ENERGY PLAN | Page 14 Pakistan off ers $100bn opportunities

Wednesday, February 26, 2020 Rajab 2, 1441 AH KEY ECONOMIC PILLAR: Page 16 Islamic fi nance in GULF TIMES Qatar is witnessing ‘unprecedented’ BUSINESS growth: Al-Kuwari

QIC to enhance its focus on lower volatility, higher frequency risks

By Peter Alagos The members of the board of directors for the Business Reporter period 2020-2022 were also elected during the meeting. The following members in the category of atar Insurance Company (QIC) will non-independent member won by acclama- continue to execute on its strategy of tion: Sheikh Khalid bin Mohamed bin Ali al- Qenhancing its focus on lower volatility Thani, Sheikh Saoud bin Khalid bin Hamad al- and higher frequency risks, which are expected Thani, Hussein Ibrahim Alfardan (representing to provide it with a more stable and predictable Alfardan Investment Company) and Sheikh return on capital, according to QIC’s board of Faisal bin Thani bin Faisal al-Thani (repre- directors’ report. senting Broog Trading Company), Ali Youssef “As such, our shareholders and policyholders Hussein Kamal (representing Al Kamal Inter- will see further digitisation and streamlining of national Group), Jassim Mohamed Ibrahim Jai- our processes and an expansion of our highly- dah (representing Al Jaidah Motors and Trading successful direct insurance business,” the re- Company), Sheikh Jassim bin Hamad bin Jassim port said. Jabor al-Thani (representing Al-Mirqab Capital The report stated that the insurance market Company), and Khalaf Ahmed al-Mannai – by in the region is expected to grow along with appointment of the General Retirement and GDP as the rising population and improv- Social pension Authority (Social Pension Fund). ing awareness, as well as mandatory insurance Abdullah bin Khalifa al-Attiyah, Sheikh Ab- schemes, improved regulation, and infrastruc- dul Rahman bin Saud bin Fahd al-Thani and ture investments generate greater demand. Sheikh Hamad bin Faisal bin Thani al-Thani “Going into 2020, we are slightly more bull- won the membership for the independent cat- ish. Global fi nancial markets will stay volatile egory, and Hassan bin Hassan al-Mulla al-Jafi ri as we enter the year of the US presidential elec- came as a standby member. tions. Although the Phase One Trade Deal be- Group president Khalifa Abdulla Turki al- tween the US and China was regarded as a ma- Subaey said, “Despite global repercussion, jor success, diffi cult issues remain unresolved. which has massively infl uenced major sectors These could weigh on the global economy and in the region, QIC Group has witnessed strong the capital markets. Unconventional monetary business momentum and has performed in line policy and negative yields are here to stay, as with our expectations. central banks will continue their highly accom- Deputy chairman Abdulla bin Khalifa al-Attiyah presiding over QIC Group’s Annual General Meeting held yesterday at Grand Hyatt Doha Hotel at West “For 2020, our outlook remains cautiously modative policy stance. Bay Lagoon. PICTURE: Shaji Kayamkulam positive. We shall focus on consolidation and “However, Qatar and the Mena region are enhance our operational effi ciency. With re- expected to benefi t from economic diversifi ca- continued the report, which was delivered by cussed the group’s annual performance and en- solidated fi nancial statements, independent newed focus on achieving bottom-line driven tion and reduced dependence on hydrocarbon deputy chairman Abdulla bin Khalifa al-Atti- dorsed the recommended distribution of cash auditor’s report, board of directors and corpo- growth, we will continue to maximise value for exports. Qatar is poised to benefi t from ongo- yah, who chaired QIC Group’s annual general dividend payout of 15% for the year ended De- rate governance reports for 2019. our shareholders, our trusted business partners ing investments for the upcoming FIFA World meeting yesterday. cember 31, 2019. During the AGM, the shareholders also fi nal- and customers while supporting development Cup 2022 and continued population growth,” During the meeting, the shareholders dis- The meeting also approved QIC Group’s con- ised the appointment of the auditors for 2020. of the sector and the economy.”

Al-Kaabi holds talks with US Qatar Airways, American Airlines Secretary of Treasury in Doha sign strategic codeshare agreement

Qatar Airways has signed a “significant” codeshare agreement with American Airlines in a move that will “increase commercial co-operation, bolster connectivity and create hundreds of new travel options” for millions of customers. The new agreement will establish a partnership at a global level between two of the world’s “most connected” airlines, linking some of the largest airport hubs in the US to the Hamad International Airport (HIA) in Doha, voted the Middle East’s best hub and holder of a place in the world’s top five airports for the last three years. Qatar Airways Group Chief Executive HE Akbar al-Baker said, “We are very pleased to secure this strategic partnership with American Airlines – an agreement between two successful and The new agreement will establish a partnership ambitious airlines with a shared common purpose to enhance at a global level between two of the world’s “most the customer experience. The deal will bring together two connected” airlines, linking some of the largest of the world’s largest airline networks, increasing choices for airport hubs in the US to the Hamad International millions of passengers and providing seamless connectivity Airport in Doha to a significant number of new destinations, in line with Qatar Airways’ successful growth strategy. Angeles (LAX), Miami (MIA), New York (JFK) and Philadelphia “We have moved on from past issues and look forward to (PHL), and as well as on AA international flights to and from working closely with American Airlines to build a world-leading Europe, the Caribbean, Central and South America (subject to partnership for all our customers. This agreement will harness regulatory approval). our complementary strengths and resources and enable more American Airlines passengers will be able to book travel on all customers to experience Qatar Airways’ award-winning product Qatar Airways flights between the US and Qatar and beyond to a quality.” range of destinations in the Middle-East, East Africa, South Asia, “Our goal is to continue to expand and deepen global the Indian Ocean and South East Asia (subject to regulatory partnerships to complement American’s network and create approval). more choice for our customers,” said American’s chairman and Following the reactivation of the codeshare, both airlines will HE the Minister of State for Energy Aff airs Saad bin Sherida al-Kaabi, held talks in Doha with Steven Mnuchin, CEO Doug Parker. “The issues that led to the suspension of our also explore the opportunity for American Airlines to operate US Secretary of the Treasury, who is currently on an off icial visit to Qatar. Discussion during the talks partnership two years ago have been addressed and we believe flights between the US and Qatar, along with a number of joint focused on the various aspects of co-operation between both countries, and means to enhance them. resuming our codeshare agreement will allow us to provide commercial and operational initiatives to further strengthen this Al-Kaabi accompanied Mnuchin on a tour of a number of Qatar’s oil and gas locations and facilities, service to markets that our customers, team members and renewed partnership. including Ras Laff an Industrial City, where Mnuchin was briefed on its various components that help ensure shareholders value, including new growth opportunities for Qatar Airways currently operates a modern fleet of more than the “free, safe, and unhindered” flow of Qatari energy products to the world. HE the Governor of the Qatar American Airlines. We look forward to the renewed co-operation 250 aircraft via its hub HIA to more than 170 destinations Central Bank, Sheikh Abdulla bin Saoud al-Thani, also met yesterday with Mnuchin and his accompanying between our airlines and hope to build an even stronger worldwide. delegation. During the meeting held in the presence of Sheikh Mohammed bin Hamad al-Thani, QCB Deputy relationship with Qatar Airways over time.” American Airlines off ers customers some 6,800 daily flights Governor and chairman of the National Anti-Money Laundering and Combating the Financing of Terrorism The codeshare agreement with American Airlines (AA) will allow to more than 365 destinations in 61 countries from its hubs in Committee, they stressed the importance of the Qatari-US strategic partnership and reviewed the bilateral Qatar Airways’ passengers to travel on AA domestic flights Charlotte, Chicago, Dallas-Fort Worth, Los Angeles, Miami, New relations in various financial and banking aspects. departing Boston (BOS), Dallas (DFW), Chicago (ORD), Los York, Philadelphia, Phoenix and Washington, DC.

Gulf Times 4 Wednesday, February 26, 2020 BUSINESS

Qatar’s cost of living, based on CPI inflation, Qatar shares edge declines 0.41% year-on-year in January

By Santhosh V Perumal and hotels, which has a 6.08% Business Reporter weight, soared 4.96% and 1.54% year-on-year and month-on-month lower on strong respectively in the review period. Qatar’s cost of living, based The index of health, which carries on consumer price index (CPI) 1.79% bearing, witnessed 3.07% and inflation, declined 0.41% year-on- 2.21% surge on yearly and monthly year in January 2020 mainly on fall basis respectively in January this in the indices of housing, utilities, year. recreation and communication, Miscellaneous goods and services, according to the off icial statistics. which has a 5.69% weight, saw selling pressure The country witnessed a 0.9% its index gain 1.97% year-on-year, shrinkage in inflation in January but fell 1.73% month-on-month in By Santhosh V Perumal Total trade volumes rose 48% to compared with December 2019, January 2020. Business Reporter 102.61mn shares, value by 51% to according to figures released The index of transport, which has QR317.34mn and transactions by 47% by the Planning and Statistics a 14.59% weight, shot up 1.69% on to 9,137. Authority (PSA). a yearly basis, even as it was down tronger selling, especially within The telecom sector’s trade volume The International Monetary Fund, 1.76% on a monthly basis in January the realty, industrials and tel- more than tripled to 8.81mn equi- in its Article IV consultation with this year. The sector has the direct Secom sectors, yesterday dragged ties and value more than doubled to Qatar, said inflation is projected linkage to the dismantling of the Qatar Stock Exchange by more than QR29.85mn on a 58% increase in deals to peak at 3.7% in 2020 with the administered prices in petrol and 66 points. to 1,418. introduction of a value added tax, diesel. Foreign funds’ increased profi t The real estate sector’s trade volume but converge to 2% in the medium The price of super gasoline booking pressure drove the 20-stock more than doubled to 35.34mn stocks term. witnessed a year-on-year increase Qatar Index down 0.68% to 9,703.68 and value also more than doubled to The index of housing, water, of 23% in January 2020, while it points, recovering from a low of 9,530 QR31.37mn on more-than-doubled electricity and other fuels – with a was flat on a monthly basis. In the points. transactions to 1,187. weight of 21.89% in the CPI basket case of premium gasoline, it soared Local retail investors’ weakened The transport sector’s trade volume – saw a 3.69% and 0.9% declines by 17% on yearly basis; whereas it buying interests also had its role in soared 88% to 3.45mn shares and value year-on-year and month-on-month was unchanged month-on-month. dampening the market, which is down more than doubled to QR9.11mn on an respectively in January 2020. Diesel price saw a 6% year-on- 6.92% year-to-date. Foreign funds’ increased profi t booking pressure yesterday drove the 86% jump in deals to 335. The CPI of January 2020 excluding year increase, but was unchanged Market capitalisation saw about 20-stock Qatar Index down 0.68% to 9,703.68 points, recovering from a There was an 18% surge in the in- “housing, water, electricity, gas and month-on-month. QR4bn, or 0.66%, decline to low of 9,530 dustrials sector’s trade volume to other fuels, however, rose 0.55% on Food and beverages, which has a QR536.96bn mainly owing to mid and 21.25mn equities, 16% in value to yearly basis, even as it fell 0.78% on weight of 12.58% in the CPI basket, microcap segments. and banks and fi nancial services February 24. QR50.16mn and 33% in transactions monthly basis. witnessed a 1.49% and 0.29% Islamic stocks were seen declin- (0.31%). The Gulf institutions’ net sell- to 1,955. The index of recreation and culture, increase year-on-year and month- ing faster than the other indices in the More than 67% of the traded con- ing grew considerably to QR21.13mn The insurance sector’s trade volume which has a 12.68% weight in the on-month respectively in January bourse, where the domestic institu- stituents were in the red with major against QR16.57mn the previous day. shot up 10% to 4.21mn stocks, value by CPI basket, saw 4.15% and 5.43% 2020. tions were increasingly net buyers. losers being Mazaya Qatar, Barwa, Non-Qatari individuals’ net selling 75% to QR12.29mn and deals by 55% to drop both year-on-year and month- Education, with a 5.75% weight, Trade turnover and volumes were on Ezdan, United Development Com- also rose noticeably to QR3.36mn com- 331. on-month respectively this January. saw its index tread a flat course on the increase in the bourse, where the pany, Vodafone Qatar, Ooredoo, Qatar pared to QR1.22mn on Monday. The banks and fi nancial services Communication, which carries a monthly basis but registered a realty, banking and industrials sectors National Cement, Industries Qatar, The Gulf individuals turned net sell- sector saw a 5% rise in trade volume 5.87% weight, saw its group index 0.95% growth on a yearly basis in together accounted for more than 76% Gulf International Services, Mesaieed ers to the extent of QR0.41mn against to 21.29mn shares, 41% in value to shrank 2.44% and 0.09% on yearly January this year. of the total trading volume. Petrochemical Holding, Qatar Islamic net buyers of QR0.76mn on February QR149.35mn and 34% in transactions and monthly basis respectively in The index of clothing and footwear, The Total Return Index fell 0.2% to Bank, Dlala, Qatar Oman Investment, 24. to 3,085. January 2020. which has a 5.11% weight in the CPI 18,029.2 points, the All Share Index Salam International Investment and Qatari retail investors’ net buying However, the consumer goods sec- In the case of furniture and basket, was up 0.36% and 1.48% by 0.23% to 2,922.32 points and the Al Qatar German Company for Medical weakened signifi cantly to QR5.27mn tor’s trade volume declined 11% to household equipment, which has year-on-year and month-on-month Rayan Islamic Index (Price) by 1.17% to Devices; while Gulf Warehousing, Mi- compared to QR13.92mn the previous 8.27mn equities, whereas value ex- a 7.7% weight in the CPI basket, the respectively in January 2020. 2,078.3 points. laha, Doha Bank and Commercial Bank day. panded 60% to QR35.22mn and deals index was down 0.49% on a yearly The tobacco index, which has a The realty index plunged 2.28%, were among the gainers. However, domestic institutions’ by 48% to 826. basis, but rose 0.63% month-on- 0.27% weight, was flat both on industrials (1.47%), telecom (1.45%), Non-Qatari funds’ net profi t net buying strengthened infl uentially In the debt market, there was no month in January 2020. yearly and monthly basis in the insurance (0.6%) and consumer goods booking increased substantially to to QR54.87mn against QR11.86mn on trading of sovereign bonds and treas- However, the index of restaurants review period. (0.43%); while transport gained 0.82% QR35.26mn compared to QR8.75mn on Monday. ury bills. Gulf Times Wednesday, February 26, 2020 5 BUSINESS

Sensex slips further; rupee recovers

Bloomberg, Reuters TCS contributed most to the Mumbai index advance and was the big- gest winner with a 1.9% gain; Reliance Industries contributed ndian stocks fell, adding to the most to the index decline the benchmark’s steepest with a 2% fall, Sun Pharma was Idecline in three weeks, as the biggest loser with a 2.4% fall. investors assessed the economic Meanwhile the rupee yester- impact of the novel coronavirus. day recovered 13 paise to close The S&P BSE Sensex dropped at 71.85 (provisional) against 0.2% at the close in Mumbai. the US dollar amid easing crude The NSE Nifty 50 Index also ad- oil prices and weakening of vanced 0.3%. the American currency in the India’s stock market is the overseas market. Forex traders only major one in Asia that’s said while weak dollar and eas- posted foreign infl ows so far ing crude oil prices supported this year, with a net infl ow of the rupee, losses in domestic $3.5bn since January, according stocks and foreign fund outfl ows to data compiled by Bloomberg. weighed on the local unit re- Meanwhile, the central bank and stricting its upmove. policy makers are mulling steps At the interbank foreign ex- to boost growth in an economy change market, the local cur- set for its weakest expansion in rency opened on a positive note 11 years. at 71.84. During the day, it saw a “It’s clear that the virus high of 71.78 and a low of 71.90. will cause companies to suf- The Indian currency settled fer earnings losses around the higher by 13 paise at 71.85, cut- Bull statues displayed outside the Hong Kong Stock Exchange building. Hong Kong stock investors are the worst off in 16 years relative to the rest of the world as concerns globe,”said Dharmesh Kant, ting short its three-day losing mount over the impact of the coronavirus on an economy already reeling from last year’s protests. head of retail research at Indi- run, according to provisional anivesh Securities Ltd in Mum- market data. bai. “The question is whether The domestic unit had settled that has been accounted for in at 71.98 against the American the recent sell-off .” currency on Monday. Fourteen of 19 sector sub- “Rupee started the day indexes compiled by BSE Ltd strong on back of fi rm opening fell, led by a gauge of energy of stocks, selling by exporters companies. and a weak dollar,” said Jateen Hong Kong stocks trade Half of the 30 shares that Trivedi, senior research analyst make up the Sensex rose, while (Commodity & Currency) at half fell. LKP Securities. near lowest versus Surging yen is shattering doubts about its haven status

Bloomberg concern that Asia’s second-largest Tokyo economy could slip into reces- sion. Still, with the yen’s gains world since 2004 slowing yesterday, caution may Reports of the yen’s demise may be warranted and the jury is still Bloomberg 22.7% in January year-on-year. “Hong In contrast, Chinese authorities have stimulus next month, they wrote, add- have been exaggerated. out for traders on the currency’s Hong Kong Kong has a rather unbalanced economy, generated a long list of support meas- ing that disappointing earnings news Investors are charging into continued correlation with safety. which relies heavily on sectors like re- ures to bolster the world’s second larg- might hurt Chinese-listed equities less Japan’s currency as coronavirus Monday was a holiday in Japan, tail and tourism that will be hit hard by est economy – cutting taxes and lower- than those in Hong Kong. fears roil global markets, rebuff - which suggests orders may not ong Kong stock investors are the virus due to less mainland visitors,” ing interest rates among other moves. There, institutional investors have a ing recent speculation that a have reflected demand for dollars the worst off in 16 years rela- said Ronald Wan, chief executive of Chinese President Xi Jinping said bigger influence and are more worried yen slump could be around the by local funds. Htive to the rest of the world as Partners Capital International Ltd “It’s authorities will step up policy adjust- about fundamentals than retail inves- corner. The rally has also stalled at key concerns mount over the impact of the a market with high risk at the moment.” ments to achieve this year’s economic tors, who dominate Chinese trading. The Asian currency is heading technical levels. The choppy price coronavirus on an economy already The Hang Seng Index edged up 0.3% and social goals, state-run CCTV re- This year’s earnings forecasts for for its biggest three-day gain action means some investors are reeling from last year’s protests. yesterday while the CSI 300 index ported on Sunday. Hong Kong stocks have dropped by the since August, after outperform- sticking to gold, US Treasuries or The Hang Seng Index is near its low- slipped 0.2%. The stimulus has kept investors there third most among MSCI Asia Pacific ing all of its major developed the Swiss franc as better gauges est level relative to the MSCI All Coun- City officials aren’t offering much in a buying mood following February 3’s ex-Japan companies since mid-Janu- market peers this week as stocks of haven allure. try World Index since 2004, even after optimism to investors. Paul Chan, the record stock rout. “While the Chinese ary, said Goldman Sachs Group Inc. slumped. For Momtchil Pojarliev, head of Monday’s brutal sell-off in the US. The city’s financial secretary, wrote last government can utilise both monetary Demonstrators stand in a cloud of The move came as clusters of currencies at BNP Paribas Asset Hong Kong gauge has also decoupled week that Hong Kong is facing “tsuna- and fiscal policy tools to stimulate its tear gas during a protest in November the virus in Italy and Iran send Management, the yen is second from mainland equities, falling to a mi-like” shocks and may incur a record economy, there’s nothing much Hong 2019. worrying signs about how it is only to the dollar as a foreign- three-year low relative to the CSI 300 budget deficit in the next fiscal year, Kong can do on rates and money sup- “Many sectors, including retail, spreading. exchange haven, and he is wager- Index. with coronavirus impacts being felt be- ply due to its US dollar peg,” said Alex property and tourism, hadn’t recovered The yen’s 0.8% advance on ing that both will outperform Hong Kong already faced a gloomy yond retail, restaurants and tourism. Wong, director of asset management at yet from the protests last year and the Monday was in stark contrast to their Group-of-10 peers at least outlook before the coronavirus Hong Kong, restrained by a currency Ample Capital Ltd. market was still waiting for their an- the middle of last week, when through the second quarter. emerged, as months of political unrest peg to the US dollar, has no independ- “There’s no such option as a govern- nual reports to gauge the earnings im- the currency – traditionally seen He bought the Japanese cur- pushed the city’s economy into reces- ent monetary policy. ment rescue, so it’s normal to see lower pact,” said Alexious Lee, head of China as a shelter during times of rency against the euro on Mon- sion. Tourism has disappeared and re- The city’s legislative council on stock valuations.” strategy research at Jefferies Hong unrest – actually fell amid rising day, having last week purchased tail is suffering, while concern over the Friday passed a HK$30bn ($3.85bn) Citigroup Inc analysts said in a re- Kong Ltd. global virus concerns. Back it against the Canadian dollar. impact of the virus on Chinese earnings spending plan for virus-fighting ef- search note on Monday that Hong Kong “Now that we also have the epidemic, then, it touched its weakest level He also shifted last week out of is also weighing on mainland compa- forts and to assist businesses. Further shares are liable to continue lagging nobody knows whether and how worse against the greenback in close “some dollar longs” and into yen nies traded in the city. Data on Tues- steps are to be introduced Wednesday mainland markets in March. There’s the Hong Kong fundamentals will be to 10 months, fuelled in part by to diversify his haven positions. day showed Hong Kong’s exports fell in the government’s budget proposal. potential for Beijing to announce fresh for 2020.” Top Chinese university group joins list of bond defaulters Asian markets end mixed after

Bloomberg jolted by surging defaults and that are overseen by the nation’s the disruptive coronavirus powerful state asset regulator, virus-fuelled global bloodbath Hong Kong outbreak. A government work such university-backed team, which is led by China’s businesses are ultimately AFP The troubled business arm of a central bank and includes the controlled by China’s Ministry of Hong Kong top Chinese university has joined Ministry of Education and Education instead. the country’s expanding list of other financial regulators, will The company has suspended bond defaulters, after missing an take charge of Founder’s debt trading in seven of its off shore sian markets were mixed yesterday extended repayment deadline reorganisation. bonds on the Hong Kong Stock as bargain-buying after the previous on a local note. In a filing to the Shanghai Exchange from Monday. Aday’s bloodbath tempered fears that Peking University Founder Clearing House on Friday, Founder Group’s woes are also the coronavirus will develop into a pandem- Group Corp’s failure to make Founder Group said that spreading beyond the bond ic and hammer the global economy. good on a 270-day 2bn yuan according to the court, its market. Investors of 1.8bn yuan News at the weekend that COVID-19 was ($285mn) bond on Friday came creditors must file their debt worth of asset-backed securities, now spreading and claiming lives far beyond after a court in Beijing agreed claims to the administrators by a bond-like instrument that China sparked a fl ood to safety on trading to a key creditor’s request to April 21. counts Founder Group as one of fl oors across the world, with the Dow on put the conglomerate under “Founder’s recovery is going to the two guarantors, will vote on Wall Street suff ering its worst day in two debt restructuring. Founder be an important guide for state- a proposal March 9 to demand years. Group missed the bond’s linked firms. We’ve already seen early repayment, according to With the death toll at around 2,700 and original repayment deadline in deeper and deeper haircuts for a public filing to the Shanghai 80,000 infected, the World Health Organi- December. these companies like Tewoo and Clearing House on Friday. sation said the outbreak had “peaked” in The company looks poised to Qinghai,” said Owen Gallimore, The 15-year ABS was issued China but warned that all countries should become China’s biggest onshore head of credit strategy at in 2018 by Peking University prepare for a “potential pandemic”. Employees work on the trading floor of the Tokyo Stock Exchange. The Nikkei 225 closed bond defaulter, overtaking CEFC Australia & New Zealand Banking Science Park Construction “As the number of COVID-19 infections down 3.3% to 22,605.41 points yesterday. Shanghai International Group, Group. Gallimore was referring & Development Co, a sister outside of China rises, investors are consid- a unit of privately-held CEFC to commodities trader Tewoo company of Founder Group’s ering the potential ramifi cation on the glo- are coming round to the realisation that this in the wake of the China-US trade pact and China Energy Co Founder Group Group Co and aluminium whose business includes hotels bal economy beyond weaker growth in Chi- particular crisis is likely to have a slightly as indicators suggested a slowdown ap- has 23 onshore bonds with a producer Qinghai Provincial and property development. The na and supply chain disruptions,” JP Morgan longer shelf life than many thought was the peared to be bottoming out. combined outstanding value of Investment Group Co, two borrower relies on revenues Asset Management’s Tai Hui said in a note. case a couple of weeks ago,” said CMC Mar- David Wong, an investment strategist at 34.5bn yuan, according to data prominent Chinese state-run including rentals from properties “Equity markets will remain volatile kets UK analyst Michael Hewson in a note. AllianceBernstein in Hong Kong, said: “The compiled by Bloomberg. defaulters that have recently it owns to repay the ABS. in the near term, driven by new infection They happen every year and according to benefi t of global quantitative easing and the Beijing’s recent decision to put imposed deep losses on their Despite the authorities’ resolve numbers around the world.” the World Health Organisation fl u kills up to trade war truce should ultimately provide Founder under a court-led debt dollar bond holders. to remove the uncertainty, a Tokyo led losses as markets reopened 650,000 a year, yet markets are reacting to more upside to the global economy than the overhaul came as a signal that Spun off from Peking University bankruptcy by Founder Group is to play catch-up with Monday’s global an outbreak that has so far only aff ected a coronavirus will apply downside risk.” policymakers intend to off er in 1986, Founder Group is a set to further unnerve investors sell-off. The Nikkei ended more than 3% fraction of that number.” The return to equity markets also saw more clarity on their plan to conglomerate whose operations now that China has suff ered lower, while Sydney and Wellington each While the region is suff ering another gold fall sharply, losing 3% after hitting a tackle defaults by one of the include medical, Internet and two consecutive years of record shed more than 1% and Shanghai dipped broad retreat, the losses are being tempered seven-year high on Monday. nation’s most obscure groups of commodities-trading businesses. onshore bond failures due to a 0.6%. There were also losses in Bangkok by bargain-buying, while reports said a US High-yielding, riskier currencies were borrowers. Founder Group belongs to sharp economic slowdown and and Jakarta. fi rm had developed a possible vaccine that also benefi ting, with the South Korean won The unusually speedy move by a special group of Chinese trade tensions. However, Hong Kong added 0.2%, while had been sent for testing. up 0.8%, Australia’s dollar 0.5% higher the authorities to potentially borrowers with vague and Onshore corporate bond Seoul jumped 1.2%, having plunged almost And analysts said the recent losses would and the Mexican peso gaining 1%. In To- impose bankruptcy on Founder questionable support from defaults have reached 10.8bn 4% on Monday in reaction to a spurt of in- provide a good buying opportunity as they kyo, the Nikkei 225 closed down 3.3% to Group also suggests they are the state, a long-held concern yuan ($1.54bn) so far this year, fections in South Korea at the weekend. looked past the virus and contemplated an 22,605.41 points; Hong Kong — Hang determined to remove a big among investors. Unlike down from 14.1bn yuan in the Singapore added 0.6%, Taipei rose 0.1% improving economic outlook. Seng ended up 0.2% to 26,860.44 and uncertainty from a bond market government-owned companies same period last year. and Mumbai put on 0.3%. World markets had been rallying at the Shanghai — Composite closed down “There is no question fi nancial markets start of the year on hopes for global growth 0.6% to 3013.05 points yesterday. Gulf Times 6 Wednesday, February 26, 2020 BUSINESS

Stocks ‘look very good’ to Trump, but the dip buyers have doubts

Bloomberg of the biggest rallies of the decade- lowing the drop was 2.9%. Thank on- gained as much as 1% after the under- others think there is still a little more pect a rebound. For one thing, the London long bull market in its very next trad- going fear and uncertainty surround- lying gauge tumbled 3.4% a day earlier. selling to go. “I don’t think we have S&P 500’s earning yield – profit ing session. ing the coronavirus, and a drip-drip But the mood was fragile, and futures seen enough of a pullback to warrant relative to share price – is more than As of yesterday, markets were show- of bad news regarding the human and briefl y turned red before trading 0.5% dip buying just yet,” said Edward Per- 3 percentage points higher than the n December 2018, President Don- ing less confi dence: Futures for all economic costs of the illness. higher in New York. kin, the chief equity investment offi cer 10-year yield, the highest since Oc- ald Trump called the bottom of a three of the main American gauges “If you have uncertainty still The gloomy turn coincided with on- who oversees $45bn at Eaton Vance tober and way above its historic av- Inear three-month sell-off in US threatened to give up their gains, rais- building you have to be very cau- going updates about the spread of the Management in Boston. erage in a valuation method known equities. He tried again this week, but ing the odds of a fourth day of declines tious to buy the dip, unless valua- virus. Iran reported a total of 15 deaths “For investors with mandates to be as the Fed model. the jury is out on whether this call will for the S&P 500 for the fi rst time since tions are really bombed out,” Chris- from the illness, the most fatalities fully invested, I favour non-US stocks For some, that’s a signal the share prove as prescient. August. tian Mueller-Glissmann, managing outside China. and quality cyclicals with strong bal- index is poised to climb as investors “Stock market starting to look very Crucially, that would break a buy- director of portfolio strategy and Italy, the outbreak’s epicentre in Eu- ance sheets. take advantage. good to me!” Trump tweeted after the the-dip pattern that for more than a asset allocation at Goldman Sachs rope, said infections in the Lombardy For investors looking across all asset “We believe it’s not time to start Monday close on Wall Street, echoing year has helped keep the longest bull Group Inc, told Bloomberg TV on region rose to 212 from 172. Earlier classes, keeping some dry powder in counterpunching, but expect value his sentiments 14 months ago when he market on record alive. Monday. “This correction could go a South Korea reported 84 new infec- cash and waiting for more compelling to be uncovered and opportunities to told reporters at the White House there On the fi ve occasions, America’s bit deeper.” tions for a total tally of 977. opportunities probably makes sense.” arise over the next several days and was a tremendous opportunity to buy benchmark fell more than 2% in 2019, For a while yesterday it looked like To be sure, it’s not so much that pan- If and when the buy-the-dip co- weeks,” Wells Fargo Securities LLC equities. the average gain in the next session was investors might shrug off such warn- ic has set in. But there’s enough doubt hort decides the declines have run strategists including Christopher Har- Back then, the S&P 500 staged one 1.4%. The advance in the fi ve days fol- ings. Contracts for the S&P 500 had to stay the hand of many buyers, while far enough, there are reasons to ex- vey wrote in a note this week.

After a stock meltdown, some Asian managers In Singapore, REITs see no rush to sell Bloomberg mately provide more upside Hong Kong to the global economy than the coronavirus will apply downside risk.” ome fund managers AXA Investment is simi- are sticking to their larly steadfast, making few are becoming more Spositive outlook for changes to its investment Asian equities even as fears strategy for Asian equities. grow over the global spread The sharp sell-off in stocks of the coronavirus. will be followed by a “rapid AllianceBernstein Hold- recovery,” much like what ing and Union Bancaire happened with Sars, Simon Privee are betting that easy Weston, an equity fund monetary policies at the manager at the fi rm, wrote important than ever world’s central banks will in a note on Monday. Asia’s help stocks weather virus earnings are still expected to Bloomberg concerns. grow by mid-teen percent- Singapore AXA Investment Manag- ages, driven by technology ers is bullish on corporate and semiconductor compa- earnings, and AMP Capital nies, he said. ingapore is becoming a hub for the Investors is keeping its eq- Not all Asia investors property-management industry: It uity exposure intact. “We are so sanguine. Aberdeen Shas more foreign REITs than any- have been taking risk in our Standard Investments and where else in the world, and the companies’ portfolios in view of con- Northcape Capital last week importance on the nation’s benchmark eq- tinued global central banks’ fl agged caution about the uity index is the highest it’s ever been. monetary easing,” said An- spike in confi rmed infec- Since the city-state saw the fi rst share thony Chan, chief invest- tions outside of China. sale of a real estate investment trust in ment strategist for Asia at Paras Anand, Asia Pacif- 2002, it has pocketed 41 IPOs of such Union Bancaire Privee. ic’s chief investment offi cer fi rms – including seven foreign-currency- Declines in share prices at Fidelity International, denominated ones. In comparison, Hong on deepening concern as warns that central-bank Kong, the world’s top initial public off ering the virus spreads outside easing has pushed valua- venue last year, has just had 11 since then, China provide a “better tions ahead of underlying according to Bloomberg-compiled data. buying opportunity ahead,” fundamentals for many The country’s favourable tax regime and he added. parts of the market, and well-established legal system made it par- Asian stocks extended that successful strategies in ticularly appealing for international invest- losses to a fourth day yes- the past may not work in the ment trusts. Being commercially fl exible terday. Japan reopened fol- future. and open to tweaking its regulations has al- lowing a holiday, with its “Whilst we feel that this lowed Singapore to continue to lead in the steepest drop in more than could represent a buying area, according to Ee Kean Wong, capital a year, and the S&P 500 opportunity, especially in markets partner at WongPartnership LLP. Index suff ered its worst de- Asia and emerging markets, The hunt for yield has certainly helped cline since 2018 overnight. investors would do well to boost the allure of the trusts as global cen- The outbreak has killed recognise that this recent tral banks keep lowering interest rates to Buildings stand in the central business district as the sun sets in Singapore. The city-state is becoming a hub for the property-management more than 2,600 people weakness may have a way fend off an economic slowdown, and to industry: It has more foreign REITs than anywhere else in the world, and the companies’ importance on the nation’s benchmark equity and infected close to 80,000 to run given that it could contain the coronavirus outbreak that has index is the highest it’s ever been. worldwide, with more and be a sign that a well-worn so far killed some 2,500 people. With a more countries report- playbook may have only just yield of 6.2% – one of the highest globally – proceeds in three of the last fi ve years. More as the nation’s investors have a penchant ket update from the Singapore Exchange. ing cases. Still, the World stopped working,” Anand Singapore-listed REITs are sought after and foreign investment trusts have fl ocked to for high-dividend stocks. The FTSE Straits “With the growing popularity of REITs Health Organization said it wrote in a note yesterday. more frequently traded by investors than the city-state, with the recent pound-de- Times REIT Index has gained 18%, com- among investors, more listings by these isn’t yet a pandemic. Nader Naeimi, the head most of the blue-chip stocks in the country. nominated Elite Commercial REIT being pared with a drop of 9.4% for the Straits trust can help to improve the market turno- To protect against down- of dynamic markets at AMP The importance of REITs has also shown the fi rst of its kind to be sold there. Times Index. The former reached a 12-year ver,” said United First’s Oh. side risk amid “not too at- Capital Investors in Syd- up in their Straits Times Index weighting, “The investing community here will al- high this month. “It works when there are a variety of of- tractive” valuations, Chan ney, said his fi rm is main- which has doubled over the last fi ve years. ways have an appetite for REITs, given the Trading volume: Property-manager ferings to appeal to the diverse group of in- said that Union Bancaire taining equity exposure “as Here is a look at how property managers attractive yields they off er,” said Jin Rui Oh, stocks have attracted signifi cant trading vestors, allowing them to rotate into diff er- Privee is “using structured the worst of the outbreak are becoming more signifi cant to Singa- a Singapore-based director at United First over the years, taking fi ve spots out of the ent sectors.” products, long-short hedge is behind us.” But the fi rm pore’s fi nancial market: Partners. top 10 most-active shares in the Straits Index weight: As REIT listings rise, funds and non-directional is adding gold and silver as Initial public off erings: The city- Yields: Singapore-listed investment Times Index, according to Bloomberg- their weighting on the Straits Times Index strategies.” they are better hedges than state’s journey to become a REIT hub start- trusts boast an average forward dividend compiled data. has grown to 11% in 2020 from less than “The markets are due a fi xed income in the current ed in 2002, with the fi rst investment trust yield of 6.2%, one of the best globally, ac- By contrast, DBS Group Holdings Ltd, 5% in 2015, according to Bloomberg-com- near-term wobble” as eco- environment. IPO from CapitaLand Mall Trust. Its market cording to Bloomberg-compiled data. the largest bank in Southeast Asia by assets, piled data. nomic data weakens, said “The need for fi scal capitalisation has since jumped 16 times to Meanwhile, they also give out the high- and Keppel Corp Ltd, an infrastructure-to- “With the successful listing of Manulife David Wong, an investment stimulus is real,” Naeimi $6.6bn, data compiled by Bloomberg show, est payout among all sectors in the Straits property conglomerate, rank 15th and 17th, US REIT, Cromwell European REIT, Prime strategist at AllianceBern- said. While the outbreak as it keeps issuing new shares. Times Index. respectively. US REIT, and Elite Commercial REIT in stein in Hong Kong. How- “is defl ationary at the start, Singapore’s reliance on REIT listings has Performance: These REITs have out- Singapore’s 43 property trusts contrib- Singapore, we can expect more interna- ever, “the benefi t of global it will most likely lead to grown steadily. performed the city-state’s benchmark in- ute 26% of the stock market’s year-to-date tional REITs to follow suit in the years to quantitative easing and the sooner than expected re- They account for the majority of IPO dex by a wide margin in the past two years, average daily turnover, according to a mar- come,” Oh added. trade war truce should ulti- turn of infl ation.” How strategists and investors see coronavirus playing out

Bloomberg where valuations are,” Christian Mueller- Vishnu Varathan, head of economics and been previously expected. Supply chains Singapore Glissman, managing director of asset al- strategy at Mizuho Bank Ltd in Singapore. are becoming increasingly exposed, while location at Goldman Sachs Group Inc, said “This means that we’re going to see the services and tourism are suff ering across in an interview with Bloomberg TV. “Lower juxtaposition of more safe-haven demand.” many countries.” A raft of new coronavirus cases in numer- yields obviously make you want to own ‘Intense’ hunt for yield: “We have been China weakness: “Policymakers are ous countries outside China over the even more risky assets – like we always advocating a more balanced position trying to get the economy going again weekend has ignited fresh concern about call it TINA, there is no alternative – so you between bonds and equities in recent but we think weakness is likely to persist the ability of the illness to spread and its have people being forced to own some- weeks since we have little clarity on how well into the fourth quarter,” said Win potential economic impact. thing in equities. Secular growth stocks the outbreak would evolve. It seems like Thin, global head of currency strategy European shares plunged in London are trading at one of the highest valuation that the number of new cases in China is at Brown Brothers Harriman, of China. after Italy’s government imposed a lock- premia in history. The problem is some of coming down, with the daily number of “Stimulus is in the pipeline but it won’t down on an area of 50,000 people near those are also exposed to these supply- recovered patients higher than the new be enough to totally off set the growing Milan and took other measures as infec- chain disruptions, think about the big confirmed cases. impact of the virus.” tions there exceeded 130. South Korea’s FAANG names. As a result of that we think This may encourage the Chinese au- Asymmetric dollar strength: “US dol- Kospi tumbled 3.9% after the number that this in the near-term will potentially thorities to permit more workers to return lar strength will likely be asymmetric,” said of cases in the country surged and the create volatility in them as well. So there’s to work and limit disruption to produc- Citigroup Global Markets Asia-Pacific chief government raised its infectious-disease nothing really completely safe.” tion,” said Tai Hui, chief market strategist economist Johanna Chua. alert to the highest level. Iran reported an A shallow V: “It is diff icult to evaluate for Asia at JPMorgan Asset Management. “Given the low cost of capital globally eighth death. the impact thus far. High frequency data “The decline in bond yields also meant and comforting commitments from That’s all on top of the impact in China, show very little to no pick-up in activity so investors’ search for yield will remain authorities to render further support, where millions of firms face potential col- far. There may be a risk that a V-shaped intense. high yielding emerging-market FX lapse if banks don’t act. After meeting on recovery of Chinese growth turns out also outperformed quite substantially vs team asked investors about the impact of This underpins our constructive view (Indian rupee, Philippine peso) may not Friday, the nation’s leaders said they will to be shallower than many currently HY lately and the global ERP has shrunk. the outbreak and the vast majority of re- on EM fixed income and developed mar- hurt as much and is likely to outper- exercise more flexibility in monetary and assume,” HSBC Bank Plc strategists led We therefore prefer adding to HY than to spondents see both the risks as understated ket corporate debt.” form the low yielding EM FX especially fiscal policy. by Max Kettner wrote in a note. “Stick equities. We remain cautious on EM asset and expect US Treasury yields were likely Risk aversion: “Risk aversion is likely in Asia, where the Singapore dollar, Thai Here’s what market players are saying to underweight in equities but close classes and overweight gold and govern- to decline by 25 basis points (to about 1.3%). to intensify over the near term given the baht, Korean won etc are also the most about the latest developments: underweight in HY; remain overweight in ment bonds.” 80% of investors expect supply chains to sharp rise in cases in Korea, Italy and impacted on economic activity – and Hello TINA: “The key risk you’re facing IG credit and government bonds. Equities Normal by July: “More near-term panic return to near-normal by July though.” elsewhere,” said Mitul Kotecha, senior hurt on their current accounts. In spite is that this coronavirus now via a lot of seem to have escaped ‘the bad news is will weigh on risk, but panic is necessary to Hard to pick bottom: “With cases of emerging markets strategist at TD Securi- of being a high yield FX, the Indonesian these unwanted disruptions will actually bad’ paradigm. Other cyclical assets such increase containment odds. Credit markets COVID-19 still rising, it is hard to tell when ties in Singapore. “Markets are becoming rupiah may have some more unwind lead to negative earnings growth and that as FX or commodities have priced growth appear to recognise that,” said Dennis manufacturing will bottom, potentially set- increasingly focused on the risk of more of stretched long positioning before will potentially scare investors considering risks more appropriately. Equities have DeBusschere of Evercore ISI. “EISI’s Survey ting the stage for prolonged weakness,” said prolonged economic damage than had settling down.” Gulf Times Wednesday, February 26, 2020 7 BUSINESS

Dan Loeb’s Third Point HP says it will return $16bn to pushes for another breakup of investors to parry Xerox bid Prudential

Bloomberg Bloomberg San Francisco New York

P Inc announced it will return Activist investor Third Point $16bn to shareholders, pri- is pushing for a break up of Hmarily through buybacks, and Prudential Plc just four months boost cost cuts, trying to rally investors after the insurer spun off its UK against Xerox Holdings Corp for con- operations. trol of the world’s second-largest per- The New York-based hedge sonal computer maker. fund, which is run by Dan Loeb, HP will increase share repurchases wants the firm to separate its US to $15bn from a $5bn programme an- and Asian businesses, a move nounced in October. This will result it says would eliminate nearly in adjusted profit of $3.25 to $3.65 200mn pounds ($259mn) of per share in fiscal 2022, which is duplication costs. Prudential about $1 more per share than ana- rose as much as 3.7% in London lysts’ projections. trading yesterday. HP executives also said they have Third Point has built a stake engaged Xerox to discuss a potential of just under 5% in Prudential, combination on their terms, rather valued at about $2bn based on than succumbing to the printer maker’s the last close, making it one of hostile takeover eff ort. the firm’s biggest shareholders. The hardware giant raised its profi t The insurer should separate its forecast for fi scal 2020 to as much Asia business from Jackson Na- as $2.43 a share, excluding some ex- tional Life Insurance Co in the penses, bolstered by the surge of share US and pivot its strategy from repurchases scheduled after the com- dividend growth to long-term pany’s annual meeting. value creation, including by in- For the current period, profi t will creasing its stake in its Chinese be 49 cents a share to 53 cents a share, joint venture, it said. the Palo Alto, California-based com- Prudential completed the pany said on Monday in a statement. Signage for Hewlett-Packard stands at the company’s headquarters in Palo Alto, California. HP announced it will return $16bn to shareholders, primarily through spinoff of M&G Plc in a restruc- The forecast fell short of Wall Street’s buybacks, and boost cost cuts, trying to rally investors against Xerox Holdings for control of the world’s second-largest personal computer maker. turing in October. Loeb said the estimate of 54 cents, according to data rationale for splitting off M&G compiled by Bloomberg. icons of the technology industry that change, needs to have the right capital lengers, they’ll start to see a benefi t decreased 1%. In response to the falling applies to separating Jackson HP executives said supply-chain pioneered innovations consumers and structure and needs to have the right from $8bn in buybacks over the next ink sales, HP plans to change its busi- and the Asia unit. At the time of disruptions related to the coronavirus offi ce workers still use today, but have assessment of synergy.” year, according to HP. The company ness model starting late this year to the split, the company argued outbreak will cost the company about faded in an industry increasingly driv- HP believes a deal with Xerox would said it would issue a proxy statement in make some printers profi table upfront, that M&G and the rest of Pru- 8 cents a share in adjusted profi t in the en by software. Xerox has said it will only unlock $1bn in cost savings, not the next week to announce the date of rather than heavily discounting them dential had divergent market current quarter. HP doesn’t expect the launch a tender off er “on or around the $2bn Xerox executives have prom- its annual meeting, which is usually in and making up the diff erence with ink opportunities and strategies, virus known as COVID-19 to aff ect March 2” for HP shares valued at $24 in ised, because only 10% of their busi- April. sales. The company’s cheap printers off ering diff erent profiles of risk performance in the second half of 2020. cash and stock. nesses overlap, Lores said. HP will use a Fiscal fi rst-quarter profi t was 65 will now be incompatible with generic and reward. The company also said it would raise For each HP share, a holder would get combination of cash on hand and debt cents a share, excluding some expenses. or counterfeit ink cartridges. “The very persuasive logic its cost-cutting programme to $1.2bn $18.40 in cash and 0.149 Xerox shares. to fund the buybacks. Chief fi nancial That surged past HP’s previous pro- HP is the leader in the printing in- behind this explanation makes by 2022. HP, which had 56,000 work- Norwalk, Connecticut-based Xerox offi cer Steve Fieler said he expects to jection of as much as 56 cents for the dustry, with 20.6% of the market by us wonder what drove the ers as of October, is in the midst of a re- has also started a proxy fi ght, nominat- take out a “few billion” dollars of debt. quarter. Analysts estimated 54 cents. revenue, according to research fi rm board’s decision to keep Jack- structuring that could result in as many ing 11 candidates for HP’s board to help The company is committed to retaining For a year, HP has sought to stabilise Gartner Inc. Xerox is fourth, with 10% son and PruAsia together, when as 9,000 employee dismissals. close the deal. a debt ratio of 1.5 times to 2 times profi t, its profi table printing division, which of the industry. it made an equally compelling HP’s shares gained about 4% in ex- “We had a very strong fi rst quarter, from 1.1 times currently. started stumbling in February 2019 due Revenue from personal computers case to separate them along tended trading after closing at $22.10 in are putting in place a very aggressive Xerox’s largest investor, activist Carl to lower customer demand for ink and increased 2.4% to $9.9bn in the quarter, with M&G,” Loeb said in a letter New York. plan and we are confi dent we can de- Icahn, has pushed for a tie-up in any toner. Revenue declined less than 1% to despite disruptions from the coronavi- to Prudential on Monday. Com- The stock has declined about 7% in liver on it, as we have in the past,” HP form, so long as Xerox CEO John Visen- $14.6bn in the period ended on January rus outbreak. bining the Asia and US business the past 12 months. chief executive offi cer Enrique Lores tin leads the combined company. 31. Sales in the printing division fell 7% There were sales increases across in one entity makes “no strate- HP has repeatedly rejected Xerox’s said in an interview. “We are open to HP structured the buybacks as an to $4.7bn, with ink supplies dropping laptops, desktops and workstations. gic rationale,” he said. eff ort to secure a $35bn acquisition, explore a combination. Any combi- incentive for investors to reject Xerox’s 7% in the period ended on January 31. Corporate clients are upgrading their Shares in Prudential have saying it “signifi cantly undervalues” nation needs to address three issues: director candidates. Consumer hardware revenue de- computers to adopt Microsoft Corp’s risen more than 7% over the the company. A deal would unify two it needs to refl ect the right value ex- If shareholders vote against the chal- clined 13% and commercial devices Windows 10 operating system. past year, giving it a market value of 38bn pounds. Third Point argues the Asian business would be worth more than Pru- dential’s current market value, Norway wealth fund deputy CEO implying the market is applying a deeply negative value to the Trond Grande seeks top job JPMorgan says it’s not immune Jackson business. Chief Executive Off icer Mike Wells remains at the helm of and economic growth. The new boss will also to rates, lowers NII forecast Prudential, which said at the Bloomberg Oslo face a debate at home over which direction to time of the M&G spinoff that take the fund, after a spate of changes just in Bloomberg ing services. Interest rates hold- Susan Roth Katzke, an analyst at it will concentrate on its busi- the last year that included a limited exclusion New York ing near multiyear lows will take a Credit Suisse Group AG, said. nesses in the US as well as in The deputy chief of Norway’s $1.1tn sovereign of oil stocks. bite out of revenue, it said. The bank said it would help fi - Africa and Asia, where potential wealth fund, Trond Grande, is among the The successful candidate to succeed “We are not immune to the rate nance about $200bn related to for growth is strongest. applicants to take the helm of the biggest Slyngstad will need to have a deep PMorgan Chase & Co expects environment,” the New York- sustainable business practices and In 2018, Ping An Insurance investor of its kind. understanding of Norwegian society and net interest income to fall based bank said in the presenta- other green initiatives, up from (Group) Co considered buying Grande, 49, appears to be the obvious top speak at least one Scandinavian language, Jslightly to $57bn this year as tion yesterday. $175bn last year. It expects to use Prudential’s Asia business, contender among the eight people that Norges Bank Governor Oystein Olsen has lower interest rates squeeze tradi- Cost cuts have been a major fo- renewable energy for all its global people familiar with the matter applied – all men – and that also include the said. Realistically, that person is likely to tional lending businesses. cus, including shifting thousands power needs by the end of 2020. said at the time. fund’s former head of fixed income, Olav be a Norwegian national, Slyngstad has The bank kept its goal for return of jobs out of the New York area JPMorgan plans to discuss new The Shenzhen-based Bo, now a director at the central bank. One commented. on tangible equity at 17% and said to cheaper locations domesti- climate-focused fi nancing com- insurer went as far as asking the applicant was exempt from public disclosure, Grande has been deputy CEO since 2011 and its overhead ratio would be below cally and abroad over the past few mitments amid increasing scru- government about whether it according to the list published yesterday by has been mentioned by Norwegian media as 55% in the medium term, accord- years. Still, JPMorgan said ex- tiny on its relationship with the would be supportive of a deal, Norges Bank Investment Management, a unit one of the most likely candidates to take over ing to a web presentation before the penses could jump 2.5% this year fossil-fuel industry. Bloomberg and also discussed potential of the central bank that manages the fund the top job. A former chief risk off icer, Grande fi rm’s investor day in New York. to around $67bn. The bank said News reported on Monday that financing options with banks. yesterday. has also overseen the fund’s real-estate While the company showed it would spend $500mn more on the fi rm plans to halt lending to Prudential confirmed in a A successor to current chief executive off icer portfolio. Before joining NBIM in 2007, right how it has outperformed rivals in technology investments. some coal companies and won’t statement it had received the Yngve Slyngstad is expected to be named before Slyngstad took over as CEO, he spent 11 recent years and touted the suc- Shares of the company ad- fund new oil and gas develop- letter from Third Point on Mon- during the first half of the year, the central years at Storebrand Asset Management – also cess of its branch expansion, it vanced 0.6% to $132.98 in early ments in the Arctic. day and said it looked forward bank has said. Slyngstad’s previous employer. also struck a cautious tone on a trading in New York. They lost Among other major initiatives to starting a dialogue with the The new CEO will take over a fund that After a transition period, Slyngstad is set to number of challenges it faces. 5.2% this year through Monday. is a national branch expansion, a investor. It said it would provide recently hit a record, but is now navigating leave the reigns to his successor and move to In particular, it pointed to pres- “We expect presentations to push into China, investments in an update on the group’s per- markets hit by the broadening fallout from the London to handle the fund’s first investments sure on credit-card fees, the shift translate to confi dence in the wholesale payments and a deeper formance and strategy when it coronavirus on top of existing strains on trade in renewable energy infrastructure. from active to passive investing merit of investment spending and eff ort to advise high-net-worth delivers results on March 11. and shrinking demand for trad- the achievability of a 17% ROTE,” individuals. Economists war-game pandemic threat to global growth

Bloomberg US stock benchmarks slumping more ber is already far more pessimistic than A March 2016 paper co-authored Frankfurt than 3% on Monday and the S&P 500 the IMF and warned global growth will by former US Treasury Secretary Index dropping the most since Febru- experience a massive drop from 3.5% to Lawrence Summers likened the an- ary 2018. 0.5% and China will shrink in the fi rst nual financial impact of a pandemic he worrying prospect that the For now, central bankers and gov- quarter. flu to the long-term yearly cost of coronavirus outbreak could be- ernments continue to bet that the “The much larger downside risk is global warming. Tcome the fi rst truly disruptive coronavirus will not damage the world that this continues to be a problem,” It calculated that if pandemic deaths pandemic of the globalisation era is re- economy by much, and perhaps allow the former Bundesbank president told were to exceed 700,000 per year, the newing doubts over the stability of the it to enjoy a rapid rebound once the ill- Bloomberg Television in Riyadh, where combined cost to the world economy world economy. ness fades. But that confi dence is being Group of 20 fi nance chiefs hinted at of premature lives lost and illness, With the death toll approaching tested. collective worries at the dangers of the along with lost income, would total 3,000, over 80,000 cases offi cially re- While the International Monetary virus. 0.7% of global income. corded and an outbreak in Italy now Fund currently reckons the virus will How to assess the risk is complicated Oxford Economics’s tally of the im- shutting down the richest chunk of its only force it to knock 0.1 percentage by doubt over how far the coronavirus pact from a global pandemic stemming economy, some economists are begin- point off its 3.3% global growth fore- will travel. from the current outbreak suggests a ning to war game what an untethered cast for 2020, IMF chief economist Gita In an analysis that predates the cur- cost of $1.1tn to global GDP, with both outbreak could mean for global growth. Gopinath said in a Yahoo Finance inter- rent outbreak, the World Bank reckons the US and eurozone economies suf- Oxford Economics Ltd reckons an view that a pandemic declaration would a destructive pandemic could result in fering recessions in the fi rst half of international health crisis could be risk “really downside, dire scenarios.” millions of deaths, and points to how 2020. It describes such a scenario as enough to wipe more than $1tn from The head of the World Health Or- even conservative estimates suggest a “short but very sharp shock on the global gross domestic product. That ganisation called the new cases “deep- such an experience might destroy as world economy.” would be the economic price tag for a ly concerning,” but said the outbreak much as 1% of global GDP. Aside from containment of the dis- spike in workplace absenteeism, lower isn’t yet a pandemic. A disastrous health crisis akin to the ease, one mitigating factor – and a ma- productivity, sliding travel, disrupted Still, the protracted shutdown of northern industrial heartland raise the of Europe too. South Korea’s economy 1918 Spanish fl u, which may have killed jor unknown for economists model- supply chains and reduced trade and Chinese factories that were supposed spectre of much greater death and dis- is being buff ered, with consumer con- as many as 50mn people, could cost 5% ling the outcome – will be the actions investment. to be back online and the spread of the ruption. The virus risks tipping Italy fi dence plunging the most in fi ve years. of global GDP, the Washington-based of central banks and governments to Investors are already nervous, with virus to South Korea, Iran and Italy’s into a recession that could hurt the rest UBS Group AG chairman Axel We- lender said in a 2015 report. cushion the eff ects. Gulf Times 8 Wednesday, February 26, 2020 BUSINESS

KUWAIT KUWAIT OMAN

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

Al-Eid Food Ksc 76.00 2.70 50,000 Oman Packaging 0.27 0.00 - Al-Madar Finance & Invt Co 102.00 2.00 1 Qurain Petrochemical Industr 272.00 -0.73 1,063,009 Oman Oil Marketing Company 0.87 0.00 - Gulf Petroleum Investment 19.80 -4.35 6,190,062 Advanced Technology Co 700.00 0.00 - Oman National Engineering An 0.13 0.00 22,055 Mabanee Co Sakc 849.00 -2.41 1,155,367 Ekttitab Holding Co Sak 14.70 -3.29 410,010 Oman Investment & Finance 0.12 0.00 148,985 Inovest Co Bsc 66.00 -0.30 199,990 Real Estate Trade Centers Co 28.80 0.00 - Oman Intl Marketing 0.52 0.00 - Al-Deera Holding Co 21.20 -0.93 100 Acico Industries Co Kscc 120.00 -4.00 239,796 Oman Flour Mills 0.58 0.00 - Mena Real Estate Co 36.70 3.38 319,886 Kipco Asset Management Co 105.00 -1.87 128,070 Oman Fisheries Co 0.08 -1.23 16,000 Amar Finance & Leasing Co 51.60 1.18 14,009 National Petroleum Services 1,372.00 0.00 - Oman Europe Foods Industries 1.00 0.00 - United Projects For Aviation 500.00 0.00 - Alimtiaz Investment Group 125.00 -0.79 2,916,807 Oman Education & Training In 0.22 0.00 - National Consumer Holding Co 100.00 0.00 - Ras Al Khaimah White Cement 65.00 0.00 - Oman Chromite 3.64 0.00 - QATAR Amwal International Investme 40.00 0.00 - Kuwait Reinsurance Co Ksc 185.00 0.00 - Oman Chlorine 0.32 -5.29 44,997 Equipment Holding Co K.S.C.C 18.80 2.17 970,338 Kuwait & Gulf Link Transport 68.20 0.74 305,270 Oman Ceramic Company 0.42 0.00 - Company Name Lt Price % Chg Volume Arkan Al Kuwait Real Estate 81.90 -1.21 84,210 Humansoft Holding Co Ksc 3,190.00 -1.27 300,425 Oman Cement Co 0.27 -1.45 68,200 Gfh Financial Group Bsc 70.60 -0.84 221,661 Automated Systems Co Kscc 62.10 -9.87 50,000 Oman Cables Industry 0.58 0.00 - Energy House Holding Co Kscp 20.90 -4.13 50,275 Metal & Recycling Co -1.18 38,535 Oman & Emirates Inv(Om)50% 0.00 - Zad Holding Co 14.15 -2.41 1,000 50.40 0.06 Kuwait Co For Process Plant 282.00 -3.09 110,200 Gulf Franchising Holding Co 0.00 - Natl Aluminium Products 0.00 - Widam Food Co 6.25 0.81 37,688 67.50 0.17 Al Maidan Dental Clinic Co K 1,220.00 0.00 - Al-Enma’a Real Estate Co -3.96 724,000 National Real Estate Develop 0.00 - Vodafone Qatar 1.09 -6.28 5,019,590 63.00 5.00 National Shooting Company 9.30 -9.71 755,170 National Mobile Telecommuni -1.93 102,993 National Mineral Water 0.00 - United Development Co 1.22 -1.29 5,923,382 764.00 0.09 Al-Ahleia Insurance Co Sakp 430.00 0.00 800 Sanad Holding Co Kscc 0.00 - National Life & General Insu 0.00 - Salam International Investme 0.41 -5.53 720,823 0.00 0.31 Wethaq Takaful Insurance Co 28.10 -1.40 100 Unicap Investment And Financ -2.00 434,416 National Gas Co 0.43 132,773 Qatar & Oman Investment Co 0.54 -2.18 335,110 49.00 0.24 Salbookh Trading Co Kscp 45.60 -5.00 178,700 Al Salam Group Holding Co -0.33 883,921 National Finance Co 0.00 - Qatar Navigation 5.90 1.32 80,215 30.00 0.14 Aqar Real Estate Investments 77.00 -6.10 137,000 Al Aman Investment Company -1.63 1,579,665 National Detergent Co Saog 0.00 - Qatar National Cement Co 4.47 -2.55 165,047 60.30 0.63 Hayat Communications 53.00 -5.36 54,500 Mashaer Holding Co Ksc -3.07 1,150,029 National Biscuit Industries 0.00 - Qatar National Bank 19.31 0.00 3,038,210 72.50 3.92 Soor Fuel Marketing Co Ksc 125.00 0.00 51,014 Manazel Holding -1.03 491,660 National Bank Of Oman Saog 0.00 115,000 Qatar Islamic Insurance Grou 6.30 -0.63 9,137 38.50 0.20 Tamkeen Holding Co 5.20 0.00 - Tijara And Real Estate Inves -6.00 44,410 Muscat Thread Mills Co 0.00 - Qatar Industrial Manufactur 3.05 -2.56 32,437 47.00 0.08 Alargan International Real 107.00 0.00 - Jazeera Airways Co Ksc -0.40 31,221 Muscat Insurance Co Saog 0.00 366 Qatar International Islamic 8.80 0.02 1,149,828 1,005.00 0.54 Burgan Co For Well Drilling 71.60 0.00 - Commercial Real Estate Co -1.50 1,330,002 Muscat Gases Company Saog 0.00 - Qatari Investors Group 1.57 0.26 1,092,319 98.50 0.18 Kuwait Resorts Co Kscc 58.90 -3.44 644,174 National International Co 0.00 111,209 Muscat Finance 0.00 75,000 Qatar Islamic Bank 16.09 -2.48 2,310,378 81.00 0.06 Oula Fuel Marketing Co 127.00 0.00 140,112 Taameer Real Estate Invest C -3.28 2,199,362 Muscat City Desalination Co 0.00 8,000 Qatar Gas Transport(Nakilat) 2.19 0.00 2,783,963 23.60 0.11 Palms Agro Production Co 54.00 0.00 - Gulf Cement Co -0.20 30,100 Majan Glass Company 0.00 - Qatar General Insurance & Re 2.24 -1.71 44,575 49.30 0.18 Mubarrad Holding Co Ksc 67.80 -1.60 1,005,535 Heavy Engineering And Ship B -1.24 698,994 Majan College 0.00 - Qatar German Co For Medical 0.57 -2.90 2,511,024 397.00 0.18 Shuaiba Industrial Co 127.00 0.00 - National Real Estate Co -0.78 1,967,750 Hsbc Bank Oman 0.00 - Qatar Fuel Qsc 19.74 -0.15 1,289,616 89.30 0.12 Aan Digital Services Co 13.00 -2.99 6,768,714 Al Safat Energy Holding Comp -2.69 503,620 Hotels Management Co Interna 0.00 - Qatar First Bank 1.02 0.00 2,915,888 21.70 1.25 First Takaful Insurance Co 48.00 0.00 - Kuwait National Cinema Co -0.11 1 Gulf Stone 0.00 - Qatar Electricity & Water Co 15.67 0.45 683,816 879.00 0.12 Kuwaiti Syrian Holding Co 30.00 -7.69 1,451,134 Danah Alsafat Foodstuff Co -8.33 1,464,541 Gulf Mushroom Company 0.00 - Qatar Exchange Index Etf 9.60 -1.54 380 13.20 0.31 National Cleaning Company 65.00 -5.25 1,552,475 Independent Petroleum Group 0.00 - Gulf Investments Services 0.00 127,065 Qatar Cinema & Film Distrib 2.21 0.00 - 470.00 0.06 United Real Estate Company 60.40 -0.17 5,030 Kuwait Real Estate Co Ksc -0.98 1,356,266 Gulf Invest. Serv. Pref-Shar 0.00 - Al Rayan Qatar Etf 2.09 -1.18 85,589 101.00 0.11 Agility 795.00 -1.73 1,412,147 Salhia Real Estate Co Ksc -0.89 103,628 Gulf International Chemicals 0.00 - Qatar Insurance Co 3.04 -0.39 3,766,765 444.00 0.10 Kuwait & Middle East Fin Inv 83.60 -5.43 211,965 Gulf Cable & Electrical Ind -2.45 1,122,454 Gulf Hotels (Oman) Co Ltd 0.00 - Qatar Aluminum Manufacturing 0.63 -2.48 7,269,702 478.00 5.32 Fujairah Cement Industries 43.00 -6.52 77,000 Kuwait Finance House -1.49 10,502,239 Global Fin Investment 0.00 - Ooredoo Qpsc 6.53 -1.26 3,790,472 794.00 0.06 Livestock Transport & Tradng 176.00 -1.12 14,000 Gulf North Africa Holding Co -4.72 60,000 Galfar Engineering&Contract -3.03 449,559 National Leasing 0.79 -0.50 1,033,364 58.60 0.06 International Resorts Co 0.00 0.00 - Hilal Cement Co 5.15 850 Galfar Engineering -Prefer 0.00 - Mazaya Qatar Real Estate Dev 0.66 -4.21 1,424,256 100.00 0.39 National Industries Grp Hold 229.00 -3.38 10,534,468 Osoul Investment Kscc -4.09 480,000 Financial Services Co. 0.00 - Mesaieed Petrochemical Holdi 1.80 -2.12 4,909,491 82.00 0.06 Warba Insurance Co 60.10 0.00 - Gulf Insurance Group Ksc -2.31 10,176 Financial Corp/The 0.00 - Al Meera Consumer Goods Co 15.40 0.00 91,967 635.00 0.10 First Dubai Real Estate Deve 48.50 -8.49 3,510,331 Umm Al Qaiwain General Inves 0.00 - Dhofar Tourism 0.00 - Medicare Group 6.55 -0.77 509,804 66.70 0.49 Al Arabi Group Holding Co 198.00 0.00 - Aayan Leasing & Investment -0.22 4,347,171 Dhofar Poultry 0.00 - Mannai Corporation Qsc 3.07 -0.68 269,246 46.40 0.18 Kuwait Hotels Sak 100.00 0.00 - Alrai Media Group Co Ksc 5.43 1,000 Dhofar Intl Development 0.00 - Masraf Al Rayan 4.10 0.69 5,918,305 36.90 0.27 Mobile Telecommunications Co 560.00 -3.28 4,646,224 National Investments Co -5.67 1,010,582 Dhofar Insurance 0.00 - Al Khalij Commercial Bank 1.27 -0.78 48,658 133.00 0.18 Eff ect Real Estate Co 20.50 0.00 - Commercial Facilities Co -0.94 33,000 Dhofar Generating Co Saoc 0.00 - Industries Qatar 8.75 -1.66 2,271,868 210.00 0.20 Tamdeen Real Estate Co Ksc 296.00 -1.66 10,009 Yiaco Medical Co. K.S.C.C 0.00 - Dhofar Fisheries & Food Indu 0.00 - Islamic Holding Group 1.75 -2.72 19,689 66.50 1.28 Al Mudon Intl Real Estate Co 19.00 -4.52 656,039 Dulaqan Real Estate Co 0.00 - Dhofar Cattlefeed 0.00 - Investment Holding Group 0.52 -2.28 2,179,304 350.00 0.12 Kuwait Cement Co Ksc 212.00 -1.40 59,675 Real Estate Asset Management 0.00 1,000 Dhofar Beverages Co 0.00 - Gulf Warehousing Company 4.50 3.42 581,007 90.00 0.26 Sharjah Cement & Indus Devel 42.20 0.00 - Construction Materials Ind 0.00 - Gulf International Services 1.32 -3.16 1,593,597 0.04 Kuwait Portland Cement Co 965.00 -0.82 18,276 Computer Stationery Inds 0.00 - Ezdan Holding Group 0.55 -1.79 24,968,580 0.26 Educational Holding Group 355.00 -1.11 65,400 Bankmuscat Saog -1.75 1,393,909 Doha Insurance Co 1.14 -0.35 11,130 0.45 Bahrain Kuwait Insurance 200.00 0.00 - Bank Nizwa 1.01 2,636,000 Doha Bank Qpsc 2.32 1.31 1,203,288 0.10 Asiya Capital Investments Co 38.00 1.06 42,915 OMAN Bank Dhofar Saog -0.86 250,000 Dlala Holding 0.53 -3.27 367,431 0.12 Kuwait Investment Co 154.00 -4.35 4,142,597 Arabia Falcon Insurance Co 0.00 - Commercial Bank Psqc 4.64 0.87 2,596,217 Company Name Lt Price % Chg Volume 0.10 Burgan Bank 292.00 -2.67 1,815,331 Aloula Co 0.00 - Barwa Real Estate Co 3.20 -2.79 3,026,020 0.08 Kuwait Projects Co Holdings 206.00 0.00 1,008,614 Al-Omaniya Financial Service 0.11 -1.72 170,000 Al Khaleej Takaful Group 1.74 -1.25 374,878 Voltamp Energy Saog 0.14 0.00 519 Al Madina For Finance And In 14.60 2.82 9,428,723 Al-Hassan Engineering Co 0.02 0.00 - Al Ahli Bank 0.73 -2.02 1,051,452 Vision Insurance Saoc 0.11 0.00 - Kuwait Insurance Co 352.00 -0.85 6,976 Al-Fajar Al-Alamia Co 0.75 0.00 - United Power/Energy Co- Pref 1.00 0.00 - Al Masaken Intl Real Estate 39.30 -9.03 60 Al-Anwar Ceramic Tiles Co 0.16 -1.20 105,000 United Power Co Saog 1.94 0.00 - Intl Financial Advisors 56.40 -1.91 1,309,708 Al Suwadi Power 0.06 0.00 175,200 United Finance Co 0.09 0.00 - KUWAIT First Investment Co Kscc 35.20 -4.35 9,827,053 Al Sharqiya Invest Holding 0.09 -1.09 220,654 Ubar Hotels & Resorts 0.13 0.00 - Al Mal Investment Company 12.40 -2.36 213,250 Al Maha Petroleum Products M 0.74 0.00 12,866 Takaful Oman 0.13 0.00 - Company Name Lt Price % Chg Volume Bayan Investment Co Kscc 37.00 -3.65 244,876 Al Maha Ceramics Co Saoc 0.19 -3.11 12,169 Taageer Finance 0.11 0.00 - Egypt Kuwait Holding Co Sae 390.00 0.00 - Al Madina Takaful Co Saoc 0.08 2.53 1,455,060 Sultan Center Food Products 52.50 0.00 81,541 Sweets Of Oman 0.55 0.00 - Coast Investment Development 41.00 -5.09 1,098,050 Al Madina Investment Co 0.03 0.00 82,000 Kuwait Foundry Co Sak 330.00 0.00 30,069 Sohar Power Co 0.06 0.00 - Privatization Holding Compan 48.00 -7.69 272,779 Al Kamil Power Co 0.35 0.00 3,941 Kuwait Financial Centre Sak 109.00 -2.68 4,017,377 Sohar International Bank 0.11 0.00 - Injazzat Real State Company 82.00 2.50 16,716 Al Jazerah Services -Pfd 0.55 0.00 - Ajial Real Estate Entmt 167.00 -4.57 154,002 Smn Power Holding Saog 0.07 0.00 - Kuwait Cable Vision Sak 14.00 0.00 - Al Jazeera Steel Products Co 0.12 -0.81 131,265 Kuwait Finance & Investment 48.00 -9.26 1,736,121 Shell Oman Marketing - Pref 1.05 0.00 - Sanam Real Estate Co Kscc 38.00 0.00 - Al Jazeera Services 0.18 -3.68 794,350 National Industries Co Ksc 166.00 -1.19 20,380 Shell Oman Marketing 1.08 0.00 25 Ithmaar Holding Bsc 22.30 0.00 - Al Izz Islamic Bank 0.06 -1.69 2,642,237 Kuwait Real Estate Holding C 31.40 4.67 425,569 Sharqiyah Desalination Co Sa 0.26 0.00 - Aviation Lease And Finance C 261.00 -1.88 1,268,707 Al Buraimi Hotel 0.88 0.00 - Securities House/The 46.00 -1.50 1,196,161 Sembcorp Salalah Power & Wat 0.14 -3.57 415,270 Arzan Financial Group For Fi 40.00 -4.99 7,087,850 Al Batinah Power 0.06 -1.64 543,806 Boubyan Petrochemicals Co 631.00 -0.47 203,112 Salalah Port Services 0.60 0.00 - Ajwan Gulf Real Estate Co 14.00 0.00 2,911,308 Al Batinah Hotels 1.13 0.00 - Al Ahli Bank Of Kuwait 260.00 -0.76 839,694 Salalah Mills Co 0.50 0.00 - Kuwait Business Town Real Es 42.00 -1.41 2,222,269 Al Batinah Dev & Inv 0.07 0.00 - Ahli United Bank (Almutahed) 335.00 -1.18 922,911 Salalah Beach Resort Saog 1.38 0.00 - Future Kid Entertainment And 109.00 5.83 13,880 Al Anwar Holdings Saog 0.08 -2.41 3,827,115 National Bank Of Kuwait 1,013.00 -1.07 6,236,548 Sahara Hospitality 3.43 0.00 - Specialities Group Holding C 75.00 -6.13 212,700 Al Ahlia Insurance Co Saoc 0.40 0.00 - Commercial Bank Of Kuwait 500.00 0.00 3,752,320 Renaissance Services Saog 0.50 -1.57 72,409 Abyaar Real Eastate Developm 6.30 -4.55 4,420,800 Ahli Bank 0.15 0.00 - Kuwait International Bank 274.00 -0.36 2,214,740 Raysut Cement Co 0.52 0.00 147,799 Dar Al Thuraya Real Estate C 57.90 -7.36 35,089 Acwa Power Barka Saog 0.60 0.00 - Gulf Bank 285.00 -3.39 7,268,311 Phoenix Power Co Saoc 0.07 -1.47 20,000 Kgl Logistics Company Kscc 35.80 -4.02 6,019,684 Abrasives Manufacturing Co S 0.05 0.00 - Al-Massaleh Real Estate Co 38.00 2.98 100 Packaging Co Ltd 2.21 0.00 - Combined Group Contracting 240.00 -3.23 846,033 A’saff a Foods Saog 0.60 0.00 - Al Arabiya Real Estate Co 30.00 -1.64 1,747,230 Ooredoo 0.51 -1.92 439,207 Jiyad Holding Co Ksc 43.60 2.59 1,081,210 0Man Oil Marketing Co-Pref 0.25 0.00 - Kuwait Remal Real Estate Co 20.20 -6.48 787,169 Ominvest 0.33 -0.60 16,600 Warba Capital Holding Co 55.00 0.00 70,110 #N/A Invalid Security 0.00 0.00 - Alkout Industrial Projects C 850.00 0.00 - Oman United Insurance Co 0.34 -2.86 102,321 Gulf Investment House Ksc 58.40 -2.50 47,062 #N/A Invalid Security 0.00 0.00 - Oman Telecommunications Co 0.68 -0.58 195,823 A’ayan Real Estate Co Sak 70.00 -0.57 10,400 Boubyan Bank K.S.C 637.00 -1.39 595,131 Oman Refreshment Co 1.21 0.00 - Investors Holding Group Co.K 11.30 -8.87 13,874,052 Ahli United Bank B.S.C 324.00 -2.11 24,138,719 Oman Qatar Insurance Co 0.09 0.00 - Al-Mazaya Holding Co 61.90 -3.13 1,543,660 Osos Holding Group Co 113.00 -1.74 388,796 LATEST MARKET CLOSING FIGURES

Private equity billions aren’t so bad after all, Germans concede

Bloomberg “bad guys,” says Stefano Sciolla, an Italy-based London lawyer for Latham & Watkins. Compared to a decade ago, they’re far more accepted by business, government and regulators, he said. Once reviled by German politicians, private Still, while private equity firms were sitting on a equity firms are now getting a warmer reception record $1.5tn of unspent capital at the start of this in Europe’s largest economy as industry year, the continuous flow of cash may lead to more heavyweights ink the continent’s biggest buyout pressure to deploy money, and possible higher risk. deal in a decade. Investing money in this environment is probably Advent International and Blackstone Group Inc are the most diff icult thing to do, said Philippe Poletti, among firms planning to address several thousand head of the buyout team at Ardian, which manages of their peers in Berlin at this week’s SuperReturn $96bn in assets. “You have to source deals International forum. Meanwhile, just a few hundred diff erently and that’s why you need deep roots in miles west, the bosses of Thyssenkrupp AG are the countries where you invest,” he said. deciding which of the two buyout groups will The challenge for private equity managers is triumph in a $17bn battle for their crown-jewel deploying all the capital accumulated without elevator business. overpaying and hurting returns. The average The purchase could be one of the biggest global purchase prices for leveraged buyouts are private equity deals this year - and help cement hovering around all-time highs in the US and Germany as a go-to destination for such firms. Europe, according to a recent report from Bain & Buyers such as KKR & Co pumped more than Company. €30bn ($32.6bn) into the nation last year, snapping Firms that may start fundraising this year include up some of its biggest and most well-known names Charterhouse Capital Partners and Nordic Capital, such as Axel Springer SE. according to people familiar with the matter. CVC It’s quite a turnaround from the 2000s, when Franz Partners is raising more than €18bn, a record Muentefering, then-head of Germany’s Social amount for its flagship fund, joining a flurry of Democratic Party, likened the firms to locusts for other investment firms including CVC, EQT AB, stripping companies of value and leaving an empty Apax Partners and BC Partners. husk. Representatives for Charterhouse and Nordic Even the labour unions have come around, declined to comment. supporting Thyssenkrupp selling to private equity The total value of private equity-owned assets across instead of industry rivals, believing financial Europe now account for between 5% to 10% of the investors will be better at securing jobs. And in region’s gross domestic product, Eurazeo SE chief the takeover battle for Germany’s Osram Licht AG, executive off icer Virginie Morgon said in a speech at worker representatives pushed, and eventually the IPEM conference in Cannes in January. failed, to sell to private equity buyers after Private equity names are now commonplace on securing generous job guarantees. almost every large- and mid-cap deal with major “You’re seeing more large transactions where industry players often appearing on both sides of sponsors outbid strategic buyers,” said Simona the ticket. In the battle for Thyssenkrupp’s elevator Maellare, global co-head of financial sponsors at unit, the shortlist of potential buyers comprises a UBS Group AG in London. “For the private equity consortium backed by Blackstone, Carlyle Group Inc industry, that’s an upend and a shift.” and Canada Pension Plan Investment Board, and a The reality is that private equity is one of the second group of Advent International and Cinven. few games in town: it off ers a white knight to The rendezvous in Berlin between so-called yield-chasing investors and for companies eager general partners and their investors who meet in to placate increasingly activist shareholders by back-to-back speed dating sessions may give an selling off divisions. The industry last year raised indication how much longer the bullish deal flow $537.2bn globally, the most since 2008, according will continue. to data compiled by Private Equity International. “SuperReturn has become an important barometer European buyout funds are seeking to raise more for the industry – if it’s booming that’s when risk than $80bn this year, according to data provider is up,” said Jim Strang, chairman for Europe, Preqin Ltd. If they all succeed, that amount would the Middle East and Africa at Hamilton Lane. mark an annual record for the region, the data show. “Private equity is still tiny and off ers a good value Private equity firms are no longer seen as the proposition,” he said. Gulf Times Wednesday, February 26, 2020 9 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 27,631.96 -328.84 Apple Inc 295.49 -0.90 4,301,599 S&P 500 Index 3,193.67 -32.22 American Express Co 124.18 -3.13 362,699 Nasdaq Composite Index 9,104.23 -117.05 Boeing Co/The 311.56 -1.99 385,502 S&P/Tsx Composite Index 17,436.27 -126.47 Caterpillar Inc 130.97 -0.91 133,239 Mexico Bolsa Index 43,472.15 -345.92 Cisco Systems Inc 43.12 -2.00 2,320,433 Brazil Bovespa Stock Idx 113,681.40 -904.80 Chevron Corp 103.07 -1.57 454,862 Ftse 100 Index 7,024.07 -132.76 Walt Disney Co/The 130.26 -2.07 971,386 Cac 40 Index 5,685.88 -105.99 Dow Inc 45.14 -2.38 283,132 Dax Index 12,809.92 -225.32 Goldman Sachs Group Inc 221.21 -1.48 196,573 Ibex 35 Tr 9,284.50 -199.00 Home Depot Inc 241.25 0.65 439,058 Nikkei 225 22,605.41 -781.33 Intl Business Machines Corp 144.98 -0.99 342,592 Japan Topix 1,618.26 -55.74 Intel Corp 60.99 -1.25 2,011,842 Hang Seng Index 26,893.23 +72.35 Johnson & Johnson 145.42 -0.34 507,701 All Ordinaries Indx 6,953.81 -111.60 Jpmorgan Chase & Co 129.64 -1.91 1,055,738 Nzx All Index 1,953.28 -24.32 Coca-Cola Co/The 58.78 0.22 892,349 Bse Sensex 30 Index 40,281.20 -82.03 Mcdonald’s Corp 214.16 0.30 302,130 Nse S&P Cnx Nifty Index 11,797.90 -31.50 3M Co 149.72 -1.86 271,920 Straits Times Index 3,158.24 +16.04 Merck & Co. Inc. 80.76 -0.70 600,786 Karachi All Share Index 27,018.98 -229.32 Microsoft Corp 171.22 0.19 4,321,433 Jakarta Composite Index 5,787.14 -19.91 Nike Inc -Cl B 94.78 -1.18 552,197 Pfizer Inc 34.38 -0.84 2,145,239 Procter & Gamble Co/The 123.04 -0.21 372,135 Travelers Cos Inc/The 133.16 -0.72 109,678 TOKYO Unitedhealth Group Inc 274.16 -1.31 402,401 United Technologies Corp 144.23 -1.60 241,049 Company Name Lt Price % Chg Volume Visa Inc-Class A Shares 194.12 -2.35 1,118,299 Nidec Corp 13,525.00 -3.87 2,243,200 Verizon Communications Inc 58.16 0.29 948,470 Isuzu Motors Ltd 1,084.00 -4.87 3,968,600 Walgreens Boots Alliance Inc 48.51 -1.06 477,817 Unicharm Corp 3,742.00 -2.93 2,268,000 Walmart Inc 116.61 0.25 430,954 Nomura Holdings Inc 532.60 -5.20 25,688,500 Exxon Mobil Corp 55.35 -1.80 2,111,304 Daiichi Sankyo Co Ltd 7,270.00 -5.03 2,424,800 Subaru Corp 2,845.00 -2.08 3,212,300 Sumitomo Realty & Developmen 3,813.00 -1.01 3,075,900 FTSE 100 Ntt Docomo Inc 3,094.00 -1.62 6,176,700 Sumitomo Metal Mining Co Ltd 2,922.50 -4.18 1,912,400 Company Name Lt Price % Chg Volume Orix Corp 1,859.00 -2.72 6,882,600 Asahi Group Holdings Ltd 4,496.00 -6.33 2,056,400 Anglo American Plc 1,947.00 0.22 2,429,564 Keyence Corp 37,280.00 -3.27 908,500 Associated British Foods Plc 2,441.00 -4.01 673,326 Mizuho Financial Group Inc 155.10 -2.51 146,553,800 Admiral Group Plc 2,245.00 -0.75 484,783 Sumitomo Mitsui Trust Holdin 3,887.00 -4.10 1,744,400 Ashtead Group Plc 2,563.00 -1.73 892,423 Japan Tobacco Inc 2,217.50 -2.25 8,008,500 Antofagasta Plc 797.00 -2.35 1,288,205 Sumitomo Electric Industries 1,389.50 -4.37 3,263,100 Auto Trader Group Plc 541.60 -1.28 1,221,301 Daiwa Securities Group Inc 501.50 -6.96 9,633,900 Aviva Plc 381.00 -2.18 6,377,600 Softbank Group Corp 5,460.00 -3.60 20,408,300 Astrazeneca Plc 7,322.00 -1.67 2,005,811 Panasonic Corp 1,137.50 -4.81 12,612,300 Bae Systems Plc 638.60 -3.18 4,012,189 Fujitsu Ltd 12,250.00 -1.88 1,998,400 Barclays Plc 165.92 -2.41 37,202,596 Central Japan Railway Co 19,385.00 -6.31 652,900 British American Tobacco Plc 3,201.50 -1.08 1,625,435 Nitori Holdings Co Ltd 16,110.00 -2.10 887,900 Barratt Developments Plc 807.40 -3.54 2,914,630 Ajinomoto Co Inc 1,904.50 -3.28 2,738,400 Bhp Group Plc 1,544.60 -1.61 2,659,477 A trader passes an LED information wall inside the Frankfurt Stock Exchange. The DAX 30 ended 1.9% down at 12,790.49 Daikin Industries Ltd 15,300.00 -1.00 1,426,200 Berkeley Group Holdings/The 5,150.00 -2.35 251,404 Mitsui Fudosan Co Ltd 2,821.50 -3.51 4,635,700 points yesterday. British Land Co Plc 537.80 -2.43 2,714,237 Ono Pharmaceutical Co Ltd 2,457.00 -4.25 2,038,600 Bunzl Plc 2,059.00 2.90 816,837 Toray Industries Inc 681.60 -3.26 8,234,100 Bp Plc 427.85 -2.37 19,154,034 Bridgestone Corp 3,836.00 -2.98 3,784,800 Burberry Group Plc 1,754.50 -2.26 1,450,060 Sony Corp 7,269.00 -2.81 8,508,500 Bt Group Plc 148.80 -1.63 11,886,971 Astellas Pharma Inc 1,824.00 -4.78 6,356,100 Coca-Cola Hbc Ag-Di 2,668.00 -2.24 443,532 Hoya Corp 10,070.00 -1.03 1,922,100 Carnival Plc 2,635.00 -6.06 902,926 Nippon Steel Corp 1,270.50 -5.85 8,500,000 Centrica Plc 76.08 -0.91 11,545,084 Europe stocks extend Suzuki Motor Corp 4,718.00 -2.42 2,272,700 Compass Group Plc 1,875.00 -0.82 1,351,496 Nippon Telegraph & Telephone 2,734.50 -2.74 6,832,600 Croda International Plc 4,778.00 -2.89 362,412 Jxtg Holdings Inc 464.70 -1.88 18,731,500 Crh Plc 2,756.00 -2.03 1,077,122 Murata Manufacturing Co Ltd 6,138.00 -1.89 5,393,600 Dcc Plc 5,818.00 -2.74 249,286 Kansai Electric Power Co Inc 1,239.00 -2.90 3,908,900 Diageo Plc 2,968.00 -1.46 1,727,251 Denso Corp 4,328.00 -2.79 2,862,600 Direct Line Insurance Group 317.60 -2.22 2,252,455 losses on coronavirus Sompo Holdings Inc 4,218.00 -3.85 1,653,900 Evraz Plc 360.50 -1.93 1,497,764 Daiwa House Industry Co Ltd 3,248.00 -2.67 2,491,900 Experian Plc 2,742.00 -1.22 779,502 Dai-Ichi Life Holdings Inc 1,593.50 -3.07 6,645,400 Easyjet Plc 1,207.50 -3.94 2,873,655 Mazda Motor Corp 836.00 -6.80 6,919,500 Ferguson Plc 7,192.00 -2.02 188,283 Komatsu Ltd 2,241.50 -1.82 7,963,800 Fresnillo Plc 726.40 -1.17 1,183,261 West Japan Railway Co 8,309.00 -4.02 829,000 pandemic scare Glencore Plc 209.65 -0.90 30,814,262 Kao Corp 8,126.00 -3.34 1,830,900 Glaxosmithkline Plc 1,604.20 -1.57 5,236,990 Mitsui & Co Ltd 1,869.00 -3.76 10,296,800 Gvc Holdings Plc 826.60 -0.96 1,176,487 at Mirabaud France commented that term disruption to supply networks Daito Trust Construct Co Ltd 11,895.00 -5.26 493,200 AFP Hikma Pharmaceuticals Plc 1,832.00 -0.57 232,242 Otsuka Holdings Co Ltd 4,288.00 -4.54 1,527,300 the late acceleration in European de- and consumption. Hargreaves Lansdown Plc 1,644.00 -1.88 963,324 London Oriental Land Co Ltd 12,920.00 -3.98 2,012,500 clines was “fairly even,” and added: The World Health Organisation says Halma Plc 2,097.00 -2.24 377,166 Sekisui House Ltd 2,290.00 -2.26 3,216,000 “We have the feeling it was the market the epidemic has peaked in China, Hsbc Holdings Plc 539.60 -2.03 31,322,776 Secom Co Ltd 9,094.00 -4.29 897,200 Hiscox Ltd 1,262.00 -2.77 194,600 uropean stock markets fell fur- (as a whole) that was being sold,” with where it has killed more than 2,600 Tokio Marine Holdings Inc 6,121.00 -2.36 3,040,400 Intl Consolidated Airline-Di 553.00 -2.30 7,807,617 ther yesterday, although steeper the exception of some domestic stocks. people and infected more than 77,000 Aeon Co Ltd 2,227.00 -3.03 5,449,400 Intercontinental Hotels Grou 4,589.00 -3.21 467,984 declines in late trading did not “In the fi rst downward phase that others. Asahi Kasei Corp 986.00 -3.19 5,458,300 E 3I Group Plc 1,115.50 -1.33 837,675 match a major sell-off triggered by we saw, fairly specifi c issues such as But the situation has worsened else- Kirin Holdings Co Ltd 2,120.50 -5.12 4,565,500 Imperial Brands Plc 1,699.40 -0.12 1,219,643 Marubeni Corp 757.50 -3.97 8,566,600 new coronavirus developments a day autos, leisure and luxury” were being where with nearly 2,700 other cases Informa Plc 750.80 -0.56 1,929,592 Mitsubishi Ufj Financial Gro 556.30 -1.77 73,050,800 earlier. dumped the most, he explained. and more than 40 deaths globally. Intertek Group Plc 5,574.00 -1.69 155,163 Mitsubishi Chemical Holdings 773.50 -2.00 7,774,100 London’s FTSE 100 closed 1.9% Yesterday, Tokyo’s main stocks in- The world is “simply not ready” to Itv Plc 124.80 -1.30 6,824,760 Fanuc Corp 19,505.00 -3.34 1,217,000 Johnson Matthey Plc 2,624.00 -0.08 329,172 down at 7,017.88 points, Frankfurt’s dex closed with a 3.3% loss as traders rein in the outbreak, the head of a joint Fast Retailing Co Ltd 56,420.00 -4.15 925,300 Kingfisher Plc 199.65 -3.97 3,774,322 DAX 30 ended 1.9% down at 12,790.49 caught up with global counterparts af- WHO-China mission of experts said Ms&Ad Insurance Group Holdin 3,644.00 -2.77 1,764,700 Land Securities Group Plc 919.00 -2.77 1,052,541 points, Paris’ CAC 40 fi nished 1.9% ter a Japanese public holiday on Mon- yesterday. Kubota Corp 1,532.50 -3.74 4,667,200 Legal & General Group Plc 286.90 -4.62 8,306,250 “You have to be ready to manage this Seven & I Holdings Co Ltd 3,889.00 -1.22 4,049,000 down at 5,679.68 points, Milan’s FTSE day. Lloyds Banking Group Plc 52.19 -1.73 160,940,910 Inpex Corp 1,020.00 -4.63 8,282,400 Mib ended 1.4% down at 23,090.44 Other Asian equity markets recov- at a larger scale... and it has to be done London Stock Exchange Group 8,078.00 -2.67 228,065 Resona Holdings Inc 430.00 -2.49 13,289,000 points and Madrid’s IBEX 35 closed ered a bit meanwhile, with Hong Kong fast,” Bruce Aylward told reporters in Micro Focus International 741.00 -0.95 1,266,818 Fujifilm Holdings Corp 5,567.00 2.83 11,699,600 Geneva. Marks & Spencer Group Plc 177.30 -0.98 4,158,233 2.5% down at 9,250.80 points, while and Seoul posting increases. Yamato Holdings Co Ltd 1,874.00 -2.95 3,209,400 Mondi Plc 1,609.50 -1.62 663,881 the EURO STOXX 50 closed 2.1% down The Dow Jones index was off by 1% IG analyst Joshua Mahony noted Chubu Electric Power Co Inc 1,482.50 -2.50 2,255,400 Melrose Industries Plc 220.80 -2.39 6,315,600 at 3,572.51 points. in midday New York exchanges. that “fears over a potential coronavi- Mitsubishi Estate Co Ltd 2,088.00 -3.78 6,690,600 Wm Morrison Supermarkets 178.90 -2.19 4,047,427 Global equities have been hit by CMC Markets UK analyst David rus contagion throughout Europe is Mitsubishi Heavy Industries 3,650.00 -3.13 1,778,100 National Grid Plc 1,032.60 -1.15 3,237,602 Sysmex Corp 7,313.00 -1.30 652,700 growing concern that the COVID-19 Madden remarked yesterday that “the likely to provide substantial risk-off Nmc Health Plc 886.00 4.46 1,801,536 Shiseido Co Ltd 6,828.00 -1.59 3,465,400 outbreak could derail the global econ- brutal losses endured yesterday coaxed sentiment for days and weeks to come, Next Plc 6,614.00 -2.22 156,510 Shionogi & Co Ltd 6,237.00 -3.45 1,538,400 omy. a few buyers out of the woodwork, but with signifi cant pressure on the Ital- Ocado Group Plc 1,087.50 -0.73 1,346,298 Terumo Corp 3,631.00 -3.81 2,534,700 Paddy Power Betfair Plc 0.00 0.00 - More deaths and a surge in cases in given that equity benchmarks are back ians to stop this outbreak from spread- Tokyo Gas Co Ltd 2,336.50 -2.18 1,749,600 Prudential Plc 1,418.00 -0.18 7,558,273 Iran, Italy, Japan and South Korea has in the red suggests that sentiment is ing throughout the continent”. Among Tokyo Electron Ltd 24,285.00 -2.25 1,425,600 Persimmon Plc 3,104.00 -2.51 847,068 raised the risk of a pandemic. still sour. safe-haven investments favoured by East Japan Railway Co 8,824.00 -2.92 1,888,000 Pearson Plc 581.20 0.28 1,978,851 After rebounding early yesterday, “The coronavirus crisis in Italy investors, the price of gold eased low- Itochu Corp 2,578.50 -2.75 7,683,400 Reckitt Benckiser Group Plc 6,048.00 -3.19 1,026,042 Ana Holdings Inc 3,109.00 -4.22 2,835,600 major European markets took fright remains at the forefront of traders’ er after hitting a seven-year high on Royal Bank Of Scotland Group 193.95 -1.92 10,440,406 Mitsubishi Electric Corp 1,477.50 -5.04 9,398,200 and headed lower once again, with minds,” Madden said. Monday. Royal Dutch Shell Plc-A Shs 1,782.00 -2.18 6,193,273 Sumitomo Mitsui Financial Gr 3,714.00 -1.07 11,868,500 losses increasing as the day wore on to Italy has reported a big jump in cases The yield on 10-year US Treasuries Royal Dutch Shell Plc-B Shs 1,781.80 -2.21 5,277,207 Relx Plc 1,974.00 -1.50 1,834,105 almost 2% by the close. — from six to 283 since Friday — and declined to 1.33%, their lowest level in Rio Tinto Plc 3,923.50 -1.06 1,664,985 A Paris investment manager said now has by far the highest number of more than three years. Rightmove Plc 653.40 -2.16 1,102,197 SENSEX that the latest sell-off appeared to be confi rmed infections in Europe. Oil prices, which tanked by around Rolls-Royce Holdings Plc 612.40 -2.55 2,000,360 broader based than an initial phase of News at the weekend that COV- 3.8% on Monday, slumped again as Rsa Insurance Group Plc 537.60 -1.75 913,211 Company Name Lt Price % Chg Volume selling that had focused on auto, lei- ID-19 was spreading and claiming lives traders mulled whether the global Rentokil Initial Plc 491.00 -2.19 1,627,556 Adani Ports And Special Econ 358.40 -1.06 2,530,137 sure and luxury stocks. far beyond China has focused inves- economy would need much crude in Sainsbury (J) Plc 203.00 -1.88 3,095,872 Asian Paints Ltd 1,826.10 0.39 897,257 the days and weeks to come. Schroders Plc 3,132.00 -2.00 180,777 Portfolio manager Frederic Rozier tor’s minds on the potential for longer- Axis Bank Ltd 728.75 0.45 5,419,596 Sage Group Plc/The 739.60 -2.40 1,202,535 Bajaj Finance Ltd 4,825.95 0.46 959,309 Segro Plc 890.40 -0.69 886,429 Bharti Airtel Ltd 535.25 1.01 9,623,521 Smurfit Kappa Group Plc 2,656.00 -0.60 238,432 Bharti Infratel Ltd 216.30 0.16 12,279,734 HONG KONG HONG KONG Standard Life Aberdeen Plc 300.30 -2.31 5,839,741 Bajaj Auto Ltd 2,947.40 -1.11 527,499 Ds Smith Plc 340.40 -2.35 2,784,129 Bajaj Finserv Ltd 9,525.00 0.61 222,018 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Smiths Group Plc 1,637.00 -1.86 345,495 Bharat Petroleum Corp Ltd 456.75 -1.70 5,522,023 Scottish Mortgage Inv Tr Plc 601.00 -1.39 3,401,023 Ck Hutchison Holdings Ltd -0.44 Cipla Ltd 425.80 -1.01 2,438,218 68.45 3,732,077 Hong Kong & China Gas 14.96 -0.27 21,224,748 Smith & Nephew Plc 1,840.00 -2.65 1,196,715 Hang Lung Properties Ltd 0.56 Coal India Ltd 175.10 0.14 13,534,936 18.04 3,963,056 Bank Of Communications Co-H 5.08 -0.20 26,302,820 Spirax-Sarco Engineering Plc 8,925.00 -1.71 56,593 Ck Infrastructure Holdings L 0.18 Dr. Reddy’s Laboratories 3,086.90 -2.81 1,001,027 54.75 996,521 China Petroleum & Chemical-H 4.09 -0.73 110,667,210 Sse Plc 1,594.50 -3.68 2,139,952 Hengan Intl Group Co Ltd 0.66 Eicher Motors Ltd 17,532.30 -2.33 256,831 60.75 3,470,545 Hong Kong Exchanges & Clear 261.80 0.38 4,172,326 Standard Chartered Plc 587.60 -3.13 2,152,702 China Shenhua Energy Co-H -1.15 Gail India Ltd 114.00 -2.40 11,422,206 13.74 31,363,952 Bank Of China Ltd-H 3.12 -0.64 259,911,885 St James’s Place Plc 1,091.00 -2.85 623,900 Cspc Pharmaceutical Group Lt 0.97 Grasim Industries Ltd 720.40 -0.62 2,272,073 18.66 15,419,418 Hsbc Holdings Plc 56.05 -0.80 47,023,549 Severn Trent Plc 2,585.00 -2.67 320,083 Hang Seng Bank Ltd 0.00 Hcl Technologies Ltd 582.45 -2.13 5,525,575 161.50 1,799,855 Power Assets Holdings Ltd 56.40 -1.66 2,215,485 Tesco Plc 243.50 -2.33 10,623,406 China Resources Land Ltd 0.87 Housing Development Finance 2,302.60 0.45 3,292,922 34.85 11,545,834 Mtr Corp 43.70 -0.46 4,935,404 Tui Ag-Di 737.40 -3.93 1,717,472 Ck Asset Holdings Ltd 0.00 Hdfc Bank Limited 1,200.30 -0.80 6,943,340 49.60 5,030,714 China Overseas Land & Invest 26.60 0.38 30,188,760 Taylor Wimpey Plc 219.00 -2.36 7,810,826 Sino Biopharmaceutical 1.45 Hero Motocorp Ltd 2,184.15 0.00 861,921 11.16 24,920,585 Tencent Holdings Ltd 401.60 2.87 24,081,019 Unilever Plc 4,391.50 -2.04 1,479,118 Henderson Land Development -0.56 Hindalco Industries Ltd 174.45 -2.57 10,694,830 35.60 5,564,144 China Unicom Hong Kong Ltd 6.47 -1.67 49,650,775 United Utilities Group Plc 1,003.00 -2.81 589,809 Aia Group Ltd 0.13 Hindustan Petroleum Corp 211.05 -2.38 3,624,427 77.45 19,757,565 Link Reit 75.00 -0.13 5,060,392 Vodafone Group Plc 147.80 -1.91 30,878,796 Ind & Comm Bk Of China-H -0.37 Hindustan Unilever Ltd 2,233.60 0.83 2,237,493 5.39 232,856,758 Sino Land Co 10.62 0.38 6,869,043 John Wood Group Plc 388.60 -3.81 2,331,584 Want Want China Holdings Ltd 0.66 Icici Bank Ltd 530.95 0.21 14,942,960 6.10 12,558,837 China Resources Power Holdin 9.41 -2.99 13,479,900 Wpp Plc 914.20 -1.10 1,680,888 Sun Hung Kai Properties 0.09 Indiabulls Housing Finance L 324.70 -1.86 35,753,585 111.20 4,373,081 Petrochina Co Ltd-H 3.19 -0.93 183,416,014 Whitbread Plc 4,379.00 -1.62 496,220 New World Development 0.20 Indusind Bank Ltd 1,153.85 -1.40 6,114,855 9.92 14,105,789 Cnooc Ltd 11.56 -1.53 57,607,399 Geely Automobile Holdings Lt 1.62 Infosys Ltd 798.40 0.32 6,996,695 15.04 43,815,446 China Construction Bank-H 6.36 0.32 413,014,189 Swire Pacific Ltd - Cl A -0.21 Indian Oil Corp Ltd 110.45 -0.09 11,212,323 71.25 1,045,351 China Mobile Ltd 64.60 -1.30 20,316,520 Sands China Ltd 0.79 Itc Ltd 201.80 -0.59 15,313,516 38.40 10,409,410 TOKYO Wharf Real Estate Investment 0.00 Jsw Steel Ltd 262.60 1.41 9,928,181 40.20 - Clp Holdings Ltd 0.55 Kotak Mahindra Bank Ltd 1,675.80 -0.15 1,535,555 82.25 5,093,974 Country Garden Holdings Co 0.97 Company Name Lt Price % Chg Volume Larsen & Toubro Ltd 1,242.05 -1.40 3,133,077 10.44 25,218,986 Aac Technologies Holdings In 2.15 Mahindra & Mahindra Ltd 508.95 -0.83 2,105,613 57.00 8,696,298 GCC INDICES Japan Airlines Co Ltd 2,877.50 -4.08 4,174,900 Shenzhou International Group -0.20 Maruti Suzuki India Ltd 6,414.55 -0.86 964,897 101.90 3,367,331 Indices Lt Price Change Recruit Holdings Co Ltd 4,287.00 -4.48 6,593,100 Ping An Insurance Group Co-H 0.06 Ntpc Ltd 110.10 0.36 10,775,289 88.70 28,888,238 Softbank Corp 1,480.50 -1.46 13,533,600 China Mengniu Dairy Co 28.85 0.35 6,587,990 Oil & Natural Gas Corp Ltd 97.55 -0.51 18,255,196 Doha Securities Market 9,703.88 -66.16 Kyocera Corp 7,179.00 -3.66 1,851,200 Sunny Optical Tech 4.14 Power Grid Corp Of India Ltd 186.15 0.03 10,016,681 133.30 12,593,616 Nissan Motor Co Ltd 481.40 -4.50 21,730,400 Boc Hong Kong Holdings Ltd 27.00 0.00 5,307,579 Reliance Industries Ltd 1,416.40 -1.98 12,684,109 Kuwait Stocks Exchange 4,769.33 -60.45 T&D Holdings Inc 1,166.00 -4.43 3,082,200 China Life Insurance Co-H -1.17 State Bank Of India 326.80 1.19 39,050,709 18.58 63,639,287 Toyota Motor Corp 7,574.00 -3.36 8,347,400 Citic Ltd 8.98 -0.77 12,297,921 Sun Pharmaceutical Indus 388.90 -2.25 10,050,971 Oman Stock Market 4,128.69 -27.64 Kddi Corp 3,394.00 -0.91 7,956,200 Galaxy Entertainment Group L 1.30 Tata Steel Ltd 421.30 1.41 14,558,176 54.60 6,562,408 Nitto Denko Corp 5,710.00 -3.55 1,024,900 Wh Group Ltd 8.50 0.83 30,927,020 Hitachi Ltd 4,020.00 -3.78 5,164,100 Tata Consultancy Svcs Ltd 2,156.15 1.93 2,674,567 Takeda Pharmaceutical Co Ltd 4,067.00 -3.83 7,735,900 Tech Mahindra Ltd 822.10 0.24 2,479,975 Jfe Holdings Inc 1,050.00 -5.06 8,059,000 Titan Co Ltd 1,260.10 -1.55 1,358,874 Sumitomo Corp 1,601.50 -2.82 6,738,900 Tata Motors Ltd 149.90 -0.50 52,719,851 Canon Inc 2,724.00 -1.87 6,046,000 Upl Ltd 566.35 -1.20 2,912,488 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The Eisai Co Ltd 8,723.00 -3.05 1,529,900 Ultratech Cement Ltd 4,344.00 -1.16 402,233 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Nintendo Co Ltd 39,230.00 -1.80 1,301,200 Vedanta Ltd 132.70 -0.38 14,590,593 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 13,495.00 -1.89 2,181,900 Wipro Ltd 244.10 -0.04 2,529,786 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Mitsubishi Corp 2,798.50 -2.32 7,482,900 Yes Bank Ltd 35.15 0.57 88,184,594 this data.” Smc Corp 47,390.00 -3.33 258,200 Zee Entertainment Enterprise 251.90 1.12 6,954,412 Gulf Times 12 Wednesday, February 26, 2020 BUSINESS

China pledges Economic discontent brews in cheap credit Malaysia amid power struggle and tax cuts to aid small firms Bloomberg Kuala Lumpur Bloomberg Beijing Malaysia’s political upheaval is jeopardising the economy’s outlook at a time of heightened global risks and brewing discontent among The Chinese government announced a raft of locals about rising living costs. The ruling coali- measures including cheap credit and targeted tax tion collapsed Monday amid a power struggle cuts to small firms and the private sector, the latest between 94-year-old Prime Minister Mahathir move to support the virus-weakened economy. Mohamad and his planned successor. The People’s Bank of China will off er 500bn The political uncertainty is stalling economic yuan ($71.2bn) of relending and rediscounting policy, including a stimulus package that was funding to commercial lenders for loans to small due to be unveiled by Mahathir on February 27 companies and the agricultural sector, according to counter the coronavirus outbreak. to a State Council meeting yesterday, Central China The set of incentives is set to “go ahead” Television reported. on a date set by Mahathir as interim premier, The interest rate of the funding will be lowered by 25 after they were finalised by former Finance basis points, and local commercial lenders can apply Minister Lim Guan Eng on February 23, Lim said for an additional relending quota if needed by end of in a statement. Earlier, former Deputy Trade June, it said. The government will also waive value- Minister Ong Kian Ming cautioned the package added taxes for small firms in Hubei from March to wouldn’t be announced in time. May, and lower the tax rate to 1% from 3% for small “The consequence is that the help that many firms in the rest of the country, it reported. of the most aff ected industries would have The announcement comes on top of targeted gotten under the stimulus package now would easing measures in recent weeks that aim at be indefinitely delayed,” he said yesterday. helping small and private enterprises avoid a credit Even before the virus began disrupting trade crunch as the coronavirus outbreak worsens a and tourism flows and the current political slowing economy. crisis broke out, economic discontent has been The private sector, which accounts more than slowly growing in Malaysia. 60% of gross domestic product and 80% of Locals routinely complain about the rising employment, was hardest hit during the crisis. cost of living, defying off icial data which shows Investors are also expecting more monetary inflation at its lowest level in a decade. stimulus including cutting some banks’ reserve And several recent studies show Malaysians ratios and the benchmark deposit rate. are struggling to make ends meet. Commercial and residential buildings stand illuminated at dawn in this aerial photograph taken above Johor Bahru, Malaysia. Homes The PBoC provides loans to banks at a cheaper “There are a lot of issues that are bugging remain unaff ordable for many Malaysians, with the World Bank estimating that cumulative salaries and wages increased 59% from 2010 price via the so-called re-lending program, a a lot of people, especially the cost of living, to 2018, while house prices surged 87%. monetary tool used to encourage lending to the unemployment, inflation,” said Ahmad Mar- weaker parts of the economy, or entities with tadha Mohamed, a professor of government tax. A weakening in consumer spending could compared to wealthier households – feeling it mediate threats from the coronavirus. poorer credit. at Universiti Utara Malaysia in the northern further undermine economic growth – already most acutely. Economists have been downgrading 2020 Measures announced at yesterday’s meeting state of Kedah. “These are the issues that are at a decade low – and erode public support for The actual cost of living can vary by almost growth forecasts for Malaysia, with Fitch Solu- also include: Rolling over maturing loans and currently not being given enough attention by an incoming government. 70% depending on where a person lives, ac- tions predicting 3.7% expansion, down from a exempting penalties on interest payment delays the government.” The cost of basic needs, unaff ordable homes cording to a World Bank report. Based on its earlier projection of 4.5%. The central bank cut for firms in Hubei or qualified small firms in the rest Many people “see that whenever they go and a lack of job opportunities were Malay- calculations, a household in rural Sabah has to its benchmark rate in January and signalled of China, until the end of June Encouraging state- to the market the prices of goods are going sians’ biggest concerns, replacing corruption earn about 4,300 ringgit a month to reach the more easing to come. “The political uncertainty owned banks to increase SME lending by more up, purchasing power is becoming less, and and power abuse that were top of mind before same standard of living that 3,000 ringgit will bodes poorly for the economy,” said Gareth than 30% from last year; commercial banks to younger people that graduated from university the 2018 election, according to a September buy in rural Kelantan. Leather, an economist at Capital Economics lower interest rates for SME lending from the 2019 couldn’t find proper jobs and are complaining 5 to October 10 survey by EMIR Research, an Homes remain unaff ordable for many Ma- Ltd in London. “Due to the size of its tourism level Policy banks to off er 350bn yuan of special about being unemployed,” he said. independent think-tank based in Kuala Lumpur. laysians, with the World Bank estimating that industry and its close links with Chinese supply credit quotas to private and small firms Lowering Consumer sentiment has been in reces- In a survey published by Elsevier Inc in Novem- cumulative salaries and wages increased 59% chains, Malaysia stands to be one of the coun- electricity prices for high energy-consuming sionary mode through 2019 despite Mahathir ber, 82.3% of respondents said living costs are from 2010 to 2018, while house prices surged tries in the region hit hardest by the measures sectors Expanding postgraduate enrolment and raising minimum wages, rolling out blanket fuel rising, with the poorest 40% – who typically 87%. A new government will need to respond the Chinese government has taken to contain recruitment for local medical care and social subsidies and abolishing a goods and services spend more of their monthly income on food to these pressures as well as address more im- the spread of the coronavirus.” service posts. Gulf Times Wednesday, February 26, 2020 13 BUSINESS

Tesco Cash and tax cuts on table in completes China Hong Kong recession budget exit with $357mn Bloomberg Hong Kong stake sale s the Hong Kong government posts its first deficit in more Reuters Athan 15 years, all eyes will be on London financial secretary Paul Chan’s budget release Wednesday and how he’ll tap cash reserves to stimulate an economy ritain’s biggest retailer under pressure from months of unrest Tesco has completed its and the coronavirus outbreak. Bexit from China with the Anti-government protests drove £275mn ($357mn) sale of its the city into recession last year and joint venture stake to state-run economists now forecast another partner China Resources Hold- slump for 2020, spelling the first ings (CRH). Having struggled to back-to-back annual contractions on crack the Chinese market, Tesco record. established the Gain Land ven- Yet Chan holds a major card that he ture with CRH in 2014, combin- has largely yet to play: A fiscal reserve ing the British group’s 131 stores that stood at HK$1.12tn ($144bn) as of in China with its partner’s al- December 31. most 3,000. One factor that could inform Hong The disposal of its 20% stake Kong’s response is the big packages allows Tesco to further simplify announced elsewhere, such as by ri- and focus the business on core val Singapore, which has pledged to operations, it said yesterday, post its biggest budget deficit since adding that the proceeds will be at least 1997 to combat the impact of used for general corporate pur- the virus. poses. While Hong Kong has historically espoused a conservative fiscal poli- Aft er costly exits from cy, the government has already ear- Japan and the United States marked an extra HK$30bn in this fis- and the sale of its South cal year to help those affected by the Korean business, Tesco virus outbreak. signalled in December a “No government wants to be ac- further retreat from its cused of having done too little,” said once loft y global ambitions Alicia Garcia Herrero, chief Asia Pa- by starting a review of its cific economist at Natixis SA. operations in Thailand So far, the spending measures rolled and Malaysia – its last out to deal with Hong Kong’s down- remaining wholly owned turn have been limited, focusing on businesses in Asia helping low-income families and en- terprises that have been most hurt by Carrie Lam, Hong Kong’s chief executive (second left), speaks during a news conference in Hong Kong. Lam earlier this month pledged an extra HK$30bn in funding, The deal is scheduled to com- the damaged economy. targeting those aff ected by the virus outbreak. plete on February 28. Chan has so far played down talk Shares in Tesco were up 0.7% of cash handouts, though he said the mi-like” shocks to the economy, Chan icit in March 2004 of about HK$40bn taurants – sectors hit hardest by the Oxford Economics in Hong Kong, said at 0816 GMT, extending its gains government wanted to have a “bold” appeared to temper expectations by in the aftermath of the Sars epidemic. downturn. The package is on top of he anticipates the coming budget will over the last year to 12.4%. response. raising concerns about the long-term Chief executive Carrie Lam earlier about HK$35bn in stimulus and live- focus on long-term spending such as “This extra £275mn of ‘for- “The government’s resources are affordability of stimulus measures this month pledged an extra HK$30bn lihood spending announced since the on housing, healthcare and social wel- gotten value’ should be accretive always limited, and this budget can- given the recent surge in government in funding, targeting those affected by start of protests in June. fare “as well as policies to help Hong to most street valuations,” said not fully meet everyone’s require- spending amid the recession. the virus outbreak. The city in January announced a Kong keep its existing competitive- Bernstein analyst Bruno Mon- ments,” Chan said in a blog post Sun- “The projected fiscal deficit for the Specific proposed measures in- HK$10.6bn injection to revitalise the ness in the financial industry and to teyne. day, according to translated text from new fiscal year may be a record high in clude an HK$80,000 one-off subsidy Ocean Park attraction, which is now develop new industries, along with After costly exits from Japan the Chinese-language post. terms of dollar value,” he said. to licensed tour agencies and up to closed because of the epidemic. discussions on linkages with China on and the United States and the In an earlier post describing “tsuna- Hong Kong last posted a budget def- HK$200,000 one-off subsidy to res- Tommy Wu, senior economist with various fronts.” sale of its South Korean busi- ness, Tesco signalled in Decem- ber a further retreat from its once lofty global ambitions by starting a review of its opera- tions in Thailand and Malaysia – its last remaining wholly owned Grab raises $850mn to expand into fi nancial services businesses in Asia. A sale of its operations in Bloomberg Tie-ups between tech startups and under Hironori Kamezawa, who is set to kazu Osawa, a senior offi cial involved in companies have talked occasionally over Thailand and Malaysia would Tokyo banks are becoming more common in the become chief executive offi cer in April. MUFG’s digital transformation, said on a the past few years about a deal, and Grab mean Tesco’s only remaining region, where widespread smartphone “We are excited to be able to pro- call with reporters. president Ming Maa and Gojek co-chief overseas operations, apart from use promises greater access to clients vide customers with next-generation The data sharing would require the executive offi cer Andre Soelistyo met ear- Ireland, would be its central rab, Southeast Asia’s most valu- who have traditionally been neglected by fi nancial services by combining Grab’s customer’s consent, he added. lier this month for the latest discussion, European division, comprising able startup, raised more than the fi nancial system. More on how a fi n- advanced technologies and data man- Under Grab’s deal with Tokyo-based The Information reported, citing people stores in the Czech Republic, G$850mn from Japan’s Mitsubi- tech arena is forming in Southeast Asia agement expertise with our fi nancial TIS, the companies will work together familiar with the matter. While talks are Hungary, Poland and Slovakia. shi UFJ Financial Group Inc and TIS Inc Grab will co-develop fi nancial products knowledge and know-how,” Kamezawa, on digital payments infrastructure in believed to be ongoing, a big roadblock to The Asian exit could be one of to bankroll its expansion into fi nancial and solutions with the two investors, who is currently chief digital transfor- Southeast Asia and Japan to enable better a deal is agreeing on control of the com- the last acts of Tesco CEO Dave services in the region. president Ming Maa said in a statement. mation offi cer, said in the statement. adoption of cashless options, the fi rms bined entity, according to the report. Lewis, who will be succeeded by The sum includes $706mn from The investments demonstrate “their Grab will give “fi rst-choice bank” said in a separate statement. Any deal would also likely face regula- Ken Murphy in October. MUFG, Japan’s largest bank, and $150mn confi dence in Grab’s super-app strat- status to MUFG and its Southeast Asian Meanwhile, Indonesia’s Gojek denied tory hurdles because it would combine Bernstein’s Monteyne expects from TIS, a provider of data centre and egy and our ability to build a sustainable units, including PT Bank Danamon In- a report that it’s discussing a merger with the top two players in the region, re- Tesco to start a £1bn share buy- cloud services, according to joint state- long-term business,” he said. donesia and Bangkok-based Bank of Ay- rival Grab Holdings Inc, a deal that would ducing competition in ride-hailing and back programme in its 2020-21 ments from the companies. For Tokyo-based MUFG, the alliance udhya Pcl. While the startup doesn’t dis- combine the leading ride-hailing busi- newer fi elds like food-delivery and fi - fi nancial year. Backed by SoftBank Group Corp, Grab will deepen its expansion in Southeast close its number of users, it says its app nesses in Southeast Asia. “There are no nance. Grab and Gojek, valued at $14bn “With this transaction and has been expanding into fi nancial serv- Asia, where it has been buying large has been downloaded onto more than plans for any sort of merger and recent and $10bn respectively, used to compete the possible sale of Thailand and ices, building on its ride-hailing, food stakes in banks to make up for weak 166mn mobile devices in the region. media reports regarding discussions of with Uber Technologies Inc before the Malaysia, Tesco’s biggest short- delivery and e-wallet off erings in an ef- growth opportunities at home. The partners will jointly develop a new this nature are not accurate,” Gojek said US company sold its operations in the term concern could be how to fort to become a one-stop shop for on- The lender’s biggest investment in a “scoring model” for lending by using in an e-mailed statement yesterday. region to Grab in 2018, retaining about a effi ciently return cash to share- demand services in Southeast Asia. tech startup also refl ects its digital push data on each other’s customers, Masa- Management teams from the two 27.5% stake. holders,” he said. ‘Rise in public fl oat in PepsiCo adopts stricter, greener rules for palm oil in products Reuters in an Indonesian rainforest home to system by working with peers, suppliers, Kuala Lumpur endangered orangutans had found its civil society and others,” it added. way into the supply chains of major Indofood did not respond to requests for Indian PSUs to 35% may brands including PepsiCo. comment. US food and drink giant PepsiCo Inc said Besides nurturing biodiversity, forests are After becoming a target of high-profile yesterday it would introduce stricter regarded as key to efforts to curb climate campaigns against tropical forest loss, rules for the palm oil used in its goods – change as they store planet-warming global household brands that buy and see action next fi scal’ including a retrospective ban on working carbon. use palm oil agreed in 2010 to ensure with firms linked to deforestation – and RAN, which has highlighted issues with their supplies did not contribute to enforce them for its business partners. palm oil sourcing by major snack food deforestation within a decade. IANS public shareholding is around 50%. Sebi will also In a first for the consumer goods industry, companies since 2013, was involved in But backers of the non-binding New Delhi have to study the global trends on the issue. the tighter policies would apply to shaping PepsiCo’s new policy. commitment, which include PepsiCo, Sebi chairman Ajay Tyagi last year said that companies in joint ventures with PepsiCo While other consumer goods firms have struggled to meet it, as it left around 45% of the listed PSUs have not even met like Indonesian food maker Indofood, have applied similar pledges to their implementation to individual companies ith the 2019-20 fi scal coming to an end the 25% requirement, and they have been given forest experts said. palm oil suppliers, PepsiCo is the first and lacked a clear reporting process, said soon, India’s budget proposal to con- time till August 2020 to achieve it. Palm oil is the world’s most widely used major brand to extend the policy to its a consumer goods body grouping those Wsider raising the public fl oat in listed He was of the view that the short- and long- edible oil, found in everything from business partners and all other firms in firms. companies to 35% may see some action in the next term implications, how much amount will come margarine to breakfast cereals and soap. its partners’ groups, said Robin Averbeck, Brands and major buyers have also fi nancial year, offi cials said yesterday. into the market etc need to be considered. But its production has faced scrutiny in RAN’s agribusiness campaign director. been criticised by industry officials and It needs examination of impacts and trends, Sebi has so far not issued any consultation pa- recent years from green activists and This means any company that makes environmental activists for not buying and also seek stakeholders’ views that takes time, per in this regard. consumers who have blamed it for forest PepsiCo products using palm oil, as well larger amounts of palm oil certified as they said, adding that there could be action on Analysts said any proposal to increase mini- loss, fires and worker exploitation. as plantation firms in the same group green and ethical. this front in the next fi scal. mum public shareholding to 35% is a potential Under PepsiCo’s new policy, the major – anywhere in the world – must also PepsiCo’s stipulation that its palm oil Market regulator Securities and Exchange negative for MNCs and companies with high international buyer of palm oil has comply, she said. suppliers and business partners should Board of India (Sebi) has to submit a report to the promoter holding. Bombay Stock Exchange data strengthened its commitments to PepsiCo’s new policy positions it as have no link to deforestation since the fi nance ministry on the current budget proposal shows there are over 1,400 listed companies with protect, restore and monitor forests and a “front-runner in the industry”, said end of 2015 could be retrospectively to consider raising the current threshold of 25% promoters’ stake of 65%. peatlands. Averbeck. checked through satellite monitoring, to 35%. On the other hand, there are 40 PSUs with pub- It has pledged not to purchase palm PepsiCo said in an e-mailed statement Averbeck said. “Sebi has been asked to examine the implica- lic holding lower than 35%. oil from any direct or indirect supplier its goal was to ensure that “all our She urged PepsiCo to disclose publicly tions of increased current threshold on the fi - Of these, 28 still need to pare down promoter involved in deforestation over the last palm oil is free from deforestation, all grievances linked to its agricultural nancial market, undertake public consultation stake to meet earlier guidelines. four years. new development on peatlands, and supply chain, adding that the roll-out and submit a report to the government,” a fi nance Last year, the government extended the time- The multinational will also launch exploitation of people”. of the new rules should be verified ministry status paper on current budget propos- line for PSUs to maintain the minimum share- initiatives to stop human rights abuses “These updates to our policy and independently. “If they are implemented als said. The 2019-20 budget had said that it was holding norm of 25% to August 2020. among plantation workers on the ground. approach reflect our ongoing and it brings other actors along with the right time to consider increasing the mini- They were earlier allowed to have a minimum A 2019 investigation by green group determination to have a positive them, it could have an enormous impact mum public shareholding in listed companies. public holding of 10%. Sebi had in 2013 set a Rainforest Action Network (RAN) revealed impact through additional actions that on the industry,” she told the Thomson Sebi was asked to consider raising the threshold deadline for all listed companies to adhere to the palm oil from an illegal plantation contribute to a sustainable palm oil Reuters Foundation. to 35%, considering the fact that on an average the minimum shareholding norms. Gulf Times 14 Wednesday, February 26, 2020 BUSINESS Pakistan govt asks IMF to revise revenue target

Internews off icial sources said. For striking staff -level target for the current fiscal year. and upcoming it goes up to Rs50bn will IMF and World Bank is scheduled to take The Spring Meetings of the Boards of Islamabad agreement, both sides were expected to “The IMF has not yet shared its FBR be charged from consumers or it will be place in Washington DC from April 13 to Governors of the International Monetary hold more deliberations in next couple of collection number,” said the off icial absorbed by the government through 19, 2020. Fund (IMF) and the World Bank Group weeks. sources but it is the wish of the FBR that subsidy. It will give opportunity to Pakistan’s (WBG) bring together central bankers, Pakistani authorities have shared data of The IMF insists that the FBR must its target should be revised downward For striking staff level agreement, Adviser to PM on Finance Dr Abdul Hafeez ministers of finance and development, import compression with the International achieve its once revised target from from Rs5.238tn to maximum Rs4.8tn,” said both sides still possessed time-frame for Shaikh and SBP governor Dr Reza Baqir to parliamentarians, private sector execu- Monetary Fund (IMF) and requested to re- Rs5.5tn to Rs5.238tn to ensure eff ective the off icial. narrowing down differences of about break ice if both sides remained unable to tives, representatives from civil society vise downward FBR’s annual tax collection fiscal management of the country. Another stumbling block in the way for more than two weeks period because sort out diff erences over next 6 to 7 weeks organisations and academics to discuss target keeping in view reduction in overall Pakistan and IMF high-ups conducted evolving consensus on prescription of IMF the IMF staff required 4 to 6 weeks period. issues of global concern, including the imports, it was learnt. teleconference twice last week and the is related to hiking tariff of energy utilities period for preparation of report and If it happened then there would be no world economic outlook, poverty eradica- The Federal Board of Revenue (FBR) FBR side shared complete import data on especially electricity and gas. circulating before the Executive Board other solution but to club second and tion, economic development, and aid asks downward revision in its target HS Code basis in order to demonstrate The PTI-led regime has finalised its members for getting approval of second third reviews under $6bn Extended Fund eff ectiveness. from Rs5.238tn to Rs4.8tn in the wake of that imports declined massively including strategy to freeze power tariff till June review and release of third tranche Facility of the IMF programme, making it Also featured are seminars, regional massive decline in imports to the tune of raw material, machinery and intermediary 2020. worth $452mn. even harder for Pakistani authorities to briefings, press conferences, and many around $5.5bn in first seven months of the goods. On gas tariff , the controversy lingers The timely rollover of Chinese loan is fulfil the commitment made with the IMF. other events focused on the global current fiscal year. The overall compression of imports over inclusion of arrears of RLNG as it another stumbling block in the way for So the best available choice is to find economy, international development, and “Pakistan and the IMF team held tele- stood in the range of $5.5bn so such level is not yet decided whether the subsidy evolving staff level agreement. out middle ground for striking staff level the world’s financial system. conference twice last week but so far both of declined imports should be calculated amount of past arrears to the tune of Now the Spring Meetings of Breton agreement maximum by second week of This year’s events will take place in sides could not narrow down diff erences,” to revise downward the tax collection Rs19bn and if take into account existing Wood Institutions (WBIs) such as the March 2020. Washington, DC, April 13-19, 2020.

Apple reopens more Pakistan off ering $100bn than half of its retail stores in China

investment opportunities Meanwhile, Apple’s China Bloomberg Los Angeles iPhone sales dropped in Janu- ary as the coronavirus began to spread, according to an analysis pple Inc is reopening of government data on Monday. more than half of its retail Demand for the product fell in energy sector: Minister Astores in China, trying to 28% compared with the previ- rebound from a sales hit tied to ous month, a bigger decline than the coronavirus. usual for that time of year, ac- Internews As of Monday, 29 of 42 Apple cording to a UBS research note Islamabad stores in the country are open- citing offi cial Chinese data. ing, according to a review of the “February numbers are likely company’s retail websites. to be far worse due to both sup- akistan and China have pledged to Most of these locations are still ply and demand issues related keep the China-Pakistan Econom- operating on shortened hours. to the virus outbreak,” UBS ana- Pic Corridor (CPEC) unaff ected by Some outlets will be open for lyst Timothy Arcuri wrote in the the temporary challenge of coronavirus fewer than 8 hours. note. outbreak as Energy Minister Omar Ayub That compares with a typical Roger McNamee, Elevation Khan pitched for about $100bn worth of 12-hour day, depending on loca- Partners co-founder and author investment opportunities in the coun- tion. of Zucked, discusses the corona- try’s power sector. The Cupertino, California- virus impact on tech and election Speaking at a ceremony – Energy Week based technology giant hasn’t security. – organised by National Electric Power said when the remaining stores Apple recently pulled its reve- Regulatory Authority (Nepra), Ayub said will reopen. nue forecast for the March quar- the country’s energy sector off ered in- However, some Apple web- ter, saying the virus had stunted vestment opportunities of $100bn. sites for specifi c stores show that sales and slowed production. This included about $45bn in power operating hours will return to The company also closed all of generation, $20bn in transmission and normal as early as the end of this its 42 physical stores in mainland $15bn-20bn in distribution. week. China due to the outbreak. It is He said the government was planning Apple’s retail footprint in Chi- beginning to reopen them now. to provide sustainable, aff ordable and na is critical to the company’s The situation is so fl uid that reliable power to the consumers by pro- sales. Apple hasn’t given a new revenue ducing 75% to 80% of electricity from The store closures were one of forecast, Arcuri said. The pace of indigenous resources. two main reasons for Apple say- recovery in the company’s June He said Pakistan was a large and open ing it wouldn’t meet its revenue quarter “is more dependent on the market for all the industries of the world target of at least $63bn in the demand side – which is very hard to come and invest and enjoy high rates of current quarter ending in March. to predict,” the analyst added. return. Apple chief executive of- Overall January smartphone “We are also removing barriers of en- fi cer Tim Cook told employees shipments in China slumped try,” he said and expressed satisfaction last week that retail locations in 37% year over year, according to that several companies were evincing in- China were “starting to reopen, numbers from the China Acad- terest in relocating their manufacturing but we are experiencing a slower emy of Information and Com- facilities of producing wind turbines and return to normal conditions than munications Technology. UBS’s solar panels to Pakistan. we had anticipated.” Arcuri said iPhone sales climbed Khan said the governments was aim- Power transmission lines hang from electricity pylons at the Bin Qasim Power Station II plant in Karachi. Pakistan and China have Earlier on Monday, an analysis 5% in the same period, thanks to ing to increase the share of alternative pledged to keep the China-Pakistan Economic Corridor unaff ected by the temporary challenge of coronavirus outbreak as Energy of offi cial Chinese data showed its online stores and easier com- sources of energy to 20% by 2025 and Minister Omar Ayub Khan pitched for about $100bn worth of investment opportunities in the country’s power sector. that Apple’s China iPhone ship- parisons to the previous holi- 30% by 2030 under the new renewable ments dropped in January as the day period which was marred by energy policy. including industrial, agriculture, science energy projects started during fi rst phase Motorway would begin soon and on com- coronavirus began to spread. trade war tensions. He said several companies were com- and technology and renewable energy of CPEC have been completed. pletion would reduce the travelling time ing forward and showing keen interest and hydro power that would give a new In phase-II the focus was on the pro- from Karachi to Peshawar by half. in relocating their manufacturing facili- momentum to the future development of motion of industrial, agriculture and sci- Nepra chairman Tauseef H Farooqi ties of producing wind turbines and solar Pakistan’s economy. ence and technology sectors, he said. pointed out that over Rs1.9tn circular panels to Pakistan. He said the energy sector of Pakistan Bajwa also pledged that coronavirus debt in the power sector was a serious Speaking on the occasion, Chinese was undergoing transformation and he would not aff ect the pace of work on challenge for the country and the fo- ambassador in Islamabad Yao Jing said was encouraged by focus of the new gov- CPEC projects and the corridor schemes cus of all stakeholders particularly the despite the challenge posed by corona- ernment on providing aff ordable and re- would be completed on time. government should be on the improve- virus, China was determined to take for- liable energy. He said the authorities were taking ment of improvement of the power ward the CPEC initiative and the projects He assured that Chinese government various measures to fully utilise the ben- sector. under the CPEC would not be aff ected by and investors would fully co-operate efi ts of Thar coal for cheap energy pro- He said the regulator was working to this temporary challenge. with Pakistan in this endeavour. duction. protect the interests of the end consum- Jing lauded the overall structural re- CPEC Authority chairman Asim Sal- “We are not talking about coal gasi- ers and at the same taking steps to en- forms taking place in the power sector eem Bajwa said the economic corridor fi cation but talking about coal to liquid courage investment in power sector. and assured the continued co-operation was now a reality and it would now be conversion, we are talking about trans- He said purpose of energy week was to in energy, agriculture, science and tech- taken forward to next phases. portation of coal outside of Thar for come up with recommendations for re- nology sectors. He explained that phase-I of the blending with other coal projects for af- solving the power sector issues. He added that the CPEC-funded ener- project had been completed and the fordable ¬electricity generation”, he said. Ayub agreed that energy sector was af- Customers wearing protective masks look at products on display gy projects would be completed on time. phase-II was currently in progress while Bajwa said the work was also moving fecting every citizen of the country and inside an Apple store in Shanghai. Apple’s China iPhone sales He said the next stage of the CPEC will the approval for the phase-III was in fast on the Western Route of CPEC and the end-consumers were bearing the dropped in January as the coronavirus began to spread, according to focus on co-operation in diverse sectors pipeline. As such, he said the majority of the construction of Hyderabad-Sukkur burden of capacity payments. an analysis of government data on Monday. Hike in sales tax pushes Japan towards recession

Bloomberg criticism of Prime Minister Shinzo Abe’s progress toward reflation, they argue. It’s increasingly clear that the sales Given the residual eff ects from the medical, pension, welfare and elderly care Tokyo decision to carry out the tax increase at a “There’s absolutely no reason to raise tax hit isn’t simply a problem of a single China-US trade war, the fall in production bills that have already been rising at a vulnerable time for the economy. the sales tax. Absolutely no need,” said quarter. Growth figures from previous and struggling wages, more direct fiscal steady clip for decades. After factoring in the early signs of Takuji Aida, chief Japan economist at increases show that the blow to the support was needed at the time of the tax The elderly exercise with wooden Japanese housewife Matsuko Mitsui had impact from the coronavirus, analysts Societe Generale. “It’s described as a tax economy endures. hike, she said. dumbbells in Tokyo. been meaning to buy a new air condition- now believe the economy is falling into increase in preparation of further ageing, In the 10 quarters before each tax move Abe’s stimulus package unveiled in Even with the short-term blows to er for years, but it took the looming sales recession. but the government isn’t a household. and the 10 quarters after the contrac- December, which notably gave scant men- the economy, overall tax revenue has tax hike in October to spur the 64-year-old The downturn comes at a bad time Just because you’ll need money later, tion that followed, annualised quarterly tion to the tax increase, was therefore a mostly increased after each previous hike, to finally make the purchase. for Abe, whose support is already falling doesn’t mean you need that money now.” growth has weakened by an average of case of too little, too late. though the goal of balancing the budget Like many people in the country, she because of scandals and doubts over his The Abe administration had tried to at least 0.5 percentage point after each For its part, the Bank of Japan has looks as elusive as ever. isn’t planning to splash out again anytime government’s handling of the coronavirus learn as much as it could from 2014, move. stayed on the sidelines. So unless strong economic growth soon, leaving the economy teetering on outbreak. when a slightly larger increase in the tax For the 1997 bump, the diff erence was Its support for the economy already can push up corporate and income tax the edge of recession. Three surveys published last week helped snuff out the initial momentum of 2.9 percentage points, though this coin- extends well beyond the measures em- revenues, further sales tax hikes can’t be And that was before the spreading found the approval rating of his cabinet Abenomics. cided with the Asian financial crisis and ployed by other major central banks. ruled out. coronavirus gave yet more cause for had dropped. A higher sales tax then hadn’t meshed Japan’s own banking sector bust-up. BoJ governor Haruhiko Kuroda, himself “If ageing is going to continue and caution. The logic behind the tax increase is well with the goal of sparking higher Abe likely thought he had found a a former finance ministry off icial, has sup- Japan is going to repay its debts, we can- “These days, I really scrutinise the price that the government needs more money prices, higher wages, higher consumption sweet spot for raising the tax ahead of ported the tax hikes of the Abe adminis- not avoid increasing taxes,” said Yasunari tags,” Mitsui said. to provide pensions and health care for and higher growth. an Olympic year that would support the tration. Ueno, chief market economist at Mizuho She isn’t her family’s breadwinner, but the growing legions of elderly like Mitsui, So the government came up with a economy through extra construction But with the negative side eff ects of Securities Co. “There is the matter of tim- she says the heightened price conscious- while reining in the developed world’s range of ideas to support demand and investment and 40mn visitors. the central bank’s stimulus building, the ing, but I support raising the sales tax.” ness she senses in herself and people like largest government debt pile. limit the impact of the tax this time But a global downturn, a super typhoon BoJ would likely prefer the government to For younger workers, that means her is linked to the squeezing of house- The thinking of reflationists is that around. and now the coronavirus have changed step in first if the economy needs further higher taxes loom. hold finances by higher taxes and meagre the policy priority should be to ensure a But those measures, including rebates the narrative. “The timing was terrible,” help. In a country where the working age Momoko Oda, a 31-year-old translator wage gains. strong growth cycle before any pulling on on cashless payments that mystified older said Harumi Taguchi, a Tokyo-based population is set to shrink by more than living in the outskirts of Tokyo, is among Japan saw a 6.3% economic contraction the nation’s purse strings. A tax increase generations, failed to prevent an 11% quar- principal economist at IHS Markit on the a third between 2015 and 2060, there is those who will have to shoulder the costs in the last three months of 2019, fuelling risks sapping the economy and undoing terly slide in consumption after the tax. October hike. a clear need for more revenue to pay for of an ageing society as the years go by. Gulf Times Wednesday, February 26, 2020 15 BUSINESS

In Venice, coronavirus fears thin out the Fat Tuesday crowds

Bloomberg the place Austrian soldiers invented the The Carnival shutdown is the latest reaching 184cm (6 feet) above sea level, groups have asked the government out of their limited supplies. In front Milan Aperol spritz aperitif in the 19th century. blow to Venice, which is arguably pushed by a combination of strong to declare a state of emergency that of the shuttered Basilica San Marco, “We’re usually totally crowded, but the world’s most tourism-dependent tides and powerful winds. would allow their members to postpone typically thronged by 100,000 or more today it’s very, very empty.” locale. The city’s historic centre, with The diff iculties, though, go far beyond mortgage and tax payments that come revellers on Martedi Grasso, Karin and During Carnival, Venice is typically at its On Sunday, as Italian health off icials a population of just 55,000, gets Venice. Tourism last year brought in due during the crisis. Michael Rother stood virtually alone in most packed and wildest. The narrow revealed a spike in coronavirus cases 20mn visitors a year, bringing in some some €40bn across Italy, accounting Luca Zaia, the governor of the Veneto elaborate blue silk dresses illuminated streets teem with revellers, hotels are and the country’s first deaths, Venice €2bn ($2.2bn) annually for lodging for 13% of gross domestic product. region around Venice, banned sporting by a string of LED lights. fully booked, it’s tough to get a table called off the grand finale of Carnival alone. The local trade association Hoteliers in Rome — where the only and cultural events until at least March “If the virus is going to take us, it will do in the better restaurants, and vendors — those last few hours of debauchery said about 40% of reservations at reported coronavirus cases are a pair 1. But as the economic damage piles so with or without carnival costumes,” sell countless masks, gondolier hats, before Lent, the 40 days of deprivation the city’s hotels had been cancelled. of Chinese tourists — say they’re seeing up, he says that with appropriate said Michael, visiting from Munich. and statuettes of the city’s distinctive that precede Easter in the Christian For Tuesday night, Booking.com cancellations. Milan, the financial capital cautionary measures, visitors shouldn’t Around the corner, in one of the tiny Campanile bell tower. This year, it feels calendar. shows availability in over 800 Venice that is also on lockdown, said bookings shy away from coming. lanes leading to the square, Ana like a ghost town. They ordered museums, churches, and hostelries, with 623 of them offering are off by 30%. Florence, already reeling “We took those measures to safeguard Aguilar Franco, from Lisbon, said she As Martedi Grasso — Italian for Mardi schools to close. La Fenice, the opera “super” deals. from cancellations by Chinese tourists citizens and tourists,” Zaia said by has no plans to follow the exodus from Gras, or Fat Tuesday — approached, house, went dark. Waiters stood outside The quarantine —the term was coined unable to leave their country due to the phone from his off ice in the heart of the the city. thousands of tourists abandoned the their restaurants trying to coax the in Venice in the 14th century, when the virus outbreak, is bracing for the worst city. “But Venice is open as usual and “The virus news generated hysteria city on the lagoon, the latest locale to few passersby inside. Just a handful of city’s Doge rulers barred foreigners despite only two reported infections in our businesses aren’t stopping their here, and all the other tourists decided fall victim to concerns over the spread people ambled across the Rialto bridge, from entering the lagoon for 40 days to the region. operations.” to leave,” said Franco, clad in a black of the coronavirus. usually packed with selfie-snapping halt the spread of the plague — comes “We’re seeing the possibility of a As the tourists who remain replaced cape, embroidered floral dress, floppy “There’s no one here,” said Massimo tourists. Passing beneath the bridge, on the heels of devastating flooding total blockade of tourism,” a group of their traditional Carnival masks with red hat, and a gold Carnival mask over Milanese, manager of Caff e Lavena, a the vaporetti—the bus-boats that ply last fall. On November 12, the “acqua seven hospitality trade associations protective surgical face-coverings, a white surgical one. “I have a double Piazza San Marco venue reputed to be the canals—had plenty of vacant seats. alta” caused some €1bn in damage after in Tuscany said in a statement. The the city’s pharmacies quickly ran mask for safety, but I didn’t run away.”

Milaha posts 6% increase in net profit to QR547mn in 2019

Qatar Navigation (Milaha) was attributable to vessel posted a net profit of additions and increased QR547mn in 2019, up 6% utilisation. compared to QR516mn in Despite strong operational 2018. performance, the segment’s The company earned bottom line decreased by operating revenues of QR207mn, due to vessel QR2.4bn in 2019. The impairments, the company earnings per share stood at said last night. QR0.48 in 2019, compared to Milaha Capital’s revenue QR0.45 for 2018. decreased by QR52mn and net The Board of Directors profit by QR79mn, as a result decided to recommend to of lower returns from the held the General Assembly, which for trading portfolio as well will be held on March 22 as reduced dividend income, at the Four Seasons Doha, driven by a reallocation of to distribute a 30% cash capital to increase its stake in dividend of the par value of Nakilat by 6%. a share, equivalent to QR0.3 Milaha Trading’s revenue per share. decreased by QR46mn and Milaha Maritime & Logistics’ bottom line by QR2mn. operating revenue increased On the results, Sheikh Jassim by QR26mn and net profit by bin Hamad bin Jassim Jaber QR21mn. al-Thani, Milaha chairman, Increased profits from said, “I am satisfied with its ports unit and lower the year over year financial container vessel impairments results, and more so with compared to 2018 the foundation we have contributed to improving been putting in place to Dutch Foreign Minister Stef Blok (left) and French Junior Minister for European Aff airs Amelie de Montchalin attend the General Aff airs council in Brussels yesterday. “The time bottom line results by 32%. ensure sustainable growth pressure is immense and the interests are huge,” Blok said about the trade talks with Britain, ahead of the Brussels meeting with counterparts. Milaha Gas & Petrochem’s well into the future. We have operating revenue dropped invested in new technologies, by QR10mn with net profit enhanced our service increasing by QR297mn off erings and capabilities, against the same period and I am confident this will last year. The increase in help Milaha achieve its long profit was the result of “very term strategy objectives.” strong” performance from its Milaha’s President and joint venture and associate CEO, Abdulrahman Essa companies, including its al-Mannai said, “We have EU, UK adopt stances 6% additional stake in made significant progress Nakilat, and lower vessel in improving our operations impairments, mainly related including increasing asset to its tanker fleet. utilisation, disposing of Milaha Off shore’s operating underperforming assets, revenue increased by cross selling services, and QR86mn with operating remaining vigilant and for talks amid unease margins remaining strong. focused on the safety of our The 13% increase in revenue staff and operations.” over Brexit treaty Expedia will cut 3,000 jobs in ‘bloated’ business AFP Johnson’s government, meanwhile, Brussels UK to press for Canada-style trade deal says British ports are not being readied Bloomberg months determining a better to carry out checks on goods between New York way forward,” the e-mail read. Britain and its Northern Ireland terri- “After consulting with leaders he EU and Britain yesterday adopt- Reuters trade in financial services, which are very tory, despite that being a requirement of around the globe, we recognise ed their respective detailed negoti- London important for the UK economy. the withdrawal agreement. Expedia Group Inc said it’s cut- that we have been pursuing Tating rules ahead of talks on future EU chief negotiator Michel Barnier has Irish Foreign Minister Simon Coveney ting thousands of jobs, striving growth in an unhealthy and ties amid European warnings that London said Britain cannot have such a deal warned that “the implementation of to simplify the “bloated or- undisciplined way.” must fi rst implement the treaty easing the Britain will underline its desire for a free from the bloc’s rules and French agreements that have already been struck ganisation” and return the online Barry Diller, Expedia’s chair- terms of Brexit. Canada-style trade deal with the EU president Emmanuel Macron said on are the test of good faith and trust — and travel giant to more disciplined man, foreshadowed the job cuts The talks are to begin next week under a when formal talks start next month, Saturday it was not clear whether an without good faith and trust, building a growth. earlier this month during an cloud of evaporating trust and incompat- Prime Minister Boris Johnson’s Downing agreement can be reached, as Johnson future relationship is not going to be easy”. The staff reductions will earnings conference call. ible demands. Street off ice said. wants, by the end of the year. Germany’s EU minister, Michael Roth, affect about 3,000 employ- “We were a bloated organisa- They are expected to go to the end of Ministers will meet tomorrow to sign off Johnson’s off ice said there were not was equally blunt. “My message is crystal ees, including 500 people in tion,” Diller said on the February the year, corresponding to a transition pe- on the formal trade mandate document expected to be any surprises in the clear to our friends in London: keep your Expedia’s Seattle-based head- 13 call. Over the last few years riod set out under the Brexit withdrawal which will frame Britain’s negotiating mandate document, which aims for a promises.” quarters, said Josh deBerge, Expedia has been chasing agreement struck late 2019 that London aims, before it is published on Thursday. future relationship based on friendly co- Under the withdrawal agreement, a a company spokesman. The growth in the intensely competi- has ruled out extending. “The UK has made clear a number of operation between sovereign equals. protocol on Northern Ireland is to remain workers will begin to be noti- tive travel sector by adding em- Britain left the EU at the end of Janu- times, and will reiterate, its desire for a British ministers were united in their in place unless a devolved local govern- fied this week. Expedia didn’t ployees and layers of complexity ary under that treaty and will be regard- Canada-style deal,” Downing Street said objectives, it said, adding: “this is in ment decides otherwise years down the tie the job cuts to effects of the “until frankly very few people ed as a non-EU “third country” in the in a statement. contrast to the process of agreeing the line. coronavirus, which executives could figure out what the hell negotiations even though it still trades The EU-Canada deal, which came into EU’s mandate, which so far looks to be Until then, the British territory is es- earlier this month said added they were supposed to do dur- like an EU member until the end of De- force provisionally in 2017, removes most hamstrung by indecision and delay due sentially to remain under EU single mar- “uncertainty” to the company’s ing the day,” he said. cember. tariff s on goods traded between the to the competing interests of diff erent ket rules, with a border for goods down profit outlook. At the time, Diller said he was EU ministers in Brussels signed off on a two countries but does little to facilitate member states.” the Irish Sea. “Today, Expedia Group an- targeting $300mn to $500mn in mandate emphasising that Britain has to But that is anathema to Johnson, who nounced our intent to simplify run rate cost-savings in 2020. mirror European standards if it wants its fears Northern Ireland could become de how we do business,” deBerge “I am confident that simplify- goods to continue to have tariff -free ac- Monday, he said, with a second round cially in the UK. Britain has nonetheless facto a part of Ireland, an EU member said Monday in a statement. ing our business and clarifying cess to the huge single market. pencilled in to take place in London later signalled it is willing to walk away rath- state. He has repeatedly insisted that “This includes stopping certain our focus by making these British ministers in London within in March. er than obey EU diktats, saying doing there will be no checks on goods going projects and activities, reducing difficult changes, our teams hours approved their own approach. The outcome of the talks is uncertain. things its own way was the whole point between Britain and Northern Ireland. use of vendors and contractors can get back to working on Prime Minister Boris Johnson’s spokes- “The time pressure is immense and the of Brexit. Last weekend, the Sunday Times quot- and eliminating approximately the projects and priorities man said its goal “is to ensure we restore interests are huge,” Dutch Foreign Min- The EU, however, fears that without a ed an unnamed “senior source” in his gov- 12% of our direct workforce.” that make the most sense for our economic and political independence ister Stef Blok said ahead of the Brussels “level playing fi eld”, the UK might seek a ernment saying the British negotiating Expedia announced the job cuts us, our customers and our part- on January 1, 2021” — meaning Britain in- meeting with counterparts. competitive edge over Europe by under- team was looking at ways aimed at “not in an e-mail to its global work- ners,” Diller said on Monday in tends to set its own norms irrespective of “It’s a very complicated treaty. It will cutting its tax, environmental and labour obeying the Northern Ireland protocol”. force, which numbered 25,400 a statement. EU rules. be very hard work, a tough road ahead,” standards. For the future relationship, Britain is ask- as of December 31. In December, Expedia chief ex- “At the end of this year we will be leav- he said. France in particular hardened the EU ing for a similar free trade agreement to “Following our disappointing ecutive off icer Mark Okerstrom ing the (EU’s) single market and customs Without an accord on the new re- position, aiming to heighten trade friction the one Canada has with the EU, rejecting 2019 business performance and Chief Financial Off icer Alan union and taking back control of our own lationship, trade between the EU and the more the UK diverges from EU stand- Europe’s arguments that the UK’s prox- and our change in senior-most Pickerill were ousted after clash- laws and our own trade,” the spokesman Britain would revert to a bare-bones ar- ards, as well as putting access for EU fi sh- imity, size and economic interconnected- management, the travel leader- ing with the board over a disap- said. rangement under WTO rules, causing ing boats to British waters at the heart of ness with the continent require stricter ship team has spent the last few pointing growth outlook. Talks will begin in Brussels on next economic pain on both sides, but espe- the mandate. controls. Wednesday, February 26, 2020 GULF TIMES BUSINESS

2 graduates of QF tech hub’s XLR8 programme to launch their ventures

Two startups that excelled in the eighth suppliers and manage price variations in cycle of Qatar Foundation tech hub’s XLR8 the traditional way, saving both time and Programme, ClassTap and Partix, are set to money. commercially launch their ventures in the The four-member team is Ali Abbas local market next month. Mohamed, Mohamed Khodadady, and ClassTap has developed a digital platform Mohamed Hamid Elfadl, all mobile ap- off ering fitness fans easy access to classes plication developers, and Fahad al-Naimi, and day passes to gyms around Qatar a chemical engineering graduate of Qatar through a smartphone application and University and a project manager at Qatar under a single membership, while Partix Shell. will launch an online platform that aims According to team Partix, “There were a to digitise the automotive spare-parts large number of mentors to support the business. teams, and during the programme, we had ClassTap’s mission was to develop a digital to pivot the idea more than once.” product that motivates people in Qatar to The XLR8 programme has three main lead healthier lifestyles by inspiring, con- modules: product-market fit, customer necting, and introducing them to new ex- traction, and attracting and pitching periences. The team recognised people’s to investors. Partix cited the ‘customer diff iculty with committing to one specific The Patrix team consists of Ali Abbas Mohamed, Mohamed Khodadady, and validation’ workshop as the most inter- routine, which becomes demotivating. ClassTap off icials are co-founders Bashar Hudhud, the CEO and a seasoned Mohamed Hamid Elfadl, all mobile application developers, and Fahad al-Naimi, esting and important: “It asked us to live To address the issue, ClassTap introduced entrepreneur, as well as chief creative off icer Rana Majeed, an entrepreneur a chemical engineering graduate of Qatar University and a project manager at and experience our customers’ lives, all the workouts and fitness classes with two master’s degrees from IE Business School in Spain. Qatar Shell. speak their language, and witness their available across Qatar via one app and challenges.” membership, thereby giving them much- School in Spain. The pair recalls how regular feedback as vital to all aspects to always look to the market: “Whether team Partix described how the XLR8 pro- The team advises future XLR8 participants needed flexibility. As many as 30 gyms ClassTap was just an idea in September of their start-up development and future this is market demand or supply, competi- gramme helped them develop their idea to use their interaction with their competi- have already signed up to ClassTap, thus 2019 during XLR8, a programme at Qatar strategy. tors, or the trends and customer habits of an online platform that aims to digitise tors as motivation to work harder. “Have reflecting the app’s future commercial Science & Technology Park (QSTP), part of As a sign of its potential commercial that are constantly changing.” the automotive spare parts business. patience and remember that, without potential. Qatar Foundation Research, Development impact, ClassTap was immediately ap- As for XLR8’s impact, they said: “The net- Via a single app, users will be able to im- good teamwork, the idea will die.” Heading up ClassTap are co-founders and Innovation. proached by Qatar SportsTech, a Start-up work we currently have, thanks to QSTP, mediately access a comprehensive list of The ninth cycle of XLR8 kicked off on Feb- Bashar Hudhud, the CEO and a seasoned They credit the hands-on programme with Bootcamp branch, to join their pro- has been amazing in helping us achieve relevant suppliers in the area, along with ruary 9, welcoming 19 potential entrepre- entrepreneur, as well as chief creative helping develop it into a market-viable gramme – an off er that includes financial our goals and making ClassTap a winning their prices, allowing motorists to obtain neurs to the programme. More informa- off icer Rana Majeed, an entrepreneur with product. They praise their dedicated men- investment. XLR8 project.” the spare parts they need at a price that tion on XLR8 is available at the website two master’s degrees from IE Business tors and advisers, citing their high-quality, ClassTap advises future XLR8 participants Shortlisted as a finalist in the eighth cycle, suits them, rather than having to hunt for https://qstp.org.qa/qstp-xlr8/

Qatar First Bank ‘successfully exits’ Islamic fi nance in Qatar is Shariah-compliant aviation deal

Qatar First Bank has announced the “successful exit” of a Shariah-compliant witnessing ‘unprecedented’ aviation deal, along with its investors, through the sale of two Boeing 737-900ER aircraft. This comes in line with the bank strategy and directive of off ering international co- investment opportunities to its clients and to expansion, says al-Kuwari the Qatari market. The two aircraft were on a seven-year long-term Shariah-compliant lease contract By Santhosh V Perumal to Indonesia’s Lion Air. This is the first deal Business Reporter of its kind that the bank is undertaking in the field of aviation through the global investment management platform that slamic fi nance, which is a key the bank launched and attracts increased economic pillar of Qatar, has opportunities for its clients and investors. Ibeen witnessing an “unprec- The investment product has achieved for edented” expansion and the assets its holders a cash dividend of 9% annually, within the sector saw a compound- whereby the profits are distributed every ed annual growth of 8% since 2015 three months, while the internal return on to reach $129bn in the fi rst half of investment of the product is about 12%, QFB 2019, according to HE Minister of noted. Commerce and Industry Ali bin On the success of the exit deals, QFB deputy Ahmed al-Kuwari. CEO Ayman Zaidan said, “We are very The Islamic fi nancial assets con- pleased to announce the successful exit stitute 33% of Qatar’s total fi nan- of these deals further strengthening the cial system assets, he told the sixth bank’s Investment off erings to its clients Doha Islamic Finance forum, or- and solidifying the bank’s strategy and risk- ganised by Bait Al Mashura Finan- sharing operating model. cial Consultants. “The bank will continue to build on this He said Islamic banks in Qatar are success through off ering innovative actively continuing their work to financial solutions and Shariah-compliant take advantage of this technology to investments to the Qatari market. Further, develop and expand their activities it is noteworthy the increasing success of and enhance their capabilities to investment structured products off ered by compete in global fi nancial markets the bank to meet the increasing need of its and improve their mechanisms for investors looking for innovative investment cross-border transactions, besides opportunities. developing money market products HE al-Kuwari highlights unprecedented growth in Islamic finance in Qatar. “The products of the bank meet with great and sukuk and support in fi nancing acceptance from potential investors as infrastructure projects. to the “continued expansion” of ising industries and booming sec- pic Committee, said Doha seeks to that accommodates 50,000 spec- it provides investment opportunities in The fi nancial sector in general the country’s economy, which is tors, particularly the Islamic fi - become a global capital for sports tators, in addition to the sports business sectors characterised by relative and Islamic fi nance in particular re- expected to “remain buoyant” as its nance sector. and that the country’s investment dome, which is considered the larg- stability, as they provide attractive and mains one of the main pillars of the natural gas exports persist. In early 2019, a total of four Is- in sports also contributed to the est multi-purpose hall in the world expected returns in the medium and long national economy as the country Highlighting that Qatar was able lamic banks were licensed by the promotion of Qatar, where many with 13 stadiums. term, and with a proportionate annual profit further strengthens its economic to take advantage of all its avail- Qatar Central Bank, between them international clubs such as Bayern Barwa Bank group chairman and rate paid to clients on a quarterly basis.” diversifi cation strategy. able resources and direct all its ef- accounting for around 25% of Qa- Munich and Paris Saint Germain managing director Sheikh Moham- QFB is the first independent Shariah- A recent report from Oxford forts in diversifying its economy, tar’s banking sector assets, accord- hold training camps at the Aspire ed bin Hamad bin Jassim al-Thani compliant bank authorised by the QFC Business Group found that growth the minister discussed about the ing to the Ministry of Finance. Zone that includes 15 soccer fi elds, stressed on the role of Islamic fi - Regulatory Authority (QFCRA) and a listed prospects of Qatar’s Islamic fi nan- promising opportunities that are Jassim bin Rashid al-Buainain, a running track of 14km long, a nancing tools in raising the effi - entity on the Qatar Stock Exchange. cial services sector are closely tied still available within many prom- secretary general of Qatar Olym- gymnasium, and Khalifa Stadium ciency of global markets.

Beema board recommends 10% dividends to shareholders

The board of directors of Damaan Islamic Insurance Com- pany (Beema) has recommended to distribute 7% to policy holders for whom no claims have been registered, and to approve divi- dends distribution to sharehold- ers at 10% of the nominal value of the share. During Beema’s Annual General Assembly Meeting yesterday, the board also recommended the transfer of QR50mn from the retained earnings account of shareholders to the statutory reserve, in addition to what is A view of Beema’s Annual General Assembly Meeting in Doha transferred annually so that yesterday. the legal reserve amounts to QR154.18mn. Qatar Takaful insurance market ment to the company. Also, the The year 2019 was a real test and penetrate larger market board extended its thanks to for the strength and solidity of share. In addition, the company’s the employees of the Ministry Beema to ensure that it main- rating (BAA1) by Moodys has of Commerce and Industry and tains its growth rates, develops helped it to increase its business Qatar Central Bank for their its performance, and prepares and gain the trust of its custom- sincere cooperation, and the for a new phase of success and ers. Shariah Supervisory Authority of growth after completing its 10th The board expressed its the company for their guidance, year. gratitude and appreciation to and to the shareholders and cus- Beema launched during the His Highness the Amir Sheikh tomers of the company for their year more insurance products Tamim bin Hamad al-Thani high confidence and continued through the electronic windows, and HE the Prime Minister and support, and to the company’s and thanks to its policyhold- Interior Minister Sheikh Khalid management and employees ers and customers who helped bin Khalifa bin Abdulaziz al-Thani for their eff orts and dedication Beema to retain the leadership in for their support and encourage- to work.