Power 0.09 0.00 12,000 Qatar & Oman Investment Co 5.98 -0.33 60,005 Alinma Tokio Marine 16.24 -0.98 218,446 Kuwait Reinsurance Co Ksc 137.00 0.00 19,684 Al Batinah Hotels 1.13 0.00 - Qatar Navigation 67.20 0.60 9,548 Arabian Shield Cooperative 18.60 -0.11 143,270 Kuwait & Gulf Link Transport 91.90 0.11 46,475 Al Batinah Dev & Inv 0.09 0.00 - Qatar National Cement Co 62.50 1.63 44,513 Savola 32.95 0.30 242,382 Humansoft Holding Co Ksc 3,130.00 -0.63 125,586 Al Anwar Holdings Saog 0.09 0.00 352,862 Qatar National Bank 179.99 2.04 410,543 Wafrah For Industry And Deve 15.20 -0.26 39,957 Automated Systems Co Kscc 118.00 0.00 260 Al Ahlia Insurance Co Saoc 0.34 -0.58 105,500 Qatar Islamic Insurance 55.99 1.73 4,109 Fitaihi Holding Group 10.90 -0.55 73,875 Metal & Recycling Co 47.00 17.50 30 Ahli Bank 0.14 0.73 212,705 Qatar Industrial Manufactur 40.71 -1.55 7,013 Tourism Enterprise Co/ Shams 31.65 -0.31 32,703 Gulf Franchising Holding Co 0.00 0.00 - Acwa Power Barka Saog 0.68 0.00 - Qatar International Islamic 66.82 1.17 47,936 Sahara Petrochemical Co 16.10 0.12 842,777 Al-Enma’a Real Estate Co 34.00 3.03 956,100 Abrasives Manufacturing Co S 0.05 0.00 - Qatari Investors Group 26.50 -1.67 90,111 Herfy Food Services Co 48.60 -0.21 23,330 National Mobile Telecommuni 725.00 -3.33 3,001 A’saff a Foods Saog 0.60 0.00 - Qatar Islamic Bank 149.00 -0.74 62,350 Saudi Ind Investment Group 24.94 0.08 604,715 Unicap Investment And Financ 77.80 3.73 16,305 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Gas Transport(Nakilat) 18.97 0.37 155,290 Salama Cooperative Insurance 16.40 -0.12 312,018 Al Salam Group Holding Co 31.00 -2.82 377,910 Qatar General Insurance & Re 39.20 -4.39 20 Emaar Economic City 9.91 2.69 2,613,450 Al Aman Investment Company 48.50 0.00 260,000 Qatar German Co For Medical 6.64 3.43 40,204 Alahli Takaful Co 28.00 0.00 103,914 Mashaer Holding Co Ksc 71.10 -2.60 15,050 Qatar Fuel Qsc 192.98 1.84 473,575 Anaam International Holding 12.60 0.00 116,609 Manazel Holding 26.40 2.33 59,000 Qatar First Bank 4.10 0.99 499,397 Saudi Telecom Co 100.40 0.20 126,985 Tijara And Real Estate Inves 49.90 0.00 38,525 Qatar Electricity & Water Co 182.00 1.11 24,988 Al Alamiya Cooperative Insur 32.30 -0.46 46,713 Jazeera Airways Co Ksc 734.00 0.55 80,489 Qatar Exchange Index Etf 101.00 1.51 430 Saudi Industrial Services Co 11.46 0.53 121,470 Commercial Real Estate Co 91.50 0.55 339,385 Qatar Cinema & Film Distrib 16.80 1.88 5,450 Al-Ahsa Development Co. 10.04 0.00 108,020 National International Co 63.00 1.61 15,200 Al Rayan Qatar Etf 24.30 1.25 530 National Co For Glass In/The 18.28 0.33 10,590 Taameer Real Estate Invest C 28.50 1.79 4,623,678 Qatar Insurance Co 35.00 0.00 323,877 Dur Hospitality Co 19.76 -0.10 89,838 Gulf Cement Co 66.90 -0.74 200 Ooredoo Qpsc 68.00 -0.77 84,784 Tabuk Cement Co 12.32 -0.81 193,399 Heavy Engineering And Ship B 390.00 0.52 180,286 UAE National Leasing 8.68 -2.25 155,606 Sasco 15.90 -0.38 102,263 National Real Estate Co 78.00 0.00 38,609 Mazaya Qatar Real Estate Dev 7.11 0.14 745,498 Saudi Cement 57.00 0.00 46,475 Al Safat Energy Holding Comp 32.20 -0.92 20,200 Company Name Lt Price % Chg Volume Mesaieed Petrochemical Holdi 17.45 7.06 4,108,532 Aseer Trading Tourism & Manu 9.49 -0.32 60,253 Kuwait National Cinema Co 1,000.00 0.00 613 Al Meera Consumer Goods Co 146.10 0.07 30,145 Nama Chemicals Co 27.75 -0.18 140,245 Danah Alsafat Foodstuff Co 38.00 0.26 4,503 Waha Capital Pjsc 1.38 0.00 1,217,576 Medicare Group 66.00 1.30 51,265 Saudi Arabian Mining Co 55.00 -0.18 112,231 Independent Petroleum Group 405.00 -2.41 201,732 United Insurance Company 2.00 0.00 - Mannai Corporation Qsc 56.87 0.02 787 Yanbu Cement Co 28.30 -0.88 208,612 Kuwait Real Estate Co Ksc 55.80 -0.18 317,850 United Arab Bank Pjsc 1.20 0.00 - Masraf Al Rayan 39.00 0.52 476,598 Saudi Fisheries 66.50 -0.60 161,977 Salhia Real Estate Co Ksc 335.00 0.00 96,500 Union National Bank/Abu Dhab 5.45 0.93 7,114,681 Al Khalij Commercial Bank 11.50 0.09 127,891 Ash-Sharqiyah Development Co 51.10 -0.58 109,205 Gulf Cable & Electrical Ind 373.00 -0.80 10,419 Union Insurance Co 0.90 0.00 - Industries Qatar 134.90 1.89 226,016 Makkah Construction & Devepl 76.30 1.06 44,857 Kuwait Finance House 0.00 0.00 - Union Cement Co 0.00 0.00 - Islamic Holding Group 22.48 4.80 15,545 Al Jouf Cement 8.01 0.38 374,297 Gulf North Africa Holding Co 53.50 0.94 449,000 Umm Al Qaiwain General Inves 0.97 0.00 - Investment Holding Group 5.20 2.36 301,533 Abdullah A.M. Al-Khodari Son 4.74 -2.87 3,944,001 Hilal Cement Co 87.00 6.10 75,445 Sudatel Telecome Group Ltd 0.38 0.26 144,634 Gulf Warehousing Company 41.50 -0.95 3,669 Knowledge Economic City 9.64 1.37 378,565 Osoul Investment Kscc 60.00 0.00 6,739 Sharjah Islamic Bank 1.19 0.00 809,837 Gulf International Services 14.32 -0.42 148,465 Al-Ahlia Cooperative Insuran 11.76 -1.51 360,316 Gulf Insurance Group Ksc 661.00 0.00 1,890 Sharjah Insurance Company 2.84 0.00 - Ezdan Holding Group 13.49 0.37 290,639 Al Rajhi Co For Co-Operative 71.00 1.57 353,905 Umm Al Qaiwain General Inves 69.20 0.00 228 Sharjah Group 1.00 0.00 - Doha Insurance Co 12.25 0.00 - Advanced Petrochemicals Co 55.00 -0.72 41,773 Aayan Leasing & Investment 49.60 0.20 4,082,939 Sharjah Cement & Indus Devel 1.00 0.00 - Doha Bank Qpsc 20.89 3.42 597,385 Al Babtain Power & Telecommu 20.70 0.78 71,567 Alrai Media Group Co Ksc 60.00 0.00 19,750 Ras Al-Khaimah National Insu 2.90 0.00 - Dlala Holding 9.80 -1.71 8,303 Allianz Saudi Fransi Coopera 30.40 0.83 45,532 National Investments Co 92.00 -1.08 155,899 Ras Al Khaimah White Cement 1.08 0.00 - Commercial Bank Pqsc 40.97 -0.05 96,778 Najran Cement Co 8.42 0.48 305,244 Commercial Facilities Co 183.00 0.00 14,856 Ras Al Khaimah Ceramics 1.91 1.06 19,179 Barwa Real Estate Co 39.40 1.03 147,927 Al Tayyar Travel Group 23.56 0.68 843,681 Yiaco Medical Co. K.S.C.C 85.00 0.00 7,800 Ras Al Khaimah Cement Co Psc 0.69 -7.38 5,796 Al Khaleej Takaful Group 9.20 2.00 14,035 National Commercial Bank 52.60 -1.13 734,438 Munshaat Real Estate Project 99.90 1.42 9,597 Ras Al Khaima Poultry 1.90 0.00 - Aamal Co 9.72 1.25 651,415 Noor Financial Investment Co 82.50 5.50 1,367,801 Rak Properties 0.46 0.22 2,449,805 Al Tamdeen Investment Co 309.00 -3.13 7,384 Ooredoo Qpsc 71.00 0.00 - KUWAIT Credit Rating & Collection 23.50 0.00 10 Oman & Emirates Inv(Emir)50% 0.50 0.00 - Ifa Hotels & Resorts Co. K.S 62.00 -1.43 600 National Takaful Company 0.62 0.00 - SAUDI ARABIA National Marine Dredging Co 3.85 0.00 - Company Name Lt Price % Chg Volume Sokouk Holding Co Sak 42.30 1.44 310,570 Warba Bank Kscp 217.00 0.00 2,183,791 National Investor Co/The 0.58 0.00 - Company Name Lt Price % Chg Volume Sultan Center Food Products 52.00 -1.70 3,000 Viva Kuwait Telecom Co 841.00 0.12 4,378 National Corp Tourism & Hote 1.52 0.00 - Kuwait Foundry Co Sak 248.00 -0.80 111,060 Mezzan Holding Co Kscc 409.00 0.49 216,780 National Bank Of Umm Al Qaiw 2.96 0.00 - United Wire Factories Compan 16.20 -0.86 15,507 Kuwait Financial Centre Sak 99.00 0.00 305,020 National Bank Of Ras Al-Khai 4.18 0.00 - Etihad Etisalat Co 18.12 0.22 1,598,605 Ajial Real Estate Entmt 137.00 0.00 190,903 National Bank Of Fujairah 4.80 0.00 - Dar Al Arkan Real Estate Dev 10.22 0.00 2,695,708 Kuwait Finance & Investment 37.50 6.53 1,000 Methaq Takaful Insurance 0.71 0.00 10,000 Alawwal Bank 16.58 0.00 151,431 National Industries Co Ksc 189.00 0.00 538 OMAN Manazel Real Estate Pjsc 0.40 0.51 2,416,446 Rabigh Refining And Petroche 19.56 -0.20 407,258 Kuwait Real Estate Holding C 28.00 0.00 5,239 Invest Bank 2.49 0.00 - Banque Saudi Fransi 37.50 -1.32 180,485 Company Name Lt Price % Chg Volume Securities House/The 51.90 -0.95 211,471 Intl Holdings Co Pjsc 1.05 5.11 19,445,291 Saudi Enaya Cooperative Insu 14.36 -0.69 1,650,391 Voltamp Energy Saog 0.00 Boubyan Petrochemicals Co 927.00 -0.32 65,999 0.21 - Insurance House 0.85 0.00 - Mediterranean & Gulf Insuran 14.92 0.81 321,969 Vision Insurance Saoc 0.00 Al Ahli Bank Of Kuwait 300.00 0.00 3,500 0.14 - Gulf Pharmaceutical Ind Psc 1.59 -6.47 4,116 Saudi British Bank 37.10 -0.40 218,352 United Power/Energy Co- Pref 0.00 Ahli United Bank (Almutahed) 304.00 0.33 76,639 1.00 - Gulf Medical Projects 1.60 0.00 - Red Sea International Co 15.32 -2.17 83,211 United Power Co Saog 0.00 National Bank Of Kuwait 885.00 0.57 2,662,238 3.30 - Gulf Cement Co 0.68 0.00 - Takween Advanced Industries 9.63 -0.52 40,634 United Finance Co 0.00 Commercial Bank Of Kuwait 550.00 3.77 20,596 0.09 - Fujairah Cement Industries 1.25 0.00 - Sabb Takaful 17.38 0.46 40,250 Ubar Hotels & Resorts 0.00 Kuwait International Bank 296.00 -0.67 2,154,870 0.13 - Fujairah Building Industries 1.32 0.00 - Saudi Arabian Fertilizer Co 80.40 -0.37 140,541 Takaful Oman 0.00 Gulf Bank 279.00 1.09 9,778,727 0.14 - Foodco Holding Pjsc 3.71 0.00 - National Gypsum 12.00 0.00 46,560 Taageer Finance 0.00 Al-Massaleh Real Estate Co 35.20 3.53 15,000 0.10 - First Abu Dhabi Bank Pjsc 14.96 1.08 2,423,753 Saudi Ceramic Co 20.40 -0.68 159,007 Sweets Of Oman 0.00 Al Arabiya Real Estate Co 31.00 0.00 147,020 0.55 - Finance House 1.63 0.00 - National Gas & Industrializa 29.65 0.00 25,882 Sohar Power Co 0.00 Kuwait Remal Real Estate Co 46.50 -2.31 600,400 0.11 110 Eshraq Properties Co Pjsc 0.44 -0.68 4,679,079 Saudi Pharmaceutical Industr 27.85 -0.54 45,676 Smn Power Holding Saog 0.00 A’ayan Real Estate Co Sak 63.00 0.00 31,800 0.19 - Emirates Telecom Group Co 17.00 0.47 2,260,930 Thimar 24.26 -0.74 65,724 Shell Oman Marketing - Pref 0.00 Investors Holding Group Co.K 12.00 -0.83 2,017,400 1.05 - Emirates Insurance Co. (Psc) 7.00 0.00 - National Industrialization C 16.44 1.61 1,730,223 Shell Oman Marketing 0.00 Al-Mazaya Holding Co 60.00 -1.32 4,675,893 1.10 2,500 Emirates Driving Company 7.11 0.00 - Batic Investments And Logist 36.50 0.00 66,705 Sharqiyah Desalination Co Sa 0.00 Al-Madar Finance & Invt Co 160.00 1.27 935,601 0.31 - Dana Gas 0.84 0.24 14,157,302 Saudi Electricity Co 16.74 -0.36 581,707 Sembcorp Salalah Power & Wat -2.60 Gulf Petroleum Investment 32.50 0.31 1,314,148 0.15 15,055 Commercial Bank Internationa 0.70 -1.55 500 Saudi Arabia Refineries Co 42.00 -1.87 620,387 Salalah Port Services 0.00 Mabanee Co Sakc 590.00 -1.34 1,410,780 0.60 - Bank Of Sharjah 0.97 0.52 21,109 Arriyadh Development Company 19.00 0.11 121,442 Salalah Mills Co 0.00 Inovest Co Bsc 84.00 0.00 115,618 0.68 - Axa Green Crescent Insurance 0.50 0.00 - Al-Baha Development & Invest 20.76 -0.67 265,944 Salalah Beach Resort Saog 0.00 Al-Deera Holding Co 18.30 0.00 95,324 1.38 - Arkan Building Materials Co 0.47 -5.40 10,500 Saudi Research And Marketing 83.20 -0.72 27,545 Sahara Hospitality 0.00 Mena Real Estate Co 47.40 0.21 3,009,930 3.09 - Alkhaleej Investment 1.36 0.00 - Aldrees Petroleum And Transp 33.75 -0.15 97,156 Renaissance Services Saog 5.10 Amar Finance & Leasing Co 39.00 0.00 750 0.33 36,500 Aldar Properties Pjsc 1.79 1.13 18,001,220 Saudi Vitrified Clay Pipe Co 50.00 0.00 79 Raysut Cement Co 0.00 United Projects For Aviation 545.00 -0.91 110 0.36 30,570 Al Wathba National Insurance 12.76 0.00 - Jarir Marketing Co 146.80 -0.81 109,362 Phoenix Power Co Saoc 0.00 National Consumer Holding Co 30.00 0.00 10,000 0.09 - Al Qudra Holding Pjsc 0.80 0.00 - Arab National Bank 35.25 -0.28 204,086 Packaging Co Ltd 0.00 Amwal International Investme 57.90 -6.61 900 2.21 - Al Khazna Insurance Co 0.25 0.00 - Yanbu National Petrochemical 69.20 -0.57 259,899 Ooredoo -0.73 Equipment Holding Co K.S.C.C 28.50 3.26 86,522 0.54 108,500 Al Fujairah National Insuran 300.00 0.00 - Arabian Cement 25.10 0.20 131,697 Ominvest 0.00 Arkan Al Kuwait Real Estate 76.00 0.00 199,569 0.35 - Al Dhafra Insurance Co. P.S. 3.60 0.00 - Middle East Specialized Cabl 11.98 -0.33 82,474 Oman United Insurance Co -0.72 Gfh Financial Group Bsc 77.60 0.13 622,000 0.28 60,500 Al Buhaira National Insuranc 1.99 0.00 - Al Khaleej Training And Educ 13.40 -0.59 79,339 Oman Telecommunications Co -0.58 Energy House Holding Co Kscp 36.00 -1.37 100 0.68 84,902 Al Ain Ahlia Ins. Co. 37.00 0.00 - Al Sagr Co-Operative Insuran 12.06 -0.17 181,046 Oman Refreshment Co 0.00 Kuwait Co For Process Plant 235.00 2.62 10 1.70 - Agthia Group Pjsc 3.90 -1.02 16,427 Trade Union Cooperative Insu 0.00 0.00 - Oman Qatar Insurance Co 0.00 Al Maidan Dental Clinic Co K 1,080.00 0.00 75 0.11 - Abu Dhabi Ship Building Co 1.00 0.00 - Arabia Insurance Cooperative 17.48 0.46 143,128 Oman Packaging 0.00 National Shooting Company 16.30 0.00 20,010 0.27 - Abu Dhabi Natl Co For Buildi 0.44 0.00 - Saudi Chemical Company 32.90 -0.30 53,323 Oman Oil Marketing Company 0.00 Al-Ahleia Insurance Co Sakp 429.00 -0.23 23,000 1.10 33,750 Abu Dhabi National Takaful C 3.50 0.00 - Fawaz Abdulaziz Alhokair & C 21.08 -0.38 116,728 Oman National Engineering An 0.00 Wethaq Takaful Insurance Co 36.30 0.00 23,520 0.16 - Abu Dhabi National Oil Co Fo 2.25 1.81 1,378,194 Bupa Arabia For Cooperative 87.70 1.62 104,002 Oman Investment & Finance 1.28 Salbookh Trading Co Kscp 39.50 -4.36 2,500 0.08 1,124,990 Abu Dhabi National Insurance 3.75 0.00 - Wafa Insurance 9.50 0.00 - Oman Intl Marketing 0.00 Aqar Real Estate Investments 60.20 0.00 290,250 0.52 - Abu Dhabi National Hotels 2.71 0.00 - Jabal Omar Development Co 33.85 -1.46 763,437 Oman Flour Mills 0.00 Hayat Communications 30.10 11.07 2,600 0.58 - Abu Dhabi National Energy Co 0.97 0.00 - Saudi Basic Industries Corp 123.40 -0.32 1,341,318 Oman Fisheries Co 0.00 Soor Fuel Marketing Co Ksc 116.00 0.00 3,111 0.05 158,539 Saudi Kayan Petrochemical Co 13.66 1.34 2,742,246 Oman Europe Foods Industries 0.00 Tamkeen Holding Co 8.50 0.00 37,029 1.00 - Etihad Atheeb Telecommunicat 5.35 0.00 - Oman Education & Training In 0.00 Burgan Co For Well Drilling 110.00 0.00 120 0.24 - Co For Cooperative Insurance 58.20 0.00 151,826 Oman Chromite 0.00 BAHRAIN Kuwait Resorts Co Kscc 61.80 -1.90 306,650 3.64 - National Petrochemical Co 27.25 -0.37 22,640 Oman Chlorine 0.00 Oula Fuel Marketing Co 116.00 0.00 5,398 0.36 4,647 Gulf Union Cooperative Insur 13.64 -1.02 267,261 Oman Ceramic Company 0.00 Palms Agro Production Co 40.00 0.00 1 0.42 - Company Name Lt Price % Chg Volume Gulf General Cooperative Ins 12.98 -0.61 51,821 Oman Cement Co -0.70 Mubarrad Holding Co Ksc 74.90 1.63 411,725 0.28 174,230 Basic Chemical Industries 22.86 -0.09 44,407 Oman Cables Industry 0.00 Zain Bahrain Bscc 0.09 0.00 20,000 Shuaiba Industrial Co 184.00 0.00 100 0.98 - Saudi Steel Pipe Co 25.50 -1.16 1,373,048 Oman & Emirates Inv(Om)50% 0.00 United Paper Industries Bsc 0.00 0.00 - Aan Digital Services Co 16.70 1.21 407,120 0.10 - Buruj Cooperative Insurance 22.36 0.81 410,264 Natl Aluminium Products 0.00 United Gulf Holding Bsc 0.00 0.00 - First Takaful Insurance Co 44.50 0.00 1,800 0.34 - Mouwasat Medical Services Co 75.60 0.53 59,928 National Real Estate Develop 0.00 Solidarity Bahrain Bsc 0.00 0.00 - Kuwaiti Syrian Holding Co 51.00 2.00 26,000 5.00 - Southern Province Cement Co 41.50 0.00 59,971 National Pharmaceutical 0.00 Seef Properties 0.22 -0.88 226,000 National Cleaning Company 63.40 -0.47 105,899 0.00 - Maadaniyah 17.56 -0.11 55,815 National Mineral Water 0.00 National Bank Of Bahrain Bsc 0.69 0.00 15,520 United Real Estate Company 60.00 3.45 30 0.10 14,554 Yamama Cement Co 14.14 1.00 496,682 National Life & General Insu 0.00 Nass Corp Bsc 0.10 0.00 322,520 Agility 810.00 0.62 1,562,631 0.29 - Jazan Energy And Development 14.00 0.72 153,132 National Gas Co 0.00 Khaleeji Commercial Bank 0.07 -6.67 60,000 Kuwait & Middle East Fin Inv 47.50 -2.06 460,050 0.25 600 Zamil Industrial Investment 18.02 -0.11 37,369 National Finance Co 0.00 Ithmaar Holding Bsc 0.08 -6.25 450,000 Fujairah Cement Industries 57.10 -0.17 5,680 0.14 - Alujain Corporation (Alco) 24.12 -0.90 330,996 National Detergent Co Saog 0.00 Investcorp Bank -$Us 9.70 0.00 5,000 Livestock Transport & Tradng 183.00 0.00 35,100 0.70 - Tabuk Agricultural Developme 10.60 -0.19 187,155 National Biscuit Industries 0.00 Gulf Hotel Group B.S.C 0.00 0.00 - International Resorts Co 20.90 0.00 101 3.92 - United Co-Operative Assuranc 11.94 0.34 164,769 National Bank Of Oman Saog 0.00 Gfh Financial Group Bsc 0.26 0.00 2,010,000 National Industries Grp Hold 169.00 0.60 1,279,051 0.19 170,246 Qassim Cement/The 38.00 -0.65 39,027 Muscat Thread Mills Co 0.00 Esterad Investment Co B.S.C. 0.11 0.00 29,166 Warba Insurance Co 66.00 7.32 15,523 0.08 - Saudi Advanced Industries 13.94 -0.43 79,572 Muscat Insurance Co Saog 0.00 Eskan Bank Realty Income Tr 0.10 0.00 241,000 First Dubai Real Estate Deve 38.00 0.00 10,100 0.80 - Kingdom Holding Co 8.47 -0.35 77,537 Muscat Gases Company Saog -0.51 Bmmi Bsc 0.77 0.00 32,800 Al Arabi Group Holding Co 67.50 0.00 9,995 0.20 15,000 Saudi Arabian Amiantit Co 6.11 -9.75 10,783,653 Muscat Finance 0.00 Bbk Bsc 0.51 0.00 297,000 Mobile Telecommunications Co 452.00 0.44 1,853,629 0.09 5,000 Al Jouf Agriculture Developm 22.32 -1.67 318,466 Muscat City Desalination Co 0.00 Bahrain Telecom Co 0.31 0.65 398,000 Eff ect Real Estate Co 15.00 0.00 373,996 0.12 4,734 Saudi Industrial Development 8.74 -0.79 276,658 Majan Glass Company 0.00 Bahrain National Holding 0.00 0.00 - Tamdeen Real Estate Co Ksc 325.00 0.00 109 0.18 - Riyad Bank 23.54 -0.08 652,147 Majan College 0.00 Bahrain Kuwait Insurance 0.32 0.00 26,000 Al Mudon Intl Real Estate Co 27.00 6.30 6,100 0.19 100 The National Agriculture Dev 27.60 0.00 58,979 Hsbc Bank Oman 0.00 Bahrain Islamic Bank 0.14 0.00 36,500 Kuwait Cement Co Ksc 346.00 0.00 948 0.12 379,030 Halwani Bros Co 45.00 0.78 9,958 Hotels Management Co Interna 0.00 Bahrain Duty Free Complex 0.78 0.00 15,000 Sharjah Cement & Indus Devel 85.00 0.00 5,000 1.25 - Arabian Pipes Co 10.64 0.38 198,527 Gulf Stone 0.00 Bahrain Commercial Facilitie 0.80 0.00 34,000 Kuwait Portland Cement Co 1,235.00 0.41 133,728 0.12 - Eastern Province Cement Co 24.34 -0.41 718,100 Gulf Mushroom Company 0.00 Arab Banking Corp Bsc-$Us 0.45 0.00 121,355 Educational Holding Group 338.00 0.00 284,210 0.31 - Al Gassim Investment Holding 12.18 -1.14 901,001 Gulf Investments Services 1.79 Aluminium Bahrain Bsc 0.41 1.98 119,500 Asiya Capital Investments Co 34.20 0.29 30,374 0.06 554,409 Filing & Packing Materials M 33.30 -0.75 7,997 Gulf Invest. Serv. Pref-Shar 0.00 Albaraka Banking Group 0.34 7.94 775,730 Kuwait Investment Co 124.00 -0.80 349,860 0.11 - Saudi Cable Co 48.40 2.11 776,476 Gulf International Chemicals 0.00 Al-Salam Bank 0.09 0.00 523,269 Burgan Bank 302.00 3.78 21,025,464 0.16 - Tihama Advertising & Public 46.50 1.31 384,025 Gulf Hotels (Oman) Co Ltd 0.00 Ahli United Bank B.S.C 0.83 -0.60 2,368,983 Kuwait Projects Co Holdings 194.00 2.11 83,028 9.50 - Saudi Investment Bank/The 19.30 -0.41 45,162 Global Fin Investment -5.88 Al Madina For Finance And In 23.00 -1.71 2,506,990 0.08 12,506 Astra Industrial Group 15.96 0.38 37,745 Galfar Engineering&Contract 5.63 Kuwait Insurance Co 400.00 0.00 46,200 0.08 7,248,675 Saudi Public Transport Co 14.98 -0.66 387,199 Galfar Engineering -Prefer 0.00 Al Masaken Intl Real Estate 62.20 0.00 1,005 0.39 - Taiba Holding Co 28.20 -1.05 98,517 Financial Services Co. 0.00 Intl Financial Advisors 22.50 -1.75 940,399 0.18 - Saudi Industrial Export Co 82.90 -0.24 200,555 Financial Corp/The 0.00 First Investment Co Kscc 37.10 -1.07 8,875,655 0.10 - Saudi Real Estate Co 12.58 -2.18 792,281 Dhofar Tourism 0.00 Al Mal Investment Company 18.60 0.00 88,002 0.49 - Saudia Dairy & Foodstuff Co 101.80 -0.97 29,535 Dhofar Poultry 0.00 Bayan Investment Co Kscc 45.40 0.00 700 0.18 - National Shipping Co Of/The 30.10 -0.17 282,832 Dhofar Intl Development 0.00 Egypt Kuwait Holding Co Sae 400.00 0.00 154,453 0.29 - Methanol Chemicals Co 9.78 0.82 640,533 Dhofar Insurance 0.00 Coast Investment Development 39.00 -2.01 811,890 0.17 - Chubb Arabia Cooperative Ins 18.60 -0.21 36,086 Dhofar Generating Co Saoc 0.00 Privatization Holding Compan 61.60 1.82 760,573 0.20 48,100 Mobile Telecommunications Co 9.17 -0.33 1,422,905 Dhofar Fisheries & Food Indu 0.00 Injazzat Real State Company 89.50 0.00 1,600 1.28 - Saudi Arabian Coop Ins Co 11.38 -1.04 154,266 Dhofar Cattlefeed 0.00 Kuwait Cable Vision Sak 13.00 0.00 21 0.07 - Axa Cooperative Insurance 23.00 -0.17 75,638 Dhofar Beverages Co 0.00 Sanam Real Estate Co Kscc 33.40 0.00 21 0.26 - Alsorayai Group 13.10 -2.67 471,131 Construction Materials Ind 0.00 Ithmaar Holding Bsc 23.30 1.30 2,300,860 0.03 - Bank Albilad 29.30 0.00 332,442 Computer Stationery Inds 0.00 Aviation Lease And Finance C 290.00 2.11 159,535 0.26 - Al-Hassan G.I. Shaker Co 8.33 -0.24 179,144 Bankmuscat Saog -0.49 Arzan Financial Group For Fi 29.20 -2.99 887,270 0.41 375,590 Wataniya Insurance Co 23.56 -0.59 60,008 Bank Sohar 0.00 Ajwan Gulf Real Estate Co 17.40 0.58 374,981 0.11 276,075 Abdullah Al Othaim Markets 67.00 0.30 36,694 Bank Nizwa 0.00 Kuwait Business Town Real Es 46.60 -2.51 491,000 0.09 275,623 Hail Cement 8.30 0.00 226,157 Bank Dhofar Saog-Rts 0.00 Future Kid Entertainment And 98.50 0.00 20,000 0.00 - Saudi Re For Cooperative Rei 8.02 0.63 239,448 Bank Dhofar Saog 0.14 0.00 867,000 LATEST MARKET CLOSING FIGURES Gulf Times 8 Friday, February 22, 2019 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 25,850.62 -103.82 Apple Inc 171.30 -0.42 1,467,750 S&P 500 Index 2,774.14 -10.56 American Express Co 106.53 -0.23 149,335 Nasdaq Composite Index 7,445.24 -43.83 Boeing Co/The 418.15 -0.81 141,574 S&P/Tsx Composite Index 15,990.08 -41.16 Caterpillar Inc 140.09 -0.16 279,420 Mexico Bolsa Index 43,188.22 +10.22 Cisco Systems Inc 49.28 -0.71 1,144,653 Brazil Bovespa Stock Idx 96,278.35 -266.46 Chevron Corp 119.04 -1.03 238,237 Ftse 100 Index 7,149.09 -79.53 Walt Disney Co/The 113.94 0.23 365,053 Cac 40 Index 5,186.40 -9.55 Dowdupont Inc 55.50 -1.32 730,403 Dax Index 11,404.03 +2.06 Goldman Sachs Group Inc 197.01 -0.80 100,139 Ibex 35 Tr 9,179.30 -1.80 Home Depot Inc 192.10 0.13 155,952 Nikkei 225 21,464.23 +32.74 Intl Business Machines Corp 137.68 -0.23 136,292 Japan Topix 1,613.50 +0.03 Intel Corp 51.38 -0.02 958,537 Hang Seng Index 28,629.92 +115.87 Johnson & Johnson 134.84 -1.11 514,847 All Ordinaries Indx 6,214.62 +38.86 Jpmorgan Chase & Co 105.35 -0.32 599,011 Nzx All Index 1,611.15 +8.09 Coca-Cola Co/The 45.50 0.89 1,071,916 Bse Sensex 30 Index 35,898.35 +142.09 Mcdonald’s Corp 182.56 1.15 233,655 Nse S&P Cnx Nifty Index 10,789.85 +54.40 3M Co 208.50 -0.01 67,532 Straits Times Index 3,277.91 -0.47 Merck & Co. Inc. 79.84 0.52 514,809 Karachi All Share Index 29,019.68 -83.85 Microsoft Corp 108.00 0.79 1,474,545 Jakarta Composite Index 6,537.77 +24.98 Nike Inc -Cl B 83.48 -1.60 565,066 Pfizer Inc 42.19 -0.02 878,423 Procter & Gamble Co/The 99.41 0.13 420,148 Travelers Cos Inc/The 129.46 -0.22 60,573 TOKYO Unitedhealth Group Inc 267.35 -0.80 164,565 United Technologies Corp 126.73 -1.32 165,995 Company Name Lt Price % Chg Volume Visa Inc-Class A Shares 143.52 -0.84 501,783 Sumitomo Realty & Developmen 4,254.00 0.05 412,656 Verizon Communications Inc 56.38 1.11 741,531 Sumitomo Metal Mining Co Ltd 3,301.00 3.09 474,769 Walgreens Boots Alliance Inc 70.97 -1.16 371,061 Orix Corp 1,620.00 -1.16 54,211,635 Walmart Inc 98.92 -0.96 376,509 Daiwa Securities Group Inc 583.40 0.60 1,105,047 Exxon Mobil Corp 77.90 -0.80 540,567 Softbank Group Corp 10,230.00 -1.63 104,786 Mizuho Financial Group Inc 175.50 -0.40 655,668 Central Japan Railway Co 24,890.00 0.22 72,477 FTSE 100 Nitori Holdings Co Ltd 14,170.00 0.85 1,449,919 T&D Holdings Inc 1,375.50 0.07 1,047,177 Company Name Lt Price % Chg Volume Toyota Motor Corp 6,731.00 -0.87 1,260,850 Hoya Corp 6,813.00 0.64 595,593 Anglo American Plc 1,990.60 -1.46 2,787,735 Sumitomo Mitsui Trust Holdin 4,219.00 0.21 1,338,549 Associated British Foods Plc 2,307.00 -0.94 424,427 Japan Tobacco Inc 2,891.50 2.28 132,997 Admiral Group Plc 2,179.00 -0.23 168,232 Osaka Gas Co Ltd 2,255.00 -0.13 971,488 Ashtead Group Plc 2,037.00 0.49 928,851 A view of the trading room at the Frankfurt Stock Exchange. The DAX 30 ended 0.2% up at 11,423.28 points yesterday. Sumitomo Electric Industries 1,534.50 -1.06 22,738,037 Antofagasta Plc 925.20 -1.09 1,300,310 Ono Pharmaceutical Co Ltd 2,280.00 -0.02 3,253,336 Auto Trader Group Plc 463.40 0.39 1,280,893 Ajinomoto Co Inc 1,689.00 1.02 884,479 Aviva Plc 421.70 -0.85 2,410,470 Mitsui Fudosan Co Ltd 2,682.50 0.09 243,018 Astrazeneca Plc 6,082.00 -0.99 853,090 Daikin Industries Ltd 12,250.00 -0.81 257,312 Bae Systems Plc 461.10 -8.58 8,750,735 Toray Industries Inc 785.60 -0.06 326,163 Barclays Plc 160.74 -0.09 33,401,683 Bridgestone Corp 4,414.00 0.39 10,804,644 British American Tobacco Plc 2,821.00 -1.03 1,414,847 European stock markets tread Sony Corp 5,340.00 1.25 147,088 Barratt Developments Plc 571.20 0.00 1,795,937 Astellas Pharma Inc 1,688.50 -1.08 2,710,701 Bhp Group Plc 1,775.20 -2.65 4,630,118 Jxtg Holdings Inc 552.60 -2.78 222,423 Berkeley Group Holdings/The 3,816.00 -0.39 103,283 Nippon Steel & Sumitomo Meta 2,023.50 -0.32 618,070 British Land Co Plc 581.20 1.29 1,088,239 Suzuki Motor Corp 5,705.00 -1.26 950,658 Bunzl Plc 2,527.00 0.48 252,542 water as trade talks play out Nippon Telegraph & Telephone 4,690.00 -0.17 1,013,970 Bp Plc 535.90 -0.65 12,244,482 Sompo Holdings Inc 4,176.00 -1.09 159,063 Burberry Group Plc 1,925.50 -1.13 453,017 Daiwa House Industry Co Ltd 3,426.00 1.09 5,978,376 Bt Group Plc 230.10 0.33 12,767,944 warning that it could slash Britain’s ing place, in some ways refl ecting the Komatsu Ltd 2,836.50 3.79 159,412 AFP Coca-Cola Hbc Ag-Di 2,633.00 -0.68 412,656 credit rating owing to the economic hit weariness and scepticism that comes West Japan Railway Co 8,295.00 0.52 2,254,590 London Carnival Plc 4,363.00 0.28 474,769 from a potential no-deal Brexit. with each meeting.” Murata Manufacturing Co Ltd 17,560.00 0.49 1,255,365 Centrica Plc 119.15 -13.16 54,211,635 Kansai Electric Power Co Inc 1,656.50 -0.15 5,794,650 Wall Street shares were lower in the Global equities have enjoyed a stel- Compass Group Plc 1,726.50 -0.26 1,105,047 Denso Corp 4,800.00 -0.68 95,268,676 urozone stock markets gave a late New York morning trade, weighed lar start to the year on hopes for the Croda International Plc 5,048.00 -0.71 104,786 Dai-Ichi Life Holdings Inc 1,707.50 0.15 396,223 lacklustre performance yester- down by “a mixed bag of domestic eco- negotiations and expectations the Crh Plc 2,410.00 -0.12 655,668 Mazda Motor Corp 1,289.50 -0.04 634,839 day after gains in much of Asia as nomic and earnings reports”, according Federal Reserve will ease up on its pace Dcc Plc 6,600.00 -1.42 72,477 E Mitsui & Co Ltd 1,796.00 -0.39 2,128,338 Diageo Plc 3,017.00 0.08 1,449,919 traders eyed talks between China and to Charles Schwab analysts. of monetary tightening as growth at Kao Corp 8,407.00 0.95 798,224 Direct Line Insurance Group 351.00 -0.40 1,047,177 the US they hope will fi nally resolve a “US stocks are cooling off from the home and globally slows. Sekisui House Ltd 1,633.00 0.34 4,764,698 Evraz Plc 529.40 -1.42 1,260,850 Oriental Land Co Ltd 12,325.00 0.33 3,691,426 long-running trade war. sharp rally since the December lows, The upbeat mood was enhanced Experian Plc 2,031.00 0.69 595,593 Secom Co Ltd 9,587.00 0.71 4,325,114 Frankfurt was a touch higher at the with a plethora of economic data ap- yesterday as Bloomberg News said US Easyjet Plc 1,297.00 -1.74 1,338,549 Tokio Marine Holdings Inc 5,571.00 0.02 214,158 close and Paris ended fl at, while Lon- pearing to foster global growth con- and Chinese negotiators were sketch- Ferguson Plc 5,356.00 -0.70 132,997 Aeon Co Ltd 2,399.00 0.38 190,615 ing out a number of memoranda of Fresnillo Plc 996.60 -3.01 971,488 don lost nearly 1%, penalised by a cerns and counter lingering US-China Fanuc Corp 19,415.00 0.03 860,891 Glencore Plc 300.45 -3.22 22,738,037 strong pound, which tends to weigh on trade optimism,” they said. understanding on key issues including Daito Trust Construct Co Ltd 15,725.00 0.26 86,827 Glaxosmithkline Plc 1,536.20 -2.40 3,253,336 the earnings of multinationals, and by In Asia, stock markets mainly intellectual property and technology Otsuka Holdings Co Ltd 4,569.00 0.79 1,155,305 Gvc Holdings Plc 640.00 -1.39 884,479 poorly-received results including from climbed on a report that Beijing and transfer. Resona Holdings Inc 512.00 0.49 566,647 Hikma Pharmaceuticals Plc 1,642.00 -1.88 243,018 Asahi Kasei Corp 1,201.00 -1.03 2,161,610 British Gas owner Centrica. Washington were working on an out- Without naming sources, the report Hargreaves Lansdown Plc 1,688.50 0.24 257,312 Kirin Holdings Co Ltd 2,540.00 -1.78 894,649 London’s FTSE 100 closed 0.9% line for a deal. said no fi nal agreement was expected Halma Plc 1,488.00 -0.87 326,163 Mitsubishi Ufj Financial Gro 587.40 0.07 23,255,125 down at 7,167.39 points, Frankfurt’s Both sides returned to the bargain- in Washington this week but that Chi- Hsbc Holdings Plc 625.60 -2.77 10,804,644 Marubeni Corp 818.90 -0.28 2,883,993 Hiscox Ltd 1,600.00 0.95 147,088 DAX 30 ended 0.2% up at 11,423.28 ing table yesterday, with just eight days na’s top negotiator Liu He would meet Mitsubishi Chemical Holdings 832.90 -0.16 1,831,250 Intl Consolidated Airline-Di 644.40 -0.86 2,710,701 points and Paris’ CAC 40 fi nished fl at remaining in a self-imposed deadline US President Donald Trump today. Fast Retailing Co Ltd 51,090.00 1.49 3,120,573 Intercontinental Hotels Grou 4,541.50 -0.08 222,423 at 5,196.11 points, while the EURO to avoid an escalation in the trade war. While there has been no concrete Ms&Ad Insurance Group Holdin 3,368.00 0.21 1,863,937 3I Group Plc 941.80 -0.93 618,070 STOXX 50 gained 0.1% at 3,263.70 “Markets look towards the US-Chi- sign of progress in the trade talks, Kubota Corp 1,569.50 2.11 928,294 Imperial Brands Plc 2,595.50 -4.35 950,658 Seven & I Holdings Co Ltd 4,989.00 0.26 1,478,714 points. na trade talks for direction,” said IG Trump has insisted the talks are going Informa Plc 720.80 0.81 1,013,970 Inpex Corp 1,146.00 0.09 1,121,623 The pound rose against both the analyst Joshua Mahony. “very well” and has indicated he could Intertek Group Plc 5,076.00 -2.31 159,063 Sumitomo Mitsui Financial Gr 4,045.00 -0.86 2,481,783 dollar and the euro after recovering “Markets are becoming less sensi- push back a deadline for a deal to be Itv Plc 132.50 -1.82 5,978,376 Ana Holdings Inc 4,121.00 -0.67 12,737,533 Johnson Matthey Plc 3,138.00 -2.03 159,412 from early weakness prompted by Fitch tive to the fact that these talks are tak- done. Mitsubishi Electric Corp 1,428.00 -0.59 107,919 Kingfisher Plc 238.10 -1.45 2,254,590 Honda Motor Co Ltd 3,103.00 2.31 621,365 Land Securities Group Plc 879.80 1.22 1,255,365 Tokyo Gas Co Ltd 3,051.00 -0.29 1,470,943 Legal & General Group Plc 270.40 -0.44 5,794,650 HONG KONG HONG KONG Tokyo Electron Ltd 15,805.00 0.89 225,138 Lloyds Banking Group Plc 60.09 -1.70 95,268,676 Panasonic Corp 1,043.50 0.00 10,621,931 London Stock Exchange Group 4,513.00 0.11 396,223 Fujitsu Ltd 7,501.00 -0.23 4,230,945 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Micro Focus International 1,858.50 -0.08 634,839 East Japan Railway Co 10,630.00 0.09 465,035 Marks & Spencer Group Plc 290.00 -0.58 2,128,338 Ck Hutchison Holdings Ltd 81.80 -0.49 5,398,804 Citic Ltd 11.94 0.84 9,806,040 Itochu Corp 2,026.50 -0.20 1,651,692 Mondi Plc 1,869.50 -0.85 798,224 Hang Lung Properties Ltd 18.90 -0.21 12,087,320 Galaxy Entertainment Group L 56.95 4.11 20,461,340 Fujifilm Holdings Corp 4,980.00 -1.09 1,251,464 Melrose Industries Plc 169.10 -1.80 4,764,698 Ck Infrastructure Holdings L 65.35 1.71 3,599,299 Wh Group Ltd 7.63 2.01 82,983,648 Yamato Holdings Co Ltd 2,973.00 -0.49 41,828 Wm Morrison Supermarkets 229.15 0.84 3,691,426 Hengan Intl Group Co Ltd 63.15 1.69 3,121,636 Hong Kong & China Gas 17.92 0.34 14,607,161 Chubu Electric Power Co Inc 1,786.00 0.65 1,200,978 National Grid Plc 849.90 0.26 4,325,114 China Shenhua Energy Co-H 19.62 2.19 27,942,430 Bank Of Communications Co-H 6.59 0.46 25,339,798 Mitsubishi Estate Co Ltd 1,909.00 -0.26 1,391,890 Nmc Health Plc 2,772.00 -0.36 214,158 Cspc Pharmaceutical Group Lt 13.22 2.80 43,459,342 China Petroleum & Chemical-H 6.81 0.59 55,156,609 Mitsubishi Heavy Industries 4,437.00 2.00 691,634 Next Plc 4,972.00 -0.68 190,615 Hang Seng Bank Ltd 189.80 0.74 2,102,106 Hong Kong Exchanges & Clear 264.00 1.54 8,224,236 Shiseido Co Ltd 7,174.00 -0.57 317,138 Ocado Group Plc 897.60 -3.75 860,891 China Resources Land Ltd 30.65 2.51 16,780,068 Bank Of China Ltd-H 3.60 0.00 234,147,758 Shionogi & Co Ltd 7,012.00 0.23 7,967,457 Paddy Power Betfair Plc 6,050.00 -1.63 86,827 Ck Asset Holdings Ltd 66.50 0.61 5,264,566 Hsbc Holdings Plc 64.90 -1.74 34,907,228 Recruit Holdings Co Ltd 3,018.00 -0.23 1,580,065 Prudential Plc 1,529.50 -0.42 1,155,305 Sino Biopharmaceutical 6.52 1.72 58,156,500 Power Assets Holdings Ltd 53.20 0.00 5,134,650 Japan Airlines Co Ltd 4,063.00 -0.17 3,631,544 Persimmon Plc 2,446.00 0.20 566,647 Henderson Land Development 44.90 0.11 3,863,779 Mtr Corp 45.00 0.90 3,358,289 Nitto Denko Corp 5,943.00 -1.95 987,284 Pearson Plc 889.60 -0.31 2,161,610 Aia Group Ltd 75.80 0.07 20,946,973 China Overseas Land & Invest 29.00 0.69 19,817,600 Kddi Corp 2,701.50 -0.63 1,018,158 Reckitt Benckiser Group Plc 5,957.00 -1.13 894,649 Ind & Comm Bk Of China-H 5.96 0.51 237,506,237 Tencent Holdings Ltd 343.20 0.65 11,802,629 Rakuten Inc 838.00 4.75 29,703,342 Royal Bank Of Scotland Group 254.20 -1.47 23,255,125 Want Want China Holdings Ltd 6.70 1.82 21,381,481 China Unicom Hong Kong Ltd 9.49 1.06 36,552,331 Kyocera Corp 6,243.00 0.05 1,695,364 Royal Dutch Shell Plc-A Shs 2,402.00 -1.07 2,883,993 Sun Hung Kai Properties 134.70 0.22 3,247,600 Link Reit 89.60 -0.50 6,204,645 Nissan Motor Co Ltd 948.60 0.06 939,621 Royal Dutch Shell Plc-B Shs 2,413.50 -1.11 1,831,250 New World Development 13.24 2.00 23,743,164 Sino Land Co 14.72 -0.67 6,125,238 Relx Plc 1,760.50 4.48 3,120,573 Geely Automobile Holdings Lt 15.28 2.41 78,782,529 Swire Pacific Ltd - Cl A 93.85 1.62 2,858,638 Rio Tinto Plc 4,375.00 -1.66 1,863,937 SENSEX Rightmove Plc 478.50 0.10 928,294 Sands China Ltd 39.40 4.93 21,473,552 GCC INDICES Rolls-Royce Holdings Plc 980.20 -0.83 1,478,714 Wharf Real Estate Investment 56.00 0.18 2,805,961 Rsa Insurance Group Plc 539.00 -0.48 1,121,623 Company Name Lt Price % Chg Volume Clp Holdings Ltd 96.35 0.73 2,516,468 Indices Lt Price Change Rentokil Initial Plc 342.60 -0.64 2,481,783 Country Garden Holdings Co 10.58 0.57 44,900,039 Doha Securities Market Adani Ports And Special Econ 355.75 0.28 4,089,677 10,191.50 +113.68 Sainsbury (J) Plc 232.80 -0.72 12,737,533 Aac Technologies Holdings In 53.25 2.70 9,770,786 Saudi Tadawul Asian Paints Ltd 1,397.80 0.06 677,142 8,547.48 -19.76 Schroders Plc 2,685.00 0.79 107,919 Shenzhou International Group 97.65 -0.20 2,861,456 Kuwait Stocks Exchange Axis Bank Ltd 697.20 -0.45 6,674,353 4,791.09 +14.55 Sage Group Plc/The 656.80 -0.88 621,365 Ping An Insurance Group Co-H 79.00 0.38 28,376,326 Bahrain Stock Exchage Bajaj Finance Ltd 2,654.70 1.86 1,139,823 1,404.84 -0.45 Segro Plc 639.60 0.47 1,470,943 China Mengniu Dairy Co 25.10 -3.65 15,702,491 Oman Stock Market Bharti Airtel Ltd 309.90 0.29 5,232,493 4,055.57 +1.63 Smurfit Kappa Group Plc 2,230.00 -2.02 225,138 Sunny Optical Tech 94.35 4.72 13,552,563 Abudhabi Stock Market Bharti Infratel Ltd 312.55 -1.78 3,996,262 5,098.12 +37.22 Standard Life Aberdeen Plc 234.95 0.09 10,621,931 Boc Hong Kong Holdings Ltd 32.55 -0.76 11,511,132 Dubai Financial Market Bajaj Auto Ltd 2,813.95 1.41 281,964 2,633.69 +1.61 Ds Smith Plc 335.90 -3.89 4,230,945 China Life Insurance Co-H 20.60 0.00 75,524,538 Bajaj Finserv Ltd 6,169.10 2.84 230,121 Smiths Group Plc 1,442.50 -1.33 465,035 Bharat Petroleum Corp Ltd 335.30 -1.70 4,676,884 Scottish Mortgage Inv Tr Plc 489.60 -1.57 1,651,692 Cipla Ltd 545.50 0.81 1,093,548 Smith & Nephew Plc 1,428.50 -0.66 1,251,464 Coal India Ltd 213.70 -0.58 4,081,685 Spirax-Sarco Engineering Plc 6,760.00 -0.15 41,828 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The Dr. Reddy’s Laboratories 2,586.30 2.42 1,310,397 Sse Plc 1,178.50 -1.01 1,200,978 Eicher Motors Ltd 20,447.45 -0.40 67,021 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Standard Chartered Plc 611.40 -0.88 1,391,890 Gail India Ltd 331.70 0.61 7,308,931 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank St James’s Place Plc 954.40 0.72 691,634 Grasim Industries Ltd 747.80 2.34 1,721,402 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Severn Trent Plc 2,008.00 -0.79 317,138 Hcl Technologies Ltd 1,053.40 -0.43 1,301,577 this data.” Tesco Plc 226.00 -0.62 7,967,457 Housing Development Finance 1,891.45 1.12 1,578,842 Tui Ag-Di 824.20 -2.25 1,580,065 Hdfc Bank Limited 2,115.90 0.36 1,315,386 Taylor Wimpey Plc 166.80 -0.18 3,631,544 Hero Motocorp Ltd 2,641.25 0.67 736,959 Unilever Plc 4,250.00 0.33 987,284 Hindalco Industries Ltd 194.40 0.73 6,498,528 CURRENCIES United Utilities Group Plc 842.00 -1.22 1,018,158 Hindustan Petroleum Corp 222.95 0.91 3,720,006 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Vodafone Group Plc 140.64 -1.22 29,703,342 DINAR DINAR Hindustan Unilever Ltd 1,754.70 1.22 1,225,418 John Wood Group Plc 531.40 -2.10 1,695,364 Icici Bank Ltd 351.30 1.77 18,631,331 Wpp Plc 843.00 -0.66 939,621 Indiabulls Housing Finance L 683.95 6.01 12,819,378 Whitbread Plc 4,900.00 -0.75 333,408 Indusind Bank Ltd 1,471.55 -0.62 2,297,058 Infosys Ltd 733.45 -0.98 7,202,786 Indian Oil Corp Ltd 131.10 1.39 5,912,967 TOKYO Itc Ltd 275.05 -0.29 6,995,026 Jsw Steel Ltd 277.05 1.09 8,238,650 Kotak Mahindra Bank Ltd 1,289.15 -0.05 1,819,094 Company Name Lt Price % Chg Volume Larsen & Toubro Ltd 1,284.10 0.59 2,392,129 Hitachi Ltd 3,479.00 -0.09 2,787,735 Mahindra & Mahindra Ltd 634.20 0.10 2,813,880 Takeda Pharmaceutical Co Ltd 4,440.00 -1.16 424,427 Maruti Suzuki India Ltd 6,801.55 -0.71 722,938 Jfe Holdings Inc 1,945.50 0.57 168,232 Ntpc Ltd 136.45 -0.55 3,932,612 Sumitomo Corp 1,640.50 -0.88 928,851 Oil & Natural Gas Corp Ltd 146.95 2.01 13,876,243 Canon Inc 3,219.00 -0.16 1,300,310 Power Grid Corp Of India Ltd 181.80 0.00 5,173,777 Nintendo Co Ltd 29,905.00 0.78 1,280,893 Reliance Industries Ltd 1,246.90 1.02 10,580,178 Eisai Co Ltd 9,035.00 1.41 2,410,470 State Bank Of India 268.00 0.11 13,760,702 Isuzu Motors Ltd 1,597.50 -1.33 853,090 Sun Pharmaceutical Indus 429.70 1.74 4,736,317 Unicharm Corp 3,551.00 0.31 8,750,735 Tata Steel Ltd 498.85 1.57 11,782,714 Shin-Etsu Chemical Co Ltd 9,552.00 -0.46 33,401,683 Tata Consultancy Svcs Ltd 1,914.20 -0.03 4,683,919 Smc Corp 38,990.00 -1.07 1,414,847 Tech Mahindra Ltd 820.65 1.02 14,193,982 Mitsubishi Corp 3,248.00 -0.18 1,795,937 Titan Co Ltd 1,042.50 0.94 1,220,939 Asahi Group Holdings Ltd 4,823.00 -0.12 4,630,118 Tata Motors Ltd 169.70 2.97 14,811,723 Keyence Corp 63,210.00 1.02 103,283 Upl Ltd 826.25 0.43 1,044,953 Nidec Corp 13,480.00 0.60 1,088,239 Ultratech Cement Ltd 3,631.25 1.62 394,248 Nomura Holdings Inc 445.50 0.61 252,542 Vedanta Ltd 164.60 2.71 14,635,838 Daiichi Sankyo Co Ltd 3,909.00 0.13 12,244,482 Wipro Ltd 374.55 0.63 2,573,085 Subaru Corp 2,819.50 -0.12 453,017 Yes Bank Ltd 215.15 -1.24 27,975,632 Ntt Docomo Inc 2,604.00 -0.13 12,767,944 Zee Entertainment Enterprise 446.50 0.33 5,404,437

Gulf Times 10 Friday, February 22, 2019 BUSINESS Deutsche Bank weighed extending Trump loans on default risk

Bloomberg heightened concerns about the credit- and the very few that do have mortgages collect from a sitting president. Trump’s dealings with Deutsche Bank federal documents and property records London worthiness of Trump or his company, the are a small fraction relative to the value of The head of the retail bank at the time, are facing heightened scrutiny now that show. Jack Weisselberg, a top loan-origina- people said. the asset. These are traditional loans, no which includes the wealth management Democrats are in control of the House of tion executive at Ladder, is the son of Allen The bank ultimately decided against diff erent than any other real estate devel- unit, was Christian Sewing, who replaced Representatives and two party members Weisselberg, the Trump Organisation’s Top Deutsche Bank AG executives were restructuring the loans to the Trump oper would carry as part of a comparable Cryan as CEO in April. Sewing initially — Maxine Waters and Adam Schiff — are longtime chief financial off icer who previ- so concerned after the 2016 US election Organisation, which come due in 2023 and portfolio.” favoured approving the loan application, sitting at the top of powerful committees. ously worked for Donald Trump’s father, that the Trump Organisation might default 2024, and chose instead not to do any new Deutsche Bank had been Trump’s go-to but he submitted it to Deutsche Bank’s Democrats on the House Intelligence Fred. Ladder loaned Trump $282mn for on about $340mn of loans while Donald business with Trump while he is president, lender for decades, even as other commer- reputational risk committee, which recom- Committee have already described in detail four Manhattan properties, records show. Trump was in off ice that they discussed one of the people said. cial banks stopped doing business with mended turning it down, according to a what they want from Deutsche Bank. In a Jack Weisselberg declined to comment. extending repayment dates until after the A spokesman for Deutsche Bank declined him because of multiple bankruptcies. person familiar with the matter. Sewing March report, they said they would seek to The loans are split between variable-rate end of a potential second term in 2025, to comment, and the people with knowl- Although the German lender’s investment supported the decision, the person said. interview senior executives in the bank’s and fixed-rate mortgages. Some are according to people with knowledge of edge of the discussions said they didn’t bank had severed ties with Trump during The Trump Organisation said it never risk division who could tell them about due interest-only loans, with balloon payments the discussions. know why the bank ultimately decided the financial crisis, after he defaulted on sought such a loan. diligence conducted on Trump after the due at maturity, according to property Members of the bank’s management not to extend the loans. The White House a loan and then sued the bank, its wealth The outstanding Deutsche Bank debt 2016 election. They also want documents records and securities filings. board, including then chief executive of- didn’t respond to requests for comment. management unit continued to extend includes $125mn for the Trump National about the bank’s earlier transactions with The maturities on Trump’s Deutsche Bank ficer John Cryan, were leery of the public “This story is complete nonsense,” Eric him credit. Doral Miami resort, which matures in Trump and would like to interview his loans haven’t changed since his pre- relations disaster they would face if they Trump, a son of the president and an But, as the New York Times first reported, 2023, according to federal records and personal banker, Rosemary Vrablic. election financial disclosure, filings show. went after the assets of a sitting president, executive vice president of the Trump Deutsche Bank had already turned down a mortgage documents. The company also In the four years before his election, Trump Government-run databases containing said the people, who asked for anonym- Organization, said in an e-mail. “We are request for a loan from the Trump Organi- owes $170mn for the Trump International borrowed more than $620mn from Deut- local property filings for New York, Wash- ity because the discussions were private. one of the most under-leveraged real sation for work on a Scottish golf course Hotel in Washington and has another loan sche Bank and a separate lender, Ladder ington, Chicago and Miami-Dade County The discussions were about risks to the estate companies in the country. Virtually in early 2016, during the campaign, in part against a Chicago tower, both of which Capital, to finance projects in Manhattan, don’t show any changes in the terms of bank’s reputation and did not relate to any all of our assets are owned free and clear, because of concern that it might have to come due in 2024. Chicago, Washington and a Miami suburb, Trump’s mortgages.

ECB urged swift Swedbank money laundering analysis, no hasty decision report very serious, says FSA on new lending Financial watchdog voices concerns over Swedbank report; Estonia investigating Bloomberg interest-rate increase later this alleged link to Danske Bank Frankfurt year can’t be ruled out. Markets case; Hermitage Fund says had taken a diff erent view ahead intends to file criminal of the publication of the minutes complaint “shortly” European Central Bank off icials of the Fed’s January meeting on are setting up their meeting in Wednesday. Reuters two weeks as a key session to “No clear-cut conclusions could Stockholm decide if the euro-area slowdown be drawn regarding the implica- is bad enough to warrant action. tions of slower growth in the Policymakers have demanded short term for the outlook for weden’s fi nancial watch- that analysis on long-term loans activity in the medium term,” dog said allegations in for banks is done quickly, though according to the ECB account. Sa media report linking they haven’t fully committed to It will assess the situation “in Swedbank to a Baltic money implementing a new round of more depth” in March, when laundering scandal, involving funding. Given that more than it will also have new staff Danske Bank were “very seri- €700bn ($795bn) of existing forecasts. ous” as shares in the Swedish loans will mature next year, they More optimistic off icials put bank tumbled yesterday. said they’ll give “some considera- forward arguments that the Danske is being investigat- tion’’ to the issue. risks could still be described as ed in fi ve countries over some “While any decisions in this broadly balanced amid lower €200bn ($226bn) of suspicious respect should not be taken too oil prices and fiscal stimulus. payments from Russia, ex-Sovi- hastily, the technical analyses re- But the account also noted that et states and elsewhere that were quired to prepare policy options the slowdown “appeared to be found to have fl owed through its for future liquidity operations deeper and more broad-based Estonian branch. needed to proceed swiftly,” the than previously anticipated.” Swedish TV said on Wednes- ECB said in the account of its While external factors were day that documents showed January policy meeting. blamed, off icials are worried at least 40bn Swedish crowns The decision to look closer at this could eventually spread to ($4.30bn) had been transferred new loans came amid agreement investment. between accounts at Swedbank A logo hangs outside the headquarters of the Swedish Financial Supervisory Authority (FSA) in Stockholm (file). The FSA said information on the Governing Council that The document also noted weaker and Danske in the Baltics be- from TV news report had confirmed the risk that Swedish banks were being used for money laundering, even though the scope of the risks to the euro-area outlook inflation, partly related to oil tween 2007 and 2015, prompting suspected transactions in Swedbank’s case appeared to be much smaller than those at Danske. have increased. Some of the costs, could push down inflation Estonia to investigate the allega- ECB’s top off icials have in recent expectations. tions. delsbanken were down 2.9% and in the three Baltic countries in ters, declining to specify when comfortable with the safeguard- days laid the groundwork for The worsening growth outlook Swedbank shares, having re- 0.3%, while Nordea was down the near future.” he would fi le the complaint. ing systems that had been in adjusting policy, following the has already prompted investors corded their biggest intraday about 2.9%. On Wednesday, Swedish Fi- Analysts have said that one place throughout the years and footsteps of other central banks to push back expectations for a fall since the fi nancial crisis on The Swedish Financial Super- nancial Markets Minister Per of the biggest risks that Swed- Swedbank had reported any sus- like the Federal Reserve. rate increase to 2020. Policymak- Wednesday with an almost 14% visory Authority (FSA) said that Bolund had said that the allega- bank faces is a potential criminal picious transactions it caught, The ECB cited risks including glo- ers noted that this is consistent drop, were down a further 9.2% information from the television tions could damage the repu- complaint from Bill Browder, but could not off er assurances bal trade disputes and the threat with their commitment to keep at 165.2 Swedish crowns at 1055 news report had confi rmed the tation of the Swedish banking once one of the biggest foreign that it had not missed any. of a disorderly Brexit. Policy mak- interest rates unchanged at least GMT yesterday. risk that Swedish banks were sector. money managers in Russia who Alecta, the third biggest ers argued it’s diff icult to judge through the summer and in any The stock has now lost more being used for money launder- Bill Browder, founder and is now campaigning to expose Swedbank shareholder with the severity and persistence of case as long as warranted by the than a fi fth of its value in less ing, even though the scope of the CEO of investment fund Her- corruption. a stake of just under 5%, said the current soft patch, agreeing economic outlook. than two days. suspected transactions in Swed- mitage Capital Management told Browder has urged various yesterday it had been in contact that they need to see updated Chief economist Peter Praet said Swedbank is the largest bank bank’s case appeared to be much Reuters yesterday he intends to government authorities to bring with Swedbank and had received projections to better read the this week a change in the ECB’s in the Baltics with around 3.3mn smaller than those at Danske. fi le a criminal complaint against money laundering cases against assurances that Swedbank felt situation. plans to tighten borrowing costs private customers and around “The disclosures are very se- Swedbank with Swedish author- Danske. comfortable with how they have That partly explains why they’re could be the first safeguard 300,000 corporate customers rious and will be included in ities, contradicting Swedbank “We see the prospect of a acted. maintaining an element of against a deeper downturn. spread across the three coun- FSAs ongoing and future super- CEO Birgitte Bonnesen’s claim criminal lawsuit from Bill Brow- “We follow developments caution about the next step. A French central-bank Governor tries. vision activities,” FSA Director on Wednesday that he had no der and any potential US inves- carefully and are in constant similar situation is playing out Francois Villeroy de Galhau has The Baltics accounted for just Erik Thedeen said in a statement intention to do so. tigation as the price-sensitive contact with Swedbank,” Ram- at the Fed, which has paused also mentioned tweaks in lan- under a fi fth of Swedbank’s rev- yesterday. “It is my intention to fi le a issues,” Jeff eries analysts said in say Brufer, corporate governance tightening but signalled that guage as an option to respond to enue in 2018. “They will also be discussed criminal complaint against a client note. manager at Alecta, said in an e- if the economy improves, an a “significant” slowdown. Nordic peers SEB and Han- with the supervisory authorities Swedbank,” Browder told Reu- Bonnesen also said she was mailed statement.

Sberbank in talks to buy Air France-KLM CEO calms Dutch rift; clears way for deeper union media group Bloomberg Rambler Paris

Reuters Moscow ir France-KLM Group chief ex- ecutive offi cer Ben Smith struck Aa compromise aimed at easing a Russia’s biggest bank Sberbank growing rift within the airline, back- is in talks to buy Russian media ing Pieter Elbers to remain head of the company Rambler Group from Dutch arm and securing a vital seat for businessman Alexander Mamut, himself on the division’s board. several sources close to the Elbers’s mandate will be extended for matter said. four years and he’ll become deputy CEO Sberbank and Rambler said of the group alongside Anne Rigail, who they were not in talks on an heads the Air France unit. The two ex- acquisition when asked to com- ecutives and chief fi nancial offi cer Fre- ment by Reuters. deric Gagey will also form a new stra- They said they were in talks tegic committee to be presided over by about Rambler seeking to Smith. Ben Smith, CEO of Air France-KLM Group (second right), speaks during a full-year earnings news conference attended by Frederic Gagey, chief financial off icer of Air refinance with Sberbank debt At the same time, the Canadian will France-KLM Group (left), Pieter Elbers, CEO of the KLM division of Air France-KLM Group (second left), and Anne Rigail, CEO of the Air France division of Air France-KLM owed to Trust, another Russian get a seat on KLM’s supervisory board Group in Paris yesterday. Smith struck a compromise aimed at easing a growing rift within the airline, backing Elbers to remain head of the Dutch arm and securing a bank. and the decision-making process for vital seat for himself on the division’s board. Rambler Group is a smaller rival the Paris-based group will be stream- to Russia’s biggest search en- lined in areas such as fl eet planning and pilots backed a pay deal on Tuesday. lighted a profi tability gap between the 9.8% margin. The company said the fo- this week by a breakthrough with pi- gine Yandex, in which Sberbank alliances to help boost margins and cut Tensions between the carriers spilled larger French business and the smaller cus for 2019 will be on yield — or fare — lots that the airline says will be close holds a so-called golden share, costs. into the streets last week, when hun- but higher-margin Netherlands unit. improvements, cost cuts and continu- to cost-neutral thanks to productivity which gives Sberbank special The trade-off is aimed at quelling a dreds of Dutch workers demonstrated The diff erence has long been a source ing to lower debt. gains. He’s the fi rst non-French head of veto power. revolt among Dutch staff and letting at their headquarters outside Amster- of distrust between the carriers, with a “We have made signifi cant progress a group that was formed through a 2004 “Sberbank’s management is Smith, 47, exert greater control, sim- dam in support of Elbers, who they protracted series of strikes at Air France in reinforcing the trust and dialogue merger of former fl ag carriers. discussing a potential purchase plify governance and get the compa- feared would be ousted by Smith. over recent years serving to widen with our employees in both Air France The French government is the most of Rambler. ny’s diff erent businesses to work more In a show of force, top KLM manag- the rift. Performance GapAir France’s and KLM, allowing for a shared strate- powerful shareholder in Air France- The talks are about the entire closely in areas also including strategy, ers, staff ers and even Dutch offi cials operating profi t fell 69% to €266mn gic approach to accelerate the group’s KLM, while the Dutch state holds a holding,” a source close to Sber- digital, human resources and custom- attended the protest, while more than ($302mn) in 2018, with a margin of just profi table development,” its CEO said. stake in KLM. In spite of the merger, the bank said. Part of Sberbank’s er-data management. 25,000 employees signing a petition in 1.7%. That included a €62mn fourth- Smith, a former Air Canada execu- two arms have been operating semi-in- management team opposes the Mending the frayed relationship be- support of Elbers. quarter loss because of strikes. tive, took over in September and quick- dependently under a complex govern- acquisition, the source said. tween Air France and KLM has become Air France-KLM posted a 31% drop in KLM’s earnings were essentially fl at ly struck landmark deals with labor ance structure that maintains KLM’s Smith’s biggest challenge after French full-year earnings that once again high- at €1.07bn for the year, representing a representatives at Air France, capped fi nancial independence. Gulf Times Friday, February 22, 2019 11 BUSINESS

CORPORATE RESULTS Russia’s Gazprom Neft says 2018 net profit up 49%

sharp A$416mn jump in the airline’s fuel bill during Previously it said only in filings that it was “not prac- the period to a total AUS$2bn. ticable” to estimate the financial impact because Company revenue across all activities rose 6% over the range of potential outcomes was too broad. the same six-month period, boosted by a strong StanChart also included in the provision a £102.2mn performance on domestic routes by both Qantas ($133.3mn) fine from Britain’s Financial Conduct Au- and its low-budget counterpart Jetstar. thority related to historical financial crime controls. The profit outlook going forward looked good, It said it was considering its options in relation to Joyce said, with fuel prices expected to fall as the the penalty. company deploys more fuel-eff icient Boeing 787s The British regulator declined to comment when and retires its older 747s. contacted by Reuters. Albemarle Corp StanChart has been the subject of multiple investi- gations by US authorities into its dealings with Iran, Albemarle Corp, the world’s largest lithium produc- which is the subject of heavy US sanctions. er, posted a higher-than-expected quarterly profit In 2012, the bank agreed to pay $667mn to settle al- on Wednesday and gave a bullish 2019 outlook, say- leged sanctions breaches from 2001 through 2007. ing it sees nothing that could slow demand for the It also agreed deferred prosecution agreements white metal used to make electric car batteries. with the Department of Justice and New York The company reported fourth-quarter net income County District Attorney’s Off ice. of $129.6mn, or $1.21 per share, compared to a net The agreements were extended to March 31 this loss of $218.4mn, or $1.95 per share, in the year-ago year in December 2018. quarter. Excluding one-time items, Albemarle The current investigations are examining the extent earned $1.53 per share. to which the bank allowed clients with Iranian Analysts expected earnings of $1.47 per share, ac- interests to conduct transactions after 2007, as well cording to IBES data from Refinitiv. as the extent to which it shared such dealings with Lithium sales rose 18% to $341.6mn during the authorities at the time of the 2012 settlement. quarter on both higher volume and prices that were In October, Winters said US authorities were also up 4% from a year ago, the company said. investigating whether StanChart breached Iran- Serco related compliance rules as recently as 2013. Media reports last year said London-based Stan- Gazprom Neft, the oil arm of Russian gas producer He said Anglo American’s accident rate was at a debt it piled up through its network investment, Britain’s Serco raised its 2019 profit and revenue Chart faced a possible $1.5bn fine for Iran-related Gazprom, yesterday reported a 48.7% jump in 2018 record low as the rate of recordable incidents had leaving it with debt equivalent to less than three forecasts yesterday, buoyed by a run of recent sanctions violations. net profit to 376.7bn roubles ($5.8bn) buoyed by fallen to 2.66 injuries permn hours worked. The times its core earnings. contract wins that mark a bright spot in a troubled The 2018 provision will reduce profit at the bank, higher prices and output. goal, however, is zero harm. Barclays outsourcing sector beset by what CEO Rupert which analyst estimates had previously put at Russia’s fastest-growing oil producer by output, In 2018, five Anglo American workers died in safety Soames called “the fog of Brexit”. Under Soames, a $3.9bn, Refinitiv data showed. Gazprom Neft said it expects production to rise by incidents. Barclays hit back at its activist shareholder critic by grandson of British wartime prime minister Winston Bouygues 2% this year despite a global deal to curb produc- Centrica reporting rising annual income at its investment Churchill, Serco is at the tail end of restructuring tion. bank but sounded a note of caution with a £150mn and has focused on winning business abroad and French conglomerate Bouygues predicted an Output in 2018 rose 3.5% to 688.4mn barrels of oil Shares in British Gas parent Centrica slumped to provision against possible losses due to Brexit. cutting costs. increase in earnings for 2019 and growth at its equivalent, or 92.88mn tonnes. a 16-year low yesterday after the group warned a Barclays shares rose 3.5% yesterday as investors That has allowed the provider of public sector telecoms arm after posting higher 2018 profits that It reiterated a hydrocarbon production target national price cap on energy bills, a fall in nuclear looked past an annual profit of £3.5bn ($4.56bn) administration, training and custody services to lifted its shares. of 100mn tonnes of oil equivalent by 2020 and output and lower volumes at its oil and gas division that came in below expectations, focusing instead weather a slowdown in British decision-making The family-controlled group has recently had prob- expects oil prices of around $60 per barrel through would hit its 2019 results. on progress in its investment bank where profit caused in part by Brexit uncertainty and the col- lems at its construction division which have been to 2030 in its base scenario. Centrica said a regulator-imposed cap on standard increased 15%. Barclays chief executive Jes Staley lapse of contractor Carillion last year. off set by the strength of its telecoms unit. Gazprom Neft reported a 45.1% jump in 2018 energy prices would lead to a £300mn ($392mn) is locked in a high-profile tussle over the bank’s Shares in the company rose 4% after it said that However, Bouygues said all its main businesses, in- adjusted earnings before interest, tax, depreciation hit to profits in 2019, including a one-off impact of strategy with activist investor Edward Bramson, 2018 underlying trading profit rose 40% in constant cluding construction arms such as Colas, improved and amortisation (EBITDA) to 799.5bn roubles. about £70mn in the first quarter of 2019. who believes the lender should ditch a costly plan currency terms to £93.1mn ($121.7mn), meeting in the fourth quarter. Revenue rose by 28.7% to 2.49tn roubles on produc- Late last year Centrica, whose British Gas unit to grow its investment bank and focus on other less recently raised targets. Bouygues’ current operating profits rose 7.5% from tion, including shares in joint ventures. is Britain’s largest energy supplier, said it would risky parts of its business. New contracts that are starting to boost results a year earlier to €1.51bn, while sales rose 8% to TBC Bank seek a judicial review of the way regulator Ofgem Profits fell 3% in the Barclays UK division on the include three in Australia — running correctional €35.56bn. calculated part of the price cap, which was initially Brexit provision as well as flat interest margins from centre Grafton in New South Wales, the design and Core earnings at Bouygues Telecom, France’s third- Georgia’s biggest retail bank TBC Bank Group set around 6% lower than British Gas’s standard lending that Barclays said could fall yet further in construction of an icebreaker ship and provision of biggest mobile operator which Bouygues failed to Plc reported a 21.5% jump in full-year earnings variable tariff . 2019. health services in the defence sector — as well as merge with market leader Orange in 2016, rose by yesterday and took action to resolve a dispute with Ofgem this month said the cap will be raised by 10% The bank also saw a 20% decrease in corporate a mammoth UK asylum seekers’ accommodation 171mn euros from a year earlier to €1.27bn. the country’s central bank over its corporate bank from April 1 and British Gas has already said it will lending income, which it attributed to resources contract won this year. For 2019, Bouygues said it hoped to improve group subsidiary. increase its prices by the same amount. being deployed to higher-returning business That will eventually mean a return to dividends that profits and generate some 300mn euros of free TBC, which serves retail, corporate and small and “We believe (the cap) is the wrong intervention but elsewhere. were suspended in 2014, Soames told Reuters, with cash flow at Bouygues Telecom. medium-sized enterprise customers across the it is here and we will live with it,” chief executive Iain Barclays paid a dividend of 6.5 pence per share a pipeline of prospective work weighted towards AXA country, said profit rose to 437.4mn lari ($165.24mn) Conn told journalists. and signalled intentions to return more capital the second half of this year. in the 12 months ended December 31 from 359.9mn British Gas shed 742,000 customer accounts in via dividend increases and buybacks when it was Serco expects 2019 profit of about £105mn, above Exceptional charges along with natural disasters lari, a year earlier. 2018 as the company came under pressure from practical to do so. its previous guidance of £95mn to £100mn, on rev- hacked into net profits at AXA, one of the world’s TBC’s corporate division, TBC Bank JSC, said it smaller, nimbler rivals, often able to off er cheaper The bank however reported its core capital ratio fell enue of £2.9bn to £3bn, up from £2.8bn to £2.9bn. leading insurance firms, which nevertheless man- would pay about 1mn lari to the National Bank of deals. to 13.2% from 13.3% a year ago, a dip which is likely GAM Holding aged to boost its operating earnings to a record Georgia related to an investigation into certain Centrica posted a 12% rise in 2018 operating profit to renew a debate over its ability to return more level. transactions. to £1.39bn, bolstered by higher commodity prices, capital to shareholders at a time when rivals Lloyds Shares in GAM Holding AG extended their fall Net earnings plunged 66% to €2.1bn ($2.4bn) at the TBC Bank JSC also said it would end legal action and maintained its full-year dividend at 12 pence. Banking Group and RBS are ramping up payouts. yesterday as the Swiss asset manager said it faced French firm. against the central bank, restructure its supervisory In exploration and production, volumes at Cen- Staley’s total pay package for 2018 fell to £3.36mn , another challenging year after swinging to a giant The drop can be primarily attributed to a number board and that the founding shareholders would trica’s Spirit Energy are expected to remain in the down from £3.87mn pounds the previous year. 2018 loss. of exceptional items, such as a charges of €3.5bn it step down from that board. lower half of its 45 to 55mn barrels of oil equivalent He was the lowest paid among the four biggest GAM had a torrid year after being forced to write took to reduce the value of AXA Equitable Holdings Mamuka Khazaradze, who is chairman of TBC range for 2019. British bank bosses. down the value of its $217mn acquisition of British when it listed the US unit on the stock market and Bank Group’s board, said he had stepped down as AccorHotels Orange hedge fund Cantab and closing several funds after reorganise its Swiss group life business. chairman of the supervisory board of TBC Bank JSC suspending top money manager Tim Haywood for While the hit to net earnings was expected, the as he did not want to harm the bank’s reputation AccorHotels, Europe’s largest hotel company, Orange, France’s number one telecoms operator, alleged breaches of its rules. result was still less than the consensus of analyst further. posted record operating profits for 2018, helped struck a cautious tone for 2019 due to a protracted It said yesterday it had sacked Haywood for “gross forecasts compiled by Bloomberg at €2.3bn. Badri Japaridze also stepped down as vice-chair- by cost controls and robust demand in most key price war in its home country and few chances of misconduct. Two major natural catastrophes in the United States man of TBC Bank JSC’s supervisory, but remained in regions including France and Brazil. a merger between its rivals that could improve There was serious failure to achieve the standard of in the final quarter of last year — California wildfires TBC Bank Group. The French company said it would invest €225mn market conditions. skill and care which were to be expected of some- and Hurricane Michael — meant the integration TBC Bank Group, which listed in London in 2014, ($255mn) over coming years to support new The tough competitive landscape prompted chief one in his position.” of Bermuda-based property insurer XL into AXA said net interest margin — the main indicator of initiatives to boost its presence in hospitality and executive Stephane Richard to say he did not have Haywood has not responded to requests for com- Group translated into a €230mn loss. a bank’s financial strength — expanded to 6.9% entertainment services. enough visibility on operations to guarantee a divi- ment. But AXA was able to increase its measure of operat- for the year from 6.5%. The Tbilisi-based lender’s These investments will cost AccorHotels €55mn in dend above a floor price of 70 euro cents per share Assets under management (AuM) continued to fall, ing profit to €6.2bn. market share in total loans rose by 1.8 percentage 2019 and 45mn euros in 2020. in 2020, depressing shares in the company. hitting 132.2bn Swiss francs ($132.2bn) at the end of Gross revenues rose by 4% to €102.9bn. points to 38.8% as of December 31, while gross The programme is expected to reach breakeven in “We don’t say that we will not grow the dividend,” the year from 139.1bn at the end of November. Lenovo loans and advances to customers surged 19.7% to 2021 and the group expects it will help it exceed its Richard said on a call with analysts.”We say that The steep decline has made GAM a potential takeo- 10.37bn laris at the end of 2018. 2022 core earnings or EBITDA target of €1.2bn that today we want to have a better visibility on what we ver target, and chief executive David Jacob told a Lenovo Group, the world’s largest personal compu- The Georgian banking industry is dominated by was presented last November. can achieve on 2019... to make the final decision.” conference call that GAM’s board was examining all ter maker, posted better-than-expected quarterly TBC and its main competitor, Bank of Georgia, AccorHotels, which runs high-end chains such as Orange posted a higher-than-expected quarterly strategic options. results and shrugged off the impact of a bruising which last week warned that growth of unsecured Raff les and Sofitel as well as budget brands such as operating profit, mainly driven by increased rev- The company had said in December it would cut Sino-US trade war, sending its shares soaring 11% to consumer loans would moderate on the back of Ibis, said annual EBITDA reached a record 712mn enues in France and Spain and cost cuts. 10% of its staff and ditch its dividend as it warned it three-year highs. new regulations. euros, up 8% on a like-for-like basis and in line Adjusted core earnings (EBITDA) rose by 1.4% on a would slide to a 2018 net loss, which said yesterday The company, dual-headquartered in China and Deutsche Telekom with revised company guidance for core earnings comparable basis to 3.33bn euros ($3.8bn), above was 929mn francs. the United States, is optimistic of further growth in between 700mn and 720mn. market expectations for growth of 0.6%. Richard Standard Chartered China and will focus on the premium market, CEO Network operator Deutsche Telekom was unde- Revenue reached €3.61bn, up 16.9% on a reported said he would present a new strategic plan dubbed and chairman Yang Yuanqing told Reuters after terred yesterday from its optimism for 2019, even basis and driven by acquisitions. Vision 2025 later this year. Standard Chartered PLC (StanChart) has set aside December quarter revenue rose to the highest in as it reported falling profits last year and looked On a like-for-like basis revenue grew 8.8%. Revenue OTE $900mn to cover fines resulting from regulatory four years on a strong showing across its major ahead to massive investments in 5G networks and a per available room (RevPAR), a key gauge of activ- investigations in the United States and Britain, business groups. hoped-for merger with Sprint in the US. ity, grew 6.6% in France, with strong gains of 12.2% Greece’s biggest telecoms operator OTE expects a potentially drawing a line under probes which have Net profit for the quarter was $233mn, ahead of the Net profit at the Bonn-based giant fell 37.4% to in Paris. double-digit percentage rise in cash flows this year dogged the bank for years. $207mn average of 10 analyst estimates compiled €2.2bn ($2.4bn), a slump the group said was mainly Telefonica as recovery in Greece takes hold and its Romania News of the provision, made for the fourth quarter by Refinitiv and up from a loss of $289mn in the down to a fatter bottom line in 2017 thanks to tax business stabilises. of last year, comes ahead of a strategy update from same period a year earlier when Lenovo took a one- reforms in the US. Spanish telecoms group Telefonica expects 2% The former national monopoly, which is 45% owned the bank along with its 2018 earnings results on off hit due to US tax reforms. Operating, or underlying profit also dropped 8.9% organic growth in revenue and core profit and to and managed by Germany’s Deutsche Telekom, Tuesday, when chief executive Bill Winters is widely Lenovo said its share in the global PC market rose to €21.8bn, although revenues grew 0.9% to reach make savings this year after underlying revenue yesterday posted a 2.6% drop in fourth-quarter expected to outline an overhaul of operations. to 24.6% and that it expanded in premium markets 75.7bn — in line with forecasts from analysts sur- rose in 2018. core profit at €325.2mn ($369.30mn). Weakness in In a filing to the Hong Kong Stock Exchange such as workstations, thin and light PCs and gaming veyed by Factset. Chief executive Jose Maria Alvarez Pallete said Romania outweighed growth in its home market. yesterday, StanChart said the provision related to PCs. “We’re swimming against the trend across the 2018 results, along with “remarkable operating However, the group forecast free cash flow will the potential resolution of US investigations into Total revenue in the quarter rose 8.5% to $14.04bn, telecoms sector” with “excellent numbers,” chief momentum in the initial months of 2019, allow us reach about €350mn this year, up 31%. OTE said alleged violations of US sanctions, and for probes while that from its PC and smart devices group rose executive Tim Hoettges said at a press conference. to announce with confidence our 2019 targets”, as it will benefit from investments in advanced fixed relating to foreign exchange trading. 12% to a record $10.7bn. Looking to 2019, the group said it would stick to well as a €0.40 cash dividend. and mobile telephony networks and stabilising The filing is the first time the bank has quantified Revenue declined 20%, with Lenovo attributing the a forecast path set last year of average annual The targets imply revenue and core profit growth, revenue in Romania following one-off provisions the possible cost of the investigations. fall to a strategy of focusing on core markets. increases in revenue of between one and 2% until stripping out currency eff ects and other one-off s, and restructuring plans. 2021, with adjusted operating profit projected to will be close to or slightly lower than the 2.4% and Strong cash flow will raise payouts to shareholders, add between two and 4% each year. 3.5% registered in 2018. it said. Telekom highlighted strong performance at its However, the company raised its revenue target last OTE will pay a dividend of €0.46 per share on 2018 T-Mobile US division as a powerful growth motor for October. profit, up 31% rise compared to a year earlier. the firm, as revenue grew 6.8%, to $43.1bn (€38bn), Telefonica, which has invested billions of euros in Heavy spending on new high-speed VDSL broad- while operating profit increased almost twice as high-speed networks to carry bells-and-whistles band services and a fast growing pay-TV business fast, rising 13.6% to reach $11.9bn. packages including pay-TV, said it had boosted the in Greece, where it generates about 90% of its core Anglo American share of its revenue from services beyond tradi- profit, have helped the group win back fixed-line tional connectivity to 15%. It also pledged to make customers. Anglo American reported yesterday better than gross savings of over €340mn ($386mn) in the After implementing several voluntary redundancy expected core earnings, driven by higher copper course of the year, and spend around 15% of sales schemes in past years, OTE said it is “systemati- and coal prices, but said no financial performance on investments not including spectrum. cally” exploring cost-reduction initiatives to boost was “worth a life” and its biggest challenge was Plunging currencies in Brazil, where Telefonica profits across its businesses. eliminating danger at its mines. makes about a quarter of its core profit, and other Qantas Anglo American’s underlying 2018 EBITDA Latin American countries that account for a further (earnings before interest, tax, depreciation and 20%, have dragged on earnings in recent quarters. Australian carrier Qantas yesterday announced amortisation) of $9.16bn was up 4% from $8.82bn a Operating income before depreciation and amorti- a 16% drop in net profit for the last six months of year earlier and beat analysts’ average estimate of sation came in at €15.57bn ($17.7bn) in 2018, helped 2018, as rising fuel costs ended a record profit run $8.7bn, according to Refinitiv IBES data. by improving margins at its British and Brazilian for the company. As investors focus on sustainability, CEO Mark Cu- operations. Net profit for the period came in at A$498mn tifani said Anglo American was an industry leader The impact of currency eff ects, restructuring and (US$359mn), compared to the record A$595mn and backed calls from BHP earlier this week for an other one-off s meant this translated into a 3.8% earned for the same period in 2017. independent body to oversee the tailings dams that drop, on the back of €48.7bn in revenue, which in Underlying profit excluding one-off items fell 18.7% store increasingly high volumes of waste generated reported terms was a 6.4% fall. to A$780mn, the company reported. by mining. Telefonica shaved a further 5.5% in 2018 off the Qantas CEO Alan Joyce attributed the profit hit to a Friday, February 22, 2019 GULF TIMES BUSINESS Fed hints hiking bias endures as balance-sheet rolloff nears end

Bloomberg divided over what it would take for risks facing the US economy, ranging “Several” policy makers indicated “if move was just as likely to be a cut as a plan to stop reducing the Federal Washington them to raise rates again. There was no from slower growth in China and the economy evolved as they expected, a hike, chairman Jerome Powell told Reserve’s asset holdings later this year.” suggestion of a cut. Europe and waning fiscal stimulus, they would view it as appropriate to reporters after the meeting that policy Diane Swonk, chief economist at Grant “The debate is still focused on whether to ongoing trade disputes and the raise the target range for the federal makers weren’t leaning strongly in Thornton LLP, said she now expects Federal Reserve policymakers see to tighten or not, and not whether complications from the UK exit from funds rate later this year.” either direction. the Fed will make that announcement 2019 marking the end of their balance to cut,” said Wrightson ICAP LLC the European Union. Due to those That was balanced by another group of The “minutes suggest that the in March. sheet run-off , but not necessarily their chief economist Lou Crandall. “The worries, several off icials “nudged down “several” off icials who “argued that rate committee is probably still modestly Fed off icials expanded their balance interest-rate increases. risk is tilted in the direction of more their outlooks for output growth,” the increases might prove necessary only if biased toward the next move being sheet dramatically as an emergency Minutes of the central bank’s January tightening.” minutes showed. inflation outcomes were higher than in a tightening, whereas the statement measure to calm debt markets and 29-30 policy meeting released on US equity futures rose yesterday after The minutes also hammered home their baseline outlook.” conveyed more of a flat neutral bias,” stimulate the economy during the Wednesday showed “almost all stocks closed higher on Wednesday. In the point that off icials would proceed That left some economists convinced Michael Feroli, chief US economist at financial crisis. The portfolio has participants” agreeing it best to halt Europe, the Stoxx 600 Index slipped, cautiously. The record included a the minutes weren’t quite as dovish as JPMorgan Chase & Co, wrote in a note declined to about $4tn from a peak of roll-off s this year, a move that should though the euro gained after positive lengthy justification for being “patient” the message seemingly delivered on to clients. $4.5tn in 2015. be welcomed by investors worried the numbers from France. The European in deciding when and how next to January 30, when the Fed dropped a That was echoed by Michael Gapen, “They will have a permanently balance sheet draw-down is hurting the Central Bank will publish the account adjust policy. longstanding reference in its statement chief US economist at Barclays Plc: “The gigantic balance sheet,” said Ward economy. of its January meeting later, providing Still, all the discussion of downside risks to “further gradual increases” in rates, minutes, in our view, indicate that the McCarthy, chief financial economist The news on interest rates was less insight into policymakers’ thinking and patience didn’t shift the debate into and replaced it with a promise to be committee retains some upward bias in at Jefferies LLC. “They always said friendly to financial markets, where about the current slowdown in the euro the territory where cuts came into view. patient in deciding the “timing and size its policy rate path.” it would be larger than pre-crisis, some investors think the next move in area. Pricing in federal funds futures indicate of future adjustments.” On the balance sheet, the minutes said but earlier commentary suggested interest rates might be down. Minutes, Fed off icials dedicated a large portion a small chance that the Fed’s next move Asked whether the term almost all off icials agreed “it would be it would something significantly instead, showed Fed off icials were of their discussion to concerns over will be a rate cut. “adjustments” signalled the Fed’s next desirable to announce before too long smaller.”

Huawei says it’s key for UK 5G as UK watchdog fi nes asset officials mull restrictions

Bloomberg managers for breaking London Huawei Technologies Co equipment is critical for Britain’s 5G networks and off icials need to rely on facts to decide whether to allow the supplier, said a senior executive at the Chinese company. competition rules Britain is among European countries weighing restrictions on the Shenzhen-based tech giant Hargreave Hale says FCA has “isolated case which in no way rep- for its fifth-generation mobile rollouts, amid a made “factual” errors; Newton resents our business as a whole”. US-led campaign to block the company. Ryan says breach was isolated case; James Barham, chief executive Ding, the chief executive of Huawei’s division RAMAM says committed to of RAMAM, said he believed in that supplies phone carriers, said the debate highest standards maintaining the highest standards needs to centre on technology, not politics, in a and was confident the ongoing in- briefing with journalists in London. Reuters vestment made in procedures and “A 5G market without Huawei is like the Premier London processes clearly demonstrated the League without Manchester United,” Ding said, firm’s commitment to uphold these referring to Britain’s top-flight soccer league standards. and one of its highest-ranked teams. ritain’s markets watchdog Canaccord Genuity Wealth Man- The Trump administration has been trying to said three asset manage- agement said on behalf of its Har- persuade European allies not to allow Huawei Bment firms breached com- greave Hale affiliate that the FCA gear in 5G, arguing there are risks China will petition law by swapping informa- has made a number of legal and use its equipment for spying, a suggestion tion ahead of a share listing, with factual errors in concluding the the company has repeatedly denied. The UK two of them fined in the first such company breached competition has been considering what to do since raising use of the regulator’s competition rules and it was exploring its op- concerns with Huawei’s equipment last July. powers. tions with legal advisers. While no decision’s been taken, off icials have The Financial Conduct Authority “In particular, Hargreave Hale signalled an outright ban may be unlikely. said yesterday that Hargreave Hale was simply a recipient of infor- “As long as it is about technologies and not Ltd, Newton Investment Manage- mation that was provided on an about the politics, I am willing to accept the ment Limited and River and Mer- unsolicited basis by another fund decisions made by the government and the cantile Asset Management LLP manager and did not alter its own regulators,” Ding said. (RAMAM) breached competition bidding behaviour as a result,” Ca- Huawei has committed $2bn of research law. naccord said. and development spending on overhauling “The infringements consisted of The FCA said it ruled there were its systems to address any concerns, about the sharing of strategic informa- no grounds for action in respect of one-quarter of which Ding said would be spent tion, on a bilateral basis, between conduct between Artemis Invest- this year. The plan includes priorities such as competing asset management fi rms ment Management LLP and Newton enhancing the trustworthiness of its products during one initial public off ering and that took place between April and and hardware and most importantly, Ding said, one placing, shortly before the share May 2014 in relation to an IPO. the trustworthiness of the engineering culture. prices were set,” the FCA said in a Earlier this month, the FCA fi ned statement. A logo sits on display in the headquarters of the Financial Conduct Authority (FCA) in the Canary Wharf business Paul Stephany, a former fund man- “The fi rms disclosed and/or ac- district in London. The FCA said yesterday that Hargreave Hale Ltd, Newton Investment Management Limited and ager at Newton, 30,000 pounds for Huawei to open cepted otherwise confi dential bid- River and Mercantile Asset Management LLP (RAMAM) breached competition law. attempting to infl uence competitors ding intentions, in the form of the during share sales. store in Vienna price they were willing to pay and another’s plans during the IPO or It fi ned Hargreave Hale £306,300 tition leniency programme, the FCA The FCA said the conduct investi- sometimes the volume they wished placing process when they should ($400,180) and RAMAM £108,600. said. Newton said the investigation gated in that case related to “some of Reuters to acquire.” have been competing for shares, the Newton was not fi ned as it re- concerned the actions of a former the facts” investigated under com- Vienna This allowed one fi rm to know watchdog said. ceived immunity under the compe- employee who was dismissed in an petition rules.

Huawei is to open a smartphone flagship store in Vienna, its first such outlet outside China, as part of a charm off ensive in Europe where its UK report says Internet retailers should pay higher taxes future hangs in the balance. The world’s biggest producer of telecoms Bloomberg the Housing, Communities and Local Government “They are currently stacking the odds against busi- our profits have remained low given retail is a equipment is under scrutiny in the West over its London Committee. nesses with a high-street presence and this must highly competitive, low-margin business and our relationship with the Chinese government and Some 70,000 jobs were lost in the UK retail sector end.” continued heavy investment,” the retailer said in US-led allegations of enabling state espionage, in 2018 as chains like Marks & Spencer Group Plc Brick-and-mortar retailers pay more than their an e-mailed statement. with Washington asking allies not to use Hua- Internet retailers such as Amazon.com Inc, Asos and Debenhams Plc announced plans to close hun- fair share of tax, while online retailers are not The retail sector accounts for about 5% of the UK’s wei’s technology. Plc and Boohoo Group Plc should pay higher UK dreds of stores. Tesco Plc, the UK’s biggest retailer, contributing enough, the report said. Amazon’s gross domestic product and pays 25% of business Huawei has repeatedly denied the allegations taxes to help save ailing shopping districts that announced as many as 9,000 job cuts in January. rates amount to around 0.7% of its UK revenue, rates, according to the government report. and did again at a news conference in Vienna are losing revenue to e-commerce, according to a Internet sales are a major factor, with UK consum- while most street-based retailers pay double to Mike Ashley, the billionaire owner of Sports Direct In- yesterday. government report. ers spending more via the web than those in any eight times that. The tech giant already faces the ternational Plc, told the committee in December that Joe Kelly, vice-president of Corporate Com- An online sales tax, higher value-added tax and other European country, and one-fifth of December introduction of a UK digital tax from April 2020. e-commerce is the biggest threat to the UK’s shops. munications said at the news conference: “We “green taxes” on shipping and packaging should retail sales made online, according to the report. Amazon said it pays taxes in the UK and all coun- As a strategy to encourage retailers to keep have never been asked by any government or all be considered to help soften the blow to “Business rates must be made fair,” said Clive tries where it operates and has invested more than physical stores open, he proposed a 20% tax on any authority anywhere in the world... to do physical stores as consumers shift to internet Betts, a member of the House of Commons and £9.3bn ($12bn) in the UK since 2010. retailers that make more than a fifth of their sales anything that would compromise or jeopard- shopping, according to the report yesterday from chairman of the committee, in the report. “Corp tax is based on profits, not revenues, and online. ise... the security of customer networks.” US business spending on equipment is weakening Core capital goods orders fall 0.7% sales in December and manufactur- forecast core capital goods orders rising normal levels for this release.” In a Europe, fading fi scal stimulus, trade ment, appliances and components. in December; core capital goods ing output in January, strengthen the 0.2% in December. separate report yesterday, the Philadel- tensions as well as uncertainty regard- Orders for computers and electronic shipments increase 0.5%; weekly Federal Reserve’s “patient” stance to- Core capital goods orders increased phia Fed said its manufacturing activity ing Britain’s departure from the Euro- products were unchanged. jobless claims drop 23,000 to ward raising interest rates further this 6.1% on a year-on-year basis. index dropped to a reading of -4.1 this pean Union. Overall orders for durable goods, 216,000 year. Shipments of core capital goods rose month from 17.0 in January. The Fed has acknowledged the sof- items ranging from toasters to aircraft Minutes of the US central bank’s 0.5% in December after an unrevised That was the fi rst negative reading tening in business spending, noting in that are meant to last three years or Reuters January 29-30 policy meeting pub- 0.2% drop in the prior month. since May 2016. Wednesday’s minutes that “manufac- more, increased 1.2% in December. Washington lished on Wednesday noted that Core capital goods shipments are There were negative readings for new turing contacts in a number of Districts That refl ected a 3.3% rise in demand “some risks to the downside had in- used to calculate equipment spending orders and shipments at factories in the indicated that such factors were caus- for transportation equipment. creased” with regard to the outlook for in the government’s gross domestic region that covers eastern Pennsylva- ing them to delay or defer capital ex- Durable goods orders gained 1.0% in ew orders for key US-made the economy. product measurement. nia, southern New Jersey, and Dela- penditures.” November. capital goods unexpectedly fell The Fed left interest rates unchanged While the rebound in core capital ware. Business spending on equipment has A third report yesterday from the Nin December amid declining at that meeting and discarded promises goods shipments suggests continued US fi nancial markets were little been slowing since the second quar- Labour Department showed initial demand for machinery and primary of “further gradual increases” in bor- moderate growth in business spending moved by the data. ter of 2018, despite the White House’s claims for state unemployment ben- metals, pointing to a further slowdown rowing costs. on equipment in the fourth quarter, the In the wake of last week’s downbeat $1.5tn tax cut. efi ts dropped 23,000 to a seasonally in business spending on equipment The Commerce Department said surprise drop in orders points to weak- December retail sales report, econo- Some companies including Ap- adjusted 216,000 for the week ended that could crimp economic growth. orders for non-defense capital goods ness in the months ahead. mists slashed their GDP growth esti- ple used their tax windfall to buy back February 16. The moderation in business invest- excluding aircraft, a closely watched The December report was delayed mates for the fourth quarter by as much shares on a massive scale. The four-week moving average ment was also underscored by another proxy for business spending plans, by a 35-day partial shutdown of the as 1.2 percentage points to as low as a A survey last month showed lower of initial claims, considered a better report yesterday showing a measure of dropped 0.7%. Data for November was federal government that ended on 1.5% annualised rate. taxes had not caused companies to measure of labour market trends as it factory activity in the mid-Atlantic re- revised down to show these so-called January 25. The economy grew at a 3.4% pace in change hiring or investment plans. irons out week-to-week volatility, rose gion contracted in February for the fi rst core capital goods orders falling 1.0% The Commerce Department said the third quarter. In December, orders for machin- 4,000 to 235,750 last week, the highest time since May 2016. instead of declining 0.6% as previously the “processing and data quality were The economy’s outlook has been ery fell 0.4%. Primary metals orders level since January 2018. The reports, together with data last reported. monitored throughout, and response clouded by fears of a sharp slowdown in dropped 0.9%. There were also de- That suggested some weakening in week showing steep declines in retail Economists polled by Reuters had and coverage rates were at or above global growth, especially in China and creases in orders for electrical equip- labour market conditions.