TRADE DEFICIT NARROWS : Page 4 US weekly jobless claims drop; layoff s tumble to 24-year low

Friday, September 3, 2021 Muharram 26, 1443 AH INVESTORS CAUTIOUS: Page 2 Asia markets mixed GULF TIMES as recovery fears BUSINESS off set optimism

Qatar intensifies efforts to establish sustainable trade and investment deals with Ukraine

Buoyed by the 60% surge in trade volume Qatar and Ukraine in the fields such as between Qatar and Ukraine in 2020 industry, agriculture, transportation, despite the pandemic challenges, Doha health, education, science, technology has intensified eff orts to establish “sustain- and culture. able” trade and investment partnerships On the sidelines of the meeting, al- between the private sectors of both the Kuwari signed a protocol amending the countries. agreement between the governments of This was moved by HE Ali bin Ahmed Qatar and Ukraine on the Avoidance of al-Kuwari, Minister of Commerce and Double Taxation and the Prevention of Industry and Acting Minister of Finance, at Fiscal Evasion with respect to taxes on the second session of the Qatari-Ukrainian income. Joint Committee for Economic, Commer- The minister witnessed signing of two cial and Technical Co-operation, which memoranda of understanding between took place in the Ukrainian capital Kiev Widam Food and Baladna on the one side from August 31 until yesterday. and the Ministry of Agrarian Policy and “Sustainable” trade and investment Food of Ukraine on the other. partnerships would contribute to further- From the Qatari side, the MoU were ing relations to the level of a “comprehen- signed by Mohamed Badr al-Sada, chair- sive strategic partnership”, as per clear man of Widam Food and vice chairman of frameworks that serve the development Baladna. trends of Qatar and Ukraine, he said, high- The meeting was attended by lighting that at present, 54 joint capital representatives from several govern- Qatari-Ukrainian companies are operating HE al-Kuwari signs a protocol with the Ukrainian representative regarding ment agencies, including the Ministry of in Qatar’s economy. double taxation avoidance. Foreign Aff airs, Ministry of Public Health, The two sides agreed to take the neces- Ministry of Education and Higher Educa- sary steps to move forward in consolidat- made by the Ukrainian government to and logistical operations and services. HE al-Kuwari, along with Ukrainian off icial, at one of the agreements signing. tion, Ministry of Culture and Sports, Qatar ing trade and investment co-operation provide promising investment opportuni- On the domestic economy, al-Kuwari Chamber, Qatar Airways, Qatar Develop- between the two countries, with the aim of ties in several vital sectors, particularly the said Qatar had managed in recent years to growth of about 3% and 4.1% in 2021 and committee’s first session, besides touch- ment Bank, Free Zones Authority, General increasing the volume of transactions and maritime sector, according to al-Kuwari. make “remarkable” progress in the proc- 2022, respectively, despite the repercus- ing on current projects and plans for ex- Tax Authority, the Investment Promo- facilitating the flow of goods, services, and Qatar’s QTerminals has been awarded a ess to attain balanced economic growth. sions of the Covid-19 pandemic. panding them, as well as several issues tion Agency of Qatar, Qatar Investment investments. contract to develop, manage and operate In this regard, he quoted the World The two sides discussed the progress related to enhancing economic, trade Authority, Hassad Food, Widam Food, Qatar was interested in the eff orts Port Olvia which will support navigational Bank report that forecast promising made at the recommendations of the and investment co-operation between Baladna and Nebras Power.

Middle Eastern airlines post 74.5% passenger demand Qatari-Turkish trade amounts to drop in July compared to July 2019: IATA nearly $1.9bn in 2020: Al-Khater Middle Eastern airlines posted a 74.5% passenger demand drop in July compared to July 2019, IATA said in its latest report. Capacity declined 59.5%, and load factor HE the Undersecretary at the report had confi rmed the promis- deteriorated 30.1 percentage points to 51.3%. Ministry of Commerce and ing growth prospects for the Qatari IATA said both international and domestic travel de- Industry, Sultan bin Rashid economy (by about 3% and 4.1% in mand showed significant momentum in July compared al-Khater was participating in 2021 and 2022 respectively) despite to June, but demand remained far below pre-pandemic the opening session of the ‘Izmir the repercussions of the Covid-19 levels. Extensive government-imposed travel restrictions Business Days’ forum, taking pandemic. continue to delay recovery in international markets, it place virtually Al-Khater affi rmed Qatar’s par- said. Total demand for air travel in July 2021 (measured ticipation in the 2021 edition of the in revenue passenger kilometres or RPKs) was down he volume of Qatari-Turkish forum presented an ideal oppor- 53.1% compared to July 2019. This is a “significant im- trade amounted to about tunity to underline Qatar’s com- provement” from June when demand was 60% below T$1.9bn in 2020, despite the mitment, and its fi rm orientation June 2019 levels. economic repercussions of the Cov- towards enhancing international International passenger demand in July was 73.6% id-19 pandemic on international co-operation, according to the below July 2019, bettering the 80.9% decline recorded in trade, said HE the Undersecretary at highest standards of sustainability, June 2021 versus two years ago. the Ministry of Commerce and In- in an endeavour to ensure the well- All regions showed improvement and North Ameri- dustry, Sultan bin Rashid al-Khater. being of all peoples and fulfi l their can airlines posted the smallest decline in international He was participating in the open- aspirations for progress, develop- RPKs (July traff ic data from Africa was not available). ing session of the ‘Izmir Business ment, and prosperity. Total domestic demand was down 15.6% versus Days’ forum, taking place virtually Over the past nine decades, the pre-crisis levels (July 2019), compared to the 22.1% on September 2 and 3 on the side- Izmir International Fair has suc- decline recorded in June over June 2019. Russia posted lines of the 90th edition of the Izmir ceeded in becoming an important the best result for another month, with RPKs up 28.9% International Fair. and diverse platform for exchanging vs. July 2019. Willie Walsh, IATA’s Director General said, At the investment level, al- views on global and domestic trends “July results reflect people’s eagerness to travel during Khater pointed out that some 636 in trade and policymaking, as well as the Northern Hemisphere summer. Domestic traff ic Qatari-Turkish joint companies for forging new partnerships. was back to 85% of pre-crisis levels, but international were operating in Qatar, in trade, This year, the fair hosts the sev- demand has only recovered just over a quarter of 2019 contracting, and information tech- enth edition of Izmir Business Days, volumes. The problem is border control measures. nology sectors. themed, ‘Trade and logistics: cir- Government decisions are not being driven by data, Qatar is also home to some 38 cular economy and green deal per- particularly with respect to the eff icacy of vaccines. wholly-owned Turkish companies, spective’. “People travelled where they could, and that was operating in the construction and The forum includes about six primarily in domestic markets. A recovery of inter- industrial sectors. panel discussions, featuring over 30 national travel needs governments to restore the During his speech al-Khater speakers, including ministers, sen- freedom to travel. At a minimum, vaccinated travellers praised the distinguished bond of ior offi cials and other experts from should not face restrictions. That would go a long way fraternity between Qatar and Tur- various countries. to reconnecting the world and reviving the travel and key. This relationship has been es- The sessions address a number of tourism sectors.” He said, “As the Northern Hemisphere tablished under the wise leadership topics, including the future of global summer travel season draws to a close it is clear that too of His Highness the Amir, Sheikh HE the Undersecretary at the Ministry of Commerce and Industry, Sultan bin Rashid al-Khater, attending the trade in the post-Covid era under many governments missed the opportunity to apply Tamim bin Hamad al-Thani, and opening session of the ‘Izmir Business Days’ forum yesterday. recent trends; the circular economy a risk-based approach to managing their borders. The Recep Tayyip Erdogan, President of and the European Union’s ‘Green growing number of fully vaccinated travellers and the the Republic of Turkey. path of steady economic growth, vated the private sector to contrib- the Second National Development Deal’; the fate of the agricultural and prevalence of testing provided the chance to restore in- With regard to the Qatari econ- thanks to the eff ective policies es- ute to the process of achieving eco- Strategy 2018-2022. food sectors during the climate cri- ternational connectivity and bring much needed relief to omy, al-Khater stressed that Qatar tablished by its wise leadership. nomic diversifi cation, in line with In this regard, al-Khater pointed sis; as well as marine transportation economies that are heavily reliant on travel and tourism. had succeeded in continuing on its These policies supported and moti- the Qatar National Vision 2030, and out that the World Bank’s latest and new logistics strategies. Gulf Times 2 Friday, September 3, 2021 BUSINESS

QSE MARKET WATCH Bond market set to test Powell push to delink Company Name Lt Price % Chg Volume

Zad Holding Co 15.80 0.00 - Widam Food Co 4.16 2.82 830,905 Vodafone Qatar 1.60 0.63 1,256,880 United Development Co 1.52 -0.07 4,855,202 Salam International Investme 0.94 -0.63 8,762,452 hikes from taper Qatar & Oman Investment Co 0.95 0.42 3,373,994 Qatar Navigation 7.50 0.03 225,236 Qatar National Cement Co 5.00 0.66 434 Bloomberg for the Fed, regarding taper- ing and rate hikes, “to try to Qatar National Bank 18.94 -1.15 3,088,928 New York Qlm Life & Medical Insurance separate them, but I don’t think 4.83 0.08 84,961 Qatar Islamic Insurance Grou 7.90 -0.38 10,500 they’ll be ultimately successful Qatar Industrial Manufactur 2.95 1.66 197,192 ond investors may not in separating them.” Qatar International Islamic 9.67 0.44 361,731 wait long to start push- Even some Fed offi cials are Qatari Investors Group 2.56 -1.50 727,455 ing back against Federal wary of being able to disentan- Qatar Islamic Bank 18.30 0.00 1,279,641 B Qatar Gas Transport(Nakilat) 3.09 Reserve Chair Jerome Powell’s gle the tapering from rate hikes, 0.32 1,582,991 Qatar General Insurance & Re eff orts to delink the start of as- minutes from the July Fed meet- 2.10 0.00 - Qatar German Co For Medical 2.96 -1.50 5,668,716 set-purchase tapering from the ing showed. Qatar Fuel Qsc 17.98 -0.39 411,728 countdown to eventual policy- Kevin Flanagan, head of Qatar First Bank 1.80 -0.94 976,100 rate hikes. fi xed-income strategy at Wis- Qatar Electricity & Water Co 16.72 -0.12 364,478 Since Powell last week said domTree Investments Inc, Qatar Exchange Index Etf 10.84 0.00 - the central bank could begin which runs exchange-traded Qatar Cinema & Film Distrib 3.98 0.00 - Al Rayan Qatar Etf reducing its monthly bond buy- funds with assets of $75bn, sees 2.49 0.00 6,622 Qatar Insurance Co 2.47 0.04 155,473 ing this year, traders have stuck trouble for the Fed. Qatar Aluminum Manufacturing 1.62 -0.31 8,099,943 with early 2023 as the likely His view is that the labour Ooredoo Qpsc 6.95 0.51 954,155 timing for the Fed’s liftoff from market will keep gaining ground Alijarah Holding Company Qps 1.04 -0.76 2,091,923 zero interest rates, and Treasury in its rebound from the pan- Mazaya Real Estate Developme 1.04 -0.85 4,264,190 yields have barely budged. demic, and that the median Mesaieed Petrochemical Holdi 2.00 -0.20 1,721,851 But that calm faces a test September dot may show a hike Al Meera Consumer Goods Co 19.93 0.00 19,333 Medicare Group 8.45 -0.02 104,822 starting Friday. The poten- in 2022. That bodes for higher Mannai Corporation Qsc 4.02 2.95 100 tial for volatility comes from yields, a fl atter curve and makes Masraf Al Rayan 4.52 0.02 6,432,308 the fact that when Fed offi cials fl oating-rate notes appealing, Al Khalij Commercial Bank 2.25 0.00 252,094 gather this month, they will re- he said. Industries Qatar 13.00 0.00 660,225 lease fresh projections for the The median of econo- Inma Holding Company 5.01 0.44 1,224,374 fed funds rate for the next few mists’ projection is for a gain Investment Holding Group 1.23 -0.16 17,074,230 Gulf Warehousing Company 5.07 -0.63 195,059 years. And with the labour mar- of 725,000 jobs in August, a Gulf International Services 1.51 0.53 19,494,155 ket pivotal for Fed policy now, slowdown from June and July Al Faleh Education Holding 1.69 -0.12 18,627 Friday’s August jobs report is but well above the average for Ezdan Holding Group 1.58 -0.44 1,170,277 seen as laying the foundation 2021. Of course, with millions Doha Insurance Co 1.88 -0.05 186,740 for these forecasts – collectively gional presidents will be back ing until at least 2024 – but that reduction in asset purchases still out of work relative to pre- Doha Bank Qpsc 2.84 0.00 955,104 known as the dot plot – espe- on the tape in a fl ash,” sounding seven participants saw at least will not be intended to carry a pandemic levels, the Fed may Dlala Holding 1.55 -0.06 502,134 Commercial Bank Psqc 6.00 prove to take longer to lift rates -0.66 982,759 cially as some Fed offi cials have hawkish again, said Jim Vogel, one increase next year. This time direct signal regarding the tim- Barwa Real Estate Co 3.11 0.19 661,338 already been pushing for an an analyst at FHN Financial. around, it will take just three ing of interest rate liftoff , for than traders expect, especially Baladna 1.62 -0.61 5,581,069 early taper. “And you may have more of- offi cials to raise their dots for which we have articulated a dif- given the central bank’s “broad Al Khaleej Takaful Group 4.59 4.20 1,770,078 The upshot is that a robust fi cials pencilling in a 2022 hike. 2022 for a full hike to be the new ferent and substantially more and inclusive” maximum-em- Aamal Co 0.98 -0.71 784,714 reading Friday could have in- And that would have to fl atten median for next year, assuming stringent test.” ployment goal. But the market Al Ahli Bank 3.82 0.00 - vestors pulling forward tighten- the yield curve.” everyone else keeps their pro- But the leadup to the Fed de- may be about to challenge that ing bets regardless of Powell’s Expectations for a hawkish jections where they were. cision on September 22 may cul- approach. eff orts last week in his virtual shift would lift 5-year Treasury Traders responded to the minate in a dot-plot unveiling “We are going to be all of a speech at the Fed’s Jackson Hole yields in particular, shrinking Fed’s June rate projections by that yet again presents a com- sudden talking about rate hikes symposium. the gap with 30-year rates, Vo- driving 5-year yields up the munication challenge for policy potentially next year, and that The risk is traders will pre- gel said. That spread was around most in almost four months. makers, as has been seen several is where the focus of the bond EM currencies gain pare for a repeat of June, when a 114 basis points Wednesday, That was even as Powell said in times since the Fed introduced market is going to go,” Flanagan hawkish signal via the dot-plot down from about 140 just before his press conference that the the projections in 2012. said. took markets by surprise and the Fed met in mid-June. dot plot should be taken with a “There’s information in the “The dot plot will be the Fed’s on weak dollar triggered an abrupt unwind- Offi cials’ June quarterly fore- “big grain of salt” and discus- dots, and generally it’s good initial message for its forward ing of wagers on a steeper yield casts not only showed a median sion about raising rates would information,” said Shahid Lad- guidance on rates. And then it Reuters problems ahead. “Productivity slow- curve. funds rate projection of two be “highly premature.” ha, head of Group-of-10 rates will begin to come from Fed- Singapore down, a more leveraged economy, If the employment report is hikes in 2023 – after the March Powell last week said “the strategy for the Americas at speak – which is when the rub- a narrower policy space and uncer- “even deemed acceptable, re- dot plot indicated no tighten- timing and pace of the coming BNP Paribas SA. It makes sense ber will really meet the road.” tainty associated with the pandemic Emerging stocks looked set to end a cloud the growth outlook,” strate- four-day winning run on Thursday, gists at Citi Research said, adding as worries over economic growth they expected a significant fall in weighed, while most currencies economic activity that is likely to firmed against a dollar hovering at become more visible in 2022. EM Singapore rolls out SPAC rules as global scrutiny rises multi-week lows following disap- stocks hit a six-week high before pointing jobs data. trading flat as gains in many Asian Turkey’s lira was up 0.3%. bourses, including the Shanghai Bloomberg Beating Hong Kong to the punch, align sponsor interest with shareholder joint managing partner at legal firm Several investors who participated Composite and Hong Kong stocks Singapore Singapore’s approval comes as global interest rather than what we proposed, TSMP Law Corp. The pool of Asia- in a central bank conference call on off set losses elsewhere. financial regulators are stepping up which were features that restricted based target firms for SPACs, which Wednesday said it hinted at a pos- South African stocks lost 0.4%, scrutiny of SPACs. shareholder rights,” said Tan Boon Gin, sell shares to raise money and explore sible interest rate cut, and noted it while the rand hit a one-month high, ingapore Exchange Ltd has in- While firms worldwide have raised chief executive officer at Singapore Ex- takeovers, is mainly in the S$500mn did not repeat previous promises to extending gains to the ninth straight troduced a framework for blank- a total of $130bn this year via SPACs – change Regulation. to S$1bn range – making a S$150mn keep the rate above inflation. session — its longest such run since Scheck companies to list in the according to data compiled by Bloomb- The exchange’s regulatory arm had threshold more market-friendly. President Tayyip Erdogan has December 2010. city-state, the first Asian financial hub erg – the pace of listings has abated in earlier this year proposed tighter re- Under the new rules too, warrants called for a cut, even tough the It is set to gain around 6.8% over to host the vehicles whose popularity recent months with the US Securities strictions than in the US as it looked to will now be detachable from shares inflation rate matches the country’s the latest winning streak. in global financial markets has surged and Exchange Commission calling for boost the local IPO market while also while investors who vote in favour of a benchmark interest rate of 19%. “The (rand) is heading into over- over the past year. more disclosures and a recent earnings seeking to address worries over inves- business combination will be allowed to August inflation data is due on bought territory, but we are unlikely Special purpose acquisition compa- bust validating some concerns over the tor protection. redeem shares. Friday, and the next rate meeting is to have a significant correction nies, or SPACs, will be allowed to list in structures. In an interview in February, SGX’s Meanwhile, market participants ex- on September 23. before Friday’s US payrolls and un- Singapore starting Friday under a more The introduction of the rules posi- chief executive officer Loh Boon Chye pect SPACs to boost Singapore’s IPO The lira had hit a nearly four- employment numbers,” said Andre liberal rulebook than initially envi- tions SGX “as a regional first-mover had said the exchange is aiming to list business, at a time when Southeast month high, before paring some Cilliers, currency strategist at Treas- sioned by the exchange. in serving Asia’s fast-growing new its first SPAC this year. Asian companies are looking attractive. gains. It is down 10% this year, uryONE. Peruvian bonds were in The entities require a minimum mar- tech and new economy companies’ fi- While the “honeymoon period” with “There is an ecosystem of companies but gained on Wednesday when focus after ratings agency Moody’s ket capitalisation of S$150mn ($112mn), nancing needs,” a spokesperson for the blank check companies in the US seems in Singapore that have a regional foot- a strong GDP number boosted downgraded Peru’s rating by one half of the amount SGX proposed earli- Monetary Authority of Singapore said to have come to an end, “international print and they may choose to list in Sin- sentiment. JPMorgan, Goldman notch to ‘Baa1’ late on Wednesday, er, while certain limits on warrants and in a statement. sponsors may see Singapore as a good gapore; tech will definitely be a relevant Sachs and Credit Suisse raised their citing a “continuously polarised and share redemption have been removed, SGX changed its proposed rules for neutral exchange to launch their SPACs sector as SPACs take off,” said Vineet Turkish economic growth forecasts fractured political environment” a statement from the bourse showed SPAC listings following market feed- and attract Asian targets” given Sino- Mishra, co-head of Asean investment for 2021 post the report, but Citi saw aff ecting policymaking capacity. Thursday. back. The market wants “features that US tensions, said Stefanie Yuen Thio, banking at JPMorgan Chase & Co. Asian markets mixed as recovery fears off set optimism

AFP unqualified drivers and “shifting remain at record lows for a period of good news for risk assets given the Hong Kong the risks of operations onto driv- time afterwards, though he gave no punchbowl will remain well liquefi ed ers”, the transport ministry said in timeframe. for a bit longer,” he added. a statement. The release of US non-farm payrolls For now, investors are also look- sian markets were mixed Thurs- The fi rms were ordered to investi- fi gures Friday will be closely moni- ing past a spike in infections from the day, with fresh fears about Chi- gate internal problems and “immedi- tored, with some observers saying a Delta coronavirus variant, which has Ana’s crackdown on tech fi rms ately rectify” poor behaviour, while strong reading could push the bank forced some countries to impose lock- off setting optimism about the global ride-hailing platforms were also to start its pullback as soon as next downs, and instead focus on the long- recovery outlook and easing Covid told to reduce the cut they take from month. term recovery outlook. fears. transactions and protect passengers’ Data from private payrolls fi rm ADP “The market is fading Covid more as While Wall Street provided a tepid personal data. on Wednesday showed far fewer posts a risk in terms of really hampering eco- lead, the day got off to a good start The move follows a series of meas- created last month than had been ex- nomic activity,” Tracie McMillion, at with equities extending a recent rally ures against Chinese tech fi rms as well pected, weighed by the fresh surge in Wells Fargo Investment Institute, told as investors prepared themselves for as other sectors including private tui- coronavirus cases around the United Bloomberg Television. the release of key US jobs data. tion, property and video games. States. “We think the Fed is going to stick But sentiment was given a jolt after The news rattled investors. “Although the ADP report doesn’t with their word and they will start ta- news emerged that Chinese regulators Hong Kong fl uctuated, closing up have a great track record at predict- pering later this year. had summoned ride-hailing giant Didi after briefl y falling into negative ter- ing US non-farm payrolls outcomes, But we don’t think they are going to Chuxing and ten other car platforms to ritory from a rise of more than one % the big miss was too big to ignore,” be in any hurry to raise interest rates.” give them a dressing down in the latest earlier in the day. said National Australia Bank’s Rod- Oil prices were fl at a day after slip- move against tech fi rms it sees as gain- Meituan remained in the green. rigo Catril. ping in reaction to Opec and other ma- ing too much power. The Hang Seng Index as well as Investors look at computer screens showing stock information at a brokerage He added that a big miss in Fri- jor producers agreeing to lift output as Offi cials demanded the fi rms, which Shanghai’s composite index had been house in Shanghai. The Composite closed up 0.8% to 3,597.04 points yesterday. day’s data — forecasts are for around the economy rebounds and demand is also included the ride-hailing arm supported by the People’s Bank of Chi- 750,000 — would mean the Fed’s seen picking up. of major services app Meituan, cease na’s decision to provide tens of billions up but Sydney, Singapore, Seoul, Tai- eral Reserve boss Jerome Powell last goal of making “further substantial In Tokyo, the Nikkei 225 closed up “disorderly expansion” and “vicious of dollars in low-cost funding to lend- pei and Jakarta fell. week indicating that while the bank progress” in the jobs market would 0.3% to 28,543.51 points; Hong Kong competition” tactics. ers to help them off er more support to London, Paris and Frankfurt all intends to start tapering its ultra- take longer to achieve, “thus delaying Hang Seng Index ended up 0.2% to They were told in a meeting Wednes- small and medium-sized companies. edged up in early trade. loose monetary policy, it would do the tapering decision from September 26,090.43 points and Shanghai Com- day that the industry suff ered from Tokyo, Shanghai, Wellington, Ma- There is still general confidence so cautiously. to November”. posite closed up 0.8% to 3,597.04 poor behaviour including recruiting nila, Mumbai and Bangkok were also on trading floors, helped by Fed- He also suggested interest rates will “Bad news in the labour market is points yesterday. Gulf Times Friday, September 3, 2021 3 BUSINESS

RBC headquarters for sale as Oxford China Evergrande’s Group and CPPIB seek $1bn-plus

Bloomberg C$10bn ($7.9bn), the Oxford Toronto spokesman said. total liabilities swell The firms are “exploring the opportunity to capitalise Oxford Properties Group on the strong institutional and Canada Pension demand for well-let and Plan Investment Board well-located prime office are exploring the sale of assets,” Randy Hoffman, Toronto’s Royal Bank Plaza senior vice president for in a deal that could be worth Canada at Oxford, said in to over $300bn more than $1bn, according to an e-mailed statement. a person with knowledge of “We’re seeing examples of Bloomberg Corp, Agricultural Bank of China the plans. this strong demand across Hong Kong Ltd and Industrial & Commer- The site at 200 Bay Street global gateway markets, cial Bank of China Ltd. is one of the largest office including our recent sale Still, some see little risk that complexes in Toronto’s of One Memorial Drive n the face of it, China the problems at Evergrande will financial district and includes in Boston that achieved Evergrande Group made spread to hurt the bonds of other two towers and a retail record pricing.”Oxford has Oprogress cutting its debt Chinese developers. concourse with roughly owned the site since 1999. load in the fi rst half of the year. “Unfortunately it looks like 1.5mn square feet. CPPIB, which bought a stake On closer examination, paying it’s going to be a train wreck” Built in the 1970s, the towers in 2005, didn’t reply to a its dues got even harder. for Evergrande, Teresa Kong, a feature windows that are request for comment. The developer’s borrowings, portfolio manager at Matthews covered with 24-carat gold Office vacancies in or interest-bearing debt, fell International Capital Manage- coating, making them two downtown Toronto jumped to a fi ve-year low as of June 30, ment LLC in San Francisco, said of the most distinctive during the pandemic to 10%, results showed. But its overall on Bloomberg Television. “This office buildings in Canada’s the highest since 2008, with liabilities rose to a near-record is very much due to idiosyncratic largest city. Royal Bank of most office workers working 1.97tn yuan ($305bn), thanks risk as opposed to systematic Canada leases 40% of the remotely, according to CBRE. mainly to swelling bills to sup- risk that might be contagious.” complex and says it intends While executives on Wall pliers. Cash and cash equivalents Evergrande said some prop- to stay even as most of its Street have pushed to plunged to a six-year low. erty development payables were employees continue to work return more employees to The upshot: Evergrande will overdue, leading to the suspen- remotely. the office, their Canadian need to accelerate asset sales and sion of work on some projects. A spokesman for Oxford counterparts have been less continue to aggressively discount The company is negotiating confirmed it has hired CBRE aggressive in bringing back apartment prices to generate with suppliers and construc- Group Inc and RBC Capital staff, citing the success of enough cash to meet its obliga- tion contractors to resume the Markets to work on the sale remote work. tions. Bonds tumbled after the work, it added. “The group will but declined to comment on Still, there are signs that world’s most indebted developer do its utmost to continue its op- pricing. demand is rebounding in said it risks defaulting on borrow- erations and endeavour to de- The potential sale is part of the city. In May, prospective ings if its all-out eff ort falls short. Pedestrians walk past the China Evergrande Centre in Hong Kong. The developer’s borrowings, or liver properties to customers as a strategy by Oxford, the tenants touring downtown “Now it’s at a critical point,” interest-bearing debt, fell to a five-year low as of June 30. But its overall liabilities rose to a near-record scheduled,” it said. real estate arm of Ontario Toronto offices hit the said Chuanyi Zhou, a credit $305bn, thanks mainly to swelling bills to suppliers. Evergrande’s debt shrank Municipal Employees highest level since the analyst at Lucror Analytics. “If to 572bn yuan, according to Retirement System, to pandemic started, CBRE said. asset sales and introduction of into margins in the fi rst half, cents on the dollar to 37.6 cents margin outlook, already the Bloomberg calculations based unload some office assets An RBC spokesman said the new investors don’t progress helping push net income down on Wednesday, according to most dour among peers,” said on the results. That’s down 20% and increase exposure bank remains committed to well and meet the government’s 29% to 10.5 billion yuan, in line Bloomberg-compiled data, on Bloomberg Intelligence analysts from 717bn yuan at the end of to life sciences, logistics staying at the plaza, where it expectation, a default is likely to with an earlier profi t warning. pace for a fresh record low. Patrick Wong and Lisa Zhou. last year and 15% from 674bn and apartment properties. has a long-term lease. happen, possibly followed by an “The group has risks of de- Its 8.75% note due 2025 – once With banks, suppliers and yuan in March. Still, trade and Oxford sold an office tower “We are continuing to out-of-court arrangement with faults on borrowings and cases one of the most widely traded homebuyers exposed to the real other payables climbed 15% from last month that’s leased to invest in this important, creditors.” of litigation outside of its normal Chinese dollar notes – slid 4.8 estate giant, any collapse could six months earlier to a record Microsoft Corp in Cambridge, sought after and ideally Evergrande said it’s exploring course of business,” the Shen- cents to 29.8 cents. The compa- roil China’s economy, raising 951.1bn yuan. Massachusetts, for $825mn. situated property, which the sale of interests in its listed zhen-based company said in the ny’s shares dropped 3% in Hong questions over whether it might The company still falls short The proceeds from any sale has been our head office in electric vehicle and property statement. “Shareholders and Kong, taking this year’s decline receive state support. Regulators on two of China’s so-called three of Royal Bank Plaza would Canada since 1977, including services units, as well as other potential investors are advised to to 72%. urged Evergrande to resolve its red lines – metrics imposed on be used to fund Oxford’s refreshing our main branch,” assets, and seeking to bring in exercise caution when dealing in “A fi re sale of more assets debt woes in a rare public rebuke developers as part of a crack- development pipeline the spokesman, Andrew new investors and renew bor- the securities of the group.” could be needed to ease Ever- earlier this month. down on leverage in the industry. in the greater Toronto Block said in an e-mailed rowings. Sharp discounts to Evergrande’s 8.25% dol- grande’s liquidity woes, yet this Among Evergrande’s top lend- It has pledged to meet all three region, which is more than statement. swiftly offl oad apartments cut lar bond due in March fell 7.2 would worsen its earnings and ers are China Minsheng Banking by December 2022. Friday, September 3, 2021 GULF TIMES BUSINESS

Saudi Arabia’s utility developer Al-Sulaiti meets Brazilian Minister of Communications ACWA Power unveils $1bn IPO

Reuters ACWA Power’s IPO is expected to raise more Dubai than $1bn, valuing the company about $10bn, two sources have told Reuters. A bidding and book building process for in- audi Arabian utility developer ACWA Power stitutions will begin on September 15 and end on on Thursday announced its intention to fl oat September 27, ACWA said in a document made Son the Riyadh bourse in an initial public of- public on Thursday. fering (IPO) sources have said could raise more The subscription period for individuals runs than $1bn. from September 29 to October 1.The fi nal share The company, which is half-owned by the allocations will be made on October 4. kingdom’s sovereign wealth fund, plans to issue About 70% of the IPO proceeds will go to- 85.3mn shares, representing 11.67% of the com- wards fi nancing the company’s equity contribu- pany after a capital increase. tion to the upcoming projects and the remaining Just over 81.2mn shares, representing 11.1% of 30% will be used for general corporate purposes, the company, will be off ered to the public. ACWA said. Around 4.14mn shares, representing 0.57% of About 160mn riyals ($42.66mn) from the pro- the company, will be allocated to certain employ- ceeds will be applied to settle all the fees and ex- ees of the company and its subsidiaries as part of penses related to the IPO, including the fees of its employee IPO grant plan. banks and lawyers.

Oman budget defi cit down sharply year-on-year in July Oman posted a year-to-date budget deficit of 1.2bn rials solidation continues, the public spending continues ($3.13bn) in July, a 22.2% annual decline in its fiscal short- to decline,” the ministry said in a statement on Thurs- fall, the ministry of finance said, as the country starts day. Total spending was down by 4.7% in the year to reaping the benefits of fiscal consolidation reforms. July, compared to the same period a year earlier. Oman’s revenues increased marginally by 0.5% The oil-producing Gulf state has embarked on a in the year to the end of July when compared to the raft of measures in the past year to fix its debt- HE the Minister of Transport and Communications Jassim Seif Ahmed al-Sulaiti met yesterday Brazilian Minister of Communications Fabio same period in 2020, while oil revenues went up by burdened finances and has asked the International Faria, who is currently visiting Qatar. During the meeting, the two off icials discussed aspects of co-operation between the two friendly 3.4% on the back of a rebound in crude prices after Monetary Fund to provide technical assistance on its countries in the field of communication and information technology and means of further enhancing them. The two off icials also discussed a the coronavirus-driven slump in 2020. “As fiscal con- debt strategy. number of matters of common interest between the two countries. The meeting was attended by Brazil’s ambassador to Qatar Luiz Alberto.

Qatar bourse index slips US weekly jobless claims below 11,100 points despite buying support decline; layoff s tumble ers. The domestic funds’ net selling By Santhosh V Perumal Business Reporter increased perceptibly to QR15.97mn Reuters compared to QR15.08mn on Septem- Washington ber 1. The foreign institutions’ net he Qatar Stock Exchange yes- buying shrank drastically to QR5.52mn terday witnessed buying inter- against QR30.55mn the previous day. he number of Americans fi l- Tests from the Gulf individuals However, the Arab individu- ing new claims for jobless ben- and the Arab funds even as it settled als’ net buying grew considerably to Tefi ts fell last week, while layoff s in the negative to settle below 11,100 QR4.19mn compared to QR0.61mn on dropped to their lowest level in more points. Wednesday. than 24 years in August, suggesting Foreign funds continued to be net The Gulf institutions turned net the labour market was charging ahead buyers but with lesser intensity as the buyers to the tune of QR4.03mn even as new Covid-19 infections 20-stock Qatar Index settled 25 points against net sellers of QR2.71mn on surge. or 0.22% lower at 11,071.16 points, al- September 1. The weekly unemployment claims though it touched an intraday high of The foreign individuals were net report from the Labor Department 11,102 points. buyers to the extent of QR2.13mn com- on Thursday, the most timely data on The domestic institutions were pared with net sellers of QR0.05mn the the economy’s health, also showed the increasingly net sellers in the mar- previous day. number of people on state unemploy- ket, whose year-to-date gains were The Gulf individuals turned net ment rolls tumbling to a 17-month low at 6.09%. About 50% of the traded buyers to the tune of QR0.6mn against in the third week of August. constituents were in the red in the net sellers of QR0.21mn on Wednes- Declining layoff s should help to ease bourse, whose capitalisation saw day. The Arab institutions were net concerns about the economy even if more than QR2bn or 0.35% decline to buyers to the extent of QR0.57mn August’s closely watched employment QR637.78bn, mainly due to small and compared with no major net exposure report on Friday shows a slowdown microcap segments. on September 1. non-farm payrolls growth. Local retail investors’ net profi t Qatari individuals’ net profi t book- “Regardless of tomorrow’s report, booking weakened in the market, ing eased substantially to QR1.09mn keep in mind that the weekly jobless which saw the industrials sector alone against QR13.12mn the previous day. fi gures say the labour market screws Job seekers speak with recruiters during a job fair at a community centre in Beattyville, Kentucky. The number of constitute about 45% of the total trad- Total trade volume rose 11% to continue to tighten,” said Chris Rup- Americans filing new claims for jobless benefits fell last week, while layoff s dropped to their lowest level in more than 24 ing volume. The overall trade turnover 109.4mn shares, value by 10% to key, chief economist at FWDBONDS years in August, suggesting the labour market was charging ahead even as new Covid-19 infections surge. and volumes were on the increase in Q310.18mn and transactions by 17% in New York. “There is no sign that the the bourse, where the Arab individuals to 8,760. The insurance sector’s trade Delta variant is leading to job losses Employment Report on Wednesday after rising by 943,000 in July. partment said in a separate report on were increasingly net buyers. volume soared 87% to 2.21mn equi- across the country.” showed that private payrolls increased “We expect the jobs report to show Thursday. The Gulf funds and foreign indi- ties and value more than tripled to Initial claims for state unemploy- by only 374,000 jobs in August. that the economy continued to add Economists have sharply marked viduals were seen bullish in the mar- QR9.28mn on more than doubled ment benefi ts dropped 14,000 to a The report, however, has a very poor jobs at a rapid pace in August, defy- down their gross domestic product ket, which saw a total of 6,622 ex- deals to 293. There was 43% surge in seasonally adjusted 340,000 for the record predicting the private payrolls ing Covid-19 Delta variant outbreaks estimates for the third quarter to a low change traded funds (Masraf Al Rayan the consumer goods and services sec- week ended August 28, the lowest lev- count in the Labor Department’s more across the country,” said Julia Pollak, as a 2.9% annualised rate from as high sponsored QATR) valued at QR16,488 tor’s trade volume to 21.38mn stocks, el since mid-March 2020 when man- comprehensive employment report. chief economist at ZipRecruiter. as a 9% pace. change hands across one deal. 41% in value to QR46.55mn and 48% datory closures of nonessential busi- But hiring by small businesses ac- That optimism was underscored by The economy grew at a 6.6% rate in The Total Return Index fell 0.22% in transactions to 1,276. nesses were enforced to slow the fi rst celerated. The Conference Board’s a separate report on Thursday from the second quarter. to 21,916.04 points, All Share In- The industrials sector’s trade vol- wave of coronavirus cases. labour market diff erential — derived global outplacement fi rm Challenger, “The slowdown is not broad-based dex by 0.3% to 3,515.15 points and Al ume shot up 14% to 49.12mn shares Economists polled by Reuters had from data on consumers’ views on Gray & Christmas showing job cuts and primarily refl ects payback from Rayan Islamic Index (Price) by 0.03% and value by 2% to QR84.58mn, while forecast 345,000 applications for the whether jobs are plentiful or hard to announced by US-based employers stimulus spending and ongoing sup- to 2,515.53 points in the market which deals were down 13% to 1,987. latest week. get — slipped, but it was not too far decreased 17% to 15,723 in August, the ply issues,” said Ellen Zentner, chief saw no trading of sovereign bonds and The real estate sector reported 10% Claims have dropped from a record from July’s 21-year high. lowest number since June 1997. US economist at Morgan Stanley in treasury bills. jump in trade volume to 10.95mn eq- 6.149mn in early April 2020. While last week’s claims data has So far this year, employers have an- New York. They are in full retention The banks and fi nancial services uities, 7% in value to QR15.78mn and They, however, remain above the no bearing on August’s employment nounced 247,326 job cuts, down 87% mode,” said Andrew Challenger, sen- sector index declined .56%, consumer 41% in transactions to 743. 200,000-250,000 range viewed as report as it falls outside the survey pe- compared to the same period last year. ior vice president at Challenger, Gray goods and services (0.19%), real es- However, the transport sector’s consistent with healthy labour market riod, applications trended lower last “Companies are much more con- & Christmas. tate (0.06%) and industrials (0.04%); trade volume plummeted 18% to 2mn conditions. month. cerned about their talent getting The pandemic has upended labour while telecom gained 0.54%, insurance stocks and value by 23% to QR7.55mn The latest wave of Covid-19 infec- The claims report showed the poached than with fi nding ways to cut market dynamics, creating worker (0.34%) and transport (0.14%). but on fl at deals at 307. tions, driven by the Delta variant of the number of people continuing to re- staff . shortages even as 8.7mn people are of- Major losers included Qatari Inves- The banks and fi nancial services sec- coronavirus, and a relentless shortage ceive benefi ts after an initial week of The labour market recovery is gain- fi cially unemployed. tors Group, Qatari German Medical tor saw 14% plunge in trade volume to of workers have left some economists aid plunged 160,000 to 2.748mn in the ing steam despite a slowdown in eco- There were a record 10.1mn job Devices, QNB, Qatar First Bank, Ma- 21.52mn shares but on 6% growth in anticipating a sharp slowdown in Au- week ended August 21, the lowest level nomic activity caused by the latest openings at the end of June. Lack of af- zaya Qatar, Alijarah Holding, Aamal value to QR137.48mn and transactions gust job growth. since mid-March 2020. US stocks coronavirus wave, the fading boost fordable childcare, fears of contracting Company, Qamco, Qatar Islamic In- by 21% to 3,378. The telecom sector’s Labour market indicators last opened higher. from fi scal stimulus and supply con- the coronavirus, generous unemploy- surance and Gulf Warehousing. trade volume was down 5% to 2.21mn month were mixed. The dollar was steady against a bas- straints. ment benefi ts funded by the federal Nevertheless, Al Khaleej Takaful, equities and value by 18% to QR8.61mn, The Institute for Supply Manage- ket of currencies. US Treasury prices But the moderation in growth is government as well as pandemic-re- Mannai Corporation, Widam Food, whereas deals expanded 42% to 576. ment’s measure of factory employ- rose. likely to be mitigated by a shrinking lated retirements and career changes Qatar Industrial Manufacturing, Qatar In the venture market, Al Faleh ment contracted in August and fell to According to a Reuters survey of trade defi cit. have been blamed for the disconnect. National Cement, Inma Holding, Gulf equities were seen declining 0.12%; its lowest level since November. economists, non-farm payrolls likely The trade gap narrowed 4.3% to The labour crunch is expected to International Services, Vodafone Qa- whereas those of Mekdam Holding The release of the ADP National increased by 750,000 jobs last month $70.1bn in July, the Commerce De- ease starting in September. tar and Ooredoo were among the gain- gained 3.2%. Apple to let media apps avoid 30% fee after global scrutiny

Bloomberg gives Apple up to a 30% commission on rea that’s set to force the two leading app transparency of its app reviews and give a result. Last month, as part of a preliminary purchases in global hit Fortnite, which alone San Francisco downloads and in-app subscriptions. That store operators to allow users a choice annual reports to the country’s FTC for the settlement of a class-action lawsuit with generated more than $1bn of sales through rule will still apply to games, the most of online payment methods. The first next three years as part of the settlement. App Store developers, Apple agreed to pay Apple’s platform in its 30 months on the App lucrative class of mobile apps, as well as legislation of its kind, the bill will become “We have great respect for the Japan out $100mn and to let US-based software Store. Epic wants to be able to handle in-app Apple Inc will allow developers of some in-app purchases. law when signed by President Moon Jae-in Fair Trade Commission and appreciate the makers advertise outside payment methods purchases directly, and the judge overseeing apps like Netflix to link from its App Store “When it comes to in-game content and similar measures are under considera- work we’ve done together, which will help to consumers via e-mail. Today’s decision the trial between the two companies has to external websites for payments by purchases, which make the bulk of rev- tion by US lawmakers. developers of reader apps make it easier appears similarly incremental. suggested that Apple compromise by mak- users, a modest concession to global scru- enues for the App Store, they have kept On Thursday, India’s antitrust regulator for users to set up and manage their apps In-game spending accounts for more ing a change similar to the one announced tiny of the 30% cut it typically takes from their walled garden locked to outsiders,” was also reported to have started an in- and services,” Phil Schiller, who oversees than half of App Store sales – $26bn of for readers apps today. services and purchases on the iPhone. said Amir Anvarzadeh, senior strategist at vestigation into Apple’s in-app payments. Apple’s App Store, said in a statement. $41.5bn consumer spending in the first Tim Sweeney, chief executive off icer of The Cupertino, California-based Asymmetric Advisors. “Nevertheless, Apple Apple’s historic resoluteness about Companies like Netflix Inc. and Spotify half of this year, according to Sensor Tow- Epic, said the move didn’t go far enough. technology giant said the change, settling is clearly under the spotlight” and “lower maintaining its 30% cut was relaxed in Technology SA have long complained that er – but is not aff ected by this new policy “Apple should open up iOS on the an investigation by Japan’s Fair Trade royalty fees or handling fees in the case of November when the company announced Apple doesn’t allow them to link to their web change. Subscription apps, which are most basis of hardware, stores, payments, and Commission, will go into eff ect globally in-game content purchases are inevitable.” it would reduce its fee to 15% for app mak- portals for users to sign up for their services. likely to benefit from Apple’s relaxing of services each competing individually on early next year for so-called reader apps The announcement comes at a time of ers earning up to $1mn a year. The latest Apple has previously rejected or removed rules for reader apps, accounted for less their merits,” Sweeney said in a tweet. spanning content like magazines, news- rising regulatory scrutiny and criticism of news helps the company achieve a settle- third-party applications that attempted than 13% of user spending over that period “Instead, they’re running a literally day-by- papers, books, audio, music and video. To the market dominance of Apple and Al- ment with Japan’s regulator, which is now to steer users to web-based alternative across the iOS App Store and Android Play day recalculation of divide-and-conquer in date, Apple has forced such applications phabet Inc’s Google on mobile platforms. closing its investigation into the App Store. payment methods and Netflix has simply Store. Apple’s change won’t resolve its legal hopes of getting away with most of their to use its in-app purchase system, which On Tuesday, a new bill passed in South Ko- Apple has committed to improving the declined to off er an in-app sign-up option as dispute with Epic Games Inc. over in-app tying practices.”