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Saturday, August 5, 2017 JOINT VENTURE: Page 2 Dhul-Qa’da 13, 1438 AH Toyota and Mazda team up to build GULF TIMES $1.6bn plant in US BUSINESS Kuwaiti fund KIA to sell Areva shares, stay away from nuclear

Reuters its equity has been wiped out by years of state had proposed that KIA take equity the restructuring but had no interest in Areva SA, once the vanguard of France’s Lauvergeon was put under formal Paris losses. stakes in nuclear fuel group Areva NewCo taking part in it in any way and will sell its nuclear export drive, as an empty shell investigation in May 2016 for her role in Following a state-funded €4.5bn rescue and reactor building unit Areva NP, which shares to the French state. with mainly the liabilities related to the the 2007 acquisition of uranium mining and restructuring of Areva, the French will both be spun off from the legacy Prior to the delisting of Areva SA, the troubled Olkiluoto 3 nuclear new build firm Uramin, which led to billions of euros Kuwait Investment Authority (KIA) will sell state will pay €4.5 per share for KIA’s Areva SA in which KIA is the main minor- state has launched a buyout off er that project in Finland. of writedowns that contributed to Areva’s its nearly 5% stake in Areva to the French 18.46mn shares, or about €83mn, repre- ity shareholder. runs from August 1 to 14. KIA off icials were not available for downfall. state as the nuclear group is delisted and senting an 86% loss for the fund. “A proposal was made to KIA but they Areva’s uranium mining and nuclear comment. Lauvergeon has repeatedly denied all will stay away from nuclear investments When it decided to buy the Areva stake have not followed up. KIA has no further fuel activities have been spun off as Areva French media have reported that wrongdoing. for now, sources familiar with the situa- nearly seven years ago, Kuwait was one of development projects in nuclear,” a NewCo, while its nuclear reactor unit KIA has complained to the state that its Next year, Gulf state UAE is set to be- tion told Reuters. several Gulf countries considering devel- source close to Areva told Reuters. Areva NP is being sold to state-owned investment in Areva in 2010 was based on come the first new nation to use nuclear Kuwait’s sovereign wealth fund, one oping nuclear power to meet demand for The source said that as main minority utility EDF. incorrect company accounts. energy in decades when it starts up the of the world’s biggest, paid €600mn electricity and water desalination. shareholder after the French state – which Japan’s MHI will buy minority stakes in The fund has never publicly comment- first of four nuclear reactors. ($712mn) for its 4.82% stake in 2010, but Two sources with direct knowledge of directly and indirectly owns nearly 89% of both units. ed on Areva’s accounts. Areva had fought hard to win that con- since then Areva’s stock has plunged as the situation told Reuters that the French Areva SA – KIA was kept informed about The restructuring leaves legacy Former Areva chief executive Anne tract but lost out to South Korea’s KEPCO.

Abu Dhabi’s Strong US jobs report boosts Mubadala sells second stake in case for more Fed tightening US-based

Reuters keep up with growth in the working- Washington age population. Republican President fi rm AMD Donald Trump, who inherited a strong job market from the Obama adminis- S employers hired more work- tration, cheered yesterday’s strong Reuters ers than expected in July and employment. “Excellent Jobs Num- Abu Dhabi Uraised their wages, signs of bers just released – and I have only labour market tightness that likely just begun,” Trump said on Twitter. clears the way for the Federal Reserve “Many job stifl ing regulations con- bu Dhabi’s Mubadala Invest- to announce a plan to start shrinking tinue to fall. ment Company yesterday said its massive bond portfolio. Trump has pledged to sharply boost Ait sold a 3.9% stake in Advanced The Labor Department said that economic growth and further strength- Micro Devices in its second sale of non-farm payrolls increased by en the labour market by slashing taxes, shares in the US-based semiconductor 209,000 jobs last month amid broad- cutting regulation and boosting infra- company this year. based gains. structure State-owned Mubadala sold 40mn June’s employment gain was re- spending. But after six months in shares or 3.9% of the outstanding vised up to 231,000 from the previ- offi ce, the Trump administration has shares of the company, inclusive of ously reported 222,000. failed to pass any economic legislation warrants and excluding the convert- Average hourly earnings increased and has yet to articulate plans for any ible bonds, Mubadala spokesman Brian nine cents, or 0.3%, in July after rising tax cuts and infrastructure spending Lott said. The value of the deal was not 0.2% in June. as well as most of its planned regula- disclosed. That was the biggest increase in tory rollbacks. The composition of the According to Reuters calculations, fi ve months. On a year-on-year basis, job gains in July mirrored June’s Manu- the sale value was $529.6mn based on wages increased 2.5% for the fourth facturing payrolls increased by 16,000 AMD’s closing share price of $13.24 on straight month. jobs, the largest increase since February. Thursday. “It was strong across the board. It Employment in the automobile puts (the Fed) still on track to start the sector rose by 1,600 despite slow- State-owned Mubadala sold programme to wind down the book in ing sales and bloated inventories that 40mn shares or 3.9% of the September and it’s a long ways off in have forced manufacturers to cut back outstanding shares of the December for the next rate hike,” said on production. US auto sales fell 6.1% company, inclusive of warrants Justin Lederer, an interest rate strate- in July from a year ago to a seasonally and excluding the convertible gist at Cantor Fitzgerald in New York. adjusted rate of 16.73mn units. bonds Lack of strong wage growth is sur- General Motors Co and Ford Motor prising given that the economy is near Co have both said they will cut pro- “This is in line with Mubadala’s full employment, but July’s monthly duction in the second half of the year. strategy as a fi nancial investor with increase in earnings could off er some Construction fi rms hired 6,000 a long-term perspective, to optimise assurance to Fed offi cials that infl ation workers last month. our shareholding in certain assets will gradually rise to its 2% target. Hiring at homebuilding sites in- and monetise them at the appropriate Economists expect the Fed will an- lending rate is in a range of 1% to employment rate dropped one-tenth some slack remains in the labour creased 5,100 last month. time,” Lott said. In March, Mubadala nounce a plan to start reducing its 1.25%. Prices of US government debt of a percentage point to 4.3% in July, market. A broad measure of unem- The professional and business sold 45mn shares for around $613mn. $4.2tn portfolio of Treasury bonds fell after the data while US stock index matching a 16-year low touched in ployment, which includes people services sector added 49,000 workers Mubadala continues to be the larg- and mortgage-backed securities at its futures added to gains. May. It has declined four-tenths of a who want to work but have given up to its payrolls last month. est shareholder in AMD, holding 57mn next policy meeting in September. The dollar rose sharply against a percentage point this year and is now searching and those working part- Retail payrolls rose by 900 in July as common shares and 75mn warrants, The Fed bought these securities to basket of currencies. at the most recent Fed median fore- time because they cannot fi nd full- hiring at motor vehicle and parts deal- representing a 12.9% stake. lower interest rates in the wake of the Economists polled by Reuters cast for 2017. time employment, was unchanged at erships as well as online retailers off - Mubadala, which has stakes in Gen- 2007-2009 fi nancial crisis. had forecast payrolls increasing by July’s decline in the jobless rate 8.6% last month. set a drop of 10,000 in employment at eral Electric and private equity fi rm Sluggish wage growth and the ac- 183,000 jobs in July and wages rising came even as more people entered the This alternative measure of unem- clothing stores. Companies like major Carlyle Group, among others, was for- companying benign infl ation, how- 0.3%. Wage growth is crucial to sus- labour force, underscoring job market ployment hit a 9-1/2-year low in May. online retailer Amazon are creating mally merged with another Abu Dhabi ever, suggest the US central bank will taining the economic expansion after strength. The labour force participa- July’s employment gains exceeded jobs at warehouses and distribution investment fund, International Petro- delay raising interest rates again until output increased at a 2.6% annual tion rate, or the share of working-age the monthly average of 184,000 for centres. Amazon this week held a se- leum Investment Co (IPIC) in January. December. rate in the second quarter, an accel- Americans who are employed or at this year. ries of job fairs to hire about 50,000 The merger created a fi rm with as- The Fed has raised rates twice this eration from the January-March pe- least looking for a job, rose one-tenth The economy needs to create workers. Government payrolls gained sets of about $122bn based on valua- year and its benchmark overnight riod’s pedestrian 1.2% pace. The un- of a percentage point to 62.9%. Still, 75,000 to 100,000 jobs per month to 4,000 in July. tions at the end of 2016. Siemens Gamesa wins Turkey’s fi rst wind power auction

Bloomberg Siemens Gamesa partnered with Tur- factory in Turkey and agree to em- Berlin’s government, Energy Minister Ankara key’s Turkerler and Kalyon at the auc- ploy a mostly local workforce. Energy Berat Albayrak said after the tender, tion, which needed 29 rounds to fi nd Minister Berat Albayrak estimated an apparent reference to months of a price. that development costs for the wind diplomatic discord between Turkey consortium led by Siemens “The aggressive bidding at 50% projects will be more than $1bn. and Europe’s biggest economy. Gamesa Renewable Energy below the ceiling price shows that Capacity will be spread throughout The win by a German fi rm is “really A won the right to build 1 giga- Siemens Gamesa really wanted to get Turkey. Before the auction, the gov- important in showing bilateral prob- watt of wind power in Turkey, outbid- into this market,” said Keegan Kruger, ernment had selected seven regions lems between the Turkish and German ding competitors from China to the wind analyst at Bloomberg New En- for developers to choose from, in- governments is not getting in the way US in the country’s fi rst wind power ergy Finance. “This tender also shows cluding Eastern Thrace near Bulgaria, of German business interests in Tur- auction. there’s a shift in mentality among the an area close to Ankara and the city of key,” Tim Ash, an emerging-market The group won with a low bid of turbine makers away from just being Sivas in central Turkey. strategist at BlueBay Asset Manage- 3.48 US cents a kilowatt-hour to suppliers.” The participation of Siemens ment in London, said in an e-mailed sell electricity to Turkey’s govern- Eight groups participated in the Gamesa, a Vizcya, Spain-based com- note. “The Turkish government has A consortium led by Siemens Gamesa won the right to build 1 gigawatt ment, according results distributed auction, which set out rules requiring pany majority owned by Germany’s been really keen to demonstrate this of wind power in Turkey, outbidding competitors from China to the on Thursday at the auction in Ankara. the winning bidder to build a turbine Siemens, should improve ties with and re-assure German business.” US in the country’s fi rst wind power auction Gulf Times 2 Saturday, August 5, 2017 BUSINESS India’s HPCL aims to buy US oil in next few months

Reuters grades which we found suitable for us,” Indian refiners stepped up purchases HPCL’s finance chief J Ramaswamy Rs20.98bn a year earlier. HPCL suff ered Surana said HPCL’s investment plans New Delhi chairman MK Surana said at a news of US oil after Indian Prime Minister said the company is evaluating if Nigerian an inventory loss of Rs15.95bn in the June will not be hit by its integration with conference. Narendra Modi’s visit to the Washington sweet oil can be replaced with US oil. quarter compared to a gain of Rs19.35bn a ONGC. “We should have a wider basket and in June when President Donald Trump He said HPCL has the appetite to im- year ago, Surana said. HPCL aims to invest Rs71bn in this fiscal India’s Hindustan Petroleum Corp plans to more options. US crude is an additional said the United States looked forward to port a very large crude carrier containing Gross refining margins, or profit earned year to expand its refining capacity and buy low-sulphur oil from the United States option for us,” he said. exporting more energy products to the 2mn barrels of US oil every month. on each barrel of crude processed, strengthen its marketing and pipeline in the next few months for its 166,000 India is the latest Asian country to buy world’s third-biggest oil buyer. HPCL reported a 56% drop in net profit dropped to $5.86 per barrel, compared to network. barrel per day (bpd) Vizag refinery in US crude, following South Korea, Japan, Since then, state-run Indian Oil Corp for the fiscal first quarter yesterday, as $6.83 per barrel in the same period last HPCL plans to boost the capacity of its southern India, company executives said China, Thailand, Australia and Taiwan, and Bharat Petroleum Corp have bought inventory losses dragged down its refin- year. Mumbai refinery to 190,000 bpd by July yesterday. after Opec cuts drove up prices of Middle US oil, as Indian refiners seek to diversify ing margins. The Indian government has decided 2019 from 130,000 bpd while its Vizag “We are also going to buy in the near East heavy-sour crude, or grades with a their crude import sources as arbitrage Net profit for the quarter ended June to sell its 51.1% stake in HPCL to state refinery will be ramped up to 300,000 future, in some months. There are certain high sulphur content. opens due to global oil supply cuts. 30 came in at Rs9.25bn ($145.26mn), from explorer Oil and Natural Gas Corp. bpd by July 2020.

Volvo Cars Toyota and Mazda to build to share engine technology $1.6bn US assembly plant with Geely Reuters Tokyo Reuters Beijing oyota Motor Corp and Mazda Motor Corp plan to build a $1.6bn TUS assembly plant, the two said weden’s Volvo Cars, a unit yesterday, as part of an alliance that will of Zhejiang Geely Hold- also see the Japanese automakers jointly Sing Group, has agreed to develop electric vehicle technologies. make some engines available for The two will take small stakes in each Geely-branded vehicles, sourc- other as part of the tie-up: Toyota, the es said, deepening ties between world’s second-largest automaker by the carmakers who already vehicle sales last year, will take a 5% share technology through third share of Mazda, extending its domi- brand Lynk & Co. nance in Japan’s auto sector. Three people close to Geely Mazda will take a 0.25% share of its and Volvo said the fi rst Volvo- larger rival. The plant, something of a powered Geely model was ex- surprise at a time of overcapacity in the pected to hit the market as early US market, will be a boost to US Presi- as late next year as a 2019 model dent Donald Trump, who campaigned year car. on promises to increase manufacturing The car will be equipped with and expand employment for American a new 1.5-litre turbo charged autoworkers. The plant will be capable of gasoline engine which Volvo producing 300,000 vehicles a year, with has been developing for smaller production divided between the two au- cars, the knowledgeable indi- tomakers, and employ about 4,000 peo- viduals said. ple. It will start operating in 2021. Volvo is expected to share a The electric vehicles cooperation, 2-litre turbo-charged engine meanwhile, comes as the tightening of at a later date and will also al- global emissions regulations prompts low Geely-branded cars to use more automakers to develop battery a common vehicle platform powered cars, as the industry struggles the two automakers developed with hefty research costs and intense jointly for Volvo and Lynk & Co. competition from technology companies “The terms of the recently over technology like self-driving cars. announced joint venture be- As part of the agreement, Toyota and tween Volvo Cars and Geely Mazda will also work together to devel- Group mean that existing and op in-car information technologies and future technologies can be automated driving functions. shared by Volvo, Geely Auto and Toyota, Japan’s biggest auto com- Lynk & Co, under licence agree- pany, has been forging alliances with ments,” a Volvo spokesman said. smaller Japanese rivals for several years, Analysts questioned Geely’s eff ectively engineering a loose consoli- ability to absorb the best of dation of the Japanese auto sector. Volvo when it acquired the au- It already owns a 16.5% stake in Sub- Journalists raise their hands to ask questions to Toyota president Akio Toyoda and Mazda president Masamichi Kogai during a joint news conference in Tokyo yesterday. tomaker from Ford Motor Co aru Corp, Japan’s No 6 automaker, with almost seven years ago. which it also has a development part- not too expensive. Maybe Toyota realis- It also gets a boost in electric cars. said Janet Lewis, head of Asia transpor- plant currently under construction in Yet Geely has been work- nership. Toyota is also courting com- es this,” CLSA managing director Chris With an R&D budget of around tation research at Macquarie Securities. Mexico, but this will shift to the United ing progressively to improve its pact car maker Suzuki Motor Corp to Richter said. ¥140bn ($1.27bn) this year, a fraction Mazda, whose annual global vehi- States, and the automaker will instead technology with Volvo know- cooperate on R&D and parts supply as “By buying a 5% stake, Toyota takes of Toyota’s ¥1tn, Mazda has said that it cle sales are one-eighth that of Toyota, produce its Tacoma truck model in how. Better designed cars fol- Toyota seeks to tap its smaller rival’s ex- Mazda off the table rather than having lacks the funds to develop electric cars caters to a specifi c audience largely in Mexico. lowing its 2010 purchase of pertise in emerging Asian markets. it sit out there like a free agent which on its own, a view shared by Subaru and North America with its design-con- Toyota has set a goal for all of its vehi- Volvo – such as its GC9 sedan A stake in Mazda may also prevent fu- could someday be used against them.” Suzuki. scious sedans and SUVs, and has been cles to be zero emission by 2050. and Boyue sport-utility vehicle ture incursions by tech companies, one Mazda stands to gain from a deal that “Mazda needs electrifi cation tech- focusing on developing more fuel-effi - Last year it established a divi- – have helped lift Geely’s for- analyst said. gives the small automaker a production nology. In the past they’ve pooh- cient gasoline engines. The automakers sion to develop full-sized EVs, shift- tunes. “For a technology company which foothold in the United States. At the poohed EVs, they’ve felt that they can plan to produce Toyota Corollas and a ing gears after long favouring EVs only Its China sales grew 50% last lacks the expertise in making cars, moment, Mazda ships all vehicles sold make internal combustion engines more new Mazda SUV crossover at the new for short-distance commuting given year to 766,000 vehicles and Mazda could look like a very interesting in the country, its biggest market, from effi cient, but the bottom line is that glo- plant. Toyota initially had been plan- their limited driving range and lengthy it expects sales to climb well acquisition. They’re very good, they’re its plants in Japan and Mexico. bally you need to have this technology,” ning to produce Corollas at its new $1bn charging time. above the 1mn mark this year. Ultimately, it aspires to sell more outside China. Earlier this year, Geely bought 49.9% of struggling Malaysian carmaker Proton from con- glomerate DRB-HICOM Bhd. Japan GDP seen expanding for 6th straight quarter Geely offi cials have told Reu- ters the Hangzhou automaker is planning to improve Proton Reuters poll found, which would be the fi rst de- cars by sharing Geely and Volvo Tokyo duction for negative net exports in four technologies. quarters. But analysts say the trend of Analysts have said one big exports remains upward on overseas de- risk for Volvo, as it combines apan’s economy was expected to mand while gains in imports refl ected more with its parent, is the di- grow for a sixth straight quarter in strong domestic demand. lution of Volvo’s brand image JApril-June, a Reuters poll found yes- The poll found capital spending was by sharing its technology and terday, buoyed by domestic demand as expected to show a rise of 1.2% in the know-how with a Chinese auto consumer spending recovered and fi rms second quarter after increasing 0.6% the upstart. increased their capital investment. previous quarter. Volvo chief executive Hakan Gross domestic product (GDP) was The Cabinet Offi ce will announce the Samuelsson said the key was seen expanding at an annualised rate of GDP data on August 14 at 8:50am. to diff erentiate the brand suffi - 2.5% in the second quarter, the poll of Japan will publish core machinery or- ciently – even if the two groups 20 analysts found, a rate last posted in ders next week, which are seen likely to share more technology. January-March 2016, while the last six show a 3.7% increase in June from May For Volvo, that is about more straight quarter run of growth was Jan- when they dropped 3.6%, and up for the and better safety equipment, uary-March 2005 through April-June fi rst time in three months. among other aspects. 2006. An outcome of 3.7% would mark the “The progress Geely has been The anticipated 2.5% expansion would fastest rate of growth since July 2016. able to make in improving prod- translate to 0.6% on quarter-on-quarter The core orders, which exclude ships ucts and brand image over the growth after a revised 0.3% rise in the and equipment for power generators, past several years makes me feel fi rst quarter this year. are a highly volatile data series regarded more confi dent they can execute “The economy for this fi scal year will as an indicator of capital spending in the this process successfully,” Yale likely continue recovering, helped by the coming six to nine months. Zhang, head of Shanghai-based global economic recovery,” said Hideno- June was seen down 1% in from a year consultancy Automotive Fore- bu Tokuda, senior economist at Mizuho earlier following a 0.6% rise in May. sight, said. Research Institute. “Machinery orders from the manufac- Last month Geely and Volvo “Consumer sentiment is improv- turing sector have improved recently... said they plan to go beyond Lynk ing on higher share prices and durable The focus is whether orders from the & Co and create a joint venture goods purchases are picking up, which non-manufacturing sector for labour- to share technology, such as ve- likely contributed positively to consumer saving equipment will rise,” an analyst hicle architecture and engines spending.” at SMBC Nikko Securities said in the via cross licensing arrange- Private consumption, which accounts survey. ments managed by that joint for roughly 60% of GDP, likely grew The Cabinet Offi ce will issue the ma- venture. 0.5% in the second quarter, after a 0.3% chinery orders report on August 10. Samuelsson told Reuters last gain in the January-March period. Japan’s current account balance, due month the deal would provide External demand – or exports minus out on Tuesday, is expected to show a Volvo with greater development A cargo ship is seen at an industrial port in Tokyo. Japan’s gross domestic product is seen expanding at an annualised rate of imports – was thought likely to shave surplus of ¥814bn ($7.40bn) in June from resources and effi ciency in pur- 2.5% in the second quarter, a poll of 20 analysts found. 0.3 percentage point off growth, the ¥1.65tn in May, the poll showed. chasing parts. Gulf Times Saturday, August 5, 2017 3 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 22,059.83 +33.73 Apple Inc 156.29 0.46 11,869,901 S&P 500 Index 2,476.18 +4.02 Microsoft Corp 72.89 1.03 8,377,942 Nasdaq Composite Index 6,348.39 +8.05 Exxon Mobil Corp 80.24 -0.31 3,238,994 S&P/Tsx Composite Index 15,247.84 +55.88 Johnson & Johnson 133.07 -0.21 1,238,857 Mexico Bolsa Index 51,348.39 +55.32 General Electric Co 25.73 -0.12 9,132,277 Brazil Bovespa Stock Idx 66,947.41 +170.28 Jpmorgan Chase & Co 94.18 1.82 7,102,737 Ftse 100 Index 7,511.71 +36.94 Procter & Gamble Co/The 90.66 -0.23 1,793,140 Cac 40 Index 5,203.44 +72.95 Wal-Mart Stores Inc 80.51 -0.45 3,329,751 Dax Index 12,297.72 +143.00 Verizon Communications Inc 48.44 -0.36 4,737,322 Ibex 35 Tr 10,658.40 +109.30 Pfizer Inc 33.68 0.75 10,864,005 Nikkei 225 19,952.33 -76.93 Visa Inc-Class A Shares 100.80 0.21 1,857,822 Japan Topix 1,631.45 -2.37 Chevron Corp 109.77 0.31 1,578,707 Hang Seng Index 27,562.68 +31.67 Coca-Cola Co/The 45.58 -0.21 3,367,321 All Ordinaries Indx 5,773.31 -13.52 Intel Corp 36.32 -0.47 8,051,931 Nzx All Index 1,416.04 -1.02 Merck & Co. Inc. 63.10 -0.67 1,782,058 Bse Sensex 30 Index 32,325.41 +87.53 Cisco Systems Inc 31.73 0.52 4,975,875 Nse S&P Cnx Nifty Index 10,066.40 +52.75 Home Depot Inc 151.41 0.41 1,357,828 Straits Times Index 3,326.52 -16.40 Intl Business Machines Corp 145.08 0.10 1,072,161 Karachi All Share Index 33,038.76 -123.27 Walt Disney Co/The 107.75 -1.26 4,317,113 Jakarta Composite Index 5,777.48 -3.09 Unitedhealth Group Inc 195.00 0.12 1,023,410 3M Co 206.33 -0.62 545,505 Mcdonald’s Corp 153.99 -0.47 1,519,716 Nike Inc -Cl B 59.74 -0.67 1,939,050 TOKYO United Technologies Corp 120.80 -0.25 409,358 Boeing Co/The 238.08 -0.07 2,585,385 Company Name Lt Price % Chg Volume Goldman Sachs Group Inc 228.13 1.85 1,516,460 Rakuten Inc 1,341.00 0.68 3,725,800 American Express Co 86.25 0.83 1,052,330 Kyocera Corp 6,640.00 -0.82 701,300 Du Pont (E.I.) De Nemours 81.78 0.55 708,132 Nissan Motor Co Ltd 1,085.50 -0.50 11,948,200 Caterpillar Inc 114.29 0.64 1,021,945 Hitachi Ltd 738.80 -0.65 14,743,000 Travelers Cos Inc/The 129.73 0.13 521,323 Takeda Pharmaceutical Co Ltd 5,974.00 0.40 1,693,800 Traders at the Frankfurt Stock Exchange. The DAX 30 rose 1.1% to 12,297.72 points yesterday. Jfe Holdings Inc 2,282.00 1.00 3,837,200 Ana Holdings Inc 410.00 0.24 17,496,000 FTSE 100 Mitsubishi Electric Corp 1,729.50 -0.97 3,170,800 Sumitomo Mitsui Financial Gr 4,254.00 -0.56 3,571,600 Company Name Lt Price % Chg Volume Honda Motor Co Ltd 3,125.00 -1.88 5,314,900 Fast Retailing Co Ltd 33,110.00 -0.81 386,800 Wpp Plc 1,570.00 0.06 2,709,959 Ms&Ad Insurance Group Holdin 3,880.00 -0.97 1,485,500 Worldpay Group Plc 371.00 0.27 12,667,683 Kubota Corp 2,050.00 4.27 7,857,000 European markets gain Wolseley Plc 0.00 0.00 - Seven & I Holdings Co Ltd 4,503.00 0.54 1,552,900 Wm Morrison Supermarkets 249.80 0.64 8,155,753 Inpex Corp 1,068.00 -0.88 3,241,500 Whitbread Plc 3,898.00 0.83 389,948 Resona Holdings Inc 572.80 -0.26 8,018,300 Vodafone Group Plc 225.00 0.45 54,401,833 Asahi Kasei Corp 1,291.50 0.12 3,737,000 United Utilities Group Plc 914.00 0.33 1,812,132 Kirin Holdings Co Ltd 2,370.00 -4.49 5,307,300 Unilever Plc 4,357.00 0.74 2,132,889 Marubeni Corp 694.00 -1.56 12,841,100 on strong US job report Tui Ag-Di 1,244.00 0.97 995,624 Mitsubishi Ufj Financial Gro 725.80 1.82 24,621,800 Travis Perkins Plc 1,519.00 -0.72 2,116,524 Mitsubishi Chemical Holdings 937.70 -1.63 7,560,800 Tesco Plc 180.15 0.08 12,624,409 But others were less reticent. “Strong reach parity with its European rival, has Fanuc Corp 22,565.00 -0.55 562,900 AFP Taylor Wimpey Plc 187.90 -3.74 35,810,745 wage growth is key takeaway today,” sparked praise bordering on the emo- Daito Trust Construct Co Ltd 19,650.00 1.34 449,900 London Standard Life Plc 447.10 0.25 5,088,788 ING Economics said. “Throw in decent tional. Otsuka Holdings Co Ltd 4,808.00 -1.46 832,800 Standard Chartered Plc 802.50 1.51 7,416,155 Oriental Land Co Ltd 8,055.00 -0.06 539,200 infl ation next week and markets might “Investors are totally in love with the St James’s Place Plc 1,225.00 0.25 798,650 Sekisui House Ltd 1,904.00 0.08 1,863,200 he beleaguered dollar got a shot start tentatively re-aligning with Fed euro at the moment – it’s come from Sse Plc 1,403.00 0.21 4,242,207 Secom Co Ltd 8,444.00 0.33 376,000 in the arm from strong US jobs dots.” a very cheap level and taken on a mo- Smith & Nephew Plc 1,328.00 0.23 1,890,097 Tokio Marine Holdings Inc 4,699.00 -0.42 1,393,200 data yesterday, with equities also One strong jobs report may not how- mentum of its own,” William Hamlyn, Sky Plc 968.00 -0.10 2,659,735 T Aeon Co Ltd 1,688.00 -0.06 1,462,400 Shire Plc 4,018.50 -2.42 4,614,633 pushing ahead as investors welcomed ever be enough to sway sceptical in- investment analyst at Manulife Asset Mitsui & Co Ltd 1,665.50 1.09 10,261,400 Severn Trent Plc 2,272.00 0.18 743,447 the unequivocal signs of American eco- vestors trying to second-guess the US Management, told AFP. Kao Corp 6,754.00 0.48 950,400 Schroders Plc 3,482.00 0.46 330,053 nomic strength. central bank, they said. “There’s a general nervousness that Dai-Ichi Life Holdings Inc 1,924.00 -0.41 3,683,200 Sainsbury (J) Plc 252.50 0.08 4,854,200 Mazda Motor Corp 1,688.50 2.80 18,162,800 The world’s largest economy added The employment data temporarily this strong euro is beginning to impact Sage Group Plc/The 689.00 1.32 2,469,284 Komatsu Ltd 3,002.00 0.54 2,909,700 209,000 net new positions in July, well dispelled gloom triggered by a report European corporate profi ts – we are Abi Sab Group Holding Ltd 0.00 0.00 - West Japan Railway Co 8,097.00 0.80 444,100 above forecasts, driving the unemploy- on a probe into alleged Russian inter- starting to see it in this quarter’s re- Rsa Insurance Group Plc 647.00 -0.23 2,037,511 Murata Manufacturing Co Ltd 17,545.00 -1.68 705,800 Royal Mail Plc 400.20 -0.35 2,606,792 ment rate down to 4.3%, a 16-year low. ference in the US election. sults,” he said. Kansai Electric Power Co Inc 1,484.00 -1.56 1,778,600 Royal Dutch Shell Plc-B Shs 2,218.50 0.52 3,449,772 The data possibly gives the Federal They also helped European equi- Wall Street also held on to small Denso Corp 5,326.00 -1.06 1,669,800 Royal Dutch Shell Plc-A Shs 2,183.00 0.34 4,285,636 Reserve a clear shot at raising rates after ties extend early tentative gains ahead early gains approaching midday, pos- Sompo Holdings Inc 4,408.00 -0.47 812,100 Royal Bank Of Scotland Group 261.20 1.95 26,581,754 sibly heading for an eight straight clos- Daiwa House Industry Co Ltd 3,892.00 0.00 781,200 months of infl ation weakness cloud- of the weekend, as newly found dollar Rolls-Royce Holdings Plc 962.00 0.73 4,775,138 Jxtg Holdings Inc 494.70 -0.04 8,902,400 ing the outlook, dealers said, although strength took the pressure off the euro ing gain, but political worries weighed Rio Tinto Plc 3,546.00 1.71 4,883,164 Nippon Steel & Sumitomo Meta 2,704.50 -0.17 2,564,000 some noted that wages are still not ris- whose recent rise has been threatening heavily on US investors. Rexam Ltd 0.00 0.00 - Suzuki Motor Corp 5,636.00 8.70 6,431,800 Overnight, the revelation by the Wall Relx Plc 1,678.00 0.90 1,928,699 ing fast enough for comfort. to undermine the competitiveness of Nippon Telegraph & Telephone 5,435.00 0.02 1,784,300 Reckitt Benckiser Group Plc 7,507.00 0.68 1,491,395 “The July jobs report from the US eurozone exporters. Street Journal that special counsel Rob- Ajinomoto Co Inc 2,230.50 -0.45 1,840,300 Randgold Resources Ltd 7,100.00 -1.87 550,314 appeared to tick all the boxes when the In London, the FTSE 100 gained ert Mueller has convened a grand jury Mitsui Fudosan Co Ltd 2,497.50 -2.59 4,702,600 Prudential Plc 1,866.00 0.57 2,819,205 numbers were released, strong jobs 0.5% to 7,511.71 points, the DAX 30 rose to investigate Russia’s interference in Ono Pharmaceutical Co Ltd 2,336.00 -2.50 2,644,100 Provident Financial Plc 2,100.00 0.33 391,968 Daikin Industries Ltd 11,540.00 -1.45 930,600 gains, higher participation and unem- 1.1% at 12,297.72 and CAC 40 was up the 2016 presidential election – a step Persimmon Plc 2,464.00 -3.98 4,589,803 Bank Of Yokohama Ltd/The 0.00 0.00 - ployment back at 16-year lows,” said 1.4% at 5,203.44 at close yesterday. towards possible criminal indictments Pearson Plc 655.50 -2.02 5,189,723 Toray Industries Inc 992.30 -1.31 4,236,200 Craig Erlam, senior market analyst at But fundamentals are still in favour – sparked a furious reaction from Pres- Paddy Power Betfair Plc 7,920.00 0.96 99,904 Astellas Pharma Inc 1,403.00 -0.25 5,075,400 Old Mutual Plc 204.80 -0.10 6,588,322 Oanda. of the European single currency, many ident Donald Trump and dented gains Bridgestone Corp 4,764.00 0.49 1,496,300 Next Plc 4,393.00 -0.18 1,262,401 “But as ever, there was one crucial believe. on Wall Street. Sony Corp 4,434.00 0.34 3,123,600 National Grid Plc 955.00 -0.31 8,354,131 component missing,” he cautioned, “The eurozone is today seen by many The report sent the European sin- Hoya Corp 6,342.00 -0.05 988,200 Mondi Plc 1,978.00 1.54 1,848,431 “the path back to higher earnings con- as a zone of stability,” Philippe Waech- gle currency surging on Wednesday to Sumitomo Mitsui Trust Holdin 4,048.00 -0.10 1,067,100 Merlin Entertainment 489.40 5.75 6,589,168 Japan Tobacco Inc 3,802.00 -0.91 4,539,100 tinues to be a painfully slow one. The ter, an economist at Natixis, told AFP. $1.1910 – its highest level since early Mediclinic International Plc 756.00 4.06 1,928,085 Osaka Gas Co Ltd 439.50 0.07 4,173,000 (workers’) earnings numbers for June The remarkable recovery of the euro January 2015. By the later afternoon in Marks & Spencer Group Plc 330.50 0.39 3,897,894 Sumitomo Electric Industries 1,747.50 1.42 3,649,000 were once again the only disappoint- against the dollar, which shortly after Europe yesterday, the euro had retreat- London Stock Exchange Group 3,892.00 0.31 561,992 Daiwa Securities Group Inc 635.80 0.13 6,215,000 Lloyds Banking Group Plc 66.81 0.45 158,358,500 ment in an otherwise stellar report.” Donald Trump’s election threatened to ed to $1.1761. Softbank Group Corp 8,813.00 -0.32 3,655,400 Legal & General Group Plc 272.50 -0.22 16,880,742 Mizuho Financial Group Inc 193.70 -0.36 73,709,200 Land Securities Group Plc 1,019.00 -0.68 1,531,701 Nomura Holdings Inc 648.80 -0.49 10,615,300 Kingfisher Plc 307.00 0.23 10,520,776 HONG KONG HONG KONG Daiichi Sankyo Co Ltd 2,364.00 -0.80 1,720,200 Johnson Matthey Plc 2,814.00 1.11 345,036 Subaru Corp 3,920.00 -0.25 4,088,300 Itv Plc 175.50 -0.28 11,191,565 Ntt Docomo Inc 2,595.00 -0.19 2,573,600 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intu Properties Plc 256.00 0.31 3,118,992 Sumitomo Realty & Developmen 3,345.00 -0.03 1,692,000 Intl Consolidated Airline-Di 617.50 1.65 8,116,051 Aluminum Corp Of China Ltd-H 5.05 -4.54 91,839,246 Hong Kong & China Gas 14.90 0.40 6,637,465 Sumitomo Metal Mining Co Ltd 1,727.50 -0.20 2,823,000 Intertek Group Plc 4,691.00 1.12 231,071 Bank Of East Asia Ltd 33.80 -0.29 1,089,683 Hong Kong Exchanges & Clear 227.60 0.00 5,310,460 Orix Corp 1,838.50 -0.68 4,942,600 Intercontinental Hotels Grou 4,355.00 1.28 424,824 Bank Of China Ltd-H 3.95 0.00 268,773,263 Hsbc Holdings Plc 78.50 0.32 22,477,181 Asahi Group Holdings Ltd 4,632.00 1.85 2,160,300 Inmarsat Plc 754.00 -0.66 2,035,832 Bank Of Communications Co-H 5.90 0.00 17,180,097 Hutchison Whampoa Ltd 0.00 0.00 - Keyence Corp 51,950.00 -0.33 258,600 Informa Plc 710.50 0.42 1,337,358 Belle International Holdings 6.24 0.00 - Ind & Comm Bk Of China-H 5.63 0.18 294,495,074 Nidec Corp 12,720.00 -1.05 813,300 Imperial Brands Plc 3,308.00 0.08 1,643,986 Boc Hong Kong Holdings Ltd 39.25 0.00 9,855,012 Li & Fung Ltd 2.84 0.00 7,206,919 Isuzu Motors Ltd 1,488.50 -0.30 1,943,800 Hsbc Holdings Plc 769.00 1.02 13,714,147 Cathay Pacific Airways 12.24 0.66 2,062,000 Mtr Corp 46.15 1.43 4,828,331 Unicharm Corp 2,857.00 -1.00 789,200 Hargreaves Lansdown Plc 1,347.00 -2.60 2,923,422 Ck Hutchison Holdings Ltd 105.10 -3.13 17,397,988 New World Development 10.68 0.19 23,457,185 Shin-Etsu Chemical Co Ltd 10,040.00 -1.47 932,200 Hammerson Plc 577.50 0.17 3,068,853 China Coal Energy Co-H 4.20 7.42 104,840,226 Petrochina Co Ltd-H 5.02 0.20 66,808,994 Smc Corp 35,740.00 0.31 152,100 Glencore Plc 337.80 0.79 39,523,851 China Construction Bank-H 6.60 0.15 200,468,815 Ping An Insurance Group Co-H 58.85 -0.34 22,455,472 Mitsubishi Corp 2,564.50 1.14 8,095,500 Glaxosmithkline Plc 1,534.00 0.39 6,033,470 China Life Insurance Co-H 24.90 -0.99 51,242,770 Power Assets Holdings Ltd 77.55 0.06 2,677,940 Nintendo Co Ltd 37,600.00 0.62 2,339,200 Gkn Plc 324.90 0.31 5,689,698 China Merchants Port Holding 25.30 2.64 7,815,659 Sino Land Co 13.04 0.93 2,766,290 Eisai Co Ltd 5,776.00 -1.28 637,300 Fresnillo Plc 1,457.00 -3.45 1,269,437 China Mobile Ltd 83.35 -0.42 12,840,141 Sun Hung Kai Properties 123.50 1.06 5,185,870 Sumitomo Corp 1,551.00 -1.71 6,253,400 Experian Plc 1,534.00 0.46 1,529,896 China Overseas Land & Invest 26.40 -0.56 13,850,401 Swire Pacific Ltd - Cl A 78.80 0.38 806,118 Canon Inc 3,853.00 -0.57 2,315,800 Easyjet Plc 1,265.00 0.16 3,148,118 China Petroleum & Chemical-H 5.90 0.00 84,056,342 Tencent Holdings Ltd 311.40 0.91 17,217,901 Japan Airlines Co Ltd 3,764.00 1.10 1,821,700 Dixons Carphone Plc 269.60 0.41 2,786,788 China Resources Beer Holdin 20.25 1.25 2,751,354 Wharf Holdings Ltd 71.55 1.06 5,410,291 Direct Line Insurance Group 404.00 0.17 4,650,584 China Resources Land Ltd 24.10 -0.82 9,878,864 China Resources Power Holdin 15.18 0.93 4,831,295 Diageo Plc 2,503.00 1.89 4,441,511 SENSEX Dcc Plc 6,955.00 0.00 106,212 China Shenhua Energy Co-H 19.84 -1.29 44,254,048 GCC INDICES Crh Plc 2,699.00 1.09 1,375,262 China Unicom Hong Kong Ltd 11.72 0.69 48,985,985 Compass Group Plc 1,631.00 0.93 2,316,650 Company Name Lt Price % Chg Volume Citic Ltd 11.94 0.67 8,061,000 Indices Lt Price Change Coca-Cola Hbc Ag-Di 2,348.00 1.87 473,740 Clp Holdings Ltd 84.50 0.12 1,923,568 Doha Securities Market Zee Entertainment Enterprise 541.85 0.35 3,758,611 9,398.09 +37.50 Centrica Plc 199.70 -1.33 15,152,529 Cnooc Ltd 8.70 -0.46 41,918,399 Saudi Tadawul Yes Bank Ltd 1,807.95 1.26 3,029,524 7,085.56 +4.69 Carnival Plc 5,220.00 1.26 314,758 Cosco Shipping Ports Ltd 9.57 0.42 3,486,000 Kuwait Stocks Exchange Wipro Ltd 289.40 0.10 2,763,736 6,825.70 +1.75 Capita Plc 669.00 0.60 2,134,088 Esprit Holdings Ltd 3.92 -0.51 2,114,236 Bahrain Stock Exchage Vedanta Ltd 288.85 3.18 11,052,833 1,322.58 -3.58 Burberry Group Plc 1,789.00 1.19 2,571,226 Fih Mobile Ltd 2.62 0.38 4,230,000 Oman Stock Market Ultratech Cement Ltd 4,081.35 -0.07 183,105 5,057.57 -16.82 Bunzl Plc 2,305.00 0.66 528,126 Hang Lung Properties Ltd 20.05 0.35 3,121,769 Abudhabi Stock Market Tech Mahindra Ltd 409.00 0.45 2,092,537 4,596.03 -12.26 Bt Group Plc 316.75 0.91 41,692,435 Hang Seng Bank Ltd 175.30 -0.45 788,290 Dubai Financial Market Tata Steel Ltd 575.85 2.96 3,852,812 3,675.12 +14.18 British Land Co Plc 612.50 -0.65 2,391,204 Henderson Land Development 47.00 1.29 4,842,382 Tata Power Co Ltd 80.25 -2.90 5,529,869 British American Tobacco Plc 5,057.00 1.06 5,572,591 Tata Motors Ltd 435.60 0.96 5,507,132 Bp Plc 463.30 0.59 17,486,568 Tata Consultancy Svcs Ltd 2,522.80 1.34 723,285 Bhp Billiton Plc 1,365.00 0.55 6,968,392 Sun Pharmaceutical Indus 506.40 -1.83 8,243,926 Berkeley Group Holdings/The 3,544.00 0.23 861,399 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 305.25 1.56 10,665,761 Barratt Developments Plc 589.00 -4.69 10,694,088 Reliance Industries Ltd 1,622.15 -1.69 4,531,597 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Barclays Plc 210.35 0.89 24,066,867 Punjab National Bank 151.05 1.17 13,878,022 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Bae Systems Plc 586.50 -0.51 10,896,691 Power Grid Corp Of India Ltd 224.60 0.74 4,604,113 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Babcock Intl Group Plc 866.00 1.76 1,708,189 Oil & Natural Gas Corp Ltd 166.40 0.42 6,959,382 this data.” Aviva Plc 533.50 -0.93 9,758,482 Ntpc Ltd 177.35 2.78 8,209,290 Astrazeneca Plc 4,534.00 -0.61 2,865,656 Maruti Suzuki India Ltd 7,770.30 0.43 340,367 Associated British Foods Plc 3,109.00 1.20 800,094 Mahindra & Mahindra Ltd 1,418.05 0.11 2,375,108 Ashtead Group Plc 1,644.00 0.43 1,297,278 Lupin Ltd 992.80 -0.06 4,544,065 CURRENCIES Arm Holdings Plc 0.00 0.00 - Larsen & Toubro Ltd 1,175.85 0.09 1,342,245 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Antofagasta Plc 942.00 -0.21 1,950,924 DINAR DINAR Kotak Mahindra Bank Ltd 996.20 -0.02 1,237,632 Anglo American Plc 1,270.50 1.28 5,707,517 Itc Ltd 280.75 -0.23 12,044,071 Admiral Group Plc 2,168.00 0.46 300,256 Infosys Ltd 983.75 -0.03 2,744,404 3I Group Plc 951.50 0.26 980,416 Indusind Bank Ltd 1,664.70 1.19 580,564 Idea Cellular Ltd 92.70 -0.59 11,066,799 Icici Bank Ltd 296.25 0.19 11,991,926 TOKYO Housing Development Finance 1,731.35 -0.31 5,433,983 Hindustan Unilever Ltd 1,192.10 1.90 1,172,447 Hindalco Industries Ltd 225.25 1.95 6,214,514 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 3,956.55 3.08 856,557 East Japan Railway Co 10,430.00 0.19 462,200 Hdfc Bank Limited 1,790.25 0.58 935,498 Itochu Corp 1,732.00 -2.15 10,068,700 Hcl Technologies Ltd 890.65 1.70 607,494 Fujifilm Holdings Corp 4,045.00 -0.42 1,105,800 Grasim Industries Ltd 1,126.30 0.01 383,213 Yamato Holdings Co Ltd 2,216.00 -0.16 1,063,900 Gail India Ltd 377.75 1.94 3,269,004 Chubu Electric Power Co Inc 1,450.00 -3.62 3,340,700 Dr. Reddy’s Laboratories 2,239.55 -3.63 1,332,434 Mitsubishi Estate Co Ltd 2,006.00 -0.59 3,666,100 Coal India Ltd 249.20 3.08 7,931,266 Mitsubishi Heavy Industries 436.80 -0.16 13,997,000 Cipla Ltd 568.70 2.07 1,096,473 Toshiba Corp 256.00 -19.24 15,959,000 Cairn India Ltd 0.00 0.00 - Shiseido Co Ltd 3,949.00 -1.50 791,400 Bosch Ltd 24,560.20 -1.16 21,648 Shionogi & Co Ltd 5,836.00 -1.12 1,120,100 Bharti Airtel Ltd 420.90 -0.78 2,863,381 Tokyo Gas Co Ltd 576.20 0.84 7,379,000 Bharat Petroleum Corp Ltd 517.90 5.69 5,745,700 Tokyo Electron Ltd 14,840.00 -2.40 1,965,100 Bharat Heavy Electricals 137.25 -1.01 3,703,989 Panasonic Corp 1,504.00 -0.53 5,255,500 Bank Of Baroda 158.95 0.47 7,857,611 Fujitsu Ltd 832.50 0.23 6,159,000 Bajaj Auto Ltd 2,874.65 1.43 321,110 Central Japan Railway Co 17,865.00 -1.11 310,500 Axis Bank Ltd 508.10 0.42 5,213,376 T&D Holdings Inc 1,669.50 -1.10 2,699,800 Asian Paints Ltd 1,157.30 0.98 609,549 Toyota Motor Corp 6,216.00 -0.14 7,121,300 Ambuja Cements Ltd 277.45 1.97 4,351,705 Kddi Corp 2,998.00 -0.23 4,704,300 Adani Ports And Special Econ 406.65 -0.17 2,878,449 Nitto Denko Corp 10,260.00 -1.87 625,400 Acc Ltd 1,813.35 0.15 609,457 Gulf Times 4 Saturday, August 5, 2017 BUSINESS/LEISURE

Silicon Valley talent war has Toyota seeking techies at home

Bloomberg like this,” said Casey Abel, man- are able to really compete with Motors Co and Ford Motor Co. think tanks where there’s a lot of Tokyo aging director at recruiter HCCR real IT giants for market- mov- Japanese companies are play- talent,” said Bob Carter, execu- KK based in Tokyo. “It says a lot ing talent,” said Abel. “I’m sure ing catch-up with US rivals when tive vice president of sales for when companies such as Toyota on a spot basis they can get peo- it comes to making inroads into Toyota Motor North America. hen it comes to re- have to get this aggressive in ple in Silicon Valley, but getting the fi elds of IT. Ford established a “Plus we have a very good repu- cruiting tech talent, order to attract the talents they them is only half the battle as science lab in Palo Alto in 2012 to tation, so that helps.” WToyota Motor Corp is need to navigate these markets.” the competition is even more develop software, while GM has On top of that, Toyota last anything but subtle. Such are the pressures bearing intense there,” he said. “Re- built two data centres in Michi- month started a $100mn ven- The Japanese automaker re- down on Toyota as it searches for tention and ability to provide gan since 2013 to streamline ture fund, Toyota AI Ventures, to cently launched a marketing global IT talent to power its ex- people with a chance for mean- product development, manufac- invest in start-ups. Many of the campaign targeting information pansion into autonomous driv- ingful and interesting work is turing, marketing, sales as well as best minds want to have their technology specialists and soft- ing and artifi cial intelligence. amplifi ed much more when you connectivity services. own fi rms rather than be sala- ware engineers along Tokyo’s “As cars become smarter, car- have Apple, Google, fl ying car Toyota last year announced its ried employees so they can profi t suburban Nambu railway line, makers need strong software en- startups, Amazon and others all connected-car strategy, which from their business when the where the research centres of gineering capabilities to launch around you.” includes building a big data cen- technology takes off . The fund Japan’s signature tech giants are connectivity-based products,” Toyota Camry sedan is seen at a news conference in Tokyo. The Toyota, despite softer sales tre in Plano, Texas to better un- has already invested in a maker clustered. said Zhou Lei, a Tokyo-based Japanese automaker recently launched a marketing campaign this year, remains the most derstand how its customers drive of cameras that monitor drivers “We want engineers from partner at Deloitte Tohmatsu targeting information technology specialists and software profi table company in terms of the cars. The company also spent and roads, a creator of autono- Nambu Line area more than from Consulting. “They’re tradition- engineers along Tokyo’s suburban Nambu railway line, where the operating profi t in Japan. The $1bn in 2015 to form a research mous car-mapping algorithms Silicon Valley,” declares one ally strong in mechanical engi- research centres of Japan’s signature tech giants are clustered. carmaker is scheduled to report institute in the US focused on and a developer of robotic com- poster at Mukaigawara station, neering, but when it comes to fi rst-quarter earnings Friday. artifi cial intelligence and robot- panions for the elderly. where one of the exits is desig- connectivity and software, elec- home, where average salaries for which has a research centre in Operating profi t is expected to ics technology and hired former “They didn’t have anyone nated exclusively for NEC Corp tronics makers, communica- IT professionals are about 6mn the area, is forecasting a loss of decline 15% from a year earlier to US defence scientist Gill Pratt to who specialises in these fi elds, employees. tions and mobile companies are yen ($54,500) a year, about half ¥995.2bn for its last fi scal year ¥548.2bn, according to the aver- lead it. so they can’t internally groom Toyota’s talent raid is unu- a good fi t to transfer their capa- of what counterparts in the US and is selling its semiconductor age of 6 analyst estimates com- Since then, the institute has those engineers,” said Koji Endo, sual in a country where lifetime bilities to automakers.” earn, according to a survey by the business to cover multibillion- piled by Bloomberg. established research centres lo- an auto analyst at SBI Securities employment is still the norm at Salaries have soared in Silicon Ministry of Economy, Trade and dollar losses in its nuclear unit. Part of the reason for the de- cated quite close to four major in Tokyo. “Toyota had been able many big companies. “It’s very Valley for automotive technology Industry (METI) of Japan. Telecommunication and elec- cline is the surge in R&D costs, US universities: Stanford, MIT, to manage on its own in the past, unique for a Japanese company experts thanks to the emergence The technology belt along the tronic device maker NEC report- which is forecast to rise 1.2% to Carnegie Mellon and the Uni- but going forward, it will need to as well-known as Toyota to bla- of Uber Technologies Inc and Nambu line in Tokyo has yet to ed the smallest annual operating ¥1.05tn this fi scal year, as the car- versity of Michigan. do it with someone else. Wheth- tantly target specifi c talent mar- Tesla Inc as serious rivals. That’s produce a world-class startup profi t in eight years. maker spends big on Internet con- “This close co-location pro- er that is through collaboration, kets or companies with direct why Toyota and Honda Motor and some once-mighty names “They may have to settle for nectivity and autonomous driving vides a natural mechanism for joint venture, or M&A remains to advertising in regional locations Co are looking for engineers at are in decline. Toshiba Corp, Nambu Line all-stars until they to keep up with Tesla, General recruitment at universities and be seen.”

Sudoku Adam

Pooch Cafe

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

Super Cryptic Clues Garfi eld

ACROSS DOWN Bound And Gagged 1. Say no more and don’t look so sur- 2. Be told to catch up and cheer up (7) prised! (4,4,5) 3. When we went in, he was dragged off (3) 8. Say, besides, that being in a valley 4. Admits to possession of? (4) does make one happy (7) 5. An idea of where the badly driven golf ball has got 9. New - to the dock? (7) to? (5,5) 11. Says it’s great once the slot is cut (6) 6. Has to break the promises (5) 13. Whip, perhaps, when it’s dropping 7. Following this, his being off sick (7) back in the race (8) 8. For many, a very good pain-killer (5,6) 15. The doctrine of men in building (5) 10. Concluded one had a reason for getting the gun 16. Getting used to it, one turns round out (4,2,2,3) (7) 12. Dead right: it’s more recent (5) 18. Jams and one gets it off with dif- 14. Don’t leave with (10) ficulty (7) 17. Is the name inscribed in the clubs? (5) 19. Worked with Ted in entertainment (5) 18. To say nothing about the financial gain I find 21. Are not so full a description of the beastly (7) hats (8) 20. It’s ruched, with a frilly lace border, and not stiff 23. Wobbling for a moment (6) (7) 25. Give out again when the sire gets a 22. Figure the new variety of rose is a non prize change of name (7) winner (5) 26. Guided one new driver into the 24. Start with nothing, having gone to prison (4) wrong depot (7) 27. You wouldn’t believe what people do on a psy- 28. Yes! It means a wrongdoer’s been let chiatrist’s couch! (3) off lightly! (5,8)

Weekly’s Solutions

ACROSS: 1 Took after 8 Outrage 9 Patient DOWN: 1 Topping 2 Outcast 3 Arena 4 Tit- 10 Spaniel 13 In a panic 14 Rate 16 Go to mice 5 Rows 6 Grin 7 Declaim 11 Persia 12 pieces 20 Adam 22 Here 24 Paid a visit 28 Iced 15 Taxi 17 One 18 Open 19 Impart 21 Ali Anna 29 Flagrant 31 Honesty 34 Measure 22 Hashish 23 Rain 25 Dilemma 26 Stature 35 Shallow 36 St. Andrews. 27 Totters 30 Grand 32 Ella 33 Yews.

Gulf Times 6 Saturday, August 5, 2017 BUSINESS

CORPORATE RESULTS Toyota first quarter net profit jumps 11% to $5.6bn

to $14.8bn to $15.0bn from $14.52 to $14.72bn. Normalised net €1.4tn. That figure was just €3.0bn higher than in the first quarter, income rose to $422mn, or 87 cents per share, in the second as the weaker dollar shrank the value of the portfolio in euro quarter ended June 30, from $349.2mn, or 78 cents per share, a terms. Operating, or underlying profit from asset management year earlier. Core sales rose 2.5% to $4.05bn. alone gained 16.8% to reach €584mn across the whole group. Swiss Re Allianz had announced last week that net profits grew 83.4% between April and June, to €2.0bn. Reinsurer Swiss Re said yesterday that Cyclone Debbie which Operating profit added 23% to reach €2.9bn, on the back of reve- struck Australia in late March lashed its bottom line in the first nues up 2.0% at €30bn. Both the property and casualty insurance half of this year, with price competition also leading to a drop in and the life and health insurance arms boosted their underlying premiums. profits, with lower claims helping property and casualty to 28% Net profits fell by more than a third, or 35% to $1.2bn (€1.0bn). growth. Meanwhile revenue slid 5% to $21.2bn as the premiums it received Itochu for providing insurance coverage fell by 8% given stiff market competition pushing down prices. Japanese trading company Itochu Corp said yesterday its first- Chief executive Christian Mumenthaler called the first half profit quarter net profit rose 48% to a record level, citing higher coal “a solid result despite the challenging market environment and and iron ore prices and healthy earnings from food businesses. having paid significant claims in the aftermath of natural catas- Itochu, Japan’s third-biggest trading house by assets, said net trophes.” However analysts surveyed by the Swiss financial news profit for April-June was ¥108.2bn ($983mn), up from ¥73.1bn in agency AWP had been expecting a net profit of $1.3bn. the same period a year earlier. “The result is below expectations and modest overall, with the “We were off to a fairly good start,” chief financial off icer (CFO) soft market leaving its mark on” the property and casualty rein- Tsuyoshi Hachimura told a news conference. surance segment said Vontobel bank analyst Stefan Schuermann “Our mid- and small-sized units have made solid profits. Plus, we said in a market commentary. were able to benefit from higher resource prices.” Rosneft Non-resource business segments such as food, textile and machinery each reported growth of over 20%, while its metals Russia’s largest oil producer Rosneft reported an 11.1% year on profit jumped by 2-1/2 times. “Profits from our units whose annual year rise in second quarter crude oil output yesterday but is stick- earnings come below ¥2bn ($18mn) account for 75% of our group ing to Russia’s pledge to curb production. profit, underlining low vulnerability to economic or commodity Toyota said yesterday its fiscal first quarter net profit jumped 11% Cigna echoed comments about late-year individual insurance Russia and other global producers have agreed to cut output by downturns,” Hachimura said. to $5.6bn with vehicle sales up in Japan and the United States, spending from Aetna executives, who said customers uncertain 1.8mn barrels per day until March 2018, but production levels are Royal Bank of Scotland while it also lifted its annual earnings forecast. about the availability of coverage in 2018 might use medical serv- higher than they were last year. The Corolla and Prius hybrid maker posted a net profit of ¥613bn ices more often later this year than they otherwise would. Compared to the first quarter, its average production fell by Royal Bank of Scotland beat first-half profit forecasts yesterday ($5.6bn) in the three months to June as revenue rose 7.0% to Cigna plans to off er individual coverage in 2017 under Obamacare 1.2% to 4.57mn barrels per day, it said, citing “the limitations on in a sign its long-promised recovery is finally gathering pace, ¥7.05tn. but is waiting for a final look at federal policy in September Russian oil producers related to the agreements with the Opec and said it may move up to around 150 jobs to Amsterdam after Quarterly operating profit, however, fell nearly 11% to ¥574.3bn, before making an ultimate decision, chief executive off icer David countries”. Prices also slipped from the first quarter. “In the sec- Brexit. The state-controlled bank’s shares rose as much as 5% partly owing to currency fluctuations, it said. Cordani said on CNBC yesterday. ond quarter of 2017, the average crude oil price declined by 9.2% after it reported an unexpected 44% jump in income at NatWest Toyota, which lost its crown as the world’s top-selling automaker “It is a challenging market as we look at 2017 and as we look to in roubles terms, having a considerable negative impact on key Markets, the rebranded investment banking unit that brought it in 2016, now expects profit for the year to March 2018 to come 2018,” Cordani said. Cigna’s net income rose to $813mn, or $3.15 financials,” chief executive off icer Igor Sechin said in a statement. to the brink of collapse during the financial crisis. in at ¥1.75tn, up from an earlier ¥1.5tn forecast, as it forecasted a per share, in the second quarter from $510mn, or $1.97 per share, Net profit of 68bn roubles ($1.13bn) beat the 63bn expected by RBS, rescued in a record £45.5bn ($59.8bn) bailout at the height downturn in the yen. a year earlier. analysts but was down from 89bn a year earlier. of that crisis, has not made an annual profit since 2007 and last Vehicle sales were 2.59mn units in the quarter, slightly up from CBOE Holdings Allianz made a first-half profit in 2014. 2.52mn units a year ago. “We are doing what we said we would, growing income, reducing Demand rose in North America, Europe, Central and South CBOE Holdings, the operator of the largest US options exchange, German insurer Allianz yesterday reported a big jump in net profit costs and improving returns,” chief executive Ross McEwan told America, Africa and the Middle East. Sales also rose in Toyota’s reported a quarterly profit that narrowly beat analysts’ estimates in the second quarter, as revitalised asset-management activities reporters on a conference call. home market, Japan, but they fell in the rest of Asia. as its acquisition of Bats Global Markets helped drive transaction boosted its result. US asset management subsidiary Pimco was a RBS also said it was in talks with the Dutch central bank to use a The auto giant last year suff ered its first drop in annual profit in fees. Transaction fees surged more than threefold to $453.9mn in major contributor to a €55bn ($65bn) increase in funds managed licence it has in the Netherlands to conduct some Natwest Mar- five years, as it pointed to the cost of customer incentives in the the second quarter ended June 30, with Bats contributing 25%. by the firm between April and June. kets business there if it becomes necessary following Britain’s exit key US market. CBOE agreed to buy Bats for $3.2bn last year. “We remain In a sign of recovery from a slump following the departure of from the European Union. The unit currently has just a handful of Quarterly operating profit in the North American market tumbled intensely focused on realising the benefits of the Bats acquisition founding chief executive Bill Gross in 2014, Pimco accounted for staff but plans to employ a total of around 150, McEwan said. by nearly half from a year ago owing to those marketing costs, and are pleased with the success of our integration to date,” chief some 33bn euros of net new funds in the firm’s coff ers, 19bn of In common with British-based rivals such as Barclays and HSBC, which can include low-interest financing, cash-back rebates and executive Edward Tilly said. them from a single client. “Pimco has become a performance en- RBS has undergone a multi-year programme of restructuring other perks. “Toyota is facing tough competition in the North However, operating expenses more than doubled to $149.1mn due gine again,” finance director Dieter Wemmer said in a statement. including shedding billions of pounds worth of assets worldwide American market due to a delay in its shift to pickups and SUVs,” partly to higher compensation-related costs. In total, third-party funds under management at Allianz reached since the 2008 financial crisis. Satoru Takada, an analyst at Tokyo-based research and consult- Chicago-based CBOE’s net income allocated to common ing firm TIW, told AFP ahead of the earnings. shareholders rose to $67.3mn, or 60 cents per share, in the latest US auto sales have been sputtering, forcing automakers to boost quarter from $50.7mn, or 62 cents per share, a year earlier. incentives to land customers. Excluding items, CBOE earned 87 cents per share, while analysts “Foreign exchange is a key factor for the industry,” Takada added. were expecting 86 cents, according to Thomson Reuters I/B/E/S. “Current levels are relatively positive for the Japanese auto Revenue jumped more than threefold to $640.8mn, while total industry.” options average daily volume rose 15% to 7.03bn contracts. Cigna Corp EPBiH Cigna Corp reported a higher-than-expected second-quarter Bosnia’s biggest power utility EPBiH posted a loss of 22.8mn Bos- profit yesterday due to a decline in medical costs, underscoring nian marka ($13.8mn) in the first half of the year, compared with a an industrywide trend reported by rival health insurers including 3.7mn marka net profit a year earlier, hit by a drop in hydropower Aetna and Anthem. output. Uncertainty about spending in the second half of the year by Revenues amounted to 568.2mn marka, up 20% from a year ago, individual insurance members, including those in the Obamacare but spending rose to 598.4mn marka from 462.3mn. programme, held the company back from lowering its 2017 cost A harsh winter and low water levels for most of the period were expectations further, executives said during a conference call. the main factors behind the worsening result, a spokeswoman Cigna has 336,000 members in individual insurance, a sector told Reuters, explaining EPBiH was forced to produce more power that was overhauled after the Aff ordable Care Act was passed in from costly coal-power generators to make up for the hydro 2010 with new minimum healthcare benefits and income-based shortfall. An opening of the market to competitors has also forced subsidies. EPBiH to lower prices to some consumers, she added. The company focuses on large and medium-sized corporate EPBiH, 90% state-owned and the biggest of Bosnia’s three power healthcare and sells international insurance as well as govern- utilities, runs two coal-fired power plants and three hydropower ment-backed Medicare plans. plants with combined capacities of 1,165 megawatts (MW) and Future funding for former president Barack Obama’s signature 517MW, respectively. healthcare law, often called Obamacare, is up in the air after Newell Brands Republican leaders’ attempt to repeal and replace it failed in the US Senate last week and barely passed the House of Representa- Newell Brands, the maker of Sharpie pens, reported a 21% jump tives in May. Now there are some bipartisan eff orts in both houses in quarterly normalised profit yesterday, helped by strong de- of Congress to stabilise healthcare markets, but it is unclear how mand for Rubbermaid food containers, and baby and parenting far these will advance. products. The company also raised its full-year sales forecast Gulf Times Saturday, August 5, 2017 7 BUSINESS

Emerging equities remain bullish

Reuters and China, with President London Donald Trump preparing an investigation into China’s intellectual property and trade Emerging stocks headed practices. yesterday for a fourth straight Chinese mainland shares fell week of gains as the dollar 0.5% and ended the week near 16-month lows offset a down, although Shanghai- slide in US technology shares listed stocks eked out a small and a threat by Washington weekly gain. to investigate Chinese trade The yuan also remained on and intellectual property course for its fourth straight practices. week of gains. Russian stock markets stayed China’s central bank is under pressure after a fresh reportedly considering set of sanctions were slapped a widening of the yuan’s on Russia by the United trading band after a major States. Communist party meeting this The rouble was set for a third year, a largely cosmetic move week of falls against the dollar that would burnish its reform and sovereign dollar bonds’ credentials as official policy yield premium to Treasuries at focuses on reducing debt. the highest in 2-1/2 years. Russian stocks fell 0.5% but But dollar weakness has were set to end the week in the kept emerging markets aloft, black. shrugging off geopolitical risks Demir said the latest sanctions and fresh falls for US tech shares bill did not impose very onerous that filtered through to Asian new sanctions on Moscow. names such as Samsung and “The macroeconomic impact or put Korean stocks on track for a the balance of payments growth Traders work at the Hong Kong Stock Exchange. A peek under the hood of the Hang Seng Index’s 25% surge shows it’s being dominated by larger equities, with smaller second week of falls. impact from the sanctions will companies trading at their biggest price discount to the big caps since 2009. MSCI’s emerging equity index remain limited,” he said. rose 0.3% on the day and The Czech crown was trading most currencies firmed versus just off the new 3-1/2 year highs the greenback, with the rand hit against the euro after the jumping half a per cent off previous day’s rate rise, the first three-week lows. since 2008. Nomura economist Inan Demir In bond news, Iraq’s new 2023 said US jobs data could show if bond, issued at par, was bid wage pressures were rising or at 100.4 cents, according to Short seller threat has not, determining whether the Tradeweb. US Federal Reserve would hike Venezuelan bonds were marked rates again in the last quarter lower ahead of the inauguration of 2017. of a legislative superbody, “If wage pressures remain which is seen giving President sluggish, the next rate hike Nicola Maduro sweeping new will be pushed even further powers. Hong Kong share rally off and that will be positive for The benchmark 2037 issue from emerging market sentiment,” state oil firm PDVSA fell almost Demir said. one cent. Investors are also monitoring The bolivar currency’s black the potential for a trade war market rate tumbled 18% versus skipping small caps between the United States the dollar on Thursday.

Bloomberg dividend yields and can be more trans- backed funds, known as the ‘national day, snapping a three-day rally. The Hong Kong parent. “Investors are avoiding small caps team,’ have fuelled big-cap gains, Che- Hang Seng Small Cap Index lost 0.3%. due to concerns about short selling – it ung said. Linus Yip, chief strategist at First seems that short sellers are increasingly But it’s been mainland investors which Shanghai Securities in Hong Kong, isn’t ong Kong stocks may be Asia’s interested in small caps in Hong Kong.” have propelled the wider Hang Seng’s writing the little guys off . He says some star performers this year, but it Short sellers have taken on at least four outperformance this year, as stricter have been “oversold” and could rebound Hhasn’t done much to revive the Hong Kong-listed companies this year, capital controls make the stock connects on a trigger like better-than-expected fortunes of the market’s perennial un- among them snack maker Dali Foods between Shanghai, Shenzhen and Hong results. derdogs: small-cap shares. Group Co and furniture company Man Kong one of the only ways those onshore Hang Seng small caps trade at a A peek under the hood of the Hang Wah Holdings, a target of well-known can get their money into foreign cur- median of 10.5 times projected earn- Seng Index’s 25% surge shows it’s be- short-seller Carson Block. rency. ings, according to data compiled by ing dominated by larger equities, with According to Hong, there were only Net fl ows in to Hong Kong via the links Bloomberg, versus a valuation of 14.4 smaller companies trading at their big- about two short targets a year in Hong have come in at more than 240bn yuan for the large-cap gauge and 26 for the gest price discount to the big caps since Kong before 2014, when the numbers ($36bn) this year, versus 131bn yuan for Shenzhen Composite Index, which 2009. started to pick up. the same period of 2016, when the Shen- tracks a lot of mainland-listed smaller That’s despite expectations a trading Small-cap shares also bore the brunt zhen connect didn’t exist. shares. link between Hong Kong and Shenzhen of a selloff in June, when concern over While onshore cash is still fl ocking to But with shorting activity “hurting set up in December would lure mainland cross-shareholdings infl ating their valu- Hong Kong, small caps aren’t the attrac- sentiment” around small caps, the bigger money into the former British colony’s ations spurred a cascade of losses in a tion. Of the top 10 stocks in which main- stocks will remain in favour, says Cath- smaller shares. group of stocks. land investors hold the highest stakes erine Yeung, an investment director at For Hao Hong, the Bocom Interna- “Fears about increased short-selling via the Shanghai and Shenzhen trading Fidelity International, which oversees tional Holdings Co strategist who called activities around small caps in Hong links, only two – Guangzhou Baiyunshan about $279bn. Like Hong, she makes a China’s boom-and-bust equity cycle in Kong are defi nitely part of the reason for Pharmaceutical Holdings Co and China link to the economy. 2015, the lack of appetite for small caps investors avoiding small caps this year,” Molybdenum Co – are members of the “It’s about names that can provide comes down to two things: the economy said Francis Cheung, head of China- Hang Seng small cap gauge. earnings visibility,” she said. “We are and short sellers. Hong Kong strategy at CLSA. That’s seen the Hang Seng Large Cap in this part of a cycle where large caps “In a slowing environment, big caps Conversely, money coming in to the Index post triple the gains of its small- are getting the attention as investors tend to outperform,” he said, adding that market via exchange-traded funds and cap counterpart in 2017. are still a little bit sceptical about eco- they’re more liquid, often have higher support from China’s government- The big-cap gauge fell 0.6% on Thurs- nomic recovery.”

Sensex up; rupee strengthens

Agencies to bring them down,” said Andrew Holland, Asian markets show mixed trend Mumbai chief executive off icer at Avendus Capital in Mumbai. “We are waiting for the bubble to burst and the markets will be range- AFP A surge in consumer durables and oil and bound till that happens.” Hong Kong gas stocks yesterday saved the day for the India’s key gauges are the best perform- Sensex, which closed up at 32,325 points, ers this year among the major Asian mar- reversing its two-day slide. kets after the Hang Seng Index. They have he beleaguered dollar struggled Investors liquidating short positions, only twice dropped more than 1% in a day to recover from a fresh slump coupled with a firm trend in Europe, sup- in 2017. Here are the latest updates Tyesterday triggered by a report ported the late recovery, helping erase the Meanwhile the rupee closed fresh two- on the probe into alleged Russian in- initial losses. year high against the US dollar before the terference in the US election. The 30-share index started on a bearish US payrolls data. According to a Bloomberg The greenback was under sustained note, but late buying helped it settle up report, payroll data may provide the next pressure against the Japanese yen, 87.53 points, or 0.27%, at 32,325.41. The inflection point, as traders look for clues testing 110 in afternoon forex trade, gauge had lost 337 points in the previous on the strength of the world’s largest as it also fell against the euro with soft two days. economy and the US Federal Reserve’s US economic data adding to negative The NSE Nifty was above the 10,000 mark next policy move. sentiment. at the close at 10,066.40, up 52.75 points – or The rupee ended at 63.58 a dollar – a Analysts warned it could go lower 0.53% – after hitting a high of 10,075.25. On level last seen on July 21, 2015, up 0.17% still with US wages data unlikely to a weekly basis, the BSE managed to sign off from its Thursday’s close of 63.69. The ru- off er much relief. with gains for the fifth straight week by rising pee opened at 63.67 a dollar and touched The emboldened yen, seen as a safe 15.53 points, or 0.04%. NSE too ended up a high and a low of 63.58 and 63.73 haven currency, dragged down the 51.90 points, or 0.51%. respectively. Nikkei, which closed 0.4% lower. Drugmakers, including Sun Pharmaceu- On weekly basis, rupee rose nearly 1%, Toyota announced upward revi- tical Industries and Dr Reddy’s Laborato- its biggest weekly jump since March 2017. sions in full-year profi t as it forecast ries, dropped the most on the Sensex and Gains in the rupee was also supported by a downturn in the yen. Pedestrians walk past a share prices board in Tokyo. The Nikkei 225 closed down 0.4% to 19,952.33 points yesterday. the Nifty, after Teva Pharmaceutical Indus- continued inflows by the foreign institu- Shanghai drifted lower by the close tries, the world’s biggest maker of generic tional investors in the local equity and of play as Chinese stocks lost mo- ments — sparked a furious reaction Traders were awaiting a key US jobs the American services sector slowed medicines, slashed its profit forecast for the bond markets on the political and eco- mentum after a record 2017 close on from President Donald Trump and report that may provide clues on the sharply in July, shaking confi dence in second time this year amid an acceleration nomic stability and on the hopes of more Tuesday, while Hong Kong edged dented gains on Wall Street. strength of the world’s top economy payroll data. in price erosion and delays in US product reforms by the government. higher. “In no small way this yen strength and the odds of an additional Federal The euro, which had moved above approvals. So far this year, the rupee has gained Sydney stocks declined as the is related to news that broke overnight Reserve rate hike this year. $1.19 on Wednesday for the fi rst time In the Sensex chart, Hero MotoCorp 6.8%, while foreign institutional investors central bank cut its growth forecast that Robert Mueller has empanelled a But Chris Weston, Australia-based since January 2015, was up against the blazed a trail, gaining the most by 3.11% (FIIs) bought $8.85bn and $18.25bn in and expressed concern over the local grand jury as he continues to look into chief market strategist at IG Markets, greenback yesterday at $1.1883. on the back of encouraging earnings equity and debt markets, respectively. dollar’s strength, but Seoul clawed the Russia issue — as the president cautioned the fi gures were unlikely to The ailing US currency failed to numbers. The 10-year bond yield closed at 6.441%, back some losses endured Thurs- called it,” said Greg McKenna, chief bolster the dollar. bolster oil prices, which declined Coal India jumped 3.04% and Tata Steel compared to its previous close of 6.43%. day after President Moon Jae-in market strategist AxiTrader. “It’s all about wages here, and... sharply on concerns American shale 2.85%. Consumer durables hit it big, with Bond yields and prices move in opposite announced plans to raise corporate Stephen Innes, who heads Asia- specifi cally, if we can see more than producers are ramping up production a rise of 4.21%, followed by oil and gas directions. Asian currencies were trading taxes. Pacifi c trade at forex fi rm OANDA, a 30 basis points increase of wages despite the persistent supply glut. and metal. Healthcare was not as lucky, higher. South Korean won was up 0.3%, The revelation by the Wall Street noted: “Another toxic elixir for the (month-on-month) then perhaps, In Tokyo, the Nikkei 225 closed plunging 0.94%. Pharma shares such as Dr Philippines peso 0.18%, Taiwan dollar 0.14%, Journal that special counsel Robert greenback is brewing.” just perhaps, the USD can fi nd some down 0.4% at 19,952.33 points; Hong Reddy’s, Sun Pharma and Lupin fell by up China off shore 0.1%, Singapore dollar Mueller has convened a grand jury The turmoil in Washington is cast- love,” he said. “It would be a big sur- Kong — Hang Seng ended up 0.1% to 3.76%. “The markets are overvalued and 0.06% and Thai baht 0.05%. However, to investigate Russia’s interference ing doubt on Trump’s ability to push prise though.” at 27,562.68 points and Shanghai something from the left field will happen Japanese yen was down 0.08%. in the 2016 presidential election — a through an agenda aimed at boosting The dollar was also under pres- — Composite fell 0.3% at 3,262.08 step towards possible criminal indict- growth. sure as a survey showed growth in points yesterday. Saturday, August 5, 2017 GULF TIMES BUSINESS

QSE WEEKLY REVIEW Local and non-Qatari individual investors turn bullish

By Santhosh V Perumal in the first six months of this year. banks and financial services (17%), International Services (GIS) report Non-Qatari individual investors transactions by 25% to 2,586. The Business Reporter Domestic institutions however turned industrials (11%), consumer goods QR15.8mn net profit in H1 2017. were also net buyers to the extent insurance sector reported 56% net profit takers this week which saw (4%), transport (3%) and insurance Market capitalisation stood at of QR26.34mn against net sellers of expansion in trade volume to 0.81mn Aamal Company report a net profit of (2%) this week which saw Qatar Oman QR509.09bn this week which also saw QR4.08mn a week ago. shares, 46% in value to QR45.62mn Local and non-Qatari individual QR266.6mn in the first half (H1) of this Investment register H1 2017 net profit of Milaha report a net profit of QR267mn However, domestic institutions turned and 59% in deals to 587. investors turned bullish amidst decline year. QR10.55mn. in January-June 2017. net sellers to the tune of QR110.83mn However, the transport sector’s trade in the Qatar Stock Exchange (QSE) this Buying was seen within micro-cap The banks and financial services’ Major movers included Vodafone compared with net buyers of volume plummeted 49% to 1.44mn week. scrips in the QSE this week which saw share in total trade turnover was 29%, Qatar, Ahli Bank, Qatar National QR53.64mn the previous week. equities, value by 47% to QR39.37mn Realty and telecom counters Qatar’s foreign trade surplus expanded telecom (20%), consumer goods (16%), Cement, Qatar Industrial Non-Qatari institutions’ net buying and transactions by 36% to 1,154. witnessed some demand this week 63.6% year-on-year to QR12.51bn in industrials (15%), real estate (12%), Manufacturing, Alijarah Holding, weakened considerably to QR13.58mn The market witnessed 22% shrinkage which saw the QSE disclose the June, mainly on higher exports of insurance (4%) and transport (3%) Mesaieed Petrochemical Holding, against QR35.36mn the week ended in the consumer goods sector’s trade opening of more than 50 foreign petroleum gases and lower imports. this week which saw Barwa award Barwa, Zad Holding, Widam Food, Al July 27. volume to 1.77mn stocks, 19% in value investment portfolios, indicating the Islamic stocks were seen declining QR139.95mn worth contracts to Qatar Meera, Commercial Bank and Islamic Total trade volume rose 33% to to QR186.95mn and 34% in deals to growing appetite of international fund slower than the main index this week Building Engineering Company for Holding Group this week. 49.86mn shares and value by 6% to 1,604. houses to invest in the fastest growing which witnessed no trading of treasury the construction of warehouses and Nevertheless, GIS, QNB, Doha Bank, QR1.17bn, while transactions were down The industrials sector’s trade volume economy amidst the continued bills and sovereign bonds. workshops. Masraf Al Rayan, Dlala, Industries Qatar, 2% to 15,515 this week. tanked 20% to 5.3mn shares and economic blockade. Overall trade turnover and volumes Opening weak at 9,470 points, the Mazaya Qatar, Milaha, Nakilat, Salam There was 98% surge in the telecom value by 19% to QR176.05mn, whereas Foreign institutions continued to be were on the rise this week, which market continued with its weak run International Investment and Qatari sector’s trade volume to 23.19mn transactions rose 2% to 3,020. net buyers albeit with lesser intensity saw telecom, real estate and banking for the next two days to touch a low Investors Group were among the losers. equities, 73% in value to QR239.01mn The banks and financial services as the 20-stock Qatar Index shed 1.73% sectors together accounted for more of 9,309 points, after which there Local retail investors turned net buyers and 24% in deals to 1,801. sector saw 2% fall in trade volume to this week which saw the bourse’s banks than 81% of the volumes. was consistent gains for the next two to the tune of QR70mn compared with The real estate sector’s trade volume 8.45mn equities but on 4% jump in and financial services sector report The telecom sector accounted for days but overall the index settled net sellers of QR85.15mn the week soared 77% to 8.89mn stocks, value to QR337.81mn and 1% in deals a cumulative net profit of QR10.8bn 47% of the total volume, realty (18%), lower this week which witnessed Gulf ended July 27. value by 68% to QR145.69mn and to 4,763.

Interest rates may go up Weak dollar a green light further, says BoE offi cial Reuters scale of rate hikes over the next London three years. “We do think the economy will continue to grow. We think wage growth will Bank of England policy- pick up,” he told BBC radio. “I for global equities rally maker sought yesterday think there may be some possi- Ato drive home its message bility for interest rates to go up a Reuters that interest rates are likely to little bit.” London rise, a day after investors took its He also sought to dispel con- shift to a more downbeat view of cerns that a return to slightly the economy as a sign that it was higher borrowing costs could ar from indicating the US economy in no hurry to move. hurt Britain’s economy. is struggling or the “Trump dis- Sterling suff ered its biggest “One shouldn’t overdo the Fcount” unravelling, the weak dollar daily fall in a month on Thurs- signifi cance of this,” Broadbent may be a sign that arguably the most be- day and fell further yesterday said. “If and when it happens, nign investment conditions for a decade despite deputy governor Ben there will be a lot of talk about are likely to persist a while longer. Broadbent’s comments, illus- the fi rst rate rise since ‘x’. But it’s US stock markets are at record highs, trating the diffi culty the bank just a rate rise and we got per- with the S&P 500 index up a solid 10% faces in trying manage expecta- fectly used to rate rises of this this year, and measures of volatility have tions about when it might raise size in the past.” never been lower. rates for the fi rst time in more But sterling-averse investors At the same time, the dollar is down than 10 years. appeared to ignore the message 10% this year and at 15-month lows Infl ation is likely to remain on rates — which the Bank has against a basket of major currencies. above the central bank’s 2% tar- given before — and focused more With the dollar as the world’s main get for the next three years and on the cut in its forecasts for funding currency, investors had wor- unemployment is at its lowest economic growth and wages. ried until recently that the twin forces of level since the 1970s. Fathom Consulting said the US interest rate hikes and a strengthen- On the other hand, the pros- Bank “tried to have its cake and ing dollar would derail the rally in global pect of Brexit is weighing on eat it” as it voted to keep rates stocks. investment by companies and on hold once again and told in- Before this year’s drop, the dollar had consumers are struggling with vestors they were not pricing in posted its best three-year rolling per- weak wage growth. enough future rate hikes. formance against its currency basket in Broadbent took to the air- “Markets have grown wise more than three decades. waves on Friday to talk about to these siren voices and have A stronger dollar indicates tightening the prospect of rates going up, a ignored the Bank’s message,” global fi nancial conditions. day after the BoE said investors Fathom economist Joanna Conversely, as Morgan Stanley says in could be underestimating the Davies said. a note, a 2% dollar decline is equivalent to a 25 basis point cut in the US federal funds rate in terms of impact on fi nancial StanChart sees Brexit relocation will cost $20mn conditions. The greenback’s 8% fall since April has Standard Chartered will need to activate the subsidiary, so let’s also coincided with a decline in expecta- spend around $20mn making say March 2019 and that amount tions of US rate increases fuelling an ex- Frankfurt its European base in is purely dependent on Bafin tended rally in global stock markets. Far from indicating the US economy is struggling or the ‘Trump discount’ unravelling, the weak dollar may be a order to secure market access to (Germany’s banking regulator), This week, the blue-chip Down Jones sign that arguably the most benign investment conditions for a decade are likely to persist a while longer the European Union when Britain but would probably be in the Industrial Average scaled a peak of leaves the bloc, chief executive hundreds of millions.” 22,000 for the fi rst time. port published last week said the dollar foreign currency exposure while buying relatively heavy speculative euro bets by Bill Winters told Reuters. Standard Chartered currently While doubts about US President remained overvalued by more than 10 assets. hedge funds, large institutional players Global banks have started has around 100 staff in Frankfurt Donald Trump’s longevity in the White to 20% based on US economic funda- Though those fl ows have declined such as central banks and pension funds enacting contingency plans to en- and has off ice space capacity to House or his ability to pass key reforms mentals. JPMorgan’s index tracking the from their highs, fund managers remain remain underweight the euro and related sure they can still serve EU clients add another 20. have also been cited as headwinds, there dollar’s valuation against an infl ation- bullish about the single currency’s out- assets, suggesting they could increase after Britain leaves in March 2019 “One question is where can is a growing belief that the dollar is re- adjusted basket of its peers was still near look, linking it to an improving economy exposure to the single currency. and the cost of those plans has people sit after Brexit?” Winters in fl ecting the rude, infl ation-less health of its long term median. and the prospect of pro-growth reforms. But some say the dollar’s decline has begun to emerge. an interview with Reuters. an expanding world economy. The latest leg of the dollar’s drop also “A bet on the euro is a bet about French gone too far, with robust profi t growth at Emerging markets-focused “It would be costly to physically “Asset markets and the dollar are react- comes as the economic outlook beyond labour reforms rather than any per- US companies and likely strong jobs data lender Standard Chartered said in move all your people who deal ing to the same thing which is a Goldilocks the United States has brightened con- ceived ECB hawkishness and if that goes to provide the impetus for the Fed to start May that it was in talks with regu- with a European client. (not too hot, not too cold) period for the siderably, particularly in the eurozone, through, EUR/USD can go above 1.20,” tightening policy quicker than markets lators about making Frankfurt its Basic sales staff and relation- global economy along with a cautious Fed encouraging investors to bet on further said James Kwok, head of currency man- are pricing in. European base, where it already ship managers are already in situ that will continue,” said Kamal Sharma, weakness in the US currency. agement at Amundi Asset Management Some expect a US rate increase in Sep- has a branch from which it con- across the continent.” a director of G10 FX strategy at Bank of Derek Halpenny, head of European in London. tember, even though futures markets put ducts euro clearing activities. HSBC said this week it could America Merrill Lynch in London. global markets research at MUFG in Lon- In another sign of growing risk appe- the probability of no change at 97.5%. “It will cost us $20mn prob- spend up to $300mn moving up Investors say the dollar’s decline has don, said the ratio of unhedged to hedged tite, emerging market equities have seen Richard Falkenhall, a senior FX strate- ably,” Winters said of the as- to 1,000 jobs and parts of its busi- further to run as it remains broadly un- passive infl ows into European equities 20 consecutive weeks of infl ows while gist at SEB in Stockholm, who shares this sociated costs of converting that ness to Paris following Britain’s dervalued and that this may fuel further has surged since the French presidential debt funds have seen 27 straight weeks contrarian view, said relative monetary branch to a subsidiary. exit from the European Union, as gains in asset markets. and parliamentary elections, indicating of infl ows, according to Bank of America policy trends have been a key driver for “Capital won’t go in until you well as associated legal fees. An International Monetary Fund re- investors are more comfortable in taking Merrill Lynch fl ow estimates. Despite the currency behaviour since 2012. US stock options hedging picks up in the midst of record calm

Reuters ever, according to data provider Trade ital, in Connecticut. “The longest low Morgan Stanley strategist Chris Metli New York Alert. Call options convey the right to volatility runs have been almost two recently wrote clients. buy the underlying security at a fi xed years in length. While VIX futures are a relatively price in the future, while put options So this low VIX environment could small market when compared to the ven as US stocks remain near convey the opposite right. potentially last another year.” S&P 500 Index, it is possible that in- highs and daily gyrations for VIX calls, which appreciate in value VIX RISK Still, should volatil- creased buying of VIX futures at a time Estock prices are the most sub- when stock market volatility spikes, ity spike suddenly, positioning in when markets are already stressed dued in more than half a century, some are used to profi t from a pick-up in VIX-linked exchange traded products could have a knock-on eff ect on the options-based measures point to in- volatility. (ETPs) could further roil markets, S&P options and the benchmark index vestors positioning for increased vola- Options positioning for the S&P 500 strategists warn. itself, Typhon’s Thompson said. tility. Index and its tracking exchange-traded While the VIX, being an index, is “Depending on who you talk to, in The CBOE Volatility Index, better fund, show a similar concentration in not tradable in itself, the launch of that extreme scenario there could be a known as the VIX and the most widely positions benefi ting from falling stock VIX futures in 2004, VIX options in feedback loop.” followed barometer of expected near- prices, but are not as pronounced. 2006 and the roll-out of sophisticated Additionally, for inverse ETPs, term stock market volatility, recently “If you time it right and pick the ETPs starting in 2009, provided inves- which fall when the VIX rises, a one- fell to an all-time low of 8.84. right strikes you will make more mon- tors the fi rst opportunity to trade pure day drop of more than 80% might trig- While the low implies little fear of ey betting on a VIX rise than on an S&P volatility. ger unwinding of the products by the volatility pop in the S&P 500 Index, fall,” said Matt Thompson co-head of These ETPs now command roughly issuers. VIX options positioning says diff er- Volatility Group at Typhon Capital, in Traders work on the floor of the New York Stock Exchange. Even as US stocks $4bn in assets under management. “People are concerned that the in- ently. “There’s been a lot more interest Chicago. remain near highs and daily gyrations for stock prices are the most subdued in On a daily basis, these products re- verse products might cease to exist,” in hedging with VIX options for a vola- Increased interest in hedging with more than half a century, some options-based measures point to investors balance their exposure by buying VIX BAML’s Saksena said. tility spike in the past couple of weeks,” VIX options is a departure from the positioning for increased volatility. futures when they are rising and sell- Saksena stressed that in the current said Nitin Saksena, head of US equity recent trend where increasingly fl eet- ing VIX futures when they are falling. low volatility environment having a derivatives research at Bank of Amer- ing volatility spikes have left traders infl ation, the perception the Federal volatility can linger for longer. “Be very That amplifi es moves in both di- one day drop of more than 4% would ica Merrill Lynch. struggling to make money on their Reserve will rush in to rescue tanking careful when trading long volatility rections. A sudden and sharp drop in be tantamount to the kind of shock ex- The number of open call options VIX hedges. To be sure, positioning markets and investors’ tendency to because low volatility can last a long the S&P 500 at a time of low volatility perienced when the S&P 500 fell over on the VIX outnumber put options by for higher volatility is no guarantee treat every pullback as a buying oppor- time,” said Stephen Aniston, president presents a big risk for the overall mar- 20% on the “Black Monday” crash of nearly four-to-one, among the highest that will occur. Low interest rates and tunity still support the idea that low of investment adviser Black Peak Cap- ket, but especially in the VIX complex, October 19, 1987.