BUSINESSBUSINESSTuesday 30 January 2018

PAGE | 19PAGE | 18Ooredoo in

partnership action to support SMEs

Qatar’s non-oil exports hit QR18.1bn

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Commercial Bank’s net profit grows by 20.4%THE PENINSULA

DOHA: The Commercial Bank, its subsidiaries and associates delivered a combined net profit of QR604m for the full-year 2017, an increase of 20.4 percent, compared to QR501m reported for the same period in 2016. The Group’s total assets rose by 6.2 percent to QR138.4bn.

Total asset growth was driven mainly by an increase of QR11.3bn in loans and advances and QR4.2bn in investment securities.

Announcing the financial results, Sheikh Abdullah bin Ali bin Jabor Al Thani, Chairman of the Board of Directors of Com-mercial Bank, said, “2017 was a challenging year for Qatar and Commercial Bank where both the public and private sectors adapted to a new market envi-ronment due to the land, air and sea blockade imposed by Qatar’s neighbours. Both have proven to be resilient. Despite this, Qatar’s

robust macro fundamentals have not materially changed, reflected by an AA- rating by Fitch and Aa3 by Moody’s. Commercial Bank has successfully concluded the first year of the 5-year strategic plan under which it has made good progress in cleaning up its balance sheet, diversifying its loan portfolio geographically and tenor to create a healthier risk profile, and driving efficiencies across the business.”

“Looking ahead, country fun-damentals remain strong which will provide opportunities for Commercial Bank as well. Qatar’s large financial buffers of

approximately $35 billion in net international reserves at the Qatar Central Bank and more than $300 billion of assets man-aged by the Qatar Investment Authority provide a strong liquidity position,” he said.

Spending is set to increase in education, health and construc-tion projects in advance of the FIFA 2022 World Cup for which preparations are on track,” the chairman added.

Hussain Al Fardan, Commer-cial Bank’s Vice Chairman, added, “The impact of the eco-nomic blockade on our business has been minimal, with the

actions taken under the strategic plan already showing results and positioning the Bank to show sig-nificant improved bottom line performance in the coming years.”

Consequently, the Board of Directors have recommended a cash dividend pay-out of 10 per-cent of par value or QR1.0 per share (pay-out ratio of 66 per-cent) subject to approval at the Annual General Assembly on 21 March 2018.

The Group’s net operating income for the Group decreased by 1.4 percent to QR3.52bn for the full year ended 31 December 2017,down from QR3.57bn achieved in the same period in 2016.

Net interest income for the Group increased by 7.6 percent to QR2.51bn for compared to QR2.34bn achieved a year ago, due to an increase in the interest income as a result of higher interest rates as compared to last year.

Net interest margin remains stable at 2.2 percent compared to Q3 2017.

Non-interest income for the Group decreased by 18.3 percent to QR1bn compared with QR1.23bn for the same period last year.

The overall decrease in non-interest income was mainly due to lower income from investment securities as equity holdings were scaled down in line with the strategic plan and foreign exchange income.

Total operating expenses were tightly managed at a Group level, down19.0 percent to QR1.32bn against QR1.63bn.

Costs reductions were pri-marily driven by lower staff and administrative expenses.

The Group’s net provisions for loans and advances increased by 33.8 percent to QR 1.69bn from QR1.26bn for the same period in 2016.The non-per-forming loan (NPL) ratio increased to 5.65 percent from 5.01 percent.

The loan coverage ratio increased to 81.0 percent in the full year ended 31 December 2017 compared to 78.9 percent for the same period in 2016.

→ Continued on page 18

Doha bank unveils aggressive Asian expansion plansSATISH KANADY THE PENINSULA

DOHA: Doha Bank, one of Qatar’s largest private commer-cial banks, has unveiled its aggressive expansion plans in fast-growing Asian economies.

After opening its branches in India, the bank is planning to expand its footprint to Nepal, Vietnam and Sri Lanka.

Doha Bank already has two fully functional branches in Indian cities- Mumbai and Kochi.

The third branch will be opening soon in Chennai city of the Southern Indian state of Tamil Nadu soon.

The soft launching of Chennai branch will be held during the first week of Feb-ruary and the official launch will be held in March/ April, the bank CEO Dr Seetharaman (pictured) said while announcing the full-year finan-cial results of the bank for 2017, recently.

“India is one of the world’s fastest growing economies. With growing opportunities between India and the Gulf region, more tie-ups and col-laborations are coming up. This is going to play immense opportunities for the bank,” Dr Seetharaman said.

In terms of international

expansion, he added, the bank has already received approval to operate in Sri Lanka.

Doha Bank will be commis-sioning the Sri Lankan office very soon.“We will be soon opening our operations in Nepal as well. Also on the card this year is the opportunities to open office in Vietnam”, he said.

Doha Bank’s trade finance portfolio is growing solid. As a whole it is improving between various parts of the world, especially during 2017 and 2018. Doha bank sees com-mendable opportunities in terms of trade finance.

The Bank was named as the Best Trade Finance Bank in Qatar at the Global Finance Awards 2017.

→ Continued on page 18

Blockade triggers QDB’s funding portfolioMOHAMMAD SHOEBTHE PENINSULA

DOHA: The unjust blockade imposed on Qatar by Arab quartet has worked as a major catalyst in the pace of achieving self-sufficiency and industrial diversification in Qatari economy. It has caused a signif-icant jump in the project financing by Qatar Development Bank (QDB) with the combined value of SME-financing in 2017 reaching at QR2bn, said a senior official of the state-backed entity, yesterday.

Khalid Abdulla Al Mana, Executive Director for Business Finance at QDB, said: “The financing by QDB registered a remarkable growth last year. Project financing saw a sharp rise over the last few months, especially after the blockade. Out of the total funding of QR2bn in 2017, about QR1.4bn was invested after the blockade.”

“The blockade has created more business and investment opportunities. It has also worked as a strong catalyst to enhance the pace of economic diversifi-cation and self-sufficiency. And 2018 is going to see more growth than last year in terms of project financing by QDB as some of the major hurdles, such as the avail-ability of land plots, have been addressed,” Al Mana told The Peninsula on the sidelines of a press conference held to launch of the Qatar Self-Sufficiency Exhibition, which will be held at Doha Exhibition and Convention Centre (DECC) from April 1-3.

Preparations for the event

have been moving at a fast pace. Several enthusiastic exhibitors, partners and sponsors have val-idated their commitments. Keeping with the high demand, 10,000 square metres of space at DECC has been allocated to the exhibition area. More than 120 leading local, regional and international production line manufacturers from nearly 20 countries are expected to take part.

Some of the leading coun-tries participating in the event include: Kuwait, Oman, Leb-anon, UK, Turkey, Spain, USA, France, Italy, Germany, Switzer-land, Iran, China, Japan, India, Malaysia and Sweden, with about eight countries having already reserved booth space.

The upcoming exhibition is a clear demonstration that the

country is being steered towards growth and success, under the visionary governance of its leaders, even as the blockade imposed on Qatar is well into its eighth month. The nation has continued to move ahead, dis-playing resilience and a clear determination to grow and become self reliant.

The event is being organised by Hisky for Tourism and Exhi-bitions in collaboration with the Ministry of Economy and Com-merce, while QDB will be the Official Partner, Qatar Airways will serve as the Official Carrier, and Qatari Businessmen Asso-ciation as Development Partner.

Abdulrahman Saleh Al Obaidly, Chairman of Hisky, said: “Hisky for Tourism and Exhibitions is privileged to be able to partner with Qatar’s goal

and commitment towards becoming self reliant, through Qatar Self-Sufficiency Exhibition 2018. This maiden venture is well in line with Qatar’s long-standing position of leading from the front.”

Keeping with the vision of economic diversification, a broad spectrum of sectors have identified for participation. They comprise the food industry, pharmaceutical industry, agri-culture, industrial production and relevant components of the environmental sector such as recycling and sustainability plants, among others. Compa-nies engaged in dairy produc-tion, recycling, and other indus-tries have already confirmed their participation.

→ Continued on page 18

Khalid Abdullah Al Mana (left), Executive Director of Business Finance at Qatar Development Bank; and Abdulrahman Al Obaidly, Chairman of HiSky Tourism and Exhibitions during the press conference on Qatar Self Sufficiency Exhibition Sponsors, yesterday. PIC: BAHER AMIN/ THE PENINSULA

The Group’s cus-tomer deposits in-creased by 9.5% to QR77.6bn, compared with QR70.9bn for the same period last year.

The Group’s net provisions for loans

and advances increased by 33.8%

18 TUESDAY 30 JANUARY 2018BUSINESS

→ Continued from page 17The Group’s loans and

advances to customersincreased by 14.6 percent to QR89.1bn for the full year ended 31 Decem-ber 2017 compared with QR77.8bn for the same period in 2016.

The growth in lending has been generated, mainly from the government, semi-government and services sectors.

The Group’s investment securities increased by 27.6 per-cent to QR19.6bn compared with QR15.4bn The increase is mainly in Government bonds.

The Group’s customer deposits increased by 9.5 per-cent to QR77.6bn, compared with QR70.9bn for the same period last year.

Joseph Abraham, Commer-cial Bank’s Group Chief Executive Officer, commented, “Commercial Bank reported results for the year ended December 2017 demonstrate the impact of strong execution of our strategic plan which called

for building a strong diversified business whilst provisioning legacy loans and improving cost efficiency.”

Despite market conditions, Commercial bank continued to grow its business with the right sector mix underpinned by faster than market growth of 14.6 percent in loans and advances to customers and 9.5 percent in customer deposits.

Consolidated Net Interest Income increased 7.6 percent year on year to QR2.52bn.

“Consolidated Operating Profit increased 13.5 percent year on year to QR2.21bn, driven by overall balance sheet growth and stable margins which

reflected the actions taken on the management of liquidity and funding costs.

I am also pleased to report a significant decrease in our operating expenses of 19.0 per-cent year on year, in line with our strategy to drive efficiencies across the business, streamline processes and reduce costs. Consequently, the Bank reported a healthy consolidated cost of income ratio of 37.5 per-cent, down from 45.7 percent at FY 2016.

“As part of our strategy, we strengthened our balance sheet and made additional provisions on legacy assets, increasing pro-visioning by 33.8 percent year on year to QR1.70bn. Consoli-dated net profit was QR604m at FY 2017.

“Domestic Bank reported an increase of 4.7 percent in net interest income, while advances to customers grew by 14.5 per-cent and customer deposits were up 7.7 percent for the year ended 31st December 2017.

→ Continued from page 17Sheikh Jassim bin Jabor Al

Thani, Assistant Undersecretary for Consumer Protection at the Ministry of Economy and Com-merce, said: “The first edition of the exhibition represents a great initiative to strengthen the cooperation between local, regional and international pro-duction lines firms. The support of the Ministry to this exhibi-tion comes in line with the Ministry’s vision to strengthen the partnership between Gov-ernment and private sectors.”

Commenting on the bene-fits of the coveted expo, Khalid Al Mana (of QDB) added: “Qatar Self Sufficiency Exhibition, the first-of-its-kind initiative, pro-vides the best environment to encourage investment in sev-eral sectors in the State of Qatar, namely the manufactur-ing sector. This exhibition opens new opportunities for major

industries to showcase their lat-est solutions and services that answers the state’s diversifica-tion strategy.”

He also noted that QDB will continue to support local SMEs and strengthentheir capacity to contribute to the state’s eco-nomic sustainability. In addition, we remain commit-ted to activating the manufacturing sector and ele-vating SMEs to become the main provider for Qatar.

Sheikh Faisal bin Qassim Al Thani, Chairman of Qatari Busi-nessmen Association praised about the event, confirming that Qatar is now ready to welcome all projects that offer added value specially after the regu-lations and procedures announced by the Emir, H H Sheikh Tamim bin Hamad Al Thani and related to free zones and foreign investments where any foreign investor can invest 100 percent in Qatar.

→ Continued from page 17The annual award is con-

sidered one of the most prestigious in the banking and finance world, and recognizes leading trade finance provid-ers in 9 regions and 84 countries around the world..

On the corporate side, he said, the bank has done quite well in 2017.

The bank funded major projects in Qatar like Qatar Industrial Manufacturing Com-pany to develop its headquarters building.

The bank was also support-ive of Qatar General Electricity

and Water Corporation’s (Kah-ramaa) ambitious water conservation project.

The bank is playing a key role in the country’s financial inclusion programme by sup-porting SME sector.

The bank sees bigger opportunities in Qatar’s SME sector.

Doha Bank and QDB will work together to promote SMEs entrepreneurs, Dr Seetharaman said.

Qatar is going to do will in terms of economic perform-ance going forward. Doha Bank has showcased Qatar’s

immense investment potential in a series of global markets, during the blockade period.

The global markets that the bank showcased Qatar oppor-tunities included New York, Frankfurt, London Sydney, Sin-gapore and Toronto.

The bank is keen on show-casing Qatar as the best investment destination in more markets, going forward, he said.

“Qatar is going to do well in terms of economic perform-ance this year. We are seeing a great momentum in terms of oil price.We foresee a sustainable growth in 2018,” he added.

Qatar’s non-oil exports hit QR18.1bnTHE PENINSULA

DOHA: The total value of Qatar’s non-oil exports in 2017 reached QR18.1bn distributed to about 66 countries, according to the Qatar Chamber’s (QC) monthly report on private sector foreign trade.

The report, which was pre-pared based on certificates of origin issued by the Chamber’s Research & Studies Department and Member Affairs Department last December, pointed out that non-oil exports in December reached QR1.3bn compared to QR1.8bn in November, record-ing a decrease of 27.6 percent, and to QR1.5bn in December 2016, registering an decrease of 13 percent.

As many as 2687 certificates of origin were issued in the said month.

The report said that Qatar’s non-oil exports during Decem-ber were distributed to about 61 countries compared to 53 in November.

Countries receiving Qatar’s non-oil exports included 12 Arab countries and GCC, 13 European countries including Turkey, 14 Asian countries (excluding Arab countries), 19 African countries (excluding Arab countries), three countries of North and South Americas.

The report showed that despite the siege, there are an increase of countries which received Qatari commodities.

Sultanate of Oman was still Qatar’s top non-oil exports des-tination in December accounting for QR454.8m or 34.9 percent of the total exports. It was followed by Hong Kong with almost QR

196.9m or 15.1 percent and Tur-key with QR 107.3m or 8.2 percent. Germany came in fourth place with almost QR95.5m or 7.3 percent followed by Bangla-desh with QR 77.4m or 5.9 percent. China was in the sixth place followed by India, South Korea, Indonesia and Kuwait.

“It is clear that 88.5 percent of the total value of exports were received by the first ten coun-tries above mentioned,” the QC report said.

The report said that Asian countries as an economic bloc were top destinations of Qatari exports amounting to 38.68 per-cent of the total exports with QR502.9m. GCC come in the sec-ond place amounting to 36.9 percent of the total value with QR481.9m. Most of them were received by Oman.

European countries includ-ing Turkey come in the third place. They imported goods worth QR220m which represents 16.8 percent of the total non-oil exports. In the fourth place, Arab countries received QR68.1m or 5.2 percent of the total value. African Countries come in the

fifth place receiving QR20.5 or 1.6 percent. North America coun-tries received QR10.6m most of them went to the US.

Commenting on the report, Qatar Chamber Chairman Sheikh Khalifa bin Jassim Al Thani said that despite the siege imposed on the country for the seventh month, non-oil exports saw an increase month after month. This affirmed that Qatar has successfully managed to overcome its repercussions.

The surge in non-oil exports is emanated from the prudent policies and the wise leader-ship’s support to the private sector which plays a key role in the economic process and becomes a major mainstay of Qatar trade exchange with world countries, he noted.

Sheikh Khalifa praised the active contribution of local com-panies in the country’s outward trade movement as well as the sustained growth of their month-to-month exports.

QC’s director general Saleh bin Hamad Al Sharqi said that the Qatari private sector’s trade relations saw substantial growth.

There is is a great demand on the Qatari products in world markets. He said that the number of markets receiving Qatari products last year reached 66 countries which emphasized the quality of these products.

The value of non-oil exports will see further growth in the future, especially that various industrial projects have been accomplished in the country, he added.

The number of markets receiving Qatari products last year reached 66 countries which emphasized the quality of these products.

Doha bank unveils aggressive Asian expansion plans

Commercial Bank’s net profit grows by 20.4%

QDB’s project financing reaches QR2bn in 2017

Consolidated Net Interest Income increased 7.6% y-o-y to QR2.52bn.

Sharing data leads to better outcomes for property dealsTHE PENINSULA

DOHA: Propertyfinder.qa, a local real estate services provider, hosted an interactive session titled ‘The CEO Break-fast’ with a select group of the leaders of major real estate brokerages in Qatar.

On the agenda was discuss-ing a guiding set of best practices for the real estate industry, which provided a solid opportunity in service of that philosophy. Another is scheduled for April to continue the conversation.

The Doha-based real estate

leaders, during the discussion, agreed that sharing data leads to better outcomes for property transactions. Greater transpar-ency in the market also improves the working environ-ment for everyone: from the landlord to the buyer to the real estate executive.

“Transparency is key in this market to create investor con-fidence and it is something we should all strive to create when dealing with the government, agencies and brokers” said Adrian Camps, Country Direc-tor of Colliers International Qatar, who attended the

session. “In becoming a mature market, we need to exchange accurate transactional infor-mation securely, by working with other top companies, the G o v e r n m e n t a n d institutions”.

Over the past year, proper-tyfinder.qa has delivered over half a million leads to its cli-ents, and has grown its client base by 44 percent. It is cur-rently working to share its market insights with its client base.

Sam Youssef, Managing Partner of Better Homes, who also attended the event, said,

“Data is essentially the best way to gauge the market, and molds the way we create strategies for our businesses. However, for that to be successful, transpar-ency is key, and the information provided needs to be as accu-rate as possible”.

To that end, propertyfinder.qa is working on compiling the first edition of Propertyfinder Trends for its Qatar market, which will report price trends, consumer search patterns, and in-demand areas, among other key insights.

“It would be very interest-ing to see how the consumer

behaves online, and be able to view how specific demograph-ics spend time on the site, which will help us better understand how to best serve our valued clients,” said Jeffrey Asselstine, Managing Director of Nelson Park Property.

“Our business philosophy is a simple one: Propertyfinder is looking for a lifelong rela-tionship with our clients, and we get that by ensuring that there is a mutual benefit from our partnership,” said Paul Stewart-Smith, Chief Operat-ing Officer of Propertyfinder Group.

Commonwealth Bank names Matt Comyn as new CEOBLOOMBERG

SYDNEY: Commonwealth Bank of Australia named Matt Comyn (pictured) its new chief executive officer, replac-ing Ian Narev, who last year announced his departure in the wake of a money-launder-ing scandal.

Comyn, who is head of retail banking services, will start in the top job April 9, the bank said in a statement Mon-day. He joined Commonwealth Bank in 1999, leaving in 2010 to become CEO of Morgan Stanley’s wealth business in Australia.

Comyn,will be tasked with leading Australia’s largest bank through a wide-ranging inquiry into the the nation’s financial services industry, which starts next month, and its response to allegations it breached anti-money laun-dering and terrorism financing laws. “The board’s main pri-orities in selecting the new CEO were to identify the can-didate who will maintain the momentum in the business, and address the regulatory and reputational challenges and recognize evolving commu-nity expectations,” Chairman Catherine Livingstone said in the statement.

Single African air transport marketRwandan President Paul Kagame and Chairperson of the African Union (right) talks to Moussa Faki Mahamat, Chairperson of African Union Commission during the launch of the single African air transport market, at the African Union (AU) venue for the 30th Ordinary Session of the Assembly of Heads of State and Government of the African Union, in Addis Ababa, yesterday.

19TUESDAY 30 JANUARY 2018 BUSINESS

Ooredoo in partnership action to support SMEsTHE PENINSULA

DOHA: Ooredoo, one of the region’s leading ICT providers, announced yesterday a new joint initiative with Qatar’s biggest business players to support the end-to-end digital transforma-tion of small and medium-sized enterprises (SMEs).This joint initiative sees Ooredoo joining forces with QNB, the biggest bank in Qatar; Moore Stephens, a leading consultancy and provider of technology products and services; Smart Management IT Solutions, which has devel-oped the WallPost enterprise resource planning solution; and Ooredoo, to host the cloud solu-tions through the Ooredoo Data Centre.

As a result, Qatar’s organisa-tions will be able to gain best-in-class business operations serv-ices covering financing, advisory, and operational management.

Enterprise resource planning solutions are the foundation for SMEs to digitally transform, and in turn drive Qatar’s diversified economic growth and job creation.

Partners will encourage the adoption of WallPost, so organ-isations can make the right deci-sions at the right time.

Yousuf Abdulla Al Kubaisi, Chief Operating Officer, Ooredoo, said: “Ooredoo con-tinues to be Qatar’s leading busi-ness technology, with this part-nership with Smart Management IT Solutions delivering new levels of cloud-based business models.

Using the cloud, SMEs can

gain the same capabilities as large enterprises, save time and money on IT, and scale up their services for future growth.”

QNB will also offer training sessions to help SME customers in adopting the WallPost solution.

Yousef M. Al Neama, General Manager of Group Corporate and

Institutional Banking of QNB, said: “QNB is pleased to provide support to this partnership by providing training to our large SME customer base in the use of this new software.

QNB is always committed to supporting the development of the Qatari SME sector due to the importance it holds for the

development of our national economy and the future devel-opment of our country.

We will continue to be at the forefront for any partnerships or initiatives that serve this impor-tant sector, to support our coun-try’s future growth and pros-perity, and to help in the achievement of Qatar’s National Vision 2030.”

Qatar’s SMEs can easily adopt WallPost in a convenient and affordable Software-as-a-Service model.

SMEs pay as they use the cloud services, rather than having to invest in their own software and hardware.

Abdulaziz Alsulait (pictured)

i, Managing Partner, Smart Man-agement IT Solutions, said, “Soft-ware as a Service is an exciting new business model for Qatar’s SMEs, giving them access to modules using simplified solu-tions without massive in-house investment.

Qatar is a strong growth market for cloud solutions, allowing enterprises to effec-tively manage and operate their businesses, and freeing up IT staff to focus on innovation.”

WallPost ERP Solutions help SMEs to generate reports and access information anytime and anywhere and ensures that work is delivered accurately and in a timely manner.

With the modules and work flow mechanism that are inte-grated with each and every department, WallPost makes work easy, and most impor-tantly, the software solution ensures that all the data are safe and protected.

Sami Zaitoon, Managing Partner, Moore Stephens, said: “Moore Stephens Qatar is greatly involved in supporting the con-tinues development of SME sector through offering a wide range of tailored made profes-sional Assurance & Advisory services.

Yousuf Abdulla Al Kubaisi (second right), Chief Operating Officer, Ooredoo with other senior officials.

Nafta negotiators still divided REUTERS

MONTREAL: The United States, Canada and Mexico said they had made progress in the latest round of talks to renegotiate the North America Free Trade Agreement, although the Amer-ican representative said progress was still very slow.

Expectations are now that the talks to try and salvage the

$1.2 trillion free trade pact will continue but last well beyond the original March deadline as elections loom in Mexico.

“We finally began to discuss the core issues, so this round was a step forward. But we are pro-gressing very slowly,” said Robert Lighthizer, the US repre-sentative at the talks yesterday.

Heading into the sixth of

seven planned rounds of talks in Montreal last week, some offi-cials had feared the US might be prepared to pull the plug on the pact amid frustration over slow progress.

The mood lightened after Canada presented a series of suggested compromises to address the main US demands for reform.

“For the next round, we will

still have substantial challenges to overcome. Yet the progress made so far puts us on the right track to create landing zones to conclude the negotiation soon,” said Economy Minister Ildefonso Guajardo.

After previous rounds of Nafta talks, the countries have issued a joint statement but will not do so this time, said three sources close to the talks.

Keurig to take control of Dr Pepper in $18.7bn dealBLOOMBERG

BOSTON/LONDON: JAB Holding Co.’s audacious effort to build a food-and-beverage empire, which already includes Krispy Kreme Doughnuts and Caribou Coffee, has taken a surprise turn into soft drinks.

The investment firm’s Keurig Green Mountain Inc. business, known for its single-serve coffee brewers, agreed on Monday to take control of Dr Pepper Snapple Group Inc. The deal will pay $18.7bn in cash to shareholders and assemble a massive beverage distribution network in the US, giving JAB’s businesses even greater control over how Americans eat and drink.

Dr Pepper Snapple share-holders will get $103.75 a share in a special cash dividend and retain 13 percent of the com-bined business, the companies said. The dividend is about 9 percent above where shares of Plano, Texas-based Dr Pepper Snapple closed on Friday. Existing investors in Keurig Green Mountain will own 87 percent of the new entity.

The deal vaults JAB into competition with the likes of Coca-Cola Co. and PepsiCo Inc., bringing a stable of brands that includes 7Up lemon-lime soda,

A&W root beer and Mott’s apple juice. Keurig Dr Pepper, as the new company will be known, will have pro forma 2017 rev-enue of about $11bn.

Combining the two entities will let the new company cash in on consumer trends that have drinkers turning away from once-dominant colas, said Bloomberg Intelligence Analyst Ken Shea. Though Dr Pepper has its roots in traditional soft drinks, it has added fast-growing upstart beverages like Bai Brands.

“It’s a deal that makes a lot of strategic sense,” he said. “Once it gets going and they can deliver on some of the bold things they’re talking about here, this will be a really impor-tant benchmark that investors will use to compare Coke and Pepsi against.”

Dr Pepper climbed as much as 32 percent to $126.65 after the transaction was announced, marking the biggest intraday rally since the shares were listed in 2008. The stock had slipped 1.5 percent this year through the end of last week.

JAB, which is backed by the billionaire Reimann family, has been placing increasingly bold bets on food and drink busi-nesses. At the same time, it’s shifted away from fashion hold-

ings such as Jimmy Choo. A big selling point of the

deal is building a distribution network across the beverage industry. Keurig has relation-ships with e-commerce compa-nies and tech sellers, including Amazon.com Inc. and Best Buy Co., an area where Dr Pepper isn’t as strong. Dr Pepper Snapple, meanwhile, has ties to convenience stores, drugstores and beverage vendors.

“Combined, our nationwide distribution system will be unri-valed,” Keurig Chief Executive Officer Bob Gamgort said on a call with analysts.

That could boost market share for the new combined company in coffee and other soft drinks. Keurig was the fourth-largest coffee seller in the US in 2017, with 7.4 percent of the market, according to Euromon-itor International. Dr Pepper Snapple, meanwhile, was the third-largest soft-drink maker, with a 8.5 percent share.

The deal will be structured as a reverse merger. Dr Pepper Snapple will be renamed Keurig Dr Pepper at closing, and it will issue shares to Keurig Green Mountain’s stockholders to buy the company. As a result, Keurig Green Mountain’s investors will own 87 percent of Keurig Dr Pepper.

Ford’s Chariot bus service to launch in LondonLONDON: London approved Ford’s plans to operate its Chariot minibus services, yesterday, as the automaker expands its mobility service designed to tap into growing demand in cities among those wishing to make trips rather than buy cars.

Chariot will be able to operate its pre-bookable only

services in Britain’s capital city for a year on three routes and nine months on a fourth route on a trial basis.

Ford is trying to diversify into other modes of transpor-tation from vehicles sold to consumers as new competitors from Alphabet’s Google to Uber shake up the traditional auto-motive industry.

20 TUESDAY 30 JANUARY 2018BUSINESS

Dutch banks & services hit by cyber attacksFP

THE HAGUE: The top three banks in the Netherlands have been targeted in multiple cyber attacks over the past week, blocking access to websites and internet banking services, they said yesterday.

The Dutch Revenue Serv-ice was also briefly targeted yesterday by a similar attack, but services were quickly restored, a spokesman said.

The number one Dutch bank, ING, was hit by a so-called distributed denial of service (DDoS) attack on Sun-day evening while the eurozone nation’s third largest lender, ABN Amro, suffered three attacks over the weekend in a total of seven over the last week, Dutch media reported.

Rabobank, the country’s number two lender, saw its internet banking services go down on yesterday morning.

“We have been targeted by a DDoS attack since 9.10 am (0810 GMT) this morning (Mon-day) and our clients don’t have access or very little access to online banking,” Rabobank spokeswoman Margo van Wijg-erden said.

“We are working to resolve the problem as quickly as pos-sible,” she told AFP.

Also yesterday, the Dutch Revenue Services saw its

website go down for about 10 minutes due to an attack, spokesman Andre Karels said.

“Things are running as nor-mal and we are investigating the incident,” Karels told AFP.

ING, which has some eight million private clients, experi-enced an attack on Sunday evening, it said on its website.

“During the DDoS attack ING’s internet site was blasted with data traffic causing our servers to overload and which put pressure on the availability of online banking,” ING said, adding services had been restored.

ABN Amro experienced a similar attack but also said services were restored. It will “keep monitoring availability and is extra alert since the weekend’s attacks,” it said in a statement.

The banks all stressed that clients’ banking details were not compromised or leaked.

It is not the first time Dutch banks were targeted in a DDoS attack with central bank chief Klaas Knot telling a TV news programme Sunday there were “thousands of attacks a day” on his own institution. “I think these (recent) attacks are seri-ous, but our own website is being attacked thousands of times per day,” Knot told the Buitenhof talk show. “That is the reality in 2018,” he said.

German carmakers take another hit with diesel testingBLOOMBERG

MUNICH: Diesel’s reputation took another blow amid revela-tions that Germany’s auto industry sponsored tests that exposed humans as well as monkeys to the fuel’s exhaust fumes, which can cause respira-tory illness and cancer.

The study, supported by a lit-tle-known group founded by Volkswagen AG, Daimler AG and

BMW AG in 2007, had 25 people breathe in diesel exhaust at a clinic used by the University of Aachen, Stuttgarter Zeitung reported yesterday.

The story, citing annual reports from the European Research Group on Environment and Health in the Transport Sec-tor, or EUGT, which closed last year, followed a New York Times report earlier that the organiza-tion also conducted tests using

monkeys. Germany’s auto industry, which is still reeling from Volkswagen’s diesel-cheat-ing scandal where the company rigged emissions tests, distanced itself from the organization.

“We are appalled by the extent of the studies and their implementation,” Daimler said yesterday in an emailed state-ment, adding it didn’t have any influence over the study and promised an investigation.”We

condemn the experiments in the strongest terms.”

The revelations are another bombshell undermining diesel’s image. The technology remains a key profit driver for German automakers, even as demand gradually slips in Europe, the main market for the diesel mod-els. The reports also weaken the carmakers’ position in its efforts to counter criticism of the tech-nology as cities mull bans and

German politicians weigh more stringent upgrades to lower pol-lution levels.

In an additional twist, the VW Beetle model used in the test with animals was among the vehicles rigged to cheat on emis-sions tests, the New York Times reported. Volkswagen apolo-gized for the misconduct and lack of judgment of some indi-viduals, calling the trials a mistake.

PlayAGS Inc’s IPOPlayAGS Inc’s President and CEO David Lopez (centre) rings a ceremonial bell during his company’s IPO on the floor of the New York Stock Exchange (NYSE) in New York, the United States.

Japan raps Coincheck, orders broader checks after $530m theftREUTERS

TOKYO: Japanese authorities said yesterday they would inves-tigate all cryptocurrency exchanges in the country for security gaps and ordered Coin-check to lift its standards after hackers stole $530m worth of digital money from the Tokyo-based exchange in one of the world’s biggest cyber heists.

The theft highlights the vul-nerabilities in trading an asset that global policymakers are struggling to regulate and the broader risks for Japan as it aims to leverage the fintech industry to stimulate economic growth.

The Financial Services Agency (FSA) yesterday ordered improvements to operations at Coincheck, which on Friday sus-pended trading in all cryptocurrencies except bitcoin after hackers stole 58 billion yen ($534m) of NEM coins, among the most popular digital currencies in the world.

Coincheck said on Sunday it would return about 90 percent with internal funds, though it has yet to figure out how or when.

The NEM coins were stored in a “hot wallet” instead of the more secure “cold wallet”, which operates on platforms not directly connected to the inter-net, Coincheck said.

It also does not use an extra layer of security known as a multi-signature system. The hack has drawn into focus Japan’s approach to regulating crypto-

currency exchanges.Last year, it became the first

country to regulate exchanges at the national level - a move that won praise for boosting innova-tion and protecting consumers, and that contrasts sharply with crackdowns in South Korea and China.

The FSA said it ordered Coin-check to submit a report on the

hack and measures for prevent-ing a recurrence by February 13.

It added it would conduct hearings with other exchanges after their operators had run their own checks. If any prob-lems or weaknesses with security were found during the course of the hearings, the FSA would also conduct onsite inspections.

The regulator also said it has yet to confirm whether Coin-check had sufficient funds for the reimbursement.

But the regulator does not have any rules banning the use of “hot wallets” by exchanges, nor does it set requirements on how much should be kept in “cold wallets,” an FSA official said at a briefing.

In response to FSA’s order for improvements, Coincheck said in a statement that it would promptly strengthen its customer protection and governance, and develop its risk management systems.

Japan started to require cryptocurrency exchange oper-ators to register with the government only in April 2017, allowing pre-existing operators

such as Coincheck to continue offering services ahead of for-mal registration. The FSA has registered 16 cryptocurrency exchanges so far, and another 16 are still awaiting clearance.

Coincheck’s application was made in September.

“It’s been long said that cryptocurrencies are a solid sys-tem but cryptocurrency exchanges are not,” said Makoto Sakuma, research fellow at NLI Research Institute.

“This incident showed that the problem has not been solved at all. If Coincheck screws up its crisis management, that could deal a blow to the current cryptocurrency fever.”

NEM fell to $0.78 from $1.01 on Friday but recovered to $0.95 late on yesterdday afternoon, according to CoinMarketCap.

Crypto-currency related shares mostly rose in Tokyo, with GMO Internet, which offers cryptocurrency exchange serv-ices, gaining 5.7 pct. Exchange operators in Tokyo said the Coin-check hack will likely cause concerns over security to grow among consumers, potentially

pressuring the price of cryptocurrencies.

“I have to admit that all cryptocurrencies will now be tainted in their minds, so there may be a mid-term negative impact,” said Genki Oda, presi-dent of BitPoint Japan.

The Singapore-based NEM Foundation, which describes itself as a promoter of the tech-nology underlying the cryptocurrency, said it had a tracing system on the NEM blockchain and that it had “a full account” of all of Coincheck’s lost NEM coins.It added that the hacker had not moved any of the funds to any exchange or per-sonal accounts but that it had no way to return the stolen funds to its owners. In 2014, Tokyo-based Mt.Gox, which once handled 80 percent of the world’s bitcoin trades, filed for bankruptcy after losing around half a billion dol-lars worth of bitcoins.

Japan’s top financial diplo-mat said regulation of cryptocurrencies would likely be on the agenda at the G20 finance chiefs’ meeting in Argentina in March.

The Dutch Revenue Services saw its website go down for about 10 minutes due to an attack, yesterday.

All stressed that clients’ banking details were not

compromised

Robot invasion will widen UK’s north-south economic divideBLOOMBERG

LONDON: The increased use of automation in the UK could exacerbate the economic divide between the north and south of the country, accord-ing to a report by the Centre for Cities.

The think tank said that one-in-five existing jobs in British cities -- about 3.6 mil-lion in total -- could be displaced by 2030 because of automation and globalisation. Retail, customer service roles and warehouse jobs are among the most at risk.

The impact won’t be evenly distributed across geo-graphical locations either.

Around 18 percent of jobs are under threat in southern cit-ies, compared with a 23 percent average elsewhere in the country. It said the cities least exposed to losing jobs are also home to larger shares of high-skilled private-sector workers.

The most at risk are Mans-field, Sunderland and Wakefield, with 29 percent of jobs at risk. The report notes that weekly earnings here are lower than the national aver-age and residents voted in favor of Brexit by as much as 70 percent in the 2016 refer-endum on EU membership.

The lowest risks are seen in Oxford and Cambridge, at

13 percent, while London is at 16 percent. Earnings in all three are well above the national average.

For example, the Centre for Cities forecasts that almost half the job creation in Cam-bridge over the next decade will be in high-skilled areas. The equivalent figure in Mans-field and Sunderland is 10 percent.

“This growing reliance on low-skilled private-sector jobs means that the gulf in living standards and wages between struggling Northern and Mid-lands cities, and wealthier places in the south, will con-tinue to widen in the coming decades,” the think tank said.

Facebook makes privacy push ahead of strict EU lawREUTERS

BRUSSELS: Facebook said yesterday it was publishing its privacy principles for the first time and rolling out educational videos to help users control who has access to their information, as it prepares for the start of a tough new EU data protec-tion law.

The videos will show users how to manage the data that Facebook uses to show them ads, how to delete old posts, and what happens to the data when they delete their account, Erin Egan, chief privacy officer at Facebook, said in a blog post.

Facebook, which has more than 2 billion users worldwide, said it had never before published the princi-ples, which are its rules on how the company handles users’ information.

Yesterday’s announce-ments are a sign of its efforts to get ready before the Euro-pean Union’s General Data Protection Regulation (GDPR) enters into force on May 25, marking the biggest overhaul of personal data privacy rules since the birth of the internet.

Under GDPR, companies will be required to report data breaches within 72 hours, as well as to allow customers to export their data and delete it.

Facebook’s privacy prin-ciples, which are separate from the user terms and con-ditions that are agreed when someone opens an account, range from giving users con-trol of their privacy, to building privacy features into Facebook products from the outset, to users owning the information they share.

“We recognize that peo-ple use Facebook to connect, but not everyone wants to share everything with eve-ryone - including with us.It’s important that you have choices when it comes to how your data is used,” Egan wrote.

“We put products through rigorous data secu-rity testing.We also meet with regulators, legislators and privacy experts around the world to get input on our data practices and policies,” the blog post said.

A monitor shows various cryptocurrencies’ exchange rates against Japanese Yen including NEM coin (middle in the top) at ‘nem bar’, where customers can pay with NEM coins, in Tokyo, Japan, yesterday.

21TUESDAY 30 JANUARY 2018 BUSINESS

US consumer spending rises in DecemberREUTERS

WASHINGTON: US consumer spending rose solidly in December as demand for goods and services increased, but the gain came at the expense of savings, which dropped to a 10-year low in a troubling sign for future consumption and economic growth.

The Commerce Department said yesterday that consumer spending, which accounts for more than two-thirds of US eco-nomic activity, increased 0.4 percent last month after an upwardly revised 0.8 percent increase in November. House-holds continued to dip into sav-ings to maintain spending amid sluggish income growth.

Savings are now at levels last seen in December 2007, when the economy slipped into reces-sion, and are a red flag for both consumer spending and eco-nomic growth.

The impact of low savings on consumer spending could, how-ever, be temporarily offset by income tax cuts which came into effect in January. Savings fell to $351.6bn in December from $365.1bn in the prior month. They declined to $485.8bn in 2017, the lowest level since 2007, from $680.6bn in 2016.

The saving rate dropped to 2.4 percent, the lowest level since September 2005, from 2.5 per-cent in November. It decreased to 3.4 percent in 2017, the lowest level since 2007, from 4.9 per-

cent in 2016.Personal income rose 0.4

percent last month after advancing 0.3 percent in November. Wages increased 0.5 percent last month. Income rose 3.1 percent in 2017, picking up from 2.4 percent in 2016.

Economists polled by

Reuters had forecast consumer spending increasing 0.4 percent in December after a previously reported 0.6 percent rise in November.

When adjusted for inflation, consumer spending rose 0.3 per-cent in December.

The US dollar was trading

higher against a basket of cur-rencies. Prices of US Treasuries and US stock index futures were trading lower.

The data were included in the advance fourth-quarter gross domestic product report pub-lished on Friday.

Consumer spending accel-erated at a 3.8 percent annual-ized rate in the fourth quarter, the fastest in three years, after rising at a 2.2 pace in the third quarter.

Robust consumer spending helped to offset the drag from trade and inventories on the economy, which grew at a 2.6 percent rate in the fourth quarter.

GDP increased at a 3.2 per-cent pace in the third quarter.

Last month, spending on long-lasting goods, such as motor vehicles, increased 0.7 percent.

Outlays on services rose 0.5 percent, reflecting rising demand for utilities.

Monthly inflation ticked up in December.

The Federal Reserve’s pre-ferred inflation measure, the personal consumption expendi-tures (PCE) price index excluding food and energy, rose 0.2 per-cent in December after a 0.1 per-cent gain in November. The so-called core PCE increased 1.5 percent in the 12 months through December after a similar rise in November. The core PCE has missed the Fed’s 2 percent target since mid-2012.

Savings are now at levels last seen inDecember 2007, when the economy slipped into reces-sion, and are a red flag for both consumer spending and economic growth.

Savings dropped to a 10-year low in a

troubling sign for future consumption

and economic growth.

EU says would react ‘swiftly’ to any Trump trade curbsAFP

BRUSSELS: The European Union warned yesterday it would react “swiftly and appro-priately” if Washington imposed trade curbs, after US President Donald Trump accused the bloc of trading “very unfairly” and hinted at such action.

“The European Union stands ready to react swiftly and appropriately in case our exports are affected by any restrictive trade measures from the United States,” European Commission spokesman Mar-garitis Schinas (pictured) told reporters.

Trump told Britain’s ITV channel that the EU has treated the US “very unfairly when it came to trade” and that his many problems with Brussels could “morph into something very big”.

In reaction to the Trump interview, Schinas said: “For us, trade policy is not a zero-sum game, it is not about winners and losers. We here in the Euro-pean Union believe that trade can and should be win-win.”

Schinas added: “We also believe that while trade has to be open and fair it has also to be rules based.”

Trump delivered the warning during a wide-ranging interview last Thursday on the sidelines of the World Eco-nomic Forum in Davos, where

he took his “America First” agenda to the global business elite.

In a speech Friday he told the forum that his mantra “does not mean America alone” and hinted that the US could rejoin the Trans-Pacific Partnership, a deal he withdrew from a year ago. But earlier this month the Trump Administration imposed steep tariffs on imported washing machines and solar panels.

Last year it vowed to impose nearly 300 percent punitive tariffs on airplanes manufactured by Canada’s Bombardier.

A bipartisan US trade panel blocked that decision on Friday but the dispute, which has inflamed relations with Ottawa -- and to a lesser degree Britain, where Bombardier has a large workforce -- could be a har-binger for the EU.

Sanofi wins big in battle for nano-drug makerAFP

PARIS: France’s Sanofi announced yesterday that it had reached a deal to acquire Belgian biotech firm Ablynx that values the firm at 3.9bn euros ($4.8bn), beating out Danish rival Novo Nordisk for the nano-drug maker.

Novo Nordisk earlier this month made a ¤2.6bn offer to buy the firm that is devel-oping nano-drugs to treat blood disorders, which Ablynx rejected as too little.

Chief executive Olivier Brandicourt (pictured) said by acquiring Ablynx that Sanofi will be expanding its portfolio of drugs that are close to market and “strengthening our platform for growth in rare blood disorders.”

Ablynx specialises in the development of nanobodies: small fragments of antibodies that like larger antibodies can bind onto the antigens that cause an immune system response.

One of its nanobodies furthest along in develop-ment, caplacizumab, aims to treat a certain type of blood clot.

Ablynx’s chief executive Edwin Moses said “we believe Sanofi’s global infrastructure, commitment to innovation and commercial capabilities will accelerate our ability to deliver our pipeline” of prod-ucts under development to the market.

Sanofi said that while it expected the addition of Ablynx would increase the long-term value of the com-pany to shareholders by adding to its pipeline of drugs under development, research expenses would mean no increased earnings per share this year or in 2019.

The purchase of Ablynx is the second major acquisi-tion by Sanofi this month, after announcing last week it would buy US biotech com-pany Bioverativ, which spe-cialises in treatments for hae-mophilia and rare blood disorders, for $11.6bn (9.4bneuros).

Sanofi’s shares dipped 0.2 percent in a Paris market up slightly overall.

Philippines to phase out jeepneysREUTERS

MANILA: Jeepneys, the flam-boyant passenger trucks of the Philippines, are nearing the end of their reign as the “Kings of the Road”, but they’re not going down without a fight.

Government moves to over-haul outdated public transport, making it safer and more envi-ronment friendly, will put the brakes on a mode of travel that has long been the surest and cheapest option in a country of 105 million people.

But the operators and drivers of the 200,000 jeepneys that have plied the nation’s roads and highways for decades are defiant, denouncing moves to oust them as “anti-poor” and a threat to their livelihoods.

“It is a big hassle to us poor

people since we are the ones suffering,” said one jeepney driver, upset after traffic police pulled him over because his vehicle was belching black smoke.

Jeepneys have evolved from surplus army jeeps left behind by the US military after World War Two to become brightly-painted vehicles festooned with religious slogans, horoscope signs or family names.

At a cost of 8 pesos ($0.16) for a journey of 4 km (2.5 miles) in Manila, the capital, they are easily affordable, but the ride is far from comfortable.

A typical jeepney packs in 10 to 16 commuters, sitting knee-to-knee on twin benches, and lacks air-conditioning or windows to shield occupants from the heat, rain and choking

fumes. In Metro Manila, one of Asia’s most gridlocked mega-cities, passengers can sit there for hours.

There are no seatbelts and commuters have only ceiling bars to keep from being thrown off their seats as drivers race to beat traffic lights or edge out competitors for waiting passengers.

The government wants to force unsound and shabby jeep-neys off the streets in favour of bigger, cleaner, safer and more modern replacements, some electric, others using cleaner fuel. But drivers complain that the newer units, priced around 1.8 million pesos ($35,327), are prohibitively expensive, and government subsidies are paltry.

Some fear vested interests are at play.

A row of jeepneys is seen plying on a road in Quezon City, Metro Manila, Philippines, in this file picture.

ECB yet to meet inflation goal: Peter PraetBLOOMBERG

FRANKFURT: European Central Bank chief economist Peter Praet (pictured) pushed back against the idea that the institu-tion is close to deciding to end its bond-buying program, saying there’s still a way to go before inflation is back on track.

Praet said the ECB is “some distance” from meeting the three criteria that would show asset purchases have done their job. His comments come amid dif-ferences within the Governing Council over how fast to move toward the end of crisis-era stimulus, with Dutch central banker Klaas Knot saying on Sunday that the program has done all that can realistically be expected and should end as soon as possible after September.

With the economy growing strongly, ECB President Mario Draghi acknowledged last week that policy makers are more confident that inflation will return to their target. Yet he also warned that price growth is still dependent on stimulus, and that officials haven’t started a proper discussion on ending asset pur-chases, which are set to run until

at least September at a monthly pace of ¤30bn ($37bn).

“The transition toward a normalization will begin once we have established that there is a sustained adjustment in the path of inflation,” Praet said in Brussels, in his first speech of the year. “Despite the strong cyclical momentum, domestic price pressures remain subdued, as do measures of underlying inflation.”

Some officials prefer delaying any significant change in their policy language until

June as they wait for more signs that inflation is picking up, according to people familiar with the matter. Others want to start a series of small tweaks in their policy wording at the next meeting on March 8.

One risk is the strength of the euro, which the Governing Council said last week is a “source of uncertainty” that needs to be monitored for its impact on inflation.

Data due this week won’t make the decision any easier. They will probably confirm the euro-area economy expanded last year at the fastest pace in a decade, and economic confi-dence in January was the highest since the currency bloc’s early days. Yet inflation will probably slow in January to a six-month low of 1.3 percent.

Benoit Coeure, one of Pra-et’s colleagues on the six-member Executive Board that proposes policy, said last week that a tipping point may be near. Speaking on a panel session at the World Economic Forum in Davos, he said the euro area is at a stage “where we are starting to see wages ticking up in a very tentative way, also core

inflation ticking up in a very lim-ited way.”

Knot, asked about the bond-buying programme in an inter-view, said “we don’t have to communicate yet that it will be over after September, but I think that’s where we’re headed.”

Still, Praet insisted that the ECB must be patient and per-sistent in its policy until it’s com-fortable with taking the next step to pare back stimulus. “Mone-tary policy will evolve in a data-dependent and time-consistent manner,” he said. “Once the Governing Council judges that the three criteria for sustained adjustment have been met, net asset purchases will expire, in line with our guidance.”

Praet said the ECB is “some distance” from meeting the three criteria that would show asset purchases have done their job.

China’s Weibo social media site suspends portals after reprimandCHINA’S Sina Weibo was

ordered to move several portals

offline for a week after spreading

obscene and wrongly oriented

content, the internet watch-

dog said.

The government has been

tightening controls over inter-

net content as part of efforts

to maintain “social stability”,

taking on “vulgar” and porno-

graphic content as well as the

unauthorized dissemination of

news. “Content of wrong public

opinion orientation, obscenity

and ethnic discrimination con-

tinued to spread on Sina Weibo,”

the Beijing office of the Cyber-

space Administration of China said

in a statement late on Saturday.

In a separate statement,

Weibo said it accepted the crit-

icism and was suspending key

portals such as its hot search site

and portal on celebrities and their

personal lives for a week. China

shut down as many as 128,000

websites that contained obscene

and other “harmful” information

in 2017, state media has reported.

22 TUESDAY 30 JANUARY 2018BUSINESS

QATAR STOCK EXCHANGE

QE Index 9,450.07 0.41 %

QE Total Return Index 15,847.21 0.41 %

QE Al Rayan Islamic Index - Price 2,418.77 0.21 %

QE Al Rayan Islamic Index 3,728.03 0.21 %

QE All Share Index 2,662.88 0.79 %

QE All Share Banks &

Financial Services 2,915.84 1.11 %

QE All Share Industrials 2,944.65 0.11 %

QE All Share Transportation 2,014.20 2.02 %

QE All Share Real Estate 2,018.01 2.00 %

QE All Share Insurance 3,533.97 0.23 %

QE All Share Telecoms 1,136.31 0.99 %

QE All Share Consumer

Goods & Services 5,569.17 0.17 %

QE INDICES SUMMARY QE MARKET SUMMARY COMPARISON WORLD STOCK INDICES

GOLD AND SILVER

29-01-2018Index 9,450.07

Change 38.54

% 0.41

YTD% 10.87

Volume 6,308,400

Value (QAR) 170,398,472.77

Trades 3,315

Up 19 | Down 18 | Unchanged 128-01-2018Index 9,411.53

Change 48.08

% 0.51

YTD% 10.42

Volume 8,906,041

Value (QAR) 200,176,285.00

Trades 3,154

EXCHANGE RATE

GOLD QR159.566 per grammeSILVER QR2.0202 per gramme

Index Day’s Close Pt Chg % Chg Year High Year Low

All Ordinaries 6164.7 -4.1 -0.07 6256.5 6106.2

Cac 40 Index/D 5513.51 18.35 0.33 5567.03 5258.66

Dj Indu Average 26252.12 41.31 0.16 26392.8 19784.77

Hang Seng Inde/D 32654.45 -304.24 -0.92 33018.71 30028.29

Iseq Overall/D 7062.21 -94.19 -1.32 7257.41 7016.09

Kse 100 Inx/D 44810.21 -253 -0.56 45494.52 40169.62

S&P 500 Index/D 2837.54 -1.59 -0.056003 2842.24 2682.36

Currency Buying SellingUS$ QR 3.6305 QR 3.6500

UK QR 5.1650 QR 5.2382

Euro QR 4.4645 QR 4.5266

CA$ QR 2.9245 QR 2.9817

Swiss Fr QR 3.8445 QR 3.8984

Yen QR 0.03295 QR 0.03359

Aus$ QR 2.9136 QR 2.9709

Ind Re QR 0.0567 QR 0.0578

Pak Re QR 0.0325 QR 0.0333

Peso QR 0.0710 QR 0.0724

SL Re QR 0.0235 QR 0.0239

Taka QR 0.0433 QR 0.0442

Nep Re QR 0.0354 QR 0.0361

SA Rand QR 0.3011 QR 0.3095

INTERNATIONAL MARKETS - A LIST OF SHARES FROM THE WORLD

Aarti Drugs-B/D 677 -9.2 1347

Aban Offs-A/D 233.3 0 353168

Acc Ltd-A/D 1727.45 -17.4 11952

Ador Welding-B/D 515.5 -10.05 3091

Aegis Logis-A/D 278.65 -2.05 17296

Alembic-B/D 67.3 -2.3 645023

Alkyl Amines-B/D 765 -13.85 1448

Alok Indus-T/D 3.64 0.01 714300

Apollo Tyre-A/D 263 -4.25 48462

Asahi I Glass-/D 360.05 -2.15 29353

Ashok Leyland-/D 122.4 -0.9 621269

Ballarpur In-B/D 15.5 -0.2 295757

Banaras Bead-T/D 71.55 -0.95 1111

Bata India-A/D 706.6 -18 26266

Beml Ltd-A/D 1481.8 -24.4 20267

Bhansali Eng-B/D 183.75 1.2 176452

Bharat Bijle-B/D 1485.85 104.1 126432

Bharat Ele-A/D 177.15 3.45 3860996

Bharat Heavy-A/D 103.25 -0.95 1239447

Bharatgears-B/D 204.15 -4 11951

Bhartiya Int-B/D 483.1 -7.8 7106

Bom.Burmah-X/D 1507.55 -42.15 23736

Bombay Dyeing-/D 233.35 -8.1 579184

Camph.& All-X/D 1190 -13.25 3947

Canfin Homes-A/D 443.05 0.15 96065

Caprihans-X/D 103.25 -2.55 8731

Castrol India-/D 183.05 -3.9 574860

Century Enka-B/D 336.15 -5 8065

Century Text-A/D 1403.2 -16.45 39311

Chambal Fert-A/D 154.35 -1.1 92567

Chola Invest-A/D 1320 11.9 8038

Chowgule St-Xt/D 16 -0.45 4265

Cimmco-T/D 117 -5.4 3282

Cipla-A/D 621.3 3.65 583931

City Union Bk-/D 172.35 -0.9 30224

Colgate-A/D 1147.5 -5.05 12759

Container Cor-/D 1440.35 -24.15 30852

Dai-X/D 424 -0.8 1108

Dcm Financia-B/D 3.5 0.15 5900

Dcm Shram Ind-/D 269.75 3.6 56568

Dhampur Sugar-/D 193.6 6.4 102155

Dr. Reddy-A/D 2504 -57.85 142150

E I H-B/D 197.15 0.15 12488

E.I.D Parry-A/D 342.5 -0.9 21730

Eicher Motor-A/D 26524.95 124.1 20821

Electrosteel-B/D 34.9 0.55 51170

Emco-B/D 21.2 -0.7 66845

Escorts-A/D 835.45 14.15 153431

Eveready Indu-/D 432.4 -0.45 7339

F D C-B/D 240 1.35 5289

Federal Bank-A/D 101.15 -2.05 550397

Ferro Alloys-X/D 12.65 -0.15 74911

Finolex-A/D 649.5 -2.4 3910

Forbes-B/D 4204.95 -69.45 2346

Gail-A/D 494.5 9.9 234006

Gammon India-T/D 6.5 -0.26 26234

Garden P -B/D 41 -1.25 42262

Godfrey Phil-A/D 966 -15 9335

Goodricke-X/D 459.9 -12.4 14106

Goodyear I -B/D 1122 -14.55 6620

Hcl Infosys-A/D 57.6 -1.15 444259

Him.Fut.Comm-A/D 30.65 -0.2 1130522

Himat Seide-X/D 377 5 14736

Hind Motors-T/D 9.5 -0.13 93126

Hind Org Chem-/D 28.85 1.35 50795

Hind Unilever-/D 1370 4 36157

Hind.Petrol-A/D 384.1 -4.6 229492

Hindalco-A/D 258.55 -0.9 619335

Hous Dev Fin-A/D 1902.55 -5.4 478469

Idbi-A/D 65 -0.45 3557358

Ifb Ind.Ltd.-B/D 1332 -44.05 1572

Ifci Ltd-A/D 30.75 -0.65 1035303

India Cement-A/D 174.85 -3.75 404387

India Glycol-B/D 552.5 42.15 245415

Indian Hotel-A/D 149.55 -1.7 184629

Indo-A/D 107 -4.1 566387

Indusind-A/D 1729 10.8 64260

J.B.Chemical-B/D 318.5 -7.85 4328

Jagson Phar-B/D 35.85 -0.5 2927

Jamnaauto-B/D 75.25 0.25 428164

Jbf Indu-B/D 198.2 -2.6 8924

Jct Ltd-X/D 3.83 0.01 221600

Jenson&Nich.-T/D 6.38 0.12 10450

Jindal Drill-B/D 206.95 -2.8 22826

Jktyre&Ind-A/D 179.35 2.25 259345

Jmc Projects-B/D 576 -8.9 4780

Kabra Extr-B/D 128.45 -1.25 16944

Kajaria Cer-A/D 720 9.9 28751

Kakatiya Cem-B/D 382 4.55 8459

Kalpat Power-B/D 476.25 -13.1 20858

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LONDON

Paul Romer’s departure last week as chief economist of the World Bank isn’t an event about just one man and his former job. His exit was undoubtedly influenced by

individual factors, but it also illustrates broad challenges for the Bank as an institution.

Romer is, to put it bluntly, a contentious man. A celebrated researcher of economic growth, he has spent years vigorously attacking the ideas of his doctoral adviser, macroeconomist Robert Lucas, and the very field of macroeconomics itself. At the World Bank, his tenure has been marked by heated disputes, including one over how many times the word “and” should be used in official communications.

That sort of approach can be very useful in an academic setting. Indeed, many of Romer’s criticisms of macroeconomics were truths that others in the field had been afraid to speak (though I’m not so sure about his grammatical advice). But when it comes to navigating the complex bureaucracy of an institution like the World Bank, perfectionism, bluntness and prickly precision are not necessarily the most

endearing traits. But the bigger question

concerns the Bank itself. The immediate cause of Romer’s departure probably had to do with a public clash over the widely cited Ease of Doing Business rankings. This index, which the World Bank updates frequently, is intended to measure how easy it is to start a business in a particular country.

An accommodating business environment is assumed -- both by the Bank and by many economists -- to be a good thing. It’s believed

to result in more creative destruction -- the constant churning of industries and businesses that improves the economy through competition that eliminates inefficient producers. It also reduces monopoly power, by making it easier for new companies to enter a market and compete.

That’s the abstract theory, anyway. In reality, the ease of doing business is hard to measure -- the Bank’s criteria might not capture the factors that are most important in encouraging business dynamism, or the rankings might weight the factors incorrectly. Rich countries tend to be ranked higher, but this might just be because countries make it easier to do business once they get rich.

Romer made headlines earlier this month when, speaking to reporters from the Wall Street Journal, he accused the Bank of changing its rankings unfairly. Romer noticed that changes in the factors used to construct the index had the effect of raising Chile’s ranking under conservative governments and lowering it under socialist ones. Romer later clarified that he didn’t mean to assert that politics was a factor in the Bank’s decisions, but nevertheless the damage to the reputation of the rankings, and of the Bank itself, could be long-lasting. Though Romer’s tenure as chief economist had been marked by many clashes, this battle was probably the last straw.

Political motivations or no, however, the overall usefulness of the Ease of Doing Business rankings is highly questionable. Many free-market enthusiasts, such as John Cochrane of the Hoover Institution, believe that if countries up their position in the World Bank’s rankings, growth will follow as a matter of course. But the evidence says otherwise.

World Bank searching for purpose in life

Canada emerging as the next frontier for shale oil

NOAH SMITHBLOOMBERG

NIA WILLIAMS REUTERS

THE revolution in US shale oil has battered Canada’s energy industry in recent years, ending two decades of rapid expansion

and job creation in the nation’s vast oil sands.

Now Canada is looking to its own shale fields to repair the economic damage.

Canadian producers and global oil majors are increasingly exploring the Duvernay and Montney formations, which they say could rival the most prolific US shale fields.

Canada is the first country outside the United States to see large-scale development of shale resources, which already account for 8 percent of total Canadian oil output.

China, Russia and Argentina also have ample shale reserves but have yet to overcome the obstacles to full commercial development.

Canada, by contrast, offers many of the same advantages that allowed oil firms to launch the shale revolution in the United States: numerous private energy firms with appetite for risk; deep capital markets; infrastructure to transport oil; low population in regions that contain shale reserves; and plentiful water to pump into shale wells.

Together, the Duvernay and Montney formations in Canada hold marketable resources estimated at 500 trillion cubic feet of natural gas, 20 billion barrels of natural gas liquids and 4.5 billion barrels of oil, according to the National Energy Board, a Canadian regulator.

“The Montney is thought to have about half the recoverable resources of the whole oil sands region, so it’s formidable,” Marty Proctor, chief executive of Calgary-based Seven Generations Energy, told Reuters in an interview.

Canada’s shale output stands at about 335,000 bpd, according to energy consultants Wood Mackenzie, which forecasts output should grow to 420,000 bpd in a decade.

The pace of output growth could quicken and the estimated size of the resources could rise as activity picks up and knowledge of the fields improves, according to the Canadian Association of Petroleum Producers.

Seven Generations and Encana Corp, also based in

Calgary, are among leading producers developing the two regions.

Global majors including Royal Dutch Shell and ConocoPhillips - who pulled back from the oil sands last year - are also developing Canadian shale assets.

Chevron Corp announced its first ever Canadian shale development in the Duvernay in November.

Spokesman Leif Sollid called it one of the most promising shale opportunities in North America.

ConocoPhillips sees potential for the Montney to deliver significant production and cash flow to the company, executive vice president of production drilling and projects Al Hirshberg said in November.

Shell will invest more money this year in the Duvernay than any other shale field except the Permian Basin in West Texas, the most productive US shale play, spokesman Cameron Yost said.

“We may learn something in the Permian that becomes applicable in the Montney, and vice versa,” Yost said.

The oil sands boom dates back two decades, when improved technology, rising crude prices and fears of global oil shortages sparked a rush to develop the world’s third-largest reserves.

But in the last five years, much of that investment has migrated south as US shale firms pioneered new drilling techniques and flooded global oil markets with cheaper-to-produce crude.

The oil sands currently account for two-thirds of Canada’s 4.2 million barrels per day of crude.

They will continue to contribute heavily to Canada’s energy output because oil sands projects, once built, produce for decades.

But the era of oil sands mega-projects will likely end with Suncor Energy’s 190,000 barrel-per-day Fort Hills mining project, which started producing this month.

Canadian energy officials are now counting on shale, also known as “tight” oil, to lure new investment.

“Increasingly we are going to see light tight oil and liquids-rich natural

gas forming a key part of Alberta’s energy future,” said Margaret McCuaig-Boyd, Energy Minister for the province where the oil sands and much of the nation’s shale reserves are located.

Oil sands development drove Alberta’s economic growth at a rate of 5.5 percent annually between 2010 and 2014, about twice the national rate.

But the oil price crash in 2014 sent the region into a recession and has since prompted producers to scrap at least $32bn in planned projects.

Oil sands capital spending fell for a third straight year in 2017 while other oil and gas investment rose 40 percent from 2016 to about C$31bn, according to the Canadian Association of Petroleum Producers.

Spending outside the oil sands is expected to grow again this year to C$33bn, nearly three times the amount predicted for oil sands investment.

Hydraulic fracturing of shale oil and gas can yield quicker returns on smaller investments than extracting tar-like bitumen from the oil sands.

Shale production is also less carbon-intensive, addressing a major concern among international investors reluctant to finance what environmental groups deride as the “tar sands”.

“The last decade has been dominated by conversations about the oil sands, and people have maybe missed the opportunities” in shale fields, Encana Chief Executive Doug Suttles told a conference in British Columbia in November.”All these things have a much lower carbon footprint than the average barrel refined today.”

The Duvernay in central Alberta is a shale play, while the Montney, straddling northern Alberta and British Columbia, is technically a formation of siltstone, a more porous rock.

Drilling and extraction techniques are the same, however, and many in the industry use the term shale for both.

Drillers face challenges in both fields because of their distance from key markets, but the high potential of their reserves is unquestioned.

The Duvernay is comparable to the Eagle Ford shale field in South Texas.

RUSSIAN bonds slid, with some yields climbing to the highest level this year,

and UBS Group AG recommended selling the ruble before a US Treasury report gauging the impact of possible sanctions on the nation’s sovereign debt.

The report has been the biggest headwind for investments in Russia’s $120bn ruble debt market since it was reluctantly commissioned by Donald Trump in August as allegations of Kremlin election meddling swirled. While the report could serve as a basis for what M&G Ltd. has called the “nuclear option” for US-Russia relations, most investors attracted by Russia’s outsized real rates don’t see debt

sanctions as a base case scenario. “During our trip to Moscow at the beginning of the year, nearly every single meeting contained some discussion of the potential expansion of US sanctions in the nearest future,” Vladimir Osakovskiy, an analyst at Bank of America Merrill Lynch said in a research report last week. But “the risk of an escalation of sanctions is currently perceived as low,” he said.

The yield on Eurobonds maturing in June 2027 increased 7 basis points to 3.94 percent, the highest level since December 4. Ruble bonds also slid, with the yield on 10-year notes climbing 1 basis point to 7.31 percent. The cost of insuring Russian debt through five-year credit-default swaps rose for a second day, while the ruble was little changed.

UBS Strategists Jonas David and Michael Bolliger

shifted their ruble recommendation from overweight to neutral on Monday, citing the sanctions report which they said could trigger “some market volatility.” They also noted that the currency could be hurt by foreign currency purchases by the finance ministry and a correction in oil prices.

One reason Trump’s administration may be reluctant to advise imposing restrictions is that such a move would hurt US investors who have significant holdings in Russian debt. BlackRock Inc, Stone Harbor Investment Partners and JPMorgan Chase & Co are the three biggest holders of ruble bonds with investments totalling about $4.9bn, according to data compiled by Bloomberg.

“This report is likely to be driven by political considerations as much as

policy goals,” Otilia Dhand, an analyst at Teneo Intelligence said in a report last week. “The Treasury may conclude that sanctioning Russian government securities would be too damaging politically to the US-Russia relationship as well as to US investors and businesses.”

While economists say the potential penalties could hurt, Russian officials have sought to downplay the possible fallout. Foreign investors, who hold about a third of Russia’s local government bonds, can easily be replaced by local buyers in the event of sanctions, central bank Governor Elvira Nabiullina said in November. A month later she said the lender could purchase bonds itself to limit damage.

As oil prices climbed last year, yields slipped below levels seen before Russia’s 2014 annexation of the Crimean

peninsula triggered an initial wave of international sanctions. The global hunger for higher returns eclipsed the threat of new penalties as ruble-denominated state debt handed investors 20 percent in dollar terms in 2017, among the best results in emerging markets.

A mild report could put Russian bond markets in the clear for the next leg of the rally. Moody’s Investors Service raised its outlook for Russia to positive from stable on Thursday, raising the prospect for an upgrade out of junk if the sanctions threat is removed. S&P Global Ratings also rates Russia one notch below investment grade and is due to review its assessment next month. A separate Treasury report also due today will include a list of Kremlin-connected businessmen, which is expected to amount to a blacklist of Russia’s elite.

Russian bonds retreat before long-awaited US sanctions reportKSENIA GALOUCHKOBLOOMBERG

Romer made headlines earlier this month when, speaking to reporters from the Wall Street Journal, he accused the Bank of changing its rankings unfairly.

Together, the Duvernay and Montney formations in Canada hold marketable resources estimated at 500 trillion cubic feet of natural gas, 20 billion barrels of natural gas liquids and 4.5 billion barrels of oil.

The report has been the biggest headwind for investments in Russia’s $120bn ruble debt market since it was reluctantly commissioned by Donald Trump in August.

23TUESDAY 30 JANUARY 2018 BUSINESS

Four rigs can be seen drilling at the Super Pad in Seven Generations Energy’s Kakwa River Project in northwest Alberta, Canada in this file photo.

TOKYO: The British presence in the European Union is over and Japanese businesses should be aware of the consequences, France’s Foreign Affairs Minister said.

Jean-Yves Le Drian was responding to a question about Brexit on the final day of a visit to Japan, during which he met with business leaders.

Prime Minister Shinzo Abe was a vocal opponent of the UK’s exit from the bloc and has repeat-edly sought reassurance about its effects on Japanese companies operating in Britain, who include giant car makers Nissan and Honda.

“The message is clear: first of all, the presence of the UK in the EU is finished,” Le Drian said in Tokyo Monday.”Japanese compa-nies must become aware of the consequences.”

A “divorce” is being negotiated and the UK won’t be an enemy, but the rules governing its ties to the EU will be less favorable than before, Le Drian said. “They won’t get preferential treatment,” he added.

His comments came amid a fresh bout of infighting over Brexit in UK.

Le Drian, who held a meeting with his counterpart Taro Kono on Saturday, said he would like France to welcome Japanese com-panies as much as possible.

“It’s up to Japanese businesses to assess their interests and it’s up to us to say, yes it’s over with the UK and this is what we will do to welcome you.”

Approximately 1,000 Japanese companies employ about 160,000 people in Britain, with a cumula-tive investment of about £60bn ($85bn), Japanese Ambassador Koji Tsuruoka told the CBI last year.

24 TUESDAY 30 JANUARY 2018

INsightback to BUSINESS

CAPITALCOMMENT

The wireless industry agrees that winning

the race to 5G is a national priority. Attwell Baker

CTIA, President & CEO.

Market Talk

Swiss watchmakers’ new pitchGENEVA: A plastic quartz watch can tell the time more accurately than a Swiss luxury timepiece costing as much as a car or even a house, but value and function-ality have never been selling points.

That’s starting to change as a new breed of customers demand more for their money.

Brands like Richemont’s Vacheron Constantin and Offi-cine Panerai are introducing new models that undercut their traditional pricing.

Some, like Baume & Mercier, are upgrading features or man-ufacturing techniques.

Others, such as Audemars Piguet, have begun reselling their own products, so that fans can buy a used version at a frac-tion of the $15,000-and-up new cost.

It’s a seismic shift for Swit-zerland’s watchmakers, holed up for centuries in the mountains near Geneva, who used to rely on an aura of exclusivity to fuel demand.

Then came a four-year sales slump deepened by an anticor-ruption crackdown in China and the rise of the smartwatch.

After Apple Inc.dethroned Rolex as the

world’s biggest watchmaker last year, the $50bn industry faced up to the new reality.

“People won’t just buy a watch because it’s Swiss,” said Ulysse Nardin Chief Executive Officer Patrick Pruniaux.”We shouldn’t bet on that.”

The new thinking was on display this month at a trade show in Geneva.

Brands moved away from their competition in past years to add ever-more-intricate and expensive mechanisms like per-petual calendars and tourbillons, which counter the effects of gravity but whose usefulness is debated.

Instead, watchmakers looked up from their loupes to talk about listening to customers.

Take Baume & Mercier, which unveiled the Clifton Bau-matic -- its first timepiece with a self-made automatic motor, rather than one supplied by component makers such as

Swatch Group AG’s ETA.Making in-house move-

ments is a big draw for watch aficionados because it helps bur-nish a brand’s manufacturing credentials.

The watch brings down the price for timepieces with pro-prietary movements as it retails for 2,300 francs ($2,400), a level at which bought-in motors are the norm.

It was built to respond to cli-ent demands, the Richemont brand says: precision that can rival a Rolex; a more readable date; the ability to run seven years or more without maintenance.

The watch also has a five-day power reserve.

While the brand usually guarantees its watches for two years, this one is covered for three.

Accessibility often means a lower price.

Vacheron Constantin’s new Fiftysix collection, introduced at the Geneva salon, starts at 12,700 francs in steel, a far cry from the gold and platinum offerings by the brand, whose prices can run into six figures.

“Richemont brands are try-ing to engage with a younger generation by offering prices that are lower than those typi-cally associated with its brands,” said Jon Cox, an analyst at Kepler Cheuvreux.

Officine Panerai, known for big, chunky timepieces that gar-nered Sylvester Stallone as a fan and can fetch more than 20,000 francs, introduced some of its smallest and least expensive products yet, include the Lumi-nor Due 3 Days Automatic, which measures a more svelte 3.8 centimeters (1.5 inches) across and sells for 6,000 francs, which may draw more female clients.

For Richemont’s biggest brand, Cartier, value is about convenience.

Its $6,000-plus 2018 Santos model comes with a bracelet in leather and one in steel, which the customer can change and alter at home without the has-sle of going to a boutique.

This allows people to change the look and feel more often for their selfies on Instagram.

“It’s as true for a watch in steel as a watch in gold,” said Cartier CEO Cyrille Vigneron in a presentation at the fair.”Even for high-end jewelry watches, you need to establish a clear sense of the tangible value of the watch.”

Richemont has been open-ing more of its own boutiques to reduce its reliance on third-party retailers.

That brings it closer to cus-tomers, giving the company more feedback on what they want in a watch.

Global air finance titans ponder whether boom will ever end

As the titans of the $140-billion a year aircraft financ-ing industry gathered in Dublin this week to celebrate an unprecedented boom, a few were cast-

ing a cold eye on mistakes of the past - and whether they could happen again.

Ireland owes its dominance of global aircraft finance to the rise and spectacular collapse in 1992 of industry pioneer Guinness Peat Aviation (GPA), which demon-strated both the risks and returns possible from financing airplanes.

The former GPA executives who now dominate the industry were debating which of the new players and investors that have flooded in in the last five years might not have learned from those mistakes - and whether the industry had finally broken its cycle of spectacular booms and busts.

The five-star venues that every year host the sector’s showcase conferences were heaving with hundreds of new investors - many from China - who have poured in to a once-obscure industry as global investors engage in a desperate search for returns.

Throngs of financiers spilled into the street from the 200-year-old Shelbourne Hotel during the Airline Eco-nomics conference, whose delegate list has tripled to 3,000 in five years.

“Sentiment is as positive as I have seen it,” Alec Burger the head of No.

2 lessor GECAS - formed from the hulk of GPA - told a packed sec-ond conference, Global Airfinance, where airline executives buoyed by surging air traffic eyed funds to expand their fleets.

“This will be the fourth year of global air-line profits above $30 billion and that is beyond unprecedented,” Flight Ascend chief economist Peter Morris said.

Optimists insist the flood of Asian money - around 20 Chinese

lessors have opened Dublin offices since the start of the decade - confirms the emergence of air finance as a wor-thy asset class in its own right.

Aengus Kelly, the former GPA employee who is now CEO of the world’s largest lessor AerCap, said the number of banks and bond investors willing to lend to his firm has mushroomed from 50 to 500 in two decades.

“Is it the case that all of them are in for the long haul? - Of course not.

Have they come in looking for yield? - Of course they have,” he said in an interview.”But I do think on a struc-tural basis the industry is well understood and people are starting to divorce it from airline cyclicality.”

Domhnal Slattery, head of No.3 firm Avolon, told delegates that those who thought

the market must be peaking were “cynics” and that the cyclical peak was years away.

French message to Japan Inc: UK presence in EU is finishedBLOOMBERG

REUTERS/DUBLIN

The five-star venues that every year host the sector’s showcase conferences were heaving with hundreds of new investors - many from China - who have poured in to a once-obscure industry as global investors engage in a desperate search for returns.

BLOOMBERG Brands moved away from their competition in past years to add ever-more-intricate and expensive mechanisms like perpetual calendars and tourbillons, which counter the effects of gravity but whose usefulness is debated.