WAIVERS END: Page 4 Sinopec, CNPC skip Iran oil buy for May

Saturday, May 11, 2019 Ramadan 6, 1440 AH NATIONAL SECURITY CONCERNS: Page 12 US FCC bars China GULF TIMES Mobile from market; reviewing other BUSINESS Chinese carriers Turkish banks Trump says in no hurry sell dollars to support lira

Reuters The move to suspend one-week to sign deal with China Ankara repo auctions for the second time in less than two months will gradually raise the average Turkish state banks sold more cost of funding from the bank’s than $1bn on Thursday and benchmark one-week repo rate overnight, sources said, helping of 24% to the overnight lending the lira to firm more than 2% at rate of 25.5%. Some analysts as trade war escalates one stage and stem declines have said a more eff ective meas- triggered by a decision this week ure to stem the lira’s fall would US tariff increase on Chinese goods growth,” French Finance Minister Bruno to re-run Istanbul’s mayoral be a straightforward hike in the takes eff ect; China to retaliate, does Le Maire said yesterday. Many business election. policy rate. not immediately give details; US, groups have opposed the tariff s, saying The lira traded at 6.0975 at 1315 “The steady trend of (lira) depre- Chinese off icials start second day they will be disastrous for companies and GMT, up from Thursday’s close ciation could potentially push in- of talks lead to higher prices for consumers across of 6.1935. flation significantly higher than a range of products. The currency rose to 6.0515 expected even beyond 2019. Reuters “Our industry supports more than against the US dollar in over- The central bank move has Washington/Beijing 18mn US jobs — but raising tariff s will be night Asia trade. had markedly limited positive disastrous,” Gary Shapiro, chief executive Ziraat Bank, Turkey’s largest impact on the currency this time of the Consumer Technology Association, lender by asset size, was one of around,” Yatirim Finansman said S President Donald Trump yes- a US trade group, said in a statement. the banks that sold dollars to in a note to clients. terday said he was in no hurry to It may take three or four months for support the lira, according to “If CBRT wants to stop (lira) Usign a trade deal with China as American shoppers to feel the pinch but two sources familiar with the volatility eff ectively, it might Washington imposed a new set of tariff s retailers will have little choice but to raise matter. have to introduce a plain vanilla on Chinese goods and negotiators ended prices to cover the rising cost of imports Ziraat Bank was not immediately monetary tightening.” a second day of talks to try to salvage an before too long, economists and industry available for comment. The bank also said it lowered a agreement. consultants say. The sources did not specify foreign exchange maintenance The United States early yesterday in- The US-China battle also has raised which funds the banks used for facility within its so-called re- creased its tariff s on $200bn in Chinese alarm in Europe, which faces an economic the dollar sales, but economists serve options mechanism (ROM) goods to 25% from 10%, rattling fi nancial slowdown and the ripple eff ects of Brit- say the banks have used dollars to 30% from 40% to support markets already worried the 10-month ain’s decision to leave the European Un- sourced from Central Bank facili- financial stability. trade war between the world’s two largest Liu He, China’s vice-premier (left), shakes hands with Steven Mnuchin, US Treasury ion. ties earlier this year to sell into This year’s lira losses come on economies could spiral out of control. Secretary, while departing the Off ice of the US Trade Representative following a meeting There are concerns Trump will follow the market to support the lira. top of a near 30% slide in its China is expected to retaliate. in Washington, DC. yesterday. “They were constructive discussions. That’s all I can say,” through on a threat to impose tariff s on The lira has lost as much as 15% value last year on concerns over The tariff s went into eff ect just hours Mnuchin told reporters as he left. Liu, the lead Chinese negotiator, told reporters at his imported cars and auto parts, an impor- against the dollar this year, with the independence of the central before US Trade Representative Robert hotel in Washington that the talks had gone “fairly well,” Bloomberg reported. tant export sector for Europe. the latest weakness driven by in- bank as well as strained relations Lighthizer, US Treasury Secretary Steven EU countries agreed last month to start vestor concerns over Monday’s with the United States. Mnuchin and Chinese Vice Premier Liu He more than 1% and prices of US govern- toms and Border Protection imposed a formal trade negotiations with the United decision to re-run a mayoral Investors fear that the decision held a second day of talks in Washington. ment debt rose. 25% duty on more than 5,700 categories States, notably on a deal to cut duties on election in Istanbul that had to repeat the Istanbul election The session broke up after about 90 The US dollar slipped against a basket of products leaving China after 12:01am industrial goods. If Washington imposes been narrowly won by the main on June 23 will add nearly two minutes. of currencies. EDT (0401 GMT) yesterday. new trade-restrictive measures, the talks opposition party. months of uncertainty over “They were constructive discussions. Trump, who has adopted protection- Seaborne cargoes shipped from China would be suspended and duties would be Electoral authorities cancelled Turkey’s plans to rebalance and That’s all I can say,” Mnuchin told re- ist policies as part of his “America First” before midnight were not subject to the imposed on US goods. the result of the March 31 vote stabilise the economy. porters as he left Lighthizer’s offi ces near agenda and railed against China for trade new tax as long as they arrived in the The biggest Chinese sector aff ected by in Turkey’s largest city and com- The central bank’s net interna- midday. practices he labels unfair, said the trade United States prior to June 1. the latest tariff increase is a $20 billion- mercial hub after appeals from tional reserves fell slightly to Liu, the lead Chinese negotiator, told talks, originally due to end yesterday, Those cargoes will be charged the origi- plus category of Internet modems, rout- AK Party. $25.84bn in dollar terms as of reporters at his hotel in Washington that could drag on beyond this week. nal 10% rate. ers and other data transmission devices, On Thursday Turkey’s central May 3, data showed on Thurs- the talks had gone “fairly well,” Bloomb- “We will continue to negotiate with “This delay might create an unoffi cial followed by about $12bn worth of printed bank eff ectively tightened policy day, while gross forex reserves erg reported. China in the hopes that they do not again window during which the US and China circuit boards used in a vast array of US- by funding the market through a fell nearly 1% to $72.63bn, In a series of morning tweets, Trump try to redo deal!” said Trump, who has can continue to negotiate,” investment made products. higher rate and took additional another cause of concern for defended the tariff hike and said he was accused Beijing of reneging on commit- bank Goldman Sachs wrote in a note, Furniture, lighting products, auto liquidity steps to bolster the lira. economists. in “absolutely no rush” to fi nalise a deal, ments it made during months of negotia- adding that it was a “somewhat positive parts, vacuum cleaners and building ma- adding that the US economy would gain tions. sign” that talks were continuing. terials also are high on the list of products more from the levies than any agreement. Following the US tariff hike, China’s Trump gave US importers less than fi ve subject to increased duties. “Tariff s will bring in FAR MORE wealth Commerce Ministry said it would take days notice about his decision to increase Just hours after the US move, which to our country than even a phenomenal countermeasures but did not elaborate. the rate on $200bn worth of goods, which will add pressure on an already slowing deal of the traditional kind,” Trump said China responded to Trump’s tar- now matches the rate on a prior $50bn Chinese economy, China’s central bank in one of the tweets. iff s last year with levies on a range of category of Chinese machinery and tech- said it was fully able to cope with any ex- Despite Trump’s insistence that China US goods including soybeans and pork, nology goods. ternal uncertainty. will absorb the cost of the tariff s, US busi- which hurt US farmers at a time when He has also threatened to put new tar- James Green, a senior adviser at nesses will pay them and likely pass them their debt has spiked to its highest level iff s on another $325bn in Chinese imports. McLarty Associates who until August on to consumers. in decades. Investors worry the escalating trade was the top USTR offi cial at the embassy Consumer spending accounts for more US Agriculture Secretary Sonny Perdue war will further damage a slowing global in Beijing, said he expected China would than two-thirds of US economic activity. said yesterday that Trump had asked him economy. increase non-tariff barriers on US fi rms, Global stocks, which have fallen this to create a plan to support the farmers. The higher tariff s could reduce US such as delaying regulatory approvals. week on the increased US-China ten- The US Department of Agriculture al- gross domestic product (GDP) by 0.3% “I think the Chinese in the end will sions, came under renewed pressure yes- ready has rolled out up to $12bn to help and China’s by 0.8% in 2020, consultancy want to keep negotiations going. The lira traded at 6.0975 at 1315 GMT yesterday, up terday. off set farmers’ China-related losses. Oxford Economics said. The question is: ‘where do they go for from Thursday’s close of 6.1935 Major US stock indexes were down Under the latest US action, US Cus- “There is no greater threat to world retaliation?’” he said. EU car Wi-Fi plan delayed as countries await legal advice Stockpiling boosts Britain’s economy

Reuters Last month EU lawmakers gave the thumbs up to but slowdown appears under way Brussels a Wi-Fi-based standard, which primarily connects cars to other cars. Supporters include Renault, Toyota, NXP, Autotalks and Kapsch Traff icCom. Bloomberg deadline to leave the European quarter, partly off setting a record ernment spending also hints at The European Commission’s plan for a Wi-Fi- Daimler, Ford, PSA Group, Deutsche Telekom, London Union. Households, meanwhile, drag from net trade. stockbuilding by departments. based standard for cars endorsed by Volkswagen Ericsson, Huawei, Intel, Qualcomm and Samsung displayed continued resilience With the Brexit deadline now Business investment rose 0.5%, faces a two-month delay as EU countries wait for are lobbying for the 5G standard which hooks in the face of Brexit uncertainty extended, however, factories are breaking the longest slump since legal advice on the proposal, giving a glimmer of up to both cars and devices in the surrounding rexit stockpiling and con- as consumer spending rose the expected to scale back produc- the fi nancial crisis a decade ago. hope to backers of the rival 5G technology. environment, and has a bigger range of sumer spending spurred most in two years. Businesses tion and meet demand from un- Manufacturing surged 2.2%, Envoys from the 28 EU countries met on applications. Bthe British economy in the unexpectedly increased invest- sold goods instead. Car output is the most since 1988, with phar- Wednesday and agreed to extend their review Mobile telecoms operators lobbying group fi rst quarter but a disappointing ment, ending four consecutive also predicted to slump after pro- maceuticals, food, drink and met- of the Commission’s plan by two months after GSMA said there were a number of disputed March suggests that a slowdown quarters of decline. ducers including BMW and Peu- als posting strong gains. There 15 countries asked for more time to allow the EU points in the Commission’s proposal. may already be well under way. But while factories posted an- geot parent PSA went ahead with was “widespread evidence of Council’s lawyers to examine the issue, people “We expect the Council legal service (CLS) to be Growth accelerated to 0.5% other strong month in March, planned shutdowns last month, manufacturers delivering orders familiar with the matter said. critical about this piece of legislation as it lays from 0.2% in the fi nal three construction shrank as did the despite the delay to Brexit. earlier than usual,” the ONS said. The extension will kick in on May 13 following down a de facto mandate for Wi-Fi whereas the months of 2018, the Offi ce for dominant services sector. GDP Business surveys for April were Services grew 0.3% but an ex- formal approval by EU countries on that day. Commission should remain technology neutral,” National Statistics said yesterday. overall fell 0.1% from February. subdued and the Bank of England pected boost from warehousing The delay is not expected to derail the Joop Hazenberg, GSMA’s director, said. That beat the 0.4% expansion in The rush to guard against pos- expects overall growth to slow to failed to materialize. Commission’s proposal, with only Spain and “There are also other strong doubts of the CLS the euro area in the fi rst quarter. sible supply disruptions has seen just 0.2% in the second quarter, In March, services fell 0.1% Finland expressing concerns. on the Delegated Act, such as the Commission The pickup came as companies Siemens UK buy in railway com- leaving offi cials under no pres- and construction dropped 1.9%. Internet connected cars are expected to giving itself powers it does not have.” hoarded goods and manufac- ponents, Unilever stock up on ice sure to raise interest rates. Industrial production rose 0.7%, generate billions of euros in revenue for car The Commission’s proposal can only be turers ramped up production at cream and supermarket Tesco Consumer spending rose with manufacturing gaining 0.9%. makers, telecoms operators and equipment overturned with a blocking majority of EU the fastest pace in three decades increasing supplies of tinned 0.7% in the fi rst quarter, possi- Inventories (excluding the makers once the market takes off . countries. to meet orders from customers food. Stock-building contrib- bly refl ecting Brexit stockpiling alignment adjustment) rose by ahead of the original March 29 uted 0.7% to growth in the fi rst by households. Increased gov- £5.24bn in the quarter. Gulf Times 2 Saturday, May 11, 2019 BUSINESS Malaysia’s hopes of economic revival under Mahathir fade

Reuters ruling coalition have curbed eff orts to Malays could be reduced. Pledges to end as Mahathir’s failure to uphold Islam and ment. That has taken much of our time,” including long-suff ering Malaysia Airlines, Kuala Lumpur boost government revenue, attract invest- the death penalty and rescind oppressive protect Malay interests. he told reporters on Thursday. have faltered. In March, Malaysia’s central ment or create jobs. laws such as the colonial-era Sedition Act “Pakatan is unpopular with the Malay- Investor concerns bank cut its 2019 economic growth Support for the government fell to just were also unpopular with traditionalists. Muslim electorate,” said Adib Zalkalpi, forecast to 4.3-4.8% from 4.9%, on ex- A year ago, Malaysian land surveyor Mu- 39% in March, sharply down from the “Many young people placed a lot of a Malaysia director with political risk Business sentiment has cooled after pectations of a significant drop in export hammad Nur Aliff had high hopes that a 66% rating in August 2018, according to a hope in this new government, but we consultancy Bower Group Asia. initial optimism that followed Pakatan’s expansion due to slowing global growth shock election victory by 93-year-old Ma- survey by independent pollster Merdeka haven’t seen anything that we had hoped “UMNO and PAS have formed a cred- electoral win, due mainly to a lack of and the US-China trade war. hathir Mohamed could be the catalyst for Center. for,” said Aliff , 28, protesting in the capital ible opposition front to challenge the consensus on the way forward for the On Tuesday, Bank Negara Malaysia be- reform and revival in a country hobbled Mahathir also saw his popularity last week with hundreds of other Malays. government by exploiting communal economy, according to an April survey came the first central bank in the region by sky-high public debt and corruption. plunge to 46% from 71% over the same “We want to ensure a better future for sentiments.” of 250 businesses by Ipsos Business to cut its benchmark interest rate, in a But polls show that such optimism has period, although he says he doesn’t put young people, especially young Malays.” Reform ambitions are also hampered Consulting. move to support the country’s economy. been steadily eroded since the election much faith in these numbers. Reform U-turn by fractures within Pakatan, a coalition “The continued lack of clarity on eco- Mahathir has mended ties with China, upset, in which the United Malays Na- Worryingly for Mahathir, Merdeka of parties that was aligned in its goal of nomic policies may lead to increased level reaching a cut-price $11bn rail link deal, tional Organisation (UMNO) was removed Center said Malay Muslims, who make up Following protests by Malays and a removing Najib and UMNO, but doesn’t of anxiety among the businesses and which is a welcome investment boost. from power for the first time in 60 years around 60% of Malaysia’s 32mn people, series of by-election defeats for the ruling seem to agree on much else. further intensify the fear of an economic But with Malaysia’s debt-to-GDP ratio and replaced by Mahathir and the patch- were largely more critical of his adminis- Pakatan coalition this year, many of these “Everyone is working in silos. slowdown,” the firm said its report. around 50%, public support waning and work Pakatan Harapan coalition. tration. planned policies have been put on the Everyone has a general idea of the Investors in the survey also expressed a unstable ruling coalition, it will become Mahathir, who inherited a debt-laden Most of the poorest people in the coun- backburner. problems we face but there really are concerns over currency fluctuations and increasingly diff icult for Mahathir to boost economy, has focused much of his admin- try are Malay and for decades they have In recent months, Malaysia has rolled no discussions going on,” said a senior slowing economic growth. economic growth and win back disil- istration’s attention on cleaning up public been the beneficiaries of subsidies and back eff orts to abolish the death penalty government source, who asked not to be The ringgit currency has slumped this lusioned voters. finances following a multibillion-dollar other aff irmative action policies pushed and revoke repressive security laws, as named due to the sensitivity of the topic. year and stocks are underperforming “With exports likely to remain in the corruption scandal involving state fund by UMNO. well as reversed plans to ratify two UN “We don’t have a common narrative to regional rivals. doldrums, GDP growth in Malaysia looks 1MDB and former prime minister Najib Many in the majority community were human rights treaties, after pro-Malay counter the opposition’s racial rhetoric.” Malaysia has had to fill a revenue short- set to slow to a post-financial crisis low Razak. also angered when Mahathir appointed groups raised objections. Mahathir says accusations the coalition fall stemming from a populist measure to this year. The government’s recent poli- Najib is facing charges but denies any an ethnic Chinese finance minister and But UMNO and members of the opposi- is dysfunctional are false. scrap a goods and services tax last year, cies will make the downturn even worse,” wrongdoing. an attorney-general from the Malaysian- tion Islamist party PAS have been quick “Our attention is directed at correcting while eff orts to turn around struggling Capital Economics said in a research note Meanwhile, deep divisions within the Indian minority, and said cash handouts to to remind voters of what they describe all the mistakes of the previous govern- state entities that burden the treasury, on Wednesday.

Chinese group sells Embattled Jet Airways Hamleys toy stores gets 2 unsolicited bids to India’s AFP Mumbai Reliance ndia’s biggest lender yesterday said it has received two un- Isolicited bids for Jet Airways, raising hopes for the revival of Reuters the debt-laden carrier which was Mumbai/Hong Kong forced to ground its entire fleet last month. The State Bank of India (SBI) leads amleys, the world’s oldest toy re- a consortium of 26 lenders owning tailer, is set to pass from Chinese a controlling stake in the Mumbai- Hto Indian control after Reliance based airline which was India’s sec- Industries Ltd said it had agreed to buy ond-biggest carrier by market share the British high street icon in a deal worth before funding woes brought it to $88.5mn. the verge of bankruptcy. Through its Reliance Brands subsidiary, SBI chairman Rajnish Kumar the conglomerate late on Thursday said it said he was hoping for one more signed an agreement to buy the 250-year- buyer to enter the fray before the old chain from Hong Kong-listed C Banner deadline for submitting bids ended International Holdings Ltd. at 1230 GMT yesterday. Yesterday, C Banner stock was suspend- “Two unsolicited bidders have ed from trading pending an announcement. submitted EoI (expression of in- C Banner wrote off $49.8mn in goodwill terest) for Jet and we are expecting and brand value related to Hamleys, its an- one more bid by the end of the day,” nual report showed. Kumar told reporters without giv- The cut reduced the carrying value of ing further details. the toy retailer by 36% to 626mn yuan The lenders are offering up to ($91.85mn). 75% stake in the company on a fully The £67.96mn deal by Reliance is lower diluted basis, the Press Trust of In- than the £100mn that the Chinese group dia reported. had paid to France’s Groupe Ludendo in The SBI-led consortium has been 2015. However, C Banner’s enthusiasm for looking to sell a controlling stake in British acquisitions has since cooled. Jet, shortlisting four potential buy- ers including Etihad Airways which Having established itself as India’s already owns 24%. leading mobile telecoms player, Jet, which has debts of more Reliance Industries has been fi rming than $1bn, has been in a tailspin for up plans for a retail onslaught to months. It has defaulted on loans combine its traditional outlets with and failed to pay many staff since an online foray aimed at taking on the start of the year. Amazon.com Inc and Walmart Inc After its lenders declined to ex- in India. Reliance is already the tend more funds, the carrier was country’s biggest bricks-and-mortar forced to ground its entire fleet Jet Airways aircraft sit on the tarmac at Chhatrapati Shivaji Maharaj International Airport in Mumbai. The State Bank of India yesterday said it has received two retailer in terms of revenue and on April 17, triggering protests by unsolicited bids for Jet Airways, raising hopes for the revival of the debt-laden carrier which was forced to ground its entire fleet last month. number of stores thousands of employees who have been not paid salaries. Modi’s pro-business reputation as low-cost carriers, high oil prices that of India’s Kingfisher Airlines, financial costs to lenders. Shares Last year, it dropped plans to buy 51% A collapse of Jet, and the loss of he seeks a second term in ongo- and a weak rupee contributed to which ceased operations in 2012 of Jet Airways were up nearly 3% of House of Fraser, sending the British de- more than 20,000 jobs, would deal ing national elections. Bad invest- Jet’s financial demise, experts say. before later going bust, causing yesterday on the Mumbai Stock Ex- partment store chain into administration. a blow to Prime Minister Narendra ments, competition from several Its plight has been compared to thousands of job losses and huge change after SBI’s announcement. The acquisition by Reliance Industries, owned by billionaire Mukesh Ambani, marks the conglomerate’s first foray in an overseas retail brand. “The worldwide acquisition of the iconic In a sunset industry, economics of Adani’s Australian coal mine questioned Hamleys brand and business places Reli- ance into the frontline of global retail,” said Reuters mine’s lower-grade thermal coal would be coal exports has plateaued” said Peter Are coal’s days numbered? Reliance Brands chief executive Darshan Melbourne/Singapore just over $47, suggesting a profit margin of Kiernan, lead energy analyst at the Mehta. $8-$12 per tonne. Economist Intelligence Unit (EIU) in Australia is one of the world’s biggest coal Founded in 1760, Hamleys’ flagship Re- Adani said the A$54 estimate takes into Singapore. suppliers and its miners face an increasingly gent Street store in central London is rec- A crash in Australian thermal coal prices is account royalties, processing fees and the “A sharp reduction in coal use from export competitive future as buyers shift towards ognised around the world. raising fresh questions about the viability cost of financing part of a rail line to the markets such as China, Japan, and India cleaner or renewable fuel sources, The toy seller runs 167 stores across 18 of a controversial $4bn coal mine just a export terminal, although analysts suggest represents a considerable threat,” he said. underlining the view that the country’s countries, the majority of which are in In- week ahead of a national election in which the company’s figures are too bullish. Adding to uncertainty over the mine is an coal boom is topping out. The Australian dia, Reliance said. climate change is a key issue. Tanevski suggests benchmark Newcastle Australian general election next week which Department of Industry, Innovation and The company, which already holds the Final approval of the Carmichael coal 6,000 grade coal would need to be close to could return a Labor government, which has Science expects thermal coal imports from master franchise for the brand in India, mine in Queensland, owned by India’s $100 a tonne for the mine to break even. more aggressive targets towards cutting Japan, Australia’s biggest buyer, to shrink currently operates 88 stores in 29 cities. Adani Enterprises, should come in “a The 6,000 benchmark was quoted at climate emissions. to 131mn tonnes a year by 2024 from over Having established itself as India’s lead- matter of weeks, not months” following $86.20 on Thursday. To be sure, a growing reluctance among 140mn tonnes last year. ing mobile telecoms player, Reliance In- nearly a decade on the drawing board, the Analysts suggest the mine is unlikely to lenders to finance thermal coal projects Ports in China, another big buyer, have been dustries has been firming up plans for a company’s mining chief executive, Lucas start commercial production until the could crimp supply and rally prices. restricting imports from Australia this year, retail onslaught to combine its traditional Dow, told Reuters last month. middle of the next decade at the soonest, As an integrated producer selling to its own claiming environmental concerns. outlets with an online foray aimed at tak- But a 40% slump in benchmark Australian if at all. A profit margin of $8-$12 a tonne plants in India, Adani may also be able to Many analysts say the restrictions are down to ing on Amazon.com Inc and Walmart Inc thermal coal prices since mid-2018 to a two- is half the averages of 2017 and 2018, offset small margins with gains elsewhere, political tensions between Beijing and Canberra in India. year low last month, points to tight profit highlighting how rapidly the market has such as giving other parties access to its over issues of cyber security and China’s Reliance is already the country’s biggest margins and questions as to whether the turned since the Paris agreement on planned rail line if authorities allow new influence in Pacific island nations. bricks-and-mortar retailer in terms of rev- economics will support the launch of the climate change. mines in the same coal basin. Australian producers are struggling to make enue and number of stores. mine as soon as next year. Apart from the economics of the mine, “The Carmichael Project’s low-cost profile, inroads in coal’s remaining boom markets of The conglomerate’s strategy to diver- Adani has said it is aiming to start Adani faces other headwinds, including an the quality of the resource and forecast South Asia in the face of lower-cost competition sify beyond refining and petrochemicals producing 10mn tonnes a year of coal from Australian coal boom that has probably demand from our target markets of India from Indonesia. Shipping data showed has seen its fast-growing telecoms and re- March 2020, but analysts say the target peaked, analysts said. and South-East Asia mean that the project’s Indonesia supplied 149 cargoes, carrying 8.9mn tail operations driving quarterly profit to date is optimistic. “I think a lot of people As users move away from so-called dirty fuel economics are strong,” said an Adani tonnes of thermal coal to India and Pakistan in record highs at a time when its gross refin- are doubting as to whether it will see the sources, coal prices are set to drift lower, spokeswoman in a statement, even when April alone, while Australia has only shipped ing margins have taken a hit from oil price light of day,” said Wood Mackenzie analyst consultants AME Group say. adjusting for the coal’s quality. sporadic cargoes to these large and growing volatility and slowing global demand. Victor Tanevski in Sydney. That scenario will impact producers of “The IEA and other respected analysts markets. Coal remains the most-used source The group’s retail business doubled Adani estimated in January that total costs lower-grade coal first as they feel the pinch are reporting an increase in demand for electricity generation, but the International revenue to Rs356bn ($5.1bn) in the three of bringing the coal to port via rail would of competition from lower-cost miners like for seaborne thermal coal, particularly Energy Agency (IEA) expects renewables to months to December 31 while earnings be- be A$54 a tonne ($39). Based on current Indonesia and renewable or cleaner fuels. from Indian and South-East Asia, which overtake coal as the most important power fore interest and tax more than tripled to market prices, the selling price for the “The boom period for Australian thermal Carmichael is well-placed to meet.” generation source by the mid-2020s. Rs15bn. Gulf Times Saturday, May 11, 2019 3 BUSINESS

India orders anti-trust probe of Google for alleged Android abuse

Reuters complaint and ordered its investigation A Google spokesman said Android has Google Search and its Chrome browser, It remains possible that the CCI’s “They can either change their conduct New Delhi unit to launch a full probe, one of the enabled millions of Indians to connect to together with its Google Play app store, investigations unit could clear Google of in India voluntarily or let CCI investigate. sources with direct knowledge of the the internet by making mobile devices on Android devices, giving it an unfair any wrongdoing. Voluntary change in conduct may matter said. more aff ordable. advantage. The amount of fine that can be im- have an impact on the quantum of pen- India’s antitrust watchdog has ordered That decision, which was confirmed by Google looked forward to work- Google has appealed the order but, posed on Google if the CCI rules against alty, if it’s imposed,” said Shahi. an investigation into Alphabet Inc’s the second source, has not been previ- ing with the CCI “to demonstrate how in a bid to quell EU antitrust concerns, it was not immediately clear. The Indian investigation, however, unit Google for allegedly abusing the ously reported and the order calling the Android has led to more competition and last month said its Android device users The Indian regulator has powers to is not the only antitrust trouble for the dominant position of its popular Android full investigation was not made public. innovation, not less”, the spokesman said in Europe would be able to choose rival impose a penalty of up to 10% of the rel- Mountain View, California-based com- mobile operating system to block rivals, “It is a strong case for the CCI, given in a statement. browsers and search engines. evant turnover of a company in the last pany in its key market. two sources aware of the matter told the EU precedent,” said the first source. Reuters could not establish who filed Once a user downloads a rival search three financial years if it is found to have Last year, the CCI imposed a fine Reuters. “The CCI has (preliminarily) found Google the complaint, which involves more than app, it also prompts them to change their abused its dominant position. of Rs1.36bn ($19.46mn) on Google for The Competition Commission of abused its dominant position.” one person. default search engine in their Google In that case, Google’s earnings linked “search bias” and abuse of its dominant India (CCI) last year started looking into The probe would be completed in The precise details of the complaint Chrome browser, if they so wish. to its web browser and search engine position. the complaint, which is similar to one about a year and Google executives against Google in India could not be de- Android, used by device makers for could be considered to assess the fine, It also found Google had put its com- Google faced in Europe that resulted in would likely be summoned to appear termined, but sources have told Reuters free, features on about 88% of the world’s New Delhi-based antitrust lawyer Gautam mercial flight search function in a promi- a €4.34bn ($5bn) fine on the company, before the CCI in coming months, the it is on the exact same lines as the case smartphones. Shahi said. nent position on the search results page. Reuters reported in February. source said. filed against the company in Europe. In India, about 99% of the smart- Google does not disclose its India Google appealed against that order, In mid-April, the CCI decided there The CCI did not respond to a request In the EU case, regulators said Google phones sold this year used the platform, earnings from its web browser or search saying the ruling could cause it “irrepara- was merit in the accusations made in the for comment. forced manufacturers to pre-install Counterpoint Research estimates. engine. ble” harm and reputational loss.

Philippines raises $842mn Japanese economy likely from euro bonds sale shrank on weak exports

Reuters Reuters Manila Tokyo

he Philippine govern- apan’s economy likely contracted ment raised €750mn slightly in the fi rst quarter as cor- T($842.33mn) in eight-year Jporate and consumer spending euro-denominated bonds in an weakened, a Reuters poll showed yes- off ering that was six times over- terday. subscribed, a senior fi nance of- Exports also deteriorated amid trade fi cial said yesterday. disputes and weaker global demand, The euro bonds issue, which hurting the trade-reliant economy. was the country’s fi rst in 13 years, Gross domestic product (GDP) is ex- had a coupon of 0.875% and of- pected to have fallen 0.2% in January- fers 70 bps over benchmark, Na- March on an annualised basis, the poll tional Treasurer Rosalia De Leon of 18 economists showed, after it ex- said. The off er attracted strong panded 1.9% in the fourth quarter last demand even after the Philip- year. pines, one of Asia’s most active That would translate into a fl at read- sovereign bond issuers, posted a ing on a quarter-on-quarter basis, weaker-than-expected growth after the economy grew 0.5% in the in the fi rst quarter, De Leon said. October-December quarter, the poll Weak exports and farm out- showed. put and a delay in the approval “Firms likely postponed their capital of this year’s budget slowed the spending on worries about the global Philippine economy’s annual economic slowdown and uncertainty growth to 5.6% in the March over trade talks such as between the quarter, much weaker than the United States and China,” said Kentaro economists’ 6.1% forecast and Arita, senior economist at Mizuho Re- the previous quarter’s 6.3%. search Institute. The government raised more “We expect consumer spending de- than the original target of clined as their sentiment deteriorated €500mn after orders reached al- led by factors such as rises in food pric- most €3bn, De Leon added. es.” Capital spending likely fell 1.7% in Manila is diversifying its the fi rst quarter after 2.7% growth the funding sources, she said. previous quarter, the poll found. It is also in the process of ar- Private consumption, which ac- ranging its second off ering of counts for about 60% of GDP, was seen Panda bonds in China’s domes- down 0.1% for the quarter, after rising tic market and is keen to issue 0.4% in October-December. more yen-denominated “samu- External demand – or exports minus rai” bonds. Books for its planned imports – was still expected to add 0.3 A freighter is anchored at the international container pier at Tokyo port. Japan’s economy likely contracted slightly in the first quarter as corporate and consumer spending 2.5bn yuan ($367.04mn) issue of percentage point to growth in the fi rst weakened, a Reuters poll showed yesterday. three-year Panda bonds are due quarter, the poll found, after it sub- to open next week, according to tracted 0.3 percentage point from GDP will grow moderately but they will lose US-China trade war, which has dis- over external demand in the second ance is expected to show a ¥3.16tn capital markets publication Ref- growth in the previous quarter. momentum on the global economic rupted global supply chains. half of the year. ($28.80bn) surplus in March from initiv IFR. Analysts say a drop in imports due slowdown,” said Akane Yamaguchi, Sluggish demand for electronic Japan ships parts and heavy machin- ¥2.68tn in February, thanks to in- The Philippines is raising to weak domestic demand was larger researcher at Daiwa Institute of Re- gadgets has also hit its hi-tech exports. ery to manufacturers in China. come gains from overseas investment, funds to help fi nance its 3.7tn than a decline in exports, which led search. Like other Asian exporters, Ja- Yesterday, the US sharply raised tar- The Cabinet Offi ce will release the analyst said. The government will an- pesos ($70.92bn) budget this Japan’s net exports to improve for pan has been hit by China’s economic iff s on Chinese goods and China said it GDP data on May 20 at 8:50am Japan nounce current account balance data year. January-March.“We project exports slowdown and the 10-month-long would retaliate, adding to uncertainty time. Japan’s current account bal- at 8:50am on May 14. China’s EV bubble draws parallels to dot-com era

Bloomberg able,” Lian said. Shares in the electric carmaker rose Beijing as much as 5% in Shanghai before trading up 1.7% at 9.57 yuan as of 11:30am local time. BAIC Motor Corp, the publicly traded unit of hina’s electric-vehicle market is so over- BJEV’s parent and also a shareholder of BJEV, rose as crowded it’s starting to resemble the dot-com much as 3.2% in Hong Kong. Cbubble that burst at the turn of the century, Lian has reason to be confi dent. the industry’s top producer warned, sounding the BJEV is a unit of Beijing Automotive Group Co, or latest alarm for an market stacked with about 500 BAIC, the state-owned behemoth that makes Mer- players. cedes-Benz and Hyundai cars in China. There are many similarities between China’s EV Including micro EVs, BAIC has topped China’s pas- market today and the crash two decades ago, when senger EV market for two straight years, accounting all kinds of random companies sought to become in- for 19% of sales in 2018, according to estimates at ternet success stories, Lian Qingfeng, executive vice Sanford C Bernstein. president at Beijing Electric Vehicle Co, said at the Excluding those tiny cars, it ranked second af- company’s Beijing headquarters on Wednesday. ter Warren Buff ett-backed BYD Co. After billions As many as 80% of the current startups could dis- of dollars were poured into the industry in China – appear, with a big shakeout coming within a couple BloombergNEF estimates startups raised nearly $8bn of years, he said. last year alone – only 20 to 30 vehicle manufacturers BAIC’s Arcfox GT Concept electric sports car at the may survive, Lian said. Shanghai Auto Show in April. There were 486 EV manufacturers registered in For years, generous government policies and ample China as of March, more than triple the number of funding turned China into a mecca for entrepreneurs two years ago. seeking to become the next Elon Musk, transforming To gain an edge over rivals, BJEV has been explor- the country into the world’s largest market for bat- ing approaches to help consumers charge cars more tery-powered vehicles – by a large margin. easily. But as the government begins to pull back on On top of the 75,000 charging poles designated for handouts and traditional carmakers get serious about BJEV’s customers and 290,000 public charging spots making electric cars, pressure is building on many of nationwide, the company established 139 battery- these startups to come up with sustainable business swap stations that it said enables motorists to install plans. fully charged packs in 90 seconds. “Some of the automakers may be eliminated in- BJEV is working to develop more models suitable tensively by 2021 due to the lack of core strength such for battery-swapping, and it welcomes collaboration as capital shortages or the failure to pass ‘live or die’ with other carmakers, such as NIO Inc, on that front, tests,” Lian, 39, said. “Speculators will be squeezed Lian said. out during the process, while the pressure to survive The BAIC unit, which has focused on making pure- will help competitive companies emerge as the true electric cars, is expanding its lineup to include fuel- leaders.” cell cars, and it will test some vehicles during the BJEV will be among the last companies stand- Beijing Winter Olympics in 2022, Lian said, without ing because “the pressure we are facing is manage- providing more details. Gulf Times 4 Saturday, May 11, 2019 BUSINESS

Japanese wage fall Sinopec, CNPC skip Iran overshadows spending growth

Reuters oil purchases for May Tokyo Reuters The sources said they did not know apan’s household spending Singapore how long the suspensions will last. rose more than expected in Both Sinopec and CNPC declined to JMarch but real wages tum- comment. bled the most in nearly four hina Petrochemical Corp (Sinopec The National Iranian Oil Company years, dashing hopes consumer Group) and China National Petro- (NIOC) did not immediately respond to sector activity may soften the Cleum Corp (CNPC), the country’s an e-mail from Reuters seeking com- blow from external factors such top state-owned refi ners, are skipping ment. as global trade confl icts. Iranian oil purchases for loading in May The two fi rms took a similar move last The data add to recent weak after Washington ended sanction waivers October by skipping shipments for No- signs in the export-reliant to turn up pressure on Tehran, three peo- vember, before Washington reimposed economy, which has been hit by ple with knowledge of the matter said. sanctions on Iran’s oil exports to push the slumping shipments to China The United States has not renewed any Islamic Republic to renegotiate a deal to and soft factory output, and cast exemptions from sanctions on Iran, tak- stop its nuclear and ballistic missile pro- doubt on the Bank of Japan’s ing a tougher line than expected on the grammes and curb its regional infl uence. view that growth will rebound in expiry of the waivers. They later resumed bookings after the the second half of this year. The waivers were granted last Novem- US granted waivers to China and other Fading recovery prospects ber to buyers of Iranian oil. seven global clients of Iranian oil, and were among key topics of debate China is Iran’s largest oil customer purchased additional cargoes to make up at the BoJ’s rate review in April, with imports of 475,000 barrels per day the delayed shipments, according to the with one board member warning (bpd) in the fi rst quarter of this year, ac- third source and trade fl ow data. that a scheduled sales tax hike in cording to Chinese customs data. “There are no nominations so far...but October and soft global demand Two of the sources said Sinopec and companies are trying to fi nd some solu- could push the country into re- CNPC have skipped bookings for cargoes tion, such as off ering to top up volumes in cession, a summary of the meet- loading in May as the companies were later months,” said the source. ing showed yesterday. worried that taking oil from Iran could Sinopec agreed in 2012 to lift an aver- “Given the current level of invoke US sanctions and cut them out of age of about 265,000 bpd oil from Iran in the unemployment rate, wages the global fi nancial system. a long-term deal that expires end of 2019. should be growing by around A third source said Sinopec, who buys While Beijing has criticised the uni- 1% and we expect a rebound the majority of China’s Iranian oil im- lateral US sanctions on Iran and the end in working hours to provide a ports, does not wish to breach a long- to the exemptions, companies are erring tailwind over coming months,” term supply contract but has opted to on the side of caution unless they receive said Marcel Thieliant, sen- suspend booking new cargoes for now a specifi c government mandate to keep ior Japan economist at Capital due to the sanction worries. ordering oil from Tehran, the fi rst two Economics. All of the people with knowledge of the sources said. “But as economic activity re- matter requested anonymity due to the CNPC, whose Iranian oil comes mostly mains weak and the labour mar- sensitive nature of the topic. from its investments at two Iranian oil ket slackens, we expect wage Of the fi ve supertankers that loaded fi elds, is also skipping imports for this growth to keep falling short of Iranian crude in April for China, two have month, said one of those sources. last year’s strong gains.” discharged, while another two are wait- “For now it’s just not worth the risks as Household spending gained ing off Ningbo and Zhoushan in eastern the volume is very small in (the compa- 2.1% from a year earlier, govern- China to discharge, according to Refi nitiv ny’s) overall purchases,” said the source, ment data showed yesterday, ris- An employee walks past oil tanks at a Sinopec refinery in Wuhan, Hubei province. Sinopec, who buys the majority of data and Refi nitiv analyst Emma Li. adding that CNPC is entitled to lift an av- ing for the fourth straight month China’s Iranian oil imports, does not wish to breach a long-term supply contract but has opted to suspend booking A fi fth tanker is heading to Shuidong in erage of 2mn barrels, about 67,000 bpd, and beating market forecasts for new cargoes for now due to the US sanction worries. southern Guangdong province. of oil from its investment a month. a 1.7% increase.

CORPORATE RESULTS British Airways owner says quarterly net profits tumble

Enbridge has been working on replacement pounds ($14.30mn) from 26mn pounds last year. works on its Line 3 pipeline project that would The company, whose chief executive off icer run from Alberta to Wisconsin and connect to Jennifer Fox departed suddenly in September pipelines carrying crude to refineries in the after just three months in the role, said its search United States. for a permanent top boss was underway. Construction costs for the project were tracking The operator of the Millennium, Grand below budget in Canada and above budget in Millennium, Copthorne and Kingsgate hotels the US due to permitting delays in Minnesota, has flagged 2019 as another challenging year, the company said. with significant capital-heavy projects underway Adjusted earnings rose to C$1.64bn ($1.22bn) in and several large hotels earmarked for major the first quarter ended March 31, from C$1.38bn renovations. in the year-ago quarter. “Despite the uncertainties and challenges in the On an adjusted per share basis, the company global economy, we remain focused on making earned 81 Canadian cents, while analysts’ on the best use of our hospitality assets,” Kwek average had expected 72 Canadian cents, Leng Beng said in a statement. according to IBES data from Refinitiv. Group revenue per available room was down Telefonica 0.9% at 70.01 pounds for the quarter ended March 31, while revenue fell 4% to 215mn pounds Spain’s Telefonica posted a rise in first-quarter on a constant currency basis. operating income yesterday and reiterated Ongoing renovation at its Mayfair hotel in revenue and margin growth guidance of about London had already lowered revenue by 20mn 2% over the full year. pounds in 2018. It is looking to rebrand and Large telecoms operators across Europe are open the hotel again by mid-2019. battling to maintain growth prospects in the “The group is prioritising the refurbishment of face of strong competition from low-cost rivals our key gateway city properties to reposition at a time when they are having to invest heavily our hotels, whilst seeking to minimise the short- in next-generation mobile networks and fibre term negative impact on our trading results,” broadband. Leng Beng added. Telefonica said revenue growth trends had Sabanci Holding improved in the first quarter. Organic growth – adjusted for factors including foreign exchange Turkish conglomerate Sabanci Holding said rates, new accounting rules and capital gains yesterday its net profit stood at 1.06bn lira – was 3.8%. ($174mn) in the first quarter, edging down Chief executive Jose Maria Alvarez Pallete slightly from 1.07bn a year earlier. had said in February that the company’s 2019 In a filing to the Istanbul stock exchange, it said guidance was “prudent” and implied margins its sales rose to 4.3bn lira in the first quarter IAG, the parent group of British Airways and Marriott International quarter, driven by a 1.5% increase in room would remain stable. from 3.4bn lira in the same period the previous Spanish carrier Iberia, reported yesterday a rates. Also, the company reaff irmed its full-year Telefonica is Europe’s third-largest telecoms year. collapse in first-quarter net profit amid soaring Marriott International Inc yesterday reported worldwide revPAR forecast between 1% and 3%. company by market value, behind Deutsche JD.com fuel costs and fierce competition. a better-than-expected quarterly profit, as the The company raised its full-year 2019 adjusted Telekom and Vodafone but just ahead of profit after tax nosedived 91% to just €70mn world’s biggest hotel chain benefited from a profit forecast in the range of $5.97 per share France’s Orange. Chinese e-commerce firm JD.com’s revenues ($78mn) in the first three months of the year lower eff ective tax rate and higher room prices. to $6.19 per share, from a previous forecast of Adjusted operating income before depreciation grew at their slowest pace on record in the from €794mn in the first quarter of 2018, IAG An expanding US economy has driven demand $5.87 per share to $6.10 per share, partly due to and amortisation (OIBDA) rose 1% on an organic first quarter as China’s tech giants start to tap revealed in a results statement. for corporate travel, benefiting the owner of a lower eff ective tax rate. basis to €4.26bn ($4.79bn). out their existing user bases, though its 21% Fuel costs rose 15.8% in the reporting period and Ritz-Carlton and St Regis luxury hotel brands. On an adjusted basis, the company earned $1.41 OIBDA was up 10.3% on a reported basis partly expansion marginally beat analysts’ forecasts. revenues were up nearly 6% to €5.3bn. However, an increase in existing tariff s on per share, beating the average analyst estimate due to new accounting rules. Underlying OIBDA China’s leading Internet companies are trying A key industry measure of performance, $200bn worth of Chinese goods to 25% from of $1.34 per share, according to IBES data from came in at €3.730bn, compared with a €3.739bn to find fresh areas of growth after saturating passenger unit revenue per available seat 10% yesterday may threaten global economic Refinitiv. Marriott’s profit beat was helped by a average of analyst estimates provided by the the market for their core products and services, kilometre, slid 0.8% on the back of increased growth in the quarters ahead, aff ecting travel lower tax rate of 13%, against an expected rate company. which has led to a hit on profitability as they market capacity. demand, analysts have warned. of 21%. The new accounting rule changes the treatment invest in new sectors. Demand was also dented by the later timing of Marriott said its occupancy rate fell 0.8% in Revenue rose marginally to $5.01bn in the of leases for assets such as phone masts, JD.com, which operates chiefly as an online Easter compared with 2018. North America, its biggest market, while room quarter, but was below analysts’ estimates of arrangements that telecoms often rely on to marketplace, most notably for consumer IAG, which also owns Irish airline Aer Lingus, prices increased by 2%, resulting in revenue per $5.11bn. manage their networks. electronics, first achieved positive net income in added that operating profit before exceptional available room (revPAR) rising 0.8% in the first Shares of the company fell 3% to $131.50 in Telefonica said it had shaved 1.7% off its large early 2017, about three years after it listed. items slid 60% to €135mn. quarter ended March 31. premarket trading. debt pile, built from heavy investment in However, it has struggled to maintain “In a quarter when European airlines were RevPAR, a key measure of a hotel’s financial Up to Thursday’s close, the stock had risen its networks, leaving it at €40.4bn. It used a profitability. significantly aff ected by fuel and foreign performance, is calculated by multiplying the 24.8% this year, outperforming an 18.4% diff erent calculation from previous quarters, Martin Bao, who tracks China’s tech sector exchange headwinds, market capacity average daily room rate by occupancy rate. increase in the Dow Jones US Consumer to exclude the eff ect of cash flow hedges at ICBC International, said the company has impacting yield and the timing of Easter, we Asia Pacific, Marriott’s large market outside Services index. and factor the new accounting rules into the exhausted its core base of shoppers in first-tier remained profitable,” said chief executive Willie North America, gained in both occupancy and Enbridge comparison. Chinese cities and has to find new customers in Walsh in the earnings release. room rates, with occupancy rising 1.9% and Millennium rural China. The airline repeated that it expects operating rates increasing by 0.5% in the quarter. Enbridge Inc, Canada’s largest pipeline operator, JD diff erentiates itself from rivals in China profit to be flat in 2019, owing partly to the high Marriott results, aided by lower taxes, were seen beat analysts’ estimates for quarterly profit Britain’s Millennium & Copthorne Hotels Plc said by operating an in-house logistics team cost of kerosene or jet fuel. as “unspectacular” by an analyst, who said the yesterday, as it benefited from transporting yesterday group revenue per room fell in the and warehousing unit and carrying its own The IAG results came one week after Dutch- numbers were unlikely to cheer the investors. more oil and gas across its pipelines. first quarter, as ongoing renovations kept its inventory. French carrier Air France-KLM logged “Despite these positives, the quarter is likely not The company said it transported 2.7mn barrels major hotels in London and Singapore partially In contrast, rival Alibaba Group Holding deepening first-quarter net losses as it also enough to push the shares higher in the current of crude oil per day (bpd) on its key Mainline or fully closed. Ltd outsources its logistics to third-party buckled under the pressure of higher fuel costs market context,” Jeff eries analyst David Katz system across Canada and the United States The company, 65% owned by Singaporean companies, though it owns stakes in many of and competition. wrote in a note. during the first quarter, up from 2.6mn bpd in billionaire Chairman Kwek Leng Beng’s City them. Unlike JD, it makes money primarily via Marriott’s worldwide revPAR rose 1.1% in the the year-ago quarter. Developments, said profit before tax fell to 11mn advertising, rather than commissions on sales. Gulf Times Saturday, May 11, 2019 5 BUSINESS

India’s Sensex Asia markets rise but traders declines as US tariffs on China on edge as tariff s are hiked come into force AFP Hong Kong Bloomberg Mumbai hanghai led gains across most Asian and European markets yes- Sterday at the end of a torrid week Indian stocks fell as China for equities, with investors keeping pledged to retaliate after the an eye on China-US trade talks after US raised tariff s on Chinese Washington more than doubled tariff s goods as planned amid on $200bn of imports. ongoing trade talks. Equities in Asia started well as deal- The S&P BSE Sensex fell ers took heart from positive comments 0.3% to 37,462.99 in Mumbai, from Donald Trump on the prospects retreating from a gain of as for a deal but the region turned nega- much as 0.4% earlier in the tive as the threatened levies kicked in session. The gauge fell 3.9% and China vowed to hit back, saying it on the week, its biggest five- “deeply” regretted the US move. day decline since the week However, Shanghai and Hong Kong ended October 5. The NSE bounced back on hopes the economic Nifty 50 Index also fell 0.2%. superpowers will be able to reach a deal US and China trade to avert a trade war that most observers negotiators wrapped up their warn could shatter global growth and first day of talks with little batter markets. progress. Tariff s on about The tariff s came in after the fi rst day $200bn of Chinese goods of high-stakes negotiations in Wash- jumped to 25%, although ington between Chinese Vice Premier off icials from both countries Liu He, US Trade Representative Rob- are scheduled to resume talks ert Lighthizer and Treasury Secretary in Washington yesterday. Steven Mnuchin. Locally, January-March After a week in which trading fl oors earnings at Indian companies have been a sea of red, regional equi- have so far remained broadly ties were given a lift by Trump saying he in line with expectations. had received a “beautiful letter” from Of the 23 Nifty companies China’s Xi Jinping and that it was “pos- that have so far announced sible” to get a deal. results, 14 have either met or Shanghai, which lost more than 7% exceeded analyst estimates. from Monday to Thursday, ended up State Bank of India, the 3.1% at 2,939.21, while Hong Kong piled country’s largest bank by on 0.8% at 28,550.24. assets, posted a fourth- Sydney and Singapore each added quarter profit that missed 0.3%, while Seoul was up a similar all analyst estimates as amount as investors brushed off news provisions for bad loans rose that North Korea had tested a long- A pedestrian walks past an electronic screen showing Asian market indices outside a brokerage in Tokyo. Japanese shares lost 0.3% to 21,344.92 points yesterday. from the previous three- range weapon, which is likely to raise month period. The stock tensions after the breakdown of de- analyst at CMC Markets UK. frey Halley said the fact that tariff s ever manage to really share the toys and and bargain-buying, provided support however gained 2.9% as asset nuclearisation talks with the United “Which means there is a potential were to rise midway through the talks play nicely on the global stage”. to higher-yielding, riskier currencies, quality improved. Meanwhile, States. window, albeit a limited one, for an gave “precious little time to come up In worrying sign, Hu Xijin, editor- with the yuan edging higher though election hustings for the But Tokyo fi nished down 0.3% at agreement to be hammered out.” with something that satisfi es both in-chief of the Global Times – which it continues to wallow around four- national ballot are closing in 21,344.92, while Wellington, Manila, But a lot of uncertainty remains. sides”. is published by the Communist Party’s month lows. on the final stage, with only Taipei, and Mumbai also fell. “Markets will be in a holding pattern Although markets are up, “the peace People’s Daily – cited a source familiar On oil markets both main contracts two more phases of voting to “Given the deadline has now passed as we await the outcome of the meet- is fragile, and it won’t take much today with the talks as saying there is “zero” edged up, but Halley warned that failure go. The results are scheduled there is the possibility that tariff s could ing,” said Khoon Goh, head of Asia re- to panic investors into heading for the chance of a deal before yesterday. of the trade talks “would be the straw to be announced on May 23. still be avoided given that US offi cials search at ANZ Bank. “If there is a break- exit door en masse”, he added. “If it is that bad, the real suspense is that breaks the camel’s back” and send “External factors like tariff talks allowed for goods currently in transit to down and the tariff s go up, then we will Halley also warned that while Trump whether the two sides will continue ne- the commodity tumbling, despite US- are likely to have a lesser impact be exempt from the new tariff increas- see a risk-off tone in markets.” praised Xi’s letter it was hard “to see gotiations after Friday,” Hu said. Iran tensions and Venezuela’s political on India,” said AK Prabhakar, es,” said Michael Hewson, chief market OANDA senior market analyst Jef- how either of these two presidents will The slightly improved sentiment, crisis. head of research at IDBI Capital Market Services Ltd. “Liquidity conditions, outflows from equity mutual funds and signs of slowing consumer demand are key areas of concern for us as we are a consumption-led AB InBev’s Asia business fi les for $5bn IPO economy. The election is, of course, the big focus with only 13 days to go for results.” Reuters in its Asian operations to create a $40bn-$50bn would be a reasonable proposed dividend and said payouts Corona. At $5bn, the IPO, which is Twelve of 19 sector indexes Hong Kong separate business. valuation for the Asia-Pacific busi- will only grow slowly. slated for the second half of the year compiled by BSE Ltd fell, led by Budweiser Brewing Company ness. The Belgium-based company ac- according to sources, could be the a measure of metal companies. APAC Ltd, AB InBev’s Asian busi- AB InBev aims to spin off the busi- knowledged that a minority stake largest in Hong Kong this year, where Tata Consultancy Services Ltd he Asia business of Anheuser- ness, did not mention the financial ness to reduce its net debt, which listing would accelerate this process, a flood of companies looking to go contributed the most to the Busch InBev, the world’s larg- details of the offering in the draft stood at $102.5bn at the end of De- but said its commitment to reduce public has slowed to a trickle. index decline, falling 1.7% Test brewer, filed yesterday a prospectus with the Hong Kong cember, a figure inflated by its late the multiple to below 4 by the end of Companies have raised $4.5bn Tata Steel had the largest drop, draft prospectus for an initial public Stock Exchange. 2016 purchase of nearest rival SAB- 2020 was not dependent on it. through Hong Kong listings so far sliding 6.2% after Thyssenkrupp offering (IPO), which two sources AB InBev’s Asia-Pacific region, Miller for around $100bn. The company said the main merit this year, lagging the $12.1bn raised AG said German regulators with knowledge of the matter said whose main markets are China and It wants to bring its net debt/ of a Hong Kong listing would be to on the New York Stock Exchange and were likely to block its steel JV could be worth at least $5bn. Australia, last year made up 18% of EBITDA (earnings before interest, create a champion in the Asia-Pa- the $9.4bn raised on Nasdaq, Refini- with Tata. Belgium-based AB InBev, whose group volume and 14% of underlying tax, depreciation and amortisation) cific, where sales are still growing tiv data as of Friday showed. State Bank of India provided the beers include Stella Artois and Bud- operating profit. ratio to around two times from a and increasingly wealthy consumers JPMorgan and Morgan Stanley are biggest boost to the index and weiser, said on Tuesday that it was Its revenues were $8.47bn. multiple of 4.6 at the end of last year. are trading up to higher-margin pre- the joint sponsors of the proposed had the largest gain. considering listing a minority stake Analysts at Jefferies have said that With that goal, it has halved its mium beers, such as its Budweiser or float.

Emerging market stocks and currencies gain IMF to help PSX recover 22% losses

Reuters Chinese shares dropped when Internews London the tariffs took effect but Karachi then recovered. The Shanghai composite index and the Emerging-market shares and blue-chip CSI300 index both akistan Stock Exchange is likely to recover 14% to currencies gained on Friday rose more than 3%. The Hang 22% from the current level driven by an IMF deal as renewed hope for progress Seng Index gained 1.6%. The Pwhich is expected by June-end, a brokerage report- in trade talks between the yuan also strengthened. ed. United States and China Stocks in Johannesburg Topline Research said the benchmark KSE 100-share overshadowed an increase in rose over 1% and the rand index of the Pakistan Stock Exchange rallied on an average tariffs for Chinese goods. advanced, as the ruling by 37% within one year after the International Monetary US President Donald Trump African National Congress Fund’s (IMF) deal based on the last three programmes. raised tariffs on $200bn of took the lead in elections for “We attribute the improvement in market sentiment Chinese goods yesterday, parliament and provincial during IMF programme to improved external account but talks between the two legislatures. situation on receipt of foreign fl ows and stabilisation on countries continued. Moscow’s MOEX index was macroeconomic front,” Topline Research said in a report. Investors were hoping they among the few losers as “Now based on the assumption that Pakistan will get would reach an agreement traders returned form a a new IMF loan soon we are maintaining our index target and avert the damage a trade market holiday. range of 40,000-45,000, providing total return of 12% to war could do to the global The rouble gained in thin 26% from here.” The index settled at 35,035 points. economy. trade. Turkey’s lira rose The country will likely enter IMF programme by June “The increase in tariffs is 1% after the central bank given the ongoing discussions with the IMF team and re- well expected for a few days suspended repo auctions and cent changes in key government positions. already, so when US raised took additional liquidity steps Topline Research said though the previous fi nance min- Pakistani stockbrokers monitor share prices at the Pakistan Stock Exchange in Karachi. Pakistan Stock Exchange is the tariffs the markets did to counter the currency’s ister was expecting $6bn to $8bn package, “we think the likely to recover 14% to 22% from the current level driven by an IMF deal which is expected by June-end, a not feel that extra surprise,” recent declines, which came size of the programme should be bigger ($10bn plus) con- brokerage reported yesterday. said Iris Pang, an economist after a decision to re-run sidering upcoming debt repayments”. at ING. Istanbul’s mayoral election. “With IMF’s support, other lending agencies will also programme is expected to include key technical bench- 10-month tax revenues show shortfall of around Rs345bn “If someone told us that In emerging Europe, Polish feel comfortable to provide funding to Pakistan,” it said. marks including net domestic assets and net international (0.9% of GDP) while budget defi cit is expected to exceed the two sides are not going stocks rose more than 1% Once the country enters IMF programme, the World Bank reserves targets, which will serve to reduce borrowing from 7% in FY19 after a gap of fi ve years.” to talk, that would be a from six-month lows. and Asian Development Bank would likely extend their sup- the central bank and increase foreign exchange reserves, The brokerage said IMF would demand rupee to be free- surprise.” Budapest’s BUX gained on port to the tune of $6bn to $8bn. “We may see major steps respectively. fl oated and “we expect the rupee to settle in the range of MSCI’s index for emerging- mixed earnings. towards fi scal, monetary and structural reforms in next few Topline Research said the government would have to Rs160-165 by Dec 2019 given expectations of REER (real market stocks rose from Currencies in the region all weeks either with or before the budget that is expected to be increase focus towards privatisation and restructuring of eff ective exchange rate) below 100”. two-month lows, led by strengthened against the announced in next few weeks,” it added. loss-making state-owned enterprises. “Further, energy “Given increased taxation measures to shore up rev- Asian shares, but were still euro. “These may include rupee devaluation/free-fl oat, fur- sector reforms and resolution of outstanding circular debt enues, reduction in subsidies and devaluation, we expect headed for their worst weekly Bond yields continued to drift ther hike in interest rates, increase in energy prices, elimi- will also likely be part of the IMF programme,” it said. infl ation to average in low double digits in FY20,” it added. performance so far this year. lower. nation of subsidies, new and more taxes, aggressive priva- “Tax revenue and budget defi cit target will likely be “We expect the central bank’s policy rates to peak at 12% tisation policy among others.” The brokerage said the IMF the sticking points in the ongoing IMF negotiations as during 2019.” Gulf Times 6 Saturday, May 11, 2019 BUSINESS

Scandal-ridden Danske Bank names new CEO

AFP Copenhagen

enmark’s biggest bank Danske Bank said yes- Dterday it had appointed Chris Vogelzang as its new CEO after his predecessor resigned in September 2018 amid a mon- ey laundering scandal. Vogelzang, from the Nether- lands, has held several manage- ment positions at Dutch Bank ABM AMRO and joins Danske Vogelzang: Big task ahead. as the bank faces criminal in- vestigations following revela- The former CEO Thomas tions of suspected money laun- Borgen resigned in Septem- dering tied to its operations in ber last year when the bank Estonia. released the fi ndings from an “He has extensive leader- investigation conducted by ship and commercial experi- the law fi rm Bruun and Hjejle, ence within banking and has which detailed a “series of ma- throughout his career managed jor defi ciencies” in the bank’s diffi cult challenges and deliv- governance and control sys- ered good results,” Karsten Dy- tems. bvad, chair of the bank’s board, Danish authorities fi led pre- said in a statement. liminary charges against the “We have a big task ahead of bank in November. us in continuing to rebuild trust According to local media and at the same time develop- reports, Danish prosecutors ing our business in pace with have fi led preliminary charges customer expectations and the against Thomas Borgen and technological development to nine other former managers at Vehicles stop at a security check point at the Paso Del Norte Port of Entry in El Paso, Texas. Slower trade between the US and Mexico since federal border off icers were recently ensure that we remain a leading Danske as part of their money- redirected to deal with a surge in migrants has been socking businesses with additional shipping costs. Nordic bank.” laundering investigation. The appointment was well The Danish prosecution au- received by markets and at thority have not confi rmed the 1030am (0830 GMT) Danske’s reports and told AFP that they shares were up over 3%. do not wish to comment on the Danske Bank is the target matter. of criminal probes in several Since October 2018, Jesper countries over some €200bn Nielsen, who previously head- ($226bn) in transfers that ed personal banking at Danske, passed through its Estonian has been serving as interim Mexico border delays branch between 2007 and 2015, CEO and will continue to do so involving some 15,000 foreign until Vogelzang takes over on clients, many Russian. June 1. seen weighing on US Not all lenders are evil, German banking startup tells customers

which is prompting more people Bloomberg to manage their accounts online. Frankfurt By emphasising the virtues of so-called impact banking, Tomor- row is also trying to diff erentiate investment, factories Germany’s latest banking upstart itself from direct competitors has a message for the millenni- such as N26, a German banking Bloomberg “The delays generate a mean- crossings in the San Diego, Tuc- watching the Mexico border the 4 1/2-hour delay at Otay als it’s trying to lure away from app backed bybnaires Peter Thiel Washington ingful direct cost for business- son, El Paso and Laredo regions situation. Mesa, California, was up from giants like Deutsche Bank AG: and Li Ka-shing that has 2.5mn es,” economist Stephen Juneau being re-assigned. President Federal Reserve Bank of Dallas 50 minutes a year before – and at We’re one of the good guys. customers across Europe. said in an e-mail. The disruption Donald Trump the next day re- President Robert Kaplan has also the end of one day, 175 trucks at Hamburg-based Tomorrow, About 4,500 people in Germany ore cargo from Mexico may have a signifi cant impact on newed threats to close the bor- cited the trade disruptions, cit- that crossing were unprocessed, which off ers free current have downloaded the Tomor- to the US is being held the fl ow of goods, as more than der. ing average daily truck crossings according to a CBP operations accounts via mobile phones, row app, which was off icially Mup at the border, ac- 86% of Mexican imports enter The Institute for Supply at El Paso falling by half to 1,500. director. promises to use customer launched two months ago. The companied by increasing evi- the US by land, and impose some Management’s factory survey While it hasn’t had a material BofA multiplied the delays by deposits to finance only sustain- company’s goal is to increase dence that such delays are dim- $5.5mn in additional costs on last week showed April con- impact on Texas, it could, “and the average hourly earnings of able projects such as renewable that number to 20,000 by the ming prospects for American US businesses each month, he ditions at the weakest since it’s something we’re watching,” production and non-supervi- energy and organic agriculture. end of 2019. “We think it’s feasi- companies. wrote in a report. October 2016, though still he told CNBC. sory workers in transportation The company claims that its ble to have around 1mn custom- Slower trade between the Trucking company Werner expansionary. The produc- “A lot of the commercial traf- and warehousing, and then mul- strategy provides an antidote ers across Europe in three to five countries since federal border Enterprises Inc said on an April tion component also fell to a fi c, we’re hearing from busi- tiplied the cost per truckload by to traditional lenders that might years,” Nureldin said. offi cers were recently redirected 25 earnings call that it expects more than two-year low, which nesses, is being impeded” he the total number of trucks that finance a new coal-fired power Tomorrow off ers current ac- to deal with a surge in migrants border crossing to be “slow for Juneau said was likely in part said. “This is aff ecting logistics crossed through each of the two plant or a genetically-modified- counts via Solarisbank AG, a has been socking businesses the foreseeable future.” because of border delays. and supply chains, not just in ports last year. food company’s expansion. Berlin-based lender that that with additional shipping costs. “Freight is still crossing the Mexico border issues “are a Texas and the Southwest, but Per truckload, delays are “We are a bank for people who allows partners to use its banking The eff ects will likely cause a border at a very slow rate by potential threat,” one uniden- also in the Midwest.” likely costing US businesses an want to change the world for the license. As part of its expansion modest headwind for second- comparable standards,” said tifi ed respondent from a ma- Juneau cited comments last additional $40 to $80, Juneau better,” co-founder Inas Nurel- plan, Tomorrow will now also link quarter nonresidential invest- Derek Leathers, chief executive chinery company said in ISM’s month by customs offi cials estimated. din, 37, said in an interview. up with Visa Inc to off er its clients ment growth – which cooled at offi cer of the Omaha, Nebraska- survey, while a computer and saying cargo processing times “Additionally, in order to An increasing number of fintechs payment cards. For each new the start of the year – and al- based company. electronic products company were multiplying at some of the maintain the current pace of are putting banking services on customer, the US company — ready helped to push a US fac- US Customs and Border Pro- said “border crossing delays busiest ports of entry. Waits at production, businesses are likely smartphones. They are trying which owns a stake in Solaris- tory gauge to a two-year low tection said March 27 that trade are slowing supplier deliver- Brownsville, Texas, were re- absorbing the unplanned cost to take advantage of branch bank — will pay for 100 trees to in April, according to Bank of processing would slow, with ies.” A transportation-equip- cently at two hours, compared which could aff ect hiring and in- closures by traditional lenders, be planted in Brazil. America Corp. as many as 750 offi cers from ment company said it’s closely with no wait a year earlier, while vestment plans,” he said. Shipping family turned money managers are now billionaires

Bloomberg mash of positions but it has done very well for Over the next 30 years, the enterprise grew off Caledonia from the company in October 300,000 pounds to the UK’s Conservative Party, London them.” into the biggest carrier of freight, mail and pas- 1987. according to data compiled by Bloomberg. A Caledonia spokeswoman said Wyatt de- sengers between ports in the British Empire. In The family walked away with £100mn in One of Wyatt’s priorities was weeding out clined to comment for this article. 1904, King Edward VII made Charles the fi rst cash and the promise of an additional £327mn. smaller positions in the fi rm’s portfolio. He also he Cayzer family dominated shipping The fi rm, which has 36% of its assets in the Baronet of Gartmore, the 10,000-acre estate Four days later, stock markets around the world redoubled its eff orts in Asia by investing in at during imperial Britain’s heyday, sur- UK, commits more than a third of its money that became the family seat in the Scottish crashed on Black Monday. British & Common- least fi ve funds that concentrated on the con- Tvived two world wars, the collapse of the to closely-held companies, including US bio- highlands. After World War II, the family reor- wealth collapsed in 1989, but the Cayzers got tinent; Asia Alternatives Management, a Hong empire and fi ghting within the family. tech fi rms and British bingo operators. An ad- ganised the business into a new entity, British their money because the debt was underwritten Kong-based private equity fund of funds with Their fortune may never have been larger. ditional 22% is wagered on listed companies, & Commonwealth Shipping Co, that eventu- by banks. Traders in London dubbed the family $12bn in assets, was Caledonia’s 10th-largest Shares of Caledonia Investments, a London- such as Microsoft Corp and soft-drink maker ally was led by Charles’s grandson Nicholas the “canny Cayzers.” holding until April. based investment fi rm that has held the family’s AG Barr Plc. It invests almost a quarter of its Cayzer. As Caledonia’s CEO, Buckley made dividends Wyatt, 50, has stayed true to the Cayzers’ wealth for more than three decades, surged to a assets in funds, especially in Asia. Capital A shy but intense man, Nicholas realised that sacrosanct, and the fi rm has increased its an- penchant for taking stakes in other investment record last month. The stock, overcoming earli- Today, a Shanghai-based private equity fi rm, the family fortune was tied to an industry on the nual payout ever since, bestowing the Cayzers fi rms. In December, Caledonia agreed to acquire er missteps, has returned 133% since the start of returned 81% to Caledonia in the fi scal year cusp of disruption, according to Uncharted Wa- with more than $200mn. But the family’s use of a 36.7% stake in Stonehage Fleming, a multi- 2013, more than double the performance of the ended March 31. ters, a history of the Cayzers by David Sinclair. a public entity to husband its own wealth proved family offi ce, for about £92mn. FTSE All-Share Index, driven by bets on money Yet the Cayzers’ de facto control of Caledonia Aviation and the advent of the container ship in an awkward arrangement, even within its own There have been some misfi res along the managers and Asian private equity. may be a drag on the stock. The company has the 1960s upended the economics of seaborne ranks. In the early years of the 21st century, way — Caledonia’s wager on Gala Bingo, an The Cayzers, with a 48.5% stake in Caledo- long traded at a steep discount to the net value freight. Meanwhile, governments of newly in- James Cayzer, the 5th Baronet of Gartmore, and online gambling outfi t, lost about a third of its nia, are worth at least $1.4bn, according to the of its assets thanks to the family’s large stake, dependent colonies had little desire to transact other relatives assailed Buckley and Caledonia value from 2015 through 2018. And Liberation Bloomberg Billionaires Index. The fi rm manages according to Stifel Financial Corp analyst An- with an enterprise so tightly bound to imperial management for poor investment choices and Group, which runs pubs and restaurants in the £2bn ($2.6bn). thony Stern. Listed rivals without this family Britain. called for changes at the top. Their rebellion UK Channel Islands, dropped 19% from 2016 The clan isn’t the only one to trade an indus- ownership dimension such as Standard Life Pri- Nicholas and family members decided to sputtered, but not before Caledonia made it through last year. trial past for money management. The invest- vate Equity Trust Plc have outperformed Cal- slowly let shipping go by not replacing old ves- easier for family members to withdraw money As unusual as their hybrid fi rm may be, the ment world is teeming with family offi ces over- edonia over fi ve years. sels with new ones, and investing the unspent from the fi rm. Cayzers, whose motto is “cautiously but fear- seeing the legacies of fortunes handed down For the Cayzers, such short-term concerns capital in other ventures. British & Common- Wyatt, a descendant of Charles’s son Ha- lessly,” have won followers. through generations. Yet Caledonia, led by chief may not matter. After all, Caledonia held on to wealth morphed into a conglomerate with in- rold, took the helm in 2010 after a stint at Close “If the market has given them pretty good executive offi cer Will Wyatt, the great-great- the Sloane Club, the members-only hotel and terests in industrial paint, real estate, timber Brothers Group, a UK merchant bank Caledonia grades for 32 years, then there must be a sig- grandson of 19th century paterfamilias Charles eatery in London’s Chelsea neighbourhood, for and British United Airways. The Cayzers parked had partly owned since 1987. His cousin Jamie nifi cant amount of comfort out there that things William Cayzer, stands out for its hybrid role. 26 years before selling it in 2017. It’s a long-term their wealth in a sleepy fi rm the family had Cayzer-Colvin heads investments in funds, will not go wrong,” said Stilpon Nestor, manag- “It’s really a family offi ce that’s publicly trad- view that was set 141 years ago by Charles Wil- scooped up in 1951: Caledonia Investments. As and another cousin, Charles Cayzer, is a board ing director of Nestor Advisors, a London-based ed,” said Per Wimmer, the CEO of Wimmer Fi- liam Cayzer, a London native who grew up near British & Commonwealth expanded under non- member and chairman of Cayzer Trust Co, corporate-governance consulting fi rm. nancial, a boutique investment bank, and head the city’s bustling wharves and went on to found family managers and became too convoluted, which oversees the family’s stake in Caledonia. “And these guys clearly have a lot of skin in of his own family offi ce in London. “It’s a mish- a shipping business, Cayzer Irvine & Co. Peter Buckley, Charles’s great-grandson, hived Since 2005, the family has contributed about the game.” Gulf Times Saturday, May 11, 2019 7 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 25,649.74 -178.62 Apple Inc 194.77 -2.96 5,727,121 S&P 500 Index 2,840.82 -29.90 American Express Co 116.91 -0.30 218,021 Nasdaq Composite Index 7,824.31 -86.28 Boeing Co/The 350.09 -1.14 358,885 S&P/Tsx Composite Index 16,178.31 -143.44 Caterpillar Inc 128.97 -1.70 350,100 Mexico Bolsa Index 42,731.74 -461.62 Cisco Systems Inc 52.33 -1.11 3,162,869 Brazil Bovespa Stock Idx 93,745.56 -1,062.29 Chevron Corp 120.39 -0.66 536,946 Ftse 100 Index 7,203.29 -4.12 Walt Disney Co/The 132.55 -0.78 705,188 Cac 40 Index 5,327.44 +14.28 Dowdupont Inc 30.91 -0.26 1,054,880 Dax Index 12,059.83 +85.91 Goldman Sachs Group Inc 200.13 -0.74 92,429 Ibex 35 Tr 9,117.50 +22.30 Home Depot Inc 192.13 -1.26 268,927 Nikkei 225 21,344.92 -57.21 Intl Business Machines Corp 133.70 -1.21 301,071 Japan Topix 1,549.42 -1.29 Intel Corp 45.56 -2.27 5,873,946 Hang Seng Index 28,550.24 +239.17 Johnson & Johnson 137.43 -0.94 327,276 All Ordinaries Indx 6,393.13 +15.80 Jpmorgan Chase & Co 111.71 -0.72 1,410,175 Nzx All Index 1,725.57 -0.94 Coca-Cola Co/The 47.72 0.68 755,136 Bse Sensex 30 Index 37,462.99 -95.92 Mcdonald’s Corp 197.90 0.09 139,209 Nse S&P Cnx Nifty Index 11,278.90 -22.90 3M Co 174.46 -0.47 251,475 Straits Times Index 3,273.50 +3.80 Merck & Co. Inc. 77.55 -1.00 855,098 Karachi All Share Index 25,693.07 -51.36 Microsoft Corp 124.82 -0.54 3,415,846 Jakarta Composite Index 6,209.12 +10.31 Nike Inc -Cl B 82.99 0.01 539,171 Pfizer Inc 40.32 -0.79 1,593,330 Procter & Gamble Co/The 104.77 0.51 528,272 Travelers Cos Inc/The 141.60 -0.16 63,181 TOKYO Unitedhealth Group Inc 238.54 0.24 255,754 United Technologies Corp 134.55 -1.69 183,477 Company Name Lt Price % Chg Volume Visa Inc-Class A Shares 158.98 -0.52 342,040 Nidec Corp 14,900.00 -0.67 1,195,700 Verizon Communications Inc 56.56 0.14 871,687 Isuzu Motors Ltd 1,443.00 0.24 3,271,100 Walgreens Boots Alliance Inc 52.73 -1.55 545,106 Unicharm Corp 3,502.00 0.00 1,791,200 Traders work at the Frankfurt Stock Exchange. The DAX 30 gained 0.7 % to 12,059.83 points yesterday outperforming Walmart Inc 100.34 0.80 641,267 Nomura Holdings Inc 382.10 -1.06 18,889,800 its European peers largely thanks to a whopping surge in Thyssenkrupp shares which rose over 20% after the steel Exxon Mobil Corp 75.78 -1.29 1,552,526 Daiichi Sankyo Co Ltd 5,522.00 0.58 2,121,400 conglomerate said it was dropping its merger plans with Tata of India. Subaru Corp 2,453.00 -2.66 6,508,700 Sumitomo Realty & Developmen 3,979.00 -1.09 1,649,900 FTSE 100 Ntt Docomo Inc 2,412.50 0.12 6,359,200 Sumitomo Metal Mining Co Ltd 2,978.50 -5.56 2,723,700 Company Name Lt Price % Chg Volume Orix Corp 1,585.00 -0.66 6,673,700 Asahi Group Holdings Ltd 4,628.00 -2.20 2,016,000 Anglo American Plc 1,892.80 -0.31 3,127,685 Keyence Corp 66,690.00 -0.12 417,800 Associated British Foods Plc 2,510.00 0.24 375,305 Mizuho Financial Group Inc 167.30 -0.12 108,084,100 Europe markets see hope Admiral Group Plc 2,057.00 0.69 812,414 Sumitomo Mitsui Trust Holdin 3,747.00 -0.53 1,401,400 Ashtead Group Plc 2,028.00 1.15 998,829 Japan Tobacco Inc 2,470.00 0.10 9,653,300 Antofagasta Plc 835.60 -0.17 1,420,846 Sumitomo Electric Industries 1,387.00 -0.18 2,713,500 Auto Trader Group Plc 572.20 -1.41 1,740,510 Daiwa Securities Group Inc 499.50 0.18 6,490,400 Aviva Plc 415.10 0.48 7,070,895 Softbank Group Corp 10,925.00 -5.41 12,952,100 Astrazeneca Plc 5,692.00 -2.30 2,146,186 for trade war climbdown Panasonic Corp 915.70 -6.50 22,309,400 Bae Systems Plc 469.30 -0.19 3,690,390 Fujitsu Ltd 7,289.00 0.69 1,224,800 Barclays Plc 157.52 0.42 16,590,822 Central Japan Railway Co 22,140.00 0.84 461,400 British American Tobacco Plc 2,839.00 -1.61 3,205,948 President Xi and President Trump growth, and a stronger trade surplus Nitori Holdings Co Ltd 12,910.00 0.58 372,500 AFP Barratt Developments Plc 601.80 0.30 2,806,015 need one,” he added. for Germany. Ajinomoto Co Inc 1,865.50 8.11 3,843,800 London Bhp Group Plc 1,743.00 0.54 3,091,137 The tariff s news failed to derail mar- Frankfurt’s Dax index outperformed Daikin Industries Ltd 13,625.00 2.91 1,425,500 Berkeley Group Holdings/The 3,710.00 0.35 262,700 Mitsui Fudosan Co Ltd 2,515.00 -0.26 3,795,500 kets in Asia and Europe, after Trump its European peers largely thanks to British Land Co Plc 570.00 -2.40 3,952,968 Ono Pharmaceutical Co Ltd 1,957.00 1.93 3,427,100 ost European equities re- stated also that he had received a a whopping surge in Thyssenkrupp Bunzl Plc 2,125.00 -2.97 1,327,460 Toray Industries Inc 701.80 -0.35 6,331,100 bounded yesterday as in- “beautiful letter” from China’s Presi- shares which rose over 20% after the Bp Plc 524.20 -0.25 23,348,467 Bridgestone Corp 4,198.00 -0.33 3,069,700 vestors bet on Beijing and dent Xi Jinping – and that it was “pos- steel conglomerate said it was drop- Burberry Group Plc 1,921.50 1.16 721,169 M Sony Corp 5,408.00 1.46 9,821,200 Bt Group Plc 208.80 -0.93 26,082,795 Washington ending their trade war, sible” to get a deal. ping its merger plans with Tata of In- Astellas Pharma Inc 1,444.50 0.45 7,592,100 Coca-Cola Hbc Ag-Di 2,732.00 -0.40 450,542 mirroring earlier gains in Asia, but Wall “Xi needs a deal to keep economic dia. Hoya Corp 7,724.00 0.27 1,608,000 Carnival Plc 3,949.00 -0.23 371,011 Street investors seemed more sceptical growth on the road, because the on- Meanwhile, the British pound was Nippon Steel Corp 1,867.50 -0.27 4,634,600 Centrica Plc 92.60 -1.70 38,890,601 Suzuki Motor Corp 4,803.00 -2.44 2,487,300 of the chances for any 11th hour break- going credibility and legitimacy of his little changed yesterday after data Compass Group Plc 1,707.00 0.15 3,023,449 Nippon Telegraph & Telephone 4,745.00 0.64 3,974,700 through. tenure and the Communist Party more showed the UK economy got a boost Croda International Plc 5,070.00 0.10 215,876 Jxtg Holdings Inc 523.20 1.34 21,192,000 The contrasting views refl ected rat- generally rests on jobs and prosperity,” ahead of a Brexit that never came, Crh Plc 2,455.00 -0.45 1,125,807 Murata Manufacturing Co Ltd 5,030.00 1.72 5,468,400 Dcc Plc 6,590.00 -0.12 99,296 tled investor nerves on the day the US said Mould. with traders doubtful Prime Minister Kansai Electric Power Co Inc 1,265.50 1.08 2,953,700 Diageo Plc 3,245.50 0.15 2,566,352 doubled its tariff s on a host of Chinese “Trump needs one because he seems Theresa May can reach a deal with the Denso Corp 4,429.00 -0.94 2,869,400 Direct Line Insurance Group 313.10 0.26 3,840,470 goods, dealers said. to measure his success by where the opposition on how to leave the Euro- Sompo Holdings Inc 4,233.00 0.52 1,651,900 Evraz Plc 586.40 0.51 2,140,843 Dow Jones Industrials is trading and pean Union. Daiwa House Industry Co Ltd 3,006.00 0.17 2,315,200 Paris and Frankfurt closed higher, Experian Plc 2,183.00 0.37 913,608 Dai-Ichi Life Holdings Inc 1,533.50 -1.00 5,818,900 while London ran into a late bout of because he has an election to fi ght in Sterling did rise towards the end of Easyjet Plc 1,034.00 -0.14 1,263,418 Mazda Motor Corp 1,263.00 -2.28 7,438,300 selling to end a touch lower. 2020. the European trading session, but that Ferguson Plc 5,514.00 2.87 378,785 Komatsu Ltd 2,420.50 1.47 10,111,200 “Winning that will be a lot harder was largely down to broad dollar weak- Fresnillo Plc 724.80 -0.33 893,983 Paris’s CAC 40 was up 0.3 % at West Japan Railway Co 8,274.00 0.57 694,300 Glencore Plc 280.85 0.05 21,382,746 5,327.44, Frankfurt’s DAX 30 gained if the US economy is slowing down or ness. Kao Corp 8,430.00 -1.38 2,130,300 Glaxosmithkline Plc 1,502.00 -1.07 5,308,038 0.7 % to 12,059.83 and London’s FTSE even turning down,” the analyst added. Britain’s economy grew at a quarterly Mitsui & Co Ltd 1,657.00 1.01 7,711,800 Gvc Holdings Plc 597.20 -0.40 2,282,150 100 was down 0.1 % at 7,203.29 points In Asia, Shanghai led gains at the rate of 0.5% in the fi rst quarter of 2019, Daito Trust Construct Co Ltd 12,810.00 -4.51 921,500 Hikma Pharmaceuticals Plc 1,750.50 0.11 369,069 Otsuka Holdings Co Ltd 3,878.00 0.94 1,269,900 at close yesterday. end of a torrid week for equities, with in line with the reading expected by the Hargreaves Lansdown Plc 2,298.00 1.01 452,843 Oriental Land Co Ltd 12,400.00 0.45 615,200 Across the Atlantic meanwhile the investors nevertheless keeping a eye on bank of England, as well as by private- Halma Plc 1,756.00 0.37 1,133,833 Sekisui House Ltd 1,750.00 0.72 2,818,300 Dow index was down by more than 300 the ongoing China-US trade talks. sector economists in a Reuters poll. Hsbc Holdings Plc 652.00 0.02 10,261,994 Secom Co Ltd 9,316.00 1.39 692,100 Hiscox Ltd 1,565.00 0.38 467,076 points in the late New York morning. Both Shanghai and Hong Kong Business surveys have shown manu- Tokio Marine Holdings Inc 5,460.00 0.13 1,912,400 Intl Consolidated Airline-Di 498.60 1.90 10,966,173 “US stocks are extending a weekly bounced back on hopes the economic facturers built up stocks of goods in Aeon Co Ltd 1,963.00 0.77 3,397,700 Intercontinental Hotels Grou 4,850.00 -0.92 497,482 drop, which is poised to be the larg- superpowers will be able to reach a deal case the country left the UK without a Asahi Kasei Corp 1,112.50 -0.36 6,560,400 3I Group Plc 1,042.50 -0.76 1,375,342 est of the year, with the US following to avert a trade war that most observers transition deal at the end of March. Kirin Holdings Co Ltd 2,254.00 -6.59 4,831,300 Imperial Brands Plc 2,164.50 -2.83 3,081,670 Marubeni Corp 713.90 -0.98 10,380,700 through on its threat to increase tariff s warn could shatter global growth and Year-on-year GDP growth picked up Informa Plc 750.00 0.00 1,943,822 Mitsubishi Ufj Financial Gro 523.50 -0.49 62,135,000 on Chinese goods as the two sides con- batter markets. to 1.8% in early 2019 from 1.4% in the Intertek Group Plc 5,124.00 1.99 202,509 Mitsubishi Chemical Holdings 736.10 -0.47 9,285,900 tinue talks today in Washington,” the But China has vowed to hit back at last three months of 2018, Britain’s Of- Itv Plc 119.35 0.51 15,802,091 Fanuc Corp 19,150.00 0.79 1,515,000 Johnson Matthey Plc 3,159.00 0.80 362,569 Charles Schwab brokerage said. the tariff s hike, saying it “deeply” re- fi ce for National Statistics said on Fri- Fast Retailing Co Ltd 65,400.00 0.66 1,297,000 Kingfisher Plc 243.00 -0.49 5,428,592 In a brief respite from trade woes, gretted the US move. day. This was its highest since the third Ms&Ad Insurance Group Holdin 3,329.00 0.03 1,238,000 Land Securities Group Plc 903.20 -1.05 1,884,274 Uber kicks off its Wall Street listing The tariff s came in after the first day quarter of 2017 and again in line with Kubota Corp 1,550.50 -1.02 4,903,800 Legal & General Group Plc 271.00 0.15 8,966,716 of high-stakes negotiations in Wash- economists’ forecasts. Seven & I Holdings Co Ltd 3,698.00 0.30 3,450,100 yesterday with a vast share off ering Lloyds Banking Group Plc 61.05 0.26 124,663,794 Inpex Corp 1,000.00 0.04 5,702,400 that values the ride-hailing giant at ington between Chinese Vice Premier Momentum in the British economy London Stock Exchange Group 5,072.00 -0.08 297,840 Resona Holdings Inc 446.60 -1.17 14,249,500 more than $82bn. Liu He, US Trade Representative Rob- has been stymied by uncertainty re- Micro Focus International 1,785.00 0.78 891,624 Fujifilm Holdings Corp 5,250.00 1.61 2,333,500 ert Lighthizer and Treasury Secretary lated to how and when Britain will Marks & Spencer Group Plc 271.20 -0.44 2,734,529 US President Donald Trump has Yamato Holdings Co Ltd 2,304.00 -3.76 2,961,000 Mondi Plc 1,657.50 1.19 1,173,254 pulled the trigger on a steep increase Steven Mnuchin. leave the EU, with business investment Chubu Electric Power Co Inc 1,569.00 2.28 2,061,900 Melrose Industries Plc 182.30 -0.74 8,235,011 in tariffs on Chinese goods, ramp- The slightly improved sentiment suff ering. But the economy has also Mitsubishi Estate Co Ltd 1,869.00 -0.05 5,529,500 Wm Morrison Supermarkets 215.40 1.75 6,053,041 ing up punitive duties on $200bn in provided support to higher-yielding, proven resilient, with British consum- Mitsubishi Heavy Industries 4,622.00 0.74 2,336,700 National Grid Plc 835.50 1.27 3,871,031 Sysmex Corp 7,197.00 1.85 1,523,500 imports from 10% to 25% in a major riskier currencies, with the yuan edg- ers continuing to spend and manufac- Nmc Health Plc 2,638.00 -1.31 263,413 Shiseido Co Ltd 8,430.00 -0.11 2,495,300 escalation of the bitter trade war be- ing higher though it continues to wal- turers rushing to deliver orders before Next Plc 5,626.00 -0.85 203,718 Shionogi & Co Ltd 6,651.00 2.34 1,843,000 tween the world’s two biggest econo- low around four-month lows. the initial Brexit deadline of March 29. Ocado Group Plc 1,339.00 0.53 2,006,850 Terumo Corp 3,095.00 -5.58 4,623,700 Paddy Power Betfair Plc 5,978.00 -0.57 199,100 mies. However, in a worrying sign, Hu The government delayed the Brexit Tokyo Gas Co Ltd 2,685.00 0.66 1,714,900 Prudential Plc 1,612.00 0.09 4,519,013 However, Russ Mould, investment Xijin, editor-in-chief of the Global date until end of October as it contin- Tokyo Electron Ltd 16,705.00 -0.45 1,561,900 Persimmon Plc 2,095.00 -0.80 654,878 director at stockbroker AJ Bell, said Times – which is published by the ues talks with the opposition Labour East Japan Railway Co 9,904.00 0.79 913,200 Pearson Plc 802.40 -0.30 1,591,182 markets were adopting a wait-and- Communist Party’s People’s Daily – Party to agree a deal that can muster Itochu Corp 1,955.00 1.66 11,037,300 Reckitt Benckiser Group Plc 6,145.00 -0.16 955,256 Ana Holdings Inc 3,702.00 0.60 1,334,000 see approach – and he suspected that a cited a source familiar with the talks as suffi cient support from lawmakers Royal Bank Of Scotland Group 232.90 0.30 6,850,303 Mitsubishi Electric Corp 1,484.00 -1.40 6,361,100 deal would eventually be clinched. saying there is “zero” chance of a deal that have repeatedly rejected May’s Royal Dutch Shell Plc-A Shs 2,426.50 0.41 5,822,671 Sumitomo Mitsui Financial Gr 3,880.00 -0.46 5,689,500 “Investors hate uncertainty as it before yesterday. withdrawal agreement. Royal Dutch Shell Plc-B Shs 2,433.00 0.45 2,946,645 Relx Plc 1,742.00 0.66 2,476,284 leads to speculation about what might “If it is that bad, the real suspense Sterling rose 0.2% to $1.3035, cut- Rio Tinto Plc 4,412.00 0.94 2,144,962 and might not happen. is whether the two sides will continue ting its week-to-date losses so far to Rightmove Plc 557.00 0.87 1,101,721 SENSEX Once they have the real facts, inves- negotiations after Friday,” Hu said. around 1.1%, although analysts were Rolls-Royce Holdings Plc 918.60 0.53 3,317,683 tors can properly assess the situation,” In addition to a rosier view on trade doubtful the pound’s move higher yes- Rsa Insurance Group Plc 554.20 1.43 3,248,467 Company Name Lt Price % Chg Volume Mould told AFP. talks, European markets also got a terday had legs. Rentokil Initial Plc 382.50 0.87 4,613,343 Adani Ports And Special Econ 372.55 2.38 3,030,255 “I suspect that markets still believe a boost from strong economic data, in- Against the euro the British currency Sainsbury (J) Plc 211.70 0.52 6,473,026 Asian Paints Ltd 1,341.05 -0.97 3,476,379 cluding accelerated British economic dropped 0.1% to 86.30 pence. Schroders Plc 3,076.00 0.59 230,047 deal can and will be done, because both Axis Bank Ltd 735.05 0.55 3,913,815 Sage Group Plc/The 715.00 -0.80 1,537,935 Bajaj Finance Ltd 2,922.85 -1.63 1,630,089 Segro Plc 686.00 1.00 1,429,352 Bharti Airtel Ltd 324.10 2.74 7,711,197 Smurfit Kappa Group Plc 2,236.00 -0.67 380,276 Bharti Infratel Ltd 262.25 -1.82 2,270,319 HONG KONG HONG KONG Standard Life Aberdeen Plc 266.00 0.08 4,990,956 Bajaj Auto Ltd 2,966.20 -0.56 241,374 Ds Smith Plc 339.60 1.19 4,455,102 Bajaj Finserv Ltd 7,383.70 -1.12 181,924 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Smiths Group Plc 1,498.50 0.17 490,007 Bharat Petroleum Corp Ltd 362.95 -1.39 4,116,360 Scottish Mortgage Inv Tr Plc 514.00 0.29 3,031,051 Ck Hutchison Holdings Ltd 0.25 Cipla Ltd 555.55 -0.39 1,687,480 79.75 5,688,165 Hong Kong & China Gas 18.72 0.65 12,049,010 Smith & Nephew Plc 1,612.00 0.56 2,106,336 Hang Lung Properties Ltd -0.12 Coal India Ltd 241.25 -0.43 5,294,698 17.08 12,085,550 Bank Of Communications Co-H 6.17 -0.48 33,827,386 Spirax-Sarco Engineering Plc 8,125.00 0.99 200,487 Ck Infrastructure Holdings L 0.32 Dr. Reddy’s Laboratories 2,876.40 -0.83 339,092 62.70 1,641,832 China Petroleum & Chemical-H 5.74 -0.35 158,803,466 Sse Plc 1,112.50 -0.31 2,220,608 Hengan Intl Group Co Ltd -3.08 Eicher Motors Ltd 20,354.00 -0.03 54,755 66.10 4,630,510 Hong Kong Exchanges & Clear 252.00 1.61 8,571,879 Standard Chartered Plc 679.80 0.03 6,816,970 China Shenhua Energy Co-H -0.94 Gail India Ltd 341.55 0.34 1,859,456 16.90 18,017,008 Bank Of China Ltd-H 3.51 0.00 507,821,369 St James’s Place Plc 1,101.00 0.41 802,819 Cspc Pharmaceutical Group Lt 2.37 Grasim Industries Ltd 857.60 -1.31 633,012 13.84 40,242,559 Hsbc Holdings Plc 66.90 0.68 20,761,009 Severn Trent Plc 1,961.50 0.36 583,417 Hang Seng Bank Ltd 0.50 Hcl Technologies Ltd 1,086.65 -4.39 7,767,725 203.00 1,266,939 Power Assets Holdings Ltd 55.75 1.00 5,195,205 Tesco Plc 242.10 0.62 11,176,279 China Resources Land Ltd 2.32 Housing Development Finance 1,931.70 0.89 1,628,923 33.05 7,139,334 Mtr Corp 46.20 0.22 2,859,019 Tui Ag-Di 827.80 0.24 2,535,347 Ck Asset Holdings Ltd 0.57 Hdfc Bank Limited 2,296.50 0.24 2,648,550 62.05 8,692,526 China Overseas Land & Invest 28.90 2.48 14,857,698 Taylor Wimpey Plc 177.20 -0.73 14,023,638 Sino Biopharmaceutical 4.98 Hero Motocorp Ltd 2,507.30 -1.20 332,771 7.38 58,272,532 Tencent Holdings Ltd 382.00 1.70 25,923,621 Unilever Plc 4,609.50 -0.03 1,604,587 Henderson Land Development 1.60 Hindalco Industries Ltd 195.80 -1.19 8,821,650 47.55 5,653,114 China Unicom Hong Kong Ltd 8.84 0.11 18,662,473 United Utilities Group Plc 797.20 0.50 1,785,894 Aia Group Ltd 0.39 Hindustan Petroleum Corp 272.15 -1.64 4,947,130 77.95 43,964,709 Link Reit 93.25 0.76 4,749,016 Vodafone Group Plc 139.00 0.36 49,683,354 Ind & Comm Bk Of China-H 0.36 Hindustan Unilever Ltd 1,687.45 -0.96 1,000,696 5.52 290,991,496 Sino Land Co 13.02 0.15 7,631,177 John Wood Group Plc 447.30 1.27 2,079,905 Want Want China Holdings Ltd -0.96 Icici Bank Ltd 385.10 0.97 18,361,701 6.17 19,540,992 China Resources Power Holdin 10.64 0.57 8,933,319 Wpp Plc 962.60 0.29 1,992,138 Sun Hung Kai Properties 0.90 Indiabulls Housing Finance L 698.05 2.41 9,052,790 134.00 4,514,310 Petrochina Co Ltd-H 4.60 -0.86 115,164,726 Whitbread Plc 4,520.00 0.22 666,795 New World Development 0.32 Indusind Bank Ltd 1,439.90 -2.48 2,304,082 12.56 10,854,272 Cnooc Ltd 13.38 0.30 61,378,602 Geely Automobile Holdings Lt 2.07 Infosys Ltd 716.85 -0.58 8,352,335 13.78 94,555,431 China Construction Bank-H 6.47 0.47 378,670,066 Swire Pacific Ltd - Cl A 0.36 Indian Oil Corp Ltd 147.60 -1.99 7,220,841 96.60 808,105 China Mobile Ltd 72.10 -0.89 24,708,957 Sands China Ltd 2.60 Itc Ltd 297.75 -0.70 6,904,657 41.45 12,510,017 TOKYO Wharf Real Estate Investment 0.78 Jsw Steel Ltd 287.35 0.67 7,076,251 58.25 3,461,438 Clp Holdings Ltd 0.17 Kotak Mahindra Bank Ltd 1,398.15 0.91 4,149,709 87.55 3,608,840 Country Garden Holdings Co 2.05 Company Name Lt Price % Chg Volume Larsen & Toubro Ltd 1,355.50 -0.07 1,466,154 11.92 39,187,346 Aac Technologies Holdings In 2.18 Mahindra & Mahindra Ltd 628.75 0.53 2,093,110 46.90 12,900,443 GCC INDICES Japan Airlines Co Ltd 3,607.00 0.50 1,837,400 Shenzhou International Group 3.06 Maruti Suzuki India Ltd 6,631.60 0.10 608,669 102.80 2,605,940 Indices Lt Price Change Recruit Holdings Co Ltd 3,286.00 -0.27 4,304,100 Ping An Insurance Group Co-H 2.48 Ntpc Ltd 127.00 -0.55 9,724,014 88.85 55,739,162 Softbank Corp 1,424.00 1.61 37,742,000 China Mengniu Dairy Co 29.65 2.95 15,836,054 Oil & Natural Gas Corp Ltd 166.30 -1.83 6,195,094 Doha Securities Market 10,027.17 -96.23 Kyocera Corp 6,899.00 0.80 1,612,000 Sunny Optical Tech 5.34 Power Grid Corp Of India Ltd 185.55 -1.25 3,340,512 90.70 10,779,194 Nissan Motor Co Ltd 858.50 0.01 13,390,600 Boc Hong Kong Holdings Ltd 32.95 0.76 32,751,270 Reliance Industries Ltd 1,251.15 -0.42 11,226,831 Kuwait Stocks Exchange 4,831.20 -24.66 T&D Holdings Inc 1,170.00 -1.80 3,306,600 China Life Insurance Co-H 1.24 State Bank Of India 308.05 2.92 60,739,833 19.56 63,472,776 Toyota Motor Corp 6,537.00 -0.12 6,478,400 Citic Ltd 10.92 -0.73 17,112,300 Sun Pharmaceutical Indus 437.75 -0.36 3,482,485 Oman Stock Market 3,863.28 -11.69 Kddi Corp 2,561.00 0.39 6,786,200 Galaxy Entertainment Group L 1.68 Tata Steel Ltd 486.80 -6.23 37,240,921 54.35 12,707,409 Nitto Denko Corp 5,303.00 1.45 1,056,100 Wh Group Ltd 7.70 0.92 176,530,106 Hitachi Ltd 3,683.00 -0.03 4,449,400 Tata Consultancy Svcs Ltd 2,135.80 -1.69 2,039,633 Takeda Pharmaceutical Co Ltd 4,291.00 3.97 9,311,000 Tech Mahindra Ltd 808.40 -0.15 1,429,055 Jfe Holdings Inc 1,776.50 -0.56 3,527,800 Titan Co Ltd 1,132.10 2.50 3,032,624 Sumitomo Corp 1,580.50 0.80 6,776,800 Tata Motors Ltd 185.90 -0.24 28,910,719 Canon Inc 3,051.00 1.63 5,841,500 Upl Ltd 959.00 1.06 876,783 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The Eisai Co Ltd 6,363.00 0.16 1,104,700 Ultratech Cement Ltd 4,434.25 -0.99 234,079 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Nintendo Co Ltd 37,000.00 0.65 1,796,600 Vedanta Ltd 155.95 -0.76 8,803,987 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 9,469.00 -0.90 1,935,700 Wipro Ltd 290.35 -0.24 3,066,672 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Mitsubishi Corp 2,844.00 -5.29 19,510,900 Yes Bank Ltd 163.85 -3.79 62,257,935 this data.” Smc Corp 41,270.00 1.20 293,700 Zee Entertainment Enterprise 371.20 3.72 18,020,131

Gulf Times Saturday, May 11, 2019 9 BUSINESS

Norway set for June rate hike as oil riches fan growth

Bloomberg Oslo

Norway’s central bank said it will probably raise interest rates in June, three months after the last increase, as policy makers break with a global trend and commit to tightening. The economy of Western Europe’s biggest oil exporter is nearing full capacity as its labour market grows tighter and inflation creeps above Norges Bank’s target. But with central bankers in Europe and the US taking a much more cautious approach, committing to higher interest rates doesn’t come without its risks when it comes to exchange rates and export markets. Policy makers in Norway kept the benchmark interest rate at 1%, as expected. The decision follows a rate hike in March, when Governor Oystein Olsen indicated another increase could come within the following half year. He said that the bank’s “current assessment of the outlook and balance of risks suggests that the policy rate will most likely be raised in June.” In an interview after the decision in Oslo, Olsen said that “the outlook for the Norwegian economy is good.” He said The Thyssenkrupp logo adorns its headquarters in Essen, Germany. The German group said “continuing concerns” from the European Commission had sunk its bid to join its steel business he’s aware that, from the bank’s forecast, in Europe with Tata’s. “one can infer that there will be two or three” rate increases in 2019. The krone initially jumped on the news, before trading little changed against the euro. Kristoff er Kjaer Lomholt, a senior analyst at Danske Bank, said the fact that Norges Bank is now pointing to a June hike “more explicitly” comes after many in the market had already priced Thyssenkrupp abandons in such forward guidance. As a result, “the market impact should be limited,” he said. “The outlook and balance of risks continues to imply a gradual increase in the policy rate,” Norges Bank said. It acknowledged that the global outlook merger plans with India’s is looking less certain, but pointed to continued strength in the Norwegian economy. “The uncertainty surrounding global developments persists,” the bank said. “In Norway, capacity utilisation appears to be rising broadly as expected, while Tata; cuts 6,000 jobs inflation has been slightly higher than projected. Overall, new information AFP company behind multinational gi- “a situation where we had to make wide and sales of €7.7bn ($8.7bn) tember under pressure from ac- indicates that the outlook for the Frankfurt ant ArcelorMittal and to join forces this major change, because it is the and is one of the group’s most prof- tivist shareholders, to split into policy rate for the period ahead is little in the face of the surge of Chinese right decision for the company now itable areas of business. two separate groups — “Indus- changed since the March report.” steel. in the changed frame conditions”, he The fl urry of announcements try” and “Materials”. Shelving the Norway’s economy is growing faster erman industrial conglom- Having shelved the plans and added. saw Thyssenkrupp’s stock soar, up plan to split is a blow to Kerkhoff, than a lot of its peers. Unemployment erate Thyssenkrupp said ruled out off ering more concessions The group had planned 4,000 job 17.31% to €13.10 by around 1230 who had banked on the scheme is below 4% and underlying inflation Gyesterday it was scrapping to Brussels in order to get a green losses, half of them in Germany, if GMT on Frankfurt’s stock exchange, to push profit and simplify Thys- was 2.7% in March. What’s more, merger plans with Indian steel gi- light, Thyssenkrupp said it was now the merger had been successful, but while Tata Steel shares closed down senkrupp’s complicated business the krone has so far remained weak ant Tata and would slash 6,000 jobs aiming for a stock market listing of its collapse means the conditional 6.1% in Mumbai. structure. despite the country’s economic worldwide in a structural shakeup. its elevators business as part of a re- agreement already negotiated with Thyssenkrupp and Tata declined In the wake of the failed merger, strength, which has given the central The German group said “continu- structuring. the unions “is no longer valid”, ad- to accommodate Brussels’ concerns Thyssenkrupp said it expected a bank more room to raise rates without ing concerns” from the European CEO Guido Kerkhoff said Thys- mitted Kerkhoff . which they said would “aff ect the net loss for the year and would re- hurting exports. Commission had sunk its bid to join senkrupp’s “new group-wide” pro- “We are building a new Thyssenk- synergies expected from the merg- lease the adjusted group forecast Joachim Bernhardsen, an economist at its steel business in Europe with gramme would also include “the rupp... we are going to change a lot er” to the point of compromising its on Tuesday with the second quarter Nordea Bank, said the hawkish signals Tata’s. reduction of 6,000 jobs” with 4,000 of things and it will not be an easy economic relevance. fi gures for 2019. from the Norwegian central bank won’t The Indian company said in a sep- to be cut in Germany and the rest road,” he added. The merger had been regarded as a The adjustment to the forecasts necessarily drive up the krone. “Yes, arate statement that both “partners abroad. Kerkhoff declined to give any de- core part of the planned restructur- takes into account the reintegration Norges Bank is hiking but risk sentiment assume with deep disappointment While Kerkhoff said while the tails on the planned IPO of its el- ing of Thyssenkrupp. of the steel division into the con- is souring, which seems to dominate,” he that the European Commission will company had a “good tradition of evators unit: “as to the right price In the wake of the U-turn on the glomerate’s balance sheet and the said. “As such, I am still reluctant to bet not approve the joint venture”. The avoiding compulsory redundancies”, and the right time, we can’t say merger plans, the German con- increase of 100mn euros in a risk on any significant EURONOK downside aim of the merger had been to create he admitted “this time it’s a diffi - anything”. The elevator division em- glomerate said it has also binned provision in a German anti-cartel in the short term.” the second largest European steel cult process”. Thyssenkrupp faces ploys around 50,000 people world- a proposal, put forward last Sep- investigation. Gulf Times 10 Saturday, May 11, 2019 BUSINESS

To save the dying sedan, automakers steal key feature from SUVs

Bloomberg helping to boost its availability to a $1,350 package, and close to half of all with heavy snow with the greatest “There is no fuel-economy penalty,” represents an eff ort to democratise the Southfield record 63.4% of new vehicles sold last Altima sales in wintry markets such as need for traction on slippery and said Tom Doll, chief executive off icer of technology. year, up from 56.4% a decade ago, the Northeast have all-wheel drive. rough surfaces. Not only were they Subaru’s US sales unit. “Our all-wheel Fiat Chrysler may add all-wheel according to data from Edmunds. One of those buyers is Josh Bothell, a considered unnecessary for most cars, drive is just as fuel eff icient — or more — drive to its Pacifica minivan in a bid All-wheel-drive sedans used to be a Automakers are betting that by passing 34-year-old retail store supervisor, who but powering all four wheels increased as others’ front- or rear-wheel drive.” to boost sales, trade publication niche market limited to park rangers these powertrain variants on to recently purchased an Altima from cost, weight, mechanical complexity The Japanese brand is one of the Automotive News reported in March. A and uptight snow-belt drivers. These passenger cars, they’ll be able to prop a Nissan dealership in Old Saybrook, and fuel use. That limited their appeal pioneers in bringing all-wheel-drive spokeswoman said the company hasn’t days, they’re becoming a more popular up their sagging sales. Connecticut. Bothell had previously to hardcore enthusiasts. vehicles to the masses. “We’re the made any announcements. choice for decidedly mainstream “The transition to SUVs has primed owned a 2005 model, then traded But years of lower gasoline prices original all-wheel-drive company,” Doll Mazda Motor Corp made all-wheel drive models. American auto buyers for additional that in for a 2013 Subaru Impreza. He have made American car buyers said in an interview. available on its latest Mazda3 compact The latest entrants to the all-wheel capabilities,” said Jeremy Acevedo, said he wouldn’t have gone back to less sensitive to slight fuel-economy A handful of mass-market sedans and plans to off er it on the upcoming stable include the Mazda6, Nissan Edmunds’ manager of industry analysis. the Altima without the all-wheel drive diff erentials. And automakers have off ered optional AWD, such as makeover of its midsize Mazda6 sedan. Altima and Toyota Prius. As sales of “The recent increase in cars off ering option. have tweaked their all-wheel-drive Fiat Chrysler Automobiles NV’s Dodge Masahiro Moro, chairman of Mazda’s crossovers, sport utility vehicles and AWD is an attempt to level the playing “I’m really glad Nissan made the Altima systems to improve eff iciency. Subaru Charger and Ford Motor Co’s soon-to- North American operations, expects pickups have grown, automakers are field between cars and SUVs.” AWD,” he said. “I just feel like SUVs are Corp’s Crosstrek crossover boasts a be-discontinued Fusion. Luxury cars, as many as 40% of Mazda6 buyers equipping more of their sedans with Nissan Motor Co began off ering all- really too big, and I wanted something respectable combined city and highway including BMW AG and Volkswagen to choose the option. “All-wheel drive all-wheel drive to hang onto buyers wheel drive on its latest Altima sedan smaller and compact.” rating of 29 miles per gallon. Toyota AG’s Audi sedans, also off er it, as do gives more of a sense of safety for wanting more SUV-like features. in the US market in November. Since For decades, all-wheel or four-wheel Motor Corp’s Prius equipped with its Acura, Infiniti and Lexus sedan models customers, and they see it as something All-wheel or four-wheel drive is then, the company says more than 20% drivetrains were relegated to truly AWD-e system boasts a stellar 50 miles made by Honda Motor Co, Nissan and like a premium feature,” Moro said in an standard on most SUVs and trucks, of buyers in the US have opted for the off -road vehicles or regional markets per gallon combined rating. Toyota, respectively. But the latest wave interview.

EU banks call for rethink of capital Asda to rely on Walmart markets project

Reuters London

The European Union’s eff orts to create a largesse as Sainsbury’s capital market to rival the United States have made little headway and the project needs a new push to remove barriers that hamper progress, bankers said yesterday. The capital markets union or CMU seeks to encourage companies to raise money by issuing stocks and bonds, rather than takeover dream expires continuing to raise loans from EU banks, some of which are still struggling to recover from the 2008 financial crisis. £7.3bn takeover by Sainsbury’s The CMU, launched in 2015, has been a central was blocked last month; Asda to plank of the current European Commission’s update on first-quarter trading mandate that ends in the summer. on May 16; Asda has reported But after a reset of the project in 2017 and seven straight quarters of adoption of 11 new EU laws, most companies growth in Europe still get their money from banks. This contrasts with the United States where Reuters companies tap financial markets instead, London which have greater capacity to spread risk more evenly across the economy. “We need a new push to reinforce the use of sda will be scrutinised for financial markets by companies in Europe,” clues on whether US owner said Giovanni Sabatini, chairman of the AWalmart wants to line it up European Banking Federation’s executive for sale or to compete longer term committee. in the cut-throat British grocery “It is clear though that the European CMU market when it gives its fi rst trad- project needs a reset. ing update since a planned Sains- The fundamental and structural obstacles bury’s takeover collapsed. that stand in the way of an integrated Capital Britain’s competition regula- Markets Union need to be identified and tor last month ruled Sainsbury’s removed,” Sabatini said. £7.3bn ($9.5bn) takeover of rival Barriers to a seamless cross-border capital Asda cannot proceed, closing one market include diff erences in national tax exit route for Walmart. and insolvency laws, a vested interests of Asda, which accounts for 6% some market participants in heading off of Walmart’s turnover, is due to competition, and duplication of services. publish a fi rst-quarter update on AFME, another banking lobby, said on Thursday, when the world’s biggest Thursday that eff orts to boost securitisation, retailer posts quarterly earnings. a fundraising mechanism that is one of the Analysts have speculated that CMU’s core objectives, have made little Walmart will try to sell Asda to ground. private equity or consider a stock Brussels has sought to use Brexit to kickstart market listing for the business it the CMU, warning that London, the region’s acquired for 6.7bn pounds in 1999. biggest financial centre used by companies But a source with direct knowl- across Europe to raise money, will be outside edge of the matter said Walmart the bloc. is in no rush to make a decision, A customer pushes a shopping cart as she walks towards an Asda supermarket in the Wembley district of London. Britain’s competition regulator last “CMU in general is a journey and we have not partly because Asda is performing month ruled Sainsbury’s £7.3bn ($9.5bn) takeover of rival Asda cannot proceed, closing one exit route for Walmart. yet arrived,” Marc Bayle, director-general for relatively well under chief execu- market infrastructure at the European Central tive Roger Burnley. Walmart has been focused on Burnley, like his predecessor profi t target is,” a senior industry tap to stay on... because that makes Bank, told an AFME conference this week. Asda has reported seven con- turning around its internation- Sean Clarke, has benefi ted from executive said. it more attractive for (a future) Werner Frey, a managing director of AFME, secutive quarters of like-for-like al business by targeting higher Walmart’s 2016 decision to re- “If Walmart says ‘we would like sale.” told the same event that only the public sales growth, thanks to a strategy growth markets such as China and lax profi t demands of around 1bn you to go back to the profi tability While Sainsbury’s CEO Mike sector could remove many of the remaining focused on lower prices, more in- India and exiting or tying up with pounds on Asda, allowing it to cut you had three years ago’, then Asda Coupe, the main architect of the barriers to the cheaper financial plumbing novation in own-brand products, local players elsewhere. prices and stem the loss of market can’t execute their current strategy. deal, has been heavily criticised that a CMU needs. better store standards and im- When the Sainsbury’s deal was share to German-owned discount- It’s not designed to deliver that for its failure, Burnley has emerged The CMU so far is probably a “failure”, Frey provements in its e-commerce op- blocked on April 25 Judith McKen- ers Aldi and Lidl. level of profi t,” he said. relatively unscathed. said. erations. na, CEO of Walmart International, That strategy shift meant Asda’s Another source with connec- With the exception of one bruising Analysts say more fundamental change is A read across from monthly in- said its focus was on “continuing to operating profi t fell 13% to 735.4mn tions to Asda said that scenario appearance in front of lawmakers in needed to make CMU a success, such as dustry data produced by researcher position Asda as a strong UK retail- pounds in 2017, its latest published would mean Burnley having to take June, Burnley has kept a low public restoring public trust in markets after the Kantar indicates that Asda will er”. Walmart “will ensure Asda has accounts. out unprofi table, or barely profi t- profi le since the deal was announced, global financial crisis a decade ago ushered in likely report an eighth straight the resources it needs to achieve “The issue for Asda is what is able, stores, and cut staff numbers. which insiders say partly refl ected austerity. quarter of growth. that,” McKenna added at the time. Walmart going to tell it what its “But I suspect they’ll allow the his ambivalence towards it. Barrick CEO expects to raise $1.5bn in asset sales

Bloomberg “It’s not a fi re-sale, it’s a considered Toronto process,” Bristow said in a separate in- terview with Bloomberg TV. “We’ll work with those stakeholders, and we arrick Gold Corp, which com- will let the market know when we’re pleted its acquisition of Randgold ready to let them know once we’ve got BResources Ltd at the beginning of a way forward for each of those assets.” the year, has identifi ed $1.5bn in assets The earnings statement was released the miner intends to sell, chief execu- before the start of regular trading on tive offi cer Mark Bristow said. Wednesday in New York. “Our focus is realising $1.5bn through Barrick will focus on fi nding the right next year,” Bristow said on Wednesday buyers for its assets and is willing to in an interview in Toronto. The assets help them manage the mines during a will be sold once they are optimised transition period, if required, Bristow enough to create suffi cient value for told BTV. Some of the assets Barrick is shareholders, he said. selling are in countries that the com- The gold sector has been anticipat- pany still wants to invest in, he says. ing a wave of asset sales in the wake of In the meantime, the Toronto-based Barrick’s $5.4bn acquisition of Rand- miner also won’t hesitate to “pick up gold and a second mega-merger that other assets” that may be available. created Newmont Goldcorp Corp. The Barrick said its joint venture agree- newly combined giants were expected ment with Newmont is expected to to put several unloved mines up for sale, close by the end of the quarter. In leaving lots of room for manoeuvring by March, Barrick withdrew a $17.8bn company executives who have missed hostile bid for rival Newmont after ne- out on the dealmaking. gotiating the joint venture combining The objective is for the sale process to most of their assets in Nevada. Barrick be well advanced by mid-2020, Barrick has a 61.5% stake in the JV to New- said in its fi rst-quarter earnings state- mont-Goldcorp’s 38.5%. ment, its fi rst results since its acquisi- Barrick also said it will declare a divi- tion of Randgold was completed. dend of 4 cents a share. Gulf Times Saturday, May 11, 2019 11 BUSINESS Nordic banks pool resources to fight money laundering

Banks to co-ordinate on customer checks; your customer” (KYC) checks as a safeguard The finance industry have been under pressure Banking secrecy laws prevent banks from The initiative, which will become a joint venture Nordic KYC Utility aims to sell services against money laundering as the process of to take action quickly because of criticism disclosing suspicious clients to each other and with institutions that are part of it owning stakes, from 2020; first cross-border venture of verifying the identity of customers, companies by regulators of their anti-money laundering this has hindered the fight against financial expects to be ready in 2020. its kind, SEB says; other countries explore and business associates can help banks to spot controls. crime, a paper published last September by But such ventures have had varying success, similar measures or monitor suspicious clients. Last year, Sweden’s Financial Supervisory independent consultancy the Tax Justice with Singapore’s Monetary Authority having “Preventing financial crime is a top priority and Authority said lenders had insuff icient customer Network said. shelved its KYC utility citing unexpectedly high Reuters a strong driver behind this initiative,” Fredrik due diligence measures in place from 2016- But several groups are looking at potential costs. Stockholm Millde, project manager of the venture, known 2017, indicating there was a lack of information industry-wide initiatives as the regulatory Graham Barrow, an anti-financial crime as Nordic KYC Utility, told Reuters. about beneficial owners and inadequate burden to police and report financial crime banking expert, said in the past these utilities The banks have not worked together previously, documentation. grows. have not worked well because banks grade The Nordic region’s six major banks are joining but the international nature of money SEB spokesman Laurence Westerlund said Clipeum, a French project launched by Societe clients diff erently based on their individual risk forces to set up a customer checking centre laundering and the diff iculties preventing it has people from the founding banks were testing Generale’s employees, with support from the appetites and also because the utilities did not to crack down on money launderers, part of persuaded them to join forces. various IT functions and systems for the utility, bank, is building a platform where companies often do qualitative analysis on KYC data. eff orts to recover from a scandal that has shaken The new body is expected to create a which is hoping to win European Union antitrust and individuals can upload KYC documents and But the Nordic banks’ venture is looking to go confidence in the finance industry. standardised KYC process for large and midsize clearance in third quarter. authorise financial institutions to consult the one step further. Danske Bank and Swedbank have lost billions Nordic corporate customers across the six banks The new body could allow the banks to co- documents. Millde said it was looking at setting up a from their market value after becoming and Millde expects it to start providing services ordinate identity tracking, reduce KYC failures “We thought it was smarter to collaborate on common “onboarding” process for the six banks. embroiled in a money laundering scandal from 2020 and also sell its services to other or misidentification risks due to use of diff erent this matter instead of compete,” said Eric Le This would allow any of the banks to use the involving their businesses in the Baltics. banks. data sources and cut inhouse compliance Roux, one of the two co-founders of Clipeum, utility to assess whether to take on a customer. The banks have promised to take steps to Five of the six banks first announced the venture costs, accounting firm Deloitte said in a paper who also works for Societe Generale. “There is no provider that can do the full scale rectify shortcomings, such as their planned joint in May 2018. on the Nordic project and other KYC measures Societe Generale has so far convinced Allianz, of what we want to do and there is isn’t any venture with rivals Handelsbanken, Nordea, SEB Swedbank joined later in the year. prepared for UK banks. Banque Postale, BpiFrance, Commerzbank, provider around that has done this cross border and DNB to perform common customer checks. The banks have not said how much they are The concept of these utilities is relatively new Credit Agricole, Euler Hermes, Natixis, asset (work) in the way that this project has as its aim,” Regulators and banks see these so-called “know spending on it. and there are only a handful in existence. manager Tikehau and UniCredit to join Clipeum. Westerlund said.

London court orders asset Consumer prices rise in US; freeze for Russia’s Antipinsky underlying infl ation benign oil refi nery Consumer price index increases 0.3% in April; CPI rises 2.0% Reuters year-on-year; core CPI gains Moscow 0.1%; up 2.1% year-on-year

Reuters London court has issued a Washington worldwide order to freeze A€225mn ($250mn) in as- sets belonging to Russia’s An- S consumer prices rose mod- tipinsky oil refi nery, according erately in April and underlying to a copy of the order seen by Uinfl ation remained muted, sug- Reuters. gesting the Federal Reserve could keep The court order was issued interest rates unchanged for a while. by the Commercial Court of the The persistently benign infl ation re- High Court of Justice on April 30 ported by the Labour Department yes- in response to a lawsuit by Rus- terday could, however, increase White sia’s VTB Commodities Trading, House pressure on the US central bank the document shows. to cut rates. The New Stream Group, President Donald Trump has repeat- which owns the refi nery, did not edly criticised the Fed for tightening immediately respond to a re- monetary policy, arguing that infl ation quest for comment. was low. The group has previously re- “Great Consumer Price Index just ferred questions to the refi nery’s out. Really good, very low infl ation! major creditor, Russian lender We have a great chance to ‘really rock!’ Sberbank. Sberbank declined to Good numbers all around,” Trump comment. tweeted after the report. A VTB representative also de- The Fed last week kept interest rates clined to comment. unchanged and signalled little desire The Antipinsky refi nery, which to adjust monetary policy anytime has a capacity of 9mn tonnes soon. per year, has halted operations Fed chairman Jerome Powell said he on several occasions in recent believed the weak infl ation readings months because of a lack of mon- “may wind up being transient.” ey to pay for crude oil deliveries, The Consumer Price Index in- according to industry sources. creased 0.3% last month, lifted by The refi nery last month an- rising gasoline, rents and healthcare nounced plans to declare bank- costs. ruptcy despite receiving more The CPI gained 0.4% in March. than 30bn roubles ($460mn) It increased 2.0% in the 12 months in funding from state-owned through April after advancing 1.9% in Sberbank since October. March. The court order applies to the Economists polled by Reuters had Customers shop at a store at the Gateway Shopping Center in the Brooklyn borough of New York (file). The Consumer Price Index increased 0.3% last month, lifted by refi nery’s equipment and prop- forecast the CPI increasing 0.4% in rising gasoline, rents and healthcare costs, the Labour Department said yesterday. erty in Russia’s Siberian region April and rising 2.1% year-on-year. of Tyumen, as well as petroleum Excluding the volatile food and en- tures (PCE) price index, for monetary of the increase in the CPI last month, ing a home, increased 0.3% last month 1949, after the government introduced products stored there and at one ergy components, the CPI edged up policy. after surging 6.5% in March. after rising by the same margin in a new method and data to calculate ap- of its tankers in the northern port 0.1% as apparel prices dropped for a The core PCE price index increased Food prices dipped 0.1% in April, the March. parel prices. of Murmansk, among other as- second straight month. 1.6% on a year-on-year basis in March, fi rst drop since June 2017, after gaining Healthcare costs increased 0.3%, Prices for used motor vehicles and sets. The order also forbids the The so-called core CPI has now in- the smallest rise in 14 months, after 0.3% in the prior month. matching March’s gain. trucks fell 1.3%, decreasing for a third refi nery from selling vacuum creased by the same margin for three advancing 1.7% in February. Food consumed at home dropped There were increases in the cost of straight month. gas oil (VGO) to other compa- straight months. The April PCE price index data will 0.5%, the largest decline since March prescription medication and doctor There were also declines in the cost nies without the consent of VTB In the 12 months through April, the be published later this month. 2016. visits. of airline fares, alcoholic beverages and Commodities Trading. core CPI increased 2.1% after gaining The dollar fell against a basket of But consumers paid more for rent But the cost of hospital services fell tobacco. 2.0% in March. currencies after the CPI data, while US and healthcare. 0.5%. Apparel prices declined 0.8% Prices for household furnishings fell The Fed, which has a 2% infl ation Treasuries extended gains. Owners’ equivalent rent of primary last month. for the fi rst time in 10 months. target, tracks a diff erent measure, the In April, gasoline prices rose 5.7%, residence, which is what a homeowner They plunged 1.9% in March, which The cost of new vehicles ticked up Ambu CEO makes core personal consumption expendi- accounting for more than two-thirds would pay to rent or receive from rent- was the biggest drop since January 0.1% after rising 0.4% in March. a sudden exit

Bloomberg Portugal’s unemployment rate rises for the first time since 2016 Copenhagen Ambu A/S is replacing its chief Bloomberg budget deficit. The Bank executive off icer after he led the Lisbon of Portugal forecasts medical technology company growth will slow to 1.7% through the Danish stock mar- this year. ket’s best performance over the Portugal’s Portugal’s output growth past decade. unemployment rate has been chiefly due to During his tenure, Lars Marcher rose in the three months employment growth oversaw changes in the com- through March, the first rather than increased pany that triggered share-price increase since 2016. productivity, the gains of more than 5,000%. He The unemployment rate country’s central bank will be replaced by Juan-Jose climbed to 6.8% in the said in a statement. Gonzalez, who is joining from first quarter from 6.7% The economy expanded Johnson & Johnson next week. in the fourth quarter. for a fifth consecutive Ambu chairman Jens Bager It fell from 7.9% in the year in 2018. said he wants a CEO with “the first quarter of 2018, the The number of jobless necessary global experience” to Lisbon-based National workers from services lead expansion plans. Gonzalez, Statistics Institute said on businesses rose 2% in 46, has also worked at Pfizer, its website. the first quarter from the Ambu said. Tourism has boosted the previous quarter, while The announcement is “sur- Portuguese economy, those from industries prising” given the “extreme which in 2017 posted its including manufacturing, success” of Marcher’s strategy, strongest growth since construction and energy said Per Hansen, an investment 2000. That’s helped increased 7.8%. economist at Nordnet. the country’s minority The number of people “Judging by the financial results, Socialist administration, seeking their first job it’s hard to put a finger on Lars which faces a general dropped 21%. Marcher’s achievements,” election in October, Youth unemployment Hansen said. to lower the jobless fell to 17.6% in the first “There must be other reasons rate and manage the quarter. behind the departure.” Saturday, May 11, 2019 GULF TIMES BUSINESS

QSE WEEKLY REVIEW Local and non-Qatar retail investors, domestic funds turn bullish on market

By Santhosh V Perumal Index knock off a substantial 4.33% this Islamic Bank, Commercial Bank, Qatar The banks and financial services index However, domestic funds were net value by 25% to QR41.58mn and Business Reporter week which saw CI aff irm the LT FCR of First Bank, Mazaya Qatar, Barwa, Gulf plunged 5.6%, insurance (5.19%), real buyers to the extent of QR89.07mn transactions by 7% to 1,389. QIIB at ‘A’. Warehousing, Nakilat, Dlala, Qatar estate (4.88%), industrials (4.54%), against net sellers of QR89.05mn the The industrials sector reported 37% Nevertheless, local and non-Qatar Electricity and Water, Aamal and Salam transport (2.06%), telecom (1.59%) and previous week. shrinkage in trade volume to 18.53mn The Qatar Stock Exchange remained retail investors as well as domestic International Investments this week consumer goods (0.69%) this week Qataris were also net buyers to the shares, 3% in value to QR346.53mn and under bearish spell in the entire five funds turned bullish this week which which saw as many as 1,070 Masraf which saw industrials and banking tune of QR59.15mn compared with net 14% in deals to 9,098. sessions and lost a sizeable 453 points saw Qatar register more than 4% Al Rayan sponsored exchange traded segments together account for more sellers of QR88.48mn the week ended The consumer goods sector’s trade in the key index and about QR28bn in year-on-year decline in trade surplus to fund QATR valued at QR0.03mn trade than 66% of total trade volume. May 2. volume tanked 35% to 1.6mn equities, capitalisation this week. QR12.75bn in March this year. across five deals. The industrials sector accounted for Non-Qatari individuals turned net while value grew 41% to QR137.5mn More than 80% of the traded Market capitalisation eroded about However, Gulf International Services, 42% of the total volume, banks and buyers to the extent of QR6.41mn despite 1% lower transactions at 1,694. constituents were in the red this week 5% to QR558.73bn mainly on large, United Development Company, Alijarah financial services (24%), real estate against net profit takers of QR11.03mn The banks and financial sector saw 32% which saw Capital Intelligence (CI), mid and small cap segments this week Holding and Qatar General Insurance (18%), telecom (7%), consumer goods a week ago. contraction in trade volume to 10.63mn an international credit rating agency, which featured a report from Institute and Reinsurance were among the and transport (4% each), and insurance Total trade volume fell 32% to 44.1mn stocks but on 1% jump in value to aff irm long-term foreign currency rating of International Finance (IIF), the US- prime gainers this week which saw a (2%) this week. shares, value by less than 1% to QR430.08mn and 7% in deals to 6,136. (LT FCR) of Commercial Bank at ‘A-’. based economic think-tank, that found total of 9,240 Doha Bank sponsored In terms of value, banks and financial QR1.12bn and transactions by 9% to The transport sector’s trade volume Foreign institutions were seen net real estate prices in Qatar had seen a QETF valued at QR0.93mn trade across services’ share were 38%, industrials 24,122 this week. declined 14% to 1.57mn shares, value by profit takers this week which also saw temporary upturns but remain well 10 deals. (31%), consumer goods (12%), real The market witnessed 60% plunge in 7% to QR40.54mn and transactions by CI upgrade its LT FCR outlook on Doha below the pre-rift levels; even as 2022 The Total Return Index plummeted estate (9%), telecom and transport (4% the insurance sector’s trade volume 17% to 920. Bank to “stable” from “negative”. FIFA World Cup is likely to provide an 4.33%, Al Rayan Islamic Index (Price) each), and insurance (2%) this week. to 0.7mn equities, 35% in value to There was a 3% fall in the real estate An across the board selling – additional impetus to growth. 3.42% and All Share Index 4.58% this Foreign institutions turned net sellers to QR22.47mn and 44% in deals to 638. sector’s trade volume to 8.02mn particularly in banks, insurance, realty Major shakers included Industries week which saw no trading of either the tune of QR154.63mn compared with The telecom sector’s trade volume equities, 5% in value to QR105.9mn and and industrials – led the 20-stock Qatar Qatar, QNB, Qatar Insurance, Qatar sovereign bonds or treasury bills. net buyers of QR188.56mn a week ago. plummeted 43% to 3.04mn stocks, 12% in deals to 4,247.

LNG prices stable amid lack of end-user buying

Reuters to sell cargoes. China’s Pet- London roChina was off ering a cargo in the Platts MOC window for late June delivery. iquefi ed natural gas A spot cargo off ered from (LNG) prices in Asia held Malaysia’s Bintulu for early Llargely steady this week, June loading likely didn’t fi nd a taking a breather after recov- buyer, a shipping market source ering from a signifi cant dip in said. March. In Europe, Spain’s delivery LNG for delivery in north- prices are increasing on the east Asia in June is estimated at back of higher gas demand in $5.60 per million British ther- the country, two trade sources mal units (mmBtu), the same said. level as last week. Off ers rose to above the level The July price is seen at a of the Dutch gas hub bench- slight contango — a market mark price as sellers see Spain structure in which prompt having to compete for cargoes prices are below later-dated with other markets, one of the prices — and is estimated at sources said. $5.65 mmBtu. There were several spot cargo Demand kept coming from off ers in Europe. trading and portfolio compa- Novatek is selling a late May nies who are optimising their delivery cargo to northwest Eu- positions in the Far East. rope from the Yamal plant, two Deals for June cargoes were sources said. done between $5.50-5.60 in the PetroChina, another off - Platts market on close (MOC) taker from Yamal, has off ered Attendees stand at the China Mobile booth at the Mobile World Congress in Shanghai in June 2018. The FCC yesterday voted 5-0 to deny China Mobile’s request to enter the US window this week. three cargoes for June delivery market, after being urged to do so by the Trump administration. Several companies are in to Europe, one industry source talks to optimise their July po- said. sitions as well, an LNG trader Front-month gas prices in said. the Netherlands and Britain fell One is the trading arm of by around 20 cents to around Russian producer Novatek, $4.63 and $4.24 per mmBtu re- which is looking to buy a cargo spectively. in the Pacifi c basin to cover a There were two diversions of US FCC bars China Mobile July delivery position in Asia, cargoes from Europe to Mexico two market sources said. in the past week, indicating A lack of end-user demand more attractive prices in the re- kept prices from rising how- cent tenders of Mexican utility from market; reviewing ever, with some buyers off ering CFE compared to Europe. Novartis’s $5.3bn eye-drug deal balances bigger bets other Chinese carriers “But did you have to pay an Bloomberg London extraordinary amount of Bloomberg on Thursday and yesterday to resolve the China Mobile told the agency it wouldn’t rier that uses “best-practices” measures. money to get it?” Washington trade dispute. In the most dramatic step provide domestic telephone or mobile “We comply with all applicable laws in the Novartis will need to yet, the US raised tariff s to 25% on more services in the US. course of operations and have not engaged While Novartis AG bets on significantly boost the drug’s than $200bn in goods from China yester- Granting the request would have given in any behaviour that causes ‘substantial cutting-edge science in pursuit sales over the next several he US Federal Communications day, as people familiar with the talks said China Mobile greater access to telephone and serious national security and law en- of the next breakthrough years to justify the price Commission barred China Mobile President Xi Jinping’s top trade envoy and lines, fi bre-optic cables and cellular net- forcement risks,”’ China Mobile said in an drugs, its deal to pay as much tag, he said. Excluding the TLtd from the US market over na- his US counterparts made little progress works, raising concerns about its ability to e-mailed statement prior to the vote. as $5.3bn for an eye-drop $1.9bn of potential milestone tional security concerns and said it was on Thursday. alter, block and re-route traffi c, the White The moves by the FCC won’t have an treatment adds a less risky payments, the $3.4bn Novartis opening a review of other Chinese com- The Trump administration also is try- House told the FCC. impact on China Unicom, Chairman and more predictable product is shelling out upfront values panies amid friction between the world’s ing to persuade allies to shun Huawei “They consider the risks to be unac- Wang Xiaochu told reporters in Hong to its futuristic lineup. Xiidra at 8.5 times 2018 biggest economies. Technologies Co, the Shenzhen-based ceptable,” the FCC said in a document Kong yesterday. The carrier hasn’t vio- In buying Xiidra from Takeda sales, “a big price tag given The FCC voted 5-0 to deny China Mo- network-gear maker that US offi cials call prepared for Thursday’s vote. “The Chi- lated any law, international or local, and it Pharmaceutical Co, the Swiss market dynamics,” according bile’s request to enter the US market, after a security risk. Huawei offi cials dispute nese government could use China Mobile relies on partners in the US, where it has pharma giant gains a drug to Sam Fazeli, a Bloomberg being urged to do so by the Trump admin- the accusation. The FCC is considering USA to conduct or to increase economic no facilities, he said. that’s forecast to become Intelligence analyst. istration. FCC chairman Ajit Pai after the whether to allow Huawei to operate in espionage and intelligence collection Republican Commissioner Brendan a blockbuster. With about Allergan Plc’s competing vote said the agency is “looking at” au- the US and is awaiting a recommendation against the US.” Carr said the agency should go further and $400mn in sales last year, blockbuster Restasis is set to thorisations granted earlier to China Tel- from the Trump administration, Pai said. Earlier: US Seeks to Block China Mo- investigate China-owned carriers that re- Xiidra treats a condition face cheaper generic copies ecom and China Unicom. He declined to The FCC vote rejected an application bile’s Entry, Escalating Tension ceived approval to connect with US net- known as dry-eye that may in the second half of the year, say what that process entails. fi led in 2011 by China Mobile Interna- US concern focused on Chinese law works earlier, citing concerns that at least aff ect more than 30mn Fazeli said. Xiidra could rack The FCC said it had determined China tional (USA) Inc. The agency said parent that requires companies to co-operate one of them “has been hijacking US traffi c people in the US. The disease up peak sales of as much as Mobile is controlled by the Chinese gov- company China Mobile is 100% owned by with state intelligence agencies, which the and redirecting it through China.” can hinder daily activities $1.4bn, according to Elizabeth ernment. “The Chinese government could the Chinese government. US has said could be used for economic FCC Commissioner Jessica Rosenwor- like reading and driving and Krutoholowat Bloomberg use China Mobile to exploit our telephone Parent China Mobile is the world’s larg- espionage or intelligence activities. Chi- cel, the agency’s senior Democrat, said permanently damage vision if Intelligence. network to increase intelligence collec- est mobile phone operator by customers, na Mobile’s size and technical resources the Republican-majority FCC is doing untreated. Xiidra, which inhibits tion against US government agencies and with about 899mn subscribers. It wanted make it particularly vulnerable to such too little to ensure network security. That injects some certainty inflammation, is the first other sensitive targets that depend on this approval to be listed as a “common carri- demands, the government said. “This application has been in these into Novartis’s stable of drugs dry-eye treatment approved network,” Pai said. “That is a fl atly unac- er” that would let it to carry international China Mobile said it wouldn’t be re- halls for more than eight years,” Rosen- at a time when it’s advancing for both the signs and ceptable risk.” voice traffi c between the US and foreign quired to comply with such requests and worcel said in a written statement. “So into uncharted territory for big symptoms of the condition The vote came as senior Chinese offi - countries, and to connect that traffi c with said it “is no more vulnerable to exploita- while I support this vote, it does nothing pharma — complex treatments and has demonstrated cials visited Washington for negotiations the US telecommunications network. tion” than any other US or foreign car- to change the status quo.” that aim to fix the root causes additional benefits in late- of a host of devastating stage studies, according to illnesses. Cell and gene Basel, Switzerland-based therapies are among novel Novartis. The company also approaches that come with will get about 400 employees Swiss National Bank’s Jordan says negative rates remain vital dramatic results for patients, tied to the drug. Bloomberg along with doubts surrounding reported the potential sale on the long-term benefits and Wednesday. Reuters “We don’t have negative interest rates be- rate of -0.75% on commercial bank balances have don’t please everyone, but are neces- business model. But investors Under Chief Executive Off icer St Gallen, Switzerland cause we love them, but it’s the best way to above a certain level, the Swiss economy sary to fulfil the mandate of the SNB.” are questioning the price. Vas Narasimhan, Novartis implement our monetary policy for the time would be damaged by a surge in the value He dismissed concerns about the huge size “It’s lovely cash flow. It grows has sharpened its focus on being,” Jordan told an event in St Gallen. of the safe-haven Swiss franc, which Jordan of the SNB’s balance sheet, which has grown the top line. No one disputes innovative drugs for cancer The Swiss National Bank needs to stick to “Negative rates and our willingness to inter- said remained “highly valued.” larger than the entire Swiss economy. the drug works,” said Ketan and rare illnesses. These its current cocktail of negative interest rates vene in the currency markets as necessary “What would happen if the SNB increased Inflation expectations were very low, while Patel, a fund manager include Zolgensma, a gene and foreign currency interventions to pro- are the two pillars of our policy.” interest rates to zero? The overall results even if the SNB suff ered massive losses from and Novartis shareholder therapy expected to get tect the country’s economy, SNB Chairman If the SNB abandoned its current stance, would be much worse than it is at the mo- its stock investments it could not become in- at Edentree Investment approval this month to treat a Thomas Jordan said yesterday. which includes charging a negative interest ment,” Jordan said. “The instruments we solvent because of its ability to create money. Management in London. devastating muscle disease.