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BUSINESS

PAGE | 20

Chevrolet announces new digital campaign to support Qatar star Barshim at IAAF Worlds

PAGE | 21

GM reports higher Q3 sales, lower inventories amid UAW strike

THURSDAY 3 OCTOBER 2019 19

Budget hotels continue to register solid growth

MOHAMMAD SHOEB

THE PENINSULA

Collective efforts in boosting tourism and the performance of Qatar's hospitality sector are yielding positive results. The average revenues of hotels, except 5-Start category properties, witnessed a moderate growth (year-on-year) in August 2019 (year-to-date, YTD), with the budget hotels (2&1Star) recording the highest nearly 25 percent rise in their revenues.

The average revenue of hotels, measured by per available room, increased to QR237 in August 2019 (YTD), up nearly 2.6 percent, or QR6 per room, compared to QR231 a year ago (August 2018), official data released yesterday show.

Supported by significant increase in the number of tourists, which resulted in the increase in hotel occupancy rates, the revenue per available room of hotels improved in August 2019 compared to a year ago, according to data released by the Planning and Statistics Authority.

Supported by

significant increase

in the number of

tourists, which

resulted in the

increase in hotel

occupancy rates, the

revenue per available

room of hotels

improved in August

2019 compared to a

year ago.

The average occupancy of hotels (all categories combined) in August (YTD) increased by 5 percent to 63 percent against 58 percent for the same period last year.

When analysed by individual categories, data show that all categories of hotels (barring 5-Star category) registered a moderate growth in August in `hotel revenues per available room' by varying degrees ranging between QR5 and QR22, with 2&1-Star hotel rooms seeing the highest 25 percent, or QR22 (from QR87 to QR109). ?P20

Yousuf Mohamed Al Jaida, Chief Executive Officer, QFC, addressing leaders from Qatar's banking sector during the roundtable.

QFC hosts roundtable to explore growth opportunities in the financial sector

THE PENINSULA

DOHA

The Qatar Financial Centre hosted an event entitled, "Economist Roundtable: Prospects for Qatar's Financial Sector". The event convened leaders and experts from Qatar's banking community to discuss the efficiency, productivity and competitiveness of Qatar's capital markets and financial sector.

The Economist Roundtable comprised of presentations from the Ministry of Finance, Brookings Doha and the Qatar

Financial Centre centered on Qatar's financial sector.

Based on data from United Nations' Statistics Division presented during the event, productivity of Qatar's financial sector is comparatively high and increasing, which raises the prospect for investing strategically in a range of products, services and systems to ensure competitive international positioning, the experts observed.

Yousuf Mohamed Al Jaida, Chief Executive Officer, QFC, said: "Qatar's economy has witnessed stable growth and the

financial sector has been a significant contributor to this development. As the economy expands and diversifies, so would the demand for innovative products and services. Meeting these demands is imperative in strengthening the sector's productivity and competitive advantage."

Al Jaida added: "With a commitment to support and diversify Qatar's economy, the QFC is pleased to have organised this event which has proven to be an excellent platform in identifying different avenues to further

develop Qatar's capital markets and financial sector and ensure its sustainable growth."

The QFC is an onshore jurisdiction that allows registered companies to enjoy competitive benefits, such as working within a legal environment based on English common law, the right to trade in any currency, up to 100 percent foreign ownership, 100 percent repatriation of profits, 10 percent corporate tax on locally sourced profits, and an extensive double taxation avoidance agreement network with 81 countries.

US-based Flowserve aims to bring `predictive maintenance technology' to Qatar

LANI ROSE R DIZON

THE PENINSULA

US-based Flowserve Corporation, which is one of the world's largest suppliers of industrial and environmental machinery and services, aims to bring its predictive maintenance technology to Qatar.

Globally, there is a growing demand for predictive maintenance, which was designed to prevent asset failure and increase operational efficiency in industries.

The global predictive maintenance industry garnered $2.80bn in 2018, and is estimated to reach $23.01bn by 2026, growing at a CAGR of 30.2 percent from 2019-2026, according to the latest report by Allied Market Research.

Flowserve, which has over 18,000 employees in more than 55 countries, is now in talks with various industry leaders in Qatar to test the new technology and invest in this rapidly expanding market.

"Predictive maintenance is being demanded more and more by our customers globally. I believe this will continue in the years to come. We are beginning to have pilot tests for predictive maintenance with our customers in certain countries. And certainly we will bring this to Qatar. This is a region for us that is extremely important. And

Qatar is one of those countries we feel very connected to. We're looking forward to providing this as part of our additional product line and services to our customers here," Tom Diez (pictured), Global Vice President for Distribution and OEM Seals & Sales Specialist at Flowserve told The Peninsula recently.

To date, Flowserve has one of the largest installed bases of pumps in Qatar. The company has been working in partnership with Qatari company Petrotec since 2003. Recently, the two companies inaugurated a dry gas seal repair facility in Qatar, as part of a localisation program for services and industries in the energy sector (Tawteen).

Diez added: "Qatar is a very

significant market. And we've been expanding our relationship with Petrotec to provide local services to the Qatari customers. We're bringing the latest technologies and are investing in new technologies such as the Internet of Things (IoT), because we believe it is the future. Investments in LNG is extremely heavy in Qatar as well as the US. As demand increases, we will continue investing with Petrotec and supply what is required by the Qatari market".

In Qatar, demand for predictive maintenance is mostly seen from customers in critical operations such as oil and gas sectors, the power sector, and other market leaders in the industries who are looking to reduce their capital investments and operating expenses, said Diez.

"Running an operation with lots of installed equipments, and if you can predict when a particular piece of equipment is going to fail, that adds a lot of value... And for many of these companies, a day of equipment being down represents revenue loss worth millions of dollars depending on the size of the industry. So they're looking for solutions from companies who can provide the level of expertise and intelligence. And in our case, in the space where we operate, we believe that we can provide that. And that's what we're looking to work and develop," Diez added.

20 BUSINESS

THURSDAY 3 OCTOBER 2019

Qatari private sector explores investment opportunities at Oman's Duqm Port

MARKETWATCH

QSE 10,359.84 -74.81PTS 0.72%

FTSE100 7,122.54 -237.78 PTS 3.23%

DOW

CRUDE

26,102.18 $52.47

-470.86 PTS -1.15

1.77%

Dow & Brent before going to press

THE PENINSULA DOHA

Qatar Chamber yesterday held a workshop on the potential investment opportunities available at Oman's Duqm Port and incentives offered by the Special Economic Zone in Duqm (SEZD) for investors as well as encouraging Qatari businessmen to invest in the port.

The event also highlighted the infrastructure of the region, the various project components such as Duqm port, dry dock, airport, Duqm Refinery and oil storage station.

The workshop focused on the investment climate in the region and the incentives, benefits and facilities obtained by the investing companies.

The event was attended by Qatar Chamber First ViceChairman Mohamed bin Ahmed bin Towar Al Kuwari, Commercial Director at Duqm Erwin Mortelmans and Director of Business Support Hesham Al Ebrahim. In a presentation, Erwin Mortelmans said that the Duqm Port is the largest economic project in Oma. It has several industry, tourism, logistics, real estate development and a multi-purpose port, airport, dry dock for ship repair, fishing port and fish industries.

He said the port provides a number of facilities and incentives, including allowing the foreign investor to own 100 per cent of the projects and tax exemption for

Qatar Chamber First Vice-Chairman, Mohamed bin Ahmed bin Towar Al Kuwari (left), presenting a memento to the visiting Omani officials.

up to 30 years, renewable for a similar period, and it also provides an ease of facilities such as customs visa for expat workforce which the project needs.

He also called on investors and representatives of Qatari companies to explore investment opportunities in the port. The strategic location of Duqm, its proximity to Asian and African markets, as well as Gulf Cooperation Council (GCC) markets, qualifies it to be an economic and investment hub in the region.

For his part, Bin Tawar said that Qatar and Oman enjoy excellent relations, noting that the port of Duqm is located in a special location and strategic location in the region, and that it is situated out of the Strait of Hormuz in the middle of Indian Ocean, terming it as an ideal destination for a number of neighbouring markets.

He noted that there are many Qatari investments in the private sector in the port, and that there is a tendency for Qatari business

owners to identify the various investment opportunities in the port in particular and the economic zone in Duqm in general.

He also stressed the Chamber's support both countries businessmen to build trade partnerships and economic alliances, affirming it encourages Qatari business owners to cooperate with their counterparts in the Sultanate of Oman and establish trade partnerships and to explore opportunities in the Sultanate, especially in the Port of Duqm.

Commercial Bank launches `CB Fawri'

THE PENINSULA DOHA

Commercial Bank, one of the leading full-service banks in Qatar, is once again pioneering the market with a first-of-its-kind instant discount promotional feature to be added to its Loyalty and Offers program.

The newly launched "CB Fawri" offers Commercial Bank's customers instant discounts automatically when using their Credit or Debit card at selected merchants in Qatar. Just as its name implies in Arabic, customers get to enjoy the discounts automatically at selected partners without the need to ask for it.

Commenting on this launch, Roya Khajeh, AGM, Head of Cards and Payments stated, "We aim to continuously surprise and delight our customers with new to market innovations and best-inclass rewards and loyalty benefits. We are certain that customers will enjoy the various instant discounts when using a Commercial Bank Card".

CB Fawri allows Commercial Bank Credit or Debit cardholders to benefit from exclusive automated discounts, based on which the total purchase amount will be adjusted, whenever they use their

Commercial Bank Card on a CB POS terminal. Customers can check the growing list of offers on the CB Mobile Banking App by simply tapping on the tab "Offers" and check the CB Fawri participating merchants.

"On the Qatari market level, this campaign is a first," said Amit Sah, EGM and Head of Retail Banking, Office of the EGM, Retail and Consumer Banking at CB. "We, at Commercial Bank, endeavor to come up and implement out-of-the-box services and promotions, making us leaders in the Card innovation domain. CB Fawri is a programme we take pride in, for no other bank in Qatar has implemented it before." Speaking of customers' experience, Amit added: "We are thrilled to see how our customers are reacting to such a feature. Getting an automated discount will surely come with a surprise!"

Mexico plans infrastructure blitz worth billions to shore up economy

REUTERS

MEXICO CITY

Mexico will soon unveil a set of major infrastructure projects drawn up by the private sector to lift the economy, President Andres Manuel Lopez Obrador said yesteday, seeking to banish the specter of recession from his young administration.

Speaking at a news conference, Lopez Obrador said some 1,600 projects were under consideration that would "reactivate" Mexico, Latin America's secondbiggest economy.

"This is really important, because it would help us to spur economic growth," said the president, who took office in December pledging to deliver annual growth of four percent.

The investment package comprises projects worth more than $400bn over the course of the 2018-2024 administration, according to two people familiar with the matter who spoke on condition of anonymity because discussions are ongoing.

Mexico's economy has failed to gain traction since Lopez Obrador took power, stagnating in the second quarter after contracting during the January-March period.

Still, the central bank said last week it expected the economy to recover somewhat in the remainder of 2019, and Lopez Obrador said there was "no trace" of recession in Mexico.

A veteran leftist who has had an often strained relationship with business leaders, Lopez Obrador has blamed chronic poverty and violence in Mexico on what he has characterized as decades of misrule by a corrupt economic and political elite.

On Wednesday, however, he praised the private sector's attitude and its role in crafting the infrastructure agenda.

"They made the proposal, they are financing the studies," he said, adding the plans would be presented to the public soon.

Lopez Obrador raised hackles across the Mexican corporate landscape when, five weeks before taking office, he canceled a $13bn, part-built new airport for the capital, the biggest infrastructure project of the previous administration.

He argued the airport was rife with graft and geologically unsound, but critics said he could have investigated and prosecuted any wrongdoing, then finished it anyway.

Lopez Obrador has also called into question other major projects agreed under the previous government, chilling investment in Mexico at a time it has had to contend with the threat of tariffs from U.S. President Donald Trump.

Nevertheless, the Mexican president has cheered markets by running a tight budget, and he suggested the private sector would play a major role in financing the infrastructure drive.

Budget hotels continue to register solid growth

FROM PAGE 19

This was closely followed by 3-Star category hotels which saw their revenue increasing to QR132 in August, up by nearly 10 percent (or QR12 per available room) compared to QR120 reported for August 2018.

Revenues of 4-Star hotels edged-up to QR148 in August 2019 (YTD) against QR143 per available room in the same month last year. While the revenues of 5-Star category hotels slipped marginally by 1.2 percent or (QR4 per room) to QR320 in August 2019 compared to QR324 in August 2018.

The overall improvement in the performance of the hotel industry can be attributed mainly to increase in the number of tourists, especially as a result of sharp growth in cruise tourism. According to recently released data about 1.34 million (to be exact 1,346,403) people visited Qatar in August 2019 (YTD). Out of that 1,235,888 people came by Air and 110,515 by sea.

Europe and Asia accounted for a significant majority (70 percent) of the total number of visitors in August (YTD) 2019, with Asia, including Oceania, accounting for 39 percent and Europe 31 percent. GCC countries accounted for 12 percent of the total number of visitors for the period.

Nearly 91.8 percent of the total number of visitors arrived by air and the remaining (8.2 percent) entered Qatar by sea route. No visitors were able to enter the country by land route due to the obvious reason of illegal blockade by Saudi Arabia-led Arab quartet.

Mohamed Jaidah (left), Group Executive Director of Jaidah Group, and Mutaz Essa Barshim.

Chevrolet announces new digital campaign to support Qatari star Barshim at 2019 IAAF Worlds

THE PENINSULA

DOHA

Jaidah Automotive, the official distributor of Chevrolet in Qatar, launched a brand-new digital campaign to support one of Qatar's top athletes ? Mutaz Essa Barshim ? at the Doha 2019 IAAF World Athletics Championships.

As part of the campaign, Chevrolet Qatar released a video that showcases the star athlete walking into a loud, cheering audience, symbolizing his path towards the IAAF 2019. The concept of the video was aligned with the arrival of the new performance Sport Truck products from Chevrolet in 2019, starting with the Tahoe RST equipped with 6.2-liter engine, 10-speed automatic transmission and a few other performance bits; followed by the Silverado RST in May.

Speaking to the video's audience, Mutaz sought to empower aspiring athletes like himself, saying: "If you want to be the best, if you want to

succeed, you've got to keep trying. There's only one beast and the beast is you." The digital campaign builds on Jaidah Automotive's sponsorship of the athlete who was announced as Chevrolet's brand ambassador earlier this year. The sponsorship will see Jaidah Automotive supporting Barshim during the IAAF and the 2020 Summer Olympics. As part of the sponsorship, the company will also host several sporting activities for children and families ? particularly during the upcoming Qatar National Sports Day.

Commenting on the announcement, Mohamed Jaidah, Group Executive Director of Jaidah Group, said: "Mutaz Barshim is a prime example of the dedicated and hard-working Qatari talent who make our country proud. He is an inspiration on so many levels to the up-and-coming generation of young Qataris. We are not only Mutaz's official sponsors, but we are also his biggest fans ? we

look forward to supporting him in his athletic journey as he continues to represent Qatar in some of the world's most important sporting competitions." The IAAF World Athletics Championships is a biennial athletics event organized by the International Association of Athletics Federations (IAAF). The 2019 Qatar edition marks the first time that a Middle Eastern nation hosts the event. The venue of the evet is the Khalifa International Stadium which was recently renovated in preparation for the 2022 FIFA World Cup.

Mutaz Barshim is Qatar's most decorated athlete receiving the country's first ever silver medal at the 2016 Olympics in Rio de Janeiro and a bronze medal at the 2012 Olympics in London. His achievements led to him being named as the 2017 IAAF Male Athlete of the year.

Chevrolet Qatar is proud to share that Mutaz Barshim has been qualified for the IAAF finale taking place tomorrow, at 8.15 pm.

THURSDAY 3 OCTOBER 2019

BUSINESS 21

No-deal Brexit may hit German GM reports higher

economy hard in 2020: Experts Q3 sales, lower

inventories amid

AFP

Germany is widely

indirect effects on the biggest

Meanwhile, output in the vital

FRANKFURT AM MAIN:

believed to have

Britain quitting the European suffered a technical

manufacturing economies in the 19-nation eurozone.

"Above all Germany, but also

automotive industry has fallen more than 20 percent since mid2018, they noted, reflecting pro-

UAW strike

Union without a deal on October recession ? two

Italy and the Netherlands" would ducers pushing through a costly

31 would deal a harsh blow to Germany's already stuttering economy in 2020, leading thinktanks said in Berlin yesterday.

successive quarters of negative growth ? over the summer, after

be hardest hit by a no-deal Brexit, the think-tanks found.

Nevertheless, there would be "no dramatic collapse in eco-

and complex transition to electric and autonomous driving.

While consumer confidence remains high and the services

AFP NEW YORK

General Motors yesterday

"For the coming year, we its economy shrank by nomic development in the euro sector has proven resilient, there reported higher third-quarter

should reckon with a deduction 0.1 percent between

of 0.4 percentage points" in growth if Britain crashes out,

April and June.

area," they added. Germany is widely believed

to have suffered a technical

are signs industrial weakness is spreading into that part of the economy, too.

US auto sales and lower car inventories as it contends with an auto worker strike now in its

experts from five leading eco-

recession ? two successive

Looking ahead, the econo- third week.

nomic institutes said in a joint goods for regulatory compliance, quarters of negative growth ? mists expect growth of 0.5

The biggest US automaker

statement.

while trade in some services over the summer, after its percent in 2019 and 1.1 percent sold 738,638 autos in the third

By contrast, "if Britain's could be stopped or hindered. economy shrank by 0.1 percent in 2020 ? 0.3 and 0.7 percentage quarter, up 6.3 percent from the

future relationship with the EU

Combined with a fall in the between April and June.

points lower compared with year-ago period, but about

is reliably clarified, there should pound and massively increased

"The United States' trade forecasts earlier this year.

10,000 below a projection from

be a swift brightening of eco- uncertainty over future eco- conflicts with China and the EU,"

But "an economic crisis with . Strong cate-

nomic prospects," they added. nomic relationships under- as well as Brexit uncertainty, marked capacity under-utili- gories included truck models be strong in the third quarter,

A no-deal Brexit would mining business investment and were to blame for slowing sation should not be expected, under the Chevrolet and GMC with record van sales and con-

create new barriers at UK-EU consumer spending, British investment worldwide weighing even if downside risks to growth brands.

tinued F-Series sales lead-

borders as both sides are legally demand for imports would fall. on German manufacturing firms, are currently high," the think-

GM's car inventory stood at ership," LaNeve said in a

required to levy tariffs and check

That would have direct and the economists said.

tanks said.

759,633, down almost 50,000 statement.

since the second quarter, the

Fiat Chrysler's sales were

Robots to cut

company said in a brief news essentially flat compared with release that included none of the the year-ago period at 565,034.

200,000 US

usual commentary from The company pointed to con-

executives.

tinued strength of "muscle"

bank jobs in

Nearly 50,000 US auto cars like the Dodge Challenger workers have been on strike and Charger and Ram pickup

next decade,

since September 16 as the trucks.

biggest US auto company and

Autotrader executive analyst

says study

the UAW spar over wages, Michelle Krebs said the Ram health benefits, temporary trucks could benefit from GM's

workers and job security.

travails in the coming period as

BLOOMBERG

A report on Tuesday from dealers run low on GM trucks

HONG KONG

JPMorgan Chase estimated that made at a plant in Mexico that

the strike had cost GM about has been idled due to the UAW

Technological efficiencies

$1bn so far.

strike.

will result in the biggest

Among other companies,

"Dwindling inventory comes

reduction in headcount

Ford reported a 4.9 percent drop at a time of year when pickup

across the US banking

in US sales compared with the sales are strong and at a time

industry in its history, with

year-ago period to 580,251, with when GM is in launch mode,"

an estimated 200,000 job

higher truck sales helping offset Krebs said. "This will put the

cuts over the next decade,

a nearly 30 percent drop in Chevrolet Silverado even further

Wells Fargo & Co. said in a

sedans and somewhat lower behind the popular Ram in sales.

report.

sales of sport utility vehicles.

Most importantly, fewer pickup

The $150bn annually

Ford Vice President Mark truck sales will impact Q3 and

that the country's finance

LaNeve (pictured) said the per- now Q4 profits at GM since

firms are spending on tech

formance is consistent with the pickup trucks account for the

? more than any other industry ? will lead to lower costs, with employee com-

Merkel meets with heads of finance organisations

German Chancellor Angela Merkel (centre) and Director-General of the World Trade Organisation

strategy for 2019 to be a "transitional" year as Ford phases out smaller autos that have been

bulk of income." Shares of GM were down 3.9 percent at $34.72 yesterday. Ford also fell 3.9

pensation accounting for

(WTO), Roberto Azevedo (left), heading to a press conference after a meeting of the heads of selling poorly in the United percent to $8.55, while Fiat

half of all bank expenses,

international economy and finance organisations at the Chancellery, in Berlin.

States. "Our truck, van and com- Chrysler lost 1.3 percent to

said Mike Mayo, a senior

mercial businesses continued to $12.56.

analyst at Wells Fargo Securities LLC. Back office, bank branch, call center and corporate employees are being cut by about a fifth to a third, with jobs related to

Qatari Businessmen Association identifies investment opportunities in Marseille

Dollar falls against yen, euro amid global woes

tech, sales, advising and consulting less affected, according to the study.

QNA DOHA

During the visit, the two sides discussed mechanisms to develop relations in the field of

members of Cadran league and a number of prominent businessmen from Marseille.

REUTERS NEW YORK

participants were relieved the data was not as bad as many

"It will be a dramatic

The Qatari Businessmen Asso- culture, tourism and tourism

A number of French busi-

initially feared especially in

change in contact centers,

ciation has learned about the investment between the two nessmen talked about the port

The dollar dropped against the wake of poor US manu-

and these are both internal

investment opportunities of sides.

activity and its importance in the

the euro and yen yesterday, facturing numbers.

and external," Michael

Marseille, France, on the side-

The Qatari Businessmen Asso- city. They also made a presen-

in line with falls in equities

Data from the US payrolls

Tang, a Deloitte partner

lines of the participation of the ciation was represented by tation on the Euromediterranee

and Treasury yields, amid processor ADP showed that

who leads the consulting

association's delegation in the member of the Board of Directors project, which is a project of

worries about global growth US private sector jobs totaled

firm's global financial-

working visit prepared by the Sheikh Nawaf bin Nasser Al Thani. urban and economic renewal in

following data a day earlier 135,000 last month, lower

services innovation

Qatari Embassy in France in Representatives from Qatar the city of Marseille to create a

that showed a sharp decline than the 140,000 consensus

practice, said in an

cooperation with the French Financial Center and Qatar Devel- huge environmental zone

in US manufacturing activity. forecast.

interview in the Wells Fargo

Cadran league, in the framework opment Bank participated in the around the port.

A US payrolls report on

The dollar initially

report. "We're already

of strengthening relations of visit, as well as Qatar's Ambas-

The project was announced

the private sector showed a trimmed losses against the

seeing signs of it with

friendship and cooperation with sador to the French Republic in 1995 and is still under

lower-than-expected figure yen and euro after the US jobs

chatbots, and some people

major French cities.

Sheikh Ali bin Jassim Al Thani, and implementation.

for September, but market data.

don't even know that

US Fed charts its own course on climate change, too they're chatting with an A.I.

engine because they're just answering questions."

Wells Fargo's Mayo

joins bank executives, con-

REUTERS

banker and one of 17 Fed policy-

That independence gives the Francisco Fed is holding a con-

sulting firms and others in

CORPUS CHRISTI, TEXAS/

makers, said in response to a

Fed great weight in local commu- ference on the economics of

predicting huge cuts to the

WASHINGTON

question at the September 20

nities, even as climate change climate change, the US central

banking workforce amid

lunch.

remains a politically-charged bank's first, on November 8, and

the push toward auto-

Dallas Federal Reserve President

It's not just Texas. After dev-

issue in some parts of the country. it is already over-booked. Organ-

mation. McKinsey & Co. said

Robert Kaplan faced more ques- astating fires in Northern Cali-

"There is a lot of information and izers plan to livestream the

in May that it expects the

tions on one particular topic than fornia and corrosive storms on

statements being thrown around" daylong event for those who miss

headcount for front-office

any other at a recent lunch with the Carolina and Florida coasts,

about climate change, Elizabeth the cut.

workers ? the bankers and

local business owners and the Fed's regional banks are

Chu Richter, an architect who

Academic papers presented

traders historically seen as

community leaders on Texas's delving deeper into how the

moderated the Corpus Christi at the event will weigh rising pol-

among finance firms' most

Gulf Coast.

earth's warming will impact US

lunch last month. But "the Fed is lution's effect on interest rates

valuable assets ? to drop by

It wasn't President Donald businesses, consumers and the

objective; they work off the data and global warming's impact on

almost a third with the rise

Trump's escalating demands that country's $17trillion asset banking

they collect." Climate change economic growth, labor markets,

of robots.

the US central bank lower interest system.

more independently from the research hasn't previously been and monetary policy.

Front-office headcount

rates, or Kaplan's view of the US

That's a sharp departure from White House than Cabinet a major focus at the Fed.

"We've been facing severe

for investment banking and

economy that attendees at the the position of much of the Trump agencies.

Catherine Wolfram (pic- weather-related events over the

trading fell for a fifth year

lunch in Corpus Christi wanted administration, which has

While the Fed's Washington- tured), the program director of past two, three years, so I think

in 2018, according to Coa-

most to know about. They wanted rejected the science on climate based Board of Governors is part the National Bureau of Economic our businesses are a little bit con-

lition Development Ltd.

information on climate change. change, installed climate science of the federal government, its Research's Environment and cerned about the potential costs

data. R. Martin Chavez, an

Texas has suffered cata- deniers in key roles including at governors serve 14-year terms, Energy Economics Program, of these disruptions and say they

architect of Goldman Sachs

strophic floods and billions in the Environmental Protection outlasting any one president. The recalls giving a talk at the Fed's want to learn more about this,"

Group Inc.'s effort to

related losses in recent years. Agency, censored or downplayed system's 12 regional Fed banks headquarters in Washington in said Sylvain Leduc, the San Fran-

transform itself with tech,

Now, "it's hard to meet with a research on the risks of global are privately owned by local 2017. Besides the environmental cisco Fed's chief of research.

said last month that all

business person or a city or a warming, and rolled back regu- financial institutions, and operate economist who invited her, she

"What we are trying to do

traders will soon need

community leader in this state" lations designed to limit green- under the board's supervision, said, "there weren't more than six here is go broad, try to tackle how

coding skills to succeed on

who doesn't have questions on house gas emissions.

within the central bank's overall other people who were even climate risk is impacting the mac-

Wall Street.

climate change, Kaplan, a former

The Fed, though, has a unique mandate of achieving full vaguely interested in the topic." roeconomy and the financial

Goldman Sachs investment structure that means it operates employment and stable prices. Fast-forward two years. The San system," he said.

22 BUSINESS

THURSDAY 3 OCTOBER 2019

WTO to back US tariffs on Europe in clash over Airbus subsidies

REUTERS

BRUSSELS/LONDON

The World Trade Organization was poised yesterday to open the door to hefty US tariffs on European goods over illegal subsidies for Airbus, pushing a 15-year-old row over support for plane giants to the centre of fraught global trade relations.

The Geneva body said it would publish at 4 pm local time (1400 GMT) its decision on a US request to impose up to $11.2bn in tariffs on European Union goods, but people close to the case expect WTO arbiters to award about twothirds of that.

The WTO has found that both Europe's Airbus and its US rival Boeing received billions of dollars of illegal subsidies in the world's largest corporate trade dispute, a legal marathon dating back to 2004.

The cases are expected to lead to tit-for-tat tariffs, beginning with the US measures, deepening transatlantic trade tensions and posing new problems for businesses and markets already roiled by a trade war between Washington and Beijing.

A three-person WTO arbitration tribunal is expected to announce that the United States suffered harm equivalent to

roughly $7.5bn a year from discounted European government loans for the Airbus A350 and A380 passenger jets, according to the people close to the case. Such a decision that would allow Washington to target EU goods worth the same amount.

The focus of nervous global financial markets will then shift to Washington where the US Trade Representative is expected to move quickly to narrow down a preliminary list of goods in line for tariffs, a US source said.

The agency's provisional list of products that are eligible to be targeted with tariffs up to 100 percent covers goods with an annual trade value of $25bn and ranges from Airbus jets themselves to helicopters, wine, handbags and cheese.

Before any tariffs can be

The WTO has found

that both Europe's

Airbus and its US rival

Boeing received billions

of dollars of illegal

subsidies in the world's

largest corporate

trade dispute, a legal

marathon dating back to

2004.

imposed, the WTO's Dispute Settlement Body must formally adopt the arbiters' report in a process expected to take between 10 days and 4 weeks.

Its next scheduled meeting is on October 28, but Washington could request a special meeting 10 days after the arbiters' report is published, suggesting an earliest possible final nod on October 12.

The WTO's decision on EU retaliation rights related to Boeing subsidies is expected early in 2020.

On Tuesday, the head of Irish budget airlines group Ryanair urged the United States and EU to pull back from the brink of a tariff war and said neither side's aviation industry would survive a long dispute.

But Peter Harrell (pictured), a senior fellow at the

Washington-based Center for a New American Security, saw no immediate peace deal.

"My sense is that there will be a settlement only after both sides have imposed tariffs on each other," he said.

Importers led by US airlines that buy Airbus jets have urged Washington to be selective when choosing industries to hit in order to avoid causing collateral damage to the US economy.

Signs that the record corporate trade dispute involving Airbus and Boeing - the largest case ever handled by the WTO is reaching a climax after years of arcane headlines and thousands of pages of rulings have weighed on European shares.

Yesterday, European stocks were already sharply lower ahead of the WTO decision after hitting their lowest in four weeks amid fears about the deteriorating global economy.

Sectors most sensitive to global trade and exports from luxury goods to mining companies bore the brunt of the sell-off, with Gucci-owner Kering and Hermes down more than 2 percent. Airbus fell 1 percent.

Makers of high-end handbags and accessories have also been under pressure due to the violent protests in Hong Kong.

Companies in US added 135,000 jobs in September: ADP

BLOOMBERG

WASHINGTON

Payrolls at companies in the US increased less than forecast in September and the prior month's gain was revised lower, suggesting a manufacturing recession, a fragile global economic outlook and the lingering trade war with China are gradually impacting hiring decisions.

Private payrolls increased by 135,000 after a revised 157,000 gain in August, according to data out yesterday by the ADP Research Institute. That was the smallest advance in three months and slightly less than the 140,000 median projection in a Bloomberg survey of economists after a previously reported 195,000 August increase.

Economists and analysts are closely watching employment data to see if the recession plaguing the manufacturing sector has started to seep into the broader labor market. The data precede the Labor Department's September employment report out Friday, which is forecast to show private payrolls increased by 130,000 in September, below the average monthly pace seen across the decade-long expansion. The unemployment rate is expected to hold at 3.7 percent as wage gains hold up.Goods-producing jobs increased 8,000, the ADP data showed.Serviceprovider employment rose 127,000 in September.Economist's View "Businesses have turned more cautious in their hiring," Mark Zandi, chief economist at Moody's Analytics, said in a statement. Moody's produces the figures with ADP. "Small businesses have become especially hesitant. If businesses pull back any further, unemployment will begin to rise." Hiring at small businesses increased 30,000 and large businesses added 67,000 to payrolls.ADP's payroll data represent about 411,000 firms employing nearly 24 million workers in the US.

QATAR STOCK EXCHANGE

QE INDICES SUMMARY

QE Index

10,359.84

QE Total Return Index 19,062.98

QE Al Rayan Islamic

Index - Price

2,325.31

QE Al Rayan Islamic Index 3,959.30

QE All Share Index

3,056.20

QE All Share Banks &

Financial Services

4,016.57

QE All Share Industrials 3,092.56

QE All Share Transportation 2,633.73

QE All Share Real Estate 1,459.42

QE All Share Insurance 2,974.54

QE All Share Telecoms

922.93

QE All Share Consumer

Goods & Services

8,586.89

-0.72 % -0.72 %

-1.16 % -1.16 % -0.61 %

-0.15 % -1.76 % -0.34 % 0.05 % -0.45 % -1.45 %

-1.10 %

QE MARKET SUMMARY COMPARISON

02-10-2019

Index

10,359.84

Change

74.81

%

0.72

YTD%

0.59

Volume

125,825,325

Value (QAR)

206,084,169.61

Trades

7,527

Up 14 | Down 25 | Unchanged 06

01-10-2019

Index

10,434.65

Change

67.57

%

0.65

YTD%

1.32

Volume

125,860,892

Value (QAR)

243,801,529.23

Trades

6,147

WORLD STOCK INDICES

Index

Day's Close Pt Chg % Chg Year High Year Low

All Ordinaries

6753.3 -99.7 -1.45 6958.7 5620.3

CAC 40 Index/d

5502.69 -94.94 -1.7 5704.93 4606.2

DJ Indu Averg/D 26573.04 -343.79 -1.28 27398.68 21712.53

HANG Seng Inde/D 26042.69 -49.58 -0.19 30280.12 24896.87

ISEQ Overall/d

6216.3 -11.64 -0.19 6551.95 5390.58

KSE 100 INX/d

32363.35 109.03 0.34 #N/A #N/A

S&P 500 Index/d

0

0 0 3027.98 2443.96

GOLD AND SILVER

GOLD QR174.5897 gramme SILVER QR2.0319 per gramme

EXCHANGE RATE

Currency US$ Pound Sterlig Swiss Frnac Japanese yen Australian Dollar Canadian Dollar Indian Rupee Pakistan Rupee Philipine Peso Bangala Takka Sri lanka Rupee Nepalese Rupee South African Rand Euro

Buying (QAR) 3.6305 4.4385 3.6218 0.03356 2.4126 2.726 0.0508 0.0229 0.0694 0.0427 0.0198 0.0317 0.2366 3.9577

Selling (QAR) 3.6500 4.5013 3.6733 0.03421 2.4597 2.7797 0.0518 0.0235 0.0708 0.0436 0.0203 0.0324 0.2412 4.0139

THURSDAY 3 OCTOBER 2019

Fed's Williams sees signs of economy slowing from strong pace

BLOOMBERG

NEW YORK

New York Fed President John Williams (pictured) said the US economy looks strong from the rear view mirror while the outlook is more mixed because of numerous uncertainties and risks.

"We have seen signs of the economy slowing somewhat,' Williams said yesterday during a talk in La Jolla, California. `We want to get monetary policy positioned to keep the economy growing at a sustainable pace.' Williams and his colleagues on the US central bank's policysetting Federal Open Market Committee voted September 18 to cut their benchmark interest rate for a second time this year, following an initial reduction in July that marked the first since the financial crisis in 2008. They cited slowing global growth, trade policy uncertainty and muted inflation as key considerations.

US stocks tumbled to the lowest since August Wednesday amid concerns about the health of global manufacturing. A closely-watched indicator of growth in US manufacturing slumped in September to the lowest level in 10 years, according to a report published Tuesday. Data out Wednesday showed that hiring at US companies is cooling.

`If you just look in the rearview mirror, or you just take a snapshot of where the US economy is, it's very strong,' Williams said, citing the

strength of the labor market and consumer spending. `So, the real issue is, where are things going from here, and that's where it's a much more mixed picture.' The New York Fed chief also responded to questions about volatility in recent weeks in money markets, after a combination of corporate tax payments and a Treasury auction settlement drained billions of dollars from banks' reserve accounts at the Fed. The swift reduction in cash balances sent short-term interest rates surging in the market for repurchase agreements, or repos, forcing the New York Fed to intervene with overnight cash loans for the first time since the crisis.

When asked what's been keeping him awake at night, Williams answered: `These short-term interest rate moves and understanding what's going on.' `We saw interest rates moving up and not a lot of lending taking place between the banks that would keep

those interest rates lower,' he said.

Williams said the New York Fed is analysing what happened in the last few weeks and studying its tools for intervening in the markets. The bank's response was very effective, he said.

The episode has raised questions about whether the Fed went too far in unwinding its balance sheet between the end of 2017 and July 2019.

The effort to partially unwind the $4.5trillion bond portfolio the central bank amassed in the wake of the crisis, which has been criticized by US President Donald Trump as an unnecessary tightening of monetary policy, gradually drained reserves from the banking system over that period. Now, Fed officials are saying they may have to resume expansion of the balance sheet soon to ensure appropriate liquidity.

Williams said that today the U.S. economy is in a `favorable place,' but pointed to numerous uncertainties and risks that the Fed is navigating.

"Looking ahead, there are a number of crosscurrents, if you will, that are leading to slower US growth," he said. "We've seen the effects of the trade tensions and other geopolitical tensions lead to higher uncertainty about the future, and that seems to have contributed to a pullback in business investment, in the US and abroad. And we're seeing a pullback in international trade as well.'

Denmark's new government to boost spending after years of austerity

REUTERS/COPENHAGEN

Denmark's new Social Democratic government said yesterday it would pour more money into healthcare, education and the welfare system, following through on its campaign pledge to reverse years of cuts by previous administrations.

The government said it had room to manoeuvre on spending because Denmark's public finances were in good shape after years of austerity and that it would also raise taxes on businesses to help pay for the policy shift.

The Social Democratic Party, the main architect behind the creation of Denmark's cradle-to-grave welfare state in the 20th century, won power in a June 5 election as voters rebelled against austerity and the rise of right-wing nationalists.

Many Danes, who pay some of the highest taxes in the world to fund their welfare system, are concerned that further spending cuts would erode the country's long-cherished universal healthcare, education and services for the elderly.

The government led by Prime Minister Mette Frederiksen said it would channel an extra 5.4 billion crowns ($789 million) into welfare next year, including hiring 1,000 new nurses, supporting poor families, and increasing spending on education. The spending measures will push Denmark's budget into a deficit of 0.1 percent of gross domestic product next year, though it will still be well below the European Union limit of 3 percent and comes after a surplus of 0.2 percent in 2018. "With some of the healthiest public finances in Europe, Denmark is able to loosen its fiscal policy as the ECB (European Central Bank) has urged EU states to do. On the other hand, the Danish economy is not really in need of any fiscal boost," Danske Bank economist Las Olsen said.

CROSSWORD

MALL

War (2D/Hindi) 2:00, 5:00, 6:00, 8;45 & 11:00pm A Shaun The Sheep Movie: Faramageddon (2D/Animation) 4:30pm Sye Raa Narasimha Reddy (2D/Telugu) 2:00 & 8:00pm; Sye Raa Narasimha Reddy (2D/Hindi) 5:00pm Sye Raa Narasimha Reddy (2D/Tamil) 2:00 & 11:00pm Joker (2D/Crime) 7:45 & 11:30pm Avengement (2D/Action) 10:00pm

ROYAL PLAZA

A Shaun The Sheep Movie: Faramageddon (2D/Animation) 2:15 & 4:15pm War (2D/Hindi) 6:00, 8:45 & 11:30pm Sye Raa Narasimha Reddy (2D/Telugu) 2:00 & 8:00pm; Sye Raa Narasimha Reddy (2D/Hindi) 11:00pm Sye Raa Narasimha Reddy (2D/Tamil) 5:00pm Ganagandharvan (2D/Malayalam) 2:30pm; Abominable (2D/Animation) 5:00pm Joker (2D/Crime) 7:00, 9:15 & 11:30pm

LANDMARK

War (2D/Hindi) 2:15, 8:30 & 11:15pm Abominable (2D/Animation) 5:00pm Sye Raa Narasimha Reddy (2D/Telugu) 2:00, 8:00 & 11:00pm; Sye Raa Narasimha Reddy (2D/Hindi) 5:00pm Sye Raa Narasimha Reddy (2D/Tamil) 4:00pm Ganagandharvan (2D/Malayalam) 11:30pm Joker (2D/Crime) 7:00 & 9:15pm A Shaun The Sheep Movie: Faramageddon (2D/Animation) 2:15 & 6:45pm

AL KHOR

(From 04/10/2019) Sye Raa Narasimha Reddy (2D/Telugu) 12:00, 3:00 & 9:00pm War (2D/Hindi) 11:30am, 2:30, 5:30, 8:30 & 11:30pm Joker (2D/Crime) 11:00am, 1:30, 4:00, 6:30, 9:00 & 11:30pm Asuaran (2D/Tamil) 6:00 & 12:00pm

FLIK

Mirqab Mall

A Shaun The Sheep Movie: Faramageddon (2D/Animation) 10:15am, 12:00 & 1:45pm Abominable (2D/Animation) 10:30am, 1:35am, 12:30, 2:30, 3:35 4:30, 6:30 & 8:00pm; Ad Astra (2D/ Adventure) 11:25, 1:50, 3:30, 4:15, 9:55pm & 0:20am; Avengement (2D/Action) 11:55pm Joker (2D/Crime) 10:45am, 11:45am, 1:15, 2:10, 3:45, 4:35, 5:35, 6:10, 7:00, 9:25, 10:00, 11:50pm & 0:25am. Rambo: Last Blood (2D/Action) 10:15, 12:20, 1:35, 2:20, 4:20, 6:20 & 8:20pm; Sye Raa Narasimha Reddy (2D/ Hindi) 8:10pm; (2D/Tamil) 6:40, 8:35 & 11:05 The Informer (2D/Crime) 11:10am, 1:25, 3:40, 5:55 & 11:25pm War (2D/Hindi) 6:00, 9:00, 10:20pm & 0:00 midnight.

ROXY

Abominable (2D/Animation) 10:30am, 12:30, 2:30, 4:40, 6:50 & 9:00pm Ad Astra (2D/Adventure) 4:00pm Ganagandharvan (2D/Malayalam) 10:30am, 1:20, 4:10, 7:00 & 10:00pm Little Monsters (2D/Comedy) 11:00am & 11:00pm Namma Veettu Pillai (2D/Tamil) 10:30am, 1:40, 4:50, 8:00 & 11:00pm Rambo: Last Blood (2D/Action) 3:30, 8:00 & 10:30pm The Informer (2D/Crime) 11:00am, 1:00, 1:30, 5:30, 7:15 & 10:00pm

ASIAN TOWN

(From 04/10/2019) War (2D/Hindi) 12:30, 3:15, 6:00, 6:30, 9:00, 9:15, 11:45pm & 2:45pm Sye Raa Narasimha Reddy (2D/Telugu) 12:30, 3:45, & 10:15pm Sye Raa Narasimha Reddy (2D/Tamil) 12:30pm & 12:00 midnight. Sye Raa Narasimha Reddy (2D/Hindi) 3:45 & 7:00pm Asuaran (2D/Tamil) 12:30, 3:15, 6:00, 8:45, 11:30pm, 1:30am & 2:15am

Note: Programme is subject to change without prior notice.

SYE RAA NARASIMHA REDDY

Sye Raa Narasimha Reddy is a Telugu-language epic action film directed by ..... Srinivasa Rao alleged that Narasimha Reddy only questioned the British authorities for his monthly pension.

BUSINESS 23

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