TROUBLES AHEAD | Page 3 China’s April exports rebound but outlook remains grim

Friday, May 8, 2020 Ramadan 15, 1441 AH ACTING AS NECESSARY: Page 8 GULF TIMES BoE: More stimulus possible in June as BUSINESS UK economy craters

QFB income rises 7% to QR34.2mn in Q1

Qatar posts 90%-plus Qatar First Bank posted a profit of QR12.3mn in the first three months of this year, QFB said yesterday. In the same period last year QFB had registered a profit of QR3.2mn. LNG liquefaction rates “However, in line with the accounting standards and best practices in place by regional and international banks, and in view of the global macroeconomic conditions, one-time reserve in 2019, says IGU provisions have been made in order to confront the risks By Pratap John pinned by the expectation of of the Covid-19 crisis. This re- Business Editor growing LNG demand globally, sulted in a recoded net loss creating the need for additional of QR191.6mn, arising from liquefaction capacity. This will making these Covid-19 con- atar is among the LNG also lead to competition to se- servative provisions, which exporting countries that cure EPC capacity, as project amounted to QR203.9mn,” QFB is currently working on Qhave achieved utilisation developers aim to enter the mar- QFB said. developing new products and rates of more than 90% in lique- ket by the mid-2020s in order to Additionally, in line with exploring good investment faction capacity in 2019. capture growing demand. bank’s adopted strat- opportunities In all, 10 of the total 22 LNG However, as the global LNG egy on cost efficiency, total exporting countries achieved market gets increasingly com- expenses were decreased by 15% to QR22.9mn compared to same this utilisation rate, the Interna- petitive and shorter-term con- period of 2019. tional Gas Union (IGU) has said tracts or spot deliveries become Setting aside Covid-19 “negative” impact, total income also increased in a report. more common over time, LNG by 7% to QR34.2mn. Global liquefaction capacity projects are taking more invest- QFB chairman Sheikh Faisal bin Thani al-Thani said, “Despite the reached 430.5mn tonnes at the ment risks, taking FIDs without bank’s good operational performance over the first quarter where the end of 2019 and the utilisation securing a significant number overall adopted strategy objectives were realised, the unexpected rate was on average 81.4%. of long-term SPAs. Golden Pass crisis of the Covid-19 had a significant negative impact on the an- Numerous factors affect the LNG moved forward with FID in nounced results. utilisation of LNG facilities glo- 2019, without announcing any “It entailed one-off provisions in line with the best practices in place bally, it said. Feed gas availability long-term offtake contracts. by regional and international banks, however, the good operational is one of the most common fac- Ocean LNG, a joint venture results is a clear indication of the success of the new strategy and its tors limiting the output capacity established by Qatar Petroleum profitability even in light of these unfavorable and unprecedented of existing LNG facilities. This file photo taken on February 6, 2017 shows the Ras Laffan Industrial City, Qatar’s principal site for and ExxonMobil, is responsi- macroeconomic conditions. The success of the strategy invites us to Indonesia’s Bontang LNG un- production of liquefied natural gas and gas-to-liquids, some 80km north of Doha. Qatar is among the ble for marketing the produced adopt an optimistic outlook for the bank and its business model.” derwent a production downturn LNG exporting countries that have achieved utilisation rates of more than 90% in liquefaction capacity in LNG. The sanctioning of LNG Furthermore, fee income from structured products has increased by due to declining gas resources 2019, according to the IGU. Canada in 2018 was on a similar 27% compared with the same period of 2019. QFB will continue to from the Mahakam block, the basis and the project was fully harness the opportunities created through revised strategy where the IGU said in its “2020 World LNG lisation of a few LNG facilities. Technical challenges affect a prolonged shutdown in mid- equity financed, rather than debt key priority will be sustainable organic growth of the bank’s customer report”. Idku LNG reached full export ca- the utilisation of existing LNG January 2019 due to mechani- financing backed by long-term base of high net worth individuals, institutional investors and govern- The utilisation of Algeria’s pacity in December 2019 for the facilities as well, it said. cal issues. Unexpected technical offtake agreements. ment related entities, the bank said. LNG export facilities sustained first time in six years, owing to In June 2019, Pluto LNG ex- problems can also lead to shorter Arctic LNG 2 reached FID The bank said it is currently working on developing new products low levels, partly due to declin- gas production from new fields perienced technical problems (several-day) shutdowns, al- with an expectation of equity and exploring good investment opportunities. It also aims to enhance ing output from the large gas coming online. related to its mixed refrigerant though the potential impact on partners’ offtaking LNG produc- product portfolio and diversify investment options it offers to custom- field Hassi R’Mel and delayed Atlantic LNG in Trinidad and compressor upon restart from utilisation can sometimes be tion proportionate to their own- ers. It extremely exercise due diligence to assess, review and analyse new field development in the Tobago registered 91.1% utilisa- turnaround maintenance, lead- offset by production creep ership stakes, and the project any variables that arise from changing macroeconomic conditions in southwest region. In contrast, tion in 2019 after a period of de- ing to an unplanned outage of According to the IGU, the may market a significant portion order to achieve discounted acquisitions of assets as good opportuni- debottlenecking of upstream gas cline, thanks to the ramp-up of the facility. record volume of sanctioned of production via spot deliveries, ties are usually availed in times of crisis. supplies have increased the uti- new fields. Gorgon LNG Train 3 suffered liquefaction projects is under- the IGU noted.

Bank brokerages account for 46% of QSE trade turnover in April Qatar shares edge higher to

By Santhosh V Perumal year to QR15.5bn in the first four months of Business Reporter this year. The deals through it were down 3.45% to 483,566 as on April 30, 2020. settle near the 8,800 level Dlala Brokerage, a stock broking business The commercial banks’ brokerage arm of Dlala Holding, accounted for 9.35% businesses accounted for more than 46% of trade turnover (QR4.75bn), which rose By Santhosh V Perumal telecom (0.8%), banks and financial services entially to QR19.56mn against QR31.76mn on of the trade turnover on the Qatar Stock 14.18% year-on-year during January-April Business Reporter (0.3%), consumer goods and services (0.23%) and Wednesday. Exchange (QSE) in April this year, according 2020. The deals through it increased 31.2% industrials (0.09%); whereas insurance was down Arab institutions had no major exposure com- to the bourse’s data. to 90,578 as on April 30, 2019. 0.11%. pared with net buyers of QR0.06mn the previous The QNB subsidiary QNBFS’ trade turnover Qatar Securities accounted for 8.53% of he Qatar Stock Exchange yesterday gained Major gainers included Gulf Warehousing, Mi- day. amounted to QR15.25bn, which constituted trade turnover (QR4.34bn), which saw a 40 points to settle a tad below 8,800 levels laha, Nakilat, United Development Company, Total trade volumes fell 43% to 215mn shares, 29.99% of the total traded value in January- 6.87% slump on a yearly basis. The deals Tmainly on buying interests in transport and Qatar National Cement, Mesaieed Petrochemi- value by 36% to QR331.51mn and transactions by April; gaining 18.03% year-on-year. The through it however expanded 55.88% to real estate equities. cal Holding, Qamco, Widam Food, Qatar Islamic 27% to 10,239. transactions more than tripled to 268,413 at 113,015 at the end of April 30, 2020. Foreign funds were seen bullish as the 20-stock Bank, QIIB and Al Khaliji; even as Ezdan, Qatar The telecom sector reported a 52% plunge in the end of April 30, 2020. Islamic Securities’ market share was 3.02% Qatar Index settled 0.46% higher at 8,799.3 points, German Company for Medical Devices, Qatari In- trade volume to 2.87mn equities, 52% in value to CBQFS, the stock broking arm of of trade turnover (QR1.53bn), growing although it touched a high of 8,842 points intraday. vestors Group, Al Khaleej Takaful and Gulf Inter- QR8.06mn and 36% in deals to 604. Commercial Bank, accounted for 11.45% of 75.86% year-on-year in the review period. The weakened net selling pressure by foreign national Services were among the losers. The real estate sector’s trade volume plum- trade turnover (QR5.82bn), which however The deals by the brokerage shot up 36.67% individuals also had its impact on the bourse, Foreign institutions turned net buyers to the meted 52% to 77.03mn stocks, value by 49% to saw a yearly 6.88% decline. But it witnessed to 27,977 until April 30, 2020. whose year-to-date losses were at 15.6%. Market tune of QR4.77mn against net sellers of QR50.4mn QR73.56mn and transactions by 36% to 1,752. a 69.87% growth in transactions to 187,453 The Gulf Investments Group’s share stood capitalisation saw QR88mn, or 0.18%, increase on Wednesday. The banks and financial services sector saw a 42% until April 30, 2020. at 2.34% of trading turnover (QR1.19bn), to QR499.58bn mainly owing to microcap seg- Foreign individuals’ net selling declined notice- shrinkage in trade volume to 22.14mn shares, 28% in The CBFS early this year launched its which shrank 32.39% year-on-year in the ments. ably to QR2.59mn compared to QR8.06mn the value to QR89.27mn and 21% in deals to 2,960. margin trading product, becoming the review period. There were a total of 20,823 Islamic stocks were seen gaining faster than the previous day. The industrials sector’s trade volume tanked first bank brokerage subsidiary in Qatar to transactions through it during January- other indices in the market, where local retail in- However, local retail investors were net sellers 39% to 69.51mn equities, value by 34% to launch such a product. April 2020, representing a 21.07% yearly vestors turned bearish and domestic funds contin- to the extent of QR15.25mn against net buyers of QR87.11mn and transactions by 24% to 2,661. Al-Ahli Brokerage, a subsidiary of Ahli shrinkage. ued to be net buyers but with lesser vigour. QR29.64mn on May 6. There was a 16% contraction in the insurance Bank, saw its trade turnover shrink The Qatar Financial Market Authority Trade turnover and volumes were on the decline Gulf individuals’ net selling grew considerably sector’s trade volume to 4.82mn stocks, 18% in 37.56% to QR2.46bn, cornering a market had approved the Group Securities and in the market, where the real estate and industrials to QR4.61mn compared to QR0.98mn on Wednes- value to QR9.26mn and 25% in deals to 193. share of 4.84% during January-April CBQIS as liquidity providers, while saying sectors together accounted for more than 68% of day. Gulf institutions were net sellers to the extent The consumer goods and services sector’s trade 2020. It registered a 21.59% shrinkage in other licenses are on the pipeline. In May the total trading volume. of QR1.06mn against net buyers of QR0.21mn the volume was down 10% to 31.33mn shares, value by transactions to 49,585 during the review 2013, the financial market regulator had The Total Return Index gained 0.46% to previous day. 5% to QR43.96mn and transactions by 10% to 1,190. period. approved the liquidity provision scheme 16,916.36 points, the All Share Index by 0.4% to Arab individuals turned net sellers to the tune of However, the transport sector’s trade volume The Group Securities’ share stood at 30.48% that can be carried out by the financial 2,735.88 points and the Al Rayan Islamic Index QR0.9mn compared with net buyers of QR0.57mn more than quadrupled to 73mn equities but on a and its trading turnover grew 5.8% year-on- services firms. (Price) by 0.78% to 1,958.02 points. on May 6. 51% dip in value to QR20.28mn and 42% in deals The transport index rose 1.7%, realty (1.53%), Domestic funds’ net buying declined influ- to 879. Gulf Times 2 Friday, May 8, 2020 BUSINESS

Bloomberg QuickTake Q&A Why a second wave of Covid-19 is already a worry

By John Lauerman spreads around the world, or large In the case of influenza, there’s the coronavirus, it wasn’t as contagious London parts of it, again. onset of cool weather, a factor that as the one responsible for Covid-19. 2. What makes the first wave may affect the coronavirus, too. Or the Its spread was mainly restricted to recede? pathogen can mutate. This is another hospitals and other settings where As authorities the world over consider feature of flu, which mutates more people came in close contact with the when to lift economy-crippling Influenza pandemics can be or less constantly. In the fall of 1918, a body fluids of infected patients. Ebola movement restrictions aimed at temporarily beaten back by the change second wave of the historic influenza is another pathogen relatively new curbing coronavirus infections, the of seasons, moving to the southern outbreak occurred and caused most to humans. There have been periodic fear on everyone’s minds can be hemisphere when the northern half of of the deaths in the pandemic. Some outbreaks in Africa, but while the virus expressed in two words: second wave. the globe heats up during its summer, researchers believe it was brought is highly contagious in some settings, The concern is that, once quelled, the and vice versa. The virus may also have about by a mutation that made the virus it hasn’t been sufficiently infectious pandemic will resurface with renewed infected a huge portion of people in again unrecognizable to most people’s to spread around the world like the strength, causing a repeat of rising most areas, giving them immunity from immune systems. Another important coronavirus. infections, swamped health systems re-infection and possibly creating so- variable is the movement of the virus to 5. What are the prospects and the necessity of lockdowns. called herd immunity, which protects populations that haven’t been exposed for second waves of 1. What’s a second wave? those who haven’t been infected by before and don’t have immunity. In coronavirus? curtailing the virus’s circulation. In the addition, the World Health Organization Pandemics are caused by new case of the coronavirus that causes said on April 24 that there’s no evidence There have been hints from China many people vulnerable to infection everyone is to scale up testing and pathogens that the vast majority of Covid-19, countries around the world yet that people who have recovered that a second wave is a risk. Some once they begin to venture out again, contact tracing. Health authorities humans have no immune protection have adopted movement restrictions from Covid-19 and have antibodies are areas of the country that were shut raising the prospect of second waves. need to find infected people, isolate against. That’s what allows them to on an unprecedented scale and social- protected from a second infection. down by the virus and then reopened 6. What could prevent them? them, and identify their recent become global outbreaks. Pandemics distancing measures that together 4. Why wasn’t there a second had restrictions reimposed in March contacts, so they can be tested as well are uncommon, but influenza is one of keep people far enough apart so that wave of Sars? because of new cases. Much of the rest The WHO has recommended lifting and isolated if necessary. Eventually, the more frequent causes. What often the virus can’t easily spread. of the world is still struggling to get the movement restrictions in stages it’s possible that enough people will happens is that a novel variant of flu 3. So how does a virus come The 2002-2003 outbreak of severe current wave under control. Most areas to test the effect of each before become exposed to the coronavirus virus spreads around the world and back? acute respiratory syndrome in that have contained the virus have moving to greater openness. In any that herd immunity will develop and it then recedes, kind of like a tsunami. A Asia never reached the scope of done so using movement restrictions, case, experts say, the key to keeping will stop spreading, or that a vaccine few months later, it comes back and There are a number of possibilities. a pandemic. Though caused by a which slow the virus’s spread but leave infections low without locking down against it will be licensed.

Turkish lira briefly hits Iraq faces budget battle record low

Reuters Istanbul

amid oil, virus fallout urkey’s lira briefly fell to a record low against the US dollar yesterday as investors Bloomberg Tfretted about falling currency reserves and London the need for foreign financing as the coronavirus pandemic drains the economy. Thursday’s fall to near 7.27 pushed it beyond s Iraq inches toward the the record low hit during a 2018 currency cri- formation of a new govern- sis and extended five sessions of declines as the Ament, the risks are stacking country sought to mitigate the economic impact up for Opec’s second-biggest crude of the outbreak, which has killed 3,584 people in producer. Turkey. Beyond the country’s long- It later recovered ground after the banking standing sectarian tensions, frayed watchdog announced a ban on lira transactions by relations with the Kurdish north BNP Paribas, Citibank and UBS, saying the banks and a bloated public wage bill, new were unable to fulfil Turkish lira liabilities in due Prime Minister Mustafa al-Kadhi- time. mi now has to grapple with a col- The state-owned Anadolu news agency had lapse in oil revenue and the fallout earlier reported that the watchdog was launching from the Covid-19 pandemic. legal action against London-based institutions it Little wonder that the country is said had mounted a “manipulative attack” on the seeking financial aid from the US Turkish lira. and is said to have asked the Inter- The lira stood at 7.1500 at 1244 GMT, firming national Monetary Fund for a de- 0.7%, having weakened as much as 1% to 7.2690. ferral of payments on some $546mn It has lost some 18% this year under pressure in loans. Its Eurobond yields aver- from the Covid-19 pandemic, with more than age 15.7%, easily the highest among 130,000 cases in Turkey. Middle Eastern governments, ac- Market concerns had been stoked by comments cording to Bloomberg Barclays in- from a Federal Reserve policy-maker, which trad- dexes. ers interpreted as ruling out a Fed swap line to All this just as Iraq prepares to cushion Ankara’s depleted reserves. meet a $294mn debt payment in Turkey’s Finance Minister Berat Albayrak July, including a capital installment voiced optimism in a conference call with in- on 2028 dollar bonds. Those date Workers transport merchandise piled on carts outside the Shorja market in Baghdad on May 4. Iraq is seeking financial aid from the US and is said to have vestors on Wednesday about sealing a swap from a 2006 plan to restructure asked the International Monetary Fund for a deferral of payments on some $546mn in loans. Its Eurobond yields average 15.7%, easily the highest among line deal for forex funding, but he gave few Saddam Hussein-era securities in Middle Eastern governments, according to Bloomberg Barclays indexes. details, several participants in the call told the wake of the US invasion in 2003. Reuters. Gross domestic product is fore- lars, then at least an agreement on up following the collapse in crude top of an annual coupon of 5.8%, Iraq’s handling of its liabilities Turkey has asked the US Federal Reserve and cast by the World Bank to contract deferral.” prices. “A shrinking revenue pie Iraq is set to start repaying 6.25% may guide international institu- other central banks for access to funds as its own 9.7% in 2020, after growing 4.4% Investors have been voting with due to low oil prices will prove to be of the original amount – or $168.75 tions, governments and private net foreign currency reserves have fallen to around in 2019. The IMF sees the budget their feet. The yield on the $2.7bn the most destabilizing factor over million – every six months, with the creditors who are coordinating ef- $28bn from $40bn so far this year, reaching as low shortfall ballooning to 22% of GDP, of government notes due in 2028 the next 12-18 months,” Ayham first instalment on July 15, accord- forts to pause debt payments for as $25bn two weeks ago. wider than anywhere except East has more than doubled to 14.3% Kamel, practice head or the Mid- ing to data compiled by Bloomberg. poor countries globally. Data on Thursday showed the Turkish Central Timor, Brunei and Tuvalu. since early March. Iraq’s bonds dle East and North Africa at Eura- Iraqi lawmakers approved early The Gulf nation may try to ben- Bank’s gross forex reserves stood at $51.46bn as of “Even if it avoids defaulting, have lost holders 22% this year, the sia Group in London. “Irrespective yesterday the government of former efit from that initiative and seek re- May 1, down from $52.66bn a week earlier. there’ll be problems further down worst performance after El Salva- of who is leading the government, spy chief al-Kadhimi, ending more lief in any form possible, according In the call with investors, Albayrak defended the road because the deficit’s going dor among countries graded B- by a large drop in revenues combined than six months of political dead- to Marcus Chenevix, a Middle East Ankara’s policies, saying Turkish reserves were to skyrocket,” said Anna Wilton, an S&P Global Ratings. with rampant corruption is bound lock. Among the 15 ministers ap- analyst at London-based TS Lom- more than adequate, according to participants on assistant director at Falanx Assynt, Optimists will point to the coun- to create problems.” proved, Ali Allawi was named bard. the call. a London-based consultancy that try’s reserves. Iraq is sitting on a The timing of the payment on finance minister, while the parlia- “It has a very strong record of As the lira weakened, Turkey published regu- provides geopolitical and business cash pile of about $66bn, testa- the bonds is ironic. The securities ment postponed voting on the oil successful debt negotiations – it lations yesterday that would punish institutions risk analysis. “Given the circum- ment to the approximately 4.6mn issued in 2006 were part of a Paris and foreign ministers. Four minis- is a country that historically been spreading “false or misleading information” in fi- stances, it will be able to secure barrels of crude it pumps each day. Club restructuring agreement, with ters were rejected, including trade, very good at playing off its various nancial markets, as the lira hit a record low against some help from the IMF. If not dol- But that money stream is drying an 80% write-off on principal. On justice, culture and agriculture. creditors,” Chenevix said. the US dollar.

Lebanon’s besieged banks scramble to avoid near total wipeout

Reuters and certainly it will without any pressure from the licenses. “What is the purpose?,” he said. “If the idea London/Beirut authorities,” said Association of Banks in Lebanon is to attract foreigner investors let them invest in chairman Salim Sfeir. the existing banks.” But not all within the industry Sfeir also expressed concern about unemployment are against the proposals. Only a handful of Lebanese lenders are expected to that would stem from a further reduction of a sec- A financial sector source said it was a good plan emerge from an economic rescue plan that many tor, which has shrunk from 125 banks before 1994 to that needed fine-tuning. banks, who are among the government’s big- around 40, but remains a big employer. For example, investors providing fresh equity to gest creditors, oppose because it would wipe out The association is working on a financial rescue help recapitalise banks would be unlikely to accept $20.6bn in shareholder capital. plan that would preserve some of banks’ capital a junior position to holders of subordinated debt, Lebanon is trying to enlist the International Mon- rather than writing it off as the government has he said. etary Fund’s help and restructure around $90bn in proposed. “There’s still a state of denial in Lebanon,” the debt to end an economic crisis which has included a Until the crisis, Lebanese banks helped fund the source said. “Some people are not accepting sovereign default, a currency crash and widespread government by drawing deposits into the financial the idea you have to restructure bank balance public protests. sector from the country’s scattered diaspora, lead- sheets and that it will have to have an impact Large depositors will have to share the burden, with ing to a huge growth of the sector. on deposits and are trying to save the equity of the option to convert part of their deposits into Prime Minister Hassan Diab has been critical of banks.” Lebanese police stand outside the entrance to the Association of Banks in downtown Beirut (file). their bank’s capital or equity stakes in a newly- the size of the banking sector, saying in March the Arqaam Capital said in a research note it is assum- Only a handful of Lebanese lenders are expected to emerge from an economic rescue plan that established recovery fund to receive what the country did not need one that is four times the size ing a 45% bail-in of all deposits, which would apply many banks, who are among the government’s biggest creditors, oppose because it would wipe government has described as “ill-gotten assets”, of Lebanon’s economy. to all those over $100,000, with smaller depositors out $20.6bn in shareholder capital. which it says it intends to recover. In order to help the economy restart, the govern- protected under the scheme. Like other creditors, banks will have to accept hair- ment’s plan envisages the issuance of five new Some are questioning the legal standing of the This would apply to the proposed restructuring of led Lebanese banks, which are grappling with a cuts on their holdings of government Eurobonds commercial banking licences, subject to having plans and Lebanon’s banking association has hired the banking sector, the central bank and Lebanon’s hard currency crunch, to impose tight controls on and local currency bonds, as well as losses on their equity of at least $200mn, 50% of which should be the law firm DLA Piper to advise it on key elements public debt, he said, in addition to any changes in withdrawals and transfers abroad. exposure to the central bank under the government fresh money. such as the depositor bail-in. taxation and any deal with the IMF. And Lebanon’s central bank last month allowed plan, which calls for the restructuring and recapitali- The Lebanese central bank’s website lists 142 banks “A major part of the plan — if it is going to be ex- The commission is reviewing the government’s deposits of $3,000 or less to be withdrawn in sation of the country’s financial sector. supervised by the central bank, although some of ecuted — needs laws,” Ibrahim Kanaan, chairman of plan and will propose amendments, Kanaan Lebanese pounds, but only at a “market” rate rather “If our banking sector is going to be reduced in these are local units of foreign entities. parliament’s budget and financial affairs commis- added. than at the currency’s official rate, which is pegged terms of numbers of banks, let it come normally One banker questioned the logic of offering new sion, told Reuters on Wednesday. The economic crisis and uncertainty have already to the dollar. Gulf Times Friday, May 8, 2020 3 BUSINESS

Philippine China’s exports rebound economy shrinks first time in April but outlook grim in two

Reuters Beijing decades

hina’s exports unexpectedly rose AFP in April for the first time this Manila Cyear as factories raced to make up for lost sales due to the coronavirus pandemic, but a big fall in imports sig- he Philippine economy nalled more trouble ahead as the global contracted for the first economy sinks into recession. Ttime in more than two April’s better-than-expected exports decades during the first quarter, helped Asian shares trim early losses, but officials warned yesterday but analysts say China’s trade outlook that the worst was likely yet to remains bleak as major economies re- come as the nation reels from the main in the grip of the health crisis with coronavirus pandemic. rising infection numbers and deaths. Gross domestic product Overseas shipments in April rose shrank 0.2% in January-March, 3.5% from a year earlier, marking the its worst performance since first positive growth since December 1998 during the Asian financial last year, customs data showed yester- crisis as the Philippines joins a day. long line of countries to report That compared with a 15.7% drop devastating figures as a result of forecast in a Reuters poll and a 6.6% widespread lockdowns that have plunge in March. shut down economies. The increase was driven in part by “Containing the spread of the rising exports of medical equipment, virus and saving hundreds of traditional Chinese medicine and tex- thousands of lives, though the tiles including masks. imposition of the (quarantine) China exported millions of tonnes of has come at great cost to the medical products worth 71.2bn yuan Philippine economy,” Economic ($10bn) in the March-April period, ac- Planning Acting Secretary Karl cording to the customs agency. Chua said. The January eruption The daily export value of medical of the Taal volcano, which forced supplies jumped by more than three the temporary closure of Ma- times last month. nila’s main international airport, Some economists also attributed also took a toll. the rise in exports to factory closures Chua said there would be elsewhere, leading to a surge in import more pain and the economy demand, just as China’s manufacturers could further shrink in the sec- reopened after extended shutdowns due Buses wait to be exported in Lianyungang port. China’s overseas shipments in April rose 3.5% from a year earlier, marking the first positive growth since December last ond quarter. to the virus outbreak. year, customs data showed yesterday. “The first quarter, I think, is “Not only was the global demand still respectable given the very taking a hit from the coronavirus, but navirus crisis ravages the global econo- and falling profits, and some have let navirus under control domestically, multi-year lows last month.” Customs difficult environment that we are the shock to the production side was my. workers go as part of cost-cutting ef- China’s economy has begun to open up data showed yesterday that China im- in. The second quarter might be actually more pronounced last month,” “Given the continued contraction forts. Imports sank 14.2% from a year again as authorities loosen draconian ported $36.7bn goods from the United worse,” he said. said Nie Wen, economist at Shanghai- of export orders in March and April – earlier, the biggest contraction since restrictions including stay-at-home States in the first four months of the Growth in consumer spend- based Hwabao Trust. as suggested by the sharp drop in new January 2016 and below market expec- orders, but economists say the recovery year. ing, which is the Philippines’ key A better export performance than ex- export orders sub-index of official and tations of an 11.2% drop. has been disappointing. That compared with a target of Chi- economic driver, slowed to just pected could extend into May as some Caixin manufacturing PMIs – we do not They had fallen 0.9% the previous “There is further downside for im- nese purchases worth about $218bn this 0.2% during the period, hit by production constraints remain in place think the improvement in April’s export month. ports too given the slow domestic re- year under the first-phase trade deal. the closure of malls and shop- for other economies, Nie said. growth is sustainable,” Nomura’s ana- The soft imports reading was due to covery, already elevated inventory lev- US President Donald Trump said he ping centres in areas under lock- “But I’m particularly worried about lysts said in a note. weak domestic demand and declines in els, and the fact that over a quarter of was watching closely whether China down. the slump in foreign demand – the im- Both official and private factory sur- commodity prices. imports feed into China’s export sec- would meet its commitments to in- Many areas in the Philippines pact would only be fully felt later on as veys for April showed export orders col- The shutdowns outside China also tor,” said Julian Evans-Pritchard, senior crease US goods purchases under the have been under quarantine world factories reopen.” lapsed, even as some countries started dealt a heavy supply shock to the coun- China economist at Capital Economics. early phase trade deal. since mid-March, and will re- In light of the rebound in April ship- easing lockdowns. Many Chinese facto- try’s importers. “The threat of additional US tariffs China could roll out more support main so until at least mid-May, ments, Nomura raised its forecasts for ries are grappling with slashed or can- China’s trade surplus for the period on Chinese goods shouldn’t be ignored measures to stimulate domestic de- to contain the spread of the vi- China’s exports to minus 22% for May celled overseas orders after reopening stood at $45.34bn, compared with an given the likelihood that the ‘phase one’ mand in the event that tensions with rus, including Manila and sur- and June from minus 30% previously, as global demand stays tepid. expected $6.35bn surplus and a surplus trade deal soon falls apart – imports the United States flare up again, Nie rounding areas where most eco- but still deep in contraction as the coro- They are faced with rising inventory of $19.93bn in March. With the coro- from the United States remained near from Hwabao Trust said. nomic activity takes place. “The current lockdown... will undoubtedly drag GDP deep into contraction as we see how destructive the enhanced com- munity quarantine can be for the In gloomy oil market, India pump prices echo $100-plus crude consumption-driven economy,” ING senior economist Nicholas Mapa said. Bloomberg worsening public finances. Diesel in the citizens – from factory owners to farm- That means fuel retailers like Indian than 18-year low of $19.33 on April 21. But Chua added that the New Delhi country’s capital now costs 20% more ers – at a time when millions have lost Oil Corp, Bharat Petroleum Corp and The steep increase in taxes on the country could bounce back in than it did in 2014, with levies account- their jobs and are living on handouts Hindustan Petroleum Corp would have two fuels, which account for more than the second half of the year as it ing for nearly half the retail price, while from the government or the charity of to absorb the higher duties. half of India’s oil demand, comes at gradually reopens businesses, rude oil has plummeted to about gasoline is roughly priced the same as neighbours. The companies’ shares plunged. a time when demand has plunged by adding: “With the progress that $30 a barrel from $115 when under Modi’s predecessor. The latest increase came close to Taxes collected by the federal gov- about 70% following the world’s big- we are seeing on the health side, CPrime Minister Narendra Modi Higher prices help avoid unneces- midnight on Tuesday, when the federal ernment on diesel have swelled by sev- gest lockdown. there is a very strong chance that first came to power six years ago, but sary use of the polluting fuel, authori- government imposed an additional levy en times in the last six years while those Asia’s third-largest economy is seen we will have a good recovery.” Indian consumers are yet to enjoy the ties have said in the past. of Rs13 per liter on diesel and 10 rupees on gasoline have nearly tripled over the hurtling toward its first full-year con- The Philippines has detected benefits of the plunge. But, as consumption takes a dan- on gasoline. same period. traction since 1980, as several busi- more than 10,000 coronavirus Modi’s administration has repeat- gerous dip amid the coronavirus lock- Pump prices will, however, not Brent was trading near $29 a barrel nesses shut, forcing 122mn people out cases and more than 600 people edly raised taxes on fuel to cushion down, reducing costs could have helped change, the government said. yesterday after recovering from a more of work last month have died.

Japan tax collections GSK sells $3.4bn Hindustan Unilever stake

Reuters “One could argue that the stock was a tad fall most since June Hong Kong overvalued at the 2,600 level, but at 1,900, it is reasonably valued,” said Ajay Bodke of Mumbai-based portfolio management service Reuters ceipts rose 1.2% on the year, GlaxoSmithKline has sold its stake in Uni- company Prabhudas Lilladher. Tokyo reflecting revenue from com- lever’s Indian business for $3.4bn, marking “In an environment of heightened risk panies that settled accounts in India’s largest block trade, which will help the aversion, people continue to look at sectors January, before the virus had British company in its goal of reinvigorating such as consumer staples, healthcare and IT apan’s tax revenue fell disrupted the economy fur- its drug development pipeline. as safe havens.” 9.2% in the year to March ther. The transaction GSK announced yesterday HSBC Holdings, JPMorgan and Morgan Jfor the biggest annual de- Analysts anticipate much comes as it pursues a two-year programme Stanley were the bookrunners on the deal. cline since last June, hit by a bleaker tax collections in com- to split into two entities after it made costly GSK’s decision could also inject some delay in the due date because ing months, from companies bets on experimental cancer treatments and momentum into India’s equity capital markets of the coronavirus pandemic, that closed the books in March, future cell and gene therapies amid sluggish which have struggled in line with other major the finance ministry said, the end of the fiscal year, when revenue growth. financial markets as a result of the coronavi- amid worries of bigger drops the virus took a greater eco- The drugmaker is cashing in a 5.7% rus pandemic. ahead. nomic toll. stake it took in Hindustan Unilever, which There has been $6bn worth of equity capi- While technical factors Total tax revenue un- produces everything from deodorant to soup, tal market deals in India so far in 2020, down were blamed for the March til March stood at ¥46.1tn as payment for the sale of its malted drink from $8.52bn during the same time list year, decline, analysts are bracing ($432.86bn), just 1.8% short of brand Horlicks and other nutrition brands to according to Refinitiv. for further slides in coming the figure a year ago. Unilever in 2018. The data showed the rate of activity in months, as the virus impact The pandemic has pushed The 133.77mn shares were offloaded on 2020 is the slowest since 2017. plays out in the world’s third back by a month, to April 16, average for Rs1,905, according to a statement In comparison, Hong Kong’s equity capital largest economy. the deadline for filing annual from GlaxoSmithKline. markets have seen $12.8bn worth of activity income- and gift-tax returns Potential investors were earlier told the this year. Total tax revenue until to avert an end of year rush to shares would be sold in a range of Rs1,850 Earlier this year, GSK launched a two-year March stood at ¥46.1tn file returns, so aggravating in- to Rs1,950, which was a 3%-8% discount to The logo of GlaxoSmithKline sits on the exterior of the pharmaceutical company’s programme to split into two entities, separat- ($432.86bn), just 1.8% fection. Wednesday’s closing price of Rs2,010.20. headquarters in London. Earlier this year, GSK launched a two-year programme to split ing the core prescription drugs and vaccines short of the figure a year The delay in reporting in- In the statement, GSK said it would now re- into two entities, separating the core prescription drugs and vaccines business from business from an enlarged over-the-counter ago come tax and gift tax caused ceive net proceeds of Rs2.9bn ($3.59bn) from an enlarged over-the-counter products business that was merged with a Pfizer unit. products business that was merged with a receipts of such taxes to drop the stake sale and the sale of its Bangladesh Pfizer unit. The spectre of dwindling 45.6% to ¥233bn, and 23.1% to business, which is expected to close later this 2015, according to Refinitiv. On a global basis, dian funds – participated in the deal, a source It is considering more divestments to fund tax revenue fuels concern over ¥240bn, respectively. year. the Glaxo block trade will be the 10th ever with direct knowledge of the matter said. the costs of the separation. more debt issuance to make More than 3.76mn virus in- It said the recent Hindustan Unilever share biggest, according to the data provider. Shares of Mumbai-listed Hindustan Uni- Having sold travel vaccines to Bavarian up the income gap, which will, fections have been reported price gains led to better than expected sale The largest ever block trade remains lever, which fell as much as 5.38% to Rs1,902, Nordic for up to €955mn ($1.03bn)in October in turn, strain the industrial worldwide, with more than proceeds. Naspers selling $9.8bn worth of Tencent recouped some of those losses to close down last year, the British group is looking into world’s heaviest public debt 262,458 deaths. The deal eclipses the previous block trade stock in Hong Kong in March 2018. 0.9% yesterday. shedding more assets, starting with a review burden at more than twice the Japan extended its state of record in India when Daiichi Sankyo sold its More than 100 institutional investors – The company declined to comment on the of its prescription dermatology business with size of Japan’s $5tn economy. emergency to May 31 as infec- $3.18bn stake in Sun Pharmaceuticals in April 80% foreign investors and 20% domestic In- stake sale. about £200mn-£300mn in annual sales. In March corporate tax re- tions had not slowed enough. Gulf Times 4 Friday, May 8, 2020 BUSINESS

Indian Asia equities turn negative as stocks fall amid virus economic reality bites lack of

AFP stimulus Hong Kong

Bloomberg sian markets dropped yesterday Mumbai as the economic reality of the Acoronavirus crisis became even starker, and China-US relations soured, ndian stocks fell for a third overshadowing recent optimism over day in four as a lack of gov- the easing of lockdown measures. Iernment support measures With countries from Asia-Pacific to for ailing businesses weighed on Europe and US states reopening their investor sentiment amid weak shattered economies, global equi- economic data. ties have enjoyed a strong revival after The S&P BSE Sensex dropped crashing in March, with oil also getting 0.8% to 31,443.38 in Mumbai, much-needed support from hopes for a while the NSE Nifty 50 Index pick-up in demand. declined by the same magnitude. But a slew of monumentally bad data Both measures added 0.7% on has highlighted the struggle govern- Wednesday after declining in the ments face is reigniting economies, first two days of the week. with hundreds of millions of people left India’s bond and currency jobless and countless companies going markets were shut yesterday for under or on the brink. a local holiday. Yesterday the Bank of England said Most businesses in India re- it expects Britain’s economic output to main closed after the govern- crash 14% this year, while data showed ment extended its nationwide France’s industrial output collapsed lockdown by two more weeks 16.2% in March on a monthly basis. until May 17 to try to curb the China presented a mixed bag of trade spread of coronavirus. The na- data, with exports showing a surprise tion so far has seen 52,987 cases jump in exports but imports tumbling. with fatalities at 1,785, according While the rise in overseas ship- to data compiled by Johns Hop- ments was welcome, observers said it kins University. was partly boosted by sales of medi- India’s services industries, cal equipment and much worse figures which make up half of the econ- were to be expected over the coming omy, crashed last month, with months. a performance-measuring in- That came a day after payrolls firm dex plunging to the lowest level ADP said the US private sector lost in the world and suggesting the 20.2mn jobs last month alone, sending economy contracted at an annu- shivers through markets, days ahead of al rate of 15% in April, according the release of a key government report to IHS Market. that is forecast to show a historic fall in The government has com- employment. mitted less than 1% of gross do- And the European Commission mestic product to contain the forecast the eurozone economy would People walk past an electronic quotation board displaying share prices of the Tokyo Stock Exchange. The TSE ended 0.3% higher at 19,674.77 points yesterday. economic damage from the pan- shrink 7.7% this year, while India re- demic, prompting economists ported its crucial service sector – which turned red. Hong Kong slipped 0.7% to time in more than two decades. Pompeo hit out at Beijing’s handling of Such moves would endanger a fragile and industrialists to pitch for a makes up more than half of GDP – col- 23,908.63 and Shanghai eased 0.2% to “We remain concerned about the po- the pandemic, accusing it of a cover-up. truce between the two sides that was bigger stimulus package. lapsed in April. 2,871.52, while Mumbai dropped 0.9% tential for the pandemic to have lasting China has hit back, saying the White agreed late last year and which brought “The market is likely to be “Sentiment appears to be shifting and Bangkok shed more than 1%. effects on growth,” Ron Temple of La- House is telling lies for domestic pur- some stability to the global economy choppy as the focus remains on lower as the scope of shutdowns and Sydney eased 0.4% and Seoul was zard Asset Management said. “Coun- poses, and the row has fanned worries after almost two years of tariff bicker- the number of positive cases travel restrictions are giving rise to flat. tries and companies are likely to exit the economic superpowers will renew ing. and also the much-anticipated economic uncertainty, which is gradu- But Tokyo, which was returning the crisis with significantly higher debt, their trade war that hammered global OANDA’s Edward Moya added: government stimulus package, ally retaking hold, even more so ahead after an extended holiday weekend, curtailing their ability to invest and in- markets last year. “Trump expects China to live up to their whose delivery has been delayed,” of what’s bound to be a dreary (US ended 0.3% higher at 19,674.77, while novate.” The Financial Times, citing officials end of the trade deal and that seems to said Gaurang Shah, a strategist at jobs) report on Friday,” said AxiCorp’s there were also gains in Wellington Investors are growing increasingly in Washington, reported that Trump is have no chance of happening because of Geojit Financial Services Ltd in Stephen Innes. and Taiwan as well as Manila despite worried about rising tensions between looking into stepping up sanctions on Covid-19.” Mumbai. “Earnings so far have After losses in Europe as well as the data showing the Philippines economy China and the United States after Don- China with curbs on supply chains and Oil prices sank, extending Wednes- offered no major surprises and, Dow and S&P 500 on Wall Street, Asia shrunk in the first quarter for the first ald Trump and Secretary of State Mike investment flows. day’s losses that ended a five-day rally. with the lockdown extension, the next two quarters are expected to show pain.” Of the 12 Nifty companies that have announced results so far, all except Infosys Ltd and HCL Technologies Ltd have missed ‘Buy when Fed is buying won’t work anymore’ estimates. Yes Bank Ltd rose 7% after the the lender posted a lower-than- Bloomberg the target federal funds interest rate Now, though, investors will increas- if the state re-openings are accompa- payments, let alone dividends. We saw expected quarterly loss. New York by 1 percentage point to zero as well as ingly need proof that these reasons nied by de-risking, de-globalisation, this in October 2008 when the Fed also ICICI Securities Ltd is due to numerous liquidity facilities to support for optimism are bearing fruit. In Wall extended periods of social distancing went to unprecedented levels to sup- announce March-quarter earn- various parts of the financial market. If Street parlance, investors “bought on and a more cautious attitude in gener- port plunging markets. Along with a ings later yesterday. he S&P 500 Index has rallied 28% the Fed, with its nearly unlimited abil- the rumour,” and any setbacks may al. Even with output returning to 90% bailout of the banks via the Troubled Hindustan Unilever Ltd de- from its low this year on March ity to print money, is buying, how could cause them to “sell on the news.” of its previous levels, it’s likely that Asset Relief Programme, or TARP, the clined for a seventh session, its T23, with Wall Street praising the prices ever go down? That notion alone When considering the potential the recession the economy is now in Fed was also trying to support asset longest stretch of losses since Federal Reserve for basically creating was reason enough for investors to buy. magnitude of the economic rebound, would be twice as bad as the one dur- prices at too high a level. As a result, October 2015, as shareholders money to purchase a broad range of Optimism was further fuelled by recall that the deepest post-World War ing the financial crisis, suggesting the the S&P 500 fell 25% over the following including GlaxoSmithKline Plc securities, effectively supporting asset some states starting to lift shelter-in- II recession was the last one, which recent rebound in equities has gone too six months. are selling shares worth about prices. So now, many believe the bear place orders. Georgia and Texas were lasted from 2007 to 2009. At its worst, far. Today, the government will prob- This leaves the hope of a vaccine as $3.3bn, according to terms seen market that saw the S&P 500 plunge among the first to announce plans to real gross domestic product fell 4% ably say that the US unemployment the sole reason to believe that eco- by Bloomberg. 34% over the course of five weeks start- begin opening their economies. About from its peak. Put another way, the rate reached 16% in April, much higher nomic output will soon return to 100% All but one of 19 sector sub- ing in late February is over and that ma- 30 other states will begin easing re- economy held onto 96% of its pre-re- than the peak of 10% in October 2009, of 2019’s level, which is the only way indexes compiled by BSE Ltd fell, jor stock indexes will not revisit their strictions in the days and weeks ahead. cession output. That was still enough according to a Bloomberg survey of current asset valuations make sense. led by a gauge of power compa- recent lows. Don’t count on it. And there is finally some hope in the to push the unemployment up to 10%, economists. But hope is not a strategy. As cities and nies HDFC Bank Ltd contributed The basis for the optimistic outlook battle against the spreading pandemic, cause the S&P 500 to fall as much as And at that level of output, highly states begin to re-open their econo- the most to the Sensex’s decline, is based on three ideas, starting with with Gilead Science Inc.’s remdesivir 56% and spark social unrest. indebted governments and companies mies and hard data becomes available, decreasing 2.3%; Oil & Natural “you can’t go wrong co-investing with drug being found effective in shorten- This time around, a re-opening of will struggle. A 10% decline in revenue the fear of missing out in the stock rally, Gas Corp Ltd had the steepest the Fed.” The central bank on March 22 ing hospital stays for those with the the economy would have to lead to an is enough to blow a big hole in govern- or FOMO , may be replaced by the re- drop, falling 4.5% Future Retail announced what is probably the most coronavirus. The Food and Drug Ad- almost complete rebound in output ment budgets, requiring massive tax alization that a return to a pre-virus Ltd rose 5% as Amazon.com Inc aggressive set of moves in its 106-year ministration approved its use for Cov- for Fed support of asset prices to hold hikes or bailouts. Companies would be world will be much more difficult than was said to weigh a direct invest- history. They included a reduction in id-19 patients on May 1. at current levels. This seems unlikely unable to stay profitable or meet debt imagined. ment in the retailer. Emerging market FX to struggle against mighty US dollar this year

Reuters volatility ahead. Most emerging market currencies have likely make modest gains this year but bring returns of Jahannesburg stabilised after falling to three-year lows at the end of almost 10%, tightening to 16.80 per dollar in 12 months March, one of the worst months on record, with a 3.5% from around 18.50 presently. loss. They are down about 6% as a whole since the start “Investors do sometimes use low-yield emerging Hobbled emerging market currencies will struggle of 2020, according to an MSCI index. market currencies as a defensive strategy, but then over the next three months against the stronger dollar Even though the pandemic has subsided in China for when risk appetite improves, they will likely go for the as tensions between the United States and China over now, a possible resumption of the US-China trade war likes of South Africa where yields are highest in nominal the coronavirus pandemic mount, a Reuters poll of FX will nudge Beijing’s authorities to keep a tight leash on terms and real terms,” said Absa Capital currency strate- strategists showed. its partly managed yuan currency, the poll suggested. gist Mike Keenan in Johannesburg. Just as traders were cosying up to unprecedented After weakening to a one-month low on Wednesday, “Volatility is still high from the peaks of last month. It aggressive policy easing and some investors were a the most actively traded emerging market currency will only subside further if we get a bit more improve- little more ready to enter risky bets in search of higher is forecast at 7.05 per dollar in three months, around ment in the Covid situation and (so long as) any kind yields, US President Donald Trump threatened Beijing where it was on Wednesday, strengthening to 7.01 in six of tensions between the US and China don’t flare up,” with new tariffs. months. Keenan added. That has reminded many of the allure of safe havens The yuan is then forecast to appreciate about 2% to The slower spread of coronavirus in some countries and underpinned the dollar, even following a dizzying 6.95 per dollar by this time next year. had lifted risk sentiment, with New Zealand recording 30% run-up for Wall Street over the past several weeks But Rabobank’s Every, like some other analysts, said no new cases for a second day in a row this week and after an initial fall of more than a third as the virus the investor optimism that has built up in recent weeks Germany, Finland and New York State planning to ease became a full-blown pandemic. seemed premature. “The key thresholds to watch are lockdown restrictions. “This is likely to put a serious dent in the head- 7.15, which was the high seen this year, and then 7.19, Many emerging market central banks like those in scratching, math-defying risk-on rally we have seen for which was the high seen before the ‘Phase 1 trade deal’ South Africa, Brazil and India have also been pumping much of the week,” said Michael Every, global strategist was signed,” he said. out monetary stimulus to shore up liquidity in their at Rabobank in Hong Kong. “Break through the latter and we are in a dark and domestic markets, although nothing close to the size of Indeed, 22 of 56 market strategists and analysts scary tunnel...and we don’t know if the light we see the US Federal Reserve’s interventions and dollar swap polled May 4-6 said currencies from key emerging mar- ahead is a way out or just the reflection of a monster’s lines. kets – most of which export raw materials to China – are eye.” The battered Indian rupee is not expected to Coronavirus infections have either peaked or slowed at risk of modestly weakening in next three months as recoup its recent losses over the coming year but is down in the developed world, but an inflection point has safe havens remain popular. predicted to gain about 2% from 75.88 per dollar it was yet to be reached in many emerging markets – a huge An employee counts 100-yuan notes at a bank in Nantong in China’s eastern Jiangsu Sixteen said they would hover around current levels. trading at on Wednesday. South Africa’s rand, under- area of concern as health facilities aren’t anywhere near province. The yuan is forecast to appreciate about 2% to 6.95 per dollar by this time Many poll respondents said there would be higher FX pinned by higher interest rates but highly volatile, will as prepared or well-funded. next year. Gulf Times Friday, May 8, 2020 5 BUSINESS

KUWAIT KUWAIT OMAN

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

Al-Eid Food Ksc 78.10 0.00 - Oman Packaging 0.30 0.00 - Al-Madar Finance & Invt Co 80.00 0.00 - Qurain Petrochemical Industr 225.00 0.00 184,076 Oman Oil Marketing Company 0.65 0.00 - Gulf Petroleum Investment 15.50 -3.13 3,367,439 Advanced Technology Co 700.00 0.00 - Oman National Engineering An 0.11 0.00 - Mabanee Co Sakc 611.00 1.16 300,127 Ekttitab Holding Co Sak 11.80 0.00 20,001 Oman Investment & Finance 0.08 0.00 94,264 Inovest Co Bsc 54.00 0.00 - Real Estate Trade Centers Co 27.00 3.85 129,399 Oman Intl Marketing 0.52 0.00 - Al-Deera Holding Co 18.10 0.00 - Acico Industries Co Kscc 115.00 0.00 10,000 Oman Flour Mills 0.73 4.60 537,653 Mena Real Estate Co 24.90 -2.35 154,615 Kipco Asset Management Co 70.90 -0.14 4,277 Oman Fisheries Co 0.08 0.00 20,000 Amar Finance & Leasing Co 48.40 0.00 - National Petroleum Services 993.00 0.00 - Oman Europe Foods Industries 1.00 0.00 - United Projects For Aviation 430.00 0.00 - Alimtiaz Investment Group 79.50 0.00 172,151 Oman Education & Training In 0.22 0.00 - National Consumer Holding Co 44.90 0.00 - Ras Al Khaimah White Cement 65.00 0.00 - Oman Chromite 3.64 0.00 - QATAR Amwal International Investme 38.00 0.00 - Kuwait Reinsurance Co Ksc 171.00 0.00 - Oman Chlorine 0.32 0.00 - Equipment Holding Co K.S.C.C 13.50 0.00 - Kuwait & Gulf Link Transport 49.50 0.00 - Oman Ceramic Company 0.42 0.00 - Company Name Lt Price % Chg Volume Arkan Al Kuwait Real Estate 80.00 0.00 - Humansoft Holding Co Ksc 2,735.00 -1.87 208,276 Oman Cement Co 0.23 4.55 30,000 Gfh Financial Group Bsc 46.60 0.00 - Automated Systems Co Kscc 68.40 0.00 - Oman Cables Industry 0.51 0.00 576 Energy House Holding Co Kscp 15.10 0.00 222,000 47.50 0.00 - 0.05 0.00 68,550 Zad Holding Co 14.81 1.09 13,324 Metal & Recycling Co Oman & Emirates Inv(Om)50% Kuwait Co For Process Plant 265.00 1.92 139,256 59.60 0.00 - 0.15 0.00 - Widam Food Co 6.06 1.73 143,359 Gulf Franchising Holding Co Natl Aluminium Products Al Maidan Dental Clinic Co K 1,220.00 0.00 - 44.00 -7.95 16,000 5.00 0.00 - Vodafone Qatar 1.06 0.76 1,867,359 Al-Enma’a Real Estate Co National Real Estate Develop National Shooting Company 10.20 0.99 636,999 630.00 -1.87 166,552 0.09 0.00 - United Development Co 1.26 5.81 14,811,447 National Mobile Telecommuni National Mineral Water Al-Ahleia Insurance Co Sakp 385.00 0.00 - 0.00 0.00 - 0.32 0.00 - Salam International Investme 0.32 -1.86 9,004,131 Sanad Holding Co Kscc National Life & General Insu Wethaq Takaful Insurance Co 19.80 10.00 100 36.00 -10.00 40,994 0.19 0.00 - Qatar & Oman Investment Co 0.60 -0.50 2,197,561 Unicap Investment And Financ National Gas Co Salbookh Trading Co Kscp 28.90 -0.34 92,620 20.90 -4.57 100 0.14 0.00 - Qatar Navigation 5.80 1.75 288,331 Al Salam Group Holding Co National Finance Co Aqar Real Estate Investments 69.00 0.00 - 57.00 0.00 - 0.60 0.00 - Qatar National Cement Co 3.49 1.13 21,718 Al Aman Investment Company National Detergent Co Saog Hayat Communications 49.50 4.21 100 58.60 0.00 - 3.92 0.00 - Qatar National Bank 17.25 0.29 2,268,872 Mashaer Holding Co Ksc National Biscuit Industries Soor Fuel Marketing Co Ksc 101.00 0.00 - 28.00 -3.45 110 0.16 0.00 420,210 Qatar Islamic Insurance Grou 6.16 0.98 2,208 Manazel Holding National Bank Of Oman Saog Tamkeen Holding Co 5.20 0.00 - 35.00 0.00 - 0.08 0.00 - Qatar Industrial Manufactur 2.51 -2.71 5,552 Tijara And Real Estate Inves Muscat Thread Mills Co Alargan International Real 107.00 0.00 - 540.00 -1.64 239,548 0.44 0.00 - Qatar International Islamic 8.02 0.65 725,753 Jazeera Airways Co Ksc Muscat Insurance Co Saog Burgan Co For Well Drilling 75.90 0.00 - 93.40 0.43 610,000 0.20 0.00 - Qatari Investors Group 1.56 -2.50 430,610 Commercial Real Estate Co Muscat Gases Company Saog Kuwait Resorts Co Kscc 44.70 -4.89 337 69.40 0.00 - 0.05 -3.92 471,325 Qatar Islamic Bank 15.05 0.94 418,847 National International Co Muscat Finance Oula Fuel Marketing Co 100.10 0.00 - 15.90 -0.63 303,749 0.11 0.00 - Qatar Gas Transport(Nakilat) 2.64 1.46 6,906,028 Taameer Real Estate Invest C Muscat City Desalination Co Palms Agro Production Co 56.60 0.00 - 37.90 0.00 - 0.18 0.00 - Qatar General Insurance & Re 2.09 -0.10 6,000 Gulf Cement Co Majan Glass Company Mubarrad Holding Co Ksc 55.00 0.00 19,451 380.00 0.00 2,900 0.16 0.00 - Qatar German Co For Medical 1.21 -9.96 9,612,448 Heavy Engineering And Ship B Majan College Shuaiba Industrial Co 140.00 0.00 - 65.90 -0.15 449,499 0.09 0.00 175,000 Qatar Fuel Qsc 15.95 -0.06 718,996 National Real Estate Co Hsbc Bank Oman Aan Digital Services Co 11.20 -3.45 5,431,302 16.50 0.00 1,530 1.25 0.00 - Qatar First Bank 1.02 -1.93 1,624,997 Al Safat Energy Holding Comp Hotels Management Co Interna First Takaful Insurance Co 43.50 0.00 - 655.00 0.00 - 0.12 0.00 - Qatar Electricity & Water Co 14.86 -0.27 1,013,569 Kuwait National Cinema Co Gulf Stone Kuwaiti Syrian Holding Co 29.00 0.00 200 13.00 4.00 717,336 0.31 0.00 - Qatar Exchange Index Etf 8.71 0.00 - Danah Alsafat Foodstuff Co Gulf Mushroom Company National Cleaning Company 55.00 -4.18 83,500 375.00 0.00 - 0.05 0.00 - Qatar Cinema & Film Distrib 2.54 0.00 - Independent Petroleum Group Gulf Investments Services United Real Estate Company 52.50 0.00 - 74.00 -1.33 186,138 0.11 0.00 - Al Rayan Qatar Etf 2.05 0.34 50,360 Kuwait Real Estate Co Ksc Gulf Invest. Serv. Pref-Shar Agility 653.00 -0.61 1,200,830 365.00 -1.62 84,882 0.11 0.00 - Qatar Insurance Co 1.97 -0.25 3,730,765 Salhia Real Estate Co Ksc Gulf International Chemicals Kuwait & Middle East Fin Inv 89.20 0.00 - 478.00 -0.21 1,761,279 3.88 0.00 - Qatar Aluminum Manufacturing 0.73 0.83 46,286,375 Gulf Cable & Electrical Ind Gulf Hotels (Oman) Co Ltd Fujairah Cement Industries 43.40 0.00 - 583.00 -0.68 4,877,385 0.06 -9.84 7,000 Ooredoo Qpsc 6.10 0.81 999,066 Kuwait Finance House Global Fin Investment Livestock Transport & Tradng 195.00 1.04 100 53.80 -0.37 30,000 0.06 0.00 - National Leasing 0.72 0.00 3,660,459 Gulf North Africa Holding Co Galfar Engineering&Contract International Resorts Co 0.00 0.00 - 72.00 0.00 - 0.39 0.00 - Mazaya Qatar Real Estate Dev 0.69 -0.15 12,706,897 Hilal Cement Co Galfar Engineering -Prefer National Industries Grp Hold 174.00 -1.69 2,783,953 110.00 4.76 15,546 0.18 0.00 - Mesaieed Petrochemical Holdi 1.92 2.07 8,274,346 Osoul Investment Kscc Financial Services Co. Warba Insurance Co 96.00 9.71 31,150 628.00 -0.32 3,508 0.08 0.00 - Al Meera Consumer Goods Co 17.11 0.71 114,061 Gulf Insurance Group Ksc Financial Corp/The First Dubai Real Estate Deve 35.80 2.58 2 66.70 0.00 - 0.49 0.00 - Medicare Group 6.66 0.89 270,715 Umm Al Qaiwain General Inves Dhofar Tourism Al Arabi Group Holding Co 198.00 0.00 - 42.40 -1.40 611,390 0.18 0.00 - Mannai Corporation Qsc 3.06 -1.89 6,983 Aayan Leasing & Investment Dhofar Poultry Kuwait Hotels Sak 100.00 0.00 - 36.90 0.00 - 0.30 0.00 - Masraf Al Rayan 3.77 -0.03 3,237,400 Alrai Media Group Co Ksc Dhofar Intl Development Mobile Telecommunications Co 516.00 -0.77 2,202,784 96.00 -0.72 55,670 0.15 0.00 - Al Khalij Commercial Bank 1.29 1.09 298,064 National Investments Co Dhofar Insurance Effect Real Estate Co 20.50 0.00 - 185.00 -1.60 36,999 0.18 0.00 - Industries Qatar 7.35 -0.12 1,728,306 Commercial Facilities Co Dhofar Generating Co Saoc Tamdeen Real Estate Co Ksc 315.00 0.00 - 707.00 0.00 - 1.28 0.00 - Islamic Holding Group 1.92 0.47 586,705 Yiaco Medical Co. K.S.C.C Dhofar Fisheries & Food Indu Al Mudon Intl Real Estate Co 15.90 0.00 - 350.00 0.00 - 0.12 0.00 - Investment Holding Group 0.49 -1.60 2,894,428 Dulaqan Real Estate Co Dhofar Cattlefeed Kuwait Cement Co Ksc 172.00 -2.82 456,889 89.00 0.00 - 0.26 0.00 - Gulf Warehousing Company 4.85 3.09 110,587 Real Estate Asset Management Dhofar Beverages Co Sharjah Cement & Indus Devel 42.20 0.00 - 0.03 -6.25 100,000 Gulf International Services 1.47 -1.41 1,227,270 Construction Materials Ind Kuwait Portland Cement Co 740.00 0.41 51,443 0.26 0.00 - Ezdan Holding Group 0.84 -4.66 47,168,111 Computer Stationery Inds Educational Holding Group 290.00 0.00 499 0.32 0.62 415,831 Doha Insurance Co 1.06 -0.09 183,008 Bankmuscat Saog Bahrain Kuwait Insurance 200.00 0.00 - 0.09 1.14 10,000 Doha Bank Qpsc 2.00 0.05 5,006,770 Bank Nizwa Asiya Capital Investments Co 33.00 0.00 - OMAN 0.10 0.00 - Dlala Holding 0.66 0.00 1,209 Bank Dhofar Saog Kuwait Investment Co 102.00 0.00 163,621 0.10 0.00 - Commercial Bank Psqc 3.91 -0.71 2,114,215 Company Name Lt Price % Chg Volume Arabia Falcon Insurance Co Burgan Bank 197.00 -2.96 2,240,129 0.08 0.00 - Barwa Real Estate Co 2.83 0.07 2,341,976 Aloula Co Kuwait Projects Co Holdings 168.00 0.60 2,938 Al-Omaniya Financial Service 0.08 -3.85 48,800 Al Khaleej Takaful Group 1.87 -0.37 895,923 Voltamp Energy Saog 0.16 0.00 - Al Madina For Finance And In 10.80 -2.70 1,730,288 Al-Hassan Engineering Co 0.02 0.00 - Al Ahli Bank 0.62 -0.64 7,630,809 Vision Insurance Saoc 0.09 0.00 - Kuwait Insurance Co 329.00 0.00 - Al-Fajar Al-Alamia Co 0.75 0.00 - United Power/Energy Co- Pref 1.00 0.00 - Al Masaken Intl Real Estate 35.00 0.00 - Al-Anwar Ceramic Tiles Co 0.14 0.00 - United Power Co Saog 1.15 0.00 - Intl Financial Advisors 31.00 0.65 301,200 Al Suwadi Power 0.06 1.69 102,800 United Finance Co 0.07 0.00 - KUWAIT First Investment Co Kscc 24.70 -1.98 871,733 Al Sharqiya Invest Holding 0.07 0.00 - Ubar Hotels & Resorts 0.13 0.00 - Al Mal Investment Company 9.30 -7.00 970,050 Al Maha Petroleum Products M 0.68 0.00 - Takaful Oman 0.12 0.00 - Company Name Lt Price % Chg Volume Bayan Investment Co Kscc 35.00 -9.09 74,713 Al Maha Ceramics Co Saoc 0.19 0.00 - Taageer Finance 0.10 0.00 - Egypt Kuwait Holding Co Sae 480.00 0.00 - Al Madina Takaful Co Saoc 0.07 0.00 - Sultan Center Food Products 52.00 -3.70 79,000 Sweets Of Oman 0.55 0.00 - Coast Investment Development 29.90 0.00 118,603 Al Madina Investment Co 0.02 0.00 - Kuwait Foundry Co Sak 250.00 0.00 - Sohar Power Co 0.05 0.00 - Privatization Holding Compan 42.50 0.00 14,610 Al Kamil Power Co 0.34 0.00 4,290 Kuwait Financial Centre Sak 85.00 -3.41 74,333 Sohar International Bank 0.08 0.00 490 Injazzat Real State Company 66.70 0.00 - Al Jazerah Services -Pfd 0.55 0.00 - Ajial Real Estate Entmt 131.00 -0.76 10,000 Smn Power Holding Saog 0.06 0.00 - Kuwait Cable Vision Sak 14.00 0.00 - Al Jazeera Steel Products Co 0.10 0.00 - Kuwait Finance & Investment 42.50 0.00 - Shell Oman Marketing - Pref 1.05 0.00 - Sanam Real Estate Co Kscc 32.30 0.00 50 Al Jazeera Services 0.16 0.00 - National Industries Co Ksc 170.00 1.19 20,000 Shell Oman Marketing 1.10 0.00 - Ithmaar Holding Bsc 22.30 0.00 - Al Izz Islamic Bank 0.06 0.00 1,000 Kuwait Real Estate Holding C 31.40 0.00 - Sharqiyah Desalination Co Sa 0.20 0.00 - Aviation Lease And Finance C 152.00 -0.65 680,415 Al Buraimi Hotel 0.88 0.00 - Securities House/The 32.80 -2.96 55,000 Sembcorp Salalah Power & Wat 0.13 0.00 4,000 Arzan Financial Group For Fi 30.00 -1.96 825,000 Al Batinah Power 0.06 0.00 100,515 Boubyan Petrochemicals Co 496.00 1.02 40,406 Salalah Port Services 0.60 0.00 - Ajwan Gulf Real Estate Co 11.00 -3.51 908,133 Al Batinah Hotels 1.13 0.00 - Al Ahli Bank Of Kuwait 167.00 0.00 1,668,948 Salalah Mills Co 0.50 0.00 510 Kuwait Business Town Real Es 29.20 0.00 - Al Batinah Dev & Inv 0.07 0.00 - Ahli United Bank (Almutahed) 263.00 -5.05 3,829,895 Salalah Beach Resort Saog 1.38 0.00 - Future Kid Entertainment And 77.20 -4.93 3,011 Al Anwar Holdings Saog 0.07 -1.39 546,048 National Bank Of Kuwait 734.00 -0.81 2,375,592 Sahara Hospitality 3.12 0.00 - Specialities Group Holding C 64.00 2.24 4,851 Al Ahlia Insurance Co Saoc 0.37 0.00 - Commercial Bank Of Kuwait 502.00 0.20 70 Renaissance Services Saog 0.41 -3.33 72,851 Abyaar Real Eastate Developm 5.20 0.00 - Ahli Bank 0.12 0.00 - Kuwait International Bank 173.00 -2.26 6,244,759 Raysut Cement Co 0.36 -1.11 219,860 Dar Al Thuraya Real Estate C 63.80 0.00 - Acwa Power Barka Saog 0.60 0.00 - Gulf Bank 213.00 -1.39 6,879,684 Phoenix Power Co Saoc 0.05 0.00 781,884 Kgl Logistics Company Kscc 28.80 7.87 145,269 Abrasives Manufacturing Co S 0.05 0.00 - Al-Massaleh Real Estate Co 33.40 0.00 - Packaging Co Ltd 2.21 0.00 - Combined Group Contracting 212.00 1.44 1,170,175 A’saffa Foods Saog 0.60 0.00 - Al Arabiya Real Estate Co 24.00 0.00 50,000 Ooredoo 0.41 0.00 2,496 Jiyad Holding Co Ksc 30.90 -4.92 7,120 0Man Oil Marketing Co-Pref 0.25 0.00 - Kuwait Remal Real Estate Co 15.70 -4.85 1,500 Ominvest 0.32 0.63 579,027 Warba Capital Holding Co 54.90 0.00 - #N/A Invalid Security 0.00 0.00 - Alkout Industrial Projects C 808.00 0.00 - Oman United Insurance Co 0.32 1.28 50,000 Gulf Investment House Ksc 49.30 0.00 3,155 #N/A Invalid Security 0.00 0.00 - Oman Telecommunications Co 0.63 0.00 122,500 A’ayan Real Estate Co Sak 60.00 0.00 - Boubyan Bank K.S.C 485.00 -0.21 218,335 Oman Refreshment Co 1.00 0.00 - Investors Holding Group Co.K 12.60 -5.97 12,539,228 Ahli United Bank B.S.C 178.00 -5.32 52,616,377 Oman Qatar Insurance Co 0.09 0.00 - Al-Mazaya Holding Co 51.50 1.18 1 Osos Holding Group Co 109.00 -0.91 19,059 LATEST MARKET CLOSING FIGURES

Hong Kong Exchange CEO Li to Singapore oil trader step down as headwinds mount involved in ‘dishonest’ deals: HSBC Bloomberg benchmark index. HKEX shares Hong Kong dropped as much as 4%, and were down 3.3% at HK$245 as of 2:30pm Bloomberg not under statutory restructuring or in- in Hong Kong. Singapore solvency protection. ong Kong Exchanges & The bourse yesterday report- The Singapore-based company is Clearing Ltd chief execu- ed a 13% drop in net income to operational and is working with other Htive officer Charles Li said HK$2.26bn, missing an estimate of SBC Holdings Plc alleged Sin- creditor banks to negotiate a consensual he’s stepping down after 10 years, HK$2.77bn. gapore oil trader ZenRock Com- restructuring, a person said on Wednes- adding his departure to the rising Still, core revenue rose 19% amid Hmodities Trading Pte Ltd was day. challenges for the bourse at a tur- a trading boom and it retained its involved in a series of “highly dishonest HSBC’s allegations come in the wake bulent time for the financial hub. top spot globally for the number of transactions” that included the compa- of some high-profile cases in recent The 59-year-old will continue initial public offerings. ny using the same cargo of oil to obtain years of banks being hit by traders using to lead the exchange until his con- The severe market turmoil drove more than one loan from banks, accord- the same commodities as collateral for tract expires in October next year, its investments into the red, after a ing to court documents seen by Bloomb- several loans. or leave earlier if a replacement is $882mn gain a year earlier. erg. In one of the industry’s most notable found, according to a filing. But trading is already cooling. Europe’s biggest lender filed an ap- cases, Standard Chartered Plc and Citi- HKEX chairman Laura Cha And as volatility fades, there plication to Singapore’s High Court on group Inc in 2014 lost millions after a praised his leadership and thanked could be a “sharp reduction” in May 4 to put ZenRock under so-called Chinese metals trader pledged the same him “for giving us as much time as revenue and earnings for the ex- judicial management, a form of debt re- stockpile three times. possible to ensure a smooth transi- change, Goldman Sachs Group Inc structuring in which a third party runs HSBC and other banks are stepping tion.” said in a report last month. the company. up efforts to avoid further losses related Li doubled revenue since tak- Declining volatility and reduced The bank said it has lost confidence in to commodities trading after the down- ing over, earning the moniker “Mr income from investments will be the management of the company and its fall of Hin Leong Trading (Pte) Ltd, the China” for tying the bourse closer “double headwinds for revenue” ability to pay its debts to the bank, which storied Singapore oil trader that owes 23 to the mainland. this year, the US bank said. amount to almost $49mn, according to banks almost $4bn. Still, a failed bid to takeover the China’s increasingly asser- the documents. HSBC has the most exposure to Hin London Stock Exchange last year tive stance toward Hong Kong HSBC said it cannot discuss matters Leong as part of its $2bn oil-trading loan stands as a misstep. is raising doubts about the ex- under legal proceedings. portfolio. The Asian exchange now faces change’s push to expand its land- Nobody from Singapore-based Zen- ZenRock was established in 2014 in mounting headwinds with political mark Stock Connect programme, Rock responded to multiple attempts to Singapore by a group of veteran oil trad- unrest and a deep economic slump which allows trading of stocks seek comment via calls and messages. ers including Xie Chun and Tony Lin. in its home city. between the city and Shanghai HSBC said it has reason to believe that Xie used to work for Unipec, the trad- A push by China to build up its and Shenzhen. ZenRock provided false and/or fraudu- ing arm of Chinese state-owned oil titan own exchanges is a challenge to Li said in February that one lent transaction documents in its loan Sinopec, and Lin was previously at Vitol Hong Kong’s role as the main fi- needs to “be realistic” on expect- applications to the bank. SA, the world’s biggest independent oil nancing hub for Chinese compa- ing progress on big market initia- It also said it believes the trader may trader. nies. tives due to virus outbreak. have wrongfully diverted payment of The company traded more than 15mn “He has done very well in build- Li: To lead the Hong Kong Exchanges & Clearing until the contract expires in One sticking point is whether funds that should have been paid di- tonnes of oil and petroleum products ing our foundation,” said Chris- October next year. to include in the Stock Connect rectly to the lender “and/or dissipated last year, according to its website. topher Cheung, a lawmaker for shares like Alibaba Group Holding these funds beyond the reach of the Its business spans from trading to the financial services sector. “His A former banker, Li has champi- ing the exchange with bourses in Ltd, which are dual listed and al- bank.” risk management and market research, leaving will certainly bring a shock oned several key market reforms as Shanghai and Shenzhen, allowing lowing weighted voting rights. HSBC said it understands that the and has offices in Singapore, Shanghai, to HKEX in this turbulent time, well as pursued acquisitions. stock trading with the mainland, The programme delivered company’s total debt to institutional Zhoushan and Geneva. with unfinished tasks to lure US- Before falling short in his at- a programme that now contributes record revenue for the exchange of lenders stands at about $165mn, accord- The firm posted revenue of $6.15bn in listed Chinese stocks to come back tempt to buy the LSE in 2019, he about 10% of its revenue. HK$404mn, up 74% from a year ing to the documents. 2018, compared with $1.24bn in 2016, to Hong Kong, and the challenge engineered a deal for the UK capi- The shares have returned 8% earlier as both northbound and In response to market speculation according to its latest annual financial from Macau to develop a financial tal’s metal exchange in 2012. a year since he took over, almost southbound trading jumped to all- over its financial status, ZenRock re- statement on Singapore’s accounting centre.” He was instrumental in link- double the return on the city’s time highs. leased a statement last month saying it’s regulator website. Gulf Times 6 Friday, May 8, 2020 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 24,059.01 +394.37 Apple Inc 303.90 1.09 3,148,110 S&P 500 Index 2,897.47 +49.05 American Express Co 87.09 3.68 371,159 Nasdaq Composite Index 8,992.94 +138.55 Boeing Co/The 129.98 6.66 2,239,349 S&P/Tsx Composite Index 14,943.98 +113.24 Caterpillar Inc 109.33 1.54 161,187 Mexico Bolsa Index 36,699.85 -286.35 Cisco Systems Inc 41.62 1.14 1,243,412 Brazil Bovespa Stock Idx 79,730.20 +666.47 Chevron Corp 93.68 4.03 603,412 Ftse 100 Index 5,935.98 +82.22 Walt Disney Co/The 104.23 3.32 934,891 Cac 40 Index 4,501.44 +68.06 Dow Inc 33.56 5.01 359,958 Dax Index 10,759.27 +153.07 Goldman Sachs Group Inc 182.52 3.17 254,988 Ibex 35 Tr 6,730.90 +59.20 Home Depot Inc 230.36 2.88 212,773 Nikkei 225 19,674.77 +55.42 Intl Business Machines Corp 122.86 -0.25 276,906 Japan Topix 1,426.73 -4.53 Intel Corp 59.70 0.88 1,442,692 Hang Seng Index 23,980.63 -156.85 Johnson & Johnson 148.53 0.30 422,258 All Ordinaries Indx 5,449.87 -14.94 Jpmorgan Chase & Co 92.38 2.34 749,114 Nzx All Index 1,759.12 +12.68 Coca-Cola Co/The 45.05 0.66 951,406 Bse Sensex 30 Index 31,443.38 -242.37 Mcdonald’s Corp 180.94 2.24 208,542 Nse S&P Cnx Nifty Index 9,199.05 -71.85 3M Co 146.89 0.47 226,713 Straits Times Index 2,591.60 +19.24 Merck & Co. Inc. 76.80 -0.41 765,135 Karachi All Share Index 23,650.99 -292.73 Microsoft Corp 183.79 0.68 3,308,980 Jakarta Composite Index 4,608.79 -21.34 Nike Inc -Cl B 89.54 1.24 355,565 Pfizer Inc 37.47 -2.70 2,182,340 Procter & Gamble Co/The 113.51 0.36 532,310 Travelers Cos Inc/The 97.30 4.30 89,138 TOKYO Unitedhealth Group Inc 288.66 -0.04 156,195 United Technologies Corp 0.00 0.00 - Company Name Lt Price % Chg Volume Visa Inc-Class A Shares 184.15 3.00 816,029 Nidec Corp 6,062.00 0.08 2,381,300 Verizon Communications Inc 55.81 0.31 978,794 Isuzu Motors Ltd 779.10 -1.99 3,627,400 Walgreens Boots Alliance Inc 41.44 0.58 609,329 Unicharm Corp 3,966.00 0.08 1,244,000 Walmart Inc 123.89 0.47 343,402 Nomura Holdings Inc 428.40 -2.72 14,656,800 Exxon Mobil Corp 44.92 2.11 1,338,374 Daiichi Sankyo Co Ltd 7,614.00 3.21 1,527,100 Subaru Corp 2,036.00 -1.40 3,085,100 Sumitomo Realty & Developmen 2,749.00 -1.47 1,209,300 FTSE 100 Ntt Docomo Inc 3,075.00 -3.00 6,096,200 Sumitomo Metal Mining Co Ltd 2,579.50 -1.32 1,251,500 Company Name Lt Price % Chg Volume Orix Corp 1,200.00 -3.96 10,544,300 Asahi Group Holdings Ltd 3,649.00 1.59 1,876,100 Anglo American Plc 1,467.00 7.02 4,959,819 Keyence Corp 39,830.00 2.92 847,900 Associated British Foods Plc 1,766.00 4.13 1,712,688 Mizuho Financial Group Inc 119.80 -1.16 105,079,400 Admiral Group Plc 2,415.00 -3.71 721,719 Sumitomo Mitsui Trust Holdin 2,991.50 -1.79 1,237,500 Ashtead Group Plc 2,216.00 2.59 1,492,684 Japan Tobacco Inc 1,959.00 -1.11 7,529,600 Antofagasta Plc 805.80 1.38 1,244,049 Sumitomo Electric Industries 1,030.50 -3.24 3,334,800 Auto Trader Group Plc 479.80 3.25 2,606,864 Daiwa Securities Group Inc 423.30 -1.44 8,181,000 Aviva Plc 247.30 3.39 12,676,360 Softbank Group Corp 4,495.00 -2.45 15,944,000 Astrazeneca Plc 8,559.00 -3.07 2,639,735 Panasonic Corp 781.00 -1.14 7,724,100 Bae Systems Plc 512.20 4.42 6,648,027 Fujitsu Ltd 10,410.00 -0.05 886,000 Barclays Plc 105.42 4.52 49,648,611 Central Japan Railway Co 16,125.00 -3.09 557,800 British American Tobacco Plc 2,977.00 0.20 2,888,280 Nitori Holdings Co Ltd 16,735.00 1.79 345,300 Barratt Developments Plc 530.80 2.63 3,663,061 Ajinomoto Co Inc 1,889.00 -0.11 1,379,700 Bhp Group Plc 1,376.60 2.93 5,646,589 Daikin Industries Ltd 13,690.00 1.22 698,500 Berkeley Group Holdings/The 4,268.00 1.67 259,921 Mitsui Fudosan Co Ltd 1,857.00 -3.13 6,077,400 British Land Co Plc 389.00 3.46 5,076,220 Ono Pharmaceutical Co Ltd 2,574.00 0.08 1,287,100 Bunzl Plc 1,730.50 -0.66 627,583 Toray Industries Inc 470.60 -0.72 7,626,800 Bp Plc 315.90 0.70 44,012,062 Bridgestone Corp 3,228.00 -1.13 2,535,600 Burberry Group Plc 1,385.00 3.75 969,243 Sony Corp 6,792.00 -0.21 4,745,200 Bt Group Plc 104.95 -8.14 98,845,768 Astellas Pharma Inc 1,813.50 1.71 6,448,600 Coca-Cola Hbc Ag-Di 1,896.50 -1.63 982,149 Hoya Corp 9,739.00 0.81 1,144,700 Carnival Plc 937.00 3.10 1,870,116 Nippon Steel Corp 837.40 -2.79 5,019,500 Centrica Plc 39.91 1.94 36,045,610 Suzuki Motor Corp 3,171.00 -3.09 2,266,700 Compass Group Plc 1,287.00 -1.30 3,325,662 Nippon Telegraph & Telephone 2,406.00 -1.19 7,336,300 Croda International Plc 4,966.00 1.51 416,482 Jxtg Holdings Inc 374.50 -2.04 17,890,000 Crh Plc 2,366.00 2.74 886,149 Murata Manufacturing Co Ltd 5,999.00 1.73 3,098,000 Dcc Plc 5,828.00 2.97 102,506 The bull statue outside the Frankfurt Stock Exchange. The DAX 30 ended 1.4% higher at 10,759.27 points yesterday. Kansai Electric Power Co Inc 1,029.00 -3.79 3,342,100 Diageo Plc 2,778.00 0.51 2,555,693 Denso Corp 3,555.00 -0.36 2,699,000 Direct Line Insurance Group 280.60 -1.20 5,337,177 Sompo Holdings Inc 3,179.00 -5.05 1,647,000 Evraz Plc 270.00 4.90 2,460,566 Daiwa House Industry Co Ltd 2,650.50 -0.54 1,609,200 Experian Plc 2,601.00 5.30 2,023,720 Dai-Ichi Life Holdings Inc 1,279.00 -3.29 5,304,400 Easyjet Plc 531.40 2.35 3,626,599 Mazda Motor Corp 550.00 -4.35 6,087,600 Ferguson Plc 5,700.00 3.94 386,479 Komatsu Ltd 1,977.00 0.15 4,602,200 Fresnillo Plc 681.00 1.10 1,395,781 West Japan Railway Co 5,927.00 -4.71 1,528,600 Stock markets rise on Glencore Plc 148.18 2.29 29,865,406 Kao Corp 8,321.00 1.09 3,171,200 Glaxosmithkline Plc 1,674.60 -1.32 9,075,278 Mitsui & Co Ltd 1,501.00 1.08 8,985,700 Gvc Holdings Plc 792.80 5.82 2,948,236 Daito Trust Construct Co Ltd 10,110.00 0.25 391,200 Hikma Pharmaceuticals Plc 2,473.00 -0.68 689,716 Otsuka Holdings Co Ltd 4,154.00 0.36 842,800 Hargreaves Lansdown Plc 1,505.00 5.58 836,134 Oriental Land Co Ltd 13,260.00 -2.68 1,683,500 Halma Plc 2,233.00 2.62 1,033,155 Sekisui House Ltd 1,808.00 -0.17 2,653,300 Hsbc Holdings Plc 412.70 2.67 28,943,172 easing lockdowns Secom Co Ltd 9,001.00 0.68 466,200 Hiscox Ltd 801.20 5.59 2,676,852 Tokio Marine Holdings Inc 4,494.00 -5.23 4,571,200 Intl Consolidated Airline-Di 190.45 -3.15 26,703,584 Aeon Co Ltd 2,118.50 0.19 2,222,800 Intercontinental Hotels Grou 3,594.00 4.72 998,094 Asahi Kasei Corp 727.20 -1.33 4,969,100 3I Group Plc 765.00 1.35 2,325,240 Kirin Holdings Co Ltd 2,017.00 -0.42 2,466,100 Imperial Brands Plc 1,627.00 0.46 1,699,198 Marubeni Corp 465.70 -7.73 25,442,900 Informa Plc 454.30 5.38 5,227,141 and China exports Mitsubishi Ufj Financial Gro 411.20 -0.92 56,683,100 Intertek Group Plc 4,722.00 1.44 292,155 Mitsubishi Chemical Holdings 593.70 0.00 6,743,900 Itv Plc 73.32 -1.40 14,940,669 Fanuc Corp 17,280.00 0.70 995,800 Johnson Matthey Plc 1,955.00 3.66 491,788 AFP Asian stock markets closed mixed, Nevertheless, a slew of monumen- Fast Retailing Co Ltd 50,270.00 -0.61 750,500 Kingfisher Plc 156.15 0.77 6,970,845 while oil prices rallied. tally bad data has highlighted the Ms&Ad Insurance Group Holdin 2,938.50 -2.18 2,063,100 London Land Securities Group Plc 643.80 2.19 2,122,674 China’s exports saw a surprise 3.5% struggle governments face in reignit- Kubota Corp 1,296.00 -0.42 2,411,400 Legal & General Group Plc 205.00 1.64 15,849,271 Seven & I Holdings Co Ltd 3,358.00 -2.24 2,482,800 rise in April, official figures showed ing economies, with hundreds of mil- Lloyds Banking Group Plc 31.29 3.70 168,713,114 Inpex Corp 677.00 0.52 10,281,900 tock markets rose yesterday as yesterday. lions of people left jobless and count- London Stock Exchange Group 7,828.00 1.98 480,180 Resona Holdings Inc 317.00 -2.37 11,740,000 investors looked beyond grim “Market participants are hoping to less companies going under or on the Micro Focus International 476.90 2.67 1,922,384 Fujifilm Holdings Corp 5,102.00 0.14 3,629,200 Marks & Spencer Group Plc 95.12 6.78 48,696,585 economic news to focus on eas- see a similar bounce in data for oth- brink of insolvency. Yamato Holdings Co Ltd 1,890.00 0.80 1,551,400 S Mondi Plc 1,361.00 1.95 1,533,419 ing coronavirus lockdown measures, er major economies once lockdown Germany and France reported Chubu Electric Power Co Inc 1,403.00 -2.97 2,878,600 Melrose Industries Plc 96.00 -2.24 17,466,283 with surprisingly strong Chinese ex- measures are eased,” said Fawad Raza- slumps in industrial production and Mitsubishi Estate Co Ltd 1,715.00 -0.32 4,345,300 Wm Morrison Supermarkets 187.10 1.55 9,044,004 port data adding to the positive vibe. qzada at ThinkMarkets. Britain said its total economic output Mitsubishi Heavy Industries 2,630.50 -1.33 1,416,600 National Grid Plc 921.20 -1.90 7,136,286 Sysmex Corp 7,385.00 2.56 673,300 Wall Street was up around 1.5% in He cautioned, however, that the would plummet by 14% this year. Nmc Health Plc 0.00 0.00 - Shiseido Co Ltd 6,405.00 0.23 2,276,600 the late New York morning, a rise com- economic damage from the virus could The UK forecast came a day after the Next Plc 4,882.00 5.15 662,479 Shionogi & Co Ltd 5,827.00 0.97 1,025,600 parable to the advances seen across already be too deep to allow for a quick European Union warned of a 7.7-per- Ocado Group Plc 1,864.00 5.16 2,287,537 Terumo Corp 3,476.00 0.90 2,826,000 #N/A Invalid Security 0.00 0.00 - Europe at the closing bell. rebound. cent eurozone contraction in 2020. Tokyo Gas Co Ltd 2,480.50 1.37 1,656,100 Prudential Plc 1,123.00 2.56 6,391,407 London stocks were also under- But the overall mood was upbeat, In the US meanwhile, new claims Tokyo Electron Ltd 22,360.00 3.16 1,545,300 Persimmon Plc 2,282.00 1.42 1,479,048 pinned by a weaker pound after the particularly in Europe, where several for unemployment benefits filed by US East Japan Railway Co 7,418.00 -3.42 1,555,600 Pearson Plc 449.60 4.17 4,575,583 Itochu Corp 2,058.00 -2.30 5,684,300 Bank of England held rates and kept its countries are beginning to relax con- workers declined slightly last week, Reckitt Benckiser Group Plc 6,648.00 0.94 1,077,442 Ana Holdings Inc 2,117.00 -6.74 5,862,400 stimulus package unchanged, even as finement measures. but were still a staggering 3.2mn. Royal Bank Of Scotland Group 114.10 5.45 25,219,630 Mitsubishi Electric Corp 1,305.00 0.73 6,097,600 it predicted more gloom for the British “Continued optimism about the “Yet markets fail to respond,” said Royal Dutch Shell Plc-A Shs 1,320.60 2.71 6,097,178 Sumitomo Mitsui Financial Gr 2,710.50 -1.00 5,734,900 Royal Dutch Shell Plc-B Shs 1,263.60 2.68 8,624,602 economy. easing of lockdowns has boosted Eu- Joshua Mahony, Senior Market Analyst Relx Plc 1,859.00 3.45 2,775,472 London’s FTSE 100 closed 1.4% up ropean stock markets,” said CMC Mar- at IG. Rio Tinto Plc 3,725.50 3.37 2,509,630 at 5,935.98 points, Frankfurt’s DAX 30 kets analyst David Madden. Instead the “dour data” were “swat- Rightmove Plc 520.80 4.73 3,158,713 SENSEX ended 1.4% higher at 10,759.27 points. “A number of countries have taken ted away” by investors who preferred Rolls-Royce Holdings Plc 287.10 -2.25 15,628,046 Paris’ CAC 40 finished gaining 1.5% steps to reopen sections of their econ- to focus on hope for an economic re- Company Name Lt Price % Chg Volume Rsa Insurance Group Plc 393.60 6.55 6,944,237 at 4,501.44 points, while the EURO omies and there is speculation the UK bound, he said. Rentokil Initial Plc 482.10 0.42 2,832,553 Adani Ports And Special Econ 282.40 4.53 6,505,707 STOXX 50 added 1.3% at 2,880.60 could be loosening restrictions in the The dollar rose against its peers fol- Sainsbury (J) Plc 192.70 1.77 9,616,031 Asian Paints Ltd 1,594.30 -1.02 5,256,263 Schroders Plc 2,791.00 2.95 411,794 points. next few days.” lowing the data. Axis Bank Ltd 397.35 2.19 41,339,427 Sage Group Plc/The 642.00 2.29 2,725,112 Bajaj Finance Ltd 2,060.55 -2.17 7,770,204 Segro Plc 822.40 3.58 3,613,198 Bharti Airtel Ltd 528.05 -3.29 15,532,288 Smurfit Kappa Group Plc 2,514.00 3.12 226,336 Bharti Infratel Ltd 172.80 7.40 18,270,937 HONG KONG HONG KONG Standard Life Aberdeen Plc 219.50 3.49 8,270,344 Bajaj Auto Ltd 2,406.55 -2.64 422,146 Ds Smith Plc 313.00 0.87 4,567,733 Bajaj Finserv Ltd 4,673.40 -0.42 645,431 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Smiths Group Plc 1,250.00 4.38 711,686 Bharat Petroleum Corp Ltd 329.55 -4.14 8,550,734 Scottish Mortgage Inv Tr Plc 683.50 1.33 4,395,682 55.95 -1.32 5,691,677 Cipla Ltd 589.55 -0.37 4,620,871 Ck Hutchison Holdings Ltd Hong Kong & China Gas 13.72 -0.72 8,715,144 Smith & Nephew Plc 1,657.50 2.22 2,138,658 16.12 0.88 4,446,361 Coal India Ltd 130.80 -2.21 10,860,354 Hang Lung Properties Ltd Bank Of Communications Co-H 4.78 -1.04 29,794,974 Spirax-Sarco Engineering Plc 9,370.00 3.06 174,131 45.30 -2.05 2,488,608 Dr. Reddy’s Laboratories 3,837.65 -0.39 916,303 Ck Infrastructure Holdings L China Petroleum & Chemical-H 3.68 0.00 68,609,349 Sse Plc 1,235.50 0.61 2,516,975 64.75 -1.15 4,074,343 Eicher Motors Ltd 14,010.50 1.09 127,050 Hengan Intl Group Co Ltd Hong Kong Exchanges & Clear 246.40 -2.76 9,624,132 Standard Chartered Plc 413.40 5.00 4,803,839 13.40 -0.74 11,974,478 Gail India Ltd 91.50 -3.38 13,264,771 China Shenhua Energy Co-H Bank Of China Ltd-H 2.89 0.00 144,973,683 St James’s Place Plc 849.20 1.72 1,683,269 15.50 2.11 25,006,775 Grasim Industries Ltd 485.20 0.58 1,737,010 Cspc Pharmaceutical Group Lt Hsbc Holdings Plc 38.85 -0.38 23,315,862 Severn Trent Plc 2,417.00 -0.08 515,200 134.00 -0.22 1,329,508 Hcl Technologies Ltd 511.75 -1.42 19,998,942 Hang Seng Bank Ltd Power Assets Holdings Ltd 50.10 -1.76 5,615,181 Tesco Plc 237.30 1.19 18,700,398 30.60 -1.13 10,528,093 Housing Development Finance 1,703.90 -1.63 3,349,484 China Resources Land Ltd Mtr Corp 42.85 -0.35 1,988,742 Tui Ag-Di 265.00 -10.50 7,135,787 48.15 -0.82 8,605,562 Hdfc Bank Limited 925.00 -2.26 10,916,003 Ck Asset Holdings Ltd China Overseas Land & Invest 25.65 -2.66 23,151,121 Taylor Wimpey Plc 151.90 1.50 11,874,074 11.80 -0.34 38,005,840 Hero Motocorp Ltd 2,000.30 -1.31 1,112,940 Sino Biopharmaceutical Tencent Holdings Ltd 407.20 -0.68 12,298,259 Unilever Plc 4,083.00 1.62 2,812,514 30.25 -0.66 3,696,458 Hindalco Industries Ltd 117.65 -0.80 16,733,347 Henderson Land Development China Unicom Hong Kong Ltd 4.89 -1.41 29,449,242 United Utilities Group Plc 899.60 0.02 1,664,190 69.20 -0.07 20,381,039 Hindustan Petroleum Corp 200.90 -0.79 7,455,909 Aia Group Ltd Link Reit 68.40 -0.51 3,300,518 Vodafone Group Plc 112.92 0.30 43,878,193 5.07 -0.39 131,824,944 Hindustan Unilever Ltd 1,992.05 -0.90 185,670,048 Ind & Comm Bk Of China-H Sino Land Co 10.70 -1.29 4,489,576 John Wood Group Plc 180.15 5.75 3,597,141 5.52 -0.90 6,971,694 Icici Bank Ltd 336.75 -1.36 27,657,193 Want Want China Holdings Ltd China Resources Power Holdin 8.97 -0.55 3,394,826 Wpp Plc 605.00 2.65 3,526,700 102.50 -1.54 4,418,850 Indiabulls Housing Finance L 125.20 1.34 17,037,471 Sun Hung Kai Properties Petrochina Co Ltd-H 2.66 -1.12 76,502,763 Whitbread Plc 2,858.00 2.33 584,296 9.04 -0.22 10,428,827 Indusind Bank Ltd 454.35 6.78 26,784,727 New World Development Cnooc Ltd 8.57 -0.58 59,694,775 - 12.62 0.32 42,781,140 Infosys Ltd 664.95 -0.14 4,779,550 Geely Automobile Holdings Lt China Construction Bank-H 6.08 -0.82 255,896,471 48.65 -2.11 2,165,708 Indian Oil Corp Ltd 75.75 -1.05 13,425,918 Swire Pacific Ltd - Cl A China Mobile Ltd 59.10 -1.01 20,787,117 30.70 -1.92 13,621,827 Itc Ltd 161.00 -1.77 24,249,898 Sands China Ltd 33.00 0.92 6,005,738 TOKYO Jsw Steel Ltd 172.20 3.86 11,944,061 Wharf Real Estate Investment 79.95 -1.78 3,434,548 Kotak Mahindra Bank Ltd 1,199.80 -3.70 6,843,277 Clp Holdings Ltd 9.79 0.41 18,109,560 Company Name Lt Price % Chg Volume Larsen & Toubro Ltd 822.85 -1.73 3,529,156 Country Garden Holdings Co 12,971,502 Aac Technologies Holdings In 37.55 -1.05 7,576,174 GCC INDICES Japan Airlines Co Ltd 1,747.50 -6.92 7,915,500 Mahindra & Mahindra Ltd 400.65 3.49 1,530,824 Shenzhou International Group 91.40 0.16 2,106,216 Recruit Holdings Co Ltd 3,041.00 -1.04 4,439,700 Maruti Suzuki India Ltd 4,749.30 -1.94 Indices Lt Price Change 8,449,705 Ping An Insurance Group Co-H 79.10 0.25 25,717,181 Softbank Corp 1,454.50 0.90 6,032,000 Ntpc Ltd 90.45 -4.49 20,806,305 China Mengniu Dairy Co 27.50 -1.96 8,010,078 Kyocera Corp 5,630.00 0.90 1,240,600 Oil & Natural Gas Corp Ltd 75.60 -4.61 Doha Securities Market 8,799.30 +40.40 4,815,768 Sunny Optical Tech 113.00 -0.18 6,626,575 Nissan Motor Co Ltd 333.60 -4.22 21,936,600 Power Grid Corp Of India Ltd 161.75 -2.21 22,871,529 Boc Hong Kong Holdings Ltd 23.95 -0.42 5,449,576 T&D Holdings Inc 864.00 -2.92 3,561,900 Reliance Industries Ltd 1,506.95 3.16 Kuwait Stocks Exchange 4,137.93 -23.61 42,944,139 China Life Insurance Co-H 15.58 -0.38 34,981,725 Toyota Motor Corp 6,414.00 -1.23 5,930,700 State Bank Of India 170.75 -0.20 11,216,370 Citic Ltd 7.62 -1.42 12,304,418 Kddi Corp 3,066.00 -0.68 5,834,000 Sun Pharmaceutical Indus 452.20 -0.48 Oman Stock Market 3,483.98 +10.83 8,958,411 Galaxy Entertainment Group L 51.10 -0.10 9,125,410 Nitto Denko Corp 5,350.00 1.52 908,300 Tata Steel Ltd 275.85 -0.68 3,166,784 Wh Group Ltd 7.16 -1.24 44,029,223 Hitachi Ltd 3,078.00 -1.94 2,846,600 Tata Consultancy Svcs Ltd 1,891.65 -0.63 6,799,899 Takeda Pharmaceutical Co Ltd 3,698.00 -3.27 7,897,000 Tech Mahindra Ltd 516.35 1.87 4,744,736 Jfe Holdings Inc 658.00 -4.78 4,900,000 Titan Co Ltd 849.10 -3.12 31,160,671 Sumitomo Corp 1,193.50 -0.17 4,090,100 Tata Motors Ltd 82.50 -0.84 4,316,135 Canon Inc 2,151.50 -2.95 5,175,700 Upl Ltd 368.40 -2.80 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The 473,677 Eisai Co Ltd 7,412.00 3.32 883,100 Ultratech Cement Ltd 3,252.85 -2.15 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Nintendo Co Ltd 46,100.00 3.25 1,507,900 Vedanta Ltd 78.55 -1.13 15,605,038 as an offer or solicitation for a purchase or sale of any of the financial instruments mentioned.Gulf Times and Doha Bank Shin-Etsu Chemical Co Ltd 11,950.00 3.82 1,328,500 Wipro Ltd 184.10 -1.58 5,701,094 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Mitsubishi Corp 2,228.50 -0.11 4,431,000 Yes Bank Ltd 28.10 6.84 99,686,585 this data.” Smc Corp 49,560.00 0.18 277,800 Zee Entertainment Enterprise 147.35 -3.47 8,145,342 Gulf Times Friday, May 8, 2020 7 BUSINESS

Alphabet-AT&T pact will fly Norway cuts rates to zero Internet balloons in to cushion its economy disaster areas Bloomberg San Francisco Norges Bank cuts to record low, further cut unlikely; worst economic outlook since World Google’s stratospheric balloons will soon War Two; third rate cut in less cover more countries thanks to a pact than two months; expects rates with AT&T Inc. The telecom company has to stay at zero for several years; announced a plan with Loon, a division crown currency reverses course, of Google parent Alphabet Inc, to provide strengthens vs euro cellular coverage during emergencies. Loon has tested this a few times, sending Reuters its helium-filled balloons over areas hit by Oslo hurricanes. The tennis court-sized contraptions carry equipment that can provide internet orway’s central bank cut its coverage in a 50-mile-wide range, but the key interest rate to zero, a technology needs a network partner on Nrecord low, from 0.25% yes- land. This requires months of technical terday in a surprise move aimed at integration and government approvals. protecting an economy reeling from The AT&T collaboration helps with this the coronavirus crisis. by plugging Loon into more than 200 of Norges Bank said the Nordic the carrier’s roaming partners across the country’s mainland economy, which globe. excludes oil and gas output, is now “While coordination with a local operator expected to contract by 5.2% this will be crucial, Loon’s ability to leverage the year, down from a March forecast of AT&T network vastly expands the number of 0.4% growth. operators around the world that Loon can “We expect activity in the Nor- work with,” Alastair Westgarth, Loon’s chief wegian economy to decline by executive officer, wrote in a blog post. around 5% in 2020, a decline of a The companies said no money is changing magnitude that we have not seen hands, but the partnership sets up Loon since World War Two,” Governor for future deals. Originally conceived as an Oeystein Olsen said after the central alternative global communication network, bank’s third rate cut in less than two Loon has scaled back its ambition and months. turned more to industry partners. Mobile Norges Bank, which most econo- carriers were initially reticent to work with mists polled by Reuters had predict- The Norges Bank, Norway’s central bank, in Oslo. Norges Bank said the Nordic country’s mainland economy, which excludes oil and gas output, is now the early Google project, but some have ed would keep rates on hold, has rap- expected to contract by 5.2% this year, down from a March forecast of 0.4% growth. partnered with the Alphabet unit in recent idly cut the cost of borrowing from years. 1.5% and forecasts it is likely to stay their Norwegian mortgage rates after though steps are now being taken to although it has not completely ruled had “a reputation for doing exactly So far, Loon’s commercial service has been at zero until the end of 2023. the Norges Bank move and Danske gradually re-open. this out. what it says” it now expected rates limited. In March, Loon gained approval The central bank, which said it Bank reduced its cost of borrowing However, April unemployment “The way we see things going for- to “remain rooted at zero”. Although to start a 4G service with Telkom Kenya. now expects growth of 3.0% in 2021 by up to 0.4 percentage point. rose to more than 15%, its highest- ward, we don’t foresee any further the Norwegian crown initially fell Loon says it has trials with Vodafone in compared with an earlier forecast “Activity in the economy is ex- ever level as firms laid off staff, data rate cuts. to 11.16 against the euro from 11.07 New Zealand, Telstra Corp. in Australia, of 1.3%, also said it will continue its pected to pick up as containment from Norway’s Labour and Welfare But then we add that... just before the 0800 GMT rate an- and Telefonica in Peru and Brazil. Recent recently introduced programme of measures are eased. Agency (NAV) show. the committee is especially fo- nouncement, it was trading at 11.03 approvals mean that Loon’s balloons have extraordinary liquidity lending to But it will likely take time for Before March, Norway’s key policy cused on having well-functioning by 1200 GMT as the perceived risk of air space rights in more than 50 countries, banks until the end of August. output and employment to return rate had never been lower than 0.5%, financial, including money, markets. negative rates receded. according to Westgarth. The Norwegian government has to the levels prevailing before the the level which it stood at from 2016 So nothing is dismissed,” Olsen When the crown fell to a record Loon is one of a few Alphabet “moonshots,” also offered business loans, tax- de pandemic,” Olsen told a news con- to 2018. said. low 13.17 against the euro in March, such as drone service Wing, that remain ferments and spending worth 360bn ference. Norges Bank is unlikely to join Capital Economics, one of two Norges Bank said it could intervene intact but have not yet shown a viable crowns ($35bn) to keep the economy Norway invoked emergency pow- Denmark, Switzerland or the Eu- brokerages surveyed by Reuters that in the market, and revealed yesterday business model. These “Other Bets” lost $1.1 going. ers to restrict travel and shut many ropean Central Bank in moving its had expected a rate cut, said in a note it had made extraordinary transac- billion in the first quarter. Several banks said they would cut public and private institutions, al- policy rate into negative territory, to clients that given Norges Bank tions worth 3.5bn crowns ($342mn).

CORPORATE RESULTS Equinor suspends 2020 output guidance amid global oil cutbacks

of $67mn a year earlier, its filing document ranging rescue package announced by the showed. German government in March to help businesses PayPal Holdings weather the economic storm caused by the virus. The rescue plan worth almost €1.1 tn included Wall Street analysts looked past a surprisingly €100bn in support for KfW. shaky first quarter for payment processors Puma’s historic hometown rival Adidas PayPal Holdings Inc and Square Inc hoping that received an emergency loan of €2.4bn from the shift towards more online buying will see KfW in April. their businesses surge this year. Like many clothing firms, Puma has been dealt Square reported a surprise loss in the first a huge blow by restrictions imposed to slow the quarter on Wednesday, as the coronavirus spread of the virus. outbreak shut down large parts of the global At the end of March, 80% of its stores around retail industry and operating expenses rose, the world were closed. while PayPal’s profit plunged 87.4% after it In the first quarter of 2020, net profit was boosted credit loss reserves. down 61.6% on last year, falling from 94.4mn to The decline tied in with the record drop in US 36.2mn euros, the company said. retail sales in March, indicating shoppers cut Munich Re back on non-discretionary spending. Analysts, however, bought into PayPal’s German reinsurance giant Munich Re said predictions that the second quarter would be yesterday it was dropping a key financial target far brighter as more consumers get back to for 2020, after the first quarter was marked by a work and the boost the crisis has given to online billion-euro blow from the coronavirus crisis. sellers beds down. So-called “man-made major losses” more The company reported “unprecedented” use than tripled to 973mn euros ($1.0bn) in of its platform over the past month, adding a January-March, Munich Re said, “mostly due record 7.4mn net new customers for the month to losses stemming from the cancellation or of April. postponement of major events on account Square, best known for its signature small of the coronavirus pandemic”. As a reinsurer, white credit card readers that are plugged into Munich Re’s job is to cover insurance companies smartphones, also said it had seen improving against the risks inherent to their business. payment volume growth rates since mid-April. The virus impact contributed to slashing net At least 11 brokerages raised their price target profit 65% year-on-year, to 221mn euros. on PayPal following its results, while eight Nevertheless, “the high losses due to Covid-19 brokerages did the same on Square. are manageable for Munich Re,” finance director Puma Christoph Jurecka said in a statement. Equinor has suspended its 2020 oil and gas The 3% year-on-year rise in quarterly output stake in Swedish rival Lundin Energy for 3.3bn While it had in March dropped a company-wide output guidance amid government-imposed was mainly due to the ramp-up of its Johan Swedish crowns. German sportswear maker Puma has secured goal of 2.8bn euros of net profit in 2020, the curtailments and a glut of supply, and could Sverdrup oilfield, the largest in Western The company reported a $0.71bn net loss after €625mn ($675mn) in government loans to first-quarter result prompted the financial firm take further action to scale back activity Europe, which reached phase-one plateau taking net impairments of $2.45bn due to a help mitigate the effects of the coronavirus to abandon its annual goal of a 2.3-billion-euro this year, the Norwegian energy firm said production of 470,000 barrels per day in late reduction in the short-term oil price outlook. pandemic, the company said yesterday. profit in its core reinsurance business. yesterday. April, it added. Equinor now expects the average Brent oil price Puma said it had won a new credit facility of Munich Re also highlighted “considerable With operations from the North Sea to Africa, Equinor reiterated its plan to cut capital in 2020 to be at $31 a barrel compared to the €900mn through a consortium of 12 banks, uncertainty pertaining to further developments the Americas and Asia, Equinor had expected spending to $8.5bn this year from $10bn in 2019, previous view of $59 a barrel. including 625mn euros from German state- in the coronavirus pandemic and its economic 7% output growth this year before Norway, and said it now expected spending for 2021 to Warner Music Group owned investment bank KfW. impact” that could weigh on business Brazil and others joined Opec and its allies in be about $10bn from a previous view of $10bn Unlimited loans from KfW are part of a wide- throughout the year. ordering production cuts as the coronavirus to $11bn. Warner Music Group said yesterday it received pandemic roiled oil markets. Adjusted earnings before interest and tax (EBIT) an approval to list its shares on the Nasdaq The company would prioritise “value over fell to $2.05bn in the first quarter from $4.19bn stock exchange in what could be a rare initial volume” and after having already reduced in the same period of 2019. public offering after the Covid-19 pandemic activities, particularly in the US onshore A poll of 29 analysts compiled by Equinor had forced a number of companies to put their plans sector, it would consider further reductions, forecast adjusted EBIT of $2.0bn. on hold. Equinor CEO Eldar Saetre told a news Equinor had already cut its quarterly dividend The recording label, home to artistes including conference. by two-thirds to $0.09 per share, becoming Cardi B, Ed Sheeran and Bruno Mars, said He later told Reuters more global oil production the first major oil company to do so after oil yesterday it had been approved to list its Class curtailments were needed to normalise the prices crashed to their lowest in more than two A common stock under the symbol “WMG”. market, dismissing some analysts’ predictions decades. Warner, which filed for an initial public offering that oil prices could already rebound to $50 per Equinor had also suspended its $5bn share in February, was bought by billionaire Len barrel and more. buy-back programme, and slashed its capital, Blavatnik’s investment group, Access Industries, “There is still a huge (supply) overhang and it exploration spending and operating costs by a for about $3.3bn in 2011. could take us until 2022 before we can see a total of $3bn. The world’s third-largest music recording label more normal market,” said Saetre. The company last cut its dividend payment had in March delayed it plans to kick off the Equinor, however, maintained its long-term during the financial crisis in 2008-2009. debut — set to be one of the year’s larger IPOs, forecast for average output growth of 3% During the previous oil market downturn in raising in excess of $1bn, Reuters reported, per year in the period from 2019-2026, after 2014-2016 it opted to pay part of the dividend in citing people familiar with the matter. reporting a record 2.23mn barrels of oil shares instead of cash. Warner posted a net loss of $74mn in the second equivalent per day production in the quarter. On Wednesday, the company divested its 4.88% quarter ended March 31, compared with a profit Friday, May 8, 2020 GULF TIMES BUSINESS

British Airways owner IAG taps UK funds to survive slump

Bloomberg British Airways is planning to slash IAG’s reserves had increased to €10bn in London, taking declines this year “What I’ve always been opposed to is industry’s deepest job cuts has been London 12,000 jobs or 30% of the workforce, ($12.4bn) at the end of April. to 70%. Air France-KLM fell 3% after where inefficient failing companies met with hostility from UK politicians and is considering plans to close its That puts the company in a “very posting a first-quarter net loss of €1.8bn receive bailouts from governments,” and labor groups, especially since it secondary hub at London Gatwick strong liquidity position” and means from “over-hedging” on fuel and is he said on the analyst call. “Where has tapped furlough funds meant to British Airways parent IAG SA tapped airport. it should be able to “outlast many down 59%, with Lufthansa off 52%. Air airlines have been unwilling or unable safeguard workers. UK government-backed loans to boost “We do not expect passenger demand peers” in an extended slump, Sanford France-KLM Warns Rebound Will Take to reform, they should not be bailed out IAG reiterated that it’s too early to liquidity, in a sign of the damage being to recover to the level of 2019 C Bernstein analyst Daniel Roeska said Years as Losses Mount Walsh said the by receiving free money.” provide an earnings outlook. wrought by the Covid-19 pandemic on before 2023 at the earliest,” Walsh in a note. British funding, which comes after the Governments worldwide are devoting That’s after it last week reported an even the industry’s strongest players. said.“Balance sheets are going to be IAG’s downsizing will see it take delivery Iberia and Vueling units tapped €1bn in more than $85bn to rescue plans, operating loss of €535mn for the first IAG accessed £300mn ($371mn) from very different when we come out of of only 75 planes over the next three loans backed by a Spanish state bank, including mammoth funding programs quarter even before a hit from fuel the Coronavirus Corporate Finance this. years instead of the planned 143. is commercial paper available because for some of IAG’s biggest rivals. hedges, and warned that the result for the Facility in the second week of April, it Structural reform is going to be It will also assess an early retirement of of IAG’s “great credit rating.” He said the Air France-KLM has won European current three months will be worse again. said yesterday, taking state-supported required on an industry basis and not inefficient four-engined Boeing Co 747s company will make use of government- Union approval for €7bn in French Walsh predicted more airline failures borrowing to $1.45bn including Spanish just on an individual airline basis.” and Airbus SE A340s, and could cut supported general facilities where aid, with more to come from the and consolidation as carriers fail to funds. Air France-KLM also said yesterday more planes with leases up for renewal available. Netherlands, and Lufthansa is in talks adapt to the new environment and The group, which initially signaled it that demand will take years to revive as in the next two years. The CEO had initially said IAG wasn’t on a €10bn package that could see struggle to repay the funding they’ve wasn’t seeking aid, said it’s essentially the virus upends travel and weighs on While the focus for the moment is on applying for bailouts and earlier in the Germany take a 25% stake. tapped. grounded until July. economies. maximising cash, much of what IAG has year opposed a proposal to help now- Walsh, who will leave on September The CEO said a letter of intent to buy Chief executive officer Willie Walsh Deutsche Lufthansa AG’s Austrian raised in recent months has been via defunct Flybe, one of the virus’s first 24 after delaying his retirement, said Boeing Co 737 Max jetliners remains said London-based IAG needs to Airlines is the latest carrier to plan short-term facilities and those will need airline victims. British Airways is consulting with in place and that IAG is progressing restructure in all areas as it slims swingeing job cuts, with 1,100 of 7,000 to be refinanced, chief financial officer He said in March he thought airlines employee representatives at Gatwick with plans to buy Spain’s Air Europa, down for a tougher future amid an posts set to go over three years, the Steve Gunning said on an analyst call. should be expected to “look at self- after initiating a formal process there. though the deal has a price-adjustment “unprecedented” slump. Austrian Press Agency reported. IAG traded 4% lower as of 11:35 a.m. help” before calling for aid. BA’s announcement of some of the mechanism that could be applied.

Canada job pain to deepen with losses BoE says more stimulus beyond service sector

Bloomberg according to a separate survey Ottawa by the agency. Indeed data suggest job postings for construction possible in June as Women bore the brunt of early have fallen in line with overall Covid-19 job losses in Canada labour-market losses.“The hit but the playing field will likely might not have been too great level off after social distancing in March but we could see measures prompted more troubling numbers in nationwide layoffs. April,” Bernard said by phone. More than 1mn Canadians While Friday’s jobs report is UK economy craters lost their jobs in March, with likely to show a more even the pain concentrated in the split between female and Bloomberg the end of the third quarter. The govern- services sector and women male employment losses, London ment’s programmes “are working,” Bailey disproportionately accounting it’s still out of the ordinary, said in the Bloomberg TV interview, but for more than 60% of the according to Mike Moffatt, an “there’s an uncertain exit path from the losses. April numbers are due assistant professor at Western ank of England governor Andrew furlough scheme.” this week and economists are University’s Ivey School of Bailey made clear that policymak- Other European countries started to expecting the cuts to be even Business in London, Ontario. Bers could expand monetary stimu- lift parts of the lockdown this week. worse. “That’s very different than lus as soon as next month as the UK faces In the UK, the government is consid- “It will be far more your typical recession which potentially the worst economic slump in ering easing some of the more stringent widespread and we will see tends to be an 80/20 split,” Europe. measures, though the economy will likely more industries that are Moffatt said.“The job losses His pledge to “act as necessary” sug- continue to need support. connected to men’s jobs are experienced 80% by men gests bond buying could be expanded for Jonathan Haskel and Michael Saunders affected,” according to Armine just because goods producing as long as needed, creating a programme were the officials who wanted to lift asset Yalnizyan, a research fellow sectors like construction and without limits. purchases. at the Atkinson Foundation manufacturing tend to be Bailey said he makes no distinction Most MPC members said there was focusing on the changing more sensitive to the business between having a target for quantitative value in waiting for more information on nature of work. cycle or at least have been easing and an open-ended commitment, how the lockdown will be relaxed. The closing of schools and historically.” as the Federal Reserve and European Cen- The benchmark interest rate was left at childcare centers — where That suggests the recovery tral Bank have effectively done. a record-low 0.1% in a unanimous deci- many women work — is will be different as well. The BoE “could do more QE” in June, sion. one reason why female Both Moffatt and Yalnizyan Bailey said in an interview with Bloomb- Asked if rates could be cut below zero, employment took such a agree service-sector jobs wont erg Television.“We’re keeping all options Bailey said “I don’t want to say we’re hit in the early days of the bounce back as fast, therefore open.” nearer to negative rates, but we’re not rul- coronavirus pandemic, female employment will have Bailey spoke after the BoE’s latest de- ing anything out.” Still, the central bank is Yalnizyan said in an interview. a tougher time rebounding. cision, which saw two of its nine policy “nowhere near” using that tool, he added. While economists have started “Once things start to return makers vote to immediately increase QE The BoE assumes the UK economy re- to call the sharp downturn a to normal, it’s probably going by £100bn ($124bn). The rest agreed that covers all its lost growth by late 2021. “she-cession,” April’s numbers to be a female-dominated downside risks “might necessitate fur- That’s relatively optimistic compared may not accentuate female recession again just because ther monetary policy action.” with the eurozone, where the ECB central employment losses as much the sectors that should be They noted that the current target of scenario doesn’t see a return to pre-virus given huge swathes of the able to come back quickly £645bn will be hit by July, suggesting an strength until well into 2022. economy are now suffering. tend to be a little-more male increase at June’s meeting. The pound rose on that projected re- Canada probably lost more dominated,” Moffatt said. “We’ve still got quite a bit of road left bound and the decision not to increase than 4mn jobs on the month, Discussions around the on that programme and we’ll keep going bond-buying right away. representing a fifth of the reopening of the economy down that road,” Bailey said in a press Bank of England governor Andrew Bailey says he makes no distinction between It was up 0.1% to $1.2365 at 12:04pm labour force and by far the already suggest more male conference. having a target for quantitative easing and an open-ended commitment, as the UK time. largest decrease in monthly centric businesses will open With its main rate at 0.1%, and the BoE Federal Reserve and European Central Bank have effectively done. Yesterday, BoE policy makers also employment on record, up first such as golf courses, reluctant to go below zero, QE has become warned that if banks don’t help compa- according to a Bloomberg marinas and lawn care. the main policy tool to help the economy. central bank loosens again. We expect 2021, the slump for this year is far sharper nies through the cashflow strains of the survey of economists. “We are looking at initially, in Under a scenario published yesterday, more QE to be announced in June.” than the 8.3% predicted by the European virus lockdowns, there’ll be huge damage Brendon Bernard, an Ontario, a recovery and that the central bank said the economy could Like the Fed and the ECB, the BoE Commission on Wednesday and more to the economy, and to banks themselves. economist at job-search will not be captured by the shrink 14% this year because of coronavi- has slashed interest rates and increased than projected by the Office for Budget Restricting lending could lead to a platform Indeed Canada, will April data,” Yalnizyan said. rus restrictions. quantitative easing since March to keep Responsibility, the UK fiscal watchdog. cascade of insolvencies, higher unem- be watching the construction Schools and childcare centers That would be the biggest contraction the economy afloat as activity ground to It’s also deeper than the downturns ployment and falling house prices, all of sector closely in Friday’s are likely to be some of the since 1706. a halt. predicted for Italy and Spain, though the which would ripple back to the financial report, due at 8:30am from last places to recover amid the Bailey, who pledged “total and unwa- Most of the hit to the economy will assumptions for the projections may not industry. Statistics Canada in Ottawa. public-health crisis. vering commitment” to safeguard the come this quarter, with GDP expected by line up exactly. “Continued expansion of bank credit The field didn’t suffer much Without childcare, women economy during the crisis, told reporters the BoE to be 30% lower compared with That BoE view is based on social dis- is essential if deeper and longer lasting in March but since then may opt to stay at home to that the fact no action was taken this time the end of last year. tancing measures and government sup- damage to the economy is to be mitigat- companies in the industry take care of their kids and out doesn’t rule out a response soon. Unemployment more than doubles to port remaining as they are until early ed,” the BoE said. “It is in the collective reported significant layoffs, of work for longer. “It’s only a matter of time before the 9%. While it expects a strong rebound in June, before gradually being unwound by interest of banks.” O2, Virgin Media to merge into £38bn UK telco giant

AFP in UK digital infrastructure and give millions Madrid of consumers, business and public sector customers more choice and value.” O2 is one of the few operators to have its own Telefonica and Liberty Global yesterday said wireless network in the UK where it has 34mn they would merge their UK units O2 and Virgin mobile customers and access to several million Media to create a £38bn telecoms giant that via virtual operators like Tesco Mobile that use could shake up the British market. the O2 network. The mega-deal is the biggest tie-up to be Virgin Media, which was purchased in 2013 by unveiled since the coronavirus pandemic hit Liberty Global, the Colorado-based cable giant home in March, sending most of the planet into controlled by US tycoon John Malone, counts lockdown and dealing a major blow to the global six million cable subscribers and 3.3mn mobile economy. customers. Until now, O2, which is owned by Spain’s Alvarez-Pallete said it was Telefonica’s “biggest- Telefonica, and Virgin Media, which is owned by ever deal”. He said it had “not yet been decided” US cable giant Liberty Global, have been rivals. who would head the new company with the The merger values O2 at £12.7bn and Virgin management to be chose by the time the deal Media at £18.7bn, and is expected to deliver closes in mid-2021. synergies worth £6.2bn, pushing the total “The operation makes strategic sense,” value of the operation close to £38bn (€43bn, Bankinter analysts said in a note. $46.6bn). The deal will pile pressure on BT, the “O2.. only offers mobile services while Liberty highly-indebted British operator that owns the offers broadband internet, fixed-line telephony EE mobile network. and television. Telefonica chief executive Jose Maria Alvarez- So their tie-up will create an integrated telecoms Pallete said the merger would create “the offering that will be a strong competitor for BT, leading operator in the United Kingdom” that which has led the sector until now,” would be “a game-changer” in the British The merger will see the new company taking the telecoms sector. number one spot in the British telecoms sector “We are creating a strong competitor with “with a 34% market share compared with BT’s significant scale and financial strength to invest 32%”, it said.