BRAZIL WOES | Page 3 TRADE ROW | Page 15 Army will need Trump said more than guns to favour to fi x Rio crime stiff est tariff s

Monday, February 26, 2018 Jumada II 10, 1439 AH BEST PRACTICES : Page 16 Mwani Qatar GULF TIMES signs MoU with Indonesian port BUSINESS fi rm Pelindo 1 Nakilat posts 2017 profit of QR847mn

Nakilat posted a net profit of QR847mn in 2017, the company said yesterday. The company’s earnings per share stood at QR1.53. Nakilat’s board of directors recommended distributing cash dividends to the shareholders equal to 10% of the nominal value of its capital, which is equivalent to QR1 per share. During the year, Nakilat successfully deployed the company’s strategic plans towards maintaining its global leadership in LNG transportation and the integral role it plays in Qatar’s LNG supply chain. Despite the challenges facing the energy and maritime indus- try, the company managed to achieve positive results across its operations that exceeded planned expectations in 2017 through enhanced operational eff iciency and a reduction in general, administrative expenses and finance costs. Additionally, the net profit achieved in the fourth quarter of 2017 was higher than that achieved in the third quarter and fourth quarter of 2016, by 21% and 16% respectively. Global agencies continued to rate Nakilat highly during rating aff irmations processes last year, and had attributed the com- pany’s success to its resilience to market volatility as well as its consistent and reliable record for operating LNG vessels. Nakilat’s board of directors commended the company’s steady financial results notwithstanding the challenging business environment, a reflection of the company’s strength and resil- ience. Complemented by strategic long-term agreements with well-established charterers, Nakilat has managed to maintain steady cashflow and generate positive value for our share- The QNCC board outlines the 2018 strategy before shareholders yesterday. The company has supported the construction boom in Qatar by meeting the market demand for all types of holders. Given the volatile market conditions, the company cement and washed sand successfully from its own production and at competitive prices for all products. PICTURE: Shemeer Rasheed has embarked on cost optimisation initiatives, capitalising on profitable business growth, and achieving cost savings. Nakilat continues to explore and capitalise on diff erent busi- ness opportunities and mitigating business risks to strengthen the company’s international position as a global leader in the LNG shipping industry. The board of directors also recognised Nakilat’s eff orts at attracting Qatari nationals to undertake various roles in the maritime industry which resulted in the achievement of the QNCC to operationalise ‘award for supporting Qatarisation’ at the Energy and Industry Sector’s Annual Qatarisation Review Meeting 2017. The board of directors has decided to convene the annual fi fth plant in H1 of 2018 general meeting on March 20. New production line to boost daily various products at competitive prices, its On January, 25 and February, 6, 2017, and washed sand successfully from its own cement output by 5,500 tonnes chairman and managing director Salem bin Fives commissioned two new cement mill- production and at competitive prices for all Butti al-Naimi told shareholders yesterday ing units for QNCC as part of the construc- products. By Santhosh V Perumal at the annual general assembly meeting tion of its fi fth production line in Umm Bab, The company’s production in both cat- Business Reporter (AGM) that approved QR327mn net profi t Qatar. egories of cement OPC & SRC reached and the 45% cash dividend for sharehold- QNCC is not only diversifying the pro- 3.5mn tonnes in 2017. The production of ers for 2017. duction by adding new types of cement to washed sand increased to 9.1mn tonnes and atar National Cement Company QNCC has already completed the indus- meet the demand of local market and uti- Calcium carbonate to 40,000 tonnes. (QNCC) is planning to operational- trial test for cement mills of its fi fth plant in lise the opportunity of export but also op- Sales of all types of cement reached Qise the fi fth plant by the fi rst half of accordance with the designed cement pro- timising the production capacity of washed 3.4mn tonnes in 2017, washed sand at this year to enhance the cement production duction capacity of more than 5,000 tpd. sand and calcium carbonate to meet the ex- 9.5mn tonnes and calcium carbonate at Nakilat’s board of directors has recommended by 5,500 tonnes per day (tpd). In 2014, the company had signed a let- pected local market demand. 43,000 tonnes. distributing cash dividends equal to 10% of the This production augmentation is to ter of intent with Fives FCB, France for the The company has supported the con- Sales revenue was recorded at QR 1.03bn nominal value of its capital, translating into QR1 support the infrastructure upgrade of the construction of the fi fth production line, at struction boom in Qatar by meeting the in 2017 compared to QR1.14bn the previous per share country to meet the market demand of an estimated cost of QR950mn. market demand for all types of cement year. QIC Group gets nod to hike capital to QR3.2bn

By Peter Alagos Business Reporter

Sheikh Jassim and al-Kawari along with another senior off icial disclose the 2017 financial results. atar Insurance Group shareholders approved the board’s recommenda- Qtion to increase the group’s capital QInvest records net profit of QR65.9mn from QR2.7bn to QR3.2bn during the com- pany’s annual general meeting held at the on revenues of QR368.6mn in 2017 Four Seasons Hotel yesterday. The meeting, chaired by deputy chair- man Abdulla bin Khalifa al-Attiyah, also QInvest has reported net profit of QR65.9mn on rev- said over the past years the group has successfully approved the distribution of 15% cash divi- enues of QR368.6mn in 2017. The group’s global assets structured new investment opportunities across dend and an issue of bonus shares of three stood at QR4.46bn at the end of December 31, 2017. several asset classes, with a particular focus on the for every 20 held. QInvest’s prudent investment approach, stringent international real estate market, debt and equity Al-Attiyah said the group’s consist- Al-Attiyah delivers the board of directors’ report during QIC Group’s annual general provisioning policy, and underleveraged balance investments, and funds. ent approach of applying global standards meeting yesterday. PICTURE: Shaji Kayamkulam sheet have provided stability amid regional uncertain- “These opportunities were structured with our inves- and best practices in its assessment of the ties, its spokesman said. tors in mind as we understood early on that there was current and future solvency and capital Al-Attiyah said key contributors to this percussion, which has massively infl uenced It maintained a healthy capital adequacy ratio of 26% an unmet demand in the market for access to the US adequacy requirements ensured that it re- growth were the group’s dedicated global major sectors in the region, QIC Group has as per the QFCRA (Qatar Financial Center Regulatory real estate market in a Shariah-compliant manner,” mained well-positioned and capitalised reinsurance and speciality insurance sub- witnessed strong business momentum and Authority) Basel rules against the regulatory require- he said. amidst the pressures of global market con- sidiaries, as well as the life and medical seg- has performed in line with our expectations.” ment of 10.5%. It has continued to enjoy a strong QInvest is set to launch the third in the series of ditions. ments of the business emanating from the He added, “The overall performance in liquidity position of about $120mn at the end of 2017. income-generating Ijara fund, the QInvest SQN In- Despite challenges in 2017, al-Attiyah Middle East. The international subsidiaries 2017 highlights the group’s well-thought- “In 2017, we were able to capitalise on relatively more come fund, in 2018 to meet the market demand. The said, the group recorded strong operational namely Qatar Re, Antares and QIC Europe out strategy and its successful execution. favourable global market conditions. We remain closed-ended fund provided a unique opportunity performance, coupled with robust premi- Limited (QEL) now account for approxi- For 2018, our outlook remains cautiously prudent in our management of risk and have built for investors to access income generating assets in um growth, taking gross written premium mately 75% of the group’s total GWP. positive. We shall focus on consolidation up a strong liquidity position and an underleveraged developed markets. (GWP) to QR11.7bn, up by 18% vis-à-vis the QIC Group’s net investment income came and enhance our operational effi ciency. balance sheet that has enabled us to invest in key On investment banking division, which completed same period in 2016. in at QR903mn, which can be attributed to “With a renewed focus on achieving bot- global markets on an opportunistic basis,” said Sheikh several transactions and advisory mandates, QInvest The underwriting results for the group in the group’s prudent principle of managing tom line driven growth, we will continue to Jassim bin Hamad bin Jassim bin Jaber al-Thani, said it sees significant interest from Qatari institutions 2017 amounted to QR115mn, while consoli- the investment portfolio and pursuing an maximise value for shareholders, our trust- QInvest chairman. and private clients as they look to re-adjust business dated net profi t stood at QR418mn. As of eff ective cost discipline. ed business partners and customers, while Tamim Hamad al-Kawari, QInvest chief executive, portfolios in light of the current market environment. December 31, 2017, QIC Group’s sharehold- Group president and CEO Khalifa Abdulla supporting development of the sector and ers’ equity stood at QR8.02bn, he said. Turki al-Subaey said, “Despite global re- the economy.” Gulf Times 2 Monday, February 26, 2018 BUSINESS Saudi infl ation jumps on VAT, fuel price hike

Reuters Dubai

audi Arabia’s annual consumer price infl ation jumped to 3% in SJanuary after the government introduced a 5% value-added tax and hiked domestic gasoline prices at the start of the year, offi cial data showed yesterday. The fi gures suggested the new tax and more expensive fuel, part of a gov- ernment drive to cut a big budget defi - cit caused by low oil prices, had a large impact on Saudi consumer spending power in some areas last month. Consumer prices rose 3.9% from the previous month in January. Food and beverage prices jumped 6.7% from a year earlier, restaurants A Saudi man walks past a pump at a petrol station in Jeddah (file). The VAT rollout and hotels gained 5.8%, and transport and more expensive fuel had a large impact on Saudi consumer spending power costs soared 10.5%. in some areas last month, according to off icial data. However, clothing and footwear prices fell 7.9% from a year earlier, basket in January, housing and utilities their prices instead of absorbing ad- partly because of deep discounting were given a bigger weighting, of more ditional costs. by retailers battling a slow economy, than 25% instead of 20.5%. The International Monetary Fund while housing and utility prices rose The weighting of food and bever- has forecast Saudi infl ation will aver- only 1.3%. age prices was cut to under 19% from age 5% this year, after consumer prices Residential rents are exempt from nearly 22%, and transport got a slightly fell 0.2% last year. the tax, and the Saudi real estate mar- smaller weighting. The UAE introduced 5% VAT at the ket has been slumping. The government has taken steps to same time as Saudi Arabia, and data The statistics agency changed the ease the impact of the tax and higher released last Thursday showed annual base year for the consumer price in- fuel prices on consumption, introduc- infl ation in the emirate of Dubai rising dex to 2013 from 2007 last month and ing a system of cash allowances for me- to 2.7% in January from 1.5% in De- adjusted the basket of goods and serv- dium- and lower-income households, cember. ices, making direct comparisons with and announcing an additional 50bn The tax appears to be pushing prices previous months diffi cult. But the new riyal ($13.3bn) package of handouts to up less sharply in the UAE than in Sau- tax and higher gasoline prices clearly citizens last month. di Arabia because Riyadh, running a pushed up infl ation sharply. But Saudi infl ation is expected much larger fi scal defi cit than the UAE Annual infl ation was just 0.4% in to rise further in coming months as and therefore more eager to raise new December, according to previously re- consumer demand begins to recover state revenues, did not exempt near- leased data using the old basket. from the initial shock of the tax, and ly as many goods and services from Among changes to the consumer as more retailers and companies raise the levy. Gulf Times Monday, February 26, 2018 3 BUSINESS Army will need more than guns to deal with Rio de Janeiro crime

Bloomberg Rio de Janeiro

When Brazil’s President Michel Temer put an Army general in charge of Rio de Janeiro’s security just the week before the last, few people on the streets complained. The latest wave of violence in this crime-prone city reflects the economic malaise that has come with recession and hinders its recovery. It is particularly frustrating because Rio appeared to have made a lasting breakthrough in containing crime, much like New York City did in the 1990s. Pollster Ibope found 83% of Brazilians support the intervention. “Police are unable to handle the situation so let’s see if the military can bring order to Rio de Janeiro,” said Felicya Oliveira, 31, a restaurant worker who has lost count of the times she’s had to miss work because of shootouts in the shantytown where she lives. The story behind the surge of violence in Brazil’s postcard city is one of a prolonged economic crisis and fiscal mismanagement that has left the entire state without money to invest in its police, or even to pay salaries. With the homicide rate at its highest since 2009 and a truck being robbed in the state every hour, crime in turn hits businesses and growth. Retailer Magazine Luiza is backing off the state and bond manager Pimco is planning to move its Latin America off ice to Sao Paulo. “Certainly today the issue of security is a key factor in improving Rio de Janeiro’s economy,” said Guilherme Merces, chief economist at Rio’s industry group Firjan. “We can’t quantify the whole impact of workers staying home to care for children who can’t go to school, or who can’t commute, nor the loss of investments, but certainly it is a rather high cost.” While the Brazilian economy as a whole emerged from recession last year with an estimated growth of 1%, Rio’s has contracted by roughly the same amount amid sharp downturns in the services sector and civil construction, recent projections from Firjan and consultancy Tendencias show. Excluding Rio, which accounts for more than a tenth of the nation’s gross domestic product, Latin America’s largest economy would have expanded 1.26%, Firjan estimates. Soldiers were deployed on February 19 night along motorways that had been plagued by cargo theft, according to Rio’s security secretariat. Television images the next day showed them inspecting vehicles at roadblocks. The operation involved 3,000 soldiers, in addition to police. Part of Rio’s budgetary woes are due to massive infrastructure spending ahead of the 2014 World Cup and the 2016 Olympics, as well sky-rocketing personnel and pension outlays. At the same time oil prices fell, revenue shrank and a massive corruption scandal at Rio-based oil company Petrobras thwarted expansion plans. Rio’s previous governor has been indicted more than 20 times. As a result of the state’s downturn, Rio’s services sector shrank twice as much as Brazil’s did last year. Rio lost 92,000 formal jobs in 2017, more than any other state and more than the country as a whole. “We’ll only win the war on crime by creating jobs,” Rio governor Luiz Fernando Pezao said at an event on February 20. “And we need a strong rebound in economic activity.” There are some signs of improvement on the horizon, as expanding oil production will help shore up public coff ers and financial aid from the federal government allows Rio to pay delayed salaries to its workers. Combined, the measures are expected to provide a boost to government spending and consumption. “Rio had really bad performance during the recession,” said Camila Saito, an economist at consultancy Tendencias who specialises in regional analyses. “Our preliminary data show it will be among the last ones to Armed forces members patrol during an operation against drug dealers in Vila Kennedy slum in Rio de Janeiro on Friday. The latest wave of violence in this crime-prone city reflects the emerge from it.” economic malaise that has come with recession and hinders its recovery.

Bloomberg QuickTake Brazil’s highs and lows

By David Biller of his conviction on January 24, Rio de Janeiro threatening his campaign to become president again in an October election. A Brazilian law states that a criminal It’s 2009 and Brazil’s beloved conviction upheld in an appellate President Luiz Inacio Lula da Silva court bars anyone from becoming a proclaims the nation’s biggest oil candidate, though it’s unclear whether discovery its “passport to the future.” Lula could still run if he continues to Rio de Janeiro is awarded the 2016 appeal his case to higher courts. He Olympics on top of the 2014 World has led in opinion polls, promising Cup, and Brazilians see both as belated to undo many of the market-friendly recognition of their rising international policies adopted by President Temer. standing. The global financial crisis Temer’s allies last year defeated is a hiccup for eff ervescent Brazil two motions in the lower house of as a commodity boom surges. Fast Congress that would have put the forward to today and unemployment president on trial for corruption and remains in the double digits as the illegal campaign financing. The votes economy emerges from its worst paved the way for him to turn his recession on record. An investigation attention to economic reforms. He’s into corruption that started at the already attained overhaul of labour state-run oil colossus Petrobras, laws and a constitutional amendment dubbed Carwash, has expanded and to limit public spending and help ensnared members of the business put public finances in order, and he’s and political elite. Prosecutors set his sights on pension reform, a even won a conviction of Lula, one plan welcomed by investors. Still, of the most popular presidents in the International Monetary Fund Brazilian history, on graft and money- estimates that Latin America’s largest laundering charges in 2017. His economy will grow 1.9% in 2018, population. Its off shore oil reserves prices at lower levels and industry a solid footing? His plan began Temer can implement some micro- protege and successor, Dilma Rousseff , a far cry from the pace during the include the Western Hemisphere’s sputtering, that model appears to have with changing the constitution economic reforms by presidential was removed from off ice after being commodities boom. biggest discovery since 1976. It has the run its course. In 2017, the economy to limit public expenses for up decree but requires congressional impeached for bypassing Congress The Background second-largest iron ore reserves, is the recorded its first growth in two years. to 20 years. Now he wants to approval for major budget measures. to finance government spending. second-largest producer of soybeans Investment, which the government repair the overburdened social- Both Congress and the Temer And the current president, Michel Brazil has suff ered boom-and-bust and third-largest of corn. On the other hopes will become the economy’s security system and continue to administration have approval ratings Temer, the former vice president, has cycles and political instability since hand, its wealth distribution remains new engine, rose in the third quarter create a more business-friendly below 10%. And there’s no reason to survived a massive corruption scandal independence from Portugal in 1822. among the most unequal. Good times after 15 straight declines. But as a environment. But the distraction think investigators have unearthed himself, at least for the time being. Almost half its 2017 exports were raw did provide cash to beef up the Bolsa percentage of gross domestic product, of the corruption allegations has the full scope of high-level corruption What went wrong? Can Brazil get its products, so its prosperity is sensitive Familia social-welfare programme that it remains about one-third that of significantly diminished Temer’s odds in Brazil. Carwash has not only magic back? to the vagaries of the commodities became an international model for China. of accomplishing pension reform, and produced scores of defendants, it has The Situation markets. On paper, Brazil looks like the eradication of poverty. The new The Argument legislators are increasingly hesitant exposed a system of institutionalised a powerhouse. It’s the fifth-largest middle class went shopping, boosting to pass unpopular measures as Brazil corruption connecting Brazil’s largest A Brazilian court rejected Lula’s appeal country in the world, by land mass and growth. Now, with commodity Is Temer putting Brazil back on draws closer to October elections. companies and political parties. Gulf Times 4 Monday, February 26, 2018 BUSINESS

Yen surge ends $353bn Anbang’s takeover puts insurer’s wait to buy US bonds

China fi rms on notice Bloomberg Tokyo Reuters Shanghai eiji Yasuda Life Insur- ance Co is boosting hen the Chinese government Mpurchases of unhedged on Friday took control of An- US debt, encouraged by the yen’s Wbang Insurance Group Co, strong start to 2018 and rising owner of New York’s iconic Waldorf yields. Astoria Hotel, it cited provisions in the “The time for unhedged buy- country’s insurance law designed to ing has fi nally come,” Shinji head off fi nancial calamity. Inoue, a manager of invest- The manoeuvre was sudden but not ment planning department at altogether surprising, as the once ag- Meiji Yasuda, which oversaw the gressively acquisitive conglomerate equivalent of $353bn in total as- had been under tightening government sets as of December, said in an scrutiny for months, with its insurance interview. “We were at our wit’s revenue stream curtailed, regulatory end until the third quarter with a teams supervising its operations since sheer lack of volatility. I’m glad June and its chairman in police custody. we’ve endured. The environ- Chinese law allows for similar takeo- ment now is easier to invest in vers across the fi nancial sector; bank- foreign bonds.” ing and securities laws, for instance, The recent advance in US allow the state to step in with banks and yields is boosting their appeal brokerages, legal analysts say. for Japanese insurers by provid- While lawyers and analysts do not ing some cushion against ris- think the Anbang seizure heralds an ing hedging costs. The 10-year impending wave of nationalisations, Treasury yield hit a four-year they say it sets a fresh, and for some, high of 2.94% last week and worrying precedent. Goldman Sachs Asset Manage- The government showed it was not ment predicts a rise to as high as afraid to wield a big stick. 3.5% in six months as the market “I think any private players in the prices in a steeper pace of Fed- fi nancial sector who are big enough to eral Reserve tightening. potentially be a headache for the gov- Japanese life insurance com- ernment and who have had regulatory panies bought a net ¥1.05tn problems must be worried,” said An- ($9.7bn) in overseas debt last drew Gilholm, director of analysis for month, the most since August China and North Asia at the risk con- Anbang logo is seen on a building in Beijing. China’s unprecedented takeover of private insurer Anbang confirms that toxic risks lurk in the world’s second-largest 2016, according to data from the sultancy Control Risks. The one-year economy while signalling the state’s tightening grip on China Inc despite reform rhetoric, analysts said yesterday. Ministry of Finance. takeover of Anbang, extendable for a The yen climbed to 105.55 per second year, was triggered under arti- It later divested. The CIRC said on that created assset-liability mismatch- government this year is to tackle and HNA did not have an immediate dollar last week, its highest level cles 144 and 145 of the Insurance Law, Friday that Anbang’s chairman, Wu es. The CIRC has not responded to calls minimise fi nancial risk, and therefore comment yesterday. A source close to since November 2016, as a glo- according to the China Insurance Reg- Xiaohui, was being charged with eco- and a fax on Friday seeking more infor- it’s quite possible that they may step in the company noted that there were sig- bal stock rout spurred demand ulatory Commission, or CIRC. nomic crimes and the company had mation about the takeover. to take control of other conglomerates nifi cant diff erences between HNA, an for haven assets. It traded 0.4% The provisions grant the state broad broken the law, putting Anbang at risk Li Shu, partner at Beijing Liang- if their instability becomes a threat to aviation-led industrial conglomerate, weaker at 107.73 in Tokyo, with powers to seize insurers that face se- of being unable to pay its debts. Gao Law Firm, said the CIRC was not the overall fi nancial sector in the coun- and Anbang. its 4.6% rise this year being the rious solvency issues, break the law, It also said things were stable now obliged to make public the evidence try,” said a Beijing-based lawyer who Gilholm at Control Risks said he did biggest among major currencies. harm the public interest, or for any and the company was operating nor- justifying its decision to seize an insur- works closely with China’s regulators. not see a risk of the government “get- Meiji Yasuda started adding other issues that may aff ect the com- mally. Since Anbang is a private com- er. Anbang isn’t the only conglomer- HNA’s intensive deal-making over ting into actual nationalisations”. to such holdings in late Janu- pany’s ability to repay its debts. pany, publicly available fi nancial de- ate with major overseas assets to come the past two years, which included in- “But there is defi nitely a trend of ary, just as the dollar-yen broke Since the mid-2000s, the CIRC has tails were sparse, so it’s hard to know under government scrutiny in recent vestments in Deutsche Bank and the government not being shy or worried below the 110-level for the fi rst temporarily taken control of least two exactly what triggered the takeover. months. Hilton hotels group, has led to height- about being perceived to be interfering time in four months, according other smaller insurance companies for The debt-fuelled company claimed HNA Group, the parent of Hainan ened scrutiny by banks and regulators in private companies. to Inoue. Of its around ¥5tn in problems arising from misappropria- 1.97tn yuan ($311.1bn) in assets and Airlines, Dalian Wanda, Fosun and of its mounting debt and use of lev- They’re not as bothered about per- outstanding foreign-bond hold- tion of funds or huge losses, according ranked 139 on the Global Fortune 500 others that had once enjoyed apparent erage. “HNA probably doesn’t know ceptions as they used to be,” he said. ings as of December, the propor- to state media. list. government support and encourage- whether to cheer that the government “They’ll now do what they deem tion of hedged and unhedged se- In both cases the CIRC mobilised a It had dropped more than $30bn on ment to invest abroad, has been buf- is prepared to step in, or hide under necessary in the national interest as curities was about equal. rescue fund to accumulate signifi cant acquisitions in recent years and was feted by the shifting policy winds. their beds in case they’re next,” said a they see it — and I think that included The insurer plans to spend “a stakes in the insurers and gain control. known for investing money in a way “One of the priorities for the Chinese fi nancial expert at a large Western fi rm. more interference in business.” couple of 100bns of yen” more buying unhedged dollar bonds, Inoue said. While there’s a “good chance” of a drop in the dollar-yen to 105, Xi’s debt crackdown goes into hyperdrive with Anbang takeover Inoue said he doesn’t expect it to fall below 100. The insurer continues to see a “moderate Bloomberg expansion. For the rest of the world, government’s cross hairs for some footing after years of debt-fuelled roughly 260% in 2016, according to uptrend” for the pair in the year Hong Kong the intervention off ers up a useful time, the takeover still came as a shock. expansion. Bloomberg Economics. Much of that starting April 1. reminder: When you do business As recently as last week the chief Because China is self-financed and debt is held by state-owned enterprises, US debt continues to be with China, you do business with the executive off icer of Hilton Worldwide credit is steered by state-owned which continue to crowd out private the focus for Meiji Yasuda. It If you needed confirmation about Communist Party. Holdings, which manages New York’s lenders to state-controlled or linked enterprise. is mostly buying Ginnie Mae China’s determination to rein in “It’s a new example of the seriousness Waldorf Astoria hotel on behalf of companies, authorities have the To be sure, decisions such as the one to mortgage-backed debt with ma- surging corporate debt, the dramatic of Xi Jinping’s government to insert owner Anbang, downplayed talk that luxury of intervening at their whim rein in Anbang won’t be without risk. turities around fi ve years, while government takeover of Anbang the party and the state at all levels of the Chinese insurer was selling the to shuff le money from one section of “Bang! is the operative word,” said also investing in US credit prod- Insurance Group Co is pretty much it. business,” said Fraser Howie, co-author hotel. Now, Hilton will find itself working the economy to another. That’s one Michael Every, head of financial market ucts, Inoue said. The unprecedented seizure of a of the book Red Capitalism who has with the Chinese government. of the key reasons why regulators are research at Rabobank Group in Hong The 10-year yield’s rise to- private insurer underscores President two decades of experience in China’s The backdrop to the pincer move on able to tackle Anbang and other high Kong. “Clearly this indicates there is ward 3% has drawn the insurer Xi Jinping’s policy drive to cut back financial markets. “They have no Anbang and its founder Wu Xiaohui, profile conglomerates without lawyers, major risk – the issue now is how do back to Treasuries after it held on the debt-fuelled excesses that qualms about coming in over the top who is to be prosecuted for alleged shareholder activists or opposition they de-risk and downsize the firm off purchases between April and have accompanied China’s growth and saying ‘we are going to take this fraud, is a robust economy that’s politicians getting in the way. when we know that this wouldn’t have December. miracle. It’s a direct hit to corporate over.’” giving off icials the running room Xi has placed financial stability on a been needed if there weren’t risky/ “We saw the 10-year yield binge spending that authorities He likened the takeover to the US to crack down on debt excesses par with national security and off icials speculative/pyramid schemes in play.” below 2.5% as too low” taking want to stem; it energises a long Federal Reserve, the Financial Industry without depressing growth. Overseas have warned of the urgent need to The Anbang intervention is “negative hedging costs into considera- running anti-corruption campaign; Regulatory Authority and the Securities investment by Chinese companies has curb credit growth in the world’s No. 2 for growth given how much has been tion, he said. “Yields around 2.7 and it demonstrates that short-term and Exchange Commission coming been strictly curtailed since last year economy. driven by all this froth,” Every wrote in to 2.8% are fi ne. US yields are economic pain will be tolerated for the together to restructure a company. as part of the broader ambition to shift Total borrowing will exceed 325% of an e-mail, and an “enormous negative if considerably higher than those longer-term goal of a more sustainable While Anbang has been in the the economy onto a more sustainable gross domestic product by 2022 from they get this wrong.” of other major countries, which is attractive”.

IMF meet to determine infl ows for Pakistan budgetary support

Internews general elections the IMF report will year would be considered as a miracle The July-January current account Islamabad be considered important to set the on the part of the incumbent regime defi cit was equivalent to 3.1% of GDP. course of actions for Pakistan’s ailing because spending spree might grip the The SBP’s projection for the FY2018 economy. dwellers of fi nance ministries both at current account defi cit is between four udgetary assistance for Paki- In 2016, Pakistan successfully com- the centre and provincial levels during and fi ve%. stan from bilateral or multilat- pleted the IMF’s $6.7bn extended the last quarter of the ongoing fi scal A court has stopped government to Beral credit agencies depend on fund facility loan programme, but the year. collect regulatory duty payment, while the outcome of an upcoming meet- country failed to undertake desirable Pakistan also agreed with the IMF to non-tariff barriers have also failed to ing of International Monetary Fund structural reforms to boost exports, keep development spending at around curtail imports so rising trade defi cit (IMF) early next month, officials said curtail imports, broaden tax base and Rs800bn to Rs850bn in the current fi s- has become a threatening challenge for yesterday. overcome losses of cash-bleeding cal year instead of the actual allocation the economy. “The budgetary support lend- state-owned entities and energy sec- of more than Rs1,000bn. Early this month, Sindh High Court ing from the World Bank and Asian tor that again turned the economy On revenue side, the government restrained the FBR from collecting Development Bank depends upon into crisis mode within just one and expects that the FBR revenues will regulatory duty imposed three months the IMF satisfactory report and half year after the end of IMF pro- go close to the Rs4,000bn mark, ago on more than 700 imported items. government’s ability to keep for- gramme. while there will be some slippages The government was expecting to save eign currency reserves held by SBP Pakistan and the IMF staff have re- on non-tax revenue sides as the $2bn $3bn on the duties during the (State Bank of Pakistan) for over vised macroeconomic projections government will not receive reim- current fi scal year. two months import bill,” one top for the current fi scal year after which bursed amount from US on account Though exports picked up more than official said. Adviser to Prime Minister on Finance of coalition support fund and there 10% in the fi rst half, they could not be- The IMF’s executive board is sched- Miftah Ismail and Governor State Bank may be undesirable collection on come even nearer to growth (18%) of uled to meet on March 5 in Washing- of Pakistan (SBP) Tariq Bajwa signed The International Monetary Fund logo on Pennsylvania Avenue in account of gas infrastructure de- imports. Pakistan, therefore, will have ton, DC for considering approval of PPM report in mid-February and al- Washington, DC. Budgetary assistance for Pakistan from bilateral or multilateral velopment cess. to manage its fi nancing requirements report on Pakistan’s post programme lowed the IMF to release the report af- credit agencies depend on the outcome of an upcoming meeting of the IMF early The shortfall will be compensated in order to avoid depletion of foreign monitoring (PPM) in order to gauge ter getting approval from its executive next month, off icials said yesterday. from other avenues. currency reserves. economic health of the country. Other board. There will also be major challenges Foreign currency reserved held by creditors will decide future budgetary Pakistan and IMF agreed to keep last year, budget defi cit stood at 5.8%. Budget defi cit came at 2.2% for the from current defi cit front, which has SBP decreased below $13bn and stood support for Pakistan on the basis of the budget defi cit projection at over 5% The federal government blamed prov- fi rst half of the current fi scal year. already peaked to $9.2bn in the fi rst at $12.8bn as of February 16, which decision. of GDP for the current fi scal year of inces for the high defi cit during the last Nonetheless, the budget defi cit if kept seven months of the current fi scal year, could barely meet import require- As the country is moving close to 2017/18 as against the target of 4.1%; fi scal year. at 5% of GDP during the electioneering up staggering 48% year on year. ments of just over two months. Gulf Times Monday, February 26, 2018 5 BUSINESS

Japanese companies to issue long-term debt

Bloomberg they should lock in funds for Tokyo the long-term,’’ said Hidetoshi Ohashi, chief credit strategist at Mizuho Securities in Tokyo. apanese companies are sell- Japanese companies have sold ing super-long bonds amid 131bn yen in bonds maturing in Jexpectations that Haruhiko 15 years or more since the start of Kuroda’s reappointment as cen- the year, according to Bloomb- tral bank governor will prolong erg-compiled data. Another easy monetary policy, even as ¥50bn of debt is in the pipeline, increases in overseas yields put including planned off erings by pressure on Japanese market Tokyu Fudosan Holdings Corp rates to rise. and Kyushu Electric Power Co, Less than a week after Prime according to people familiar Minister Shinzo Abe nominated with the matter. Kuroda for another term, Mit- The BoJ mainly targets the subishi Chemical Holdings Corp overnight interest rate and the sold what was its fi rst 20-year 10-year Japanese government debt in about a year and a half bond yield, leaving longer-term on last Wednesday. This week, rates more to market forces. The trading fi rm Toyota Tsusho Corp 30-year US Treasury yield has plans to price 20-year notes, and jumped 47 basis points to 3.2% Sumitomo Forestry Co will sell since the start of the year. The its fi rst 15-year securities ever, equivalent Japanese government according to people familiar bond rate was little changed with the matter. during the period, at 0.78%. Kuroda’s launch of the neg- Sotetsu Holdings has decided ative-interest-rate policy two to issue super-long debt on a years ago at the Bank of Japan view that rates beyond 10 years sparked a rush by companies could rise, according to Ma- to sell longer bonds as borrow- sayuki Okawa, manager at its ing costs tumbled and inves- corporate strategy division. The tors sought higher-yielding as- transport operator is planning Investors look at computer screens showing stock information at a brokerage house in Shanghai. After climbing 13% over the preceding year, the Shanghai Composite Index sets. Companies issued ¥1.68tn a 15-year issue, people familiar plunged 12% in a little over two weeks. ($15.7bn) of bonds maturing in with the matter said. 15 years or more in 2017, the sec- Still, analysts widely expect ond-highest total after record Kuroda to keep BoJ policy on sales a year earlier, according hold for now, limiting any in- to Bloomberg-compiled data. creases in debt yields, as infl a- Concern that Japanese debt’s tion remains below his 2% goal. yields may be dragged higher in Only three economists out of 26 line with its US and European expect the appointment of him counterparts’ is also prompting and his two deputies to change China stocks on shaky issuers to sell longer bonds while the course of policy, according rates are still low, according to to a Bloomberg poll. The yen’s Mizuho Securities Co. gains versus the dollar since late “Even if the BoJ is expected last year adds to the perception to make no change in its policy, that the BoJ will stay its course, ground as investors fi nancing managers may feel many analysts said in the survey. BNP Paribas plans to sell yen bonds using a new method

Bloomberg using the pot system since favour just a few Tokyo November last year in the almost ¥10tn ($93bn) samurai market, Bloomberg market into an ETF,” said Wu Yuefeng, a The earnings growth of small caps reached the highest since early 2016. and Banque Federative du Credit Hong Kong Beijing-based fund manager at Fundin has cooled and the effects of the 2015 “The positioning is very extreme,” he BNP Paribas is planning to sell Mutuel said it will also follow suit Capital Management Co, which over- boom and bust linger: even after two said. “Stability has made them a good yen bonds using a more transpar- if others begin to employ the sees about 2bn yuan ($315mn). “If this straight years of declines, the ChiNext target for leverage. Leverage has made ent method than the system method. Local companies have hina’s stock market wasn’t in continues on a large scale, it wouldn’t be gauge of venture enterprises is more them vulnerable.” that’s common in Japan, adding begun to adopt the system as great shape even before the past surprising to see sharp gains followed by than twice as pricey as the large-cap Hong said small caps will catch up this to a growing minority of firms well in recent months, turning Cmonth’s slide. The rally lead- sharp declines.” CSI 300 Index. year as regulators seek to spread gains in the nation’s debt market that away from the traditional method, ing into it was driven by a few dominant The structural imbalance is unlikely to Last year, top-performing funds across the market and the so-called Na- are moving away from opaque which carries risks that the notes industry players, favoured by investors change for now, suggesting more volatil- staked large bets in blue-chip compa- tional Team pares positions in large caps. practices. will be mispriced and bankers will concerned that smaller companies would ity ahead for the already notoriously wild nies, which Chinese investors like to call The CSI 300’s level relative to ChiN- The French bank said it will use have to shoulder unsold debt. be squeezed by higher funding costs and Chinese stock market. white-horse stocks. ext has slipped since the selloff began, the so-called pot system when The pot approach off ers “trans- a slowing economy. When mainland markets reopened on The strategy was especially profi t- though it remains near the highest since pricing samurai notes. Under the parency and a better knowledge In the 12 months through January 24, last Thursday after the week-long Lu- able and convenient for private funds 2013. arrangement, which is widely used of the investor base for the when the Shanghai index peaked, only a nar New Year holiday, consumer giants unconstrained by 10% concentration Fundin’s Wu said it will take a while in the US and Europe, syndicate issuer,’’ said Christian Ander, di- third of onshore Chinese stocks rose. Ex- including Kweichow Moutai Co outper- limits, as well as massive mutual funds for small caps to become attractive to in- banks share details with issuers rector and head of group treasury cluding those that listed in 2017 and this formed. in search of liquid stocks – a multi-asset vestors again and it will be harder to fi nd about bond buyers to ensure at Banque Federative du Credit year, four out of fi ve dropped. In the 12 months through January 24, fund raised almost 33bn yuan in a day in good picks this year. In his view, large smooth sales. In the more common Mutuel, in an interview. “If the pot The lack of breadth meant that when Moutai’s share price more than doubled. January, Securities Times reported. caps are still the way to go for now. retention system in Japan, bankers system becomes the usual way sentiment turned, the market’s source In the next two weeks, it tumbled 11%. The low volatility of large caps also “Gains in the index may be less pro- largely monopolise information to execute a Samurai bond issue, of upward momentum disappeared as The shares of the company rose 1.4% on prompted some investors to add lev- nounced this year,” he said. “As small about buyers, helping them defend then we will use it.’’ everyone rushed to exit the same stocks Friday trading, while the Shanghai Com- erage to boost returns, exacerbating caps’ valuations become more reason- their client lists but leaving the The French bank, which has at once. After climbing 13% over the posite Index was up 0.3%. their declines during the selloff, ac- able and earnings improve, they’ll be no- transactions less transparent. ¥436.7bn in outstanding samurai preceding year, the Shanghai Compos- Slowing economic growth and cording to Hao Hong, chief strate- ticed by investors again. BNP Paribas will be following debt according to Bloomberg- ite Index plunged 12% in a little over two tighter liquidity tend to benefit Chi- gist at Bocom International Holdings After their risks are cleared, the mar- South Korea’s Shinhan Bank and compiled data, is open to selling weeks. nese companies that are dominant in Co in Hong Kong. Before the rout, ket will be healthier and the foundation France’s BPCE in selling bonds new notes this year. “Investors’ strategies have turned the their industries. the outstanding margin balance had of a bull market stronger.”

Japan’s retail investors want foreigners to spur market rally Japan may not dominate Olympics, but

Bloomberg month low last week, attracting retail Tokyo investors who have traditionally used in exchange-traded funds it takes gold a contrarian approach, according to Hisao Matsuura, a strategist with Japanese retail investors bought Nomura Securities Co in Tokyo. Retail Bloomberg on exiting its debt bailout programme domestic stocks for a fourth investors tend to buy on dips and New York in August, Jacobs said. GREK is heavily consecutive week, stoking hope that sell on rallies after having suff ered exposed to fi nancials, with over 30% of foreign buyers will join them in helping heavy losses during the lost decades the fund’s holdings in banks. the market make a full recovery from a following the asset-bubble burst of the t may not be an Olympic event, “Investors of single country funds rout that started last month. early 1990s, Mitsubishi UFJ Morgan but when it comes to attracting tend to be more tactical,” Global X’s Individual investors last week added Stanley’s Fujito said. The Nikkei 225 Icash from investors in exchange- Jacobs said. “There are investors that to their record net purchases of the gained 0.7% on Friday, capping a traded funds, Japan and China are chase performance, but there are also nation’s stocks, yet foreigners were net second weekly advance. taking home the medals. buyers that chase event-driven be- sellers for a sixth straight week. “Individual investors’ buying could be Buyers have poured almost $800mn haviour. An ETF is just a convenient Overseas players – who generated temporary,” Nomura’s Matsuura said. into US-listed ETFs tracking inter- vehicle for people to express opinions 68% of the market’s equity trading “If stocks rise considerably, then they national equities this year through on those themes.” value last month – have to start buying may become sellers. Their contrarian February 20, according to Bloomberg But just like the Olympics, not eve- more if Japan’s equity benchmark is strategy is unlikely to change anytime data. That’s a 4.3% jump in the strate- ryone can be a winner. Funds tracking to rebound from its 10% correction, soon.” gies’ market capitalisation, compared companies in Mexico have been los- analysts said. Foreigners may start buying Japanese to a 0.3% rise in the market cap of ing cash as the country’s involvement “The market won’t resume its rising stocks when US Treasury yields stop funds tracking domestic equities. with politics – at home and abroad trend unless foreign buyers come rising, Mitsubishi UFJ Morgan Stanley’s The trend is even more pronounced – have made cautious investors take back,” said Norihiro Fujito, a senior Fujito said. in fi xed-income. ETFs tracking inter- a step back. strategist at Mitsubishi UFJ Morgan They sold a net ¥36.2bn of Japanese national bonds have seen their mar- The iShares MSCI Mexico ETF Stanley Securities Co in Tokyo. “Buying shares in the week ended on February ket cap grow by almost 8% this year, by its ticker EWJ, has taken in more peers, he said. Brazil and South Africa (ticker EWW) has seen the largest by Japan’s individual investors can 16, following ¥644.6bn of selling in the while funds tracking US bonds have than $3bn this year – that’s already are two markets where economic re- outfl ows so far in February than any work as a shock absorber for the previous week, the biggest reduction increased just 0.8%, the data show. fi ve times more than what investors forms are not fully priced in, there is full month since May 2017, data com- market as it reduces the downside since March 2016. Whether your attention has been put in all of last year. Similarly, buy- accelerating GDP growth, strong ex- piled by Bloomberg show. More than risks.” Ten-year Treasury yields reached 2.95% partially diverted by international ers have poured about $405mn into pected earnings growth, and signifi - $140mn has been withdrawn from Japan’s individual investors bought on Wednesday, their highest level since sport or not, it’s hard not to have the iShares MSCI China ETF (ticker cant potential for political catalysts, the fund as investors head into more ¥85.1bn ($795mn) more shares than January 2014. noticed the recent stock swoon. And MCHI) this year, compared to out- according to Yadava. diversifi ed strategies amid concern they sold in trading at the Tokyo and “It may take some more time until amid US equity volatility, investors fl ows of more than $250mn last year. The strongest investor interest surrounding the nation’s upcoming Nagoya securities exchanges in the foreign investors return to the have paid special attention to single “The performance, valuations and for Global X country strategies has presidential elections, said Mohit week ended February 16, according to Japanese stock market as buyers,” country plays abroad. earnings growth in these markets is been in a fund tracking Greek equi- Bajaj, director of exchange-traded data released Thursday. Fujito said. “Volatility starts to put money in hard to ignore, and it’s increasingly ties, Jacobs said. The Global X MSCI funds at WallachBeth Capital. That came after a record net buying “If Treasury yields break above 3%, it motion as people look for more oppor- harder for investors to justify a posi- Greece ETF (ticker GREK) is the only “Investors of single country funds of ¥745.8bn in the week ended on may spur a risk-off mode in the global tunities, for the next big idea,” said Jay tion that isn’t overweight to Japan and US-listed fund with exposure to the tend to be more tactical,” Global X’s February 9, an amount that exceeded markets and foreigners probably Jacobs, director of research for Glo- China,” said Tushar Yadava, iShares country, seeing almost $55mn in in- Jacobs said. “There are investors that purchases in 1987 during the week of won’t buy Japanese stocks. On the bal X Management Co. “The recent investment strategist at BlackRock. fl ows this year. chase performance, but there are also Black Monday. other hand, if yields stabilise in a volume spike could introduce more That’s not all. Investors may also Investors are bullish as Greece has fi - buyers that chase event-driven be- A global equity meltdown sent the range between 2.7 and 2.8%, they movement of capital and the direction want to consider areas of the world nally put together a few quarters of eco- haviour. An ETF is just a convenient Nikkei 225 Stock Average to a four- may come back.” we’ve seen is more internationally.” with ongoing reform momentum, as nomic growth, is starting to bring down vehicle for people to express opinions The iShares MSCI Japan ETF, known those countries tend to outperform its unemployment rate, and is planning on those themes.” Gulf Times 6 Monday, February 26, 2018 BUSINESS

As Brexit tensions rise, EU’s other big spat edges towards truce

Bloomberg the unanimity needed for the politi- is a vital buff er between the west and judicial overhaul, which paved the way members are graded on the strength of the notion of tying European regional Brussels cal sanction of suspending Poland’s Russian-infl uenced east and, more for more politically-appointed judges. their democratic institutions, but ex- funding after 2020 to the rule of law. voting rights. For the governing Law crucially for the European project, the “We are currently in a constructive isting ones have no such checks. The The plan picked up support in Paris & Justice party, the fi nancial threat re- biggest symbol of successful post- dialogue with the Polish government,” commission lacks the enforcement and other national capitals. Danish oland may be digging in over a sulting from EU budget talks means it Cold War integration. Juncker said in mid-January days after tools in judicial aff airs it has in such ar- Prime Minister Lars Lokke Rasmus- Holocaust law that’s alarmed can no longer disregard Brussels with- “I don’t think there’s much appe- meeting Morawiecki. On Friday, he said eas as competition and the single mar- sen said this week it’s “obvious that we Pthe US and angered Israel, but a out expecting consequences. tite on core Europe’s side to make a big before a summit on the EU budget that ket, heightening the role of backroom need some kind of conditionality.” longer-running battle with its Europe- “We are going to convince Brussels fi ght with Poland,” said Naz Masraff , it was “a confl ict between the commis- diplomacy. The commission said it would seek an Union allies might be about to reach about how much better, transparent the London-based director for Europe sion and the Polish government and we Morawiecki, a western-educated to strengthen the eligibility conditions some sort of truce. and independent the judicial system at consultants Eurasia. “What is criti- will resolve that problem.” former banker, marks a change in style for regional aid when proposing the A power grab of the courts by the will become,” Polish Prime Minister cal is what kind of an eff ect the confl ict Diplomats and offi cials said the for Poland’s Law & Justice govern- EU’s spending framework for 2021- nationalist government in Warsaw Mateusz Morawiecki said in an inter- will have on the budget negotiations.” two sides are likely to reach a deal to ment, whose stated policy has been to 2027. Many EU governments, though, sparked two threats by the EU in recent view at his offi ce in Warsaw on Feb- Morawiecki, who took offi ce in De- deescalate their row, though the off er pull the country out of the European have doubts about how to make such months against Poland: losing its vot- ruary 21. “This will be done through cember days before the European from Warsaw won’t be enough to end mainstream. The question is whether a provision legal and political worries ing rights in the bloc and missing out facts.” Commission recommended a move it. Eurasia’s Masraff expects the EU the message has changed. that it could end up provoking an anti- on generous European development What to do about the east and the toward suspending Poland’s voting to give Poland more time while keep- The controversy over the Holocaust EU backlash in some countries. funds. risk of a systematic threat to the rule rights, has spearheaded a charm of- ing the pressure on with the threat of law exposed a rising tide of anti-Polish As for Poland, one leader in the re- Both sides are now weighing the of law has overtaken Britain’s pending fensive in Brussels. He said his country suspending the country’s voting rights sentiment, he said last week. The leg- gion said he expected the standoff to be risks of further escalation, according departure as the biggest test of unity is making ground in repairing its rela- under Article 7 of the EU treaty. islation seeks to criminalise suggest- resolved and there was no need to link to diplomats and offi cials. That will for the EU. Unlike political bedfellows tionship with Brussels, especially over “In a way, it will fi zzle out gradually,” ing that the nation played a role in the funding to upholding the democratic set the tone for a February 27 meeting Hungary and the Czech Republic, Po- its overhaul of the judiciary. Masraff said. “But once the budget ne- Nazi genocide. It was a culmination of rule of law. “I think that the Polish in Brussels at which EU ministers will land is too big to fail. The commission’s president, Jean- gotiations start, it may be used again Polish policies that have antagonised prime minister negotiated with Junck- discuss the standoff . It’s the biggest net recipient of the Claude Juncker, set a March 20 dead- to isolate Poland and limit its ability to western countries. er,” said Czech Prime Minister Andrej For the country’s sharpest critics bloc’s aid and after Brexit will be the line for the Polish government to heed fi ght for its own priorities.” Germany, the biggest net contribu- Babis. “Probably they will convince the in the EU, the reality is that they lack EU’s fi fth-largest nation. The country recommendations on scaling back the The issue for the EU is that aspirant tor to the EU budget, has championed commission that everything is okay.”

BoE’s Ramsden sees case to raise Bond traders step back rates sooner than he thought

Reuters from 3% to watch Powell London The Bank of England might need to raise British inter- est rates somewhat sooner than deputy governor Dave Ramsden had expected if wage growth picks up early this year, according to a newspaper interview released on Saturday. Ramsden was one of two policymakers who op- navigate ‘Fedspeak’ posed the BoE’s decision in November to raise interest rates for the first time in a decade, but appears to have Bloomberg quickly so far this year that some shifted his stance somewhat in comments published New York analysts are already reviewing their by the Sunday Times newspaper. projections for the year. Bank of Earlier this month the central bank said interest America Corp last week raised its rates might need to rise somewhat sooner and by ond traders came the closest 10-year US yield forecast for year- somewhat more over the next three years than poli- in four years to a 3% yield on end to 3.25%, from 2.9%. Goldman cymakers had expected in November, due to a strong Bthe 10-year Treasury note. Sachs Group boosted its estimate global economy and signs wages are rising faster. Whether it breaches that level may for the end of 2018 to the same “We all will keep a close eye on what happens be determined by how new Federal level. through the early part of this year to see if that Reserve chairman Jerome Powell Goldman Sachs Chief Econo- (BoE) forecast of wage growth picking up to 3% is handles the limelight. mist Jan Hatzius suggested the Fed realised,” Ramsden was quoted as saying by the Powell, who took over from could pick up the pace of tighten- Sunday Times. Janet Yellen this month, will speak ing if infl ation reaches policy mak- “But certainly relative to where I was, I see the before the House Financial Serv- ers’ target and the unemployment case for rates rising somewhat sooner rather than ices Committee tomorrow and the rate grinds lower. somewhat later.” Economists polled by Reuters Senate Banking Committee two Five rate increases this year is a expect the BoE to raise interest rates to 0.75% from days later, in what’s known as the “low probability,” but the bank sees 0.5% by May, and financial markets price in a high Humphrey-Hawkins testimony. four in 2018 and another four in chance of a further rate rise to 1% before the end It’ll be the fi rst time since Powell 2019. As of now, Fed policy makers of 2018. was sworn in that bond traders get only anticipate moving three times The BoE’s chief economist, Andy Haldane, told law- a chance to parse every word from this year and two to three times makers on Wednesday that he thought interest rates the new Fed leader, as they did with next year. might need to rise slightly faster even than the central his predecessors. If Powell hints that he and the bank had expected when it set out fresh economic Now, a fair amount is scripted Federal Open Market Committee forecasts early in the month. – the Fed released its Monetary are moving towards a more hawk- However, governor Mark Carney said at the same Policy Report on February 23 – and ish path, it would be a “bearish event that future monetary policy decisions would de- as a former member of the central shock” that would roil fi ve-year pend heavily on how businesses and consumers react bank’s board of governors, Powell Treasury notes in particular, ac- to ongoing talks on the terms of Britain’s departure has had years to hone the craft of cording to BMO. from the European Union in March 2019. Fedspeak that’s largely kept vola- “He has to be really careful about Britain’s economy underperformed other major ad- tility at bay. He has also long been Powell: Moving towards a more hawkish path? over-hiking late in the cycle here vanced economies last year, due to a hit to consumer viewed by some as Yellen 2.0. TD as the enthusiasm continues to go demand from higher inflation triggered by the pound’s Securities strategists “expect mism when in the Congressional Bay Asset Management, said in an and re-balancing may have con- up,” said Michael Collins, senior fall after the Brexit vote, as well as comparatively weak nothing new,” while the BMO Cap- hot seat. interview on Bloomberg Television. tributed to the market’s rebound in investment offi cer at PGIM Fixed business investment. ital Markets simply says “yawn.” “He’s going to try to emphasise Some strategists are already the latter part of last week, which Income, which oversees more than The unemployment rate also rose slightly in the But with an economy that the continuity, gradualism, but I think bracing for a more aggressive Fed sent the 10-year yield to 2.87%. $700bn. final quarter of 2017, though at 4.4% it remains near a Fed says may already be beyond it’s going to be hard for him not to and for further bond-market losses It reached a four-year high of Bond traders know Yellen was 42-year low. Ramsden told the Confederation of British full employment, infl ation show- sound a little bit hawkish, given the ahead, even though the benchmark 2.9537% on Wednesday after the painstakingly measured in her Industry on Friday that the economy could not grow ing signs of life, and fi scal stimulus backdrop both in terms of infl ation 10-year Treasury yield fell on a Fed released minutes of its most words. They’ll soon fi nd out just faster than 1.5% a year without starting to add to infla- on top of that, it may be a struggle and in terms of growth,” David Ri- weekly basis for the fi rst time all recent policy meeting. how much continuity Powell brings tion pressures. for Powell to tamp down the opti- ley, head of credit strategy at Blue- year. One-time month-end fl ows Treasury yields have climbed so in live testimony.

SPOTLIGHT ON COMMODITIES Oil prices boosted by ‘triple dose’ of bullish EIA news

By Ole Hansen trust among world powers. extreme cold across the Northern One concern that has started to receive outlook with the recent weakness only It highlighted multiple geopolitical hemisphere impacted a variety of food some attention is the actual usefulness triggering a minor reduction in what a risks ranging from US versus Russia, commodities from soybeans to wheat of shale oil given its super light quality month ago was a record bullish bets on Commodities traded flat on the week The West versus North Korea, Europe and cocoa. which is limiting the use for refiners. crude oil and products. with the Bloomberg Commodity Index versus Turkey, and Middle East Additional support has come from the All of the current growth in US April WTI surged higher to reach showing gains in energy being off set situation. weaker dollar, strong demand, and oil production comes from wells resistance at $63.15, the 61.8% by losses across both industrial and Other threats being discussed and rising energy prices as well as short producing very light crude oil which retracement of the January-February precious metals. The agriculture sector worried about were cyber threats covering from hedge funds who have during the refinery process yields less selloff. A break above would signal traded flat following a month of strong and not least the rise in global trade been reducing a record grain short middle distillates such as diesel and jet that a short-term low has been gains, particularly among key crops. tensions, especially between the US and back to neutral during the past four fuel, two major growth areas when it established with potential outside The latest weekly report from the US China. The US Commerce Department weeks. comes to future demand. drivers being movements in stocks Energy Information Administration recently released its recommendations The recent rally in key crops led by Over the past few decades, the US and the dollar. (EIA) delivered a triple dose of bullish for restricting imports of steel and soybeans due to lower output from refinery system has geared itself Gold prices are presently being reined news with WTI surging to resistance at aluminium. Argentina may now pause ahead of the towards processing heavier fuels from in by bond yields, the strong dollar, and $63.15/barrel. This followed a surprise The proposal, which now awaits a crucially important month of March. countries like Venezuela, Canada, and the hawkish FOMC. counter-seasonal drop in stocks driven response and approval from President This is when the size of the Latin the Middle East. The US is therefore We, however, maintain a positive by surging exports while production Trump, could potentially slap punitive American harvest will become known increasingly in need of foreign buyers outlook in the belief that inflation and was flat following a recent jump. tariff s on imports from five major weakness was driven by a recovering while the US planting season begins, for its light crude, hence the current rise geopolitical concerns – of which there Gold, meanwhile, endured its worst suppliers including China and Russia. dollar, increased expectations for and with that news about what and how in exports. are currently plenty – together with the week since early December on the From a global perspective, the impact further FOMC rate hikes, and China’s much US farmers intend to plant. The latest weekly report from the US potential risk that another stock market back of a stronger USD, a hawkish is likely to be limited with the biggest quest to deleverage in order to achieve During the past week, oil and gas Energy Information Administration setback and weaker-than-expected Federal Open Market Committee, and being the risk of tit-or-tat retaliation on a more sustainable growth trajectory. operators as well as traders and delivered a triple dose of bullish news economic data will continue to attract the US 10-year government bond yield US imports, not only from China but While investors await an expected post- ministers descended on London for with WTI surging to resistance at $63.15/ demand from investors seeking tail-end approaching 3% – a level not been seen also from other countries singled out by holiday pick-up in Chinese demand, the the biggest annual gathering of oil barrel. protection. since it was rejected back in December the proposal. downside risk for now seems limited executives at the IP Week. This following a surprise and counter- Gold is testing trendline support 2013. The stock prices of US steel and with HG Copper currently trading within While the consensus was for higher seasonal drop in stocks driven by from the December low with a break The fifth consecutive failure (since aluminium producers are likely to a $3 to $3.3/lb range. prices due the successful and ongoing surging exports while production was signalling further losses towards 2014) in breaking higher has also receive a boost while US manufacturers Overall the agriculture sector led production cuts from Opec and friends, flat following the recent jump. $1,300/oz, a key technical and helped raised short-term concerns making products from the two metals by grains seems to have woken up some uncertainty with regard to This brought the price of WTI crude psychological area of support. Above about a deeper correction. could suff er a competitive disadvantage from a multi-year snooze with record surging non-Opec production was also oil to the 61.8% retracement of the the multi-year line of resistance The motto of this year’s annual Munich given the impact of higher prices high stock levels increasingly being seen. January-February selloff . currently at $1365/oz sits a key barrier Security Conference, held last week, for domestically produced steel and challenged by an uncertain production This was highlighted by the A break through this level would be a that stands in the way of a potential was “To the Brink – and Back”. All aluminium. outlook. International Energy Agency which is strong indication of the market having major upside extension. indications unfortunately pointed Industrial metals in general traded During the past month, a rising weather forecasting that global demand growth established a bottom following the towards further conflicts as the lower as Chinese investors returned premium has emerged after extreme in 2018 and 2019 can be met by rising recent correction. „ Ole Hansen is head of commodity conference laid bare the major lack of from their New Year holiday. The heat in the Southern Hemisphere and non-Opec production. Overall, traders maintain a bullish strategy at Saxo Bank. Gulf Times Monday, February 26, 2018 7 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Saudi Re For Cooperative Rei 9.48 0.21 656,927 Boubyan Intl Industries Hold 34.00 0.00 80,015 Dhofar Beverages Co 0.26 0.00 - Solidarity Saudi Takaful Co 22.80 1.15 1,120,691 Gulf Investment House Ksc 0.00 0.00 - Construction Materials Ind 0.03 -16.67 82,000 Amana Cooperative Insurance 21.74 9.47 2,042,095 Boubyan Bank K.S.C 477.00 -0.63 115,945 Computer Stationery Inds 0.26 0.00 - Alabdullatif Industrial Inv 12.78 -0.08 193,987 Ahli United Bank B.S.C 212.00 0.95 7,161,278 Bankmuscat Saog 0.40 0.00 86,792 Saudi Printing & Packaging C 19.35 -0.15 686,820 Osos Holding Group Co 101.00 -0.98 61,983 Bank Sohar 0.16 0.00 - Sanad Cooperative Insurance 0.00 0.00 - Al-Eid Food Ksc 0.00 0.00 - Bank Nizwa 0.09 0.00 191,215 Saudi Paper Manufacturing Co 8.00 0.38 287,942 Qurain Petrochemical Industr 340.00 0.00 109,213 Bank Dhofar Saog 0.21 1.94 23,267 Alinma Bank 19.99 -0.35 18,522,950 Advanced Technology Co 0.00 0.00 - Areej Vegetable Oils Saoc 0.00 0.00 - Almarai Co 50.86 -0.57 251,740 Ekttitab Holding Co Sak 29.00 1.75 268,304 Aloula Co 0.53 0.00 - Falcom Saudi Equity Etf 29.00 0.35 232,739 Kout Food Group Ksc 0.00 0.00 - Al-Omaniya Financial Service 0.28 0.00 - QATAR United International Transpo 30.55 -0.26 96,375 Real Estate Trade Centers Co 33.50 0.00 5,001 Al-Hassan Engineering Co 0.03 0.00 - Hsbc Amanah Saudi 20 Etf 30.80 0.00 - Acico Industries Co Kscc 250.00 0.00 4,000 Al-Fajar Al-Alamia Co 0.75 0.00 - Company Name Lt Price % Chg Volume Saudi International Petroche 18.80 0.48 1,062,050 Kipco Asset Management Co 69.00 -1.29 24,841 Al-Anwar Ceramic Tiles Co 0.13 -1.54 6,405 Falcom Petrochemical Etf 28.40 0.00 - National Petroleum Services 810.00 0.00 3,600 Al Suwadi Power 0.14 0.00 - Zad Holding Co 78.50 0.00 450 Walaa Cooperative Insurance 33.92 -0.26 127,764 Alimtiaz Investment Co Kscc 143.00 0.70 3,301,952 Al Shurooq Inv Ser 0.00 0.00 - Widam Food Co 63.95 -2.22 52,453 Bank Al-Jazira 12.62 -0.39 1,812,898 Ras Al Khaimah White Cement 80.00 -2.44 118,691 Al Sharqiya Invest Holding 0.11 -2.61 436,604 Vodafone Qatar 7.38 0.14 103,408 Al Rajhi Bank 74.38 -0.55 1,946,463 Kuwait Reinsurance Co Ksc 0.00 0.00 - Al Maha Petroleum Products M 1.00 0.00 - United Development Co 16.65 0.00 821,556 Samba Financial Group 25.39 -1.32 523,584 Kuwait & Gulf Link Transport 94.00 2.62 552,620 Al Maha Ceramics Co Saoc 0.29 0.00 - Salam International Investme 6.04 0.00 23,353 United Electronics Co 56.27 -3.33 247,283 Human Soft Holding Co Ksc 3,850.00 6.97 247,961 Al Madina Takaful Co Saoc 0.09 -1.09 309,500 Qatar & Oman Investment Co 8.00 0.00 - Allied Cooperative Insurance 17.94 -0.28 54,938 Automated Systems Co Kscc 169.00 0.00 6,000 Al Madina Investment Co 0.06 -3.51 179,718 Qatar Navigation 63.50 -0.78 43,802 Malath Insurance 17.70 2.25 470,865 Metal & Recycling Co 64.00 0.00 7,053 Al Kamil Power Co 0.31 0.00 - Qatar National Cement Co 68.40 -0.87 77,575 Alinma Tokio Marine 23.88 -0.13 65,139 Gulf Franchising Holding Co 64.00 0.00 57,780 Al Jazerah Services -Pfd 0.55 0.00 - Qatar National Bank 126.99 -0.01 36,142 Arabian Shield Cooperative 48.53 0.58 133,443 Al-Enma’a Real Estate Co 34.40 5.20 190,067 Al Jazeera Steel Products Co 0.32 0.00 - Qatar Islamic Insurance 57.79 1.42 97,430 Savola 36.90 -0.97 145,911 National Mobile Telecommuni 1,027.00 -0.29 1,873 Al Jazeera Services 0.17 1.18 750,415 Qatar Industrial Manufactur 44.55 0.97 2,029 Wafrah For Industry And Deve 19.68 1.76 309,201 Al Bareeq Holding Co Kscc 0.00 0.00 - Al Izz Islamic Bank 0.07 0.00 89,300 Qatar International Islamic 60.00 -0.74 132,450 Fitaihi Holding Group 11.92 -0.17 175,301 Housing Finance Co Sak 0.00 0.00 - Al Buraimi Hotel 0.88 0.00 - Qatari Investors Group 32.80 1.30 359,062 Tourism Enterprise Co/ Shams 33.87 1.53 379,351 Al Salam Group Holding Co 38.40 1.05 10,100 Al Batinah Power 0.14 0.00 - Qatar Islamic Bank 98.40 -1.11 18,383 Sahara Petrochemical Co 16.18 -0.55 1,579,356 United Foodstuff Industries 0.00 0.00 - Al Batinah Hotels 1.13 0.00 - Qatar Gas Transport(Nakilat) 17.76 -0.11 74,775 Herfy Food Services Co 46.20 -0.22 68,373 Al Aman Investment Company 54.00 0.00 97,306 Al Batinah Dev & Inv 0.08 -4.71 43,000 Qatar General Insurance & Re 47.00 3.75 300 Mashaer Holding Co Ksc 61.00 0.00 9,879 Al Anwar Holdings Saog 0.15 -1.29 445,750 Qatar German Co For Medical 6.05 1.00 14,962 Manazel Holding 27.40 1.48 71,500 Ahli Bank 0.16 0.00 - Qatar Fuel Qsc 116.20 0.17 6,817 Mushrif Trading & Contractin 0.00 0.00 - Acwa Power Barka Saog 0.76 0.00 - Qatar First Bank 6.69 -0.15 837,001 KUWAIT Tijara And Real Estate Inves 64.00 0.00 5,929 Abrasives Manufacturing Co S 0.05 0.00 - Qatar Electricity & Water Co 188.90 1.78 25,507 Kuwait Building Materials 0.00 0.00 - A’saff a Foods Saog 0.58 0.00 - Qatar Cinema & Film Distrib 22.66 0.00 - Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 600.00 0.17 58,758 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Insurance Co 50.65 1.34 57,037 Commercial Real Estate Co 92.00 0.00 133,092 Ooredoo Qpsc 88.60 0.68 20,784 Securities Group Co 0.00 0.00 - Future Communications Co 0.00 0.00 - National Leasing 10.90 0.83 42,411 Sultan Center Food Products 0.00 0.00 - National International Co 58.10 0.00 10,650 Mazaya Qatar Real Estate Dev 7.91 -1.13 74,967 Kuwait Foundry Co Sak 228.00 -0.87 220 Taameer Real Estate Invest C 29.50 2.79 85,830 UAE Mesaieed Petrochemical Holdi 14.45 -1.03 41,077 Kuwait Financial Centre Sak 110.00 0.00 349,980 Gulf Cement Co 80.00 -4.31 20,000 Al Meera Consumer Goods Co 152.50 -1.61 15,405 Ajial Real Estate Entmt 141.00 -11.32 16 Heavy Engineering And Ship B 201.00 -0.50 51,825 Company Name Lt Price % Chg Volume Medicare Group 78.51 -0.62 6,696 Gulf Glass Manuf Co -Kscc 0.00 0.00 - Refrigeration Industries & S 0.00 0.00 - Mannai Corporation Qsc 62.00 0.00 4,442 Kuwait Finance & Investment 45.40 0.00 1,000 National Real Estate Co 115.00 -4.17 311,882 Waha Capital Pjsc 2.11 -0.94 73,837 Masraf Al Rayan 41.29 -0.48 104,217 National Industries Co Ksc 197.00 0.00 1,348 Al Safat Energy Holding Comp 30.70 -13.76 156,550 United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 13.25 1.38 88,274 Kuwait Real Estate Holding C 29.90 -0.33 11,600 Kuwait National Cinema Co 1,095.00 -0.36 1,002 United Arab Bank Pjsc 1.58 0.00 - Industries Qatar 108.60 -0.06 54,670 Securities House/The 50.90 0.99 192,600 Danah Alsafat Foodstuff Co 73.30 0.41 481,292 Union National Bank/Abu Dhab 3.92 0.26 2,650 Islamic Holding Group 30.50 0.00 8,661 Boubyan Petrochemicals Co 706.00 0.86 10,000 Independent Petroleum Group 450.00 0.00 2,560 Union Insurance Co 1.79 0.00 - Investment Holding Group 6.20 -1.12 64,352 Al Ahli Bank Of Kuwait 306.00 -1.29 20,000 Kuwait Real Estate Co Ksc 55.00 0.36 1,004,798 Union Cement Co 1.37 0.00 - Gulf Warehousing Company 40.50 1.25 15,606 Ahli United Bank (Almutahed) 340.00 -1.16 146,812 Salhia Real Estate Co Ksc 342.00 0.29 160,000 Umm Al Qaiwain Cement Indust 1.05 0.00 - Gulf International Services 18.13 1.28 201,673 National Bank Of Kuwait 760.00 0.00 669,371 Gulf Cable & Electrical Ind 420.00 0.00 25,100 Sharjah Islamic Bank 1.29 0.00 - Ezdan Holding Group 9.74 -2.50 72,272 Commercial Bank Of Kuwait 450.00 3.45 53,881 Al Nawadi Holding Co Ksc 0.00 0.00 - Sharjah Insurance Company 3.49 0.00 - Doha Insurance Co 13.90 -1.14 20,000 Kuwait International Bank 235.00 0.86 156,125 Kuwait Finance House 590.00 0.17 4,425,508 Sharjah Group 1.15 0.00 - Doha Bank Qpsc 34.11 0.15 61,078 Gulf Bank 253.00 1.61 4,968,111 Gulf North Africa Holding Co 37.20 -0.53 998,490 Sharjah Cement & Indus Devel 1.13 0.00 - Dlala Holding 13.60 -0.51 8,683 Al-Massaleh Real Estate Co 39.90 0.00 94,091 Hilal Cement Co 110.00 0.00 5,000 Ras Al-Khaimah National Insu 3.68 0.00 - Commercial Bank Pqsc 30.13 -3.12 75,402 Al Arabiya Real Estate Co 34.50 -0.86 122,081 Osoul Investment Kscc 50.00 0.00 195,755 Ras Al Khaimah White Cement 1.02 0.00 - Barwa Real Estate Co 38.15 0.39 284,585 Kuwait Remal Real Estate Co 38.50 -0.77 45,100 Gulf Insurance Group Ksc 695.00 0.00 1,100 Ras Al Khaimah Ceramics 3.07 -1.92 148,100 Al Khaleej Takaful Group 12.33 -0.88 2,050 Alkout Industrial Projects C 680.00 0.00 10,000 Kuwait Food Co (Americana) 1,004.00 0.10 323 Ras Al Khaimah Cement Co Psc 0.69 0.00 - Aamal Co 8.88 0.11 85,787 A’ayan Real Estate Co Sak 77.50 3.33 100,050 Umm Al Qaiwain Cement Indust 0.00 0.00 - Ras Al Khaima Poultry 3.10 0.00 - Investors Holding Group Co.K 15.90 -0.63 2,814,410 Aayan Leasing & Investment 33.70 0.30 668,981 Rak Properties 0.79 1.28 4,505,352 Al-Mazaya Holding Co 110.00 0.92 349,432 Alrai Media Group Co Ksc 121.00 1.68 330,000 Ooredoo Qpsc 99.00 0.00 - SAUDI ARABIA Al-Madar Finance & Invt Co 26.00 0.00 30,000 National Investments Co 96.00 -1.03 188,500 Oman & Emirates Inv(Emir)50% 0.51 0.00 - Gulf Petroleum Investment 28.90 -3.02 457,922 Commercial Facilities Co 181.00 -0.55 219,700 Nbad Oneshare Msci Uae Ucits 6.20 0.00 - National Takaful Company 0.00 Company Name Lt Price % Chg Volume Mabanee Co Sakc 733.00 0.00 45,001 Taiba Kuwaiti Holding Co Ksc 0.00 0.00 - 0.51 - City Group 0.00 0.00 - Afaq Educational Services Co 0.00 0.00 - National Marine Dredging Co 3.25 0.00 - United Wire Factories Compan 15.76 1.09 246,670 Inovest Co Bsc 74.40 -0.40 126,400 Kuwait Pillars For Financial 0.00 0.00 - National Investor Co/The 0.51 0.00 - Etihad Etisalat Co 14.45 -0.41 1,090,096 Kuwait Gypsum Manufacturing 0.00 0.00 - Yiaco Medical Co. K.S.C.C 125.00 0.00 1,025 National Corp Tourism & Hote 2.08 0.00 - Dar Al Arkan Real Estate Dev 9.98 0.00 57,165,752 Al-Deera Holding Co 24.00 1.27 100 Dulaqan Real Estate Co 0.00 0.00 - National Bank Of Umm Al Qaiw 2.99 0.00 - Saudi Hollandi Bank 0.00 0.00 - Alshamel International Hold 0.00 0.00 - National Bank Of Ras Al-Khai 4.75 0.00 - Rabigh Refining And Petroche 23.65 0.42 2,498,044 Mena Real Estate Co 32.00 -3.03 230,780 National Bank Of Fujairah 3.30 0.00 - Banque Saudi Fransi 30.76 0.13 202,761 National Slaughter House 0.00 0.00 - First Abu Dhabi Bank Pjsc 0.00 0.00 - Saudi Enaya Cooperative Insu 17.62 2.20 281,041 Amar Finance & Leasing Co 52.00 -1.89 500 OMAN Methaq Takaful Insurance 0.82 -2.38 32,000 Manazel Real Estate Pjsc 0.57 0.00 4,360,019 Mediterranean & Gulf Insuran 22.99 1.05 169,354 United Projects For Aviation 560.00 0.00 13,030 Company Name Lt Price % Chg Volume Saudi British Bank 28.60 -1.07 51,119 National Consumer Holding Co 60.00 0.00 11,750 Invest Bank 2.48 0.00 - Mohammad Al Mojil Group Co 0.00 0.00 - Amwal International Investme 53.90 -0.19 69,870 Voltamp Energy Saog 0.49 0.00 27,913 Intl Fish Farming Co Pjsc 1.43 0.00 100,600 Red Sea International Co 18.37 0.33 99,118 Jeeran Holdings 0.00 0.00 - United Power/Energy Co- Pref 1.00 0.00 - Insurance House 0.89 0.00 - Takween Advanced Industries 9.29 1.75 317,194 Equipment Holding Co K.S.C.C 36.90 -0.27 600 United Power Co Saog 4.30 0.00 - Gulf Pharmaceutical Ind Psc 2.10 -3.67 17,751 Sabb Takaful 22.85 0.44 160,022 Nafais Holding 880.00 0.00 1 United Finance Co 0.13 0.00 - Gulf Medical Projects 2.03 0.00 - Saudi Arabian Fertilizer Co 67.08 0.13 68,887 Safwan Trading & Contracting 0.00 0.00 - Ubar Hotels & Resorts 0.13 0.00 - Gulf Cement Co 1.00 0.00 - National Gypsum 12.16 0.83 60,336 Arkan Al Kuwait Real Estate 87.00 -1.36 65,000 Takaful Oman 0.16 0.00 - Fujairah Cement Industries 0.95 0.00 - Saudi Ceramic Co 25.00 -0.71 128,285 Gfh Financial Group Bsc 97.00 0.21 437,402 Taageer Finance 0.12 0.00 - Fujairah Building Industries 1.56 0.00 - National Gas & Industrializa 30.50 0.07 52,016 Energy House Holding Co Kscp 27.80 -0.71 700 Sweets Of Oman 1.34 0.00 - Foodco Holding Pjsc 4.94 0.00 - Saudi Pharmaceutical Industr 29.69 1.96 90,356 Kuwait Slaughter House Co 0.00 0.00 - Sohar Power Co 0.13 0.00 - First Gulf Bank 0.00 0.00 - Thimar 31.60 3.67 919,986 Kuwait Co For Process Plant 151.00 0.00 10,000 Sohar Poultry 0.21 0.00 - Finance House 1.72 0.00 - National Industrialization C 16.21 0.00 789,586 Al Maidan Dental Clinic Co K 0.00 0.00 - Smn Power Holding Saog 0.66 0.00 - Eshraq Properties Co Pjsc 0.74 2.78 4,246,217 Saudi Transport And Investme 0.00 0.00 - National Shooting Company 0.00 0.00 - Shell Oman Marketing - Pref 1.05 0.00 - Emirates Telecom Group Co 17.40 0.00 391,840 Saudi Electricity Co 20.47 0.10 544,405 Al-Themar Real International 0.00 0.00 - Shell Oman Marketing 1.74 0.00 - Emirates Insurance Co. (Psc) 7.50 0.00 - Saudi Arabia Refineries Co 36.98 4.55 4,124,836 Al-Ahleia Insurance Co Sakp 510.00 20.00 100 Sharqiyah Desalination Co Sa 3.96 0.00 - Emirates Driving Company 9.20 0.00 - Arriyadh Development Company 20.01 0.05 199,886 Wethaq Takaful Insurance Co 32.00 0.00 45,000 Sembcorp Salalah Power & Wat 0.22 0.00 - Dana Gas 0.75 2.74 3,224,114 Al-Baha Development & Invest 22.37 0.77 651,627 Salbookh Trading Co Kscp 51.00 4.08 205,500 Salalah Port Services 0.60 0.00 - Commercial Bank Internationa 0.94 0.00 - Saudi Research And Marketing 74.77 -0.11 161,572 Aqar Real Estate Investments 75.00 0.00 35,900 Salalah Mills Co 1.33 0.00 - Bank Of Sharjah 1.20 0.00 - Aldrees Petroleum And Transp 25.71 1.46 348,639 Hayat Communications 85.00 0.00 10,000 Salalah Beach Resort Saog 1.38 0.00 - Axa Green Crescent Insurance 0.88 0.00 - Saudi Vitrified Clay Pipe Co 56.00 4.26 74,396 Kuwait Packing Materials Mfg 0.00 0.00 - Sahara Hospitality 2.50 0.00 - Arkan Building Materials Co 0.75 1.35 82,500 Jarir Marketing Co 169.39 0.58 24,640 Soor Fuel Marketing Co Ksc 117.00 1.74 35,291 Renaissance Services Saog 0.31 0.00 - Alkhaleej Investment 2.00 0.00 - Arab National Bank 27.20 -2.61 252,772 Alargan International Real 160.00 0.00 30,000 Raysut Cement Co 0.80 0.00 500 Aldar Properties Pjsc 2.17 0.46 424,792 Yanbu National Petrochemical 67.73 1.35 208,749 Burgan Co For Well Drilling 64.90 0.00 88,888 Port Service Corporation 0.00 0.00 - Al Wathba National Insurance 12.75 0.00 - Arabian Cement 34.43 -1.54 242,171 Kuwait Resorts Co Kscc 70.90 0.00 80,000 Phoenix Power Co Saoc 0.14 0.00 271,407 Al Khazna Insurance Co 0.26 0.00 116,000 Middle East Specialized Cabl 7.98 0.76 357,735 Oula Fuel Marketing Co 118.00 2.61 8,842 Packaging Co Ltd 2.21 0.00 - Al Fujairah National Insuran 300.00 0.00 - Al Khaleej Training And Educ 19.40 0.00 48,461 Palms Agro Production Co 80.00 0.00 10,246 Ooredoo 0.52 0.00 372,461 Al Dhafra Insurance Co. P.S. 3.85 0.00 - Al Sagr Co-Operative Insuran 22.63 0.27 81,383 Ikarus Petroleum Industries 0.00 0.00 - Ominvest 0.41 0.00 6,000 Al Buhaira National Insuranc 2.20 0.00 - Trade Union Cooperative Insu 23.26 -1.02 140,693 Mubarrad Holding Co Ksc 72.40 -0.14 71,000 Oman United Insurance Co 0.38 0.00 - Al Ain Ahlia Ins. Co. 39.00 0.00 - Arabia Insurance Cooperative 18.12 -1.47 569,448 Al Mowasat Health Care Co 0.00 0.00 - Oman Textile Holding Co Saog 0.00 0.00 - Agthia Group Pjsc 4.35 -0.46 8,000 Saudi Chemical Company 32.40 1.57 123,357 Shuaiba Industrial Co 250.00 0.00 4,995 Oman Telecommunications Co 1.07 -3.62 237,441 Abu Dhabi Ship Building Co 2.25 0.00 - Fawaz Abdulaziz Alhokair & C 28.99 -0.41 314,656 Aan Digital Services Co 0.00 0.00 - Oman Refreshment Co 1.95 0.00 - Abu Dhabi Natl Co For Buildi 0.60 0.00 - Bupa Arabia For Cooperative 81.85 -1.71 219,137 First Takaful Insurance Co 61.00 6.09 25,200 Oman Packaging 0.28 0.00 2,920 Abu Dhabi National Takaful C 4.64 0.00 - Wafa Insurance 18.30 1.61 772,891 Kuwaiti Syrian Holding Co 28.60 -1.04 214,469 Oman Orix Leasing Co. 0.18 0.00 - Abu Dhabi National Insurance 3.85 0.00 100,000 Jabal Omar Development Co 54.74 -0.67 144,057 National Cleaning Company 60.00 0.00 181,631 Oman Oil Marketing Company 1.46 0.00 - Abu Dhabi National Hotels 2.82 0.00 - Saudi Basic Industries Corp 105.18 0.54 2,404,330 Eyas For High & Technical Ed 0.00 0.00 - Oman National Engineering An 0.19 0.00 20,000 Abu Dhabi National Energy Co 0.78 2.63 345,125 Saudi Kayan Petrochemical Co 12.73 0.39 6,090,143 United Real Estate Company 74.00 0.00 5,030 Oman Investment & Finance 0.13 -0.76 128,100 Abu Dhabi Islamic Bank 4.09 -0.49 573,779 Etihad Atheeb Telecommunicat 6.75 -1.17 384,904 Agility 841.00 -0.24 456,400 Oman Intl Marketing 0.52 0.00 - Co For Cooperative Insurance 72.85 -0.16 235,041 Kuwait & Middle East Fin Inv 28.30 -0.70 8,500 Oman Hotels & Tourism Co 0.00 0.00 - National Petrochemical Co 19.50 -0.51 180,930 Fujairah Cement Industries 71.00 0.00 9,655 Oman Foods International 0.00 0.00 - Gulf Union Cooperative Insur 18.14 0.28 107,173 Livestock Transport & Tradng 220.00 0.00 700 Oman Flour Mills 0.80 0.00 - BAHRAIN Gulf General Cooperative Ins 17.64 -0.45 201,977 International Resorts Co 26.10 -10.92 1 Oman Fisheries Co 0.13 -0.74 141,383 Basic Chemical Industries 21.14 -0.05 13,214 National Industries Grp Hold 160.00 0.00 144,531 Oman Fiber Optics 0.00 0.00 - Company Name Lt Price % Chg Volume Saudi Steel Pipe Co 0.13 Marine Services Co Ksc 0.00 Oman Europe Foods Industries 1.00 0.00 - 16.00 39,116 0.00 - Zain Bahrain Bscc 0.09 0.00 549,840 Buruj Cooperative Insurance -0.94 Warba Insurance Co -0.15 Oman Education & Training In 0.17 0.00 - 34.84 153,815 64.90 288 United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co -1.03 Kuwait United Poultry Co 0.00 Oman Chromite 3.64 0.00 - 179.40 9,125 0.00 - United Gulf Investment Corp 0.00 0.00 - Southern Province Cement Co 0.00 First Dubai Real Estate Deve 4.13 Oman Chlorine 0.44 0.00 - 49.95 8,047 47.90 918,667 United Gulf Bank 0.00 0.00 - Maadaniyah 1.18 Al Arabi Group Holding Co 4.00 Oman Ceramic Company 0.42 0.00 - 19.67 445,184 78.00 500 Trafco Group Bsc 0.32 1.25 50,000 Yamama Cement Co -0.97 Kuwait Hotels Sak 0.00 Oman Cement Co 0.39 -1.99 28,000 16.32 48,563 197.00 165 Takaful International Co 0.00 0.00 - Jazan Energy And Development 0.84 Mobile Telecommunications Co 0.22 Oman Cables Industry 1.13 0.00 - 17.91 174,732 455.00 1,203,927 Taib Bank -$Us 0.00 0.00 - Zamil Industrial Investment 0.12 Al Safat Real Estate Co 0.00 Oman Agricultural Dev 0.00 0.00 - 25.95 12,538 0.00 - Seef Properties 0.22 0.91 122,286 Alujain Corporation (Alco) 0.44 Tamdeen Real Estate Co Ksc 0.00 Oman & Emirates Inv(Om)50% 0.11 -5.41 214,500 20.53 190,494 399.00 423,550 Securities & Investment Co 0.00 0.00 - Tabuk Agricultural Developme 0.16 Al Mudon Intl Real Estate Co -0.26 Natl Aluminium Products 0.25 6.47 9,200 12.20 593,436 38.90 21,660 National Hotels Co 0.00 0.00 - United Co-Operative Assuranc 0.40 Kuwait Cement Co Ksc 0.00 National Securities 0.04 0.00 - 12.43 116,454 455.00 1,000 National Bank Of Bahrain Bsc 0.65 0.00 507,545 Qassim Cement/The -1.03 Sharjah Cement & Indus Devel -1.25 National Real Estate Develop 5.00 0.00 - 45.10 67,731 79.00 10,500 Nass Corp Bsc 0.12 -5.56 160,000 Saudi Advanced Industries 1.71 Kuwait Portland Cement Co 0.29 National Pharmaceutical 0.11 4.95 - 13.69 792,332 1,042.00 1,000 Khaleeji Commercial Bank 0.09 0.00 100,000 Kingdom Holding Co 0.33 Educational Holding Group 0.00 National Mineral Water 0.05 0.00 - 9.12 195,283 303.00 30,300 Ithmaar Holding Bsc 0.14 0.00 29,000 Saudi Arabian Amiantit Co 0.39 Bahrain Kuwait Insurance 0.00 National Hospitality Institu 0.00 0.00 - 7.76 526,524 0.00 - Investcorp Bank -$Us 9.40 0.00 5,000 Al Jouf Agriculture Developm -0.32 Asiya Capital Investments Co 3.61 National Gas Co 0.31 -1.29 15,270 31.15 57,621 43.00 186,829 Inovest Co Bsc 0.00 0.00 - Saudi Industrial Development 2.50 Kuwait Investment Co 0.00 National Finance Co 0.14 0.00 - 9.42 1,450,671 143.00 127,545 Gulf Monetary Group 0.00 0.00 - Bishah Agriculture 0.00 Burgan Bank 0.00 National Detergent Co Saog 0.65 0.00 - 0.00 - 294.00 109,363 Gulf Hotel Group B.S.C 0.55 0.00 19,748 Riyad Bank -0.30 Kuwait Projects Co Holdings 0.00 National Biscuit Industries 3.74 0.00 - 13.45 207,336 302.00 651,199 Gfh Financial Group Bsc 0.36 2.86 4,235,817 The National Agriculture Dev 1.03 Al Madina For Finance And In 4.18 National Bank Of Oman Saog 0.21 0.00 - 31.49 249,368 34.90 100 Esterad Investment Co B.S.C. 0.00 0.00 - Halwani Bros Co -0.90 Kuwait Insurance Co 2.11 Muscat Thread Mills Co 0.09 0.00 - 53.79 26,321 290.00 25 Delmon Poultry Co 0.00 0.00 - Arabian Pipes Co 0.82 Al Masaken Intl Real Estate 0.00 Muscat National Holding 0.00 0.00 - 12.24 559,521 79.00 30 Bmmi Bsc 0.76 0.00 15,700 Eastern Province Cement Co -1.01 Intl Financial Advisors 1.79 Muscat Gases Company Saog 0.55 0.00 - 25.40 21,857 28.50 19,910 Bmb Investment Bank 0.00 0.00 - Al Gassim Investment Holding 0.00 First Investment Co Kscc 0.26 Muscat Finance 0.11 0.00 - 0.00 - 39.00 452,560 Bbk Bsc 0.46 0.44 129,011 Filing & Packing Materials M 3.15 Al Mal In 2.09 Majan Glass Company 0.18 0.00 - 33.40 1,625,356 vestment Company 24.40 45,100 Bankmuscat Saog 0.00 0.00 - Saudi Cable Co 0.00 -0.71 Majan College 0.44 0.00 - 10.81 - Bayan Investment Co Kscc 42.10 20,400 Banader Hotels Co 0.00 0.00 - Tihama Advertising & Public 1.71 -0.67 Hsbc Bank Oman 0.11 0.92 15,000 46.37 946,525 Egypt Kuwait Holding Co Sae 295.00 50,000 Bahrain Tourism Co ` 0.00 - Saudi Investment Bank/The -1.00 3.17 Hotels Management Co Interna 1.25 0.00 - 15.82 53,117 Coast Investment Development 32.50 30,010 Bahrain Telecom Co 0.22 4.85 1,006,500 Astra Industrial Group 0.13 -0.92 Gulf Stone 0.12 0.00 - 15.53 62,570 Privatization Holding Compan 54.00 60,000 Bahrain Ship Repair & Engin 1.55 0.00 60 Saudi Public Transport Co -2.12 0.00 Gulf Plastic Industries Co 0.00 0.00 - 15.21 356,521 Kuwait Medical Services Co 0.00 - Bahrain National Holding 0.00 0.00 - Taiba Holding Co -0.70 0.00 Gulf Mushroom Company 0.31 0.00 - 31.31 240,308 Injazzat Real State Company 92.00 100 Bahrain Kuwait Insurance 0.00 0.00 - Saudi Industrial Export Co 9.98 -6.25 Gulf Investments Services 0.09 -1.15 343,983 266.60 776,475 Kuwait Cable Vision Sak 15.00 2 Bahrain Islamic Bank 0.14 0.00 40,000 Saudi Real Estate Co -0.59 0.00 Gulf Invest. Serv. Pref-Shar 0.11 0.00 - 21.88 36,480 Sanam Real Estate Co Kscc 33.00 5,981 Bahrain Flour Mills Co 0.38 0.00 2,887 Saudia Dairy & Foodstuff Co -0.71 -0.75 Gulf International Chemicals 0.22 0.00 700 121.28 2,675 Ithmaar Holding Bsc 39.60 3,302,998 Bahrain Family Leisure Co 0.00 0.00 - National Shipping Co Of/The -0.41 0.00 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - 28.96 218,366 Aviation Lease And Finance C 360.00 110,619 Bahrain Duty Free Complex 0.77 0.00 150,792 Methanol Chemicals Co -0.10 -7.69 Global Fin Investment 0.14 -0.72 252,000 10.01 737,257 Arzan Financial Group For Fi 30.00 302,091 Bahrain Commercial Facilitie 0.73 0.69 23,300 Chubb Arabia Cooperative Ins 0.13 0.46 Galfar Engineering&Contract 0.08 -1.19 743,172 23.91 145,361 Ajwan Gulf Real Estate Co 21.80 441,010 Bahrain Cinema Co 0.00 0.00 - Mobile Telecommunications Co -0.28 -0.19 Galfar Engineering -Prefer 0.39 0.00 - 7.00 1,147,187 Kuwait Business Town Real Es 51.30 248,600 Bahrain Car Park Co 0.00 0.00 - Saudi Arabian Coop Ins Co -0.61 0.00 Financial Services Co. 0.18 0.00 - 19.66 197,852 Future Kid Entertainment And 110.00 2,000 Arab Insurance Group(Bsc)-$ 0.46 0.00 100,000 Axa Cooperative Insurance -0.16 0.00 Financial Corp/The 0.10 0.00 - 25.39 454,294 Specialities Group Holding C 64.00 100 Arab Banking Corp Bsc-$Us 0.31 0.00 100,000 Alsorayai Group 0.17 3.55 Dhofar University 0.00 0.00 - 11.91 160,933 Abyaar Real Eastate Developm 20.40 1,078,038 Aluminium Bahrain Bsc 0.65 0.00 126,739 Weqaya For Takaful Insurance 0.00 0.00 Dhofar Tourism 0.49 0.00 - 0.00 - Dar Al Thuraya Real Estate C 0.00 - Albaraka Banking Group 0.38 0.00 170,000 Bank Albilad 0.61 0.00 Dhofar Poultry 0.18 0.00 - 21.59 351,402 Al-Dar National Real Estate 0.00 - Al-Salam Bank 0.14 4.41 575,691 Al-Hassan G.I. Shaker Co -0.10 1.60 Dhofar Intl Development 0.31 0.00 - 10.43 172,784 Kgl Logistics Company Kscc 50.80 284,511 Solidarity Bahrain Bsc 0.00 0.00 - Wataniya Insurance Co 0.69 0.00 Dhofar Insurance 0.20 0.00 - 29.04 97,055 Combined Group Contracting 459.00 1,037 Ahli United Bank B.S.C 0.72 0.70 334,200 Abdullah Al Othaim Markets 145.00 0.10 7,987 Jiyad Holding Co Ksc 0.00 0.00 - Dhofar Fisheries & Food Indu 1.28 0.00 - Hail Cement 9.37 -0.11 181,116 Qurain Holding Co 0.00 0.00 - Dhofar Cattlefeed 0.19 0.00 - LATEST MARKET CLOSING FIGURES Gulf Times 14 Monday, February 26, 2018 BUSINESS YouTube said to hold TV spending as Netflix, Amazon bulk up

Bloomberg into entertainment on three fronts: with further behind Netflix and Amazon. music service, which has been receiving SourceFed and AwesomenessTV. YouTube to Red in 2015, and once again began Los Angeles YouTube Red, with a live video service YouTube is one of the three “big bets” a lot of resources. YouTube CEO Susan funded a second round of channels before funding original video series to attract called YouTube TV and with a new music that Google chief executive off icer Sundar Wojcicki recently referred to Red as a ending the programme in 2013. subscribers. The company started by streaming product. Pichai has cited as the company looks for music service, which only added to the The company then shifted from funding pairing online creators with established YouTube is hitting the pause button on its “YouTube Originals are a driving force for future growth. The video site generated an confusion. original video to building a paid service, Hollywood producers. Hollywood expansion. YouTube Red, and we have a full slate of estimated $15bn in sales last year but has “That’s the first time I’ve ever heard you called Music Key. YouTube hoped to sign Susanne Daniels, a veteran TV executive, As Netflix Inc and Amazon.com Inc pour Originals already planned for 2018 and yet to establish more than a foothold in characterise YouTube Red a music serv- up customers with features like commer- joined YouTube from MTV in July 2015 ever-larger sums into TV and movie 2019,” Robert Kyncl, YouTube’s chief busi- paid services. ice,” Chris Williams, the head of children’s cial-free and background listening. The to oversee original programming and production, Google is holding spend- ness off icer, said in a statement. “While we On a February 1 earnings call, Pichai high- media company Pocket.watch, said at the service was designed to attract music fans began looking to back more traditional ing at current levels for its YouTube Red don’t comment on speculation regarding lighted new deals for a low-cost alternative Code Media conference this month. willing to pay a monthly fee for certain entertainment. YouTube bid for movies at streaming service for the next two years, our budgets, you’ll see us continue to to cable TV — dubbed YouTube TV — but Run by engineers, Google has struggled features they didn’t get for free. film festivals and bought TV shows based people with knowledge of the matter said. invest heavily in original programming as made no mention of YouTube Red, the on- to carve out a large role in entertainment At the same time, the clout of YouTube on movies such as The Karate Kid and That’s leading producers to question the we ramp up our overall eff orts to promote demand streaming service first introduced beyond hosting other people’s program- and its cadre of online creators continued Step Up, both of which are popular on the company’s strategy. YouTube Red over the next year.” in October 2015. ming. to grow. Advertising sales on the video video site. Google often makes multiple investments YouTube plans to spend a few hundred YouTube TV, which off ers a bundle of live YouTube was one of the first major tech platform soared and online YouTube in- But few YouTube originals have been brea- in the same industry and waits to see million dollars on TV shows and movies TV channels for $40 a month, has signed companies to fund original shows, seed- fluencers like Michelle Phan began to turn kout hits or received sterling reviews even what works. YouTube, in particular, has this year, said the people, who asked not up an estimated couple hundred thousand ing 100 channels from online creators up in ad campaigns, Hollywood movies with the surge in investment. In the past revamped its video strategy repeatedly as to be identified discussing the company’s subscribers since being introduced last and celebrities like Amy Poehler and Jay and live events. Several ended up making year, a couple of series have been marred parent Alphabet Inc tries to develop paid- plans. While that sounds like a lot, a flat year. Z. The results were mixed but led to the shows for Netflix, Amazon and Hulu. by controversy due to the behaviour of subscriber businesses. Now it’s pushing budget means the company risks falling YouTube is also about to roll out a new birth of several popular outlets, including YouTube changed the name of Music Key their stars.

Fed’s Williams says he sees New Nafta talks aim to clear case for rate hike in pathway to toughest issues ‘near future’ Bloomberg Reuters New York Mexico City ederal Reserve Bank of San exico and Canada aim to fi n- Francisco President John ish reworking less conten- FWilliams said he favours Mtious chapters of the Nafta three or four interest-rate in- trade deal with the United States in creases this year and policy mak- new talks that began on Sunday, hop- ers should make a move soon. ing to clear the path for a breakthrough “It makes sense to think about on the toughest issues before upcom- three or four rate increases in ing elections. 2018,” Williams told reporters In six months, negotiators have following a speech on Friday in ground out progress on the technical Los Angeles. When asked if he’d details of a revamped North American want to move at the Fed’s next Free Trade Agreement, but made little meeting, on March 20-21, he de- advance on the most radical demands clined to comment directly but made by the administration of US said that “we should be moving President Donald Trump. ahead with a rate increase rela- Ranging from demands for major tively soon, in the near future.” changes to automotive content rules Williams, who votes on mone- and dispute resolution mechanisms, tary policy this year and has been to imposing a clause that could auto- interviewed by the White House matically kill Nafta after fi ve years, the for the post of Fed vice-chair- chief stumbling blocks laid by the White man, painted an upbeat picture House look unlikely to be removed in the of a US economy, echoing recent latest Mexico City round, offi cials say. remarks from other US central But if the three negotiating teams bankers. Investors have essen- manage to iron out remaining diff er- tially fully priced in a rate hike at ences on areas of broader consensus, the Fed’s March meeting. offi cials hope the political leaders will Offi cials pencilled in three turn their attention to brokering a rate moves this year in projec- compromise on the trickiest US pro- tions they submitted in De- posals. Chrystia Freeland, Canada’s minister of foreign aff airs (left), shakes hands with Ildefonso Guajardo Villarreal, Mexico’s secretary of economy, before a bilateral meeting in cember which will be updated “I think there’s going to be major Toronto on January 22. Guajardo has said his negotiating team aims to present a proposal on rules of origin for passenger cars or light trucks at the new round of Nafta next month. Investors will get a progress on the technical issues and talks that began on Sunday, though he has not provided details. chance for a fuller description of major obstacles on the critical issues,” the outlook when Jerome Pow- Bosco de la Vega, head of Mexican higher auto content requirement with a be reached between Trump and auto ened to do if the overhaul of the accord Ruff o, a Mexican senator from the bor- ell delivers his fi rst testimony farm lobby the National Agricultural proposal to include expenses for engi- sector bosses in the United States who does not benefi t the United States. der state of Baja California.”That’s why to Congress as Fed chairman on Council, said of the talks running until neering, research and development and oversee the Nafta region, an industry Negotiators had wanted to wrap up we’re onto the seventh round.” February 27. March 5. other high-value work in the total. source close to the process said. talks by March to avoid them being po- Still, a source familiar with Cana- Williams said the labour mar- Once agreement is reached on tech- Under Nafta, at least 62.5% of the Rules of origin are due to be dis- liticised by Mexico’s July presidential dian government thinking said Ottawa ket could continue to pull some nical chapters such as state-owned en- net cost of a passenger car or light cussed during the fi rst three days of election. had little idea what would happen at people from the sidelines and he terprises, barriers to trade and e-com- truck must originate in the region to this round of talks. But offi cials have already raised the round. expected productivity growth to merce, about 10% of the modernised avoid tariff s. The North American auto industry the possibility that they will run past Canada’s chief negotiator Steve Ver- pick up as investment rebound, accord would eventually be left over for Trump wants the threshold raised to has so far pushed back against Trump’s Mexico’s vote, and some say they could heul struck a downbeat tone last week, while infl ation should move up as political leaders to work out, de la Vega 85%. demands, arguing it would damage continue at a technical level for several telling a business audience “there are temporary factors that weighed it estimated. “You can’t have a successful negoti- competitiveness and regional supply months if necessary. large gaps between what we’re trying down last year recede. Infl ation, Mexico hopes to build on the previ- ation if there’s no change to the rules of chains. A US offi cial noted “there has nev- to achieve and what the US is trying to according to the Fed’s preferred ous round of talks in Montreal, when origin,” said the Mexican offi cial, add- The latest round comes amid fl are- er been a hard deadline”, and among achieve.” gauge, was 1.7% in the 12 months Canada fl oated what it called “crea- ing, “it won’t be 85%. We’re not sure ups between Washington and Ottawa Mexicans following the process, belief But Canada would stay in the talks through December and has been tive” solutions to the US demands. what the number is going to be.” and growing, if cautious, optimism in is growing that lobbying eff orts by US as long as it saw a chance of striking a below the central bank’s 2% tar- “We will address and deepen the Mexico’s Economy Minister Ilde- Mexico that the trade agreement will business leaders and politicians to pre- deal, Verheul said. get for most of the last six years. discussion on Canada’s proposals,” a fonso Guajardo has said his negotiat- remain. serve Nafta has been gaining traction. “Heading into the next round we will Williams also said he’s watch- Mexican offi cial told Reuters, speaking ing team aims to present a proposal on Talks are running behind schedule “Nafta will survive, because the bring a lot of ideas to the table,” he said. ing to see whether the neutral on condition of anonymity due to the rules of origin, though he has not pro- and some offi cials believe the longer economy wins out in the end. “We will be aiming to try to achieve real rate may head higher on the sensitivity of the matter. vided details. they last, the less likely it is that Trump The bosses of the big fi rms are mak- progress and we’re hoping the US back of recent tax cuts passed by Canada countered US demands for a Any fi nal agreement would need to will dump Nafta, which he has threat- ing the argument for us,” said Ernesto will bring a similar attitude.” Congress. Apple’s new spaceship campus has one fl aw — and it hurts

Bloomberg the building “a little like a spaceship landed.” San Francisco Jobs has been credited for coming up with the glass pods, designed to mix solo offi ce areas with more social spaces. he centrepiece of Apple Inc’s new head- The building is designed to house some quarters is a massive, ring-shaped offi ce 13,000 employees. Wired magazine, fi rst to pay Toverfl owing with panes of glass, a testa- a visit at its opening last year, described the ment to the company’s famed design-obsessed structure as a “statement of openness, of free aesthetic. movement,” in contrast to Apple’s typically in- There’s been one hiccup since it opened last sular culture. year: Apple employees keep smacking into the “While it is a technical marvel to make glass glass. at this scale, that’s not the achievement,” Jony Surrounding the Cupertino, California- Ive, Apple’s design chief, told the magazine in based building are 45-foot tall curved panels May. of safety glass. Inside are work spaces, dubbed “The achievement is to make a building “pods,” also made with a lot of glass. Ap- where so many people can connect and col- ple staff are often glued to the iPhones they laborate and walk and talk.” helped popularise. That’s resulted in repeated An Apple spokeswoman declined to com- cases of distracted employees walking into the ment. It’s not clear how many incidents there panes, according to people familiar with the have been. A Silicon Valley-based spokeswom- incidents. an for the Occupational Safety and Health Ad- Some staff started to stick Post-It notes on ministration referred questions about Apple’s the glass doors to mark their presence. How- workplace safety record to the government ever, the notes were removed because they de- agency’s website. A search on the site based on tracted from the building’s design, the people Apple’s name in California found no reports of said. They asked not to be identifi ed discuss- injuries at the company’s new campus. ing anything related to Apple. Another person It’s not the fi rst time Apple’s penchant for familiar with the situation said there are other glass in buildings has caused problems. In late markings to identify the glass. 2011, 83-year-old Evelyn Paswall walked into Apple’s latest campus has been lauded as an the glass wall of an Apple store, breaking her architectural marvel. The building, crafted by nose. She sued the company, arguing it should famed architect Norman Foster, immortalised have posted a warning on the glass. The suit a vision that Apple co-founder Steve Jobs had was settled without any cost to Apple, accord- The Steve Jobs Theater stands on the Apple Inc campus after an event in Cupertino, California, in September 2017. Surrounding the building are years earlier. In 2011, Jobs reportedly described ing to a legal fi ling in early 2013. 45-foot tall curved panels of safety glass. Inside are work spaces, dubbed “pods,” also made with a lot of glass. Gulf Times Monday, February 26, 2018 15 BUSINESS

Cisco says most network gear needed for 5G is Trump is said to favour stiff est ready now and can cut costs US steel and aluminium tariff s Reuters Barcelona Bloomberg Washington Cisco Systems said yesterday it aims to disrupt the wireless radio access market resident Donald Trump has led by Huawei, Ericsson and Nokia by told confi dants that he wants backing challengers who make more flexible Pto impose the harshest tariff s software versions of traditional mobile gear. on steel and aluminium imports rec- Cisco, known for making networking gear ommended by the Commerce De- that moves big volumes of data around partment, according to three people the internet, wants a bigger share of the familiar with the matter. mobile market by backing these alternative Trump has said he wants to slap a providers rather than by making radio global tariff of 24% on steel imports, access equipment itself. the most severe of three options pre- Its radio access network push is part of sented to him in a report in January. Cisco’s eff orts to prove to mobile network He is also considering as much as a operators that investing in modern 10% duty on all aluminium entering infrastructure and automation tools can the US, which would be more than help them to cope with increased data 2.5 percentage points higher than demands, while lowering costs. the harshest of Commerce’s recom- The Silicon Valley company made the mendations. announcement ahead of this week’s Mobile The process is ongoing, White World Congress in Barcelona, where House offi cials said on Friday. hundreds of telecom operators are looking AK Steel Holding Corp jumped for new ways to deal with exploding more than 6% in late trading, joining customer data demands and intense a rally among metals producers on pricing pressures. the news. Steel Dynamics Inc, Nucor Cisco said it is working with more than 20 Corp, Alcoa Corp and Century Alu- network operators to off er next-generation minum Co also advanced. 5G services, which promise to deliver not Tariff s on such widely used com- just faster phones and video, but also modities could spark retaliation connected cars and Internet-connected from nations including China and industrial sensors over the next decade. allies like Canada, while poten- “Many of the things we enable you to do, tially raising prices on everything you can do before 5G,” Yvette Kanouff , from cars to beer cans. Some po- general manager of Cisco’s business unit litical analysts and economists have for telecom service providers, told Reuters speculated the president would take in an interview. a targeted approach to the tariff s, Ray Mota, an industry analyst at ACG and he’s under pressure from mem- Research, said Cisco was looking to bers of his own Republican party to convince operators to spend more on what refrain from measures that may an- he called “precursors to 5G”, which solve tagonise other countries and disrupt US President Donald Trump speaks during a meeting with bipartisan members of Congress on trade in the Cabinet Room of the White House in Washington, pressing network issues but won’t need supply chains. DC, on February 13. According to sources, Trump has said he wants to slap a global tariff of 24% on steel imports, the most severe of three options presented to be replaced once 5G rolls out in earnest “As with every decision he makes, to him in a report in January. He is also considering as much as a 10% duty on all aluminium entering the US, which would be more than 2.5 percentage points starting around 2020. the security of the American people higher than the harshest of Commerce’s recommendations. Ovum, another research firm, said Cisco’s and the American economy will be message was that “an operator can deliver the president’s primary concerns paign trail in 2016 to revive US coal There is resistance even within his Trump may still opt for a more For example, the department said much of the functionality of 5G, with up to while he considers his potential op- and steel industries, which ral- own administration. The Commerce targeted approach, as Defense Sec- Trump could impose a global tariff 85% of its features, today.” tions,” White House spokesman Raj lied voters in places like southwest Department overnight released a retary James Mattis has urged. At a on all steel imports of at least 24%. So-called virtual Radio Access Network Shah said in a statement. Pennsylvania. memo from the Defense Department meeting with lawmakers earlier this Alternatively, the president could (vRAN) providers include mobile industry “President Trump is commit- A special election on March 13 warning about making rash trade month, Ross himself suggested the slap a tariff of at least 53% on steel outsiders like Intel, Red Hat, Mavenir, Phazr, ted to achieving fair and recipro- to fill an open seat in Pennsylva- decisions. Trump’s economic advis- president might want to be “surgi- imports from a select number of and Tech Mahindra which seek to replace cal trade relationships that protect nia’s 18th Congressional District is er Gary Cohn and national security cal” in his application of any tariff or countries, including China, India proprietary wireless radios made by the the American worker and grow our likely to be viewed as a bellwether adviser H R McMaster are against quota. and Brazil, while other countries mobile industry’s big three with cloud- economy.” for the midterm elections in No- any action, one person familiar with The president last year ordered would have their shipments capped based software. The Commerce Department con- vember. the matter said. the Commerce Department to probe at the amount they exported to the Virtual radio gear enables customers to rely cluded in a report last month that Trump warned Republicans not White House aides said there is whether imports of steel and alu- US last year. on commodity computer hardware, cutting steel and aluminium imports imperil to be “complacent” during the mid- widespread agreement in the ad- minium pose a threat to US national Finally, the report suggested out big costs for mobile networks. US national security. Commerce terms in a speech at the Conserva- ministration that China has sys- security, invoking the seldom-used Trump could order a quota on all Cisco’s eff ort is supported by Indian recommended a range of options for tive Political Action Conference on tematically engaged in policies Section 232 of the 1962 Trade Act, steel products equal to 63% of each operator Reliance Jio, which since 2016 has the president, including imposing Friday. intended to destroy the US domes- which allows the president to im- country’s 2017 exports. up-ended the country’s mobile market by tariff s for certain nations and set- He is contemplating an announce- tic steel industry. While China ac- pose tariff s without congressional American allies are some of the building a state-of-the-art 4G network and ting import quotas. Trump has until ment about the tariff s at an event in counts for just a small fraction of US approval. biggest sources of its steel purchas- giving away free voice and data services for April 11 to make a decision on steel Pennsylvania days before the special imports, it’s accused of fl ooding the The Commerce report outlines a es. They include the largest supplier, six months to win a wide following. and April 19 for aluminium. election, according to a person fa- global market and dragging down range of actions, or no action, that Canada, along with South Korea, Trump promised on the cam- miliar with the matter. prices. the president is entitled to take. Mexico and Germany. New US tax law brings Buffett’s firm $29bn EIB investigates loans AFP New York

Berkshire Hathaway, the holding company to Daimler in light of of US billionaire investor Warren Buff ett, received a stunning $29bn last year from the US government, thanks to a new tax law that massively lowered corporate tax rates. In his much-anticipated annual letter to diesel questions shareholders, Buff ett explained that the company’s net gain of $65.3bn in 2017 was only partly due to his employees’ eff orts. Reuters to have illegally installed software he had bought an almost 10% “Only $36bn came from Berkshire’s Frankfurt “defeat devices” to dupe US regu- stake in Daimler, in a $9bn bet operations,” he wrote. “The remaining latory tests, sparking the biggest to access the Mercedes-Benz $29bn was delivered to us in December business crisis in its history. owner’s technology. when Congress rewrote the US Tax Code.” he European Investment It settled the principal US The move poses a challenge Still, Buff ett assured stockholders, “The Bank may ask Daimler to cases for $25bn the following to Daimler, which as well as its $65bn gain is nonetheless real — rest Tpay back loans extended year, although a host of others Chinese partnership with BAIC assured of that.” for research and development in are still pending. Motor Corp has an industrial al- The new law, greatly touted by President light of a report linking the Mer- The Daimler spokesman liance to develop cars and trucks Donald Trump, lowered the tax rate paid by cedes maker to diesel emission- declined to comment on the with Renault-Nissan, which US corporations from 35% to 21%, allowing test cheating, Welt am Sonntag amount of outstanding loans owns a 3.1% stake in Daimler. many to undertake major new outlays and reported. from the EIB, while the bank did Geely’s chairman Li Shufu, others to book significant fiscal gains. The company has received a not immediately respond to a who quietly built up the 9.7% Berkshire Hathaway wholly owns dozens total of €3.8bn ($4.7bn) in loans request for comment. stake, is now expected to meet of companies — from Dairy Queen to from the EIB since 2000, with Since 2009, the EIB has Daimler executives in Stuttgart Duracell — and holds significant shares in around 2bn still outstanding, granted more than 8bn euros today, a source familiar with the large and diverse corporations including the newspaper said. ($10bn) in preferential loans to matter said, and hopes to meet American Express, Apple, Bank of America, “The EIB is worried about the back development of vehicles top German government offi - Charter Communications, Coca-Cola, “Only $36bn came from Berkshire’s operations. The remaining $29bn was delivered accusations against Daimler and with lower carbon dioxide (CO2) cials in Berlin. Delta Air Lines, General Motors, Goldman to us in December when Congress rewrote the US Tax Code,” Buff ett explained in his their potential consequences for emissions by car makers, in- His approach contrasts with Sachs, Moody’s, Wells Fargo and Southwest much-anticipated annual letter to shareholders. the bank’s credit fi nancing of the cluding VW. that of previous Chinese in- Airlines. company,” an EIB spokesman said In France, the bank has asked vestors in German technology Buff ett’s newsletters are read with intense when the prices asked for businesses “hit catastrophe” this year — one causing losses in an article published yesterday. investigators to fi nd out whether companies — such as Midea, interest on Wall Street and beyond. an all-time high,” amid what he called “a of at least $400bn — at 2%. The news comes after Bild €800mn of EU-backed loans to which bought Kuka or Weichai, Known as the “Oracle of Omaha” — after purchasing frenzy.” “No one, of course, knows the correct am Sonntag reported last week French carmaker Renault could which bought a large stake in his birthplace in the Midwestern state of “Price seemed almost irrelevant to an army probability,” he added. US investigators had found that have been used to develop test- Kion — who have tended to en- Nebraska — he is one of the world’s most of optimistic purchasers,” Buff ett noted. Buff ett concluded with a little advice to Daimler’s cars were equipped cheating diesel engines, accord- gage in lengthy consultation successful investors and one of its richest Still, he said, the company “will have fellow investors: “Though markets are with software that may have ing to documents seen by Reuters. with stakeholders. men. opportunities to make very large generally rational, they occasionally do helped them pass emissions tests. Meanwhile, Daimler and its Berlin said it saw no need to Now 87, he has been investing since he first purchases” going forward, with emphasis crazy things.” Daimler said it was cooperating Chinese partner BAIC plan to take any action over Geely’s bought stock at the age of 11. on those available at “a sensible purchase “Seizing the opportunities then off ered with the US authorities and had invest almost $2 bn in a state- purchase, either in terms of His latest newsletter reports that price.” does not require great intelligence...(or) agreed upon strict confi dentiality of-the-art factory in China, competition rules or of foreign Berkshire’s net earnings rose last year from Buff ett said Berkshire would stick with a a degree in economics,” but rather “an with the Department of Justice. It underlining their relationship investment rules. $24.07bn to $44.94bn. “simple guideline: The less the prudence ability to both disregard mob fears or has not been charged with any- as rival Geely makes a surprise “It is a company decision,” a In the letter, he added: “2017 was far from with which others conduct their aff airs, the enthusiasms and to focus on a few simple thing by the US authorities. swoop on the German carmaker. government spokesman said. standard: A large portion of our gain did greater the prudence with which we must fundamentals,” he added. The EIB said it would need to The two will invest more than “Due to the character of the in- not come from anything we accomplished conduct our own.” Forbes magazine estimates Buff ett’s wait for the outcome of offi cial 11.9bn yuan ($1.88bn) in mod- vestment as a minority stake, at Berkshire.” Buff ett also said that while Berkshire’s personal worth at some $87bn. investigations before deciding ernising a plant to build premium there is no need to act.” The year also saw the company’s war chest insurance holdings would take a $2bn He has undertaken — as part of the whether Daimler should repay Mercedes-Benz cars including The government declined to swell to $116bn in cash and US Treasury after-tax hit from losses caused by so-called Giving Pledge he co-founded the loans, the newspaper said. electric vehicles, BAIC said in comment on a report in German bills, financial manna that Buff ett wants to hurricanes last year in Florida, Texas and with Bill Gates and Facebook CEO Mark A Daimler spokesman told a fi ling to the Hong Kong Stock tabloid Bild am Sonnntag that Li use to make significant new acquisitions. Puerto Rico, other reinsurance companies Zuckerberg — to donate more than 99% Reuters it had received a request Exchange dated on Friday and would visit the German chan- Berkshire’s often-impressive pace of did far worse. of his fortune to charities, and has already for information from the EIB and confi rmed by Daimler yesterday. cellery for a “secret meeting” acquisitions had slowed last year, he noted, And he estimated the chances of a “mega- given away some $32bn. was cooperating with the bank. The chairman of Chinese car- with Angela Merkel’s economic Volkswagen was found in 2015 maker Geely said late on Friday adviser tomorrow. Monday, February 26, 2018 GULF TIMES BUSINESS Benchmark oil futures continue their rally for 2nd week

By Sofiane Ghezali fundamentals and other global was due to a gas leak from a supply www.abhafoundation.org economic factors. line, while the reduced sales from the 18 mtpa US Sabine Pass plant was Gas due to reduced feed-gas. In response, Oil North Asian LNG spot prices for Petronas is believed to have bought Benchmark oil futures continued their March delivery held steady at a cargo from Australia’s APLNG to rally for a second week as supporting almost $9.9/mmbtu, slightly lower cover its lost Bintulu production factors overshadowed downward price than the previous highs achieved and Cheniere was forced to look for pressures. As a consequence, Brent in January and February. Overall, reloaded LNG cargoes from Europe to and WTI gained around 7% over two global gas demand remained robust compensate for its losses. weeks. due to continued cold weather in In the UK, NPB wholesale gas prices The recent rally was maintained by the the Northern hemisphere and LNG rose ahead of forecasts of colder recovery in global equity markets; the production outages at Malaysia’s weather, leading to higher gas surprising fall in US crude oil stocks; Bintulu and US Sabine Pass plants. demand. The cold snap coincides and the disruption of supplies from Taken together, these events led to with reduced gas supplies from the with the Asian LNG premium market. US natural gas production for the next Sofiane Ghezali is senior the Libyan El Feel field, all of which firmer prices, leaving those buyers, Groningen field and at a time of lower The US Henry Hub front month futures two weeks is forecast to be well above energy researcher at Abdullah conspired to push prices higher. The who had previously delayed purchases storage volumes and LNG imports. price remained close to the lowest the February’s average, leading to bin Hamad Al-Attiyah US stock drawdown was due to oil for the front month, disappointed. To meet the expected spike in gas level reached since August 2016. additional downward pressures on gas International Foundation market backwardation, lower imports The reduced production from the 29 demand, European gas prices are Nevertheless, the demand forecast is prices, overshadowing the outlook for for Energy and Sustainable and higher exports. mtpa Bintulu LNG production plant expected to rise in order to compete stabilising as the winter season ebbs. colder weather. Development. Statements by the Saudi Arabian energy minister also supported prices when he gave renewed assurances that Saudi production would remain below its Opec production cap. The minister also suggested that prevailing production limitations would be eased sometime next year, and a new cooperation platform between Opec and its allies would be adopted to fast-track the decision- making process. Oil price gains were again capped by strong US production and rising exports. US drillers added another rig to reach 799, the highest number since April 2015. US Dollar fluctuations also weighed on the prices. The second quarter oil market is preparing for the driving season. Refineries are ramping up maintenance plans to prepare for the summer season peak demand. Meanwhile, oil prices might remain volatile due to competing factors influencing supply and demand

QSE opens week weak despite buying support

By Santhosh V Perumal Local individuals’ net profit Business Reporter booking grew influentially to QR4.78mn compared to QR2.21mn the previous trading The Qatar Stock Exchange day. Non-Qatari individuals’ yesterday opened the week net selling strengthened weak, but remained above considerably to QR4.71mn 9,000 points, despite buying against QR1.82mn last Thursday. interests within the insurance, The Gulf funds’ net buying telecom and industrials weakened substantially to counters. QR0.81mn compared to Foreign funds turned bearish QR3.08mn on February 22. and there was increased net The Gulf individual investors’ selling by local as well as non- net buying declined perceptibly Qatari retail investors as the to QR0.43mn against QR1.04mn 20-stock Qatar Index shed 0.18% the previous trading day. higher at 9,080.13 points. However, domestic institutions Islamic stocks were seen turned net buyers to the extent Mwani Qatar CEO Captain Abdulla al-Khanji and Pelindo 1 president director Bambang Eka Cahyana signing the MoU yesterday. declining faster than the other of QR12.11mn compared with indices in the market, which is net sellers of QR2.22mn last up 6.53% year-to-date. Thursday. However, domestic funds turned Total trade volume fell 27% to bullish on the bourse, whose 4.14mn shares, value by 16% to capitalisation was down 0.08% QR113.47mn and transactions to QR486.97bn. by 14% to 1,946. The banks and Trade turnover and volumes financial services sector saw were on the decline on the 57% plunge in trade volume to Mwani Qatar signs bourse, where banking and 1.42mn equities, 54% in value real estate sectors together to QR30.73mn and 47% in deals accounted for more than 64% of to 489. the total volume. The consumer goods sector’s Al Rayan Islamic Index declined trade volume plummeted 20% 0.24% to 3,669.34 points, Total to 0.12mn stocks and value by Return Index by 0.18% to 15,405.3 29% to QR7.55mn but on 10% points and All Share Index by jump in transactions to 169. MoU with Indonesian 0.22% to 2,548.27 points. The telecom sector’s trade The realty index shrank 1.28%, volume declined marginally to banks and financial services 0.11mn shares, value by 47% to (0.49%), consumer goods QR2.6mn and deals by 6% to 110. (0.31%) and transport (0.18%); However, the transport sector’s whereas insurance gained trade volume more than 1.69%, telecom (0.51%) and doubled to 0.13mn equities and port fi rm Pelindo 1 industrials (0.35%). value also more than doubled About 47% of the stocks were to QR4.74mn but on 14% fall in Agreement aims to boost motion and relevant innovative portant starting point towards He said that this helps stimu- is currently on a visit to Qatar in the red with major losers transactions to 61. exchange of best practices technologies. enhancing partnership oppor- late trade and boost investment with a view to strengthening being Commercial Bank, Ezdan, The insurance sector’s trade and experiences in the The MoU also aims at encour- tunities, developing business and economic diversifi cation, bilateral relations and mulling Widam Food, Mazaya Qatar, volume doubled to 0.18mn field of ports operation and aging logistics works, trade, ex- and benefi ting from the techni- thus achieving the goals of the over means of enhancing coop- Qatar Islamic Bank, Masraf Al stocks and value more than management changing information technol- cal expertise and capabilities of Qatar National Vision 2030. eration. Rayan, Mesaieed Petrochemical doubled to QR8.88mn on 68% ogy and exploring initiatives. both parties.” Pelindo 1 is one of the four They paid a fi eld visit to Ha- Holding and Nakilat; even as Ahli expansion in deals to 114. atar Ports Management The MoU was signed at the This cooperation, he said, state-owned port companies in mad Port’s facilities, piers, con- Bank, Al Khaliji, Qatar Electricity There was 19% surge in the real Company (Mwani Qatar) Ministry of Transport and would contribute to achieving Indonesia, which manages ports tainer terminals and the serv- and Water, Qatari Investors estate sector’s trade volume Qand PT Pelabuhan Indo- Communications by Mwani the company’s plans that aim to in the west of Indonesia. It also ices provided. They also were Group, Qatar Insurance, to 1.25mn shares and 41% in nesia I (Pelindo 1) have signed Qatar CEO Captain Abdulla al- boost Hamad Port’s pioneering specialises in logistics services. briefed on port construction Ooredoo and Gulf Warehousing value to QR25.87mn but on 21% an MoU that aims to boost the Khanji and Pelindo 1 president status regionally and interna- There are 17 ports in the west phases and the future plans that were among the gainers. slump in transactions to 341. The exchange of best practices and director Bambang Eka Cahyana. tionally through applying the of Indonesia, spanning four MOTC executes and oversees Non-Qatari institutions turned industrials sector’s trade volume experiences in the fi eld of ports Captain al-Khanji expressed best global practices and stand- provinces such as Aceh, North and which aim to bolster the net sellers to the tune of was up 3% to 0.91mn equities, operation and management, as happiness at signing the MoU ards, as well as maintaining a Sumatra and Riau Islands. port’s ranking and turn Qatar QR3.85mn against net buyers of value by 15% to QR33.1mn and well as bolstering bilateral com- with the Indonesian company, world-class operational effi - Pelindo 1 owns six subsidiaries. into a dynamic business hub for QR2.13mn on February 22. deals by 31% to 662. munication on investment, pro- affi rming that it “marks an im- ciency in all its operations. An Indonesian delegation the region. Investors skip oil rally to chase more volatile markets

Bloomberg participate in,” Bill O’Grady, chief mar- it or are too busy with other markets. though, have some good reasons to stay barrels a day for only the second time to the lowest in seven weeks. The Brent New York ket strategist at Confl uence Investment “There is some indecisiveness here,” the course. on record. In a sign of the shifting net-long position dropped 3.6% to Management in St Louis, said. John Kilduff , a partner at Again Capital Supply levels at America’s crude dynamics in the US crude market, 523,295 contracts, the least bullish in “Equities are attractive, you’ve got a LLC, a New York-based hedge fund, storage and distribution hub in Cush- the Louisiana Offshore Oil Port com- about four months, according to ICE edge funds seem to have better lot of activity in bonds. You’ve got bit- said. ing, Oklahoma, are rapidly depleting pleted its first deep-water terminal to Futures Europe. Longs fell 2.4%, while use for their money than get- coin jumping around.” and have sunk to the lowest level since load crude into very large vessels for shorts rose 15%. Hting on the oil rebound band- Meanwhile, a sharp decline in US A sharp decline in US stockpiles 2014. export. The CFTC data is “supportive be- wagon. stockpiles and rising global demand and rising global demand for Overall US crude inventories de- Hedge funds reduced their WTI net- cause it’s telling you some of the froth Their bets on rising crude prices for crude from the country’s booming crude from the country’s booming clined last week at a time when supplies long position — the diff erence between is coming out of the market, but it’s not shrank for a fourth straight week even shale fi elds helped push futures higher shale fi elds helped push futures usually build due to seasonal refi nery bets on a price increase and wagers on a wildly bullish either because if any- as futures rallied. Bullish wagers on for a second week. higher for a second week maintenance. drop — by 1.4% to 444,370 futures and thing, what you have here is disinter- West Texas Intermediate oil retreated The global oil market is re-balancing And where is all that crude going? options during the week ended Febru- est,” O’Grady said. to the lowest since early January and and the decline in inventories is ex- “Given the moves we’ve seen in equi- A growing share of it is being shipped ary 20, according to the US Commodity In the fuel market, money managers investors’ stance on Brent was at its pected to continue this year, Saudi Ara- ties and the fi xed income market, there overseas as production cuts led by the Futures Trading Commission. decreased their net-long position on worst since October. bia Energy Minister Khalid al-Falih told might be greener pastures for some of Organization of Petroleum Exporting Longs dipped by 2.7%. Shorts shrank benchmark US gasoline by 11%, while “With all the volatility around, hedge reporters in New Delhi on Friday. this more speculative money.” Countries tighten global supplies. 18% to the lowest level in more than the net-bullish position on diesel slid funds are looking for other things to But hedge funds either don’t buy Those who are sticking with oil, US exports have surpassed 2mn three years. Total positioning shrank 19%.