BUSINESS BBUSINESS | 19 BUSINESS | 20 Lebanon’sL new Fed seen holding financefin minister rates steady, ending Wazni meets bill purchases IMF official by June

SUNDAY 26 JANUARY 2020

BUSINESS BRIEFS QDB’s outstanding loans to SMEs at QR6.7bn Mazaya to study MOHAMMAD SHOEB The short term financing achieve the objectives laid under the possible strategic THE PENINSULA to promote exports in 2019 country’s long-term vision. In terms of providing market access partnership with The total outstanding loans extended by stood at QR507m, while total (through Government Procurement and Al Bandari Qatar Development Bank (QDB) to SMEs financial support through Contracting Conference & Exhibition— reached a whopping QR6.7bn in 2019, Moushtarayat and other initiatives) local DOHA: Mazaya Real Estate Devel- registering a year-on-year growth of insurance policies reached SMEs were able to sign contracts for 3,233 opment has announced its intention nearly 8 percent compared to QR6.2bn at QR562m. job opportunities valued QR 1.22bn. to explore the possibility of merging loans provided in the previous year. QDB, apart from providing local as with Al Bandari Real Estate. “Mazaya The short term financing to promote well as global market access and financial would like to inform its sharehold- exports in 2019 stood at QR507m, while started giving special focus in projects support services, it also offers a lot of ers in particular and public investors total financial support through insurance related to food security in the country, other benefits such as incubation facil- in general that it have received an policies reached at QR562m. resulting in sharp rise in the number of Qatar Development Bank headquarters ities, consultancy, market intelligence, offer from Al Bandari related to the The QDB disclosed that it made SMEs related to the agriculture and food training and skill development pro- merger on January 22, 2020…. remarkable achievements in 2019 in sector, which has been growing steadily 2019, reporting a double-digit growth grammes, meetings, seminars, workshops this offer has been referred to the almost all segments of its services, since then. of 36 percent in its investments com- and exhibitions. Board of Directors for their review including financial assistance to small and In 2019, the number of QDB-sup- pared to previous year. Through its Al In 2019, QDB organized 1,442 bilateral and to take necessary action”, Maz- mid-sized enterprises (SMEs) and pro- ported food security projects witnessed Dhameen programme, the development meetings, 354 consulting services, 25 aya Qatar said in a regulatory filing. viding them access to job opportunities. a remarkable 65 growth (year-on-year), bank provided a loan guarantee of workshops and more than 100 training The Peninsula The state-owned development organ- while the number of industrial projects QR938m in 2019. Al Dhameen is an ini- programmes dedicated to SMEs. Some isation is the main entity responsible for funded by the Bank saw 26 percent tiative related to credit guarantee to 6,600 trainees benefited from QDB’s supporting and promoting local SMEs to growth. The total number of companies promote the growth and development training and development programmes GWC announces establish a vibrant private sector in the receiving the QDB’s financial benefits of SMEs in Qatar. in 2019 with a growth of 88 percent com- establishment of country. This is part of efforts to achieve increased to 951 in 2019, recording a QDB noted that 2019 was full of pared to the previous year. economic diversification in the energy- growth of 5 percent against the previous accomplishments for the organization, QDB has also provided housing loans its subsidiary rich economy in line with Qatar National year, according to key numbers released and it is committed to providing all the to 33, 510 clients, up 3 percent, with the Vision 2030. by QDB on its Twitter handle. needful support to Qatari SMEs, and combined value of its outstanding loans DOHA: Gulf Warehousing Company After the unjust economic blockade The QDB also invested in 27 small, looking forward to providing the best reaching at QR24.3bn, witnessing 6 percent (GWC) has disclosed the estab- imposed on Qatar in early June 2017, QDB medium and emerging companies in services in the coming years aiming to growth compared to previous year. lishment of its subsidiary, GWC Investment, in Qatar. GWC Investments is 100 percent owned by Al-Khaleej Chemicals German media giant Axel Warehousing. The Peninsula Springer quits stock exchange Banks to ask for

AFP — BERLIN £4bn tax cuts in post-Brexit German media giant Axel Springer announced on Friday HONG KONG: UK, European and that it would begin delisting American banks plan to ask the from the Frankfurt Stock British government for as much Exchange, following its as £4bn ($5.2bn) annually in tax takeover by American breaks post-Brexit after paying bil- investment firm KKR. lions in extra levies to the Treasury “Axel Springer SE plans to since the financial crisis, The Tel- withdraw from the stock egraph reported. exchange,” the group con- Bank chiefs, who say they have firmed in a statement. received offers from EU countries The withdrawal for their business, hope to convince announcement from Springer, Welt, still media landmarks Chancellor Sajid Javid, the British which has been listed on the despite falling sales, and has newspaper reported, citing an uni- MDax index for the last 35 pushed online with brands like dentified official familiar with the years, comes after KKR bought Politico Europe and Business request. 44.9 percent of the company’s Insider. Friede Springer, widow The banks will request a review of Boeing 777X first flight event shares to become principal of the group’s founder, and chief the bank levy and bank surcharge, shareholder in a deal con- executive Mathias Doepfner according to the report in which the Boeing workers are pictured near a 777X aeroplane during a first flight event, which had to be pictured rescheduled due to weather, at Paine Field in Everett, Washington. cluded last year. ( ) retained their stakes UK Treasury declined to comment. Springer publishes national of 42.6 and 2.8 percent, BLOOMBERG print newspapers Bild and Die respectively.

Sentix global aggregate economic index Global economy likely to continue in a Goldilocks scenario for 2020 (diffusion index, -100/+100, 0 = neutral assessment )

What is the sweet spot for global be observed in the sharp changing its monetary policy Phase 1 trade agreement, economic conditions? Like rebound of the Sentix global reaction function, i.e., the respon- receding trade tensions Goldilocks in the old British tale, aggregate economic index from siveness of nominal policy rates between the US and traditional most investors prefer an a position that was negative and to changes in inflation and output. allies (Canada, Mexico, EU, economy that resembles a good deteriorating to one that is pos- Fed officials moved towards a Japan, South Korea), diminished porridge, neither too hot nor too itive and improving. The index new approach that targets risks of a hard Brexit and the cold, but “just right.” In macro tracks investor sentiment about “inflation symmetry” within the moderation of anti-business terms, this translates into an economic activity. Downturn business cycle, i.e., periods of sentiments in the US political ideal scenario of moderate fears suddenly turned into a above target inflation are agenda. Exogenous events are growth with high employment condition that is “just right.” But expected to offset periods of hence unlikely to produce a sig- and low inflation. In other can the sweet spot continue for below target inflation. Previously, nificant downturn over the words, an economy that is hot long? the Fed would only target coming quarters. enough to propel or maintain In our view, the Goldilocks forward-looking inflation expec- Third, China’s economy is earnings growth, but cool scenario is likely to continue tations, ignoring past inflation. now bottoming and the initial enough to keep monetary well into 2020. Four reasons Under the new approach, trade agreement with the US authorities from tightening underpin our position. the Fed will target higher provides more space for policy policy. This is relevant as policy inflation in order to make up for stimulus. While we expect responses to inflation pressures QNB ECONOMIC years of subdued inflation. This Beijing to continue its cautious coming from overheated econ- COMMENTARY is going to raise the bar for future approach, we recognize that the omies have often caused both interest rate hikes. Such an formalization of a deal with the recessions and bear markets. approach will likely be exported US and recent policy actions are Goldilocks is therefore a First, major central banks are from the Fed to other major pointing to stronger accommo- comfortable scenario of per- unlikely to reverse recently central banks. Therefore, tol- dative measures from economic sistent growth prospects with implemented accommodative erance for higher inflation will authorities. In the past, bouts of global financial conditions. current Goldilocks scenario for low downside risks. There is measures. Chances of a signif- increase, effectively extending Chinese monetary and fiscal Reflation forces coming from the global economy will con- little doubt that at some point icant “inflation scare” are slim Goldilocks scenarios. stimulus spilled over to advanced economies and China tinue for longer. The sweet spot in Q3 last year global recession/ due to the persistence of secular Second, global headwinds emerging markets and other are expected to prop up investor of moderate growth, high deflation fears were reversed deflationary forces, including glo- in the form of political and geo- open economies, supporting risk appetite, pushing capital to employment and low inflation by more aggressive monetary balization and the structural gap political risks are subsiding. This synchronized global growth EM. This often triggers a pos- is likely to be supported by policy easing and positive in the bargaining power between is due to both lower probabil- mini-cycles. itive feedback loop of capital secular deflationary forces, developments in trade negoti- labour and capital. This places a ities of risk materialization and Fourth, global tailwinds are inflows, FX stability, interest stimulus from major central ations. Since then, the economic cap on wage growth and limits lower potential impacts from going to be particularly bene- rate flexibility and expansions banks, shifts in the outlook of expansion cycle gained further the prospects of inflation accel- eventual economic disruptions. ficial for emerging markets of both domestic investment political risks, a stronger support with almost all major eration. Moreover, the US Federal Positive developments for (EM), which previously suffered and consumption. Chinese recovery and a more asset classes rallying. This can Reserve (Fed) is currently investors include the US-China from a US-led tightening of All in all, we believe the positive backdrop for EM. 18 BUSINESS SUNDAY 26 JANUARY 2020 All-new 2020 Cadillac XT6 arrives in Qatar

THE PENINSULA — DOHA about simplicity, with an exe- said John Plonka, XT6 chief cution of premium materials. engineer. “Our goal is to antic- Mannai Trading, the exclusive We want the customer to focus ipate our customer’s needs for dealer of Cadillac in Qatar, has on the experience, making each a refined, engaging ride, announced the arrival of the journey extraordinary”. matched with an interior expe- all-new 2020 Cadillac XT6 in Attention to detail is the rience that provides a place of Qatar. The luxurious 3-row mark of a luxury experience, so rejuvenation, connectivity and crossover is now available for the 2020 Cadillac XT6 has been adaptability in all three rows,” sale at a starting price of carefully curated to offer a he added. QR229,000 at the Cadillac refined ride and comfortable The XT6 Premium Luxury Mannai showroom. interior that elevate every drive. model stands up to tough road The new Cadillac XT6, Some of design details in the conditions with a bright grille which is now available in XT6 are front and centre, such finish created with a premium The new Cadillac XT6. Premium Luxury and Sport as the exotic wood decor on the hot foil stamping process. The Trims, has six meticulous fea- Premium Luxury model and the dimensional, foil-based finish tures that distinguish the all- precision weave in the carbon is treated with a protective The new Cadillac additional alerts if the XT6 is matter. Cleaner air can make new, three-row Cadillac XT6 to fiber trim on the XT6 Sport coating to make it more durable XT6, which is now approaching an identified the drive more comfortable, stand out. Customers are model. Premium French and easier to clean. pedestrian too quickly, poten- particularly for those who suffer encouraged to call the hotline seaming appears throughout Form and function blend available in Premium tially giving drivers more time seasonal allergies. 800-1808 for more information the cabin, and perforations in seamlessly in the XT6’s rear Luxury and Sport to react. Being a modern family and to book a test drive, said the available ventilated front spoiler. Its primary role is The XT6’s first-row centre crossover, the Cadillac XT6 Mannai in a press statement seats echo the shape of the enhancing aerodynamic effi- Trims, has six console offers a convenient, offers the most comprehensive released yesterday. Cadillac crest. ciency, but it also cleverly meticulous features lined and lit storage area with standard safety package in its Cadillac Design’s Executive “The XT6’s thoughtful houses the rear window wiper a dedicated phone com- class. It comes standard with Director Andrew Smith said: details reveal themselves the and washer, as well as the that distinguish the partment and standard wireless seven airbags, including a roof “The interior environment is longer you live with the car,” available rearview mirror all-new, three-row charging, a flocked change rail-mounted head-curtain camera1 and wash. All are Cadillac XT6 to stand holder and cupholders with airbags for outboard positions cleverly hidden beneath the retractable lids. of all three seating rows. It also spoiler’s trailing edge for a out. The rear cargo area features gets an HD Rear Vision cleaner, smoother appearance, underfloor storage with a clever Camera with Remote Wash for and an unobstructed rear view. cover that stays open in any impeccable visibility while A hydrophobic coating on the Camera Mirror1 provides a position or at any angle for reversing. XT6’s rear camera lenses also digital display that removes additional carrying capacity and Other safety features include helps resist mud, snow and objects that could obstruct a tra- easy loading, an elegant and Forward Collision Alert, Fol- spotting, a detail drivers will ditional rear mirror view, such thoughtful detail with immeas- lowing Distance Indicator, Auto- appreciate every time it rains as passengers, headrests or the urable functionality. The matic Emergency Braking, Front or snows. vehicle structure itself. covered compartment in the Pedestrian Braking, Front and The XT6 offers technologies The available Night Vision1 floor of the XT6’s cargo area is Rear Park Assist, Lane Change to help support a clear, unob- system is designed to provide perfect for stowing things out Alert with Side Blind Zone Alert, structed view. The available the driver with an infrared night of sight. Rear Cross Traffic Alert, Lane Surround Vision camera vision image of the area beyond The available, next-gener- Keep Assist with Lane Departure system1 provides a bird’s-eye the headlamps that highlights ation air ioniser is designed to Warning, Safety Alert Seat and view of the vehicle, making tight and provides alerts when it clean the XT6’s air by reducing Rear Seat Reminder. All in all, maneuvers and obstacles easier detects pedestrians or large airborne contaminants such as the XT6 is one of the safest The interior of the new Cadillac XT6. to manage. The available Rear animals. The system provides pollen and fine particulate vehicles in its class. MARKETWATCH US Treasury chief Qatar Islamic Bank sponsors Mnuchin says optimistic about Qatar’s first Franchise QSE FTSE100 DOW CRUDE US-UK trade deal 10,624.06 7,607.82 29,267.83 $54.54 -56.58PTS +100.15PTS +107.74PTS -1.05 Conference and Expo 2020 REUTERS — LONDON 0.53% 1.33% 0.37% Dow & Brent before going to press US Treasury Secretary Steven THE PENINSULA — DOHA Mnuchin said he was optimistic about the chances of a trade Qatar Islamic Bank (QIB) has deal between the United States announced that it will partic- Trump, Johnson talk security and Britain this year, adding that ipate in Qatar’s first Franchise he met Britain’s finance minister Conference and Expo 2020 as ahead of Huawei decision on Saturday to discuss it. a support sponsor. Organized “I’m quite optimistic,” by Ibhar for Exhibitions, in AFP — LONDON because of concerns, strongly Mnuchin said when asked about cooperation with their stra- denied, that the firm could be the potential for a deal between tegic partner International Prime Minister Boris Johnson under the control of Beijing. the two countries at an event World Franchise Associates discussed telecoms security with Washington has been lob- held at the Chatham House (London), the exhibition will be US President Donald Trump as bying London to do the same, but think tank in London. held at Sheraton Doha Hotel he prepares to announce if there is speculation that John- Mnuchin said he had a on the 27th of January 2020. Britain will use China’s Huawei son’s government will grant breakfast meeting with British The exhibition aims to in its 5G networks, officials said some kind of limited access, with finance minister Sajid Javid support Qatar’s local firms to yesterday. a decision expected next week. earlier yesterday, having also attract international brands In a phone call on Friday Huawei is already well spoken to him this week at the considering to invest in the evening, the leaders “discussed established in British 3G and 4G World Economic Forum in Qatari market. It features a range of issues, including coop- networks, and officials have Davos. “We’re focused on trying various industries including eration to ensure the security of warned that banning it would be to get this done this year because clothing, accessories, food and our telecommunications net- hugely costly and delay the we think it’s important to both beverages, health and beauty, works”, a Downing Street rollout of 5G technology. of us,” he told the audience. and education services. spokeswoman said. Intelligence agencies also He said that after the United The expo showcases a wide QIB head office In London yesterday, US believe that they can contain any States recently concluded the range of foreign franchises, as Treasury Secretary Steve potential risk, although Johnson initial phase of a trade well as companies offering Mnuchin said Huawei’s and his top ministers will make agreement with China, deals consulting and support Qatari economy. QIB provides economy, and the highest GDP involvement in next generation the final decision. with Britain and the European services, providing current and support, finance and consul- per capita in the world, 5G mobile networks was a “com- At Chatham House, Mnuchin Union were now the focus. potential franchise holders tation to corporate businesses, presents tremendous oppor- plicated issue”. also repeated Washington’s While he conceded that with a great opportunity to including Small and Medium tunities for businesses looking “We are in active discussions desire to strike a post-Brexit Britain may need to finalise explore successful and enterprises (SME’s), across to expand internationally. with the UK government and trade deal with Britain within a some issues with the European mutually beneficial business various sectors, providing The franchise economy in others about Huawei,” he told year. London is hoping to open Union before it could discuss opportunities. growth opportunities to the Middle East and North the Chatham House think tank formal trade negotiations with them with Washington, he Commenting on the partic- investors”. Africa is worth $30bn and is after talks with British Finance the EU and US as soon as pos- didn’t see this as creating a ipation, Tarek Fawzi, General The expo’s organisers growing by 27 percent per Minister Sajid Javid. sible after leaving the bloc on delay. “I think a lot of the issues Manager of QIB’s Wholesale stress that the favorable eco- year. The Gulf Cooperation “Huawei is a complicated January 31. Mnuchin said some can be dealt with simultane- Banking Group, said: “QIB is nomic growth in Qatar Council (GCC) nations are at issue, what part of their network questions may have to be ously and again we look sponsoring the exhibition as encouraged many regional and the forefront of the growing it goes into. I don’t want to get resolved with Brussels before forward to continuing a great part of its strategy to support international retail chains to franchise economy in the Mena into the details, but there are they could be finalised with the trade relationship, and, if any- activities that enhance eco- establish presence in the region, with more than 50 active discussions.” The United US, but added: “I think a lot of thing, I think there will be sig- nomic growth and empower country. They strongly believe percent of retail sales being States has banned Huawei from the issues can be dealt with nificantly more trade between entrepreneurs, thereby pro- that Qatar, with a growing generated from international the rollout of its 5G networks simultaneously.” the US and the UK,” he said. moting diversification in the population, a rapidly growing brands. US says e-commerce firms need to do more about fake goods

AP — WASHINGTON as well as shippers and oper- overwhelmed by the scale of the increase from 2000. exponentially every single year,” ators of warehouses where activity online.” To underscore their point, said Mark Morgan, acting com- E-commerce has unleashed an merchandised is stored. Fake merchandise, every- and the potential risk, they dis- missioner of Customs and increasing torrent of fake It also calls on e-commerce thing from bogus medicine to played a range of bogus goods, Border Protection. merchandise upon the world companies to strengthen pro- knockoff handbags, has always including a bike helmet, ciga- The plan was created in and private companies and the tections for consumers, more been around but has never been rettes, auto parts and tools and response to a presidential memo US government must do more thoroughly screen third-party so universally available with the fake medications. signed by President Donald to address the problem, Trump sellers who use their sites and growth of e-commerce through DHS considers the issue a Trump in April that called for administration officials said take other actions to reduce the sites such as Amazon, eBay and threat to national security the creation of a strategy to rein Friday as they released a plan spread of counterfeit products the Chinese giant Alibaba. because of the potential danger in what the administration aimed at cracking down on that has ballooned with growth The international trade in to public health from adul- called the “Wild West” of online launch a consumer awareness counterfeit goods. of online sales in recent years. counterfeit products rose 154 terated pharmaceuticals and trafficking in counterfeit goods. campaign. An “action plan” released by “Some platforms have put percent, from $200bn in 2005 cosmetics as well as the harm In addition to increased Release of the plan follows the Department of Homeland in place certain measures to to $509bn in 2016, according to to the U.S. economy. Officials scrutiny of the industry and the recent signing of the Phase Security says the government guard against counterfeits,” the Organization for Economic say the proceeds from coun- enforcement, the plan says 1 trade agreement with China, will apply increased scrutiny of Chad Wolf (pictured), the acting Cooperation and Development. terfeit goods may also benefit authorities will seek to apply in which the Chinese gov- e-commerce, including the secretary of DHS, said in DHS said in the report that it global criminal networks. fines and penalties to a ernment agreed to combat third-party sellers who sell releasing the plan, “but there made nearly 34,000 seizures of “This is an absolute “broader range” of participants patent theft and counterfeit goods on the major online sites efforts are oftentimes fake goods in 2018, a 10-fold righteous threat that’s growing in the counterfeit networks and products. SUNDAY 26 JANUARY 2020 BUSINESS 19 Lebanon’s new finance minister Fitch raises Greece’s Wazni meets IMF official status making it AFP — BEIRUT delegation from the World Bank crunch. The economic easier to sell new debt led by its regional director Saroj downturn has raised questions The new finance minister of Kumar Jha. over whether Lebanon will BLOOMBERG — ATHENS Greece’s economy is the debt-saddled Lebanon met Wazni assumed the post of turn to the IMF for a bailout -- reduction of bad loans that cur- yesterday with an official from finance minister on Tuesday an option the government has Fitch Ratings raised Greece’s rently stand at some €75bn. the International Monetary with the formation of a long- yet to comment on but which sovereign credit rating by one The government has put in Fund for what he said was a awaited cabinet that faces huge some officials regard as notch, paving the way for the place an Italian-style solution “courtesy visit” and not bailout economic and political inevitable. government to sell more debt to help banks cut their non- talks. challenges. Last month, former prime in the coming days. performing exposures and Ghazi Wazni’s (pictured) The previous government minister Saad Hariri discussed The Mediterranean coun- lenders are now trying to make meeting with IMF alternative resigned on October 29, two a possible economic rescue plan try’s long-term foreign cur- use of it. executive director Sami Geadah weeks into a nationwide protest with the heads of the IMF and rency debt was upgraded to BB The so-called Hercules came as Lebanon grapples with movement demanding the the World Bank, further fuelling with a positive outlook from project foresees the packaging its worst economic crisis since removal of politicians deemed speculation of a bailout. BB-. of soured debt into securities the 1975-1990 civil war. incompetent and corrupt. If Lebanon does turn to the While Greece hasn’t that will then be sold with the The meeting served to “con- Wazni comes into the post IMF it may have to increase its enjoyed such a high rating by use of a partial state guarantee. gratulate Lebanon on the for- “The discussions will not at a time when the plummeting value-added tax, slash subsidies Fitch since the country entered It aims to help banks cut their mation of a new government,” focus on an economic rescue Lebanon pound has lost over a to the state-owned electricity the bailout era in 2010, it’s still bad loan by some 40 percent Wazni said on Twitter plan, which is being prepared third of its value against the company, tackle rampant cor- two levels below investment over the next few years. afterwards. (separately) inside gov- dollar in the parallel market. ruption and enact a raft of grade, highlighting that the Fitch expects banks to He had told AFP earlier that ernment,” he added. Lebanese banks are tight- structural reforms, according Greek government has to do “accelerate the pace of it was “a courtesy visit... to get It follows a meeting on ening restrictions on dollar to previous IMF more so as to secure an exit reduction in 2020.” “However, to know the IMF team”. Friday between Wazni and a transactions amid a liquidity recommendations. from junk status. banks’ asset-quality clean-up “For now our estimate for plans, which aim to reduce trend GDP growth is unchanged non-performing exposure Glenn Dubin to at 1.2 percent but tangible ratios in two to four years to progress in the government’s single digits remain sensitive retire from hedge policy agenda (aimed at to Greece’s operating envi- fund, focus on improving the business climate ronment and investors’ appetite and attracting private for distressed assets, as well as family office investment) could underpin an the effectiveness of the legal improvement in medium-term framework,” Fitch said. BLOOMBERG — NEW YORK GDP growth,” Fitch said in a Fiscal Room Greece needs statement. to move quickly to introduce Billionaire manager Glenn Fitch’s upgrade helps with a single insolvency Dubin (pictured) is retiring a government plan to issue a framework, especially abol- from running his hedge fund new bond as soon as next week. ishing a law that stops to focus on direct investing Greece has no need to borrow primary residences from through his family office. money to cover its 2020 being auctioned off when Dubin, 62, is turning financing needs but wants to owners fail to pay mortgages. over management of the sell as much as €10.65bn The current protection will $1bn Engineers Gate to Greg ($11.76bn) to show a return to end in April and the gov- Eisner, he said in an internal normality after a decade-long ernment has to agree with the memo sent Friday and seen debt crisis. country’s creditors a new by Bloomberg. He will step While not yet finalized, the framework. down from the firm at the Finance Ministry may sell a If Prime Minister Kyriakos end of the month. new 15-year bond as a first step Mitsotakis successfully com- “After forty years, I am in the country’s financing pletes this task, then he’ll ask looking forward to transi- program for this year. Investor Greece’s creditors for more tioning from being an interest in such an offering fiscal space so he can ‘Investment Manager’ to an would signal they believe in implement all the tax relief he ‘Investor,’” Dubin wrote in Greece’s long-term debt sus- promised austerity weary the memo. tainability as 15-year notes will Greeks. A first round of talks on The announcement mature in 2035. That’s after a possible measures for more comes five months after a Mnuchin speaks at Chatham House safety net expires, which the fiscal room took place last previously sealed deposition US Treasury Secretary Steven Mnuchin (left) speaks at Chatham House in London, Britain, yesterday. euro-area provided with debt week when a creditor mission drew the billionaire into the relief measures agreed in 2018. was in Athens for Greece’s fifth scandal surrounding the late The main challenge facing post-bailout review. financier Jeffrey Epstein: A woman who said she’d been Epstein’s “sex slave” years Turkish furniture sector set to Trump expands aluminum, steel earlier claimed she’d been forced into an encounter broaden its global presence with Dubin. He and his wife tariffs to some imported products promptly denounced the ANATOLIA — ISTANBUL prioritized, the aim is to open allegations as “demon- new malls in different places strably false.” Turkey, which made $3.5bn in the US and different parts of BLOOMBERG — NEW YORK Brazil, Argentina, Canada, Aus- percent since the president’s Reuters earlier reported furniture exports last year, is the world, he noted. tralia, Mexico and South Korea. announcement in March 2018. on Dubin’s retirement. He preparing to open two furniture Turkey and the US recently The Trump administration While imports of aluminum Steel companies, as well as told the news service that his malls in the US and Dubai in targeted to reach $100bn expanded its trademark steel and steel have declined since the American aluminum pro- decision was unrelated to the coming months. bilateral trade volume and the and aluminum tariffs to cover Trump administration imposed ducers, including Alcoa Corp. attention on his relationship While the country’s fur- furniture sector was among five certain imported nails, staples, levies, some derivative products and Century Aluminum Co., with Epstein. He also said the niture sector continues its main sectors. electrical wires and some down- “have significantly increased have seen shares fall because news coverage surrounding existence in the global market “With this project, Turkey stream parts that go into auto- since the imposition of the tariffs of declining demand -- it was “false” and upsetting. in terms of exports, it aims to will have a global brand and mobiles and tractors, among and quotas,” according to alongside a dip in manufac- Dubin is the latest hedge create a global brand and per- permanent outlet for pro- other products. Trump’s proclamation. turing activity, and because of fund veteran to step away manent sales channel abroad. moting and exporting the coun- The decision comes almost Trump said in the document increased domestic supply from the business. Louis Koray Caliskan, the head of try’s furniture products,” Cal- two years after the adminis- that he had agreed with Com- coming online. Bacon of Moore Capital Man- the country’s oldest furniture iskan underlined. tration implemented tariffs on merce Secretary Wilbur Ross in National security concerns agement and Redwood showroom and a shareholder Touching on the US project, imports of foreign raw steel and his findings that aluminum regarding trade fall under Capital Management’s of project MODOKO, said the Caliskan said studies for the aluminum that President Donald articles and steel articles were Section 232 of the Trade Jonathan Kolatch both mall in the US will open in the mall are continuing, adding a Trump said threatened the via- being imported into the United Expansion Act. The original 232 recently said they were first half of this year in Kansas major part of the work has bility of the domestic industries States in such quantities and decision of 2018 covered raw ending their decades-long state and Dubai project will be already been completed. and therefore threatened US under and under such circum- metal making and did not careers managing client completed within two months. The mall in the US will be national security. stances as to threaten to impair include downstream parts, money. As part of the project, fur- providing services such as Some imports of derivative the national security of the which was a complaint among Dubin co-founded hedge niture malls will sale Turkish management, sales, montage aluminum products would be United States.” After the tariffs some domestic makers of parts fund Highbridge Capital furniture products of numerous and logistics. “We are waiting subject to an additional 10 were imposed in 2018, American that go into heavy machinery, Management in 1992, and brands. for the approval process and percent duty, while some deriv- steelmakers, including Nucor automobiles, airplanes and sold a majority stake in the The project was jointly procedures for incentives, it ative steel products would be Corp., US Steel Corp. and Steel other goods, who worried that firm a dozen years later to launched by MODOKO, another will be announced in the first slapped with a 25 percent tariff, Dynamics Inc. enjoyed importers would avoid the JPMorgan Chase & Co. He leading furniture showroom half of 2020,” he added. he said. increased profits, which pro- tariffs by simply importing exited that firm in 2013, and MASKO and Kayseri Organized Caliskan asserted that these Argentina, Australia, Canada vided a catalyst for them to value-added products. founded his family office and Industrial Site (OIS), Caliskan malls will increase Turkey’s and Mexico were exempted restart steel capacity or build Since the beginning of his quantitative hedge fund told Anadolu Agency. exports significantly, adding from the additional aluminum new plants in the country. administration, Trump has used Engineers Gate a short while While building of malls in each mall will see huge amount tariffs. As for the steel tariffs, While steel prices initially tariffs – and the threat of them later. Dubai and the US was of sales figures in a short period. exemptions were allowed for rose, they’re down about 30 – to affect policy. Engineers Gate’s average annual gains since inception were 5 percent after fees, Bloomberg UK finance sector ready to wave Brexit white flag amid ‘fish for finance’ talk reported in October. REUTERS — LONDON Europe. Until now, financial phase-two negotiations,” one financial services export market, Canada Pension Plan firms running EU operations banking source told Reuters. worth about £26bn annually. Investment Board, one of Britain’s finance sector is losing from Britain believed that tech- “As one official put it to me, Since the 2016 Brexit vote, Engineers Gate’s five hope of securing even basic nical assessments by EU banking, if ‘fish for financial services’ is the sector has reorganised to investors, had grown frus- access to European Union insurance and markets regu- going badly, this will impact the preserve a foothold in the EU, trated with its low returns markets from December 31, as lators would be enough judge UK Commission’s willingness to launching or beefing up subsid- and was scrutinizing its talk that the EU wants UK fishing rules ‘equivalent’ to those gov- grant equivalence.” The fishing iaries and relocating staff and investment, people familiar rights in exchange draws the erning EU-based firms, granting industry is valued at about 169 capital. Many banks and money with the matter said in industry into a political struggle them market access after times less than financial services managers are preparing for a October. The pension between the bloc and its December. and official data shows it further transfer of resources declined to comment Friday. departing member. But banking sources say the employs just 8,000 people com- after a transition period ends in Hopes were high that Prime EU’s executive now sees things pared to more than a million in December. Minister Boris Johnson would differently. Sources from three finance. Consultants EY said this prioritise the financial sector – international banks fear that But regaining control of Brit- week that around 7,000 Britain’s largest export industry access will depend on a broader ain’s rich fishing waters was a financial services jobs will move (pictured) said last week that and biggest corporate tax gen- trade-off such as Britain allowing totem for Brexit campaigners. from Britain to staff new EU Britain would not be a rule-taker erator – in trade talks. But bank fishing in its waters – a con- A European Commission hubs. after Brexit, even though some sources say a push by the EU for cession they feel the government spokesman referred to a January Failing to obtain equivalence businesses could suffer from reg- fishing access to UK waters and is reluctant to make. EU document saying the bloc could add risk-management, ulatory divergence. London’s stance that it will “We’re now hearing very and Britain should endeavour to compliance, middle and back He wants “outcomes-based” diverge from EU rules are explicitly – it’s not even the complete equivalence assess- office roles to that figure, as well equivalence in financial services, prompting them to review hard- rumour mill – the European ments before June 30. He as trading and client-facing jobs, meaning UK rules need not be Brexit plans that could see more Commission has said these are declined to comment further. the sources said. identical to those in the EU but jobs than anticipated move to politically linked to progress in The EU is Britain’s biggest Finance minister Sajid Javid should have the same effect. 20 BUSINESS SUNDAY 26 JANUARY 2020

In the January 21-23 Fed seen holding rates steady, poll, the mean forecast from 28 respondents predicted no move in ending bill purchases by June the federal funds rate BLOOMBERG — WASHINGTON/ NEW Treasury bonds, known as quan- until at least 2022, YORK titative easing, that were aimed at lowering borrowing costs and the same as the mean Federal Reserve policy makers stimulating the economy. forecast from a similar will keep interest rates on hold Despite that, many market this year and next, and will wind commentators have credited the survey in December. up their efforts to boost excess recent re-expansion of the Fed’s bank reserves by June, economists balance sheet with boosting stock said in a Bloomberg survey. prices. In the survey, 68 percent resolution to Brexit uncertainties. In the January 21-23 poll, the of economists agreed the pur- The proportion of respondents mean forecast from 28 respondents chases have lifted equities. That’s saying risks to inflation and predicted no move in the federal up from 55 percent of those asked growth were to the downside fell funds rate until at least 2022, the the same question in December, to 52 percent from 77 percent in same as the mean forecast from a though many respondents indi- December. In addition, the econ- similar survey in December. The monthly purchases rather than cated there was no rational con- omists’ median response put the target range for the central bank’s stop them suddenly. The Fed has nection between T-bill purchases probability that the Fed would be benchmark rate is currently at 1.5 been buying $60bn in T-bills each and higher stock valuations. forced to cut rates to zero in 2020 percent-1.75 percent. month since October. “Bill purchases are not tech- – a recession scenario – at 15 Fed officials will meeting A scarcity of bank reserves was nically QE, but the Fed has lost percent, down from 20 percent. January 28-29 in Washington. blamed for an unexpected spike that communication battle,” About a third of respondents After the last session of the in overnight funding rates in Sep- Roberto Perli (pictured), a former said they expected the Fed to Federal Open Market Committee, tember. This led the fed funds rate Fed economist and partner at Cor- increase the rate of interest it pays Chairman Jerome Powell made to stray briefly out of its target nerstone Macro LLC in Wash- on bank reserves, known as IOER. clear he and his colleagues range. The new cash created by the ington. “Most investors think bill Such a technical move would shift wouldn’t move rates until there Fed’s T-bill purchases has since purchases are indeed QE and are the effective fed funds rate closer was a “material reassessment” of relieved that scarcity. The Fed, acting as if they were. The result to the mid-point of the central their outlook for the economy. intent on insuring an ample supply is that equity valuations are being bank’s target range. As of January Economists had a broad range of reserves, has said it will continue boosted beyond what’s justified 23, the effective rate was 1.55 of forecasts for when the Fed the purchases at least into the by current earnings forecasts and percent, close to its lower bound. would stop buying Treasury bills, second quarter. economic conditions.” Economists In the past the Fed done the though June 2020 received the Central bank officials have made clear they believe the US reverse, lowering IOER relative highest response at 43 percent. emphasized the difference economy is on firmer ground than to the target range when the Respondents overwhelmingly between this program and its past last year, likely due to an easing effective rate threatened to rise expected officials will taper the purchases of longer-term of trade tensions and an apparent above the upper bound. Dollar rises vs euro as European PMI data fails to impress REUTERS — NEW YORK $1.1029. “The move partly reflected The dollar erased gains trading at its lowest levels since a phase of broader euro weakness December 2. The dollar rose to a near eight- following the release of the flash against the Japanese The dollar erased gains against week high against the euro on Eurozone January PMI data yen to trade down 0.15 the Japanese yen to trade down 0.15 Friday as lukewarm European PMI showing a miss in the composite percent after the release percent after the release of January data added to the broader market headline, at 50.9, despite a firm services and manufacturing PMIs conviction that European central German reading,” Jonathan of January services and from Markit showed the US man- bank policymakers will maintain a Coughtrey, managing director, at manufacturing PMIs ufacturing sector continuing to face loose monetary policy for the near Action Economics said in a note. from Markit showed pressure. future. The survey data comes a day Demand for the safe-haven Eurozone business activity after the European Central Bank did the US manufacturing Japanese yen, remained muted remained lackluster with the IHS not make any policy change, sector continuing to face even as China shut a part of the Markit’s Euro Zone Composite standing by its pledge to keep pressure. Great Wall and suspended public Flash Purchasing Managers’ Index buying bonds and, if needed, cut transport in 10 cities in a bid to (PMI), seen as a good gauge of eco- interest rates until euro zone contain a virus that has killed 26 nomic health, holding at 50.9 in inflation headed back to its goal. the rest of the year, the 160-basis- people and infected more than 800. January but missing the median Friday’s data added to expec- point plus interest rate differential Sterling retreated on Friday, prediction in a Reuters poll for 51.2. tations that a rate hike is ruled out in benchmark interest rates after initially strengthening, as some That followed an earlier PMI for the rest of the year, with Nordea between the eurozone and United investors still expected an interest from Germany, Europe’s largest analysts expecting a 10-basis-point States is expected to drive the single rate cut next week even though economy, which showed the increase only in the second quarter currency lower. business surveys pointed to a post- private sector gained momentum. of 2023. Though there are no The euro is set for its worst start election bounce in the UK economy. The euro was 0.21 percent expectations for a rate hike from to the year in five years, down 1.5 The pound was 0.3 percent lower lower against the greenback at the US Federal Reserve as well for percent so far this month, and against the greenback.

CROSSWORD MALL ROYAL PLAZA Shylock (2D/Malayalam) 2:00 & 9:00pm Shylock (2D/Malayalam) 2:00, 5:45 & 11:30pm Panga (2D/Hindi) 2:00pm; Disco Raja (2D/Telugu) Disco Raja (2D/Telugu) 2:30pm 4:30pm; Street Dancer 3D (2D/Hindi) 6:00 & 8:45pm Anjaam Pathira (2D/Malayalam) 8:45 & 11:00pm Toy Guardians (2D/Animation) 2:30pm The Turning (2D/Horror) 7:00pm Dolittle (2D/Comedy) 4:15pm Panga (2D/Hindi) 4:30pm Anjaam Pathira (2D/Malayalam) 4:30 & 11:30pm Street Dancer 3D (2D/Hindi) 8:15 & 11:30pm Frozen II (2D/Comedy) 7:00pm Al Nihaya A.K.A The End (2D/Action) 5:15pm The Gentlemen (2D/Action) 7:00pm Just Mercy (2D/Drama) 7:00pm Just Mercy (2D/Drama) 7:00pm The Gentlemen (2D/Action) 9:30pm The Last Full Measure (2D/Drama) 9:30pm Toy Guardians (2D/Animation) 2:15pm The Turning (2D/Horror) 11:30pm Frozen II (2D/Comedy) 4:00pm LANDMARK FLIK Mirqab Mall Toy Guardians (2D/Animation) 2:00pm Shylock (2D/Malayalam) 2:00, 6:15 & 11:30pm 1917 (2D/Crime) 3:10pm Street Dancer 3D (2D/Hindi) 2:30, 8;45 & 11:30pm Anjaam Pathira (2D/Malayalam) 4:40, 11:40pm Disco Raja (2D/Telugu) 3:45pm Anjaam Pathira (2D/Malayalam) 4:30 & 9:00pm Bad Boys For Life (2D/Action) 10:40am, 1:10, 2:10, 3:35, 6:00, 7:00, The Turning (2D/Horror) 7:15pm 8:30, 9:30, 11:00pm & 12:00 midnight Frozen II (2D/Comedy) 5:15pm Dolittle (2D/Comedy) 10:10am, 11:00am, 1:00, 3:00, 5:00, 6:20, The Last Full Measure (2D/Drama) 7:00pm 8:20, 10:20pm Panga (2D/Hindi) 9:00pm Just Mercy (2D/Drama) 11:30pm Jumanji: The Next Level (2D/Action) 11:05, 1:30 & 3:55pm Just Mercy (2D/Drama) 12:10, 5:10, 7:25 & 8:00pm AL KHOR Panga (2D/Hindi) 2:00 & 7:35pm Spies in Disguise (2D/Animation) 10:00am & 12:00pm Anjaam Pathira (2D/Malayalam) 10:45, 4:00 & 9:15pm Street Dancer 3D (2D/Hindi) 12:20, 3:35, & 8:40pm Panga (2D/Hindi) 12:15, 6:00 & 11:45pm The Gentlemen (2D/Action) 12:00, 2:15, 4:30, 6:45, 9:00 & 11:15pm The Turning (2D/Horror) 12:15, 5:00 & 9:45pm The Last Full Measure (2D/Drama) 2:55 & 10:40pm Shylock (2D/Malayalam) 1:30, 6:45 & 12:00 midnight The Turning (2D/Horror) 1:15, 5:30, 10:05pm & 0:05am Street Dancer 3D (2D/Hindi) 3:00 & 8:45pm The Gentlemen (2D/Action) 2:30, 7;15 & 12:00pm Underwater (2D/Action) 0:20am

ROXY ASIAN TOWN Anjaam Pathira (2D/Malayalam) 4:00 & 10:00pm Anjaam Pathira (2D/Malayalam) 6:00, 8:45 & 11:30pm Bad Boys For Life (2D/Action) 12:30 & 5:30pm Shylock (2D/Malayalam) 4:00, 6:00, 9;15 & 11;45pm Disco Raja (2D/Telugu) 1:00 & 7:00pm Street Dancer 3D (2D/Hindi) 6:30pm Dolittle (2D/Comedy) 12:30, 2:30, 4:40 & 6:50pm Panga (2D/Hindi) 6:15pm Panga (2D/Hindi) 12:30 & 6:00pm Street Dancer 3D (2D/Hindi) 3:00, 8:40 & 11:30pm The Gentlemen (2D/Action) 1:00, 3:00, 5:40, 10:00 & 10:40pm The Turning (2D/Horror) 3:30pm

JUST MERCY

Just Mercy is a 2019 American legal drama film directed by Destin Daniel Cretton, and starring Michael B. Jordan, Jamie Foxx, Rob Morgan, Tim Blake Nelson, Rafe Spall, and Brie Larson.