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Friday, August 26, 2016 Dhul-Qa’da 23, 1437 AH

EUROPE SUPPLIES: Page 3 GULF TIMES Threat of war, earthquakes and Brexit can’t BUSINESS stop gas plunge Iran will join Opec 21 QSE stocks eligible to meet in Algeria: join FTSE Russell index Minister By Santhosh V Perumal AFP Business Reporter Tehran

s many as 21 of the 44 stocks Iran will take part in an informal listed on the Qatar Stock Ex- meeting of Opec countries in Achange (QSE) have been found Algeria next month, state media eligible to be included in the FTSE reported yesterday. “I will take part Russell global market equity index. Of in this session,” Oil Minister Bijan the 21, half are large-cap equities. Zanganeh told the ministry’s Shana The eligible constituents are Aamal news service. Company, Al Meera Consumer Goods, Iran had previously said it had not Barwa, Commercial Bank, Doha Bank, yet taken a decision on whether to Ezdan Holding, Industries Qatar, attend the closed-door meeting on Masraf Al Rayan, Medicare Group, the sidelines of the International Ooredoo, Qatar Electricity and Water, Energy Forum in Algiers in late Nakilat, Qatar Insurance, QIIB, Qatar September. Islamic Bank, QNB, Milaha, Qatari Oil markets have been carefully Investors Group, Salam International tracking reports of whether Iran Investment, United Development will attend the meeting, which Company and Vodafone Qatar. other Opec members hope will This announcement comes in the lead to a freeze in production that wake of FTSE Russell deciding to would boost oil prices. upgrade Qatar next month to emerg- Iran refused to accept a freeze ing market category from the frontier earlier this year, having just status, a move seen to witness higher emerged from international funds infl ow from overseas. sanctions and keen to maximise “Further to the notice released on its oil revenues, but rumours this August 15, 2016 regarding the reclas- week that it may have changed its sifi cation of Qatar from frontier to position have led to a 10% spike in secondary emerging market status prices, according to Bloomberg. within the FTSE Country Classifi ca- Zanganeh did not comment on tion scheme, FTSE Russell announces whether Iran, Opec’s third-biggest the indicative list of Qatari companies producer, would support a cap which will be eligible for addition to on production at the September the FTSE Global Equity Index Series meeting. at the September 2016 review,” Lon- He did mention that Opec secretary don-based index compiler said. general Mohammed Barkindo will As per the indicative list of FTSE be visiting Iran “in the near future,” Russell, among the eligible stocks, 11 according to the Shana agency. of them are large caps, six mid-caps, Iran says it has doubled its exports three small caps and one micro-cap. of oil and gas to 2.7mn bpd since Selective speculation on individual The QSE has already been upgraded to emerging markets by MSCI and Standard & Poor’s-Dow Jones signing an accord with world scrips to be included in the FTSE Rus- powers in July 2015 that removed sell index had last week resulted in a houses to be liquidity providers for funds infl ow may further propel the The low oil price environment and going developmental works) and the sanctions in exchange for curbs on large one-day gain, whose sustainabil- individual scrips and some entities QSE, even as some analysts held that the appurtenant slowdown in the diffi culty in accessing fi nance for the its nuclear programme. ity had been questioned by many fi nan- had taken advantage of the scheme. there could also be some knee-jerk economy and national spending have private sector have undeniably ex- Oil production has risen from cial experts. The QSE has already been Moreover, margin lending has also reactions. been nagging persistent dampeners in tended extraneous weak traction to 2.7mn bpd to 3.85mn bpd in that upgraded to emerging markets by MSCI been allowed in principle to further “Infl ows, rather passive, could be the Middle Eastern economies in gen- those economies that are more sus- time, close to the level before and Standard & Poor’s-Dow Jones. boost the daily trading volumes and expected but they come with a cave- eral, which have had its repercussions ceptible to hydrocarbons,” an analyst international sanctions were As part of eff orts to improve liquid- turnover in the market. at,” an analyst with a leading broker- in the private sector as well, he said. tracking infrastructure equities in the imposed in 2012. ity, the bourse had allowed brokerage Expectations are high that foreign age house said. “Friction in cash fl ows (to the on- Gulf Cooperation Council said.

A M Best affirms DIC ratings; outlook remains ‘stable’ Moody’s upgrades ratings

By Santhosh V Perumal Re Underwriters (Mena Re). DIC has estab- Business Reporter lished a strong franchise within its domestic of Masraf Al Rayan market. Although the company’s gross written premium fell by 7% to QR494mn in 2015, A M Best, an international insurance rating primarily driven by the reduction of infrastruc- lobal credit rating agency Moody’s said the key driver of agency, yesterday aff irmed Doha Insurance ture projects in a low oil-price environment, Moody’s has upgraded Mas- the upgrade is the bank’s increasing Company’s (DIC) financial strength rating at DIC remained one of the leading insurance Graf Al Rayan’s long term geographical diversifi cation follow- ‘A- (Excellent)’ and the issuer credit rating at “a-”, providers in the country. issuer ratings to A1 from A2 and ing the growth and fi rst time prof- both with “stable” outlook. In order to diversify its insurance portfolio and Counterparty Risk (CR) Assessment itability of its subsidiary Al Rayan The ratings reflect the insurer’s very strong risk- broaden its footprint, DIC opened in November to ‘Aa3(cr)’ from ‘A1(cr)’. Bank UK (originally Islamic Bank of adjusted capitalisation, solid position within the 2015 Mena Re, a fully owned reinsurance MGA. At the same time, the baseline Britain). domestic insurance market and track record of Mena Re operates out of the Dubai International credit assessment (BCA) and adjust- “Going forward, we expect these good operating performance, the rating agency Financial Centre, writing inward facultative busi- ed BCA were raised to ‘baa2’ from diversifi cation trends to continue said. “However, off setting rating factors are its ness in the Middle East and North Africa (Mena), ‘baa3’. as the bank’s UK subsidiary grows underdeveloped risk management framework and is expected to be a driver of growth for DIC in Concurrently, the rating agency further and helps off set the slow- and execution risk associated with the company’s the next few years. affi rmed the ‘Prime-1’ short term is- down in asset growth expected in planned expansion,” it added. Whilst this new expansion strategy entails execu- suer ratings and ‘Prime-1(cr)’ short its domestic market,” it said, add- Doha Insurance’s risk-adjusted capitalisation re- tion risk, it is mitigated by the experience of the term CR Assessment. ing the UK business has increased mains very strong, benefiting from low underwrit- senior management hired to run this division, A The outlook on the long-term the contribution of retail operations ing leverage and a robust reinsurance panel that M Best said. ratings has changed to stable from towards Masraf Al Rayan’s operat- supports the company’s significant reinsurance DIC has demonstrated a track record of good positive. ing income to 22% for the fi rst six cession on commercial risks, it said. operating results, and generated a profit of The upgrade of Masraf Al Rayan’s months of 2016 from 5% for the year Although capital consumption continues to be QR110mn in 2015. Although the company re- ratings refl ects continued business 2011. driven by investment risk, due to DIC’s material ported a reduction in its net underwriting result diversifi cation as a result of growth Finding that Masraf Al Rayan’s exposure to domestic equities, it said. Neverthe- to QR79mn in 2015 from QR85mn in 2014, its loss and profi tability of the UK subsidi- current non-performing fi nancings less, the insurer holds a suff icient level of cash ratio remained resilient at 56% (51% in 2014). ary; consistently strong asset quality (NPFs analogous to non-performing and cash equivalents to support an excellent An increased expense ratio of 37% (25% in 2014), performance and strong profi tability loans) are around 0.10% of total fi - liquidity position, and has demonstrated its solid driven by the start-up costs associated with Mena and capital metrics, Moody’s said. nancing assets; Moody’s said “go- financial flexibility with a successful rights issue Re, caused the combined ratio to deteriorate to These strengths however remain ing forward, we do not expect MAR’s in the first half of 2014. 93% in 2015, considerably above the five-year moderated by the bank’s depend- NPF ratio to increase signifi cantly The agency expects DIC to maintain strong average of 85%, A M Best noted. ence on key management relation- from its current levels.” risk-adjusted capitalisation, due to good in- “DIC’s risk management is a negative rating ships to generate new business, high Moody’s also expects that Masraf ternal capital generation, and a capital buffer driver. At present, the company operates a silo degree of concentration on both the Al Rayan’s will maintain strong capi- sufficient to support the company’s planned approach to risk management, mainly managing Masraf Al Rayan’s ratings upgrade reflects continued business asset and liability side of the balance tal ratios, as healthy internal capital expansion outside Qatar, via its newly estab- underwriting and credit risks independently,” it diversification as a result of growth and profitability of the UK sheet and the impact of tightening generation supports the needs of fu- lished managing general agent (MGA), Mena said. subsidiary, consistently strong asset quality performance and regional liquidity on Its funding pro- ture - although decelerating - asset strong profitability and capital metrics, Moody’s said. fi le. growth. Gulf Times 2 Friday, August 26, 2016 BUSINESS

Mideast industrial firms urged to fortify cyber defences as breach threats grow

Industrial companies – especially in more than twice in the last 12 months, globally since 2011, with most standards, policy and governance, the energy, manufacturing, utilities the report said. occurring in the energy sector. leadership and culture, planning and and transportation – in the Middle East Cyber-attacks against oil and gas firms “The path to success lies in ensuring operations, and management and are facing risk of cyber-attacks, thus in the Middle East made up more a comprehensive approach that budgeting. The report recommends calling for an incremental approach than 50% of registered occurrences enables stakeholders to collaborate in an incremental approach that focuses that focuses on high-impact, low-cost in the region, according to Repository addressing shared, multidimensional on high-impact, low-cost initial steps, initial steps, while providing the of Industrial Security Incidents data. cyber issues,” said Dr Mahir Nayfeh, while providing the foundation for a foundation for a long-term strategy, Conversely, in the US and other senior vice-president at Booz Allen long-term strategy. according to Booz Allen Hamilton Western countries, they account for Hamilton. “The GCC leaders who successfully report. fewer than 30% of recorded instances. Mitigating risk requires more than collaborate with relevant key In a 2015 survey of 314 organisations Industrial sectors such as energy, just tuning firewalls and applying stakeholders to create an integrated operating ICS (industrial control manufacturing, utilities and patches; it also involves investing vision for cyberspace will help to systems) around the world, 20% of transportation are amongst the most in human capital, and training on ensure continued economic growth in whom are based in the Middle East, at risk. The ICS Cyber Emergency policies and procedures, he said, the region, and will establish a global Cyber-attacks against oil and gas fi rms in the Middle East made up over 100 respondents indicated that Response Team has reported more adding all facets of the cyber domain standard for other developing regions more than 50% of registered occurrences in the region, according to their control systems were breached than 800 cyber security incidents must be considered: Technology and to emulate,” according to Nayfeh. Repository of Industrial Security Incidents data

Sky Prime Egypt economic crisis weighs granted Saudi licence for heavily on heritage: Minister domestic Reuters Cairo fl ights

gypt cannot aff ord to keep its Reuters museums open let alone search Dubai Efor ancient buried treasures be- cause of the economic crisis, the antiq- uities minister says. ky Prime Aviation Serv- Tourism, a mainstay of the economy, ices has become the latest has been hit hard since the 2011 revo- Saviation company in Saudi lution that overthrew Hosni Mubarak, Arabia to be awarded a national with many of Egypt’s renowned his- air operator licence under an on- torical sites, from the pyramids at Giza going liberalisation of the king- to the Valley of the Kings in Luxor, suf- dom’s aviation market. fering a decline in foreign visitors. The company, which provides “We have over 20 museums that have private jets, received the licence been closed down since the January 25 for chartered fl ights from Min- Revolution and we do not have the re- ister of Transport Sulaiman al- sources to run them,” Khaled al-Anani Hamdan during a ceremony in told Reuters in an interview. Riyadh, according to its Twitter His ministry is meant to be self- feed. It will launch fl ights at the suffi cient and not supposed to receive end of 2016, it said. funds from the state budget. It is the third air operator to In 2010 the ministry made 1.3bn be given permission to launch in Egyptian pounds ($146.40mn) a year; the kingdom in recent months in 2015 income was down to 275mn after Nesma Airlines and Sau- pounds. diGulf Airlines. “That’s a little over 20mn pounds a The aviation sector is one of month. I have to pay 80mn a month in many areas the government is salaries alone, “ al-Anani said. keen to strengthen as part of its He says that without a revival in 2030 vision, which aims to lower tourism none of his new projects, such the kingdom’s dependence on oil. as the introduction of year-long muse- Previously, only national car- ums and heritage site passes or extend- rier, Saudi Arabian Airlines, and ing opening hours will have the desired budget operator, National Air eff ect. Souvenir vendors wait for tourists in front of the Giza pyramids on the outskirts of Cairo on March 2, 2016. Tourism, a mainstay of the economy, has been hit hard since Services, were allowed to serve a Neither will reopening Pyramid the 2011 revolution that overthrew Hosni Mubarak, with many of Egypt’s renowned historical sites, from the pyramids at Giza to the Valley of the Kings in Luxor, suff ering domestic market of about 27mn Complex of Unas, built for Pharaoh a decline in foreign visitors. people. Foreign carriers could fl y Unas, the ninth and fi nal king of the in and out of Saudi Arabia, but Fifth Dynasty in the mid 24th century $248mn needed came from a Japanese smuggling, eff orts for which had stalled and is thought to be Tutankhamun’s hind the walls” and Reeves believes the not within it. The Saudi authori- BC, which has been closed since 1998 loan years ago. since the year 2000. stepmother. Confi rmation of her fi - mausoleum was originally occupied by ties began accepting applica- for fear of overcrowding and which al- Financial woes also aff ect excavation Before al-Anani was appointed in nal resting place would be the most Nefertiti and that she had lain undis- tions to allow other airlines to Anani reopened in May. attempts, which have seen a steep de- March, his predecessor supported remarkable Egyptian archaeological turbed behind a partition wall. operate internal fl ights in 2012. Still, Egypt plans to partially open cline since 2011, he said. Other issues British Egyptologist Nicholas Reeves’s fi nd this century. An analysis of radar The most minor of incisions in the Qatar Airways, through its the Grand Egyptian Museum, an am- include a lack of international law ex- investigation of the hypothesis that a scans done on the site last November wall could wreak damage to an inner subsidiary for the Saudi market, bitious planned museum of Ancient perts at the ministry to help claim back secret chamber, believed by some to be has revealed the presence of two empty chamber that may have been hermeti- Al Maha Airways, also received Egyptian artefacts that will be the Egyptian artefacts that were smug- the lost burial site of Queen Nefertiti, spaces behind two walls in King Tut’s cally sealed for so many years, however. an initial carrier licence in 2012 world’s largest archaeological museum, gled to other countries or claimed by may lie behind King Tutankhamun’s chamber. “I did intend to open up the tomb but but has yet to be given fi nal ap- in 2017, said al-Anani, bringing forward the country’s former colonial masters tomb. Former minister Mamdouh al- only if a second radar scan showed 100 proval to operate fl ights in the the scheduled opening date by a year. as well as the need to create a central- Anani is cooler on the topic. Damaty said in Novemeber there was % that there were empty spaces which kingdom. This is only possible because the ised database of antiquities to combat Nefertiti died in the 14th century BC a 90% likelihood of “something be- it did not,” al-Anani said. Industrials, insurance, banking stocks weigh on Qatar bourse Saudi shares keep falling

By Santhosh V Perumal Industrials stocks shrank 0.84%, Local retail investors turned net Business Reporter insurance (0.63%), followed by buyers to the tune of QR6.79mn banks and financial services compared with net sellers of as economy concerns rise (0.5%), telecom (0.23%), real QR15.83mn the previous day. The Qatar Stock Exchange estate (0.13%), consumer goods Total trade volume rose 21% to was back in the negative turf (0.08%) and transport (0.02%). 4.01mn shares, value by 8% to Reuters yesterday as its key index lost More than 68% of the equities QR179.73mn and deals by 20% Dubai 51 points, mainly dragged by were in the red with major to 3,552. an across-the-board selling, losers being Qatar Electricity The telecom sector’s trade particularly in industrials, and Water, Industries Qatar, Gulf volume more than doubled ost Gulf stock mar- insurance and banking stocks. International Services, Mesaieed to 0.91mn equities, value kets fell yesterday with Notwithstanding stronger Petrochemical Holding, QNB, soared 30% to QR25.25mn and MSaudi Arabia sliding for buying interests of foreign Qatar Islamic Bank, Doha Bank, transactions by 20% to 542. a fi fth straight day, led by banks, institutions and bullish outlook Ooredoo, Ezdan and Mazaya The transport sector saw an but UAE bourses were fi rm. of local retail investors, the Qatar; even as Barwa, Nakilat 85% surge in trade volume to Egypt sank as blue chip Oras- 20-stock Qatar Index fell and Vodafone Qatar bucked the 0.24mn stocks, 22% in value to com Telecom Media and Tech- 0.46% to 11,134.81 points amid trend. QR9.49mn and 40% in deals to nology Holding reported a loss. expansion in trading turnover GCC (Gulf Cooperation Council) 226. The Saudi index, which on and volumes. institutions turned net buyers to The consumer goods sector’s Wednesday fell below minor Domestic institutions were the tune of QR20.21mn against trade volume shot up 76% to technical support on the April increasingly net sellers and their net sellers of QR5.22mn on 0.3mn shares, value by 59% to low of 6,066 points, sank 0.9% Gulf counterparts turned bearish Wednesday. QR18.02mn and transactions by yesterday to a six-month closing in the market, which is however GCC (Gulf Cooperation Council) 83% to 382. low of 5,977 points. up 6.76% year-to-date. institutions turned net sellers to There was a 37% expansion in Turnover was thin; this week’s A trader monitors stock information at the Saudi Stock Exchange (Tadawul) in Riyadh. The Saudi index, Islamic stocks were seen gaining the tune of QR1.08mn against the industrials sector’s trade volume was the lowest in 2016. which on Wednesday fell below minor technical support on the April low of 6,066 points, dropped 0.9% slower than the conventional net buyers of QR20.21mn. Non- volume to 0.78mn equities, 41% That is partly because summer yesterday to a six-month closing low of 5,977 points. ones in the bourse, where Qatari individual investors were in value to QR47.18mn and 39% holidays have kept retail inves- banking, telecom and industrials also net sellers to the extent in deals to 911. tors away. Retail investors were also cause of its diversifi ed economy 0.2% as blue chip Aldar Proper- stocks together constituted of QR2.68mn compared with The banks and financial services Investors are also worried concerned by tensions between and Abu Dhabi’s huge fi nancial ties added 1.5%. more than 67% of the total net buyers of QR4.02mn on sector’s trade volume was up 2% about the impact on corporate Saudi Arabia and Iran, he added. reserves. In Egypt, the index fell 1.1% trading volume. Wednesday. to 1mn stocks, value by 12% to earnings of Saudi Arabia’s eco- Al Rajhi Bank slid 2.3%. Dubai’s index closed 0.3% as Orascom Telecom, the most Market capitalisation eroded Domestic institutions’ net QR56.35mn and transactions by nomic slowdown due to low oil Investors are fretting about higher as GFH Financial, the heavily traded stock, dropped 0.48%, or about QR3bn, to profit-booking strengthened to 8% to 992. prices. the impact of a severe slump in most heavily traded stock and 1.7%. It reported a net loss QR595.48bn as mid, large, QR25.9mn against QR23.33mn However, the insurance sector “Liquidity is very poor. To the Saudi construction sector on a speculative favourite of local of 3.635mn Egyptian pounds small and microcap equities fell the previous day. reported a 67% plunge in trade complete relatively small sell or- the quality of bank loans. retail investors, surged 3.0%. ($409,000) for the fi rst half 0.69%, 0.52%, 0.12% and 0.11% The GCC individual investors’ volume to 0.1mn shares, 67% in ders, traders are being forced to Cement shares, exposed to the Emirates NBD lost 0.6%. of this year, though revenues respectively. net buying weakened marginally value to QR8.54mn and 20% in push prices lower. construction industry, were also Sources told Reuters on rose to 213.285mn pounds from The Total Return Index shed to QR0.41mn compared to deals to 128. And because of weak senti- weak with Yamamah Cement Wednesday that Emirates Is- 129.316mn pounds a year ago. 0.46% to 18,015.39 points, the All QR0.8mn on Wednesday. The real estate sector’s trade ment, buyers are not being at- dropping 3.8%. lamic, the Shariah-compliant Elsewhere in the Gulf, Ku- Share Index by 0.45% to 3,061.19 However, non-Qatari institutions’ volume shrank 7% to 0.68mn tracted despite the lower prices,” After early drops, markets arm of ENBD, had laid off more wait’s index edged down 0.1% points and the Al Rayan Islamic net buying strengthened to equities, value by 18% to Akber Khan, senior director for in both Dubai and Abu Dhabi than 100 people as part of cost- to 5,429 points; Oman’s index Index by 0.19% to 4,206.21 QR22.45mn against QR14.13mn QR14.9mn and transactions by asset management at Qatar’s Al closed higher; the UAE is widely cutting to adjust to a cooler dropped 0.5% to 5,823 points, points. on August 24. 12% to 371. Rayan Investment, said of the seen as more resilient to low oil economy. while Bahrain’s index fell 0.6% Saudi market. prices than Saudi Arabia be- Abu Dhabi’s index edged up to 1,146 points. Gulf Times Friday, August 26, 2016 3 BUSINESS

Sections of the Bratstvo (top) and Soyuz gas pipelines cross a river near Ivano-Frankvisk, Ukraine. Europe gas prices barely flickered last week when Ukraine, the largest transit country for Russian gas to the EU, warned of the potential for full-out war with its eastern neighbour and Europe’s biggest supplier. Threat of war, earthquakes, Brexit can’t stop gas plunge

Bloomberg biggest supplier. Traders had already shrugged three weeks since at least April 2015. Gas traders and network operators are also cu m, 70bn cu m higher than consumption, London off the Netherlands’ decision to restrict Front-month Dutch gas fell for the second confident supply needs will be met through according to BP data. That’s the biggest surplus output at Europe’s largest gas field because of day, sliding 0.7% by 11.16am in London. The the expansion of liquefied natural gas trading. in at least a decade. earthquakes, Britain’s vote to leave the EU and equivalent UK contract was little changed after Last year, about $120bn of LNG was physically With climate concerns, gas producers are Even after three years, there’s still no sign that the region’s widespread opposition of fracking having the biggest intraday decline since 2010 bought and sold, making it the second-largest hoping demand for the fuel will be higher, the slump in European natural gas prices is to extract the fuel. on Friday. commodity transacted globally, surpassing iron serving as a replacement for more- polluting about to end. “The impact of these political issues on pricing Part of the downturn has been due to a two-year ore, according to Christian Lelong, a New York- coal. So far, better margins at coal plants, energy Front-month contracts for the fuel are trading has been minuscule,” said Mark Devine, the slump in oil that ended last year, said Devine at based analyst with Goldman Sachs Group Inc eff iciency and warm weather have kept the need near six-year lows in the Netherlands and UK, director of Energy Trading Consultancy Ltd Energy Trading Consultancy. About half of gas Producers were expected to add 50mn metric for gas muted. while Citigroup to Marex Spectron Group and in Yarm, England, and a former gas trader at contracts in Europe are linked to the price of tonnes of LNG capacity by the end of the year, EU gas consumption fell 19% in the decade Vattenfall AB predict further declines. The slump Norway’s Statoil. “In short, we have a bit of a crude with a six-to-nine month lag, which fell 35% equivalent to a fifth of current global demand, through 2015, BP data show. Coal demand seems made of Teflon; since 2013, benchmark supply glut that’s more influential.” in 2015 before rising more than 30% this year. according to Sanford C Bernstein & Co. Some declined 17% in the same period and usage is gas rates have brushed off a run of political and UK gas prices for 2017 may fall closer to $4 per Large gas producers outside the EU are fighting of those projects have been delayed, meaning forecast to fall further this year. environmental dramas that would normally lift million British thermal units from more than $5 for market share by expanding exports. Russian global gas markets haven’t felt the full eff ect of While rising coal costs may help lift demand prices and instead tracked a deepening global amid an expanding supply glut, Ed Morse, head shipments into Europe rose 14% in the first half oversupply yet, Citigroup’s Morse said. for gas, prices will by capped by overhanging oversupply. of commodities research at Citigroup, said in from a year earlier, and Norwegian supplies to “As LNG supply from the US increases, alongside supply, said Jip van Krimpen, a gas portfolio Prices barely flickered last week when Ukraine, a note on Monday. Marex Spectron, a London- the UK are 21% above the five-year average. The growth from Australia and elsewhere, global manager at Vattenfall Energy Trading in the largest transit country for Russian gas to based energy broker, underlined its bearish extra imports have neutralised the influence of natural gas prices could buckle under the glut,” Amsterdam. the EU, warned of the potential for full-out view on gas last week, while traders surveyed declining output in the EU, where production Morse wrote. “With the global glut in gas, any price increase war with its eastern neighbour and Europe’s by Bloomberg have forecast declines in all but has fallen to its lowest level since 1971. Worldwide gas production in 2015 was 3.5tn will quickly be arbitraged out,” he said.

Bloomberg QuickTake Liquefied natural gas: Fuel of the future

By Christine Buurma Asia tumbling from a record in 2014, that currently comes in the form of prompting delays and cancellations LNG, though it accounts for half of of new plants. At the same time, new gas capacity. More projects are demand for LNG is faltering as Japan being considered to ship gas from Natural gas has a lot going for it. It restarts its nuclear reactors and large fields in Mozambique and Iran. burns cleaner than other fossil fuels, China’s economic growth slows. The biggest turnaround has come in producing about half the carbon LNG is also competing with cheaper the US, where hydraulic fracturing, dioxide of coal. Thanks to new coal and renewables. Even so, more or fracking, has transformed the discoveries and the US shale boom, countries are trading in LNG, with 34 country from an importer to an it’s cheap and plentiful. But there’s nations importing it and 19 exporting exporter of natural gas. It has also a catch: Gas is tricky to transport it by the end of 2014. Jordan, Egypt made LNG easier to trade: While from the often-remote fields where and Pakistan are turning to LNG to Asian cargoes have traditionally it’s found to where it’s needed. In fuel electricity generation as prices been sold under long-term contracts many places, pipelines simply aren’t fall and import terminals become with limits on where vessels can be practical. The solution? Turn the gas less expensive to build. The gas is sent, US shipments are free of such into a liquid by super-cooling it to also used to power ships and trucks. restrictions. minus 162 degrees Celsius (minus In Europe, shifting to LNG is critical The Argument 260 degrees Fahrenheit). Liquefied for countries such as Lithuania and natural gas, known as LNG, can be Poland that are looking to escape More nations have shifted to LNG loaded on ships and transported the pipeline politics of buying gas as a way to reduce greenhouse gas around the world. This high-tech from Russia. LNG is also off setting emissions. Demand for the fuel will be process has transformed natural gas dwindling gas output from the North driven by how quickly countries turn into a more freely traded commodity Sea. to gas in a bid to displace coal as the with the potential to reshape the The Background largest source of power generation. politics of global energy. Is LNG the Big oil companies have pushed into fuel of the future? Commercial LNG shipments began LNG as a way to embrace cleaner The Situation in 1964 with regular cargoes from energy and tap new markets. Shell’s Algeria to the UK and France. The $53bn acquisition of BG Group this The global trade in LNG has become global fleet now includes more than year — the industry’s biggest deal easier with the June expansion 400 vessels, the biggest as long as in a decade — included a fleet of of the Panama Canal, which can almost four American football fields. tankers and made the Dutch giant accommodate most of the world’s LNG is a capital-intensive business: the world’s largest LNG trader. Still, tanker fleet for the first time. A slew Tankers cost about $250mn, and the American Public Gas Association, of LNG plants in Australia and the building a terminal for import an organisation of municipal-owned US are coming online over the next or export is a multibillion-dollar natural gas utilities, opposes large- few years, as investments made in undertaking. Qatar is the world’s scale US exports because sending an era of higher energy prices reach biggest producer of LNG, with about gas overseas could raise prices for completion. Global LNG production three-quarters of the fuel sold to consumers at home. What’s more, is forecast to expand by about 50% energy-poor Asian countries such as the supply glut means that more than by the end of the decade, adding to Japan and Korea. Natural gas supplies half of the 38 LNG terminals proposed a market that’s already oversupplied. about a fifth of world energy, and its in the US by 2015 will likely never be That’s sent the spot LNG price in use is growing. Only about 10% of built. Source: Bloomberg New Energy Finance Gulf Times 4 Friday, August 26, 2016 BUSINESS

Majority of analysts Dreamliner engine incident see BoJ easing in September prompts ANA to check fl eet Reuters Tokyo/Bengaluru

Bloomberg Tokyo A majority of economists expects the Bank of Japan will ease policy further next month, NA Holdings, the world’s big- a Reuters poll found, while gest operator of Boeing Co’s many respondents suspect a ADreamliner jet, is checking the change in its inflation target Rolls-Royce Holdings engines on its terminology is likely. fl eet of 787s after investigating a Feb- But about 40% of analysts ruary incident when an aircraft had to surveyed said they expected shut down a power plant and return to the central bank to keep the airport. monetary policy unchanged, Japan’s largest airline, with a fl eet showing analysts’ expectations of 50 Dreamliners, has cancelled nine are close to evenly divided. fl ights with the jets Friday and may have Faced with stubbornly low in- to scrap more than 300 more through flation and new fiscal spending the end of September, Takeo Kikuchi, by Prime Minister Shinzo Abe, a deputy senior vice president of engi- the BoJ increased its purchases neering & maintenance, told reporters of exchange-traded funds (ETF) in Tokyo yesterday. ANA is changing in July and said it would review medium pressure turbine blades on the its policies in September, steps planes, Kikuchi said. that fell short of expectations. The issue, ANA’s biggest with the BoJ governor Haruhiko model since a 2013 global grounding Kuroda was quoted on Saturday of the entire Dreamliner fl eet, came saying that negative interest to the fore after fi nding corrosion on rate policy had not reached the turbine blades that had led to an its limits and the central bank aircraft having to shut down a power would consider whether to plant. That jet had to return to Kua- make any changes to its ¥80tn la Lumpur airport after receiving a ($798bn) per year asset-pur- warning that the temperature of the chase plan next month. exhaust gas from its right engine was Asked how the September re- very high. view might influence BoJ policy ANA encountered the issue of cor- decisions, 14 of 24 economists rosion in turbine blades thrice since said it would lead to further February, Kikuchi said. Rolls-Royce easing, nine saw no change, and will start supplying ANA with modi- one expected a tapering of the fi ed versions of the turbine blades from BoJ’s stimulus drive, the poll January and the carrier will replace the taken on August 16-24 found. current blades in all its planes, Kikuchi A Boeing 787-9 jet, ready for delivery to ANA Holdings, is seen at a centre in Everett, Washington. The Japanese airline, the world’s biggest operator of Dreamliner jet, is Yoshimasa Maruyama, chief said. checking the Rolls-Royce engines on its fleet of 787s after investigating a February incident when an aircraft had to shut down a power plant and return to the airport. market economist at SMBC ANA, the launch customer for the Nikko Securities, said the BoJ 787, has been in talks with Rolls-Royce 12:30 pm in London. Rolls-Royce said pects to lose ¥55mn ($548,000) from for the problem, allowing the planes to engines to keep away from certain was likely to slightly tweak its on problems with the engines since it’s aware of the ANA situation and is tomorrow’s cancellations. The com- resume fl ights. The global grounding weather. current quantitative easing March, Kikuchi said late yesterday. working with the airline to minimise pany doesn’t know the total fi nancial marked the fi rst time in more than three Japan Airlines, also known as JAL, programme and negative rate ANA’s entire fl eet of 787s are powered the eff ect on service disruption. Boe- impact of the problem at this time, he decades when an entire airplane model uses diff erent engines and doesn’t policy. by Rolls-Royce engines. The only other ing didn’t respond to an e-mail seeking said. was pulled out of service. have any problems with them at this “It could include a change engine option for customers are motors comment. All 787s worldwide were grounded The same year, Japan Airlines Co, time, said Jian Yang, a spokesman for of its monetary base target from General Electric. The carrier has had three problems for three months by regulators in 2013 the nation’s second-largest airline, the carrier. The icing issue with the GE to make a range and increase Rolls-Royce shares fell as much as with the engines that have aff ected after lithium-ion battery meltdowns replaced 787s on two routes after Boe- engines was resolved earlier this year, corporate bond purchases,” 2.2%, and was trading down 1.9%, as of fl ights, Kikuchi said, adding that it ex- on the jets. Boeing came up with a fi x ing ordered Dreamliner jets with GE he said. he said. “The central bank is likely to freeze its minus 0.1% negative rate.” Economists who pencilled in easing for Septem- ber were, however, split on what precise steps the BoJ was likely to take. China’s big P2P platforms shrug off crackdown Two economists nominated a further deepening of negative interest rates while two others Reuters less than two years from more than opted for an expansion of com- Hong Kong 900,000 retail investors. The dialogue mercial paper and corporate with government has given platforms bond buying. the opportunity to start preparing for Four said the central bank hina’s bid to tame its peer-to- the changes, and they have a year’s would combine additional asset peer (P2P) lending sector could grace to implement some of them. purchasing and a deepening of Ccost smaller platforms some “At the beginning of last year we negative rates. business, but the impact on larger play- started to transform our business mod- Six economists said they ex- ers will be limited, and some of the new el from SMEs to individuals, so now pected the BoJ would overhaul restrictions will be hard to enforce, an- more than half of the loans we match its current policy framework. alysts and industry players said. are under this 200,000 yuan limit,” Fifteen of 28 analysts who Regulators unveiled a series of meas- said Xie Qun, CEO of P2P platform answered a separate question ures on Wednesday night to head off Jimubox. in the latest survey said the BoJ signs of rising risks in its fast-growing “We’re confi dent with this one-year would adopt flexible terms on P2P market, including borrowing limits grace period, we’ll be able to convert the timing for reaching its infla- and forcing P2P platforms to use third- all this business to be compliant,” he tion target. party banks as custodians of investor added. Several lenders already seg- Three said it would switch its funds. regate investors’ funds into custodial policy to target interest rates China’s P2P and online fi nance in- accounts with banks to prevent fraud, instead of the monetary base, dustry has boomed in recent years, but while for companies like Lufax, a typi- while the remainder opted for growth is slowing after a series of scan- cal unsecured loan would be in the other means such deepening dals and multi-billion dollar failures. 100,000 yuan to 200,000 yuan range, negative interest rates. The regulator’s announcement below the government cap. “There is a chance that the knocked 22% off the New York-listed Industry offi cials said borrowers BoJ will no longer state a spe- shares of Chinese P2P lender Yirendai and lenders were in any case likely to cific time to meet its price target Ltd overnight, while Chinese stocks fi nd ways around the caps. “If you look and will change the timeframe fell to a two-week low yesterday, at how China’s internet market has target to a mid – to long-term weighed by banking shares on con- platform is good, but now they can which often struggle to get credit from 1.5tn yuan by the end of 2018. worked historically, people always fi nd objective” said Takumi Tsunoda, cerns over the crackdown on riskier understand it. Investors will defi nitely banks and other mainstream fi nancial P2P lenders have been discussing a way,” said Simon Loong, founder and senior economist at Shinkin lending practices. withdraw money from the platforms institutions. new rules with the government for sev- CEO of WeLab, which operates a P2P Central Bank. But many larger P2P companies in- which are violating the rules,” said Cliff The volume of P2P loans surged eral months in a bid to improve senti- platform in Hong Kong and Chinese “In that case, the BoJ won’t cluding Lufax, Yirendai, PPDAI and Di- Zhang, chief executive of China’s old- more than 20 times to 656.8bn yuan ment toward the sector, which took a mobile lending platform Wolaidai. come under pressure to ease anrong.com, say they already comply est P2P lender PPDAI. ($98.7bn) at the end of July from just big hit earlier this year when Ezubao, “I don’t mean to try to beat the sys- policy every time it cuts infla- with many of the new requirements, so China’s government for years main- 30.9bn yuan in January 2014, according once China’s biggest P2P lending plat- tem, but people try to adapt their busi- tion forecasts.” The poll’s con- could benefi t from the restrictions. tained a hands-off approach to pro- to industry data provider Wangdaizhi- form, folded. ness model, fi nd a way to survive with sensus was for the BoJ to keep “Before the rules were released, peo- mote alternative sources of funding jia. Nomura estimates that could reach Ezubao turned out to be a Ponzi the customer base or information data its 0.1% interest rate steady this ple didn’t have judgement on which for consumers and small businesses, 880bn yuan by the end of 2016 and scheme that solicited 50bn yuan in they’ve already collected.” year and the next.

As Welspun awaits Wal-Mart review investors brace for worst

Bloomberg under the Fieldcrest label as premium Welspun India’s stock fell 10% yes- Welspun is a big player in Indian tex- $25bn for Vietnam and China’s domi- birthday party, pictures of the indus- Mumbai Egyptian cotton products. terday, the fourth consecutive session tiles, and says it produces one in fi ve nant $298bn, according to the latest trialist over the years were put up on a Target took dramatic action, termi- it dropped by the daily limit, taking the towels sold in the US. It supplies the big- World Trade Organisation data. Mean- life-size board and the two-tier cake nating all business ties to Welspun and losses this week to 48%. In all, about gest retailers there, including Bed Bath while, manufacturers face rising prices was topped by a vintage automobile, elspun Group chairman off ering customers refunds. This week, $740mn in market value has been va- & Beyond and Macy’s Inc. It’s part of the as the global cotton supply tightens. according to an Economic Times ac- Balkrishan Goenka earlier Wal-Mart Stores and JC Penney Co porised along the way. Welspun Group, a $3bn conglomerate While futures in New York have re- count of the celebration. Wthis month celebrated his have announced reviews of the compa- “There has been a failure on our part, headed by Goenka with interests span- treated from a two-year high reached Target didn’t mince words in its Au- 50th birthday in grand style, with a ny’s products and cotton certifi cation without an ambiguity,” Welspun man- ning textiles, steel, pipes, energy and on August 5, prices are still heading for gust 19 statement in which it ended bash at the fi ve-star St Regis Hotel in records, while Bed Bath & Beyond Inc aging director Rajesh Mandawewala infrastructure. About 95% of the unit’s a second annual advance. Cotton fu- its business ties to Welspun, nor did it Mumbai. Party- goers hit the dance said it appointed an independent third told analysts during a conference call sales last fi scal year came from overseas tures in New York traded at 67.40 cents reveal how it uncovered the problem. fl oor to the pulse of classic Bollywood party to audit its supply chain. The on Monday. “The error is on our side so exports, with the US a key market, it a pound yesterday, up 6.5% this year. “This was a clear violation of both Tar- tunes and feasted on Indian and West- mishap comes at an inopportune time we have to take responsibility for it.” said. Modi’s stimulus package for textile Goenka skipped college, according get’s Code of Conduct and our Stand- ern cuisine as well as a massive cake in for Prime Minister Narendra Modi, who Welspun has launched an internal and garment makers includes subsidies to a CNBC-TV18 report, and launched ards of Vendor Engagement, and was the industrialist’s honour. in June unveiled a nearly $1bn package audit into its manufacturing process for hiring, tax refunds and relaxation of Welspun in 1985 with a textile manu- contrary to the high ethical standards This week has been far less festive for textile and garment makers to drive and sourcing. Analysts pressed Man- overtime rules. He hopes to create 10mn facturing plant in Palghar near Mum- to which we hold ourselves, and our for Goenka and Welspun India Ltd, the jobs growth under his “Make in India” dawewala about why Target was sever- jobs and boost exports by $30bn in the bai. By 2000, the company had a pro- vendors,” the statement said. textiles unit of his conglomerate that’s campaign. ing its entire business relationship with next three years. duction facility in the US and a joint On Monday, Welspun’s Mandawe- run by his wife, Dipali. The maker of “The Welspun issues show the whole Welspun – worth $90mn a year – over a At the moment, India is locked in venture with Vincenzo Zucchi SpA in wala said the company is rigorously bedding, towels, rugs and carpets is industry in a very bad light,” said San- dispute about a premium sheet product a pitched market share battle with its Italy. Six years later, Welspun diversi- reviewing what went wrong. “We are now caught up in a spin-cycle of nega- jiv Bhasin, executive vice president for that only made up 10% of the goods it Asian neighbours in the global textiles fi ed into oil and natural gas exploration taking this issue very, very seriously,” tive publicity. On August 19, Target markets at India Infoline Ltd, a Mumbai sources from the Indian manufacturer. market. India’s overseas textile ship- through a tie-up with the Adani Group. he said. “We want to make sure that our Corp said that Welspun had mislabelled brokerage. “The overseas retailer will “It’s very diffi cult for me to react to ments reached about $36bn in 2014, These days, Goenka is something of supply system and processes are ex- 750,000 sheets and pillow cases sold now be very discerning.” this,” said Mandawewala. compared with $27bn for Bangladesh, a business luminary. At the August 12 tremely robust going forward.” Gulf Times Friday, August 26, 2016 5 BUSINESS

Alibaba’s fi nance Chinese banks urged to affi liate Alipay is spread out loan tenors planning HK IPO Reuters Shanghai in 2017 hina’s central bank has urged banks to spread out the tenors Bloomberg Cof their loans, hinting at its dis- Hong Kong pleasure with a recent trend of banks focusing on overnight lending, banking sources told Reuters yesterday. libaba Group Holding’s Imbalances in China’s fi nancial sys- finance affiliate is con- tem are increasing as the economy Asidering an initial public slows, complicating challenges facing offering in Hong Kong in the policymakers as they try to clamp down first half of next year after run- on riskier lending practices without ning into regulatory hurdles for roiling markets. a dual listing that would have The People’s Bank of China (PBoC) included Shanghai, accord- met with major banks on Wednesday ing to people familiar with the to discuss management of liquidity matter. in Chinese money markets amid ris- Mainland China’s restric- ing speculation over whether Beijing tions on stock options are would continue its monetary policy discouraging Zhejiang Ant easing or not, the sources said. Small & Micro Financial Serv- The PBoC declined comment, but has ices Group Co from its original clearly taken aim at the risks of short- plans for the dual listing, said term lending in a series of moves this the people, asking not to be week. named because the matter is In particular, traders said the central private. A Shanghai IPO hasn’t bank may be worried that too many been completely ruled out yet small banks are using short-term bor- and the company could con- rowing to fund speculative bets in the sider a mainland offering later, bond market. the people said. “Banks’ overnight lending in the Ant Financial controls Chi- money markets has stood around 90% na’s biggest online payment of their total (money market) lend- service, Alipay, and was valued ing since the start of this year,” said a at $60bn in the latest fund- source, who declined to be identifi ed raising. Its IPO would likely because he was not authorised to talk to be among the biggest ever for media. Hong Kong, though the spe- To take the lead to encourage banks A pedestrian walks past the People’s Bank of China in Beijing. The PBoC met major banks on Wednesday to discuss management of liquidity in Chinese money markets cific amount to be raised hasn’t to lend for longer periods of time, the amid rising speculation over whether Beijing would continue its monetary policy easing or not, the sources said yesterday. been decided, the people said. central bank injected cash into money It would also be the latest blow markets through 14-day reverse repo cooled to 25-year lows, Beijing appears The PBoC has not cut reserve re- only inject large amounts of longer- recent days. Prior to this week, liquid- to China’s exchanges, which agreements for the fi rst time since Feb- reluctant to pursue further broad-based quirement ratios (RRR) at banks since term cash if it sees a real need. ity in China’s fi nancial system had been have been roiled by volatility ruary on Wednesday, in addition to em- monetary policy easing amid worries March, and has not lowered long-term The central bank also told banks that described by most as ample with few and tight regulations. ploying its typical tool the seven-day that pumping too much cash into the guidance interest rates since last Octo- it would consider using reverse repos signs of stress, but money rates jumped Companies listing in Hong reverse repo. system could further boost already high ber, though it has off ered targeted funds longer than 14 days to help adjust the on Wednesday after the central bank’s Kong normally need a free float Yesterday, the bank again conducted corporate debt, put more pressure on to more vulnerable sectors. structure of lending in the money mar- 14-day cash injection. of at least 25% while those that both seven and 14-day reverse repos, the yuan currency and create specula- At the Wednesday meeting, the PBoC kets, the sources said, declining to give By yesterday evening, the volume meet certain size criteria can adding 220bn yuan ($33.05bn) of money tive bubbles in property and fi nancial told banks that it would keep its mon- further details. weighted average of the seven-day seek approval to sell as little as market liquidity in the largest single- markets. etary policy stance basically unchanged Analysts say rising leverage in the repo was down one basis point (bps) to 15%. A 15% stake in Ant Finan- day injection since June 27 to ease fears A growing number of economists be- – wording that traders believed implied short-term repo market helped drive a 2.49%, just below Wednesday’s aver- cial would be worth about $9bn of a credit crunch. lieve that a massive bank bailout may be that the central bank would maintain bull run in Chinese onshore bonds this age close which was the highest since based on the most recent valu- While China’s economic growth has inevitable in China as bad loans mount. a relatively loose monetary stance but summer which has begun to derail in February. ation. China’s current rules impose restrictions on IPOs by compa- nies that have more than 200 existing shareholders, and also require all stock options to be vested in advance. Since Ant Honda pins hopes on revamped Acura NSX Financial uses options as an incentive for workers, it would need a special waiver from the Reuters and a space frame consisting of alu- country’s security watchdog, Tokyo minium, ultra-high strength steel and the people said. other lightweight materials, executive engineer and NSX project co-leader Companies listing in Hong ith its aggressive design and Ted Klaus said the NSX marked a turna- Kong normally need a free six-fi gure price tag, Honda round in the company’s engineering di- fl oat of at least 25% while WMotor Co’s revamped NSX rection, which had begun to “narrow”. those that meet certain size is a far cry from its “cheap and cheer- “We’ve really woken up and realised criteria can seek approval ful” Civic sedans, but the automaker is that Honda has to make a Honda prod- to sell as little as 15%. A betting the sportscar launched in Japan uct. A Honda product... can’t just be 15% stake in Ant Financial yesterday will turbo-charge its brand a mental or physical thing, it has to be would be worth about $9bn image. emotional,” he said. based on the most recent The new NSX, jointly developed by Analysts said its advanced engi- valuation Honda’s US and Japanese engineers and neering and technology would help to produced in the United States, marks change Honda’s image. “Once upon a A listing in Shanghai would the revival of the model after the auto- time ‘Honda’ was synonymous with also put the company into a maker stopped production of the “Asian ‘performance’. Now Honda is known for long line of firms waiting for Ferrari” in 2005. reliability, for sensibility,” CLSA analyst approval from the China Se- First launched in the 1990s, the mod- Chris Richter said. “(The new NSX) is an curities Regulatory Commis- el redefi ned the supercar genre by mar- attempt to redefi ne Honda and regain sion, which has become wary rying a high-performance sportscar some of the excitement about driving.” of changing regulations after a with everyday driveability. Just fi ve of the sportscars are produced tumultuous year for its domes- Starting at ¥23.7mn ($236,621.41), each day at a specialised manufacturing tic stock market. the bespoke hybrid model became plant in Ohio. Ant Financial doesn’t have a available to order in Japan yesterday, Honda has initial plans to produce timeline or place of preference having launched in the United States only about 800 of the cars for North for an IPO, company spokes- earlier this year. America in the fi rst year of production, woman Miranda Shek said by It will also be sold in Canada, China, and about 100 for Japan. phone. Europe and other regions. The automaker has been revamping Ant Financial, controlled “Generating profi t from the NSX its existing line-up to win back com- by Alibaba Chairman Jack Ma, may be a struggle, but by focussing on bined market share for Honda and Acu- completed a $4.5bn equity both functional cars and also advanced ra in North America, which has slipped fundraising round that valued performance we will raise the Honda Honda CEO Takahiro Hachigo poses in front of a new Honda NSX at its Japan launch event in Tokyo. Generating profit from below 10% in the past few years. the owner of Alipay at about brand,” Honda CEO Takahiro Hachigo the NSX may be a struggle, but by focussing on both functional cars and also advanced performance we will raise the Honda North America is a key market for the $60bn, people familiar with said at the launch. brand, Hachigo said. automaker, accounting for more than the matter said in June. Marketed under the Acura badge, one-third of global vehicle sales. Besides Alipay, Ant Financial Honda’s stalled premium brand in the Japanese automaker to reclaim its repu- due in part to “play-it-safe” designs. electric motors and a twin-turbo V-6 Early signs suggest promise, with a also controls the company that United States, China and other regions, tation as a leader in innovation and en- Honda beefed up the model with a engine approaching the power of a Fer- new version of the Civic sedan selling manages Yu’E Bao, the nation’s the NSX marks the latest eff ort by the gineering after a spell of sluggish sales hybrid powertrain consisting of three rari. Encased in an aluminium body briskly in North America. largest money-market fund. Energy company problems expose cracks in Singapore bond market

Reuters volatile, high-yielding oil and gas services’ is currently eff ectively shut to new sales investor base... have exacerbated liquidity bond experts say, which means off load- on the condition of anonymity due to the Singapore firms, and by 2014 they were making 17% by higher-risk borrowers. The problems concerns over the past several months,” ing bonds is not easy. Even some of the sensitivity of the subject. Investors also of local dollar issues. come at a sensitive time for Singapore’s said Todd Schubert, head of fixed income bonds sold by high-grade companies are were extended loans by private banks Bondholders got a rude awaken- financial sector, which is struggling with research at Bank of Singapore. unrated. to encourage increased participation in The collapse of an oil services company ing last month when Swiber Holdings a slow-growth economy, and as its prized The top 30 issuers in the local currency Private banking clients had been bond issues, banking sources said. and the deterioration in the finances of filed for creditor protection, making it wealth management business has been market account for around half of out- absorbing the bulk of the high-yielding The failure of Swiber has hurt Singa- some other energy firms have exposed Singapore’s biggest casualty of the oil tainted by the corruption and money standing bonds, and roughly two-third are paper despite the risks and limited disclo- pore’s biggest lender DBS Group Holdings, structural cracks in the Singapore dollar slump and raising the spectre of further laundering investigations into Malaysian either by real estate companies or finan- sure that comes with unrated bonds. which had a S$721mn exposure to the corporate bond market. failures. state fund 1MDB. cial services firms, according to estimates The illiquid state of the market also company. DBS is also the largest bookrun- The S$200bn ($148bn) market took off The shock is reflected in the absence The Singapore authorities recently took from Bank of Singapore. means that there is no motivation for ner in the Singapore dollar bond market after the 1998 Asian financial crisis with of any Singapore dollar bond sales by an unprecedented step by ordering the Many of these companies are backed sellside analysts to rate the bonds or with a 40% market share. The Singapore issues by state-backed companies, banks high-yield borrowers since early June closure of the local operations of Swiss by the Singapore government or partly- otherwise give an opinion. Exchange, where most of these bonds and real estate firms. when property company GSH Corp did a bank BSI because of its involvement with owned by state-run investment group Two people who had bought Swiber are traded, is conducting an investigation But demand from investors seeking S$60mn issue, more than half of which 1MDB. “The small size of many issues, Temasek, which enjoys a AAA rating. bonds said they did so on the advice of into the Swiber failure and said it would higher returns has in recent years led was bought by its executive chairman the lack of research of coverage and the But Singapore lacks a liquid and their private bankers, who also provided take action if breaches in disclosures are to illiquid, unrated bond sales by more and by its CEO. The city-state’s market demographics of the Singapore dollar functioning secondary market, corporate risk assessments. The investors spoke found. Gulf Times 6 Friday, August 26, 2016 BUSINESS

Ministry says Poland first in Europe to issue China RBI spurs $72bn corporate ‘Panda bonds’

AFP Warsaw bond market with new rules

Poland yesterday said it Bloomberg became the first European Mumbai country to issue government bonds on the Chinese market, opening the door to new ndia’s central bank unveiled new measures to sources of financing as Warsaw boost trading and depth in the $72bn market plans to run a record deficit Ifor local-currency corporate debt, including next year. considering use of the securities for its daily li- The Polish finance ministry quidity support to the banking system. said it had issued three- The Reserve Bank of India also said lenders can year bonds worth 3bn yuan boost support for a debt issue to 50% from 20%, (€400mn, $451mn) and denom- helping enhance the credit rating of the securities. inated in the Chinese currency, On the currency side, the central bank said entities also revealing in a statement with foreign-exchange risk can now use over-the- that earnings “were swapped counter or exchange-based instruments to hedge into euros”. their exposure up to a limit of $30mn. “After securing the neces- The measures are part of a larger parcel of reforms sary permission from Chinese aimed at deepening India’s corporate debt market regulators, we became the that is dominated by companies with the highest first European country to issue levels of credit rating. Other borrowers are forced to Polish bonds on the Chinese seek fi nancing mostly through high-cost loans from market,” a Polish finance minis- banks. Companies have raised Rs2.7tn ($40bn) of try statement said. local-currency-denominated bonds so far this year, The move comes after after borrowing a record Rs4.85tn in 2015. the Polish populist-oriented “Market participants will take more exposure rightwing Law and Justice (PiS) in corporate bonds because these notes will be ac- government said on Monday it cepted as collateral under liquidity operations,” would raise spending next year said Shashi Kant Rathi, head of investments and to just under an EU-wide limit capital markets at Axis Bank, the top arranger for of 3% of GDP, while also cutting rupee bonds since 2008. “It will also reduce the growth forecasts for central borrowing costs for companies as investors can Europe’s largest economy. use these notes to get liquidity when needed.” “Emitting bonds on the Chi- Urjit Patel, who succeeds RBI governor Ra- nese market was aimed above ghuram Rajan next month will need to continue all at diversifying our investor his predecessor’s eff orts to improve monetary base and acquiring financing policy transmission, which includes getting banks to cover this year’s loans,” the to pass on the benefi ts of previous interest-rate finance ministry added. reductions. An increase in the so-called partial The PiS won an October credit enhancement will expand infrastructure- 2015 election on promises and project-related fi nancing through bonds, said The Reserve Bank of India headquarters in Mumbai. The RBI yesterday unveiled new measures to boost trading and depth in the market for local-currency of generous social spending Rathi, who expects companies to raise close to corporate debt, including considering use of the securities for its daily liquidity support to the banking system. – including a universal child Rs5tn from the market this year. benefit scheme – raising con- The central bank said it has begun the process announced by the regulator included: Allow- kers authorised as market makers will now also negotiated dealing system and to trade directly in cerns it could bloat Poland’s of making necessary amendments to the RBI Act ing banks to issue rupee-denominated securities be allowed to participate in the corporate-bond corporate bonds. Central bank will work with the moderate public debt. to make corporate bond eligible for its liquidity overseas to meet Basel 3 capital requirements, fi - repurchase-agreement market. Foreign portfolio market regulator to introduce electronic dealing operations with banks. The additional measures nance infrastructure and aff ordable housing. Bro- investors allowed to trade on the order-matching platform for repo in corporate bonds.

Deutsche Boerse, LSE Sensex ends 2-day advance; rupee rises submit merger to EU

Bloomberg for a third time this week. The Sensex The Nifty has swung 1% or more only phone from New Delhi. “The market is regulators for approval Mumbai fell 0.8% and the NSE Nifty 50 Index twice this month as traders look for due for a decline.” lost 0.7% at the close, ending a two- clues on how aggressive the US Federal Foreign funds have bought a net day advance. The rollover rate in Nifty Reserve will be in raising interest rates, $5.8bn of local shares this year, the most Reuters a global markets infrastructure group, ndian stocks reversed gains, with August futures, which lapsed yesterday, something Fed chair Janet Yellen may in Asia after Taiwan and South Korea, as London anchored in Europe,” the exchanges benchmark gauges falling to two- was at 70% at 4:24 pm in Mumbai. That touch on when she speaks later this week capital fl ows to emerging markets ac- said yesterday. Iweek lows, as software exporters compares with a three-month mean of at a gathering of central bankers in Jack- celerated amid a wave of global policy The LSE’s LCH.Clearnet is Europe’s and industrials retreated amid expiry of 71% on expiry day, data compiled by son Hole, Wyoming. At least three Fed easing. That’s helped the benchmark Deutsche Boerse and the London main clearing house for euro-denom- monthly derivatives contracts. Bloomberg show. offi cials have made hawkish remarks gauges rebound at least 21% from their Stock Exchange Group have submit- inated swaps and that could be a con- Adani Ports & Special Econom- “Traders raised bearish bets going since the start of last week, though US lows in February, and sent a gauge of ted their $29bn merger deal to Euro- cern for the EU competition enforcer. ic Zone tumbled the most in three into the new series as the market didn’t economic data remains mixed. small- and-mid cap companies to a pean Union competition regulators Analysts say the exchanges may have months. Technology fi rms Infosys and move up decisively this month,” Nilesh “The market has been supported by record. ahead of a September 28 deadline for to off er major concessions such as Wipro were among the worst perform- Dedhia, director at NTD Trading, said by liquidity, which has been boosted by Meanwhile, the rupee appreciated a preliminary review. selling overlapping businesses. ers on the S&P BSE Sensex. Tata Steel phone from Mumbai. “The daily charts negative yields” in the developed mar- by six paise to 67.05 against a US dol- The deal, which will create the The exchanges expect the EU scru- had the steepest decline in a month. A are showing a negative divergence, kets, RK Gupta, managing director at lar from its previous close of 67.11 on world’s biggest exchange by revenue, tiny to broaden into a full investiga- gauge of medium-sized companies slid which is a bearish signal.” Taurus Asset Management Co, said by Wednesday. is likely to face tough scrutiny tion of about five months. because of the huge combined pres- Belgium, Portugal and the Neth- ence of the two companies in deriva- erlands, trading locations of rival tives clearing. exchange Euronext, have already The European Commission’s expressed concerns about the deal. antitrust department, whose approval Deutsche Boerse and LSE are ex- is needed for the deal to proceed, has pected to argue their combined firm set a provisional deadline of Septem- will be better able to compete with US Emerging market losses pause; ber 28 for its preliminary review. and Asian rivals. “We believe the merger will create US and Russian authorities have significant value for our customers already approved the deal which also and shareholders, and facilitate eco- needs a green light from the German S Africa stays under pressure nomic growth through the creation of state of Hesse.

Reuters “The rand will be quite vulnerable London going forward,” said Per Hammarlund, chief EM strategist at SEB in Stock- holm. merging markets enjoyed some “There is defi nitely a political power Asia stocks hold gains respite yesterday in line with a struggle between the Zuma faction and Epause in the dollar, though the the fi nance ministry. rand stayed under pressure after hefty If the markets don’t react too much before Yellen speech losses caused by an apparent power to Zuma’s pressure on Gordhan, he will struggle between the South African continue to press quite hard.” presidency and treasury. Heavy rand positioning has increased Reuters among the top losers, falling 1% to Emerging stocks have eased off one- the currency’s vulnerability – prior to Hong Kong extend their slide this week as inves- year highs hit in mid-August as robust this week, its year-to-date gain against tors dumped property shares, while US data and hawkish comments from the dollar totalled almost 15%. banks came under pressure ahead of Federal Reserve offi cials have boosted JPMorgan said its latest client survey sian stocks edged higher yes- earnings reports and a crackdown the dollar by reviving expectations of showed positioning in South African terday but clung to recent on riskier lending practices in the interest rate rises this year. bonds was at the highest since early Awell-worn trading ranges fi nancial sector. Markets are now on tenterhooks be- 2015. while the dollar held fi rm against re- “The whole (property) sector had fore Fed chief Janet Yellen’s speech to- “We think there is scope for the rand gional currencies ahead of a speech surged more than 20% at one point day. to weaken further in the short-term – by Federal Reserve chair Janet Yellen this month, and falls in share prices MSCI’s emerging equity index rose 2-4%,” JPM told clients. at a global central bankers’ meeting. this morning were purely a result of 0.3% off two-week lows and most cur- The mood was sombre also in the MSCI’s broadest index of Asia- investors’ trading strategy as they rencies fi rmed marginally against the Gulf as oil’s decline saw stocks extend- Pacifi c shares outside Japan edged want to lock in profi ts,” said Joe greenback. ing Wednesday’s falls. 0.3% higher. Qiao, a Shanghai-based analyst at Most of the attention was on South Russian stocks too fell half a per cent It is down 1.6% after hitting a Xiangcai Securities. Africa, however. though the rouble managed to recover one-year high last Tuesday. Stock futures were broadly fl at in The rand inched off three-week lows slightly. Japan’s Nikkei was down 0.3%, Asian trade. touched on Wednesday and bond yields Turkish markets too stabilised after pressured by losses on Wall Street In currencies, the dollar was a eased from two-week highs. falling heavily on Wednesday when the overnight and investor caution shade fi rmer at 100.44 yen, inching But the stabilisation looks fragile as country sent tanks over the border into ahead of Yellen’s speech in Jackson away from the 100-yen level under Finance Minister Pravin Gordhan re- Syria to counter Islamic State militants. Hole, Wyoming, today. which it has dipped in recent ses- fused to appear before police who had Turkish stocks bounced 0.9% while A broad index of Asian shares fell sions. summoned him over an investigation the lira fi rmed 0.3%. more than 10% in the two months The pair has traded in a narrow into a suspected rogue spy unit in the However, Polish stocks stayed under after the hike. 99.55-102.83 band this month, and tax service. pressure. On Wednesday, futures markets could move back toward the up- Gordhan’s eff orts at the treasury are Poland’s biggest insurer PZU, be- were indicating just an 18% chance per end of that range depending on seen as key to preserving South Afri- lieved to be keen on acquiring Unicred- the Fed would hike rates at its policy Yellen’s remarks, analysts say. ca’s investment grade credit rating and it’s stake in lender PKO, lost more meeting next month, and roughly Against a broad trade-weighted many suspect he is the target of pres- ground, holding near record lows. 50% odds of a rate increase in De- basket of its peers, the dollar was fl at sure from a faction allied to President In bond news, Poland is poised to cember, according to CME Group’s on the day at 94.72. Against the euro, Jacob Zuma. become only the second sovereign to FedWatch tool. Taiwan led regional it was changing hands at $1.12740. His refusal to meet the police could print an onshore yuan-denominated gainers in Asian stock markets with In commodities, crude oil prices set the stage for a prolonged tussle and “panda” bond, having guided Chinese a rise of 0.8% thanks to a bounce remained under pressure after slid- rock markets further. investors towards a 3.2%-3.7% yield. in fi nancials. Chinese stocks were ing sharply on Wednesday. Gulf Times Friday, August 26, 2016 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 5.48 -2.84 1,288,167 Boubyan Intl Industries Hold 27.00 0.00 864,300 Areej Vegetable Oils 3.68 0.00 - Solidarity Saudi Takaful Co 8.22 -1.08 693,840 Gulf Investment House Ksc 0.00 0.00 - Aloula Co 0.53 0.00 - Amana Cooperative Insurance 8.96 -1.43 1,598,544 Boubyan Bank K.S.C 385.00 1.32 401,000 Al-Omaniya Financial Service 0.30 0.00 - Alabdullatif Industrial Inv 15.07 -2.71 198,775 Ahli United Bank B.S.C 194.00 0.00 49,005 Al-Hassan Engineering Co 0.08 0.00 44,400 Saudi Printing & Packaging C 15.12 -5.38 1,843,003 Osos Holding Group Co 102.00 -1.92 5,000 Al-Fajar Al-Alamia Co 0.75 0.00 - Sanad Cooperative Insurance 15.23 0.00 - Al-Eid Food Ksc 90.00 -3.23 1,900 Al-Anwar Ceramic Tiles Co 0.22 0.00 - Saudi Paper Manufacturing Co 10.09 -3.07 2,699,299 Qurain Petrochemical Industr 200.00 1.01 153,945 Al Suwadi Power 0.20 0.00 17,907 Alinma Bank 12.61 -1.10 44,115,906 Advanced Technology Co 0.00 0.00 - Al Shurooq Inv Ser 1.04 0.00 - Almarai Co 52.56 0.59 279,057 Ekttitab Holding Co Sak 40.50 2.53 142,900 Al Sharqiya Invest Holding 0.13 -0.75 612,236 Falcom Saudi Equity Etf 23.60 -2.07 289,268 Kout Food Group Ksc 0.00 0.00 - Al Maha Petroleum Products M 1.47 0.00 200 QATAR United International Transpo 30.24 -1.95 33,603 Real Estate Trade Centers Co 31.50 -1.56 1 Al Maha Ceramics Co Saoc 0.48 0.00 200,000 Hsbc Amanah Saudi 20 Etf 24.80 0.00 - Acico Industries Co Kscc 290.00 0.00 53,000 Al Madina Takaful Co Saoc 0.07 -1.37 45,934 Company Name Lt Price % Chg Volume Saudi International Petroche 12.15 -1.14 152,061 Kipco Asset Management Co 128.00 0.00 2,000 Al Madina Investment Co 0.06 0.00 165,982 Falcom Petrochemical Etf 21.80 0.00 - National Petroleum Services 730.00 0.00 2,651 Al Kamil Power Co 0.31 0.00 - Zad Holding Co 85.00 -1.73 686 Saudi United Cooperative Ins 13.08 -1.80 138,176 Alimtiaz Investment Co Kscc 69.00 0.00 660,000 Al Jazerah Services -Pfd 0.55 0.00 - Widam Food Co 66.00 -1.05 53,846 Bank Al-Jazira 11.33 -0.87 2,068,556 Ras Al Khaimah White Cement 90.00 -1.10 41,000 Al Jazeera Steel Products Co 0.24 -0.41 269,325 Vodafone Qatar 12.09 0.42 751,851 Al Rajhi Bank 53.85 -1.59 2,915,525 Kuwait Reinsurance Co Ksc 190.00 0.00 5,064 Al Jazeera Services 0.19 0.53 245,826 United Development Co 20.90 0.00 118,765 Samba Financial Group 17.99 -0.28 1,335,167 Kuwait & Gulf Link Transport 43.00 0.00 210,000 Al Izz Islamic Bank 0.07 -1.52 318,940 Salam International Investme 11.90 0.68 151,087 United Electronics Co 22.90 -2.51 127,433 Human Soft Holding Co Ksc 1,500.00 0.00 2,600 Al Buraimi Hotel 0.88 0.00 - Qatar & Oman Investment Co 11.25 0.27 42,419 Allied Cooperative Insurance 14.75 -1.40 496,177 Automated Systems Co Kscc 246.00 0.00 550 Al Batinah Power 0.20 0.00 - Qatar Navigation 93.00 -0.85 16,823 Malath Cooperative & Reinsur 10.60 -2.21 992,723 Metal & Recycling Co 66.00 0.00 165,000 Al Batinah Hotels 1.13 0.00 - Qatar National Cement Co 87.60 -0.34 8,906 Alinma Tokio Marine 16.92 1.50 1,560,099 Gulf Franchising Holding Co 26.50 0.00 293,610 Al Batinah Dev & Inv 0.09 0.00 - Qatar National Bank 164.50 -0.24 160,785 Arabian Shield Cooperative 24.60 -0.28 296,232 Al-Enma’a Real Estate Co 43.00 0.00 92,890 Al Anwar Holdings Saog 0.19 0.00 232,696 Qatar Islamic Insurance 59.70 -0.17 190 Savola 33.83 -0.53 136,387 National Mobile Telecommuni 1,020.00 0.00 5,004 Ahli Bank 0.19 -2.63 30,051 Qatar Industrial Manufactur 44.30 0.23 490 Wafrah For Industry And Deve 23.57 1.12 254,066 Al Bareeq Holding Co Kscc 0.00 0.00 - Acwa Power Barka Saog 0.71 0.00 5,000 Qatar International Islamic 67.50 0.15 33,440 Fitaihi Holding Group 13.00 0.15 83,105 Housing Finance Co Sak 32.00 1.59 169,768 Abrasives Manufacturing Co S 0.05 0.00 - Qatari Investors Group 53.50 -0.37 38,251 Tourism Enterprise Co/ Shams 28.05 -2.37 210,776 Al Salam Group Holding Co 51.00 2.00 1,229,851 A’saff a Foods Saog 0.86 0.00 - Qatar Islamic Bank 112.00 -0.71 35,429 Sahara Petrochemical Co 10.22 -0.10 1,237,141 United Foodstuff Industries 130.00 0.00 2,806 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Gas Transport(Nakilat) 24.46 0.45 142,640 Herfy Food Services Co 72.50 0.00 266,237 Al Aman Investment Company 50.00 1.01 11,100 Qatar General Insurance & Re 48.30 -1.33 450 Mashaer Holdings Co Ksc 0.00 0.00 - Qatar German Co For Medical 12.15 -0.16 11,995 Manazel Holding 28.00 -1.75 263,446 Qatar Fuel Qsc 153.80 -0.13 17,569 Mushrif Trading & Contractin 58.00 3.57 125,100 Qatar First Bank 11.61 -0.68 164,415 KUWAIT Tijara And Real Estate Inves 37.00 -2.63 4,000 Qatar Electricity & Water Co 222.00 -2.12 88,825 Kuwait Building Materials 190.00 0.00 3,010 Qatar Cinema & Film Distrib 33.00 0.00 333 Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 830.00 0.00 90,000 Qatar Insurance Co 89.50 -0.56 94,986 Commercial Real Estate Co 75.00 -1.32 250,000 Ooredoo Qsc 101.30 -0.39 160,493 Securities Group Co 85.00 0.00 26,000 Future Communications Co 92.00 0.00 88,071 National Leasing 18.35 -0.05 16,031 Sultan Center Food Products 56.00 1.82 500,000 National International Co 52.00 -3.70 315,619 Mazaya Qatar Real Estate Dev 14.64 -0.27 108,915 Kuwait Foundry Co Sak 166.00 1.22 63,564 Taameer Real Estate Invest C 21.50 -2.27 197,000 UAE Mesaieed Petrochemical Holdi 18.94 -0.99 168,050 Kuwait Financial Centre Sak 84.00 -2.33 100,000 Gulf Cement Co 75.00 -1.32 100,000 Al Meera Consumer Goods Co 218.40 0.60 29,423 Ajial Real Estate Entmt 142.00 0.00 10,000 Heavy Engineering And Ship B 162.00 0.00 23,500 Company Name Lt Price % Chg Volume Medicare Group 92.50 0.00 36,069 Gulf Glass Manuf Co -Kscc 300.00 0.00 221 Refrigeration Industries & S 315.00 0.00 4,280 Mannai Corporation Qsc 86.00 0.00 - Kuwait Finance & Investment 38.00 0.00 26,300 National Real Estate Co 78.00 0.00 2,446,660 Waha Capital Pjsc 1.93 -2.03 488,989 Masraf Al Rayan 38.00 -0.78 345,130 National Industries Co Ksc 194.00 0.00 1,103 Al Safat Energy Holding Comp 0.00 0.00 - United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 17.60 -1.68 9,979 Kuwait Real Estate Holding C 21.50 0.00 200,000 Kuwait National Cinema Co 980.00 0.00 1,266 United Arab Bank Pjsc 2.40 0.00 - Industries Qatar 113.00 -0.88 100,392 Securities House/The 46.50 -1.06 190,030 Danah Alsafat Foodstuff Co 0.00 0.00 - Union National Bank/Abu Dhab 4.45 2.30 2,662,298 Islamic Holding Group 66.00 -1.49 11,035 Boubyan Petrochemicals Co 490.00 0.00 68,133 Independent Petroleum Group 375.00 0.00 3,000 Union Insurance Co 1.43 0.00 - Gulf Warehousing Company 57.80 0.52 78,250 Al Ahli Bank Of Kuwait 320.00 0.00 3,000 Kuwait Real Estate Co Ksc 52.00 0.00 15,018 Union Cement Co 1.10 0.00 - Gulf International Services 35.90 -1.37 214,578 Ahli United Bank (Almutahed) 390.00 0.00 14,866 Salhia Real Estate Co Ksc 365.00 0.00 30,500 Umm Al Qaiwain Cement Indust 0.85 0.00 - Ezdan Holding Group 19.45 -0.26 344,746 National Bank Of Kuwait 590.00 0.00 1,131,426 Gulf Cable & Electrical Ind 385.00 0.00 10 Sharjah Islamic Bank 1.50 -1.32 217,125 Doha Insurance Co 20.75 0.00 - Commercial Bank Of Kuwait 320.00 0.00 11,570 Al Nawadi Holding Co Ksc 0.00 0.00 - Sharjah Insurance Company 3.85 0.00 - Doha Bank Qsc 38.35 -1.67 54,728 Kuwait International Bank 190.00 -1.04 56,347 Kuwait Finance House 460.00 -1.08 456,329 Sharjah Group 1.50 0.00 - Dlala Holding 23.56 -0.17 35,016 Gulf Bank 228.00 0.00 74,000 Gulf North Africa Holding Co 34.00 0.00 203,145 Sharjah Cement & Indus Devel 0.95 0.00 476,700 Commercial Bank Qsc 44.10 -0.23 91,355 Al-Massaleh Real Estate Co 37.00 0.00 70,222 Hilal Cement Co 128.00 0.00 2,871 Ras Al-Khaimah National Insu 4.10 0.00 - Barwa Real Estate Co 37.10 0.27 111,793 Al Arabiya Real Estate Co 31.50 0.00 1,173,250 Osoul Investment Kscc 44.50 0.00 6,964 Ras Al Khaimah White Cement 1.17 0.00 - Al Khaleej Takaful Group 23.89 -0.04 300 Kuwait Remal Real Estate Co 32.00 -1.54 610,000 Gulf Insurance Group Ksc 680.00 0.00 5,250 Ras Al Khaimah Ceramics 3.14 -0.32 24,150 Aamal Co 14.69 0.69 158,535 Alkout Industrial Projects C 650.00 0.00 401 Kuwait Food Co (Americana) 2,440.00 -0.81 5,795 Ras Al Khaimah Cement Co Psc 0.81 0.00 162,315 A’ayan Real Estate Co Sak 62.00 0.00 200,000 Umm Al Qaiwain Cement Indust 0.00 0.00 - Ras Al Khaima Poultry 2.52 0.00 - Investors Holding Group Co.K 21.50 -2.27 2,205,441 Aayan Leasing & Investment 30.50 -3.17 1,020,755 Rak Properties 0.60 1.69 4,333,802 Al-Mazaya Holding Co 112.00 -1.75 100,000 Ooredoo Qsc 94.50 0.00 - SAUDI ARABIA Al-Madar Finance & Invt Co 0.00 0.00 - Oman & Emirates Inv(Emir)50% 1.18 0.00 - Gulf Petroleum Investment 39.00 1.30 481,455 Nbad Oneshare Msci Uae Ucits 6.26 0.00 - National Takaful Company 0.00 Company Name Lt Price % Chg Volume Mabanee Co Sakc 790.00 0.00 9,276 OMAN 0.98 - City Group 0.00 0.00 - National Marine Dredging Co 4.60 0.00 - National Investor Co/The 0.60 0.00 - United Wire Factories Compan 21.95 -0.59 241,004 Inovest Co Bsc 59.00 0.00 50,000 Company Name Lt Price % Chg Volume Etihad Etisalat Co 22.07 -1.52 825,654 Kuwait Gypsum Manufacturing 0.00 0.00 - National Corp Tourism & Hote 3.65 0.00 - Dar Al Arkan Real Estate Dev 5.64 -1.57 23,399,002 Al-Deera Holding Co 35.50 -1.39 173,500 Voltamp Energy Saog 0.46 0.00 - National Bank Of Umm Al Qaiw 3.35 0.00 - Saudi Hollandi Bank 10.31 0.10 376,273 Alshamel International Hold 0.00 0.00 - United Power/Energy Co- Pref 1.00 0.00 - National Bank Of Ras Al-Khai 5.15 0.00 25,000 Rabigh Refining And Petroche 10.65 -2.65 442,245 Mena Real Estate Co 22.00 0.00 900 United Power Co Saog 3.40 0.00 - National Bank Of Fujairah 4.44 0.00 - Banque Saudi Fransi 20.30 0.05 572,386 National Slaughter House 0.00 0.00 - United Finance Co 0.15 0.00 - National Bank Of Abu Dhabi 9.47 1.07 287,155 Saudi Enaya Cooperative Insu 9.44 0.96 592,630 Amar Finance & Leasing Co 47.00 0.00 9,888 Ubar Hotels & Resorts 0.13 0.00 - Methaq Takaful Insurance 0.88 -1.12 4,674,363 Mediterranean & Gulf Insuran 18.13 -0.66 489,900 United Projects For Aviation 720.00 4.35 1,424 Takaful Oman 0.13 0.00 383 Manazel Real Estate Pjsc 0.53 1.92 2,681,503 Saudi British Bank 17.39 -1.53 663,864 National Consumer Holding Co 40.00 0.00 10,020 Taageer Finance 0.12 0.00 - Invest Bank 2.20 0.00 303,467 Mohammad Al Mojil Group Co 12.55 0.00 - Amwal International Investme 19.00 2.70 19,800 Sweets Of Oman 1.34 0.00 - Intl Fish Farming Co Pjsc 1.46 0.00 1,000 Red Sea Housing Services Co 24.39 -0.57 157,269 Jeeran Holdings 68.00 0.00 30,180 Sohar Power Co 0.27 0.00 - Insurance House 0.81 0.00 - Takween Advanced Industries 19.57 -1.71 276,925 Equipment Holding Co K.S.C.C 50.00 0.00 1,682,280 Sohar Poultry 0.21 0.00 - Gulf Pharmaceutical Ind Psc 2.27 0.89 8,706 Sabb Takaful 22.08 -0.09 419,129 Nafais Holding 180.00 0.00 114,000 Smn Power Holding Saog 0.72 0.00 - Gulf Medical Projects 2.51 0.00 - Saudi Arabian Fertilizer Co 63.75 -1.21 568,387 Safwan Trading & Contracting 400.00 0.00 40,500 Shell Oman Marketing - Pref 1.05 0.00 - Gulf Cement Co 0.90 0.00 127,000 National Gypsum 11.24 -2.01 242,582 Arkan Al Kuwait Real Estate 76.00 0.00 15,000 Shell Oman Marketing 1.90 0.00 - Fujairah Cement Industries 0.85 0.00 - Saudi Ceramic Co 31.77 -1.88 281,866 Gfh Financial Group Bsc 77.00 0.00 1,158,414 Sharqiyah Desalination Co Sa 4.50 0.00 - Fujairah Building Industries 1.55 0.00 - National Gas & Industrializa 28.00 -0.36 59,504 Energy House Holding Co Kscp 46.50 1.09 24,995 Sembcorp Salalah Power & Wat 0.24 0.00 - Foodco Holding Pjsc 4.60 0.00 - Saudi Pharmaceutical Industr 32.85 -2.78 97,236 Kuwait Slaughter House Co 148.00 0.00 45,000 Salalah Port Services 0.65 0.00 - First Gulf Bank 12.00 0.42 408,508 Thimar 28.55 -2.73 329,231 Kuwait Co For Process Plant 170.00 0.00 50 Salalah Mills Co 1.48 0.00 - Finance House 1.90 0.00 - National Industrialization C 12.84 0.71 1,344,239 Al Maidan Dental Clinic Co K 0.00 0.00 - Salalah Beach Resort Saog 1.38 0.00 - Eshraq Properties Co Pjsc 0.78 1.30 9,641,424 Saudi Transport And Investme 57.12 3.65 354,355 National Ranges Company 29.50 0.00 1,929,407 Sahara Hospitality 2.50 0.00 - Emirates Telecom Group Co 19.90 -0.25 1,240,088 Saudi Electricity Co 19.05 -1.04 1,774,345 Al-Themar Real International 0.00 0.00 - Renaissance Services Saog 0.26 -3.38 23,400 Emirates Insurance Co. (Psc) 6.00 0.00 - Saudi Arabia Refineries Co 30.56 -0.81 258,493 Al-Ahleia Insurance Co Sakp 465.00 0.00 1,608 Raysut Cement Co 1.54 0.00 90,000 Emirates Driving Company 7.50 0.00 - Arriyadh Development Company 19.25 -0.98 364,458 Wethaq Takaful Insurance Co 30.50 0.00 5,000 Port Service Corporation 0.23 0.00 - Dana Gas 0.56 1.82 4,030,830 Al-Baha Development & Invest 13.50 0.00 - Salbookh Trading Co Kscp 61.00 0.00 209,731 Phoenix Power Co Saoc 0.15 0.00 743,926 Commercial Bank Internationa 1.99 0.00 - Saudi Research And Marketing 28.97 -6.03 785,469 Aqar Real Estate Investments 56.00 0.00 54,059 Packaging Co Ltd 2.01 0.00 - Bank Of Sharjah 1.33 5.56 1,254,131 Aldrees Petroleum And Transp 31.20 -1.89 130,347 Hayat Communications 43.00 0.00 47,900 Ooredoo 0.74 0.00 35,000 Axa Green Crescent Insurance 0.87 0.00 - Saudi Vitrified Clay Pipe Co 77.00 -1.52 21,363 Kuwait Packing Materials Mfg 0.00 0.00 - Ominvest 0.56 0.00 - Arkan Building Materials Co 0.83 0.00 - Jarir Marketing Co 103.20 -0.56 57,985 Soor Fuel Marketing Co Ksc 118.00 3.51 85,888 Oman United Insurance Co 0.30 0.00 - Alkhaleej Investment 1.80 0.00 - Arab National Bank 16.13 -0.80 346,575 Alargan International Real 152.00 0.00 62,000 Oman Textile Holding Co Saog 0.32 0.00 - Aldar Properties Pjsc 2.78 1.46 7,337,825 Yanbu National Petrochemical 43.03 -2.32 340,988 Burgan Co For Well Drilling 93.00 0.00 47,218 Oman Telecommunications Co 1.62 0.00 94,688 Al Wathba National Insurance 4.40 0.00 - Arabian Cement 42.33 -1.26 105,895 Kuwait Resorts Co Kscc 85.00 0.00 50,000 Oman Refreshment Co 2.15 0.00 - Al Khazna Insurance Co 0.41 0.00 - Middle East Specialized Cabl 7.08 1.14 1,189,638 Oula Fuel Marketing Co 120.00 1.69 626,366 Oman Packaging 0.30 0.00 3,000 Al Fujairah National Insuran 300.00 0.00 - Al Khaleej Training And Educ 17.94 -1.64 325,913 Palms Agro Production Co 106.00 0.00 850 Oman Orix Leasing Co. 0.12 0.00 - Al Dhafra Insurance Co. P.S. 5.00 0.00 - Al Sagr Co-Operative Insuran 40.36 -2.32 1,385,531 Ikarus Petroleum Industries 31.50 0.00 16,200 Oman Oil Marketing Company 1.88 0.00 - Al Buhaira National Insuranc 2.36 0.00 - Trade Union Cooperative Insu 12.72 -0.08 272,026 Mubarrad Transport Co 58.00 1.75 129,000 Oman National Engineering An 0.17 0.00 2,800 Al Ain Ahlia Ins. Co. 60.00 0.00 - Arabia Insurance Cooperative 10.47 -3.23 348,299 Al Mowasat Health Care Co 200.00 0.00 20,000 Oman Investment & Finance 0.20 0.00 200,000 Agthia Group Pjsc 6.05 1.85 500 Saudi Chemical Company 39.44 -1.60 64,996 Shuaiba Industrial Co 310.00 0.00 2,908 Oman Intl Marketing 0.52 0.00 - Abu Dhabi Ship Building Co 2.71 0.00 - Fawaz Abdulaziz Alhokair & C 39.05 -2.35 370,032 Hits Telecom Holding 38.50 -1.28 394,767 Oman Hotels & Tourism Co 0.40 0.00 - Abu Dhabi Natl Co For Buildi 0.49 0.00 5,007 Bupa Arabia For Cooperative 123.70 -2.81 81,322 First Takaful Insurance Co 47.00 -1.05 19,120 Oman Foods International 0.00 0.00 - Abu Dhabi National Takaful C 4.30 0.00 - Wafa Insurance 14.20 -3.34 1,343,039 Kuwaiti Syrian Holding Co 29.00 -1.69 346,280 Oman Flour Mills 0.62 0.00 - Abu Dhabi National Insurance 2.09 0.00 - Jabal Omar Development Co 59.60 0.74 217,433 National Cleaning Company 39.50 1.28 226,918 Oman Fisheries Co 0.06 -1.61 565,841 Abu Dhabi National Hotels 3.85 0.00 - Saudi Basic Industries Corp 82.51 -1.81 5,587,992 Eyas For High & Technical Ed 0.00 0.00 - Oman Fiber Optics 4.57 0.00 - Abu Dhabi National Energy Co 0.51 -1.92 137,469 Saudi Kayan Petrochemical Co 6.54 -0.76 10,000,118 United Real Estate Company 100.00 0.00 1,415 Oman Europe Foods Industries 1.00 0.00 - Abu Dhabi Islamic Bank 3.75 -1.06 430,939 Etihad Atheeb Telecommunicat 3.77 -0.79 709,707 Agility 470.00 0.00 2,466,526 Oman Education & Training In 0.19 0.00 - Co For Cooperative Insurance 89.25 -0.59 48,132 Kuwait & Middle East Fin Inv 24.50 0.00 100,500 Oman Chromite 3.64 0.00 - National Petrochemical Co 14.90 -1.59 146,047 Fujairah Cement Industries 74.00 -1.33 680,881 Oman Chlorine 0.50 0.00 - BAHRAIN Gulf Union Cooperative Insur 10.15 -2.78 600,206 Livestock Transport & Tradng 250.00 4.17 207,210 Oman Ceramic Com 0.40 0.00 100 Gulf General Cooperative Ins 14.47 -1.23 225,759 International Resorts Co 27.00 -3.57 30,486 Oman Cement Co 0.48 0.00 70,500 Basic Chemical Industries 31.85 1.69 86,078 National Industries Grp Hold 114.00 0.00 297,910 Oman Cables Industry 1.80 0.00 - Company Name Lt Price % Chg Volume Saudi Steel Pipe Co -1.18 Marine Services Co Ksc 5.81 16.82 199,840 91.00 4,621 Oman Agricultural Dev 0.00 0.00 - Zain Bahrain Bscc 0.00 0.00 - Buruj Cooperative Insurance -1.84 Warba Insurance Co 1.85 17.08 491,994 110.00 10,045 Oman & Emirates Inv(Om)50% 0.14 0.00 - United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co -1.18 Kuwait United Poultry Co 0.00 124.50 41,030 190.00 927 Natl Aluminium Products 0.21 2.44 128,500 United Gulf Investment Corp 0.00 0.00 - Southern Province Cement Co -2.32 First Dubai Real Estate Deve -3.23 64.73 19,064 60.00 360,000 National Securities 0.17 0.00 - United Gulf Bank 0.00 0.00 - Maadaniyah -1.64 Al Arabi Group Holding Co 0.00 22.20 255,149 50.00 31,501 National Real Estate Develop 5.00 0.00 - Trafco Group Bsc 0.00 0.00 - Yamama Cement Co -3.53 Kuwait Hotels Sak 0.00 20.21 923,840 0.00 - National Pharmaceutical 0.11 0.00 - Takaful International Co 0.00 0.00 - Jazan Development Co -1.00 Mobile Telecommunications Co 0.00 9.86 588,231 330.00 267,813 National Mineral Water 0.06 0.00 - Taib Bank -$Us 0.00 0.00 - Zamil Industrial Investment -0.83 Al Safat Real Estate Co 0.00 25.09 142,194 0.00 - National Hospitality Institu 0.00 0.00 - Seef Properties 0.20 0.00 45,338 Alujain Corporation (Alco) -3.72 Tamdeen Real Estate Co Ksc 0.00 13.21 500,291 550.00 3,100 National Gas Co 0.63 0.00 5,000 Securities & Investment Co 0.00 0.00 - Tabuk Agricultural Developme 0.47 Al Mudon Intl Real Estate Co -5.45 10.68 2,348,844 26.00 3,218,000 National Finance Co 0.14 0.00 - National Hotels Co 0.00 0.00 - United Co-Operative Assuranc -2.08 Kuwait Cement Co Ksc 0.00 13.63 1,026,900 380.00 10,000 National Detergent Co Saog 0.67 1.82 10,937 National Bank Of Bahrain Bsc 0.70 -2.78 3,345 Qassim Cement/The -2.92 Sharjah Cement & Indus Devel 0.00 54.84 74,422 80.00 100,000 National Biscuit Industries 3.75 0.00 - Nass Corp Bsc 0.12 0.00 58,700 Saudi Advanced Industries -0.81 Kuwait Portland Cement Co -1.03 9.76 315,775 960.00 3,970 National Bank Of Oman Saog 0.25 -1.57 301,749 Khaleeji Commercial Bank 0.06 0.00 147,581 Kingdom Holding Co -0.46 Educational Holding Group 0.00 10.80 323,343 196.00 3,500 Muscat Thread Mills Co 0.11 0.00 - Ithmaar Bank Bsc 0.12 0.00 310,560 Saudi Arabian Amiantit Co -1.96 Bahrain Kuwait Insurance 0.00 7.00 264,838 0.00 - Muscat National Holding 1.79 0.00 - Investcorp Bank -$Us 7.50 0.00 10,000 Al Jouf Agriculture Developm -3.14 Asiya Capital Investments Co 0.00 26.81 172,727 33.00 5,287 Muscat Gases Company Saog 0.62 0.00 - Inovest Co Bsc 0.00 0.00 - Saudi Industrial Development -1.35 Kuwait Investment Co 0.00 10.24 548,809 87.00 10,021 Muscat Finance 0.12 0.00 - Gulf Monetary Group 0.00 0.00 - Bishah Agriculture 0.00 Burgan Bank 0.00 69.75 - 325.00 2,055,311 Majan Glass Company 0.19 0.00 - Gulf Hotel Group B.S.C 0.64 -1.54 4,200 Riyad Bank -0.48 Kuwait Projects Co Holdings 0.00 10.26 978,863 550.00 315,000 Majan College 0.52 0.00 - Gfh Financial Group Bsc 0.25 0.00 17,595 The National Agriculture Dev -1.16 Al Madina For Finance And In -1.02 18.82 460,408 48.50 567,698 Hsbc Bank Oman 0.10 0.00 150 Esterad Investment Co B.S.C. 0.00 0.00 - Halwani Bros Co 1.51 Kuwait Insurance Co 0.00 46.40 110,398 265.00 10,799 Hotels Management Co Interna 1.25 0.00 - Delmon Poultry Co 0.00 0.00 - Arabian Pipes Co 1.05 Al Masaken Intl Real Estate 0.00 14.47 1,220,107 0.00 - Gulf Stone 0.11 0.00 - Bmmi Bsc 0.88 0.00 5,000 Eastern Province Cement Co -0.74 Intl Financial Advisors -1.52 27.00 34,858 32.50 2,530,100 Gulf Plastic Industries Co 0.39 0.00 - Bmb Investment Bank 0.00 0.00 - Al Qassim Agricultural Co -1.16 First Investment Co Kscc 0.00 9.40 538,361 47.00 259,000 Gulf Mushroom Company 0.34 0.00 - Bbk Bsc 0.37 -0.54 100,000 Filing & Packing Materials M -6.16 Al Mal In -2.33 36.41 815,904 vestment Company 21.00 4,368,824 Gulf Investments Services 0.12 -1.65 92,092 Bankmuscat Saog 0.00 0.00 - Saudi Cable Co -2.56 0.00 5.70 538,702 Bayan Investment Co Kscc 33.00 425,250 Gulf Invest. Serv. Pref-Shar 0.11 0.95 10,000 Banader Hotels Co 0.00 0.00 - Tihama Advertising & Public 0.00 0.00 25.67 - Egypt Kuwait Holding Co Sae 132.00 31,875 Gulf International Chemicals 0.27 1.89 51,504 Bahrain Tourism Co ` 0.00 - Saudi Investment Bank/The -0.09 -1.20 10.94 85,257 Coast Investment Development 41.00 1,143,039 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - Bahrain Telecom Co 0.29 0.00 10,000 Astra Industrial Group -0.06 0.00 15.73 579,166 Privatization Holding Compan 47.00 325,531 Global Fin Investment 0.17 0.00 - Bahrain Ship Repair & Engin 1.70 0.00 11,865 Saudi Public Transport Co -0.60 0.00 13.35 669,100 Kuwait Medical Services Co 0.00 - Galfar Engineering&Contract 0.11 1.90 4,484,397 Bahrain National Holding 0.41 0.00 10,000 Taiba Holding Co -0.09 0.00 34.52 283,829 Injazzat Real State Company 71.00 10,000 Galfar Engineering -Prefer 0.39 0.00 - Bahrain Kuwait Insurance 0.00 0.00 - Saudi Industrial Export Co -3.13 0.00 34.96 270,470 Kuwait Cable Vision Sak 23.00 500 Financial Services Co. 0.17 0.00 - Bahrain Islamic Bank 0.10 4.21 15,200 Saudi Real Estate Co 0.10 -1.56 19.63 541,392 Sanam Real Estate Co Kscc 31.50 10,501 Financial Corp/The 0.11 0.00 - Bahrain Flour Mills Co 0.00 0.00 - Saudia Dairy & Foodstuff Co -0.37 0.00 133.65 66,809 Ithmaar Bank Bsc 37.50 501,700 Dhofar University 1.49 0.00 - Bahrain Family Leisure Co 0.00 0.00 - National Shipping Co Of/The -0.23 0.00 35.29 1,133,053 Aviation Lease And Finance C 214.00 10 Dhofar Tourism 0.49 0.00 - Bahrain Duty Free Complex 0.77 -1.28 125,000 Methanol Chemicals Co -2.36 -1.61 6.20 513,482 Arzan Financial Group For Fi 30.50 420,000 Dhofar Poultry 0.18 0.00 - Bahrain Commercial Facilitie 0.67 0.00 100,000 Ace Arabia Cooperative Insur -2.69 0.00 35.85 87,303 Ajwan Gulf Real Estate Co 29.50 25,005 Dhofar Intl Development 0.40 0.00 - Bahrain Cinema Co 1.24 0.00 6,821 Mobile Telecommunications Co -1.34 0.00 6.65 1,654,331 Kuwait Business Town Real Es 38.50 635,350 Dhofar Insurance 0.21 0.00 - Bahrain Car Park Co 0.00 0.00 - Saudi Arabian Coop Ins Co 1.34 0.00 15.17 1,324,604 Future Kid Entertainment And 95.00 20,000 Dhofar Fisheries & Food Indu 1.28 0.00 - Arab Insurance Group(Bsc)-$ 0.28 0.00 35,720 Axa Cooperative Insurance -2.87 0.00 14.20 254,241 Specialities Group Holding C 72.00 10,000 Dhofar Cattlefeed 0.23 0.00 - Arab Banking Corp Bsc-$Us 0.34 0.00 100,000 Alsorayai Group -1.72 -2.27 9.72 235,612 Abyaar Real Eastate Developm 21.50 764,000 Dhofar Beverages Co 0.26 0.00 - Aluminium Bahrain Bsc 0.32 0.00 65,000 Weqaya For Takaful Insurance 0.00 0.00 19.39 - Dar Al Thuraya Real Estate C 0.00 - Construction Materials Ind 0.03 0.00 8,300 Albaraka Banking Group 0.42 0.00 134,000 Bank Albilad -2.47 0.00 15.02 864,012 Al-Dar National Real Estate 0.00 - Computer Stationery Inds 0.26 0.00 - Al-Salam Bank 0.09 0.00 20,000 Al-Hassan G.I. Shaker Co -1.33 0.00 17.04 2,240,344 Kgl Logistics Company Kscc 70.00 56,989 Bankmuscat Saog 0.39 -1.02 158,833 Al-Ahlia Insurance Co 0.00 0.00 - Wataniya Insurance Co -3.09 0.00 23.52 691,047 Combined Group Contracting 670.00 6,999 Bank Sohar 0.17 1.80 1,585,983 Ahli United Bank B.S.C 0.64 -0.78 20,174,372 Abdullah Al Othaim Markets 93.88 -1.44 29,204 Zima Holding Co Ksc 40.50 0.00 20,000 Bank Nizwa 0.08 0.00 374,158 Hail Cement 11.67 -0.43 197,381 Qurain Holding Co 0.00 0.00 - Bank Dhofar Saog 0.24 -4.00 6,000 LATEST MARKET CLOSING FIGURES Gulf Times 8 Friday, August 26, 2016 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 18,481.48 - 65.82 Apple Inc 108.03 -0.75 23,675,081 S&P 500 Index 2,175.44 - 11.46 Microsoft Corp 57.95 0.10 18,151,506 Nasdaq Composite Index 5,217.70 - 42.38 Exxon Mobil Corp 88.02 0.34 7,985,437 S&P/Tsx Composite Index 14,626.24 - 138.53 Johnson & Johnson 118.71 -0.61 6,303,942 Mexico Bolsa Index 47,743.61 + 77.59 General Electric Co 31.22 -0.03 22,045,111 Brazil Bovespa Stock Idx 57,717.88 - 302.16 Jpmorgan Chase & Co 65.95 0.27 10,167,204 Ftse 100 Index 6,824.46 - 11.32 Procter & Gamble Co/The 87.31 -0.10 5,713,285 Cac 40 Index 4,404.85 - 30.62 Verizon Communications Inc 52.53 -0.19 8,900,724 Dax Index 10,534.79 - 88.18 Wal-Mart Stores Inc 72.23 0.36 10,050,690 Ibex 35 Tr 8,597.20 - 58.30 Pfizer Inc 34.82 -0.77 22,538,088 Nikkei 225 16,555.95 - 41.35 Coca-Cola Co/The 43.85 0.00 11,508,919 Japan Topix 1,304.27 - 2.44 Chevron Corp 102.20 0.51 5,178,275 Hang Seng Index 22,814.95 - 5.83 Visa Inc-Class A Shares 80.29 -0.63 5,027,955 All Ordinaries Indx 5,631.43 - 22.14 Home Depot Inc 135.06 -0.85 4,113,011 Nzx All Index 1,405.43 + 3.17 Walt Disney Co/The 95.82 -0.16 5,912,529 Bse Sensex 30 Index 27,835.91 - 224.03 Merck & Co. Inc. 62.73 -1.34 7,482,902 Nse S&P Cnx Nifty Index 8,592.20 - 58.10 Intel Corp 35.15 -0.71 16,343,525 Straits Times Index 2,876.93 + 7.36 Intl Business Machines Corp 159.05 -0.76 3,645,837 Karachi All Share Index 26,653.80 + 114.68 Cisco Systems Inc 31.06 0.26 24,474,730 Jakarta Composite Index 5,454.12 + 50.12 Unitedhealth Group Inc 139.87 -1.51 2,529,814 Mcdonald’s Corp 114.87 -0.28 4,135,442 3M Co 179.41 -0.20 1,137,075 Nike Inc -Cl B 60.22 1.01 11,379,038 TOKYO Boeing Co/The 133.29 -0.63 2,135,910 United Technologies Corp 107.96 -0.04 2,444,669 Company Name Lt Price % Chg Volume Goldman Sachs Group Inc 165.30 -0.47 2,035,311 Rakuten Inc 1,297.50 1.13 2,874,100 American Express Co 65.16 -0.79 4,128,222 Kyocera Corp 4,747.00 0.06 2,639,500 Du Pont (E.I.) De Nemours 70.37 -0.10 2,708,746 Nissan Motor Co Ltd 982.50 1.06 15,255,800 Caterpillar Inc 83.15 -1.02 2,200,583 Hitachi Ltd 475.50 0.11 14,560,000 Travelers Cos Inc/The 117.11 0.41 1,013,986 Takeda Pharmaceutical Co Ltd 4,541.00 -0.48 1,666,900 Jfe Holdings Inc 1,483.00 1.02 4,355,900 Ana Holdings Inc 279.50 1.64 14,596,000 The off ices of Mylan Laboratories are seen in Cannonsburg,Pennsylvania (file). Slumping healthcare stocks pulled European FTSE 100 Mitsubishi Electric Corp 1,275.00 -2.11 6,674,000 Sumitomo Mitsui Financial Gr 3,412.00 0.21 4,208,900 markets lower yesterday after White House candidate Hillary Clinton demanded lower price for Mylan’ allergy drug EpiPen, Company Name Lt Price % Chg Volume Honda Motor Co Ltd 3,091.00 0.06 4,337,300 which has become four times more expensive in the past decade. Fast Retailing Co Ltd 35,460.00 -0.39 1,371,300 Wpp Plc 1,797.00 0.96 2,109,198 Ms&Ad Insurance Group Holdin 2,885.00 2.20 2,089,000 Worldpay Group Plc 299.80 -0.93 819,047 Kubota Corp 1,431.00 -0.17 2,827,100 Wolseley Plc 4,288.00 -0.63 108,244 Seven & I Holdings Co Ltd 4,431.00 -2.27 3,866,600 Wm Morrison Supermarkets 198.40 -0.10 1,849,820 Inpex Corp 871.20 -1.57 5,636,400 Whitbread Plc 4,142.00 -0.79 204,730 Resona Holdings Inc 454.70 0.98 6,795,800 Vodafone Group Plc 234.35 0.45 11,024,988 Asahi Kasei Corp 850.80 -0.02 5,093,000 United Utilities Group Plc 980.00 1.14 329,355 Kirin Holdings Co Ltd 1,696.00 0.00 3,106,600 Pharma nerves hit Europe Unilever Plc 3,559.50 0.94 552,817 Marubeni Corp 501.70 -0.44 4,650,400 Tui Ag-Di 1,033.00 -0.58 146,835 Mitsubishi Ufj Financial Gro 524.10 -0.15 40,736,700 Travis Perkins Plc 1,679.00 -0.94 578,056 Mitsubishi Chemical Holdings 598.50 -0.47 3,442,500 Tesco Plc 164.60 0.27 5,380,799 Fanuc Corp 17,160.00 0.38 1,154,900 Taylor Wimpey Plc 163.30 -3.09 9,027,766 Daito Trust Construct Co Ltd 15,435.00 -0.77 233,500 markets; dollar wobbles Standard Life Plc 355.70 -0.59 1,195,879 Otsuka Holdings Co Ltd 4,628.00 -0.32 712,500 Standard Chartered Plc 622.30 -0.30 2,768,445 Oriental Land Co Ltd 6,192.00 0.75 619,300 St James’s Place Plc 959.50 -0.62 160,012 Sekisui House Ltd 1,643.00 -0.57 2,960,800 Mylan shares, however, were up traditionally signalled the direction of Sse Plc 1,520.00 0.13 541,352 Reuters Secom Co Ltd 7,727.00 0.59 1,170,700 0.6%, rebounding from steep Wednes- monetary policy. Yellen may struggle Smith & Nephew Plc 1,230.00 -0.32 1,573,634 London/New York Tokio Marine Holdings Inc 4,007.00 0.35 1,983,400 Sky Plc 866.50 0.87 1,936,515 day losses. An index of US-listed health to convince fi nancial markets she can Aeon Co Ltd 1,489.00 0.13 3,275,000 Shire Plc 4,866.00 -3.16 1,092,516 shares was fl at. steer a divided US central bank to raise Mitsui & Co Ltd 1,349.00 -0.33 3,946,700 Severn Trent Plc 2,418.00 1.04 88,177 lumping healthcare stocks pulled The Dow Jones industrial average fell interest rates at least once in 2016 after Kao Corp 5,260.00 -0.92 1,725,100 Schroders Plc 2,739.00 -0.72 37,920 European markets lower yester- 9.93 points, or 0.05%, to 18,471.55, the it started the year with four hikes on its Dai-Ichi Life Insurance 1,333.00 0.00 4,710,500 Sainsbury (J) Plc 243.70 0.21 1,830,871 Mazda Motor Corp 1,545.50 1.54 4,415,000 day after White House candidate S&P 500 gained 1.13 points, or 0.05%, radar. Sage Group Plc/The 723.50 -0.34 848,906 S Komatsu Ltd 2,213.00 -0.70 4,286,700 Hillary Clinton demanded price cuts on to 2,176.57 and the Nasdaq Composite “There is basically just a bit of risk Sabmiller Plc 4,369.00 -0.02 562,112 West Japan Railway Co 5,931.00 -1.51 770,400 a successful drug, while many investors added 6.73 points, or 0.13%, to 5,224.43 aversion ahead of Jackson Hole,” said Rsa Insurance Group Plc 502.00 -0.89 1,017,406 Murata Manufacturing Co Ltd 12,935.00 4.15 927,100 Royal Mail Plc 524.50 0.29 558,956 awaited headlines from a big gathering in early trading. CMC Markets senior analyst Michael Kansai Electric Power Co Inc 871.50 -0.66 1,763,100 Royal Dutch Shell Plc-B Shs 1,953.00 -0.20 1,529,818 of central bankers. In Europe, Frankfurt and Paris lost as Hewson. “I think expectations are way Denso Corp 4,127.00 0.36 1,653,800 Royal Dutch Shell Plc-A Shs 1,877.50 -0.05 1,902,423 Healthcare stocks were a major much as 1.2% in a region-wide slide but too high, though, I don’t think Yellen Sompo Japan Nipponkoa Holdin 3,237.00 -0.03 1,329,500 Royal Bank Of Scotland Group 197.30 -0.65 2,981,934 sets as much importance on Jackson Daiwa House Industry Co Ltd 2,639.50 0.11 2,578,700 weight on the FTSE 100, with Hikma, pared losses during later trading. Rolls-Royce Holdings Plc 774.50 -1.78 1,434,946 Jx Holdings Inc 377.30 -1.67 8,837,800 Shire and AstraZeneca falling between The euro rose 0.1% against the dollar Hole as Ben Bernanke did.” Rio Tinto Plc 2,395.50 0.23 1,261,098 Nippon Steel & Sumitomo Meta 1,995.00 -2.23 2,002,500 1.4% to 3.5%. to $1.1276. The euro rose despite a weak The US dollar, which is looking for Rexam Plc 0.00 0.00 - Suzuki Motor Corp 3,241.00 -0.92 1,788,200 any signal on whether rates will rise this Relx Plc 1,447.00 0.28 682,507 London’s FTSE closed 0.28% lower. German IFO survey showing German Nippon Telegraph & Telephone 4,645.00 -1.23 2,256,700 Reckitt Benckiser Group Plc 7,443.00 0.55 259,270 The losses followed Democratic business morale deteriorated sharply year, tipped lower to $94.738 against a Ajinomoto Co Inc 2,295.50 -0.93 2,002,700 Randgold Resources Ltd 7,630.00 0.20 147,626 nominee Clinton’s call for a lower price in August as Brexit shock weighed on basket of major currencies and was fl at Mitsui Fudosan Co Ltd 2,150.00 -0.56 3,950,000 Prudential Plc 1,360.00 -1.45 1,393,417 for Mylan’ allergy drug EpiPen, which sentiment. against the yen at 100.49. Ono Pharmaceutical Co Ltd 2,800.00 -2.51 3,655,000 Provident Financial Plc 2,953.00 -0.37 75,857 Daikin Industries Ltd 9,094.00 -1.35 1,339,900 has become four times more expensive “Business confi dence in Germany Oil prices rebounded from a selloff in Persimmon Plc 1,864.00 -2.46 641,856 Bank Of Yokohama Ltd/The 0.00 0.00 - in the past decade. has clearly worsened,” Ifo head Clem- the previous session, rising nearly 1% Pearson Plc 854.50 -0.98 1,073,681 Toray Industries Inc 976.10 -0.78 4,769,000 “(This) serves to strike fear into ens Fuest said in a statement.”The Ger- before stepping back slightly, on ex- Paddy Power Betfair Plc 9,640.00 -0.98 19,383 Astellas Pharma Inc 1,619.50 -2.03 8,095,500 Old Mutual Plc 197.90 0.76 4,227,536 the hearts of healthcare groups and man economy has fallen into a summer pectations that the dollar would weak- Bridgestone Corp 3,427.00 0.79 2,678,900 Next Plc 5,560.00 -1.16 101,191 their investors everywhere,” Mike van slump.” en ahead of Yellen’s speech. Sony Corp 3,371.00 -0.06 5,721,300 National Grid Plc 1,073.50 0.94 1,209,298 Dulken, head of research at Accendo Wall Street stayed fl at to positive as Crude futures also saw support from Hoya Corp 3,932.00 0.20 706,000 Mondi Plc 1,585.00 0.70 415,070 Markets, said in a note. “The industry investors waited for Federal Reserve players buying on dips and looking Sumitomo Mitsui Trust Holdin 341.30 0.53 12,823,000 Merlin Entertainment 479.10 -1.01 332,602 Japan Tobacco Inc 3,923.00 0.56 2,811,400 (is)... treading the fi ne line between chair Janet Yellen to deliver the key- for a bottom on speculation that next Mediclinic International Plc 1,033.00 0.78 224,935 Osaka Gas Co Ltd 404.10 -0.39 3,332,000 balancing the costs of clinical success note speech at a global central bank- month’s informal meeting between Marks & Spencer Group Plc 347.30 2.75 3,739,988 Sumitomo Electric Industries 1,428.50 0.25 2,661,000 (and failure) with the economic laws of ing conference in Jackson Hole, Wyo- Opec and other major oil producers London Stock Exchange Group 2,795.00 -0.96 74,276 Daiwa Securities Group Inc 583.80 0.57 3,581,000 Lloyds Banking Group Plc 58.72 -0.93 48,336,210 supply and demand.” ming, today, where Fed chiefs have could result in production curbs. Softbank Group Corp 6,700.00 1.62 8,555,600 Legal & General Group Plc 207.60 -1.33 4,799,324 Mizuho Financial Group Inc 169.10 0.36 67,693,000 Land Securities Group Plc 1,096.00 -1.62 612,834 Nomura Holdings Inc 459.40 0.46 11,093,500 Kingfisher Plc 373.40 -0.16 1,589,178 HONG KONG HONG KONG Daiichi Sankyo Co Ltd 2,369.00 -0.77 2,483,500 Johnson Matthey Plc 3,300.00 -0.54 112,843 Fuji Heavy Industries Ltd 3,816.00 0.39 2,098,600 Itv Plc 203.30 0.74 8,340,516 Ntt Docomo Inc 2,668.00 -0.21 3,781,000 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intu Properties Plc 315.40 0.38 1,549,076 Sumitomo Realty & Developmen 2,656.50 -1.04 2,473,000 Intl Consolidated Airline-Di 395.50 -1.54 2,664,736 Aluminum Corp Of China Ltd-H 2.86 0.35 8,906,135 Hong Kong & China Gas 14.52 0.28 12,289,567 Sumitomo Metal Mining Co Ltd 1,271.00 -4.87 5,382,000 Intertek Group Plc 3,572.00 0.06 51,357 Bank Of East Asia Ltd 31.60 -0.32 1,335,975 Hong Kong Exchanges & Clear 189.10 0.00 2,348,469 Orix Corp 1,409.50 -0.14 4,476,500 Intercontinental Hotels Grou 3,296.00 -0.69 162,464 Bank Of China Ltd-H 3.41 0.00 236,773,288 Hsbc Holdings Plc 55.45 0.45 20,007,306 Asahi Group Holdings Ltd 3,310.00 0.00 1,595,700 Inmarsat Plc 803.00 -0.93 273,806 Bank Of Communications Co-H 5.73 0.17 34,240,213 Hutchison Whampoa Ltd 0.00 0.00 - Keyence Corp 71,860.00 -0.18 84,100 Informa Plc 711.00 -0.70 329,426 Belle International Holdings 5.10 1.59 18,894,968 Ind & Comm Bk Of China-H 4.93 0.61 339,313,353 Nidec Corp 9,174.00 -0.16 557,400 Imperial Brands Plc 4,050.50 1.11 376,843 Boc Hong Kong Holdings Ltd 25.85 -0.96 8,416,857 Li & Fung Ltd 3.94 0.00 8,629,342 Isuzu Motors Ltd 1,201.00 -1.84 2,485,100 Hsbc Holdings Plc 541.80 0.13 9,322,479 Cathay Pacific Airways 11.32 1.62 13,660,985 Mtr Corp 42.35 0.47 2,267,320 Unicharm Corp 2,488.00 0.91 2,579,900 Hargreaves Lansdown Plc 1,327.00 -0.90 108,387 Ck Hutchison Holdings Ltd 98.00 -0.81 4,863,974 New World Development 9.68 -0.72 13,044,541 Shin-Etsu Chemical Co Ltd 7,158.00 -2.25 2,035,500 Hammerson Plc 572.00 -3.13 577,591 China Coal Energy Co-H 3.57 -4.03 17,547,110 Petrochina Co Ltd-H 5.22 -0.95 67,910,016 Smc Corp 27,175.00 -2.07 291,400 Glencore Plc 178.15 -3.18 30,980,803 China Construction Bank-H 5.82 1.39 363,139,067 Ping An Insurance Group Co-H 40.00 0.25 27,814,777 Mitsubishi Corp 2,117.00 -0.19 3,835,600 Glaxosmithkline Plc 1,653.00 -0.33 2,519,363 China Life Insurance Co-H 18.46 0.98 40,455,832 Power Assets Holdings Ltd 76.45 0.20 1,950,757 Nintendo Co Ltd 22,240.00 -0.65 1,502,300 Gkn Plc 307.00 -1.48 1,883,578 China Merchants Port Holding 22.30 0.45 1,553,566 Sino Land Co 13.54 -2.17 9,811,920 Eisai Co Ltd 5,957.00 -0.18 1,434,200 Fresnillo Plc 1,763.00 0.06 460,026 China Mobile Ltd 96.50 -0.87 9,879,102 Sun Hung Kai Properties 110.20 1.29 4,401,468 Sumitomo Corp 1,095.00 0.23 3,093,100 Experian Plc 1,518.00 0.33 383,774 China Overseas Land & Invest 25.35 -2.50 31,839,537 Swire Pacific Ltd - Cl A 86.00 0.12 1,035,678 Canon Inc 2,887.00 0.00 2,494,300 Easyjet Plc 1,105.00 -0.99 517,087 China Petroleum & Chemical-H 5.57 -0.36 69,434,209 Tencent Holdings Ltd 199.50 -0.75 10,991,731 Japan Airlines Co Ltd 3,154.00 2.24 2,958,800 Dixons Carphone Plc 375.00 -3.10 849,715 China Resources Beer Holdin 17.08 2.15 10,605,526 Wharf Holdings Ltd 55.70 -0.54 5,953,254 Direct Line Insurance Group 367.80 -1.08 696,900 China Resources Land Ltd 20.65 -2.36 12,674,820 China Resources Power Holdin 13.26 -0.90 7,766,500 Diageo Plc 2,158.00 0.89 517,688 SENSEX Dcc Plc 7,025.00 -0.50 49,340 China Shenhua Energy Co-H 13.68 -0.15 17,874,778 GCC INDICES Crh Plc 2,573.00 4.21 1,655,738 China Unicom Hong Kong Ltd 9.05 -0.33 25,240,572 Compass Group Plc 1,473.00 0.27 509,973 Company Name Lt Price % Chg Volume Citic Ltd 12.46 -1.42 6,368,000 Indices Lt Price Change Coca-Cola Hbc Ag-Di 1,685.00 -0.30 84,865 Clp Holdings Ltd 80.35 1.39 2,753,240 Doha Securities Market Zee Entertainment Enterprise 510.80 -2.11 1,784,532 11,134.81 - 51.33 Centrica Plc 237.10 0.42 2,785,893 Cnooc Ltd 9.52 -0.94 70,177,328 Saudi Tadawul Yes Bank Ltd 1,343.55 0.43 3,998,567 5,976.89 - 51.00 Carnival Plc 3,609.00 -1.50 85,008 Cosco Shipping Ports Ltd 8.23 1.35 4,023,280 Kuwait Stocks Exchange Wipro Ltd 504.00 -3.01 5,025,049 5,428.91 - 6.62 Capita Plc 1,052.00 -0.85 242,385 Esprit Holdings Ltd 6.55 1.71 895,965 Bahrain Stock Exchage Vedanta Ltd 169.90 -3.47 10,525,318 1,146.37 - 6.32 Burberry Group Plc 1,345.00 -0.59 381,145 Fih Mobile Ltd 2.54 -1.93 7,538,000 Oman Stock Market Ultratech Cement Ltd 3,789.50 -0.60 508,128 5,823.06 - 30.23 Bunzl Plc 2,396.00 0.21 112,048 Hang Lung Properties Ltd 17.70 0.00 2,813,152 Abudhabi Stock Market Tech Mahindra Ltd 458.10 -1.92 1,913,749 4,519.83 + 6.67 Bt Group Plc 396.45 0.13 2,596,050 Hang Seng Bank Ltd 135.30 0.07 894,793 Dubai Financial Market Tata Steel Ltd 372.30 -2.01 5,412,843 3,492.22 + 11.76 British Land Co Plc 662.00 -0.82 1,753,797 Henderson Land Development 46.50 0.87 1,881,821 Tata Power Co Ltd 75.65 -1.05 4,889,116 British American Tobacco Plc 4,825.00 0.51 773,880 Tata Motors Ltd 493.85 -0.90 9,138,390 Bp Plc 430.60 0.37 6,226,437 Tata Consultancy Svcs Ltd 2,551.05 -0.82 1,017,792 Bhp Billiton Plc 1,047.00 -0.48 2,136,951 Sun Pharmaceutical Indus 764.95 -0.62 2,547,637 Berkeley Group Holdings/The 2,679.00 -1.51 223,921 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 250.15 -1.67 22,550,830 Barratt Developments Plc 492.00 -1.70 3,077,679 Reliance Industries Ltd 1,012.70 -0.76 3,576,532 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Barclays Plc 165.00 -0.93 13,199,610 Punjab National Bank 125.75 -0.47 5,477,800 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Bae Systems Plc 529.00 -0.28 1,048,352 Power Grid Corp Of India Ltd 182.25 -0.03 7,726,411 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Babcock Intl Group Plc 1,029.00 -0.39 143,908 Oil & Natural Gas Corp Ltd 237.80 -1.33 2,972,805 this data.” Aviva Plc 418.30 -0.43 2,392,034 Ntpc Ltd 158.65 -1.64 7,235,370 Astrazeneca Plc 5,001.00 -1.56 968,817 Maruti Suzuki India Ltd 4,933.70 -0.30 960,773 Associated British Foods Plc 2,943.00 -0.84 120,954 Mahindra & Mahindra Ltd 1,413.85 -1.46 1,032,237 Ashtead Group Plc 1,251.00 0.89 557,481 Lupin Ltd 1,522.15 0.03 2,024,701 CURRENCIES Arm Holdings Plc 1,688.00 0.00 1,416,235 Larsen & Toubro Ltd 1,454.65 -1.28 1,861,818 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Antofagasta Plc 530.50 -0.28 1,133,472 DINAR DINAR Kotak Mahindra Bank Ltd 780.75 0.48 1,512,354 Anglo American Plc 842.10 -0.77 2,187,725 Itc Ltd 253.45 1.28 10,229,940 Admiral Group Plc 2,070.00 -0.77 220,798 Infosys Ltd 1,036.15 -2.01 2,517,971 3I Group Plc 618.00 -0.32 359,141 Indusind Bank Ltd 1,182.05 -0.06 892,278 Idea Cellular Ltd 95.65 -2.75 10,092,726 Icici Bank Ltd 246.95 -0.60 13,996,960 TOKYO Housing Development Finance 1,357.50 -1.83 1,906,112 Hindustan Unilever Ltd 910.80 -0.94 1,823,085 Hindalco Industries Ltd 154.25 -1.75 7,595,525 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 3,304.60 -0.18 476,405 East Japan Railway Co 8,987.00 -0.64 965,600 Hdfc Bank Limited 1,258.55 -0.26 2,275,921 Itochu Corp 1,191.00 -0.38 4,306,400 Hcl Technologies Ltd 798.05 0.97 2,292,493 Fujifilm Holdings Corp 3,771.00 0.75 1,845,500 Grasim Industries Ltd 4,528.35 -0.98 279,229 Yamato Holdings Co Ltd 2,427.50 -0.16 2,266,400 Gail India Ltd 373.10 2.07 5,674,775 Chubu Electric Power Co Inc 1,349.50 0.56 2,322,300 Dr. Reddy’s Laboratories 3,050.30 0.35 498,190 Mitsubishi Estate Co Ltd 1,957.00 -0.08 3,789,000 Coal India Ltd 331.30 -0.79 3,753,378 Mitsubishi Heavy Industries 425.60 0.92 10,125,000 Cipla Ltd 562.90 -0.76 3,600,420 Toshiba Corp 306.70 -0.32 19,463,000 Cairn India Ltd 201.15 -2.12 4,339,605 Shiseido Co Ltd 2,539.00 -4.71 3,689,800 Bosch Ltd 23,771.85 0.39 23,020 Shionogi & Co Ltd 4,740.00 -0.57 1,674,300 Bharti Airtel Ltd 346.00 -1.87 3,323,786 Tokyo Gas Co Ltd 437.80 -0.02 5,158,000 Bharat Petroleum Corp Ltd 598.25 2.84 5,884,866 Tokyo Electron Ltd 9,084.00 -1.25 1,418,900 Bharat Heavy Electricals 140.90 3.00 14,450,885 Panasonic Corp 1,019.00 -1.26 7,268,000 Bank Of Baroda 161.95 -0.74 10,533,463 Fujitsu Ltd 506.10 -0.20 10,285,000 Bajaj Auto Ltd 2,862.40 -0.25 209,000 Central Japan Railway Co 17,230.00 -0.35 419,200 Axis Bank Ltd 586.55 0.54 17,546,588 T&D Holdings Inc 1,126.50 1.08 2,681,700 Asian Paints Ltd 1,105.90 -1.16 589,335 Toyota Motor Corp 6,116.00 -0.07 6,792,500 Ambuja Cements Ltd 265.00 -0.79 5,373,222 Kddi Corp 3,098.00 -1.90 9,969,100 Adani Ports And Special Econ 261.75 -3.09 8,798,103 Nitto Denko Corp 6,891.00 0.85 1,281,400 Acc Ltd 1,645.80 -0.10 206,602

Gulf Times 10 Friday, August 26, 2016 BUSINESS Geneva’s corporate-tax fi ght becomes ‘mother of all battles’

Bloomberg Swiss city’s competitive position, ac- at the Geneva Chamber of Commerce, number of smaller economies such ($475mn) hole in Geneva’s fi nances, rate.” Opposition to the new rate from Geneva cording to Credit Suisse Group. Industry and Services. as Ireland’s 12.5% and Montenegro, according to the people familiar. The left-leaning political parties will prob- “I could see Geneva going up very “We can’t aff ord to lose it because the which has the region’s lowest rate of shortfall is likely to be something close ably trigger a referendum as it would high in the ranks,” said Thierry Boi- attractiveness of Geneva and the shape 9%. That will mean Geneva competes to that, said Roland Godel, a Geneva only require 500 signatures. hen the European Union telle, a lawyer at Bonnard Lawson in that our economy will take for genera- with Ireland, the Netherlands and the fi nance department spokesman, who In a March plebiscite in the neigh- pressured Switzerland to the city. tions to come are at risk here.” UK. as a low-tax jurisdiction, while it declined to comment further on the bouring canton of Vaud, 87.1% of Wscrap tax breaks for foreign “International companies will be A rate of about 13% would see Ge- may also provide Zurich with stiff er reform before next week’s announce- voters backed cutting the corporate companies, Geneva had most to lose. glad to have some certainty when the neva jump 13 places to become the competition for Swiss corporates, said ment. tax rate to 13.79% from 21.65%. That Now, the canton that’s home to al- new rate is fi nally implemented.” third-most attractive of Switzer- Boitelle. “The real challenge will be on the change will probably mean fewer re- most 1,000 multinationals is set to use Like the rest of Switzerland, Geneva land’s 26 cantons, trailing only Zug Still, tax alone won’t be enough to budget side,” said Elias Hafner, an sources to spend on theatres, muse- tax to burnish its appeal. has been buff eted by the strong franc and Zurich, according to a study by turn Geneva’s fortunes around, ac- economist at UBS Group AG, adding ums, street-cleaning and creches in Geneva will on August 30 pro- and concern over immigration quotas, Credit Suisse. cording to the lawyer, who highlights that Geneva’s higher ratio of public of- the canton’s main city Lausanne, ac- pose cutting its corporate tax rate while the demise of banking secrecy has “Geneva and the western part of the need for Switzerland to resolve the fi cials to residents than other parts of cording to municipal councillor Flor- to 13.49% from 24.2%, according to hurt the city’s fi nancial industry. Switzerland will be even more attrac- issues caused by voters backing a refer- Switzerland provides scope for cuts. ence Germond. three people with knowledge of the The stakes are high for the politicians tive for fi rms, especially compared to endum in 2014 to introduce quotas for That’s a concern for Romain de Failure to agree on a competitive tax matter. For an interim period of five contemplating a tax rate to underpin France,” said Thomas Ruehl, head of EU migrants. Sainte Marie, head of the Socialist Par- rate in Geneva could result in an exo- years, the rate will be a slightly higher the French-speaking canton’s allure: regional research at Credit Suisse. “We “Tax reform won’t change that,” said ty in Geneva’s cantonal parliament. dus of multinationals, cutting cantonal 13.79%, said the people who asked not multinationals from Procter & Gamble see the corporate tax reform as a big op- Boitelle. “Geneva’s appeal lies in a good “We need an attractive tax rate and revenues by an even greater margin, be named as the matter hasn’t been Co to commodity trader Mercuria En- portunity for Geneva.” business culture, plus quality of life, a we do want to retain most jobs in Ge- said Denis Berdoz, a partner at Baker & made public. ergy Group account for 76,000 jobs and France, which borders the canton well-educated workforce and stability. neva, but we must also guarantee the McKenzie in Geneva, who specialises in While that’s 2.2 percentage points 40% of the economy. to the south, east and west, has a tax They need to come up with some kind same level of public service,” said de tax and corporate law. higher than the average preferential “It’s the mother of all battles for us,” rate of 33.33%, according to fi gures of solution for the immigration issue.” Sainte Marie. “For Geneva’s attractive- “They don’t really have a choice,” rate currently off ered to many foreign says Vincent Subilia, deputy director published by KPMG. Within Europe, The new taxation regime will ness, the quality of public services is said Berdoz. “If the companies leave, fi rms, the new regime will improve the of international aff airs and arbitration Geneva’s rate would only exceed a also leave a projected 459mn-franc just as important as the corporate tax the loss could be much higher.”

CORPORATE RESULTS CNOOC reports $1.16bn loss for first half of 2016

due to lower tourist traff ic, which has also dented He added the financial impact of a deal announced sales at other luxury retailers such as Michael Kors with Amazon to show Fremantle drama “American Holdings and Kate Spade & Co. Gods” on Amazon Prime — part of a burgeoning Tiff any’s net income inched up to $105.7mn, or 84 business with so-called over-the-top Internet play- cents per share, in the quarter ended July 31 from ers — would first be felt in 2017. $104.9mn, or 81 cents per share, a year earlier. Analysts welcomed the raised guidance and divi- Analysts on average were expecting profit to drop dend but expressed some concern over the second to $89.8mn, or 72 cents per share, according to quarter. Thomson Reuters I/B/E/S. RTL’s chief financial off icer Elmar Heggen said the The company’s selling, general and administra- company had ample scope for acquisitions even tive costs fell 4.3% to $402.2mn, helped by lower after paying the interim dividend of 1 euro per marketing costs. share in September. Its gross margin increased to 61.9% from 59.9%. It spent a total of €48mn in the first half on Tiff any maintained its full-year profit forecast of a acquisitions and stepping up its stakes in existing net sales falling in the low single-digits in percent- investments, and has an annual budget of around age terms, and earnings per share declining in the €250mn. mid-single-digit percentage range. Tiff any’s profitability for the rest of the year will Woolworths Holdings likely get a boost from the recent drop in prices of precious metals such as silver, gold and platinum, South African retailer Woolworths Holdings Edward Jones analyst Brian Yarbrough wrote in a reported an 8.9% rise in full-year profit as its food pre-earnings note. sales gained more market share despite a weak The company’s total net sales fell 5.9% to $931.6mn economy its home market. in the latest quarter, while analysts were expecting Adjusted diluted headline earnings per share was $934.74mn. 453.4 cents for the year until June 30 compared to Sales at its stores open for more than a year 416.4 cents in the previous year. dropped 8%, steeper than the 6.90% decline Woolworths Food continues to gain market share, analysts were expecting, according to research firm the company said. Consensus Metrix. Headline earnings per share (EPS) is the main profit measure used in South Africa that strips out certain China Construction Bank one-off times. The retailer bought Australian department store China Construction Bank Corp (CCB), the country’s David Jones in 2014. second-biggest lender by assets, reported a 1.1% “The South African customer continues to be under increase in first-half net profit but said bad debt pressure, and the Australian trading environment continued to rise. continues to be tough,” Woolworths said in a state- CCB said net profit for the first six months of the ment. year totalled 133.41bn yuan ($20 bln), up from Both markets have become more competitive with 131.9bn yuan a year earlier. the arrival of northern hemisphere retailers and The first-half figure implies a net profit of 65.46bn increased promotional activity, the company said. China’s main off shore oil and gas producer CNOOC its portfolio in the New York region. The group also aside for income taxes more than halved to $59mn, yuan in the second quarter, up from 64.9bn yuan saw its shares on the Hong Kong stock exchange said online sales were up more than 30%. from a year earlier. in the year-earlier period, according to Reuters Rusal fall yesterday, after it reported a $1.16bn net loss for Ahold and Delhaize have 6,750 stores in Europe Medtronic’s net earnings rose to $929mn, or 66 calculations. the first half of 2016. and the United States and employ 380,000 people. cents per share, in the first quarter, from $820mn, That compared with an average forecast of 64.56bn Russian aluminium giant Rusal said yesterday net It was the company’s first half-year loss since it Based in Zaandam just outside Amsterdam, Ahold or 57 cents per share, a year earlier. yuan by three analysts, according to data compiled profit fell 70% in the first half of 2016, as weak- started trading on the Hong Kong exchange in announced the merger in June last year to create The company had an extra week of sales in last by Reuters. nesses in global commodities markets keeps prices 2000, with CNOOC blaming low oil prices and one of the world’s largest retail companies with a year’s first quarter. The bank’s non-performing loan (NPL) ratio was depressed. write-downs on assets for its performance. turnover of more than €54bn ($59bn). Excluding items, Medtronic earned $1.03 per share, 1.63% as of end-June, unchanged from end-March, The cost of aluminium sank to six-year lows below “Further recovery of international oil prices faces Analysts forecast the merger will create the fifth- ahead of the average analyst estimate of $1.01 per but the volume of NPLs rose to 181.949bn yuan at $1,500 a ton in 2015 as a growth slowdown and headwinds,” the company said in a statement sent largest grocery chain in the fiercely-contested US share, according to Thomson Reuters I/B/E/S. end-June from 176.424bn at end-March. overcapacity in key market China hammered to the Hong Kong bourse late Wednesday. market and the fourth-largest in Europe. Revenue fell 1.5% to $7.17bn, in-line with the average Net interest margin narrowed to 2.32% by end-June, demand. CNOOC posted a net loss for the six months ending The pair achieved total sales last year of €62.6bn — analyst expectation. from 2.40% three months prior. Prices have only recovered marginally, sitting just June 30 of 7.74bn yuan ($1.16bn), alongside a 25.4% €38.2bn for Ahold and €24.4bn for Delhaize. The impact of a stronger dollar took $7mn out of Bank of Communications Co, China’s fifth-largest below $1,700 now and well off a peak above $2,300 drop in revenue to 66.83bn yuan. The two groups see themselves as complementary quarterly revenue, which would have otherwise listed lender by assets, reported near flat first-half seen in 2012. This was in line with a warning the firm issued in in the US market, where Ahold is present mostly risen more than 5% on a constant currency, con- profit yesterday. The European Union Chamber of Commerce July saying it could see an 8.0bn yuan (1.2bn) net in the northeast with its Stop&Shop brand, while stant weeks basis. warned in February that the eff ect of China’s huge loss, compared to a net profit of 14.7bn yuan in the Delhaize’s Food Lion is prevalent in the southeast. Medtronic gets nearly half of its revenue from Sears Holdings stockpiles was wreaking “far reaching” damage on same period last year. outside the United States. the global economy. CNOOC said it saw an impairment loss of ap- Sberbank Sales in its cardiac and vascular unit, where Sears Holdings Corp posted a net loss due to lower With this backdrop, Rusal posted a net profit proximately 10.4bn yuan for the period on “fields in Medtronic sells defibrillators, pace-makers, heart sales of home appliances and apparel, and the com- of $261mn for the first six months of this year, North America, Europe and Africa”. Russia’s top bank Sberbank yesterday improved its valves and stents, dipped 2.1% to $2.52bn, account- pany said it accepted debt financing of $300mn compared with $879mn in the same period in This was “primarily due to the revision of the guidance for certain financial metrics for this year, ing for about 35% of total sales in the first quarter. from Chief Executive Edward Lampert’s hedge 2015, it said in a statement to the Hong Kong stock estimation for the oil price forecast and the according to a presentation. Up to Wednesday’s close, Medtronic had risen fund, ESL Investments. exchange yesterday. adjustment in operating plan for oil sand assets in Sberbank said it now expects return on equity in about 12% in the last 12 months. The struggling retailer also said yesterday it had Revenue fell 17.9% to $3.89bn. Canada.” 2016 in the high teens, versus previous guidance of received interest from potential partners for its “Throughout the first half of the year, the alu- CNOOC acquired Canada’s Nexen Energy in 2013 mid-to-high teens, and cost of risk of around 200 Signet Jewellers home-improvement service business and some of minium industry remained under strong pressure for $15bn, which many analysts said was too much. basis points (bps) versus 200-250 bps previously. its best-known brands, which it is exploring options as the weak commodity environment continued,” The company warned of tough conditions for the It also said yesterday it saw the Russian economy Signet Jewellers reported an unexpected drop in for. chief executive off icer Vladislav Soloviev said in the rest of the year, saying it would be “complex and contracting by 0.5% in 2016 with an average Urals comparable sales for the second quarter due to The owner of the Sears department store and statement. volatile”. oil price of $41 per barrel, a smaller fall than was weaker demand for its Sterling and Zale lines of Kmart discount store chains reported a 5.2% drop Soloviev described a slight recovery in the price of “Uncertainties still remain in both the international seen before. jewellery. in comparable store sales for the second quarter the metal in the second quarter of the year, helped and domestic macro environment,” it said. Earlier yesterday Sberbank posted record quarterly Sales at Signet’s stores open for more than a year ended July 30. by strong demand and tightening of China’s sup- CNOOC’s shares fell 1.8% in Hong Kong during profit in the second quarter. fell 2.3% in the quarter ended July 30. The company posted a net loss attributable to ply, had contributed to improved numbers in the Wednesday morning trade. Analysts on average were expecting sales to shareholders of $395mn, or $3.70 per share, in the period. China’s economic growth slowed to 6.7% in the first Medtronic increase 1%, according to research firm Consensus quarter, compared with a profit of $208mn, or $1.84 Profit for the second quarter rose 7.1% from the quarter, its weakest quarterly expansion in seven Metrix. per share, a year earlier. previous three months to $135mn. years. Medtronic, the world’s largest standalone medical Signet cut its current-year adjusted profit forecast However, that is still down 56% year on year. Plunging crude prices have hurt other major Chi- device maker, reported a better-than-expected to $7.25 to $7.55 per share, from $8.25 to $8.55 RTL China Hongqiao Group surpassed Rusal as the nese energy firms. quarterly profit, helped by lower costs and a lighter per share, citing challenging market conditions in world’s biggest producer of aluminium in the first PetroChina’s net profit plunged 97.9% in the first tax burden. energy-dependent regions. European broadcast group RTL reported a 2% half of last year. half of this year, at 531mn yuan ($79.9mn), down Medtronic has been beefing up its portfolio of de- Comparable sales at Sterling Jewellers, the compa- decline in sales in the second quarter due to lower drastically from the 25.4bn yuan it made in the vices for treating heart diseases and delving deeper ny’s biggest brand by revenue, fell 3.1% as shoppers revenues at production unit FremantleMedia and CIBC same period last year. into the market for less-invasive surgical products. moved away from buying higher priced jewellery. competition for advertising revenue from the UEFA PetroChina also warned oil prices will continue to The company closed its $1.1bn deal for HeartWare Signet’s net sales fell 2.6% to $1.37bn in the quarter. European soccer championship. Canadian Imperial Bank of Commerce, Canada’s “keep fluctuating at a low level”. International earlier this week, and has also Net income rose to $81.9mn, or $1.06 per share, The result missed market expectations and sent fifth-biggest lender, reported a 47% rise in third- bought a stake in Israeli robotics company Mazor from $62.2mn, or 78 cents per share, a year earlier. RTL’s shares lower yesterday, but the Bertelsmann- quarter profit, helped by growth in its retail and Ahold Robotics. Separately, the company said aff iliates of private owned company said revenues would recover in business banking as well as capital markets units. The deals underscore Medtronic’s push to broaden equity firm Leonard Green & Partners will invest the second half, raised its full-year profit forecast The bank’s total net income rose to C$1.44bn Dutch retailer Ahold yesterday posted a 7.2% rise in its off erings in the minimally invasive surgical prod- $625mn in the company in the form of convertible and promised an interim dividend. ($1.12bn), or C$3.61 per share, in the quarter ended second quarter net profits to €209mn as it unveiled ucts market, which it entered with its acquisition of preferred shares. RTL said it now expected growth of 1 to 2.5% in July 31, from C$978mn, or C$2.42 cents per share, a its first returns since its July merger with Belgian Covidien last year. Jonathan Sokoloff , managing partner of Leonard 2016 earnings before interest, tax and amortisation year earlier. group Delhaize. Medtronic, which redomiciled to Ireland through Green & Partners, will join Signet’s board as a part (EBITA) instead of broadly stable EBITA, and con- CIBC said net income from its retail and business Sales were up 3% at €8.95bn ($10.11bn) year-on- the Covidien deal, currently relies on its core busi- of the deal. firmed it expected revenue growth of 2.5 to 5%. banking division rose 6% to C$666mn, helped by year, the group said, adding that third-quarter ness of developing and selling heart devices, spinal EBITA grew 3% in the quarter to €351mn, driven by higher volumes and fees. figures would be filed jointly with Delhaize. implants, insulin pumps among others. Tiff any & Co French broadcaster M6 and RTL Germany. Net income from the company’s capital markets Executive director Dick Boer praised the company’s The company also expects current-quarter revenue Both sales of €1.45bn and EBITA missed analysts’ unit rose 15% to C$304mn on higher revenue from operating income which he said came in at €355mn growth within its 5-6% range for full-year 2017 on a Upscale jeweler Tiff any & Co reported an unexpect- forecasts in a Reuters poll. interest rate and equity derivatives trading. — up 7.3% — and above the €336mn which analysts constant currency basis. ed rise in second-quarter profit, driven by lower “You can’t look at the production business on a CIBC has been expanding in the United States to surveyed by Bloomberg had forecast. Medtronic reiterated its forecast for full-year 2017 raw material costs, price hikes and the sale of more quarterly basis simply because of the nature of the help off set slow growth in its domestic market and In the United States, where Ahold makes around adjusted earnings of $4.60 to $4.70 per share. high-margin jewellery. business,” co-chief executive Guillaume de Posch said in June it would buy Chicago-based Private- two thirds of its overall sales, the group saw sales Total costs of products sold fell nearly 8% in the However, Tiff any’s sales dropped for the seventh said in an interview with Reuters, pointing out the Bancorp in a $3.8bn cash-and-share deal, its biggest rise 2.4% to €5.53bn after it added 25 A&P stores to first quarter ended July 29, while the amount it set straight quarter, and missed analysts’ estimates, uneven occurrence of large contracts. ever acquisition. Gulf Times Friday, August 26, 2016 11 BUSINESS Auto, aerospace industries warm to 3D printing

AFP es,” said Rich Garrity, Americas president for metals. And by making use of a “digital a press tour of its factory in Eden Prairie equipment industries. Stratasys execu- not yet make use of materials robust and Eden Prairie, US for Stratasys. “It’s not just a concept.” toolbox” and made-to-order technol- near Minneapolis. tives described the innovations as “step” durable enough for the most important The advances, by Stratasys, Siemens ogy, it can also can reduce the need for Stratasys on Wednesday showcased an changes but would not comment on car parts. and others, are beginning to push 3D warehouse space and many conventional “infinite build” printer that turns the plane a timeframe for commercialising the Boeing’s Finchamp said the aerospace New 3D printing technology unveiled printing well into the centre of manufac- manufacturing tools. of production on its side, allowing the technology. giant planned to use larger 3D parts on this week sharply increases the size of turing from around the edges. The ultimate prize is finished items printing of items of “practically unlimited “We are confident where we are in commercial airplane interiors as soon as objects that can be produced, off ering 3D printing employs sophisticated com- equal in quality to today’s goods, but part size,” according to the company. terms of development and we wanted to this year. new possibilities to remake manufacturing puter simulations and software to direct which are cheaper and faster to make. Also on display was a 3D robotic be able to demonstrate to the market our But questions about material strength in the auto, aerospace and other major “print” objects from powdered, molten Siemens argues that 3D printing, along demonstrator utilising Siemens software intent and where we’re heading,” Garrity clouds the outlook for use on larger industries. and filament materials like nylon, resins, with an increased role of robotics, greater that positions and rotates an item as it is said. parts. One application demonstrated by clays, thermoplastics and metals. automation and other innovations are printed. Even if the Stratasys innovations can “We have to be very cautious,” she told 3D printing machinery maker Stratasys The technology has not always lived up creating a “digital factory” that will force a The process, allowing for precise move- be made commercial quickly, there are AFP. “We’re very very conservative with would allow airlines to pick made-to-order to sky-high hype, but leading manufactur- day of reckoning among manufacturers. ments on an eight-axis motion system, is other barriers to more extensive use of 3D how to get things onto planes.” airplane interiors that could be tweaked ers remain bullish over its potential to “These technologies all evolve so fast,” suited to produce lightweight components printing. Pete Basiliere, an analyst at Gartner with the click of a mouse. shake up the factory floor. said Andreas Saar, a vice president for ad- that must also be very strong. A key challenge for the auto industry, who specialses in imaging and print serv- By turning the manufacturing plane “It is something that is going to be a ditive manufacturing at Siemens. During the visit, the device was building a relatively high-volume sector, will be ices, said greater consumer interest in 3D vertical from the standard horizontal, game-changer,” said Teresa Finchamp, “We believe if people don’t connect, a black ribbed dome that could be used matching the eff iciency of conventional printing could help boost the technology. the “printer” has the potential to create director of operations and quality in Boe- they’re going to have a huge problem,” he on a rocket. manufacturing, experts say. “As consumers start to realise that they components of unlimited size. ing’s department for new technologies. told AFP. Stratasys says the applications of the Ellen Lee, who is in charge of bringing can (customise) and not at tremendous “We’re now talking about parts in feet Benefits include the ability to reduce Boeing, Siemens and Ford are all robotic technology are broad and could 3D printing into the manufacturing proc- cost, then you’re going to see the demand and metres versus centimetres and inch- weight by substituting plastic compounds corporate partners of Stratasys that joined also be utilised in the oil and medical ess at Ford, also said the technology does jump,” he said.

Cook reaped $373mn in Uber said to lose at least stock in fi ve years as $1.2bn in fi rst half of 2016 Apple CEO Bloomberg Bloomberg New York San Francisco im Cook, who marked his he ride-hailing giant Uber Technologies fi ve-year anniversary as is not a public company, but every three TApple’s chief executive Tmonths, dozens of shareholders get on a offi cer on Wednesday, received conference call to hear the latest details on its shares valued at $373mn during business performance from its head of fi nance, that period as the iPhone mak- Gautam Gupta. er’s stock doubled on his watch. On Friday, Gupta told investors that Uber’s When Cook took the helm in losses mounted in the second quarter. Even in 2011, he was granted 1mn shares. the US, where Uber had turned a profi t during its Originally, 50% of those were fi rst quarter, the company was once again losing scheduled to vest on his fi ve- money. year anniversary, with the rest In the fi rst quarter of this year, Uber lost about coming due after a decade with $520mn before interest, taxes, depreciation and the company. That changed in amortisation, according to people familiar with 2013, when Cook voluntarily tied the matter. In the second quarter the losses sig- one-third of the award to out- nifi cantly exceeded $750mn, including a roughly performing the S&P 500 Index $100mn shortfall in the US, those people said. and the shares began vesting an- That means Uber’s losses in the fi rst half of 2016 nually. totalled at least $1.27bn. That hasn’t slowed him down Subsidies for Uber’s drivers are responsible much. He’s received 98.6% of for the majority of the company’s losses globally, the units available to him in Gupta told investors, according to people familiar his first five years, according to with the matter. An Uber spokesman declined to data compiled by Bloomberg. comment. Those were valued at $373mn “You won’t fi nd too many technology compa- at Wednesday’s close — and he nies that could lose this much money, this quick- can still earn the same number ly,” said Aswath Damodaran, a business professor of shares over the next half at New York University who has written scepti- decade. cally of Uber’s astronomical valuation on his blog. Cook’s payout is based on Ap- “For a private business to raise as much capital as ple returning 61% during the Uber has been able to is unprecedented.” past three years, placing it in the Bookings grew tremendously from the fi rst top-performing third of the S&P quarter of this year to the second, from above index, according to data com- $3.8bn to more than $5bn. Net revenue, under A passenger holds a smartphone displaying the Uber Technologies car service application in a taxi in Budapest. Subsidies for Uber’s drivers are responsible for piled by Bloomberg. Cook would generally accepted accounting principles, grew the majority of the company’s losses globally, the company’s head of finance Gautam Gupta told investors, according to sources. get all of his shares for 2016 un- about 18%, from about $960mn in the fi rst quar- der those terms. He’s earned ter to about $1.1bn in the second. “It’s hardly rare for companies to lose large sums like Benchmark Capital to the investment bank Lyft, a much smaller company by trip volume, 3.45mn shares under the plan Uber also told investors during the call that it of money as they try to build signifi cant markets Goldman Sachs. Altogether, Uber has raised more looks to be losing more money than Uber in the US when accounting for a 7-for-1 was changing how it calculates UberPool’s con- and battle for market share,” said Joe Grundfest, than $16bn in cash and debt. Its latest valuation is Lyft has told investors that it will keep its losses stock split in 2014. tribution to revenue in the second quarter, which professor of law and business at Stanford. a whopping $69bn. The company has eff ectively under $50mn a month, Bloomberg reported in Apple spokesman Josh Rosen- had the eff ect of artifi cially increasing revenue. “The interesting challenge is for them to turn redistributed at least $1bn to the Chinese work- April. stock declined to comment, and Uber’s losses and revenue have generally grown the corner to become profi table, cash-fl ow-pos- ing class in the form of heavy subsidies to drivers That would be about $150mn in a quarter. referred to a Jan. 6 proxy state- in lockstep as the company’s global ambitions itive entities.” there. “Uber and Didi Chuxing are investing bil- Uber’s US losses totalled about $100mn in the ment on Cook’s share awards. have expanded. Uber has lost money quarter af- The second quarter of 2016, which ended in lions of dollars in China and both companies have second quarter of this year. In July, Uber delivered The stock closed at $108.03 ter quarter. In 2015, Uber lost at least $2bn before June, could represent a nadir for Uber. The com- yet to turn a profi t there,” Uber chief executive of- 62mn rides to Lyft’s 13.9mn. Uber’s subsidies were Wednesday in New York, up interest, taxes, depreciation and amortisation. pany’s losses will likely fall. In July, it cut a deal fi cer Travis Kalanick wrote in a letter announcing spread over more rides. from a split-adjusted $53.74 on Uber, which is seven years old, has lost at least with its largest global competitor, Chinese ride- the company’s departure from China. Uber has about $8bn in the bank and will soon the day Cook took over the top $4bn in the history of the company. hailing behemoth Didi Chuxing, washing its Uber has been engaged in a fi erce price war receive $1bn in cash from Didi, according to a per- job. It’s hard to fi nd much of a precedent for Uber’s hands of its massive losses in that country. Didi with Lyft this year, and that has also contributed son familiar with the matter. Uber also has access Cook has used buybacks and losses. Webvan and Kozmo.com—two now-de- gave Uber a 17.5% stake in its business and a $1bn to the enormous losses. Uber told investors on to a $2bn credit line and a $1.2bn loan. dividend increases to help ensure funct phantoms of the original dot-com boom— investment in exchange for Uber’s retreat. Uber Friday’s call that it’s willing to spend to maintain “I think what Uber is trying to do is, ‘Hey, look, that Apple stock outperformed lost just over $1bn combined in their short life- lost at least $2bn in two years in China, people its market share in the US The company told in- we’re going to take the losses up front in order to the S&P 500 even as sales times. Amazon.com is famous for losing money familiar with the matter told Bloomberg in July. vestors that it believes Uber has between 84% get to disproportionate scale,’” said Robert Siegel, slowed. In 2013, he extended a while increasing its market value, but its biggest Uber won’t see any losses from China on its bal- and 87% of the market in the US, according to a lecturer in management at Stanford’s business share-buyback programme six- loss ever totalled $1.4bn in 2000. Uber exceeded ance sheet after August, the company said on Fri- person familiar with the matter. One investor said school. fold ahead of the introduction of that number in 2015 and is on pace to do it again day’s investor call. that he was expecting Uber to continue losing “The question is when they can get to profi t- the iPhone-6 the following year, this year. Uber’s backers range from venture capital fi rms money in the US for the next quarter or two. ability.” which reignited growth.

Apple weighs iPhone video editing app in renewed push on social media

Bloomberg Ping in 2010. Now as Snapchat and messages, an App Store with plug-ins its daily users create their own photo- has killed potential applications mid- said. The company has also worked to San Francisco Facebook’s Instagram and Messenger for sending animated images and stick- and-video “Stories” of their daily lives. development in the past. For exam- consolidate communications between apps grow atop Apple’s iOS mobile op- ers, and tools to draw on top of photos Apple’s current plan calls for its project ple, the company considered releasing users into single panels. For example, erating system, Apple is seeking to cre- and videos. to become a stand-alone app, presum- the new Memories machine-learning two friends could be able to see all text pple, seeking to capitalise on the ate its own features to remain relevant, Now Apple is starting to develop a ably as a download via the App Store, based photo management feature as its messages, e-mails, and social network popularity of social networks, is particularly for younger users. video sharing app that allows users to but the company may decide to pack- own app before bundling it within the interactions between each other in a Adeveloping a video sharing and Social media’s importance can be record video, apply fi lters and draw- age the functionality into the iPhone’s standard iPhone photos program, ac- single window, one of the people said. editing application and is testing new seen in the amount of time people ings to the media — much like Snap- existing camera application, the people cording to one of the people. The eventual launch and scale of the related features for its iPhone and iPad spend with the apps. For example, Fa- chat does — and send it to contacts said. Separate from its video sharing app, integrated social features are contin- operating systems. cebook’s mobile users are on its News or via existing social networks such The app is being developed in the Apple has developed and tested multi- gent upon approval from a team inside The early plans are part of a newly Feed, Instagram and Messenger an av- as Twitter Inc, according to the peo- same Apple department that developed ple social-related features for its iPhone Apple that analyses the privacy impli- directed focus to integrate social net- erage of 50 minutes a day, while Snap- ple familiar with its development. The Final Cut Pro and iMovie software, ac- and iPad operating system over the past cations of products before their intro- working applications within Apple’s chat’s 150mn daily active users spend software is currently being designed cording to the people. Apple hired Joe year that have yet to be released, accord- duction, according to a person famil- mobile products and are a response to an average of 30 minutes per day with to be used mostly with one hand and Weil, the former president of a New ing to people familiar with the matter. iar with the matter. This team has the the success of social media-focused the photo- and video-sharing app. Of with the intention that video could be York-based video production compa- One system that has been tested and still power to veto new features if they could companies such as Facebook and Snap- the top 10 free third-party iPhone apps shot, edited, and uploaded in less than ny, to lead the vision for the project, the may launch in the future is a bolstered potentially expose too much user data, chat, according to people familiar with in the App Store, Facebook owns three, 1 minute, the people said. At least one people said. Weil, who co-developed version of the “proactive assistance” the person said. Apple’s strategy. An Apple spokes- while Snapchat owns two. of the prototype designs for the app a video blogging app called KnowMe, functionality. The current implementa- Apple could theoretically choose to woman declined to comment. The company’s upcoming update of would shoot video in an Instagram-like joined Apple in December 2015, ac- tion, bundled into iPhone software since hold back the new social functional- The growth of Apple’s hardware its mobile operating system, which will square shape, one of the people said. cording to his LinkedIn profi le. 2015, recommends points of interest, ity yet again next year, according to the business is slowing and chief executive run on recent iPhone and iPad models, The goal behind the project’s devel- The video sharing app is still in the contacts, and apps based on location people. Regardless, the development offi cer Tim Cook is looking to the com- will include an overhauled messaging opment is to off er simple video editing preliminary development stages within and time of day. work suggests the growing importance pany’s services business, such as the application aimed squarely at Face- with tools that appeal to the generation Apple, and managers are weighing the The proposed enhancements are of social networking to the company. App Store and iCloud storage, as a way book’s Messenger and Tencent Hold- of users growing up with Snapchat and app’s list of intended features. Apple is designed to more eff ectively connect The renewed push that relies heavily to generate increased revenue. Apple ings’s WeChat. The updated iMessage, Instagram, said the people, who asked striving for a 2017 release, the people users with their contacts, one of the on video also allows Apple to leverage has failed to successfully launch social- which Apple announced in June, will not to be identifi ed because the plans said, adding that the project could be people said. Apple’s goal is to make its latest camera technology, such as a media services in the past, including an include new animated eff ects like bal- are private. Snapchat told investors killed if it doesn’t meet the company’s sharing and connectivity with con- dual-lens system with more advanced iTunes-focused social network called loons and fi reworks to illustrate text in April that more than one-third of timetable and expectations. Apple tacts a system-wide feature, the people zoom in the next iPhone. Friday, August 26, 2016 GULF TIMES BUSINESS VW reaches accord with dealers to cover diesel-cheat losses

Bloomberg proval to the carmaker’s settlement Auto dealers and resellers sued VW VW’s proposed remedies for the cars, San Francisco covering 480,000 Volkswagens with in class actions alleging fraud and false it could be years before any of the vehi- 2.0-litre engines, is pressing for a solu- advertising. Volkswagen was also sued cles are taken off US roads, a possibility tion for vehicles with 3.0-litre engines. by a few franchise dealerships this year that may increase fi nes and penalties olkswagen reached a tentative Those models include the Volkswagen who accused the carmaker of fraud against VW. The company has ear- settlement with auto dealer- Touareg, Porsche Cayenne and Audi for installing the pollution-control marked €18bn ($20.3bn) to cover the Vships for their losses from the Q5. cheating devices in diesel vehicles costs of the scandal. diesel-cheating scheme aff ecting more Breyer told the company to submit a and sticking them with continuing As Volkswagen attempts to put its than a half a million cars in the US. plan for fi xing the 3-litre engines and losses by failing to fi x the problem for scandal in the trunk, Robert Bosch, The dollar value of the agreement proof that it works to US regulators by months. VW’s main supplier of software that covering 652 dealerships wasn’t dis- October 24 and report back to him on Dealers are angry because they in- manages diesel engines, is fi ghting at closed during a hearing in San Fran- November 3. vested heavily in new, large stores in least some of the claims that it shares cisco federal court over eff orts to fix Almost a year after the cheating was hopes of seeing the brand sell 800,000 blame for the devices used to cheat the diesel-powered vehicles rigged to made public, VW still doesn’t have an vehicles a year, the goal set by former emissions tests. After plaintiff s fi led an cheat emissions tests or get them off US approved fi x for any of the 562,000 cars Volkswagen chief executive offi cer amended complaint on August 18 ac- roads. In a statement, lawyers for the still polluting US roads. The $14.7bn Martin Winterkorn. Volkswagen’s cusing Bosch of playing a key role in the dealerships said VW had agreed to buy agreement with car owners and the namesake brand sold 349,440 cars and development of the technology, Bosh back unfi xable used vehicles under the government calls for buying back or light trucks in the US last year. denied claims that its employees were same terms as a buy-back plan for con- fi xing 2.0-litre models. Volkswagen is VW brand’s sales fell almost 14% this part of the conspiracy. sumers and independent dealers. also on the hook for $603mn that the year through July while industry wide Bosch will defend itself against the Volkswagen said in a statement that company agreed to pay 44 states, and deliveries rose 1.3%, according to re- “wild and unfounded” allegations, the it agreed to make cash payments and it faces more state government claims searcher Autodata Corp VW’s share of German component manufacturer said provide additional benefi ts to the deal- and investor class actions in the US, the market dropped to 1.7% from 2.1% a in a fi ling in the litigation consolidated A US flag flutters above a Volkswagen dealership in Carlsbad, California. In a ers to resolve their claims. lawsuits in Germany and South Korea year earlier, Autodata said. before Breyer. Bosch, a defendant in statement yesterday, lawyers for dealerships in the US said VW had agreed to US District Judge Charles Breyer, and possible criminal penalties in all Since the US Environmental Protec- some of those lawsuits, isn’t part of buy back unfixable used vehicles under the same terms as a buy-back plan for who last month gave preliminary ap- three countries. tion Agency has yet to approve any of VW’s US settlement. consumers and independent dealers.

Facebook moves to Upbeat US factory data shows monetise WhatsApp through business spending stabilising business Core capital goods orders increase messaging 1.6% in July; core capital goods shipments fall 0.4%; weekly jobless Bloomberg claims decline by 1,000 San Francisco

Reuters Washington Facebook is laying the ground- work for the free messaging service WhatsApp to begin ew orders for US manufac- making money, allowing busi- tured capital goods rose for a nesses to message its more Nsecond straight month in July than one billion users. as demand for machinery and a range It’s the first step towards of other products picked up, off ering a monetising the platform since tentative sign that a business spending Facebook chief executive of- downturn was starting to ease. ficer Mark Zuckerberg agreed The economic outlook also was to pay $19bn for the popular boosted by another report yester- app in 2014. day showing an unexpected drop in WhatsApp announced a the number of Americans filing for change to its privacy policy unemployment benefits last week, yesterday that allows busi- indicating sustained labour market nesses to communicate with strength. users. Together, the data support the view The messages could include that the Federal Reserve will raise in- appointment reminders, terest rates in December. delivery and shipping notifica- Fed Chair Janet Yellen could give tions or marketing material, guidance on the near-term outlook for the company said in its revised US terms of service. In a blog monetary policy when she speaks on post, WhatsApp said it will be Friday at a global central bankers’ con- testing these business features ference in Jackson Hole, Wyoming. over the coming months. “This kind of data are consistent The strategy is an important with what the Fed is looking for in step for Facebook as it at- terms of the labour market and eco- tempts to make money from nomic growth. its most expensive acquisition. If we get more data like this, that will In addition to the messages suggest we are likely to see an interest from businesses, WhatsApp rate increase, most likely in December,” said it would begin sharing said Gus Faucher, senior economist at more information about its PNC Financial Services Group. users with the “Facebook The Commerce Department said family.” non-defence capital goods orders ex- The data, including a person’s cluding aircraft, a closely watched phone number, could be used proxy for business spending plans, in- A worker prepares an order of aluminium materials for shipping at the Eastern Metal Supply facility in Lake Worth, Florida. The US Commerce Department said to better targets ads when creased 1.6% last month, the largest non-defence capital goods orders excluding aircraft increased 1.6% last month, the largest gain since January. browsing Facebook or Insta- gain since January. gram, WhatsApp said. These so-called core capital goods time in nearly a decade, but has held after Britain’s decision to leave the With demand for core capital goods benefi ts slipped 1,000 to a seasonally Facebook’s other texting plat- orders advanced 0.5% in June. them steady so far in 2016 amid con- European Union and ahead of the No- orders rising briskly last month, over- adjusted 261,000 for the week ended form, called Messenger, also The rise in July marked the fi rst cerns over persistently low infl ation. vember 8 US all orders for durable goods — items August 20. has been attempting to court back-to-back gain since January 2015. Most economists expect another rate presidential election, economists ranging from toasters to aircraft that It was the third straight weekly de- businesses as a way to gener- Economists polled by Reuters had hike in December. say. are meant to last three years or more — cline in claims. ate revenue. Several services in forecast core capital goods orders ris- After contracting since the fourth “The solid gains in the last two surged 4.4% in July. Economists had forecast fi rst-time Asia, most notably WeChat in ing only 0.3% last month. quarter of 2015, business investment months set the stage for capital spend- Durable goods inventories rose last applications for jobless benefi ts rising China, have successfully taken There were hefty increases in orders has caught the attention of Fed offi - ing to become a net contributor to month after six straight months of de- to 265,000 in the latest week. this approach. for machinery, primary metals, fabri- cials, with some viewing it as posing a growth again in the second half of the cline. Claims have now been below In its blog post, WhatsApp cated metal products, computers and downside risk to economic growth. year,” said Anthony Karydakis, chief Shipments of core capital goods, 300,000, a threshold associated with also reiterated its commit- electronic products, as well as electri- Investment has declined in part economic strategist at Miller Tabak in which are used to calculate equipment a strong labour market, for 77 straight ment to encryption, saying cal equipment, appliances and compo- as companies slashed capital spend- New York. spending in the government’s gross weeks. no outside parties are able to nents. ing budgets in response to lower oil “The potential softening in the euro- domestic product measurement, fell That is the longest such stretch since see what its users are saying US fi nancial markets were little prices. zone economy following the Brexit vote 0.4% last month after decreasing 0.5% 1973, when the labour market was to each other. moved by the data as investors were That in turn put pressure on manu- may, at the margin, limit the extent of in June. much smaller. The policy has put the com- focusing on Yellen’s upcoming speech. facturing, which has also been under- the comeback of capital spending in But labour market strength should “The ongoing decline in initial pany at odds with government The dollar was trading margin- cut by a strong dollar, weak global de- the US.” support consumer spending and cush- claims indicates substantial underly- authorities in the US and ally lower against a basket of curren- mand and a US inventory correction. Heavy machinery maker Caterpillar ion the blow on the economy from ing strength in labour markets,” said Europe who want an ability to cies, while US stocks were largely un- July’s increase in core capital goods last month lowered its 2016 forecast, weak business investment. Rob Martin, an economist at Barclays intercept the communication changed. orders followed a rise in oil and gas citing sluggish demand in mining and The Atlanta Fed currently forecasts in New York. of potential terrorists. Prices for US government bonds fell drilling activity in recent months. other industries. the economy will grow at 3.4% annu- “Workers are not losing their jobs in “Our belief in the value of slightly. Still, business investment is likely Weak business spending contributed alised rate in the third quarter. large numbers and those workers who private communications is un- The US central bank raised interest to be tepid in the third quarter amid to holding down economic growth to In a separate report yesterday, ini- do get laid off are likely ndingfi em- shakeable,” the company said. rates at the end of last year for the fi rst uncertainty over the global economy 1.0% in the fi rst half of 2016. tial claims for state unemployment ployment.” German fi rms get delayed Brexit shock as confi dence plunges

Bloomberg previous weeks: Political uncertainty ery to proceed at a moderate pace. That the Governing Council to tweak its Yesterday, the Munich-based Ifo in- beat estimates by more than 10% in Frankfurt related to Brexit and a range of other outlook may change in early Septem- policy stance.” Economists surveyed by stitute reported that Germany’s bench- the second quarter, when the econo- crises in the region threaten to damp ber, when the ECB publishes new eco- Bloomberg in the run-up to the previ- mark business climate index plunged my expanded more than analysts pre- so-far solid growth in Europe’s larg- nomic projections. ous ECB meeting predicted an increase in August to 106.2 — a six-month low dicted. erman business sentiment un- est economy. Business sentiment in “Heightened uncertainty about in stimulus as early as September, with — from 108.3 in July, with gauges for “It is not the fi rst time that the Ifo re- expectedly declined the most in France, whose recovery ground to a the future of the European Union will options ranging from an expansion of current conditions and expectations acts with a delay of one or two months Gmore than four years in August halt in the second quarter, also slipped hamper domestic demand in the euro quantitative easing to another cut in down. The survey is based on about to global events,” said Carsten Brzeski, in a sign that companies are waking up this month. area,” David Powell and Dan Hanson, the deposit rate. 7,000 responses from fi rms in manu- chief economist at ING-Diba in Frank- to the consequences Britain’s decision Policy makers have sent signals of economists at Bloomberg Intelligence Since then, economic data had facturing, construction, wholesaling furt. to quit the European Union will have on confi dence in the aftermath of Britain’s in London wrote in a note. painted a picture of relatively resilient and retailing. The survey “is a good reminder that the economy. vote. Germany’s Bundesbank is pre- “The diminished clarity will prob- growth. A gauge of private-sector ac- Signs of waning confidence tally the relatively benign reaction of euro- The drop in the key Ifo business dicting solid and broad-based growth ably be enough to see the growth out- tivity in the euro area unexpectedly im- with the cautious tone from company zone data to the Brexit vote should not climate index enforces the concern in the coming months, and European look downgraded in September. proved in August, business confi dence executives in recent weeks. be taken as given. company executives from Siemens Central Bank President Mario Draghi Adding to that the potential for increased in July and infl ation contin- Their warnings came even as earn- The negative confi dence impact is to Thyssenkrupp have raised in the said in July that he expects the recov- weaker external demand could prompt ued to inch higher. ings at the nation’s blue-chip firms for real.”