Tuesday, August 7, 2018Dhul-Qa’da 25, 1439 AH

BUSINESSGULF TIMES

India stocks advance to record high

End of 12-year run as Pepsi’s 1st female CEO

PROFIT HOPE | Page 6 INDRA NOOYI | Page 16

MOUNTING PRESSURE: Page 2

Oil market realities: How buyers are positioning for US sanctions on Iran

Qatar new business growth hits nine-month high: QFCQatar’s non-hydrocarbon private sector started the third

quarter on a solid footing, according to the latest QFC Qatar PMI data.

A survey-record rate of job creation alongside marked new or-der growth contributed to July’s fi ndings. Furthermore, business confi dence improved to the highest level recorded since the sur-vey’s inception in April 2017.

The survey, compiled for the Qatar Financial Centre by IHS Markit, has been conducted since April 2017 and provides an ear-ly indication of operating conditions in Qatar. The headline fi gure derived from the survey is the Purchasing Managers’ Index (PMI).

Readings above 50 signal an improvement in business condi-tions on the previous month, while readings below 50 show a de-terioration.

The headline seasonally adjusted QFC PMI, a composite gauge designed to give a single-fi gure snapshot of operating conditions in the non-oil and gas private sector, rose to 52 in July, up from 51.8 in June. The fi gure was indicative of a moderate improvement in business conditions, and one that was above the survey aver-age of 51.5.

Infl ows of new business increased at a marked rate during July. Firms linked stronger demand to improving domestic eco-nomic conditions and promotional activity. Refl ecting new order growth, output increased in July, albeit at a fractionally slower pace than recorded in June, the survey said.

Strong business confi dence towards future growth prospects in the non-oil and gas private sector stimulated fi rms to hire ad-ditional staff during the latest survey. The level of business op-timism and hiring were both at the survey-record highs in July.

The reduction in selling prices softened from the survey-record decrease recorded in June. Nonetheless, output charges continued to fall at a marked pace overall, refl ecting many fi rms engaging in promotional activities during the latest survey pe-riod.

Businesses in the non-hydrocarbon private sector reported the strongest improvement in vendor performance since the survey began during July, according to the survey.

Refl ecting higher infl ows of new business in the latest survey, backlogs of work built-up at a solid pace. The fi nding extended the current phase of rising backlogs of work to three months, with the most recent increase being the sharpest since last October.

Stocks of purchases held at Qatari non-oil private sector fi rms dropped for the fi rst time since April, partly refl ecting higher business activity.

“Business activity growth across the non-hydrocarbon pri-vate sector accelerated during July, refl ecting stronger domestic economic conditions. The latest Qatar Financial Centre PMI also suggested the fastest increase in new hires since the survey began in April last year, with many local businesses linking job crea-tion to improved optimism towards future growth prospects and marked infl ows of new orders,” said Sheikha Alanoud bint Hamad al-Thani, managing director, business development, QFC Au-thority.

Chamber, Oman delegation look to deepen business tiesQNADoha

The Qatar Chamber held a meeting yesterday with a delegation from So-har Industrial Port Company (SIPC),

during which both sides discussed ways and mechanisms to enhance joint co-operation in various fi elds, besides identifying investment opportunities available at the port.

Qatar Chamber fi rst vice-chairman Mo-hamed bin Ahmed bin Twar said Qatari businesses and investors are interested in identifying investment opportunities in the Sultanate, stressing that the mutual visits and bilateral meetings in recent times resulted in the signing of a large number of agreements and partnership deals between the two sides, which contributed to deepening trade ties be-tween the private sector in Qatar and Oman.

He added that Oman’s Sohar state has great potential and investment incentives that have attracted international companies and facto-ries.

He also called on Qatari business owners to explore investment opportunities in Sohar Port and the Industrial Zone.

The Chamber is keen to enhance co-op-eration with the Omani side, and to support the Omani businessmen wishing to enter the Qatari market, he stressed. Sohar Port and Freezone’s executive manager of corporate af-

fairs, Suwaid al-Shamaisi said Sohar Port at-taches great importance to food security.

A port area has been allocated for the stor-age and handling of food commodities along with shipping and distribution operations.

Doha Bank wins ‘Most Outstanding Business Bank 2018’ in Qatar awardDoha Bank has received the 2018 Corporate Excellent Award from CV Magazine for ‘Most Outstanding Business Bank’ in Qatar. The bank said the award is a testament to its “solid and successful” business strategy and demonstrates its commitment to delivering service excellence to its customers and value to its stakeholders.Doha Bank CEO Dr R Seetharaman said, “We are honoured to be named ‘Most Outstanding Bank’ in Qatar for 2018 by a prominent publication such as CV Magazine. Such recognition motivates us to further excel in our off erings and to continue presenting our customers with a diff erentiated experience in Qatar and across the region.”He added, “This year has been rewarding for us as our eff orts continue to be recognised by top institutions. We strongly believe that our deep understanding of our customers’ needs and our ability to cater to them, while continuously presenting new and innovative products and services, has positioned us in the forefront. “On behalf of Doha Bank, I would like to thank the CV judging panel for acknowledging our eff orts and I would also like to thank all Doha Bank people for their unwavering hard work and diligence.”Doha Bank won a series of awards this year, namely ‘Best Local Bank in Qatar’ by EMEA Finance Middle East Banking Awards; ‘Best Arab Customers Services’ award at the recent

Arab Banks Awards and Commendations of Excellence, and the ‘Qatar Domestic Trade Finance Bank of the Year’ title in the ‘Wholesale Banking’ category for the fourth consecutive year by the Asian Banking and Finance awards. Since its inception, Doha Bank has established overseas branches in Kuwait, Dubai, Abu Dhabi, Mumbai, Chennai and Kochi (India), as well as representative off ices in Japan, China, Singapore, Hong Kong, South Africa, South Korea, Australia, Turkey, the UK, Canada, Germany, Bangladesh, Sri Lanka, and Nepal.

MPHC posts QR666mn net profit for H1Mesaieed Petrochemical Holding Company (MPHC), a subsidiary of Qatar Petroleum and one of the region’s premier diversified petrochemical conglomerates with interests in the production of olefins, polyolefins, alpha olefins, and chlor-alkali products, has reported a QR666mn net profit in the first half of 2018.For the same period, MPHC’s earnings per share stood at QR0.53, outperforming the net profit of QR469mn and earnings per share of QR0.37 of the previous year by QR197mn, or 42%.The increase in profit was driven by improved selling prices by 13% and increased sales volumes by 6%, as the previous year witnessed planned turnaround in one of the group companies’ plants. The group’s profit for the period was also aided by the recognition of a tax refund of approximately QR64mn for the period.The group continued to benefit from the supply of competitively-priced ethane feedstock and fuel gas under long-term supply agreements. This contracting arrangement is an important value driver for the group’s profitability in a challenging market condition, MPHC said.The closing cash position after the first six months of operations was a robust QR1.2bn as of June 30, 2018. Total assets as of June 30, 2018 was QR14.6bn compared to QR14.8bn in December 31, 2017.Compared to the previous quarter, the net profit was down by QR47mn, or 13%, due to the planned annual maintenance shutdown in one of the group companies’ plants, MPHC added.

Qatar’s non-hydrocarbon private sector started the third quarter on a solid footing, according to the latest QFC Qatar PMI data

Mutual visits and bilateral meetings have resulted in the signing of a large number of deals between the two sides, which contributed to deepening the trade ties between the private sector in Qatar and Oman

‘Oil up aft er Opec sources say Saudi crude output fell’

Oil futures rose yesterday after Opec sources said Sau-

di crude production unexpectedly fell in July, raising

concerns about global oil supplies as the US prepares

to reinstate sanctions against major exporter Iran.

Brent crude futures rose 83 cents to $74.04 a barrel,

a 1.1% gain, by 1.05pm EDT (1705 GMT). US West Texas

Intermediate (WTI) crude futures rose $1.08 to $69.57

a barrel, a 1.6% gain. Saudi Arabia pumped around

10.29mn bpd of crude in July, two Opec sources said on

Friday, down about 200,000 bpd from a month earlier.

That came despite a pledge by the Saudis and top

producer Russia in June to raise output from July, with

Saudi Arabia promising a “measurable” supply boost.

“The Saudis are reining in production gains in an at-

tempt to maintain Brent pricing” at about $70 to $75 a

barrel, Jim Ritterbusch, president of Ritterbusch and

Associates, said in a note.

BUSINESS

Gulf Times Tuesday, August 7, 20182

Iran oil market realities: How buyers are positioning for the US sanctionsWith three months to go, China signals it will resist US measures while Europe appears to be cutting back

BloombergLondon

In three months’ time, US sanctions on Iran are due to enter into force that could drive the Gulf nation’s exports down toward zero and upend the global oil market. There are already signs that it will be harder for the country to export, as some international insurers stop covering shipments.The US measures require buyers to cut purchases or run the risk of their banks being excluded from the American financial system. If they do scale back, then there’s a risk of spiralling crude prices.A summary of the main Iranian oil importers’ reactions and positions is set out below. Observed flows and exports are from tanker tracking data compiled by Bloomberg. To calculate what that equates to as a share of each country’s overall purchases, import data from the Riyadh-based Joint Organisations Data Initiative were used.

China

Observed flows (Jan-June): 675,000 b/dShare of observed exports (Jan -June): 26%Share of imports (Dec-May): 7%What government has said: While Beijing has agreed to not ramp up purchases from Iran, China has rejected a US request to cut them, according to two off icials familiar with negotiations. China will continue to co-operate with Iran without violating international obligations, foreign ministry spokeswoman Hua Chunying said back in June. In July, China continued to pay for Iranian crude imports in yuan.What companies have said: Nothing.

India

Observed flows (Jan-June): 597,000 b/dShare of observed exports (Jan-June): 23%Share of imports (Nov-Apr.): 11%What government has said: Foreign Minister Sushma Swaraj at first stated that India only complied with UN-mandated sanctions. Then, in June, the oil ministry held a meeting with refiners and asked them to prepare for a scenario of ‘drastic or zero’ imports of Iranian oil from November, Reuters reported. The country is currently trying to find alternative payment methods to enable it to continue buying from the Islamic Republic.What companies have said: Indian Oil Corp chairman Sanjiv Singh said in July that Saudi Arabia alone can cover most of the world’s supply shortfall if Iran’s oil exports dry up. “We have Plan B, Plan C, Plan D. We are fully prepared,” he said. IOC and Bharat Petroleum Corp kept buying Iranian crude in July and have started contracting oil from the Gulf country for August deliveries. Hindustan Petroleum Corp, the third biggest state refiner, is unlikely to buy any more Iranian oil until India gets a waiver from the US, since its new insurance cover for its refineries would be invalidated by processing Iranian oil, according to a person familiar with the matter.Mangalore Refinery and Petrochemicals Ltd said in its annual report that it’s looking at alternative sources like Australia, West Africa and South America to supplement any reduction from Iran, which supplied a quarter of its oil needs. Shipping data compiled by Bloomberg show Reliance Industries Ltd, India’s largest petrochemical firm, cut Iranian oil imports in

June, although month-on-month flows are prone to big swings.

South Korea

Observed flows (Jan-June): 286,000 b/dShare of observed exports (Jan-June): 11%Share of imports (Dec-May): 10%What government has said: South Korea is waiting for an off icial response from the US on whether its refiners can continue importing Iranian crude and condensate during the 180-day wind-down period, an off icial from the nation’s energy ministry said in early July. The country already put some imports on hold in June.What companies have said: Refiners are substituting condensate from Iran with a processed fuel known as naphtha from elsewhere. SK Innovation Co, the Asian country’s top processor, Hanwha Total Petrochemical Co and Hyundai Oilbank Co all rushed to procure supply for July and August from other suppliers. Refiners didn’t buy supplies for July and will only decide whether to buy Iran’s South Pars condensate for the rest of the third quarter after negotiations between their government and the US administration.

Japan

Observed flows (Jan-June): 125,000Share of observed exports (Jan-June): 5%Share of imports (Dec-May): 4%What government has said: Since the US

pulled out of the Iran nuclear deal, Japan has sought a waiver from the US measures. Japan’s Finance Minister Taro Aso in June asked the US to give more clarity and reassurance to Japanese firms. Talks will continue, Japan’s foreign ministry said in early August.What companies have said: Japan’s refining industry wants the government to “tenaciously hold talks” with the US to get a waiver on America’s renewed sanctions on Iran, Takashi Tsukioka, chairman of refiner Idemitsu and of the Petroleum Association of Japan, said last month. The executive sees it as “unreasonable” for Japan to be impacted in the same way as countries that have boosted Iranian oil imports. Japanese shipping companies and major banks, such as MUFG Bank and Mizuho Bank, have told oil distributors they may soon halt transactions with Iran. Refiners were told that the banks won’t handle transactions for Iran-related deals that were signed on or after May 8, and that those signed before that period will be dealt with “on case-by-case basis”. Idemitsu declined to comment on what the company will do in response. Fuji Oil is considering halting crude imports from Iran earlier than it expected. The firm hasn’t determined a deadline yet and is still processing oil supplied under long-term contract. Cosmo Energy said it will likely halt Iranian crude imports after taking July-loading cargoes — if Japan doesn’t receive waiver, according to people with knowledge of the matter.

UAE

Observed flows (Jan-June): 127,000 b/dShare of observed exports (Jan-June): 5%What government has said: Not much. The UAE has limited diplomatic relations with Iran, and withdrew its ambassador in Tehran in 2016. Abu Dhabi’s crown prince supports efforts to curb Iran’s influence in the region. Dubai, the UAE’s trade hub, does business with Iranian merchants and purchases condensate for its refineries. There were signs of flows from other countries rising in July at Iran’s expense.What companies have said: Dubai-based Emirates National Oil Co is trying alternatives to cargoes from the Islamic Republic, according to traders with knowledge of the matter.

European Union

Observed flows (Jan-June): 516,000 b/dShare of observed exports (Jan-June): 20%Share of imports (Dec-May): 5%What public authorities have said: The bloc is determined to preserve the Iran nuclear deal and considers that the consequences of abandoning it could be “catastrophic,” according to the EU foreign-policy chief Federica Mogherini. In June, she stressed that the most important challenge was to find solutions on banking and finance to support “legitimate trade and investment.” In July, the US rejected French, British and German demands

to grant waivers or exemptions to companies seeking to do business in Iran.What companies have said: The lack of clarity on the scale of the reductions sought by the Trump administration has left several customers continuing to buy Iranian crude, although some showed less interest in resuming business with Iran. Austria’s OMV AG has suspended investment projects in Iran, but still has made no decision on imports, CEO Rainer Seele said in an interview with Tass news agency. Swiss lender Banque de Commerce et de Placements SA told customers that it would stop financing Iranian oil cargoes by June 30, Reuters reported. Vitol Group’s chairman, Ian Taylor, said in May it will be near impossible to avoid the sanctions.

Italy

Observed flows (Jan-June): 154,000 b/dShare of observed exports (Jan-June): 6%Share of imports (Dec-May): 13%Iran is an important supplier to Saras SpA, but the refiner isn’t concerned about sourcing crude due to flexibility of operations, according to CEO Dario Scaff ardi. The company is waiting for guidance from Italian and European authorities. ENI SpA said also in May that the company has no material exposure to Iran and will not be aff ected by the sanctions. CEO Claudi Descalzi did warn about the disruption ahead for oil markets in an interview with broadcaster CNBC.

Spain

Observed flows (Jan-June): 119,000 b/dShare of observed exports (Jan-June): 5%Share of imports (Dec-May): 9%Compania Espanola de Petroleos SAU, or Cepsa, was to stop imports from early July, Reuters reported citing sources familiar with the matter. Also, in June, Repsol SA agreed to take the first spot cargo of Iran’s West Karoun oil region, 500,000 barrels of Pars crude.

France

Observed flows (Jan-June): 94,000 b/dShare of observed exports (Jan-June): 4%Share of imports (Dec-May): 10%Total SA will hand over its share in the South Pars phase gas field development in the Gulf, Iran’s Oil Minister Bijan Namdar Zanganeh announced in June. “Within the US legal framework, we can’t work in Iran,” Total CEO Patrick Pouyanne said in July. “It’s impossible for a company like ours, and for most or even all global companies, even maybe the Chinese.”

Greece

Observed flows (Jan-June): 66,000 b/dShare of observed exports (Jan-June): 3%Share of imports (Dec-May): 16%The country cut its Iranian imports to zero in June, but they rose again in July. Hellenic Petroleum SA said in May it was assessing its position and commercial arrangements following the US decision. The refiner said it will “comply with the applicable international regulatory framework,” and that it didn’t expect any significant eff ect on its operations.

Turkey

Observed flows (Jan-June): 176,000 b/dShare of observed exports (Jan-June): 7%Share of imports (Dec-May): 49%What government has said: Turkish Foreign Minister Mevlut Cavusoglu said in late June that Turkey will not take part in US sanctions against Iran, according to local media reports. In a similar line to India’s foreign minister, Turkey’s former Minister of Economy Nihat Zeybekci had already announced in June that the US decision on Iran didn’t concern Turkey, and that it was not obliged to implement it unless there are UN sanctions.

Iran’s economyBy Lin Noueihed

For a decade, the US and other major powers squeezed Iran’s economy to force it to rein in its nuclear programme. Most sanctions on Iran were lifted in early 2016 under a multilateral agreement to limit and monitor the country’s nuclear activities. That created an opportunity for Iran to bounce back, and by many measures it has. Yet doubts about America’s commitment to the accord limited gains. Then, under President Donald Trump, the US in mid-2018 withdrew from the agreement and said it would re-impose, in stages, sanctions it had suspended. By the end of the year, the noose will tighten on Iran’s oil exports, the backbone of its economy. At stake is more than Iran’s gross domestic product. The credibility of President Hassan Rouhani, a relative moderate, rests in large part on his ability to deliver on the promise that the nuclear deal will bring prosperity. At the same time, Iran’s fortunes aff ect the role the country plays in the world’s most volatile region.

The Situation

With old US sanctions resuming, the rial went into free fall on Tehran’s

black market. Panicked businesses and individuals snapped up increasingly scarce dollars, forcing the central bank to impose capital controls. The depreciation stoked inflation, adding to public anxiety. Even before the US turnabout, the nuclear deal had failed to deliver the returns Iranians had hoped for. In the last days of 2017, economic grievances sparked a week of anti-government demonstrations in which at least 21 people died. Sporadic protests have continued to erupt in some provincial cities. As anger has mounted, Rouhani has faced domestic pressure. Even moderates are complaining while hardliners, who always warned the US could not be trusted, are emboldened. Since the nuclear deal, the economy has risen out of recession, but almost all the economic growth has come from oil exports, which surged as sanctions were eased. For other businesses, lack of access to finance has remained a major impediment. US sanctions on financial transactions with Iran have never been lifted, making it diff icult for international companies to do business there. While some overseas oil and construction companies, as well as airplane and car manufacturers like Airbus SE and PSA Group, have inked deals, foreign investment has fallen

short of Rouhani’s rosy projections. The re-imposed US sanctions will worsen the investment climate by punishing multinationals doing business in Iran. All along, most American companies have been kept on the sidelines by a sweeping 1995 US ban on trade and investment. Now, US licences given to Airbus and Boeing to sell planes to Iran are being revoked.

The Background

The Pahlavi monarchy that ruled Iran from 1925 transformed a small agrarian economy into a booming one, developing both manufacturing and oil production. Industrialisation and an influx of rural Iranians into the cities led to cultural tensions that were among the factors that provoked the 1979 revolution. Subsequent leaders have never quite settled on the appropriate shape of the economy in an Islamic state. At first, much of the economy was nationalised. Starting in the late 1990s, the country’s leaders tried privatisation. Many assets, however, ended up either with the Revolutionary Guards, or with its aff iliated corporations, or religious charities. Elected in 2005, President Mahmoud Ahmadinejad took a populist turn, expanding credit, spending freely and handing out $15 a month in cash to every citizen.

These policies fuelled inflation just as sanctions began to bite. Rouhani was first elected in 2013 promising to end Iran’s economic isolation.

The Argument

Britain, Germany and France — which along with China, Russia and the European Union are the remaining

signatories with Iran to the nuclear deal — argue that supporting Iran’s economy, which is about the size of Austria’s, is the best way to boost political moderates represented by Rouhani. They say that better integrating Iran into the global economy creates incentives for the country to abide by the nuclear agreement and other international

norms. Sceptics argue that such thinking underestimates the commitment of Iran’s leaders to expanding their power in the region. They say an Iran with more money is just a more dangerous Iran, better able to support allies such as Syrian dictator Bashar al-Assad as well as groups like Lebanon’s Hezbollah, Yemen’s Houthi rebels and Iraq’s Shia militias.

Bloomberg QuickTake

A gas flare on an oil production platform in the Soroush oil fields is seen alongside an Iranian flag (file). Since the nuclear deal, the economy has risen out of recession, but almost all the economic growth has come from oil exports, which surged as sanctions were eased.

BUSINESS3Gulf Times

Tuesday, August 7, 2018

Iran ends eff ort to support rial as sanctions returnBloombergDubai/Tehran

Iran’s central bank, acting on the eve of US sanctions, scrapped most currency con-trols introduced this year in a bid to halt

a plunge in the rial that has stirred protests against the government of President Hassan Rouhani.

Under the measures, the central bank will allow the market to determine the rate of foreign-exchange transactions except the imports of essential goods and drugs, gov-ernor Abdolnaser Hemmati told state tel-evision on Sunday night. Licensed currency houses whose trading had been halted will be allowed to resume operations from today, he said.

The rial’s slump to record lows has been at the heart of an escalating crisis facing Iran’s economy as the US, encouraged by Iranian foes in the Middle East, seeks to isolate the Islamic Republic after pulling out of the 2015 nuclear deal. One person was killed and 20 other detained in the city of Karaj, west of Tehran, in a protest on Friday.

“With activity being banned on the free market, people couldn’t access their for-eign-currency needs and alternative prices had taken shape which led to corruption,” Hemmati said, according to the state-run Iranian Students News Agency. “Given that we have suitable currency reserves we decid-ed to allow the market to carry out its activ-ity and let supply and demand form.”

A central bank offi cial said exchange houses will determine the rial’s rate without any guidance from the regulator. Custom-ers, however, will have to show a compelling reason to buy dollars, such as travel, medical or education expenses, and won’t be able to get large amounts, according to the offi cial, who asked not to be named because he’s not authorised to speak to the media.

Earlier this year, the central bank said it would unify the exchange rate at 42,000 rials to the dollar in an attempt to root out unreg-ulated trading. It banned exchange houses from selling foreign currencies, and authori-ties arrested dozens for allegedly manipulat-

ing the rules for personal gain. Among those detained is a central bank deputy governor in charge of foreign-currency aff airs.

But the policies backfi red, with the rial weakening to more than 100,000 to the dol-lar on the black market this month.

The crisis has heaped more pressure on Rouhani, a moderate cleric who was fi rst elected president in 2013 on promises to end Iran’s international isolation. He champi-oned the 2015 agreement with global pow-ers to curb Iran’s nuclear programme in ex-change for sanctions relief.

US President Donald Trump condemned

the pact as a “disaster” that would ulti-mately lead to a nuclear-armed Iran. Euro-pean powers, who are attempting to limit the damage imposed by sanctions, and interna-tional nuclear monitors say Iran is sticking to the accord.

Starting today, the US will ban purchases of dollar banknotes by Iran, prevent the gov-ernment from trading gold and other pre-cious metals, and block the nation from sell-ing or acquiring various industrial metals. The measures also target the auto industry, and will ban exports of Iranian carpets and pistachios to the US.

Hemmati was appointed late last month with Rouhani stressing that the challenges facing the country called for “fresh blood.” The president has instructed Hemmati to work on preserving Iran’s foreign-curren-cy reserves while looking for “new tactics and approaches” to counter US attempts to disrupt Iran’s banking relations with the world.

The list of essential goods that will be imported under the central bank’s fi xed ex-change rate will be announced by the Minis-try of Industry, Trade and Mines.

Turkish lira hits record low after US says reviewing duty-free access

ReutersIstanbul

The Turkish lira hit record lows yesterday after the Trump administration said it was reviewing Turkey’s duty-free access to the US market, a move that could aff ect $1.7bn of Turkish exports.The US Trade Representative’s (USTR) review, announced on Friday, came after Ankara imposed retaliatory tariff s on USgoods in response to American tariff s on steel and aluminium.The currency has lost 27% of its value this year.Yesterday, it fell more than 2% to a record low of 5.2 against the dollar.The sell-off prompted the central bank to step in and loosen the upper limit of banks’ reserve requirements.However, that did little to prop up the lira, which also hit a record low versus the euro.“The best bet now is to expect further weakness in the lira — Turkey really doesn’t need this,” said Per Hammarlund, chief emerging markets strategist at SEB. “They should be doing more to support the lira, but in my view this will continue for a while longer and the lira will take another beating here.”The US Trade Representative’s off ice said the review could aff ect $1.66bn worth of Turkish imports into the US that benefited from the Generalised System of Preferences programme last year.They included motor vehicles and parts, jewellery, precious metals and stone products. It was unclear whether any large, listed Turkish firms would be hit. Auto parts suppliers tend to be smaller, unlisted companies.Istanbul’s main index fell 1.4%.Data from the US International Trade Commission showed that the biggest beneficiary of the duty-free programme were auto and auto parts makers, with exports of nearly $250mn last year. That was followed by precious stones and metals, at nearly $210mn.A USTR spokeswoman said the review was unrelated to the case of Andrew Brunson, an American evangelical pastor who has lived in Turkey for more than two decades and is charged with supporting the group Ankara blames for an attempted coup in 2016.The central bank said its move on the reserve requirements would free up $2.2bn in liquidity for banks. The central bank could be expected to take similar moves ahead of its next policy meeting on September 13, one forex banker said.

People walk on a shopping street in the Iranian capital Tehran yesterday. The rial’s slump to record lows has been at the heart of an escalating crisis facing Iran’s economy.

Indonesia posts best GDP growth pace since 2013ReutersJakarta

Indonesia’s economy beat forecasts and grew the fastest in 4-1/2 years in April-June, helped by robust con-

sumption during the holy month of Ra-madan, but headwinds cloud the out-look for lifting growth well above 5%.

Southeast Asia’s largest economy grew 5.27% from a year earlier in the second quarter, statistics bureau data showed yesterday.

This was Indonesia’s fastest pace since October-December 2013, and easily topped the first quarter’s 5.06% and a Reuters poll projection of 5.16%.

The latest number is the best since Joko Widodo, who pledged to get growth up to 7%, became president in 2014 and may give him a little boost as he seeks re-election in 2019.

But there are multiple factors mak-ing it unlikely Indonesia can keep seeing faster growth rates, starting with higher US interest rates – which have hit the rupiah currency – and possible collateral damage from the US-China trade war, which can hit Jakarta’s commodity exports.

Also, pivotal domestic consump-tion, which accounts for more than half of gross domestic product, will not be as strong as the second quar-ter, when it grew 5.14% – the highest in four years – lifted by Ramadan and celebrations after it.

A survey released by the statistics bureau on Monday showed consum-ers were turning pessimistic in the third quarter due to weaker income projection. Higher interest rates may dampen demand.

Since mid-May, Bank Indonesia (BI) raised its key rate by 100 basis points to support the rupiah, and it might not be done hiking.

ANZ said it believes BI will increase the rate another 25 basis points to 5.50% next week.

Also, Indonesia’s efforts to get more tourists to help contain its cur-

rent account deficit will be hurt by powerful earthquakes jolting Lom-bok and Bali in the past nine days.

Some tourists were exiting the is-lands and an association of Indone-sian travel agents said tour cancella-tions were rising yesterday.

While April-June’s economic growth was impressive, the govern-ment “will still need to embark on a Mission: Impossible-like stunt”

to reach its target of full-year 5.4% growth, said Satria Sambijantoro, economist at Bahana Sekuritas.

Meanwhile, the government is re-viewing capital goods imports and infrastructure projects to narrow the current account deficit, which could affect investment growth.

Investment is Indonesia’s second growth engine and it already slowed significantly to 5.87% in the second

quarter, after posting over 7% growth rate in the previous three quarters.

The statistics bureau attributed this to “nearly no new construction” of office buildings and shopping malls.

Capital Economics said it doubts Indonesia can maintain the second quarter’s expansion pace and pro-jected growth “to average just 5% over the next couple of years”.

But some economists see the sec-ond quarter as a proof of Indonesia’s resilience amid a trade war.

The April-June trends signalled “that economies with a stronger domestic consumption story will provide a counter weight to a weak trade balance, particularly if global demand moderates on trade war con-cerns”, said Radhika Rao, DBS econo-mist in Singapore.

BUSINESS

Gulf Times Tuesday, August 7, 20184

Japan Tobacco to buy Bangladesh fi rm for $1.5bnBloombergTokyo

Japan Tobacco Inc agreed to buy a Bangladeshi cigarette maker for 124.3bn taka ($1.5bn), taking its ac-

quisition strategy to one of the fastest-growing economies in Asia.

The Japanese company is acquiring the tobacco business of Akij Group, the second-largest cigarette maker in Bangladesh with about 20% share of the market, Japan Tobacco said in a

statement yesterday. “With this invest-ment, we continue to accelerate our expansion in emerging markets that matter,” Mutsuo Iwai, Japan Tobacco’s executive vice president, said in the statement.

“Akij’s substantial market share places us straight at the No 2 position in Bangladesh.”

The maker of Mevius and Winston cigarettes has been buying up business-es in markets where smoking is more prevalent, which has helped cushion sales in the face of tighter smoking reg-

ulations in most areas around the globe and dwindling demand at home.

The Tokyo-based company has spent more than $3bn since last August pick-ing up companies in Russia, Indonesia and the Philippines.

The strategy is in contrast to rival Philip Morris International Inc, which hasn’t made an acquisition of tradi-tional tobacco assets in at least four years as it focuses on next-generation devices.

While Japan Tobacco is also investing in new products, announcing last week

it will spend more in smokeless devices, it’s also betting emerging markets will take longer to implement tobacco re-strictions, providing opportunities for growth.

“It’s not a cheap deal on the face of it,” said Bloomberg Intelligence analyst Duncan Fox.

He said Japan Tobacco had the bal-ance sheet to do the deal.

What matters more is picking an emerging market with the right growth and favourable regulatory climate, he said.

Japan Tobacco entered Bangladesh’s market in 2015 and held a 0.1% market share as of 2017, according to the com-pany’s estimates.

Akij, with brands such as Navy and Sheikh, is seeing industrywide volume growth of about 2% a year in Bangla-desh, according to Japan Tobacco.

“Bangladesh is one of the fastest-growing economies in the world with a pro-business mindset, which is why we are keen to expand our presence in the country,” said Eddy Pirard, chief executive offi cer of Japan Tobacco In-

ternational. “The tobacco business of Akij is profi table, has state-of-the-art manufacturing facilities and a strong distribution network and workforce.”

The deal is expected to close in the third quarter, and Japan Tobacco said it doesn’t expect it to impact its earnings for current fi scal year.

The transaction will be funded with existing cash and loan.

Japan Tobacco had ¥237.4bn ($2.1bn) in cash, cash equivalents and short-term investments as of June 30, accord-ing to data compiled by Bloomberg.

A worker tracks shipping containers in Tanjung Priok port in North Jakarta. Indonesia’s economy beat forecasts and grew the fastest in 4-1/2 years in April-June, helped by robust consumption during the holy month of Ramadan, but headwinds cloud the outlook for lifting growth well above 5%.

Vietnam court jails46 bankers, executives for loan scheme

AFPHanoi

A court in Vietnam convicted 46

former bankers and business-

men of corruption yesterday

over a multi-million-dollar

lending scam spearheaded by

the once-powerful chairman of

Vietnam’s Construction Bank.

It is the latest in a series of

major banking trials aimed at

cleaning up the opaque sector

long plagued by bad debts, cor-

ruption and nepotism.

Vietnam’s communist lead-

ers have vowed to target the

banking business as they wage

a sweeping anti-graft campaign

which observers say is unprec-

edented in its scope and scale.

The government said it is

weeding out bad actors, while

critics say it is also eliminating

political foes in the process.

The latest bankers and

executives jailed are accused

of causing losses of more than

$257mn in an elaborate lending

scheme involving Vietnam’s

Construction Bank (VNCB), ac-

cording to the off icial newspaper

of the justice department of Ho

Chi Minh City.

VNCB’s former head Pham

Cong Danh was found guilty of

overseeing an illegal lending

scheme between VNCB, other

allied banks and 29 private com-

panies to which he had ties.

The companies were unable

to repay the money and VNCB

was eventually sold to the cen-

tral bank for $0 in 2015.

Danh was given 20 years in

jail for “deliberate wrongdoings...

causing serious consequences”,

the newspaper said, while his

accomplices were given terms

ranging from 10 years in jail to a

two-year suspended sentence.

It was the second guilty

verdict for Danh, who was con-

victed in a connected banking

corruption trial in 2016.

Trump’s trade war hits one thing that was working – energy exports to ChinaBy Clyde RussellLaunceston, Australia

US President Donald Trump claims that his

tariff s on trade are “working big time”, but this

ignores signs that the best hope the United

States had for boosting exports to China is be-

ing crushed as Beijing clamps down on energy

imports.

One of Trump’s stated aims in launching

tariff s against Chinese imports was to lower

the trade deficit between the United States and

China, which is in the region of $375bn a year.

The Trump administration has imposed

tariff s on $34bn of annual trade with China,

with $16bn more due to be implemented in

coming days. China has matched the $34bn and

proposed charges on $60bn more.

In a potentially massive escalation, Trump

has threatened to impose tariff s on over

$500bn of Chinese goods – virtually all of

China’s annual exports to the United States.

“Tariff s are working big time,” Trump said

in a tweet on Sunday. “Every country on earth

wants to take wealth out of the US, always to

our detriment.

I say, as they come, tax them.” The latest

Chinese response included proposed tariff s on

liquefied natural gas (LNG). The fuel now joins

crude oil, certain refined products and coal on

the list of US imports that may be slapped with

duties of up to 25%.

In some ways, the addition of LNG to the list

is symbolic.

It’s already clear that Chinese companies

have dramatically scaled back their purchases

of US energy products.

China imported about 313,000 barrels per

day of US crude in the first six months of 2018,

according to vessel-tracking and port data com-

piled by Thomson Reuters Oil Research and

Forecasts. At about $70 a barrel, this was worth

just below $4bn, giving a potential annual trade

of around $8bn.

That may sound like small change in the

overall context of US trade with China.

But crude oil represented one of the few

areas where China could have realistically

increased its purchases from the United States.

China was also the biggest market for US

crude producers, representing about 16% of

total exports, while for China, US imports were

a measly 3.5% of the total.

It’s likely that US crude exporters will be able

to find other buyers, but they may have to off er

discounts or other incentives to build market

share.

While US crude exports to China appear to

have held up in August, with about 342,000

bpd expected to arrive, they seem set for a

slump in September.

So far, about 203,000 bpd have been booked

for arrival next month, according to vessel-

tracking data, and the window for more cargoes

to be added is closing, given it takes at least

three weeks for a tanker to make the journey

from the Gulf of Mexico to China’s east coast.

Unipec, the trading arm of China’s largest

refiner Sinopec, has suspended crude imports

from the United States, Reuters reported on

August 3, citing three sources familiar with the

situation. It is not clear how long the temporary

halt will last, but one of the sources said Unipec

has no new bookings of US crude until at least

October.

LNG was another product where the United

States had real potential to boost exports to

China, something Trump touted before launch-

ing his trade war.

China has overtaken South Korea to become

the world’s number two importer of the super-

chilled fuel behind Japan.

Rapid growth is likely to continue as Beijing

continues to implement anti-pollution meas-

ures largely aimed at reducing the burning of

coal. China’s imports of US LNG were about

1.9mn tonnes in the first seven months of year,

according to vessel-tracking data, representing

just 6.9% of total purchases of 27.6mn tonnes.

August’s imports are likely to be around

150,000 tonnes, with two vessels heading from

the United States to China, roughly matching

the two cargoes off loaded in both June and

May, but well below this year’s peak of seven,

in January.

No cargoes at all have yet been booked for

September, raising the possibility that China’s

imports of US LNG will drop to zero, even

though any tariff action still has to be imple-

mented. Similar to crude oil and LNG, coal was

another area where Trump could have made a

diff erence to US exports to China.

China isn’t a major buyer of US coal, import-

ing mainly high-grade coking coal used in

steel-making.

However, with the price of Australian thermal

coal reaching 6-1/2 year highs, above $120 a

tonne, US exports of this type of fuel used in

power stations would have been competitive.

Instead, US coal exports to China appear to

be trending lower, with about 336,000 tonnes

booked for arrival on four vessels in August

– down from the peak this year of 505,300

tonnes on seven ships in April, and also below

the average of 365,000 tonnes for the first

seven months of the year.

As yet, no cargoes for September delivery

have been booked, although this may change

since some coal is exported from Long Beach

in California, meaning it has a shorter journey

time of around three weeks to reach China.

Overall, what the vessel-tracking data is

showing is that Chinese imports of US energy

are heading lower, even ahead of potential

tariff s.

Clyde Russell is a columnist for Reuters. The

opinions expressed here are those of the author.

BUSINESS5Gulf Times

Tuesday, August 7, 2018

ReutersShanghai/Beijing

Chinese state media yesterday lambasted US President Don-ald Trump’s trade policies in an

unusually personal attack, and sought to reassure investors anxious about China’s economy as growth concerns battered its fi nancial markets.

China’s strictly controlled news out-lets have frequently rebuked the United States and the Trump administration as the trade confl ict has escalated, but they have largely refrained from specifi -cally targeting Trump.

The latest criticism from the overseas edition of the ruling Communist Party’s People’s Daily newspaper singled out Trump, saying he was starring in his own “street fi ghter-style deceitful dra-ma of extortion and intimidation”.

Trump’s desire for others to play along with his drama is “wishful think-ing”, a commentary on the paper’s front page said, arguing that the United States had escalated trade friction with China and turned international trade into a “zero-sum game”.

“Governing a country is not like do-ing business,” the paper said, adding that Trump’s actions imperilled the na-tional credibility of the United States.

The heated dispute between the world’s two biggest economies has roiled fi nancial markets including stocks, currencies and the global trade of commodities from soybeans to coal in recent months.

Last month, the International Mon-etary Fund warned that escalating trade confl icts following US tariff actions on its trading partners threaten to derail the global economic recovery.

The United States and China imple-mented tariff s on $34bn worth of each other’s goods in July.

Washington is expected to soon im-plement tariff s on an additional $16bn of Chinese goods, which China has al-ready said it will match immediately.

On Friday, China’s fi nance ministry unveiled new sets of additional tariff s on 5,207 goods imported from the Unit-ed States worth $60bn.

That move was in response to the Trump administration’s proposal of a 25% tariff on $200bn worth of Chinese imports.

The trade war, rising corporate bank-ruptcies, and a steep decline in the value of the yuan versus the dollar have raised concerns that China’s economy could face a steeper slowdown.

Recent data showed growth has al-ready started to cool.

The government has responded by releasing more liquidity into the bank-ing system, encouraging lending and promising a more “active” fi scal policy.

US companies are putting in place measures to cushion the impact of the trade row, including price hikes, and a number of companies – from industrial fi rms to home furnishers and toymak-ers – have said they will move some sourcing and manufacturing outside of China.

China’s exports are expected to have maintained solid growth in July despite the new tariff s on billions of dollars of shipments to the United States, though the outlook has darkened as both sides raised the stakes in the trade brawl.

The vitriol from the People’s Daily follows Trump’s comments on Twit-ter from Saturday in which he boasted that his strategy of placing steep tariff s

on Chinese imports was “working far better than anyone ever anticipated”, and that Beijing was now talking to the United States about trade.

Trump cited losses in China’s stock market as he predicted the US market could “go up dramatically” once trade deals were renegotiated.

China’s stocks were lower yesterday as Beijing’s latest tariff threats escalated the tit-for-tat Sino-US trade war, while the yuan weakened after briefl y edging up despite the central bank’s latest ef-forts to shore up the tumbling currency.

Michael McCarthy, Sydney-based chief market strategist at CMC Markets and Stockbroking, wrote in a note to clients that while China’s proposed new tariff s appeared proportionate, “White House tweets claiming an upper hand for the US over the weekend risk an-other round of confi dence sapping ex-

changes.” A fl urry of articles in Chinese state media emphasised the resilience of China’s economy and downplayed concerns about the impact of the Sino-US trade war.

“Market participants foresee a rela-tively stable Chinese currency in the near term, without fear of impacts from the US-China trade dispute.

They expect solid economic growth momentum amid policy fi ne-tuning,” an article in the offi cial English-lan-guage China Daily newspaper said, cit-ing Chinese economists.

On Friday, the People’s Bank of Chi-na said it would require banks to keep reserves equivalent to 20% of their clients’ foreign exchange forwards positions from Monday, in a move to stabilise the yuan.

“Leading China’s economy on a sta-ble and far-reaching path, we have con-

fi dence and determination,” another commentary in the main edition of the People’s Daily said.

Trump has threatened tariff s on over $500bn in Chinese goods, covering vir-tually all US imports from the Asian giant, demanding that Beijing make fundamental changes to its policies on intellectual property protection, tech-nology transfers and subsidies for high technology industries.

The nationalist Global Times, re-sponding in an editorial late on Sunday to White House economic adviser Larry Kudlow’s remarks that China should not underestimate Trump’s resolve, said China did not fear “sacrifi cing short-term interests”.

“China has time to fi ght to the end. Time will prove that the US eventually makes a fool of itself,” the Global Times said.

Trump’s trade extortion won’t work, says China state media

Introducing 5G among major challenges for Imran-led govtInternewsIslamabad

The incoming government of Pakistan, led by Pakistan Te-hreek-e-Insaf, is going to face

a host of challenges immediately after coming to power in the next few days.

Among major tasks in a variety of areas, it will have to pay special atten-tion to promoting information tech-nology, particularly the introduction of next generation 5G technology.

During the tenure of previous Pakistan Muslim League – Nawaz (PML-N) government, the cabinet had approved in September last year the launch of 5G technology with directive to the Pakistan Telecom-munication Authority (PTA) to start testing the new technology in market before its expected commercial avail-

ability after 2020. The entire world is transforming with rapid technologi-cal advancements and almost every country is striving to adopt new tech-nology as quickly as possible. It is said that a major reason behind the esca-lating US-China trade dispute is the scramble to win the $12tn technology market.

Beijing has laid ambitious plans to become the world leader in artifi cial intelligence by 2030. It may not be an exaggeration if the trade dispute is called a technology war as US Presi-dent Donald Trump considers Chi-nese companies as a bigger threat in that area.

The next generation 5G technol-ogy will allow people to download data in seconds. It will be a special tool to connect billions of Internet us-ers and devices as well as help realise the dream of smart cities and provide

vital support to the plan of bringing driverless cars to roads.

Mainland China, the world’s largest smartphone market, expects total in-vestments in 5G mobile communica-tion networks to reach $411bn during the period 2020 to 2030.

China’s telecom major Huawei Technologies is in the race to become a global leader in 5G technology and has signed commercial deals with big telecom operators across Europe and Asia. It has inked 25 memoranda of understanding with telecom op-erators to conduct trials of 5G equip-ment, according to media reports.

The company has been able to keep a steady growth momentum in the fi rst half of 2018 with revenue reach-ing 325.7bn yuan ($47.6bn) despite some slowdown in the global telecom and smartphone market.

The trade row between the US and

China over winning the market may spread to Pakistan as well. China has a strong presence in Pakistan in the wake of $60bn Pakistan-China Eco-nomic Corridor (CPEC).

As part of CPEC, Caretaker Prime Minister Nasirul Mulk inaugurated an optical fi bre cable link between the two countries recently which would provide land-based connectivity.

The owner of this cable is the Spe-cial Communication Organisation (SCO) of Pakistan and Huawei was the engineering, procurement and construction (EPC) contractor.

Huawei may also play a leading role in introducing 5G technology in Pakistan. However, according to industry sources, 5G is more expen-sive than 4G, therefore, the incom-ing government may take some time in introducing the technology in the country.

US President Donald Trump welcomes Chinese President Xi Jinping at Mar-a-Lago state in Palm Beach, Florida (file). Chinese state media yesterday lambasted Trump’s trade policies in an unusually personal attack, and sought to reassure investors anxious about China’s economy as growth concerns battered its financial markets.

BMW Korea apologises as vehicles catch fi re

ReutersSeoul

BMW’s South Korean unit apologised over a spate of engine fi res, estimated by

the country’s transport ministry at 27 over January to July, that has prompted a government probe and a major backlash from consumers.

BMW said it will launch a re-call of 106,000 diesel vehicles, including the 520d, starting from August 20, citing defects in the exhaust gas recirculation system as the root cause of the fi res.

“For the recent series of fi re incidents happened in the country, we sincerely apologise for causing worry and anxiety among people and government authorities,” BMW Korea Chair-man Kim Hyo-joon said at a press conference yesterday.

BMW, the second-most popular foreign carmaker in South Korea, said it had learned of the problems in 2016, but it identifi ed the root cause of the problem in June this year. The automaker has announced a “technical campaign” in Europe, followed by recalls in South Ko-rea, citing similar failure rates of the system in both regions.

South Korea’s transport minis-try said it has urged BMW execu-tives to cooperate in the ongoing probe, saying they were falling short of submitting related docu-ments. The government launched the probe into the aff ected mod-els on July 16. Last week, Trans-port Minister Kim Hyun-mee said the country would investi-gate the case in a “thorough and transparent manner” and take legal action if needed.

A total of 13 South Korean owners of BMW vehicles fi led a class action lawsuit against the German automaker on Friday, claiming compensation worth 5mn won ($4,447.13) each, say-ing they could not drive their cars out of fear the faulty part could catch fi re, Yonhap News Agency reported. BMW, which trails only Mercedes in imported car sales in South Korea, saw sales more than double to 59,624 vehicles last year, from fi ve years ago.

Driven by South Korea’s free trade deals with Europe and the United States, foreign car mak-ers’ share of the domestic mar-ket had risen to 15% last year, from under 1% in 2001.

Pakistan stock index predicted to hit 50,000 points by end-Dec

InternewsIslamabad

The Pakistan stock market seems

to be freeing itself of the tight bear

hug that has lasted for over the past

fourteen months. The semblance of

political stability post timely elections

has given a new lease of life to the

listless market.

There is an air of optimism. Inves-

tors are torn between the desire to

lap-up high-growth blue-chips avail-

able at attractive discounts and the

fear that until the new government

is seen to be firmly in the saddle, the

number game in Parliament could still

turn the tables.

A random survey by this writer

covering six brokerage houses, some

big brokers and a few fund managers,

suggested that going forward the

overwhelming majority was looking at

a steep rise in stock prices, represent-

ed by the benchmark KSE-100 Index.

They tend to agree that by the end

of December the magic number of

the 100-share index would be 50,000

points. This should be music in the

ears of investors who have suff ered

through perhaps the longest period

of depression in the history of the

Pakistan equity market.

At 50,000, the Index would fall

short of just 3,124 points from the

highest ever level of 53,124 points

reached on May 25, 2017. In the six

trading sessions following the general

elections on July 25, the Index has

gained in all but two lean sessions on

July 31 and August 2.

On net the benchmark has climbed

991 points or 2.4%. The Index closed

last Thursday at 42,330 points. By

that reckoning, it has to propel 7,670

points or 18% in the next five months

to end-December.

Two major brokers, the former

chairman of the Exchange Arif Habib

and the well-known value investor

broker Amin Tai, concurred with

the prospect of seeing the Index at

50,000 by end of 2018.

Habib said that political stability

would pave the way for addressing

the malady that currently plagues the

country’s economy: “decreasing the

fiscal deficit by two per cent and going

to the IMF to replenish the depleting

foreign exchange reserves are steps

that need to be taken to return the

economy to health,” he said.

Agreeing that IMF lending always

has conditionalities attached, Habib

said that nonetheless the programme

would be positive for the economy

as the benefits should pass on to the

country’s financial markets.

The former broker-turned industrial-

ist however added caveats. He said

that the winning political party had

made big promises of creating 10mn

new jobs and providing one million

houses to the homeless, but it has yet

to be seen if these aims are achievable.

Apple hits reset button with new plan to fi x problems in IndiaBloombergBengaluru

In Bengaluru’s busy Madiwala neighbourhood,

a Poorvika Mobile World shop is plastered with

posters for Samsung and Xiaomi and filled with

inexpensive phones from brands like China’s

Oppo and Vivo.

Off to one side is a forlorn display stand

with the iPhone 6, 6s, and X, the latter sitting

upside down. Despite a zero-interest payment

plan and cash-back incentives, Apple Inc is

lucky if the iPhones account for 25 of the 1,000

smartphones the store sells each month, says

manager Nagaraja BC, who goes by one name.

“The average budget of a shopper is about

10,000 rupees,” he says, roughly $150.

The iPhone SE, the cheapest Apple model,

costs almost twice that.

For $100, shoppers can get a Xiaomi Redmi

5A with a bigger battery, better camera, and

greater storage capacity.

Lost in the hoopla around Apple’s $1tn

capitalisation has been its serious trouble in

the world’s second-largest smartphone market,

where it ranks 11th.

The company accounts for 1% of India’s

phone sales and sold fewer than 1mn phones

there during the first half of 2018, according

to Counterpoint Research, while Xiaomi sold

more than 19mn.

During a weeklong trip to India two years

ago, Apple chief executive off icer Tim Cook

told just about every employee, politician, and

Bollywood star he saw that the country was

central to his plans.

During a July 31 earnings call, he barely

mentioned it. Behind the scenes, though, he’s

been working to remould Apple’s failing India

strategy, according to current and former Ap-

ple employees.

Michel Coulomb, a well-regarded veteran

Apple executive, parachuted in from Singapore

to oversee its India operation at the end of last

year. In June, having forced out three top sales

executives, Coulomb spent three days with

senior employees from throughout India at

Apple’s sales and marketing headquarters in

Gurugram, a tech hub south of New Delhi.

He and other executives laid out a strategy

to rekindle iPhone sales that focused on

better retail deals with higher sales targets,

the establishment of Apple stores in India, an

overhaul of the company’s relationships with

independent retailers, and improved apps and

other services aimed more closely at Indians,

including a revamped version of Apple Maps

by 2020, according to people familiar with the

presentation.

“They’ve largely failed in India, despite

comments from the company that they will

see more progress,” says Gene Munster, the

co-founder of Loup Ventures. “I suspect we’re

three years away from Apple highlighting

major growth in India.” Apple declined to com-

ment for this story.

At $1,500, including a 20% import tax, the

iPhone X is a tough sell in a country where

many people still can’t aff ord a smartphone of

any kind. Fewer than 5 % of phones purchased

in India sell for more than $450, according to

Counterpoint.

Even the lesser iPhone 8 costs about $900,

so Apple has fallen back on selling older mod-

els – the iPhone 6, 6s, and SE.

That worked well from 2014-17, but sales

slowed sharply this year.

In part, that’s because the cheaper hardware

is now more than 2 years old, ancient by smart-

phone standards.

Because the government has made it

tough for Apple to open its own retail stores in

India, iPhone prices are less reliable than the

company’s reputation for strict price controls

would suggest.

Indian wholesalers and online retailers often

raise or lower their prices daily without giving

a reason, leading shoppers to haggle or wait in

hopes of a better deal, says Subhash Chandra,

who runs a 510-store chain of gadget shops

called Sangeetha Mobiles.

Two leading retail chains say iPhone sales

have fallen to one-third of their January level.

Instead of off icially lowering its prices, Apple

is in talks with retailers and banks to off er holi-

day deals all year round, according to people

familiar with the plans.

Those people say Apple is also asking some

individual stores to more than quadruple sales

targets, to 40 or 50 iPhones a week, and plans

to cut off retailers that consistently fail to hit

the mark. Retail sales staff will be trained to

teach customers how to use their devices, and

Apple intends to overhaul in-store branding

and product displays.

Executives would conduct daily conference

calls with stores to gauge progress.

Indian stock markets surge to record high; rupee weakensBloombergMumbai

Indian stocks extended recent gains amid an earnings season that has buoyed investor optimism about

the outlook for companies’ profi t growth and sent the benchmark index to record closes in eight of the last 11 trading sessions.

The S&P BSE Sensex climbed 0.4% to 37,691.89 at close in Mumbai.

As many as 12 out of the 19 sectoral sub-indexes compiled by BSE Ltd ad-vanced, led by gauges of banking and telecom stocks.

ICICI Bank Ltd and Axis Bank Ltd were among top performers on the main gauge.

“Quarterly earnings have been bet-ter than estimates so far,” Rajendra Wadher, a director at PRB Securities Ltd, said by phone. “This time the mid and small cap stocks have joined the party, which has raised the overall sen-timents.”

The Sensex has advanced 11% this year, holding its place as Asia Pacifi c’s best performing market.

So far, of the 35 NSE Nifty 50 com-panies that have announced results, 21 have either met or exceeded average analyst estimates.

Nestle India Ltd surged 2% after posting net income that beat the con-sensus analyst estimate by about 6.5%, while Titan Co’s profi t exceeded ex-pectations by about 11%.

The S&P BSE mid cap gauge had its longest winning streak this year and rose to a three-month high.

The index of small cap companies climbed for a 12th straight session.

On the currency front, the rupee closed at 68.89, weakened by 28 paise from the previous close of 68.61 per dollar.

BUSINESS

Gulf Times Tuesday, August 7, 20186

Asian markets’ early rally peters out; yuan strugglesAFPHong Kong

Asian markets were mixed yesterday with early gains pared by continuing concerns about the brewing China-

US trade war, while the yuan struggled to maintain momentum after the Chinese central bank moved to support the unit.

Traders started the day on an upbeat note, tracking their New York and European counterparts following recent painful loss-es. The gains came as data on Friday showed that while the US economy saw a slowdown in jobs creation in July, the pace of hiring re-mained strong over the past three months.

The report also showed wage growth re-mained tepid, helping ease worries about an overheating economy.

The result provided some much-need-ed cheer to markets, which brushed off a warning from Beijing that it would impose new tariffs on $60bn worth of US goods if Washington pushes ahead with levies on $200bn of Chinese imports.

However, while reports said unofficial talks have been held between Beijing and Washington, trade tensions continue to rise, with a top White House adviser call-ing China a bad bet and saying its economy – the world’s second biggest – was strug-

gling. By the end of trade yesterday Tokyo was 0.1% lower at 22,507.32, reversing a morning rally, while Shanghai tumbled 1.3% at 2,705.16.

Seoul dipped 0.1%.Hong Kong closed up 0.5% at 27,819.56

but well off the gains of more than 1% seen soon after the open.

Sydney added 0.6%, Singapore gained 0.8% and Taipei was 0.1% higher.

Manila and Bangkok were flat while Ja-karta jumped more than 1% despite an earthquake that rattled the island of Lom-bok and killed dozens of people.

“Caution about further escalation in US-China trade frictions is still strong,” Yoshi-hiro Ito, chief strategist at Okasan Online Securities, said in a commentary.

The yuan’s early gains petered out, hav-ing made small gains Friday after the Peo-ple’s Bank of China unveiled measures making it harder to bet against the cur-rency, which has suffered steep losses in the past two months.

The unit, which is wallowing around lows not seen for more than a year, bounced back soon after the announcement.

It extended the gains yesterday morning before going into reverse.

The bank’s measure was similar to a move when the currency went into freefall fol-lowing a devaluation three years ago that

rattled global markets. However, analysts were lukewarm on the move.

Some said it indicated Chinese leaders were growing increasingly worried about the unit’s depreciation.

“The yuan kept falling when China did this last time in 2015, so I don’t think the PBoC’s move will significantly change the market tone,” Hao Hong, chief strate-gist at Bocom International Holdings, told Bloomberg News.

“No matter what happened over the weekend, the weakness in Chinese stocks may continue.

The trade war is nowhere near its end and China’s economy is slowing down, so why would the trend reverse?”

In other forex trading, the pound was fighting to recover from Friday’s sell-off after Bank of England boss Mark Carney warned that the chance of leaving the EU without a proper deal was “uncomfortably high” and “highly undesirable”.

While he said such a situation was still unlikely compared with other outcomes, the comments come as leaders on both sides are struggling to reach a compromise with just months to go before Britain is due to formally exit.

The remarks sent sterling tumbling, with an interest rate rise last week unable to pro-vide any support.

Traders are seen at the Bombay Stock Exchange. The Sensex climbed 0.4% to 37,691.89 at close in Mumbai yesterday.

HK defies market slump with record summer IPO haul

BloombergHong Kong

Hong Kong IPO bankers aren’t

getting much of a break this

summer. The city’s market for

initial public off erings is in the

middle of its biggest summer

on record, despite a slumping

benchmark stock index and

some high-profile disappoint-

ments.

Companies including Xiaomi

Corp and China Tower Corp

have completed $19.2bn of

first-time share sales since the

beginning of June, according to

data compiled by Bloomberg.

That volume easily surpasses

the previous record set in 2010,

when companies raised $13.4bn

in the three months through

August, the data show.

Firms pursued stock sales

this year after Hong Kong

Exchanges & Clearing Ltd

approved the biggest change

to its IPO rules in two decades,

opening the door for tech

companies with weighted vot-

ing rights as well as unprofit-

able biotech firms like Ascletis

Pharma Inc.

While deals are getting done,

the Hang Seng Index is trad-

ing down about 16% from its

January high, which has forced

companies to adjust their fund-

raising expectations. The year’s

two biggest IPOs – from China

Tower and Xiaomi – priced at

the low end of their marketed

ranges. The rest of the year

looks like it’s going to be equally

busy.

US bond market takes loomingTreasuries deluge in strideReutersNew York

US government debt supply will likely con-

tinue to boom, but bond market investors

seem to be taking it in stride.

The Treasury Department is having to

sell more debt to finance the government’s

ballooning deficit, stemming from the mas-

sive federal tax overhaul in December and

the spending deal passed in February.

Still, bond yields have remained in a nar-

row range, suggesting investors may not

be fretting about the swelling debt supply.

“There will be no relief from supply

especially from bills going into October,”

said Tom Simons, money market strategist

at Jeff eries & Co in New York.

Supply is expected to run high at least

until the Treasury provides updated

forecasts on its borrowing needs, next due

in November – and might even accelerate

further. This week, the Treasury will sell

$34bn in three-year notes, with $26bn in 10-

year debt tomorrow and $18bn in 30-year

bonds on Thursday.

It will also auction $51bn in three-month

bills and $45bn in six-month bills, together

with an expected $65bn in one-month bills.

The supply will fall short of a record

week of $294bn set in March but continues

a trend higher since February.

Analysts, who said the market would

have no trouble digesting this week’s of-

ferings, see the government as becoming

increasingly dependent on private inves-

tors for cash as the Fed further reduces its

bond holdings.

The goal is to shrink a balance sheet

that had grown to more than $4tn from

three massive rounds of asset purchases to

combat the previous recession.

“I think they will go fine,” Matt Freund,

head of fixed income strategies at Calamos

Investments in Chicago, said of this week’s

debt auctions. Analysts projected that sup-

ply will continue to climb, and that March’s

record-setting weekly amount would be

eclipsed in the coming weeks.

The Treasury said on July 30 it expected

to borrow $56bn more during the third

quarter than its earlier estimate, resulting

in issuing $329bn in debt securities during

this period.

The government’s rising debt load is a

long-term concern for investors, but it is

not atop their list of pressing worries.

The trade dispute between Washing-

ton and Beijing and the pace of Federal

Reserve’s interest rate increases pose far

graver threats to markets and the economy

than more government IOUs, analysts said.

“It is a really, long-term powerful narra-

tive, but when is it going to bite?” Calamos’

Freund said.

As long as the US economy hums along

and its bond yields are higher than most of

its peers, appetite for US Treasuries should

remain solid in the foreseeable future, ac-

cording to most analysts.

Mild inflation and the Fed staying on

a gradual rate-hike path also support US

bond demand, the analysts have said.

“From an absolute yield perspective,

where else are you going to go?” said Eric

Souza, senior portfolio manager at SVB As-

set Management in San Francisco.

On Friday, benchmark 10-year Treasury

yield slipped over 3 basis points at 2.952%

following a mixed July payrolls report.

Yields move inversely to prices.

The US 10-year yield is running 2.50

percentage points above its German

counterpart and 2.85 points higher than

Japanese 10-year yield.

The US budget gap is forecast to hit $1tn

in fiscal year 2020, compared with $804bn

in the fiscal 2018, according to the Congres-

sional Budget Off ice.

A view of the Hong Kong Stock Exchange. The bourse closed up 0.5% to 27,819.56 points yesterday.

ReutersLondon

Simmering trade tensions and a perky dollar cast a cloud over emerging economies yester-

day with Chinese markets under pressure and Turkey’s lira plumbing fresh record lows amid a widening diplomatic rift between Ankara and Washington.

Turkish markets have suff ered hefty losses in the past week af-ter Washington imposed sanc-tions on two of President Tayy-ip Erdogan’s ministers over the trial of an American pastor accused of backing a 2016 coup attempt inTurkey.

Ankara has pledged to retaliate.Adding to the woes was Friday’s

late announcement by the Trump administration that it is review-ing Turkey’s duty-free access to US markets – a move that could aff ect nearly $1.7bn of Turkish imports to the US.

The lira weakened 1.3% in its sixth straight day in the red and hitting a record low of 5.1518 to the dollar with the falls taking its decline since the start of the year to more than 26%.

“Turkey really doesn’t need this – it seems to be locked into some kind of policy on the economic side that they don’t want to hike interest rates, that’s one thing that’s hit the lira hard,” said Per Hammarlund, chief emerging markets strategist at SEB.

“And now the president is not re-ally being pragmatic here and get-ting locked into a prestige discussion with the US where pride is driving policy more than expediency,” he said, predicting more lira weakness ahead.

But emerging markets were also under pressure more widely with currencies elsewhere sliding as trade tensions showed no sign of abating with Washington and Beijing trad-ing fresh tariff threats and Chinese state media launching an unusually personal attack on Trump. The yuan weakened despite the central bank

taking measures to shore up the cur-rency by raising the reserve require-ment ratio to 20% from zero for fi -nancial institutions settling foreign exchange forward dollar sales to clients, eff ectively raising the cost of betting against the yuan.

The currency has fallen for an eighth consecutive week, its longest losing streak since the market rate was unifi ed in 1994.

Chinese onshore equities stum-bled with Shanghai Composite in-dex and the blue-chip CSI300 index both closing 1.3% lower.

“There’s defi nitely an increasing risk this will go on for much longer than people were hoping,” said SEB’s Hammarlund, adding that a moder-ating growth outlook for emerging economies added to the sombre sen-timent.

However, MSCI’s broader emerg-ing market’s index was fl at as losses in China mainland stocks were off set by gains elsewhere with Hong Kong’s Hang Seng index gaining 0.5% and Taiwan up 0.1%.

Escalating tensions with US take toll on emerging stocks

Zad Holding CoWidam Food CoVodafone Qatar

United Development CoSalam International Investme

Qatar & Oman Investment CoQatar Navigation

Qatar National Cement CoQatar National Bank

Qatar Islamic InsuranceQatar Industrial Manufactur

Qatar International IslamicQatari Investors Group

Qatar Islamic BankQatar Gas Transport(Nakilat)Qatar General Insurance & ReQatar German Co For Medical

Qatar Fuel QscQatar First Bank

Qatar Electricity & Water CoQatar Exchange Index Etf

Qatar Cinema & Film DistribAl Rayan Qatar Etf

Qatar Insurance CoOoredoo Qpsc

National LeasingMazaya Qatar Real Estate Dev

Mesaieed Petrochemical HoldiAl Meera Consumer Goods Co

Medicare GroupMannai Corporation Qsc

Masraf Al RayanAl Khalij Commercial Bank

Industries QatarIslamic Holding Group

Investment Holding GroupGulf Warehousing Company

Gulf International ServicesEzdan Holding Group

Doha Insurance CoDoha Bank Qpsc

Dlala HoldingCommercial Bank Pqsc

Barwa Real Estate CoAl Khaleej Takaful Group

Aamal Co

90.30

68.40

9.16

14.05

5.25

6.13

64.78

57.50

174.90

55.90

41.05

57.45

31.84

135.30

17.00

50.00

5.24

145.00

5.20

194.00

96.01

17.50

22.40

37.40

70.49

9.22

7.60

16.31

162.00

70.05

50.00

39.35

11.06

125.00

28.21

5.58

42.00

17.63

10.35

13.39

26.27

14.82

41.98

36.77

10.75

10.00

0.33

-0.83

0.11

0.57

-0.57

1.16

-0.64

-1.29

-0.06

0.00

-0.10

-0.52

-1.61

0.22

0.59

0.00

0.77

0.00

0.00

-0.26

0.00

9.17

0.00

2.13

0.48

-0.32

3.40

1.43

0.00

-2.44

1.01

2.21

0.55

0.09

-2.89

0.18

0.00

3.04

4.44

-0.07

-0.08

3.20

1.52

0.19

1.32

-0.60

3,351

29,894

291,397

193,794

32,899

7,393

8,476

2,474

230,293

-

2,392

12,180

80,512

91,388

734,856

-

6,397

40,923

222,212

35,229

-

948

22,204

67,410

78,322

95,785

1,662,585

371,585

14,659

92,455

5,061

190,236

108,876

148,508

23,219

423,029

3,657

558,912

482,187

5,475

49,554

178,561

428,481

118,471

756,589

52,156

QATAR

Company Name Lt Price % Chg Volume

SAUDI ARABIA

United Wire Factories CompanEtihad Etisalat Co

Dar Al Arkan Real Estate DevAlawwal Bank

Rabigh Refining And PetrocheBanque Saudi Fransi

Saudi Enaya Cooperative InsuMediterranean & Gulf Insuran

Saudi British BankRed Sea International Co

Takween Advanced IndustriesSabb Takaful

Saudi Arabian Fertilizer CoNational GypsumSaudi Ceramic Co

National Gas & IndustrializaSaudi Pharmaceutical Industr

ThimarNational Industrialization C

Batic Investments And LogistSaudi Electricity Co

Saudi Arabia Refineries CoArriyadh Development Company

Al-Baha Development & InvestSaudi Research And MarketingAldrees Petroleum And Transp

Saudi Vitrified Clay Pipe CoJarir Marketing Co

Arab National BankYanbu National Petrochemical

Arabian CementMiddle East Specialized Cabl

Al Khaleej Training And EducAl Sagr Co-Operative Insuran

Trade Union Cooperative InsuArabia Insurance Cooperative

Saudi Chemical CompanyFawaz Abdulaziz Alhokair & C

Bupa Arabia For CooperativeWafa Insurance

Jabal Omar Development CoSaudi Basic Industries Corp

Saudi Kayan Petrochemical CoEtihad Atheeb Telecommunicat

Co For Cooperative InsuranceNational Petrochemical Co

Gulf Union Cooperative InsurGulf General Cooperative Ins

Basic Chemical IndustriesSaudi Steel Pipe Co

Buruj Cooperative InsuranceMouwasat Medical Services Co

Southern Province Cement CoMaadaniyah

Yamama Cement CoJazan Energy And Development

Zamil Industrial InvestmentAlujain Corporation (Alco)

Tabuk Agricultural DevelopmeUnited Co-Operative Assuranc

Qassim Cement/TheSaudi Advanced Industries

Kingdom Holding CoSaudi Arabian Amiantit Co

Al Jouf Agriculture DevelopmSaudi Industrial Development

Riyad BankThe National Agriculture Dev

Halwani Bros CoArabian Pipes Co

Eastern Province Cement CoAl Gassim Investment Holding

Filing & Packing Materials MSaudi Cable Co

Tihama Advertising & PublicSaudi Investment Bank/The

Astra Industrial GroupSaudi Public Transport Co

Taiba Holding CoSaudi Industrial Export Co

Saudi Real Estate CoSaudia Dairy & Foodstuff Co

National Shipping Co Of/TheMethanol Chemicals Co

Chubb Arabia Cooperative InsMobile Telecommunications Co

Saudi Arabian Coop Ins CoAxa Cooperative Insurance

Alsorayai GroupBank Albilad

Al-Hassan G.I. Shaker CoWataniya Insurance Co

Abdullah Al Othaim MarketsHail Cement

Saudi Re For Cooperative Rei

16.62

20.18

10.00

14.40

28.00

33.95

21.30

21.72

32.50

17.10

11.50

19.80

66.20

14.02

18.20

28.20

31.30

27.45

21.50

37.85

18.72

43.00

16.86

16.40

105.20

26.15

44.75

180.00

34.30

74.00

23.58

7.50

14.76

14.10

24.60

20.00

33.95

24.90

92.00

11.62

40.40

128.00

17.80

5.35

64.00

27.75

14.80

15.76

24.20

17.36

27.60

91.00

35.85

18.16

14.96

15.94

21.76

31.50

10.90

13.02

35.20

13.44

8.90

6.07

24.42

8.85

17.82

33.10

51.30

10.90

21.70

11.20

35.50

7.55

47.20

18.44

18.28

13.04

30.70

227.60

14.54

86.90

31.45

11.84

22.30

6.10

12.90

23.02

13.28

25.55

9.53

25.90

73.60

8.48

7.81

1.34

0.30

-0.40

-0.55

0.18

0.44

-5.42

1.02

-1.81

-2.29

3.23

-0.50

1.22

3.55

0.55

-1.40

-0.32

0.55

0.00

-0.39

-1.27

-0.12

0.36

-3.53

1.94

-0.57

-1.65

-0.44

-1.01

0.14

0.77

3.31

-0.40

-7.72

-1.13

-0.50

-0.15

7.05

1.77

1.04

-0.98

-0.16

-0.45

0.00

-2.88

-0.54

-1.33

-1.50

-6.20

1.52

0.55

0.78

-1.10

-0.77

0.27

-0.38

0.46

9.95

-0.37

-0.61

-0.14

0.00

-0.45

-2.10

-1.69

-0.90

0.79

-0.90

-1.54

0.18

-1.36

-1.58

-1.11

3.71

0.32

-0.32

0.00

-1.95

-0.32

2.06

-0.55

-0.11

1.45

0.00

-1.50

-0.33

-2.42

-1.88

-0.30

-0.97

0.63

-0.38

0.14

-0.47

-0.26

83,169

5,242,065

6,077,973

42,080

1,468,876

251,562

498,046

103,405

137,640

189,718

1,324,321

121,519

226,729

906,430

54,033

87,015

54,537

24,232

868,258

85,710

1,668,361

115,127

39,687

109,068

406,504

210,065

7,211

11,875

286,915

88,884

95,137

1,186,651

100,107

830,427

486,556

35,433

19,265

6,059,429

446,420

200,417

280,980

9,042,971

8,737,325

-

335,889

102,047

49,674

142,944

458,015

124,322

106,414

17,699

57,201

79,047

65,666

500,633

62,134

1,250,785

61,823

116,615

80,354

295,330

57,771

1,045,445

34,662

151,961

654,760

26,579

2,427

424,959

57,165

133,454

62,102

1,420,799

224,807

316,678

101,901

468,897

35,701

64,306

89,996

83,024

1,765,119

1,746,193

169,718

1,293,576

220,564

835,708

382,978

211,688

206,956

193,299

68,850

97,588

240,112

Company Name Lt Price % Chg Volume

Solidarity Saudi Takaful CoAmana Cooperative Insurance

Alabdullatif Industrial InvSaudi Printing & Packaging C

Saudi Paper Manufacturing CoAlinma Bank

Almarai CoFalcom Saudi Equity Etf

United International TranspoHsbc Amanah Saudi 20 Etf

Saudi International PetrocheFalcom Petrochemical Etf

Walaa Cooperative InsuranceBank Al-Jazira

Al Rajhi BankSamba Financial Group

United Electronics CoAllied Cooperative Insurance

Malath InsuranceAlinma Tokio Marine

Arabian Shield CooperativeSavola

Wafrah For Industry And DeveFitaihi Holding Group

Tourism Enterprise Co/ ShamsSahara Petrochemical Co

Herfy Food Services CoSaudi Ind Investment Group

Salama Cooperative InsuranceEmaar Economic City

Alahli Takaful CoAnaam International Holding

Saudi Telecom CoAl Alamiya Cooperative Insur

Saudi Industrial Services CoAl-Ahsa Development Co.

National Co For Glass In/TheDur Hospitality Co

Tabuk Cement CoSasco

Saudi CementAseer Trading Tourism & Manu

Nama Chemicals CoSaudi Arabian Mining Co

Yanbu Cement CoSaudi Fisheries

Ash-Sharqiyah Development CoMakkah Construction & Devepl

Al Jouf CementAbdullah A.M. Al-Khodari Son

Knowledge Economic CityAl-Ahlia Cooperative Insuran

Al Rajhi Co For Co-OperativeAlkhodar Ab Equity

Kec Ab EquityAlahlia Ab Equity

Arcci Ab EquityAppc Ab Equity

Albabtai Ab Equity

0.56

-3.16

1.18

0.44

-0.77

-0.96

1.27

0.00

0.63

0.00

-0.18

0.00

-1.75

-0.92

0.34

0.16

-0.38

0.22

-2.72

-2.69

0.38

0.46

3.51

0.50

-0.33

-1.18

0.00

0.37

-6.70

-1.10

-1.10

-0.53

-0.23

-0.67

-0.16

-0.19

0.42

-4.32

-2.16

-0.65

-1.30

0.00

2.88

-0.70

-1.24

-0.92

0.78

0.24

-0.32

0.68

0.19

-4.57

0.52

0.91

0.32

-2.00

-0.94

0.00

-1.08

214,050

656,593

58,473

800,426

405,443

53,301,723

226,082

171,352

198,761

30

199,444

7

167,160

1,846,148

1,510,466

320,216

245,458

34,209

333,372

373,389

793,664

607,065

240,319

51,457

25,985

1,911,629

6,026

267,821

897,567

468,571

168,831

938,587

139,044

35,278

84,667

129,914

11,869

30,257

275,541

109,290

84,492

86,789

920,123

95,378

132,920

70,569

50,648

31,694

107,673

344,044

130,494

1,332,884

974,406

125,746

63,805

66,637

569,900

487,906

350,146

SAUDI ARABIA

Company Name Lt Price % Chg Volume

Sultan Center Food ProductsKuwait Foundry Co Sak

Kuwait Financial Centre SakAjial Real Estate Entmt

Kuwait Finance & InvestmentNational Industries Co Ksc

Kuwait Real Estate Holding CSecurities House/The

Boubyan Petrochemicals CoAl Ahli Bank Of Kuwait

Ahli United Bank (Almutahed)National Bank Of Kuwait

Commercial Bank Of KuwaitKuwait International Bank

Gulf BankAl-Massaleh Real Estate Co

Al Arabiya Real Estate CoKuwait Remal Real Estate Co

A’ayan Real Estate Co SakInvestors Holding Group Co.K

Al-Mazaya Holding CoAl-Madar Finance & Invt CoGulf Petroleum Investment

Mabanee Co SakcInovest Co Bsc

Al-Deera Holding CoMena Real Estate Co

Amar Finance & Leasing CoUnited Projects For Aviation

National Consumer Holding CoAmwal International InvestmeEquipment Holding Co K.S.C.C

Arkan Al Kuwait Real EstateGfh Financial Group Bsc

Energy House Holding Co KscpKuwait Co For Process PlantAl Maidan Dental Clinic Co KNational Shooting CompanyAl-Ahleia Insurance Co Sakp

Wethaq Takaful Insurance CoSalbookh Trading Co Kscp

Aqar Real Estate InvestmentsHayat Communications

Soor Fuel Marketing Co KscTamkeen Holding Co

Burgan Co For Well DrillingKuwait Resorts Co KsccOula Fuel Marketing Co

Palms Agro Production CoMubarrad Holding Co Ksc

Shuaiba Industrial CoAan Digital Services Co

First Takaful Insurance CoKuwaiti Syrian Holding Co

National Cleaning CompanyUnited Real Estate Company

AgilityKuwait & Middle East Fin Inv

Fujairah Cement IndustriesLivestock Transport & Tradng

International Resorts CoNational Industries Grp Hold

Warba Insurance CoFirst Dubai Real Estate Deve

Al Arabi Group Holding CoMobile Telecommunications Co

Eff ect Real Estate CoTamdeen Real Estate Co KscAl Mudon Intl Real Estate Co

Kuwait Cement Co KscSharjah Cement & Indus Devel

Kuwait Portland Cement CoEducational Holding Group

Asiya Capital Investments CoKuwait Investment Co

Burgan BankKuwait Projects Co Holdings

Al Madina For Finance And InKuwait Insurance Co

Al Masaken Intl Real EstateIntl Financial Advisors

First Investment Co KsccAl Mal Investment Company

Bayan Investment Co KsccEgypt Kuwait Holding Co Sae

Coast Investment DevelopmentPrivatization Holding Compan

Injazzat Real State CompanyKuwait Cable Vision Sak

Sanam Real Estate Co KsccIthmaar Holding Bsc

Aviation Lease And Finance CArzan Financial Group For Fi

Ajwan Gulf Real Estate CoKuwait Business Town Real Es

Future Kid Entertainment And

63.00

204.00

98.00

150.00

47.00

175.00

30.00

51.00

1,025.00

314.00

303.00

828.00

520.00

259.00

262.00

41.80

30.90

36.00

56.90

14.10

88.00

94.90

25.90

680.00

86.50

18.00

25.00

37.40

650.00

70.00

62.50

28.40

81.90

105.00

30.00

237.00

1,220.00

16.70

411.00

28.10

45.50

70.00

79.00

124.00

14.00

86.90

54.60

122.00

50.00

58.60

0.00

19.40

40.50

30.00

52.00

68.40

895.00

22.40

62.10

205.00

20.70

167.00

67.00

41.00

67.20

493.00

20.10

379.00

30.00

385.00

75.00

1,120.00

315.00

37.90

132.00

281.00

232.00

26.90

310.00

58.00

25.60

40.90

18.30

52.00

336.00

31.50

61.00

84.00

8.00

40.50

31.40

351.00

28.50

20.70

53.00

102.00

-2.93

0.00

0.00

2.74

-3.49

0.57

3.81

0.00

0.99

-4.85

1.34

0.98

0.97

-0.38

-2.96

-1.88

1.98

4.35

-5.01

2.17

-0.34

0.64

1.17

0.00

-1.14

0.00

-5.30

-9.88

0.00

0.00

0.81

-3.73

0.00

0.00

0.00

0.00

0.00

-1.76

0.00

-1.40

-0.66

1.45

0.00

0.81

0.00

8.63

0.18

0.83

0.00

0.00

0.00

2.11

-10.00

0.00

-3.53

0.00

2.29

0.00

0.00

9.63

-2.36

1.83

-1.47

-3.76

-5.35

-0.80

0.00

0.00

0.00

-3.27

0.00

0.00

-3.08

1.61

2.33

1.08

0.00

-3.93

4.38

-3.33

0.79

-0.24

-2.14

4.42

0.00

0.32

1.67

-0.83

0.00

9.46

-1.88

-1.13

-8.06

-2.36

1.92

0.00

29,347

685

208,338

47,216

29,250

1,214

100

769,536

94,377

73,131

904,543

4,510,535

34,131

3,849,859

15,408,843

788,815

72,173

1,455,305

243,100

2,603,000

541,307

745,510

378,930

100,330

2,277,372

142,500

52,309

48,751

12,150

10

246,290

33,000

17,500

1,260,446

130

289,290

200,000

20,000

34,286

363,510

51,812

14,220

100

371,951

200

1,500

814,530

197,468

9,034

15,100

-

288,400

10

106,008

80,104

1,346

1,851,904

1,500

414

1,657

20,000

9,057,774

4,432

69,560

132,432

4,052,381

650

3,680

71,000

100,000

50,000

38,710

160,000

11,383

484,129

2,364,647

862,970

20,000

5,600

4,345

1,096,911

54,083

1,683,603

1,116,985

60,000

273,609

145,000

10,000

368

5

3,217,609

397,500

18,828

563,572

6,270,193

30,160

KUWAIT

Company Name Lt Price % Chg Volume

Voltamp Energy SaogVision Insurance Saoc

United Power/Energy Co- PrefUnited Power Co Saog

United Finance CoUbar Hotels & Resorts

Takaful OmanTaageer FinanceSweets Of OmanSohar Power Co

Sohar PoultrySmn Power Holding Saog

Shell Oman Marketing - PrefShell Oman Marketing

Sharqiyah Desalination Co SaSembcorp Salalah Power & Wat

Salalah Port ServicesSalalah Mills Co

Salalah Beach Resort SaogSahara Hospitality

Renaissance Services SaogRaysut Cement Co

Phoenix Power Co SaocPackaging Co Ltd

OoredooOminvest

Oman United Insurance CoOman Telecommunications Co

Oman Refreshment CoOman Qatar Insurance Co

Oman PackagingOman Oil Marketing Company

Oman National Engineering AnOman Investment & Finance

Oman Intl MarketingOman Flour Mills

Oman Fisheries CoOman Europe Foods Industries

Oman Education & Training InOman Chromite

Oman ChlorineOman Ceramic Company

Oman Cement CoOman Cables Industry

Oman & Emirates Inv(Om)50%Natl Aluminium Products

National SecuritiesNational Real Estate Develop

National PharmaceuticalNational Mineral Water

National Life & General InsuNational Gas Co

National Finance CoNational Detergent Co Saog

National Biscuit IndustriesNational Bank Of Oman Saog

Muscat Thread Mills CoMuscat Insurance Co Saog

Muscat Gases Company SaogMuscat Finance

Muscat City Desalination CoMajan Glass Company

Majan CollegeHsbc Bank Oman

Hotels Management Co InternaGulf Stone

Gulf Mushroom CompanyGulf Investments Services

Gulf Invest. Serv. Pref-SharGulf International Chemicals

Gulf Hotels (Oman) Co LtdGlobal Fin Investment

Galfar Engineering&ContractGalfar Engineering -Prefer

Financial Services Co.Financial Corp/The

Dhofar TourismDhofar Poultry

Dhofar Intl DevelopmentDhofar Insurance

Dhofar Fisheries & Food InduDhofar Cattlefeed

Dhofar Beverages CoConstruction Materials Ind

Computer Stationery IndsBankmuscat Saog

Bank SoharBank Nizwa

Bank Dhofar Saog

0.24

0.15

1.00

3.44

0.10

0.13

0.13

0.10

0.55

0.12

0.21

0.60

1.05

1.49

2.55

0.22

0.60

0.89

1.38

2.38

0.43

0.43

0.12

2.21

0.51

0.34

0.31

0.77

1.75

0.11

0.28

1.10

0.15

0.10

0.52

0.78

0.09

1.00

0.20

3.64

0.40

0.42

0.37

0.92

0.11

0.38

0.04

5.00

0.12

0.10

0.33

0.33

0.13

0.70

3.75

0.18

0.08

0.80

0.28

0.09

0.13

0.18

0.45

0.12

1.25

0.12

0.31

0.09

0.11

0.18

9.50

0.09

0.11

0.39

0.18

0.10

0.49

0.18

0.28

0.20

1.28

0.17

0.26

0.03

0.26

0.37

0.13

0.09

0.17

0.00

0.00

0.00

0.00

2.04

0.00

0.00

0.00

0.00

0.87

0.00

0.00

0.00

0.00

0.00

-2.22

0.00

0.00

0.00

0.00

0.00

0.00

2.63

0.00

0.00

-1.73

0.00

4.89

0.00

0.89

0.00

-3.93

0.00

-1.01

0.00

-1.52

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.85

0.00

0.00

4.17

0.00

3.98

0.00

0.00

0.00

2.33

0.00

0.00

0.00

0.87

0.00

0.00

0.00

1.09

0.00

0.00

0.00

0.00

1.92

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

4.88

0.00

0.00

112,966

-

-

-

45,708

-

-

-

-

60,324

-

-

-

-

-

46,800

-

-

-

-

33,620

970

279,235

-

362,515

327,192

-

216,590

-

521,920

-

13,858

-

651,879

-

6,500

413,611

-

-

-

-

-

1,500

6,000

54,381

-

-

-

-

-

7,125

80,324

-

149,250

-

907,578

-

-

-

649,157

-

-

-

85,000

-

-

-

1,070,561

-

-

-

-

3,150,358

-

-

-

-

-

-

-

-

-

-

-

-

1,365,370

290,000

679,376

3,000

OMAN

Company Name Lt Price % Chg Volume

Aloula CoAl-Omaniya Financial Service

Al-Hassan Engineering CoAl-Fajar Al-Alamia Co

Al-Anwar Ceramic Tiles CoAl Suwadi Power

Al Sharqiya Invest HoldingAl Maha Petroleum Products M

Al Maha Ceramics Co SaocAl Madina Takaful Co Saoc

Al Madina Investment CoAl Kamil Power Co

Al Jazerah Services -PfdAl Jazeera Steel Products Co

Al Jazeera ServicesAl Izz Islamic Bank

Al Buraimi HotelAl Batinah PowerAl Batinah Hotels

Al Batinah Dev & InvAl Anwar Holdings Saog

Al Ahlia Insurance Co SaocAhli Bank

Acwa Power Barka SaogAbrasives Manufacturing Co S

A’saff a Foods Saog0Man Oil Marketing Co-Pref

#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security

0.53

0.28

0.04

0.75

0.10

0.12

0.10

0.74

0.20

0.10

0.04

0.38

0.55

0.28

0.11

0.08

0.88

0.12

1.13

0.09

0.11

0.37

0.16

0.78

0.05

0.59

0.25

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.06

1.74

2.00

-1.06

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.50

0.00

0.00

0.00

0.00

1.87

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-

-

-

-

41,455

23,000

1,237,306

50,268

52,542

1,559,918

-

-

-

-

180,353

203,315

-

-

-

1,000

917,712

-

-

-

-

-

-

-

-

-

-

-

-

-

OMAN

Company Name Lt Price % Chg Volume

Waha Capital PjscUnited Insurance Company

United Arab Bank PjscUnion National Bank/Abu Dhab

Union Insurance CoUnion Cement Co

Umm Al Qaiwain General InvesSudan Telecommunications Gro

Sharjah Islamic BankSharjah Insurance Company

Sharjah GroupSharjah Cement & Indus DevelRas Al-Khaimah National Insu

Ras Al Khaimah White CementRas Al Khaimah Ceramics

Ras Al Khaimah Cement Co PscRas Al Khaima Poultry

Rak PropertiesOoredoo Qpsc

Oman & Emirates Inv(Emir)50%National Takaful Company

National Marine Dredging CoNational Investor Co/The

National Corp Tourism & HoteNational Bank Of Umm Al Qaiw

National Bank Of Ras Al-KhaiNational Bank Of Fujairah

Methaq Takaful InsuranceManazel Real Estate Pjsc

Invest BankIntl Holdings Co Pjsc

Insurance HouseGulf Pharmaceutical Ind Psc

Gulf Medical ProjectsGulf Cement Co

Fujairah Cement IndustriesFujairah Building Industries

Foodco Holding PjscFirst Abu Dhabi Bank Pjsc

Finance HouseEshraq Properties Co Pjsc

Emirates Telecom Group CoEmirates Insurance Co. (Psc)

Emirates Driving CompanyDana Gas

Commercial Bank InternationaBank Of Sharjah

Axa Green Crescent InsuranceArkan Building Materials Co

Alkhaleej InvestmentAldar Properties Pjsc

Al Wathba National InsuranceAl Qudra Holding Pjsc

Al Khazna Insurance CoAl Fujairah National Insuran

Al Dhafra Insurance Co. P.S.Al Buhaira National Insuranc

Al Ain Ahlia Ins. Co.Agthia Group Pjsc

Abu Dhabi Ship Building CoAbu Dhabi Natl Co For Buildi

Abu Dhabi National Takaful CAbu Dhabi National Oil Co Fo

Abu Dhabi National InsuranceAbu Dhabi National Hotels

Abu Dhabi National Energy Co

1.81

2.00

1.06

3.54

2.03

0.00

1.01

0.52

1.24

2.84

1.30

1.05

3.50

0.75

2.45

0.79

1.89

0.65

72.90

0.50

0.66

3.06

0.58

1.95

2.71

4.20

2.77

0.80

0.46

2.04

1.23

0.85

2.15

1.78

1.01

1.20

1.56

3.48

14.00

1.67

0.60

16.95

7.20

6.95

1.08

0.73

1.07

0.54

0.59

2.10

2.02

12.75

1.00

0.25

300.00

3.85

2.20

38.00

4.73

1.70

0.51

4.40

2.47

3.85

2.95

1.23

1.12

0.00

0.00

0.57

0.00

0.00

0.00

0.00

1.64

0.00

-3.70

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.48

0.00

0.00

2.22

0.00

-6.11

0.00

0.00

0.00

-1.94

0.00

0.00

0.00

3.32

0.00

0.00

0.30

0.00

0.00

0.00

0.00

0.00

0.00

5.36

0.00

-0.49

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-0.58

2.00

0.00

0.00

0.00

1.72

4.24

886,212

-

-

360,178

-

-

-

100,000

1,617,000

-

735

-

9,165

-

-

64,000

-

2,821,229

-

-

-

-

-

-

-

10,000

-

-

64,726

-

1,111

-

-

-

254,520

-

-

-

5,431,178

-

1,720,397

599,318

-

-

2,082,695

-

1,000,000

-

57,999

-

5,065,503

-

-

-

-

-

-

-

330,597

30,000

47,440

-

233,636

-

1,190,000

37,125

UAE

Company Name Lt Price % Chg Volume

Zain Bahrain BsccUnited Paper Industries Bsc

United Gulf Holding BscTrafco Group Bsc

Takaful International CoSeef Properties

National Bank Of Bahrain BscNass Corp Bsc

Khaleeji Commercial BankIthmaar Holding Bsc

Investcorp Bank -$UsInovest Co Bsc

Gulf Hotel Group B.S.CGfh Financial Group Bsc

Esterad Investment Co B.S.C.Eskan Bank Realty Income Tr

Delmon Poultry CoBmmi Bsc

Bbk BscBahrain Telecom Co

Bahrain National HoldingBahrain Kuwait Insurance

Bahrain Islamic BankBahrain Flour Mills Co

Bahrain Duty Free ComplexBahrain Commercial Facilitie

Bahrain Cinema CoArab Banking Corp Bsc-$Us

Aluminium Bahrain BscAlbaraka Banking Group

Al-Salam BankAhli United Bank B.S.C

#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security#N/A Invalid Security

0.00

0.00

0.00

0.00

0.00

0.22

0.60

0.10

0.09

0.10

8.95

0.29

0.52

0.38

0.10

0.10

0.00

0.71

0.44

0.25

0.39

0.00

0.14

0.00

0.71

0.75

`

0.39

0.63

0.30

0.10

0.69

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-4.76

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-1.35

-0.79

0.00

0.00

0.00

0.00

1.43

0.00

0.00

1.30

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-

-

-

-

-

114,572

16,841

141,000

109,000

95,000

10,000

50,000

18,240

978,910

100,000

100,000

-

15,000

75,091

192,432

5,053

-

25,000

-

10,000

7,500

-

343,295

49,000

508,325

26,700

10,161,958

-

-

-

-

-

-

-

-

-

-

-

-

-

BAHRAIN

Company Name Lt Price % Chg Volume

Specialities Group Holding CAbyaar Real Eastate Developm

Kgl Logistics Company KsccCombined Group Contracting

Jiyad Holding Co KscBoubyan Intl Industries Hold

Gulf Investment House KscBoubyan Bank K.S.C

Ahli United Bank B.S.COsos Holding Group Co

Al-Eid Food KscQurain Petrochemical Industr

Ekttitab Holding Co SakReal Estate Trade Centers Co

Acico Industries Co KsccKipco Asset Management CoNational Petroleum Services

Alimtiaz Investment GroupRas Al Khaimah White Cement

Kuwait Reinsurance Co KscKuwait & Gulf Link Transport

Humansoft Holding Co KscAutomated Systems Co Kscc

Metal & Recycling CoGulf Franchising Holding Co

Al-Enma’a Real Estate CoNational Mobile Telecommuni

Unicap Investment And FinancAl Salam Group Holding Co

Al Aman Investment CompanyMashaer Holding Co Ksc

Manazel HoldingTijara And Real Estate Inves

Jazeera Airways Co KscCommercial Real Estate Co

National International CoTaameer Real Estate Invest C

Gulf Cement CoHeavy Engineering And Ship B

National Real Estate CoAl Safat Energy Holding Comp

Kuwait National Cinema CoDanah Alsafat Foodstuff Co

Independent Petroleum GroupKuwait Real Estate Co Ksc

Salhia Real Estate Co KscGulf Cable & Electrical Ind

Kuwait Finance HouseGulf North Africa Holding Co

Hilal Cement CoOsoul Investment Kscc

Gulf Insurance Group KscUmm Al Qaiwain General Inves

Aayan Leasing & InvestmentAlrai Media Group Co KscNational Investments CoCommercial Facilities CoYiaco Medical Co. K.S.C.C

Munshaat Real Estate ProjectNoor Financial Investment Co

Al Tamdeen Investment CoCredit Rating & Collection

Ifa Hotels & Resorts Co. K.SSokouk Holding Co Sak

Warba Bank KscpViva Kuwait Telecom Co

Mezzan Holding Co Kscc

75.00

18.70

46.10

421.00

89.00

30.20

19.10

519.00

211.00

98.90

66.50

338.00

25.50

24.00

231.00

77.00

845.00

131.00

66.00

195.00

113.00

3,445.00

125.00

72.80

20.00

34.00

800.00

57.00

32.50

50.00

47.20

34.00

0.00

750.00

75.00

68.00

27.50

74.10

457.00

118.00

29.90

1,042.00

47.00

448.00

49.80

330.00

385.00

0.00

49.50

120.00

56.50

644.00

64.10

33.10

96.80

92.50

175.00

132.00

110.00

55.00

300.00

18.00

100.00

47.80

238.00

730.00

720.00

-1.32

1.63

0.88

0.00

1.14

-0.98

0.00

0.39

0.00

8.44

0.00

0.90

0.00

4.35

-2.53

-1.28

-0.47

0.00

0.00

0.00

2.73

-0.14

-7.41

-1.49

0.00

0.29

0.76

0.00

0.62

0.00

-5.60

-1.16

0.00

-0.66

-0.40

0.00

1.48

0.00

3.63

0.00

4.91

0.00

2.17

6.41

-0.40

-1.20

0.00

0.00

1.02

0.00

-2.59

0.00

-9.72

5.75

0.10

0.00

1.74

0.00

0.00

0.18

7.14

-8.16

0.00

0.42

0.00

0.00

0.00

570,700

3,064,772

2,429,027

80,295

1

516,751

750,100

276,189

10,340,628

13,558

100

900,266

424,551

39,100

21,000

5,570

138,549

1,892,685

5,000

600

1,021,021

95,885

60,005

50,500

110

13,356

20,647

10,000

394,650

41,666

202,199

87,000

-

511

332,828

179,695

180,850

65,000

818,872

2,503,569

10,000

300

247,356

30,661

850,995

272,000

18,531

-

306,630

250

39,450

18,200

32

14,777,540

13,921

300,351

110,889

1,050

180,256

791,400

20,000

9,350

1,300

16,100

1,434,001

19,074

194,952

KUWAIT

Company Name Lt Price % Chg Volume

LATEST MARKET CLOSING FIGURES

BUSINESS7Gulf Times

Tuesday, August 7, 2018

17.80

18.98

12.04

18.28

7.78

22.64

55.70

32.20

31.85

33.05

22.34

34.10

28.10

15.02

87.80

31.55

53.00

18.54

14.30

18.08

20.86

32.95

14.76

12.00

29.80

18.48

45.00

27.40

20.90

10.78

26.85

11.26

85.50

29.80

12.56

10.62

19.08

18.18

13.58

15.18

45.40

10.90

26.80

57.10

23.90

23.80

52.00

83.00

9.30

7.40

10.80

12.12

58.20

55.30

24.98

23.52

8.41

25.00

45.80

CURRENCIESDOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI

DINARKUWAITI

DINAR

Trade war woes linger onEuropean stock marketsAFP London

World stock markets traded sideways yesterday as trade war fears continued to ham-

per investor sentiment, dealers said.Key eurozone markets Frankfurt

and Paris reversed early small gains to close fl at to lower, while the British pound’s weakness kept London stocks in slightly positive territory.

London’s FTSE 100 rose 0.1% to 7,663.78 points, Frankfurt’s DAX 30 lost 0.1% at 12,598.21 and Paris’s CAC 40 was fl at at 5,477.18 points at close yesterday.

On Wall Street, the Dow was lit-tle changed approaching midday in New York “as escalated trade tensions between China and the US continue to curb conviction”, analysts at the Charles Schwab brokerage said.

But the S&P, where PepsiCo shares rose after CEO Indra Nooyi said she was stepping down, was slightly up, as was the Nasdaq.

Earlier, an equities rally in Asia pe-tered out on concerns about the brew-ing China-US trade war, while the yuan

struggled to maintain momentum af-ter the Chinese central bank moved to support the unit.

“European bourses are struggling to keep their heads above water ... as trade war fears eroded gains in Asian markets,” said Fiona Cincotta, senior analyst at City Index.

“The escalating trade war between the US and China is continuing to hit Chinese stock markets and the yuan although the country’s central bank stepped in yesterday to support the currency.

“The trade dispute is showing no signs of abating on either side with China saying on Friday it plans to bring in tariffs on $60bn worth of US goods.”

“It could end up being a case of who can last longer in terms of taking fi -nancial damage from the rising tariff s.”

Traders in Asia had started the day on an upbeat note, after data on Friday showed that while the US economy saw a slowdown in jobs creation in July, the pace of hiring remained strong over the past three months.

The report also showed wage growth remained tepid, helping ease worries about an overheating economy.

The result provided some much-needed cheer to markets, which brushed off a warning from Beijing that it would impose new tariff s if Washington pushes ahead with levies on $200bn of Chinese imports.

However, while reports said unof-fi cial talks have been held between Beijing and Washington, trade ten-sions continue to rise, with a top White House adviser calling China a bad bet and saying its economy – the world’s second biggest – was struggling.

In forex trading, the pound dipped after International Trade Secretary Liam Fox declared over the weekend that the chances of a no-deal Brexit were now “60-40”, laying the blame on EU chief negotiator Michel Barnier.

Sterling was also fi ghting to recover from Friday’s sell-off after bank of England boss Mark Carney warned that the chance of leaving the EU with-out a deal was “uncomfortably high” and “highly undesirable”.

In emerging markets, the Turkish lira hit fresh lows against the dollar and euro as strains caused by a dip-lomatic spat with the United States compounded concerns over domestic economic policy.

Pedestrians walk past the London Stock Exchange building. The FTSE 100 rose 0.1% to 7,663.78 points yesterday.

Apple IncMicrosoft Corp

Exxon Mobil CorpJohnson & JohnsonGeneral Electric Co

Jpmorgan Chase & CoProcter & Gamble Co/The

Walmart IncVerizon Communications Inc

Pfizer IncVisa Inc-Class A Shares

Chevron CorpCoca-Cola Co/The

Intel CorpMerck & Co. Inc.

Cisco Systems IncHome Depot Inc

Intl Business Machines CorpWalt Disney Co/The

Unitedhealth Group Inc3M Co

Mcdonald’s CorpNike Inc -Cl B

United Technologies CorpBoeing Co/The

Goldman Sachs Group IncAmerican Express Co

Caterpillar IncTravelers Cos Inc/The

208.24

107.92

80.39

132.34

13.13

117.41

82.90

89.60

52.60

40.87

139.61

124.82

46.80

48.82

66.25

43.22

195.72

145.90

116.36

257.26

207.34

157.25

79.54

134.03

345.93

236.29

101.18

140.55

130.31

0.12

-0.11

0.23

0.29

-0.11

0.27

0.69

0.00

0.63

0.81

-0.15

0.62

0.39

-1.64

0.48

0.90

0.04

-1.22

1.99

0.02

0.02

0.67

1.01

0.10

-0.72

0.94

0.39

1.47

0.47

12,139,549

5,977,439

3,282,509

2,554,719

12,229,633

4,790,537

2,510,124

2,023,059

3,610,109

9,556,238

1,911,976

1,634,694

3,233,023

10,730,565

3,762,276

4,973,751

1,046,959

1,821,812

5,919,881

467,253

466,100

1,131,109

2,010,126

915,459

1,430,949

1,067,785

618,084

1,629,854

430,999

DJIA

Company Name Lt Price % Chg Volume

Wpp PlcWorldpay Group Plc

Wolseley PlcWm Morrison Supermarkets

Whitbread PlcVodafone Group Plc

United Utilities Group PlcUnilever Plc

Tui Ag-DiTravis Perkins Plc

Tesco PlcTaylor Wimpey Plc

Standard Life PlcStandard Chartered Plc

St James’s Place PlcSse Plc

Smith & Nephew PlcSky Plc

Shire PlcSevern Trent Plc

Schroders PlcSainsbury (J) Plc

Sage Group Plc/TheAbi Sab Group Holding Ltd

Rsa Insurance Group PlcRoyal Mail Plc

Royal Dutch Shell Plc-B ShsRoyal Dutch Shell Plc-A Shs

Royal Bank Of Scotland GroupRolls-Royce Holdings Plc

Rio Tinto PlcRexam Ltd

Relx PlcReckitt Benckiser Group Plc

Randgold Resources LtdPrudential Plc

Provident Financial PlcPersimmon Plc

Pearson PlcPaddy Power Betfair Plc

Old Mutual PlcNext Plc

National Grid PlcMondi Plc

Merlin EntertainmentMediclinic International Plc

Marks & Spencer Group PlcLondon Stock Exchange Group

Lloyds Banking Group PlcLegal & General Group PlcLand Securities Group Plc

Kingfisher PlcJohnson Matthey Plc

Itv PlcIntu Properties Plc

Intl Consolidated Airline-DiIntertek Group Plc

Intercontinental Hotels GrouInmarsat Plc

Informa PlcImperial Brands Plc

Hsbc Holdings PlcHargreaves Lansdown Plc

Hammerson PlcGlencore Plc

Glaxosmithkline PlcGkn Plc

Fresnillo PlcExperian Plc

Easyjet PlcDixons Carphone Plc

Direct Line Insurance GroupDiageo Plc

Dcc PlcCrh Plc

Compass Group PlcCoca-Cola Hbc Ag-Di

Centrica PlcCarnival Plc

Capita PlcBurberry Group Plc

Bunzl PlcBt Group Plc

British Land Co PlcBritish American Tobacco Plc

Bp PlcBhp Billiton Plc

Berkeley Group Holdings/TheBarratt Developments Plc

Barclays PlcBae Systems Plc

Babcock Intl Group PlcAviva Plc

Astrazeneca PlcAssociated British Foods Plc

Ashtead Group PlcArm Holdings Plc

Antofagasta PlcAnglo American Plc

Admiral Group Plc3I Group Plc

#N/A

1,183.50

0.00

0.00

260.90

3,911.00

186.12

722.00

4,393.00

1,570.00

1,109.00

259.40

171.80

0.00

690.50

1,153.50

1,252.00

1,361.50

1,515.50

4,443.50

1,933.50

3,114.00

331.60

667.00

0.00

623.60

458.60

2,602.50

2,561.00

252.00

1,081.50

3,923.00

0.00

1,684.50

6,876.00

5,494.00

1,749.00

686.60

2,461.00

911.60

8,140.00

210.90

5,696.00

806.90

2,201.00

379.20

500.60

297.60

4,468.00

62.57

260.70

937.70

291.40

3,650.00

165.50

170.00

672.40

5,870.00

4,749.00

543.20

790.00

2,921.00

708.60

2,118.00

510.00

314.00

1,578.40

0.00

980.60

1,867.00

1,553.50

170.35

336.40

2,827.00

6,895.00

2,565.00

1,639.00

2,754.00

144.65

4,424.00

128.85

2,128.00

2,292.00

238.50

645.60

4,172.50

566.80

1,687.00

3,700.00

534.80

188.56

627.60

708.00

493.70

5,821.00

2,466.00

2,333.00

0.00

942.60

1,678.00

1,974.00

939.00

0.00

0.55

0.00

0.00

0.04

-0.03

0.71

-0.06

0.54

-0.32

0.64

-0.04

0.59

0.00

0.17

-0.82

-0.44

0.37

0.17

0.32

0.23

-0.22

0.79

1.06

0.00

-0.73

-0.84

0.17

0.65

-2.25

-1.14

-1.73

0.00

0.48

0.16

-2.07

0.11

0.97

0.98

0.40

0.00

0.00

0.60

-0.23

-1.57

1.12

-2.64

0.71

-0.47

0.03

0.62

-0.63

-0.95

-0.65

0.95

-0.56

0.39

0.51

0.79

-1.24

0.48

-0.27

-1.01

1.97

-0.43

-1.29

1.62

0.00

-3.34

0.08

0.26

-0.38

-0.24

0.14

0.22

0.55

0.12

0.55

0.77

-0.74

-3.05

0.09

0.57

1.75

-1.59

-0.41

1.12

-0.66

0.65

1.13

-0.07

0.42

0.77

-0.14

-0.43

0.94

1.21

0.00

-1.77

-0.87

0.41

0.64

0.00

2,321,480

-

-

7,500,492

229,420

61,771,051

1,990,380

1,246,343

691,955

1,532,745

33,634,540

8,767,718

-

11,984,643

2,676,061

2,754,428

1,517,569

1,556,732

873,641

1,484,988

522,734

11,851,106

4,336,764

-

1,785,241

2,484,265

4,973,092

9,987,181

28,196,725

3,755,762

5,366,342

-

3,050,786

1,333,948

729,885

3,359,223

740,808

555,674

1,817,508

196,354

-

385,119

3,562,918

1,706,053

2,150,099

1,336,787

3,235,610

500,430

105,905,182

13,142,582

915,819

7,213,412

422,658

16,178,045

2,334,978

4,271,418

415,980

593,495

2,207,240

3,487,570

1,419,358

24,911,615

731,476

1,869,707

46,262,869

6,513,410

-

1,419,153

1,594,448

1,102,746

3,430,843

5,372,379

2,115,273

215,411

878,425

2,167,528

536,602

19,560,907

802,447

14,456,969

1,462,593

451,943

22,605,579

2,871,384

2,291,405

31,358,338

5,146,042

705,517

2,149,161

171,584,177

5,633,818

1,010,259

8,969,965

1,999,552

3,479,702

1,837,061

-

1,526,769

3,235,958

248,549

1,327,945

-

FTSE 100

Company Name Lt Price % Chg Volume

Hitachi LtdTakeda Pharmaceutical Co Ltd

Jfe Holdings IncSumitomo Corp

Canon IncNintendo Co Ltd

Eisai Co LtdIsuzu Motors Ltd

Unicharm CorpShin-Etsu Chemical Co Ltd

Smc CorpMitsubishi Corp

Asahi Group Holdings LtdKeyence Corp

Nidec CorpNomura Holdings Inc

Daiichi Sankyo Co LtdSubaru Corp

Ntt Docomo Inc

756.20

4,770.00

2,487.00

1,864.50

3,570.00

36,890.00

9,844.00

1,637.00

3,429.00

11,060.00

36,790.00

3,184.00

4,962.00

58,750.00

15,930.00

519.40

4,586.00

3,232.00

2,930.50

-0.20

0.23

0.04

-1.04

-0.42

-3.58

-0.37

3.61

-0.23

-0.81

-0.73

0.86

-2.48

-1.46

-1.03

0.08

-0.30

-1.04

2.00

11,089,000

2,415,900

2,253,000

3,251,800

1,961,600

2,218,000

698,900

5,194,400

2,130,800

690,000

263,700

3,244,500

1,838,200

242,800

729,000

13,583,100

876,900

4,137,200

5,170,400

TOKYO

Company Name Lt Price % Chg Volume

Sumitomo Realty & DevelopmenSumitomo Metal Mining Co Ltd

Orix CorpDaiwa Securities Group Inc

Softbank Group CorpMizuho Financial Group Inc

Central Japan Railway CoNitori Holdings Co Ltd

T&D Holdings IncToyota Motor Corp

Hoya CorpSumitomo Mitsui Trust Holdin

Japan Tobacco IncOsaka Gas Co Ltd

Sumitomo Electric IndustriesOno Pharmaceutical Co Ltd

Ajinomoto Co IncMitsui Fudosan Co Ltd

Daikin Industries LtdToray Industries Inc

Bridgestone CorpSony Corp

Astellas Pharma IncJxtg Holdings Inc

Nippon Steel & Sumitomo MetaSuzuki Motor Corp

Nippon Telegraph & TelephoneSompo Holdings Inc

Daiwa House Industry Co LtdKomatsu Ltd

West Japan Railway CoMurata Manufacturing Co Ltd

Kansai Electric Power Co IncDenso Corp

Dai-Ichi Life Holdings IncMazda Motor Corp

Mitsui & Co LtdKao Corp

Sekisui House LtdOriental Land Co Ltd

Secom Co LtdTokio Marine Holdings Inc

Aeon Co LtdFanuc Corp

Daito Trust Construct Co LtdOtsuka Holdings Co Ltd

Resona Holdings IncAsahi Kasei Corp

Kirin Holdings Co LtdMitsubishi Ufj Financial Gro

Marubeni CorpMitsubishi Chemical Holdings

Fast Retailing Co LtdMs&Ad Insurance Group Holdin

Kubota CorpSeven & I Holdings Co Ltd

Inpex CorpSumitomo Mitsui Financial Gr

Ana Holdings IncMitsubishi Electric Corp

Honda Motor Co LtdTokyo Gas Co Ltd

Tokyo Electron LtdPanasonic Corp

Fujitsu LtdEast Japan Railway Co

Itochu CorpFujifilm Holdings Corp

Yamato Holdings Co LtdChubu Electric Power Co Inc

Mitsubishi Estate Co LtdMitsubishi Heavy Industries

Shiseido Co LtdShionogi & Co Ltd

Recruit Holdings Co LtdJapan Airlines Co Ltd

Nitto Denko CorpKddi Corp

Rakuten IncKyocera Corp

Nissan Motor Co Ltd

3,920.00

3,977.00

1,746.00

651.60

9,433.00

196.20

22,645.00

16,315.00

1,707.00

7,133.00

6,764.00

4,397.00

3,082.00

2,178.50

1,810.00

2,829.50

1,875.50

2,547.00

13,065.00

849.50

4,299.00

6,074.00

1,829.00

817.00

2,265.00

7,327.00

5,181.00

4,491.00

3,912.00

3,206.00

7,662.00

18,450.00

1,572.00

5,483.00

2,130.00

1,336.00

1,847.50

8,237.00

1,842.00

11,945.00

8,556.00

5,212.00

2,285.00

22,140.00

17,695.00

5,039.00

615.50

1,558.50

2,743.50

677.20

897.80

991.70

48,320.00

3,425.00

1,699.00

4,505.00

1,227.50

4,417.00

3,900.00

1,502.00

3,392.00

2,707.00

19,585.00

1,449.50

759.20

10,170.00

1,963.00

4,597.00

3,332.00

1,665.50

1,824.50

4,139.00

8,091.00

6,033.00

3,074.00

3,975.00

8,395.00

3,069.00

766.40

6,866.00

1,049.00

-0.08

0.45

0.78

-0.61

2.18

-0.66

-0.64

-0.28

-2.04

-1.20

-1.34

-1.35

-0.61

0.09

-0.14

-0.53

-0.27

-0.10

0.19

-1.56

-0.56

-0.61

0.80

0.48

1.36

4.60

0.02

-0.11

-0.10

-0.19

-0.29

-1.15

0.00

-0.47

-1.27

0.19

-0.11

0.88

1.01

-0.71

0.21

-0.91

0.51

1.03

-0.90

1.25

-0.44

-0.38

-1.58

-2.29

-0.66

0.01

0.08

-0.15

0.98

0.04

-0.12

-1.43

-0.74

0.03

0.36

-0.39

-1.93

-1.36

0.57

0.20

0.41

0.20

-1.24

-0.57

-1.16

-3.07

-0.21

-0.30

-0.87

-0.40

-1.62

0.03

2.93

0.34

0.58

TOKYO

Company Name Lt Price % Chg

Aluminum Corp Of China Ltd-HBank Of East Asia Ltd

Bank Of China Ltd-HBank Of Communications Co-H

Belle International HoldingsBoc Hong Kong Holdings Ltd

Cathay Pacific AirwaysCk Hutchison Holdings Ltd

China Coal Energy Co-HChina Construction Bank-H

China Life Insurance Co-HChina Merchants Port Holding

China Mobile LtdChina Overseas Land & Invest

China Petroleum & Chemical-HChina Resources Beer Holding

China Resources Land LtdChina Resources Power Holdin

China Shenhua Energy Co-HChina Unicom Hong Kong Ltd

Citic LtdClp Holdings Ltd

Cnooc LtdCosco Shipping Ports Ltd

Esprit Holdings LtdFih Mobile Ltd

Hang Lung Properties LtdHang Seng Bank Ltd

Henderson Land Development

3.19

30.55

3.61

5.61

0.00

37.55

11.88

86.85

3.20

6.98

18.86

15.86

69.25

23.15

7.35

35.20

26.85

14.80

17.42

9.47

10.80

90.00

12.52

7.32

2.02

1.12

15.88

205.60

42.05

0.00

0.99

0.00

0.90

0.00

1.62

0.00

3.39

1.59

0.43

-0.42

0.76

0.00

-1.70

0.14

0.28

-0.56

-0.94

0.23

-0.63

-0.37

2.51

0.97

0.00

-0.49

0.00

-1.24

1.58

0.96

19,153,389

1,039,907

189,696,153

30,561,919

-

11,067,609

4,359,164

11,569,709

7,634,487

210,997,194

33,266,786

3,329,324

9,838,315

15,935,191

47,937,277

12,990,349

9,223,921

3,487,012

15,495,839

22,985,641

4,689,847

4,274,407

38,078,166

3,231,317

1,848,044

3,250,972

2,837,748

1,970,397

1,881,953

HONG KONG

Company Name Lt Price % Chg Volume

Hong Kong & China GasHong Kong Exchanges & Clear

Hsbc Holdings PlcHutchison Whampoa Ltd

Ind & Comm Bk Of China-HLi & Fung Ltd

Mtr CorpNew World Development

Petrochina Co Ltd-HPing An Insurance Group Co-H

Power Assets Holdings LtdSino Land Co

Sun Hung Kai PropertiesSwire Pacific Ltd - Cl ATencent Holdings Ltd

Wharf Holdings Ltd

15.88

224.00

72.65

0.00

5.75

2.69

42.55

10.74

5.70

70.00

55.95

12.72

119.50

84.50

353.00

25.60

1.93

0.00

0.48

0.00

0.70

-1.47

-0.12

-0.37

0.35

-0.14

1.36

0.16

0.50

-0.88

0.91

-0.39

21,211,222

3,265,071

30,859,249

-

274,027,461

11,149,279

1,441,871

6,137,433

80,906,293

29,058,391

3,755,061

2,967,920

1,574,482

906,842

21,446,403

2,631,120

HONG KONG

Company Name Lt Price % Chg Volume

Zee Entertainment EnterpriseYes Bank Ltd

Wipro LtdVedanta Ltd

Ultratech Cement LtdTech Mahindra Ltd

Tata Steel LtdTata Power Co Ltd

Tata Motors LtdTata Consultancy Svcs Ltd

Sun Pharmaceutical IndusState Bank Of India

Reliance Industries LtdPunjab National Bank

Power Grid Corp Of India LtdOil & Natural Gas Corp Ltd

Ntpc LtdMaruti Suzuki India Ltd

Mahindra & Mahindra LtdLupin Ltd

Larsen & Toubro LtdKotak Mahindra Bank Ltd

Itc LtdInfosys Ltd

Indusind Bank LtdIdea Cellular Ltd

Icici Bank LtdHousing Development Finance

Hindustan Unilever LtdHindalco Industries Ltd

Hero Motocorp LtdHdfc Bank Limited

Hcl Technologies LtdGrasim Industries Ltd

Gail India LtdDr. Reddy’s Laboratories

Coal India LtdCipla Ltd

Cairn India LtdBosch Ltd

Bharti Airtel LtdBharat Petroleum Corp Ltd

Bharat Heavy ElectricalsBank Of Baroda

Bajaj Auto LtdAxis Bank Ltd

Asian Paints LtdAmbuja Cements Ltd

Adani Ports And Special EconAcc Ltd

523.05

377.90

277.05

224.35

4,177.80

667.10

553.25

71.85

254.05

1,975.55

576.15

308.50

1,192.60

90.05

189.45

169.25

156.75

9,286.40

932.40

873.15

1,290.45

1,282.80

301.80

1,360.65

1,999.80

54.90

315.10

1,979.30

1,730.30

216.10

3,297.10

2,114.30

956.50

999.40

376.35

2,234.40

283.15

637.95

0.00

18,889.35

385.75

401.00

75.05

150.55

2,687.90

596.80

1,397.40

228.50

397.35

1,524.00

0.47

1.26

-0.34

0.88

0.24

0.66

-0.22

-0.69

-1.70

-0.20

-1.66

3.09

1.33

2.16

-0.39

1.47

0.19

1.08

1.28

-1.45

0.03

-2.04

-0.71

-0.25

-0.80

-0.54

3.31

0.09

-1.85

2.13

1.43

-0.35

-0.74

-0.68

-3.05

-2.05

1.40

-0.48

0.00

-0.98

3.00

0.01

1.42

0.64

-0.09

3.84

-1.02

1.06

-0.55

0.35

SENSEX

Company Name Lt Price % Chg

WORLD INDICESIndices Lt Price Change

GCC INDICESIndices Lt Price Change

Dow Jones Indus. AvgS&P 500 Index

Nasdaq Composite IndexS&P/Tsx Composite Index

Mexico Bolsa IndexBrazil Bovespa Stock Idx

Ftse 100 IndexCac 40 Index

Dax IndexIbex 35 Tr

Nikkei 225Japan Topix

Hang Seng IndexAll Ordinaries Indx

Nzx All IndexBse Sensex 30 Index

Nse S&P Cnx Nifty IndexStraits Times Index

Karachi All Share IndexJakarta Composite Index

25,533.69

2,848.28

7,844.39

16,420.24

49,270.90

81,383.90

7,663.78

5,477.18

12,598.21

9,722.70

22,507.32

1,732.90

27,819.56

6,359.00

1,577.54

37,691.89

11,387.10

3,285.34

30,945.14

6,101.13

+71.11

+7.93

+32.38

+11.08

-31.67

-51.08

+4.68

-1.80

-17.55

-17.10

-17.86

-9.68

+143.24

+32.60

+6.92

+135.73

+26.30

+19.61

+69.72

+93.59

Doha Securities MarketSaudi Tadawul

Kuwait Stocks ExchangeBahrain Stock Exchage

Oman Stock MarketAbudhabi Stock MarketDubai Financial Market

9,933.22

8,230.13

#N/A N/A

1,352.39

4,420.34

4,883.54

2,977.78

+36.48

-12.58

#N/A N/A

-1.34

+49.90

+77.24

-0.11

“Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on this data.”

903,000

1,070,100

3,541,400

5,485,600

4,565,800

108,674,700

190,600

195,700

2,244,100

5,729,600

1,536,900

1,004,400

2,654,500

753,200

1,194,600

1,500,100

2,360,900

2,455,600

444,800

7,470,500

1,165,200

3,326,300

4,665,000

8,098,900

3,673,700

3,682,600

1,939,900

626,600

771,600

2,787,600

235,200

844,200

1,270,300

1,220,100

4,650,400

3,068,200

3,749,400

869,100

2,119,000

248,200

309,100

1,360,700

1,477,300

902,300

155,500

674,500

11,134,600

3,504,200

2,731,900

76,511,300

5,540,800

4,533,600

464,800

894,800

3,586,000

812,400

2,795,800

6,783,400

1,135,600

5,033,900

2,505,000

1,207,300

906,100

8,241,200

7,043,000

448,600

3,950,600

774,200

1,091,000

1,204,800

3,839,300

1,865,900

1,700,400

861,800

1,742,300

734,400

588,900

3,540,800

10,292,200

744,400

7,596,800

1,240,736

12,725,124

1,883,606

6,706,079

225,676

2,346,935

5,895,101

2,102,525

12,214,550

1,642,917

4,156,396

33,609,554

4,284,351

52,685,824

2,914,493

5,527,578

2,052,397

262,266

1,806,161

2,828,405

899,789

2,006,804

8,469,260

3,199,267

1,005,859

11,573,027

28,728,015

2,282,029

1,751,402

10,902,974

353,561

1,850,149

1,142,467

758,430

3,033,690

916,076

3,645,088

2,980,323

-

10,382

3,898,345

1,804,474

7,590,073

14,505,103

381,253

23,805,070

847,331

1,723,091

3,124,980

399,699

Volume

Volume

Gulf Times Tuesday, August 7, 2018

BUSINESS8

BUSINESS13Gulf Times

Tuesday, August 7, 2018

New wave of mega LNG projects approachingLNG market may tip into supply deficit in mid-2020s; several large projects set to get green light; LNG seen as fuel to help shift to low carbon economy

ReutersLondon

A new race to build multibillion dollar liquefied natural gas (LNG) plants is gaining momentum after a long hiatus in investments as energy giants sense a widening supply gap within five years.Spending on new, complex facilities that super-chill gas into liquid in order to allow its transportation dried up following the collapse in energy prices in 2014.Appetite was further dampened by fears that a plethora of LNG plants built since the late 2000s would lead to a large supply glut until early in the next decade.But sentiment has radically changed

over the past year. Buoyed by rising oil prices and exceptionally strong demand from rapidly growing economies such as China and India, executives are increasingly confident conditions are once again ripe for new projects. Qatar, the world’s largest LNG producer, is preparing to expand its facilities by around one third to produce 100mn-108mn tonnes per year (mtpa) by 2023-2024.“The glut that people see I don’t see ... If you just count on being pessimistic about the market, and don’t build expansions, you will never catch that upside when the market is up,” Qatar Petroleum president and CEO Saad Sherida al-Kaabi told Reuters in May.The state-owned company expects long-standing partners Exxon Mobil, Royal Dutch Shell, Total and ConocoPhillips to help build and fund the new expansion phases as well as possibly new entrants, he said.A major change in the outlook happened after China strongly boosted

imports of LNG in recent years to reduce coal burn in its fight against pollution.“The supply-demand balance definitely looks more favourable towards producers these days,” said Philippe Sauquet, the head of gas at France’s Total, the world’s second largest LNG trader after Shell.“China will continue to make the real diff erence in demand. I don’t see them slowing down. They are shifting attention to building more and more infrastructure,” Sauquet told Reuters.The LNG market will require over 200mn tonnes per year of new supply through to 2030, or roughly 25-30 mtpa per year in new capacity additions to 2025, according to Bernstein.“We believe 60 mtpa needs to be sanctioned by 2020 and a further 100+ mtpa between 2020-2025 to ensure markets are adequately supplied,” Bernstein said.Liquefaction capacity additions are expected to fall sharply by the end

of 2019 as newly commissioned plants reach their maximum capacity, according to Bernstein.The main source of growth is expected to come from the US, where supplies rose sharply and prices plummeted with the expansion of shale drilling.Investors were highly critical of oil and gas companies earlier this decade as costs ballooned for many LNG projects under development such as Chevron’s $54bn Gorgon project in Western Australia, the most expensive in history, or Shell’s $14bn Prelude LNG, the world’s largest floating structure.But with services costs still languishing in the wake of the 2014 slump and new technologies helping to simplify and improve designs, new projects are able to compete for capital.Executives also say they have learnt from past mistakes.The renewed confidence in the outlook for LNG and the recovery in oil prices that has led to a surge in revenue for energy companies, boards are getting

ready to invest. Exxon last year bought for $2.8bn a 25% stake in Eni’s Rovuma development in Mozambique, which holds a massive estimated resource of 85tn cubic feet.Speaking to Reuters, Eni CEO Claudio Descalzi said partners in the project, Exxon, Korea Gas Corp and China National Petroleum Corp, will take a final investment decision next year so it could be operational by 2023-2024. The project will produce 15mn tonnes of LNG per year, or 5% of global output.Shell, which acquired BG Group in 2016 for $54bn to boost its gas output, is nearing a decision on the development of LNG Canada. It would be its first new LNG project since 2011.“We expect a supply gap in the gas market in the early 2020s ... LNG Canada looks very promising,” Shell chief financial off icer Jessica Uhl said last month.Shell chief executive off icer Ben van Beurden said the Anglo-Dutch company expects the partners in the

Nigeria LNG processing plant, Nigerian National Petroleum Corp, Shell, Total and Eni, to consider its expansion by the end of the year to increase its capacity to 30 mtpa.Shell’s British rival BP and its partner Kosmos Energy will decide on the development of the Tortue field off the coast of Senegal and Mauritania by next year. Global demand for LNG surged by 12% in 2017, far exceeding forecasts, and is expected to grow by up to 10% in 2018, according to analysts at Bernstein.Oil and gas companies have heralded LNG as the fossil fuel of the future thanks to its relatively low carbon emissions.Natural gas, the least polluting fossil fuel, is a key growth area for energy companies which see it playing a pivotal role in the world’s eff orts to reduce greenhouse gas emissions to fight global warming.For companies like Shell and BP, the share of gas production has surpassed that of oil in recent years.

Left: An LNG storage facility of the ENN Group is under construction in Baoding, Hebei province, China (file). A jetty receiving imported natural gas vessels is seen at the PetroChina-controlled Caofeidian gas terminal in Tangshan, Hebei province, China (file). A major change in demand outlook happened after China strongly boosted imports of LNG in recent years to reduce coal burn in its fight against pollution.

BUSINESS

Gulf Times Tuesday, August 7, 201814

German industrial orders plunge most in nearly 1 1/2 yearsOrders fall by 4% in June; economists had expected 0.4% fall; Economy Ministry links drop to trade tensions; IMF: Germany could do more to reduce trade surplus; Sentix: Eurozone investor morale rises in August

ReutersBerlin

German industrial orders fell more than expected in June, posting their steepest monthly drop in nearly

a year and a half, suggesting that trade tensions caused by US President Donald Trump might curtail growth in Europe’s largest economy.

German companies have been spooked by an escalating trade confl ict between the United States and China as their tit-for-tat tariff s hit businesses in Germany.

The United States is Germany’s biggest export market; China its most important trading partner.

The Federal Statistics Offi ce said yes-terday that contracts for “Made in Ger-

many” goods fell by 4.0% on the month in June after rising 2.6% the previous month.

That was the biggest drop since Janu-ary 2017 and undershot a Reuters poll of analysts, who had predicted a 0.4% de-crease.

“Disappointing new orders data show tentative signs of trade tensions hitting the German economy, which doesn’t bode well for the industrial outlook in the sec-ond half of the year,” ING Bank economist Carsten Brzeski said.

But Stefan Kipar, an analyst with Bay-ernLB, said not too much should be read into the industrial orders data, a highly volatile indicator.

“The June reading should not hide the fact that the previous month was very strong... This is not a catastrophe,” Kipar said.

He also said that recent sentiment sur-veys were providing an upbeat outlook for the German economy.

The overall drop in industrial orders was driven by a 4.7% decline in foreign demand, with orders from countries out-side the eurozone falling the most.

Orders for capital goods and consumer goods came in particularly weak.

The Economy Ministry also pointed to trade tensions caused by Trump’s tariff policies: “Regarding the latest develop-ment, uncertainty caused by trade policy probably played a role.”

However, a Sentix survey showed yes-terday that investor morale in the euro-zone improved for the second month running in August as concern about an all-out trade war between the European Union and the United States subsided.

Trump agreed last month to refrain from imposing tariff s on cars imported from the EU while the two sides negoti-ated to cut other trade barriers.

The decision after talks between Trump and European Commission President Jean-Claude Juncker eased fears of a transatlantic trade war.

Germany, whose automotive industry has most to lose from US tariff s on car im-ports from the EU, is the biggest winner from the easing trade tensions between the two trading blocs, Sentix said.

In a further positive sign for the Ger-man economy, the VDMA industry as-

sociation said yesterday that engineering orders jumped by 13% in June from the previous year as demand grew from both domestic and foreign clients.

“Engineering companies can be very satisfi ed with the fi rst half of 2018,” VDMA chief economist Ralph Wiechers said, adding that investment activity had clearly picked up in Germany.

The International Monetary Fund (IMF) repeated yesterday that Germany’s reluctance to reduce its trade surplus was contributing to trade tensions and add-ing to risks that could undermine global fi nancial stability.

“In (current account) surplus countries such as Germany we see hesitant meas-ures, at best, to counteract the surplus,” IMF chief economist Maury Obstfeld wrote in a guest commentary published in German daily Die Welt yesterday.

The IMF has long urged Germany to boost domestic demand by lifting wages and investment to reduce what they call global economic imbalances.

Since his election, Trump has also re-peatedly criticised Germany’s export strength.

Walmart’s seal for green power meets a coal-loving presidentBloombergNew York

The plan laid out by Walmart Inc was bold

and startling: One of the biggest private

electricity users in the US promised to

get half its power from solar and wind by

2025. If successful, Walmart would leap

over Google to become the world’s top

green-energy buyer.

That was November 4, 2016. Days later,

Donald Trump was elected president,

and soon green energy was under attack

while coal was lauded. Taken together,

Trump’s proposals could make renewable

power more expensive — raising hurdles

for Walmart, a company that progressives

love to hate but that has a decade-long

commitment to clean energy.

Once praised by former president Barack

Obama for its green tilt, Walmart must

now forge ahead without an ally in the

White House. Few other companies have

the size and appetite of Walmart to nudge

power markets to be cleaner.

“They can’t really achieve the goals that

they want without the right policies in

place,” said Nathanael Greene, senior

renewable energy advocate at the Natural

Resources Defense Council. “We’re not see-

ing the federal government against them.

They just can’t count on real support.”

So far, there’s no sign Trump policies

have led companies from Amazon.com

Inc to Alphabet Inc’s Google to pull back

on green energy. Corporate purchases

of wind and solar have already topped

last year’s record. And Walmart, while not

mentioning Trump, said in a statement

last week that its “sustainability eff orts are

going to continue as planned.”

“This work is embedded in our business

and we think it’s important to reduce

greenhouse gas emissions,” spokesman

Micah Ragland said.

Walmart embarked on a green push under

chairman Rob Walton (son of founder Sam

Walton) and former chief executive off icer

Lee Scott as early as 2005. A lot of people

scoff ed at its intentions, as the company

was under attack for its labour practices

and for hurting small businesses. And

even inside Walmart, old-timers groused

that the green crusade was a costly

distraction.

But much of that criticism faded once

Walmart became one of the earliest com-

panies to buy clean energy — and showed

it can save money. Rob Walton’s advocacy

of renewables remains strong. Last year,

he co-authored a paper criticising Repub-

licans for challenging climate science. And

Walmart said it was “disappointed” follow-

ing Trump’s decision to withdraw the US

from the Paris climate accord.

Walmart has now become a huge con-

sumer of green power, getting about 28%

of its electricity from renewables. It’s the

eighth largest corporate buyer of wind

and solar power worldwide since 2008,

according Bloomberg NEF.

Walmart’s pledge to almost double green

usage, unveiled by current CEO Doug Mc-

Millon, means using 15.7bn kilowatt hours

of wind and solar energy in 2025, accord-

ing to BNEF. That would exceed the levels

set by 140 companies that have also com-

mitted to switching to green power. And

for comparison, that extra power would be

about the same amount consumed by the

entire nation of Turkmenistan (population

5.4mn) in 2015.

The campaign comes as the cost of wind

and solar is plummeting. So Walmart’s

eff orts aren’t all altruistic, of course. It won’t

discuss its energy costs or how much it

saves, but notes that in many places renew-

able energy is cheaper than electricity from

fossil fuels.

Amazon for example, saved $1.4mn in the

last year from one wind power project,

reaping the benefits after power prices

spiked in January during the cold spell in

the eastern US, according to BNEF.

“We look at what we otherwise would be

paying to the utility,” said Mark Vander-

helm, Walmart’s vice president for energy.

Company green energy targets are “defi-

nitely doable, but it does require some

diligence.”

The biggest hurdle to Walmart’s goal may

be a June 1 directive by Trump for the US

Energy Department to stem the closure

of struggling coal and nuclear plants. Any

subsidies enacted for those generators

would probably depress wholesale power

prices, which in turn could make solar

and wind less economical, according to

Stephen Munro, an analyst at BNEF.

“Policy uncertainty can certainly stall cor-

porate procurement of renewables,” said

BNEF’s Kyle Harrison. But he added that it

remains unclear how any subsidies for coal

and nuclear power would be structured.

The president has also imposed import

duties on solar technology and rescinded

an Obama policy to promote renewable

power. Given those developments, a lot of

big buyers of electric power are taking a

fresh look at their targets, Munro said.

“To the extent that the US government

minimises or eliminates policy support for

clean energy, we believe it has the risk of

depressing clean energy economics over

the long run,” he said.

An employee fits mirrored panels to an ARRI SkyPanel light-emitting diode (LED) light at the ARRI AG cinematic and television lighting factory in Stephanskirchen, Germany. The Federal Statistics Off ice said yesterday that contracts for “Made in Germany” goods fell by 4.0% on the month in June after rising 2.6% the previous month.

Mulvaney’s ‘indispensable’ aide could guide CFPB’s new chiefBloombergNew York

A former aide to one of the Consumer Fi-

nancial Protection Bureau’s fiercest critics

could drive policy decisions at the agency

if President Donald Trump’s nominee

Kathy Kraninger becomes director.

If confirmed by the Senate, Kraninger

would enter the CFPB with wide experi-

ence in setting budgets but little exposure

to financial regulation.

That’s where Brian Johnson, a former aide

to House Financial Services Committee

chairman Jeb Hensarling (R-Texas), comes in.

Johnson was named the CFPB’s acting dep-

uty director July 9 following a seven-month

stint as senior adviser to acting Director

Mick Mulvaney. “At least until Kraninger gets

her feet wet and becomes more knowledge-

able about consumer financial services and

the workings of the bureau, Johnson will de

facto manage the bureau,” Alan Kaplinsky,

the co-chair of Ballard Spahr LLP’s consumer

financial services group, told Bloomberg

Law in an August 1 e-mail.

Kraninger has had decades of experience

in domestic security and budget issues,

including her current role as an associate

director at the Off ice of Management and

Budget. Her resume does not include any

prior work on financial regulatory issues or

much direct experience with the bureau.

Johnson has been in charge of many of

the CFPB’s day-to-day operations because

Mulvaney splits his attention between the

bureau and his full-time job as OMB direc-

tor, according to people with knowledge

of the situation.

Mulvaney called Johnson an “indispensa-

ble adviser” who knows the CFPB “like the

back of his hand” when he announced his

promotion in July. Both Johnson and the

CFPB declined to comment for this story.

Johnson’s previous work for Hensarling

could give some clues about where the

CFPB under Kraninger will go on rulemak-

ing and enforcement.

A guiding principle for him “has been

that the bureau should stay within the

parameters of Dodd Frank, no more and

no less,” Charles Washburn, the co-chair of

Manatt Phelps & Phillips LLP’s consumer

financial services practice, said in an

August 1 e-mail to Bloomberg Law. During

Mulvaney and Johnson’s tenure, that has

meant reconsidering the bureau’s payday

lending rule, reviewing enforcement ac-

tions started under former CFPB director

Richard Cordray, and reviewing the results

of a series of requests for information

about all of the bureau’s operations.

Critics have said many of those moves

reflect the priorities of the House Financial

Services Committee, where Hensarling

and other Republicans routinely chastised

Cordray.

During his time at the committee, Johnson

helped craft legislation that would have

restructured the CFPB and curtailed many

of its current regulatory, supervisory, and

enforcement powers. Johnson also had a

hand in writing bills that were ultimately

signed into law that altered mortgage

servicing and other bureau regulations.

Johnson, who earned economics and law

degrees from the University of Virginia,

also previously worked for Ohio Attorney

General Mike DeWine, another Cordray an-

tagonist. Cordray lost his job as Ohio’s at-

torney general to DeWine in a close 2010

election and is facing off against DeWine

in Ohio’s governor’s race this year.

Romania central bank signals possible pause in rate hikes at 2.5%ReutersBucharest

Romania’s benchmark interest rate may not rise much higher than

its current level as consumer price infl ation will begin to fall, central bank Governor Mugur Isarescu said yesterday.

The bank held its benchmark interest rate at 2.50% yesterday, against market expectations for a quarter point hike.

Isarescu said inflation would fall towards the bank’s 1.5-3.5% target by the end of the year, adding the bank made the right call when it decided to start tightening at the start of the year, prevent-ing the need for higher rate hikes.

Asked whether this meant the end of the tightening cy-cle was near, Isarescu said: “I cannot say at present that the board has mandated me to say that we have won the war, but a battle was won as it is clear infl ation is starting to come down.

There are indeed chances

that the interest rate will not rise too much.”

“We are not in a position to say that we will not hike the rate anymore. We do not know what is happening in Europe and what the word normalisa-tion means.”

The leu was trading down 0.5% on the day at 4.6400 against the euro at 1300 GMT.

Monetary conditions in Ro-mania have tightened over the past four months, with the in-terbank ROBOR rate ask quote rising by 136 bps to 3.40%, well above the benchmark rate, which has itself risen 75 basis points since January.

Five of eight analysts polled by Reuters expected the cen-tral bank to hike the monetary policy rate to 2.75%, the same as the median forecast for the rate at end-2018.

Romanian consumer price infl ation was unchanged at 5.4% on the year in June, well above the central bank target of 1.5-3.5% for this year.

The bank forecasts infl ation at 3.6% at the end of December.

Isarescu will release updated forecasts tomorrow.

London mansion valuesstart to climb on more realistic prices

BloombergLondon

London’s moribund luxury

homes market is showing signs

of bottoming out.

Values in the best districts

rose 1.2% in the second quarter

from a year earlier, the fastest

annual rate in almost three

years, as buyers took advan-

tage of price cuts after higher

sales taxes damped demand.

More homeowners are also

looking to sell, and deals are

rising as pricing becomes more

realistic, researcher LonRes

said in a report, citing a survey

of agents.

An increase in stamp duty,

higher taxes on landlords and

second-home owners and a glut

of new houses have combined

to hurt the performance of the

once red-hot luxury homes

market in the UK capital. Now,

a glance at Internet listings

services show cuts to asking

prices of more than 30% for pe-

riod houses in the centre of the

city as the diff erence between

sellers and buyers on values

narrows.

“The prime central London mar-

ket appears to have woken from

its slumber,” Marcus Dixon, head

of research at LonRes, said in the

report. “Agents still expect Brexit

uncertainty to remain the most

significant barrier to increasing

sales activity over the next 12

months.”

Since the prime central

London market peaked four

years ago, homes valued at

£2mn ($2.6mn) or more have

declined 12%, the researcher’s

data show. Overall, values

there are down 9.6%. Prices

were largely unchanged on a

quarter-by-quarter basis.

Unease among buyers over

purchasing before Brexit takes

eff ect will benefit landlords in

the coming months, according

to the researcher. Rents in the

best districts have risen 3.9% in

the past year to £1,120 a week,

the data show.

BUSINESS15Gulf Times

Tuesday, August 7, 2018

Rusal’s recurring profits surge 75% despite US sanctionsCORPORATE RESULTS

Russian aluminium giant Rusal’s quarterly profit surged thanks to higher market prices for the metal, despite sanctions imposed by Washington.Recurring net profit of Hong Kong-listed Rusal, the world’s largest aluminium producer outside China, was up 75% from a year ago in the second quarter, but 17% lower than this year’s first quarter, the company said yesterday.Recurring net profit is defined as adjusted net profit plus the company’s net eff ective share in Norilsk Nickel’s results.Its results, the first since April 6 when Washington imposed sanctions on it and Russian billionaire Oleg Deripaska, are seen as an initial indication of how Rusal is weathering curbs which have caused worldwide supply disruption.Washington said the sanctions, which struck at allies of Russian President Vladimir Putin, were designed to punish Moscow for its alleged meddling in the 2016 US presidential election — something Russia denies — and other “malign activity”. The sanctions seriously disrupted aluminium supplies, pushing up prices for the metal, which is widely used in diff erent industries from aerospace to beverage packaging, before the US Off ice of Foreign Assets Control (OFAC) granted a waiver to Rusal’s customers.Rusal said the US restrictions had lifted prices.Prices for aluminium were at an average $2,259 per tonne on the London Metal Exchange (LME) in the second quarter, up 18% year-on-year, as “trade wars and imposed import duties, together with the OFAC Sanctions, caused significant growth of premiums and prices,” it said in a statement.Under the sanctions, US customers have until October 23 to wind down business with Rusal.As some orders can take up to two months to process and deliver to customers, particularly for value-added aluminium products, industry sources have said many customers will start to shun the company from August.The sanctions hurt the rouble, pushing it lower.In the second quarter, it was trading at an average 62 per US dollar versus 57.2 the same period a year ago. A weak rouble is supportive for Rusal and other exporters since a vast portion of their costs are rouble-denominated.In a sign of caution, Rusal said its board had not recommended any dividend during the first half of 2018. Last year, the board approved an interim dividend of $0.0197 per share.Rusal said its primary aluminium production was 939,000 tonnes in the second quarter, up 2% year-on-year, while primary aluminium and alloys sales had fallen 22% year-on-year to 783,000 tonnes.The sanctions, the toughest imposed since Moscow’s 2014 annexation of Crimea, roiled aluminium markets and were later watered down. The Treasury Department has since warmed to the idea of removing Rusal from the list altogether.Washington in July extended a delay for investors to divest holdings in Rusal and some other companies from August 5 to October 23, saying it was in talks with Deripaska on how he could cede his control of the company and try to remove it from the sanctions list.The company said its second-quarter adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased 8.2% year-on-year to $552mn in April-June on revenue that dropped 8.7% to $2.25bn.Rusal’s exports and finances may take another hit if Deripaska is unable to persuade Washington to lift sanctions on the aluminium producer by late August, industry sources have told Reuters.US sanctions may also bar Rusal from receiving a dividend from mining giant Norilsk Nickel due in August.As Rusal holds a 27.8% stake in Norilsk, OFAC could treat the dividend as a significant transaction and require it to be paid into a blocked or escrow account, sources have said.Deripaska controls 66% of En+ Group, which in turn controls 48% of Rusal.

Tyson Foods

Tyson Foods Inc, the No 1 US meat processor, beat analysts’ quarterly profit estimates yesterday due to strong demand for beef, but

executives warned that trade disputes were threatening the company’s pork and chicken businesses.China is importing less US pork after Beijing imposed tariff s on American shipments as part of an escalating trade war with Washington.Mexico and Canada also implemented levies, leading to oversupply and, subsequently, lower prices for meat in the US market.Lower prices for pork and beef were also reducing demand for Tyson’s chicken, according to the company.“Tariff s and trade concerns could continue to impact product pricing,” Stewart Glendinning, Tyson’s chief financial off icer , told analysts on a conference call.Last week, Tyson cut its full-year profit forecast, citing uncertainty in trade policies and higher tariff s that have hurt domestic and export prices of meat.Operating income for the chicken business in the third quarter dropped to $189mn, from $294mn a year earlier, according to the company. Operating income for pork was $67mn, down from $136mn last year.“We are clearly not satisfied with our results, particularly in chicken,” chief executive off icer Tom Hayes said on the call.Sales increased in Tyson’s beef business due to higher exports and increased supplies, according to the company.The unit had a record operating income of $318mn in the quarter, up from $147mn a year earlier, Tyson said.“Our challenge really comes down to pork and chicken,” Hayes said.Net income attributable to the company rose to $541mn, or $1.47 per share, in the quarter ended June 30, from $447mn, or $1.21 per share, a year earlier.Analysts on average had expected earnings of $1.40 per share on revenue of $10.28bn, according to Thomson Reuters I/B/E/S.Excluding certain items, the company earned $1.50 per share.The Springdale, Arkansas-based company said sales rose 2% to $10.05bn.

Spire Healthcare

Spire Healthcare shares hit a record low yesterday after it warned of sharply lower full-year core earnings on fewer referrals from Britain’s publicly funded National Health Service (NHS). Spire generates a third of its revenue from work carried out on behalf of the NHS, which has been operating with an about 1bn pound ($1.3bn) deficit and a shortage of beds and staff .Companies such as Spire, BMI Healthcare and Nuff ield Health have helped the NHS cope with the shortage, but their earnings and revenue have taken a hit as the NHS prioritises emergency cases and makes cuts elsewhere, focusing on essential health services.“The current diff icult market conditions — also seen by other operators — had a greater impact on our business in the seven months to July 31, 2018 than we had expected,” chief executive off icer Justin Ash said in a statement yesterday.Revenue linked to the NHS fell 9.5% in the first-half.Shares of the company have mostly underperformed the UK mid-cap index since the company warned on revenue and core earnings margins last year.Spire rival Ramsay Health Care, Australia’s biggest private hospital operator also took a charge and cut its outlook for profit growth in June on a slump in business from the NHS.Diff icult trading conditions and belt-tightening by the NHS has also forced Netcare, which has been in Britain for a decade through a controlling stake in BMI Healthcare, to exit operations in the country.Spire last year rejected a takeover off er from South African private hospitals operator Mediclinic International which has a stake of almost 30%. The cash and paper bid valued Spire shares at around 298 pence.Spire said it expects revenue growth in the second half of the year, and sees benefits from its investments in telephony and central marketing paying off .The company started cost saving plans in other areas of its business and now expects capital expenditure for 2018 at £90mn, £10mn lower

than a previous forecast. Capital expenditure was £118mn in 2017.

Vedanta

Miner Vedanta Resources Plc, set to be taken private by Chairman Anil Agarwal, reported yesterday a 26.3% rise in quarterly core earnings on higher aluminium production and commodity prices, and said it was hopeful of restarting its copper smelter in India.The London-listed company, which operates primarily in India and Africa, has been benefiting from a strong recovery in the prices of metals and oil and gas, and had posted a double-digit percentage growth in core earnings last year.The price rebound had also prompted the miner to expand the production of zinc and aluminium.However, Vedanta reported a core loss of $15mn from copper production, for the three months ended June 30, as output from India fell 73.3% to 24,000 tonnes of copper cathodes.The company had a core profit of $32mn from copper in the year-earlier quarter.Copper production plunged as the company was forced to temporarily shut down its Tuticorin copper smelter in southern India amid protests by local residents over alleged environmental violations.The protests turned violent in May, resulting in the police opening fire and killing 13.“We are hopeful about the restart of the copper plant and would expect it to produce 100 kt of copper cathodes per quarter in line with its capacity on restart,” the company said in a statement yesterday.The fall in copper output was off set by a 37% rise in aluminium production, which contributed nearly a third of Vedanta’s total revenue in the quarter.The company’s quarterly zinc output also fell, by 20%, hurt by lower grades.Vedanta’s earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to $983mn, for the three months ended June 30, from $778mn a year earlier.Revenue rose 15% to $3.55bn.Chairman Agarwal’s family trust last week off ered about $1bn in cash to take the miner private.

Soft Bank

Japan’s SoftBank Group Corp yesterday reported a 49% rise in first-quarter operating profit, boosted by the sale of its stake in Indian e-commerce firm Flipkart — the first public divestment by its Vision Fund.The telecoms and technology firm’s profit was

also bolstered by the sale of the majority of chip designer ARM Holding’s Chinese operations to a local consortium.The sale of the stakes are early signs that SoftBank is able to monetise its investments — a key concern for investors that have seen billions of dollars pumped into tech companies around the world but little profit-taking.SoftBank’s Saudi-Arabian backed Vision Fund, the world’s largest private equity fund, has invested $27.1bn in 29 companies at the end of June.Those investments are not worth $32.5bn, SoftBank said.The fund has upended the world of deal-making with splashy investments in companies such as ride-sharing platform Uber Technologies Inc, co-working firm WeWork Cos and chipmaker Nvidia Corp SoftBank is preparing to list its domestic telecoms unit to raise more cash to feed its insatiable investing activities in what could be Japan’s largest-ever initial public off ering.Profit for the three months through June was ¥715bn ($6.42bn) from ¥479bn a year earlier, SoftBank said.SoftBank did not release a forecast for the current business year, saying there were too many uncertain factors.

Commonwealth Bank of Australia

Commonwealth Bank of Australia is set to report a lower annual profit for the first time in almost a decade, with the end of a housing boom and ballooning funding and regulatory costs chipping away at its margins.The forecast highlights what has been a challenging year for Australia’s biggest lender as it battled hefty penalties for malpractices and a severe blow to its reputation from a public inquiry, or Royal Commission, into financial sector misconduct.The inquiry, which is halfway through what is to be a year-long process, is expected to hang heavy on CBA’s outlook.While none of Australia’s “Big Four” banks have emerged with their reputations untarnished from it, CBA has so far paid the highest price in terms of compliance costs.For the year ended June 30, CBA is likely to post cash earnings of A$9.1bn ($6.70bn), down 5%, according to an average estimate from five analysts polled by Reuters.The last time it posted a weaker profit was in the year to June 2009, according to Thomson Reuters I/B/E/S.The forecast excludes the life insurance unit CBA sold to AIA Group in 2017.“We don’t really have very high expectations from CBA.It’s pretty well-known there are pressures for the whole industry, not just CBA,” said Omkar Joshi, Sydney-based portfolio manager at Regal Funds Management.”Wherever you look, whether it’s volumes or margins, they are both under pressure.”CBA is scheduled to report annual results on August 8. Others among the “Big Four”, Westpac Banking Corp, Australia and New Zealand Banking Group Ltd and National Australia Bank, follow a September-ending calendar and will post their annual results by early November.Australian banks are not required to file quarterly reports, although NAB will make a quarterly disclosure later this month.It is expected to report a lower cash profit of A$1.6bn in the third quarter, on flat revenues and weaker profit margins, Morgan Stanley said.In comparison, its unaudited cash profit last year was A$1.7bn.The four have collectively lost more than A$17bn ($12.51bn) in market value, hurt by damaging revelations of careless and at times fraudulent lending practices, since the inquiry’s start in February.And their problems are far from over.The four banks, which together control about 80% of the country’s deposit and home loan markets — making them some of the world’s most profitable banks, are expected to face a net interest margin squeeze of 4-8 basis points in their respective half-year earnings, analysts polled by Reuters estimate.Short-term funding costs have more than doubled since August 2017, while the pressure to soothe public anger has prevented the lenders from passing on higher costs to customers.Adding to their woes is slower demand for

mortgages. Data this week shows growth in Australian home loans for investment hit record lows in June, falling for the first time since the global financial crisis.This could be the start of a protracted housing downturn, market experts say.The slower market is forcing banks, which get 40-60% of their revenue from mortgages, to lower lending rates at the cost of their profit margins.“You’re not going to encourage businesses by lowering rates by a few basis points.There’s a limit to what you can do with business credit,” Regal Funds’ Joshi said.

HSBC Holdings

HSBC Holdings Plc posted a small increase in first-half pretax profit, as rising expenses from investments in a new growth strategy and a $765mn settlement for alleged mis-selling of US mortgage securities ate into higher revenues.HSBC reported yesterday a pretax profit of $10.7bn in the six months through June, up 4.6% from the year-ago period.As the bank spent on hiring more frontline staff and expanding digital capabilities, its costs climbed 6% to $17.5bn.“HSBC is struggling to convince that its current restructuring to pivot the group toward Asia is delivering the hoped for pick-up in growth,” said Steve Clayton, manager of the Hargreaves Lansdown UK Income Shares fund.HSBC chief executive John Flint, who started in the job in February, set out a three-year plan in June to invest $15-17bn in areas such as technology and in China.“We are taking firm steps to deliver the strategy we outlined in June. We are investing to win new customers, increase our market share, and lay the foundations for consistent growth in profits and returns,” Flint said in a statement.Flint is part of a new management duo at the top of HSBC after Mark Tucker joined as chairman last October.The main points of the bank’s refreshed strategy came as little surprise to HSBC investors, with the focus squarely on further expansion in China and its prosperous southern Pearl River Delta region in particular.The bank is also seeking to expand further in the British mortgage market as one of eight new strategic targets.Pretax profits for the first half from Asia jumped 23% to $9.4bn, representing 88% of the group total.The bank has not seen any impact yet either on its own performance or that of its customers from rising US-China trade tensions, Flint said, but is concerned about how tit-for-tat tariff s could aff ect investor confidence.“I’d be concerned the general rhetoric has a bad impact on investor sentiment and investors go risk-off ,” Flint told Reuters.HSBC’s retail banking and wealth management, and commercial banking divisions performed most strongly in the first half, Flint said, adding both continued to gain from a positive interest rate environment.The bank’s strong performance in its core Asian markets was marred by tumbling profits elsewhere.HSBC said it has set aside $765mn to resolve a civil claim by the US Justice Department over allegations the bank missold toxic mortgage-backed securities in the run-up to the 2007-8 financial crisis.The settlement wiped out almost all of the bank’s profits for the first half of the year in Noth America, where it is trying to turn around a US business that has for years underperformed.Part of that plan includes a push into the US credit card and personal loans market, where it faces a battle against heavily entrenched domestic competition.Flint told Reuters it is too soon to see any results from that new strategy.HSBC’s shares are unlikely to climb significantly until the bank can show its revenues rising above increased costs, analysts and trader said, describing a trend known as ‘positive jaws’ in city parlance.“Our business plans do see us get to positive jaws at the end of the year,” Flint told analysts on a conference call, citing the benefits of rising interest rates on the bank’s profits as one contributor to that outlook.

BUSINESSTuesday, August 7, 2018

GULF TIMES

Trump may relax auto standards while making them harder to meetBloombergWashington

The Trump administration’s plan to ease

vehicle-emission mandates lifts some bur-

dens for automakers but also would strip

away options that have made it easier for

them to comply and have encouraged the

development of electric cars.

Under so-called “flexibilities” in the

government’s current fuel-economy

programme, companies have the freedom

to average fuel economy across their

entire fleet. This enables them to off set

gas-guzzlers by selling electric vehicles

and other super-eff icient autos. They also

get credit for technologies that make cars

more fuel eff icient but don’t necessarily

show up in tailpipe readings.

Car manufacturers warn that ending those

compliance options would be a blow as

they try to develop innovative technolo-

gies for global use. The leaders of the

Alliance of Automobile Manufacturers

and the Association of Global Automakers

implored President Donald Trump to main-

tain “flexible compliance pathways that

pave the way for research and deployment

in advanced fuel-saving technologies” as

the administration rewrites the vehicle

requirements.

“We are global manufacturers; to compete

around the world, we must continue to

invest in both more eff icient internal com-

bustion engine technologies, electric-drive

technologies and fuel cells,” the Alliance’s

Mitch Bainwol and the Global Automakers’

John Bozzella said in a letter to Trump on

August 2.

“Flexibilities will help ensure that research

and development of these innovative vehi-

cle technologies continues to take place in

the US,” the two wrote.

Industry leaders asked Trump to revisit

the fuel eff iciency mandates after the prior

administration concluded, shortly before

President Barack Obama left off ice, that

the existing standards should be main-

tained. But now, automakers worry that

the Trump administration could go too

far, imposing broad changes that result

in years of uncertainty, a prolonged legal

battle, and duelling California and federal

requirements. The potential disappear-

ance of cherished options for satisfying

federal fuel-economy mandates, which

lower the cost of complying with them, is

another potential risk.

A key part of the existing rules are incentives

for advanced clean-car technologies for

which there’s little demand now, but may

be in the future. For example, automakers

receive extra credit for each battery-electric

or hydrogen fuel-cell car they sell, which

can off set another model that’s less-eff icient

than the rules say it needs to be.

In their response to the Trump proposal

last week, Toyota Motor Corp and General

Motors Co emphasised the importance of

such programmes, while Honda Motor Co

encouraged “policy support for the devel-

opment of next-generation technologies.”

The core of the Trump administration’s

proposal, unveiled on August 2, is freezing

US fuel-economy and tailpipe greenhouse

gas emissions requirements at the 2020

level of 37 miles per gallon. That would

replace existing standards that are set to

steadily increase to about 47 mpg by 2025.

Stripping away compliance flexibilities

would make the existing fuel-economy

programme easier to administer and more

transparent, so regulators and consumers

can easily verify what automakers are do-

ing to achieve fuel eff iciency. The current

programme relies on an opaque credit-

trading system, with trades and prices

that can be shielded from public view, the

administration said in its proposal.

But there’s a trade-off , said Bill Wehrum,

assistant administrator for the Environ-

mental Protection Agency’s Off ice of Air

and Radiation. “Used correctly, flexibilities

can actually help improve the way the

programme is implemented,” Wehrum told

reporters on a conference call on Thursday.

“There’s value to that, because companies

like that flexibility to make some cars that

are more eff icient and some cars that are

less. And there’s also value in giving credit

to technologies that don’t necessarily show

up on a dynamometer test — that go beyond

the engine and drive train.”

For instance, automakers can incorporate

advanced aerodynamics into their designs,

helping air move more cleanly around

cars. By doing so, they reduce the power

needed to move cars and push up their fuel

eff iciency, even if the changes never show

up on a tailpipe test. Electric vehicles and

fuel-cell vehicles also get a boost.

GM President Dan Ammann encouraged

more flexibility, not less. For example,

the automaker would like the self-driving

Chevrolet Bolt electric cars it’s planning to

off er to ride-hailing customers next year to

count for more toward compliance.

“There are some enhancements and

changes that could help drive us to the

future that we all want,” Ammann said on

Friday at an event in Detroit. “Once we

start to deploy vehicles like this that are

all-electric and have high utilisation in a

shared environment, we think we should

be getting more credit.”

07-08-2018

Pepsi’s Nooyi ends 12-year run as company’s fi rst female CEOBloombergNew York

Indra Nooyi is stepping down as chief executive offi cer of food and beverage giant PepsiCo Inc, hand-

ing the reins to a top lieutenant in a transition that will draw attention to the dearth of prominent female CEOs in corporate America.

Nooyi, 62, will leave the role in Oc-tober and remain chairman until early 2019. Ramon Laguarta, 54, who has been a candidate to take over since a promotion last year to president, will be just the sixth CEO in the 53-year history of the company.

Nooyi, who is from India, is the fi rst foreign-born CEO of Pepsi and the fi rst woman to lead the chips-and-soda be-hemoth, whose revenue topped $63bn last year. Her departure thins the ranks of female CEOs running S&P 500 com-panies and comes at a time when Pepsi’s North American beverage unit is stag-nating amid a general decline in soda consumption. In 24 years at Pepsi, in-cluding 12 as chief executive, she has helped the Frito-Lay unit grow in a challenging industry and added health-ier drinks and snacks to a portfolio that includes Cheetos and Mountain Dew.

“I’ve had a wonderful time being CEO, but at some point you sit back and say, look, it’s a responsible move to eff ect an orderly transition and to have somebody else take over the leadership of this company,” she said in an inter-view. “Being a CEO requires strong legs and I feel like I ran two legs of a relay race and I want somebody else with nice strong legs and sharp eyes to come and lead this company.”

A 22-year Pepsi veteran, Laguarta ran the Europe Sub-Saharan Africa division before becoming president last year, overseeing global operations, strategy, public policy and government aff airs. A Barcelona native, he worked at lollipop maker Chupa Chups before joining Pepsi.

Nooyi attended graduate school at Yale University and joined Purchase, New York-based Pepsi in 1994 as head of corporate strategy, rising to the CEO job in 2006. At the time only a handful of women ran major US companies.

Nooyi faced down activist investor Nelson Peltz, repelling a bid to break up the company, and has guided Pepsi through a tricky stretch as shifts in how US consumers eat and shop have be-

devilled the largest food and beverage companies in the world.

“Indra’s legacy is that she’s fi gured out in a diffi cult environment that she could run a great company and drive great results and do good at the same time, while having long-lasting im-pact as a leader and global icon,” said Blair Eff ron, co-founder of Centerview Partners, an investment bank and ad-visory fi rm that’s worked with a range of consumer giants including Pepsi.

As she ponders her next chapter, Nooyi said she’ll possibly take a vaca-tion, in addition to watching the New York Yankees baseball team, and, she quipped, “listen to some music, take a walk in the woods.” She hasn’t thought through potential next steps, but at a time when global progress on promot-ing more women to CEO positions ap-pears to have stalled, she plans to help develop more talent to ensure that women are represented in the top ranks of corporate America.

“I think people like me, after we leave privileged CEO jobs, I don’t think we can go silent,” she said. “We have to keep fi ghting the good fi ght to develop women, to mentor them, to support them, so that we can get more highly qualifi ed women — and there’s plenty

of them — into the boardroom, into C suites and into the ultimate CEO job. My job is in fact just beginning once I leave PepsiCo because I can do things now that I was constrained to do when I was CEO of the company.”

The departure of Nooyi drops the number of women CEOs in the S&P 500 to 24, according to data compiled by re-searcher Catalyst, which advocates for more women in executive positions. The list was last updated July 13. Kathy Warden is scheduled to become CEO of Northrop Grumman Corp in January, which would bring the total back to 25.

The packaged food industry in par-ticular has witnessed several key fe-male executive exits in the past year. Campbell Soup Co CEO Denise Mor-rison abruptly departed in May, while former Mondelez International Inc CEO Irene Rosenfeld handed over the reins of the Oreo maker in November.

Like many CEOs in a divisive politi-cal era, Nooyi has found herself a part of political discussions. She described herself at a conference as a supporter of Hillary Clinton in the 2016 election but congratulated Donald Trump for his victory and was part of his short-lived business advisory council.

During an era when a businessman

occupies the White House and corpo-rate leaders including Mark Cuban and Howard Schultz are mentioned as po-tential presidential candidates, Nooyi said she doesn’t see a future for herself in politics.

“I think there are business leaders who like politics and there are business lead-ers who’d be lousy at politics,” she said. “I happen to be in the second group, and so I just want to make sure that whatever I can do behind the scenes to help any cause, I will — that makes sense for me. But politics no, not for me.”

Nooyi is leaving the top job at Pepsi at a time when overall soda consump-tion has dropped to its lowest level in more than 30 years as consumers try to avoid sugary drinks. That’s led Pepsi and competitors to try to diversify into new products perceived as healthier, and to market zero-sugar versions of their soft drinks and retool their diet beverages.

But there have been stumbles. A high-profi le bid in 2015 to reformulate Diet Pepsi led to lower sales, and the company revived its old formula a year later. Nooyi told investors last month that Diet Pepsi is performing well again, but Coca-Cola Co has won more attention this year for its revitalisation of Diet Coke.

A ballyhooed 2012 joint venture with German dairy giant Theo Muller to sell yogurt in North America fi zzled four years later due to slow sales. Pepsi was rebuff ed in 2016 in its attempt to take a major stake in Chobani, the Greek-yogurt maker.

The company pushed into the dairy case with the 2011 purchase of a ma-jority stake in Wimm-Bill-Dann Foods OJSC, Russia’s leading branded food-and-beverage company.

The company’s Frito-Lay unit re-mains a snacking powerhouse with brands like Tostitos, Doritos and Lay’s chips dominating grocery-store shelves. Big Food companies have lost billions in revenue in recent years as consumers gravitate to more natural products made by smaller upstarts. But Frito-Lay, while not immune to the shifts, has defended its turf, control-ling about two-thirds of the US salty-snack market.

Nooyi has also worked to appeal to modern snacks. Frito-Lay has versions of 11 core chip brands without artifi cial ingredients, aiming to break out of the traditional snack aisle and get into or-ganic grocery stores. Products such as Sabra hummus and guacamole, Naked cold-press juices and Lipton Pure Leaf tea have bolstered results.

During Nooyi’s time leading the company, Pepsi shares rose about 80%, while rival Coca-Cola has more then doubled, as has the S&P 500.

Pepsi shares rose 0.7% as of 8:18am in New York yesterday before the start of regular trading.

Nooyi said under her tenure Pepsi considered and passed on large trans-actions that could have dramatically altered the company. “Everybody says, ‘Hey, do a transformative deal, it will put you in the neon lights,’” she said. “The issue is that we’ve got to derive value from large transformative deals. And we didn’t fi nd one that would cre-ate shareholder value.”

Now, Laguarta prepares to take the reins at a tricky time for the com-pany, with pressure ramping up to ig-nite growth, particularly in the North American beverage unit.

“Ramon is the product of a responsi-ble development and succession plan,” Nooyi said. “He’s had a birds-eye view of the whole company and what kind of disruptive moves we would have to make, disruptive productivity, to take us to this next era of growth for this company.”

“Being a CEO requires strong legs and I feel like I ran two legs of a relay race and I want somebody else with nice strong legs and sharp eyes to come and lead this company,” says Nooyi.

Greece gets last bailout tranche as crisis nears endAFPBrussels

Greece received yesterday the fi nal €15bn payment from its eight-year bail-

out programme in what creditors hailed as proof that tough austerity measures were “paying off .”

The payout by the European Stability Mechanism (ESM), the eurozone’s bailout fund, comes ahead of the formal end on August 20 of Greece’s third fi nancial res-cue package since 2010.

The cash landed after Eurozone fi nance ministers in June reached what Greek Prime Minister Alexis Tsipras called a “historic” deal to end the severe debt crisis that has weighed down the country for years.

“The last disbursement and the positive conclusion of the fi nal review send out a message that Greece has come a long way dur-

ing the three years of the ESM pro-gramme,” ESM managing director Klaus Regling said in a statement.

“The commitment and hard work of the Greek people are now paying off .”

Regling said the fi nal set of re-forms agreed by Greece in ex-change for the last payout “includ-ed important actions in the fi eld of tax policy, combatting tax eva-sion, public revenue reforms, and the resolution of non-performing loans.”

In total €9.5bn ($11bn) of the tranche will be used to build up Greece’s cash safety cushion to a hefty €24bn — 22 months of Greece’s fi nancing needs after the bailout ends — according to the ESM.

The other €5.5bn will go on servicing debt.

Greece’s public fi nances spun out of control in 2010, sparking three international bailouts — the last was in 2015 — and threatening

the country’s membership of the euro single currency.

In return Athens had to bow to harsh terms imposed by its credi-tors, especially Germany, with austerity measures and reforms striking at the heart of Greece’s bloated public sector.

Announcing the deal to end the crisis in June, leftist premier Tsipras donned a tie for the fi rst time since taking offi ce, having pledged to wear one only when Greece’s debt was cut.

The deal was expected to be an easy one, but last-minute resist-ance by Germany — Greece’s long-time bailout nemesis and biggest creditor — dragged the talks on for six hours.

“The end of the ESM programme on 20 August will be a milestone for the country. Greece will now have to prove to its partners and the markets that it is committed to not reversing past reforms,” Reg-ling said.

Denmark to investigate Danske Bank over money laundering allegations

ReutersCopenhagen

Denmark’s state prosecu-tor has started a criminal investigation into Danske

Bank over allegations the lend-er had been involved in money laundering through its Estonian branch.

The investigation concerns transactions worth billions of Danish crowns that might have been part of criminal money laundering, the State Prosecu-tor for Serious Economic and International Crime said in a statement yesterday. Shares in Danske Bank have fallen almost a quarter this year following al-legations its Estonia branch was involved in money laundering of some 53bn Danish crowns ($8.2bn) between 2007 and 2015.

Danske Bank has admitted to fl aws in its anti-money launder-ing controls in Estonia in the past and has launched its own inves-tigation, the results of which are expected in September. The pros-ecutor said it was too early to say whether its investigation would lead to criminal proceedings.

Last week, Estonia’s general prosecutor said it had begun a criminal investigation over allega-tions that Denmark’s largest bank had been involved in money laun-dering through the Baltic country.

The Danish prosecutor said it had received a number of crimi-nal complaints in the case.

Bill Browder, once the big-gest foreign money manager in Russia, last month fi led crimi-nal complaints in both Denmark and Estonia concerning Danske Bank. “We are of course at the disposal of (the State Prosecu-tor for Serious Economic and International Crime) in their in-vestigation,” Flemming Pristed, Danske Bank’s group general counsel, said in an e-mail. “We have an ongoing constructive dia-logue with the authorities, and we are available if there are questions that the prosecutor wishes to get clarifi ed further,” he said.