RUSSIA VIEW | Page 3 CREDIT WOES | Page 14 Sanctions seen RBI urged to hitting growth, take steps to not rating: Fitch ease liquidity

Wednesday, September 26, 2018 Moharram 16, 1440 AH

QFC SUPPORT: Page 16 GULF TIMES Qatari start-ups make their presence felt at BUSINESS WEF meeting in China

Foreign trade grows ‘remarkable’ 16% in 2017, says Sheikh Ahmed atar’s foreign trade has shown quired licenses, which only require the remarkable growth, increas- approval of the Free Zones Authority. Qing by 16% in 2017, said HE the Sheikh Ahmed stressed Qatar’s Minister of Economy and Commerce “fi rm commitment” to strengthening Sheikh Ahmed bin Jassim bin Moham- its position as a regional business hub, ed al-Thani. highlighting the country’s success in Qatar’s total exports also increased establishing direct trade lines with a by 18%, contributing to a total trade number of strategic partners around surplus of 49%, he said while chairing the world. a roundtable with businessmen during In this context, the Minister called a working lunch on the sidelines of Qa- upon the American business commu- tar’s participation in the 73rd session nity to benefi t from Qatar’s strategic of the United Nations General Assem- geographical location, advanced infra- bly in New York on Monday. structure and investment and legisla- Sheikh Ahmed said international tive environment. Qatar will continue trade and investment form a key part to honour its agreements and interna- of Qatar’s future growth and diversi- tional conventions. fi cation, adding that the US is one of Qatar’s private sector is also playing Qatar’s most valued and largest global an important role, the Minister said, partners. noting that the country is currently The US and Qatar are bound by sev- working on a public-private partner- eral agreements and memorandums ship law that will contribute to sup- of understanding, especially the TIFA porting this sector and foreign inves- Agreement, which led to the establish- tors in the Qatari economy. ment of a joint council since 2004. Sheikh Ahmed also pointed to Qa- On bilateral trade, Sheikh Ahmed tar’s sustainable economic policies and said $24bn worth of goods were traded its ability to consolidate its position as in the last fi ve years; 84% of the trade a regional business hub”. balance was in favour of the US. HE Sheikh Ahmed addresses a roundtable with businessmen during a working lunch on the sidelines of Qatar’s participation in the 73rd session of the United Nations Qatar welcomes US investors who The US is also Qatar’s top destina- General Assembly in New York on Monday. may benefi t from the promising in- tion for imports with 16% of Qatar’s vestment opportunities off ered by the imports coming from the US in 2017. American citizens live in Qatar, where cording to the Minister, point to the Qatar has “successfully” estab- tion in its fi rst stage. The legislative Qatari economy, which is one of the Financial transactions from Qatar to 5,000 highly skilled individuals are fact that “Qatar has overcome the siege lished direct commercial routes with framework regulating foreign invest- fastest growing regional economies, he the US reached $26.5bn in 2017 alone, currently working in the private sector, by enhancing its economic competi- a number of strategic hubs around ments in Qatar off er foreign investors said. including business profi t, salaries, and he said. tiveness and cementing its position as the world, diverting trade to its major the opportunity to own up to 100% of Sheikh Ahmed also participated in payments. Qatar, Sheikh Ahmed said, “achieved an attractive destination” for US in- trading partners. investment projects in various sectors, the reception hosted by South African Qatari investments in the US have positive growth rates” last year, noting vestments. The country has sought to take ad- the Minister said, noting that the Free President Matamela Cyril Ramaphosa also exceeded $45bn, the equivalent to that Qatar’s real GDP grew by 1.6% at Qatar’s economy depends mainly on vantage of the “excellent” business Zones Law allows 100% ownership to celebrate the centennial of late pres- 23% of Qatar’s GDP, he said. constant prices. the oil and gas sector, despite the fact environment and investment oppor- across many activities and sectors. ident Nelson Mandela. Qatar Airways alone provided Numerous international reports that the government’s economic poli- tunities available in Qatar to create a Qatar also off ers investors “numer- The roundtable, which was organ- a $92bn boost to the US economy have indicated the strong perform- cies have contributed to an increase in sophisticated air fl eet operated by Qa- ous” incentives including the free- ised by the Embassy of Qatar, US-Qatar through the purchase of some 332 ance of the Qatari economy. Quoting the contribution of non-oil sectors to tar Airways. dom to transfer capital and choose Business Council and the US Cham- American aircraft, a deal that supports the latest report released by the World about 51.8% of GDP last year. Qatar has sought to mobilise its the legal entity of a project in addition ber of Commerce, brought together more than 527,000 direct and indirect Bank, the Minister said Qatar’s real The Minister touched upon meas- signed regional agreements with Ku- to exempting assets and production Khush Choksy, senior vice president, jobs in the US. GDP growth was expected to rise to ures that Qatar has taken to overcome wait, Iraq, Oman, Turkey, Pakistan, requirements as well as exports and American Chamber of Commerce for More than 650 American companies 2.8% in 2018. the “unjustifi ed siege” imposed on the India, Azerbaijan and Central Asia to imports from taxes and duties, which Middle East aff airs; Mohamed Barakat, are established in Qatar, including 117 Qatar’s infl ation rates have also country, which was aimed at under- expand its trade activities by establish- would streamline the fl ow of goods and US-Qatar Business Council managing companies 100% owned by US citi- dropped to about 0.5% in 2017 com- mining its position, but he said Qatar ing a sea fl eet that connects Qatar with services to and from Qatar. director and Sheikh Meshal bin Hamad zens, the Minister noted. pared to 2.7% in 2016. “emerged stronger and more inde- its major trading partners in the world, Qatar has established a single win- al-Thani, Qatar’s ambassador to the US. In addition, more than 15,000 All these “positive” indicators, ac- pendent” than ever before. targeting a market of 400mn popula- dow, where investors can obtain all re- Page 16

India’s exports to Qatar jump 87% in 2018 Qatar-Germany ties ‘set to reach new heights’

By Peter Alagos By Peter Alagos Business Reporter Business Reporter

India has recorded an 87% jump in Economic ties between Qatar and Germa- exports to Qatar in one year from April ny “are set to reach new heights” over the 2017 to March 2018, reaching nearly next five years following His Highness the $1.5bn according to the country’s envoy. Amir Sheikh Tamim bin Hamad al-Thani’s In the previous year, Indian exports to announcement of additional investments Qatar had totalled close to $800mn, P into the German economy, according to Kumaran told Gulf Times yesterday on ambassador Hans-Udo Muzel. the sidelines of a business meeting be- Muzel made the statement in his wel- tween Qatari companies and an Indian come note during the annual general as- trade delegation at the Qatar Chamber. sembly of the German Business Council The Indian trade delegation was led by Al-Kuwari hands over a token to K-flex India CEO Kalra after a business Qatar (GBCQ), which appointed new K-flex India Company CEO Triviyan K meeting in Doha yesterday. Joining them are al-Athba, Kumaran, and other board members and other off icials. Kalra. dignitaries. At the ninth instalment of the ‘Qatar-Ger- The delegation met with Qatar Chamber many Business and Investment Forum’ From left: Adrian Wood, Kathrin Lemke, Peter Neuschaefer, ambassador first vice chairman Mohamed bin Towar al- Given our growth rate of 7% to 8% – the roadshows by Qatar. We had a discus- held earlier this month in Berlin, Ger- Hans-Udo Muzel, Henning Zimmermann, Bahman Datsvareh, Oliver Moritz, Kuwari and second vice chairman Rashid fastest growing major economy in the sion with Mr Ahmad bin Mohamed many, His Highness the Amir said Qatar is Elias Chedid, Oliver Alexander, and Charbel Maakaron. bin Hamad al-Athba, as well as other cham- world – I think the opportunity for good al-Sayed, the chairman of Qatar’s Free planning to pour €10bn into Germany. ber off icials and member companies. returns above other most economies is Zones Authority, and we understand This fresh round of planned investments, auditor, and arbitration committee. companies were honoured for their “Our analysis showed that the main in- high,” he pointed out. that once the bylaws are firmed up, he which include “vital projects” in the The new board is composed of chairman continuous support to the council: Qatar crease was in the area of food and food The ambassador said Qatari invest- would be very much interested in talk- automobile industry and the information Henning Zimmermann (DB Schenker); International Automobiles for their sup- products, iron and steel, aluminium, ments could be used to develop sectors ing to Indian companies.” technology and banking sectors, would Elias Chedid (Seib Insurance and Reinsur- port as “premium partner” and Al Mana and transport machines and cars from such as oil and gas, power, infrastruc- According to al-Kuwari, there are 24 add to Qatar’s investment portfolio in ance); Adrian Wood (Siemens); Peter Group as “most loyal member” since the Suzuki and Tata Motors,” the ambas- ture, food and food processing, agro- fully-owned Indian companies in Qatar Germany, which now stands at more than Neuschaefer (Dorsch), and Bahman council’s establishment in 2002. sador said. port development, airport development, and an estimated 6,000 Qatar-India €25bn. Datsvareh (Endress + Hauser Qatar). The meeting was moderated by Kathrin In the next 12 years, Kumaran said India and MRO (maintenance, repair, and joint ventures operating in the country’s Speaking to Gulf Times earlier, Muzel The German ambassador is an honorary Lemke, representative of the German In- needs around $2tn in investments for operations). infrastructure, ICT, and energy sectors, underscored the need to set up “several board member of the council. dustry and Commerce Off ice (AHK). AHK various infrastructure development “We are going to develop new airports among other fields. institutions and mechanisms that could Other “private members” include represents the Association of German projects, adding that Qatar is welcome in the next few years; the number of He said Qatar-India trade stood at more assist Qatar with its new investments in Oliver Moritz (treasurer) and David Salt Chambers of Industry and Commerce to participate in various projects in dif- planes being ordered per year by Indian than $10bn last year, adding that India is Germany.” (auditor). The arbitration committee is (DIHK) and is part of the global network ferent sectors. airline companies is probably the high- the “third largest” export destination of In his speech, Muzel emphasised the composed of Charbel Maakaron (Squire of German Chambers of Commerce “We welcome investments from est in the world…so there are so many Qatari products. “strong” bilateral, political, and economic Patton Boggs); Oliver Alexander (Alex- Abroad (AHK). On behalf of the Federal everyone. Being a big investor and an diff erent sectors of the economy that Kalra underscored trade opportuni- relations between the two countries, and ander & Partner Rechtsanwälte), and Republic of Germany, AHK represents active investor abroad, we also welcome off er opportunities,” he continued. ties in India that could attract Qatari congratulated the GBCQ’s new board private member Geoff rey Compton. German business interests in Qatar and Qatari investments in the Indian sector. He added: “We look forward to some investors. members, including a new treasurer, During the dinner reception, two local manages the GBCQ. Wednesday, Septembr 26, 2018 2 ISLAMIC FINANCE GULF TIMES

EDUCATION/FAQ on Loan

What are the rules pertaining to in the offer and acceptance of a wear sustained during the property’s of a service; unless the borrower does conditions that compel the borrower borrower to repay the loan amount gift giving? gift, the presence of both parties intended use. The borrower is so voluntarily and the lender accepts to do something or refrain from with some extra value above the Gifts, or hiba, must have an offer, together is not a prerequisite. In the responsible for paying for any damages once the loan is made. something outside of the agreement principal? an acceptance, and possession. event that after an offer and before caused by himself, a third party, or to repay the loan; the lender may, It is permissible for the borrower to The offer should be made in such a an acceptance has taken place either acts of God during the property’s use, Is it permissible to make an however, inquire about repayment and repay an amount greater than the size way that the intention of the person party passes away, the offer and whether the damage occurs during interest-free loan to a client on insist on timeliness. of the loan as a gesture of goodwill giving the gift should be clearly acceptance is automatically annulled. usage intended by the lender or not. condition that he deal exclusively (without letting such a gesture understood by the one receiving A contract of gift may not be made with the bank when buying and What guidelines are there become customary practice), but it. This may take place without the for the future. When lending money, may the selling foreign currency or at least for the borrower regarding impermissible for the borrower to exchange of a verbal offer and lender specify how the borrower is use it as an intermediary? the consumption of money, promise to pay a greater amount at the acceptance .The intention of the What is the exact time before which permitted to use the money? It is not lawful for the bank to make replaceable items, and time of borrowing or for the lender to gift giver and the acceptance of the the giver may reclaim his gift? The lender is not permitted to specify a loan and attach any condition that irreplaceable items? demand a greater amount. receiver may be expressed merely by The giver may reclaim a gift before how the money may be used or impose provides the bank with direct or The borrower may consume the their manner, such as a nod. Once a the recipient takes constructive restrictions on how it may not be used. indirect benefit. money or replaceable goods in any Is the borrower entitled to any gift is sent to a person and he takes possession of it, but not after, however manner he chooses provided this early payment discounts? possession of it, it is equivalent to an insignificant the gift. Is it permissible for the lender to What is the ruling on attaching consumption does not hinder his It is impermissible for the borrower and exchange of an offer and acceptance derive any monetary benefit from conditions to the loan contract? ability to make a timely repayment or lender to agree a discount on the loan if between both parties. In a sale and Who is responsible to pay for the disbursement of a loan? The loan should be free of binding to return irreplaceable goods in the the borrower repays before the due date. purchase transaction, the offer and damage to lent property? The loan should not derive any benefit conditionality (not including the condition he borrowed them. acceptance must take place while The lender is responsible for paying to the lender, whether monetarily, in- conditions of collateral or guarantor, Source: Ethica Institute of Islamic both parties are present, however, for any damages caused by normal kind, gifted, as a favour, or in the form which are permissible); forbidden are Would it be permissible for the Finance via Bloomberg

Nakheel is said to plan Islamic bond

Bosnia and Herzegovina Bloomberg Dubai

Nakheel is considering its first public bond sale since the developer of Dubai’s palm-shaped islands teetered on the brink of default almost a turns Islamic fi nance hub decade ago, people with knowledge of the plan said. The Dubai government-owned company is aiming to sell the sukuk next quarter, said the people, asking not to be identified because the information is private. A Nakheel spokeswoman declined to comment. of the Balkans region Nakheel, which along with Emaar Properties led a building boom in Dubai, will return to the By Arno Maierbrugger public bond markets for the first time after Gulf Times Correspondent nearly defaulting on a $3.52bn Islamic bond in Bangkok December 2009. The company, along with then- parent Dubai World, was given a $10bn lifeline by Abu Dhabi and has since repaid creditors n upcoming event to be held and completed a recovery with the help of a this Saturday, September 29, rebound in Dubai’s real estate market. Ain Bosnia and Herzegovina’s Nakheel said last month it signed construction capital Sarajevo sheds light on the contracts worth more than 6bn dirhams ($1.6bn) widely underreported growth of in the first half, while reporting a 3.8% decline Islamic fi nance in the Balkans. The in profit. The company has more than 25,000 prestigious 8th Global Islamic Fi- residential units under construction or in the nance Awards will be staged on pipeline as well as about 15 hotels in various this day in this city and will bestow stages of development. honours in more than 50 award cat- Nakheel joins other Dubai-owned companies egories for outstanding individuals, in selling bonds, or planning to. Emaar, the including “Islamic Banker of the developer of the world’s tallest skyscraper in the Year” and “Islamic Finance Person- city, aims to sell perpetual Islamic bonds, people ality of the Year,” and for institu- with knowledge of the plan said. Dubai-owned tions in international Islamic bank- ports operator DP World Ltd last week raised ing and fi nance. over $3bn from the sale of dollar-, euro-and Among the attendees will be a pound-denominated securities. large number of banking and fi - Overall sales of bonds from the six-nation Gulf nance institutions from the Middle Cooperation Council have climbed 18% this East, particularly from Gulf Coop- year to $64.5bn, according to data compiled by eration Council member states. Bloomberg. The event highlights the rapid While Nakheel hasn’t been to the public bond development Islamic fi nance has markets since the financial crisis, it did issue experienced in Bosnia and Herze- more than 4bn dirhams of sukuk to settle govina over the past two decades. 60% of its bills to trade creditors as part of a After time for recovery from plan to return to health. In all, the company the disastrous Bosnian War in the restructured 27bn dirhams of bank and trade 1990s – which was part of the creditor liabilities to aid its turnaround since breakup of Yugoslavia and led to a Dubai’s property crash. severe repression of Muslims in the People feed pigeons next to an Ottoman-style fountain in Bascarsija Square, in Sarajevo, Bosnia. A favourable regulatory framework and political support, region – the country at the turn of particularly advocated by Bakir Izetbegovic, current chairman of the presidency of Bosnia and Herzegovina, have accelerated the development of the the millennium began re-estab- Islamic finance sector in the country. lishing itself as a Muslim-majority IILM appoints new acting CEO state, one of the very few in Europe, and for the nation’s lively sector of BBI in 2016 together with the of Bolton and BBI, set up a Center tee of the Global Islamic Finance and today has a share of about 51% small-and-medium-sized enter- stock exchange in Sarajevo initiated for Islamic Economics, Banking and Awards, Bosnia and Herzegovina The International Islamic Liquidity Management of its 3.5mn-population that fol- prises and entrepreneurs. the fi rst Shariah-compliant stock Finance, which is off ering Islamic has reached “a level-playing fi eld in Corp (IILM) has appointed Umar Oseni as its acting lows the Islamic faith. index and is continuously seeking banking master classes, well-at- enabling the Islamic fi nance indus- chief executive after the resignation of Abdoul Aziz Simultaneously, Islamic fi nance or extending cooperation with Is- tended by students from the region, try to further grow as a competitive Ba, the Malaysia-based organisation has said. came into gear in the central Bal- lamic fi nance institutions in coun- namely from the other two Muslim- national fi nancial sector” and has The IILM did not give a reason for the departure kans nation. Bosnia and Herze- Gulf Times tries such as Turkey, Malaysia or majority nations Kosovo and Albania. seen “the prominent rise of Sara- of Ba, who joined in 2011, saying only that Oseni govina’s fi rst and so far only fully- from the Middle East. In addition to that, BBI is spon- jevo as a hub for ethical fi nance in would lead the organisation until the appointment fl edged Islamic bank, Bosna Bank Exclusive By 2017, Islamic fi nance assets in soring a considerable number of the South-eastern Europe region.” of a permanent CEO. International (BBI), was launched the country grew to around 18% of events and public education pro- Amer Bukvic, BBI’s CEO, indi- Oseni previously served as executive director of in the year 2000 with support from total banking assets. grammes for Islamic fi nance, in- cates that the development will legal and compliance and general counsel of the the Islamic Development Bank. The A favourable regulatory frame- In another important develop- cluding the above mentioned award continue. “The infl uence of Islamic IILM since 2016. bank’s portfolio today comprises work and political support, par- ment, Bosnia and Herzegovina has and various business clubs and fo- fi nance is increasing steadily in Bos- The IILM is a consortium of central banks and retail and corporate banking serv- ticularly advocated by Bakir Izet- set a focus on education and train- rums on the Shariah-compliant fi - nia and Herzegovina and now plays monetary agencies from Indonesia, Kuwait, Luxem- ices, as well as banking solutions for begovic, current chairman of the ing in Islamic fi nance. The Univer- nance sector and the growing halal a signifi cant role in the promotion bourg, Mauritius, Qatar, Malaysia, Nigeria, Turkey the large Bosnian-Muslim diaspora presidency of Bosnia and Herze- sity of Sarajevo, in partnership with industry in the country. of foreign direct investment, with and the UAE, as well as the private sector arm of many members of which were dis- govina, accelerated the develop- the School of Economics and Busi- According to Sofi za Azmi, chair- Sarajevo serving as a centre for the the Islamic Development Bank. placed during the Bosnian War, ment of the Islamic fi nance sector. ness Sarajevo, UK-based University person of the awards commit- industry in the region,” he noted. Islamic banks seen facing outdated property rules

By Bernardo Vizcaino Islamic commercial banks are estimated Reuters to hold more than $1.3tn in assets globally, a sector considered systemically important in countries including Saudi Arabia, Qatar egulators overseeing Islamic bank- and Malaysia. ing must revise guidance on real Around half of large Islamic banks and Restate exposures to align with the two-thirds of small Islamic banks have a post-fi nancial crisis capital rules of Basel high to very high exposure to real estate III, a global industry body has said. and mortgages, according to a CIBAFI in- The Bahrain-based General Council for dustry survey. Islamic Banks and Financial Institutions Islamic banks in Bahrain, Jordan and (CIBAFI) said treatment of real estate across Kuwait recorded roughly a 25% exposure to Islamic fi nance jurisdictions still refl ected real estate in their activities, CIBAFI data Basel II or pre-reform Basel III rules. showed. But a revised version of Basel III, fi - CIBAFI said national regulators must nalised in December 2017, introduced incorporate the Basel III revisions, while additional requirements including con- the Malaysia-based Islamic Financial centration limits and independent asset Services Board (IFSB) should also revise its valuations. own capital adequacy standard for Islamic Such requirements are important for Is- banks. lamic banks as many have high exposure That standard, known as IFSB-15, had to real estate in both their investment and initially proposed concentration limits on fi nancing activities, coupled with the il- real estate but these were not adopted in a liquid and cyclical nature of the asset class, fi nal version, CIBAFI said. CIBAFI said. This would have placed a cap on aggre- “As a result, Islamic banks may be hit gate real estate investment exposures of particularly hard by any downturn in the 60% of regulatory capital, with a 15% limit Buildings stand illuminated at dusk in Kuala Lumpur (file). Regulators overseeing Islamic banking must revise guidance on real estate exposures to align with real estate sector.” on single real estate investments. the post-financial crisis capital rules of Basel III, according to the General Council for Islamic Banks and Financial Institutions (CIBAFI). Gulf Times Wednesday, September 26, 2018 3 BUSINESS

Bond traders see 2019 as battleground for bets on Fed rate path

Bloomberg course of interest rates could prove to pausing in 2019 after two more hikes mists predicting the Fed will tighten Wealth Management’s investment Fed forecasts policy becoming restric- New York be a slow meeting in the middle of the this year. even faster than policy makers indi- committee, predicts economic growth tive by the end of 2019, with the funds two camps. But it may also deliver a The market has been reluctant cate. Goldman Sachs, JPMorgan Chase will level off , so the Fed “actually does rate at 3.1%. painful blow to bond bulls or even the to price in the Fed’s projected path & Co and Royal Bank of Canada all very little next year.” Jerome Schneider So one way or another the gap in or the world’s biggest bond mar- Fed’s credibility. since this tightening cycle began in forecast four increases in 2019. at Pacifi c Investment Management Co views will have to be bridged. Fed ket, 2019 is turning into a battle- Either way, the standoff sets the 2015, especially after the central bank Investors, for their part, may be sees two hikes in 2019, as does Anne chairman Jerome Powell will have Fground for bets on the path of US stage for heightened turbulence in debt fell short on delivering the multiple signalling dimming confi dence in the Mathias, a strategist at Vanguard. more opportunities to do that and head monetary policy. markets after one of the most subdued hikes it projected for 2016, eventually durability of the economic expansion Part of the reason Camp expects the off potential market volatility starting Investors in recent weeks have stretches in decades. moving only once. in the face of rising rates and trade ten- Fed to stand down next year is to avoid in January, when he’ll begin holding moved closer to the Federal Reserve’s “The bond market doesn’t believe in The dynamic started to change sions. The gap between 2-year and 10- inverting the curve. press conferences after every meeting, projected path of three rate hikes next the infl ation story,” said James Camp, ahead of the March 2017 tightening, year yields last month shrank to as lit- New York Fed President John Schneider said. year – they’re now pricing in two, fol- director of fi xed-income at Eagle Asset when traders had to scramble to price tle as 18 basis points, and though it has Williams has pushed back on that “The question is, is there a moment lowing expected increases next week Management, which oversees about in a hike in response to Fed signals. widened back to around 25 basis points sentiment. of reckoning coming?” said Robin and in December. $34bn. “This sets up for a very inter- Derivative traders see the funds rate amid in an uptick this week in 10-year “We need to make the right deci- Brooks, chief economist at the Insti- But some, including at Eagle Asset esting 2019.” only reaching about 2.8% by the end of yields, the curve remains close to its sion based on our analysis of where tute of International Finance. “Will Jay Management and Vanguard Group, Traders ramped up bets on 2019 Fed 2020, whereas in June, the median of fl attest level since 2007. the economy is and where it’s heading Powell have to at some point stand up still doubt that infl ation will be enough hikes after labour-market data re- Fed offi cials’ forecast was for 3.4%. Back then was the last time the mar- in terms of our dual-mandate goals,” in front of markets and say, ‘Hey guys, of a threat to warrant as much tighten- leased on September 7 showed wages “There’s a view that the Fed has ket saw a curve inversion, a phenom- he said this month. “If that were to re- you have this wrong, you need to price ing as policy makers anticipate. jumped in August by the most since largely converged to the market,” said enon that has been a reliable predictor quire us to move interest rates up to the more out the curve.’ This divide may persist at least un- the end of the recession. But Camp, for Jan Hatzius, chief economist at Gold- of recession. point where the yield curve was fl at or “But to communicate that is quite til November, when the results of US one, still isn’t convinced infl ation will man Sachs Group. “From 2012 to 2016, “The market is starting to price in inverted, that would not be something tricky because a hawkish surprise risks midterm elections make it easier to accelerate, a view that gained traction that was true. The period before that it a Fed pause”, around mid-2019, said I would fi nd worrisome on its own.” upsetting stock markets,” Brooks said. gauge the potential economic tailwind after unexpectedly tame consumer- wasn’t true, and the period since then Gene Tannuzzo, a fund manager at Co- What it comes down to is that the “And that risks upsetting some of his from fi scal policy. price fi gures last week. He’s holding it hasn’t been true.” lumbia Threadneedle Investments. Fed and markets diff er on when rate main constituents, including in the The resolution of the debate over the 10-year Treasuries and sees the Fed Hatzius is among Wall Street econo- Bob Parker, a member of Quilvest hikes will start crimping growth. The White House.”

Louis Dreyfus hit by Sanctions seen aff ecting surprise resignation of top executives

Bloomberg transport shipments of grains, Russia’s economic oilseeds and cotton around the London world – were also caught off guard by the shakeup, they said. ouis Dreyfus Co, the McIntosh is the fi fth person 167-year-old commodities to take the top job on a perma- Ltrading house that’s strug- nent or interim basis since 2013. growth, not rating: Fitch gled with falling profi ts and a Additionally, a sixth appointee troubled sugar unit, was thrown Mayo Schmidt was named as Reuters into turmoil after its two top ex- CEO at the end of 2014, before Moscow ecutives unexpectedly resigned. a surprise announcement on Chief executive offi cer Gonza- New Years’ Eve that he would no lo Ramirez Martiarena quit after longer be taking up the position. S sanctions will weigh on Russia’s three years in the job “to pursue The changes follow a period economic growth but are unlikely other opportunities,” the fi rm of diffi cult trading conditions Uto imminently deprive Moscow of controlled by billionaire Mar- for the fi rm and other agricul- its investment-grade rating, the head of garita Louis-Dreyfus said in a tural commodities traders amid Fitch Ratings Sovereigns group said yes- statement. He’ll be replaced by bumper crops and a lack of price terday. three-decade company veteran volatility. LDC has seen a raft of Concerns about more US sanctions Ian McIntosh. Chief fi nancial of- other executive changes over the against Russia have intensifi ed in the fi cer Armand Lumens resigned past fi ve years, including the de- past few months, even though risks of for “personal reasons,” and will parture of the bulk of its grain- sanctions that could target new Russian be replaced by Federico Cerisoli. trading team last year. government debt have been in place for The sudden departures un- Under Ramirez, an Argentin- around a year. derscore the revolving door ian who worked at LDC for 13 A year ago, Fitch said Russia’s sover- that’s characterised the com- years, the company sold assets, eign rating would be one notch higher pany, which has seen fi ve CEOs including its metals-trading than its current BBB- level were it not for since 2013 and struggled with business and trimmed staff to the latest round of US sanctions. depressed crop markets. The cut costs. LDC bailed out its One year on, that is still the case. changes also come as Russian- Brazilian sugar processing sub- “We think that sanctions are going born heiress Louis-Dreyfus sidiary Biosev SA with a $1.05bn to remain a risk and are going to weigh needs to fi nd about $1bn to buy capital injection in March. on Russia’ credit profi le,” Erich Arispe, out other family members. The bailout ramped up pres- sovereigns’ and supranationals group “I do not recall that in any sure on Chairwoman Louis- director at Fitch, said in an interview in trading house we have ever seen Dreyfus, who faces a $1bn cash Moscow. both the CEO and CFO leaving at call to buy shares in Louis Drey- “Growth is likely to be the main victim the same time,” said Jean-Fran- fus Holding BV from other fam- of sanctions,” Arispe said. cois Lambert, a former trade fi - ily members under a deal struck “In spite of the improvements we’ve nance banker at HSBC Holdings years ago. She has also pledged seen and eff orts they (authorities) are Plc and an industry consultant. some of her family’s shares in making right now to improve the busi- “This is a harbinger for further the commodities trading house ness operating climate, this sanctions announcements, probably not of to back $475mn of loans with uncertainty creates a challenge for peo- the positive kind.” Credit Suisse Group AG. ple to come and say OK, let’s invest in Natalia Reiter, an LDC spokes- LDC suspended dividends in Russia.” woman in Geneva, said the depar- 2017 for the fi rst time in 13 years After the recession of 2015-2016, Rus- tures of Ramirez and Lumens were as it has struggled to grow profi ts. sia’s economy remains in recovery mode. The skyscrapers of the Moscow International Business Center, also known as ‘Moscow City,’ (centre), stand on the skyline beyond “purely coincidental and unre- In yesterday’s statement, Economic growth is still sluggish, even the Kremlin and Moskva River in Moscow. US sanctions will weigh on Russia’s economic growth but are unlikely to imminently lated” to each other. The changes Louis-Dreyfus thanked Ramirez though prices for oil, Russia’s key export, deprive Moscow of its investment-grade rating, the head of Fitch Ratings Sovereigns group said yesterday. aren’t related to LDC’s upcoming for putting the company “in its have bounced back, while the central fi nancial results, which will be re- current solid fi nancial position.” bank has cut rates to pre-crisis levels. The next rating check-up is scheduled When asked if Russia will still retain its when the West applied fi rst sanctions leased early next month, she said. McIntosh, who has been with Fitch expects Russia’s economic for February 2019 when Fitch, which investment grade even if new sanctions against Moscow to punish it for annexing The changes were announced LDC since 1986, brings “experi- growth to slow to 1.5% in 2019 from has kept Russia’s rating and the outlook are applied, Arispe said that was Fitch’s Crimea and fuelling the Ukrainian crisis. as LDC’s top executives gathered ence, expertise and knowledge” 2.0% this year, before picking up to 1.9% unchanged since September 2017, will point of view at the moment. In the past few years, the central bank in Barcelona for a previously to take on the role, she said. in 2020. The rouble is likely to remain decide whether to proceed with a rating “For now our baseline scenario is that has managed to rein in infl ation, while scheduled strategy session, ac- McIntosh was the head of volatile and under pressure near current action or review the outlook. we don’t see an imposition of sanc- letting the rouble fl oat freely. cording to people familiar with $1.4bn hedge fund Edesia Asset levels, fi nishing this year at 68 per dol- Currently, Russia has the same rating tions...cutting the sovereign from mak- Meanwhile, the fi nance ministry has the matter. Some managers were Management BV, which Louis lar and averaging 67 in 2019 and 2020, as Hungary, Romania, India and Oman. ing debt payments,” Arispe said. implemented a fi scal rule that insulates stunned by the news as Ramirez Dreyfus Holding BV shut down Arispe said. Ratings below BBB- considered to be “We also don’t expect sanctions cut- the economy from swings in oil prices had held management meetings last year. The British national Fitch has last affi rmed Russia’s sover- off the investment grade. ting the state-owned banks from the and helps Russia to build up its reserves. this week, the people said. also contributed to the creation eign credit rating at BBB- with a posi- “All options are always on the table, dollar markets.” “This policy framework put in place Bankers at some of LDC’s of LDC’s current structure and tive outlook in mid-August, at the time however, in Russia’s case...the sanctions Justifying Russia’s rating, Arispe between 2014 and now is actually allow- biggest lenders – providing has previously headed sugar, when the rouble was hitting more than impact could weigh on the economy and pointed at structural reforms that the ing Russia to manage crisis or external the billions of dollars in com- coff ee, cocoa, rice, ethanol and two-year lows against the US dollar. on Russia’s outlook,” Arispe said. authorities have implemented since 2014 shocks better,” Arispe said. modity trade fi nance needed to grains, the company said. Nyrstar’s profit warning highlights zinc’s disconnects

By Andy Home Treatment charges, which is what com- The company has indicated a 15-month particularly for mined output, are some- London panies such as Nyrstar receive for process- timeline to full planned production thing of a statistical black hole, one which ing mined concentrate into refined metal, of 264,000 tonnes per year. Vedanta the ILZSG has navigated in the past by are still “historically low”, compounding Resources’ 250,000-tonnes per year using an “apparent” calculation. Belgian zinc producer Nyrstar issued a the financial hit from the low zinc price. Gamsberg mine in Namibia is due to begin But its assessment that Chinese mined profits warning last week, citing “adverse Nyrstar, like other smelters, is being commercial production this month and production has fallen sharply this year market conditions”. The company, which squeezed between a price that’s signalling will take 9-12 months to ramp up to capac- chimes with a broader analyst consensus last year produced over 1mn tonnes of feast and a raw materials chain that is only ity, the company said in its Q2 report. that the zinc mining sector has been im- refined zinc, is feeling the pain from the just emerging from famine. These three mega mines are being pacted by the multiple prongs of Beijing’s dramatic price collapse of the last six The benchmark zinc treatment charge joined by a cluster of smaller new mines. anti-smog campaign. months. this year was set at $147 per tonne, the Nyrstar itself is ramping up its The refined production figures released London Metal Exchange (LME) zinc hit lowest headline level in a decade. 30,000-tonne per year Myra Falls property monthly by the National Bureau of Statis- an 11-year high of $3,595.50 per tonne in Spot treatment charges in China have in Canada with first production this quar- tics come with their own caveats but the February. It is currently trading at $2,525 fallen much lower as smelters compete to ter. There are signs that spot treatment trend is clear. National output has been after touching a two-year low of $2,283 in source material in a tight mined concen- charges are reacting as this new supply falling for three straight months, August’s August. trates market. starts arriving. Nyrstar noted that those in 7.9% year-on-year decline marking a Retreat turned into rout as zinc got That was expected to change this China have “increased notably” over the further acceleration of the trend. caught up in the broader LME sell-off , year as new and reconditioned mines last two quarters. August’s headline production of speculative players using the base metals responded to higher prices. But refilling a depleted global supply 431,000 tonnes was the lowest monthly complex to vent their trade war angst. They are coming, but it’s taking time. Traders work on the trading floor at the London Metal Exchange (file). Zinc is currently chain takes time and the process has only figure since October 2012. The resulting price implosion has The International Lead and Zinc Study trading at $2,525 on the LME after touching a two-year low of $2,283 in August. just started. Even allowing for some statistical haze, opened up a disconnect with zinc’s inter- Group (ILZSG) estimates global zinc mine It is not just Nyrstar that is feeling the the picture seems to be one of reduced nal supply-demand dynamics. production actually fell by 2% in the first riod. Only one of the big three additions to second-quarter production of 39,000 pinch between low treatment charges and raw materials availability and a resulting Right now the zinc price is suggesting seven months of this year. mine supply is actually up and running. tonnes. a falling zinc price. margin squeeze on smelters which has that a wave of new mine supply is crashing An eight-percent slump in estimated MMG’s Dugald River mine in Australia Australia’s New Century Resources, Chinese producers of refined metal are translated into falling output. along the supply chain. It isn’t. Chinese output dragged the global figure entered production late last year and which is rehabilitating MMG’s old Century hurting just as much, witness the collec- The supply response to two years of lower, but production in the rest of the has ramped up successfully towards its mine in Queensland, announced first tive call for production cuts in June. „ Andy Home is a columnist for Reuters. The rising zinc prices is only just starting. world grew by just 1% over the same pe- 170,000-tonnes per year capacity with production only in August. China’s off icial zinc production figures, views expressed are those of the author. Gulf Times 4 Wednesday, September 26, 2018 BUSINESS

US yields, trade woes knock EM equities and currencies

Reuters US 10-year Treasury yields London climbed above 3.1% to a fresh four-month high ahead of an expected interest rate hike Emerging stocks extended from the Federal Reserve falls yesterday and currencies on Wednesday, adding to came under broad pressure nervousness over funding from rising trade tensions and costs for many emerging climbing US yields, although markets. Turkey’s lira rose on hopes With the dollar steady, Ankara could ease tensions emerging currencies came with Washington. under pressure with Asian MSCI’s emerging market currencies painting a cloudy equity index fell 0.5%, with picture. China stocks suffering the China’s yuan hit its weakest brunt of the declines after the level in a month against the US and China imposed tariffs dollar, India’s rupee flirted with on each others goods on record lows hit the previous Monday, heightening concerns week and the Philippine peso that an increasingly bitter plumbed its lowest level since trade dispute could hit global end-2005. economic growth. Meanwhile, South Africa’s BlackRock headquarters in New York. Debt problems at one of India’s key non-banking financial firms has failed to shake the confidence of BlackRock Investment Institute and Heavyweight Hong Kong rand nudged 0.1% lower, while JO Hambro Capital Management in the world’s fastest-growing major economy. suffered a 1.6% fall after Russia’s rouble strengthened potential changes in funding 0.3% against the dollar, options for house builders in gaining support from oil China. prices hitting four year highs. However, losses were broad Turkey’s lira struggled 0.2% based with bourses from higher to trade at just over 6 Russia and South Africa to to the dollar in a second day Turkey all down. of gains. “We have signs of a further On Monday, the lira jumped BlackRock, JO Hambro escalation of the trade war more than 2% after US between China and the US, Secretary of State Mike and we see it as likely that a Pompeo said he expected new round of tariffs will be talks with Turkish officials announced... over the fate of a US pastor very soon on the remaining whose trial has strained unfazed by India’s part of the imports from relations. China, and that will definitely “Turkey is facing two weigh on emerging markets,” fronts — one if the stand-off said Jakob Christensen, head with the US, and the other of EM research at Danske are the weak economic Bank. fundamentals,” said Danske “On top of that, you have US Bank’s Christensen.”If they banking debt woes yields picking up and the can solve the one with the market is anxiously waiting US that will be quite a relief Bloomberg „ “The fundamentals remain strong: about legacy of previous credit, overall fi nance companies due to high valuations” to see if the Fed is going to be and we will see the dollar-lira New York domestic growth is strong, company private sector credit to GDP is basically „ “Some IL&FS bonds are coming more hawkish than they have going below 6 quite quickly if sentiment is high and a high proportion fl at. We see India as somewhat in a po- up for repayment over the next 10 days. been before.” this is announced.” of dollar earnings has acted as a good sition to have a period of credit growth Market is nervous over those papers. ebt problems at one of India’s hedge against dollar strength - that would come from private sec- Matters could become messy if there are key non-banking fi nancial fi rms „ There was no single clear catalyst tor corporate rather than government or more corporate rating downgrades” Dhas failed to shake the confi dence for last week’s selloff , but a combina- household. We’re in this position where „ “Overall equity markets have rallied of BlackRock Investment Institute and tion of “idiosyncratic bad news in the external fi nancing for most emerging up a lot and valuations are not comfort- JO Hambro Capital Management in the fi nancial sector,” concerns surround- markets remains stressed, we think with- able. Except the US and India, all other world’s fastest-growing major economy. ing asset quality and fears building that in that India is an attractive opportunity” markets have corrected. India hasn’t Infrastructure Leasing & Financial Indian Prime Minister Narendra Modi’s „ “The concern from the market has corrected as much. Some investors are Services, a Mumbai-based conglomer- path in next year’s election may not be been about how fast it can grow from taking money off the table as they sense ate that funds projects across India, has as straightforward as previously thought here. This is more the resolution of his- volatility to accentuate” missed payments on more than fi ve of its „ “Our outlook basically remains posi- toric problems rather than a refl ection „ “We are asking investors to be cau- obligations since August. tive, even if turning a little less so lately on the state of corporate India today. We tious and stick to quality names. In our Concerns that the slow payments given emerging value elsewhere,” she said. see corporate India in terms of earnings bond portfolio, we are advising investors could spread to other shadow banks in “It’s a market that requires high selectivi- growth and cash fl ow doing quite well, to take shorter duration” India roiled the nation’s stocks on Friday. ty particularly within the fi nancial sector” so this is more a historical problem be- Jagannadham Thunuguntla, sen- The company is seeking to raise more James Syme, a London-based money ing resolved now rather than an ongoing ior vice president and head of research for than Rs300bn ($4.2bn) selling assets to manager at JO Hambro Capital Manage- credit crisis in Indian corporate” wealth at Centrum Broking Pvt in Mumbai: cut debt, according to an internal memo ment, which oversaw about $40.7bn as „ “In the non-bank fi nancial space, „ “The macro meltdown in terms of seen by Bloomberg. of end-June: the valuations were at a level where it relentless rupee weak weakness and bond Here’s what investors said about the „ India is one of the four emerging was easy for these stocks to fall a long yield hardening has fi nally shown-up its impact IL&FS’s troubles would have on markets he’s overweight on way. We are exposed to the private-sec- impact in full vigour on the market” India’s markets: „ “India is a market that has the po- tor banks. By choice we don’t own any of „ “In bond yield hardening and liquid- Isabelle Mateos y Lago, chief multi- tential to show very strong economic the non-bank fi nancials” ity drying scenario, the fi rst segment asset strategist at BlackRock Investment growth over the next few years. If you Rajesh Cheruvu, head of investment that will come under pressure would be Institute, the asset manager’s think tank view the credit cycle, it should be highly strategy at Sanctum Wealth Management NBFCs in general and housing fi nancing in New York: positive to domestic stocks which we in Mumbai, which has $1bn of assets: companies, in particular” „ “It’s useful to keep in mind that for think goes a long way toward off setting „ “Equity market volatility is going to „ “In the current scenario where there the majority of the year, India has been some of the steep valuations there” rise further. So the panic may spread to are very few places to hide. Investors extremely resilient amidst the broader „ “It’s a market we feel comfortable non-banking fi nance companies too. In- should focus on export-oriented sectors EM sell off ” to own because despite current stresses vestors have not much appetite for housing and zero-debt companies” Sensex snaps losing Asia bourses mixed as trade row rumbles streak; rupee falls AFP Hong Kong Bloomberg, Reuters after crude oil prices surged to a near four- Mumbai year high. The rupee was trading at 72.95 to a dollar, down 0.44% from its Friday’s close sian markets were mixed of 72.63. The home currency opened at 72.96 yesterday following the India’s benchmark equity index rose, ending per dollar. Alatest tit-for-tat tariffs in a five-day losing streak as investors sought Traders were concerned that higher oil the China-US trade row, while in- out shares of exporters that stand to benefit rates may lead to a fiscal slippage and increase vestors are now looking ahead to from a local currency that’s hovering near a inflationary pressures, which could raise the the Federal Reserve’s next policy record low. chances of another rate hike by the Reserve meeting. The S&P BSE Sensex gained 1% to 36,652.06 Bank of India (RBI) in its October meeting. While the levies had been widely points at the close in Mumbai after reversing Brent crude breaches $81 a barrel — its high- expected, there are concerns about an earlier 0.7% decline. Eleven of 19 sector est level since November 2014 — on the back how long the spat will go on for af- sub-indexes compiled by the BSE rose, led of a tightening oil market and Opec leaders ter China cancelled planned talks by a measure of healthcare companies. Sun signalling they won’t be immediately boosting between the two sides and said ne- Pharmaceutical Industries added 2.7% while output. gotiations “cannot be carried out Infosys advanced 1.1%; both companies get Traders are cautious ahead of the US under the threat of tariff s”. most of their sales abroad. Federal Reserve’s policy meeting outcome on Fresh political uncertainty in “Shares of exporters from technology and Wednesday that will likely see interest rates Washington is also catching the pharmaceutical sectors are in demand due to increased for the third time this year, with attention, helping drag on Wall the rupee’s consistent weakness,” Chokka- markets increasingly pricing for another one Street, with speculation Donald lingam G, managing director at investment in December. Trump could fi re Deputy Attorney advisory Equinomics Research & Advisory The 10-year gilt yield stood at 8.131%, below General Rod Rosenstein over re- in Mumbai, said by phone. Still, “volatility will its previous close of 8.122%. Bond yields and ports he suggested removing the remain” due to rising oil prices and the weak- prices move in opposite directions president from offi ce. ened local currency, he said. “Bond markets were acutely impacted by The developments are being India’s rupee, Asia’s worst performing firming crude prices. The concurrent deprecia- closely followed as Rosenstein Investors look at computer screens showing stock information at a brokerage house in Shanghai. The Composite currency this year after falling more than 12% tion in the rupee deepened the weakness in plays a key role in overseeing the index closed down 0.3% to 2,789.04 points yesterday. against the US dollar, is helping exporters, the gilts”, said Edelweiss Finance in a note. Russia probe by Special Counsel according to HSBC Holdings Plc. On the other So far this year rupee has declined 12.2%, Robert Mueller, which Trump has Energy fi rms enjoyed big gains fol- reports that Saudi Arabia was now Strategic Bond Fund, told Bloomb- hand, the nation imports most of its oil and while foreign investors have sold $1.11bn labelled a politically motivated lowing a surge in oil prices on Mon- comfortable with Brent at $80,” erg TV. “I don’t see them stopping the weaker currency has increased fuel prices, and $6.72bn in the equity and debt markets, “witch hunt”. day, which came after the world’s said Stephen Innes, head of Asia- unless we see a pickup in trade with Brent climbing above $80 a barrel on respectively. His removal could deal a ma- top producers maintained output, Pacifi c trade at OANDA. rhetoric which actually does im- Monday. Asian currencies were trading lower as jor blow to the investigation and despite pressure from Trump. Focus is now on the Fed’s policy pact the overall economy.” India has lost its top spot as Asia’s best- $200bn of American tariff s on Chinese goods possibly a constitutional crisis in Brent soared more than 3% to meeting, which ties up on Wednes- Expectations that borrowing performing stock market this year to New took eff ect and China said it won’t hold trade Washington, leading to further po- a four-year high above $81 while day with most bets on a third inter- costs will continue to rise through Zealand after the selloff in non-bank finance talks with the US unless President Donald litical instability. WTI piled on 1.8% to hold around est rate hike of the year. next year is providing strong sup- firms spooked investors already concerned Trump stops his threats. In Asia Shanghai, returned from $72 after Opec and non-Opec na- However, its statement will be port to the dollar, which is up about the eff ect of higher oil prices and a Indonesian rupiah was down 0.28%, Philip- a public holiday to fall 0.3%, Sydney tions said they were satisfied with pored over for its plans for future against the yen, euro and pound as slump in the rupee on the nation’s economy. pines peso 0.19%, Malaysian ringgit 0.1%, China shed 0.3% and Wellington lost 0.2%. the current market outlook. increases and whether its outlook well as most other high-yielding The Sensex’s 14-day relative strength index renminbi 0.09%, Thai baht 0.09%. Singapore Manila and Jakarta were also lower. “Oil continues to hold on to as- has been altered by the ongoing currencies. fell to 31.26 on Monday, closer to the velocity dollar and Japanese yen were down 0.04% But Tokyo, also back after a pub- tonishing gains as the latest move trade war with China. In Tokyo, the Nikkei 225 closed measure’s oversold demarcation of 30. each. However, South Korean won and China lic holiday, ended the morning 0.2% was helped along by headlines from “Infl ation is above target, so they up 0.2% to 23,909.91 points and Meanwhile the rupee weakened to a near Off shore were up 0.09% each and Taiwan dol- higher, Singapore added 0.4% and Opec’s weekend meeting as the can keep going on this sort of slow Shanghai — Composite ended record low against the US dollar yesterday lar rose 0.07%. Taipei gained 0.2%. Hong Kong and organisation agreed to no immedi- normalisation,” Iain Stealey, port- down 0.3% to 2,789.04 points Seoul are closed for public holidays. ate supply boosts and last week’s folio manager at JPMorgan Global yesterday. Gulf Times Wednesday, September 26, 2018 5 BUSINESS

Premier touts FTSE upgrade as success of Money fund giants brace for Poland’s economic model $94bn hit from EU rules

Bloomberg Bloomberg Warsaw London

The graduation of Polish stocks he world’s biggest asset manag- to developed-market status is ers are lobbying for a last-minute proof that the country’s eco- Treprieve from a European Union nomic model combining higher policy that could throw about €80bn social spending and tax rigour ($94bn) of money funds into turmoil. is working, according to Prime BlackRock, JPMorgan Chase & Co Minister Mateusz Morawiecki. and Goldman Sachs Group are among Polish stocks debuted on giants hoping to persuade EU authori- index provider FTSE Russell’s ties to preserve a key feature that in- developed-market gauges on vestors have come to expect: the fi xed Monday, advancing from the share price. Public statements by regu- emerging-asset class after fulfill- lators so far suggest that new rules that ing criteria for mature markets, start on January 21 will eliminate the such as liquidity and ease of ability of such funds to maintain the access for foreign investors. stable value, eroding the main appeal of While the European Union sued such products. its largest formerly communist Corporate treasurers around the member over the erosion of world rely on money funds to park the rule of law on the same day, their cash with the assurance they’ll Morawiecki said that Poland’s be able to take out every dollar – or model will prove to be a success euro – when they need funds for pay- “for years to come.” roll or investments. The new rules leave “Our success story in becom- investors with even fewer safe places ing a truly competitive social to stash their money as many banks market, with a sustainable, are reluctant to accept large cash bal- healthy economy and an ambi- ances, while deposit rates in the region tious welfare policy shows that are expected to stay below zero for at the Polish approach to capital- least another year. Floating-rate funds ism is really working,” he said in aren’t a great alternative, especially for a video message to Bloomberg treasurers, because it would create tax Pedestrians walk past JP Morgan headquarters in New York. JPMorgan, BlackRock and Goldman Sachs are among giants hoping to persuade EU authorities to preserve for an event marking the FTSE and accounting headaches. a key feature that investors have come to expect: the fixed share price. upgrade yesterday. “Clearly, “We are now at the mercy of the pas- a sound and viable economy sage of time,” Alastair Sewell, head of €700bn industry for constant-value At issue now is how the new rules ited under the upcoming regulation. the commission said it has provided does not need to overlook the fund and asset manager ratings EMEA funds, with the remainder based in dol- aff ect a system the industry devised in The industry’s biggest lobbying the memo to people who requested needs of citizens.” and Asia-Pacifi c at Fitch Ratings, said lars and pounds, according to data from 2014, when the European Central Bank groups swung into action with oppo- access to it. The Commission de Sur- Morawiecki said that the in an interview. “With the reform dead- iMoneyNet. BlackRock, JPMorgan and drove one of its main rates below zero in sition letters, with groups represent- veillance du Secteur Financier, Lux- country’s 5% economic growth line drawing ever closer, regulators and Goldman Sachs operate the biggest eu- the aftermath of a debt crisis that trig- ing money-market funds and asset embourg’s fi nancial regulator, had pace, low and stable inflation, national authorities will start needing ro-denominated money-market funds gered negative yields on securities gen- managers telling the regulator that the approved the mechanism and is now record-low unemployment and to make decisions to defi ne what hap- that maintain a fi xed share price. erally favoured by money funds. practice is widely used and approved by monitoring the discussion between better tax collection allowed pens.” Until the Reserve Primary Fund Money funds traditionally accrue national regulators including in Lux- ESMA and the commission, according Poland to reduce its general If EU authorities don’t reverse their broke the buck in the US during the income and distribute it to investors embourg, a major hub for the fund in- to a spokeswoman. government deficit to 1.7% of stance, fund companies have warned 2008 fi nancial crisis and spread panic in the form of additional fund shares. dustry. ESMA was misguided in its ap- European Parliament lawmakers gross domestic product last that the policy could mean the death of through the fi nancial industry, money- Each share retains the fi xed price. On proach, according to the groups whose who drafted the underlying legislation year, well below the EU’s 3% stable-price euro funds, as managers market funds were considered among days when income is negative, the in- members include the asset-manage- say the regulatory statements are out ceiling. are forced to off er fl oating-rate funds the most predictable and safe invest- dustry has relied on a newer tool called ment units of JPMorgan, Goldman of step with their intent following three Such economic numbers “are or investors turn away from the fund ments around. the reverse distribution mechanism, Sachs, Morgan Stanley and others. years’ worth of debate. Politicians led finally starting to have a real, industry altogether and move their The collapse spurred regulators fi rst which works in the opposite direction But the industry faced another set- by Neena Gill, the primary lawmaker humane impact,” Morawiecki money to banks. Peter Crane, founder in the US and then in the EU to adopt by reducing the number of shares an back in January when the European responsible for the legislation, said said. Poverty in Poland has Massachusetts-based research fi rm protections for investors to make sure investor has in a fund while each re- Commission, the EU’s executive arm, earlier this year it wouldn’t be good “considerably” decreased, child Crane Data LLC, said he expects half they can easily get their money back. maining share keeps the fi xed price. supported ESMA. The commission’s practice “to change a highly contested poverty is nearly eradicated and of the roughly €80bn in investments While the industry fended off the The industry was caught by surprise lawyers wrote a private memo support- regulation without following the ap- income inequality dropped to to wind up at variable net-asset value most draconian proposals in both re- last year when the European Securities ing their position and which was shared propriate procedures a few months be- a record low due to new social funds and the other half at banks. gions, the restrictions have still had and Markets Authority published tech- with a select number of industry play- fore its entry into application.” programs. The latter option is especially un- a major impact in how the industry is nical standards for the implementation ers but never released offi cially. It was Less than four months before the The boom has been driven palatable to fund companies, who’ve structured. US investors showed their of the new rules. later disclosed under a freedom of in- regulation kicks in, the industry re- mainly by consumer spending enjoyed steady growth in assets of preference for fi xed share price funds Buried in paragraph 186 of the 162- formation request. mains in a lurch as it explores viable as the government pumps bil- constant-value products in the past by yanking hundreds of billions of dol- page document, ESMA had a bomb- ESMA has asked the commission alternatives. While interest rates are lions of zloty into the economy. decade. Euro-denominated funds ac- lars from funds that had to fl oat their shell: its view that the industry’s share to disclose the memo publicly to help increasing in the US and UK, the ECB’s Investment, on the other hand, count for just over 11% of a roughly shares for the fi rst time. cancellation practice would be prohib- clarify matters. A representative for deposit rate is still below zero. remains subdued with compa- nies – especially those not run by the state – concerned about repeated regulatory and tax changes by the ruling Law & Justice party, which is also en- gulfed in a growing EU conflict. As EMs rebound, sceptics are getting harder to fi nd The EU’s executive sued Poland over its Supreme Court revamp in a fast-track process Bloomberg cheapest they’ve been in 10 to 15 years. both equities and currencies to their gentina, Brazil and Russia. Tundra on emerging markets, an escalation in on Monday, escalating a standoff Bangkok Underscoring the increase in investor lowest in more than a year earlier this Fonder, which handles $400mn in as- the trade dispute between China and over sweeping judicial changes appetite, the market value of the big- month. sets, made its fi rst ever investment the US that has unfolded over the past which it says breach democratic gest exchange-traded fund tracking The MSCI Emerging Markets Cur- in Turkey and sees opportunities in couple of days still remains as a risk for values. The government in War- fter two weeks of a rally in developing-nation Eurobonds climbed rency Index rose for a second week in the developing-nation countries including many. saw has done little to address the emerging-market assets, some to a record last week. fi ve days to Friday, completing its best Malaysia and the Philippines, Shamoon With little prospect for the outlook concerns, knowing the bloc lacks Ainvestors are becoming more “EM assets rallied strongly last week weekly performance since February. A Tariq, Stockholm-based vice chief in- for international trade to improve sig- the unanimity required to impose positive on the asset class. and we think this marks the beginning Bloomberg Barclays index on local-cur- vestment offi cer, said in an interview. nifi cantly and an expected slowdown political sanctions and that talks Morgan Stanley removed its “bear- of a period of stability and range-bound rency government bonds climbed 0.5% Despite “eye-watering” volatility in in China, appetite for emerging-mar- on tying billions of euros of EU ish call” on the fi xed income and markets,” Morgan Stanley strategists last week, the most since March. emerging markets, “you can make the ket assets will be muted in the com- development aid to rule-of-law currencies of developing countries, including London-based James Lord Morgan Stanley turned neutral on argument that you are getting paid to ing months, Per Hammarlund, chief are still at an early stage. Matthews Asia said it is the “best wrote in a note dated Monday. “We EM local markets and credit. It’s in- harvest that volatility,” Standard Char- emerging-markets strategist at SEB in Morawiecki said inflows from time” to buy emerging markets since think this remains a diffi cult world for creasing exposure to high-yielding tered’s Robertsen said at an event in Jo- Stockholm, wrote in a recent note. value-added tax increased more the so-called taper tantrum, Tundra EM, but we’ve likely adjusted enough currencies including those in Argenti- hannesburg. But for Morgan Stanley, the move than 25% in the past two years, Fonder AB is also taking advantage of for now.” na, Indonesia and Russia to “like,” and Markets “have come off quite a bit,” in global markets last week suggests with revenue from personal the selloff while for Eric Robertsen, Growing policy responses from cen- removing “dislike” on Brazil’s, accord- Tariq said. “Once in a while you get su- that “high risk premia for trade issues income and corporate taxes Standard Chartered’s global head of tral banks in emerging economies, in- ing to the note. per cheap stocks and companies, obvi- are embedded in EM assets,” though also “rapidly growing.” foreign-exchange, rates and credit cluding Indonesia, Russia and Turkey It raised Mexico rates to “like” and ously it’s worth having a look.” the bank expects trade tensions to research, emerging-markets are the have helped ease the selloff s that took took away “dislike” from those in Ar- While some are turning less bearish continue escalating. The curious case of Citigroup’s highly recommended lagging stock

Bloomberg four years. “But this is not an ‘I love solutions business. The unit helps leadership under Corbat. The biggest New York you’ letter, this is more like ‘Hey, there’s Corps handle their cash at home and announcement was the promotion enormous potential that Citi is not around the world. The idea is those of Mark Mason to succeed longtime realising.”’ same companies will eventually hire chief financial off icer John Gerspach Investors haven’t exactly embraced “And we think there could be some the bank to meet other needs, such as in March. The firm has also disclosed Citigroup in 2018, leaving its stock catalysts for doing so,” he said. advising on mergers and acquisitions, shakeups in investment banking, behind competitors. But analysts have Once the most valuable bank in the underwriting securities or making big consumer operations and regional been falling in love. country, Citigroup tumbled especially foreign-exchange trades. oversight. Shares of the New York bank – known hard during the financial crisis, This year, the activist fund ValueAct The next generation of managers will for its vast overseas operations – have recording more than $140bn in losses Capital Management amassed a $1.7bn have to hit targets for profitability and stagnated this year on concerns it and asset write-downs. It drew a bigger stake in Citigroup, making the bank its cost cuts that analysts have previously could get burned by a rout in emerging bailout than any other US bank and biggest holding. ValueAct has said it said may be too lofty. This month, the markets and a looming trade war. Yet then spent much of the past decade was drawn to the treasury and trade firm confronted remaining sceptics, a growing number of analysts are repairing itself, selling $800bn of sub- solutions unit, noting the business maintaining a target for eff iciency, suggesting it’s primed for brighter prime assets and exiting more than 20 serves 80% of Fortune 500 companies. promising to eliminate even more days after building cash-management businesses. “Some of our most successful expenses than previously forecast and relationships with global companies “Our restructuring is over,” chief investments have been made in raising its target for profitability. and shaking up senior management. executive off icer Mike Corbat declared The headquarters of Citigroup in London. Citigroup’s stock is now both a laggard situations where other investors cannot “We feel confident we’ll continue to Citigroup’s stock is now both a laggard last year at the company’s first investor among large US commercial banks and one of the most-recommended, with seem to shed their past perceptions of a strengthen our performance and among large US commercial banks day since 2008. “We aren’t going to pickers making the case it’s undervalued. company’s prospects,” ValueAct wrote deliver the returns our shareholders and one of the most-recommended, take outsized risks. We aren’t going to in a letter to investors. “This was the expect and deserve,” Citigroup said in a with pickers making the case it’s get into hobbies or into new businesses would still be nursing a 50% loss on more capital to shareholders. Lending case with Microsoft and we believe it is statement for this article. undervalued. which are tangential to our strategy. We Citigroup. The other three bets would via credit cards, for example, is also the case with Citigroup, which has Still, doubts are hard to stamp out. “What’s exciting from an investor don’t need to. We like the hand we’re be profitable, in some cases doubling supposed to contribute to growth in its long been regarded as the laggard of Vern McKinley, a financial services standpoint is that there’s a new set of playing in today’s environment.” or even quadrupling in that time. This consumer business. the large universal banks.” consultant who recently published eyes that will be taking a fresh look at Despite such pledges, Citigroup’s year, Citigroup is trailing the modest 2% And within the institutional clients The fund’s stake also keeps pressure on “Borrowed Time,” a history of Citigroup,” said Mike Mayo, an analyst history is hard to forget. An investor advance in the KBW Bank Index. group – housing investment bankers managers not to become complacent, Citigroup and the bailouts it received, at Wells Fargo & Co, who suggests a who bought shares of the four largest Citigroup is pointing to some of its and traders – Corbat has tried calling Mayo said. said he suspects the firm’s reassuring new management team could help US banks the day Lehman Brothers traditional banking businesses for attention to what he calls its backbone: This month, several analysts have focus on traditional banking won’t double the stock’s price over the next Holdings filed for bankruptcy in 2008 future growth as it seeks to pay out the much less flashy treasury and trade welcomed Citigroup’s eff orts to refresh prevent future stumbles. Gulf Times 6 Wednesday, September 26, 2018 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Solidarity Saudi Takaful Co 16.46 -0.12 177,973 Specialities Group Holding C 72.40 0.56 450,400 Aloula Co 0.53 0.00 - Amana Cooperative Insurance 16.44 3.27 946,946 Abyaar Real Eastate Developm 18.10 0.00 319,655 Al-Omaniya Financial Service 0.28 0.00 - Alabdullatif Industrial Inv 10.98 0.00 49,189 Kgl Logistics Company Kscc 43.00 0.70 2,841,295 Al-Hassan Engineering Co 0.03 0.00 - Saudi Printing & Packaging C 16.18 0.37 98,803 Combined Group Contracting 370.00 -2.37 51,200 Al-Fajar Al-Alamia Co 0.75 0.00 - Saudi Paper Manufacturing Co 11.62 -1.19 317,724 Jiyad Holding Co Ksc 89.10 -1.22 100,424 Al-Anwar Ceramic Tiles Co 0.09 0.00 65,092 Alinma Bank 21.12 0.67 13,587,925 Boubyan Intl Industries Hold 29.00 2.11 10 Al Suwadi Power 0.12 -1.71 854,888 Almarai Co 49.20 2.82 526,295 Gulf Investment House Ksc 18.30 4.57 41,099 Al Sharqiya Invest Holding 0.10 -0.99 88,822 Falcom Saudi Equity Etf 30.80 0.98 213,913 Boubyan Bank K.S.C 561.00 0.72 2,851,263 Al Maha Petroleum Products M 0.87 0.46 40,461 United International Transpo 27.50 0.18 200,575 Ahli United Bank B.S.C 213.00 0.00 6,327,830 Al Maha Ceramics Co Saoc 0.21 0.00 - Hsbc Amanah Saudi 20 Etf 31.00 0.00 - Osos Holding Group Co 93.00 0.00 50 Al Madina Takaful Co Saoc 0.09 -2.13 1,101,000 QATAR Saudi International Petroche 21.50 5.19 1,343,499 Al-Eid Food Ksc 60.00 0.00 3,000 Al Madina Investment Co 0.04 -2.38 211,223 Falcom Petrochemical Etf 34.10 0.00 190 Qurain Petrochemical Industr 330.00 -0.30 168,321 Al Kamil Power Co 0.38 0.00 - Company Name Lt Price % Chg Volume Walaa Cooperative Insurance 23.90 0.00 130,724 Ekttitab Holding Co Sak 24.00 -1.23 101 Al Jazerah Services -Pfd 0.55 0.00 - Bank Al-Jazira 14.10 1.44 3,667,541 Real Estate Trade Centers Co 23.40 0.00 100 Al Jazeera Steel Products Co 0.28 0.00 - Zad Holding Co 103.30 2.23 5,948 Al Rajhi Bank 86.70 2.60 3,076,023 Acico Industries Co Kscc 208.00 0.00 10,000 Al Jazeera Services 0.11 0.00 70,228 Widam Food Co 74.00 2.78 41,165 Samba Financial Group 30.30 1.34 1,131,132 Kipco Asset Management Co 70.00 0.00 62,750 Al Izz Islamic Bank 0.09 0.00 98,000 Vodafone Qatar 8.64 -0.58 355,019 United Electronics Co 49.00 -2.58 331,250 National Petroleum Services 818.00 0.37 919 Al Buraimi Hotel 0.88 0.00 - United Development Co 14.14 -0.91 93,361 Allied Cooperative Insurance 16.42 -3.75 203,856 Alimtiaz Investment Group 129.00 0.00 1,251,254 Al Batinah Power 0.12 -2.48 20,137 Salam International Investme 5.10 -0.20 6,641 Malath Insurance 12.22 -0.33 344,315 Ras Al Khaimah White Cement 77.00 0.00 5,000 Al Batinah Hotels 1.13 0.00 - Qatar & Oman Investment Co 5.89 -0.67 1,587 Alinma Tokio Marine 18.88 -0.21 77,618 Kuwait Reinsurance Co Ksc 0.00 0.00 - Al Batinah Dev & Inv 0.09 0.00 - Qatar Navigation 65.50 -1.15 600 Arabian Shield Cooperative 18.24 -0.22 214,220 Kuwait & Gulf Link Transport 99.00 0.00 61,542 Al Anwar Holdings Saog 0.12 0.86 49,640 Qatar National Cement Co 56.50 3.10 5,100 Savola 31.00 3.33 346,270 Humansoft Holding Co Ksc 3,311.00 -1.13 145,261 Al Ahlia Insurance Co Saoc 0.36 0.00 - Qatar National Bank 174.99 -0.01 351,181 Wafrah For Industry And Deve 15.60 -1.89 140,977 Automated Systems Co Kscc 117.00 -1.68 2,501 Ahli Bank 0.16 0.00 - Qatar Islamic Insurance 51.00 -0.97 8,286 Fitaihi Holding Group 11.80 1.20 103,700 Metal & Recycling Co 68.00 0.00 25 Acwa Power Barka Saog 0.78 0.00 - Qatar Industrial Manufactur 41.21 0.02 200 Tourism Enterprise Co/ Shams 31.60 0.32 62,209 Gulf Franchising Holding Co 60.00 0.00 6 Abrasives Manufacturing Co S 0.05 0.00 - Qatar International Islamic 57.28 0.49 35,863 Sahara Petrochemical Co 17.22 1.53 1,260,174 Al-Enma’a Real Estate Co 30.10 0.00 52,877 A’saff a Foods Saog 0.61 0.00 - Qatari Investors Group 29.90 -1.94 4,293 Herfy Food Services Co 42.05 -1.52 40,120 National Mobile Telecommuni 779.00 2.50 23,683 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Islamic Bank 137.00 0.74 26,178 Saudi Ind Investment Group 27.45 1.48 355,330 Unicap Investment And Financ 60.50 3.42 1,780,500 #N/A Invalid Security 0.00 0.00 - Qatar Gas Transport(Nakilat) 17.60 -0.40 329,529 Salama Cooperative Insurance 16.62 -1.89 593,881 Al Salam Group Holding Co 32.50 -1.52 815,800 #N/A Invalid Security 0.00 0.00 - Qatar General Insurance & Re 44.00 -3.51 220 Emaar Economic City 9.81 0.72 2,418,258 Al Aman Investment Company 46.50 0.00 104,315 #N/A Invalid Security 0.00 0.00 - Qatar German Co For Medical 5.00 -0.99 7,102 Alahli Takaful Co 25.00 1.87 55,054 Mashaer Holding Co Ksc 44.50 1.14 256,629 #N/A Invalid Security 0.00 0.00 - Qatar Fuel Qsc 157.00 4.66 312,834 Anaam International Holding 10.54 -0.57 141,322 Manazel Holding 32.00 3.23 150,700 #N/A Invalid Security 0.00 0.00 - Qatar First Bank 5.05 0.40 352,660 Saudi Telecom Co 84.00 2.44 460,660 Tijara And Real Estate Inves 48.90 -0.61 48,030 #N/A Invalid Security 0.00 0.00 - Qatar Electricity & Water Co 191.00 0.74 11,614 Al Alamiya Cooperative Insur 35.85 -1.10 198,037 Jazeera Airways Co Ksc 735.00 0.00 105,318 #N/A Invalid Security 0.00 0.00 - Qatar Exchange Index Etf 96.70 0.00 1,500 Saudi Industrial Services Co 13.18 0.61 205,038 Commercial Real Estate Co 83.30 4.13 8,580,273 Qatar Cinema & Film Distrib 14.86 -9.99 131 Al-Ahsa Development Co. 10.00 0.00 115,670 National International Co 66.30 9.95 100 Al Rayan Qatar Etf 23.42 0.00 - National Co For Glass In/The 18.28 0.55 49,207 Taameer Real Estate Invest C 28.60 4.76 4,884,540 Qatar Insurance Co 38.20 -0.78 255,421 Dur Hospitality Co 20.92 2.05 108,346 Gulf Cement Co 79.00 1.28 150,000 Ooredoo Qpsc 67.85 0.52 41,597 Tabuk Cement Co 12.06 -0.66 105,048 Heavy Engineering And Ship B 497.00 0.00 785,956 UAE National Leasing 8.88 1.37 34,385 Sasco 15.36 0.92 40,647 National Real Estate Co 104.00 3.38 463,700 Mazaya Qatar Real Estate Dev 6.85 0.00 52,192 Saudi Cement 41.95 4.88 107,548 Al Safat Energy Holding Comp 27.00 -5.26 117 Company Name Lt Price % Chg Volume Mesaieed Petrochemical Holdi 16.49 0.24 997,662 Aseer Trading Tourism & Manu 10.04 -0.20 114,189 Kuwait National Cinema Co 999.00 5.05 250 Al Meera Consumer Goods Co 151.40 -0.39 22,387 Nama Chemicals Co 24.74 1.73 232,668 Danah Alsafat Foodstuff Co 40.80 -4.90 70,894 Waha Capital Pjsc 1.85 0.00 - Medicare Group 65.50 -0.26 22,986 Saudi Arabian Mining Co 51.50 4.78 676,413 Independent Petroleum Group 439.00 0.00 500 United Insurance Company 2.00 0.00 - Mannai Corporation Qsc 57.89 0.68 65 Yanbu Cement Co 20.50 1.08 173,949 Kuwait Real Estate Co Ksc 46.30 0.22 723,050 United Arab Bank Pjsc 1.13 -9.60 50,000 Masraf Al Rayan 37.32 -0.45 144,923 Saudi Fisheries 16.78 -1.29 819,438 Salhia Real Estate Co Ksc 332.00 0.61 220,100 Union National Bank/Abu Dhab 4.96 -0.80 1,385,569 Al Khalij Commercial Bank 10.95 0.74 202,269 Ash-Sharqiyah Development Co 47.25 0.53 50,394 Gulf Cable & Electrical Ind 388.00 0.00 255,472 Union Insurance Co 1.65 0.00 - Industries Qatar 121.00 -1.02 261,692 Makkah Construction & Devepl 81.10 -0.37 14,221 Kuwait Finance House 0.00 0.00 - Union Cement Co 0.00 0.00 - Islamic Holding Group 26.66 2.54 1,050 Al Jouf Cement 8.92 -1.98 695,236 Gulf North Africa Holding Co 50.00 0.00 113,000 Umm Al Qaiwain General Inves 1.00 0.00 - Investment Holding Group 5.40 0.75 295,335 Abdullah A.M. Al-Khodari Son 7.24 0.00 - Hilal Cement Co 112.00 0.00 40 Sudan Telecommunications Gro 0.47 -3.13 50,000 Gulf Warehousing Company 39.80 0.00 752 Knowledge Economic City 11.56 1.40 523,732 Osoul Investment Kscc 53.40 0.19 8,319 Sharjah Islamic Bank 1.18 0.85 92,300 Gulf International Services 17.75 0.85 107,755 Al-Ahlia Cooperative Insuran 10.40 -0.38 136,771 Gulf Insurance Group Ksc 649.00 0.00 100 Sharjah Insurance Company 2.84 0.00 - Ezdan Holding Group 10.49 0.87 246,960 Al Rajhi Co For Co-Operative 56.50 -0.18 177,402 Umm Al Qaiwain General Inves 58.80 0.00 714 Sharjah Group 1.30 0.00 - Doha Insurance Co 13.00 0.00 - Alkhodar Ab Equity 54.00 1.69 155,692 Aayan Leasing & Investment 35.20 -0.28 2,810,168 Sharjah Cement & Indus Devel 0.93 0.00 - Doha Bank Qpsc 23.20 -1.32 140,715 Kec Ab Equity 21.98 -2.14 239,521 Alrai Media Group Co Ksc 52.30 2.35 70,002 Ras Al-Khaimah National Insu 3.20 0.00 - Dlala Holding 12.07 -0.49 11,774 Alahlia Ab Equity 23.30 -0.17 26,922 National Investments Co 85.40 0.47 1,000 Ras Al Khaimah White Cement 0.86 0.00 - Commercial Bank Pqsc 39.98 0.45 260,663 Arcci Ab Equity 8.00 -1.23 733,409 Commercial Facilities Co 176.00 0.00 15,000 Ras Al Khaimah Ceramics 2.29 -0.87 50,000 Barwa Real Estate Co 35.49 -0.45 170,468 Appc Ab Equity 20.54 -7.64 8,818,967 Yiaco Medical Co. K.S.C.C 119.00 0.00 9,600 Ras Al Khaimah Cement Co Psc 0.69 -1.43 315,000 Al Khaleej Takaful Group 9.91 0.20 5,000 Albabtai Ab Equity 43.85 2.21 1,963,795 Munshaat Real Estate Project 110.00 0.00 300,800 Ras Al Khaima Poultry 1.89 0.00 - Aamal Co 9.59 0.00 - Noor Financial Investment Co 51.00 0.00 165,900 Rak Properties 0.61 -1.14 70,000 Al Tamdeen Investment Co 280.00 0.00 30,029 Ooredoo Qpsc 65.65 0.00 - KUWAIT Credit Rating & Collection 20.20 0.00 10 Oman & Emirates Inv(Emir)50% 0.50 0.00 - Ifa Hotels & Resorts Co. K.S 96.00 3.34 3,100 National Takaful Company 0.53 0.00 - SAUDI ARABIA National Marine Dredging Co 2.85 0.00 - Company Name Lt Price % Chg Volume Sokouk Holding Co Sak 46.40 0.00 350,715 Warba Bank Kscp 236.00 0.43 316,809 National Investor Co/The 0.58 0.00 - Company Name Lt Price % Chg Volume Sultan Center Food Products 54.00 -3.57 30,421 Viva Kuwait Telecom Co 711.00 -0.14 8,982 National Corp Tourism & Hote 1.95 0.00 - Kuwait Foundry Co Sak 192.00 0.00 5,000 Mezzan Holding Co Kscc 665.00 -0.30 25,000 National Bank Of Umm Al Qaiw 2.45 -2.00 200,262 United Wire Factories Compan 15.60 0.52 29,572 Kuwait Financial Centre Sak 104.00 0.00 10,025 National Bank Of Ras Al-Khai 4.25 -0.93 144,522 Etihad Etisalat Co 18.66 2.30 1,619,356 Ajial Real Estate Entmt 140.00 0.00 5,253 National Bank Of Fujairah 2.96 0.00 - Dar Al Arkan Real Estate Dev 9.91 4.98 21,084,052 Kuwait Finance & Investment 46.50 -3.13 1,000 Methaq Takaful Insurance 0.78 0.00 21,950 Alawwal Bank 13.98 -0.14 856,708 National Industries Co Ksc 170.00 0.00 7,267 OMAN Manazel Real Estate Pjsc 0.44 -0.45 782,500 Rabigh Refining And Petroche 23.52 1.55 1,209,535 Kuwait Real Estate Holding C 30.80 -0.32 10,803 Invest Bank 2.35 0.00 - Banque Saudi Fransi 31.95 0.79 197,718 Company Name Lt Price % Chg Volume Securities House/The 49.50 -1.00 699,862 Intl Holdings Co Pjsc 1.20 1.69 406,000 Saudi Enaya Cooperative Insu 20.30 0.30 446,829 Voltamp Energy Saog 0.00 Boubyan Petrochemicals Co 1,018.00 0.30 677,480 0.29 - Insurance House 0.85 0.00 - Mediterranean & Gulf Insuran 15.40 10.00 1,770,268 Vision Insurance Saoc 0.00 Al Ahli Bank Of Kuwait 295.00 1.72 51,100 0.15 1,178 Gulf Pharmaceutical Ind Psc 2.20 0.00 - Saudi British Bank 31.90 2.24 212,807 United Power/Energy Co- Pref 0.00 Ahli United Bank (Almutahed) 300.00 0.67 243,604 1.00 - Gulf Medical Projects 1.98 0.00 - Red Sea International Co 15.14 -0.26 45,635 United Power Co Saog 0.00 National Bank Of Kuwait 822.00 1.48 9,072,679 3.44 - Gulf Cement Co 0.93 1.09 464,065 Takween Advanced Industries 10.30 0.98 405,756 United Finance Co 0.00 Commercial Bank Of Kuwait 510.00 0.00 10,500 0.10 5,100 Fujairah Cement Industries 1.20 0.00 - Sabb Takaful 18.80 -0.63 147,465 Ubar Hotels & Resorts 0.00 Kuwait International Bank 241.00 0.84 2,436,495 0.13 - Fujairah Building Industries 1.56 0.00 - Saudi Arabian Fertilizer Co 79.70 0.89 353,243 Takaful Oman 0.00 Gulf Bank 257.00 0.78 2,118,001 0.13 - Foodco Holding Pjsc 3.35 0.00 - National Gypsum 12.78 1.11 60,525 Taageer Finance 0.00 Al-Massaleh Real Estate Co 45.50 19.74 1,290,300 0.10 - First Abu Dhabi Bank Pjsc 14.32 0.42 2,155,712 Saudi Ceramic Co 17.00 0.00 153,196 Sweets Of Oman 0.00 Al Arabiya Real Estate Co 30.50 -2.56 28,716 0.55 - Finance House 1.68 0.00 - National Gas & Industrializa 27.00 1.31 65,301 Sohar Power Co 0.00 Kuwait Remal Real Estate Co 33.50 3.72 275,100 0.11 - Eshraq Properties Co Pjsc 0.55 -0.36 1,598,500 Saudi Pharmaceutical Industr 31.70 0.48 27,669 Sohar Poultry 0.00 A’ayan Real Estate Co Sak 58.50 0.00 40,000 0.21 - Emirates Telecom Group Co 16.00 0.00 689,036 Thimar 26.30 1.15 80,375 Smn Power Holding Saog 0.00 Investors Holding Group Co.K 13.70 0.00 3,540,712 0.60 - Emirates Insurance Co. (Psc) 6.50 0.00 - National Industrialization C 19.16 1.38 1,604,778 Shell Oman Marketing - Pref 0.00 Al-Mazaya Holding Co 74.00 -1.07 222,206 1.05 - Emirates Driving Company 7.30 0.00 - Batic Investments And Logist 36.05 0.14 44,839 Shell Oman Marketing 0.00 Al-Madar Finance & Invt Co 136.00 -0.73 2,033,149 1.49 - Dana Gas 1.14 0.00 6,495,448 Saudi Electricity Co 16.46 1.35 1,845,987 Sharqiyah Desalination Co Sa 0.00 Gulf Petroleum Investment 25.50 -1.16 236,003 2.75 - Commercial Bank Internationa 0.63 0.00 - Saudi Arabia Refineries Co 40.55 1.25 211,712 Sembcorp Salalah Power & Wat 0.00 Mabanee Co Sakc 644.00 1.10 35,894 0.22 4,500 Bank Of Sharjah 1.09 0.00 181,000 Arriyadh Development Company 15.98 0.25 467,695 Salalah Port Services 0.00 Inovest Co Bsc 86.40 0.47 20,100 0.60 - Axa Green Crescent Insurance 0.50 0.00 - Al-Baha Development & Invest 14.94 -0.93 48,642 Salalah Mills Co 0.00 Al-Deera Holding Co 17.90 -0.56 121,021 0.77 - Arkan Building Materials Co 0.54 -2.01 48,565 Saudi Research And Marketing 100.80 0.60 52,156 Salalah Beach Resort Saog 0.00 Mena Real Estate Co 25.50 8.51 182,000 1.38 - Alkhaleej Investment 2.10 0.00 - Aldrees Petroleum And Transp 27.40 0.37 116,596 Sahara Hospitality 0.00 Amar Finance & Leasing Co 39.00 0.00 800 2.38 - Aldar Properties Pjsc 1.78 -1.11 4,267,824 Saudi Vitrified Clay Pipe Co 48.00 -0.21 6,775 Renaissance Services Saog 4.06 United Projects For Aviation 650.00 0.15 3,000 0.41 546,700 Al Wathba National Insurance 12.76 0.00 - Jarir Marketing Co 184.00 1.77 34,060 Raysut Cement Co -1.80 National Consumer Holding Co 0.00 0.00 - 0.44 22,450 Al Qudra Holding Pjsc 0.99 0.00 - Arab National Bank 32.35 0.78 153,126 Phoenix Power Co Saoc 0.00 Amwal International Investme 63.00 0.00 110 0.12 97,180 Al Khazna Insurance Co 0.25 0.00 - Yanbu National Petrochemical 72.00 1.12 413,912 Packaging Co Ltd 0.00 Equipment Holding Co K.S.C.C 28.90 -1.70 232,988 2.21 - Al Fujairah National Insuran 300.00 0.00 - Arabian Cement 18.90 -0.53 165,185 Ooredoo 0.76 Arkan Al Kuwait Real Estate 79.50 0.00 56,650 0.53 95,600 Al Dhafra Insurance Co. P.S. 3.85 0.00 - Middle East Specialized Cabl 7.12 -0.84 256,214 Ominvest 0.00 Gfh Financial Group Bsc 101.00 0.00 338,558 0.34 5,000 Al Buhaira National Insuranc 2.21 0.00 - Al Khaleej Training And Educ 12.00 -1.48 263,523 Oman United Insurance Co 0.00 Energy House Holding Co Kscp 41.00 46.43 1,332,684 0.31 - Al Ain Ahlia Ins. Co. 38.00 0.00 - Al Sagr Co-Operative Insuran 12.30 0.33 319,862 Oman Telecommunications Co 2.40 Kuwait Co For Process Plant 242.00 0.00 4,100 0.85 63,012 Agthia Group Pjsc 4.42 -1.78 19,000 Trade Union Cooperative Insu 22.60 1.53 193,560 Oman Refreshment Co 0.00 Al Maidan Dental Clinic Co K 1,220.00 0.00 27,744 1.75 - Abu Dhabi Ship Building Co 1.19 0.00 - Arabia Insurance Cooperative 20.30 -0.98 97,848 Oman Qatar Insurance Co 0.00 National Shooting Company 17.00 3.03 10,064,992 0.11 - Abu Dhabi Natl Co For Buildi 0.48 0.00 - Saudi Chemical Company 32.15 -0.92 115,781 Oman Packaging 0.00 Al-Ahleia Insurance Co Sakp 427.00 0.00 93,214 0.28 - Abu Dhabi National Takaful C 4.40 0.00 - Fawaz Abdulaziz Alhokair & C 23.62 -0.08 188,033 Oman Oil Marketing Company 0.00 Wethaq Takaful Insurance Co 26.50 -1.49 13,050 1.10 - Abu Dhabi National Oil Co Fo 2.39 -0.42 205,614 Bupa Arabia For Cooperative 102.40 1.79 181,326 Oman National Engineering An 0.00 Salbookh Trading Co Kscp 44.50 -1.11 9,520 0.17 - Abu Dhabi National Insurance 3.75 0.00 - Wafa Insurance 11.56 1.94 709,250 Oman Investment & Finance -2.00 Aqar Real Estate Investments 62.10 0.00 6,282 0.10 450,000 Abu Dhabi National Hotels 2.85 0.00 - Jabal Omar Development Co 39.80 -0.38 576,270 Oman Intl Marketing 0.00 Hayat Communications 77.00 0.00 150 0.52 - Abu Dhabi National Energy Co 1.13 0.00 18,741 Saudi Basic Industries Corp 125.80 2.78 2,734,453 Oman Flour Mills 0.00 Soor Fuel Marketing Co Ksc 120.00 0.84 28,847 0.74 - Saudi Kayan Petrochemical Co 16.98 2.04 9,616,555 Oman Fisheries Co 0.00 Tamkeen Holding Co 12.70 0.00 35,000 0.09 66,000 Etihad Atheeb Telecommunicat 5.35 0.00 - Oman Europe Foods Industries 0.00 Burgan Co For Well Drilling 114.00 0.00 100 1.00 - Co For Cooperative Insurance 55.50 0.00 354,465 Oman Education & Training In 0.00 BAHRAIN Kuwait Resorts Co Kscc 56.30 0.54 345,055 0.21 - National Petrochemical Co 27.80 1.09 117,767 Oman Chromite 0.00 Oula Fuel Marketing Co 118.00 -0.84 31,681 3.64 - Gulf Union Cooperative Insur 13.34 0.15 57,392 Oman Chlorine 0.00 Palms Agro Production Co 80.00 0.00 10,380 0.32 - Company Name Lt Price % Chg Volume Gulf General Cooperative Ins 13.30 -0.30 46,235 Oman Ceramic Company 0.00 Mubarrad Holding Co Ksc 59.40 0.17 29,359 0.42 - Basic Chemical Industries 22.40 1.63 43,721 Oman Cement Co -1.68 Zain Bahrain Bscc 0.00 0.00 - Shuaiba Industrial Co 220.00 0.00 4,000 0.35 30,000 Saudi Steel Pipe Co 22.24 1.46 587,073 Oman Cables Industry 0.00 United Paper Industries Bsc 0.00 0.00 - Aan Digital Services Co 19.30 -1.03 93,200 1.00 - Buruj Cooperative Insurance 24.00 0.00 74,250 Oman & Emirates Inv(Om)50% 0.00 United Gulf Holding Bsc 1.12 0.00 1,500 First Takaful Insurance Co 44.50 0.00 8,000 0.13 60 Mouwasat Medical Services Co 74.40 -1.20 75,410 Natl Aluminium Products 0.00 Trafco Group Bsc 0.32 0.00 100,250 Kuwaiti Syrian Holding Co 35.00 0.00 26,700 0.39 - Southern Province Cement Co 33.40 0.30 161,767 National Securities 0.00 Takaful International Co 0.09 0.00 166,491 National Cleaning Company 57.40 0.00 1,000 0.04 - Maadaniyah 18.50 0.00 12,463 National Real Estate Develop 0.00 Seef Properties 0.22 0.00 145,000 United Real Estate Company 64.00 0.00 9,400 5.00 - Yamama Cement Co 13.70 0.00 47,013 National Pharmaceutical 0.00 National Bank Of Bahrain Bsc 0.61 0.83 61,106 Agility 843.00 0.96 2,344,917 0.12 - Jazan Energy And Development 15.38 0.00 52,554 National Mineral Water 0.00 Nass Corp Bsc 0.10 0.00 106,000 Kuwait & Middle East Fin Inv 33.50 3.08 180,604 0.10 - Zamil Industrial Investment 19.98 0.50 56,721 National Life & General Insu 0.00 Khaleeji Commercial Bank 0.09 0.00 85,000 Fujairah Cement Industries 65.50 0.00 75,800 0.34 75,000 Alujain Corporation (Alco) 30.90 0.00 250,869 National Gas Co 0.00 Ithmaar Holding Bsc 0.11 0.00 700,000 Livestock Transport & Tradng 200.00 0.00 20,000 0.33 37,700 Tabuk Agricultural Developme 10.12 0.00 120,951 National Finance Co 0.00 Investcorp Bank -$Us 0.00 0.00 - International Resorts Co 21.80 3.81 177,300 0.13 - United Co-Operative Assuranc 11.28 -0.18 141,981 National Detergent Co Saog 0.00 Inovest Co Bsc 0.00 0.00 - National Industries Grp Hold 162.00 1.25 2,032,971 0.70 - Qassim Cement/The 32.00 0.00 17,371 National Biscuit Industries 0.00 Gulf Hotel Group B.S.C 0.00 0.00 - Warba Insurance Co 82.10 0.12 61,260 3.75 - Saudi Advanced Industries 12.42 0.16 117,520 National Bank Of Oman Saog -0.55 Gfh Financial Group Bsc 0.36 0.00 3,536,596 First Dubai Real Estate Deve 40.60 0.00 1,000 0.18 50,115 Kingdom Holding Co 8.64 0.82 92,203 Muscat Thread Mills Co 0.00 Esterad Investment Co B.S.C. 0.00 0.00 - Al Arabi Group Holding Co 65.50 5.65 1,400 0.08 - Saudi Arabian Amiantit Co 5.78 0.00 467,237 Muscat Insurance Co Saog 0.00 Eskan Bank Realty Income Tr 0.10 0.00 100,000 Mobile Telecommunications Co 476.00 1.93 7,764,364 0.80 - Al Jouf Agriculture Developm 22.60 -0.26 16,076 Muscat Gases Company Saog -1.46 Delmon Poultry Co 0.00 0.00 - Eff ect Real Estate Co 20.00 0.00 50 0.27 9,702 Saudi Industrial Development 8.35 0.60 65,745 Muscat Finance -1.12 Bmmi Bsc 0.72 0.00 5,000 Tamdeen Real Estate Co Ksc 0.00 0.00 - 0.09 14,000 Riyad Bank 16.56 4.15 908,919 Muscat City Desalination Co 0.00 Bbk Bsc 0.44 0.00 4,000 Al Mudon Intl Real Estate Co 29.00 1.75 52,211 0.13 11,000 The National Agriculture Dev 31.60 0.64 31,620 Majan Glass Company 0.00 Bahrain Telecom Co 0.25 0.00 55,000 Kuwait Cement Co Ksc 371.00 0.27 10,000 0.18 - Halwani Bros Co 46.80 0.54 9,809 Majan College 0.00 Bahrain National Holding 0.38 0.00 20,000 Sharjah Cement & Indus Devel 77.00 0.00 50,000 0.45 800 Arabian Pipes Co 10.20 -0.20 369,777 Hsbc Bank Oman 0.00 Bahrain Kuwait Insurance 0.00 0.00 - Kuwait Portland Cement Co 1,056.00 0.57 111,391 0.12 255,250 Eastern Province Cement Co 19.82 -0.40 25,220 Hotels Management Co Interna 0.00 Bahrain Islamic Bank 0.13 2.40 50,000 Educational Holding Group 310.00 0.00 24,002 1.25 - Al Gassim Investment Holding 10.64 -0.93 127,728 Gulf Stone 0.00 Bahrain Flour Mills Co 0.00 0.00 - Asiya Capital Investments Co 34.50 -0.29 42,974 0.12 - Filing & Packing Materials M 37.05 0.14 88,092 Gulf Mushroom Company 0.00 Bahrain Duty Free Complex 0.72 0.00 2,360 Kuwait Investment Co 123.00 1.65 746,753 0.31 - Saudi Cable Co 22.46 -0.62 232,231 Gulf Investments Services -1.06 Bahrain Commercial Facilitie 0.75 -0.66 10,000 Burgan Bank 252.00 0.00 1,993,930 0.09 1,743,416 Tihama Advertising & Public 40.05 0.25 125,841 Gulf Invest. Serv. Pref-Shar 0.00 Bahrain Cinema Co ` 0.00 1,700 Kuwait Projects Co Holdings 215.00 0.00 450,033 0.11 - Saudi Investment Bank/The 17.96 0.56 50,771 Gulf International Chemicals 0.00 Arab Banking Corp Bsc-$Us 0.40 0.00 90,000 Al Madina For Finance And In 25.00 0.00 54,910 0.20 5,400 Astra Industrial Group 17.14 -0.81 69,839 Gulf Hotels (Oman) Co Ltd 0.00 Aluminium Bahrain Bsc 0.62 -1.59 214,330 Kuwait Insurance Co 325.00 0.00 10,000 9.50 - Saudi Public Transport Co 14.22 0.28 541,305 Global Fin Investment 0.00 Albaraka Banking Group 0.28 0.00 120,000 Al Masaken Intl Real Estate 43.00 -13.13 2,000 0.09 - Taiba Holding Co 29.80 1.36 32,346 Galfar Engineering&Contract 0.00 Al-Salam Bank 0.10 0.00 50,000 Intl Financial Advisors 24.80 1.22 485,606 0.10 861,720 Saudi Industrial Export Co 214.20 2.49 41,101 Galfar Engineering -Prefer 0.00 Ahli United Bank B.S.C 0.70 0.00 5,895,786 First Investment Co Kscc 41.00 -4.65 2,301,112 0.39 - Saudi Real Estate Co 14.44 0.70 799,410 Financial Services Co. 0.00 #N/A Invalid Security 0.00 0.00 - Al Mal Investment Company 20.20 -4.72 1,610,399 0.18 - Saudia Dairy & Foodstuff Co 90.00 -0.33 37,761 Financial Corp/The 0.00 #N/A Invalid Security 0.00 0.00 - Bayan Investment Co Kscc 49.80 0.00 8,586 0.10 - National Shipping Co Of/The 32.65 2.03 1,796,591 Dhofar Tourism 0.00 #N/A Invalid Security 0.00 0.00 - Egypt Kuwait Holding Co Sae 346.00 0.00 20,000 0.49 - Methanol Chemicals Co 11.64 2.28 4,632,356 Dhofar Poultry 0.00 #N/A Invalid Security 0.00 0.00 - Coast Investment Development 31.40 1.95 288,295 0.18 - Chubb Arabia Cooperative Ins 19.00 -0.42 49,227 Dhofar Intl Development 0.00 #N/A Invalid Security 0.00 0.00 - Privatization Holding Compan 59.70 0.00 95,100 0.28 - Mobile Telecommunications Co 6.22 1.47 1,485,649 Dhofar Insurance 0.00 #N/A Invalid Security 0.00 0.00 - Injazzat Real State Company 83.00 0.00 23,035 0.14 - Saudi Arabian Coop Ins Co 12.10 0.00 214,447 Dhofar Fisheries & Food Indu 0.00 #N/A Invalid Security 0.00 0.00 - Kuwait Cable Vision Sak 11.00 0.00 43 1.28 - Axa Cooperative Insurance 22.00 -0.63 76,205 Dhofar Cattlefeed 0.00 #N/A Invalid Security 0.00 0.00 - Sanam Real Estate Co Kscc 49.00 0.00 5 0.17 - Alsorayai Group 12.16 -0.33 445,122 Dhofar Beverages Co 0.00 #N/A Invalid Security 0.00 0.00 - Ithmaar Holding Bsc 29.90 -1.64 2,968,723 0.26 - Bank Albilad 24.12 0.17 940,738 Construction Materials Ind 0.00 #N/A Invalid Security 0.00 0.00 - Aviation Lease And Finance C 326.00 -0.61 115,290 0.03 - Al-Hassan G.I. Shaker Co 8.41 0.24 342,620 Computer Stationery Inds 0.00 #N/A Invalid Security 0.00 0.00 - Arzan Financial Group For Fi 27.70 -0.72 51,990 0.26 - Wataniya Insurance Co 23.78 1.36 14,640 Bankmuscat Saog 2.53 #N/A Invalid Security 0.00 0.00 - Ajwan Gulf Real Estate Co 22.80 2.24 1,927,183 0.41 1,359,267 Abdullah Al Othaim Markets 70.00 3.24 181,067 Bank Sohar 0.79 #N/A Invalid Security 0.00 0.00 - Kuwait Business Town Real Es 50.00 0.00 173,513 0.13 95,000 Hail Cement 8.00 0.00 172,661 Bank Nizwa 1.18 Future Kid Entertainment And 96.00 -4.00 10,000 0.09 131,038 Saudi Re For Cooperative Rei 7.13 1.42 434,176 Bank Dhofar Saog 0.16 0.63 320,000 LATEST MARKET CLOSING FIGURES Gulf Times Wednesday, September 26, 2018 7 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 26,546.69 -15.36 Apple Inc 222.40 0.73 13,496,164 S&P 500 Index 2,918.63 -0.74 Microsoft Corp 114.00 -0.58 9,335,936 Nasdaq Composite Index 8,005.28 +12.03 Exxon Mobil Corp 86.51 -0.10 5,666,110 S&P/Tsx Composite Index 16,221.23 +13.91 Johnson & Johnson 139.28 -0.85 2,815,882 Mexico Bolsa Index 49,605.76 +188.54 General Electric Co 11.32 -3.58 67,895,669 Brazil Bovespa Stock Idx 78,050.00 +65.82 Jpmorgan Chase & Co 116.70 -0.02 4,263,899 Ftse 100 Index 7,507.56 +49.15 Procter & Gamble Co/The 83.35 -1.09 2,275,186 Cac 40 Index 5,479.10 +2.93 Walmart Inc 95.35 0.45 3,340,972 Dax Index 12,374.66 +23.84 Verizon Communications Inc 53.29 -0.47 4,795,770 Ibex 35 Tr 9,493.60 -19.20 Pfizer Inc 43.94 0.01 6,583,116 Nikkei 225 23,940.26 +70.33 Visa Inc-Class A Shares 149.32 0.14 2,220,848 Japan Topix 1,822.44 +18.42 Chevron Corp 123.27 0.53 2,476,690 Hang Seng Index 27,499.39 -454.19 Coca-Cola Co/The 45.65 -0.91 3,278,231 All Ordinaries Indx 6,299.07 -0.43 Intel Corp 45.99 -1.97 11,977,609 Nzx All Index 1,638.13 +1.70 Merck & Co. Inc. 70.72 -0.09 2,035,465 Bse Sensex 30 Index 36,652.06 +347.04 Cisco Systems Inc 48.64 0.41 7,932,072 Nse S&P Cnx Nifty Index 11,067.45 +100.05 Home Depot Inc 207.62 -0.18 2,052,509 Straits Times Index 3,236.08 +16.92 Intl Business Machines Corp 148.76 -0.85 1,761,863 Karachi All Share Index 29,856.42 -81.49 Walt Disney Co/The 113.83 0.94 5,282,411 Jakarta Composite Index 5,874.30 -7.92 Unitedhealth Group Inc 264.75 -0.98 1,065,607 3M Co 211.80 -0.80 664,913 Mcdonald’s Corp 166.97 2.24 2,733,958 Nike Inc -Cl B 84.86 0.70 3,833,113 TOKYO United Technologies Corp 140.31 -0.02 1,364,646 Boeing Co/The 368.63 0.17 1,265,193 Company Name Lt Price % Chg Volume Goldman Sachs Group Inc 232.70 -0.09 963,553 Sumitomo Realty & Developmen 4,108.00 0.51 1,816,000 American Express Co 109.82 -0.03 714,273 Sumitomo Metal Mining Co Ltd 4,054.00 0.35 2,114,300 Caterpillar Inc 153.98 -0.01 1,739,593 Orix Corp 1,895.50 -0.50 6,432,800 Travelers Cos Inc/The 131.55 -0.96 310,875 Daiwa Securities Group Inc 714.30 0.06 17,994,900 Softbank Group Corp 10,925.00 -1.09 4,891,000 Mizuho Financial Group Inc 204.20 0.39 182,665,600 Central Japan Railway Co 23,675.00 2.27 465,500 FTSE 100 Nitori Holdings Co Ltd 17,370.00 0.40 552,000 T&D Holdings Inc 1,889.00 1.61 3,091,800 Company Name Lt Price % Chg Volume Toyota Motor Corp 7,122.00 1.74 8,661,800 Hoya Corp 6,650.00 2.03 1,648,700 Wpp Plc 1,145.50 0.22 2,172,062 Sumitomo Mitsui Trust Holdin 4,770.00 -0.52 1,589,600 Worldpay Group Plc 0.00 0.00 - Japan Tobacco Inc 2,952.00 0.75 7,060,900 Wolseley Plc 0.00 0.00 - Osaka Gas Co Ltd 2,249.50 3.52 2,008,200 Wm Morrison Supermarkets 260.55 0.73 8,330,344 Sumitomo Electric Industries 1,825.50 0.91 2,522,400 Whitbread Plc 4,694.00 -0.45 484,358 Shares in BP climbed nearly 3% yesterday as higher oil prices translate into bumper profits and revenues for European oil giants. Ono Pharmaceutical Co Ltd 3,147.00 1.91 2,202,200 Vodafone Group Plc 168.74 -0.74 46,262,383 Ajinomoto Co Inc 1,935.00 0.99 1,860,600 United Utilities Group Plc 682.80 -0.84 2,114,576 Mitsui Fudosan Co Ltd 2,749.00 0.48 5,284,500 Unilever Plc 4,180.00 -0.52 2,540,443 Daikin Industries Ltd 15,340.00 1.05 1,149,300 Tui Ag-Di 1,392.00 0.72 1,293,095 Toray Industries Inc 885.80 1.48 6,816,300 Travis Perkins Plc 1,118.00 0.27 778,200 Bridgestone Corp 4,317.00 0.91 2,753,600 Tesco Plc 241.50 0.88 16,660,418 Sony Corp 6,658.00 3.32 8,995,600 Taylor Wimpey Plc 171.95 1.72 8,385,854 Astellas Pharma Inc 1,959.50 0.10 8,688,700 Europe markets rise as energy Standard Life Plc 0.00 0.00 - Jxtg Holdings Inc 855.30 -5.06 20,922,000 Standard Chartered Plc 635.30 -0.38 5,831,173 Nippon Steel & Sumitomo Meta 2,423.50 1.98 5,067,400 St James’s Place Plc 1,134.50 0.31 1,039,140 Suzuki Motor Corp 6,885.00 -3.11 3,413,000 Sse Plc 1,125.50 -0.40 2,748,122 Nippon Telegraph & Telephone 5,286.00 1.52 4,076,200 Smith & Nephew Plc 1,394.00 0.76 1,044,276 fi rms gain on soaring oil price Sompo Holdings Inc 5,011.00 3.66 1,863,000 Sky Plc 1,726.00 0.26 21,491,419 Daiwa House Industry Co Ltd 3,425.00 1.33 3,044,700 Shire Plc 4,515.50 0.44 1,643,866 Komatsu Ltd 3,467.00 -1.25 7,448,000 Severn Trent Plc 1,820.50 -0.57 780,181 seen over the past week.” pected, there are concerns about how West Japan Railway Co 7,978.00 1.88 767,500 AFP Schroders Plc 3,111.00 0.35 156,196 Brent oil rebounded close to a four- long the dispute will last after China Murata Manufacturing Co Ltd 17,885.00 2.08 1,134,600 London Sainsbury (J) Plc 317.40 0.32 2,607,303 Kansai Electric Power Co Inc 1,779.50 2.77 3,823,900 year peak above $82 per barrel, on wor- cancelled planned talks and said nego- Sage Group Plc/The 589.40 2.50 2,875,849 Denso Corp 5,872.00 1.00 1,643,000 ries over stretched global supplies due tiations “cannot be carried out under Abi Sab Group Holding Ltd 0.00 0.00 - Dai-Ichi Life Holdings Inc 2,419.50 -0.12 5,983,600 lobal stock markets edged high- to US sanctions on Iran. the threat of tariff s”. Rsa Insurance Group Plc 632.00 -0.09 2,362,059 Mazda Motor Corp 1,353.00 -0.44 5,331,000 Royal Mail Plc 477.40 -1.18 2,078,154 er yesterday as dealers tracked “Brent crude hit a level not seen Vice commerce minister Wang Mitsui & Co Ltd 2,027.50 0.82 8,441,600 Royal Dutch Shell Plc-B Shs 2,695.50 2.41 4,671,282 soaring oil prices, trade worries since late 2014, and that underlines Shouwen said yesterday it was impos- Kao Corp 8,819.00 2.01 2,345,700 G Royal Dutch Shell Plc-A Shs 2,653.50 2.27 3,813,548 and corporate newsfl ow on the eve of how bullish the sentiment is,” said sible to negotiate while Washington is Sekisui House Ltd 1,720.00 -0.92 4,105,900 Royal Bank Of Scotland Group 256.40 -0.93 24,741,140 Oriental Land Co Ltd 11,950.00 2.14 1,375,000 the Federal Reserve’s interest rate call. market analyst David Madden at CMC imposing tariff s that are like “holding a Rolls-Royce Holdings Plc 989.60 -0.78 2,842,061 Secom Co Ltd 9,196.00 -0.30 1,124,000 Wall Street along with Frankfurt and markets UK. knife to someone’s throat”. He accused Rio Tinto Plc 3,957.00 1.23 4,178,949 Tokio Marine Holdings Inc 5,653.00 1.33 2,514,300 Paris in Europe posted meagre gains, Energy fi rms enjoyed big gains on the US of abandoning a consensus Rexam Ltd 0.00 0.00 - Aeon Co Ltd 2,665.00 1.74 3,013,700 Relx Plc 1,568.50 0.10 6,191,399 with London climbed nearly 0.7% to this week’s surge in oil prices, after the struck in May. Fanuc Corp 22,495.00 -0.33 1,084,700 Reckitt Benckiser Group Plc 6,780.00 -0.80 1,041,949 7,507.56 points thanks to strong gains world’s top producers agreed to main- In London, shares in clothing retail Daito Trust Construct Co Ltd 15,190.00 1.67 442,300 Randgold Resources Ltd 5,460.00 4.60 1,636,822 by energy shares. tain output despite pressure from US chain Next soared almost 10%, despite Otsuka Holdings Co Ltd 5,514.00 0.44 1,134,200 Prudential Plc 1,801.00 0.06 2,881,536 Asian bourses mostly rose in muted President Donald Trump. a warning over the risks of port delays Resona Holdings Inc 658.00 1.00 14,475,800 Provident Financial Plc 627.00 -0.73 218,044 Asahi Kasei Corp 1,682.50 0.84 4,546,200 deals with Hong Kong and Seoul re- Higher oil prices translate into and increased tariff s from a possible Persimmon Plc 2,381.00 0.93 671,434 Kirin Holdings Co Ltd 2,976.50 1.93 3,570,800 maining shut for public holidays. bumper profi ts and revenues for Eu- no-deal Brexit. They closed with a gain Pearson Plc 872.00 -1.80 5,528,324 Mitsubishi Ufj Financial Gro 727.70 0.78 75,965,000 “Investors continue to keep a weath- ropean oil giants like BP, Royal Dutch of 7.8%. Paddy Power Betfair Plc 6,770.00 -0.15 145,051 Marubeni Corp 1,025.50 1.13 8,237,800 Old Mutual Plc 0.00 0.00 - er eye on the trade war situation,” said Shell and Total. The group also insisted that the di- Mitsubishi Chemical Holdings 1,041.50 2.71 7,598,600 Next Plc 5,518.00 7.69 1,037,477 IG analyst Chris Beauchamp. Shares in BP climbed nearly 3%, while rect risks of a no-deal scenario did not Fast Retailing Co Ltd 55,380.00 -2.50 835,200 National Grid Plc 764.70 -1.38 9,539,332 “But even without any further those in Shell rose 2.4% in London. In “post a material threat to the ongoing Ms&Ad Insurance Group Holdin 3,827.00 1.65 2,543,300 Mondi Plc 2,124.00 -0.19 1,268,558 meaningful headlines on this front the Paris, shares in Total added 1.3%. operations and profi tability of Next’s Kubota Corp 1,873.50 -0.37 3,570,400 Merlin Entertainment 392.50 1.11 1,207,389 Seven & I Holdings Co Ltd 5,050.00 -0.43 2,641,300 upcoming Fed meeting ... means that Investors remain cautious after the business”. Mediclinic International Plc 441.50 -2.21 1,103,787 Inpex Corp 1,403.50 0.90 4,978,700 most are content to await develop- latest tit-for-tat tariff s in the US-Chi- Investors focused on positive news Marks & Spencer Group Plc 286.00 0.56 6,413,652 Sumitomo Mitsui Financial Gr 4,706.00 2.98 8,391,300 ments rather than rushing in to try and na trade row. that Next upped its full-year profi ts London Stock Exchange Group 4,584.00 -1.69 1,089,809 Ana Holdings Inc 4,055.00 1.83 4,192,100 Lloyds Banking Group Plc 60.90 -1.23 125,638,896 join in the general bounce in equities While the levies had been widely ex- outlook after a bright fi rst half. Mitsubishi Electric Corp 1,553.00 -0.67 6,319,500 Legal & General Group Plc 263.20 0.04 12,567,299 Honda Motor Co Ltd 3,516.00 0.72 6,214,500 Land Securities Group Plc 883.00 -0.67 713,083 Tokyo Gas Co Ltd 2,786.00 1.03 2,525,500 Kingfisher Plc 255.00 -0.16 7,664,869 HONG KONG HONG KONG Tokyo Electron Ltd 16,315.00 2.42 2,593,500 Johnson Matthey Plc 3,636.00 -0.41 370,914 Panasonic Corp 1,368.50 0.18 10,049,500 Itv Plc 156.60 3.33 50,393,502 Fujitsu Ltd 826.20 2.85 13,574,000 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intu Properties Plc 153.00 -2.36 2,708,953 East Japan Railway Co 10,795.00 2.42 1,198,600 Intl Consolidated Airline-Di 659.40 -3.96 10,416,569 Aluminum Corp Of China Ltd-H 3.43 -2.00 11,305,224 Hong Kong & China Gas 15.54 -0.26 10,684,298 Itochu Corp 2,150.50 0.56 6,225,500 Intertek Group Plc 4,959.00 3.40 473,604 Bank Of East Asia Ltd 29.00 -2.85 1,149,593 Hong Kong Exchanges & Clear 224.00 -2.18 3,289,511 Fujifilm Holdings Corp 5,134.00 1.54 1,779,000 Intercontinental Hotels Grou 4,695.00 -0.09 283,393 Bank Of China Ltd-H 3.46 -1.70 239,296,460 Hsbc Holdings Plc 68.95 -1.15 12,488,220 Yamato Holdings Co Ltd 3,424.00 4.39 2,381,500 Inmarsat Plc 497.60 -0.28 1,552,502 Bank Of Communications Co-H 5.75 -2.04 15,023,045 Hutchison Whampoa Ltd 0.00 0.00 - Chubu Electric Power Co Inc 1,726.00 1.26 1,841,300 Informa Plc 749.40 0.35 2,741,727 Belle International Holdings 0.00 0.00 - Ind & Comm Bk Of China-H 5.64 -1.74 188,032,207 Mitsubishi Estate Co Ltd 1,936.50 -0.05 5,370,300 Imperial Brands Plc 2,632.00 0.86 1,809,947 Boc Hong Kong Holdings Ltd 36.40 -2.15 8,475,478 Li & Fung Ltd 1.82 -1.62 34,304,084 Mitsubishi Heavy Industries 4,345.00 0.67 1,671,200 Hsbc Holdings Plc 675.70 -0.04 13,002,964 Cathay Pacific Airways 11.32 -0.88 5,261,672 Mtr Corp 40.80 -1.09 3,087,555 Shiseido Co Ltd 8,336.00 4.13 3,814,100 Hargreaves Lansdown Plc 2,267.00 0.27 696,103 Ck Hutchison Holdings Ltd 89.90 -0.77 2,308,436 New World Development 10.74 -2.01 16,269,947 Shionogi & Co Ltd 7,240.00 1.10 1,625,600 Hammerson Plc 462.70 -0.15 1,915,975 China Coal Energy Co-H 3.22 -1.83 2,903,000 Petrochina Co Ltd-H 5.98 -1.97 117,041,042 Recruit Holdings Co Ltd 3,793.00 2.93 6,750,100 Glencore Plc 341.50 3.48 53,058,423 China Construction Bank-H 6.78 -1.74 231,651,754 Ping An Insurance Group Co-H 78.45 -0.57 34,078,319 Japan Airlines Co Ltd 4,118.00 2.29 6,055,800 Glaxosmithkline Plc 1,535.20 0.81 5,569,658 China Life Insurance Co-H 17.56 -2.12 30,127,160 Power Assets Holdings Ltd 55.00 -0.45 2,655,077 Nitto Denko Corp 8,590.00 1.31 1,088,000 Gkn Ltd 0.00 0.00 - China Merchants Port Holding 14.84 -0.54 2,291,223 Sino Land Co 13.62 -1.45 4,559,536 Kddi Corp 3,143.00 0.19 6,054,000 Fresnillo Plc 861.00 0.56 1,365,385 China Mobile Ltd 75.50 -0.98 10,378,020 Sun Hung Kai Properties 116.00 -0.77 4,330,149 Rakuten Inc 873.00 1.67 10,233,100 Experian Plc 1,946.50 0.10 1,596,870 China Overseas Land & Invest 25.30 -3.25 18,639,223 Swire Pacific Ltd - Cl A 86.25 -2.32 739,563 Kyocera Corp 6,805.00 -1.20 1,963,600 Easyjet Plc 1,333.50 -3.44 2,957,429 China Petroleum & Chemical-H 7.56 -1.18 94,494,072 Tencent Holdings Ltd 327.80 -1.97 18,537,726 Nissan Motor Co Ltd 1,100.00 -0.50 32,277,900 Dixons Carphone Plc 168.50 -1.03 2,827,545 China Resources Beer Holding 31.90 -2.00 6,673,500 Wharf Holdings Ltd 21.90 -1.79 1,368,388 Direct Line Insurance Group 327.30 -0.18 4,742,830 China Resources Land Ltd 27.95 -5.25 7,893,336 China Resources Power Holdin 13.76 -2.82 3,753,590 Diageo Plc 2,680.00 -0.11 2,529,689 SENSEX Dcc Plc 7,325.00 -0.88 167,676 China Shenhua Energy Co-H 17.98 -2.81 12,319,815 GCC INDICES Crh Plc 2,522.00 0.12 954,625 China Unicom Hong Kong Ltd 9.15 -4.09 41,160,208 Compass Group Plc 1,669.00 2.17 3,218,858 Company Name Lt Price % Chg Volume Citic Ltd 11.12 -1.59 5,642,615 Indices Lt Price Change Coca-Cola Hbc Ag-Di 2,585.00 0.74 394,305 Clp Holdings Ltd 91.65 -0.76 2,471,540 Doha Securities Market Zee Entertainment Enterprise 449.40 0.30 2,673,557 9,713.42 -18.23 Centrica Plc 147.35 -0.14 16,603,401 Cnooc Ltd 14.22 0.57 61,359,216 Saudi Tadawul Yes Bank Ltd 219.70 -2.96 118,039,085 7,905.27 +136.96 Carnival Plc 4,935.00 -0.26 693,399 Cosco Shipping Ports Ltd 8.00 3.90 5,631,494 Kuwait Stocks Exchange Wipro Ltd 328.30 -1.32 4,179,606 #N/A N/A #N/A N/A Capita Plc 139.45 -0.85 5,565,417 Esprit Holdings Ltd 1.89 1.07 8,125,554 Bahrain Stock Exchage Vedanta Ltd 230.40 0.22 17,644,292 1,355.34 -0.79 Burberry Group Plc 1,995.50 -0.77 1,464,178 Fih Mobile Ltd 1.02 -0.97 1,515,000 Oman Stock Market Ultratech Cement Ltd 4,028.70 1.35 256,463 4,485.43 +32.16 Bunzl Plc 2,404.00 1.01 596,400 Hang Lung Properties Ltd 15.14 -0.92 2,580,913 Abudhabi Stock Market Tech Mahindra Ltd 758.75 0.97 2,951,809 4,891.79 +3.00 Bt Group Plc 225.50 -0.57 13,937,128 Hang Seng Bank Ltd 206.60 -1.62 732,960 Dubai Financial Market Tata Steel Ltd 601.00 -1.10 11,861,810 2,754.04 +0.75 British Land Co Plc 617.00 -0.74 4,022,082 Henderson Land Development 39.60 -1.25 2,574,533 Tata Power Co Ltd 70.30 1.74 7,103,297 British American Tobacco Plc 3,540.00 -0.11 3,755,634 Tata Motors Ltd 240.80 0.25 10,063,744 Bp Plc 586.70 2.91 36,487,792 Tata Consultancy Svcs Ltd 2,183.20 -0.69 2,996,876 Bhp Billiton Plc 1,695.80 1.47 10,272,229 Sun Pharmaceutical Indus 641.10 2.74 7,646,104 Berkeley Group Holdings/The 3,658.00 0.55 298,985 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 270.90 2.48 30,120,420 Barratt Developments Plc 562.20 0.75 2,374,456 Reliance Industries Ltd 1,230.60 -0.12 10,111,804 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Barclays Plc 175.12 -0.49 47,994,222 Punjab National Bank 66.95 -3.25 63,820,725 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 626.40 0.19 7,998,013 Power Grid Corp Of India Ltd 192.60 -2.53 6,204,684 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 719.00 -0.42 1,132,155 Oil & Natural Gas Corp Ltd 182.30 0.94 8,660,303 this data.” Aviva Plc 491.10 -0.04 6,493,651 Ntpc Ltd 170.00 1.25 5,608,268 Astrazeneca Plc 5,793.00 2.49 1,775,217 Maruti Suzuki India Ltd 7,999.45 2.65 1,251,199 Associated British Foods Plc 2,284.00 1.15 902,062 Mahindra & Mahindra Ltd 893.00 -0.34 4,449,040 Ashtead Group Plc 2,366.00 1.15 1,047,580 Lupin Ltd 882.55 2.53 2,686,693 CURRENCIES Arm Holdings Plc 0.00 0.00 - Larsen & Toubro Ltd 1,319.05 0.05 3,086,848 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Antofagasta Plc 874.80 0.32 2,011,094 DINAR DINAR Kotak Mahindra Bank Ltd 1,183.35 3.02 3,951,841 Anglo American Plc 1,752.80 0.96 4,727,859 Itc Ltd 301.15 1.07 14,211,900 Admiral Group Plc 2,071.00 1.37 807,279 Infosys Ltd 726.20 1.11 9,961,780 3I Group Plc 956.00 0.27 1,548,886 Indusind Bank Ltd 1,696.75 1.35 4,634,892 #N/A 0.00 0.00 - Vodafone Idea Ltd 40.50 -3.91 27,055,630 Icici Bank Ltd 311.10 0.76 32,233,968 TOKYO Housing Development Finance 1,773.35 3.18 7,612,197 Hindustan Unilever Ltd 1,630.85 2.54 1,362,790 Hindalco Industries Ltd 243.05 1.31 8,213,355 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 3,112.60 0.08 477,445 Hitachi Ltd 777.80 0.78 16,923,000 Hdfc Bank Limited 1,952.40 1.39 4,325,794 Takeda Pharmaceutical Co Ltd 4,757.00 0.93 8,404,400 Hcl Technologies Ltd 1,116.35 1.83 2,966,905 Jfe Holdings Inc 2,629.50 -0.08 4,009,100 Grasim Industries Ltd 1,039.10 1.93 732,005 Sumitomo Corp 1,947.00 1.27 6,863,900 Gail India Ltd 369.90 -2.89 3,527,939 Canon Inc 3,584.00 0.67 4,357,900 Dr. Reddy’s Laboratories 2,611.70 2.26 817,851 Nintendo Co Ltd 41,600.00 -0.29 1,931,200 Coal India Ltd 275.25 -2.10 3,763,148 Eisai Co Ltd 10,645.00 3.65 1,308,300 Cipla Ltd 661.75 2.50 2,415,701 Isuzu Motors Ltd 1,802.50 -0.14 2,969,500 Cairn India Ltd 0.00 0.00 - Unicharm Corp 3,720.00 0.98 2,408,600 Bosch Ltd 20,151.70 2.26 9,633 Shin-Etsu Chemical Co Ltd 10,015.00 2.76 2,111,500 Bharti Airtel Ltd 360.50 1.21 6,419,548 Smc Corp 36,820.00 -1.50 320,200 Bharat Petroleum Corp Ltd 364.20 -0.87 4,372,782 Mitsubishi Corp 3,594.00 0.98 6,587,500 Bharat Heavy Electricals 71.65 1.56 7,972,211 Asahi Group Holdings Ltd 4,997.00 0.26 2,046,700 Bank Of Baroda 109.45 1.62 42,369,223 Keyence Corp 64,040.00 0.64 361,800 Bajaj Auto Ltd 2,788.70 1.07 368,125 Nidec Corp 16,500.00 0.00 894,700 Axis Bank Ltd 614.35 2.85 18,617,063 Nomura Holdings Inc 553.80 -0.43 23,258,700 Asian Paints Ltd 1,289.90 1.41 1,335,633 Daiichi Sankyo Co Ltd 4,790.00 -0.83 2,676,500 Ambuja Cements Ltd 225.65 3.20 1,906,722 Subaru Corp 3,400.00 0.89 4,612,700 Adani Ports And Special Econ 337.95 -2.28 5,469,643 Ntt Docomo Inc 3,095.00 2.08 5,321,800 Acc Ltd 1,563.80 2.38 743,766 Gulf Times 12 Wednesday, September 26, 2018 BUSINESS

Murdoch’s double payday lessens sting of Sky defeat to Comcast

Bloomberg the output of the incumbents as London a “parading of the prejudices and Comcast crosses interests of the like-minded people” who made up Britain’s elite. 30% Sky threshold In Rupert Murdoch’s six decades of It was a risky venture that made heavy media deal-making, UK broadcaster Sky losses in its first year and was forced Plc stands out as the one that got away. to merge with rival British Satellite Reuters The octogenarian may still have the last Broadcasting in 1990, taking the name London laugh. BSkyB. While Murdoch’s 21st Century Fox Inc Rivals were quick to condemn the lost out to Comcast Corp in a weekend quality of its output and declared it a Comcast, the victor in the $40bn auction of the UK pay-TV company he non-starter. But Sky became a major auction for Sky, said yesterday it launched almost three decades ago, platform for Hollywood films and, most had bought more than 30% of the the global media magnate now gets a importantly, British top-flight soccer. European pay-TV group’s shares in the double payday. Broadcast rights auctions channelled market. Murdoch was already in line to receive more money into the Premier League, Crossing the 30% threshold means billions of dollars from Walt Disney improving the quality of games and that the US cable company must Co’s $71bn stock and cash off er for drawing more viewers in a virtuous off er to buy out other investors at the most of Fox’s assets, including a 39% circle that sent Sky profits soaring. formal off er price of 17.28 pounds per stake in Sky. Now Comcast’s knockout It listed in 1994, with Murdoch’s share, valuing Sky at around £30.6bn $39bn bid has put a rocket under Sky company — then News Corp — reducing ($40.2bn). shares, inflating their value for Disney its stake to 39%. That knockout Comcast bid beat a and, ultimately, for Murdoch once he James Murdoch, Rupert’s youngest £15.67 off er from Rupert Murdoch’s becomes a major Disney shareholder. son, became CEO of BSkyB in 2003, Twenty-First Century Fox in a rare It looks like the perfect outcome for the a position he held until 2007. He then auction held over the weekend. 87-year-old, who set up his first news became chairman from 2007 to 2012. Shares in Comcast, owner of Universal company in Australia in 1952 and sealed That stint coincided with News Corp’s Pictures and NBC network, fell on Mon- the Disney deal in July partly as a way first bid in 2010 for the 61% of Sky it day on concerns about how much the to step back from his businesses and didn’t already own. company had paid to clinch the deal. cement his legacy. Murdoch is already Murdoch raised his profile with London’s Fox holds a 39% stake in Sky, stem- the world’s 60th wealthiest person with business and political establishment ming from Murdoch’s role in its crea- a fortune valued at $17.2bn. by taking over the Times of London tion nearly three decades ago, which “Murdoch gets the last laugh from and Sunday Times newspapers in the it is selling to Walt Disney as part of a a financial perspective,” said Paul 1980s. News Corp, which was spun off separate deal. Sweeney, an analyst at Bloomberg from Fox in 2013, continues to own UK Neither Fox nor Disney have said what Intelligence. “He’s sold 21st Century Fox papers, including the Times and the Sun, they intend to do with the stake. at a really big price and now he’s selling whose tabloid paper and website are Comcast’s winning bid quickly Sky for a really high price.” Murdoch was already in line to receive billions of dollars from Walt Disney Co’s $71bn stock and cash off er for most of Britain’s most-read daily news brand. received the backing of Sky independ- Disney shares rose 2.2% to $112.77 in Fox’s assets, including a 39% stake in Sky. Now Comcast’s knockout $39bn bid has put a rocket under Sky shares, inflating That helps ensure that Murdoch remains ent directors on Saturday. New York on Monday. their value for Disney and, ultimately, for Murdoch once he becomes a major Disney shareholder. a key figure in the nation’s media. He’s They said Comcast’s off er was Because the Sky and Fox deals are still also splitting off Fox News, the Fox “materially superior” to Fox’s, and pending, it’s hard to say exactly how in 1989. The first was scuppered by Fox’s Sky stake is now worth more than wars.” Fox, based in New York, declined broadcast station and sports networks they urged shareholders to accept it much Murdoch will make from the a phone-hacking scandal at his UK double what it was before Murdoch’s to comment. into a company currently referred to as immediately. flurry of deal-making. Fox also hasn’t newspapers and it took him half a latest takeover eff ort. Sky got its start when Murdoch set up New Fox. Comcast said it was seeking to make said yet whether it will tender its 39% decade to try again. “Rupert is the big winner in all this,” Sky Television, initially a four-channel “Rupert may end up being the smartest further market purchases of Sky stake to Comcast. When he did in December 2016, Fox was said Rich Greenfield, an analyst at BTIG off ering including sport and movies mogul in the room,” said Sweeney. “He shares at a price of 17.28 per share. Comcast’s Sky bid ended Murdoch’s the only apparent suitor. Then when LLC. “Sky was near and dear to Rupert, delivered via satellite. In a speech in sells the majority of his company at Sky’s shares were trading at 17.27 second eff ort to take full control of the Comcast entered the fray in February but beyond that, it’s hard to see him as Edinburgh that year, Murdoch took on peak multiples and gets to keep the pounds in early deals yesterday. satellite television company he started this year, it sent Sky shares soaring. a loser when he created two bidding the UK television industry, describing assets he wants.” Gulf Times Wednesday, September 26, 2018 13 BUSINESS

US-China trade war China says US putting ‘knife to poses oil demand shock in its neck’, trade talks unlikely 2019: BP

Reuters Beijing Reuters Singapore senior Chinese offi cial said yes- terday it is diffi cult to proceed US sanctions on Iran will tighten Awith trade talks with the United global oil supplies sharply until States while Washington is putting “a the end of the year, but a threat knife to China’s neck”, a day after both to world demand looms in 2019 sides heaped fresh tariff s on each other’s from the US-China trade war, the goods. head of BP’s oil trading in Asia When the talks can restart would de- said. pend on the “will” of the United States, “We’re moving into the tightest Vice Commerce Minister Wang Shou- part of 2018... the re-imposition wen said at a news conference in Beijing. of Iran sanctions is the main US tariff s on $200bn worth of Chinese factor as the market will tighten goods and retaliatory taxes by Beijing substantially from now to year- on $60bn worth of US products includ- end,” Janet Kong, chief executive ing liquefi ed natural gas (LNG) kicked in of Integrated Supply and Trading on Monday, unnerving global fi nancial Eastern Hemisphere at BP told markets. Reuters. Saudi Arabia and Russia “Now that the United States has won’t add significantly more oil adopted such a huge trade restriction to the market because of a lack of measure... how can the negotiations capacity, a top Iranian off icial said proceed? It’s not an equal negotiation,” on Monday, predicting prices will Wang said, stressing the United States probably rise further. has abandoned its mutual understand- Sanctions on Venezuela are ing with China. also exacerbating a production The Chinese government’s top dip- decline there, while outages in lomat also told business people at a Nigeria and Libya have further meeting in New York that talks could crimped supplies, Kong said, with not take place against the backdrop Brent supported at above $80 a of “threats and pressure”, the Foreign barrel. “The market fundamen- Ministry said. tals in the short term look very Certain forces in the United States bullish and positive due to supply have been making groundless criticisms shocks, but over time, when sup- against China about trade and security ply catches up and the shock to issues, which has poisoned the atmos- demand becomes more evident, phere for Sino-US ties and is highly ir- the market will go through an- responsible, State Councillor Wang Yi other round of re-balancing next was quoted as saying, without naming year,” she said. anyone. The world’s two largest “If this continues, it will destroy in an economies, China and the United instant the gains of the last four decades States, have imposed tariff s of China-US relations,” Wang told mem- Shipping containers are seen at a port in Shanghai. The Chinese government’s top diplomat told business people at a meeting in New York that trade talks between China on each other’s imports in an bers of the US-China Business Coun- and the US could not take place against the backdrop of “threats and pressure”. escalating trade war that has cil and National Committee on United rattled global markets and raised States-China Relations. in coming weeks have been shelved after creasingly likely that both sides will not said the newspaper, which is published date their needs and reduce their tax concerns of a slowdown in world US representatives there included Beijing reportedly decided late last week resume negotiations for some time, at by the ruling Communist Party’s Peo- burdens. economies and commodities Blackstone Group LP co-founder and not to send a delegation to Washington. least until there is a noticeable shift in ple’s Daily. However, the trade war risks disrupt- demand next year. chief executive Stephen Schwarzman While Vice Commerce Minister Wang the political mood on either side.” China does not know why the United ing global supply chains and throwing “Going into 2019, I worry about and Mastercard Inc chief executive Ajay said he still hopes “there is a way out” if US exporters including LNG suppliers States changed its mind after reaching them into chaos, Luo said. the impact of the US-China trade Banga, the National Committee on Unit- both sides treat each other with sinceri- would “certainly” be hurt, but Beijing’s an agreement with China on trade ear- Senior offi cials also once again reject- war, manifesting itself slowly,” ed States-China Relations said on its ty, analysts say neither side looks to be in retaliation would provide opportunities lier, Wang said. ed Washington’s accusations that China Kong said. “The trade war impact website. the mood to compromise in the increas- to other LNG-exporting countries, Vice He was apparently referring to talks in forces foreign companies to share their has not really shown up in the China also accused the United States ingly bitter dispute, raising the risk of a Commerce Minister Wang said, adding May, when it appeared that the two sides technology with Chinese joint-venture data anywhere, but it will show of engaging in “trade bullyism”, and lengthy battle that could chill the global that Australia is an important source of had sorted out a framework before the partners, adding that Beijing has passed up gradually over time. So the said Washington was intimidating other economy by discouraging business in- the fuel for China. White House backed away. a rule forbidding government entities supply shock is very sharp and countries to submit to its will, according vestment and disrupting trade. “China is a big and powerful nation, so Luo Wen, a vice minister at the Min- from such illegal behaviour. prompt, while the impact from to a white paper on the dispute published “The sharp criticism (from Beijing whether it is a confrontation with China istry of Industry and Information, told “The government has not forced this, trade war is boiling over slowly.” by China’s State Council, or cabinet, on on Monday) suggests that China might economically or militarily, it would come a news conference that the government and a lot of JVs are actually performing Analysts and the International Monday. prefer to wait out the current US ad- at a huge price,” the state-backed Global is aware that some foreign companies very well in China,” Wang said, giving an Monetary Fund have forecast a Several rounds of Sino-US talks in re- ministration, rather than embarking on Times said in an editorial yesterday. are considering relocating out of China example of American car giant Ford. 0.5% to 1% drop in world gross cent months have appeared to produce potentially futile negotiations,” Mizuho “As such, it is an attractive prospect as the trade row threatens to heighten “Ford produces more cars and makes domestic product growth next no breakthroughs, and fresh mid-level Bank said in a note to clients. for other countries including the United their risks and costs. But he said the more profi ts in China through its JV than year, she said. negotiations which had been expected “Given these developments, it is in- States to coexist with China peacefully,” government is working to accommo- it does in the United States,” he said.

Indonesia shows interest in investing in Pakistan

Internews bers that 20 more goods had been zero- Peshawar rated following the FTA, adding the volume of trade would further increase under the Pakistan banks sign MoU to FTA. The embassy of Indonesia and Sarhad The ambassador praised the SCCI for its Chamber of Commerce and Industry (SCCI) successful initiative for industrialisation and have agreed to boost bilateral trade volume, promoting trade and assured the chamber capitalise on investment opportunities and that Indonesia would extend all-out support boost renewable energy use remove the barricades hampering commerce for economic reforms, trade and diff erent between the two countries. sectors. Internews standing has been facilitated by the Sun King range of transformation- using sustainable, clean energy to Indonesia Ambassador to Pakistan Iwan Earlier, Shinwari apprised the Indonesian Islamabad IFC under their Lighting Pakistan al solar products for under-served power Pakistan. Our endeavour will Suyudhie Amri and SCCI president Zahid ambassador of investment opportunities in Programme. customers and address energy is- be to provide more sophisticated Shinwari also agreed on exchange of business K-P and said Indonesian businessmen could The IFC introduced their Asso- sues of masses living in far-flung products across villages through delegations and investment in oil, gas and take benefit of fresh opportunities, specifically he Khushhali Microfi nance ciate Greenlight Planet and their areas with a particular focus on continuous research and innova- hydroelectric power generation in Pakistan the planned construction of 50,000 houses Bank, Pakistan’s largest mi- country distributor to the Khushhali off-grid areas. tion based on consumer insights and in general and Khyber-Pakhtunkhwa (K-P) in recently announced by Prime Minister Imran Tcrofi nance bank, has part- Bank to facilitate fi nancing options This move will also positively customer engagement initiatives.” particular. Khan. nered with the Greenlight Planet, a for quality verifi ed solar lighting so- impact the livelihoods of people in Given the energy crisis in the During a meeting between Indonesian “What we have come to know is that global leader in solar home energy lutions at a consumer level. these areas.” country, this strategic alliance en- diplomats and SCCI members in the provin- Indonesian diplomats were really interested in products. Lighting Pakistan Programme “We are looking forward to ex- visages to promote the use of renew- cial capital, Amri said, “Indonesia will extend oil and gas production besides tourism since The partnership is meant to will also provide support in con- pand Greenlight Planet’s footprint able energy by facilitating the bank’s all-out support and it is my priority to promote Jakarta has huge reserves of natural resources help meet the country’s energy sumer awareness campaigns, across Sindh and enable aff ordable, customers in accessing world class trade between the two countries.” and has a huge income from the tourism consumption needs in a sustain- training programmes and market clean and reliable Sun King branded renewable energy products on easy He said the volume of trade between Paki- industry,” Shinwari said. able manner, as the KMBL will off er intelligence. off -grid solar solutions for our cus- fi nancing services. stan and Indonesia had increased following a Shinwari stated that Amri sought details of Greenlight Planet’s Sun King range Talking about the accord, presi- tomers,” he further added. The KMBL and Greenlight Planet free trade agreement (FTA) between the two opportunities in diff erent sectors, adding that of Solar Home Systems and Lighting dent KMBL, Ghalib Nishtar said, Tariq Zaman, Global Partner- will also initiate a social awareness countries. all the details were provided and urged the Solutions on easy instalments to its “Khushhali Microfinance Bank ships manager, Greenlight Planet campaign to educate the users about The Indonesian envoy told SCCI mem- government to facilitate the investors. customers. is collaborating with Greenlight said on the occasion, “This partner- benefi ts of shifting to renewable en- The memorandum of under- Planet to facilitate the provision of ship marks a signifi cant step towards ergy sources. Australia govt blessed with budget windfall as election looms

Reuters Treasurer Josh Frydenberg said a combina- attainable in the current fi scal year, but the Sydney tion of higher tax receipts and restrained government is still projecting a defi cit of welfare spending had shrunk the budget A$14.5bn. shortfall to A$10.1bn in the year to end June. “This (defi cit) should be lower based on surging tax-take has blessed Aus- That was down from a projection of the economic performance, but will be de- tralia’s centre-right government with A$18.1bn made as recently as May and, at pendent on policy changes,” said Belinda Al- A the smallest budget defi cit in a dec- 0.6% of gross domestic product (GDP), the len, a senior economist at Commonwealth ade and the means to fund a host of voter- smallest since the global fi nancial crisis. Bank of Australia. friendly spending promises as it struggles in The swing owed much to record-high “With a better budget bottom line, new the polls. company profi ts, which helped boost tax spending measures are expected to be an- The Liberal National Coalition led by receipts by A$13.4bn, while faster growth nounced in the lead up to the Federal Elec- Prime Minster Scott Morrison has to face the in the economy and jobs restrained welfare tion due around May,” she said. nation by May next year and trails badly after payments. Morrison has already decided to scrap a dumping former leader Malcolm Turnbull in Despite the marked improvement the rise in the retirement age to 70, from the a bout of internecine party warfare a month government stuck with its forecast that the current 67, and is widely expected to accel- ago. budget would not return to surplus until erate planned tax cuts for small business. Swelling coff ers off er the chance to throw 2019/20, with Frydenberg dodging question The progress on the defi cit had been money at some long-standing political on why it would not happen sooner. enough to earn a nod from S&P Global Rat- problems, such as a A$4.6bn ($3.33bn) in- “We absolutely continue to have a very ings, which last week lifted the outlook on Australia’s Treasurer Josh Frydenberg at a press conference in Sydney. Frydenberg said a combination jection into Catholic and private schools an- disciplined approach when it comes to our Australia’s triple-A rating to stable and thus of higher tax receipts and restrained welfare spending had shrunk the budget shortfall to A$10.1bn in the nounced just last week. Budget management,” he told reporters. removed any risk of a politically damaging year to end June. Addressing a news conference yesterday Economists had thought a surplus was downgrade. Gulf Times 14 Wednesday, September 26, 2018 BUSINESS

Oyo founder raises $1bn RBI urged to take steps to ease to fund overseas liquidity, tackle credit crunch expansion Reuters New Delhi/Mumbai Bloomberg Bengaluru ndia’s fi nance ministry wants the central bank to consider more steps yo Hotels, an Indian star- Ito improve liquidity in the system, tup for booking reliable including reducing the amount of funds Orooms in the country’s banks must set aside with it, a senior chaotic lodging market, is raising ministry offi cial said yesterday, amid $1bn to fund expansion into China a bubbling credit crunch in the Indian and other global regions. shadow banking industry. Existing investors including The Reserve Bank of India (RBI) could SoftBank Vision Fund, Sequoia also explore buying more bonds from Capital and Lightspeed Venture the open market and open a special Partners have put in $800mn, window for mutual funds to inject li- with commitments for another quidity, the offi cial told reporters. $200mn, the company said yes- Prime Minister Narendra Modi’s terday. government faces a new challenge that About $600mn of the total will could derail growth at a time when be plowed into China where Oyo surging fuel costs and a slumping rupee began operations only 10 months are buff eting the world’s fastest grow- ago. ing major economy. The funding values the startup The RBI did not immediately respond at $5bn, according to a person fa- to a request for comment on the pro- miliar with the matter who asked posed ideas. not to be identifi ed because the Late on Monday the RBI said it would matter is private. buy Rs100bn ($1.38bn) of government Ritesh Agarwal, a 24-year-old bonds via an open market operation, in college dropout, founded Oyo fi ve a move to ease liquidity. years after travelling around India The fi nance ministry, RBI and In- on a shoestring budget. dia’s markets regulator have this week He discovered wildly unpre- all said they all are closely monitoring dictable standards for hotels and the liquidity crunch that has hit non- guest houses, and decided to start banking fi nancial companies (NBFC), The Reserve Bank of India headquarters in Mumbai. Late on Monday the RBI said it would buy Rs100bn ($1.38bn) of government bonds via an open market operation, in an online service to bring more re- and they stand ready to intervene. a move to ease liquidity. liability to the travel experience. Investors have been unnerved by In the past two years, Oyo has credit concerns that have engulfed one at a press event yesterday said the gov- terday, LIC chairman VK Sharma said The benchmark 10-year bond yield Gupta in a note to clients on Monday, expanded beyond India into Chi- of the biggest NBFC names in India – ernment was watching the IL&FS situ- all options, including increasing LIC’s rose one basis point to 8.13% on the day. adding weaker NBFCs could see net in- na, Malaysia, Nepal and Britain. Infrastructure Leasing & Financial Serv- ation closely. stake in IL&FS, are open. The partially convertible rupee, terest margins squeezed given the rise in “With this additional fund- ices (IL&FS) – which has this month “As far as the government is con- The reassurances from Sharma lifted which is Asia’s worst performing cur- funding cost on the back of tightening ing, we plan to rapidly scale our defaulted on a series of its coupon pay- cerned, we are closely in touch with the shares in two of IL&FS’s biggest listed- rency so far this year, also weakened liquidity and widening credit spreads. business in these countries, while ments and seen its debt downgraded by situation and monitoring the situation,” units IL&FS Transportation Networks further on the day to close at 72.7050, Credit Suisse noted that yields on continuing to invest further in big rating agencies to junk from AAA, he said, adding banks were confi dent of and IL&FS Engineering & Construction after slumping as low as 72.9650 per commercial paper issued by NBFCs technology and talent,” Agarwal within a span of less than two months. maintaining liquidity for various sec- Co 6.26% and 10%, respectively. dollar early in trading yesterday. have spiked 175 basis points in the af- said in the statement. “We will That in turn has sparked concerns tors as required. This coupled with government as- Despite the assurances, analysts and termath of the IL&FS defaults. also deploy fresh capital to take around the viability of other NBFCs, Earlier in the day, India’s largest surances helped Indian equity markets investors remain wary of NBFCs and The brokerage fi rm also estimates our unique model that enables leading to a sharp sell-off in the sector, state-run insurer, Life Insurance Corp snap a fi ve-session losing streak and their prospects in the near-term. mutual funds currently own an esti- small hotel owners to create qual- higher borrowing costs for NBFCs, and (LIC), which owns some 25% of IL&FS, close nearly a per cent higher yester- “We are cautious on NBFCs that have mated 60% of this commercial paper ity living spaces, global.” growing fears of contagion. also said it would not allow IL&FS to day, driven by gains in banks and other grown asset-liability mismatches,” and may seek to trim their exposure in His startup, whose offi cial India’s Finance Minister Arun Jaitley collapse. Speaking with media yes- fi nancial companies. warned Credit Suisse analyst Ashish the current market environment. name is Oravel Stays Pvt, signs on hotel owners and then gets them to upgrade everything from linen, toiletries and bathroom fi ttings to Indian rupee’s double digit rout has an upshot: Rising software exports its specifi cations. It also equips hotels with staff training and standardised sup- Bloomberg the services industry’s 55% contribution to the plies. Mumbai overall economy. It then brings them on board its The boost to services exports from a weaker hotel website, where rooms start currency is in contrast to overall shipments, at $25 per night. The dark cloud hanging over India’s economy which historically haven’t benefited much from a Hotel owners pay Oyo a 25% from the rupee’s rout is not without a silver lining. weaker rupee. commission. The currency’s double-digit drop against the The rupee is Asia’s worst-performing major “Budget travellers are consist- dollar this year is helping the nation’s services currency so far this year and that comes amid a ently shortchanged by the lack of exports, according to HSBC Holdings Plc’s chief global trade war that threatens exports. trust, quality, and consistency,” India economist Pranjul Bhandari. If anything, a slide in the rupee has ended up said Bejul Somaia, managing di- So much so that the share of services exports, inflating India’s import bill. rector of Lightspeed India, ex- which mainly comprise software, has climbed According to Bhandari, the main deterrents plaining that Oyo can change that to 7.3% of gross domestic product in June from to goods exports, which account for 60% of dynamic. 6.8% in March 2017, she said. overall shipments, are domestic bottlenecks, At a $5bn valuation, Oyo would That growth is reflected in the stock market, in particular the hit from the cash ban and be India’s most-valuable startup where the year-to-date gains for information the chaotic introduction of a nationwide after One97 Communications, the technology stocks have outpaced the broad consumption tax. parent of digital payments pioneer market index. Global growth and exchange rates are also Paytm. While the MSCI India index is up about 3%, the factors. Flipkart Online Services Pvt information technology index has jumped nearly “Exchange rates matter, but the least of the three, had been the most valuable star- 37%. because India’s import content of exports are tup in the country, but the online Infosys Ltd, Asia’s second-most valuable exporter rising,” Bhandari said. retailer has been acquired by US of software services, advanced 1.1% yesterday, “On the other hand, the exchange rate matters retail giant Walmart Inc earlier helping the benchmark S&P BSE Sensex index much more for services exports,” she said.“In this year. snap five days of losses. that sense, 2018 is special. India’s hotel industry includes A bank executive counts new 2000 Indian rupee notes at a bank in Srinagar. The rupee is Asia’s It’s also helped to underpin the world’s fastest World growth is up and the exchange rate is large chains with dependable hos- worst-performing currency so far this year and that comes amid a global trade war that threatens exports. growth rate of 8.2% in the June quarter given more competitive than before.” pitality experiences at the mid to top end. HNA Group loses $10bn in market capitalisation

Bloomberg that the group clinched the drama turned tragic as buying Hong Kong support of the government. spree went sour HNA’s Bohai Capital Holding HNA plans to exit its invest- Co, which in June raised only ment in Deutsche Bank AG, onths after HNA about half of what it wanted seek a buyer for its container- Group Co began re- from a bond sale, made another leasing business Seaco and in- Mversing a $40bn over- attempt this month, and again tends to surrender eight floors seas buying spree and suspend- got just about half of what it of office space in Hong Kong, ed trading in seven listed units, sought. people familiar with the mat- investors have put a price on the In another red flag, HNA ters have said. turmoil: $10bn. Ecotech Panorama Cayman HNA Technology Co, which That’s how much the subsidi- Co said in September that it had been halted from trading aries had lost in market value as pushed back the redemption of since January, dropped by the of yesterday, when HNA Tech- $105.6mn in notes by a further 10% daily limit to 5.84 yuan as nology Co plunged in Shanghai, eight weeks. That means the of 1:01pm in Shanghai yester- where it traded for the first time group, once at the forefront of day. since January. China’s overseas buying binge, The unit, which runs Ingram Since the suspensions started to still has to sell more of its Micro Inc, resumed trading af- being lifted months ago, the holdings to raise money. ter it withdrew plans to buy an seven units have lost about a HNA’s plans have also been e-commerce company, in line quarter of their total market complicated by the sudden with group efforts to focus on value, underscoring the chal- death of 57-year-old Co-Chair- its core aviation business. lenges the aviation-to-hotels man Wang Jian in July. The resumption ends months conglomerate faces as it sells Wang was said to be the mas- of suspensions for the seven assets to pay down one of Asia’s termind behind the purchase of subsidiaries with a current largest debt piles. many of the assets that are now combined market value of While HNA has offloaded being sold. about 196.5bn yuan. more than $17bn in real estate Chairman Chen Feng has The company had asked for and shareholdings, the group since stepped up, promot- the halts, citing restructuring missed payments on a 300mn ing two family members as plans, some of which have yet yuan ($44mn) loan earlier this key lieutenants in August and to materialise. month, a sign that liquidity is tightening his control over the Chinese companies have a still a problem. group as he seeks to persuade history of using trading sus- HNA units have struggled to banks, investors and the gov- pensions to prevent their stocks regain the confidence of bond ernment to restore their con- from falling further amid nega- HNA building is seen in Beijing. The company plans to exit its investment in Deutsche Bank, seek a buyer for its container-leasing business investors as well, despite signs fidence in HNA. How the HNA tive news. Seaco and intends to surrender eight floors of off ice space in Hong Kong, people familiar with the matters said. Gulf Times Wednesday, September 26, 2018 15 BUSINESS

Fed to spurn rate pause and stick Instagram founders exit with quarterly hikes: Survey

Bloomberg Facebook as Zuckerberg Washington The Federal Reserve will raise interest rates this week and continue its quarterly drumbeat of 25-basis-point increases straight through to June 2019, according to economists surveyed by Bloomberg. That’s a more aggressive pace for hikes daily involvement grows over the coming months than Fed watchers anticipated in June, when they predicted the Bloomberg Federal Open Market Committee would skip a San Francisco move at its December meeting. Such a pause won’t come until next September, economists now say. he founders of Instagram are In a poll conducted September 18-20, economists leaving Facebook Inc after expected the upper boundary of the Fed’s target Tgrowing tensions with chief range for the federal funds rate to hit 3% in June executive offi cer Mark Zuckerberg 2019 and stay there until the fourth quarter, when over the direction of the photo- they saw a third hike for the year. sharing app, people familiar with That’s a slight step up in pace from the previous the matter said. The stock dropped survey three months ago when the median 2% in pre-market trading yester- estimate was for 2.75% in June. The target day. range for the policy rate currently is 1.75% to Kevin Systrom and Mike Krieg- 2%. er, who have been at the company “Most folks on the committee have laid out a since Instagram’s acquisition by pretty clear strategy that we need to get to Facebook in 2012, had been able neutral, and probably the sooner the better,” said to keep the brand and product in- Stephen Stanley, chief economist at Amherst dependent while relying on Face- Pierpont Securities LLC. Neutral refers to the book’s infrastructure and resources level at which the Fed’s benchmark rate is neither to grow. Lately, they were frustrated hitting the economy’s gas pedal nor touching the with an uptick in day-to-day in- Lately, Kevin Systrom (left) and Mike Krieger were frustrated with an uptick in day-to-day involvement by Zuckerberg, who has become more reliant on brakes. Economists estimated neutral at around volvement by Zuckerberg, who has Instagram in planning for Facebook’s future, said the people, who asked not to be identified sharing internal details. 3%. become more reliant on Instagram That shift from respondents in their projected in planning for Facebook’s future, years and have really enjoyed it.” become increasingly dependent on In a July earnings call, company Levine, back to Facebook to become rate paths went only so far. Not a single said the people, who asked not to be Krieger and Systrom built Insta- the standalone photo-sharing app executives explained that revenue its global head of business develop- economist predicted a fed funds rate higher identifi ed sharing internal details. gram and sold it to Facebook for for its future. growth would slow in the coming ment. While at Instagram, Levine than 3% in June next year. And from there, they Without the founders around, $715mn six years ago. When the Instagram attracts a younger years, and that Facebook would had helped maintain a harmonious predicted just one more hike before it peaks at Instagram is likely to become more deal was announced, the company cohort of users who are critical to have to spend more to expand. That relationship with the parent com- 3.25% in the fourth quarter of 2019. tightly integrated with Facebook, had only 13 employees and 30mn Facebook’s growth. Facebook users announcement caused the biggest pany. Nicole Jackson Colaco, In- The responses signal confidence that, in the near making it more of a product divi- registered users. Now more than also have been fl ocking to Instagram one-day stock market wipeout in stagram’s head of public policy, also term, firming inflation, the tightening US labor sion within the larger company 1bn people use the app monthly, as an escape, tired of the political American history. Menlo Park, left earlier this year. market, and stimulus provided by tax cuts and than an independent operation, the and it is the main source of ad- bickering and privacy scandals that California-based Facebook is still Adam Mosseri, who formerly ran higher government spending will outweighing people said. vertising revenue for Facebook plague the parent company. Users a drag on technology stocks, which Facebook’s news feed, was brought concerns among Fed off icials over an escalating For years, Systrom and Krieger outside the social network’s main averaged 53 minutes a day on Insta- overall have propelled the US stock to Instagram to be head of product trade war with China and emerging market were able to amicably resist cer- news feed. A Bloomberg Intelli- gram in June, just fi ve minutes less market to record highs. FAANG earlier this year. He’s the most likely stresses. tain Facebook product initiatives gence analysis in June said Insta- than on Facebook, according to An- shares — for Facebook, Apple, Am- successor for the founders, people Economists continued to expect, however, that that they felt went against their gram is worth more than $100bn. droid data from analytics company azon, Netfl ix and Google — soared familiar with the matter have said, Fed off icials will forecast a slowdown for the vision, while leaning on Facebook “We’re planning on taking some SimilarWeb. about 58% last year. though Facebook declined to com- economy in 2020. They expect the Fed’s median for resources, infrastructure and time off to explore our curiosity and Instagram is on track to provide Facebook shares are down more ment on who might take over. estimates for growth to be 2.9% in 2018 and 2.5% engineering talent. A new leader creativity again,” Systrom said in a Facebook with $20bn in revenue by than 6% this year after rising in In the past year or so, Facebook in 2019, before dropping to 2% in 2020. may not be able to keep the same statement on the Instagram blog. 2020, about a quarter of Facebook’s every one of the previous fi ve years. has lost several top executives at its Asked what is most likely to cause the next balance, or may be more willing to “Building new things requires that total, Ken Sena, an analyst at Wells The Instagram departures may put biggest acquired properties. Brian recession, just six respondents, or 15%, said a make changes that help the overall we step back, understand what in- Fargo Securities, wrote to investors further pressure on the stock. Acton and Jan Koum, the found- trade war represented the biggest risk. company at the expense of some of spires us and match that with what earlier this year. The company has started men- ers of WhatsApp, announced their “Economists have a lot of hope that trade will get Instagram’s unique qualities. the world needs; that’s what we The company recently launched tioning Instagram more frequently departures after disagreements resolved,” said James Orlando, senior economist The New York Times earlier re- plan to do.” Facebook Watch, a television-like on its earnings calls and taking with Zuckerberg over the messag- at TD Bank in Toronto. “But when you do the math ported Systrom and Krieger’s de- While Facebook has weathered platform that it’s spent hundreds credit for its success. In the most ing application’s business model. on the impact on the US economy, even with the parture. The founders confi rmed scandals on privacy, fake news and of millions of dollars on, mostly for recent call, Zuckerberg explained Chris Daniels, an executive close worst case happening with China — 25% tariff s on their decision in a blog post, al- election interference, Instagram’s content. That was followed by the that Instagram grew twice as fast with Zuckerberg who formerly ran $200bn in goods — you’re looking at a 0.5% hit to though Facebook didn’t have a brand has remained mostly untar- rollout of Instagram’s IGTV, an app being part of Facebook as it could the troubled Internet.org project real GDP.” comment on the tension. nished, and continued to quickly that allows anyone to produce and have on its own, a statement that to connect emerging markets to the More economists thought the next recession “Kevin and Mike are extraor- add users. With more than 2.2bn post longer-form videos. Instagram many Instagram insiders felt was internet, replaced them at the app. would be triggered by the Fed raising rates too dinary product leaders and In- users, Facebook is running out of has a more natural relationship unnecessary and unprovable. Since the WhatsApp shuffl e, In- quickly (12 respondents), by an external non-trade stagram refl ects their combined people in the world to sign up for with infl uencers, who have built up The departure of Instagram’s stagram employees became nerv- shock (11) or by the bursting of a financial bubble creative talents,” Zuckerberg said its social network, and can only huge followings on the platform, so founders comes just weeks after Fa- ous about something similar hap- (10). in a statement. “I’ve learned a lot push so many advertisements into it hasn’t had to pay for them to use cebook decided to bring the photo pening to their group, according to “In the past, cycles have ended when the Fed kills working with them for the past six its news feed. That means it has the new feature. app’s chief operating offi cer, Marne people familiar with the matter. them,” said Ryan Sweet, head of monetary policy research at Moody’s Analytics Inc. “This Fed isn’t going to be overly reckless, so there’s a chance this cycle could be diff erent, but history is against the Fed.” Germany to hold diesel summit amid differing views on how to tackle crisis In the post-meeting statement, economist overwhelmingly predicted the FOMC would stick Reuters on Sunday over potential hardware retrofits Merkel said on Monday that a coalition Scheuer said in a statement yesterday that by its assessment that risks to monetary policy Berlin for older diesel vehicles. committee would meet on October 1 to he favoured exchanging older diesel cars for were “roughly balanced.” While the Environment Ministry favours discuss including diesel. newer, cleaner ones. The economists, themselves, saw risks to growth hardware retrofits costing around €3,000 The government sources said both the “Regarding possible hardware retrofits for and inflation as balanced or tilted to the upside, There will be another high-level diesel ($3,527) per vehicle, Transport Minister environment and economy ministries were German diesel vehicles, my aim is to make with 16% viewing risks as tilted to the downside, summit in the German chancellery on Friday, Andreas Scheuer favours incentives for due to take part in Friday’s meeting. sure owners do not pay anything. compared with 3% in June. two government sources said yesterday, as drivers of older diesel vehicles to trade them Environment Minister Svenja Schulze said on My aim is also to ensure that the loss of value Year-on-year inflation in the US has recently the transport minister said his top priority in for newer models to curb pollution. Twitter that the problem could not be solved of used diesel cars is off set by carmakers, firmed. The Fed’s preferred measure has was to ensure that diesel owners can swap Diff erences of opinions over how to tackle without technical retrofits, adding: “Hardware who would either take them back or surpassed the central bank’s 2% target for five their old vehicles for cleaner ones. the problem of diesel cars with high nitrogen retrofits paid for by manufacturers are the exchange them,” he said. straight months. Still, a majority of respondents Car makers and German government oxide (NOx) emissions have strained best and most fair way to deal with the diesel A spokesman for Daimler said the company didn’t expect the Fed to react more aggressively representatives failed to reach a compromise Chancellor Angela Merkel’s ruling coalition. crisis.” was working on a package of measures. to inflation unless it reached at least 3%.

Praet plays down Draghi’s inflation comments; euro whipsaws ECB slams Latvia for banning

Bloomberg The Governing Council intends to end London their asset-purchase programme at the end of this year amid the improving price Rimsevics before criminal case outlook. They expect interest rates to European Central Bank policymaker Peter stay at record lows “at least through the Bloomberg amid allegations of wide-scale money laun- tion’s decision violates the bloc’s rules pro- Praet said he doesn’t believe President summer of 2019.” Luxembourg dering. viding that the head of a central bank can only Mario Draghi intended to send a new signal Investors are betting that borrowing costs The EU court in July ordered Latvia to be relieved from his offi ce based on “the con- when he said the pickup in underlying euro- will start rising late next year, and Praet partly suspend security measures that pre- viction and high level of certainty of actual area inflation is “relatively vigorous.” said the yield curve in financial markets has he European Central Bank accused vent Rimsevics from naming an alternate to misconduct.” The euro slid after Praet, the ECB’s chief been “broadly consistent” with what policy Latvia of “disregarding entirely” the replace him at ECB Governing Council meet- In this case, the governor remains in his economist, made the remarks in London makers think is needed. Tconstitutional independence of Gov- ings. Earlier this month, Rimsevics tempo- post, but fi nds himself relieved from his yesterday. The single currency jumped the He also stated that the most prominent erning Council member Ilmars Rimsevics in a rarily handed over his ECB voting rights to core functions “based on the assumption of previous day when Draghi spoke at the threats to the eurozone’s outlook for face off at the European Union’s highest court his deputy until the end of the year, ending a a criminal act,” without clear evidence, his European Parliament, and investors bet on price stability and financial stability are amid a criminal probe that’s shaken the Baltic standoff that’s left the Baltic country without lawyer Martins Kveps, told the EU judges. a faster pace of interest-rate hikes over the outside the bloc, such as trade tariff s nation. an offi cial voice on the Governing Council. Unlike criminal sanctions, the security next two years. imposed by US President Donald Trump’s Latvia violated EU law by enforcing se- measures at issue here “are temporary” to al- “I saw indeed yesterday the market administration. curity measures targeting its central bank Latvia violated EU law by enforcing low for a prompt and eff ective investigation reactions,” Praet said. “They reverted a “The biggest risk is coming from the global governor before a local tribunal could rule security measures targeting its central and trial, Jekaterina Davidovica, a lawyer for little bit later, I think rightly, because I environment, and I would say a ‘growth on the substance and without providing bank governor before a local tribunal Latvia told the court. don’t think there was anything new in his accident’ could come from a materialisation key information, a lawyer for the ECB told could rule on the substance and “Latvia has initiated criminal proceedings communication. Basically what we say is of protectionist pressures and a growth a 15-judge panel at the EU Court of Justice without providing key information, a against the governor for a very serious mis- price pressures remain subdued and it will slowdown across emerging markets,” he yesterday. The state decided to apply “the lawyer said conduct” but it’s not a criminal penalty, she take a long time before we get close to 2%.” said. “We know the scenario very well.” most restrictive” available measure — eff ec- said. The measures imposed seek to “avoid The euro dropped a third of a cent before Praet’s appearance is the first of five tively suspending the governor “of all his core “The only information the ECB has re- interference in the criminal investigations, to rebounding to trade 0.1% higher at $1.1762 speaking engagements he has scheduled functions until the end of the criminal pro- ceived as to the accusations and evidence of preclude further crimes.” at 10:42 a.m. London time. It leapt to a three this week. Two events in London yesterday ceedings,” the ECB said. the charges against the governor does not While the ECB did receive some informa- month high of $1.1815 on Monday. are closed to media, and the ECB doesn’t Rimsevics is fi ghting charges he accepted provide suffi cient details for the ECB to con- tion, Latvia didn’t provide it with the fi le September inflation data due on Friday plan to publish his comments. One of those €250,000 ($294,000) in bribes and a trip to sider whether exceptional circumstances ap- concerning the actual guilt. The nation will is expected to show the headline rate is at Omfif, a think tank for central banking. Russia from a commercial bank in exchange ply,” Vineta Cukste-Jurjeva, a lawyer for the inform the ECB of the charges, said Davi- accelerating to 2.1% from 2%, though the The other is hosted by InTouch Capital for helping it with regulatory issues. He’s ECB, told the Luxembourg-based court. Up dovica. measure has been bolstered by oil prices Markets, which describes itself as a provider been restricted from leaving the country and until today, “the ECB has seen no evidence to Advocate General Juliane Kokott of the EU which are near a four-year high. The of financial-market information run by a carrying out his duties, setting up yesterday’s the contrary” and “usually, the governor re- court said she’ll publish a non-binding opin- underlying rate is predicted to be just 1.1%, a team of former bank traders, brokers and clash between Latvia and the ECB. The furor mains innocent until proven guilty.” ion on November 28. A ruling is expected not marginal improvement on August’s 1%. portfolio managers. is part of a bigger fi nancial storm for the na- Rimsevics is also directly challenging the long after, because the dispute is being han- tion, whose fi nancial industry is retrenching restrictions at the EU court, arguing his na- dled under a fast-track procedure. Wednesday, September 26, 2018 GULF TIMES BUSINESS

Qatar delegation at the UN General Assembly in New York Ooredoo achieves ‘Gold-tier Cloud Service Provider’ status with Dell EMC

Ooredoo has achieved the under one pre-configured ‘Gold-tier Cloud Service system. Aongus Hegarty, Provider’ status with Dell EMC, president (Europe, Middle the number one provider of East and Africa) at Dell EMC, cloud infrastructure, further said, “Access to technology providing customers with is not a luxury anymore, but the most innovative business a necessity which lies at the solutions. centre of human progress. As a gold-tier partner, With the Dell EMC Partner Ooredoo gains access to Program for Cloud Service Dell EMC’s comprehensive Providers and Strategic partner training and Outsourcers, we aim to enablement across the off er our partners endless full range of cloud-based possibilities with the right solutions. Worldwide, Dell blend of technology and Technologies’ global channel services. is a $43bn business in a $3tn “It is a privilege to be a marketplace. part of Ooredoo’s exciting Ooredoo chief operating journey of innovation off icer Yousuf Abdulla where our partnership has al-Kubaisi said, “Achieving resulted in an opportunity to Gold-tier partnership with enhance the organisation’s Dell EMC is a major milestone competitiveness and lead for Ooredoo. By leveraging the frontlines of the digital Sheikh Meshal bin Hamad al-Thani, Qatar’s ambassador to the US, and other dignitaries attending a roundtable on the sidelines of Qatar’s participation in the 73rd session Dell EMC’s partner and sales future. With their incredible of the United Nations General Assembly in New York on Monday. The roundtable was organised by the Embassy of Qatar, US-Qatar Business Council and the US Chamber of resources, we can better meet expertise and our continued Commerce. our business customers’ needs commitment to delivering and educate the customer the essential infrastructure, ecosystem on the business we look forward to furthering benefits of the full stack of Dell digital transformation in EMC hardware and software Qatar.” solutions.” Business customers can As a Dell EMC Cloud Service leverage the Ooredoo Provider, Ooredoo is providing Advantage, making Ooredoo its business customers with “Best for Business”, thanks industry-leading hyper- to its breadth and depth of converged infrastructure, talent, best fixed and mobile Qatari start-ups make which integrates Dell networks, broadest portfolio EMC’s industry-leading of ICT services and solutions, cloud computing, storage, and trusted partner for 60 their presence felt at networking, and virtualisation years. WEF meeting in China

atari start-ups made their presence felt at the World QEconomic Forum (WEF), thanks to the eff orts of the Qatar Financial Center (QFC). QFC Authority chief execu- tive Yousuf Mohamed al-Jaida led a delegation of Qatari start- ups at the WEF’s 12th Annual Al-Kubaisi and Hegarty at the agreement signing. Meeting of New Champions (AMNC), held from September 18 to 20 in Tianjin, China. The entrepreneurs who took part include Mohamed al-Saad from Akly, a new food delivery QIC is establishing a new app aimed at providing healthy menu options tailored to us- QR1.8mn company in QFC ers; Khalid al-Ali from Senseta, a world-leading data analytics Qatar Insurance Group is and intelligence fi rm; and Majed establishing a new company Lababidi from Droobi Health, a ‘Epicure Investment’ with an mobile app that helps diabetes initial capital of QR1.8mn in the patients improve their health; as Qatar Financial Center (QFC). well as off ering healthcare pro- The off icial spokesperson viders real-time collaboration of Qatar Insurance Group, and decision making tools. Abdulla al-Mulla (pictured), The AMNC is the foremost confirmed that the directors’ global summit on innovation, board, during their meeting science and technology, pro- Al-Jaida with off icials of Qatari start-ups at the WEF’s 12th Annual Meeting of New Champions in Tianjin, China. yesterday, approved moting entrepreneurship in the establishment of a name that is approved by the global public interest. Es- media, academia and civil soci- aspect of this self-suffi ciency strides in creating programmes suffi cient, and robust economy, limited liability company the Qatar Financial Markets tablished in 2007, the meeting ety. is entrepreneurship, and we are and initiatives aimed at devel- he said, highlighting the estab- in accordance with the Authority (QFMA). The convenes the next generation of “Qatar and the QFC are com- making great progress towards oping the local workforce with lishment of the Qatar Financial rules set out by the QFC. new company will carry fast-growing enterprises shap- mitted to developing a self- developing the entrepreneurial the necessary skills and expe- and Business Academy, an entity The new company will be out investment business ing the future of business and suffi cient, robust economy, landscape in Doha,” al-Jaida rience to further contribute to fully committed to developing named ‘Epicure Investment consultation, the spokesman society, and leaders from major which is aligned with the Qatar said. and support in the transition to- the business and fi nance skillset Management’ or any other added. multinationals, government, National Vision 2030. A central The QFC has made great wards a knowledge-based, self- of Qatar’s youth.

Brent’s rally above $80 is CAPA Qatar Aviation, Aeropolitical and Regulatory Summit to be ‘fundamentally justified’, held in Doha from February 5

atar Airways has an- is delighted to host the up- a timely and important fo- nounced its partner- coming CAPA Qatar Avia- rum for dissecting key issues says Fitch Solutions Qship with leading tion, Aeropolitical and Reg- around ownership and con- aviation market intelligence ulatory Summit in Doha. trol, open skies and market By Pratap John spare capacity has dropped sharply in recent the supply side over the coming quarters. body, CAPA – Centre for This conference, CAPA’s access. Chief Business Reporter months. At the peak of the deal, Opec and Since the global financial crisis (GFC), global Aviation (CAPA), for the in- first aeropolitical event to “We invite all industry Russia removed upwards of 2mn barrels per demand growth rates have typically fluctuated augural ‘CAPA Qatar Avia- be held in the Middle East, leaders to join us in Doha to day (bpd) of production. between 1% and 2%. tion, Aeropolitical and Reg- will provide a forum for engage in dynamic discus- Brent’s rally above $80 per barrel is “As of August, this had dropped to around However, following the oil price collapse, they ulatory Summit’, set to take discussion of key topical is- sions and meet with senior “fundamentally justified”, Fitch Solutions 1.4mn bpd, of which we calculate less than spiked up into a range of around 3% to 4%. place in Doha from February sues, including the rapidly decision makers from the noted, and said “further tightening” on the 250,000 bpd can be viably returned to market Significantly, much of the increase was driven 5-6. evolving global regulatory aviation industry and gov- supply side will lend continued support to this year. Venezuelan output continues to by developed markets (DMs), with lower As the first aeropolitical environment, existing con- ernment.” prices over the coming quarters. tumble; while the full impact of US sanctions prices at the pump buoying demand. This event of its kind to be held in straints on international CAPA is one of the world’s “Sentiment towards oil continues to improve on Iran has yet to be felt. In addition, increase was never sustainable, in light of the Middle East, the high- co-operation and the future most trusted sources of and has been a major factor driving prices production in both Libya and Nigeria, which the long term, structural trend of demand level forum will unite nearly of open skies. market intelligence for the higher,” Fitch Solutions said in a report is extremely volatile — is at or near peak destruction in these markets, Fitch Solutions 300 senior decision-makers “We look forward to wel- aviation and travel indus- released yesterday. capacity, skewing risks to the downside,” Fitch said. from across the airline, legal coming senior aviation exec- try, with a global network of Front month Brent is trading higher following Solutions said. It said the emerging markets retake the and government sectors to utives, members of the legal researchers and analysts lo- the meeting of the Joint Ministerial Monitoring A number of markets outside of Opec are mantle as the engine of global demand discuss the latest develop- community, governmental cated across Europe, North Committee (JMMC) for the Opec+ production raising their production — including Brazil, growth. This will hold “growth in positive ments in international avia- offi cials and all guests to America, Asia and Aus- cut deal in Algiers on September 23, it said. Canada, North Sea and FSU — but the pace of territory”, but without DM support, it will tion regulation, both within Doha in February for this im- tralia. The JMMC issued a statement reiterating greenfield additions has begun to slow, the nevertheless slow. the Gulf region and globally. portant summit.” Established in 1990, the group’s commitment to attaining report said. Rising oil prices and mounting headwinds to Among the key topics to be CAPA executive chairman CAPA hosts a series of glo- 100% compliance with deal. As of August, Added to this, output growth in the US — the EMs have increased the risks to demand over included in the agenda for the Peter Harbison said, “We bal summit events in key compliance stood at 129%. main source of supply growth — ex-Opec is recent months. However, in Fitch Solution’s two-day event are issues re- are pleased to be partnering markets throughout the The statement urged any producer with spare being subdued by pipeline constraints in the view, the “threats to the global economy have lating to ownership and con- with Qatar Airways for the year, offering valuable net- capacity to help ensure that global demand Permian. been somewhat overblown.” trol, open skies and market inaugural CAPA Qatar Avia- working opportunities and can be met, but stopped short of any explicit Spare capacity in the Middle East and Russia “Our data show that, on balance, the slowdown access. tion, Aeropolitical and Regu- in-depth insight on the is- commitment to further increase supply. will not, according to Fitch Solutions data, be in oil demand growth will not be suff icient to Qatar Airways Group latory Summit. In a rapidly sues and trends that are Estimations by Fitch Solutions show that suff icient to prevent a significant tightening on meet the fall in supply,” Fitch Solution said. chief executive Akbar al- changing global regulatory shaping the global airline Baker said, “Qatar Airways environment, the Summit is industry.