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Saturday, May 6, 2017 Sha’baan 10, 1438 AH DATA MAY SEAL CASE FOR FED RATE HIKE : Page 12 US unemployment rate GULF TIMES hits 10-year low at 4.4% BUSINESS Oil rebounds on Saudi assurances Russia will London ‘tries to lure’ extend supply cuts Reuters New York

Oil prices rebounded from five-month lows yesterday following assurances by Saudi Arabia that Russia is ready to join Opec in Saudi Aramco with extending supply cuts to reduce a persistent glut. Traders also noted the technically oversold condition of the oil complex, which collapsed almost 20% from recent highs in mid April, helped restrict further selling. Brent futures were up $1.20, or 2.5%, at $49.58 a barrel by 11:02 a.m. EDT (1502 GMT), while US West Texas Intermediate crude was up $1.09, or 2.4%, at $46.61 per barrel. After falling almost 5% on Thursday, both contracts continued new listing structure to collapse overnight with WTI falling to $43.76, its lowest since November 15, and Brent down to $46.64, its lowest since November Mega IPO unlikely to meet premium them come up with a workable structure 30 when the Organisation of the Petroleum Exporting Countries free float requirement; sources say of this kind in order to clinch the deal. (Opec) agreed to cut production during the first half of 2017. FTSE inclusion unlikely; FCA looking An FCA spokesman declined to com- Both benchmarks started to trim earlier losses after Saudi at “international segment”, ment on an individual company’s listing Arabia’s Opec governor Adeeb al-Aama told Reuters that Opec and says paper arrangements but said it aimed to ensure non-Opec nations were close to agreeing a deal on supply cuts. markets functioned well: “Based on today’s data, there’s a growing conviction that a six- Reuters “Our recent work considers some im- month extension may be needed to rebalance the market, but the London/Hong Kong portant questions about the primary length of the extension is not firm yet,” the Saudi off icial said. markets, and some potential enhance- Opec sources said on Thursday that Opec is likely to extend cuts ments, and are part of the FCA’s wider when it meets on May 25 but that a deeper cut is unlikely. he London Stock Exchange is work on UK primary markets as set out in Opec and non-Opec states initially agreed to cut 1.8mn barrels working on a new type of listing our 2016/17 Business Plan,” the spokes- per day (bpd) in the first six months of 2017. Tstructure that would make it more man said in response to questions about Despite the gains so far yesterday, both benchmarks were on attractive for oil giant Saudi Aramco to the creation of a new segment. track to fall for a third week in a row, their longest losing streak join the bourse, sources familiar with the The LSE declined to comment. since November. discussions said. Saudi Aramco said it did not comment Brent and WTI futures are down about 17% so far this year de- Exchanges around the world are vying on rumour or speculation. spite Opec eff orts to support prices. for a piece of Saudi Aramco’s initial public The creation of a new listing segment The benchmarks are trading around levels last seen before the off ering (IPO), expected to be the largest in comes just four years after the UK List- joint deal to cut output was first announced. history. The company is expected to list on ing Authority (UKLA), which is part of “The energy complex is slowly succumbing to an opinion the Riyadh exchange, the Tadawul, and at the FCA, announced new rules designed that this year’s Opec production cuts have been ineff ective,” Jim least one major international stock market. Exchanges around the world are vying for a piece of Saudi Aramco’s initial public to prevent controlling shareholders from Ritterbusch, president of Chicago-based energy advisory firm Rit- The LSE is seen as one of the front- off ering (IPO), expected to be the largest in history. exercising undue infl uence over a com- terbusch & Associates, said in a note. runners to win part of the IPO and has pany’s board. “We feel that the Opec has come to a fork in the road in which been pushing hard to land it. In the 2000s, as the LSE sought to at- the current agreement will be abandoned or steps will need to be LSE chief executive Xavier Rolet trav- tract new money from overseas compa- taken to double down on current eff orts by increasing production elled with British Prime Minister Theresa Aramco splits IPO advisory roles nies, the UKLA waived the usual govern- curtailments,” Ritterbusch said. May last month to Saudi Arabia, with the ance requirements for fi ve new overseas Brent traded volumes on Thursday reached a record high of pair meeting the kingdom’s sovereign Reuters 5% of the company in a share sale which companies, allowing them to list less than nearly 542,000 contracts, suggesting that hedge funds had accel- wealth fund, which is expected to be a ma- London could raise $100bn. Brunswick was 25% of their shares as it sought to attract erated reductions to their long positions. jor decision-maker in the listing process. recently appointed to run the external money from overseas. Pierre Andurand, who runs one of the biggest hedge funds But none of the exchange’s current listing and media communications for the IPO Those rules were tightened in 2013 af- specialising in oil, liquidated his fund’s last long positions in oil last structures are likely to appeal to Aramco. Saudi Aramco has appointed advisory firm while US-based FTI will focus on manag- ter scandals at two high-profi le emerging week and is running a very reduced risk at the moment, a market So LSE is working on a new model that Brunswick to join FTI Consulting in running ing investor relations, according to two market companies — ENRC and Bumi, source familiar with the development said. would allow it to avoid the most onerous media and investor relations for what is set sources with knowledge of the matter. both controlled by foreign tycoons — left “It is now-or-never for oil bulls,” said US commodity analysis corporate governance requirements of to be the world’s largest initial public off er- A spokeswoman for Brunswick declined investors nursing heavy losses. firm The Schork Report. “They either put up a defence here or risk a primary listing, without being seen as ing (IPO), sources said. to comment, FTI did not respond to a The FCA made several changes then to further emboldening the bears for a run at the $40 threshold (for second class. The decision to split the role under- request for comment. protect minority investors, including in- WTI).” Such an approach could leave the Brit- scores the mammoth task facing Saudi Aramco declined to comment. troducing a requirement for companies Adding to concerns about bulging inventories, traders pointed ish stock market open to criticism that it Arabia’s national oil giant which hopes to FTI’s appointment was reported by in which one shareholder owns more than to soaring US oil output, which is up more than 10% since mid-2016 is changing the rules in order to attract list in 2018 in several countries around Reuters in March. 30% to have a “relationship agreement” to 9.3mn bpd, almost matching output of top producers Russia and large state-backed companies which are in place to ensure they can operate inde- Saudi Arabia. reluctant to meet more stringent corpo- pendently from that shareholder. rate governance requirements. The existing alternative is for Aramco cussing a new category of listings for large But there has never been a listing close LSE declined to comment for this story. to opt for a “standard listing” which has international companies which may fail to to the size Aramco is proposing, and a Currently most companies on the LSE less onerous corporate governance re- meet the premium listing standards but is person familiar with May and Rolet’s visit have a “premium listing”, which is re- quirements, especially in relation to the more prestigious and more appealing to said some of the current rules may not be quired if they are to be included in the issue of controlling shareholders. investors than the “standard” category. appropriate for Aramco. FTSE index. That requires fi rms to list at Standard listings are, however, gener- In a recent discussion paper, the FCA The source characterised the approach least 25% of their shares in a free fl oat, ally seen as less attractive to investors and said a proposed international segment to accommodating Aramco as “bespoke unless regulator Financial Conduct Au- have connotations of being second best. “may be attractive to companies where treatment”. thority (FCA) makes an exception, and Advisers often tell companies not to there is a founding family or government In a note, law fi rm Davis Polk ques- be subject to corporate governance rules pursue this option. that wishes to retain control rights that tioned whether the new listing segment which include giving minority sharehold- “By listing as premium or standard, big are incompatible with a conventional was targeted at only those companies ers extra voting power on issues such as pension funds and asset managers know premium listing”. with the type of features that caused the independent directors. where they sit in terms of governance,” While the paper discussed general list- past scandals, investor outcry and tight- But Saudi Aramco, which estimates its said Russell Holden, corporate partner at ing rules, sources familiar with nego- ening of the premium listing regime. total value to be around $2tn, has so far international law fi rm Taylor Wessing. tiations said the new segment was being Even if it lists with the proposed new indicated it wants to list no more than 5% Instead, sources said the LSE and the devised specifi cally with Aramco in mind. structure, there are still doubts over of its shares, leaving private investors with UK Listing Authority, which is part of They said both the LSE and government whether Aramco would be eligible to join little chance to infl uence the company. the Financial Conduct Authority, are dis- were putting pressure on the FCA to help the UK’s FTSE stock indices. Etihad faces tough Air Berlin call after Alitalia bankruptcy

Bloomberg called Equity Alliance strategy that saw or stay invested with a clear return-on- of Dubai and Qatar Airways. Seeking CEO Thomas Winkelmann, though, already proved saleable. As its losses Dubai it build up minority holdings in carriers investment ultimatum.” That means to fast-track its expansion, the com- said on the same call that there are mounted last year, Etihad brokered a spanning Ireland to Australia. deciding which assets have value and pany sought out airlines that would “fundamental diff erences” between Air deal to lease 38 of the unit’s aircraft plus The fresh funding — combined with which are simply “deadweight.” feed more traffi c through its home base Berlin and Alitalia, with management, crews to Deutsche Lufthansa, where hile Etihad Airways let Alita- Etihad’s assertion that “what has hap- The question of whether to carry on while benefi ting from a dose of man- labour unions and investors all gener- CEO Carsten Spohr has said he’d be in- lia slide into bankruptcy after pened at Alitalia does not aff ect how funding its partners, most of which are agement expertise and the synergies of ally “pulling in the same direction.” At terested in taking on more of the busi- Wworkers spurned a restruc- we view any of our other equity invest- profi table, was already under review being part of a bigger group. the Italian company workers last week ness on the right terms and if permitted turing plan, the Gulf carrier is showing ments” — represent some show of faith at Etihad and has become more press- At the same time, it was taking on voted against job cuts tied to a 2bn bail- to do so by antitrust authorities. more patience with its other ailing Eu- in Air Berlin, which has racked up net ing with Mideast demand stuttering what were usually unprofi table con- out plan, leading to the bankruptcy fi l- In a parallel deal, Air Berlin will also ropean asset. losses of €2.7bn in little over six years as the lower price of crude clips book- cerns while being unable to assume full ing. move about 20 jets to a leisure business Hidden on page 154 of Air Berlin’s and has net debt of €1.2bn. ings from the oil and gas industry and control due to caps on outside owner- Air Berlin still has its strategic at- to be formed between TUI AG and Eti- annual report, published hours af- That’s especially so since James weighs on the wider economy. ship. While some partners, such as Jet tractions, continuing to provide access had. That will leave the airline — which ter Alitalia’s insolvency fi ling, was the Hogan, Etihad’s chief executive offi cer The challenging climate has prompt- Airways (India), are now making mon- to a German market which Gulf carri- once touted itself as “hybrid” operator revelation that Abu Dhabi-based Eti- since 2006, is preparing to depart in the ed Etihad itself to cut jobs and means ey, others, including Virgin Australia ers have found tough to penetrate due spanning business, low-cost and tour- had had agreed to provide the German second half, presenting an opportunity the company will fi nd it increasingly Holdings, are still struggling. to strict bilateral agreements. Winkel- ist fl ights — with only about 75 aircraft, company with fi nancial support for for a clean break in the group’s strategic tough to justify further foreign bailouts On the face of it, the situation at Air mann is working on a new restructur- or about half the former fl eet, making it at least another 18 months, including approach. to its state owner, said Diogenis Papio- Berlin — in which Etihad has a 29% ing plan after taking over on February much more focused, according to Win- €350mn ($382mn) of new funds. “It’s imperative that Etihad defi nes a mytis, Dubai-based director of aero- stake — appears particularly dire, with 1, and WirtschaftsWoche reported on kelmann, a former Lufthansa execu- That extra injection takes Etihad’s clear road map,” said aviation special- space and defence at consultants Frost chief fi nancial offi cer Dimitri Courte- Thursday that the company has been in tive. total exposure to Air Berlin close to ist Mark Martin, who heads the Dubai- & Sullivan. lis resorting to using an April 28 ana- contact with Delta Air Lines and Chi- “The old Air Berlin was an airline €2bn and suggests the Mideast com- based Martin Consultancy. “The time Etihad devised its investment strat- lyst call to reassure passengers that the na’s HNA Group Co, owner of Hainan that attempted to do everything, that pany is not yet ready to abandon a has come for Etihad to face tough deci- egy after coming later to the Gulf air- company remained liquid and wasn’t Airlines, about possible partnerships. sought to be a jack-of-all-trades,” the partner which sits at the heart of a so- sions, either to stop the fi nancial bleed line party than larger rivals Emirates about to cease fl ying. Moreover, Air Berlin’s assets have CEO said. “That is clearly not possible.” Gulf Times 2 Saturday, May 6, 2017 BUSINESS

Indonesia economic India tweaks laws to help growth picks up in 1st quarter tackle $150bn bank debt Reuters New Delhi/Mumbai AFP Jakarta ndia yesterday tweaked its laws to help tackle a record $150bn in ndonesian growth acceler- Itroubled bank debts, giving its ated slightly in the fi rst quar- central bank greater power to iden- Iter on improving exports, of- tify and enforce resolution on specific fi cial data showed yesterday, but soured loans. the outlook for the recovery in In an executive order that alters a Southeast Asia’s top economy is Banking Regulation Act, the govern- subdued. ment authorised the Reserve Bank of President Joko Widodo came India (RBI) to direct banks to initiate to power in 2014 on a pledge an insolvency resolution process in to boost growth to 7% but his the case of a default under provisions government has struggled to of the bankruptcy code. lift rates in the country, which The ordinance, which goes into ef- is rich in resources but has suf- fect immediately, also said the RBI fered from a slump in commod- may specify one or more authorities, ity prices. or panels to advise banks on resolu- The economy grew 5.01% tion of stressed assets. year-on-year in January-March, “The object of this act is that the slightly up from the previous present status quo can’t continue quarter’s 4.94%, according to and the present status quo is that not the statistics agency. much was moving,” Finance Minister Exports surged 20.8% on- Arun Jaitley told a news conference. year, and grew 1.33% from the The move marks the latest attempt previous three months, said sta- to tackle the record Rs9.64tn ($150bn) tistics agency chief Suhariyanto, in stressed loans accumulated as of who goes by one name. the end of December that have choked The increase came on the back new credit and hurt economic growth. of a jump in the prices of some “The ordinance is a welcome step, food exports, such as tea and but there is a long road ahead. shrimp, according to the sta- Until the capital actually comes in, tistics agency, while improving things are likely to remain a bit dif- conditions in key destinations ficult,” said Tirthankar Patnaik, Mi- such as China and the United zuho Bank’s India Strategist. States also helped. Including “unrecognised” prob- However, consultancy Capital lem loans, total stressed debt in the Economics said falling prices of system could be as high as $191bn, or coal and palm oil — key exports 16.6%, of total loans as of September for the nation — were weighing 30, 2016, the finance ministry has on growth. estimated. “Looking ahead, with com- Jaitley said other steps were also in modity prices likely to stay the works to tackle bad debt, but said relatively depressed and credit they would be communicated later. growth set to remain weak, we State-run lenders, who dominate expect growth to remain stuck at India’s banking sector, carry the bulk around fi ve % over the next cou- of the soured debt. ple of years,” Capital Economics’ Bankers, however, have been reluc- Jaitley: Other steps are also in the works to tackle bad debt. Gareth Leather said. tant to decide on haircuts or move on Growth in Indonesia has been resolutions rapidly for fear of being funded remained unanswered. India’s years to March 2019. The bank- But the measures have had little im- “Banks earlier had power to initiate stuck at around 5% for the past charged by law enforcement agencies banking secretary Anjuly Chib Dug- ing sector index closed 0.5% lower pact. insolvency proceedings, but they were three years, below the 5.8% aver- on write-offs taken by them. gal, who also spoke at the conference, after hitting a record high earlier Much will depend on how resolutely unwilling,” said Sujeet Das, a partner age recorded over the past dec- With the RBI now explicitly being said the government would boost yesterday. the RBI implements the latest direc- at Gravitas Legal. “Now if the RBI in- ade, according to the London- given powers to intervene and guide capital injection in banks, if needed, Bad debt rose as huge loans to sec- tive. structs them, the banks shall be bound based consultancy. banks towards resolutions, a part of contingent upon strict performance tors such as infrastructure came un- “We’ll have to wait for the RBI to comply with its directions.” Authorities have been scram- that “concern or fear will be mitigat- parameters. done after sections of the economy guidelines to understand how this en- Arundhati Bhattacharya, head of In- bling to boost growth, unleash- ed”, said Saswata Guha, a director at Fitch estimates Indian banks will came to a standstill following the 2008 tire system will work in terms of tack- dia’s largest lender, State Bank of India ing a series of economic stimu- Fitch Ratings. need about $90bn in new capital to global fi nancial crisis. ling bad loans, and this will be a fairly also welcomed the government’s move lus measures last year, while the “I’m really not sure whether this tackle bad debt and meet global Basel Under the previous governor, Ra- long process,” said Shibani Kurian, aimed at tackling non-performing as- central bank cut the key interest changes anything overnight but this III banking rules taking eff ect in March ghuram Rajan, the RBI focused on senior vice president and head of eq- sets (NPAs). rate six times. will certainly help put the wheels back 2019. forcing lenders to acknowledge the uity research at Kotak Mutual Fund. “Empowering the RBI with an ex- Full-year growth ticked up in motion,” he said, noting that the New Delhi, however, has so far extent of stressed assets in their books Nonetheless, some remain optimis- plicit mandate should reorient various to 5.02% in 2016 but undershot big question on how the banks’ incre- only outlined plans to inject Rs700bn and then to attempt to restructure tic that the new rules will spark move- stakeholders for eff ective NPA resolu- expectations in the fi nal quarter. mental capital requirements will be ($10.9bn) into the sector in the four them under various schemes. ment. tion,” she said in a brief statement.

China data to show solid growth in ChemChina clinches landmark April, but high debt poses risks Reuters several times already this year and Beijing further modest increases are expected, especially if US rates continue to rise, which could risk a resurgence in capital $43bn takeover of Syngenta A looming flurry of Chinese data is outflows from China. expected to show the world’s second- To this extent, investors will be largest economy maintained solid watching to see whether March’s stabi- Reuters momentum in April after a surprisingly lisation of foreign reserves will extend Zurich robust first quarter, but the pace is seen into April, which might suggest Chinese tapering off as Beijing turns the screws authorities had stepped back from FX on debt risks and a hot property sector. intervention. hemChina has won more than A Reuters poll of indicators from The poll tipped China’s foreign enough support from Syn- goods trade to industrial output as exchange reserves to have edged up Cgenta shareholders to clinch its well as retail sales, loans growth and in April to $3.02tn, from $3.009tn in $43bn takeover of the Swiss pesticides property investment signalled the March, during which a pause in the and seeds group, the two companies Chinese economy was motoring along dollar’s rally aided Beijing’s eff orts to said yesterday. at a nice clip even as some moderation contain capital outflows. The deal, announced in February was evident as demand at home and In the first quarter, a property boom 2016, was prompted by China’s desire abroad slackened. helped boost the industrial sector and to use Syngenta’s portfolio of top-tier The value of exports was seen rising lifted China’s growth to a solid 6.9%, chemicals and patent-protected seeds 10.4% on-year, and imports up 18%, though polls for April showed a temper- to improve domestic agricultural out- below the sizzling 16.4% and 20.3% ing of the pace. put. growth rates notched in March, partly China’s producer price index (PPI), It is China’s biggest foreign takeover reflecting a drop in commodity prices. for instance, was seen rising 6.9% from to date. The trade surplus for April was a year earlier, slowing from a 7.6% rise It is one of several deals that are re- tipped at a solid $35.50bn, rising from in March. making the international market for $23.93bn in March. The PPI cooled for the first time in agricultural chemicals, seeds and fer- “The economy is turning a bit more seven months in March as iron ore tilisers. than people anticipated,” said Julian and coal prices tumbled, pressured by The other deals in the sector are Evans-Pritchard, an economist at Capi- fears that Chinese steel production is a $130bn proposed merger of Dow tal Economics in Singapore, adding that outweighing demand and threatening a Chemical and DuPont, and Bayer’s April’s data could surprise on the down- glut of the metal later this year. plan to merge with Monsanto. side, similar to recent PMI surveys. Inflation is also expected to show The trend towards market con- “The main leading indicator is that only a modest pick-up, with the con- solidation has triggered fears among since last summer, credit growth has sumer price index predicted to rise 1.1% farmers that the pipeline for new her- been slowing. in April, after increasing 0.9% in March. bicides and pesticides might slow. Agrochemicals maker Syngenta’s logo is seen during the annual news conference in Zurich. ChemChina has won more Often it takes a while for slower The milder inflationary pressures Regulators have required some di- than enough support from Syngenta shareholders to clinch its $43bn takeover of the Swiss pesticides and seeds group, credit growth to show up in the data,” suggest policymakers will have room vestments as a condition for approv- the two companies said yesterday. he said, noting tightening measures to tighten credit, and reduce risks in ing the Syngenta deal. currently underway were also putting the financial system after years of debt- Based on preliminary numbers, and payment of a special 5-franc divi- Syngenta would remain a Swiss-based He said he expected the accept- the brakes on growth. fuelled stimulus. around 80.7% of Syngenta shares have dend to holders of Swiss-listed shares global company while under Chinese ance rate to easily surpass 90%, with a China’s central bank has cautiously Beijing is targeting consumer infla- been tendered, above the minimum on May 16. ownership. squeeze-out of remaining sharehold- shifted to a tightening policy bias in tion at 3% this year, unchanged from threshold of 67% support, the part- Holders of US-listed depositor re- “It is very important to understand ers to follow if needed in June. recent months after years of ultra-loose 2016. ners said in a joint statement. ceipts will get the special dividend in that this is a fi nancial transaction,” he Funding for the acquisition was settings led to an explosive build-up of Industrial output is expected to rise The agreed off er is for $465 per July. told broadcaster CNBC in an inter- clear and irrevocable, while refi nanc- debt, forcing authorities to take steps to 7.1% in April, slowing from 7.6% in March share. Syngenta shares will be delisted view. ing the company after the transaction defuse bubbles in the economy. when it rose the fastest on a yearly Syngenta shares closed on Thurs- from the Swiss bourse and its deposi- He saw two major changes: giving closed was still being discussed. Policymakers have continued their basis since December 2014. day at 459 Swiss francs ($464.5), and tory receipts from the New York Stock Syngenta a long-term shareholder to “I am very confi dent we are going to eff orts to cool the property sector, an- Fixed asset investment probably rose 0.4% in early trade yesterday to Exchange. accompany it during the 12 years it have a strong balance sheet as agreed,” nouncing a range of steps over the past stayed relatively stable at 9.1% in April, 461.20 francs. Chief executive Erik Fyrwald played typically takes to discover and launch he said, with an investment-grade several months. from 9.2% in March, while retail sales The transaction is set to close on down the transition from publicly list- new products, and helping to overhaul rating that would let it pursue market The People’s Bank of China (PBoC) were seen up 10.6%, down slightly from May 18 after the start of an additional ed group to becoming part of a Chi- Chinese agriculture, which he called share growth, investments, capital has nudged up short-term interest rates 10.9% in March. acceptance period for shareholders nese state enterprise, stressing that very much behind the global standard. spending and acquisitions. Gulf Times Saturday, May 6, 2017 3 BUSINESS With maiden jet fl ight, China enters dog-fi ght

with Boeing, Airbus Dar: The central bank’s current acting governor probably wouldn’t be the permanent choice.

Reuters ture, we will be neck-and-neck with Boe- ment the fl ight went smoothly and that It made its maiden passenger fl ight Shanghai ing and Airbus.” At the moment, though, all the systems functioned properly. in June last year. Then there is also the Boeing and Airbus remain far ahead in The C919, made by state-owned Com- daunting task of selling the jet in a global terms of sales, technical know-how and mercial Aircraft Corp of China (COMAC), market dominated by Boeing and Airbus. Central bank head still hina’s home-grown C919 passen- order books. relies on overseas technology from fi rms “Aviation is a complex market and you ger jet completed its long-delayed And the C919, whose test fl ight was including General Electric, France’s Sa- need experience over a long time. Cmaiden fl ight yesterday, a major pushed back at least twice since 2014 due fran, Honeywell International Inc and Boeing has 100 years, Airbus has over in play in Pakistan, fi rst step for Beijing as it looks to raise its to production issues, may need years of United Technologies Corp subsidiary 40 years,” said Sinolink Securities analyst profi le in the global aviation market and tests to get certifi ed in China, as well as in Goodrich. Si Jingzhe, adding COMAC still lagged far boost high-tech manufacturing at home. the United States and Europe. China Eastern Airlines is the launch behind in terms of supply chain know- says fi nance minister Under overcast skies, the white, green Yesterday, the C919 fl ew north over the customer for the plane, which COMAC how. and blue aircraft, with “C919” em- Yangtze River delta, carried out manoeu- says has 570 orders from 23 customers. China is aware the path won’t be easy. blazoned on its tail, touched down at vres and then returned south along the Conceived in 2008, China wants the On a media visit on Thursday to Bloomberg annual loan program by $500mn Shanghai’s international airport after an coast before landing, according to aircraft C919 to eventually take market share COMAC’s C919 assembly plant less than Karachi to $2.5bn by 2019 to help the 80-minute fl ight to cheers from thou- tracker Flightradar24. from Boeing and Airbus in the lucrative 10 kilometres from the airport, large red economy, which he expects to sands of dignitaries, aviation workers and State media said the plane fl ew at narrow-body market which accounts for banners could be seen in giant hangars grow by 5% to 5.5% in the year enthusiasts. around 3,000 metres and at speeds of more than 50 % of the aircraft in service calling for long-term “hardship”, “dedi- akistan’s Finance Minister ending June. The jet is a symbol of China’s ambi- 290-300 kilometres (180-186 miles) per worldwide. cation” and “struggle” to meet the fi rm’s Ishaq Dar said the central “Our own infrastructure fi - tions to muscle into a global jet mar- hour. The crew of fi ve pilots and engi- “Every year we spend billions on buy- goals. Pbank’s current acting gov- nancing and development needs ket estimated to be worth $2tn over the neers, all wearing orange jump suits and ing planes,” a COMAC promotional video China is pushing for recognition glo- ernor probably wouldn’t be the are much bigger than the whole next two decades, as well as of Beijing’s aviators, were applauded as they disem- showed President Xi Jinping saying dur- bally of its certifi cation by European and permanent choice, as the coun- Asia,” Dar said. “Obviously one broader “Made in China 2025” plan to barked. ing a site visit. US regulators as without their certifi ca- try’s economy faces headwinds wishes to access more.” spur home-made products, from medi- The plane, which can carry 158-168 He added China should become more tion, it would only be able to sell the jet before elections next year. Dar denied a report published cines to robots. passengers, had no passenger seats in- self-reliant. to a handful of countries that accept its The government of Prime in the Financial Times last week “Seeing the C919 take off into the sky stalled for the maiden fl ight. However, the jet likely faces a lengthy certifi cation standards. Minister Nawaz Sharif will soon that Pakistan had asked state- made me quite emotional. This is a mo- A letter from China’s ministerial cabi- journey from fi rst fl ight to commercial But Beijing is already looking beyond decide a new head of the State owned Chinese banks to loan ment we have waited to see for a very net, read out after the plane landed, said usage. China’s fi rst home-made jet, the the C919, with plans to develop a wide- Bank of Pakistan after declining the government about $300mn long time,” Wang Mingfeng, 42, who wit- the successful fl ight marked a “major regional ARJ-21, received its type certi- body long-haul jet with Russia. to extend the three-year term of in the fi rst quarter of this year nessed the maiden fl ight at the Shanghai breakthrough” and milestone for China’s fi cation in December 2014, six years after In November COMAC and its partner Ashraf Wathra, who introduced and $900mn in 2016 to fend off airport, told Reuters. passenger jet industry. its fi rst fl ight and more than 12 years after United Aircraft Corp said they have start- South Asia’s fi rst monetary a currency crisis. “I believe that in the not too distant fu- The industry ministry said in a state- it was conceived. ed the hunt to fi nd suppliers. policy committee last year after “This is an untrue picture, continued questions about the we do normal business with all central bank’s independence. the banks all over the world,” he Riaz Riazuddin, a deputy gover- said. “We haven’t reached out to nor, was selected as acting head the Chinese government as such in his place on May 1. per say to help us, right now we “I doubt whether he would be are almost $16bn reserves, so we a permanent governor,” Dar said have no issue at all.” in an interview with Bloomberg The central bank in its most Television yesterday in Yoko- recent quarterly report said Pa- hama, Japan. “Within three kistan received $382mn in loans months, either we have to ap- from China during the last quar- point somebody or anybody, it ter of 2016 to fi nance the coun- can be him or anybody else. Even try’s “growing current account the previous governor stands a gap.” Those disbursements chance.” reached $848mn in the fi rst half The change at the central bank of the year through June 2017. comes as Pakistan’s economy Ahead of presenting the an- starts to look vulnerable after nual budget at the end of this boosting reserves and growth month, Dar reiterated that the in the past three years with help size of Pakistan’s economy is from a $6.6bn International probably understated by as Monetary Fund programme that much as 25% as the base year ended in September. used by the statistics agency Spending and loans taken on is almost two decades old. The infrastructure projects under the World Bank has been authorised more than $50bn China-Paki- to carry out a study, he said. stan Economic Corridor is wid- Infl ation, which rose 4.78% ening the current-account defi - in April, is expected to average cit as exports, such as textiles, around 4% for the year through continue to decline. There’s in- June, Dar said. The government’s creasing concern Pakistan will target is to keep that level at be left with unmanageable debts. about 6% or lower. Dar, who was attending the “In 2013 Pakistan was known Asian Development Bank’s an- as an unstable macro economy, nual meetings, said that Paki- so we have turned around in China’s home-grown C919 passenger jet lands during its first flight at Pudong International Airport in Shanghai yesterday. stan had asked for a boost to its three plus years,” he said. BoJ chief voices confidence in hitting inflation target China fi nance minister skips

Reuters growing and will continue to grow was quoted as saying in the Yokohama well above its potential, the output interview. summit with Japan, S Korea gap will continue to improve in the Kuroda is in Yokohama, eastern coming months and years. Japan, to meet financial leaders Bank of Japan governor Haruhiko That would strengthen pressure gathering for the Asian Develop- Reuters weighed on banking shares. At the trilateral na’s Ministry of Finance confi rmed to Reuters Kuroda yesterday voiced confi- on wages and prices,” Kuroda told ment Bank’s annual meetings. Yokohama meeting, the fi nance leaders agreed to resist all that Xiao had missed the trilateral meeting, dence that the country’s inflation a news conference. After more than three years forms of protectionism, taking a stronger stand which took place on Friday morning, but that rate will accelerate towards his 2% “It’s challenging for central of huge asset purchases failed than G20 major economies against the protec- he had departed for Japan in the afternoon. target as robust economic growth banks to achieve their price stabil- to accelerate inflation, the BoJ hinese Finance Minister Xiao Jie tionist policies advocated by US President Don- The ministry offi cial did not say why Xiao pushes up wages and helps ity targets in a timely manner, revamped its policy framework skipped a trilateral conference with ald Trump. The senior Japanese fi nance offi cial missed the meeting. Offi cials at South Korea’s heighten inflation expectations. but that doesn’t mean we would last September to one aimed at Chis Japanese and South Korean coun- said he did not see any diplomatic implications fi nance ministry could not be reached for com- Kuroda conceded that infla- change our 2% target,” he added. capping long-term interest rates. terparts yesterday to attend an emergency from Xiao’s absence, saying the minister was ment yesterday. The trilateral meeting was held tion expectations were not well In an earlier interview with Japan’s economy has shown domestic meeting, a senior Japanese fi nance likely to arrive in Yokohama yesterday evening. on the sidelines of the Asian Development Bank’s anchored in Japan, making it chal- CNBC, Kuroda said the BoJ will signs of life, as exports rose the ministry offi cial said. “I don’t think this is rude,” the offi cial said, annual gathering in Yokohama, eastern Japan. lenging to convince households maintain its long-term interest rate most in over two years in March The Japanese offi cial told reporters at a min- when asked about Xiao’s absence. China’s increasing presence in infrastruc- and companies that a sustained target for the time being to ensure and manufacturers’ confidence istry press briefi ng that Xiao’s absence was not “I heard an emergency meeting was called ture fi nance and the threat that poses to Ja- economic recovery will eventually the economy is sustainably out of hit the highest since the global related to any diplomatic matters, adding that and the Chinese fi nance minister had to attend,” pan’s economic infl uence in the area are lead to higher inflation and wages. deflation. financial crisis a decade ago. Xiao was expected to attend the Japan-China he said. “We can understand the situation. We expected to be a topic of debate at the confer- But he said that once inflation “The mindset (of the Japanese But core consumer prices for fi nance dialogue in Japan scheduled for today. don’t see any deeper diplomatic meaning to ence. A Japanese Ministry of Finance offi cial rates start to accelerate sig- public) is still quite cautious about March rose just 0.2% from a year He did not elaborate on the nature of the min- this.” Xiao will join a bilateral Japan-China fi - said the Chinese delegation was represented nificantly, that will change public inflation expectations. earlier, well below the BoJ’s target, ister’s emergency meeting. nance dialogue scheduled for today, in which by its deputy fi nance minister and a senior perceptions of future price rises But I’m quite sure that will a sign the Japanese central bank The Chinese-minister’s non-attendance the two sides are expected to discuss their eco- offi cial from the Chinese central bank at the and enable the BoJ to achieve its change with continuous ac- will lag behind its major counter- came as commodity prices took a beating, and nomic cooperation, Japanese Finance Minister trilateral summit where fi nance offi cials from price target. commodative monetary policy parts in withdrawing monetary Chinese stocks fell to three-month lows as Taro Aso said earlier yesterday. the three countries met and pledged to resist “Since Japan’s economy is supported by fiscal policy,” Kuroda stimulus. concerns about tighter fi nancial regulations An offi cial in the news department of Chi- protectionism. China, Japan, S Korea to combat fi nancial instability

AFP Washington, as well as calls for China to rein geopolitical tensions,” a joint statement said. Tokyo in its reclusive ally. The three-way talks were held on the side- Financial markets have been rattled by the lines of the Asian Development Bank’s annual events which have hit investor sentiment, and meeting in Yokohama, southwest of Tokyo. ast Asia’s three biggest economies yesterday fi nance ministers and central bank Financial ministers and central bank gover- vowed yesterday to work together to governors from China, Japan and South Ko- nors of the 10-strong Association of Southeast Ehelp prevent market instability as ten- rea affi rmed their cooperation in the face of Asian Nations (Asean) were also attending the Ministers and central bank governors including Japanese Finance Minister Taro Aso (3rd from left), sions run high over Pyongyang’s weapons future uncertainty. “We will continue high ADB gathering, which began on Thursday. In a Bank of Japan governor Haruhiko Kuroda (4th from left), Chinese Vice-Minister of Finance Shi Yaobin programmes. North Korea’s eff orts to develop degree of communication and coordination separate meeting with Asean countries, Japan (2nd from right) leave from podium after a photo session at Asean+3 finance ministers and central an arsenal of nuclear-armed missiles have among China, Japan and Korea to cope with yesterday proposed to create a new currency bank governors’ meeting on the sideline of Asian Development Bank’s annual meeting in Yokohama. fuelled concerns among its Asian neighbours possible fi nancial instability in the context of swap arrangement worth ¥4tn ($36bn) in case and led to threats of military action from increased uncertainty of global economy and the region faces a fi nancial crisis. Gulf Times 4 Saturday, May 6, 2017 BUSINESS

China insurance regulator bans Beijing seeking up to 85% Anbang Life for three months stake in Myanmar port Reuters Beijing Reuters Yangon hina’s Anbang Life Insurance Co was pun- ished by the country’s insurance regulator hina is looking to take a stake Cwhich yesterday barred the fi rm from ap- of up to 85% in a strategi- plying to issue new products for three months, Ccally important sea port in the latest move in an industry-wide crackdown. Myanmar, according to documents Anbang Life, a key part of Anbang Insurance reviewed by Reuters, in a move that Group Co, was cited for “disrupting market or- could heighten tensions over Chi- der” by designing a product that bypassed regu- na’s growing economic clout in the lations aimed at curbing growth of short-term, country. risky universal life insurance products, the China Beijing has been pushing for pref- Insurance Regulatory Commission (CIRC) said in erential access to the deep sea port an online public notice. of Kyauk Pyu on the Bay of Bengal, CIRC’s move against Anbang Life comes dur- as part of its ambitious “One Belt, ing a widespread regulatory crackdown on what One Road” infrastructure invest- is seen as the excessive use of universal life prod- ment plan to deepen its links with ucts by some insurers, and as China’s central economies throughout Asia and be- leadership moves to curb risk in the fi nancial sys- yond. tem. A consortium led by China’s A handful of insurance fi rms, led by Anbang, CITIC Group has proposed taking a have issued higher-yielding products to raise 70%-85% stake in the $7.3bn deep funds to acquire stakes in market-listed compa- sea port, according to negotiat- nies. ing documents seen by Reuters and three people familiar with the talks Anbang Life, a key part of Anbang between the Chinese state-owned Insurance Group, was cited for ‘disrupting conglomerate and Myanmar’s civil- market order’ by designing a product that ian government. bypassed regulations aimed at curbing The size of the proposed Chinese growth of short-term, risky universal life stake is substantially larger than insurance products, the China Insurance the 50/50 joint venture proposed Regulatory Commission said by Myanmar late last year, an off er rejected by CITIC, said two people Over the last two years, Anbang has taken sig- involved in the talks. nifi cant stakes in a handful of listed banks and Well-placed sources told Reu- property fi rms, including China Minsheng Bank- ters last month that China had sig- ing Corp, Agricultural Bank of China Ltd, Gem- nalled it was willing to abandon the dale Corp, and China Vanke Co Ltd. controversial $3.6bn Myitsone dam A jetty for oil tankers is seen on Madae island in Myanmar. A consortium led by China’s CITIC Group has proposed taking a 70%-85% stake in the $7.3bn Other insurers have been caught up in the project in Myanmar, but would be deep sea port in Myanmar, crackdown. In December, CIRC suspended Fore- looking in return for concessions on sea Life, a unit of fi nancial conglomerate Baoneng other strategic opportunities in the Negotiations between Myanmar “Some people worry that China be split between Myanmar and the social impact studies would soon be Group, from selling universal life products until Southeast Asian nation – including and CITIC, which sources said were would have the power to do anything CITIC-led consortium in propor- conducted by Myanmar’s environ- it addressed problems managing customer ac- the Bay of Bengal port. set to start next week in the coun- they want and control the project if tion to the stake agreed, the two mental ministry, with construction counts and information. Kyauk Pyu is important for China try’s commercial hub Yangon, come it owns 85%,” said the person, who is sources said. due to start in 2018. Anbang Life intentionally designed a long-term because the port is the entry point amid a Chinese diplomatic push to familiar with the thinking of policy- Soe Win, who leads the manage- The economic zone faces oppo- annuity insurance product as a two-year product, for a Chinese oil and gas pipeline forge better ties with its resource- makers in Myanmar. ment committee of the special eco- sition from activists and residents circumventing rules, CIRC said in yesterday’s no- which gives it an alternative route rich neighbour. “But Myanmar doesn’t have other nomic zone, confi rmed negotiations who criticised the tender process tice. Materials for another Anbang Life product for energy imports from the Middle Myanmar’s leaders have tradi- options,” the person added, citing would start next week but declined and said the development would lacked the signature of the company’s chief actu- East that avoids the Malacca Straits, tionally been wary of domination by the Myanmar government’s fi nan- to comment on the deal, citing the have a negative impact on local peo- ary, in violation of rules, the notice said. a shipping chokepoint. China. But the country last month cial constraints. confi dentiality of the talks. ple. Around 20,000 people are at A spokesman for Anbang Insurance Group, the The port is part of two projects, signed an agreement that will see The source did not specifi cally The nearly $10bn Kyaukphyu risk of losing their homes and liveli- parent company of Anbang Life, did not immedi- which also include an industrial oil pumped through the pipeline mention a quid pro quo over the My- Special Economic Zone, which hoods due to land acquisition for the ately comment when contacted by Reuters. park, to develop a special economic from Kyauk Pyu across Myanmar to itsone dam. Myanmar’s government has said zone, according to the International The regulator instructed Anbang to rectify its zone in Myanmar’s western Rakhine southwestern China, while leader A second source close to Myan- would create an economic hub akin Commission of Jurists, a human product development and management. State. Aung San Suu Kyi is due to visit Bei- mar’s policymakers corroborated to Singapore covering 4,289 acres, rights watchdog. “(The regulator) is urging insurers, especially CITIC was awarded the lead role jing for a summit on “One Belt, One that account, adding that Myan- is part of Myanmar’s plan to boost CITIC’s consortiums include life insurers, to focus on long-term value creation in both initiatives in 2015. Road”, President Xi Jinping’s signa- mar has agreed to choose from one the economy in one of its poorest China Harbor Engineering Com- business by selling more protection component Beijing-based CITIC, China’s ture policy, in mid-May. of four options proposed by CITIC, regions. pany Ltd, China Merchants Hold- products and take a more prudent investment biggest and oldest fi nancial con- One of the sources, who declined leaving it with a stake ranging from A second consortium led by CIT- ings, TEDA Investment Holding and strategy,” said Qian Zhu, an insurance analyst at glomerate, did not respond to sever- to be named, said CITIC was in the 15% to 30%. IC has also proposed taking a 51% Yunnan Construction Engineering Moody’s. al requests for comment yesterday. “driving seat” on the port project, “Myanmar has no other choice stake in the $2.3bn industrial park, Group. “It’s benefi cial to the industry in the long run, China’s Foreign Ministry did not and that Myanmar was unlikely to but the four options given by CIT- an off er Myanmar has agreed to, said The only non-Chinese state- but could cause some growing pains for the in- immediately respond to a faxed re- ask for a stake of more than 30% due IC,” said the second person, who is the two people involved in the talks. owned company involved is Thai- dustry in the short term.” quest for comment. to opposition from the Chinese fi rm. involved in the talks. Funding would Soe Win said environmental and land’s Charoen Pokphand Group.

BHP Billiton under Investors rush to develop rental pressure to sell shale Reuters boost production. It has Melbourne also highlighted its success in slashing costs by 64% in the Black Hawk region over housing as China prices surge BHP Billiton is facing the past four years. pressure from two activist “On many measures shareholders over its $20bn we’re one of, if not the, Reuters many friends, so I thought living with oth- splurge on US shale oil and lowest-cost operator,” BHP Hong Kong er young people would be more fun. gas fields, but may resist CEO Andrew Mackenzie I like to party,” said Chen, who pays calls to dump the business told investors in April, 2,800 yuan a month, or around 20% of his just as oil prices are sliding. defending its rejection of a hina’s sky-high apartment prices salary, for an apartment operated by China Investors grumble that proposal by fund manager and its footloose generation of mil- Vanke, the country’s No 2 developer by while BHP Billiton is a good Elliott Management for the Clennials are fuelling demand for sales. operator in deepwater oil company to spin off its US rental apartments, driving investment by His en-suite room is around 25 square and gas, its shale business, oil and gas assets. foreign private equity funds and Chinese metres. It fi ts a double-sized bed and small first acquired in 2011, has BHP can take comfort in real estate developers. wardrobe, but has no kitchen. been a capital drain and kudos from energy consult- The country has been very much a “To buy a two-bedroom unit you’d need shareholders would be bet- ants Wood Mackenzie, home-owner’s market since opening up to at least 1mn yuan for a downpayment and ter off with a sale. which said the company the outside world in the 1980s and its home I can’t aff ord it now,” Chen said, adding But now may not be the has among the lowest ownership ratio is now one of the highest in that a short-term lease was preferable as right time. breakeven costs among the world at about 90%. he may have to relocate to Shanghai after a BHP says it sees petro- shale operators in one of But that is beginning to change as home few years. leum as a core business, the richest parts of the Per- price gains far outpace income growth, The investors are being helped by a gov- including most of the shale mian Basin, $30.20 a barrel. making the prospects of buying a home an ernment-backed drive to support rental operations. “BHP is active in the swap increasingly distant dream for many young supply in a bid to rein in property prices “The risk is doing it for the market, and we expect Chinese. and satisfy housing demand. wrong reasons – because its operational success to Newer generations of tech-savvy work- The authorities have allowed com- people are telling you do it – open doors with swap and ers also want to be able to move quickly mercial properties to be redeveloped into and getting out quickly. strategic partners,” Wood without being tied down by a property if a rental apartments, and encouraged banks We’re at $40 oil. Mackenzie said in a report, better job opportunity opens up in another to provide fi nancing to rental apartment It’s not necessarily referring to the market for city. A typical two-bedroom new home in A unit is seen at a youth apartment by Chinese developer Mofang in Shenzhen. China has companies. the greatest time to be trading acreage with other Beijing costs around 6mn yuan ($870,000), been very much a home-owner’s market since opening up to the outside world in the “The biggest challenge is to turn rental contemplating that,” said operators. about 69 times the average per capita dis- 1980s and its home ownership ratio is now one of the highest in the world at about 90%. apartments into a sustainable and scal- Brenton Saunders, an Its less attractive Fayet- posable income in the city, much higher able business in China, from development analyst at BT Investment teville acreage, valued at than the ratio of less than 25 times for New Properties are betting big on the so-called Still, the industry is in the early ramp-up to exit,” said Charles Ma, China managing Management, which owns $919mn on its books at the York City. youth apartment market, which is aimed investment stages in China and the profi ts director of Greystar, which manages more BHP shares. end of 2016, is back up for It is a similar tale in many of the larg- primarily at 20-40 year-olds. are yet to fl ow into accounts in a mean- than $17bn in assets globally. Australian boutique sale. est Chinese cities, such as Shanghai and Vanke aims to add 150,000 rental units to ingful way. And there may be plenty more He cited high land and fi nancing costs, manager Tribeca Partners BT’s Saunders said one Shenzhen. US private equity fi rm Warburg the market in the coming two years, while rental development to come. and taxes as issues for developers getting estimated BHP could fetch way BHP could divest Pincus is among the foreign investors who Longfor is looking at growing by 15,000 Realtor Lianjia Real Estate forecasts that into the rental market. $10bn for its shale assets, shale while retaining have taken note. units each year. the sector will almost triple to $420.5bn in For major foreign investors it is also diffi - based on recent deals done exposure to a potential It has invested $500mn with China’s Targeting young professionals means annual rental payments by 2025. cult to fi nd developments of a size – worth in the Permian and Eagle recovery in oil prices Avic Trust in so-called “white-collar landlords can’t charge high rents. When David Chen, 29, relocated a year $50mn or more – that would make sense. Ford shale regions that would be to vend the shale apartment” manager Mofang, which start- Developers, such as Vanke and Longfor, ago to an advertising company in the And in some places, there are already implied prices of $30,000 assets to a well-regarded ed its business in 2010 and now operates are mostly leasing or buying under-utilised southern city of Shenzhen – one of the signs of a glut of rental apartments. to $40,000 per net acre. shale operator in return 30,000 rental units across the country. assets such as hotels, offi ces and ware- country’s most expensive property mar- “In China, if something is good then However BHP has said for an equity stake in that Another rental apartment platform, houses and redeveloping them into rental kets – he decided a “youth apartment” was everyone jumps in,” said Ma.”For example, it wants to hold on to its company, which it could Mogoroom, has attracted investment from units as the returns are much higher than his best bet for housing. over the past year there are many ‘youth Permian acreage, where sell down the track. South Korean venture capital fi rm KTB if they bought land and built a new devel- Many youth apartments feature a “co- apartments’ built across cities and the oc- it has been consolidating Other operators active Network. opment. living” theme with a common space where cupancy rate is often not too high. its position by picking up in areas where BHP holds Also Greystar Real Estate Partners LLC, Vanke said in this model, gross profi t tenants can socialise after work. The sudden boost in supply may create high grade acreage and is acreage include Cono- the largest apartment manager in the margin for their rental apartments is in the They also have live-in managers who or- a glut in the short term, but that creates looking to trade acreage coPhillips, EOG Resources United States, says it is looking for op- 20-30% range, up to 10 percentage points ganise weekly events such as movie nights, trading opportunities and consolidation or work with companies Inc, Anadarko Petroleum, portunities in major Chinese cities. Chi- higher than its overall property develop- cooking parties, and fi eld trips. will eliminate the non-serious or small with adjoining acreage to and Marathon Oil Corp. nese developers China Vanke and Longfor ment business in 2016. “I was new to the city and didn’t have players.” Gulf Times Saturday, May 6, 2017 5 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 20,949.15 -2.32 Apple Inc 148.25 1.17 12,079,917 S&P 500 Index 2,391.80 +2.28 Microsoft Corp 68.59 -0.32 7,716,768 Nasdaq Composite Index 6,082.25 +6.92 Exxon Mobil Corp 81.84 0.24 3,982,667 S&P/Tsx Composite Index 15,572.70 +176.00 Johnson & Johnson 123.15 -0.65 1,630,638 Mexico Bolsa Index 49,453.06 +454.95 General Electric Co 29.21 0.02 5,218,881 Brazil Bovespa Stock Idx 65,768.15 +905.54 Jpmorgan Chase & Co 86.92 -0.21 3,789,252 Ftse 100 Index 7,297.43 +49.33 Procter & Gamble Co/The 86.27 -0.21 1,632,056 Cac 40 Index 5,432.40 +59.98 Wal-Mart Stores Inc 76.29 -0.07 1,841,760 Dax Index 12,716.89 +69.11 Verizon Communications Inc 46.66 1.69 7,165,213 Ibex 35 Tr 11,135.40 +122.50 Pfizer Inc 33.28 -0.51 8,169,289 Nikkei 225 19,445.70 +135.18 Visa Inc-Class A Shares 92.24 -0.42 2,649,658 Japan Topix 1,550.30 +10.53 Chevron Corp 105.16 0.33 1,999,510 Hang Seng Index 24,476.35 -207.53 Coca-Cola Co/The 43.63 -0.08 2,702,655 All Ordinaries Indx 5,863.81 -40.71 Intel Corp 36.64 -0.58 8,134,349 Nzx All Index 1,353.17 -2.35 Merck & Co. Inc. 63.55 0.27 3,272,728 Bse Sensex 30 Index 29,858.80 -267.41 Cisco Systems Inc 34.24 0.16 6,986,877 Nse S&P Cnx Nifty Index 9,285.30 -74.60 Home Depot Inc 154.87 0.01 874,431 Straits Times Index 3,229.73 +1.11 Intl Business Machines Corp 155.50 -2.24 7,301,668 Karachi All Share Index 34,144.31 +271.44 Walt Disney Co/The 111.30 0.12 2,186,853 Jakarta Composite Index 5,683.38 +13.93 Unitedhealth Group Inc 173.89 -0.07 868,948 3M Co 199.33 -0.09 664,462 Mcdonald’s Corp 143.19 -0.18 1,110,371 Nike Inc -Cl B 53.74 -1.34 5,484,835 TOKYO United Technologies Corp 121.09 0.07 1,074,195 Boeing Co/The 184.40 0.73 969,251 Company Name Lt Price % Chg Volume Goldman Sachs Group Inc 226.13 -0.20 1,136,341 Rakuten Inc 1,135.50 0.22 6,347,700 American Express Co 78.12 -0.27 982,871 Kyocera Corp 6,520.00 1.68 2,064,300 Du Pont (E.I.) De Nemours 80.49 2.16 1,163,355 Nissan Motor Co Ltd 1,076.50 1.13 8,600,300 Caterpillar Inc 99.74 0.35 1,407,520 Hitachi Ltd 623.50 -0.02 13,068,000 Travelers Cos Inc/The 120.91 0.08 551,031 Takeda Pharmaceutical Co Ltd 5,376.00 0.50 1,538,300 Jfe Holdings Inc 1,894.50 1.42 2,923,900 Ana Holdings Inc 326.70 -0.61 16,037,000 FTSE 100 Mitsubishi Electric Corp 1,609.00 -0.19 5,753,600 Sumitomo Mitsui Financial Gr 4,153.00 0.73 4,566,400 Company Name Lt Price % Chg Volume Honda Motor Co Ltd 3,235.00 -0.31 5,820,700 Fast Retailing Co Ltd 36,000.00 0.95 526,100 Wpp Plc 1,677.00 -0.83 5,890,520 Ms&Ad Insurance Group Holdin 3,681.00 0.00 1,549,000 Worldpay Group Plc 314.20 1.52 5,524,497 Kubota Corp 1,756.50 0.49 2,454,500 Wolseley Plc 5,065.00 0.70 655,907 A visitor passes a London Stock Exchange sign inside the main atrium of the LSE headquarters. London’s FTSE 100 index Seven & I Holdings Co Ltd 4,745.00 1.28 2,492,500 Wm Morrison Supermarkets 239.10 2.01 8,840,194 closed up 0.7% at 7,297.43 points yesterday. Inpex Corp 1,067.00 0.66 3,944,500 Whitbread Plc 4,065.00 -0.05 414,498 Resona Holdings Inc 598.10 0.83 11,437,800 Vodafone Group Plc 204.95 0.61 45,507,493 Asahi Kasei Corp 1,073.50 0.47 2,808,000 United Utilities Group Plc 995.50 0.15 1,092,850 Kirin Holdings Co Ltd 2,172.00 -1.70 3,341,500 Unilever Plc 3,988.00 -0.42 1,665,642 Marubeni Corp 693.00 0.10 6,678,900 Tui Ag-Di 1,186.00 1.89 1,926,449 Mitsubishi Ufj Financial Gro 715.90 0.59 47,057,700 Travis Perkins Plc 1,681.00 1.63 935,673 Mitsubishi Chemical Holdings 886.00 0.44 4,465,500 Tesco Plc 179.45 1.59 23,218,506 Fanuc Corp 22,520.00 1.01 903,200 Europe stocks higher on US Taylor Wimpey Plc 196.00 -0.41 11,671,642 Daito Trust Construct Co Ltd 16,585.00 1.04 564,200 Standard Life Plc 379.10 0.88 3,688,851 Otsuka Holdings Co Ltd 5,237.00 2.25 958,700 Standard Chartered Plc 717.50 0.34 7,446,051 Oriental Land Co Ltd 6,529.00 1.38 1,089,200 St James’s Place Plc 1,169.00 0.86 836,790 Sekisui House Ltd 1,862.00 0.70 2,113,700 Sse Plc 1,424.00 1.28 4,161,557 jobs report, French election Secom Co Ltd 8,188.00 0.85 617,900 Smith & Nephew Plc 1,306.00 2.83 8,639,345 Tokio Marine Holdings Inc 4,751.00 0.57 1,409,800 Sky Plc 992.50 0.00 1,856,362 Aeon Co Ltd 1,679.50 1.36 2,349,600 Shire Plc 4,653.50 -0.15 2,048,594 But Oanda analyst Craig Erlam was French centrist Emmanuel Macron Mitsui & Co Ltd 1,599.00 1.11 5,062,400 AFP Severn Trent Plc 2,373.00 0.76 527,708 more cautious, described the jobs data sought to cement his frontrunner sta- Kao Corp 6,128.00 0.38 1,230,900 London Schroders Plc 3,220.00 -0.62 273,696 as “mixed.” tus on the last day of campaigning for Dai-Ichi Life Holdings Inc 1,931.00 0.49 5,666,100 Sainsbury (J) Plc 265.00 2.16 13,320,932 Mazda Motor Corp 1,603.00 0.98 5,729,600 “The jobs report... will likely do the weekend’s election run-off after a Sage Group Plc/The 700.00 0.36 3,089,390 Komatsu Ltd 2,935.50 -0.86 3,450,800 uropean stocks ended the week nothing to either encourage or de- bruising and divisive race. Sabmiller Plc 0.00 0.00 - West Japan Railway Co 7,411.00 0.03 629,400 higher yesterday after key US ter the Fed when it comes to deciding Pro-European Macron and far-right Rsa Insurance Group Plc 621.00 0.32 4,693,763 Murata Manufacturing Co Ltd 15,800.00 0.13 956,200 jobs data came in better than ex- whether to raise interest rates next anti-immigration candidate Marine Royal Mail Plc 413.50 1.12 2,361,541 E Kansai Electric Power Co Inc 1,525.00 1.67 4,019,000 Royal Dutch Shell Plc-B Shs 2,117.50 2.69 7,208,805 pected and as investors readied them- month,” he said. Le Pen have off ered starkly diff erent Denso Corp 4,833.00 2.05 1,704,500 Royal Dutch Shell Plc-A Shs 2,067.50 2.10 6,789,104 selves for the fi nal round of the French After a slow March, when hiring visions for France during a campaign Sompo Holdings Inc 4,272.00 0.56 851,700 Royal Bank Of Scotland Group 269.00 0.75 10,535,787 Daiwa House Industry Co Ltd 3,343.00 1.46 1,658,600 presidential election at the weekend, likely was held down by a winter storm, that has been closely watched around Rolls-Royce Holdings Plc 853.50 5.05 9,392,524 Jxtg Holdings Inc 502.70 1.64 12,464,300 traders said. the US economic engine added an es- the world. Rio Tinto Plc 2,979.00 2.37 4,795,903 Nippon Steel & Sumitomo Meta 2,525.50 1.16 2,748,000 On the other side of the Atlantic, timated 211,000 net new positions in On the corporate front yesterday, Rexam Ltd 0.00 0.00 - Suzuki Motor Corp 4,712.00 0.86 1,655,500 British publisher Pearson sent its Relx Plc 1,596.00 0.31 2,850,902 the solid US jobs report boosted the April while the jobless rate fell a tenth Nippon Telegraph & Telephone 4,839.00 0.64 3,052,000 Reckitt Benckiser Group Plc 7,170.00 0.08 1,444,701 S&P 500 and Nasdaq indices in New to 4.4%, the lowest since May 2007, share price rocketing after the group Ajinomoto Co Inc 2,179.50 0.65 1,338,600 Randgold Resources Ltd 6,870.00 4.33 920,412 York, but the Dow dipped on news the Labour Department reported. launched a new cost-cutting plan and Mitsui Fudosan Co Ltd 2,528.00 3.06 4,583,200 Prudential Plc 1,759.00 0.03 4,046,563 that Warren Buffett had sold shares The data “constituted a supportive put its US schoolbooks division up for Ono Pharmaceutical Co Ltd 2,303.00 0.11 1,857,100 Provident Financial Plc 3,194.00 -1.78 248,345 Daikin Industries Ltd 10,745.00 -0.51 948,200 of IBM. factor for the markets today, coming sale. Persimmon Plc 2,391.00 0.17 861,705 Bank Of Yokohama Ltd/The 0.00 0.00 - “Today’s employment report should out higher than forecast,” said Frederic In afternoon trade, Pearson shares Pearson Plc 739.50 12.39 17,163,655 Toray Industries Inc 989.60 0.95 3,636,600 have brushed aside any concerns about Tassin, asset manager at Aviva Inves- soared 11.5% to 733.5 pence on Lon- Paddy Power Betfair Plc 8,080.00 0.12 380,214 Astellas Pharma Inc 1,434.50 0.21 8,108,600 Old Mutual Plc 192.10 0.89 11,039,880 the health of the US labour market that tors France. don’s FTSE 100 index, which was up Bridgestone Corp 4,702.00 0.73 2,117,800 Next Plc 4,234.00 1.17 599,973 may have come up after the disap- And looking ahead to the French 0.7% at 7,297.43 points. Sony Corp 3,853.00 -0.52 6,540,300 National Grid Plc 1,020.50 0.59 5,413,118 pointing payroll number last month,” presidential election on Sunday, “at In Frankfurt, the DAX 30 was up Hoya Corp 5,394.00 0.71 769,600 Mondi Plc 2,044.00 1.29 1,678,375 said UniCredit analyst Harm Bandholz. least the probability that Emmanuel 0.6% at 12,716.89 points, in Paris, the Sumitomo Mitsui Trust Holdin 3,910.00 0.36 1,972,600 Merlin Entertainment 505.00 -1.56 1,686,494 Japan Tobacco Inc 3,735.00 0.24 2,325,200 The jobs report “corroborates the Macron will be elected is high, so we’ve CAC 40 was up 1.1% at 5,432.40 points Mediclinic International Plc 807.50 -0.80 1,615,809 Osaka Gas Co Ltd 413.80 0.17 5,764,000 Fed’s and our view that the growth seen an easing of the risk premium and Marks & Spencer Group Plc 375.20 4.95 17,203,011 Sumitomo Electric Industries 1,868.50 1.85 3,605,300 slowdown in the fi rst quarter was tran- since the fi rst round of voting” two the EURO STOXX 50 was 0.9% up at London Stock Exchange Group 3,390.00 0.98 1,607,075 Daiwa Securities Group Inc 686.90 1.66 7,094,000 Lloyds Banking Group Plc 70.00 0.00 173,953,285 sitory,” the expert said. weeks ago, the expert said. 3,658.79 points, at close. Softbank Group Corp 8,478.00 0.25 3,859,600 Legal & General Group Plc 250.80 0.04 15,027,634 Mizuho Financial Group Inc 206.70 0.73 90,707,600 Land Securities Group Plc 1,110.00 0.18 2,600,346 Nomura Holdings Inc 681.80 1.93 23,119,200 Kingfisher Plc 337.40 2.68 10,273,617 HONG KONG HONG KONG Daiichi Sankyo Co Ltd 2,489.00 0.22 2,046,600 Johnson Matthey Plc 3,119.00 1.04 496,513 Subaru Corp 4,283.00 1.01 2,905,100 Itv Plc 201.80 -2.61 20,000,864 Ntt Docomo Inc 2,680.50 0.11 3,248,300 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intu Properties Plc 269.70 -0.63 4,020,289 Sumitomo Realty & Developmen 3,078.00 2.09 2,417,000 Intl Consolidated Airline-Di 603.50 5.51 21,516,409 Aluminum Corp Of China Ltd-H 3.54 -3.28 39,148,000 Hong Kong & China Gas 15.46 -0.64 9,641,377 Sumitomo Metal Mining Co Ltd 1,493.50 0.37 2,904,000 Intertek Group Plc 4,160.00 0.00 229,460 Bank Of East Asia Ltd 32.15 -1.08 903,703 Hong Kong Exchanges & Clear 189.30 -0.68 4,673,356 Orix Corp 1,725.00 1.32 5,107,500 Intercontinental Hotels Grou 4,120.00 -1.41 1,043,447 Bank Of China Ltd-H 3.68 -1.08 323,862,158 Hsbc Holdings Plc 66.50 0.23 46,050,681 Asahi Group Holdings Ltd 4,220.00 -0.50 1,331,200 Inmarsat Plc 761.00 -7.70 4,760,326 Bank Of Communications Co-H 5.78 -1.87 31,226,586 Hutchison Whampoa Ltd 0.00 0.00 - Keyence Corp 45,740.00 0.22 308,400 Informa Plc 660.00 0.38 4,875,733 Belle International Holdings 6.06 0.00 85,442,456 Ind & Comm Bk Of China-H 4.96 -1.39 250,788,265 Nidec Corp 10,260.00 1.79 1,201,600 Imperial Brands Plc 3,627.00 -0.07 2,317,358 Boc Hong Kong Holdings Ltd 32.40 -0.61 7,380,618 Li & Fung Ltd 3.24 -0.61 25,409,204 Isuzu Motors Ltd 1,545.00 1.41 3,294,500 Hsbc Holdings Plc 658.60 -0.78 28,020,133 Cathay Pacific Airways 11.14 -0.18 3,219,000 Mtr Corp 45.10 -0.77 4,099,161 Unicharm Corp 2,702.00 -0.06 823,400 Hargreaves Lansdown Plc 1,388.00 -1.07 553,457 Ck Hutchison Holdings Ltd 97.10 -0.61 3,722,775 New World Development 9.45 -0.74 12,537,020 Shin-Etsu Chemical Co Ltd 9,598.00 -0.64 1,220,300 Hammerson Plc 588.00 -0.08 2,295,267 China Coal Energy Co-H 3.52 -4.86 37,728,800 Petrochina Co Ltd-H 5.24 -2.42 150,807,498 Smc Corp 31,410.00 -0.85 196,900 Glencore Plc 289.05 4.27 57,474,747 China Construction Bank-H 6.16 -1.75 235,969,421 Ping An Insurance Group Co-H 42.95 -1.38 31,811,460 Mitsubishi Corp 2,437.50 0.49 4,674,600 Glaxosmithkline Plc 1,588.00 -0.03 6,441,594 China Life Insurance Co-H 22.90 -2.55 49,035,264 Power Assets Holdings Ltd 70.90 0.35 4,598,304 Nintendo Co Ltd 28,355.00 0.14 1,468,600 Gkn Plc 359.40 0.42 6,626,144 China Merchants Port Holding 21.60 -1.14 6,122,663 Sino Land Co 13.00 -1.52 3,813,737 Eisai Co Ltd 5,832.00 -0.10 713,800 Fresnillo Plc 1,419.00 3.96 1,411,591 China Mobile Ltd 84.30 0.72 26,905,620 Sun Hung Kai Properties 116.60 -1.27 2,999,077 Sumitomo Corp 1,511.50 0.60 3,233,600 Experian Plc 1,693.00 0.71 1,115,869 China Overseas Land & Invest 21.90 -1.79 35,998,662 Swire Pacific Ltd - Cl A 74.00 -0.34 1,240,623 Canon Inc 3,750.00 0.73 5,177,800 Easyjet Plc 1,260.00 4.22 6,945,888 China Petroleum & Chemical-H 6.02 -2.75 169,136,630 Tencent Holdings Ltd 243.80 0.00 14,901,527 Japan Airlines Co Ltd 3,301.00 1.16 4,176,700 Dixons Carphone Plc 324.70 -1.04 4,400,912 China Resources Beer Holdin 18.50 0.43 5,493,542 Wharf Holdings Ltd 65.75 -0.68 2,599,243 Direct Line Insurance Group 356.40 -1.44 3,572,964 China Resources Land Ltd 20.05 -3.37 27,337,474 China Resources Power Holdin 13.70 -1.58 8,682,925 Diageo Plc 2,277.50 0.11 2,858,287 SENSEX Dcc Plc 7,340.00 0.96 142,193 China Shenhua Energy Co-H 17.84 -3.46 37,559,707 GCC INDICES Crh Plc 2,920.00 0.38 2,784,143 China Unicom Hong Kong Ltd 10.04 -0.59 45,734,400 Compass Group Plc 1,569.00 -0.13 2,982,673 Company Name Lt Price % Chg Volume Citic Ltd 11.12 -1.42 10,273,791 Indices Lt Price Change Coca-Cola Hbc Ag-Di 2,164.00 0.05 408,042 Clp Holdings Ltd 81.60 -0.24 2,772,912 Doha Securities Market Zee Entertainment Enterprise 505.60 -2.91 1,721,813 9,938.28 -17.12 Centrica Plc 198.70 0.35 37,068,292 Cnooc Ltd 8.82 -1.12 149,421,195 Saudi Tadawul Yes Bank Ltd 1,608.75 -1.11 1,063,457 6,924.08 -43.63 Carnival Plc 4,823.00 -0.62 544,847 Cosco Shipping Ports Ltd 8.43 -2.43 2,354,000 Kuwait Stocks Exchange Wipro Ltd 499.30 -0.13 566,460 6,752.79 -45.94 Capita Plc 575.00 0.79 1,926,876 Esprit Holdings Ltd 5.67 -2.24 5,229,674 Bahrain Stock Exchage Vedanta Ltd 223.75 -3.76 27,042,097 1,331.22 +0.31 Burberry Group Plc 1,626.00 1.12 1,096,243 Fih Mobile Ltd 2.66 0.00 3,746,000 Oman Stock Market Ultratech Cement Ltd 4,329.95 0.13 314,086 5,475.92 -16.50 Bunzl Plc 2,408.00 0.00 387,121 Hang Lung Properties Ltd 19.22 -1.54 4,388,968 Abudhabi Stock Market Tech Mahindra Ltd 413.00 -1.46 1,787,006 4,617.16 +35.90 Bt Group Plc 309.55 1.28 14,027,739 Hang Seng Bank Ltd 161.60 -0.43 2,083,516 Dubai Financial Market Tata Steel Ltd 433.60 -2.00 6,439,883 3,419.73 +0.67 British Land Co Plc 663.00 0.23 5,509,859 Henderson Land Development 48.40 -1.22 2,642,236 Tata Power Co Ltd 83.40 0.48 2,648,162 British American Tobacco Plc 5,287.00 0.92 2,104,189 Tata Motors Ltd 419.60 -3.87 10,901,258 Bp Plc 451.35 1.47 39,322,535 Tata Consultancy Svcs Ltd 2,320.50 -0.41 1,012,774 Bhp Billiton Plc 1,140.00 2.06 10,725,370 Sun Pharmaceutical Indus 630.20 -0.21 2,994,829 Berkeley Group Holdings/The 3,311.00 1.75 611,112 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 296.00 -1.02 38,122,868 Barratt Developments Plc 590.50 0.85 3,405,793 Reliance Industries Ltd 1,328.25 -2.19 3,892,299 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Barclays Plc 206.35 -2.60 57,446,615 Punjab National Bank 174.30 -2.87 28,443,649 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 647.50 1.89 5,934,987 Power Grid Corp Of India Ltd 209.00 -0.78 2,885,509 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 915.50 1.38 1,891,611 Oil & Natural Gas Corp Ltd 183.80 -2.70 8,876,598 this data.” Aviva Plc 532.00 -0.09 5,287,412 Ntpc Ltd 159.70 -1.81 2,174,024 Astrazeneca Plc 4,605.50 -0.94 1,992,167 Maruti Suzuki India Ltd 6,654.15 0.22 359,010 Associated British Foods Plc 2,772.00 -0.82 1,047,940 Mahindra & Mahindra Ltd 1,321.25 -1.02 940,596 Ashtead Group Plc 1,610.00 1.83 2,442,431 Lupin Ltd 1,252.35 -0.74 911,263 CURRENCIES Arm Holdings Plc 0.00 0.00 - Larsen & Toubro Ltd 1,724.40 -0.42 1,095,376 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Antofagasta Plc 769.00 2.26 4,332,938 DINAR DINAR Kotak Mahindra Bank Ltd 908.30 0.31 2,254,974 Anglo American Plc 1,030.50 2.95 10,050,223 Itc Ltd 277.15 -1.44 4,647,106 Admiral Group Plc 2,087.00 -1.83 904,507 Infosys Ltd 931.50 -0.66 2,323,947 3I Group Plc 817.00 -0.79 1,606,990 Indusind Bank Ltd 1,408.05 -0.86 1,905,860 #N/A 0.00 0.00 - Idea Cellular Ltd 82.00 -1.62 7,733,761 Icici Bank Ltd 298.55 0.25 48,970,420 TOKYO Housing Development Finance 1,546.85 -1.12 2,432,651 Hindustan Unilever Ltd 953.90 -0.29 654,811 Hindalco Industries Ltd 185.80 -3.46 21,039,108 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 3,376.55 -0.56 204,608 East Japan Railway Co 10,090.00 -0.20 823,600 Hdfc Bank Limited 1,532.20 -0.17 794,364 Itochu Corp 1,627.50 1.94 13,108,000 Hcl Technologies Ltd 829.60 1.42 974,705 Fujifilm Holdings Corp 4,174.00 0.22 1,537,800 Grasim Industries Ltd 1,192.10 -0.94 1,772,144 Yamato Holdings Co Ltd 2,496.50 -2.31 4,042,400 Gail India Ltd 418.80 -2.31 4,541,103 Chubu Electric Power Co Inc 1,446.50 0.49 2,103,700 Dr. Reddy’s Laboratories 2,603.00 -0.12 161,082 Mitsubishi Estate Co Ltd 2,201.00 2.63 4,134,200 Coal India Ltd 278.50 -0.62 5,473,022 Mitsubishi Heavy Industries 451.50 0.78 17,530,000 Cipla Ltd 549.95 0.00 920,128 Toshiba Corp 243.00 3.93 208,083,000 Cairn India Ltd 285.35 0.00 26,579,537 Shiseido Co Ltd 3,006.00 -0.17 1,286,200 Bosch Ltd 23,453.40 1.09 18,717 Shionogi & Co Ltd 5,853.00 1.33 876,100 Bharti Airtel Ltd 344.75 -0.36 1,620,383 Tokyo Gas Co Ltd 519.80 -0.59 8,856,000 Bharat Petroleum Corp Ltd 724.75 -0.92 2,693,777 Tokyo Electron Ltd 14,795.00 0.68 2,210,400 Bharat Heavy Electricals 172.80 -1.06 4,292,140 Panasonic Corp 1,339.00 0.11 6,374,200 Bank Of Baroda 187.40 -4.27 29,678,413 Fujitsu Ltd 756.90 0.53 20,782,000 Bajaj Auto Ltd 2,887.65 -1.87 211,850 Central Japan Railway Co 18,635.00 0.38 315,200 Axis Bank Ltd 504.50 -2.77 10,050,152 T&D Holdings Inc 1,667.00 0.30 1,772,900 Asian Paints Ltd 1,146.80 1.25 1,663,992 Toyota Motor Corp 6,143.00 1.67 5,943,200 Ambuja Cements Ltd 246.55 1.09 2,739,463 Kddi Corp 2,956.50 -0.44 3,905,600 Adani Ports And Special Econ 344.95 1.62 8,806,502 Nitto Denko Corp 8,947.00 0.69 975,100 Acc Ltd 1,660.15 2.22 630,482 Gulf Times 6 Saturday, May 6, 2017 BUSINESS/LEISURE This guilt-free ice cream is a cult hit, thanks to Instagram

Bloomberg and respond to hundreds of social me- tling Union Square only had a half doz- carried by grocers nationwide. The av- New York dia posts about ice cream each day. en of the company’s 17 fl avours in stock erage American eats 22 pounds of ice “It’s our philosophy to reply to during a recent visit. Lemon Cake and cream annually, according to the In- anyone and everyone who makes a Black Cherry are the hardest-to-fi nd ternational Dairy Foods Association, or a trek through Big Bend Na- post about us,” said Ryan Bouton, the fl avours, the company said. which is equivalent to between 22 and tional Park in Texas, professional company’s director of communica- Halo Top Instagram is peppered 33 pints, depending on how tightly Fphotographer Jay Kazen brought tions. With more than 700mn users, with posts from people showing off they are packed. That’s roughly two all the necessities. Tent. Sleeping bag. Instagram has become a platform for their “haul,” a multiple-pint purchase pints per month. Halo Top custom- Canon 5DS. Four pints of Halo Top ice hawking everything from corsets to in which some enthusiasts can clear ers, however, eat much more than that, cream. laxatives. While many brands pay in- out a store’s stock. Some boast about typically purchasing seven to eight Since Kazen, 27, fi rst discovered fl uencers to promote their products, their quest driving store to store. “Part pints at a time, Woolverton said. “Peo- the low-calorie, high-protein treat, Halo Top says it has never paid for a of it is fun,” said Kyle Lowry, 34, from ple eat it every day, every other day,” he he rarely goes a day without some. post. Nonetheless, the hashtag “Halo Tulsa, Okla. “It’s like, when are they said, citing consumer research. “Liter- He buried the pints at the bottom of a Top” has been used close to 100,000 going to have it, and what fl avours are ally, the stores aren’t equipped to have cooler packed with dry ice to survive times, and the company’s account has they going to have?” She and her sis- space for frozen desserts like ours.” To the heat through the 800,000-acre nearly 400,000 followers. Until re- ter, Kara, use Instagram to document help with that, the company is cre- national park. cently, it hadn’t spent a dime on tradi- the meals on their Weight Watchers ating branded freezers, Woolverton “I’m kind of addicted,” he said. tional advertising—just some targeted diet. When they discovered Halo Top said. The lack of advertising was also Kazen Instagrammed several pic- digital ads on social media. counted for only a handful of the pro- a function of distribution: The com- tures of himself eating Halo Top in Since hitting the shelves in 2012, Los gram’s points, they would head out pany didn’t want to make big media the wilderness, sandwiched between Angeles-based Halo Top has exploded on excursions just to fi nd pints, often purchases if the product wasn’t readily stunning shots of desert landscapes. in popularity, with sales increasing leaving stores empty handed. But on available in all markets. Now that Halo The shots were so beautiful, they al- 2,500% last year alone, hawking about Behind the scenes at Halo Top Creamery, more than a dozen communications a recent trip to Wal-Mart, Kara came Top is available more or less nation- most looked like an advertisement. 17mn pints. (For comparison, Ben & and marketing staffers create new digital content, develop the brand’s voice across a freezer packed with the ice wide, the company has started to buy The post garnered more than 1,000 Jerry’s sold more than 150mn pints, and respond to hundreds of social media posts about ice cream each day. cream. Her Instagram post racked up more-traditional advertising, such as likes—including one from the brand. according to a Ben & Jerry’s spokes- more than 500 likes. “If it’s not at your radio spots, podcasts, and billboards. “That’s pretty cool,” he said of the woman, citing Nielsen data collected a relatively guilt-free treat, made from They compare notes on fl avours, lobby main grocery store, you have to go out But they expect the buzz to continue company’s response. last year.) erythritol, a calorie-free sugar alcohol, grocery stores to carry the product, and of your way to fi nd it,” Kyle Lowry said. in digital communities, as customers That engagement is no accident. Be- Halo Top has won taste-test bat- Stevia, milk protein, plant fi bre, and share leads on where to fi nd the treat, Halo Top founder Justin Woolver- banter over their favourite fl avours. hind the scenes at Halo Top Creamery, tles and even led one brave soul to eat egg whites. Most of the brand’s growth which is often sold out. The product ton insists it’s not a marketing ploy. “We’d love to say it’s because of our more than a dozen communications just the ice cream, and nothing else, has been through word of mouth, par- can be tough to fi nd in grocery aisles, He says stores just didn’t expect cus- genius marketing,” Woolverton said. and marketing staff ers create new dig- for 10 days. It tastes like ice cream, ticularly among Instagram users in and the hunt is part of its allure. Even tomers to buy so many pints at a time, “But I think Halo Top really does ital content, develop the brand’s voice but at around 300 calories a pint, it’s fi tness and weight-loss communities. Whole Foods in New York City’s bus- and until recently, the ice cream wasn’t tend to sell itself.”

Sudoku Adam

Pooch Cafe

Sudoku is a puzzle Weekly’s Solutions based on a 9x9 grid. The grid is also divided into nine (3x3) boxes. You are given a selection of values and to complete the puzzle, you must fill the grid so that every column, every row and every 3x3 box contains the digits 1 to 9 and none is repeated.

Super Cryptic Clues Garfi eld

ACROSS Bound And Gagged 1. What happens when you shake a plum DOWN tree in Africa? (8,5) 2. Ask for one quarter the amount of paper 8. Ask again to have a search (7) (7) 9. Someone reaching over to get a tool (7) 3. Stand before you, so to speak (3) 11. The man at the o-organ (6) 4. Arise, returning to the table (4) 13. Claim a tin, somehow, has got stuck in 5. They won’t have any salts (nitre’s a variety) the pipe (8) (10) 15. Selects the best, with growth potential 6. Yet, on the other hand, it’s no loss (5) (5) 7. On the family tree is shown to be from 16. Being reformed will make better people Ealing East (7) of Noel and Ben (7) 8. Waiting for you in your hotel (4,7) 18. The church in Collier Street (7) 10. Being critical of the fast descent (7,4) 19. Call audibly for a squeeze (5) 12. Sees half the money is in Germany (5) 21. Cross the ends intricately after making a 14. Does it provide the accompaniment at a nice knot (8) tea dance? (10) 23. Quickly shuts in the crackpots again (6) 17. He’s bent on having an arbour (5) 25. She alone is free to enter the royal enclo- 18. The French girl and myself will be going sure (7) round Chile, anyway (7) 26. Proud of oneself, having trapped a bad 20. Isn’t wrong totally, you establish (7) scoundrel (7) 22. Musical answer to ‘Are your curtains close- 28. Transmitted one by telepathy, in an emo- textured?’ (5) tional way (13) 24. Never to be turned right off and that’s flat! (4) 27. In general, we’re told, it’s popular with cows (3)

Weekly’s Solutions

Across: 1 Receivers; 8 Algeria; 9 Glad eye; Down: 1 Regaled; 2 Clanger; 3 Inept; 4 10 Starlet; 13 Lighting; 14 Cast; 16 Dirty trick; Eleanor; 5 Saws; 6 Tear; 7 Partial; 11 Ticket; 12 20 Tell; 22 Past; 24 Constables; 28 Peek; 29 Late; 15 Stab; 17 Ida; 18 Tote; 19 Tackle; 21 Lee; Brighten; 31 Thrives; 34 Prattle; 35 Arraign; 36 22 Portray; 23 Spar; 25 Scrapes; 26 Letitia; 27 Disengage. Sincere; 30 Grain; 32 Ivan; 33 Send.

Gulf Times 8 Saturday, May 6, 2017 BUSINESS

Funimation Trump threats to break up banks said to tempt Universal are not scaring Wall Street yet and Sony

Bloomberg Now in offi ce, Trump and other Bloomberg Washington administration offi cials have touted Los Angeles their support for a “21st century, modern Glass-Steagall.” espite President Donald What that means, however, is any- Look on Amazon and you’ll see why Hol- Trump’s repeated assertions body’s guess. None of Trump’s advis- lywood studios are eyeing Funimation Dthat he might support break- ers have off ered details on a plan and, Productions. ing up big banks, Wall Street isn’t in the Bloomberg News interview, the The anime company’s nine-season worried. Yet. president was similarly vague. “Dragon Ball Z” TV series sells for $231, a The calm is fuelled by signals “There are, you know, some people big sum in the shrinking DVD market. The from administration aides in private that want to go back to the old sys- complete “Seinfeld” goes for $55. Funima- meetings with industry executives to tem, right?” he said. “So we’re going tion is also US distributor for films like the discuss rolling back fi nancial rules, to look at that. We’re going to, we’re Japanese animated feature “Your Name,” a Trump priority. While not making looking at it right now as we speak.” which has generated $354mn in theatres any assurances, the offi cials aren’t Marcus Stanley, policy director at worldwide since its April release. harping on the issue, according to Americans for Financial Reform, said Both Comcast Corp’s Universal film divi- people who have participated in or that he has a hard time taking Trump sion and Sony Pictures have weighed bidding been briefed on the discussions. In at his word, especially since he has for Funimation, a big US player in Japanese- fact, the topic of reviving Glass- populated his administration with style animation, people close to the situation Steagall, the 1933 law separating in- fi nance executives. said. Universal, which has a multiyear deal vestment and commercial banking, “So far, Trump has just talked up to distribute Funimation’s DVDs, looked rarely comes up. Glass-Steagall without actually do- and decided not to proceed, said one of the Just last month, Trump’s top eco- ing anything, which is what you’d people, who asked not to be named discuss- nomic adviser Gary Cohn eased the expect from a guy who puts big banks ing internal matters. Sony is a partner in the concerns of at least two bank chief in charge of policy,” said Stanley, company’s streaming business. executives offi cers who called him whose group would like to see the law Their interest highlights the pressure after he spoke approvingly of Glass- reinstated. in Hollywood to find fresh material with a Steagall in a meeting with senators, Financial fi rms don’t seem to be loyal fan base and the potential to become a people familiar with the matter said. taking Trump’s threats at face value, multibillion-dollar film franchise. Funimation Neither Cohn nor the Treasury De- either. licences anime and dubs the products into partment’s Craig Phillips made a case The large banks didn’t say much English. The company has something any for splitting up banks when they met about re-instating Glass-Steagall in Hollywood studio would relish these days: a recently with an important fi nancial comments their trade associations growing theatrical and home-video business. lobbying group, said some attendees. have been submitting to the Treas- “Funimation has experienced annual There is also a sense in the industry A view of the Bank of America towers in New York. Trump’s most recent comments about breaking up banks have ury for its review of fi nancial regu- double-digital revenue growth since 2013 that lawmakers have little appetite to caused a few tremors as banking executives try to parse what he meant. Firms taking special notice include Bank of lations. That process was triggered for both our digital and physical collectible take on another controversial legis- America Corp, Citigroup and JPMorgan Chase & Co. by an executive order Trump signed business despite industry trends in physical lative fi ght, especially one that would earlier this year, and the department disc sales moving in the opposite direc- anger big donors. Republicans, who the London Whale who lost billions Phillips, who is leading the Treas- Street sparked a renewed interest in is slated to issue a report in early June tion,” Mike DuBoise, the company’s chief control both houses of Congress, are of dollars, or Wells Fargo & Co’s fake ury’s review of fi nancial regulations, the law, as some Democrats and oth- that lays out recommendations for operating off icer, said in an interview. particularly loath to support such a accounts fi asco Such an embarrass- met in Washington with the board of ers on the left argued that splitting eliminating rules. Funimation, based in the Dallas suburb dramatic reshaping of the banking ment could spur a wave of lawmakers the Securities Industry and Finan- up the massive fi rms would ensure Sifma, in a letter than ran some of Flower Mound, confirmed in a statement system. to support a drastic move like break- cial Markets Association, known as that they would never again threaten 260 pages, devoted about a paragraph it has received and weighed unsolicited “I’m sure it will be brought up,” ing up banks. Sifma. The two talked more about the economy or need another rescue. to the issue, arguing that the litany of interest from a variety of companies. said Bob Corker, a Republican from Spokesmen for the banks declined creating jobs and boosting lending, Congress, however, took another rules already imposed on banks make “The Funimation management team is Tennessee who sits on the Senate to comment. rather than making structural chang- tack, passing the 2010 Dodd-Frank structural reform “unnecessary.” more immediately focused on continuing Banking Committee. “But is there a Nevertheless, interviews with es to banks. Act, which piled on new capital re- Another organisation, the Clearing to create compelling experiences for anime lot of momentum around this in the about a dozen people, including ex- White House spokeswoman Na- quirements and trading rules but left House Association, barely noted the fans through physical, digital/streaming House and Senate? Currently there ecutives at most of the largest banks, talie Strom declined to comment the largest banks intact. The result, controversy at all, tucking in roughly and theatrical eff orts with goals of continu- is not.” industry lobbyists and lawyers fo- on the meeting. She said Cohn is many executives say, is stronger in- a sentence on the issue deep into a ing to expand globally and maximising Still, Trump’s most recent com- cused on fi nancial regulation, show “putting his extensive knowledge of stitutions that are able to provide 50-page draft that was recently sent shareholder value,” the company said. ments about breaking up banks, that the administration’s rhetoric is the fi nancial world to work for the large-scale lending and other serv- to its members. Japanese emigre Gen Fukunaga started made in a Bloomberg News interview often diff erent from reality. American people, and they are the ices that the biggest, global Corps The lack of verbiage alarmed some Funimation in 1994 to licence, dub and this week, have caused a few tremors For example, Cohn told the bank ones he is thinking about when for- need. of the lenders it represents, especial- market anime. The company enjoyed suc- as banking executives try to parse CEOs who contacted him after his mulating economic policy.” “Following the fi nancial crisis, the ly after Trump’s comments, and they cess late in the ’90s with “Dragon Ball Z” on what he meant. Firms taking special Senate meeting that he was sim- Cheryl Crispen, a Sifma spokes- US debated this issue and decided lobbied to change it. Greg Baer, the the Cartoon Network. It changed hands a notice include Bank of America Corp, ply responding to a question from woman, said: “We are not going to that universal banks were good for association’s president, explained couple times and in April 2011 was sold to a Citigroup and JPMorgan Chase & Co. Massachusetts Democrat Elizabeth provide a comment on any discus- the economy,” said Daniel Pinto, JP- that he was reluctant to press the is- group that included Fukunaga, the current All three have substantial footprints Warren, implying that he had been sions from our board meeting.” Morgan’s head of investment bank- sue since Congress was unlikely to chief executive off icer, and two Texas inves- in commercial and investment bank- trapped into discussing Glass-Stea- The Glass-Steagall law was part of ing, in an interview on Tuesday in ever pass a new Glass-Steagall, peo- tors: tech billionaire Darwin Deason and ing, so their business models would gall. He added that he was echo- the government’s move to regulate Riyadh. “But they needed to be prop- ple briefed on the discussions said. John Kuelbs, a former Teledyne executive. be severely impacted if they had to ing comments Trump made on the Wall Street in the wake of the 1929 erly capitalised, have proper liquidity Instead, he off ered to personally raise DuBoise is a former Universal executive. break up. campaign trail as well as backing stock market crash. It was repealed in management and a strong resolution the matter with Treasury offi cials. Funimation today has expanded into Though they still think any action language in the Republican platform 1999, spurring a wave of bank merg- mechanism. That has already hap- A Clearing House spokesman streaming via FunimationNow and theatrical is unlikely, those fi rms are telling that expresses support for the law, ers and the growth of large, one- pened.” declined to comment. But when it distribution, through Funimation Films, which their trade associations and lobby- said people briefed on the conversa- stop-shop fi nancial services compa- As a candidate, Trump was highly released its letter to the Treasury acquires anime and live action titles for US ists they shouldn’t dismiss Trump’s tions who requested anonymity. Both nies. Among the best known was the critical of Dodd-Frank, saying its earlier this week, there was new lan- audiences. The company recently teamed comments out of hand. A nightmare executives were left with the impres- combination of Citicorp and Travel- strictures have forced banks to cut guage opposing any move to break up up with Lions Gate Entertainment Corp to scenario, some fi nance executives sion that they shouldn’t fret, the ers Group that created Citigroup. back on lending. But he also praised banks. And, it was more prominently release the original anime behind the Para- say, would be another major scandal people added. The 2008 fi nancial crisis and the Glass-Steagall, a nod to his populist, placed, in the last paragraph of the mount Pictures feature “Ghost in the Shell”. like the JPMorgan trader known as Later in the month, Cohn and $700bn taxpayer bailout of Wall anti-Wall Street message. introduction. Gulf Times Saturday, May 6, 2017 9 BUSINESS EM currencies and equities China’s risk crackdown decline further

Reuters eking out a small gain on the London day. is rattling its emerging The rouble looked on track to weaken 2.5% over the week, A sharp sell-off in commodity however, its steepest weekly prices and a rise in US treasury loss in over six months. yields put main emerging Investors have also questioned currencies on track for a weekly whether the central bank’s loss yesterday, while emerging 50 basis point rate cut last municipal bond market market stocks hit a 10-day low week was too bold, said and looked set to end the week Commerzbank, ahead of a Bloomberg in the red. holiday weekend that will keep Shanghai Tumbling iron ore futures and Russian markets closed until a plunge in oil prices to five- Wednesday. month lows as Opec and other Copper producer South Africa hina’s deleveraging campaign is producers appeared to rule out saw the rand chalk up a small providing a reality check to the deeper supply cuts to reduce daily gain but the currency was Cfl edgling municipal bond market. the world’s persistent crude on track for a second week Set up in 2015 to bring transparency to glut stoked investors’ fears of losses as political tensions local-government borrowing practices, about the health of the global continued to weigh. the new market benefi ted from the per- economy. The ruling ANC party has urged ception that Beijing had the provinces’ MSCI’s emerging stocks index President Jacob Zuma to appeal backs, with yields largely on par with the fell 0.7% in a third day of losses, a High Court ruling on Thursday sovereign despite some weak municipal led by a 1% fall in Hong Kong which ordered him to explain balance sheets. and India. why he fired former finance Not anymore - a clampdown on risk Russian and Polish equities also minister Pravin Gordhan in a and record levels of debt in China’s fi nan- slipped. cabinet reshuff le that led to cial system is spurring a reassessment of Chinese mainland stocks hit sovereign debt downgrades. the market, with the premium demanded fresh three-month lows and The Turkish lira weakened 0.4% by investors on muni bonds over central were on track for their fourth on the day and was poised for a government debt surging to a record as weekly loss as concerns over weekly loss. volumes in the secondary market slide. tighter regulations added to Investors will also watch While the shift to pricing based on risk investors’ woes. developments in Nigeria, is a step toward a more mature, world- “There are clear signs of where the central bank has standard bond market, for now at least it a softening of the global said it will release more dollars poses a challenge given plans for a record business cycle, especially in to ease a liquidity crunch year of issuance. China and the US,” said Jakob and help unify the parallel “The regulatory crackdown is tighten- Christensen, head of emerging exchange rates. ing liquidity, and with limited cash, local market research at Danske Across emerging Europe, government debt is among the fi rst to be Bank. currencies were slightly ditched,” said Wu Sijie, a bond trader at “Typically as we move into stronger or flat against the euro China Merchants Bank Co in Shanghai. this phase of a softer business on the day, with the Polish zloty, “This is a reversal of last year’s situation, cycle, risky assets like emerging the Hungarian forint and the when fl ush funds competed with each markets perform poorly and Czech crown all on track for other to fi nd things to buy regardless of volatility increases, including on weekly gains. the quality.” emerging market FX.” Romania’s central bank will China’s banking regulator has spear- Russia’s rouble, closely announce its latest interest rate headed the latest moves to reduce lev- tracking oil prices, hit a seven- decision with policy makers erage in the fi nancial system, after the week low against the dollar expected to keep interest rates central bank started pushing up money- before bouncing back and at record lows. market rates late last year. Investors are also starting to price diff erent local governments according to their credit profi les, a change from the fi rst year of the muni market, when yields were basically uniform across the map. The province of Zhejiang, located southwest of fi nancial-sector power- house Shanghai, enjoys a similar cou- pon rate on its bonds as China’s central government, while Liaoning - a rust- belt region in the northeast which just emerged from a recession - paid a record premium of 58 basis points when it sold bonds last month. The two-year-old market faces a tor- just their portfolios.” Du fl agged a dou- bond market in March to check whether affi liated with the Finance Ministry. rent of issuance this year as a deadline for ble disadvantage for local-government funds raised were being used in line with “The market may be concerned about provincial governments to convert bor- bonds. On one hand, their liquidity isn’t the law, according to the 21st Century whether the ministry’s investigations rowing into muni bonds looms. as attractive as for sovereign securities. Business Herald. into off - book or contingent debt will Sales in the local-government debt But in terms of yields, they’re not as high On Wednesday, the ministry asked have consequences on the governments’ market are set to reach an all-time high as for corporate debt. local governments to stop any illegal fi - own debt.” of 1.63tn yuan ($237bn) in 2017, accord- Investors in company bonds are also nancing guarantees by the end of July, China started developing a municipal ing to a target set at China’s National watching the provinces, read more here. and to submit a report on their debt ac- bond market in 2011 after local govern- People’s Congress in March. And liquidity is tightening further - tivities by August 31. \ ments - barred by law from borrowing Deutsche Bank and Standard Char- turnover in municipal bonds fell by two- This latest move shows Beijing wants themselves - set up thousands of sepa- tered project the market will be bigger thirds in the fi rst quarter to 256bn yuan to get “stricter” when it comes to reining rate fi nancing vehicles to raise funds for than that for sovereign bonds by year- from the previous three months. in municipalities’ fi scal risks, analysts at infrastructure projects in the wake of the end. “The credit premiums may widen China’s Finance Ministry is report- Industrial Securities Co wrote in a note global fi nancial crisis. further on tightening liquidity as a result ed to have boosted its oversight of lo- Thursday. The debt accumulated by these enti- of the central bank’s monetary policy cal government debt as well, vowing in “As the market size expands quickly, ties became a symbol of China’s balloon- fi ne-tuning and the regulatory enhance- February to halt illegal borrowing, and investors have become pickier,” said ing leverage problem, which the govern- ment,” said Amanda Du, a senior analyst curbing local governments’ abilities to Zhao Quanhou, a researcher at the ment says it’s intent on addressing. The at Moody’s Investors Service in Shang- guarantee other companies’ loans. Offi - Chinese Academy of Fiscal Sciences, budget law was changed in 2014 to allow hai. “Institutional investors have to ad- cials launched an inspection of the muni a research institution in Beijing that’s provinces to borrow themselves.

Asia bourses remain weak

Sensex sheds 267 points; rupee drops are now sitting at their lowest levels since AFP Hong Kong Opec and Russia agreed in November to Agencies cut back production in a bid to raise prices. Mumbai “There’s disappointment that the Oil prices extended the previous day’s production cuts we’ve seen from Opec sharp losses yesterday, dragging energy and others has not had any impact at quities sank the most in six firms and Asian markets with them as this stage on global inventory levels,” Ric weeks as the Sensex crashed 267 investors are snaggled by fresh global sup- Spooner, a chief market analyst at CMC Epoints to close below 30,000 ply glut concerns. Markets in Sydney, told Bloomberg News. while the Nifty retreated from a life While traders are looking ahead to the “The market seems to be much further high amid a lower opening in Europe release of crucial US jobs data later in away from a balanced situation than some ahead of key US jobs data and slide in the day, the collapse in crude prices has had previously forecast. There is a pos- crude prices. dented optimism on trading floors, with sibility that oil could be headed to the low The 30-share Sensex hit a low of analysts warning about the possible ef- $40s range from here.” 29,823.60 before settling at 29,858.80, fects on the economy. The oil collapse sent Hong Kong-listed down 267.41 points, or 0.89%, its big- In Hong Kong, Hang Seng closed down PetroChina tumbling 2.4% and CNOOC gest single day fall since March 22 0.8% at 24,476.35 points and Shanghai skidding more than 1%. when it had lost 317.77 points. The — Composite fell 0.8% at 3,103.04 points In Sydney, Woodside Petroleum lost index had risen by 231.41 points in the yesterday. Tokyo market was closed for a 2.7%, Santos sank 3% and miner Rio Tinto previous session, buoyed by reforms holiday. lost 2%, with tumbling metals prices also steps in the banking and infra space. Both main contracts tumbled around 2% acting as a drag. Among the region’s main The 50-issue NSE, which sur- in Asia — following losses of almost 5% on indexes Hong Kong fell 0.8%, Shanghai passed its previous record of 9,367.15 Thursday — on fears about increased produc- ended 0.8% lower and Sydney slipped (intra-day), reached on April 27, to tion from the US, Libya and Nigeria and the 0.7% while Singapore retreated 0.2%. scale a new high of 9,377.10 (intra- Opec cartel’s commitment to extending an Taipei and Jakarta also suff ered losses. day), ended down 74.60 points, or output cut beyond a six-month agreement. Investors are now awaiting the release 0.80% at 9,285.30, mainly due to Renewed weakness in China, an of jobs figures for April, which will be profi t booking. The rupee closed at 64.37 a dollar yesterday, a level last seen on April 24, down 0.31%. expected hike in US interest rates — which closely watched for clues about the On a weekly basis, both the indi- could make dollar-denominated oil more Federal Reserve’s plans for hiking interest ces—the Sensex and the Nifty—fell 6 lakh crore mark. Sentiment soured from its Thursday’s close of 64.17. The 6.943% compared to its previous close expensive to holders of other currencies rates. The central bank is expecting to lift by 59.60 points, or 0.19%, and 18.75 largely in tune with a weak trend in rupee opened at 64.23 a dollar and of 6.968%. Bond yields and prices — and signs of slowing demand have also borrowing costs next month but with the points, or 0.20%, during the fi rst global markets following a drop in touched a high and a low of 64.23 and move in opposite directions. contributed to the dive. oil price crisis returning, policymakers week of May. crude prices and fresh fall in com- 64.39 respectively. Asian currencies were trading “Opec has been looking down the barrel could be more reticent owing to the pos- Meanwhile, President Pranab modities, including base metals, rais- Traders are also cautious as US Fed- lower. South Korean won was down so to speak, of resurgent supply from Nigeria sible impact on inflation. Mukherjee has promulgated an ordi- ing concerns about the health of the eral Reserve chair Janet Yellen and at 0.64%, Singapore dollar 0.38%, Ma- and Libya amongst Opec and of course, Speeches by Fed boss Janet Yellen and nance authorising the Reserve Bank economy, traders said. least fi ve other central bank offi cials laysian ringgit 0.26%, China Off shore American shale which combined have several of the bank’s top off icials will also to issue directives to banks to initiate Meanwhile the rupee closed near are scheduled to speak on Friday and 0.19%, Thai Baht 0.16%, Philippines completely off set the 1.8mn barrel per day be closely watched. The pound edged insolvency resolution process in the two-week lower against the US dollar, ahead of the French presidential elec- peso 0.14%, Taiwan dollar 0.1%, Chi- production cut agreement,” said Jeff rey Hal- up as it emerged the ruling Conservative case of loan default. This will provide tracking losses in the local equity and tion on Sunday. na renminbi 0.08%. ley, senior market analyst at OANDA, in a note. Party was set for a big win in local polls, a big boost to the government’s eff orts Asian currencies markets before the So far this year, the rupee has gained The dollar index, which measures “There was no light at the end of the weeks before a general election markets to tackle mounting bad loans. release of US jobs data due later. 5.53%, while foreign investors bought the US currency’s strength against tunnel for Opec and non-Opec producers... hope will provide Prime Minister Theresa The ordinance has been issued in The rupee closed at 64.37 a dollar— $6.29bn and $7.61bn in local equity major currencies, was trading at in fact, the light turned out to be the train May a more stable government going into light of the urgency to deal with the a level last seen on April 24, down and debt markets, respectively. 98.904, up 0.11% from its previous coming the other way.” Both contracts key Brexit talks. toxic loans that have crossed the Rs 0.31%, its steepest fall since April 10, The 10-year bond yield closed at close of 98.797. Gulf Times 10 Saturday, May 6, 2017 BUSINESS Louvre fund won’t buy more Europe stocks until French vote

Bloomberg “European equities are less ex- Gaboriau is standing aside from over three years ago following stints at better bet for a market that he sees as nal managers to sell an Indian aerospace London pensive than US equities and haven’t a European equities market that’s Barclays Wealth and Investment Man- overvalued and marked by “excessive company that makes cluster- bomb de- been loved by US investors despite an booming amid speculation about a agement and Primonial FundQuest. optimism” over the ability of President livery systems, Gaboriau said. improvement in earnings growth” on global economic recovery, faster infl a- Paying fees of 0.7% in aggregate is Donald Trump to boost growth. Every year, the fund receives €4mn o the manager of the Louvre the continent, Gaboriau said during tion and rising interest rates. Stocks necessary, Gaboriau said, to beat the Since Gaboriau joined the Louvre to €5mn in new donations. Donors last museum’s investment fund, the the interview in his offi ce, close to the surged to a record in Germany and a market. fund, he has increased its exposure to year included Nippon Television Hold- Trisks posed by France’s presi- 224-year-old museum in the heart of post-fi nancial crisis high in France last “Investing in active strategies ena- hedge funds to 20%, using the assets ings, which paid €2mn as part of an on- dential elections are just too great to be Paris. “Investors will return to Euro- week, buoyed by opinion polls sug- bles me to minimise the risk of asset as a replacement for low-yielding tra- going endowment worth €20mn. The buying European stocks right now. pean equities,” which will go back to gesting that the second round of the allocation,” said Gaboriau. “With a ditional bonds. The fund’s mandate Louvre Abu Dhabi will pay its French The €198mn ($216mn) endowment being “a safe zone,” he said. French election will see right-winger passive positioning, one doesn’t un- allows its exposure to global equities namesake a total of €400mn over 30 fund, which helps pay for the upkeep The Louvre fund was started in Marine Le Pen lose to centrist Em- derperform but is sure not to outper- to vary from 20% to 75%, which the years for the use of the brand - swelling of one of the world’s oldest art collec- 2009, largely from licensing revenue manuel Macron. form either, so if you’re wrong” on how investment chief said makes its risk the endowment fund all the time. tions, is keeping just 13% of its money from the United Arab Emirates, which Gaboriau picks the investments on you allocate money between stocks, profi le unusually high compared with “Einstein said that compounding in the region’s equities until Sunday’s will use the name for its own museum all but one of the Louvre’s 22 money bonds and so on, “you’re wrong on other long-term French institutions. is the eighth wonder of the world,” run-off vote. Afterward, it will con- opening this year in Abu Dhabi. All do- pools himself - going against the trend everything.” The fund also has a policy of allocat- Gaboriau said. “If the fund keeps sider buying the asset class again, pro- nations are added to the fund’s capital, for investors unhappy with the cost of The Louvre’s funds are also invested ing 3% of its assets to so-called impact performing, it should make a greater vided an “extreme” candidate doesn’t with only the return on its investments active funds to put more money into in assets including infrastructure, pri- investing, for example not dealing in contribution to the overall budget win, manager Philippe Gaboriau said - which have averaged 7% a year - go- stock-tracking strategies. vate equity, hedge funds and emerg- companies involved in anti-personnel of the museum. The Louvre is 200 in an interview before the fi rst round of ing toward preserving artworks and fi - He switched the museum’s portfo- ing-market debt, Gaboriau said. For its mines and cluster bombs. Last year, the years old, and we hope to be there for the elections. nancing educational projects. lio to active from passive when he took US exposure, a passive tracker fund is a fund convinced one of its largest exter- the next 200.”

Rosneft profi t misses estimates as rouble counters oil price

Bloomberg The deal with the Organisa- Moscow tion of Petroleum Exporting Countries is good for Russia’s state budget, which captures the osneft, Russia’s largest oil bulk of price increase, but less so producer, said fi rst-quar- for producer earnings, Kornilov Rter profi t climbed 8.3% as said in an email. Russia is in- higher crude prices were off set clined to extend the six-month by a stronger rouble and output agreement to curb output, En- cuts. ergy Minister Alexander Novak Net income rose to 13bn rou- said on Thursday. bles ($220mn) from 12bn roubles Yesterday, oil slid below $45 a year earlier, the Moscow-based a barrel for the fi rst time since company said in a statement Opec agreed to cut output in No- yesterday. vember as US shale confounds That missed the 17.8bn-rouble the producer group’s attempts to average estimate of six analysts prop up prices. surveyed by Bloomberg. Rev- Earnings before interest, taxa- enue gained by more than a third tion, depreciation and amortisa- to 1.41tn roubles. tion rose 22% to 333bn roubles, The “environment remains after Rosneft acquired regional diffi cult,” chief executive of- producer Bashneft last year. fi cer Igor Sechin said in the That beat the 308bn-rouble es- statement. “Continuing world timate from analysts. commodity-markets volatility, Capital expenditure rose 57% Vehicles pass in front of the headquarters of Russia’s central bank in Moscow. Price growth is converging so fast on the central bank’s 4% target that it may even drop below ruble appreciation - all of this to $3.3bn from a year earlier, the goal in the first half. impacted the company’s fi nan- yet fell 11% from the previous cial results.” quarter. Free cash fl ow fell 7% to While benchmark Brent $1.4bn from the previous year, crude rose 55% from a year ear- but was more than triple the lier to average $54.61 a barrel fourth-quarter fi gure. in the quarter after Russia and Average oil output in the fi rst Opec agreed to curb supply to quarter was 70,000 barrels a manage a global glut, Rosneft day less than October levels, the reined in output to comply with benchmark for the Opec agree- Russia feels kick from the deal. The rouble has also ment, Rosneft said on May 3. strengthened with the oil price, Total oil and gas output rose 11% increasing the cost of services to the equivalent of 5.79mn bar- such as drilling for Russian rels a day from the fi rst quarter companies. of 2016. “The rouble stinks, for “It was a tough quarter for sure,” said Alexander Kornilov, Russian oils as a whole, so no- ‘super-disinfl ationary an oil analyst at Aton. “It dried body was holding their breath,” out the effect of the higher oil Kornilov said. “Nonetheless price in the first quarter after Rosneft doesn’t look bad at an the Opec deal.” operating and cash fl ow level.” cocktail’ on prices

Bloomberg even drop below the goal in the fi rst half. is increasingly shaping policy. But even ing to the central bank. Even infl ation Moscow Infl ation eased for a 10th straight month with 75 basis points of monetary easing expectations, although stubbornly high, in April, slipping to 4.1% from a year ear- this year, the central bank is lagging be- are reacting. While still almost triple the lier, compared with 4.3% in March, the hind the speed of the disinfl ation, which central bank’s target, they’ve been on ussia’s central bank has been Federal Statistics Service said yesterday. brought the annual index down by more the decline and fell to the lowest level on springing surprises of late because The median of 19 estimates in a Bloomb- than a full percentage point this year record in April. Rit had some catching up to do. erg survey was for 4.2%. from 5.4% at the end of 2016. That was one of the reasons behind the The historic slowdown in infl ation, “Infl ation has decelerated sharply, After warning as recently as Febru- decision to cut rates last month, accord- which has already triggered two rate cuts, making the context for decisions on the ary that room for loosening in the fi rst ing to the Bank of Russia. means more of the same may be on of- key rate less predictable,” said Natalia half “has diminished,” the Bank of Rus- Monetary policy is increasingly sub- fer as an easing cycle kicks into full gear. Orlova, chief economist at Alfa Bank sia delivered rate cuts in March and April ject to “manual fi ne- tuning” and deci- Given the combination of high real inter- in Moscow. “There is a feeling that the but said last month that “the overall po- sions are set to grow even more unpre- est rates, fi scal tightening and currency monetary authority is now taking the cue tential” for decreases this year was “un- dictable, according to Evgeny Koshelev, appreciation, monetary conditions are from that surprise in the infl ation slow- changed.” an analyst at Societe General SA’s Ros- restrictive enough to result in “a super- down, to which it didn’t react in February A stronger rouble and gains in oil bank PJSC in Moscow. disinfl ationary cocktail” that will keep and March.” prices are among the main drivers be- “Infl ation has strongly deviated from pushing infl ation lower in the months After using forward guidance to steer hind the disinfl ation. Bumper harvests its expected trajectory, and that made the The headquarters of Rosneft is seen in Moscow. Russia’s largest ahead, according to HSBC Holdings. expectations for interest rates and re- of the past two years also contributed to central bank’s stance ‘extremely’ tight,” oil producer said yesterday its first-quarter profit climbed 8.3% as Price growth is converging so fast on lying on the longer-term outlook for the “unusual” deceleration in growth of he said. “March and April meetings were higher crude prices were off set by a stronger rouble and output cuts. the central bank’s 4% target that it may prices, the precipitous drop in infl ation food costs in March and April, accord- an eff ort to catch up.” Buffett’s $86bn cash pile has some dreaming of a huge deal

Bloomberg It’s a tantalising proposition as dozens of subsidiaries, like auto insurer shareholders. (He recently quipped he’d Seattle thousands of investors prepare Geico and BNSF, said Jim Shanahan, an “rather prep for a colonoscopy than to gather this weekend for the analyst at Edward Jones. issue Berkshire shares.”) company’s annual meeting in Omaha, And even though Buff ett prefers to What’s possible is not necessarily Warren Buff ett’s career is filled with Nebraska. set aside at least $20bn for a rainy probable, of course. splashy takeovers that cost billions - as Even at 86, Buffett is eager to show day, it’s still “a lot of cash to be sitting For starters, there aren’t that many in $10bn or $20bn or $30bn. his fans that he’s far from done on,” Shanahan said. Buff ett didn’t companies that are worth $100bn But $100bn? Even for Buff ett, that’d building his empire - and that he can immediately return a message seeking and fewer still that might interest be an awful lot of money. Yet, that is top his largest takeover, the $34bn comment. Buffett. He’s said, for instance, that he now the buzz among some investors, purchase of railroad Burlington The billionaire has plenty of other wouldn’t want to own a bank because analysts and Buff ett fans. Northern Santa Fe in 2010. pockets to dig into, as well. He’s of the regulation that would come There are no signs that anything is on Most of all, Buff ett wants to own indicated he could sell portions of along with it. the immediate horizon, but they can’t companies with strong competitive Berkshire’s stock portfolio to fund Another thing can be pretty much resist fixating on the record amount advantages that have earnings he can a deal. Some of those investments, counted out: a hostile bid. He has said of cash piling up at Buff ett’s Berkshire predict far into the future. including a $13bn holding in he doesn’t chase deals. Hathaway - conceivably enough to That’s why firms like Nike or Costco International Business Machines Corp, He recently pulled an off er with Kraft manage a transaction with a 12-figure might theoretically appeal, assuming could be liquidated without incurring Heinz Co for Unilever - which has a price tag. prices are attractive. T much of a tax bill. market capitalisation of roughly $150bn That would put a takeover of, say, Nike o be sure, neither has indicated it’s Then there’s debt. Buff ett borrowed - because the consumer products giant or Costco Wholesale Corp in range, to actually for sale - or that it would play almost a third of the sum required for deemed it unfriendly. cite examples of companies that might along if a deep-pocketed buyer makes last year’s $33bn deal for manufacturer “If he were given an interesting appeal to Buff ett’s tastes. a bid. Precision Castparts Corp With interest opportunity to spend $100bn, he’d “A $100bn deal seems possible” given Buff ett certainly has the war chest to do rates so low, that could be a particularly find the money,” said Steve Wallman, the cash on hand, said Richard Cook, an so. At the end of December, Berkshire attractive option. a longtime Berkshire shareholder investment manager in Birmingham, had $86.4bn in cash, earning barely A large deal could also be partially and investor in Middleton, Wisconsin. Alabama, whose fund holds Berkshire anything. That could balloon to $100bn funded using Berkshire’s own stock, “The more important factor is what’s shares. by mid-year as profits roll in from its though Buff ett is reluctant to dilute his available.” Buff ett: Eyeing companies with strong competitive advantages. Gulf Times Saturday, May 6, 2017 11 BUSINESS

Brazil bond BlackRock’s iron grip on Europe buyers going down market after world’s bond ETFs defi es competition biggest rally

Bloomberg London Bloomberg Sao Paulo ompetitors to BlackRock are trying to loosen the investing he junkiest bonds from Cgiant’s stranglehold on Europe’s Brazil’s banking sector $153bn bond exchange-traded fund Tare being scooped up by market. They’re struggling to make investors starved for yield after much headway. corporate debt from the coun- The company’s market share has try’s biggest companies surged increased in recent years to 67%, data last year. from Morningstar show, even as com- Quesnell Capital’s global petitors add new funds and off er low high-yield fund is one of the fees. Rivals are being stymied because buyers. After beating 95% of its BlackRock’s iShares can off er investors peers in the past year with an access to European bond funds holding overweight position in Brazil, €93bn ($101bn) of net assets, or more the fund is wagering on notes than nine times the tally at nearest rival from Banco do Brasil that are six Deutsche Bank. levels below investment grade “There is a huge fi rst-mover advan- because they’ll be worthless if tage,” said Deborah Fuhr, managing the bank ever needs a large capi- partner at research company ETFGI. tal increase. The risky bet has “It’s diffi cult to launch successful ‘me– returned as much as 19% this too’ products because you’re directly year - three times the average for competing with a fund that already has Brazil corporates. assets and trading volume.” “To fi nd value, investors have Investors have poured about $9bn had to get a bit more adventur- into bond ETFs in Europe, the Mid- ous,” said Ian McCall, who man- dle East and Africa this year, accord- ages $185mn in emerging-mar- ing to BlackRock data, partly because ket assets at Quesnell in Geneva. they are becoming more accepted as Investors are taking another an easier trading option than illiquid look at Brazil’s worst-rated bond markets. bonds after its corporate debt New European Union rules coming soared almost 30% last year, into force in January may also boost the pushing average yields down to products’ popularity by making trading 6.7% from as high as 11% at the volumes more readily available. end of 2015. In search of steeper “There’s quite a bit of investment payouts, investors have gravitat- going into bond ETFs,” said Blanca The BlackRock logo is displayed at the company’s off ices in New York. The company’s market share has increased in recent years to 67%, data from Morningstar show, ed to bonds from smaller lenders Koenig, a senior product strategist at even as competitors add new funds and off er low fees. and deeply subordinated debt Deutsche Bank’s X-trackers. “It’s cer- from the mega banks, betting tainly an area we want to grow.” Still, investors may accept higher to make this area of the market more due to the region’s varying tax regimes, aged ETFs in contrast to BlackRock’s the industry won’t suff er the X-trackers is seeking to expand its fees to invest in large ETFs because competitive.” which make it diffi cult for providers to purely index-tracking funds in Europe. surge in non-performing loans 7% market share partly by convert- these products are generally easier to BlackRock dominates bond ETFs in operate funds across national borders. State Street has “invested heavily” that some analysts had forecast ing many of its funds so that they own trade. The iShares gilt fund has 1.8bn Europe - and has about half the US mar- Demand has also been curbed by a in its European ETF sales team over the when Brazil was in the midst of bonds rather than using swaps to follow euros of assets, at least 10 times more ket - largely because of its 2009 acqui- dearth of trading data. This will prob- past year, said Jo McCaff rey, head of in- its worst recession in a century. an index. than the State Street, Vanguard and sition of Barclays Global Investors, the ably end in January because investors ternational product for SPDR ETFs, and Bonds from Banco Mercantil That mirrors what BlackRock does. Lyxor funds. owner of iShares. The New York-based will have to report trades under the another iShares alumnus. do Brasil, a Minas Gerais-based So-called physical ETFs have been Vanguard, which ranks second to company off ers more than 80 xed-fi Markets in Financial Instruments Di- The company boosted its fi xed- retail lender, due in 2020 have more popular with investors in re- iShares in the US bond ETF market, has income ETFs in Europe, including prod- rective II, or MiFID II. The change will income ETF market share to 4.6% in posted a total return of more cent years, said Koenig, who joined X- increased its presence in Europe over the ucts tied to emerging markets, corporate spur trading via exchanges rather than March from 3.6% a year earlier, ac- than 19% this year, while notes trackers from BlackRock in 2015. last year, including introducing fi ve new debt and mortgage-backed securities. over the counter, said Jose Garcia-Za- cording to Morningstar. Invesco is also from Banco do Estado do Rio Some providers are trying to lure debt funds. It’s also added more staff to “Increased competition will help rate, Morningstar’s associate director targeting the European ETF market Grande do Sul, Banco Bonsuces- investors by offering low fees. For in- help boost its 0.3% regional market share. grow the market and lead to greater in passive research. with an agreement to buy fund opera- so and Banco BMG - all of which stance, BlackRock charges 0.2% for “There isn’t a lot of competition in innovation and education, which we Pimco, which has 20 ETF off erings tor Source last week. are rated at least four notches investing in its iShares Core UK Gilts fixed-income ETFs and that’s bad for welcome as being good for investors,” globally, is considering adding funds “If you talk to any ETF provider in below investment grade - have fund. State Street Corp’s SPDR has investors,” said Andreas Zingg, Van- Brett Olson, BlackRock’s head of EMEA focused on high-yield notes or securi- Europe, fi xed income is at the top of returned more than 10% this a 0.15% levy for a similar ETF, while guard’s head of Europe ETF Distri- fi xed-income iShares, said by email. tised debt, said Ryan Blute, the head of their priorities,” said Morningstar’s year. None of the senior debt Vanguard Group’s fees are 0.12%. bution, and an ex-iShares employee. The European bond ETF market has its global wealth management business Garcia- Zarate. “BlackRock has a very from the country’s biggest pri- Lyxor Asset Management is even “There is a lot of energy and work room to grow because it’s only about a in Europe, the Middle East and Africa. tight grip and the other providers want vate lenders, which enjoy better cheaper at 0.07%. from us and also from competitors third of the size of the US This is partly The company also has actively man- a piece of the market.” ratings, have posted a total re- turn of more than 7%. “The market was expecting non-performing loans on those names to go through the roof, Global first-quarter gold demand drops to seven-year low but this hasn’t materialised,” said Patrik Kauff mann, who helps manage $11bn in assets at Soli- Bloomberg we saw last year.” The drop in overall That’s down from 377.2 tonnes last year taire Aquila in Zurich. “Therefore London demand was tempered by more gold and 576.5 tonnes in 2015, the council the market is repricing the addi- bar purchases, and total consumption estimates. tional spread these names have to rose about 3% compared with the final “China hasn’t bought anything since pay for their refi nancing.” Global first-quarter gold demand three months of the year. October 2016,” Hewitt said. “There are Brazilian banks are rebound- dropped to the lowest for the period Prices climbed 8.9% in the first quarter only a few buyers active at the moment: ing as the economy emerges in seven years as central banks and as geopolitical risk and uncertainty Russia, being one of the most significant from two years of recession that exchange-traded fund investors scaled over US policies and upcoming ones; and Kazakhstan, which although fuelled bankruptcies and boost- back purchases. elections in Europe spurred demand not substantial has been a hugely ed bad-loan provisions. Smaller Buying fell 18% to 1,034.5 metric for a haven. reliable buyer.” lenders are now seeing higher tonnes, the biggest year-on-year Investors bought 109.1 tonnes In China, the top purchaser, consumer profi ts as they build out their decline for the quarter since at least through ETFs in the first quarter, demand rose 8% to 282.4 tonnes, with loan portfolios. 2000, the World Gold Council said in a down from 342.1 tonnes a year earlier, the council maintaining its full-year Increasing banking concen- report on Thursday. according to the council. Inflows forecast of between 900 to 1,000 tration in Brazil has also allowed ETF purchases slumped 68% and into products in Europe, particularly tonnes. smaller lenders to increase their central banks bought 27% less bullion in Germany and the UK, weren’t No 2 buyer India saw purchases rise 15% share of loans to the most credit than they did a year earlier. matched by similar demand in the US, to 123.5 tonnes. The council expects the worthy companies, said Claudio “We were always going to see demand Hewitt said. country to buy 650 to 750 tonnes this Gallina, senior director for fi nan- down compared with Q1 2016, which Central bank buying slowed to 76.3 year. cial institutions at Fitch Ratings. was the best first quarter on record,” tonnes in the quarter, as China held More first-quarter figures: Global “Mid-size lenders have al- said Alistair Hewitt, head of market off adding to reserves. Nations will jewellery demand added 1% year- ready set aside enough for pos- intelligence at the London-based WGC. probably purchase 250 to 350 tonnes on-year to 480.9 tonnes, technology sible new loan losses, limiting “The decline can largely be attributed this year, Hewitt said by phone from demand rose 3% to 78.5 tonnes and the room for bad surprises for to the stellar growth in ETF inflows London on Wednesday. total supply fell 12% to 1,032 tonnes. those names down the road,” Gallina said. Germany’s shrinking steel industry collides with key state vote

Bloomberg “I don’t want to imagine what will port declining to 35% and the CDU ister Andrea Nahles and Vice Chan- Dusseldorf happen when the decisions are no rising to 29% - cutting nearly in half cellor Sigmar Gabriel, both members longer discussed in German but rather what was an 11 percentage point gap of the SPD, have attended rallies in in English, and when the decisions are in March. The CDU, led in the state recent months at the plant calling for he threat of Thyssenkrupp not made in Essen or Duisburg but in- by Armin Laschet, sees an opening to the protection of the company’s steel shedding thousands of steel jobs stead in London, the Netherlands or unseat Kraft, who has run NRW since industry. Tin Germany’s most populous Mumbai,” Garrelt Duin, NRW’s Social 2010. The party says she’s hamstrung With such a big prize on the line state is turning into a campaign issue Democratic economy minister, said because she currently governs with the and implications at the national level, less than two weeks before the biggest at a rally Wednesday outside Thys- pro-environment Greens, and argues Merkel is campaigning in the state on electoral test heading into the national senkrupp’s plant in Duisburg, Europe’s that the CDU would do more to priori- Thursday and her challenger for the vote in September. largest steel production site. “And that tise the steel industry. chancellorship, Martin Schulz, is visit- With polls suggesting the Social is why we do not want this solution,” he “We would speak with a much ing as well. Democratic Party at risk of losing its said of the proposed merger. clearer voice for this industry and in- North Rhine-Westphalia is home to governing majority in a vote in North- While Merkel defends the free trade tervene in a diff erent way in Brussels more than 20% of the German popula- Rhine Westphalia on May 14, local that benefi ts German exports, the and Berlin,” Hendrik Wuest, the CDU’s tion and is larger than the Netherlands, leaders from the SPD and Chancellor country’s shrinking steel industry, spokesman for economic policy in the its western neighbour. Angela Merkel’s Christian Democrat- which has shed two-thirds of its jobs state parliament, said in a phone inter- It has a gross domestic product ic Union are jockeying to defend the in the last four decades, shows how A view of ThyssenKrupp headquarters in Essen. Thyssenkrupp, formed in 1999 view. “Employment in the steel indus- of almost €650bn ($710bn), making country’s steel workers. advocating for globalization can be a through the merger of two iconic German companies, has been caught up in the try itself is at stake and the long value the state comparable in GDP terms to Thyssenkrupp, formed in 1999 double-edged sword, even in a nation political spotlight as it tries to restructure its steel operations in response to a chain that depends on it.” Switzerland or Turkey. through the merger of two iconic Ger- where unemployment is at a record global glut depressing steel prices. The SPD is fi ghting to retain control Employees at Essen-based Thys- man companies, has been caught up post-reunifi cation low. of a state that it’s governed for nearly senkrupp oppose the talks that started in the political spotlight as it tries to The fate of Thyssenkrupp’s 22,000 nelore Kraft, whose SPD has close un- ny’s top labour leader, said in a phone the entire time since its creation after last year to create a joint venture with restructure its steel operations in re- steel workers in the state - Germany’s ion ties and needs their backing to win interview. “The merger should be bur- World War II. One blip in that continu- Tata, which they see as a possible pre- sponse to a global glut depressing traditional industrial heartland and another term. ied. Thyssenkrupp can develop better ous control was in 2005, when the CDU cursor to site closures and an eventual steel prices. Unions oppose that eff ort, home to Bayer, Deutsche Telekom, “Kraft needs to show solidarity and on its own and to do that we need the won the state, prompting then-SPD exit from steel altogether by chief ex- which they say will result in more than Deutsche Post and all of Germany’s have our backs and fi ght with us for the support of politicians.” Chancellor Gerhard Schroeder to call ecutive offi cer Heinrich Hiesinger, 4,000 job loses, as well as a proposal to biggest utilities - is of particular con- future of steel-making at Thyssenk- The most recent poll in NRW, as the an early national election that brought who is shifting to a more diversifi ed merge the operations with Tata Steel. cern for State Prime Minister Han- rupp,” Wilhelm Segerath, the compa- state is called, showed the SPD’s sup- Merkel to power. Federal Labor Min- industrial group. Saturday, May 6, 2017 GULF TIMES BUSINESS

QSE WEEKLY REVIEW Bourse languishes at 5-month low on foreign funds’ higher net selling

By Santhosh V Perumal whereas Kuwait, Bahrain and Abu Dhabi ties and opportunity to acquire assets overall settle 152 points lower this week. Nakilat and Gulf Warehousing this week. on mere 6% rise in deals to 359. There was Business Reporter added 17.48%, 9.08% and 1.56% respec- with attractive valuation. The 20-stock Total Return Index shed Nevertheless, Ezdan, Al Khaliji, Qatar 47% surge in the consumer goods sector’s tively. Overall trade turnover and volumes 1.5%, All Share Index1.64% and Al Rayan Islamic Insurance, Doha Bank and Masraf trade volume to 2.24mn stocks, 7% in Profit booking was intense within grew this week, which saw real estate, Islamic Index 1.6% this week which saw Al Rayan were among the gainers during value to QR109.61mn and 7% in transac- Foreign funds’ higher net selling and local transport, industrials, telecom, consumer banking and telecom sectors account for profit booking grip six of the seven the week. tions to 1,809. retail investors’ bearish grip led the Qatar goods and banking counters this week more than 83% of the volumes. sectors. Non-Qatari institutions’ net profit book- The industrials sector’s trade volume Stock Exchange (QSE) to languish at five- which witnessed QSE chief executive Banks and financial services and realty The transport sector lost 3.67%, indus- ing strengthened to QR62.04mn from shot up 38% to 3.78mn shares and value month low, becoming the worst performer Rashid bin Ali al-Mansoori reveal in- sector constituted 29% each of the total trials (2.59%), telecom (2.09%), consumer QR2.07mn the previous week. by 27% to QR199.86mn, while deals were among the Gulf bourses this week. creased listing interests from Qatar’s volume, telecom (25%), industrials (7%), goods (2.02%), banks and financial institu- Local individual investors were net down 4% to 3,829. About 82% of the stocks were in the corporate sector. consumer goods (4%), transport (3%) and tions (1.76%) and insurance (1.07%), while sellers to the tune of QR48.51mn against The real estate sector reported 36% red as the 20-stock Qatar Index shed Large and small cap equities suff ered insurance (2%) this week which saw Voda- realty gained 0.57% this week. net buyers of QR21.29mn the week ended expansion in trade volume to 15.11mn equi- 1.5% and capitalisation eroded QR11bn the most this week which saw the Ministry fone Qatar, Ezdan and Commercial Bank Market capitalisation eroded 1.97% to April 27. ties, 22% in value to QR243.48mn and 19% this week, which saw Qatar cabinet’s of Economy and Commerce give final dominate the trading ring in volumes and QR532.05bn as large, small, micro and Non-Qatari individual investors also net in transactions to 2,552. approval for draft law to introduce value touches to a new public private partner- value. midcap stocks fell 2.08%, 1.8%, 1.64% and sold QR1.3mn worth equities compared The banks and financial services sec- added tax. ship law. Banks and financial services’ share in 1.59% respectively this week. with QR2.07mn net buying the week ago. tor’s trade volume grew 11% to 14.88mn Kuwait, Muscat, Saudi Arabia and Bah- Islamic stocks fell faster than the main total trade turnover was 39%, real estate Mid, large, small and microcap equities’ However, domestic funds net bought stocks and value by 19% to QR504.31mn, rain bourses fell 1.48%, 0.9%, 0.31% and index this week which saw Qatar’s 2016 (19%), industrials (15%), telecom (11%), YTD losses were at 10.71%, 5.46%, 4.24% QR111.85mn worth scrips against whereas deals fell 2% to 5,153. 0.07%, while Abu Dhabi and Dubai rose fourth quarter producer price index fall consumer goods (8%), transport (4%) and and 2.66% respectively. QR21.4mn net profit booking the week However, the market witnessed 42% 2.31% and 0.09% respectively this week 9.7% on a quarterly basis. insurance (3%) this week which saw no Major losers included Industries ended April 27. plunge in the transport sector’s trade which saw listed companies’ cumulative However, domestic institutions turned trading of treasury bills and sovereign Qatar, QNB, Ooredoo, Qatar Insurance, Total trade volume rose 14% to 51.42mn volume to 1.61mn shares, 36% in value to net profit at QR10.71bn in January-March net buyers this week which saw Ernst and bonds. Qatar National Cement, Milaha, Woqod, shares, value by 13% to QR1.3bn and trans- QR51mn and 15% in transactions to 957. 2017. Young view mergers and acquisitions, Opening the week weak at 10,064 Qatar Islamic Bank, QIIB, Qatar Electric- actions by less than 1% to 16,016 this week. The telecom sector’s trade volume The QSE’s year-to-date (YTD) losses especially in the Gulf Cooperation Council, points, the gains in the second day ity and Water, Mesaieed Petrochemical The insurance sector’s trade volume was down 3% to 12.9mn equities, value were at 4.78% against 5.31% in Muscat, to rebound on expected lower oil prices, led index reach a high of 10,110 points, Holding, Gulf International Services, almost quadrupled to 0.9mn equities and by 12% to QR148.28mn and deals by 8% 3.97% in Saudi Arabia and 3.15% in Dubai; hydrocarbon firms’ refocus on core activi- after which it was on a declining path to Barwa, Mazaya Qatar, Vodafone Qatar, value more than doubled to QR44.08mn to 1,357.

Nokia plans to sell undersea US unemployment rate cables unit, say sources

Reuters hits 10-year low at 4.4% Paris Nonfarm payrolls increase by inland’s Nokia plans to sell its 211,000 in April; unemployment undersea cables unit, a busi- rate falls to 4.4%; average hourly Fness that underpins the global earnings increase 7 cents Internet, two union sources and a French government source told Reu- Reuters ters. Washington The division, valued at about €800mn ($870mn), is one of the top suppliers of undersea cable networks S job growth rebounded sharp- in the world and was bought by the ly in April and the unemploy- telecom equipment maker last year Ument rate dropped to 4.4%, as part its €15.6bn ($17bn) acquisi- near a 10-year low, pointing to a tight- tion of French rival Alcatel. ening labour market that could seal The French government deemed the the case for an interest rate increase business strategic for the country at next month despite moderate wage the time, as it guarantees high-speed growth. internet connections with overseas Nonfarm payrolls surged by 211,000 territories and African countries. It jobs last month, the labour Depart- also plays a key role in cyber-surveil- ment said yesterday, well above the lance and national security. monthly average of 185,000 this year Still known as Alcatel Submarine and a jump from the gain of 79,000 in Networks (ASN), the unit employs March. about 1,000 people, mainly in France The job gains were broad-based, and Britain, and produces, deploys with hefty increases in leisure and and maintains submarine cables. hospitality, healthcare and social as- It is managed as a separate busi- sistance as well as business and profes- ness by Nokia and its results are ag- sional services. gregated to those of its parent com- The drop of one-tenth of a percent- pany. age point in the unemployment rate “Nokia’s intention to eventually took it to its lowest level since May sell ASN was expressed by Nokia on 2007. various occasions in talks with the The decline refl ected both an in- state and relevant stakeholders, in- crease in hiring and people leaving the cluding the staff ,” one of the sources labour force. said. “ASN isn’t indeed a core busi- “With continued solid job growth, ness, according to Nokia,” the source the US economic expansion will con- added. tinue throughout 2017. Nokia’s management in France The Fed will raise the federal funds informed staff internally about the rate again in mid-June as the economy group’s intentions, two union sourc- is approaching full employment,” said es told Reuters. Gus Faucher, chief economist at PNC The Finnish telecoms equipment Financial in Pittsburgh. maker said however that there was The rebound in hiring supports the no urgency for the deal no potential Federal Reserve’s contention that the bidder had yet been identifi ed, the pedestrian 0.7% annualized econom- stock index futures rose. The US dollar fi rst quarter. With the labour market Leisure and hospitality payrolls cal governments off set a decline in fed- sources added. ic growth pace in the first quarter was initially gained against a basket of cur- expected to hit a level consistent with jumped by 55,000 in April. eral government employment. Nokia declined to comment. likely “transitory,” and its optimism rencies before turning fl at. full employment this year, payroll gains Professional and business services Other labour market measures also The future of ASN has been un- that economic activity would expand Average hourly earnings rose seven could slow amid growing anecdotal ev- payrolls rose by 39,000. showed strength last month. certain since 2014, as Alcatel also at a “moderate” pace. cents, or 0.3%, last month, partly be- idence that fi rms are struggling to fi nd Healthcare and social assistance em- A broad measure of unemployment, once sought to divest the business. The US central bank on Wednesday cause of a calendar quirk. qualifi ed workers. ployment increased by 36,800 jobs. which includes people who want to Nokia said previously it was con- kept its benchmark overnight interest While that lowered the year-on-year That could also push up wages. Retail payrolls gained 6,300 after work but have given up searching and sidering its strategic options for the rate, or federal funds rate, unchanged increase to 2.5%, the smallest since The economy needs to create 75,000 two straight months of declines. those working part-time because they business and has mandated audit and said it expected labour market August 2016, there are signs that wage to 100,000 jobs per month to keep up Retailers including JC Penney Co, cannot fi nd full-time employment, fi rm EY to review them for potential conditions would “strengthen some- growth is accelerating as labour market with growth in the working-age popu- Macy’s and Abercrombie & Fitch dropped three-tenths of a percentage sale. what further.” slack diminishes. lation. have announced thousands of layoff s point to 8.6%, the lowest level since Nokia’s division operates seven The Fed raised rates by a quarter of Average hourly earnings increased Job growth averaged 178,000 per as they shift toward online sales and November 2007. vessels. a percentage point in March and has 2.6% in March. month in the fi rst quarter. scale back on brick-and-mortar op- The employment-to-population It has facilities in Calais, France forecast two more increases this year. A government report last week Construction payrolls rose 5,000 erations. ratio rose one-tenth of percentage and Greenwich, Britain, on the site Prices of US government debt fell showed private sector wages recorded last month and manufacturing em- Government payrolls jumped 17,000 point to a fresh eight-year high of where the world’s fi rst transatlantic after the employment data while US their biggest gain in 10 years in the ployment advanced by 6,000 jobs. last month as an increase in hiring by lo- 60.2%. cable was manufactured in 1858.

Spain’s Banco Popular to sell off assets to boost depleted capital

CEO says will look at sale of Wizink the bank would consider off ers and gone three leadership shake-ups since Spain’s sixth biggest lender said net and TotalBank; sale of both worth hoped to close the TotalBank deal this last July, posted a €3.5bn loss, which interest income — a measure of earn- €1.4bn, say analysts year. yesterday it revised up by €130mn. ings on loans minus deposit costs — “Wizink is a very attractive asset due The bank said it expected to return to was €500mn , down over 9% from Reuters to its profi tability and growth. profi t this year. a year ago and 3% from the previous Madrid That said, at the right price we could In a sign of the new management’s quarter, and just below analysts’ fore- sell it,” Sanchez-Asiain told a a news change in strategy, Sanchez-Asiain casts. conference. said yesterday Popular had “totally It ended March with a fully-load- he new management of Spain’s Popular’s 49% stake in Wizink, abandoned” a plan proposed by Ron ed capital ratio — a closely-watched Banco Popular is looking at sell- which it set up in 2014 with US invest- to spin-off €6bn of non-performing measure of a bank’s strength — of Ting its credit card business Wiz- ment fi rm Varde Partners, is valued at real estate assets into a separate unit. 7.33% compared to 8.17% at the end of ink and US around 1bn euros, according to analysts Popular shares opened down 5% but December. franchise TotalBank to boost its capi- at UBS. later reversed their losses and were 3% It is the lowest among listed Spanish tal after the bank lost €137mn ($150mn) Florida-based TotalBank is valued at higher by 1200 GMT as analysts wel- banks, although it is above regulatory in the fi rst three months of the year. €400mn, they said. comed a slight reduction to its non- requirements. In Popular’s fi rst results under new In Banco Popular’s first results under new chairman Emilio Saracho, it set aside Chairman Saracho is seeking to draw performing asset portfolio, the largest Analysts said the slip in capital was chairman Emilio Saracho, it set aside €500mn in quarterly provisions as it continues to clean up €37bn of toxic real a line under the management of his among Spanish banks and the prospect more evidence that the bank needed to €500mn in quarterly provisions as it estate assets accumulated during Spain’s financial crisis. predecessor, Angel Ron, and said last of asset sales. raise more money. continues to clean up €37bn of toxic month the bank could undertake an- Its shares have been the worst per- “It’s a long way back from such a low real estate assets accumulated during sions, chief executive Ignacio Sanchez- core banking business in Spain. Asked other capital hike after a €2.5bn raise formers on the European STOXX CET1 ratio,” RBC Capital Markets ana- Spain’s fi nancial crisis. Asiain, who joined in April, said Popu- whether Popular would sell off Wizink last year and consider a merger deal. banking index in the last six months lyst Benjamin Toms wrote in a note, re- To raise funds to cover the provi- lar would sell off assets outside its and TotalBank, Sanchez-Asiain said In 2016, Popular, which has under- and have lost 60% over the past year. ferring to Popular’s capital.