CASH CRUNCH | Page 2 Egypt’s new desert capital faces delays

Tuesday, May 14, 2019 Ramadan 9, 1440 AH CASH BUYOUT DEAL : Page 12 Onex to buy Canada’s GULF TIMES WestJet for $2.6bn in largest PE-backed BUSINESS aviation acquisition Businesses and individuals set to Meeza and Huawei benefit significantly from Qatar’s launch RECaaS 5G rollout: OBG By Pratap John Business Editor

Qatari individuals and businesses are both set to benefit significantly from the rollout of 5G services as “enhanced connectivity and faster download times boost data services solution worldwide performance,” Oxford Business Group (OBG) has said in a report. The government, it said, will be looking to be able to leverage new eeza, Qatar’s prominent end- technology and incorporate it into various smart systems and to-end managed IT services & networks that are being rolled out across new urban developments. Msolutions provider, launched Moving forward, OBG said “the authorities will continue to provide the Recovery as a Service (RECaaS) an effective regulatory framework for the sector while fostering a solution in partnership with Huawei climate in which both businesses and entrepreneurs can harness Technologies to off er “world-class” re- the potential of emerging technology and capitalise on the new covery services through its centralised opportunities it creates.” ‘Business Cloud’ platform. In its The Report: Qatar 2019 OBG said Qatar’s ICT market is well RECaaS will enhance Meeza’s existing established, and characterised by high levels of mobile and Internet ‘Disaster Recovery and Cloud Service’ penetration rates. Internet services are both affordable and quick, off erings within the local, regional and with fibre-based connections available. The country’s two main international markets. telecommunications operators – Ooredoo and Vodafone – are also RECaaS aims to pave the way for fur- working to roll out 5G services in all heavily populated areas of the ther growth for Meeza, bolstering its country. business cloud services expansion in On the IT side, officials are working to strengthen the sector, with target markets globally. plans for the development of a new smart city, e-government “Businesses nowadays cannot aff ord services and start-ups currently in the works. downtime and instead need to be able In September 2018, HE the Minister of Transport and to pre-emptively tackle disruptions. Communications, Jassim Seif Ahmed al-Sulaiti said that Qatar’s ICT The launch of RECaaS in partnership sector was estimated to be worth $3.9bn in 2017 and is expected to with Huawei equips us with a range of grow by 3.2% per year to $4.4bn in 2021. services that are scalable, secure, and The minister also noted that the sector contributed 2.7% of GDP in cost eff ective, delivering ever increas- 2017. ing value to our clients. Our innova- The International Telecommunication Union (ITU), which falls under tive recovery solutions will protect the the umbrella of the UN, ranked Qatar 39th out of 179 countries in its day-to-day operations of our clients. Global ICT Development Index of 2017, three places lower than in Meeza’s DRaaS and BaaS (Back up as a 2016. The index awards points based on access to fixed and mobile Service) off er clients a fl exible recovery telephone services, Internet services, and schooling. platform to ensure business continuity”, “Despite the ongoing blockade, there have not been any cuts to said, Ghada Philip El Rassi, executive The launch of RECaaS in partnership with Huawei equips Meeza with a range of services that are scalable, government spending on ICT and the digital transformation of the board member and chief executive of- secure, and cost eff ective, delivering ever increasing value to the clients country’s economy,” Yousef al-Naama, CEO of Malomatia, a Doha- fi cer (Expansion) Meeza. headquartered technology services and solutions provider, told “Disruption to IT infrastructure, sys- multiple recovery point and time objec- (DRaaS) off ering continuous real time, we are committed to improving online OBG. tems and applications are inevitable in tives available we provide true fl exibility byte-level replication, automated full or business operations, contributing to “This signifies their dedication to modernising and strengthening any business; balancing how quickly for any disaster recovery requirement ei- partial failover, hardware agnostic, pro- smooth economic growth by minimising the economy,” he said. businesses can recover from an outage ther on premise, or within hybrid public vides snapshot and CDP Features with disruption. The combination of Meeza’s Qatar is investing in 5G technology and once established, it will versus the cost of deploying complex re- cloud workloads”, said, David Wilds, ex- multiple recovery point and time objec- existing state-of-the-art data centres allow peak internet connection speed to reach 1 Gbps, create higher covery solutions is a challenge for every pansion operations executive, Meeza. tives. BaaS provides an extremely cost- and Huawei’s leading infrastructure, communication capacity and allow for an increase in the number of organisation. Our RECaaS off ering pro- Meeza’s unique, centralised and uni- eff ective backup and archiving solution industry and business technology solu- mobile broadband users, OBG said. vides a comprehensive and cost eff ec- fi ed business cloud platform is hosted hosted within the Meeza local cloud. tions will allow clients to focus on their The deployment of advanced technology runs alongside the Qatar tive portfolio of recovery services that across multiple TierIII data centres Huawei Technologies CEO Qatar business off erings without having to National Vision 2030, the country’s development plan to diversify deliver simplicity through orchestration, based in Qatar, the main recovery serv- Frank Fan said, “As a leading ICT and worry about the security and safety of the economy and reduce dependency on hydrocarbons. automation and rapid provisioning. With ices are Disaster Recovery as a Service global infrastructure service provider, their digital assets.” China defies Trump with new round of tariffs on US goods Ezdan Holding nullifi es

Reuters the trade dispute and urged its leaders, including Washington/Beijing President Xi Jinping, to continue to work to reach a proposal to delist from QSE deal. “China should not retaliate-will only get worse,” Trump said on Twitter. China said yesterday it would impose higher tariff s on “I say openly to President Xi & all of my many friends zdan Holding Group has nullifi ed its earlier a range of US goods including frozen vegetables and in China that China will be hurt very badly if you don’t proposal to become a private entity by delist- liquefied natural gas, striking back in its trade war with make a deal because companies will be forced to leave Eing from the Qatar Stock Exchange (QSE) in Washington after US President Donald Trump warned China for other countries,” he wrote. view of the robust momentum in the domestic it not to. The US president, who has embraced protectionism economy. The move, widely expected after the US last week as part of an “America First” agenda, stepped up his In its general assembly held on Sunday, the raised tariff s on $200bn in Chinese imports, verbal attacks on China on Friday after two days of shareholders “agreed to waive its previous decision heightened fears the world’s two largest economies high-level trade talks in Washington ended with the (dated May 24, 2017) concerning the approval in were spiralling into a no-holds-barred dispute that two sides in an apparent stalemate. principle the transformation Ezdan Holding Group could derail the global economy. Top White House economic adviser Larry Kudlow said from a public shareholding company to a private China’s finance ministry said it plans to set import on Sunday there was a “strong possibility” Trump will shareholding company.” tariff s ranging from 5% to 25% on 5,140 US products on meet Xi at a G20 summit in Japan in late June. Ezdan board had held a meeting on April 6 to a revised $60bn target list. Trump has accused China of reneging on consider the request of one of the shareholders of It said the tariff s will take eff ect on June 1. commitments it made during months of trade Al Tadawul Trading Group, which owns more than “China’s adjustment on additional tariff s is a response negotiations, which Beijing has denied. 25% stake, regarding nullifying the earlier proposal. to US unilateralism and protectionism,” the ministry China tried to delete commitments from a draft The letter presented by one of the shareholders said. “China hopes the US will get back to the right agreement that its laws would be changed to enact stated that this request is based on the strength of track of bilateral trade and economic consultations new policies on issues from intellectual property the Qatari economy, despite the challenges, espe- and meet with China halfway.” protection to forced technology transfers. cially during the blockade period, and considering The White House and US Trade Representative’s off ice That dealt a major setback to the talks. that the QSE was one of the best performers in the did not immediately respond to requests for comment. In the middle of the negotiations last week, Trump Arab region in 2018. Global equities tumbled, with MSCI’s gauge of stocks hiked tariff s on Chinese goods to 25% from 10%. The According to the Article 138 of the Companies across the world on pace for its biggest one-day drop move aff ected 5,700 categories of Chinese products Law No 11/2015, the extraordinary general assem- of 2019. including internet modems, routers and similar bly shall meet only at the invitation of the board of Major Wall Street stock indexes were down about devices. directors. “The board shall direct such an invita- 2.5%. China’s yuan currency fell to its lowest level since Trump has since ordered US Trade Representative tion if so requested by a number of shareholders December. Robert Lighthizer to begin the process of imposing representing (25%) stake at minimum of the com- “It’s clear that there is a lot of nervousness around tariff s on all remaining imports from China, a move pany’s capital,” it added. the US-China trade negotiations and concern that that would aff ect another $300bn worth of goods. The index committee of the QSE had decided it’s really deteriorating pretty significantly, and that’s US tariff s last year triggered retaliation by China, to temporarily remove Ezdan Holding Group from impacting all areas of markets,” said Kristina Hooper, which imposed 25% levies on $50bn worth of US the components of QSE index after the company chief global market strategist at Invesco in New York. products including soybeans and beef and lower agreed in principle to delist. Earlier, the QSE had Earlier yesterday, Trump told China not to intensify tariff s on a list of $60bn in goods. Pages 6, 10, 11 appealed to Ezdan to reconsider their resolution to The QSE was one of the best performers in the Arab region in 2018 delist. Gulf Times 2 Tuesday, May 14, 2019 BUSINESS

Strait of Hormuz, the world’s most important chokepoint for oil

Bloomberg waterway for global trade in crude oil, lanes would probably re-open within London with tankers hauling about 17.5mn barrels weeks, but even a temporary halt would passing through it daily, Bloomberg tanker test the limits of strategic oil stockpiles tracking shows. That’s equal to about 40% held around the world, including in the Iran is threatening to block all oil of all the crude traded internationally. All US. shipments through the Strait of Hormuz oil exports from Kuwait, Iran, and Bahrain, Has the strait ever been closed? if the US succeeds in halting exports from more than 90% of those from Saudi Arabia the Gulf nation. Here’s why the waterway and Iraq, and 75% of shipments from the The waterway has never been closed to matters so much to the global economy. UAE pass through it. traff ic, although the threat has been made What is the Strait of Hormuz? Could Iran close the strait? on several occasions. During the 1980- 1988 Iran-Iraq War, Iraqi forces attacked It’s a V-shaped body of water that The shipping lanes through the strait Iran’s oil export terminal at Kharg Island, connects the Arabian Gulf to the Indian itself lie in Omani territorial waters, but in part to provoke an Iranian retaliation Ocean. Iran is to the north and the UAE immediately to the west they pass either that would draw the US into the conflict. and Oman to the south. It’s about 96 miles side of the Tunb Islands, seized by Iran in Although Iran didn’t try to shut the strait, long and 24 miles wide at its narrowest 1971. The shallow depth makes shipping the so-called Tanker War significantly point. The shipping lanes in each direction vulnerable to mines, while the proximity raised the cost of insuring vessels, are just two miles wide, with a 2-mile to Iran leaves large tankers open to increasing the cost of oil exports. When buff er zone between them. attack from shore-based missiles. While sanctions were imposed on Iran in 2011, A MH-60S helicopter hovers in the air with an oil tanker in the background as the USS John C Stennis makes its Why is it important? the Iranian navy may be no match for the threats were made to close the strait, but way to the Gulf through the Strait of Hormuz in this file photo dated, December 21, 2018. The strait is the single US Fifth Fleet and other forces, it could these were subsequently denied by Iran’s most important waterway for global trade in crude oil, with tankers hauling about 17.5mn barrels passing through The strait is the single most important still do considerable damage. Shipping foreign ministry. it daily, Bloomberg tanker tracking shows.

Turkish lira Egypt desert capital plan faces declines, reversing delays as it battles for funds eff orts by

Reuters state banks Cairo

Reuters gypt’s government wants to Ankara/Istanbul start running the nation from a Enew capital in the desert from mid-2020, but the $58bn project is he Turkish lira tumbled yesterday struggling to raise funds and needs to as investor concerns about po- overcome other challenges after in- Tlitical uncertainty resurfaced, re- vestors pulled out. versing gains from late last week when, Workers are rushing to build core sources told Reuters, state banks sold areas of the new city to replace Cairo, billions of dollars to support the cur- the existing capital on the Nile that rency. has become a traffi c-clogged, urban The lira weakened to as far as 6.10 sprawl of more than 20mn people. against the dollar, dipping from a close The project, launched in 2015 by of 5.9955 on Friday. Abdel Fattah al-Sisi a year after he On Thursday it hit its weakest level in was fi rst elected president, aims to more than seven months at 6.2460. off er a clean and effi cient base for the The lira had fi rmed overnight, touch- government and fi nance industry, as ing a level of 5.9610, before retreating as well as homes for at least 6.5mn peo- morning trade increased. ple. A treasury desk dealer at one bank But the project, which also seeks said lira moves in thin overnight trade to lift an economy dented by political were being reversed in more robust turmoil after 2011, lost a lead investor trade during the day, as was seen occa- from the UAE and is now being run by sionally over the last year when the cur- the Housing Ministry and the army’s rency weakened sharply overnight. Engineering Authority. “We are seeing pricing returning to “There is very strong interest from normal levels when trading volumes in- the political leadership in the project,” crease,” the dealer said. said Ahmed Zaki Abdeen, a retired Turkish state banks sold around general who heads the company $4.5bn last week, two sources told Reu- building the new city, told Reuters. ters, including a fl urry of selling late on But he said “the large scale of the Friday, to stem declines triggered by a work leads to large scale problems”, decision last week to re-run Istanbul’s such as fi nding enough skilled la- mayoral election. bour to wire up the “smart city” and In a separate offi cial eff ort to support raising about 1tn Egyptian pounds the currency on Thursday, the central ($58bn) in fi nancing over coming bank tightened policy by funding the years from land sales and other in- market at a higher rate. vestment. The lira has lost as much as 15% “We need very extensive fi nanc- against the dollar this year, with the ing and the state doesn’t have money latest weakness driven by the decision to give me,” said Abdeen, adding that to annul the Istanbul vote on March 31, about 20% of investment so far had which the main opposition party nar- come from abroad, including up to rowly won over the AK Party. $4.5bn from China. The main stock index fell 0.82%. The new city, known for now as the Investors were closely watching two New Administrative Capital, is even- bond auctions which the Treasury was tually expected to cover about 700 sq set to hold on Monday: a new issue of a km. Chinese construction labourers work at the site of the Iconic Tower skyscraper, at its foundations in the business district, being built by China State Construction 12-month zero coupon bond and a tap of The fi rst phase, covering about 168 Engineering Corp in the New Administrative Capital east of Cairo on May 2. The $58bn project is struggling to raise funds and needs to overcome other challenges a 5-year CPI-indexed bond. sq km, will have ministries, residen- after investors pulled out. Finance Minister Berat Albayrak said tial neighbourhoods, a diplomatic on Sunday in an interview with broad- quarter and a fi nancial district. wide roads run between empty plots the city, also being built by a Chinese been “postponed”, he added. Despite Egypt’s presidency and military made caster CNN Turk that the economy will With parks and tree-lined avenues, and part-fi nished buildings. fi rm, would be ready in 18 months. setbacks, Egypt’s general-turned- the project “too big to fail”, although hopefully overcome the impact of a cur- the city will consume an estimated Workers for China State Construc- Before then the city would be served president has been keen to show off he said that did not guarantee people rency crisis last year with just two quar- 650,000 cubic metres a day of wa- tion Engineering Corp (CSCEC) lay by electric buses, he said. the project, taking visiting French would want to live there. ters of contraction. ter from the North African nation’s foundations for the business district, However, a $20bn deal for the sec- President Emmanuel Macron on a “It’s one thing to have an army of Data from the central bank yesterday scarce resources. where 21 skyscrapers including Af- ond project phase agreed in 2016 with helicopter tour of the site in January. labourers and lots of machinery out showed the current account defi cit nar- At the construction site, about rica’s tallest at 85 stories are planned. China Fortune Land Development Co David Sims, author of Egypt’s there pushing dirt around but it will rowed to $589mn in March, less than a 45km (28 miles) east of Cairo, diggers Abdeen said he hoped a $1.2bn Ltd fell through over fi nancial terms. Desert Dreams, a book on develop- be another thing to see if it all comes Reuters poll forecast of $984mn and and cranes clutter the landscape and electrifi ed train link from Cairo to The second and third phases had ment projects, said the backing of together,” he said. down from $733mn in February. Qatar bourse extends losing run to 7th day amid US-China trade row

By Santhosh V Perumal Islamic equities were seen declining Takaful were among the prime gainers. The transport sector’s trade volume Business Reporter slower than the main index in the market, Non-Qatari institutions’ net profit booking rose more than five-fold to 0.76mn where Gulf individuals were also bullish. increased substantially to QR77.44mn stocks and value by almost eight-fold Trade turnover and volumes were on against QR6.35mn on May 10. to QR24.89mn on more-than-tripled The Qatar Stock Exchange continued its the increase in the bourse, where the However, domestic institutions’ net transactions to 372. bearish run for the seventh consecutive banking, industrials and real estate buying grew significantly to QR43.53mn The insurance sector’s trade volume day yesterday to lose 188 points, thus sectors together accounted for about compared to QR12.49mn on Sunday. more than tripled to 0.25mn shares and settling below 9,800 levels, mainly 82% of the total volume. Local retail investors turned net buyers value also more than tripled to QR7.23mn dragged by foreign funds. The Total Return Index shed 1.89% to to the tune of QR28.92mn against net on more-than-tripled deals to 236. An across-the-board selling – especially in 17,922.8 points, the All Share Index by sellers of QR0.42mn the previous day. The consumer goods sector’s trade realty, transport, insurance, telecom and 2.33% to 2,929.83 points and the Al Rayan The Gulf institutions’ net buying volume soared 96% to 0.45mn equities, banking shares – led the 20-stock Qatar Islamic Index (Price) by 1.55% to 2,228.9 strengthened perceptibly to QR5mn value by 91% to QR34.56mn and Index to decline 1.89% to 9,740.2 points, points. compared to QR0.63mn on May 10. transactions by 54% to 462. reflecting the global woes resulting from The real estate index plummeted 4.84%, The Gulf individuals were net buyers The realty sector reported a 72% surge in the US-China trade war. transport (3.61%), insurance (2.66%), to the extent of QR2.27mn against net trade volume to 2.68mn stocks and value A Kamco technical analysis suggests that telecom (2.59%), banks and financial sellers of QR1.38mn the previous day. more than doubled to QR34.77mn on medium-term and long-term investors services (2.56%), industrials (0.44%) and Non-Qatari individuals’ net profit booking more-than-doubled deals to 1,662. can stay in the market with a stop-loss consumer goods (0.3%). weakened perceptibly to QR2.3mn The telecom sector’s trade volume below 10,200 points and 9,700 points, More than 82% of the traded constituents compared to QR5mn on Sunday. expanded 49% to 1.42mn shares and respectively. were in the red with major losers being Total trade volume more than doubled value more than doubled to QR18.84mn However, domestic institutions were Ezdan, Mazaya Qatar, Barwa, Nakilat, to 15.71mn shares and value more than on more-than-doubled transactions to increasingly net buyers and local retail Milaha, Gulf Warehousing, Qatar doubled to QR328.99mn on more-than- 726. investors turned bullish in the market, Insurance, QNB, Commercial Bank, doubled transactions to 8,353. There was a 12% jump in the industrials whose sensitive index is down 5.43% Masraf Al Rayan, Qatar First Bank, The banks and financial services sector’s sector’s trade volume to 3.94mn equities, year-to-date. Alijarah Holding, Medicare Group, Aamal trade volume grew almost six-fold to 60% in value to QR71.75mn and 49% in Market capitalisation eroded about Company, Qatari Investors Group and 6.23mn equities and value by more than deals to 2,093. The 20-stock Qatar Index declined 1.89% to 9,740.2 points yesterday, QR11bn, or 1.97%, to QR542.14bn mainly Qatar National Cement; even as Mesaieed five-fold to QR136.95mn on almost- In the debt market, there was no trading reflecting the global woes resulting from the US-China trade war. owing to large and midcap segments. Petrochemical Holding and Al Khaleej tripled-deals to 2,802. of treasury bills and sovereign bonds. Gulf Times Tuesday, May 14, 2019 3 BUSINESS

India April inflation hits six-month high

Japan indicator points March to 4.57% in April. Reuters New Delhi This reflects severe demand slowdown,” said Rupa Rege Nitsure, chief economist at India’s retail inflation rate hit L&T Financial Holdings. a six-month high in April, due She said the contraction of to bigger increases in food industrial output has opened to recession amid prices, but remained below up space for monetary the central bank’s target easing in June. for a ninth month, keeping Figures released on Friday hopes alive for a June cut in showed annual industrial the key interest rate. output fell 0.1% in March Annual retail inflation in compared with a 0.1% rise April was 2.92%, up from the previous month. fresh Abenomics risks the provisional 2.86% in the The central bank has previous month, but slightly lowered its retail inflation Reuters below analyst forecasts, forecast to 3.8% by January- Tokyo government data showed March 2020, but warned it yesterday. could be higher if food and A Reuters poll had predicted fuel prices rise abruptly, or if apan may already be in recession, a an April retail inflation rate the fiscal deficit overshoots government assessment of its own eco- of 2.97%. targets. Jnomic indicators showed yesterday, as The inflation rate has fallen Economists said inflation the US-China trade war and weak external sharply from a peak of could pick up in coming demand hurt activity and pose fresh chal- more than 12% in November months as manufacturers’ lenges for Prime Minister Shinzo Abe’s 2013, which Prime Minister spare capacity was at its policies. Narendra Modi has touted tightest in over seven years The country’s indexes on leading and while seeking a second term and any shortfall in June- coincident economic indicators both de- in general elections that September rains could clined in March from the previous month, began on April 11. trigger a spike in food prices. the Cabinet Offi ce said. Votes will be counted on Retail food prices increased In its accompanying assessment on the May 23. 1.10% in April from a year coincident index, which combines readings While low inflation is helping earlier, up from 0.30% in such as factory output, employment and the economy, declining March. retail sales, the government described the farm incomes and record Core consumer inflation, state of the economy as “worsening”. That high unemployment have which strips out food and expression suggests a high possibility the hit consumer demand and fuel prices, was estimated at economy has already fallen into recession, economic growth. 4.53%-4.57% in April, lower the government stated in its guidelines on The economy likely grew than March’s 5.02%-5.08%, the index assessment. It also compares an annual 6.5% in January- according to two analysts with its previous assessment for February March, according to after seeing the inflation when it described the economy at “a turn- government estimates, figures released yesterday. ing point towards a downgrade”. slower than five-quarter low Retail fuel prices could also The last time the government used the growth of 6.6% in October- increase after the elections expression “worsening” in its assessment December. as state-run oil companies was between October 2012 and January This year, the monetary have largely held back from 2013. It later judged the economy was in Morning commuters cross a road in Tokyo. Japan’s indexes on leading and coincident economic indicators both declined in March policy committee of Reserve passing on the rise in global recession, often defi ned as two consecu- from the previous month, the Cabinet Off ice said. In its accompanying assessment on the coincident index, which combines Bank of India (RBI) has cut crude prices to consumers tive quarters of contraction in overseas. Ja- readings such as factory output, employment and retail sales, the government described the state of the economy as “worsening”. its benchmark repo rate during the campaign. pan releases its fi rst quarter gross domestic twice, reducing it to 6% and India meets 80% of its fuel product data on May 20 and is expected to The index of coincident economic in- as Japan’s exports and factory output were weakening foreign demand raised concerns many economists expect needs through imports. post a mild contraction for the period. dicators fell a preliminary 0.9 of a point in hit by China’s economic slowdown and the a postwar record growth cycle driven by another 25 basis point trim Prices of crude oil, India’s “The economy in the fi rst quarter per- March from the previous month. escalating US-China trade friction, which Abenomics may be over. If the economy in on June 6. biggest import item, have formed poorly. Factory output was clearly The index of leading economic indica- has disrupted global supply chains. April-June picks up, Japan may avert a re- “A significant deceleration gone up over 30% this year declined,” said Yoshiki Shinke, chief econ- tors, compiled using data such as job of- Prime Abe’s refl ationary policy mix cession, Shinke added. Also clouding the in inflation for clothing and to around $71 a barrel. omist at Dai-Ichi Life Research Institute. fers and consumer sentiment and seen as dubbed “Abenomics”, which combined outlook are plans to raise a sales tax to 10% footwear and miscellaneous Retail petrol and diesel “External factors such as China’s econo- a forward-looking gauge of the economy, bold monetary easing, fl exible fi scal policy from the current 8% in October unless a components has reduced prices in Delhi this year have my and the outlook for the US-China trade slipped 0.8 of a point. and structural reform, may be sputtering. big shock on the scale of Lehman Brothers’ core inflation from 5.06% in gone up about 6%. confl ict will continue to be a close focus.” Worries about the economy have grown Risks from the global trade confl icts and collapse in 2008 hits the economy. Gulf Times 4 Tuesday, May 14, 2019 BUSINESS

Indian passenger vehicles’ Asia refi ners brace for wholesale sales drop surge in spot oil prices Reuters New Delhi Reuters Singapore holesale sales of pas- senger vehicles in sian oil buyers are bracing for WIndia fell 17% year- surging prices in the spot crude on-year in April, their steepest Amarket as global supplies have decline since October 2011, data tightened after stringent US sanctions from the country’s auto industry on producers, disruptions of Russian body showed yesterday, as weak oil fl ows in Europe and maintenance at consumer confi dence and a li- oilfi elds in the Atlantic Basin and Asia. quidity crunch hit demand. Buyers have already paid a premi- Sales of passenger vehicles to um of $6 a barrel to benchmark Dubai car dealers dived to 247,541 in quotes for Russia’s Sokol crude for July April from 298,504 a year earlier, loading, the highest premium since data released by the Society of 2014. Indian Automobile Manufactur- The premium for July-loading Oman ers (SIAM) showed. crude futures to Dubai is at $3.46 a bar- Sales of motorbikes and rel, the most for this time of year in four scooters dropped 16.4% to about years. 1.6mn. The surging premiums are the result Retail sales of passenger vehi- of the confl uence of several factors lim- cles fell 1.28% in April, accord- iting global supply. ing to SIAM. Asian buyers were already competing “The sentiment in the market with US refi ners for the same pool of re- has not been good,” said Vish- sources after the United States imposed nu Mathur, director general at sanctions on supplies from Venezuela, SIAM, adding a recent funding forcing buyers to turn to the Middle crisis at shadow – or alternative East, Africa and Latin America for re- – banks had lowered liquidity for placements. dealers and car buyers, and a rise Oman prices are jumping as the US in car insurance costs had also stopped granting waivers to Iranian hurt sales. sanctions that have curtailed exports of The fall in car sales comes the so-called heavy crudes that it pro- amid a general slide in demand duces. for consumer goods in what is Asia’s demand for Russian and Mid- seen as a major sign of an eco- dle Eastern light grades such as Sokol nomic slowdown during the tail and Murban strengthened after arbi- end of Indian Prime Minister trage supplies from the Atlantic Basin An Indian Oil refinery in Paradeep, Odisha. Asian oil buyers are bracing for surging prices in the spot crude market as global supplies have tightened after stringent US Narendra Modi’s tenure. and the United States fell. sanctions on producers, disruptions of Russian oil flows in Europe and maintenance at oilfields in the Atlantic Basin and Asia. The drop in demand is also Rising domestic demand from refi n- at odds with the government’s ers has pushed premiums for US crude year. “With a tight supply side picture, Meanwhile, only one Indian buyer of Iran since November. In January-April Asia oil at Singapore-based consul- stated GDP growth rate of 7%. higher curbing exports. Saudi Arabia is unlikely to repeat its Iranian oil has taken up Saudi Arabia’s 2019 India received about 304,500 bpd tancy FGE. Modi is seeking a second term The contamination of Russian Urals mistakes from 2018 and with new re- off er of additional oil to make up for Iranian oil. When Iran was under sanctions in in a general election for which crude on pipelines into Europe and the fi neries in the region ramping up, Asian the loss of supplies from Tehran due to In June, Saudi Arabia will supply 2012, Saudi Arabia and Iraq had raised voting is underway and results longer-than-expected closure of the refi ners will need to pay up for barrels,” US sanctions, taking an extra 2mn bar- an additional 250,000 tonnes (2mn market share in Asia. are expected on May 23. North Sea’s Oseberg fi eld have caused said Virendra Chauhan, a Singapore- rels from the Kingdom for June ship- barrels) of oil to Mangalore Refi nery But since that time trade routes Wholesale sales of passen- benchmark Brent’s premium to Du- based oil analyst at consultancy Energy ment, industry sources said. (MRPL) on top of its normal require- have shifted with new supplies, in- ger vehicles have been slowing bai to surge above $3 a barrel, making Aspects. Last month, Saudi Arabia ap- ment of about 320,000 barrels (about cluding from the United States, com- since November and inventories Atlantic Basin oil more expensive for “We have heavy oilfi eld maintenance proached Indian buyers off ering them 2.5mn barrels), one of the sources fa- ing on to the markets. at carmakers have been rising, Asian buyers. in Norway and West Africa across May additional supplies to compensate miliar with the matter said. “Saudi will have to fill some of the leading some to cut production. Angolan crudes were already selling and June,” said Chauhan. for loss of Iranian oil after the United Another source said MRPL might void left by Iran but it will not be a one Maruti Suzuki Ltd, India’s at all-time high premiums as exports “All of these factors have been com- States threatened to sanction entities not lift the additional Saudi oil as the to one replacement,” Paravaikkarasu biggest carmaker which ac- have dropped due to fi eld maintenance pounded by the Russia contamination buying oil from Tehran, the sources refi ner had declared force majeure said. “Indian refiners’ oil import poli- counts for about half the market, while some Nigerian production were issue.” said. and shut half of its plant due to water cy is very flexible now and they are no cut production by 10% in April under force majeure. Several European buyers halted oil The United States had imposed new shortages. longer relying on one or two particular from a year ago, following sharp Cargoes of Middle East Murban imports from Russia via the Druzhba sanctions on Iran in November last Mangalore Refinery declined to producers.” declines in February and March crude are at premiums of about 75 pipeline after fi nding contaminants year, but gave a six-month waiver to comment. Indian refiners have raised optional output as well. cents a barrel for July loading, the most that could damage refi nery equipment. eight countries, including India, which There was no immediate comment volumes under annual contracts with Maruti’s wholesale sales of since 2015, according to Refi nitiv data, In Asia, Malaysia’s Kimanis crude allowed them to import some Iranian from IOC, HPCL, BPCL and Saudi key producers as well as testing new passenger vehicles fell 20% in while two trade sources said premiums exports will also fall sharply in July be- oil. Aramco. grades and origins to make up for loss April and last month it forecast a may have risen above $1 a barrel this cause of fi eld maintenance. India was able to buy about 300,000 “In our system, UAE and Iraq oil of Iranian oil. weak rate of growth for the cur- week. Asian refi ners are currently re-run- barrels per day (bpd) of Iranian oil un- turned out to be better than Saudi oil,” Also, US crude’s widening discount rent fi scal year. Refi ners are expecting to make up ning computer programmes that de- der the waiver. a source at one of the Indian refiner- to Brent has strengthened demand for Most other carmakers, in- the supply shortfall from Saudi Arabia, termine which crude grades are eco- But last month, Washington ended ies said. US crude exports. cluding Toyota Motor Corp, Ford though the country is likely to keep its nomical to buy as they factor in higher the waivers and said buyers should stop IOC, BPCL and HPCL have not “India wants to diversify away from Motor Co and Mahindra & Ma- exports below 7mn barrels per day to spot prices, while also considering Iranian oil purchases or face sanctions. placed a request for extra Saudi oil for Middle East because of lots of geopo- hindra, also cut production in avoid a price crash like the one at the whether to trim crude throughput, said Only state refi ners – Indian Oil Corp, June after the Kingdom raised official litical issues relating to the region,” April. end of 2018. two sources at diff erent North Asian Bharat Petroleum Corp, Mangalore Re- selling price for Asia, the sources said. Paravaikkarasu said. “The Middle East “The production cuts have Rising prices have pushed up costs refi neries. fi nery and Petrochemicals and Hin- “Saudi OSPs for June have been very will continue to be the mainstay for been eff ected by companies to for Asian buyers and could weigh on “Refi neries which are running at dustan Petroleum Corp – accounting strong, so Indians may have taken ex- Indian refiners but they would like to correct inventories, the process regional refi ning margins that are at maximum capacities may instead run for about 60% of India’s 5mn bpd re- tra from others at competitive rates,” tap new stable areas when it comes to is still on,” said Mathur. their lowest in fi ve years for this time of a little lower,” one of the sources said. fi ning capacity had purchased oil from said Sri Paravaikkarasu, director for requirement of incremental barrels.”

Tata Steel’s $13bn debt in focus on Thyssenkrupp rupture Pakistan PM Imran calls meeting Bloomberg Mumbai to discuss IMF deal

Internews The collapse of Tata Steel Ltd’s planned joint Islamabad venture with Thyssenkrupp AG has brought the Indian group’s more than $13bn of debt in focus, with no immediate prospect of its European unit Pakistan Prime Minister Imran Khan yesterday being hived off . summoned a high-level meeting to discuss the The deal would have transferred some of the country’s $6bn loan agreement with the Interna- debt to the joint venture, allowing the Mumbai- tional Monetary Fund, which was finalised last based company to sharpen its focus on ramping night following months of negotiations between up its Indian business. Tata’s European operations the two sides. have debt of €2.2bn ($2.5bn) and the joint venture The government’s deal with the IMF drew heavy was an “important strategic initiative” to create criticism from the opposition, as political opponents a sustainable portfolio in Europe, the company voiced concerns over an almost certain possibility of said Friday. The company’s group debt stood higher inflation and slowed economic growth in the at $13.15bn as of March end, the highest among coming months as the country implements the loan Indian steelmakers. conditions imposed by the global lender. “With the joint venture off the table now, the A session of the National Assembly is also set to big story of deleveraging of the consolidated convene later yesterday, where the opposition par- balance sheet will no longer be valid,” Vishal ties are expected to slam the bailout agreement and Chandak, an analyst at Emkay Global Financial voice their concern over rising inflation and slowing Services, said in a report. However, the end of the growth. merger is not the end of the road for Tata as it The latest agreement marks Pakistan’s 22nd will continue with its plans to repay $1bn of debt bailout with the IMF, as the country struggles to announced last month and invest in growth in stave off a looming balance-of-payments crisis while India, he said. its economy teeters due to low growth, soaring infla- Tata has been trying to find a solution for its Eu- tion, and mounting debt. ropean business since being hit by the 2016 com- “The programme aims to support the authorities’ modity crisis, though many of its troubles stem strategy for stronger and more balanced growth from before then. The Indian steelmaker bought Thyssenkrupp and Tata Steel had off ered concessions to regulators earlier this year to win antitrust approval for the European joint by reducing domestic and external imbalances, Corus Group Plc for about $13bn in 2007 to gain venture, including selling plants in Belgium, Spain and the UK. The companies said Friday that off ering further concessions would have improving the business environment, strengthening control of its European units, but has been closing undermined the business case for the deal. With increasing likelihood of the venture not being approved by the European Commission, institutions, increasing transparency, and protecting and selling plants in the UK since the 2008 finan- the two companies abandoned the merger. social spending,” said Ramirez Rigo, head of the IMF cial crisis to make the business more profitable. delegation, in a statement released late Sunday. The collapse of the planned joint venture comes the business case for the deal. With increasing where a government-led thrust on infrastructure longer run, management perhaps can execute its According to Pakistan’s finance adviser Abdul at a time when Europe’s steelmakers are facing likelihood of the venture not being approved by is supporting demand. Plans are underway to India focus, but in the near run as European out- Hafeez Sheikh, the country is set to receive $6bn headwinds from weak demand from carmakers the European Commission, the two companies double capacity in five years through expansions look weakens, the event will be a drag on group from the IMF in addition to $2bn to $3bn from the and high imports. Thyssenkrupp and Tata had abandoned the merger. at existing mills and acquiring indebted domestic profitability as well as leverage.” The brokerage World Bank and Asian Development Bank over the off ered concessions to regulators earlier this year “We are going to focus on deleveraging even mills. downgraded the stock to sell from hold with a next three years. to win antitrust approval for the European joint more,” chief financial off icer Koushik Chatterjee “The unwinding of a multi-year eff ort, leads target of Rs411 ($5.84). Shares of the company “We have a $12bn gap in our annual payments venture, including selling plants in Belgium, Spain said on a call Friday. “We are also going to look back to the original questions of sustainability and fell as much as 3.1% to Rs471.60 following a 6.2% and we don’t have the capacity to pay them,” Sheik and the UK. The companies said Friday that off er- at other assets sales, whatever we have in the leverage,” ICICI Securities Ltd’s analysts Abhijit fall Friday after the deal with Thyssenkrupp fell said in a televised address as he announced the new ing further concessions would have undermined portfolio.” Tata Steel is shifting its focus to India, Mitra and Rohan Jain said in a report. “Over the through. agreement with the fund. Gulf Times Tuesday, May 14, 2019 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 44.00 0.00 10,000 Oman Packaging 0.27 0.00 - Al-Madar Finance & Invt Co 154.00 -0.65 422,000 Qurain Petrochemical Industr 383.00 -1.03 775,012 Oman Oil Marketing Company 1.07 0.00 3,000 Gulf Petroleum Investment 22.50 -7.02 969,228 Advanced Technology Co 1,000.00 0.00 - Oman National Engineering An 0.15 0.00 - Mabanee Co Sakc 657.00 -0.90 869,121 Ekttitab Holding Co Sak 17.00 0.00 9,999 Oman Investment & Finance 0.08 0.00 - Inovest Co Bsc 75.00 0.00 - Real Estate Trade Centers Co 24.20 -19.60 174,800 Oman Intl Marketing 0.52 0.00 - Al-Deera Holding Co 14.00 0.00 - Acico Industries Co Kscc 140.00 -2.10 63,088 Oman Flour Mills 0.55 0.00 3,000 Mena Real Estate Co 38.00 0.26 395,415 Kipco Asset Management Co 78.00 0.00 13,772 Oman Fisheries Co 0.06 -1.69 135,256 Amar Finance & Leasing Co 30.80 0.00 - National Petroleum Services 1,000.00 0.00 - Oman Europe Foods Industries 1.00 0.00 - United Projects For Aviation 455.00 0.00 - Alimtiaz Investment Group 132.00 -2.94 970,416 Oman Education & Training In 0.23 0.00 - National Consumer Holding Co 30.00 0.00 - Ras Al Khaimah White Cement 61.50 0.00 - Oman Chromite 3.64 0.00 - QATAR Amwal International Investme 50.60 10.00 1 Kuwait Reinsurance Co Ksc 145.00 0.00 - Oman Chlorine 0.40 0.00 - Equipment Holding Co K.S.C.C 24.90 0.00 193,450 Kuwait & Gulf Link Transport 81.00 -3.23 250,025 Oman Ceramic Company 0.42 0.00 - Company Name Lt Price % Chg Volume Arkan Al Kuwait Real Estate 78.00 -2.50 55,350 Humansoft Holding Co Ksc 3,410.00 -0.87 92,858 Oman Cement Co 0.23 0.00 68,936 Gfh Financial Group Bsc 73.00 -1.88 610,452 Automated Systems Co Kscc 81.00 0.00 7,992 Oman Cables Industry 0.90 0.00 - Energy House Holding Co Kscp 29.00 -1.36 71,110 Metal & Recycling Co 0.00 - Oman & Emirates Inv(Om)50% -2.60 10,000 Zad Holding Co 120.10 0.08 4,188 89.00 0.08 Kuwait Co For Process Plant 231.00 1.32 90,805 Gulf Franchising Holding Co 0.00 - Natl Aluminium Products 0.00 - Widam Food Co 56.95 -0.78 31,867 59.00 0.34 Al Maidan Dental Clinic Co K 1,220.00 0.00 - Al-Enma’a Real Estate Co -5.28 794,300 National Real Estate Develop 0.00 - Vodafone Qatar 7.05 -4.21 1,259,320 35.90 5.00 National Shooting Company 13.80 6.15 100,002 National Mobile Telecommuni 0.00 5,500 National Mineral Water 0.00 - United Development Co 13.17 -1.86 565,820 680.00 0.09 Al-Ahleia Insurance Co Sakp 450.00 0.00 - Sanad Holding Co Kscc 0.00 - National Life & General Insu 0.00 - Salam International Investme 4.47 -1.97 211,241 110.00 0.30 Wethaq Takaful Insurance Co 30.00 0.00 - Unicap Investment And Financ -4.30 866,826 National Gas Co 0.00 1,000 Qatar & Oman Investment Co 5.75 -0.17 4,111 57.90 0.19 Salbookh Trading Co Kscp 47.90 -2.24 155,500 Al Salam Group Holding Co -4.29 568,567 National Finance Co 0.00 - Qatar Navigation 63.00 -3.42 216,593 33.50 0.14 Aqar Real Estate Investments 60.00 0.00 - Al Aman Investment Company -0.32 644,361 National Detergent Co Saog 0.00 - Qatar National Cement Co 61.90 -2.52 12,898 62.00 0.70 Hayat Communications 31.30 0.00 - Mashaer Holding Co Ksc 0.00 - National Biscuit Industries 0.00 - Qatar National Bank 176.00 -2.77 324,726 69.00 3.92 Soor Fuel Marketing Co Ksc 118.00 0.85 242,321 Manazel Holding 0.00 - National Bank Of Oman Saog -0.63 30,000 Qatar Islamic Insurance 51.02 -1.88 7,617 24.90 0.16 Tamkeen Holding Co 11.80 0.00 - Tijara And Real Estate Inves 0.00 - Muscat Thread Mills Co 0.00 - Qatar Industrial Manufactur 38.00 -0.78 93,143 49.50 0.08 Alargan International Real 120.00 -9.77 25,000 Jazeera Airways Co Ksc 2.46 96,030 Muscat Insurance Co Saog 0.00 - Qatar International Islamic 65.21 -1.20 31,213 876.00 0.84 Burgan Co For Well Drilling 90.00 0.00 - Commercial Real Estate Co 0.55 718,652 Muscat Gases Company Saog 0.00 - Qatari Investors Group 21.70 -2.38 48,131 91.50 0.16 Kuwait Resorts Co Kscc 56.20 0.36 60,000 National International Co 9.00 50 Muscat Finance 0.00 2,306,468 Qatar Islamic Bank 154.00 -1.33 124,422 76.30 0.06 Oula Fuel Marketing Co 116.00 -0.85 217,294 Taameer Real Estate Invest C 7.94 3,665,086 Muscat City Desalination Co 0.00 - Qatar Gas Transport(Nakilat) 20.11 -3.78 536,102 34.00 0.11 Palms Agro Production Co 40.00 0.00 - Gulf Cement Co 0.00 - Majan Glass Company 0.00 - Qatar General Insurance & Re 42.99 0.00 315 59.30 0.18 Mubarrad Holding Co Ksc 58.80 -2.00 235,157 Heavy Engineering And Ship B 0.00 317,877 Majan College 0.00 - Qatar German Co For Medical 5.82 -0.51 10,497 395.00 0.18 Shuaiba Industrial Co 150.00 0.00 - National Real Estate Co -1.96 141,526 Hsbc Bank Oman -4.17 110,100 Qatar Fuel Qsc 210.00 0.48 117,525 74.90 0.12 Aan Digital Services Co 12.00 0.00 158,500 Al Safat Energy Holding Comp 16.90 20 Hotels Management Co Interna 0.00 - Qatar First Bank 4.23 -9.42 4,333,965 24.90 1.25 First Takaful Insurance Co 44.00 0.00 - Kuwait National Cinema Co 0.00 - Gulf Stone 0.00 - Qatar Electricity & Water Co 160.00 -0.99 58,111 870.00 0.12 Kuwaiti Syrian Holding Co 50.20 -2.33 2,100 Danah Alsafat Foodstuff Co 0.00 10,450 Gulf Mushroom Company 0.00 - Qatar Exchange Index Etf 100.00 0.00 - 31.10 0.31 National Cleaning Company 65.00 3.17 53,521 Independent Petroleum Group -0.24 35,485 Gulf Investments Services -1.72 175,990 Qatar Cinema & Film Distrib 19.20 0.00 - 419.00 0.06 United Real Estate Company 59.00 0.00 - Kuwait Real Estate Co Ksc 2.25 13,005,978 Gulf Invest. Serv. Pref-Shar 0.00 - Al Rayan Qatar Etf 24.10 -0.41 48 72.60 0.11 Agility 736.00 -3.41 1,417,357 Salhia Real Estate Co Ksc -1.47 812,660 Gulf International Chemicals 0.00 - Qatar Insurance Co 35.03 -2.99 161,625 335.00 0.14 Kuwait & Middle East Fin Inv 36.00 5.88 20,700 Gulf Cable & Electrical Ind -0.27 8,678 Gulf Hotels (Oman) Co Ltd 0.00 - Qatar Aluminum Manufacturing 8.88 -3.58 1,428,250 367.00 9.50 Fujairah Cement Industries 53.60 0.00 - Kuwait Finance House -2.24 15,677,895 Global Fin Investment 0.00 1,069 Ooredoo Qpsc 62.10 -1.55 156,333 654.00 0.08 Livestock Transport & Tradng 198.00 10.00 500 Gulf North Africa Holding Co -0.92 1,171 Galfar Engineering&Contract -1.25 403,983 National Leasing 7.93 -3.06 130,348 54.00 0.08 International Resorts Co 20.30 0.00 - Hilal Cement Co 0.00 - Galfar Engineering -Prefer 0.00 - Mazaya Qatar Real Estate Dev 7.53 -3.59 239,637 125.00 0.39 National Industries Grp Hold 235.00 -0.84 4,993,032 Osoul Investment Kscc 0.00 - Financial Services Co. 0.00 - Mesaieed Petrochemical Holdi 20.89 3.98 534,145 59.10 0.18 Warba Insurance Co 72.70 0.00 - Gulf Insurance Group Ksc 0.00 1,010 Financial Corp/The 0.00 - Al Meera Consumer Goods Co 139.45 -0.46 38,398 625.00 0.10 First Dubai Real Estate Deve 31.00 -3.13 208,980 Umm Al Qaiwain General Inves 0.00 - Dhofar Tourism 0.00 - Medicare Group 54.50 -5.27 30,921 58.70 0.49 Al Arabi Group Holding Co 75.00 -9.64 11,000 Aayan Leasing & Investment -1.90 8,956,150 Dhofar Poultry 0.00 - Mannai Corporation Qsc 41.01 -2.36 510 41.20 0.18 Kuwait Hotels Sak 100.00 0.00 - Alrai Media Group Co Ksc 0.00 - Dhofar Intl Development 0.00 - Masraf Al Rayan 33.95 -3.08 498,689 43.50 0.30 Mobile Telecommunications Co 492.00 0.20 4,783,124 National Investments Co 0.88 803,435 Dhofar Insurance 0.00 4,000 Al Khalij Commercial Bank 11.50 -0.95 157,315 114.00 0.17 Eff ect Real Estate Co 20.00 -1.48 889,186 Commercial Facilities Co -2.40 157,000 Dhofar Generating Co Saoc 0.00 - Industries Qatar 112.95 -0.13 162,157 203.00 0.19 Tamdeen Real Estate Co Ksc 370.00 0.00 1,990 Yiaco Medical Co. K.S.C.C 0.00 - Dhofar Fisheries & Food Indu 0.00 - Islamic Holding Group 20.59 0.00 21,063 66.50 1.28 Al Mudon Intl Real Estate Co 19.00 2.70 185,850 Dulaqan Real Estate Co 0.00 - Dhofar Cattlefeed 0.00 - Investment Holding Group 5.68 -2.41 711,956 350.00 0.10 Kuwait Cement Co Ksc 317.00 3.93 9,289 Real Estate Asset Management 0.00 - Dhofar Beverages Co 0.00 - Gulf Warehousing Company 43.50 -3.33 3,522 171.00 0.26 Sharjah Cement & Indus Devel 72.00 0.00 - Construction Materials Ind 0.00 - Gulf International Services 17.27 -0.80 442,304 0.03 Kuwait Portland Cement Co 1,300.00 5.69 90,135 Computer Stationery Inds 0.00 - Ezdan Holding Group 8.70 -6.05 1,502,116 0.26 Educational Holding Group 320.00 0.00 220 Bankmuscat Saog 0.00 1,001,513 Doha Insurance Co 11.10 0.36 2,000 0.40 Bahrain Kuwait Insurance 200.00 0.00 - Bank Nizwa -1.14 763,592 Doha Bank Qpsc 22.15 -0.89 251,554 0.09 Asiya Capital Investments Co 35.00 -2.78 5,000 OMAN Bank Dhofar Saog 0.00 - Dlala Holding 9.30 -3.63 67,490 0.14 Kuwait Investment Co 128.00 0.00 - Arabia Falcon Insurance Co 0.00 - Commercial Bank Pqsc 45.00 -4.26 269,821 Company Name Lt Price % Chg Volume 0.11 Burgan Bank 325.00 0.62 638,034 Aloula Co 0.00 - Barwa Real Estate Co 32.54 -3.73 372,526 0.53 Kuwait Projects Co Holdings 217.00 -0.91 63,896 Al-Omaniya Financial Service 0.12 0.00 - Al Khaleej Takaful Group 14.40 1.84 76,988 Voltamp Energy Saog 0.17 -3.95 38,855 Al Madina For Finance And In 17.50 2.34 1,077,217 Al-Hassan Engineering Co 0.02 0.00 - Al Ahli Bank 8.06 -5.84 446,924 Vision Insurance Saoc 0.12 0.00 - Kuwait Insurance Co 330.00 0.00 10,000 Al-Fajar Al-Alamia Co 0.75 0.00 - United Power/Energy Co- Pref 1.00 0.00 - Al Masaken Intl Real Estate 70.00 0.00 - Al-Anwar Ceramic Tiles Co 0.09 0.00 836,384 United Power Co Saog 2.97 0.00 - Intl Financial Advisors 22.80 2.24 398,568 Al Suwadi Power 0.08 0.00 40,681 United Finance Co 0.07 0.00 - KUWAIT First Investment Co Kscc 36.10 -2.43 2,438,642 Al Sharqiya Invest Holding 0.08 0.00 4,930 Ubar Hotels & Resorts 0.13 0.00 - Al Mal Investment Company 16.20 -1.82 115,013 Al Maha Petroleum Products M 0.81 0.00 - Takaful Oman 0.13 0.00 - Company Name Lt Price % Chg Volume Bayan Investment Co Kscc 39.20 -1.51 27,777 Al Maha Ceramics Co Saoc 0.18 0.00 - Taageer Finance 0.10 0.00 - Egypt Kuwait Holding Co Sae 455.00 0.00 - Al Madina Takaful Co Saoc 0.08 0.00 332,630 Sultan Center Food Products 53.50 0.00 - Sweets Of Oman 0.55 0.00 - Coast Investment Development 37.90 -5.01 5,000 Al Madina Investment Co 0.03 -3.85 40,239 Kuwait Foundry Co Sak 254.00 1.60 4,510 Sohar Power Co 0.11 0.00 - Privatization Holding Compan 58.80 1.38 164,886 Al Kamil Power Co 0.38 0.00 - Kuwait Financial Centre Sak 89.90 -0.11 2,700 Sohar International Bank 0.11 -0.91 477,159 Injazzat Real State Company 83.50 -0.48 12,100 Al Jazerah Services -Pfd 0.55 0.00 - Ajial Real Estate Entmt 135.00 -1.46 2,500 Smn Power Holding Saog 0.09 0.00 - Kuwait Cable Vision Sak 24.00 0.00 - Al Jazeera Steel Products Co 0.27 0.00 - Kuwait Finance & Investment 40.00 -4.31 29,000 Shell Oman Marketing - Pref 1.05 0.00 - Sanam Real Estate Co Kscc 49.50 0.00 - Al Jazeera Services 0.11 2.80 14,990 National Industries Co Ksc 188.00 2.17 39,042 Shell Oman Marketing 1.07 0.00 - Ithmaar Holding Bsc 22.30 0.00 - Al Izz Islamic Bank 0.08 2.44 59,300 Kuwait Real Estate Holding C 27.80 -0.71 35,714 Sharqiyah Desalination Co Sa 0.30 0.00 - Aviation Lease And Finance C 262.00 0.00 15 Al Buraimi Hotel 0.88 0.00 - Securities House/The 48.50 -3.00 333,098 Sembcorp Salalah Power & Wat 0.12 -3.33 13,220 Arzan Financial Group For Fi 31.30 -0.63 886,010 Al Batinah Power 0.08 -1.27 9,000 Boubyan Petrochemicals Co 950.00 0.53 218,687 Salalah Port Services 0.60 0.00 - Ajwan Gulf Real Estate Co 12.00 0.00 199,180 Al Batinah Hotels 1.13 0.00 - Al Ahli Bank Of Kuwait 305.00 0.00 - Salalah Mills Co 0.56 0.00 - Kuwait Business Town Real Es 42.00 -0.47 450,127 Al Batinah Dev & Inv 0.08 0.00 - Ahli United Bank (Almutahed) 300.00 -2.28 1,626,895 Salalah Beach Resort Saog 1.38 0.00 - Future Kid Entertainment And 113.00 0.00 - Al Anwar Holdings Saog 0.10 -2.04 472,985 National Bank Of Kuwait 931.00 -0.85 2,620,635 Sahara Hospitality 3.09 0.00 - Specialities Group Holding C 70.90 1.29 76,010 Al Ahlia Insurance Co Saoc 0.36 0.00 - Commercial Bank Of Kuwait 509.00 -0.59 7,950 Renaissance Services Saog 0.52 0.00 - Abyaar Real Eastate Developm 11.90 -6.30 3,779,912 Ahli Bank 0.12 0.00 - Kuwait International Bank 273.00 -1.80 5,639,437 Raysut Cement Co 0.30 -2.58 85,851 Dar Al Thuraya Real Estate C 179.00 0.00 - Acwa Power Barka Saog 0.66 0.00 - Gulf Bank 300.00 -2.28 18,138,251 Phoenix Power Co Saoc 0.08 0.00 120 Kgl Logistics Company Kscc 41.80 -0.95 247,022 Abrasives Manufacturing Co S 0.05 0.00 - Al-Massaleh Real Estate Co 35.90 0.00 - Packaging Co Ltd 2.21 0.00 - Combined Group Contracting 226.00 0.00 84,368 A’saff a Foods Saog 0.60 0.00 - Al Arabiya Real Estate Co 31.40 0.00 71,001 Ooredoo 0.45 -0.44 82,215 Jiyad Holding Co Ksc 56.80 0.53 237,879 0Man Oil Marketing Co-Pref 0.25 0.00 - Kuwait Remal Real Estate Co 33.90 2.73 169,400 Ominvest 0.31 0.00 403,000 Warba Capital Holding Co 93.80 0.00 - #N/A Invalid Security 0.00 0.00 - Alkout Industrial Projects C 840.00 0.00 - Oman United Insurance Co 0.25 0.00 - Gulf Investment House Ksc 59.20 -0.34 67,501 #N/A Invalid Security 0.00 0.00 - Oman Telecommunications Co 0.52 -1.89 425,203 A’ayan Real Estate Co Sak 63.70 0.16 358,379 Boubyan Bank K.S.C 578.00 -0.34 1,191,987 Oman Refreshment Co 1.66 0.00 - Investors Holding Group Co.K 10.20 0.99 4,488,400 Ahli United Bank B.S.C 246.00 -2.77 6,512,037 Oman Qatar Insurance Co 0.09 0.00 - Al-Mazaya Holding Co 57.50 -2.38 1,322,583 Osos Holding Group Co 101.00 0.00 97,654 LATEST MARKET CLOSING FIGURES

Funds fl ocking to dollar on bets Sudden yuan weakness spells markets underpricing trade divide danger for exporters

Bloomberg The uncertainty has shown up beyond US Singapore in the JPMorgan Global FX Vola- tility Index, which rose as much as 16% last week from its close on Bloomberg it would create huge ripples arkets are underestimat- May 3, before two tweets from US London via the exchange rate, via ing the risks of a pro- President Donald Trump changed exporters around the global Mlonged US-China trade the narrative on the talks from economy including Europe,” war, which would drive dollar optimism for a deal to an escala- ittle-noticed amid said Jane Foley, the head of strength against the currencies of tion of tariff s imposed. the storm of words in currency strategy at Ra- developing nations, according to “We are increasingly sceptical Lthe US-China trade bobank International. While some money managers. that any meaningful agreement dispute, the euro has rallied recent German data have Uncertainty over how the or even progress will be made in the most in almost a year been encouraging, “the pos- dispute would be resolved in the near future,” said Todd Schu- against the Chinese yuan, sibility of a weaker renminbi the one-month deadline set by bert, head of fi xed-income re- hampering the region’s be- is a threat to Europe.” Washington will reinvigorate a search at Bank of Singapore Ltd, leaguered exporters. The yuan has weakened hunt for haven assets in a world which reduced its investments in The seven-day surge in to its lowest level in al- already hampered by slowing emerging-market credit as ten- the European currency is most three months against growth. An easy bet will be to sions rose. “Bonds have not really the most dramatic since a peer currencies after the short the expected losers: risk- priced-in the complete collapse similar period through early US raised tariff s on Chi- sensitive currencies from Asia to of US-Sino trade talks.” July 2018, dimming the ap- nese goods and the two South America, they say. Not everyone is convinced the peal of the region’s goods sides failed to reach a deal “To be honest, I thought the dollar is a sure bet. for Chinese importers. during talks in Washing- dollar would be rising at a much The greenback is in the proc- While the euro area isn’t ton. The Bloomberg rep- faster pace than this - markets ess of peaking as the Federal Re- the only economy caught lica of the CFETS RMB In- were pricing in a Goldilocks en- serve becomes more balanced in in crossfi re of the US-China dex, which tracks the yuan vironment and they were clearly its monetary policy, according to trade dispute – the yen’s against a basket of 24 trad- wrong,” said Stephen Miller, an Manpreet Gill, head of fi xed in- gains versus the yuan have ing partners’ currencies, has adviser at asset manager GSFM come, currency and commodities been even more pronounced dropped for nine straight and a former head of fi xed income strategy at Standard Chartered – it’s nonetheless a blow for sessions. at BlackRock Inc’s Australian Bank in Singapore. the likes of carmakers, this Trade worries have business. “Right now I’d be long But count among the dollar month’s worst-performing weighed on European US dollar versus EM currencies, bulls Mary Nicola, a Singapore- group on the Stoxx Europe stocks. Luxury goods fi rms the likes of Argentina and Tur- based G-10 FX and Asian fi xed- 600 Index. including LVMH and tech- key.” income strategist at Eastspring And it’s a knock the euro nology companies such as There’s a 60% chance that Investments, which oversees area could do without. Eco- STMicroelectronics NV China and US won’t reach a deal A businessman looks at a screen displaying a photo of US 100 dollar banknotes in Tokyo (file). Markets are $193bn. The asset management nomic data are just start- have the most negative cor- in the coming weeks, according underestimating the risks of a prolonged US-China trade war, which would drive dollar strength against arm of Prudential Plc is taking a ing to hint that the bloc’s relation with the euro-yuan to analysts at Australia and New the currencies of developing nations, according to some money managers. long dollar position versus the sharp deceleration is end- rate over the past 30 days, Zealand Banking Group Ltd, af- euro and other G-10 currencies, ing. Doubt remains, though, according to data compiled ter last week’s talks laid bare di- dex has strengthened in the past piah and Korean won slipping at also gone long rates in general and partly on yield diff erentials that over the strength of Ger- by Bloomberg. visions including the removal of month - with the greenback rising least 1% in the past week. it’s worked well for us.” are in favour of the US. man manufacturing and the Carmakers, facing an- existing tariff s and a breakdown against all Group-of-10 curren- “I’d be long USD against a Off shore yuan fell past 6.9 “We’ve always had a high con- fallout from Brexit. China is other set of challenges as in trust. While both nations plan cies except for the Japanese yen, basket of EM Asia currencies as against the dollar, erasing all its viction in US dollars,” she said on Germany’s third most im- the US prepares to impose to continue negotiations, traders which is a fellow haven asset. It I think this trade war will con- gains this year, after the People’s Bloomberg Television. “Now it’s portant trading partner, ac- levies on EU auto imports, are waiting for Beijing’s retalia- has also climbed against a basket tinue,” says Raymond Lee, money Daily, the fl agship newspaper of just a little bit harder to be long cording to data compiled by have dropped. Daimler AG tion measures after Washington of developing-nation currencies, manager at Kapstream in Sydney. China’s Communist Party, said emerging-market foreign ex- Bloomberg. is down 10% in the last slapped more duties. with bellwether or trade-sensi- “You can’t solve a lot of these yesterday that unreasonable US de- change because they’re going to “If the renminbi were to month, while Peugeot SA The Bloomberg Dollar Spot In- tive forex such as Indonesia’s ru- trade issues overnight – we’ve mands severely disrupted the talks. be dealing with a lot of volatility.” fall by a substantial margin has declined 11.5%. Gulf Times 6 Tuesday, May 14, 2019 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 25,365.53 -576.84 Apple Inc 186.50 -5.42 7,296,067 S&P 500 Index 2,812.57 -68.83 American Express Co 116.22 -1.89 263,136 Nasdaq Composite Index 7,671.72 -245.22 Boeing Co/The 340.95 -3.87 440,524 S&P/Tsx Composite Index 16,137.21 -160.34 Caterpillar Inc 125.14 -4.72 564,746 Mexico Bolsa Index 42,725.52 -656.82 Cisco Systems Inc 51.28 -3.90 3,344,246 Brazil Bovespa Stock Idx 91,888.06 -2,369.50 Chevron Corp 120.52 -1.21 662,964 Ftse 100 Index 7,163.68 -39.61 Walt Disney Co/The 131.01 -2.26 692,604 Cac 40 Index 5,262.57 -64.87 Dowdupont Inc 30.42 -3.37 1,101,755 Dax Index 11,876.65 -183.18 Goldman Sachs Group Inc 195.03 -3.47 291,749 Ibex 35 Tr 9,046.80 -70.70 Home Depot Inc 190.07 -2.32 228,501 Nikkei 225 21,191.28 -153.64 Intl Business Machines Corp 132.17 -2.33 285,382 Japan Topix 1,541.14 -8.28 Intel Corp 44.97 -2.66 4,503,652 Hang Seng Index 28,550.24 +239.17 Johnson & Johnson 137.71 -0.96 329,355 All Ordinaries Indx 6,381.30 -11.83 Jpmorgan Chase & Co 109.86 -2.36 1,157,668 Nzx All Index 1,730.49 +4.92 Coca-Cola Co/The 47.98 -0.45 655,120 Bse Sensex 30 Index 37,090.82 -372.17 Mcdonald’s Corp 198.57 -0.71 191,319 Nse S&P Cnx Nifty Index 11,148.20 -130.70 3M Co 173.26 -1.48 283,213 Straits Times Index 3,234.28 -39.22 Merck & Co. Inc. 77.26 -1.19 1,036,159 Karachi All Share Index 25,041.07 -652.00 Microsoft Corp 123.74 -2.67 3,726,316 Jakarta Composite Index 6,135.40 -73.72 Nike Inc -Cl B 82.52 -1.70 672,167 Pfizer Inc 40.44 -0.69 1,773,306 Procter & Gamble Co/The 106.44 0.41 864,305 Travelers Cos Inc/The 143.06 -0.63 74,991 TOKYO Unitedhealth Group Inc 238.79 -0.75 453,467 United Technologies Corp 131.74 -3.96 206,720 Company Name Lt Price % Chg Volume Visa Inc-Class A Shares 157.47 -2.02 498,718 Nidec Corp 14,880.00 -0.13 582,000 Verizon Communications Inc 56.97 0.11 1,004,032 Isuzu Motors Ltd 1,438.50 -0.31 2,636,700 Walgreens Boots Alliance Inc 52.39 -1.93 720,971 Unicharm Corp 3,480.00 -0.63 1,569,800 Walmart Inc 99.88 -1.99 553,781 Nomura Holdings Inc 375.60 -1.70 13,134,500 Exxon Mobil Corp 75.69 -1.14 1,254,479 Daiichi Sankyo Co Ltd 5,484.00 -0.69 1,294,900 Subaru Corp 2,565.00 4.57 4,326,800 Sumitomo Realty & Developmen 3,976.00 -0.08 979,100 FTSE 100 Ntt Docomo Inc 2,438.00 1.06 4,767,300 Sumitomo Metal Mining Co Ltd 2,889.50 -2.99 1,585,000 Company Name Lt Price % Chg Volume Orix Corp 1,534.50 -3.19 6,618,200 Asahi Group Holdings Ltd 4,639.00 0.24 1,000,500 Anglo American Plc 1,864.00 -1.52 2,964,974 Keyence Corp 65,860.00 -1.24 276,600 Associated British Foods Plc 2,488.00 -0.88 378,197 Mizuho Financial Group Inc 165.60 -1.02 76,394,900 Admiral Group Plc 2,028.00 -1.41 1,405,644 Sumitomo Mitsui Trust Holdin 3,731.00 -0.43 771,700 Ashtead Group Plc 1,984.00 -2.17 996,847 A European Union flag flutters outside the Frankfurt Stock Exchange. The DAX 30 ended 1.5% down at 11,876.65 points Japan Tobacco Inc 2,481.50 0.47 4,679,200 Antofagasta Plc 803.20 -3.88 3,115,391 yesterday. Sumitomo Electric Industries 1,371.00 -1.15 3,285,800 Auto Trader Group Plc 569.00 -0.56 2,257,073 Daiwa Securities Group Inc 490.60 -1.78 3,950,500 Aviva Plc 407.60 -1.81 6,293,472 Softbank Group Corp 10,570.00 -3.25 9,535,200 Astrazeneca Plc 5,676.00 -0.28 1,482,484 Panasonic Corp 892.00 -2.59 10,764,000 Bae Systems Plc 461.10 -1.75 9,446,410 Fujitsu Ltd 7,258.00 -0.43 872,100 Barclays Plc 155.10 -1.54 27,217,247 Central Japan Railway Co 22,200.00 0.27 298,900 British American Tobacco Plc 2,865.00 0.92 2,414,070 Nitori Holdings Co Ltd 12,950.00 0.31 262,700 Barratt Developments Plc 597.60 -0.70 3,210,908 Ajinomoto Co Inc 1,923.00 3.08 3,508,100 Bhp Group Plc 1,713.20 -1.71 4,133,311 World equities sink as Daikin Industries Ltd 13,520.00 -0.77 945,900 Berkeley Group Holdings/The 3,662.00 -1.29 268,474 Mitsui Fudosan Co Ltd 2,501.50 -0.54 3,452,000 British Land Co Plc 563.60 -1.12 3,435,447 Ono Pharmaceutical Co Ltd 1,893.00 -3.27 2,473,400 Bunzl Plc 2,100.00 -1.18 1,354,209 Toray Industries Inc 698.10 -0.53 4,757,500 Bp Plc 526.30 0.40 35,616,828 Bridgestone Corp 4,197.00 -0.02 2,370,600 Burberry Group Plc 1,864.00 -2.99 921,056 Sony Corp 5,371.00 -0.68 5,092,900 US, China exchange Bt Group Plc 205.30 -1.68 28,023,660 Astellas Pharma Inc 1,451.50 0.48 5,303,800 Coca-Cola Hbc Ag-Di 2,710.00 -0.81 577,068 Hoya Corp 7,722.00 -0.03 1,266,100 Carnival Plc 3,911.00 -0.96 508,421 Nippon Steel Corp 1,841.00 -1.42 2,867,900 Centrica Plc 95.40 3.02 53,343,207 Suzuki Motor Corp 5,065.00 5.45 3,549,900 Compass Group Plc 1,730.50 1.38 3,715,692 Nippon Telegraph & Telephone 4,775.00 0.63 3,612,200 Croda International Plc 5,010.00 -1.18 289,498 Jxtg Holdings Inc 536.00 2.45 31,559,500 trade war salvos Crh Plc 2,430.00 -1.02 1,528,834 Murata Manufacturing Co Ltd 4,975.00 -1.09 3,405,900 Dcc Plc 6,486.00 -1.58 181,310 Kansai Electric Power Co Inc 1,280.00 1.15 2,769,700 Diageo Plc 3,254.00 0.26 2,740,382 will need to improve fi rst and fore- ernment bonds, have been doing well Denso Corp 4,414.00 -0.34 1,262,600 AFP Direct Line Insurance Group 311.00 -0.67 3,010,338 most,” he said. from the trade turmoil as investors Sompo Holdings Inc 4,259.00 0.61 867,300 London Evraz Plc 556.40 -5.12 5,010,874 ditch risky investments like stocks in a Daiwa House Industry Co Ltd 3,020.00 0.47 2,403,200 Wall Street’s Dow index, which Experian Plc 2,174.00 -0.41 998,731 Dai-Ichi Life Holdings Inc 1,528.00 -0.36 2,971,300 had dropped more than 400 points at fl ight to safety. Easyjet Plc 1,016.50 -1.69 1,382,172 Mazda Motor Corp 1,246.00 -1.35 3,564,900 orld equities came under the opening bell, was more than 600 Yesterday, some analysts were won- Ferguson Plc 5,436.00 -1.41 618,608 Komatsu Ltd 2,374.00 -1.92 5,860,500 dering whether cryptocurrency bitcoin Fresnillo Plc 726.00 0.17 967,012 intense pressure yesterday points down two hours later, a fall of West Japan Railway Co 8,293.00 0.23 433,100 should be added to the list after ris- Glencore Plc 271.70 -3.26 36,638,573 Wfrom new eruptions in the nearly 2.5%, while the tech-heavy Kao Corp 8,449.00 0.23 1,029,500 Glaxosmithkline Plc 1,512.40 0.69 5,556,223 US-China trade war, while oil rallied Nasdaq fell over 3%. ing by $1,000 over the weekend to a Mitsui & Co Ltd 1,650.50 -0.39 3,608,000 Gvc Holdings Plc 575.80 -3.58 2,138,964 on simmering tensions in the crude- Eurozone stock markets were over nine-month high, which saw it breach Daito Trust Construct Co Ltd 12,400.00 -3.20 972,000 Hikma Pharmaceuticals Plc 1,744.50 -0.34 736,990 Otsuka Holdings Co Ltd 3,869.00 -0.23 1,019,700 rich Middle East. one% lower at the close, with London $7,000. Hargreaves Lansdown Plc 2,252.00 -2.00 615,469 Oriental Land Co Ltd 12,460.00 0.48 367,700 Equity investors began the day in doing a little better. Calling the surge “a mystery to in- Halma Plc 1,736.50 -1.11 1,354,320 Sekisui House Ltd 1,740.00 -0.57 2,517,300 underwhelming fashion in Asia, as the London’s FTSE 100 closed 0.6% vestors”, FXTM research analyst Luk- Hsbc Holdings Plc 650.00 -0.31 12,171,519 Secom Co Ltd 9,358.00 0.45 410,100 Hiscox Ltd 1,553.00 -0.77 368,621 lack of a US-China trade deal jarred down at 7,163.68 points, Frankfurt’s man Otunuga observed “the coinci- Tokio Marine Holdings Inc 5,431.00 -0.53 1,130,200 Intl Consolidated Airline-Di 504.00 1.08 6,395,664 markets. DAX 30 ended 1.5% down at 11,876.65 dental view” that bitcoin’s price rose Aeon Co Ltd 1,959.50 -0.18 2,074,000 Intercontinental Hotels Grou 4,828.00 -0.45 439,724 Negative sentiment spilled over points and Paris’ CAC 40 fi nished 1.2% at the same time as US-China trade Asahi Kasei Corp 1,151.00 3.46 4,704,500 3I Group Plc 1,032.50 -0.96 1,315,284 into Europe, and then to US mar- down at 5,262.57 points, while the tensions. Kirin Holdings Co Ltd 2,227.00 -1.20 2,569,600 Imperial Brands Plc 2,171.50 0.32 2,422,494 Marubeni Corp 709.60 -0.60 6,379,100 kets where stock valuations slumped EURO STOXX 50 lost 1.2% at 3,320.74 “While it’s far too premature to sug- Informa Plc 754.40 0.59 3,616,007 Mitsubishi Ufj Financial Gro 512.60 -2.08 61,985,100 massively. points. gest that bitcoin has restored itself as Intertek Group Plc 4,989.00 -2.63 293,010 Mitsubishi Chemical Holdings 714.90 -2.88 9,499,100 “US stocks are falling decisively in Markets remain on red alert over a a potential safe-haven asset for in- Itv Plc 111.80 -6.33 24,022,195 Fanuc Corp 19,045.00 -0.55 922,500 Johnson Matthey Plc 3,065.00 -2.98 252,213 early action, amid exacerbated US- trade war between the two big super- vestors, the idea will attempt to pick Fast Retailing Co Ltd 64,410.00 -1.51 741,900 Kingfisher Plc 239.90 -1.28 6,464,020 China trade tensions as last week’s powers that observers warn could shat- up further momentum if the crypto- Ms&Ad Insurance Group Holdin 3,321.00 -0.24 793,500 Land Securities Group Plc 892.20 -1.22 1,701,195 negotiations that ended without a ter global economic growth — and also currency continues to explode higher Kubota Corp 1,658.00 6.93 6,428,600 Legal & General Group Plc 267.40 -1.33 11,573,627 amid the risk-off conditions,” Otunuga Seven & I Holdings Co Ltd 3,702.00 0.11 1,762,400 deal and Friday’s increased tariff s on hurt demand for commodities like oil. Lloyds Banking Group Plc 59.79 -2.06 132,784,369 Inpex Corp 1,003.50 0.35 6,372,500 Chinese goods by the US were met “It’s Groundhog Day yet again, with said. London Stock Exchange Group 5,050.00 -0.43 412,134 Resona Holdings Inc 458.00 2.55 21,645,200 with China’s retaliatory measures an- yet another day of US-China focused Oil prices charged higher yesterday Micro Focus International 1,746.60 -2.15 887,698 Fujifilm Holdings Corp 5,188.00 -1.18 1,077,700 as simmering tensions in the crude- Marks & Spencer Group Plc 270.70 -0.18 5,366,062 nounced today,” analysts at the Charles selling taking hold,” said senior market Yamato Holdings Co Ltd 2,332.50 1.24 2,076,800 Mondi Plc 1,643.50 -0.84 1,260,894 Schwab brokerage said. analyst Joshua Mahony at trading fi rm rich Middle East eclipsed worries over Chubu Electric Power Co Inc 1,576.50 0.48 1,390,700 Melrose Industries Plc 176.00 -3.46 14,883,129 Negotiations in Washington ended IG. the global demand outlook. Mitsubishi Estate Co Ltd 1,854.00 -0.80 3,527,800 Wm Morrison Supermarkets 211.70 -1.72 8,334,221 on Friday without agreement and a White House economic advisor Lar- Saudi Arabia said yesterday that two Mitsubishi Heavy Industries 4,608.00 -0.30 1,572,900 National Grid Plc 849.60 1.69 4,953,605 Sysmex Corp 7,310.00 1.57 1,181,500 massive US tariff hike on Chinese im- ry Kudlow said Trump and China’s Xi of its oil tankers were damaged in mys- Nmc Health Plc 2,550.00 -3.34 405,766 Shiseido Co Ltd 8,222.00 -2.47 2,422,500 ports kicked in. Jinping could meet next month on the terious “sabotage attacks” in the Gulf, Next Plc 5,604.00 -0.39 247,439 Shionogi & Co Ltd 6,468.00 -2.75 1,025,800 Then yesterday, President Donald sidelines of the G20 summit to hash as tensions soared in a region already Ocado Group Plc 1,319.50 -1.46 1,632,442 Terumo Corp 2,970.00 -4.04 3,264,500 Paddy Power Betfair Plc 5,884.00 -1.57 139,034 Trump told China via Twitter not to out their diff erences on trade — but no shaken by a standoff between the Unit- Tokyo Gas Co Ltd 2,706.00 0.78 1,548,900 Prudential Plc 1,590.50 -1.33 4,108,264 retaliate, a warning ignored by Beijing new talks are yet scheduled. ed States and Iran. Tokyo Electron Ltd 16,270.00 -2.60 1,308,700 Persimmon Plc 2,060.00 -1.67 748,345 where the government announced tar- Trump had accused Beijing of reneg- Riyadh, Tehran’s regional arch-ri- East Japan Railway Co 9,865.00 -0.39 511,500 Pearson Plc 797.40 -0.62 2,065,634 iff s on $60bn worth of US goods from ing on its commitments and ordered val, condemned “the acts of sabotage Itochu Corp 1,975.00 1.02 6,625,500 Reckitt Benckiser Group Plc 6,161.00 0.26 765,441 Ana Holdings Inc 3,681.00 -0.57 738,900 June 1. new punitive duties — which took ef- which targeted commercial and civil- Royal Bank Of Scotland Group 226.30 -2.83 11,798,003 Mitsubishi Electric Corp 1,449.50 -2.32 4,533,800 “Judging by Trump’s tweets alone, fect on Friday — on $200bn worth of ian vessels near the territorial waters Royal Dutch Shell Plc-A Shs 2,447.50 0.87 6,586,034 Sumitomo Mitsui Financial Gr 3,842.00 -0.98 4,432,300 the two nations are apparently no- Chinese imports, raising them to 25% of the United Arab Emirates”, a foreign Royal Dutch Shell Plc-B Shs 2,458.00 1.03 3,883,102 Relx Plc 1,740.00 -0.11 2,787,310 where near signing a trade deal,” said from 10%. ministry source said. Rio Tinto Plc 4,368.00 -1.00 2,463,028 Fawas Razaqzada, a market analyst at He then ordered a tariff hike on al- The global oil market won support Rightmove Plc 548.70 -1.49 1,015,575 SENSEX Forex.com. most all remaining imports from Chi- “on dealer concerns about supply dis- Rolls-Royce Holdings Plc 897.80 -2.26 5,237,332 “And for the markets, this is all that na, which are worth about $300bn, ruptions in the Middle East and this Rsa Insurance Group Plc 551.20 -0.54 2,010,033 Company Name Lt Price % Chg Volume matters right now. according to US Trade Representative despite market worries over global Rentokil Initial Plc 381.60 -0.24 3,746,783 Adani Ports And Special Econ 364.75 -2.09 1,520,562 Thus, for sentiment to improve Robert Lighthizer. growth prospects”, noted Oanda ana- Sainsbury (J) Plc 205.50 -2.93 11,529,084 Asian Paints Ltd 1,332.50 -0.64 862,130 Some assets, like gold and some gov- lyst Dean Popplewell. Schroders Plc 3,007.00 -2.24 296,570 again, Trump’s tone towards China Axis Bank Ltd 732.10 -0.40 5,891,071 Sage Group Plc/The 704.20 -1.51 1,976,258 Bajaj Finance Ltd 2,931.85 0.31 1,356,229 Segro Plc 687.20 0.17 1,820,215 Bharti Airtel Ltd 318.65 -1.68 6,498,273 Smurfit Kappa Group Plc 2,166.00 -3.13 261,929 Bharti Infratel Ltd 265.45 1.22 3,369,566 HONG KONG HONG KONG Standard Life Aberdeen Plc 258.00 -3.01 7,396,101 Bajaj Auto Ltd 2,972.75 0.22 233,316 Ds Smith Plc 332.80 -2.00 3,680,356 Bajaj Finserv Ltd 7,347.35 -0.49 111,869 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Smiths Group Plc 1,467.50 -2.07 568,509 Bharat Petroleum Corp Ltd 355.10 -2.16 3,810,145 Scottish Mortgage Inv Tr Plc 505.00 -1.75 2,262,444 Ck Hutchison Holdings Ltd 0.25 Cipla Ltd 546.70 -1.59 2,027,570 79.75 5,688,165 Hong Kong & China Gas 18.72 0.65 12,049,010 Smith & Nephew Plc 1,612.00 0.00 1,833,501 Hang Lung Properties Ltd -0.12 Coal India Ltd 242.10 0.35 3,539,800 17.08 12,085,550 Bank Of Communications Co-H 6.17 -0.48 33,827,386 Spirax-Sarco Engineering Plc 8,060.00 -0.80 263,881 Ck Infrastructure Holdings L 0.32 Dr. Reddy’s Laboratories 2,802.75 -2.56 659,200 62.70 1,641,832 China Petroleum & Chemical-H 5.74 -0.35 158,803,466 Sse Plc 1,115.00 0.22 2,737,806 Hengan Intl Group Co Ltd -3.08 Eicher Motors Ltd 18,751.75 -7.87 342,973 66.10 4,630,510 Hong Kong Exchanges & Clear 252.00 1.61 8,571,879 Standard Chartered Plc 668.20 -1.71 7,325,089 China Shenhua Energy Co-H -0.94 Gail India Ltd 332.05 -2.78 1,673,740 16.90 18,017,008 Bank Of China Ltd-H 3.51 0.00 507,821,369 St James’s Place Plc 1,085.00 -1.45 2,302,683 Cspc Pharmaceutical Group Lt 2.37 Grasim Industries Ltd 837.95 -2.29 652,682 13.84 40,242,559 Hsbc Holdings Plc 66.90 0.68 20,761,009 Severn Trent Plc 1,982.50 1.07 733,472 Hang Seng Bank Ltd 0.50 Hcl Technologies Ltd 1,083.65 -0.28 1,684,031 203.00 1,266,939 Power Assets Holdings Ltd 55.75 1.00 5,195,205 Tesco Plc 237.80 -1.78 18,528,890 China Resources Land Ltd 2.32 Housing Development Finance 1,952.90 1.10 4,509,527 33.05 7,139,334 Mtr Corp 46.20 0.22 2,859,019 Tui Ag-Di 781.00 -5.65 3,156,243 Ck Asset Holdings Ltd 0.57 Hdfc Bank Limited 2,287.20 -0.40 2,767,908 62.05 8,692,526 China Overseas Land & Invest 28.90 2.48 14,857,698 Taylor Wimpey Plc 175.45 -0.99 7,487,918 Sino Biopharmaceutical 4.98 Hero Motocorp Ltd 2,510.75 0.14 313,902 7.38 58,272,532 Tencent Holdings Ltd 382.00 1.70 25,923,621 Unilever Plc 4,649.50 0.87 1,631,261 Henderson Land Development 1.60 Hindalco Industries Ltd 192.20 -1.84 6,979,614 47.55 5,653,114 China Unicom Hong Kong Ltd 8.84 0.11 18,662,473 United Utilities Group Plc 803.60 0.80 2,068,422 Aia Group Ltd 0.39 Hindustan Petroleum Corp 262.75 -3.45 5,702,048 77.95 43,964,709 Link Reit 93.25 0.76 4,749,016 Vodafone Group Plc 131.78 -5.19 163,142,455 Ind & Comm Bk Of China-H 0.36 Hindustan Unilever Ltd 1,702.00 0.86 1,160,287 5.52 290,991,496 Sino Land Co 13.02 0.15 7,631,177 John Wood Group Plc 444.60 -0.60 2,279,069 Want Want China Holdings Ltd -0.96 Icici Bank Ltd 376.30 -2.29 13,828,080 6.17 19,540,992 China Resources Power Holdin 10.64 0.57 8,933,319 Wpp Plc 939.80 -2.37 2,343,724 Sun Hung Kai Properties 0.90 Indiabulls Housing Finance L 659.05 -5.59 6,519,138 134.00 4,514,310 Petrochina Co Ltd-H 4.60 -0.86 115,164,726 Whitbread Plc 4,493.00 -0.60 480,181 New World Development 0.32 Indusind Bank Ltd 1,393.30 -3.24 2,608,583 12.56 10,854,272 Cnooc Ltd 13.38 0.30 61,378,602 Geely Automobile Holdings Lt 2.07 Infosys Ltd 719.70 0.40 6,808,993 13.78 94,555,431 China Construction Bank-H 6.47 0.47 378,670,066 Swire Pacific Ltd - Cl A 0.36 Indian Oil Corp Ltd 142.60 -3.39 9,712,869 96.60 808,105 China Mobile Ltd 72.10 -0.89 24,708,957 Sands China Ltd 2.60 Itc Ltd 289.30 -2.84 35,880,558 41.45 12,510,017 TOKYO Wharf Real Estate Investment 0.78 Jsw Steel Ltd 276.90 -3.64 4,291,656 58.25 3,461,438 Clp Holdings Ltd 0.17 Kotak Mahindra Bank Ltd 1,389.35 -0.63 1,654,964 87.55 3,608,840 Country Garden Holdings Co 2.05 Company Name Lt Price % Chg Volume Larsen & Toubro Ltd 1,317.65 -2.79 3,422,913 11.92 39,187,346 Aac Technologies Holdings In 2.18 Mahindra & Mahindra Ltd 617.60 -1.77 1,463,136 46.90 12,900,443 GCC INDICES Japan Airlines Co Ltd 3,603.00 -0.11 1,574,800 Shenzhou International Group 3.06 Maruti Suzuki India Ltd 6,543.75 -1.32 555,672 102.80 2,605,940 Indices Lt Price Change Recruit Holdings Co Ltd 3,276.00 -0.30 3,078,000 Ping An Insurance Group Co-H 2.48 Ntpc Ltd 123.55 -2.72 11,507,204 88.85 55,739,162 Softbank Corp 1,438.00 0.98 19,897,500 China Mengniu Dairy Co 29.65 2.95 15,836,054 Oil & Natural Gas Corp Ltd 164.10 -1.32 7,792,358 Doha Securities Market 9,740.20 -188.02 Kyocera Corp 6,895.00 -0.06 923,800 Sunny Optical Tech 5.34 Power Grid Corp Of India Ltd 182.65 -1.56 3,096,246 90.70 10,779,194 Nissan Motor Co Ltd 865.70 0.84 13,601,200 Boc Hong Kong Holdings Ltd 32.95 0.76 32,751,270 Reliance Industries Ltd 1,232.05 -1.53 8,047,801 Kuwait Stocks Exchange 4,770.46 -8.29 T&D Holdings Inc 1,167.00 -0.26 2,102,400 China Life Insurance Co-H 1.24 State Bank Of India 306.90 -0.37 40,101,505 19.56 63,472,776 Toyota Motor Corp 6,545.00 0.12 3,862,100 Citic Ltd 10.92 -0.73 17,112,300 Sun Pharmaceutical Indus 398.10 -9.06 24,079,258 Oman Stock Market 3,840.18 -25.33 Kddi Corp 2,616.50 2.17 5,727,500 Galaxy Entertainment Group L 1.68 Tata Steel Ltd 472.30 -2.98 15,956,920 54.35 12,707,409 Nitto Denko Corp 5,219.00 -1.58 562,900 Wh Group Ltd 7.70 0.92 176,530,106 Hitachi Ltd 3,706.00 0.62 3,722,300 Tata Consultancy Svcs Ltd 2,128.75 -0.33 1,701,744 Takeda Pharmaceutical Co Ltd 4,318.00 0.63 5,619,200 Tech Mahindra Ltd 817.30 1.10 3,719,275 Jfe Holdings Inc 1,757.50 -1.07 2,522,600 Titan Co Ltd 1,144.70 1.11 2,695,155 Sumitomo Corp 1,567.00 -0.85 3,669,900 Tata Motors Ltd 180.75 -2.77 15,373,536 Canon Inc 3,044.00 -0.23 4,291,000 Upl Ltd 953.15 -0.61 860,014 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The Eisai Co Ltd 6,377.00 0.22 1,229,400 Ultratech Cement Ltd 4,338.45 -2.16 408,316 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Nintendo Co Ltd 36,990.00 -0.03 1,144,500 Vedanta Ltd 154.20 -1.12 7,263,166 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Shin-Etsu Chemical Co Ltd 9,493.00 0.25 1,212,700 Wipro Ltd 289.10 -0.43 4,281,950 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Mitsubishi Corp 2,855.50 0.40 8,373,300 Yes Bank Ltd 154.70 -5.58 60,884,255 this data.” Smc Corp 39,680.00 -3.85 317,200 Zee Entertainment Enterprise 342.05 -7.85 12,773,904 Gulf Times 10 Tuesday, May 14, 2019 BUSINESS Hedge funds cautious on oil as economic outlook darkens

By John Kemp major contracts linked to petroleum and larger buyers of European gasoil complex to 147mn barrels up from a selling crude and fuels despite in the second half of April and the US. London prices in the week to May 7. (+16mn). low of just 119mn on April 23. intensifying US sanctions on oil exports Treasury yield curve moving back Portfolio managers have now sold a Funds have sold after their position Fund managers have raised short from Iran and Venezuela and signals towards inversion. total of 42mn barrels in the last two became very stretched late last positions in NYMEX WTI to 39 mn Saudi Arabia is in no hurry to replace Recent fund selling likely reflects Hedge fund managers have started to weeks, after buying 609mn over the month, with bullish long positions barrels up from a recent low of 24mn lost barrels. greater concerns about prospects for turn more bearish on oil as concerns previous 15 weeks since January outnumbering bearish short ones by a on April 23, the largest imbalance since But storm clouds are gathering over an economic slowdown, which would about a slowing global economy and 8, according to position records ratio of nearly 9:1 on April 23. early October. the global economy, with slowdowns hit oil consumption growth and lead an over-extended price rally outweigh published by regulators and Large concentrations of fund positions The rise in NYMEX WTI short positions, reported in freight movements and to lower prices even if Saudi Arabia fears about sanctions and supply exchanges. have generally preceded a reversal in which is the most significant since the manufacturing orders, while tariff s continues to restrict exports. disruptions. Last week, funds sold NYMEX and ICE the price trend, so some managers may start of 2019, could indicate the start of between the United States and China Hedge funds and other money WTI (-32mn barrels), US gasoline (-8mn) have anticipated a future fall in prices. a new short-selling cycle, the first since are rising. Financial markets show  John Kemp is a Reuters market managers were net sellers of 25mn and US heating oil (-2mn) though they Hedge funds have boosted their late August 2018. increasing signs of stress, with equity analyst. The views expressed are his barrels of futures and options in the six were small buyers of Brent (+2mn) short positions across the petroleum Hedge fund managers have been prices retreating from recent highs set own.

Indian shares log Euronext gets green light longest losing streak to buy Oslo Bors by June in 8 years Bloomberg London

IANS Mumbai uronext NV won the permission of the Norwegian government Eto buy the Oslo stock exchange ndia’s Sensex and Nifty fell without imposing an ownership thresh- for the ninth consecutive old on the Franco-Dutch company. Isession yesterday, logging The decision gives Euronext victory their longest losing streak in over Nasdaq Inc in a bitter fi ve-month more than eight years. takeover battle that has driven the price According to an analyst, the of the bourse up to $775mn. fall is predominantly on ac- Euronext shareholders will vote on count of political uncertainty the bid on May 16 and the company in the country, weak global aims to complete the purchase of a 53% cues, high crude oil prices and controlling stake in Oslo Bors VPS by unimpressive fourth quarter the end of June, it said in a statement. results. Euronext would then consolidate As the country gears up for Oslo Bors into its fi nancial accounts, the seventh and the final phase chief executive offi cer Stephane Bou- of elections, investors are get- jnah said in an interview. ting increasingly nervous by “The Norwegian authorities have de- the day. “While we see the NDA cided not to frustrate this transaction, coming back to power, the in- which was solicited by a majority of vestors fear market may turn Norwegian shareholders,” Boujnah said. topsy turvy if anything short “Hard facts prevail.” of that happens. Hence we see Norway’s Finance Ministry con- a very dismal buying interest,” fi rmed in a separate statement that it said Kotak Securities head of had approved Euronext as a suitable Fundamental Research, Rusmik owner of Oslo Bors. Oza. Crucially, the government decided The Foreign Institutional In- not to impose a two-thirds ownership vestors (FII), who have been a requirement, which had been pushed by key support last month driving Nasdaq. Sensex and Nifty to life-time Such a threshold would have stopped highs, have turned sellers this Euronext from completing the takeover month. FIIs have pulled out a because more than a third of sharehold- little over Rs50,000mn since ers had accepted Nasdaq’s rival off er. May 1. Euronext obtained the backing of a The FII exodus has caused majority of Oslo Bors’s shareholders the equity as well the curren- over the Christmas holiday. cy market to fall. The Sensex It won an auction organised by a and Nifty have declined nearly group of shareholders seeking to sell 5% during the past 9 sessions, their stakes in the owner of the Norwe- A visitor enters the Euronext stock exchange in La Defense business district of Paris. Euronext won the permission of the Norwegian government to buy the Oslo stock including the one yesterday gian stock exchange. exchange without imposing an ownership threshold on the Franco-Dutch company. marred by heavy volatility. Euronext then bought enough shares Global markets are nervous to take its total support to more than holders – Norway’s biggest bank, DNB bank doesn’t agree with but accepts the the bid expires,” he said. “The board of sible solution further for the group, the about the fresh US-China spat 50%.Nasdaq launched a competing bid ASA, and its largest pension fund. ministry’s ruling. “We have committed Oslo Bors VPS notes the decision and business and the employees,” Oslo Bors over trade. On Friday, the US in January securing the backing of Oslo DNB spokesman Thomas Midteide to selling our shares to Nasdaq, and for will work closely with the new majority said in statement on the Norwegian more than doubled tariffs on Bors’s board and its two largest share- said in an e-mailed statement that the our part this commitment will run until owner in order to ensure the best pos- OTC website. $200bn worth of Chinese prod- ucts from 10% to 25%, which elicited an immediate response from China threatening “nec- essary counter-measures”. Yesterday, the BSE Sensex MSCI adds China stocks just when foreigners don’t want them ferried over 580 points between the days highs and lows before Bloomberg putting May well on track to surpass the to have second thoughts,” said Jingyi and also add stocks listed on the tech- which is dominated by retail investors. closing 372.17 points lower Singapore 18bn yuan outflow in April. Pan, a market strategist at IG Asia Pte heavy ChiNext board on May 29. Recent volatility in Chinese shares at 37,090.82. The Nifty lost Chinese stocks remain some of the best Ltd in Singapore. It will announce the changes later won’t have an impact on MSCI’s plans over 1% or 130 points to drop performing in world this year, yet about The Shanghai gauge closed 1.2% lower yesterday. to raise the weighting of large-caps this to 11,148.20 during the day’s Overseas investors can soon own more $1tn has been wiped from the country’s yesterday after the latest rout of trade The weightings are set to be increased year, according to Zhen Wei, director of trade. Chinese stocks – the trouble is they equity markets in just three weeks as talks ended in stalemate. again later this year. China research at MSCI Inc. “Although, the picture has don’t seem to want them. the trade dispute with the US returned US off icials are expected to announce The move will draw foreign inflows However, it could mean a change in the not been rosy for investors, we Foreigners are dumping mainland- to centrestage. details of their plans to impose a from index-tracking funds, though number of mid-caps that are included still believe that this decline is listed shares at a record pace, just as Concern that Beijing may pare back 25% additional tariff on all remaining that doesn’t guarantee a boost for the in the November review, he said in an providing an opportunity for MSCI Inc prepares to expand their stimulus plans also weighed: the imports from China. market: the initial inclusion of A shares interview in Singapore on Thursday. those who are willing to build weighting in its benchmark indexes. Shanghai Composite Index has dropped Northbound trading was closed due to last year did little to stop the worst rout “If A shares underperform other their portfolios,” said Sameet Already this month, 17.4bn yuan 11% from an April peak. a holiday in Hong Kong. in a decade. emerging markets on relative terms, it Chavan, chief analyst-tech- ($2.6bn) of A shares have been sold “Renewed fears of further trade MSCI will increase the inclusion factor Inflows from the inclusion are minor will be reflected in market weight,” and nical and derivatives,” Angel through trading links with Hong Kong, escalation had invited foreign investors of large-cap A shares to 10% from 5% compared to the size of China’s market, vice versa, he said. Broking.

Lack of US-China trade deal weighs on Asian markets

AFP of the G20 summit to hash out their Premier Liu He, had warned earlier and it’s unlikely we’ll see the situation Hong Kong diff erences on trade – but no new talks that Beijing “must respond” to any turn for the better in the near term,” are yet scheduled. US tariff s – while China’s state media said Raymond Chen, a portfolio With another round ending without a blamed Washington for the lack of manager with Keywise Capital Markets in Asia were down yesterday deal, markets are underpricing how progress. Management Beijing Ltd. as the lack of a US-China trade deal long the US-China trade talks may “US-China trade relations will continue “Now all eyes will turn to China’s cast a cloud over nervous traders. drag on, Eleanor Creagh, a Sydney- centre stage this week with most other policies and how it will stimulate Investors watched the latest based Australia market strategist at data and events relegated to a distant domestic consumption to maintain its developments warily in the trade Saxo Capital Markets, told Bloomberg second place,” said OANDA senior growth.” war between the world’s top two Television. market analyst Jeff rey Halley. The yuan dropped 0.6% in off shore economies, after negotiations in The “underlying relationship is going “China will no doubt announce trading yesterday after having lost Washington ended Friday without to be fraught with much deeper retaliatory measures while the US may about 2.4% in May, making it one of agreement and a tariff hike on Chinese tensions,” she said. provide more concrete start dates for the worst performing currencies in the imports went into eff ect. Trump had accused Beijing of the newly-imposed tariff s. world. Almost all Asian markets were lower as reneging on its commitments and Markets can expect short-term Japan yen – often a safe haven in the week’s trading began, with Tokyo’s ordered new punitive duties – which whipsaw price action as the street time of crises – extended gains after benchmark Nikkei 225 index closing took eff ect Friday – on $200bn worth hangs on every little comment capping its fourth weekly advance down 0.7% at 21,191.28. of Chinese imports, raising them to emanating from Washington DC and against the dollar on Friday. Shanghai was down 1.2 % at 2,903.71, 25% from 10%. Beijing.” Amid nervousness in China Traders will also be watching this week Singapore shed 1%, while Taiwan and He then ordered a tariff hike on markets, state funds reportedly for earnings reports from Chinese tech Seoul both dropped 1.4%. almost all remaining imports from intervened to prop up shares giants Tencent and Alibaba, and key White House economic advisor Larry China, which are worth about $300bn, yesterday and again Friday, when the data on China’s industrial production A pedestrian looks at an electronic stock board outside a securities firm in Kudlow said US President Donald according to US Trade Representative Shanghai Composite closed up more and retail sales slated for Wednesday Tokyo (file). Tokyo’s benchmark Nikkei 225 index closed 0.7% down at 21,191.28 Trump and China’s Xi Jinping could Robert Lighthizer. than 3%. – the same day figures are due for US points yesterday. meet next month on the sidelines Beijing’s top trade negotiator, Vice “Trade talks have come to a deadlock retail sales and industrial production. Gulf Times Tuesday, May 14, 2019 11 BUSINESS

Swedbank hunts for CEO as dirty money investigations continue

Bloomberg proposal for a new CEO, its head of wealth man- its value. It “will be diff icult” to find someone, Persson is set to become the next chairman, Stockholm agement, was rejected by the financial regulator Ahokas said. after the bank parted ways with Bonnesen sup- late last year. “We’re seeing margins pressed in many places, porter, Lars Idermark. On Monday, Swedbank “As with the Danske case, it requires that you look increasing compliance costs include anti-money announced plans for a new board. As it tries to find a new chief executive off icer, the a bit farther out, and that’s a big challenge at the laundering, and then the economy also seems Its shareholders have called an extraordinary bank at the centre of Sweden’s worst ever money- moment,” Ahokas said. “I’m sure that Danske has not to be going at the same level it used to, and general meeting that’s due to take place before laundering scandal may have limited options. gone through all the potential Nordic candidates, you still have negative rates. I would not be June 21. To join the new board, they are propos- Swedbank AB’s “pool of candidates is pretty and I’m sure that Swedbank is doing the same.” screaming to be a bank CEO.” ing Josefin Lindstrand, an attorney who has small,” said Matti Ahokas, head of equity research Running a bank is hard enough these days, given Swedbank’s former CEO, Birgitte Bonnesen, was worked internationally on money laundering at Danske Bank in Finland. the additional regulatory requirements and new fired in March amid allegations that she misled issues, and Bo Magnusson, a veteran of Swedish He points to the example of Danske Bank A/S, compliance standards. But taking on the top job the public about the severity of the laundering bank SEB AB, which has so far largely escaped which took more than seven months to replace in a firm that’s the target of multiple investiga- scandal. Swedish media have reported that the scandal. its disgraced CEO, Thomas Borgen. The Danish tions in Europe and in the US isn’t necessarily bank may have handled more than $100bn in They will replace members who sat on the board lender at the centre of a $230bn laundering aff air something many potential candidates will jump potentially suspicious transactions. while the money laundering allegedly took place, Pedestrians walk past a Swedbank bank branch in Riga, said on Friday it had finally settled on 56-year-old at, according to Ahokas. What’s more, Swedbank Swedbank, which dominates financial markets in from 2010 to 2016. Board member Peter Norman Latvia. The Danish lender said on Friday it had finally Dutchman and ABN Amro Group N.V. veteran, is Europe’s worst performing financial stock the Baltic region, has gone into damage-control won’t seek re-election after questions were raised settled on 56-year-old Dutchman and ABN Amro Group Chris Vogelzang, to take over. Danske’s original so far this year, having lost about a quarter of mode. Former Swedish Prime Minister Goran about his ties to the financial regulator. veteran, Chris Vogelzang, to take over as CEO.

Small businesses squeezed by Fed’s Kashkari adds Trump’s big duties on goods inequality to argument Bloomberg additional costs from the New York tariff s, smaller firms often must use cash to pay the tariff s that they’d otherwise Figuring out how to pay spend on hiring more another looming tariff bill employees, marketing or isn’t the way Robert Heiblim expanding their businesses, for keeping rates low would’ve chosen to spend said Heiblim, who’s chairman National Small Business of the Consumer Technology Bloomberg on the outlook for infl ation,” Week. Association’s Small Business New York Kashkari said. “My economists Heiblim and his 25-employee Council. are very quick to point out that company now face paying a Tom Lix, founder of Cleveland analysis is assuming a static view 25% duty — up from 10% — on Whiskey in Cleveland, Ohio, ederal Reserve offi cials are of labour’s share.” almost half of the consumer employs 15 people but has speaking out about rising Growth in average hourly electronics they have made not filled four positions that Finequality and the harm it earnings has accelerated to about in China as the trade war he planned to because of the does the US economy, but most 3.4% on average so far in 2019, between the world’s two tariff s. He had also hoped to still hesitate to say monetary versus about 2.9% on average in largest economies escalates. expand distribution into Asia policy can do much to help. 2018. Meanwhile, a measure of Their predicament came but hasn’t because retaliatory Neel Kashkari is starting to underlying price pressures Fed about all too quickly. tariff s on whiskey sapped sound like an exception. Since offi cials watch closely moderat- Negotiators had appeared demand. becoming president of the Min- ed to 1.6% in March from about to be nearing a deal when “We are going to get hit neapolis Fed in 2016, he’s been 2% — the Fed’s offi cial target President Donald Trump across many industries if we a consistent dove, arguing for number — in December. on Sunday unexpectedly head down this path,” Lix keeping interest rates lower as Between 2015 and 2018, announced the tariff increase, said on a call on Thursday the labour market heals. Fed offi cials raised rates from which took eff ect 12:01am on with small business owners In an interview on Friday, near zero to just under 2.5%. Friday, in response to what arranged by Tariffs Hurt the Kashkari said the Fed “has a Throughout the current expan- he said was China reneging Heartland, an umbrella group very powerful role to play,” and sion, longer-term rates have on previous commitments of trade associations pushing that policymakers should take mostly tracked wage growth, due in trade negotiations. The back against Trump’s levies. income distribution into ac- in part to investors’ perceptions shocking development, At least with the previous count when assessing if they’ve Neel Kashkari, president and CEO of the Federal Reserve Bank of Minneapolis, speaks during a discussion at that Fed offi cials, watching the coming on the week the US three rounds of tariff s that achieved their goal of maximum the National Association for Business Economics policy conference in Washington, DC (file). In an interview job market improve, would re- Small Business Administration Trump imposed on Chinese employment. on Friday, Kashkari said the Fed “has a very powerful role to play,” and that policymakers should take income spond with rate hikes to ward off designated to celebrate imports, there was some Kashkari’s break from Fed tra- distribution into account when assessing if they’ve achieved their goal of maximum employment. infl ationary pressures. entrepreneurship, is the advance notice, said Tiff any dition on inequality adds to the More recently, longer-term latest blow to firms such as Zarfas Williams, owner of the case for keeping interest rates low. income going to wage-earners during the current expansion. crease in labour’s share, but it rates have come down as Fed Heiblim’s that can’t easily Luggage Shop of Lubbock in He suggested faster wage growth “goes to the heart of the rising Kashkari said the decades- didn’t really translate into price offi cials scaled back plans for pass along or absorb more Texas. Trump gave only five and low unemployment may not inequality of wealth and the un- long slide in labour’s share of infl ation, because profi ts took a additional hikes, despite accel- costs – especially on short days’ notice with the latest be putting much upward pressure equal sharing of prosperity.” income — and corresponding hit.” erating wage growth. Passing notice. increase. on infl ation because workers have Both, however, were careful rise in corporate profi t margins In other words, companies concerns about global growth “I’m not Apple who can just “This has caused us to lost a lot of their bargaining power to point to other parts of gov- — may help explain the puzzling may be making so much money in late 2018, along with reced- say, ‘Well, if you want the new scramble,” Williams said on in recent decades, echoing a point ernment for solutions. Williams lack of infl ation despite rising that they’re more prepared to ing infl ation since then, have iPhone, it’s now $1,000,” said the call. About 85% of the Fed vice chairman Richard Clarida said he doesn’t think the Fed, wages. give more of it to workers as outweighed a strengthening job Heiblim, president of Boulder goods she sells are from has made. “by moving interest rates, is go- It’s an idea that Clarida, who tighter labour markets lead to market. International in New Jersey. China, and she’s already heard Other Fed offi cials are also ing to aff ect that very much,” joined the Fed in September, has faster wage growth, rather than Kashkari said he’ll be keeping “Suddenly, if you just need a from major vendors that paying more attention to rising while Brainard said “monetary explored in recent years. His fi rst offset the higher labour costs an eye on the labour share data whole lot more cash, it’s really prices will rise in line with the inequality, which was an oft-cit- policy aims to infl uence em- big initiative on the job has been with higher prices. If so, that going forward to assess whether disruptive.” tariff s, she said. ed factor behind Donald Trump’s ployment and infl ation over the to organise a series of “Fed Lis- would have important implica- wage growth can continue to rise The US tariff hike on some Heiblim has a shipment of 2016 presidential victory and is business cycle, as opposed to ad- tens” events hosted around the tions for the Fed’s policy strat- without putting upward pres- $200bn in Chinese goods Bluetooth speakers and other now shaping the 2020 election dressing these longer-run struc- country. The goal is to gather egy. sure on price infl ation. came as China’s top trade goods en route from China debate as well. tural changes.” input from the community that For decades, the strategy has “If businesses are re- envoy, Liu He was in that he expects to arrive in New York Fed President John Wealth in the US has become could help strengthen the cen- been to raise or reduce interest ally struggling to find work- Washington for two days the US next week, and he Williams and Governor Lael increasingly concentrated in the tral bank’s existing policy frame- rates in a bid to keep the un- ers, a natural conclusion of of talks through Friday. was initially concerned he’d Brainard both spoke about it on hands of the richest households work. employment rate near a certain that should be that workers While Trump said a deal is have to pay the higher duty Friday. in recent decades. At one such event — at the estimated “natural” level cor- have relatively more bargain- still possible this week, he’s on them. But US Customs Williams told an audience in Fed data show the share of Minneapolis Fed in April — responding to full employment, ing power than they had in the also threatened to impose and Border Protection said the Bronx that widening inequal- the top 1% of the wealth distri- Clarida, sitting next to Kashkari which in turn is thought to sta- past,” Kashkari said. “It’s not an additional 25% tariff on on Thursday that the 25% ity “is undermining, I believe, bution increased to nearly 32% in the audience during a presen- bilise infl ation. But a dramatic unreasonable to then think that $325bn of Chinese imports. tariff would be assessed only much of what makes our coun- in 2018 from 23% in 1989. And a tation on the distributional im- shift in the distribution of in- would have some effect, and China has promised retaliation on products exported after try great in terms of econom- measure of labour’s share of in- pacts of monetary policy, sug- come and wealth in recent years workers as a whole would cap- on US exports. 12:01am on Friday. ics,” while Brainard, speaking in come developed by Clarida has gested to the panellists that in may have undercut its relevance. ture a larger share of income Unlike larger firms that “But it doesn’t help me for the Washington, said a decades-long yet to rise much from the his- recent US economic expansions, “It’s something we talk about than they have been in recent can more easily handle the next shipment,” Heiblim said. decline in the portion of national toric lows that have prevailed “you did see this late-cycle in- a lot here as we’re deliberating years.” US Supreme Court lets App Store antitrust suit proceed against Apple

Reuters segment of the US economy worth hundreds of type of case that the court had previously Washington billions of dollars in annual sales. prohibited. The dispute hinged in part on how the justices Gorsuch also was appointed by Trump. would apply a decision the court made in 1977 Mark Rifkin, a lawyer representing the plaintiff s, The US Supreme Court yesterday gave the to the claims against Apple. said he was gratified by the court’s decision, go-ahead for a lawsuit by consumers accusing In that case, the court limited damages for which “reaff irmed the straightforward principle Apple Inc of monopolising the market for anti-competitive conduct to those directly that consumers who purchase a monopolised iPhone software applications and forcing them overcharged rather than indirect victims who product directly from the alleged monopolist to overpay, rejecting the company’s bid to paid an overcharge passed on by others. may sue the monopolist to recover the full escape claims that its practices violate federal Explaining the ruling from the bench, amount of the overcharge they are forced to antitrust law. Kavanaugh said the 1977 precedent was “not pay by reason of the monopoly.” Apple shares were down about 5% after the a get-out-of-court-free card for monopolistic Rifkin said the alleged overcharges paid by justices, in a 5-4 ruling, upheld a lower court’s retailers,” an apparent allusion to the popular consumers “will be measured in the billions of decision to allow the proposed class action board game Monopoly. dollars.” lawsuit to proceed. Noting that they pay Apple — not an app A spokeswoman for Apple could not The plaintiff s could seek billions of dollars in developer — whenever buying an app from immediately be reached for comment. damages if they win on their claims that Apple the App Store, the iPhone users who brought The plaintiff s, including lead plaintiff Robert required apps be sold through its App Store the case said they were direct victims of the Pepper of Chicago, filed the suit in a California and extracted an excessive 30% commission overcharges. federal court in 2011, claiming Apple’s on purchases. Apple said the consumers were indirect monopoly leads to inflated prices compared to Conservative Justice Brett Kavanaugh, an purchasers, at best, because any overcharge if apps were available from other sources. appointee of President Donald Trump, joined would be passed on to them by developers. They were supported by 30 state attorneys the court’s four liberal justices to rule against The court yesterday agreed with the general, including from Texas, California and the Cupertino, California-based technology consumers. New York. company and wrote the decision. “Apple’s theory would provide a roadmap for Apple, which was also backed by the US Apple shares were trading down $10 at 187.04 monopolistic retailers to structure transactions Chamber of Commerce business group, had by midday. with manufacturers or suppliers so as to evade sought to dismiss the case, arguing that the The company, backed by the Trump antitrust claims by consumers and thereby plaintiff s lacked the required legal standing to administration, argued that it was only acting thwart eff ective antitrust enforcement,” bring the lawsuit. as an agent for app developers, who set their Kavanaugh wrote. After a federal judge in Oakland, California own prices and pay Apple’s commission. Dissenting from the decision, conservative threw out the suit, the San Francisco-based 9th Apple had argued that a Supreme Court ruling Justice Neil Gorsuch, said the decision is US Circuit Court of Appeals revived it in 2017, The US Supreme Court building in Washington, DC. Apple had argued that a Supreme Court ruling allowing the case to proceed could pose a “not how antitrust law is supposed to work” finding that Apple was a distributor that sold allowing the case to proceed could pose a threat to e-commerce, a rapidly expanding segment of threat to e-commerce, a rapidly expanding because it gives a green light to the exact iPhone apps directly to consumers. the US economy worth hundreds of billions of dollars in annual sales. Tuesday, May 14, 2019 GULF TIMES BUSINESS

Crude oil futures continue to decline on lack of trade talk progress

www.abhafoundation.org issues and the geopolitical tensions and a Malaysian cargo that didn’t in Latin America, Africa & the find a buyer, according to shipping Middle East. sources. In Europe, spot LNG Oil Whereas, demand uncertainties supply was ample, especially from Benchmark crude oil futures are spurred by trade disputes, the Yamal plant, which weighed continued to decline last week, especially between the US & China, on prices. Meanwhile, some other with relatively small losses of which is undermining global growth markets had more attractive about 0.3% and 0.5% for Brent and and energy demand. prices with a revived domestic gas WTI respectively. The week saw demand, like in Spain and Mexico. volatile trading activity, with prices Gas In the US, alternating between gains and Asian spot LNG prices remained Henry Hub natural gas futures losses. flat last week, pausing after the gained 2% last week due to cooler Prices were pulled down mainly by previous week’s recovery. Traders weather forecast and LNG export US threats to increase tariffs from believe that buyers were optimising plants working at full pace. In 10% to 25% on $200bn worth of their positions not only for June addition to the three LNG plants first gas this month. In the UK, milder weather projections, healthy This article was supplied by Chinese goods, that were finally but also for July. The lacklustre already operating (Sabine Pass, NBP gas futures lost almost 5%, Norwegian flows and strong wind the Abdullah bin Hamad Al-Attiyah imposed on Friday due to a lack of Asian LNG demand was caused Corpus Christi & Cove Point), more than erasing the previous output at the beginning of the International Foundation for Energy trade talk progress. Further signs in part by some reselling activity Cameron LNG is preparing for its week gains. Prices declined on week. and Sustainable Development. of US crude production growth also weighed on prices, as it is expected to rise this year by no less than 1.5mn to average 12.5mn bpd. However, price losses were limited by supply uncertainties that are currently tightening the market balance. Tension between Iran and the US is rising, with the latter sending more military personnel and equipment to the Middle East. Iranian crude shipments are expected to further decline to 0.5mn bpd this month, as sanction waivers were removed. Prices also received support from an unexpected draw in US crude stocks, of about four million barrels, in the precedent week. Uncertainties are taking a larger place on the trading stage, as the crude market looks for a better view on where the fundamentals are heading. Supply uncertainties are mainly fuelled by supply cut extension

Deutsche Bank talks with UBS on asset management Onex to buy Canada’s WestJet deal stall: Sources

Reuters for $2.6bn in largest private Frankfurt/Zurich Talks have stalled between Deutsche Bank and UBS on a tie up of their asset management businesses due to diff erences over who would control the combined entity, people familiar with the matter said. equity-backed aviation deal Such a tie-up still made strategic and financial sense and they did not rule out that talks may Reuters though it is not yet clear what group after a difficult 2018. The deal, eventually be revived, three sources said, but Toronto might buy it. which has a value of $5bn includ- both banks had wanted to drive the venture. The WestJet purchase will be led ing debt, is expected to close in the Deutsche Bank, its asset management arm by Onex Partners, Onex’s private latter part of this year or early next DWS, and UBS declined to comment. anada’s second-biggest car- equity platform focused on larger in- year. DWS shares were down 3% at 1447 GMT, rier, WestJet Airlines Ltd, vestments. AltaCorp analyst Chris Murray rebounding slightly from sharper losses after Cyesterday accepted a C$3.5bn The airline’s board has urged said it may take until 2020 to see a the news of the stalled talks emerged. ($2.6bn) cash buyout off er from pri- shareholders to vote in favor. potential close to the transaction The idea of merging the businesses mush- vate equity group Onex Corp, send- The deal is subject to a number because of the “signifi cant number roomed in recent months as Deutsche Bank ing the carrier’s shares surging 63% of conditions, including court and of steps required between now and discussed a possible merger with smaller rival in Toronto trading. shareholder approval and receipt of the close of any transaction, with a Commerzbank. A deal for Deutsche’s DWS unit The deal is the largest private eq- certain regulatory approvals, includ- number of interested stakeholders could have been a way to finance that merger, uity acquisition of an airline, accord- A Westjet aircraft taxis at Vancouver International Airport in Richmond, ing under the Canada Transporta- expected to weigh in on the merits of but with the Commerzbank talks ending in fail- ing to Refi nitiv data. British Columbia. WestJet has had a rough start to 2019 as the worldwide tion Act. the acquisition.” ure, the urgency to do an asset management WestJet has had a rough start to grounding of Boeing 737 Max jets forced it to suspend its full-year Founded in 1984 and headquar- CIBC Capital Markets and BofA deal fizzled out. 2019 as the worldwide grounding outlook in March. tered in Canada, Onex manages Merrill Lynch were the fi nancial ad- Any deal to merge DWS with a peer and give of Boeing 737 Max jets forced it to C$31bn of assets. visers to WestJet, while Barclays, it additional scale could also be presented as suspend its full-year outlook in its investment in 2014, having made Air Canada shares jumped 5.5 %, “We do not believe this transac- Morgan Stanley and RBC Capital a strategic revamp of Deutsche Bank after the March. $3.2bn. while the broader Canadian stock tion dramatically alters the competi- Markets advised Onex. failure of the Commerzbank talks. The company has struggled with Onex shares inched lower on the index was down 1%. The Onex bid tive landscape, at least negatively,” Shares of WestJet Airlines Ltd A combined UBS asset management unit costs as its workforce unionised, Toronto Stock Exchange. comes at a time when private equity Canaccord Genuity analyst Doug surged as much 63.3% to C$30.24 — and DWS would have just more than 1.4tn while it added international routes Onex tried to buy Air Canada in is taking off in aviation. Taylor said. highest since March 2015. euros ($1.58tn) in assets under management and launched its budget carrier, 1999 as part of an eff ort to merge two Last week, low-cost Latin Ameri- “In our view, a private equity It was the second-most active and was considered a good fit as the two are Swoop. Canadian carriers, but that attempt can airline Viva Air received a $50mn owner of an airline is likely to remain stock in Toronto exchange. roughly the same size. Onex fi rst approached WestJet’s failed. investment from US capital fund rational with respect to its approach Up to Friday’s close, WestJet DWS chief executive Asoka Woehrmann has said board in March and conducted a Air Canada Chief Executive Calin Cartesian Capital Group that it will to yields and profi tability vs market shares had fallen 5.5% in the last 12 he wants to actively participate in consolidation strategic review. Rovinescu declined to comment on direct toward expansion. share.” months while Air Canada shares in asset management and early last year Deut- The private equity fi rm is not new the latest deal, telling Reuters “it’s The parent company of Montreal- In February, WestJet announced gained 58%.American rival United sche Bank listed it as part of a broader overhaul to investing in the aerospace indus- business as usual,” on the sidelines based Air Transat has said it is in plans to scale back capacity growth Continental Holdings, the company to help Germany’s largest bank move on from a try — it bought Spirit Aerosystems of the Air Transport Action Group talks with more than one party re- to cut costs and attract higher- that owns United Airlines, rose 28% string of lawsuits and trading scandals. from Boeing Co in 2005 and exited conference in Montreal. garding a potential transaction, al- paying customers to turn it around in the same period.

Ray-ban owner EssilorLuxottica draws line under partners’ feud

Reuters sides have increasingly accused strict balance between the two Paris each other of trying to dominate companies. in recent months. EssilorLuxottica, now owner Tensions surfaced in November of a portfolio spanning brands EssilorLuxottica declared an end when Luxottica’s founder, Leon- including Oakley, Persol, Oliver to a feud between its French and ardo Del Vecchio, who is chairman Peoples and Varilux, is due to hold Italian partners yesterday, saying of the merged entity and its larg- its annual shareholder meeting on it would drop all legal proceedings est shareholder, appeared to tap Thursday, where some minority and focus on integrating the eye- his right-hand man and Luxottica investors are expected to voice wear group formed by last year’s chief executive Francesco Milleri, their frustration over the leader- €54bn ($61bn) merger. as the next CEO. ship row. The company, which brings The battle culminated in March Some investors have also ex- together Ray-Ban maker Luxottica when Del Vecchio’s holding pressed concern that the leader- and lenses specialist Essilor also company Delfin said it would seek ship crisis might delay or scupper reaff irmed its ambition to find a new arbitration in the International promised savings, at the very chief executive by the end of 2020. Chamber of Commerce, prompt- core of the proposed deal when Shares in EssilorLuxottica, which ing Essilor to ask a Paris court to presented in 2017. have been rattled as the dispute nominate an outside mediator. Last week, however, the group was fought out in public, were EssilorLuxottica said in a state- confirmed 2019 targets, including up 0.86% at 1040 GMT, among ment yesterday that Del Vecchio a rise in sales of 3.5 to 5%, and the best performers on the Paris and executive vice chairman Hu- pledged to deliver on planned benchmark CAC-40 index. bert Sagnieres had “empowered” synergies of up to 600mn euros “The settlement allows a step Milleri and Laurent Vacherot, annually in the next three to five forward in restoring a more con- Essilor’s current CEO, to focus on years. structive spirit between sides, (a) the integration process and define Before Monday’s announcements, precondition to seize potential syn- strategy. several minority shareholders ergies of the merger,” equity broker As part of the agreement, neither submitted resolutions to appoint Equita wrote in a note to clients. Milleri nor Vacherot will apply for additional independent directors The merger parties were sup- the future CEO role. at Thursday’s annual meeting. posed to have equal weight in Vacherot was also appointed EssilorLuxottica’s board had the combined group’s leader- as a director of EssilorLuxot- advised shareholders to reject the ship, but the French and Italian tica to ensure the board keeps a proposals.