OPEC WOES | Page 2 JAPAN DATA | Page 4 Libya oil Business output at confi dence 4-year high at 3-yr peak

Tuesday, July 4, 2017 Shawwal 10, 1438 AH BRIGHT OUTLOOK: Page 16 US factory activity GULF TIMES jumps to near 3-year high, construction BUSINESS spending fl at QSE sees higher foreign

Sheikh Hamad: Successful national. Vodafone Qatar appoints investment prospects Sheikh Hamad new COO Vodafone Qatar announced yesterday the appointment of Sheikh Hamad bin Abdullah al-Thani as the company’s chief operating off icer. Sheikh Hamad joined Vodafone Qatar in 2013 as senior business develop- despite economic blockade ment manager; in 2014 he was made head of Public Sector Sales and in 2016 Investors from UK and Hong Kong explore roadshows across the globe in a bid to attract Doha Bank had said its proposed ETF carries a took over the role of sales director ETF, commodities fund with bourse more foreign investments by highlighting various fee, or expense ratio, of 0.5%, one of the lowest in looking after Enterprise Sales and reforms in the fi nance sector, including a higher the emerging markets off erings. Mega Projects. By Santhosh V Perumal up to 49% foreign ownership limits. The indicative per unit value of ETFs has been Under his leadership, Vodafone’s enter- Business Reporter Already the QSE is getting ready to list two fi xed at one-hundredth of the previous day’s prise market share grew substantially ETFs – sponsored by Doha Bank and Masraf Al close of the respective indices, it is learnt. as did the company’s position as an ICT Rayan – which are expected to make their debut The ETFs provide investors with exposure to and mega projects service provider. otwithstanding the economic blockade, on the bourse in the second half of this year. the index benchmark with a single trade and its “I’d like to congratulate Sheikh Hamad the Qatar Stock Exchange (QSE) has wit- Two more companies are slated to be listing pricing would be a function of the indices. on his appointment as chief operating Nnessed increasing investment prospects with the debut of Investment Holding Group, The proposed ETFs off er not only an expanded off icer, a role in which he will play a from the UK and Hong Kong for exchange trade the fi rst family business in the country to go portfolio but also give investors a “viable” strat- key part in the future growth and suc- fund (ETF) and commodities fund respectively. public through maiden off er, expected to happen egy to grow with the market at “considerably” cess of the company. I am especially Investors from both the countries have had dis- soon. lower costs. pleased to see a successful national cussions with Qatar’s bourse in this regard, which “We are ready when they (two domestic ETFs) The move to launch ETFs comes in view of an who has proved his capability have a according to QSE chief executive Rashid bin Ali are ready,” he said. The ETFs are now working on analysis of 300 individual portfolios undertaken prosperous career in Vodafone,” said al-Mansoori, is a show of strength for the bourse seed funding. by the QSE in which it found that the portfolios Vodafone Qatar CEO Ian Gray. and the overall domestic economy. The Masraf Al Rayan ETF, which will track the underperformed the index. Before joining Vodafone, Sheikh “Even amidst this crisis, we received calls from 17-stock Al Rayan Islamic index, will be managed Stressing that the current economic block- Hamad held multiple roles in the oil (an) investor in the UK to create an ETF,” he said by Al Rayan Investment Company, a subsidiary ade has not dented the QSE’s attractiveness, al- and gas sector in the fields of indus- without naming the entity. of the bank; while the Doha Bank ETF, which will Mansoori said, “We are still having international trial network/cyber, automation and Ever since the QSE was upgraded to emerging track the 20-stock Qatar Index, have Amwal and interests.” control system engineering. He holds a market by MSCI, Standard & Poor’s-Dow Jones Group Securities as fund manager and liquidity “There was a request from a Hong Kong inves- bachelor’s degree in computer science and FTSE Russell, the bourse has undertaken provider respectively. tor to work on commodities product,” he added. Al-Mansoori: Show of strength for QSE. from the faculty of engineering at the University of Ottawa in Canada. Qatar shares rebound on strong buying support Abu Dhabi Airport sees slower passenger growth By Santhosh V Perumal the last few minutes, thus settling the by 1.05% to 2,541.88 points and the The GCC (Gulf Cooperation The banks and financial services Business Reporter index 114 points higher against the Al Rayan Islamic Index by 0.44% to Council) individuals’ net selling fell sector’s trade volume plummeted 41% Etihad Airways’ hub Abu Dhabi Inter- previous close. 3,503.19 points. considerably to QR7.01mn against to 3.84mn stocks, value by 38% to national Airport expects a slowdown in Islamic stocks were seen gaining The telecom index soared 4.86%, QR27.73mn on July 2. QR124.02mn and deals by 12% to 1,566. the pace of passenger growth this year, The Qatar Stock Exchange yesterday slower than the main index and other followed by insurance (3.88%), However, local retail investors’ The consumer goods sector reported the acting chief executive of operator rebounded with more than 65% of its indices in the bourse, where foreign consumer goods (1.27%), banks and net profit-booking increased to a 33% shrinkage in trade volume Abu Dhabi Airports said yesterday. traded stocks extending gains, after and domestic institutions continued financial services (1.09%), industrials QR49.01mn compared to QR41.6mn to 0.33mn shares, 25% in value to The UAE’s second busiest commercial the siege countries extended the to be net buyers albeit with lesser (0.21%) and real estate (0.09%); while the previous day. QR19.84mn and 24% in transactions airport expects to handle “around deadline by 48 hours to meet their intensity. transport fell 0.71%. The GCC institutions’ net selling to 313. 25mn” passengers in 2017 compared 13-point demand. Market capitalisation grew 1.13%, or Major gainers included Ooredoo, Gulf increased marginally to QR16.72mn The industrials sector’s trade volume with 24.5mn in the previous year, Six of the seven sectors, notably more than QR5bn, to QR482.51bn as International Services, QNB, Qatar against QR15.75mn on Sunday. tanked 18% to 0.76mn equities, value Abdul Majeed al-Khoori told Reuters telecom and insurance, witnessed micro, large, mid and small cap scrips Insurance, Commercial Bank, Doha Domestic institutions’ net buying by 25% to QR42.88mn and deals by by phone. strong buying, which resulted in the gained 1.5%, 1.24%, 0.74% and 0.29% Bank, Masraf Al Rayan, Mesaieed weakened significantly to QR29.42mn 10% to 621. That would represent growth of around 20-stock Qatar Index surge 1.3% to respectively. Petrochemical Holding, Qatar Islamic against QR41.01mn on July 2. The market witnessed a 2% fall in 2% compared with 5.1 % in 2016. 8,936.52 points as Qatar’s Foreign Although net selling by non-Qatari and Insurance, Mazaya Qatar, Barwa, Non-Qatari institutions’ net buying fell the telecom sector’s trade volume to “This has been a tough year for avia- Minister HE Sheikh Mohamed bin Gulf individuals weakened, there was United Development Company, perceptibly to QR49.97mn compared 1.7mn stocks but on a 24% rise in value tion globally but for the region as well,” Abdulrahman al-Thani arrived in higher net profit-booking pressure Woqod, Qatari German Company to QR69.84mn the previous day. to QR24.28mn and 10% in transactions an Abu Dhabi Airports spokeswoman Kuwait to present the country’s from local retail investors and Gulf for Medical Devices and Medicare Total trade volumes fell 31% to to 326. said. “We have seen some slowdown response. institutions. Group. Gulf Warehousing, Ezdan, 9.83mn shares and value by 26% to However, the transport sector’s trade in the growth of the airlines that use Micro and large cap segments saw Trade turnover and volumes were Qatar Electricity and Water, Qatari QR290.71mn, while deals rose 6% to volume expanded 17% to 0.7mn shares Abu Dhabi Airport, we also have the re- stronger buying interests in the on the decline in the bourse, where Investors Group and QIIB were among 4,388. and value by 20% to QR16.47mn on gional political situation, these factors market, whose year-to-date losses banking, realty and telecom sectors the losers. There was a 43% plunge in the real more-than-doubled deals to 555. are all playing into the slightly slower were contained at 14.37%. together accounted for about 78% of Non-Qatari retail investors’ net profit- estate sector’s trade volume to The insurance sector saw a 9% growth.” The pace of growth at rapidly Recovering from initial losses, the the total volumes. booking weakened substantially to 2.12mn equities and 30% in value to increase in trade volume to 0.36mn expanding Middle Eastern airlines has market was on a consistent gaining The Total Return Index rose 1.3% to QR6.69mn compared to QR25.73mn QR38.88mn but on a 43% increase in equities, 23% in value to QR24.33mn slowed this year against a more chal- path with strong buying, especially in 14,986.01 points, the All Share Index on Sunday. transactions to 827. 89% in transactions to 180. lenging economic backdrop.

Qatar banks assert control, Total signs Iran’s 1st global energy cool speculation over riyal

Reuters riyal to poor liquidity among foreign deal since the sanctions eased Dubai banks as well as speculation. But at onshore banks, not much has changed; the central bank is continu- Bloomberg Dubai-based consultant Qamar En- he Qatari riyal rose back to near ing to provide them with ample sup- Tehran ergy. It “also gains the Iranians some its peg to the US dollar yes- plies of dollars for commercial purpos- diplomatic cover from both France Tterday as local banks returned es at a rate of up to 3.6415 under its peg and China in the event of attempts from a week-long holiday and domi- mechanism, commercial bankers said. ran signed a formal contract with to impose further sanctions,” he said, nated the market, cooling speculation For many countries, the emergence Total to develop its share of the referring to antagonism to Iran ex- that economic sanctions might strain of a gap between rates quoted by on- Iworld’s biggest natural gas fi eld pressed by some US government of- the peg. shore and off shore traders has sig- – the fi rst investment in the country fi cials, including President Donald Last week, with Qatari banks were nalled a severe shortage of foreign cur- by an international energy company Trump. closed for fi ve days of Eid al-Fitr holi- rency and an eventual devaluation. since sanctions were eased last year. Iran holds the world’s largest gas days. Yesterday, however, Qatari banks Qatar’s case is diff erent. Most of its The 20-year deal with National reserves, estimated by BP at 1,183tn were back in the market and once more foreign income comes from oil and gas Iranian Oil Co and China National cubic feet (33tn cubic metres), and accounting for most activity. The riyal industries controlled by the govern- Petroleum Corp to develop phase 11 of is the third-biggest oil producer in changed hands at 3.6415 in the after- ment, which can ensure that dollar the South Pars off shore gas fi eld rep- the Organisation of Petroleum Ex- noon, after trading in a range of 3.6371 supplies are remitted home. resents the “fi rst of many” projects porting Countries. The producer to 3.7331 earlier in the day. And the hundreds of billions of dol- for Total in Iran, chief executive of- is wooing companies such as To- QNB, the Gulf’s biggest listed bank, lars in its sovereign wealth fund would fi cer Patrick Pouyanne said yesterday tal, Royal Dutch Shell and Russia’s was providing indicative quotes for the cover more than a decade of imports. at a signing ceremony in Tehran. Total Iranian Oil Minister Bijan Namadar Zanganeh (centre right) looks on as Patrick Lukoil to invest in its oil and gas riyal at 3.6405/25, unchanged from The Qatar Central Bank republished will be operator of the project, with Pouyanne (left), chairman and CEO of Total, and Ezzatollah Akbari, managing fields to boost output. Its oil pro- levels before the economic blockade on a statement yesterday saying the riy- the fi rst phase estimated to cost the director of Petropars Group, sign the off shore gas field agreement in Tehran duction climbed 33% last year af- Qatar erupted in early June. al’s exchange rate is stable and that it partners about $2bn. Iran’s Oil Min- yesterday. ter sanctions related to its nuclear “The market is refl ecting reality would guarantee all exchange transac- ister Bijan Namdar Zanganeh put the programme were eased in January again,” said one Qatari banker, who at- tions for customers inside and outside overall value of the contract at about The agreement is “a big deal” for companies to sign contracts” with the 2016, according to data compiled tributed last week’s low rates for the the country. $5bn. Iran and “will open the door for more country, said Robin Mills, the head of by Bloomberg. Gulf Times 2 Tuesday, July 4, 2017 BUSINESS

Etisalat Nigeria chairman resigns Libya oil output at after $1.2bn ‘debt talks collapse’

4-year high adds Reuters stake at nil value. Lagos “The biggest mistake the company made was taking a loan in dollars,” one of the Etisalat Nigeria chairman company sources told Reuters. Hakeem Belo-Osagie has “It sounded like a good idea at resigned after talks to first.” renegotiate a $1.2bn loan Rival MTN, Nigeria’s biggest pressure on Opec collapsed and prompted a telecoms firm, had been major foreign shareholder to sourcing loans in dollars but Crude production said to exceed 1mn exit the telecoms company, two decided to switch to naira, one bpd; output is highest since June company sources told Reuters. of the sources, who had worked 2013, adding pressure on Opec Etisalat Nigeria is the biggest for the South African firm, said. foreign-owned victim of dollar In 2015 Etisalat started to cut Bloomberg shortages plaguing the country down dollar payments but it Cairo due to lower oil prices and was late, the sources said. economic recession, leaving the It restructured its business, company struggling to make slashed jobs and sold off its ibya’s oil production has climbed repayments to lenders and towers to IHS Towers, the to more than 1mn bpd for the fi rst suppliers. mobile phone tower managers, Ltime in four years, further compli- Abu Dhabi state investment and leased them back but also cating Opec’s struggle to regain control fund Mubadala, which had a linked payments to dollars. of the oil market. 40% stake in Etisalat Nigeria, The original loan was a The North African country is pumping pulled out of the country’s seven-year facility to refinance 1.005mn bpd, according to a person with fourth-largest mobile operator a $650mn loan and fund direct knowledge of the situation, who by market share after it failed expansion of Etisalat Nigeria’s asked not to be identifi ed because they to restructure the loan with network. aren’t authorised to speak to the media. Nigerian banks, the central bank The company missed payments That would be the highest since June said in June. in February after sharp falls 2013, when Libya pumped 1.13mn bpd, The sources said the lenders in the Nigerian naira bloated according to data compiled by Bloomb- had retained Etisalat Nigeria the loan’s value, making erg. chief executive Matthew repayments diff icult. The increase adds to the challenge Wilshire but that talks continued A former Etisalat employee that the Organization of Petroleum on the use of the brand. said the telecoms firm had Exporting Countries and other major Wilshire told Reuters by contracted global accountancy producers face after agreeing in May to phone that he was in the off ice firm PwC to manage staff salary extend their output-cuts deal to coun- yesterday and that his contract payments for the past three ter a supply glut and slippage in prices. was with the Nigerian firm. months. Nigerian regulators Libya, like Nigeria, is exempted from Talks of Mubadala leaving have said they want to protect the cuts deal, though its oil production Nigeria started last year, one of Etisalat’s 4,000 workers and and exports remain vulnerable to dis- the sources said, adding that would hold talks with lenders ruptions by armed factions and restive the fund and parent company and IHS Towers as well as other workers. Handout picture shows production facilities of German oil firm Wintershall in the Libyan desert. Libya’s oil production has climbed UAE’s Etisalat had been suppliers. Libya’a output has rebounded from to more than 1mn bpd for the first time in four years, further complicating Opec’s struggle to regain control of the oil market. unhappy with the performance They tried to prevent lenders only 690,000 bpd at the start of the year, of the Nigerian business. placing the telecoms firm in with Sharara, the country’s largest oil ter, Jan Edelmann, commodities analyst 270,000 bpd, a person familiar with the has been also steady at 270,000 bpd, the “Hakeem had been negotiating receivership in March to avoid a fi eld, resuming production last month. at HSH Nordbank AG in Hamburg, said matter said at the time. person said. Libya, with Africa’s biggest hard...but...it wasn’t the optimal wider debt crisis. State National Oil Corp chairman Mus- on Sunday by email. Libya’s output is Other fi elds have reopened, most re- crude reserves, was pumping about 1.6mn solution so he had to resign,” Etisalat Nigeria has a 14% tafa Sanalla said in April he wanted to seen rising 300,000 bpd on average for cently the Abu Attifel deposit which re- bpd before a political uprising in 2011. The the source said. market share in the country’s boost national output to 1.1mn bpd by the third quarter compared with the fi rst sumed production last month and is now ouster and killing that year of former dic- The lenders initiated changes in mobile market, behind MTN August. quarter, he said. pumping about 81,000 bpd, according to tator Muammar Gaddafi led to a collapse Etisalat Nigeria’s shareholding with 47%, Globacom with 20% Given “ongoing political risks,” how- Sharara closed on June 7 for two days the person who gave the latest production in central authority, and many foreign in- structure last month. Etisalat and Airtel, a subsidiary of India’s ever, production will probably fall short due to a protest by workers over a col- fi gure. The Majid oil fi eld restarted on vestors withdrew as armed groups fought said it was carrying its 45% Bharti Airtel with 19 %. of government targets for the third quar- league’s death at the fi eld, halting about July 1, with output at 4,500 bpd. Sharara for control of oil facilities. Why has Iran’s investment gold rush been so slow to emerge?

AFP tourism boom since the nuclear deal. these sanctions, leaving many international Tehran The only other headline deals have been for firms worried they could face massive fines or aircraft, but here the money has been going in be barred from working in the US, and President the other direction, such as the billions spent by Donald Trump has threatened to tear up the When Iran signed its landmark deal with world Iran Air to buy 100 planes from Airbus and 80 nuclear deal entirely. powers in 2015, curbing its nuclear programme from Boeing. Firms face major compliance headaches trying in exchange for sanctions relief, many expected There has been a cavalcade of so-called to figure out if their money might end up in an investment gold rush. preliminary or “exploratory” deals by major the hands of sanctioned entities such as the But despite thousands of business delegates firms including Renault, Hyundai and Shell, Revolutionary Guards — a tough task given flooding into Tehran from all over Europe, but so far none have translated into actual their shadowy involvement across much of the Asia and beyond, big deals have been slow to investments. Iranian economy. But even without the threat emerge. A UN trade report published in June said total of sanctions, Iran remains a risky investment That makes yesterday’s agreement with French foreign direct investment into Iran last year was prospect due to red tape, a banking sector energy giant Total — which will lead to a 20- just $3.4bn — way below the $4.7bn it received crippled by toxic debt and a fluctuating currency. year, $4.9bn project to develop an off shore gas in 2012 before sanctions hit, and not even in All this has scared off many investors, and field in Iran — a potential breakthrough for the the same universe as the $50bn target set by crucially, the global banks needed to finance country. President Hassan Rouhani when he signed the long-term deals. Who has done deals so far? nuclear deal. What comes next? What is holding them back? Major investments have been few and far All eyes are on Washington, where Trump’s An Airbus A321 airliner arrives at the Mehrabad International Airport during the delivery of the between. Two things: US sanctions and Iran’s domestic administration is in the midst of a 90-day first batch of planes to Iran Air in Tehran on January 12, 2017. For headline aircraft deals for Iran, French car firm PSA was quick off the block, economic mess. review on whether to stick by the nuclear deal. the money has been going in the other direction, such as the billions spent by Iran Air to buy signing a €400mn deal in June 2016 to build Although many international sanctions were The other signatories — Britain, France, 100 planes from Airbus and 80 from Boeing. Peugeot vehicles with Iranian carmaker Khodro, lifted under the nuclear deal, Washington Germany, China and Russia — are determined to and a €300mn agreement in October to build maintained many related to human rights, keep the deal alive, which would make it hard foreign firms. Many grimly recall the $8.9bn confidence to other firms to move in, and that Citroens with Iran’s SAIPA. ballistic missile tests and Iran’s role in regional for the US to enforce sanctions as it did in the fine meted out to French bank BNP Paribas just an international bank will similarly take the Hotel group Accor says it is working on 10 to conflicts. past. three years ago. plunge, triggering the long-awaited gold rush. 15 projects in Iran, hoping to capitalise on the US lawmakers are in the process of tightening But the US has unparalleled powers to fine Iran hopes yesterday’s Total deal will give But for now, it remains a waiting game. Gulf Times Tuesday, July 4, 2017 3 BUSINESS

Goldman to review commodities after Bets on oil rout seen worst start in a decade

Bloomberg for our clients and we will London continue to invest in it to ensure we are best meeting their needs,” Michael DuVally, peaking as shale Goldman Sachs Group, the a bank spokesman, said in an dominant commodities trader e-mailed statement. on Wall Street, is reviewing the The informal review is being direction of the business after led by Isabelle Ealet, one of a slump in the first half of the three global co-heads of the year, according to people with securities division who ran knowledge of the matter. the commodities unit for five boom starts to falter By reconsidering the bank’s years until 2012 – a golden age long-held view that the for the division when revenue Bloomberg downturn in profitability is regularly topped $3bn per New York cyclical and will eventually year. reverse, chief executive off icer Ealet, who joined Goldman in Lloyd Blankfein, who started 1991 as an oil products trader, il short-sellers have been on a roll, his career in the commodities is known in the industry for her but their bets on declining prices business, is drawing closer relentless focus on controlling Omay have begun to hit a wall. to the industry’s prevailing costs. In a rare interview a Hedge-fund wagers on lower West wisdom. Morgan Stanley, few years ago with the French Texas Intermediate crude reached the JPMorgan Chase & Co, Barclays magazine L’Expansion, she said: highest level since August in the week and Deutsche Bank have cut “What I appreciate most is the ended June 27, after more than doubling back or exited commodities culture of results. At Goldman in two months, according to Commodity trading in recent years amid Sachs, you are judged on your Futures Trading Commission data. The falling revenue and tougher performance.” bearish bets increased at a much slower regulation. Goldman has for decades pace than in the previous two weeks, While the bank flagged the boasted the leading commodity though. The US benchmark price had its poor results for the first franchise among Wall Street longest rally of the year, climbing 7% last quarter – without giving specific banks. Its revenue from week, amid signs US shale output is stut- numbers – the weakness has commodities rose from less tering. continued and the unit’s start than $500mn a year between “That slowdown was the prelude to to the year has been the worst 1981 and 2000 to a peak of what should be probably a pretty sizeable in more than a decade, said one $3.4bn in 2009, according to net change in the position next week,” of the people, who asked for a Senate report on US banks’ John Kilduff , a partner at Again Capital, a anonymity to discuss internal involvement in the commodity New York-based hedge fund, said by tel- deliberations. The commodities markets. ephone. The sell-off appears to be “run- division was one of the topics of Last year, the bank made less ning out of steam.” discussion at a board meeting than $1.1bn in revenue from Crude capped its best week this year held in London late last month, commodities, according to one on Friday as shale drillers reduced the the people said. of the people. The business number of oil rigs for the fi rst time since No decision has been reached still ranked No 1 among global January, and a government report showed and the bank may not pursue investment banks, according US production might not be growing so large-scale changes, according to Coalition Development fast. Signs of a waning shale boom are more than doubling their oil-rig count Money managers’ WTI net-long posi- the CFTC said. Shorts had jumped by to the people. It’s common for Ltd, a London-based analytics helping allay fears that eff orts led by the in a year. Output fell for the fi rst time tion, the diff erence between wagers on a more than 30% in each of the previous the bank to review struggling company. Organisation of Petroleum Exporting this year in April and was 190,000 bar- price increase and bets on a decline, was two weeks. “The real question is: Have all business units to see what can But this year, Goldman said that Countries to ease a global supply glut rels lower than the Energy Information little changed at 133,606 futures and op- the fears about the Opec production cuts be improved, one of the people “significantly lower” net revenue aren’t working. Administration’s preliminary weekly tions, according to the CFTC report re- been basically priced into the market?” said. from commodities was partly US explorers last week hit pause on the estimates. The agency has also lowered leased on Friday. Long positions rose by said Gene McGillian, manager for market “Commodities has been and to blame for weak first- quarter longest stretch of uninterrupted growth estimates for production in the Permian, 4.2% to 314,090 contracts, while short research at Tradition Energy in Stamford, still is an important business trading results. on records dating back to 1987 – after America’s most prolifi c oil fi eld. positions climbed by 8.3% to 180,484, Connecticut. Wall St investors show more displeasure with company boards

Bloomberg more actively involved in communicat- tors to focus more on board quality,” said This year, State Street received a wave Southfield, Michigan ing displeasure through their votes,” said Rakhi Kumar, who leads environmental, of positive publicity after it unveiled the Peter Kimball, head of advisory and cli- social and governance investment strat- “Fearless Girl” statue on Wall Street. ent services at the consulting fi rm, a unit egy at State Street. “Board responsiveness In conjunction with the art project, ig investors are losing patience with of Institutional Shareholder Services. is a key reason why shareholders will hold the bank also issued a fresh call on 3,500 unresponsive corporate directors, “Voting against directors at large-cap directors responsible. companies to add more women to their Band they’re showing it with their S&P 500 companies is a way for an insti- If engagement isn’t working and boards boards, particularly those with no female votes. tution to send a signal to other, smaller aren’t being responsive to our feedback, members. Shareholders have withheld 20% or companies about the actions that they then we take action.” Wells Fargo’s board faced pressure from more of their votes for 102 directors at don’t like. State Street voted against 731 directors investors because of its failure to pre- S&P 500 companies so far this year, the That feedback trickles down.” in 2016 and expects a similar number this vent a scandal that led to the bank being most in seven years, according to ISS Cor- While the Trump administration moves year, after rejecting 538 in 2015, Kumar fi ned $185mn by regulators in September porate Solutions, a consulting fi rm spe- to reduce regulatory pressure on compa- said. for opening retail bank accounts without cialising in corporate governance. nies, big institutional investors are mov- No longer are investors just “checking a customer approval. While largely symbolic, the votes at ing in the opposite direction. box” to support directors, she said. Exxon Mobil took heat over its stance companies such as Wells Fargo & Co and State Street Global Advisers and Black- State Street is encouraging companies on global warming and engagement with A sign for the Wall Street is seen outside the New York Stock Exxon Mobil Corp are recognised as sig- Rock, for example, are increasingly taking to refresh their boards to get new and investors. Exchange. Shareholders have withheld 20% or more of their votes nals of displeasure and put pressure on an activist approach, calling for changes more diverse members. The entire board at Wells Fargo received for 102 directors at S&P 500 companies so far this year, the most in boards to engage. in diversity and corporate responsibility. The bank overhauled its investment less than 80% support this year, including seven years, according to ISS Corporate Solutions, a consulting firm “Institutional investors are becoming “Part of this is really the shift in inves- strategy in 2013 to become more activist. four with less than 60% support. specialising in corporate governance.

China Inc’s $7.8bn of dividend payouts to stress yuan

Bloomberg Beijing

he yuan’s rebound may be undermined by a seasonal hunt for dollars as Chinese companies prepare to pay Tdividends to shareholders overseas. Demand for the greenback and other currencies will peak at $7.8bn in July, a substantial sum considering that local lenders settled an average of $11.8bn in foreign- exchange for clients in the first five months of 2017. China’s currency reserves have shrunk every July in the last three years, with former regulator Guan Tao saying last week that demand for foreign-exchange surges in this period. China’s exchange rate has turned more volatile in the past two months, climbing the most in more than a year in May and then declining in June before suspected central bank intervention spurred a rally. Goldman Sachs Group warned capital outfl ows have picked up, while recent data sug- gest the economy is showing signs of slowing as an offi cial deleveraging drive crimps spending. “The need for dividend payouts will pressure the yuan and may pressure a recent increase in China’s foreign re- serves,” said Xia Le, a Hong Kong-based economist at Banco Bilbao Vizcaya Argentaria. “The yuan’s advance in the past few days is not sustainable – short-term factors such as dividend payments and long-term ones like capital outfl ows will work together to push the currency weaker in the com- ing months.” Offshore-listed Chinese firms need to pay a com- bined $16bn of dividends in foreign exchange in the three months through August, according to data compiled by Bloomberg. That includes $2.4bn in June and $5.9bn for August. Hong Kong-listed China Construction Bank Corp will need to pay the equivalent of $3.8bn of dividends on July 20, according to a stock exchange fi ling. Bank of China Ltd will pay $1.9bn and China Shenhua Energy Co will shell out $1.2bn, both in August. Gulf Times 4 Tuesday, July 4, 2017 BUSINESS

Australia likely Japan business confi dence to keep rates at hits three-year high: BoJ 1.5% today AFP Tokyo

Reuters Sydney onfi dence among Japan’s big- gest manufacturers has risen for Cthe third straight quarter to the ustralia’s jobs market best level in more than three years, a key looks healthier than it has central bank survey showed yesterday Ain months while house as exports continue to grow. prices are cooling in the face The Bank of Japan’s Tankan report – of tighter lending rules, all ar- a quarterly survey of more than 10,000 guments for steering a steady companies – showed a reading of 17 course on interest rates this among major manufacturers, the high- week. est since the fi rst quarter of 2014. The Reserve Bank of Australia The key index, which rose from 12 in (RBA) holds its July policy meet- the previous survey, also beat market ing today and is almost certain expectations of a result around 15. to keep rates at 1.5%, where they The better-than-expected Tankan have been since August last year. would normally be good news for Prime All eyes will be on the post- Minister Shinzo Abe, who has been try- meeting statement for any hint ing to revitalise Japan’s economy. of hawkishness given central But the results came a day after his banks in Europe and Canada had Liberal Democratic Party suff ered a surprised recently by talking of crushing defeat in elections for the To- the need for tighter policies. kyo municipal assembly. That change in tune led the The vote was seen as a barometer of futures market to abandon any current public sentiment towards his thought of another easing in government which has been beset by Australia and instead imply a a series of scandals that have dented one-in-ten chance of a hike in its support. Abe swept to power in late rates by Christmas. 2012 on a pledge to cement a lasting Economists, though, remain recovery in the world’s third-largest much more circumspect and do- economy with a growth plan epony- vish. mously dubbed Abenomics. A Reuters poll of 50 analysts The scheme – a mix of aggressive found all but one expected rates monetary easing and huge government to stay steady this week and most spending along with reforms to the saw no move until late 2018. economy – stoked a stock market rally “In our view the RBA is un- as it weakened the yen and fattened likely to be hawkish given still corporate profi ts, but the eff ect on the elevated labour market slack wider economy has been less dramatic. and subdued infl ation,” said Ta- Recently the country’s prospects pas Strickland, an economist at have been improving on the back of NAB. “Nevertheless, the State- strong exports, with investments linked ment could well read more posi- to the Tokyo 2020 Olympics also giving Workers at a construction site in Tokyo. Confidence among Japan’s biggest manufacturers has risen for the third straight quarter to the best level in more than three tively given May’s stellar labour the economy a shot in the arm. years, a key central bank survey showed yesterday as exports continue to grow. fi gures and the market might “The jump in the Tankan’s headline well infer a hawkish tilt even if it index for large manufacturers suggests The latest survey also showed the timent to improve further, especially in repatriated profi ts. The Tankan, closely infl ation ticked up in May, but weak isn’t,” he added. that economic activity accelerated last average currency exchange rate ex- manufacturing, in the September sur- watched for being the broadest indicator spending underlined the challenges still Employment blew past fore- quarter,” said Marcel Thieliant, senior pected by large manufacturers came in vey,” economists Yuichiro Nagai and of how Japan Inc is faring, marks the dif- facing Tokyo’s battle to ramp up prices casts to jump 42,000 in May, a Japan economist at Capital Economics. at ¥108.31 to the dollar for the year to Yukito Funakubo of Barclays said in a ference between the percentage of fi rms and slay years of on-off defl ation. third straight month of upbeat “Capacity shortages have intensifi ed March 2018, much stronger than cur- research note. that are upbeat and those that see condi- The index for non-manufactur- outcomes that drove the job- and manufacturers are reporting the rent market rates. A weaker currency is positive for Japa- tions as unfavourable. ers rose to 23 from 20 in the previous less rate to a four-year trough smallest declines in output prices since As the actual rate is currently around nese exporters as it makes their products The latest report comes after a batch Tankan, reaching the highest level since of 5.5%. Leading indicators of 2008,” he wrote in a commentary. ¥112, “there appears to be room for sen- more competitive abroad and infl ates of government data on Friday showed the fi nal quarter of 2015. labour demand are also healthy with ANZ’s measure of job ad- vertisements climbing 2.7 % in June to its highest since 2011. “We think the strength of employment will be a key factor in stabilising, and possibly lift- Bankers pin hopes on M&As to drive Asia loan volume ing, consumer sentiment,” said David Plank, ANZ’s head of Aus- tralian economics. “This will be Bloomberg Communications Ltd. “Loan volumes semiconductor business. Asia-Pacifi c port their exposures to the companies tion of Australia’s Ausgrid in 2016. important in ensuring downside Sydney have been falling, but the pipeline is ex-Japan region loan volumes didn’t after last year’s unprecedented out- “We are still seeing deals in the Chi- risks to the economy don’t ma- better than it’s been in recent years,” pick up signifi cantly in the second bound takeover spree. China’s State nese tech sector, and I’m sure there will terialise.” says John Corrin, global head of syn- quarter after a slow start to the year, as Administration of Foreign Exchange be more,” Corrin said in an interview The upbeat tone was echoed ankers are counting on merg- dications at Australia and New Zealand refi nancing decelerated, and borrowers stepped up curbs on overseas acquisi- June 22. He also noted that the com- by an inaugural series of sur- ers and acquisitions to drive a Banking Group Ltd. “The China market switched to bonds and bilateral facili- tions in November last year, including modities sector is quite busy, and that veys from CBA and Markit which Bpick-up in Asia syndicated loan is still strong,” he said. “I could see sig- ties. In the fi rst six months, $208.7bn barring most investments of $10bn or there’s some fi nancial institution and showed robust activity in both volume this half as fewer jumbo deals nifi cant interest from Chinese compa- of loans were signed, the lowest for a above. corporate borrowing in Indonesia. manufacturing and services and China’s crackdown on cash leav- nies in acquisitions in places like Aus- half-year period since 2013, according Even so, four of the top fi ve deals in The pipeline for the rest of 2017 is during June. The run of improv- ing the country hurt the market in the tralia, Europe, and the US.” to data compiled by Bloomberg. the second quarter were from greater looking up, according to Phil Lipton, ing numbers could lead the RBA January-June period. Other M&A deals in the pipeline in- A slowdown in China, the region’s China, including Alibaba Group Hold- chairman of the Asia-Pacifi c Loan to upgrade its view of the la- The deal pipeline has grown to clude a HK$28bn ($3.59bn) privatisa- biggest market, weighed on deal ing Ltd’s $5bn debt and Ant Financial’s Market Association. The drop in vol- bour market, which it has been $124.5bn in June from $110.3bn in tion loan for footwear retailer Belle In- fl ow. China volumes dropped 54% to Alipay’s $3.5bn loan to partly fi nance ume so far this year “partially refl ects characterising as no better than March. More than a third of those fa- ternational Holdings Ltd and Yancoal’s $157.6bn in the April-June period, from the purchase of MoneyGram Inter- the economic slowdown and political “mixed”. cilities are tied to takeovers, includ- fi nancing of around A$4bn ($3.08bn) a record high in the second quarter last national. The biggest borrowings this uncertainty in the second half of 2016,” Yet too cheerful a message ing fi nancing for groups bidding for related to its acquisition of Coal and year. year are still dwarfed by China Na- Lipton, head of Asia-Pacifi c loan syn- could lift the local dollar, which Singapore warehouse operator Global Allied Industries. Hon Hai Precision China’s banking regulator is step- tional Chemical Corp’s $20bn loan to dications at HSBC Holdings, said at the is already at heights considered Logistic Properties, and funding for a Industry Co is seeking debt of at least ping up scrutiny of the country’s most back its takeover of Syngenta AG, and a annual APLMA market conference in unhelpful for exports. potential spin-off of Hutchison Global $15bn to back its bid for Toshiba Corp’s prolifi c acquirers, asking banks to re- A$12.78bn facility tied to the privatisa- Singapore on June 7. Modi’s reform agenda not yet done as India’s new tax launched

Bloomberg goes smoothly and does not lead to a Singapore-based senior analyst for South ances in Andhra Pradesh and Telangana, New Delhi spike in inflation or sustained economic Asia at Control Risks, a consultancy. Fear said Shailesh Kumar, a Eurasia Group chaos. Despite a relaxation of initial filing of significant political backlash in the lead senior analyst for South Asia. requirements, there are early signs that up to the 2019 elections is likely to reduce “Along the way, the administration With a landmark goods and services businesses remain confused and consum- the BJP’s appetite for riskier reforms, Rao is also going to do everything it can to tax now rolling out across India, Prime ers might be putting off purchases. added. keep inflation low as price stability will be Minister Narendra Modi is likely to turn “Politically selling the GST and ensuring “Overall, we are likely to continue critical for his electoral chances,” Kumar his focus to job creation and other key there are no wrinkles will take the best seeing a preference for an incremental said. “This will have the added benefit of economic reforms. part of the next six months, if not longer,” approach towards reforms, one that supporting additional inward investment, Further big structural steps, such as said Ashok Malik, a distinguished fellow prioritises administrative reforms over which has become an important driver of revamping India’s land acquisition and with the New Delhi-based Observer structural ones.” economic growth.” labour laws, are unlikely to occur before Research Foundation think tank. Still, in the days before the GST was for- Currently, bigger structural reforms are the next national election, scheduled for Given indirect taxes on almost 50% mally rolled out, Modi’s government was still stymied by the BJP’s lack of a majority 2019, as Modi’s Bharatiya Janata Party of the CPI basket are expected to come already by asking the finance ministry to in India’s Rajya Sabha, or upper house of still lacks a majority in the upper house of down under GST, the new tax is not ex- suggest ways to potentially privatise the parliament. parliament. pected to be inflationary, said Sujan Hajra, debt-laden the indebted state carrier Air That means Modi’s party has been un- Instead, analysts suggest the BJP is chief economist at Anand Rathi Financial India. able to push through politically-sensitive likely to focus on creating jobs while it Services Ltd. Even as the government tweaks the changes to the country’s land and labour pursues smaller reforms, including on “Prices are expected to decline under GST roll out and attempts to sell off the laws, despite the BJP having a majority in administrative measures, anti-corruption GST and inflation is the only link between state airline, Modi’s administration is likely India’s lower house of parliament, the Lok policies and tax evasion. While India RBI monetary policy decision and GST,” to continue policies that build on the Sabha. However, the situation in the upper remains one of the fastest growing Hajra said. “That will open an elbow legacy of his three-year reign while cam- house should eventually improve if the economies in Asia, employment creation room for RBI to cut rates – we expect the paigning across the country to increase BJP keeps winning state level elections was the slowest on record in 2015, with central bank to ease the repo rate by 25 the BJP’s chances of securing a second the way the BJP won big in Uttar Pradesh, just 135,000 net new jobs in the formal basis points in August as inflation is low.” five-year term. the country’s most populous state at sector of the economy against the 12mn If the GST-related disruption continues, it “You’re likely to see some measures on 200mn people. estimated new entrants to the workforce, would be the second big hit to economic tax avoidance and corruption, some sort “It will open the door for ambitious, government data show. A supporter of India’s ruling Bharatiya Janata Party holds a placard during a activity in less than a year, after Modi’s of crackdown on high profile cases,” Malik sweeping economic reforms that could At the same time, Modi’s administration rally to support implementation of the Goods and Services Tax in Mumbai. government demonetised the country’s said, adding that big structural economic lift India’s medium-term growth rate,” said will also have to dedicate considerable re- high denomination notes last November, reforms are now unlikely. “I think he’s Rajiv Biswas, Asia-Pacific chief economist sources to ensure the success of the new, of the GST success to make additional Modi remains popular in India, but the job eff ectively eradicating 86% of currency in done enough for his first term.” at IHS Markit. nation-wide GST, which took eff ect on progress on the economic reform front,” issue is one area that could be a political circulation. The BJP is also likely to try and expand “These could include long delayed re- July 1 after a midnight launch ceremony said Michael Kugelman, a senior associate liability for him and his party both in state “If that happens, it will provide political its base of support beyond north India by forms to land acquisition laws that should and has already caused some economic for South Asia at the Woodrow Wilson and national elections.” fodder for a beleaguered opposition in making political inroads in the southern catalyse industrial investment as well as disruption. Center in Washington, DC. “In particular More urgently, Modi’s party will need the run-up to elections in Modi’s home state of Tamil Nadu, the eastern state of further foreign investment liberalisation “Modi will want to ride on the coat tails he’s going to be focused on job creation. to make sure the GST implementation state of Gujarat,” said Pratyush Rao, a Odisha and attempting to shore up alli- and additional financial services reforms.” Gulf Times Tuesday, July 4, 2017 5 BUSINESS

China’s new yuan factor China opens up $10tn bond comes into play when currency market in liberalisation step weakens AFP Shanghai Reuters Shanghai hina yesterday widened access to its $10tn bond market, which In the month since China Canalysts said will boost Beijing’s changed how it calculates the drive to internationalise the yuan and yuan’s guidance rate, market more deeply integrate its markets with participants have discovered the world fi nancial system. that this factor is lopsided and The new window for foreign inves- operates mainly to thwart yuan tors was opened via Hong Kong, where depreciation. “qualifi ed investors” such as central The undisclosed factor put banks, sovereign wealth funds and in place by the People’s Bank major fi nancial institutions are now of China (PBoC) to reduce price allowed to buy Chinese bonds – the swings has been at play only world’s third-largest market after the on days when the yuan’s previ- United States and Japan. ous session close was weaker Qualifi ed investors include central than intended. The central banks, sovereign wealth funds, and bank introduced the “counter- other major fi nancial institutions, ac- cyclical factor” into its formula cording to the People’s Bank of China that determines the mid-point (PBoC) and the Hong Kong Monetary reference rate for the yuan in Authority, who jointly announced the late May saying it would allow move on Sunday. the currency’s value to better Trading got off to a tepid start, how- reflect supply and demand. ever, with analysts saying questions That secretive factor has about the yuan’s stability and fears over made it almost impossible for mounting Chinese debt levels will keep the market to estimate each foreign enthusiasm in check. day’s mid-point, around which The 10-year government debt yield the yuan is allowed to trade. had risen only slightly by late afternoon Investors suspect the new to 3.5732%, or 0.0076 points, according formula is aimed at keeping the to Bloomberg. yuan stable, in particular to pre- Bond yields rise inversely to their vent it weakening excessively prices. and to change market expecta- The People’s Bank of China (PBoC) tions around its depreciation. and the Hong Kong Monetary Author- Mid-point fixings in June ap- ity jointly announced the step on Sun- pear to support their theory. day amid weekend celebrations for the “The counter-cyclical factor 20th anniversary of Britain’s handover was triggered to support the of Hong Kong to Beijing in 1997. midpoint, when the previous The PBoC said in a statement yester- day’s close was weaker than day that the new platform would “pro- the fixing, suggesting that the mote Hong Kong’s long-term prosper- depreciation pressure was ity and stability, and provide a more building up in the market,” said convenient investment channel for Ken Cheung, Asian FX strategist overseas investors”. at Mizuho Bank in Hong Kong. “It will also steadily push forward the Market watchers who have opening up of China’s fi nancial market,” built models to mimic the PBoC’s it said. formula suspect the factor was The link-up was launched in Hong not included in daily midpoint Kong by the city’s new chief executive at a time of slowing domestic economic rate and central bank debt – but is ex- fi ed investor base and further enhanc- series of liberalisation pledges. Last fixings between Wednesday and Carrie Lam, who hailed it as “another growth and helps internationalise its pected to become two-way eventually. ing the market’s size and depth,” said month, leading index compiler MSCI Friday last week, when the dollar new chapter in the development of mu- currency, which can increase a coun- Analysts said the new opening was Helen Wong, Greater China chief ex- said it would include Chinese shares was weak across currencies tual capital markets access between the try’s global monetary clout. not expected to prompt a rush of foreign ecutive for banking giant HSBC said. in its global emerging-market indices, and the yuan ended the local mainland and Hong Kong”. The new platform mirrors previously investment. “This will help pave the way for Chi- citing loosening restrictions on foreign session each day stronger than Foreign investors already have ways established link-ups between the share But it was hailed by some as a step na bonds to be included in major global ownership of Chinese stocks. the fixing the previous day. “The to access Chinese bonds but currently markets of Hong Kong and mainland toward Chinese debt being included in bond indices in the future.” After years of runaway growth, introduction of the counter-cycli- hold less than 1.5% of anything issued China that now allow foreign and Chi- key global bond indices, which will en- Ratings agency Moody’s called the China is grappling with slowing eco- cal factor has allowed the central in China, according to estimates by nese investors to buy stocks in the each courage fi nancial institutions to raise move a “milestone” in yuan interna- nomic expansion, and has moved to bank to regain its price right Bloomberg. other’s markets. their investments in China bonds. tionalisation. stanch massive capital flight by Chi- on the midpoint,” said Cheung, China has been working to assimilate The connect scheme currently only “The enhanced ease of investment China has for years faced foreign nese funds seeking better returns noting the authorities now have more with global markets, which allows allows foreign investors to buy Chinese under Bond Connect will attract more complaints about restricted access to overseas while trying to lure more for- more power to use the midpoint access to increased foreign investment bonds – including government, corpo- overseas funds, creating a more diversi- its markets, but has recently made a eign investment. to guide the same day’s yuan movement. Analysts say yuan policy is less transparent but the change was probably implemented to remove deeply entrenched expectations the currency is a Indonesia hopes for additional $10bn infl ows one-way bet down. The renminbi fell 6.5% against the dollar last year Reuters language of business, said he is com- and domestic outflows remain Jakarta mitted to keeping Indonesia’s economy heavy despite capital controls. open and competitive. The “counter-cyclical factor” Widodo’s government has intro- worked well to alter bearish ndonesia is hoping for additional duced 15 economic stimulus packages perceptions of the yuan in the infl ows worth $10bn from pension since late 2015, including the easing of first two weeks after the change Ifunds and other institutional inves- foreign ownership restrictions on doz- as the currency was kept largely tors over the next two years following ens of business sectors such as tourism, stable. A slew of investors who Standard & Poor’s upgrade of its credit transportation and movie theatres last had bet on losses in the yuan rating to investment grade, President year. liquidated their short positions. Joko Widodo told Reuters. “We will revise again the negative “The adoption of the counter- The government will also ease for- list of investment in August in some cyclical factor has strengthened eign ownership restrictions on certain sectors,” Widodo said, referring to the the idea that the yuan would industry sectors in August, Widodo list of sectors that are partially or fully start to strengthen,” said a said in an interview at the presidential closed to foreigners. senior trader at a Chinese bank palace in Jakarta yesterday. He declined to say which sectors in Shanghai. The yuan fixing For the fi rst time in almost 20 years, would be opened up. strengthened 1% against the dol- Indonesia is rated investment grade by Transport Minister Budi Karya Su- lar between May 31 and June 9, all three major rating agencies after S&P madi said last month that the govern- helping nudge the currency up on May 19 raised its outlook to ‘BBB-’ ment was considering easing rules on 0.8% even though the dollar was from ‘BB+’, matching the ratings already airport operation services. largely flat in the same period. awarded by Fitch and Moody’s. Foreign ownership in that sector is June has traditionally been a The upgrade was “very important” currently capped at 49%. period of high corporate dollar because it would encourage more capi- Trade openness will be high on demand in China, and rising tal infl ows and reduce borrowing costs, Widodo’s agenda when he travels to dollar purchases subsequently said Widodo, a former Jakarta gover- Hamburg, Germany, to meet other forced the yuan to give back nor who was elected to lead Southeast Indonesia’s President Joko Widodo gestures during an interview with Reuters in Jakarta. The government will ease foreign world leaders at the G20 summit later more than half of the gains it Asia’s biggest economy in 2014. ownership restrictions on certain industry sectors in August, Widodo said. this week. made in late May and early “Now the pension funds look to In- Widodo said he would have a bilat- June. The yuan’s local close donesia,” he said, adding that some of to the factory.” While growth in In- tic market is still seen as an engine of when neighbours such as Vietnam are eral meeting with US President Donald was persistently weaker than the money will go into the country’s donesia’s gross domestic product has growth. Foreign companies have com- actively courting investment dollars. Trump, whose administration had put its fixing between June 15 and stock and bond markets. “After that slowed from a peak of more than 6% plained that vested interests are block- Widodo, who often points to his Indonesia on a list of 16 countries to be June 26. the companies here can take and invest several years ago to around 5% due to a ing them from gaining more access to background as a former furniture ex- reviewed over trade surpluses with the to the real sector, to the infrastructure, commodity downturn, its vast domes- the country of 250mn people, at a time porter to show that he understands the world’s largest economy. Idemitsu to issue new shares, diluting founding family stake

Reuters court injunction to block the share refiner, the family has the right to family’s stake, and that Idemitsu Ko- In a regulatory filing, Idemitsu Ko- ply for court injunction to block the Tokyo issue, a lawyer for the family said in veto special items such as a merger. san had no plans to hold a sharehold- san said it would take counter action share issue.” a statement. But Idemitsu Kosan’s planned ers meeting to vote on the merger af- in case shareholders take legal action Overcoming opposition from the The family of founder Sazo Ide- sale of 48mn new shares would re- ter the issuance. to block the share issue, but warned founding family, last week, Idemitsu apan’s Idemitsu Kosan Co plans mitsu, including octogenarian son duce the stake to about 26%, a Daiwa Securities and JP Morgan the sale would be cancelled if court Kosan’s CEO Takashi Tsukioka, who to issue new shares to raise Shosuke Idemitsu – a former presi- calculation by Thomson Reuters are joint global coordinators for the injunction is granted and stays be- has been pushing for a full merger J$1.2bn, diluting a stake held by dent of the company and now hon- shows, taking away the family’s share offering, which is expected to yond the pay-in date. with Showa Shell, was re-elected to its founding family that is locked in orary chairman, say a merger with right to veto. raise ¥138.5bn ($1.23bn). Idemitsu Yohei Tsuruma, the lawyer who the company’s board at an annual a fierce battle with the management Showa Shell Sekiyu would not A company spokesman, how- Kosan said it would use part of the represents the founding family, said shareholders’ meeting. over the latter’s plan to merge with a work as the businesses were too ever, said the purpose of the share proceeds to repay ¥159bn of loans in a statement: “It’s obvious that Idemitsu Kosan shares closed up smaller rival. different. sale was to raise necessary funds taken to fund the acquisition of a it will dilute the founding family’s 2.2% yesterday, outstripping a 0.1% The founding family will seek a With control of over a third of the and not to dilute the founding stake in Showa Shell. stake and we are planning to ap- rise in the Nikkei. Gulf Times 6 Tuesday, July 4, 2017 BUSINESS

Indian markets cheer GST launch; rupee weakens

IANS National Stock Exchange Mumbai (NSE) rose by 94.10 points Asian stock markets or 0.99% to close at 9,615 points. Cheering the launch of the The 30-scrip Sensitive country’s biggest indirect Index (Sensex) of the BSE, tax reform – the Goods and which opened at 31,156.04 Services Tax (GST) – on points, closed at 31,221.62 July 1, the Indian equity points – up 300.01 points, markets turned bullish and or 0.97%, from its previous squeeze out gains closed with substantial close at 30,921.61. gains yesterday. The Sensex touched a high AFP said OANDA senior market ana- his ruling party losing more than Market observers opined of 31,258.33 points and a Hong Kong lyst Craig Erlam. half its seats as he is rocked by a that the key indices rose low of 31,017.11 during intra- Since the turn of the year series of scandals and falling close to 1% on the first day trade. the euro has jumped about support. trading day of the month The BSE market breadth he euro and pound held 10% against the dollar, while Hong Kong swung through as positive global cues was bullish – 1,799 their gains against the the pound has gained almost the day and ended 0.1% high- and healthy automobile advances and 876 declines. Tdollar yesterday after sig- as much from its January lows, er at 25784.17 while Shanghai results buoyed investors’ The broader market indices nals from global central banks despite British political uncer- edged 0.1% up at 3,195.91 fol- sentiments. outperformed the Sensex, that they were prepared to tainty caused by the country’s lowing a better-than-expected The S&P BSE FMCG with the S&P BSE mid-cap tighten monetary policy, while decision to leave the EU. private survey showing Chinese index rose by 3.40% to index up by 1.13% and the equity markets mostly eked out The two currencies dipped manufacturing expanded last hit a record high, with small-cap index by 1.05%. small gains after last week’s in Asian trade but held most of month. ITC – which is the largest “The first trading session losses. their recent gains. Sydney fell 0.7% and Singa- contributor to the index of July started on a The greenback tumbled after Greg McKenna, chief market pore edged up 0.2% while Seoul – witnessing the highest positive note as the key the Bank of England, the Euro- strategist at AxiTrader, said: ended slightly stronger. momentum. benchmark indices settled pean Central Bank and the Bank “It may be still too early for the Taipei and Jakarta rose but According to market with healthy gains on the of Canada indicated that the age other central banks to move, but Wellington and Manila fi nished analysts, stocks of the back of positive global of cheap cash — in place since the market is getting a sense the down. FMCG major rose after cues. The sentiment was the fi nancial crisis — was draw- punch bowl is about to be taken In China a link opening up the additional excise duty on also helped after the ing to a close as the world econ- away. country’s $10tn bond market to cigarettes was removed biggest tax reform, the GST, omy gets back on track. “I think the coordination of the world began yesterday, with under the Goods and came into force from July The comments also signalled language refl ects a coordination traders able to buy in through Services Tax regime. 1,” Deepak Jasani, head the end of policy divergence of the recognition that the glo- the connect programme in Hong “With implementation of of retail research at HDFC with the Federal Reserve, which bal economy is pointing higher Kong. The new platform mirrors GST, FMCG stocks rallied, Securities, said. has been in a tightening mode and the time for emergency pol- previously established link-ups especially ITC, after news “A rally in ITC helped the for years and supportive of the icies in individual jurisdictions between the share markets of of no additional excise Nifty to register healthy dollar. “While we’ve known for has ended.” Hong Kong and mainland China duty on cigarettes. The gains. Major Asian markets some weeks now that policy- On equity markets Tokyo’s that now allow foreign and Chi- shift from unorganised ended on a positive note, makers at both the Bank of Eng- Nikkei ended 0.1% higher at nese investors to buy shares in sector to organised barring the Straits index,” land and the ECB have become 20,055.80, boosted by a slightly each other’s markets. sector is beneficiary he added. increasingly open to tighter weaker yen and a pick-up in However, the buying was to FMCG companies,” However, on the currency monetary policy, this shift... confi dence among Japanese muted in early exchanges, with Dhruv Desai, director and front, the rupee weakened was a sign that even the more businesses. the yield on 10-year government chief operating officer of by 30 paise to 64.88 to a dovish policymakers may be However, traders were debt edging up slightly. Tradebulls, told IANS. US dollar from its previous A man looks at a stock quotation board flashing the Nikkei 225 key reluctantly accepting the possi- spooked by a huge defeat for Yields move inversely to pric- The wider Nifty of the close at 64.58. index in front of a securities company in Tokyo. Japanese stocks bility that monetary policy will Prime Minister Shinzo Abe in es, meaning they go up when edged up 0.1% to 20,055.80 yesterday. become less accommodative,” Tokyo assembly elections, with demand for the bond goes down.

‘India’s NSE may Emerging stocks make modest gains need to refi le Reuters links China’s $9 trillion bond market with London overseas investors. Indian stocks rose almost 1% after tobac- IPO application’ co manufacturer ITC jumped nearly 10% to obust manufacturing data from Chi- a record high. Reuters na and South Korea boosted emerg- Taxation for cigarettes under a new goods New Delhi Ring equities yesterday, while curren- and services levy is around 5-6% lower than cies were kept under pressure by a fi rmer under the previous structure. dollar and higher US yields that also capped With the dollar fi rming 0.3% against a ndia’s National Stock Exchange may need to refi le its appli- share market gains. basket of currencies and US 10-year yields cation for a stock listing after looking into whether brokers China’s manufacturing sector expanded at six-week highs, emerging currencies Iwere provided unfair access to its servers, markets regula- at the fastest pace in three months while struggled to make headway, with the South tor chairman Ajay Tyagi said yesterday. South Korea’s grew for the fi rst time in 11 Korean won weakening 0.2% and the Indian NSE submitted an application for an initial public off ering months. rupee down 0.3%. (IPO) in December, but Securities and Exchange Board of India In emerging Europe, Turkish manufac- South Africa’s rand slipped 0.4%, ex- (Sebi) has yet to approve the listing amid an ongoing regulatory turing activity expanded at its quickest in tending losses to a third straight session. probe into whether India’s biggest exchange had provided un- more than three-and-a-half years, whilst A no-confi dence vote in President Jacob fair access to its servers to some brokers. NSE said at the time Poland and Russia also continued to accel- Zuma has been delayed to August 8. it could not conclusively determine whether any collusion had erate. Finance Minister Malusi Gigaba said he happened between its employees and market participants, oil prices also rose, inching up to a two- would present an action plan on Friday to spurring the regulator to look for a forensic auditor to further week high. boost economic growth, drawing on issues probe into the matter. “Data fl ow from the PMIs have been quite raised by investors and ratings agencies. Sebi chairman Tyagi suggested yesterday that it wanted the solid,” Manik Narain, emerging FX strate- The lira fell 0.2% after Turkish consumer NSE to address the probe fi rst and then left open the pros- gist at UBS, said, referring to Purchasing infl ation dipped in June. pect the exchange would need to refi le the IPO. “I think they Managers Indexes. “Between the commod- “The sharper-than-expected fall in themselves have to do it,” Tyagi told reporters on the sidelines ities and the tech cycle, emerging market Turkish infl ation last month to 10.9% year- of an event when pressed about whether the NSE would need equities have held up quite well.” on-year raises the risk that the central bank to update its application with new information, including an MSCI’s benchmark emerging stocks in- will begin to reverse its recent tightening update to its fi nancial statements. The NSE has sought to move dex rose 0.2%, with Polish and Turkish cycle sooner than we had previously an- ahead with its listing, proposing to settle it with the regulator stocks up 0.3%, while Russian stocks rose ticipated,” analysts at Capital Economics through the payment of a penalty, according to two sources fa- 0.8%, helped by higher oil prices. said in a note.The Czech crown fi rmed to its miliar with the matter. Sebi has not said whether it would be Chinese mainland shares delivered a strongest against the euro since the central open to a settlement. NSE’s older rival BSE Ltd listed in early mixed performance but Hong Kong was bank abandoned its weak crown policy in February and has seen its share surge 33% from its IPO price supported by fi nancials, the biggest benefi - early April. Czech employment growth ac- as the bourse has benefi ted from a record-setting rally in share ciary of a new Bond Connect scheme that celerated to its strongest since March. markets that are expected to improve profi ts.

Hedge funds walk into bear trap in oil

By John Kemp Fund managers have ramped up short positions in NYMEX WTI by 86mn barrels Toshiba mulls a Swiss IPO London over the last four weeks, in the most aggressive short-selling cycle since the start Hedge fund managers had amassed a record of 2015. number of short positions in petroleum But the sheer number of short sales left the for Landis+Gyr by Sept futures and options by the start of last week, market looking imbalanced and vulnerable which primed the oil market for a sharp to a short-covering rally. short-covering rally at the end of the month. Crude prices have now risen for seven Bloomberg Hedge funds and other money managers consecutive trading sessions as the pace Zurich held short positions in the five major of short sales slows and some hedge fund contracts on crude, gasoline and heating managers have been emboldened to start oil amounting to 510mn barrels on June 27, adding long positions in anticipation of a oshiba Corp is considering an initial according to regulatory and exchange data. rally. public off ering in Switzerland for energy Fund managers have added 200mn barrels Hedge funds quietly added 3mn barrels Tmetering company Landis+Gyr AG by of extra short positions since the end of May of extra long positions in gasoline, 0.7mn the end of September, raising much-needed and 377mn barrels since crude prices peaked in heating oil and 9mn in WTI in the week cash to bankroll its turnaround. in the middle of February. to June 27 (though this was off set by a Landis+Gyr, which makes gear to track house- Hedge funds were even more pessimistic continued reduction of 20mn in Brent). hold power consumption, is one of several assets than in January 2016, with more short Fund managers are likely to have closed Toshiba has put up for sale as it tries to make up positions than when oil prices were touching out at least some of their short positions as for multibillion dollar losses at its Westinghouse their cyclical lows below $30 per barrel. prices have risen consistently over the last nuclear energy unit. The company selected a Jap- Overall, fund managers were running net week. anese-led group last month as preferred bidders short positions of 20mn barrels in gasoline The US oil rig count fell slightly last week for its prized memory chip business. and 32mn barrels in heating oil on June 27. for the first time since early January which An IPO on the SIX Swiss Exchange is one of Funds still had a net long position of 357mn accelerated the short covering and provided several options on the table and a sale of the barrels in crude but it had been cut from a boost to oil prices at the end of the week. business remained an alternative, the Japanese 589mn barrels on May 30 and a record The critical question for the market is how company said in a stock exchange fi ling yester- 951mn barrels on February 21. many of those short positions have been day. Toshiba was said to have courted acquisi- The logo of Swiss-based meter maker Landis+Gyr is seen at an off ice building in the Swiss town Growing doubts about the eff ectiveness closed out and how many more are still tion bids for the Swiss subsidiary, which had of Zug. The energy metering company is one of several assets Toshiba has put up for sale as it of Opec’s production cuts, coupled with open. been expected to fetch about $2bn. CVC Capi- tries to make up for multibillion dollar losses at its Westinghouse nuclear energy unit. increases in crude output from Libya, If many of the extra short positions have tal Partners and Hitachi Ltd had made a joint Nigeria, Canada and the United States have been closed, prices are likely to stabilise off er to buy Landis+Gyr from Toshiba and In- Richard Mora said on a call with journalists. ness, which may result in a loss of as much prompted a wave of short-selling. around current levels, but if most remain novation Network Corp of Japan, according to “We have a signifi cant amount of interest with as ¥1.01tn ($9.2bn) for the year that ended in And concerns about the health of gasoline open, upward pressure is likely to continue. a person familiar with the matter. regard to Landis+Gyr, both on the trade sale March. Toshiba, slated for demotion to the demand and high level inventories in the “No decisions have been made with regard and on the IPO as well.” second board of the Tokyo stock exchange, United States have added to the bearishness „ John Kemp is a Reuters market analyst. The to either the IPO or the dual-track potential Toshiba is selling assets to contend with the now has until the end of March 2018 to shore within the hedge fund community. views expressed are his own. trade sale,” Landis+Gyr chief executive offi cer bankruptcy of its Westinghouse nuclear busi- up its balance sheet or face delisting. Gulf Times Tuesday, July 4, 2017 7 BUSINESS

SAUDI ARABIA KUWAIT OMAN

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

Saudi Re For Cooperative Rei 6.54 0.62 1,161,973 Boubyan Intl Industries Hold 35.70 -10.75 145,000 Dhofar Beverages Co 0.26 0.00 - Solidarity Saudi Takaful Co 16.34 1.62 226,434 Gulf Investment House Ksc 33.50 -4.83 37,060 Construction Materials Ind 0.03 0.00 - Amana Cooperative Insurance 17.16 0.88 222,367 Boubyan Bank K.S.C 405.00 -0.25 561,490 Computer Stationery Inds 0.26 0.00 - Alabdullatif Industrial Inv 12.82 1.34 73,364 Ahli United Bank B.S.C 206.00 0.49 752,908 Bankmuscat Saog 0.37 0.00 2,265,360 Saudi Printing & Packaging C 16.90 6.16 4,945,059 Osos Holding Group Co 122.00 1.67 1,000 Bank Sohar 0.15 0.00 471,993 Sanad Cooperative Insurance 0.00 0.00 - Al-Eid Food Ksc 90.00 0.00 1 Bank Nizwa 0.09 -1.06 466,651 Saudi Paper Manufacturing Co 6.99 0.43 1,325,115 Qurain Petrochemical Industr 334.00 0.00 44,532 Bank Dhofar Saog 0.23 0.45 408,858 Alinma Bank 15.32 -0.07 25,207,263 Advanced Technology Co 0.00 0.00 - Areej Vegetable Oils Saoc 0.00 0.00 - Almarai Co 92.92 -1.80 292,126 Ekttitab Holding Co Sak 36.00 -5.26 74,900 Aloula Co 0.53 0.00 - Falcom Saudi Equity Etf 29.80 0.34 70,000 Kout Food Group Ksc 0.00 0.00 - Al-Omaniya Financial Service 0.28 0.00 - QATAR United International Transpo 21.08 1.79 908,716 Real Estate Trade Centers Co 43.50 0.00 100 Al-Hassan Engineering Co 0.05 0.00 205,880 Hsbc Amanah Saudi 20 Etf 27.70 0.00 250 Acico Industries Co Kscc 262.00 0.00 3,500 Al-Fajar Al-Alamia Co 0.75 0.00 - Company Name Lt Price % Chg Volume Saudi International Petroche 14.20 0.21 616,028 Kipco Asset Management Co 80.50 0.00 1,075 Al-Anwar Ceramic Tiles Co 0.13 -1.52 182,388 Falcom Petrochemical Etf 26.70 0.00 250 National Petroleum Services 1,387.00 15.01 1,590 Al Suwadi Power 0.18 0.00 - Zad Holding Co 74.70 -3.49 500 Walaa Cooperative Insurance 27.57 0.25 214,959 Alimtiaz Investment Co Kscc 158.00 1.28 6,105,940 Al Shurooq Inv Ser 0.00 0.00 - Widam Food Co 54.00 2.66 10,007 Bank Al-Jazira 11.74 0.00 4,632,439 Ras Al Khaimah White Cement 90.00 0.00 167 Al Sharqiya Invest Holding 0.11 0.00 400 Vodafone Qatar 8.10 0.00 1,576,210 Al Rajhi Bank 68.59 -0.72 4,625,011 Kuwait Reinsurance Co Ksc 188.00 3.59 175,340 Al Maha Petroleum Products M 1.40 0.00 - United Development Co 16.70 0.66 814,690 Samba Financial Group 26.01 0.31 1,648,347 Kuwait & Gulf Link Transport 60.00 0.00 50,000 Al Maha Ceramics Co Saoc 0.33 0.00 - Salam International Investme 8.99 0.00 114,273 United Electronics Co 32.39 0.25 179,728 Human Soft Holding Co Ksc 3,940.00 -6.17 18,235 Al Madina Takaful Co Saoc 0.11 -1.74 553,368 Qatar & Oman Investment Co 8.05 0.75 6,808 Allied Cooperative Insurance 12.52 1.46 151,249 Automated Systems Co Kscc 175.00 0.00 60,025 Al Madina Investment Co 0.07 0.00 34,000 Qatar Navigation 73.90 -0.81 71,015 Malath Insurance 18.70 -0.11 39,836 Metal & Recycling Co 88.00 -1.12 1,055 Al Kamil Power Co 0.31 0.00 - Qatar National Cement Co 65.00 2.04 24,270 Alinma Tokio Marine 23.94 1.83 72,970 Gulf Franchising Holding Co 65.00 0.00 6,000 Al Jazerah Services -Pfd 0.55 0.00 - Qatar National Bank 127.00 1.20 280,860 Arabian Shield Cooperative 47.90 -0.21 128,534 Al-Enma’a Real Estate Co 38.00 0.00 350,000 Al Jazeera Steel Products Co 0.25 0.00 - Qatar Islamic Insurance 65.90 3.29 253,889 Savola 49.81 -0.28 910,176 National Mobile Telecommuni 1,100.00 4.27 7,838 Al Jazeera Services 0.16 0.00 - Qatar Industrial Manufactur 40.15 2.82 7,111 Wafrah For Industry And Deve 21.24 -0.09 190,480 Al Bareeq Holding Co Kscc 0.00 0.00 - Al Izz Islamic Bank 0.08 -2.41 55,000 Qatar International Islamic 54.00 -0.74 65,791 Fitaihi Holding Group 12.77 1.51 71,206 Housing Finance Co Sak 0.00 0.00 - Al Buraimi Hotel 0.88 0.00 - Qatari Investors Group 44.40 -1.11 28,843 Tourism Enterprise Co/ Shams 28.49 1.79 117,004 Al Salam Group Holding Co 45.50 0.00 361,000 Al Batinah Power 0.14 0.00 - Qatar Islamic Bank 87.70 0.69 199,115 Sahara Petrochemical Co 13.26 0.68 659,877 United Foodstuff Industries 0.00 0.00 - Al Batinah Hotels 1.13 0.00 - Qatar Gas Transport(Nakilat) 17.00 0.00 615,361 Herfy Food Services Co 55.82 -1.36 71,757 Al Aman Investment Company 42.20 -0.47 184,000 Al Batinah Dev & Inv 0.09 2.17 584,383 Qatar General Insurance & Re 31.45 0.00 - Mashaer Holdings Co Ksc 0.00 0.00 - Al Anwar Holdings Saog 0.16 -1.22 46,150 Qatar German Co For Medical 7.30 2.38 19,531 Manazel Holding 44.90 -2.39 138,056 Ahli Bank 0.17 -2.94 272,910 Qatar Fuel Qsc 105.40 1.84 90,172 Mushrif Trading & Contractin 0.00 0.00 - Acwa Power Barka Saog 0.80 0.00 - Qatar First Bank 7.57 0.13 939,685 KUWAIT Tijara And Real Estate Inves 57.50 0.00 8,849 Abrasives Manufacturing Co S 0.05 0.00 - Qatar Electricity & Water Co 185.10 -1.54 49,488 Kuwait Building Materials 0.00 0.00 - A’saff a Foods Saog 0.59 0.00 - Qatar Cinema & Film Distrib 26.90 9.57 11 Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 472.00 -0.42 55,836 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Insurance Co 69.80 4.65 104,102 Commercial Real Estate Co 72.80 -1.62 477,950 Ooredoo Qsc 94.50 5.82 125,723 Securities Group Co 96.90 0.00 50 Future Communications Co 0.00 0.00 - National Leasing 13.75 0.36 1,037,647 Sultan Center Food Products 0.00 0.00 - National International Co 60.00 0.00 11,155 Mazaya Qatar Real Estate Dev 10.30 1.48 441,560 Kuwait Foundry Co Sak 254.00 -12.41 183,258 Taameer Real Estate Invest C 30.80 0.65 159,812 UAE Mesaieed Petrochemical Holdi 13.00 2.69 103,344 Kuwait Financial Centre Sak 109.00 0.00 1,350 Gulf Cement Co 74.00 0.00 160,000 Al Meera Consumer Goods Co 131.00 0.69 22,987 Ajial Real Estate Entmt 138.00 0.00 4,100 Heavy Engineering And Ship B 206.00 -4.63 18,671 Company Name Lt Price % Chg Volume Medicare Group 81.00 2.79 69,493 Gulf Glass Manuf Co -Kscc 0.00 0.00 - Refrigeration Industries & S 0.00 0.00 - Mannai Corporation Qsc 72.00 0.14 622 Kuwait Finance & Investment 43.00 7.50 500 National Real Estate Co 114.00 5.56 1,053,051 Waha Capital Pjsc 1.72 -0.58 1,090,256 Masraf Al Rayan 39.00 1.04 564,091 National Industries Co Ksc 198.00 4.21 500 Al Safat Energy Holding Comp 38.00 -2.56 11,600 United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 12.90 1.57 2,300 Kuwait Real Estate Holding C 35.00 -9.09 1,500 Kuwait National Cinema Co 1,160.00 -16.55 15 United Arab Bank Pjsc 1.40 0.00 - Industries Qatar 93.90 0.00 272,695 Securities House/The 40.00 -1.23 256,605 Danah Alsafat Foodstuff Co 71.00 -5.33 150,100 Union National Bank/Abu Dhab 4.70 0.00 513,083 Islamic Holding Group 47.40 -0.84 139,118 Boubyan Petrochemicals Co 570.00 0.00 70,000 Independent Petroleum Group 330.00 -8.33 1,000 Union Insurance Co 1.86 0.00 - Gulf Warehousing Company 43.65 -2.89 17,976 Al Ahli Bank Of Kuwait 327.00 0.00 3,100 Kuwait Real Estate Co Ksc 54.90 1.48 65,667 Union Cement Co 1.20 0.00 - Gulf International Services 19.90 4.35 87,290 Ahli United Bank (Almutahed) 400.00 -3.61 370,624 Salhia Real Estate Co Ksc 390.00 0.00 250,000 Umm Al Qaiwain Cement Indust 1.61 0.00 - Ezdan Holding Group 12.25 -0.33 350,961 National Bank Of Kuwait 686.00 -0.58 978,625 Gulf Cable & Electrical Ind 415.00 -1.19 501 Sharjah Islamic Bank 1.33 3.10 33,970 Doha Insurance Co 14.25 1.79 3,940 Commercial Bank Of Kuwait 304.00 -2.25 83,200 Al Nawadi Holding Co Ksc 0.00 0.00 - Sharjah Insurance Company 3.85 0.00 - Doha Bank Qsc 29.95 3.28 462,831 Kuwait International Bank 245.00 0.41 78,936 Kuwait Finance House 478.00 -1.04 3,083,127 Sharjah Group 1.50 0.00 - Dlala Holding 19.10 0.00 17,318 Gulf Bank 240.00 -2.83 460,000 Gulf North Africa Holding Co 36.30 0.00 40,100 Sharjah Cement & Indus Devel 0.95 0.00 - Commercial Bank Qsc 29.90 3.10 127,323 Al-Massaleh Real Estate Co 39.90 5.00 70 Hilal Cement Co 0.00 0.00 - Ras Al-Khaimah National Insu 4.10 0.00 - Barwa Real Estate Co 32.00 0.79 513,969 Al Arabiya Real Estate Co 33.30 2.46 28,442 Osoul Investment Kscc 59.00 0.00 10,500 Ras Al Khaimah White Cement 1.06 0.00 - Al Khaleej Takaful Group 16.50 -1.26 2,437 Kuwait Remal Real Estate Co 55.00 -14.73 522,714 Gulf Insurance Group Ksc 530.00 0.00 35,000 Ras Al Khaimah Ceramics 2.50 0.00 388,450 Aamal Co 10.72 0.37 190,355 Alkout Industrial Projects C 590.00 0.00 76,481 Kuwait Food Co (Americana) 2,300.00 -6.12 50 Ras Al Khaimah Cement Co Psc 0.80 3.90 36,685 Al Ahli Bank 32.00 -3.03 20 A’ayan Real Estate Co Sak 84.10 -1.06 582,601 Umm Al Qaiwain Cement Indust 0.00 0.00 - Ras Al Khaima Poultry 3.70 0.00 - Investors Holding Group Co.K 22.50 0.45 1,747,380 Aayan Leasing & Investment 39.40 -5.74 2,510,997 Rak Properties 0.63 -1.56 5,201,982 Al-Mazaya Holding Co 109.00 -0.91 1,234,396 Alrai Media Group Co Ksc 121.00 -1.63 14,000 Ooredoo Qsc 85.00 2.29 456 SAUDI ARABIA Al-Madar Finance & Invt Co 20.00 -1.96 1,335,310 National Investments Co 100.00 1.01 1,460,924 Oman & Emirates Inv(Emir)50% 0.58 0.00 - Gulf Petroleum Investment 38.00 0.26 100 Commercial Facilities Co 171.00 0.00 65,000 Nbad Oneshare Msci Uae Ucits 6.20 0.00 - National Takaful Company 0.00 Company Name Lt Price % Chg Volume Mabanee Co Sakc 751.00 -2.34 558,785 Taiba Kuwaiti Holding Co Ksc 0.00 0.00 - 0.66 - City Group 0.00 0.00 - Afaq Educational Services Co 130.00 0.00 450 National Marine Dredging Co 4.50 0.00 - United Wire Factories Compan 18.98 1.23 244,958 Inovest Co Bsc 104.00 2.97 30,700 Kuwait Pillars For Financial 0.00 0.00 - National Investor Co/The 0.54 0.00 - Etihad Etisalat Co 20.45 0.20 209,862 Kuwait Gypsum Manufacturing 0.00 0.00 - Yiaco Medical Co. K.S.C.C 160.00 3.90 12,800 National Corp Tourism & Hote 2.45 0.00 36,664 Dar Al Arkan Real Estate Dev 6.49 -2.55 41,865,801 Al-Deera Holding Co 31.90 0.00 500 Dulaqan Real Estate Co 0.00 0.00 - National Bank Of Umm Al Qaiw 3.10 0.00 - Saudi Hollandi Bank 0.00 0.00 - Alshamel International Hold 0.00 0.00 - National Bank Of Ras Al-Khai 4.35 -0.23 37,923 Rabigh Refining And Petroche 11.74 0.51 934,754 Mena Real Estate Co 23.20 2.65 227,580 National Bank Of Fujairah 3.00 -8.81 100,000 Banque Saudi Fransi 31.05 1.84 549,831 National Slaughter House 0.00 0.00 - First Abu Dhabi Bank Pjsc 0.00 0.00 - Saudi Enaya Cooperative Insu 15.20 0.33 95,219 Amar Finance & Leasing Co 50.00 0.00 107,500 OMAN Methaq Takaful Insurance 0.85 -1.16 4,349,571 Manazel Real Estate Pjsc 0.52 1.96 2,709,405 Mediterranean & Gulf Insuran 16.50 0.61 257,156 United Projects For Aviation 851.00 0.00 3 Company Name Lt Price % Chg Volume Saudi British Bank 26.68 1.02 604,227 National Consumer Holding Co 119.00 0.00 10 Invest Bank 2.50 0.00 - Mohammad Al Mojil Group Co 0.00 0.00 - Amwal International Investme 44.10 -6.17 70 Voltamp Energy Saog 0.48 0.00 111 Intl Fish Farming Co Pjsc 1.45 3.57 177,000 Red Sea International Co 20.10 1.88 211,501 Jeeran Holdings 41.00 0.00 186,200 United Power/Energy Co- Pref 1.00 0.00 - Insurance House 0.83 0.00 - Takween Advanced Industries 11.30 0.44 283,005 Equipment Holding Co K.S.C.C 48.00 0.00 95,000 United Power Co Saog 3.55 0.00 - Gulf Pharmaceutical Ind Psc 2.33 0.00 - Sabb Takaful 26.09 3.04 139,581 Nafais Holding 0.00 0.00 - United Finance Co 0.14 0.00 296 Gulf Medical Projects 4.11 0.00 - Saudi Arabian Fertilizer Co 63.97 -0.25 116,591 Safwan Trading & Contracting 0.00 0.00 - Ubar Hotels & Resorts 0.13 0.00 - Gulf Cement Co 0.88 0.00 - National Gypsum 12.20 0.66 42,474 Arkan Al Kuwait Real Estate 83.60 0.72 253,000 Takaful Oman 0.17 0.00 - Fujairah Cement Industries 1.14 0.00 - Saudi Ceramic Co 29.55 0.07 62,594 Gfh Financial Group Bsc 180.00 6.51 289,418 Taageer Finance 0.12 0.00 - Fujairah Building Industries 1.56 0.00 - National Gas & Industrializa 33.37 1.12 131,378 Energy House Holding Co Kscp 34.50 -11.54 53,455 Sweets Of Oman 1.34 0.00 - Foodco Holding Pjsc 6.00 0.00 - Saudi Pharmaceutical Industr 35.09 -0.43 68,512 Kuwait Slaughter House Co 0.00 0.00 - Sohar Power Co 0.16 0.00 - First Gulf Bank 0.00 0.00 - Thimar 32.65 1.49 274,320 Kuwait Co For Process Plant 165.00 0.00 8,461 Sohar Poultry 0.21 0.00 - Finance House 1.60 0.00 188 National Industrialization C 14.35 2.28 1,137,548 Al Maidan Dental Clinic Co K 0.00 0.00 - Smn Power Holding Saog 0.69 -1.14 39,400 Eshraq Properties Co Pjsc 0.95 0.00 44,614,578 Saudi Transport And Investme 0.00 0.00 - National Ranges Company 27.10 -0.37 47,860 Shell Oman Marketing - Pref 1.05 0.00 - Emirates Telecom Group Co 17.50 0.57 665,439 Saudi Electricity Co 25.88 2.09 2,471,124 Al-Themar Real International 0.00 0.00 - Shell Oman Marketing 1.88 0.00 5,000 Emirates Insurance Co. (Psc) 5.98 0.00 - Saudi Arabia Refineries Co 32.39 0.93 65,381 Al-Ahleia Insurance Co Sakp 480.00 0.00 100 Sharqiyah Desalination Co Sa 4.35 -0.11 4,395 Emirates Driving Company 8.10 0.00 - Arriyadh Development Company 19.78 -0.10 117,692 Wethaq Takaful Insurance Co 55.00 -1.79 500 Sembcorp Salalah Power & Wat 0.21 0.00 - Dana Gas 0.70 6.06 124,508,806 Al-Baha Development & Invest 20.98 9.90 2,106,492 Salbookh Trading Co Kscp 58.80 0.00 1 Salalah Port Services 0.63 0.00 - Commercial Bank Internationa 1.10 0.00 - Saudi Research And Marketing 35.90 9.95 974,221 Aqar Real Estate Investments 66.20 0.00 473,560 Salalah Mills Co 1.33 0.00 - Bank Of Sharjah 1.23 -2.38 31,250 Aldrees Petroleum And Transp 24.04 0.21 106,152 Hayat Communications 86.00 0.00 164,800 Salalah Beach Resort Saog 1.38 0.00 - Axa Green Crescent Insurance 0.75 0.00 - Saudi Vitrified Clay Pipe Co 50.99 0.18 39,849 Kuwait Packing Materials Mfg 0.00 0.00 - Sahara Hospitality 2.50 0.00 - Arkan Building Materials Co 0.69 2.99 9,609 Jarir Marketing Co 142.41 -1.10 61,082 Soor Fuel Marketing Co Ksc 119.00 0.00 27,675 Renaissance Services Saog 0.21 0.00 - Alkhaleej Investment 1.30 0.00 - Arab National Bank 22.53 1.17 1,056,674 Alargan International Real 160.00 -13.98 11,500 Raysut Cement Co 0.99 0.00 63,395 Aldar Properties Pjsc 2.32 0.87 13,238,276 Yanbu National Petrochemical 54.89 -2.30 311,981 Burgan Co For Well Drilling 60.00 -9.77 432 Port Service Corporation 0.22 0.00 - Al Wathba National Insurance 12.75 0.00 - Arabian Cement 36.30 0.44 118,736 Kuwait Resorts Co Kscc 81.50 0.00 62,544 Phoenix Power Co Saoc 0.12 0.86 300,309 Al Khazna Insurance Co 0.45 0.00 - Middle East Specialized Cabl 6.43 0.16 280,535 Oula Fuel Marketing Co 118.00 -1.67 486,482 Packaging Co Ltd 2.21 0.00 - Al Fujairah National Insuran 300.00 0.00 - Al Khaleej Training And Educ 16.58 -0.12 113,385 Palms Agro Production Co 100.00 0.00 20,574 Ooredoo 0.45 0.00 1,269,065 Al Dhafra Insurance Co. P.S. 3.84 0.00 - Al Sagr Co-Operative Insuran 29.75 5.16 937,581 Ikarus Petroleum Industries 0.00 0.00 - Ominvest 0.51 -1.55 60,093 Al Buhaira National Insuranc 2.20 0.00 - Trade Union Cooperative Insu 17.29 1.59 165,517 Mubarrad Transport Co 74.00 -5.13 35,000 Oman United Insurance Co 0.34 0.00 - Al Ain Ahlia Ins. Co. 47.00 0.00 - Arabia Insurance Cooperative 15.11 0.94 418,776 Al Mowasat Health Care Co 453.00 0.00 20,000 Oman Textile Holding Co Saog 0.57 0.00 - Agthia Group Pjsc 5.52 0.36 157,074 Saudi Chemical Company 38.46 -0.47 68,730 Shuaiba Industrial Co 300.00 0.00 1,400 Oman Telecommunications Co 1.12 -1.76 570,354 Abu Dhabi Ship Building Co 2.87 0.00 - Fawaz Abdulaziz Alhokair & C 40.52 -1.89 365,797 Hits Telecom Holding 39.00 1.30 809,933 Oman Refreshment Co 2.00 0.00 - Abu Dhabi Natl Co For Buildi 0.54 0.00 44,472 Bupa Arabia For Cooperative 129.83 0.38 147,706 First Takaful Insurance Co 49.00 -18.33 48,629 Oman Packaging 0.28 0.00 - Abu Dhabi National Takaful C 5.14 0.00 - Wafa Insurance 21.34 3.29 810,678 Kuwaiti Syrian Holding Co 33.00 0.00 33,727 Oman Orix Leasing Co. 0.17 0.00 - Abu Dhabi National Insurance 2.95 0.00 - Jabal Omar Development Co 75.00 1.32 418,095 National Cleaning Company 45.00 0.00 1,050 Oman Oil Marketing Company 1.66 0.00 - Abu Dhabi National Hotels 3.09 0.00 - Saudi Basic Industries Corp 102.93 -0.03 4,160,466 Eyas For High & Technical Ed 766.00 0.79 61,160 Oman National Engineering An 0.13 0.00 10,000 Abu Dhabi National Energy Co 0.50 0.00 12,958,605 Saudi Kayan Petrochemical Co 8.99 0.67 3,449,376 United Real Estate Company 84.90 0.00 20 Oman Investment & Finance 0.18 0.00 - Abu Dhabi Islamic Bank 3.52 -1.68 94,638 Etihad Atheeb Telecommunicat 8.33 -0.60 158,259 Agility 818.00 -0.49 1,112,316 Oman Intl Marketing 0.52 0.00 - Co For Cooperative Insurance 99.70 0.64 77,943 Kuwait & Middle East Fin Inv 27.00 -9.70 19,500 Oman Hotels & Tourism Co 0.40 0.00 - National Petrochemical Co 18.05 -1.26 282,175 Fujairah Cement Industries 82.80 -0.24 1,414 Oman Foods International 0.00 0.00 - Gulf Union Cooperative Insur 17.03 0.83 65,062 Livestock Transport & Tradng 221.00 -5.56 6,015 Oman Flour Mills 0.89 0.00 - BAHRAIN Gulf General Cooperative Ins 15.12 1.61 215,224 International Resorts Co 29.80 -6.58 70,002 Oman Fisheries Co 0.14 -3.38 933,944 Basic Chemical Industries 21.16 -0.19 34,370 National Industries Grp Hold 113.00 1.80 566,620 Oman Fiber Optics 0.00 0.00 - Company Name Lt Price % Chg Volume Saudi Steel Pipe Co -0.32 Marine Services Co Ksc -11.27 Oman Europe Foods Industries 1.00 0.00 - 15.65 35,394 63.00 51,125 Zain Bahrain Bscc 0.00 0.00 - Buruj Cooperative Insurance 3.25 Warba Insurance Co -4.00 Oman Education & Training In 0.16 0.00 - 30.17 482,825 81.60 225 United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co -5.01 Kuwait United Poultry Co 0.00 Oman Chromite 3.64 0.00 - 150.08 65,748 0.00 - United Gulf Investment Corp 0.00 0.00 - Southern Province Cement Co 0.19 First Dubai Real Estate Deve -0.43 Oman Chlorine 0.49 0.00 - 54.10 24,428 46.80 453,250 United Gulf Bank 0.00 0.00 - Maadaniyah 1.19 Al Arabi Group Holding Co 8.97 Oman Ceramic Company 0.42 0.00 - 21.20 122,043 85.00 100 Trafco Group Bsc 0.27 0.00 10,069 Yamama Cement Co -0.06 Kuwait Hotels Sak 0.00 Oman Cement Co 0.45 0.00 61,688 17.66 84,058 0.00 - Takaful International Co 0.00 0.00 - Jazan Development Co 0.07 Mobile Telecommunications Co -0.48 Oman Cables Industry 1.59 0.00 - 14.60 134,077 411.00 1,538,759 Taib Bank -$Us 0.00 0.00 - Zamil Industrial Investment 0.00 Al Safat Real Estate Co 0.00 Oman Agricultural Dev 0.00 0.00 - 28.15 38,800 0.00 - Seef Properties 0.24 0.00 320,000 Alujain Corporation (Alco) 0.58 Tamdeen Real Estate Co Ksc 0.00 Oman & Emirates Inv(Om)50% 0.10 0.00 3,400 22.47 612,253 400.00 100 Securities & Investment Co 0.00 0.00 - Tabuk Agricultural Developme 1.33 Al Mudon Intl Real Estate Co -0.29 Natl Aluminium Products 0.16 0.00 - 13.70 2,662,967 34.80 37,000 National Hotels Co 0.00 0.00 - United Co-Operative Assuranc 1.51 Kuwait Cement Co Ksc 0.00 National Securities 0.05 0.00 - 14.15 379,384 460.00 100 National Bank Of Bahrain Bsc 0.67 0.00 2,362 Qassim Cement/The 0.02 Sharjah Cement & Indus Devel -5.68 National Real Estate Develop 5.00 0.00 - 49.96 26,882 78.00 3,047 Nass Corp Bsc 0.13 0.00 50,000 Saudi Advanced Industries 1.25 Kuwait Portland Cement Co 0.00 National Pharmaceutical 0.11 0.00 - 12.19 536,860 920.00 26,500 Khaleeji Commercial Bank 0.10 0.00 599,000 Kingdom Holding Co -0.30 Educational Holding Group -0.27 National Mineral Water 0.05 0.00 - 9.93 47,444 370.00 604,905 Ithmaar Holding Bsc 0.14 -3.45 275,560 Saudi Arabian Amiantit Co -0.36 Bahrain Kuwait Insurance 0.00 National Hospitality Institu 0.00 0.00 - 5.53 973,543 0.00 - Investcorp Bank -$Us 8.60 0.00 2,200 Al Jouf Agriculture Developm 0.75 Asiya Capital Investments Co 0.00 National Gas Co 0.37 -2.63 12,637 29.72 38,877 43.90 1,132,300 Inovest Co Bsc 0.39 0.00 17,000 Saudi Industrial Development 1.23 Kuwait Investment Co -0.10 National Finance Co 0.14 0.00 - 11.55 1,054,069 96.30 5,608 Gulf Monetary Group 0.00 0.00 - Bishah Agriculture 0.00 Burgan Bank -0.30 National Detergent Co Saog 0.69 0.00 - 0.00 - 331.00 292,025 Gulf Hotel Group B.S.C 0.52 0.00 20,000 Riyad Bank 1.18 Kuwait Projects Co Holdings -0.89 National Biscuit Industries 3.75 0.00 - 11.12 1,667,159 333.00 398,866 Gfh Financial Group Bsc 0.62 2.50 1,563,500 The National Agriculture Dev 1.03 Al Madina For Finance And In 8.80 National Bank Of Oman Saog 0.21 0.00 139,929 27.53 588,346 47.00 102 Esterad Investment Co B.S.C. 0.11 0.00 41,157 Halwani Bros Co 2.81 Kuwait Insurance Co 0.00 Muscat Thread Mills Co 0.08 0.00 - 51.92 85,365 250.00 319 Delmon Poultry Co 0.00 0.00 - Arabian Pipes Co -1.04 Al Masaken Intl Real Estate 0.00 Muscat National Holding 0.86 0.00 - 13.27 354,747 77.00 1 Bmmi Bsc 0.80 1.27 2,000 Eastern Province Cement Co -0.17 Intl Financial Advisors -1.18 Muscat Gases Company Saog 0.56 0.00 - 24.08 27,953 33.60 307,910 Bmb Investment Bank 0.00 0.00 - Al Gassim Investment Holding 0.00 First Investment Co Kscc 1.34 Muscat Finance 0.12 0.00 - 0.00 - 45.50 1,181,100 Bbk Bsc 0.39 0.51 12,500 Filing & Packing Materials M 2.36 Al Mal In 0.00 Majan Glass Company 0.19 0.00 - 34.25 64,738 vestment Company 0.00 - Bankmuscat Saog 0.00 0.00 - Saudi Cable Co 0.00 -0.82 Majan College 0.49 0.00 - 10.81 - Bayan Investment Co Kscc 48.50 22,650 Banader Hotels Co 0.00 0.00 - Tihama Advertising & Public 0.70 0.56 Hsbc Bank Oman 0.12 0.81 143,634 33.00 723,864 Egypt Kuwait Holding Co Sae 180.00 1,505,000 Bahrain Tourism Co ` 0.00 - Saudi Investment Bank/The 1.31 -1.23 Hotels Management Co Interna 1.25 0.00 - 13.14 212,560 Coast Investment Development 40.00 57,600 Bahrain Telecom Co 0.24 -0.83 64,000 Astra Industrial Group 0.00 2.06 Gulf Stone 0.12 0.00 - 15.29 47,555 Privatization Holding Compan 49.50 37,224 Bahrain Ship Repair & Engin 0.00 0.00 - Saudi Public Transport Co 0.57 0.00 Gulf Plastic Industries Co 0.00 0.00 - 14.23 859,937 Kuwait Medical Services Co 0.00 - Bahrain National Holding 0.43 0.00 26,240 Taiba Holding Co 0.69 -2.17 Gulf Mushroom Company 0.31 0.00 - 42.54 58,275 Injazzat Real State Company 90.00 16,000 Bahrain Kuwait Insurance 0.00 0.00 - Saudi Industrial Export Co 1.96 -3.33 Gulf Investments Services 0.08 0.00 - 29.60 240,256 Kuwait Cable Vision Sak 29.00 65,428 Bahrain Islamic Bank 0.14 0.00 17,609 Saudi Real Estate Co 0.05 0.00 Gulf Invest. Serv. Pref-Shar 0.11 0.00 - 21.24 308,413 Sanam Real Estate Co Kscc 0.00 - Bahrain Flour Mills Co 0.00 0.00 - Saudia Dairy & Foodstuff Co 0.33 -1.14 Gulf International Chemicals 0.23 0.00 5,000 121.80 5,023 Ithmaar Holding Bsc 43.40 4,479,515 Bahrain Family Leisure Co 0.00 0.00 - National Shipping Co Of/The 0.48 0.00 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - 37.45 985,461 Aviation Lease And Finance C 315.00 1,000 Bahrain Duty Free Complex 0.76 0.00 4,000 Methanol Chemicals Co 0.45 -6.38 Global Fin Investment 0.16 0.00 - 6.65 430,983 Arzan Financial Group For Fi 32.30 18,500 Bahrain Commercial Facilitie 0.73 0.00 5,480 Ace Arabia Cooperative Insur 1.56 8.70 Galfar Engineering&Contract 0.08 0.00 233,853 45.64 46,860 Ajwan Gulf Real Estate Co 80.00 49,000 Bahrain Cinema Co 1.35 0.00 47,175 Mobile Telecommunications Co 0.00 1.27 Galfar Engineering -Prefer 0.39 0.00 - 9.15 1,095,681 Kuwait Business Town Real Es 48.00 1,000 Bahrain Car Park Co 0.00 0.00 - Saudi Arabian Coop Ins Co 2.86 0.00 Financial Services Co. 0.11 0.00 - 20.16 443,040 Future Kid Entertainment And 107.00 11,000 Arab Insurance Group(Bsc)-$ 0.47 0.00 108,025 Axa Cooperative Insurance 0.66 -1.01 Financial Corp/The 0.10 0.00 - 22.71 318,649 Specialities Group Holding C 88.00 24,040 Arab Banking Corp Bsc-$Us 0.30 0.00 250,000 Alsorayai Group -0.24 -1.75 Dhofar University 0.00 0.00 - 8.20 304,093 Abyaar Real Eastate Developm 22.50 1,357,231 Aluminium Bahrain Bsc 0.48 -2.04 107,138 Weqaya For Takaful Insurance 0.00 0.00 Dhofar Tourism 0.49 0.00 - 0.00 - Dar Al Thuraya Real Estate C 0.00 - Albaraka Banking Group 0.42 0.00 83,800 Bank Albilad -0.21 0.00 Dhofar Poultry 0.18 0.00 - 18.86 155,063 Al-Dar National Real Estate 0.00 - Al-Salam Bank 0.09 0.00 485,859 Al-Hassan G.I. Shaker Co 0.46 0.00 Dhofar Intl Development 0.30 0.00 - 13.03 485,378 Kgl Logistics Company Kscc 50.90 261,490 Al-Ahlia Insurance Co 0.00 0.00 - Wataniya Insurance Co 2.01 0.00 Dhofar Insurance 0.20 0.00 - 27.39 166,795 Combined Group Contracting 619.00 50 Ahli United Bank B.S.C 0.68 -0.73 212,500 Abdullah Al Othaim Markets 113.40 -1.55 49,476 Zima Holding Co Ksc 50.90 0.00 56,500 Dhofar Fisheries & Food Indu 1.28 0.00 - Hail Cement 9.69 0.21 214,850 Qurain Holding Co 0.00 0.00 - Dhofar Cattlefeed 0.19 0.00 - LATEST MARKET CLOSING FIGURES Gulf Times 8 Tuesday, July 4, 2017 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 21,365.92 +78.89 Apple Inc 144.39 0.49 9,469,329 S&P 500 Index 2,425.01 +5.31 Microsoft Corp 68.92 0.63 9,782,886 Nasdaq Composite Index 6,153.20 +8.85 Exxon Mobil Corp 81.04 0.42 4,194,821 S&P/Tsx Composite Index 15,172.22 -41.20 Johnson & Johnson 132.52 -0.09 1,359,104 Mexico Bolsa Index 49,645.16 +447.03 General Electric Co 26.98 -0.13 8,440,049 Brazil Bovespa Stock Idx 62,825.91 +586.96 Jpmorgan Chase & Co 91.34 0.20 6,757,038 Ftse 100 Index 7,312.72 -37.60 Procter & Gamble Co/The 87.16 0.20 1,474,881 Cac 40 Index 5,120.68 -33.67 Wal-Mart Stores Inc 75.85 -0.11 1,841,442 Dax Index 12,325.12 -91.07 Verizon Communications Inc 44.46 0.11 4,304,447 Ibex 35 Tr 10,444.50 -86.60 Pfizer Inc 33.64 0.01 3,920,522 Nikkei 225 20,033.43 -186.87 Visa Inc-Class A Shares 94.27 -0.16 3,383,084 Japan Topix 1,611.90 -12.17 Chevron Corp 104.26 0.13 1,427,648 Hang Seng Index 25,764.58 -200.84 Coca-Cola Co/The 45.01 0.39 2,537,404 All Ordinaries Indx 5,764.04 -91.81 Intel Corp 33.64 0.30 10,054,165 Nzx All Index 1,391.57 -12.91 Merck & Co. Inc. 64.11 -0.36 2,240,347 Bse Sensex 30 Index 30,921.61 +64.09 Cisco Systems Inc 31.38 -0.10 8,289,614 Nse S&P Cnx Nifty Index 9,520.90 +16.80 Home Depot Inc 153.22 0.70 963,814 Straits Times Index 3,226.48 -32.17 Intl Business Machines Corp 153.64 -0.32 1,126,864 Karachi All Share Index 32,494.30 +56.48 Walt Disney Co/The 106.21 0.47 1,950,366 Jakarta Composite Index 5,829.71 +11.16 Unitedhealth Group Inc 185.43 0.09 560,995 3M Co 208.24 0.19 486,111 Mcdonald’s Corp 153.46 0.22 752,657 Nike Inc -Cl B 58.03 9.14 23,865,444 TOKYO United Technologies Corp 122.01 0.30 598,020 Boeing Co/The 198.34 0.44 666,672 Company Name Lt Price % Chg Volume Goldman Sachs Group Inc 223.44 -0.43 1,239,524 Rakuten Inc 1,312.00 -0.76 4,634,100 American Express Co 84.34 0.84 1,217,870 Kyocera Corp 6,488.00 -0.28 850,400 Du Pont (E.I.) De Nemours 80.91 0.56 797,467 Nissan Motor Co Ltd 1,117.00 -0.09 10,905,900 Caterpillar Inc 107.23 1.51 1,538,339 Hitachi Ltd 693.70 0.62 15,242,000 Travelers Cos Inc/The 126.11 -0.22 373,852 Takeda Pharmaceutical Co Ltd 5,704.00 -0.09 1,061,800 Jfe Holdings Inc 1,985.50 1.79 5,039,500 Ana Holdings Inc 391.30 0.23 7,422,000 FTSE 100 Mitsubishi Electric Corp 1,630.50 0.93 4,660,700 Sumitomo Mitsui Financial Gr 4,388.00 0.21 6,040,100 Company Name Lt Price % Chg Volume Honda Motor Co Ltd 3,067.00 0.10 3,161,800 Fast Retailing Co Ltd 37,440.00 0.05 362,900 Wpp Plc 1,614.00 -0.86 3,472,302 Ms&Ad Insurance Group Holdin 3,761.00 -0.34 1,314,100 Worldpay Group Plc 314.80 0.87 6,352,060 An arrangement of various world currencies including Chinese yuan, US dollar, euro and British pound. During the first half Kubota Corp 1,896.00 0.45 3,514,700 Wolseley Plc 4,713.00 0.45 693,411 of the year, the euro jumped about 10% against the dollar, while the pound gained almost as much from its January lows, Seven & I Holdings Co Ltd 4,619.00 -0.19 1,259,900 Wm Morrison Supermarkets 241.20 0.71 12,593,890 despite British political uncertainty caused by the country’s decision to leave the European Union. Inpex Corp 1,087.00 0.56 3,729,100 Whitbread Plc 3,967.00 0.71 759,935 Resona Holdings Inc 624.20 0.92 11,882,400 Vodafone Group Plc 217.75 -0.34 53,967,600 Asahi Kasei Corp 1,228.00 1.70 3,944,000 United Utilities Group Plc 867.50 -3.45 5,440,310 Kirin Holdings Co Ltd 2,310.50 0.94 2,273,400 Unilever Plc 4,155.00 -0.04 2,996,530 Marubeni Corp 726.80 0.14 4,919,000 Tui Ag-Di 1,119.00 0.90 1,440,352 Mitsubishi Ufj Financial Gro 757.10 0.30 49,804,500 Travis Perkins Plc 1,455.00 0.07 1,213,483 Mitsubishi Chemical Holdings 954.60 2.63 9,154,700 Euro and pound fall back against Tesco Plc 168.80 -1.86 38,495,316 Fanuc Corp 21,675.00 0.09 577,600 Taylor Wimpey Plc 176.20 -0.28 12,983,264 Daito Trust Construct Co Ltd 17,485.00 -0.06 244,200 Standard Life Plc 399.10 1.04 7,734,242 Otsuka Holdings Co Ltd 4,792.00 0.04 958,600 Standard Chartered Plc 777.20 0.31 8,152,808 Oriental Land Co Ltd 7,606.00 -0.03 582,500 dollar on hawkish central banks St James’s Place Plc 1,182.00 0.94 1,714,432 Sekisui House Ltd 1,979.50 0.00 1,439,900 Sse Plc 1,453.00 -1.29 3,361,417 Secom Co Ltd 8,451.00 -0.87 605,700 Smith & Nephew Plc 1,325.00 0.15 2,190,122 Tokio Marine Holdings Inc 4,651.00 0.00 1,754,900 Sky Plc 994.00 0.61 18,271,685 AFP During the fi rst half of the year, the sandwiched between the weekend and Aeon Co Ltd 1,704.00 -0.18 1,644,600 Shire Plc 4,238.00 -0.47 2,580,833 euro jumped about 10% against the the July 4 bank holiday. Mitsui & Co Ltd 1,601.50 -0.25 4,748,100 London Severn Trent Plc 2,182.00 -1.93 1,190,702 dollar, while the pound gained almost Eurozone markets reacted well to Kao Corp 6,713.00 0.61 1,297,100 Schroders Plc 3,104.00 0.81 945,592 as much from its January lows, despite regional manufacturing PMI data, but Dai-Ichi Life Holdings Inc 2,016.00 -0.52 5,169,100 Sainsbury (J) Plc 251.70 -1.53 11,153,242 Mazda Motor Corp 1,560.00 -0.51 3,891,600 he euro and pound fell against British political uncertainty caused by the UK’s manufacturing reading came Sage Group Plc/The 688.00 0.81 3,228,460 Komatsu Ltd 2,865.50 0.39 3,324,200 the dollar yesterday, ending a the country’s decision to leave the Eu- in at a three-year low of 54.3, which Sabmiller Plc 0.00 0.00 - West Japan Railway Co 8,092.00 1.97 554,300 strong rally triggered by cen- ropean Union. “doesn’t bode well for the country’s Rsa Insurance Group Plc 615.50 0.82 3,623,363 T Murata Manufacturing Co Ltd 16,995.00 -0.44 654,800 Royal Mail Plc 421.20 1.47 4,143,657 tral banks signalling tighter monetary Some analysts said that the dol- second-quarter growth”, noted Sprea- Kansai Electric Power Co Inc 1,555.50 0.55 1,845,000 Royal Dutch Shell Plc-B Shs 2,062.50 -1.53 6,986,536 policy in reaction to solid economic lar’s recovery yesterday might well be dex analyst Connor Campbell. “While Denso Corp 4,763.00 0.44 1,061,300 Royal Dutch Shell Plc-A Shs 2,035.00 -1.29 6,511,827 growth and high infl ation. short-lived, with its downward trend the UK economy suff ered its latest set- Sompo Holdings Inc 4,336.00 -0.07 1,080,600 Royal Bank Of Scotland Group 247.20 -2.25 9,696,775 Daiwa House Industry Co Ltd 3,803.00 -0.91 1,250,900 As the year’s second half got un- resuming as the summer wears on. back, the eurozone continued to power Rolls-Royce Holdings Plc 891.00 -0.61 6,338,084 Jxtg Holdings Inc 496.50 1.18 12,884,200 der way, European stock markets re- “After last week’s breakdown, the ahead, with the region’s own manufac- Rio Tinto Plc 3,242.00 0.29 4,679,595 Nippon Steel & Sumitomo Meta 2,575.50 1.48 3,736,600 bounded from heavy falls ahead of the small rebound at the start of this week turing PMI arriving at a six-year peak Rexam Ltd 0.00 0.00 - Suzuki Motor Corp 5,293.00 -0.69 1,112,600 of 57.4,” he added in a note to clients. Relx Plc 1,660.00 0.67 5,052,538 weekend. could prove to be a dead-cat bounce,” Nippon Telegraph & Telephone 5,317.00 0.13 2,258,700 Reckitt Benckiser Group Plc 7,784.00 1.26 1,622,918 The dollar last week tumbled after said Fawad Razaqzada, Market Analyst Elsewhere yesterday, Tokyo’s Nikkei Ajinomoto Co Inc 2,411.00 -0.64 1,174,700 Randgold Resources Ltd 6,805.00 0.29 537,986 the ECB, the Bank of England and the at Forex.com. stocks index edged up 0.1%, helped by Mitsui Fudosan Co Ltd 2,666.50 -0.52 2,025,100 Prudential Plc 1,761.00 -1.10 4,642,673 Bank of Canada indicated that the age European equity markets had a a slightly weaker yen and a pick-up in Ono Pharmaceutical Co Ltd 2,449.00 -0.08 1,720,800 Provident Financial Plc 2,433.00 0.21 680,172 Daikin Industries Ltd 11,585.00 1.00 736,300 of cheap cash — in place since the fi - strong day, as a fi rm Wall Street and re- confi dence among Japanese business- Persimmon Plc 2,242.00 0.49 1,540,735 Bank Of Yokohama Ltd/The 0.00 0.00 - nancial crisis — was drawing to a close covering oil prices lured investors back es, traders said. Pearson Plc 691.50 -0.50 2,742,939 Toray Industries Inc 957.60 1.84 5,904,700 as the world economy gets back on into the fray. But investors were spooked by a Paddy Power Betfair Plc 8,180.00 0.12 244,017 Astellas Pharma Inc 1,383.00 0.62 4,515,300 Old Mutual Plc 193.40 -1.28 10,301,849 track. London’s FTSE 100 rose 0.9% at huge defeat for Prime Minister Shinzo Bridgestone Corp 4,855.00 0.31 1,388,300 Next Plc 3,856.00 -3.02 1,090,329 “The coordination of language re- 7,377.09 points at close; Frankfurt’s Abe in Tokyo assembly elections, with Sony Corp 4,310.00 0.56 4,160,200 National Grid Plc 951.80 -0.54 7,201,298 fl ects a coordination of the recogni- DAX 30 was up 1.2% at 12,475.31, his ruling party losing more than half Hoya Corp 5,848.00 0.26 993,400 Mondi Plc 2,014.00 1.61 2,245,125 tion that the global economy is point- while Paris’ CAC 40 gained 1.5% at its seats in the wake of several scandals. Sumitomo Mitsui Trust Holdin 4,036.00 0.42 1,240,000 Merlin Entertainment 480.50 0.00 1,972,437 Japan Tobacco Inc 3,950.00 0.08 3,938,700 ing higher and the time for emergency 5,195.72. Shanghai added 0.1% following a Mediclinic International Plc 741.50 1.09 1,337,590 Osaka Gas Co Ltd 457.40 -0.46 4,793,000 policies in individual jurisdictions has Wall Street was also fi rmer, up nearly better-than-expected private survey Marks & Spencer Group Plc 333.30 -2.11 7,025,812 Sumitomo Electric Industries 1,748.00 1.04 2,350,700 ended,” said Greg McKenna, chief 1% approaching midday in New York, showing Chinese manufacturing ex- London Stock Exchange Group 3,646.00 0.58 1,145,315 Daiwa Securities Group Inc 671.50 0.86 5,213,000 Lloyds Banking Group Plc 66.15 -1.49 294,526,935 market strategist at AxiTrader. with subdued volumes on a Monday panded last month. Softbank Group Corp 9,111.00 0.15 3,794,400 Legal & General Group Plc 258.30 -0.12 16,411,687 Mizuho Financial Group Inc 205.30 -0.05 81,699,300 Land Securities Group Plc 1,013.00 0.30 3,329,029 Nomura Holdings Inc 673.10 -0.04 15,010,000 Kingfisher Plc 300.70 -1.86 16,770,908 HONG KONG HONG KONG Daiichi Sankyo Co Ltd 2,610.00 -1.40 6,248,500 Johnson Matthey Plc 2,871.00 -1.88 1,108,358 Subaru Corp 3,849.00 1.66 4,151,200 Itv Plc 181.40 -0.77 18,254,849 Ntt Docomo Inc 2,645.50 -0.25 4,880,800 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intu Properties Plc 269.10 0.11 5,020,874 Sumitomo Realty & Developmen 3,448.00 -0.49 1,398,000 Intl Consolidated Airline-Di 610.00 0.41 14,866,117 Aluminum Corp Of China Ltd-H 4.00 -0.99 26,246,826 Hong Kong & China Gas 14.68 -1.21 12,149,521 Sumitomo Metal Mining Co Ltd 1,508.50 0.53 3,029,000 Intertek Group Plc 4,217.00 0.00 469,151 Bank Of East Asia Ltd 33.55 -1.32 2,266,774 Hong Kong Exchanges & Clear 201.80 -0.69 3,726,795 Orix Corp 1,757.00 0.98 3,783,800 Intercontinental Hotels Grou 4,267.00 0.26 438,230 Bank Of China Ltd-H 3.83 -0.26 242,134,569 Hsbc Holdings Plc 72.65 -0.21 72,479,007 Asahi Group Holdings Ltd 4,300.00 1.70 1,870,200 Inmarsat Plc 769.50 -0.19 2,093,346 Bank Of Communications Co-H 5.51 -1.08 36,279,514 Hutchison Whampoa Ltd 0.00 0.00 - Keyence Corp 49,140.00 -0.41 304,300 Informa Plc 669.00 -0.45 2,280,154 Belle International Holdings 6.16 0.16 24,879,416 Ind & Comm Bk Of China-H 5.27 -0.19 260,990,436 Nidec Corp 11,415.00 -0.83 603,600 Imperial Brands Plc 3,448.50 -1.44 2,759,913 Boc Hong Kong Holdings Ltd 37.35 -3.98 23,530,216 Li & Fung Ltd 2.84 1.07 27,739,160 Isuzu Motors Ltd 1,384.50 -0.11 1,658,200 Hsbc Holdings Plc 711.70 -0.53 29,971,581 Cathay Pacific Airways 12.12 0.50 9,461,453 Mtr Corp 43.95 -0.57 2,960,890 Unicharm Corp 2,813.00 -0.32 1,217,400 Hargreaves Lansdown Plc 1,302.00 0.00 776,696 Ck Hutchison Holdings Ltd 98.00 -0.51 5,630,550 New World Development 9.91 -1.49 20,661,977 Shin-Etsu Chemical Co Ltd 10,140.00 -0.44 766,300 Hammerson Plc 574.50 0.17 4,783,365 China Coal Energy Co-H 3.78 0.53 29,234,030 Petrochina Co Ltd-H 4.78 -1.04 128,185,666 Smc Corp 34,680.00 1.55 202,000 Glencore Plc 287.20 -1.10 37,714,899 China Construction Bank-H 6.05 -0.49 221,226,938 Ping An Insurance Group Co-H 51.45 -1.53 38,782,627 Mitsubishi Corp 2,373.00 0.72 4,359,500 Glaxosmithkline Plc 1,635.50 -0.67 6,821,808 China Life Insurance Co-H 23.85 -0.63 31,054,715 Power Assets Holdings Ltd 68.95 -0.65 4,183,011 Nintendo Co Ltd 36,920.00 -2.02 2,846,400 Gkn Plc 326.00 0.03 9,452,286 China Merchants Port Holding 21.65 -0.46 3,396,755 Sino Land Co 12.80 -0.78 4,590,987 Eisai Co Ltd 6,184.00 -0.34 538,900 Fresnillo Plc 1,486.00 -1.13 1,020,875 China Mobile Ltd 82.85 -0.30 13,707,256 Sun Hung Kai Properties 114.70 0.17 3,941,733 Sumitomo Corp 1,471.50 0.65 2,673,500 Experian Plc 1,575.00 -0.13 2,616,130 China Overseas Land & Invest 22.85 0.00 13,269,743 Swire Pacific Ltd - Cl A 76.25 -0.33 1,334,019 Canon Inc 3,794.00 -0.58 3,674,900 Easyjet Plc 1,359.00 0.89 2,124,254 China Petroleum & Chemical-H 6.09 -0.81 65,432,770 Tencent Holdings Ltd 279.20 -1.69 20,917,886 Japan Airlines Co Ltd 3,490.00 0.46 1,231,600 Dixons Carphone Plc 283.60 -1.83 5,894,352 China Resources Beer Holdin 19.70 -1.99 4,178,668 Wharf Holdings Ltd 64.70 -1.15 2,567,140 Direct Line Insurance Group 355.40 -0.36 3,617,763 China Resources Land Ltd 22.75 0.00 7,185,092 China Resources Power Holdin 15.32 -1.03 9,028,206 Diageo Plc 2,268.50 -0.77 4,736,137 SENSEX Dcc Plc 6,990.00 0.94 224,071 China Shenhua Energy Co-H 17.38 1.76 48,484,406 GCC INDICES Crh Plc 2,734.00 -0.58 1,517,770 China Unicom Hong Kong Ltd 11.60 -0.85 26,240,828 Compass Group Plc 1,620.00 -0.25 4,933,378 Company Name Lt Price % Chg Volume Citic Ltd 11.74 -1.34 10,443,682 Indices Lt Price Change Coca-Cola Hbc Ag-Di 2,258.00 0.31 767,786 Clp Holdings Ltd 82.60 -0.96 2,289,066 Doha Securities Market Zee Entertainment Enterprise 491.35 0.51 2,541,477 9,030.44 +252.71 Centrica Plc 200.20 -1.23 16,676,701 Cnooc Ltd 8.55 0.12 65,221,260 Saudi Tadawul Yes Bank Ltd 1,463.50 1.74 2,196,411 7,425.72 +90.85 Carnival Plc 5,080.00 0.40 566,093 Cosco Shipping Ports Ltd 9.16 2.12 3,201,097 Kuwait Stocks Exchange Wipro Ltd 258.35 -0.37 2,871,082 6,762.82 -6.24 Capita Plc 691.50 -0.86 2,923,416 Esprit Holdings Ltd 4.16 2.72 11,337,956 Bahrain Stock Exchage Vedanta Ltd 249.05 -0.86 15,226,484 1,310.04 +0.00 Burberry Group Plc 1,661.00 0.48 1,527,469 Fih Mobile Ltd 2.41 -0.41 3,541,650 Oman Stock Market Ultratech Cement Ltd 3,959.10 0.14 254,149 5,118.31 -3.16 Bunzl Plc 2,288.00 -0.69 792,462 Hang Lung Properties Ltd 19.50 0.41 4,729,875 Abudhabi Stock Market Tech Mahindra Ltd 382.00 -1.76 2,506,632 4,425.40 -24.28 Bt Group Plc 294.75 0.53 23,479,806 Hang Seng Bank Ltd 163.30 -1.27 1,148,069 Dubai Financial Market Tata Steel Ltd 545.75 2.00 9,385,390 3,392.00 +12.99 British Land Co Plc 605.50 0.92 5,793,135 Henderson Land Development 43.55 -1.02 3,242,457 Tata Power Co Ltd 80.55 -1.23 4,206,575 British American Tobacco Plc 5,234.00 -0.02 3,121,621 Tata Motors Ltd 432.55 -0.70 5,288,636 Bp Plc 442.80 -1.58 34,235,058 Tata Consultancy Svcs Ltd 2,362.35 1.25 931,660 Bhp Billiton Plc 1,176.00 -1.13 10,613,214 Sun Pharmaceutical Indus 555.70 3.50 7,212,046 Berkeley Group Holdings/The 3,227.00 1.06 775,311 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 273.65 0.44 13,046,186 Barratt Developments Plc 563.50 0.00 3,281,402 Reliance Industries Ltd 1,380.00 -0.91 1,891,490 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Barclays Plc 202.75 -1.34 34,008,177 Punjab National Bank 137.30 -0.54 5,929,536 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Bae Systems Plc 633.50 -0.31 7,192,952 Power Grid Corp Of India Ltd 210.55 1.23 4,466,179 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Babcock Intl Group Plc 880.50 -0.51 2,111,841 Oil & Natural Gas Corp Ltd 157.30 -0.35 6,304,574 this data.” Aviva Plc 526.00 -0.85 7,755,198 Ntpc Ltd 158.95 0.19 5,838,707 Astrazeneca Plc 5,135.00 -0.68 2,089,828 Maruti Suzuki India Ltd 7,217.60 -0.09 383,784 Associated British Foods Plc 2,936.00 0.55 796,910 Mahindra & Mahindra Ltd 1,348.60 -0.52 987,710 Ashtead Group Plc 1,589.00 0.51 1,710,662 Lupin Ltd 1,059.85 0.40 1,651,057 CURRENCIES Arm Holdings Plc 0.00 0.00 - Larsen & Toubro Ltd 1,687.60 -0.94 2,338,469 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Antofagasta Plc 799.50 -0.62 2,380,954 DINAR DINAR Kotak Mahindra Bank Ltd 955.75 0.78 1,968,987 Anglo American Plc 1,024.00 -0.49 7,978,043 Itc Ltd 323.65 3.87 25,369,226 Admiral Group Plc 2,003.00 0.30 807,741 Infosys Ltd 935.55 0.58 2,188,002 3I Group Plc 902.50 0.22 2,470,563 Indusind Bank Ltd 1,478.95 -0.04 830,824 #N/A 0.00 0.00 - Idea Cellular Ltd 85.25 1.07 11,033,067 Icici Bank Ltd 290.15 -1.06 13,376,420 TOKYO Housing Development Finance 1,614.95 -1.06 1,905,617 Hindustan Unilever Ltd 1,079.60 -0.78 1,567,302 Hindalco Industries Ltd 190.95 -0.65 9,008,589 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 3,701.35 -0.40 214,898 East Japan Railway Co 10,925.00 1.68 757,300 Hdfc Bank Limited 1,652.05 -0.66 1,132,246 Itochu Corp 1,677.50 0.51 5,046,700 Hcl Technologies Ltd 850.90 0.39 1,147,375 Fujifilm Holdings Corp 4,021.00 -0.47 1,306,500 Grasim Industries Ltd 1,242.10 2.05 2,389,749 Yamato Holdings Co Ltd 2,269.50 -0.39 1,116,600 Gail India Ltd 361.45 -0.25 1,426,221 Chubu Electric Power Co Inc 1,480.00 -0.84 1,528,600 Dr. Reddy’s Laboratories 2,690.10 1.46 356,484 Mitsubishi Estate Co Ltd 2,091.50 -0.10 2,762,700 Coal India Ltd 244.25 -0.37 2,528,974 Mitsubishi Heavy Industries 454.90 -1.07 16,102,000 Cipla Ltd 555.60 2.18 917,325 Toshiba Corp 262.50 -3.42 73,964,000 Cairn India Ltd 0.00 0.00 - Shiseido Co Ltd 3,991.00 -0.08 1,054,400 Bosch Ltd 23,327.25 0.27 18,651 Shionogi & Co Ltd 6,168.00 -1.45 1,166,500 Bharti Airtel Ltd 379.70 -0.72 3,400,967 Tokyo Gas Co Ltd 581.90 -0.41 4,690,000 Bharat Petroleum Corp Ltd 639.40 2.13 4,406,524 Tokyo Electron Ltd 15,120.00 -0.26 1,085,700 Bharat Heavy Electricals 135.30 -0.22 5,441,707 Panasonic Corp 1,534.50 0.69 4,377,500 Bank Of Baroda 161.65 3.95 16,136,735 Fujitsu Ltd 823.90 -0.47 6,446,000 Bajaj Auto Ltd 2,791.20 -0.36 292,746 Central Japan Railway Co 18,285.00 -0.14 366,100 Axis Bank Ltd 517.35 1.03 8,035,772 T&D Holdings Inc 1,706.00 -0.20 2,224,800 Asian Paints Ltd 1,102.95 -0.14 664,303 Toyota Motor Corp 5,950.00 0.97 11,484,100 Ambuja Cements Ltd 246.55 -0.14 3,768,931 Kddi Corp 2,981.00 0.20 4,269,400 Adani Ports And Special Econ 363.05 -0.40 1,510,178 Nitto Denko Corp 9,295.00 0.60 606,800 Acc Ltd 1,568.05 -0.75 286,439 Gulf Times 14 Tuesday, July 4, 2017 BUSINESS

UK nuclear Facebook’s small print may project cost may top be antitrust’s next big target £20bn: EDF Bloomberg Bloomberg Paris Brussels lectricite de France said the acebook’s small print may be the fi nal bill for building two next big thing in European an- Enew reactors in the UK could Ftitrust as watchdogs home in on rise to more than £20bn ($26bn), how the world’s biggest social network refl ecting changes to supplier collects information from users that contracts and plant design, and helps generate vast advertising rev- potential construction delays. enues. The estimated completion cost Germany’s Federal Cartel Offi ce is for the Hinkley Point C reac- examining whether Facebook essen- tors in southwest England is now tially takes advantage of its popularity £19.6bn, up from £18bn last Sep- to bully users into agreeing to terms and tember, the Paris-based compa- conditions they might not understand. ny said yesterday in a statement. The details that users provide help A slippage in schedule could add generate the targeted ads that make the a further €700mn, it said. company so rich. “We’ve been able to fi nalise In the eyes of the Cartel Offi ce, Face- contracts with some suppliers book is “extorting” information from only after the fi nal investment its users, said Frederik Wiemer, a law- decision was made” last year, yer at Heuking Kuehn Lueer Wojtek in Vincent de Rivaz, the head of Hamburg. “Whoever doesn’t agree to EDF’s UK subsidiary, said on a the data use, gets locked out of the so- conference call. “As we entered cial network community,” he said. “The the detailed design phase, sev- fear of social isolation is exploited to eral adjustments that are specifi c get access to the complete surfi ng ac- to the UK and to the regulators’ tivities of users.” request have emerged.” The European Union’s antitrust arm The review – just 10 months has grabbed the limelight with eye- after EDF signed its contract popping penalties for US technology with the British government – fi rms it found fell foul of anti-compet- not only cuts the expected rate itive behaviour. of return but raises concern costs Last year, it ordered Apple to pay could climb further amid doubts €13bn ($14.9bn) in back taxes and last Pedestrians pass the Facebook European headquarters in Dublin. Facebook’s small print may be the next big thing in European antitrust as watchdogs home in on how over EDF’s ability to manage large week it fi ned Google €2.4bn for alleg- the world’s biggest social network collects information from users that helps generate vast advertising revenues. nuclear projects on budget. The edly skewing search results in its favour. Hinkley plan is already contro- But lawyers say the Cartel Offi ce’s Offi ce’s president, said last week he’s they gather and use people’s details. it off ers better results, which makes it year when tougher EU data privacy versial in the UK, where a state probe is testing the boundaries of an- “eager to present fi rst results” of the But in antitrust, it’s still a conten- even harder for competitors. rules take eff ect, allowing them to levy auditor warned it may cost elec- titrust law – with ramifi cations far Facebook investigation this year. tious issue that the European Commis- Facebook is already the target of pri- fi nes of as much as 4% of global annual tricity consumers £30bn over the beyond Germany and Facebook as all Like the EU’s Google investigation, sion’s competition authority in Brus- vacy watchdogs and consumer groups sales. lifetime of the contract. It’s even kinds of powerful technology fi rms he said the Facebook case tackles “cen- sels has largely so far side-stepped, in Germany. “It may be diffi cult to show that been contentious within EDF it- seek to fi nd new ways to cash in on their tral questions ensuring competition in saying its job is to focus on companies’ The Hamburg data regulator has Facebook is really misusing its mar- self, with fi nance chief Thomas trove of customer information. the digital world in the future.” economic power. been attacking the network’s “real ket position” under antitrust law, said Piquemal resigning last year. It’s “more radical” than the EU’s Facebook declined to comment on That could be changing should the name” policy, which banned pseu- Daniel Wiedmann, an antitrust at- “Every nuclear power station Google case “because it asserts that the possible outcome. German regulator embolden other au- donyms, and other aspects of its user torney at P+P Poellath + Partners, in currently being built in Europe privacy concerns can be antitrust The company has insisted it operates thorities such as the EU to act. terms. Frankfurt.“It’s likely users accept the and the US has gone massively concerns” and that consumers have a within applicable law and that it would While the Google case focused on Facebook won an interim ruling in terms not because Facebook is the over time and over budget,” John broader role than buyers of services in cooperate with regulators. how the company abused its power to litigation over users’ names but failed dominant power on that market but Sauven, executive director at an economy, said Alec Burnside, an at- When the German antitrust regula- thwart smaller rivals, last week’s deci- to win a similar request over an order to because they’re refl ecting their prefer- Greenpeace UK, said in a state- torney at Dechert in Brussels. tor disclosed the review in March last sion also revealed how the EU is start- stop processing data of German What- ences.” ment. “Long before Hinkley is The German probe comes as Face- year, it said Facebook collects a large ing to dig deeper into what technology sApp users. Facebook may have less to fear fi nan- even fi nished, off shore wind will book, which now has 2bn members and amount of personal user data from var- companies do with the personal infor- Consumer group VZBV sued Face- cially from a Cartel Offi ce probe as, un- be producing far cheaper and made more than $27bn in revenue last ious sources and creates user profi les, mation they gather from their users. book’s WhatsApp over clauses allow- like Google, it may not be fi ned. safer power.” year, confronts heightened regulatory allowing its advertising customers to The commission pointed to how ing collection and transfer of user data The current terms of the investiga- EDF said there’s a risk of a scrutiny in Europe. better target their ads. data collection creates and cements the between the platforms. tion rule out a fi nancial penalty. 15-month delay for Hinkley Unit It’s being investigated by numerous Users must accept the terms while power of technology giants. Some lawyers say the Facebook case Instead, if it’s found to breach anti- 1 – initially planned for comple- privacy authorities over its plans to it’s hard for them to understand to what Sites such as Google that attract is so daring in its approach to antitrust trust rules Facebook would face an or- tion at the end of 2025 – and a merge data with the WhatsApp mes- extent they agree to surrender their huge numbers of users also draw in that the Cartel Offi ce should have left der to change how it operates. nine-month holdup for Unit 2, senger application, faces a court battle personal information, according to the advertisers who want to grab those the question of whether the company “That’s the right choice,” said Wie- due mid-2026. It now expects a over data transfers across the Atlantic Cartel Offi ce. eyeballs, generating profi ts that can be abuses users’ data to privacy regula- mer. “In these complicated questions rate of return of 8.5% from the and was fi ned in May for misleading Personal data is a hot topic in Europe used to pull in even more users, the EU tors. where you enter new territory, it makes project, half a point less than be- the EU in a merger review of the What- where Internet companies have been authority said. Those watchdogs – once relatively sense to fi rst ban a certain action with- fore, with potential delays push- sApp deal. Andreas Mundt, the Cartel criticised by privacy agencies for how The data Google gathers also means toothless – will be empowered next out imposing fi nes.” ing that down to 8.2%. The com- pany maintained profi t targets. The cost overrun “shouldn’t be a huge problem” for EDF’s fi - nances given the long construc- UK drops Brexit bravado as Hammond tells CEOs May will listen tion time, said Elchin Mam- madov, an analyst at Bloomberg Bloomberg to impose her vision of Brexit and under of ‘cake’ amongst my colleagues.” week with the unoff icial support of senior boasted back in May that European Com- Intelligence in London. London mounting pressure to drop austerity, Since the election, the chancellor government figures, the Financial Times mission President Jean-Claude Juncker De Rivaz said he sees no impact the prime minister has been forced into also has argued that leaving the Brexit reported, citing three unidentified off icials was going to find out what a “bloody diff i- on the contract from tweaking making political concessions at home and talks without a deal, as some including familiar with the project. The aim is to cult woman” she could be. Yet her political costs and timeframes. While the Theresa May’s government has changed increasingly likely with her EU divorce May have threatened, would be a “bad present a secret blueprint for a free-trade standing at home back then was much recent weakening of the pound its tune on Brexit, striking a more sober partners as well. outcome” and that immigration should be deal on financial services when Brexit is stronger. By the end of the campaign, she against the euro is making procure- and realistic tone weeks after her disas- Hammond has emerged as the main managed rather than “shut down.” He’s completed in March 2019. was accused by critics of being “weak and ment more expensive, it’s reduc- trous election. Gone is the bluster that had cheerleader for a business-friendly Brexit. also warned that any fragmentation of Businesses need a way to provide an wobbly” instead of the “strong and stable” ing funding costs, he said, adding prompted European Union allies to chide His reputation for being one of the cabinet financial services after Brexit could result “enduring constant connection that will leader promised in her election slogans. that construction is progressing as the UK for wanting to have its cake and ministers in favour of a softer Brexit had in highest costs for companies both in last far longer than Brexit,” said Steve In the meantime, May’s government will planned and EDF remains “mobi- eat it, too. made him a candidate for the chopping Britain and Europe. Varley, chairman and managing director notify five historic European allies that the lised” to keep it on track. Chancellor of the Exchequer Philip block when it looked as if May was head- There are signs that others are working for the UK and Ireland at the professional UK will pull out of the 1964 London con- Labour unions had wanted Hammond will use a speech organised by ing for a landslide with an army of hard- to get May to rethink her approach to services firm EY. “We need to do some- vention that allowed their fishing vessels the Hinkley project postponed the Confederation of British Industry to Brexit supporters. the breakup. A report in the Guardian, thing of more industrial strength.” to access waters as close as six to twelve to benefit from feedback on tell business leaders their concerns over But May’s poor election performance citing government off icials, said ministers With negotiations formally begun, a nautical miles from British shores. reactors under construction the split will not be dismissed. It’s a concili- has raised his stature, and he’s been were being told to either accept political bone of contention will be Britain’s divorce In terminating rights that predate even in France, Finland and China. atory gesture to an audience that’s been unafraid to spar with Brexit Secretary compromises or to settle for a limited bill, which has been reported to be about the UK’s own entry into the EU, May is At Flamanville in Normandy, overlooked, and at times, even dismissed. David Davis, the chief negotiator, or take free-trade deal similar to one the EU and €100bn ($114bn). The Sunday Telegraph appeasing a long-suff ering industry that where EDF is building a reactor The change in tone has become appar- jabs at Foreign Secretary Boris Johnson, Canada signed – reasoning that it’s not said that May was prepared to stage a favoured Brexit by wanting the country of the same design proposed ent since May lost her majority and had one of the faces of the successful “Leave” possible to have the best of both worlds. dramatic walkout to show voters back in to reclaim control of its waters. She’s also for Hinkley, costs have more to cobble together a working arrange- campaign. In Berlin last week, Hammond In the new climate, a City of London the UK that she’ll play hardball. attempting to demonstrate that even than tripled to €10.5bn ($12bn) ment with a Northern Irish party. Unable joked that he now tried to “discourage talk delegation is headed to Brussels this This is the same prime minister who weakened, she can pack a punch. and construction is six years behind schedule. As Amazon fear widens, one UK retailer is fi ghting back

Bloomberg what inoculated.” For retailers, the fear wireless earphones can’t be bought areas. Suppliers likes Apple and vac- London of Amazon has never been stronger. elsewhere for less. uum-cleaner maker Dyson have de- The online giant’s move into bricks- “Once you eliminate the price dif- ployed their own staff in the outlets to and-mortar retailing with the $13.7bn ferential there’s little incentive for explain their latest gadgets to potential s Amazon.com moves deeper acquisition of Whole Foods Market customers to look at a product in the customers, and help fund store refur- into the grocery and fashion wiped $17bn off the value of Wal-Mart store, then leave and order it from Am- bishments. Aindustries, the companies in its Stores in a single day. The introduction azon,” UBS analyst Andy Hughes said. The retailer’s progress has not been cross hairs could look to the UK for a of Prime Wardrobe the following week, A similar strategy is being pursued recognised by investors of late. The lesson in how to handle an incursion a service which lets customers try on by Dixons Carphone’s US peer Best company has beaten analyst estimates from the Seattle-based giant. items at home before they buy them, Buy Co Inc. Price cuts and cost reduc- each of the last four times it has re- Dixons Carphone, Britain’s larg- spooked investors in companies from tions have helped the US retailer’s on- ported, including last week’s annual est consumer-electronics retailer, has Macy’s to Zalando SE. line sales growth outpace Amazon’s, results, according to Credit Suisse thrived in an area where Amazon’s In the case of Dixons Carphone, try- according to Bloomberg Intelligence. analyst Pradeep Pratti. Despite that, its presence is long established. Sell- ing to keep up with Amazon has been To off set the damage that matching shares have lost a third of their value ing an array of products from mobile an everyday business since the com- Amazon’s prices does to already thin since the UK voted last year to leave the phones to dishwashers, the company pany was formed in a 2014 merger, a profi t margins, Dixons Carphone has European Union. has boosted its market share by fi rst deal that was partly a response to the introduced supplementary services The discretionary nature of the matching Amazon on price across al- growing threat of the online giant. As As Amazon.com moves deeper into the grocery and fashion such as mobile-phone screen repairs company’s products potentially leaves most all categories, then redesigning rivals such as the Comet chain have industries, the companies in its cross hairs could look to the UK for a and paid-for tutorials that teach cus- it vulnerable to a spending slowdown stores to lure shoppers and sell them perished, Dixons Carphone has built lesson in how to handle an incursion from the Seattle-based giant tomers how to use their new laptops as disposable incomes are squeezed. supplementary services. an unblemished record of domestic or digital cameras. These add-ons ac- GfK’s index of UK consumer confi - “In a sense we’re lucky because we sales growth. Dixons Carphone has a dedicated tablets to show how prices stack up counted for more than half its 4.1% op- dence fell to its lowest in a year in June. were one of the fi rst sectors to catch the “Amazon have seen off the runts of team that monitors more than 100,000 against rivals to help convince shop- erating margin last year. James said last week that business Amazon virus,” chief executive offi cer the litter, but it’s not easy for them now competitor prices and with Amazon pers that buying online isn’t cheaper. Dixons Carphone’s refi tted stores remains robust and that the retailer re- Seb James said at a press conference as those that are left are formidable making changes frequently, members Customers are shown that products seek to off er a more engaging shop- mains alive to the prevailing risks, the Wednesday. “Many died and we sur- competitors,” said Bryan Roberts, an run checks several times a day. such as £659 ($856) Sonos wireless ping experience, with Nespresso bars same advice he off ers those facing up vived, and we think we’re now some- analyst at TCC Global. Store employees are equipped with soundbars and £139 Beats by Dr Dre sitting alongside headphone testing to Amazon. Gulf Times Tuesday, July 4, 2017 15 BUSINESS Portugal plans to sell government Italy’s bank funeral bonds in China

Reuters Mazzochi of law firm KWM, who London has been involved in a number of Panda bond deals, said linking to a specific project could help get Portugal is looking to build on Portugal’s planned debt sale off shows EU still using its economic and cultural ties the ground. with China by becoming the first “Applications are easier to eurozone country to borrow in make where there is already an the $9.5tn Chinese bond market, established connection and if an potentially opening the way for issuer would use the proceeds in other European governments. connection with One Belt, One Beijing is tentatively remov- Road initiatives, that would be ing barriers to foreign issuers helpful,” he said. crisis playbook as it seeks to internationalise its A deal could raise eyebrows renminbi or yuan currency and among European authorities sus- Bloomberg open up sources of finance for picious of China’s plans to spread Brussels its planned “One Belt, One Road” its global influence and concerned trade route that stretches as far about transparency and access for as Europe. foreign firms to the scheme. decade has passed since the start Portugal, whose location on Major European countries have of the fi nancial crisis, but when Europe’s Atlantic coast is some even mooted the idea of blocking Ait comes to handling struggling 10,000km (6,250 miles) from Chinese investment on the conti- banks, the European Union still hasn’t Beijing, further away than any of nent. The EU is assessing whether moved on. its eurozone peers, plans to sell a Beijing-funded rail project in Italy’s taxpayer-funded wind-down “Panda” bonds — debt sold by Hungary, which has issued debt of Banca Popolare di Vicenza and Veneto foreign entities to investors in in China’s off shore market and Banca highlighted the patchwork of EU mainland China. is eyeing the onshore market, and national laws and guidelines that “In practical terms, the issue complies with EU law. govern the funnelling of public money to aims to diversify the sources of Finance Minister Mario banks, despite years of work on a com- financing of Portugal, opening Centeno told Reuters in May that mon rule book intended to end the era of a new market for its debt, and selling a bond in the Chinese big bailouts. support the internationalisation currency would allow Portugal In allowing Italy to pour as much as of the (renminbi),” a spokesman to take advantage of growing €17bn ($19.4bn) into liquidating the two for the off ice of Prime Minister demand for its debt, especially as banks, the European Commission relied Antonio Costa told Reuters. a strengthening economy raises on its guidance that state aid for banks is He said strengthening trade hopes for a credit rating upgrade. justifi ed “as long as the crisis situation links between the two countries The planned end in December persists, creating genuinely exceptional would benefit both populations. of the European Central Bank’s circumstances where fi nancial stability Just a handful of foreign bond-buying scheme means at large is at risk.” The 2013 document, entities — including sovereigns diversifying into China — the which replaced guidance from fi ve years Poland and South Korea — have world’s third-biggest debt market, earlier, hasn’t been updated, meaning sold Panda bonds in recent years, behind the United States and that as far as the EU is concerned, the although Hong Kong’s smaller, Japan — might appeal to other crisis rages on and taxpayers can foot the off shore, yuan-denominated “dim eurozone states. bill when banks collapse. sum” market is well established. Contacted by Reuters, the “In the world of bank regulation there Panda bond issuance increased debt off ices of Ireland, Italy and are still two parallel universes: one where A man walks in front of Banca Popolare di Vicenza headquarters in Vicenza, Italy. The wind-down of Banca Popolare and Veneto nine-fold last year to 130bn yuan Belgium said they were open to bank bailouts are frowned upon as an Banca highlighted the patchwork of EU and national laws and guidelines that govern the funnelling of public money to banks, ($19bn), and is expected to grow issuing in yuan, while France, abuse of taxpayers’ money, and another despite years of work on a common rule book intended to end the era of big bailouts. by another 50% in 2017, accord- Spain and the Netherlands said where bank bailouts are considered as a ing to JPMorgan. they had no such plans. politically more expedient and cheap- ity,” German Finance Minister Wolfgang doesn’t fi gure in the laws the SRB used sales process, fully managed by Italian Portugal’s ties with China date A German government source er way of solving banking crises,” said Schaeuble said on June 28. Bank of Italy to make its determination; instead, the authorities, ensuring that the activities back some 500 years to the settle- said such a transaction “had been Christian Stiefmueller, a senior policy Deputy Director General Fabio Panetta commission pointed to its 2013 guidance were sold at the best off er available.” ment of Macau, the trading post- on the table one or two years analyst at the independent watchdog Fi- said EU rules on bank failure should be on state aid. In other words, other potential buyers turned-gambling hub that was ago” but for “cost reasons” Berlin nance Watch in Brussels. “These two sets improved to make the process of state “This is where the fudge was,” said Fe- wanted an even sweeter deal. The “open Europe’s last colony in Asia until it decided against it. of rules are not compatible.” intervention more eff ective, according to derico Santi, an analyst at Eurasia Group. and unconditional competitive tender” was handed back to China in 1999, Bankers at Standard Chartered The EU laid down new bank-failure a report in Il Messaggero. It’s hard to argue that liquidation under test is set out in the Banking Communi- just as Portugal joined the euro. and HSBC told Reuters they rules in 2014, after member states used EU and Italian authorities say they fol- national law that spared senior creditors cation. After a crippling recession that were working with European almost 2tn euros to prop up lenders lowed the rules in approving the plan. A was the best way to meet the SRB’s legal So what is the Banking Communica- pushed the indebted country into sovereigns on deals, but gave no during the crisis. The Bank Recovery number of key decisions were made to objective to protect public funds, he said. tion that underpinned approval of the a bailout in 2011, Chinese cash details. Although China is nervous and Resolution Directive foresees small give Italy control of the banks’ liquida- The “political imperative” was to “pre- Italian plan? As the commission said in helped aid its recovery. about capital outflows, a foreign banks going insolvent like non-fi nancial tion, starting with the SRB’s conclusion vent the backlash that bailing in senior announcing its decision, these are “tem- Portugal is currently the top government issuing there would companies. that resolution under BRRD was “not creditors would have generated.” porary crisis rules” based on a provision destination for Chinese invest- serve as an endorsement of plans Big ones that could cause mayhem warranted in the public interest.” The SRB’s fi rst resolution case, Spain’s in EU basic law that allows state aid to ment in Europe as a share of its to internationalise the currency would be restructured and recapitalised Under EU law, the resolution objectives Banco Popular Espanol, also involved a “remedy a serious disturbance in the economy, according to figures and its standing as a global eco- under a separate procedure called reso- that determine public interest include sale to a larger competitor that left sen- economy of a member state.” from Spain’s ESADE Business & nomic power. lution, in which losses are borne by own- avoiding “signifi cant adverse eff ects on ior creditors unscathed. Elke Koenig, In the Banking Communication, the Law School, and a number of Mushtaq Kapasi, chief ers and creditors, including senior bond- fi nancial stability.” The SRB said neither the head of the SRB, suggested on Mon- European Commission said the treaty’s Chinese firms have taken stakes representative, Asia-Pacific at holders if necessary. of the Italian banks “provides critical day that without a takeover by Banco requirements “continue to be fulfi lled.” in Portuguese companies. the International Capital Market Italy succeeded in keeping Banca functions,” so their failure wouldn’t have Santander, the situation could have be- It made this judgment in August 2013, China Three Gorges owns 21% Association, said Portugal’s sov- Popolare di Vicenza and Veneto Banca ripple eff ects in the markets. come much more complicated. not long after a 10bn-euro bailout of Cy- of Energias de Portugal while pri- ereign would also “give Chinese out of resolution, allowing it to shield Once Italy got its hands on the banks, “We were very lucky because in this prus that involved closing the country’s vate conglomerate Fosun upped investors a level of trust”. In senior creditors, when the Single Reso- however, it insisted that public money case there was a bank that could be sold second-largest bank, and has never re- its stake in bank Millennium bcp October, the yuan was added to lution Board said it wasn’t warranted was needed to grease the liquidation deal and a buyer,” Koenig said at a panel dis- visited it. to 24% in February. the International Monetary Fund’s because of the banks’ small size. That whereby Intesa Sanpaolo took over their cussion in Frankfurt. Without it, there In the document, the commission Last year, Costa told Chinese small basket of reserve curren- meant Italian authorities were free to good assets for one euro and will also re- would have been “a major question foresees the possibility of liquida- state television that Portugal cies, while the ECB added the dispose of the lenders under national in- ceive about €5bn from the state to main- mark” over Banco Popular, she said. tion aid because ordinary insolvency wanted to “actively participate” Chinese currency to its foreign solvency law, which varies widely across tain its capital ratios. Intesa’s takeover of the two Veneto might not be feasible “in the absence in Beijing’s plans to develop a reserves this year. the 28-nation bloc. The European Commission, which ap- banks will make it the leading bank- of mechanisms allowing for the reso- maritime sea route as part of the Spencer Maclean, a banker The confusion has prompted concern proved Italy’s plan, explained that while ing group in Italy’s northeast, one of lution of credit institutions without trade route initiative, dubbed the at Standard Chartered, said a and calls for reform. “One might ask, why the winding up of smaller banks “may the country’s wealthiest regions. Yet threatening financial stability.” Yet the new Silk Road. sovereign bond sale would be is national insolvency law more favour- not aff ect the European fi nancial system, the commission said the public money function of BRRD, which entered into He highlighted port capacity at a “precursor” for private firms able for the owners and creditors than if their market exit may still have eff ects in plowed into the deal didn’t constitute force nearly a year and a half after the Sines in Portugal’s south. from the country to tap Chinese the resolution is done according to the the regions where such banks are most state aid to Intesa because it “was se- Banking Communication, is to provide Hong Kong-based Richard markets. rules of the European resolution author- active.” The notion of regional fallout lected after an open, fair and transparent such mechanisms.

Tesla’s lower-priced Model 3 production on track: Musk GE closes Baker Hughes buyout deal Reuters AFP Houston New York eneral Electric Co yester- Tesla’s first lower-priced Model 3 will day completed its buy- come off the assembly line on Friday, two Gout of Baker Hughes Inc, weeks early, CEO Elon Musk announced merging it with its own oil and yesterday. gas equipment and services op- “Model 3 passed all regulatory requirements erations to create the world’s for production two weeks ahead of schedule. second-largest oilfi eld service Expecting to complete SN1 on Friday,” Musk provider by revenue. wrote on Twitter, referring to the first car as The new company, to be called “serial number 1.” “Baker Hughes, a GE company,” The production of the electric car aimed at will begin trading tomorrow on the the broader market — with a price of $35,000 New York Stock Exchange under — is expected to ramp up quickly, Musk said, the stock ticker “BHGE.” with 100 in August and 1,500 or more in Musk: Aiming at the broader market. With headquarters in London September. and Houston, the combined com- “Handover party for first 30 customer The Model 3 has sparked strong demand pany will have roughly $23bn in Model 3’s on the 28th! Production grows and customers placing orders now are annual revenue and off er oilfi eld exponentially,” Musk tweeted. told they can expect delivery sometime in gear including blowout preventers, General Electric Co yesterday completed its buyout of Baker Hughes, merging it with its own oil “Looks like we can reach 20,000 Model 3 mid-2018. pumps, drilling, chemicals, other and gas equipment and services operations to create the world’s second-largest oilfi eld service cars per month in December.” The rush of pre-orders allowed Tesla products and services for oil pro- provider by revenue Tesla aims to produce 5,000 units of the to recently become the biggest US ducers in 120 countries. Model 3 a week this year, and 10,000 units a car company in terms of market For Baker Hughes, the deal helps All of GE’s oil and gas-related help customers better perform if will likely move the sector towards week in 2018. capitalisation, despite the fact that it grow in size and become an businesses will be folded into the prices stay lower. embracing Big Data in production The mid-range model, unveiled in March General Motors (GM) and Ford produce even-more important player in the new company, which will be 62.5% “The crystal ball for all of us is optimisation,” said Jonathan Gar- 2016, is a crucial piece of Musk’s ambitions millions of cars per year and Tesla has yet industry after antitrust concerns owned by GE. cloudy,” said Lorenzo Simonelli, rett of industry consultancy Wood to transform Tesla into a large-scale vehicle to make a profit. scuttled a tie-up last year with Baker shareholders will own the the company’s chief executive, Mackenzie. The new company will manufacturer. Tesla was valued at nearly $60bn yesterday rival Halliburton Co. The GE deal rest and receive a one-time, $17.50 who will relocate to Houston from have roughly 70,000 employees It will allow the firm, started in 2003, to on Wall Street, compared to $53bn for GM vaults the merged business past dividend. London. and be led by Simonelli and 14 sen- produce about 500,000 vehicles in 2018 and and $45bn for Ford. Halliburton to rival only Schlum- The deal, when announced last “But we know energy require- ior executives. a million by 2020. But any delay in the Model 3 production berger NV for dominance in the autumn, was predicated on a re- ments are still going to increase, Only fi ve of those executives will California-based Tesla currently sells only schedule could quickly change the attitude global oilfi eld service market. covery in the oil price to $60 per globally. The fundamentals are be legacy Baker Hughes employ- two luxury models of its electric vehicles: of financial markets. For GE, the deal will help it fo- barrel by 2019, an increase that there for energy.” ees, with most from GE. the “Model S” sedan and the “Model X” In order to avoid backlogs in its cus more on the oil and gas sector, now seems less likely with a glut Analysts and investors generally The company will have access SUV whose base price starts at around production, Tesla is in the process of especially in North America, while of crude still circling the globe and praised the deal as data analytics to GE’s research and development $80,000. completing the construction of a huge shielding the parent company’s keeping prices below $50. and other high-technology opera- facilities and be able to access GE’s It produced only 84,000 cars in 2016. battery factory in Nevada. earnings from the energy indus- Still, executives at the new com- tions grow in demand among oil Predix software and analytics, Si- try’s boom and bust cycles. pany said the combination should producers. “The GE-Baker deal monelli said. Tuesday, July 4, 2017 GULF TIMES BUSINESS Central bankers want communication, not coordination

Reuters Coming on the heels of the Bank but I’ve already agreed with Yellen,” fi nancial crisis was spiralling out of that is not already in the public do- market volatility diminishes, the sourc- Frankfurt for International Settlement’s annual a source at a eurozone central bank control, banks, including the US Fed- main so we explain our thinking, share es said. But the diff erences between meeting in Switzerland, where top of- said.”How quickly would that leak?” eral Reserve, the ECB and the Swiss our analysis, but can’t discuss our next how central banks operate are also huge. fi cials are well shielded from the me- While central banks make their own National Bank, cut rates in a coordi- step,” the source said. Private meet- The Fed has to reconcile an infl ation here is no behind-the-scenes dia, traders and analysts have looked decisions, these still have far reaching nated move. In 2011, a concerted eff ort ings are often more technical and more and employment mandate while the pact between powerful central suspiciously at the turn of events. consequences for currency, bond and by G7 central banks helped stabilize detailed given that they are made to ECB needs to worry about a discordant Tbankers to tighten policy but However, policymakers on both derivatives prices. the Japanese yen after a devastating an expert audience and they allow for currency union that came to the brink the potent eff ect their actions have on sides of the Atlantic said they often Therefore policy transparency, the earthquake. frank discussion that may not be ap- of collapse in recent years. fi nancial markets means they want a share their economic views in private key benefi t of private meetings, pre- In fact, Draghi’s remarks in Sintra propriate in public, the sources added. And while the Bank of Japan is also deeper understanding of each others’ but to foster understanding and not to pares policymakers for what may be only echo a call he made a year ago for “But I’ve never heard Yellen or Car- seeing some progress, policymakers motivations, offi cials told Reuters. coordinate policy as each central bank coming, limiting market volatility. more dialogue to limit the market vola- ney discuss anything that has not al- are keen to say that they are far from European Central Bank President acts independently. “The more we can talk to each other tility related to the varying pace of the ready been said in one form or another tightening policy. Mario Draghi renewed his long-standing Banks need to fulfi l diff erent man- and also communicate to markets in a recovery across major economies. before,” said a European offi cial, who “I’m 99 % sure that no such pact wish last week for more talks between dates with widely diff erent tools and way that doesn’t increase uncertainty, A source familiar with the Fed’s has attended such closed door meet- has been agreed — but there is in- global central banks, fuelling suspicions any hint that domestic policy is subju- that would be very helpful,” Draghi said thinking also poured cold water on the ings in the past. deed broad common agreement that that policymakers discussed more at re- gated to the interest of foreign central last week in Sintra, Portugal, at another idea of a pact. Yet the shift in the banks’ tone is no the world (ex-UK) is looking a whole cent gatherings than they admit. banks risks a public relations disaster. gathering of central bankers.”So the Given heightened scrutiny from coincidence, the offi cials say. lot better than they thought just six Indeed, the ECB, the Bank of Eng- This makes policy coordination, let need is there, how to do it is not simple.” Congress, any suggestion that the cen- The recovery is picking up speed and months ago,” UniCredit economist land, the Bank of Canada and Norway’s alone cooperation, practically impos- Some market players seized on that tral bank subjugates policy to secret seems to be solidifying, a conclusion Erik Nielsen said. central bank all turned unexpectedly sible, sources said. as a new openness by Draghi to coor- deals with overseas banks would seri- made in various fi nancial centres. “And in such an environment, it is hawkish in just a matter of days with “Can you imagine Draghi com- dinate policy with other central banks. ously damage the institution’s stand- And taking a more upbeat stance in not surprising that central banks are Sweden and the Reserve Bank of Aus- ing to the Governing Council, or just Indeed, such cooperation is not ing, the source added. public becomes easier when others are looking to modify their policies,” he tralia expected to follow suit this week. the board saying: thanks for coming unknown. In late 2008, as the global “We can’t reveal any information also changing their tone, as the risk of a added.

FSB’s Carney warns US factory activity jumps G20 growth at risk from reform fatigue

Reuters impact. Carney said the re- to near three-year high view showed that higher re- London silience in the fi nancial system Reuters has been achieved, “without Washington lobal growth would impeding the supply of credit suff er if regulators give to the economy”. Ginto “reform fatigue” The FSB will consider S factory activity rose sharply in and fail to complete the over- whether the leverage ratio, a June to its highest level in almost haul of the world’s banking broad measure of capital to Uthree years suggesting economic system triggered by the fi nan- assets, needs a rethink after growth in the second quarter gained some cial crisis, Financial Stability banks say it stops them from steam, while construction spending held Board Chairman Mark Carney off ering derivatives clearing to steady in May. said yesterday. customers. The Institute for Supply Management The FSB coordinates fi nan- Besides Washington’s mis- (ISM) said yesterday its index of national cial regulations for the Group givings about some reforms, factory activity rose to a reading of 57.8 of 20 countries (G20) whose regulators on the Basel Com- last month, its best performance since leaders meet in Germany this mittee are also facing diffi - August 2014, from 54.9 in May. week. culties completing Basel III, a A reading above 50 in the ISM index in- The FSB was formed during set of tougher capital rules for dicates an expansion in manufacturing, the crisis that began in 2007 lenders worldwide. which accounts for roughly 12% of the but after an intensive decade France has said Basel III overall US economy. of making rules some policy- rules, still to be implemented, “The ISM index provides further evi- makers now want to prioritise would force European lenders dence that the prospects for the manufac- growth over banking regula- to fi nd large amounts of extra turing sector remain bright,” said Andrew tion. capital but Carney called on Hunter, an economist at Capital Econom- US President Donald Trump G20 leaders to urgently help ics. has said regulation is hold- the Committee fi nish the job. The reading adds to encouraging signs ing back lending and the US “I think a deal is possible,” that the US economy rebounded strongly Treasury has recommended Carney said. in the April-June quarter. delaying two measures that Carney also said that toxic Following the data, the Atlanta Fed- strengthen bank funding and forms of so-called shadow eral Reserve raised its forecast for second- require lenders to hold more banking — a sector that pro- quarter GDP to a 3.0% annualized rate capital for the securities on vides credit outside the bank- from its previous forecast of 2.7%. On their trading books. ing system — have now been Friday, the Commerce Department also Carney, who is also the gov- transformed into “resilient reported that the US economy grew at a The Commerce Department said on Britain misses out as global manufacturing surges ernor of the Bank of England, market-based fi nance”. The 1.4% annual rate in the fi rst quarter, less Monday that construction spending in said in a letter to G20 leaders central banker said once the slowly than previously estimated. May remained unchanged at $1.23tn. British factories were left out of a demand- exports will pick up and off set the con- that there had been “immense rules already agreed for shad- The ISM survey’s new orders sub-index Spending in April was revised to show it driven surge in activity across much of Asia sumer spending slowdown. progress” since the crisis in ow banking had been fully rose to 63.5 in June from 59.5 the prior declining 0.7% after a previously reported and Europe in June, as weakness in sterling Yesterday’s manufacturing report weak- making banks safer. implemented there would no month. 1.4% fall. failed to translate into export growth, ens the case for raising interest rates soon,” “G20 reforms have now need for any more to address A measure of factory employment in- Economists polled by Reuters had fore- surveys showed. said Samuel Tombs at Pantheon Macroeco- addressed the fault lines that existing risks — a conclusion creased to a reading of 57.2 from 53.5 in cast construction spending rising 0.3% in Factories in the eurozone rounded off the nomics. June’s manufacturing PMI for the caused the global fi nancial the sector is likely to welcome. May. May. first half of 2017 by ramping up at the fast- eurozone rose to 57.4, its highest since April crisis,” Carney told reporters. The FSB will also convene According to ISM, comments from Construction spending increased 4.5% est rate for over six years while Asia’s tech- 2011 and up from May’s 57.0. Nascent risks remained that a high-level roundtable to re- those surveyed generally refl ected ex- from a year ago. manufacturing economies were helped Suggesting the bloc’s momentum will needed to be monitored, such view whether there were un- panding conditions, “with new orders, Federal government construction by growing global demand for electronics continue into the second half, new orders as in asset management. warranted barriers that prevent production, employment, backlog and spending jumped 6.4% in May to its high- products. rose at the fastest rate since early 2011, “In particular, giving into remittance providers from ac- exports all growing in June compared to est level since January 2013. But British manufacturing grew more backlogs of work increased at the fastest reform fatigue could erode the cessing banking services. May and with supplier deliveries and in- The May construction spending re- slowly than anyone polled by Reuters ex- pace in over 13 years, raw materials were willingness of G20 members There has been a decline ventories struggling to keep up with the lease included revisions to data back to pected as consumers faced the double-hit of depleted and factories increased headcount to rely on each other’s sys- in correspondent banking as production pace.” Fifteen of the 18 manu- January 2015, the Commerce Depart- accelerating inflation — caused in large part at a near-record pace. tems and institutions and, in global banks withdraw pay- facturing industries reported growth in ment said. by the fall in the pound since last year’s vote The upturn came alongside factories the process, fragment pools of ments services from rivals in June. In May, private construction spending to leave the EU — and slowing wage growth. increasing prices, as they have done for funding and liquidity,” Carney countries deemed at risk from Another survey released on Monday, fell 0.6%, the biggest decline since Octo- Yesterday’s survey suggested the sup- nine months, welcome news for policymak- said. money laundering or terror- the Markit Manufacturing Purchasing ber 2015, after declining 0.2% in April. posed silver lining of a weakened pound ers at the European Central Bank who have He said that would mean ism fi nancing, making it hard- Managers’ Index, gave its lowest reading Investment in private residential con- — more competitive exports — is proving been battling for years to get inflation back “less and more expensive” fi - er for diaspora to send money since last September The dollar rose to a struction also declined 0.6%, the biggest elusive and could make Bank of England of- to their 2% target ceiling. nancing for households and back to their families. session high against a basket of currencies fall since July 2014, after rising 0.5% the ficials think twice about raising interest rates. Private sector surveys of manufacturers businesses, and lower eco- A UK scheme to make man- after the ISM data, while the yield on the prior month. The Markit/CIPS UK Manufacturing in Asia showed factories in China, South nomic growth would be “very agers at banks directly ac- 2-year US Treasury note rose to a more Spending on private nonresidential Purchasing Managers’ Index (PMI) fell to Korea, Japan and Taiwan picked up in June, likely”. Working together countable for decisions could than eight-year high. structures fell 0.7% in May, the fi fth 54.3 from a downwardly-revised 56.3 in May, driven largely by a recovery in exports. through reinforced, volun- also be applied globally in The Dow Jones Industrial Average hit a straight monthly decline. a three-month low and below all forecasts in But continued declines in energy prices, tary international regulatory some form to tackle miscon- record high. Investment in public construction a Reuters poll of economists that pointed to which weighed on manufacturing in Indo- cooperation based on agreed duct, Carney said. Meanwhile, US construction spending projects rose 2.1% in May after dropping a reading of 56.5. nesia and Malaysia, could hurt these two global rules would help to The so-called senior man- unexpectedly remained fl at in May but 2.7% in April. A reading above 50 indicates growth. economies, while in India, sluggish domes- avoid this, said Carney. agers regime was introduced federal government outlays on construc- Outlays on state and local government “The decline in the PMI in June robustly tic demand off set strong foreign demand The FSB has sought to keep in March last year, though tion projects were the highest in more construction projects increased 1.7% in challenges hopes that manufacturing and and led to a slowdown. members on board by review- some lenders have been skirt- than four years. May after falling 2.7% in April. ing new regulations and their ing the new rules. Airbus enacts integrated structure after internal merger

Reuters more collaborative and less bureaucratic commercial arm and raised questions over comes almost 10 years to the day after Paris for speedier decision-making and execu- the future of Bregier, an industrial and mar- leaders of France and Germany agreed in tion,” Enders said in a letter to employees. keting heavyweight whose ties to Enders Toulouse to abolish a system of dual con- The revamp, which saves hundreds of are seen as key to Airbus’s ability to smooth trol over the company, with the CEO role Airbus rolled out a leaner new structure millions of euros in overheads, is designed output and face a resurgent Boeing. shared between two people, one French yesterday, completing a recent merger to complete a decade-long drive to turn “People are very surprised. and one German. between its parent company and its the former European consortium — with a There is no doubt that this is an impor- Enders had to wait another five years dominant planemaking arm, and includ- history of strong French and German gov- tant step,” a person close to the company to become sole CEO of the group and ing a shift in the reporting line for its key ernment influence — into a more normal said. A jet financier expressed “surprise” at another year beyond that to reduce the commercial sales team to group CEO Tom company, and prepare for digital innova- the move, given well-established relations political influence of French and German Enders. tions sweeping through industry. between many airlines and Bregier. government shareholders. That move, which confirmed a Reuters But in an unexpected adjustment Other critics said the sudden move Both now own 11% but their power is report, raised concerns among some insid- reported by Reuters on Friday, Airbus said reflected a heavy-handed new manage- limited under a 2013 overhaul. ers and customers about a possible power its commercial sales team, best known for ment style or risked being perceived as a Analysts say Paris and Berlin have gen- struggle with long-standing airplanes boss contesting leadership of the jet market weakening of French interests. erally had their attention elsewhere during Fabrice Bregier, though Airbus denied any with Boeing, would now report directly to “It is creating a culture in which people the eurozone crisis but that their hands-off tensions. Enders and by-pass Bregier. will go back to ‘Germans versus French’ approach remains to be tested against a Cementing changes first outlined last That decision is seen as sensitive be- and people having to choose which camp recently softening market for jets, with year, the “one Airbus” reorganisation in- cause it revisits a power-sharing deal be- Enders: Seeking speedier decision-making and execution. they are in. It is not good for morale or the thousands of jobs at stake. volves a single headquarters in Toulouse, tween the German Enders and Frenchman culture of the company,” said a person Airbus also faces a raft of politically France, with Bregier confirmed as group- Bregier that initially gave the latter respon- port and services, engineering, manufac- business, and to slightly rebalance our with detailed knowledge of the group. charged decisions, such as how long to wide chief operating off icer and president sibility over all planemaking activities. turing, procurement and quality. internal burden-sharing, I will lead sales An Airbus spokesman called it a routine keep building its slow-selling A380 or its of commercial aircraft. Enders said in his commercial aircraft “However, due to the heavy operational and marketing,” he said in his letter. internal matter of reporting lines, as with response to corruption probes in Britain, “We need to become more integrated, role, Bregier would lead programmes, sup- challenges in our largest revenue-driving The decision sent tremors though the any normal company. The new structure France and Austria.