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Friday, April 17, 2020 Sha’ban 24, 1441 AH VIRUS LOCKDOWN : Page 10 UK headed for GULF TIMES historic slump as retail sales slide, BUSINESS companies close

Opec sees demand for its GCC commerce ministers crude dropping to lowest in stress need to promote 30 years Bloomberg London

Opec expects demand for its crude will fall to the lowest in three decades as the food security in region coronavirus outbreak freezes the global economy, underscoring the urgency of its he GCC commerce ministers have The meeting also highlighted efforts promised production cuts. highlighted the need to promote across GCC countries to address the re- Just under 20mn barrels a day will be Tfood security, and ensure the con- percussions of the pandemic and to miti- needed on average from the Organisation of tinuity of food supply chains and medical gate its impact on all levels. Petroleum Exporting Countries in the second supplies for residents of Gulf countries, The meeting also featured discussions quarter, according to a monthly report from in light of the partial and complete lock- on the action plan that Kuwait proposed the group. It hasn’t pumped this little crude downs that have been implemented in on the importance of establishing a GCC since early 1989. various countries. food security system, and the availability Opec and its allies agreed massive HE the Minister of Commerce and In- of a sufficient stock of medical supplies in production cuts amounting to 10% of global dustry Ali bin Ahmed al-Kuwari partici- times of crises. supplies over the weekend, as governments pated in the Second Extraordinary Meet- Participants also agreed on the need extend lockdowns to contain the pandemic, ing of Ministers of Commerce in the Gulf to identify existing laws on food security emptying out roads, drastically reducing Cooperation Council (GCC). across GCC member states, to pave the flights, and bringing many economic The meeting was held via video conference way for the adoption of a unified draft law activities to a halt. to follow up on recent developments across on food security and to secure a strategic The report released on Thursday from the the region and coordinate efforts to contain stockpile. group’s secretariat in Vienna illustrates why the economic repercussions of the outbreak The meeting also discussed the recom- they’ll need to deliver the pledged reductions of the novel Coronavirus (Covid-19). mendations put forward by the Technical in full. Discussions touched on the outcomes Council of the GCC Standardisation Or- Even if Opec members fully implement their and recommendations put forward dur- ganisation and the General Secretariat’s share of the agreed cutbacks, they’d still be ing the meeting of the Undersecretaries role in following up on the implementa- producing more than the market requires in of the Ministries of Commerce in GCC tion of council’s recommendations to the second quarter. countries, which was held on April 9, also guarantee the interests of all member With perfect compliance, the 13 nations via video conference. states. would be pumping about 23.4mn barrels a The meeting discussed the topics on In light of the discussions, participants day, or roughly 3.7mn more than the “call on the meeting’s agenda, particularly the stressed the importance of forming a Opec.” issue of food security, and considered team of liaison officers representing the Things could be even tougher for the the adoption of unified draft law on the ministries of commerce in GCC states organisation than it’s forecasting. subject, and the recommendations of the to follow up on the latest developments, While the group slashed forecasts for Technical Council of the GCC Standardi- exchange information and coordinate in global oil demand this year, their estimates sation Organisation to address the crisis order to overcome challenges hindering are still considerably more optimistic than and its repercussions. the flow of goods between member coun- those of the International Energy Agency, The meeting highlighted the excep- tries, and propose appropriate solutions. the institution that advises consuming tional circumstances that countries The GCC commerce ministers ex- nations. around the world are facing, and the im- pressed satisfaction at the outcomes and Opec sees world oil demand contracting by pact on economic and trade sectors as recommendations to combat the pan- 6.8mn barrels a day in 2020, while the Paris- well as efforts to restore balance to the demic, and hoped for an end to the crisis based IEA on Wednesday projected a slump global economy and international and and a global and regional economic re- HE the Minister of Commerce and Industry Ali bin Ahmed al-Kuwari participates in the Second of just over 9mn barrels a day. regional trade. covery. Extraordinary Meeting of Ministers of Commerce in the GCC via video conference.

Qatar government debt ‘mitigated’ Hamad Port expansion to support Qatar’s by ‘credible’ currency peg: Moody’s non-hydrocarbon growth, says Moody’s

By Pratap John GDP in 2019. Our assessment of Qatar’s fiscal Business Editor strength is also based on the government’s By Pratap John “The impact of lower prices will prudent budgeting, which has yielded Business Editor take time to filter through in Qa- persistent fiscal surpluses in the past while tar as the hydrocarbon exports are Qatar’s high government debt and a also softening the negative fiscal impact mainly liquefied natural gas (LNG) relatively high share of foreign-currency during the periods of oil price declines,” atar’s plans to accelerate sold on long-term contracts with debt is “mitigated by a credible” currency Moody’s said. the Hamad Port expan- pricing that follows oil prices with peg to the dollar, backed by its large external The structural shift in the oil market Qsion project by bringing a three to six month lag. For Qa- assets and the central bank’s foreign since 2014 “eroded” Qatar’s hydrocarbon it forward to 2020 from an initial tar, this means that the bulk of the reserves, Moody’s Investor Service has said income, which led to a “significant fiscal target date of 2030 will support fiscal impact of lower oil prices in an update. deterioration” in 2015-17, highlighting the the country’s non-hydrocarbon will materialise during the second Qatar’s ‘a1’ fiscal strength is above the initial degree of vulnerability to such oil price growth over the next several years, half of 2020 and in 2021,” Moody’s score of ‘a3’, taking into account several declines. Moody’s Investor Service has said said. considerations, it noted. “However, the fiscal breakeven oil price in an update. “We expect that lower oil prices According to Moody’s, government revenue of around $55/barrel implied by the 2020 On completion, the Hamad Port will reduce government revenue is mostly denominated in foreign currency, budget is lower than for most other GCC will be one of the largest deep- by about 5% of GDP in 2020 and including budgetary hydrocarbon revenue sovereigns and below our medium-term oil water seaports in the world with another 2% of GDP in 2021. We and extra-budgetary investment income price assumptions,” Moody’s said. a capacity of 12mn twenty-foot in turn expect Qatar to post a fis- from offshore assets held by the Qatar The large assets accumulated during equivalent units (TEUs), Moody’s A ship decks at the Hamad Port in Doha (file). On completion of its cal deficit of 1.6% of GDP in 2020, Investment Authority. periods of high oil prices and managed by said. expansion, the Hamad Port will be one of the largest deep-water which will widen to 4.1% of GDP in Finally, entities included in its calculation the sovereign wealth fund mostly offshore “However, these plans are likely seaports in the world with a capacity of 12mn twenty-foot equivalent 2021, compared to a surplus of 1% of other non-financial public-sector debt were available as a fiscal buffer since oil and to be delayed due to the effects units, Moody’s said. of GDP 2019. have generally been profitable and the gas prices fell in 2014, but the government of the coronavirus pandemic,” “This forecast assumes that the risk of their liabilities crystallising on the has deliberately chosen debt financing over Moody’s said. to 126mn tonnes per year from expect the hydrocarbon sector to decline in oil prices will be partly government’s balance sheet is likely to be asset liquidation. In the medium term, Moody’s 77.5mn tpy. remain a drag on growth until at offset by lower overseas spend- lower than the headline number would This led to more than a doubling of Qatar’s expects Qatar’s overall growth to “We expect real hydrocarbon least 2025, when we expect the ing by Qatar Petroleum, which suggest. government debt between 2014 and 2019, accelerate during 2022-2024 be- output to remain flat in 2020, - af new LNG trains to start coming on will allow the national oil and gas The national airline, Qatar Airways, which Moody’s said. cause of the country’s hosting of ter an unexpected decline of 1.9% stream,” Moody’s said. company to transfer more rev- Moody’s expects to post losses as a result of “We estimate that some of this additional the FIFA World Cup in 2022 and in 2019, whereas we are assuming Moody’s has reduced its year- enue to the budget. The forecast the global coronavirus pandemic, has debt borrowing was used to inject equity into the the investment spending on the that the non-hydrocarbon sec- average assumptions for the Brent also assumes that during 2020 the of only around 3% of GDP. Qatar Central Bank and helped to boost its expansion of LNG output capacity. tor contracts 1%, after growing crude benchmark oil price to $40- government will delay some non- “This debt is dwarfed by the QIA assets, foreign currency reserves during 2014-15 During the course of 2023-27, 1.1% in 2019. “Nevertheless, the $45 a barrel in 2020 and $50-$55 in essential capital spending, up to which we estimate to be close to 180% of and in 2018,” Moody’s noted. QP is targeting to increase its LNG risks to these growth projections 2021, a 33% and 17% decline from 2.5% of GDP, in order to limit fiscal production capacity to 110mn are skewed to the downside. We the 2019 average, respectively. deterioration,” Moody’s said. Gulf Times 2 Friday, April 17, 2020 BUSINESS

Bloomberg QuickTake The end of cash?

By Srinivasan Sivabalan US cities have made cashless stores 86% of the cash there with new ones, easier to keep track of money digitally. London illegal to prevent discrimination.) Still, aiming to curb “black money.” The The first automated teller machine fear of contagion could accelerate the resulting currency shortage was so bad appeared in London in 1967, but debit general trend to more digital payments, it cut into economic growth. cards only began to be issued in Do we still need cash? Humans have according to the Bank of International The Background large numbers in the 1980s as ATM used all sorts of things as stores of Settlements. More than 75% of adults networks grew. Online banking took value such as rare metals and strings in Kenya use the mobile-wallet service Since Roman times, people have tried off in the following decade. of shells. Over time the objects have M-Pesa, for paying bills or getting paid out many alternatives to carrying The Argument become more ephemeral, from coins themselves. China’s central bank is loads of cash. Arab merchants to paper to digital forms. Economists already rushing to mint its own digital developed bills of exchange for For governments, getting rid of cash see great payoffs in a cashless currency for a country where even financing international transactions, would cut minting and distribution A customer uses an iPhone to pay via the Apple Pay system, from their society: Lower costs for businesses street-food sellers in small towns will a system that spread to Europe in expenses and make it easier to American Express account, at the check-out till inside a Pret A Manger store in and new tools to manage economies, prefer to scan a QR code on a mobile the late Middle Ages. The earliest crack down on tax evasion and drug this arranged photograph in London (file). Economists see great payoffs in a stymie tax evasion and fight money payment app such as WePay or AliPay known example of a modern check trafficking. Stores could save on cashless society: Lower costs for businesses and new tools to manage laundering. Critics see an erosion of than make actual change. A credit-card was written by hand and drawn on cash-handling costs, reduce theft and economies, stymie tax evasion and fight money laundering. privacy, frightening new powers for consortium is working to extend the an account at Clayton and Morris, possibly earn more if faster checkouts governments and another sign of system globally. In most developed a goldsmith bank in London, on led to more transactions per hour, a flick of a switch. Phone networks can Billions of people in the developing widening inequality. Central bankers, countries, however, the value of cash February 16, 1659. The next revolution as some salad chains found in a trial. fail, or be vulnerable to a cyberattack world depend on cash to buy small meanwhile, worry about losing control in circulation has risen since the started with a forgotten wallet. (There are still card fees to consider; or power outage, as residents of Puerto amounts of goods, often for mere cents. of the supply of money to digital financial crisis of 2008-2009 along In 1949, US entrepreneur Frank studies have differed on which mode Rico found after Hurricane Maria. The Not all of them can afford phones or networks like Facebook. with the number of digital payments, McNamara visited the Majors Cabin ends up cheapest.) Some economists Fed has stayed on the sidelines, saying other means of interacting with a digital The Situation suggesting cash (in large bills) is being Grill restaurant in New York and had say that without cash, central banks there are “substantial” issues around cash network. Those without face increasingly used as a store of value an embarrassing moment before his could fight recessions more effectively cybersecurity to be resolved. For the becoming second-class citizens. On In the US, debit cards first beat out cash in uncertain times, especially with wife paid the tab. But it gave him an because they’d have an effective way world’s poor, going cashless would one hand, services like Paytm in India as the top way to pay in 2018, according rock-bottom interest rates on savings idea, and months later he returned to to impose negative interest rates — cut both ways. Facebook’s ambitious and Kenya’s M-Pesa have let people in to a Federal Reserve survey. As the accounts. Despite the growth of digital the same restaurant, this time paying basically a tax on savings meant to plan to create a global digital currency remote villages try out newer services coronavirus pandemic spread in early wallets like Paytm, most Indians still with a small cardboard card. Thus was spur spending. Critics say that in a called Libra ran into a wall of political like micro-business loans. On the other, 2020, some merchants in Seattle and rely on cash, as demonstrated when born the credit-card industry. Shortly digital-only economy, governments opposition over such issues as data some people have found themselves Sydney tried to stop accepting cash the government in 2016 suddenly thereafter, banks began adopting and banks could take control of your protection, national sovereignty and ensnared by sky-high interest rates and altogether, calling it unsanitary. (Some replaced the larger bills that made up computing systems that made it financial life, leaving you penniless with money laundering, forcing a rethink. hounded by e-debt collectors.

Mena M&As IMF sees crisis-hit Lebanon’s total $14.8bn in first quarter

he mergers and acquisitions (M&As) in the Middle East and North Africa (Mena) output shrinking 12% in 2020 Ttotalled $14.8bn in the first quarter (Q1) of this year. Reuters Investment banking fees in the Mena Beirut reached an estimated $188.8mn in Q1 2020, up 11% from last year’s slow start, with triple- digit gains recorded across M&As advisory he International Monetary and equity underwriting fees, said Refinitiv, Fund (IMF) has said it ex- a global provider of financial market data and Tpected Lebanon’s GDP would infrastructure. shrink 12% in 2020, amid a financial The value of M&As in the review period was crisis that has drained the country however 8% lower year-on-year. The number of hard currency and prompted it to of deals has increased 4% over the same period. default on debt payments. The monthly M&A has increased in value Coming as part of its 2020 Re- for the third consecutive month, with March gional Economic Outlook for the 2020’s $6.1bn marking the highest monthly to- Middle East and Central Asia, a re- tal in 11 months. port issued by the IMF said Leba- Deals in the industrials sector accounted non’s real GDP had contracted by for 43% of Mena target M&A activity in Q1 6.5% in 2019 and that inflation 2020. would hit 17% for 2020 versus 2.9% Barclays topped any Mena involvement in the year before. the announced M&A financial advisor league Lebanon is in the throes of a table in Q1 2020 with a 49% market share. sweeping financial crisis that has The Mena equity and equity-related issu- seen its currency slip some 50% ance was $782.9mn in Q1 2020, more than on a parallel market, unemploy- four-times the value recorded in the year-ago ment soar, and banks impose tight period, despite a 50% decline in the number of capital controls to hold on to scarce deals. dollars. The Mena debt issuance totalled $19.5bn in In a draft government economic Q1 2020, down 40% year-on-year, and a four- rescue plan that surfaced last week, year low. After a strong start, with over $9bn Lebanon said it would need $10bn- raised in both January and February, the issu- $15bn in external financing and ma- ance in March slowed to just $571.9mn, mark- jor bank restructuring to pull itself ing the lowest monthly total since August 2019. from crisis, and said IMF funding Qatar recently issued $10bn in bonds in could play a role. tranches of five, 10, and 30 years, thus becom- That plan has come under heavy ing the first sovereign from the Gulf Coopera- criticism however, in particular its tion Council region to successfully return to the proposal to take “a transitory excep- international debt markets. tional contribution from large de- The Gulf country launched $2bn in five-year positors” to help cover huge losses to bonds, $3bn in 10-year notes and $5bn in 30- the financial system. Medical staff react during a music concert held by Ahla Fawda NGO under the title “We will overcome this ordeal together” in support of hospital staff and year debt. The new 2025, 2030 and 2050 bonds The government has said it would patients at the Rafik Hariri public hospital in the capital Beirut amid the Covid-19 pandemic yesterday. Lebanon is in the throes of a sweeping financial crisis launched at a final spread of 300 basis points hold talks with various stakeholders that has seen its currency slip some 50% on a parallel market, unemployment soar, and banks impose tight capital controls to hold on to scarce dollars. (bps) and 305 bps, respectively, over the un- before any plan is finalised. derlying five, and 10-year US Treasury notes, Lebanon has requested IMF tech- “We know that Lebanon is cur- Azour said when asked about the ing”, especially in light of the new against the country’s elite erupted and a final yield of 4.40% on the new 30-year nical assistance but not a funding rently working on a reform plan draft plan. coronavirus, which would further on October 17, accelerating a long- maturity. programme tied to reforms. and we look forward when we re- French Foreign Minister Jean- hamper the economy. brewing economic crisis. In 2018, Qatar became the first sovereign in It is hoping any such reforms will ceive it officially to review it and Yves Le Drian said on Wednesday In its previous outlook in Octo- The Fund also said on Wednesday the world to issue Formosa bonds listed on the help draw billions of dollars in pre- give our feedback to the authori- that “urgent reforms that the coun- ber, the IMF forecast Lebanon GDP that the government’s fiscal defi- Taipei stock exchange and the new 2050 bonds viously pledged funds from donor ties,” IMF Middle East and Central try needs are not happening” and growth of 0.9% for 2020. cit would reach 15.3% in 2020, from are expected to be dual listed on both the Lux- countries. Asia Department director Jihad said the situation was “very worry- That was before sweeping protests 10.7% in 2019. embourg and Taipei stock exchanges.

Tunisia tourism could lose $1.4bn; govt seeks guarantee to issue bonds QSE declines amid IMF’s weak projections for Mideast

Reuters Tunis By Santhosh V Perumal Trade turnover and volumes were on Foreign institutions turned net sell- value more than doubled to QR88.7mn on Business Reporter the increase in the market, where the in- ers to the tune of QR91.14mn compared a 44% increase in deals to 2,850. dustrials and realty sectors together ac- with net buyers of QR15.68mn on April The insurance sector’s trade volume Tunisia’s vital tourism sector could lose $1.4bn and 400,000 jobs counted for more than 64% of the total 15. soared 88% to 3.5mn stocks and value this year due to the new coronavirus pandemic, an official docu- he Qatar Stock Exchange yester- trading volume. The Gulf institutions’ net buying weak- more than doubled to QR9.37mn on 380 ment showed, as the country seeks a loan guarantee from bilateral day lost 275 points from its key in- The Total Return Index shrank 2.92% to ened substantially to QR4.63mn against transactions. partners to issue sovereign bonds this year. Tdex and QR15bn in capitalisation, 16,434.26 points, the All Share Index by QR12.69mn the previous day. The telecom sector reported a 41% In a letter sent to the International Monetary Fund (IMF) that was reflecting the International Monetary 2.78% to 2,671.57 points and the Al Rayan However, Qatari individuals were net surge in trade volume to 3.93mn shares, reviewed by Reuters, Tunisia’s central bank governor and finance Fund’s (IMF) weak economic projections Islamic Index (Price) by 3.13% to 1,854.21 buyers to the extent of QR41.97mn com- 10% in value to QR12.69mn and 75% in minister said the country’s economy would shrink by up to 4.3%, the for the region in view of the pandemic points. pared with net sellers of QR23.35mn on deals to 673. steepest drop since independence in 1956. Covid-19. The insurance index plummeted 4.04%, Wednesday. The real estate sector’s trade volume The IMF, which approved last Friday a $745mn loan to Tunisia to Foreign institutions were seen bearish real estate (3.6%), telecom (3.57%), banks Domestic funds turned net buyers to shot up 31% to 36.16mn equities, value counter the effects of the coronavirus, said a new funding pro- as the 20-stock Qatar Index fell 3.11% to and financial services (2.98%), consumer the tune of QR27.17mn against net sellers by 76% to QR59.3mn and transactions by gramme with Tunisia could start in the second half of this year. 8,567.32 points, reflecting the concerns goods and services (2.61%) and industri- of QR1.37mn on April 15. 60% to 1,469. The size of the new programme remains unknown. over the IMF’s projections of the biggest als (2.38%), while transport was up 0.12%. The foreign individuals were seen net The banks and financial services sec- The North Africa country has confirmed 747 cases of the virus and slump in the Middle Eastern economies in Moe than 82% of the traded constitu- buyers to the tune of QR10.35mn. tor saw a 19% jump in trade volume 34 deaths, and last month imposed a lockdown set to last until at four decades amidst the coronavirus out- ents extended gains with major movers The Arab individuals turned net buy- to 20.29mn stocks, 41% in value to least April 19. break and historic oil price falls. being Qatar Insurance, Barwa, United De- ers to the extent of QR5.29mn compared QR151.03mn and 79% in deals to 5,974. The outbreak is hammering its tourism sector which represents The weakened buying interests of the velopment Company, Ooredoo, Vodafone with net sellers of QR1.4mn the previous However, the consumer goods and nearly 10% of gross domestic product (GDP) and is a key source of Gulf funds also had its role in dampen- Qatar, QNB, Qatar Islamic Bank, Com- day. services sector’s trade volume plummeted foreign currency. ing the bourse, whose year-to-date losses mercial Bank, Doha Bank, QIIB, Masraf The Gulf individuals were also net buy- 50% to 12.5mn shares; while value gained “We are working with partner governments on a potential guaran- swelled to 17.74%. Al Rayan, Dlala, Qatar Oman Investment, ers to the tune of QR1.76mn against net 13% to QR33.55mn and transactions by tee for future sovereign bond issuances in the currently difficult in- Market capitalisation plunged about 3% Qatar German Company for Medical De- sellers of QR2.28mn on Wednesday. 73% to 1,521. ternational context,” the central bank governor and finance minister to QR482.221bn mainly owing to large and vices, Qatar National Cement, Industries Total trade volumes rose 19% to The market witnessed a 38% shrink- wrote in their letter. midcap segments. Qatar, Aamal Company, Mesaieed Petro- 122.35mn shares, value by 50% to age in the transport sector’s trade vol- The IMF said that the fiscal deficit in Tunisia would rise to 4.3% of Islamic stocks were seen declining fast- chemical Holding and Qamco; whereas QR367.06mn and transactions by 62% to ume to 3.72mn equities, 31% in value to GDP this year, compared with 2.8% originally expected, due to the er than the other indices in the market, Gulf International Services, Qatar Islamic 13,498. QR12.41mn and 11% in deals to 631. need for extraordinary expenditures over this crisis. where local retail investors and domestic Insurance and Gulf Warehousing were The industrials sector’s trade volume In the debt market, there was no trading funds were seen bullish. among the gainers. almost doubled to 41.65mn equities and of sovereign bonds and treasury bills. Gulf Times Friday, April 17, 2020 3 BUSINESS

Indonesia boosts cheap Asia’s growth in 2020 to halt fuel imports with plans to for first time in 60 years: IMF cut refining

Reuters Bloomberg Tokyo Jakarta

sia’s economic growth this year Indonesia’s national oil company will grind to a halt for the first plans to stockpile crude oil and Atime in 60 years, as the corona- refined products with a global virus crisis takes an “unprecedented” glut sending prices to a near toll on the region’s service sector and two-decade low, and idle some major export destinations, the Interna- of its refining capacity to coun- tional Monetary Fund said yesterday. ter weak domestic fuel demand. Policymakers must offer target- The steps, which include buy- ed support to households and firms ing cheaper imported crude and hardest-hit by travel bans, social dis- selling the expensive domestic tancing policies and other measures supply, will help PT Pertamina aimed at containing the pandemic, said cut costs as strict social distanc- Changyong Rhee, director of the IMF’s ing rules imposed in the wake of Asia and Pacific Department. coronavirus outbreak hurts fuel “These are highly uncertain and consumption, according to Pres- challenging times for the global econ- ident Director Nicke Widyawati. omy. The Asia-Pacific region is no ex- Pertamina bought additional ception. The impact of the coronavirus 10mn barrels of crude when on the region will be severe, across the prices dropped to $24 a barrel, board, and unprecedented,” he told a Widyawati told lawmakers in virtual news briefing conducted with Jakarta yesterday. The company live webcast. plans to increase fuel stockpiles “This is not a time for business as by importing 9.3mn barrels of usual. Asian countries need to use all RON-92 gasoline, and boost- policy instruments in their toolkits.” ing liquefied petroleum gas- re Asia’s economy is likely to suffer zero serves to meet rising household growth this year for the first time in 60 demand as more people stay at years, the IMF said in a report on the home, she said. Asia-Pacific region released yesterday. While Asia is set to fare better than The steps, which include other regions suffering economic -con buying cheaper imported tractions, the projection is worse than crude and selling the the 4.7% average growth rates through- expensive domestic supply, out the global financial crisis, and the will help PT Pertamina 1.3% increase during the Asian financial cut costs as strict social crisis in the late 1990s, the IMF said. distancing rules imposed The IMF expects a 7.6% expansion in the wake of coronavirus in Asian economic growth next year on outbreak hurts fuel the assumption that containment poli- consumption cies succeed, but added the outlook was Shipping containers sit stacked next to gantry cranes at the Yangshan Deepwater Port in Shanghai. Asia’s economy is likely to suffer zero growth this year for the first highly uncertain. time in 60 years, the IMF said in a report on the Asia-Pacific region released yesterday. Crude oil futures slumped to Unlike the global financial crisis trig- the lowest in 18 years this week gered by the 2008 collapse of Lehman China’s economy is expected to grow growth outlook as the virus could return offer targeted support to households focus on preventing small firms from on growing concerns over weak Brothers, the pandemic was directly by 1.2% this year, down from 6% growth and delay normalisation, the IMF said. and firms hit hardest by the pandemic, going under to stop a sharp increase in demand as the virus outbreak hitting the region’s service sector by in the IMF’s January forecast, on weak “Chinese policymakers have reacted the IMF said, calling also for efforts to unemployment. wreaks a havoc on the global forcing households to stay home and exports and losses in domestic activity very strongly to the outbreak of the provide ample liquidity to markets and Emerging economies in the region economy. shops to shut down, the IMF said. due to social distancing steps. crisis... If the situation becomes ag- ease financial stress faced by small and should tap bilateral and multilateral Indonesia has reported 496 The region’s export powerhous- The world’s second-largest economy gravated, they have more room to use midsize firms. swap lines, seek financial support from fatalities from the pandemic, es were also taking a battering from is expected to see a rebound in activity fiscal, monetary policies,” Rhee said. Rhee warned that direct cash trans- multilateral institutions, and use capital with over 5,500 people infected, slumping demand for their goods by later this year, with growth to bounce “Whether that would be needed will fers to citizens, part of the US stimulus controls as needed to battle any disrup- prompting authorities to impose key trading partners such as the United back to 9.2% next year, the IMF said. really depend on progress in contain- package, may not be the best policy for tive capital outflows caused by the pan- partial lockdowns in the Greater States and European countries, it said. But there were risks even to China’s ing the virus.” Asian policymakers must many Asian countries which should demic, the IMF said Jakarta area and nearby cities to contain the virus. Indonesia’s fuel consump- tion dropped about 34% this month from the average daily use in January as cities tightened movement of people and vehi- Philippine central bank cuts interest rates cles to prevent the spread of the pandemic. “This is the time to do main- Reuters governor Benjamin Diokno told reporters. said on Sunday. The central bank has the au- tenance,” Widyawati said, re- Manila Diokno has flagged the need for “deeper” thority to slash banks’ reserve requirement ferring to refineries. “We will rate cuts as the Philippines, like many coun- ratio (RRR) by 200 bps points more this year. start to lower capacity for re- tries, grapples with the severe economic and That will be on top of its cut of 200 bps last finery operations, depending he Philippine central bank cut its health effects of the Covid-19 pandemic. month in the ratio to boost liquidity in the on demand situation” includ- benchmark interest rate by 50 basis Reported infections crossed 2.05mn and economy. ing gradually shutting Balik- Tpoints in an off-cycle move yesterday, more than 136,600 people have died world- Curbs for nearly a month on movement papan refinery on Borneo is- to support an economy in what the bank’s wide, according to a Reuters tally. and gatherings in and around the capital, land starting this month, she governor has called a once-in-a-lifetime cri- The Philippines has reported 5,660 cas- Manila, have dampened domestic consump- said. sis due to the coronavirus outbreak. es, the highest in Southeast Asia, and 362 tion, a key driver of economic growth. Pertamina will also reduce The cut, the year’s third such move, took deaths. Alex Holmes, economist at Capital Eco- spending to maintain the com- the rate on the overnight reverse repurchase The Philippines, among the first regional nomics, said yesterday’s policy rate cut will pany’s financial health, Widya- facility to a record low of 2.75%. The central nations to take drastic measures against the not be the last move from the central bank wati said. bank cut the policy rate by 25 bps in February virus by ordering quarantine for half of the given that the economic activity in the Phil- The company’s 2020 revenue and by 50 bps in March. population of more than 107mn, is forecast ippines is “collapsing”. He expects the Phil- is seen dropping 30% from year It has cancelled its May 21 policy meeting. to post zero growth this year in the govern- ippine economy to contract 4% this year ver- ago and 38% from this year’s “Monetary policy works with a lag and it ment’s best case scenario. sus last year’s 5.9%. target with average crude price is the sense of the MB (Monetary Board) that The Philippines “is now facing a once-in- “As such, we think it is only a matter of Diokno: Monetary policy works with a lag and it is the sense of assumed at $38 per barrel and a cut of 125 bps for the first half of the year a-lifetime crisis” calling for “bolder but ap- time before more easing is announced”, Hol- the Monetary Board that a cut of 125 bps for the first half of the rupiah averaging 17,500 to as is appropriate,” Bangko Sentral ng Pilipinas propriate moves” by the central bank, Diokno mes said. year is appropriate. dollar, Widyawati said.

In hunt for ventilators, Chinese JD’s retail chief takes lead as billionaire founder recedes firm’s denial raises questions Bloomberg ing that by pushing people toward apps through potentially the greatest global packages. “When I made the call, most Hong Kong that support multiple functions from economic shock in at least a generation. people were against me,” Xu recalled. Bloomberg The deal was flagged by non-profit live video streaming to chatting, making That came on the heels of a Chinese His solution was to stretch it out over Hong Kong watchdog Mexicans Against Corruption bespoke or specialised services more slowdown as well as the rise of upstarts several weeks around the company’s & Impunity, which questioned why the Over two decades, Richard Liu built a appealing. such as Pinduoduo Inc, which in 2019 June 18 anniversary and use JD’s long- government would award a direct order tiny suburban electronics outlet into “Many people still know JD as online overtook JD in market value. standing expertise in electronics.“6.18” Mexico’s desperate race to secure to a distributor that’s not known for China’s second largest e-commerce shopping, but we have many businesses Born and raised in a military com- was born and others including Alibaba ventilators before coronavirus cases sourcing medical devices. empire. and sales that come from all channels, pound in Beijing, Xu decided early on to played catch-up. overwhelm the public health system is Previously, Levanting has won con- Now, the billionaire entrepreneur both online and off-line,” Xu said in a take a different tack by going into sales In 2019, sales during the campaign hit pushing it into unknown corners of the tracts with energy companies including is retreating from the spotlight and video-conference interview.“JD will con- and marketing. a record $29bn. medical-supply market, with at least state oil producer Pemex and the Federal entrusting fast-rising lieutenant Xu Lei nect with users more closely. JD will be He maintains a subtly rebellious “Apart from Liu, those who did real one contract raising questions over its Electricity Commission. with steering JD.com Inc through the everywhere.” patina to this day, sporting a tattoo on jobs at JD are now emerging from legitimacy. “Public documents don’t specify the greatest crisis since its founding. Xu spent much of the past decade his left arm and ear-stud to go along the backstage, which is a good thing Chinese medical-device maker Beijing brand and model of the devices,” the Liu is gradually ceding more control climbing the corporate ladder at a com- with a passion for the Rolling Stones. to investor confidence,” said David Aeonmed Co, which is said to be the group said on its website. to Xu, who runs JD’s core retail opera- pany with more sales than Boeing or After early careers with PC maker Dai, a Hong Kong-based analyst with supplier of an urgent order for 2,500 When contacted by Bloomberg, tion and devised its answer to Alibaba Sony, till he assumed formal stewardship Lenovo Group Ltd and digital ad agency Bernstein. ventilators, said it has no knowledge of Aeonmed said it doesn’t have a deal with Group Holding Ltd’s widely celebrated of JD’s main operation in 2019. Allyes, he joined JD in 2009 to oversee On Liu, he said: “I don’t think he has a the contract or the firm acting as the any parties to export 2,500 ventilators Singles’ Day phenomenon. He’s viewed as Liu’s hand-picked marketing for its then-nascent online clear succession plan, but it’s clear that middle man. to Mexico. The Chinese firm previously Xu has led JD’s delegation to Davos choice to lead the company into the mall. he now has a second in command.” Levanting Global Servicios LLC SA, a warned on its website of a rash of misin- since 2019 and replaced Liu as head of future of hyper-retail, where the lines After taking a two-year hiatus to To be sure, no one’s predicting Liu third-party distributor that won the con- formation regarding its equipment and a key subsidiary this month, burnishing between physical and online commerce try and get a footwear-selling startup will relinquish all control imminently, tract with Mexico’s government to fulfil shipments. his credentials as presumptive heir. blur through technology such as aug- off the ground, he returned in 2013 to and many things could change during a the orders, disputes that account. Mexico joins nations around the world In an exclusive interview, the 45-year- mented reality. oversee an overhaul of JD’s main online volatile post-Covid 19 era. It said it’s already paid Aeonmed in scrambling to secure ventilators, as old sketched out how JD’s business with- JD made it through China’s outbreak website, scrapping its years-old 360buy The billionaire maintains an iron grip more than $5mn for the equipment, but the global death toll from the coronavi- stood the initial shock of Covid-19 and and subsequent lockdown by relying appellation, and launched the site’s now- on the company thanks to a dual-share perhaps the company can’t yet disclose rus tops 128,000 and fuels demand from where it plans to go in the future. on its own warehouses and delivery familiar dog mascot. structure in which he owns roughly 15% the order. Milan to New York. In five years, the flagship JD.com personnel – a costly approach rivals and The launch of JD.com’s June 18 “6.18” of equity but 79% of the vote. In China, “they are checking every Hospitals, which usually have just a website and platform should contribute analysts have questioned. event in 2010. Tencent and Walmart Inc have stakes factory to see what they do with the few of the machines, now face the need less than half of the company’s revenue JD, China’s closest analog to Amazon. It was Xu who insisted in 2014 that in the firm as well. ventilators, so that’s what’s happening for one per critically ill patient. as consumers gravitate toward social com Inc, already serves more than JD needed to come up with its own But that’s precisely what investors with the delay of the company,” Bald- That shortfall is not easy to fill media town squares like Tencent Hold- 360mn people – surpassing the US signature gala to counter an event that worried about after Liu was arrested in emar Perez Rios, Levanting’s owner, said because the complex devices can’t ings Ltd’s WeChat. population. was racking up records annually. the US on suspicion of rape in 2018. by phone from Texas. “Everything has be churned out as quickly as other Xu wants to create more platforms Xu now hopes to extend its presence But opposition to the idea was fierce Authorities in Minneapolis decided been arranged, but because they aren’t medical supplies like surgical masks or tailored toward different consumers on social media and invest in hot new because executives knew it couldn’t not to press charges after reviewing evi- authorised to speak now, at the moment disinfectant. On April 8, China’s Ministry and shopping behavior along the lines areas like grocery delivery. afford to host a 24-hour deals-fest dence, but the investigation highlighted that I have everything ready – once we of Industry & Information Technology of JD’s recently launched Groupon-like Xu’s steady ascent now places him in that could cast its logistics network in key-man risk at the e-commerce giant, are shipping – we’ll be able to talk about called for a “sober understanding” of discounts app. the unenviable position of piloting the disarray – for context, in 2019, Alibaba’s forced Liu to back away from the public everything.” China’s ventilator capacity. The Covid-19 pandemic is accelerat- company’s bread-and-butter business partners delivered upwards of a bn spotlight and hurt JD’s stock in 2018. Gulf Times 4 Friday, April 17, 2020 BUSINESS

Pakistan defers plan to upgrade multi-billion dollar ML-1 railway line

Internews Sector Development Programme packages over nine years period Academy Walton in Lahore; have a 25-tonne axle load against the crossings and fencing for track Islamabad (PSDP). The ML-1 project was from January 2021 to December passenger facilities, development of existing 22.86 permissible axle load. isolation. According to an official deferred during a meeting of the 2029. Under the first package from important railway stations, including Also, the line capacity will increase announcement, the Central Central Development Working Party January 2021 to December 2024, six those at Karachi, Hyderabad and from 34 to 171 trains per day and the Development Working Party (CDWP) The government of Pakistan has (CDWP) held under deputy chairman tasks will be completed. Rohri in Sindh, besides Multan, trail load on the freight trains would approved three projects worth deferred the approval of a much- Planning Commission Mohammad The ML-1 starts from Karachi, passes Lahore and Rawalpindi in Punjab. increase from 2,400 to 3,400 tonnes. Rs1.04bn and recommended one awaited up-gradation of Mainline-1 Jenhanzeb Khan in the chair. through Kotri-Hyderabad, Rohri, Similarly, railway stations at The track would be used both for position paper worth Rs20bn to railway from Peshawar to Karachi The Planning Commission, as well as Multan, Lahore, Rawalpindi and Nowshehra and Peshawar would passengers and freight trains. ECNEC for consideration. and the construction of Havelian Dry other ministries, raised objections on terminates at Peshawar. be upgraded in the Khyber The addition of 814km new track Secretary Planning Zafar Hasan, Port with an estimated cost of $9bn, various aspects of the financing of The line is 1,872 km long, including Pakhtunkhwa province under the would result in doubling the entire senior officials from federal local media reported yesterday. this project and asked the ministry of the 55 km long Taxila – Havelian project. track from Karachi to Peshawar. governments also participated in the The multi-billion project is proposed railways to remove loopholes in the section and 91km long Lodhran- The up-gradation of ML-I will Besides, the existing 2,655km track meeting while representatives from to seek a loan of $8.255bn from PC-1 in the next meeting. Khanewal section. be carried out as the speed of will be upgraded. provincial governments participated China under the China Pakistan The PC-1 submitted by the railways The project envisages up-gradation passenger trains would increase Also, the grade separation would through video conference. Economic Corridor (CPEC) while ministry for proposed execution of of ML-1, establishment of a dry from 110 km/h to 160 km/h, speed of ensure the safety of train operations Three projects related to transport the Pakistani side will finance ML-1 in three phases states that the port near Havelian Railway Station, the freight trains will also increase and result in the elimination of and communications were presented $917.23mn through the Public project is to be completed in three up-gradation of Pakistan Railway to 120km/h. The new track would manned and unmanned level in the meeting.

Pakistan among 76 China’s fledgling car rebound countries to get debt faces risks of parts shortage relief from Bloomberg May 1: Beijing ust as China’s auto plants are re- covering from shutdowns caused by Minister Jthe coronavirus outbreak, they are facing a new headache: potential parts shortages. Internews The virus is now causing production Islamabad disruptions in Europe, North America and Japan, which supply crucial com- ponents to automakers in China, the akistan’s Foreign Minister industry’s biggest market. Shah Mahmood Qureshi Those at risk range from global play- Phas said about 76 develop- ers such as Tesla Inc and BMW AG to ing countries including Pakistan local contenders including Guangzhou will get debt relief from May 1, Automobile Group Co and Zhejiang 2020 initially for a period of one Geely Holding Group Co, all of whom year. could face disruptions if the pandemic In a statement yesterday re- drags on. Those fears are a reminder garding successful economic di- that economic activity in any given plomacy of Pakistan, he pointed country is unlikely to return to normal out that the Prime Minister’s ap- until the outbreak is brought under peal for debt relief and restruc- control worldwide. turing for developing countries With auto-making suspended in Eu- was endorsed by the UN Secre- rope and the Americas, glitches in Chi- tary General, the International na could affect the only major manufac- Monetary Fund and the G20 turing region where plants are ramping countries at a meeting yesterday. up, threatening to set back the recovery The Foreign Minister said Pa- of the world’s second-largest economy kistan spends one third of its from a months-long paralysis. revenue on payment of debt and “About two months ago, people were this debt relief will greatly ben- asking how the disruption in Chinese efit Pakistan. supply chain would impact the global auto industry,” said Stephen Dyer, man- Prime Minister’s aging director of consultancy AlixPart- appeal for debt relief ners. “Now it’s the reverse.” and restructuring for China imported $36.7bn of vehicle developing countries components last year, with Germany, is endorsed by the UN Japan and South Korea representing Secretary General, the 28%, 27% and 6% of the total, respec- International Monetary tively, according to China Automotive Fund and the G20 countries Technology and Research Center, a at a meeting state-backed think tank. Signage for Tesla is displayed outside one of the company’s showrooms in Beijing. China imported $36.7bn of vehicle components last year, with Germany, Japan and The US ranked fourth, accounting for South Korea representing 28%, 27% and 6% of the total, respectively, according to China Automotive Technology and Research Centre. Shah Mahmood Qureshi said 5.9%. Billionaire Li Shufu’s Geely, the the coronavirus has badly af- top maker of Chinese-brand vehicles for some components that can be as lit- factory network. The European giant currently secured enough key parts industry groups in countries such as fected the developing economies and owner of Volvo Cars, said a poten- tle as four weeks, said Xu Haidong, a supplies major carmakers with elec- such but that its purchasing experts France are seeking green light to restart including their exports and re- tial shortage of imported components vice chief engineer at the China Asso- tronics, tires and other parts. were monitoring the situation. plants. mittances. has had a minor impact on production. ciation of Automobile Manufacturers. Robert Bosch GmbH, which provides The situation today marks a reversal One factor giving carmakers some In this background, he said, That has prompted the company to Many electronic parts in particu- fuel-injection systems and sensors, said from February, when companies from buffer is low demand, which has left the Prime Minister Imran Khan seek to switch to Chinese suppliers. lar are imported from overseas, leav- on March 20 it is “drastically” cutting Nissan Motor Co to Hyundai Motor manufacturers and dealerships with had appealed to the UN Sec- Guangzhou Auto, whose partners ing makers of higher-end vehicles that back German operations. Co were halting production in their high inventories. retary General as well as world include Toyota Motor Corp and Fiat contain a lot of software and computers Japanese component maker Yorozu respective home countries because of Buyers are slowly returning to show- leaders and financial institutions Chrysler Automobiles NV, said it is tak- vulnerable. Corp suspended operations in the US, disruptions in China. rooms though: car sales in China have to provide debt relief to the de- ing steps to ensure supply as the com- And while some carmakers in China Mexico, India and Brazil, and is running To be sure, no major part shortages been recovering since February and veloping countries to help them pany imports as much as 10% of its say they rely close to 100% on local some of its production lines in Japan, have so far emerged in China, and com- even rose during the second week of better cope with the situation. components from overseas to assemble supplies, the made-in-China parts they Indonesia, and Thailand. ponent suppliers in Europe and the US April, according to data from China He said this will enable the them in China. buy may still contain smaller imported Its operations in China were halted are preparing to re-start output in a Passenger Car Association. developing countries to divert While existing inventory offers some components, such as chips. during a government-mandated shut- timely fashion, CAAM’s Xu said in an “Premium products that have more their resources to the protection cushion, time is running out. That means virtually all carmakers down, and the company says plants in online media conference on April 10. imported components might be under of lives of the people and make Automakers in China typically carry could suffer supply shocks. Germany’s the country have now resumed 90% of The German government has been bigger threat,” said Dyer at AlixPart- their health systems more effec- about eight weeks’ supply of imported Continental AG, which is among major their output. talking with automotive companies to ners. “But the need for luxury cars is tive to respond to the challenge. parts such as engines and chips, though parts maker to halt output across its BMW said in an e-mail that it had find a way to resume production, and also affected by the coronavirus.” Sony plans to limit PlayStation 5 production in its first year

Bloomberg the people said. Sony’s chief executive console, the controller has been shared Tokyo officer Kenichiro Yoshida has said the with outside developers and the company company will aim to increase recurring feared it couldn’t control leaks, they said. revenue rather than one-time hardware Still, Sony remains unlikely to delay the Sony Corp plans to produce far fewer purchases. launch of the PS5 from the critical year- units of its upcoming PlayStation 5 in its The PS5 production volume could still end shopping season. first year than it had for the previous- change depending on the Covid-19 situa- So long as archrival Microsoft Corp generation console’s launch, according to tion, the people said. doesn’t push back the release of its next- people familiar with the matter. Sony has asked employees to work generation Xbox, also expected at the end The Tokyo-based tech giant is limiting from home to mitigate the spread of the of the year, Sony won’t delay either, the its initial production run in part because virus, and its board has been unable to people said. Some analysts believe the it expects the PS5’s ambitious specs to meet to approve business plans for the close contest for attention between the weigh on demand by leading to a high current fiscal year, including those for the PlayStation and Xbox, especially in the price at launch, the people said, asking PlayStation unit. US, may force both companies to sell their not to be identified because the subject That meeting was originally supposed new consoles at a loss. is private. to take place in March. “I think both the PS5 and Xbox Series The global Covid-19 pandemic has Sony said last month that it plans to X may end up at US$450 even though affected Sony’s promotional plans for the release results for the year ended March they would lose money at that price,” said new device but not its production capac- Attendees look at a giant screen displaying a game demonstration at Sony Computer Entertainment’s PlayStation 4 (PS4) on April 30 but may be forced to push the Damian Thong, an analyst at Macquarie ity, they added. exhibition stand at the Gamescom video games trade fair in Cologne, Germany (file). The Tokyo-based tech giant told date back due to the pandemic. Capital. The company has told assembly assembly partners it would make 5mn to 6mn units of the PS5 in the fiscal year ending March 2021, according to other The virus has already upended Sony’s Suppliers have started delivering partners it would make 5mn to 6mn units people involved in the machine’s supply chain. promotional plans. components to PS5 assemblers, who are of the PS5 in the fiscal year ending March The company may forgo hosting a scheduled to begin mass-producing the 2021, according to other people involved price to be in the region of $499 to $549, A Sony spokesman declined to com- while the PS5 remains in limited supply, public press conference for its PS5 release product by June. in the machine’s supply chain. and Bloomberg Intelligence’s Matthew ment. the people said. date and price unveiling due to infection Sony’s PlayStation chief Jim Ryan has When Sony released the PlayStation 4 Kanterman points to increased compo- Its shares were largely unchanged in Currently, Sony sells the PS4 for $300 fears. stressed that the machine’s launch should in November 2013, it sold 7.5mn units in its nent costs pushing up the price required afternoon trade. and the higher-end PS4 Pro for $400. Recently, it was forced to reveal its be simultaneous around the globe, ac- first two quarters. for Sony to break even. Sony’s strategy, according to several The company may cut these prices DualSensePS5 controller in a hurried cording to people in the company’s supply The PS5’s loftier price tag may also Sony has struggled with its price- people familiar with its plans, will be to around the time of the PS5 launch to fashion, according to people informed on chain. Covid-19 travel restrictions have deter initial take-up. setting decision for the PS5 because of rely on incumbent PlayStation 4 models stimulate new subscribers for the PlaySta- the matter. prevented Sony engineers from flying to Game developers who’ve been creating scarce components, Bloomberg News has as a bridge to get new users onto the tion Plus membership programme and While only a small circle within Sony China to direct final adjustments before titles for the next PlayStation anticipate its reported. PlayStation platform’s network services PlayStation Now game-streaming service, are privy to the appearance of the PS5 assembly plants go into mass production. Gulf Times Friday, April 17, 2020 5 BUSINESS

Indian Asian stock markets fall shares gain in on virus impact worries volatile

AFP Hong Kong trade

sian markets fell yesterday fol- Bloomberg lowing overnight woes on Wall Mumbai AStreet as more negative US economic data fuelled worries about the full impact of the coronavirus ndian stocks rose in a volatile pandemic. trading session, as inves- There had already been a spate of Itors mulled the outlook for grim economic forecasts this week, company earnings after software with the IMF warning of the worst services provider Wipro Ltd de- global downturn in a century, and clined to provide guidance for poor US economic figures released the first time since 2009. Wednesday further spooked inves- The S&P BSE Sensex ad- tors. vanced 0.7% to 30,602.61 at the The woes on Wall Street discour- 3:30pm close in Mumbai, after aged traders in Asia, where Tokyo swinging between a loss of as closed down 1.3% to 19,290.20, Hong much as 1.2% and a gain of as Kong ended 0.6% lower at 24,006.45, much as 1.4%. The NSE Nifty 50 Sydney lost 0.9% and Taipei shed Index climbed 0.8%, with about 0.7%. two stocks rising for each one Seoul was flat, while Shanghai that fell. closed 0.3% higher at 2,819.94 and “People are asking if com- Singapore was up 0.7%. panies are going to survive for The latest numbers from the United the next five years,” said Ashish States, the world’s biggest economy, Chaturmohta, a technicals and highlighted the scale of the damage derivatives analyst at Sanctum unleashed by lockdowns and social Wealth Management Pvt. “If distancing measures imposed to try they think so, they are buying and stop the spread of the virus. them now.” US retail sales plunged in March Wipro, which gets most of its while industrial production in the sales abroad, refrained from giv- same month suffered its steepest drop ing an outlook until it has greater since 1946, data showed Wednesday. certainty, it said when reporting Other reports pointed to weak quarterly results after market homebuilder sentiment and manufac- close Wednesday. turing conditions, while a Federal Re- The stock gained 0.7%. Larger serve report said American economic rival Tata Consultancy Services activity “contracted sharply”. Ltd is scheduled to report earn- “The economic data was nothing ings after the market closes yes- short of disastrous,” Ann Miletti of terday. Wells Fargo Asset Management told India’s economy may be head- Bloomberg TV. ing for its first full-year contrac- “How long can you sustain the shut- tion in more than four decades down is what’s on investors’ minds.” as the country remains under President Donald Trump has said the world’s biggest lockdown that he will on Thursday announce the to contain the coronavirus out- first plans for lifting lockdowns in the break. US – the worst-hit country with the The rupee weakened 0.4% most virus deaths and infections. to 76.7937 per US dollar after The World Health Organisation has touching 76.82, an all-time low. warned, however, that lifting virus-re- The 10-year bond yield rose lated restrictions too early could have two basis points to 6.44%. devastating consequences, with fears Pedestrians wearing protective masks and holding umbrellas cross a road in front of an electronic stock board outside a securities firm in Tokyo. Japanese shares closed Fifteen of 19 sector sub-in- of a possible second wave of infections. down 1.3% to 19,290.20 points yesterday. dexes compiled by BSE Ltd ad- “Any recovery in risk sentiment de- vanced, led by a gauge of power pends on how quickly economies can AxiCorp. “The risk of escalating eco- national Energy Agency warning that the crisis was made worse by a pric- production curbs will not be enough companies ICICI Bank Ltd pro- reopen without risking overloading nomic damage is putting... govern- 2020 was likely to be “the worst year ing war between top producers Saudi to stabilise the crude market. vided the biggest boost to the their healthcare systems and, most of ments under immense pressure to re- in the history” of the sector. Arabia and Russia. Brent Crude was down 0.4 %, while Sensex with a 4.5% jump, while all, not risking any chance of a sec- lax social distancing measures sooner, Oil has plummeted in recent weeks Riyadh, Moscow and other produc- West Texas Intermediate was up 0.6% NTPC Ltd’s 3.7% gain was the ondary spread,” said Stephen Innes, rather than later.” There was more bad to multi-year lows as coronavirus ers agreed to an output cut but in- but still just under the $20-a-barrel biggest; HCL Technologies Ltd’s chief global markets strategist at news on oil markets, with the Inter- lockdowns depressed demand, and vestors are worried that the dramatic mark. 4% drop was the steepest.

EM stocks, FX in flux before US jobless claims

Reuters but it still looked as if it would ravage the global Italy bond yields drop 20 bps London economy in the medium term. The IMF forecast Asia’s annual economic growth would grind to a halt for the first time in Reuters lion-euro plan to support coro- while the premium investors de- markets. There was no immedi- Emerging markets in Europe and the Middle East 60 years. London navirus-hit economies. But they mand to hold Italian bonds over ate confirmation from the Bank made small gains yesterday, while their Asian “Any recovery in risk sentiment depends on failed to mention using joint debt German equivalents tightened of Italy. counterparts fell after the International Monetary how quickly economies can reopen without to finance the economic recovery, 10 bps to around 216 bps. That The ECB does not publish de- Fund forecast no economic growth in Asia for risking overloading their healthcare systems and, talian government bond a measure countries like Italy had spread had ballooned above 240 tails of what it is buying under 2020. most of all, not risking any chance of a secondary yields fell across the curve called for. bps during Wednesday’s selloff. its emergency bond purchases, Investors held off large trades before economic spread,” said Stephen Innes, chief global markets Iyesterday, with two-year Yields got back some of that “I suspect they (the ECB) are meaning market players can only data from the United States and China – weekly strategist at AxiCorp. yields down as much 20 basis rise after a document showed ad- intervening because they have speculate about its presence in jobless claims and first-quarter gross domestic “The risk of escalating economic damage is points, sparking renewed specu- ditional support could be incor- seen early signs of fragmentation markets on any one day or time. product – which is expected to further reflect the putting enormous stress on governments under lation of European Central Bank porated into the next long-term between Italy and other countries Other southern European impact of the coronavirus pandemic. immense pressure to relax social-distancing intervention to tamp down bor- budget for the bloc – the Multi- this week,” said Frederik Ducro- bonds slipped too but Spanish Dismal retail sales and industrial output from measures sooner, rather than later.” rowing costs. annual Financial Framework zet, global strategist at Pictet 10-year yields were down just 4 the United States, released overnight, under- South Africa’s rand edged up after three days Yields had risen the previous (MFF), currently under negotia- Wealth Management. bps at 0.83%. German 10-year scored the toll of curbing business activity over of losses. day amid disappointment with tion. Investors had noted the pros- yields were steady around 0.45%. extended periods, with the readings in April only Stocks in the country added about 0.5%. Still, the Eurogroup’s response pack- They then extended their de- pect of intervention on Wednes- Some analysts also attributed set to be worse. the country was set for a deep recession in 2020, age and changes to its funding cline, with two-year yields fall- day, when Italian yields rose back the mood about-turn to Ital- The MSCI’s developing world stocks index fell with the coronavirus serving to further unsettle programme, which increased the ing as much as 20 basis points to towards levels seen around the ian media reports that the ruling about 0.3%. Currencies dipped 0.2%. an already shaky economy. prospect of Rome adding to its 0.86%, having risen on Wednes- time the ECB offered its PEPP coalition may be more amenable Some optimism persisted over the coronavi- The Polish zloty fell against the dollar, while already huge debt. day as high as 1.15%. emergency stimulus programme. to using the ESM bailout facility, rus slowing in its US and European epicentres, stocks in the country traded sideways. Eurozone finance ministers Ten-year yields fell more than Two other market sources which parties had been bickering last week agreed a half-a-tril- 15 bps to a session low of 1.735% also noted talk of intervention in over. Global oil consumption cut by up to a third on lockdown

By John Kemp tion will be lost permanently in the second combination of fiscal and monetary poli- and gasoline (-48%) but middle distillates are likely to be occurring across the other if non-OECD economies see consump- London half of the year and into 2021 as a result cies to make up the deficit in demand and such as diesel have also been hit (-31%) advanced economies, though data for tion decline by 20% or 10mn bpd, a of the recession. Some businesses will jumpstart the economy. and even propane and propylene are off other economies in North America, Eu- conservative estimate, then total OECD re-open and return to near-normal rapidly But even Keynesian stimulus will take (-29%). US refineries have so far reduced rope and Asia will only become available and non-OECD losses could be as high as What happens next in the oil market de- once the lockdown ends, but others will time to fill the demand gap and return crude processing by around 3.2mn bpd or much later. 26mn bpd. pends on how quickly and completely the operate at severely reduced capacity, and petroleum consumption to something like 20%, causing crude stocks to surge, but Britain’s Office for Budget Responsibil- The implication is that global oil stor- global economy emerges from lockdown, some will not reopen at all. near normal. even that has not been enough to prevent ity, the government’s independent fiscal age has been filling at around 100mn and whether the recessionary hit lingers Millions of employees have been fur- Demand falls a build up of unused fuels. monitor, has estimated the country’s barrels every four days, which is clearly through the rest of this year and into 2021. loughed and could return to their old jobs Total stocks of crude oil and petro- output could fall by 35% in the second unsustainable for any extended period. The Opec+ deal, finalised on Sunday, quickly, but millions more have become US petroleum consumption has fallen leum products, excluding the strategic quarter of 2020. Logistics fill envisages production cuts of 9.7mn bpd unemployed and may not find new work by around one-third over the last four petroleum reserve, have surged by almost The estimated reduction in Britain’s in May and June, with the cuts tapering for some time. weeks as the coronavirus epidemic and 84mn barrels over the last four weeks, output is broadly similar to the reported Emerging storage and logistics through the rest of 2020, 2021 and the In the face of the largest economic lockdowns have brought much of the according to the US Energy Information reduction in US petroleum consumption constraints have sent prices for physical first quarter of 2022. shock since before World War Two, economy to a halt. Administration (EIA). The last three weeks and suggests oil use across the entire crude and products such as gasoline and It assumes further reductions will come businesses and households are moving The volume of petroleum products have seen consecutive increases of 21mn OECD could be down by a third this diesel tumbling to massive discounts about as a result of price-driven cuts to to reduce non-essential spending and supplied to the domestic market was just barrels, 33mn barrels and 27mn barrels, quarter. compared with prices for future deliveries. the output of the United States and other conserve cash. 13.8mn barrels per day (bpd) in the week three of the five largest weekly rises since OECD consumption is around 48mn In this context, production limits major oil producers not formally associ- But the second and third-round effects ending April 10, down from 21.5mn bpd in the data began in 1990. bpd so a one-third reduction translates announced on Sunday by the enlarged ated with the deal. Even so, inventories of of that cash conservation imply a very the week ending March 13. The 1.34bn barrels of crude and petrole- into the loss of 16mn bpd from the Opec+ group of oil exporters, led by Saudi crude and refined products will start at large hit to aggregate demand and oil The sudden slump in petroleum um products in storage, excluding stocks advanced economies alone. Non-OECD Arabia and Russia, should slow the ac- a very high level, which will take months consumption which will persist through consumption, as factories, retailers and held in the strategic petroleum reserve, economies consume a further 52mn bpd. cumulation of inventories and push back to whittle away, assuming consumption the rest of the year and into 2021. offices are shuttered and transporta- are a record for the time of year. Consumption losses there are harder the storage wall. returns to near-normal quickly. Following the standard prescription tion systems close, has no parallel in the Global glut to measure, though probably smaller in The bigger question is how much eco- of economist John Maynard Keynes, history of the oil industry. Consumption percentage terms, since many simply n John Kemp is a Reuters market analyst. nomic output and petroleum consump- governments and central banks can use a has fallen most severely for jet fuel (-73%) Similar reductions in oil consumption cannot afford to lockdown completely. But The views expressed are his own. Gulf Times 6 Friday, April 17, 2020 BUSINESS

KUWAIT KUWAIT OMAN

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

Al-Eid Food Ksc 81.90 -0.12 4,480 Oman Packaging 0.30 0.00 - Al-Madar Finance & Invt Co 82.60 -0.60 20,022 Qurain Petrochemical Industr 214.00 4.39 1,227,433 Oman Oil Marketing Company 0.80 -0.50 9,275 Gulf Petroleum Investment 13.10 -2.24 1,087,625 Advanced Technology Co 700.00 0.00 - Oman National Engineering An 0.11 0.00 - Mabanee Co Sakc 570.00 -2.23 1,246,994 Ekttitab Holding Co Sak 11.70 -4.88 34,840 Oman Investment & Finance 0.09 -2.30 70,163 Inovest Co Bsc 56.00 0.00 - Real Estate Trade Centers Co 28.80 0.00 - Oman Intl Marketing 0.52 0.00 - Al-Deera Holding Co 20.00 0.00 - Acico Industries Co Kscc 100.70 -5.00 160,000 Oman Flour Mills 0.51 0.00 - Mena Real Estate Co 22.50 -4.26 329,739 Kipco Asset Management Co 64.00 0.00 100 Oman Fisheries Co 0.09 0.00 - Amar Finance & Leasing Co 44.00 0.00 - National Petroleum Services 1,100.00 0.00 - Oman Europe Foods Industries 1.00 0.00 - United Projects For Aviation 452.00 0.00 - Alimtiaz Investment Group 76.10 -1.17 1,352,365 Oman Education & Training In 0.22 0.00 - National Consumer Holding Co 44.90 0.00 - Ras Al Khaimah White Cement 65.00 0.00 - Oman Chromite 3.64 0.00 - QATAR Amwal International Investme 40.00 0.00 - Kuwait Reinsurance Co Ksc 185.00 0.00 - Oman Chlorine 0.32 0.00 - Equipment Holding Co K.S.C.C 13.50 0.00 - Kuwait & Gulf Link Transport 49.10 1.45 88,040 Oman Ceramic Company 0.42 0.00 - Company Name Lt Price % Chg Volume Arkan Al Kuwait Real Estate 80.80 0.00 - Humansoft Holding Co Ksc 2,505.00 -2.72 104,093 Oman Cement Co 0.23 -0.43 50,000 Gfh Financial Group Bsc 45.30 0.00 70,005 Automated Systems Co Kscc 68.40 0.00 - Oman Cables Industry 0.52 0.00 - Energy House Holding Co Kscp 14.80 -4.52 25,000 44.00 0.00 - 0.05 0.00 40,000 Zad Holding Co 14.45 0.07 22,352 Metal & Recycling Co Oman & Emirates Inv(Om)50% Kuwait Co For Process Plant 260.00 0.00 92,637 59.60 0.00 - 0.17 0.00 - Widam Food Co 5.19 -0.29 293,986 Gulf Franchising Holding Co Natl Aluminium Products Al Maidan Dental Clinic Co K 1,220.00 0.00 - 49.90 -0.20 196,981 5.00 0.00 - Vodafone Qatar 0.91 -3.70 2,157,814 Al-Enma’a Real Estate Co National Real Estate Develop National Shooting Company 8.70 0.00 - 610.00 0.83 17,224 0.09 0.00 - United Development Co 0.99 -4.17 3,089,402 National Mobile Telecommuni National Mineral Water Al-Ahleia Insurance Co Sakp 385.00 0.00 - 0.00 0.00 - 0.30 -6.01 32,600 Salam International Investme 0.26 -6.50 6,026,451 Sanad Holding Co Kscc National Life & General Insu Wethaq Takaful Insurance Co 20.00 0.00 - 37.70 0.00 - 0.19 0.00 - Qatar & Oman Investment Co 0.43 -5.29 571,276 Unicap Investment And Financ National Gas Co Salbookh Trading Co Kscp 28.20 2.55 15,340 18.40 -3.16 703,300 0.14 0.00 - Qatar Navigation 4.90 0.00 845,572 Al Salam Group Holding Co National Finance Co Aqar Real Estate Investments 69.00 0.00 - 57.00 0.00 - 0.60 0.00 - Qatar National Cement Co 3.34 -3.38 315,912 Al Aman Investment Company National Detergent Co Saog Hayat Communications 50.00 0.00 - 58.00 3.57 1,000 3.92 0.00 - Qatar National Bank 17.70 -3.28 4,786,049 Mashaer Holding Co Ksc National Biscuit Industries Soor Fuel Marketing Co Ksc 100.00 0.00 39,130 27.80 0.00 - 0.16 -2.42 973,500 Qatar Islamic Insurance Grou 6.05 0.82 577,455 Manazel Holding National Bank Of Oman Saog Tamkeen Holding Co 5.20 0.00 - 36.00 0.00 - 0.08 0.00 - Qatar Industrial Manufactur 2.65 -3.64 49,544 Tijara And Real Estate Inves Muscat Thread Mills Co Alargan International Real 72.20 9.89 100 542.00 0.37 76,449 0.49 0.00 - Qatar International Islamic 8.06 -1.83 1,603,542 Jazeera Airways Co Ksc Muscat Insurance Co Saog Burgan Co For Well Drilling 75.90 0.00 - 90.30 0.33 106,000 0.16 0.00 - Qatari Investors Group 1.29 -1.90 271,138 Commercial Real Estate Co Muscat Gases Company Saog Kuwait Resorts Co Kscc 46.00 -4.17 5 72.10 0.00 - 0.05 0.00 25,000 Qatar Islamic Bank 15.05 -3.59 1,144,426 National International Co Muscat Finance Oula Fuel Marketing Co 100.00 0.00 - 13.60 -2.86 130,154 0.11 0.00 - Qatar Gas Transport(Nakilat) 2.15 -0.28 2,029,187 Taameer Real Estate Invest C Muscat City Desalination Co Palms Agro Production Co 56.60 0.00 - 37.90 0.00 - 0.18 0.00 - Qatar General Insurance & Re 2.02 0.10 55,056 Gulf Cement Co Majan Glass Company Mubarrad Holding Co Ksc 55.90 0.72 10,330 384.00 -1.29 57,700 0.16 0.00 - Qatar German Co For Medical 0.60 -5.68 3,631,578 Heavy Engineering And Ship B Majan College Shuaiba Industrial Co 128.00 0.00 - 62.10 -2.05 22,987 0.10 -0.98 15,000 Qatar Fuel Qsc 16.69 -3.75 1,211,899 National Real Estate Co Hsbc Bank Oman Aan Digital Services Co 9.50 -1.04 1,648,716 14.50 0.00 - 1.25 0.00 - Qatar First Bank 0.90 0.00 1,061,151 Al Safat Energy Holding Comp Hotels Management Co Interna First Takaful Insurance Co 42.20 -4.95 500 723.00 0.00 - 0.12 0.00 - Qatar Electricity & Water Co 14.62 -1.22 1,929,857 Kuwait National Cinema Co Gulf Stone Kuwaiti Syrian Holding Co 28.50 -4.68 10,000 11.40 0.88 169,346 0.31 0.00 - Qatar Exchange Index Etf 9.20 0.00 - Danah Alsafat Foodstuff Co Gulf Mushroom Company National Cleaning Company 57.80 3.40 126,960 400.00 0.00 - 0.06 0.00 1,000 Qatar Cinema & Film Distrib 2.53 9.59 305 Independent Petroleum Group Gulf Investments Services United Real Estate Company 57.50 0.00 - 74.90 0.94 148,000 0.11 0.00 - Al Rayan Qatar Etf 1.94 -3.33 70,293 Kuwait Real Estate Co Ksc Gulf Invest. Serv. Pref-Shar Agility 550.00 -0.54 2,632,369 365.00 -0.54 25,622 0.10 10.00 75,200 Qatar Insurance Co 2.20 -5.70 2,201,738 Salhia Real Estate Co Ksc Gulf International Chemicals Kuwait & Middle East Fin Inv 83.70 -0.24 332,301 469.00 2.18 555,413 3.88 0.00 - Qatar Aluminum Manufacturing 0.60 -6.10 9,154,744 Gulf Cable & Electrical Ind Gulf Hotels (Oman) Co Ltd Fujairah Cement Industries 40.40 0.00 1,478 637.00 -0.78 13,771,221 0.06 0.00 - Ooredoo Qpsc 6.00 -3.54 1,771,049 Kuwait Finance House Global Fin Investment Livestock Transport & Tradng 173.00 0.00 - 53.00 0.00 - 0.06 0.00 - National Leasing 0.61 -1.45 693,711 Gulf North Africa Holding Co Galfar Engineering&Contract International Resorts Co 0.00 0.00 - 66.20 0.00 - 0.39 0.00 - Mazaya Qatar Real Estate Dev 0.54 -0.93 2,216,980 Hilal Cement Co Galfar Engineering -Prefer National Industries Grp Hold 157.00 0.64 1,617,236 88.00 -3.83 60,000 0.18 0.00 - Mesaieed Petrochemical Holdi 1.84 -6.63 10,139,384 Osoul Investment Kscc Financial Services Co. Warba Insurance Co 72.80 -0.14 17,074 630.00 0.00 - 0.10 0.00 - Al Meera Consumer Goods Co 16.00 -1.23 217,088 Gulf Insurance Group Ksc Financial Corp/The First Dubai Real Estate Deve 29.30 -0.68 100,001 66.70 0.00 - 0.49 0.00 - Medicare Group 6.07 -0.91 470,936 Umm Al Qaiwain General Inves Dhofar Tourism Al Arabi Group Holding Co 198.00 0.00 - 35.00 -1.13 297,100 0.18 0.00 - Mannai Corporation Qsc 3.10 -0.64 338,499 Aayan Leasing & Investment Dhofar Poultry Kuwait Hotels Sak 100.00 0.00 - 36.90 0.00 - 0.30 0.00 - Masraf Al Rayan 3.73 -2.10 4,596,924 Alrai Media Group Co Ksc Dhofar Intl Development Mobile Telecommunications Co 481.00 0.21 3,689,489 96.50 0.52 126,800 0.15 0.00 - Al Khalij Commercial Bank 1.22 -0.16 265,144 National Investments Co Dhofar Insurance Effect Real Estate Co 20.50 0.00 - 199.00 0.00 18,000 0.19 0.00 - Industries Qatar 6.86 -1.44 2,480,366 Commercial Facilities Co Dhofar Generating Co Saoc Tamdeen Real Estate Co Ksc 300.00 0.00 - 707.00 0.00 - 1.28 0.00 - Islamic Holding Group 1.36 -4.83 262,292 Yiaco Medical Co. K.S.C.C Dhofar Fisheries & Food Indu Al Mudon Intl Real Estate Co 15.90 0.00 - 350.00 0.00 - 0.12 0.00 - Investment Holding Group 0.39 -2.72 1,691,480 Dulaqan Real Estate Co Dhofar Cattlefeed Kuwait Cement Co Ksc 149.00 -0.67 28,280 90.00 0.00 - 0.26 0.00 - Gulf Warehousing Company 4.69 2.89 841,411 Real Estate Asset Management Dhofar Beverages Co Sharjah Cement & Indus Devel 42.20 0.00 - 0.03 0.00 1,000 Gulf International Services 1.24 6.71 11,352,078 Construction Materials Ind Kuwait Portland Cement Co 865.00 1.76 301 0.26 0.00 - Ezdan Holding Group 0.53 -0.56 14,861,997 Computer Stationery Inds Educational Holding Group 255.00 0.00 - 0.32 -5.33 1,436,174 Doha Insurance Co 1.06 -0.75 405,588 Bankmuscat Saog Bahrain Kuwait Insurance 200.00 0.00 - 0.09 -3.37 41,049 Doha Bank Qpsc 1.91 -2.84 2,146,671 Bank Nizwa Asiya Capital Investments Co 32.90 0.00 - OMAN 0.11 6.06 5,555 Dlala Holding 0.48 -7.57 297,069 Bank Dhofar Saog Kuwait Investment Co 99.00 0.51 97,000 0.10 0.00 - Commercial Bank Psqc 3.91 -2.74 2,861,790 Company Name Lt Price % Chg Volume Arabia Falcon Insurance Co Burgan Bank 213.00 0.95 2,341,398 0.08 0.00 - Barwa Real Estate Co 2.82 -9.99 16,589,090 Aloula Co Kuwait Projects Co Holdings 158.00 -0.63 47,205 Al-Omaniya Financial Service 0.08 -1.22 32,200 Al Khaleej Takaful Group 1.60 -3.03 262,249 Voltamp Energy Saog 0.15 3.42 189,439 Al Madina For Finance And In 9.50 -2.06 147,140 Al-Hassan Engineering Co 0.02 -14.29 50,000 Al Ahli Bank 0.53 -3.27 4,269,467 Vision Insurance Saoc 0.08 0.00 - Kuwait Insurance Co 335.00 0.00 - Al-Fajar Al-Alamia Co 0.75 0.00 - United Power/Energy Co- Pref 1.00 0.00 - Al Masaken Intl Real Estate 26.70 0.00 - Al-Anwar Ceramic Tiles Co 0.13 0.00 - United Power Co Saog 1.27 -9.64 1,355 Intl Financial Advisors 34.60 -1.70 383,200 Al Suwadi Power 0.06 -1.69 185,300 United Finance Co 0.08 -9.30 22,380 KUWAIT First Investment Co Kscc 27.10 -3.21 2,300,735 Al Sharqiya Invest Holding 0.06 -8.70 42,000 Ubar Hotels & Resorts 0.13 0.00 - Al Mal Investment Company 8.30 0.00 13,966 Al Maha Petroleum Products M 0.74 0.00 - Takaful Oman 0.12 0.00 - Company Name Lt Price % Chg Volume Bayan Investment Co Kscc 33.90 2.73 100 Al Maha Ceramics Co Saoc 0.19 0.00 1,000 Taageer Finance 0.10 0.00 - Egypt Kuwait Holding Co Sae 334.00 0.00 - Al Madina Takaful Co Saoc 0.07 0.00 - Sultan Center Food Products 50.00 0.00 87,000 Sweets Of Oman 0.55 0.00 - Coast Investment Development 28.80 -0.69 10,270 Al Madina Investment Co 0.02 0.00 8,490 Kuwait Foundry Co Sak 222.00 7.25 53,090 Sohar Power Co 0.05 0.00 1,000 Privatization Holding Compan 40.80 0.00 5,000 Al Kamil Power Co 0.35 -1.13 511,294 Kuwait Financial Centre Sak 90.50 -0.22 146,770 Sohar International Bank 0.08 -1.18 37,015 Injazzat Real State Company 67.10 4.52 45,410 Al Jazerah Services -Pfd 0.55 0.00 - Ajial Real Estate Entmt 136.00 0.00 - Smn Power Holding Saog 0.06 0.00 - Kuwait Cable Vision Sak 14.00 0.00 - Al Jazeera Steel Products Co 0.10 1.02 325,550 Kuwait Finance & Investment 44.00 -3.30 250 Shell Oman Marketing - Pref 1.05 0.00 - Sanam Real Estate Co Kscc 32.30 0.00 - Al Jazeera Services 0.15 -1.96 30,000 National Industries Co Ksc 150.00 -1.96 6,750 Shell Oman Marketing 1.10 0.00 1,755 Ithmaar Holding Bsc 22.30 0.00 - Al Izz Islamic Bank 0.05 0.00 20,000 Kuwait Real Estate Holding C 31.40 0.00 - Sharqiyah Desalination Co Sa 0.20 0.00 - Aviation Lease And Finance C 157.00 -1.26 449,049 Al Buraimi Hotel 0.88 0.00 - Securities House/The 31.90 -1.54 5,001 Sembcorp Salalah Power & Wat 0.13 0.00 200 Arzan Financial Group For Fi 31.30 0.00 763,851 Al Batinah Power 0.06 -1.72 166,000 Boubyan Petrochemicals Co 463.00 0.65 518,346 Salalah Port Services 0.60 0.00 - Ajwan Gulf Real Estate Co 9.90 0.00 5,001 Al Batinah Hotels 1.13 0.00 - Al Ahli Bank Of Kuwait 171.00 -1.16 590,696 Salalah Mills Co 0.50 0.00 - Kuwait Business Town Real Es 28.30 1.80 1,425,618 Al Batinah Dev & Inv 0.07 0.00 - Ahli United Bank (Almutahed) 275.00 0.73 493,284 Salalah Beach Resort Saog 1.38 0.00 - Future Kid Entertainment And 73.00 -13.10 20,009 Al Anwar Holdings Saog 0.07 -4.05 229,627 National Bank Of Kuwait 730.00 -0.95 5,136,548 Sahara Hospitality 3.12 0.00 - Specialities Group Holding C 60.80 1.50 45 Al Ahlia Insurance Co Saoc 0.37 0.00 - Commercial Bank Of Kuwait 500.00 0.00 - Renaissance Services Saog 0.42 0.00 - Abyaar Real Eastate Developm 5.20 0.00 - Ahli Bank 0.13 0.00 - Kuwait International Bank 191.00 -0.52 31,088,503 Raysut Cement Co 0.37 -5.10 54,504 Dar Al Thuraya Real Estate C 60.00 0.00 - Acwa Power Barka Saog 0.60 0.00 - Gulf Bank 203.00 0.50 1,666,701 Phoenix Power Co Saoc 0.06 -3.51 24,000 Kgl Logistics Company Kscc 26.30 0.38 1,000 Abrasives Manufacturing Co S 0.05 0.00 - Al-Massaleh Real Estate Co 33.40 0.00 - Packaging Co Ltd 2.21 0.00 - Combined Group Contracting 197.00 -0.51 153,000 A’saffa Foods Saog 0.60 0.00 - Al Arabiya Real Estate Co 22.70 2.71 108,500 Ooredoo 0.42 -8.70 399,057 Jiyad Holding Co Ksc 30.80 0.33 1 0Man Oil Marketing Co-Pref 0.25 0.00 - Kuwait Remal Real Estate Co 15.40 -1.28 83,510 Ominvest 0.32 0.00 - Warba Capital Holding Co 55.50 0.00 - #N/A Invalid Security 0.00 0.00 - Alkout Industrial Projects C 850.00 0.00 - Oman United Insurance Co 0.31 0.66 12,000 Gulf Investment House Ksc 44.30 -9.41 89,079 #N/A Invalid Security 0.00 0.00 - Oman Telecommunications Co 0.65 -1.22 203,643 A’ayan Real Estate Co Sak 56.90 -4.85 82,830 Boubyan Bank K.S.C 472.00 -0.63 453,747 Oman Refreshment Co 1.00 0.00 - Investors Holding Group Co.K 9.40 0.00 3,334,601 Ahli United Bank B.S.C 197.00 0.00 13,740,006 Oman Qatar Insurance Co 0.08 0.00 - Al-Mazaya Holding Co 50.00 -0.99 21,100 Osos Holding Group Co 100.00 1.01 32,535 LATEST MARKET CLOSING FIGURES

Real oil market is sinking despite Opec+ deal

Bloomberg London/Geneva

he physical oil market, where millions of barrels of real cargoes are traded each Tday, needed Opec+’s historic cuts to global crude production months ago. On Sunday, producer nations pledged to limit output by an unprecedented 10% of global supply. While there’s scepticism the cuts will prove deep enough – demand has plunged by far more – a more pressing issue is one of timing: the real market, the one that underpins headline prices, has a huge glut and the output curbs won’t even begin un- til May. Before then, it’s pump at will so the curbs won’t really affect physical oil supply for months. Signs of weakness abound. Key North Sea crude swaps are trading more than $6 a bar- rel below the headline Brent futures price of about $28 – the biggest discount in almost a decade. The critically important Dated Brent benchmark that shapes the price of millions of barrels of crude was assessed by S&P Glo- bal Platts at $18.08 on Wednesday. At the same time, a gauge of US supply is at its weakest since 2009 as the market tries to force supplies into storage. “In the short-term, the market remains very overwhelmed with misplaced oil,” said Torbjorn Tornqvist, co-founder and chief ex- ecutive officer of Gunvor Group Ltd, a top oil trader. “Prompt time spreads will continue to be very weak, along with deep discounts for physical oil.” A gas flare is seen at dusk in this aerial photograph taken above a field near Pecos, Texas, US (file). The most immediate WTI oil future – May – slumped to a discount of $7.29 a barrel relative to The most immediate WTI oil future – May June on Tuesday, the deepest since 2009 and a sure sign of immediate oversupply. – slumped to a discount of $7.29 a barrel rela- tive to June on Tuesday, the deepest since since early April, compared with a premium of that produce a lot of naphtha and jet fuel – parts barrels are moving, the run cuts are happen- about 20mn barrels of April-loading crude re- 2009 and a sure sign of immediate oversup- more than $4 in late January. of the market hit by the global shutdown. Cas- ing. This is the peak of demand destruction. main unsold, according to traders. The Opec+ ply. Landlocked grades such as Bakken are still Even so, there are pockets of relief. The pian CPC crude is trading at a discount of more It is going to be too late to stop a lot of barrels cuts will do little to alleviate that glut in the worth less than $10 a barrel as refiners, stuck cash market in the US Gulf has seen prices than $9 a barrel to the Dated Brent benchmark, from going into storage. What this does is it short term, said traders active in that market. with fuel they can’t sell, slash runs. recover somewhat since Saudi Arabia began based on swaps trades for that market. starts to address the over-the-horizon issues.” It highlights the glut of supply in the so- In Asia this week, majors including Phillips raising official selling prices for its crude in There’s no sign that any producer will close The hit to consumption has crippled re- called Atlantic Basin region, comprising 66 sold up to five cargoes of the medium-sour May for buyers in the Americas. Differentials the taps before May, meaning millions of bar- fineries globally. Total SA – one of the largest Northwest Europe, the Mediterranean and Al-Shaheen grade for June loading at the low- for high-sulphur crudes in the US were first rels of unneeded crude entering the market oil refiners in Europe – said last week it might West Africa. est since at least early 2011, according to data to respond, with grades like Mars Blend at each day. not be able to keep its plants open for another “The Atlantic Basin will still be drowning,” compiled by Bloomberg. Oman crude on the premiums to oil futures for the first time in “Whatever is happening in April is already month, while smaller installations from Italy said Kit Haines, analyst at Energy Aspects. Dubai Mercantile Exchange has been at a dis- two weeks. happening,” said Saad Rahim, the chief econo- to the US have already closed. “Everything will depend on how quickly de- count of more than $6 a barrel to Dubai swaps That weakness is particularly acute for crudes mist at trading giant Trafigura Group. “The It’s a similar picture in West Africa, where mand recovers.” Gulf Times Friday, April 17, 2020 7 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 23,430.83 -73.52 Apple Inc 286.32 0.66 3,462,675 S&P 500 Index 2,795.21 +11.85 American Express Co 81.67 -2.53 484,565 Nasdaq Composite Index 8,521.23 +128.06 Boeing Co/The 137.82 -5.59 2,466,509 S&P/Tsx Composite Index 13,991.09 +32.51 Caterpillar Inc 110.75 -0.70 277,812 Mexico Bolsa Index 33,904.89 +49.65 Cisco Systems Inc 41.35 -0.41 2,351,276 Brazil Bovespa Stock Idx 78,694.20 -137.28 Chevron Corp 79.85 -3.20 631,281 Ftse 100 Index 5,628.43 +30.78 Walt Disney Co/The 102.00 -1.33 1,397,845 Cac 40 Index 4,350.16 -3.56 Dow Inc 31.36 -2.70 636,031 Dax Index 10,301.54 +21.78 Goldman Sachs Group Inc 174.79 -2.09 348,286 Ibex 35 Tr 6,763.40 -76.10 Home Depot Inc 200.49 1.01 330,937 Nikkei 225 19,290.20 -259.89 Intl Business Machines Corp 115.70 -2.52 373,429 Japan Topix 1,422.24 -11.83 Intel Corp 59.95 1.83 2,083,473 Hang Seng Index 24,006.45 -138.89 Johnson & Johnson 146.96 -0.47 722,781 All Ordinaries Indx 5,467.56 -55.77 Jpmorgan Chase & Co 88.08 -2.98 1,678,727 Nzx All Index 1,729.19 +10.74 Coca-Cola Co/The 47.06 -1.16 1,188,983 Bse Sensex 30 Index 30,602.61 +222.80 Mcdonald’s Corp 177.15 -0.39 462,011 Nse S&P Cnx Nifty Index 8,992.80 +67.50 3M Co 144.50 -0.45 257,929 Straits Times Index 2,612.25 +6.69 Merck & Co. Inc. 82.94 1.06 480,293 Karachi All Share Index 22,398.18 +209.91 Microsoft Corp 176.02 2.41 5,837,761 Jakarta Composite Index 4,480.61 -145.30 Nike Inc -Cl B 85.87 0.98 491,258 Pfizer Inc 35.78 -0.53 1,431,951 Procter & Gamble Co/The 121.23 0.01 590,944 Travelers Cos Inc/The 99.97 -2.15 91,285 TOKYO Unitedhealth Group Inc 292.40 3.81 690,812 United Technologies Corp 0.00 0.00 - Company Name Lt Price % Chg Volume Visa Inc-Class A Shares 162.06 -2.35 1,375,283 Nidec Corp 5,762.00 -1.97 1,846,700 Verizon Communications Inc 57.15 0.39 986,534 Isuzu Motors Ltd 730.20 -1.34 2,149,600 Walgreens Boots Alliance Inc 43.60 0.37 661,315 Unicharm Corp 4,149.00 0.48 1,605,000 Walmart Inc 131.40 2.05 821,247 Nomura Holdings Inc 411.00 -3.25 17,230,200 Exxon Mobil Corp 39.33 -2.84 2,399,093 Daiichi Sankyo Co Ltd 7,475.00 -1.55 1,278,800 The German share price index DAX graph is pictured at the Frankfurt Stock Exchange. The DAX 30 added 0.2% to 10,301.54 Subaru Corp 2,018.00 -2.70 3,520,200 points yesterday after German Chancellor Angela Merkel late Wednesday unveiled the first steps towards undoing Sumitomo Realty & Developmen 2,625.50 -3.26 2,059,700 coronavirus restrictions that have plunged the eurozone’s biggest economy into recession. FTSE 100 Ntt Docomo Inc 3,307.00 1.41 5,038,500 Sumitomo Metal Mining Co Ltd 2,391.00 -4.13 1,650,900 Company Name Lt Price % Chg Volume Orix Corp 1,218.50 -1.61 9,211,400 Asahi Group Holdings Ltd 3,498.00 -3.90 2,499,600 Anglo American Plc 1,343.60 -0.81 4,661,879 Keyence Corp 36,830.00 -1.21 476,400 Associated British Foods Plc 1,936.50 2.79 808,721 Mizuho Financial Group Inc 119.90 -3.31 125,803,600 Admiral Group Plc 2,136.00 -0.28 608,829 Sumitomo Mitsui Trust Holdin 3,022.00 -1.37 1,151,700 Ashtead Group Plc 1,722.00 -3.69 2,276,098 Japan Tobacco Inc 1,983.00 -0.33 3,647,000 Europe stocks buoyed by Antofagasta Plc 769.40 3.83 1,824,167 Sumitomo Electric Industries 1,022.00 -2.25 2,208,500 Auto Trader Group Plc 425.40 5.58 5,481,868 Daiwa Securities Group Inc 405.20 -0.76 6,342,300 Aviva Plc 241.10 -0.82 16,224,887 Softbank Group Corp 4,430.00 2.24 47,464,200 Astrazeneca Plc 7,818.00 2.67 2,325,434 Panasonic Corp 771.00 -3.96 12,458,100 Bae Systems Plc 526.20 1.47 7,151,806 Fujitsu Ltd 10,560.00 -2.27 934,900 Barclays Plc 87.08 0.09 84,113,765 17,625.00 -2.14 515,300 plans to lift lockdowns Central Japan Railway Co British American Tobacco Plc 2,958.00 1.23 4,028,320 Nitori Holdings Co Ltd 16,125.00 0.40 275,800 Barratt Developments Plc 460.80 6.35 7,043,325 Ajinomoto Co Inc 1,930.50 1.21 2,106,100 Bhp Group Plc 1,265.00 1.35 5,965,807 ors will be felt for a long while yet,” said of the European Union. Earlier, the Daikin Industries Ltd 13,425.00 -2.96 895,500 AFP Berkeley Group Holdings/The 3,814.00 3.64 574,564 Mitsui Fudosan Co Ltd 1,823.50 -0.76 6,218,300 London BRC chief Helen Dickinson. head of the International Monetary British Land Co Plc 375.00 -1.08 7,083,961 Ono Pharmaceutical Co Ltd 2,507.50 -1.65 1,282,300 Milan stocks rose 0.3% to 16,768.14 Fund said Britain should ask for an Bunzl Plc 1,597.50 -2.38 1,380,349 Toray Industries Inc 471.20 -1.17 4,763,100 points after the Lombardy region, the extension to its post-Brexit transi- Bp Plc 291.95 -2.59 54,005,313 Bridgestone Corp 3,215.00 -2.37 1,917,100 Burberry Group Plc 1,400.00 -0.04 2,105,927 uropean stock markets mostly nation’s industrial heartland, signalled tion period to ease uncertainty at a Sony Corp 6,700.00 -0.99 5,601,000 Bt Group Plc 121.45 2.36 23,198,051 climbed yesterday as investors it wants to get back to work from May time when the world economy is be- Astellas Pharma Inc 1,724.50 -3.25 6,280,100 Coca-Cola Hbc Ag-Di 1,928.00 1.45 728,267 focused on plans to ease some 4. ing hammered by the coronavirus Hoya Corp 9,936.00 -1.92 972,300 E Carnival Plc 860.80 0.73 2,056,287 Nippon Steel Corp 808.00 -3.08 5,093,300 coronavirus lockdown restrictions, On the downside, Asian markets pandemic. Centrica Plc 32.06 1.71 41,913,920 Suzuki Motor Corp 2,931.50 -3.54 2,344,900 while the dollar rose as well. fell following overnight woes on Wall Speaking before health minister Compass Group Plc 1,285.00 3.34 4,125,984 Nippon Telegraph & Telephone 2,623.00 1.43 5,902,300 Meanwhile US investors largely Street as more negative US economic Matt Hancock said the virus would Croda International Plc 4,520.00 1.64 460,016 Jxtg Holdings Inc 368.80 -0.62 11,780,700 data fuelled worries about the full im- Crh Plc 2,150.00 2.82 1,130,019 brushed off another 5.2mn first-time “run rampant” should measures be Murata Manufacturing Co Ltd 5,671.00 -1.31 2,123,500 Dcc Plc 5,192.00 -1.26 413,901 unemployment claims, which took the pact of the coronavirus pandemic. lifted now, Michael Hewson, chief Kansai Electric Power Co Inc 1,174.50 0.43 1,798,800 Diageo Plc 2,642.00 0.84 3,734,449 number of jobs lost since mid-March There had already been a spate of market analyst at CMC markets said Denso Corp 3,639.00 -2.83 1,607,100 Direct Line Insurance Group 258.00 -0.92 6,531,782 to 22mn, as President Donald Trump grim economic forecasts this week, the lockdown extension was already Sompo Holdings Inc 3,450.00 -1.43 742,600 Evraz Plc 250.60 7.69 4,973,322 Daiwa House Industry Co Ltd 2,678.50 -1.63 1,579,400 was to announce plans for lifting lock- with the IMF warning of the worst glo- priced into the pound. Experian Plc 2,306.00 4.20 2,409,386 Dai-Ichi Life Holdings Inc 1,328.00 -1.04 3,233,300 downs in the world’s top economy. bal downturn in a century, and poor US Sterling is more driven by the dol- Easyjet Plc 588.40 -2.45 5,597,405 Mazda Motor Corp 550.00 -5.17 6,734,000 Oil prices diverged, a day after hit- economic figures on Wednesday - fur lar’s strength and the euro’s potential Ferguson Plc 5,000.00 -1.38 611,046 Komatsu Ltd 1,907.50 -0.93 6,193,700 Fresnillo Plc 729.00 4.77 1,253,202 ting an 18-year low as traders believe ther spooked investors. to weaken than by domestic factors, he West Japan Railway Co 6,817.00 -2.85 843,800 Glencore Plc 131.64 -2.08 32,330,224 that a producers’ deal to slash output The latest numbers from the United said. Kao Corp 8,812.00 -2.09 1,432,100 Glaxosmithkline Plc 1,653.80 5.34 14,261,768 is not large enough to offset a crash in States, the world’s biggest economy, Hewson said he was “fairly bullish” Mitsui & Co Ltd 1,488.00 -1.13 4,990,700 Gvc Holdings Plc 649.00 -1.31 2,903,479 demand caused by coronavirus fall- highlighted the scale of the damage on the pound against the euro, but less Daito Trust Construct Co Ltd 10,425.00 -0.05 263,400 Hikma Pharmaceuticals Plc 2,230.00 -0.54 623,537 Otsuka Holdings Co Ltd 4,164.00 -2.41 1,075,400 out. unleashed by lockdowns and social so versus the dollar. Hargreaves Lansdown Plc 1,472.50 -0.17 2,064,652 Oriental Land Co Ltd 14,290.00 -0.07 835,700 “Investors are shrugging off the pes- distancing measures imposed to stop “(I’m) still looking to buy dips in the Halma Plc 1,981.00 -0.10 968,604 Sekisui House Ltd 1,785.50 -1.84 1,871,500 simism and (are) willing to focus on the spread of the virus. short to medium-term simply on the Hsbc Holdings Plc 405.60 -0.61 31,363,972 Secom Co Ltd 9,147.00 -0.05 576,800 Hiscox Ltd 790.20 8.25 3,469,155 more positive things,” said AvaTrade US retail sales plunged in March basis that it’s probably a better bet than Tokio Marine Holdings Inc 5,051.00 -0.47 1,484,800 Intl Consolidated Airline-Di 219.30 0.69 11,893,907 analyst Naeem Aslam. while industrial production in the the euro at the moment,” he said, refer- Aeon Co Ltd 2,197.50 -1.57 2,925,200 Intercontinental Hotels Grou 3,213.00 -1.44 818,797 Frankfurt stocks added 0.2% to same month suffered its steepest drop ring to the eurozone’s problems in co- Asahi Kasei Corp 706.00 -0.97 5,847,700 3I Group Plc 723.40 -0.63 2,835,285 since 1946, data showed. Kirin Holdings Co Ltd 2,071.00 -2.88 2,049,100 10,301.54 after German Chancellor ordinating their response to the crisis. Imperial Brands Plc 1,577.00 -0.69 1,764,012 Marubeni Corp 497.10 -1.07 7,742,400 Angela Merkel late Wednesday un- Other reports pointed to weak “In terms of where the pound could Informa Plc 437.40 4.94 7,054,460 Mitsubishi Ufj Financial Gro 408.30 -2.09 66,656,100 veiled the first steps towards undo- homebuilder sentiment and manufac- go in the short to medium term, it Intertek Group Plc 4,719.00 -0.86 430,403 Mitsubishi Chemical Holdings 602.80 -1.63 6,692,900 turing conditions, while a US Federal Itv Plc 66.42 -0.51 19,411,133 ing coronavirus restrictions that have could probably drift back to around Fanuc Corp 14,365.00 -2.68 1,269,200 Johnson Matthey Plc 1,891.00 1.64 819,789 plunged the eurozone’s biggest econo- Reserve report said economic activity $1.225 over the course of the next few Fast Retailing Co Ltd 47,880.00 -1.16 866,200 Kingfisher Plc 136.30 0.74 9,979,265 my into recession. “contracted sharply”. sessions but ultimately I don’t expect Ms&Ad Insurance Group Holdin 3,002.00 0.10 1,165,900 Land Securities Group Plc 606.00 -2.42 5,209,468 “Markets in Europe appear to be sta- The World Health Organisation has it to weaken profoundly and if it does Kubota Corp 1,213.00 -2.73 4,155,000 Legal & General Group Plc 194.45 0.75 25,158,063 Seven & I Holdings Co Ltd 3,629.00 -0.98 1,808,000 bilising a touch on some limited relax- warned, however, that lifting restric- it’ll only be as a result of a big rise in the Lloyds Banking Group Plc 29.44 -1.04 236,761,831 Inpex Corp 641.80 0.30 7,373,900 ation of lockdown restrictions across tions too early could have devastating value of the dollar,” Hewson said. London Stock Exchange Group 7,262.00 2.80 604,088 Resona Holdings Inc 320.80 -2.88 9,843,300 the region,” said CMC Markets analyst consequences such as a possible sec- As the coronavirus pandemic con- Micro Focus International 360.30 -6.59 2,523,692 Fujifilm Holdings Corp 5,445.00 1.15 5,065,000 Marks & Spencer Group Plc 93.40 -5.81 16,064,128 Michael Hewon. ond wave of infections. tinues, worldwide cases have reached Yamato Holdings Co Ltd 1,932.00 -2.62 2,189,700 Mondi Plc 1,279.50 0.27 1,671,215 “Germany has become the latest Meanwhile, the British pound slipped 2mn although lockdown measures Chubu Electric Power Co Inc 1,551.50 1.67 2,338,500 Melrose Industries Plc 81.96 -2.87 24,139,915 European country to say it would be slightly against the dollar and euro yes- have slowed growth around the world. Mitsubishi Estate Co Ltd 1,704.00 -2.74 4,359,000 Wm Morrison Supermarkets 181.05 -0.58 15,971,081 loosening some measures on its lock- terday as the UK government said the Britain’s economy could shrink by Mitsubishi Heavy Industries 2,594.50 -2.66 1,397,700 National Grid Plc 898.00 1.15 5,831,747 Sysmex Corp 7,591.00 -6.97 1,193,500 down over the coming weeks, which novel coronavirus outbreak was starting 13% this year due to the shutdown, its Nmc Health Plc 0.00 0.00 - Shiseido Co Ltd 6,558.00 -2.25 2,016,100 is clearly helping European sentiment to peak but it would be premature to lift a deepest recession in three centuries, Next Plc 4,277.00 -4.04 626,963 Shionogi & Co Ltd 5,522.00 -0.99 1,179,700 for now. country-wide lockdown. with public borrowing set to surge to a Ocado Group Plc 1,600.50 3.76 3,557,640 Terumo Corp 3,629.00 -1.76 2,604,300 #N/A Invalid Security 0.00 0.00 - “Reports that the UK has seen a peak The British government is currently post-World War Two high, the coun- Tokyo Gas Co Ltd 2,643.00 -0.97 1,614,100 Prudential Plc 963.20 0.52 6,280,434 in its infection rates is also helping,” he discussing a review of social distanc- try’s budget forecasters said on Tues- Tokyo Electron Ltd 22,570.00 0.96 1,380,000 Persimmon Plc 1,889.00 2.72 1,338,940 added. ing measures with the announcement day. East Japan Railway Co 8,340.00 -0.95 942,100 Pearson Plc 479.10 -5.28 2,744,048 of a further three-week lockdown ex- Itochu Corp 2,114.50 -0.73 2,952,900 London stocks gained 0.6% to “The return to more risk-off trading Reckitt Benckiser Group Plc 6,280.00 -0.63 1,461,578 Ana Holdings Inc 2,425.50 -1.42 1,891,100 5,628.43 points even as a survey pected. has been triggered by two key drivers,” Royal Bank Of Scotland Group 103.75 -0.53 23,779,473 Mitsubishi Electric Corp 1,294.00 -3.83 4,186,200 showed plunging retail sales in March Versus a stronger dollar, the pound said Lee Hardman, currency analyst at Royal Dutch Shell Plc-A Shs 1,298.20 -3.55 9,432,817 Sumitomo Mitsui Financial Gr 2,700.00 -2.65 8,106,600 was down 0.38% at $1.2463 while it Royal Dutch Shell Plc-B Shs 1,272.00 -3.33 9,823,709 as the deadly virus outbreak kept Brit- MUFG. Relx Plc 1,789.00 3.59 3,981,292 ish shoppers away from traditional weakened 0.11% against the euro, to “Firstly, the price of oil has resumed Rio Tinto Plc 3,694.00 0.70 3,974,887 stores. 87.18 pence. its decline after details of the historic Rightmove Plc 478.50 0.23 2,612,197 SENSEX Total retail sales sank by 4.3% in There was little market reaction oil production agreement were finally Rolls-Royce Holdings Plc 309.10 -0.29 9,269,703 March from a year earlier, the British when a spokesman for the UK Prime revealed... Secondly, the latest eco- Company Name Lt Price % Chg Volume Rsa Insurance Group Plc 348.10 -3.04 4,798,466 Retail Consortium said. Minister Boris Johnson said the gov- nomic releases yesterday confirmed Rentokil Initial Plc 409.60 4.36 8,679,051 Adani Ports And Special Econ 267.60 -0.48 3,267,294 “The crisis continues; the retail in- ernment would not ask for an ex- that the Covid-19 shock has sent the Sainsbury (J) Plc 198.50 -1.34 11,038,933 Asian Paints Ltd 1,743.10 1.45 1,821,296 Schroders Plc 2,477.00 2.78 1,182,494 dustry is at the epicentre and the trem- tension to the transition period out US economy into freefall,” he said. Axis Bank Ltd 422.55 1.26 42,344,581 Sage Group Plc/The 615.00 0.46 2,899,359 Bajaj Finance Ltd 2,220.00 1.72 7,246,740 Segro Plc 792.20 -1.98 3,203,900 Bharti Airtel Ltd 500.45 -1.97 17,082,242 Smurfit Kappa Group Plc 2,244.00 3.79 365,867 Bharti Infratel Ltd 171.50 -1.32 6,471,943 HONG KONG HONG KONG Standard Life Aberdeen Plc 208.50 1.71 6,528,612 Bajaj Auto Ltd 2,333.55 -0.07 944,581 Ds Smith Plc 282.30 -1.50 14,293,728 Bajaj Finserv Ltd 4,699.60 2.19 747,354 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Smiths Group Plc 1,133.50 -2.91 1,805,643 Bharat Petroleum Corp Ltd 355.40 0.44 5,915,878 Scottish Mortgage Inv Tr Plc 616.50 2.24 3,050,647 56.90 -0.96 8,591,713 Cipla Ltd 600.45 1.37 12,716,392 Ck Hutchison Holdings Ltd Hong Kong & China Gas 14.36 -0.42 18,979,604 Smith & Nephew Plc 1,512.00 1.37 3,116,408 16.06 -2.78 5,892,618 Coal India Ltd 147.40 0.37 9,736,874 Hang Lung Properties Ltd Bank Of Communications Co-H 4.72 -1.26 17,761,537 Spirax-Sarco Engineering Plc 8,322.00 1.12 297,890 46.60 -0.85 1,867,625 Dr. Reddy’s Laboratories 3,860.65 1.39 1,465,944 Ck Infrastructure Holdings L China Petroleum & Chemical-H 3.88 0.00 109,258,577 Sse Plc 1,205.00 -0.12 2,487,909 65.85 2.33 5,390,583 Eicher Motors Ltd 13,371.35 0.42 250,147 Hengan Intl Group Co Ltd Hong Kong Exchanges & Clear 244.80 -0.89 3,539,366 Standard Chartered Plc 397.00 0.76 11,782,003 14.12 0.00 15,743,402 Gail India Ltd 89.25 3.06 13,298,644 China Shenhua Energy Co-H Bank Of China Ltd-H 2.94 -1.34 259,964,924 St James’s Place Plc 749.20 -5.24 2,069,554 16.44 -0.96 28,643,201 Grasim Industries Ltd 543.75 1.56 3,595,017 Cspc Pharmaceutical Group Lt Hsbc Holdings Plc 39.70 -2.22 37,385,637 Severn Trent Plc 2,346.00 2.04 911,517 135.80 -0.95 1,850,420 Hcl Technologies Ltd 459.75 -3.97 10,484,847 Hang Seng Bank Ltd Power Assets Holdings Ltd 51.25 -1.16 2,750,237 Tesco Plc 235.80 1.38 22,373,842 31.50 -1.10 16,443,344 Housing Development Finance 1,625.75 1.84 7,892,749 China Resources Land Ltd Mtr Corp 42.35 -0.94 2,800,887 Tui Ag-Di 325.90 -0.55 6,805,353 47.15 -0.11 7,331,695 Hdfc Bank Limited 879.75 1.91 26,927,231 Ck Asset Holdings Ltd China Overseas Land & Invest 25.65 0.20 20,960,857 Taylor Wimpey Plc 127.95 2.16 20,250,410 11.18 -0.53 43,522,010 Hero Motocorp Ltd 1,782.65 -2.27 1,453,650 Sino Biopharmaceutical Tencent Holdings Ltd 406.80 2.99 28,850,995 Unilever Plc 4,130.00 -0.15 2,736,547 31.95 0.00 3,228,259 Hindalco Industries Ltd 120.55 4.74 18,972,010 Henderson Land Development China Unicom Hong Kong Ltd 4.92 -2.19 52,986,295 United Utilities Group Plc 900.20 1.35 2,785,706 69.45 -1.21 26,995,000 Hindustan Petroleum Corp 213.85 2.59 4,873,925 Aia Group Ltd Link Reit 69.00 0.29 3,933,860 Vodafone Group Plc 107.16 -0.78 69,497,671 5.09 -1.36 229,746,706 Hindustan Unilever Ltd 2,436.10 -2.07 5,388,258 Ind & Comm Bk Of China-H Sino Land Co 10.36 1.37 6,810,343 John Wood Group Plc 168.20 -5.08 3,513,702 5.76 -1.54 23,302,900 Icici Bank Ltd 342.00 4.48 56,494,211 Want Want China Holdings Ltd China Resources Power Holdin 8.90 -1.33 10,171,406 Wpp Plc 530.20 -0.60 3,547,023 107.40 0.00 3,201,089 Indiabulls Housing Finance L 106.30 15.86 54,680,482 Sun Hung Kai Properties Petrochina Co Ltd-H 2.75 -1.08 120,921,450 Whitbread Plc 2,576.00 -2.13 1,051,797 8.85 -0.67 11,744,642 Indusind Bank Ltd 435.40 2.66 23,556,870 New World Development Cnooc Ltd 8.36 1.58 102,449,568 - 11.06 -1.25 45,084,068 Infosys Ltd 623.85 -2.38 17,783,310 Geely Automobile Holdings Lt China Construction Bank-H 6.10 -1.77 331,962,959 49.90 -1.38 2,740,150 Indian Oil Corp Ltd 84.70 1.80 11,993,071 Swire Pacific Ltd - Cl A China Mobile Ltd 60.15 -1.23 28,423,908 30.40 1.33 11,891,317 Itc Ltd 186.35 -1.58 27,082,646 Sands China Ltd 29.50 -1.67 5,334,858 TOKYO Jsw Steel Ltd 170.65 -0.44 10,428,942 Wharf Real Estate Investment 81.15 -1.28 4,264,545 Kotak Mahindra Bank Ltd 1,130.85 -3.65 11,055,210 Clp Holdings Ltd 9.57 0.21 19,646,283 Company Name Lt Price % Chg Volume Larsen & Toubro Ltd 911.65 3.58 6,980,628 Country Garden Holdings Co 6,155,773 Aac Technologies Holdings In 38.80 0.78 16,736,000 GCC INDICES Japan Airlines Co Ltd 1,939.50 -2.98 3,051,600 Mahindra & Mahindra Ltd 356.70 1.01 1,752,170 Shenzhou International Group 89.00 -2.73 4,790,953 Recruit Holdings Co Ltd 2,764.00 -1.29 6,381,900 Maruti Suzuki India Ltd 5,130.80 0.72 Indices Lt Price Change 20,876,392 Ping An Insurance Group Co-H 76.15 -0.85 32,067,357 Softbank Corp 1,396.50 -0.07 6,110,500 Ntpc Ltd 95.10 5.78 24,473,642 China Mengniu Dairy Co 27.85 -0.54 11,259,008 Kyocera Corp 5,952.00 -2.95 1,266,300 Oil & Natural Gas Corp Ltd 75.45 1.48 Doha Securities Market 8,576.32 -275.46 17,522,308 Sunny Optical Tech 109.70 -1.53 9,729,115 Nissan Motor Co Ltd 354.20 -4.06 18,626,300 Power Grid Corp Of India Ltd 163.40 2.41 17,123,533 Boc Hong Kong Holdings Ltd 23.85 -1.24 12,166,677 T&D Holdings Inc 885.00 0.45 1,998,900 Reliance Industries Ltd 1,168.05 1.58 Kuwait Stocks Exchange 4,011.54 -13.27 61,165,997 China Life Insurance Co-H 15.44 -1.28 30,179,677 Toyota Motor Corp 6,602.00 -2.02 5,686,900 State Bank Of India 188.50 3.37 16,933,112 Citic Ltd 7.69 -0.77 18,824,940 Kddi Corp 3,176.00 0.00 7,326,100 Sun Pharmaceutical Indus 463.70 3.23 Oman Stock Market 3,539.54 -55.96 17,248,806 Galaxy Entertainment Group L 48.75 1.67 13,833,928 Nitto Denko Corp 4,850.00 -1.72 861,200 Tata Steel Ltd 288.90 1.32 6,245,583 Wh Group Ltd 7.45 -0.80 37,420,598 Hitachi Ltd 3,065.00 -2.67 2,836,100 Tata Consultancy Svcs Ltd 1,716.05 -1.10 7,001,494 Takeda Pharmaceutical Co Ltd 3,576.00 -1.95 5,454,000 Tech Mahindra Ltd 517.65 -3.90 6,251,881 Jfe Holdings Inc 667.00 -3.33 4,168,100 Titan Co Ltd 985.25 3.49 47,910,556 Sumitomo Corp 1,175.00 -1.76 3,921,500 Tata Motors Ltd 74.65 2.40 10,132,741 Canon Inc 2,218.00 -2.40 3,439,300 Upl Ltd 363.20 3.61 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The 617,281 Eisai Co Ltd 7,817.00 -1.67 675,500 Ultratech Cement Ltd 3,539.10 -1.70 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended 54,489,625 Nintendo Co Ltd 47,000.00 0.58 1,385,600 Vedanta Ltd 82.70 5.22 as an offer or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank 21,690,456 Shin-Etsu Chemical Co Ltd 11,235.00 -2.30 1,040,500 Wipro Ltd 187.85 0.70 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Mitsubishi Corp 2,210.50 -1.18 4,500,800 Yes Bank Ltd 24.60 0.41 18,765,964 this data.” Smc Corp 49,100.00 -3.19 302,500 Zee Entertainment Enterprise 135.55 1.35 18,112,295 Gulf Times 8 Friday, April 17, 2020 BUSINESS

Governors ask Trump to waive biofuel quotas amid pandemic

Bloomberg the cost of tradable credits refiners use to The battle over biofuel blending also pits extraordinary circumstances,” four of the University of Illinois agricultural econo- oil and farm sectors over biofuel blending Washington prove compliance with annual biofuel- two factions of Donald Trump’s political governors said. mist Scott Irwin said it may be difficult to requirements has only intensified amid blending targets, as well as the corona- base — farmers and oil companies — The general waiver request is distinct from win a general waiver now, since it would the coronavirus. virus pandemic that has ravaged fuel against each other as the 2020 presiden- targeted, refinery-specific exemptions. be tough to prove that economic harm Refining industry leaders argue the Five American governors are asking the demand and already spurred a closure for tial election approaches. Under the federal Renewable Fuel Stand- was not only widespread and broad-based waiver is absolutely essential as they pare Trump administration to waive US biofuel- at least one oil refinery. Continuing to implement 2020 targets ard, the EPA has the authority to waive but also caused by the biofuels rule. production and shutter facilities amid an blending requirements, arguing the cost The credit costs have more than doubled for using renewable fuel including blending mandates if domestic fuel supply “There’s a high hurdle to invoke that unprecedented collapse in fuel demand. of complying with the mandates on top this year. corn ethanol and soy-based biodiesel is inadequate to satisfy them or imple- authority,” Irwin said by telephone. The waiver request isn’t a bid to take away of coronavirus-spurred lockdowns pose a If the EPA rules in favor of the governors, imposed an added burden on refiners, menting the requirements would “severely “Certainly, the present EPA would be much biofuel’s share of the market, said Derrick “severe economic harm” to the country. it will be yet another big blow to the threatening to “severely harm the sector harm the economy or environment of a friendlier than in the past to a waiver Morgan, a senior vice president with the The governors, including Greg Abbott of American ethanol producers, who make and consequently harm the economy of state, a region or the United States.” request.” American Fuel and Petrochemical Manu- Texas and Gary Herbert of Utah, made the biofuel primarily from corn. the states and the nation,” the governors The EPA must consult with the Energy and Irwin said EPA Administrator Andrew facturers association. their plea in letters to the Environmental The entire industry is facing a reckoning. said. Agriculture departments and ask for pub- Wheeler has shown “creativity” in how the “We’re just looking for compliance costs to Protection Agency, which now has 90 Long before the pandemic emptied roads Maintaining biofuel-blending targets lic comment before making a decision. agency interprets the RFS, which could get back in line, during this time of severe days to decide on the matter. and exacerbated an oil price war, produc- would pose a “material threat” to the refin- However, the EPA has been reluctant to create an opening here. economic harm to the refining industry,” Louisiana Governor John Bel Edwards ers were battling chronic oversupply and ing sector reeling from an unprecedented grant such widespread waiver requests in Biofuel advocates already upset with the Morgan said. lodged his request earlier, on April 7. trade upheaval. collapse in fuel demand, they said. the past, including in 2012 when a US administration’s decision to exempt small Even though refining production has been Governors Kevin Stitt of Oklahoma and Now slumping demand and prices mean The current targets made assumptions drought hit the corn harvest, prompting a refineries from the mandates would view dramatically cut back, he said ethanol Mark Gordonof Wyoming also are pushing smaller producers and those with heavy about the ability of the US refining sector price surge. an even broader waiver as a “declaration will continue to be 10% of the US gasoline for relief. debt loads will struggle to ride out the to blend in biofuels that are no longer Typically, each gallon of gasoline sold in of war,” Irwin said. supply. Greg Abbott The governors cite a spike in losses. accurate in the face of these “current the US is mixed with about 10% ethanol. The long-running squabble between the “Everybody’s hurting right now.”

Allianz chief says virus hit insurers like ‘meteorite’

Bloomberg case customers pay bills late or New York default. Baete said in February that Allianz’s biggest potential risk llianz SE chief execu- would be from any bankrupt- tive officer Oliver Baete cies in Europe spurred by the Awarned the coronavirus virus’s spread, which would hit has upended insurers’ business its credit insurance coverage in models and will cause “mas- the region. sive” losses across the industry. Pimco’s Performance While The virus has forced closures Allianz is strong enough to across the entire economy and shoulder claims, its business not just in a limited number of model would require it to scale cases, Baete said. back coverage without a back- Any recovery from those stop, reinforcing the impact of shutdowns will likely take the virus on global trade, Baete Job seekers wait in line at a job application event in Portland, Texas (file). The Labour Department yesterday said 5.245mn new unemployment claims were filed last week, down longer than people currently said. from a slightly revised 6.615mn the week before. predict, he said. “It’s a very, very important “The coronavirus has hit our measure the government has industry like a meteorite im- taken,” Baete said. “We are ex- pact,” Baete said in an interview tremely stable, we could absorb on Bloomberg Television. “There all the losses,” but if insurers will be huge losses for the indus- cut back coverage, “then people try coming, it just takes a while will further reduce trade.” for those to materialise.” Under the German plan, the Baete spoke just after the government will backstop losses US weekly jobless claims German government unveiled a of €30bn ($33bn) for commer- plan, first reported by Bloomb- cial credit insurers this year. erg, to backstop losses at com- In return, insurers will sur- mercial credit insurers to keep render 65% of their premiums trade flowing and prevent to the government while con- bankruptcies. tinuing to provide coverage. Allianz is one of the compa- Allianz so far has “not in- top 5.2mn in latest week nies to benefit because one of curred any significant losses” its units, Euler Hermes Group, in its investment portfolio and Reuters 5.105mn in the week ended April activity is breathtaking,” said currently project an additional the government surveyed busi- is among the top players in that was actually doing well in some Washington 11. Joel Naroff, chief economist at 20mn in initial jobless claims ness establishments for its April market. areas, such as at its bond man- Estimates in the survey went Naroff Economics in Holland, through the end of May, after employment report. Commercial credit insurers ager Pacific Investment Man- as high as 8mn. Pennsylvania. “While we will which we expect new claims to Economists expect millions of provide cover for businesses in agement Co, he said. nother 5.2mn more The report followed dismal see an initial upturn once the fall to levels consistent with pri- job losses this month after the Americans sought un- data on Wednesday showing economy reopens, the strength or recessions.” economy purged 701,000 jobs Aemployment benefits a record drop in retail sales in and length of that recovery is not States and local governments in March, the biggest loss of jobs last week, lifting total filings March and the biggest decline in clear at all.” have issued “stay-at-home” since the 2007-2009 Great Re- for claims over the past month factory output since 1946. Last week’s claims data or “shelter-in-place” orders cession. above an astounding 20mn, Economists are predicting the brought the cumulative un- affecting more than 90% of Last month’s job losses also which would underscore the economy, which they believe is employment benefits claims to Americans to control the spread ended an employment boom deepening economic slump already in recession, contracted more than 20mn since the week of Covid-19, the respiratory ill- that started in late 2010, which caused by the novel coronavirus in the first quarter at its sharpest ending March 21. ness caused by the virus, and was the longest in US history. outbreak. pace since World War II. “We expect that claims will abruptly halting economic ac- “The speed and scale of job The Labour Department yes- Weekly jobless claims, the remain very elevated in coming tivity. losses will be more similar to a terday said 5.245mn new unem- most timely data on the econ- weeks as states struggle to clear Retail sales and production at natural disaster than a typical ployment claims were filed last omy’s health, are being closely backlogs and more companies factories tanked in March. recession,” said Dante DeAnto- week, down from a slightly re- watched for clues on the depth lay off workers in response to the Jobless claims filed this week, nio, an economist at Moody’s vised 6.615mn the week before. of the downturn, when the shutdown,” said Joseph Briggs, data for which will be published Analytics in West Chester, According to a Reuters sur- waves of layoffs may let up and an economist at Goldman Sachs next Thursday, will have addi- Pennsylvania. “Overall job losses vey of economists, initial claims when a recovery might start. in New York. tional significance as they will in April could be 10 to 20 times were expected to have fallen to “The decline in economic “Including this week, we cover the period during which larger than those in March.” Baete: “Massive” losses. US airlines’ lifeline is enough to limp along, but little more

Bloomberg through $10bn to $12bn a month, accord- allowing for appropriate compensation to jobs not as grants, but as loans, which will the stock warrants called for in deals with the government with warrants to acquire Dallas ing to trade group Airlines for America, the taxpayers,” Treasury Secretary Steven make it harder to stop layoffs and slow other majors. about 1% of the company’s stock at $24.39 and carriers have cut capacity as much as Mnuchin said in the statement. the recovery,” said Joe DePete, president ExpressJet is partially owned by United. a share over five years. 80% while parking thousands of planes. The agency expects to start distributing of the Air Line Pilots Association, a labour ExpressJet and Republic employ about JetBlue’s $936mn includes a $685mn US airlines reached preliminary deals to American slipped 1% to $11.83 at 10:01am. the funds as soon as this week, according union. 10,000 people between them, according grant. access billions of dollars in federal aid, se- in New York as the broader market to a person familiar with the matter. But Representative Peter DeFazio, an to the trade group. That’s enough to cover about 56% of curing a temporary lifeline as the industry slumped on dire economic and earnings The government is requiring large carriers Oregon Democrat who has criticised previ- Aid Details Airlines aren’t depending on payroll costs from the second and third waits for customers to start flying again. reports. to repay some of the assistance at low ous bailout programmes, said the aid to federal funds alone, having tapped credit quarters a year ago, the period used to The agreements cover all major airlines, JetBlue Airways Corp, another aid recipi- interest. cover airline payrolls should be the model markets for billions of dollars in new loans, determine the Treasury payouts. the Treasury Department said in a ent, climbed 3.8% to $9.59. The Treasury also has the ability to take for all future assistance programs. as well as existing revolvers. The government will receive “a limited statement on Tuesday, and position the Concerns remain over the Treasury’s stock warrants, giving it an upside in any The process of hammering out deals Tens of thousands of employees have vol- number” of stock warrants, the com- government to start doling out $25bn in aggressive negotiating stance, said Jamie share rebound. was “neither easy nor perfect,” but it unteered for time off, from unpaid short- pany said. “This law does not solve the assistance allocated for passenger carriers Baker, an analyst at JPMorgan Chase. Through Tuesday, a Standard & Poor’s was needed to protect about 750,000 term voluntary leave to early retirement. long-term problems that the coronavirus in the $2.2tn stimulus package signed into The department insisted on taking poten- index of nine airlines was down 55% from airline industry jobs, said DeFazio, who While the funds will allow 750,000 airline pandemic is creating but it buys us some law March 27. tial equity stakes in companies receiving its 2020 high in mid-January. is chairman of the House Transportation employees to stay on payrolls through much-needed breathing room,” JetBlue American Airlines Group Inc said it would aid. Both provisions initially met with some Committee. September, it is only the first step in “a CEO Robin Hayes told employees. get $5.8bn in support, while Delta Air Lines “What was once thought to be free, formu- pushback from airlines, their unions and Not all industry players have agreements long path to recovery,” according to American’s package includes a payroll Inc said it would receive $5.4bn. laic, and easy turned out to be drawn out, some members of Congress, and still drew in place. Airlines for America. grant of $4.1bn and a loan of $1.7bn. “This is an essential step, but just one of somewhat expensive, and intense,” Baker criticism after Mnuchin’s announcement. Two large regional airlines that work The International Air Transport Asso- The company said it would further reduce many that will get us through the next wrote in a note to clients. “Considering Grants, Loans Under American Airlines’ under contract to major carriers haven’t ciation, the biggest grouping of global its flight schedule for June and beyond. several months,” Delta chief executive what turned out to be an arduous grant agreement, which has yet to be finalised, yet been able to make deals, the Regional airlines, warned Tuesday that the industry About 32,000 employees have chosen to officer Ed Bastian said in a message to process, this level of sophistication and the Treasury would be issued warrants Airline Association said. may surrender $314bn in ticket sales this retire early, accept reduced work or take employees. “The funding, along with self- hard-line approach suggests (at least to that could be converted to 13.7mn shares Talks with the Treasury are continuing, year due to the coronavirus. leave, and the Fort Worth, Texas-based help measures we have taken, will pre- us) that a difficult path for loan applicants of stock at $12.51 each. said the trade group. Not all airlines have disclosed details of airline will reopen opportunities for more vent furloughs and pay rate reductions may lay ahead.” The warrants, equivalent to about 3% of “We remain hopeful that Treasury will their aid packages yet, but a picture has to do the same as it seeks to use the through the end of September, despite ‘Strategic Importance’ the current shares outstanding, expire work rapidly and flexibly to find a solution emerged at several major carriers: government aid to survive the collapse of the 95% drop we’ve seen in passenger United Airlines Holdings Inc, Southwest after five years. for those carriers facing unique hurdles,” Southwest will receive $3.2bn, including a air travel. traffic.” Airlines Co, Alaska Air Group Inc, Alle- American would issue warrants for an- RAA President Faye Malarkey Black said nearly $1bn unsecured loan with a 10-year “With this level of assistance, we now The aid gives US carriers room to limp giant Airlines, Frontier Airlines, Hawaiian other 38mn shares under its plan to seek a in a statement. “The alternative would be term. believe we have the financial resources along as the Covid-19 pandemic and Airlines and SkyWest were among the separate $4.75bn loan from the govern- catastrophic and, we hope, unacceptable The Dallas-based carrier will issue 2.6mn necessary to help us withstand this crisis government travel restrictions erase most carriers getting assistance, according to ment, the airline said in a regulatory filing to both Congress and Treasury.” warrants to the Treasury. and be in position to serve the traveling demand for commercial flying and plunge the Treasury. on Wednesday. The two carriers are Republic Airlines and Delta’s package includes $3.8bn in a grant public when they are ready to start flying the world’s airlines into their worst-ever The program “will support American “Unfortunately, Treasury is undermining ExpressJet Airlines, according to a person and $1.6bn under a 10-year unsecured again,” American CEO Doug Parker and crisis. workers and help preserve the strategic the intent of the CARES Act by treating a familiar with the talks. loan. President Robert Isom said in a message In the US, the industry is projected to burn importance of the airline industry while portion of the grants designed to protect Neither is publicly traded, so can’t provide The Atlanta-based carrier will provide to employees. Gulf Times Friday, April 17, 2020 9 BUSINESS

US stalling massive IMF liquidity boost over Iran, China: Sources

Reuters The Trump administration does not want and yuan, are the IMF’s official unit of US resistance, told a news conference on On Tuesday, the IMF said the recession countries, including grants to help these Washington Iran and China to have access to billions exchange. Wednesday: “What we are concentrating sparked by the virus would be far deeper countries make debt payments to the of dollars in new resources with no condi- Member countries hold them at the Fund on, is to act decisively with what we have, than the Great Recession of 2008 and IMF,” the spokeswoman said in an emailed tions, two of the sources familiar with the in proportion to their shareholdings. and where there is full consensus among 2009, shrinking the global economy by statement. US opposition to opening new avenues IMF’s deliberations said, asking not to be The IMF last approved a $250-billion new members. 3.0% in 2020. French Finance Minister Bruno Le Maire of funding for Iran and China is prevent- identified given the sensitivity of the issue. allocation of SDRs in 2009, boosting li- We recognise that there are other options The Trump administration’s opposition argued in favor of a new SDR allocation of ing the International Monetary Fund They added that the IMF’s move would quidity for cash-strapped countries during to be explored, and we will continue to do comes at a time when US tension with about $500bn, saying in a statement to the from deploying a powerful tool to help give even wealthy countries new assets the last financial crisis. so,” she said. China is running high over the causes of IMF’s steering committee it would provide countries fight the economic impact of that are not necessarily needed. Doing so again now could provide more Among these efforts is persuading the virus and a long-running trade war. an extra $16bn to low-income nations that the coronavirus, according to two sources Even embattled Venezuela would get an flexibility to the 102 countries that have wealthier countries to donate or lend their US-Iran tension nearly boiled over into could be “decisive” in battling the virus. familiar with the matter. allocation, although the IMF has blocked already sought IMF emergency loans and existing, unused SDRs to IMF lending facili- armed conflict in January. Columbia University professor Joseph A massive IMF liquidity injection through Caracas’ access to its SDRs while inter- grants, and allow aid to flow to high-debt ties for poor countries. The US Treasury Department has pressed Stiglitz, a former World Bank chief econo- issuance of new Special Drawing Rights, national recognition of its government countries that can’t qualify for new IMF The Fund is trying to triple the resources the IMF instead to focus on quickly mist, said new SDRs would not cost US something akin to a central bank “print- remains unclear. loans, such as Argentina and Zimbabwe. in its Poverty Reduction and Growth Trust deploying its $1tn in existing resources, taxpayers anything. ing” new money, has the backing of many “International financial institutions are An SDR expansion has attracted some to $18bn, she said. including expanding emergency loans and “And if we can help emerging markets and finance ministers, prominent economists, important platforms for international celebrity advocates, such as investor Some say $500bn is too little. grants to more than 100 countries that developing countries, it will rebound to and non-profit groups. co-operation, not political tools for a George Soros and U2 lead singer Bono’s Former US Treasury secretary Larry Sum- have sought aid. us in terms of health and in terms of the It could provide hundreds of billions of dol- minority of countries to manipulate,” said ONE anti-poverty organization, along with mers and former British Prime Minister A US Treasury spokeswoman declined to economic recovery,” he said. lars in urgently needed foreign exchange a statement from China’s foreign ministry trade unions and faith-based groups. Gordon Brown, who both pushed for the comment specifically on the SDR alloca- IMF officials, while acknowledging that a reserves for all of the IMF’s 189 member sent to Reuters. IMF managing director Kristalina Geor- 2009 SDR allocation, called on Wednesday tions, but said the agency supported a va- deal for a new SDR allocation is unlikely countries, and finance officials are debating India also opposes a new SDR allocation, gieva floated the idea of a $500bn SDR for a $1tn-plus SDR issuance. riety of efforts at the IMF to provide rapid, this week, are taking a patient approach, the issue during this week’s virtual IMF and the two sources said, but New Delhi’s issuance in March to G20 finance officials. “If ever there was a moment for an expan- targeted assistance to countries in need. hoping to eventually persuade US Treas- World Bank Spring Meetings. reasons have not been made known. But the group said in a statement after a sion of the international money known “We support accelerating IMF procedures, ury officials of the merits of the move. But sources said the United States, the A spokesman for India’s Finance Ministry videoconference on Wednesday there was as Special Drawing Rights, it is now,” they higher access from the IMF’s emergency “Nothing is off the table,” IMF chief IMF’s dominant shareholder, actively op- did not respond to a request for comment. “no consensus on the issue.” wrote in an op-ed in the Washington Post lending facilities, and support from donors economist Gita Gopinath told Reuters on posed the new fundraising. SDRs, based on dollars, euro, yen, sterling Georgieva, who also has acknowledged on Wednesday. for the IMF’s assistance to low income Tuesday.

Green Deal Apple developing high-end backed by EU as right cure for wireless headphones virus economic with interchangeable parts fallout

Over-ear headphones customisable via magnetic Bloomberg attachments Brussels

Bloomberg Los Angeles The Green Deal programme to slash fossil- fuel pollution in the European Union will be part of the cure for the economic slump pple Inc is developing over- coming from the coronavirus pandemic. ear wireless headphones with European Commission President Ursula Aparts that can be swapped in von der Leyen and European Council and out, seeking to augment its Air- President Charles Michel have stood Pods business with a high-end audio firmly behind the far-reaching package of product, according to people famil- environmental measures to make slash iar with the matter. emissions to zero by 2050. The Cupertino, California-based It was launched just before the outbreak of tech giant is working on at least two the coronavirus pandemic that is pushing variations, including a premium ver- the region into a recession, threatening sion with leather-like fabrics and investment. “On the European Green Deal, a fitness-focused model that uses the political necessity is as strong as it was lighter, breathable materials with before the crisis because climate change small perforations, the people said. and global warming did not stop,” von der Prototypes of the headphones Leyen told a news conference in Brussels have a retro look with oval-shaped on Wednesday. ear cups that swivel and a head- The commission, the EU’s executive arm, is band connected by thin, metal arms. drafting plans for a recovery package for The arms stem from the top of the the economy that suffered from factory ear cups rather than the sides, the closures, cancellation of flights and draco- people added. They asked not to be nian limits on public life. identified discussing products that The bloc’s heads of government are set to haven’t been announced. discuss measures worth more than half The ear pads and headband pad- a tn euros next week to help mitigate the ding attach to the frame of the head- blow from the pandemic. phones magnetically so they can be European decision-makers are coming un- replaced by the user. That approach der growing pressure from companies and is similar to some headphones from non-governmental organisations to stick Master & Dynamic and Bowers & to the sustainability principles in designing Wilkins, though those models only A man holds a pair of Beats Solo Pro wireless headphones, manufactured by Beats Electronics, a subsidiary of Apple, in Tokyo. Apple is working on at least two a recovery package. have magnetic ear pads. Apple’s variations of headphones, including a premium version with leather-like fabrics and a fitness-focused model that uses lighter, breathable materials with small A new alliance of ministers, businesses and more modular design will allow us- perforations, sources say. researchers have urged the EU to build it ers to customize their headphones around the Green Deal. like they do with the Apple Watch. iser Electronic and Sony Corp, which familiar with the California com- The AirPods were updated with a product strategy that also includes Its 180 signatories included chief executive The design may also mean the same currently retail around $350. pany’s supply chain, but it’s still not new version in 2019 and the upgrad- the HomePod speaker and Beats officers of Enel SpA, Ikea of Sweden AB, set of headphones would be convert- The Apple headphones have been fully recovered from the pandemic’s ed AirPods Pro with noise canceling headphones. Apple is developing Volvo AB and Unilever NV. Climate change ible from comfort to fitness use and in development since at least 2018 disruption. were released in October. a smaller and cheaper HomePod, is more than ever an “essential lever” to back again, the people said. and their launch has been postponed Apple’s ability to do final testing In its last fiscal year, Apple gener- Bloomberg News has reported. It ensure a proper transition, said Michel, An Apple spokeswoman declined at least twice, people familiar with on audio products is also potential- ated $24.5bn from accessories, in- acquired Beats Electronics in 2014 who chairs meetings of EU leaders. to comment. their progress said. The company ly compromised by the company’s cluding AirPods, Beats headphones for $3bn and has been updating its The Green Deal, which also envisages a Apple plans to use similar wire- aims to unveil the product later this virus-curbing measure of moving and the Apple Watch, almost as hardware range in spite of it com- push for more recycling and decoupling less-pairing and noise-cancellation year, however complications during most of its employees to working re- much as it took in from the Mac and peting with Apple-branded acces- economic growth from resource use, will tech in its upcoming headphones to final development or from the Cov- motely. about $3bn more than the iPad. The sories. also strengthen Europe’s economy by what is already in the AirPods Pro. id-19 pandemic could affect the tim- Apple launched its first AirPods accessories business is instrumental The new Apple headphones will reducing the region’s reliance on external The new headphones will use Siri ing and features again, they added. earphones in 2016 when it removed to the company’s push to generate join a long list of other products in suppliers, according to von der Leyen. for voice control and have a limited China’s Goertek Inc is among the iPhone’s headphone jack. The more revenue per user as people hold the company’s pipeline, including The EU will need to shorten and diversify set of integrated touch controls. The the partners Apple has discussed product powered the company’s on to their iPhones for longer. new iPhones with 5G connectivity, a its supply chains and shift to a circular product will compete with high-end for handling assembly of its head- wearables sales, giving it a key The Apple headphones and Air- Tags location accessory, lower-cost economy. offerings from Bose Corp, Sennhe- phones, according to other people growth driver beyond the iPhone. Pods are part of a broader audio iPads and new Macs. Volkswagen drops 2020 targets as Q1 profits plunge on virus

Rauters, DPA has been ramping up again since mid-Febru- yesterday predicted a sharp fall in profits for additional shifts with a large time interval Frankfurt ary as the virus ebbs. the first quarter as a result of the impact on between them to be scheduled later to While the last weeks have been marked sales of the novel coronavirus pandemic. ensure that by “extensive counter measures to reduce Operating profit would come in at €15mn workers’ paths will not cross at the entrance German car giant Volkswagen yesterday costs” and “securing liquidity”, the group is ($16mn), by comparison with 1.2bn in the to the plant. withdrew its 2020 financial targets as it planning a “phased restart of production” in same quarter last year, which was itself seen The spokeswoman was unable to say when warned of collapsing profits due to the coro- the rest of its global network. as weak, the company reported. the plant at Neckarsulm in the neighbouring navirus, but said it plans to gradually restart On Wednesday, VW said it would reopen Turnover is likely to have fallen to €12.5bn, state of Baden-Wuerttemburg would restart production in coming weeks. production at its own-brand factories in east- the VW subsidiary reported from its Ingol- operations. First quarter operating profit fell around ern German city Zwickau and Slovak capital stadt headquarters in Bavaria, noting that The company shut down production at both 80% compared with January-March 2019, to Bratislava from next week. the pandemic had brought car sales to a halt. its German plants on March 23 as part of €900mn ($979mn), VW said in preliminary Other German factories and sites in Portugal, This had in turn led to drop in demand and measures to contain the novel coronavirus figures. Spain, Russia and the US are to reopen in the bottlenecks in production. pandemic. With “standstill” in its retail network, sales fell week beginning April 27. Audi said its current forecast for the year Half of Audi’s 61,000 German workers are around 8% to €55bn. In May, plants in South Africa, Argentina, could not be maintained. currently on short-time pay. “The full year outlook for 2020 can no longer Brazil and Mexico should come back online. “The effects generated by the pandemic Engine production resumed at Audi’s Hun- be achieved,” the sprawling 12-brand group “It is currently not possible to determine on customer demand, supply chains and garian plant at Gyor on Tuesday, but with just said after a “decline in customer demand when a new outlook can be made for the full production cannot at the moment be reliably one shift, instead of the normal three. and supplier bottlenecks led to production year” across the whole group, VW said. estimated,” The Volkswagen Group is planning to restart stops.” “Impacts resulting from the pandemic on the company said. its VW plants from next week in Zwickau in Nevertheless, “economic recovery during customer demand, the supply chain and Earlier, an Audi spokeswoman said the eastern Germany and in Bratislava in Slova- the course of the year appears possible,” VW production cannot currently be accurately company planned to restart production at kia next week, with the remaining German A VW sign is seen outside a Volkswagen dealership in London. VW added, pointing to “positive developments” forecasted.” Ingolstadt at the end of April. plants and those in Portugal, Spain and the said it would reopen production at its own-brand factories in eastern in vital overseas market China, where output Meanwhile, German luxury carmaker Audi Initially, just one shift is planned, with United States following the week thereafter. German city Zwickau and Slovak capital Bratislava from next week. Friday, April 17, 2020 GULF TIMES BUSINESS

IN FOCUS More stability expected following Opec+ deal?

www.abhafoundation.org Arabia’s 400,000b/d additional voluntary cut. As the historic deal was inked, oil bench- Oil is always viewed as the world’s most marks began to bounce back on the hope precious resource; nations have often that the proposed cuts will bring some battled over access to oil to maintain their stability to the markets. However, gains security of supply and financial stability. were capped on concerns that the volume However, the current global pandemic of cuts being discussed equates to just and subsequent slump in the price of oil is a fraction of the demand loss. Some causing potential oil investors to question analysts estimate that worldwide fuel con- the profitability. Oil prices have dropped sumption has reduced by roughly 30% to an eighteen-year low, as oil cartels due to the global lockdown aimed to slow continue to share little revenue with ever- down the spread of coronavirus. As much increasing stocks at their disposal. as 35mb/d cuts are required to control Prior to the pandemic, regulators were supply going forward. Analyst for Oil Price already struggling to deal with falling oil Information Service, Tom Kloza, believed prices, coupled with a crude tsunami, and rate agreement with the United States, the cut to be “inadequate” to stabilise oil then the Covid-19 outbreak swept market who gave Mexico some assurance to prices, even into the summer. demand away. Mohamed Barkindo, Opec share with them their expected 250,000 Opec+ is also targeting G-20 countries in Secretary-General, described the virus as b/d production cuts. Norway, which is in- the hope to secure further commitments an “unseen beast” that had created a “hor- terestingly not a member of Opec, Opec+ to 5mn barrels a day of production cuts rifying” supply and demand outlook for or the G20, and represents around 2% of from the G-20 members, in addition to the the industry “beyond anything we have global oil output, also signalled willing- initial 10mn reduction in its output pro- ever seen before”. ness to cut its production share. posed in the agreement. Currently, these To save further price slips and deterio- The success of the deal was then reaf- deep production cuts are seen as the only rating conditions in the job market the firmed by US-President in his subsequent solution to the rapidly decaying demand United States urged oil producers to tweet: “The big Oil Deal with Opec Plus and to avoid the crisis of oil storage. take countermeasures to stabilise this is done. This will save hundreds of thou- Opec and its allies, through this agree- volatile market. Following pressure from sands of energy jobs in the United States. ment, has certainly overshadowed its US President Donald Trump, Saudi Arabia I would like to thank and congratulate initial fragility during the period of the floor under prices as demand for energy and the International Energy Forum (IEF) Williams. “In the next four to eight weeks, and Russia finally agreed with Opec to President Putin of Russia and King Salman price war between the two oil giants. spirals downwards? In view of current as observers. economic indicators are expected to resolve their feud over oil supplies. Ed of Saudi Arabia. I just spoke to them from VP of Macro Oils at Wood Mackenzie, fundamentals and the consensus market With a more certain future, Opec+, mem- turn green in Asian and Middle Eastern Morse, Citi’s global head of commodities, the Oval Office”. Ann-Louise Hittle, has optimistic views perspectives, the countries and producers ber countries are also expecting early regions.” For most parts of the Europe and referred to the end of the feud between US Energy Secretary Dan Brouillette add- about the future with this agreement and outside the Opec+ group, such as Canada, signs of some resumption in the industrial US, Economist also seem optimistic for the two giants as the two agreeing to take; ed: “Today’s crisis transcends the interests implied that even a partial observation Norway and Brazil, should strengthen activities across the globe. China, the the summer months and are anticipating “unprecedented measures for unprec- of any one nation and requires a swift to the deal, would impact the market in a this global agreement by affirming their world’s largest oil consumer has reported strong rebound later in the year. These edented times.” and decisive response from us all. Failure positive manner. She added: “the forces commitments. a 10% increase in refiners’ output in April, positive outlook projections by analysts After four days of talks, the powerful to act has far-reaching consequences to of supply and demand will eventually The group is expected to reconvene on as domestic demand in the country be- and world leaders coming together to energy alliance Opec+, led by Saudi each of our economies.” determine the future strategies required 10th June to monitor the progress and gins to increase. According to the German broker a deal towards a more sustainable Arabia and Russia (a non-Opec member), Initially, oil producers will curtail crude oil to achieve price equilibrium in this ever- determine if further actions are neces- Chamber of Commerce in Beijing, Chinese market, provides some optimism that along with their allies, proposed a deal to output to 10mb/d, starting on 1 May 2020, evolving oil market”. sary. The success of the Opec+ meeting, operations may be back to normal by July some stability may result in the near future. cut a massive 10mn barrels per day from for an initial period of two months. For “I think it is impressive that Opec has signals a new dawn illustrated by good 1, as the nation appears to have halted the supply, amounting to almost 10% of global the next six months, the agreed crude oil got this far and persuaded countries like credibility and stronger alliance among spread of the virus. n This article was supplied by the production. production will be 7.7mb/d. It will further Iran and Iraq to agree,” said John Hall, producers. The Opec+ meeting welcomed “Transport fuel demand typically picks Abdullah bin Hamad Al-Attiyah Mexico was initially the lone opposer to be reduced to 5.8mb/d for the next six- Chairman of Alfa Energy Group in London. Argentina, Colombia, Ecuador, Egypt, up in Asia and Middle East during the International Foundation for Energy this record deal, until they reached a sepa- teen months. This does not include Saudi But will the cuts be enough to throw a Indonesia, Norway, Trinidad and Tobago month of Ramadan” said economist Mark and Sustainable Development.

Spaniels and Labs may be the next UK headed for historic slump big virus hunters Bloomberg London as retail sales slide, firms close Finding virus carriers — especially those with no symptoms — is among the biggest hurdles to addressing the pandemic. UK retail spending down 27% in two big backlog of loan applications. The BRC said But what if dogs can do that? Scientists in Lon- weeks to April 4; ONS says 25% of firms total retail spending in the five weeks to April don say that dogs could in fact revolutionise the have suspended trading due to Covid-19; 4 — this year’s March period for British retail hunt for Covid-19 by sniffing out subtle odors pro- firms still trading have furloughed one in sales — was down by 4.3% compared with the duced by the virus when within the human body. five staff; BoE data shows banks expect previous year. The London School of Hygiene and Tropical record jump in business lending This fall came despite a surge in supermarket Medicine is crowdfunding a project to train spending in the early part of the month, when canines to detect healthy-seeming people who Reuters British shoppers stocked up — and in some haven’t necessarily realised yet they are carriers. London cases engaged in panic-buying — ahead of the If the project is successful, the animal detectives lockdown. could be working across Britain by the summer. This was the biggest monthly fall since the “It’s very early stages,” says James Logan, head ritain’s economy looks set for a widely series began in 1995, once distortions linked to of LSHTM’s Department of Disease Control. “We feared record contraction after figures the timing of Easter and Black Friday sales pro- know diseases have odors — including respiratory Bshowed retail spending plunged by more motions are stripped out, the BRC said. diseases such as influenza — and that those odors than a quarter and one in four firms stopped Like-for-like sales, which take account of are in fact quite distinct. There is a very, very good trading temporarily due to the coronavirus changes in floor space, dropped by 3.5%. De- chance that Covid-19 has a specific odor, and if it lockdown. partment store chain Debenhams and fashion does I am really confident that the dogs would be The British Retail Consortium (BRC) report- brands Oasis and Warehouse are among the able to learn that smell and detect it.” ed yesterday a 27% year-on-year drop in sales A pedestrian passes a Debenhams department store in London. Debenhams and fashion brands well-known British high street businesses to Dogs with a highly developed sense of smell are in the two weeks to April 4, which included the Oasis and Warehouse are among the well-known British high street businesses to have fallen into have fallen into financial difficulties in the past already used to diagnose many medical condi- period after the March 23 start of a lockdown financial difficulties in the past couple of weeks. couple of weeks. tions, including Parkinson’s disease and several that has shuttered shops other than supermar- Credit and debit card company Barclay- types of cancer. kets. In those businesses that remained open, a Bank of England data, collected from March card reported a similar picture in its monthly The LSHTM itself has already trained up ani- “The closure of non-essential shops led to fifth of workers had been placed on temporary 2-20, showed lenders expect the biggest rise in spending data for March, which showed a mals—labradors and cocker spaniels tend to be deserted high streets and high double-digit leave. business borrowing since the survey began in 6.0% decline, the biggest since the survey be- especially suited—to detect malaria. declines in sales which even a rise in online Britain’s budget forecasters say the economy 2007 but for demand for new mortgages to fall gan in 2015. Their success rate far exceeds required WHO shopping could not compensate for,” BRC chief could be on track for an unprecedented 35% by the most on record as the housing market While supermarket spending was up 21% on standards, the centre says. executive Helen Dickinson said. decline in the April-June period. freezes up. the month, travel spending, including public If the project works, the dogs could be deployed A separate survey from the Office for Na- Even if the lockdown eases and growth re- The government has promised to under- transport, sank by 40% and consumer confi- to screen staff at hospitals and care homes and, tional Statistics showed 25% of businesses had bounds, annual output could still fall 13% in write £330bn ($412bn) of lending to busi- dence fell to a survey low. once regular travel resumes, sniff out unwitting temporarily closed or paused trading since the 2020, the biggest annual decline in over 300 nesses to keep them alive while large parts of Just 25% of people surveyed felt confident carriers at airports and rail stations. lockdown. years. the economy are closed, but banks are facing a about the economy, down from 42% in February.

ECB eases bank risk capital requirements to calm markets

AFP Berlin

The European Central Bank said yesterday it would temporarily lower its requirements on how much capital banks have to set aside to deal with market risk, in a bid to calm markets roiled by the coronavirus pandemic. “With this decision, the ECB is responding to the extraordinary levels of volatility recorded in financial markets since the outbreak of the coronavirus,” said the central bank for the single currency zone in a statement. The ECB said it would review its decision to reduce a supervisory measure for banks — called the qualitative market risk multiplier — after six A euro currency symbol sits on a Eurosystem months. sign outside the ECB headquarters in Yesterday’s move is the latest in a series of Frankfurt. The ECB said it would review its measures unleashed by the ECB to help the decision to reduce a supervisory measure single currency zone cope with the economic for banks — called the qualitative market risk backlash of the coronavirus pandemic. multiplier — after six months. Last week, the bank announced an “unprecedented” easing of collateral well as keeping up the current pace of hoovering requirements to boost bank lending. up €20bn a month in government and corporate The Frankfurt-institution last month unveiled bonds. a “big bazooka” with its €750bn bond-buying The ECB has also announced a fresh round of scheme to encourage spending and investment ultra-cheap loans to banks and more generous in the region. terms to entice lenders to grant loans to small It came on top of an earlier pledge to spend an businesses, seen as particularly vulnerable in the extra €120bn on asset purchases this year, as current upheaval.