‘DIESELGATE’ SAGA: Page 11 VW strikes deal with German consumers

Saturday, February 29, 2020 Rajab 5, 1441 AH LOSS OF MOMENTUM: Page 12 US consumer GULF TIMES spending slows in January; BUSINESS income surges

DIFC calls for enhanced co-ordination to make further investments in AI, sports

The recently concluded sixth Doha suggestions were made in the form of which was organised by Bait Al improvements such as earnest money finance institutions shall be prepared conference, four central themes were Islamic Finance Conference took a 11-point agenda, which also included Mashura Financial Consultants. and the promises within their Shariah to face the upcoming and renewing discussed covering the topics: Predict special note of Qatar’s “outstanding” adoption of blockchain technologies The Islamic countries are encouraged confinements. challenges of technology, such the financial and economic crises experience in the Shariah finance and tapping of new sectors, as part of to establish Islamic capital markets, They should also undertake the study as artificial intelligence,” Bait Al and their impact on Islamic finance; and suggested enhanced co- a strategy to enhance Islamic finance’s common for metals, commodities to formulate new contracts, and to Mashura said, adding the Islamic Islamic Finance and Recent Trends ordination among Islamic finance contribution to the global gross and financial papers, in compliance transform from the alternatives to countries are encouraged to towards Sports Sector; Islamic Trading institutions to make further domestic product (GDP). with Shariah maxims and objectives Islamic products in line with Islamic enhance the regulatory ambiance Platforms, as well as Innovation; investments in artificial intelligence It is recommended to co-ordinate as they are encouraged to formulate economics its objectives. They shall for encompassing technological and Artificial Intelligence in Islamic (AI) and sport sectors. between Islamic finance entities, a global index for profit rate as well also benefit from electronic and improvement requirements and AI as Finance. The need for further strengthening universities and scientific research as to benefit from Shariah compliant digital technologies for establishing well as the forthcoming challenges The working papers were presented Shariah finance in Qatar, where assets centres to establish scientific centres contracts and all the permissible well developed Islamic market, it was which may reshape the future of by scholars, academicians, experts within Islamic finance market stands dedicated to foreseeing the future of forms of sales of debts and arbitration observed. Islamic finance. and the participants to comprise 15 at $129bn, was stressed and other Islamic finance, said the conference, vis-à-vis ‘fiqhi’ options and their “The Islamic banks and Islamic During the scientific sessions of the researches, apart from discussions.

Turkish economy Qatar-Philippines merchandise registers strong trade reaches over $203mn in ’19 rebound

By Peter Alagos tries abroad as part of the country’s Yalong was recently in Qatar for the local understanding of the current Business Reporter Philippine Export Development Plan Doha leg of the Department of Trade economic conditions and business Reuters (PEDP) 2018-2022 that focuses on key and Industry’s (DTI) ‘Outbound Busi- opportunities. Ankara export sectors: electronics, such as ness Matching Mission (OBMM) to Moreover, the project supports the erchandise trade between offi ce equipment and consumer elec- GCC 2020’, led by DTI-Trade Promo- ‘Export Promotion for Philippine Food Qatar and the Philippines tronics; processed food and bever- tions Group (TPG) Undersecretary Ab- Sector’, which endeavours to bring The Turkish economy grew Mreached $203.18mn in 2019, ages like coconut products, processed dulgani M Macatoman. Philippine cuisine, ingredients, and 6% year on year in the fourth according to Philippine Commercial fruits, baked goods and confection- The Philippine delegation also in- beverages overseas. The programme’s quarter and nearly 1% in 2019 as Attaché for the Middle East and Africa ery, and beverages; IT-BPM (business cluded DTI-EMB Senior Trade and In- strategy will build on Strategy No 3 of a whole, data showed yesterday, Charmaine Mignon S Yalong. services), such as creative industries, dustry Development Specialist Myrtle the PEDP 2018-2022, which is to de- beating expectations with a Of the total amount, Yalong said healthcare information, startup, lo- Faye L Solina, and Trade and Industry sign comprehensive packages of sup- strong rebound from recession the Philippines exported $55.19mn gistics/transport, and franchising, Development Specialist Al-Mahdi I port that will be able to mainstream the as it shakes off the eff ects of the worth of goods (excluding services), among others; and tourism and trav- Jul-Ahmad. Philippine food, food ingredients, and 2018 currency crisis. and imported mostly gas from Qatar el-related goods, which include tour- Aside from government repre- beverages sectors, and encourage inno- The data marked a sharp turna- amounting to $147.99mn, making the ism services like accommodation sentatives, the delegation was also vations on major Philippine commodi- round for the emerging market Southeast Asian nation a net importer Yalong: Expansion plans. services, travel agencies, and souvenir composed of representatives from 11 ties and niche products. economy, which has a track of Qatari gas. items, among others. Philippine business companies partici- Joseph Timothy Rivera, Investment record in the past two decades Yalong said of the $55.19mn worth ($3.7mn), transport ($1.63mn), ma- She noted that the PEDP 2018-2022 pating in the DTI’s OBMM initiative, Promotions Partner for the Middle of about 5% growth but has been of Philippine exports, processed food rine/aquaculture ($1.36mn), personal has three key strategies, which is to which was organised in collaboration East of the Philippine Economic Zone hit by a nearly 40% slide in the topped the list of goods at $17.57mn, care ($1.19mn), chemicals ($98mn), improve the overall climate for export with the Philippine Embassy in Qatar. Authority (Peza), said Peza’s repre- lira’s value since the beginning followed by fresh food worth $12.13mn, pharmaceuticals ($65mn), and others development, to exploit existing pro- By staging the OBMM in Qatar, sentatives in Qatar “are aggressively of 2018. Compared with the third and machinery amounting to $9.19mn. ($2.77mn). spective opportunities from trading Macatoman said event would help de- working hand in hand” with Yalong quarter, Turkey’s gross domestic Other leading export products from Yalong said the Philippine govern- arrangements, and to design compre- velop and expand relationships with and the Philippine Embassy in Doha to product (GDP) expanded at a the Philippines include construc- ment is working to increase its exports hensive packages of support for select- business, government, and multiplier ensure the eff ective promotion of busi- seasonally and calendar-adjusted tion materials ($4.02mn), electronics to the Middle East and other coun- ed products and services sectors. organisations in Qatar, and enhance ness opportunities to Arab markets. rate of 1.9%, Turkish Statistical Institute data showed. A Reuters poll had forecast the economy would expand 5% year on year in the fourth quarter. Dampened global sentiments due to virus reflect on QSE In 2019 as a whole, the economy grew 0.9%, against a poll forecast of 0.6%. The By Santhosh V Perumal QR213.12mn compared with net buyers of QR27.62mn government is forecasting 5% Business Reporter a week ago. Non-Qatari individuals were also net sell- economic growth this year ers to the extent of QR3.14mn against net buyers of and next. Consumer spend- QR0.87mn the previous week. ing helped to boost economic Dividend worries and apprehensions over coronavi- However, domestic funds’ net buying grew signifi- activity in the final quarter of rus dampened sentiments on bourses globally, which cantly to QR179.61mn compared to QR110.85mn a 2019, said Haluk Burumcekci, an had its reflection on the Qatar Stock Exchange as well week ago. economist who runs Burum- this week. Local retail investors were net buyers to the tune of cekci Consulting in Istanbul. Foreign institutions were seen hurriedly squaring QR36.65mn against net profit takers of QR139.34mn The lira stood at 6.2540 against off their position this week which saw total assets of the previous week. the dollar yesterday, weaken- commercial banks in Qatar witness a robust more Total trading volume fell 19% to 389.11mn, while value ing from Thursday’s close of than 12% year-on-year expansion to QR1.56tn in Janu- was up less than 1% to QR1.26bn and transactions by 6.2080. It slipped on concern ary 2020. 15% to 36,799. over the impact of a Syrian An across the board selling – particularly within The transport sector’s trade volume plummeted 39% government attack that killed insurance, real estate and telecom – drove the to 11.19mn equities, value by 41% to QR30.58mn and 33 Turkish soldiers in northwest bourse down this week which saw Qatar National deals by 35% to 1,198. Syria on Thursday. Cement Company (QNCC) reiterate its continued There was 35% plunge in the consumer good’s trade The central bank responded to support to the country’s infrastructure develop- Domestic institutions were increasingly net buyers on the Qatar Stock Exchange this volume to 35.95mn stocks but on 20% increase in the 2018 currency crisis by rais- ment by diversifying the product portfolio by week, even as foreign institutions were seen hurriedly squaring off their position value to QR122.21mn and less than 1% in transactions ing its benchmark interest rate adding new products to meet the growing local to 2,916. to 24%, where it stayed until last demand. QATR valued at QR471,156 change hands across 29 estate and banking sectors together constitute more The real estate sector’s trade volume tanked 31% to July. It has since cut rates ag- Non-Qatari individuals were seen bearish as the transactions. than 54% of total trading volume. 107.53mn shares, value by 38% to QR108.96mn and gressively, by 1,325 basis points, 20-stock Qatar Index plunged 4.47% this week which Local retail investors were seen bullish this week The Total Return Index tanked 3.8%; Al Rayyan Islam- deals by 26% to 4,713. to boost growth. saw Qatari Investors Group (QIG) reveal that it has which saw 5,954 Doha Bank sponsored QETF worth ic Index 5.25% and All Share Index 3.82% this week. The banks and financial services saw 21% shrinkage Separately Turkish industrial entered into agreement with Mediterranean Shipping QR57,936 trade across six deals. The insurance index plummeted 6.53%, realty in trade volume to 102.98mn equities but on 2% jump production climbed 8.6% year Company or MSC, a global giant, relating to cruises Trade turnover grew marginally amidst lower vol- (6.42%), telecom (6.2%), transport (4.03%), industri- in value to QR621.83mn and 27% in transactions to on year in December, rising for and logistical services. als (3.77%), consumer goods (3.65%) and banks and 13,580. a fourth straight month and The market had seen corrections throughout this financial services (3.32%) this week. The industrials sector’s trade volume was down underlining economic strength week which saw Qatar’s cost of living, based on WEEKLY REVIEW Major losers included Qatar Insurance, Qatar 7% to 87.74mn stocks, whereas value rose 8% to in the last quarter of 2019. consumer price index inflation decline 0.41% year-on- General Insurance and Reinsurance, QNCC, QIG, QR225.09mn and deals by 21% to 7,377. Economists’ median estimate in year in January 2020. umes this week which saw Milaha report net profit of Qatar Electricity and Water, Aamal Company, Gulf However, the insurance sector’s trade volume almost the Reuters poll was for annual More than 93% of the traded constituents were in QR547mn in the year ended 2019. International Services, Barwa, Ezdan, Mesaieed doubled to 16.87mn shares and value more than growth of 4% this year, below the red this week which saw no trading of sovereign Market capitalisation eroded 4.28% or about QR24bn Petrochemical Holding, Ooredoo, Vodafone Qatar, doubled to QR42.2mn on more than doubled transac- the government’s 5% forecast. bonds and treasury bills. to QR525.97bn mainly dragged by large and small Milaha, Nakilat, QNB, Qatar Islamic Bank, Commer- tions to 1,237. The statistics institute also an- However, domestic institutions were increasingly cap segments this week. cial Bank, QIIB and Salam International Investment The telecom sector reported 67% surge in trade nounced that the foreign trade net buyers this week which saw as many as 221,415 Islamic stocks were seen declining faster than the this week. volume to 26.85mn equities, 31% in value to deficit rose 94.3% year on year Masraf Al Rayan sponsored exchange traded funds other conventional entities this week which saw real Foreign institutions turned net sellers to the tune of QR104.29mn and 64% in deals to 5,778. in January to $4.45bn. Gulf Times 2 Saturday, February 29, 2020 BUSINESS

‘Virus-hit Japan needs Japan PM vows to protect $45bn of extra economy as virus spreads spending’ Bloomberg Reuters Tokyo Tokyo n adviser to Prime Minis- apanese Prime Minister Shinzo Abe ter Shinzo Abe said Japan vowed to take whatever policy steps Ashould compile another Jare needed to prevent the new coro- economic package with fresh navirus from dealing a severe blow to an spending of at least ¥5tn ($45bn) economy already teetering on the brink to respond to a severe hit from the of recession. coronavirus outbreak. With investors fearful of a worldwide “We should take it very seri- downturn, global shares yesterday were ously that this is terrible timing, heading for their biggest weekly fall coming right after the sales tax since the depths of the fi nancial crisis hike,” Etsuro Honda, one of the in 2008, putting policymakers under key architects of Abenomics, said pressure to take bolder action. in an interview Thursday. “The Abe said the government had suf- impact could be devastating in the fi cient reserves to tap for emergency short term.” spending related to the epidemic, sig- With the likelihood growing nalling he saw no immediate need to that the virus is pushing a fragile compile a fresh spending package. economy into recession, Honda’s “But I’m aware of views that if the vi- remarks will likely add to specula- rus spreads, it could have a huge impact tion that Abe could draw up more on the economy,” Abe told parliament spending plans a matter of weeks yesterday. “We’re therefore watching after his most recent stimulus developments carefully.” package was approved. “If developments change, we’ll en- Abe said yesterday that he sure to take steps as needed to prevent would take bold economic meas- the virus from becoming a huge down- ures if needed. Already-budgeted side risk to Japan’s economy,” he said. spending could be brought for- Tokyo’s benchmark Nikkei average, ward to off er quicker support seen by Abe’s administration as a ba- for growth, but the new package rometer of success of its “Abenomics” proposed by Honda may still be stimulus policies, closed down 3.67% needed before the Olympic Games yesterday. in the worst case scenario, he said. The yen hit a one-month high against Honda’s enduring signifi cance the dollar as investors fl ocked to the among Abe’s advisers was shown Japanese currency as a beacon of safety. by the recent appointment of Seiji A rising yen is an unwelcome move Adachi, a close refl ationary friend for the Bank of Japan worried it could of Honda, to join the Bank of Ja- undermine the export-reliant econo- Shinzo Abe, Japan’s prime minister speaks during a budget committee session at the lower house of parliament in Tokyo. Abe said the government had sufficient pan’s policy board in March. Hon- my. A senior Japanese fi nance minis- reserves to tap for emergency spending related to the epidemic, signalling he saw no immediate need to compile a fresh spending package. da’s formal title as special adviser try offi cial said on Friday that market to Abe was dropped before a stint movements were refl ecting the “shock” to shrink again in the current quarter more than 2% if economic conditions week – the fi rst time the central bank tion, the BoJ appears reluctant to deploy as ambassador to Switzerland. from the spreading of the virus, but re- and slip into recession – defi ned as two do not normalise by the end of March. has put off a public appearance by a additional stimulus – at least for now. The weakened state of Japan’s frained from commenting on specifi c straight quarters of contraction. “We could see a huge slump in serv- policymaker since the virus hit Japan. “I don’t think the BoJ needs to take economy ahead of the virus out- market moves. “It’s true Japan’s economy is in a ice-related consumption that we’ve Japan’s government compiled a fi scal additional monetary easing steps now break largely stems from the Oc- Japan’s economy shrank at its fastest pretty tough condition,” Economy never experienced before” after Abe spending package late last year to coun- in response to the coronavirus out- tober tax hike, Honda said. Rais- pace in nearly six years in the Decem- Minister Yasutoshi Nishimura told par- asked companies to cancel events and ter the impact of soft global demand. break,” said Goushi Kataoka, one of the ing taxes was never a part of the ber quarter, as weak global demand and liament yesterday. shut down schools, Kono said. But some ruling party lawmakers most dovish members of the BoJ board. Abenomics plan to generate stable a domestic increase in a sales tax hurt Ryutaro Kono, chief Japan economist The BoJ said yesterday a board mem- are calling for fresh spending given the “We need to fi rst look at how serious growth in Japan, but was some- consumption and business spending. at BNP Paribas, said GDP may fall in the ber would postpone a scheduled visit to damage from the epidemic. the impact from the outbreak would thing Abe inherited from a previ- Some analysts expect the economy current quarter at an annualised rate of Fukushima in northeastern Japan next Having used up most of its ammuni- be,” he told reporters on Thursday. ous administration, he added. India registers Asia’s garment industry sees lay-offs, 4.7% economic factories closing due to coronavirus

Reuters production outside China to fill the potential gap in more dependent on China, with the Myanmar Garment growth in Dhaka production from that country – the world’s largest Manufacturers Association warning that half of the apparel and textile manufacturer. nation’s 500 factories could shut down by March if the Still, sourcing lines in the clothing industry are deeply crisis persists. Temporary factory closures and layoff s have already intertwined and factories in southeast Asia are China supplies about 90% of fabrics sent to Myanmar, third quarter begun to hit low wage workers across Asia as dependent in turn on China for supplies like cloth, which so far has not reported any cases of the virus, but quarantines and travel restrictions from the new buttons and zippers. the closure of the land border to try to keep infections coronavirus disrupt supply chains linked to China. Cambodia said this week that 10 factories had already out has disrupted the supply chain. IANS 3.9% during 2019-20, as against For 31-year-old Myanmar worker Aye Su Than, the applied to suspend operations and would pay partial “We can still export, but we cannot say what is going New Delhi 4.8% in the previous year. suspension of production at Hunter Myanmar, which wages to about 3,000 workers. to happen in the next one or two months,” Aung Min, “The ‘Per Capita Income at produces clothes for an Italian fashion brand, came The government in Phnom Penh expects a total of vice-chairman of the manufacturers’ association, current prices during 2019-20’ out of the blue when managers informed its 900 200 to slow or stop production in March because of told Reuters. “This is kind of scary – the situation is lowdown continued to is estimated to be Rs134,432, employees almost two weeks ago. coronavirus, aff ecting 100,000 of more than 850,000 uncertain.” hamper India’s economic showing a rise of 6.3% as com- “They said, ‘There are no orders, no buyers, because of employed in the $7bn sector, which is Cambodia’s A prolonged crisis could eventually see retailers face Sactivity as 2019-20 third pared to Rs1,26,521 during 2018- the virus we are going to shut down,’” said Aye Su Than, largest employer. a shortage of clothing, although fashion giant H&M quarter GDP growth rate was re- 19,” the NSO said. who is five months pregnant and makes about $130 per In Bangladesh, the world’s second-largest garment Group said it currently doesn’t see the virus causing corded at 4.7% from the revised Moreover, the data showed month. manufacturing industry after China, factories are still any larger delays in deliveries. estimate of 5.1% reported for the a sharp contraction of 5.2% in She said she got $320 in compensation from the running but anxiety is growing. “We are in close contact with our suppliers in China and previous quarter. the gross fi xed capital formation factory, which declined to comment when contacted. “Nobody knows what will happen ahead but the factory evaluating the situation together with them on a daily India’s GDP growth during in Q3 FY20. On sector-specifi c “We don’t know what to do now… It is not easy to apply owners are really worried,” said Mohammed Nasir, a basis,” H&M spokeswoman Ulrika Isaksson said, adding 2019-20 has been estimated at basis, agro and allied, public ad- for a job elsewhere during my pregnancy,” Aye Su Than director of the Bangladesh Garment Manufacturers and that the company was also exploring other options for 5% as against 6.1% in 2018-19. ministration and mining indus- said, sitting in a tea shop in Hlaing Tharyar, an industrial Exporters Association. production. Yesterday, the data furnished tries showed healthy perform- district on the outskirts of Yangon. Dependence on China Manufacturers, too, are scrambling to find alternative by the National Statistical Offi ce ance, whereas manufacturing, Such bad news is being repeated in many parts of Asia’s suppliers of everything from fabric to buttons and (NSO) in the ‘Second Advance electricity and construction more than $290bn textile industry, which accounted Readymade garments are a mainstay of Bangladesh’s zippers. Estimates of National Income, related sectors continued to ex- for 60% of the world’s readymade garments, textiles economy, contributing almost 16% of national output “It is not easy to shift the sourcing destination 2019-20’ as well as ‘Quarterly hibit contraction. and footwear in 2015, according to World Trade and about $34bn worth of exports in the last fiscal year overnight. But buyers are currently looking for Estimates of GDP for Q3, 2019- “Contrary to our expecta- Organisation statistics. ending in June 2019. alternative sources,” said Siddiqur Rahman, a leading 20’ showed revised growth fi g- tions that the GDP growth had Low-wage workers are particularly vulnerable to “Almost 70% of our woven fabrics come from China and garment exporter. ures for earlier periods. bottomed out in Q2 FY2020, any global economic downturn triggered by travel naturally if goods do not arrive on time, the readymade Alternative raw material suppliers are being explored in As per the data, the revised the initial growth print of 4.7% restrictions and quarantines as the coronavirus garments industry will be aff ected. Thailand, Indonesia, Pakistan and India but then costs second quarter GDP growth rate for Q3 FY2020 reveals that the outbreak spreads from China around the world, roiling If the crisis in China is prolonged, the impact would will go up, he said. stood at 5.1% from the earlier slowdown continued in the just- supply chains. be severe,” Nasir said. Bangladesh has about 4,000 “Are the buyers ready to pay more? I don’t think so. So, 4.5%. Other revisions include concluded quarter, relative to International brands from Uniqlo to Adidas have garment factories employing some 4mn workers. it is not that easy. But we’ll have to look beyond China the year-on-year growth rate of the upwardly revised growth for wide networks of suppliers and can potentially shift Neighbouring Myanmar has a smaller industry but is to survive in the long run,” said Rahman. 5.6% in Q3 2018-19 from an ear- Q1 FY20 and Q2 FY20,” said Adi- lier estimate of 6.6%. ti Nayar, Principal Economist at The 4.7% growth would be ICRA. the slowest rate of expansion in According to M Govinda Rao, around last six years. Chief Economic Adviser, Brick- On a sequential basis, the work Ratings: “With the gov- growth rate came at 7.1% in Q1 ernment spending likely to be of 2018-19, followed by 6.2% in constrained in the fourth quarter Q2 in the same fi scal and 5.6% in due to constraints on fi scal space Q3 FY19. In 2019-20, the revised and in the absence of strong fi gures showed that growth green shoots, we don’t expect stood at 5.6% in Q1, 5.1% in Q2, much improvement in the fourth and 4.7% in Q3. quarter of 2019-20.” Furthermore, the NSO data Karan Mehrishi, Lead Econo- showed that Gross Value Added mist at Acuite Ratings & Re- (GVA) growth rate during the search, said: “Q3 print is in line third quarter of 2019-20 on a with our expectations. YoY basis fell to 4.5% from 4.8% Even though a favourable base in Q2 and 5.6% during the like did play a role in the slight im- period of the previous fi scal. provement in quarterly value The GVA includes taxes, but added, it is heartening to see excludes subsidies. green shoots in household con- “The ‘Per Capita Income’ in sumption and capital formation. real terms (at 2011-12 prices) “Nevertheless, a tight fi scal during 2019-20 is estimated space is constricting public ex- A garment factory in Dhaka. In Bangladesh, the world’s second-largest garment manufacturing industry after China, factories are still running but anxiety is growing. to attain a level of Rs 95,706 as penditure, which has reported a “Nobody knows what will happen ahead but the factory owners are really worried,” said Mohammed Nasir, a director of the Bangladesh Garment Manufacturers and compared to Rs 92,085 in the lower contribution of GDP this Exporters Association. year 2018-19, giving a growth of quarter.” Gulf Times Saturday, February 29, 2020 3 BUSINESS

Powered by hydrogen, Hyundai’s trucks aim to conquer the Swiss Alps

Reuters European countries this year, out of “We are not fooling ourselves, it is Frankfurt/Zurich Austria, Germany, the Netherlands or initially a subsidised business model,” Norway. said HHM’s Freymueller, adding that this In Switzerland, HHM, the leasing unit would be the case for the introduction Hyundai’s hydrogen-powered 18-tonne set up by Hyundai and Swiss startup H2 of any new technology. trucks are set to hit the roads in Switzer- energy, has partnered with Hydrospider, Over 10 years, an assumed invest- land next month as the South Korean a joint venture of H2 Energy with indus- ment of 1.3mn Swiss francs ($1.3mn) in automaker looks to establish a case for trial gas maker Linde and Swiss power a pump could be recovered if 15 trucks its zero-emissions technology in a low utility Alpiq. visited it exclusively for their annual carbon world. Hydrospider is about to start produc- fuelling needs, HHM estimates. Invented nearly two centuries ago, ing hydrogen for 40-50 Hyundai trucks Supermarket chain Migros is taking hydrogen fuel cells first lost out to at a 2 megawatt (MW) electrolysis plant three Xcients and plans to measure their combustion engines and now trail electric at Goesgen. performance against a Mercedes-Benz batteries in the push for greener transport Stefan Linder, a member of Hydrospi- truck powered by an electric battery, because they are expensive, hydrogen is der’s board of directors, said as more H2 three biogas-fuelled trucks from Italy’s hard to store, and most of it is extracted trucks go into service it would have to Iveco – and diesel. from natural gas in a process that pro- boost capacity to 70 MW to 100 MW by At the moment, Migros says it pays duces carbon emissions. 2023-2025. 50mn Swiss francs a year in heavy vehi- But when it comes to trucks, Hyundai In preparation for launching hy- cle environmental duties (LSVA) levied and its partners argue that electric bat- drogen trucks in Norway this year, H2 on all vehicles over 3.5 tonnes using any teries won’t always do the job because Energy has formed a partnership with roads in Switzerland. the bigger the payload, the bigger – and Nel ASA, Greenstat and Akershus Energi The Hyundai trucks will initially be heavier – the battery, and that’s a problem Hyundai’s H2 Xcient Fuel-Cell truck is pictured in this undated handout image. The trucks are set to hit the roads in to supply green hydrogen. exempt from LSVA. for crawling up Swiss mountains. Switzerland next month as the South Korean automaker looks to establish a case for its zero-emissions technology Hydropower provides Norway with Rainer Deutschmann, director of And with more than half of Switzer- in a low carbon world. nearly all its electricity. corporate transportation logistics at land’s energy coming from hydropower, Subsidised model Migros, which operates 900 trucks the country has the potential to extract gen is far more expensive than diesel now els, expectations that fuel cells will have hydrogen, giving them a range of more shuttling between 22 production sites “green” hydrogen from water with elec- but Hyundai hopes that as governments a role to play as the world decarbonises than 400km – far further than heavy The Swiss H2 Mobility Association and nearly 900 shops, told Reuters he trolysis, an energy-intensive but carbon- clamp down on carbon emissions and the has helped push hydrogen-linked stocks goods vehicles powered by electric bat- – a group of nearly 20 firms – will be expected several technologies to play a free process if powered by renewable cost of producing the clean fuel drops, the to their highest in over a decade. teries on the market now. the first users, including the country’s role in decarbonisation. electricity. numbers could start to add up. Norway next? Hyundai declined to say how much its biggest retailer Migros, dairy producer “We will see on each journey what the “It is not enough to produce a truck. McKinsey & Co said in study in Janu- subsidies will amount to. Emmi, grocery chain Coop and filling energy consumption will be depending You have to take care of the entire ecosys- ary that the cost of hydrogen made For now, Hyundai is relying on Globally, the company is betting station operators SOCAR and Tamoil. on the geography and topology,” he tem, find like-minded partners and show with renewable energy could drop to government tax breaks for fuel cell heavily on hydrogen with plans to spend End users such as Migros have com- said. this all makes sense for the customer,” 2 euros/kg by 2030 from 3-4.5 euros trucks and its own subsidises to help $6.7bn on hydrogen technology by mitted to leasing Hyundai’s trucks on “With an electric battery, instead of said Mark Freymueller, chief executive of now – achieving cost parity with diesel make them economically viable for its 2030 and to increase its annual capacity pay-per-use contracts which give them carrying merchandise around you are Hyundai Hydrogen Mobility (HHM). for heavy vehicles, once the relative partners: the end users, filling stations for fuel cells to 700,000. mileage, warranty, services, insurance carrying around the battery. “It is possible to do this with a holistic efficiency of the power sources and the and green hydrogen suppliers. It is starting out with 50 H2 Xcient and access to sufficient hydrogen. You have a 200km range, which you approach and the right mindset,” he told lifetime costs of a truck are factored in. Hyundai’s H2 Xcient trucks have a trucks but plans to put 1,600 on Swiss HHM says its contracts will ensure can use for a city, but you cannot use it Reuters. While hydrogen has long been vaunt- 190 kilowatt fuel cell and seven high- roads by 2025 and is looking to launch Hydrospider and filling stations get for the Alps,” he said. “H2 you can use To be sure, Switzerland’s green hydro- ed as a potential alternative to fossil fu- pressure tanks holding nearly 35kg of similar projects in at least two more sensible margins from the start. for everything.

Asia LNG Hyundai Motor halts work prices steady

Reuters at factory in South Korea Singapore sian spot liquefi ed natural Reuters gas (LNG) prices stabilised Seoul Athis week though traders remained wary regarding overall demand as the spread of corona- yundai Motor shut down a fac- virus threatens to dent the global tory in South Korea yesterday economy. Hafter a worker tested positive The average LNG price for April for the new coronavirus, disrupting delivery into northeast Asia is es- production of popular models such as timated at around $3 per million Palisade sport utility vehicle. British thermal units (mmBtu), Shares of the automaker ended down steady from the previous week, more than 5% after the news, while the but still near record low prices, wider market was down 3.3%. The clos- several traders said. ing dealt a fresh setback to Hyundai “We were worried about China Motor, which has gradually resumed initially but now with the vi- production at local plants hit by a Chi- rus spreading, I don’t think spot nese parts shortage in the wake of the prices will be recovering any time virus outbreak. soon,” a Singapore-based trader South Korea has the most infected said. Global share prices are on people outside China, aff ecting compa- track for their biggest weekly fall nies like Samsung and Hyundai. since the global fi nancial crisis in South Korea on Friday reported 256 2008 as virus-related disruptions new cases, bringing the total number of to travel and supply chains fuel infected to 2,022, as the world prepared fears of recession in the United for a global recession. States and the eurozone. “The company has also placed col- For LNG, some bargain hunt- leagues who came in close contact with ers appeared in the market either the infected employee in self-quaran- seeking or buying cargoes for tine and taken steps to have them tested April while availability for March for possible infection,” Hyundai Motor cargoes are limited, a second Sin- said in a news release. gapore-based trader said. The company added that it was dis- South Korea’s GS Energy, Posco infecting the factory. and Prism Energy International It did not say when production would entered the spot market seek- resume. ing cargoes, while India’s Gujarat Ulsan is less than an hour from Dae- State Petroleum Corp (GSPC) gu, the epicentre of outbreak in Korea. and Bharat Petroleum Corp Ltd Hyundai operates fi ve car factories in (BPCL) sought cargoes for March Ulsan, which has an annual production and April, traders said. capacity of 1.4mn vehicles, or nearly China’s appetite for LNG also 30% of Hyundai’s global production. appeared to be slowly resuming Hyundai employs 34,000 workers with shipments to the world’s sec- there in the world’s biggest car com- ond largest importer of the super- plex. Hyundai Motor Genesis luxury sedans move along a conveyor belt on the production line at the company’s plant in Ulsan. The firm operates five car factories in Ulsan, chilled fuel rising last week for the The factory that was shut down pro- which has an annual production capacity of 1.4mn vehicles, or nearly 30% of Hyundai’s global production. fi rst time in fi ve. duces sport utility vehicles such as the This week, LNG imports into Palisade, Tucson, Santa Fe and Genesis there. It reopened Wednesday. South positive. It resumed production on United States in March, as part of a plan not allow anyone with a temperature China are expected to rise further GV80. Korea’s tech giant Samsung Electron- Monday. to cut its global capacity by 11% that higher than 37.5 Celsius to fl y. by 11% from last week, Refi nitiv A factory run by Hyundai supplier ics shut down a phone factory in the Meanwhile, South Korea’s top carrier, month. It plans to check temperatures One of its fl ight attendants who Eikon data shows. Seojin Industrial had been closed after southeastern city of Gumi over the past Korean Air Lines Co Ltd, said yesterday of passengers travelling to the United served the Incheon to LA route has test- PetroChina on Wednesday the death of a virus-infected worker weekend after one of its workers tested it would cut the number of fl ights to the States before boarding and said it would ed positive for virus. bought a cargo for delivery in April from commodity trader Vi- tol through the S&P Global Platts’ pricing process also known as market-on-close (MOC). This follows two cargoes the China makes bad loans disappear as virus pummels banks fi rm bought in the spot market, traders said, though this could not Bloomberg ing to people familiar with the matter, who less creditworthy in the long run.” ued to under-performer the benchmark be more tolerant when it comes to bad be immediately confi rmed. Shanghai asked not to be named discussing internal Earlier this month, S&P said a pro- index this year in Hong Kong. The four loans.“Saving corporates now is saving It was also not clear if the car- decisions. A man walks at a nearly empty longed health emergency could cause biggest state-owned banks are trading at banks themselves,” Ye said. China isn’t the goes are for delivery into China. shopping mall in Beijing on February 27. China’s non-performing loan ratio to more an average 0.5 times their estimated book only country to have relaxed accounting Still, supply was more than am- Chinese banks are taking extraordinary The moves will buy time for both than triple to about 6.3%, amounting to value for this year, near the record low. standards for banks during a crisis. ple with several cargoes being of- measures to avoid recognising bad loans, Chinese companies and the nation’s $41tn an increase of 5.6tn yuan ($800bn) in bad The NPL measures mark an abrupt In April 2009, during the depths of the fered in the market, traders said. seeking to shield themselves and cash- banking industry, after the outbreak debt. shift in China’s approach toward financial global recession, mark-to-market rules in Oman LNG, Russia’s Sakhalin 2 strapped borrowers from the economic brought much of the world’s second- The push by banks and regulators to regulation. the US were eased after banks com- plant, Angola LNG and Malaysia’s fallout of the coronavirus outbreak. largest economy to a standstill. tamp down NPLs is part of a broader ef- Authorities in Beijing have spent the plained that they resulted in bigger-than- Petronas were all off ering cargoes. Some of the measures, which include But they’re also fuelling concern about fort by President Xi Jinping’s government past three years trying to instil more disci- warranted writedowns on thinly traded Osaka Gas, is also discussing rolling over loans to companies at risk of a buildup of hidden risks on lenders’ bal- to shore up the Chinese economy, which pline in the banking system and develop mortgage securities. a swap deal off ering a cargo for missing payment deadlines and relaxing ance sheets. some forecasters say may suff er a rare credit markets that more accurately price While critics of the decision said it loading from the United States guidelines on how to categorise overdue Some analysts worry that China is quarter-on-quarter contraction in the first risk. As part of that eff ort, they’ve encour- reduced transparency, it arguably helped and buying one for delivery into debt, have the explicit approval of regula- reversing a multi-year push to increase three months of this year. aged banks to be more diligent when big American lenders recover more Japan, sources said. Shipments of tors in Beijing. the transparency of its financial system In addition to pumping billions of yuan accounting for bad loans. quickly from the crisis. three LNG cargoes from Indone- Some lenders are also refraining from and undermining the long-term health of into the banking system to make it easier The outbreak has changed the govern- China’s ability to control the pace sia’s Tangguh LNG Plant to Fujian reporting delinquencies to the country’s banks. “This will provide breathing space,” for lenders to extend credit, authorities ment’s priorities. In a press conference of NPLs during economic shocks is an province in China have been de- centralised credit-scoring system and said Harry Hu, a credit analyst at S&P Glo- have cut interest rates, reduced taxes and this week, Ye Yanfei, an off icial at the advantage of its centralized financial sys- layed because of the coronavirus allowing borrowers to skip interest pay- bal Ratings. “It will also likely undermine pledged to adopt more “proactive” fiscal China Banking and Insurance Regulatory tem, according to Leland Miller, the chief outbreak, Indonesia’s upstream ments for as long as six months, accord- standards, making some Chinese banks policies. Shares of Chinese banks contin- Commission, said policy makers need to executive off icer of China Beige Book. oil and gas regulator SKK Migas said on Thursday. Gulf Times 4 Saturday, February 29, 2020 BUSINESS A Tourism hotspot locks down as Japan’s Hokkaido fights virus

Bloomberg emergency. Residents on the island elaborate snow festivals, has become infections.” Clusters have emerged have been exposed to other infants effective remains to be seen. Tokyo roughly the size of Maine have been a hotbed of the virus, with about a across the island, home to more than in a kindergarten, according to local Japanese Prime Minister Shinzo Abe told to refrain from leaving their third of the country’s total – excluding 5mn people. media reports. on Thursday called for all schools in houses this weekend, Governor those related to the quarantined Tracking the path of some cases One explanation of the rapid spread the country to close from Monday Hokkaido in northern Japan is famed Naomichi Suzuki said in a hastily Diamond Princess cruise ship – hasn’t been possible because some of the virus is Hokkaido’s popularity until the end of their spring holidays, for its ski resorts, natural hot springs scheduled press conference. located on the island. of those infected haven’t shown the as a winter tourism destination. taking the unprecedented move in a and flower-carpeted hills that make it While the home quarantine will only “Many people, not just within Japan, typical symptoms, Suzuki said. The famed Sapporo Snow Festival, bid to combat further spread of the a major tourism magnet. run through the weekend, the state of but from outside the country, come One group of six people who where artists carve giant sculptures virus. Now the most northern of the emergency will remain in place until and go in winter time,” said Yoko attended an exhibit in northern from ice, draws millions of visitors “A lot of research suggests prohibiting country’s four main islands is in March 19, he said. Tsukamoto, a professor of infection Hokkaido in mid-February were from around the world every year. mass gathering, and school closure is virtual lock-down after an upsurge The prefecture, a popular destination control at the Health Sciences infected. Resorts such as Niseko attract skiers effective in early infection stage,” said in coronavirus infections forced among foreigners drawn by its University of Hokkaido. “I think that An office worker at a snow festival enjoying its powdery snow. Tsukamoto. “This is not early stage. local authorities to declare a state of bucolic nature, fresh seafood and traffic is causing the number of was infected, as was a child that may Whether the measures will be It’s a little too late.”

Tehran Jokowi discusses new capital Chamber calls for with SoftBank’s Son, Tony Blair increase

Bloomberg in trade Jakarta with ndonesian President Joko Widodo’s ambitious plan to build a new capi- Ital gathered momentum with Soft- Islamabad Bank Group Corp founder Masayoshi Son and former British Prime Minister Tony Blair holding discussions on the Internews contours of the $34bn project. Karachi Son and Blair said they are looking forward to contributing to building a green, smart and modern capital for ehran Chamber of Com- Southeast Asia’s largest economy. merce and Industry The two, along with Abu Dhabi T(TCCI) president Masoud Crown Prince Mohammed bin Zayed Khansari has said that instead al-Nahyan, are members of an advisory of waiting for trade promo- panel formed by Widodo to steer the tion strategies to be devised capital construction. at the government level, busi- The structure of funding for the cap- ness communities will have to ital will be decided once the regulation sit together and make collective and designs are in place, Son told re- eff orts with a view to further porters in Jakarta after a meeting with promoting trade and investment the president. co-operation between the two While SoftBank is close to fi nalising neighbouring countries. its investment commitment, BlackRock He stressed the need for en- Inc has shown interest in investing, Co- hancing interaction between ordinating Minister for Maritime Af- the business communities of fairs and Investment Luhut Pandjaitan Iran and Pakistan in various sec- said. Jokowi, as Widodo is known, urged tors of the economy through the ministers this week to expedite map- regular exchange of trade del- ping of the project to determine the role egations and organising exhibi- of the private sector in fi nancing the tions to promote bilateral trade construction of the yet-to-be named relations. capital on Borneo island. The govern- Speaking at a meeting during ment aims to start the construction of his visit to the Karachi Cham- basic infrastructure later this year. ber of Commerce and Indus- The government has picked Nikken try (KCCI), he said, “Tehran Sekkei Ltd, a Japanese consultant, and Chamber and Karachi Chamber US engineering fi rm Aecom to assist will have to seriously focus on with the architecture and design of the Masayoshi Son, chairman and chief executive off icer of SoftBank Group (centre), speaks alongside Tony Blair, UK’s former prime minster (left), and Luhut Binsar Pandjaitan, connecting various Iranian and new capital, Pandjaitan told reporters. Indonesia’s maritime aff airs minister, during a news conference in Jakarta. Widodo’s ambitious plan to build a new capital gathered momentum with Son and Blair holding Pakistani companies with each It has previously hired McKinsey & discussions on the contours of the $34bn project. other, besides holding regular Co to prepare a master plan. The new interaction to discuss and ex- capital has already drawn interest of state-owned entities to bear about 80% eventually becoming home to as many capital on the island of Borneo – about people, and the need to spread econom- plore trade and investment-re- investors from China, the Middle East of the cost of building the capital. as 6mn-7mn people. four times the size of Jakarta. ic growth beyond the main Java island lated opportunities in Iran and and the US, according to offi cials. Authorities will move the capital in Indonesia has identifi ed about Regular fl ooding in the Jakarta met- have prompted Jokowi to fast-track the Pakistan.” Jokowi is counting on private and phases from 2024, with the new city 256,000 hectares of land for the new ropolitan area, home to almost 30mn capital relocation. He said due to the sanctions, Iran had focused on producing the required products and serv- ices on its own and also strived to improve bilateral trade with Pakistan’s energy imports regional and neighbouring countries so that the Iranian economy could stay afl oat. Bank of Thailand to rise as production drops He was of the view that the offi cial and documented bi- Internews administration has been working for months lateral trade between the two Karachi to sell new blocks. countries stood at around “At present, the company’s portfolio, $1.5bn but the overall trade fi g- together with its subsidiaries, consists of ure, including the unoffi cial and eases forex rules Pakistan’s reliance on imported energy is 48 exploratory blocks, out of which 28 are undocumented trade, must be expected to mount ahead of an economic PPL-operated (including block-8 in Iraq being somewhere between $3bn and turnaround as domestic production has con- operated by PPL Asia) and the remaining 20, $4bn. Bloomberg tinued to drop amid no major new discoveries including three off shore blocks in Pakistan “Iran’s trade volume with Iraq Bangkok for quite a long time. and one onshore block in Yemen, are partner- stood at $13bn and at around Meanwhile, the government has not yet operated,” PPL reported. $10bn with the UAE, followed auctioned new exploration blocks in the In the PPL-operated blocks, four wells (two by substantial trade with Tur- he Bank of Thailand eased country. exploratory and two development) were key and others. some foreign-exchange Pakistan’s second-largest oil and gas drilled in the first six months of FY20 com- We look forward to seeing Pa- Trules as part of a previously exploration firm, Pakistan Petroleum Limited pared to the drilling of three exploratory wells kistan at the same level in terms announced plan to temper the (PPL), reported an 11% drop in gas production in the corresponding period of last year, the of trade volume which Iran has baht. to 126,934mn standard cubic feet (mmscf) in state-owned firm said. been enjoying with Iraq, the The threshold for proceeds the first six months (Jul-December 2019) of the Two discoveries were made during the UAE, etc.” that do not need to be repatriated current fiscal year compared to 142,441 mmscf period under review – one in a PPL-operated Khansari said, “There are a rises to $1mn from the current in the same period of last year. block ie Margand X-1 (Margand block) and lot of similarities and a huge $200,000, eff ective March 2, the Similarly, its crude oil, natural gas liquids another in a partner-operated block ie Bitro-1 potential to improve trade and central bank said in a statement and condensate production fell around 6% to (Latif block), it said. investment ties, hence the two yesterday, adding that the “re- 2.69mn barrels in the half-year period com- The analyst said the country’s reliance on chambers must make collective laxation includes not only export pared to 2.86mn barrels in the corresponding imported energy may increase in the absence eff orts. proceeds but also other income as period of last year, according to PPL’s detailed of no new major oil and gas discoveries for In this regard, information well.” half-yearly report sent to Pakistan Stock several years. about capable companies hav- Exporters with proceeds equal Exchange (PSX). Demand for energy would surge ahead of ing good reputation must be to or above the new threshold “PPL is not the only exploration firm whose an economic turnaround, which was in the shared to facilitate trade while can use them to off set foreign- production is on the wane, but almost all off ing, he said. equal attention must also be currency expenses, without hav- Veerathai Santiprabhob, governor of the Bank of Thailand, speaks the oil and gas exploration and production PPL’s profit decreased 21% to Rs24.55bn paid to follow-ups on numerous ing to repatriate the funds, the during an interview in Bangkok. The Bank of Thailand eased some firms are experiencing the same trend in the (earnings per share Rs9.02) in the six-month deals.” central bank said. It added that foreign-exchange rules as part of a previously announced plan to country,” JS Global Research analyst Arsalan period under review compared to Rs31.03bn He requested Karachi Cham- these steps will help fi rms cut temper the baht. The threshold for proceeds that do not need to be Ahmed said. (earnings per share Rs11.41) in the correspond- ber to send a high-level trade fund transfer costs and man- repatriated rises to $1mn from the current $200,000, eff ective The hydrocarbon production is dropping ing period of the previous year. delegation to Iran after Rama- age foreign-exchange risk, while March 2, the central bank said in a statement yesterday. continuously due to no new major discoveries The oil and gas exploration company zan in order to explore new av- also promoting balance in capital for quite a long time. continued to bear unprecedented stress on its enues of trade and investment fl ows and reducing pressure on of markets strategy at SCB Secu- an eff ort to curb gains in the baht. “Production from wells is high in the begin- liquidity on account of muted collection from co-operation and discuss ways the baht. rities Co. in Bangkok. “Because In the fi rst half of the year, liberal- ning but drops gradually over a period of time. government-nominated natural gas custom- and means as to how numer- Baht strength last year hurt right now, the exports sector is ise the foreign-currency deposit The country has continued to take production ers, PPL said in the report. ous trade barriers and obstacles Thailand’s economy – which re- facing the coronavirus crisis and account framework so individuals from old fields, which is why the drop is being Total receivables increased 24% and stood could be dealt with eff ectively. lies on exports and tourism – and may not hold any cash in foreign and local companies can keep for- experienced for quite a long time,” he said. at Rs282bn on December 31, 2019 compared to Also speaking on the occa- offi cials struggled to restrain the currency.” He added that the re- eign currency in Thailand. Ahmed emphasised that exploration firms Rs227bn on June 30, 2019. sion, Iranian Consul General appreciation. The picture in 2020 laxation would have a “very small Relax rules so insurance com- needed to step up eff orts for making new “Your directors consider natural gas and Ahmed Mohammadi stated that is very diff erent, with the currency impact” as most large companies panies can invest abroad more discoveries. power sector circular debt as the most critical the commercial section of Ira- weakening about 5% against the have treasury centres for currency easily. The monetary policy com- However, the government has yet to auction risk to the achievement of strategic objectives nian Consulate had been mak- dollar due to the coronavirus out- management. mittee earlier this month said it new blocks for finding fresh oil and gas depos- of the company. ing eff orts to promote trade and break. That’s made it the weakest Bank of Thailand governor Veer- remained concerned “the baht its in the country. Accordingly, besides escalation of recovery investment between the two over the period in an Asian basket athai Santiprabhob said in a Janu- might not be consistent with eco- Current and previous governments have eff orts, the company has actively engaged countries. tracked by Bloomberg. ary interview – before the virus nomic fundamentals” and en- not auctioned new exploration blocks for with all key stakeholders at relevant ministries The business community of “In terms of sentiment, I don’t crisis fl ared – that the central bank couraged the central bank to con- around three to four years now. to explore possible mechanisms for the earli- Karachi must come forward to think the timing is right,” said would take further steps to ease sider additional measures to spur The current Pakistan Tehreek-e-Insaf (PTI) est resolution of the subject matter,” it said. strengthen trade ties with its Jitipol Puksamatanan, the head restrictions on capital outfl ows in capital outfl ows. Iranian counterparts, he said. Gulf Times Saturday, February 29, 2020 5 BUSINESS

Asia markets plunge as virus fears fuel global turmoil

AFP Singapore sank 3.1%, Jakarta dived 4.1% Hong Kong and Bangkok lost 3.4%. Manila eased 2.5%, with Wellington 1.5% in the red. In early trade, London, Paris and Asian and European equities spiralled Frankfurt each plunged 3.3%, having all downwards yesterday, extending a col- lost more than 3% on Thursday. lapse in world markets that has wiped The losses have seen many markets trillions of dollars off valuations as the lose around a tenth of their value in just coronavirus spread rapidly around a week. the world with the WHO warning the The rush to safety has also seen deadly epidemic was now at a “decisive the dollar surge against most higher- point”. yielding, riskier currencies, with the Tokyo, Shanghai, Sydney, Singapore New Zealand dollar, the South African and Seoul were among the bourses rand and the Russian rouble all more that fell more than 3% while Jakarta than 1% lower. was hammered more than 4%. Australia’s dollar, the Indonesian The casualties have put equities rupiah and the Indian rupee were also around the world on course to record sharply down. their worst week since the global But the dollar was well off against financial crisis more than a decade the safe-haven yen. ago as investors run to the hills on The virus has now killed 2,856 fears the virus will smash the global people and infected more than 83,000 economy. worldwide, with an increasing number And while the panic has already of new cases being reported each day. caused a bloodbath on trading floors, Lithuania, New Zealand and Nigeria there are warnings there could be yesterday reported their first cases, People walk by the Bombay Stock Exchange building in Mumbai. The Sensex closed down 3.64% or 1,448.37 points to 38,297 yesterday. worse to come. as off icials around the world move to The Dow suff ered its biggest points contain the outbreak in their countries loss on record, shedding almost 1,200 as fears of a global pandemic grow. points, while its 4.4% drop marked the The operator of Tokyo’s Disneyland worst performance in two years. and DisneySea closed the parks for The S&P 500 and Nasdaq also around two weeks. tanked more than 4%. Japan and Iraq have also ordered the The VIX “fear” index is now at its closure of schools. highest level since 2011 during the World Health Organisation boss Sensex crashes 3.64%; European debt crisis. Tedros Adhanom Ghebreyesus said on President Donald Trump blamed the Thursday the world was at a “decisive market plunge on the media coverage point” and countries could still contain of the coronavirus and worries about the epidemic if they “act aggressively Democrats winning the White House now”. “No country should assume it race. won’t get cases; that could be a fatal The heavy selling came as authori- mistake, quite literally. rupee slumps to 72.17 ties in California said they were moni- This virus does not respect borders,” toring some 8,400 people for Covid-19 Tedros said in Geneva. after off icials confirmed a woman had The rate of increase in China con- contracted it without travelling to any tinues to fall and there are signs the of the outbreak-hit regions. country is slowly creaking back to life “Even though the market is pricing in with shops reopening, including Star- the fear of economic issues and disease bucks, which has resumed operations against the dollar hitting the US, we haven’t actually seen at all its outlets. the emergence of clusters” in the US, But Moody’s Analytics said the Bloomberg, Reuters pick-up in growth for the first time in ing earnings,” said Vineeta Sharma, economic fallout could be contained Steve Englander of Standard Chartered regional economy faced severe reper- Mumbai seven quarters. The recovery remains head of equity research at Narnolia within a few months. Despite a weak- told Bloomberg TV. “Once that happens cussions. uneven, with a slew of high-frequen- Financial Advisors Ltd in Mumbai, er rupee, IT stocks in Indian markets we will see another sell-off .” In Tokyo, the Nikkei 225 closed cy indicators showing consumption, “We are going cautious on Nifty and saw strong selling pressure yester- After Thursday’s battering, Asia down 3.7% to 21,142.96 points; Hong ndian stocks plunged, with the which accounts for 60% of GDP, still large-cap stocks.” day. “The Indian markets tracked the picked up the baton. Tokyo tanked Kong — Hang Seng ended down 2.4% to benchmark indexes posting their weak. All 19 sector sub-indexes compiled rout in global indices and crashed as 3.7%, Shanghai dived 3.7%, Seoul gave 26,129.93 points and Shanghai — Com- Iworst drop in more than four The global risk aversion has also by BSE Ltd dropped, led by a gauge of coronavirus’ repercussions on global up 3.3% and Sydney dropped 3.3%. posite closed down 3.7% to 2,880.30 years, as the fast-spreading corona- turned the tide for flows into Indian metal companies which dropped 7%, economy continue to deepen. Hong Kong retreated 2.4%, while points yesterday. virus roiled global markets. assets. Foreigners sold a net $934mn the most in five years. There are concerns that the out- The BSE benchmark Sensex logged of shares from Monday through All Sensex shares fell except ITC break is spreading to the world’s larg- its second-worst point-wise fall yes- Thursday, set for the biggest outflow Ltd, which rose 0.1%. est economy – USA as well as certain terday, as investors flocked to safe since August. They also unloaded Reliance Industries contributed parts of Europe and that will adverse- haven assets. $761mn of bonds, the most since the most to the Sensex’s decline, with ly impact the global supply chains The market crash eroded Rs5.20 April. a 4.2% tumble; Tech Mahindra Ltd big time, thereby affecting economic lakh crore of investor wealth in a sin- “As the coronavirus is spreading slumped 8.1%. growth of most of the nations. gle day. The biggest fall happen on across countries, the fear factor is Meanwhile the Indian rupee (INR) In the Indian markets, even defen- August 24, 2015, when the 30-pack going up,” said Rusmik Oza, head of yesterday slumped to a six-month sives like IT tumbled despite a weak had crashed 1,624 because of melt- fundamental research at Kotak Secu- low against the US dollar (USD), rupee indicating increasing anxiety down in Chinese market and a major rities Ltd. “The fall in Nifty was ac- tracking a rout in domestic equi- amongst investors,” said Ajit Mishra, spike in oil price. centuated after it broke the 200-day ties. The rupee yesterday fell to a VP Research at Religare Broking. The 30-share Sensex closed 3.64% moving average. It has since followed six-month low of 72.27 against the Global stock markets were headed or 1,448.37 points lower at 38,297, the developed markets.” US dollar as compared to its previous for the worst week since the depths of while the 50-share Nifty slumped “While there’s no telling what will close of 71.56. the 2008 financial crisis as investors 3.56% or 414 points to close at 11,219. happen in the next trading session, The rupee closed at 72.17 against ditched risky assets on fears the coro- For the week, the indices have shed my sense is that we will be much bet- the US dollar, after trading in the navirus would become a pandemic 6.98% and 7.28%, respectively. ter-off, a couple of months’ down the range of 71.81 to 72.27 during the and derail economic growth, Reuters Not unexpectedly, the India NSE road. day. Other Asian currencies were reported. Volatility Index, a gauge of expected The market fall so far, is factoring also weak today as investors dumped Asian stocks tracked another over- price swings, jumped the most in in a reasonably bad case-scenario,” emerging market assets to seek the night plunge in Wall Street’s bench- more than three years as investors said Amar Ambani, senior president safety of US treasuries and other as- marks yesterday with the markets A pedestrian walk past an electronic quotation board displaying share braced for more pain. and head of research at YES Securi- sets like gold amid the rapid spread of in China, Japan and South Korea all prices of the Nikkei 225 Index (left) and New York Dow (right) in Tokyo. The The coronavirus looms as a new ties India Ltd in Mumbai. coronavirus epidemic outside China. posting heavy losses. Nikkei 225 closed down 3.7% to 21,142.96 points yesterday. threat to the fragile recovery in In- “If the coronavirus issue continues A spike in new infections outside MSCI all-country world index fell dia’s economy, with data showed a for a longer time, it will start affect- China has shattered hopes that the 0.3% after 3.3% drop on Thursday.

Emerging local bonds prove Japan’s yen soars as virus spread resilient amid virus rout

Bloomberg Among other top performers, India’s sparks stampede to safety Singapore debt has handed investors a gain of 2.3% as policy makers pumped out funding for local banks and introduced Reuters Coronavirus jitters are pummelling unconventional debt-purchase measures Singapore risk assets around the world but most such as the so-called “Operation Twist” to emerging local-currency debt is so push down yields. far holding up just fine. Bonds from Bonds from the Philippines and Thailand he Japanese yen returned as Argentina and India are among the have also delivered positive returns, a beacon of safety yester- biggest gainers this month, bolstered by aided by central bank support. Tday, hitting a one-month the prospect of central bank support. The decline in yields for emerging-market high against the dollar, as mount- The average yield on local-currency EM debt has largely offset the impact on ing fears the world was on the cusp bonds has dropped to 3.85% this week investors of weakening exchange rates. of a pandemic sent global fi nancial from as high as 4.7% in May last year as Argentine and and Indian bonds have markets into a tailspin. investors have sought to place money been among the top performers even Currency trading has been less in fixed-income assets, according to the though the peso has dropped 2.9% this panicky than the week’s share mar- Bloomberg Barclays Global EM Local month, while India’s rupee has fallen ket plunge, but the mood is much Currency Bond Index. The gauge has only nearly 1%. the same and a jump in US rate cut fallen 0.1% in February in dollar terms, Not all debt markets in developing expectations has only added to the after rallying 2.4% during the previous economies have escaped unscathed from yen’s allure. two months. the current bout of market mayhem. The yen rose 0.7% to a month- “Most EM bond yields are lower given Bonds in Turkey and Brazil have both high of 108.85 per dollar yesterday, the expectation that central banks will handed investors losses, largely because leaving the greenback down 2.4% employ a more dovish monetary policy of their weakening currencies. Turkish for the week, its biggest loss on the stance in the current uncertain market bonds have lost 8.3% as the lira tumbled Japanese currency in more than environment,” said Karan Talwar, senior 4%, while securities in Brazil, home to the three years. The yen rose 0.7% to a month-high of 108.85 per dollar yesterday, leaving the greenback down investment specialist for emerging- worst-performing currency this month, Asia’s export currencies were 2.4% for the week, its biggest loss on the Japanese currency in more than three years market debt at BNP Paribas Asset dropped 3.9%. crunched. The Australian dollar Management in Hong Kong. While there are broader macro drivers tanked 0.7% to a fresh 11-year low of move, it feeds on itself.” Hopes certainty makes it prudent to think of the US Federal Reserve lowering “This is also helped by the fact that at play, each country has its own on the dollar and it lost twice as the coronavirus outbreak could be about where the AUD and NZD interest rates. inflation pressures in most economies are idiosyncratic factors that will drive its much against the yen. contained in China have vanished may fall,” said ANZ FX head Daniel Investors are now expecting relatively benign, allowing central banks asset prices, said Talwar at BNP Paribas The New Zealand dollar fell 1% this week as infections spread Been. While much is still unknown three Fed cuts by mid-year, be- to support the economy.” Asset, which oversaw $484bn at the end on the greenback and 1.7% against around the globe. about the virus, measures to con- ginning with one in March which Argentine bonds are way out in front, of last year the yen. “We haven’t found any The Aussie last bought $0.6519 tain it have wreaked havoc on sup- had been rated just a 9% chance a returning 9.6% in February, according to “If the situation around Covid-19 reason to stabilise,” said Westpac and the kiwi sat at a four-month ply chains, the world’s economy week ago. the Bloomberg Barclays index. continues to worsen, these trends of FX analyst Sean Callow. low of $0.6233. and fi nancial markets. That sent the euro sharply The nation’s sovereign debt has rallied lower bond yields and EM FX depreciation “Every half hour or so we get a ANZ analysts said, if the out- In currencies, the most marked higher overnight, as investors un- as the central bank has cut interest rates will continue to persist,” he said. new headline about a factory clo- break worsened, the Aussie could shift this week has been the pause wind carry trades, and has off ered seven times in less than two months to “However a stabilisation of the situation is sure, or a case in a country that go as low as $0.58 and the kiwi to in the dollar’s advance as markets a slight brake on the massive fl ight revive growth. likely to see a reversal of this trend.” hasn’t had one before...this sort $0.55. “The current degree of un- dramatically re-price the chance from Asian currencies. Gulf Times 6 Saturday, February 29, 2020 BUSINESS

ING alleges father-son fraud after commodity fi rm collapses

Bloomberg found nothing that linked him to fraud. multiple “overlapping” bills of lading, ties trader Tewoo Group Corp last year Resources in February. There was no to negotiate a proposal from an inves- Hong Kong Ng Say Peck couldn’t be reached for or lists of shipment goods, to obtain defaulted on its dollar bonds. reply to an e-mail to Say Peck’s former tor to inject funds and repay its credi- comment. fi nancing from multiple banks for the ING alleged in its February 12 fi ling company seeking comment from him. tors, according to Ng’s lawyer. Agritrade International, whose same shipment. Commerzbank be- that Agritrade’s current predicament A Bloomberg reporter who visited his ING Bank also alleged that Agritrade enders have accused a Singapore businesses span palm oil and coal min- lieves that shipments of coal it had fi - is due to “a massive and pre-meditated listed residence in Singapore was told and Ng Xinwei failed to disclose a raid commodities fi rm of fraud after a ing, is the latest commodities fi rm to nanced didn’t exist, after it hired a coal fraud” perpetuated by Ng Xinwei and that he was not there. The reporter left by Singapore’s Commercial Aff airs De- Ldebt default left them facing po- come under fi nancial strain amid coal specialist to investigate, according to a Ng Say Pek, who founded the business. a note seeking comment on the allega- partment of Agritrade’s offi ce on Janu- tential losses on $600mn of liabilities. and oil market turmoil. Its subsidiary fi ling. Bazul Ashhab, a lawyer represent- tions and there has been no reply from ary 15. ING Bank NV alleged that Agritrade Agritrade Resources Ltd, which oper- ING, MUFG, Natixis and Commerz- ing Ng Xinwei, cited an affi davit by Ng Say Peck. A spokesman for the department, International Pte, its chief executive ates mines in Indonesia and China, is bank declined to comment. A spokes- saying he’s never been involved in the In the February 10 court fi ling, Ng which is the principal white-collar offi cer Ng Xinwei and his father Ng Say in default on a total of $244mn of loans. person for Malayan Banking said the company’s trading business, which Xinwei said his father fl ew out of Sin- crime investigation agency in the city- Peck misrepresented the company’s fi - A group of 15 lenders including ING, bank is unable to comment on spe- was run by Ng Say Peck. gapore around December 21, he under- state, said that it’s “inappropriate to nancial position to various bank lend- Malayan Banking Bhd, Natixis, MUFG cifi c clients and that it has “a stringent When allegations of fraud surfaced, stood that Say Peck went to China, and comment on ongoing investigations.” ers, in a February 12 fi ling to a Singa- Bank and Commerzbank AG held ap- provisioning policy in place and takes Ng Xinwei immediately took steps to had no knowledge if his father intend- Agritrade International started off pore court. proximately $600mn of Agritrade In- appropriate measures as and when re- increase the scope of an independent ed to return to Singapore. as a family-run palm oil trading fi rm Agritrade offi cials declined to com- ternational’s $1.5bn of liabilities, ac- quired to manage the asset quality of fi nancial adviser’s role in carrying out A Singapore court dismissed this in 1979. ment. Ng Xinwei noted in a February cording to the ING Bank fi ling. our entire credit portfolio.” investigations, which show that there month an application by Agritrade In- Hong Kong-listed Agritrade Re- 10 court fi ling that allegations of fraud The amount held by Malayan Bank- Commodities fi rms have been under is nothing that links Ng to the fraud ternational for a moratorium against sources said in November that coal perpetrated by Agritrade International ing was $107.6mn, while ING and severe stress globally, as China’s eco- perpetuated against Agritrade Inter- lenders taking action, and it appoint- prices have been declining due to “and/or its directors” had been made MUFG held $96.9mn and $77.3mn re- nomic growth slows and oil prices re- national, the lawyer quoted Ng’s affi - ed interim judicial managers over the “shrinking coal import” from major by banks including MUFG Bank Ltd spectively, ING’s February 12 fi ling de- main depressed. A string of coal min- davits as saying in an e-mail. company. markets like China and India, and un- and Natixis SA. Ng Xinwei’s lawyer tailing banks’ exposures showed. ing fi rms fi led for bankruptcy in the US Ng Say Peck stepped down as chair- Since then, Ng Xinwei still remains a der such unfavourable markets, the said an independent fi nancial adviser ING alleges that Agritrade issued last year. In Asia, Chinese commodi- man of Hong Kong-listed Agritrade director and is assisting the managers group reduced its coal production.

Tencent-backed WeDoctor is hiring new CFO to lead Hong Kong IPO

Bloomberg sponds to emergencies, even Hong Kong with a mechanism built after the Sars outbreak in 2003. The startup said in a state- eDoctor, one of ment it launched an online China’s biggest platform dedicated to treat- Wonline healthcare ing coronavirus cases on Jan. startups, is hiring a new chief 23 and has helped facilitate financial officer to spearhead 1.4mn consultations with a Hong Kong initial public doctors in the month since it offering, according to people began. familiar with the matter. Longer term, startups like John Cai, formerly chief WeDoctor could play a pivot- executive for AIA Group al role in a nationwide effort Ltd’s operations in key mar- to wrench its ailing health- A pedestrian walks past the Stock Exchange of Thailand building in Bangkok. The tumble this week has pushed equity benchmarks of Thailand, Indonesia and the Philippines to kets including China, Malay- care sector into the modern rank among the world’s 10 worst-performing major markets this year. sia and Vietnam, will join as age. Beijing envisions a 16tn CFO in a few weeks, the peo- yuan ($2.3tn) healthcare ple said, requesting not to be industry by 2030 and, in a named because the matter is blueprint laid out in 2016 private. Cai will oversee the called “Healthy China 2030,” company’s listing and po- vowed to improve public tentially a pre-IPO financ- health emergency prepared- ing round, the people said. ness and response capabili- WeDoctor has reached out ties to match those of devel- to investment banks and is oped countries. World’s biggest virus expected to pick underwrit- Founded by artificial in- ers over the next few months, telligence maven Jerry Liao they said. Jieyuan in 2010, WeDoctor WeDoctor, backed by Ten- aims to compete with both cent Holdings Ltd, joins a fellow startups and major growing contingent of tech Corps such as Alibaba Group giants hoping to revolu- Holding Ltd in the burgeon- victim in equities tionise a traditional health- ing field of online healthcare. care industry after the novel It needs capital to expand. coronavirus underscored its It has yet to decide whether shortcomings. to include its cloud business The startup, whose busi- – where sensitive patient in- ness spans insurance policies formation and government and medical supplies to on- data reside – in the envi- line appointment-booking sioned Hong Kong public of- is Southeast Asia and physical clinics, is aim- fering, the people said. And ing for a $10bn valuation it’s still too early to judge Bloomberg Southeast Asia’s biggest economies count America. The benchmark stock gauges of until we see economies entering a reces- when it eventually goes pub- whether it can achieve its Manila China as their top trading partner. Open Malaysia and Thailand entered bear mar- sion and the damage of the coronavirus lic, one of the people said, al- $10bn valuation target, one capital accounts also don’t help when fear kets this week, while those of Indonesia comes out in tangible numbers,” said most double its last price tag of the people said. grips markets. and the Philippines are down 19% from Manny Cruz, a strategist at Manila-based of around $5.5bn. Cai, who joined AIA in he S&P 500 Index may have wit- “The markets are starting to price in an previous highs. Singapore’s index has lost Papa Securities Corp. “The negative sen- The startup is currently 2009, helped the insurer nessed its quickest correction ever, escalation in Covid-19 from a regional epi- 17% from its May 2018 peak, and Viet- timent is pervasive.” targeting an IPO in late 2020 bolster its business in China Tbut one of the biggest stock-market demic to a global pandemic,” said Alan Ri- nam’s is still down 27% from its high two Still, there are some green shoots in or 2021, another person said. before driving expansions victims of the coronavirus epidemic has chardson, a regional fund manager at Sam- years ago. Southeast Asia: Indonesia has yet to re- A WeDoctor representative in Vietnam and Malaysia. been Southeast Asia. sung Asset Management in Hong Kong. Thailand is among those hit the hardest port any case, while the infection rate in declined to comment in an He will also join WeDoctor’s The tumble this week has pushed equi- Southeast Asia equities are getting hurt in Southeast Asia by the plunge in Chinese Singapore has slowed and been outpaced e-mailed statement. An AIA board as vice chairman, the ty benchmarks of Thailand, Indonesia and more than others “because they don’t have visitors, while Singapore has warned it is by recoveries. But for most investors and representative didn’t imme- people said. the Philippines to rank among the world’s closed capital accounts,” he added. bracing for a 25% to 30% decline in arriv- analysts, the outlook for Southeast Asian diately respond to a request His new employer counts 10 worst-performing major markets this The virus epidemic is growing at a rapid als this year. equities remains hazy as the epidemic for comment. China Development Bank year. Panic selling has taken the MSCI pace in countries outside of China. The These countries are facing downside wreaks havoc on lives and supply chains. The Covid-19 epidemic Capital, Shanghai Fosun Asean Index more than 17% below a high number of confi rmed infections has ex- pressure for economic forecasts, leading “It’s hard to see a recovery for the mar- has brought inadequacies in Pharmaceutical Group Co reached in July. ceeded 2,300 in South Korea while more policy makers to unveil support measures. ket isn’t looking at fundamentals unless the country’s medical care and AIA as backers. The region’s heavy reliance on China cases appeared in Italy, Iran and Kuwait. Indonesia announced $742mn of fi scal in- the viral scare tapers down,” said Rachelle system into stark relief, ex- The company said in for trade and tourism means the disrup- Nigeria confi rmed on Thursday the fi rst centives this week for its tourism, airline Cruz, an analyst at AP Securities Inc in posing an over-reliance on a statement it connects tions caused by the virus are dealing a reported infection in sub-Saharan Af- and housing sectors hit by the virus. Manila. “Investors are pricing the corona- big hospitals in major cities 360,000 doctors with some bigger blow to its economy. All six of rica, a day after Brazil had the fi rst in Latin “I don’t think we have seen the bottom virus will have a widespread impact.” and flaws in how the state re- 210mn registered users. Commodities savaged in sell-off as coronavirus fears rise

Bloomberg also keeping employees from going ICE Futures Europe exchange but later hitting their lowest levels in more than Singapore abroad and several events this week parred some losses. WTI futures for three years. at the oil industry’s biggest gathering April delivery also fell to the lowest in LME copper fell as much as 1.5% to were cancelled. That’s spurred a over a year. $5,533 a ton, with inventories in China Global commodity prices continued to stampede away from risk assets, with “Whatever production cuts that might expanding to the highest levels in tumble yesterday as the fast-spreading no appetite for dip-buying before the be forthcoming next week are too almost three years, indicating slumping coronavirus epidemic sparked fears for weekend. little, too late,” said Howie Lee, an demand. global growth prospects and demand “It has a major impact on demand economist at Oversea-Chinese Banking Mining stocks continued to tumble. The for raw materials from fuel to food. when public life virtually comes to a Corp in Singapore. “If Opec+ cuts by Bloomberg World Mining Index posted International benchmark Brent crude standstill,” Carsten Fritsch, commodity 1mn barrels, that can shore up prices the steepest intraday loss since 2016, slipped below $50 a barrel for the first analyst at Commerzbank AG, said by a little, but anything less is going to and Rio Tinto Group, BHP Group and time since December 2018, and shares phone. “Even gold seems not immune disappoint.” Glencore Plc all declined. in mining companies plummeted. A to this at the moment.” Here’s a breakdown of some of the Agriculture: In crops, palm oil headed gauge of grain prices is also heading for Oil in London is on course for its other key moves in commodities: for its worst week in 11 years in Malaysia a back-to-back monthly loss, and even biggest weekly loss since 2016 ahead of Metals: Gold futures fell as much as on slumping petroleum prices, weaker gold – a haven asset – has come under a crucial meeting next week in Vienna 1.2% to $1,622.50 an ounce, set for exports and concern about the rapid pressure. between Opec and its allies about a weekly loss. Standard Chartered spread of the coronavirus. The coronavirus epidemic continues whether to extend the current deal to Bank said the drop in bullion may be Chicago wheat futures are also to spread, now more quickly outside of curb output and keep prices stabilised. driven by investors selling the metal to headed for the worst weekly loss China than within the country, as the Saudi Arabia wants the Organisation of cover margin calls in tumbling equity since March. News that China’s edible first cases are reported in Latin America Petroleum Exporting Countries and its markets, although it was positive on oil and animal feed factories are and Sub-Saharan Africa and travel allies to agree to collective production the outlook longer term as the Federal running at pre-virus levels has failed and event restrictions are imposed in cuts of an additional 1mn barrels a day. Reserve will ease interest rates. to stoke soybean prices. Raw sugar Europe and Asia. Brent crude for May delivery sank as Base metals are heading for a second led declines among soft commodities, Major commodity trading houses are much 4.2% to $49.58 a barrel on the monthly drop with zinc and aluminium falling 1.7% to 13.96 cents a pound. Gulf Times Saturday, February 29, 2020 7 BUSINESS

Potanin forges Traders bet central banks won’t ahead on tokens for keep calm over virus for long metals, air tickets Bloomberg London Bloomberg Moscow nvestors aren’t buying the idea that central banks’ wait-and-see ap- Iproach to the coronavirus will last, Russians may soon be able to ramping up bets on interest-rate cuts use digital tokens to buy metals, that could start within months. book air tickets and transfer ski Money markets now see three Feder- passes from Vladimir Potanin’s al Reserve reductions this year – start- businesses after the billionaire ing next month – and one by the Euro- got the go-ahead for his block- pean Central Bank in July. The Bank of chain platform. England will cut in May, according to a Potanin has long signalled similar metric. The ECB is in a tough- plans to start crypto tokens for er position than other central banks, metals, but can now expand with limited ammunition if the situa- the project to the consumer tion worsens, and top offi cials includ- side of his empire after getting ing President Christine Lagarde have central bank approval last signalled that more time is needed to week. The aim of the platform weigh the impact of the virus outbreak. is to speed up transactions and But even for those with more space, reduce paperwork and interac- such as the Fed, there are doubts that tion between customers and monetary policy response will prove ef- companies. fective, with the shock concentrated on “To some extent Russia the supply side of the economy. appears ahead of many other “The problem with doing monetary jurisdictions in terms of digitali- stimulus is that it will have limited im- sation,” Potanin, Russia’s richest pact on the eff ects of the virus,” said man, said in an interview near Jens Peter Sorensen, chief analyst at Moscow. “The central bank gave Danske Bank, in Copenhagen. “The us a very wide mandate.” Covid-19 virus is keeping people from The commodities industry work, the supply chain is disrupted and is looking to digital trading sys- tourists are not going to Italy. Monetary tems using ledger technology to policy can do very little.” cut costs and administration and So far, the view among central bank- The headquarters of the European Central Bank in Frankfurt. The ECB is in a tougher position than other central banks, with limited ammunition if the situation worsens, track materials through the sup- ers across the world is it’s too early to as- and top off icials including president Christine Lagarde have signalled that more time is needed to weigh the impact of the virus outbreak. ply chain. The tech and digital sess what the economic damage will be. currencies are also being used Bank of Korea Governor Lee Ju- member Isabel Schnabel said they need protection against price swings in the we get back up,” said Neville Hill, the growth. Its track record of sensitivity more widely for things like rent- yeol said the appropriate response at more clarity about the implications of euro jumping, a sign traders clearest bank’s chief European economist. to investors’ rate expectations makes ing cars or voting on soccer-club this stage was targeted support for the the virus, echoing Fed Vice Chairman expectation is for turbulence rather If the major central banks do hold the recent tilt toward predictions of a decisions, although blockchain is companies most aff ected by the big- Richard Clarida’s statement this week. than direction. While policy makers fi re, it would be one of the rare times cut stand out. This time last year, trad- yet to take off on a large scale. gest virus outbreak outside China, not “They would prefer not to rush to don’t want to rush, there’s a growing since the fi nancial crisis that they ers in money markets slashed bets that The platform, called Atom- a wider-reaching rate reduction. judgment and stay on hold for now,” view that what was meant to be a year haven’t capitulated to money market the ECB would raise interest rates. By yze, will also be available in Bank of England’s outgoing governor Roberto Perli, a partner at Cornerstone of central banks on hold will instead sentiment. September, it had cut borrowing costs the US and Switzerland, but Mark Carney warned that the coro- Macro LLC in Washington, said of the see monetary stimulus in some of the While policy makers probably won’t to a record low of -0.5% and restarted limited to companies and not navirus could result in an economic Fed. The likely outcome is “they don’t world’s biggest economies. admit to being out of options, they’ve quantitative easing. individuals. It’s expected to start growth downgrade for the UK, Sky cut in March but issue a statement that Even if the situation improves later been keen to keep the pressure on gov- The ECB’s Lagarde has been call- by year-end once a Russian law News reported. MUFG said the country makes it clear they are ready to act if the this year, the hit in the fi rst half could ernments to be the fi rst responders if ing for more fi scal spending, refl ecting on digital financial assets comes was particularly vulnerable due to its situation deteriorates.” be severe. Credit Suisse Group AG on the nascent recovery gets cut short. thinking that monetary tools are close into force and after further ap- high current-account defi cit. Meanwhile, investors are buying up on Thursday cut its 2020 global growth The Fed is one of the few central to being “maxed out.” provals abroad. The governor of the Bank of France, havens, sending yields on US Treasur- projection to 2.2% from 2.6%, and banks with room to act, but its domes- Governments’ response has been For Potanin, the biggest Francois Villeroy de Galhau, said that ies to record lows and putting the dol- its euro-area outlook to just 0.5%. It tic economy remains relatively strong. muted, particularly from Germany, al- impact could be on metals. He the virus is a supply shock and mon- lar on course for its best month since sees the ECB lowering rates by 10 ba- The ECB, by comparison, already has though it has revealed plans to tempo- said last year that crypto tokens etary policy may not be the right re- July. And volatility has returned to the sis points in June. “There’ll be a lot of interest rates well below zero and its rarily suspend limits on public borrow- may eventually account for a sponse, and ECB executive board currency market, with demand for damage done on the way down before stimulus policies have struggled to lift ing to allow its regions to spend more. fifth of sales at MMC Norilsk Nickel PJSC, the world’s biggest palladium and refined nickel producer. Norilsk Nickel will initially test tokens backed by Citadel Securities expands palladium, cobalt and copper Coronavirus chaos slams credit and plans to eventually expand to other metals, Atomyze said in its options business a statement. Companies testing markets, brings deals to a halt the platform include Trafigura Bloomberg clients, with about 40 signed on to trade equity Group Ltd, Traxys SA and New York options. Such relationships have helped make Umicore SA. Citadel Securities one of the largest trading firms Bloomberg ings from disruption caused by The number of coronavirus Tokens backed by metals in the world, generating $3.5bn of revenue in London the virus, which has seen huge cases continues to climb, with the can be swapped for physical Ken Griff in’s Citadel Securities, already a giant in 2018 from markets including stocks, Treasuries parts of global supply chains global death toll nearing 3,000. supplies. Customers who don’t trading US stock options, has a plan to gobble up and derivatives. shutting down. US health offi cials have warned need all of their contracted even more market share in this key derivatives The new push in options follows expansions he global credit machine “It’s pretty serious,” said citizens to prepare for an out- amount from Norilsk Nickel can business. elsewhere, including a build-out of its global fixed is grinding to a halt. The Shanawaz Bhimji, a fi xed-income break, while South Korea has also use tokens to sell spare volumes The market maker has assembled a seven- income, currencies and commodities business. T$2.6tn international bond strategist at ABN Amro Bank NV, emerged as a hot spot, with more to someone else. person team, led by former Deutsche Bank AG Linking up with institutional clients is a playbook market where the world’s biggest calling it a “very diffi cult” mo- than 1,000 reported cases there. Consumers can use tokens for Managing Director David Silber, to win order flow Citadel Securities followed in interest-rate swaps, companies raise money to fi nance ment for investments in credit The worsening crisis is already the Nordstar airline or ski passes from institutional investors. where it began trading for such customers in themselves, has come to a virtual markets. taking a toll on companies’ balance at the Rosa Khutor resort in Launched in January, the venture buys and 2014. In currencies, it’s been teaming up with big standstill around the world as the Honeywell International Inc, sheets, with drinks maker Diageo Sochi, and can transfer spare ski sells exchange-traded options tied to individual banks, unlike in rates and equities where Citadel coronavirus spreads fear through Virgin Money UK Plc and Trans- Plc set to book as much as a 325mn- days to other customers. US stocks and equity indexes on behalf of those Securities has battled them head on. company boardrooms. port for London are among the pound ($422mn) hit to organic net Companies supplying materi- customers. Silber leads the new options initiative, with In Europe, which had been en- European borrowers readying sales following signifi cant disrup- als or products to Norilsk Nickel Citadel Securities is a huge presence in this help from another Deutsche Bank alum, Jason joying the strongest ever start to deals before fi nancial markets tion in Greater China since the will also be able to use the industry. Exchange trading of US stock options is Roelke, who also joined Citadel Securities in the year – with €239bn ($260bn) started turning hostile. end of January. French food maker platform to access cash from anonymous, but the market-making firm says it September. Roelke is head of institutional equity of bonds sold in January alone – Borrowing costs in euros for Danone SA lowered its target for the company. accounts for about a quarter of all volume. And derivatives sales. Wednesday saw no deals for the investment-grade companies 2020 sales growth after slowing Atomyze will need approval that’s before this new institutional business has a The timing of the expansion looks auspicious. fi rst time in 2020. The US hasn’t have surged to 95 basis points, the bottled water sales in China. from Russia’s central bank if it chance to ramp up. Trading of US stock options recently nearly seen a transaction since Friday highest level reached this year, In the US, Mastercard Inc wants to expand the number “We are digging into every part of equity matched volume for the underlying shares, the while Asia, where the virus fi rst according to a Bloomberg Bar- shares tumbled as much as 7% of companies off ering services options execution and examining what we can highest ratio in about 14 years, Goldman Sachs emerged, has slowed to a trickle. clays index, while default swaps this week after the company and is restricted from issuing do more eff iciently to create a better experience Group Inc strategists including Vishal Vivek While such shutdowns are insuring the debt of high-grade cut its revenue forecast as the tokens denominated in any cur- for clients and improve market transparency,” wrote in a report this month. common during public holidays companies surged to the high- spreading virus curbs interna- rencies, Potanin said. Silber, head of institutional equity derivatives, “This is a significant increase from 2016 when such as Christmas, they are ex- est in four months. A closely- tional travel, while Apple Inc said It will use Russian lender said in an interview at the firm’s New York off ice. options volumes were only 30% of shares vol- tremely rare at other times of year. watched measure of risk in the demand for iPhones in China Sberbank PJSC to process indi- The company says it has over 1,200 institutional umes,” the strategists said. Investors are rattled by the po- junk-bond market also soared to tumbled 28% in January on the viduals’ money transactions. tential impact on company earn- a six-month high on Wednesday. previous month. Pickens renewable fund shuts just fi ve months after opening

Bloomberg when the lion’s share of new invest- er than produce, renewable energy. later. Despite his career in oil and gas, thanks to shale output in the Permian the acronym for registered investment New York ment is fl owing to the world’s big- RENW had its last day of trading at the Pickens was a vocal supporter of re- Basin. And years of overspending had advisers. “We had a good exchange,” gest managers that charge the lowest end of January. newable energy. His “Pickens Plan,” sent investors in the companies re- he said. However, the investor raised fees like BlackRock Inc and Vanguard “We were correct that people cared which he launched in 2008, lauded sponsible for the boom packing. concerns that the fund’s small size t was a moment that should have Group. That’s underscoring a wider about the topic,” Toby Loftin, founder any and all sources of energy as long While BOON climbed almost 8% in would require him to fi le additional been a win for environmentalists concern within the investing commu- of BP Capital Fund Advisors, said by as they were domestically produced. the second quarter of 2018, it was fl at paperwork if he took a sizeable posi- Iand sustainable-minded investors nity that a race to the bottom in fees is telephone. “This has a whole less to do Pickens died last year at the age of 91. in the third quarter and ended down tion. “That’s more cost.” And cost is no alike: A fossil fuel investment vehi- distorting even the most attractive of with renewable energy,” and more to do Loftin said he got the idea for a renew- almost 29% in the fourth. small matter. cle named for late oil tycoon T Boone opportunities. with whether smaller US asset manag- able-focused fund after receiving a cold Loftin saw an opportunity. Instead BP Capital was already charging a Pickens was transforming into a re- “I’ve seen big names get humbled in ers can launch new products and “ac- call from Morningstar Inc at the start of launching a new renewable ETF, he pretty penny for RENW, compared newables fund to take advantage of in- the ETF world,” said Bloomberg Intel- tually be successful,” he said. of 2017. The sales representative asked decided to simply convert the crude with the ESG products off ered by Van- terest in the energy transition. ligence analyst Eric Balchunas. “It is Pickens rose to fame as a corporate whether BP Capital would be interested fund. BP Capital announced last July guard and BlackRock. A Vanguard fund Just fi ve months after the fund was absolutely brutal.” raider in the 1970s and 1980s, using his in issuing something related to renewa- that it was making the switch. The new that tracks US companies screened for rebranded, it was liquidated after fail- BP Capital Fund Advisors, a spinoff Mesa Petroleum Co to attempt takeo- ble energy. Morningstar was in the proc- ETF would include companies that de- ESG criteria charges 12 basis points, or ing to attract investors. of Pickens’s shuttered hedge fund, is vers, including a failed bid for Gulf Oil ess of buying a 40% stake in Sustaina- rive at least 5% of their revenue from $1.20 for every $1,000 invested. Black- It may seem unusual that a product the latest victim. The Dallas-based that ended with Gulf Oil being sold to lytics, which provides ESG research and renewable energy, or at least 10% from Rock’s sustainable ETFs range any- focused on renewable energy was un- fi rm threw in the towel on its Pickens Standard Oil Co, in what was the larg- ratings. The thought was that the two “green transportation.” where from 10 basis points to 25 basis able to attract buyers at a time when Morningstar Renewable Energy Re- est merger in history at the time. But could join forces to off er a new type of Loftin started making calls a month points. BP Capital’s RENW charged 65 Wall Street is clamouring over sustain- sponse ETF, citing the fund’s prospects it was Pickens’s bets in the energy renewable product for investors. later, circling back to investors who basis points. able investing. ESG and values-based for growth. futures market after turning 75 that The renewable sector was heating had previously turned him down when The fate of RENW, which had about exchange-traded funds surged in 2019, The fund’s fees also were fi ve times earned him much of his wealth. up. BP Capital was in the process of he had sought their interest in the $3mn of assets under management with assets under management reach- higher than those charged by rival Loftin joined Pickens’s hedge fund setting up its BOON exchange-traded crude ETF. when it closed, may have been fore- ing $94bn globally, double the level in off erings from BlackRock and Van- in 2010 after years of working exter- fund, which was meant to off er inves- But one particular meeting signalled shadowed by a similarly priced ETF. In 2018, according to data compiled by guard. The ticker symbol of the Pick- nally as an energy research specialist. tors exposure to companies that ben- the mounting challenges BP Capital 2019, Exchange Traded Concepts shut Bloomberg Intelligence. ens Morningstar ETF was RENW and In 2013, he started BP Capital Fund efi ted from a rise in global crude prices. and its RENW fund faced. two socially responsible ETFs less than Even with the growth, smaller pro- it was billed as a way to give investors Advisors with Pickens’s support. Pick- The problem was that they didn’t “I remember going to a meeting in two years after they started trading. viders are fi nding it tough to compete exposure to companies that use, rath- ens shuttered the hedge fund fi ve years rise. Oil production was skyrocketing Dallas with this RIA,” Loftin said, using They, too, charged 65 basis points. Gulf Times 8 Saturday, February 29, 2020 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 24,895.73 -870.91 Apple Inc 265.68 -2.87 10,826,248 S&P 500 Index 2,880.59 -98.17 American Express Co 108.00 -4.26 591,464 Nasdaq Composite Index 8,364.06 -202.42 Boeing Co/The 272.56 -5.28 1,220,306 S&P/Tsx Composite Index 15,927.90 -789.61 Caterpillar Inc 120.70 -2.08 519,791 Mexico Bolsa Index 40,094.77 -1,512.65 Cisco Systems Inc 38.78 -3.15 6,541,584 Brazil Bovespa Stock Idx 100,514.10 -2,469.40 Chevron Corp 91.16 -3.16 1,495,777 Ftse 100 Index 6,511.50 -284.90 Walt Disney Co/The 114.47 -3.02 2,620,393 Cac 40 Index 5,271.47 -224.13 Dow Inc 38.43 -2.83 797,771 Dax Index 11,829.64 -537.82 Goldman Sachs Group Inc 197.25 -4.10 476,953 Ibex 35 Tr 8,663.70 -322.20 Home Depot Inc 215.10 -4.29 928,933 Nikkei 225 21,142.96 -805.27 Intl Business Machines Corp 127.24 -4.41 799,368 Japan Topix 1,510.87 -57.19 Intel Corp 54.62 -2.17 4,114,953 Hang Seng Index 26,129.93 -648.69 Johnson & Johnson 132.79 -4.55 1,406,974 All Ordinaries Indx 6,511.50 -225.90 Jpmorgan Chase & Co 115.51 -4.83 3,074,535 Nzx All Index 1,875.67 -30.20 Coca-Cola Co/The 52.09 -5.17 2,357,723 Bse Sensex 30 Index 38,297.29 -1,448.37 Mcdonald’s Corp 189.81 -5.57 950,943 Nse S&P Cnx Nifty Index 11,201.75 -431.55 3M Co 148.63 -1.02 1,214,384 Straits Times Index 3,011.08 -100.62 Merck & Co. Inc. 75.07 -3.86 2,037,978 Karachi All Share Index 26,289.38 -107.58 Microsoft Corp 157.16 -0.64 10,617,990 Jakarta Composite Index 5,452.70 -82.99 Nike Inc -Cl B 86.07 -2.80 903,724 Pfizer Inc 32.73 -4.02 4,756,608 Procter & Gamble Co/The 109.10 -3.88 1,409,890 Travelers Cos Inc/The 118.83 -4.23 207,715 TOKYO Unitedhealth Group Inc 250.81 -1.22 564,828 United Technologies Corp 127.50 -3.54 664,771 Company Name Lt Price % Chg Volume Visa Inc-Class A Shares 175.99 -2.23 1,756,085 Nidec Corp 12,780.00 -2.81 1,842,300 Verizon Communications Inc 52.75 -4.20 2,194,402 Isuzu Motors Ltd 1,016.00 -2.54 5,349,200 Walgreens Boots Alliance Inc 44.97 -2.75 1,052,562 Unicharm Corp 3,498.00 -6.52 3,219,700 Walmart Inc 105.88 -4.09 1,283,693 Nomura Holdings Inc 479.50 -5.09 37,267,800 Exxon Mobil Corp 48.95 -1.75 4,915,578 Daiichi Sankyo Co Ltd 6,590.00 -4.45 2,870,600 Subaru Corp 2,619.50 -3.68 5,222,600 Sumitomo Realty & Developmen 3,372.00 -5.92 3,166,500 Traders work in front of a board displaying the chart of Germany’s share index DAX at the Frankfurt Stock Exchange. The FTSE 100 Ntt Docomo Inc 2,927.50 -4.02 9,706,100 Sumitomo Metal Mining Co Ltd 2,685.50 -3.10 2,715,300 DAX 30 slumped 3.9% to 11,890.35 points yesterday over fears the coronavirus could wreak havoc on the world economy. Company Name Lt Price % Chg Volume Orix Corp 1,742.00 -3.28 9,298,400 Asahi Group Holdings Ltd 4,150.00 -3.51 2,546,800 Anglo American Plc 1,762.60 -4.77 4,322,856 Keyence Corp 34,410.00 -3.64 927,800 Associated British Foods Plc 2,232.00 -4.37 1,410,423 Mizuho Financial Group Inc 147.60 -2.57 221,029,500 Admiral Group Plc 2,097.00 -3.94 949,601 Sumitomo Mitsui Trust Holdin 3,700.00 -2.19 2,741,700 Ashtead Group Plc 2,362.00 -4.26 1,602,148 Japan Tobacco Inc 2,144.00 -2.21 11,519,400 Antofagasta Plc 748.80 -4.73 2,540,065 Sumitomo Electric Industries 1,290.50 -3.94 4,989,900 Auto Trader Group Plc 512.60 -2.18 4,628,779 Europe markets suff er Daiwa Securities Group Inc 459.20 -3.79 10,113,900 Aviva Plc 346.50 -4.99 14,044,784 Softbank Group Corp 5,013.00 -4.31 24,729,900 Astrazeneca Plc 6,777.00 -5.11 2,724,712 Panasonic Corp 1,030.50 -4.85 16,247,600 Bae Systems Plc 605.80 -4.12 8,993,424 Fujitsu Ltd 11,210.00 -5.48 1,945,000 Barclays Plc 148.38 -3.92 69,770,329 Central Japan Railway Co 17,780.00 -3.58 910,500 British American Tobacco Plc 3,031.50 -4.14 4,618,753 Nitori Holdings Co Ltd 14,965.00 -4.59 695,700 worst week since Barratt Developments Plc 750.60 -2.37 6,822,247 Ajinomoto Co Inc 1,812.00 -3.95 3,286,400 Bhp Group Plc 1,401.80 -5.91 9,547,975 Daikin Industries Ltd 14,725.00 -2.97 1,857,500 Berkeley Group Holdings/The 4,698.00 -3.13 525,897 Mitsui Fudosan Co Ltd 2,477.50 -6.05 7,311,600 British Land Co Plc 496.50 -1.80 6,700,235 Ono Pharmaceutical Co Ltd 2,210.00 -4.25 4,165,600 Bunzl Plc 1,876.00 -5.35 746,680 Toray Industries Inc 624.70 -4.07 12,386,100 Bp Plc 389.75 -5.89 53,160,721 Bridgestone Corp 3,606.00 -2.93 4,780,700 fi nancial crisis Burberry Group Plc 1,612.00 -3.79 1,842,128 Sony Corp 6,611.00 -3.87 11,636,800 Bt Group Plc 139.46 -0.03 32,134,428 Astellas Pharma Inc 1,699.00 -2.94 11,736,900 Coca-Cola Hbc Ag-Di 2,461.00 -5.56 746,816 pean debt crisis erupted in 2011. Africa, as the World Health Organisa- Hoya Corp 9,609.00 -2.25 2,168,200 AFP Carnival Plc 2,373.00 -1.00 1,424,696 “The panic mode is full on,” said tion warned against the “fatal mistake” Nippon Steel Corp 1,216.00 -3.95 8,243,100 London Centrica Plc 72.36 -5.41 23,900,659 Suzuki Motor Corp 4,337.00 -6.04 3,455,900 Ipek Ozkardeskaya, senior analyst at of complacency. Compass Group Plc 1,678.50 -5.36 4,509,310 Nippon Telegraph & Telephone 2,529.50 -5.81 10,216,200 Swissquote Bank. Meanwhile, the British pound fell Croda International Plc 4,498.00 -2.64 411,847 Jxtg Holdings Inc 434.00 -2.38 35,412,000 lobal stocks slumped again “The coronavirus outbreak has cer- sharply yesterday, losing nearly 1% Crh Plc 2,616.00 -2.93 2,548,824 Murata Manufacturing Co Ltd 5,721.00 -4.81 5,974,000 Dcc Plc 5,468.00 -2.25 868,295 yesterday to mark the larg- tainly hit businesses, and it might have against the euro and the dollar as wor- Kansai Electric Power Co Inc 1,164.50 -4.82 5,291,000 Diageo Plc 2,724.50 -3.39 5,493,877 est weekly drop since the 2008 a longer-than-expected negative im- ries about the fast-spreading corona- Denso Corp 4,220.00 -1.91 2,876,400 G Direct Line Insurance Group 303.30 -3.10 4,837,011 global fi nancial crisis over fears the pact on company earnings and global virus sent investors out of currencies Sompo Holdings Inc 4,016.00 -4.38 2,249,300 Evraz Plc 321.70 -4.54 4,186,871 deemed riskier. Daiwa House Industry Co Ltd 2,979.50 -3.23 3,240,800 coronavirus could wreak havoc on the growth,” she added. Experian Plc 2,552.00 -4.38 1,818,259 Dai-Ichi Life Holdings Inc 1,478.50 -3.24 8,160,600 world economy. Meanwhile, the Japanese yen con- As investors rushed for the safe-ha- Easyjet Plc 1,097.00 -1.17 6,367,955 Mazda Motor Corp 750.00 -4.82 7,462,100 Crude oil prices tumbled as well and tinue to benefi t from its status as a ha- ven Japanese yen, Swiss franc and US Ferguson Plc 6,700.00 -5.10 352,298 Komatsu Ltd 2,182.50 -1.40 12,938,900 dollar, sterling fell to its lowest against Fresnillo Plc 595.80 -13.05 2,134,324 analysts said that central banks, espe- ven investment in times of economic West Japan Railway Co 7,618.00 -3.78 1,131,900 Glencore Plc 188.32 -5.43 39,040,429 cially the US Federal Reserve, might uncertainty, making solid gains against the dollar since October. Other cur- Kao Corp 7,868.00 -2.09 2,625,300 Glaxosmithkline Plc 1,552.20 -4.76 10,155,878 have to shift into crisis-resolution the dollar. rencies closely linked to risk sentiment Mitsui & Co Ltd 1,783.50 -3.54 11,635,600 Gvc Holdings Plc 785.80 -3.32 2,073,996 mode with urgent interest rate cuts. Yields on 10-year US Treasuries also tumbled – the Australian dollar Daito Trust Construct Co Ltd 10,975.00 -5.22 673,900 Hikma Pharmaceuticals Plc 1,792.50 -6.15 527,052 Otsuka Holdings Co Ltd 4,080.00 -4.05 2,648,000 But James Bullard, head of the Saint were at an all-time low around 1.17%. fell 2%. Hargreaves Lansdown Plc 1,503.00 -3.59 1,378,615 Oriental Land Co Ltd 12,265.00 0.66 4,866,700 Louis Fed, warned that emergency Concern that global crude demand Analysts said that while there was Halma Plc 1,912.00 -5.44 1,033,477 Sekisui House Ltd 2,117.00 -3.62 4,399,400 rate cuts were “not the baseline at this will crash meanwhile sent oil prices no sterling-specifi c news yesterday, Hsbc Holdings Plc 516.90 -2.34 48,019,619 Secom Co Ltd 8,575.00 -3.47 1,311,400 Hiscox Ltd 1,211.00 -3.74 506,391 time” for the central bank’s policy- down again, by 3.1% for Brent crude in Britain’s fi nances had left it vulner- Tokio Marine Holdings Inc 5,801.00 -2.94 3,291,300 Intl Consolidated Airline-Di 469.30 -8.94 10,089,314 makers. London and by 4.6% for US benchmark able – its large current account defi cit Aeon Co Ltd 2,014.50 -2.94 6,067,900 Intercontinental Hotels Grou 4,255.50 -3.78 910,081 And “beyond helping to alleviate the WTI crude, though they too appeared means the country depends on over- Asahi Kasei Corp 900.70 -5.61 8,125,000 3I Group Plc 994.20 -4.82 1,584,131 current stock market collapse, there is to be staging a late rally, of sorts. seas investment. Kirin Holdings Co Ltd 2,075.00 -3.89 5,414,800 Imperial Brands Plc 1,546.80 -6.04 3,067,543 Marubeni Corp 716.80 -3.79 11,212,600 little any central bank could do to al- “Another day, another sell-off ,” r e - Investors are also fretting about Informa Plc 680.60 -1.36 4,172,327 Mitsubishi Ufj Financial Gro 531.90 -2.33 134,142,800 leviate the potential repercussions of marked analyst Stephen Brennock at Britain’s negotiations with the Eu- Intertek Group Plc 5,204.00 -3.06 440,644 Mitsubishi Chemical Holdings 726.30 -2.56 12,066,100 a global pandemic,” noted Joshua Ma- energy consultancy PVM Associates. ropean Union over a trade deal and Itv Plc 114.85 -3.49 11,665,650 Fanuc Corp 17,970.00 -3.93 1,811,500 Johnson Matthey Plc 2,454.00 -1.09 730,316 hony, senior market analyst at IG. “Risk assets took a signifi cant step whether a UK budget next month will Fast Retailing Co Ltd 53,440.00 -2.84 1,445,500 Kingfisher Plc 186.30 0.13 8,470,972 Frankfurt headed the losses in lower... as market players continued to include much more spending, which Ms&Ad Insurance Group Holdin 3,483.00 -2.33 2,345,600 Land Securities Group Plc 822.00 -4.82 2,519,192 Europe, shedding almost 3.9% to squirm with unease over the growing many investors say is necessary to Kubota Corp 1,523.00 -1.68 5,976,500 Legal & General Group Plc 256.60 -4.65 23,817,340 boost economic growth. Seven & I Holdings Co Ltd 3,696.00 -0.73 4,702,400 11,890.35 as the market closed. coronavirus crisis.” Lloyds Banking Group Plc 49.75 -1.20 340,076,304 Inpex Corp 932.90 -2.67 14,038,200 Leading European stock markets In addition to central banks, govern- “Sterling is acting as the wild card London Stock Exchange Group 7,460.00 -4.48 644,009 Resona Holdings Inc 409.20 -2.50 16,288,900 have lost more than 10% in just one ments also faced pressure to provide in a coronavirus-dominated market, Micro Focus International 720.70 0.10 1,242,138 Fujifilm Holdings Corp 5,277.00 -2.84 4,953,700 support. mostly reliant on investors’ mood Marks & Spencer Group Plc 155.50 -2.23 7,595,729 week, with London’s FTSE 100, which Yamato Holdings Co Ltd 1,702.00 -4.27 3,376,500 Mondi Plc 1,532.50 -5.37 2,397,165 fell by 3.4% to 6,565.80 points yester- French Economy and Finance Min- when it comes to fi scal stimulus ex- Chubu Electric Power Co Inc 1,407.50 -3.00 3,575,100 Melrose Industries Plc 207.10 -4.47 11,531,068 day, giving up 11.3% and Paris’s CAC ister Bruno Le Maire said the virus pectations ahead of the UK budget and Mitsubishi Estate Co Ltd 1,844.00 -5.51 10,804,900 Wm Morrison Supermarkets 168.60 -0.85 8,467,216 40 was down 3.4% to 5,309.90 points would be considered “a case of force UK-EU trade negotiations,” ING strat- Mitsubishi Heavy Industries 3,419.00 -2.95 3,017,100 National Grid Plc 973.00 -6.42 8,535,337 Sysmex Corp 6,919.00 -3.11 1,136,800 at close yesterday. majeure for companies,” meaning they egists said in a note to clients. Nmc Health Plc 938.40 0.00 - Shiseido Co Ltd 6,418.00 -2.05 4,401,100 But in New York, the Dow Jones in- would not be penalised if they failed to “Next week these two drivers will Next Plc 6,020.00 -3.15 369,551 Shionogi & Co Ltd 5,845.00 -3.94 2,038,800 dex was 1.1% lower in midday trades, meet deadlines on public contracts. remain predominant, as the calendar Ocado Group Plc 1,051.50 -2.68 2,107,368 Terumo Corp 3,478.00 -2.22 4,046,300 Paddy Power Betfair Plc 0.00 0.00 - while the broader S&P 500 was off by The virus has now proliferated off ers very little in terms of market- Tokyo Gas Co Ltd 2,183.00 -3.32 2,583,500 Prudential Plc 1,256.00 -5.39 9,175,678 0.7%, coming back from steeper drops worldwide, emerging in every conti- moving data releases.” Tokyo Electron Ltd 22,325.00 -5.52 2,423,000 Persimmon Plc 2,814.00 -2.39 1,745,050 at the open. nent except Antarctica, and prompting Sterling skidded to as low as $1.2753, East Japan Railway Co 8,319.00 -2.45 2,506,400 Pearson Plc 550.40 -3.34 3,297,314 On Thursday, the Dow suff ered its governments and businesses to curb a fresh 2020 low and its lowest level Itochu Corp 2,461.50 -3.13 11,554,900 Reckitt Benckiser Group Plc 5,665.00 -3.01 2,052,536 Ana Holdings Inc 2,907.50 0.29 5,365,000 biggest points loss on record, shed- travel and public gatherings. since October 2019, in late London Royal Bank Of Scotland Group 176.00 -4.03 23,203,986 Mitsubishi Electric Corp 1,371.00 -4.23 9,231,300 ding almost 1,200 points as its 4.4% The Geneva International Motor trading before recovering to $1.2775, Royal Dutch Shell Plc-A Shs 1,653.00 -4.54 12,373,616 Sumitomo Mitsui Financial Gr 3,484.00 -1.33 13,333,000 drop marked the steepest decline in Show was the latest major event to be down 0.8% on the day. Royal Dutch Shell Plc-B Shs 1,653.40 -4.56 14,172,604 Relx Plc 1,849.50 -4.96 4,583,918 two years. cancelled after Switzerland banned Versus the euro the pound dropped Rio Tinto Plc 3,539.50 -3.79 4,601,242 The markets in Shanghai, Sydney large gatherings. 0.9% to as low as 86.22 pence. That Rightmove Plc 609.80 -3.97 2,676,968 SENSEX and Tokyo all closed down 3% yester- The virus has killed more than 2,800 was the weakest level for sterling since Rolls-Royce Holdings Plc 628.00 4.56 11,816,415 day, while Jakarta shed more than 4%. people and infected more than 83,800 November and means the pound has Rsa Insurance Group Plc 516.40 -3.48 3,303,187 Company Name Lt Price % Chg Volume The VIX “fear” index – which since late December. erased all of its gains made in the run- Rentokil Initial Plc 482.10 -4.35 5,498,620 Adani Ports And Special Econ 342.20 -3.25 4,299,292 measures market volatility – is now Yesterday, Nigeria reported the fi rst up to the British general election in De- Sainsbury (J) Plc 193.65 -0.21 6,665,225 Asian Paints Ltd 1,797.95 -2.49 2,964,119 new coronavirus case in sub-Saharan cember. Schroders Plc 2,833.00 -4.81 240,593 at its highest level since the Euro- Axis Bank Ltd 697.30 -5.24 16,428,944 Sage Group Plc/The 680.80 -5.86 2,082,796 Bajaj Finance Ltd 4,465.85 -6.18 4,941,410 Segro Plc 814.80 -4.92 2,844,115 Bharti Airtel Ltd 523.50 -1.53 16,622,086 Smurfit Kappa Group Plc 2,538.00 -4.37 555,322 Bharti Infratel Ltd 214.45 -3.88 5,003,761 HONG KONG HONG KONG Standard Life Aberdeen Plc 272.00 -4.53 9,250,480 Bajaj Auto Ltd 2,890.00 -1.59 925,702 Ds Smith Plc 312.20 -6.92 7,469,461 Bajaj Finserv Ltd 9,050.75 -3.80 537,852 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Smiths Group Plc 1,512.00 -5.03 1,007,619 Bharat Petroleum Corp Ltd 426.35 -3.99 6,099,513 Scottish Mortgage Inv Tr Plc 549.00 -6.07 11,861,131 Ck Hutchison Holdings Ltd -1.38 Cipla Ltd 402.10 -4.53 4,200,936 67.85 7,898,920 Hong Kong & China Gas 15.00 -0.79 25,154,263 Smith & Nephew Plc 1,721.00 -5.85 2,176,208 Hang Lung Properties Ltd -4.17 Coal India Ltd 168.40 -3.27 14,694,382 17.02 11,528,609 Bank Of Communications Co-H 5.00 -2.53 40,615,194 Spirax-Sarco Engineering Plc 8,295.00 -4.71 141,894 Ck Infrastructure Holdings L -1.67 Dr. Reddy’s Laboratories 2,927.10 -4.56 1,659,956 53.10 2,438,813 China Petroleum & Chemical-H 4.02 -1.95 206,758,164 Sse Plc 1,512.50 -3.69 3,277,873 Hengan Intl Group Co Ltd -3.50 Eicher Motors Ltd 16,602.35 -2.64 326,455 57.85 6,080,617 Hong Kong Exchanges & Clear 255.80 -1.92 8,706,351 Standard Chartered Plc 563.60 -1.23 7,519,845 China Shenhua Energy Co-H -2.73 Gail India Ltd 104.40 -2.75 26,486,046 13.52 33,374,755 Bank Of China Ltd-H 3.08 -2.53 441,485,313 St James’s Place Plc 1,008.50 -3.49 1,713,092 Cspc Pharmaceutical Group Lt -2.63 Grasim Industries Ltd 687.20 -3.60 4,389,931 17.76 35,455,293 Hsbc Holdings Plc 53.15 -2.30 68,658,071 Severn Trent Plc 2,435.00 -4.92 1,092,961 Hang Seng Bank Ltd -0.55 Hcl Technologies Ltd 534.35 -6.75 7,894,806 162.50 3,964,650 Power Assets Holdings Ltd 55.50 -0.63 4,629,461 Tesco Plc 224.70 -2.73 21,943,531 China Resources Land Ltd 0.00 Housing Development Finance 2,175.75 -4.24 7,715,143 35.95 52,391,564 Mtr Corp 43.85 -0.45 5,406,939 Tui Ag-Di 598.20 -8.78 4,844,123 Ck Asset Holdings Ltd -2.31 Hdfc Bank Limited 1,177.65 -1.82 12,156,528 48.70 11,764,017 China Overseas Land & Invest 26.15 -2.24 24,117,240 Taylor Wimpey Plc 198.75 -3.19 15,753,305 Sino Biopharmaceutical -1.23 Hero Motocorp Ltd 2,051.75 -2.77 1,879,071 11.28 85,486,729 Tencent Holdings Ltd 386.00 -3.31 31,915,446 Unilever Plc 4,137.00 -4.26 3,747,472 Henderson Land Development -0.83 Hindalco Industries Ltd 155.90 -7.40 14,033,411 35.75 7,274,830 China Unicom Hong Kong Ltd 6.15 -2.69 51,217,685 United Utilities Group Plc 931.20 -4.63 2,619,672 Aia Group Ltd -1.60 Hindustan Petroleum Corp 197.55 -3.35 6,824,810 76.90 41,504,793 Link Reit 72.20 -2.50 11,019,154 Vodafone Group Plc 133.46 -5.39 77,073,542 Ind & Comm Bk Of China-H -2.38 Hindustan Unilever Ltd 2,174.75 -3.56 3,837,330 5.33 376,819,673 Sino Land Co 10.60 -1.12 10,945,324 John Wood Group Plc 363.10 -3.15 2,465,731 Want Want China Holdings Ltd -1.95 Icici Bank Ltd 497.25 -3.51 32,737,933 6.02 25,882,980 China Resources Power Holdin 9.27 -2.42 9,990,062 Wpp Plc 744.20 -2.28 4,492,880 Sun Hung Kai Properties -2.03 Indiabulls Housing Finance L 279.85 -11.64 37,439,449 110.80 6,223,528 Petrochina Co Ltd-H 3.02 -4.43 269,301,936 Whitbread Plc 3,850.00 -5.50 810,540 New World Development -0.79 Indusind Bank Ltd 1,104.05 -1.03 10,233,947 10.02 25,214,148 Cnooc Ltd 10.68 -4.47 138,638,039 Geely Automobile Holdings Lt -5.97 Infosys Ltd 731.70 -5.93 14,123,957 13.86 73,450,408 China Construction Bank-H 6.30 -2.17 602,262,893 Swire Pacific Ltd - Cl A -0.57 Indian Oil Corp Ltd 105.75 0.09 24,217,885 70.20 2,930,619 China Mobile Ltd 61.30 -3.31 34,183,063 Sands China Ltd -1.76 Itc Ltd 197.55 0.00 32,628,444 36.25 18,168,731 TOKYO Wharf Real Estate Investment -6.23 Jsw Steel Ltd 235.70 -6.51 10,723,581 35.35 21,391,338 Clp Holdings Ltd -0.73 Kotak Mahindra Bank Ltd 1,620.35 -3.71 3,743,312 81.80 5,467,979 Country Garden Holdings Co -3.55 Company Name Lt Price % Chg Volume Larsen & Toubro Ltd 1,187.55 -1.88 6,286,647 10.32 43,941,666 Aac Technologies Holdings In -6.59 Mahindra & Mahindra Ltd 457.05 -7.39 8,613,275 51.05 23,570,181 GCC INDICES Japan Airlines Co Ltd 2,678.00 -0.65 5,054,300 Shenzhou International Group -3.91 Maruti Suzuki India Ltd 6,283.10 -0.11 1,468,843 95.75 6,655,777 Indices Lt Price Change Recruit Holdings Co Ltd 3,758.00 -6.38 11,234,800 Ping An Insurance Group Co-H -1.92 Ntpc Ltd 106.55 -2.29 25,696,761 86.65 59,130,036 Softbank Corp 1,412.50 -2.62 23,191,700 China Mengniu Dairy Co 27.95 -1.76 12,220,937 Oil & Natural Gas Corp Ltd 91.95 -1.50 30,416,954 Doha Securities Market 9,490.14 -58.08 Kyocera Corp 6,796.00 -2.68 2,159,200 Sunny Optical Tech -5.24 Power Grid Corp Of India Ltd 181.50 -2.65 15,756,175 121.20 17,343,807 Nissan Motor Co Ltd 463.60 -1.42 29,116,800 Boc Hong Kong Holdings Ltd 26.75 -1.29 18,548,067 Reliance Industries Ltd 1,328.65 -4.16 17,973,847 Kuwait Stocks Exchange 4,769.33 -60.45 T&D Holdings Inc 1,065.00 -4.05 5,434,500 China Life Insurance Co-H -2.35 State Bank Of India 303.00 -5.89 59,705,346 18.26 58,031,374 Toyota Motor Corp 7,127.00 -3.48 10,619,700 Citic Ltd 8.65 -4.42 37,448,483 Sun Pharmaceutical Indus 372.90 -4.02 8,439,591 Oman Stock Market 4,130.91 -8.01 Kddi Corp 3,058.00 -6.88 13,502,900 Galaxy Entertainment Group L -2.00 Tata Steel Ltd 381.75 -7.52 24,532,833 51.45 23,989,709 Nitto Denko Corp 5,420.00 -1.28 2,062,200 Wh Group Ltd 7.92 -4.46 55,456,738 Hitachi Ltd 3,637.00 -5.83 6,609,100 Tata Consultancy Svcs Ltd 2,000.15 -5.00 4,298,076 Takeda Pharmaceutical Co Ltd 3,763.00 -4.44 9,231,900 Tech Mahindra Ltd 744.40 -8.00 5,959,364 Jfe Holdings Inc 1,002.00 -3.19 6,989,800 Titan Co Ltd 1,254.50 -1.83 2,728,105 Sumitomo Corp 1,544.50 -2.03 9,029,900 Tata Motors Ltd 128.95 -11.22 94,469,619 Canon Inc 2,733.50 -2.15 15,371,000 Upl Ltd 519.70 -5.65 2,974,535 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The Eisai Co Ltd 7,981.00 -3.70 1,639,700 Ultratech Cement Ltd 4,219.60 -2.36 524,557 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Nintendo Co Ltd 36,270.00 -5.03 2,299,600 Vedanta Ltd 114.00 -12.68 57,363,091 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Shin-Etsu Chemical Co Ltd 12,145.00 -6.07 3,602,900 Wipro Ltd 221.45 -4.38 5,637,309 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Mitsubishi Corp 2,690.00 -1.97 9,277,500 Yes Bank Ltd 34.60 -5.98 141,720,001 this data.” Smc Corp 43,070.00 -4.86 337,200 Zee Entertainment Enterprise 239.30 -2.07 9,692,261

Gulf Times 10 Saturday, February 29, 2020 BUSINESS

Nokia said to weigh strategic options as FCC to propose $200mn fi nes pressure mounts

Bloomberg for US cellphone carriers over New York

Nokia Oyj is exploring strategic options as fierce competition puts pressure on the Finnish network equipment maker’s earnings, people familiar with the matter said. consumer data disclosures The company is working with advisers to consider alterna- tives ranging from potential asset sales to mergers, the people said, asking not to be identified because the informa- Reuters The companies will be able to uses of consumers’ location data A trade group representing US sumers at every stage of the game tion is private. Other options include shifting investments and Washington challenge the fi nes before they be- by third-party fi rms. wireless carriers said in January — this issue only came to light af- making balance-sheet adjustments, one of them said. come fi nal and the precise amount Carriers have allowed the use that “upon hearing allegations of ter my offi ce and dedicated jour- Deliberations are ongoing, and there’s no certainty they will could change the sources said, of location-data for programs misuse of the data, carriers quick- nalists discovered how wireless lead to any transactions, the people said. A representative for he US Federal Communi- but is expected to total just over like roadside assistance, logistics, ly investigated, suspended access companies shared Americans’ Espoo, Finland-based Nokia declined to comment. cations Commission is set $200mn. medical emergency alert services, to the data and subsequently ter- locations willy nilly.” Nokia shares have lost roughly a third of their value over the Tto propose fining four ma- FCC Chairman Ajit Pai con- human traffi cking alerts and fraud minated those programs.” Wyden said the fi nes would be past year before news of its deliberations. jor US mobile phone companies fi rmed in January that “one or prevention. Lawmakers last year expressed a signifi cantly less than what the The firm cut its outlook and suspended its dividend in Octo- at least $200mn in total for im- more wireless carriers apparently FCC Commissioner Jessica outrage that aggregators were FCC could have imposed and said ber, saying it’s not expecting a major recovery in profit until properly disclosing some con- violated federal law.” The FCC and Rosenworcel said in January it was able to buy user data from wire- “comically inadequate fi nes” will 2021. That’s ratcheting up pressure on chief executive off icer sumer real-time location data, the carriers did not immediately a “shame” the FCC took so long less carriers and sell “location- not “stop phone companies from Rajeev Suri to act. two people briefed on the matter comment. to act on what she called reports based services to a wide variety of abusing Americans’ privacy the One possibility Nokia could also consider is combining with a said on Thursday. The FCC said in May 2018 it that “shady middlemen could sell companies” and others, includ- next time they can make a quick competitor like Ericsson AB or partnering in certain business The FCC is expected to an- was investigating reports that a your location within a few hun- ing bounty hunters. buck.” areas. Still, such a move would face significant hurdles includ- nounce the proposed fi nes on website flaw could have allowed dred meters based on your wire- Senator Ron Wyden, a Demo- T-Mobile, which it expected to ing political pressure to preserve jobs as well as antitrust AT&T Inc, Verizon Communica- the location of mobile phone less phone data.” She added, “It’s crat, said on Thursday that media face the largest fi ne, is working to scrutiny. A representative for Ericsson declined to comment. tions Inc, Sprint Corp and T-Mo- customers to be tracked. chilling to consider what a black reports of the fi nes suggested Pai close its merger with Sprint in the The limited number of direct rivals to Nokia would also re- bile US Inc today. That probe expanded into other market could do with this data.” “failed to protect American con- coming weeks. quire the company to consider interest from further afield — like technology companies or wireless operators — if it were to ever seek a full sale. The December announcement that Nokia chairman Risto Siilasmaa would step down stirred speculation about deeper changes at the company. The firm is in a fierce rivalry with Ericsson and China’s Huawei Technologies Co, as the three dominant players seek to benefit from phone carriers’ invest- ments in next-generation mobile networks. “Nokia’s return to sustained growth and profitability has been delayed by its struggle to transition to a cost-competitive 5G hardware design, impeding its ability to compete, in our view. The 5G spending cycle is ramping up as commercial launches gain momentum, putting Nokia at risk of losing early awards,” said John Butler and Boyoung Kim, telecom analysts, Bloomberg Intelligence. The US should be “actively considering” investments into Nokia or Ericsson to counter the threat posed by China’s dominance of emerging 5G technology, Attorney General William Barr said this month. Larry Kudlow, President Donald Trump’s top economic adviser, later said the US government isn’t in the business of buying companies. He has since announced plans by the White House to hold a conference with Huawei rivals to try to accelerate development of aff ordable competing products. Nokia warned this month that, excluding China, its address- able market is likely to be stagnant this year compared with 2019. As it struggles to catch up with competitors, Nokia’s acquisi- tion of French rival Alcatel-Lucent in 2016, which helped to broaden its off ering, may have slowed down development of new products as it contended with a complicated integration process.

Nokia is working with advisers to consider alternatives ranging from potential asset sales to mergers, sources said. Other options include shifting investments and AT&T employees walk out of corporate headquarters in San Antonio, Texas. The FCC is expected to announce the proposed fines on AT&T Inc, Verizon Communications Inc, Sprint making balance-sheet adjustments, one of them said. Corp and T-Mobile US today. Rejected by Wall Street, Ford’s CEO has support where it matters

Bloomberg in 2014, people familiar with his thinking said. a Feb. 7 interview. “We cannot wait years and managing the automotive here-and-now. a key role in securing a life-saving loan that Southfield, Michigan Mulally declined to comment. years.” While Hackett says he has absolutely Within months of taking on their roles, Farley sustained the company through the downturn Farley, 57, briefed investors on Wednesday on given Farley a mandate to accelerate, he won plaudits for leading Ford’s talks with that wiped out the rest of Detroit. how he intends to speed up Ford’s turnaround also defends the deliberate approach he and Volkswagen AG that lead to a tie-up last Hinrichs is seen as Mulally’s last acolyte in Days after another dismal earnings report, Ford and perk up the stock price, which tumbled to Bill Ford are taking and says it’s rooted in a summer to jointly develop the driverless and Ford’s upper management. Motor co-chief executive off icer Jim Hackett the lowest in over a decade on Monday. company still run by the founding family, which electric cars that Bill Ford and Hackett are so “Ford is now, with the departure of Joe Hinrichs, sent a blunt message during an internal town The hard-driving marketing mastermind — and takes a long-term view. excited about. Participants on all sides of that back to where it was when everything started hall: I’m not going anywhere. cousin of the late comedian Chris Farley — is “Others will say, well, why has it taken so deal, which also involved self-driving startup falling apart last time,” said Bryce Hoff man, If there were any doubts in the crowd about embracing the new role with his signature long? Or why are you contemplating this so Argo AI, praise Farley’s mastery of the materials author of “American Icon: Alan Mulally and the that statement, Hackett underscored it by intensity. Jim Farley is working late into the rigorously? It’s because we’re balancing the and his negotiating skills that helped keep the Fight to Save Ford Motor Company,” published discussing the early retirement of Joe Hinrichs, evenings and on weekends, reviewing all of needs of shareholders versus employees, talks on track. in 2012. “But now it’s in that position in a much a Ford president whom many had seen as a the company’s plans, say people familiar with suppliers, dealers,” Hackett said. “We’re not Fans of Farley say Hinrichs was meanwhile more competitive marketplace and in a much potential successor to the CEO. The comment his actions. Known as a quick study with an willing to lose the hearts and minds of our moving too slowly to fix what ails Ford. They more challenging business environment.” was a surprising display of force from a man encyclopedic memory for data and details, he people to have one quarter exceed earnings.” point to the botched launch of the new Explorer Hackett denies that there is any reconsideration who had just overseen another disappointing doesn’t suff er fools. Farley and Hinrichs were elevated less than sport utility vehicle last year that weakened of the Mulally era within Ford. quarter that deepened the sell-off in Ford stock “In the context of our industry and how it’s a year ago to be company presidents, with North American earnings for a company that “I’ve never heard anything but praise for Alan during his almost three-year tenure. The reason changing, we have to accelerate,” he said in Farley focused on the future and Hinrichs on isn’t consistently making money elsewhere in Mulally. He’s really highly regarded by me, by for such confidence: Hackett, 64, retains the the world. the board, by Bill,” Hackett said. “We spend zero backing of executive chairman Bill Ford. When Hinrichs dispatched a vice president last time and stress about that.” While Wall Street has never really warmed year to investigate problems at Ford’s Explorer Bill Ford hasn’t made any public appearances to him, Hackett has managed to nurture a plant in Chicago, some subordinates didn’t even early this year as Ford shares have dipped back close relationship with the 62-year-old great- show up for meetings to discuss the situation, below $8 for the first time January 2019. That grandson of founder Henry Ford through said a person familiar with the visit. For a high- month, he endorsed his embattled CEO at the frequent visits to each other’s off ices, where ranking executive to be disrespected like that Detroit auto show and appealed for patience they mind meld on a digitised future of was seen as evidence that Hinrichs didn’t have with Hackett and his $11bn turnaround plan. transportation in which big data drives how full control of the situation at the plant, the He declined an interview requested though a automakers create self-driving and electric cars. person said. Hinrichs declined to comment. company spokesman. The two are inseparable, say people familiar The Explorer launch failures undercut Hinrichs’s Now that Farley has taken over Hinrichs’s with their relationship, who asked not to be reputation as a manufacturing whiz. He rose to duties, he is moving quickly to light a fire under identified describing Ford’s inner workings. prominence under Mulally, a fellow engineer, his team. Farley is conducting meetings with “Harmony in businesses is a good story,” and won kudos for successfully overseeing the Ford’s entire top leadership, and more executive Hackett said with a chuckle during a phone complicated launch of the aluminium-bodied changes are expected. interview. “And it doesn’t burst out of lack of F-150 six years ago. In 2018, he played a pivotal Those changes won’t include Hackett, despite accountability at all. It’s more, frankly, of a role in getting those profitable pickups rolling some on Wall Street having openly questioned shared view of how much work we have in front off assembly lines again after a supplier’s how long his tenure will last. With the executive of us to transform the company to be really factory exploded and briefly disrupted truck chairman’s backing, Hackett will keep Farley viable for another 50-plus years.” production in 2018. waiting for an untold period to prove he’s the The elevation of Ford’s other president, Jim Mulally’s legacy has grown complicated within right pick to take over. Farley, to COO, and the departure of Hinrichs, Ford, with the company moving away from But Farley is clearly in ascent. Even the trait 53, has rocked a company struggling to find some of his rigorous practices that encouraged once viewed as his biggest weakness — his its way in an industry undergoing wrenching executives to admit mistakes and seek help hair-trigger temper — is now being recast as change. Hinrichs’s abrupt exit completes a fixing them, rather than let them fester. Mulally just the skill needed to eff ect change in Ford’s clean break from the era of Alan Mulally, who also bet heavily on small, fuel-eff icient cars, hidebound culture. was celebrated for keeping the carmaker out of Jim Hackett, president and CEO of Ford Motor, speaks during a Bloomberg Television interview which fell out of favour as gas prices abated. “He’s pretty intense,” David Whiston, an analyst bankruptcy during the Great Recession. Mulally in Hawthorne, California. Hackett has managed to nurture a close relationship with the Hackett is pulling Ford out of the sedan market. for Morningstar with the equivalent of a buy was close to Hinrichs and believed he should 62-year-old great-grandson of Ford founder Henry Ford through frequent visits to each other’s And the focus on Mulally as Ford’s saviour is rating on Ford shares, said of Farley. “I’m glad have succeeded him as CEO when he retired off ices. said to have irked Bill Ford, who also played Ford has him.” Gulf Times Saturday, February 29, 2020 11 BUSINESS

Amazon opens larger Go grocery store in Seattle

Bloomberg with several other brick-and-mortar go food, coffee and baked goods from in Amazon’s headquarters, and the Seattle experiments. The selection includes local purveyors. The store uses the original space sat empty — until now. non-food staples like paper towels and same meat suppliers as the Amazon The store’s opening is Amazon’s last laundry detergent but stops well short Fresh grocery delivery service, new take on grocery shopping this Amazon.com Inc is taking aim at of the array off ered at a traditional he said, and shares some organic year. In Los Angeles, the company the urban grocery market with a grocery store. Amazon’s Whole Foods produce and fish suppliers with Whole is preparing the first in a new line larger version of its cashierless Go markets carry tens of thousands of Foods. Unlike the high-end organic of grocery stores, with traditional convenience store. products. grocer, Go Grocery stocks items like checkout counters but distinct from The company opened the first Go Like the 25 existing Amazon Go Coca-Cola and Big League Chew the Whole Foods chain. Grocery on Tuesday, located in Seattle’s convenience stores located in Seattle, bubble gum. Amazon is also weighing other Go Capitol Hill neighbourhood, not far Chicago, San Francisco and New York, Amazon leased the retail space at 610 formats and potentially licensing from the online retailer’s headquarters. Go Grocery uses cameras and sensors E Pike Street in Seattle several years the technology to other companies, The store is about five times the size of to track people and note what they ago with the intention of using it for the Bloomberg reported last year. a typical Amazon Go — meaning it can took off the shelf. Shoppers are charged first Go store. Given a broad mandate Blueprints filed in Washington, DC, accommodate shopping carts — and when they exit. But unlike the early to shake up physical retail, the Go team suggest a Go Grocery is coming to the carries baked goods, meat, produce stores, Go Grocery uses newer versions originally planned to build a checkout- nation’s capital, too. and household items. of the system capable of identifying free supermarket, complete with a Janes didn’t comment on plans for Amazon is betting a frictionless produce without wrappers for each butcher, cheesemonger and coff ee bar. future stores but said the new Go checkout experience will help it grab a apple, cabbage or pineapple. That Chief executive off icer Jeff Bezos Grocery will target apartment dwellers bigger share of the $800bn US grocery makes stocking easier and lowers costs toured a prototype store in late 2015 rather than the off ice workers the market, now dominated by Walmart in an industry with notoriously tight and said it could confuse customers. existing Go stores mostly serve. Inc. margins. Instead, he asked the team to focus “This is our first one,” Janes said. “I Pedestrians walk by Amazon.com’s new Amazon Go grocery store, located The Go Grocery stocks about 5,000 “We can pretty much handle on refining the people-tracking think we’re going to learn and see adjacent to the Amazon.com headquarters in Seattle. Amazon is betting items, compared with 500 to 700 in a everything” stocked by a regular technology and checkout experience. where they’re going to work… high- a frictionless checkout experience will help it grab a bigger share of the typical Go store, said Cameron Janes, grocer, Janes said of the latest Go opened to the public three density residential areas is where we’re $800bn US grocery market, now dominated by Walmart. who oversees the Go project along technology. He showed off grab-and- years later as a convenience store starting.”

ABN Amro raided by German police over Cum-Ex VW strikes ‘dieselgate’ Bloomberg Amsterdam

German law enforcement off icials de- scended upon ABN Amro NV’s off ices in Frankfurt for a second time in three months to probe the bank’s involve- compensation deal with ment in a tax scandal that’s ensnaring a rising number of companies. Police cars were parked in a line out- side the off ices of the Dutch bank in Frankfurt’s financial centre and several off icers were seen inside conducting searches. Cologne prosecutors, who are responsible for the investiga- German consumers tion, confirmed that the police visit is related to the Cum-Ex tax probe but AFP United States. While American diesel declined to provide further details. Frankfurt buyers enjoyed generous buy-back ABN Amro is part of a long list of com- and compensation schemes, German panies whose off ices have been raided drivers had so far gone uncompen- over the scandal including BlackRock n important chapter in sated for the impact of the scandal, Inc, Commerzbank AG, Deutsche Bank Volkswagen’s years-long which has since spread to other car- AG, Deutsche Boerse AG, M M War- A“dieselgate” emissions cheat- makers. burg and the law firm Freshfields. The ing saga was set to close later yester- And beyond compensation, VW tax probe focuses on a strategy known day, as the German car giant agreed appears to have fared comparatively as Cum-Ex which has implicated doz- an €830mn compensation deal with well with respect to German fi nes. ens of banks and financiers. domestic consumer groups. The Wolfsburg-based group and The lender’s Frankfurt unit was searched “We and the Federation of German subsidiaries Audi and Porsche paid a by about 25 German law enforcement Consumer Organisations (VZBV) have total of €2.3bn in fi nes in the group’s off icials in November as part of a wider achieved a fair and verifi able settle- home country. raid. In total, approximately 100 German ment solution,” VW board member In addition to actual owners of off icers searched more than a dozen Hiltrud Werner said. VW cars manipulated in “dieselgate,” private homes and off ices in Germany The deal fends off a first-of-its- investors are also pursuing VW for along with a home in the Netherlands, kind collective lawsuit brought by billions, hoping to recoup fi nancial prosecutors said at the time. 400,000 diesel car drivers. losses they suff ered when the group’s The raid is related to Cum-Ex and It was one of the biggest legal hang- shares plunged after the scandal ABN Amro is fully cooperating with overs from VW’s 2015 admission to broke. authorities, ABN Amro spokesman fi tting 11mn vehicles with software And dieselgate-related investiga- Jarco de Swart said of Thursday’s raid to make the engines appear less pol- tions and court cases against individ- in Frankfurt. luting in regulatory tests than in real uals, including present VW boss Her- Banks involved in off ering the contro- driving conditions. bert Diess and former chief executives versial Cum-Ex strategy, which ran until Under the terms of yesterday’s deal, Martin Winterkorn and Matthias Mu- 2011, helped investors exploit a loophole VW will pay out a total “estimated at eller, remain open. on dividend payments, allowing multi- up to €830mn,” ($916.3mn) the VZBV Porsche confi rmed media reports ple parties to claim the same tax refund, said in a statement. yesterday that prosecutors had last according to authorities. Lawmakers say Car owners will be compensated week raided the offi ces and homes of the deals eventually cost the German with between €1,350 and €6,257, de- Under the terms of yesterday’s deal, VW will pay out a total “estimated at up to €830mn,” ($916.3mn) the Federation of its engineers over the VW subsidiary’s government €10bn in lost revenue. pending on the age and model of their German Consumer Organisations said in a statement yesterday. role in dieselgate. The bank said earlier this month that vehicle. While the parent group has long it may face “financial consequences” The total volume of the settle- fered to pay out to drivers independ- In May, one individual’s case will be Some lawyers urged car owners to since returned to profi tability, it is in- as a result of the ongoing probe and ment and the per-car amounts match ently of a deal. heard at Germany’s top administra- reject the deal. vesting massively in electric mobility that it “frequently receives information those hammered out between VW and Instead, the agreement means tive court, a ruling which could have VW “knows that aff ected custom- and automated driving in an attempt requests from German authorities in re- VZBV in talks that ended in acrimony “customers don’t have to blindly trust infl uenced the outcome of the settle- ers could in fact secure much larger to catch up with foreign competitors lation to other (criminal) investigations.” and a dispute over legal costs earlier the company they have already been ment talks — making a swift settle- sums” in individual cases, said Claus like Tesla. It’s not the only legal headache for this month. defrauded by once,” VZBV chief Klaus ment “important for Volkswagen,” the Goldenstein, whose law fi rm repre- In the coming years, VW, its sub- ABN Amro. In September, it disclosed Now VW has agreed to pay up to Mueller told reporters in Berlin. VZBV said. sents 17,800 plaintiff s. sidiaries and other German carmakers a criminal probe by Dutch prosecu- €190 per plaintiff for legal advice, Aside from the 400,000 diesel Plaintiff s whose case was included So far the fallout from diesel plan a slew of electric models to polish tors over alleged failures to check while independent auditors will check owners in the VZBV’s grouped pro- in the mass suit have the choice either cheating has cost VW more than their green credentials and avoid fall- on clients and report suspicious up on the payout process. ceeding, around 70,000 individuals to accept the settlement by April, or to €30bn worldwide in legal costs, fi nes ing foul of harsh EU fi nes for excessive transactions. After talks broke down, VW had of- have open claims against VW. fi le an individual suit by October. and compensation, most of it in the greenhouse emissions. Uber drivers, pizza delivery workers get lift from EU’s Vestager

Bloomberg she said. Companies like Uber have transformed be given more benefits by platforms and will self-employed” and reliant on one powerful Brussels how many people travel in cities and order food. continue to do so,” a spokesman for Deliveroo employer. Amsterdam-based Takeaway.com is merging said in an emailed statement. A spokesman for The inability to bargain for wages had a chilling with JustEat Plc to create a $10bn-plus food Uber declined to comment. eff ect, said Ivana Bacik, an Irish senator who Uber Technologies Inc drivers and takeout delivery giant, and Deliveroohas attracted In the UK, the Independent Workers’ Union eventually pushed Ireland to change the law delivery workers have a new champion in the investors such as Amazon.com Inc to garner a of Great Britain has challenged companies to allow some types of freelance workers to European Union’s antitrust chief, who wants to $4bn valuation. such as Uber on whether drivers should be bargain as a group for better pay. “It became help them fight for better pay and conditions. While some companies, such as Takeaway.com, entitled to overtime and holidays. Some riders a race to the bottom. The rates were dropped In an interview with Bloomberg, Margrethe have increased the rights they off er couriers and in the Netherlands are working 50-60 hours and people found their incomes aff ected very Vestager says she’s looking at ways to help drivers, tension remains. In 2018, UberEats riders a week and some are making less than the severely,” she said of the antitrust ruling. “people who work in a weak negotiating in the UK went on strike after a cut in delivery minimum wage of just under €10 ($10.90) an Vestager, who previously served as Denmark’s position” amid concerns about the plight of fees, but there is little riders or drivers can do hour, den Ouden said in a phone interview. economy minister, is clearly sympathetic to workers in the so-called gig economy. to protest against wages or working conditions. Deliveroo riders went on strike in the country labor rights, saying she comes “from a country A key question is whether the EU can “give sort They can’t argue with the software that spits out last August after the company ended some which has had built a success on a model” of European level guidance as to how to allow the orders. bonuses “but in the end, nothing really based on the right to unionise. Regulators are people to organise” without it being seen “as And while the couriers might be viewed as changed,” he said. looking at exemptions from competition law a cartel,” she said, referring to rules that curb freelancers or second-jobbers, increasingly they Working out the impact for online platforms “to make sure that people who are not really price-fixing between businesses. are low-income earners who rely on one website such as delivery apps is diff icult, given the independent” or self-employed “actually can Margrethe Vestager reacts during an interview for pay that varies wildly. Unlike most European variable nature of the jobs involved. But in 2016 unionise and be a much stronger force in in Brussels, on Feb. 25. workers, they often have limited or no insurance Takeaway.com launched Scoober — a restaurant negotiations.” Europe’s tough cartel rules have squeezed for accidents on the job. delivery service. By the end of 2019, Scoober Vestager has previously flagged the rights billions of euros in fines out of companies that “If you look at Deliveroo and UberEats, the used around 9,000 couriers that delivered 5.4% of workers on tech platforms as an area that collude to increase prices. The same rules have app decides what they do when they work of Takeaway.com’s orders. deserves scrutiny. However, the European also been used to prevent freelance workers and how much they earn. So there is no way of Even though Scoober is a small cut of Takeaway. Commission is set to move slowly, suggesting from teaming up to collectively lobby for negotiating with those platforms,” said Joris den com’s total deliveries, it is an expensive business Vestager: Concerned. ways to improve labour conditions for platform better wages from powerful employers such as Ouden, a labour organiser for the Dutch trade to run, with the company often hiring couriers workers next year, according to a strategy internet platforms. union FNV working with food delivery riders. via employment agencies. Over 2019, Scoober union pact that set a minimum rate of pay for document published in February. Vestager, who has become the bloc’s tech chief “The amount of money you make depends on expenses accounted for 73.9mn euros of voiceover work after the country’s antitrust There are limits to who Vestager is looking out in addition to her role as competition watchdog, how many orders you can do so people are Takeaway.com’s cost of sales, representing 67% regulator declared their agreement illegal. for. “We would not want dentists and lawyers” plans to change that. “We can make sure that buying electric bikes to be faster and jumping of the total cost of sales in that period, or about Dutch musicians fought a similar stance taken and professions in a more powerful position people can unionise” because “if you’re just seen lights.” 8,000 euros per courier. by Dutch authorities — and won in 2014 after an be able to gain the same advantage as more as another independent self-employed” person, “Deliveroo has long campaigned for a change Cartel rules are part of the problem. In 2004, EU court backed their argument that wage pacts vulnerable workers who depend on an internet “it’s very, very diff icult to make that happen,” to the law to enable self-employed riders to freelance Irish actors were forced to halt a should be allowed for workers who are “falsely website for their livelihoods, she added. Saturday, February 29, 2020 GULF TIMES BUSINESS Europe airlines chart path through coronavirus crisis

AFP which is now hitting Italy the hardest IAG added it would trim its Italy flights flights to northern Italy for the coming coronavirus and its wider than industry is booming according to London in Europe. due next month, warning also that its two weeks.” originally estimated impact on the global leader Air Charter Service, Britain’s low-cost carrier EasyJet earnings outlook had been “adversely In Paris, an Air France spokesperson global aviation market”. Hungarian which operates some 23,000 flights yesterday announced it would axe aff ected”. International Airlines Group, told AFP that it would trim flights this no-frills airline Wizz Air added it would per year. European airlines are reducing flights 500 flights to Italy due in March, which owns also Ireland’s Aer Lingus weekend to Bologna, Milan and Venice. reduce its flights to Italy from Warsaw Britain-based ACS said this month it to Italy due to coronavirus as part alongside plans for freezes on hiring and Spain’s Iberia, added: “Capacity And the recent dizzying slump in oil and other Polish cities. has been “inundated” with requests of drastic cost-cutting in an industry and pay. on Italian routes for March has been prices is not expected to off set the German carrier Lufthansa this week for charter flights in the face of sliding rocked by fallout from the deadly Other airlines implementing some Italy significantly reduced through a impact for the aviation sector, despite announced a hiring freeze in a new aircraft capacity and travel turmoil. outbreak. route cutbacks include Air France, British combination of cancellations and slashing the cost of kerosene or jet fuel cost-cutting drive to cushion the “Since the outbreak our off ices around Big global carriers had already Airways owner IAG, Belgium’s Brussels change of aircraft gauge and further — which is refined from crude. economic impact — but it has not yet the world have been arranging flights cancelled flights to China — including Airlines and Hungary’s Wizz Air. capacity reductions will be activated “The impact on KLM’s revenues will be removed any Italy flights. on local charter aircraft as the world Air Canada, Air France-KLM, American “Following the increased incidence of over the coming days. very significant and will only partly be IAG chief executive Willie Walsh deals with the travel disruption and Airlines, British Airways, Delta, Finnair, COVID-19 cases in northern Italy, we have “We also expect to make some mitigated by lower costs and a lower urged caution over the sector-wide overall cut to capacity to the region,” Lufthansa, United Airlines and Virgin seen a significant softening of demand capacity reductions across our wider fuel price,” wrote KLM chief financial disruption. said ACS Commercial Director Justin Atlantic. and load factors into and out of our shorthaul network.” off icer Erik Swelheim in a staff memo “I wouldn’t say it’s unprecedented,” he Lancaster. But worldwide panic intensified this northern Italian bases,” EasyJet said. Brussels Airlines said it had hinting also at Italy cutbacks. told reporters yesterday. “We have flown everything from week over the rapidly-spreading “We are also seeing some slower experienced a “negative booking Elsewhere, Finnair yesterday warned “We have seen other challenges for four passengers on a private jet, to coronavirus or COVID-19, which has demand across our other European trend”, with flights to northern Italy the over its first-quarter profits and sales the industry,” said Walsh, adding the hundreds on larger aircraft, to 100 killed more than 2,800 people and markets. As a result we will be making worst aff ected. owing to the outbreak. virus outbreak is a “rapidly changing tonnes of surgical masks — it has been infected more than 83,000 worldwide decisions to cancel some flights, “As a result, Brussels Airlines will The carrier blamed “the fast- situation”. Meanwhile, in stark contrast all systems go since the epidemic was — the vast majority in China — and particularly those into and out of Italy.” reduce by 30% the frequency of its developing situation with the to commercial airlines, the charter first reported.”

Opec ‘leaning towards’ larger US consumer spending slows oil cuts as virus hits prices in January; income surges Reuters London Consumer spending increases 0.2% in January; personal Several key Opec members are leaning income rises 0.6%; savings at towards a bigger than previously expected oil $1.33tn; core PCE price index output cut, four sources with knowledge of gains 0.1%; up 1.6% the talks said, as oil prices fell to $50 per barrel year-on-year; goods trade on fears the coronavirus outbreak will hit oil deficit falls 4.6% to $65.5bn in demand badly. January Some members are considering agreeing an output cut of 1mn barrels per day (bpd) for the Reuters second quarter of 2020, more than an initially Washington proposed cut of 600,000 bpd, the sources said. The Financial Times newspaper was first to S consumer spending rose report the deeper cut idea. less than expected in Janu- The virus has caused almost 2,800 deaths Uary, a loss of momentum in China and has spread to dozens of other that could be exacerbated by the countries. rapidly spreading coronavirus, Oil has slid by almost 25% this year on lower which has triggered a sharp stock demand and slower expected economic market sell-off and revived fears of growth, alarming Opec members. a recession. The Organisation of the Petroleum Other data yesterday showed Exporting Countries and its allies including the goods trade defi cit contracted Russia, a grouping known as Opec+, have sharply in January, with both im- already been curbing oil output by 1.7mn ports and exports declining. bpd under a deal that runs to the end of While the narrowing goods trade March. defi cit could be a boost to the calcu- They are scheduled to meet on March 5-6 in lation of gross domestic product, a Vienna to decide further policy. lot depends on how the coronavirus In an initial response to counter the impact unfolds in the United States. of the virus on the oil market, an Opec+ The Commerce Department said committee this month recommended the consumer spending, which accounts group deepen its output cuts by 600,000 for more than two-thirds of US eco- bpd, a figure now seen as not enough by some nomic activity, increased 0.2% last in the group. month as unseasonably mild weather Customers shop at a J C Penney Co store at the Gateway Shopping Centre in the Brooklyn borough of New York. The Commerce Department said One source familiar with the talks said the reduced demand for heating and un- consumer spending, which accounts for more than two-thirds of US economic activity, increased 0.2% last month as unseasonably mild weather kingdom now supported an oil output cut of dercut sales at clothing stores. reduced demand for heating and undercut sales at clothing stores. 1mn bpd. Data for December was revised Two other Opec sources said the need for higher to show consumer spending The coronavirus outbreak could the drop of 2019’s low readings Thursday that consumer spending month and exports dropped 1.0%. additional action was clearer than when the rising 0.4%, instead of the previ- challenge the Fed’s desire to keep from the calculation. The PCE price increased at a 1.7% annualised rate The department also reported re- Opec+ committee recommendation was ously reported 0.3% increase. monetary policy on hold at least index advanced 1.5% year-on-year in the fourth quarter, stepping back tail inventories were unchanged in made. Economists polled by Reuters had through 2020. in December. from the July-September quarter’s January after edging down 0.1% in “The situation has deteriorated,” said an forecast consumer spending gain- US stock index futures were trad- Excluding the volatile food and brisk 3.2% pace. the prior month. industry source who has discussed the ing 0.3% in January. ing lower yesterday. energy components, the PCE price The economy grew at a 2.1% Retail inventories, excluding mo- issue with some producers. “There is a lot of Wall Street’s main indexes The dollar was little changed index ticked up 0.1% in January rate in the fourth quarter, match- tor vehicles and parts, the compo- concern.” slipped into correction territory against a basket of currencies. US after rising 0.2% in December. ing the third quarter’s pace. The nent that goes into the calculation The Opec+ panel that recommended the on Thursday, with the yield on the Treasury prices were higher. That lifted the annual increase in coronavirus epidemic prompted of GDP, increased 0.3% last month 600,000 bpd cut, called the Joint Technical benchmark 10-year Treasury note With consumer spending tepid, the so-called core PCE price index Goldman Sachs early this week to after gaining 0.1% in December. Committee, is scheduled to convene again plumbing record lows. infl ation remained benign. to 1.6% in January from 1.5% in cut its first-quarter gross domes- Inventories at wholesalers fell on March 3, two sources said, to revise the Financial markets view the coro- Consumer prices as measured by December. tic product growth estimate by 0.2% in January. That followed a recommendation in the light of more recent navirus epidemic as the catalyst the personal consumption expen- The core PCE index is the Fed’s two-tenths of a percentage point 0.3% decline in December. oil market data. that could interrupt the longest ditures (PCE) price index edged up preferred infl ation measure. to a 1.2% rate. Despite last month’s tepid gain in Russia has yet to announce its final position economic expansion on record, now 0.1% in January. It missed the central bank’s 2% Growth estimates for the Jan- spending, consumer fundamentals on the matter. in its 11t year. The PCE price index was held target every month in 2019. uary-March quarter were already remain healthy. Personal income Moscow has a history of only agreeing to The coronavirus has killed more back by a 0.7% drop in the cost of When adjusted for infl ation, con- on the low side because of Boe- jumped 0.6% in January, the most Opec+ actions at the last minute, after initial than 2,000 people and infected at energy goods and services, off set- sumer spending nudged up 0.1% ing’s suspension of production of since February 2019, after gaining reluctance. least 80,000 people, most of them ting a 0.3% gain in food prices. in January after rising by the same its troubled 737 MAX plane starting 0.1% in December. Russian Energy Minister Alexander Novak said in China. The PCE price index increased margin in the prior month. last month. Income was boosted by the an- on Thursday that Russia wanted to continue Money markets have increased 0.3% in December. That suggests consumer spend- In second report yesterday, the nual cost of living adjustment for co-operation within Opec and non-Opec their bets on the prospect of more In the 12 months through Janu- ing got off to a slow start in the rstfi Commerce Department said the social security recipients and other frameworks, as well as bilaterally. Federal Reserve interest rate cuts. ary, the PCE price index acceler- quarter after cooling considerably goods trade defi cit contracted 4.6% government welfare programmes. A source in a Russian oil company said it made The US central bank cut rates ated 1.7%. That was the biggest gain in the fi nal three months of 2019. to $65.5bn in January. Wages rose 0.5% in January after sense to deepen the cuts. three times last year. since December 2018 and refl ected The government reported on Goods imports tumbled 2.2% last gaining 0.1% in the prior month. Ex-Barclays executives cleared over financial crisis fraud case

Bloomberg hung over the bank for more than a East investment banking head the funds that were invested right settlement agreement in a bribery been signed off by Barclays’s top London decade. Barclays still faces a £1.6bn Jenkins, ex-wealth boss Kalaris and back into the lender, which traces its case involving Airbus SE. lawyers, who were conspicuously civil suit, an employment case filed by Boath, who ran the bank’s European roots to 1690. Former Barclays chief The Barclays trial was the last chance absent during the trials. The calls, one of the defendants and scrutiny Financial Institutions group. financial off icer Chris Lucas, a co- authorities had to hold senior bankers the defendants’ lawyers said, Three former Barclays Plc executives from the financial regulator in In 2017, the Financial Conduct conspirator according to the SFO, was accountable for events during the were evidence that the men were were cleared of fraud charges by a connection with the saga. Authority dropped an investigation too ill to stand trial. financial crisis and carried a maximum conscientiously considering their London jury, ending a long-running The charges related to Barclays’s into Boath at the same time as the SFO But over the past 21 months the case prison sentence of 10 years. Barclays options. saga stemming from the bank’s fight desperate attempts to avoid brought the charges against him and slowly unravelled. First, Judge Robert covered the defendants’ legal fees and Jenkins and Kalaris both testified, to avoid nationalisation during the nationalisation, a fate imposed on his former colleagues. Jay dismissed charges against the their acquittal means they won’t have calmly resisting the prosecution’s financial crisis a decade ago. two competitors as the financial “I’m delighted and relieved with this bank, after its lawyers argued that to repay them. cross-examination and laying out a Roger Jenkins, Tom Kalaris and crisis tore into balance sheets in verdict having been cleared by the a corporate entity can only be held But they had to find a way of making version where Barclays easily secured Richard Boath were cleared of 2008. Faced with narrowing capital FCA in July 2017,” Boath said in a responsible if its entire board is part of the extra payments and settled on a the kind of business that would justify charges yesterday that they reserves, executives turned to the statement. “The SFO case was an a conspiracy. deal in which Barclays would pay for paying the fees. Boath didn’t testify. fraudulently hid £322mn ($415mn) Middle East for a £4bn investment invention and should never have been Next, Jay dismissed the case against strategic advice and introductions The end of the trial gives a green paid to a Middle Eastern country — part of more than £11bn in cash brought.” the four men, saying the SFO had in the Middle East. The SFO argued light, however, to civil lawsuits against to secure a £4bn investment in the injections that year. The bank The SFO rejected the criticism. failed to apply the law correctly, that the advisory arrangement was a Barclays that have been on hold for bank. Appellate courts had already avoided a UK government bailout, “Our prosecution decisions are and there was insuff icient evidence sham, a mechanism to hide the extra years pending the resolution of the thrown out similar charges against but the deal has been a headache always based on the evidence that is against Varley. The Court of Appeal fees. criminal charges. Barclays and former chief executive ever since. available, and we are determined to confirmed Varley’s acquittal, but In the second trial, the prosecution Boath is suing the bank, claiming off icer John Varley. The investor had demanded the bring perpetrators of serious financial reinstated the charges against the didn’t call a single witness and he was fired after Barclays received The jury deliberated for little more fees as a form of discount for its crime to justice,” it said in a statement. other men, paving the way for the relied almost entirely on e-mails and a copy of an interview he gave the than a full day after the five-month investment and agreed to be paid via “Wherever our evidential and public second trial to start in October. phone calls between the defendants SFO. He was the only defendant to trial and eight years of investigations advisory agreements. Prosecutors at interest tests are met, we will always The jury’s quick decision to dismiss and other Barclays employees. The speak with prosecutors. The other and hearings. The men, all in their 60s, the UK Serious Fraud Off ice claimed endeavour to bring this before a the charges is a stunning setback conversations all included Boath, three gave prepared statements and shook hands and Boath waved at the the agreements were fake and the court.” for SFO. Since becoming director 18 because his desk was on the Barclays declined to answer questions. jury, saying “thank you” as they left executives concealed the payments The other defendants declined to months ago, Lisa Osofsky has tried trading floor, where regulations A bigger claim is the civil lawsuit from the court. from other investors. All three immediately comment on the verdict. to draw a line under long-running dictate that all phone calls are PCP Capital Partners, the investment The outcome follows months of defendants denied the charges. Initially, Varley and the bank itself investigations wherever possible. She recorded. vehicle founded by Amanda Staveley. delays, appeals and a previous trial, The London jury delivered the verdict were also defendants, with Barclays has bolstered cooperation with the Attorneys for the executives said PCP oversaw a £3.5bn investment into and largely ends a scandal that has on allegations against former Middle accused of illegally lending some of US and secured Britain’s largest-ever that the plan was genuine and had Barclays in October 2008.