Qatar Pavilion at Hannover Fair Attracts Huge Turnout of Visitors

Friday, April 5, 2019 Rajab 29, 1440 AH MERGER PLANS: Page 10 GULF TIMES Commerzbank is said to enter key weekend BUSINESS in Deutsche Bank talks Qatar pavilion at Hannover Fair attracts huge turnout of visitors atar’s pavilion at the Hanno- identifying the potential of other par- ver Fair 2019 has seen a large ticipants, drawing on their expertise Qturnout of businessmen, offi- and identifying opportunities that cials, representatives of the industri- benefi t Qatari companies. al and trade sectors and international “We are also seeking to introduce media. participants and visitors to Qatar The 1000-square metre pavilion the Rail’s projects, which consist in fi rst Ministry of Commerce and Industry phase of 37 stations, including 31 un- hosted for the second consecutive year derground stations and six ground brought together representatives of the stations as well as rail lines that will Qatar Chamber, the Qatar Financial serve the regions of Doha, Al Wakrah Centre, Manateq, the Qatar Free Zones and Lusail, to be completed in 2020. Authority, the Supreme Committee The second phase will be implement- for Delivery & Legacy, Qatar Railways ed to promote sustainable develop- Company (Qatar Rail), the Qatar De- ment in line with the Qatar National velopment Bank and the Qatar Science Vision 2030.” and Technology Park. Nasser al-Nuaimi, representative of Participating private companies in- the Supreme Committee for Delivery cluded Qatar Industrial Manufactur- & Legacy, said the committee seeks to ing Company (QIMC), Ebn Sina Medi- showcase stadiums including Al Thu- cal, Qatar Aluminium (Qatalum), Doha mama, Khalifa International, Educa- Cables, Bin Aman Plastic Industries Qatar’s pavilion at the Hannover Fair 2019 has seen a large turnout of visitors, including businessmen, offi cials, representatives of the industrial tional City, Ras Abu Aboud, Al Rayyan, and Qatar Steel. and trade sectors, and international media Al Wakrah, and Lusail stadiums. Participating entities showcased Al-Nuaimi explained that the fair the most prominent initiatives under- ising” investment opportunities and additional number of German compa- Abdulla al-Naimi, director (Cor- conduct environmental research in attracted a large number of German taken by Qatar to attract and stimulate “attractive” investment climate for nies to the Qatari market.” porate Government Relations) at the terms of water and air sustainability,” visitors who were briefed on the de- investments in the industrial sector local and foreign companies, partici- Ali Sultan al-Kuwari of Qatar De- Qatar Science and Technology Park al-Naimi noted. velopment of these stadiums and their and enhance its strategy of supporting pants noted. velopment Bank said the bank’s par- (Qatar Foundation) said the QSTP has Mohamed al-Mohannadi of Qatar potential. the private sector and off ering incen- The fair provided a platform for ticipation in the fair falls in line with its sought to become a global hub for re- Chamber, which is being represented at On Qatar Free Zones Authority’s tives to attract investors and foreign Qatari companies to promote their eff orts to promote local industries and search, energy, environment, technol- Qatar’s pavilion for the second consecu- participation in the fair, its representa- capital. products, access new markets and ex- provide clients access to international ogy and education since its establish- tive year, said QC was seeking to secure tive Maarouf Mahmoud said they have Participants also introduced Qatari port their high-quality goods to global markets, which will bolster Qatari ex- ment in 2009. new partnerships and joint ventures. met with foreign companies to outline industries in various sectors and the markets. ports and contribute to the accom- Since then, the QSTP has attracted Al-Mohannadi hailed Qatar Indus- investment terms in Qatar, particu- latest technological developments and Abdulbasit Talib al-Ajji, director plishment of the Qatar National Vision a large number of companies thanks trial Manufacturing Company (QIMC), larly those related to companies in the advanced equipment being used in the (Business Development and Invest- 2030. to the incentives it off ers, including Ebn Sina Medical, Qatar Aluminium industrial and technology sectors. The industrial sector, in addition to the in- ment Promotion Department) at the Manateq director (Business Devel- tax and customs exemptions as well (Qatalum), Doha Cables, Bin Aman fair provided a platform to network vestment opportunities and incentives Ministry of Commerce and Industry opment) Adel Wali said that Manateq, as its advanced legislative framework, Plastic Industries and Qatar Steel for with companies looking to invest in granted to investors, businessmen said, “Through Qatar’s pavilion, the through its participation in the fair, which streamline services provided to participating in the fair under the um- Qatar. and entrepreneurs seeking to invest in Ministry aims to showcase the key aims to promote investment opportu- governmental and non-governmental brella of Qatar Chamber, noting that Representatives of the Qatar Finan- various industries. These incentives characteristics that position Qatar as nities in industrial, logistics and eco- agencies, al-Naimi said. these fi ve companies were among 350 cial Centre, said the QFC was seeking promote domestic and foreign invest- an attractive economic environment nomic zones. These areas are strategi- “We host numerous multinational manufacturing companies based in to advertise fi nancial services it off ered ments and contribute to the economic for foreign investments as well as the cally located across the country and are companies, including General Electric, Qatar. and shed light on corporate registra- development of Qatar. incentives and legislations endorsed home to high-quality infrastructure ConocoPhillips, ExxonMobil, Total, Mohamed al-Mustafawi al-Hashe- tion procedures to attract foreign and The large number of represented by the State to support the private sec- that enable investors to set up busi- Shell and other tech companies such as mi of Qatar Rail said, “Our partici- German companies to invest in the Qa- entities refl ected Qatar’s advanced po- tor, which would result in growing for- nesses and companies in a growth- Microsoft, Cisco, Gulf Bridge Interna- pation in the Hannover fair is aimed tari market and tap local opportunities sition as well as the country’s “prom- eign direct investment and attract an oriented and prosperous environment. tional and petroleum companies that primarily at showcasing our potential, through the centre. Page 12 Natural gas key to achieving lower Qatar Airways wins coveted PAX carbon energy system: GECF chief International Readership awards Natural gas will be the only hydrocarbon aff ordable, reliable, sustainable and modern resource to increase its share in the global energy for all, Sentyurin noted. energy mix, from the current 22% to 26% in Africa has tremendous prospects for natural Qatar Airways was given the ‘PAX International 2040, according to Gas Exporting Countries gas production, he said. Readership’ award for ‘Best Cabin Interior Pas- Forum (GECF) secretary general Dr Yury And that according to the 2018 GECF Global senger Experience’ at an awards ceremony held in Sentyurin. Gas Outlook, Africa’s marketed gas production Hamburg, Germany on Wednesday. “Natural gas is a destination fuel that will can contribute as much as 9.2% to the global The national carrier also received the ‘Best In- prove to be key to achieving a lower carbon total by 2040, corresponding to an expansion Flight Duty Free Programme’ award for the Middle energy system,” Sentyurin said in his opening of 255 bcm to more than 505 bcm by 2040 East – the third time in four years that it has won address at the African Petroleum Producers (Africa’s gas production in 2018 was 253 bcm), this award – as well as the ‘Outstanding Food Organisation (APPO) CAPE VII Congress and a compound average annual growth rate Service’ award. and Exhibition in Malabo, Equatorial Guinea of 3.4% over the forecast period, meaning The ‘Best Cabin Interior Passenger Experience’ yesterday. Africa is expected to more than double its award recognises the “unparalleled” in-flight expe- Africa’s progress in natural gas development production. rience off ered on Qatar Airways’ patented business will be a triumph against energy poverty, Sentyurin praised Equatorial Guinea’s ‘2019 class seat, Qsuite, which features the industry’s where approximately 80% of people still Year of Energy Initiative’. Of the GECF’s some first-ever double bed in business class, as well as rely on biomass and waste to meet their 19 members, six are located in the African sliding panels that stow away, enabling colleagues, energy needs, he said. Given the numerous continent: Algeria, Angola (newest member), family members and friends travelling together to health and air quality concerns associated Egypt, Equatorial Guinea, Libya, and Nigeria. create their own private suite. with biomass burning, improving energy The secretary general pointed out that the Qatar Airways group chief executive, HE Akbar accessibility on the continent is not only a GECF countries have added “substantial al-Baker said, “As an airline, one of our highest necessity for fighting energy poverty, but for shares” to total gas production in Africa. priorities is to provide our customers with an fulfilling climate change objectives, and UN Collectively, they contributed 236 bcm exceptional experience each and every time they Sustainable Development Goal 7: access to to marketed gas production in 2018, and fly. We continually strive to innovate in order to accounted for about 93% of the total gas create a memorable environment onboard – from produced on the African continent. our cabin interior, to our exquisite food and bever- He also pointed to the fact that several age service, to our extensive duty free off ering. We key industry players from other member are very pleased that these awards recognise our countries, such as Gazprom and Equinor, are eff orts to pay attention to every detail.” Qatar Airways has been given the ‘PAX International Readership’ award for ‘Best Cabin Interior active in Africa and ready to provide business Qatar Duty Free senior vice president, Bruce Passenger Experience’ on top of other honours. PICTURE: www.patrick-lux.de assistance to local producers. Bowman said, “We are delighted that our in-flight Initiatives such as the massive LNG2Africa duty free programme has been recognised as the brands, as well as its in-flight duty free magazine, include Tiff any & Co, Gucci, Bulgari, Hermes, Initiative are crucial to bringing energy, best in class in the Middle East for the third time in Extravaganza, introducing passengers to a collec- Burberry, Hugo Boss, Moncler, Rolex and Harrods. natural gas in particular, to the power systems four years. This is testament to our commitment tion of more than 170 in-flight products, including In addition, the award-winning duty-free retailer of the continent, he said. to providing passengers with a selection of luxury fragrances, cosmetics, skincare, watches, jewel- regularly showcases podiums and pop-up stores Sentyurin also said these projects have been and leading brands and products tailored to their lery, fashion accessories, toys, and Qatar Airways including the Maison Christian Dior boutique, a figured into the GECF’s Global Gas Outlook needs. The introduction of our online pre-order memorabilia. TUMI Pop-up store, the Dior Les Parfums Podium projections. facility last year also means that passengers can One of the largest duty free retailers in the world, and the Aigner Luxury Boutique. Organised by Africa Oil & Power, the APPO shop prior to travelling and have their shopping QDF boasts more than 90 elegant boutiques and A multiple-award-winning airline, Qatar Airways CAPE VII is a high-level gathering of APPO delivered to the comfort of their seats. The Mid- luxury, high-end stores, as well as more than 30 was named ‘World’s Best Business Class’ by the ministers, private sector oil and gas leaders dle East is a highly competitive region for duty restaurants and cafes covering an area of 40,000 2018 World Airline Awards, managed by interna- Dr Sentyurin delivering the opening and other prominent industry leaders. free; thus we are tremendously gratified to have square metres at the Hamad International Airport, tional air transport rating organisation Skytrax. It address at the African Petroleum Producers The event, which concludes today, falls under received this award.” providing travellers with a world-class shopping was also named ‘Best Business Class Seat’, ‘Best Organisation CAPE VII congress and expo in the umbrella of Equatorial Guinea’s ‘Year of Qatar Airways’ in-flight off ering includes an experience under one roof. Airline in the Middle East’, and ‘World’s Best First Malabo, Equatorial Guinea yesterday. Energy 2019.’ exclusive selection of aff ordable and luxury Luxury brands available at the five-star airport Class Airline Lounge.’ Gulf Times 2 Friday, April 5, 2019 BUSINESS QTerminals handles its heaviest cargo at Hamad Port QSE edges up on local QTerminals, which is jointly established by Mwani Qatar funds’ buy (51%) and Milaha (49%), handled the heaviest cargo since start of its operations at interests Hamad Port. The cargo unit was By Santhosh V Perumal handled with two Business Reporter mobile harbour cranes discharging the unit in a omestic funds’ increased buying interests yester- synchronised day led the Qatar Stock Exchange to gain 28 points tandem move. D to inch near the 10,200 level. QTerminals The insurance, transport, consumer goods and real provides estate counters witnessed higher than average demand, container, general which led the 20-stock Qatar Index to gain 0.28% to cargo, RORO, 10,189.56 points. livestock and Foreign institutions were seen marginally bullish in the off shore supply market, whose sensitive index is down 1.06% year-to- services in Phase date. 1 of Hamad Port, Market capitalisation gained more than QR2bn, or Qatar’s gateway to 0.36%, to QR566.92bn mainly owing to mid and small cap world trade segments. Islamic equities were seen gaining slower than the main index in the market, where local retail investors were in- creasingly net sellers. Trade turnover and volume were on the decline in the bourse, where the banking, real estate and industrials sectors together accounted for about 70% of the total volume. The Total Return Index gained 0.28% to 18,749.66 points, the Al Rayan Islamic Index (Price) by 0.02% to 2,389.69 points and the All Share Index by 0.32% to 3,075.39 points. The insurance index soared 2.54%, followed by transport (1.8%), consumer goods (0.8%), real estate (0.33%), industrials (0.25%) and telecom (0.14%); whereas banks and financial servfices was down 0.09%. Major gainers included Doha Bank, QIIB, Islamic Hold- Dubai realty downturn ing Group, Woqod, Qatar National Cement, Qatar Insur- ance, Al Khaleej Takaful, Doha Insurance, Nakilat and Ezdan; whereas Qatar Islamic Bank, Commercial Bank, Qatari German Company for Medical Devices and Gulf In- ternational Services were among the losers.

The QSE’s market capitalisation gained more than to ‘get much worse from QR2bn, or 0.36%, to QR566.92bn mainly owing to mid and small cap segments

Domestic institutions’ net buying increased considera- bly to QR24.47mn compared to QR3.13mn the previous day. Non-Qatari institutions turned net buyers to the tune of QR0.67mn against net profit takers of QR7.05mn on here,’ says Mark Mobius Wednesday. Gulf individuals were also net buyers to the extent of Bloomberg QR0.05mn compared with net sellers of QR1.62mn on Dubai April 3. However, local retail investors’ net profit booking grew significantly to QR16.15mn against QR1.62mn the previ- hree years ago, Mark Mo- ous day. bius saw his luxury apart- Non-Qatari individuals turned net sellers to the tune Tments in Dubai go up in of QR5.79mn compared with net buyers of QR4.01mn on fl ames. While the suites have by Wednesday. now been restored, the inves- Gulf institutions were also net profit takers to the extent tor has something else to worry of QR3.24mn against net buyers of QR3.08mn on April 3. about: the frenzy of construction Total trade volume fell 11% to 9.64mn shares, value by that’s adding to the existing glut 3% to QR238.24mn and transactions by 10% to 5,021. in real estate. The insurance sector’s trade volume plummeted 58% to The downturn “will get much 0.22mn equities, value by 51% to QR6.81mn and deals by worse from here,” said Mobius, a 43% to 194. pioneer in emerging-market in- The industrials sector reported a 33% plunge in trade vesting, adding he’d hold off on volume to 1.77mn stocks, 32% in value to QR36.34mn and buying more property. “I would 3% in transactions to 1,529. probably want to wait until The banks and financial services sector’s trade volume there’s a real slump when all this tanked 14% to 2.48mn shares, value by 12% to QR74.33mn new building comes in and peo- and deals by 7% to 1,085. ple are really hurting.” However, there was a 73% surge in the consumer goods Prices and rents have already sector’s trade volume to 0.26mn equities and value more dropped by as much as a third in than tripled to QR38.9mn on a 90% increase in transac- the past fi ve years during what tions to 333. S&P Global Ratings has called the A general view of a construction site in Dubai (file). Prices and rents have already dropped by as much as a third in the past five years during The telecom sector’s trade volume gained 12% to 0.93mn property market’s “long decline.” what S&P Global Ratings has called the Dubai property market’s “long decline.” stocks, whereas value shrank 35% to QR10.17mn and deals The slump will run for another by 57% to 256. 12 to 18 months because govern- analyst at Moody’s Investors dress Downtown and the two Dhabi to pull back from the brink may reinforce the city’s posi- The transport sector saw a 6% expansion in trade vol- ment measures to stimulate the Service. Mobius recalls how he luxury apartments he owns in the of default. Since prices peaked in tion on the world map, it won’t ume to 1.51mn shares and 2% in value to QR36.53mn but economy – including granting watched on television from Sin- 63-story tower. 2014, the $108bn economy had a be enough to revive the emirate’s on a 14% fall in transactions to 493. long-term visas which ben- gapore as revellers in Dubai rang Dubai, one of seven of the softer landing as it transitioned property sector unless the gov- The realty sector’s trade volume was up 3% to 2.47mn efi t the affl uent and people with in 2016 with fi reworks shooting UAE, lives and dies by real estate. from boom to bust. ernment relaxes its immigration equities, value by 18% to QR35.16mn and deals by 1% to specialised expertise – won’t be off Burj Khalifa. Just steps away When a property bubble burst Mobius said shares of Dubai’s policies, he said. 1,131. enough to revive demand, said from the world’s tallest build- a decade ago, it needed a $20bn developers aren’t cheap enough. “That’s where you’re going to In the debt market, there was no trading of treasury Lahlou Meksaoui, a Dubai-based ing, fl ames were engulfi ng Ad- rescue from neighbouring Abu While the World Expo 2020 fair have real problems,” he said. bills and sovereign bonds. Aramco accounts show $2tn valuation still a challenge

Bloomberg If however investors demand a higher yield to London compensate them for the risks involved with the government continuing to control a majority stake, then they might set the valuation even lower. For Saudi Aramco may be a profitable company, example, if they were to seek a similar yield to that but that likely still won’t be enough to persuade of Shell, 6%, the valuation would drop to just short investors the energy behemoth is worth $2tn. of $1tn. New financial details, disclosed by Moody’s It will all depend on what metrics investors choose Investors Service, show a company that paid to focus on. Those favouring price to earnings $58.2bn in dividends to the Saudi government last or enterprise value to underlying earnings, for year. Working back from that, the valuation would instance, might well value Aramco higher. But right be closer to $1.2tn if investors judge Aramco by the now in an era of vanishing yields, dividends are same metrics as other giant oil companies. king, particularly in the hydrocarbons sector where Saudi Arabia has stuck to its original $2tn worries about stranded assets are multiplying, even aspiration, even after some investors made it clear if they aren’t shared by Aramco’s management. in the early stages of the mooted initial public Aramco declined to comment via a spokesperson. off ering that they didn’t share that view. While Moody’s gave a dividend figure of $58.2bn, Aramco instead pushed back the timeline for Aramco itself in a presentation to potential its IPO to 2021, from 2018, and embarked on the bondholders said its “ordinary dividend” was $52bn acquisition of a majority stake in petro-chemical last year. There wasn’t an immediate explanation group Sabic worth about $69bn. for the discrepancy. It’s in the context of that purchase that Aramco’s Saudi Arabia has few options to boost the valuation financials are being released to prospective before resuming eff orts on the IPO. One way would bondholders funding the acquisition. They may be to cut the amount of tax the company pays, look for comparisons with other energy companies something the government already did in 2017. such as Exxon Mobil Corp, Royal Dutch Shell Plc, Aramco paid $102bn in income tax last year, almost Chevron Corp, Total SA, and BP Plc, who on average double the dividend amount, according to the off er a dividend yield of 4.9%. Applied to Aramco’s presentation to potential bondholders. A further cut dividend payout last year, that implies a valuation would reduce tax revenue at a time when the state Saudi Arabia has stuck to its original $2tn aspiration for Aramco even aft er some investors made it clear that they of about $1.2tn. is already struggling to cover its budget. didn’t share that view Gulf Times Friday, April 5, 2019 3 BUSINESS Fancy two years in a Singapore Jail? Just use the wrong ship fuel

Bloomberg Singapore

Singapore has a message for shipping companies considering cheating on rules starting next year to combat pollution to save a few dollars on their fuel bills: don’t. Captains and owners of vessels that burn overly sulphurous fuel in the Asian country’s territorial waters could face as long as two years in prison from the start of 2020, according to the Maritime and Port Authority of Singapore. If enforced, such a penalty would probably be among the strongest deterrents yet to dodging regulations that are supposed to cut emissions of a pollutant blamed for asthma and acid rain. From next year, the ships must emit 85% less sulphur in most parts of the world than they do in most places today. The world’s second-biggest port said that ships that fail to use an approved abatement technology such as a scrubber, alternative fuel or compliant fuel will also be considered non-compliant. The MPA didn’t clarify precisely what rule infringement would incur a prison sentence. Other penalties include a fine of up to S$10,000 ($7,400). Based on precedent in the US, the harshest penalties would likely be imposed if there were exacerbating factors like falsification of documents or obstructing justice, according to Magdalene Chew, a director at AsiaLegal LLC and Wole Olufunwa, a senior associate at Holman Fenwick Willan in Singapore. “Presumably, this may be used as a yard stick comparison for what penalties imposed for breach of the sulphur cap may look like,” Chew and Olufunwa, who specialize in shipping at the law firms, said in a joint e-mail. The most severe penalty Singapore ever imposed for breaches of maritime air pollution regulations was more than two decades ago, said Chew and Olufunwa. Then, a vessel’s owners, master and agents, who all pleaded guilty, were fined S$400,000 each for “flagrant disregard of any concern for the marine environment.” The ship’s master also received a three-month prison term for an oil spill charge, according to the law firms. Such penalties matter far beyond the confines of individual port states because there’s an expectation that The Tanjong Pagar container terminal (right) and the Keppel container terminal (left) stand in this aerial photograph taken above Singapore on July 2, 2015. Captains and owners of vessels that burn overly many owners – particularly in Asia sulphurous fuel in the Asian country’s territorial waters could face as long as two years in prison from the start of 2020, according to the Maritime and Port Authority of Singapore. If enforced, such a penalty – could start by ignoring the sulphur- would probably be among the strongest deterrents yet to dodging regulations that are supposed to cut emissions of a pollutant blamed for asthma and acid rain. emission rules. The extent to which that happens will have an impact on captains – more wary of cheating. reducing scrubbers that let them keep to the requirements under the IMO The authority will inspect both declare their method of compliance the maritime industry’s fuel-buying The penalties could mean tougher using oil with a higher sulphur content. 2020 regulations,” a spokesperson Singapore-registered ships as well as before arrival. Along with other nations, patterns. However, with thousands of times for shipping firms as they prepare To make matters worse, analysts said, adding that the authority has foreign-flagged vessels visiting the Singapore already banned open-loop ships each year stopping at the island for the rules. To comply, companies question whether suff icient low-sulphur issued technical guides, along with the port, and employ fuel-testing service scrubbers from discharging washwater, state to refuel while en route to other can either purchase more expensive, fuel will be available in time. Singapore Shipping Association, on providers for detailed laboratory the waste liquid containing impurities parts of Asia, the country’s deterrent cleaner fuel with less than 0.5% sulphur “MPA is also working closely with options available for ship operators to analysis of fuel samples. It will also after airborne sulphur emissions have could make many owners – and ship content, or they can install pollution- the industry to ease the transition comply. deploy electronic systems for ships to been removed.

Bloomberg QuickTake Q&A How cleaner cruise ships may mean pricier plane rides

By Sungwoo Park and Brian Wingfield 3. Why does shipping cause Singapore/London pollution? Because ships use heavy fuel oil – the gunk When it comes to pollution, there’s a big, that’s left over in the refining process once noxious cloud hanging over the shipping more valuable, less sulphurous products such industry. By one estimate, a cruise liner as gasoline, diesel and jet fuel have been belches out as much sulphur pollution as squeezed out of crude oil. Although IMO rules 380mn cars. To tackle the problem, maritime have progressively tightened sulphur limits authorities are drastically tightening since 2005, there’s a long way to go: A Finnish emission limits. But the new rules – due to study in 2016 estimated that air pollution kick in January 1, 2020 – are generating a from ships under current guidelines would degree of panic among shippers, as well as contribute to more than 570,000 premature concern that oil consumers, from airlines deaths worldwide between 2020 and 2025. to car owners, will face higher prices. 4. Which fuel will shippers Some refiners are rubbing their hands in switch to? anticipation. 1. Why the panic? While that’s still unclear, analysts expect increased demand for so-called middle Shipping companies face two options to distillates such as diesel, also known as marine comply: Purchase more expensive, cleaner fuel gasoil. Maersk Oil Trading says that may be or install pollution-reducing scrubbers that the “optimum route for compliance.” Some can handle oil with a higher sulphur content. analysts see diesel’s price premium over high But here’s the thing: Fitting a scrubber can sulphur fuel in 2020 at $450 to $500 per cost as much as $6mn per ship. Fewer than 3% tonne. In October, it was just $250. of the world’s 55,000 large vessels will have 5. Why might there not be enough scrubbers by the end of 2020, according to IHS fuel? A cruise liner departs Rio de Janeiro, Brazil (file). By one estimate, a cruise liner belches out as much sulphur pollution as 380mn cars. Markit. That means the vast majority will need to switch to using low-pollutant fuel. And here’s Because not all refineries can turn dirty fuel 6. Who else will suff er? out of the question, according to the IMO. commissioned by refiners and shippers another thing: It’s not clear there’ll be enough into IMO-compliant products. Simpler plants 7. Will crude oil demand be predicted there will be insuff icient refining clean fuel to go around. will be left with a lot of unwanted heavy fuel Potentially anyone who buys petroleum aff ected? capacity to produce the fuels needed to 2. What are the new rules? oil: SEB forecasts global demand for such products – including airlines, trucking comply with IMO 2020. On the other hand, fuel will shrink to less than a tenth of current companies and automobile drivers. That’s Demand from refineries for so-called sweet an IMO-backed report concluded there’d Fuel must have a maximum sulphur content of levels by 2020. JPMorgan Chase & Co says because the extra demand for cleaner fuel (low sulphur) crude such as Brent will likely be enough capacity. Groups including the 0.5%, down from the current 3.5% limit in most fuel oil profitability will collapse. By region, from shippers will mean refiners may produce rise, at the expense of sour (high sulphur) International Energy Agency say they expect cases. Known as IMO 2020, the regulation is US refiners may benefit more since they have lower quantities of products such as jet fuel and crude produced mostly in the Middle East. a bumpy ride, at least in the beginning. set by the International Maritime Organization, high-specification plants that produce lower gasoline. Consultant Energy Aspects forecasts Consultant FGE estimates that Brent’s premium Consultant Rapidan Energy Group said US a UN agency with responsibility for the safety amounts of heavy oil, while Europe will likely a tighter gasoline market as refineries adjust to to Middle Eastern benchmark Dubai oil could President Donald Trump’s concern over high and security of shipping as well as marine suff er without refinery upgrades, according to the changes. Some shippers contend that the more than double to at least $8 a barrel. oil prices represents an “under-appreciated pollution by ships. Sulphur emissions are linked ING Groep NV. Refiners including Repsol SA, new rules have the potential to upend world 8. So will there be enough fuel? risk” for the implementation of IMO 2020. to acid rain and medical conditions such as Phillips 66 and Hyundai Oilbank Co say they’re trade, since the cost of compliance will be too Height Securities contends Trump is unlikely to asthma. well-positioned to benefit. high for many. Delaying implementation is now That depends who you ask. A 2016 study intervene, since US refineries are set to benefit. Gulf Times 4 Friday, April 5, 2019 BUSINESS

China new bank loans seen rebounding in March; further easing expected

Reuters types of shadow bank financing. But interest margins would shrink industry- liquidity in the economy, was estimated But given the lag time between credit willingness to expand has limited corpo- Beijing if the March reading is in line with wide this year. to have swelled to 1.744tn yuan in March, growth and actual business expansion, rate loan demand. China’s central bank forecasts, total bank lending in the first While monthly readings can be vola- more than double the 703bn yuan in the analysts believe China will need to governor last month pointed out lending three months of the year would reach tile, outstanding yuan loan growth on a previous month, buoyed by an accelera- loosen policy further in coming months rates for small firms were still relatively New bank loans in China likely rebound- a record quarterly tally of 5.32tn yuan year-on-year basis likely held steady at tion in local government special bond to ensure a sustained economic turna- elevated because of concerns they are ed in March from a drop the previous ($792.60bn), suggesting months of 13.4%, the poll showed. issuance as Beijing looks to ramp up round. higher risks, and said policymakers will month, a Reuters poll showed, as policy- policy loosening by the central bank Broad M2 money supply was seen infrastructure investment. The central bank has already slashed push ahead with interest rate reforms to makers push the country’s banks to keep are starting to bear fruit. “Regula- rising 8.2% on-year, up from an 8% gain TSF includes off -balance sheet forms banks’ reserve requirements five times resolve the issue. lending to struggling smaller companies tors’ credit easing measures have in February. of financing that exist outside the con- over the past year and more reductions Premier Li Keqiang also said recently even if it risks more bad loans. significantly supported loan growth China’s biggest lender Industrial and ventional bank lending system, such as are expected in coming quarters, with that China will cut “real interest rate Chinese banks likely extended 1.2tn in March,” said Ning Zhang, a senior Commercial Bank of China (ICBC) is plan- initial public off erings, loans from trust analysts tipping the next move by mid- levels” and lower financing costs for yuan ($178.78bn) in net new loans in economist at UBS, while noting that ning more than 100bn yuan of loans to companies and bond sales. April. companies, though it was not clear which March, up about 7% from the same loan demand usually picks up due to small businesses this year at the behest More easing on the way Reluctant borrowers rates he was referring to. period a year earlier, a median estimate seasonal factors during the month. of Beijing, and has already doled out over Most analysts do not expect China to in a Reuters survey of 20 economists China’s banking and insurance regula- half of the amount in the first quarter. Signs are growing that a flurry of To be sure, loan growth in China has cut its benchmark lending rate unless showed. tor has told big state-owned banks to But analysts say it will be months yet support measures are starting to gain looked solid at the start of the year as the economic conditions deteriorate sharply, After a record credit pulse in January increase loans to smaller companies by before the credit surge translates into traction, after China’s economic growth central bank keeps its liquidity taps open. which would risk adding to a mountain into the slowing economy, new lending more than 30% in 2019, adding that it stronger economic activity, assuming slowed last year to a 28-year low. But with company earnings slumping of debt. dropped sharply to 885.8bn yuan in would also increase its tolerance for non- many companies are using the funds for Activity in the vast manufacturing sec- to multi-year lows, business confidence But sources have told Reuters the cen- February, which analysts attributed performing loans at small firms. expansion and not merely refinancing tor unexpectedly returned to growth in remains weak overall. tral bank may cut money market rates, to seasonal factors and regulators’ The country’s top four banks warned existing debt at lower rates. March, while the services sector acceler- A vice president of Agriculture Bank which is has already been guiding lower concerns about a flare-up in some last week that bad loans could rise and TSF, a broad measure of credit and ated, business surveys showed. Of China said last week that a lack of in various ways.

Apple cuts iPhone Before India elections, RBI cuts XR prices in India rates by 25 bps to spur growth

Reuters Reuters Mumbai Mumbai

pple Inc has cut prices of ndia’s central bank cut its policy in- one of its latest iPhones terest rate by 25 basis points yester- Ain India by around one- Iday, in a widely expected move to fourth, sources said, as the US boost the economy just a week before tech giant looks to boost sales voting begins in an election that will de- in the world’s second-biggest cide whether Prime Minister Narendra smartphone market following a Modi gets a second term. similar move in China. Though infl ation remains subdued, The price of the 64 GB iPhone falling farm incomes and record high un- XR has been reduced by at least employment are seen hampering Modi’s Rs17,900 ($259) due to a price prospects going into the polls after eco- cut and a credit card cashback nomic growth slid to 6.6% in December campaign, two people with di- – its slowest in fi ve quarters. rect knowledge of the matter Following a meeting of its monetary told Reuters yesterday. policy committee (MPC), the Reserve “Apple is going to change their Bank of India highlighted the need to game,” one of the people said, boost domestic growth due to global adding the company could also headwinds. adjust prices for other devices “The need is to strengthen domestic depending on their demand. growth impulses by spurring private in- On Apple’s India website, the vestment which has remained sluggish,” price of the 64 GB iPhone XR the RBI wrote in the policy statement. was unchanged at Rs76,900, but The six-member MPC cut the repo is on sale for less than Rs59,000 rate to 6.00 % as predicted by 57 of 67 at stores, the people said. analysts polled by Reuters last week. Prices for the two other XR The reverse repo rate was reduced to variants have also dropped, they 5.75%. said. Four out of six MPC members voted The XR is the cheapest series for a 25 basis points cut, while two called among iPhones Apple launched for the rates to remain unchanged. last year. Five of them called for the policy stance to remain “neutral,” while one The price reduction comes MPC member voted for it to be changed aft er iPhone prices were to “accommodative”. lowered in China for the While the central bank projected re- second time this year, tail infl ation at 3.8% by January-March as Apple wrestles with a 2020 – within its target of 4% – it also prolonged sales slowdown warned of the upside risks to price pres- in the world’s largest sures if food and fuel prices rose abrupt- The Reserve Bank of India governor Shaktikanta Das arrives to attend a news conference after a monetary policy review in Mumbai. Das said the RBI would issue a smartphone market partly ly, or if fi scal defi cits overshot targets. revised circular on the resolution of stressed assets after the Supreme Court this week struck down its earlier directive that imposed tougher norms on banks dealing due to a slowing economy Ahead of elections, the major parties with non-performing loans. have made promises for heavy spending The change in pricing of the in order to woo voters, leaving the central could reduce rainfall and lead to a spike economic slowdown become more pro- tive transmission of rates,” governor in a phased manner. The RBI also pro- iPhone XR is a short-term pro- bank unsure about how fi scal plans will in food prices. nounced. Shaktikanta Das told reporters in Mum- posed opening new channels for non- motional off er, an industry pan out. “While RBI has highlighted the upside The RBI lowered its economic growth bai. “We hope to come out with some resident Indians to participate in the source said. “Should there be a fi scal slippage... risks to infl ation, on account of El Nino, forecast to 7.2% for the 2019/20 April- guidelines which will ensure eff ective government debt market, with settle- Apple did not respond to a re- this could crowd out private investment, food prices and the fi scal situation, I March fi scal year, from the February transmission.” ments via International Central Securi- quest for comment. impact potential output, and result in think the tone is largely dovish,” said view of 7.4%. Das also said the RBI would issue a ties Depositories. The price reduction comes af- higher infl ation,” the RBI said in a sepa- Sujan Hajra, chief economist at Anand With infl ation so low, some analysts revised circular on the resolution of The 10-year benchmark bond yield ter iPhone prices were lowered rate monetary policy report. Rathi Securities in Mumbai. had hoped the RBI would cut interest stressed assets after the Supreme Court rose to 7.50% from 7.37% before the in China for the second time Speaking at an industry event, Fi- “If infl ation continues to undershoot rates more aggressively to boost eco- this week struck down its earlier direc- rate decision and the rupee weakened to this year, as Apple wrestles with nance Minister Arun Jaitley said that the the 4% level, a rate cut of 25 to 50 basis nomic growth. tive that imposed tougher norms on 69.11 per dollar from 68.82. a prolonged sales slowdown in government would continue with fi scal points cannot be ruled out in the next 12 The MPC’s reluctance could be part- banks dealing with non-performing The broader NSE stock index was little the world’s largest smartphone consolidation and pursue policies to en- months.” ly explained, however, by commercial loans. changed at 11,648.20 points. market partly due to a slowing able further reduction in interest rates if Annual consumer infl ation was just banks only reducing their lending rates In an eff ort to make more cash avail- “For markets, the cat was already out economy. it was re-elected. 2.57% in February following fi ve months by a token 5-10 basis points after the able to banks for lending, the RBI per- of the bag,” Lakshmi Iyer, chief invest- In India, Apple’s iPhones are Meanwhile, weather forecasters have of defl ation in food prices, and the RBI RBI’s last 25 bps cut in February. mitted the use of a further 2% of banks ment offi cer for debt at Kotak Mahindra up against the more competi- warned that this year’s monsoon season said it could be forced to revise down “We’re conscious of the fact that mandatory bond holdings towards Asset Management. “The election’s out- tive pricing of rival handsets could suff er the El Nino eff ect, which its infl ation projection if the current there has to be appropriate and eff ec- meeting their liquidity coverage ratio come will now hog the limelight.” from South Korea’s Samsung Electronics Co Ltd and China’s OnePlus. “The focus of this entire (price cut) exercise is to win customers China struggles to ease concerns over Silk Road project as summit looms who would have thought of going to Samsung or OnePlus, to make them think whether they Reuters The country’s top diplomat, Yang Jiechi, House National Security Council senior access to the Chinese market. German maier, a Merkel confidant, is attending the can spend some extra money on Beijing/Brussels said on Saturday that almost 40 foreign director for Asian aff airs Matt Pottinger to Chancellor Angela Merkel, speaking at summit, along with French Foreign Minister an iPhone XR – it’s more bang for leaders would come, and also took a swipe the summit. the EU summit in March, grumbled about Jean-Yves Le Drian, with Altmaier saying the buck,” said Rushabh Doshi of at “prejudiced” critics of the programme This time, Washington said it will not Italian Prime Minister Giuseppe Conte’s they wanted to “safeguard European inter- tech research fi rm Canalys. China is struggling to ease worries about who seek to besmirch it with concerns like dispatch high-level off icials due to its decision to join the project, although ests in co-operation with China there”. Samsung’s latest Galaxy S10e President Xi Jinping’s signature plan to “debt traps”. concerns about the project. she said Germany will play in active Several EU off icials said the European is priced at Rs55,900 while the build a new Silk Road as it readies for “The Belt and Road is open, inclusive Lower-level staff ers, possibly from the role in the Belt and Road and called for Commission was still looking at who to OnePlus 6T starts at Rs37,999. a major summit in late April, especially and transparent. It does not play little geo- US embassy in Beijing, might go to the reciprocity. send as a replacement for Vice President Apple’s share of India’s among Western nations wary about debt, political games,” Yang, who runs the ruling summit to observe and take notes, sources Conte is due to attend the summit. Jyrki Katainen, who attended 2017’s Belt $400-plus smartphone seg- transparency and Chinese influence. Communist Party’s foreign aff airs commit- familiar with the matter said, though a final Rome says signing onto the Belt and and Road summit and has cited a calendar ment stood at 23% in 2018, be- While China gained a major victory by tee, told the off icial People’s Daily. decision has yet to be made. Road will bring much-needed investment clash with the EU-Japan summit for not hind both Samsung and OneP- convincing Italy to become the first G7 The United States, locked in a bitter China says it always welcomes “like- and boost trade and has pointed to the fact being able to go this time. lus, showed data from Hong nation to formally sign on to the plan last trade war with China, has been a particular minded countries” to take part in the that a dozen EU countries have already China has been on a push to show that Kong-based tech researcher month during Xi’s visit to Rome, others critic of the Belt and Road, calling it an project. signed memoranda of understanding the Belt and Road remains popular, despite Counterpoint. in the West have been less keen to jump “infrastructure vanity project” when Italy It has not disclosed a full list of the lead- (MOUs) with China, including Hungary, cooling enthusiasm from governments But with a share of just 1% of onboard, though many have kept an open signed on. ers planning to attend the event. Poland, Greece and Portugal. including in Pakistan, Sri Lanka, Malaysia India’s entire smartphone mar- mind. Jonathan Cohen, acting permanent But some of Beijing’s closest friends Safeguarding interests and the Maldives, where new administra- ket, Apple responded last year by The Belt and Road Initiative, as it is representative of the United States at the have confirmed they will go, including Rus- tions are wary of deals struck with China by revamping its sales and distribu- formally called, is aimed at building a vast United Nations, last month slammed Chi- sian President Vladimir Putin and Pakistan The EU last year proposed its own their predecessors. tion strategy. network of infrastructure connecting China na’s attempt to get Belt and Road language Prime Minister Imran Khan. infrastructure scheme, but it has denied it The Chinese government’s top diplomat, Apple also plans to increase to Central Asia, Southeast Asia, Europe and into a resolution on Afghanistan, saying EU wariness is trying to counter China’s ambitions. State Councillor Wang Yi, who ranks below local production in a move that beyond, much like the ancient Silk Road. it had “known problems with corruption, “For China it is a question of power Yang, last month touted the success of the could help it limit the impact of Following the first Belt and Road summit debt distress, environmental damage, and The European Union, China’s largest projection. $57bn China-Pakistan Economic Corridor, a China-US trade war. two years ago, in a luxuriously appointed lack of transparency”. trading partner, has also been in a bind China is corrupting what should be a a major Belt and Road scheme. Wang said The company will soon begin convention centre in hills north of Beijing, Wu Haitao, chargé d’aff aires of China’s about how to respond. level playing field by off ering loans that after meeting Pakistan’s foreign minister assembling its top-end phones the second one is scheduled for the same Permanent Mission to the United Nations, Last week, Europe’s top leaders told Xi send country debts soaring and create that less than 20% of funding for the China- through the local unit of Hon location in late April. said the rebuke was “contrary to the facts they wanted a fairer trading relationship a culture of economic dependency on Pakistan Economic Corridor came from Hai Precision Industry Co Ltd China is billing it as the country’s most and fraught with prejudice”. with China, signalling an openness to Beijing,” one EU off icial said. Chinese loans, with the rest made up of (Foxconn), Reuters previously important diplomatic event of the year. In 2017, the United States sent White engage with the project if it meant more German Economy Minister Peter Alt- direct Chinese investment and free grants. reported. Gulf Times Friday, April 5, 2019 5 BUSINESS

Gold rates touch Nomura is axing jobs, bank new peak in Pakistan

Internews branches to cut costs by $1bn Karachi

Reuters Gold hit a new all-time high at Tokyo Rs72,200 per tola (11.66 grams) in Pakistan after jewellers included the impact of a fresh apan’s Nomura Holdings will cut drop in the rupee’s value in re- $1bn in costs from its wholesale tail price of the precious metal. Jbusiness and shut more than 30 of All Sindh Saraf and Jewellers 156 domestic retail branches in its latest Association (ASSJA) an- overhaul, the ailing bank said yesterday. nounced a hike of Rs1,000 per Nomura also plans to axe about 100 tola to Rs72,200 following an jobs in London – the centre for its Euro- increase of $3 per ounce (31.10 pean investment banking business – as grams) to $1,294 in the world part of the overhaul, a banking source market. told Reuters. “The rupee depreciation The wholesale segment has been led to a rise in gold prices in dragging on the performance of Japan’s Pakistan despite the fact that it biggest brokerage and investment bank, (imported commodity) largely pushing it to its heaviest quarterly loss remained stable in global in nearly 10 years in the three months to markets,” Pakistan Mercantile December. Exchange (PMEX) managing Nomura then put the business, which director Ejaz Ali Shah said. serves corporations and institutional He pointed out that Pakistan investors, under review as CEO Koji did not produce any gold and Nagai focused on reducing reliance on met its requirement through volatile global markets and building up imports. Therefore, the adjust- stable revenue fl ows. ment in the gold price was a The target of cutting $1bn in costs will must to pass on the impact of be achieved over the “medium term”, rupee depreciation. with 60% completed by the end of the The State Bank of Pakistan fi nancial year to March 2020, Nomura’s reported that the rupee lost joint COO Kentaro Okuda said in an in- Rs0.30 to Rs141.39 to the vestor day presentation. greenback in the inter-bank The cost reduction will result in market. revenue gains between $300mn and With this, the rupee has $400mn, with the ultimate target of shed a total of Rs2.55, or 1.8%, building a wholesale platform that de- in the past four weeks since livers consistent pretax income of $1bn, March 8, 2019. In line with this, he said without giving a timeframe for the open market also saw the that goal. rupee lose another Rs0.50 to The segment swung to a pretax loss of Rs143 against the dollar. The ¥95.9bn ($861mn) in the third quarter, central bank spokesman said versus a ¥14bn profi t a year earlier. the other day “the rupee is Nomura’s wholesale business has moving downwards on market been squeezed by lower trading revenue expectations based on (weak) in fi xed income and what the bank de- Pedestrians walk past a branch of Nomura Securities, a unit of Nomura Holdings, in Tokyo. The ailing bank will cut $1bn in costs from its wholesale business and shut economic fundamentals.” scribed yesterday as rigid indirect costs, more than 30 of 156 domestic retail branches in its latest overhaul, sources said yesterday. He agreed that market adding that revenue for the business fell expectations for the Pakistan- 24% to $4.9bn in the past fi nancial year. Nomura’s business strategy, said the number of European government bond The plans include pursuing “strategic ing cost-cutting by shutting down do- IMF loan deal and outlook on The bank said it would “de-empha- investment bank will also focus more issuers. growth opportunities” in China, where mestic branches as they grapple with the balance of payments deficit sise” all operations in Europe, the Mid- on the corporate business rather than When asked about how many jobs the bank last week received regulatory ultra-low interest rates and a declining – lower dollar inflows than dle East and Africa while sharpening rates. will be cut as part of the global over- approval to set up a majority-owned population at home. outflows – were dragging the its focus in Asia, excluding Japan, and It will also shift focus from bond haul, Nomura CEO Nagai declined to brokerage joint venture. Nomura’s plans to pare its retail foot- rupee down. the Americas, where it aims to increase trading to the primary market manag- comment. For the year ended in March, ana- print at home comes after rival Mizuho The PMEX MD added that business with corporate clients. ing bond sales for borrowers. A document seen by Reuters shows lysts expect the company to post its fi rst Financial Group last month said that it gold prices in the domestic The planned London job cuts rep- Nomura will look to maintain all of its that Nomura would look for a 50% cost annual loss since 2009, Refi nitiv data would book about ¥500bn of impair- market had risen in line with resent part of this push, the banking existing relationships regardless of the reduction in its trading business in Eu- shows, hurt also by a steep drop in profi t ment losses on fi xed assets, including rupee deprecation in the last source said, declining to be named. job losses, he added. rope, Middle East and Africa while also at its retail business. costs from closing branches at home 15 months compared to stable The source, who has knowledge of The bank is a primary dealer for a aiming to digitise its systems. Japanese banks have been accelerat- and software-related expenses. prices in world markets. Data suggests gold has shot up over 40% in line with 34% depreciation of the rupee in the last 15 months. Contrary to that, gold slight- ly increased by 2.5% in world Ghosn vows he won’t be ‘broken’ after re-arrest markets during that period. He said gold had emerged as a safe haven for investors AFP the law” and “should not be tolerated zen.” French Economy Minister Bruno during the current inflationary Tokyo in a civilised nation.” Le Maire stressed Ghosn “should ben- phase across the world. He added his client had expected efi t from the presumption of innocence Since there was no prosecutors would rearrest him and and consular protection” in an inter- inflationary pressure in the apanese prosecutors yesterday re- had therefore prepared a video, without view with BFMTV French television past 15 months at the global arrested Carlos Ghosn on fresh al- specifying the contents or exactly when station. level, investors found other Jlegations of fi nancial misconduct, it would be released. Yesterday’s arrest came after French commodities like currencies as the former auto tycoon slammed an Visibly angry, he vowed to fi ght likely car fi rm Renault, which Ghosn also and petroleum crude oil as “outrageous and arbitrary” detention attempts by the prosecutor to extend once headed, handed French prosecu- more attractive investment and vowed he would “not be broken.” the detention, claiming the arrest was tors documents showing the auto ty- instruments during the period, In the early hours, offi cials raided the “not necessary” and designed merely coon had authorised suspicious trans- hence, gold remained stable. central Tokyo apartment the 65-year- to pile pressure on Ghosn. fers worth million of euros. “Gold has been moving in a old Ghosn has called home since win- He added prosecutors had confi scat- A Nissan spokesman said the fi rm’s band of $1,250-1,350 per ounce ning bail last month after more than ed not only diaries and documents be- own internal probe had uncovered in world markets for quite a 100 days of detention on diff erent longing to Ghosn, but also the passport “substantial evidence of blatantly un- long time now,” he said. charges. and phone of the tycoon’s wife Carole. ethical conduct” and that their focus He added that PMEX did not It was the latest twist in a roller- Ghosn already faces three separate was on “addressing weaknesses in gov- record any unusual growth in coaster drama that has gripped Japan charges. The fi rst two relate to the al- ernance that enabled this misconduct.” trade volumes of gold these and the rest of the world since his shock leged deferring of around $80mn in Ghosn had maintained his silence days and it was oil which at- arrest at a Tokyo Airport on November income and concealing this in offi cial since paying around $9mn to win bail tracted investors’ attention. 19. documents to shareholders. on March 6 when he walked out of his “Gold and oil come to about Prosecutors said Ghosn had been de- Junichiro Hironaka, lawyer for ousted Nissan boss Carlos Ghosn, speaks at a news The third, more complex, charge is detention centre dressed in a work- 25%-30% each of the total tained over transfers of Nissan funds conference in Tokyo. Hironaka, known as the “Razor” for his mental sharpness, said that he attempted to transfer personal man’s uniform in a bizarre attempt to trade volumes worth Rs10bn- totalling $15mn between late 2015 and the fresh arrest of Ghosn was “against the spirit of the law” and “should not be losses to Nissan and paid a Saudi con- evade the world’s media. Rs15bn a day at the Pakistan the middle of 2018. tolerated in a civilised nation.” tact who provided collateral from the Reports emerged early Wednesday Mercantile Exchange,” he said. They suspect Ghosn used $5mn of company funds. that prosecutors were considering fur- Beside inflationary days, gold that for personal expenditure. detention. “Why arrest me except to claims and may re-arrest him again or In an interview with French televi- ther charges against him whereupon also moves up sharply when “The suspect... was responsible for try to break me? I will not be broken,” seek to hold him in pre-trial detention. sion to be aired later yesterday, Ghosn Ghosn suddenly popped up on Twitter political tension grips the world. overseeing the whole of Nissan’s oper- said the former high-fl ying executive. Deputy chief prosecutor Shin Kuki- reiterated he was “combative and in- to announce he would “tell the truth” “It recently shot up close ations and performing his duty loyally He has denied any wrongdoing moto justifi ed the arrest by saying they nocent” but acknowledged “it’s hard.” about his case at a news conference on to $1,350 an ounce over the so as not to cause losses to Nissan, but and took to Twitter for the fi rst time judged there was a “risk of destruction “A lot of lies have been told and these April 11. US-China trade tension and end he betrayed that duty in order to benefi t Wednesday to announce plans to “tell of evidence.” lies have come one after another,” he His tweet, which his representa- of inconclusive talks between himself,” they said in a statement. the truth” at an April 11 news confer- But Ghosn’s lawyer Junichiro Hi- said. Ghosn, who holds French, Bra- tives confi rmed was authentic, sparked US and North Korea over Ghosn released a statement through ence that now looks unlikely. ronaka, known as the “Razor” for his zilian and Lebanese nationalities, ap- questions about his bail conditions, Pyongyang shunning nuclear his representatives attacking what he Prosecutors can hold Ghosn for up to mental sharpness, told reporters the pealed to the French government to which were thought to include a ban on arsenal activities,” he said. called the “outrageous and arbitrary” 22 days while they investigate the new fresh arrest was “against the spirit of “defend” him and his “rights as a citi- Internet use.

Ambani, Mittal to weigh India’s Zee Entertainment stake in content grab

Bloomberg Deliberations are preliminary and may Vodafone Group Plc and KDDI Corp the Indian market,” he said, referring to Zee, which boasts 1.3bn viewers across digital services to its portfolio, such as Mumbai not lead to a transaction, they said. have been buying film and television the ability of mobile players to bundle 173 countries through its 78 channels apps for e-books and music, its scale A representative for Zee said the production and cable TV assets to carriage, content and commerce on a and 4,800 movie titles, has previously hasn’t matched Jio, which already company doesn’t comment on bolster earnings as subscribers level off . single platform. attracted interest from Sony Corp and off ers a bouquet of services including Billionaires Mukesh Ambani and speculation though it is in “steady Bidding for such assets has accelerated Shares of Zee climbed 3.2% in Mumbai Comcast Corp but hasn’t found a buyer Saavn, a music app, television, news Sunil Bharti Mittal are considering dialogue” with potential partners. as entertainment providers themselves yesterday, leading gains in the S&P BSE yet. The television network has off ered and movies. competing bids for a stake in a troubled A spokesperson for Bharti said the gather content to off er programming 100 Index. Reliance Industries Ltd, Jio’s to sell half of the controlling family’s In February, Bharti revealed plans to Indian television network, people with company is not in the race to acquire via the Internet and compete with parent company, declined 1.6% while shares, of which 59% is pledged as raise as much as Rs320bn ($4.6bn) knowledge of the matter said, as their the television network. upstarts like Netflix Inc and Amazon. Bharti rose 1.9%. collateral to lenders. from a rights issue and bond sales telecom carriers race for content in the Reliance Jio Infocomm did not com Inc’s Prime service. Heavily indebted Jio stormed the market in 2016 with to build a war chest as competition world’s second-biggest mobile market. immediately respond to e-mails “The objectives of the telcos will not free calls and cheap data and forced with Jio intensifies. Last year, Bharti Mittal’s Bharti Airtel Ltd has started requesting comment. be necessarily to own Zee, but have Zee, the heavily-indebted broadcaster some rivals to retreat or merge. Bharti, entered into a content deal with Zee for due diligence of Zee Entertainment A successful deal would help the adequate strategic stake so as to play controlled by former rice trader-turned- once No 1, has been relegated to exclusive videos on Airtel applications. Enterprises Ltd and is expected to winning bidder add a slew of video into the distribution opportunity on media mogul Subhash Chandra, is second position after Vodafone’s local Bharti and Singapore make a formal proposal soon, one services in the scramble for user their high-speed networks,” Mumbai- seeking a strategic investor to help unit combined with billionaire Kumar Telecommunications Ltd plan to make of the people said, asking not to revenue as the government prepares to based Alok Shende, principal analyst at fend off competition from Netflix, Mangalam Birla’s Idea Cellular. a combined off er of about Rs61.5bn to be identified citing confidentiality. auction 5G airwaves this year. Some of consulting firm Ascentius Insights said. Amazon and hundreds of local TV War chest acquire about 60% of Dish TV India Ltd, Ambani’s Reliance Jio Infocomm Ltd is the world’s largest telecommunications Interest in Zee “is reflective of the triple channels vying to tap India’s booming CNBC-TV18 reported yesterday, citing also considering a bid, the people said. companies including AT&T Inc, play opportunity that is unfolding in demand for content. While Bharti has been adding some people it didn’t identify. Gulf Times 6 Friday, April 5, 2019 BUSINESS Heart over head, Chinese retail investors rush into municipal bonds

Reuters been given permission by the central economy growing at its slowest pace in year Ningbo municipal bonds yielding Hua Chuang Securities in Shanghai. “I debted Chinese provinces have total debt Singapore/Shanghai government to raise between 4.5tn yuan three decades. 3.32% a year to maturity. cannot imagine the central government exceeding 300% of their annual revenues. to 5tn yuan ($672bn to$746bn) via bond Local governments and central govern- In Beijing, 65-year-old retired teacher would tolerate defaults in municipal Indeed, China’s finance minister, Liu sales this year alone. ments are seen as inseparable apparatus Guo Xiulan, who pulled 50,000 yuan out bonds.” Kun, warned local governments last When the major port and industrial hub of While it is not clear how many of the in the Communist Party-controlled politi- of wealth management products yielding Amanda Du, senior analyst at Moody’s month they would be subject to more Ningbo sold China’s first municipal bonds bonds will be sold to retail investors, the cal system, even though Beijing wants 5% to buy local government bonds yield- Investors Service, reckons that borrow- budget pressure as the economy slows to retail investors, an amount of $43mn debt is not without risk. regional municipalities to be accountable ing 3.25%, said she did not understand ing from retail investors could potentially down and Beijing pushes through with was snapped up in just five hours. Local governments and their financing for their borrowings. credit ratings and had not looked into the make local governments more accounta- tax cuts. One buyer was Yan, an accountant vehicles already have a mountain of debt Local governments have more than city’s fiscal health. ble. Residents are generally more familiar He noted at a press conference that from the city in the eastern province of and analysts question if many municipal 50tn yuan in debt outstanding, includ- “I was born in Beijing; I live in Beijing. than investors from elsewhere with local some regions were having diff iculty pay- Zhejiang, who bought 100,000 yuan authorities can generate the revenues to ing through the use of off balance-sheet I feel Beijing’s construction needs the projects since they sit on their doorstep. ing salaries and maintaining operations ($14,900) of the bonds, impressed by a meet their debt obligations, especially financing vehicles, according to Goldman support of the ordinary people,” said Guo, “An individual investor in a bond that and social security. call from a local bank to “love Ningbo as the central government has flagged Sachs, and they have been the country’s who says she doesn’t understand credit finances a shanty town redevelopment In some ways, the Chinese debt land- forever by holding Ningbo bonds”. She be- tightening budget pressures. fastest-growing borrowers of recent ratings. project could be living just several blocks scape is like the European Union, said eco- lieves the money will be used to improve Chinese credit rating agencies also give years. The prospectus said the bond would away. nomics professor Lu. Both have economic lives and the local government will not the local government bonds top-notch Lu Ming, economics professor at Antai fund shantytown redevelopment and land This kind of supervision can pressure imbalances and the risk is that bailouts of defraud her, she said. AAA ratings, providing no distinction for College of Economics & Management in purchases. the government to improve governance weak borrowers will encourage them to China piloted the first batch of local investors between the issuers and their Shanghai, said many local governments Still, their expectations may not be mis- as well as information disclosure on that simply borrow more. government bonds targeting retail inves- ability to service and ultimately pay off are making capital of the implicit guaran- placed if institutional buyers, who have project,” Du said. “Developed countries in the EU are tors in recent weeks at bank outlets in the debt. tee of debt by the central government. also snapped up local government bonds, Moral hazard? worried that if they help pay off debts for six regions including Beijing and Ningbo, Still, many retail investors believe “Without such a backing, no one would are anything to go by. less developed nations such as Greece, raising a billion dollars. the bonds are eff ectively guaranteed lend you money.” “At the moment, you don’t even see Investment bank CICC said investors there would be moral hazards. The bonds sold like hot cakes, illustrat- by the central government, which has Indeed, Yan, who declined to provide defaults by bonds issued by local govern- should take a closer look at an issuer’s Greece would continue to borrow... ing a potentially lucrative outlet for local called on local authorities to finance new her given name, said she didn’t read the ment financing vehicles,” said Wang Ming, ability to pay off debt. Economically speaking, the situation is governments who analysts estimate have infrastructure projects to support an bond prospectus when she bought five- a manager at the trading department of The bank estimates the 23 most-in- similar in China.”

RBI’s lower growth Asia bourses mixed as rally forecast dents is stunted by proﬁ t-taking India equity

AFP markets Hong Kong

IANS sian markets were mixed yester- Mumbai day as growing expectations that AChina and the United States will reach a trade agreement were off set by ey Indian equity indices profi t-taking after an extended rally. fell yesterday as the Re- Hopes Britain will avert crashing out Kserve Bank of India (RBI) of the EU next week also instilled some lowered the country’s growth optimism on trading fl oors, with the projection for 2019-20 to 7.2%. pound extending gains. Accordingly, the equity mar- High-level talks between the world’s ket had a flat start in line with top two economies resumed Wednes- sluggish global cues only to day in Washington, with reports saying slide during the mid session. they are edging towards an agreement The S&P BSE Sensex fell to bring the curtain down on a long- 192.40 points or 0.49 per cent running row that helped batter markets to 38,684.72 points, while the last year. NSE Nifty50 declined 45.95 Bloomberg News said the deal they points or 0.39% at 11,598 are working on would give China until points. 2025 to meet pledges on purchases and On sector-specific ba- to let US fi rms wholly own their busi- sis, gains were made by BSE nesses in the country. Healthcare, Auto and Realty It said the aim was to get everything indices, while top losers were in place for presidents Donald Trump BSE IT, Oil & Gas and Energy and Xi Jinping to sign off on a trade deal. indices. White House economic adviser Larry “Market consolidated as the Kudlow the talks were “making good outcome from RBI monetary headway” but added: “We’re not there policy was in line with expecta- and we hope this week to get closer.” tion with a 25 bps cut in rate,” The Bloomberg report follows an ar- said Vinod Nair, head of research, ticle in the Financial Times saying they Geojit Financial Services. were closing in on an agreement. “Investors turned cautious “The market is becoming more con- about the downward revision vinced that a deal is coming between in the GDP growth to 7.2% for China and the US,” Greg McKenna, at FY20 while premium valuation McKenna Macro, said in a note. “En- and concerns over monsoon forcement on the US side and lifting further impacted the senti- tariff s to cement the deal on the Chi- ment. nese side seem now to be the points of However, dovish view by contention.” David Madden, a market global central banks and a like- analyst at CMC Markets UK, pointed ly better results in Q4FY19 can out that Kudlow had fl agged move- stabilise the market in the near ment on intellectual property theft and Investors sit in front of an electronic stock board at a securities brokerage in Shanghai. Chinese shares jumped 0.9% to 3,246.57 points yesterday. future.” hacking, which are key bugbears of the In its first monetary policy White House. 0.8%, Wellington dropped 0.5% and Asian investors were given a positive May met opposition Labour leader Jer- narrowest margin for draft legislation review of the current fiscal, the “These issues have been a major Manila fell 0.7%. lead from Wall Street, although gains emy Corbyn on Wednesday for crisis that would force the government to RBI noted signs of weakness point of contention for the US, and the However, Tokyo ended 0.1% higher at there were tempered by data showing talks on resolving the Brexit crisis with seek to delay Brexit beyond the April 12 in domestic investment activ- fact that they are being discussed, in- 21,724.95 and Shanghai jumped 0.9%, private US fi rms hired new staff at their just over a week to go before Britain is deadline. ity as reflected in a slowdown dicates that Beijing are serious about while Singapore and Seoul each added slowest pace for 18 months in March. due to leave the European Union. The premier has already said she will in production and imports of reaching a deal,” he added. 0.2%. The below-forecast reading comes Representatives for both sides de- seek a second “short” delay at an EU capital goods. Global stocks have enjoyed a stel- Mumbai was fl at, while India’s ru- days before the release of key govern- scribed the talks as “constructive” as summit on April 10. Consequently, it lowered the lar year so far thanks to confi dence in pee fell 0.6% after the central bank cut ment fi gures, which are closely watched they look to avert a potentially calami- The developments supported the country’s growth projection for a deal being reached. In Asia yesterday, interest rates for the second time this for an idea about the state of the US tous no-deal divorce, with another pound but parliament remains divided 2019-20 to 7.2%. Hong Kong fell 0.2% to 29,936.32 after year, a week ahead of a general election economy. meeting planned for yesterday. with hardliners fearing a “soft” divorce “We witnessed some re- a seven-day rally, while Sydney was off and with the economy stuttering. In London, Prime Minister Theresa At the same time MPs voted by the will leave Britain still linked to the bloc covery post the RBI monetary policy. But it was clearly a short-lived bounce-back as the outcome of RBI cutting the repo rate by 25 bps was already discounted in the prices,” said Emerging shares retreat as markets Sameet Chavan, chief analyst- technical and derivatives, An- gel Broking. await more clues on US-China talks “Today’s decline was just a natural extension of yesterday’s profit booking. Reuters Stephen Innes, head of trading and es from earlier in the session, after So many stocks had entered London market strategy at SPI Asset Man- the country’s central bank cut the an extremely overbought terri- agement. key interest rate by 25 basis points tory; so they needed to cool off Innes added that since the US- to 6%, as expected. a bit and this is what we have merging market shares re- China trade dispute is the strongest The Reserve Bank of India high- seen in the last couple of days.” treated from near eight headwind for the markets to tackle, lighted the need to boost domestic In terms of investment, Emonth highs yesterday, and it will continue to provide a sub- growth due to headwinds “on the the foreign institutional in- developing market currencies stantial boost to investor sentiment global front”. As general elections vestors sold stocks worth mostly weakened against a soft dol- only if both sides can agree on the loom, the underperforming econ- Rs2,261.9omn, while the lar as markets await more concrete final pieces of this intricate puzzle. omy could hamper Prime Minister domestic institutional in- evidence of progress in US-China While shares in Hong Kong fell Narendra Modi’s prospects of get- vestors sold stocks worth trade talks. 0.1% and those in India shares ting re-elected for a second term. Rs12,061.60mn. MSCI’s index of emerging market were little changed, strong gains South Africa’s rand dipped 0.4% According to Deepak Jasani shares fell 0.2%, breaking a five- in mainland China equities limited after Public Enterprises Minister of HDFC Securities, the weak- day winning streak that was sup- declines on the broader EM stocks Pravin Gordhan said the highest ness also came on the back of ported by receding fears of a global benchmark. levels of government were discuss- the RBI not changing its stance economic slowdown and positive Russian and South African shares ing another support package for in the monetary policy to ac- news from trade negotiations be- slipped more than 0.15% each, highly indebted utility Eskom, on commodative from neutral. tween the world’s two largest econ- while Turkey stocks ticked 0.6% top of the 69bn rand ($4.87bn) bail- The RBI’s Monetary Policy omies. higher. out granted in February. Committee (MPC) has decid- But, the absence of any new Among currencies of developing The Turkish lira continued its ed to maintain the “neutral” headlines on the trade front and economies, while most weakened, slide amid rising diplomatic ten- stance it had adopted at its pre- disappointing US economic data India’s rupee underperformed sions with the United States and vious policy review in February, overnight stalled the rally, and fo- the most among the commonly looming uncertainty after local when it had shifted away from cus shifted to US employment data watched currencies, down 0.9%. elections. The currency has lost its earlier stance of “calibrated due later in the global day. The currency was on course to more than 6% so far this year, with tightening”. A “neutral” stance “Investors are not leaning on clock its biggest one-day loss in al- investors worried about a possible allows the central bank to move their ‘buy all’ button just yet,” said most four months, deepening loss- repeat of last year’s near 30% slide. either way on rates. Gulf Times Friday, April 5, 2019 7 BUSINESS

KUWAIT KUWAIT OMAN Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Oman Refreshment Co 1.70 0.00 - Oman Qatar Insurance Co 0.11 0.00 - Al-Mazaya Holding Co 60.40 -0.49 3,543,399 Ekttitab Holding Co Sak 18.00 5.26 202,710 Oman Packaging 0.27 0.00 - Al-Madar Finance & Invt Co 170.00 0.59 567,510 Real Estate Trade Centers Co 30.00 0.00 580 Oman Oil Marketing Company 1.07 0.00 - Gulf Petroleum Investment 26.50 -0.38 255,785 Acico Industries Co Kscc 160.00 -3.03 250,800 Oman National Engineering An 0.16 0.00 - Mabanee Co Sakc 630.00 3.28 2,240,017 Kipco Asset Management Co 70.10 -5.27 5,010 Oman Investment & Finance 0.08 2.47 457,507 Inovest Co Bsc 84.50 0.00 125,249 National Petroleum Services 1,010.00 0.00 15 Oman Intl Marketing 0.52 0.00 - Al-Deera Holding Co 16.00 4.58 92,371 Alimtiaz Investment Group 121.00 -0.82 728,981 Oman Flour Mills 0.52 0.00 - Mena Real Estate Co 38.80 -0.26 854,862 Ras Al Khaimah White Cement 74.40 5.68 100 Oman Fisheries Co 0.07 1.45 681,189 Amar Finance & Leasing Co 34.20 0.00 169,802 Kuwait Reinsurance Co Ksc 140.00 0.00 19,050 Oman Europe Foods Industries 1.00 0.00 - United Projects For Aviation 440.00 0.00 2,140 Kuwait & Gulf Link Transport 85.00 1.80 114,799 Oman Education & Training In 0.23 0.00 - QATAR National Consumer Holding Co 30.00 0.00 19,995 Humansoft Holding Co Ksc 3,179.00 -0.13 70,646 Oman Chromite 3.64 0.00 100 Amwal International Investme 59.90 0.00 400 Automated Systems Co Kscc 71.00 -7.19 20,026 Oman Chlorine 0.40 0.00 - Equipment Holding Co K.S.C.C 24.80 -0.40 154,795 Company Name Lt Price % Chg Volume Metal & Recycling Co 15.20 -68.27 19,441 Oman Ceramic Company 0.42 0.00 - Arkan Al Kuwait Real Estate 75.10 -0.66 59,549 Gulf Franchising Holding Co 99.00 0.00 71 Oman Cement Co 0.26 0.78 40,632 Zad Holding Co 145.02 -0.33 12,523 Gfh Financial Group Bsc 77.50 4.73 523,801 Al-Enma’a Real Estate Co 39.50 1.28 1,467,380 Oman Cables Industry 0.93 0.00 - Widam Food Co 62.90 -0.16 11,730 Energy House Holding Co Kscp 40.60 0.25 362,537 National Mobile Telecommuni 694.00 -0.14 28,697 Oman & Emirates Inv(Om)50% 0.08 2.50 65,000 Vodafone Qatar 7.66 0.00 878,669 Kuwait Co For Process Plant 239.00 0.00 1,419 Unicap Investment And Financ 65.00 -1.66 114,900 Natl Aluminium Products 0.34 0.00 - United Development Co 14.24 0.21 834,496 Al Maidan Dental Clinic Co K 1,240.00 0.00 2,500 Al Salam Group Holding Co 31.60 0.00 61,520 National Real Estate Develop 5.00 0.00 - Salam International Investme 4.37 0.00 32,993 National Shooting Company 14.00 0.00 30,500 Al Aman Investment Company 54.20 -2.34 1,597,999 National Pharmaceutical 0.00 0.00 - Qatar & Oman Investment Co 5.57 0.00 9,564 Al-Ahleia Insurance Co Sakp 449.00 -0.22 30 Mashaer Holding Co Ksc 75.90 -2.69 499,330 National Mineral Water 0.09 0.00 - Qatar Navigation 66.15 -1.27 13,056 Wethaq Takaful Insurance Co 36.90 0.00 244,567 Manazel Holding 24.50 0.00 117,441 National Life & General Insu 0.29 0.00 - Qatar National Cement Co 73.99 1.36 22,406 Salbookh Trading Co Kscp 35.00 0.00 121,940 Tijara And Real Estate Inves 49.90 0.00 38,525 National Gas Co 0.21 0.00 550 Qatar National Bank 177.00 0.83 89,363 Aqar Real Estate Investments 60.00 0.00 600 Jazeera Airways Co Ksc 800.00 0.25 254,650 National Finance Co 0.14 0.00 - Qatar Islamic Insurance 58.87 -0.81 3,043 Hayat Communications 30.10 -54.87 79 Commercial Real Estate Co 94.00 -0.53 375,651 National Detergent Co Saog 0.70 0.00 - Qatar Industrial Manufactur 39.00 0.00 5,117 Soor Fuel Marketing Co Ksc 119.00 -0.83 109,234 National International Co 65.90 0.00 77,200 National Biscuit Industries 3.92 0.00 - Qatar International Islamic 71.40 2.00 320,608 Tamkeen Holding Co 10.30 0.00 3,000 Taameer Real Estate Invest C 34.00 0.00 1,726,870 National Bank Of Oman Saog 0.18 0.00 125,968 Qatari Investors Group 24.61 0.45 34,139 Burgan Co For Well Drilling 100.00 0.00 40,435 Gulf Cement Co 62.80 4.67 100 Muscat Thread Mills Co 0.08 0.00 - Qatar Islamic Bank 155.41 -2.26 28,462 Kuwait Resorts Co Kscc 56.90 -0.52 773,567 Heavy Engineering And Ship B 390.00 2.63 1,315,022 Muscat Insurance Co Saog 0.76 0.00 - Qatar Gas Transport(Nakilat) 22.05 4.50 1,383,647 Oula Fuel Marketing Co 117.00 -2.50 274,100 National Real Estate Co 90.90 1.56 2,200,424 Muscat Gases Company Saog 0.15 0.00 - Qatar General Insurance & Re 43.00 0.00 - Palms Agro Production Co 50.00 0.00 116,056 Al Safat Energy Holding Comp 27.90 0.72 10 Muscat Finance 0.08 0.00 1,800 Qatar German Co For Medical 5.71 -3.06 5,745 Mubarrad Holding Co Ksc 73.20 -0.41 87,814 Kuwait National Cinema Co 900.00 0.00 19,755 Muscat City Desalination Co 0.12 0.00 14,157 Qatar Fuel Qsc 201.50 1.72 158,227 Shuaiba Industrial Co 165.00 0.00 28,352 Danah Alsafat Foodstuff Co 34.30 -1.15 719,375 Majan Glass Company 0.18 0.00 - Qatar First Bank 4.32 0.47 1,011,813 Aan Digital Services Co 14.60 -2.67 583,029 Independent Petroleum Group 396.00 0.00 17,600 Majan College 0.18 0.00 - Qatar Electricity & Water Co 171.06 0.51 21,946 First Takaful Insurance Co 40.20 -7.59 400 Kuwait Real Estate Co Ksc 63.00 3.28 8,602,202 Hsbc Bank Oman 0.12 -6.45 90,320 Qatar Exchange Index Etf 105.00 0.29 2,500 Kuwaiti Syrian Holding Co 67.00 4.69 2,521,060 Salhia Real Estate Co Ksc 330.00 0.00 15,700 Hotels Management Co Interna 1.25 0.00 - Qatar Cinema & Film Distrib 19.83 -9.86 1,500 National Cleaning Company 64.00 2.40 55,702 Gulf Cable & Electrical Ind 391.00 -1.01 193,554 Gulf Stone 0.12 0.00 - Al Rayan Qatar Etf 25.45 0.00 - United Real Estate Company 60.00 -1.48 51,377 Kuwait Finance House 0.00 0.00 - Gulf Mushroom Company 0.31 0.00 - Qatar Insurance Co 39.88 2.78 142,719 Agility 911.00 1.33 1,630,453 Gulf North Africa Holding Co 51.50 2.39 427,655 Gulf Investments Services 0.06 0.00 158,166 Ooredoo Qpsc 64.70 0.23 52,982 Kuwait & Middle East Fin Inv 47.00 0.64 126,998 Hilal Cement Co 132.00 0.00 9 Gulf Invest. Serv. Pref-Shar 0.11 0.00 - National Leasing 8.18 0.86 16,823 Fujairah Cement Industries 55.10 -1.43 25,405 Osoul Investment Kscc 57.00 0.00 6,739 Gulf International Chemicals 0.14 0.00 - Mazaya Qatar Real Estate Dev 8.22 0.37 267,217 Livestock Transport & Tradng 192.00 0.00 6,738 Gulf Insurance Group Ksc 665.00 0.00 15,000 Gulf Hotels (Oman) Co Ltd 9.50 0.00 - Mesaieed Petrochemical Holdi 22.10 0.91 377,577 International Resorts Co 20.30 0.00 10 Umm Al Qaiwain General Inves 70.00 3.86 15,000 Global Fin Investment 0.08 0.00 - Al Meera Consumer Goods Co 148.50 0.00 23,412 National Industries Grp Hold 205.00 0.49 12,594,567 Aayan Leasing & Investment 50.90 1.60 3,871,758 Galfar Engineering&Contract 0.09 0.00 802,900 Medicare Group 63.01 -0.96 12,541 Warba Insurance Co 64.90 0.00 6,971 Alrai Media Group Co Ksc 43.50 -3.33 4,500 Galfar Engineering -Prefer 0.39 0.00 - Mannai Corporation Qsc 46.74 -1.58 2,342 First Dubai Real Estate Deve 32.80 -1.80 162,295 National Investments Co 99.30 0.10 942,217 Financial Services Co. 0.18 0.00 - Masraf Al Rayan 35.90 -0.19 266,323 Al Arabi Group Holding Co 85.80 7.38 81,990 Commercial Facilities Co 182.00 0.00 75,000 Financial Corp/The 0.10 0.00 - Al Khalij Commercial Bank 11.52 -1.54 11,860 Mobile Telecommunications Co 470.00 0.00 4,838,304 Yiaco Medical Co. K.S.C.C 66.50 0.00 4,000 Dhofar Tourism 0.49 0.00 - Industries Qatar 123.31 0.25 60,967 Eff ect Real Estate Co 16.10 6.62 100,000 Munshaat Real Estate Project 88.00 -7.27 97,923 Dhofar Poultry 0.18 0.00 - Islamic Holding Group 25.15 5.45 281,182 Tamdeen Real Estate Co Ksc 290.00 -1.69 50,000 Noor Financial Investment Co 91.20 3.64 3,176,542 Dhofar Intl Development 0.30 0.00 - Investment Holding Group 5.25 0.00 175,883 Al Mudon Intl Real Estate Co 24.40 0.00 96,100 Al Tamdeen Investment Co 304.00 0.00 60,405 Dhofar Insurance 0.17 0.00 - Gulf Warehousing Company 45.50 -1.73 112,068 Kuwait Cement Co Ksc 315.00 -1.56 5,000 Credit Rating & Collection 18.00 0.00 10 Dhofar Generating Co Saoc 0.19 0.00 - Gulf International Services 15.57 -2.08 313,456 Sharjah Cement & Indus Devel 80.00 0.00 85,001 Ifa Hotels & Resorts Co. K.S 60.00 0.00 2,510 Dhofar Fisheries & Food Indu 1.28 0.00 - Ezdan Holding Group 9.68 0.62 1,069,867 Kuwait Portland Cement Co 1,345.00 -0.30 2,050 Sokouk Holding Co Sak 36.00 -0.55 795,471 Dhofar Cattlefeed 0.07 0.00 - Doha Insurance Co 11.86 2.60 1,690 Educational Holding Group 315.00 0.00 204,268 Warba Bank Kscp 255.00 0.00 16,775,272 Dhofar Beverages Co 0.26 0.00 - Doha Bank Qpsc 21.59 1.08 382,827 Asiya Capital Investments Co 35.90 -0.28 315,551 Viva Kuwait Telecom Co 898.00 2.05 32,894 Construction Materials Ind 0.03 0.00 2,525 Dlala Holding 10.35 1.57 25,055 Kuwait Investment Co 139.00 2.96 2,606,678 Mezzan Holding Co Kscc 474.00 0.00 60,817 Computer Stationery Inds 0.26 0.00 - Commercial Bank Pqsc 46.10 -1.87 38,129 Burgan Bank 397.00 0.51 13,870,183 Bankmuscat Saog 0.40 0.00 82,623 Barwa Real Estate Co 35.60 -0.17 299,109 Kuwait Projects Co Holdings 232.00 -0.43 1,123,427 Sohar International Bank 0.11 0.00 119,458 Al Khaleej Takaful Group 13.80 2.22 70,085 Al Madina For Finance And In 21.90 0.00 111,000 Bank Nizwa 0.09 0.00 274,251 Aamal Co 9.80 -0.51 259,548 Kuwait Insurance Co 424.00 0.00 400,000 OMAN Bank Dhofar Saog-Rts 0.00 0.00 - Al Ahli Bank 28.31 0.00 - Al Masaken Intl Real Estate 66.00 0.00 25 Bank Dhofar Saog 0.14 0.00 - Intl Financial Advisors 23.40 -1.68 3,151,378 Company Name Lt Price % Chg Volume Arabia Falcon Insurance Co 0.11 0.00 - First Investment Co Kscc 34.90 -0.57 1,786,710 Voltamp Energy Saog 0.19 0.00 4,961 Aloula Co 0.53 0.00 - Al Mal Investment Company 16.80 -4.55 1,216,117 Vision Insurance Saoc 0.13 0.00 - Al-Omaniya Financial Service 0.15 0.00 - Bayan Investment Co Kscc 42.20 -5.17 72,949 United Power/Energy Co- Pref 1.00 0.00 - Al-Hassan Engineering Co 0.02 0.00 - Egypt Kuwait Holding Co Sae 475.00 0.00 3,000 KUWAIT United Power Co Saog 2.97 0.00 - Al-Fajar Al-Alamia Co 0.75 0.00 - Coast Investment Development 34.80 0.87 147,010 United Finance Co 0.08 0.00 - Al-Anwar Ceramic Tiles Co 0.08 5.06 1,667,828 Company Name Lt Price % Chg Volume Privatization Holding Compan 58.30 0.52 1,542,018 Ubar Hotels & Resorts 0.13 0.00 - Al Suwadi Power 0.09 -1.14 15,186 Injazzat Real State Company 84.50 0.00 102,865 Takaful Oman 0.14 0.00 761 Al Sharqiya Invest Holding 0.08 3.90 385,986 Sultan Center Food Products 51.10 -3.58 1,154,800 Kuwait Cable Vision Sak 30.00 0.00 50,000 Taageer Finance 0.09 1.15 10,779 Al Maha Petroleum Products M 0.82 0.00 - Kuwait Foundry Co Sak 270.00 5.88 600,057 Sanam Real Estate Co Kscc 38.00 0.00 119,068 Sweets Of Oman 0.55 0.00 - Al Maha Ceramics Co Saoc 0.20 0.00 - Kuwait Financial Centre Sak 90.60 -4.63 11,082 Ithmaar Holding Bsc 22.30 0.00 370,104 Sohar Power Co 0.11 0.00 50 Al Madina Takaful Co Saoc 0.09 -1.09 58,747 Ajial Real Estate Entmt 138.00 -0.72 1,950 Aviation Lease And Finance C 282.00 0.36 184,080 Smn Power Holding Saog 0.19 0.00 - Al Madina Investment Co 0.03 3.70 102,321 Kuwait Finance & Investment 45.00 -1.96 547,568 Arzan Financial Group For Fi 32.40 7.28 1,808,647 Shell Oman Marketing - Pref 1.05 0.00 - Al Kamil Power Co 0.38 0.00 - National Industries Co Ksc 185.00 -5.61 1,295 Ajwan Gulf Real Estate Co 14.10 0.00 796,145 Shell Oman Marketing 1.06 0.00 - Al Jazerah Services -Pfd 0.55 0.00 - Kuwait Real Estate Holding C 26.50 0.00 4,000 Kuwait Business Town Real Es 41.70 -2.80 722,454 Sharqiyah Desalination Co Sa 0.31 0.00 - Al Jazeera Steel Products Co 0.27 0.00 - Securities House/The 51.40 0.00 1,697,096 Future Kid Entertainment And 108.00 0.00 1,000 Sembcorp Salalah Power & Wat 0.12 0.00 - Al Jazeera Services 0.12 0.88 284,500 Boubyan Petrochemicals Co 970.00 0.94 1,719,656 Specialities Group Holding C 70.00 2.79 20,951 Salalah Port Services 0.60 0.00 - Al Izz Islamic Bank 0.09 -1.16 73,800 Al Ahli Bank Of Kuwait 340.00 -0.58 57,510 Abyaar Real Eastate Developm 14.90 0.68 1,778,495 Salalah Mills Co 0.64 0.00 - Al Buraimi Hotel 0.88 0.00 - Ahli United Bank (Almutahed) 353.00 0.86 1,669,041 Kgl Logistics Company Kscc 42.10 -0.24 3,649,039 Salalah Beach Resort Saog 1.38 0.00 - Al Batinah Power 0.09 -1.14 14,437 National Bank Of Kuwait 909.00 -0.11 1,184,747 Combined Group Contracting 277.00 -2.46 159,471 Sahara Hospitality 3.09 0.00 - Al Batinah Hotels 1.13 0.00 - Commercial Bank Of Kuwait 598.00 0.00 401 Jiyad Holding Co Ksc 66.90 0.75 217,016 Renaissance Services Saog 0.36 0.00 5,000 Al Batinah Dev & Inv 0.09 0.00 - Kuwait International Bank 323.00 0.00 9,752,045 Boubyan Intl Industries Hold 0.00 0.00 - Raysut Cement Co 0.33 2.45 13,156 Al Anwar Holdings Saog 0.09 0.00 434,340 Gulf Bank 323.00 0.62 6,303,981 Gulf Investment House Ksc 48.40 -0.62 475,901 Phoenix Power Co Saoc 0.09 -4.30 55,119 Al Ahlia Insurance Co Saoc 0.36 0.00 - Al-Massaleh Real Estate Co 37.00 0.00 20,050 Boubyan Bank K.S.C 596.00 2.59 691,888 Packaging Co Ltd 2.21 0.00 - Ahli Bank 0.12 0.00 218,165 Al Arabiya Real Estate Co 33.10 -2.36 1,377,736 Ahli United Bank B.S.C 255.00 2.41 26,063,900 Ooredoo 0.49 -1.98 34,902 Acwa Power Barka Saog 0.66 0.00 - Kuwait Remal Real Estate Co 45.20 -2.80 462,310 Osos Holding Group Co 109.00 0.93 264,504 Ominvest 0.33 0.00 - A’ayan Real Estate Co Sak 66.20 0.46 1,018,560 Al-Eid Food Ksc 44.20 -0.90 6,000 Oman United Insurance Co 0.25 0.00 - Investors Holding Group Co.K 10.60 -1.85 6,900,261 Qurain Petrochemical Industr 390.00 0.00 278,211 Oman Telecommunications Co 0.61 0.00 343,357 LATEST MARKET CLOSING FIGURES

US jobs report risk is keeping investors wary

Bloomberg because it suggested the Fed Washington/New York would ease to maintain overall economic strength. Now, that strength is being questioned. nvestors were on edge a year The 10-year rate, which ago for signs the US labour dipped as low as 2.34% late last Imarket was overheating. month, is currently 2.51%, mar- Now they’re primed for the op- ginally above the top of the Fed’s posite. target range for overnight cash. While today’s jobs report is Even with the move in Treasur- expected to show payrolls re- ies, stock investors have shown bounded in March following some optimism: the S&P 500 the weakest reading since 2017, Index has continued to rally this economists forecast a 180,000 week after capping its best quar- gain. That would be a modera- terly surge since 2009. tion from last year’s average as One sector seeing mixed pros- business investment slows and pects is manufacturing. The headwinds gather. Institute for Supply Manage- Bond investors are wary that ment survey of factories topped the falloff could be sharper this estimates in the month, led by a year, with markets refl ecting jump in the employment com- bets that a recession is looming ponent, but the ADP Research and the Federal Reserve will play Institute’s report showed the defence by cutting interest rates. biggest drop in such jobs since It’s a huge shift from early 2016. The government’s lat- 2018, when accelerating wage est report showed the industry gains spurred fi nancial-market in February added just 4,000 turmoil amid concern the Fed workers, the fewest since 2017. would raise rates more aggres- The unemployment rate is sively. With infl ation muted expected to remain near a fi ve- and economic growth cooling, decade low today as annual wage those concerns have faded, and growth holds at a 3.4% pace, the central bank has scrapped which would continue bolster- expectations for rate hikes this ing consumer fi nances and buoy year while it monitors how the spending in the second quarter. US weathers a global slowdown. This time around, such pay gains If payrolls miss expectations, are unlikely to spur infl ation “people are going to say we’ve concerns at the Fed, where offi - had two consecutive weak num- cials have stressed a message of bers, maybe growth is probably Traders work on the floor at the closing bell of the Dow Industrial Average at the New York Stock Exchange in New York (file). Traders and investors will likely treat a patience. losing some momentum,” said weaker-than-forecast payrolls figure as vindication for bets that a recession is closer than thought. “What the Fed has said is: Alex Li, head of US rates strat- ‘We want to see higher wages, egy at Credit Agricole SA in panies fi nd fewer workers and A private report on Wednes- uncertainties, and we haven’t for bets that a recession is closer the 10-year note’s yield premium. so if wages increase, great. We’re New York. That could reignite cooling global growth fi lters into day showed US companies in had the normal fl ow of data so far than thought. Market expecta- A weak report would also be a going to welcome an increase fears of recession and wipe out investment decisions. The ques- March added the fewest jobs in this year,” said Stephen Stanley, tions for the Fed to cut interest major blow to risk appetite, ac- in wages.’ That’s not going to this week’s increase in Treas- tion now is how quickly and how 18 months, a possible sign of chief economist at Amherst Pier- rates at least once this year have cording to Jason Celente, senior change their stance of poli- ury rates, taking the US 10-year hard this shift happens, with the weakening. pont Securities, who forecasts a grown, and in March the gap be- fi xed income portfolio manager cy, certainly not going to turn yield back toward its late-March March data setting the trend af- “The question going into this payroll gain of 210,000. “There’s tween 3-month and 10-year rates at Insight Investment. It would them to be more hawkish,” said low, Li said. ter a February that economists report more than others in the uncertainty about the economy.” inverted for the fi rst time since upend the recent “bad news is Michelle Meyer, head of US eco- The labour market is set to largely discount as an anomaly past is what the underlying pace Traders and investors will like- 2007. While such a shift is seen as good news” sentiment, whereby nomics at Bank of America Corp. take a step back this year, as the due to weather and data-collec- is: people are talking about a po- ly treat a weaker-than-forecast a harbinger of recession, subse- stocks and credit traders have “The bar has been moved higher eff ects of tax cuts fade, com- tion disruptions. tential recession, concerns and payrolls fi gure as vindication quent moves have since restored benefi ted from weaker data, for the Fed to react to wages.” Gulf Times 8 Friday, April 5, 2019 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 26,339.22 +121.09 Apple Inc 195.79 0.23 2,181,252 S&P 500 Index 2,872.23 -1.17 American Express Co 110.20 -0.33 312,235 Nasdaq Composite Index 7,874.38 -21.18 Boeing Co/The 395.67 2.84 833,678 S&P/Tsx Composite Index 16,284.09 +4.23 Caterpillar Inc 140.11 0.61 204,264 Mexico Bolsa Index 43,703.81 +364.06 Cisco Systems Inc 54.97 -1.19 1,728,140 Brazil Bovespa Stock Idx 96,023.38 +1,531.90 Chevron Corp 124.25 0.29 276,019 Ftse 100 Index 7,401.94 -16.34 Walt Disney Co/The 114.21 1.50 1,384,221 Cac 40 Index 5,463.80 -5.11 Dowdupont Inc 37.02 -0.88 1,788,645 Dax Index 11,988.01 +33.61 Goldman Sachs Group Inc 202.49 0.81 245,525 Ibex 35 Tr 9,534.10 +46.30 Home Depot Inc 200.11 0.76 274,023 Nikkei 225 21,724.95 +11.74 Intl Business Machines Corp 142.96 -0.47 194,015 Japan Topix 1,620.05 -1.72 Intel Corp 55.73 0.45 1,929,621 Hang Seng Index 29,936.32 -50.07 Johnson & Johnson 135.80 -1.00 473,131 All Ordinaries Indx 6,320.40 -48.33 Jpmorgan Chase & Co 105.28 -0.07 1,446,434 Nzx All Index 1,691.31 -7.58 Coca-Cola Co/The 46.37 0.41 826,664 Bse Sensex 30 Index 38,684.72 -192.40 Mcdonald’s Corp 189.79 0.76 214,175 Nse S&P Cnx Nifty Index 11,598.00 -45.95 3M Co 214.75 0.76 85,880 Straits Times Index 3,316.21 +4.94 Merck & Co. Inc. 81.81 -1.65 892,403 Karachi All Share Index 27,429.00 -381.40 Microsoft Corp 118.89 -0.90 2,415,225 Jakarta Composite Index 6,494.63 +18.56 Nike Inc -Cl B 84.88 0.49 358,586 Pfizer Inc 42.59 -0.58 979,716 Procter & Gamble Co/The 102.88 -0.78 512,295 Travelers Cos Inc/The 136.51 -0.07 48,668 TOKYO Unitedhealth Group Inc 247.07 0.50 220,204 United Technologies Corp 132.32 0.77 151,256 Company Name Lt Price % Chg Volume Visa Inc-Class A Shares 156.93 -0.97 444,069 Sumitomo Realty & Developmen 4,363.00 -1.09 1,737,400 Verizon Communications Inc 58.92 0.08 640,655 Sumitomo Metal Mining Co Ltd 3,601.00 1.24 2,419,000 Walgreens Boots Alliance Inc 53.87 -1.77 1,506,356 Orix Corp 1,647.00 1.23 6,471,800 Walmart Inc 97.59 0.41 448,940 Daiwa Securities Group Inc 547.70 -0.22 4,265,000 Exxon Mobil Corp 81.54 0.79 844,867 Softbank Group Corp 10,940.00 0.32 4,142,900 Mizuho Financial Group Inc 174.80 -0.06 56,623,100 Central Japan Railway Co 24,935.00 -1.64 319,100 FTSE 100 Nitori Holdings Co Ltd 13,525.00 -1.89 376,600 T&D Holdings Inc 1,183.50 -1.42 3,726,000 Company Name Lt Price % Chg Volume Toyota Motor Corp 6,774.00 0.68 3,759,800 Hoya Corp 7,664.00 -0.21 908,100 Anglo American Plc 2,137.50 -1.27 3,845,849 Sumitomo Mitsui Trust Holdin 4,087.00 -0.58 746,600 Associated British Foods Plc 2,477.00 0.94 693,784 Japan Tobacco Inc 2,711.00 -0.51 4,246,600 Admiral Group Plc 2,232.00 0.22 452,651 Osaka Gas Co Ltd 2,172.00 -1.23 852,200 Ashtead Group Plc 2,009.00 2.03 1,591,319 Sumitomo Electric Industries 1,524.00 -0.55 2,303,400 Antofagasta Plc 980.40 -1.35 2,044,219 Ono Pharmaceutical Co Ltd 2,105.50 -1.86 2,335,500 Auto Trader Group Plc 528.20 0.34 1,886,700 Ajinomoto Co Inc 1,728.00 -0.58 1,798,400 Aviva Plc 429.10 0.12 6,348,463 Mitsui Fudosan Co Ltd 2,727.50 -0.58 1,870,500 Astrazeneca Plc 6,118.00 -0.76 1,759,236 Daikin Industries Ltd 13,025.00 0.54 520,900 Bae Systems Plc 496.30 0.10 5,482,812 Toray Industries Inc 757.10 0.77 6,217,800 Barclays Plc 164.66 0.40 31,575,888 Bridgestone Corp 4,436.00 0.80 2,132,500 British American Tobacco Plc 3,127.00 0.26 3,443,343 Sony Corp 4,662.00 -1.33 9,072,200 Barratt Developments Plc 625.80 0.64 3,619,979 Astellas Pharma Inc 1,647.00 0.12 5,336,100 Bhp Group Plc 1,902.20 -0.70 3,716,422 Jxtg Holdings Inc 538.20 -0.19 14,923,100 Berkeley Group Holdings/The 3,843.00 0.44 766,128 Nippon Steel Corp 2,051.00 0.05 1,899,600 British Land Co Plc 605.60 -0.07 2,118,825 Suzuki Motor Corp 5,072.00 2.82 2,737,800 Bunzl Plc 2,526.00 -0.98 721,871 Nippon Telegraph & Telephone 4,685.00 0.19 2,028,600 Bp Plc 559.60 -0.12 17,530,958 Sompo Holdings Inc 4,144.00 -1.40 625,200 Burberry Group Plc 1,957.00 1.19 613,999 Daiwa House Industry Co Ltd 3,571.00 0.53 928,600 Bt Group Plc 227.00 0.44 21,663,882 Komatsu Ltd 2,806.00 1.96 6,851,600 Coca-Cola Hbc Ag-Di 2,555.00 -0.62 734,996 West Japan Railway Co 8,285.00 -1.17 483,100 Carnival Plc 3,941.00 0.00 414,900 Murata Manufacturing Co Ltd 5,781.00 0.78 3,046,700 Centrica Plc 112.05 -1.80 21,745,039 Kansai Electric Power Co Inc 1,571.00 -1.50 2,409,800 Brokers work on their computers at the Frankfurt Stock Exchange. The DAX 30 closed 0.3% up at 11,988.01 points yesterday. Compass Group Plc 1,806.00 -0.03 1,497,754 Denso Corp 4,622.00 2.94 2,814,000 Croda International Plc 5,040.00 -1.02 232,474 Dai-Ichi Life Holdings Inc 1,626.50 -0.34 4,736,300 Crh Plc 2,484.00 -0.16 1,145,660 Mazda Motor Corp 1,290.00 -0.27 2,366,900 Dcc Plc 6,900.00 -0.20 158,062 Mitsui & Co Ltd 1,763.50 -0.20 3,516,000 Diageo Plc 3,109.00 0.27 3,374,380 Kao Corp 8,617.00 0.02 790,900 Direct Line Insurance Group 338.80 -7.56 12,334,029 Sekisui House Ltd 1,833.50 0.33 1,525,100 Evraz Plc 638.00 -0.93 1,437,616 Oriental Land Co Ltd 12,265.00 -1.64 737,500 Experian Plc 2,090.00 -1.04 1,703,500 Stocks treading water as Secom Co Ltd 9,346.00 -0.17 513,800 Easyjet Plc 1,059.00 0.28 1,969,704 Tokio Marine Holdings Inc 5,503.00 -1.33 1,587,300 Ferguson Plc 5,200.00 -0.42 536,019 Aeon Co Ltd 2,258.00 -0.42 1,439,000 Fresnillo Plc 872.60 -1.07 559,972 Fanuc Corp 20,735.00 -0.05 1,171,500 Glencore Plc 328.70 -1.31 40,173,356 Daito Trust Construct Co Ltd 15,685.00 -0.41 212,000 Glaxosmithkline Plc 1,587.80 0.01 4,620,077 Otsuka Holdings Co Ltd 4,331.00 -0.96 1,143,400 Gvc Holdings Plc 583.00 -0.38 1,882,113 investors eye progress Resona Holdings Inc 491.20 -0.32 6,108,000 Hikma Pharmaceuticals Plc 1,780.50 -1.82 267,105 Asahi Kasei Corp 1,163.50 -0.85 2,610,100 Hargreaves Lansdown Plc 2,025.00 0.70 856,915 Kirin Holdings Co Ltd 2,602.50 -1.40 2,053,600 Halma Plc 1,751.50 0.83 709,411 Mitsubishi Ufj Financial Gro 567.60 -0.42 29,437,100 Hsbc Holdings Plc 648.60 -0.05 17,811,054 Marubeni Corp 793.50 0.28 4,363,500 Hiscox Ltd 1,575.00 -0.25 775,274 Mitsubishi Chemical Holdings 815.80 0.33 6,793,800 of US-China trade talks Intl Consolidated Airline-Di 524.60 -0.76 4,622,603 Fast Retailing Co Ltd 54,480.00 -0.26 745,400 Intercontinental Hotels Grou 4,739.50 -0.48 251,848 Ms&Ad Insurance Group Holdin 3,400.00 -0.41 682,000 3I Group Plc 1,029.00 -0.24 5,505,711 and Xi Jinping to sign off on a trade Yesterday, they gave a mixed picture Kubota Corp 1,640.00 -0.46 2,753,500 AFP Imperial Brands Plc 2,552.00 1.29 2,271,615 Seven & I Holdings Co Ltd 4,224.00 -0.31 2,404,300 deal. with London and Paris lower at the Informa Plc 770.00 0.73 3,149,036 London Inpex Corp 1,050.00 -4.02 6,478,300 White House economic adviser Lar- close, while Frankfurt was up, shrug- Intertek Group Plc 4,983.00 0.59 282,273 Sumitomo Mitsui Financial Gr 4,020.00 -0.02 3,555,100 ry Kudlow said the talks were “mak- ging off weak German industrial orders Itv Plc 133.20 0.00 6,550,636 Ana Holdings Inc 4,033.00 -0.05 883,700 Johnson Matthey Plc 3,297.00 -0.36 302,598 lobal stock markets moved ing good headway” but added: “We’re data. Mitsubishi Electric Corp 1,537.00 0.49 4,864,200 Kingfisher Plc 250.10 0.89 17,145,439 mostly sideways yesterday as not there and we hope this week to get Wall Street was higher approaching Honda Motor Co Ltd 3,164.00 0.93 3,436,200 Land Securities Group Plc 919.80 -0.26 1,506,463 optimism about China and the closer.” midday in New York, having opened Tokyo Gas Co Ltd 2,973.00 -0.65 785,000 G Legal & General Group Plc 285.70 0.95 11,118,042 Tokyo Electron Ltd 17,435.00 0.52 2,463,900 United States reaching a trade agree- The Bloomberg report follows an fl at. In Frankfurt, the DAX 30 closed Lloyds Banking Group Plc 62.62 -3.48 171,526,547 Panasonic Corp 983.70 -0.79 4,679,900 ment was counteracted by nervous in- article in the Financial Times say- 0.3% up at 11,988.01 points, while in London Stock Exchange Group 4,929.00 -0.02 510,397 Fujitsu Ltd 8,015.00 -0.22 804,800 vestors taking profi ts, dealers said. ing both sides were closing in on an Paris, the CAC 40 ended 0.1% down at Micro Focus International 1,944.00 -5.95 1,813,683 East Japan Railway Co 10,340.00 -2.04 861,400 Marks & Spencer Group Plc 287.10 0.56 3,224,567 Investors in British assets were cau- agreement. 5,463.80 points. Itochu Corp 2,002.00 -0.20 3,055,600 Mondi Plc 1,784.00 -0.47 914,577 tious as they weighed the chances of “Trade negotiations between China The EURO STOXX 50 fi nished 0.2% Fujifilm Holdings Corp 5,149.00 -0.06 822,900 Melrose Industries Plc 191.95 -0.95 14,436,867 Britain crashing out of the EU without and the US appear to be gaining steam,” up at 3,441.93 points. Yamato Holdings Co Ltd 2,847.00 -1.16 731,100 Wm Morrison Supermarkets 229.80 -0.09 4,668,295 a deal next week, with both the pound said Oanda analyst Edward Moya. In London, the government re- Chubu Electric Power Co Inc 1,675.00 -2.08 1,738,500 National Grid Plc 840.10 -0.28 8,381,648 Mitsubishi Estate Co Ltd 1,937.50 -0.41 2,425,300 and the London stock market post- “Both sides appear to be ironing the doubled its efforts yesterday to win Nmc Health Plc 2,464.00 1.99 542,896 Mitsubishi Heavy Industries 4,744.00 0.66 1,303,400 ing losses. The FTSE 100 closed 0.2% fi nal details, and if we do see a fi nal over the main opposition party in Next Plc 5,656.00 -0.49 458,861 Shiseido Co Ltd 7,896.00 1.20 1,293,200 down at 7,401.94 points. summit set up for President Trump and a last-gasp bid to avoid a chaotic Ocado Group Plc 1,370.00 0.15 1,212,791 Shionogi & Co Ltd 6,623.00 -2.26 1,119,700 Paddy Power Betfair Plc 6,302.00 0.57 86,684 High-level talks between the Xi, risk assets may accelerate higher.” exit from the European Union next Recruit Holdings Co Ltd 3,083.00 -0.42 2,376,200 Prudential Plc 1,636.50 -0.37 3,362,690 world’s top two economies resumed David Madden, a market analyst at week. Japan Airlines Co Ltd 3,850.00 -0.31 1,712,700 Persimmon Plc 2,246.00 0.22 2,280,228 on Wednesday in Washington, with CMC Markets UK, noted that Kudlow The latest round of cross-party talks Nitto Denko Corp 6,044.00 0.85 933,800 Pearson Plc 837.00 -1.20 1,877,250 reports saying they are edging to- had fl agged movement on intellectual came after lawmakers tried to safe- Kddi Corp 2,400.00 0.73 5,276,200 Reckitt Benckiser Group Plc 6,434.00 0.80 979,226 Rakuten Inc 994.00 2.37 15,862,900 wards an agreement to bring the cur- property theft and hacking, which are guard against a doomsday ending to Royal Bank Of Scotland Group 254.10 0.08 12,078,120 Kyocera Corp 6,761.00 0.81 863,000 tain down on a long-running row that key bugbears of the White House. the 46-year partnership by fast-track- Royal Dutch Shell Plc-A Shs 2,440.00 0.25 4,393,588 Nissan Motor Co Ltd 943.70 0.58 9,606,000 helped batter markets last year. “These issues have been a major ing a bill Wednesday night seeking to Royal Dutch Shell Plc-B Shs 2,458.50 0.00 3,168,181 Relx Plc 1,674.00 0.72 2,607,636 Bloomberg News said the deal they point of contention for the US, and delay Brexit. Rio Tinto Plc 4,588.50 -1.09 2,921,819 are working on would give China until the fact that they are being discussed The premier has already said she will Rightmove Plc 518.10 -1.65 3,136,281 SENSEX 2025 to meet pledges on purchases and indicates that Beijing is serious about seek a second “short” delay at an EU Rolls-Royce Holdings Plc 904.00 -0.66 3,914,000 to let US fi rms wholly own their busi- reaching a deal,” he added. summit on April 10. Rsa Insurance Group Plc 524.80 0.31 1,632,691 Company Name Lt Price % Chg Volume nesses in the country. Global stocks have enjoyed a stellar Parliament remains divided with Rentokil Initial Plc 363.10 0.83 8,224,165 Adani Ports And Special Econ 380.20 -0.47 1,909,852 It said the aim was to get everything year so far thanks to confi dence in a hardliners fearing a “soft” divorce will Sainsbury (J) Plc 239.70 -0.37 6,650,571 Asian Paints Ltd 1,519.00 1.43 1,409,222 leave Britain still linked to the bloc. Schroders Plc 2,834.00 2.87 434,142 in place for presidents Donald Trump deal being reached. Axis Bank Ltd 762.15 0.09 7,009,879 Sage Group Plc/The 704.80 -1.67 2,058,609 Bajaj Finance Ltd 3,039.45 -0.22 772,776 Segro Plc 683.40 -0.50 2,007,030 Bharti Airtel Ltd 356.80 1.94 10,966,638 Smurfit Kappa Group Plc 2,324.00 0.87 441,935 Bharti Infratel Ltd 316.65 -0.19 1,339,901 HONG KONG HONG KONG Standard Life Aberdeen Plc 280.10 1.08 6,051,210 Bajaj Auto Ltd 2,859.10 0.41 662,281 Ds Smith Plc 345.50 -2.35 3,203,693 Bajaj Finserv Ltd 7,318.55 -1.12 202,173 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Smiths Group Plc 1,475.50 -1.73 948,102 Bharat Petroleum Corp Ltd 354.30 -2.45 10,199,796 Scottish Mortgage Inv Tr Plc 520.50 -1.42 4,251,284 Ck Hutchison Holdings Ltd -0.41 Cipla Ltd 521.00 0.11 5,555,991 85.60 5,064,829 Hong Kong & China Gas 19.10 -0.83 16,449,019 Smith & Nephew Plc 1,502.00 -1.60 1,385,127 Hang Lung Properties Ltd -0.81 Coal India Ltd 234.80 0.30 3,948,463 19.58 6,634,211 Bank Of Communications Co-H 6.57 2.02 36,812,982 Spirax-Sarco Engineering Plc 7,525.00 0.40 94,134 Ck Infrastructure Holdings L -0.39 Dr. Reddy’s Laboratories 2,771.35 0.22 438,496 64.15 1,573,029 China Petroleum & Chemical-H 6.32 -0.47 132,751,279 Sse Plc 1,168.50 0.21 5,805,983 Hengan Intl Group Co Ltd 1.08 Eicher Motors Ltd 20,489.55 1.42 167,558 69.90 2,177,913 Hong Kong Exchanges & Clear 280.00 -0.28 3,775,903 Standard Chartered Plc 640.00 -0.56 7,163,362 China Shenhua Energy Co-H -0.44 Gail India Ltd 346.30 -1.74 3,496,000 18.06 28,001,720 Bank Of China Ltd-H 3.75 0.00 283,936,920 St James’s Place Plc 1,043.00 -3.16 2,792,651 Cspc Pharmaceutical Group Lt 1.19 Grasim Industries Ltd 834.90 0.38 1,220,209 15.36 27,126,479 Hsbc Holdings Plc 66.50 0.15 28,689,527 Severn Trent Plc 1,974.00 0.77 831,780 Hang Seng Bank Ltd 0.86 Hcl Technologies Ltd 1,098.05 -2.01 4,222,104 198.40 1,431,011 Power Assets Holdings Ltd 54.40 -0.18 4,082,318 Tesco Plc 236.20 -0.17 9,755,480 China Resources Land Ltd -1.26 Housing Development Finance 2,042.05 1.44 4,463,212 35.40 7,775,594 Mtr Corp 48.65 -0.71 3,001,491 Tui Ag-Di 745.00 1.47 2,784,370 Ck Asset Holdings Ltd -1.66 Hdfc Bank Limited 2,283.95 -0.38 2,302,888 71.00 5,826,849 China Overseas Land & Invest 30.05 -1.15 11,838,675 Taylor Wimpey Plc 184.95 -1.12 30,373,895 Sino Biopharmaceutical -0.40 Hero Motocorp Ltd 2,637.20 2.20 2,007,440 7.45 49,533,500 Tencent Holdings Ltd 376.00 -0.53 13,704,181 Unilever Plc 4,399.50 0.34 1,486,537 Henderson Land Development 0.20 Hindalco Industries Ltd 210.45 -2.55 7,739,096 50.05 3,679,180 China Unicom Hong Kong Ltd 10.30 3.21 48,724,561 United Utilities Group Plc 822.20 0.86 2,163,614 Aia Group Ltd -1.05 Hindustan Petroleum Corp 258.75 -0.67 5,482,236 80.00 23,688,044 Link Reit 92.10 -1.02 4,215,551 Vodafone Group Plc 144.46 0.54 58,664,631 Ind & Comm Bk Of China-H 0.00 Hindustan Unilever Ltd 1,666.55 -0.25 1,212,398 5.94 205,033,926 Sino Land Co 14.92 -0.53 4,834,930 John Wood Group Plc 512.00 -2.18 1,939,722 Want Want China Holdings Ltd -1.04 Icici Bank Ltd 388.75 -0.85 14,521,564 6.64 7,444,415 China Resources Power Holdin 11.70 0.52 21,409,255 Wpp Plc 852.20 0.05 3,318,847 Sun Hung Kai Properties -0.07 Indiabulls Housing Finance L 898.15 3.25 21,062,041 141.50 3,358,765 Petrochina Co Ltd-H 5.21 0.39 72,544,840 Whitbread Plc 5,042.00 -1.25 479,622 New World Development -0.86 Indusind Bank Ltd 1,736.15 -2.11 2,164,515 13.76 16,802,528 Cnooc Ltd 14.40 -1.64 45,382,002 Geely Automobile Holdings Lt 2.44 Infosys Ltd 747.90 -0.72 7,688,525 16.76 122,079,136 China Construction Bank-H 6.96 0.58 327,086,221 Swire Pacific Ltd - Cl A 0.00 Indian Oil Corp Ltd 155.20 1.14 9,365,107 102.30 1,587,675 China Mobile Ltd 79.50 -0.69 19,005,751 Sands China Ltd 0.47 Itc Ltd 294.80 -0.46 6,965,053 42.60 10,129,395 TOKYO Wharf Real Estate Investment -0.51 Jsw Steel Ltd 287.80 -0.72 4,338,250 59.10 3,755,629 Clp Holdings Ltd -0.16 Kotak Mahindra Bank Ltd 1,322.90 -0.85 2,592,949 91.20 2,173,300 Country Garden Holdings Co -2.09 Company Name Lt Price % Chg Volume Larsen & Toubro Ltd 1,368.70 -0.68 1,980,318 12.20 60,273,310 Aac Technologies Holdings In 1.00 Mahindra & Mahindra Ltd 653.35 -0.77 3,684,739 50.40 13,941,497 GCC INDICES Hitachi Ltd 3,698.00 -1.54 4,793,200 Shenzhou International Group 0.84 Maruti Suzuki India Ltd 7,113.10 0.57 1,388,375 107.70 1,680,201 Indices Lt Price Change Takeda Pharmaceutical Co Ltd 4,506.00 -1.18 3,838,500 Ping An Insurance Group Co-H 0.33 Ntpc Ltd 135.65 0.63 12,939,086 91.30 38,349,652 Jfe Holdings Inc 1,975.00 0.03 2,209,700 China Mengniu Dairy Co 29.30 1.74 19,350,268 Oil & Natural Gas Corp Ltd 155.25 -0.13 10,752,094 Doha Securities Market 10,189.56 +27.99 Sumitomo Corp 1,586.50 -0.06 2,935,700 Sunny Optical Tech 1.37 Power Grid Corp Of India Ltd 199.35 -0.80 5,698,269 99.65 6,721,011 Canon Inc 3,255.00 0.65 2,354,100 Boc Hong Kong Holdings Ltd 35.00 0.43 11,031,520 Reliance Industries Ltd 1,353.05 -1.61 8,375,674 Kuwait Stocks Exchange 4,956.33 +1.84 Nintendo Co Ltd 32,450.00 0.03 1,379,300 China Life Insurance Co-H 0.46 State Bank Of India 321.80 0.41 27,832,294 21.90 51,344,697 Eisai Co Ltd 6,437.00 -0.72 1,538,800 Citic Ltd 12.02 -0.66 31,633,300 Sun Pharmaceutical Indus 465.60 0.78 4,151,406 Oman Stock Market 3,939.54 -21.45 Isuzu Motors Ltd 1,515.00 -0.49 2,054,600 Galaxy Entertainment Group L 0.91 Tata Steel Ltd 530.65 -0.90 5,259,917 61.30 14,839,726 Unicharm Corp 3,558.00 1.28 1,103,900 Wh Group Ltd 8.88 1.60 63,546,301 Shin-Etsu Chemical Co Ltd 10,145.00 -0.20 1,672,400 Tata Consultancy Svcs Ltd 2,014.50 -3.12 4,397,518 Smc Corp 43,510.00 0.35 380,600 Tech Mahindra Ltd 774.50 -0.41 1,751,584 Mitsubishi Corp 3,142.00 0.51 2,485,700 Titan Co Ltd 1,106.10 0.51 2,463,998 Asahi Group Holdings Ltd 4,850.00 -0.66 933,400 Tata Motors Ltd 206.15 2.38 41,268,908 Keyence Corp 71,830.00 3.31 710,300 Upl Ltd 931.50 0.78 2,377,767 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The Nidec Corp 14,970.00 0.88 962,100 Ultratech Cement Ltd 4,079.95 1.96 713,853 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Nomura Holdings Inc 419.40 -1.50 11,112,900 Vedanta Ltd 187.20 0.75 6,366,506 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Daiichi Sankyo Co Ltd 5,299.00 -1.32 3,202,700 Wipro Ltd 259.05 -0.99 6,419,198 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Subaru Corp 2,696.50 1.20 2,529,900 Yes Bank Ltd 268.05 -2.06 42,003,554 this data.” Ntt Docomo Inc 2,385.00 -0.36 4,119,100 Zee Entertainment Enterprise 417.30 3.15 18,795,965

Gulf Times 10 Friday, April 5, 2019 BUSINESS Bank of England said to quiz shadow lenders on downturn risk

Bloomberg a single fund granted a borrower £1bn from riskier lending and regulators sought concerns as misplaced. “Our business London ($1.3bn) in one of the region’s biggest to prevent a rerun of the financial crisis. model is well designed to continue to private debt transactions on record. That Shadow lenders, which aren’t subject to lend through a cyclical downturn,” said kind of muscle is prompting regulators the same regulatory scrutiny, now control Max Mitchell, head of the direct lending The Bank of England has been meeting to examine potential spillovers to the almost $770bn globally as of June, up from team at Intermediate Capital Group in with direct lenders to gauge the industry’s broader economy if troubles emerge $275bn in 2009, according to a report from London. resilience to slowing growth, according to during a slowdown. Preqin Ltd. Committed capital means investors can’t two people familiar with the matter. “Regulators are tracking this development As capital floods into the industry and pull money “overnight” like depositors of a At least two of the biggest UK private closely to make sure that they understand competition intensifies, more leverage bank, he said. credit funds met separately with members the underlying risk of direct lending and has crept into deals. Recipients of Nevertheless, the opaque nature of the of the central bank’s financial stability threat of contagion,” said Floris Hovingh, “unitranche” loans tracked by Fitch funds, alongside their high-risk loans and unit in the past month, said the people, a partner and head of alternative capital Ratings carried a median ratio of 7 times explosive growth, have prompted UK who asked not to be identified because solutions at Deloitte LLP in London. debt to Ebitda as of February, compared off icials tasked with ensuring financial the talks were private. The meetings In its November report, the BoE’s with 6.4 times a year earlier. By stability to increase their scrutiny of the were part of the BoE’s eff orts to gauge Financial Policy Committee said it “will comparison, peers in the syndicated loan industry. potential sources of stress in an economic work to enhance the monitoring of the bank market had debt of 5 times ebitda. “I am not surprised the BoE is looking at downturn, they said. potential liquidity demands and losses Standards have also become more lax. A private debt,” said Sebastien Galy, senior A representative for the Bank of England generated by non-bank leverage” and recent study by law firm Proskauer Rose macro strategist at Nordea Investment The Bank of England building in London. At least two of the biggest declined to comment on the matter. would consider further actions if “it is LLP showed that, of 68 private-credit Funds. UK private credit funds met separately with members of BoE’s Direct lenders are starting to supplant found that risks reach systemic levels.” transactions in Europe it worked on last “I too am looking for things that can go financial stability unit in the past month, sources said. The meetings traditional institutions in a slew of The number of funds off ering private year, 62% contained only a single covenant seriously wrong and one typical canary were part of the BoE’s eff orts to gauge potential sources of stress in financing deals in Britain, the European credit mushroomed over the past decade test. In 2017 the figure was 24%. in the coal mine is credit. As one says, in an economic downturn, they said. epicentre of the market. Earlier this year, as more traditional banks pulled back Within the industry, practitioners see the times of peace, prepare for war.”

France is said to leave EU at risk of trump Commerzbank is said backlash over trade

Bloomberg Brussels to enter key weekend European Union ambassadors put off giving the green light for trade talks with the US as France continues to withhold its consent, according to two off icials familiar with the deliberations. The envoys could still approve the mandate in the next several days to allow the bloc’s trade commissioner, Cecilia Malmstrom, to negoti- ate cuts in industrial tariff s with the US, the off icials said on the condi- tion of anonymity because the meeting was behind closed doors. in Deutsche Bank talks France is stalling over wording on the environment and on a previous, now-shelved, plan for a broader transatlantic commercial deal. Bloomberg The EU envoys plan to take up the matter again no later than April Frankfurt 11, said the two people. Malmstrom is rushing to begin deliberations with the US on slashing industrial tariff s in a bid to show Trump progress by the EU in ommerzbank AG is nearing a de- enacting a July 2018 political accord that he reached with her boss, cision as early as this weekend on European Commission President Jean-Claude Juncker. The Trump Cwhether to deepen merger talks administration has expressed angst at the delays from the EU and with Deutsche Bank AG or break them off , has underscored its willingness to use its leverage to speed the people briefed on the matter said. pace of negotiations. The two banks are leaning towards in- The deal between Trump and Juncker suspended the threat of tensifying talks and are close to a con- US levies on EU cars and auto parts that would be based on the sensus on the rough outlines of a poten- same national-security grounds used by the US president to apply tial deal, the people said, asking not to be controversial duties last year on foreign steel and aluminium. At identifi ed in disclosing internal discus- the same time, the pact struck almost nine months ago expressed a sions. Deutsche Bank chairman Paul Ach- desire to resolve the dispute over the American metal levies, which leitner previously promised an update by prompted the European side to retaliate with tit-for-tat duties. April 26. No decision has been reached Malmstrom signalled on March 21 that she expected to receive and the talks could still fail. the go-ahead in April from EU governments for negotiations with The banks declined to comment on the Washington. She requested the mandate in mid-January. status of the discussions. Sueddeutsche Once EU ambassadors give their backing, the mandate would be Zeitung reported earlier that a preliminary added to the agenda of a meeting of member-country ministers for decision could come over the weekend. a rubber stamp. The ministerial go-ahead could occur on April 15. Since Deutsche Bank and Commerz- An escalation of tensions with the US would come at a very bad bank, led by Christian Sewing and Martin time for Europe’s economy, which is struggling amid a global Zielke respectively, entered into formal slowdown. merger negotiations last month, they Germany’s car industry is already facing a tough environment of have been in daily contact, the people tighter emissions rules and weaker demand, and surveys show manu- said. Zielke in particular has been push- facturing in the euro area is shrinking at the fastest pace in six years. ing for a quick decision, one person said. A customer enters a branch of Commerzbank in Gelsenkirchen, Germany. Commerzbank and Deutsche Bank are leaning towards Commerzbank’s biggest shareholder is intensifying talks and are close to a consensus on the rough outlines of a potential deal, sources said. the German government, and the Finance Ministry, which oversees the stake, has costs, one person said. Some of that may cluding BNP Paribas SA and UniCredit Raising additional capital could prove encouraged a deal. be covered by existing provisions as both SpA have reached out in the past to the challenging for Deutsche Bank. Some key Yet opposition has been increasing banks have set aside money for their on- German government about Commerz- shareholders oppose the idea of a share across the political spectrum. Lawmak- going turnaround eff orts, said another bank, people familiar with the matter have sale because it would further dilute their ers from Chancellor Angela Merkel’s person. Capital may also be needed to previously said. stakes at a low valuation, people famil- Christian Democratic-led bloc to the cover asset write-downs and strengthen Shares of Commerzbank rose as much iar with the matter have said. A sale of anti-capitalist Left party and far-right buff ers, they said. Commerzbank has large as 3.9% yesterday after the Financial Deutsche Bank’s asset management unit AfD are laying into the plans. With So- holdings of Italian bonds that would have Times reported that UniCredit is prepar- DWS Group could help raise capital, but cial Democratic colleagues of Scholz also to be revalued in a takeover. ing a takeover bid should the talks with the bank is reluctant to give up a source of questioning the deal, he looks increas- The diff erence between the book value Deutsche Bank fall through. Deutsche stable revenue and profi ts. ingly isolated. and the estimated market value of the as- Bank and UniCredit fell. Allianz SE, the Munich-based insurer The people at Deutsche Bank working sets and liabilities on Commerzbank’s bal- One question in a tie-up with Deutsche that owns Pacifi c Investment Manage- on the deal estimate it could lead to sav- ance sheet at year end 2018 suggests a po- Bank is just how much of that capital can ment Co and Allianz Global Investors, is ings in excess of 40% of Commerzbank’s tential writedown of €2.4bn. That would be covered through an accounting quirk. exploring the possibility of combining cost base, one person said. It could make be mitigated by a tax eff ect, pushing the Commerzbank’s shares are trading well DWS with its asset management arm, 30,000 jobs redundant, other people have eff ective writedown to about €1.6bn, one below the value of the bank’s tangible eq- Bloomberg reported last month. Malmstrom is rushing to begin deliberations with the US on said previously. That’s more than a fi fth of person said. Most of that would be on the uity, and regulators could decide to recog- UBS Group AG has also considered slashing industrial tariff s in a bid to show Trump progress the two banks’ combined workforce. bank’s portfolio of Italian bonds, accord- nise some of that diff erence — currently seeking to buy DWS as the Swiss bank ex- by the EU in enacting a July 2018 political accord that he A deal could also create an estimated ing to this person. about 15bn euros — as fresh capital in a plores strategic options for its asset man- reached with her boss, European Commission President capital need of close to €10bn, includ- A breakdown of the talks could reignite takeover. That would mitigate the need for agement arm, people familiar with the Jean-Claude Juncker. ing some €4bn to €5bn for restructuring interest among foreign rivals. Banks in- additional measures. matter have said. Swiss regulator rings alarm bell on overheating real estate

Bloomberg notably insurance companies The Swiss Bankers Associa- Geneva and pension funds, have piled tion has also said it will consid- into property. That has boost- er amending its self-regulation ed construction activity, and for the mortgage market. arnings about risks the home vacancy rate has hit In previous years, real es- in Switzerland’s a two-decade high. The rate tate market imbalances have Wproperty market is expected to increase further been addressed by industry- reached fever pitch, with the this year, while rents nationally led changes to rules on mort- banking regulator calling for are forecast to decline. gage lending. There’s also a broad measures to curb over- “We intervene when indi- countercyclical capital buff er, heating in buy-to-let real es- vidual institutions take on ex- which ensures that banks’ cap- tate. cessive risks, but we believe this ital base take into account the Recent stress tests showed is not enough to counteract the macro-fi nancial environment the segment should be the fo- generalised overheating trends in which they operate, and cus of supervision, Finma said, we are currently seeing,” Finma which could still be increased and called the mortgage mar- chief executive offi cer Mark to boost banks’ resilience. ket “too big to fail.” Branson said yesterday. Yet SNB Governing Board The statement follows He said the problem could Member Andrea Maechler has months of admonitions from only be tackled via changes to said it wouldn’t be the most the Swiss National Bank, which regulation or self-regulation. appropriate tool for residential has raised red fl ags about loan- Finma also ordered 11 banks to investment property risks. to-value and aff ordability risks set aside 4bn francs ($4bn) in “Taking action against in- for residential investment capital against those risks. dividual institutions in the properties. The International Already, the Swiss Finance current environment is a bit Monetary Fund added to the Ministry has said it will pro- like a game of ‘whack a mole’,” warnings this week, saying pose increasing risk weights Branson said. “Like a labour of there was a risk to fi nancial for income-generating real Sisyphus, no sooner has one stability. estate. The specifi cs of the mole been knocked on the head With interest rates at a record change have not yet been an- than a new one pops up some- Residential apartment blocks and traditional Swiss residential properties stand in Zurich. Recent stress tests showed Switzerland’s property market low, yield-hungry investors, nounced. where else.” should be the focus of supervision, the banking regulator Finma said, and called the mortgage market “too big to fail.” Gulf Times Friday, April 5, 2019 11 BUSINESS

Tesla’s Elon Musk to square off with SEC in court at contempt hearing

Reuters recently off ering a version starting at The SEC called the earlier tweet “obviously trading yesterday. It is rare for the SEC to viewed in hindsight as the cause of the New York $35,000. diff erent” from Tesla’s Jan. seek a contempt finding, though some le- demise of Tesla,” he said. The SEC on February 25 accused Musk of 30 outlook, when it targeted annualised gal experts said the regulator has a strong “She could give him a good tongue- violating his October 2018 settlement by Model 3 production exceeding 500,000 as case over Musk’s earlier tweet. lashing, and tell him this is it, and next time Lawyers for Tesla Inc chief executive Elon posting material information about Tesla soon as the fourth quarter, and projected “It seems pretty clear that this particular she’s not going to be so nice,” Cox added. Musk will argue today that he did not on Twitter six days earlier, without first 360,000 to 400,000 vehicle deliveries tweet was not run through the scrub- The settlement resolved an SEC lawsuit violate a fraud settlement with the US seeking approval from company lawyers. this year. bing system that Tesla was supposed to that accused Musk of violating securities Securities and Exchange Commission and Musk has countered that the information Musk’s lawyers countered that the earlier have in place,” said Stephen Diamond, laws by tweeting last August 7 that he had should not be held in contempt, the latest was not material, and did not need to be tweet merely restated a forecast he had who teaches securities law at Santa Clara “funding secured” to take Tesla private twist in a high-profile battle between the vetted. given on January 30, when he said University School of Law. at $420 per share. That tweet sent Tesla’s billionaire and the government. It is unclear whether Musk will appear at Model 3 production could total 350,000 to A contempt finding by US District Judge share price up as much as 13.3%. Musk’s Musk’s fight with the SEC, to play out in the hearing. 500,000 vehicles. Alison Nathan could subject Musk to new privatisation plan was at best in an early a Manhattan federal court hearing, has The battle concerns a tweet that Musk They have also said the SEC had conceded sanctions such as a higher fine or removal stage, however, and financing was not in raised investor worries that it could lead sent to his more than 24mn Twitter fol- during settlement talks that Musk did not from Tesla’s board or as chief executive, place. to restrictions on his activities or even lowers: “Tesla made 0 cars in 2011, but need pre-approval for all tweets about his legal experts said. In settling, Musk agreed to step down as Tes- his removal from Tesla, while distracting will make around 500k in 2019,” meaning Palo Alto, California-based company. James Cox, a Duke University law profes- la’s chairman, and the company said it would him at a pivotal point in the electric car 500,000 vehicles. On Wednesday night, Tesla repeated its sor, said Nathan was unlikely to impose a adopt procedures to oversee all of Musk’s maker’s expansion. Four hours later, Musk corrected himself, January 30 vehicle delivery forecast, but severe penalty such as giving up control communications, regardless of format, and Tesla, which built its reputation on luxury saying annualised production would be said first-quarter deliveries had fallen over Tesla. pre-approve written communications that cars, has faced several production chal- “probably around” 500,000 by year end, 31% from the prior three months to about “We have to understand that Tesla is at could be material to the company. lenges with its Model 3 sedan, which it is with full-year deliveries totalling about 63,000. a very important point in its history, and Tesla and Musk also agreed to each pay counting on to reach the mass market, 400,000. Its share price fell more than 10% in early I don’t think any judge would want to be $20mn civil fines. Musk: Tweet concerns.

ECB debated risk of low Still ‘looking into’ data access, rates for ‘too long’

Reuters Zuckerberg tells ABC news Frankfurt European Central Bank policy- Bloomberg makers debated the risk that New York ultra-low interest rates pose to banks, the accounts of the March meeting showed yes- acebook Inc’s chief executive of- terday, likely fuelling a debate fi cer Mark Zuckerberg said the about measures to aid lenders. Fcompany is “still looking into” a Fearing a sharp slowdown in report that millions of users’ data was economic growth, the ECB publicly accessible on Amazon.com reversed course last month, Inc’s cloud servers. delaying a planned interest “In general we work with develop- rate hike until 2020 and giving ers to make sure that they’re respect- banks fresh access to ultra ing people’s information and using it cheap central bank funding. in only ways that they want,” Zucker- The delay indicates that rates berg said in an interview with George will stay negative for even Stephanopoulos on ABC News. longer and banks will continue Researchers at cybersecurity fi rm to pay hefty fees to the ECB UpGuard said on Wednesday they for parking their excess cash, found troves of user information hiding a concern for policymakers in plain sight, inadvertently posted on as lenders transmit monetary Amazon’s public servers. The records policy to the real economy were accessible and downloadable for “Concerns were voiced that over anyone who could fi nd them online. time, the eff ects of persistently In one instance, Mexico City-based low rates could depress banks’ digital platform Cultura Colectiva, interest margins and profitability, openly stored 540mn records on Fa- with negative eff ects on banks cebook users, including identifi cation intermediation and financial numbers, comments, reactions and ac- stability in the longer run,” the count names. That database was closed ECB said in the accounts of the on Wednesday after Bloomberg alerted meeting yesterday. Facebook to the problem and Facebook Even as the bank is still ironing contacted Amazon. out the details of its new bank Just over a year since the Cambridge loan scheme, ECB President Analytica scandal exposed how un- CEO and founder of Facebook Mark Zuckerberg looks at his phone after a conference in Sun Valley. “We work with developers to make sure that they’re respecting Mario Draghi had already secure and widely disseminated Fa- people’s information and using it in only ways that they want,” Zuckerberg said in an interview with George Stephanopoulos on ABC News. raised the prospect of an even cebook users’ information is online, longer delay in the rate lift-off and Zuckerberg told Stephanopoulos that sions should be left to a private com- “We’ve learned a lot since 2016 CEO called last weekend for new global said in the interview. “There are a lot of opened a debate on whether mit- he was proud of the progress Facebook pany to make, especially around things where obviously we were behind where regulations to govern the internet, rec- decisions that I just think people don’t igating measures were needed to has made to stem privacy breaches and like speech and expression for so many we needed to be on defences,” Zucker- ommend overarching rules on hateful want a single private company to be shield banks from the side eff ects combat the spread of misinformation. people around the world.” berg said. “But the reality is that there’s and violent content, election integrity, making.” of negative interest rates. “I think in a lot of ways over the last After Facebook was found to have not a single thing that we can do and privacy and data portability. The CEO said current laws regard- Sources close to the discus- few years, we have changed signifi cant- been an outlet for Russian operatives to say ’alright we put this in place so now “I think regulation would be help- ing political advertising should not put sion said that ECB staff were ly how we run the company,” he said. spread misinformation during the US they can’t even try to interfere.’ They’re ful, where it would be useful to spell the burden on private companies to set studying a tiered deposit rate as “I’m proud of the progress we’ve made. presidential election in 2016, Zucker- always going to try.” out clearly what the responsibilities the rules. “It’s not clear that we want a way to give banks relief from There’s a lot more to do in each of these berg said he’s more confi dent about the Zuckerberg also talked about regu- that we want companies and people private companies making decisions the punitive charge on at least areas. There’s a question of what deci- next election in 2020. lation of technology companies. The and governments to have,” Zuckerberg about free speech,” he said. part of their excess reserves. Still, policymakers argued that bank lending conditions remained supportive, suggesting Citi to buy mortgages from UK bad bank for $6.4bn that any action to help lenders was not imminent. Policymakers will next meet Bloomberg within the next few weeks, it said balance sheet,” said Ian Hares, chief on April 10 and while they are London in a statement. Pacific Investment executive off icer of UKAR. Citigroup expected to debate the need to Management Co is financing the in London declined to comment. help banks, no decision is likely. transaction. UKAR has now cut its balance sheet A tiered deposit rates would Citigroup Inc is paying £4.9bn The British government has by 93% since its formation, to £8bn, suggest that interest rates could ($6.4bn) for residential mortgages previously sold multi-billion- as a result of the sale. stay low for even longer. and unsecured loans from the British pound portfolios to firms including UKAR was formed from collapsed The accounts published yester- government’s bad bank, in a major Blackstone Group LP and Cerberus lenders Bradford & Bingley Plc day indicated that policymakers step to off loading the assets it took Capital Management LP. A group led and Northern Rock Plc after they were already expecting policy on at the peak of the financial crisis. by Barclays Plc agreed to acquire required a bailout during the first normalisation to be drawn out UK Asset Resolution Ltd, the a £5.3bn mortgage portfolio from British bank run in more than a and growth projections were government agency overseeing UKAR last year. century. The government agency UK Asset Resolution Ltd, the government agency overseeing nationalised lenders, still at risk of being “optimistic”, nationalised lenders, expects to “This is a significant step in the plans to divest all of its remaining expects to complete the sale of two portfolios to Citigroup within the next few weeks, even after being cut several complete the sale of two portfolios reduction and simplification of our assets by 2021, it said last summer. it said in a statement. times already.

Fed risks fomenting ﬁ nancial bubbles in zeal to lift inﬂ ation

Bloomberg That would put policy makers in a biggest economic contraction since the stance could spur a stock-market bub- and regulatory tools available to ad- have to keep interest rates lower for Washington pickle. In unveiling the Fed’s U-turn Great Depression. ble such as occurred in the late 1990s dress financial stability risks, as Vice longer — a strategy that would likely last month, Powell highlighted the cen- The quandary for the Fed is that easy dot-com boom. Chairman for Supervision Randal fi nd favor in fi nancial markets. tral bank’s determination to promote monetary policy seems more eff ective “We’re in a very diff erent world to- Quarles acknowledged in a speech Former Fed Governor Jeremy Stein he Federal Reserve risks stoking price pressures by declaring that low in spurring asset values than it does in day,” he told reporters on March 20, last week. voiced doubts that infl ation expecta- the same sort of asset bubbles infl ation was “one of the major chal- boosting prices of goods and services. arguing that the Fed is much more at- The trade-off between fi nancial stations are as important as some current Tthat chairman Jerome Powell has lenges of our time.” And he left open The S&P 500 Index rose by an average tuned to such risks than it was back bility and infl ation might become more policy makers believe. linked to the last two recessions with its the possibility that the Fed’s next rate 8.5% from 2014 through 2018, while the then. “We don’t see fi nancial stability acute if the Fed changes its framework “I don’t think the guy in the taco new-found eagerness to fan infl ation. move might be a cut after four increases personal consumption expenditures vulnerabilities as high,” he added. for achieving its price target when it truck downstairs is going to set a higher The Fed’s surprise pivot away from last year. price index increased 1.3%, well below Powell also subscribes to the tradi- completes a wide-ranging monetary price for tacos because the Fed says it’s any interest rate increases this year But a drive to boost infl ation through the Fed’s 2 infl ation target. In January, tional Fed view that fi nancial risks are strategy review next year. aiming for 50 basis points higher infl a- has boosted prices of stocks, high yield low interest rates could end up threat- the most recent month for which data is best addressed via enhanced supervi- Plan B tion,” said Stein, who is now a Harvard bonds and other risky assets in spite of ening fi nancial stability by encouraging available, it stood at just 1.4%. sion and regulation rather than through While Powell has ruled out increas- University professor. nagging investor concerns about slow- supercharged risk-taking, according to El-Erian, who is also a Bloomberg changes in interest rates. ing the 2% goal, he’s raised the pos- He also saw risks in the Fed adopting ing global economic growth. Financial Allianz SE chief economic adviser Mo- Opinion columnist, said that infl ation “Ultimately I am in a camp of think- sibility that the central bank could a strategy in which it explicitly aims for conditions, at least as measured by the hamed El-Erian. is being held down by structural forces ing that monetary policy is not at all the adopt a “make-up” strategy — letting infl ation above target for a while. Chicago Fed, are at their easiest since And it’s just such “destabilising ex- outside the Fed’s control. They include ideal tool to address these questions,” infl ation run above target during good “Say we’re at 4% unemployment and 1994. And they could well get looser. cesses” that Powell has pinpointed as globalisation, the diminished bargain- he told the Economic Club of New York times like now, to off set the periods of infl ation is stubbornly at 1.7%. That’s a “If by late spring it feels like growth leading to the last two economic down- ing power of workers and the disin- last November, though he did allow slower price rises. The aim would be pretty good place to be,” he said. is picking up and the Fed is on hold, the turns. First it was the dot-com stock fl ationary impulses coming from such that there seemed to be a connection to convince consumers and companies “Do you want to say I’m going to markets are going to say Goldilocks is market boom of the late 1990s that companies as online retailer Amazon. between low interest rates and credit that the Fed is committed to reaching commit now to keeping rates really, re- back and it’s risk on,” said former Fed crash landed and led to the 2001 reces- com Inc. growth and asset prices. its objective after years of mostly un- ally low to fi x this failure of 1.7% infl a- offi cial Nathan Sheets, who is now chief sion. Then it was the housing boom and Powell has brushed off concerns that The problem for the Fed is that the dershooting. tion, even in an environment when it economist for PGIM Fixed Income. bust of the 2000s that preceded the the central bank’s shift to an easier US has a limited set of supervisory But to achieve that the Fed might might risk creating a bubble?” Friday, April 5, 2019 GULF TIMES BUSINESS Qatar pavilion shines at Hannover Fair 2019 Qatar’s pavilion at the Hannover Fair 2019 has seen a large turnout as businessmen, offi cials, representatives of the industrial and trade sectors and media. The 1000-square metre pavilion that the Ministry of Commerce and Industry hosted for the second consecutive year brought together representatives of the Qatar Chamber, Qatar Financial Centre, Manateq, Qatar Free Zones Authority, the Supreme Committee for Delivery & Legacy, Qatar Railways Company (Qatar Rail), Qatar Development Bank and Qatar Science and Technology Park. Participating private companies also included Qatar Industrial Manufacturing Company (QIMC), Ebn Sina Medical, Qatar Aluminium (Qatalum), Doha Cables, Bin Aman Plastic Industries and Qatar Steel.