REVIVING GROWTH : Page 2 INFLATION SLOWS: Page 11 RBI cuts rates to Bank of Russia near-decade hints at rate cut low levels this month

Saturday, October 5, 2019 Safar 6, 1441 AH TRUMP CHEERS DATA WITH TWEET: Page 12 US unemployment GULF TIMES falls to 50-year low BUSINESS of 3.5% in September

US trade deficit up in August Qatar set to host sixth Gas as imports rise to record high

Reuters Summit of GECF in 2021 Washington The US trade deficit increased in August atar will host the sixth Gas as imports of consumer goods surged to a Summit of the Gas Export- record high, but the gap with China, a focus Qing Countries Forum (GECF) of the Trump administration’s “America First” in 2021, off ering an opportunity for agenda, narrowed. dialogue at the highest levels on the The Commerce Department said yesterday latest developments and trends re- the trade deficit rose 1.6% to $54.9bn. lated to the global gas industry. The July trade gap was unrevised at The announcement was made dur- $54.0bn. ing the conclusion of the 21st GECF Economists polled by Reuters had forecast ministerial meeting in Moscow. This the trade gap would widen slightly to will be the second summit to be held $54.5bn in August. in Doha after the forum’s fi rst sum- The politically-sensitive goods trade mit on November 15, 2011. deficit with China fell 3.1% to $31.8bn on an “We look forward to a highly suc- unadjusted basis, with imports declining cessful meeting that refl ects our deep 0.8%. Exports to China increased 8.0% in belief in dialogue and co-operation in August, boosted by soybean shipments. the eff ort to meet the world’s growing The goods trade deficit with the European demand for energy,” said HE Saad bin Union jumped 23.7% to $15.3bn. Sherida al-Kaabi, Minister of State for The United States and China have been Energy Aff airs, the president and chief embroiled in a 15-month trade war. executive of Qatar Petroleum. Washington announced this week tariff s He said Qatar is committed to on aircraft, other industrial products and the responsibilities it carries as the agricultural products from the EU as part of world’s leading liquefi ed natural gas a World Trade Organisation penalty award in producer, foremost of which is en- a long-running aircraft subsidy case. couraging regional and international Trade experts expect the EU will impose dialogue as well as promoting natural tariff s on US goods next year over subsidies gas as the cleanest of fossil fuels and for Boeing. the destination fuel in the transition In August, goods exports rose 0.3% to to low carbon economies. $138.6bn. They were lifted by exports of Earlier addressing the ministe- soybeans, which rose $0.3bn. rial meet in Moscow, al-Kaabi had Exports of industrial supplies and materials stressed the importance of natural increased $1.5bn, with shipments of crude oil gas in meeting the economic and en- rising $0.8bn. vironmental challenges facing energy But capital goods exports fell $1.4bn, with consumers around the world. aircraft shipments declining $1.3bn. Drawing attention to unprece- Goods imports increased 0.6% to $213.0bn dented recurrent climatic conditions, in August. including mean temperatures, tur- The import bill was boosted by a $1.9bn bulent seasonal cycles and extreme surge in capital goods imports to the events, he had said it is time to take highest on record. Cellphone imports rose another look at natural gas and the by $1.1bn. number of advantages it has to make When adjusted for inflation, the goods trade it a pivotal element in any strategy to HE Saad bin Sherida al-Kaabi with the other members of GECF at the 21st ministerial meet in Moscow. deficit rose $0.3bn to $85.7bn in August. tackle environmental challenges. Trade could remain a drag on gross The GECF, which is headquartered mental organisation that provides among its member countries. It is porting countries and was set up with ordination and strengthen the collabo- domestic product in the third quarter. in Doha, is an international govern- a framework for knowledge sharing made up of the world’s leading gas ex- the objective to increase the level of co- ration among its member countries.

UK business morale ‘Strong economy’ driving more S Korean firms to Qatar

By Peter Alagos with their South Korean counterparts, so slides in Q3, especially Business Reporter we set up the business council and we are hoping that this makes it easier for people to share their ideas, experiences, and in manufacturing: BCC Qatar’s robust and resilient economy knowledge,” Kim pointed out. has continued to attract a wide range of Asked about other promising sectors South Korean companies that want to where Qatari and South Korean Reuters activity, with unrelenting uncer- explore the nation’s diverse investment companies could collaborate further, London tainty over Brexit and a notable markets, according to an off icial of the Kim said in the past both governments slowing in global growth pros- newly-established Korea Business Council “have signed many collaborative MoUs pects dragging down almost all – Qatar. together.” ritish business activity the key indicators in the quarter,” Founding chairman Dae Ho Kim, who “We hope that a lot of them would wilted in the third quarter, BCC head of economics Suren has been facilitating network exchange develop into fruitful endeavours that Bespecially in manufactur- Thiru said. “Looking forward, between Qatari and South Korean could benefit both the countries. There ing, according to a survey yes- weakening orders, confi dence companies, SMEs, and startups since are a lot of South Korean companies terday that boded poorly for the and investment intentions sug- 2016, said the June 2017 economic that are very much interested in setting country’s economy in late 2019 gest that unless action is taken blockade against Qatar has failed to stop up businesses in Qatar, considering that as it faces the Brexit crisis and a the UK’s current weak growth the economic growth of the country. the relationship of our country and the global slowdown. trajectory could drift markedly “We always look at sharing knowledge, Middle East goes back to the 1970s,” Kim The British Chambers of lower over the near term.” experiences, and best practices. For stressed. Commerce’s (BCC) survey of Consumer spending, boosted companies that visited Qatar, they now He added: “Looking back, most of the 6,600 companies showed do- by the fastest wage growth in 11 want to experience the Qatari market. developments between Qatar and South mestic manufacturing sales fell years and low unemployment, I started this before the economic Korean companies are in the construction at the fastest pace since late 2011. has helped to off set the eco- blockade, and we still kept coming here sector and the oil and gas industry. South Growth in the much larger nomic slowdown although there even after blockade and we have started Korea is among the leading nations in services sector also slowed. have recently been some signs of seeing the changes happening across the knowledge transfer, and this is something Overall, the survey chimed a weakening in job creation. Qatari economic and business landscape. Qatar did not give in to the blockade and the government continued to drive the that could be enhanced between Qatar with other signs of a sharp dete- The BCC said more manufac- “We saw a lot of potential and investment market, says Korea Business Council – Qatar founding chairman Dae Ho Kim. and our country. rioration in business confi dence turers reported a worsening of opportunities. Qatar did not give in to the PICTURE: Jayaram “South Korea is looking for more in Britain as the October 31 Brex- cash-fl ow than those reporting blockade and the government continued international partners and new markets it deadline nears with little clar- an improvement. The diff erence to drive the market; it was looking for which is why the business council was that provides the network and connection to enter. And for the Middle East region, ity on how or if the country will was the widest since late 2011. champions to make Qatar proud and established here on March 31 this year. to the local enterprises in Qatar. South Korea sees a lot of potential here leave the European Union. A renewed drive to stockpile to stand out in the region,” Kim told Gulf “Our companies back in South Korea are “South Korean companies have been and I think Qatar would be a good country The BCC survey also pointed avoid disruption after the October Times in an interview. very happy to come to this country even doing business in Qatar for a very long to start something because I believe it is to the biggest drop in manufac- 31 Brexit deadline — shown in an Kim stressed that many “well-experienced though it may be challenging to expand time but they didn’t have that proper a market that is trying to drive new and turing export orders in 10 years. IHS Markit/CIPS survey on Mon- and mature” South Korean companies to other markets, which is why the entity where the local companies and interesting fields, and South Korea should “Our fi ndings point to a wor- day — is likely to put more pres- want to explore diff erent sectors in Qatar, business council serves as an umbrella business people were able to get together be part of this, as well.” rying drop-off in UK economic sure on manufacturers’ fi nances. Gulf Times 2 Saturday, October 5, 2019 BUSINESS

Total to adjust PNG staff India’s central bank cuts as LNG project rates to near decade lows delays Reuters last trading down 0.62%. The 10-year benchmark bond Mumbai yield rose to 6.63% from 6.59% before the announcement, while the rupee weakened slightly to 70.97 per dollar. Bloomberg “While the recent measures announced by the govern- Sydney he Reserve Bank of India yesterday cut the key pol- ment are likely to help strengthen private consumption icy rate to its lowest levels in nearly a decade, step- and spur private investment activity, the continuing slow- Tping up its eff orts to kickstart an economy growing down warrants intensifi ed eff orts to restore the growth rench energy giant Total at its slowest pace in six years. momentum,” the MPC, said in its statement. SA is adjusting staff in Pa- The central bank, which also sharply trimmed its 2019- To revive the faltering economy, the government in Sep- Fpua New Guinea amid de- 20 growth forecast, said that it will maintain its “accom- tember announced a steep cut in the corporate tax rate – to lays on a $13bn liquefi ed natural modative” policy stance “as long as it is necessary” to re- 22% from 30% – triggering the biggest intraday gain in In- gas venture with Exxon Mobil vive growth, and ensure infl ation remains within target. dian stocks in more than a decade. Corp., according to people with The six-member Monetary Policy Committee (MPC) Asia’s third-largest economy expanded by just 5% in the knowledge of the situation. cut the repo rate by 25 basis points to 5.15%, for a fi fth June quarter, its slowest pace since 2013, on the back of low Total’s staff in the capital city straight meeting this year and in line with expectations in consumer demand and a slowdown in government spend- of Port Moresby were informed a Reuters poll. ing amid global trade frictions. that numbers will be adjusted The reverse repo rate was reduced to 4.9%. Surveys this week also showed the nation’s manufac- in line with reduced activity And markets expect further easing after yesterday’s turing and services sectors under increasing strain, un- on its Papua LNG project, said reduction, with the RBI seen delivering another 15-basis derlining the diffi culties facing businesses. the people, who asked not to be point cut at its December policy, before an extended pause, The weak GDP numbers prompted several economists identifi ed as the information according to a Reuters poll conducted before the policy re- to lower their growth projections. isn’t public. Despite the delays, view. The RBI also cut its real GDP growth forecast for 2019- the company remains commit- With the protracted Sino-US trade war raising the risk 20 to 6.1% from a prior projection of 6.9%. ted to the development, one of of a global recession, central banks around the world – The RBI in its Monetary Policy Report (MPR) said it ex- the people said. Total and Exxon including the US Federal Reserve and the European Cen- pects real GDP growth to recover in the back half of 2019- didn’t immediately respond to tral Bank – have ramped up monetary support in recent 20 due to a favourable base eff ect and past monetary policy requests for comment. months. actions. Total’s Papua LNG is one part India’s cumulative rate cuts totalling 135 bps make it the Infl ation in August accelerated to a 10-month high but of the integrated expansion most aggressive central bank in Asia. remained well below the central bank’s medium-term tar- project planned for Exxon’s ex- The RBI’s repo rate is now at its lowest levels since get of 4% for a 13th straight month. isting PNG LNG venture. While March 2010, when it stood at 5%, following the global fi - The RBI said it expects infl ation to stay under this target Total and the government fi nal- nancial crisis. through to the early months of fi scal 2020-21. ised an agreement on the project “In our opinion, RBI as a central bank has done more The central bank said that policy “transmission has last month, a separate govern- than enough to stabilise economic settings. remained staggered and incomplete.” It noted that the ment deal with Exxon hasn’t From here onward, monetary easing may not achieve weighted average lending rate on fresh loans has fallen by progressed. Total has since said much incrementally,” said Rupa Rege-Nitsure, chief econ- just 29 bps, versus the 110 bps cut, ahead of yesterday’s an- it delayed expectations for a fi nal omist of L&T Finance Holdings. nouncement. investment decision from next She said it is now the government’s task to remove Economists expect policy transmission to improve after year until 2021. structural constraints in the economy, with the RBI sup- the RBI mandated banks to link fresh loans to an external “Total may be willing to put Pa- porting this eff ort by fostering financial stability. benchmark like the repo rate, or the rate on short-term pua on the back burner if the new All six MPC members voted in favour of a rate cut and for treasury bills since the start of October. PNG government doesn’t meet Reserve Bank of India governor Shaktikanta Das arrives for a press conference at the retaining the accommodative stance, the statement said. “The RBI is likely to continue with its campaign for its expectations,” Saul Kavonic, central bank’s headquarters in Mumbai yesterday. India’s central bank cut interest Markets wobbled after the RBI decision. more rapid transmission of the benefi ts to credit users,” an energy analyst at Credit Suisse rates for the fifth time this year yesterday, revising growth forecasts as the country’s The broader NSE Index, which was up 0.60% before the said K Joseph Thomas, research head at Emkay Wealth Group AG, said by e-mail. “This economy battles high unemployment rates and weak economic activity. policy decision, turned negative after the rate cut and was Management. may also be a tactical move from Total to pressure the PNG govern- ment into hastening negotiations” with Exxon. Coming into 2019, the venture was seen as one of the most promising among a slew of potential gas export projects be- Uniqlo takes plunge in uncertain India retail market cause of the relatively low cost of development. But disputes over how much value the country is AFP sultancy McKinsey and the Business of getting from the drilling spurred New Delhi Fashion trade publication. McKinsey a change in government that has said that the vast nation’s apparel market slowed progress and put it at risk was forecast to be worth $59.3bn in 2022, of getting passed over for invest- apanese clothing giant Uniqlo yester- making it the sixth-largest in the world. ment. day opened its fi rst store in India, one However, India is notorious for its Papua New Guinea became Jof its largest worldwide, becoming price-sensitive consumers, while ethnic an LNG exporter in 2014 when the latest global retailer to plunge into wear still infuses much of local fashion, Exxon began producing from the huge but tough developing market. particularly among women. its PNG LNG plant. The $19bn The South Asian nation, with its 1.3bn Uniqlo is attempting to address the project was the largest invest- population and a burgeoning middle- second point by including for the Indian ment in the country’s history, class, is viewed by global brands as a ma- market a “Kurta collection” created in but the deal to allow it has been jor prize but weak consumer demand has collaboration with an Indian designer. criticised by the World Bank and hit the economy in recent months. But on price, Uniqlo so far appears to others for not providing enough The Uniqlo outlet, one of more than be selling its clothing at similar levels as benefi t to the country itself. 2,000 across the world, is spread over in the United States and Australia, and The plan to add about 8 mil- 3,250 square metres (35,000 square feet) more expensive than in Malaysia. lion tons a year of LNG produc- – and almost next to global rival Swe- One signature item, a women’s ul- tion capacity is actually two den’s H&M in an upmarket mall in New tra light down vest for women, retails at projects rolled into one: Papua Delhi. “I’m not worried,” the billionaire Rs3,490 ($49.10) compared to $49.90 LNG, which is being spearhead- founder of Uniqlo’s operator Fast Retail- in the US and 149.90 ringgit ($35.80) in ed by Total with junior part- ing, Tadashi Yanai, told AFP Thursday Malaysia. ners Exxon and Oil Search Ltd., ahead of the opening, the fi rst of three “India is a highly competitive mar- will tap the Elk-Antelope fi eld planned in and around the Indian capital. ket, and a lot of global brands are already and build two new liquefaction “Fast Retailing has long wished to here, along with many successful home- trains. Meanwhile, Exxon will open stores in India, in view of the tre- grown brands,” Edelweiss Securities drill in the P’nyang fi eld and add mendous potential of a nation of 1.3bn analyst Abneesh Roy told The Print news one train to the two at PNG LNG people...(with) an average age of 27,” he website. “Uniqlo is defi nitely entering it already operates. The projects added in a speech. late, and it will not be easy.” want to move forward simulta- Uniqlo is among more than 300 in- On Friday around 500 shoppers of a neously to share some facilities ternational fashion brands expected to of ages queued up to enter the new A visitor taking a photo in the newly opened Japanese retail store Uniqlo, the company’s first Indian store, in New Delhi. and save as much as $3 billion in open stores in India in the next two years, store when it opened, with Yanai there to Japanese clothing giant Uniqlo has opened one of its largest-ever stores in India, the latest global retailer to plunge into costs, according to Oil Search. according to a November report by con- welcome them. the developing market despite the slowing economy. SoftBank’s plans for second mega-fund hit by WeWork debacle

Reuters and questions about its business model have versity and who has been closely following ard Chartered declined to comment. The Tokyo dented Son’s reputation as a savvy inves- the WeWork turmoil. Japanese institutions are mostly contributing tor and point to a big writedown by the first To be sure, there are investments in the only small amounts, sources familiar with the Vision Fund. SoftBank and the Vision Fund 80-plus companies Vision Fund has financed matter said. SoftBank Group founder and CEO Masayoshi together poured more than $10bn into the that appear to be paying off quickly. At least one financial investor is plan- Son is struggling to raise money for a second company, investing some of that at a valua- Delivery company DoorDash, for one, has ning to make loans to the fund rather than massive technology investment fund in the tion of $47bn in January. rocketed in value, at least on paper, from contribute cash. wake of the failed public off ering of off ice- But WeWork recently abandoned plans $1.4bn last March to $12.6bn in May. Japanese investment bank Nomura Hold- rental company WeWork and sliding valua- for an initial public off ering that would have SoftBank, which owns about a third of the ings Inc, which was lead underwriter for the tions of other major investments, according pegged the company’s worth at just $10bn- Vision Fund, in July reported a 62% return on IPO of SoftBank’s telecom unit, has decided to two people familiar with the situation. $12bn. If the second fund comes in well short its investment, including management and not to put money into the new fund, accord- Son is still determined to go ahead with of Son’s goal or gets scrapped it will have performance fees. ing to a source familiar with its plans. Vision Fund 2 even though some lieuten- broad implications for Silicon Valley venture Son also has a track record of big scores: Nomura declined to comment. ants have urged a delay, the two people with capitalists, entrepreneurs and Wall Street the $20mn he put into China’s Alibaba Group Saudi Arabia’s Public Investment Fund knowledge of SoftBank’s internal discussions financiers. Holdings in 2000 is now worth more than (PIF), which contributed $45bn to the first told Reuters. The first Vision Fund, which raised $97bn, $100bn, for example. Vision Fund, does not have large amounts of But it is likely to be far smaller, at least at upended the tech investing world with Most analysts rate SoftBank Group a buy fresh cash to invest until it receives payment the outset, than the $108bn that SoftBank massive bets on fast-growing but unproven and say it still has borrowing capacity, and its from a pending asset sale or proceeds from said it had lined up when it announced the companies. It was bigger than the aggregate majority-owned telecom and internet media the planned public off ering of the oil firm fund in July, these people said. amount raised by the entire US venture unit throws off healthy profits. Aramco, according to people familiar with its Major investors have yet to sign on, leaving capital industry in 2018, giving Son a massive Debt piles up finances. a $38bn pledge from publicly traded SoftBank influence over the start-up market. The Aramco off ering is long delayed and Group itself as the only large commitment, Sceptics say the troubles at WeWork and Back in July, SoftBank said a group of there is no guarantee it will go ahead even according to the sources. the poor public market performance of companies, including technology behe- next year. And the size of that pledge may itself be in money-losing companies such as Uber Tech- moths Apple Inc and Corp, as well The United Arab Emirates’ Mubadala fund doubt given some of the recent investment nologies Inc and Slack Technologies Inc will as a slew of Japanese banks, and Britain’s still intends to invest in Vision Fund 2 but setbacks it has suff ered and the lack of avail- trigger a big decline in the value of numerous Standard Chartered Plc would contribute to is seeking more say in the investments, a Masayoshi Son, chairman and chief executive off icer of SoftBank able cash on its balance sheet, according to a so-called “unicorn” startups worth more than Vision Fund 2. But it is unclear how firm those source familiar with the discussions said. Group Corp, reacts during a news conference in Tokyo. Son is Reuters analysis. a billion dollars. commitments are, and none of the corporate “Our rights to weigh in on investments struggling to raise money for a second massive technology Vision Fund and SoftBank Group declined “The radiation is spreading everywhere,” investors have a track record of making multi- are of course part of the consideration as investment fund in the wake of the failed public off ering of off ice- to comment on the progress of Vision Fund 2. said Scott Galloway, an author and one-time billion-dollar commitments to an outside we assess Vision Fund 2,” a spokesman for rental company WeWork and sliding valuations of other major The implosion in the valuation of WeWork entrepreneur who teaches at New York Uni- venture fund. Microsoft, Apple and Stand- Mubadala said. investments, according to two people familiar with the situation. Gulf Times Saturday, October 5, 2019 3 BUSINESS

Apple raising iPhone 11 output by up to 10%: Nikkei

Bloomberg after the report. An Apple spokesperson in telegraphed strong initial sales of his com- Taipei Japan declined to comment. pany’s most profitable product, spurring Apple Inc has reportedly told suppliers to expectations that demand for the iPhone 11 increase production of the iPhone 11 range will hold up despite global ma- Apple Inc has told suppliers to increase by as much as 10%. laise. The CEO told French daily Les Echos production of its latest iPhone 11 range by as Apple shares were up 1.2% at 6:24am in yesterday he foresaw a new growth cycle in much as 10% to meet stronger-than-expected New York during pre-market trading. the market. sales of the new handsets, the Nikkei Asian It is not unusual for Apple to gradually Major improvements to the iPhone’s Review reported, aff irming resilient demand ramp up orders as it gauges demand after camera, including the addition of a new for the company’s most important gadget. launch and builds up to the holiday shop- ultrawide lens for better architectural and The boost would add 7mn to 8mn units ping season. The US company has stuck tourist photos, alongside better battery to what the Cupertino, Calif-based company with a previous projection for sales of up life and improved durability may have had initially planned on, the Nikkei cited to 75mn new iPhones in the second half, resonated with consumers. And a decision anonymous sources as saying. Shares in people familiar with the matter said, asking to lower the iPhone 11’s starting price by Attendees look at iPhone 11 displayed at an Apple store in Sydney. The company is planning to increase Apple suppliers from Murata Manufacturing not to be identified discussing internal $50, to $699, may also have drawn in more production of its latest iPhone 11 range by as much as 10% to meet stronger-than-expected sales of the new handsets, Co and Alps Alpine Co in Tokyo to AAC Tech- estimates. budget-conscious consumers in a weaker the Nikkei Asian Review reported, aff irming resilient demand for the company’s most important gadget. nologies Holdings Inc in Hong Kong climbed But chief executive off icer Tim Cook has global economy. Page 5

Malaysia’s Petronas SpiceJet could take more sets up $350mn of Jet’s 737 MAX aircraft venture capital Reuters New Delhi fund ndian low-cost carrier SpiceJet Ltd may consider taking some of Reuters Ithe Boeing 737 MAX planes that Kuala Lumpur were due to be delivered to now bank- rupt Jet Airways but are still sitting in Seattle, its chairman said yesterday. alaysia’s state energy fi rm “Lessors are in touch with us for Petronas said yesterday it MAX aircraft including those. There Mhad set up a $350mn ven- is an opportunity to backfill, to make ture capital arm for industrial and up for some of the lost time,” SpiceJet energy investments. chairman Ajay Singh told Reuters in The newly launched Petro- an interview in New Delhi yesterday. nas Corporate Venture Capital SpiceJet has already agreed to take will look to invest in startups in four Jet 737 MAX planes on the ground advanced materials, specialty in India, he said. chemicals as well as those in- More remain on the ground in Seat- volved in the future of energy, tle, having not been delivered due to Petronas said in a statement. payment issues or because they were “The fund will act as a minori- produced after a global grounding of ty stakeholder in early to growth- the 737 MAX fleet in March after two stage companies,” Petronas said, fatal crashes. adding that it will look for invest- SpiceJet, India’s second-largest ments in North America, Europe airline by market share after IndiGo, and Asia Pacifi c. has more than 100 of the planes on firm order, as did Jet, but not all of The newly launched SpiceJet’s planes are ready yet. VCF will look to invest The grounding of MAX planes has in startups in advanced hurt SpiceJet’s capacity expansion materials, specialty and international plans and raised chemicals as well as those costs, Singh said. involved in the future of SpiceJet currently has 13 737 MAX energy planes grounded in India and another 8-9 are sitting ready in Seattle but As the sole manager of Malay- will be delivered only once the ban is sia’s oil and gas reserves, Petro- lifted, Singh said. nas is a signifi cant contributor Boeing has said it expects the 737 to government revenue and the MAX could return to service in the country’s largest employer. United States by the end of the year It has been looking to diversify but Singh said it could take until Janu- amid volatility in oil markets. ary before its planes start flying again This year, Petronas acquired a Sin- as the Indian regulators would also gapore-based solar energy compa- need to certify it. ny as part of a strategy to move into SpiceJet, which is talking to Boeing Ajay Singh, chairman of Indian low-cost carrier SpiceJet Ltd, speaks during an interview with Reuters in New Delhi. SpiceJet may consider taking some of the Boeing 737 renewable energy and chase high- about compensation, is also speaking MAX planes that were due to be delivered to now bankrupt Jet Airways but are still sitting in Seattle, Singh said yesterday. growth businesses to complement to Airbus SE about potential orders as its mainstay operations. Last week, a back-up plan, Singh said. have the A321 for which there is no because the company’s engineering up over 30 of its rivals former 737 NG SpiceJet has also received some of Malaysian Prime Minister Ma- He told Bloomberg last month that Boeing equivalent and we should look setup and pilots are already geared for planes, flying more passengers and Jet’s domestic and international air- hathir Mohamad said the gov- the airline was weighing an order for at it independently as well,” he said it. raising fares. port slots on a temporary basis, but ernment was considering listing 100 Airbus long-range A321 planes. yesterday. Despite the groundings, SpiceJet In August SpiceJet reported its Singh said that as far as he was con- the exploration and production “It depends on what happens with “We are evaluating it,” Singh said, has expanded rapidly, taking advan- biggest-ever quarterly profit, and its cerned they have now become perma- arm of Petronas as part of eff orts the MAX. Airbus is telling us they adding that he would prefer the MAX tage of Jet’s collapse in April to take market value has soared to $1.2bn. nent as per aviation rules. to raise money to reduce debt.

US helps Mastercard, Visa score victory in Indonesia in global lobbying effort

Reuters from the NPG has not previously been by USTR. Governments around the world Jakarta/New Delhi made public. Indonesia now expects to say regulations aimed at boosting local retain its GSP status, off icials said, though data storage help protect privacy of their negotiations are ongoing. citizens and support legal investigations. US trade off icials, at the request of card A spokesman for Indonesia’s central Financial firms, however, say such networks Mastercard and Visa, convinced bank said its role in the GSP talks was over measures are protectionist and lead to Indonesia late last year to loosen rules gov- and credit cards would not be regulated higher costs, and also weaken global fraud erning its new domestic payment network, under the new system in the near term. detection tools. according to Indonesian government and The spokesman did not comment on the Countries such as Indonesia, the world’s industry sources, and e-mails reviewed by US pressure. But Rizal Aff andi Lukman, an fourth most populous, off er massive Reuters. Indonesian deputy minister involved in the growth opportunities for companies as the The change will allow the US companies negotiations, said the decision was taken use of digital payments booms. to process credit card transactions without independently, adding that the central bank JPMorgan estimates card usage for having to partner with a local company in can’t “be steered by the US.” online spending in Indonesia will grow 39% Indonesia, the sources said. The off ice of the USTR in Washington did a year to 2021. Indonesia’s decision represented a major not respond to requests for comment. Mastercard’s recommendation that the lobbying victory for US payment compa- Mastercard and Visa did not answer extension of Indonesia’s GSP status should nies in eff orts to beat back a host of new questions from Reuters on their lobbying be contingent on changing the NPG rules regulations in Asia and elsewhere around eff orts. In a statement, Mastercard said came in an e-mail sent to a USTR off icial by data storage or the promotion of local pay- any change in the regulatory environment the company’s public policy executive in ment networks over foreign ones. in Indonesia “to support global partners Indonesia, Wilson Siahaan, on November 2. The lobbying eff ort in Indonesia was participating is a result of conversations be- “If the GSP were to be signed, it should detailed in more than 200 pages of e-mail tween the US and Indonesian governments include notes on some key open items,” ac- communications between US trade off icials as part of their ongoing negotiations”. cording to a Mastercard briefing document and executives of card companies that Visa said it “routinely engages with gov- sent by Siahaan that listed “exclusion of Reuters obtained under the US Freedom of ernments around the world to promote the credit card” among pending issues. Information Act. Mastercard credit cards are arranged for a photograph in Arlington, Virginia. US trade off icials, at the request of card value of digital payments and to advocate On November 28, Siahaan learned Indo- The e-mails, dated between April 2018 networks Mastercard and Visa, convinced Indonesia late last year to loosen rules governing its new domestic payment for open markets, free trade, and global nesia had decided to exclude credit cards and August 2019, also showed that Master- network, according to Indonesian government and industry sources. competition.” from the NPG and sent a thank you note. card lobbied the off ice of the United States USTR has long advocated for Mas- The decision is “great news and we ap- Trade Representative (USTR) to oppose The Indonesian rules would have US trade off icials made changing that nually. As a result, Indonesia’s central bank tercard, Visa and American Express to preciate your help,” he wrote in his e-mail to new data rules and local payment systems required foreign firms to process credit rule a top demand if Indonesia were to re- agreed to exclude all credit card transac- have unrestricted access to developing the USTR off icial, sending a copy to Visa. in India, Vietnam, Laos, Ukraine and Ghana. and debit card transactions onshore in tain a privileged trade status known as the tions from the NPG, the sources said. countries, particularly in China, where they Siahaan did not respond to a request for Visa was looped into several of the partnership with a domestic partner under Generalized System of Preferences (GSP), “The US side made clear the National cannot operate independently in the yuan comment. discussions, the e-mails showed. Indonesia’s payment network, known as three Indonesian off icials and two industry Payment Gateway was a main demand if currency card market. In contrast to the success in Indonesia, While American firms often lobby the US the National Payment Gateway (NPG). The sources involved in the negotiations told Indonesia wanted GSP. The US side was China’s unwillingness to grant the US companies including Mastercard and Visa administration on business issues, those decision would have hit the companies by Reuters. dead-set on this,” said one of the industry card firms licenses to operate is one of failed to convince India’s central bank to discussions usually happen behind closed reducing their earnings in Indonesia, espe- GSP gives Indonesia lower tariff s on sources. many market access issues now under relax rules that force them to store data doors and are not made public. cially on the more lucrative credit card fee. exports to the United States worth $2bn an- The decision to exclude credit cards discussion in the US-China trade talks led locally, Reuters reported last year. Gulf Times 4 Saturday, October 5, 2019 BUSINESS

‘Pakistan oil refi nery project Trade deal with US is ‘not to get $5bn Gulf investment that easy’: Indian minister

Internews Islamabad Bloomberg “Neither government said there would be a New Delhi trade deal in fi ve minutes. That was just specu- lation,” Ross said. “We do think that there’s no he United Arab Emirates (UAE) has decid- structural reason why there can’t be one pretty ed to invest $5bn in an oil refi nery project ndian Foreign Minister Subrahmanyam quickly.” Tin Pakistan by the end of 2019, Arab News Jaishankar said that a trade deal with the US Trade tensions between India and the US have reported yesterday. Iis “not that easy,” but trade ministers from been ongoing for a while now with US Presi- Talking to the newspaper, UAE ambassador both sides were trying to iron out their diff er- dent Donald Trump accusing India of charging Hamad Obaid Ibrahim Salem al-Zaabi said: “We ences. higher duty on American imports, particularly are going to launch one of the biggest invest- “It’s a fairly complicated set of issues because tariff s as high as 100% on Harley-Davidson Inc ments in a refi nery project in Hub very soon”. you are really looking at trying to clear up is- motorcycles. However, New Delhi and Wash- “It is going to be a $5bn investment between sues,” Jaishankar said yesterday, speaking at the ington have been working to sort out trade is- Mubadala Petroleum Company of Abu Dhabi, India Economic Summit organised by the World sues, including a possible withdrawal of some Pak Arab Refi nery Limited (PARCO) and OMV Economic Forum in New Delhi. “I guess if they disputes from the World Trade Organisation. (OMV Pakistan Exploration Gesellschaft),” the are taking a little time they would be justifi ed in The bilateral trade between the two countries envoy was quoted as saying. doing so.” stands close to $90bn. Al-Zaabi said the project was the result of Jaishankar’s remarks come as US Commerce There had been speculation that a trade extensive discussions between Mubadala Petro- Secretary Wilbur Ross and his Indian counter- agreement would be hammered out while Prime leum and Pakistan’s petroleum ministry along part Piyush Goyal are holding talks in the Indian Minister Narendra Modi was in the US last week with PARCO and OMV. capital. but that didn’t happen. Mike Pompeo, US Secretary of State (left), reacts beside Subrahmanyam Jaishankar, India’s The project was fi nalised during Crown Prince On Thursday Ross had said that there was no Ending trade frictions could help India boost Foreign Minister, during a news conference in New Delhi. Jaishankar said yesterday that a Sheikh Mohamed bin Zayed al-Nahyan’s Paki- structural reason a US-India trade deal could exports and cushion an economic slowdown trade deal with the US is “not that easy,” but trade ministers from both sides were trying to stan visit earlier this year. not be done soon. caused by a collapse in domestic consumption. iron out their diff erences. The discussion are ongoing on the minute details of the refi nery project, the enjoy said, adding that a delegation headed by Mubadala Petroleum chief, Musabbeh al-Kaabi, visited Analysts Pakistan and met with the chairman of board of investment chairman and petroleum minister in Philippines Sept infl ation slowest in over 3 years this regard. cut Asian Earlier this week, it was reported that at least six oil refi neries were at diff erent stages of com- Reuters firms’ 2019 pletion to ramp up crude oil refi ning capacity in Manila Pakistan by around 5%. profit According to sources, the government was off ering ‘unprecedented’ incentives to down- hilippine annual infl ation slowed more than outlook stream the sector in order to meet the rapidly expected in September because of lower food growing energy demand. Pand electricity costs, the statistics agency A senior offi cial said that as many as six said yesterday, giving the central bank room to ease Reuters projects, investment initiatives, and proposals monetary policy if needed. Bengaluru in oil refi ning sector were in pipeline to purify Last month’s headline infl ation rate of 0.9% was crude of around 1.110mn barrels of oil per day. the slowest in more than three years. It was below the 1.1% forecast in a Reuters poll Analysts have cut their earnings and was within the central bank’s 0.6% to 1.4% forecasts for Asian firms over the forecast for the month. past month due to concerns over It brought the average infl ation in the nine US-China trade tariff s and slowing High tax burden months to September to 2.8%, well inside the cen- global economic growth, Refinitiv tral bank’s 2%-4% target for the year. data shows. leads to closure Infl ation peaked at a near-decade high of 6.7% in Over the past 30 days, analysts September and October last year. have cut 2019 net income of industrial Overall prices have since eased, allowing the forecasts for Asian firms by an central bank to start reversing some of last year’s average of 0.4%, the data shows. units in Pakistan 175-basis points’ worth of interest rate increases. Japan has led the earnings Last week, the central bank slashed its bench- downgrades in the region, with a mark interest rate for a third time this year to sup- 1.4% cut, followed by Australia and Internews port a slowing economy. Vietnam. “We have downgraded Islamabad It also reduced banks’ reserve requirement ratio Japanese equities to underweight. by 100 basis points to boost credit growth. We believe they are particularly “Declining infl ation trend would provide in- vulnerable to a Chinese slowdown Textile exporters have lamented that they creased fl exibility in terms of greater leeway for any with a Bank of Japan that is still have been burdened with several taxes furthering easing of local monetary policy,” said accommodative but policy-con- including 17% general sales tax (GST) due to Michael Ricafort, economist at Rizal Commercial strained,” said BlackRock in a note which the textile industry of Faisalabad has Banking Corp. this week. mostly been shut down. Bangko Sentral ng Pilipinas Governor Benjamin “Other challenges include slow- During a meeting of the Senate Standing Diokno said on Tuesday he remained confi dent 2019 ing global growth and an upcom- Committee on Textile, the exporters criticised growth would reach 6%, the lower end of its 6-7% ing consumption tax increase.” business policies of the government and forecast, but acknowledged it might just miss the On the other hand, analysts have maintained that it had made the refund claim mark. raised this year’s earnings esti- form extremely diff icult so that no one could A vendor arranges eggs for sale at a market in Manila. Philippine annual inflation slowed more than He declined to say whether further easing would mates for Taiwanese and Indian fill it properly. expected in September because of lower food and electricity costs, the statistics agency said happen in 2019, saying it would depend on infl ation firm over the past month. The committee met with Senator Mirza yesterday, giving the central bank room to ease monetary policy if needed. rates which are currently “under control”. Muhammad Afridi in the chair. During the meeting, Senator Shibli Faraz revealed that imports of information technology (IT) products were being subjected to under-invoicing, which was paving the way for money laundering. Slight retreat in gold prices adds to festive lure in India He suggested that it should be made mandatory for the importers of IT accessories to furnish original documents of Reuters their shipments. “About $400mn-500mn is Bengaluru/Mumbai being laundered under the garb of IT imports through under-invoicing while the FBR is facing an annual loss of Rs8bn-Rs9bn,” he dip in prices earlier this week fuelled an said. uptick in physical gold demand in Sin- FBR off icials explained that the government Agapore and India, with activity in the had fixed benchmark prices for certain Indian market also gathering pace ahead of key computer accessories while benchmarks for festivals. other products would be announced soon. However, overall activity was muted due to They maintained that about 20 to 25 the golden week holiday in top bullion con- import products, other than IT accessories, sumer China. were reportedly being under-invoiced and In Singapore, sellers charged premiums be- investigations were under way. tween 50 and 70 an ounce over the benchmark, They pointed out that these problems versus 50-80 cents last week. stemmed from transit trade and they had Global benchmark spot gold prices fell to requested the customs authorities to address their lowest in nearly two months, at $1,458.50, such issues. early in the week, but have since recovered During the meeting, the exporters criticised above the $1,500 level. government authorities, especially the “Demand was high earlier this week as pric- refund payment system. es went down briefl y below the $1,500 mark. Present in the meeting, Pakistan Apparel We believe this psychological benchmark Forum chairman Javed Bilwani pointed will continue to aff ect investors’ decisions on out that the government had claimed that what the right time for buying is,” said Joshua it would make swift refund payments like Rotbart, managing partner at J Rotbart & Co in Bangladesh after the end of the zero-rated Hong Kong. system but the amount was not disbursed Traders also hoped demand would increase yet. in the fi nal quarter as India gears up for festi- “We were told that refunds will be released vals such as Diwali and Dussehra, when buying within 72 hours,” he said. “Now, we are being gold is considered auspicious. given a time period of 25 days for collecting “Generally, during this period, jewellers take refunds.” time to increase purchases to have more variety He added that as a consequence, the in jewellery,” said Brian Lan, managing director exporters faced shortage of capital and many at Singapore dealer GoldSilver. were closing down their business due to lack The Indian market was also helped by a dip of funds. in domestic prices with gold futures trading The FBR off icials claimed that they had around Rs38,200 per 10 grams yesterday after disbursed Rs260mn out of Rs1bn worth of falling to Rs36,771 on Wednesday, the lowest refund claims. since August 13. Committee chairman Afridi ordered FBR The week started with aggressive buying off icials to address genuine concerns of the from jewellers as prices corrected, said Chanda A saleswoman picks gold necklaces to show to a customer inside a jewellery showroom in Kochi. India’s gold imports plunged 68% year-on-year in traders and present their recommendations Venkatesh, managing director of CapsGold, a September to their lowest in over three years as record domestic prices curbed retail buying, a government source said yesterday. in a meeting on October 18. bullion merchant in the southern city of Hy- On the issue of under-invoicing, he was of derabad. The domestic price includes a 12.5% import years as record domestic prices curbed retail “After the mainland China market opens, we the view that smuggling was on the rise due “But from Thursday again, demand started tax and 3% sales tax. buying, a government source said. could see some good demand,” said Peter Fung, to the Afghan Transit Trade arrangement. faltering due to a rebound in prices.” Retail purchases could rise next week due to In Hong Kong, gold sellers were charging head of dealing at Wing Fung Precious Metals. “Elements in Afghanistan are making use Dealers off ered discounts of up to $21 an Dussehra, said a Mumbai-based dealer with a premiums of $0.30-$0.50 cents versus last In Japan, gold was sold at par with the of the transit trade to tarnish the image of ounce over offi cial domestic prices yesterday, bullion importing bank. week’s 50 cents to $1 range, with drawn out benchmark, a Tokyo-based trader said, adding Pakistan,” he said. up from a discount of $10 on Wednesday and India’s gold imports plunged 68% year-on- protests in the fi nancial hub taking their toll on a twice-delayed increase in sales tax has also about $40 last week. year in September to their lowest in over three jewellery demand, dealers said. deterred gold buyers. Gulf Times Saturday, October 5, 2019 5 BUSINESS

Officials push Facebook for way to peek at encrypted

AFP The request, addressed to Facebook chief Mark ployees, Zuckerberg said the company recognised munications and build in surveillance. “Strong tions, the CDT argued. The CLOUD Act Agreement San Francisco Zuckerberg, raises anew the conflict between tech- the challenge in balancing privacy with fighting encryption and end-to-end security are bedrock will allow British and US law enforcement agencies nology firms intent on protecting user privacy by crimes such as child exploitation and terrorism, and technologies that keep information safe online,” to demand electronic data regarding serious crimes scrambling messages with encryption, and govern- was working with authorities to get it right. said CDT senior technologist Hannah Quay-de la directly from tech companies based in the other Off icials are calling on Facebook not to use encryp- ment agencies contending that doing so would let “Having the availability to look at the content is a Vallee. country, according to a Department of Justice tion in its messaging services that does not provide wrongdoers hide their schemes. useful signal, and when you lose that you are fight- “These technologies protect billions of communica- statement. authorities a way to see what is being sent. The leading social network already encrypts What- ing that battle with at least a hand tied behind your tions every day, from the sensitive correspondence The agreement will allow “more eff icient and The request was made in a letter signed by US At- sApp messages from end-to-end — meaning only back and you hope there is a lot of good stuff you of victims of domestic violence to businesses’ finan- eff ective access to data needed for quick-moving torney General William Barr, British home secretary the sender and recipient can read the message, can do with your other hand,” Zuckerberg said. cial records to our private medical information.” investigations,” Barr said in the statement. Priti Patel and Australian minister for home aff airs which is saved in encrypted form — and is working He felt the scale was still tipped toward encryption, Facebook early this year said it was trying to get its “Only by addressing the problem of timely access Peter Dutton. to extend the technology to other apps in its family, which can help protect journalists, political protest- messaging apps to be friends, allowing encrypted to electronic evidence of crime committed in one “We are writing to request that Facebook does not including Messenger. ers, and others. missives be exchanged no matter which of its country that is stored in another, can we hope to proceed with its plan to implement end-to-end End-to-end encryption protects the messages Privacy has been a sore point for Facebook, and services are used. keep pace with twenty-first century threats,” he encryption across its messaging services... without of over a billion people every day, according to users have been clamouring for encryption of mes- The California-based social network is behind free, added. including a means for lawful access to the content Facebook. sages, according to Zuckerberg. stand-alone smartphone apps Instagram, Messen- Facebook interpreted the CLOUD Act to allow tech- of communications to protect our citizens,” said “It is increasingly used across the communications Clues such as patterns of behaviour and connec- ger and WhatsApp. nology companies to enable users to have private a copy of the letter obtained by AFP and dated industry and in many other important sectors of tions between accounts can be used as signals of Each service is popular, but users have to be in the online conversations and be required to provide October 4. the economy,” Facebook said in response to an AFP illicit behaviour even if data in messages can’t be same application to exchange messages. available information to valid legal requests — not The letter called on Facebook and other compa- query. seen, he noted. The joint letter to Facebook, paired with a freshly build backdoors into encrypted systems. nies to make sure messaging systems were not so “We strongly oppose government attempts to build The nonprofit Centre for Democracy and Tech- signed “CLOUD” data sharing agreement between “Creating a law that would mandate weaker and well-encrypted that law enforcement couldn’t see backdoors because they would undermine the nology (CDT), based in Washington, contended Britain and the US, should set off “red flags” for less secure technology is like mandating crumbling “content in a readable and usable format” when privacy and security of people everywhere.” that governments signing the letter were using citizens in both countries who care about govern- sidewalks to prevent criminals from escaping,” said needed. During a live-streamed question session with em- scare tactics to weaken security of global com- ments monitoring and sharing their communica- Quay-de la Vallee.

Twin-screen Duo puts Microsoft back in smartphone game

AFP San Francisco

Microsoft on Wednesday unveiled new devices with twin-screens that open like books, including a notepad-sized version that will put it back in the smartphone game next year. Surface Duo was touted as the first device in the lineup to fit into a pants pocket, with two “paper-thin” 5.6-inch screens that unfold and work in harmony with a specially tailored Android . Described as a “new category” of device, Duo can make telephone calls and run applications designed for - backed Android mobile , which powers most of the world’s smartphones. “You are going to talk about it as a phone, and I get that,” Microsoft chief product off icer said at a Surface event in New York of Duo, which will be available late next year. “You can text; you can write; you can do what you want, make no mistake this product is a Surface.” The Duo and a separate foldable Neo tablet came as a surprise at a New York event where the tech titan unveiled its latest lineup of Surface computing devices. Microsoft years earlier surrendered the smartphone market to Attendees sit during a news conference at the Electronics Co exhibition area during a press preview day at the IFA consumer electronics show in Berlin, Germany, operating systems from Apple and Google after its own line of on September 5. Samsung is likely to flag a 60% decline in July-September operating profit to 7tn won ($5.8bn) on Tuesday, according to Refinitiv SmartEstimate, based on Windows-powered handsets failed to gain traction. estimates from 28 analysts. While it has been emphasising its cloud computing and other business services, Microsoft still draws considerable revenue from Windows, the software that powers the vast majority of PCs. Smartphones and tablets tuned to Microsoft’s subscription- based, cloud-hosted applications work into the company’s successful shift away from relying on packaged software. Microsoft has achieved strong growth from its cloud services and revenues from its gaming business, Bing search, Samsung sees recovery Surface tablets and PCs, as well as the professional social network LinkedIn acquired in 2016. As its Windows business struggled to gain traction, Microsoft acquired the device business of Finland- based in 2014 for some $7.2 as part of a reboot eff ort. But that failed and Microsoft eventually threw in the towel on its operating system which failed to get a as chip prices stabilise foothold in the sector dominated by Apple’s iOS and Google’s Android. July-Sept profit likely down analysts expect to see earnings “There’s growing anticipation lyst at Daishin Securities, said. Mobile Services, analysts said. “I believe the third time’s a charm for Microsoft and 60% — analysts estimate; growth next year as chip prices about Samsung and the semi- US chipmaker Micron Tech- Meanwhile, Samsung’s newly smartphones as conditions for a Surface smartphone’s hopes for recovery growing turn around. conductor market. nology Inc gave a bleak profi t launched Note series with fast success have turned in favour of the company,” said analyst as chip price falls slow; “The chip market is in the It’s not so bad when you look outlook last week, citing eco- 5G connection is out-selling its Patrick Moorhead of Moor Insights & Strategy. momentum building on process of recovery as the inven- at chip prices and demand,” said nomic and trade uncertainty. predecessors, market tracker “The timing is right, too, as it’ll take a new and radical foldable Samsung’s mobile business tory level is falling on the supply a Seoul-based fund manager In the mobile business, which Counterpoint Research said. design to wake buyers from their ‘good enough’ slumber.” side,” said Avril Wu, an analyst at who owns Samsung shares. accounted for about 24% of to- Samsung has also released Microsoft argued that building on the Android mobile Reuters tech researcher TrendForce. He declined to be named as he tal operating profi t in the second its fi rst foldable smartphone in operating system provides a good foundation for Duo and Seoul Prices for DRAM chips, which was not authorised to speak to quarter, Samsung is benefi ting South Korea and United States, can help replace larger devices such as tablets and laptops in help devices perform multiple the media. from US sanctions against Chi- giving “good momentum” de- many cases. tasks, are forecast to fall by a While things are looking up nese smartphone and network spite its small contribution to “We wanted to build experiences that span all devices in our amsung Electronics Co Ltd low-single digit percentage in for Samsung in terms of chip equipment rival Tech- income, said Eo Kyu-jin, an ana- lives,” Microsoft chief executive said at the is likely to post a fourth the fi rst quarter of 2020, com- prices, analysts remain con- nologies. lyst at DB Financial Investment. Surface event. Sconsecutive quarter of pared to the 20%-25% drop dur- cerned about the impact of the Samsung’s share of the Eu- In search of growth, Samsung At the event on Wednesday, the US technology titan unveiled declining profi t when it reports ing the same period this year, US-China trade war on major ropean mobile market leapt to is pouring resources into its tel- a Neo dual-screen, foldable version of its full Surface tablet, preliminary earnings next week, TrendForce says. exporters like South Korea’s tech a fi ve-year high of more than ecom network equipment busi- which like the Duo will be release late next year. though investors will be hoping Samsung is likely to fl ag a 60% giants. 40% in the second quarter, while ness just as Huawei is getting Microsoft also unveiled new Surface laptops and earbuds the worst has passed with chip decline in July-September oper- “It is diffi cult to quantify the Huawei’s slipped below 20%, locked out of such contracts due to hit the market in time for the year-end holiday shopping prices showing signs of recovery. ating profi t to 7tn won ($5.8bn) damage caused by the trade war, according to data from research to security concerns. season this year. Falling semiconductor prices on Tuesday, according to Ref- but certainly there has been con- fi rm Canalys. Samsung said on Monday it “All in all, this was a huge event for Microsoft with new form and the drawn-out US-China initiv SmartEstimate, based on servative investment and spend- Shoppers will be leery of had inked a deal to supply fi fth- factors, new use cases, and processor choices,” Moorhead trade war have bitten into prof- estimates from 28 analysts. ing by Samsung’s server and buying Huawei’s new fl agship generation network equipment said. its at the world’s top memory Chips bring in over half of mobile chip clients due to the handset if the US restrictions to Japan’s No 2 telco fi rm KDDI chip and smartphone maker but Samsung’s profi t. trade war,” Lee Su-bin, an ana- prevent it from carrying Google Corp. Apple now has the best smartphone cameras — on iPhone 11 Pro

Bloomberg triple-camera system is ahead of the pack in up despite global trade ructions and stiff en- included in the box with the new Pro Los Angeles switching smoothly between lenses when ing Chinese competition. iPhones (though not with the iPhone zooming in and out, keeping exposure and Most impressive among Apple’s photo up- 11 model), and Apple has also embraced image quality consistent. That’s especially grades is the new night mode, which takes the gesture-typing popular on Android It’s been a while but, with the iPhone 11 Pro, helpful in video, where the iPhone 11 Pro two to three seconds to capture a burst of devices with its iOS 13 keyboard. Apple Inc can once more claim the indus- extends Apple’s established lead as the images and then combines them into one. The fluidity of Apple’s interface and try’s most capable smartphone cameras. industry’s best mobile video camera. It works just like Google’s excellent Night animations remains unrivalled, aided by Apple’s priciest mobile gadget represents It’s part of the California giant’s new ap- Sight on devices, except Apple’s solu- an upgraded A13 processor, which will the culmination of a strategic rather than proach of selling services and industry- tion is simpler as it kicks in automatically let Apple build more augmented-reality hardware redesign — one that places leading enhancements to a loyal fan base. when needed. Apple’s night photo quality applications while helping establish the focus squarely on a device’s innards. Faced with a stagnating smartphone matches or surpasses rival systems includ- 4K video recording as the new iPhone From the front, the Pro looks much like market and a user base happy with its ing Google’s. That means the iPhone’s standard. There’s still occasional slug- the 2017 iPhone X. But flip it around and existing devices, Apple this year stopped camera is again top of its class, turning a gishness with navigation, which suggests you’ll find the best camera system Apple’s reporting product sales numbers and point of weakness over the past few years next year’s iPhones might benefit from a ever devised. Use it for a while and you’ll launched numerous initiatives to augment into a strength. But it’s no slouch in other greater memory allowance. experience the best battery life too. its growing portfolio. Apple Card got it into key areas, either. The iPhone 11 Pro shows off excellent The triple-camera system can switch banking alongside Goldman Sachs Group The new iPhone’s night photos are a huge exposure judgment even in challeng- smoothly between lenses when zooming Inc, Apple TV+ entered it into the stream- leap forward, producing faithful colour ing lighting. It boosts shadows and reins An advert for the iPhone 11 Pro smartphone is displayed inside the Regent Street in and out, keeping exposure and image ing wars against the likes of Netflix Inc, and impressive dynamic range. The in highlights just enough to make for a Apple store during a product launch event in London on September 20. The quality consistent. and Apple Arcade turned it into a serious ultrawide lens also allows the capture of detailed image without aff ecting the mood iPhone 11 Pro’s triple-camera system can switch smoothly between lenses when With what Phil Schiller dubbed the “first games publisher. architectural photos that would otherwise of the shot. zooming in and out, keeping exposure and image quality consistent. iPhone good enough to be called Pro,” Apple Apple appears intent on reclaiming the mo- be impossible. Apple doesn’t strictly need to win any spec has mostly matched the specifications of bile photography lead it lost when Google’s The battery life of both iPhone 11 Pro mod- or performance contest. Because many the smartphone every year with cutting- That being the case, the lack of fifth-gen- Android rivals like Pixel was released three years prior — be- els is superb, giving the user confidence users feel locked in to their chosen ecosys- edge tech like bezel-less displays, pop-up eration networking in this year’s iPhone Co and Huawei Technologies Co, which cause the camera is critical to any device, it will last through a busy day without tems, it’s suff icient for Apple to demon- cameras or so-called waterfall edges that means Apple will miss out on a major up- have had multi-camera systems for years. and the latest iPhones need an edge. That’s recourse to a charger — which couldn’t strate that its best iPhones are among the turn the sides of the phone into display. grade cycle in China next year. Archrivals But it’s also taken a step further through true even if you buy into expectations in be said of their predecessors, the iPhone leaders. That has historically allowed the Apple has the luxury of choosing which Samsung and Huawei already have 5G superior software implementation. Apple’s some corners that iPhone demand will hold XS and XS Max. A fast charger is finally company to bypass the rush to reinvent new tech to adopt and when. phones on the market. Gulf Times 6 Saturday, October 5, 2019 BUSINESS

How a no-deal Brexit may become a problem for the world economy

Bloomberg hit equivalent to 10%-30% of what the UK bial straw that breaks the camel’s back for made a lot worse if a messy departure “Our estimates suggest that for every 1% and the US, could have a bigger spillover Frankfurt suff ers. That’s potentially the diff erence global sentiment. That could kickstart a adds to the already elevated levels of less UK GDP, euro-area GDP will be down for the rest of the world, which is already between slowdown and outright reces- downward spiral in markets. uncertainty that have been created by the by 0.2% to 0.25%,” Klaus Baader, global suff ering from the trade war between the sion. “This is a very big issue for the globe,” trade war,” said Dan Hanson of Bloomberg. chief economist at Societe Generale, said two biggest economies. If Britain crashes out of the European “The consequences of a no-deal Brexit said Tom di Galoma, managing director A no-deal Brexit is a “catastrophic type in a Bloomberg interview on Tuesday. “A “It’s another piece of uncertainty,” said Union without a transition pact, the knock- would be very severe for the UK. I’m afraid, of government trading and strategy at risk” that would spark a rush to safer really deep recession in the UK could very Thomas Graff , head of fixed income at on eff ects would undermine an already but also for each of our EU member Seaport Global Holdings LLC, a US-based assets such as German bunds and US much push the euro area into recession.” Brown Advisory, which manages $6.2bn in fragile global economy. states,” former Italian Prime Minister investment bank and advisory firm. “It will Treasuries, di Galoma said. “There is a ECB policy maker Olli Rehn said last assets. “Uncertainty in general is already The 2016 vote to leave inflicted an im- Mario Monti told Bloomberg Television end up being a huge-risk off trade. There huge stall in global growth, mostly on the month that the impact on Europe would weighing on confidence at companies in mediate confidence shock that quickly this week. are a lot of hot spots in the world and back of US-China trade issues but Brexit is be “unevenly spread: Ireland would suff er the US. And if companies stop spending on dissipated from global markets, but the As for elsewhere, New York University Brexit is one of them.” adding to it.” the most, and then countries that export a capex as they want to wait and see regard- worst-case scenario of a no-deal Brexit Professor Nouriel Roubini wrote this week A sure sign of concern over global growth The UK is currently scheduled to depart lot to the UK.” ing Brexit, that’s enough to put us into a is guaranteed to damage the UK, with that “a blowup over Brexit might not by can be found in the benchmark 10-year the bloc at the end of October, and Prime Part of the problem for Europe is that recession or at least a further slowdown.” Bloomberg Economics predicting it would itself cause a global recession, but it would Treasury yield. It’s hovering just above Minister Boris Johnson has promised to the ECB has already used up much of its Those wider consequences are currently tip the economy into a recession. certainly trigger a European one, which 1.5%, down from 2.62% at the start of the stick to that deadline with or without a policy ammunition in fighting the latest being overlooked outside of Europe, ac- The question is how much pain would be would then spill over to other economies.” year and not far from a record low of 1.32% divorce agreement. slowdown in the euro area, leaving it cording to SocGen’s Baader. transmitted elsewhere at a time when the Goldman Sachs International CEO Richard reached in 2016. The Bank of England’s latest assessment with little firepower if Brexit sparks more “The uncertainty is a problem for every- US-China trade war has already helped Gnodde says central banks to act in case “Sketching out how a no-deal Brexit could of the “worst-case no-deal no-transition serious turmoil. Outgoing President Mario body,” he said. “It’s in part seen as a bit of plunge global manufacturing into a slump. of no-deal Brexit. impact the world economy isn’t hard: the scenario” is for a drop in gross domestic Draghi noted last month that the number a sideshow — which it isn’t.” If a no-deal The second-biggest victim would be the Another risk is that, after being buff eted shock in the UK hits the ailing European product of 5.5% from peak to trough. That of dangers faced by the 19-nation region, Brexit causes a euro-area recession “then euro-area, with the European Central by months of trade tension and political economy hard and the impact reverber- shows the magnitude of the damage that including a no-deal Brexit, have gone up. that really becomes a global issue,” he Bank estimating the region would feel a uncertainty, a no-deal Brexit is the prover- ates round the globe. Things could be could be caused. Germany, a key trading partner of China said.

WeWork deal in Cash crunch hangs over Amsterdam at Waymo-Uber engineer’s risk as German landlord wavers

Bloomberg after Adam Neumann stepped New York down as chief executive offi cer. criminal defence The company, until recently one of the most valuable US German asset manager startups, is on course to run out Bloomberg chunk” of that sum is in various has expressed interest of cash to fund its operations California legal retainers. He didn’t elabo- Ain ditching WeWork as unless it radically cuts costs in rate. The remainder of his invest- a potential tenant in an offi ce the next few months or raises ments are largely in real-estate building in Amsterdam, ac- substantial new capital. nthony Levandowski, and “there is zero chance of being cording to people with knowl- That’s prompted WeWork who has hit the kind of able to liquidate that in any sort edge of the matter. to pull back on some deals, in- Apaydays that give Silicon of short period,” Ramsey said. Union Investment, owned cluding one to rent space in Valley its reputation for jackpot Brandy Bergman, a spokes- by Germany’s DZ Bank AG, is a Dublin offi ce block, and to wealth and excess, is fi guring out woman for Levandowski, declined weighing whether to cancel a moderate its expansion plans. how to pay the lawyers he’s lean- to comment. Ehrlich and Ramsey deal to lease space to WeWork’s In a meeting with employees on ing on to keep him out of prison. also declined to comment. parent We Co in the 5 Keizers Thursday, new co-chief execu- Charged with stealing trade Prosecutors, for a diff erent complex in favour of an alter- tive offi cers Artie Minson and secrets from Google before he reason, also say that the $120mn native tenant, said the people, Sebastian Gunningham and co- defected to Uber Technologies isn’t what it seems. Uber has who asked not to be identifi ed founder Miguel McKelvey said Inc, the engineer has denied disclosed that an arbitration because the talks are private. that cost-cutting eff orts would wrongdoing and is due to tell a panel this year issued an interim No decision has been made and include layoff s, according to at- federal judge who his lawyers ruling against Levandowski that Union Investment could still tendees. will be. That’s taken longer and would require him to pay Google lease the space to WeWork, they At the same time, some in- proved more complicated than $127mn. The dispute essentially said. vestors have withdrawn from might be expected for a pioneer amounts to Google trying to re- Representatives of Union In- negotiations to buy buildings of autonomous driving who sold claim the bonus it paid him on vestment and WeWork declined where WeWork accounts for startups to Google and later col- grounds that he broke a promise to comment. a large chunk of the rent. For lected a $120mn bonus from the not to poach employees. Months of turmoil at WeWork example, Sidra Capital pulled Alphabet Inc unit before he quit. Prosecutor Katherine L. came to a head in recent weeks out of a £90mn ($112mn) deal According to his lawyers, Wawrzyniak voiced concern at when the company scrapped a to purchase a London building much of that money is now tied an August hearing that with his planned initial public off ering leased to WeWork. up in real estate. Anthony Levandowski, former Uber Technologies Inc engineer (left) and attorney Miles Ehrlich exit vast wealth and dual citizenship “I know Mr Levandowski is federal court in San Jose, California, on August 27. Charged with stealing trade secrets from Google in France, Levandowski might at working as hard as possible to before he defected to Uber Technologies Inc, the engineer has denied wrongdoing and is due to tell some point try to charter a pri- make funds liquid,” his lawyer, a federal judge who his lawyers will be. vate plane and fl ee. Blackstone drops property Miles Ehrlich, told US District Wawrzyniak told Cousins that Judge William Alsup last week, for lidar technology that helps au- good reason to be concerned “The $120mn is not $120mn,” the arbitration award might give deal as case heads to court explaining why the engineer tonomous vehicles see their sur- about the engineer’s liquidity. Ramsey said in court, as he ex- Levandowski “incentive to dis- hasn’t paid an up-front retain- roundings, before he abruptly quit The two are top-shelf lawyers plained how the bonus paid by guise his assets.” She said that er to line up the lawyer’s fi rm Waymo in January 2016. who run a small, eight-person Google has boiled down to a net while the government doesn’t Bloomberg for the duration of the case. A The engineer remains free on fi rm in Berkeley, California. Le- worth of $72mn after taxes and have “great visibility” into the en- Copenhagen hearing on the matter that was $2mn bail while he awaits his vandowski’s defence in a full- a divorce. “It’s $120mn pretax, gineer’s fi nances, it was clear that scheduled for October 2 was trial. He faces as long as a decade blown trial could cost him as and before the child support set- he worked for several years with pushed back to October 16 at Le- in prison and a fi ne of as much much as $5mn, and double that tlement,” he said. “a sophisticated lawyer and had Blackstone Group Inc, which is facing criticism from Denmark’s vandowski’s request. as $250,000 if he’s convicted of if he went to a large corporate “Yeah, they say a hundred the ability to create a lot of diff er- government over its real estate deals, says it’s pulling out of two Levandowski’s criminal in- any of the theft charges in his fi rm, experts said. million dollars doesn’t go as far ent corporate entities and struc- housing developments in Copenhagen after residents’ opposition dictment mirrors a high-profi le 33-count indictment. The gov- Ramsey cited Levandowski’s as it used to,” Magistrate Judge tures.” While the arbitration isn’t landed the deal in court. lawsuit brought by Alphabet’s ernment is also seeking forfei- “lack of liquidity” about a month Nathanael M. Cousins quipped, fully resolved, Levandowski has The New York-based investment company in December bought driverless-technology unit Way- ture of any proceeds “obtained ago while addressing the judge a response that drew a smile of told prosecutors he may be on two buildings from a building association, but renters of the mo against Uber that settled last directly or indirectly” from the who handled the engineer’s bail. appreciation from Levandowski. the hook for the sum. Uber in- Frederiksberg Boligfond contend that they should have been year in the middle of trial. While alleged off ences. While trying to fend off a push by Ramsey said that after post- demnifi ed Levandowski as part off ered the property first and are fighting their landlord in court. Levandowski wasn’t a defendant Despite Ehrlich serving as Le- prosecutors to increase the bail ing $300,000 in cash for his of its acquisition of one of his Due to a potentially lengthy legal dispute, Blackstone said in a in that case, prosecutors allege vandowski’s lawyer during Way- to $10mn, the lawyer argued that bail, Levandowski has $1.3mn in startups, and has disclosed that statement on Friday it’s agreed with the association to terminate that he stole thousands of propri- mo’s civil case, experts said he Levandowski’s wealth isn’t all cash and securities that could be it could be responsible for “some the sales agreement. etary fi les, including the designs and partner Ismail Ramsey have that it seems. easily sold, but that even a “big or all” of the payment to Google. For billionaire Glenn Dubin, a rough run keeps getting rougher

Bloomberg bank executive. Yet as the world has since allegations speaks for itself,” said a spokes- people with knowledge of the returns. In and Frequency Therapeutics, and is also remaining portfolio manager who has New York learned, the Dubin-Epstein connection woman for the couple. June, Engineers Gate pitched investors a seed investor in Commodore Capital, a been at Engineers Gate since inception. He went back even further: over the years The allegation, made in a sworn deposi- at a high-profile Goldman Sachs event at biopharma health-care hedge fund. He’s has one of the largest portfolios at the firm Epstein collected an astonishing number tion, was from a 2015 civil defamation case Yankee Stadium. The annual gathering, also the lead shareholder and co-chairman and was named chief architect in mid-2017. These are uneasy times for hedge fund of famous, rich and powerful acquaint- that was later settled and in which neither a fixture on Wall Street’s calendar, is akin of the trading house Castleton Commodi- The firm now has 14 portfolio managers. billionaire Glenn Dubin. ances, including Dubin and his wife, Eva. of the Dubins was a defendant. He was one to hedge fund speed-dating: prospective ties International. The Dubins, for their part, are still navigat- His latest investment firm, the $1bn Engi- She dated Epstein in the early 1980s, and of a number of high-profile men, including clients move from one short presentation Yet his big bet is Engineers Gate. Dubin set ing the Epstein aff air. Friends have com- neers Gate, has struggled to keep up with the couple’s children called him uncle. the UK’s Prince Andrew and law professor to another, sizing up the funds and their out to apply his multi-manager approach municated support privately. Few have the market since its founding in 2014. They kept up a friendship even after Alan Dershowitz, similarly accused. Both strategies. to computer-driven strategies. The idea been willing to speak up publicly. Then in August, a bombshell hit: the Epstein was first accused of preying on have also denied the accusations. Engineers Gate, however, shied away from was to build a platform that would man- The couple, prominent figures on the New money manager and his wife were very young women. Still, the taint lingers. A quick Google providing key details, including specific age Dubin’s money and that of a select York’s social scene and charity circuit, publicly drawn into the scandal surround- The day before Epstein hanged himself search of “Glenn Dubin” yields page after performance data, according to a person group of institutions. have maintained their seats on various ing Jeff rey Epstein. in his Manhattan jail cell, allegations page of media reports about Epstein. who attended the presentation. Prospec- Building a quant fund can take at least boards. Glenn Dubin founded one of New Now, a toxic mix of lacklustre invest- involving Glenn Dubin from a previously And so Dubin is coping with a tabloid-style tive clients were required to return docu- five years and tens of millions of dollars York’s most notable Wall Street philan- ment returns, a restive key client and sealed deposition hit the headlines. The distraction, while trying to raise as much ments before leaving the room. Dubin’s of investment. The most successful ones, thropies, the Robin Hood Foundation, with unwanted notoriety has left Dubin most startling: a woman who said she had as $500mn from a couple of investors for team met with clients at a similar Morgan such as Renaissance Technologies, Two fellow hedge-fund billionaire Paul Tudor working to contain the damage — at the been Epstein’s “sex slave” while a teenager Engineers Gate. Stanley event in mid-September. Sigma Investments, and D E Shaw & Co, Jones. Robin Hood, in a statement, said it very moment he’s trying to win over claimed she’d been forced into an encoun- Even before the Dubins were publicly One big client is already disappointed. The were founded by people with PhDs in values all 40 of its trustees; it declined to new investors, people familiar with the ter with Dubin. drawn into the Epstein scandal, questions Canada Pension Plan Investment Board, mathematics or computer science. Dubin comment on Dubin. matter say. The Dubins said they were horrified. They were hovering around the performance of one of just five investors, has grown graduated with a degree in economics. Meantime, Mount Sinai Health System, Engineers Gate was to be a rousing encore promptly denounced the allegations as Dubin’s young firm, which takes its name frustrated with the fund’s low returns and Engineers Gate has suff ered its fair share where the Dubins are both trustees and to Dubin’s wildly lucrative run at High- “demonstrably false.” To prove it, their law- from the ornate stone entrance to New is scrutinising its investment, according to of growing pains. where Eva Dubin founded the Dubin bridge Capital Management. yers marshalled documentation ranging York’s Central Park at East 90th Street. people familiar with the matter. Matt Cushman, one of the original four Breast Center, praised the couple for their Sensing big financial institutions would from flight records to credit card receipts. Engineers Gate has made money every The Canadian pension fund declined to portfolio managers, left in 2017 after trying generosity and said it would “monitor the soon start investing in hedge funds They provided their evidence to business year since its founding in 2014, accord- comment. to build an equity market-making busi- situation as it unfolds.” directly, Dubin, 62, founded Highbridge in associates and boards. Bloomberg News ing to a person familiar with the firm. The Engineers Gate isn’t Dubin’s only game. ness that was later abandoned because it So, too, will current and potential Engi- 1992. A dozen years later, he sold a major- also reviewed records provided by the fund has even generated double-digit After exiting Highbridge in 2013, he couldn’t scale up. Another early employee, neers Gate investors. ity stake to JPMorgan Chase & Co. The Dubins’ lawyers. returns consistently, but that’s before formed a family off ice that now occupies Ricky Shi, jumped to rival Schonfeld Strate- “For the Dubins, and anyone else who has price: more than $1.3bn. “Glenn and Eva Dubin categorically accounting for fees and expenses. After a floor in Manhattan’s sleek new Hudson gic Advisors earlier this year. He had been had their name tied to Epstein, it has got That deal, it turned out, involved none reject the allegations against them in the stripping out these costs — and building a Yards. His business interests include building a team of more junior quants for to be a period of excruciating anxiety,” other than Epstein, who was paid $15mn recently unsealed court documents, and quant strategy is expensive — annualised venture capital and biotech. He has stakes Dubin, who are still there. said Eric Dezenhall, a crisis-management for his role introducing Dubin to a key the evidence they provided refuting the performance has been 5%, according to in two small companies, C4 Therapeutics A key figure is Stephen Owen, the only adviser. Gulf Times Saturday, October 5, 2019 7 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 26,428.11 +227.07 Apple Inc 225.84 2.27 3,321,054 S&P 500 Index 2,935.99 +25.36 American Express Co 113.77 1.08 159,509 Nasdaq Composite Index 7,945.91 +73.64 Boeing Co/The 375.14 0.83 111,209 S&P/Tsx Composite Index 16,425.25 +56.22 Caterpillar Inc 120.21 0.14 150,511 Mexico Bolsa Index 42,941.10 +497.79 Cisco Systems Inc 47.04 -0.04 1,171,280 Brazil Bovespa Stock Idx 101,189.80 -326.20 Chevron Corp 112.84 -0.27 337,935 Ftse 100 Index 7,155.38 +77.74 Walt Disney Co/The 129.46 1.02 504,746 Cac 40 Index 5,488.32 +49.55 Dow Inc 45.51 0.44 159,163 Dax Index 12,012.81 +87.56 Goldman Sachs Group Inc 197.61 0.19 105,972 Ibex 35 Tr 8,961.80 +59.60 Home Depot Inc 228.74 0.85 159,801 Nikkei 225 21,410.20 +68.46 Intl Business Machines Corp 142.05 0.02 107,875 Japan Topix 1,572.90 +4.03 Corp 50.66 1.26 1,472,949 Hang Seng Index 25,821.03 -289.28 Johnson & Johnson 133.18 1.52 493,629 All Ordinaries Indx 6,636.90 +25.22 Jpmorgan Chase & Co 113.40 1.08 562,060 Nzx All Index 1,825.64 +12.00 Coca-Cola Co/The 54.11 0.50 536,552 Bse Sensex 30 Index 37,673.31 -433.56 Mcdonald’s Corp 210.43 0.19 160,955 Nse S&P Cnx Nifty Index 11,174.75 -139.25 3M Co 155.38 0.10 149,425 Straits Times Index 3,078.36 -9.61 Merck & Co. Inc. 84.14 1.69 474,847 Karachi All Share Index 23,972.47 +177.91 Microsoft Corp 137.45 0.86 2,590,493 Jakarta Composite Index 6,061.25 +22.72 Nike Inc -Cl B 92.27 0.05 359,096 Pfizer Inc 35.63 0.49 1,312,003 Procter & Gamble Co/The 123.11 1.13 323,581 Travelers Cos Inc/The 144.22 1.76 58,541 TOKYO Unitedhealth Group Inc 217.95 1.20 257,223 United Technologies Corp 132.77 1.19 88,548 Company Name Lt Price % Chg Volume Visa Inc-Class A Shares 176.03 1.83 640,503 Nidec Corp 14,130.00 -0.14 533,800 Verizon Communications Inc 59.57 0.95 745,701 Isuzu Motors Ltd 1,148.50 -0.43 1,708,600 Walgreens Boots Alliance Inc 52.76 0.30 374,580 Unicharm Corp 3,310.00 -1.11 724,100 Walmart Inc 117.54 1.06 316,940 Nomura Holdings Inc 466.70 1.13 15,894,000 Exxon Mobil Corp 68.01 0.04 843,766 Daiichi Sankyo Co Ltd 6,626.00 0.78 1,383,500 Subaru Corp 2,901.00 0.62 1,897,600 Sumitomo Realty & Developmen 4,034.00 0.55 969,300 FTSE 100 Ntt Docomo Inc 2,813.50 -0.11 3,777,300 Sumitomo Metal Mining Co Ltd 3,307.00 -0.42 969,000 Company Name Lt Price % Chg Volume Orix Corp 1,601.00 0.31 4,286,000 Asahi Group Holdings Ltd 5,411.00 1.06 889,600 Anglo American Plc 1,819.40 2.16 3,326,788 Keyence Corp 65,290.00 0.62 243,600 Associated British Foods Plc 2,205.00 0.46 549,321 Mizuho Financial Group Inc 163.20 -0.61 73,163,500 Admiral Group Plc 2,055.00 0.98 826,516 Sumitomo Mitsui Trust Holdin 3,770.00 -1.21 1,057,500 Ashtead Group Plc 2,144.00 2.44 1,253,527 Japan Tobacco Inc 2,365.50 1.00 3,982,900 Antofagasta Plc 829.40 0.61 1,504,670 Sumitomo Electric Industries 1,347.50 -0.37 1,368,100 Auto Trader Group Plc 488.00 0.64 2,530,372 Daiwa Securities Group Inc 487.60 1.02 5,064,400 Aviva Plc 380.00 -0.42 7,422,889 Softbank Group Corp 4,120.00 0.12 14,382,800 Astrazeneca Plc 6,998.00 0.84 1,306,561 Panasonic Corp 883.60 0.36 4,966,100 Bae Systems Plc 544.00 0.82 3,269,105 Fujitsu Ltd 8,599.00 0.55 466,100 Barclays Plc 142.94 0.62 22,939,096 The German share price index DAX graph is seen at the Frankfurt Stock Exchange. The DAX 30 rose 0.7% to 12,012.81 points Central Japan Railway Co 22,490.00 3.69 528,100 British American Tobacco Plc 2,801.50 0.45 2,504,967 yesterday. Nitori Holdings Co Ltd 15,470.00 -1.43 366,800 Barratt Developments Plc 620.60 0.42 3,093,196 Ajinomoto Co Inc 2,009.50 1.18 1,045,400 Bhp Group Plc 1,683.20 1.42 5,712,068 Daikin Industries Ltd 14,020.00 0.86 539,500 Berkeley Group Holdings/The 4,044.00 0.87 309,331 Mitsui Fudosan Co Ltd 2,676.00 1.34 2,813,500 British Land Co Plc 555.60 0.22 3,065,165 Ono Pharmaceutical Co Ltd 1,880.50 0.83 1,377,700 Bunzl Plc 2,013.00 0.35 442,147 Toray Industries Inc 785.00 0.06 4,080,000 Bp Plc 494.90 2.06 30,236,671 Bridgestone Corp 4,205.00 0.24 1,170,600 Burberry Group Plc 2,040.00 1.90 875,135 Europe stocks gain as US jobs Sony Corp 6,215.00 1.09 4,087,200 Bt Group Plc 176.44 1.10 12,569,095 Astellas Pharma Inc 1,496.50 1.18 5,708,100 Coca-Cola Hbc Ag-Di 2,589.00 1.85 354,828 Hoya Corp 8,543.00 -0.30 877,200 Carnival Plc 3,167.00 1.96 701,621 Nippon Steel Corp 1,479.50 -0.20 1,723,200 Centrica Plc 69.66 0.26 28,171,969 Suzuki Motor Corp 4,409.00 0.14 1,466,900 Compass Group Plc 2,049.00 1.89 1,696,467 machine calms slowdown fears Nippon Telegraph & Telephone 5,235.00 -0.27 2,158,700 Croda International Plc 4,748.00 1.84 339,049 Jxtg Holdings Inc 484.20 1.09 13,474,600 Crh Plc 2,668.00 1.02 1,577,479 Murata Manufacturing Co Ltd 5,443.00 1.85 5,629,800 Dcc Plc 6,832.00 1.94 83,600 AFP Still, many remained worried by ear- Against the dollar, the pound slipped Kansai Electric Power Co Inc 1,223.50 -2.32 9,397,800 Diageo Plc 3,288.50 0.29 2,157,509 lier data suggesting that the US is now 0.3% to $1.2294 and was down 0.5% Denso Corp 4,658.00 0.47 979,500 London Direct Line Insurance Group 277.90 -1.87 6,628,970 feeling the eff ects of its long-running against the euro at 89.35 pence. Sompo Holdings Inc 4,484.00 -0.82 896,500 Evraz Plc 422.20 0.02 2,474,801 At 1515 GMT, the currency was just Daiwa House Industry Co Ltd 3,516.00 0.54 1,430,600 trade war with China. Experian Plc 2,532.00 3.01 1,330,717 Dai-Ichi Life Holdings Inc 1,624.00 -1.58 4,055,300 lobal stock markets rose yes- On Thursday a measure of the cru- into positive territory for the week. Easyjet Plc 1,138.00 1.43 2,106,472 Mazda Motor Corp 941.20 0.77 3,758,600 terday, their mood lifted by US cial services sector came in at its low- The British government on Wednes- Ferguson Plc 6,370.00 1.47 701,250 Komatsu Ltd 2,386.00 0.23 3,431,600 jobs data assuaging fears of a est for three years. day proposed an all-island regulatory Fresnillo Plc 662.20 0.55 1,658,664 G West Japan Railway Co 9,095.00 0.29 444,900 Glencore Plc 226.65 -0.57 29,611,438 slowdown in the world’s top economy, “There was nothing in the US em- zone in Ireland to cover all goods, re- Kao Corp 7,910.00 -0.70 1,031,100 Glaxosmithkline Plc 1,699.00 1.70 5,357,662 analysts said. ployment report published today to placing the so-called backstop ar- Mitsui & Co Ltd 1,730.00 -0.20 3,973,200 Gvc Holdings Plc 761.40 2.81 1,375,082 American employers added a total of change our view that the US economy rangement, and was waiting for an Daito Trust Construct Co Ltd 13,765.00 -0.76 217,100 Hikma Pharmaceuticals Plc 2,067.00 0.63 311,870 Otsuka Holdings Co Ltd 4,139.00 -0.31 1,523,900 136,000 net new positions in Septem- will slow further and that the Fed will offi cial response from its European Hargreaves Lansdown Plc 1,816.50 -0.66 955,802 Oriental Land Co Ltd 16,435.00 1.14 505,000 ber, below expectations. cut rates only one more time in this cy- counterparts. Halma Plc 1,932.50 1.74 689,959 Sekisui House Ltd 2,141.00 0.54 2,582,700 But whatever disappointment the cle,” said Hubert de Barochez at Capi- But a European Parliament Brexit Hsbc Holdings Plc 601.90 -0.20 20,731,052 Secom Co Ltd 9,795.00 1.15 475,000 Hiscox Ltd 1,572.00 0.58 447,222 data brought was off set by an upward tal Economics. group believes the new proposals “do Tokio Marine Holdings Inc 5,730.00 0.21 1,294,300 Intl Consolidated Airline-Di 454.70 0.42 4,359,262 revision in August fi gures and another The dollar fell against both the euro not represent a basis for an agreement”, Aeon Co Ltd 1,988.50 0.10 1,607,700 Intercontinental Hotels Grou 4,838.50 1.25 270,277 drop in the unemployment rate, to a and the yen as rate cut expectations according to the draft of a statement Asahi Kasei Corp 1,074.00 1.99 3,344,700 3I Group Plc 1,094.50 1.67 1,936,997 50-year low. took hold, with only the Brexit-ridden seen by Reuters ahead of release later in Kirin Holdings Co Ltd 2,267.50 0.13 1,527,500 Imperial Brands Plc 1,820.60 -1.05 2,133,794 Marubeni Corp 694.10 -0.79 7,151,500 Wage growth was weak, however. pound failing to outperform the green- the day. A senior European Union of- Informa Plc 797.00 -0.65 1,911,741 Mitsubishi Ufj Financial Gro 537.70 -0.78 42,477,800 Analysts said the jobs report was back. fi cial said on Thursday that Johnson’s Intertek Group Plc 5,306.00 1.22 219,267 Mitsubishi Chemical Holdings 762.60 -0.26 5,328,300 “mixed”, and kept expectations of a Fed- Earlier, stock markets in Asia fi n- last-ditch Brexit proposal “can’t fl y”. Itv Plc 123.10 0.37 6,028,915 Fanuc Corp 19,190.00 -1.49 956,200 Johnson Matthey Plc 2,850.00 0.71 453,006 eral Reserve rate cut very much alive. ished mostly lower, with Hong Kong “Hopes for a last-minute deal have Fast Retailing Co Ltd 60,900.00 -0.62 698,200 Kingfisher Plc 192.30 1.72 8,111,355 The Fed has “enough ammunition marking the heaviest drop. diminished,” said Lee Hardman, an an- Ms&Ad Insurance Group Holdin 3,419.00 -0.26 1,006,100 Land Securities Group Plc 836.60 0.63 1,889,934 to commit to another rate cut,” judged Property fi rms were among the alyst at MUFG. “That largely rules out Kubota Corp 1,555.50 -0.10 2,671,400 Legal & General Group Plc 237.70 0.85 10,982,285 the possibility of the pound strength- Seven & I Holdings Co Ltd 4,041.00 0.37 1,692,600 Edward Moya at Oanda. worst hit, as demonstrators took to the Lloyds Banking Group Plc 52.03 0.79 72,487,707 Inpex Corp 940.50 0.11 6,207,200 The central bank may, however, hold streets again to protest the imposition ening from here.” London Stock Exchange Group 7,382.00 2.99 845,596 Resona Holdings Inc 451.00 -0.99 7,013,500 off from promising an entire easing of a law banning face masks following Hardman, however, said that in- Micro Focus International 1,063.00 2.31 1,548,607 Fujifilm Holdings Corp 4,586.00 0.15 1,248,300 vestors’ view that Johnson would be Marks & Spencer Group Plc 171.85 -3.94 7,825,305 cycle when Fed chiefs meet later this months of sometimes violent protests. Yamato Holdings Co Ltd 1,615.50 0.75 2,656,500 Mondi Plc 1,520.50 0.63 2,110,853 month, he said. Mumbai fell 0.7% after the Indian forced to seek an postponement to the Chubu Electric Power Co Inc 1,647.00 1.14 1,909,600 Melrose Industries Plc 192.85 3.10 10,459,559 Markets appeared “to fi nd some re- central bank announced a rate cut as departure date if he could not agree a Mitsubishi Estate Co Ltd 2,066.00 0.68 3,000,700 Wm Morrison Supermarkets 194.75 0.91 5,773,499 lief” from the jobs report, and went expected but slashed its economic deal have put a fl oor under the pound Mitsubishi Heavy Industries 4,210.00 0.31 725,500 National Grid Plc 870.10 1.34 4,344,174 Sysmex Corp 6,892.00 1.64 601,200 some way towards easing fears of a growth outlook. because few fear an immediate no-deal Nmc Health Plc 2,501.00 -1.46 439,560 Shiseido Co Ltd 8,525.00 0.35 912,500 recession, said analysts at Charles Shanghai was closed for a holiday. exit from the EU. Next Plc 6,032.00 0.07 260,098 Shionogi & Co Ltd 5,970.00 0.27 1,123,500 Schwab. Hong Kong sank 1.1% as the city’s Still, expected price swings for Ocado Group Plc 1,284.50 2.84 957,070 Terumo Corp 3,289.00 0.37 1,462,500 Paddy Power Betfair Plc 0.00 0.00 - In Europe, stocks were jolted out of government announced the face mask the British pound or implied volatil- Tokyo Gas Co Ltd 2,786.00 0.23 567,800 Prudential Plc 1,404.00 2.11 7,047,714 earlier softness by the data to end the ban as it looks to quell the demonstra- ity gauges stayed elevated with one- Tokyo Electron Ltd 21,030.00 0.84 1,169,200 Persimmon Plc 2,096.00 0.43 846,777 week fi rmly in the black, while Wall tions that have rocked the economy. month maturities trading above 11 East Japan Railway Co 10,375.00 0.83 436,800 Pearson Plc 723.20 1.74 3,079,738 Street was also stronger in the late New But there are worries that the rarely- vol, nearly double the levels from early Itochu Corp 2,210.00 -0.14 2,942,500 Reckitt Benckiser Group Plc 6,202.00 1.72 878,054 Ana Holdings Inc 3,668.00 0.85 1,039,100 York morning. used colonial-era emergency power September, indicating growing un- Royal Bank Of Scotland Group 195.10 0.83 9,270,017 Mitsubishi Electric Corp 1,434.00 0.42 2,633,900 London’s FTSE 100 was up 0.9% to could lead to further confrontations or ease from investors about the pound’s Royal Dutch Shell Plc-A Shs 2,319.00 1.42 4,364,945 Sumitomo Mitsui Financial Gr 3,647.00 -0.57 3,684,800 7,155.38 points, Paris’s CAC 40 gained more, stricter laws later. short-term outlook. Royal Dutch Shell Plc-B Shs 2,309.50 1.12 3,599,654 Relx Plc 1,857.00 1.89 3,065,953 0.9% to 5,488.32 and Frankfurt’s DAX Meanwhile, the British pound fell Just 28 days before the United King- Rio Tinto Plc 4,035.50 1.08 2,018,849 30 rose 0.7% to 12,012.81 at the close yesterday and was struggling to mark dom is due to leave the EU, both sides Rightmove Plc 542.60 2.07 1,525,421 SENSEX yesterday. its fi rst weekly gain in three weeks, are positioning themselves for a delay Rolls-Royce Holdings Plc 730.00 1.11 2,233,637 Traders reported investors switch- as concerns over whether Britain can or a disorderly no-deal Brexit. Johnson Rsa Insurance Group Plc 504.00 0.36 1,363,726 Company Name Lt Price % Chg Volume ing out of Treasury bonds and gold agree a Brexit deal with the European says he wants a deal but insists there Rentokil Initial Plc 455.30 1.27 1,986,585 Adani Ports And Special Econ 394.60 -2.30 1,610,595 into stocks as some appetite for risk Union at a summit later this month can be no delay beyond the end of the Sainsbury (J) Plc 210.10 0.86 4,549,280 Asian Paints Ltd 1,724.40 -1.40 1,231,811 rattled investors. month. Schroders Plc 2,884.00 -0.35 253,870 returned. Axis Bank Ltd 656.40 -1.80 15,317,105 Sage Group Plc/The 668.60 2.08 1,316,382 Bajaj Finance Ltd 3,903.95 -1.41 1,478,266 Segro Plc 807.00 1.43 1,801,882 Bharti Airtel Ltd 339.50 -1.57 4,705,661 Smurfit Kappa Group Plc 2,404.00 3.18 322,848 Bharti Infratel Ltd 245.70 -1.03 1,485,553 HONG KONG HONG KONG Standard Life Aberdeen Plc 271.00 0.63 4,444,795 Bajaj Auto Ltd 2,863.55 -1.19 342,652 Ds Smith Plc 335.00 3.01 3,675,999 Bajaj Finserv Ltd 8,300.75 -1.72 271,416 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Smiths Group Plc 1,528.00 0.23 835,110 Bharat Petroleum Corp Ltd 515.55 -3.02 27,515,921 Scottish Mortgage Inv Tr Plc 496.20 4.03 4,139,497 Ck Hutchison Holdings Ltd -1.72 Cipla Ltd 418.35 0.06 4,182,360 68.40 6,555,714 Hong Kong & China Gas 15.16 -1.43 14,213,672 Smith & Nephew Plc 1,884.00 1.78 1,380,397 Hang Lung Properties Ltd -1.12 Coal India Ltd 185.80 -0.51 12,238,072 17.66 10,102,738 Bank Of Communications Co-H 5.08 -1.55 16,734,391 Spirax-Sarco Engineering Plc 7,605.00 2.22 127,620 Ck Infrastructure Holdings L -1.97 Dr. Reddy’s Laboratories 2,617.70 -2.22 444,204 52.25 2,735,172 China Petroleum & Chemical-H 4.60 -1.50 65,159,029 Sse Plc 1,253.00 1.83 3,625,587 Hengan Intl Group Co Ltd -1.37 Eicher Motors Ltd 17,999.00 -1.56 143,155 50.40 1,333,968 Hong Kong Exchanges & Clear 226.00 -1.48 3,964,996 Standard Chartered Plc 638.60 -0.41 5,045,801 China Shenhua Energy Co-H -0.63 Gail India Ltd 132.15 0.34 11,743,792 15.76 8,015,274 Bank Of China Ltd-H 3.06 -0.65 132,605,987 St James’s Place Plc 917.60 0.44 904,203 Cspc Pharmaceutical Group Lt -0.99 Grasim Industries Ltd 654.40 -3.72 3,253,162 16.00 22,418,458 Hsbc Holdings Plc 58.25 -1.02 26,439,403 Severn Trent Plc 2,099.00 1.21 479,899 Hang Seng Bank Ltd -1.97 Hcl Technologies Ltd 1,079.10 0.21 1,347,094 164.60 2,170,287 Power Assets Holdings Ltd 53.15 -1.02 3,656,032 Tesco Plc 237.20 0.38 21,510,851 China Resources Land Ltd -0.45 Housing Development Finance 1,978.30 0.19 7,413,858 33.10 3,951,269 Mtr Corp 43.65 -1.91 6,584,298 Tui Ag-Di 915.80 -0.52 1,089,677 Ck Asset Holdings Ltd -1.40 Hdfc Bank Limited 1,189.70 -2.77 9,201,816 52.85 6,583,529 China Overseas Land & Invest 25.05 0.60 15,455,410 Taylor Wimpey Plc 149.60 -0.70 10,514,014 Sino Biopharmaceutical 0.20 Hero Motocorp Ltd 2,668.30 0.03 689,443 10.20 40,836,978 Tencent Holdings Ltd 322.80 -0.74 12,610,140 Unilever Plc 4,801.50 0.37 2,201,102 Henderson Land Development -1.76 Hindalco Industries Ltd 182.10 -0.27 6,277,398 36.20 8,361,630 China Unicom Hong Kong Ltd 8.36 -1.18 26,439,727 United Utilities Group Plc 804.00 1.11 1,090,282 Aia Group Ltd -1.41 Hindustan Petroleum Corp 320.70 -0.70 7,476,013 73.55 26,302,592 Link Reit 87.45 0.63 11,357,094 Vodafone Group Plc 157.86 1.69 30,235,360 Ind & Comm Bk Of China-H -1.53 Hindustan Unilever Ltd 1,944.20 -0.91 1,723,988 5.16 115,723,273 Sino Land Co 11.70 -1.02 4,482,069 John Wood Group Plc 348.20 -0.37 4,633,349 Want Want China Holdings Ltd -0.49 Icici Bank Ltd 413.90 -3.14 17,952,697 6.15 12,225,319 China Resources Power Holdin 9.25 -2.01 8,010,140 Wpp Plc 973.80 1.52 1,448,128 Sun Hung Kai Properties -2.89 Indiabulls Housing Finance L 245.25 -7.85 26,879,872 110.90 8,403,995 Petrochina Co Ltd-H 3.96 -1.74 61,211,647 Whitbread Plc 4,183.00 1.06 270,892 New World Development -1.14 Indusind Bank Ltd 1,265.30 0.78 7,423,301 10.40 20,047,231 Cnooc Ltd 11.54 -1.70 31,867,436 Geely Automobile Holdings Lt -1.93 Infosys Ltd 793.45 1.00 8,201,713 13.18 32,836,049 China Construction Bank-H 5.92 -1.17 177,887,866 Swire Pacific Ltd - Cl A -0.47 Indian Oil Corp Ltd 151.05 -0.46 18,259,486 73.45 1,222,774 China Mobile Ltd 65.00 -1.14 10,161,204 Sands China Ltd -2.34 Itc Ltd 257.25 -1.68 18,085,064 35.45 8,589,696 TOKYO Wharf Real Estate Investment -2.31 Jsw Steel Ltd 214.65 -3.11 6,600,815 42.35 5,011,037 Clp Holdings Ltd -1.34 Kotak Mahindra Bank Ltd 1,563.15 -3.26 5,487,681 81.00 2,918,181 Country Garden Holdings Co 2.77 Company Name Lt Price % Chg Volume Larsen & Toubro Ltd 1,424.90 -2.27 3,266,487 10.38 43,078,219 Aac Technologies Holdings In 3.20 Mahindra & Mahindra Ltd 564.25 0.28 4,653,685 43.50 11,287,486 GCC INDICES Japan Airlines Co Ltd 3,263.00 0.68 1,223,800 Shenzhou International Group 0.68 Maruti Suzuki India Ltd 6,649.60 -1.55 1,065,056 104.00 2,209,865 Indices Lt Price Change Recruit Holdings Co Ltd 3,380.00 1.02 5,040,500 Ping An Insurance Group Co-H -0.72 Ntpc Ltd 117.40 0.56 20,289,650 90.05 12,733,385 Softbank Corp 1,496.00 0.10 8,856,600 China Mengniu Dairy Co 30.00 -0.99 6,809,602 Oil & Natural Gas Corp Ltd 129.55 1.13 20,137,433 Doha Securities Market 10,310.69 -49.15 Kyocera Corp 6,628.00 1.25 1,070,000 Sunny Optical Tech 0.00 Power Grid Corp Of India Ltd 196.55 -1.28 10,936,177 118.70 3,384,420 Nissan Motor Co Ltd 660.10 0.33 9,447,900 Boc Hong Kong Holdings Ltd 25.90 -2.08 16,369,202 Reliance Industries Ltd 1,308.10 -0.23 6,853,954 Kuwait Stocks Exchange 4,697.04 +0.47 T&D Holdings Inc 1,135.00 -1.43 2,428,500 China Life Insurance Co-H -0.66 State Bank Of India 249.95 -1.65 60,029,186 18.06 14,596,962 Toyota Motor Corp 6,995.00 0.19 4,126,400 Citic Ltd 9.95 -0.50 5,512,763 Sun Pharmaceutical Indus 386.05 -0.54 4,024,033 Oman Stock Market 4,026.02 +1.04 Kddi Corp 2,942.00 0.81 4,474,300 Galaxy Entertainment Group L -2.70 Tata Steel Ltd 333.10 -1.91 11,445,216 48.65 12,720,599 Nitto Denko Corp 5,222.00 0.73 640,600 Wh Group Ltd 7.01 -1.41 39,566,186 Hitachi Ltd 4,013.00 0.17 1,946,600 Tata Consultancy Svcs Ltd 2,079.35 0.93 2,163,251 Takeda Pharmaceutical Co Ltd 3,640.00 -1.17 5,093,200 Tech Mahindra Ltd 708.15 0.80 2,273,166 Jfe Holdings Inc 1,282.00 -0.19 1,717,700 Titan Co Ltd 1,250.90 -3.44 2,383,219 Sumitomo Corp 1,664.50 -0.57 3,413,800 Tata Motors Ltd 119.65 -2.25 35,712,218 Canon Inc 2,865.50 -0.05 2,336,400 Upl Ltd 582.55 -1.99 3,019,366 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The Eisai Co Ltd 5,412.00 1.46 768,200 Ultratech Cement Ltd 3,979.55 -4.03 476,329 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Nintendo Co Ltd 40,970.00 1.19 1,117,500 Vedanta Ltd 143.30 -0.76 7,816,113 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Shin-Etsu Chemical Co Ltd 11,365.00 0.89 866,300 Wipro Ltd 237.70 0.78 2,975,521 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Mitsubishi Corp 2,625.50 0.15 5,084,700 Yes Bank Ltd 42.15 -0.82 512,643,766 this data.” Smc Corp 46,100.00 0.48 312,500 Zee Entertainment Enterprise 236.85 -5.84 21,327,140

Gulf Times Saturday, October 5, 2019 9 BUSINESS Asian markets end mixed

AFP for a rate cut, the bank could hold its Hong Kong horses for now. “With trade talks between the US and China restarting next week in sian markets were mixed yester- Washington it would make complete day as investors tentatively await sense (for the Fed) to see if any progress Athe release of key US jobs data, is made,” he said in a note. following a number of disappointing Tokyo rose 0.3%, Sydney was up fi gures this week that fanned concerns 0.4%, Seoul fell 0.6%, Taipei added about the world’s top economy. 0.2% and Wellington gained 0.7%. Hong Kong tumbled, with property Manila rallied more than 1%, while fi rms among the worst hit, as dem- there were also gains in Jakarta and onstrators took to the streets again to Bangkok. protest the imposition of a law banning Mumbai fell 0.7% after the Indian face masks following months of some- central bank announced a rate cut as times violent protests. expected but also slashed its economic Having avoided for the past few years growth outlook. the growth slowdowns suff ered in most Shanghai was closed for a holiday. other countries, a big miss on factory Hong Kong sank 1.1% as the city’s activity and private jobs creation indi- government announced the face mask cated the United States is now feeling ban as it looks to quell demonstrations The Bombay Stock Exchange building in Mumbai. The Sensex closed down 433 points yesterday, extending losses to the fifth straight day. the eff ects of its long-running trade that have rocked the economy. war with China. But there are worries that the rarely- On Thursday a measure of the crucial used colonial-era emergency power services sector came in at its lowest for could lead to further confrontations or three years, ramping up expectations more, stricter laws later. the Federal Reserve will cut interest Henderson Land, Sino Land, Swire rates for a third time this year at its Oc- Properties and New World Develop- tober meeting. ment all lost more than 1%. The latest data, while missing expec- “It’s the response from protesters tations, provided a lift to Wall Street — to whatever is going to be decided that Sensex suff ers big which had plunged more than one % on matters,” Jessie Guo, equity research Tuesday and Wednesday — as dealers strategist at China Merchants Securi- bet on another reduction. ties, told Bloomberg News. “The mar- Expectations are high for such a ket is concerned that protesters are go- move. “A quicker slowing in economic ing to carry on.” activity will put another brick in the The prospect of lower rates weighed Fed’s wall of worries about business on the dollar, which was down against confi dence and investment and may most higher-yielding, riskier curren- fall; rupee drops trigger a signifi cant policy response,” cies such as the South Korean won and said Stephen Innes, Asia-Pacifi c mar- Indonesian rupiah. Bloomberg, Reuters tors are unlikely to react strongly,” sector, risk of weakening of demand economists surveyed said that RBI ket strategist at AxiTrader. It was also off against the pound, de- Mumbai said Anita Gandhi, a director Arihant after tepid data prints on auto sales, repo rate will be reduced by 25 basis “Is bad news good news still? Indeed, spite uncertainty about the outlook for Capital Markets Ltd GST collections and core sector. RBI points to 5.15% while maintain an ac- that does appear to be the case after the Britain’s economy after Prime Minister “But in the long term it should help delivered 25 bps rate cut yesterday commodative stance. markets fully priced in a Fed rate cut in Boris Johnson’s latest Brexit plan failed ndia stocks closed their worst- with interest costs and generating which however failed to live up to in- The central bank also cut gross do- October and priced in December, sug- to win over the EU, just weeks before performing week since May after demand in the economy.” “Recently vestor expectations and markets sell- mestic product target sharply by 80 gesting that it’s monetary policy that the October 31 Brexit day. Ithe Reserve Bank of India cut its announced corporate tax cuts along off intensifi ed post the announce- basis points for fi scal year 2020 to continues to remain one of the essential In Tokyo, the Nikkei 225 closed up key policy rate by 25 basis points, in with lower interest rates should aid in ment,” said Sanjeev Zarbade, VP PCG 6.1% from 6.9%. drivers of investor sentiment.” 0.3% to 21,410.20 points and Hong line with expectations, and reduced private capex revival going forward,” Research at Kotak Securities. RBI also raised its second quarter But OANDA senior market analyst Kong — Hang Seng ended down 1.1% to its estimate for economic growth for said Mihir Vora, chief investment of- Meanwhile the rupee erased all its fi scal year 2020 retail infl ation pro- Jeff rey Halley added that while markets 25,821.03 points. Shanghai was closed the current fi scal year. fi cer at Max Life Insurance. gains and weakened against US dollar. jection to 3.4% from 3.1%. However, “pricing in an almost 100% certainty” for a public holiday. The Sensex fell 433 points yes- “With more banks and housing The domestic currency was trading at it retained its 3.5-3.7% projection for terday, extending losses to the fi fth finance companies pegging lending 70.89 a dollar, down 0.01% from its second half of FY20 and 3.6% esti- straight day. The NSE Nifty 50 Index rates with policy rates, and the fact previous close of 70.90. mates for fi rst quarter of FY21. was down 1.2%. Twenty eight out of that liquidity in the system is now in Government’s 10-year bond “The RBI’s growth projection is set 39 economists in a Bloomberg survey surplus, transmission of the cumu- yield yesterday pared all its losses to be disappointed again at end-No- had predicted the cut by the central lative 135 basis points rate cuts over and gained after Reserve Bank of vember (when Q3 GDP data are out), bank. the past 11 months should happen India cut rate which was in line which keeps the door open to another The easing of monetary policy adds faster.” with estimates but less than analyst cut at the December policy meeting. to government eff orts last month to Seventeen of 19 sector sub-in- expectations. However, with the RBI having already revive economic growth with corpo- dexes compiled by BSE Ltd declined The 10-year bond yield rose 7.5 ba- delivered 135bp rate cut and dimin- rate tax cuts. led by a gauge of banks HDFC Bank sis points to 6.688% from its Thurs- ishing marginal returns from each Sentiment has been tempered, Ltd contributed the most to the day’s close of 6.613%. Bond yield and additional rate cut, we believe the rate however, by a renewed crisis in India’s Sensex decline, decreasing 2.8%; prices moves in opposite direction. easing cycle is closer to its end. fi nancial sector, a year after the col- Kotak Mahindra Ltd had the larg- The RBI yesterday reduced rates We expect the RBI to deliver a fi - lapse of major infrastructure lender est drop, falling 3.3%; Oil & Natural by 25 basis points and maintained nal 15bp cut in December”, expects IL&FS. Gas Corp was the best performer, its policy stance to accommoda- Nomura Research in a note to its in- “Given the large revision in growth rising 1%. tive. Brokerage firm Bank of Amer- vestors. outlook, the 25-bps reduction seems Banking stocks have led the mar- ica Merrill Lynch have expected Analyst believes that the market inadequate,”’ Kotak Institutional kets lower in this current leg of de- 35 basis points cut, Edelweiss Se- will now look forward to any possible Equities said in a note. “A 40-50 cline. The Nifty Bank index has fallen curities projected 40 basis points open market operation purchase op- bps would have been commensurate 7.5% in just fi ve sessions. reduction and Nomura Research erations to get comfort on absorption along with a dovish guidance.” “Equity markets saw some correc- estimated 35-40 basis points cut in of additional supplies if any. Over all “A 25-basis point cut was already tion as investors got cautious about policy rate. bond yields to remain range bound An external view of the Hong Kong Stock Exchange building. The Hang Seng discounted in the market, so inves- declining asset quality in the banking Six out of 10 treasury heads and with easing bias, they expect. closed down 1.1% to 25,821.03 points yesterday.

Yes Bank CEO sees fundraising ‘sooner China’s yuan seen to slip to new decade lows Reuters a currency manipulator in August. The over 60% anticipating further deteriora- ciation in the Chinese yuan to pose “se- than market expects’ Beijing September 24-October 3 poll of over 60 tion or a continuation of the status quo rious risks” to other major Asian curren- foreign exchange strategists showed the and the rest forecast an improvement. cies over the coming year. yuan will be about 1% weaker at a more Forecasts for where the yuan will trade “Unless an interim trade deal materi- Bloomberg issues and focusing on the he Chinese yuan will slip by year- than decade-low of 7.20 against the dol- in a year were divided too, with 31 of 60 alises, we think economic and monetary Mumbai bank’s retail deposit base will end to deeper lows last hit against lar by end-2019. It closed Monday at 7.15. respondents expecting it to weaken fur- easing pressure will see CNY weaken, help it raise capital sooner than Tthe US dollar during the 2008 The currency is forecast to hover ther and 29 respondents seeing the yuan even though it will likely be paced by the later,” said Jaikishan Parmar, an global fi nancial crisis as the authori- around the same rate by March 2020 and gaining from here. PBoC,” said Khoon Goh, head of Asia re- Yes Bank Ltd chief executive analyst with Angel Broking Pvt. ties nudge the partly managed currency then appreciate to 7.16 per dollar by this “I think that there might be some signs search at ANZ in Singapore, referring to off icer Ravneet Gill said he in Mumbai. down while the US-China trade war time next year. in the shorter term to say that things will the People’s Bank of China. expects to complete raising as Kapoor, who co-founded Yes rumbles on, a Reuters poll showed. “The yuan is being held up by string, be the same or perhaps the trade tone im- A much weaker currency would el- much as $1.2bn “much sooner Bank in 2003 and built it into With global uncertainties aplenty and bogies and glue. proves or perhaps there is a minor deal,” evate risks of capital outflows, some- than the market expects,” after India’s fastest-growing lender, a US election year approaching, any pos- The trade war is going to get worse,” said Martin Rasmussen, China econo- thing China has controlled for years, sales of pledged shares this was forced out by the central sible resolution to the trade war at next said Michael Every, head of fi nancial mist at Capital Economics. “But some of but a weak growth outlook and expec- week eliminated an overhang bank amid a dispute over its week’s talks will be hampered by signs of markets research, Asia-Pacifi c at Ra- the core issues at the centre of the trade tations of further policy easing make on the lender’s stock. reporting of bad debts. a weakened yuan. bobank, who was the most pessimistic war such as industrial policy, intellec- things difficult for the world’s second Gill reiterated in an interview Gill was brought in from Chinese markets are closed until Octo- forecaster for the 12-month horizon at tual property theft and so on — we do not largest economy. on Thursday his target Deutsche Bank AG in March to ber 7 for public holidays. 7.75, not seen since early 2007. “There think that China will be willing to com- “They will have to continue doing of selling $1bn to $1.2bn stabilise operations, and has To counter losses from the trade war will be more downward pressure on the promise a lot.” whatever is necessary to try and keep of new shares to private spent the past few months and regain export competitiveness, the yuan and when that happens. These developments keep threatening money in. equity investors, technology trying to raise capital. Even People’s Bank of China has consistently It is bad news for all emerging market gains for other Asian currencies, barring But there’s a limit to how much tighter companies and family off ices. after Thursday’s surge, the set the yuan’s mid-point rate above the currencies.” the Japanese yen. capital controls can get — they are al- He declined to be more specific stock is down more than 70% key 7 per dollar rate, allowing it to fall Analysts were divided on expected All but one respondent to an additional ready incredibly draconian,” Rabobank’s on the timing for completing a this year. about 2% after Washington labelled it moves in US-China trade relations, with question expected another sharp depre- Every added. deal. The stock surged 33%. Investors have also been “Ideally we would like to do this concerned about Yes Bank’s in one shot,” Gill said. “I think exposure to India’s troubled every stakeholder of the bank shadow banking sector, which is of the same view that we has been in turmoil since the EM equities steady on Fed interest rate cut hopes should get as much capital as default of a major non-bank we need.” infrastructure lender last year. Yes Bank jumped more than The Reserve Bank of India is Reuters which could make the case for a Fed But trading volumes were muted on though we think risks are skewed 20% earlier in the day after expected to cut interest rates London rate cut stronger if it turns out to be account of a week-long holiday in towards the next cut taking place in Gill held a call with analysts to again later Friday to moderate another disappointment after dire mainland China. Q1 2020,” said Mitul Kotecha, senior reassure them that the forced the ensuring credit crunch and manufacturing and services data earlier Hong Kong shares fell 1% as the emerging markets strategist at TD sale of founder Rana Kapoor’s spur economic growth. Emerging market stocks steadied this week. territory’s government invoked colonial- Securities. pledged stake was the main In the interview, Gill also said: yesterday as bets of a rate cut from “The Fed will need to cut rates, whether era emergency powers for the first time Most developing currencies were on reason why the stock had The bank’s Core Tier 1 capital the US Federal Reserve increased after some members want to or not is another in more than 50 years in a dramatic move track to end the week lower, including tumbled in the previous two ratio improved in the fiscal weak data readings raised doubts about story,” said Stephen Innes, Asia Pacific intended to quell escalating violence in the Russian rouble and Turkish lira, but sessions. Gains extended to second quarter from the the health of the world’s top economy, market strategist at AxiTrader. the Chinese-ruled city. South Korea’s won was set to notch a as much as 36% later in the previous three months. With while Hong Kong stocks slumped after “Moreover, while this notion is Indian stocks reversed course to 0.4% weekly gain. session. fresh capital in place, Yes Bank emergency powers were invoked. buttressing risk assets like equities and trade lower after the central bank cut Emerging European currencies fared Even after the recovery, should be able to expand at a MSCI’s EM index rose 0.1% but headed oil, the current state of weak macro and interest rates for the fifth time this year better for the week, with Poland’s zloty the amount of capital Gill is pace of at least 20%. for its third straight week of decline relatively stable equity markets can’t as expected and also lowered its GDP on track to end the week 1.4% higher, seeking is equivalent to as The slump in Yes Bank’s shares after weak data from major economies exist much longer.” growth forecast from 6.9% to 6.1%. after a ruling on Swiss Franc mortgages much as 86% of Yes Bank’s on Monday and Tuesday including the United States intensified Tech stocks rose nearly 1% helped by The rupee barely budged. “We expect by the European Union’s top court gave market value. didn’t cause any major deposit global slowdown fears. Asian chipmakers after Apple raised its further easing given the widening output banks plenty of time to absorb the “Overcoming the asset-quality withdrawals. Focus now turns to US jobs data, iPhone 11 production. gap and limited inflation pressures, potential compensation costs. Gulf Times 10 Saturday, October 5, 2019 BUSINESS

Analysts keep faith in Canadian Dismal currencies trend paints dollar

Reuters bleak picture for global growth Toronto The Canadian dollar will Bloomberg this week. Australia’s dollar is trading gain ground against its London around levels last seen in 2009, during US counterpart over the the global economy’s recovery from the coming year, supported by fi nancial crisis, as is the New Zealand strengthening of the domestic or a stark assessment of global dollar. economy and a narrower gap recession risks, look beyond the The Reserve Bank of Australia cut between Canadian and US Fworld’s top currencies to the pro- rates earlier this week, confronted with interest rates, a Reuters poll nounced declines for their less-well- rising unemployment. predicted. traded peers. The currency has been sensitive at yesterday’s poll of nearly 50 The Australian and New Zealand times to both the outlook for growth currency analysts showed dollars, which trade as proxies for Asian in China and base metals prices, due to they expect the Canadian growth because of their commodity ex- the size of the country’s mining sector. dollar to strengthen 1% to ports, are bumping along at some of the It’s a slump compounded by sus- 1.32 per US dollar, or 75.76 weakest levels since the aftermath of tained weakness for China’s currency. US cents, in one month from the fi nancial crisis. The yuan trades at over 7.1 per dollar about 1.33 on Thursday. The tumble for Norway’s krone and and weakened as far as 7.2 in Septem- The loonie is then expected Sweden’s krona takes them to lows dat- ber. That has attracted criticism from to gain further to 1.3058 in ing back further still, almost to the start the US administration, adding political 12 months, which is about of the millennium. ammunition to the trade war between the same level as the median It’s a refl ection of the deepening the two countries, one of the main projection in September’s prospect of a global slowdown at the drags on growth. survey. same time as investors are unnerved by The weak points for Scandinavian Scotiabank is pinning its souring economic data, signs of stress currencies go back even further. Nor- forecast “on the fundamentals in money markets and the rumbling way’s natural resources mean the krone pulling through and from that risks of Brexit, trade wars and a US is closely tied to oil prices, while Swe- perspective we do expect Presidential impeachment. den’s krona refl ects the country’s ties to a modest appreciation in The clincher is that confi dence is global industry and trade. As the chart the CAD over the medium fading in the ability of monetary policy below shows, the dollar has reached its term,” said Shaun Osborne, to boost struggling economies, leaving highest levels against both since the chief currency strategist at growth-linked currencies particularly early part of last decade. the bank.”We think that the exposed. The lack of traction for monetary CAD is undervalued at these “We remain sceptical that central Australian dollar banknotes of various denominations are arranged for a photograph in Sydney. The Australian and New policy comes as the cost of borrowing levels.” The loonie is trading banks, in the absence of a trade agree- Zealand dollars, which trade as proxies for Asian growth because of their commodity exports, are bumping along at dollars rises alongside the popularity of at less than its potential ment, have suffi cient fi repower to drive some of the weakest levels since the aftermath of the financial crisis. defl ation trades which bet against cen- valuation because of an meaningful gains in the market,” says tral banks winning the fi ght for growth. uncertain outlook for global Mark Haefele, chief investment offi cer underweight the Aussie versus the US highlighting a trend that is both deep side of the trade – gains for the dollar There are other macro-level risks in the trade, Osborne said. at UBS Global Wealth Management. dollar. and broad. With monetary policy likely that have sent Bloomberg’s gauge of the air, not least the threat of a disorderly Canada is more dependent “Global trade tensions which have The plunge in growth-sensitive and to stay accommodative globally, the currency’s strength to a two-year high. Brexit. Fall could prove to be a season than some other countries, weighed on growth sentiment in Asia commodity-linked currencies has tak- chances of deeper rate cuts from the It’s within 1% of that mark despite that matches its name for a range of such as the United States, on should hurt the Australian dollar.” He’s en them to levels unseen in a decade, Federal Reserve failed to prevent the fl ip a string of weak US economic data riskier assets across global markets. trade. At C$1.5tn, trade of goods and services, including oil and motor vehicles, accounted Hedge fund quits a sleepy Swiss for 66% of Canada’s economy in 2018, according to government data. town and trounces quant rivals Sterling would get post-Brexit Still, the Canadian dollar and the Japanese yen have been Bloomberg supercharged recovery this year. When many the only G10 currencies to London CTA models were still mired in the fourth- boost if deal is reached gain ground this year against quarter sell-off , the Swiss fund calculated that the US dollar, with the loonie on a relative basis, the rebound in American up more than 2%. Canada’s In 2017, Patrick J Aregger took over an stocks warranted more allocation. Reuters economy expanded at an obscure hedge fund based in a sleepy Swiss The risk-adjusted model started to cut long London annualized rate of 3.7% in town. He moved its base to Zurich, shook up exposure to US Treasuries earlier this year as the second quarter, while the operations – and trounced the trend-follow- bond volatility rose. economy has been adding ing competition. While that might have crimped Quantica’s terling will get a post-Brexit jobs this year at a robust pace Quantica Capital’s flagship fund is up 26% ability to harvest that market’s massive gains, bounce in the month after if and inflation is close to the in 2019, compared with a 9% gain for an index it helped the firm’s main fund escape Septem- SBritain leaves the European Bank of Canada’s target of 2%. of commodity trading advisers, a breed of ber with just a 0.7% loss, compared with a 5% Union with a deal but suff er further This week, Canada’s two-year quant that uses futures contracts and typi- drop for the SG Trend Index. losses against the dollar in the event Treasury yield climbed above cally surfs market momentum. In September “The largest and longest secular trend in of a disorderly departure, a Reuters its US equivalent for the first the firm attracted about $100mn of new the last 15 years has obviously been the bond poll found. time in nearly two years, money, taking assets under management to trend,” Aregger said. “Then the question British Prime Minister Boris having traded as much as 84 $550mn. arises from the investor: what do you do if the Johnson made a last ditch off er to basis points below in March. For the chief executive off icer, the out- trend reverses? And we’ll say, we do whatever the EU on Wednesday to try to avoid The Bank of Canada has been performance is aff irmation of the Quantica it does. It’s not that the world will suddenly a no-deal Brexit on October 31 when concerned that trade conflicts model, which follows relative trends in prices stop having trends.” CTAs – which Eureka- the two sides are due to part ways. are weighing more heavily on that have been adjusted for volatility. He reck- hedge estimates oversee about $243bn – But analysts say the market is the global economy. ons that’s helped the team pick up on new have buckled in the post-crisis era thanks to largely sceptical the EU will agree But the central bank has trends quickly, allowing it to ride along with overcrowding and whipsawing trends. The to Britain’s latest off er and on shown no appetite for cutting this year’s mega bond and equity rallies. cohort recorded $10.9bn of outflows in the Thursday EU offi cials expressed Sterling will get a post-Brexit bounce in the month aft er if Britain interest rates despite easing “We hear from investors, ‘Oh, you guys at first eight months of 2019, after posting the doubt the latest British proposals leaves the European Union with a deal but suff er further losses this year by some global Quantica are more like trend following 2.0,’” worst returns this century last year according could yield an agreement before against the dollar in the event of a disorderly departure, a peers, including the Federal Aregger, a former manager at a unit of Man to a Societe Generale SA index. the deadline. Reuters poll found Reserve and the European Group Plc, said in a phone interview. “We Thanks to stronger cross-asset trends, The pound has whipsawed since Central Bank. have always looked at risk-adjusted relative they’re now set for their best annual gain in the June 2016 referendum, largely lief rally to some extent, if a deal is poll of around 70 foreign exchange Money markets see about a trends, and that is I think now coming to the five years. But volatility in September, when shrugging off increasingly gloomy reached,” said Shaun Osborne at strategists, taken this week, said 40% chance of an interest benefit of investors.” both bond and stock rallies faltered, was a economic data and instead buff eted Scotiabank. one pound would be worth $1.22 in rate cut by December, down Like most quantitative hedge funds, the reminder of the potential risks ahead. by the onslaught of news about how In contrast, if Britain leaves a month, $1.25 in six months and from about 90% one month precise details of Quantica’s methods are JPMorgan Chase & Co strategists the two sides will end their more without a deal the pound will fall $1.28 in a year. ago. The economic data proprietary, though Aregger does off er an estimated in a Friday note that, while a than four-decade marriage. and trade between $1.10 and $1.19. While that strengthening sug- “suggests that the BoC can outline: The firm standardises and ranks the short-term CTA momentum signal for the Reuters polls of economists in the Two respondents said it could gests a deal is most forecasters’ base buck the dovish tone from volatility-adjusted price trends of all 63 instru- S&P 500 is still positive, for 10-year US past three years have consistently reach parity with the greenback — a case scenario it is still a far cry from other global central banks ments it trades, helping it spot any shift in the Treasuries it has turned negative. Quantica said a deal would be struck. level not seen before. where sterling was trading at ahead and keep rates on hold for relative dynamics between assets. has trimmed its exposure from a 2019 peak, If that is the case, sterling — “Sterling would come under se- of the vote to leave. Against the euro now,” said George Davis, chief The Swiss firm’s Managed Futures program but it still has long positions in both fixed which was changing hands for vere pressure in a no-deal hard the one-, six- and 12-month fore- technical strategist at RBC returned 76% over 10 years through August, income and equities. around $1.24 on Thursday — would Brexit scenario, given the well doc- casts were for 89.2 pence, 89.5p and Capital Markets. “We expect compared with 32% for the SG Trend Index. All told, Aregger’s eff orts to spread the rally and trade between $1.27 and umented negative consequences 88.0p. this policy divergence to At the end of 2018, Quantica’s computers Swiss firm’s name are bearing fruit, helped by $1.34, Friday’s poll said. the crash out would have on the Those medians were a touch provide the scope for some turned positive on US equities before their a broader revival for CTA returns this year. “A lot of bad news is priced into economy,” said Conor Beakey at stronger for sterling than in a Sep- CAD appreciation in Q4.” the GBP so we would expect a re- AIB. Median forecasts in the wider tember poll.

With $0 fees, Schwab risks blowing up brokerage model it built

Bloomberg delity Investments. These types of ag- the fi rm have grown by about $800bn ford wrote. “We’re not feeling compet- New York gressive price cuts – admittedly a small from a combination of market gains itive pressure from these fi rms ... yet. boon for ordinary Americans routinely and net new infl ows. But we don’t want to fall into the trap nickel-and-dimed by fi nancial fi rms Nevertheless, the company is look- that a myriad of other fi rms in a variety ot too long ago, Charles – have some observers wondering ing for ways to reduce costs internally. of industries have fallen into and wait Schwab Corp helped to usher whether anyone can win in a busi- Last month, Schwab said it would cut too long to respond to new entrants. Nin the golden age of low-cost, ness where more and more services are 600 jobs, or about 3% of its workforce, It has seemed inevitable that commis- online stock trading. handed out for free. because of the “increasingly challeng- sions would head towards zero, so why Now, the brokerage may help to kill For Schwab, it’s a bold, but risky ing economic environment.” Schwab’s wait?’ The developments show just how off the fee-based business model alto- move. The fi rm, which relies less on latest move builds on an increasingly online stock trading is becoming a com- gether. trading commissions than its competi- aggressive, slash-and-burn approach moditised business. As a result, Devin Schwab said it will eliminate com- tors, is betting it can off set any decline to price reductions. Ryan, an analyst at JMP Securities, says missions on trades for all US stocks and of revenue by attracting more clients. TD Ameritrade said it would match brokerages will need to use their plat- exchange traded funds. The announce- It can then use their assets to generate Schwab’s no-fee trading off er at a cost forms to generate revenue from other ment – which was quickly matched by interest income, an essential feature of of as much as $240mn a quarter, or services. Those include securities lend- rival TD Ameritrade Holding Corp af- its business that’s come under pressure roughly 16% of its net revenue. Inter- ing, charging asset managers fees to off er ter markets closed – sent shock waves recently as interest rates have declined. active Brokers announced last week it their funds, and advisory services. across Wall Street. “Maybe because of the inception and would provide free trades. And in re- “They have to give a lot away for free Shares of ETrade Financial Corp growth spurt of online brokers during cent months, Fidelity, Vanguard Group to charge for parts of their platform slumped 16%, while TD Ameritrade the dot-com boom, there’s a romanti- fi rm takes in just 7% of its net revenue new deposits to off set that loss. Cur- and JPMorgan Chase & Co have taken that are less commoditised,” Ryan said. lost more than a quarter of its stock cisation of the individual trader,” said from commissions. That’s far less than rently, over half of Schwab’s net rev- steps to eliminate fees and commis- Firms like TD Ameritrade might start market value. Schwab’s share price Michael Wong, an analyst at Morning- Interactive Brokers Group Inc or TD enue comes from interest earned on sions on some off erings. charging subscription fees for access also took a hit, tumbling nearly 10%. star Inc. “There’s still a mindset among Ameritrade, which both collect more its assets. The fi rm, which oversaw According to Schwab chief fi nancial to data, options and margin accounts. The gambit is just the latest in an the investing public around the impor- than a third from trading fees. $3.72tn as of August 31, took in almost offi cer Peter Crawford, zero commis- It’s not just brokerages that are fac- intensifying, industry-wide war over tance of commissions,” which is less Schwab estimated it could lose up $20bn in net new assets that month. sions are an inevitable industry trend. ing pressure to cut prices. Fund man- fees for everything from stock trades important to Schwab. to $400mn in revenue a year from its Schwab last cut its trading commis- Schwab is just trying to get ahead of agers like BlackRock, Vanguard and to index funds and fi nancial advice. While trading costs have declined zero-fee off ering. Wong said that in sions in February 2017, when it reduced that. “We are seeing new fi rms trying State Street Corp have also been forced And it’s squeezing not only the likes of across the board, Schwab comes from the current rate environment, the fi rm them to $4.95 per trade from $6.95 to to enter our market – using zero or low to reduce the fees they charge, particu- Schwab, but also BlackRock Inc and Fi- a position of relative strength. The would need roughly $20bn or more in match Fidelity. Since then, assets at equity commissions as a lever,” Craw- larly for index-tracking funds. Gulf Times Saturday, October 5, 2019 11 BUSINESS

Europe corporate earnings recession may extend beyond 2019

Reuters data that fell below expectations, a ture for Europe for the remaining sets under management. “I would stocks slipped 1% last month. Before macro environment and earnings London move by Washington to hit European months of 2019 and into next year. expect more warnings after last the rotation, momentum stocks had downgrades led to one of the steep- products with tariffs and worries Companies are taking measures week,” Di Giansante said, following surged 20% as of August-end, while est sell offs in stock market history over Brexit. such as cutting costs to shore up the earnings downgrades by Pear- value stocks were up just 7%. Di Gi- in late 2018. ith markets taking fright It could be the worst week in a profits, but a harder-to-fix drop in son, Imperial Brands, British Air- ansante is among those that have But this time could be different, again this week over trade year for the pan European STOXX demand for products is expected to ways-owner IAG and Carnival Corp sought safety in cheaper stocks. some market experts said, as central Wtariffs and a faltering glo- 600 while the eurozone benchmark be evident in company revenues for that knocked billions of pounds off “In a normal world, if you’re cheap banks are more dovish now, provid- bal economy, investors are braced is heading for its biggest weekly fall the July-September quarter, which their market value. and you miss, in theory you should ing monetary stimulus and interest for weak third quarter results in in two months. are seen falling 0.3%, the first quar- At best, Di Giansante expects have more downside protection, but rate cuts that have supported stock Europe and high expectations going After falling into a so-called cor- terly turnover drop since early 2018. profit growth to flatline in 2020 that hasn’t been the case in the last markets. forward could come crashing down porate recession in the second quar- There is room for much disap- while UBS has pegged a 4% drop. year-and-a-half,” he added. Equity strategists do not expect to earth. ter after two straight quarters of pointment given that consensus A shift by investors into beaten- For these stocks, “you need to see 2020 earnings to be as bad as 2019. There have been a slew of profit profit decline, European companies profit estimates for the fourth quar- down stocks that look value for an inflection point around the cor- “You start with 10%...the ques- warnings in recent weeks which are expected to report in the coming ter and 2020 are still high at around money in September has caught ner, if you keep missing, it is post- tion is not where you start, but have stirred worries that the earn- weeks a 2.2% drop in profits in the 10% growth and analysts say expec- some investors off-guard, who poned”. where you’re going to end up,” Ed- ings slowdown will spill over into third quarter, their worst quarter in tations could be brought back down were heavily invested in momentum The final quarter of 2018 also mund Shing, global head of equity next year as companies grapple with three years, according to Refinitiv to reality over the coming months. stocks — rapidly expanding compa- started with major stock indexes derivates strategy at BNP Paribas weaker economic growth stemming I/B/E/S. “The big hurdle for this year would nies — but ahead of the results sea- close to current levels and earnings said. He expects earnings to rise 6% from trade spats and the uncertainty While 4% earnings growth is seen be the fourth quarter, not the third son value stocks are likely to be seen growth expectations for the year next year. caused by the UK’s delayed exit from as achievable for the United States in quarter,” said Fabio Di Giansante, as a shelter, giving less of a shock if a ahead around 10%. Analysts ended Aside from the battering stocks the European Union. the fourth-quarter, interviews with head of large-cap European equi- company misses estimates. up slashing earnings growth esti- received last week, the STOXX 600 Markets were rattled this week investors, analysts and strategists ties at Europe’s top asset manager MSCI global basket of value stocks mates for 2019 to low single digits index remains on track for its best by US manufacturing and services and companies paint a different pic- Amundi with €1.43tn ($1.6tn) in as- rose 4%, while the momentum and the toxic mix of an uncertain annual performance in six years.

Moody’s cuts Virgin Islands power agency bonds deep into junk

Bloomberg of the territory, where electric prices New York are already three times higher than the average in US states. The Virgin Islands overall, which has also seen n economically struggling its credit-rating slashed to junk, is US territory. A government- struggling under high pension debt Arun electricity provider fac- and a declining economy. ing potential insolvency. A debate An apartment unit with miss- among public offi cials about wheth- ing walls after Hurricane Irma in er debts are too burdensome to pay. St Thomas, US Virgin Islands, on That’s the situation in the US Vir- September 12, 2017. Stacey Plas- gin Islands, where the power agency kett, the territory’s representative is contending with a fi nancial squeeze in Congress, last month said she’s that echoes what happened in Puerto concluded the utility is “eff ectively Rico in the run up to that govern- insolvent” after speaking with the ment’s record-setting bankruptcy. authority and fi nancial experts. An exterior view of the Russian central bank building in Moscow. The Bank of Russia signalled yesterday that it may push ahead with its fourth interest-rate cut in a row, The uncertainty led Moody’s In- In a September 18 letter to the gov- as annual inflation slowed to the central bank’s target level of 4%. vestors Service on September 23 to ernor, she said the utility may need downgrade the most senior Virgin “federal court intervention” because Islands Water and Power Authority its operations are “under duress by bonds to eight steps below invest- several of its vendors/creditors.” A ment grade, indicating a high likeli- court intervention could help adjust hood of default. the utility’s debts, she said. Subordinate debt due in 2031 last James Spiotto, an expert in mu- traded at an average of 92 cents on nicipal bankruptcies, said Congress the dollar, above the 65% to 80% re- would have to act to allow the agency Bank of Russia hints covery that Moody’s rating suggests to go through the bankruptcy-like investors are likely to receive. process that Puerto Rico is using to The risk of default has increased restructure its debts. If there’s a de- due to WAPA’s “unsustainable capi- fault, bondholders could also move tal structure with very tight liquidity, to appoint a receiver and work on a high debt load including a substantial recovery plan for the utility to make unfunded pension liability, the in- its debt more sustainable, he said. creased frequency of power outages, Plaskett’s letter was a “wake-up at October rate cut reducing the reliability of the elec- call” about the condition of the util- tric system, high electric rates, and ity, Spiotto said. “Keeping the lights chronic challenges facing the econo- on isn’t just a nice thing to say, it’s my,” Moody’s said in a report. very important,” he said. Governor Albert Bryan Jr says the But Lawrence Kupfer, executive government is “steadfast” in making director of the authority, disputes sure that the utility’s bills are paid. Plaskett’s characterisation. He said as infl ation slows But the territory’s Congressional in a statement that he didn’t see the representative says its debt may need for declaring a state of emer- Bloomberg terday. “Overall risks are either bal- Annual infl ation slowed for a sixth The central bank needs clarity on need to be restructured, clouding gency, calling Plaskett’s comments a Moscow anced or declining. Financial markets straight month in September, Russia’s budget spending plans for the next year the outlook for investors who own “slap in the face” to employees try- risks are also under control.” state statistics service reported yester- in order to make its decision on future $227mn of the authority’s bonds. ing to restore power. The statement After 75 basis points of easing this day. The Economy Ministry, which is rate cuts, Yudaeva said earlier yester- The saga resembles a small-scale didn’t address the utility’s debt. he Bank of Russia signalled year, Russia still has one of the highest pushing for deeper rate cuts, estimates day. A likely jump in spending at the repeat of what happened to the Jean Greaux, spokesman for the that it may push ahead with its real interest rates in emerging markets, that infl ation could decelerate to below end of 2019 will feed into next year’s Puerto Rico Electric Power Author- authority, didn’t respond to requests Tfourth interest-rate cut in a row, and elevated borrowing costs are taking 3% next year, well below a central bank infl ation numbers, she said. ity, which went bankrupt in 2017. for comment on the utility’s debt. as annual infl ation slowed to the cen- their toll on growth. forecast that it will stay near the cur- Orlova is now one of just four econo- WAPA serves about 55,000 electric Governor Bryan isn’t calling for tral bank’s target level of 4%. The last Economists at Goldman Sachs rent level. mists in a Bloomberg survey who are customers and 12,000 water custom- a restructuring and instead sup- time it met, the central bank said more Group Inc warned this week that “The central bank had left the door forecasting a 25 basis-point cut, with ers in the territory, according to a 2017 ports looking for opportunities to easing was probable at one of its next the inflation trajectory implies the open for further cuts, but allowed it- the other 14 expecting no change. Most fi nancial statement, and about 90% of refi nance its obligations, said Karl meetings. Yesterday fi rst deputy gov- central bank needs to cut rates more self some freedom to choose the tim- were polled before yesterday’s infl ation the utility’s electrical grid was dam- Knight, chief of staff . ernor Ksenia Yudaeva indicated that aggressively. ing,” Tatiana Orlova, an economist at data and Yudaeva’s comments. aged by hurricanes two years ago. Virgin Islands lawmakers will dis- the balance of risks has now changed. Yields on Russian 10-year govern- Emerginomics in London. “The CPI “We aren’t changing our forecast A 2018 report by the nonpartisan cuss the utility at a hearing Tuesday. “Looking now, although there are a ment bonds headed for their biggest data published today has removed that yet,” said Sergey Konygin, an econo- Congressional Research Service said Senator Myron Jackson said the ter- lot of one-off factors, we see infl ation drop in a month yesterday, in part due freedom. It would look very odd indeed mist at Gazprombank in Moscow. “If the costs of rebuilding and modern- ritory has long struggled with energy easing,” fi rst deputy governor Ksenia to a rally in emerging markets. The rou- if the central bank didn’t cut its policy the infl ation trend continues, we think ising the territory’s electric grid like- issues that he proposed legislation Yudaeva told reporters in Moscow yes- ble strengthened for a third day. rate at the October meeting.” they will cut in December.” ly “far exceeds” the fi nancial ability for in 2013. US manufacturing slowdown spreads to services sector

By John Kemp plans and spending on other durable the historical relationship between the slowed sharply from around 4% in the London goods. New orders for non-defence two indicators over the last 20 years. first half of 2018 as job growth has capital equipment excluding aircraft, The other source of ballast/inertia slowed and the impact of tax cuts has a proxy for investment spending, fell in the modern economy stems from faded. The US economy faces the greatest marginally in the three months from consumer spending, which is holding Mirroring that slowdown, real personal risk of outright recession for a June to August compared with the up well at the moment but also shows consumer expenditures were up just decade as the slowdown spreads same period a year earlier. signs of decelerating. 2.5% in the three months June to from manufacturing to the much New orders have slowed from growth Real personal income excluding current August compared with a year earlier, larger and more stable service sector. of more than 8% at the same point in transfer payments such as social down from growth of 3.5% at the same Most indicators show manufacturing 2018 and are now falling for the first security, unemployment insurance point in 2018. has already started to shrink with time since 2015/16. and veterans’ benefits is one of the The overall picture is one in which the purchasing managers’ surveys and new Service sector output and employment indicators used by the National Bureau most cyclically volatile parts of the orders pointing to a decline in activity tend to be much less cyclical and of Economic Research (NBER) to economy are already contracting, and levels in recent months. volatile than in manufacturing identify turning points in the business arguably in recession, while the more The Institute for Supply Management’s (“Business cycles: theory, history, cycle. stable parts of the economy show composite purchasing managers’ index indicators and forecasting”, Zarnowitz, Falls in real personal income minus continued but slowing growth. for manufacturing fell last month to its 1992). current transfers is one reason NBER’s The probability of the whole economy lowest level since the last recession in The increasing dominance of services business cycle dating committee, the entering recession is now higher than 2009. in the economy is one of the main widely accepted arbiter of recessions, at any time since 2008/09, which is The manufacturing downturn is now reasons fluctuations in the business identified recessions starting in March reflected in the deep and sustained more widespread than either of the cycle have become much less extreme 2001 and December 2007 — but not inversion in the US Treasury yield curve. mid-cycle slowdowns in 2012 and since 1945. Expansions have generally in 2012 or 2015, when real personal The service sector and consumer 2015/16, according to the ISM survey. become longer while recessions have income continued increasing despite spending can help provide The survey’s new orders component become less frequent and shorter (with output and employment tend to follow that July 2012. Unlike manufacturers, weakness elsewhere in the economy. continuing momentum and avert was far into contraction territory in the notable exception of the post- the manufacturing sector, albeit with a non-manufacturing firms continued to In aggregate, real personal income a formal recession — but only if both August and September which financial crisis recession of 2008/09). delay and at a smaller magnitude. report growth last month, but it was minus current transfers was still up by the manufacturing situation does suggests activity is likely to decline The service sector has added more The ISM’s non-manufacturing survey, not very widespread, and it has been 2.8% in the three months from June to not worsen and starts to improve further in the short term. So far, the inertia to the economic system, which covers service providers as well trending consistently lower since the August compared with the same period reasonably soon. slowdown has been concentrated dampening short-term movements like as construction and real estate firms, start of the year. Services growth is a year earlier, buoyed by employment in manufacturing, driven by a sharp a fly-wheel or the ballast on a ship. fell sharply in September to its lowest decelerating as expected given the and wage gains.  John Kemp is a Reuters market analyst. retrenchment in business investment Nevertheless, changes in services level since August 2016 and before slowdown in manufacturing, in line with But real personal income growth has The views expressed are his own. Saturday, October 5, 2019 GULF TIMES BUSINESS

QSE WEEKLY REVIEW Domestic institutions’ net buying seen marginally edging up

By Santhosh V Perumal witnessed higher than average selling Trade turnover and volumes were on the Qatar National Cement this week. perceptibly to QR29.78mn compared to transactions by 54% to 13,830. The real Business Reporter pressure as the 20-stock benchmark increase this week which saw four of the Nevertheless, Doha Bank, QIIB, Qatar QR25.52mn the previous week. estate sector reported 47% surge in trade settled 1.05% lower this week which saw five sessions under bearish spell. Oman Investment, Qatari German Com- However, domestic funds’ net buying volume to 124.47mn shares, 52% in value the bourse, in collaboration with Iridium The Total Return Index shrank 1.05%, Al pany for Medical Devices, Medicare Group, rose marginally to QR64.39mn against to QR126.2mn and 52% in deals to 5,806. The Qatar Stock Exchange was overall in Investor Relations, launch the fifth annual Rayan Islamic Index (Price) by 1.39% and Widam Food, Qatar Islamic Insurance, QR63.96mn the week ended September 26. However, the transport sector’s trade the negative, losing more than 109 points investor relations excellence programme. All Share Index by 0.71% this week which Al Khaleej Takaful, United Development Non-Qatari individuals’ net buying volume plummeted 39% to 12.25mn this week despite stronger buying, par- Local retail investors continued to be saw market capitalisation erode about Company and Milaha were among the strengthened noticeably to QR6.66mn equities, value by 58% to QR40.29mn and ticularly within the real estate counter. bearish but with lesser vigour this week QR5bn or 0.86% to QR571.67bn mainly on gainers this week which saw industrials compared to QR3.1mn a week ago. transactions by 47% to 838. Foreign institutions’ increased selling which saw no trading of sovereign bonds small and microcap equities. and realty stocks constitute about 69% of Local retail investors’ net profit booking There was 12% plunge in the consumer pressure was visible this week which saw and treasury bills. The industrials index plummeted 2.82%, the trading volume. eased to QR41.15mn against QR41.54mn goods sector’s trade volume to 47.41mn the key barometer touch a high of 10,435 Islamic stocks were seen declining faster telecom (2.57%), insurance (0.84%), The industrials sector accounted for 49% the previous week. stocks but on 43% expansion in value to points on Tuesday but only to see weaken- than the other indices this week which consumer goods (0.74%) and banks and of the trading volume, realty (20%), banks Total trade volume rose 50% to 616.62mn QR151.41mn and 9% in deals to 3,310. ing in the subsequent days. saw as many as 7,627 Masraf Al Rayan financial services (0.31%); while realty and and financial services (15%), consumer shares, value by 17% to QR1.21bn and The telecom sector’s trade volume was Domestic institutions’ net buying was sponsored exchange traded fund QATR transport gained 2.37% and 0.74% respec- goods (8%), insurance (4%), telecom (3%) transactions by 17% to 34,496. down 5% to 17.27mn shares, value by 23% seen marginally edging up this week valued at QR0.02mn trade across two tively this week. and transport (2%) this week. The insurance sector’s trade volume to QR64.27mn and transactions by 35% which saw Qatar’s producers’ price transactions. Major losers included Qatari Investors In terms of value, banks and financial almost tripled to 24.36mn equities and to 2,405. earnings decline 16.5% year-on-year and Non-Qatari individuals were increasingly Group, Gulf International Services, Me- services accounted for 35%, industrials value more than doubled to QR59.27mn The banks and financial services sector 1.5% month-on-month in August 2019 on bullish this week which saw a total of saieed Petrochemical Holding, Industries (29%), consumer goods (13%), real estate on 79% increase in deals to 1,380. saw 4% fall in trade volume to 91.18mn weakened earnings in hydrocarbons and 14,515 Doha Bank sponsored QETF valued Qatar, Ooredoo, Qatar Islamic Bank, Ahl- (10%), insurance and telecom (5% each) The industrials sector’s trade volume equities but on 9% growth in value to manufactured products. at QR0.15mn changed hands across five ibank Qatar Commercial Bank, Qatar First and transport (3%) this week. more than doubled to 299.74mn stocks, QR422.54mn despite 10% lower deals to Industrials and telecom counters deals. Bank, Qatar Industrial Manufacturing and Non-Qatari funds’ net selling increased value grew 38% to QR346.43mn and 6,927.

EU to urge G20 response on Facebook’s US unemployment falls to Libra; calls for tech tax reform

50-yr low of 3.5% in Sept Reuters Brussels

AFP Washington European Union finance minis- ters will tell their counterparts at a G20 meeting in mid-Oc- merica’s jobless rate tumbled tober that a global regulatory in September to its lowest level response is needed to “stable- Ain 50 years, according to gov- coins” such as Facebook’s Libra, ernment data released yesterday, de- an EU document said. lighting the White House even though The ministers, who will formally it may not assuage recession fears as approve the text next week, are President Donald Trump’s trade wars also calling on G20 partners persist. to reform their taxation of Meanwhile, with a strong dollar and digital companies in 2020 and slowing global economy, the US trade to urgently address trade ten- defi cit widened in August, as the trade sions which “put global growth confl icts ate into export growth. at risk”, the terms-of-reference Trump immediately cheered the document said. good jobs data, claiming his economic “Latest developments with record should shield him from eff orts regard to stablecoins and to impeach him. the multi-faceted regulatory, But there was less-than-stellar news oversight and supervisory as well: the pace of job creation was the challenges these represent, slowest in four months and wages fell, call for seamless cooperation while the manufacturing workforce and concerted response at also shrank for the second time this global level,” the EU will tell G20 year. partners at a meeting of finance Wall Street was reassured by the ministers and central bankers in news, with the benchmark Dow Jones Washington on October 17-18. Industrial Average up 0.6% toward Facebook’s planned Libra is the 1500 GMT. most well-known of the stable- Unemployment fell two tenths of a coins — cryptocurrencies backed point to 3.5%, matching the rate last by assets such as traditional recorded in December 1969, and well money deposits, short-term below what analysts had forecast, ac- government securities or gold. cording to the Labour Department. EU heavyweights France and Employers added a total of 136,000 Germany have criticized Face- net new positions, which was below book’s project, saying it posed expectations, with notable slowdowns risks to EU states’ sovereignty. in education, government, fi nance and The European Central Bank has business services. also called for strict oversight of The August job gain was revised Libra and will present a report up sharply to 168,000, nearly 40,000 on it at the G20 meeting, EU more than originally reported. off icials said. But signs of the slowdown were un- At the meeting, EU ministers ambiguous: at 157,000, the average for Managers speak with job seekers during a hiring event at a supermarket in Darien, Illinois (file). Unemployment fell two tenths of a point to 3.5%, matching the rate last will also reiterate their warnings the last three months is now well below recorded in December 1969, and well below what analysts had forecast, according to the Labour Department. that trade tensions are disrupt- the 223,000 a month recorded during ing the global economy. 2018. a year-long string of steady gains and groups continue to benefi t: unemploy- by General Motors employees, who Meanwhile, the strong US dollar “Current trade tensions are a “Breaking News: Unemployment limiting consumers’ spending power in ment among Hispanics fell to its lowest walked off the job the week after the fuelled American imports of consumer source of great concern and Rate, at 3.5%, drops to a 50 YEAR the coming months. level since records began in 1973. survey for the September jobs report items like mobile telephones as well as put global growth at risk,” the LOW. Wow America, lets impeach your The mining sector added no workers And for workers without a high was conducted. semiconductors and industrial equip- document said. President (even though he did nothing after three straight months of layoff s. school diploma, the jobless rate fell In a separate report also released ment, according to the report. It was prepared before the latest wrong!),” Trump tweeted. The auto sector shed workers for the to the lowest since records began in Friday, the Commerce Department As a result, the US trade balance escalation in the trade tensions The hotly-anticipated jobs report fourth month in a row. 1992. said the yawning US trade defi cit rose crept 1.6% higher to $54.9bn for the between the EU and the United also landed amid a raft of worrisome “Job growth is set to slow much fur- The broadest measure of unemploy- by nearly $1bn in August as weakening month, surpassing economists’ expec- States that has paved the way economic data showing Trump’s trade ther,” Ian Shepherdson of Pantheon ment, which takes into account those foreign demand and the churning trade tations. for new US tariff s on EU goods wars have put a dent in the business Macroeconomics said in a note to cli- working part time but seeking full time confl ict ate into US export growth. Imports increased 0.5%, while ex- in a dispute over EU aircraft environment and suggesting hiring ents. jobs, and those marginally attached to The unexpected increase in could ports rose 0.2%, rising more slowly subsidies. Off icials said the text should slow in the coming months. “This is as good as it’s likely to get the labour force, fell to the lowest level weigh on GDP calculations for the third than in July. would not be changed, as it Average hourly wages fell by a penny until the trade war is resolved.” in nearly 19 years. quarter while a global economic slow- The defi cit is up more than 7% in the already called for urgent action to $28.09 last month, well below econ- But given the dwindling supply of The latest data did not refl ect the down is expected to weaken US exports fi rst eight months of the year over the to resolve trade disputes. omists’ expectations, putting an end to workers in the US economy, some nationwide strike launched last month toward the end of the year. same period of 2018.

Ethiopian Airlines close to Airbus A220 deal for 20 planes

of a Boeing 737 MAX outside Addis Ababa, which killed 157 ECB’s old guard attack Draghi’s Bloomberg Johannesburg people. Tewolde reiterated that the carrier would be the last to resume flights of the currently grounded model, long-term easy money policy Ethiopian Airlines Group is close to agreeing a deal with which is nearing a vital test with the US Federal Aviation Airbus SE for as many as 20 narrow-body A220 planes worth Administration. Ethiopian has 28 MAX aircraft on order, more than $1.6bn, reviving an earlier plan after a spell using alongside other Airbus, Boeing and turboprop models, Reuters fl ected the radical overhaul of the in confl ict with the bank’s policy of larger Boeing Co 737s. according to the company’s website. Frankfurt once conservative institution’s poli- buying government bonds to combat Africa’s biggest and most consistently profitable carrier “It’s only natural for us to be the last one to decide on the cies under Draghi. the eurozone’s debt crisis. is in late-stage talks about the purchase of the 100-seater MAX,” the CEO said. “If we’re convinced the problems are The memorandum was released to Last week, Sabine Lautenschlaeger aircraft, which should be completed by the end of the year, fully addressed, and that the re-certification is done in a ix former eurozone central journalists less than a month before became the fourth German to leave chief executive off icer Tewolde GebreMariam said in an collaborative manner with all regulators, then we will take bankers yesterday criticised the Draghi makes way for incoming ECB the central bank ahead of time in less interview at the state-owned airline’s head off ice in Addis the time, eff ort and energy to convince our pilots, crew and SEuropean Central Bank’s ultra- president Christine Lagarde. than a decade. Ababa. passengers that the aircraft is safe to get back in the air.” easy monetary policy under the presi- The Frenchwoman told her confi r- Modelled on Germany’s own Bun- The move would be a reversal of a decision last year to try Another major issue is the diff iculty of getting cash out of dency of Mario Draghi, saying it has mation hearing at the European Par- desbank and preoccupied with con- flying larger planes to cities including Windhoek in Namibia various African countries where foreign-exchange is in short been unsuccessful and probably aimed liament that an easy monetary policy taining infl ation, the ECB was slow- and the Botswana capital Gaborone. To fill those jets, supply. Ethiopian has almost $100mn stuck in Angola, Sudan, at bankrolling indebted governments. stance was needed but also had side er than its peers in Britain and the Ethiopian had to stop off at a second destination such as Zimbabwe and Eritrea, Tewolde said. In a two-page document, former eff ects. United States in resorting to massive Victoria Falls on the way, the CEO said. Using A220s will make Still, Ethiopian would not consider giving up on those ECB board members Juergen Stark Analysts expect her largely to fol- bond purchases in response to the fi - direct flights viable. markets, as it wants to maintain it’s role as a pan-African and Ottmar Issing, along with former low Draghi’s line, which she support- nancial crisis of 2008. It was not until “It’s a good airplane — we have been studying it long carrier serving the whole continent. rate setters from Germany, France, ed during her time as managing di- Mario Draghi took offi ce in 2011 that enough,” Tewolde said on Thursday. With a range of five “Other airlines will have stopped, but we want to be there for Austria and the Netherlands, also ar- rector of the International Monetary the ECB ditched German orthodoxy hours the jet is particularly suited to smaller markets that are a long time,” Tewolde said. “We have to find ways and means gued that the ECB’s aggressive stim- Fund. “As former central bankers and by gradually pushing rates below zero relatively distant, he said. of continuing the operation.” ulus was unjustifi ed, infl ated prop- as European citizens, we are witness- and eventually buying some €2.6tn The A220 was formerly known as the Bombardier Inc C Ethiopian is a success story among African carriers, erty prices and could even sow the ing the ECB’s ongoing crisis mode of eurozone bonds, mostly issued by Series before being taken over by Airbus. Ethiopian could with its two main rivals — Kenya Airways and South African seeds of the next crisis. with growing concern,” wrote the six governments. buy between 10 and 20 planes, the CEO said. The A220-100 Airways — struggling with losses and relying on government Their attack came at a time of dis- signatories, most of whom are in their The ECB has credited these ex- model costs $81mn each, according to 2018 list prices. support. The company had net income of $189mn in the year cord inside the ECB, where more than 70s and 80s. treme measures with staving off the The order would be Ethiopian’s first since the crash in March through June, the CEO said. a third of policymakers opposed more Stark, a German, stepped down economic threat of defl ation, or a money printing last month, and re- as the ECB’s chief economist in 2011 sustained fall in prices.