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
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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.
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