BUSINESSMonday 19 February 2018

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QAFCO, Hassad and Yara sign

MoU

QIIC’s 2017 premium stood at QR316.6m

QIMC acquires UDC stake in GFCTHE PENINSULA

DOHA: Qatar Industrial Manu-facturing Company (QIMC) has finalised the acquisition of United Development Company’s (UDC) stake (400 shares) in Gulf Formal-dehyde Company (GFC), repre-senting 10 percent of GFC’s share capital therefore increasing QIMC’s ownership in GFC to 30 percent.

The sale deal was signed by Sheikh AbdulRahman bin Mohamed bin Jabor Al Thani, Chairman of QIMC, Turki bin Mohammed Al Khater, Chairman of United Development Company, Abdulrahman Al Ansari, Chief

Executive Officer of QIMC and Ibrahim Jassim Al Othman, UDC President & Chief Executive Officer.

Commenting on the acquisi-tion, Sheikh AbdulRahman bin Mohamed bin Jabor Al-Thani, Chairman of QIMC said QIMC is keen on strengthening its invest-ment portfolio in the industrial sector. “QIMC hopes the deal will have a positive impact on its future corporate earnings”, he added.

For his part, Turki bin Mohammed Al Khater, UDC Chairman said “The sale of UDC’s shares is consistent with the com-pany’s strategy of focusing on core

activities, namely real estate devel-opment and related operational services”. The sale will increase QIMC’s shareholding in Gulf For-maldehyde Company from 20 per-cent to 30 percent, and will be reflected on UDC’s 2018 first quarter financial results.

“Over the last several years, UDC has emerged as a leader in the real estate development sector in Qatar, and the region, and we will continue along this successful path by focusing on the businesses that cater to our targeted growth,” com-mented UDC CEO Ibrahim Jassim Al Othman.

→ Continued on page 18Sheikh AbdulRahman bin Mohamed bin Jabor Al Thani (second right), Chairman of QIMC and Turki bin Mohammed Al Khater (second left), Chairman of UDC shake hands after signing the deal.

QSE hints at listing international ETFsMOHAMMAD SHOEB

THE PENINSULA

DOHA: Qatar Stock Exchange (QSE) has hinted that the bourse might list in the future the ETFs based on securities whose primary listing is over-seas. Sharing basic informa-tion to investors on the compo-sition, characteristics and advantage of QSE’s upcoming ETFs yesterday, the bourse said: “A time may come where QSE lists ETFs based on securities whose primary listing is over-seas. ETFs bring convenience to the investor, he/she may use existing local architecture (accounts, brokers, order types) to quickly invest in a new and diversified holdings set,”, the bourse said in a statement.

Speaking to The Peninsula recently, Rashid bin Ali Al Man-soori, CEO, QSE said the bourse is working with some leading international banks to intro-duce global Shariah-compliant ETFs on the local bourse. He said QSE will list at least a couple of Exchange Trade Funds (ETFs) within this quarter.

“Our ETFs will be listed within the first quarter of this year. We have two ETFs in the pipeline. One is Al Rayan, which valued about between QR300m and QR400m, and the other one is from Doha Bank with a significant value,” Al Mansoori said.

However, he did not pro-vide further details on the pro-posed Islamic ETF, adding that “it is still in the early stages”.

“It is a very big one which will be listed within this year. The product will provide more opportunities of investments and boost the liquidity in the

capital market of the country. He said that things on the listing of global ETF will be clearer during the second quarter of this year.

“These new products and ETFs will provide a diversified option to investors, and attract more foreign capital to our market. And his will also be an additional step on the part of QSE to be a global exchange by listing international ETFs,” noted Al Mansoori.

The listing of ETFs are part of the initiatives QSE has been working to introduce to the market as means of broadening the range of products and serv-ices it offers.

Al Mansoori also noted that the ETFs are increasingly important part of the invest-ment landscape, covering every conceivable asset type, market sector and trading strategy.

QSE is also working on other products, such as REITs (real estate investment trust), the introduction of new serv-ices such as securities lending and borrowing and covered short selling and the launch of the Venture Market to help to serve small and medium-sized enterprises (SMEs).

The Exchange is working in close cooperation with all stakeholders and SME-related entities, including Qatar Devel-opment Bank (QDB), Qatar Chamber among others, to encourage SMEs and family-owned companies to get listed on the QSE main index as well as the upcoming junior market (Venture Market) index.

Recently Al Mansoori announced that some five to eight SMEs are expected to be listed on the Qatari bourse this year.

Oman Gas working with banks on $1bn bridge loan REUTERS

DUBAI: State-owned Oman Gas Co. is working with a group of banks to raise a bridge loan of slightly over $1bn, which will later be refi-nanced via a US dollar bond issue, sources familiar with the matter said.

The natural gas transport company, which was bought by state-owned Oman Oil Company in 2013, will use the financing for capex purposes and to purchase assets from the government, the sources said.

One of the sources said the loan talks were at an early stage with “a lot of building blocks” still needed before it can be completed.

A group of banks including Bank Muscat, JPMorgan, Natixis, and Sum-itomo Mitsui Banking Corpo-ration were working with the company on the planned financing, the sources said.

The loan is expected to have a one-year maturity extendable by another year. After this period, the com-pany plans to refinance the debt facility - and potentially raise more funds for addi-tional capex plans - through the issue of US dollar-denom-inated bonds.

One of the sources said the loan would be finalised as soon as possible this year, but that the exact timeline was not clear.

Oman Gas was estab-lished in 2000 with a 27-year concession to own, construct and operate natural gas facil-ities in Oman, according to its website.

9,079.43 +51.72PTS0.57%

QSE FTSE100 DOW BRENT7,294.70 +59.89 PTS0.83%

25,219.38 +19.01 PTS0.08% Dow & Brent before going to press

$61.61 +0.61

18 MONDAY 19 FEBRUARY 2018BUSINESS

QIIC’s 2017 premium stood at QR316.6mTHE PENINSULA

DOHA: Qatar Islamic Insurance Company (QIIC)has booked a Gross Written Contribution (Premium) of QR316.6m for the year 2017, up from 313m posted in 2016.

The shareholders’ profit stood at QR61.9m compared to QR 63.5m recorded a year ago. The Earnings per share stood at QR4.13 compared to QR 4.23. The policyholders’ Surplus reg-istered more than 100 percent growth and increased to QR16.2m in 2017 compared to QR7.9m in 2016.

The company disclosed the financial results for the year in the Board meeting, chaired by the Board of Directors Chairman Sheikh Abdullah bin Thani Al Thani.

Sheikh Abdullah said the Board appreciated the manage-ment’s efforts in achieving these results despite a very chal-lenging environment in 2017 due to negative impact of low oil prices on national economy. The Board recommended the Gen-eral Assembly to declare 35 per-cent cash dividend on nominal share value i.e. QR 3.5 per share, he said. He also announced that the company shall distribute, for

the eighth consecutive year, 20 percent surplus to all the eligible policyholders for 2017 yet again demonstrating the attraction of the Sharia Compliant Insurance system (Takaful) that rewards both shareholders as well as policyholders.

Ali Ibrahim Al Abdulghani, CEO of Qatar Islamic Insurance, commented that the manage-ment’s prudent underwriting and risk management policies generated good technical results that supported overall results in 2017 when investment returns were falling. He also thanked all Company staff for their team-efforts, dedication and loyalty in making Qatar Islamic Insurance a role model in Takaful industry world-wide.

Qatar Chamber takes part in joint Arab-Turkish Chambers meetTHE PENINSULA

DOHA: Qatar Chamber (QC) participated in a joint meeting between Arab and Turkish chambers, as well as the board of directors meeting of Turkish Arab Chamber of Commerce. The meetings were held in Beirut, in aim to promote Turkish-Arab economic and trade relations, QNA reported.

QC Director General Saleh bin Hamad Al Sharqi said the two meetings focused on the need to raise the Arab-Turkish cooperation relations to desired levels.

He added that the trade volume between the Arab countries and Turkey recently saw growth, reaching nearly $50bn annually, however it is still inconsistent with the great potential of both sides.

He said this needs activa-tion of joint cooperation, estab-lishing partnerships and trade and investment alliances that contribute to increasing mutual trade between Arab countries and the Republic of Turkey.

Al Sharqi said QC supports all that contributes to increasing mutual trade between both countries, and proposed to host the Arab and

Turkish chambers meeting which will be held after the next meeting in Algeria. He added that the participating delegations welcomed the pro-posals, valuing Qatar’s role in promoting trade relations between Arab countries and Turkey.

During the joint meeting, President of the Union of Turkish Chambers and Com-modity Exchanges Rifat Hisar-cikli Oglu said the Arab world and Turkey have great poten-tials that have not yet been exploited.

He call for multiplying efforts in order to increase the

trade volume to an acceptable number through establishing Arab-Turkish economic alli-ance, creating an electronic link to enhance trade exchanges and forming an arbitration com-mittee comprising representa-tives from the Arab and Turkish chambers to review contracts and settle trade disputes.

Oglu highlighted the impor-tance of neutralizing economic cooperation from any political differences between countries, saying that industrial exports accounted for 92 percent of the total Turkish exports, half of which are exported to Europe at the moment.

QNB to sell 2.1% stake in EgyptTHE PENINSULA

DOHA: QNB Group has mandated CI Capital in Egypt to advise on the necessary action to sell approximately 2.1 percent of QNB Group’s stake in QNB ALAHLI, Egypt. QNB Group currently holds 97.12 percent of QNB AlAhli. In a regulatory filing to Qatar Stock Exchane (QSE), the bank said its stake will stand at 95 percent after the sale.

The sale of the 2.125 per-cent stake is intended to comply with Egyptian stock exchange rules that require a free float of not less than 5 percent, QNB Alahly said in a statement, Reuters reported.

QNB entered Egypt by buying Societe Generale’s Egyptian business for $2bn in 2013 and QNB Alahly is the third largest Egyptian bank by assets, according to Thomson Reuters data.

QIMC buys UDC stake in GFC→ Continued from page 17

GFC was established in 2003 between Qatar Ferti-lizer Company (QAFCO), QIMC and UDC to produce Urea Formaldehyde Concen-trate with a design capacity of about 170 tons per day.

United Development Company (UDC) is a leading Qatari public shareholding company with a mission to identify and invest in long-term projects contributing to Qatar’s growth and providing good shareholder value.

QIMC has so far partici-pated in 20 industrial projects, most of them are in the production stages in var-ious industrial sectors, including petrochemical, chemical, construction and food. In addition, number of new projects are in the stage of incorporation.

The State of Qatar has given great importance to the need of private sector involvement in the economic development process in the country by investing in small and medium industries. This trend was evident in the establishment of the Qatar Industrial Manufacturing Company in 1990, in which the State shared 20% in equity.

Sri Lankan government honours Doha Bank CEOTHE PENINSULA

DOHA: Sri Lankan Embassy in Qatar in association with Sri Lanka Coordinating Committee organised a Cultural Programme on February 16 to mark Sri Lanka’s 70th Anniver-sary of Independence.

At this event, on behalf of the Sri Lankan Government, ASP Liyanage, Sri Lankan

Ambassador to Qatar presented “Award of Excellence” to Dr R Seetharaman, Doha Bank CEO in recognition of his services.

The Award was given for the support extended by Dr Seetharaman for promoting bilateral trade and investment relationships between Qatar and Srilanka. Doha Bank has been extending credit lines to SriLankan banks.

Just Real Estate offers investment opportunity in ‘Quasar Istanbul’THE PENINSULA

DOHA: Just Real Estate (JRE), the leading property service provider in Qatar, has expanded its over-seas portfolio with exciting investment opportunities for clients in the Quasar Istanbul project, a stunning mix-use development in heart of Turkey’s economic and cultural capital, and one of the world’s most iconic and cosmopolitan cities.

JRE is offering attractive pros-pect of owning a home within the sophisticated Quasar Residences, a luxurious, contemporary sky-scraper comprising impressive 1, 2 and 3-bedroom apartments, and home offices.

Alternatively, investors can purchase an ultramodern serv-iced apartment in Fairmont Res-idences, beautifully-styled 1, 2 and 3- bedroom apartments, which are located within the exquisite Fairmont Istanbul Hotel tower.

“As a leading property service provider, we fully utilize our

extensive market knowledge and understanding, and wide-ranging trusted networks, to deliver unmatched investment opportu-nities to our clients. We are con-fident the Quasar Istanbul project ticks all the right boxes for inves-tors seeking exciting ventures in one of the world’s most vibrant real estate markets,” said Nasser Al-Ansari, JRE Chairman.

“Istanbul is a well-established property market and will con-tinue to be a sought-after desti-nation, driven by the continuous public and private sector invest-ment in real estate and associated infrastructure. Real estate trends are shifting more towards expe-rience, destination and lifestyle. This really is a unique opportu-nity, the chance to own a home in a hotel, right in the heart of a truly world city, with great poten-tial for high rent returns.”

The unique opportunity pre-sented by Quasar Residences is reflected in the interior design of the apartments. Paying tribute to the project’s location in this truly

global city, the unfurnishedprop-erties are fitted with the latest, modern amenities and are avail-able in a choice of three themes: Cultural Mood, Cosmopolitan Mood or Natural Mood, offering distinctive touches in the flooring, walls and ceilings to reflect the theme.

The Residences offer spectac-ular views of historic Istanbul and sweeping vistas of the famous Bosphorus River. The entrance lobby, designed by the flam-boyant, renowned Dutch interior designer and art director Marcel Wanders, is also something to savor. The opportunities in Fair-mont Residences include fully-furnished 1, 2 and 3 bedroom, serviced apartmentsavailable in a choice of two styles – New York or Paris – each one styled with the authentic look and feel of the iconic cities they are named after.

Living in Quasar Istanbul gives you access to the 5-star Fairmont Istanbul Hotel’s high-end facilities and amenities, such

as the refined Tea Parlour, laid-back all-day dining restaurant, state-of-the-art meeting facili-ties and ballroom, the peaceful Gold Lounge and the hotel’s spa – a haven of tranquility in the bustling metropolis of Istanbul.

Residents also have access to a beautiful suspended oasis, in the form signature Podium Sculp-ture Garden and Podium Infinity Pool deck, both created by the enigmatic Wanders.

Fairmont Residences offers

the extra benefit for investors seeking to enhance their over-seas portfolio, with a 5 percent rent guarantee, and the option to stay in the property for 28 days per year during a lease period.

A distant view of ‘Quasar Istanbul’ project in Turkey.

The policyholders’ Surplus registered more than 100% growth and increased to QR16.2m in 2017 compared to QR7.9m in 2016.

Sheikh Abdullah bin Thani Al Thani (left), QIIC Board of Directors Chairman; and Ali Ibrahim Al Abdulghani, CEO of Qatar Islamic Insurance.

Qatar Chamber Director General Saleh bin Hamad Al Sharqi (right) with heads of joint Arab -Turkish Chambers.

Oglu highlighted the importance of neu-tralising economic cooperation from any political differences between countries, saying that industrial exports accounted for 92% of the total Turkish exports, half of which are exported to Europe at the moment.

Trade volume between the Arab

countries and Turkey recently

saw growth, reaching nearly $50bn annually

19MONDAY 19 FEBRUARY 2018 BUSINESS

Air-France KLM announces 2017 financialsJean-Marc Janaillac (second right), CEO of Air France-KLM Group, speaks with Franck Terner, CEO of Air France; while announcing the airline’s 2017 annual results in Paris, France.

QAFCO, Hassad and Yara sign MoUTHE PENINSULA

DOHA: Qatar Fertiliser Company (QAFCO), Hassad Food and Yara International ASA (Norway), signed a Memo-randum of Understanding (MoU) recently to support efforts to increase food production from the Qatari agricultural sector.

The partnership will focus on increasing agricultural yields, in line with Qatar’s aim to achieve self-sufficiency in a reli-able and sustainable manner.

Said Mobarak Al Mohannadi, Chairman – QAFCO Board of Directors, Mohamed bin Badr Al Sadah, Chief Executive Officer of Hassad Food and Svein Tore Holsether, President and Chief Executive Officer of Yara Inter-national ASA, jointly signed the memorandum on behalf of the three companies.

The ceremony was held in the presence of Saad Sherida Al Kaabi, the President and CEO of Qatar Petroleum.

Al Mohannadi commented: “Today marks an important milestone in the history of QAFCO, YARA and Hassad Food, being part of an ambitious

initiative to support Qatar’s food security objectives.”

We are confident that this project shall prove to be one of the contributors towards the development of the Qatari agri-cultural sector and strengthen existing relations between the three entities,” he said.

Al Sadah said:“It’s our pleasure to be part of such a great partnership, Hassad, as Qatar’s premier investor in food and agribusiness sectors, aims to continuously support the local agricultural sector. We are com-mitted to provide the needed support to the two esteemed entities, to assist in increasing the local production from high quality food products.”

“Yara is proud to have been a partner to the state of Qatar

for nearly 50 years through our shareholding in QAFCO, and today’s signing marks another important step in our continued commitment to this collabora-tion. With our vast experience in providing balanced crop nutrition, we support farmers worldwide to increase yields and improve the quality of pro-duce. We sincerely look forward to contribute with our products, solutions and knowledge in the Qatari agricultural sector, in col-laboration with our two part-ners,” said Holsether.

The memorandum formal-ises ongoing efforts by the three entities to support the State of Qatar’s goal of food security.

Over the past months, the entities have already engaged in workshops and farm tests

together with several farmers to lay the foundation for a suc-cessful outcome. Over the

coming months, several test projects will be carried out on several farms to demonstrate

the yield potential and create best practices for the agricul-tural sector of Qatar.

FROM LEFT: Abdulrahman M Al Suwaidi, CEO of QAFCO; Svein Tore Holsether, President and Chief Executive Officer of Yara International ASA; Saad Sherida Al Kaabi, the President and CEO of Qatar Petroleum; Said Mobarak Al Mohannadi, Chairman - QAFCO Board of Directors and Mohamed bin Badr Al Sadah, Chief Executive Officer of Hassad during the MoU signing ceremony.

The partnership will focus on increasing agricultural yields, in line with Qatar’s aim to achieve self-sufficiency in a reli-able and sustainable manner.

The MoU formalises ongoing efforts by the

three entities to support Qatar’s goal of

food security.

Turk Eximbank eyes more global cooperationANADOLU

ISTANBUL : Turk Eximbank has stepped up its road shows to raise medium- and long-term financing to support Turkish exporters.

Adnan Yildirim, the bank’s CEO, told Anadolu Agency that he was going to hold a number of road shows in the U.S. and Europe along with Asia.

“We’re carrying on work with banks and financial insti-tutions from several countries, especially Japan, and also China, the European region, and the US, in order to provide medium- and long-term funding,” Yildirim said.

Yildirim added that road show programs in New York, Boston, and Los Angeles are set to start on Feb. 21.

“After the US programme, we plan another road show program for European coun-tries who are important sources for us to find funds,” he said.

Turk Eximbank expects to raise opportunities for direct funding, to increase bilateral trade, and to pave the way for Turkish firms’ joint programs in the Asia and Africa regions, through agreements, he stressed.

Citing the bank’s recent agreements with its counter-parts in Britain, France, Bel-gium, and Thailand, Yildirim said the bank plans to do more cooperation with Asian coun-tries in the coming days and negotiations continue to reach new pacts with Hungary, Indo-nesia, Denmark, and China among the others.

Turk Eximbank planned and realized several activities with Japan such as an agree-ment with Japan’s credit insur-ance and guarantee institution NEXI, and a road show pro-grams with Mizuho Bank, Bank of Tokyo Mitsubishi, nearly 30 Japanese lenders and financial institutions last year, he stated.

“I hope to see its positive results this year,” he said.

Turk Eximbank and the Japan Bank for International Cooperation JBIC on Friday signed a memorandum paving the way for investors and exporters of the two countries to collaborate in current and potential markets.

He also said the bank has

an important role in supporting Turkey’s efforts in Africa, adding:

“We also did work with Sudanese public institutions and the private sector to boost trade between the two countries.”

Underlining that the bank supported Turkey’s exports with $39.3bn in 2017, fully 25 percent of the country’s exports, Yildirim said: “We aim to raise this support 17 percent to reach $46bn in 2018, or 27 percent of Turkey’s exports.”

Turk Eximbank hopes to approach or surpass South Korea Eximbank’s performance in 2018, he stressed, adding:

“At least we are deter-mined to realize our 27 percent target by the end of this year.”

After South Korea’s Eximbank, Turk Eximbank ranks number two in the world in terms of the rate of financing exports. He explained that the bank gathers all services under a single roof while other coun-tries have more than one insti-tution providing these services.

“The bank distinguishes itself from other eximbanks by supporting all necessities including direct finance, insur-ance, guarantees, and letters backing exporters and project firms. The bank aims to make Turkish firms more competi-tive in the country’s region, Middle East, and Asia,” he said.

Since Turk Eximbank was founded in 1987, it conducts international credit, guarantee, and credit insurance programs aimed at developing economic and political relations between Turkey and other countries.

Turk Eximbank and the Japan Bank for International Cooperation signed a memorandum paving the way for investors and exporters of the two countries to collaborate in current and potential markets.

After growth streak, Amazon ambitions seem boundlessAFP

SAN FRANCISCO: Triumphant in online retail, cloud computing, organic groceries, and streaming television, Amazon founder and chief disruptor Jeff Bezos is turning his seemingly limitless ambition to health care.

Amazon, launched as an internet bookseller nearly 24 years ago, has branched into offerings including voice-com-manded speakers infused with Alexa artificial intelligence and original TV shows streamed online at its Prime subscription service.

Health care now appears ripe for Bezos, who has earned a reputation for attacking high costs and inefficiencies.

A possible step in that direc-tion was taken last month, with Amazon announcing an alliance with billionaire Warren Buffett and JPMorgan Chase chief exec-utive Jamie Dimon to provide a health care system for employees of the three companies.

According to the Wall Street Journal, Amazon would also like to become a supplier of medical equipment for hospitals.

“I think Bezos is methodical and thoughtful,” eMarketer senior analyst Patricia Orsini told AFP.

“He has identified a market that is ready for disruption. The healthcare system in the US is

ripe for reform.” Bezos faces the challenge of taming skyrock-eting costs throughout US health care from insurance and med-icine to supplies and therapy.

“Just as with every other industry Amazon has entered, Bezos is envisioning lower-priced alternatives with friction-less services that could, over time, make a lot of money for Amazon,” Orsini said.

Barclays analysts said in a recent research note on Ama-zon’s potential in health care, “We are never dismissive of anything disruptive that Amazon is involved in. Amazon arguable has the best technical abilities of any company we cover.”

Amazon has been on a stun-ning growth streak of late, expanding its international retail operations as far as India and Australia, while devouring the US organic supermarket Whole Foods group.

With increased scale, it has been ramping up profits in recent quarters, helping Amazon leapfrog in market value to one of the top companies in the world and making Bezos the world’s richest individual with a net worth well over $100bn.

Amazon has repeatedly shaken up sectors with tech-nology and efficiency.

With success has come lev-erage to pressure suppliers and manufacturers for better deals it can use to be the preferred venue for online shopping.

Standard & Poor’s retail analyst Robert Shulz noted that Amazon has succeeded with a patient strategy of investing for the long term.

“Their approach is growing the business,” Shulz said, even if some of the efforts don’t yield a quick profit.

For years, Amazon invested heavily in distribution networks so it could get goods to buyers fast while controlling delivery costs.

A report surfaced this month that Amazon is preparing to test a delivery service that would compete directly with services like Fedex and UPS.

Amazon did not directly comment on the report but said, “We’re always innovating and experimenting on behalf of cus-tomers and the businesses that sell and grow on Amazon to create faster lower-cost delivery choices.”

Separately, Amazon this month unveiled plans to deliver groceries in a number of US cities for Prime subscribers using its recently acquired Whole Foods supermarket chain.

It is the first major effort to integrate Whole Foods -- a chain of 460 stores -- into Ama-zon’s e-commerce effort.

Bezos, whose personal investments have included buying the Washington Post, has been referred to as the “ultimate disruptor” with a long-term

view that only recently has begun to yield hefty profits.

Amazon recently reported its profits had more than dou-bled in the past quarter to $1.9bn as revenue grew 38 percent to $60.5bn.

But Amazon has been vili-fied for trampling on traditional practices at home and abroad. It also earned a reputation for high-pressure work conditions to minimize costs in ware-houses, and a sometimes diffi-cult corporate culture for executives.

Its search for a new “HQ2” or second headquarters mean-while has set off an intense com-petition among cities desperate for the estimated $5bn invest-ment, drawing comparisons to the dystopian “Hunger Games” story.

Amazon’s pattern of success has caused fear to ripple through sectors it eyes.

When Amazon last year made the surprise buy of Whole Foods, shares sank of major retail chains Wal-Mart and Target. S&P Global Ratings said in a research note that Amazon “has brought price transparency and convenience to many retail segments,” while shifting con-sumer expectations, thus cre-ating problems for rivals.

“Legacy retailers are in var-ious stages of adapting to the new landscape and not all have been successful,” the analysts said.

Judge approves Takata bankruptcy planAP WILMINGTON: A Delaware judge has approved the bank-ruptcy reorganization plan submitted by Japanese auto-parts supplier Takata.

Following a hearing on Friday, the judge said there was substantial and sufficient support from creditors to merit plan approval.

The ruling comes after Takata reached a settlement last week with creditor groups representing current and future victims of the company’s lethally defective air bags, whose claims will be handled by a trust. Takata was forced into bankruptcy last year amid lawsuits, mul-timillion-dollar fines and crushing recall costs involving air bag inflators.

20 MONDAY 19 FEBRUARY 2018BUSINESS

UK govt urged to cut rate on student loansREUTERS

LONDON: The British govern-ment should cut the interest rate it charges on loans to English students, and statisticians should review why the cost of hefty write-offs barely figures in official borrowing data, a parliamentary committee said yesterday.

University tuition fees in England are high compared with elsewhere in Europe at around £9,000 ($12,640) a year, and the opposition Labour Party gained support from students in May 2017’s election with a pledge to try to reduce their debts.

Student loans taken out since 2012 charge a variable interest rate that is 3 percent-age points higher than the prevailing rate of retail price inflation (RPI), taking the cur-rent interest rate to 6.1 percent.

The British parliament’s Treasury Committee said in a report to the government ahead of a review of university financ-ing that the use of RPI as a benchmark was unfair, and the 3 percentage point premium introduced in 2012, was hard to justify.

“The government must reconsider the use of high inter-est rates on student loans,” Nicky Morgan, the Conservative chair of the cross-party commit-tee, said.

The committee was partic-ularly critical of the use of RPI

as a benchmark for the loans, which statisticians say over-states increases in the cost of living.

BoE Governor Mark Carney told the committee earlier in the month that the government should phase out contracts tied to RPI, which is also used to cal-culate interest payments on index-linked government bonds.

The committee also criti-cised the student loan system for disguising the true amount of p u b l i c s p e n d i n g o n universities.

Unlike normal loans, stu-dent loans need not be repaid until the borrower earns more than £21,000 a year - rising to £25,000 in April, just under the average full-time wage. After 30 years, any balance is written off.

The government told the committee that 45 percent of the total amount borrowed, includ-ing interest, was likely to be

written off - up from an estimate of 35 percent before the increase in the repayment threshold last year.

Recently, the government has begun to sell loans on to the investors at an apparent loss, offloading debt with a face value of £3.5bn for £1.7bn in December.

The committee said this did not provide clear value for money. “The government may be better off keeping student loans on its own balance sheet, rather than shifting the risks to the private sector and paying a large premium for doing so.”

However, selling the loans does lower the headline meas-ure of public-sector net debt targeted by finance minister Philip Hammond, while at the same time stopping future write-offs from showing up in the main measure of public-sec-tor net borrowing.

“Selling off student loans prior to their write-off allows the government to spend bil-lions of pounds of public money without any negative impact on its deficit target at all, creating a huge incentive for the govern-ment to finance higher education through loans,” the committee said.

Given this, Britain’s Office for National Statistics should look at whether some of the lending should instead be treated as spending that would show up in government borrow-ing data, the committee said.

Munich Security ConferenceAirbus Chief Executive Tom Enders (left) and Siemens CEO Joe Kaeser attend the Munich Security Conference in Munich, Germany.

Careem acquires Middle East online restaurant listing platformREUTERS

DUBAI: Careem, a Middle East competitor to Uber Technolo-gies, said on Sunday it had acquired RoundMenu and would start trialing food deliv-ery services through the restaurant listing and reserva-tion online platform this month.

The ride hailing firm acquired the website and app

for an undisclosed sum. “Car-eem will begin testing a delivery capability for Round-Menu customers on a small scale later this month,” it said in a statement to Reuters.

There is demand for deliv-ery services in the Middle East, particularly in the Gulf Arab states where temperatures can soar above 50 degrees in the summer.

Several food delivery

companies, including Talabat, Zomato, UberEats, and Deliveroo, are active in the region.

RoundMenu has raised $3.1m in funding since it launched in 2012, the Careem statement said.

Careem said in June it would accelerate expansion plans after raising $500m from investors, including German carmaker Daimler

Long Blockchain faces delisting again, despite name changeBLOOMBERG

PORTLAND: Long Blockchain Corp. is poised to be delisted, a fate the iced-tea company temporarily avoided by jump-ing in on the cryptocurrency craze.

The unprofitable beverage maker formerly known as Long Island Iced Tea Corp. got a notice that its shares would be removed from the Nasdaq, according to a filing Friday.

Its market value has dropped back below the exchange’s $35m threshold after surging in December, when the company announced it was acquiring 1,000 bitcoin-mining machines and changing its name.

Even if an appeal is

granted, Long Blockchain will have to maintain its market value at $35m or more for at least 10 business days to remain listed after April 9 -- or face the possibility of delisting again.

At Friday’s close, the com-pany’s market cap was $33m, down by more than half from December, as bitcoin’s price tumbled.

Long Blockchain wasn’t the first to use blockchain as an antidote for lackluster stock returns, and it’s not the only one that’s come crashing down to Earth along with bitcoin’s decline.

Riot Blockchain Inc., a former biotech company, sank Friday on a CNBC report that its crypto-rebranding was done to enrich its owners.

China flooded US with solar panels before new tariffsBLOOMBERG

NEW YORK: Chinese suppliers flooded the US solar market with panels at the end of last year, as customers sought to avoid paying President Donald Trump’s 30 percent import tariff.

Fourth-quarter deliveries from China were almost 11 times higher than in the first nine months of 2017, according to report Friday by Bloomberg New Energy Finance. Manufacturers also hauled panels and cells across the border from Mexico, Canada and other countries to beat the import duties that were announced last month.

The tariffs don’t apply to the first 2.5 gigawatts of imports this year, and there’s as much as 5 gigawatts of solar equipment already stashed in warehouses and ports around the country. That’s enough to supply US developers for about six months, said Hugh Bromley, a solar ana-lyst at New Energy Finance,

undermining the impact of the protectionist policies on manu-facturers. Shipments from exempt suppliers including First Solar Inc. may extend that period to nine months.

“The slow pace of D.C. bureaucracy has allowed the

solar industry to insulate itself from the full impact of the tar-iffs,” Bromley said in an interview.

“They won’t be as damaging as some in the industry have warned.”

The tariffs announced in

January came in response to a trade suit filed in April 2017 by a bankrupt US solar manufac-turer that argued it had been harmed by a wave of cheap imports, mostly from Asia. The US International Trade Commis-sion agreed in October, paving the way for Trump’s decision.

SunPower Corp., the sec-ond-biggest US solar supplier, manufacturers most of its prod-ucts in Mexico and Asia, and rushed to bring them into the country at the end of last year. The stockpiled inventory will help the San Jose, California-based company buy time as it pursues a request to be excluded from the duties because it uses a technology that’s different from standard photovoltaic panels.

“Of course we accelerated” shipments, Chief Executive Officer Tom Werner said in an interview. “We’re not going to pay tariffs on goods that we already brought to the US.”

Puerto Rico to reduce power generation amid cash shortfallAP

SAN JUAN: Puerto Rico’s elec-tricity utility said on Friday it will dial down the power generation starting this weekend as a federal control board urgently seeks a $300m loan for the troubled util-ity after a judge rejected a previous $1bn loan request.

The announcement comes as nearly 400,000 power custom-ers across the island remain in the dark more than five months after Hurricane Maria hit the island, causing the longest blackout in US history.

Ernesto Sgroi, president of the governing board of Puerto Rico’s Electric Power Authority, said the reduction in power generation would start Sunday and was not expected to interrupt service. But he warned it could destabilize a power grid still being repaired after it was heavily damaged by Maria.

“Without the loan, and given

the potential risk to its operations, we have no other responsible option than to begin implement-ing a limited operational emergency plan,” Sgroi said. “We fear this setback will result in the exacerbation of human hardship as potable water, power for med-ical procedures, communications, and open schools are at risk of disappearing again.”

Officials did not provide fur-ther details, including by how much generation would be low-ered and which units would be targeted. Power company spokesman Geraldo Quinones did not immediately return a request for comment.

Before dawn Friday, the con-trol board filed the scaled-back loan request and said Puerto Rico will have to further reduce power generation and personnel if it does not obtain the funds by tomorrow. It also said that the power authority is in jeopardy and that $300m would allow the

utility to operate only until late March, which it warned would leave “many customers” without power. A federal judge found Thursday that neither the board nor government officials provided sufficient evidence to prove the power company needed a $1bn loan, despite warnings the US ter-ritory would have to start rationing electricity.

Gov. Ricardo Rossello (pic-tured), who was in Philadelphia on Friday, called on the US Treas-ury Department to release a separate billion-dollar loan that Congress approved in October for disaster recovery efforts as offi-cials warn the Puerto Rican government is running out of money.

“This is an urgent situation,” he said. “If the power goes out in Puerto Rico, if there’s an inabil-ity to buy fuel, it is a humanitarian crisis.”

Opposition legislator Jesus Manuel Ortiz said Puerto Rico’s

current administration lacked credibility since it wasn’t able to convince the judge it needed the $1bn loan. He condemned threats of rationing electricity.

“The uncertainty of imple-menting selective blackouts in Puerto Rico, while ... clients are still in the dark and when the rest of the island is starting to see a bit of normalcy, is devastating,” he said. Ortiz also demanded that Rossello publicize revised fiscal plans for the power company, in

addition to its water and sewer agency. On Friday, the control board announced that it was still reviewing those plans, along with Puerto Rico’s overall fiscal plan, and that it had extended a dead-line to approve them by more than a month.

Just hours before the board filed its latest loan request, the power company announced it was reducing employee working hours from seven to five days a week for safety reasons. It is unclear how that measure will impact power-restoration efforts across the island, and union leader Angel Figueroa did not immediately respond to a request for comment.

The board also said in its fil-ing that it would seek an additional large loan in the next two to four weeks to help keep the power company running. Board members and Puerto Rico government officials said they would meet with a group of

creditors later Friday, although they did not provide any details.

On Wednesday, a group of creditors offered a $534m com-peting loan that the government has not accepted. Puerto Rico’s power company is already $9bn in debt and operating with infra-structure that is nearly three times older than the industry average. The US territory suffered frequent blackouts even before the hurricane, including an island-wide power outage in 2016.

Given the dire situation, Gov. Ricardo Rossello announced last month that he plans to privatize the company in the next 18 months.

Company director Justo Gonzalez said on Friday that power restoration efforts are ongoing and that work was com-pleted on a key transmission line of 230,000 volts that would pro-vide more stability to the damaged grid.

The Treasury Committee was particularly critical of the use of RPI as a benchmark for the loans, which statisticians say overstates increases in the cost of living.

A worker seen inspecting solar panels in this file picture.

21MONDAY 19 FEBRUARY 2018 BUSINESS

Italo accepts GIP’s takeover offerA ITALO-NTV (Nuovo Trasporto Viaggiatori) halts at Napoli Centrale railway station in Naples. The shareholders of Italian railways group ITALO have accepted a ¤1.8bn takeover offer by US based fund GIP (Global Infrastructure Partners).

Seeking post-Brexit unity, EU heads find more fightsAFP

BRUSSELS: EU leaders face difficult talks this week on the thorny issues of how to plug holes in the post-Brexit budget and choose a successor for Euro-pean Commission chief Jean-Claude Juncker.

A special one-day summit in Brussels on Friday of the 27 leaders without Britain is meant to be a key step in the roadmap to a leaner and more unified bloc after Britain leaves in just over a year.

But cracks have already appeared between French Pres-ident Emmanuel Macron, leading the charge for a reformed Europe, and Juncker with his federalist vision of how top EU officials should be chosen in future.

The row means the EU’s attempts to overcome the shock of losing a major member are running into the classic problems that have bedevilled it for its six decades of existence: money and sovereignty.

Juncker was picked after European elections in 2014 by a controversial “Spitzenkandidat” system -- German for “lead can-didate” -- under which the polit-ical group with the most votes gets to nominate its candidate for the job.

Both the European Parlia-ment and Juncker back a repeat

after the May 2019 European election, saying it gives the public a direct say in who heads the commission, the EU’s powerful executive arm.

European Council President Donald Tusk -- who coordinates summits and represents the EU member states -- is expected to lay out options at the summit, including whether to continue with the Spitzenkandidat system.

Leaders are expected to say it is their own “right and obliga-tion” to choose the commission chief, while “taking into account” the views of parliament, as the EU treaties state, an EU source told AFP.

Many national leaders are bitterly opposed to the Spitzenkandidat process, saying it sidelines democratically elected heads of government in favour of a backroom deal by

Brussels-based political parties, and also makes the job of com-mission chief too political.

Macron this week slammed the Brussels establishment as ideologically incoherent and called for a “political revamp” to give the commission a clear mandate, defined by the national leaders.

Juncker however said ear-lier this week that the Spitzenkandidat system was “completely logical”. He also called for the commission chief’s job to be merged with Tusk’s.

The row has become partic-ularly fierce after the European Parliament earlier this month dealt Macron a slap by voting against “transnational lists” -- which would allow 30 of the 73 seats vacated by Britain to be elected on pan-European tickets, instead of directly to constituen-cies. “Why should we have Spitzenkandidaten if we have no transnational list for elections?!” Luxembourg Prime Minister Xavier Bettel tweeted.

Filling the hole that Brexit leaves in the EU’s multi-year budget from 2020 threatens to open up even deeper divisions -- but this time between member states themselves.

Tusk will ask the leaders at the summit whether they want to increase the budget, decrease it or keep it the same, sources said.

EU Budget Commissioner Guenther Oettinger has said that Britain’s exit could leave a hole of as much as between ¤12bn and ¤15bn ($15-19bn) and sug-gested that contributions be increased to between 1.1 percent and 1.2 percent of GDP from the current level of one percent of GDP in the 2014-2020 budget.

The Netherlands, Denmark, Austria, Sweden and Finland, all net contributors, are said to be against that idea.

Warnings by Oettinger of cuts on agriculture -- a bugbear for France -- and “cohesion funds” that benefit poorer eastern European states are also likely to go down badly.

But there is little appetite for suggestions that the EU could try to bring countries like Poland and Hungary into line on issues including the rule of law and migration by making cohesion funds “conditional” on good behaviour.

With these tensions in the background it is no surprise that the EU has been stressing the need for unity in Brexit talks with Britain. Tusk is expected to ask leaders if they want to push ahead next month with issuing negotiating red lines on a post-Brexit future relationship with Britain.

Uncertainty over Britain’s wishes, and difficulties in nego-tiations on a post-Brexit transi-tion period, could push that back.

European Commission President Jean-Claude Juncker (left) and EU Commissioner Guenther Oettinger seen addressing a joint press conference at the European Commission in Brussels, in this file picture.

Latvian central bank governor detainedAFP

RIGA: Anti-corruption authorities in latvia arrested the governor of the country’s central bank, Ilmars Rimse-vices (pictured), the govern-ment said on Sunday, but there is “no sign of danger” to the financial system.

Rimsevices, who was appointed governor in 2001, was detained by officers from the Corruption Prevention Bureau (KNAB) on Saturday and questioned for seven hours before being taken to another location on Sunday, according to a journalist from the Baltic News Agency (BNS).

Local media said anti-corruption officers also staged raids at the governor’s residence and at his offices at the Bank of latvia.

latvian Prime Minister Maris Kucinskis confirmed the arrest and said there is currently “no sign of danger for the latvian financial system”.

“For now, neither me (as prime minister) nor any other official has any reason to interfere in the work of the KNAB. The office (KNAB) is working professionally,” Kucinskis told BNS, the latvian news agency.

“When KNAB considers it possible to give additional information to the public, it will do so,” he added.

As latvia is part of the euro area, Rimsevices is also a member of main body of the European Central Bank (ECB), known as the Governing Council, composed of the 19 governors of the eurozone.

The government is due to hold an emergency cabinet meeting tomorrow.

Roche pays $1.9bn for FlatironBLOOMBERG

NEW YORK: Roche Holding AG will buy Flatiron Health Inc. and its cancer-focused medical records technology for $1.9bn, as drugmakers increasingly mine data to develop new oncology treatments.

The Swiss oncology giant already owns 12.6 percent of closely held Flatiron, which is also funded by Google parent

Alphabet Inc., the companies said. The company was founded by Nat Turner and Zach Wein-berg, who sold an ad tech busi-ness to Google almost a decade ago.

Drugmakers and the insurers that decide whether therapies will be reimbursed are looking for evidence to guide both the development of new products and the use of treatments after they’re

approved. Flatiron allows doc-tors and researchers to comb through medical records, including gene sequences and insurance claims, to research the effectiveness of various approaches.

In 2016, Roche led a $175m round of funding for New York-based Flatiron, which has raised more than $300m from investors such as Alphabet and First Round Capital.

Next Nafta talks to start with auto content rulesBLOOMBERG

MEXICO CITY: Rules for auto-motive content, one of the most contentious issues in Nafta, will be among the first tackled at the upcoming seventh round of talks in Mexico City.

Negotiators from the US, Canada and Mexico plan to begin on rules of origin, which govern how much geographic content a product must have to benefit from Nafta tariff exemp-tions, on February 25, according to a draft agenda. The issue is set to receive more than 20 hours of discussion, among the most of any topic, according to the schedule, which isn’t released publicly because talks are held behind closed doors.

In a bid to revive US facto-ries, the White House has pro-posed raising the regional auto-motive rules of origin for passenger cars to 85 percent from 62.5 percent and add a US-specific requirement of 50 percent. The US says the changes are needed to reduce a trade deficit with Mexico that it says is the result of compa-nies moving factories and jobs south of the border to take advantage of cheaper labour.

Automakers warn the pro-posals would upend supply chains. Canada at the last nego-tiating round in Montreal put forward some fresh ideas on how to calculate the value of regional content in vehicles, including giving more credit for driverless and electric cars, plus research and development work. US Trade Representative Robert Lighthizer called the Canadian proposal on cars “vague,” and argued it would reduce the share of a vehicle made within the region.

While Mexico’s automobile association, known as AMIA, has said it opposes a higher content rule for cars, Economy Minister Ildefonso Guajardo has signaled a recognition that the rules probably will need to be strengthened to reach a deal.

The US, Mexico and Canada began renegotiating the North American Free Trade Agree-ment in August at the initiative of President Donald Trump, who has promised to negotiate a better deal for America or withdraw. Talks, organized into rounds, have rotated between Washington, Mexico City, Ottawa and Montreal over the past six months.

Avis hit with proxy battle as top investor blasts boardBLOOMBERG

SOUTHFIELD: Avis Budget Group Inc’s top shareholder kicked off a proxy battle with the rental-car company’s board, citing its failure to meet finan-cial targets and prepare the company for the transformation of the auto industry.

SRS Investment Manage-ment LLC nominated three new directors and said Chairman Ronald Nelson, a former Avis chief executive officer, should be replaced. The New York-based hedge fund, which owns almost 15 percent of Avis’s shares, said its board comprised mostly of current and past Avis executives and long-tenured directors needs to be shaken up.

“For nearly a decade, no movement has been made to refresh the legacy board despite the substantial change occur-ring in the mobility industry,” SRS said in a statement. Avis’s lead director Leonard Coleman said in response that manage-ment was disappointed to be “engaged in a costly and dis-tracting proxy fight.”

Avis and rival Hertz Global Holdings Inc are being pres-sured by the rise of the ride-hailing model championed by Uber Technologies Inc and Lyft Inc Automakers including Gen-eral Motors Co also are experi-menting with car-sharing pro-grams that compete with Avis’s Zipcar. These services are b e c o m i n g l e g i t i m a t e

alternatives for the business travelers and tourists that are rental companies’ core customers.

Avis has offered SRS more board representation and has clued the investor in on its process of selecting new direc-tors. The company is searching for candidates with technology experience to replace retiring board members, Coleman said.

“It’s an old, stale board,” Hamzah Mazari, an analyst with Macquarie Capital Inc in New York, said in a phone interview. “We think SRS wants Avis to get more tech savvy with connected cars. Our sense is they want someone from Google or Amazon on the board.”

Tension between Avis and

SRS has been building for more than a year. Avis adopted a plan in January 2017 that the com-pany said would allow it to keep buying back stock while guarding against SRS taking control of the company. It’s returned more than $1.3bn to investors since 2012 by repur-chasing shares.

SRS agreed to a standstill provision in May that would keep the hedge fund from acquiring more stock.

Then, after months of Avis shares getting pounded by con-cerns about sagging used-vehicle prices hurting rental-car profits, the company struck a deal with Waymo -- the unit of Google parent Alphabet Inc. -- to manage a fleet of self-driving

Chrysler minivans, spurring a rebound. But the stock recovery, and efforts Avis has made to respond to disruptive threats by connecting its rental fleet with a mobile app, haven’t been enough to keep the peace.

On Jan. 15, Avis announced it had offered SRS an additional board seat and a chance to have input in the process of selecting directors.

SRS refused and asked for veto over any board changes and leadership decisions, as well as the ability to significantly increase its voting power. Avis responded by adopting a share-holder rights plan that prevents SRS from obtaining control of the company without paying a premium.

Filling the hole that Brexit leaves in the EU’s multi-year budget from 2020 threatens to open up even deeper divisions -- but this time between member states themselves.

22 MONDAY 19 FEBRUARY 2018BUSINESS

QATAR STOCK EXCHANGE

QE Index 9,079.43 0.57 %

QE Total Return Index 15,329.37 0.57 %

QE Al Rayan Islamic Index - Price 2,393.57 0.61 %

QE Al Rayan Islamic Index 3,696.26 0.61 %

QE All Share Index 2,530.17 0.62 %

QE All Share Banks &

Financial Services 2,860.57 0.17 %

QE All Share Industrials 2,791.62 1.30 %

QE All Share Transportation 1,928.24 0.88 %

QE All Share Real Estate 1,781.08 0.72 %

QE All Share Insurance 3,266.33 1.51 %

QE All Share Telecoms 1,044.95 0.60 %

QE All Share Consumer

Goods & Services 5,402.53 0.12 %

QE INDICES SUMMARY QE MARKET SUMMARY COMPARISON WORLD STOCK INDICES

GOLD AND SILVER

18-01-2018Index 9,079.43

Change 51.72

% 0.57

YTD% 6.52

Volume 7,018,500

Value (QAR) 169,696,958.81

Trades 2,264

Up 30 | Down 09 | Unchanged 215-01-2018Index 9,027.71

Change 32.96

% 0.36

YTD% 5.92

Volume 7,296,278

Value (QAR) 287,331,548.56

Trades 2,966

EXCHANGE RATE

GOLD QR155.4912 per grammeSILVER QR2.0157 per gramme

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

All Ordinaries 6205.9 -35.6 -0.57 6254.1 6141.4

Cac 40 Index/D 5504.66 -19.28 -0.35 5525.67 5258.66

Dj Indu Average 25385.8 102.8 0.41 25439.78 19677.94

Hang Seng Inde/D 31073.72 62.31 0.2 31056.7 30028.29

Iseq Overall/D 7078.06 -100.86 -1.4 7223.07 7021.69

Kse 100 Inx/D 43630.74 816.4 1.91 43256.57 40169.62

S&P 500 Index/D 2751.29 3.58 0.13029 2748.51 2682.36

Currency Buying SellingUS$ QR 3.6305 QR 3.6500

UK QR 4.9069 QR 4.9751

Euro QR 4.4770 QR 4.4058

CA$ QR 2.8739 QR 2.9685

Swiss Fr QR 3.8855 QR 4.00360

Yen QR 0.0324 QR 0.03303

Aus$ QR 2.8484 QR 2.9496

Ind Re QR 0.0561 QR 0.0575

Pak Re QR 0.0334 QR 0.0334

Peso QR 0.0690 QR 0.0713

SL Re QR 0.0235 QR 0.0239

Taka QR 0.0434 QR 0.0443

Nep Re QR 0.0355 QR 0.0362

SA Rand QR 0.3082 QR 0.3258

China may hit back if US puts tariffs on steelBLOOMBERG

SHANGHAI: China said proposed US tariffs on imported steel and aluminum products are groundless and that it reserves the right to retaliate if they are imposed.

The US recommendations, unveiled by the Commerce Department on Friday, aren’t consistent with the facts, Wang Hejun, chief of the trade remedy and investigation bureau at Chi-na’s Ministry of Commerce, said in a statement posted on its website.

Commerce Secretary Wilbur Ross said the US may impose quotas on imports of aluminum and steel, including a tariff of at least 24 percent on steel imports from all countries. While it’s the strongest indication yet that President Donald Trump’s administration is ready to take action on its protectionist agenda, Ross said “it wouldn’t surprise us” if the measures were challenged. The US already has excessive protections on domes-tic iron and steel products, according to Wang.

“If the final decision impacts China’s interests, China will cer-tainly take necessary measures to protect its own rights,” Wang said.

American steel companies and steelworker unions have

been pushing Trump to follow through on his promise to pro-tect the industry. China’s trade partners have complained for years that its industry unfairly benefits from state subsidies, and dumps its products at below-market prices. While China only accounts for about 1 percent of US steel imports, it could chal-lenge US action at the World Trade Organization, a process that could take years.

China has long been at the epicenter of global over-produc-tion of steel. But the trade dynamics are shifting as alumi-num exports take center stage. In January, China boosted its shipments of the lightweight metal for a third month, as domestic supplies spill overseas, while steel cargoes shrank to the lowest in nearly five years as strong domestic growth mops up production and environmental curbs trim capacity.

Rather than tariffs on all imports, Trump may opt for a more “surgical” approach, Ross suggested at a meeting with law-makers this week. On steel, for example, the president could go with the recommended option that would levy a tariff of 53 per-cent on imports from 12 countries - a list that includes China, Russia, India and South Korea - but allow exemptions for allies such as Japan, Germany

and Canada. South Korea’s trade ministry

met with local steelmakers Satur-day and later issued a statement saying it will reach out to the US before America makes a final decision on tariffs to minimize any impact on its exports.

Japan is viewing this as more of a security issue, said Yasuji Komiyama, director of the metal industries division at Japan’s Min-istry of Economy, Trade and Industry. The Commerce Depart-ment may invoke a seldom-used section of the 1962 Trade Act, which allows the president to impose tariffs without congres-

sional approval. Komiyama said steel and alu-

minum shipped to the US from Japan don’t pose any threats to American security. “This can issue within the US government. Noth-ing has been decided and therefore the Japanese govern-ment doesn’t have any further comment,” he said.

Still, Kobe Steel Ltd warned there could be ramifications. “We need to look more closely into this, but if these measures are enacted, it would be difficult for the indus-try to avoid any impact,” an official for the steelmaker said. JFE Hold-ings Inc., Japan’s second-biggest

steelmaker, said it will discuss a response with related parties after looking more closely at the US announcement.

India’s steel industry, which vies with Japan as the world’s No. 2 after China, probably won’t be hurt, according to K K Pahuja, president of the Indian Stainless Steel Development Association, in a report in the Business Standard.

Stainless steel “is not a big-ticket item, since the quantity is not very high,” Pahuja told the newspaper. India itself imposes extensive trade barriers on Chi-nese steel.

A file photo of steel sheet rolls in a factory in China.

Saudi Cabinet approves bankruptcy lawREUTERS

DUBAI: SAUDI ARABIA’S Cabinet has approved a bank-ruptcy law, sources familiar with the matter said yester-day.

Modern bankruptcy leg-islation does not currently exist in Saudi Arabia, creating difficulties for struggling com-panies seeking to restructure debt with creditors since the 2009 global financial crisis and, more recently, the dip in oil prices. The kingdom is embarking on an intensive drive to overhaul its economy, including updating outdated laws, as it seeks to create an investor-friendly climate to push through a multi-billion dollar pipeline of asset sales such as the initial public offer-ing of Saudi Aramco, expected to be the world’s largest pub-lic share sale.

“The timing is excellent,” said Bader Al Busaies, man-aging partner at Al Suwaiket and Al Busaies law firm. “Lots of companies are facing financial difficulties. Before it was either liquidation or stakeholders had to inject money. ”

Even for a White House known for veering wildly off subject, President Donald Trump’s efforts to highlight his plans to rebuild the nation’s ailing infrastructure seem particularly

cursed.The first time Trump sought to put a weeklong

spotlight on his administration’s plans, the effort quickly imploded with former FBI Director James Comey’s dramatic testimony before Congress.

The second time the White House launched an “infrastructure week,” it was derailed by Trump blaming “both sides” for violence at a rally of white supremacists in Charlottesville, Virginia, that left one woman dead.

Last week, as the White House prepared its biggest push yet - with the rollout of an actual plan - the effort was overshadowed by continuing coverage of alleged domestic abuse by a senior Trump aide, a horrific school shooting in Florida and the indictment of Russian Internet trolls for interfering in the 2016 presidential

election. That same week, the president’s veterans affairs secretary, David Shulkin, came under renewed scrutiny for a trip he took to Europe, and Trump himself faced yet another round of accusations of extramarital affairs, including from a former Playboy model.

“It’s become a bit of a running joke, the words ‘infrastructure week,’ “ Republican consultant Doug Heye said. “If Trump made much progress this week, I

don’t know that anyone would have seen it.”Trump’s failure to gain traction on a marquee

campaign promise, however, cannot be explained entirely by circumstance.

The president’s own rhetoric last week left lawmakers questioning how committed he is to seeing legislation pass. Some aides wonder if he’s lost interest in the subject. And Trump has continued to send mixed signals about key aspects of his plan, including how it should be paid for.

The White House initiative aims to pump $1.5 trillion into roads, bridges, airports and other critical infrastructure over the coming decade and dramatically reduce the time it takes to get federal permits for such projects.

Though touted as a bipartisan push, the plan Trump formally unveiled Monday was widely panned by Democrats, who complained that all but $200bn of the tab would have to be picked up by states and localities.

While some setbacks were unforeseen - Trump canceled an event highlighting a highway construction project in Florida in the wake of the Parkland school shooting - even some in the president’s own party were underwhelmed by the rollout of his 53-page plan.

“It was just kind of dumped out there,” said one Republican consultant close to the White House, who requested anonymity to offer a more candid assessment. Trump debuted the plan at a White House discussion with state and local leaders, but it was eclipsed by the handling of abuse allegations against former White House staff secretary Rob Porter. Traditionally, presidents have tried to make a much bigger splash when pushing a major initiative. Instead, Trump seemed less than enthused about the prospects for his plan at some points.

Trump’s infrastructure push overshadowed by scandal and tragedy

Republicans face first test of tax cuts’ power to sway votersJOHN WAGNER & ASHLEY PARKER

THE WASHINGTON POST

TIM REID

REUTERS

MARK Marran, an operations manager for a Fortune 500 company, voted for Donald Trump. Two weeks ago he

noticed an extra $100 in his bimonthly pay check, courtesy of sweeping tax cuts passed by the Republican Congress late last year.

Marran says the extra cash is nice, but it will not change his life.

“A lot of people around here think (the tax cuts) were a giveaway to the rich,” said Marran, 56, a resident of this city of 14,000 about 30 miles southwest of Pittsburgh.

Just up the street, George Smith, an optician who makes $55,000 a year, echoed that sentiment. Taking a pull from a cigarette, the Trump voter said he is now getting an extra $120 a month in his paycheck. But he says it is the wealthy who really scored.

“It’s almost like being thrown a bone,” said Smith, 59.

These are worrying words for the GOP, which is banking on the tax cuts pushed by President Trump to help Republicans retain control of the House and Senate in midterm elections this November.

A crucial early test is set for March 13 here in western Pennsylvania.

Republican candidate Rick Saccone, a conservative Trump loyalist, is vying to win a special election for a congressional seat in a district that the president won by 19 points in 2016.

Yet recent polls show a tightening race in Pennsylvania’s 18th district, where Republicans typically enjoy a double-digit advantage.

Political analysts point to a number of factors fueling a competitive race, including Trump’s low approval ratings and heightened Democratic enthusiasm. Democratic challenger Conor Lamb, a retired Marine and former federal prosecutor, is running as a moderate in a district where liberals are viewed with suspicion.

Saccone, meanwhile, has been touting Trump’s signature legislative achievement as a boon for the middle class. “Tax cuts are changing lives,” says one of Saccone’s TV spots. But it remains to be seen whether the four-term state representative can persuade tax-cut skeptics such as Marran and Smith.

Such doubts are reflected in a new nationwide Reuters/Ipsos public opinion poll that shows a plurality believe the legislation is a windfall for the wealthy and big businesses.

Some 36 percent of respondents said the rich would benefit most, while another 22 percent said it would be US corporations. Just 13 percent said they believed that the middle class would be the main beneficiaries.

The poll also suggests that the tax plan alone may not fuel Republican turnout in November. Some 55 percent of respondents said the tax plan “makes me more interested in voting for Democrats” or “will not change my interest in voting.”

In interviews with 30 voters in Pennsylvania’s 18th district, Reuters found most were ambivalent about the tax cuts. Most acknowledged they would keep more of what they earned. But that did not necessarily translate into support for the legislation or for Saccone, the Republican congressional candidate.

Trump voters Marran and Smith said they were still undecided about next month’s contest. In Upper St Clair, a wealthy Pittsburgh suburb, Republican Bill Hartman, 59, said he plans to cast a vote for Lamb. This despite the fact that Hartman’s top tax bracket will drop to 25 percent from 28 percent.

“The tax cut was meant to show (the GOP) did something,” said Hartman, who earns more than $100,000 a year selling advertising. “But it was just to help the wealthy.”

In contrast, Glen Laufer, a food service worker in nearby Bethel Park, says he is thrilled about the extra $120 he saw in his paycheck last month. He said he is voting for Saccone. “This gives the middle class more money, which will make people more willing to spend money,” Laufer said.

Tax cuts should play well with voters here, most of whom will benefit. The predominantly white district stretches from wealthy southern Pittsburgh suburbs in Allegheny County, down through the middle class community of Washington and into the coal mining and farming territory of Greene County bordering West Virginia.

Pennsylvania’s 18th district is wealthier than the national average with median household income of $64,000 in 2016. An analysis by the

left-leaning Tax Policy Center has concluded that the top fifth of US earners will get a 2.2 percentage point tax cut from the legislation, compared to a 0.4 percentage point reduction among the poorest fifth.

In a telephone interview, Saccone, the Republican candidate, said small business owners and voters he has met are pleased with the extra income.

“A lot of the benefits have only just begun to accrue,” Saccone, 59, said.

Indeed, tax experts said that because employers had until February 15 to start using the new tax-withholding tables issued by the IRS, some employees may not start seeing a difference in their paychecks until early March.

“By the time November comes around people are going to be dancing in the street,” Saccone said.

But with only a few weeks left until the Pennsylvania contest, Trump is not leaving anything to chance in a seat that Republicans have held since 2002. The president is planning a rally later this month in Pittsburgh and is expected to praise Saccone and the tax overhaul. The special election, which will fill a seat left vacant when incumbent Republican congressman Tim Murphy quit amid personal scandal, is an early litmus test for the GOP tax message, said Ford O’Connell, a Republican strategist.

It is “a trial run,” heading into November, he said. “Trump obviously wants to hold the seat and Trump wants to find out if he has delivered enough to keep voters happy.”

Meanwhile Lamb, the 33-year-old Democrat, is trying to walk a fine line in this conservative district. He tells voters he is not against tax cuts, but opposes what he sees as legislation designed to give the biggest breaks to the wealthiest Americans and large corporations.

“I would have liked people in the middle to be the sole beneficiaries”, Lamb said. “We know who that bill was for.”

Republican groups, meanwhile, have already spent nearly $5m on ads tying Lamb to Democratic House leader Nancy Pelosi, who derided the bigger paychecks that many Americans are now seeing as “crumbs.”

FRUSTRATED by Brexit negotiations, angry at Brussels or simply afraid of the future,

ordinary Britons and other Europeans are already taking life-changing decisions a year before Britain leaves the EU.

Office workers, farmers and radio hosts are taking on new nationalities, relocating their businesses or looking forward to lucrative alternative trade deals, as politicians struggle to come up with a plan.

“Other people my age, they are starting settling down, they make more long-term plans with their lives,” said 32-year-old Matt Davies, a British expat in Madrid.

“It’s very difficult for me to plan anything beyond March 2019 because you just have no idea what is going to happen,”

the call centre worker said. British and EU diplomats

resumed negotiations in Brussels last week and are hoping to agree next month on a post-Brexit transition period.

But the shape of future relations between Britain and the EU is far from certain and the British government is deeply divided over how to proceed.

That uncertainty is even more pressing for the three million EU nationals living in the UK, many of whom are now questioning their future there.

Brexit affects “every part of our lives”, radio presenter Gosia Prochal, one of nearly a million Polish citizens living in Britain, told AFP.

The 25-year-old is based in Peterborough, a city in eastern England that has seen a sharp rise in immigration in recent years and voted 61 percent in favour of leaving the EU in the

2016 referendum. AFP spoke to five EU

nationals and five Britons in the UK, as well as five British citizens living in continental Europe about their hopes and fears ahead of the expected Brexit date of March 29, 2019.

William Lynch, from Northern Ireland, farms oysters in Lough Foyle.

He faces having to move his business two kilometres downstream to the Republic of Ireland -- across a currently invisible boundary -- if customs tariffs come in after Brexit.

“I can’t really leave it till the last minute to do that,” the 63-year-old ex-fireman said.

The oysters he lays down this year, largely for export to France, will not be harvested until after the UK has left the EU.

“I can’t work with uncertainty,” he said.

Brexit-backing sheep farmer Pip Simpson said he felt Brussels was making the negotiations “as awkward as possible” to deter other countries from leaving the bloc.

The 51-year-old voted to leave the European Union in the June 2016 referendum but now faces the prospect of losing the EU subsidies his farm relies on.

Polls in recent months have shown a slight increase in the number of people who, in hindsight, think Britain was wrong to vote to leave the EU, but experts say the difference from the referendum is negligible.

“The country was divided down the middle 18 months ago and not a great deal has changed,” political scientist John Curtice told a conference this month. The discord has left some Britons living in the EU feeling alienated. Business

intelligence consultant Andrew Ketley, 41, who moved to Munich in February last year, is putting down roots.

“We don’t want to live in a country which is tearing itself apart,” he said.

Barnaby Harward, 44, an editor who has lived in Warsaw with his Polish wife since 2005, is applying for Polish citizenship and ending thoughts of moving back home.

“The whole Brexit thing has put me off. It kind of made me feel that my country is not what I thought it was,” he said.

EU citizens in Britain are taking similar decisions.

Gabriela Szomoru, 32, a Romanian who has lived all her adult life in Kent, southeast England, is now applying for British nationality, as well as UK accountancy qualifications.

“England is my home now,” the salad-farm bookkeeper said.

Britons & other Europeans count personal cost of BrexitAFP

The White House initiative aims to pump $1.5 trillion into roads, bridges, airports and other critical infrastructure over the coming decade.

George Smith, an optician who makes $55,000 a year, echoed that sentiment. Taking a pull from a cigarette, the Trump voter said he is now getting an extra $120 a month in his paycheck.

Office workers, farmers and others are taking on new nationalities, relocating their businesses or looking forward to lucrative alternative trade deals, as politicians struggle to come up with a plan.

23MONDAY 19 FEBRUARY 2018 BUSINESS VIEWS

A file picture of signs adorn the entrance to Congressional candidate Conor Lamb’s headquarters at 149 East High Street in Waynesburg, Pennsylvania, US.

Brian Hegarty of Travel Leaders Network says each Caribbean island offers a different vibe,

from relaxing on the beach to adventures, shopping and din-ing. All-inclusive resorts “take the worry out of figuring out where to go for every meal and watching your budget. There are also some small lux-ury properties that really cater to the affluent traveler looking for a more curated local experience.”

Hopper.com says the most popular Caribbean destina-tions for spring break are Montego Bay, Jamaica ($479 round-trip); Santo Domingo ($500 round-trip) and Punta Cana ($569 round-trip) in the Dominican Republic; Nassau ($612 round-trip) in the Baha-mas, and Oranjestad, Aruba

($567 round-trip).Dan Marmontello at

CheapCaribbean.com says “there are still deals to be had on nearly every island, but Aruba, Curacao, and Grand Cayman are filling up the quickest,” while destinations like Turks and Caicos, St. Lucia, the Bahamas, Antigua, Jamaica and the Dominican Republic “generally have more rooms available last minute” and “potentially lower pricing for a spring getaway.”

In the Bahamas, Baha Mar, a new resort complex in Nas-sau, includes the SLS Baha Mar and Grand Hyatt Baha Mar hotels, an 18-hole Jack Nick-laus-designed golf course and an ESPA spa. Atlantis Paradise Island completed a redesign of The Cove, a 600-suite hotel. And bloggers are raving about “glamping” in solar-powered tents at the Other Side on Eleuthera.

Barbados has “Sugar Sea-son” events through April 15, including tours, parties and cooking classes.

The Cayman Islands’ Bata-bano festival, May 2-6, includes a charitable mas-querade-themed dinner dance at the Pedro St. James castle and a street parade.

On Turks and Caicos, guests of The Somerset on Grace Bay can borrow a bike and pedal to Potcake Place for a puppy playdate.

A new online platform from the Professional Associa-tion of Diving Instructors offers an island-by-island guide to sightseeing, dive shops and “liveaboards” - when you spend a night or more on a boat.

A handful of islands were hit hard by hurricanes, includ-ing Puerto Rico, St. Bart’s, St. Martin, Anguilla, Dominica and the Virgin Islands. Cruise ships have returned to all ports, and several Princess cruises are offering passengers voluntourism opportunities to help recovery efforts.

Some hotels damaged by storms are still renovating. Others have reopened. Before you book, ask about condi-tions, beach erosion, debris and construction noise. d.

Fort Young Hotel, Domini-ca’s largest hotel, partially reopened in January and is offering a “voluntourism package” that starts at $837 for five nights, double occu-pancy, including ground transportation to and from airports, breakfast and an island tour. The voluntourism involves helping to clear debris on a segment of the Waituku-buli National Trail. Dominica is known for its wild, rugged landscape of mountains and rainforests.

In San Juan, Puerto Rico, many hotels are operating normally, though some like

the Caribe Hilton are still undergoing repairs. San Juan Marriott marketing manager Joaquin Cruz says his hotel’s beachfront property is fine, and the neighborhood where it’s located, Condado, is “buzz-ing with nightlife, restaurants and shops.” It’s located 10 minutes from Old San Juan by cab, but guests can also bor-row bikes from the hotel and follow a bike path there. One of the hotel’s two towers is closed for repairs from water damage, but Cruz said the work in that tower is “invisible to guests” in the open tower. Rates start at $289 with breakfast for two.

Fareness.com says aver-age round-trip flights from the US mainland to San Juan between March 24 and April 29 run $367.

St. Barth Properties reports that more than half of its villas on St. Bart’s are ready for guests. Zemi Beach House, a luxury boutique hotel on Anguilla’s east end, reopened February 15. And on Nevis, you can join the Nisbet Plantation Beach Club’s general manager on a 5-mile hike or visit Alex-ander Hamilton’s home and Mount Nevis.

On the British Virgin Islands’ Anegada, some prop-erties are offering four nights for the price of three if you book by February 28 for a stay through April 15.

24 MONDAY 19 FEBRUARY 2018

INsightback to BUSINESS

CAPITALCOMMENT

Market Talk

Caribbean spring break: Ideas, prices AP

Big M&A deals seen keeping corporate borrowing spree aliveNEW YORK/BLOOMBERG

Get ready for what could be another record year for corporate borrowing. The US tax overhaul is freeing up cash for companies and the Federal Reserve is hiking rates, but

chief financial officers are still eager to borrow, UBS strategists wrote this week. The Swiss bank and Wells Fargo both expect businesses to sell as much US invest-ment-grade and junk bond debt this year as they did in 2017, if not more, in part to fund an expected uptick in mergers and acquisitions.

If blue-chip corporate bond issuance sets another record, it would be the fifth year in a row that it reached a new high. The forecasts imply that the bene-fits from tax cuts are more likely to flow to shareholders than bond investors, and that for money

managers, buying US com-pany debt may not be the sure thing that many previ-ously thought.

“Companies are not going to pay down debt if investors aren’t worried about leverage,” UBS Group AG strategist Stephen Cap-rio said in an interview. “And investors aren’t wor-ried about leverage.” Risk premiums for corporate bonds, or spreads, are tighter than can be justified by the tax overhaul, the strategists wrote.

So far investment-grade issuance is strong by histor-ical standards. Companies sold $181.3bn of the bonds from the start of the year through Thursday. That’s below 2017’s $238.5bn, but above 2015 and 2016 levels,

according to data compiled by Bloomberg. Net overall corporate debt levels, including non-financial invest-ment-grade companies, high-yield borrowers and leveraged loans, have increased over the last several months, according to UBS strategists led by Caprio and Matthew Mish.

Recent jumps in longer-term bond yields may give companies more incentive to lock in rates while they’re still relatively low, said Tom Hauser, a high-yield port-folio manager at Guggenheim Investments.

“There’s definitely an incentive for companies to get borrowing done now, given where yields are,” Hauser said. Guggenheim manages more than $189 billion of fixed-income assets.

Wells Fargo & Co. strategists led by Trey Winslett forecast gross issuance to rise one percent from last year due to upcoming maturities and mergers and acquisitions related funding, they said in a Feb. 9 report. Such deals also bode well for supply of so-called reverse Yankee bonds -- euro-denominated debt issued by US companies -- Wells Fargo strategists led by Nathaniel Rosenbaum said in a report Thursday.

Don’t lose sleep over volatility: JPMorganNEW YORK: For skittish inves-tors now paying up to protect against swings in US stocks, JPMorgan Chase & Co. has a message: It’s time to move on.

The volatility shock that rocked markets a week ago is unlikely to violently return, making it unattractive to buy expensive options that would benefit from big gyrations in US stocks, strategists led by Bram Kaplan and Marko Kolanovic say. That’s because stocks should continue to recover now that selling forced by system-atic trading strategies has likely ended and underlying equity fundamentals remain strong.

The view isn’t yet encapsu-lated in financial markets, which are pricing near-term volatility in US stocks that’s his-torically elevated relative to their European counterparts,

US Treasuries, junk bonds and gold, the team wrote in a note to clients Friday. That’s partly a function of how the market turmoil that sent stocks into correction was largely con-tained in equities.

“This rich S&P 500 volatil-ity premium should continue to normalize against other risk assets near term,” the report said. “Even if an increasingly hawkish Fed and firming infla-tion were to cause the market to roll over, other risky assets should be increasingly impacted, rather than this remaining an S&P 500-centric issue.” For the analysts, trading opportunities have arisen in options where investors can sell expensive US equity volatility and buy cheaper gauges of implied volatility for other asset classes.

Jim Strugger, Derivatives Strategist at

MKM Partners in New York

We expect the current shock to herald a higher

volatility regime

So far investment-grade issuance is strong by historical standards. Companies sold $181.3bn of the bonds from the start of the year through Thursday. That’s below 2017’s $238.5bn, but above 2015 and 2016 levels, according to data compiled by Bloomberg.

Cruise ships have returned to all ports, and several Princess cruises are offering passengers voluntourism opportunities to help recovery efforts.