LOAN DEAL | Page 4 Pakistan set to fi nalise $12bn IMF bailout

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Woqod shareholders’ meet on March 25

Woqod will convene its extraordinary general assembly meeting on March 25 to approve some amendments to the company’s articles of association. “As the attendance percentage did not reach 75% of the share capital necessary for holding the first meeting of Nebras expands presence the extraordinary general assembly, it was decided to postpone the meeting to be held on the alternative date on March 25,” a Woqod spokesman said. in Jordan’s power sector US shale can beat ebras Power and Nebras Power In- vestment Management BV (NPIM) Saudi Arabia and pay Nhave entered into a sale and pur- chase agreement (SPA) to acquire the AES investors: Rystad Corporation’s (AES) interest in three Jorda- nian power projects together with Mitsui & Company. Bloomberg Nebras currently owns nearly 24% in each London of the three projects. Mitsui & Company currently owns a 40% interest in each of the three projects. US shale-oil companies are on track to add The closing of the acquisition is subject to production equivalent to Saudi Arabia’s output by obtaining approval from lenders to each of 2030, without needing the external financing the the project companies. industry’s boom has relied on so far, according Upon closing, NPIM will be a majority Rystad Energy AS. shareholder and will have operational con- “They are going to be very profitable, they are going trol on these plants, which have an aggregate to be able to return surprisingly good cash amounts capacity of more than 650MW representing to investors and still grow one Saudi Arabia,” said Per more than 14% of the current installed ca- Magnus Nysveen, senior partner at the Oslo-based pacity in Jordan. consultant. All power plants are located in Al-Mana- Although the shale revolution has helped American kher, 15km east of Amman. IPP1 Power Plant oil production more than double since the start of and IPP4 Power Plant started commercial the decade, its dependence on debt and equity to operations in August 2009 and July 2015 re- grow production volumes while offering limited spectively. returns to investors has raised doubts about its AM Solar Power Plant is expected to sustainability. reach its commercial operational date in That trend seems to be reaching a tipping point, July 2019. with drillers entering a new era of discipline in which On the occasion, Nebras chairman Fahad they’ve cut capital spending and launched share Hamad al-Mohannadi said, “This step is in buybacks. line with the vision of Nebras’ board of di- The frugality will continue during the shale industry’s rectors to place the company as a successful coming expansion, which will see it add about 1mn international company, and we are continu- bpd of production a year through to the end of the ing the development and investments with next decade, effectively creating a new Saudi Arabia, our international partners in power gen- according to Rystad. eration and water desalination projects re- “The financing party is over,” he said. But drillers gionally and globally. The expansion of our “have enough cash from the producing wells to investments in Jordan is a result of the trust finance quite a lot of capex, so they don’t need this and confi dence we have in the Jordanian en- financing any more.” ergy market and its regulations over the last Companies have been cash-flow neutral this year, few years.” and will be “very positive” in 2020, Nysveen said in Khalid Mohammed Jolo, CEO, Nebras an interview in London. Drillers learned to squeeze Power said, “Nebras started its invest- costs during the market downturn in the middle of ment activities in 2014, in continuation to this decade, slashing the oil-price needed to produce our current 4 investment in Jordan, we are a barrel by half to about $40, Rystad estimates. proud to enter in this transaction to support Al-Mohannadi (left) and Jolo: Branching out to become a successful international company. Despite the flood of American crude, oil markets these investments. This indicates the im- are unlikely to become oversupplied as demand portance of the Jordanian power market for pany’s long-term strategy to expand and able part of the electricity demands needed Kingdom of Jordan. With the addition of is healthy and output is declining at ageing fields us. The company continues its commitment strengthen its international presence and in the country.” Nebras Power chief busi- these projects, Nebras and its partners pro- around the world, said Nysveen. In fact, markets will to expand its investments with balanced expertise. This project is consistent with ness development offi cer Faisal Obaid al- vide over 700MW to the electricity grid of become “dangerously tight” as the growth in shale steps and diversifi cation in terms of geogra- our goals for development of infrastructure Siddiqi said, “We are pleased to enter into Jordan, contributing to the steady growth in output levels off toward the end of the next decade, phies and technologies. projects that support the development and this transaction which is an expression of energy demand and the stabilisation of the Nysveen predicts. “This step is in line with the com- economic growth through making avail- our strong partnership with the Hashemite energy sector in the country.”

Qatargas supplies commissioning LNG cargo to India’s Ennore terminal NEBI is seen strengthening growth

Owned by IndianOil LNG, Ennore is Qatar has established a strong India’s fifth operational LNG terminal partnership with India since July 1999 prospects across sectors in Qatar when Qatargas started supplying LNG to Petronet. Since then, it has delivered over Qatargas has supplied a commissioning 1,500 cargoes under its various long-term By Santhosh V Perumal with a combined economy of more gistics can bring about are positives liquefied natural gas (LNG) cargo for sales and purchase agreements as well Business Reporter than $2.1tn, as part of the strategy for the country’s macro economy India’s newest LNG receiving terminal, as supplying significant volumes into the to forge new alliances and connect and the banking sector,” the offi cial Ennore, near the southern Indian city of short-term/spot market. businesses. said. Chennai. India is a key market for Qatargas atar’s New Emerging Belt The new initiative has been ne- The link to the huge market is a The commissioning cargo was delivered given its geographical proximity and Initiative (NEBI), linking a cessitated by the unjust economic big opportunity for the domestic onboard the vessel ‘Golar Snow’ on growth potential. In addition to the Q$2.1tn economic bloc with blockade that was imposed on Doha businesses, which would require February 25 by the Swiss commodity Ennore Terminal, terminals located at Doha, is expected to lift the pros- since June 2017 by Saudi Arabia-led more support services (both fi nan- trader, Gunvor, to the state-owned Indian Mundra and Jaigarh are also due to pects across the sectors, particularly quartet. cial and non-fi nancial) and this in Oil Corporation (IOC), which owns and be commissioned in the near future trade and banking, and the economy It aims to position Qatar as the turn creates more allied businesses, operates the 5mn tonnes per annum as well as a host of other gas related as a whole. most promising hub for fi rms to set the banker said. (mtpa) terminal. Qatargas sold the cargo infrastructure projects. Terming NEBI as an excellent up to operate in and out of Qatar via Highlighting that total foreign free-on-board (FOB) basis to Gunvor. These additional terminals will increase strategy, the Qatar Free Zones Au- key strategic alliances. In the cur- direct investment from NEBI coun- The import facility - at Kamarajar port India’s capacity to import LNG from thority (QFZA) is of the view that rent geopolitical environment, Qa- tries was estimated at more than in Thiruvallur district at the outskirts 30mtpa to 44mtpa – a 46% increase beyond the alliance with natural tar can emerge as an alternative hub. Qatar is already an attractive $150bn in 2016; al-Jaida had said of Chennai - is owned by IndianOil LNG, as India continues to make strides in partners, Qatar should also reach “Our strategy will also include an international business hub, with “this economic initiative will bring a joint venture of IOC, private equity achieving its ambitious target of 15% gas out to the rest of the world. emphasis on new emerging mar- 20 business councils registered on us close to our regional partners, fund IDFC Alternatives and ICICI Bank, in the energy mix. “The inter-linkages between kets such as Kuwait, Oman, Tur- the QFC platform from countries and will connect our businesses, according to IndianOil LNG’s website. Since the first production in 1996, these countries are positive for key, Pakistan, India, as well as sev- around the world. which in turn, will increase the fl ow Ennore will be India’s fifth operational Qatargas has delivered cargos to 31 Qatar’s free zones as companies eral others,” Qatar Financial Center of FDI and create new opportunities LNG terminal and the first LNG terminal countries and also operates the Jetty themselves will lead to more com- Authority chief executive Yousuf of a bank said the initiative (NEBI) across all sectors.” on the East Coast of India. Once fully Boil-Off Gas facility, Al Khaleej Gas, two panies to enter Qatar. It is a win- Mohamed al-Jaida said, adding the could fi nd scope for increased trade Qatar is already an attractive in- commissioned, it will provide regasified Helium Plants, the two Laffan Refineries win,” QFZA chief executive told Gulf QFC is well positioned to serve as a fi nance and cross border funding. ternational business hub, with 20 LNG to anchor customers, including (among the largest condensate refineries Times recently. gateway to these lucrative and fast- “It will certainly help diversify business councils registered on Chennai Petroleum Corporation, Madras in the world), and the Ras Laffan NEBI is a new economic cor- growing economies. asset portfolio,” he said, adding “the the QFC’s platform from countries Fertilisers and Manali Petrochemicals. Terminal. ridor of Qatar focusing on Kuwait, Finding promising potential for force multipliers that inter- and around the world such as Canada, Oman, India, Pakistan and Turkey the fi nance sector, a senior offi cial intra-regional capital, trade and lo- Nigeria, Singapore, Spain, India. Gulf Times 2 Monday, March 4, 2019 BUSINESS

Bloomberg QuickTake Q&A JamalHow Trump’s Khashoggi’s view on shift Opec from may insider fuel US to antitrust exiled pushcritic

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Post The columnJustice on poverty, cholera and water scarcity to him.” His brother, Prince Khalid JamalFor almost Khashoggi, two decades, one of lawmakersSaudi Arabia’s in Washington the US, which made him a valuable leaving the kingdom for exileDepartment in the US said atSeptember the end of last18, 2017, year thathe wrote the about and rebuilding their country. The bin Salman, who’s the kingdom’s mosthave beenprominent pushing journalists, legislation hasn’t that would reinsource in for foreignIt’s come journalists close in seeking the past. to Versions in June of 2017.the bill administration “continueshis decision to study” to leave the legislation.Saudi Arabia: “I crown prince must bring an end to the ambassador to Washington, called beenthe Organization seen or heard of fromPetroleum since Exportinghe Countries.understand whatwere droveapproved the hijackers,by the House of3. Representatives Why did he go into5. Whoexile? opposeshave NOpec? left my home, my family and my violence and restore the dignity of the Khashoggi a “friend” and praised him walkedFacing ainto near-certain the Saudi presidentialconsulate in veto, the proposalmostly Saudis, in 2007into such in a actions.345-72 vote, In then by the Senate by job, and I am raising my voice. To do birthplace of Islam.” for dedicating “a great portion of his life Istanbulhas never on crossed October the 2. finishHe has line. been Things mightthe 2000s, he70-23, was twicebut the fired idea from got no furtherHe undertold friends a veto and reportersBoth that the theAmerican otherwise Petroleum would Institute betray and thosethe US who 5. 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We gas Saudis producer deserve in the better.” To finalise paperwork for his wedding Khashoggi.government has vehemently denied. the way in which3. What the country are oil enforced prices doing?TV’s “Upfront” that aired inworld, March, they he also argueIn February, that Opec Khashoggi has lost some wrote of that its to Hatice Cengiz, a 36-year-old Turkish In Turkey, they’re known as the Kasikci 1. WhatWhy is would Khashoggi the legislation so do?its religious values. (Saudi newspapers said he’d left the kingdomsway “because over world markets.Prince Mohammed US shale producers maybe “shouldalso doctorate student. He had recently family. 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Oil That Hisbreak journalism up the oil career empire has of included John Rockefeller. ambassador Even 4.to London,Where Prince do things Turki al- stand?4. What has he written?But in the short-term,Prince passage Mohammed could potentially to end the war he Producingfrom saying and Exporting anything criticalCartels about Act,” or “NOpec”marked – would the family’s empower rise tothe prominence US stintsif the Justicein Afghanistan, Department where were he met never to actFaisal, on its a former long-serving intelligence boost prices, especiallystarted if fearson Yemen of retaliatory more than action three DepartmentKhashoggi of sinceJustice his to disappearance. file an antitrust lawsuitin Saudi against Arabia. Opec However, for trying they’ve to control kept andpower followed to sue, the the rise mere of Alexistence Qaeda chief of this optionchief. 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Kuwait said Iran to merge fi ve fi nancial to plan $10bn investment fund with lenders linked with military China Bloomberg Dubai Bloomberg Dubai ran will merge fi ve lenders linked with military institutions into Istate-run Bank Sepah amid a uwait is planning to create a $10bn wider push by President Hassan fund with China to invest in the Rouhani for the armed forces to di- Ktwo countries, according to people vest from businesses. with knowledge of the matter. The entities being consolidated The Gulf state is discussing the creation include Ansar Bank, Ghavamin Bank, of a Kuwait-China Silk Road Fund that Hekmat Iranian Bank, Mehr Eqtesad would invest in Kuwaiti projects related and the Kowsar fi nancial credit insti- to the Silk City and islands development, tution, the Central Bank of Iran said according to the people. It could also be in a report on its website on Saturday. used for strategic investments in China “Bank Sepah is one of the repu- and other areas under the Asian country’s table government banks” and this “One Belt, One Road” initiative, the peo- is “an important step with a view to ple said, asking not to be identifi ed be- maintaining stability and the health cause the information is private. of the banking system,” the regulator China and Kuwait would each be re- said. sponsible for raising around $5bn for the Iran’s banks came under pressure fund, the people said. The Asian country before the nation signed the 2015 nu- would also work with Chinese strategic clear agreement with world powers partners to arrange debt fi nancing for that lifted international sanctions. projects, which could give the fund an in- To attract customers and deposits, vestment capacity of as much as $30bn, some banks have been off ering rates they said. exceeding 20%. Under the proposal, the fund’s Chinese Iran’s economy and currency have backers could introduce strategic part- been hit since the US withdrew from ners to work on its investment projects as the nuclear accord, known as the contractors, according to the people. De- JCPOA, almost a year ago and reim- liberations about the fund are at an early posed economic sanctions. The Ira- stage, and details like the size and invest- nian rial lost almost 70% of its value ment targets could change, the people in the unregulated market last year, said. prompting a crack down on currency “Silk City and development of the is- manipulators. lands is the signature project in the de- The merger of banks “is a positive velopment plan for New Kuwait 2035,” development that refl ects the seri- said Khaled Mahdi, secretary general of ous debate taking place in Iran about Kuwait’s Supreme Council for Planning the perils of mixing money and poli- and Development. “There are three pre- tics,” said Esfandyar Batmanghelidj, requisites for the signature project to be founder of Bourse & Bazaar, a news realised: the special economic zone law, website which tracks developments a private-sector fi nance model, and the in Iran’s economy. “By consolidating master plan.” He declined to comment these banks, it becomes easier for the further. Central Bank to enforce regulations China’s fi nance ministry, foreign min- on investment activities and fi nan- istry and its top economic-planning cial transparency.” body, the National Development and Re- The return of US sanctions is im- A foreign exchange trader counts Iranian rial notes at a currency exchange in Tehran (file). Iran’s economy and currency have been hit since the US withdrew form Commission, didn’t immediately peding Iran’s ability to integrate itself from the nuclear accord, known as the JCPOA, almost a year ago and reimposed economic sanctions. reply to faxed queries. into the international banking sys- Kuwait is developing its northern re- tem. ing to IHS Markit, as well as by the armed forces, some of which are un- ganisation, controls a range of local for a merger of a number of banks gion as it seeks to boost non-oil revenue Iran’s economy also has been im- “infl uence” of commercial and bank- der US sanctions, must withdraw businesses such as companies in the with healthier ones. Tehran-based and transform itself into a regional busi- paired by “defi cient” anti-money ing entities tied to the Iranian Revo- from their commercial holdings energy, telecommunications and in- Bank Sepah was founded in 1925 ness hub by 2035. The multibillion-dollar laundering rules and counter terror- lutionary Guard Corps. to help save the nation’s economy. frastructure sectors. and is one of the country’s oldest Silk City project, which has been planned ism fi nancing infrastructure, accord- Last year, Rouhani said Iran’s The Guards, a powerful military or- Local banking experts have called lenders. for more than a decade, is part of this goal.

Harnessing blockchain can help GCC build robust energy infrastructure, says Booz Allen Hamilton

Blockchain has the potential to and large-scale utilities, are starting today’s challenges, while also integrat- facilitate the development of new to engage with this technology to ing renewable energy in traditional renewable energy markets and play explore its real potential. grids. a game-changing role in helping the Dr Adham Sleiman, vice president, With electricity demand in the GCC GCC energy sector transition to a Booz Allen Hamilton (Mena) said, expected to continue growing rapidly, more secure, resilient, cost-eff ective, “Many digital services are already pos- renewable energy has become a key and low-carbon grid, according to sible today without blockchain, and asset in government strategies to Booz Allen Hamilton. energy players should avoid adopting diversify the domestic energy mix. Since the development of bitcoin in this technology for the sake of it or for By 2030, the GCC aims to install 2008, the interest in blockchain tech- fear of missing out. 80gigawatt (GW) of renewable energy nology has exponentially expanded “Early adopters should conduct a ho- capacity across the six member into many diff erent industries, with listic assessment to understand their states, constituting more than 50% its global market predicted to grow to own role in the energy value chain, of the region’s existing conventional $2.3bn by 2021. identify the business need and define Sleiman: Calling for a holistic capacity. However, despite the impact block- a clear direction of where and with assessment. Booz Allen Hamilton has outlined chain may have on diff erent industries what economic benefits blockchain- three specific use cases in which and its clear potential to disintermedi- based applications could be used.” becoming more decentralised, thanks blockchain can facilitate the integra- ate and shorten entire value chains, Renewable energy is a good can- to the role that distributed energy tion of renewable energy in electricity the technology is still young. Organi- didate for blockchain use since it resources are playing. grids across the GCC. These include sations are now starting to explore operates in a system of economic and In this context, energy players are enabling peer-to-peer (P2P) energy its application to traditional business financial transactions (electricity and increasing their eff orts to develop trading; tracking renewable energy models and processes, and players in fares), currently operated by a central blockchain-based applications and certificates; and articulating smart the energy space, including start-ups authority (utility). This is gradually processes in order to solve some of contracts. Gulf Times Monday, March 4, 2019 3 BUSINESS Brazil GDP slowdown shows urgency of Bolsonaro challenge

Bloomberg Bolsonaro’s pro-business administration the prior period, marking the worst result pace we thought possible due to a weaker- Rio de Janeiro swept to power in part due to pledges to since the crushing, two-year recession than-expected labour market,” Banco Safra’s propel growth in Latin America’s largest that ended in 2016. That is, however, less chief economist Carlos Kawall said by phone. economy that’s still scarred from a recent alarming than appears on the surface, as “Most big investment decisions have been Brazil’s economy slowed sharply in the fourth recession. Investment-led growth under his it partially stems from adjustments the postponed. The economy seems to be in a quarter amid plummeting investments, administration will depend first and foremost statistics agency made to its methodology waiting mode.” underscoring the challenges President Jair on negotiating passage of a controversial in the third quarter, according to William The weak growth number prompted Bolsonaro faces to kick-start growth. pension reform. Also, consumers are still Jackson, chief emerging markets economist Goldman Sachs and Sul America Gross domestic product expanded 0.1% in suff ering from double-digit unemployment at Capital Economics. Investimentos to cut their respective 2019 the fourth quarter, down from a revised 0.5% and stagnant wage growth. Still, the GDP result will disappoint those GDP forecast to 2%, from 2.2% previously. in the three months through September, the Brazil’s key interest rate is already at a record who had hoped growth would immediately “The positive side is that we definitively national statistics agency said on Thursday. low 6.5% and, amid weak activity data, some accelerate after Bolsonaro’s electoral victory, have emerged from recession, but the path The result was the slowest quarterly pace investors are speculating whether the central Jackson wrote in a note. Indeed, consumer to end the hiatus is still long,” said Jason since the third quarter of 2017 and was in line bank’s new president, Roberto Campos Neto, confidence dropped in February. Family Freitas Vieira, chief economist at Infinity with the median estimate from economists might cut borrowing costs further to boost consumption, which accounts for nearly two- Asset Management. “Unemployment and Brazil’s economy slowed sharply in the fourth quarter amid surveyed by Bloomberg. In the full year of activity. thirds of demand, rose 0.4% in the quarter. the challenges of reforms are directly plummeting investments, underscoring the challenges 2018, GDP rose 1.1%, the same as the prior Low rates failed to spur investments in the “The economy all in all is weaker because aff ecting investment decisions and people’s President Jair Bolsonaro (pictured) faces to kick-start year. fourth quarter; in fact they fell 2.5% from consumption hasn’t been recovering at a confidence.” growth.

S&P cuts Vale losing too-big-to-regulate Mexico sovereign edge as new regulator steps up outlook to

Bloomberg negative on Rio de Janeiro AMLO oil ale SA’s too-big-to-regulate advantages may be coming to Van end in Brazil. plan In the 10 years before Brazil suff ered two of the world’s worst mining disas- ters, the federal regulators who over- Bloomberg see the industry – and particularly Mexico City Vale, one of Brazil’s biggest employ- ers – received only 10% of the money budgeted to go to them. &P Global Ratings has lowered They had only 14 people to moni- its outlook for Mexico’s sover- tor almost 800 mines nationwide, and Seign debt to negative from sta- they worked under a system in which ble, saying the nation’s shift to limit on-site safety inspections of tail- private sector involvement in energy ings dams, built to contain the some- could lower economic growth pros- times toxic, often dangerous, waste pects. produced in mining, were most often Other developments that have done by contractors paid for by the shifted investor confi dence – such mining companies themselves. That’s as the cancellation of a $13bn airport part of a process approved under a project for Mexico City that was al- 2010 law. ready underway – could also cut into “It is a system that was designed gross domestic product and con- to fail,” said Alexandre Vidigal de Ol- tribute to higher contingent liabili- iveira, a former federal judge who took ties for Mexico, the ratings company over the country’s Mines and Energy said in a statement. Ministry just a week before the dead- Mexico’s new leftist President ly dam failure in Brumadinho. Now, Andres Manuel Lopez Obrador put he says, he’s pushing to dramatically a reform on ice that allowed pri- change the picture. vate oil drilling and instead is seek- “We had two disasters in a row, so ing to strengthen state-owned the fi rst question is what can be done energy company Petroleos Mexica- to avoid a third?” Oliveira said in a nos, including through building a wide-ranging interview at the agen- Residents survey damage after a Vale dam burst in Brumadinho, Minas Gerais state, Brazil in January. Over 300 people are believed to have died in the incident, new refi nery. The outlook shift for cy’s Brasilia headquarters. “The sys- making it the country’s deadliest. Mexico’s BBB+ rating follows a two- tem that we have today may have had notch downgrade by Fitch ratings for some merits at some point, but it’s $800 limit for fi nes, Oliveira said, not- come so dominant in a country strug- political campaigns, the revenue it For Oliveira, the bottom line is safe- Pemex, which is heavily indebted. useless now.” ing that turning to the anti-corrup- gling to regain its economic balance provides and the countless direct and ty. A federal judge experienced in cor- “The new strategy for the energy Over 300 people are believed to tion laws opens the way to “empower that legislators will be hard- pressed indirect jobs the company controls porate compliance laws, Oliveira has sector places an added burden on” have died in the January incident near the auditing.” The bottom line, says to attack the existing system. The throughout Brazil means the company no ties to Vale, as opposed to former Pemex, according to the S&P state- Brumadinho, making it the country’s Oliveira, whose offi ce wall includes company that employs about 60,000 often plays the role of chief benefac- mining secretaries. He’s pushing a ment. “There is a risk that poorer- deadliest. Just three years earlier, a small wooden sign with the words workers, is responsible for millions of tor. several-step eff ort to boost the minis- than-expected economic growth Brazil suff ered its worst environmen- “federal judge” emblazoned on it, is to dollars in iron ore exports, and is an “Without mining, Minas Gerais try’s ability to oversee mining. and greater centralisation of politi- tal disaster ever when another tail- “make an example” of anyone respon- economic force for hundreds of com- would be deserted,” said Antônio He’s already secured a promise from cal decision-making could weaken ings dam collapsed in the same state, sible. munities across Brazil. Noronha Bicalho, the mayor of Sao the government that they won’t fall macroeconomic stability amid diffi - Minas Gerais, killing 19 and choking Vale, meanwhile, said in a state- Finding the political will to invest Gonçalo do Rio Abaixo, a community victim to budget freezes moving for- cult policy trade-off s and potential- groundwater and rivers over hundreds ment that it “vehemently denies any in advanced surveillance measures with 11,000 residents that sits near ward, he said in the interview. And ly aff ect institutional eff ectiveness.” of miles. speculation about supposed infl uence targeting mining companies has his- Vale’s recently closed Brucutu mine. he’s planning to propose a way to im- The outlook shift implies a one- In the wake of those failures, Olivei- to block advances in the area of dam torically been diffi cult in Brazil. Before “Life in our town changed completely prove the collection of mining royal- in-three chance the rating will be ra has asked legal authorities to probe security. Vale reaffi rms that it respects becoming a private company, Vale was after the mine opened about 13 years ties that partially fund the ministry. downgraded over the coming year. a possible cover-up of Vale’s safety and abides by the recommendations of in essence the institutional arm of the ago. We had better schools, better “We are working alongside the tax Other policy shifts fl agged by S&P procedures. If convicted under Brazil’s the competent bodies and rigorously country’s mineral extraction ambi- health care, more jobs.” agency to see how to improve collec- as potential risks include the ad- anti-corruption law, the maximum follows the law.” tions. Later, as it began trading pub- Now, with the Brucutu mine closed tion,” he said. “There are loopholes, ministration’s plan to change the law penalty could be around $6.6bn (25bn More systemic changes may not licly, the company became the prima- under a judicial decision following the and the companies have a lot of dis- on public consultations to allow for reais) based on estimates of prelimi- come easily, despite the disasters. ry steward of Brazil’s immense mineral Brumadinho disaster, Bicalho said he cretion in revealing how much they more frequent public votes on a wider nary 2018 data. At issue is whether Vale, the world’s wealth. doesn’t know what will happen to the own in royalties. We need to fi gure out variety of issues, potentially injecting In contrast, the mining code sets an largest producer of iron ore, has be- While Vale is legally unable to fund town. how to be smarter on that.” greater uncertainty about policies.

Zimbabwe devaluation sees return of market South Africa’s Gordhan says graft sense, but only some

Bloomberg put state fi rms ‘on their knees’ Lagos

Bloomberg Zimbabwe’s recent currency devaluation has led to a more Johannesburg realistic exchange rate, yet thin trading implies the new off icial interbank market isn’t as free as off icials suggested. The central bank announced on February 20 that its quasi- outh African state companies have been brought to their currencies – bond notes and their electronic equivalent – would knees by graft, according to Public Enterprises Minister no longer be valued at parity to the dollar and would be traded SPravin Gordhan. on an off icial interbank market. At least seven state companies are “either on their knees or Since then, the bond notes, now known as RTGS dollars, have touching carpet” as institutions were damaged due to so-called weakened to 2.5 against the greenback, while the black market state capture, Gordhan said on Thursday at a conference in Jo- rate has appreciated almost 9% to 3.36 per dollar, according hannesburg. As much as 500bn rand ($36bn) probably left South to marketwatch.Cozw, a website run by financial analysts in Africa due to state capture, he said, using a local term for the use Harare. The tight trading band on the interbank market – rates of political connections to secure appointments of allies to key have ranged between 2.5001 to 2.5042 last week - indicates state posts and win contracts. trading isn’t totally free. The RBZ seems to be the only supplier The nation’s power utility is one of the key state companies of dollars, with just $7.7mn traded as of Thursday, a person that’s been driven to the brink of collapse, with debt of 420bn familiar with the matter said. rand after years of fi nancial mismanagement. Finance Minister There’s also been some improvement, again modest, with Tito Mboweni recently announced a record 69bn-rand ($4.9bn) equities. bailout for Eskom Holdings SOC Ltd to help it service its obliga- The dollar squeeze roiled the stock market, with locals piling tions. The company will also be split into three separate entities. into it to hedge against inflation, which is off icially 57% but may The government couldn’t leave Eskom as it is because the be as high as 270%, according to Steve H Hanke, a professor of company won’t be able to access capital markets in the new applied economics at Johns Hopkins University in Baltimore. fi nancial year without the intervention, said Gordhan, whose That caused foreign investors such as Cape Town-based Allan ministry oversees the utility. The state is mindful of manag- Gray Ltd – which struggle to get their money out of the country ing Eskom’s debt situation without triggering a credit-rating because of capital controls – to write down their holdings to downgrade for the sovereign, he said. more realistic levels. They measure how out of whack prices Labour unions are opposed to the plan to split the company, are by taking the diff erence between the Harare and London Pylons carry electricity from a sub-station of state power utility Eskom outside Cape Town in this picture saying it will lead to job losses. shares of Old Mutual Ltd, Africa’s largest insurer. taken March 20, 2016. Eskom is one of the key state companies that’s been driven to the brink of collapse, Eskom’s restructuring will be done in as consultative a way as with debt of 420bn rand after years of financial mismanagement. possible, Gordhan said. Gulf Times 4 Monday, March 4, 2019 BUSINESS

Hong Kong dollar near Pakistan set to fi nalise $12bn weak end of band raises bailout package with IMF risk of

Internews tightening Islamabad

Bloomberg akistan will soon reach an agree- Hong Kong ment with the International PMonetary Fund (IMF) on a po- tential bailout package worth $12bn ension is mounting that will help Islamabad support its among Hong Kong dollar fl edgling economy, improve foreign Twatchers as the currency exchange reserves and overcome a bal- hovers near the weak end of its ance of payment crisis, it was learnt trading band against the green- yesterday. back, increasing the likelihood Early indications suggest that Pa- of higher borrowing costs in kistani authorities requested a loan of the city. $12bn. “We maintain that Pakistan and The Hong Kong dollar has the IMF will reach an agreement over a traded close to the HK$7.85 level bailout soon, with a potential bailout in recent days, and was even size of about $12bn,” Fitch Solutions quoted at that level earlier on said in its latest update on Pakistan’s Friday, according to data com- economy. piled by Bloomberg. “We believe that the conditions and Traders however said they targets will focus on key areas such as hadn’t seen transactions at that fi scal consolidation and debt man- price. agement, a review of monetary and The level is signifi cant be- exchange rate policy, fi nancial and cause if it is hit, and there are banking sector reforms, as well as the orders not fi lled by other trades, implementation of key structural re- the Hong Kong Monetary Au- forms,” it added. thority is obliged to buy the cur- It will be the highest loan by any Pa- rency. That in turn drains liquid- kistani government in its history from ity, forcing up interbank rates the fund. Fitch noted that 2013 package - as happened on a number of improved Pakistan’s macroeconomic occasions last year. fundamentals over the three year time- Local rates have recently frame before fi scal and monetary man- been tumbling however, while agement started to slip again in late- The headquarters of the International Monetary Fund in Washington, DC. Pakistan will soon reach an agreement with the IMF on a potential bailout package worth $12bn US borrowing costs have risen, 2016 and 2017. that will help Islamabad support its fledgling economy, improve foreign exchange reserves and overcome a balance of payment crisis, it was learnt yesterday. making it profi table to short “We would expect similar measures the Hong Kong dollar. The one- to be implemented in the event of a ran Khan’s government has been striv- port the currency and forex reserves. are under pressure. Iqbal Dawood, IMF will request Pakistan to strengthen month interbank rate, known as package being signed.” Fitch said meas- ing to secure more funds and aid from And the biggest loan from the IMF will president of the Pakistan Business tax administration, broaden the tax Hibor, reached a 10-month low ures to strengthen Pakistan’s fi scal and friendly countries and the IMF to put certainly help stabilise the rupee. Council, said the government has no base and raise its tax-to-GDP ratio. of 0.91% on Tuesday, compared debt dynamics will likely be a major back Pakistan’s economy on track and Imran met IMF managing director option but to go to the IMF for the loan. In addition, the reduction in public with 2.49% for US Libor. Hence cornerstone of the IMF deal, with the improve its global reputation. Christine Lagarde on the sidelines of the “The benefi t of going to the IMF is spending would likely involve further a rapid weakening in the Hong end-goal of narrowing the budget defi - “Pakistan has been successful in World Government Summit in Dubai that interest rate is low as the govern- reductions to energy subsidies, as the Kong dollar. cit and stabilising the debt-to-GDP ra- securing some funding from the Gulf last month to discuss the loan. Ahmed ment The government must control its target of reducing the subsidies to 0.4% Carie Li, an economist at tio through austerity measures. countries and has good hopes of getting Shaikhani, senior vice-president at the costs and reduce expenditures in addi- of GDP under the previous package was OCBC Wing Hang Bank Ltd, “These policies will likely be aimed the IMF loan. Such a loan will come at Pakistan Business Council, said a $12bn tion to managing funds in such a way not met given that subsidies still stood is expecting intervention to at reducing the budget defi cit from an stringent terms and Pakistan govern- IMF loan in current circumstances is that the government must not opt for a around 0.9% in 2016. come any day now as the weak estimated 6.6% in 2018 to approxi- ment would need to work hard for its positive but in the coming months there loan again in the future,” he said. Moreover, there will also likely be end is reached, but says the mately 4-5%, or even lower, over the servicing. A lot needs to be done on in- could a challenge for repayment. According to Fitch Solutions, public a focus on reducing the transfers to HKMA won’t need to buy as next one-to-three years [with the ternational and regional relationships.” “The government has no policy in debt currently stands at 71.4% of GDP. provinces so as to better align federal much as before because li- budget 2018-19 (July-June) already tar- The Imran-led government has ob- place to expand its tax net or improve Hence, fi scal consolidation will help and provincial responsibilities in the quidity is already far below geting a defi cit of 4.9%]. tained $10bn from countries including exports even after being in the power to stabilise, and potentially lower, the expenditure. previous highs. This would be roughly in line with the UAE, Saudi Arabia and China in or- for seven months. Also, infl ation will debt load. The IMF previously targeted Fitch believes that structural re- Interbank liquidity - known as the consolidation programme imple- der to help stabilise foreign exchange, increase due to a hike in gas and elec- to lower the debt-to-GDP ratio from forms will be another pillar of the the aggregate balance - stands mented in 2013 that set out expecta- meet its current account defi cit and tric prices due to the loan deal,” said 63.9% in 2013 to 60.5% over a period of IMF deal, similar to the reforms un- at around HK$76bn ($9.7bn), tions for a reduction in the fi scal defi - support the rupee. Shaikhani, who is also the head of three years. der the loan arrangement in 2013 and compared with about HK$180bn cit by an annualised one% per year for Due to a persistent decline in forex Shaikhani Group. However, this was not achieved these will likely focus on the priva- before the HKMA intervened in three years,” Fitch added. reserves, the rupee has depreciated ap- He noted that the government has to and the ratio eventually rose to 67.6% tisation of loss-making public sector April 2018. Atik Munshi, senior partner at Crowe proximately 30% in the past year and come up with quick solutions and poli- in 2016. Similar to the previous loan entities and measures to improve the Ultralow borrowing costs Horwath UAE, said Prime Minister Im- Islamabad needs fresh funding to sup- cies as the stock market and currency agreement, Fitch Solutions expects the local business scene. have fuelled price booms in eve- rything from houses to car park spaces in Hong Kong. Last year’s rise in interbank rates helped trigger declines in real estate Pakistan’s imports of pulses, palm oil and tea increase prices, with one-month Hibor reaching a decade-high of about Internews January 2019. Amid a decline of 8% in accordingly. However, the rupee major fall came in soybean oil imports Spices imports rose in quantity to 2.4% in December. Karachi the country’s overall food import bill to devaluation has impacted the prices as to 66,705 tonnes valuing $49mn, down 78,091 tonnes from 77,818 tonnes but Still, any tightening will be $3.464bn in 7MFY19, imports of pulses, payment is made in dollars,” he added. by 44% and 53% in quantity and value its import bill remained low at $86mn limited by a dovish Federal Re- tea and palm oil registered a positive Tea imports climbed to 132,784 tonnes over same period 7MFY18. Soybean oil versus $93mn. Its AUP came down to serve and capital infl ows, ac- Pakistani consumers are paying higher growth in terms of quantities. ($347mn) from 110,147 tonnes ($340mn) AUP plunged to $740 per tonne from $1,105 per tonne from $1,195 per tonne. cording to Li. prices for essential food items despite Import of pulses rose to 563,035 in 7MFY18, while its AUP witnessed $891 per tonne. Rice prices soared by Rs15-20 per kg Hong Kong eff ectively im- a decline in rates of raw materials and tonnes costing $324mn in 7MFY19 from drastic fall to $2,616 per tonne from The AUP of palm oil also declined to in the last seven months amid a mixed ports US monetary policy thanks finished goods in world markets during 408,975 tonnes worth $315m in same $3,086 per tonne. $611 per tonne from $745 per tonne. trend in rice exports. Basmati exports to the currency peg, even if local the past seven months of the current period last fiscal. Its average unit price Chairman of Pakistan Tea Association However, its imports surged in quantity surged to 328,374 tonnes ($305mn) rates don’t always track those fiscal year. (AUP) fell to $576 per tonne from $771 (PTA), Shoaib Paracha said tea prices by 11pc to 1.8m tonnes but plunged in from 244,040 tonnes ($255mn) while across the Pacifi c. Hong Kong Meanwhile, traders said the rupee per tonne. in the wholesale markets increased by value by 9% to $1.1bn. other varieties exports fell to 1.791m equities have climbed this year, devaluation has faded away the Wholesalers of pulses had pushed up Rs50-60 per kg from July 2018 onwards The local industry has expedited its tonnes ($749mn) from 2.034mn tonnes with the Hang Seng Index jump- impact of falling world prices, thereby price by Rs5-10 per kg on falling rupee owing to rupee depreciation. imports to meet higher demand for ($812mn) in 7MFY18. ing 11%. increasing the prices of ghee, cooking value against the dollar. He said Kenya tea prices had fallen due ghee and cooking oil during Ramadan Sugar prices swelled to Rs62-65 A tick up in interbank rates oil, tea, pulses, and spices. Patron-in-chief Karachi Wholesalers to good crop in the last two to three which will begin in the last week of May. from Rs55 per kg while its exports may mean HKMA intervention Many companies and traders had Grocers Association (KWGA) Anis months. Consumers had witnessed Rs10 per plummeted to 276,393 tonnes ($82mn) isn’t needed. One-month Hi- enhanced their buying following drop Majeed said, “Regardless of the The most notable decline of 74% and kg/litre jump in ghee and cooking oil from 610,770 tonnes ($227mn) in bor has climbed 23 basis points in world prices of many commodities prevailing global prices of essential 70pc in quantity and volume was prices. 7MFY18. in the past three days, and now and raw materials. These stakeholders food items, the landing cost increases witnessed in dry fruits and nuts – 16,997 Imports of milk cream and milk The price of various varieties of flour stands at 1.14%, helping push came out with a price hike on the basis due to rupee devaluation which is done tonnes and $27mn – owing to massive food for infants plunged to 48,162 also rose by Rs2 per kg despite the the Hong Kong dollar away from of 15% rupee fall against the dollar in according to the ratio of increase in smuggling of these items via informal tonnes ($137mn) from 52,550 tonnes availability of ample stocks from last the weak end of the band. the last seven months. dollar value.” channels. However, the AUP climbed to ($152mn) in seven months of the last year and the arrival of new crop in The currency last traded up Back in July 2018, when one dollar “Given that the prices of pulses in $1,596 from $1,396 per tonnes. fiscal year. The AUP of milk products March/April. Wheat exports in 7MFY19 0.02% at 7.8487 per greenback was equal to Rs121, the exchange rate world market are going down, the According to the figures of Pakistan slightly fell to $2,859 per tonne from climbed to 468,443 tonnes ($99mn) on Friday. Either way, it seems changed drastically to Rs138/139 in local market price should have fallen Bureau of Statistics (PBS), another $2,898 per tonne. from 173 tonnes valuing $45,000. tightening is on the cards for Hong Kong. MSCI to boost China stocks weighting as bull market builds

Bloomberg The Shanghai Composite Index 80% of turnover emanates from local tor that has won the support of inter- Hong Kong climbed 1.8%. retail investors more easily swayed by national institutional investors,” the The weighting increase will con- the latest headlines than the earnings statement said. tribute to making 2019 a record year prospects of A-share companies.” There will be 253 large- and 168 SCI Inc will expand the for potential infl ows to the A-share The ramp-up is happening at a time mid-cap China shares in the index, weighting of China-listed market, Harvest Global Investments when a sudden bull market in Chinese including 27 ChiNext stocks, once the Mshares in benchmark indexes estimates. shares is raising concern that the mar- inclusion is completed, MSCI said. tracked by global investors, a decision Goldman Sachs Group Inc said the ket is overheating. Investors using index tracker funds that could see billions of dollars fl ow overall inclusion factor increase could China’s stocks only gained a place will fi nd more China- listed shares in into one of the world’s most volatile usher in a potential $70bn of net buy- in MSCI’s global indexes last year after their global portfolios following the major stock markets. ing to A shares, while T Rowe Price Beijing took steps to improve market changes. The increase will occur in three Group Inc says $40bn could fl ow from access. Hong Kong Exchanges & Clearing steps this year beginning in May, with active funds, without specifying a time UBS Group AG forecasts fl ows of Ltd, co-operator of the stock connect the weighting of Chinese A shares ul- frame. around $12.5bn into China this year cross-border trading link, also stands timately rising to 3.3% of the MSCI MSCI added China’s domestic stemming from MSCI, as well as FTSE to benefi t from the move. Its shares Emerging Markets Index in Novem- shares for the fi rst time last June, fol- Russell, adding the nation’s stocks to were 1.3% higher in Hong Kong. ber from 0.72%, the company said in a lowing years of rejection due to ac- their indexes. Institutional investors want China statement. cessibility. While some major hurdles The proposal to increase the weight- to make further changes before the in- Shares listed on the tech-heavy had been resolved, concerns remain ing had overwhelming support from clusion weighting is increased again, ChiNext board will join its indexes for for foreign investors trading in China, investors, MSCI said in a statement on including relaxing restrictions on fu- the fi rst time. where markets are prone to state inter- Thursday. tures contracts and other hedging Onshore stocks extended their vention and dominated by local retail “The strong commitment by the tools, MSCI said. advance in afternoon trading after investors that have helped fuel boom- Chinese regulators to continue to im- China’s same-day settlement cy- swinging between gains and losses in bust cycles. a day through stock links with Hong ever MSCI do,” Nicholas Yeo, head of prove market accessibility, evidenced cle and the closing of the stock con- the morning. Capital controls still remain, with Kong. “Many global investors will view China equities at Aberdeen Standard by, among other things, the signifi cant nect when there are public holidays in The ChiNext gauge closed 2.1% quotas - though hardly fully used - China’s onshore stock market as a bit Investments, wrote in a note. “This is reduction in trading suspensions in either Hong Kong or China were also higher, after falling as much as 0.2%. limit the amount that can be traded in of a basket case, regardless of what- an ineffi cient market, after all, where recent months, is another critical fac- highlighted among investor concerns. Gulf Times Monday, March 4, 2019 5 BUSINESS

Goldman, JPMorgan still see upside in China assets after rally

Bloomberg Multiple factors have helped Singapore drive the rebound in Chinese stocks this year. Optimism in- creased about the US-China hinese stocks have had a trade situation, while the Peo- great start to 2019, and it ple’s Bank of China moved to Cmay not stop there. The cushion the country’s economy benchmark CSI 300 Index has and Beijing’s new chief securi- risen 25% this year, outperform- ties regulator made a call to “re- ing all other major stock gauges. vere the market.” The off shore yuan has risen more And then there was the wide- than 2% versus the US dollar. ly-anticipated announcement And while Goldman Sachs last week that MSCI Inc would Group Inc and JPMorgan boost the weighting of main- Chase & Co say some sectors land-listed shares in its indexes. are fairly valued or even ex- Both Goldman and JPMorgan pensive, they also see China- cautioned in their reports that related assets where further further strong performance in gains are likely. China-related assets is highly “We see room for modest mul- contingent on the outcome of tiple expansion for China,” Gold- trade talks with the US, includ- man strategists led by Timothy ing the details of any deal. Moe wrote in a note March 2. US-exposed China stocks “We estimate an average 4% that could benefi t from im- further upside in off shore equi- proving news on trade include ties if trade news improves fur- Nexteer Automotive Group, An employee arranges yuan banknotes at the Korea Exchange Bank headquarters in Seoul (file). US officials have said any trade deal with China will include a provision ther. For trade-related names, AAC Technologies Holdings Inc to prevent manipulation of the exchange rate to help exporters but Beijing’s currency regime reflects a complex reality. we see better value in the US- and Genscript Biotech Corp, exposed China stocks than the the Goldman strategists wrote. regional exporters.” Companies that could benefi t And they aren’t alone in see- from a strengthening renminbi ing some areas that are still ripe include Shenzhen International for investment. Holdings Ltd and China Aoyuan “We anticipate further Group Ltd, they said. gains, but at a slower pace and JPMorgan sees the yuan and conditional on policy lifting local-currency bonds as looking Currency manipulation growth and earnings expecta- expensive right now, while cop- tions,” in the second half of the per is “slightly” dear. Alumini- year, JPMorgan strategists led um and soybeans look cheap, the by John Normand wrote in a fi rm said, and metals & mining note March 1. “China equities stocks are undervalued along are worth overweighting more with other cyclicals like tech and becomes key issue in than CNY, and agriculture is fi nancials. now a more interesting catch- “Bullish momentum has yet to up trade than base metals.” fade broadly,” Normand wrote. US-China trade talks Dai-Ichi sticks with foreign bonds as hedge costs weigh AFP of China sets each day to refl ect market rency markets in 2015-2016 to counter- weak and in fact say it has been making Paris trends. act this depreciation, using its massive an eff ort to keep it from falling too much. That managed fl oat system limits vol- foreign reserves to buy yuan. And since August, the PBoC said it Bloomberg investment department focused atility: the currency has remained con- Capital fl ight slowed as the RMB sta- would use a “counter-cyclical factor” to Tokyo on alternatives – which account S offi cials have said any trade deal fi ned in the last fi ve years between 6.2 bilised. calculate the daily exchange rate range, for less than 5% of total assets – with China will include a provi- and 6.8 yuan to the dollar, a historically Analysts say more recent weakening of a move said to keep the RMB relatively when the new fiscal year starts Usion to prevent manipulation of high level, compared to 8.28 fi xed rate in RMB is not due to manipulation but is the stable. There’s a world full of bonds but on April 1. the exchange rate to help exporters but the 2000s. result of China’s economic slowdown, That makes economists question the very little to buy, according to Dai- Dai-Ichi’s strategy highlights Beijing’s currency regime refl ects a com- While the RMB strengthened 6.3% the trade war, and rising US interest Trump administration’s demands, even Ichi Life Insurance Co. the challenge facing Japan’s life plex reality. in 2017, it depreciated by 5.7% last year, rates that push up the value of the dollar though they acknowledge that China’s Caught between high hedging insurers who have seen Treasury US President Donald Trump, who has falling to its lowest level in a decade, against all currencies as investors search intervention from 2002-2010 helped to costs and the specter of a strong- yields lead a global decline since accused the Asian giant of artifi cially un- which was enough to spur speculation for higher yields. drive up the US trade defi cit. er yen, the Japanese insurer is November as economic growth dervaluing its currency for competitive Beijing was putting its foot on the cur- But amid renewed optimism on the Adam Posen, head of the Washing- switching between yield plays stutters and the Federal Reserve purposes, last week said “we have a deal” rency scale again. progress of trade negotiations with ton-based Peterson Institute for In- and short-term capital gain bets, signalled a pause in rate hikes. with China on the currency. But the International Monetary Fund Washington, the yuan has rebounded by ternational Economics, cautioned the while also turning to alternative Currency hedges add to that And White House economic adviser has said the RMB is not undervalued, and almost 3% since early January. Trump team against using 1950s era assets such as hedge funds. predicament with the costs for Larry Kudlow on Thursday said the draft in a July report said it was “broadly sta- China certainly can use its colossal strategies to solve modern trade issues, “It’s a judgement call between dollar-yen protection near the documents would prohibit currency ma- ble against the basket of currencies...and foreign reserves — $3.1tn at the end of which tariff s and exchange rates are less tolerating negative income after highest since 2007. nipulation and oblige authorities in Bei- broadly in line with fundamentals.” Even January — to intervene if it chooses to able to deal with. hedging or taking currency risks,” The high dollar-hedging costs jing “to report any interventions in the the US Treasury has regularly acknowl- prop up the RMB. Insisting on “a market-determined said Takahiro Tsuna, deputy dim the appeal of Treasuries, market.” edged in a semi-annual report, most re- And after the experience in 2015 and exchange rate for China...sounds nice general manager of the insurer’s while European bonds aren’t as But at the centre of the issue is a para- cently in October, that Beijing is not ma- 2016, anxious to halt the yuan’s plum- but is nuts,” Posen told AFP. investment planning group. attractive as they were because of dox: China does not necessarily want a nipulating its currency. met, the PBoC had drastically tight- “If you start doing what the Trump “Hedged or unhedged, foreign low yields, according to Tsuna. weak currency, and the downward pres- Beijing, however, shook the markets in ened capital controls to keep funds from team is doing and say the currency can’t bonds will have to be the main fo- Allocation breakdown: 25% of sure on the yuan is in large part caused August 2015 with a one-time devaluation fl ooding out of the country. ever go down, you’re just going to cause cus because that’s our most liquid Dai-Ichi’s ¥35tn ($314bn) in total by US economic conditions, like rising that weakened the yuan by about 5% in a Does China want a weak yuan? a mess.” assets, but we seek to strengthen assets are in foreign bonds. Half interest rates. week. The decision led to massive capital A weakened yuan makes Chinese ex- But Mark Sobel, a former US Treasury alternatives a bit to hedge against of that in the US, with as much as Is the yuan undervalued? fl ight out of China, which exacerbated ports cheaper and more competitive and offi cial, said if the US and Beijing focus volatility.” The insurer is turning 30% in Europe. The yuan or renminbi (RMB) is not the currency’s decline. can therefore partly off set the impact of on currency stability, conditions “are to real estate, project financing, Also owns Australian bonds. Di- freely convertible and the government Outfl ows amounted to nearly $650bn US tariff s. ripe” to achieve that: the US Federal Re- and private equity, Tsuna said in a versified into Spain, Italy, Poland, limits its movement against the US dol- in 2016. But economists dispute the Trump serve has paused interest rate increases, February 22 interview in Tokyo. Sweden, and Denmark, though lar to a 2% range on either side of a cen- Can Beijing control the currency? administration’s claim that Beijing has and China’s stimulus eff orts are showing Dai-ichi Life will set up a new the amount is small. tral parity rate which the People’s Bank The PBoC actively intervened in cur- been keeping the currency artifi cially signs of stabilising a slowing economy.

Goldman Sachs strategist sees yen hitting 60 Philippine peso beats Asian peers in to dollar next crisis surprise win as infl ation eases Bloomberg 110.79 in London on Friday. “There is Tokyo humongous leverage that’s been built Bloomberg ing abroad climbed to an all-time high up in the Japanese financial system Singapore of $2.85bn in December. towards the dollar.” Infl ation data due March 5 could With global stocks rallying since the The Bank for International Settlements provide more fodder for peso bulls. start of the year and recession fears has been among those to highlight he Philippine peso has defi ed Consumer-price gains may have easing in at least some quarters, the risks of Japanese banks having a yawning current-account eased to a one-year low of 4.0% in preparing for the next crisis isn’t top- accumulated large dollar assets that Tdefi cit to emerge as Asia’s best- February, according to a Bloomberg of-mind for many market players just rely on market-based funding - as the performing currency in February. And survey of economists on Friday after- now. That hasn’t stopped one Goldman country’s lenders don’t have enough it may continue to surpass its peers. noon, and within the central bank’s Sachs Group Inc strategist from game- deposits in greenbacks to fund those Peso bulls say record remittances, target band of 2 to 4%. Price pressures planning. overseas loans. rising investment and a buoyant do- have waned since touching a nine- “On the macro side, I really think The mismatch amounted to hundreds mestic economy will propel further year high in September, thanks to dollar-yen for me is the key pressure of billions of dollars by the end of 2016, gains in the currency. Easing infl ation government measures to boost food point,” to consider in the next the BIS said in a report released in June could also lend a hand, as higher real supplies. downturn, Bernhard Rzymelka, 2017. yields burnish the appeal of Philip- This augurs well for peso govern- Goldman’s head of rates-market Some Japanese banks, pushed by pine bonds. ment bonds, which gained 0.4% in strategies Europe, said at a low returns at home, also have large The peso is among Asia’s biggest The Philippine peso has defi ed a yawning current-account defi cit to February, the seventh-best performer conference in Sydney Wednesday. “I holdings of overseas bonds. Japan turnaround stories, as the currency emerge as Asia’s best-performing currency in February. And it may among 34 sovereign markets tracked keep asking people where do you Post Bank Co and Norinchukin Bank bounced back from a 13-year low af- continue to surpass its peers by Bloomberg. Waning price pressures think that’s going to go if the Fed are among those that accumulated ter a slew of economic reforms and a will boost real yields on Philippine cuts to zero” given what happened hundreds of billions of dollars of such $170bn infrastructure spending plan the start of the year, as a pause in Fed- may drop further in the near term. debt, particularly as the central bank the last time the Federal Reserve assets, according to data compiled by revived sentiment. Proactive central eral Reserve tightening and easing Sentiment towards the peso has remains in hawkish mode for now. applied extraordinary stimulus, he Michael Makdad, a Morningstar Inc bank policy has also helped win over global trade tensions fuelled demand recovered even after the central bank Ten-year peso bonds off er a real said, predicting next time it hits a analyst in Tokyo. sceptics. for developing-nation assets. forecast the nation’s current-account yield of 2%, compared with about 5% record. Japanese authorities have cited solid “The peso has been stronger re- The peso was among the hardest defi cit will widen to 2.3% of gross for Indonesian securities and Indian The yen strengthened powerfully in capital levels of their nation’s financial cently and could continue to outper- hit in the emerging-market sell-off domestic product in 2019, the big- debt. But for peso bears, the outlook the years following what’s known in institutions. Rzymelka’s take suggests form in the region, amid sustained last year, tumbling to a 13-year low gest shortfall since 2001. The recent is less certain. Japan as the “Lehman shock” of fall that may change in a time of crisis net foreign portfolio investments on of 54.41 in October as investors pun- rebound in crude prices threatens to “Peso outperformance is unlikely 2008, reaching a postwar high of should the yen soar - reducing the a widely expected further declining ished economies running current- worsen the gap, as the Philippines im- to persist,” said Divya Devesh, head of 75.35 per dollar in October 2011 after value of overseas assets. trend of local infl ation,” said Mike account defi cits. ports almost all its oil requirements. Asean and South-Asia FX research at the Fed slashed rates, implemented “If the Fed gets cutting and threatening Ricafort, economist at Rizal Com- Technicals back the case for further Investors are betting on the peso Standard Charted Bank in Singapore. quantitative easing and pulled down QE, there’s much more downside and mercial Banking Corp in Manila. peso gains. The dollar-peso currency after foreign investment into Philip- “Monthly trade defi cits are likely to longer-term US yields. much more funding stress built up in The Philippine currency strength- pair remains in a bear trend, hovering pine stocks and bonds recorded a net persist, leading to strong dollar demand “This time we are going to go to 60” the Japanese system than people are ened 0.8% in February to 51.70 per above initial support at 51.90, its Feb- infl ow of $763mn in January, more onshore. In addition, monetary policy yen per dollar, Rzymelka said. It was at aware of,” he said. dollar, the best performance among ruary 13 low. The pair’s slow stochas- than four times the level a year ago. is likely to remain unchanged in 2019, Asian currencies. It has climbed since tics, a momentum indicator, signals it Remittances from Filipinos work- with risks skewed towards rate cuts.” Gulf Times 6 Monday, March 4, 2019 BUSINESS

Bond traders bet steepening has more steam as payrolls approach

Bloomberg Markets are pricing in little change week. The long-end slump spurred ac- high threshold for the market to price New York for the Fed through 2019, and policy tivity in options, with traders targeting in even signifi cant odds of one hike.” makers are signalling they’ll be patient 30-year yields to climb beyond 3.33%. Friday’s payrolls report is the high- when it comes to adjusting rates. Gennadiy Goldberg of TD Securi- light for US economic data releases, s Treasuries traders reap profi ts That should anchor short-maturity ties doesn’t see much to interrupt that and traders will also get a look at the on yield-curve steepener bets, yields relative to those on long-dated trend this week. The US likely added latest Beige Book on Wednesday. AWall Street says the wagers have debt, pointing to a steeper curve, by 185,000 jobs in February, according to Here’s the calendar for economic re- more juice. Mathias’s calculus. a Bloomberg survey, down from Janu- leases: March 4: Construction spend- The spread between 5- and 30-year “Over the last month, the Fed has ary’s 304,000. Average hourly earnings ing. March 5: Markit services PMI; yields climbed to the highest level in really communicated that they have are expected to increase by 3.3% on a ISM services index; new-home sales; a year last week. With the days ahead no interest in hiking aggressively,” said yearly basis, close to the fastest accel- monthly budget statement. March 6: bringing key US economic data and Mathias, senior global rates and FX eration since 2009. Mortgage applications; ADP employ- another round of speeches from Fed- strategist at Vanguard. “Stronger data But even a robust report is unlikely ment; trade balance. March 7: Chal- eral Reserve policy makers, analysts is not likely to be met by rising yields to meaningfully boost tightening ex- lenger job cuts; initial jobless claims; say the risks are skewed toward further at the short-end.” Thirty-year yields pectations, according to Goldberg. Fed non-farm productivity; Bloomberg widening. touched a 2019 high of 3.14% on Friday Chairman Jerome Powell gave traders consumer comfort; household net Rate-hike expectations are unlikely amid a fl ood of high-grade corporate little reason expect further tightening worth; consumer credit. to budge much, so it will be diffi cult issuance and stronger-than-antici- last week. March 8: Employment data; housing for the curve to fl atten even if February pated US gross domestic product fi g- “The degree of market pessimism starts/building permits. payrolls data set for release on Friday ures. has made it very diffi cult for the curve A number of Fed offi cials take the show surprising strength, according to The spread over fi ve-year debt to fl atten as the market refuses to price stage, with a Friday night appearance Vanguard Group’s Anne Mathias. swelled to about 60 basis points last in rate hikes,” Goldberg said. “There’s a by chairman Powell scheduled.

How the cobalt market fell Crypto fi rms complain they’re victim to allure of electric cars being shunned by most banks Bloomberg London Bloomberg “I’m washing my hands of them London and now avoid banking altogether.” obalt prices were surging so much Those warnings are loudest about last year that thieves were carry- the need for banks to meet existing Cing out elaborate heists at ware- he gatekeepers of mainstream rules to fi ght money-laundering – a houses in Europe’s busiest port. Now, commerce are keeping their compliance task that already costs prices are in free fall and mining compa- Tdoors shut to cryptocurrency fi nancial fi rms some $25bn a year, ac- nies are taking the fi nancial hit. companies. Entrepreneurs in the dig- cording to one estimate. The story of what happened is the ital-assets industry from New York Anti-money laundering rules typi- classic boom-bust in commodities. In to Hong Kong say that even as some cally require banks to know the iden- the case of cobalt, it was Elon Musk’s attract investment from multibillion- tity and aims of their clients and of- vision of electric cars gaining mass ap- dollar institutions like Singapore’s ten be able to trace the source of their peal and an ensuing rush of money to sovereign wealth fund, they are rou- customers’ cash. bet that the world will need a lot more tinely refused basic banking services Building a compliance and moni- cobalt, a critical component of lithi- by the likes of HSBC Holdings Plc and toring system is expensive and some um-ion batteries. JPMorgan Chase & Co. banks conclude the costs just aren’t Adding to the allure was a widely-held While top-tier banks are getting worth it. view that cobalt supply is constrained. more crypto-curious—JPMorgan Among those willing to take that Geologically speaking, the metal isn’t rolled out a prototype digital coin risk is Caitlin Long, a former Morgan rare, but almost exclusively produced as last month—most see the growing Stanley banker. She’s now leading ef- a byproduct of copper and nickel mining. number of companies in the industry forts to introduce blockchain legisla- The idea that more cobalt supply de- as they have since day one, ticking tion in her home state of Wyoming pended on higher prices for those metals regulatory time bombs. that would allow for, among other turned out to be a myth. Crypto isn’t the only novel industry things, a bank dedicated to the block- Instead, the surge in cobalt prices trig- having a hard time accessing tradi- chain industry. gered a boom in supply from the Demo- tional banking to support its develop- Wall Street is proceeding tentative- cratic Republic of Congo. Prices have ment, a federal prohibition on mari- ly in crypto. Days after its new JPM plunged more than 60% from a peak in juana has kept big US banks out of the Coin surfaced, the largest US lender April 2018, to $15.88 a pound, according cannabis industry too. told Chris Matta, co-founder of an to Fastmarkets MB. “No bank is willing to help them investment fi rm for digital currencies Glencore Plc, the top producer of co- out,” said Robby Houben, a lawyer in New York, it will not bank crypto balt, extended that lead in 2018 with a and professor at the University of businesses. major expansion at its mines in Congo. Antwerp who co-authored a paper Offi cials for JPMorgan and Bank Chinese miners also ramped up pro- for the European Parliament on fi- Digital currencies have attracted outlaws since the fi rst one, bitcoin, appeared a decade ago because of America declined to comment on duction to feed growing demand from nancial crime involving cryptocur- they obscure the identities of parties in a transaction and operate outside the regulated fi nancial system their dealings with crypto fi rms. An battery makers. rencies. HSBC spokesman said the bank is Record prices also unleashed a mod- “I have met some really stand-up tivities. Though legitimate uses have problem.” In the meantime, folks like and Bank Frick in Europe. And some monitoring the development of digital ern-day gold rush in Congo. Thousands people in crypto that don’t deserve mushroomed in recent years, it’s sim- Jesse Powell, CEO of crypto exchange crypto diehards are doing what you’d currencies and regulations governing of small-scale miners scrambled to ex- such a bad reputation and want the pler for banks to maintain a blanket Kraken, are caught in the middle. expect from those who are committed their use, and does not bank virtual- ploit rich mineral deposits, often work- sector to be regulated, yet for every prohibition, said Jerry Brito, execu- The boss of one of the oldest Bitcoin to a completely unregulated fi nancial currency exchanges. ing illegally in dangerous makeshift pits, one of those, there are plenty of oth- tive director of crypto advocacy group exchanges vented on Twitter in Janu- system. In London, blockchain investment, where ore is extracted by hand. Supply ers trying to scam the public, launder Coin Center in Washington. ary that he “basically had to employ Mark Lamb, Hong Kong-based trading and advisory fi rm NKB Group from these so- called artisanal miners money or evade taxes.” “The standard answer of `just go to the arts of a money launderer to sur- chief executive offi cer of newly has struggled to establish banking more than doubled between 2016 and Digital currencies have attracted your local Chase branch’ doesn’t work vive” after JPMorgan Chase and Bank launched crypto derivatives exchange relationships, said Ben Sebley, NKB’s 2018, according to trading house Darton outlaws since the fi rst one, bitcoin, in crypto,’’ said Sam Bankman-Fried, of America closed the exchange’s pay- CoinFLEX, said he pays employees, head of brokerage. The company’s as- Commodities. appeared a decade ago because they chief executive offi cer of Alameda Re- roll account on short notice. lawyers and accountants in crypto sociation with cryptocurrencies is of- Glencore is accumulating big invento- obscure the identities of parties in a search, a digital-assets trading fi rm in While the largest banks shun cryp- or in so-called stable coins, such as ten an insurmountable obstacle, even ries at the Kamoto mine site and storage transaction and operate outside the Berkeley, California. to, a group of smaller lenders have Tether. after months of detailed discussions depots in South Africa, after suspending regulated fi nancial system. “It’s not illegal for big banks to bank seized on an underserved market. “The banking system has never with potential banking partners, he sales from the mine following the dis- From Silk Road, the online drug ba- the crypto industry, but it’s a massive One, Silvergate Bank in San Diego, been friendly to crypto, and while said. covery of radioactive ore. zaar shut down by the FBI in 2013, to compliance headache that they don’t said in a November fi ling for an initial maybe that made some sense in “Denying basic banking is mad- Low cobalt prices have also hurt Russian intelligence offi cers indicted want to put the resources in to solve.’’ public off ering that crypto businesses the early days, continuing to label ness, impedes sector growth and forc- Glencore fi nancially. The company for hacking off ences related to the “Denying basic banking is madness, have as much as $40bn to deposit. all crypto businesses as high-risk es companies to get creative to solve missed analyst estimates in its recent 2016 US presidential campaign, cryp- impedes sector growth and forces Other banks courting crypto fi rms is indefensible and protectionist,” the problem,” he said. “The banks are earnings report. to has been associated with illicit ac- companies to get creative to solve the include Signature Bank in the US said Lamb. being overly prudent.”

SPOTLIGHT ON COMMODITIES Precious metals suffer from risk appetite across other assets

By Ole Hansen increased demand for industrial metals consolidation low and the 38.2% saying that the world is too “fragile” during the week in question. while easing fears about slowing retracement of the August to February to handle price hikes at this stage. On the back of this observation and demand growth for crude oil. rally. Following the initial sell-off , the market a continued drop in open interest Commodities started March on The agriculture sector remains the High-grade copper was a star quickly recovered after comments from on the Brent futures contract since the defensive as losses across key most challenged among the three performer during February on the back the Saudi Minister of Energy saying that February 15, we suspect macro funds agricultural products and emerging major commodity sectors. Weakness of tightening supply and optimism on the current production cut deal could have started to fade (sell into) the profit-taking in precious metals more was led by the grains sector with the several Chinese fronts. be extended into the second half of the current rally in the belief that economic than off set gains especially among Bloomberg Grains Index heading for a However, with a positive outcome of year. headwinds may off set the positive industrial and platinum group metals. record low close. the US-China talks almost fully priced in The minister is playing it safe with this impact of production cuts. Continued investor appetite for global This comes after the May CBOT Wheat and the dollar grinding higher we see comment to make sure that the market Macroeconomic uncertainties still stocks was led by strong markets in contract dropped hard in response to the risk of a short-term pullback to test refrains from selling oil in response to exist but the drumbeat of worsening Asia, not least in China. weak US export sales amid continued support. rising US shale production and before economic data has so far been diff icult Central bank and government action stiff competition from other producers Supporting the rally has been a recent the price-supportive tightness becomes to hear amid all the hype about the has in recent weeks provided market- and ahead of what is expected to be decline in copper stocks held at London visible in the data. potential positive impact of a trade supportive fiscal and monetary another bumper 2019 crop. Because of Metal Exchange-monitored warehouses In addition, Russia’s Energy Minister deal. stimulus. this weakness, the premium to corn hit to the lowest since 2005. While this has Alexander Novak was out saying that We suspect that most of the positive These developments have supported a contract low of just 86 cents/bushel – created a sense of tight supply, we have Russia has cut output by close to impact of a deal has been priced in, a 28% surge in the CSI 300 index since well below the one-year average at 155 simultaneously seen a strong increase 150,000 barrels/day and that it will particularly considering that global the beginning of January. Adding to cents/bushel. in deliverable stocks at the Shanghai reach its 228,000 b/d target by early stocks have returned to their pre-trade the bullish sentiment last week was Precious metals suff ered from the shadow. The combination of the Futures Exchange. April. war levels – an unsustainable height confirmation from the MSCI that it will aforementioned risk appetite across continued rally in palladium and a HG Copper is showing signs of The extent to which Opec has cut given the raised recession risk currently raise the weight of Chinese stocks in its other assets with gold seeing its record discount to gold has helped consolidation and with that the risk production in recent months was seen emerging across the world. global emerging markets index. biggest weekly decline since November. attract renewed (speculative) demand. of a short-term reversal towards the in the monthly production survey Despite supportive fundamentals, as Strong US data helped send yields A combination of continued demand During the past two weeks, the discount highlighted area below $2.8650/lb. carried out by Bloomberg. supply tightens we see the short-term higher and the Japanese yen to a 10- for stocks, a stronger dollar, rising US to gold has collapsed by more than $80 Crude oil experienced a roller-coaster In February production from its risk of a deeper correction than the week low at ¥112 to the dollar, thereby bond yields and the recent rejection to $440/oz. week at the hands of another Trump members slumped by 560,000 barrels/ one seen post- the Trump tweet. Just supporting the risk-on sentiment. US at $1,350/oz all helped attract profit- The white metal is not facing the same tweet and continued supply cuts from day to 30.5mn barrels/day, a near four- like gold has broken its uptrend, the inflation expectations, meanwhile, taking. amount of strong resistance that has the Opec+ group of producers. year low. same could happen to Brent crude continued to climb higher towards 2%, After reaching a six-year high on helped trigger profit-taking in gold. The recent rally in WTI and Brent Speculators increased bullish Brent on a break below $65.30/bbl. This raising some early warning signs that January 31, total holdings in bullion- Gold has gone looking for support crude oil towards $60/b and $70/b crude oil bets by 10.7k lots to 275k would potentially create a period of the market’s dovish belief in no further backed ETFs have since seen a after breaking the uptrend from respectively once again caught the lots in the week to February 19. Seven consolidation with support at $64/b US rate hikes may be challenged sooner continued decline throughout February. November. attention of President Trump. weeks of buying, however, began to and ultimately $60/b being tested. rather than later. While gold’s six-month rally showed The first level of support at $1,300/oz is In a tweet last Monday, he once again show signs of fading with fresh short- So far, these developments (especially signs of pausing, platinum has picked followed by the more important $1,275/ went after Opec and asked the cartel selling emerging last week despite the  Ole Hansen is head of commodity in China) have led to speculation about up the baton to emerge from gold’s oz – a level that represents the January to “take it easy” on production cuts, technical break above $64/b witnessed strategy at Saxo Bank. Gulf Times Monday, March 4, 2019 7 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Solidarity Saudi Takaful Co 16.00 -0.50 90,379 Specialities Group Holding C 69.00 -2.82 51,500 Arabia Falcon Insurance Co 0.12 0.00 - Amana Cooperative Insurance 13.82 -1.29 6,547,058 Abyaar Real Eastate Developm 16.50 -1.79 3,256,705 Aloula Co 0.53 0.00 - Alabdullatif Industrial Inv 11.70 0.69 30,396 Kgl Logistics Company Kscc 41.10 -0.48 1,286,057 Al-Omaniya Financial Service 0.16 -2.44 219,832 Saudi Printing & Packaging C 16.24 -0.37 82,999 Combined Group Contracting 308.00 0.65 8,380 Al-Hassan Engineering Co 0.02 0.00 - Saudi Paper Manufacturing Co 12.12 0.83 574,066 Jiyad Holding Co Ksc 68.00 0.29 10,001 Al-Fajar Al-Alamia Co 0.75 0.00 - Alinma Bank 24.24 0.41 5,522,223 Boubyan Intl Industries Hold 0.00 0.00 - Al-Anwar Ceramic Tiles Co 0.09 0.00 476,956 Almarai Co 53.80 -0.19 375,216 Gulf Investment House Ksc 43.60 -0.68 159,048 Al Suwadi Power 0.09 0.00 - Falcom Saudi Equity Etf 33.40 0.91 206,759 Boubyan Bank K.S.C 547.00 0.37 108,291 Al Sharqiya Invest Holding 0.09 -1.16 171,819 United International Transpo 29.45 0.51 719,083 Ahli United Bank B.S.C 250.00 0.81 9,272,119 Al Maha Petroleum Products M 0.86 0.00 100 Hsbc Amanah Saudi 20 Etf 30.60 0.00 33 Osos Holding Group Co 106.00 0.00 59,510 Al Maha Ceramics Co Saoc 0.19 0.00 - QATAR Saudi International Petroche 20.06 0.10 225,541 Al-Eid Food Ksc 75.00 0.00 5,000 Al Madina Takaful Co Saoc 0.09 -3.37 82,000 Falcom Petrochemical Etf 32.50 0.00 30 Qurain Petrochemical Industr 375.00 0.00 65,109 Al Madina Investment Co 0.03 0.00 - Company Name Lt Price % Chg Volume Walaa Cooperative Insurance 24.20 1.77 107,199 Ekttitab Holding Co Sak 18.90 0.00 165,600 Al Kamil Power Co 0.38 0.00 - Bank Al-Jazira 16.20 0.75 1,421,763 Real Estate Trade Centers Co 31.90 4.25 2,601 Al Jazerah Services -Pfd 0.55 0.00 - Zad Holding Co 120.00 0.00 - Al Rajhi Bank 100.80 0.40 1,662,631 Acico Industries Co Kscc 170.00 0.00 41,500 Al Jazeera Steel Products Co 0.28 0.00 - Widam Food Co 62.90 -1.43 24,427 Samba Financial Group 36.85 1.10 558,219 Kipco Asset Management Co 75.30 0.00 5,000 Al Jazeera Services 0.12 -0.83 7,000 Vodafone Qatar 8.21 0.24 249,605 United Electronics Co 61.90 1.98 153,694 National Petroleum Services 1,040.00 0.97 1,000 Al Izz Islamic Bank 0.09 0.00 - United Development Co 13.84 0.65 2,002,437 Allied Cooperative Insurance 22.20 -0.72 107,572 Alimtiaz Investment Group 123.00 0.00 171,343 Al Buraimi Hotel 0.88 0.00 - Salam International Investme 4.44 -3.48 35,198 Malath Insurance 11.80 -1.50 1,782,425 Ras Al Khaimah White Cement 79.90 0.00 11,000 Al Batinah Power 0.09 0.00 - Qatar & Oman Investment Co 5.80 0.00 135 Alinma Tokio Marine 15.94 0.76 245,822 Kuwait Reinsurance Co Ksc 136.00 0.00 4,000 Al Batinah Hotels 1.13 0.00 - Qatar Navigation 67.50 3.05 9,877 Arabian Shield Cooperative 18.70 1.19 128,624 Kuwait & Gulf Link Transport 91.90 -0.11 112,091 Al Batinah Dev & Inv 0.09 0.00 1,120 Qatar National Cement Co 62.00 0.00 420 Savola 31.55 -0.79 239,326 Humansoft Holding Co Ksc 3,020.00 0.67 161,831 Al Anwar Holdings Saog 0.09 -2.15 6,914 Qatar National Bank 188.20 -0.37 500,389 Wafrah For Industry And Deve 15.10 -0.53 49,956 Automated Systems Co Kscc 118.00 0.00 260 Al Ahlia Insurance Co Saoc 0.35 0.00 - Qatar Islamic Insurance 55.46 0.11 834 Fitaihi Holding Group 10.90 0.00 42,815 Metal & Recycling Co 36.00 0.00 30 Ahli Bank 0.14 0.00 1,100 Qatar Industrial Manufactur 41.00 0.27 10,863 Tourism Enterprise Co/ Shams 31.20 -1.27 268,719 Gulf Franchising Holding Co 0.00 0.00 - Acwa Power Barka Saog 0.66 0.00 - Qatar International Islamic 70.35 1.94 127,939 Sahara Petrochemical Co 16.00 0.25 568,045 Al-Enma’a Real Estate Co 33.00 -1.20 1,552 Abrasives Manufacturing Co S 0.05 0.00 - Qatari Investors Group 24.55 0.20 9,745 Herfy Food Services Co 49.80 1.22 164,880 National Mobile Telecommuni 730.00 -2.28 401 A’saff a Foods Saog 0.60 0.00 - Qatar Islamic Bank 145.20 -0.89 198,533 Saudi Ind Investment Group 24.90 -0.40 112,948 Unicap Investment And Financ 74.50 0.00 443,800 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Gas Transport(Nakilat) 20.00 -0.74 189,134 Salama Cooperative Insurance 16.08 0.50 158,381 Al Salam Group Holding Co 30.20 -1.95 11,100 Qatar General Insurance & Re 40.00 0.00 - Emaar Economic City 9.57 -1.24 988,898 Al Aman Investment Company 48.50 0.00 260,000 Qatar German Co For Medical 6.37 -2.75 8,432 Alahli Takaful Co 27.80 1.28 113,952 Mashaer Holding Co Ksc 73.00 0.00 61,290 Qatar Fuel Qsc 188.00 0.80 34,227 Anaam International Holding 12.44 0.00 105,101 Manazel Holding 27.00 0.00 54,010 Qatar First Bank 4.06 1.00 154,229 Saudi Telecom Co 99.60 0.20 239,618 Tijara And Real Estate Inves 49.40 0.00 131,525 Qatar Electricity & Water Co 176.50 -1.94 71,351 Al Alamiya Cooperative Insur 32.10 -0.16 10,233 Jazeera Airways Co Ksc 740.00 0.14 144,970 Qatar Exchange Index Etf 101.80 0.00 109 Saudi Industrial Services Co 12.28 5.14 3,690,347 Commercial Real Estate Co 91.20 0.22 11,000 Qatar Cinema & Film Distrib 17.94 0.00 - Al-Ahsa Development Co. 10.04 0.20 146,123 National International Co 62.90 -5.98 161,900 Al Rayan Qatar Etf 24.50 0.00 - National Co For Glass In/The 18.06 0.11 13,879 Taameer Real Estate Invest C 27.10 -1.09 234,984 Qatar Insurance Co 33.50 1.21 390,791 Dur Hospitality Co 20.54 1.68 759,687 Gulf Cement Co 68.00 4.62 100 Ooredoo Qpsc 66.99 -0.01 108,980 Tabuk Cement Co 12.26 1.32 187,221 Heavy Engineering And Ship B 385.00 0.00 69,201 UAE National Leasing 8.48 0.36 19,309 Sasco 15.80 1.15 247,198 National Real Estate Co 78.10 -0.13 198,700 Mazaya Qatar Real Estate Dev 7.00 -1.96 202,909 Saudi Cement 57.30 1.24 45,157 Al Safat Energy Holding Comp 32.20 0.00 20,200 Company Name Lt Price % Chg Volume Mesaieed Petrochemical Holdi 17.50 -0.91 910,381 Aseer Trading Tourism & Manu 9.49 0.96 166,309 Kuwait National Cinema Co 1,000.00 0.00 613 Al Meera Consumer Goods Co 154.50 -0.25 34,841 Nama Chemicals Co 26.30 -3.13 484,788 Danah Alsafat Foodstuff Co 38.00 2.15 300 Waha Capital Pjsc 1.42 -2.07 88,458 Medicare Group 66.55 0.83 26,926 Saudi Arabian Mining Co 55.20 0.91 330,645 Independent Petroleum Group 417.00 2.71 59 United Insurance Company 2.00 0.00 - Mannai Corporation Qsc 49.00 -4.24 8,319 Yanbu Cement Co 29.00 3.57 150,741 Kuwait Real Estate Co Ksc 55.80 -0.89 421,088 United Arab Bank Pjsc 1.20 0.00 - Masraf Al Rayan 36.90 -0.81 466,493 Saudi Fisheries 66.60 -0.15 216,170 Salhia Real Estate Co Ksc 338.00 0.00 245,200 Union National Bank/Abu Dhab 5.47 -1.97 1,598,261 Al Khalij Commercial Bank 10.71 -0.83 46,180 Ash-Sharqiyah Development Co 50.80 -0.39 57,396 Gulf Cable & Electrical Ind 383.00 0.79 20,627 Union Insurance Co 0.90 0.00 - Industries Qatar 133.00 -1.40 205,262 Makkah Construction & Devepl 75.60 -0.53 34,849 Kuwait Finance House 0.00 0.00 - Union Cement Co 0.00 0.00 - Islamic Holding Group 20.99 -0.85 7,320 Al Jouf Cement 8.00 0.25 233,176 Gulf North Africa Holding Co 54.30 1.88 402,100 Umm Al Qaiwain General Inves 0.97 0.00 - Investment Holding Group 5.16 -0.58 44,126 Abdullah A.M. Al-Khodari Son 4.38 1.15 2,415,153 Hilal Cement Co 91.00 0.00 57,000 Sudatel Telecome Group Ltd 0.36 0.00 - Gulf Warehousing Company 41.99 1.18 51,418 Knowledge Economic City 9.51 0.11 272,029 Osoul Investment Kscc 60.10 0.00 5,421 Sharjah Islamic Bank 1.20 0.00 1,140,353 Gulf International Services 14.07 1.66 127,703 Al-Ahlia Cooperative Insuran 12.30 -0.97 411,148 Gulf Insurance Group Ksc 661.00 0.00 1,890 Sharjah Insurance Company 2.84 0.00 - Ezdan Holding Group 13.00 -1.89 1,096,421 Al Rajhi Co For Co-Operative 76.70 2.54 663,539 Umm Al Qaiwain General Inves 69.20 0.00 228 Sharjah Group 1.00 0.00 - Doha Insurance Co 12.05 0.00 - Advanced Petrochemicals Co 55.40 -0.18 58,296 Aayan Leasing & Investment 49.00 -0.41 3,772,219 Sharjah Cement & Indus Devel 0.90 5.26 32,000 Doha Bank Qpsc 20.50 0.49 102,981 Al Babtain Power & Telecommu 20.70 -0.29 111,384 Alrai Media Group Co Ksc 63.00 0.00 17,093 Ras Al-Khaimah National Insu 2.90 0.00 - Dlala Holding 9.50 -2.76 5,352 Allianz Saudi Fransi Coopera 30.40 0.33 74,212 National Investments Co 92.60 -0.64 20,001 Ras Al Khaimah White Cement 1.08 0.00 - Commercial Bank Pqsc 40.10 -0.62 227,695 Najran Cement Co 8.40 0.60 421,216 Commercial Facilities Co 182.00 -0.55 20,000 Ras Al Khaimah Ceramics 2.00 1.01 23,581 Barwa Real Estate Co 39.60 1.54 326,503 Al Tayyar Travel Group 25.55 5.67 5,399,490 Yiaco Medical Co. K.S.C.C 76.50 0.00 9,300 Ras Al Khaimah Cement Co Psc 0.71 -9.87 54,910 Al Khaleej Takaful Group 9.04 0.00 400 National Commercial Bank 52.60 0.96 1,401,638 Munshaat Real Estate Project 97.50 -2.21 20,070 Ras Al Khaima Poultry 1.90 0.00 - Aamal Co 9.80 0.10 805,721 Noor Financial Investment Co 84.50 3.81 1,080,392 Rak Properties 0.46 -1.08 1,276,000 Al Tamdeen Investment Co 319.00 7.05 10 Ooredoo Qpsc 71.00 0.00 - KUWAIT Credit Rating & Collection 23.50 0.00 10 Oman & Emirates Inv(Emir)50% 0.50 0.00 - Ifa Hotels & Resorts Co. K.S 62.00 0.00 150 National Takaful Company 0.62 0.00 - SAUDI ARABIA National Marine Dredging Co 3.51 0.00 3,199 Company Name Lt Price % Chg Volume Sokouk Holding Co Sak 41.20 -1.20 127,150 Warba Bank Kscp 219.00 -0.45 2,847,462 National Investor Co/The 0.58 0.00 - Company Name Lt Price % Chg Volume Sultan Center Food Products 52.80 -0.19 118,750 Viva Kuwait Telecom Co 830.00 -1.07 29,116 National Corp Tourism & Hote 1.52 0.00 - Kuwait Foundry Co Sak 248.00 0.00 111,060 Mezzan Holding Co Kscc 428.00 -4.89 2,040,632 National Bank Of Umm Al Qaiw 2.96 0.00 - United Wire Factories Compan 15.94 -0.99 45,151 Kuwait Financial Centre Sak 99.00 0.00 195,860 National Bank Of Ras Al-Khai 4.30 0.00 - Etihad Etisalat Co 20.28 2.11 6,803,075 Ajial Real Estate Entmt 137.00 0.00 190,903 National Bank Of Fujairah 4.80 0.00 - Dar Al Arkan Real Estate Dev 10.52 -0.75 11,956,763 Kuwait Finance & Investment 35.00 -4.11 60,500 Methaq Takaful Insurance 0.71 0.00 - Alawwal Bank 16.64 0.24 144,873 National Industries Co Ksc 188.00 0.00 3,610 OMAN Manazel Real Estate Pjsc 0.42 0.71 1,257,000 Rabigh Refining And Petroche 20.06 0.91 1,021,248 Kuwait Real Estate Holding C 28.00 0.00 5,239 Invest Bank 2.49 0.00 - Banque Saudi Fransi 36.30 0.55 340,084 Company Name Lt Price % Chg Volume Securities House/The 51.20 -1.16 713,000 Intl Holdings Co Pjsc 1.01 -0.98 155,000 Saudi Enaya Cooperative Insu 13.72 1.18 986,630 Voltamp Energy Saog 0.00 Boubyan Petrochemicals Co 932.00 -0.21 45,000 0.21 - Insurance House 0.85 0.00 - Mediterranean & Gulf Insuran 14.96 -0.27 78,921 Vision Insurance Saoc 0.00 Al Ahli Bank Of Kuwait 301.00 0.33 4,883 0.14 - Gulf Pharmaceutical Ind Psc 1.60 0.00 - Saudi British Bank 36.75 0.68 96,502 United Power/Energy Co- Pref 0.00 Ahli United Bank (Almutahed) 305.00 0.66 496,611 1.00 - Gulf Medical Projects 1.50 0.00 - Red Sea International Co 15.56 -0.26 80,824 United Power Co Saog 0.00 National Bank Of Kuwait 882.00 0.92 2,331,902 3.30 - Gulf Cement Co 0.70 0.00 - Takween Advanced Industries 9.60 0.31 113,085 United Finance Co 0.00 Commercial Bank Of Kuwait 522.00 -0.57 2,525,678 0.09 - Fujairah Cement Industries 1.25 0.00 - Sabb Takaful 17.06 -0.23 32,860 Ubar Hotels & Resorts 0.00 Kuwait International Bank 293.00 1.03 3,426,051 0.13 - Fujairah Building Industries 1.19 0.00 - Saudi Arabian Fertilizer Co 81.90 -0.49 193,691 Takaful Oman 0.00 Gulf Bank 291.00 2.46 16,498,678 0.14 - Foodco Holding Pjsc 3.71 0.00 - National Gypsum 11.96 0.67 65,554 Taageer Finance 0.00 Al-Massaleh Real Estate Co 35.20 0.00 15,000 0.10 - First Abu Dhabi Bank Pjsc 15.16 -0.26 535,226 Saudi Ceramic Co 20.06 0.70 230,927 Sweets Of Oman 0.00 Al Arabiya Real Estate Co 30.70 -0.65 12,543 0.55 - Finance House 1.63 0.00 - National Gas & Industrializa 29.80 1.02 87,046 Sohar Power Co 0.00 Kuwait Remal Real Estate Co 45.60 -0.87 510,200 0.11 - Eshraq Properties Co Pjsc 0.44 0.46 8,082,115 Saudi Pharmaceutical Industr 26.75 0.38 181,420 Smn Power Holding Saog 0.00 A’ayan Real Estate Co Sak 62.80 -0.48 903,007 0.19 - Emirates Telecom Group Co 16.94 0.36 1,431,891 Thimar 24.06 0.25 87,625 Shell Oman Marketing - Pref 0.00 Investors Holding Group Co.K 12.10 -1.63 9,220,375 1.05 - Emirates Insurance Co. (Psc) 7.00 0.00 - National Industrialization C 16.48 -0.72 4,052,162 Shell Oman Marketing 0.00 Al-Mazaya Holding Co 61.00 2.35 3,687,941 1.16 - Emirates Driving Company 8.00 0.00 - Batic Investments And Logist 37.35 4.18 205,621 Sharqiyah Desalination Co Sa 0.00 Al-Madar Finance & Invt Co 159.00 -1.24 483,200 0.31 - Dana Gas 0.87 -2.90 16,657,492 Saudi Electricity Co 16.48 -0.24 742,736 Sembcorp Salalah Power & Wat 0.00 Gulf Petroleum Investment 31.70 -2.46 6,966,150 0.15 - Commercial Bank Internationa 0.70 0.00 - Saudi Arabia Refineries Co 41.60 0.48 105,523 Salalah Port Services 0.00 Mabanee Co Sakc 588.00 0.51 84,179 0.60 - Bank Of Sharjah 0.98 -0.10 3,000,000 Arriyadh Development Company 20.02 -0.20 308,774 Salalah Mills Co 0.00 Inovest Co Bsc 82.50 -2.83 35,000 0.68 - Axa Green Crescent Insurance 0.50 0.00 - Al-Baha Development & Invest 21.92 -0.63 676,679 Salalah Beach Resort Saog 0.00 Al-Deera Holding Co 18.00 -2.70 1,224 1.38 - Arkan Building Materials Co 0.47 -5.42 13,000 Saudi Research And Marketing 82.50 0.00 35,684 Sahara Hospitality 0.00 Mena Real Estate Co 46.90 -1.26 1,524,257 3.09 - Alkhaleej Investment 1.26 -7.35 26,250 Aldrees Petroleum And Transp 33.05 0.15 324,885 Renaissance Services Saog 0.00 Amar Finance & Leasing Co 0.00 0.00 - 0.33 402 Aldar Properties Pjsc 1.79 0.56 7,035,974 Saudi Vitrified Clay Pipe Co 48.30 -1.02 1,934 Raysut Cement Co -5.14 United Projects For Aviation 545.00 0.00 110 0.33 155,744 Al Wathba National Insurance 12.76 0.00 - Jarir Marketing Co 149.00 0.68 75,434 Phoenix Power Co Saoc 2.17 National Consumer Holding Co 30.00 0.00 10,000 0.09 14,119,182 Al Qudra Holding Pjsc 0.80 0.00 - Arab National Bank 35.35 1.43 681,837 Packaging Co Ltd 0.00 Amwal International Investme 57.90 0.00 900 2.21 - Al Khazna Insurance Co 0.25 0.00 - Yanbu National Petrochemical 69.50 0.29 210,647 Ooredoo 0.36 Equipment Holding Co K.S.C.C 28.50 1.79 132 0.55 353,938 Al Fujairah National Insuran 300.00 0.00 - Arabian Cement 24.80 2.39 377,763 Ominvest 0.00 Arkan Al Kuwait Real Estate 78.00 0.00 44,000 0.35 - Al Dhafra Insurance Co. P.S. 3.55 0.00 - Middle East Specialized Cabl 11.80 0.17 85,126 Oman United Insurance Co -0.75 Gfh Financial Group Bsc 75.90 -1.68 1,550,951 0.27 70,000 Al Buhaira National Insuranc 1.99 0.00 - Al Khaleej Training And Educ 13.42 0.90 477,389 Oman Telecommunications Co 0.00 Energy House Holding Co Kscp 36.50 1.39 9,905 0.70 3,560 Al Ain Ahlia Ins. Co. 37.00 0.00 - Al Sagr Co-Operative Insuran 11.98 -0.17 95,439 Oman Refreshment Co 0.00 Kuwait Co For Process Plant 235.00 0.00 100 1.70 - Agthia Group Pjsc 3.72 -2.87 65,413 Trade Union Cooperative Insu 0.00 0.00 - Oman Qatar Insurance Co 0.00 Al Maidan Dental Clinic Co K 1,080.00 0.00 75 0.11 - Abu Dhabi Ship Building Co 1.00 0.00 - Arabia Insurance Cooperative 16.80 -1.06 391,772 Oman Packaging 0.00 National Shooting Company 16.30 0.00 60,001 0.27 - Abu Dhabi Natl Co For Buildi 0.40 -1.00 38,400 Saudi Chemical Company 32.60 -0.91 36,629 Oman Oil Marketing Company 0.00 Al-Ahleia Insurance Co Sakp 429.00 0.00 23,000 1.10 - Abu Dhabi National Takaful C 3.50 0.00 - Fawaz Abdulaziz Alhokair & C 21.60 1.89 1,004,637 Oman National Engineering An 0.00 Wethaq Takaful Insurance Co 32.00 -3.61 177,740 0.16 - Abu Dhabi National Oil Co Fo 2.21 -0.90 57,697 Bupa Arabia For Cooperative 90.70 1.45 91,344 Oman Investment & Finance -1.14 Salbookh Trading Co Kscp 38.50 -3.51 1,400 0.09 113,075 Abu Dhabi National Insurance 3.70 0.00 87,500 Wafa Insurance 9.50 0.00 - Oman Intl Marketing 0.00 Aqar Real Estate Investments 60.20 0.00 290,250 0.52 - Abu Dhabi National Hotels 3.00 -6.83 1,362 Jabal Omar Development Co 33.80 1.50 867,378 Oman Flour Mills -0.68 Hayat Communications 28.00 -6.98 60 0.58 60,300 Abu Dhabi National Energy Co 0.96 0.00 2,000 Saudi Basic Industries Corp 122.40 0.00 2,093,884 Oman Fisheries Co 0.00 Soor Fuel Marketing Co Ksc 116.00 0.00 61,856 0.06 307,950 Saudi Kayan Petrochemical Co 14.00 -0.99 7,121,060 Oman Europe Foods Industries 0.00 Tamkeen Holding Co 8.50 0.00 37,029 1.00 - Etihad Atheeb Telecommunicat 5.35 0.00 - Oman Education & Training In 0.00 Burgan Co For Well Drilling 110.00 0.00 120 0.23 - Co For Cooperative Insurance 58.90 0.86 54,610 Oman Chromite 0.00 BAHRAIN Kuwait Resorts Co Kscc 61.50 -0.97 162,750 3.64 - National Petrochemical Co 26.90 -0.55 128,529 Oman Chlorine 4.28 Oula Fuel Marketing Co 116.00 0.00 38,688 0.39 15,975 Gulf Union Cooperative Insur 13.98 4.95 49,563 Oman Ceramic Company 0.00 Palms Agro Production Co 41.10 0.00 4,426 0.42 - Company Name Lt Price % Chg Volume Gulf General Cooperative Ins 12.80 0.00 78,837 Oman Cement Co 1.05 Mubarrad Holding Co Ksc 74.40 -0.13 242,988 0.29 166,193 Basic Chemical Industries 22.76 -0.96 87,636 Oman Cables Industry 0.00 Zain Bahrain Bscc 0.09 -2.25 29,000 Shuaiba Industrial Co 200.00 0.00 15 0.98 4,680 Saudi Steel Pipe Co 24.56 -0.57 363,181 Oman & Emirates Inv(Om)50% 0.00 United Paper Industries Bsc 0.00 0.00 - Aan Digital Services Co 16.30 -3.55 1,154,000 0.10 - Buruj Cooperative Insurance 22.12 -0.27 123,957 Natl Aluminium Products 0.00 United Gulf Holding Bsc 0.00 0.00 - First Takaful Insurance Co 44.50 0.00 1,800 0.34 - Mouwasat Medical Services Co 75.90 -0.91 76,676 National Real Estate Develop 0.00 Solidarity Bahrain Bsc 0.00 0.00 - Kuwaiti Syrian Holding Co 50.50 -0.98 100,050 5.00 - Southern Province Cement Co 42.75 2.03 67,515 National Pharmaceutical 0.00 Seef Properties 0.23 0.00 47,200 National Cleaning Company 62.70 -2.03 5,000 0.00 - Maadaniyah 17.56 -0.23 39,361 National Mineral Water 0.00 National Bank Of Bahrain Bsc 0.70 0.72 4,952 United Real Estate Company 60.00 0.00 36,800 0.10 - Yamama Cement Co 14.16 1.29 376,257 National Life & General Insu 0.00 Nass Corp Bsc 0.10 0.00 322,520 Agility 827.00 0.73 156,189 0.29 - Jazan Energy And Development 13.74 1.03 146,878 National Gas Co -0.41 Khaleeji Commercial Bank 0.07 0.00 95,000 Kuwait & Middle East Fin Inv 49.50 4.43 1,074,004 0.24 24,515 Zamil Industrial Investment 18.50 1.54 16,365 National Finance Co 0.00 Ithmaar Holding Bsc 0.08 0.00 150,000 Fujairah Cement Industries 57.10 0.00 16,982 0.14 - Alujain Corporation (Alco) 24.14 1.77 306,561 National Detergent Co Saog 0.00 Investcorp Bank -$Us 9.70 0.00 5,000 Livestock Transport & Tradng 183.00 0.00 2,658 0.70 - Tabuk Agricultural Developme 10.50 0.96 317,666 National Biscuit Industries 0.00 Gulf Hotel Group B.S.C 0.00 0.00 - International Resorts Co 20.90 0.00 101 3.92 - United Co-Operative Assuranc 11.86 0.34 192,550 National Bank Of Oman Saog 0.00 Gfh Financial Group Bsc 0.26 1.96 502,000 National Industries Grp Hold 166.00 0.00 909,788 0.19 - Qassim Cement/The 38.70 0.78 58,096 Muscat Thread Mills Co 0.00 Esterad Investment Co B.S.C. 0.12 0.00 125,000 Warba Insurance Co 63.00 8.25 100 0.08 - Saudi Advanced Industries 13.90 -1.28 429,552 Muscat Insurance Co Saog 0.00 Eskan Bank Realty Income Tr 0.09 0.00 20,000 First Dubai Real Estate Deve 37.10 -2.37 21,604 0.80 - Kingdom Holding Co 8.57 1.78 259,585 Muscat Gases Company Saog -2.70 Bmmi Bsc 0.79 0.00 67,100 Al Arabi Group Holding Co 70.00 0.00 13,000 0.18 11,744 Saudi Arabian Amiantit Co 6.03 -1.15 853,234 Muscat Finance -1.14 Bbk Bsc 0.51 0.00 40,000 Mobile Telecommunications Co 457.00 0.88 598,164 0.09 70,000 Al Jouf Agriculture Developm 22.50 1.35 83,122 Muscat City Desalination Co 0.00 Bahrain Telecom Co 0.33 0.61 111,995 Eff ect Real Estate Co 19.00 0.00 100 0.12 - Saudi Industrial Development 8.38 0.84 343,610 Majan Glass Company 0.00 Bahrain National Holding 0.00 0.00 - Tamdeen Real Estate Co Ksc 339.00 12.62 200 0.18 - Riyad Bank 22.44 0.63 584,616 Majan College 0.00 Bahrain Kuwait Insurance 0.32 0.00 437,169 Al Mudon Intl Real Estate Co 25.00 -10.39 54,500 0.19 100 The National Agriculture Dev 27.40 0.92 196,492 Hsbc Bank Oman 0.00 Bahrain Islamic Bank 0.12 0.00 13,000 Kuwait Cement Co Ksc 346.00 0.00 4,386 0.12 - Halwani Bros Co 44.85 0.45 14,196 Hotels Management Co Interna 0.00 Bahrain Duty Free Complex 0.77 -1.91 10,000 Sharjah Cement & Indus Devel 85.00 0.00 5,000 1.25 - Arabian Pipes Co 10.70 -0.19 353,794 Gulf Stone 0.00 Bahrain Commercial Facilitie 0.92 0.00 3,000 Kuwait Portland Cement Co 1,240.00 0.00 160 0.12 - Eastern Province Cement Co 24.30 1.25 149,497 Gulf Mushroom Company 0.00 Arab Banking Corp Bsc-$Us 0.46 0.00 25,000 Educational Holding Group 328.00 0.00 26,000 0.31 - Al Gassim Investment Holding 12.18 3.22 1,517,927 Gulf Investments Services -2.99 Aluminium Bahrain Bsc 0.42 0.00 11,000 Asiya Capital Investments Co 34.10 -0.87 8,904 0.07 95,000 Filing & Packing Materials M 33.60 0.45 81,737 Gulf Invest. Serv. Pref-Shar 0.00 Albaraka Banking Group 0.34 0.00 170,555 Kuwait Investment Co 123.00 -0.81 177,426 0.11 - Saudi Cable Co 45.80 -1.08 438,133 Gulf International Chemicals 0.00 Al-Salam Bank 0.09 0.00 1,246,415 Burgan Bank 316.00 1.94 3,373,990 0.16 - Tihama Advertising & Public 46.90 -0.85 345,209 Gulf Hotels (Oman) Co Ltd 0.00 Ahli United Bank B.S.C 0.83 0.61 603,562 Kuwait Projects Co Holdings 192.00 0.52 78,376 9.50 - Saudi Investment Bank/The 18.62 0.87 171,243 Global Fin Investment 0.00 Al Madina For Finance And In 23.00 -0.86 125,751 0.08 50,000 Astra Industrial Group 15.72 -0.38 31,458 Galfar Engineering&Contract -2.33 Kuwait Insurance Co 400.00 0.00 20,000 0.08 107,030 Saudi Public Transport Co 15.28 1.46 871,226 Galfar Engineering -Prefer 0.00 Al Masaken Intl Real Estate 66.00 6.11 30 0.39 - Taiba Holding Co 28.30 0.35 36,336 Financial Services Co. 0.00 Intl Financial Advisors 22.50 -1.75 459,614 0.18 - Saudi Industrial Export Co 81.70 -0.85 194,907 Financial Corp/The 0.00 First Investment Co Kscc 36.90 0.82 1,271,414 0.10 - Saudi Real Estate Co 12.72 0.16 330,071 Dhofar Tourism 0.00 Al Mal Investment Company 18.50 -2.12 577,504 0.49 - Saudia Dairy & Foodstuff Co 101.20 -0.78 58,686 Dhofar Poultry 0.00 Bayan Investment Co Kscc 44.20 -5.96 97 0.18 - National Shipping Co Of/The 31.05 2.31 1,530,138 Dhofar Intl Development 0.00 Egypt Kuwait Holding Co Sae 420.00 0.00 378,000 0.29 - Methanol Chemicals Co 9.81 0.00 803,019 Dhofar Insurance 0.00 Coast Investment Development 39.00 0.52 316,243 0.17 - Chubb Arabia Cooperative Ins 18.20 -0.33 42,376 Dhofar Generating Co Saoc 0.00 Privatization Holding Compan 61.00 -1.61 286,600 0.21 - Mobile Telecommunications Co 9.54 0.21 4,643,569 Dhofar Fisheries & Food Indu 0.00 Injazzat Real State Company 86.00 -4.44 6,100 1.28 - Saudi Arabian Coop Ins Co 11.28 -0.18 149,722 Dhofar Cattlefeed 0.00 Kuwait Cable Vision Sak 13.10 -47.60 14 0.07 - Axa Cooperative Insurance 23.32 0.95 180,073 Dhofar Beverages Co 0.00 Sanam Real Estate Co Kscc 31.20 -6.59 100,000 0.26 - Alsorayai Group 12.90 -0.77 456,277 Construction Materials Ind 0.00 Ithmaar Holding Bsc 22.90 -2.97 753,944 0.03 - Bank Albilad 28.95 -0.34 608,058 Computer Stationery Inds 0.00 Aviation Lease And Finance C 284.00 0.00 15,035 0.26 - Al-Hassan G.I. Shaker Co 8.29 0.48 115,840 Bankmuscat Saog 1.45 Arzan Financial Group For Fi 28.70 -0.35 367,898 0.42 528,123 Wataniya Insurance Co 23.60 -0.42 38,201 Bank Sohar 0.00 Ajwan Gulf Real Estate Co 17.30 -1.14 260,000 0.12 - Abdullah Al Othaim Markets 67.10 0.60 106,196 Bank Nizwa -3.30 Kuwait Business Town Real Es 46.90 -0.21 127,000 0.09 46,500 Hail Cement 8.32 0.97 251,288 Bank Dhofar Saog-Rts 0.00 Future Kid Entertainment And 99.80 1.32 866 0.00 - Saudi Re For Cooperative Rei 7.98 0.76 489,199 Bank Dhofar Saog 0.15 0.00 - LATEST MARKET CLOSING FIGURES Gulf Times Monday, March 4, 2019 13 BUSINESS

Richard Plepler, who helped create some of TV’s most memorable programmes over three decades at HBO (left), said on Thursday he plans to step down as CEO of the premium cable network. David Levy (right), president of Turner Broadcasting, announced his departure on Friday morning. AT&T shake-up sends two of its top media executives packing

Bloomberg WarnerMedia and will announce additional under the new structure. The former public- the actor Jeffrey Wright, who appeared in the he reminisced about joining the company at age Los Angeles steps in the next week or two, said two of the relations executive joined HBO in 1992 and network series Westworld, and David Simon, 24. people, who asked not to be identifi ed because helped turn it into a jewel of the cable-TV in- creator of The Wire. But he was never a natu- He helped create The Match, a head-to-head the decisions aren’t public. dustry. After ascending to the role of co-pres- ral fit with his new bosses at AT&T. golf showdown between Tiger Woods and Phil ichard Plepler and David Levy, two of the AT&T plans to consolidate networks such as ident and then CEO, he oversaw hits including “Richard is one of the most successful ex- Mickelson that aired across AT&T’s proper- most powerful executives in US media, TNT, TBS and HBO in one division, and is in “Game of Thrones” and “Silicon Valley,” and ecutives in our industry and I have been fortu- ties last fall. He’d also begun Turner’s foray Rare leaving their posts at WarnerMedia talks with longtime TV executive Bob Green- shepherded the network’s push into online TV. nate to have his support over the last months,” into sports betting, inking a deal with Caesars as new boss AT&T Inc overhauls the entertain- blatt to run that business, according to the peo- HBO has added 40mn subscribers during Ple- WarnerMedia CEO John Stankey said in a state- Entertainment Corp that made the casino op- ment business it bought last year. ple. pler’s six-year reign as CEO, including nearly ment. “His vision, energy and passion helped erator the presenting sponsor of all gambling Plepler, who helped create some of TV’s most The phone company had to hold off on 8mn online. to elevate HBO’s brand to what it has become programming across Turner. The Information memorable programs over three decades at changes until it beat back an attempt by the US Plepler’s reach extends far beyond HBO. He today.” website previously reported on Levy’s depar- HBO, said on Thursday he plans to step down Justice Department to unwind the $85bn deal. is a fi xture on the New York media scene and Levy, 55, is a major figure in the sports ture. as chief executive offi cer of the premium cable Plepler had communicated his plans to leave a political fundraiser who sits on the boards of business world, having negotiated long-term AT&T plans to cull staff , unifying certain network. Levy, president of Turner Broadcast- several months ago, the people said, but agreed the New York Public Library and the Council on broadcast-rights deals with leagues such back-offi ce functions and investing any cost ing, announced his departure on Friday morn- to stay on until the case was resolved. Foreign Relations. as the National Basketball Association, the savings into new production. Stankey also is ing. Jeff Zucker, head of WarnerMedia’s CNN di- The well-tanned, eloquent media baron is NCAA men’s basketball tournament, the PGA developing a new streaming service under the “Hard as it is to think about leaving the com- vision, is expected to oversee Turner Sports as as comfortable hobnobbing with senators and of America and Major League Baseball. leadership of Kevin Reilly. pany I love, and the people I love in it, it is the part of the restructuring, the Wall Street Jour- journalists as he is with movie stars and fi lm- “Turner has been a signifi cant part of my life “We’ve created a great and unique enter- right time for me to do so,” the 60-year-old nal reported. makers. and I will watch from the sidelines as this com- prise,” Plepler said in the memo. “And I know Plepler said in a memo to staff . Plepler, who had enjoyed almost-complete His departure prompted an outpouring of pany continues to produce more amazing mo- that you will protect its legacy and do all to en- AT&T is in the process of reorganising autonomy, didn’t wish to surrender control sadness from creative partners, including ments,” Levy said in a memo to staff , in which hance its future in the years to come.” Gulf Times 14 Monday, March 4, 2019 BUSINESS Automakers seek to electrify Geneva car show, fight off gloom

AFP already suff ering from the ongoing trade war 81.9mn individual cars sold — or three million vehicles to limit the damage,” Neuvy said, in Europe. And French automakers Renault and Paris between Washington and Beijing, and are wary fewer than in 2017. As a result, factories were pointing out sales of diesel-fuelled cars are Peugeot will present the latest reincarnations of about increased tariff s the US might slap on struggling, with overcapacity estimated at “well sliding quickly as sales of petrol-fuelled vehicles, popular city cars like the Clio and the Peugeot European imports. above five million units.” which emit more CO2, rise. 208, with the latter available for the first time in The Geneva Motor Show kicks off this week On top of such tensions, car makers have also “The good times that we have known for the At the same time, people are still drawn to gas- an electric version. with automakers eager to show off new been pushed to pump huge investments into past decade are behind us,” agreed Flavien guzzling SUVs, which currently account for one Despite the constraints, the Geneva show electric models, even as they nervously eye electrifying their fleets in order to respect strict Neuvy, head of the Observatoire Cetelem, in three vehicles sold. remains a draw for luxury automobile a horizon coloured by trade wars and Brexit CO2 emissions standards that will take eff ect in which conducts economic surveys in the global The models going on show in Geneva reflect enthusiasts and is unlikely to disappoint in terms uncertainty. the EU next year and be further tightened in the automotive industry. industry concerns, with a wide range of concept of glitz and glamour. After years of growth and record profits, the coming decade. Automakers, he said, are at high risk of being hit electric vehicles on display from middle-class Bentley will present its new Bentayga Speed, sector took a sharp U-turn in mid-2018 amid an Following the tough conditions of 2018, with heavy fines in Europe as of next year, when car makers like Citroen and Honda, which will which has been categorised as the fastest unexpected slowdown in China, which is by far manufacturers of cars and auto equipment strict emissions limits that require a company’s present their visions of a far more battery- SUV in the world, capable of reaching 306 the world’s biggest market, counting one out of “will see slim profits in 2019,” said Ferdinand entire fleet to emit no more than 95 grams (3.4 powered future. kilometres per hour (190 mph). Lamborghini’s three registered cars on the planet. Dudenhoeff er, who heads the Center for ounces) of CO2 on average per vehicle, kick in. At the same time, high-end brands like Aston new sleek Huracan Evo Spyder and Porsche’s And with just three weeks to go before Britain Automotive Research (CAR) in Germany. These targets, he said, are “almost impossible Martin, Audi and Mercedes will be showing off 911 are also expected to turn heads, as is to leave the European Union on March 29, car “We can already expect profit warnings, to keep.” concept electric SUVs. is Ferrari’s F8 Tributo, with its powerful makers are bracing for the very likely possibility production reductions and job cuts,” he told AFP. A recent study by the BCG consultancy They are scrambling to catch up with Californian 720-horsepower engine. of a “no-deal Brexit”, which is expected to spell “This is not a good climate for a show filled with estimated that each car maker stands to be hit electric car maker Tesla, which won’t be present More than 660,000 visitors are expected to cataclysm for the industry. glitz and glamour.” with between 500mn and €1bn ($570mn to at the show, but will weigh heavily on everyone’s descend on Geneva’s Palexpo from March 7 The automakers heading for Europe’s biggest After a one-percent drop last year, he predicted $1.1bn) in fines. mind at a time when its Model 3 sedan — already through 17 to cast their eyes over some 900 annual car show, which opens on March 7, are the global car market would slip 2% in 2019 to “They will really need to sell a lot of electric a best-seller in the United States — is revving up vehicles.

UK fi rms VW straddles old and new in report weakest electric buggy, Passat face-off growth since April Bloomberg Frankfurt 2013: CBI olkswagen AG’s delicate bal- ancing act between the old and Reuters Vnew automotive eras will be on London full display this week at the Geneva car show, where a fun-loving electric beach buggy will share the limelight ritish businesses reported with the trusty Passat sedan. their weakest growth in VW’s I.D. Buggy concept combines Bnearly six years during the battery power with styling reminiscent past three months due to fears of of carefree days tearing around Cali- a no-deal Brexit and rising glo- fornia sand dunes, tapping a retro fl air bal trade barriers, the Confed- similar to the I.D. Buzz minibus. Behind eration of British Industry said the revival of the Beetle-based Meyers yesterday. Manx buggy lies a deeper message: VW The CBI’s index of private- can, and probably will, build almost sector activity over the past any type of model off its new electric three months dropped to -3 in vehicle platform, dubbed MEB. February from zero in January. The world’s largest car maker plans This was its lowest since April to roll out 50 battery- only models by 2013, when Britain was still re- 2025, and winning over consumers to covering from the global fi nan- these vehicles is critical for VW to make cial crisis. its €44bn ($50bn) investment in electric Firms expected similar weak- vehicles pay off . To help spread the costs ness in the three months ahead, of its aggressive transition away from when Britain is due to leave the combustion vehicles, VW is in talks European Union after over 40 about sharing the underpinnings with years of membership. other manufacturers like Ford Motor Co. Prime Minister Theresa May While the I.D. range heralds the fu- has yet to win parliament’s sup- ture, the updated Passat sedan and port for a Brexit transition deal al- wagon tell the tale of its past. On sale though she has paved the way for a since the 1970s — with lifetime deliv- possible delay to Brexit beyond its eries nudging 30mn vehicles — one of scheduled date of March 29. VW’s best-selling models has come “More and more companies under pressure as consumer tastes shift are hitting the brakes on invest- to sport utility vehicles. ment and day-to-day business While the eighth iteration could decisions are becoming increas- turn out to be its last hurrah, VW can ingly problematic,” the CBI’s ill-aff ord to have the Passat falter too chief economist, Rain Newton- quickly. With 2017 sales of more than Smith, said. 660,000 vehicles, including its Chi- A survey last week showed nese sibling Magotan, the mid-level manufacturers stockpiled goods sedan is needed to help fund electric- by the most on record for any big car development. advanced economy as they pre- “The Passat has been a classic in pared for the possibility of bor- Europe for years, but the segment as der delays after Brexit. a whole has come under quite some The Bank of England predicts pressure,” said Stefan Bratzel from the Britain’s economy will grow by Center of Automotive Management just 0.2% in the three months to near Cologne, Germany. A 1964 Volkswagen Beetle is displayed during AutoMobility LA ahead of the Los Angeles Auto Show on November 29, 2018. Behind the revival of the Beetle-based March and growth in 2019 to be “Demand for mid-sized sedans and Meyers Manx buggy lies a deeper message: VW can, and probably will, build almost any type of model off its new electric vehicle platform, dubbed MEB. the weakest since 2009, even if station wagons won’t fall to zero, but Brexit goes smoothly. costs are going to play a very central duction from Germany to a low-cost ries” like the Buggy, VW said in a state- hicles. French brand Peugeot caused product range spanning more than 300 Britain’s trading partners role going forward.” factory in eastern Europe around 2022 ment, without committing to a pro- a stir with the E-Legend, resembling vehicles across the 12 brand group. It’s in Europe are facing weaker To prop up Passat sales, VW is add- to bolster profi tability and make room duction version. Just some 250,000 of its classic 504 coupe from 1969, while betting the styling revival works better growth too, due to trade ten- ing a limited R-Line sports edition for electric vehicles that’ll be made at the squat vehicles were built worldwide Concern Kalashnikov JSC, maker of for next-generation technology. sions between the United States as well as techy gadgets like partially its domestic sites. during their peak era in the 1980s. the AK-47 assault rifl e, came up with The beach cruiser “demonstrates and China that have hurt global automated driving at any speed and a The fi rst car based on VW’s MEB The German manufacturer isn’t a battery-powered incarnation of the how a modern, non-retro interpreta- manufacturers. smart steering wheel that detects when platform, the I.D. Neo hatchback, will alone in injecting past pizzazz into its Soviet Union bestseller Izh-Kombi. tion of a classic can look and, more than The CBI survey was based on the driver touches it. The car will also roll off assembly lines at the end of this future lineup as automakers seek to VW’s nostalgic moments have had anything else, the emotional bond that responses from 650 businesses be available as a plug-in hybrid version. year. The technology will “facilitate the draw in consumers skeptical of the high their limits. It axed the Beetle revival electric mobility can create,” VW de- in retail, manufacturing and VW is also pondering a shift of pro- development of low-volume niche se- costs and limited range of electric ve- last year in a push to trim a bloated sign head Klaus Bischoff said. services. Brexit casts shadow over stands at Geneva car show

Automakers showcase cars which may makers have put in place to cope with a no-deal in China, the world’s biggest autos market, a its profi ts if there is a “bad Brexit deal”, which Honda’s plant closure announced last month face tariff s; Brexit due on March 29 but divorce. plunge in demand for diesel vehicles and costly would involve tariff s on cars of up to 10% and will not take place until 2021. could be delayed; some contingency plans “I’m sure I speak for most of the country investments in electric as well as self-driving between roughly 2% and 4% on components A delay to Brexit could also ruin some contin- scuppered if departure date changes when I say, we just want to get it done. cars. and engines. gency plans. We just want to know where we are and get Britain’s once booming car industry is al- Ford, which does not make cars in Britain but JLR, Honda and BMW’s Mini and Rolls-Royce Reuters on with it,” Andy Palmer, the chief executive ready recording drops in sales, investment and builds nearly 1.3mn engines there, has said a no- brands — together accounting for around 55% of London of British sports car maker Aston Martin, told output, with Japan’s Honda delivering the big- deal Brexit could cost up to $1bn. UK car output — all plan to shut down in April Reuters. gest blow so far by announcing plans to close its It fears delays and tariff s before the engines from between a week to up to a month in case of His company has said it will spend up to British factory. can be fi tted into vehicles in Germany, Turkey, any disruption from a no-deal Brexit. he usual mix of sports cars, off roaders £30mn ($40mn) on preparing for a potentially But car makers cannot suddenly stop plans the United States and elsewhere. Shutdowns are generally organised months in and family saloons will be on display at disorderly Brexit, including stocking more com- which have been years in the making. Ford also has the most exposed overseas advance so employee holidays can be scheduled Tthe Geneva motor show this week, but ponents and potentially fl ying in parts if ports British supercar maker McLaren will display plant, with nearly one in three cars rolling off and suppliers can adjust volumes, making them with one big diff erence from previous years — are clogged up. its Speedtail in Geneva, while fellow British the production line in its Cologne plant in Ger- hard to move. they may be about to become harder and costlier The stakes are high. luxury brand Bentley will show off the Bentayga many destined for Britain, the company’s third- The uncertainty leaves automakers grap- to make, and more expensive to buy. Britain is Europe’s second-biggest buyer of Speed and Aston Martin its Lagonda all-terrain largest market, according to researchers LMC pling to address a huge range of potential If Britain leaves the European Union on March cars and fourth biggest manufacturer, meaning concept vehicle. Automotive. problems, from recertifying models to invest- 29 without a withdrawal deal, all bets are off on disruption to supplies — and possible tariff s of Meanwhile, Japan’s Toyota has just begun Seven of the top 10 factories that export the ing in more pallets to transport German-made what will happen to the just-in-time produc- up to 10% on vehicles moving between Britain churning out its new Corolla car at its English highest volumes to Britain are in Germany, engines. tion system on which the European auto indus- and the European Union — will have repercus- factory. which itself is teetering on the edge of reces- “We can listen to the rhetoric of British poli- try relies, or to demand for vehicles across the sions across the industry. But others are staying away from Europe’s top sion. ticians saying ‘we’ll make the Dover port fl ow, continent. With less than a month to go, May is trying to car show. Ford said last month it would take “whatever we’ll let the stuff in’ but what they fail to real- And the situation has just got more compli- renegotiate a withdrawal deal with the EU that These include Britain’s biggest car maker Jag- action is necessary to preserve the competitive- ise is that for every time you bring in an engine, cated. British lawmakers have so far refused to ap- uar Land Rover (JLR), which is belt-tightening, ness of our European business.” you’ve got to send a pallet back to Germany,” Last week, British Prime Minister Theresa prove. and US manufacturer Ford, which is making But moving production can takes years, said Aston Martin’s Palmer. May raised the prospect of a short delay to The timing could hardly be worse for a car cuts to its European operations. meaning fi rms would have to manage a no-deal “If the French aren’t opening up their border, Brexit, potentially disrupting the plans that car industry already struggling with a slowdown JLR has said it faces a more than £1.2bn hit to Brexit, at least in the short term. very soon you run out of pallets.” Gulf Times Monday, March 4, 2019 15 BUSINESS Schwarzman dances to AI beat after $350mn gift to MIT

Bloomberg across the stage on his way to take a and responsible ways. A repeated theme adviser of the MIT Quest for Intelligence, an interview. “So when people ask, ‘Aren’t well as their parents. And the reason they New York photo with his wife, son and the president was the need for technologists to go into perused some of the posters in the you alive and awake now that people believe that is that’s correct,” Schwarz- of MIT, Rafael Reif. politics and policy. tent, where bacon strips and mini tacos have data sets and how are you using man said. “And it’s bigger than just that. The program was full of ego-pumping “MIT is going to be the anchor of what were off ered. One featured graphics them?’ The answer is that it is one of our It’s the fact that as a result of that, politi- Steve Schwarzman had just posed for for the Blackstone Group co-founder, we will know in society as public interest that reminded him of Scratch, the visual firms enduring competitive advantages, cally, things could end up occurring in a photograph in a room glowing in red designed around celebrating MIT’s new technology,” said Darren Walker, the programming language created by MIT from day 1 from our strategic plan.” the country that are very destabilising for light, and wanted to clarify his location college, named the Stephen A. Schwarz- president of the Ford Foundation. Media Lab’s Lifelong Kindergarten group. Schwarzman said he’s interested in how the entire economy, which would aff ect over the high-volume electronic music. man College of Computing for his MIT professor Neri Oxman — who’s ex- Schwarzman, 72, is drawn to artificial the new MIT college can keep the US everyone.” “I’m not at a disco,” he said. $350mn gift. pecting a child with husband Bill Ackman intelligence because it’s about identify- competitive, and outlined challenges. The eff ect would be dramatic, he added, Actually, it was almost 9am on Thursday “The gift you’ve given has ignited an — introduced her concept of “mothering ing problems and finding solutions in “Our financial system is in very good “if politically we end up going in areas in an auditorium of the Massachusetts explosion that will bring in billions,” nature by design” with materials like paradigm-shifting ways — something shape,” he said, with interest rates low that are untested here but have failed Institute of Technology (MIT), and the former Google CEO Eric Schmidt, now an shrimp shells and melanin. MIT’s Vivienne he says he enjoys doing himself. He also and financial institutions stronger with globally.” dark club atmosphere was apparently the MIT fellow, said in the late morning. “It’s Sze said she’s looking into an at-home relates to a discipline based on pattern tighter regulations. “The economic With so many thoughts to off er, it seemed way to ease people into a full day of talks, rare you get a founder with that kind of diagnostic tool for Alzheimer’s based on recognition, which he said humans have expansion should continue for quite worth asking: Is MIT going to be studying panels and poster sessions on artificial leverage.” eye movements recorded on a mobile been doing at Blackstone for years. some time.” the brain of Steve Schwarzman? intelligence. The new college will focus on preparing phone. Breyer Capital’s Jim Breyer said AI “The idea of building data sets and On the other hand, internal US politics are “Studying me is actually pretty worth- By the end of it, Schwarzman was ready students to use artificial intelligence and will “absolutely not replace doctors. employing them at our place has only an area of risk. “There are a lot of people less,” he said. “What they are studying is to disco With Ratatat playing, he danced computers to shape the future in ethical Two Sigma’s David Siegel, founding been 33 years old,” Schwarzman said in who don’t think they’re going to do as the brains of two-year-olds.”

WeWork cuts about 300 Amid bountiful jobs, US employees ahead of a layoff s also creep higher hiring binge Bloomberg AFP San Francisco Washington o-working giant WeWork Cos he US jobs engine has continued cut about 300 employees this to deliver for nearly a decade, Cweek, or roughly 3% of its Tputting more Americans back to workforce, in what it described as per- work and sending unemployment to a formance-related dismissals. historic lows. WeWork, which operates shared of- But, just over a year after Congress fi ce spaces around the world, suggested enacted sweeping corporate tax cuts the staff reductions were a small culling meant to jolt the economy, a shadow ahead of a hiring spree. A spokesman has crept into the picture: Layoff s are said the company has 10,000 employees also on the rise. and plans to add 6,000 this year. “Over While claims for unemployment the past nine years, WeWork has grown benefits remain low, major compa- into one of the largest global physical nies have begun to swing the axe even networks thanks to the hard work and as many enjoy the tax windfall and dedication of our team,” he said. solid profits, and are spending record The New York-based company, amounts of cash to buy back their founded in 2010, has attracted huge own stock from investors. piles of investor money, which it uses In February alone, layoffs were an- to snap up offi ce space in the largest nounced by PepsiCo, the video-gam- cities on earth. Its global march was ing giant Activision Blizzard and the temporarily impeded in 2016, when cosmetics marketer Avon. the company “cut” 7% of its work- General Motors enraged President force. A month later, Bloomberg re- Donald Trump in November by an- ported that WeWork had slashed some nouncing a 15% cut to its workforce of its fi nancial forecasts for the year while shuttering auto plants in the po- and were encouraging employees to litical battleground states of Ohio and fi nd ways to change the company’s Michigan. “spending culture.” Economists say tax cuts often fuel By the next year, WeWork was still investments like mergers and acqui- losing more than it was generating sitions, which frequently result in in revenue. Its loss in 2017 totalled job cuts — at least initially — as some $933mn on $886mn in sales, accord- workers become redundant. ing to documents related to the sale of Automakers, toy manufacturers, bonds rated as junk by credit agencies. banks, tech fi rms and telecommunica- But WeWork found a key ally that year tions giants are trimming their work- in SoftBank Group Corp. forces. Since 2017, WeWork has raised more Job cuts jumped 29% last year in than $10bn from SoftBank, a Japanese the wake of the tax reform to about conglomerate and WeWork’s closest 540,000, the highest in three years, investor, in a variety of deals involving according to Challenger, Gray & equity sales, convertible debt and war- Christmas, an outplacement fi rm that rants. That has put WeWork back on tracks staff reductions. the off ensive, especially in Asia, which And job cuts in January hit 44,653, Company representatives talk with job seekers during a job fair in Chicago (file). While claims for unemployment benefits remain low, major companies have begun to is driving growth for the business. higher than 20 of the prior 24 months, swing the axe even as many enjoy the tax windfall and solid profits, and are spending record amounts of cash to buy back their own stock from investors. Public investors haven’t shown as the fi rm reported. much enthusiasm for WeWork. The Despite the increase in layoffs, hit a rough patch in the near future or since 2000, according to fi nancial data professor of accounting at Stanford favoured the 2017 tax overhaul, ac- bonds are trading lower than their of- first-time claims for jobless ben- are seeing rising raw material costs, fi rm FactSet. University, said tax cuts sometimes knowledged that despite the lower fering price nearly a year ago. Still, efits have risen only slightly in recent John Challenger, the employment Edward Rice, a professor of fi nance have failed to produce the desired tax rates, businesses slowed their WeWork has said it’s open to an ini- months — suggesting the current US fi rm’s CEO, told AFP. at the University of Washington who outcome. investments in new equipment and tial public off ering in the near future. jobs market is so hot many laid-off But as more companies merge, more has studied the eff ect of tax cuts on A popular corporate tax cut in 2004 machinery in the later part of 2018, Showing it can rein in spending will workers find new jobs even before employees become redundant: com- corporate behaviour, told AFP his re- — intended to reward companies with something he called “very disap- be essential to selling the deal. To that they need to claim unemployment bined fi rms no longer need two de- search shows tax cuts tend to produce activity and workers in the United pointing.” end, WeWork said its sales in the fi rst insurance. partments to handle accounts payable, mergers and acquisitions that were States — actually caused some fi rms to But he said the number of layoffs half of last year were larger than losses. The economy created over 220,000 human resources or IT. more profi table. increase investment abroad while oth- by itself was not the best yardstick In January, SoftBank committed new jobs each month on average in “You see layoff s occur that aren’t re- He acknowledged those corporate ers reduced their US workforces, her for measuring the impact of the tax an additional $2bn to WeWork, in a 2018, up from about 180,000 in the ally about the slackening of business combinations could cut jobs initially, research showed. cuts. transaction that valued the business prior year. conditions,” Challenger said. but argued that over time healthier “The rhetoric was, we want to in- “The ultimate test is, do we see at $47bn. However, the amount was The reasons driving layoff s vary. “You don’t need full-scale vertical companies could hire more. crease jobs, we want to increase in- higher levels of investment that pro- far less than a privately discussed plan, Banking giant Wells Fargo an- operations in as many locations as “The idea of the merger is that vestment here in the US,” she told duce better productivity and wage in which the Japanese conglomerate nounced in September it was cutting banks get bigger and core functions somehow the fi rm’s going to get more AFP. growth?” he said. would pay $16bn for a majority stake. fi ve to 10% of its workforce as it fo- get moved to headquarters.” effi cient and grow faster. But “it can be quite diffi cult to get “We shouldn’t care which fi rm em- The reduced ambitions were driven cused more on internet banking. The value of mergers and acquisi- So there may be a saving in employ- those outcomes.” ploys somebody. partly by declines in tech stocks – es- And some fi rms shed workers be- tions in the United States jumped 17% ees now but a gain in employees later,” Douglas Holtz-Eakin, a prominent We should care that they are em- pecially SoftBank’s shares, which were cause they worry the economy could last year to $1.94tn, the second highest he said. However, Rebecca Lester, Republican economist in the US, who ployed at good and rising wages.” down about 20% at the time. Peugeot plans initially to sell imported vehicles in US

AFP Iran and the Chinese auto market has “No one under the age of 50 recalls earlier in this decade. US consumers this day fi gures prominently at other US could be a template for what hap- New York slowed considerably. seeing a Peugeot on the road,” Keller have tilted heavily towards sport utility races such as the 24 Hours of Le Mans pens with Peugeot. What kind of cars will be sold? What said, adding that 1970s reruns of the vehicles, pickups and other large vehi- in France. Fiat “bailed out at roughly the same will be the silhouette? Will Peugeot Peugeot-driving detective “Columbo” cles, which composed around 69% of The cars are tough to fi nd these days time that Peugeot bailed out and then ome 30 years after exiting the work through existing dealerships, an are not top of mind any more. the 17.3mn vehicles sold last year. in the United States. it came back into the market almost a United States due to plunging expensive proposition in some key cit- Peugeot plans initially to sell vehicles Peugeot can compete in these mar- The collector’s website Hemmings. decade ago and it’s never really gotten a Ssales, Peugeot is preparing a return ies, or sell directly to customers and in the US that are imported from China kets with models that have sold well com lists one 1987 505 GLS model for strong following,” Brauer said. to a market where it previously knew skip certain markets? and Europe. in Europe such as the 3008 and 5008 $6,495 in Nebraska. “I think it’s going to be a big chal- glory at the famed Indianapolis 500. For now, the automaker isn’t off ering “Yes we understand there’s tariff SUVs. Back in the day, Peugeot was known lenge for them.” PSA Group chief executive Carlos many details. discussions going on right now and so But the brand’s smaller sedan mod- for innovative engineering “but only by But Dominique said Jaguar Land Tavares said this week that the Peugeot “We believe we’re being frugal,” said forth,” Dominique said. “But the ex- els, which sell well in Europe, are deep- really car-savvy people — and main- Rover and Subaru were two examples — a brand known for its lion logo — is Larry Dominique, chief executive of pectation is we will initially import.” ly out of favour in America. stream American consumers probably of brands that had succeeded in carving the parent company’s pick for the US PSA North America. Peugeot plans to launch in a single Peugeot also could face tough com- didn’t know anything about them,” said out niche off erings in cars. market. “We believe we’re being very care- US state and will then ramp up. petition from new entrants, especially Ivan Drury of Edmunds.com. “The idea is to focus on customer The company plans to sell Peugeot ful and making sure that we do this the The company has identifi ed 15 US China, whose groups such as GAC, At this point, Peugeot has a “clean satisfaction and profi tability, not vol- autos in the US by 2026 in line with right way because new brands entering states and four Canadian provinces Great Wall and Kandi plan to market in slate” in the US, Drury said. umes,” Dominique said. “When the a multi-step 10-year plan fi rst an- the US and Canadian market does not that are especially receptive to imports. the US in the coming years. Italian brands Fiat and Alfa Romeo volume justifi es the investment then nounced in 2016. happen very often.” The company will explore US manu- Peugeot exited the United States in have had mixed success since being in- we will consider industrialisation.” The comeback is being devised as Auto experts say the ambitious plan facturing if there are volumes to justify it. 1991, having clearly been surpassed by troduced in the US a few years. Peugeot launched a car-sharing ap- PSA, which also sells cars under the will not be easy to execute. Peugeot faces myriad challenges to Japanese rivals. Sales of Fiats nosedived 43.8% in plication, Free2Move, in October in Citroen and Opel brands, faces pres- “I think Peugeot will struggle to get be successful in a market that is huge In that year, it sold 3,500 vehicles. 2018 to 15,521, while Alfa Romeo’s sales Washington, DC. sure from investors to diversify its rev- back into the US market,” said longtime but also already saturated with some Peugeot vehicles triumphed at the dipped 0.6% to 23,800. The cars for now are General Motors enues beyond Europe at a time when US industry consultant Maryann Keller.”It 40 brands and looks to be stable at best Indianapolis 500 three times in the Karl Brauer of Kelley Blue Book vehicles, but Peugeot is working to have sanctions have torpedoed ambitions in will be expensive and take years.” in overall sales after a series of records early 20th Century and the brand to warned that Fiat’s performance in the its own models used. Monday, March 4, 2019 GULF TIMES BUSINESS

SMEs & ENTREPRENEURSHIP OUTLOOK Working capital gap

By Yanick Latil untangible but painful financial element. That brings us to the roots of the busi- ness and how important it is to evaluate “Sales are growing but I have no cash to conservatively the working capital needs order new products”, “We have contracts and allocate the required capital before with big organisations but we could not starting the machine and say hello to the cover salaries”, “We need another loan, first customer. the landlord called again for the bounced The most common mistakes for compa- cheques”… nies starting business in terms of working How many times we hear this from small capital evaluation are: companies having great ideas and cus- 1) Not allocating a single QR to a working tomers knocking at their door? Business capital need, thinking the only invest- failures could present several causes for ment required is the purchase of the which lack of capital is one very com- fixed assets and the payment of the first mon. The Gulf region with its oil and gas month’s of salary: “I have already people resources present a high revenue per interested in my product, why we will not capita facilitating the injection of capital. get the sales?” However the problem is precisely not a ers allow longer payment terms to the 2) More conservative approach, in addi- lack of funds available but an inadequa- company, funding indirectly part of its tion of the amount of fixed assets and tion of the equity allocated to fuel the operations. other investments, to allocate capital to specific business. A typical issue of suc- A key element to increase the perform- fund a working capital need based on a cessful businesses failing is the underes- ance of a business is by optimising its rule of thumb of six months of the op- timation of working capital needs to run working capital needs: looking to sell with erating result being the revenues minus the operations. an upfront payment or shorter delays pro- operating expenses (not including any Working capital remains an abstract viding a discount, minimising the amount non-cash expense as the depreciation). specific expiry date and fixed reimburse- Clearly the proposal is not to over- authorised. Once the company is running, concept for people who see account- of inventory provided that the risk of rup- That sounds right….. but the conserva- ments, which is not compatible: Someday invest and fund as much as possible the seasonal working capital peaks could ing as an annoying mystery, being the ture of stock or spare parts unavailability tive rule of thumb come from markets we need to pay also the bank no? in equity which would impact strongly be optimised recurring to bank loans, amount of cash required to transform a remains manageable or capitalising on where customers pay at 30-45 days So what to do? There are no magical the expected return on investment. The being a complement to the equity already service or product until it become cash supplier longer payment terms. and do not have practice of forgetting solutions to that, just to apply common objective is just to take the measures and injected and funding the permanent again. We buy materials, pay rent, salaries, This clearly depends on the context of payments, leaving the business with no sense, evaluate closely the cycle and cash plan the necessary cash that could be working capital. produce a good or sell a service until the each business, what competitors off er cushion. needs of the business and to be prudent/ required, avoiding running out of cash Next time you will open a business think funds paid by the customer acquiring our at customer or supplier level and on the 3) Foolproof solution, funding the total realistic without to compromise taking an suddenly or calling urgently all investors what would happen if your customer good or service are transferred into the strategy of the company. Working Capital amount of working capital but… with a adequate level of business risk. Ideally, to to inject again capital unexpectedly in the forget to pay or your materials costs company’s bank accounts. This cash need optimisation remains mainly applied on bank loan. In this case we take the meas- build the business evaluation in a simple company (Investors do not like surpris- increase suddenly: do not let your good is strongly increased when customers more mature businesses while a general ures to finance the total working capital calculation sheet where few tests could es…). The total amount of equity could be idea stop working because of lack of have a long time to pay or the company manager of a new business or start-up but we increase dramatically the risk of be done to measure the potential working calculated and agreed with shareholders capital. requires a high amount of inventories to is running behind the customers and for the business. The working capital remain capital needs based on more conservative in advance and just to call the necessary perform its activity. On the other hand, good reasons will not even think to listen a permanent cash need during the whole or stressful business assumptions and cash having an option to call for any ad-  Yanick Latil is managing partner of this cash need is relieved when suppli- to its finance manager to optimise this life of the business, while the loan has a projections. ditional amount based on the total capital Y&S Consulting LLP.

JRE expands portfolio in Turkey with three Ooredoo, Dell EMC launch key luxury projects

Just Real Estate (JRE) an- the city and can live life in the nounced yesterday the addition comfort of their villa, which of three luxury properties combines luxury and aesthet- smart stadium solution for people looking to invest ics with a perfect architectural in the most lucrative Turkish approach. landscape. JRE chairman Nasser al-Ansari One of these most influential said: “We are proud to present properties is only 10 minutes an expansive range of mixed-use away from the Atatürk Airport, properties to our fellow Qataris for global mega events combining residential, service who are looking to invest in apartments, hotel, and off ice Turkey – a land of burgeoning living with its unique archi- opportunities. While in the past, oredoo and Dell EMC we’re showcasing how tech- tectural sensibilities, and has we have successfully presented launched a smart sta- nology can allow fans, players, been awarded ‘Best Mixed-use many luxury boutique proper- Odium demo to transform and media worldwide to focus Project’ by the European Prop- ties in the Turkish landscape, mega events around the world on what matters most – en- erty Awards. The project options these new additions will further during last week’s Mobile World joying a world class sporting range from 1+0 to 5+1 duplexes, augment our already estab- Congress. event.” off ering every type of high- lished luxe portfolio. The technology titans have Visitors to the Ooredoo quality social opportunity. “These properties truly symbol- developed smart stadium tech- stand experienced a live demo Another boutique project ise the futuristic haven that peo- nology that aims to maximise of a key component of the se- is located on the Historical ple dream of possessing. These the safety and security of ath- curity solution – object detec- Peninsula along with the Sultan properties strictly adhere to our letes and coaches, fans, media, tion – which uses deep learn- Ahmed Mosque, Topkapı Palace, vision of off ering sustainable and organisers at Qatar’s soc- ing techniques and a specially and Hagia Sophia Museum. real estate development in Qatar cer tournament in 2022 and configured ‘neural network’ to With its authentic restoration and overseas. This is the just the additional mega events world- detect and track potentially of the historical buildings and start of a great year for us, as wide. hazardous objects. low-rise architectural approach we have many more projects in The smart stadium solution Qatar country manager Ghas- preserving the region’s historical the off ing to satiate the growing combines the speed, capac- san Kosta said: “Fans are more character, the living spaces of needs of our esteemed clients ity, and reliability of Ooredoo’s connected than ever before. By the future are being built inside and help them choose their industry-leading 5G network combining Ooredoo’s 5G tech- the past as residence flats, perfect residential property.” with Dell EMC’s deep learning nology with Dell EMC’s inno- hotel-serviced apartments, and Year-on-year, JRE said it has been capabilities to deliver enhanced vations, mega-event organis- commercial units. strengthening its residential and security. ers can integrate the ecosystem The last of three is a project commercial real estate portfolio, As the fi rst country to demo of staff , vendors, and fans for tucked into the pine forests of and has become a favoured ha- the solution, Qatar can acceler- real-time decision-making to Istanbul’s prized Çekmeköy ven for people looking to invest ate its digital transformation, as enhance fan safety. Our partner- district. At this property, one can in impressive properties in Qatar well as strengthen its position as ship can also expand the smart enjoy nature without leaving and other global destinations. a hub for global events. Ooredoo stadium experience across mo- expects to roll-out the solution bile ticketing, concessions, and across its markets in the Middle Dignitaries from Ooredoo and Dell EMC at the Mobile World Congress held last week. loyalty programmes.” East, North Africa, and South The solutions being developed East Asia. CCTV footage and analysed by learning, and video analytics Qatar ascends the world stage will not only benefi t Qatar’s soc- By using camera-enabled computers – all within seconds technology from Dell EMC to in mega events, our partner- cer tournament in 2022 but will drones to patrol venues, mega- – to spot hazards such as dan- identify potentially dangerous ship with Dell EMC combines also be invaluable for all large event organisers can record and gerous objects and potential dis- objects in real time, giving all the strengths of both companies events in the future, presenting transmit high-defi nition video turbances. stakeholders of events the abil- to ensure that Qatar is a world Ooredoo with the opportunity footage via Ooredoo’s secure 5G The system also utilises mul- ity to respond promptly. leader in smart stadium and to expand the off ering across its Three luxury properties are on offer for people looking to network to local data centres. ti-cloud, edge computing, arti- Ooredoo Qatar COO Yousuf mega-event safety and security. geographic footprint and other invest in the most lucrative Turkish landscape. Here, the data is combined with fi cial intelligence and machine Abdulla al-Kubaisi said: “As “At Mobile World Congress, parts of the world.

Nakilat achieves British Safety Council’s five-star grading for second year in a row

Nakilat has achieved a ‘Five-star’ grading following its recent five star occupational health and safety audit conducted by the British Safety Council (BSC). This is the second consecutive year that Nakilat has received the ‘Five-Star’ grading, which Members of the commission discussing topics, which included ICC draft opinions, issuance of guarantee clauses by banks, is the highest available rating that can and Incoterms 2020, amongst others. be achieved in the audit. The British Safety Council’s Five Star Occupational Health and Safety Audit ICC Qatar hosts ‘Banking Commission’ meeting assesses organisations’ Safety Man- agement System against a worldwide The International Chamber of Commerce Qatar (ICC Qatar) held ICC Qatar Banking Commission vice-chairman Ghassan Azar benchmark of current best practices. Nakilat has achieved a ‘Five-star’ grading following its recent five star its first ‘Banking Commission’ meeting for the year at the Qatar presided over the meeting, in the presence of representatives from Nakilat underwent a detailed, quanti- occupational health and safety audit by the British Safety Council. Chamber headquarters on Wednesday, it was announced in a the majority of banks in Qatar. fied and objective evaluation of statement. Azar highlighted the importance of the upcoming ‘ICC Banking its occupational health and safety ‘Sword of Honour’ award by the British the company’s safety initiatives which ICC Qatar director of International Relations and Chamber Aff airs Commission Annual Meeting 2019’ that will be held from April 8 management system, and had its per- Safety Council, following its achieve- place great emphasis on occupational Sheikha Tamader al-Thani provided updates regarding ongoing to 11 in Beijing. He noted that it is a unique gathering of banking formance measured against a number ment of the maximum ‘Five Star’ health and safety, employee well-being, meetings with the parties concerned related to the use of the inter- executives and government off icials from more than 65 countries of key best practice indicators. grading. Nakilat chief executive off icer and enhances our safety culture. nationally accepted ICC Uniform Rules on Demand Guarantees 758 to rethink the future of trade finance, encourage governments, The audit specification includes the five Abdullah al-Sulaiti said, “At Nakilat, “Finally, I would like to express my sin- when issuing guarantees. regulatory bodies, and G20 leaders, and to remove obstacles to best practice indicators of leadership, safety is a core value and is the corner- cere appreciation to the British Safety She said: “The Banking Commission meeting is an important trade finance and stimulate economic growth and job creation. stakeholder engagement, risk manage- stone of our operations. We are deeply Council for their guidance and support opportunity to consider the latest issues relevant to the banking Other topics include the increasing prominence of digitalisation ment, organisational health and safety committed to providing shipping and towards this achievement and to our industry. Some of the topics discussed included ICC draft opinions, within the trade finance sector, the ongoing changes in regulatory culture and continual improvement. maritime services in a safe, reliable and employees for their eff orts in achieving issuance of guarantee clauses by banks, and Incoterms 2020 and compliance requirements and the growing interest from both In December 2018, Nakilat received the eff icient manner. We all are proud of and maintaining such results”. amongst others.” banks and customers in supply chain finance methods.